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A REPORT ON

SUMMER INTERNSHIP

For

J M Financial, Baroda

Submitted to

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY

(CHARUSAT)

CHANGA

Prepared by

VISHAL SOLANKI ID NO: 13MBA110 M.B.A. First Year

Under the Guidance of Ms. Reshma sable

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM) CHAROTAR UNIVERSITY OF SCIE0NCE AND TECHNOLOGY

(CHARUSAT)

AT & PO CHANGA – 388 421 TA: PETLAD DIST: ANAND, GUJARAT JULY 2014

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CERTIFICATE

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Declaration

I, Vishal Solanki, student of MBA programme at Indukaka Ipcowala Institute of Management (IIIM), hereby declare that the report on customers perception towards mutual fund at JM financial, Baroda. Is a

result of my own work. I also acknowledge the other works cited in the report.

Place: Vadodara Vishal Solanki

Date:

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ACKNOWLEDGEMENT

As it is quite evident that any person before entering in the real world of the business has to undergo training, Training holds very important position in the overall position of education because one can feel the

real place of the real world of business through training.

I am very grateful to CHARUSAT University, I2IM and Dr.Govind Dave (Principal) for allowing me to take my training from such a reputed organisation.

On this project I got the opportunity to work under the sincere guidance of Ms.Reshma sable, who has given me able guidance and constructive criticism at every stage of the work. She was always there to solve my

doubts and guided me in the right direction. I am also indebted to Mr. Ghanshyam Vyas sir (branch head, JMFS, Baroda) who has helped me a lot in

solving the queries, related to mutual fund, capital market and investment trends. I am also very thankful to Mr. Maulik Shah, Mr Rashmin Jadhav, Allwin Macwan , Ashutosh pathak & all equity dealers for their

guidance & support during the summer training program. I also express my thanks to all the employees of the company for sharing their valuable time to me from their tight schedule to give me valuable information.

I am also very thankful to Miss. Kinjal mistry (Placement coordinator) helps me to arranging the summer training in such a reputed organisation.

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TABLE OF CONTENTS

Contents 1. INTRODUCTION.............................................................................................................................................- 7 -

2. ORGANISATION.............................................................................................................................................- 8 -

2.1 History ....................................................................................................................................................- 8 -

2.2 Mission and Vision ..................................................................................................................................- 9 -

2.3 Organisational Structure ........................................................................................................................ - 11 -

2.4 Products................................................................................................................................................ - 11 -

2.5 Geographical Spread of Facilities............................................................................................................ - 12 -

3. FUNCTIONAL AREA...................................................................................................................................... - 13 -

3.1 Marketing Function ............................................................................................................................... - 13 -

3.2 Production Function............................................................................................................................. - 18 -

3.3 HRM Function ....................................................................................................................................... - 20 -

3. FINANCE FUNCTION (ANNEXURE) ................................................................................................................ - 26 -

4. DECISION MAKING ...................................................................................................................................... - 29 -

5. Financial Analysis ...................................................................................................................................... - 31 -

6. Tasks and Activities performed at the organisation......................................................................................... - 37 -

7. My learning from the organisation ................................................................................................................ - 38 -

9. INTRODUCTIONS ......................................................................................................................................... - 40 -

10. RESEARCHE ............................................................................................................................................... - 42 -

10.1 Hypothesis ................................................................................................................................... - 42 -

10.2 Research Gap ............................................................................................................................. - 42 -

10.3 Research Design ........................................................................................................................... - 42 -

10. Data Sources and Data Collection Method ............................................................................................... - 43 -

10.1 Sources of data ............................................................................................................................ - 43 -

10.2 SAMPLING PLAN .......................................................................................................................... - 43 -

11. DATA ANALYSIS, FINDINGS AND INTERPRETATION .................................................................................... - 45 -

12. Conclusions and Limitations ................................................................................ Error! Bookmark not defined.

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Executive Summary

JM Financial is an integrated financial services group, offering a wide range of services to a significant clientele that includes corporations, financial institutions, High net-worth individuals and retail investors.

The Group has interests in investment banking, institutional equity sales, trading, research and broking, private and corporate wealth management, equity broking, portfolio management, asset management,

commodity broking, NBFC (Non-Banking Finance Company) activities, private equity and asset reconstruction. While each of these businesses is independent in itself, they share the Group’s belief of trust being the most important factor for the organisation. The values of integrity, teamwork, innovation,

performance and partnership shape the corporate vision and drive it to its purpose.

Their people bring knowledge, experience and diversity to bear in their every endeavour. Their talent and passion has powered them to the pre-eminent position they occupy in the Indian financial services landscape

Their Research team offers access to a wealth of research, news and market information. Theyaim to provide

the materials people need to help shape their investment strategy. They believe the quality of the financial

information people access can significantly affect the investment decisions. Thus, their research team is

dedicated to keeping you up to date, with reports ranging from quarterly, long-term forecasts to detailed

daily updates. They also offer their clients more short-term research.

The value of what they do for their clients depends on giving their people the platform to achieve their own

aspirations.

JM Financial can provide a superior foundation for building a professional career - a place for people to learn, to achieve and to grow. A philosophy that balances personal lifestyles, perspectives and needs is an important part of our culture.

They believe that the ultimate identity and success of their Firm will be the excellent quality of their people

and their efforts. The talent and passion of their people is critical to their success. Together, they share a common set of values rooted in integrity and excellence.

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PART: 1

ORGANISATIONAL PROFILE

1. INTRODUCTION JM FINANCIAL SERVICES PVT LTD

JM Financial Limited (JM Financial) is an integrated financial services company incorporated in 30th

January of the year 1986 under the name of JM Share & Stock Brokers (JMSSB).

JM Financial offering a wide range of services to a significant clientele that includes corporations, financial

institutions, high net-worth individuals and retail investors. The Company has interests in investment banking, institutional equity sales, trading, research and broking, private and corporate wealth management,

equity broking, portfolio management, asset management, commodity broking, NBFC (Non Banking Finance Company) activities, private equity and asset reconstruction.

JM Financial is the subsidiary company of JM Financial & Investment Consultancy Services. JM Financial Ltd's business includes stock and share broking, securities underwriting of debentures and shares, and

finance broking. The company also provides services in asset management, trust, and investment banking. JM Financial is

regrouping itself and this involves the establishment of 5 subsidiaries for trading, securities broking, insurance broking, NBFC business, and insurance trading.

The JM Financial Company has set up in Singapore, the IL & FS Invest smart Asia Pacific in order to get hold of the opportunities in that particular region. JM Financial has brought up an investment program worth

400-500 million in 2006. The company is going to use this money to establish offices in the far eastern countries to expand the

number of branches and also to take a membership with the Dubai Gold Exchange.

The Company JM Financial is also planning to enter into the sector of insurance business. As a part of the regrouping of the company, it has established JM Financial Common trade Company which is a commodity broking and trading company. The JM Financial Company will be starting its 1st capital

venture fund called the JM Financial India Fund which is duly registered with the SEBI.

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2. ORGANISATION

2.1 History

JM Financial Limited (JM Financial) is an integrated financial services company incorporated in 30th January of the year 1986 under the name of JM Share & Stock Brokers (JMSSB).

JM Financial offering a wide range of services to a significant clientele that includes corporations, financial institutions, high net-worth individuals and retail investors.

The Company has interests in investment banking, institutional equity sales, trading, research and broking, private and corporate wealth management, equity broking, portfolio management, asset

management, commodity broking, NBFC (Non-Banking Finance Company) activities, private equity and asset reconstruction.

JM Financial was started as a private limited company as an arm of JM Financial & Investment Consultancy Services.

As at 15th June of the year 1988, the company was converted as a deemed public limited company and subsequently, the company became a public company by making necessary alterations in its

Articles of Association.

The Company entered into a Joint Venture agreement with Morgan Stanley in December of the year

1997.

During the year 2001, the company redeemed last instalment of 14% Debenture and also repaid part of its unsecured loans to its promoters with the ultimate objective of bringing down the borrowing and making the company a Zero Debt Company.

During the year 2004, the company had changed its name from JM Share & Stock Brokers to JM

Financial Limited.

J.M. Securities Private Limited was amalgamated with the company in the year 2006. JM Financial

had launched a corporate private equity fund in August of the same year 2006 under the name of JM Financial India Fund, with US-based Old Lane Partners, LP, being the lead investor/co-sponsor to the

Fund.

As of August 2007, the company had launched a unique Portfolio Management Scheme that aims to

offer 100% capital protection as well as potential capital appreciation based on the Dynamic Portfolio Insurance (DPI) methodology.

As at March of the year 2008, JM Financial had acquired JM Financial ASK Securities Private

Limited. The Company has opened a full-fledged branch at Vizag, the port city of Andhra Pradesh in

the month of September of the same year 2008.

2006 -JM Financial launches a private equity fund 2007

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2008

-The Company has issued Bonus Shares in the Ratio of 3:2. - The Company has splits its face value from Rs10/- to Rs1/-.

2009

- The Board has recommended a dividend of Re 0.20 per share.

- Finance Asia Country Awards for Achievement - best equity House in India. - Best Workplaces in India - Ranked among top 50 companies by Great Places to Work Institute.

2010

- Board recommended a normal dividend of Re. 0.25 per share and a "silver jubilee special dividend" of Re. 0.25 per share on account of this being the twenty-fifth year of the Company.

2011

- Board recommends a dividend of Rs. 0.60 per share.

- IFLR India Awards - JM Financial wins "Team of the Year" in the Indian Investment Banks category. - JM Financial Services received the highest Broker Grading of BQ1 by the rating agency, CRISIL.

2012

- The Board has recommended a dividend of Re. 0.60 per share.

- The Great Place to Work Award 2012 conducted by the Great Place to Work Institute, India in partnership with Economic Times

2.2 Mission and Vision

to be the most trusted partner for every stakeholder in the financial world.

being trustworthy is the most efficient way of generating and retaining long-term business

–trust is the starting point of trusting others.

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Milestones

Leaders in innovation – Amongst the first to introduce a several financial instruments in the Indian Capital Markets.

Partly convertible debentures

Non-Convertible Debentures with Warrants

Zero Interest Bonds

Secured Premium Notes

Double Option Bonds & Deep Discount Bonds

Sponsored one of India’s first private sector mutual funds namely JM Financial Mutual Funds (formerly known as JM Mutual Fund)

One of the largest pan-India networks of IPO & Mutual Fund Agents (IFAs)

Instrumental in introducing Book Building process for IPOs in India

VALUES:-

Client focus

We always put the interest of our client before our own. Understanding our client needs, seeking new opportunities for them, addressing them and delivering unique as per their expectation is imperative

to us. The success of our client is the biggest reward for us.

Teamwork

We believe extensive teamwork is what makes is possible for us to work together towards a common goal. We value and respect each individual’s commitment to group effort.

Implementation

Our expertise, experience continuous focus on the quality of execution ensure effective implementation of our strategies

Integrity

Integrity is our fundamental to our business. We adhere to moral and ethical principle in everything

we do as professionals, colleagues and corporate citizens. Our reputation based on our high standard of integrity is invaluable.

Innovation

We understand our client’s need and developed solution for the most complex or the simplest

financial transaction, whether for individuals or institutions. Creativity and innovation and driving factors in everything we do. Therefore we encourage new ideas that help us address unique opportunities.

Partnership Our relationship with our entire stakeholder reflects our spirit our partnership. Clients see us as trusted advisor, shareholders see us as partner and employees see us as family. We respect, trust and

support all our shareholders.

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2.3 Organisational Structure

2.4 Products

1-Equity and derivatives 2-Portfolio Management services (PMS)

3-Research Services 4-IPO & Mutual fund Distribution services

5-Depository Services 6-Structured Products 7-Trading Terminal for volume Traders

8-Trading Products and services

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2.5 Geographical Spread of Facilities

They are among the largest distributors of third party products (Mutual funds/IPO). They have a strong network of more than 25,000 IFAs spread across India. They are provided their services in 15 different

places all over India like Ahmadabad, Bangalore, Chennai, Hyderabad, Indore, Jaipur, Kolkata, Mumbai, New Delhi, Pune, Rajkot, Secundarabad, Surat, Vadodara, Vizag and also provided services outside the

India. Main decisions are taken at the head office at Mumbai and followed by all the branches.

JM Financial

Equity and derivatives

Research Services

Depository Services

Trading Terminals for

Volume Traders

Trading Products

and Services

Portfolio Management

Services (PMS)

Structured Products IPO and Mutual Fund

Distribution Services

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3. FUNCTIONAL AREA

3.1 Marketing Function

The marketing department is very important for our business because the more the people know about product more and more they buy and more business is generated and by this industrial development done.

In JM Financial services the marketing is done at branch level. The people are decided by the branch area and the locality and the requirement of the branch. The main product that required the marketing is as follow:

-mats

Advertising

Personal selling

Sales promotion

Product/Services

JM Financial offers a wide range of services under one roof like

Equity and Derivatives

Gain from their trading and investment ideas, derivatives strategies and keep people updated on

market movements

Portfolio Management Services (PMS)

Their portfolio managers create and manage customised portfolios by thoroughly understanding the risk thresholds and investment objectives. They manage every portfolio with a rational and

disciplined approach, ceaselessly assessing risk factors and maintaining a good understanding of the investment market

Research Services

Stock ideas: The research team analyses several companies and picks a select few, which are fundamentally strong.

SMS alerts: Anyone can subscribe to SMS Alerts from JM financial Services Pvt. Ltd. and stay in touch with the stock market on the move.

Market Snapshots: They offer market snapshots that contain economy and corporate news. It also

lists bulk deals, nifty gainers and losers and forthcoming corporate events that may have an impact on your portfolio.

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Monthly research reports: Their advisors identify opportunities for people in consultation with their research team and update them from time to time on any event or development that takes place in the

companies recommended.

IPO and Mutual Fund Distribution Services

Keeping in mind the investment objectives, they advise to subscribe to the best IPOs. In case of mutual funds, they advise people which schemes are ideal for them, taking into consideration

individual risk, investment term objectives etc.

Depository services

They offer depository services to make them equity investing exercise hassle free.

Structured Products

It is generally a pre-packaged investment strategy, based on Derivatives and is a synthetic instrument created to meet specific needs that cannot be met from the standard financial instruments available in

the markets.

Trading terminals for high volume traders

If you are a high volume trader, trade at your convenience through their state-of-the-art ODIN trading platform at lightning speed.

Trading product and services

Client ODIN: For clients who want to trade directly, they have a specialised trading platform called, as “Diet ODIN” which is single-client trading front-end software. Thus clients can view all Exchanges on a single screen. Diet Odin offers the convenience of Offline settlement.

Target Market

Target market of JM Financial is all those who want to invest either in fixed deposit or want to invest in share market. JM financial also help the person who wants to take expert advice.

The JM financial target market is as follows

Individual Investors

Businessmen

Professionals

Conservative investors

Aggressive investors

Market share of the company

The current market capitalisation stands at Rs 3,157.39 Crore. The Company has reported consolidated sales

of Rs 184.17 crore and a Net Profit of Rs 43.27 crore for the quarter ended Dec 2013.

It is listed on the BSE with a BSE Code of 523405 and the NSE with an NSE Code of JMFINANCIL.

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Promotional Measures

Promotion refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty. The elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance,

creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.

JM Financial uses the following promotional measures for their product/services.

Advertising (leaflets, brochures)

Publicity

Development of franchise

Development of sub-broker

Distribution channel

The distribution channel of JM financial is as follow

JM Financial provides their services to the retail clients through sub-brokers channels. They are the

individual financial distributers. They also provide their services to the client through Private Wealth group.

JM Financial

Private wealth Group

(PWG)

Sub-Broker Channel

(IFD)

Clients Retail Client

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Competitors

The competitors of JM financial are as below

Name Current Price % change Market Cap

Rel Capital 654.60 1.02 16113.63

Bajaj Holdings 1218.25 2.77 13558.33

L&T Finance 76.15 -1.42 13087.69

Muthoot Finance 199.00 -2.47 7901.57

JM Financial 41.65 2.71 3157.39

These all are the competitors of JM financial. The comparison between the current price, percentage change in the price and market capitalisation is given. We can say that the current price of JM Financial is very low

as compared to the other financing companies.

The Market capitalisation is also very low in comparison with other companies. Among all the companies Bajaj holdings is at the highest in the entire three categories i.e. current price, change in price and market capitalisation. There is decrease in the price of L&T Finance and Muthoot Finance.

Their market capitalisation is also low as compared to Real capital and Bajaj Holdings. There is a rise in

price of JM financial by 2.71%. It is a good sign for the company. Thus, it indicated the growth of JM Financial.

Branches and Subsidiaries

JM Financial group’s Asset Management Company (AMC) for its mutual fund business, commenced

operations in December 1994. JM Financial Mutual Fund was one of India's first private sector mutual funds that simultaneously launched three funds - JM Liquid Fund (now JM Income Fund), JM Equity Fund and JM Balanced Fund.

Today, JM Financial Mutual Fund offers a bouquet of funds that cater to the diverse needs of both its institutional and individual investors.

It was decided to merge JM Financial Institutional Securities Private Limited, JM Financial Securities Private Limited, JM Financial Ventures Limited and its four subsidiaries viz., Oracle Enterprises Private

Limited, Latitude Mercantile Private Limited, Ardour Trading Private Limited and Saptarishi Sales and Trading Private Limited with JM Financial Consultants Private Limited (being renamed as JM Financial

Institutional Securities Private Limited), a wholly owned subsidiary of their Company.

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3.2 Production Function

Operating cycle

The above chart indicates the flow of operating cycle of JM financial. It is very simple and continuous process done in the organisation.

First of all they collect money from different investors. And pool their money with their fund managers, they are the experience persons and have knowledge about the market situation.

Fund managers invest this money into different securities and from these securities they generate returns.

This returns passed back to the investors as a profit and investors reinvest this money. This process tends to be continuous as same.

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Supply chain and logistics

The distribution channel of JM financial is as follow

JM Financial provides their services to the retail clients through sub-brokers channels. They are the individual financial distributers. They also provide their services to the client through Private Wealth group.

JM Financial

Private wealth Group

(PWG)

Sub-Broker Channel

(IFD)

Clients Retail Client

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3.3 HRM Function

JM Financial is a dynamic and progressive group that actively fosters a challenging work environment and encouraging entrepreneurship. With trust being the critical part of their business belief, they lay strong

emphasis on integrity, teamwork, innovation, performance and partnership.

Their professional staffs with diverse backgrounds bring varied talent, knowledge and experience to the Group, helping their businesses to remain competitive, achieve greater success, and newer milestones.

At JM Financial, they offer a well-defined career path in the financial services sector, with simple opportunities to think, explore, learn and grow. Additionally, we give the flexibility to their employees of

moving within the Group across various businesses and locations. The Human Resources (HR) function aims to achieve mutually rewarding association with its human capital

and thus facilitate optimum return on investment. HR plays the role of an effective business partner in building the Group HR strategy and supports all our businesses by delivering best HR practices, processes

and systems. HR coverage team members responsible for individual business units support employee engagement,

resource, data analysis, employee relations and guidance, performance management, compensation and benefits and learning & development services.

At JM Financial, they participate in a year on year employee satisfaction study conducted by Great Place to Work in partnership with the Economic Times.

During FY 2011-12, one of the subsidiaries of their Company viz. JM Financial Services Private Limited

featured among the top 10 companies in India under the Rewards and Recognition category by Great Places to Work.

HR function plays a critical role in managing the Group most important asset, their people. HR team’s broad range of activities includes:

• Talent Management • Retention programs • Succession planning

• Workforce diversity • Progressive compensation and benefits design and implementation

• Employee relations and Employee engagement • Learning & Development • Performance Management System

• Rewards & Recognition

Their HR policies make them an innovative and attractive employer in the market place. They have over 500 man years of cumulative Senior Management experience across various financial services activities.

Promoting internal mobility, recruiting talent, encouraging sustained employee development and offering

competitive compensation and engaging work environment are all factors that make JM Financial an innovative and attractive employer.

Their people work together across regions and divisions. This lively collaborative exchange of information and experience creates new business opportunities that in

turn benefit their clients. Their total employee strength as on March 31, 2012 was 1,070 compared to 1,129 a year before

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HUMAN RESOURCE PLANNING

PROCESS OF HRP

RECRUITMENT AND SELECTION

Recruitment is the process of finding and attracting capable applicant for employments. The process begins with human resource planning and identifying job vacancies and ends with the desired applications are

submitted.

While, Selection is the process of differentiating between applications in order to identify or hire those with

a greater likelihood of success in our job.

After That Head Office Do Actual HRP For Each Branch

Head Office Check Whether The Person Actually Required

Head Office Collect The Data Of Requirement Of Each Branch

Each Branch Send There Requirement To The Head Office

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Flow of recruitment and Selection process

Training and Development

Whenever a new employee is recruited training is provided to the new employee. The number of training on which types of work the person is going to do. But it is on an average 15 days to 20 days training is provided to a new employee.

Training and development refers to the official and on-going educational activities within an organization

designed to enhance the fulfilment and performance of employees. Training and development programs offered by a business might include a variety of educational techniques and programs that can be attended on a compulsory or voluntary basis by staff.

At JM Financial, whenever a new employee is recruited training is provided to the new employee. The type

of training depends on the type of job/work allotted to the employee. The training period can range from1 day to an average of 15 days. The training is provided in the company

only. Audio visual aids are used to provide training and the employees are required to take the test once the training is provided.

Promotion Policy

The employees are given the promotions to higher posts and positions as and when vacancies are available

or when new posts are created at the higher levels.

It is quite common in all types of organizations. Promotion means higher position to an employee who carries higher status, more responsibilities and higher salary.

The higher status and salary is the two most important ingredient of any promotion. It is an advancement of employee to a higher post with greater responsibilities and higher salary, better service conditions and thus

higher status.

LEVEL

Junior management

Senior management

SOURCE OF RECRUITMENT

Internal source mainly through

reference

External source mainly through advertisement

SELECTION METHOD

Interview

Interview

SELECTION AT

Branch level

Head office level

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Demotion is the opposite of promotion. It is a downward movement of employees in the organizational hierarchy with lower status and lower salary.

It is the down warding process and is insulating to an employee. Demotion is the punishment for incompetence or mistake of serious nature on the part of the employee. It is serious types of the penalty or

punishment and should be given rarely and only under exceptional circumstances and tactfully.

Promotion is provided on JM Financial strictly on the merit based. Performance appraisal plays the key role

in the promotion. Employee who has highly rated in his Performance appraisal has better chance of getting promotion.

Transfer Policy

Organisation reserves the transfer whenever need arise. Organisation can transfer any employee at different branch in same city or different city.

Wage and Salary

Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is also determined by the pay rates and salary ranges established by an individual

employer. Salary is also affected by the number of people available to perform the specific job in the employer's employment locale.

The salary of employee is fixed at JM Financial Ltd. The employees are provided with the commission for extra work done by the employee in the organisation.

Entrepreneurship Development

As an extension of their focus on education, they believe that development of entrepreneurship is very

important part of the long term goal of nation building. In their endeavour to support the objective of development of entrepreneurship, JM Financial, together with a few like-minded entities, supports the initiative called Venture Studio of Ahmadabad University. Ahmadabad University in collaboration with

Centre for Design Research at Stanford University, California, USA has set up a centre known as Venture Studio. The objective of the Venture Studio is to create entrepreneurship in young generation and provide

them opportunities to start up innovative ventures. The first batch of fellows from Venture Studio is well on their path to commercially launch the idea they developed at the Venture Studio.

Compensation Benchmarking Studies

The organisation participates in compensation benchmarking studies annually to ensure that the salary bands are as per the current market requirements. The pay philosophy is to be a competitive pay master in our

segment of functionality. Before announcing the annual increments and bonuses, the organisation does a dip-stick study on what is the percentage of increment and bonus announced by competition firms. This helps

them to be at par with the industry, thus providing the necessary monetary requirements and assistance to their staff.

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Corporate Social Responsibility

JM Financial believes that business success is not an end in itself; rather it is a means to achieve higher socio-economic goals. The Company is committed to its stakeholders to conduct its business in a responsible manner.

The Company embraces responsibility for impact of its operations and actions on all stakeholders including

society and community at large. Management’s commitment, work ethics and business processes at Company encourages all its employees

and other participants to ensure a positive impact and its commitment towards corporate social responsibility.

Through its various Corporate Social Responsibility (“CSR”) initiatives, JM Financial Group is enabling entire communities to ‘RISE’ with a vision of transforming the lives of youth from socially weaker and

economically disadvantaged sections of society.

JM Financial Foundation organizes a “Walkathon” which is an annual event, supported by our colleagues and clients by both participation in the walk as well as charity contributions the donations received are used for charitable purposes.

CSR THROUGH PHILANTHROPIC ARMS

In their endeavour to make a positive contribution towards the lesser privileged communities, they have an

organised structure in the form of two philanthropic arms - JM Financial Foundation established in the year 2001 and Kampani Charitable Trust established in the year 1982 to support an array of socio-economic,

educational and health initiatives. The main objective is to contribute in a way which is lasting, is sustainable and scalable. Their initiative has

gained momentum in the last few years. Clarity, accountability and consistency are the cornerstones of their effort.

The Foundation identifies and works alongside several NGOs to work on a number of outreach programs in various fields such as education, health and disaster relief.

PARTNERING WITH NGOS

Education has been a primary focus area of their CSR activities. This includes building of classroom blocks, providing classroom furniture / stationery and payment of fees / providing transport / funding Balwadis.

They have partnered with various NGOs such as, K. C. Mahindra Education Trust, Powai Senior Citizens’ Association, Kherwadi Social Welfare Association, KSB Care and Charitable Trust, The Akanksha

Foundation, YuvakPratishthan, Vishwas, The Lepra India Trust, Ahmadabad University, etc. in various ways to achieve our goal of promoting education.

- 25 -

Management Structure

In the management structure of the J M Financial mainly three levels are there. Higher level, Middle management level and Operational level.

At the higher level mostly strategic decisions are taken and these decisions are followed by the middle level

and lower level people. At the higher level CEO, chairman, managing director is taken the decisions. At middle level branch heads

take decisions of all the branch level work.

And at the operational level all the decisions are implemented. At this operational level supervisors give the orders and employees have to follow that orders and do the actual work.

Group Chief Operating Officer

independent director

Group Chief Financial Officer

CEO

Chairman & Managing Director' '

Group Head - Compliance, Legal & Co. Secretary

Secretary

Employees

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3. FINANCE FUNCTION (ANNEXURE)

Profit and Loss a/c

Particular As at

31.03.2014

(Rs in cr.)

As at

31.03.2013

(Rs in cr.)

Income

Revenue From operation 828.95 797.26

Other operating income 177.72 244.97

Total Revenue 1,006.67 1,042.23

Expenses:

Employee benefits expense 203.16 197.99

Finance costs 307.83 376.92

Depreciation and amortization expense

15.24 12.16

Other expenses 200.28 201.23

Total Expenses 726.51 788.30

Profit before tax 280.16 253.93

Tax Expense:

Current tax 83.19 74.68

Deferred tax 4.83 1.75

Tax adjustment of earlier years(net) 1.62 2.00

79.98 74.93

Profit for the year 200.18 179.00

Less:Share of minority interest 15.15 15.94

Add: Share in profit of associates 24.50 19.86

Net consolidated profit for the

year

209.53 182.92

Earning per equity share ((face value

of Rs.1/- each)

Basic EPS (in Rs.) 2.78 2.44

Diluted EPS (in Rs) 2.72 2.43

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BALANCE SHEET

Particular Mar '14 Mar '13

Sources Of Funds

Total Share Capital 75.53 75.16

Equity Share Capital 75.53 75.16

Share Application Money 11.1 0

Preference Share Capital 0 0

Init. Contribution Settler 0 0

Preference Share Application Money 0 0

Employee Stock Option 0 0

Reserves 2,110.51 1,975.43

Revaluation Reserves 0 0

Net worth 2,197.14 2,050.59

Secured Loans 565.84 946.91

Unsecured Loans 2,082.81 3,320.39

Total Debt 2,648.65 4,267.30

Minority Interest 164.97 150.36

Policy Holders Funds 0.00 0.00

Group Share in Joint Venture 0.00 0.00

Total Liabilities 5,010.76 6,468.25

Application Of Funds

Gross Block 317.09 170.47

Less: Accum. Depreciation 89.26 69.11

Net Block 227.83 101.36

Capital Work in Progress 0.68 0.18

Investments 494.82 567.92

Inventories 534.21 597.76

Sundry Debtors 194.74 180.52

Cash and Bank Balance 974.18 1,419.39

Total Current Assets 1,703.13 2,197.67

Loans and Advances 3,503.59 4,131.15

Fixed Deposits 0 0.00

Total CA, Loans & Advances 5,206.72 6,328.82

Deffered Credit 0.00 0.00

Current Liabilities 809.67 423.67

Provisions 109.62 106.36

Total CL & Provisions 919.29 530.03

Net Current Assets 4,287.43 5,798.79

Minority Interest 0 0

Group Share in Joint Venture 0 0

Miscellaneous Expenses 0 0

Total Assets 5,010.76 6,468.25

Contingent Liabilities 920.56 16.31

Book Value (Rs) 28.94 27.28

- 28 -

Cash flow

Particular

Mar

'14

Mar

'13

Net Profit Before Tax 74.77 48.75

Net Cash From Operating Activities -85.44 5.34

Net Cash (used in)/from investing activities 240.5 69.7

Net Cash (used in)/from Financing activities -52.97 -74.98

Net (decrease)/increase In Cash and Cash Equivalents 102.09 0.06

Opening Cash & Cash Equivalents 113.82 113.75

Closing Cash & Cash Equivalents 215.91 113.82

Capital structure

Period Instrument Authorized Capital

Issued Capital

Paid Up

From To ( . Cr) ( . Cr) Shares Face Valu

e

2013 2012 Equity

Share

100 76.99 75896423 1

2012 2011 Equity

Share

100 76.99 78642153 1

2011 2010 Equity

Share

100 75.04 76784591 1

2010 2009 Equity

Share

100 74 52780143 1

2009 2008 Equity

Share

50 40 20000000 10

- 29 -

4. DECISION MAKING

The strategic decision making process is done at the corporate level by the board of directors. The policies

created by the top management are deployed at the branch level but the branch level decisions are in the head of branch manager. The grievance and the responsibility are handled by the branch manager. Branch

Manager has some power to recommend or to report the head office. The main strategic decision areas in JM Financial are:

Whether to open new branch or not

Strategic Decision making process of firm

Key feature strategic decision making in JM Financial

fully control by head office Mumbai

Tactical & operational decisions in JM Financial • Centralized decision

• Decision at head office, Mumbai • Implemented by the branch head at respective branch 19

- 30 -

OPPORTUNITIES The continued economic growth in the country has presented ongoing opportunities for financial

intermediaries to spread and benefit from the investment culture across the country. Following factors present specific opportunities across our businesses:

rowing corporate activities and related need for fund raising, re-organisation and acquisitions;

population with disposable income and investible surplus, change in attitude from wealth protection to

wealth creation and risk taking abilities of the youth;

- corporate are looking at expanding in overseas/domestic markets through merger & acquisitions;

high;

THREATS Despite great opportunities, there are significant factors presenting threats to our businesses viz.

investment demand and high inflation;

country leading to concerns of diffused focus on growth stimulus and infrastructure building;

aused by strong demand from ever increasing number of market participants;

and willingness of most players to deliver services at very low fees.

- 31 -

5. Financial Analysis

RATIOS

March 2014 March 2013

Structural Ratios

Long Term Debt Equity Ratio 0.00 0.00

Debt Equity Ratio 0.00 0.00

Interest Cover Ratio 838.27

1,676.13

Liquidity Ratios

Current Ratio 2.96 1.96

Quick Ratio 2.96 1.96

Profitability Ratios

Operating Profit Margin (%) 43.22 35.57

Net Profit Margin (%) 81.52

79.75

Return On Capital Employed (%) 4.59 3.01

Return On Net Worth (%) 4.38 2.76

Turnover Ratios

Inventory Turnover Ratio 0.00 0.00

Debtors Turnover Ratio 0.00 0.00

Asset Turnover Ratio 0.01 0.01

Investors Ratios

Earnings Per Share 0.94 0.60

Book Value 21.43 21.55

- 32 -

INTERPRETATION

Structural Ratios

Debt Equity Ratio

It is a long term solvency ratio that indicates the soundness of long-term financial policies of the

company. It shows the relation between the portion of assets provided by the stockholders and the portion of assets provided by creditors. It is calculated by dividing total liabilities by stockholder’s equity.

A less than 1 ratio indicates that the portion of assets provided by stockholders is greater than the

portion of assets provided by creditors and a greater than 1 ratio indicates that the portion of assets

provided by creditors is greater than the portion of assets provided by stockholders.

This ratio is decreasing in JM Financial but in both the year it is less than 1 hence it indicates that the portion of assets provided by stockholders is greater than the portion of assets provided by creditors.

Interest Coverage Ratio

The interest coverage ratio (ICR) is a measure of a company's ability to meet its interest payments.

Interest coverage ratio is equal to earnings before interest and taxes (EBIT) for a time period, often one year, divided by interest expenses for the same time period. It determines how easily a company

can pay interest expenses on outstanding debt.

The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by the company's interest expenses for the same period.

Interest coverage ratio = EBIT / Interest expenses

The lower the interest coverage ratio, the higher the company's debt burden and the greater the

possibility of bankruptcy or default. A higher ratio indicates a better financial health as it means that the company is more capable to meeting its interest obligations from operating earnings.

This ratio is increasing in JM Financial hence it indicates that the company is more capable of meeting its interest obligations from operating income.

- 33 -

Liquidity Ratios

Current Ratio

Current Ratio is a liquidity ratio that measures company's ability to pay its debt over the next 12

months or its business cycle. Current ratio is a financial ratio that measures whether or not a company has enough resources to pay its debt over the next business cycle (usually 12 months) by

comparing firm's current assets to its current liabilities. Current Ratio formula is:

Generally, a current ratio of 2:1 is considered to be acceptable.

The higher the current ratio is, the more capable the company is to pay its obligations. If current ratio

is below 1 (current liabilities exceed current assets), then the company may have problems paying its bills on time. However, low values do not indicate a critical problem but should concern the

management.

This ratio is increasing and it is more than 1 in JM Financial. It means that the company will be able to pay its obligations.

Quick Ratio

Quick Ratio is an indicator of company's short-term liquidity. It measures the ability to use its

quick assets (cash and cash equivalents, marketable securities and accounts receivable) to pay its current liabilities. Quick ratio formula is:

Ideally, quick ratio should be 1:1.

If quick ratio is higher, company may keep too much cash on hand or have a problem collecting its accounts receivable. Higher quick ratio is needed when the company has difficulty borrowing on

short-term notes. A quick ratio higher than 1:1 indicates that the business can meet its current financial obligations with the available quick funds on hand.

A quick ratio lower than 1:1 may indicate that the company relies too much on inventory or other

assets to pay its short-term liabilities.

This ratio is increasing and it is more than 1 in JM Financial. It means that the company can meet its current financial obligations with the available quick funds on hand.

Profitability Ratios

Operating Profit Margin (%)

Operating margin or operating profit margin measures what proportion of a company's revenue is left over, after deducting direct costs and overhead and before taxes and other indirect costs such as

interest. Operating margin formulas

- 34 -

A high or increasing operating margin is preferred because if the operating margin is increasing, the

company is earning more per dollar of sales.

This ratio is increasing in JM Financial hence it indicates that the company is earning more per dollar of sales. It shows the Good position for the company.

Net Profit Margin (%)

Net profit margin is a key financial indicator used to assess the profitability of a company.

Net profit margin formula is:

Net profit margin is an indicator of how efficient a company is and how well it controls its costs. A

low profit margin indicates a low margin of safety: higher risk that a decline in sales will erase profits and result in a net loss. The higher the margin is, the more effective the company is in

converting revenue into actual profit.

This ratio is increasing in JM Financial hence it indicates that the company will be more effective in converting its revenue into actual profit. It shows the Good position for the company.

Return on Capital Employed (%)

Return on capital employed (ROCE) is a measure of the returns that a business is achieving from the

capital employed, usually expressed in percentage terms. Capital employed equals a company's Equity plus Non-current liabilities (or Total Assets − Current Liabilities), in other words all the long-term funds used by the company. ROCE indicates the efficiency and profitability of a company's

capital investments.

ROCE = EBIT / Capital Employed= EBIT / (Equity + Non-current Liabilities) = EBIT / (Total Assets - Current Liabilities)

ROCE should always be higher than the rate at which the company borrows otherwise any increase

in borrowing will reduce shareholders' earnings, and vice versa; a good ROCE is one that is greater than the rate at which the company borrows.

This ratio is decreasing in JM Financial hence it indicates that the company’s earning is decreasing than their capital employed. It shows the Bad position for the company.

Return on Net worth (%)

Return on Equity (ROE) is an indicator of company's profitability by measuring how much profit the

company generates with the money invested by common stock owners. It is also known as Return on Net Worth. Return on Equity formula is:

- 35 -

This ratio is increasing in JM Financial hence it indicates that the company is generating profitability with the money invested by the stock owners. It shows the Good position for the company.

Turnover Ratios

Inventory Turnover Ratio

Inventory Turnover Ratio is one of the efficiency ratios and measures the number of times, on average, the inventory is sold and replaced during the fiscal year. Inventory Turnover Ratio formula

is:

A low inventory turnover ratio is a signal of inefficiency, since inventory usually has a rate of return

of zero. It also implies either poor sales or excess inventory. A low turnover rate can indicate poor liquidity, possible overstocking, and obsolescence, but it may also reflect a planned inventory build-up in the case of material shortages or in anticipation of rapidly rising prices.

A high inventory turnover ratio implies either strong sales or ineffective buying (the company buys

too often in small quantities, therefore the buying price is higher).A high inventory turnover ratio can indicate better liquidity, but it can also indicate a shortage or inadequate inventory levels, which may

lead to a loss in business.

At JM Financial, this ratio is zero. It indicated the inefficiency. It also implies that the company has poor sales or excess inventory.

Debtors Turnover Ratio

Receivables Turnover Ratio is one of the efficiency ratios and measures the number of times

receivables are collected, on average, during the fiscal year. Receivables Turnover Ratioformula is:

A high receivables turnover ratio implies either that the company operates on a cash basis or that its extension of credit and collection of accounts receivable are efficient. Also, a high ratio reflects a

short lapse of time between sales and the collection of cash, while a low number means collection takes longer.

The lower the ratio is the longer receivables are being held and the risk to not be collected increases.

A low receivables turnover ratio implies that the company should re-assess its credit policies in order to ensure the timely collection of credit sales that is not earning interest for the firm.

This ratio is increasing in JM Financial hence it indicates that the company will be able to collect the cash on its sales within a short period. It shows the Good position for the company.

- 36 -

Asset Turnover Ratio

Asset turnover (total asset turnover) is a financial ratio that measures the efficiency of a company's use of its assets to product sales. It is a measure of how efficiently management is using the assets at

its disposal to promote sales. The ratio helps to measure the productivity of a company's assets.

Formula:

Asset turnover = Revenue / Average total assets

Or in days = 365 / Asset turnover

There is no set number that represents a good total asset turnover value because every industry has varying business models. It also depends on the proportion of labour costs in relation to the capital

required, i.e. whether the process is labour intensive or capital intensive.

The higher the number, The better. If there is a low turnover, it may be an indication that the business should either utilize its assets in a more efficient manner or sell them.

At JM Financial, this ratio is same for both the years but it is very low. Hence, it shows the Bad position for the company.

Investors Ratios

Earnings Per Share

Earnings per share (EPS) are the portion of the company’s distributable profit which is allocated to

each outstanding equity share (common share). Earnings per share are a very good indicator of the profitability of any organization, and it is one of the most widely used measures of profitability.

The EPS is calculated by dividing net profit after taxes and preference dividends by the number of

outstanding equity shares. This can be expressed in terms of the following formula:

Earnings per share = (Net Profit after Taxes – Preference Dividends) / Number of Equity Shares

This ratio is increasing in JM Financial hence it indicates that the company’s earnings per share are increasing.

Book Value

Book value refers to the total amount a company would be worth if it liquidated its assets and paid

back all its liabilities.

- 37 -

6. Tasks and Activities performed at the organisation

Date Activities Performed

09/06/2014 Filing the employment forms and make a letter cover

10/06/2014 Filing the employment forms and prepares a letter cover. Filing the TDS Letters

11/06/2014 Visit the agents house at Nadiad

13/06/2014 Fill The forms

14/06/2014 Visit the agents house at Nadiad

16/06/2014 Visit the agents house at Anand

18/06/2014 Data Entry

20/06/2014 Meet other agents Scan the documents

23/06/2014 Visit the agents house at Baroda

24/06/2014 Data Entry

25/06/2014 Data Entry Print for the documents

26/06/2014 Data Entry

01/07/2014 Call the clients for confirmation of forms

02/07/2014 Data Entry

- 38 -

7. My learning from the organisation

While working in the organisation, I have learned many things which are mentioned as below.

I came to know about variety of investment options available to any individual

I have learned the basic about Equity and Mutual Funds

I have learned to make data entry

I also learned how to approach to the client while visiting the agents house

I also learned how to communicate with people in the real professional world

- 39 -

A Project report

On

“A STUDY ON CUSTOMER PERCEPTION TOWARDS MUTUAL FUND“

For

“JM FINANCIAL “

BARODA

Submitted to

FACULTY OF MANAGEMENT STUDIES (FMS)

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)

CHANGA

Presented By

Vishal Solanki

13MBA110

SEMESTER-III, SECOND YEAR

M.B.A. PROGRAMME

PART: 2 PROJECT STUDY

REASERCH PROPOSAL

- 40 -

9. INTRODUCTIONS

A Mutual fund is a trust that pools the savings of a number of investors’ who share a common financial goal. The money collected from investors’ is invested in capital market instrument such as shares, debentures and

other securities. The income earned through these investments and the capital appreciations realized are shared by its unit’s holder in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment to the common man as it offers an opportunity, to invest in a diversified,

professionally managed basket of securities at relatively low cost.i

Mutual Fund pools the money of people with certain investment goals. The money invested in various securities depending on the objectives of the mutual fund scheme and the profits (or loss) are shared among investors’ in proportion to their investment. Investments in securities are spread across a wide cross-section

of industries and sectors. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors’ in accordance

with quantum of money invested by them. Investors’ of mutual funds are known as unit holders. The profits or losses are shared by the investors’ in proportion to their investment. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A

mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public.ii

Consumer behaviour is an important area of research studies. To evaluate the prospects of any kind of product irrespective of its nature, one should be aware of the behaviour of the consumer. If we look into the

financial market in general, the research studies have been conducted based on statistical observation, technical analysis and fundamental analysis. Investor's expectation is a very important factor in this regard that needs to be analysed by all alternative investment avenues. The success of any mutual fund, a popular

means of investment, depends on how effectively it has been able to meet the investor's expectation. The present study focuses on measuring the investors' expectation and their preference. It also attempts to gauge

the factors that they take into consideration before making any investment in mutual fund as well as the awareness level among individual investors regarding mutual fund investment.iii

______________________________

1http://rspublication.com/ijrm/march%2012/6.pdf

1http://www.ijemr.net/Feb2014Issue/AStudyOnInvestorsBehaviorTowardsMutualFundsInRohtakHaryana%

28224-228%29.pdf

1http://web.a.ebscohost.com/ehost/detail?vid=3&sid=62c9f5f7-5eb3-4f50-a682-

b71880f0ed3c%40sessionmgr4003&hid=4206&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=60102399

- 41 -

LITERATURE REVIEW

Singh and Jha (2009) conducted a study on awareness & acceptability of mutual funds and found that

consumers basically prefer mutual fund due to return potential, liquidity and safety and they were not totally aware about the systematic investment plan. The invertors’ will also consider various factors before

investing in mutual fund. Desigan et al (2006) conducted a study on women investors” perception towards investment and found that

women investors” basically are indecisive in investing in mutual funds due to various reasons like lack of knowledge about the investment protection and their various investment procedures, market fluctuations,

various risks associated with investment, assessment of investment and redressed of grievances regarding their various investment related problems. Savings is a habit specially embodied into women. Even in the past, when women mainly depended on their spouses’ income, they used to save to meet emergencies as well

as for future activities. In those days, women did not have any awareness about various investment outlets. But as time passed, the scenario has totally changed.

Ramamurthy and Reddy (2005) conducted a study to analyze recent trends in the mutual fund industry and draw a conclusion that the main benefits for small investors’ due to efficient management, diversification of

investment, easy administration, nice return potential, liquidity, transparency, flexibility, affordability, wide range of choices and a proper regulation governed by SEBI. The study also analyzed about recent trends in

mutual fund industry like various exit and entry policies of mutual fund companies, various schemes related to real estate, commodity, bullion and precious metals, entering of banking sector in mutual fund, buying and selling of mutual funds through online.

Anand and Murugaiah (2004) had studied various strategic issues related to the marketing of financial

services. They found that recently this type of industry requires new strategies to survive and for operation. For surviving they have to adopt new marketing strategies and tactics that enable them to capture maximum opportunities with the lowest risks in order to enable them to survive and meet the competition from various

market players globally.

Objective of the study

The setting of objective is the corner stone of a systematic study. The study will be fruitful one when

the basis laid down is a concrete one they represent the desired solution to the problem and help in proper utilization of opportunities.

To find Preference of investor about different investment avenues.

To study and analyse the impact of various demographic factors on investors” attitude towards

mutual fund.

To study about the factors responsible for the selection of mutual funds as an investment option.

To study about satisfaction level of customer who invest in mutual fund.

- 42 -

10. RESEARCH

10.1 Hypothesis

H1: There is no association between age and the attitude towards mutual funds.

H2: There is no association between income and the attitude towards mutual funds.

H3: There is no association between educational qualification and the attitude towards mutual funds.

H4: There is no association between occupation and the attitude towards mutual funds.

10.2 Research Gap

No research work has been done in the Indian context especially in the state of Gujarat at JM Financial,

Baroda.

10.3 Research Design

Type of research

Exploratory research studies

Descriptive research studies

Descriptive research will be followed by exploratory research in order to customer’s perception towards mutual fund

This report is based on primary data, however primary data collection has given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it

helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top

management to assist them for the better decision making both day to day decision and critical ones.

- 43 -

10. Data Sources and Data Collection Method

10.1 Sources of data

Primary data:

Questionnaire Telephonic call

Company prospectus & literature

Secondary data:

Internet web site Company Database

References given by Relationship Manager

10.2 SAMPLING PLAN

Sampling:

For the report customer perception towards mutual fund at JM financial is selected to do market

research. 100% coverage is difficult within the limited period of time. Hence sampling survey method is adopted for the purpose of the study.

Population:

Investors and non investors of JM financial in Baroda city.

Sampling procedure:

From large number of Investors and non investors, sample lot has been randomly picked up.

Sampling frame : JM FINANCIAL LTD. Sampling size : 30 Sampling unit : JM FINANCIAL, BARODA

- 44 -

REASERCH MODEL

• Customer’s Preference towards Mutual FundDEPENDENT

VARIABLE

• Age

• Education Qualification

• Occupation

• Income

INDEPENDENT VARIABLE

- 45 -

11. DATA ANALYSIS, FINDINGS AND INTERPRETATION

1. Gender

Interpretation:-

In above chart and table shows that 63% of male are interested to invest in mutual fund and rest of 37% of female are interested in mutual fund. So overall male member invest more in mutual fund compare to female.

2. Age

Options Respondent percentage

18 to 29 9 30%

30 to 39 10 33%

40 to 49 6 20%

50 to above 5 17%

63%

37%

Gender

male female

Options Respondent percentage

Male 19 63%

Female 11 37%

- 46 -

Interpretation:-

The above data convey that there is more no. of people of age from 30 to 39 who invest money in mutual

fund. And people whose age is 50 and above is less interested to invest in mutual fund.

3. What investment opportunities you prefer to invest your saving?

Options Respondent percentage

Bank Deposit 0 0%

Mutual fund 30 100%

Debentures 0 0%

Insurance 0 0%

30%

33%

20%

17%

AGE

18-29 30-39 40-49 50 and above

0%

100%

0%0%

IOPIS

Bank Deposit Mutual fund Debentures Insurance

- 47 -

Interpretation:-

Above research shows that all 30 people are invest in mutual fund.

4. How much amount do you save yearly?

Options Respond

ent

percentage

0 to 50000 14 47%

50000 to 100000 13 43%

100000 to 150000 3 10%

150000 to above 0 0%

Interpretation:-

Above research shows that highest 47% of people saves up to Rs.50000 yearly.

5. Do you invest in mutual fund?

Options Respondent Percentage

Yes 30 100%

No 0 0%

47%

43%

10%

0%

ASY

0-50000

50000-100000

100000-150000

150000 and above

- 48 -

Interpretation:-

All 30 respondents are investing in mutual fund.

6. What criteria you keep in your mind while selecting any investment opportunity?

Options Respondent percentage

Security 12 40

Liquidity 9 30

Maturity 6 20

Tax benefit 3 10

100%

0%

IMF

Yes No

- 49 -

Interpretation:-

Above graph shows that 40% of people are investing in mutual fund for security. And 10% of people who are for investing in mutual fund for tax benefit.

7. Which type of fund would you like to invest?

Options Respondent percentage

Equity fund 21 70%

Debt fund 9 30%

Hybrid fund 0 0%

40%

30%

20%

10%

CSIO

Security Liquidity Maturity Tax Benefit

70%

30%

0%

TFI

Equity Fund Debt fund Hybrid fund

- 50 -

Interpretation:-

Above graph shows that out of 30 respondent 21 are invest in equity fund and rest of 9 people are invest in debt fund and no one invest in hybrid fund.

8. Which structure of scheme do you prefer in mutual fund?

Options Respondent percentage

Open Ended 21 70%

Close Ended 9 30%

Interpretation:-

Above chart shows that 21 responded are use open ended structure scheme. and rest of use close ended structure scheme.

9. When you invest in mutual fund which mode of investment will you prefer?

Options Respondent percentage

Lump sum investment 4 13%

Systematic investment plan 26 87%

47%

53%

SSMF

Open ended Close ended

- 51 -

Interpretation:-

Above chart shows that 87% people are use systematic investment plan. And rest 13% people use lump sum investment.

10. How long would you like to hold your mutual fund investment?

Options Respondent percentage

Less than 1 year 2 6%

1 to 3 year 23 77%

4 to 6 year 5 17%

7 to above 0 0%

Interpretation:-

Above chart shows that 77% of people who invest their mutual for 1 to 3 year 17% people are invest for 4 to

6 year and 6% of people are invest for less than 1 year.

13%

87%

IMFI

Lump sum investment Systematic investment plan

6%

77%

17%

0%

HMFI

Less than 1 year 1 to 3 year 4 to 6 year 7 to above

- 52 -

11. How would you rate the risk associated with mutual fund?

Options Respondent percentage

Low 15 50%

Moderate 13 43%

High 2 7%

Interpretation:-

Above chart shows that50% people says that there are low risk in mutual fund and 7% are says that there are less risk in mutual fund.

12. How would you rate mutual fund on the basis of return?

Options Respondent percentage

Highly satisfied 7 23%

Satisfied 18 60%

Average 5 17%

Dissatisfied 0 0%

50%

43%

7%

RRAMF

Low Moderate High

- 53 -

Interpretation:-

Above chart shows that 60% of people are highly satisfied in term of return in mutual fund and 17% are average in term of mutual fund.

13. Which option would you prefer in mutual fund?

Options Respondent percentage

Dividend payout 18 60%

Dividend reinvestment 3 10%

Growth 9 30%

Interpretation:-

Above chart shows that 60% of people who preferred dividend payout in mutual fund and 30% of people are

preferred growth in M.F. and rest of 10% are preferred dividend reinvestment in mutual fund.

23%

60%

17%

0%

RMFR

Highly satisfied satisfied Average Dissatisfactory

60%10%

30%

OPMF

Dividend payout Dividend reinvestment Growth

- 54 -

14. Your overall experience with mutual fund investing?

Options Respondent percentage

Highly satisfied 10 33%

Satisfied 18 60%

Average 2 7%

Dissatisfied 0 0%

Interpretation:-

All research shows that 60% of people are satisfied in investing in mutual fund. 33% of people are highly satisfied. And 7% of people are who says that it is average.

Findings

63% of male are interested to invest in mutual fund and rest of 37% of female are interested in

mutual fund. So overall male member invest more in mutual fund compare to female.

People who age from 30 to 39 compare to 50 and above are higher investing in mutual fund.

Liquidity fund customers are satisfied with the mutual fund investment because they can easily change the funds.

Growth fund customers are satisfied with the mutual fund investment because mutual fund gives the time to time growth for that investment.

Regular fund customers are not satisfied with mutual fund investment because they don’t receive the regular return for that particular investment.

33%

60%

7%

0%

EXEMFI

Highly satisfied satisfied Average Dissatisfactory

- 55 -

12. Conclusion

Mutual fund is the ideal investment vehicle for today’s complex and modern financial scenario. Market

for equity shares, bonds and other fixed income instruments have become matured and information driven. Prices changes in these assets are driven by global event occurring in faraway places. The typical

individual is unlikely to have skills, knowledge, inclination and time to keep track of events, understand their implication and act speedily.

A mutual fund is answer to these entire situation it appoints professionally qualified and experienced staff manages each of these function on a full time basis. Mutual fund provides varieties of schemes for

different kind of customer to suit their goals. Mutual fund have open-ended and close-ended schemes, children’s plan, diversified equity fund, balanced fund, liquid plan, income fund, short term fund, sector

fund and pension plan. So the future of mutual fund in India is bright, because it meets investor’s confidence.

- 56 -

References

http://economictimes.indiatimes.com/jm-financial-ltd/infocompanyhistory/companyid-12633.cms

http://www.moneycontrol.com/india/stockpricequote/financeinvestments/jmfinancial/JMF

http://www.moneycontrol.com/competition/jmfinancial/comparison/JMF#JMF

http://www.moneycontrol.com/financials/jmfinancial/ratios/JMF#JMF

http://www.jmfinancialservices.in/jmfs/FAQs.aspx

Other References

Company Broachers

- 57 -

QUESTIONNAIRE

Respected Madam/Sir,

I, Vishal Solanki pursuing Master of Business Administration from Indukaka Ipcowala Institute of Management. I am doing my research report on “A Study on customer perception towards

Mutual fund.” as a part of my course curriculum. I will be more obliged if you could respond to the below mentioned questionnaire. The information provided by you will be kept confidential and used

for academic purpose only.

GENERAL INFORMATION

Name of Customer: _________________________________________________________

Gender: Male Female

Age: 18 to 29 30 to 39 40 to 49 50 to above

Address: __________________________________________________________

___________________________________________________________________________

1) What investment opportunities you prefer to invest your saving?

Bank Deposit Mutual fund

Debentures Insurance

2) How much amount do you save yearly?

0 to 50000 50000 to 100000

100000 to 150000 150000 to above

3) Do you invest in mutual fund?

Yes No

4) What criteria you keep in your mind while selecting any investment opportunity?

Security Liquidity

Maturity Tax benefit

5) Which type of fund would you like to invest?

Equity fund Debt fund Hybrid fund

6) Which structure of scheme do you prefer in mutual fund?

Open Ended Close Ended

7) When you invest in mutual fund which mode of investment will you prefer?

Lump sum investment Systematic investment plan

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8) How long would you like to hold your mutual fund investment?

Less than 1 year 1 to 3 year

4 to 6 year 7 to above

9) How would you rate the risk associated with mutual fund?

Low Moderate High

10) How would you rate mutual fund on the basis of return?

Highly satisfied satisfied

Average Dissatisfactory

11) Which option would you prefer in mutual fund?

Dividend payout Dividend reinvestment Growth

12) Your overall experience with mutual fund investing?

Highly satisfied satisfied

Average Dissatisfactory