Weekly Report 1

A study on investors perception towards mutual funds with reference to Birla Sunlife
AMC

Faculty of Management Studies - Institute of Rural Management

Summer Internship undertaken at

Birla Sunlife AMC(BSLAMC),Jaipur

Corporate Guide:

Faculty Guide :

Mr. Saurabh Tiwari

Dr. Priyanka Mathur

(Regional Head)
SUBMITTED BY:
Kanika Agarwal
3114

Introduction
Investment can be defined as an item of value purchased for income or capital appreciation. Investments
are made to achieve a specific objective and savings are made to meet an unforeseen event.
There are various avenues of investments in accordance with
individual preferences. Investments are made in different asset classes depending on an individuals risk
and return characteristics Investment choices are physical assets and financial assets.
Gold and Real Estates are examples of physical assets, which have
a physical form to them. There is a strong preference for these assets, as these assets can be purchased
with cash and held for a long term. The obvious disadvantages with physical assets are the risks of loss
and theft, lower levels of return; illiquid secondary markets; and adhoc valuations and transactions.
Financial assets are securities, which are certificates embodying a financial contract between parties.
Bonds, Equity shares, Deposits and Insurance policies are some of the examples of financial assets. In
financial assets investors only hold the proof of their investments in the form of a certificate or
account.These products are usually liquid, transferable and in most cases, storedelectronically with high
degree of safety. But a minimum amount of cash is always kept in hand for transactions and
contingencies. To face the contingencies and unexpected events the insurance came into existence.
Another avenue of investment is mutual funds. It is created when investors put their money together. It is
therefore a pool of the investors funds. The most important characteristics of a mutual fund is that the
contributors and the beneficiaries of the fund are the same class of people, namely the investors. The term
mutual means that investors contribute to the pool, and also benefit from the pool. There are no other
claimants to the funds. The pool of funds held mutually by investors is the mutual fund.
A mutual fund pools the money of people with similar investment goals. The money in turn is 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 investments. Mutual fund schemes are usually open-ended
(perpetually open for investments and redemptions) or closed end (with a fixed term). A mutual fund
scheme issues units that are normally priced at Rs.10 during the initial offer. Thus, the number of units
you own as against the total number of units issued by the mutual fund scheme determines your share in
the profits or loss of a scheme. In the case of open-end schemes, units can be purchased from or sold back
to the fund at a Net Asset Value (NAV) based price on all business days. The NAV is the actual value of a
unit of the fund on a given day. Thus, when you invest in a mutual fund scheme, you normally get an
account statement mentioning the number of units that have been allotted to you and the NAV based price
at which the units have been allotted. The account statement is similar to your bank statement.
Mutual funds invest basically in three types of asset classes:
Stocks:
Stocks represent ownership or equity in a company, popularly known as shares.
Bonds:
These represent debt from companies, financial institutions or Government agencies.
Money market instruments:
These include short-term debt instruments such as treasury bills, certificate of deposits and inter-bank call
money. A mutual funds business is to invest the funds thus collected, according to the wishes of the
investors who created the pool. In many markets these wishes are articulated as investment mandates.

Objective of the study

To study the investors perception towards mutual funds.

To study the factors considered by the investors and those which ultimately influence him
while investing.
To determine the type of mutual fund investor prefers the most.

Company Profile
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of Birla
Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life
Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla Group s
experience in the Indian market and SunLifes global experience.
Since its inception in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading
Mutual Funds managing assets of a large investor base. The fund offers a range of investment
options, which include diversified and sector specific equity schemes, fund of fund schemes,
hybrid and monthly income funds, a wide range of debt and treasury products and offshore
funds.
With a proven track record of over 14 years, Birla Sun Life Mutual Fund has been acatalyst
towards the growth of the private sector asset management business.

Mission
To consistently pursue investor's wealth optimization by:

Achieving superior and consistent investment results.

Creating a conducive environment to hone and retain talent.
Providing customer delight.
Institutionalizing system-approach in all aspects of functioning.
Upholding highest standards of ethical values at all times

Vision
To be the most trusted name in investment and wealth management, to be the preferred employer
in the industry and to be a catalyst for growth and excellence of the asset management business
in India.

Values

Integrity
Commitment
Passion
Seamlessness
Speed

Business Strategy
Birla Sun Life Mutual Fund follows a long-term, fundamental research based approach to
investment. The approach is to identify companies, which have excellent credit-worthiness and
strong fundamentals. The fundamentals include the quality of the company's management,
sustainability of its business model and its competitive position, amongst other factors. Birla Sun
Life Asset Management Company (BSLAMC) has one of the largest team of research analysts in
the industry, dedicated to tracking down the best companies to invest in .BSLAMC will always
strive to provide transparent, ethical and research-based investments and wealth management
services.

Product Offerings
Birla Sun Life Mutual Fund offers a range of investment options, which include diversified and
sector specific equity schemes, fund-of-fund schemes, hybrid and monthly income funds, a wide
range of debt and treasury products and offshore funds. BSLAMC also provides Private Wealth
Management services.

MARKRTING DEPARTMENT
Marketing is a comprehensive term & it includes all resources & set of activities necessary to
direct & facilitate the flow of goods & services from producer to consumer in the process of
distribution. Marketing is the human activity directed at satisfying needs & wants through
exchange process. Marketing is the process of planning, pricing, distribution of goods, ideas;
services create exchanges that satisfy individual & organizational goals.

PRODUCT PLANNING
A product planning is a company plan for marketing its products. Product planning means
planning for the product that is to decide what type of products to be produced or what needs or
requirements the product should satisfy. In Birla Sun Life Mutual Fund, product planning is done very
carefully. They first contact Advisors & ask, for the what type of product customers want means

Debt based, Equity Based or Low risk Product etc then they prepare few samples & give to
Advisors. As per the suggestions & Response of customers they prepare the new Schemes

STRATEGIES RELATED PRODUCT

In developing a marketing strategy of individual products, the seller has to comfort many
decision. There are four elements related to the products. The brief study of these elements will
complete the concept. These four elements are:
1. Branding
2. Packing & labeling
3. Promotion
4. After sales service
First one is Brand. Branding is the art and corner stone of marketing. A brand identifies the seller
or marketing. It can a name, trademark, logo or other symbol under trademark law, the seller is
granted exclusive right to the use of brand name.
Second element is packing and labeling. Many marketers are of view that packing is a fifth P
along with price, product, place and promotion. Packing includes the activities of designing and
producing the container or wrapper for product while the label identifies the product. Birla Sun
Life Mutual Fund also gives much important to the packing and labeling.
Next is Promotion. Today promotion is one of the most important tools for stay in competition.
Birla give full attention on this segment because Mutual Fund Industry is totally service based
company and required high promotion to attract the investors. It also distributes Seasonal Gifts
to their Advisor for promoting their product and motivates them. Example: Give free Umbrella in
Monsoon under Monsoon Dhamaka Schemes to attract the advisor for promote BIRLAs
products.
In this business the actual work of company start after sales of product i.e. After Sales Services.
After Sales Services include how company response to their Clint. BIRLA is known for their
After Sales Services.

Birla send monthly valuation report of their Clint through currier.

Birla solved any Query within 48 hours.
Birla also continues suggest good schemes to their current Clint.
Birla give Statement of their (Clint) investment free of costs.

PERSONNEL (HR) DEPARTMENT

Personnel management is the most important area of any business organization. The main aim of
personnel management is to manage the personnel at work. It is concern with employees both as

individual as well as group. The aim being to get better results with their collaboration and
activity involvement in the organization activity. Personnel management means quite simply the
task of dealing with human relationship within an organization. Personnel management is that
phase of management which deals with the effective control and use of manpower as
distinguished from other sources of power.

ORGANISATION STRUCTURE
Organization is a group of people working together co-operating under authority, towards
achieving benefit the participants and the organization. Every organization has goals
and objectives. In Birla Sun Life Mutual Fund, there is a separate personnel department
for achievement of goals. Personnel management is a most important part in an organization. All
the functions related with personnel department. Personnel manager has got higher status in the
organization.

RECRUITMENT
Recruitment is the process of selection for prospective employees simulating them to apply for
job in the organization. In other words it is linking activity bearing to gather with jobs, selection
jobs. Recruitment makes it possible to acquire the number and type of people necessary to ensure
the continued operation of the organization. Recruitment is a process of searching for prospective
employee and stimulating encouraging them to apply for jobs in an organization.
There are two sources of requirement:
1.

Internal Sources
Promotion
Transfer
Demotion

2.

External Sources
Advertisement
Employment
On Campus Requirement
Employee Recommendation

In Birla Sun Life Mutual Fund they are using internal sources as well as external sources. Their
policy for external sources is such that first they give advertisement in the newspaper and they
have also contact with employment exchange through these source first of all collect application,
separated and then after appropriate candidates are called for the interview.

SELECTION
After creating if application of required number of employees secured through different sources
of recruitment the selection process begins. The main purpose of selection process of selection
process is it find the right man for each job. The efficiency and profitability of the concern

depends mainly on proper selection of the personnel. Company select employees through
commercial made of three numbers. One is the work manager, second is of manager and the third
is the head department in which company exists.

Who Can Invest

Resident Indians

Non-resident Indians (NRI)

Persons of Indian Origin (POI)

Public Sector Undertakings

Private Sector Undertakings

Parents/Guardians on behalf of minors

Hindu Undivided Family

Sole Proprietorship Firms

Partnership Firms

Cooperative Societies

Charitable or Religious Trusts

Trustee, AMC or Sponsor of their associates

Endowment or Registered Societies

Army/Air Force/Navy/Para-Military funds and other eligible institutions

Scientific and/or industrial research organizations

And other associations, institutions, bodies, etc., authorized to invest in mutual funds

Schemes Of Birla Sunlife

Equity Schemes

Debt Schemes

Birla Sun Life 95 Fund

Birla Sun Life Cash Plus

Birla Sun Life Frontline Equity Fund

Birla Sun Life Cash Manager

Birla Sun Life Top 100 Fund

Birla Sun Life Savings Fund

Birla Sun Life Equity Fund

Birla Sun Life Long Term Advantage Fund
Birla Sun Life MNC Fund

Birla Sun Life Treasury Optimizer Plan

Birla Sun Life Dynamic Bond Fund
Birla Sun Life Short Term Opportunities
Fund
Birla Sun Life Medium Term Plan
Birla Sun Life Short Term Fund
Birla Sun Life Income Plus
Birla Sun Life Floating Rate Fund - Short
Term Plan
Birla Sun Life Floating Rate Fund - Long
Term Plan

Birla Sun Life Dividend Yield Plus

Birla Sun Life Midcap Fund
Birla Sun Life Small & Midcap Fund
Birla Sun Life Advantage Fund
Birla Sun Life India GenNext Fund
Birla Sun Life Buy India Fund

Birla Sun Life Gilt Plus - Liquid Plan

Birla Sun Life Banking and Financial Services Birla Sun Life Gilt Plus - PF Plan
Fund
Birla Sun Life Infrastructure Fund
Birla Sun Life Gilt Plus - Regular Plan
Birla Sun Life Pure Value Fund

Birla Sun Life Government Securities Fund

- Long Term Plan

Birla Sun Life India Reforms Fund

Birla Sun Life Government Securities Fund

- Short Term Plan

Birla Sun Life New Millennium Fund

Birla Sun Life Enhanced Arbitrage Fund

Birla Sun Life India Opportunities Fund

Birla Sun Life Active Debt Multi Manager

FoF Scheme

Birla Sun Life Special Situations Fund

Birla Sun Life Dynamic Asset Allocation
Fund
Birla Sun Life International Equity Fund
Birla Sun Life Commodity Equities Fund
Birla Sun Life Global Commodities Fund
Birla Sun Life Global Real Estate Fund
Birla Sun Life Latin America Equity Fund
Birla Sun Life Index Fund
Birla Sun Life Gold ETF
Birla Sun Life Gold Fund
Birla Sun Life Asset Allocation Fund

Birla Sun Life Tax Relief 96

Birla Sun Life Tax Plan
Birla Sun Life Tax Savings Fund

Tax Saving SchemeKey Information

Mutual Fund

Birla Sun Life Mutual Fund

Setup Date

Dec-23-1994

Incorporation Date

Sep-05-1994

Sponsor

Aditya Birla Financial Services Private Limited

Trustee

Birla Sun Life Trustee Company Private Limited

Chairman

Mr. Kumar Mangalam Birla

CEO / MD

Mr. A. Balasubramanian

CIO

N.A

Compliance Officer

Mr. Rajiv Joshi

Investor Service Officer

Ms. Keerti Gupta

Assets Managed

Rs. 136560.90 crore (Dec-31-2016)

SWOC Analysis
Strength

Strong financial position

Quality products
Large networks
Strong brand name Aditya Birla
Overall market share 10% and above
Ranked no 5 among mutual funds
25 million policies sold so far

Weakness
Less awarness of mutual fund products
Less advertising
No penetration in rural markets
No plan for low income group
Advisory fee is higher than other companies

Opprtunities
Establishing new branches
Company can penetrate into rural markets
Growth of indian stock market can boost the business
Rapid integration with global markets
77% of market potential
Rural market hold a wealth of opportunity to be explored

Challenges
Frequent changes by the regulator(SEBI)
Less penetration in rural areas
Cut-to-cut market
Retail participation
Lack of awareness among general public about mutual funds
Lack of financial literacy