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TABLE OF CONTENTS

1) Introduction
2) Company Profile
 Origin
 Recent Acheivements
 Mission and Vision
 Products
 Organisation Structure
3) Mutual Funds
 Meaning
 Benefits
 Types
4) SWOT Analysis
5) Marketing Strategies
 7P’s of Service Marketing
 The levels of Mutual Fund Product
6) Internship Plan
7) Profile of the Work Done
8) Research Methodology
 Research Design
 Sources of Data
 Sampling
i) Sampling Technique
ii) Sample si*ze
 Methods of Data Collection
 Limitations
9) Data Analysis and Interpretation
10) Findings
11) Conclusion
12) Suggestions
13) References
14) Annexure
 Questionnaires
 CERTIFICATE OF INTERNSHIP

ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to Bajaj Capital Ltd. for providing me with an

opportunity to do my training at their esteemed organization.

I am thankful to all the companies with which I communicated with reference to this project.
I am thankful to all the staff members of Bajaj Capital Ltd. , my parents and all my teachers
who gave me their valuable guidance, encouragement, and support in completing this project.

Muskan Jaiswal
 CHAPTER 1

INTRODUCTION

PROFILE OF THE COMPANY

1.ORIGIN

Bajaj Capitals Limited was incorporated in 1964 at New Delhi. It started as an investment
consultancy company rendering advice for profitable investments in Company Deposits and Shares.
Since then the organizations has grown by leaps and bounds, at present they have a network of 65
self-owned offices and thousands of Broker Associates spread across the country enable them to be
one of the India's largest retail fund mobiliser for debit instruments. And in 34years , they have also
became India’s best known corporate fund raiser in the shape of fixed
deposits/debentures/bonds/units/mutual funds/gift-hedged securities, equity shares/interoperate
corporate deposits etc. They are also providing Car finance, Insurance-both life and general,
specialized NRI services, Financial Planning etc. services for our clients. They added a new dimension
to the industrial finance in India in each in early 60's by innovating new financial instrument:
Company Deposits.

About 5,000 prospective investors daily visit our various offices throughout the country to
seek our expert investment guidance. Bajaj Capital started its operations from New Delhi. After its
success in New Delhi, it extended its activities to other metropolitan cities of India i.e. Bombay,
Calcutta and Madras in order to cater to the needs of lakhs of investors and thousands of corporate
clients. After its success in these metropolitan cities, Bajaj Capital opened offices in other important
cities of India like Bangalore, Ahmedabad, Hyderabad, Luckhnow, Chandigarh ,Ghaziabad, Noida,
Faridabad, etc.. In addition to its offices at these places Bajaj Capital has about 8,000 representatives
Broker Associates in all the nooks and corners of India. In order to help its non-resident Indian
investor clients, to make investments in corporate and other securities in India, Bajaj Capital has its
associates in UK, i.e. Bajaj Capital (UK) Limited. Bajaj Capital has NRI clients in USA, UK, West
Germany, Italy, Netherland, Denmark, Australia, Canada, France, New Zealand, Mauritius, Thailand,
Singapore, UAE, Kuwait, Dubai, Egypt, Saudi Arabia, etc. and is providing them a complete range of
services. Now after34 years of its working, Bajaj Capital is geographically present in all the nook s
and corners of India and also has presence in important countries of world through its Broker
Associates and Clients.

2. RECENT ACHEIVEMENTS

Bajaj Capital has contributed to the growth of the Indian Capital

Market at every step. In 1965, we were the first to innovate the

Companies Fixed Deposit. Today, we are playing an active role in

the growth of the Indian Mutual Fund industry. We are also working
closely with private insurance companies to deepen India's insurance market. Here is a glimpse of
our journey through the years.

1964: Bajaj Capital sets up its first Investment Centre™ in New Delhi to guide individual investors
on where, when and how to invest. India's first Mutual Fund, Unit Trust of India (UTI) is incorporated
in the same year.

1965: Bajaj Capital is incorporated as a Company. In the same year, the company introduces an
innovative financial instrument – the Company Fixed Deposit. EIL Ltd. (Oberoi Hotels, then known as
Associated Hotels of India Ltd becomes the first company to raise resources through Company Fixed
Deposits.

1966: Bajaj Capital expands its product range to include all UTI schemes and Government
saving schemes in addition to Company Fixed Deposits.

1969: Bajaj Capital manages its first Equity issue (through an associate company) of Grauer Wells
India Ltd.; right from drafting the prospectus to marketing the issue.

1975: Bajaj Capital starts offering 'need-based' investment advice to investors, which would later
be known as 'Financial Planning' in the investment world.

1981: SAIL becomes the first government company to accept deposits, followed by IOC, BHEL,
BPCL, HPCL and others; thus opening the floodgates for growth of retail investment market in India.
Bajaj Capital plays an active role in all the schemes as 'Principal Brokers'

1986: Public Sector Undertakings (PSUs) begin making public issues of bonds MTNL, NHPC, IRFC
offer a series of Bond Issues. Bajaj Capital is among the top ranks of resource mobilisers.

1987: SBI leads the launch of Public Sector Mutual Funds in India. Bajaj Capital plays a significant
role in fund mobilisation for all these players.

1991: SBI issues India Development Bonds for NRIs. Bajaj Capital becomes the top mobiliser with
5collections of over US $20 million.

1993: The first private sector Mu0tual Fund – Kothari Pioneer – is launched, followed by Birla and
Alliance in the following years. Bajaj Capital plays an active role and is ranked among the top
mobilisers for all these schemes.

1995: IDBI and ICICI begin issuing their series of Bonds for retail investors. Bajaj Capital is the co-
manager in all these offerings and consistently ranks among the top five mobilisers on an all-India
basis.

1997: Private sector players lead the revival of Mutual Funds in India through Open-ended Debt
schemes. Bajaj Capital consolidates its position as India's largest retail distributor of Mutual Funds.

1999: Bajaj Capital begins marketing Life and General Insurance products of LIC and GIC (through
associate firms) in anticipation of opening up of the Insurance Sector. Bajaj Capital achieves the
milestone of becoming the top 'Pension Scheme' seller in India and launches marketing of GIC's
Health Insurance schemes.

2000: Bajaj Capital implements its vision of being a 'One-stop Financial Supermarket.' The
Company offers all kinds of financial products, including the entire range of investment and
insurance products through its Investment Centres. Bajaj Capital offers 'full-service merchant
banking' including structuring, management and marketing of Capital issues. Bajaj Capital reinvents
'Financial Planning' in its international sense and upgrades its entire team of Investment Experts into
Financial Planners.

2002: The company focuses on creating investor awareness for Financial Planning and need-based
investing. To achieve this goal, the company introduced the International College of Financial
Planning. The graduates of this institute become Certified Financial Planners (CFPs), a coveted
professional qualification.

2004: Bajaj Capital obtains the All India Insurance Broking Licence. Simultaneously, a series of wealth
creation seminars are launched all over the country, making Bajaj Capital a household name.

2005: Bajaj Capital launches 360° Financial Planning, a software-based programme aimed at
encouraging scientific and holistic investing.

2007: Bajaj Capital launches Stock Broking and Depository (Demat) Services.

2010: Bajaj Capital launches Just Trade, an online Platform for investing in Equities, Mutual Funds.

2012: Receives award for ‘Best Financial Planning Company' for the year 2011–12

2013:

2014:

2015: Bajaj Capital receives 'Best performing Financial

Advisor Retail' in the CNBCTV18 and UTI Financial
Awards 2015
2016:

2017: Bajaj Capital receives “ Best performing Financial Advisory retail” in UTI mutual funds and
CNBC TV 18: Financial Advisor Awards 2016-17.

2018:

3. MISSION AND VISION

MISSION: Bajaj Capital aims to be the most useful, reliable and efficient provider o Financial
Services. It is our continuous endeavour to be a trustworthy advisor to our clients, helping them
achieve their financial goals.

VISION: To be the most preferred financial planning and investment advisory company in India by
providing consumers with informed choices of lasting value, create wealth for them to make their
tomorrow better than today.
4. PRODUCTS AND SERVICES OFFERED

Financial Planning

o 360°Financial Planning
o Investment Planning
o Insurance Planning
o Retirement Planning
o Tax Planning
o Children's Future Planning
o Cash Flow Planning
o Portfolio Tracker
o Financial Planning Tools
Mutual Funds

o Top Funds
o Latest NAV
o Historical NAV
o Current NFOs
o Compare Funds
o Dividends Declared
o Current NFOs
o Compare Funds
o Dividends Declared
o Fund Barometer

Insurance
o Life Insurance Products
o Term Insurance Premium
o General Insurance Products
o General Insurance Brochures
o Health Insurance Premium
o Insurance Policy Reminder
o ULIP Multimeter

Calculators

o Crorepati Calculator
o Child Education Planner
o Child Marriage Planner
o Pension / Retirement Planner
o Future Value Calculator
o Maturity Yield Calculator
ORGANISATIONAL STRUCTURE
S.W.O.T ANALYSIS OF BAJAJ CAPITAL

Strengths

1.Bajaj Capital draws strength from years of experience in handling the ever changing
financial scenario strong customer relationships.
2 .Ability to provide the cutting edge technology at best-value for money.
3.An excellent service and support infrastructure

Weakness:

1. The company needs to evolve a comprehensive plan and strategy to make in roads into
part of middle class.
2. Lack of R & D centers also makes it difficult to launch new products over here.

Opportunities:

1. The present rate of growth of the financial industry and a large potential available in these
areas provides excellent opportunities for the company to widen its market.
2. With the fast growing economy the pricing strategy needs to be tackled with care as it can
decide upon long term decisions of the company.

Threats:

1. It is natural that threats from the existing as well as new entrants will affect the presentturnover
and market share.

2. The nearest competition having the identical product range are the greatest threat to the
company

COMPETITORS OF BAJAJ CAPITAL LIMITED (in Dehradun region)

1. Karvy Stock Broking Ltd

2. Anand Rathi Stock Brokers

SEGMENTATION, TARGETING AND POSITIONING

Segment Brokerage

Target Group Urban and Rural Investors

Positioning Complete Investment and Stock trading Solutions

MUTUAL FUNDS

A Mutual Fund is a trust that pools together the savings of a number of investors who
share a common financial goal. The fund manager invests this pool of money in securities --
ranging from shares and debentures to money market instruments or in a mixture of equity and
debt, depending upon the objectives of the scheme. Actually mutual fund collects the savings
from small investors, invest them in Government and other corporate securities and earn
income through interest and dividends, beside capital gains. It works on the principle of “small
drops of water make a big ocean”. For instance if one has Rs. 1000 to invest, it may not fetch
very much on its own. But when it is pooled with Rs. 1000 each from lot of other people, then,
one could create a big fund large enough to invest in a wide varieties of schemes and debentures
in order to enjoy a large scale operations. Hence a mutual fund is nothing but a collective form
of investment. Each fund is divided into no. of units of equal value. Each investor is allocated
in units in proportion to the size of their investments. Thus every investor whether big or small,
will have stake in the fund and can enjoy the wide portfolio of the investment hold by the fund.
It has emerged as a popular vehicle of creation of wealth due to high return, lower cost and
diversified risk.
DEFINITION:-
The Securities and Exchange Board of India (Mutual Funds) Regulations, 1993 defines
mutual fund as “a fund established in the form of a trust by a sponsor, to raise monies by the
trustees through the sale of units to the public, under one or more schemes, for investing in
securities in accordance with these regulations”.
FUNCTIONS:-
The special objective or advantage of mutual fund is that it provides investors of
small and moderate means the opportunity that is enjoyed by large, rich investors namely, to
realize high and secure rate of return on their savings. This is sought to be ensured by
diminishing the risk of investing in stocks by spreading or diversifying investments over a large
number of different kinds of stocks. The Unit trust helps (small) investors to obtain “high
return-low risk” combination from their indirect holding of equities and other assets.
ADVANTAGES:-

SL. No. Advantage Particulars

Mutual Funds invest in a well-diversified portfolio of securities

Portfolio
1. which enables investor to hold a diversified investment portfolio
Diversification
(whether the amount of investment is big or small).

Fund manager undergoes through various research works and has

Professional
2. better investment management skills which ensure higher returns
Management
to the investor than what he can manage on his own.
 Investors acquire a diversified portfolio of securities even with a
3. Less Risk small investment in a Mutual Fund. The risk in a diversified
portfolio is lesser than investing in merely 2 or 3 securities.

Due to the economies of scale (benefits of larger volumes),

Low Transaction
4. mutual funds pay lesser transaction costs. These benefits are
Costs
passed on to the investors.

An investor may not be able to sell some of the shares held by him
5. Liquidity very easily and quickly, whereas units of a mutual fund are far
more liquid.

Mutual funds provide investors with various schemes with

Choice of different investment objectives. Investors have the option of
6.
Schemes investing in a scheme having a correlation between its investment
objectives and their own financial goals.

Funds provide investors with updated information pertaining to

7. Transparency the markets and the schemes. All material facts are disclosed to
investors as required by the regulator.

Investors also benefit from the convenience and flexibility offered

by Mutual Funds. Investors can switch their holdings from a debt
8. Flexibility scheme to an equity scheme and vice-versa. Option of systematic
(at regular intervals) investment and withdrawal is also offered to
the investors in most open-end schemes.

Mutual Fund industry is part of a well-regulated investment

environment where the interests of the investors are protected
9. Safety
by the regulator. All funds are registered with SEBI and complete
transparency is forced.

BROAD MUTUAL FUND TYPES

The schemes floated by MFs can be classified into different types based on location,
duration of operation, major objectives, major financial instrument used for investment and so
on.
BROAD MUTUAL FUND TYPES
1. Equity Funds

Equity funds are considered to be the more risky funds as compared to other fund types, but
they also provide higher returns than other funds. It is advisable that an investor looking to
invest in an equity fund should invest for long term i.e. for 3 years or more. There are
different types of equity funds each falling into different risk bracket. In the order of
decreasing risk level, there are following types of equity funds:

a. Aggressive Growth Funds - In Aggressive Growth Funds, fund managers aspire for
maximum capital appreciation and invest in less researched shares of speculative
nature. Because of these speculative investments Aggressive Growth Funds become
more volatile and thus, are prone to higher risk than other equity funds.

b. Growth Funds - Growth Funds also invest for capital appreciation (with time horizon
of 3 to 5 years) but they are different from Aggressive Growth Funds in the sense that
they invest in companies that are expected to outperform the market in the future.
Without entirely adopting speculative strategies, Growth Funds invest in those
companies that are expected to post above average earnings in the future.

c. Specialty Funds - Specialty Funds have stated criteria for investments and their
portfolio comprises of only those companies that meet their criteria. Criteria for some
specialty funds could be to invest/not to invest in particular regions/companies.
Specialty funds are concentrated and thus, are comparatively riskier than diversified
funds. There are following types of specialty funds:

i. Sector Funds: Equity funds that invest in a particular sector/industry of the

market are known as Sector Funds. The exposure of these funds is limited to
a particular sector (say Information Technology, Auto, Banking,
Pharmaceuticals or Fast Moving Consumer Goods) which is why they are more
risky than equity funds that invest in multiple sectors.

ii. Foreign Securities Funds: Foreign Securities Equity Funds have the option to
invest in one or more foreign companies. Foreign securities funds achieve
international diversification and hence they are less risky than sector funds.
However, foreign securities funds are exposed to foreign exchange rate risk
and country risk.

iii. Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower
market capitalization than large capitalization companies are called Mid-Cap
or Small-Cap Funds. Market capitalization of Mid-Cap companies is less than
that of big, blue chip companies (less than Rs. 2500 crores but more than Rs.
500 crores) and Small-Cap companies have market capitalization of less than
Rs. 500 crores. Market Capitalization of a company can be calculated by
multiplying the market price of the company's share by the total number of its
outstanding shares in the market. The shares of Mid-Cap or Small-Cap
Companies are not as liquid as of Large-Cap Companies which gives rise to
 volatility in share prices of these companies and consequently, investment
gets risky.

iv. Option Income Funds: While not yet available in India, Option Income Funds
write options on a large fraction of their portfolio. Proper use of options can
help to reduce volatility, which is otherwise considered as a risky instrument.
These funds invest in big, high dividend yielding companies, and then sell
options against their stock positions, which generate stable income for
investors.

d. Diversified Equity Funds - Except for a small portion of investment in liquid money
market, diversified equity funds invest mainly in equities without any concentration
on a particular sector(s). These funds are well diversified and reduce sector-specific or
company-specific risk. However, like all other funds diversified equity funds too are
exposed to equity market risk. One prominent type of diversified equity fund in India
is Equity Linked Savings Schemes (ELSS). As per the mandate, a minimum of 90% of
investments by ELSS should be in equities at all times. ELSS investors are eligible to
claim deduction from taxable income (up to Rs 1 lakh) at the time of filing the income
tax return. ELSS usually has a lock-in period and in case of any redemption by the
investor before the expiry of the lock-in period makes him liable to pay income tax on
such income(s) for which he may have received any tax exemption(s) in the past.

e. Equity Index Funds - Equity Index Funds have the objective to match the performance
of a specific stock market index. The portfolio of these funds comprises of the same
companies that form the index and is constituted in the same proportion as the index.
Equity index funds that follow broad indices (like S&P CNX Nifty, Sensex) are less risky
than equity index funds that follow narrow sectorial indices (like BSEBANKEX or CNX
Bank Index etc.). Narrow indices are less diversified and therefore, are more risky.

f. Value Funds - Value Funds invest in those companies that have sound fundamentals
and whose share prices are currently under-valued. The portfolio of these funds
comprises of shares that are trading at a low Price to Earnings Ratio (Market Price per
Share / Earning per Share) and a low Market to Book Value (Fundamental Value) Ratio.
Value Funds may select companies from diversified sectors and are exposed to lower
risk level as compared to growth funds or specialty funds. Value stocks are generally
from cyclical industries (such as cement, steel, sugar etc.) which make them volatile in
the short-term. Therefore, it is advisable to invest in Value funds with a long-term time
horizon as risk in the long term, to a large extent, is reduced.

g. Equity Income or Dividend Yield Funds - The objective of Equity Income or Dividend
Yield Equity Funds is to generate high recurring income and steady capital appreciation
for investors by investing in those companies which issue high dividends (such as
Power or Utility companies whose share prices fluctuate comparatively lesser than
other companies' share prices). Equity Income or Dividend Yield Equity Funds are
generally exposed to the lowest risk level as compared to other equity funds.
h. Open-Ended Funds:-
It is just the opposite of the closed –ended funds. Under this scheme the size of
the fund and the period of the fund are not pre-determined. The investors are free
to buy and sell any number of units at any point of time. These fund are not
 publicly traded but re-purchase and resell facility is there with them. Since the
units are not listed in the stock exchanges so their prices are linked to the NAV
of the units. The NAV is determined by the fund and it varies from time to time.
In a nutshell, the open-ended funds have a perpetual existence and their corpus
is ever changing depending upon the entry and exit of the members.
i. Income Funds:-
As the very name suggests, this fund aims at generating and distributing regular
income to the members on a periodical basis. It concentrates more on the
distribution of the regular income and it also sees that the average return is higher
than that of the income from the bank deposits. This is best suited to the old and
retired persons who may not have any regular income. It concerns itself with the
short run gains only.
j. Growth Funds:-
Unlike the income funds, growth funds concentrate mainly on the long run gains i.e.
capital appreciation. They do not offer regular income and they aim at capital
appreciation in the long run. Hence they have been described as ‘Nest Eggs’
investment. This is best suited to the salaried and the businessman who have high risk
bearing capacity and ability to defer liquidity.

WHOLE MUTUAL FUND PRODUCT

Where F1: -Core Expectations

F2: -Tangible Product (Market Performance)

F3: -Augment Product (Service Behavior)

F4: -Persuasive Communication

F5: - Confidence Factor

It is evident from the analysis that the changing preferences of the investor create many
new needs, which may be controlled by key determinants. Table- V depicts that the first
factor identified with product features are awareness of attribute of the product, hassle free
trading, exclusivity for small investors, ownership of the product, technology, lock in period
 and brand name. These attributes can be grouped under Factor-2 loading indicates that
among various product feature variables, performance of Factor- 1 and termed as Core
Product. These are the core part of a mutual fund product, which are common expectation
of any customer while making a purchase decision. The second factor is designated
Performance Factor on the basis of the loaded variables. The data set of the the fund, safety,
liquidity, regular income, tax benefit, emergency need fulfillment attributes are found to be
important by customers for making a brand choice. This is an indicator that by sheer name
of the company no mutual fund product is going to survive and grow in the market. This is
supported by the recent series of poor performances of UTI in the Indian Market. People are
no more looking in to the name for making decision. The market has moved purely from a
market of single choice to a competitive choice.This kind of consumer orientation is good for
the Indian market. It not only offers a basket of products to choose from but also makes the
fund managers to think and take prudent decision regarding the investment and market
capitalization. Unless the fund provides growth equipped with assured return and high
liquidity the market response is going to be poor. While designing a mutual fund product the
product manager has to be concerned about offering a mix of combination in risk return and
liquidity. Thus performance factor of the fund expressed in its NAV details is an influential
variable in the purchase decision of the investor making it the most tangible component
visible to the investor in the offering.It shows the significance for transparency, service
behaviors and delivery schedule. This factor suggests that the process of delivery should be
prompt and on time. An investor’s service expectation statement should be the vision for
the organization to aspire for. This component of service augmentation or “Augment Part”
of the product makes it mandatory on the part of the fund manager to provide services in a
continuous basis so that the customer stays loyal and happy with the fund and responds to
changing need of the customers. It includes attributes such as sponsor reputation,
advertisements, Broker/Agents recommendations, friend/ relative suggestion. This element
is more important in a competitive market where most of the product offerings are similar
and the customer finds it difficult to take a decision. In an advanced and matured market
like that of urban India what needs to be done for the success of a mutual fund is a high
degree of persuasive communication than the current practice. Present communication and
promotions about various mutual fund products in India are informative only. As the market
has advanced to a higher level what needs to be done is to promote own brands than
promoting the category only for attracting investors of mutual fund. The concept of brand
image and market goodwill generated out of past performance of mutual fund is explained
by the term sponsor reputation. It clearly indicates the combination of three attributes such
as performance guarantee, assured return and degree of capital appreciation. This factor is
termed as investor’s confidence factor, which is built over a period of time due to
consistency in performance and transparency in market behavior. The five factors explained
above are the proposed product combinations of a mutual fund offering to the investors. If
the product designers will be careful about these key issues while designing a brand of
mutual fund then only the brand will see a higher customer response and enjoy market
success.

7 P’s Of Marketing
Product:
Mutual fund as a product is the investment, which the investors hold. The steps, which are involved
in the formulation of the schemes or product designing, are conceptualisation, drafting, test
marketing, approval and authorisation of the scheme. Since mutual fund is a service, there is a little
element of physicality. Physical evidence is the Mutual fund documents and the statements that are
received periodically. Mutual fund managers want to deliver good quality at a reasonable cost, but
the managers cannot make any promises about the future performance of the investment since a
mutual fund is not a consumer product with consistency of performance. There are number of
mutual fund schemes that are floating in the market. One mutual fund house deals in many
schemes. The product line of the mutual fund houses ranges from 30 to 300 schemes in India as
market segmentation is done to cater to all the specific investment demands of the customers.
Market segmentation increases product differentiation, limiting competition to the funds belonging
to the same category, while
fund proliferation increases market coverage. It relies either on the creation of many funds in order
to hide the poor performers merging them into the best ones. Sponsors of the mutual funds make
efforts to differentiate their products and bring in recognition of their brand names in the
consumers as it leads to product identification at the market place. It is seen that Mutual funds in
India have been quite successful in brand policy and brand identification.

Place:
Place or the marketing channel describes the groups of individuals and companies which are
involved in channelising the flow and sale of product and services from the provider to the eventual
customer. In mutual fund also there are channels broadly defined as ‘direct’ or ‘indirect’. Direct
channels involve the movement and sale of products directly between the provider and the
customer as in the traditional branch network, whereas in the case of indirect channels product
flows via intermediaries and middlemen. Traditionally mutual fund has been via the branch network,
but now different approaches are adopted.

Promotion:
With globalisation the entry of multinational corporations propelled
due to which the market changed into a buyers’ market and due to the sudden competition growth,
the domestic mutual fund industry was shaken. Promotional efforts should be stimulating and
motivating enough to generate interest in and promote a positive attitude towards a Mutual fund
house so that they will be considered favourably in comparison with the competitors. As there are
so many players in the Mutual fund Industry, to choose one mutual fund over the other becomes
very difficult for the investors. This has led the mutual fund to follow aggressive promotional
techniques. Besides leading National Dailies, funds regularly advertise in business newspapers and
magazines.

Pricing:
Price competition involves using low prices as a competitive tool to
attract customers. As the price of the mutual fund is dependent upon the price of the underlying
shares. Therefore it is the distribution cost not the manufacturing cost in Mutual fund that separates
one competitor with another. One of the advantages of Mutual funds that it discloses its entire fee
charged.

People:
Mutual fund marketers need to develop a high level of inter personal skills and customer oriented
attitude in employees for the simple reason that employees in services are the key to service
experience. All employees in the mutual fund house have an effect on the sale of the products. This
is true of frontline a staff that has direct control with customers; they provide the link between the
Mutual fund and the investors. To the investor they represent the Mutual fund company. Success of
mutual fund is highly dependent upon the relationship of the investors with the employees as there
is a little difference between the products the different fund houses are offering, it is mainly the
commitment that a mutual fund house makes.

Physical evidence:
The allocation of greater amount of space in a mutual fund house is likely to have a positive
relationship between the company and the investors. Physical evidence also means the offer
documents and Mutual fund statements that the investors are provided with. In order to have a
better relationship with the investors, the statements should be regular, easily understandable and
all the facts should be mentioned in it.

Process :
means the process through which the investor’s money is invested in different schemes and the
returns are provided to them. The process should be less complex. The revision of schemes should
not be a very frequent task as it leads to increase in cost. The mutual fund houses make efforts to
standardise the process. In order to customize the process, so lot of different schemes are coming
into the market.

Distribution Channels

There are number of distribution channels that are existing and the channels are still expanding. The
channels can be divided into the following heads:
•Direct Marketing
•Personal selling
•Telemarketing
•Direct Mail
•Selling through intermediaries like brokers, agents, banks, etc.
•Joint calls

.
According to Syed Sahabuddin, the essentials of a Good Distribution System are:
•Product selection should be done carefully.
•Internal sales staff should be carefully selected.
•Right targeting of customers should be done. A proper strategy based on a demographic study will
lead to a smooth, seamless customer penetration and sales volumes.
•Proper training -Training is the key on which the entire distribution revolves. It is essential that
sales force should be continuous trained in this dynamic environment.
•Educating/ counselling the customer about products is required keeping in mind rising customer
expectations and increasing buyer expert

Advertisement of Mutual Funds

Nowadays the Advertising content has changed. Now they are concept selling ads which used to be
selling specific schemes that defined objectives /goals. Thus an advertising
campaign must have the following elements present:

•Creating awareness of the product,

•Comparative advantage of the product,
•Future potential of the product,
•Past performance of similar products,
•and superiority of the fund in relation to others in the area of asset
management and performance servicing.
However, One of the limiting factor that prevents Mutual Fund advertising is the regulatory
framework .For instance, the MF are required to mention the fund objective in very clear terms in
the offer document, and risk factor also to be mentioned. SEBI also prohibits any content that
mislead the investors. All the Mutual fund have to first understand the meaning and implications of
the SEBI Guidelines pertaining to mutual fund Marketing before designing a Marketing strategy.
Methods adopted by AMCs for Promotion and Campaigning of Mutual Fund
1. Through Advertisement:Each AMC spends a lot of money in order to advertise for its Mutual
Fund. The amount spend is high in case New Fund Offers. Various mediums of advertisement use are
given below:
•Television
•Radio
•Print Media
•Hoardings
According to Kaushik Raja, the following are the forms of advertising adopted by Mutual
Funds.
A)Tombstone Advertisement
B)Product Launch Advertisement
C)Advertisements through Hoardings/Posters
D)Advertisements through Audio-Visual Media
Selling through intermediaries
: Intermediaries contribute towards 80% of the total sales of mutual funds. These are the
distributors who are in direct touch with the investors. They perform an important role in attracting
new customers. Most of these intermediaries are also involved in selling shares and other
investment instruments. They do a commendable job in convincing investors to invest in mutual
funds. A lot depends on the after sale services offered by the intermediary to the customer.
Customers prefer to work with those intermediaries who give them right information about the fund
and keep them abreast with the latest changes taking place in the market especially if they have any
bearing on the fund in which they have invested. Most of the funds conduct monthly/bi-monthly
meetings with their
distributors. The objective is to hear their complaints regarding service aspects from funds side and
other queries related to the market situation. Sometimes, special training programs are also
conducted for the new agents/ distributors. Training involves giving details about the products of
the fund, their present performance in the market, what the competitors are doing and what they
can do to increase the sales of the fund

Joint Calls: This is generally done when the prospect seems to be a high net worth investor. The BDA
and the agent (who is located close to the HNIs residence or area of operation) together visit the
prospect and brief him about the fund. The conversion rate is very high in this situation, generally,
around 60%. Both the fund and the agent provide even after sale services in this particular case.
Meetings with HNIs is a special feature of all the funds. Whenever a top official visits a particular
branch office, he devotes at least one to two hours in meeting with the HNIs of that particular area.
This generally develops a faith among the HNIs towards the fund.

INTERNSHIP PLAN

This report details a summer internship at Bajaj Capitals in Dehradun. I worked in the marketing
Department under the guidance of Mr. Madhav Chauhan who is the marketing head at Bajaj
Capitals, Dehradun.

Week Number 1:
Week Number 2:

Week Number 3:

Week Number 4:

Week Number 5:

Week Number 6:
1. STATEMENT OF PROBLEM:

2. OBJECTIVE OF THE STUDY:

a. To find out the best marketing strategies for mutual funds.

b. Measuring the effectiveness of existing marketing strategies used for promoting mutual funds

c. Market potential of mutual funds

3. RESEARCH DESIGN:

For obtaining complete and accurate information, Descriptive research is chosen..

Descriptive research includes surveys and fact finding enquiries of different kind.

4. DATA SOURCES:

The data used for the study is Primary data. Primary data is the data collected for the purpose of study
by the samples taken. The primary data was collected by conducting a personal interview through a
structured questionnaire.

Secondary data has been taken from Internet, magazines, journals, etc

5. RESEARCH APPROACH:

The approach adopted in this study is survey approach.

6. RESEARCH INSTRUMENT:

The research instrument used in the study is Questionnaire and Personal interview method. The
questionnaire consists of close ended questions.

TYPES OF QUESTIONS USED IN THE QUESTIONNAIRE:

Close ended Questions

To know the choice of the people regarding various matters.

Dichotomous Questions

This has only two answers “Yes” or “No”

Multiple Choice Questions

Where respondent is offered more than two choices. This is done to know the choice of the
customers regarding different matters.

SAMPLING TECHNIQUE: SNOW BALL AND RANDOM SAMPLING

The sampling procedure used in this study is Snowball sampling and Random sampling.

Snowball sampling is a non-probability sampling technique where existing study subjects recruit future
subjects from among their acquaintances. Thus the sample group appears to grow like a rolling
snowball.

A simple random sample is a subset of individuals chosen from a larger set. Each individual is chosen
randomly and entirely by chance, such that each individual has the same probability of being chosen at
any stage during the sampling process, and each subset of k individuals has the same probability of
being chosen for the sample as any other subset of k individuals.

SAMPLE SI*E: Sample si*e was limited to 100 respondents.

SAMPLE EXTENT : Urban Areas of Dehradun City

TIME FRAME: 8 weeks

LIMITATIONS OF THE STUDY:

1. Sample size of the study was limited to 100 only. The sample size may not represent the whole
market.
2. The study is limited to the Urban areas of Dehradun city .Therefore the inferences cannot be
generalized

CHAPTER – 3

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

1. Customer Demographic Profile

AGE
GENDER
OCCUPATION
INCOME
PROFESSION

FINDINGS

1. Mode of communication for receiving updates and performance of the portfolio of mutual fund
investment is email /internet for most of the investors, they also prefer telephone and personal
visit and direct mail is the least preferred mode of communication.

2. Factors which prevent investors from investing in mutual fund mainly is bitter past experience
.Difficulty in selection of schemes is another preventing factor. For some investors lack of
confidence in service being provided and inefficient investment advisers prevents them from
investing and a few investors think that it is lack of knowledge that prevents them from
investing in mutual fund.
 3. It is found that the most important attribute for investment consideration is return. Next
important criteria for investment is Liquidity.

4. This study revealed that among various kinds of investments, top 5 investment alternatives from
investor’s point of view are Real estate, Gold, PPF, FDR and mutual funds. It is found that
NSC,KVP etc. was least preferred investment instruments.

5.

CONCLUSION

Mutual Fund Marketing is different from marketing of other goods. The present study try to explore the
marketing strategies adopted by mutual funds, the different 7Ps that are involved in the marketing of
mutual fund and also the Marketing strategies that are
involved by the various mutual fund houses for attracting the investors. Mutual funds are not absolutely
free to choose their material from advertisement or promotion, as SEBI has issued some mandatory
guidelines for the fund houses. Mutual fund houses are more dependent on the intermediaries and
presently the fund houses are using all the available option for advertisement and promotion.
SUGGESTIONS

From this above survey I came to know that many people are not aware
about mutual funds and their benefits. Those who invest in mutual funds
also not know properly about its different schemes. Here I would like to
state some points which I feel that if Bajaj Capital seriously works it will
definitely help in improving its market share.

1. CREATING AWARENESS:

•Make awareness camps to make people know about the various financial plans..
•Arrange for camps by taking appointments from the people who actually wanted to undergo a training
program on self-financial planning.
•Make frequent visits to people in the intermediate level of income and ask about their investment
plans and keep a track about it.

2. BUILDING TRUST

Instead of just selling financial products, an effort should be taken to make the people understand what
the benefits of such an investment are.

3. Tapping the untapped market

More focus should be on salaried class people

I just captured small portion of the market through my survey. A
detailed study about the market should be carried out to tap the market
in a better way.
 2. Customer Demographic Profile

AGE
GENDER
OCCUPATION
INCOME
PROFESSION

2. What are the various investments tools you invest in?(Tick all that are applicable)

3. What are the various attributes are important for you while taking any investment option?

4. What is the source of information for mutual funds?

5. Are you aware about the current Mutual fund Schemes?

6. Whom do you approach for your investment decisions?

7. Which mode of communication does your company use to communicate with you?

8. Which mode of communication would you like the company to approach you in regards with your
investment?
9. Please rate your experience with your financial service provider.

10. Do you find investing in mutual funds complex?