Description
In a demat account , shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a demat account for the purpose of transacting shares.
SERVICE SECTOR REPORT ON
The training is undertaken with the objective to study the overall organizational working in service sector company “BAJAJ CAPITAL LTD” and its departments in the organization. As a part of training I first trying to understand the all product of the company and along with this I also know about the services provided by “BAJAJ CAPITAL LTD”. In this project, I had tried to understand the functioning of a company and how it performs its work at different levels in the organization. Here, in these training I could learn a lot and got an immense practical knowledge of the firm by day to day observation. In the report, I have discussed about various departments of the organization which are Human Resource Management, Marketing, and finance department. These all department study made me compatible to understand and work out properly.
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As a part of research, I studied the “AWARENESS OF THE MUTUAL FUND”. In the research work first, I decided my criteria for the research work and through the questionnaire I collected primary data and also with the help of staff members of BAJAJ CAPITAL LTD. And secondary data was collected by using various books, pamphlets and website of the company. At last I given some suggestions and limitation of the study.
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Research Objectives: • Consumer awareness of mutual fund at BAJAJ CAPITAL, Rajkot branch. • To know which criteria people consider while selecting mutual fund. • To know the investment priority of the people.
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Research Design:
? Quantitative research design ? Steps in Sample Design:
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? Unit: The target population was divided into three segments i.e. Business Man Govt. employee Professional ? Sample size: 100 People ? Sampling Method: Non-Probability sample and under the head of Quota Sampling.
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Sources of Data Collection: Primary Data: The primary data was collected through questionnaire – containing questions regarding MUTUAL FUND AWARENESS and about BAJAJ CAPITAL’s mutual schemes. Interviews for information from C.R.M.& Branch Head, MR.Hardik kothari and other employee of BAJAJ CAPITAL.
? Secondary Data: • • • • ? The secondary data was available from: Prospectors Bajaj Capital’s Record Internet Other company records Limitation:-
The research was limited to Rajkot City only so there is limitation of area for an appropriate analysis. • It is one of the many study and therefore doesn’t cover a large number of respondents and even grater area.
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Findings & conclusion
uring the research I found that Govt. employees are investing in the mutual fund for the tax benefit & businessmen is doing investment in the mutual fund for the higher return and safety. The awareness of “Mutual Fund” has very less response. So the more promotional activities are left to be done particularly for this product. The influence of “Mutual Fund” can also increase with the family, friends, through advisors & more investment center. As per the research data I found that Mutual Fund is the reliable source for investment only the reasons that… • Higher Return • Less Risk • More Liquidity • Less Expenses, etc
SR NO.
1 2 3 TITLE PAGE
CONTENT
1
PAGE NO.
CERTIFICATE (Company) CERTIFICATE (College)
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4 5 6 7 8
PREFACE ACKNOWLEGEMENT DECLARATION EXECUTIVE SUMMARY RESEARCH METHODOLOGY GENERAL INFORMATION
2 3 4 5 6 10 11 12 15 16 18 19 20 22 23
? Introduction
? ? ? ? ? ? ? ? History Highlights Organizational Structure Size of Organization Form of Organization Mission, Aims and Objectives Significance of logo Bajaj Capital’s Philosophy
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SERVICES ? ? ? ? ? Introduction Financial Planning Investment Insurance Investors
24 25 26 39 48 51 61 62 64 65 66 67 69 70 73 74 75 76 77 78 79 80 81 82 83
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MARKETING DEPARTMENT ? ? ? ? ? ? ? ? ? ? ? ? Introduction Department Structure Market Mix Level of Product Product Mix Channel Production Mix Promotion Strategy Competitors Marketing Segmentation Target Marketing Research Information
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FINANCE DEPARTMENT ? ? ? ? ? Introduction Financial Planning Capital Structure Cash Management Ration Analysis
12
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HUMAN RESOURCE DEPARTMENT ? ? ? ? ? ? ? ? ? ? Introduction HR Policy & Program Recruitment Selection Selection Process Orientation Placement Employee Remuneration Training and Development Promotion and Transfer
84 85 86 87 88 89 90 91 92 95 96 98 99 100 102 103 105 106 107 108 109 110 129 130 131 132 135
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RESEARCH REPORT ? ? ? ? ? ? ? ? ? ? ? ? Introduction About Mutual Fund Market and Marketing Research Objectives of the Study Research Methodology Research Design Data Collection Sampling Design Sampling Steps Research Analysis Limitation of the Study Findings and Conclusion
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ANNEXTURE 15 16 ? Research Instrument
BIBLIOGRAPHY
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Bajaj capital is a SEBI approved merchant bankers, investment advisor and financial planner. It has a track record of ethical dealings for the last 40 years and has had the honours of helping millions of investors achieve their life’s financial goals. It offers free advice on investment, insurance, tax saving, retirement planning, children’s future planning and other services. It has wide range of product &services for corporate high net worth individuals, and NRIs etc . It offers wide range of investment products such as mutual fund, life insurance, bonds, and post office schemes etc.offered by public, private and govt. organizations.
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It recognized as one of the largest fund mobilize in the country. The investors constitute a community of over 6,00,000 individual investors and over 2500 institutions like corporate charitable trusts, educational institutions, NGO’s and scientific research organizations.
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? IN 1964
BAJAJ CAPITAL has contributed to the growth of the Indian capital market at every step. In 1964, BAJAJ CAPITAL sets up its first investment center in NEW DELHI to guide individual investors on where, when & how to invest. [India’s first mutual fund, UNIT TRUST OF INDIA (UTI) is incorporated in the same year.
? In 1965
BAJAJ CAPITAL is incorporated as company in the same year the company introduces an innovative financial instrument is the company fixed deposit.
? In 1966
BAJAJ CAPITAL expands its product range to include all UTI schemes in addition to company fixed deposits.
? In 1969
BAJAJ CAPITAL manages its first equity issue of GRAUER &WELLS INDIA LTD; right from drafting the prospectus to marketing the issue.
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? In 1975
BAJAJ CAPITAL starts offering need based investment advice to investors which would later be known as ‘FINANCIAL PLANNING’ in the investment world.
? In 1987
SBI leads the launch of public sector mutual funds in India. BAJAJ CAPITAL plays a significant role in fund mobilization for all these players. After four years in 1991, SBI issues India Development Bonds for NRIs. BAJAJ CAPITAL also becomes the top five mobilizes with the collections of over US $ 20 million.
? In 1995
IDBI and ICICI being issuing their series of bonds for retail investors. BAJAJ CAPITAL is the co-manager in all these offerings and constantly ranks among the top five mobilizes on an all India basis.
? In 1997
BAJAJ CAPITAL consolidated its position as India’s largest retail distributor of mutual funds.
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? In 2004
BAJAJ CAPITAL obtains the all India insurance license. Simultaneously, a series of wealth creation seminars are launched all over the country, making BAJAJ CAPITAL a household name.
? In 2005
BAJAJ CAPITAL launches ‘360 degree financial planning’ software bases programmed aimed at encouraging scientific and holistic investing.
? In 2008
BAJAJ CAPITAL gets business sphere award titled ‘BEST INSURANCE BROKER’ was conferred by Shri sriprakash jaiswal honorable union minister of state for home affairs.
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Name of the company: LOCATION (IN RAJKOT):-
BAJAJ CAPITAL ‘PRATIBHA COMPLEX’ 1’ST FLOOR, MOTI TANKI CHOWK, RAJKOT. SERVICE PROVIDER PRIVATE LTD Mr. K. K. Bajaj
TYPE OF THE UNIT: FORM OF ORGANISATION: Chairman:
E-MAIL ADDRESS: WEB SITE: Ph NO: -
[email protected] www.bajajcapital.com (0281) 2693309, 2461843
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Organizations structures are mainly of three kinds. They are formed as per requirement of business unit.
They are as follows:• Line organization • Line & staff organization • Functional organization BAJAJ CAPITAL has selected functional organization structure. In this type of structure the authority flows from top to bottom and responsibility flows from bottom to top. The working of BAJAJ CAPITAL is very smooth because of chain of commands.
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ORGANISATION STRUCTURE
CHAIRMAN
MR.K. K. BAJAJ
MANAGING DIRECTORS
MR.SANJIV BAJAJ
MR.RAJIV BAJAJ
CHIEF EXECUTIVE OFFICER
MR. ANIL CHOPRA
NATIONAL HEAD (mf)
MR. SURJIT MISHRA
WEST ZONE
MR.JIGNESH PARIKH
EXECUTIVE VICE PRECIDENT
AREA MANAGER
MR.SHAILESH DEVDA
RAJKOT AHMEDABAD JAMNAGAR BRANCH MANAGER
MR HARDIK KOTHARI
BARODA
SURAT
MR.KAMLESH GOHEL (ASST.MANAGER-ANG) MR. SANDIP BUNDELA (F.P.E-ANG) MR. DUSHYANT KARELA (F.P.E-DIRECT) MR. GAURAV RAVESHIA (F.P.E-DIRECT)
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Managerial decision regarding the size of the plant or firm will be depends on the size of market to be created. Technical, managerial, functional and human resources at our disposal are the crucial factor determining the size of our business operation. We must strive to reach the optimum size in order to obtain the lowest cost of production as well as the lowest cost in distribution. The sizes of business unit are as follow:• Large scale unit • Medium scale unit • Small scale unit According to the Indian companies Act 1956, an organization established with an initial capital of Rs.1 crore or more than Rs.1 corer is called large scale unit. BAJAJ CAPITAL is a medium scale service base unit.
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The development or growth of organization is closely interconnected with the stages of economic development of a country. Thus, after the economic development the evolution and development of business organization is accelerated. The business unit gradually expanded from sole proprietorship in to partnership firms and than in to private limited companies and in to big public limited companies and finally in to huge business combinations such as holding companies having a number of subsidiary companies. The following forms of business organizations carry out modern business.
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Form of Organization
Privet Enterprises
Co-operative Sector Enterprises
Public Sector Enterprises
Sole Trader Partnership Firm Company Orga. Privet Com. Public Com
Co-operative Society Co-operative Store
Government Department Govt. Company Statutory Corporation Statutory Board
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The single focus of the organization is to be the most useful reliable and efficient provider of financial services. It is their continuous endeavor to be a trust worthy advisor to their clients & helping them in achieving their financial goal.
• To serves their clients with utmost dedication and integrity so that BCL (BAJAJ CAPITAL LTD.) exceed their expectations and build enduring relationships. • To offer unparalleled (best) quality of service through complete knowledge of products, constant innovation in services and use of the latest technology. • To always give honest and unbiased financial advice and earn their client’s everlasting trust. • To serve the community by educating individuals on the merits of financial planning and in turn help shape a financially strong society. • To create value for all stake holders by ensuring profitable growth.
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• To build an amicable environment that records respect to every individual and permits their personal growth. • Emerge as a symbol of public trust & confidence by creating a positive image. • Maintain excellence in operation & management by bringing in transparency & integrity. • Develop & motivate human resource there by cultivating professional culture in the product operation. • Ensure speedy & satisfactory customer services through continuous product innovation & aggressive marketing strategies. • The investor can be doubly sure that the advice given by them is totally impartial.
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Their logo depicts lord Ganesha who is the source of all values and ethics in business.
our
• The long trunk symbolizes continuous exploration. We explore all avenues to provide the best investment opportunities for clients. • The heavy posture of Ganesha symbolizes stability. We help our clients to attain financial stability through wise investments. • Lord Ganesha is known as the remover of obstacles and best toward the prosperity. We emulate his example and try our best to help our clients attain prosperity by proper financial planning. • Our logo has a yellow background. Yellow is the colour of gold, which symbolizes wealth. According to Vedic lore, it is also the colour associated with brihaspati, the guru and counselor of the gods. We offer our clients sage counsel to make their wealth grow. • The letters are in red. Red is the colour rajas symbolizes the power and incessant activity. It symbolizes our aggressive quest for your well being and happiness.
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Never invest directly in the stock market. Take the mutual fund route. • Safety of principal should be of prime importance. We believe in a controlled (risk) approach to investments. • Do not let inflation eat up your money in a savings bank account. Go for superior and stable return. • Have look you’re your financial objectives. Your investments should depend upon them. • Take long-term approach to equity investments. • Diversify your investments. Do not put all your egg in one basket. • Keep a reasonable amt of cash to meet your emergency needs. • Take a balanced approach to investing. Avoid risky investment
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With years, Bajaj Capital is also adding services to their customers. The India’s most admired investment advisory and financial planning company is passing through a phase of customer market. The customers have more choices in choosing their investments. A competition has been established within the different kind of investments operating in India. With stiff competition and advancement of technology, the services provided by Bajaj Capital Ltd. have become more easy and convenient. Bajaj Capital, in India with the way of development has become easy to apply in investment market.
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•
What is financial planning?
Financial planning is the process of meeting your life goals through the proper management of your finances. Financial planning helps you make advance provision for financial needs that will arise in the future. The objective of financial planning is to ensure that the right amount of money is available in the right hands at the right point in the future to achieve an individual's life goals. • Who is a financial planner?
A financial planner is someone who uses the financial planning process to help you determine how to meet your life goals. The key function of a financial planner is to help people identify their financial planning needs, their present priorities and the products that are most suitable to meet their needs. He or she normally possesses detailed knowledge of a wide range of financial planning tools and products, but his major role is to help clients choose the best products for each need. The planner can take a 'big picture' view of your financial situation and make financial planning recommendations that are right for you. • What should a financial plan include?
A financial plan should include a review of your net worth, goals and objectives, investment portfolio, cash flow, investments, retirement planning, tax planning and insurance needs, as well as a plan for implementing your goals.
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The only thing permanent in life is change. Time changes. People change. So does life. We expect life to be much better tomorrow than it is today. Tomorrow, we hope to fulfill all our dreams and aspirations. So it’s time for us to change the way we plan our investment. Now, Financial Planning is becoming increasingly popular in developed countries in the world. Bajaj Capital Ltd always so caught up in the smaller things of life, which they forget to look ahead into the future. Just remember, in order to have a secure financial future, we need to look at the bigger picture. We need to plan our financial future and then implement it as well. This is where everybody needs expert’s advice and for this Bajaj Capital is our best choice. For these requirements of the customers Bajaj Capital introduced the 360 financial planning programmed. 360 Financial Planning is the process of helping us identified and priorities our goal and also help us realize them in a planned, disciplined and systematic manner. So, Bajaj Capital Ltd helps us take a holistic view of our financial life and create a complete plan. The following circle shows the 360 degree financial planning.
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Investment Planning:- To make your wealth grow. Cash Flow Planning:- To provide for assets and meet the periodic cash requirements. Tax Planning:- To save on taxes and increase your income. Insurance Planning:- To protect yourself, your family and your assets. Children’s Future Planning:- To give your children a financially secure future. Retirement Planning:- Because retirement is a time to relax, not to get worried
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1. Investment Planning:Everyone needs to save for a rainy day. Once we have saved enough to take care of emergencies, we should start thinking about investing and to make our money grow. They can help us plan our investments so that we can reap adequate benefits and achieve our financial goals. Bajaj Capital’s Investment Planning Service includes:• Risk Profiling • Asset Allocation and Portfolio Construction • Creation and Accumulation of Wealth through Systematic Investment Plans (SIP). • Regular review of progress and Portfolio Rebalancing Essentially, Investment Planning involves identifying our financial goals throughout our life, and prioritizing them. Investment Planning is important because it helps us to derive the maximum benefit from our investments. Our success as an investor depends upon our ability to choose the right investment option. This, in turn, depends on our requirements, needs and goals. For most investors, however, the three prime criteria of evaluating any investment option are liquidity, safety and return. Investment Planning also helps us to decide upon the right investment strategy. Besides our individual requirement, our investment strategy would also depend upon our age, personal circumstances and our risk appetite. These aspects are typically taken care of during investment planning.
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Investment Planning also helps us to strike a balance between risk and return. By prudent planning, it is possible to arrive at an optimal mix of risk and returns that suits our particular needs and requirements. Investment means putting our money to work to earn more money. Done wisely, it can help us meet our financial goals like buying a new house, paying for college education of your children, of your enjoying a comfortable retirement, or whatever is important to you. We do not have to be wealthy to be an investor. Investing even a small amount can produce considerable rewards over the long-term, especially if we do it regularly. But we need to decide about how much we want to invest and where. To choose wisely, we need to know the investment options thoroughly and their relative risk exposures.
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2.
Insurance Panning:-
“Insurance is not for the person who passes away, it for those who survive” goes a popular saying that explains the importance of Insurance Planning. It is extremely important that every person, especially the breadwinner, covers the risks to his life, so that his family's quality of life does not undergo any drastic change in case of an unfortunate eventuality. Insurance Planning is concerned with ensuring adequate coverage against insurable risks. Calculating the right level of risk cover is a specialized activity, requiring considerable expertise. Proper Insurance Planning can help us look at the possibility of getting a wider coverage for the same amount of premium or the same level of coverage for the same amount of premium or the same level of coverage for a reduced premium. Hence, the need for proper insurance planning. Insurance, simply put, is the cover for the risks that they run during their lives. Insurance enables us to live their lives to the fullest, without worrying about the financial impact of events that could hamper it. In other words, insurance protects us from the contingencies that could affect us. Insurance Planning takes into account the risks that surround us and then provides an adequate coverage against those risks. There is no risk not worth insuring ourselves against, and insurance should first and foremost be looked as a measure to guard against risks - the risk of our dreams going awry due to events beyond our control
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3.
Retirement Planning
Some like it. Some don’t. But retirement is a reality for every working person. Most young people today think of retirement as a distant reality. However, it is important to plan for our post-retirement life if we wish to retain our financial independence and maintain a comfortable standard of living even when we are no longer earning. This is extremely important, because, unlike developed nations, India does not have a social security net. Retirement Planning acquires added importance because of the fact that though longevity has increased, the number of working years haven’t.
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Bajaj Capital Ltd Retirement Planning Service involves:• Computing that amount that would be required postretirement. This is done after taking inflation and time value of money into account. • Building your Retirement Corpus using Systematic Investment Plans (SIPs) and other long-term growth orient products. • Ensuring adequate post-retirement income through safe investments. The asset allocation and selection of investment vehicles keep changing as our risk-bearing capacity diminishes.
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5.
Tax Planning:-
Proper tax planning is a basic duty of every person which should be carried out religiously. Basically, there are three steps in tax planning exercise. 1. These three steps in tax planning are:• Calculate your taxable income under all heads ie, Income from Salary, House Property, Business & Profession, Capital Gains and Income from Other Sources. Calculate tax payable on gross taxable income for whole financial year (i.e., from 1st April to 31st March) using a simple tax rate table, given on next page. After you have calculated the amount of your tax liability. You have two options to choose from:? Pay your tax (No tax planning required) ? Minimize your tax through prudent tax planning.
Most people rightly choose Option 'B'. Here you have to compare the advantages of several taxes saving schemes and depending upon your age, social liabilities, tax slabs and personal preferences, decide upon a right mix of investments, which shall reduce your tax liability to zero or the minimum possible. Every citizen has a fundamental right to avail all the tax incentives provided by the Government. Therefore, through prudent tax planning not only income-tax liability is reduced but also a better future is ensured due to compulsory savings in highly safe Government schemes. Bajaj Capital sincerely advise all their readers and clients to plan their investments in such a way, that the post-tax yield is the highest possible keeping in view the basic parameters of safety and liquidity.
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•
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2.
Filing of Income Tax Return:•
Filing of income tax return is compulsory for all individuals whose gross annual incomes exceed the maximum amount which is not chargeable to income tax i.e. Rs. 1,45,000 for Resident Women, Rs. 1,95,000 for Senior Citizens and Rs. 1,10,000 for other individuals and HUFs. • The last date of filing income tax return is July 31, in case of individuals who are not covered in point 3 below. • If the income includes business or professional income requiring tax audit (turnover Rs. 40 lakes), the last date for filing the return is October 31. • The penalty for non-filing of income tax return is Rs. 5000. Long term capital gain on sale of shares and equity mutual funds if the security transaction tax is paid/imposed on such transactions.
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6.
Short Term Cash Flow Planning
In simple terms, cash flow refers to the inflow and outflow of money. It is a record of your income and expenses. Though this sound simple, very few people actually take the time out to find out what comes in and what goes out of their hands each month. Cash flow planning refers to the process of identifying the major expenditures in future (both short-term and long-term) and making planned investments so that the required amount is accumulated within the required time frame. Cash flow planning is the first thing that should be done prior to starting an investment exercise, because only then will you be in a position to know how your finances look like, and what is it that you can invest without causing a strain on yourself. It will also enable you to understand if a particular investment matches with your flow requirement. You should always do a cash flow for yourself as on date, and you will realize that you could have a potential savings amount within each month of your working life. This is the amount that you should look at saving for meeting your financial goals. The best way of doing this is to have a personal budget. Cash flow plans are commonly used by business houses. Without a viable cash flow plan, a company could easily spend more than its revenue, putting it in peril. Unfortunately, most of us do not realize that a cash flow plan is as important for people like us as well.
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Cash flow plan brings you face-to-face with what you should ideally be saving, and investing in a systematic and regular manner, and what would it mean to you to withdraw from your portfolio after a couple of years. It brings down in numbers what your financial future has in store for you, and gives a crystal clear view (as much as is possible with inflation and the interest rate scenario). • Cash Flow Planning Basics:-
• The idea behind cash flow planning is to match expenses on life goals with the available income. Cash flow planning begins with identifying the sources and the amount of income and expenditure. • 'Income' includes maturities of investments, income from other sources, dividends, etc. 'Expenses' include loan repayments, and all other outflows etc. • The next crucial step is to list out the life goals and assigning a time frame for achieving them. • The next step is to priorities these goals. As you will notice, some of these goals are high priority, while others could be assigned a relatively lower priority. • High priority goals are those where you do not have the liberty of compromising either on the time frame or on the amount. Low priority goals, on the other hand, can be tweaked around a bit.
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• Finally, take care to ensure that you have a contingency fund to tackle an emergency. Ideally, the size of your contingency fund should be two-three times your monthly expenditure, if you are a working person. If you are a retired person, the amount should be three to five times. Thereafter, your financial planner can help you work out the right investment strategy by using the principles of Investment Planning. Essentially, this involves calculating the amount of investment required to realize the goal, taking inflation into account.
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7.
Children’s Future Planning
Like every parent, you too must be overjoyed to watch your child grow. All parents want to give the best possible upbringing to their children. This includes good education and security, in case of any eventuality. Soon, your little bundle of joy will grow up, and it will be time to provide for his or her higher education and wedding. The purpose of Children's Future Planning is to create a corpus for foreseeable expenditures such as those on higher education and wedding, and to provide for an adequate security cover during their growing years. Children's Future Planning acquires added importance because children's education and wedding are not high priority life goals, which can be postponed nor can there be a compromise on the amount. Like most parents, you might be saving regularly to ensure a safe tomorrow for your child. However, savings alone is no longer enough. For ensuring adequate funding of your child's education, you as a parent need to do two things: • Invest appropriate amount systematically and at regular intervals. • Provide for a financial security blanket to cover any eventuality There are many products which your Financial Planner can use to achieve the above objectives. For example, he could suggest a Children's Future Plan offered by any good insurance company, to
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build a corpus for your child's higher education, and provide for a security cover in the event of the parent's unfortunate demise.
1.
Mutual Fund
Mutual Funds are among the hottest favorites with all types of investors. Investing in mutual funds ranks among one of the preferred ways of creating wealth over the long term. In fact, mutual funds represent the hands-off approach to entering the equity market. There are a wide variety of mutual funds that are viable investment avenues to meet a wide variety of financial goals. This section explains the various aspects of Mutual Funds. 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. Investments in securities are spread across a cross- section of industries and sectors, thus reducing the risk. Mutual funds issue units to investors in accordance with the quantum of money invested by them. A Mutual fund must be registered with Securities and Exchange Board of India (SEBI). Bajaj Capital Ltd. is giving services of different company’s mutual funds in different scheme.
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These are different mutual funds are as follows:Mutual Funds (pvt. & pub.):? HDFC ? Principal ? Reliance ? Prudential ICICI ? Standard Chartered ? UTI ? TAURUS ? Bank of Baroda ? Birla Sunlife ? Canbank ? Chola Mutual Fund ? DSP Merrill Fund ? Fidelity ? Franklin Templeton
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? ? ? ? ? ? ?
HSBC ING Vysya JM Kotak Mhindra LIC SBI TATA
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Snapshot of Mutual Fund Schemes
Mutual Fund Type
Objective
Liquidity + Moderate Income + Reservation of Capital
Risk
Investment Portfolio
Treasury Bills, Certificate of Deposits, Commercial Papers, Call Money Call Money, Commercial Papers, Treasury Bills, CDs, Shortterm Government securities
Who should invest
Those who park their funds in current accounts or short-term bank deposits
Investment horizon
Money Market
Negligible
2 days - 3 weeks
Short-term Funds (Floating – short-term)
Liquidity + Moderate Income
Little Interest Rate
Those with surplus
3 weeks -
short-term funds Credit Risk & Interest Rate Risk Predominantly Debentures, Government securities, Corporate Bonds Salaried & conservative investors
3 months
Bond Funds
Regular Income
More than 9 12 months
(Floating – Long-term) Gilt Funds Security & Income Long-term Capital Appreciation To generate returns that are commensurate with returns of respective indices Growth & Regular Income Interest Rate Risk High Risk Government securities Stocks Salaried & conservative investors Aggressive investors with long term out look. 12 months & more 3 years plus
Equity Funds
Index Funds
NAV varies with index performance Capital Market Risk and Interest Rate Risk
Portfolio indices like BSE, NIFTY etc Balanced ratio of equity and debt funds to ensure higher returns at lower risk
Aggressive investors.
3 years plus
Balanced Funds
Moderate & Aggressive
2 years plus
2.
Post Office Scheme
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These schemes are offered by the Government of India. ? ? ? ? ? India. ? Safe, secure and risk-free investment options. No Tax Deduction at Source (TDS). Nomination facility is available. Nomination can be changed at any time These instruments are transferable to any part of Attractive rates of interest.
Post Office Schemes: ? ? ? ? ? Post Office Monthly Income Scheme Post Office Time Deposit Scheme Post Office Savings Account National Savings Certificate Kisan Vikas Patra
Govt. schemes offered through Post Offices and Nationalized Banks: ? ? Public Provident Fund Senior Citizen's Savings Scheme
3.
Bonds
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Bond refers to a security issued by a company, financial institution or government which offers regular or fixed payment of interest in return for borrowed money for a certain period of time. Bonds are the two types:• Tax Free Bonds 6.5% Tax free bonds has been withdrawn from the market. This will not effect the investments already made. • Taxable Bonds
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4.
Fixed Deposit
Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilized are governed by the Companies Act under Section 58A. These deposits are unsecured, i.e., if the company defaults, the investor cannot sell the documents to recover his capital, thus making them a risky investment option. Benefits of investing in Company Fixed Deposits are as follows:• High interest. • Short-term deposits. • Lock-in period is only 6 months. • No Income Tax is deducted at source if the interest income is up to Rs 5,000 in one financial year. • Investment can be spread in more than one company, so that interest from one company does not exceed Rs. 5,000 Company Fixed Deposits are a mixed bag, where most investment choices arise. Company FDs can be an interesting investment option if you know how to select the right FDs, and how to avoid the no-so-good ones. Here are some of the points that investors should keep in mind.
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• Spread your risk :The deposits should be spread over a large number of companies engaged in different industries. This way, you'll be able to diversify your risk among different companies. Try not to put more than 10% of your total investments in one particular company. • Choose the right period of deposit:Ideally, the investment should be for 1 to 3 years depending upon the rate of interest. • Periodic review:The performance of the companies should be reviewed at maturity. This will help you decide whether to renew or reshuffle the deposit. It is also wise to keep a track of these companies by checking their share prices, annual reports and other details reported in newspapers.
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5.
IPO’s
IPO (Initial Public Issues) of good and growing companies keep on coming in the market. History shows investors who bought equity shares of reputed companies during their initial public issues have now become rich and prosperous. IPO means, it is an acronym for Initial Public Offering, which is the first issue of a company’s securities. Generally daring IPO units are offered at par.
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6.
Real Estate
Intelli Realty is the group concern of Bajaj Capital Group (pioneer in financial advisory and serving to society since 1965) and is one of the fastest growing consultant/service providers in commercial, residential, industrial real estate in India. Bajaj Capital offers the most comprehensive services portfolio in the industry. They have a team of top notch professionals & expertise who keeps their eyes on market trend and changes which enable us to upper hand than other Property consultants/Service Providers. They always focus on their clients and theirs requirement and committed to provide the best deal to them. Bajaj Capital’s work is not based on guess or assumption, "RESEARCH", is the only way we follow to accomplish our client's requirement of real estate. They are supported by their property experts and extensive property and client database, which enable their professionals to access regional property opportunities and to pursue client interest in a cost-effective manner. Its clients include Locals, NRI's, HNI's Institutions they demonstrate the quality their deliver to them and they are the foremost choice to its existing clients and theirs choose it’s whenever they do any dealing in Real Estate.
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Insurance means identification and evolution risk on our life, health and assets. Insurance help us make provision for adequate coverage and protection or we can say that, insurance provides a cover against uncertainties like death, accidents, and financial losses etc. It also serves as an effective investment and tax saving tool. We can get insurance from an insurance broker. An Insurance Broker is a representative of the insurance buyer. The insurance broker does not represent any particular insurance company, unlike an agent. In India, insurance brokers have to comply with stringent laws, rules, regulations and an exhaustive code of conduct framed by the Insurance Regulatory and Development Authority (IRDA); which is aimed at protecting the interests of the insurance buyer. Bajaj Capital Insurance Broking Ltd. is an IRDA-approved 'Composite Insurance Broker" bearing license number CB 042/02. Insurance include two type of insurances i.e. • Life Insurance & • General Insurance
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1.
Life Insurance
Life insurance means that the protection or cover against our health, life etc. life insurance does not stop or finish our risk against accident & death but it give some relaxation by giving monetary help at the time of uncertainty.
Bajaj Capital give varies types of life insurance of varies
company’s. 2.
General Insurance
General insurance means that protection or cover against our assets like land, building, machinery, vehicles, house etc.
Bajaj Capital Ltd provides many types of general insurance of different kind of company’s some of them are as follows:-
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Insurance Company
Product Type
MOTOR TRAVEL
Product
AUTO SECURE TRAVEL GUARD ACCIDENT GUARD, SECURED FUTURE PLAN BUSINESS GUARD, HOME SECURE, SCHOOL PACKAGE CAR INSURANCE TRAVEL PLAN HEALTH GUARD SILVER HEALTH PERSONAL GUARD HOUSEHOLDER'S POLICY, SHOPKEEPER INSURANCE, OFFICE PACKAGE, WEDDING INSURANCE HEALTH SHIELD GOLD HOMESHIELD ACCIDENT SHIELD CAR INSURANCE HEALTH TRAVEL CAR CAR INSURANCE HEALTH FIRE MARINE GROUP TRAVEL GROUP PA FIRE MARINE CAR INSURANCE MEDICLAIM CAR OVERSEAS MEDICLAIM HOME OFFICE FIRE MARINE
TATA AIG
ACCIDENT MISC. MOTOR TRAVEL HEALTH
BAJAJ ALLIANZ ACCIDENT MISC.
HEALTH ROYAL INSURANCE HOME ACCIDENTAL MOTOR ICICI LOMBARD
IFFCO TOKIO
HDFC CHUBB
PSU's – NEW INDIA UNITED NATIONAL ORIENTAL
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1.
Individuals
Why do you need an Investment Advisor and Financial Planner? Why do you go to a doctor when you fall ill? Or, visit an architect when you want to build your house? It’s because they are specialists in their respective fields. Similarly, an investment advisor is a qualified and experienced specialist who is capable of advising you and managing your money. The growing complexities of the money market and the panoramic range of financial instruments make financial planning and money management an intimidating task for the average person – that’s why you need a reliable investment advisor and financial planner. Bajaj Capital, one of India’s oldest Investment Advisory organizations, offers you comprehensive and scientific Investment Advice. With our experience of over four decades, we are perfectly poised to offer you the best possible investment advice. Bajaj Capital have qualified, trained and experienced investment advisors who have in-depth knowledge of the financial markets. These investment advisors are backed by a team of investment researchers at the Bajaj Capital Centre for Investment Research, who keeps track of every minute change in the market, every new product and the latest investment trends. This is what provides Bajaj Capital’s Investment Advisory Service its cutting edge. What’s more, Bajaj Capital’s Investment Advisory Service is offered absolutely FREE! And that’s not all. We also offer FREE Investment Assistance – that means no hassles either!
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2.
Corporators & Institutions
Bajaj Capital offers specialized services to Corporate and Institutions through the La Premier Institutional Advisory Group. It is a strategic service arm comprising handpicked professionals that provides an exclusive and world-class service to a select group of clients. Bajaj Capital has a presence in all Metros in India, and an annual mobilization of over Rs 15,000 corers. Our Assets Under Management (AUM) is to the tune of Rs 3,200 corers, and we enjoy the patronage of over 750 quality relationships. For corporate & institutions Bajaj Capital Ltd provide basically two types of services i.e. • Investment Advisory Services. • Risk Management Services.
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3.
High Net Worth Individuals
Our interactions with hundreds of High Net worth Individuals and family-owned businesses have helped us to understand the special needs and requirements of such investors. Bajaj Capital La Premier was created to cater to the needs of High Net worth Individuals. It is a specialized group comprising handpicked professionals that provides exclusive and world-class wealth management services to a select group of clients. • Exclusive Services:-
Essentially, our Wealth Management Services aim to help you preserve, enhance and grow your wealth by implementing the wellaccepted principles and global best practices on wealth management. To cater to the elite segment of High Net worth Clients, La Premier offers an exclusive range of value-added service, including: • Personalized attention through a dedicated Relationship Manager • Market information sharing through quality in-house research reports, made available at regular intervals • Periodic portfolio review and regular update on portfolio valuation • Pro-active advice on market events and triggers. • Immediate alerts on new products and New Fund Offers • Need-based interactions with Fund Managers and other financial experts like Tax Experts, Estate Planners, etc. • Independent, unbiased advice
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Bajaj Capital’s Family Service/Office:This service is specialized for family owned business. Family-owned businesses have their own specific needs. The Bajaj Capital Family Office has been created to especially to serve family-owned businesses. Bajaj Capital is the first to introduce this elite service in India. Bajaj Capital offer to share with you the global best practices related to accumulation, enhancement and preservation of wealth, and make available the expertise of the crème de la crème of our pool of specialists. A dedicated Wealth Enhancement Manager will be assigned to offer exclusive and personalized service to you. Bajaj Capital provides world-class services in areas like Wealth Management, Risk Management, Investment Banking, Estate Planning, Taxation, and the like.
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4.
NRIs
Bajaj Capital gives Investment Opportunities for Non-Resident Indians (NRIs). NRIs can make direct investments in proprietary/partnership concerns in India as also in the primary issues of shares/debentures of Indian companies. They can also make portfolio investments, i.e. purchase of shares/debentures of Indian companies through stock exchanges in India. These facilities are available on both repatriation and nonrepatriation basis. In order to facilitate NRIs to set up new companies in India, the Reserve Bank of India (RBI) vides its Notification NO. FERA 143/93 RB dated 26th April 1993, has granted general permission to NRIs to subscribe to the Memorandum and Articles of Association and to take up the shares of Indian companies for their incorporation. The general permission empowers such Indian companies to issue shares to NRIs, provided that the company is not engaged into activity relating to agricultural and plantation.
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•
Direct Investment:-
NRIs are permitted to make direct investment in partnership/ proprietorship concerns in India as also by way of subscription to shares/ debentures of Indian companies. They are also permitted to place funds in company deposits. Investments made will either be on repatriation or on non-repatriation basis depending on the terms and conditions applicable under the existing schemes for NRI investment. Wherever the investments are allowed with repatriation benefits, the funds for the purpose should be received by inward remittances from abroad or from the investor’s NRE/FCNR Accounts. However, in respect of investment on non repatriation basis, funds in NRO Accounts could also be used.
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5, Portfolio Investment
NRIs/OCBs have to obtain prior permission of RBI to acquire shares/debentures of Indian companies and units of domestic Mutual Funds on both repatriation and non-repatriation basis through stock exchanges in India. The application for permission is to be submitted to RBI through a designated Bank branch in one of the prescribed forms. RBI approval is valid for a period of 5 years from the date of issue. Regulations regarding Portfolio Investment (i.e. investment through Stock Exchange) in shares/debentures by NIRs /OCBs have been explained below: • Portfolio investments in shares/debentures by NRIs/OCBs are permitted only though designated branches of authorized dealers preferably located at centers having stock exchanges. Authorized dealers should inform the names of such branches to Central Office of Reserve Bank and obtain approval. • Non-resident investors can also authorize Indian residents or stock exchange brokers as their agents in India to purchase/sell shares on their behalf under the schemes but all transactions should be routed through the designated branch of authorized dealer.
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•
NRIs/OCBs will be permitted to make portfolio investment in shares/debentures (convertible and non-convertible) of Indian companies, with or without repatriation benefits provided the purchase is made through a stock exchange and also through designated branch of an authorized dealer. NRIs/OCBs are required to designate only one branch authorized by Reserve Bank for this purpose. Investment in equity shares and convertible debentures will be permitted subject to an overall celling of 10 per cent of the total paid-up equity capital of the company concerned; and 10 per cent of the total paid-up value of each series of the convertible debentures issued by the company concerned for all NRIs/OBCs taken together both on repatriation and on nonrepatriation basis.
• (I) (II)
• •
The purchase of shares and debentures under the scheme is required to be made at the ruling market price. NRIs/ OCBs intending to invest on non-repatriation basis should submit their applications in the prescribed form, through a designated branch of an authorized dealer to purchase shares/debentures of Indian companies, securities (other than bearer securities) of the Central or State Government and Treasury Bills on behalf of the NRI/OCB subject to the condition that the payment of such investment is received through inward
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remittance or from the investors NRE/FCNR/NRO/NRSR account.
The general permission granted by Reserve Bank would be initially valid for a period of five years. Authorized dealers may themselves renew the permission granted by Reserve Bank to individual NRIs as well as OCBs for a period of five years at a time. • NRIs and OCBs intending to invest with repatriation benefits should submit their application through a designated branch of an authorized dealer in prescribed form. Reserve Bank will grant general permission to the designated branch for purpose of shares/debentures of Indian companies, securities (other than bearer securities) of the Central or any other State Government and Treasury Bills subject to the conditions that: (a) The payment is received through an inward remittance in foreign exchange or by debit to the investor’s NRE/FCNR account. (b) Investment made by any single NRI/OCB investor in equity/preference shares and convertible debentures of any listed Indian company does not exceed 5% of its total paidup equity or preference capital or 5% of the total paid up value of each series of convertible debentures issued by it. (c) NRIs/OCBs take delivery of the shares/convertible debentures purchased and give delivery of the shares/convertible debentures sold under the scheme.
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The general permission granted by Reserve Bank will be valid initially for a period of five years. Authorized dealers may themselves renew the permission granted by Reserve Bank to individual NRIs as well as OCBs for a further period of five years at a time. • Shares/debentures purchased by NRIs/OCBs should be held and registered in the name of either the investor himself or an authorized dealer or the letters nominee/s. Shares/debentures can be purchased by NRIs in joint names with other NRIs with permission of Reserve Bank.
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Today, marketing is spread in every field of like, services, hospitals, goods even politics and many more. In service sector too the importance of marketing also can not measurable, still it has not developed in public sector it is only limited to foreign service sector and privet sector. The reason for success of foreign in India is only best marketing efforts. Today in service sector there is a cutthroat competition between other sector and privet financial service sector. Marketing is a human activity directs at satisfying the needs and wants of customers, there are five stages of financial marketing. Firstly marketing is advertising, sales promotion and publicity. Secondly, marketing is smiling and co-friendly atmosphere. Thirdly, marketing is innovation. Fourthly, marketing is positioning. When all financial service sector advertise and innovate, they look alike so, they should try to position themselves differently, even through symbols, logos or aggressive advertising so that the customer can distinguee between one service sector and another. And finally fifthly, marketing is analyzing, planning and controlling. At Bajaj Capital, through there is no specific marketing department for marketing of different services but providing best services to their customers and getting good customer satisfaction, and doing such efforts of marketing like, promotion activities, they are in directly getting benefits of marketing. Today they are also planning for such continuous marketing efforts and within the few years they will have aggressive marketing department.
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According to Philip Kotler, “Marketing is the process of planning, and executive the conception, pricing promotion and distribution of goods idea to create exchanging with target groups that satisfy customer and organization objective.” The concept of market is very much impotent in marketing. The American Marketing Associated defines, “A market as the aggregate demand of the potential buyer for product/service.”
CHAIRMAN
MR.K. K. BAJAJ
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MANAGING DIRECTORS
MR.SANJIV BAJAJ
MR.RAJIV BAJAJ
CHIEF EXECUTIVE OFFICER
MR. ANIL CHOPRA
National head (Avinash Shau)
Planning Life Fixed Financial insurance income (Sanjiv Kumar) (Harish Subbarval)
General
Mutual (Surjit mishra)
insurance fund (Vinay Tanuja) (Narendra Anand)
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The basis of marketing operation is the co-operation of four key variables namely,
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A product is any thing that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
Level of product:1. Core benefit: - The fundamental services or benefit that consumer is really buying. 2. Basic product: - The solution of the core benefit that the customer is really buying. 3. Expected product: - A set of attributes and condition buyer normally expect when they purchases the product. 4. Augmented product: - When the product exceeds the customer expectations. Bajaj capital provides wide range of product they provide all level of products.
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A product mix consists of the entire product & items that a particular manufacturer or marketer offers for sales. Bajaj capital provides a wide range of products that satisfies different need of the investors. ? Dimensions of the product mix
roduct mix width:- it refers to the no of different lines company carries. Product mix length:- it refers to the total no of items the company carries within the product line. Product mix depth:- it refers to the no of version offered by the each product in the line. Product mix consistency:- it refers to how closely relate the various product line are in end use production requirements. Eg. Distribution channel etc. Bajaj capital provide a wide range of products like mutual fund, life insurance, general insurance, fixed deposits, govt. securities etc. and all these product have their own length and depth. so it is difficult to show. We can get the exact idea about it by reviewing the site www.bajajcapital.com.
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“A set of interdependent organization involved in the process of making a product or service available for the use or consumption by the consumer or by the business users. Channel provides market information to the company about the market condition, Trend, investor’s preferences, competitor’s activity, changing taste of the investors etc. Channel helps by reducing the number of contact needs for reaching investors. Intermediaries find the investors and do the selling for the company. They supply in assortment. Channel does the job of combining product of different company for the sale. Channel handle the flow involved in distribution. Like physical flow of products. Ownership flow, risk flow, payment information flow.
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Channel level
• Direct marketing:Company • Indirect marketing:Advisory Network Group (ANG) investors investor
? Objectives of the channel:• Effective coverage of the target market. • Ensuring uninterrupted sales and promote other services. • Efficient distribution.
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“The promotion mix consists of the specific blend of advertising, sales promotion, public relations, personal selling and direct marketing tools that a company uses to pursue its advertising and marketing objectives. Components:• Advertising • Sales promotion • Public relation • Personal selling • Publicity The above given tolls are successfully used by the bajaj capital to strengthen the company position in to the competitive market. Mr. Anupam kher is the brand ambassador of the company. An advertisement plays an important role in the development and popularity of the company. the company try to satisfy the customer who buy or use the service offered by the Bajaj Capital Ltd. Bajaj Capital Ltd is using all media of advertisement such as newspaper, television, magazines, out door posters, banners etc. through that they getting the business. They are giving their advertisement in newspaper like Economics Times, Times of India and also in magazines like Investor India etc.
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Service sector marketing also uses sales promotion devices such as point of purchases, materials, advertising specialties (ball pens, calendars, diaries, notes pads etc.) brochures and booklets describing financial services like, mutual fund, IPO, etc. a services sector has also to build up and maintain its bright image in the community. Recently they have organized the reliance infrastructure fund NFO meet at hotel Silver Palace in Rajkot. By this way are using very simple and less expenses tools of marketing like, advertising and publicity. They are getting good response from the society.
Different activities done by bajaj capital to target the market are as follow:• Direct:• • • • • • • • • Investor meet Brochures distribution KNOP activity Advertisement in news papers Stall in malls SMS campaigning Material distribution Tele marketing Call calling etc.
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• ANG:• Meeting of ARN holders etc. Bajaj Capital Ltd. is doing personal selling and also indirect marketing through brokers. BCL is believed in very strong goodwill and also best customer satisfaction by proving best service to the customer. Bajaj capital believes in good public relation . They have also a good corporate image.
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Push:- Efforts to convince channel intermediary to stock the company product. Pull:- Efforts direct at end users to induce them to buy the company’s product
? STRATEGY:Company
TRADE PROMOTION
ANG SALES PROMOTION (BROKERS)
INVESTORS
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To day as we know that due to globalization all the business units are facing global competition and also other domestic companies are also in the competition. Bajaj capital also facing competition .their competitors are Marvadi group, Karvi group, Ajay Natvarlal securities and M j advisor.
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“Market segmentation is the process of dividing a market in to distinct subgroups of consumers with distinct needs, characteristics, or behavior, who might require separate products or marketing mixes.” • Geographic • Demographic • Psychographic • Behavioral Bajaj capital has done its segmentation psychographic it includes social class and also behavioral it includes benefits.
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The process of evaluating each market segments attractiveness and selecting one or more segments to enter. Bajaj capital has selected “full market coverage” as a market segmentation they attempts to serve all customer groups with all the products they might need. As we know that they are largest financial product provider in the country.
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Good marketing decisions are not made in a vacuum. Hence, even in service sector marketing. We need marketing research and information to enable service sector’s executive to make sound decisions. The increase in the use of marketing research in service sector marketing is due to two forces; one is competition pressure to be right, and customer-orientation in marketing planning and program. Financial service sector are now establishing separate marketing organization. Conduction marketing research, setting up sales training program and adopting sales promotion divides promotion devices to attach customer, we have special BCL advertisement through T.V. and Newspapers. Marketing may be defined as, “The scientific and controlled process of gathering of none routing marketing information, helping management to solve marketing problems.” As far as it concerned with the marketing research process at Bajaj Capital Ltd. they have been continuously doing such research from beginning. But one positive point for marketing research is that they not doing any big expenses for marketing research and for executives. Bajaj Capital’s staff member themselves goes to market and gathers applications of different investments from the customers or through the brokers. So, by this way they are getting benefits by using marketing research process and the great investment of customers.
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Finance is the fuel of administration. Without adequate financing any business enterprise can’t raise its potentials for growth and success.
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And it would be worthwhile to recall what “Henry Ford” once remarked, ‘Money is an arm or leg. You either use it or lose it’. This statement through apparently simple and quite meaningful, it brings home the significance of money or finance. In the modern money oriented economy finance is one of the basic foundations of all kind of economic activities. Finance management is needed the key to successful business operation. Without proper administration and effective utilization of finance, any business enterprise can’t utilize its potentials for growth and expansion. Organization and control of these functions is important for all types of business unit. Especially in public undertaking massive investment has so far been much less productive, it is necessary to organize the finance functioning such a manner that should help the business in achieving its basic objective with minimum cost. According to Hoagland “Financial management is concerned mainly with such matter as how of Business Corporation raises its finance and how it make use of that.”
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Planning is necessary for the smooth running of the business cannot be carried on without planning. Planning means deciding in advance what is to be done for each area should link to objectives of the organization. Financial planning means deciding in advance the financial activities to be carried on to organization. So, the basic purpose of financial planning is to make sure that adequate funds are raised at minimum cost and they are used widely. Proper planning of the business organization on one hand and on the other hand to allow a fair return to their contribution. Thus financial planning includes the following……. • Determination of financial objectives. • Formation of financial policy. • Development of financial procedure. In Bajaj Capital Ltd., the financial planning has been done through proper management in varies areas like liquidity planning, investment planning, profit planning, cash management, etc.
Capital structure decision is yet another important are under financial management. Capital structure refers to the mix or proportion of
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firm’s permanent long term financing represented by debt preference must ensure the maximization of wealth of shareholders so even the capital structure decision must be taken in light of wealth maximization objectives. That particular debt and equity which maximizes the value of the firm, is known as optimum capital structure in simple word capital structure to the composite of capital. CAPITAL STRUCTURE = Long Term Debts + Preference Share Capital + Equity Share Capital + Reserves.
Cash is the medium of exchange, which allows management to carry on the various activities of the business day-to-day basis. And
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management of cash is one of the most important answers of over all working capital management due to the fare there cash is most liquid type of current assets. As such it is the responsibility of the finance to see that the various functional area of the business have sufficient cash were over they require the same at the same time if has also it be ensured that funds are not blocked in the form of idle cash as the cash remaining idle also involves cost in the form of interest cost and opportunity cost as such the management of cash have to kind a mean between these two extremes of shortage of cash as well as idle cash. The basic objectives of cash management of are to reduce the operating cash balance requirement to maintain possible extent without affecting the routine transaction. For the management of cash flow statement is the most important tool cash low statement provided information about the cash ratio and payment of a firm for again period. It provided important information that compliments the profit and loss account and balance sheet.
A financial analysis of an organization depends to a large extent on the use of ratios. The techniques are commonly known as financial ratio analysis. Ratio analysis is a very powerful analytical tool useful
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for measuring performance of an organization the ratio analysis helps the management to analysis the past performance of the firm and to make further projection. Ratio analysis is a process of comparison of an figure against the calculation of ratio relatively easy and simple task but the proper analysis and interpretation of the ratio can be made only be the skilled analysis.
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Human resource management in any organization, it may be public, privet or co-operative constitute, perhaps the most vital assets of that organization. An organization will fail if its HR management is not competent to execute the work assigned to them. There is no getting
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away from fact that personnel management represent a subsystem which dominants all other subsystem to the organization. Moreover, people are the only assets of an organization that appreciate over a period of time while all the other assets depreciate. The more an organization is investing in HR management, the greater the return from the investment is likely to be and it has been rightly pointed to in one of the books of inter national co-operative alliance, “The gains accruing out of structural reforms can be best capitalized only it the personnel maintained by the co-operative institution are in a position to execute the policies effectively.” This implies the need and necessity of proficient capable HR management, which is one of the primary aims of the HR management. According to national institute of personnel management of India, “HR management concerned with people at work & with their relationship within the organization it seeks to bring together men & women who make you an enterprise enabling each to make his own best contribution to its success both as an individual as a working group.”
A sound foundation for selection of the right kind of HR management is laid with the formulation of sound personnel policies. A personnel policy can be defined as, “A body of principles and rules of conduct that governs the enterprises in its employees. Thus, the sound personnel policies set the time for proper administration of the
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personnel programmers, so as to achieve the objective of the organization.” Bajaj Capital Ltd is one of the leading financial service sectors though its performance is very good but than also such policies for personnel management they cannot make by their own. It has to follow the rules of policies given by the government. So in the matter of the personnel policies BCL is restricted to some level. Than also the BCL has adopted a policy of recruiting only graduate and MBA for their management level. The next important stage in the selection process is the HR management planning. “Planning applied in the field of personnel”. It is the comprehensive and on going process. In Bajaj Capital there is very educated staff as it is concerned with the HR management planning recently they has adopted policy for selection only MBA, graduate and AMFI registered for their personnel has as far as concerned with the HR management planning. There is no long term planning but at a time or requirement of staff they used to recruit staff either out side or from with in the firm through transfer or promotion.
Among the function of personnel manager, one man function is to procure best people for their organization, means search of prospective employees to suit the job recruitment. A firm has to pass through well and good recruitment process for having best HR management this recruitment can be possible through many sources.
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A firm can recruit proper candidate mainly through two success recruitment sources these are as under. Recruitment Sources Internal sources (1) Transfer (2) Promotion (3) Relative & friends External sources (1) Advertisement (2) Educational Institutes (3) Placement Agencies (4) Labour Contract
In case of BCL, the main source or recruitment is daily newspaper advertisement. They also recruit employees by transfer and promotion. Generally as per the recruitment of the job they give advertisement in news and collect the pool of application.
Managing people is not easy but it can be made easier if you make sure that you have selected the right people in the right place. And also it said, “Selection of people is easy but selection of right people is difficult task.”
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The selection procedure is concerned with securing relevant information about an applicant is secured. The objective of selection process is to determine whether the applicant meets the qualification for specific job and to choose the applicant who is choose the applicant who is most likely to perform well in that job. Thus an effective selection program is a non-random process because those selected had been choose on the basis of the assumption that they are likely to be “better” employees then those who have been rejected. Selection process or activities typically follow a standard pattern being with an initial screening of applicant, interview and concluding with final employment decision. The selection procedure of Bajaj Capital Ltd is comparatively simple. The stages of including in the selection process are as follow:
Newspaper Advertisement
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Receipt of Application
Screening
Arrangement and Interview
Selection
Placement and Confirmation
After the selection of employee, management of the firm has to pass through such process. So new employee can be aware of the atmosphere of the firm and also can be familiar with the other employee. This process called orientation or induction.
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In any organization this process performs very initial role because this is the only process, which can create better environment in the organization, and a new comer can be aware about his working condition, his area of responsibility and everything about organization. Proper orientation process can be beneficial to both, a newcomer as well as organization.
Once an employee has been selected he should be placed on a suitable job. Putting the right man at the right job is as important as hiring the right person. Placement is a process of assigning a specific job to each one of the selected candidates. It involves assigning a specific job to each one of
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the selected candidates. It involves assigning a specific rank of and responsibilities of an individual. It implies matching requirement of a job with the qualification of a candidate. In other words, “placement is the determination of the job which an acceptable candidate is to be assigned and his assignment to the job.” Bajaj Capital Ltd. is very careful about this process. And one is that, at the time of requirement only they hire new employees. So hire it is specified that for which job they are recruiting. After the final selection, they have been marking the job of the new employee.
Remuneration is the compensation of an employee receives in return for his or her contribution to the organization. Remuneration occupies an important place in the life of an employee. Standard of living of employee states in the society, motivation, loyalty and productivity depends upon the remuneration.
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For the employee remuneration is significant because of its contribution to the cost of production. For personnel management, remuneration is the major function. The HR specialist has a difficult task of fixing wages and wage differentials acceptable to employee and their leaders. There are mainly three components of employee remuneration. These are as follows: • Wages and salary, • Incentives and • Non-monitory benefits. As far as it is concerned with the Bajaj Capital Ltd., there is specific policy of employee remuneration formed by govt. and SEBI, and itself also. So, the management of employee remuneration there is a specific administration department, which cares of wages and salary and all things about remuneration.
•
Wages & Salary:-
Wages represent hourly rates of pay and, salary refers to the monthly rates of pay irrespective of the number of hours put by an employee. Wages and salaries are subject to annual increments they differ from
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employee to employee and depend upon the nature of seniority and value. • Incentives:-
Incentives are also called “payment by result” are paid in addition to wages and salaries. Incentives depend upon productivity, sales, profit or cost reduction efforts there are individual incentive schemes and group incentive program. Individual incentive are applicable to specific employee are applicable to specific employee performance. Where a given task demands group effort for completion, incentives are paid to the group as a whole. The amount is later divides among incentives refer to variable rewards granted to the individual in terms of changes in specific results in organization setting besides wages and salaries, employees are paid incentives depending upon their performance. Incentive payment is quite substantial and is paid as regular as wages and salaries. The primary advantage of incentives is the inducement and motivation of workers for higher efficiency and greater output. It option schemes and the like perquisites are offered to retain competent executives.
•
Non-monitory Benefits:-
These include challenging job responsibilities. Recognition of merit, growth prospects, components supervision, comfortable working condition and job sharing.
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As far as Bajaj Capital Ltd. is concerned that is specified department who cares about employee remuneration. Apart from salaries they are also provides bonus (one month salary) also provides provident fund scheme and gratuity.
Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people learn knowledge and skills for a benefit purpose. The purpose of
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training is basically bridge the gap between job requirement and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending or continuous process. In any organization there should be proper training program to improve employee resources, as well as organization development. Training involves helping an individual learn hoe to perform his present job satisfactorily. On the other hand development is long term education process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and the critical knowledge for general purpose. So in the any organization the importance of the training and development is very vital, nobody can ignore it. It is a continuous process. Bajaj Capital Ltd. is working with advanced technologies. So its every step better training and development is required.
Mobility and flexibility in the workforce are necessary to cope with the changing requirement of an organization. Job changes provide necessary flexibility, employees move from one job to another one
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through transfer, promotion. So, the importance of employee’s promotion with their ability, knowledge, etc. in the organization in very important. ? PROMOTION:-
Promotion refers to advancement of an employee to a higher post carrying grater responsibilities higher status and better salary. It is upward movement of an employee in the organization’s hierarchy to another job commanding grated authority higher status and better working condition when an employees is assigned a higher level job with more pay and powers he is said the promoted promotion may be temporary or permanent depending upon the need of the organization. So this just like tool which can be useful in two ways i.e. it is a motivation and second way it becomes a source of recruitment from with in an organization so the promotion in an organization that who is present as other activities. In case of Bajaj Capital Ltd as it is service sector they have to follow promotion policy of its merit cum seniority in case of promotion they are independent. TRANSFER:-
?
A transfer refers to horizontal or literal movement of an employee from on a job to another in the same or organization without any significant change in status any pay.
It has defined as “A literal shift causing movement of one individual to another”. Usually without involving any marked change in duties as responsibility will needed of compensation.
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The need for transfer may grid duo to several reason transfer tresses of which the following objective:• • • • • To satisfy employee need To better utilize employees To meet organizational need To adjust the work force To make the employee more versatile etc.
The transfer is beneficial many ways the benefits of the transfer is as under: • • • • • • Grater job satisfaction to employees Remedy for faulty placement Increase in productivity and effective need of the organization. Improve employees skill Develop employees for further promotions Stabilize fluctuation work needs
So, the transfer is also important as far as concerned with Bajaj Capital Ltd. there is no specific transfer policy but according to requirement & for convenience of the employee they used to make transfer.
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The research report includes the various aspects like object of research samples to be research, area of research, in research procedure instrument of research and the ultimate result and analysis. So, it is necessary to fulfill those objects that have been decided at the time of making research. This research report is based on the topic called “AWARENESS OF MUTUAL FUND”. Dividing the whole population in different segments of income level has done this research report the analysis. It was predetermined to give more emphasis on target market like businessmen, profession and govt. employees. The objects were the same for all segments like… • To identify the target market for mutual fund products. The main target was on those who work in Pvt. Ltd. co., govt. employees, etc. • To identify the problems of self employed individual with or without formal income proof such as I.T. Benefits. • To identify the awareness of consumer towards the mutual fund. • To identify in which mutual fund customer more invest.
• To find out which income level people invest in mutual fund more.
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What are 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.
Why choose Mutual Funds ?
Investing in Mutual Funds offers several benefits:
Professional expertise: Fund managers are professionals who track
the market on an on-going basis. With their mix of professional qualification and market knowledge, they are better placed than the average investor to understand the markets
Diversification: Since a Mutual Fund scheme invests in number of
stocks and/or debentures, the associated risks are greatly reduced.
Relatively less expensive: When compared to direct investments in
the capital market, Mutual Funds cost less. This is due to savings in brokerage costs, demat costs, depository costs etc.
Liquidity: Investments in Mutual Funds are completely liquid and
can be redeemed at their Net Assets Value-related price on any working day.
Transparency: You will always have access to up-to-date
information on the value of your investment in addition to the complete portfolio of investments, the proportion allocated to different assets and the fund manager’s investment strategy.
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Flexibility: Through features such as Systematic Investment Plans,
Systematic Withdrawal Plans and Dividend Investment Plans, you can systematically invest or withdraw funds according to your needs and convenience.
SEBI regulated market: All Mutual Funds are registered with
SEBI and function within the provisions and regulations that protect the interests of investors. AMFI is the supervisory body of the Mutual Funds industry.
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is the process of gathering, recording, and analysing of critical and relevant facts about any problem in any branch of human activity.” Market research and marketing research are two different terms where market research means the systematic and intelligent of the “who, what where, when, why and how of actual and potential buyers. Where as Marketing Research means a systematic gathering, receiving and analyzing the data about problems connected to market. It is usually for problem solving, usually deals with strategic planning. As we understood that market research and marketing research both are distinguished with each other. The primary and main difference is about the concept. The market research has narrow concept as it only involves the research about the market and consumer where as marketing research is a broad concept and having a characteristics of problem solving. “Marketing research is a systematic design, collection, analyzing, and reporting of data and findings relevant to a specific marketing situation facing the company.” Marketing managers often commission formal marketing studies of specific problems and opportunities. They may request a market survey, a product preference test, a sales forecast by region, or an advertising evaluation. It is the job of the marketing researcher to produce customer insight into the problem. Small companies can hire the services of a marketing research firm or conduct research in creative and affordable ways. Such as, checking out rivals, using the Internet and engaging students or professors to design and carry out projects.
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“Research
It is inherent in human life to have some aim behind any activity. Even every life has got its own goal. To study the BAJAJ CAPITAL LTD. was not only the requirements of the academic study. There was a curiosity to understand the newspaper industry. Almost every Indian and why only Indian? All human beings, irrespective of any country have become habituated invest money. investment have become a part of our life. People of saurashtra have habit invest money in stock gold and mutual fund. A life without an investment & saving creates the feeling of vacuum in our day to day life.
I was curious to understand:
? ? ? ? The marketing management of such high return in mutual fund. Nature of competition Aim with which other competitors are working Different strategies to increase market share.
The research objectives should be carefully set based on right problem definition. The marketer faces a problem. A proper problem definition facilitates setting up research objectives in a more lucid manner. The research objective gives answers to queries like, ‘What is the purpose of this study?’, ‘Would attainment of research objective help solve the marketing decision dilemma the researcher faces? etc. If yes, research objectives can be said it have been developed. A well developed research objective is an essential pre-requisite for market research success in solving marketers problems.
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OBJECTIVE SET FOR PRESENT STUDY ARE TO FIND
• CONSUMER AWARENESS OF MUTUAL FUND OF BAJAJ CAPITAL • To know which criteria people consider while selecting mutual fund. • To know the investment priority of the people.
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DEFINING THE PROBLEM AND RESEARCH OBJECTIVES DEVELOPING THE RESEARCH PLAN COLLECTING THE INFORMATION ALALYSING THE INFORMATION PRESENTING THE FINDING
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The research design is a component of the research plan where various types of research carried is planned. Based on cost benefit and risk involved, the type of research design is chosen which would give solutions to the marketing problem at hand. The design of research study is based on the purposed of the study; if descriptive information is needed, then a quantitative study is likely to be undertaken; if the purpose is to get new ideas, then a qualitative study may in order. QUANTITATIVE RESEARCH DESIGN :This design includes the method for collecting the data, the sample design and the construction of data collection instrument. DATA COLLECTION METHOD :There are three basic ways to collect primary data in quantitative research; by observing behavior, by experimentation or by survey. I have selected the survey method by preparing a questionnaire and then randomly selecting 100 people to fill the questionnaire. I have also done telephonic short interviews with the advertisers. My data collection instrument i.e. questionnaire was interesting and very objective and easy to complete. It was close ended type.
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The research plan calls for gathering secondary data, primary data, or both. Secondary data consists of information that already exists somewhere, having been collected for another purpose. Otherwise the researcher has to gather primary data, which consists of original information for the specific purpose at hand. PRIMARY DATA The primary data used for my study are questionnaire – containing questions regarding MUTUAL FUND AWARENESS and about BAJAJ CAPITAL’s mutual schemes. Interviews for information from C.R.M.& Branch Head,MR. Hardik kothari and other employee of BAJAJ CAPITAL. SECONDARY DATA The secondary data was available from: ? ? ? ? Prospectors Bajaj Capital’s Record Internet Other company records
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There is two methods for sampling. It is called sampling methods. They are (1) probability sample method and (2) non probability sampling method. Now we discussed each method in detail. • PROBABILITY SAMPLE: 1. Simple random sample: Every number of the population has an equal chance of selection. 2. Stratified random sample: The population is divided into mutually exclusive groups and random samples are drawn from each group. 3. Cluster sample: The population is divided into mutually exclusive groups and the researches are draws a sample of the groups to interview • NON PROBABILITY SAMPLE: 1. Convenience Sample: The researcher selects the most accessible population members. 2. Judgment sample: The researcher selects population members who are good prospects for accurate information. 3. Quota sample: The researcher finds and interviews a prescribed numbers of people in each of several categories. The research on the topic called “CUSTOMER AWARENESS OF MUTUAL FUND” is done by using Non-Probability sample and under the head of Quota Sampling.
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• SAMPLING UNIT: The target population was divided into three segments i.e.
• Business Man • Govt. employee • Professional
Things like needs, its fulfilment and suggestions of all segments were collected for making this research success. • SAMPLE SIZE: About 100 people from different segment i.e. businessmen, govt. employees, professionals, etc. were taken as a sample size. As we know that large sample gives more reliable data but here because the population was divided in three segment such thing was made possible. • SAMPLING PROCEDURE: During my training days, I have divided the total time of training as per the requirement. It means any concern segment. If the population is high the more time was research for it. For e.g. the number of businessmen who has been taken as one of the target customers was high rather than other segments. So, the duration of research for different segment was decided as per requirement.
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? ?
QUESTION (1) GENDER :
Male [ ]
Female
[ ]
OBJECTIVE: objective behind asking gender of the people is that whether they are male or female. So we can know about their investment capacity. FINDINGS:
Particulars
Male Female
?
No. Of Sample Sample in %
73 27 73% 27%
Total
100
100%
?
CHART:
6% 13% 0% 4% 26% SELF STUDY RELATIVES EXECUTIVES ADVERTISEMENT FINANCIAL INSTITUES OTHER SOURCE
51%
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?
ANALYSIS :
Out of total sample of 100 people 73 were male and 27 were female. So, 73% were male and 27% were female.
?
QUESTION (2)
Age
?
OBJECTIVE : to know about the age of people so we can know about their interest in Mutual fund investment. FINDINGS:
Particulars
20-40 40-60 60 or more
?
No. Of Sample Sample in %
63 24 13 63% 24% 13%
Total
100
100%
?
CHART:
13%
20-40
24%
40-60 60 or more
63%
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?
ANALYSIS :
Out of total sample of 100 people 63% were between age of 20 to 40, 24% were between age of 40 to 60, 13% were age of 60 or more. ? QUESTION (3) OCCUPATION:
Business [ ] Govt. Employee [ ] Profession [ ] Others
?
Student [ ]
OBJECTIVE: To know about the occupation or profession of the
business.
?
FINDINGS:
Particulars
Businessmen Govt. Employee Professional Student Others
No. Of Sample Sample in %
33 21 32 7 7 33% 21% 32% 7% 7%
Total
100
100%
?
CHART:
7% 7% 33% Businessmen Govt. Employee Professional Student 32% Others
- 111 21%
?
ANALYSIS :
Out of total sample of 100 people 33 were business men, 21 were government employee, 32 were profession person, 7 student and 7 were included others category i.e. teachers, workers trust members etc. ? QUESTION (4) YOUR ANNUAL INCOME:
Upto 50,000 1,00,000 to 2,00,000
?
[ ] [ ]
50,000 to 1,00,000 [ ] 2,00,000 or more [ ]
OBJECTIVE:
know about which level income people invest more in mutual fund. Another thing is that to know about that how much savings done by the higher-level income people in mutual fund. ?
FINDINGS:
No. of Sample 7 29 41 23 100 Sample in % 7% 29% 41% 23% 100%
Annual Income UPTO 50,000 50,001 to 1,00,000 1,00,001 <= 2,00,000 2,00,001 and more than it Total
?
CHART:
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?
ANALYSIS :
Out of sample of 100 people 23% having income more than 2 lacs, 41% having the income more than 1 lac, 29%having the income more than 50,000 and remaining 7% having the income less than 50,000. ? QUESTION (5) DO YOU INVEST YOUR SAVINGS?
[ ] YES
?
[ ] NO
OBJECTIVE:
To know about how many people invest his or her savings in mutual fund as well as other source of investment. ?
FINDINGS:
Particulars Yes No Total No. Of People 87 13 100 Sample in % 87% 13% 100%
?
CHART:
13%
Yes No
- 113 87%
?
ANALYSIS:
Out of sample of 100 people 87% people invest their saving in different source of investment like… F.D., M.F., Stock Market, etc. and remaining 13% were not doing savings. ?
QUESTION (6): IF YES, THEN IN WHICH YOU ARE INTERESTED FROM THE FOLLOWING? ( RANK THEM )
Gold Stock Market Post Savings [ ] [ ] [ ] Mutual Fund Bank Savings Others [ ] [ ] [ ]
?
OBJECTIVE:
In reference to question 3, we know that 87 % people are investing their saving but in which sector they all are investing. From this question we know about the trend as well as thinking of the people’s mind. ?
FINDINGS
Sector GOLD MUTUAL FUND POST SAVINGS STOVK MARKET BANK DEPOSITE TOTAL No. Of People 8 22 6 41 23 100
8%
Sample in % 8% 22% 6% 41% 23% 100%
GOLD MUTUAL FUND POST SAVINGS STOVK MARKET BANK DEPOSITE
?
CHART
23%
RATING
22%
6% 41%
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?
ANLYSIS
Out of sample of 100 people their first preference for investment is, 22 % investing their savings in Mutual Fund, 23 % people investing their money in Bank Deposit, 41 % people investing in Stock Market, 6 % people investing their savings in other sources like… KVP, Post Office Schemes, etc. Remaining 8 % people investing their money in gold and real estate equally.
Term No. Of People Sample in % Long Term 37 37% Short Term 63 63% Total 100 100%
?
QUESTION (7) WHICH TIME PERIOD?
[ ] LONG TERM
Objective: From this question I know that current scenario of market that people in which term investing more.
[ ] SHORT TERM
?
FINDINGS:
?
CHART
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37% Long Term Short Term 63%
?
ANALYSIS
I found that out of 100 % people 37 % people invested in long run and remaining 63 % people invested in short term. I also knew that out of 37 % most of people invested their savings in more than 5 yrs investment schemes.
?
QUESTION (8)
ARE YOU AWARE ABOUT MUTUAL
[ ] NO
FUND?
[ ] YES
?
OBJECTIVE:
From this question I want to know that how many people aware of the Mutual Fund.
?
FINDINGS:
Particulars Aware Not aware Total No. Of People 67 33 100 Sample in % 67% 33% 100%
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? ?
CHART
33%
Aware 67% Not aware
ANALYSIS
Out of the 100 samples I found that 67 % know about mutual fund. But I also found that they all were not 100 % knowledge of Mutual Fun
?
QUESTION (9)
IF YES, HOW CAN YOU KNOW ABOUT
MUTUAL FUND?
By self study By relatives By executives [ ] [ ] [ ] From advertisement [ ] From financial institute [ ] From other source [ ]
?
OBJECTIVE:
From this question I want know that from which main source people come to know about Mutual Fund.
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?
FINDINGS:
SOURCE SELF STUDY RELATIVES EXECUTIVES ADVERTISEMENT FINANCIAL INSTITUES OTHER SOURCE TOTAL PROPLE (%) 5 5 15 20 10 2 57 Sample in % 9% 9% 26% 35% 18% 3% 100
?
CHART
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18%
4%
9% 9%
SELF STUDY RELATIVES EXECUTIVES ADVERTISEMENT FINANCIAL INSTITUES OTHER SOURCE
26% 34%
? ANLYSIS
Out of 48 people 9% people come to know about mutual fund by self study, 9% people come to know about mutual fund by relatives,26% people come to know about mutual fund by executives, 35% people come to know about mutual fund from the advertisement, 18% people come to know about mutual fund from the financial institute, 3% people come to know about mutual fund from the other sources like intenet.
?
QUESTION (10) IF YES, DO YOU INVEST IN MUTUAL
FUND?
[ ] YES [ ] NO
?
OBJECTIVE:
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From this question I want know that how many people investing in Mutual Fund.
?
FINDINGS:
Mutual Fund Yes No Total No. Of People 48 52 100 Sample in % 48% 52% 100%
?
CHART:
52%
48% Yes No
?
ANALYSIS
Out of 100 people I found that 48% were investing their money into mutual fund and 52% were not investing .
?
IF YES, WHAT % OF SAVINGS DO YOU INVEST IN MUTUAL FUND?
QUESTION (11)
Upto 25% [ ] 26 to 50% [ ] 51 to 75 % [ ] 76 to 100% [ ]
?
OBJECTIVE :
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From this question I want to know that of what % of savings people want to invest in Mutual Fund.
?
FINDINGS:
Investment from savings < 25 % 26 to 50 % 51 to 75 % 76 to 100 % Total No. Of People 18 12 12 6 48 Sample in % 37.5 25 25 12.5 100
?
CHART
13% 37% 25%
< 25 % 26 to 50 % 51 to 75 % 76 to 100 %
25%
?
ANALYSIS
Out of 100 people 48 were investing their money into Mutual Fund and out of it we found that 38% were investing upto 25% money from their saving, 25% were investing 26 to 50% money from their savings, 25% were investing 51 to 75% money from their savings, 12% were investing 76 to 100% money from their savings.
?
QUESTION (12) IN WHICH TYPE OF MUTUAL FUND DO
YOU INVEST?
[ ] Equity [ ] Balanced [ ] Debt
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?
OBJECTIVE:
Many people invest their money in different schemes of mutual fund. So, from this question I want to know that at which % of people doing investment more in which type of Mutual Fund.
?
FINDINGS:
Type of MF EQUITY BALALNCED DEBT Total No. Of People 12 24 12 48 Sample in % 25% 50% 25% 100%
? C HART
25% 25% EQUITY BALALNCED DEBT
50%
?
ANALYSIS
Out of 100,48 people who were investing their money into the Mutual fund from them 25% people investing their money into Equity Mutual fund, 50% people investing their money into the Balanced Mutual fund and 25% people investing their money into debt Mutual Fund.
?
QUESTION (13) IN WHICH MUTUAL FUND DO YOU INVEST?
Prudential ICICI Reliance [ ] [ ] Birla Sunlife [ ] TATA [ ] HDFC Other [ ] [ ]
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Kotak Mahendra
[ ]
SBI
[ ]
?
OBJECTIVE:
From the above question I want to analyze that in which mutual fund people want to invest more.
?
FINDINGS:
Name of MF Co. Prudential ICICI Reliance Kotak Mahendra Birla Sunlife TATA SBI HDFC Other Total No. Of People 5 12 2 4 8 6 10 1 48 Sample in % 10% 25% 4% 8% 17% 13% 21% 2% 100%
?
CHART
16%
14% Prudential ICICI Reliance Kotak Mahendra Birla Sunlife 32% TATA SBI
22%
11%
5%
?
ANALYSIS
Out of 48 people 10% were invested their savings into prudential ICICI mutual fund, 25% were invested their savings into reliance mutual fund , 4% were invested their savings into Kotak Mahendra mutual fund, 8% were invested their savings into Birla Sun LIfe mutual fund, 17% were invested their savings into TATA mutual fund, 13% were invested their savings into SBI mutual fund, 21% were invested their savings into HDFC mutual fund and 2% were invested their savings into other mutual fund. QUESTION (14) WHY DO YOU INVEST IN MUTUAL FUND?
?
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[ [
] Tax benefit ] Liquidity
[ [
] Higher return & safety ] Variety of investment
?
OBJECTIVE:
From the above question I want to know that how many people get the benefit of tax from investing in mutual fund or for the higher return or liquidity.
?
FINDINGS:
Purpose From MF TAX Benefit Higher Return Liquidity Variety of Investment Total No. Of People 34 12 0 2 48 Sample in % 71% 25% 0% 4% 100%
?
CHART
4% 0% 25% TAX Benefit Higher Return Liquidity 71% Variety of Investment
?
ANALYSIS
Out 48 people who invested their savings in the MUTUAL FUND out of them 71% people invested their money in mutual fund for the tax benefit,25% people
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invested their money in mutual fund for the higher return and 4% people invested their money in mutual fund for the investment.
?
QUESTION (15)
Yes [ ]
ARE YOU AWARE ABOUT BAJAJ CAPITAL? No [ ]
?
OBJECTIVE:
From this question I want to know that people want more lump sum investing or in systematic manner.
?
FINDINGS:
AWARE Yes No Total No. Of People 47 53 100 Sample in % 47% 53% 100%
?
CHART
47% 53%
Yes No
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?
ANALYSIS
Out of 100 people 47% people were aware about Bajaj Capital and 53% people were not.
?
QUESTION (16)
KNOW? By self study [ ] By relatives [ ] By executive [ ]
IF YES , THEN FROM WHICH SOURCE YOU COME TO From advertisement From financial institute From other source [ ] [ ] [ ]
?
OBJECTIVE:
From this question I want know that from which main source people come to know about Bajaj Capital.
?
FINDINGS:
SOURCE SELF STUDY RELATIVES EXECUTIVES ADVERTISEMENT FINANCIAL INSTITUES OTHER SOURCE TOTAL
6% 0%
PROPLE 0 2 12 24 6 3 47
4% 26%
Sample in % 0% 4% 26% 51% 13% 6% 100
SELF STUDY RELATIVES EXECUTIVES ADVERTISEMEN T FINANCIAL INSTITUES- 126 OTHER SOURCE
?
CHART
13%
51%
?
ANLYSIS
Out of 48 people 4% people come to know about mutual fund by relatives,26% people come to know about mutual fund by executives, 51% people come to know about mutual fund from the advertisement, 13% people come to know about mutual fund from the financial institute,6% people come to know about mutual fund from the other sources like internet.
?
QUESTION (17) OBJECTIVE:
DO YOU KNOW THE MUTUAL FUND SCHEAMES AVAILABLE AT BAJAJ CAPITAL? Yes [ ] No [ ]
?
From this answer I want to know that how many people aware about the mutual fund schemas available at Bajaj Capital.
?
FINDINGS:
AWARE Yes No Total No. Of People 43 57 100 Sample in % 43% 57% 100%
?
CHART
43% Yes 57% No
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?
ANALYSIS
Out of 100 people 43% people were aware about Bajaj Capital and 57% people were not.
?
QUESTION (18)
DO YOU THINK THAT MUTUAL FUND IS A RELIABLE SOURCE FOR INVESTMENT? IF YES, THEN WHY? IF NO, THEN WHY?
?
OBJECTIVE:
From this answer I want to know that how many people believe that the mutual fund is reliable source for investment or not and why.
?
FINDINGS:
Reliable Yes No Total
No. Of People 48 9 57
Sample in % 84% 16% 100%
?
CHART
16%
? ANALYSIS
Yes No
Out of 100 people 57% 84% people aware about the mutual fund and from them 84% people who invested their saving in the mutual fund they believe that the mutual fund is reliable source for investment because most of them
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think that in compare to stock market it is less risky, give more & fixed return and more beneficial than other. Other 16% people who not invested their money in mutual fund they believe that the mutual fund is not reliable source for investment because most of them think than investing in mutual fund is not as trustful than the invest in the bank & post deposits and they can get more return in the other investment than the mutual fund.
“To err is humane and to forgive is divine”. Concentrating on the first par, we can say that no body is 100% perfect in what he/she does. By knowingly or unknowingly he commit mistake. Along with the analysis of the data, we I have also tried to analyze the problem I have faces and the limitations that came on my way, which are as followed. • The respondents may not give correct answers due to personal bias. • The number of respondent of survey was 150 which were not enough for the study of this segment of market. • The research was limited to Rajkot City only so there is limitation of area for an appropriate analysis. • As I am not the expert in this field, the results may not be as perfect as it should be for the company to take any action related to this problem.
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• It is one of the many study and therefore doesn’t cover a large number of respondents and even grater area. Though there were some limitations in my way, than also I have tried my best level to bring out the right picture, which is nearly reflecting the true situation that is prevailing in the market.
It is essential for any research to make. Findings in relation with the objects set at the time of starting the research. The following findings are concluded at the end of the research and the further analysis has been done on the basis of such findings like… • • • The awareness of “Mutual Fund” has very less response. So the more promotional activities are left to be done particularly for this product. The influence of “Mutual Fund” can also increase with the family, friends, through advisors & more investment center. The concept of Mutual Fund is not broad because during the research I found that after sales service is not proper provided to the customer regularly. During the research I found that Govt. employees is investing in the mutual fund for the tax benefit & businessmen is doing investment in the mutual fund for the higher return and safety. I also found that the income level more than 1 lac is supposed to take entry in mutual fund. I also found that customer only investing which has high brand image like. RELIANCE, TATA, SBI, FRANKLIN TEMPLETON,ETC.
•
• •
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As per the research data I found that Mutual Fund is the reliable source for investment only the reasons that… • Higher Return • Less Risk • More Liquidity • Less Expenses, etc
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CONSUMER AWARENESS OF MUTUAL FUND OF BAJAJ CAPITAL
Dear respondent,
You are requested to fill up this form and to give your valuable opinion regarding the following question and that will be used for study purpose only.
Questionnaire
1. 2. NAME: _______________________________________________________ ADDRESS: _______________________________________________________ _______________________________________________________ 3. 4. 5. GENDER: Male [ ] AGE: ________________ Female [ ]
OCCUPATION: Business Profession [ ] [ ] Govt. Employee Others [ ] [ ] Student [ ]
6.
YOUR ANNUAL INCOME: Upto 50,000 [ ] 1,00,000 to 2,00,000 [ ] 50,000 to 1,00,000 2,00,000 or more [ ] [ ]
7.
DO YOU MAKE AN INVESTMENT FOR SAVINGS? Yes [ ] No [ ]
8.
IF YES, THEN FROM THE FOLLOWING IN WHICH YOU ARE INTERESTED? ( RANK THEM ) Gold [ ] Stock Market [ ] Mutual Fund [ ] Bank Savings [ ] Post Savings [ ] Others [ ]
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9.
FOR HOW MUCH TIME PERIOD YOU ARE INVESTING? Long Term [ ] Short term [ ]
10.
ARE YOU AWARE ABOUT MUTUAL FUND? Yes [ ] No [ ]
11.
IF YES, HOW CAN YOU COME TO KNOW ABOUT THE MUTUAL FUND? By self study [ ] By relatives [ ] By executive [ ] From advertisement From financial institute From other source [ ] [ ] [ ]
12.
DO YOU INVEST IN MUTUAL FUND? Yes [ ] No [ ]
13.
IF YES, THEN WHAT PERCENTAGE OF SAVINGS DO YOU INVEST IN MUTUAL FUND ? Upto 25% [ ] ] 26 to 50% [ ] 51 to 75 % [ ] 76 to 100% [
14.
IN WHICH TYPE OF MUTUAL FUND DO YOU INVEST? Equity [ ] Balanced [ ] Debt [ ]
15.
IN WHICH MUTUAL FUND DO YOU INVEST ? Prudential ICICI Reliance Kotak Mahendra [ ] [ ] [ ] Birla Sunlife [ ] TATA [ ] SBI [ ] HDFC Other [ ] [ ]
16.
WHY DO YOU INVEST IN MUTUAL FUND? Tax benefit Liquidity For Savings [ ] [ ] [ ] Higher return & safety Variety of investment For other purposes [ ] [ ] [ ]
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17.
ARE YOU AWARE ABOUT BAJAJ CAPITAL? Yes [ ] No [ ]
18.
IF YES , THEN FROM WHICH SOURCE YOU COME TO KNOW? By self study [ ] By relatives [ ] By executive [ ] From advertisement From financial institute From other source [ ] [ ] [ ]
19.
DO YOU KNOW THE MUTUAL FUND SCHEAMES AVAILABLE AT BAJAJ CAPITAL? Yes [ ] No [ ]
20.
DO YOU THINK THAT MUTUAL FUND IS A RELIABLE SOURCE FOR INVESTMENT? IF YES, THEN WHY? IF NO, THEN WHY?
THANKING YOU, PREPARED BY VYAS RACHANA M.
- 134 -
?
BOOKS:• Human Resource Management Management & Personnel
- K. Aswatthappa • Marketing Management
--- PHILIP KOTLER
• Finance Management - B. S. Shah • Personnel Management - C. B. Mamoria ? WEBSITES:
• www.bajajcapital.com • www.surveyconsole.com • www.google.com
?
OTHERS:
• Advisor Magazine published by Bajaj Capital Ltd. • Money Multiplying News published by Bajaj Capital ltd.
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doc_702004379.doc
In a demat account , shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a demat account for the purpose of transacting shares.
SERVICE SECTOR REPORT ON
The training is undertaken with the objective to study the overall organizational working in service sector company “BAJAJ CAPITAL LTD” and its departments in the organization. As a part of training I first trying to understand the all product of the company and along with this I also know about the services provided by “BAJAJ CAPITAL LTD”. In this project, I had tried to understand the functioning of a company and how it performs its work at different levels in the organization. Here, in these training I could learn a lot and got an immense practical knowledge of the firm by day to day observation. In the report, I have discussed about various departments of the organization which are Human Resource Management, Marketing, and finance department. These all department study made me compatible to understand and work out properly.
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As a part of research, I studied the “AWARENESS OF THE MUTUAL FUND”. In the research work first, I decided my criteria for the research work and through the questionnaire I collected primary data and also with the help of staff members of BAJAJ CAPITAL LTD. And secondary data was collected by using various books, pamphlets and website of the company. At last I given some suggestions and limitation of the study.
?
Research Objectives: • Consumer awareness of mutual fund at BAJAJ CAPITAL, Rajkot branch. • To know which criteria people consider while selecting mutual fund. • To know the investment priority of the people.
?
Research Design:
? Quantitative research design ? Steps in Sample Design:
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? Unit: The target population was divided into three segments i.e. Business Man Govt. employee Professional ? Sample size: 100 People ? Sampling Method: Non-Probability sample and under the head of Quota Sampling.
• • •
?
?
Sources of Data Collection: Primary Data: The primary data was collected through questionnaire – containing questions regarding MUTUAL FUND AWARENESS and about BAJAJ CAPITAL’s mutual schemes. Interviews for information from C.R.M.& Branch Head, MR.Hardik kothari and other employee of BAJAJ CAPITAL.
? Secondary Data: • • • • ? The secondary data was available from: Prospectors Bajaj Capital’s Record Internet Other company records Limitation:-
The research was limited to Rajkot City only so there is limitation of area for an appropriate analysis. • It is one of the many study and therefore doesn’t cover a large number of respondents and even grater area.
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?
Findings & conclusion
uring the research I found that Govt. employees are investing in the mutual fund for the tax benefit & businessmen is doing investment in the mutual fund for the higher return and safety. The awareness of “Mutual Fund” has very less response. So the more promotional activities are left to be done particularly for this product. The influence of “Mutual Fund” can also increase with the family, friends, through advisors & more investment center. As per the research data I found that Mutual Fund is the reliable source for investment only the reasons that… • Higher Return • Less Risk • More Liquidity • Less Expenses, etcSR NO.
1 2 3 TITLE PAGE
CONTENT
1
PAGE NO.
CERTIFICATE (Company) CERTIFICATE (College)
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4 5 6 7 8
PREFACE ACKNOWLEGEMENT DECLARATION EXECUTIVE SUMMARY RESEARCH METHODOLOGY GENERAL INFORMATION
2 3 4 5 6 10 11 12 15 16 18 19 20 22 23
? Introduction
? ? ? ? ? ? ? ? History Highlights Organizational Structure Size of Organization Form of Organization Mission, Aims and Objectives Significance of logo Bajaj Capital’s Philosophy
9
SERVICES ? ? ? ? ? Introduction Financial Planning Investment Insurance Investors
24 25 26 39 48 51 61 62 64 65 66 67 69 70 73 74 75 76 77 78 79 80 81 82 83
10
MARKETING DEPARTMENT ? ? ? ? ? ? ? ? ? ? ? ? Introduction Department Structure Market Mix Level of Product Product Mix Channel Production Mix Promotion Strategy Competitors Marketing Segmentation Target Marketing Research Information
11
FINANCE DEPARTMENT ? ? ? ? ? Introduction Financial Planning Capital Structure Cash Management Ration Analysis
12
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HUMAN RESOURCE DEPARTMENT ? ? ? ? ? ? ? ? ? ? Introduction HR Policy & Program Recruitment Selection Selection Process Orientation Placement Employee Remuneration Training and Development Promotion and Transfer
84 85 86 87 88 89 90 91 92 95 96 98 99 100 102 103 105 106 107 108 109 110 129 130 131 132 135
13
RESEARCH REPORT ? ? ? ? ? ? ? ? ? ? ? ? Introduction About Mutual Fund Market and Marketing Research Objectives of the Study Research Methodology Research Design Data Collection Sampling Design Sampling Steps Research Analysis Limitation of the Study Findings and Conclusion
14
ANNEXTURE 15 16 ? Research Instrument
BIBLIOGRAPHY
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Bajaj capital is a SEBI approved merchant bankers, investment advisor and financial planner. It has a track record of ethical dealings for the last 40 years and has had the honours of helping millions of investors achieve their life’s financial goals. It offers free advice on investment, insurance, tax saving, retirement planning, children’s future planning and other services. It has wide range of product &services for corporate high net worth individuals, and NRIs etc . It offers wide range of investment products such as mutual fund, life insurance, bonds, and post office schemes etc.offered by public, private and govt. organizations.
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It recognized as one of the largest fund mobilize in the country. The investors constitute a community of over 6,00,000 individual investors and over 2500 institutions like corporate charitable trusts, educational institutions, NGO’s and scientific research organizations.
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? IN 1964
BAJAJ CAPITAL has contributed to the growth of the Indian capital market at every step. In 1964, BAJAJ CAPITAL sets up its first investment center in NEW DELHI to guide individual investors on where, when & how to invest. [India’s first mutual fund, UNIT TRUST OF INDIA (UTI) is incorporated in the same year.
? In 1965
BAJAJ CAPITAL is incorporated as company in the same year the company introduces an innovative financial instrument is the company fixed deposit.
? In 1966
BAJAJ CAPITAL expands its product range to include all UTI schemes in addition to company fixed deposits.
? In 1969
BAJAJ CAPITAL manages its first equity issue of GRAUER &WELLS INDIA LTD; right from drafting the prospectus to marketing the issue.
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? In 1975
BAJAJ CAPITAL starts offering need based investment advice to investors which would later be known as ‘FINANCIAL PLANNING’ in the investment world.
? In 1987
SBI leads the launch of public sector mutual funds in India. BAJAJ CAPITAL plays a significant role in fund mobilization for all these players. After four years in 1991, SBI issues India Development Bonds for NRIs. BAJAJ CAPITAL also becomes the top five mobilizes with the collections of over US $ 20 million.
? In 1995
IDBI and ICICI being issuing their series of bonds for retail investors. BAJAJ CAPITAL is the co-manager in all these offerings and constantly ranks among the top five mobilizes on an all India basis.
? In 1997
BAJAJ CAPITAL consolidated its position as India’s largest retail distributor of mutual funds.
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? In 2004
BAJAJ CAPITAL obtains the all India insurance license. Simultaneously, a series of wealth creation seminars are launched all over the country, making BAJAJ CAPITAL a household name.
? In 2005
BAJAJ CAPITAL launches ‘360 degree financial planning’ software bases programmed aimed at encouraging scientific and holistic investing.
? In 2008
BAJAJ CAPITAL gets business sphere award titled ‘BEST INSURANCE BROKER’ was conferred by Shri sriprakash jaiswal honorable union minister of state for home affairs.
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Name of the company: LOCATION (IN RAJKOT):-
BAJAJ CAPITAL ‘PRATIBHA COMPLEX’ 1’ST FLOOR, MOTI TANKI CHOWK, RAJKOT. SERVICE PROVIDER PRIVATE LTD Mr. K. K. Bajaj
TYPE OF THE UNIT: FORM OF ORGANISATION: Chairman:
E-MAIL ADDRESS: WEB SITE: Ph NO: -
[email protected] www.bajajcapital.com (0281) 2693309, 2461843
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Organizations structures are mainly of three kinds. They are formed as per requirement of business unit.
They are as follows:• Line organization • Line & staff organization • Functional organization BAJAJ CAPITAL has selected functional organization structure. In this type of structure the authority flows from top to bottom and responsibility flows from bottom to top. The working of BAJAJ CAPITAL is very smooth because of chain of commands.
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ORGANISATION STRUCTURE
CHAIRMAN
MR.K. K. BAJAJ
MANAGING DIRECTORS
MR.SANJIV BAJAJ
MR.RAJIV BAJAJ
CHIEF EXECUTIVE OFFICER
MR. ANIL CHOPRA
NATIONAL HEAD (mf)
MR. SURJIT MISHRA
WEST ZONE
MR.JIGNESH PARIKH
EXECUTIVE VICE PRECIDENT
AREA MANAGER
MR.SHAILESH DEVDA
RAJKOT AHMEDABAD JAMNAGAR BRANCH MANAGER
MR HARDIK KOTHARI
BARODA
SURAT
MR.KAMLESH GOHEL (ASST.MANAGER-ANG) MR. SANDIP BUNDELA (F.P.E-ANG) MR. DUSHYANT KARELA (F.P.E-DIRECT) MR. GAURAV RAVESHIA (F.P.E-DIRECT)
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Managerial decision regarding the size of the plant or firm will be depends on the size of market to be created. Technical, managerial, functional and human resources at our disposal are the crucial factor determining the size of our business operation. We must strive to reach the optimum size in order to obtain the lowest cost of production as well as the lowest cost in distribution. The sizes of business unit are as follow:• Large scale unit • Medium scale unit • Small scale unit According to the Indian companies Act 1956, an organization established with an initial capital of Rs.1 crore or more than Rs.1 corer is called large scale unit. BAJAJ CAPITAL is a medium scale service base unit.
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The development or growth of organization is closely interconnected with the stages of economic development of a country. Thus, after the economic development the evolution and development of business organization is accelerated. The business unit gradually expanded from sole proprietorship in to partnership firms and than in to private limited companies and in to big public limited companies and finally in to huge business combinations such as holding companies having a number of subsidiary companies. The following forms of business organizations carry out modern business.
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Form of Organization
Privet Enterprises
Co-operative Sector Enterprises
Public Sector Enterprises
Sole Trader Partnership Firm Company Orga. Privet Com. Public Com
Co-operative Society Co-operative Store
Government Department Govt. Company Statutory Corporation Statutory Board
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The single focus of the organization is to be the most useful reliable and efficient provider of financial services. It is their continuous endeavor to be a trust worthy advisor to their clients & helping them in achieving their financial goal.
• To serves their clients with utmost dedication and integrity so that BCL (BAJAJ CAPITAL LTD.) exceed their expectations and build enduring relationships. • To offer unparalleled (best) quality of service through complete knowledge of products, constant innovation in services and use of the latest technology. • To always give honest and unbiased financial advice and earn their client’s everlasting trust. • To serve the community by educating individuals on the merits of financial planning and in turn help shape a financially strong society. • To create value for all stake holders by ensuring profitable growth.
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• To build an amicable environment that records respect to every individual and permits their personal growth. • Emerge as a symbol of public trust & confidence by creating a positive image. • Maintain excellence in operation & management by bringing in transparency & integrity. • Develop & motivate human resource there by cultivating professional culture in the product operation. • Ensure speedy & satisfactory customer services through continuous product innovation & aggressive marketing strategies. • The investor can be doubly sure that the advice given by them is totally impartial.
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Their logo depicts lord Ganesha who is the source of all values and ethics in business.
our
• The long trunk symbolizes continuous exploration. We explore all avenues to provide the best investment opportunities for clients. • The heavy posture of Ganesha symbolizes stability. We help our clients to attain financial stability through wise investments. • Lord Ganesha is known as the remover of obstacles and best toward the prosperity. We emulate his example and try our best to help our clients attain prosperity by proper financial planning. • Our logo has a yellow background. Yellow is the colour of gold, which symbolizes wealth. According to Vedic lore, it is also the colour associated with brihaspati, the guru and counselor of the gods. We offer our clients sage counsel to make their wealth grow. • The letters are in red. Red is the colour rajas symbolizes the power and incessant activity. It symbolizes our aggressive quest for your well being and happiness.
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Never invest directly in the stock market. Take the mutual fund route. • Safety of principal should be of prime importance. We believe in a controlled (risk) approach to investments. • Do not let inflation eat up your money in a savings bank account. Go for superior and stable return. • Have look you’re your financial objectives. Your investments should depend upon them. • Take long-term approach to equity investments. • Diversify your investments. Do not put all your egg in one basket. • Keep a reasonable amt of cash to meet your emergency needs. • Take a balanced approach to investing. Avoid risky investment
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With years, Bajaj Capital is also adding services to their customers. The India’s most admired investment advisory and financial planning company is passing through a phase of customer market. The customers have more choices in choosing their investments. A competition has been established within the different kind of investments operating in India. With stiff competition and advancement of technology, the services provided by Bajaj Capital Ltd. have become more easy and convenient. Bajaj Capital, in India with the way of development has become easy to apply in investment market.
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•
What is financial planning?
Financial planning is the process of meeting your life goals through the proper management of your finances. Financial planning helps you make advance provision for financial needs that will arise in the future. The objective of financial planning is to ensure that the right amount of money is available in the right hands at the right point in the future to achieve an individual's life goals. • Who is a financial planner?
A financial planner is someone who uses the financial planning process to help you determine how to meet your life goals. The key function of a financial planner is to help people identify their financial planning needs, their present priorities and the products that are most suitable to meet their needs. He or she normally possesses detailed knowledge of a wide range of financial planning tools and products, but his major role is to help clients choose the best products for each need. The planner can take a 'big picture' view of your financial situation and make financial planning recommendations that are right for you. • What should a financial plan include?
A financial plan should include a review of your net worth, goals and objectives, investment portfolio, cash flow, investments, retirement planning, tax planning and insurance needs, as well as a plan for implementing your goals.
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The only thing permanent in life is change. Time changes. People change. So does life. We expect life to be much better tomorrow than it is today. Tomorrow, we hope to fulfill all our dreams and aspirations. So it’s time for us to change the way we plan our investment. Now, Financial Planning is becoming increasingly popular in developed countries in the world. Bajaj Capital Ltd always so caught up in the smaller things of life, which they forget to look ahead into the future. Just remember, in order to have a secure financial future, we need to look at the bigger picture. We need to plan our financial future and then implement it as well. This is where everybody needs expert’s advice and for this Bajaj Capital is our best choice. For these requirements of the customers Bajaj Capital introduced the 360 financial planning programmed. 360 Financial Planning is the process of helping us identified and priorities our goal and also help us realize them in a planned, disciplined and systematic manner. So, Bajaj Capital Ltd helps us take a holistic view of our financial life and create a complete plan. The following circle shows the 360 degree financial planning.
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? ? ? ? ? ?
Investment Planning:- To make your wealth grow. Cash Flow Planning:- To provide for assets and meet the periodic cash requirements. Tax Planning:- To save on taxes and increase your income. Insurance Planning:- To protect yourself, your family and your assets. Children’s Future Planning:- To give your children a financially secure future. Retirement Planning:- Because retirement is a time to relax, not to get worried
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1. Investment Planning:Everyone needs to save for a rainy day. Once we have saved enough to take care of emergencies, we should start thinking about investing and to make our money grow. They can help us plan our investments so that we can reap adequate benefits and achieve our financial goals. Bajaj Capital’s Investment Planning Service includes:• Risk Profiling • Asset Allocation and Portfolio Construction • Creation and Accumulation of Wealth through Systematic Investment Plans (SIP). • Regular review of progress and Portfolio Rebalancing Essentially, Investment Planning involves identifying our financial goals throughout our life, and prioritizing them. Investment Planning is important because it helps us to derive the maximum benefit from our investments. Our success as an investor depends upon our ability to choose the right investment option. This, in turn, depends on our requirements, needs and goals. For most investors, however, the three prime criteria of evaluating any investment option are liquidity, safety and return. Investment Planning also helps us to decide upon the right investment strategy. Besides our individual requirement, our investment strategy would also depend upon our age, personal circumstances and our risk appetite. These aspects are typically taken care of during investment planning.
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Investment Planning also helps us to strike a balance between risk and return. By prudent planning, it is possible to arrive at an optimal mix of risk and returns that suits our particular needs and requirements. Investment means putting our money to work to earn more money. Done wisely, it can help us meet our financial goals like buying a new house, paying for college education of your children, of your enjoying a comfortable retirement, or whatever is important to you. We do not have to be wealthy to be an investor. Investing even a small amount can produce considerable rewards over the long-term, especially if we do it regularly. But we need to decide about how much we want to invest and where. To choose wisely, we need to know the investment options thoroughly and their relative risk exposures.
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2.
Insurance Panning:-
“Insurance is not for the person who passes away, it for those who survive” goes a popular saying that explains the importance of Insurance Planning. It is extremely important that every person, especially the breadwinner, covers the risks to his life, so that his family's quality of life does not undergo any drastic change in case of an unfortunate eventuality. Insurance Planning is concerned with ensuring adequate coverage against insurable risks. Calculating the right level of risk cover is a specialized activity, requiring considerable expertise. Proper Insurance Planning can help us look at the possibility of getting a wider coverage for the same amount of premium or the same level of coverage for the same amount of premium or the same level of coverage for a reduced premium. Hence, the need for proper insurance planning. Insurance, simply put, is the cover for the risks that they run during their lives. Insurance enables us to live their lives to the fullest, without worrying about the financial impact of events that could hamper it. In other words, insurance protects us from the contingencies that could affect us. Insurance Planning takes into account the risks that surround us and then provides an adequate coverage against those risks. There is no risk not worth insuring ourselves against, and insurance should first and foremost be looked as a measure to guard against risks - the risk of our dreams going awry due to events beyond our control
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3.
Retirement Planning
Some like it. Some don’t. But retirement is a reality for every working person. Most young people today think of retirement as a distant reality. However, it is important to plan for our post-retirement life if we wish to retain our financial independence and maintain a comfortable standard of living even when we are no longer earning. This is extremely important, because, unlike developed nations, India does not have a social security net. Retirement Planning acquires added importance because of the fact that though longevity has increased, the number of working years haven’t.
i.
Bajaj Capital Ltd Retirement Planning Service involves:• Computing that amount that would be required postretirement. This is done after taking inflation and time value of money into account. • Building your Retirement Corpus using Systematic Investment Plans (SIPs) and other long-term growth orient products. • Ensuring adequate post-retirement income through safe investments. The asset allocation and selection of investment vehicles keep changing as our risk-bearing capacity diminishes.
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5.
Tax Planning:-
Proper tax planning is a basic duty of every person which should be carried out religiously. Basically, there are three steps in tax planning exercise. 1. These three steps in tax planning are:• Calculate your taxable income under all heads ie, Income from Salary, House Property, Business & Profession, Capital Gains and Income from Other Sources. Calculate tax payable on gross taxable income for whole financial year (i.e., from 1st April to 31st March) using a simple tax rate table, given on next page. After you have calculated the amount of your tax liability. You have two options to choose from:? Pay your tax (No tax planning required) ? Minimize your tax through prudent tax planning.
Most people rightly choose Option 'B'. Here you have to compare the advantages of several taxes saving schemes and depending upon your age, social liabilities, tax slabs and personal preferences, decide upon a right mix of investments, which shall reduce your tax liability to zero or the minimum possible. Every citizen has a fundamental right to avail all the tax incentives provided by the Government. Therefore, through prudent tax planning not only income-tax liability is reduced but also a better future is ensured due to compulsory savings in highly safe Government schemes. Bajaj Capital sincerely advise all their readers and clients to plan their investments in such a way, that the post-tax yield is the highest possible keeping in view the basic parameters of safety and liquidity.
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•
•
2.
Filing of Income Tax Return:•
Filing of income tax return is compulsory for all individuals whose gross annual incomes exceed the maximum amount which is not chargeable to income tax i.e. Rs. 1,45,000 for Resident Women, Rs. 1,95,000 for Senior Citizens and Rs. 1,10,000 for other individuals and HUFs. • The last date of filing income tax return is July 31, in case of individuals who are not covered in point 3 below. • If the income includes business or professional income requiring tax audit (turnover Rs. 40 lakes), the last date for filing the return is October 31. • The penalty for non-filing of income tax return is Rs. 5000. Long term capital gain on sale of shares and equity mutual funds if the security transaction tax is paid/imposed on such transactions.
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6.
Short Term Cash Flow Planning
In simple terms, cash flow refers to the inflow and outflow of money. It is a record of your income and expenses. Though this sound simple, very few people actually take the time out to find out what comes in and what goes out of their hands each month. Cash flow planning refers to the process of identifying the major expenditures in future (both short-term and long-term) and making planned investments so that the required amount is accumulated within the required time frame. Cash flow planning is the first thing that should be done prior to starting an investment exercise, because only then will you be in a position to know how your finances look like, and what is it that you can invest without causing a strain on yourself. It will also enable you to understand if a particular investment matches with your flow requirement. You should always do a cash flow for yourself as on date, and you will realize that you could have a potential savings amount within each month of your working life. This is the amount that you should look at saving for meeting your financial goals. The best way of doing this is to have a personal budget. Cash flow plans are commonly used by business houses. Without a viable cash flow plan, a company could easily spend more than its revenue, putting it in peril. Unfortunately, most of us do not realize that a cash flow plan is as important for people like us as well.
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Cash flow plan brings you face-to-face with what you should ideally be saving, and investing in a systematic and regular manner, and what would it mean to you to withdraw from your portfolio after a couple of years. It brings down in numbers what your financial future has in store for you, and gives a crystal clear view (as much as is possible with inflation and the interest rate scenario). • Cash Flow Planning Basics:-
• The idea behind cash flow planning is to match expenses on life goals with the available income. Cash flow planning begins with identifying the sources and the amount of income and expenditure. • 'Income' includes maturities of investments, income from other sources, dividends, etc. 'Expenses' include loan repayments, and all other outflows etc. • The next crucial step is to list out the life goals and assigning a time frame for achieving them. • The next step is to priorities these goals. As you will notice, some of these goals are high priority, while others could be assigned a relatively lower priority. • High priority goals are those where you do not have the liberty of compromising either on the time frame or on the amount. Low priority goals, on the other hand, can be tweaked around a bit.
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• Finally, take care to ensure that you have a contingency fund to tackle an emergency. Ideally, the size of your contingency fund should be two-three times your monthly expenditure, if you are a working person. If you are a retired person, the amount should be three to five times. Thereafter, your financial planner can help you work out the right investment strategy by using the principles of Investment Planning. Essentially, this involves calculating the amount of investment required to realize the goal, taking inflation into account.
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7.
Children’s Future Planning
Like every parent, you too must be overjoyed to watch your child grow. All parents want to give the best possible upbringing to their children. This includes good education and security, in case of any eventuality. Soon, your little bundle of joy will grow up, and it will be time to provide for his or her higher education and wedding. The purpose of Children's Future Planning is to create a corpus for foreseeable expenditures such as those on higher education and wedding, and to provide for an adequate security cover during their growing years. Children's Future Planning acquires added importance because children's education and wedding are not high priority life goals, which can be postponed nor can there be a compromise on the amount. Like most parents, you might be saving regularly to ensure a safe tomorrow for your child. However, savings alone is no longer enough. For ensuring adequate funding of your child's education, you as a parent need to do two things: • Invest appropriate amount systematically and at regular intervals. • Provide for a financial security blanket to cover any eventuality There are many products which your Financial Planner can use to achieve the above objectives. For example, he could suggest a Children's Future Plan offered by any good insurance company, to
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build a corpus for your child's higher education, and provide for a security cover in the event of the parent's unfortunate demise.
1.
Mutual Fund
Mutual Funds are among the hottest favorites with all types of investors. Investing in mutual funds ranks among one of the preferred ways of creating wealth over the long term. In fact, mutual funds represent the hands-off approach to entering the equity market. There are a wide variety of mutual funds that are viable investment avenues to meet a wide variety of financial goals. This section explains the various aspects of Mutual Funds. 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. Investments in securities are spread across a cross- section of industries and sectors, thus reducing the risk. Mutual funds issue units to investors in accordance with the quantum of money invested by them. A Mutual fund must be registered with Securities and Exchange Board of India (SEBI). Bajaj Capital Ltd. is giving services of different company’s mutual funds in different scheme.
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These are different mutual funds are as follows:Mutual Funds (pvt. & pub.):? HDFC ? Principal ? Reliance ? Prudential ICICI ? Standard Chartered ? UTI ? TAURUS ? Bank of Baroda ? Birla Sunlife ? Canbank ? Chola Mutual Fund ? DSP Merrill Fund ? Fidelity ? Franklin Templeton
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? ? ? ? ? ? ?
HSBC ING Vysya JM Kotak Mhindra LIC SBI TATA
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Snapshot of Mutual Fund Schemes
Mutual Fund Type
Objective
Liquidity + Moderate Income + Reservation of Capital
Risk
Investment Portfolio
Treasury Bills, Certificate of Deposits, Commercial Papers, Call Money Call Money, Commercial Papers, Treasury Bills, CDs, Shortterm Government securities
Who should invest
Those who park their funds in current accounts or short-term bank deposits
Investment horizon
Money Market
Negligible
2 days - 3 weeks
Short-term Funds (Floating – short-term)
Liquidity + Moderate Income
Little Interest Rate
Those with surplus
3 weeks -
short-term funds Credit Risk & Interest Rate Risk Predominantly Debentures, Government securities, Corporate Bonds Salaried & conservative investors
3 months
Bond Funds
Regular Income
More than 9 12 months
(Floating – Long-term) Gilt Funds Security & Income Long-term Capital Appreciation To generate returns that are commensurate with returns of respective indices Growth & Regular Income Interest Rate Risk High Risk Government securities Stocks Salaried & conservative investors Aggressive investors with long term out look. 12 months & more 3 years plus
Equity Funds
Index Funds
NAV varies with index performance Capital Market Risk and Interest Rate Risk
Portfolio indices like BSE, NIFTY etc Balanced ratio of equity and debt funds to ensure higher returns at lower risk
Aggressive investors.
3 years plus
Balanced Funds
Moderate & Aggressive
2 years plus
2.
Post Office Scheme
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These schemes are offered by the Government of India. ? ? ? ? ? India. ? Safe, secure and risk-free investment options. No Tax Deduction at Source (TDS). Nomination facility is available. Nomination can be changed at any time These instruments are transferable to any part of Attractive rates of interest.
Post Office Schemes: ? ? ? ? ? Post Office Monthly Income Scheme Post Office Time Deposit Scheme Post Office Savings Account National Savings Certificate Kisan Vikas Patra
Govt. schemes offered through Post Offices and Nationalized Banks: ? ? Public Provident Fund Senior Citizen's Savings Scheme
3.
Bonds
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Bond refers to a security issued by a company, financial institution or government which offers regular or fixed payment of interest in return for borrowed money for a certain period of time. Bonds are the two types:• Tax Free Bonds 6.5% Tax free bonds has been withdrawn from the market. This will not effect the investments already made. • Taxable Bonds
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4.
Fixed Deposit
Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilized are governed by the Companies Act under Section 58A. These deposits are unsecured, i.e., if the company defaults, the investor cannot sell the documents to recover his capital, thus making them a risky investment option. Benefits of investing in Company Fixed Deposits are as follows:• High interest. • Short-term deposits. • Lock-in period is only 6 months. • No Income Tax is deducted at source if the interest income is up to Rs 5,000 in one financial year. • Investment can be spread in more than one company, so that interest from one company does not exceed Rs. 5,000 Company Fixed Deposits are a mixed bag, where most investment choices arise. Company FDs can be an interesting investment option if you know how to select the right FDs, and how to avoid the no-so-good ones. Here are some of the points that investors should keep in mind.
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• Spread your risk :The deposits should be spread over a large number of companies engaged in different industries. This way, you'll be able to diversify your risk among different companies. Try not to put more than 10% of your total investments in one particular company. • Choose the right period of deposit:Ideally, the investment should be for 1 to 3 years depending upon the rate of interest. • Periodic review:The performance of the companies should be reviewed at maturity. This will help you decide whether to renew or reshuffle the deposit. It is also wise to keep a track of these companies by checking their share prices, annual reports and other details reported in newspapers.
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5.
IPO’s
IPO (Initial Public Issues) of good and growing companies keep on coming in the market. History shows investors who bought equity shares of reputed companies during their initial public issues have now become rich and prosperous. IPO means, it is an acronym for Initial Public Offering, which is the first issue of a company’s securities. Generally daring IPO units are offered at par.
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6.
Real Estate
Intelli Realty is the group concern of Bajaj Capital Group (pioneer in financial advisory and serving to society since 1965) and is one of the fastest growing consultant/service providers in commercial, residential, industrial real estate in India. Bajaj Capital offers the most comprehensive services portfolio in the industry. They have a team of top notch professionals & expertise who keeps their eyes on market trend and changes which enable us to upper hand than other Property consultants/Service Providers. They always focus on their clients and theirs requirement and committed to provide the best deal to them. Bajaj Capital’s work is not based on guess or assumption, "RESEARCH", is the only way we follow to accomplish our client's requirement of real estate. They are supported by their property experts and extensive property and client database, which enable their professionals to access regional property opportunities and to pursue client interest in a cost-effective manner. Its clients include Locals, NRI's, HNI's Institutions they demonstrate the quality their deliver to them and they are the foremost choice to its existing clients and theirs choose it’s whenever they do any dealing in Real Estate.
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Insurance means identification and evolution risk on our life, health and assets. Insurance help us make provision for adequate coverage and protection or we can say that, insurance provides a cover against uncertainties like death, accidents, and financial losses etc. It also serves as an effective investment and tax saving tool. We can get insurance from an insurance broker. An Insurance Broker is a representative of the insurance buyer. The insurance broker does not represent any particular insurance company, unlike an agent. In India, insurance brokers have to comply with stringent laws, rules, regulations and an exhaustive code of conduct framed by the Insurance Regulatory and Development Authority (IRDA); which is aimed at protecting the interests of the insurance buyer. Bajaj Capital Insurance Broking Ltd. is an IRDA-approved 'Composite Insurance Broker" bearing license number CB 042/02. Insurance include two type of insurances i.e. • Life Insurance & • General Insurance
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1.
Life Insurance
Life insurance means that the protection or cover against our health, life etc. life insurance does not stop or finish our risk against accident & death but it give some relaxation by giving monetary help at the time of uncertainty.
Bajaj Capital give varies types of life insurance of varies
company’s. 2.
General Insurance
General insurance means that protection or cover against our assets like land, building, machinery, vehicles, house etc.
Bajaj Capital Ltd provides many types of general insurance of different kind of company’s some of them are as follows:-
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Insurance Company
Product Type
MOTOR TRAVEL
Product
AUTO SECURE TRAVEL GUARD ACCIDENT GUARD, SECURED FUTURE PLAN BUSINESS GUARD, HOME SECURE, SCHOOL PACKAGE CAR INSURANCE TRAVEL PLAN HEALTH GUARD SILVER HEALTH PERSONAL GUARD HOUSEHOLDER'S POLICY, SHOPKEEPER INSURANCE, OFFICE PACKAGE, WEDDING INSURANCE HEALTH SHIELD GOLD HOMESHIELD ACCIDENT SHIELD CAR INSURANCE HEALTH TRAVEL CAR CAR INSURANCE HEALTH FIRE MARINE GROUP TRAVEL GROUP PA FIRE MARINE CAR INSURANCE MEDICLAIM CAR OVERSEAS MEDICLAIM HOME OFFICE FIRE MARINE
TATA AIG
ACCIDENT MISC. MOTOR TRAVEL HEALTH
BAJAJ ALLIANZ ACCIDENT MISC.
HEALTH ROYAL INSURANCE HOME ACCIDENTAL MOTOR ICICI LOMBARD
IFFCO TOKIO
HDFC CHUBB
PSU's – NEW INDIA UNITED NATIONAL ORIENTAL
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1.
Individuals
Why do you need an Investment Advisor and Financial Planner? Why do you go to a doctor when you fall ill? Or, visit an architect when you want to build your house? It’s because they are specialists in their respective fields. Similarly, an investment advisor is a qualified and experienced specialist who is capable of advising you and managing your money. The growing complexities of the money market and the panoramic range of financial instruments make financial planning and money management an intimidating task for the average person – that’s why you need a reliable investment advisor and financial planner. Bajaj Capital, one of India’s oldest Investment Advisory organizations, offers you comprehensive and scientific Investment Advice. With our experience of over four decades, we are perfectly poised to offer you the best possible investment advice. Bajaj Capital have qualified, trained and experienced investment advisors who have in-depth knowledge of the financial markets. These investment advisors are backed by a team of investment researchers at the Bajaj Capital Centre for Investment Research, who keeps track of every minute change in the market, every new product and the latest investment trends. This is what provides Bajaj Capital’s Investment Advisory Service its cutting edge. What’s more, Bajaj Capital’s Investment Advisory Service is offered absolutely FREE! And that’s not all. We also offer FREE Investment Assistance – that means no hassles either!
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2.
Corporators & Institutions
Bajaj Capital offers specialized services to Corporate and Institutions through the La Premier Institutional Advisory Group. It is a strategic service arm comprising handpicked professionals that provides an exclusive and world-class service to a select group of clients. Bajaj Capital has a presence in all Metros in India, and an annual mobilization of over Rs 15,000 corers. Our Assets Under Management (AUM) is to the tune of Rs 3,200 corers, and we enjoy the patronage of over 750 quality relationships. For corporate & institutions Bajaj Capital Ltd provide basically two types of services i.e. • Investment Advisory Services. • Risk Management Services.
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3.
High Net Worth Individuals
Our interactions with hundreds of High Net worth Individuals and family-owned businesses have helped us to understand the special needs and requirements of such investors. Bajaj Capital La Premier was created to cater to the needs of High Net worth Individuals. It is a specialized group comprising handpicked professionals that provides exclusive and world-class wealth management services to a select group of clients. • Exclusive Services:-
Essentially, our Wealth Management Services aim to help you preserve, enhance and grow your wealth by implementing the wellaccepted principles and global best practices on wealth management. To cater to the elite segment of High Net worth Clients, La Premier offers an exclusive range of value-added service, including: • Personalized attention through a dedicated Relationship Manager • Market information sharing through quality in-house research reports, made available at regular intervals • Periodic portfolio review and regular update on portfolio valuation • Pro-active advice on market events and triggers. • Immediate alerts on new products and New Fund Offers • Need-based interactions with Fund Managers and other financial experts like Tax Experts, Estate Planners, etc. • Independent, unbiased advice
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Bajaj Capital’s Family Service/Office:This service is specialized for family owned business. Family-owned businesses have their own specific needs. The Bajaj Capital Family Office has been created to especially to serve family-owned businesses. Bajaj Capital is the first to introduce this elite service in India. Bajaj Capital offer to share with you the global best practices related to accumulation, enhancement and preservation of wealth, and make available the expertise of the crème de la crème of our pool of specialists. A dedicated Wealth Enhancement Manager will be assigned to offer exclusive and personalized service to you. Bajaj Capital provides world-class services in areas like Wealth Management, Risk Management, Investment Banking, Estate Planning, Taxation, and the like.
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4.
NRIs
Bajaj Capital gives Investment Opportunities for Non-Resident Indians (NRIs). NRIs can make direct investments in proprietary/partnership concerns in India as also in the primary issues of shares/debentures of Indian companies. They can also make portfolio investments, i.e. purchase of shares/debentures of Indian companies through stock exchanges in India. These facilities are available on both repatriation and nonrepatriation basis. In order to facilitate NRIs to set up new companies in India, the Reserve Bank of India (RBI) vides its Notification NO. FERA 143/93 RB dated 26th April 1993, has granted general permission to NRIs to subscribe to the Memorandum and Articles of Association and to take up the shares of Indian companies for their incorporation. The general permission empowers such Indian companies to issue shares to NRIs, provided that the company is not engaged into activity relating to agricultural and plantation.
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•
Direct Investment:-
NRIs are permitted to make direct investment in partnership/ proprietorship concerns in India as also by way of subscription to shares/ debentures of Indian companies. They are also permitted to place funds in company deposits. Investments made will either be on repatriation or on non-repatriation basis depending on the terms and conditions applicable under the existing schemes for NRI investment. Wherever the investments are allowed with repatriation benefits, the funds for the purpose should be received by inward remittances from abroad or from the investor’s NRE/FCNR Accounts. However, in respect of investment on non repatriation basis, funds in NRO Accounts could also be used.
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5, Portfolio Investment
NRIs/OCBs have to obtain prior permission of RBI to acquire shares/debentures of Indian companies and units of domestic Mutual Funds on both repatriation and non-repatriation basis through stock exchanges in India. The application for permission is to be submitted to RBI through a designated Bank branch in one of the prescribed forms. RBI approval is valid for a period of 5 years from the date of issue. Regulations regarding Portfolio Investment (i.e. investment through Stock Exchange) in shares/debentures by NIRs /OCBs have been explained below: • Portfolio investments in shares/debentures by NRIs/OCBs are permitted only though designated branches of authorized dealers preferably located at centers having stock exchanges. Authorized dealers should inform the names of such branches to Central Office of Reserve Bank and obtain approval. • Non-resident investors can also authorize Indian residents or stock exchange brokers as their agents in India to purchase/sell shares on their behalf under the schemes but all transactions should be routed through the designated branch of authorized dealer.
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•
NRIs/OCBs will be permitted to make portfolio investment in shares/debentures (convertible and non-convertible) of Indian companies, with or without repatriation benefits provided the purchase is made through a stock exchange and also through designated branch of an authorized dealer. NRIs/OCBs are required to designate only one branch authorized by Reserve Bank for this purpose. Investment in equity shares and convertible debentures will be permitted subject to an overall celling of 10 per cent of the total paid-up equity capital of the company concerned; and 10 per cent of the total paid-up value of each series of the convertible debentures issued by the company concerned for all NRIs/OBCs taken together both on repatriation and on nonrepatriation basis.
• (I) (II)
• •
The purchase of shares and debentures under the scheme is required to be made at the ruling market price. NRIs/ OCBs intending to invest on non-repatriation basis should submit their applications in the prescribed form, through a designated branch of an authorized dealer to purchase shares/debentures of Indian companies, securities (other than bearer securities) of the Central or State Government and Treasury Bills on behalf of the NRI/OCB subject to the condition that the payment of such investment is received through inward
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remittance or from the investors NRE/FCNR/NRO/NRSR account.
The general permission granted by Reserve Bank would be initially valid for a period of five years. Authorized dealers may themselves renew the permission granted by Reserve Bank to individual NRIs as well as OCBs for a period of five years at a time. • NRIs and OCBs intending to invest with repatriation benefits should submit their application through a designated branch of an authorized dealer in prescribed form. Reserve Bank will grant general permission to the designated branch for purpose of shares/debentures of Indian companies, securities (other than bearer securities) of the Central or any other State Government and Treasury Bills subject to the conditions that: (a) The payment is received through an inward remittance in foreign exchange or by debit to the investor’s NRE/FCNR account. (b) Investment made by any single NRI/OCB investor in equity/preference shares and convertible debentures of any listed Indian company does not exceed 5% of its total paidup equity or preference capital or 5% of the total paid up value of each series of convertible debentures issued by it. (c) NRIs/OCBs take delivery of the shares/convertible debentures purchased and give delivery of the shares/convertible debentures sold under the scheme.
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The general permission granted by Reserve Bank will be valid initially for a period of five years. Authorized dealers may themselves renew the permission granted by Reserve Bank to individual NRIs as well as OCBs for a further period of five years at a time. • Shares/debentures purchased by NRIs/OCBs should be held and registered in the name of either the investor himself or an authorized dealer or the letters nominee/s. Shares/debentures can be purchased by NRIs in joint names with other NRIs with permission of Reserve Bank.
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Today, marketing is spread in every field of like, services, hospitals, goods even politics and many more. In service sector too the importance of marketing also can not measurable, still it has not developed in public sector it is only limited to foreign service sector and privet sector. The reason for success of foreign in India is only best marketing efforts. Today in service sector there is a cutthroat competition between other sector and privet financial service sector. Marketing is a human activity directs at satisfying the needs and wants of customers, there are five stages of financial marketing. Firstly marketing is advertising, sales promotion and publicity. Secondly, marketing is smiling and co-friendly atmosphere. Thirdly, marketing is innovation. Fourthly, marketing is positioning. When all financial service sector advertise and innovate, they look alike so, they should try to position themselves differently, even through symbols, logos or aggressive advertising so that the customer can distinguee between one service sector and another. And finally fifthly, marketing is analyzing, planning and controlling. At Bajaj Capital, through there is no specific marketing department for marketing of different services but providing best services to their customers and getting good customer satisfaction, and doing such efforts of marketing like, promotion activities, they are in directly getting benefits of marketing. Today they are also planning for such continuous marketing efforts and within the few years they will have aggressive marketing department.
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According to Philip Kotler, “Marketing is the process of planning, and executive the conception, pricing promotion and distribution of goods idea to create exchanging with target groups that satisfy customer and organization objective.” The concept of market is very much impotent in marketing. The American Marketing Associated defines, “A market as the aggregate demand of the potential buyer for product/service.”
CHAIRMAN
MR.K. K. BAJAJ
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MANAGING DIRECTORS
MR.SANJIV BAJAJ
MR.RAJIV BAJAJ
CHIEF EXECUTIVE OFFICER
MR. ANIL CHOPRA
National head (Avinash Shau)
Planning Life Fixed Financial insurance income (Sanjiv Kumar) (Harish Subbarval)
General
Mutual (Surjit mishra)
insurance fund (Vinay Tanuja) (Narendra Anand)
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The basis of marketing operation is the co-operation of four key variables namely,
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A product is any thing that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
Level of product:1. Core benefit: - The fundamental services or benefit that consumer is really buying. 2. Basic product: - The solution of the core benefit that the customer is really buying. 3. Expected product: - A set of attributes and condition buyer normally expect when they purchases the product. 4. Augmented product: - When the product exceeds the customer expectations. Bajaj capital provides wide range of product they provide all level of products.
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A product mix consists of the entire product & items that a particular manufacturer or marketer offers for sales. Bajaj capital provides a wide range of products that satisfies different need of the investors. ? Dimensions of the product mix
roduct mix width:- it refers to the no of different lines company carries. Product mix length:- it refers to the total no of items the company carries within the product line. Product mix depth:- it refers to the no of version offered by the each product in the line. Product mix consistency:- it refers to how closely relate the various product line are in end use production requirements. Eg. Distribution channel etc. Bajaj capital provide a wide range of products like mutual fund, life insurance, general insurance, fixed deposits, govt. securities etc. and all these product have their own length and depth. so it is difficult to show. We can get the exact idea about it by reviewing the site www.bajajcapital.com.- 66 -
“A set of interdependent organization involved in the process of making a product or service available for the use or consumption by the consumer or by the business users. Channel provides market information to the company about the market condition, Trend, investor’s preferences, competitor’s activity, changing taste of the investors etc. Channel helps by reducing the number of contact needs for reaching investors. Intermediaries find the investors and do the selling for the company. They supply in assortment. Channel does the job of combining product of different company for the sale. Channel handle the flow involved in distribution. Like physical flow of products. Ownership flow, risk flow, payment information flow.
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Channel level
• Direct marketing:Company • Indirect marketing:Advisory Network Group (ANG) investors investor
? Objectives of the channel:• Effective coverage of the target market. • Ensuring uninterrupted sales and promote other services. • Efficient distribution.
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“The promotion mix consists of the specific blend of advertising, sales promotion, public relations, personal selling and direct marketing tools that a company uses to pursue its advertising and marketing objectives. Components:• Advertising • Sales promotion • Public relation • Personal selling • Publicity The above given tolls are successfully used by the bajaj capital to strengthen the company position in to the competitive market. Mr. Anupam kher is the brand ambassador of the company. An advertisement plays an important role in the development and popularity of the company. the company try to satisfy the customer who buy or use the service offered by the Bajaj Capital Ltd. Bajaj Capital Ltd is using all media of advertisement such as newspaper, television, magazines, out door posters, banners etc. through that they getting the business. They are giving their advertisement in newspaper like Economics Times, Times of India and also in magazines like Investor India etc.
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Service sector marketing also uses sales promotion devices such as point of purchases, materials, advertising specialties (ball pens, calendars, diaries, notes pads etc.) brochures and booklets describing financial services like, mutual fund, IPO, etc. a services sector has also to build up and maintain its bright image in the community. Recently they have organized the reliance infrastructure fund NFO meet at hotel Silver Palace in Rajkot. By this way are using very simple and less expenses tools of marketing like, advertising and publicity. They are getting good response from the society.
Different activities done by bajaj capital to target the market are as follow:• Direct:• • • • • • • • • Investor meet Brochures distribution KNOP activity Advertisement in news papers Stall in malls SMS campaigning Material distribution Tele marketing Call calling etc.
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• ANG:• Meeting of ARN holders etc. Bajaj Capital Ltd. is doing personal selling and also indirect marketing through brokers. BCL is believed in very strong goodwill and also best customer satisfaction by proving best service to the customer. Bajaj capital believes in good public relation . They have also a good corporate image.
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Push:- Efforts to convince channel intermediary to stock the company product. Pull:- Efforts direct at end users to induce them to buy the company’s product
? STRATEGY:Company
TRADE PROMOTION
ANG SALES PROMOTION (BROKERS)
INVESTORS
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To day as we know that due to globalization all the business units are facing global competition and also other domestic companies are also in the competition. Bajaj capital also facing competition .their competitors are Marvadi group, Karvi group, Ajay Natvarlal securities and M j advisor.
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“Market segmentation is the process of dividing a market in to distinct subgroups of consumers with distinct needs, characteristics, or behavior, who might require separate products or marketing mixes.” • Geographic • Demographic • Psychographic • Behavioral Bajaj capital has done its segmentation psychographic it includes social class and also behavioral it includes benefits.
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The process of evaluating each market segments attractiveness and selecting one or more segments to enter. Bajaj capital has selected “full market coverage” as a market segmentation they attempts to serve all customer groups with all the products they might need. As we know that they are largest financial product provider in the country.
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Good marketing decisions are not made in a vacuum. Hence, even in service sector marketing. We need marketing research and information to enable service sector’s executive to make sound decisions. The increase in the use of marketing research in service sector marketing is due to two forces; one is competition pressure to be right, and customer-orientation in marketing planning and program. Financial service sector are now establishing separate marketing organization. Conduction marketing research, setting up sales training program and adopting sales promotion divides promotion devices to attach customer, we have special BCL advertisement through T.V. and Newspapers. Marketing may be defined as, “The scientific and controlled process of gathering of none routing marketing information, helping management to solve marketing problems.” As far as it concerned with the marketing research process at Bajaj Capital Ltd. they have been continuously doing such research from beginning. But one positive point for marketing research is that they not doing any big expenses for marketing research and for executives. Bajaj Capital’s staff member themselves goes to market and gathers applications of different investments from the customers or through the brokers. So, by this way they are getting benefits by using marketing research process and the great investment of customers.
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Finance is the fuel of administration. Without adequate financing any business enterprise can’t raise its potentials for growth and success.
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And it would be worthwhile to recall what “Henry Ford” once remarked, ‘Money is an arm or leg. You either use it or lose it’. This statement through apparently simple and quite meaningful, it brings home the significance of money or finance. In the modern money oriented economy finance is one of the basic foundations of all kind of economic activities. Finance management is needed the key to successful business operation. Without proper administration and effective utilization of finance, any business enterprise can’t utilize its potentials for growth and expansion. Organization and control of these functions is important for all types of business unit. Especially in public undertaking massive investment has so far been much less productive, it is necessary to organize the finance functioning such a manner that should help the business in achieving its basic objective with minimum cost. According to Hoagland “Financial management is concerned mainly with such matter as how of Business Corporation raises its finance and how it make use of that.”
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Planning is necessary for the smooth running of the business cannot be carried on without planning. Planning means deciding in advance what is to be done for each area should link to objectives of the organization. Financial planning means deciding in advance the financial activities to be carried on to organization. So, the basic purpose of financial planning is to make sure that adequate funds are raised at minimum cost and they are used widely. Proper planning of the business organization on one hand and on the other hand to allow a fair return to their contribution. Thus financial planning includes the following……. • Determination of financial objectives. • Formation of financial policy. • Development of financial procedure. In Bajaj Capital Ltd., the financial planning has been done through proper management in varies areas like liquidity planning, investment planning, profit planning, cash management, etc.
Capital structure decision is yet another important are under financial management. Capital structure refers to the mix or proportion of
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firm’s permanent long term financing represented by debt preference must ensure the maximization of wealth of shareholders so even the capital structure decision must be taken in light of wealth maximization objectives. That particular debt and equity which maximizes the value of the firm, is known as optimum capital structure in simple word capital structure to the composite of capital. CAPITAL STRUCTURE = Long Term Debts + Preference Share Capital + Equity Share Capital + Reserves.
Cash is the medium of exchange, which allows management to carry on the various activities of the business day-to-day basis. And
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management of cash is one of the most important answers of over all working capital management due to the fare there cash is most liquid type of current assets. As such it is the responsibility of the finance to see that the various functional area of the business have sufficient cash were over they require the same at the same time if has also it be ensured that funds are not blocked in the form of idle cash as the cash remaining idle also involves cost in the form of interest cost and opportunity cost as such the management of cash have to kind a mean between these two extremes of shortage of cash as well as idle cash. The basic objectives of cash management of are to reduce the operating cash balance requirement to maintain possible extent without affecting the routine transaction. For the management of cash flow statement is the most important tool cash low statement provided information about the cash ratio and payment of a firm for again period. It provided important information that compliments the profit and loss account and balance sheet.
A financial analysis of an organization depends to a large extent on the use of ratios. The techniques are commonly known as financial ratio analysis. Ratio analysis is a very powerful analytical tool useful
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for measuring performance of an organization the ratio analysis helps the management to analysis the past performance of the firm and to make further projection. Ratio analysis is a process of comparison of an figure against the calculation of ratio relatively easy and simple task but the proper analysis and interpretation of the ratio can be made only be the skilled analysis.
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Human resource management in any organization, it may be public, privet or co-operative constitute, perhaps the most vital assets of that organization. An organization will fail if its HR management is not competent to execute the work assigned to them. There is no getting
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away from fact that personnel management represent a subsystem which dominants all other subsystem to the organization. Moreover, people are the only assets of an organization that appreciate over a period of time while all the other assets depreciate. The more an organization is investing in HR management, the greater the return from the investment is likely to be and it has been rightly pointed to in one of the books of inter national co-operative alliance, “The gains accruing out of structural reforms can be best capitalized only it the personnel maintained by the co-operative institution are in a position to execute the policies effectively.” This implies the need and necessity of proficient capable HR management, which is one of the primary aims of the HR management. According to national institute of personnel management of India, “HR management concerned with people at work & with their relationship within the organization it seeks to bring together men & women who make you an enterprise enabling each to make his own best contribution to its success both as an individual as a working group.”
A sound foundation for selection of the right kind of HR management is laid with the formulation of sound personnel policies. A personnel policy can be defined as, “A body of principles and rules of conduct that governs the enterprises in its employees. Thus, the sound personnel policies set the time for proper administration of the
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personnel programmers, so as to achieve the objective of the organization.” Bajaj Capital Ltd is one of the leading financial service sectors though its performance is very good but than also such policies for personnel management they cannot make by their own. It has to follow the rules of policies given by the government. So in the matter of the personnel policies BCL is restricted to some level. Than also the BCL has adopted a policy of recruiting only graduate and MBA for their management level. The next important stage in the selection process is the HR management planning. “Planning applied in the field of personnel”. It is the comprehensive and on going process. In Bajaj Capital there is very educated staff as it is concerned with the HR management planning recently they has adopted policy for selection only MBA, graduate and AMFI registered for their personnel has as far as concerned with the HR management planning. There is no long term planning but at a time or requirement of staff they used to recruit staff either out side or from with in the firm through transfer or promotion.
Among the function of personnel manager, one man function is to procure best people for their organization, means search of prospective employees to suit the job recruitment. A firm has to pass through well and good recruitment process for having best HR management this recruitment can be possible through many sources.
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A firm can recruit proper candidate mainly through two success recruitment sources these are as under. Recruitment Sources Internal sources (1) Transfer (2) Promotion (3) Relative & friends External sources (1) Advertisement (2) Educational Institutes (3) Placement Agencies (4) Labour Contract
In case of BCL, the main source or recruitment is daily newspaper advertisement. They also recruit employees by transfer and promotion. Generally as per the recruitment of the job they give advertisement in news and collect the pool of application.
Managing people is not easy but it can be made easier if you make sure that you have selected the right people in the right place. And also it said, “Selection of people is easy but selection of right people is difficult task.”
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The selection procedure is concerned with securing relevant information about an applicant is secured. The objective of selection process is to determine whether the applicant meets the qualification for specific job and to choose the applicant who is choose the applicant who is most likely to perform well in that job. Thus an effective selection program is a non-random process because those selected had been choose on the basis of the assumption that they are likely to be “better” employees then those who have been rejected. Selection process or activities typically follow a standard pattern being with an initial screening of applicant, interview and concluding with final employment decision. The selection procedure of Bajaj Capital Ltd is comparatively simple. The stages of including in the selection process are as follow:
Newspaper Advertisement
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Receipt of Application
Screening
Arrangement and Interview
Selection
Placement and Confirmation
After the selection of employee, management of the firm has to pass through such process. So new employee can be aware of the atmosphere of the firm and also can be familiar with the other employee. This process called orientation or induction.
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In any organization this process performs very initial role because this is the only process, which can create better environment in the organization, and a new comer can be aware about his working condition, his area of responsibility and everything about organization. Proper orientation process can be beneficial to both, a newcomer as well as organization.
Once an employee has been selected he should be placed on a suitable job. Putting the right man at the right job is as important as hiring the right person. Placement is a process of assigning a specific job to each one of the selected candidates. It involves assigning a specific job to each one of
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the selected candidates. It involves assigning a specific rank of and responsibilities of an individual. It implies matching requirement of a job with the qualification of a candidate. In other words, “placement is the determination of the job which an acceptable candidate is to be assigned and his assignment to the job.” Bajaj Capital Ltd. is very careful about this process. And one is that, at the time of requirement only they hire new employees. So hire it is specified that for which job they are recruiting. After the final selection, they have been marking the job of the new employee.
Remuneration is the compensation of an employee receives in return for his or her contribution to the organization. Remuneration occupies an important place in the life of an employee. Standard of living of employee states in the society, motivation, loyalty and productivity depends upon the remuneration.
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For the employee remuneration is significant because of its contribution to the cost of production. For personnel management, remuneration is the major function. The HR specialist has a difficult task of fixing wages and wage differentials acceptable to employee and their leaders. There are mainly three components of employee remuneration. These are as follows: • Wages and salary, • Incentives and • Non-monitory benefits. As far as it is concerned with the Bajaj Capital Ltd., there is specific policy of employee remuneration formed by govt. and SEBI, and itself also. So, the management of employee remuneration there is a specific administration department, which cares of wages and salary and all things about remuneration.
•
Wages & Salary:-
Wages represent hourly rates of pay and, salary refers to the monthly rates of pay irrespective of the number of hours put by an employee. Wages and salaries are subject to annual increments they differ from
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employee to employee and depend upon the nature of seniority and value. • Incentives:-
Incentives are also called “payment by result” are paid in addition to wages and salaries. Incentives depend upon productivity, sales, profit or cost reduction efforts there are individual incentive schemes and group incentive program. Individual incentive are applicable to specific employee are applicable to specific employee performance. Where a given task demands group effort for completion, incentives are paid to the group as a whole. The amount is later divides among incentives refer to variable rewards granted to the individual in terms of changes in specific results in organization setting besides wages and salaries, employees are paid incentives depending upon their performance. Incentive payment is quite substantial and is paid as regular as wages and salaries. The primary advantage of incentives is the inducement and motivation of workers for higher efficiency and greater output. It option schemes and the like perquisites are offered to retain competent executives.
•
Non-monitory Benefits:-
These include challenging job responsibilities. Recognition of merit, growth prospects, components supervision, comfortable working condition and job sharing.
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As far as Bajaj Capital Ltd. is concerned that is specified department who cares about employee remuneration. Apart from salaries they are also provides bonus (one month salary) also provides provident fund scheme and gratuity.
Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people learn knowledge and skills for a benefit purpose. The purpose of
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training is basically bridge the gap between job requirement and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending or continuous process. In any organization there should be proper training program to improve employee resources, as well as organization development. Training involves helping an individual learn hoe to perform his present job satisfactorily. On the other hand development is long term education process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and the critical knowledge for general purpose. So in the any organization the importance of the training and development is very vital, nobody can ignore it. It is a continuous process. Bajaj Capital Ltd. is working with advanced technologies. So its every step better training and development is required.
Mobility and flexibility in the workforce are necessary to cope with the changing requirement of an organization. Job changes provide necessary flexibility, employees move from one job to another one
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through transfer, promotion. So, the importance of employee’s promotion with their ability, knowledge, etc. in the organization in very important. ? PROMOTION:-
Promotion refers to advancement of an employee to a higher post carrying grater responsibilities higher status and better salary. It is upward movement of an employee in the organization’s hierarchy to another job commanding grated authority higher status and better working condition when an employees is assigned a higher level job with more pay and powers he is said the promoted promotion may be temporary or permanent depending upon the need of the organization. So this just like tool which can be useful in two ways i.e. it is a motivation and second way it becomes a source of recruitment from with in an organization so the promotion in an organization that who is present as other activities. In case of Bajaj Capital Ltd as it is service sector they have to follow promotion policy of its merit cum seniority in case of promotion they are independent. TRANSFER:-
?
A transfer refers to horizontal or literal movement of an employee from on a job to another in the same or organization without any significant change in status any pay.
It has defined as “A literal shift causing movement of one individual to another”. Usually without involving any marked change in duties as responsibility will needed of compensation.
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The need for transfer may grid duo to several reason transfer tresses of which the following objective:• • • • • To satisfy employee need To better utilize employees To meet organizational need To adjust the work force To make the employee more versatile etc.
The transfer is beneficial many ways the benefits of the transfer is as under: • • • • • • Grater job satisfaction to employees Remedy for faulty placement Increase in productivity and effective need of the organization. Improve employees skill Develop employees for further promotions Stabilize fluctuation work needs
So, the transfer is also important as far as concerned with Bajaj Capital Ltd. there is no specific transfer policy but according to requirement & for convenience of the employee they used to make transfer.
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The research report includes the various aspects like object of research samples to be research, area of research, in research procedure instrument of research and the ultimate result and analysis. So, it is necessary to fulfill those objects that have been decided at the time of making research. This research report is based on the topic called “AWARENESS OF MUTUAL FUND”. Dividing the whole population in different segments of income level has done this research report the analysis. It was predetermined to give more emphasis on target market like businessmen, profession and govt. employees. The objects were the same for all segments like… • To identify the target market for mutual fund products. The main target was on those who work in Pvt. Ltd. co., govt. employees, etc. • To identify the problems of self employed individual with or without formal income proof such as I.T. Benefits. • To identify the awareness of consumer towards the mutual fund. • To identify in which mutual fund customer more invest.
• To find out which income level people invest in mutual fund more.
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What are 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.
Why choose Mutual Funds ?
Investing in Mutual Funds offers several benefits:
Professional expertise: Fund managers are professionals who track
the market on an on-going basis. With their mix of professional qualification and market knowledge, they are better placed than the average investor to understand the markets
Diversification: Since a Mutual Fund scheme invests in number of
stocks and/or debentures, the associated risks are greatly reduced.
Relatively less expensive: When compared to direct investments in
the capital market, Mutual Funds cost less. This is due to savings in brokerage costs, demat costs, depository costs etc.
Liquidity: Investments in Mutual Funds are completely liquid and
can be redeemed at their Net Assets Value-related price on any working day.
Transparency: You will always have access to up-to-date
information on the value of your investment in addition to the complete portfolio of investments, the proportion allocated to different assets and the fund manager’s investment strategy.
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Flexibility: Through features such as Systematic Investment Plans,
Systematic Withdrawal Plans and Dividend Investment Plans, you can systematically invest or withdraw funds according to your needs and convenience.
SEBI regulated market: All Mutual Funds are registered with
SEBI and function within the provisions and regulations that protect the interests of investors. AMFI is the supervisory body of the Mutual Funds industry.
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is the process of gathering, recording, and analysing of critical and relevant facts about any problem in any branch of human activity.” Market research and marketing research are two different terms where market research means the systematic and intelligent of the “who, what where, when, why and how of actual and potential buyers. Where as Marketing Research means a systematic gathering, receiving and analyzing the data about problems connected to market. It is usually for problem solving, usually deals with strategic planning. As we understood that market research and marketing research both are distinguished with each other. The primary and main difference is about the concept. The market research has narrow concept as it only involves the research about the market and consumer where as marketing research is a broad concept and having a characteristics of problem solving. “Marketing research is a systematic design, collection, analyzing, and reporting of data and findings relevant to a specific marketing situation facing the company.” Marketing managers often commission formal marketing studies of specific problems and opportunities. They may request a market survey, a product preference test, a sales forecast by region, or an advertising evaluation. It is the job of the marketing researcher to produce customer insight into the problem. Small companies can hire the services of a marketing research firm or conduct research in creative and affordable ways. Such as, checking out rivals, using the Internet and engaging students or professors to design and carry out projects.
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“Research
It is inherent in human life to have some aim behind any activity. Even every life has got its own goal. To study the BAJAJ CAPITAL LTD. was not only the requirements of the academic study. There was a curiosity to understand the newspaper industry. Almost every Indian and why only Indian? All human beings, irrespective of any country have become habituated invest money. investment have become a part of our life. People of saurashtra have habit invest money in stock gold and mutual fund. A life without an investment & saving creates the feeling of vacuum in our day to day life.
I was curious to understand:
? ? ? ? The marketing management of such high return in mutual fund. Nature of competition Aim with which other competitors are working Different strategies to increase market share.
The research objectives should be carefully set based on right problem definition. The marketer faces a problem. A proper problem definition facilitates setting up research objectives in a more lucid manner. The research objective gives answers to queries like, ‘What is the purpose of this study?’, ‘Would attainment of research objective help solve the marketing decision dilemma the researcher faces? etc. If yes, research objectives can be said it have been developed. A well developed research objective is an essential pre-requisite for market research success in solving marketers problems.
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OBJECTIVE SET FOR PRESENT STUDY ARE TO FIND
• CONSUMER AWARENESS OF MUTUAL FUND OF BAJAJ CAPITAL • To know which criteria people consider while selecting mutual fund. • To know the investment priority of the people.
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DEFINING THE PROBLEM AND RESEARCH OBJECTIVES DEVELOPING THE RESEARCH PLAN COLLECTING THE INFORMATION ALALYSING THE INFORMATION PRESENTING THE FINDING
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The research design is a component of the research plan where various types of research carried is planned. Based on cost benefit and risk involved, the type of research design is chosen which would give solutions to the marketing problem at hand. The design of research study is based on the purposed of the study; if descriptive information is needed, then a quantitative study is likely to be undertaken; if the purpose is to get new ideas, then a qualitative study may in order. QUANTITATIVE RESEARCH DESIGN :This design includes the method for collecting the data, the sample design and the construction of data collection instrument. DATA COLLECTION METHOD :There are three basic ways to collect primary data in quantitative research; by observing behavior, by experimentation or by survey. I have selected the survey method by preparing a questionnaire and then randomly selecting 100 people to fill the questionnaire. I have also done telephonic short interviews with the advertisers. My data collection instrument i.e. questionnaire was interesting and very objective and easy to complete. It was close ended type.
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The research plan calls for gathering secondary data, primary data, or both. Secondary data consists of information that already exists somewhere, having been collected for another purpose. Otherwise the researcher has to gather primary data, which consists of original information for the specific purpose at hand. PRIMARY DATA The primary data used for my study are questionnaire – containing questions regarding MUTUAL FUND AWARENESS and about BAJAJ CAPITAL’s mutual schemes. Interviews for information from C.R.M.& Branch Head,MR. Hardik kothari and other employee of BAJAJ CAPITAL. SECONDARY DATA The secondary data was available from: ? ? ? ? Prospectors Bajaj Capital’s Record Internet Other company records
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There is two methods for sampling. It is called sampling methods. They are (1) probability sample method and (2) non probability sampling method. Now we discussed each method in detail. • PROBABILITY SAMPLE: 1. Simple random sample: Every number of the population has an equal chance of selection. 2. Stratified random sample: The population is divided into mutually exclusive groups and random samples are drawn from each group. 3. Cluster sample: The population is divided into mutually exclusive groups and the researches are draws a sample of the groups to interview • NON PROBABILITY SAMPLE: 1. Convenience Sample: The researcher selects the most accessible population members. 2. Judgment sample: The researcher selects population members who are good prospects for accurate information. 3. Quota sample: The researcher finds and interviews a prescribed numbers of people in each of several categories. The research on the topic called “CUSTOMER AWARENESS OF MUTUAL FUND” is done by using Non-Probability sample and under the head of Quota Sampling.
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• SAMPLING UNIT: The target population was divided into three segments i.e.
• Business Man • Govt. employee • Professional
Things like needs, its fulfilment and suggestions of all segments were collected for making this research success. • SAMPLE SIZE: About 100 people from different segment i.e. businessmen, govt. employees, professionals, etc. were taken as a sample size. As we know that large sample gives more reliable data but here because the population was divided in three segment such thing was made possible. • SAMPLING PROCEDURE: During my training days, I have divided the total time of training as per the requirement. It means any concern segment. If the population is high the more time was research for it. For e.g. the number of businessmen who has been taken as one of the target customers was high rather than other segments. So, the duration of research for different segment was decided as per requirement.
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? ?
QUESTION (1) GENDER :
Male [ ]
Female
[ ]
OBJECTIVE: objective behind asking gender of the people is that whether they are male or female. So we can know about their investment capacity. FINDINGS:
Particulars
Male Female
?
No. Of Sample Sample in %
73 27 73% 27%
Total
100
100%
?
CHART:
6% 13% 0% 4% 26% SELF STUDY RELATIVES EXECUTIVES ADVERTISEMENT FINANCIAL INSTITUES OTHER SOURCE
51%
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?
ANALYSIS :
Out of total sample of 100 people 73 were male and 27 were female. So, 73% were male and 27% were female.
?
QUESTION (2)
Age
?
OBJECTIVE : to know about the age of people so we can know about their interest in Mutual fund investment. FINDINGS:
Particulars
20-40 40-60 60 or more
?
No. Of Sample Sample in %
63 24 13 63% 24% 13%
Total
100
100%
?
CHART:
13%
20-40
24%
40-60 60 or more
63%
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?
ANALYSIS :
Out of total sample of 100 people 63% were between age of 20 to 40, 24% were between age of 40 to 60, 13% were age of 60 or more. ? QUESTION (3) OCCUPATION:
Business [ ] Govt. Employee [ ] Profession [ ] Others
?
Student [ ]
OBJECTIVE: To know about the occupation or profession of the
business.
?
FINDINGS:
Particulars
Businessmen Govt. Employee Professional Student Others
No. Of Sample Sample in %
33 21 32 7 7 33% 21% 32% 7% 7%
Total
100
100%
?
CHART:
7% 7% 33% Businessmen Govt. Employee Professional Student 32% Others
- 111 21%
?
ANALYSIS :
Out of total sample of 100 people 33 were business men, 21 were government employee, 32 were profession person, 7 student and 7 were included others category i.e. teachers, workers trust members etc. ? QUESTION (4) YOUR ANNUAL INCOME:
Upto 50,000 1,00,000 to 2,00,000
?
[ ] [ ]
50,000 to 1,00,000 [ ] 2,00,000 or more [ ]
OBJECTIVE:
know about which level income people invest more in mutual fund. Another thing is that to know about that how much savings done by the higher-level income people in mutual fund. ?
FINDINGS:
No. of Sample 7 29 41 23 100 Sample in % 7% 29% 41% 23% 100%
Annual Income UPTO 50,000 50,001 to 1,00,000 1,00,001 <= 2,00,000 2,00,001 and more than it Total
?
CHART:
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?
ANALYSIS :
Out of sample of 100 people 23% having income more than 2 lacs, 41% having the income more than 1 lac, 29%having the income more than 50,000 and remaining 7% having the income less than 50,000. ? QUESTION (5) DO YOU INVEST YOUR SAVINGS?
[ ] YES
?
[ ] NO
OBJECTIVE:
To know about how many people invest his or her savings in mutual fund as well as other source of investment. ?
FINDINGS:
Particulars Yes No Total No. Of People 87 13 100 Sample in % 87% 13% 100%
?
CHART:
13%
Yes No
- 113 87%
?
ANALYSIS:
Out of sample of 100 people 87% people invest their saving in different source of investment like… F.D., M.F., Stock Market, etc. and remaining 13% were not doing savings. ?
QUESTION (6): IF YES, THEN IN WHICH YOU ARE INTERESTED FROM THE FOLLOWING? ( RANK THEM )
Gold Stock Market Post Savings [ ] [ ] [ ] Mutual Fund Bank Savings Others [ ] [ ] [ ]
?
OBJECTIVE:
In reference to question 3, we know that 87 % people are investing their saving but in which sector they all are investing. From this question we know about the trend as well as thinking of the people’s mind. ?
FINDINGS
Sector GOLD MUTUAL FUND POST SAVINGS STOVK MARKET BANK DEPOSITE TOTAL No. Of People 8 22 6 41 23 100
8%
Sample in % 8% 22% 6% 41% 23% 100%
GOLD MUTUAL FUND POST SAVINGS STOVK MARKET BANK DEPOSITE
?
CHART
23%
RATING
22%
6% 41%
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?
ANLYSIS
Out of sample of 100 people their first preference for investment is, 22 % investing their savings in Mutual Fund, 23 % people investing their money in Bank Deposit, 41 % people investing in Stock Market, 6 % people investing their savings in other sources like… KVP, Post Office Schemes, etc. Remaining 8 % people investing their money in gold and real estate equally.
Term No. Of People Sample in % Long Term 37 37% Short Term 63 63% Total 100 100%
?
QUESTION (7) WHICH TIME PERIOD?
[ ] LONG TERM
Objective: From this question I know that current scenario of market that people in which term investing more.
[ ] SHORT TERM
?
FINDINGS:
?
CHART
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37% Long Term Short Term 63%
?
ANALYSIS
I found that out of 100 % people 37 % people invested in long run and remaining 63 % people invested in short term. I also knew that out of 37 % most of people invested their savings in more than 5 yrs investment schemes.
?
QUESTION (8)
ARE YOU AWARE ABOUT MUTUAL
[ ] NO
FUND?
[ ] YES
?
OBJECTIVE:
From this question I want to know that how many people aware of the Mutual Fund.
?
FINDINGS:
Particulars Aware Not aware Total No. Of People 67 33 100 Sample in % 67% 33% 100%
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? ?
CHART
33%
Aware 67% Not aware
ANALYSIS
Out of the 100 samples I found that 67 % know about mutual fund. But I also found that they all were not 100 % knowledge of Mutual Fun
?
QUESTION (9)
IF YES, HOW CAN YOU KNOW ABOUT
MUTUAL FUND?
By self study By relatives By executives [ ] [ ] [ ] From advertisement [ ] From financial institute [ ] From other source [ ]
?
OBJECTIVE:
From this question I want know that from which main source people come to know about Mutual Fund.
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?
FINDINGS:
SOURCE SELF STUDY RELATIVES EXECUTIVES ADVERTISEMENT FINANCIAL INSTITUES OTHER SOURCE TOTAL PROPLE (%) 5 5 15 20 10 2 57 Sample in % 9% 9% 26% 35% 18% 3% 100
?
CHART
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18%
4%
9% 9%
SELF STUDY RELATIVES EXECUTIVES ADVERTISEMENT FINANCIAL INSTITUES OTHER SOURCE
26% 34%
? ANLYSIS
Out of 48 people 9% people come to know about mutual fund by self study, 9% people come to know about mutual fund by relatives,26% people come to know about mutual fund by executives, 35% people come to know about mutual fund from the advertisement, 18% people come to know about mutual fund from the financial institute, 3% people come to know about mutual fund from the other sources like intenet.
?
QUESTION (10) IF YES, DO YOU INVEST IN MUTUAL
FUND?
[ ] YES [ ] NO
?
OBJECTIVE:
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From this question I want know that how many people investing in Mutual Fund.
?
FINDINGS:
Mutual Fund Yes No Total No. Of People 48 52 100 Sample in % 48% 52% 100%
?
CHART:
52%
48% Yes No
?
ANALYSIS
Out of 100 people I found that 48% were investing their money into mutual fund and 52% were not investing .
?
IF YES, WHAT % OF SAVINGS DO YOU INVEST IN MUTUAL FUND?
QUESTION (11)
Upto 25% [ ] 26 to 50% [ ] 51 to 75 % [ ] 76 to 100% [ ]
?
OBJECTIVE :
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From this question I want to know that of what % of savings people want to invest in Mutual Fund.
?
FINDINGS:
Investment from savings < 25 % 26 to 50 % 51 to 75 % 76 to 100 % Total No. Of People 18 12 12 6 48 Sample in % 37.5 25 25 12.5 100
?
CHART
13% 37% 25%
< 25 % 26 to 50 % 51 to 75 % 76 to 100 %
25%
?
ANALYSIS
Out of 100 people 48 were investing their money into Mutual Fund and out of it we found that 38% were investing upto 25% money from their saving, 25% were investing 26 to 50% money from their savings, 25% were investing 51 to 75% money from their savings, 12% were investing 76 to 100% money from their savings.
?
QUESTION (12) IN WHICH TYPE OF MUTUAL FUND DO
YOU INVEST?
[ ] Equity [ ] Balanced [ ] Debt
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?
OBJECTIVE:
Many people invest their money in different schemes of mutual fund. So, from this question I want to know that at which % of people doing investment more in which type of Mutual Fund.
?
FINDINGS:
Type of MF EQUITY BALALNCED DEBT Total No. Of People 12 24 12 48 Sample in % 25% 50% 25% 100%
? C HART
25% 25% EQUITY BALALNCED DEBT
50%
?
ANALYSIS
Out of 100,48 people who were investing their money into the Mutual fund from them 25% people investing their money into Equity Mutual fund, 50% people investing their money into the Balanced Mutual fund and 25% people investing their money into debt Mutual Fund.
?
QUESTION (13) IN WHICH MUTUAL FUND DO YOU INVEST?
Prudential ICICI Reliance [ ] [ ] Birla Sunlife [ ] TATA [ ] HDFC Other [ ] [ ]
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Kotak Mahendra
[ ]
SBI
[ ]
?
OBJECTIVE:
From the above question I want to analyze that in which mutual fund people want to invest more.
?
FINDINGS:
Name of MF Co. Prudential ICICI Reliance Kotak Mahendra Birla Sunlife TATA SBI HDFC Other Total No. Of People 5 12 2 4 8 6 10 1 48 Sample in % 10% 25% 4% 8% 17% 13% 21% 2% 100%
?
CHART
16%
14% Prudential ICICI Reliance Kotak Mahendra Birla Sunlife 32% TATA SBI
22%
11%
5%
?
ANALYSIS
Out of 48 people 10% were invested their savings into prudential ICICI mutual fund, 25% were invested their savings into reliance mutual fund , 4% were invested their savings into Kotak Mahendra mutual fund, 8% were invested their savings into Birla Sun LIfe mutual fund, 17% were invested their savings into TATA mutual fund, 13% were invested their savings into SBI mutual fund, 21% were invested their savings into HDFC mutual fund and 2% were invested their savings into other mutual fund. QUESTION (14) WHY DO YOU INVEST IN MUTUAL FUND?
?
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[ [
] Tax benefit ] Liquidity
[ [
] Higher return & safety ] Variety of investment
?
OBJECTIVE:
From the above question I want to know that how many people get the benefit of tax from investing in mutual fund or for the higher return or liquidity.
?
FINDINGS:
Purpose From MF TAX Benefit Higher Return Liquidity Variety of Investment Total No. Of People 34 12 0 2 48 Sample in % 71% 25% 0% 4% 100%
?
CHART
4% 0% 25% TAX Benefit Higher Return Liquidity 71% Variety of Investment
?
ANALYSIS
Out 48 people who invested their savings in the MUTUAL FUND out of them 71% people invested their money in mutual fund for the tax benefit,25% people
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invested their money in mutual fund for the higher return and 4% people invested their money in mutual fund for the investment.
?
QUESTION (15)
Yes [ ]
ARE YOU AWARE ABOUT BAJAJ CAPITAL? No [ ]
?
OBJECTIVE:
From this question I want to know that people want more lump sum investing or in systematic manner.
?
FINDINGS:
AWARE Yes No Total No. Of People 47 53 100 Sample in % 47% 53% 100%
?
CHART
47% 53%
Yes No
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?
ANALYSIS
Out of 100 people 47% people were aware about Bajaj Capital and 53% people were not.
?
QUESTION (16)
KNOW? By self study [ ] By relatives [ ] By executive [ ]
IF YES , THEN FROM WHICH SOURCE YOU COME TO From advertisement From financial institute From other source [ ] [ ] [ ]
?
OBJECTIVE:
From this question I want know that from which main source people come to know about Bajaj Capital.
?
FINDINGS:
SOURCE SELF STUDY RELATIVES EXECUTIVES ADVERTISEMENT FINANCIAL INSTITUES OTHER SOURCE TOTAL
6% 0%
PROPLE 0 2 12 24 6 3 47
4% 26%
Sample in % 0% 4% 26% 51% 13% 6% 100
SELF STUDY RELATIVES EXECUTIVES ADVERTISEMEN T FINANCIAL INSTITUES- 126 OTHER SOURCE
?
CHART
13%
51%
?
ANLYSIS
Out of 48 people 4% people come to know about mutual fund by relatives,26% people come to know about mutual fund by executives, 51% people come to know about mutual fund from the advertisement, 13% people come to know about mutual fund from the financial institute,6% people come to know about mutual fund from the other sources like internet.
?
QUESTION (17) OBJECTIVE:
DO YOU KNOW THE MUTUAL FUND SCHEAMES AVAILABLE AT BAJAJ CAPITAL? Yes [ ] No [ ]
?
From this answer I want to know that how many people aware about the mutual fund schemas available at Bajaj Capital.
?
FINDINGS:
AWARE Yes No Total No. Of People 43 57 100 Sample in % 43% 57% 100%
?
CHART
43% Yes 57% No
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?
ANALYSIS
Out of 100 people 43% people were aware about Bajaj Capital and 57% people were not.
?
QUESTION (18)
DO YOU THINK THAT MUTUAL FUND IS A RELIABLE SOURCE FOR INVESTMENT? IF YES, THEN WHY? IF NO, THEN WHY?
?
OBJECTIVE:
From this answer I want to know that how many people believe that the mutual fund is reliable source for investment or not and why.
?
FINDINGS:
Reliable Yes No Total
No. Of People 48 9 57
Sample in % 84% 16% 100%
?
CHART
16%
? ANALYSIS
Yes No
Out of 100 people 57% 84% people aware about the mutual fund and from them 84% people who invested their saving in the mutual fund they believe that the mutual fund is reliable source for investment because most of them
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think that in compare to stock market it is less risky, give more & fixed return and more beneficial than other. Other 16% people who not invested their money in mutual fund they believe that the mutual fund is not reliable source for investment because most of them think than investing in mutual fund is not as trustful than the invest in the bank & post deposits and they can get more return in the other investment than the mutual fund.
“To err is humane and to forgive is divine”. Concentrating on the first par, we can say that no body is 100% perfect in what he/she does. By knowingly or unknowingly he commit mistake. Along with the analysis of the data, we I have also tried to analyze the problem I have faces and the limitations that came on my way, which are as followed. • The respondents may not give correct answers due to personal bias. • The number of respondent of survey was 150 which were not enough for the study of this segment of market. • The research was limited to Rajkot City only so there is limitation of area for an appropriate analysis. • As I am not the expert in this field, the results may not be as perfect as it should be for the company to take any action related to this problem.
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• It is one of the many study and therefore doesn’t cover a large number of respondents and even grater area. Though there were some limitations in my way, than also I have tried my best level to bring out the right picture, which is nearly reflecting the true situation that is prevailing in the market.
It is essential for any research to make. Findings in relation with the objects set at the time of starting the research. The following findings are concluded at the end of the research and the further analysis has been done on the basis of such findings like… • • • The awareness of “Mutual Fund” has very less response. So the more promotional activities are left to be done particularly for this product. The influence of “Mutual Fund” can also increase with the family, friends, through advisors & more investment center. The concept of Mutual Fund is not broad because during the research I found that after sales service is not proper provided to the customer regularly. During the research I found that Govt. employees is investing in the mutual fund for the tax benefit & businessmen is doing investment in the mutual fund for the higher return and safety. I also found that the income level more than 1 lac is supposed to take entry in mutual fund. I also found that customer only investing which has high brand image like. RELIANCE, TATA, SBI, FRANKLIN TEMPLETON,ETC.
•
• •
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As per the research data I found that Mutual Fund is the reliable source for investment only the reasons that… • Higher Return • Less Risk • More Liquidity • Less Expenses, etc
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CONSUMER AWARENESS OF MUTUAL FUND OF BAJAJ CAPITAL
Dear respondent,
You are requested to fill up this form and to give your valuable opinion regarding the following question and that will be used for study purpose only.
Questionnaire
1. 2. NAME: _______________________________________________________ ADDRESS: _______________________________________________________ _______________________________________________________ 3. 4. 5. GENDER: Male [ ] AGE: ________________ Female [ ]
OCCUPATION: Business Profession [ ] [ ] Govt. Employee Others [ ] [ ] Student [ ]
6.
YOUR ANNUAL INCOME: Upto 50,000 [ ] 1,00,000 to 2,00,000 [ ] 50,000 to 1,00,000 2,00,000 or more [ ] [ ]
7.
DO YOU MAKE AN INVESTMENT FOR SAVINGS? Yes [ ] No [ ]
8.
IF YES, THEN FROM THE FOLLOWING IN WHICH YOU ARE INTERESTED? ( RANK THEM ) Gold [ ] Stock Market [ ] Mutual Fund [ ] Bank Savings [ ] Post Savings [ ] Others [ ]
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9.
FOR HOW MUCH TIME PERIOD YOU ARE INVESTING? Long Term [ ] Short term [ ]
10.
ARE YOU AWARE ABOUT MUTUAL FUND? Yes [ ] No [ ]
11.
IF YES, HOW CAN YOU COME TO KNOW ABOUT THE MUTUAL FUND? By self study [ ] By relatives [ ] By executive [ ] From advertisement From financial institute From other source [ ] [ ] [ ]
12.
DO YOU INVEST IN MUTUAL FUND? Yes [ ] No [ ]
13.
IF YES, THEN WHAT PERCENTAGE OF SAVINGS DO YOU INVEST IN MUTUAL FUND ? Upto 25% [ ] ] 26 to 50% [ ] 51 to 75 % [ ] 76 to 100% [
14.
IN WHICH TYPE OF MUTUAL FUND DO YOU INVEST? Equity [ ] Balanced [ ] Debt [ ]
15.
IN WHICH MUTUAL FUND DO YOU INVEST ? Prudential ICICI Reliance Kotak Mahendra [ ] [ ] [ ] Birla Sunlife [ ] TATA [ ] SBI [ ] HDFC Other [ ] [ ]
16.
WHY DO YOU INVEST IN MUTUAL FUND? Tax benefit Liquidity For Savings [ ] [ ] [ ] Higher return & safety Variety of investment For other purposes [ ] [ ] [ ]
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17.
ARE YOU AWARE ABOUT BAJAJ CAPITAL? Yes [ ] No [ ]
18.
IF YES , THEN FROM WHICH SOURCE YOU COME TO KNOW? By self study [ ] By relatives [ ] By executive [ ] From advertisement From financial institute From other source [ ] [ ] [ ]
19.
DO YOU KNOW THE MUTUAL FUND SCHEAMES AVAILABLE AT BAJAJ CAPITAL? Yes [ ] No [ ]
20.
DO YOU THINK THAT MUTUAL FUND IS A RELIABLE SOURCE FOR INVESTMENT? IF YES, THEN WHY? IF NO, THEN WHY?
THANKING YOU, PREPARED BY VYAS RACHANA M.
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?
BOOKS:• Human Resource Management Management & Personnel
- K. Aswatthappa • Marketing Management
--- PHILIP KOTLER
• Finance Management - B. S. Shah • Personnel Management - C. B. Mamoria ? WEBSITES:
• www.bajajcapital.com • www.surveyconsole.com • www.google.com
?
OTHERS:
• Advisor Magazine published by Bajaj Capital Ltd. • Money Multiplying News published by Bajaj Capital ltd.
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doc_702004379.doc