IIFL Final Internship Report

8/20/2019 IIFL Final Internship Report

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PREFACE

I have great pleasure in presenting my project to the MUMBAI UNIVERSITY My topic is !MAR"ET

S#$%IN& AN' ANA(YSIS $) )INAN#IA( INVESTMENT * ($AN %R$'U#TS+ I have ma,e

sincere e--orts to ma.e this project in-ormative an, I am sure it /oul, justi-y the same

The project gave me an opportunity to stu,y various aspects relate, to -inancial investment an, loan

pro,ucts It /as a goo, learning e0perience throughout an, it /ill certainly 1ene-it the rea,ers too I

am 2uite assertive that my project /ill help the stu,ents o- MUMBAI UNIVERSITY

My project covers the 1asic .no/le,ge o- -inancial investment an, loan pro,ucts in IN'IA3 /hich is

essential to un,erstan, ho/ these pro,ucts3 is operate, in II)( an, ho/ it has ,evelope, in our country

to greater e0tent in present age ,ue to technical a,vancements

Through this project I have trie, to -in, out the increasing tren, o- -inancial investment an, loan ta.ing

a1ilities My topic /ill ,e-initely help the researchers /ho /ant to research relate, to -inancial

investment * loan pro,ucts

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EXECUTIVE SUMMARY

As a part o- my stu,y curriculum it is necessary to con,uct a project report IN'IA IN)$(INE lt, has

given me opportunity to /or. in an organi4ation an, get e0posure to/ar,s the emerging scenario II)(

provi,es various .in,s o- loans an, also assist in managing in,ivi,ual as /ell institutional -un,s 1y provi,ing their e0clusive services

My topic -or the project is title, as !MAR"ET S#$%IN& AN' ANA(YSIS $) )INAN#IA(

INVESTMENT * ($AN %R$'U#TS+ /hich mainly emphasi4es on three -inancial pro,ucts ie &ol,

(oan3 Mutual )un,s3 an, Insurance* as /ell it also comprises o- other -inancial pro,ucts

This project helps me to un,erstan, various -inancial investment an, loan pro,ucts3 this project report

eluci,ates &ol, (oan+s -eature3 loo.s at the in,ustry tren,3 mar.et players3 mar.et si4e3 an, their

revenues an, e0plain the opportunity an, challenges e0isting in the sector This project is carrie, out to

have an over vie/ o- mutual -un, in,ustry an, to un,erstan, investors perception a1out mutual -un,

This project also e0plains the tie5ups /ith various Insurance companies 1y II)(

This project helps me to un,erstan, attri1utes o- investors an, those /ho ta.e loan This project has

1een ,one to analy4e -inancial investment an, loan pro,ucts This is ,one 1y con,ucting surveys in

highly populate, area o- #hurchgate These ,ata has 1een processe, an, then interprete, in the report

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PROBLEM STATEMENT

!MAR"ET S#$%IN& AN' ANA(YSIS $) )INAN#IA( INVESTMENT AN' ($AN %R$'U#TS+

SIGNIFICANCE OF THE STUDYThis stu,y tries to cover various -inancial investment an, loan pro,ucts in II)( The stu,y o- this

project can 1e learning para,igm to aca,emics

&ol, loan is the 2uic.est ,is1urse, loan pro,uct in loan segment in II)( It ta.es har,ly -i-teen minutes

to get ,is1urse, in II)( once the gol, is ple,ge, Accor,ing to /orl, gol, council3 imports in April5

6une 2uarter are hea,e, -or a recor, o- 7885988 tones3 /hich is a near :88; year on year increase


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PURPOSE

To stu,y the attri1utes o- 1orro/er

This stu,y tries to un,erstan, /hat loan process is

This stu,y ,escri1es organi4e, an, non5organi4e, loan provi,ers

To .no/ a1out mutual -un,s * it+s -unctioning

This stu,y helps in un,erstan,ing ,i--erent scheme in mutual -un,s

To stu,y 1ene-its o- mutual -un,s to investors

To stu,y various insurance policy in II)(

To stu,y ho/ II)( /or.s 8 ? %eople are not a/are a1out gol, loan

>@ ? %eople are a/are a1out gol, loan

An,

>8 ? people ,o trust mutual -un,s

>@ ? people ,o not trust mutual -un,s

METHODOLOGY

'escriptive metho,ology is use, -or this project

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PERIOD OF THE STUDY

T/o months

THE STUDY AREA

#hurchgate

DATA

%rimary ,ata /as collecte, through 2uestionnaire3 -ace to -ace communication /ith some gol, loan

companies as /ell as /ith some pu1lic investors

Secon,ary ,ata /as collecte, -rom the /e1sites3 maga4ines3 an, ne/spapers

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ABOUT IIFL

IN'IA IN)$(INE -inance lt, is one o- the largest companies gro/ing company in gol, loan sector3

II)( is also one o- the lea,ing 1ro.erage -irms in In,ia

The company is engage, in activity o- mortgage -inancing3 loan against property securities3 gol, loan3

margin -un,ing an, other consumer -inancing pro,ucts

Mr Nirmal 6ain is the -oun,er an, chairman o- II)( (T' >e is %&'M -rom IIM Ahma,a1a,3 a

#>ARTERE' A##$UNTANT an, a ran. hol,er #$ST A##$UNTANT >is pro-essional trac.

recor, is e2ually outstan,ing >e starte, his career in @ /ith >in,ustan (ever lt,3 the In,ian arm o-

Unilever

'uring his stint /ith >in,ustan lever3 he han,e, a variety o- responsi1ilities3 inclu,ing e0port an,

tra,ing in agro commo,ities >e contri1ute, immensely to/ar,s the rapi, an, pro-ita1le gro/th o-

>in,ustan (ever+s commo,ity e0port 1usiness3 /hich /as then the nation+s as /ell as companies top

priority >e -oun, %R$BITY RESEAR#> * SERVI#ES %vt(t,in @C %erhaps the -irst

in,epen,ent e2uity research company in In,ia

>is /or. set ne/ stan,ar,s -or e2uity research in In,ia Mr 6ain /as one o- the -irst entrepreneurs in

In,ia to sei4e the internet opportunity3 /ith the launch o- ///in,iain-oline com in @ Un,er his

lea,ership II)( not only steere, through the ,ot com 1ust an, one o- the /orst stoc. mar.et ,o/ntren,

1ut also gre/ -rom strength to strength II)( gol, loan is a liste, company /ith a consoli,ate, group

net /orth o- a1out Rs@88 crores

II)( consoli,ate, net pro-it rose 1y @@; 2uarter on 2uarter to Rs D7: crore in the thir, 2uarter

-inancial year :8@:5:8@7

#onsoli,ate, total income gre/ 1y; to Rs 9 crore -rom C@ crore ,uring the same perio,

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#onsoli,ate, earnings 1e-ore interest3 ta03 ,epreciation an, amorti4ation FEBIT'AG /ent up 1y @9C;

HoH to Rs7CC crore in $cto1er 'ecem1er 2uarter

The group has consistent an, uninterrupte, trac. recor, o- pro-its an, ,ivi,en,s since its listing in

:88C The company is liste, on 1oth E0changes an, also tra,es in ,erivatives segment II)( gol, loanis present every noo. an, cranny o- the country3 /ith over 7888 1usiness location across C88 cities in

In,ia An in,ivi,ual can reach us in variety o- /ays online3 over the phone3 an, through 1ranches

Corpora! Sr"#"r!

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INFOLINE LOGO INDIA

H$%or& ' ($!%o*!%

1++, A %(a -ro"p o. pro.!%%$o*a% .or(!/ a* I*.or(a$o* S!r0$#!% Co(pa*&

The company /as -orme, in $cto1er @C /ith a vision to pro,uce high 2uality3 un1iase,3 in,epen,ent

research on the In,ian economy3 1usiness3 in,ustries an, corporate

T! "a$& -!% r!#o-*$$o*

The 2uality o- this research soon resulte, in a client list that rea, li.e a /hos /ho o- In,ian 1usiness

an, -inance3 -rom >in,ustan (ever to Tata+s3 -rom #risil to Mc"insey3 -rom SBI to #iti1an.

O*4ar/% a*/ "p4ar/%5

II)( launche, their research pro,ucts J %ro1ity :88 #ompany Reports3 -ollo/e, Economy %ro1e3

Sector Reports covering %harmaceuticals3 In-ormation Technology3 $il * &as an, )M#& among

others (ea,ing )IIs3 1ro.ers3 1an.s an, companies /ere imme,iate su1scri1ers

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T! a"*# o. 444$*/$a$*.o$*!#o(

Up poppe, a cra4y i,ea J i- all this research /ere to 1e availa1le -ree on the internet3 the num1er o-

users coul, /ell leap straight -rom hun,re,s to millions They too. the plunge an, thus

///in,iain-olinecom /as 1ornK #'# Fno/ ActisG /as the -irst private e2uity -irm to invest USL@mn

La"*#!/ o*$*! ra/$*- ro"- ///Cpaisacom

IIFL #o((o/$$!% $#!*%!

II)( /ere again at the -ore-ront to o--er commo,ities 1ro.ing to retail investors A coinci,ence may 1e3

1ut this /as /hen our magical lin.age 1et/een transactional an, a,visory e0pertise 1egan

IIFL Ma$/!* IPO 6 ! $pp$*- po$*

(isting on the NSE an, BSE gave impetus an, momentum to e0pansion3 scaling up an, -un,ing It /as

again -ull steam ahea, The I%$ /as at Rs@C: Fa,juste, -or splitG an, sharehol,ers have receive,

Rs@CD 1y /ay o- ,ivi,en, The price /as Rs8C as at )Y@7 en,

277+ Co((!*#!/ o"r !*/$*- 8"%$*!%%

2711 T! La"*# o. IIFL M""a F"*/

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http://www.5paisa.com/http://www.5paisa.com/http://www.5paisa.com/


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II)( Incorporate, the Assets Management #ompany3 an, in ,oing so3 ensure, our coverage o- the

entire gamut o- -inancial service

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LITERATURE REVIE9

Investing is perilous enough /hen investing in stoc.s an, 1on,s or even in mutual -un,s3 1ut it can get,o/nright ,angerous /ith the increase in comple0ity o- many -inancially engineere, investment

pro,ucts )ollo/ing the :88D su1prime mortgage melt,o/n3 /hich a--ecte, 1oth Main Street to


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T! R$%:%

#omple0 investments may have ris.s that are not apparent3 or easy to un,erstan, As a result3 it might

1e ,i--icult to ,etermine ho/ the investment /ill ma.e money

The investment management in,ustry is a uni2ue space /here a ,isproportionate portion o- the pro-its

are capture, 1y the asset managers /ith little to none o- the ris. e0posure >o/ever3 this is a1out to

change Technology innovation3 glo1ali4ation o- mar.ets3 an, recent mar.et volatility such as the :88

mar.et collapse are ,riving pain-ul changes F-or someG in the asset management in,ustry

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GOLD LOAN

METHODS AND PROCESS OF GETTING GOLD LOAN

@ )irst chec. the gol, /eight an, evaluate its purity accor,ingly an, in-orm the customer

a1out valuation o- gol, I- he is /illing to procee, -urther then the ne0t proce,ure starts

: #hec. all ,ocuments are vali, or not

7 I' proo- an, a,,ress proo- is must

9 I- all ,ocuments are vali,3 veri-ie, 1y the customer care e0ecutive then the loan is

,is1urse,

C Basic in-ormation is en2uire, an, store, in the company+s computer

Veri-ication o- customer+s phone num1er is ,one

D &ol, ornament+s an, customer+s photograph is ta.en /hile creating loan account

#ustomer+s name is entere, in "Y# register hel, /ith security guar,

(ess ,ocumentation is ,one

@8 Seven ,ays grace perio, is provi,e, -or the payment o- interest3 i- not pai, then customer is

penali4e, on the principal amount

@@ Interest payment can 1e ,one in any 1ranch o- gol, loan

@: Interest rate @; to :9D; can 1e charge, accor,ingly

@7 (oan amount is o--ere, -rom RsC888 to Rs@83 883888

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COMMON RULES TO CHEC; THE GOLD

@ Separate the ornaments

: Assist the average /eight

7 6e/elry slip

9 Soun, vi1ration

C >allmar. chec.ing

Aci, an, salt test

D #hec. the -inishing o- the ornaments

Veri-ication o- the "Y#

Ta.e photograph o- customer an, ornament

GOLD ORNAMENTS ACCEPTED FOR LOAN AGAINST GOLD

Srno $rnaments

@ Bangles

: #hains

7 Mangalsutra

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9 Earrings

C )inger Rings

;EY FEATURES OF GOLD LOAN

The .ey -eatures o- gol, loans in the In,ian conte0t are easy ,is1ursal3 -e/ limits on cash

usage3 high (TV+s an, -le0i1ility it is easy to see /hy gol, loans are 1ecoming more an, more

popular


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Huic.

,is1ursal

NB)#+s an, the unorgani4e, sector ,is1urse loans at a much

-aster pace Fas lo/ as three minutes to -e/ hoursG as

compare, /ith 1an.s /hich may ta.e -e/ ,ays

>igh

(TV ratio


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Multiple

repayment

options

Repayment can 1e structure, as just interest amount /ith

principal 1eing repai, at the en, o- the perio, in one lump

sum Repayment through EMI3 covering interest as /ell as

principal3 can also 1e an option

The .ey ,i--erentiators -or NB)#+s as compare, to the 1an.s an, cooperatives are

• Huic. loan approvals an, ,is1ursals3 /ith minimal ,ocumentations

• Multitu,e o- loan options /ith higher (TV+s

• &reater accessi1ility ,ue to 1etter penetration

• Non 1an.a1le customers are also serve,

• Better operation cost structure vis5O5vis 1an.s

• #onvenient hours o- operation

• )le0i1ility provision o- very small an, very large loan amounts

RIS; TO LENDERS AND BORRO9ERS5

Since len,ers ta.e possession o- the gol, assets in a loan transaction3 in case o- a the-t they may not

have su--icient -un,s to compensate all the 1orro/ers -or their loss in its entirety

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This is more important -or loans place, in the unorgani4e, sector 1an.sPNB)# usually has 1etter

security an, insurance coverage )urthermore3 -inancial pac.ages cannot compensate -or personal

attachment a 1orro/er has /ith the gol, asset

Moreover3 a sharp ,ecline in gol, prices increases the original (TV3 a len,er may re2uire an imme,iate

recovery o- any amount that e0cee,s the original (TV ratio3 1ut the 1orro/er may 1e una1le to pay this

amount

Restructuring o- the loan may 1e re2uire, in these cases A,,itionally3 i- the value o- the ple,ge, asset

,eclines3 a 1orro/er may 1e more /illingly to ,e-ault on loan This poses a serious concentration ris.

to the len,ers3 especially to the NB)#+s that have a high e0posure to gol, loans an, len, at high (TV

ratios

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ORGANISATIONAL STRUCTURE OF IIFL GOLD LOAN BRANCH

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Gold Valuer Gold Valuer

ASSISTANT BRANCHMANAGER

BRANCH MANAGER

Customer careexecutive




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COMPETITORS OF IIFL IN GOLD LOAN MAR;ET

ICICI Ba*:

(oan against gol, an, gol, ornaments

I#I#I 1an. presents Qloan against gol, an, gol, ornaments3 ,esigne, to provi,e li2ui,ity against gol,

/ithout having to sell them

This pro,uct is i,eal to meet agriculture re2uirements li.e cultivation3 ,airy3 poultry -isheries3 etc gol,

coin an, gol, ornaments lying i,le can 1e put to pro,uctive use 1y availing loan against gol,

T>E I#I#I BAN" E'&E

• >assle -ree 2uic. processing o- loans

• Simpli-ie, paper /or.s

• Easy payment options

• Attractive interest rate * (TV

• (oan amount ranging -rom Rs @8388 to Rs @C3883888

MANNAPPURAM F$*a*#! L/

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In,ia+s -irst liste, * highest cre,it rate, &ol, (oan #ompany

$vervie/ o- the company the MANNA%%URAM )inance (t, has in recent years emerge, as a major

1usiness house un,er the ste/ar,ship o- Shri V% Nan,a.umar3 the e0ecutive chairman o- the company

this company+s main activities are pa/n 1ro.ering an, money len,ing out on mo,est scale

SERVI#ES

• (oan against &ol,

• Money Trans-er

• )oreign e0change

ATTRA#TIVE )EATURES

• (oan availe, in C minutes

•


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MUTHOOT F$*a*#!

Muthoot )inance3 In,ia+s largest gol, loan company is the -irst choice In,ians /ho /ant to ma.e their

,ream reality

May the ,ream 1e to start their o/n 1usiness or to 1uy their o/n house3 Muthoot )inance have helpe,

almost every In,ian+s ,ream come true

Truste, over 1y over D888 customers every ,ay3 Muthoot )inance gol, loan has services an, pro,ucts

that -it the nee, o- any customers3 ma.ing it 2uic.est3 most convenient an, sa-ety /ay to ta.e a gol,

loan

ATTRA#TIVE )EATURES

• (oan ,is1ursal in C minutes

• (oan amount ranging -rom Rs@C88 to @ crore

• Minimal ,ocumentation

• >igh 2uality customer care service in short response time

• &ol, loan availa1le in 788 Muthoot 1ranches

HDFC

• Instant loans availa1le on the gol, je/elry you o/n

• Repayments only 1y servicing regular interest on the loan

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• Assure, security o- your gol, je/elry

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MUTUAL FUNDS

INTRODUCTION

Investment in share mar.ets are in-luence, 1y the analysis * reasoning /hich help in pre,icting the

mar.et to some e0tent $ver the past years a num1er o- technical * theories -or analysis have evolve,3

these com1ine, /ith mo,ern technology gui,es the investor The 1ig players in the mar.et3 li.e

)oreign Institutional Investors3 Mutual )un,s3 etc have the e0pertise -or various analytical tools *

ma.e use o- them The small investors are not in a position to 1ene-it -rom the mar.et the /ay Mutual

)un,s can ,o &enerally a small investor+s investments are 1ase, on mar.et sentiments3 insi,e

in-ormation3 through grapevine3 tips * intuition The small investors ,epen, on 1ro.ers an, 1ro.erage

house -or his investments They can invest through the Mutual )un,s /ho are more e0perience, an,

e0pert in this -iel, than a small investor himsel-

In recent years a large num1er o- players have entere, into his mar.et The project has 1een carrie, out

to have an overvie/ o- Mutual )un, In,ustry an, to un,erstan, investor+s perception a1out Mutual

)un,s in the conte0t o- their tra,ing pre-erence3 e0plore investor+s ris. perception * -in, out their

pre-erence over Top Mutual )un,

INDUSTRY PROFILE

Structure o- the In,ian Mutual )un, In,ustry

The largest categories o- Mutual )un,s are the ones -loate, 1y the private sector an, 1y )oreign Asset

Management #ompanies The largest o- these are %ru,ential I#I#I AM# an, Birla Sun (i-e AM# The

aggregate corpus o- assets manage, 1y this category o- AM#s is in e0cess o- Rs7C8 1illion

Earlier the In,ian Mutual )un, in,ustry /as ,ominate, 1y the Unit Trust o- In,ia /hich has a total

corpus o- RsD88 1illion collecte, -rom more than :8million investors The UTI has many

-un,sPschemes in all categories ie e2uity3 1alance,3 income etc /ith some 1eing open5en,e, an,

some 1eing close,5en,e, The Unit Scheme @9 commonly re-erre, to as US 93 /hich is a 1alance,

-un,3 is the 1iggest scheme /ith a corpus o- a1out Rs:88 1illion

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UTI /as -loate, 1y -inancial institutions an, is governe, 1y a special Act o- %arliament Most o- its

investors 1elieve that the UTI is government o/ne, an, controlle,3 /hich3 /hile legally incorrect3 is

true -or all practical purposes

The secon, largest categories o- mutual -un,s are the ones -loate, 1y nationali4e, 1an.s #anara 1an.

Asset Management -loate, 1y #anara Ban. an, SBI )un,s Management -loate, 1y the State Ban. o- In,ia are the largest o- these &I# AM# -loate, 1y the &eneral Insurance #orporation an, 6eevan Bima

Sahayog AM# -loate, 1y the (I# are some o- the other prominent ones The aggregate corpus o- -un,s

manage, 1y this category o- AM#s is a1out Rs:88 1illion

ABOUT MUTUAL FUNDS

A Mutual )un, is a trust that pools the savings o- a num1er o- investors /ho share a common -inancial

goal The money thus collecte, is then investe, in capital mar.et instruments such as shares3

,e1entures an, other securities The income earne, through these investments an, the capital

appreciation reali4e, is share, 1y its unit hol,ers in proportion to the num1er o- units o/ne, 1y them

Thus a Mutual )un, is the most suita1le investment -or the common man as it o--ers an opportunity to

invest in a ,iversi-ie,3 pro-essionally manage, 1as.et o- securities at a relatively lo/ cost The -lo/

chart 1elo/ ,escri1es 1roa,ly the /or.ing o- a mutual -un,

• The structure o- Mutual )un,s in In,ia is governe, 1y SEBI FMutual

)un,G Regulations3 @

• It is man,atory to have a three tier structure o- Sponsor J Trustee J Asset Management

#ompany

• The trust is esta1lishe, 1y a Sponsor or more than one sponsor /ho is li.e a promoter o- a

company >e appoints the Trustees /ho are responsi1le to the investors o- the -un,

• The Trustees o- the mutual -un, hol, its property -or the 1ene-it o- the unit hol,ers

• Asset Management #ompany FAM#G approve, 1y SEBI is the 1usiness -ace o- the mutual -un,

as it manages all the a--airs o- the -un, 1y ma.ing investments in various types o- securities

• #usto,ian3 /ho is registere, /ith SEBI3 hol,s the securities o- various schemes o- the -un,s in

its custo,y

9HY MUTUAL FUNDS

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An investor normally prioriti4es his investment nee,s 1e-ore un,erta.ing an investment So ,i--erent

goals /ill 1e allocate, ,i--erent proportions o- the total ,isposa1le amount Investments -or speci-ic

goals normally -in, their /ay into the ,e1t mar.et as ris. re,uction is o- prime importance This is the

area -or the ris. a,verse investors an, here3 mutual -un,s are generally the 1est option The reasons arenot ,i--icult to see

$ne can avail o- the 1ene-its o- 1etter returns /ith a,,e, 1ene-its o- anytime li2ui,ity 1y investing in

open5en,e, ,e1t -un,s at lo/er ris. Many people have 1urnt their -ingers 1y investing in -i0e,

,eposits o- companies /ho /ere assuring high returns 1ut have gone 1ust in course o- time lea,ing to

,istraught investors as /ell as pen,ing cases in the #ompany (a/ Boar,

This ris. o- ,e-ault 1y any company that one has chosen to invest in3 can 1e minimi4e, 1y investing in

mutual -un,s as the -un, managers analy4e the companies+ -inancials more minutely than an in,ivi,ual

can ,o as they have the e0pertise to ,o so They can manage the maturity o- their port-olio 1y investing

in instruments o- varie, maturity pro-iles Since there is no penalty on pre5mature /ith,ra/al3 as in the

cases o- -i0e, ,eposits3 ,e1t -un,s provi,e enough li2ui,ity Moreover3 mutual -un,s are 1etter place,

to a1sor1 the -luctuations in the prices o- the securities as a result o- interest rate variation an, one can

1ene-its -rom any such price movement

Apart -rom li2ui,ity3 these -un,s have also provi,e, very goo, post5ta0 returns on year to year 1asis

Even historically3 /e -in, that some o- the ,e1t -un,s have generate, superior returns at relatively lo/

level o- ris.s $n an average ,e1t -un,s have poste, returns over @8 percent over one5year hori4on The

1est per-orming -un,s have given returns o- aroun, @9 percent in the last one5year perio, In nutshell

/e can say that these -un,s have ,elivere, more than /hat one e0pects o- ,e1t avenues such as post

o--ice schemes or 1an. -i0e, ,eposits Though they are charge, /ith a ,ivi,en, ,istri1ution ta0 on

,ivi,en, payout at @8 percent Fplus a surcharge o- @8 percentG3 the net income receive, is still ta0 -ree

in the han,s o- investor an, is generally much more than all other avenues3 on a post5ta0 1asis

Moving up in the ris. spectrum3 /e have people /ho /oul, li.e to ta.e some ris. an, invest in e2uity

-un,sPcapital mar.et >o/ever3 since their appetite -or ris. is also limite,3 they /oul, rather have some

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e0posure to ,e1t as /ell )or these investors3 1alance, -un,s provi,e an easy route o- investment

Arme, /ith the e0pertise o- investment techni2ues3 they can invest in e2uity as /ell as goo, 2uality

,e1t there1y re,ucing ris.s an, provi,ing the investor /ith 1etter returns than he coul, other/ise

manage Since they can reshu--le their port-olio as per mar.et con,itions3 they are li.ely to generate

mo,erate returns even in pessimistic mar.et con,itions

This ris. o- ,e-ault 1y any company that one has chosen to invest in3 can 1e minimi4e, 1y investing in

mutual -un,s as the -un, managers analy4e the companies+ -inancials more minutely than an in,ivi,ual

can ,o as they have the e0pertise to ,o so They can manage the maturity o- their port-olio 1y investing

in instruments o- varie, maturity pro-iles Since there is no penalty on pre5mature /ith,ra/al3 as in the

cases o- -i0e, ,eposits3 ,e1t -un,s provi,e enough li2ui,ity Moreover3 mutual -un,s are 1etter place,

to a1sor1 the -luctuations in the prices o- the securities as a result o- interest rate variation an, one can

1ene-its -rom any such price movement

Ne0t come the ris. ta.ers Ris. ta.ers 1y their very nature3 /oul, not 1e averse to investing in high5

ris. avenues #apital mar.ets -in, their -ancy more o-ten than not3 1ecause they have historically

generate, 1etter returns than any other avenue3 provi,e,3 the money /as ju,iciously investe, Though

the ris. associate, is generally on the higher si,e o- the spectrum3 the return5potential compensates -or

the ris. attache,

#apital mar.ets interest people3 al1eit not all -or there are several pro1lems associate, )irst issue is

that o- e0pertise


29/59

Ne0t pro1lem is that o- -un,sPmoney A single person can+t invest in multiple high price, stoc.s -or the

sole reason that his poc.ets are not li.ely to 1e ,eep enough This limits him -rom ,iversi-ying his

port-olio as /ell as 1ene-iting -rom multiple investments

>ere again3 investing through M) route ena1les an investor to invest in many goo, stoc.s an, reap 1ene-its even through a small investment This not only ,iversi-ies the port-olio an, helps in generating

returns -rom a num1er o- sectors 1ut re,uces the ris. as /ell Though i,enti-ication o- the right -un,

might not 1e an easy tas.3 availa1ility o- goo, investment consultants an, counselors /ill help

investors ta.e in-orme, ,ecision

TYPES OF MUTUAL FUNDS

Mutual -un, schemes may 1e classi-ie, on the 1asis o- its Sr"#"r! an, its

I*0!%(!* O8

B& Sr"#"r!=

Op!*>!*/!/ F"*/%

An open5en, -un, is one that is availa1le -or su1scription all through the Year These ,o not have a

-i0e, maturity Investors can conveniently 1uy an, sell units at Net Asset Value FNAVG relate, prices

The .ey -eature o- open en, schemes is li2ui,ity

Co%!/>!*/!/ F"*/%

A close,5en, -un, has a stipulate, maturity perio, /hich generally ranging -rom 7 to @C years The

-un, is open -or su1scription only ,uring a speci-ie, perio, Investors can invest in the scheme at the

time o- the initial pu1lic issue an, therea-ter they can 1uy or sell the units o- the scheme on the stoc.

e0changes /here they are liste, In or,er to provi,e an e0it route to the investors3 some close5en,e,

-un,s give an option o- selling 1ac. the units to the Mutual )un, through perio,ic repurchase at NAV

relate, prices SEBI Regulations stipulate that at least one o- the t/o e0it routes is provi,e, to the

investor

I*!r0a F"*/%

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Interval -un,s com1ine the -eatures o- open5en,e, an, close5en,e, schemes They are open -or sale or

re,emption ,uring pre5,etermine, intervals at NAV relate, prices

B& I*0!%(!* O8

Gro4 F"*/%

The aim o- gro/th -un,s is to provi,e capital appreciation over the me,ium to long5 term Such

schemes normally invest a majority o- their corpus in E2uities It has 1een proven that returns -rom

stoc.s3 have outper-orme, most other .in, o- investments hel, over the long term &ro/th schemes are

i,eal -or investors having a long5term outloo. see.ing gro/th over a perio, o- time

I*#o(! F"*/%

The aim o- income -un,s is to provi,e regular an, stea,y income to investors Such schemes generally

invest in -i0e, income securities such as 1on,s3 corporate ,e1entures an, &overnment securities

Income )un,s are i,eal -or capital sta1ility an, regular income

Baa*#!/ F"*/%

The aim o- 1alance, -un,s is to provi,e 1oth gro/th an, regular income Such schemes perio,ically

,istri1ute a part o- their earning an, invest 1oth in e2uities an, -i0e, income securities in the

proportion in,icate, in their o--er ,ocuments In a rising stoc. mar.et3 the NAV o- these schemes may

not normally .eep pace3 or -all e2ually /hen the mar.et -alls These are i,eal -or investors loo.ing -or

a com1ination o- income an, mo,erate gro/th

Mo*!& Mar:! F"*/%

The aim o- money mar.et -un,s is to provi,e easy li2ui,ity3 preservation o- capital an, mo,erate

income These schemes generally invest in sa-er short5term instruments such as treasury 1ills3

certi-icates o- ,eposit3 commercial paper an, inter51an. call money Returns on these schemes may

-luctuate ,epen,ing upon the interest rates prevailing in the mar.et These are i,eal -or #orporate an,

in,ivi,ual investors as a means to par. their surplus -un,s -or short perio,s

Loa/ F"*/%

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A (oa, )un, is one that charges a commission -or entry or e0it That is3 each time you 1uy or sell units

in the -un,3 a commission /ill 1e paya1le Typically entry an, e0it loa,s range -rom @; to :; It coul,

1e /orth paying the loa,3 i- the -un, has a goo, per-ormance history

No>Loa/ F"*/%A No5(oa, )un, is one that ,oes not charge a commission -or entry or e0it That is3 no commission is

paya1le on purchase or sale o- units in the -un, The a,vantage o- a no loa, -un, is that the entire

corpus is put to /or.

O!r S#!(!% =

Ta? Sa0$*- S#!(!%

These schemes o--er ta0 re1ates to the investors un,er speci-ic provisions o- the In,ian Income Ta0

la/s as the &overnment o--ers ta0 incentives -or investment in speci-ie, avenues Investments ma,e in

E2uity (in.e, Savings Schemes FE(SSG an, %ension Schemes are allo/e, as ,e,uction uPs o- the

Income Ta0 Act3 @@ The Act also provi,es opportunities to investors to save capital gains uPs C9EA

an, C9EB 1y investing in Mutual )un,s3 provi,e, the capital asset has 1een sol, prior to April @3 :888

an, the amount is investe, 1e-ore Septem1er 783 :888

Sp!#$a S#!(!%

I*/"%r& Sp!#$.$# S#!(!%

In,ustry Speci-ic Schemes invest only in the in,ustries speci-ie, in the o--er ,ocument The investment

o- these -un,s is limite, to speci-ic in,ustries li.e In-oTech3 )M#&3 an, %harmaceuticals etc

I*/!? S#!(!%

In,e0 )un,s attempt to replicate the per-ormance o- a particular in,e0 such as the BSE Sense0 or the

NSE C8

S!#or$a S#!(!%

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Sectorial )un,s are those3 /hich invest e0clusively in a speci-ie, in,ustry or a group o- in,ustries or

various segments such as A &roup shares or initial pu1lic o--erings

BENEFITS OF MUTUAL FUND INVESTMENT

Pro.!%%$o*a Ma*a-!(!*

Mutual )un,s provi,e the services o- e0perience, an, s.ille, pro-essionals3 1ac.e, 1y a ,e,icate,

investment research team that analyses the per-ormance an, prospects o- companies an, selects

suita1le investments to achieve the o1jectives o- the scheme

D$0!r%$.$#a$o*

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Mutual )un,s invest in a num1er o- companies across a 1roa, cross5section o- in,ustries an, sectors

This ,iversi-ication re,uces the ris. 1ecause sel,om ,o all stoc.s ,ecline at the same time an, in the

same proportion You achieve this ,iversi-ication through a Mutual )un, /ith -arless money than you

can ,o on your o/n

Co*0!*$!* A/($*$%ra$o*

Investing in a Mutual )un, re,uces paper/or. an, helps you avoi, many pro1lems such as 1a,

,eliveries3 ,elaye, payments an, -ollo/ up /ith 1ro.ers an, companies Mutual )un,s save your time

an, ma.e investing easy an, convenient

R!"r* Po!*$a

$ver a me,ium to long5term3 Mutual )un,s have the potential to provi,e a higher return as they invest

in a ,iversi-ie, 1as.et o- selecte, Securities

Lo4 Co%%

Mutual )un,s are a relatively less e0pensive /ay to invest compare, to ,irectly investing in the capital

mar.ets 1ecause the 1ene-its o- scale in 1ro.erage3 custo,ial an, other -ees translate into lo/er costs

-or investors

L$"$/$&

In open5en, schemes3 the investor gets the money 1ac. promptly at net asset value relate, prices -rom

the Mutual )un, In close en,e, schemes3 the units can 1e sol, on a stoc. e0change at the prevailing

mar.et price or the investor can avail o- the -acility o- ,irect repurchase at NAV relate, prices 1y the

Mutual )un,

Tra*%par!*#&

You get regular in-ormation on the value o- your investment in a,,ition to ,isclosure on the speci-ic

investments ma,e 1y your scheme3 the proportion investe, in each class o- assets an, the -un,

managers investment strategy an, outloo.

F!?$8$$&

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Through -eatures such as regular investment plans3 regular /ith,ra/al plans an, ,ivi,en, reinvestment

plans3 you can systematically invest or /ith,ra/ -un,s accor,ing to your nee,s an, convenience

A..or/a8$$&

Investors in,ivi,ually may lac. su--icient -un,s to invest in high5gra,e stoc.s A mutual -un, 1ecauseo- its large corpus allo/s even small investor to ta.e the 1ene-it o- its investment strategy

Co$#! o. S#!(!%

Mutual )un,s o--er a -amily o- schemes to suit your varying nee,s over a li-etime

9! R!-"a!/

All Mutual )un,s are registere, /ith SEBI an, they -unction /ithin the provisions o- strict regulations

,esigne, to protect the interests o- investors The operations o- Mutual )un,s are regularly monitore,

1y SEBI

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RIS;S ASSOCIATED 9ITH MUTUAL FUNDS

The most important relationship to un,erstan, is the ris.5return tra,e5o-- >igher the ris. greater the

returnsPloss an, lo/er the ris. lesser the returnsPloss >ence it is up to you3 the investor to ,eci,e ho/

much ris. you are /illing to ta.e In or,er to ,o this you must -irst 1e a/are o- the ,i--erent types o-

ris.s involve, /ith your investment ,ecision

MAR;ET RIS;

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Sometimes prices an, yiel,s o- all securities rise an, -all Broa, outsi,e in-luences a--ecting the mar.et

in general lea, to this This is true3 may it 1e 1ig corporations or smaller mi,5si4e, companies This is

.no/n as Mar.et Ris. A Systematic Investment %lan FQSI%G that /or.s on the concept o- Rupee #ost

Averaging FQR#AG might help mitigate this ris.

CREDIT RIS;

The ,e1t servicing a1ility Fmay it 1e interest payments or repayment o- principalG o- a company

through its cash -lo/s ,etermines the #re,it Ris. -ace, 1y you This cre,it ris. is measure, 1y

in,epen,ent rating agencies li.e #RISI( /ho rate companies an, their paper An !AAA+ rating is

consi,ere, the sa-est /hereas a !'+ rating is consi,ere, poor cre,it 2uality A /ell5,iversi-ie, port-olio

might help mitigate this ris.

INFLATION RIS;

Things you hear people tal. a1out QRs @88 to,ay is /orth more than Rs @88 tomorro/ QRemem1er

the time /hen a 1us ri,e cost C8 paisa= QMehangai "a 6amana >ai The root cause3 In-lation

In-lation is the loss o- purchasing po/er over time A lot o- times people ma.e conservative investment

,ecisions to protect their capital 1ut en, up /ith a sum o- money that can 1uy less than /hat the

principal coul, at the time o- the investment This happens /hen in-lation gro/s -aster than the return

on your investment A /ell5,iversi-ie, port-olio /ith some investment in e2uities might help mitigate

this ris.

INTEREST RATE RIS;

In a -ree mar.et economy interest rates are ,i--icult i- not impossi1le to pre,ict #hanges in interest

rates a--ect the prices o- 1on,s as /ell as e2uities I- interest rates rise the prices o- 1on,s -all an, vice

versa E2uity might 1e negatively a--ecte, as /ell in a rising interest rate environment A /ell5

,iversi-ie, port-olio might help mitigate this ris.

POLITICAL RIS;

#hanges in government policy an, political ,ecision can change the investment environment They can

create a -avora1le environment -or investment or vice versa

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LI@UIDITY RIS;

(i2ui,ity ris. arises /hen it 1ecomes ,i--icult to sell the securities that one has purchase, (i2ui,ity

Ris. can 1e partly mitigate, 1y ,iversi-ication3 staggering o- maturities as /ell as internal ris. controls

that lean to/ar,s purchase o- li2ui, securities You have 1een rea,ing a1out ,iversi-ication a1ove3 1ut

/hat is it= 'iversi-ication is the nuclear /eapon in your arsenal -or your -ight against Ris. It simplymeans that you must sprea, your investment across ,i--erent securities Fstoc.s3 1on,s3 money mar.et

instruments3 real estate3 -i0e, ,eposits etcG an, ,i--erent sectors Fauto3 te0tile3 in-ormation technology

etcG This .in, o- a ,iversi-ication may a,, to the sta1ility o- your returns

N! A%%! Va"! NAV)

The net asset value o- the -un, is the cumulative mar.et value o- the assets -un, net o- its lia1ilities In

other /or,s3 i- the -un, is ,issolve, or li2ui,ate, 1y selling o-- all the assets in the -un,3 this is the

amount that the sharehol,ers /oul, collectively o/n This gives rise to the concept o- net asset value

per unit3 /hich is the value represente, 1y the o/nership o- one unit in the -un, It is calculate, simply

1y ,ivi,ing the net asset value o- the -un, 1y the num1er o- units >o/ever3 most people re-er loosely

to the NAV per unit as NAV3 ignoring the Qper unit A##r"!/ !?p!*%!%

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LIFE INSURANCE

L$.! $*%"ra*#! For commonly $.! a%%"ra*#!3 especially in the #ommon/ealthG is a contract 1et/een

an insure, Finsurance policy hol,erG an, an insurer or assurer3 /here the insurer promises to pay a

,esignate, 1ene-iciary a sum o- money Fthe 1ene-itsG in e0change -or a premium3 upon the ,eath o-

the insure, person 'epen,ing on the contract3 other events such as terminal illness or critical

illness may also trigger payment The policy hol,er typically pays a premium3 either regularly or as a

lump sum $ther e0penses Fsuch as -uneral e0pensesG are also sometimes inclu,e, in the 1ene-its

(i-e policies are legal contracts an, the terms o- the contract ,escri1e the limitations o- the insure,

events Speci-ic e0clusions are o-ten /ritten into the contract to limit the lia1ility o- the insurer

common e0amples are claims relating to suici,e3 -rau,3 /ar3 riot3 an, civil commotion

(i-e51ase, contracts ten, to -all into t/o major categories

• %rotection policies J ,esigne, to provi,e a 1ene-it in the event o- speci-ie, event3 typically a

lump sum payment A common -orm o- this ,esign is term insurance

• Investment policies J /here the main o1jective is to -acilitate the gro/th o- capital 1y regular or

single premiums #ommon -orms Fin the USG are /hole li-e3 universal li-e3 an, varia1le policies

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IIFL LIFE INSURANCE TIE>UPS

An entry into this segment helpe, complete the clients pro,uct 1as.et concurrently3 it gra,uate, the

#ompany into a one stop retail -inancial solutions provi,er To ensure ma0imum reach to customers

across In,ia3 /e have employe, a multi pronge, approach an, reach out to customers via our Net/or.3'irect an, A--iliate channels )ollo/ing the opening o- the sector in @5:8883 a num1er o- private

sector insurance service provi,ers commence, operations aggressively an, helpe, gro/ the mar.et

The #ompany+s entry into the insurance sector ,eris.e, the #ompany -rom a pre,ominant ,epen,ence

on 1ro.ing an, e2uity5lin.e, revenues The annuity 1ase, income generate, -rom insurance

interme,iation result in soli, core revenues across the tenure o- the policy

O0!r ! a% .$0! &!ar% I*/$a I*.o$*! %arp!*!/ $% #o(p!$$0! !/-! $* $% 8"%$*!%% %!-(!*ro"- ! .oo4$*- $*$$a$0!%=

C$!* 8a%!=

&re/ its 983888 strong client 1ase through .no/le,ge5le, analysis3 translating into an attractive

opportunity to cross5sell pro,ucts an, generate re-erral 1usiness

D$%r$8"$o* *!4or:=

Investe, in a ,istri1ution net/or. o- @DD 1ranches across @ states3 /hich provi,e, it /ith anunmatche, reach /ithin its segment

Ha*/%>o* ra$*$*- =

Investe, aggressively in training its -iel, -orce more than @88 hours a year in pro,uct attri1utes across

the insurance sector 5 highlighting various pro,uct ,etails an, mar.eting s.ills apart -rom regular meets

/here 1est practices are share,

T!#*oo-&=

The #ompany provi,es a pru,ent mi0 o- proprietary an, outsource, technologies3 /hich -acilitate

1usiness gro/th /ithout a correspon,ing increase in costs

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R!%!ar# a*/ a/0$#!=

%rovi,e, clients /ith a,vice on ,iverse investment pro,ucts 1ase, on the customer+s e0isting an,

prospective -inancial pro-ile

;!& .!a"r!% =

In,ia In-oline /as the -irst corporate in In,ia to get the agency license in early :88@

The #ompany is the 1iggest corporate agency in In,ia -or li-e insurance pro,ucts

The #ompany operates multiple channels3 namely 1ranch net/or.3 pre-erre, client group3

,irect mar.eting3 corporate ta0 a,visory3 /al.5ins an, seminars3 to reach out to customers

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II)( (i-e Insurance tie5ups are as -ollo/s

ICICI PRUDENTIAL

F!a"r!% a*/ 8!*!.$% o. L$.!$(! P"%

I#I#I %ru,entials (i-etime %lus is a regular premium unit5lin.e, insurance policy that provi,es you

/ith -le0i1le investment options an, o- course3 the protective 1ene-it o- an insurance cover Ta.e a loo.

at the -eatures an, 1ene-its o- this plan

$*0!%(!* ."*/%= Select among )le0i5&ro/th3 RI#>3 Multiplier3 )le0i5Balance,3 Balancer3

%rotector3 an, %reserver3 1ase, on your -inancial goals an, ris. pro-ile

Par$a 4$/ra4a o. (o*!&=


42/59

RELIANCE

Investing -or the long term to -ul-ill your -amilys goals is important3 ensuring your -amily continues to

-ul-ill their ,reams a-ter you is even more important Reliance (i-e Insurance &uarantee, Money Bac.

%lan provi,es an in51uilt Acci,ental 'eath Bene-it as /ell as


43/59

OTHER FINANCIAL PRODUCTS OF IIFL

NON CONVERTIBLE DEBENTURES

The ,e1entures /hich cant 1e converte, into shares or e2uities are calle, non5converti1le ,e1entures

For N#'sG

D!.$*$$o*= 'e1entures are long5term -inancial instruments /hich ac.no/le,ge a ,e1t o1ligation

to/ar,s the issuer Some ,e1entures have a -eature o- converti1ility into shares a-ter a certain point o-

time at the ,iscretion o- the o/ner The ,e1entures /hich cant 1e converte, into shares or e2uities are

calle, non5converti1le ,e1entures For N#'sG

D!%#r$p$o*= Non5converti1le ,e1entures are use, as tools to raise long5term -un,s 1y companies

through a pu1lic issue To compensate -or this ,ra/1ac. o- non5converti1ility3 len,ers are usually given

a higher rate o- return compare, to converti1le ,e1entures

Besi,es3 N#'s o--er various other 1ene-its to the o/ner such as high li2ui,ity through stoc. mar.et

listing3 ta0 e0emptions at source an, sa-ety since they can 1e issue, 1y companies /hich have a goo,

cre,it rating as speci-ie, in the norms lai, ,o/n 1y RBI -or the issue o- N#'s In In,ia3 usually these

have to 1e issue, o- a minimum maturity o- 8,ays

HOME LOAN IIFL

II)( $--ers Better pro,ucts to the 1orro/ers /ith 1est services3 Value A,,e, -eatures * 1ene-its II)(

o--ers loans on the 1asis o- customer nee,s * value a,,e, appropriately

(oan )eatures

• >ome loan amount suite, to your nee,s

• Repayment options or tenure up to :8 years

• Simpli-ie, ,ocumentation re2uire,

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• Up to 8; ratio on value to loan

• Special insurance schemes on home loans at lo/est * attractive premiums

• No matter /hat the re2uirement &et the 1est ,eals3 an, -inance your per-ect home3 only -rom

II>)(

E$-$8! Borro4!r%=

Salarie, class #orporate salarie, employees3 &overnment employees * salarie, consultants

Sel-5employe, %roprietorship3 %artnership3 #ompanies * %ro-essionals

E$-$8$$& I*#o(!#r$!r$a

Saar$!/ &ross salary o- Rs : (acs paS!. E(po&!/ Min %ro-it a-ter ta0 o- Rs : (acs paMa*/aor& R"! The minimum income shall 1e compute, 1y ta.ing the income o- applicant

an, one co5applicant


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MAR;ET SCOPING AND ANALYSIS OF DATA

Mar:! po%$$o*$*- o. IIFL

Mar.et %ositioning o- II)( is !AT IN'IA IN)$(INE


46/59

The SA(ES in the -inancial service in,ustry is highly ,epen,ent on ho/ you manage your relationship

/ith your customers

A SA(E is three steps process

A#"$%$$o*=

The process o- prospecting an, ac2uiring ne/ customers using a structure, sales process

R!!*$o*=

The process o- provi,ing e0cellent services an, support to e0isting customers an, thus re,ucing

customer attrition

E?!*%$o*

The process o- sustaining e0isting customers /ith marvelous services provi,e, to them

II)( puts in such e--orts to increase its sales an, as /ell /hile prospecting its customers they ta.e

special e--orts such as

• %rospecting is all a1out -in,ing potential ne/ customers

• %rospecting is continuous activity o- o1serving3 i,enti-ying an, 2uali-ying

• %rospective customers /ho may 1e approache, to sell pro,uct or services

• %ersonal contacts an, o1servation

• #ol, calling

• %amphlets ,istri1ution

Page46

Extension Acquisition Retention


47/59

DATA ANALYSIS

In,ia In-oline is one o- the largest groups3 /hich ,eals into 1ro.erage3 institutional 1ro.erage3

consumer len,ing3 institutional len,ing3 an, realty an, /ealth management

As there is huge competition in mar.et -or -inancial sector3 as consumer have many alternative optionsII)( is a 1ran,3 in /hich there are many pro,ucts such as gol, loan3 N#'+s3 insurance3 e2uities3 -i0e,

,eposits3 etc Mannipuram3 Muthoot3 1an.s3 are the competitors o- II)( In,ia In-oline nee, to i,enti-y

nee,s o- their consumers /hat .in, o- pro,uct an, services they are e0pecting to get -rom II)( 1ranch

The vie/ o- consumers a1out In,ia In-oline pro,uct * services are mentione, 1elo/5

0 1 2 3 4 5 60

5

10

15

20

25

30

35

40

45

50

Emergency requirement of money in a year (times)

Figure 1

I*!rpr!a$o*=

T/o times in a year consumers have emergency re2uirement o- money the most These consumers

shoul, 1e -ocuse, more an, their re2uirement must 1e -ul-ille, 1y II)(

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CC;

@C;

:C;

C;

)amily an, )rien,s &ol, (oan )rom $--ice Savings

Figure 2

I*!rpr!a$o*=

As everyone re2uires money3 consumer manages money mostly -rom -amily * -rien,s3 /hich they -in,

most trust/orthy In a1ove ,iagram /e can -in, only @C; o- consumers see. their money re2uirement

through gol, loan These @C; consumers shoul, 1e ,elighte, /ith II)( pro,uct * services #ustomer

1on,ing shoul, 1e increase, * the @C; share shoul, 1e e0pan,e, -urther

Page48


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65%

35%

Yes No

Figure 3

H&po!%$% !%$*-

>8 %eople are not a/are a1out the gol, loan

>@ %eople are a/are a1out the gol, loan

)rom the analysis ,one a1ove3 it coul, 1e easily seeme, that majority o- the respon,ents are a/are

a1out gol, loan

C; o- respon,ents /ere a/are a1out the gol, loan

Co*#"%$o*=

>ence the researcher rejects the null hypothesis

Thus it prove, that people are a/are a1out the gol, loan

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40%

7%5%5%

30%

13%

Banks Saving A/C

Insurance

Rea !s"a"e

#u"ua $uns

$i&e 'e(osi"

)os" *+ce

*,ers

Figure 4

H&po!%$% !%$*-

>8 ? %eople ,o trust mutual -un,s

>@ ? %eople ,o not trust mutual -un,s

)rom the analysis ,one a1ove3 it coul, 1e easily conclu,e that majority o- respon,ent trust -i0e,

,eposits an, 1an. savings

)rom a1ove 2uestion /e came to .no/ only C; people ,o trust mutual -un,s3 comparatively )i0

,eposits * Ban. Saving account is truste, more

Co*#"%$o*=

>ence researcher rejects the Null >ypothesis

Thus it is prove, that people ,o not trust mutual -un,s

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S9OT ANALYSIS OF IIFL

STRENGTHS

Integrate, technology plat-orm

$ne stop shop

%an5In,ia ,istri1ution net/or. In,iaIn-olinecom an, Cpaisacom have ,evelope, onto 1ran,s

ave over :C88 o--ice in In,ia in over C88 cities

)irst In,ian 1ro.erage house to mem1ership o- Singapore E0change

II)( has 1een a/ar,e, the !1est 1ro.er3 In,ia+ most improve, 1ro.erage3

In,ia+s )astest &ro/ing E2uity >ouse

9EA;NESSES

(ac. o- a 1an. arm to complete the 1an.51ro.er5,epository chain

Insigni-icant presence in institutional Segment

>igh ris. e0posure as seen 1y conservative population

(ess emphasis on a,vertising causes lac. o- 1ran, visi1ility

OPPORTUNITIES

#hanging ,emographics /ith higher ,isposa1le income an, increasingly comple0 -inancial

instruments /ill ,rive ,eman, -or investment a,visory services Rapi, penetration o- internet an, computers means that technology ena1le, -inancial services

/ill gain mar.et share>igh income ur1an -amilies

More penetration into gro/ing cities

THREATS

Economic slo/,o/nPvolatile movement in in,ices events li.e :889*:88

Stoc. mar.et -alls have a casca,ing e--ect on our mutual -un,s mo1ili4ation

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IncreaseP'ecrease in interest rate can impact insurance sales

Stringent Economic measures 1y government an, RBI

Entry o- -oreign -inance -irm in In,ian mar.et

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LEARNING FROM THE SUMMER INTENRSHIP PROJECT

>a, a practical e0perience o- /or.ing in repute, organi4ation

&ot the practical .no/le,ge o- the mar.et

(earne, the importance o- the e0cel sheet

(earne, to manage time properly (earne, the various policies o- the company

(earne, mar.eting activity3 /here I use to ,istri1ute pamphlets regar,ing gol, loan3 home loan3 etc

(earne, ho/ to approach the customers (earne, ho/ to ta.e appointments Enhance, my communication an, convincing s.ills

(earne, a1out various pro,ucts o- the In,ia In-oline (t,

(earne, a1out &ol, loan /hat is the process o- gol, loan=

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RECOMMENDATIONS

• #ommitment shoul, 1e e2uali4e, -or every person

• %rovi,e the -acility o- -ree ,emonstration -or all

• Improvement in the opening o- ne/ scheme on gol, loan

•

There shoul, 1e a limite, num1er o- clients un,er the customer care e0ecutive so that he can

han,le ne/ as /ell as employee o- the II)(

• Some promotional activities are re2uire, -or the a/areness o- the customer an, as /ell as

employee o- the II)(

• %eople at young age shoul, 1e encourage, to invest in gol, loan

• Seminars shoul, 1e hel, -or provi,ing in-ormation to prospective an, present customers

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CONCLUSION

$n the 1asis o- the stu,y it is -oun, that In,ia In-oline (t, is 1etter service provi,er than the other gol,

loan company 1ecause the loan in @8 minutes an, there is no charges on loan amount

In-oline (t, provi,es the -acility to the customer as /ell as relationship manager -acility -or

encouragement an, protects the interest o- the investors )or 1orro/ers3 gol, loans have emerge, as

one o- the 1est means o- raising 2uic.3 short term capital )or len,ers3 gol, loans are more

a,vantageous compare, /ith home an, car loan 1ecause o- the shorter tenures3 lo/er processing time

an, cost3 an, greater returns ,ue to higher interest rates

These -actors along /ith appreciation in value o- gol,3 have le, to an e0plosion in the gol, loan

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&ol, saving schemes are also emerging /herein the customers pay regular cash -lo/s /hich on

maturity are a,,e, /ith a certain amount o- interest payment to purchase gol, -or customers


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R!.!r!*#!%

• httpPP///in,iain-olinecom

• httpPP///nsein,iacom

• httpPP///1sein,iacom

• httpPP///angel1ro.ingcom

• httpPP///se1igovinP,pPin,iain-op,-

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APPENDIX

@"!%$o**a$r! 4$# 4a% "%!/ /"r$*- %"r0!& $% -$0!* 8!o4=

H@G >o/ many times in year you have emergency re2uirement o- money=8 @ : 7 9 C

H:G >o/ ,o you manage /hen you re2uire money=

H7G Are you a/are a1out the concept o- gol, loan=

Yes No

H9G >ave you ever use, gol, loan services=

Yes No

HCG I- yes /hich company Amount o- loan

HG


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Share mar.et

Insurance

Mutual )un,s

%ost $--ice

)i0e, ,epositBon,s

HG

Documents

IIFL Final Internship Report