Mahindra Finance – Why To Invest In Company FD?

Presented By Shreyas D Laste

Roll No 28

Objective

• To study where the people are interested in investing their money.

• My main aim in this project was to compare MMFS fixed deposit scheme over the other fixed deposit schemes offered by other financial institutions

• To find out how MMFS fixed deposit are better than bank deposits.

Company Profile

About MMFS

One of The Leading NBFC Main Goal & Strategy Seeking Position

Company Profile

Line of Business

Fixed Deposit

Meaning Interest Income Effective Return Pros & Cons Reasons To Invest In FD’s

Advantages & Disadvantages of FD’s

Advantages Safe Investment Receiving Regular Income Longer The Investment Better The Investment

Disadvantages Not Safe As Bank FD’s Wont Give Returns As Compared To Stock Mkt No Protection Against Inflation

Research Methodology

Primary Research Secondary Research

Method Used - Questionnaire

Analysis

MMFS Fixed Deposit

Non Cumulative Half Yearly Scheme

Minimum Amount

Period (Months) Interest p.a.

12 8.75%

Rs 25000 24 9.25%

36 9.75%

Analysis

Cumulative Scheme

Minimum Amount

Period (Months)

Amount Payable Interest p.a.

Effective Yield p.a.

12 Rs 10900 9.00% 9.00%Rs 1000 18 Rs 11430 9.25% 9.53%

24 Rs 11990 9.50% 9.95%36 Rs 13310 10.00% 11.03%

Comparison of MMFS With Private Banks

Amount: 10,000 INR

Tenure: 1  Years

MMFS AXIS HDFC Bank ICICI

Key Features

Interest type Compound Interest Compound Interest Compound Interest Compound Interest

Product name Fixed Deposit Fixed Deposit Fixed Deposit Fixed Deposit

Compounding frequency Yearly Yearly Yearly Yearly

Interest rate 9% 7.30% 6.00% 6.25%Annual yield 9% 7.50% 7.45% 7.45%

Maturity amount Rs. 10900 Rs. 10,750 Rs. 10,745 Rs. 10,745 Mode of interest paid ECS, By Cheque ECS, By Cheque ECS, By Cheque ECS, By Cheque

Deposit Features

Type Recurring ,

Reinvestment Recurring ,

Reinvestment Reinvestment

Recurring , Reinvestment

Provider type Corporate Private Bank Private Bank Private Bank Minimum Balance Rs. 10,000 Rs. 10,000 Rs. 10,000 Rs. 10,000

Penalty for early closure 0.00% 0.00% 0.00% 1.00%Eligibility

Eligibility Resident Indian,

HUF, NRI Resident Indian, HUF,

NRI Resident Indian, HUF, NRI

Resident Indian, HUF, NRI

Cumulative Deposit Plan of NBFC’s

MMFS TATA Motors Jindal Steel & Power Godrej Industries Ltd

Period 3 year 3 year 3 year 3 year

Min Amt (Rs.)

10000 20000 10000 10000

Rate Of Interest

10.00% 11.00% 11.00% 8.50%

Maturity Value (Rs.)

13310 27696 13849 12596

Yield(p.a.)

11.03% 12.83% 12.83% 11.83%

Addl to Senior Citizen

0.25% 0.50% 0.25% 0.25%

Graphical ReportInterest Rate

MMFS AXIS HDFC Bank ICICI

Interest rate 9% 7.30% 6.00% 6.25%

Graphical Report Annual Yield

MMFS AXIS HDFC Bank ICICIAnnual yield 9% 7.50% 7.45% 7.45%

Graphical Report

Maturity Amount

MMFS AXISHDFC Bank

ICICI

Maturity amount (Rs)

10900 10,750 10,745 10,745

Findings & Observation

The benefit of fixed deposit offered by MMFS is more beneficial than the other private banks under study.

MMFS offers various schemes which gives the investor large options to chose from.

MMFS focuses not only on the urban areas but also on the rural areas which makes them well known all over the country.

The scheme offered by MMFS is not only easy and convenient but also very beneficial.

Conclusion Most of the business group people invest majority of their

earnings into securities and shares rather than fixed return investments plans.

The service class people mostly believe in depositing in fixed deposit schemes rather than investing in other risky investments.

My aim of comparing MMFS fixed deposit scheme over the other fixed deposit schemes offered by other financial institutions is completed to an extent.

Limitations Some of the websites did not provide updated interest rates which led to many complications and confusions.

Due to the time constraint it was not possible to show other fixed deposit comparisons.

Adequate proofs were not provided by the clients required for opening FD account with MMFS.

Suggestions & Recommendations

MMFS should undertake different promotional strategies in order to create awareness among the public at large.

Television and door to door advertising should be adopted apart from telephonic marketing.

THANK YOU