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PROJECT TITLE
“In-depth Comparative Analysis of Futurist (Loyalty Program) of
DSP BlackRock Mutual Funds with other Asset Management
companies”
The contents of the proposal report are a part of the internship project
undertaken by Mr. Debarpan Nag at DSP BlackRock Mutual Funds Pvt.
Ltd., as a part of the PGDM (Marketing) course in the Institute of
Management Technology, Hyderabad. This report is meant only for
academic purposes. The data pertaining to the Marketing not be used for
any commercial purposes.
Signed By:
Debarpan Nag
PGDM – Finance
Institute of Management Technology, Hyderabad
Approved By:
i
CONTENTS
Undertaking………………………………………………………i
1. Birla Sun Life Mutual Fund……………………………1
2. ICICI Prudential Mutual Fund..........................5
3. UTI Mutual Funds............................................8
4. DSP BlackRock Mutual Fund…………………………12
5. Comparative Analysis in Tabular Form............16
References…………………………………........................19
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment manager of Birla
Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life
Financial Inc. of Canada. The joint venture brings together the Aditya Birla Group's
experience in the Indian market and Sun Life's global experience.
Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading
flagships of Mutual Funds business managing assets of a large investor base. Our solutions
offer a range of investment options, including diversified and sector specific equity
schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt
and treasury products and offshore funds.
Birla Sun Life Asset Management Company has one of the largest team of research analysts
in the industry, dedicated to tracking down the best companies to invest in. BSLAMC strives
to provide transparent, ethical and research-based investments and wealth management
services.
1
There are around 47 funds managed by Birla Sun Life Mutual Fund and these are few funds
as picked up from MoneyControl.com
ABFS Privilege Club - A loyalty program that lifts your ambitions higher
The objective of the ABFS Privilege Club is to track the progress of retail IFAs, at each and
every stage of growth and accordingly support on various parameters ranging from both
personal security as well as long term professional security
2
GROSS SALES MARKET SHARE MULTIPLIER (GSMS)
• GSMS gets extra weightage in the form of multiplier to the base point.
• If GSMS % is greater than or equal to 10% then multiplier points are added to the
base points
• No multiplier points are added the base points if in case GSMS is less than 10%
CLUB POINTS CALCULATION
• Only Equity Gross Sales will be considered for GS multiplier
• Quarterly GSMS will add points multiplier to the base
• Multiplier will be based on the GSMS %.
• (for Example: if quarterly GSMS % for Apr-Jun’ 17 quarter is 25% and club points for
the quarter is 1000; the total points for deciding Club Status will be 1000*125%=1250)
CLUB CLASSIFICATION
In the ABFS Privilege Club, all the IFAs would be classified on the basis of their club points
accumulated in a financial quarter.
15000 Diamond
7500
Platinum
6000
Gold +
4000
Gold
1500
Silver
400
Bronze
Blue
The beginning point for all
freshly empaneled IFAs
CLUB POINTS REVIEW
Every quarter all the IFAs in all the Club categories can be upgraded to a higher club
category subject to the fulfilment of the upgradation criteria.
3
SNAPSHOT OF THE PRIVILAGES
2 Golden Age Plan (G.A.P) - AMC yes yes yes yes yes -
contribution of 5% of monthly Net
3 Life Insurance cover in (lacs) 80 60 40 20 10 5
4 Medical Insurance Cover in (lacs) 5 4 3 2.5 2 1
5 Child Scholarship amount in Rupees 30,000 25,000 20,000 15,000 10,000 -
6 Financial Magazine Subscription yes yes yes - - -
7 Community Engagement Initiatives yes yes yes yes yes yes
8 Stationery DIAMOND PLATINUM GOLD+ GOLD SILVER BRONZE
4
ICICI Prudential Asset Management Company Ltd. is a leading management company (AMC)
in the country focused on bridging the gap between savings & investments and creating
long term wealth for investors through a range of simple and relevant investment solutions.
The AMC is a joint venture between ICICI Bank, a well-known and trusted name in financial
services in India and Prudential Plc, one of UK’s largest players in the financial services
sectors. Throughout these years of the joint venture, the company has forged a position of
pre-eminence in the Indian Mutual Fund industry.
The AMC manages significant Assets under Management (AUM) in the mutual fund
segment. The AMC also caters to Portfolio Management Services for investors, spread
across the country, along with International Advisory Mandates for clients across
international markets in asset classes like Debt, Equity and Real Estate.
The AMC has witnessed substantial growth in scale; from 2 locations and 6 employees at
the inception of the joint venture in 1998, to a current strength of more than 1100
employees with a reach across over 200 locations reaching out to an investor base of more
than 3 million investors. The company’s growth momentum has been exponential and it has
always focused on increasing accessibility for its investors
5
ELIGIBILITY
• Club Qualifiers have 15% or Higher Equity AUM Market Share as on 31st March
2017.
• NISM certified Individual Financial Advisor who is registered with AMFI
• Net Sales to Gross Sales Ratio > = 25% in Cat 1 & Cat 2 Schemes
• Equity AUM Market Share > = 10% at the end of the Program Period
INCREMENTAL
SCHEME CATEGORY AMOUNT (Rs.) GROSS SALES NET SALES
DAILY AVG. AUM
CAT 1 20,000 1 2 -
CAT 2 50,000 1 2 -
CAT 3 50,000 - - 1
PROGRAM MULTIPLIERS
• On Equity Gross Sales Market Share
• On AUM Market Share
• On Digital Transactions
• Earn more points on PMS Business
• “SIP Champion Club”- Multiplier Points On SIP
• New Clients (PAN) to AMC
6
SCHEME CATEGORY
2 bond, fund & child care study plan, capital protection oriented
fund NFOs and Multiple Yield Fund NFOs.
Long term plan, short term plan, dynamic bond fund, savings
CATEGORY fund, equity-arbitrage fund, long term gilt fund, gilt investment
PF option, Short term Gilt fund, ultra-short term plan, income
3 opportunities, constant maturity gilt fund and banking & PSU
Debt fund.
7
January 14, 2003 is when UTI Mutual Fund started to pave its path following the vision of
UTI Asset Management Co. Ltd. (UTIAMC), which was appointed by UTI Trustee Co. Ltd. for
managing the schemes of UTI Mutual Fund and the schemes transferred/migrated from the
erstwhile Unit Trust of India.
UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs
of every class of citizens. It has a nationwide network consisting 150 UTI Financial Centres
(UFCs) and UTI International offices in London, Dubai and Singapore.
UTIAMC has a well-qualified, professional fund management team, which has been fully
empowered to manage funds with greater efficiency and accountability in the sole interest
of the unit holders. The fund managers are ably supported by a strong in-house securities
research department. To ensure investors' interests, a risk management department is also
in operation.
8
UNIVERSAL COVERAGE
NOTHING GOES
UNREWARDED The program lets you earn
PERFORMANCE PAYS
benefits for all the products you
Every single point you earn sell: equity, balanced, debt or It awards equal points to
liquid category funds
qualifies for rewards subject all IFAs based on their
to you achieving a minimum current financial year
of 250 points and thereafter performance
in multiples of 250 points.
Additional points
UTI Summit: Being a points base
entitle you to let entitlement, there is
your family A Unique no restriction on the
number of IFAs
member – spouse Partnership qualifying for
and children –
accompany you to various clubs
the Chairman’s
Club Convention
9
CLUB CALSSIFICATION
INTERESTING POINTS
• There are 12 parameters on which IFAs earn points.
• Sales across all products
• New accounts
• New SIPs and STP.
• Exclusive account to redeem the earned points
• Points earned are calculated on the daily basis and updated in the account at
regular intervals.
• Facility to track points. IFAs (General
For every 10- Cadre) for
For every 10- new STP achieving 10 lakh
new investor Accounts AUM
10 10 100
POINTS POINTS POINTS
For every 10
For every
new SIP
Bonus for B- 10-new
Accounts
15 location investor
10
25 % POINTS
20 %
10
EXCLUSIVE CLUB BENEFITS
Weighted *AUM
< Rs. 1 Cr
11
DSP BlackRock is a joint venture between the 150-year-old Indian financial firm, DSP Group
and the world’s largest investment management firm, BlackRock. We are one of the premier
asset management companies in India, with over 19 years of track record of investment
excellence.
The DSP Group, headed by Mr. Hemendra Kothari, is one of the oldest and most respected
financial services firms in India. The firm commenced its stock broking business in the 1860s
and the family behind the group has been very influential in the growth and
professionalization of capital markets and money management business in India.
BlackRock is the world’s largest investment management firm and is trusted to manage
more money than any other investment firm in the world. Millions of retail investors from
around the world, governments, large foundations and companies including 94 of the
Fortune 100 and 20 of the top 25 insurers globally trust BlackRock with their money.
12
PROGRAM STRUCTURE
CLASSIFICATION OF TIERS
AVG. AUM
AVG. AUM AMOUNT AVG. AUM AMOUNT
TIER AMOUNT LEVEL 3 POINTS
LEVEL 1 ASSETS LEVEL 2 ASSETS
ASSETS
CORONIUM 1,00,000 2,00,000 5,00,000 2
PLATINUM 1,00,000 2,00,000 5,00,000 1.8
GOLD 1,00,000 2,00,000 5,00,000 1.5
SILVER 1,00,000 2,00,000 5,00,000 1.3
13
1. c
AUM POINTS
AUM points are points which will be given at the end of each year based on
the average AUM of the member.
AVG. AUM
AVG. AUM AMOUNT AVG. AUM AMOUNT
TIER AMOUNT LEVEL 3 POINTS
LEVEL 1 ASSETS LEVEL 2 ASSETS
ASSETS
BONUS POINTS
These points can be earned on promotional offers that will be announced
from time to time
14
A. IFAXpress Bonus
SALES POINTS
Net sales on IFAXpress (level 1 and level 2) 10% of net sales points
Net sales on IFAXpress (level 3) 2 points per 5 lakh
TIER BENEFITS
15
COMPARATIVE ANALYSIS IN TABULAR FORM
DSP BIRLA
UTI ICICI
BLACKROC SUN LIFE
No. SCHEMES FOR TOP PERFORMING IFAs MUTUAL MUTUAL
K MUTUAL MUTUAL
FUND FUND
FUND FUND
1 ANNUAL AWARD FUNCTION
a) INTERNATIONAL ✓ ✓ ✓ ✓
b) NATIONAL × × × ×
2 TRAINING PROGRAMS ✓ ✓ ✓ ✓
MANAGEMENT DEVELOPMENT
3
PROGRAM ✓ ✓ ✓ ✓
4 HEALTH CHECK UP ✓ ✓ ✓ ✓
5 PERSONAL ACCIDENT INSURANCE ✓ ✓ ✓ ✓
6 GIFT HAMPER ✓ ✓ ✓ ✓
7 EXCLUSIVE GIFT ✓ × × ×
8 VALUE ADDED TOOLS ✓ ✓ × ×
9 CHILD SCHOLARSHIP ✓ ✓ ✓ ✓
10 FAMILY INSURANCE ✓ ✓ ✓ ✓
11 GOLDEN AGE PLAN × × ✓ ×
12 PERSONAL MEDICLAIM ✓ ✓ ✓ ✓
13 FAMILY MEDICLAIM ✓ ✓ ✓ ✓
• There is not much of difference in the top layers of IFA loyalty benefits by all
these top 4 AMC.
• DSP BlackRock pioneering in Exclusive Gifts.
• DSP BlackRock and UTI MF providing value added tools to the IFAs.
• BIRLA SUN LIFE MF pioneering in GOLDEN AGE PLAN which takes care of the IFA’s
retirement so that the standard of living of the IFAs aren’t disrupted.
16
COMPARATIVE ANALYSIS IN TABULAR FORM
DSP BIRLA
UTI ICICI
SCHEMES FOR MID LEVEL BLACKROC SUN LIFE
No. MUTUAL MUTUAL
PERFORMING IFAs K MUTUAL MUTUAL
FUND FUND
FUND FUND
1 ANNUAL AWARD FUNCTION
a) INTERNATIONAL × × × ×
b) NATIONAL ✓ ✓ ✓ ✓
2 TRAINING PROGRAMS ✓ ✓ ✓ ✓
MANAGEMENT DEVELOPMENT
3
PROGRAM ✓ ✓ ✓ ✓
4 HEALTH CHECK UP ✓ ✓ ✓ ✓
5 PERSONAL ACCIDENT INSURANCE ✓ ✓ ✓ ✓
6 GIFT HAMPER × × × ×
7 EXCLUSIVE GIFT × × × ×
8 VALUE ADDED TOOLS ✓ ✓ × ×
9 CHILD SCHOLARSHIP ✓ ✓ ✓ ✓
10 FAMILY INSURANCE ✓ × ✓ ×
11 GOLDEN AGE PLAN × × ✓ ×
12 PERSONAL MEDICLAIM ✓ ✓ ✓ ✓
13 FAMILY MEDICLAIM ✓ × ✓ ×
17
COMPARATIVE ANALYSIS IN TABULAR FORM
DSP BIRLA
UTI ICICI
BLACKROC SUN LIFE
No. SCHEMES FOR BEGINNER LEVEL IFAs MUTUAL MUTUAL
K MUTUAL MUTUAL
FUND FUND
FUND FUND
1 ANNUAL AWARD FUNCTION
a) INTERNATIONAL × × × ×
b) NATIONAL × × × ×
2 TRAINING PROGRAMS ✓ ✓ ✓ ✓
MANAGEMENT DEVELOPMENT
3
PROGRAM ✓ ✓ ✓ ✓
4 HEALTH CHECK UP × ✓ × ×
5 PERSONAL ACCIDENT INSURANCE × × × ×
6 GIFT HAMPER × × × ×
7 EXCLUSIVE GIFT × × × ×
8 VALUE ADDED TOOLS ✓ ✓ × ×
9 CHILD SCHOLARSHIP × × × ×
10 FAMILY INSURANCE × × × ×
11 GOLDEN AGE PLAN × × ✓ ×
12 PERSONAL MEDICLAIM ✓ ✓ ✓ ✓
13 FAMILY MEDICLAIM × × × ×
• Here we get to observe that very basic benefits are provided encouraging the IFAs
to perform and get upgraded to higher strata of clubs.
• Yet the AMCs are trying to build a sense of inclusivity in providing benefits in the
mind of IFA Beginners.
18
REFRENCES
19