1.

INTRODUCTION

1.1 Aditya Birla Sun Life Asset Management Company Ltd.

Aditya Birla Sun Life Asset Management Company Ltd. (ABSLAMC) formerly known as
Birla Sun Life Asset Management Company Limited, is an investment managing company
registered under the Securities and Exchange Board of India. It was established in 1994 a joint
venture between the Aditya Birla Group of India and the Sun Life Financial Inc. of Canada.
The company offers sector specific equity schemes, fund of fund schemes, hybrid and monthly
income funds, debt and treasury products and offshore funds.

 The Aditya Birla Group

The Aditya Birla Group is an Indian multinational conglomerate named after Aditya Vikram
Birla, headquartered in the Aditya Birla Centre in Worli, Mumbai, India. It operates in 40
countries with more than 120,000 employees worldwide. The group was founded by Seth Shiv
Narayan Birla in 1857. The group interests in sectors such as viscose staple fibre, metals, cement
(largest in India), viscose filament yarn, branded apparel, carbon black, chemicals, fertilisers,
insulators, financial services, telecom (third largest in India), BPO and IT services. The group
had a revenue of approximately US$41 billion in year 2015. It is the third-largest Indian private
sector conglomerate behind Tata Group with revenue of just over US$100 billion and RIL with
revenue of US$74 billion.

1
  Sun Life Financial

Sun Life Financial, Inc. is a Canada-based financial services company known primarily as a [life
insurance] company. It is one of the largest life insurance companies in the world, and also one
of the oldest, having been founded in 1865. Sun Life Financial provides investment
management with over CAD$734 billion in assets under management operating in a number of
countries. Sun Life ranks number 236 on the Forbes Global 2000 list for 2010 as well as on the
Fortune 500 list.It provides asset management through MFS Investment Management and Sun
Life Global Investments (Canada) Inc. that it launched in 2010, and also started a third-party
asset-management arm in 2014, under the brand name Sun Life Investment Management,
seeking to add fee revenue and distance itself from more capital-intensive operations such as
annuities

The company operates in India as Aditya Birla Sun Life Asset Management. Established in 1994,
Birla Sun Life Asset Management Company Ltd. (BSLAMC), investment manager for Birla Sun
Life mutual fund, has been a joint venture between the Aditya Birla Group and Sun Life
Financial Inc. since 1999. Birla Sun Life Mutual Fund was the third largest Fund house in India
based on domestic average assets under management as published by AMFI for the quarter
ended March 31, 2018.

SWOT Analysis of Aditya Birla Sun Life Asset Management

Company

Strengths
1. Has Network of 600 branches and advisors spread over 1500 towns in India having over
130,000 advisors.
2. Backed By Aditya Birla Brand and Sun Life financial services.
3. Emphasis on Customer Satisfaction through Transparent Functioning.
4. Strong Capital Base.

2
 Weaknesses
1. Low Presence in Rural Market
2. Lesser advertising as compared to competitors

Opportunities
1. Growing potential in the Rural Market.
2. Alignment with Government Schemes.
3. Better awareness amongst people for getting insurance

Threats
1. Economic crisis and economic instability
2. Entry of new NBFCs in the sector

Products offered:

Scheme Subscription Redemption

Scheme Name NAV Date NAV (Rs.)
Code Price Price

295D Birla Sun Life Small cap fund 24/03/2018 28.33 28.33 28.33

Birla Sun Life International Equity Fund

298D 24/03/2018 9.28650 9.2865 9.1936
- Plan B – Dividend

Birla Sun life Pure Value Fund –

296D 24/03/2019 15.50490 15.5049 15.3499
Dividend

Bsl Commodity Equities Fund-global

202RD 24/03/2019 12.89140 12.8914 12.5047
Precious Metals Plan-retail-dividend

Bsl Commodity Equities Fund-global

202RG 24/03/2019 12.89140 12.8914 12.5047
Precious Metals Plan-retail-growth

Birla Sun Life Small And Midcap Fund

295G 24/03/2019 11.57920 11.5792 11.4634
– Growth

231G Birla Sun Lifetax Plan – Growth 24/03/2019 13.40000 13.4 13.4

3
 Birla Sun Life India Reforms Fund-
935G 24/03/2019 9.74000 9.74 9.64
growth

02 Bsl Tax Relief 96 – Dividend 24/03/2019 75.32000 75.32 75.32

Bsl Commodity Equities Fund-global

203RD 24/03/2019 15.71320 15.7132 15.2418
Agri Plan-retail-dividend

Bsl Commodity Equities Fund-global

203RG 24/03/2019 15.71320 15.7132 15.2418
Agri Plan-retail-growth

Birla Sun Life International Equity

297G 24/03/2019 9.63850 9.6385 9.6385
Fund-plan A –growth

Birla Sun Life Advantage Fund –

201D 24/03/2019 76.64000 76.64 76.26
Dividend

Birla Sun Life Advantage Fund –

201G 24/03/2019 149.79000 149.79 149.04
Growth

Birla Sun Life Dividend Yield Plus –

261D 24/03/2019 13.08000 13.08 12.95
Dividend

Birla Sun Life Dividend Yield Plus –

261G 24/03/2019 83.96000 83.96 83.12
Growth

Birla Sun Life Midcap Fund -plan A-

251D 24/03/2019 21.19000 21.19 20.98
Dividend

Birla Sun Life Midcap Fund -plan A –

251G 24/03/2019 104.50000 104.5 103.46
Growth

4
AREA OF OPERATION:
ABSLAMC is working in mutual funds means their main area of operation is mutual fund.
A mutual fund is professionally managed type of collective investment scheme that pools money
from many investors typically in investment securities.

MAJOR COMPETITORS:
1. Reliance mutual fund
2. ICICI mutual fund
3. SBI mutual fund
4. HDFC mutual fund

AUM as
on AUM as on Absolute Change in Market
Mutual Funds
March March 2017 Change % share
2018

ICICI Prudential Mutual

305739 242961 62778 26% 13%
Fund

HDFC Mutual Fund 300549 237178 63371 27% 13%

Aditya Birla Sun Life

247530 195050 52480 27% 11%
Mutual Fund

Reliance Mutual Fund 244904 210891 34013 16% 11%

SBI Mutual Fund 217650 157025 60625 39% 9%

UTI Mutual Fund 154940 136810 18130 13% 7%

Kotak Mahindra Mutual

124691 92216 32475 35% 5%
Fund

Franklin Templeton
103152 81615 21537 26% 4%
Mutual Fund

DSP BlackRock Mutual

86326 65199 21127 32% 4%
Fund

MUTUAL FUNDS

5
Mutual funds are professionally managed investment funds that pools money from investors to
purchase securities. In other words, mutual funds refer to as an investment vehicle in which a
professional money manager make investments or allocate the funds with an attempt to produce
capital gain for the fund’s investors. It is a portfolio which is structured as to match the
investment objectives state in prospectus. Mutual funds are type of investment vehicle which
consist of portfolio of bonds, equity or other securities.

Types of Mutual Funds

1. Equity Funds
2. Debt Scheme
3. Hybrid Scheme
4. Other Schemes

Working of Mutual Funds

MUTUAL FUNDS: ADVANTAGES AND DISADVANTAGES

Advantages:

Dividends and other interest income can be reused to purchase additional shares.

Mutual funds help in reducing the risk by the use of diversification as it invests in anywhere
from 50-200 securities.

Mutual funds are convenient as they are easy to buy and easy to understand. They are
traded once in a day at closing NAV (net asset value).

Mutual funds are convenient as they are easy to compare as various matrices such as risk,
return and prices are readily available.

Disadvantages:

Fees of mutual fund manager differ according to the type of mutual fund scheme chosen.

It is impossible to find a mutual fund with guaranteed return, as business environment is

unpredictable and dynamic.

Mutual funds are associated with high cost as there are various commission charges
depending upon the fund chosen along with additional fees.

1.1 Role at the Company

6
1.My role at the company was to bring the business to the company from the banks assigned to
me from a specific area.

2.To extract maximum business from banks by getting more and more SIP(Systematic
Investment Plan) or Lump Sum in Adtiya birla sunlife mutual fund scheme filled by them.

3.To regularly visits banks mainly PSU’s bank like Bank of Baroda,Dhanlaxmi Bank and private
bank like IDBI bank, Bandhan Bank, Karor Vayasya Bank, Axis Bank.

4.Maintaining good relationships with banks employees so that they give preference and pitch
ABSL MUTUAL FUND to the prospective customers.

5.To educate bank employees or the prospective customers about the scheme of mutual fund and
its advantages compared to other funds and which ABSL MUTUAL FUND scheme is suited for
them according to their needs or investment plans.

6.To verify and check all the necessary documents like PAN Card,Passport size photograph and
KYC form is attached to the ABSL MUTUAL FUND form.

2.(1)
7
 OBJECTIVES

1. The main objective of this project is concerned with the satisfaction level of investors
invested in mutual fund schemes or others.

2. To analyse the perception of investors towards mutual fund schemes.

3. To examine penetration of mutual funds among Indian financial market.

4. To know the preference of investors while investing with respect to risk, return, liquidity,
wealth, tax and short term parking of funds.

5. To know the various mutual funds schemes available to a investor in india according to
its needs.

(2.2)RESEARCH METHODOLOGY (TILL DATE)

8
This research will focus on how investors makes investment in mutual funds and other
schemes.This chapter will information about the research methodology used for this study. This
includes the details of how study will be done, research design, sampling methods, data
collection methods and analysis.
.
Research design- The study will use secondary data of the selected companies which will be
available on the internet.

Sample size-45 Respondents

Data collection

Primary data- Primary data is an information that we collect specifically for the purpose of our
research project. An advantage of primary data is that it is specifically tailored to your research
needs. A disadvantage is that it is expensive to obtain as well as time consuming.

The primary data for this research has been collected with the help of a structured
questionnaire that has been floated among various investor and salaried people

Secondary data- Secondary data refers to data which is collected by someone who is someone
other than the user. Common sources of secondary data for social science include censuses,
information collected by government departments, annual reports of companies, organizational
records and data that was originally collected for other research purposes.

The secondary data for this research will consist of all the information related to the
risk and return, performance of mutual funds schemes mentioned in ABSL Fact
Sheet,websites and journals.

QUESTIONNAIRE
I. NAME

9
II. GENDER

III. AGE
 20-25yrs
 25-30yrs
 30-35yrs
 35-40yrs
 40&above
IV Annual Income
 Below Rs 1,00,000
 1,00,000-3,00,000
 3,00,000-5,00,000
 5,00,000 & above
Q1.Do you save a portion of your income?
 Yes
 No
Q2.How much of your income do you save?
 10% or less
 11-20%
 21-30%
 40% and above
Q3.What is your saving objective?
 Retirement
 Personal needs
 Uncertainities
 Childs education

Q4.Where do you generally prefer to invest in?

 PPF
 Fixed deposit
 Mutual funds
 Real estate
 Saving account
Q5.Do you invest in mutual funds?
 Yes
 No

Q6.If no then,what be the reasons for not investing in mutual funds?

 Lack of guidance
 Lack of knowledge

10
  Risky investment
 No particular reason
Q7. If yes,how many years you have been investing in mutual funds?
 Less than 3 years
 4yrs-7yrs
 8yrs-11yrs
 12 yrs&above
Q8.How do you learn about mutual funds?
 Newspapers
 Magazines
 Internet
 Agents
 Employee
Q9.Which feature of the mutual funds allures you the most?
 Diversification
 Better return and safety
 Regular income
 Tax benefit

Q10.Which asset class do you invest in?

 Equity
 Debt
 Balanced
 Liquid
 Hybrid
Q11.In which company’s mutual fund you have invested in?
 Sbi-mf
 Hdfc
 Birla sunlife
 Franklin temptation
 Reliance
Q12.When you invest in mutual funds which mode of investment do you prefer?
 One time investment
 Systematic investment plan(SIP)
 Systematic transfer plan(STP)

Outcome Achieved
Q1.Do you save a portion of your income?

11
INTERPRETATION
From 45 respondents,89% said they save a portion of income,11% said they don’t save a portion
of their income.
Q2.How much of your income do you save?

INTERPRETATION
Majority of respondents saves about 11%-20% of their income
Q3.What is your saving objective?

INTERPRETATION
34% Of respondents saves for their personal needs and 25% saves of their children education.
Q4.Where do you generally prefer to invest in?

INTERPRETATION
Out of 45 respondents,28(63.6%)said they invest in mutual funds schemes and 23(52.3%)invest
in fixed deposit.
Q5.Do you invest in mutual funds?

INTERPRETATION
60% respondents invests in mutual funds,40% of them not invest in mutual funds.
Q6.If no then,what be the reasons for not investing in mutual funds?

INTERPRETATION
Here lack of knowledge contributing is the main reason for not investing
Q7. . If yes,how many years you have been investing in mutual funds?

INTERPRETATION
Most(39%) of the respondents said they are investing in a period of 0-3 years.

Q8.How do you learn about mutual funds?

INTEPRETATION

12
37% of the respondents said they got to know from agents.

Q9.Which feature of the mutual funds allures you the most?

INTERPRETAION
Better return and safety feature allures the most to respondents.
Q10.Which asset class do you invest in?
INTERPRETATION
Most(44%) of the respondents invest in equity schemes
Q11.In which company’s mutual fund you have invested in?
INTERPRETATION
17(63%) Respondents said they invest in birla sun life mutual funds
Q12.When you invest in mutual funds which mode of investment do you prefer?
INTERPRETATION
78% of respondents said they prefer SIP.

3. LEARNING FROM SIP(TILL DATE)

13
From the day I have started SIP at Adtiya Birla Sunlife Asset Management I have gain some
exposure and practical knowledge in the mutual fund industry and how the bank system is and
their working environment is. I got the opportunity to get in-depth knowledge of finance as well
as marketing(sales).

In the beginning of internship we were given brief knowledge and training regarding following
mentioned:-
(a)Mutual Funds
(b)How to fill up the ABSL mutual fund application form.
(c)Various documents required or are mandatory when a person subscribe to a mutual fund
schemes lke Pan Card, Address Proof(Aadhar Card, Account Statement),Passport size
photograph.
(d)Various schemes of ABSL Mutual Fund like Equity fund,Frontline Equity Fund,MNC
Fund,Tax relief 96.
(e)How to do tax saving through mutual fund by investing in ELSS Fund.
(f)Scope of wealth creation through mutual fund for a longer period of time.For example if you
have invested lump sum of Rs 1,00,000 in ABSL Equity Fund 19.5 years ago,that would have
grown to Rs 67,00,000 today.
 At the start of training we were also given training specially on their NFO(New Fund
Offer)-Retirement Fund(an open ended retirement solution oriented scheme having a
lock-in of 5 years.)
 How the banks and AMC works together to achieve their desired objectives.

Various terms in mutual fund industry which i learned during the SIP:
(A)Systematic Investment Plan(SIP):- A Systematic Investment Plan is an investment vehicle
offered by mutual funds to investors, allowing them to invest small amounts periodically instead
of lump sums. The frequency of investment is usually weekly, monthly or quarterly.
(B)Asset Allocation: The distribution of total funds available with the scheme into instruments
of various types such as stocks, bonds etc. based on the scheme's investment objective as detailed
in the offer document.
(C) Net asset value (NAV):- represents a fund's per unit market value. This is the price at which
investors buy fund units from a fund company or sell it back to the fund house. It is calculated by
dividing the total value of all the assets in a portfolio, minus all its liabilities.

14
(D)Benchmark: The investment performance of the scheme needs to be compared in relative
terms against some indicator, which is called as the benchmark for the scheme. For example, the
performance of an equity fund is benchmarked against the BSE Sensex.
(E)Capital Gains: The profit realizations on sale of securities and certain other capital assets
(including units of mutual funds) are called capital gains. The gains can be classified into long-
term, if the investments are held for more than one year, or short-term, otherwise, and are
charged at different tax rates

(F) Entry Load: It is the load charged by the fund when one invests into the fund. It increases
the price of the units to more than the NAV and is expressed as a percentage of NAV. For
example a 1 % entry load will increase the NAV from Rs 11 to Rs 11.11 and therefore the
number of units allotted will be lesser to that extent.

(G)Expense Ratio: The Expenses of a scheme include management fees and all the fees
associated with the scheme's daily operations. Expense Ratio refers to the annual percentage of
fund's assets that is paid out in expenses and can effect the performance of the scheme.

(H)Gilts/Government Securities: Securities created and issued by the Central Government

and/or a State Government, and may include securities unconditionally guaranteed by the
Government. The coupon on these securities is determined by an auction process.

(I)Indexation: The capital gains arising out of selling mutual fund units are taxed at Long Term
Capital Gains rate if they are held for more than one year. The Long term capital gains rate can
be computed either as 10 % flat or 20 % with indexation benefit. For this the government has
specified an index linked to the wholesale price index. The indices of two years (year of
purchase and the year of sale) are used for the purpose of computing capital gains tax. The
purchase price is multiplied by the index of the year of sale and the product is divided by the
index of the year of purchase. This indexed purchase price is deducted from the sale price to
calculate the indexed capital gains. The tax rate of 20 % is applied to the indexed capital gains.

15
 4. Plan for next 1 month of SIP

Next 1 month of sip will be crucial for me as I have gain some practical knowledge and the
nerves of being new to this mutual fund industry has been settled.I am looking for double the
output in next 1 month of my sip in terms of more lumpsums or sip’s.
Also I am looking forward to learn from my mistakes which I have done during this tenure,I am
planning to less approach the customers at banks by myself, instead get the banks employee to
approach the customers, as the customers posses more trust on bank employees rather than me.
Also I would change one more thing to spent less time on a bank branch which is less
corporative or where the business is negligiable, instead give that time on that bank which give
more business to us.
Also circulating the questionnaire to more people to know about their perception in investing
mutual fund schemes or other schemes like FD, Saving account..

16