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Sales Promotion
&
Distribution
of
Birla Sun Life Mutual Fund
Prepared by-
Saurabh Jain
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What is a Mutual Fund ?
It is a pool of money, collected from investors, and is
invested according to certain investment objectives
The ownership of the fund is thus joint or mutual, thefund belongs to all investors.
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Poolmoney
InvestGenerate
Passbackto
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Working of Mutual Fund
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SEBI
AMC
Unit
Saving
Unit
Trus Investmen
Return
Trust
AMCCustodian
Registrar
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History of Mutual Fund
First phase(1964-87)UTI by RBI
Second phase(1987-93)
Entry of publicsector funds.
Third phase(1993-2003)
Entry of privatesector funds.
Fourth phase(since 2003)
UTI & UTImutual fund.
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Types of Mutual Fund
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Investment in Mutual Fund
Advantage Professional
Management.
Diversification. Return potential.
Low costs.
Liquidity.
Choice of schemes. Transparency.
Disadvantage No guarantees.
Fees and
commissions. Management Risk.
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About Company
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Building strong brands
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Structure of BSLAMC
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Distribution network
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vIFA (Individual Fund Advisor): Acquisitionof individual fund advisor with the companyto sale the product of Birla Sun Life.
vN. D. (National Distributors): Companymake the contract with big distributors tosale the product of company.
vS.M.E. (Small & Micro enterprises):Small enterprises have to empanelled withcompany to sale the product of Birla Sun Life.
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vP.S.U. (Public sector units): Company
distribute their product with various publicsector units like: Axis Bank.
vDirect marketing( Tele marketing):Company do the call to their existing bigcustomers to purchase the product ofcompany.
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SWOT Analysis
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Position of thecompany today
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Mutual Fund
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Equity Debt Money Market
Equity FundsIndex FundsSector Funds
Fixed IncomeFunds
GILT Funds
Money MarketMutual Funds
Balanced Funds Liquid Funds
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ELSS E uit linked savin
3 year lock in period
Minimum investment of 90% in equity markets atall times
So ELSS investment automatically leads toinvestment in equity shares.
Open or closed ended.
Eligible under Section 80 C upto Rs.1 lakh allowed
Dividends are tax free.
Benefit of Long term Capital gain taxation.
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S l P i
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Sales Promotion
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What is the role of Brokers in a mutual
Enable investment managers to buy sell
securities
Brokers are registered members of the stockexchange
They charge a commission for their services.
In some cases provide investment managers withresearch reports
Act as an im ortant source of market information.
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Distribution Channels
Individual Agents- A person has to sign anagreement with a fund on non judicial stamppaper. He has to be AMFI certified also to sellMutual Fund products.
Distribution Companies
Banks and NBFCs
Post Offices
Direct Marketing
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Challenges involved in
Market condition Convincing the investors
Lack of schemes knowledge
Giving ideal advice
Not having a proper office
Extensive availability of the central govt.assured return
Delay (in Liquidity) Tardy inter-city payment system
Transaction cost of establishin contact
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What are the expenses
Investment management fees to the AMC Custodians fees
Trustee fees
Registrar and transfer agent fees
Marketing and distribution expenses
Operating expenses
Audit fees
Legal expenses
Cost of mandatory advertisements & communications toinvestors
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Wealth c cle for investors
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MY WORK
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Collect the data through survey
Also refer to database provided by the company-
Persuade client through telephonic conversation by explaining the product
Personally meet client and carry out the procedure for empanelling him withthe company
Follow client activities afterwards
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AMFI certification is mandatory for brokers to dealin mutual funds
The training is kept on weekends.
Free of cost
Our main motto
REAL ESTATE AGENTS
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REAL ESTATE AGENTSAND WHOLESALERS
Our tasks
To make them invest in our liquid fund
Make them brokers
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OUR LIQ UID FUND
In banks, one gets only 3-4 % interest
Our liquid fund gives 7-8% return
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Q . An investor invested in an approved Liquid Fund on
Jan. 1, 2009 for Rs. 10,00,000/-. He wants his money
back on Jan 10, 2009. Calculate the interest money he
will receive. ( Ignore indexation).
Answer :
Assuming 8% return-
Interest- 10,00,000 8/100 10/ 365 =
Rs. 2191.78
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MAKE THEM
NUMERICAL
Q . If a broker finds an investor who invests in an
approved Liquid Fund on Jan. 1, 2009 for Rs.10,00,000/-. He got his money back on Jan 10,2009. Calculate the brokerage money broker willreceive.
Brokerage-10,00,000 8/100 10/ 365 0.30 = Rs.657.53
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Occupation
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OCCUPATION
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AWARENESS ABOUT
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INTEREST IN BECOMING
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AWARENESS ABOUT
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BRAND IMAGE OF BIRLA
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INDEPENDENT VARIABLES-
Reputation of company (RC) Schemes (S) Relationship with distributors (RD) Advertisement(AD)
DEPENDENT VARIABLE-
Overall reputation
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OR is a function of RC, S, RD & AD.
i.e. OR = f (RC, S, RD, AD)
OR= -0.317+0.137* RC+0.1069*S+0.3209*RD+0.612 AD
R2 has found to be 0.654.
It means that there is a strength of 65 % betweendependent & independent variables.
65 % characteristics of dependent variable can be
explained with the help of all independent variables.
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SCATTER DIAGRAMS
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DURATION OF BUSINESS
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AWARENESS ABOUT
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INVESTMENT IN
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AWARENESS ABOUT
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BRAND IMAGE OF
KEY OBSERVATIONS &
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KEY OBSERVATIONS &FINDINGS
2) BSLAMC has successfully able to penetrate the Indianmutual fund industry with the help of independent financialadvisors.
2) Total assets has maximized by a net Rs 6398 cr. fromJanuary to February 2009.
3) BSLAMC has evolved as the best performer even in theworst scenario when market was going down.
4) There is a very cut throat competition in mutual fundindustry & if BSLAMC able to continue its past 1 yearperformance, it will come at the second spot just afterReliance MF in the upcoming years.
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5) Direct interaction with IFAs brings many issues. These werepositive as well as negative. All these issues were of equalimportance & BSLAMC has able to tackle these issues verywisely.
6) There are many challenges involved in distribution channelswhich have been mentioned in the project.
7) Regression analysis shows that Relationship withdistributors & advertisement are the two most important
factors affecting the overall performance of BSLAMC.8) Majority of the distributors believe that BSLAMC has donereally a great job even in the low market. BSLAMC leads thistally followed by Reliance MF.
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9)Generally it is believe that if a person is associatedwith a company for a good number of years (>6years), the more he can generate business for thatcompany. To invite customers, it doesnt demand onlyexperience, but a good convincing power & a good
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Thank
