NJ INDIA INVEST PVT

NJ INDIA INVEST PVT. LTD.

A study on Role of National Distributor in Mutual Fund

What is a mutual fund?

Mutual Fund is the pool of money from the investors to invest in different securities according to certain objectives.

Mutual fund constituted as a TRUST, act as a vehicle which helps to mobilize moneys from investors and invest in different markets and securities.

In other words, through investment in a mutual fund, a small investor can avail of professional fund management services offered by an Asset Management Company.

Types of mutual funds:

Open ended Close ended Interval scheme Equity fund Debt fund Balance fund Liquid fund Guilt fund Sector fund ELSS RGESS

Distribution channel of MF:

IFA(individual financial planner)

Banking channel

Direct Channel

National distributor

Role of national distributor:

Person working as a direct channel or IFA have move to take the support of National Distributors because :

1. they have lots of issues to deal with Person as an IFA, they have to deal with – getting clients, servicing them, maintaining records etc.

2. Leading distributors like Bajaj Capital and NJ India have built a strong distribution force of sub-brokers among the mutual fund market, distributors like Funds India and iFAST are slowly gaining acceptance among the advisors. Both Funds India and iFAST have two ways of dealings – B2B and B2C. Under the B2B model, they deal with advisors and through the B2C model they deal with investors directly.

3. Apart from providing buying and selling mutual funds online, these NDs/platforms provide a host of value add services to its partners.

Introduction to the company:

established in 1994

located in 97 different places in India

Located in 3 countries

have around 1100 + employees all over India

18,000+ active partners

Current AUM is 22000+ crore

How NJ works:

NJ India Invest Pvt.Ltd . is totally based on B to B model.

In addition to it, NJ has divided its business into various divisions for providing support and training to its partners/advisors as well as making it helpful to its employee.

NJ Funds Network, started in 2003, is a dedicated channel for providing independent financial advisors or IFA's with a complete business platform for the strengthening and development of their advisory practice. NJ offers advisors under its network will all the products; support and services that enables them add considerable value to their business, emerge as a 'new age professional financial advisor' in the industry

NJ India Business Model:

Sales Support Marketing Support Research Support Customer Support Training &

Development

Support

Dedicated

Relationship

Managers

Attractive Schemes Research on MF

Schemes

Online Query

Module

Business Planning

Ongoing Training and

Development

Latest Presentations

and Calculators

Market Trends Toll Free Number

For Partners

Task and Team

Management

Activity Planning Weekly and Monthly

Publications

Equity and Debt

Analysis

Quick TAT for

Faster Resolution

Advance Advisory &

Financial Planning

Designing Strategies Print shop     Soft skill and

Personality

Development

Target Setting Your Branded Items     Sales and Motivation

Regular Monitoring Quality Material     Products And

Markets

  Door Step Delivery     Basic Certification

AMFI etc.

BROKERAGE EARNED BY MUTUAL FUND DISTRIBUTORS:

three types of brokerages are earned by financial advisors: Upfront Trail RAP

SWOT Analysis:

STRENGTH

* Strong client base

* Around 20 years of experience

* Top in National Distributors

* Better technological support provided

WEAKNESS

* Lack of office space

* Lack of ground agent

OPPORTUNITY

* Rapid expanding asset management market

* More demand for quality advisor provider

* Increase number investors

THREATS

* High market competition

* Need to compete even with banking channel

* Growing individual competitor

* Increase in the fee of AMFI Certification

Objective of the study:

To know different role played by national distributors To know their market share in Total Asset Under

Management (AUM) To know Future planning of the national distributors To test the awareness level in the market about mutual

fund To know the views of Investors and Advisors toward

National Distributors role. To know its distribution to Insurance Advisors

Research methodology:

Research Design:The present study will adopt the exploratory approach and also Descriptive Research

Descriptive research is a study design to depict the participants in an accurate way. The main ways to collect the information are: observational, survey and case study

COLLECTION OF DATA:  1: SECONDARY DATA: It was collected from internal sources.

The secondary data was collected on the basis of organizational file, official records, newspapers, magazines, management books, preserved information in the company’s database and website of the company.

  2: PRIMARY DATA: All the people from different profession

were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire.

SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics.

Sampling Units: insurance advisors, Chartered Accountants, Tax Consultants.

Sample Technique: Random Sampling, convenience sampling

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview

SAMPLE SIZE: The sample size for this project was 150 respondents. Area Covered: New Delhi from 15 May to 30 July 2014

Findings:

1. 58% of the Advisors do not have the knowledge about the Mutual Fund. 

2. Though 42% of insurance advisor knows about the mutual fund but they do not have the detail knowledge about the mutual fund. 

3. Brokerage in mutual fund is very low as compare to insurance.

4. Most of the Insurance Advisor know about the company NJ India Invest.

5. Though they know the company name but most people do not have the knowledge that it is the top most national distributors in mutual fund distributors.

6. Though NJ India organize seminar regarding mutual fund time-to-time, only few of the insurance advisor are interested in attend them.

7. However, 82% of the people who have attended the seminar found it beneficial.

8. 75% people do not want to be AMFI certified because of the fee charges.

9. Most people have wrong concept that they have to give more time to mutual fund that to insurance. Due to this they perceive their Insurance advisory job might be in danger. 

10. NJ India has provided it partner with better support by helping them in passing the AMFI certified Exam. 

11. ARN holders who are working independently also want to associate with NJ India due to its support n training and development facilities. 

12. NJ India is providing all the necessary support in helping its partner in dealing with the clients.

13. People want to invest in mutual fund for various purposes, however, good return and safety was the majority of all.

14. NJ India has organized various awareness program regarding mutual fund.

15. It is further planning to open an institution for providing information regarding mutual fund.

16. NJ India is also going to conduct seminar regarding mutual fund in various colleges.

Conclusion:

On the basis of research we can say that mutual fund is growing with the great speed and the reason behind it is a dedication of national distributors like NJ India Invest. NJ India works with a principle of “Built on Trust”. Hence it is success in carrying it principle as many of the Insurance advisors are getting converted to the advisor of mutual fund too. National distributors are not only creating awareness among the people, but also have increased the commission in the mutual fund house.

Today each and every people are aware of the kind of investment mutual fund. They are curious about the type of return they get in mutual fund and are asking the mutual fund advisors about the schemes in mutual fund. This was only possible due to the awareness of mutual fund by national distributors.

I found that 58% of the Advisors do not have the knowledge about the Mutual Fund. So it is big opportunity for NJ India Invest Pvt. Ltd to convince the advisors and bring them in mutual fund industry.

Only 15% of the advisors are partner with NJ India. So it is opportunity to have good business with rest 85% of advisors due to less competitor.

40% of people see safety while investing, 38% people see good return and 22% see liquidity while investing. So majority of the people are looking for mutual fund due to safety, good return and liquidity.

Most of the advisors (that is 90%) said that NJ is providing support to them. 70% of the peoples are satisfied with NJ training and support. So they are providing good business

opportunity and lifetime support for advisors and is the leading financial distributor of India. But 30% of peoples are still not satisfied.

44 AMCs are tied up with NJ INDIA. So advisors got a good platform to do a good business through 44 AMCs

Suggestions:

NJ should decrease charge upon AMFI test.

NJ should expand its awareness program from insurance advisors to general public and college level

It should also create program or advertise in term of brand building Give more importance to safety and return attributes.

Financial Advisors are more concern about the safety and of giving more benefits of the investment to their clients

By providing better service NJ India Invest should try to attract the independent Financial Advisors to join them.

Tax benefits should be highlighted to attract public sector employees for investment in mutual fund.

Annexure:

Q1. Are you an Insurance advisor?1. Yes2. No3. Used to  Q2. How long have you been working as a Insurance Advisor?1. 0 – 5 years2. 5 – 10 years3. Above 10 years

Q3. Have you heard about Mutual Fund?1. Yes2. No  Q4.1.Do you know detail about mutual fund?1. Yes2. No  Q4.2.Are you partners to NJ India Invest?1. Yes2. No

Q5.1. Have you attended any seminar organized by NJ India regarding Mutual Fund?

1. Yes

2. No

Q5.2. Does the seminar helpful to understand the mutual fund?

1. Yes

2. No

Q6. Do you want to be AMFI certified?

1. Yes

2. No

3. Already

Q7.1.Do you want to invest in mutual funds?

1. Yes

2. No

Q7.2. If yes, what factors do you keep in mind before investing in mutual fund

1. Safety

2. Return

3. Liquidity

Q8.1. If partner, have NJ India provided any training for your AMFI certification?

1. Yes

2. No

Q.8.2. Was the training program helpful?

1. Yes

2. No

Q8.3. Is NJ providing you support currently?

1. Yes

2. No

Q8.4. Are you satisfied with the services provided by the NJ India Invest?

1. Yes

2. No

Name: ……………………………………………. E-mail Id: ………………………………………… Contact No: ……………………………………… Office Address: ………………………………….

Thanks for your Co-operation