Financial and Investment Planning in Reference To Mutual Funds Industry

FINANCIAL AND INVESTMENT
PLANNING IN REFERENCE TO
MUTUAL FUNDS INDUSTRY
INTRODUCTION
• Mutual Fund has emerged as a method to ensure one's
financial well-being in just a few years. In addition to contributing
to India's growth story, Mutual Funds have also helped families
tap into Indian Industry success.
• As knowledge and understanding grow more and more people
appreciate the advantages of investing in mutual funds. The key
reason the number of investors in retail mutual funds remains
low is that nine out of ten people with income in India do not
know there are mutual funds.
• The project can be divided into three parts
• The first part of the project can be described as an introduction to the industry
to the interns providing them a steep learning curve and insights to the mutual
fund industry.
• The second part of the project was more of an application based where
interns were given opportunity to work in the industry with mentors guiding
them to create financial, goal-based, risk plans for investors by consulting
them about the mutual fund industry and contacting people for creating a
business distributor channel. Interns were given tasks to learn something
about digital marketing too and a rubric was also provided for selling of mutual
funds.
• The third part of the project was to analyze and interpret the data collected
through the questionnaire which provided a holistic view towards the behavior
of investors in terms of their current planning and investing habits.
WHAT IS A MUTUAL FUND?
• A mutual fund is a pool of money managed by a professional
money manager.
• The objective and the risk level are outlined in a document

called a prospectus. The prospectus provides detailed
guidelines for the types of investments the manager can
purchase.
• A mutual fund is also known as an open-ended investment fund,

which means the fund sells units (of this pool on money) upon
request.
What are the benefits of
purchasing a mutual fund?
1 Professional Management: The fund company hires talented money
managers who have many resources behind them (including a team
of people dedicated to researching, tracking, determining trends, and
doing thorough analysis), and who work full time on your behalf.
2 Diversification: Lowers the risk because, regardless of the size of

your investment, each unit purchased is made up of many different
investments.
3 Liquidity: Mutual funds can be sold anytime, and easily
4 Flexibility: Mutual funds allow you to purchase as much or as little as

you want, and offer a variety of purchase plans.
OBJECTIVES
• Mutual fund industry has witnessed an increasing trend in past
few years; numerous new players have entered the market with
numerous unique selling propositions.
• To study about the Mutual Funds in India
• To study the various Mutual Funds schemes in India.
• To find out the preferences of investors through financial
planning
• The establishment of the distribution channel for financial
products
Organization Profile
• Amplify Wealth Consultants LLP is an innovative financial service
organization duly registered with the Association of Mutual Funds in
India (AMFI) for offering mutual fund solutions and others financial
Products like Fixed Deposits, Insurance (Life, Health, Motor), Loans
(Home Loan, Personal Loan, LAS, LAP, etc.) to the investors,
individuals, and organizations, which can benefit from them.
• Amplify Wealth has been established by a team of well informed
financial intermediaries, industry veterans, and senior academic
professionals who can guide investors in their best interest. Our aim
is to be one-stop solutions for offering financial products to help
clients to manage their wealth efficiently and effectively. The primary
goal of the company is to provide high-quality financial advice for
investors seeking better investment opportunities.
What are the three
different investment styles
for equity investing?
• Fund managers have different styles of investing. Their style
affects the type of stocks they will purchase, and the price they
are willing to pay. This, in turn, affects your future returns.
1 Value: A manager purchases stocks that offer value at a time

when the price of the stock is low, relative to the actual book
value. In other words, the company is selling for less than it is
worth.
* Note: This is the most conservative approach.
3 Growth: A manager purchases stocks that are deemed to have
growth potential, which, in turn, could generate above average
returns in the future.
* Note: Growth investments are usually small- to medium-sized
companies, thereby increasing the risk exposure.
3 Momentum/Sector rotation: A manager purchases sectors that

are, or that they think will soon be, "hot." The choices are
determined by the manager's anticipation of where the greatest
potential rests.
* Note: This is a high-risk way of investing.
Other investments with structures similar to a mutual fund include

clone funds, and segregated funds.
Some facts for the growth of
mutual funds in India
• Huge growth in the last 6 years.
• Our saving rate is over 23%, highest in the world. Only channelizing these
savings in mutual funds sector is required.
• 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing
cities.
• SEBI allowing the MF's to launch commodity mutual funds.
• Emphasis on better corporate governance.
• Introduction of Financial Planners who can provide need based advice
Work Done During The
Internship
The internship project at amplify wealth consultants was an
industry-oriented project that was not confined to a single project,
but rather completed multiple projects assigned.
•PROJECT #1: The first project was for the first two weeks of
the internship where interns had to learn about mutual fund
industry wherein they had to work on the theoretical part of
the internship through e-learning by watching ample amount
of videos and reading articles available on internet creating a
deeper understanding for further projects and the mutual fund
industry itself.
• Project #2: The Next project in line was given to us was to
create a questionnaire and do the analysis of prospects for
goal-oriented and risk planning.
• Project #3: The project had been in-line to social media

marketing and digital marketing, where interns were
assigned tasks for:
1. Making of posters in reference to mutual fund distributor

business model
2. Creating videos in reference to mutual fund distributor business
model
3. Creating PowerPoint template for amplify wealth was one of the
tasks given
4. Learning about different social media channels and handling
them for more reach of the company
• Project #4: The Next project was given to us was to create a
questionnaire for the analysis of prospects who were
looking to create a business opportunity in the arena of
mutual fund industry.
This task was in-line with the above project wherein interested
prospects were approached through a proper channel
taught us by Dr karminder Jit Ghumman for explaining the
benefits of mutual fund industry and as an business
opportunity.
• Project #5: This project was the final internship project in
which a section was provided to sell mutual funds for
amplify wealth advisors as an presentation to a sales
department in which interns had invited people to sell the
mutual funds by illustrating the advantages of the industry
with lower investment for a longer time which would
provide higher returns than any other investment option.
• Project #6: For this project, few questions from the

questionnaire were analyzed to understand the behavior of
the investor towards investment and Risk profiling.
MAJOR FINDINGS
• Most of the people have been investing their money in the share
market and mutual fund industry because they have knowledge
about the industry.
• Mostly investors prefer monitoring their investment on monthly
basis.
• Most of the Investors wanted to invest in mutual funds but were
not convinced enough to do so due to nature of returns and risk
involved.
• As an industry powered by expertise, it is difficult to identify a
certain competence and needs a lot of individual experience
when approaching a customer
• Skill gap poses a negative influence on the industry
CONCLUSION
• After the successfully completion of my summer internship I
understood that market understanding is an important aspect for a
company throughout the life cycle of a particular product. It helps
in knowing the changing taste, preference, life style etc. of the
consumer.
• A mutual fund is the ideal investment vehicle for today’s complex
and modern financial scenario. Markets for equity shares, bonds
and other fixes income instruments, real estate, derivatives and
other assets have become mature and information driven. Today
each and every person is fully aware of every kind of investment
proposal.
• Everybody wants to invest money, which entitled of low risk, high
returns and easy redemption. In my opinion before investing in
mutual funds, one should be fully aware of each and everything.

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FINANCIAL AND INVESTMENT

• The objective and the risk level are outlined in a document

• A mutual fund is also known as an open-ended investment fund,

2 Diversification: Lowers the risk because, regardless of the size of

3 Liquidity: Mutual funds can be sold anytime, and easily

4 Flexibility: Mutual funds allow you to purchase as much or as little as

1 Value: A manager purchases stocks that offer value at a time

3 Momentum/Sector rotation: A manager purchases sectors that

Other investments with structures similar to a mutual fund include

• Project #3: The project had been in-line to social media

1. Making of posters in reference to mutual fund distributor

• Project #6: For this project, few questions from the

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