For
Sundaram Finance
By
submitted
In Partial fulfillment for the award of the degree
For
Sundaram Finance
Prof.R.K.Sharma
And
Mrs.Sayanti Banerjee
DECLERATION
I hereby declare that this Project Report entitled “CONSUMER AWARENESS OF
DIFFERENT INVESTMENT PLAN” submitted in the partial fulfilment of the
requirement of Master of Business Administration (MBA) of NEW DELHI
INSTITUTION OF MANAGEMENT, NEW DELHI is based on primary & secondary
data found by me in various departments, books, magazines and websites. The
information submitted is true & original to the best of my knowledge.
Faculty Comment:-..................................................................................................
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Name: Name:
EXECUTIVE SUMMERY
In few years all different investment plan has emerged as a tool for ensuring one’s
financial well being. Investment plan have not only contributed to the India growth
story but have also helped families tap into the success of Indian Industry. As
investing in all investment plans. The main reason the number of investors remains
small is that nine in ten people with incomes in India do not know that investment plan
exist. But once people are aware of mutual fund, equity, commodity, life insurance etc
investment opportunities, the number who decide to invest in all investment plan
increases to as many as one in five people. The trick for converting a person with no
the potential investors are more likely to buy mutual funds and to use the right
arguments in the sales process that customers will accept as important and relevant to
their decision This Project gave me a great learning experience and at the same time it
gave me enough scope to implement my analytical ability. The analysis and advice
presented in this Project Report is based on market research on the saving and
investment practices of the investors and preferences of the investors for investment in
different investment option. This Report will help to know about the investors
Preferences in Mutual Fund means Are they prefer any particular Asset Management
TABLE OF CONTENTS
Chapter - 1 INTRODUCTION..
………………………………………..........7
Chapter-10 QUESTIONAIRE……………………………………………….68
INTRODUCTION
Sundaram Finance Ltd incorporated in 1954 has grown today into one of the most trusted
financial services groups in India.
Today, the activities of the group span savings products like Deposits and Mutual Funds,
Car and Commercial Vehicle Finance, Insurance, Home Loans, Software Solutions,
Business Process Outsourcing, Tyre Finance, Fleet Cards and Logistics Services.
Subsequently, the equity shares of the company have been delisted from Madras Stock
Exchange Limited (MSE) with effect from January 27, 2004, in accordance with SEBI
(Delisting of Securities) Guidelines, 2003, for voluntary delisting
New Delhi Institution Of Management Page 6
The strength of the Group lies in the quick completion of transactions, long association with
transporters for generations and the intimate knowledge of the market and its nuances.
The Group has a vast network of over 400 branches to cater to the financing needs of our
customers. The company was started with a paid-up capital of Rs.2.00 Lakhs and later went
public in 1972.The Company's shares were listed in the Madras Stock Exchange in 1972 and
in the National Stock Exchange in January 1998.
Sundaram Finance Group is driven by value and culture, where individual initiatives are
encouraged. For nearly fifty years, SFians have created an asset of immense value - the
Sundaram Finance Group?s reputation for integrity and high standards of business conduct.
This reputation, built over many years, is reflected in each business or personal transaction.
Integrity in all actions and thought is necessary for every employee or prospective employee
of Sundaram Finance Group.
Obsession for Excellence, Speed, Openness to new ideas, Aggressive Goals, Accountability
& Commitment are some of the virtues that we expect from our employees.
The Sundaram Finance Group has been established on a bedrock of honesty, transparency
and a reputation for customer service across more than one hundred locations in India.
COMPANY PROFILE
Website : www.sundaramfinance.in
COMPANY HISTORY
Sundaram Finance, a Sundram Group company, was incorporated in 1954,
with the object of financing the purchase of commercial vehicles and
passenger cars. The company was started with a paid-up capital of Rs.2.00
Lacks and later went public in 1972.
The company's shares were listed in the Madras Stock Exchange in 1972
and in the National Stock Exchange in January 1998.
Subsequently, the equity shares of the company have been delisted from
Madras Stock Exchange Limited (MSE) with effect from January 27, 2004,
in accordance with SEBI (Delisting of Securities) Guidelines, 2003, for
voluntary delisting.
Sundaram has grown today into one of the most trusted financial services
groups in India. Today, the activities of the group span savings products like
deposits and mutual funds, car and commercial vehicle finance, insurance,
home loans, software solutions, business process outsourcing, tyre finance,
fleet cards and logistics services. The strength of the Group lies in the quick
completion of transactions, long association with transporters for
New Delhi Institution Of Management Page 8
generations and the intimate knowledge of the market and its nuances.
The Group has a vast network of over 400 branches to cater to the financing
needs of our customers.
Sundaram Finance is one of the oldest and largest providers of finance for
the acquisition of commercial vehicles of all makes. The commercial
vehicle finance provided by it helps the small operators to acquire vehicles
with minimum hassle and documentation. It provides customised financing
options to suit the needs.
Large fleet operators also find it easy to expand their fleet through the
finance provided by the company. It also offers special schemes, supported
by the manufacturers, where the rates are highly competitive. The finance
schemes are easy to understand and without any hidden costs.
The other Group Companies:
• Lakshmi General Finance (since merged with SFL on 1/4/2005)
• Sundaram BNP Paribas Asset Management
• Sundaram BNP Paribas Home Finance
• Royal Sundaram Alliance Insurance
• Sundaram InfoTech Solutions
• Sundaram Business Services
• Sundaram Finance Distribution Limited
• In freight Logistics Solutions Limited
Products / Services Offered
• Deposits
• Car Finance
• Commercial Vehicle Finance
• Fleet Card
• Mutual Fund
• Life Insurance
• General Insurance
• Health Advisory
KEY EXECUTIVES
1 S Viji Chairman
New Delhi Institution Of Management Page 9
3 T T Srinivasaraghavan Managing Director
4 S Narayanan Director
5 T R Seshadri Director
6 S Ravindran Director
7 S Prasad Director
COMPETITORS
Shri ram
44402.30 587.70 -0.24 15.18 132536.82 614/282
Trans. Fin
Manappuram
1605.33 73.70 -0.41 20.95 25086.39 840/22
Gen Fin
Shriram City
9277.41 468.50 2.26 11.86 23044.17 557/322
Union
Cholamandala
10985.33 127.10 -1.09 90.65 13969.42 140/49
m Invest
Sigrun
0.01 20.00 4.99 0.00 10704.80 84/12
Holdings
SREI Infra
3222.70 79.85 -1.42 8.32 9274.16 94/45
Fin
India 117.3
66.13 40.15 -1.59 8012.59 41/2
Securities 7
Seagull Leaf
24.65 24.80 0.00 0.00 4344.41 0/0
in
Database
44.65 38.25 0.00 0.00 2039.99 0/0
Finance
MuthootCapit
170.42 144.95 -3.69 13.13 942.18 189/46
al
An asset or item that is purchased with the hope that it will generate income or appreciate in
the future.
PUR
POSE OF INVESTING
➢ Equities
➢ Bonds
➢ Mutual Funds
➢ Real Estate
➢ Gold ETF’s
➢ Commodities, Futures and Options
➢ Insurance
➢ Risk
➢ Market risk
What is a Bond?
A bond is an instrument in writing which gurentees to repay the principal of the plus
the interest to the bondholder.
Types of bonds
• Secured and unsecured loans.
Current Yield
Rate of return earned if the bond is purchased at
Coupon Interest
Current Market Price
House Ter Beurze in Bruges, Belgium, was one of the first stock exchanges
Investment Process
1. Get a Broker
2. Get a Demat Account
○ With banks, financial institutions, broking firms, NBFC, etc
Volatility
Opportunities-why to invest?
No worry on adulteration
Gold provides diversification to the portfolio
Gold is considered as a Global Asset Class
Gold is used as a Hedge against Inflation
Gold is considered to be less volatile compared to equities
Held in Electronic Form
Store of value
Extremely Liquid
Advantages
• Safety
Brings diversification and stability to a portfolio
Highly liquid and portable
Tool against inflation
Less regulatory intervention
Risks Involved
Are subject to market risks.
As with any investment in securities, the NAV of the units issued under the Scheme
can go up or down depending on the factors and forces affecting the Bullion Market,
Capital Market and Money Market.
COMMODITY MARKETS:
• Gold, Silver, Rubber, Pepper, Jute, Wheat, Sugar and cotton are a few popular
commodities.
• Commodity market represents a formal system for the interplay of demand for and
supply of commodities.
• These markets are classified into spot market and future market.
• Due to erratic weather changes and uncertain economic environment a commodity
shortage (or oversupply) in a particular season lead to increase (decrease) in the price
of the commodity.
• Farmers and merchant could not predict what the prices would be on a given day or
season.
• It was in this context, the farmers and food grains merchants in Chicago started
negotiating for future supplies of grains in exchange for cash at a mutually agreeable
price.
• Thus the farmer could lock in his price in advance thereby securing his income.
New Delhi Institution Of Management Page 27
• This effectively started the system of commodity market forward contract which
subsequently led to the development of future markets.
Sport Market & Future Market
Spot Market :
Commodities for immediate delivery are traded through the spot market.
➢ The players in the spot market are actual producers and the traders of the
commodity
Futures Market : facilitate contracts for future delivery of the underlying commodity
either through a physical delivery or a cash settlement ( net profit / net loss from the
transaction)
➢ The major players in the future markets are hedgers, speculators, arbitrageurs
and investors.
Forms of Commodity Derivative Products – Futures and Options.
➢ While a commodity future was reintroduced in India in 2003, commodity
options are yet to take off in the Indian markets.
Role of Commodity Futures Market:
It serves as a mechanism for price discovery either for the current price or to
determent expected future prices.
Price quoted for a commodity on the futures market is thought to be the best measure
of the actual price either current or future.
Commodity futures also help to hedge price risk and provide opportunities for
speculators.
Farmers can benefit from its price discovery mechanism to decide which crops to
grow.
It also enables businesses to hedge commodity and currency risk and help against
earnings volatility.
Concepts of Hedging:
In today’s dynamic environment stakeholders are exposed to price volatility
particularly if it involves a future transaction. Hedging plays an important role to
mitigate the risks of both parties in the transaction.
The growth of futures trading after that was stupendous and the
total turnover crossed Rs.50 lacks cores in 2008.
➢ The increasing awareness and popularity of commodity futures in India and the
slowdown in equity markets have contributed spectacularly to the turnover in the
market. The turnover of the MCX and NCDEX reached Rs.63, 62,603 crore for the
period January 2008 until March 2009.
Recent Developments
The economic survey for 2008-2009 has recommended certain reforms in the
commodity markets
1. Bring commodity future regulations under SEBI
• Since commodity futures are part of the financial market bringing all financial
market regulations under SEBI is better.
What is “Insurance”?
Insurance is a contract whereby, in return for the payment of premium by the insured,
the insurers pay the financial losses suffered by the insured as a result of the
occurrence of unforeseen events.
Commercial mechanism for transferring risk and spreading loss.
Mechanism….
Economic Concept of Insurance:
1. Insurer offers policy to cover specified risks
2. Insurer collects policy premiums from customers
3. Insurer invests premiums
4. Insurer pays money to insured customers in the event of losses covered by
policy.
Real Estate
Real estate is a legal term that encompasses land along with improvements to the
land, such as buildings, fences, wells and other site improvements that are fixed in
location – immovable
According to The Economist, “developed economies’” assets at the end of
2010 were the following:
Residential property: $108 trillion;
Commercial property: $84 trillion;
Equities: $40 trillion;
Government bonds: $45 trillion;
Corporate bonds: $31 trillion;
Total: $268 trillion.
That makes real estate assets 60% and financial assets 40% of total stocks,
bonds, and real estate assets. Assets not counted here are bank deposits,
insurance “reserve” assets, natural resources, and human assets. It is not clear if
all debt and equity investments are counted in the categories equities and
bonds.
BUSINESS SECTOR:
OPPORTUNITIES:
Three factors have contributed much to global real estate opportunities :
Rapid Economic Growth
Changing Demographics
Phenomenon of off-shoring
INVESTMENT PROCESS:
First, the Advisory Board determines the broader framework of the real estate
investment strategy and oversees the Investment Committee and Fund Management
team with annual reviews of portfolio performance and approval of large transactions
that are over a preset amount or percent of total portfolio.
Investment Committee oversees and approves Portfolio Setup framework, as well as
Asset and Portfolio Management operations. Within this context the Investment
Committee reviews semi-annually asset and portfolio performances, current and
projected, for the whole portfolio and by category, such as property type, location,
tenant industry etc.; reviews portfolio optimization recommendations and makes
decisions regarding changes in portfolio mix in terms of property types and locations
in order to maximize portfolio return prospects and minimize risk; sets and reviews
risk mitigation processes both at the portfolio and at the asset level. Ideally, portfolio
optimization recommendations should be based on the results of advanced portfolio
analysis using reliable return and risk projections by property type and location
(derived through advanced econometric and forecasting techniques) and modeling
frameworks that draw from the modern portfolio theory
The Implementation Committee executes the portfolio setup and structure, as
determined by the Advisory Board and the Investment Committee. The acquisition
department executes the portfolio build up process by screening properties available
in the market to identify those that fit the Fund’s investment strategy, performing
preliminary screening to select assets that will go through more detailed market
analysis and feasibility study, negotiating transaction terms and financial structuring,
Mutual Fund
Top 10 fund
Chapter - 4
scope
Company.
option.
A big boom has been witnessed in investment plan Industry in recent times. A
large number of new players have entered the market and trying to gain market
option” on the visiting customers of the SF Noida Branch. The study will help
investment, option for getting return and so on they prefer. This project report
Chapter – 5
Methodology
RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however primary data
data and providing an alternative solution to the problem .It also helps in
them for the better decision making both day to day decision and critical ones.
Data sources:
Research is totally based on primary data. Secondary data can be used only for
the reference. Research has been done by primary data collection, and primary
data has been collected by interacting with various people. The secondary data
Sampling:
Sampling procedure:
mathematical/Statistical tool.
Sample size:
responsive.
questionnaire.
India, Noida Branch, and New Delhi out of these only 120 had
Data
Analysis
&
Interpretation
No. of 12 18 30 24 20 16
Interpretation:
are in the age group of 36-40 yrs. i.e. 25%, the second most
investors are in the age group of 41-45yrs i.e. 20% and the
Educational Number of
Qualification Investors
Graduate/ Post 88
Graduate
Under Graduate 25
Others 7
Total 120
Interpretation:
Occupation No. of
Investors
Govt. Service 30
Pvt. Service 45
Business 35
Agriculture 4
Others 6
Interpretation:
Interpretation:
In the Income Group of the investors of Delhi, out of 120
Responden
ts
Interpretation:
High Return, 30% prefer to invest where there is Low Risk, 20%
Interpretation:
From the above chart it is inferred that 67% People are aware
of investment plan and its operations and 33% are not aware of
investment plan
Source of No. of
information Respondents
Advertisement 18
Peer Group 25
Bank 30
Financial Advisors 62
Reason No. of
Respondents
Not Aware 65
Higher Risk 5
Not any Specific 10
Reason
Interpretation:
Out of 80 people, who have not invested in any plan, 81% are
not aware of it, 13% said there is likely to be higher risk and
Respondents
Not Aware 25
Less Return 18
Agent’s Advice 22
Interpretation:
Out of 65 people who have not invested in SF, 38% were not
aware with SFMF, 28% do not have invested due to less return
(SIP)
No. of Respondents 78 42
Interpretation:
Debt 20
Balanced 44
Interpretation:
Payout Reinvestme h
nt
No. of 25 10 8
Respondents 5
Interpretation:
Reinvestment Option.
Chapter – 7
New Delhi Institution Of Management Page 59
Findings and
Conclusion
Findings
below 30 years.
group of more than Rs.30, 000 and the least were in the
Conclusion
and also the psyche of the small oaf all plan investors in
invested in any plan. They think their money will not be secure
also growing.
known with them. There are many AMCs in Delhi but only some
Reliance, UTI, SBI, ICICI Prudential etc. they are well known
New Delhi Institution Of Management Page 62
Brand, they are performing well and their Assets Under
entry load. Only those people invest directly who know well
Suggestions
And
Recommendations
option could offer. But most of the people are not even
the investors.
BIBLIOGRAPHY
• www.sbimf.com
• www.moneycontrol.com
• www.licindia.com
• www.sundaramfinance.com
• www.amfiindia.com
• www.onlinesearchonline.com
• www.mutualfundsindia.com
QUESTIONAIRE
b) Television
c) General/business newspaper
d) Brokers/agents/professional consultant
Equity
Dept
b) In constant market
c) In declining market
a) Yes b) No
New Delhi Institution Of Management Page 68
8. Do you invest in equity diversified fund?
a) Yes b) No
a) Reliance b) Sundram
a) Yes b) No
11. Which would you prefer among the following fund type?
a) Yes b) No
Name:-...............................................................................
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Age:-................................................................................
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Occupation:-.......................................................................
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Contact
no:-............................................................................................
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Address:-............................................................................
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