A REPORT ON SUMMER TRAINING / PROJECT WORK On JM Financial Pvt. Ltd. Baroda Submitted to INDUKAKA IPCOWALAINSTITUTE OF MANAGEMENT (IIIM)CHANGA (CHAROTAR UNIVSRSITY OF SCINCE AND TECHNOLOGY) PREPARED BY LOKESH BHATIYA 09 MBA 02 JULY 2010 UNDER THE GUIDANCE OF Mrs. Vaishali Shah DECLARATION I, Lokesh Bhatiya, student of MBA programme at Indukaka Ipcowala Institute of Management (IIIM), Charusat University of Science and Technology, Changa, hereby declare that the report of summer training and project work entitled “A Study on Risk and Investment Behavior of Investors, Baroda City and awareness of Mutual fund” is the result of my own work.
I also acknowledge the other works/publicationscited in the report. Place: Changa Date: 15 JULY 2010Signature ACKNOWLEDGEMENT Sometimes words fall short to show gratitude, the same happened with me during this project. The immense help and support received from J. M. Financial management Pvt. Ltd. overwhelmed me during the project. My sincere gratitude to Mr. Ghanshyam Vyas (Branch head JM Financial Pvt. Ltd. , Baroda) whose co-operation and guidance proved immensely helpful to me during the course of summer training. I am also very thankful to Mr. Jignesh Mochi, Mr.
Mulik for their guidance & support during the summer training & summer project. I am very grateful to the G. Krishnamurthi (Principal) for allowing us to take my training from such a reputed organisation. I am thankful to Mrs. Vaishali Shah for helping me in every related aspect of training & project. I also very thankful to Mr. Govind Dave for providing their valuable reference in arranging the summer training in such a reputed organization. I also wish to acknowledge my sincere thanks to the entire concern faculty for their valuable advice and suggestions.
Last but not the least; my heartfelt love for my parents, whose constant support and blessings helped me throughout this project. TABLE OF CONTENTS Sr. No. ParticularPage Number PART 1 –ORGANISATIONAL PROFILE 1Introduction 2The company a. •History b. •Mission & Vision c. •Management structure d. •Products 3Functional area a. •Market & Marketing b. •Production/Operation c. •Human resitsce d. •Finance & Account 4Decision making a. •Strategic decision area & Decision making process b. •Tactical and Operational decision area & Decision making process c. Formal & Informal power relations 5Financial Analysis a. •Profitability of the firm of last 4 years b. •Asset built up in the last 4 years c. •Key financial ratio & interpretation d. •Financial health & future of the organization 6. My learning from the study of organization PART 2-Project Study 7. Overview of the Project a. •Background of the study •Objective of Study 8. Research Methodology 9. Data analysis, Finding & Interpretation 10. Limitation 11. Appendices 13References INTRODUTION JM Financial group
JM Financial is an integrated financial services group offering wide range of capital market service to its corporate and individual clients. The Group has business interest in investment banking, institutional equity sale & broking, private & corporate wealth management, research, equity broking, portfolio management, asset management, commodity broking etc. JM Financial service private limited JM Financial service private limited is a private sector organization. The Register & Corporate office of this organization is in Mumbai and the branch office of JM Financial is 22 cities in India.
JM Financial private limited (JM Financial Services) is a full service wealth management and equity broking firm with a focus on capital markets. JM Financial services offers research-based instrument advisory and equity trading services to high net worth individuals and corporate investors across wide range of financial product. Their domestic research capabilities, capital market expertise and an exclusive level of personal attention enable them to design and execute customized investment strategies for their clients.
JM Financial service private limited provide full time service in Private Wealth Group advising high net worth individuals Corporate wealth Group advising top 500 Corporate Treasuries Secondary Broking- Equity and derivatives Depository services Portfolio Management Service Distribution of ?Mutual Funds – deft and equity ?Equity IPO’s ?Fixed income product ?Real estate funds ?Private equity ?Venture capital fund ?Structured Product THE COMPANY Evolution & History JM Financial Limited was started in 1986 by JM Financial & Investment Consultancy Services Private Limited ( JM FICS) to engage in the business of stock broking and securities.
JM Financial & JM FICS sponsored one of India’s first private sector mutual fund viz. JM mutual fund, JM financial mutual fund made a simultaneous launch of three open ended funds in December, 1994. The trustee of this fund is JM Financial Asset Management Pvt. Ltd. JM Financial Group subsequently entered into in equity partnership with Morgan Stanley in 1999. Morgan Staley is one of the world’s leading financial service firms with approximately 45,000 employees in 390 offices across 23 countries worldwide. Morgan Stanley has a presence is almost every financial market.
The partnership led to setting up of two joint venture companies, JM Morgan Stanley Private Limited, with interest in the area of investment banking, retail distribution, private wealth management and fixed income securities and JM Morgan Stanley Securities Private Limited with operations in institutional equity sales and trading. While JM Financial holds 51% of JM Morgan Stanley private limited with 49% being held by Morgan Stanley. JM Morgan Stanley private limited operates in the area of retail distribution and fixed income sales & trading through two wholly owned subsidiaries viz. JM Morgan Stanley Financial Service Private Limited and JM Morgan Stanley Fixed Income Securities Private Limited. JM Financial Limited has approved the merger of JM Securities Private Limited, a JM Financial group of company itself. This merger is subject to satisfactory receipts of all statutory, regulatory, corporate and other approvals as may be required, including but not limited to, approval of relevant high court, Reserve Bank of India, Stock Exchange, Securities Exchange Board of India, and share holders.
After the proposed merger JM Financial will expand its interest in equity broking, investment banking, retail & fixed income broking, asset management, commodities broking and equity financing business. JM Financial group is an integrated financial service group offering the entire range of financial services to its corporate and individual client like ?Investment banking ?New offer document ?Investment Advisory Services ?Fixed Income Broking ?Assent Management ?Commodities Broking ?Private equity ? VISION STATEMENT “To be the most trusted partner for every stakeholder in the financial world. ” MISSION STATEMENT
Earning trust is a process (it can be gained and lost every day! ) Sharing trust creates great teams (whether between employees or between organizations) Being trustworthy is the most efficient way of generating and retaining long-term business Self–trust is the starting point of trusting others MANAGEMENT STRECTURE of J M GROUP JM FINANCIAL is a private company and the offices are spread over the country. J M FINANCIAL has many branches in India. its structure is discussed as follow with the management hierarchy. MANAGEMENT STRUCTURE OF J M FINANCIAL SERVICES PVT. LTD. PRODUCTS Primary Market: ?IPO Offering – Debt and Equity Mutual Fund – Debt and Equity Secondary Market: ?Equity Advisory and Broking ?Fixed Income Advisory & Execution ?Future & Option Advisory & Broking ?Buybacks ?Block Trade Sales Services ?Customized investment advisory and asset allocation of portfolio ? Portfolio Tracking for Mutual Funds ?Portfolio Tracking for Secondary Equity MILESTONES YearName of Award Details 2008Outlook Money NDTV Profit AwardsBest Merchant Banker – Runners Up 2007Finance Asia Achievement AwardsBest India Deal – for Vodafone’s $12 billion acquisition of HTIL 2007Finance Asia Achievement AwardsBest Secondary Offering – for ICICI’s $4. billion simultaneous follow-on of ADRs and domestic shares 2007The Asset Triple A Regional AwardBest Follow-on Offering – for ICICI’s $4. 6 billion simultaneous follow-on of ADRs and domestic shares 2007ICRA Mutual Funds AwardsOpen Ended Sectoral–Healthcare-1 year performance (till 31. 12. 2006), Gold – JM Healthcare Sector Fund 2006CNBC TV18 – CRISIL Mutual Fund Awards EuroMoney Awards of ExcellenceFloating Rate Plan – JM Floater Short Term Plan Best M&A House, India 2005Finance Asia Finance AsiaBest Follow-on Offering – ICICI Bank USD1. 75 billion concurrent ADR and domestic share sale
Best India Deal – Reliance Industries USD 4. 8 billion restructuring 2004Finance Asia Asset Asian Awards Asia Money Asia Money Asia MoneyBest India Deal – USD 1. 2 billion Tata Consultancy Services IPO Best Privatizations – USD 2. 4 billion ONGC follow-on offering Best Deal in India – OIL & Natural Gas Corporation Best Overall Strategy – Brokers Best Overall Macroeconomics – Brokers 2002Crisil Best Fund AwardsBest Performing Open-end Debt Scheme – JM Income Fund 2001Crisil Best Fund AwardsBest Performing Open-end Debt Scheme – JM Income Fund Business segment of JM Financial service Private wealth Group
Private Wealth Group (PWG) is a personalized investment advisory service for high net worth individual with an investible surplus in excess of USD 1 mn. (Rs 5 crore) with dedicated wealth managers for managing the client’s wealth. PWG segment draws upon the full spectrum of firm resources & expertise in capital markets for generating investment ideas and developing customized investment solution for meeting their client’s financial goal. Corporate wealth group Corporate Wealth Group (CWG) at JM Financial provides research-based investment advisory service to top 500 corporate treasuries for deployment of surplus funds.
A dedicated investment advisor supported by research and product team is assigned to each corporate client. Equity Brokerage Group Equity Brokerage group (EBG) offers trading and research-based equity advisory services to high net worth individuals, retail clients and corporates. This group focuses on generating wealth for the client through stoke ideas and trading strategies based on a combination of fundamental and research analysis. Equity Brokerage Group distinguishes itself from others by focusing on providing customized investment solutions and brokerage services to various client segments. Independent Financial Advisor Group
JM Financial service has developed one of the largest networks of distribution of financial product to retail investors through Independent Financial Advisors (IFA). JM Financial Group’s expertise in capital market and strong investment banking franchise, helps them in launching public issues of companies with strong fundamental and creditable promoter background for generating their clients. Main Services Target market Target market of JM Financial is all those who wants to invest either in fixed deposit or wants to invest in share market. JM financial also help the person who wants to take expert advice.
So the JM financial target market is as follow ?Broker ?Sub-broker ?Local agent ?Individual investor ?Senior citizen ?Conservative investor ?Aggressive investor Market share of JMFS Approximately JMFS captures 20% of total market share of overall broking but the brighter part is that its market share is increasing year by year. Competitors of JMFS Reliance Capital Kotak Karvy Shri Global traders Bajaj Holding Local broker Distribution channel JMFS wants to reach deep in the market. It has very good link with sub broker. So by sub broker chain company tries to reach its target market. Promotional measure
Company uses all possible source of promotional measure to reach its target market. The promotional measure includes Advertisement Sale promotion Publicity Development of franchise Development of sub broker Measure of customer satisfaction taken by the company JMFS uses very simple technique to know customer satisfaction. Company use ? Feedback from filling ?Direct contact with customer ?Provide some addition service ?Help in tax panning etc. ?Try to advice the customer the satisfy customer financial need Functions of time office Office timing Monday to Friday9. 00 AM to 6. 30 PM Saturday10. 30 AM to 2. 0 Attendance system Attendance system in J M financial is very simple. All the employ has to sign in the register when they come & when they go out. In this way they record in time & out time of any employ. Critical working hour Critical working hour in the organization is the trading time in the stock market i. e. 9:00 AM to 3:30 PM. Discipline JM Financial is very particular about in & out time of an employ. So all the employees have to follow strict time schedule of the organization. Human resource planning Whenever there is requirement of manpower each & every branch send there need to Head office.
The branch also describes the job where the person is required. The brief job description is also given by the branch office. Base on the Requirement of the branch the head office takes the responsibility overall human resource planning. The HRP of the JM financial includes number of person require, type of person required, number of person require in each & every branch, source of recruitment whether it is eternal or external source & so on. Process of HRP Recruitment & Selection After HRP recruitment and selection process starts. Head office provides power to the branch head for recruitment & selection at junior level.
Branch head specify the requirement like skill, education, experience etc. After that though interview recruitment & selection process done. At senior management level recruitment & selection is Completed through head office. JM Financial generally use advertisement etc. to generate the application. After screening the application, some written test & interview is use for final selection. Level Source of recruitment Selection method Selection at Junior management Level Internal source mainly though reference Interview Branch level Senior management Level External source mainly though advertisement Interview
Head office level Performance appraisal system at different level JM Financial use a very systematic technique of performance appraisal. JM financial uses computer software to appraise the performance. The name of the computer software is “ADDRENI”. This software is base on the key performance area (KPA). The attribute of KPA are different position to position & department to department. So the software lists all the KPA and give the weight age according to their importance. The final quantitative result comes accordingly. Levels Types of Performance appraisal Junior management Level 1800 Performance Appraisal