Chapter No Particulars Page No

1 Section 1

DESCRIPTION OF THE COMPANY

I. Number of employees

II. Divisions of the company

III. Main functions of the company

IV. Administrative structure

Section 2

BUSINESS MODEL CANVAS TOOL

2 INTRODUCTION

1. Scopes/objectives/Needs for the study

2. Purpose of the summer internship
3. Reasons for choosing the location and company
4. General information regarding the nature of work carried out.

3 PROBLEM STATEMEN

1. Problem
2. Solution

4 OUTCOMES OF THE IIP

1. Summer internship activities

2. Observations

3. Contributions.

5 EXPERIENTIAL LEARNING AND CONCLUSION OF THE IIP

AND INTELLECTUALBENEFITS

 Experiential learning

 Conclusion

 Intellectualbenefits
6 BIBLIOGRAPHY

1
 CHAPTER 01

DESCRIPTION OF THE COMPANY

2
CHAPTER 01

DESCRIPTION OF THE COMPANY

NJ GROUP – “We are BUILT ON TRUST”.

COMPANY HISTORY:

NJ Group is a leading player in the Indian financial services industry known for its strong
distribution capabilities. Mr. Neeraj Choksi (L) & Mr. Jignesh Desai (R) are two first
generation entrepreneurs who began the journey of 'NJ' in 1994 with the establishment of NJ
India Invest Pvt Ltd

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Build on trust:

An evolving, emerging & enterprising group with its roots in the financial services sector
and today expanding into newer horizons with great passion.

The vision of the group is to be leaders in businesses driven by customer satisfaction,

commitment to excellence and passion for continued value creation for all stakeholders. This
vision has helped us grow and build the trust of our customers and associates which is at the
cornerstone of everything we do. Trust is also at the heart of our success and the driver for
passion for our success.

NJ Group is a leading player in the Indian financial services industry known for its strong
distribution capabilities. The journey of NJ began in 1994 with the establishment of NJ India
Invest Pvt Ltd., the flagship company, to cater to investor needs in the financial services
industry. Today, the NJ Wealth Distributor Network, earlier known as the NJ Funds
Network, started in 2003 is among the largest networks of financial products distributor in
India.

Over the years, NJ Group has diversified into other businesses and today has the presence in
businesses ranging from financial products distributor network, asset management, real
estate, insurance broking, training & development and technology. Our rich experience in
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financial services, combined with executional capabilities and strong process & system
orientation, has enabled us to shape a rising growth trajectory in our businesses.

NJ Group is based out of Surat in Gujarat (India) and has presence in 95+ locations in India
and has over 1475+ employees.

Work Philosophy:

Doing the 'right' thing is a virtue most desirable. The difference between success and failure
is often, not dictated by knowledge or expertise, but by its actual application and
perseverance.

When it comes to value creation for customers, it is something that we strongly strive for in
all our endeavours. We are committed to provide our customers with continuous, long-term
improvements and value-additions to meet their expectations. Driven by passion, we
continue to evolve and make the right product accessions and service innovations in our
offerings. Over the years, our passion has seen us grow from strength to strength and expand
rapidly, setting new benchmarks in the process. But to us, what really matters the most is
winning the trust of our customers.

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Corporate Governance:

NJ realises the importance of corporate governance and seeks to implement the best
practices for the same. We strongly believe that we have an obligation or duty as corporate
entities to all our stakeholders; from employees, customers and vendors to business partners,
authorities, and society at large. We aim to strike the right balance between minimising
business risks while attempting to maximise business growth

 Corporate Governance at NJ is based on the following main principles:

 Timely and strict compliance to all established rules, regulations and guidelines

 Building sound system of risk management and internal control.

 Timely and balanced disclosure and communication of all material information to all
stakeholders.

 Transparency and accountability in all practices

 Fair and equitable treatment of all its stakeholders including employees, associates,
customers & community

VISION:

 To be the leader in our field of business through

 Total Customer Satisfaction

 Commitment to Excellence
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 Determination to Succeed with strict adherence to compliance

 Successful Wealth Creation of our Customer

MISSION:

Ensure creation of the desired value for our customers, employees and associates, through
constant improvement, innovation and commitment to service & quality. To provide
solutions which meet expectations and maintain high professional & ethical standards along
with the adherence to the service commitments.

SWOT ANALYSIS OF NJ:

Swot analysis is a study which is undertaken by an organisation to identify its internal

strength and weaknesses, as well as its external opportunity and threats related to business
competition or project planning.

 Strength:

 NJ Investment is the dominant player in the Indian Mutual Funds distribution business
with over decades of experience.

 NJ Investment has given a very good research support to the advisors

 NJ Investment is top in National Distributors

 Weakness:
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 The first and the foremost lacking element in the company is that the awareness about
company is very less in the market.

 NJ funds is only dominant in Mutual Funds and they also focuses on other Financial
Instruments

 Opportunities:

 They have very wide scope in financial sectors.

 Increase the number of advisors

 Threats:

 High market competition

 Need to compete even with the banking channels

PRODUCT BASKET:

Product Basket The following is broadly the product basket available to NJ Wealth Partner
on eligibility / registration basis. The NJ Wealth Distributors can engage in active
distribution of the following products to their client through NJ

 Mutual Funds:

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NJ has tie-ups with all Asset Management Companies (AMCs) and all mutual funds
schemes are part of the product basket. Eligible Partners can offer any mutual fund scheme
to their client from day one of their association with NJ. The customers have a single
window access to any mutual fund product / scheme they would like to access.

 Capital Market:

Direct Equity & ETFs — NJ is a SEBI registered member for NSE & BSE and capital
markets. Clients of NJ E-Wealth A/c service have access to capital market products of direct
equity stocks and Exchange Traded Funds (ETFs). One can undertake transaction online or
through Call & Transact facility.

 Fixed Income:

NJ has also entered into tie-ups with leading companies/ institutions for distribution of fixed
income products, namely Non-Convertible Debentures, Infrastructure / RBI Bonds,
Company Deposits, etc. The availability of fixed income products in addition to mutual
funds, makes the product basket even more attractive.

 Portfolio Management Services (PMS):

NJ has its own PMS offerings with NJ Advisory Services Pvt. Ltd., a group company, being
a PMS service provider. The existing strategies have mutual funds as the underlying, one of
very few in the industry. In addition to this, PMS products by other leading PMS service
providers also regularly form a part of the product basket with Partners. Clients can

9
subscribe to the PMS products of NJ / other providers through their Partners. Access to NJ
PMS products are exclusively available for NJ Partners only.

 Real Estate:

In addition to the investment products, NJ Partners and clients also have access to the real
estate properties across India. NJ regularly enters into tie-ups with leading developers in
India for distribution of their products. In addition to this, exclusive projects handled by NJ
Realty are available to clients only through eligible NJ Partners. The exclusive projects are
those where NJ Realty is actively engaged in project management, execution and/or
distribution.

COMPETITORS:

1. Karvy Private Wealth is NJ Wealth's top competitor. Karvy Private Wealth is

headquartered in Mumbai, Maharashtra, and was founded in 2010. Karvy Private Wealth is
in the Asset & Investment Management field. Karvy Private Wealth generates 33% the
revenue of NJ Wealth.

2. JM Financial is seen as one of NJ Wealth's top competitors. JM Financials headquarters

is in Mumbai, Maharashtra, and was founded in 1973. JM Financial competes in the
Consumer Finance & Credit Cards industry. JM Financial generates 12,167% of NJ Wealth's
revenue.

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3. Sharekhan has been one of NJ Wealth's top competitors. Sharekhan was founded in
2000, and its headquarters is in Mumbai, Maharashtra. Sharekhan competes in the
Diversified Financial Services field. Sharekhan has 5,459 more employees than NJ Wealth.

Why Nj?

1. Working Environment:

Enthusiasm, Enterprise, Education and Ethics form the four pillars at NJ. At NJ one can
witness the vibrant energy, enthusiasm and the enterprising drive to excel flowing freely
throughout the organisation, which comprises of a young and dynamic team. Aggression to
work and passion to succeed go hand in hand here. At NJ can also

experience the creativity, one-to-one responsiveness, collaborative approach and passion for
delivering value.

At NJ, we value our people. We are in the business of Financial Products and Real Estate
Products distribution through our wide web of Partners. Trust and goodwill form the
fundamental basis of our relationships. This not only demands thorough professional
knowledge and an enchanting personality, but also calls for a missionary zeal to help others.

NJ people evolve to be more effective, efficient, and result oriented. Knowledge is inherent
due to the education-centric approach and the experience in handling different client’s
groups across diverse product profiles.

NJ understands that the people are the most important assets of the company and it is not the
company that grows but the people. NJ hence undertakes rigorous training and educational
activities for enhancing the entire team at NJ. NJ also believes in the 'Learning through
Responsibility' concept for its employees.

For people at NJ success is not a new word, but is a regular stepping-stone to realising the
one vision that everyone shares.

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2. Nurturing Talents:

NJ nurtures the talent in people and enables them to grow to their full potential by offering
opportunities which enable young professionals to hone their skills and shape their career. It
provides various platforms for developing multiple skills, exposure to best practices backed
with appropriate training and development inputs for employees to excel

NJ offers employees an ideal environment to progress their careers and enhance their skills.
The atmosphere is that of knowledge generation and sharing. High corporate standards
require matching talent to meet the organizational goals and aspirations. We aim to provide
employees with an invigorating and professional work environment based on respect,
openness and trust. Excellence, Speed, Responsibility & Commitment are some of the
virtues that we expect from our employees.

We have a culture, wherein employees are encouraged to be innovative and responsible.

Every employee enjoys freedom to work within broadly defined boundaries. There is a
supportive, healthy work culture where everyone is treated equally.

The atmosphere is friendly, and the management is always around to share the happiness
and grief of every team member.

3. Working with NJ:

Various reasons account for making working with NJ a satisfying and enjoyable experience.

 Professional growth:

Performance is the key element that matters at NJ, when it comes to rising up the corporate
ladder. NJ has a transparent policy of recognising and rewarding deserving people. Many of
those who occupy top positions in the

organisation today have worked their way up. Our performance management systems ensure
that the credit goes to those who deserve it.

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 Personal growth:

Qualities like leadership, communication skills, negotiating skills and an impressive

personality get developed automatically, largely due to the contagiously professional
atmosphere and rigorous training programmes at NJ.

 Job satisfaction:

A true spirit of philanthropy is at the heart of everything that we do. Our efforts are aimed at
genuinely helping people. It obviously feels great to know that you've been of help to
someone.

 Endless opportunities:

We lay a lot of emphasis on continuing education. Every team member is encouraged to

undergo professional training. Skill-building workshops and meets are also organised from
time to time. We offer leadership programs, management training, and team building
opportunities to further encourage professional growth. Specially designed English
Communication programmes are provided to employees.

 Value-driven organisation:

NJ is today a respected name, primarily due to the strict adherence to values such as honesty
and ethics. Qualities of sincerity, fair play, leadership and initiative are strongly encouraged.

 Recognition:

Every employee is given a chance to excel, and the efforts of every performer are
recognised. NJ ensures that all employees are adequately rewarded for the efforts put in. We
regularly organise trips to various exotic locations in India and abroad for our top
performers.

NJ Advantages:

The following are the reasons, which we believe enable NJ Wealth offer added advantage to
associated NJ Partners and their customers.

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1. Strong lineage and commitment to the business:

Since its birth in 1994, NJ Group has grown into a diversified business group in the last 21
years. The business of financial products distribution is the flagship business of the group
and it remains at the heart of NJ Group. The management and team at NJ share a very strong
vision for the business and are committed to further strengthen and expand. NJ Wealth also
gets complemented and benefited with the growing presence of NJ Group in other
businesses.

2. Customer Centric Approach:

The work culture of NJ Wealth is geared towards helping customers win with solutions
covering all critical areas of success. Be it NJ Wealth Partners or their customers,

NJ's continuous focus has been to design, deliver and enrich our value-proposition in areas
of product & service offerings, operational excellence, service quality, technology,
governance and more. The business and wealth management ideas and strategies propagated
at NJ are also centred around sound, proven principles that serve the best interests of the
customers. With the continued trust of our customers, we are confident to steadfastly
maintain the course of building strong customer relationships and experience.

3. Effective use of technology:

At NJ we have constantly tried to see technology as an enabler to meaningfully deliver the

most critical and relevant needs first. With our rich experience, understanding and an in-
house team we have custom built our entire platform to match customer needs. Our
integrated technology setup covers a gamut of business areas including customer offerings
like online desks to the critical operations processes and all areas of business management.
NJ also has adapted global standards and best practices in information security, customer
privacy and network, infrastructure management. The effective use of technology has helped
us to manage the business growth and deliver solutions in a reliable, effective and secured
fashion.

4. Controls through well-defined processes:

NJ Wealth takes governance, compliance and risk management as equally important

business areas in addition to customer solutions and operational excellence. The culture at
NJ has evolved over the years to be strong policy, process and systems oriented. We have
14
 put strong internal controls and monitoring mechanisms in place on one hand, while
removed people dependency and automised processes on the other. We continue to evolve
our controls and processes to mitigate business risks, offer standard services, enhance
productivity and improve customer experience and satisfaction.

5. Access to multiple products, single window solutions:

NJ provides easy access to a wide range of financial and non-financial products in diverse
asset classes. The products are available to the customers of NJ Partners. The product basket
available includes all mutual funds schemes; direct equity, ETFs, PMS and fixed income
products like banks, NCDs, Company Deposits, and real estate properties. In addition to
products, NJ also offers the services of D-mat and Trading account with online and Call &
Transact facility and also mobile trading service in mutual funds. The product & service
basket is enough to meet the needs and build the entire portfolio for any retail, HNI or
corporate client.

6. Wide reach across India:

Access to NJ branch is never very far with presence at 94 branches in 21 states. Further,
internal systems at NJ provide the freedom for any Partner and/or Client to transact from
across all the branches of NJ. Clients can also approach NJ for any assistance/transaction in
absence of their Partners at any of our branches.

LOCATION SPREAD OF THE COMPANY:

NJ Group has a significant presence in Bengaluru, Karnataka, with multiple branches and service
centers spread across various locations in the city. Some of the key areas where NJ Group branches
can be found in Bengaluru include:

1. Jayanagar

2. Indiranagar

3. Koramangala

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4. Malleshwaram

5. Rajajinagar

6. Electronic City

7. Marathahalli

8. Whitefield

9. BTM Layout

10. Yelahanka

These branches cater to the diverse financial needs of the residents and businesses in Bengaluru,
offering services such as gold loans, microfinance, personal loans, insurance, and other financial
products.

NUMBER OF EMPLOYEES:

If NJ Group has 120 employees, dividing the workflow efficiently among them can ensure optimal
productivity and smooth operations. Here's a suggested breakdown:

1. Branch Operations (40 employees):

- Branch Managers (5): Responsible for overall branch management, including staff supervision,
customer service, and target achievement.

- Customer Service Executives (15): Assisting customers with inquiries, loan processing, and
document verification.

- Loan Officers (10): Evaluating loan applications, conducting customer interviews, and ensuring
compliance with lending policies.

- Sales Executives (10): Promoting financial products, acquiring new customers, and achieving
sales targets.

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2. Back Office Support (20 employees):

- Administrative Staff (5): Handling administrative tasks such as data entry, record keeping, and
office maintenance.

- Accounts Executives (5): Managing financial transactions, reconciling accounts, and preparing
financial reports.

- IT Support (5): Providing technical assistance, troubleshooting software/hardware issues, and

maintaining IT infrastructure.

- Human Resources (5): Managing employee relations, recruitment, payroll processing, and
training programs.

3. Risk and Compliance (10 employees):

- Risk Managers (3): Identifying potential risks, developing risk mitigation strategies, and ensuring
compliance with regulatory requirements.

- Compliance Officers (5): Monitoring adherence to legal and regulatory standards, conducting
audits, and implementing compliance policies.

- Legal Advisors (2): Providing legal guidance, drafting contracts/agreements, and handling legal
disputes.

4. Sales and Marketing (20 employees):

- Marketing Executives (8): Developing marketing campaigns, advertising strategies, and

promotional activities to attract customers.

- Digital Marketing Specialists (4): Managing online marketing channels, social media platforms,
and digital advertising campaigns.

- Sales Managers (4): Leading sales teams, setting sales targets, and implementing sales strategies
to achieve revenue goals.

- Relationship Managers (4): Building and maintaining relationships with existing customers,
addressing their needs, and fostering customer loyalty.

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5. Training and Development (10 employees):

- Training Managers (2): Designing training programs, conducting training sessions, and assessing
employee performance.

- Training Coordinators (4): Assisting in the coordination of training activities, scheduling sessions,
and managing training resources.

- Content Developers (4): Creating training materials, manuals, and e-learning modules to support
employee development initiatives.

This distribution allows for a balanced allocation of responsibilities across different functional areas,
ensuring efficient workflow management and optimal utilization of human resources within NJ
Group.

DIVISION OF THE COMPANY

Based on the typical organizational structure of financial institutions like NJ Group, the company
can be divided into several key divisions to streamline operations and maximize efficiency. Here's a
suggested division of the company:

1. Retail Finance Division:

- This division handles retail lending activities such as gold loans, microfinance, personal loans,
and other consumer finance products.

- Responsibilities include loan origination, customer service, loan disbursement, and collections.

2. Corporate Finance Division:

- This division focuses on providing financial services to corporate clients, including SMEs (Small
and Medium Enterprises) and larger corporations.

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 - Services may include working capital loans, trade finance, project financing, and other corporate
lending solutions.

3. Risk Management Division:

- Responsible for identifying, assessing, and mitigating various types of risks faced by the
company, including credit risk, market risk, operational risk, and regulatory compliance risk.

- Develops risk management policies, procedures, and controls to safeguard the company's assets
and reputation.

4. Compliance and Legal Division:

- Ensures that the company operates in compliance with relevant laws, regulations, and industry
standards.

- Handles regulatory filings, audits, and legal matters such as contract review, dispute resolution,
and litigation management.

5. Operations Division:

- Manages the day-to-day operational activities of the company, including branch operations, back-
office functions, customer service, and IT infrastructure.

- Focuses on process optimization, efficiency improvements, and technology integration to enhance

operational effectiveness.

6. Sales and Marketing Division:

- Responsible for developing and implementing sales strategies to acquire new customers and grow
the company's customer base.

- Manages marketing campaigns, branding initiatives, advertising, and promotional activities to

increase brand visibility and market share.

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7. Human Resources Division:

- Oversees all aspects of human resource management, including recruitment, employee relations,
performance management, training and development, and compensation and benefits.

- Ensures that the company attracts, retains, and develops top talent to support its business
objectives.

8. Finance and Accounting Division:

- Manages the company's financial resources, including budgeting, financial planning, treasury
management, and financial reporting.

- Handles accounting functions such as accounts payable, accounts receivable, general ledger, and
financial analysis.

9. Internal Audit Division:

- Conducts independent audits and reviews of the company's operations, processes, and controls to
identify areas of improvement and ensure compliance with internal policies and procedures.

- Reports findings and recommendations to senior management and the board of directors to
support informed decision-making.

By dividing the company into these key divisions, NJ Group can effectively manage its operations,
mitigate risks, ensure regulatory compliance, and drive business growth across different segments of
the financial services industry.

MAIN FUNCTIONS OF THE COMPANY:

The main functions of NJ Group Pvt. Ltd. encompass a range of activities aimed at providing
financial services and solutions to its customers while ensuring operational efficiency, regulatory
compliance, and sustainable growth. Here are the main functions of the company:

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1. Financial Services Provision:

- Offering a diverse range of financial products and services to meet the needs of individual
customers, small businesses, and corporate clients.

- Providing services such as gold loans, microfinance, personal loans, business loans, vehicle loans,
insurance products, and investment options.

2. Customer Relationship Management:

- Building and maintaining strong relationships with customers by understanding their financial
needs and providing personalized solutions.

- Ensuring excellent customer service at all touchpoints, including branches, online platforms, and
customer support channels.

3. Risk Management:

- Identifying, assessing, and managing various types of risks, including credit risk, market risk,
operational risk, and regulatory compliance risk.

- Implementing risk management strategies, policies, and controls to protect the company's assets
and reputation.

4. Compliance and Regulatory Affairs:

- Ensuring compliance with relevant laws, regulations, and industry standards governing the
financial services sector.

- Conducting regular audits, reviews, and assessments to ensure adherence to internal policies and
external regulatory requirements.

5. Operational Management:

- Overseeing the day-to-day operations of the company, including branch operations, back-office
functions, and IT infrastructure.
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 - Optimizing operational processes, workflows, and systems to enhance efficiency, productivity,
and customer satisfaction.

6. Sales and Marketing:

- Developing and implementing sales strategies to acquire new customers, expand market reach,
and increase product penetration.

- Conducting marketing campaigns, branding initiatives, and promotional activities to raise

awareness and drive customer engagement.

7. Human Resource Management:

- Recruiting, training, and developing a talented workforce to support the company's business
objectives and growth plans.

- Fostering a positive work culture, employee engagement, and professional development

opportunities.

8. Financial Management:

- Managing the company's financial resources, including budgeting, financial planning, treasury
management, and financial reporting.

- Ensuring proper accounting practices, financial transparency, and sound fiscal management to
support sustainable growth and profitability.

9. Technology and Innovation:

- Leveraging technology and innovation to enhance service delivery, streamline processes, and
offer digital solutions to customers.

- Investing in digital platforms, mobile apps, and online banking services to provide convenient and
accessible financial services.

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By fulfilling these key functions effectively, NJ Group Pvt. Ltd. aims to become a trusted and
preferred financial services provider, delivering value to its customers, employees, shareholders, and
communities.

ADMINISTRATIVE STRUCTURE:

1. Chief Executive Officer (CEO): Provides overall leadership, vision, and strategic
direction for the company, overseeing all divisions and functions to ensure
organizational success and growth.

2. Chief Operating Officer (COO): Responsible for day-to-day operations and execution
of strategic initiatives, optimizing efficiency, productivity, and performance across
all departments.

3. Chief Marketing Officer (CMO): Leads the marketing and branding efforts,
developing and implementing marketing strategies to drive brand awareness,
engagement, and sales growth.

4. Chief Financial Officer (CFO): Manages financial planning, budgeting, and reporting,
ensuring sound financial management and sustainability for the company's
operations and growth initiatives.

5. Vice Presidents and Directors: Head various divisions and departments, overseeing
specific functions such as product development, sales, e-commerce, customer
experience, and human resources.

6. Managers and Team Leads: Lead teams within each division or department,
responsible for day-to-day operations, project management, and performance
optimization.

7. Employees and Staff: Contribute to the company's success through their roles in
design, manufacturing, marketing, sales, customer support, and other functions,
aligning their efforts with the company's goals and objectives.

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 SECTION 2

BUSINESS MODEL CANVAS TOOL

24
BUSINESS MODEL CANVAS TOOL :

25
 CHAPTER 2

INTRODUCTION

26
 THEORETICAL BACKGROUND OF THE STUDY

Exploring Risk-Return Analysis of Selected Mutual Funds in NJ India Invest Pvt Ltd,
Bengaluru: A Theoretical Study

In the realm of investment management, the evaluation of risk and return is paramount for
informed decision-making. This theoretical study delves into the intricacies of risk-return
analysis applied to selected mutual funds offered by NJ India Invest Pvt Ltd in Bengaluru.
By examining theoretical frameworks, methodologies, and key concepts in risk-return
analysis, this study aims to provide a comprehensive understanding of the factors
influencing investment performance and risk management strategies in the mutual fund
industry.

Theoretical Framework:

1. Modern Portfolio Theory (MPT):

- Developed by Harry Markowitz, MPT emphasizes the importance of diversification in

optimizing investment portfolios. The theory posits that investors seek to maximize returns
while minimizing risk by allocating assets across a mix of investments with varying levels
of risk and return. Key components of MPT include efficient frontier, capital market line,
and risk-adjusted returns.

2. Capital Asset Pricing Model (CAPM):

- CAPM, developed by William Sharpe, Jack Treynor, and John Lintner, provides a
framework for estimating the expected return on an investment based on its systematic risk
(beta) and the risk-free rate of return. The model suggests that the expected return of an
asset is proportional to its beta and the market risk premium, providing insights into the
relationship between risk and return in a well-diversified portfolio.
27
 3. Sharpe Ratio:

- The Sharpe Ratio, devised by William Sharpe, measures the risk-adjusted return of an
investment by assessing its excess return per unit of risk (standard deviation). A higher
Sharpe Ratio indicates superior risk-adjusted performance, reflecting the efficiency of the
investment in generating returns relative to its volatility.

4. Treynor Ratio:

- The Treynor Ratio, proposed by Jack Treynor, evaluates the risk-adjusted return of an
investment by comparing its excess return to its systematic risk (beta). Similar to the Sharpe
Ratio, a higher Treynor Ratio signifies better risk-adjusted performance, with greater returns
per unit of systematic risk.

5. Jensen's Alpha:

- Jensen's Alpha, developed by Michael Jensen, measures the excess return of an

investment relative to its expected return based on its systematic risk (beta) as per the
CAPM. A positive Jensen's Alpha indicates outperformance relative to the market, while a
negative alpha suggests underperformance after adjusting for risk.

Methodology:

- Conduct a comprehensive review of academic literature, research papers, and industry

reports on risk-return analysis in the mutual fund industry.

- Utilize mathematical formulas, equations, and statistical techniques to illustrate the

calculation and interpretation of key risk-return metrics, including standard deviation, beta,
Sharpe Ratio, Treynor Ratio, and Jensen's Alpha.

- Analyze historical performance data and hypothetical scenarios to demonstrate the

application of risk-return analysis in evaluating the performance of selected mutual funds
offered by NJ India Invest Pvt Ltd in Bengaluru.

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 - By delving into the theoretical underpinnings of risk-return analysis, this study
provides valuable insights into the principles, methodologies, and applications of evaluating
investment performance and managing risk in the mutual fund industry. Through a nuanced
understanding of theoretical frameworks and key metrics, investors can make informed
decisions and optimize their investment portfolios for achieving their financial goals.

NEED OF STUDY

In the fast-paced world of investment management, the need for a comprehensive

understanding of risk and return dynamics in mutual fund investments cannot be
overstated. This section delineates the compelling rationale behind undertaking a study on
risk-return analysis of selected mutual funds offered by NJ India Invest Pvt Ltd in
Bengaluru, shedding light on the significance, relevance, and potential implications of such
research endeavors.

1. Bridging the Knowledge Gap:

Despite the proliferation of mutual funds and the growing interest in investment
opportunities, there exists a notable gap in understanding the nuanced relationship between
risk and return in the context of mutual fund investments. A study focusing on risk-return
analysis of selected mutual funds in Bengaluru seeks to bridge this knowledge gap by
providing insights into the factors influencing investment performance and risk
management strategies.

2. Empowering Investors:
In an era characterized by increasing financial literacy and individual investor participation
in the capital markets, there is a pressing need to empower investors with the knowledge
and tools to make informed investment decisions. By studying risk-return analysis of
mutual funds, investors gain valuable insights into the risk-adjusted performance of

29
investment options, enabling them to assess investment suitability, manage expectations,
and align their investment strategies with their financial goals.

3. Enhancing Investment Decision-Making:

Effective investment decision-making hinges upon a thorough understanding of the risk-

return tradeoff inherent in investment opportunities. A study on risk-return analysis of
selected mutual funds equips investors, financial advisors, and fund managers with the
analytical tools and methodologies to evaluate investment performance, assess risk
exposure, and construct well-diversified portfolios tailored to investors' risk preferences
and return objectives.

4. Fostering Financial Stability:

Sound risk management practices are essential for promoting financial stability and
resilience in the face of market uncertainties and volatility. By studying risk-return analysis
of mutual funds, financial institutions and regulatory authorities gain insights into systemic
risks, market dynamics, and potential vulnerabilities in the mutual fund industry,
facilitating proactive risk mitigation measures and regulatory interventions to safeguard
investors' interests and preserve market integrity.

5. Driving Industry Innovation:

Research on risk-return analysis of mutual funds serves as a catalyst for industry

innovation and best practices. By identifying trends, benchmarks, and performance
metrics, such studies inspire industry stakeholders to innovate new investment products,
strategies, and risk management techniques that enhance investor outcomes, promote
market efficiency, and foster sustainable growth in the mutual fund industry.

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Purpose of the internship

The internship experience represents a pivotal juncture in one's educational and

professional journey, offering unique opportunities for learning, growth, and exploration.
This section elucidates the overarching purpose and significance of the internship,
shedding light on the multifaceted objectives and transformative impact it aims to impart
on interns' personal and professional development.

Skill Development:

The primary purpose of the internship is to provide interns with hands-on experience and
practical skills relevant to their field of study or career aspirations. Through meaningful
projects, assignments, and mentorship opportunities, interns have the opportunity to
enhance their technical competencies, soft skills, and industry knowledge, thereby
preparing them for future academic and professional pursuits.

Career Exploration:

The internship serves as a platform for interns to explore different career paths, industries,
and organizational cultures, helping them gain insights into their interests, strengths, and
areas of passion. By immersing themselves in diverse work environments and job roles,
interns can clarify their career goals, expand their professional network, and make
informed decisions about their future career trajectory.

Professional Networking:

Another key objective of the internship is to facilitate networking opportunities and foster
relationships with professionals, mentors, and peers within the industry. Interns have the
chance to connect with experienced professionals, seek guidance, and build valuable
contacts that can provide mentorship, referrals, and career advancement opportunities in
the future.

Practical Application of Knowledge:

The internship experience enables interns to apply theoretical concepts learned in academic
settings to real-world scenarios and challenges. By working on projects, solving problems,
and engaging with clients or customers, interns gain practical experience and a deeper

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understanding of how theoretical knowledge translates into practical solutions and
innovations.

Personal Growth and Development:

Beyond professional skill development, the internship fosters personal growth and self-
discovery. Interns are exposed to new environments, cultures, and perspectives,
challenging them to step out of their comfort zones, embrace diversity, and cultivate
resilience, adaptability, and emotional intelligence essential for success in today's dynamic
workplace.

Reasons for Choosing the Company:

Industry Reputation and Prestige:

The selected company is renowned for its industry reputation, track record of excellence, and
commitment to fostering talent and innovation within the finance sector. By choosing a
reputable and prestigious company, interns can gain exposure to best practices, learn from
industry leaders, and enhance their credentials and professional credibility.

Alignment with Career Aspirations:

The chosen company aligns closely with the intern's career aspirations, interests, and long-
term goals within the finance industry. Whether it's a leading financial institution, a fintech
startup, or a boutique investment firm, the company offers opportunities for interns to gain
relevant experience, explore different career paths, and develop skills that are transferable
and valuable in their chosen field.

Learning and Development Opportunities:

The selected company is committed to providing robust learning and development

opportunities for interns, including mentorship programs, training sessions, and hands-on
projects that foster skill development, knowledge acquisition, and professional growth.
Interns can leverage these opportunities to enhance their expertise, expand their capabilities,
and accelerate their career progression within the finance industry.

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General information regarding the nature of work carried out.

Project Management:

As an intern at Muthoot Fincorp, one of the primary responsibilities involved project

management, wherein I collaborated with cross-functional teams to execute strategic
initiatives aimed at enhancing operational efficiency, optimizing customer experiences, and
driving business growth. This encompassed project planning, stakeholder engagement,
progress tracking, and deliverable execution to ensure timely and successful project
outcomes.

Data Analysis and Insights:

A significant aspect of the internship role entailed conducting data analysis and generating
actionable insights to support decision-making processes across various business functions.
Leveraging analytical tools and techniques, I analyzed market trends, customer behavior
patterns, and performance metrics to identify opportunities, mitigate risks, and inform
strategic recommendations for improving business performance and competitiveness.

Market Research and Competitive Analysis:

Another key responsibility involved conducting market research and competitive analysis to
gain a comprehensive understanding of industry dynamics, customer preferences, and
competitive landscapes. This involved gathering market intelligence, benchmarking
competitors' offerings, and identifying emerging trends and opportunities to inform marketing
strategies, product development initiatives, and business expansion plans.

Digital Transformation Initiatives:

Muthoot Fincorp's commitment to digital transformation presented an exciting opportunity to

contribute to innovative digital initiatives aimed at modernizing business processes,
enhancing customer engagement, and driving digital adoption. As part of the internship, I
collaborated with digital transformation teams to assess existing digital capabilities, identify
areas for improvement, and propose solutions to streamline operations and enhance digital
experiences for customers.

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 Chapter 3

Problem statement

34
PROBLEM STATEMENT

NJ India Invest would typically involve assessing the historical performance of investment
portfolios managed by NJ India Invest, analyzing the associated risks, and determining the
relationship between risk and return. It includes analyzing the risks associated with their
investments, and identifying the key factors that influence their returns, such as market
conditions, fund management strategies, asset allocation, fees, and investor behavior.

SOLUTION

Assessing the historical performance of investment portfolios managed by NJ India Invest

Pvt Ltd entails a comprehensive analysis of various factors influencing investment outcomes,
including risk, return, market conditions, fund management strategies, asset allocation, fees,
and investor behavior. This section presents a solution framework for conducting such

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analysis, focusing on methodologies, tools, and key considerations to effectively evaluate
portfolio performance and manage associated risks.

Data Collection and Preparation:

Gather historical data on investment portfolios managed by NJ India Invest, including asset
allocation, fund performance, benchmark indices, market trends, and economic indicators.

Organize and clean the data to ensure accuracy, completeness, and consistency, facilitating
meaningful analysis and interpretation of portfolio performance and risk metrics.

Performance Measurement:

Utilize performance measurement techniques such as time-weighted return (TWR), money-

weighted return (MWR), and risk-adjusted return metrics (e.g., Sharpe Ratio, Treynor Ratio,
Jensen's Alpha) to evaluate the historical performance of investment portfolios relative to
benchmark indices and peer groups.

Assess portfolio performance over different time horizons (e.g., short-term, medium-term,
long-term) to capture trends, cyclical patterns, and performance consistency.

Risk Analysis and Assessment:

Conduct risk analysis to identify and quantify the various types of risks associated with
investment portfolios, including market risk, credit risk, liquidity risk, and operational risk.

Utilize risk management tools and techniques such as value-at-risk (VaR), standard deviation,
and covariance analysis to assess portfolio volatility, downside risk, and potential loss
scenarios under different market conditions.

Factor Analysis:

Perform factor analysis to identify the key factors influencing portfolio returns, such as
market factors (e.g., interest rates, inflation, economic indicators), fund-specific factors (e.g.,
fund size, expense ratio, turnover), and investor behavior factors (e.g., asset allocation
decisions, trading activity).

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Analyze the impact of these factors on portfolio performance and risk-adjusted returns,
helping identify sources of alpha and areas for improvement in fund management strategies.

Investor Behavior Analysis:

Explore investor behavior patterns, including investment flows, redemption trends, and fund
selection criteria, to understand how investor sentiment and behavior influence portfolio
performance and risk dynamics.

Assess the effectiveness of investor education initiatives, communication strategies, and

investor support services in promoting informed decision-making and mitigating behavioral
biases.

By employing a systematic approach to analyzing historical performance and risk assessment

of investment portfolios managed by NJ India Invest Pvt Ltd, stakeholders can gain valuable
insights into portfolio dynamics, risk-return profiles, and factors influencing investment
outcomes. This solution framework enables informed decision-making, enhances risk
management practices, and supports continuous improvement in fund management strategies,
ultimately benefiting investors and contributing to the overall success and sustainability of NJ
India Invests investment offerings.

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 CHAPTER 4

OUTCOMES OF IIP

38
 OUTCOMES

An ideal internship explores the fit between intern and employer. This can be a
meaningful learning experience for everyone involved, and is an excellent strategy for
growing the future successes.

Internships that succeed are goal oriented, engaging, and educational. They provide a
safe, structured environment that promotes goals that last for the entire duration of the
internship

During the Internship the student have gone through the following faces.

• Frequent Sessions with Mentor/Supervisor : During an internship, regular meetings with

a mentor or supervisor can be especially beneficial. An internship is a learning opportunity
that gives students or new professionals the chance to develop their practical knowledge
and abilities in a certain industry.

Regular meetings with a mentor or supervisor can aid the intern in maintaining their
focus on their learning objectives. The mentor or supervisor can offer advice on what the
intern should be studying, how to organise their work, and how to deal with difficulties
that may come up while they are interning.

• Intern Training and Specific Tasks : A thorough orientation and training programme
may be offered to interns in order to familiarise them with the culture, values, and mission
of the organisation. This can support interns in understanding how their work fits into the
bigger picture and in feeling a connection to the organisation.

• Fun Team Building Games and Events : Companies may organize team-building
activities for interns, such as group outings or volunteer opportunities. These activities can
help interns connect with their colleagues and feel like they are part of a team.

After understanding the costing methods adopted by rail wheel factory and after
analysing and interpreting the various elements of cost like direct material, direct labour,
factory overhead, administrative overhead, it is necessary to summarize the observations
that I have observed regarding the costing methods and cost elements in rail wheel factory.

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 Observations

• It is observed that the costing method adopted in rail wheel factory is time based
process costing.

• It is also observed that functional department in rail wheel factory like accounts
department, stores department etc are classified into cost centres.

• It is observed that the costs are determined on the basis of the actual costs incurred
(historical costs basis).

• It is observed that transfer price is based on cost price.

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 Chapter 5
EXPERIANTIAL LEARNING AND
CONCLUSION OF IIP

41
Experiential learning is a dynamic educational approach that emphasizes hands-on
experiences, reflection, and active engagement to deepen understanding, foster personal
growth, and cultivate practical skills. This section delves into the transformative power of
experiential learning, highlighting its significance, principles, and impact on learners'
development and outcomes.

Immersive Learning Experiences:

Experiential learning immerses learners in real-world contexts, simulations, or practical

activities that mirror authentic challenges and scenarios encountered in professional settings.
Whether through internships, fieldwork, case studies, or project-based learning, learners
actively participate in problem-solving, decision-making, and collaborative activities that
enhance their skills and knowledge.

Reflection and Feedback:

Central to experiential learning is the process of reflection, where learners critically analyze
their experiences, identify insights, and extract lessons learned. Through structured reflection
exercises, group discussions, and feedback sessions, learners deepen their understanding,
refine their approaches, and gain self-awareness, fostering continuous improvement and
personal development.

Application of Theory to Practice:

Experiential learning bridges the gap between theory and practice by providing opportunities
for learners to apply academic concepts, principles, and frameworks to real-world situations.
By grappling with authentic challenges, making decisions, and witnessing the consequences
of their actions, learners develop a deeper appreciation for theoretical concepts and their
practical relevance in professional contexts.

Active Engagement and Ownership:

Unlike traditional passive learning approaches, experiential learning encourages active

engagement and ownership of the learning process. Learners take on active roles as problem-
solvers, researchers, innovators, or entrepreneurs, driving their own learning journey and

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taking responsibility for their outcomes. This autonomy fosters intrinsic motivation, curiosity,
and a growth mindset conducive to lifelong learning.

Transferable Skills Development:

Experiential learning cultivates a wide range of transferable skills essential for success in
diverse personal, academic, and professional contexts. From critical thinking and
communication to collaboration, adaptability, and resilience, learners develop competencies
that transcend disciplinary boundaries and prepare them for the complexities of the 21st-
century workforce.

Embracing experiential learning offers a transformative journey of discovery and growth,

empowering learners to become active participants in their own education, deepen their
understanding, and develop practical skills essential for success in today's rapidly evolving
world. By immersing learners in authentic experiences, fostering reflection and feedback,
bridging theory and practice, promoting active engagement, and nurturing transferable skills
development, experiential learning unlocks the full potential of learners and equips them with
the tools, mindset, and confidence to thrive in an ever-changing landscape.

CONCLUSION OF IIP

Personal Growth:

Throughout the internship, I have encountered numerous challenges, embraced new

responsibilities, and expanded my skill set in ways that surpassed my initial expectations.
From refining my communication and teamwork abilities to enhancing my problem-solving
and decision-making capabilities, each day presented opportunities for growth and self-
discovery. Moreover, the exposure to diverse perspectives, cultures, and work environments
has broadened my horizons and cultivated a deeper sense of empathy, adaptability, and
resilience.

Professional Development:

The internship has provided a platform for me to apply theoretical knowledge gained from
academic studies to real-world scenarios, thus bridging the gap between theory and practice.
Engaging in hands-on projects, collaborating with cross-functional teams, and navigating

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complex organizational dynamics have honed my strategic thinking, project management,
and leadership skills. Furthermore, exposure to industry-specific tools, technologies, and best
practices has equipped me with valuable insights and competencies essential for success in
the [industry sector].

Contributions to the Company:

During my tenure at NJ GROUP, I had the privilege of contributing to various projects,

initiatives, and deliverables that directly impacted the company's objectives and operations.
Whether it was conducting market research, analyzing data, developing strategic
recommendations, or supporting day-to-day tasks, I approached each responsibility with
dedication, enthusiasm, and a commitment to excellence. The collaborative spirit and
mentorship provided by colleagues and supervisors have been instrumental in facilitating my
contributions and fostering a supportive learning environment.

Future Endeavours:

As I transition from the internship experience, I carry with me a wealth of knowledge, skills,
and experiences that will undoubtedly shape my future endeavours. The lessons learned,
connections forged, and achievements attained during this journey serve as a solid foundation
upon which to build a successful career in the [industry sector]. Moving forward, I am eager
to leverage the insights gained and continue my pursuit of excellence, innovation, and
continuous learning in all my endeavours.

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