Free Essay

An Outlook on the Evolution of Mutual Funds - India

In: Business and Management

Submitted By deyvaansh
Words 2813
Pages 12
An Outlook on the Evolution, Scope and Growth Potential of the Mutual Funds Industry In

Deyvaansh Misra

Contents INTRODUCTION 3 A RETROSPECTIVE VIEW OF MUTUAL FUNDS 5 THE FUTURE LIES ON THE BRINK OF THE HORIZON 6 CONCLUSION 10

INTRODUCTION
Shakespeare once wrote, ‘out of this nettle, danger, we pluck this flower, safety'.
The Indian mutual fund industry has witnessed significant growth in the past few years driven by several favourable economic and demographic factors such as rising income levels and the increasing reach of Asset Management Companies (AMCs) and distributors. However, after several years of relentless growth, the industry witnessed a fall of 8 percent in the assets under management in the financial year 2008-09 that has impacted revenues and profitability. Recent developments triggered by the global economic crisis have served to highlight the vulnerability of the Indian mutual fund industry to global economic turbulence and exposed the increased dependence on corporate customers and the retail distribution system. It is therefore an opportune time for the industry to dwell on the experiences and develop a roadmap through a collaborative effort across all stakeholders, to achieve sustained profitable growth and strengthen investor faith and confidence in the health of the industry. Innovative strategies of AMCs and distributors, enabling support from the regulator SEBI, and pro-active initiatives from the industry bodies CII and AMFI are likely to be the key components in defining the future shape of the industry.
The Indian mutual fund industry has gained immense experience and continues to reinvent itself gradually, exhibiting steady growth over the last decade. A compound annual growth rate of 28% has been recorded by assets under management over the period 2006-10. In today’s volatile market environment, mutual funds are looked upon as a transparent and low cost investment vehicle, attracting a substantial amount of investor attention
The industry is undergoing rapid transformation, with multiple developments taking place on the regulatory front, all ostensibly with the primary objective of protecting the investor and streamlining trading practices to bring in more efficiency. The market participants are in a watchful mood, waiting to see how the industry adapts to these changes. Asset management companies are restructuring their business models in order to sustain the growth momentum of the industry, and provide for increased levels of operating efficiency and investor satisfaction. The industry continues to battle with the challenges of increasing investor awareness, low retail participation, high dependence on the corporate sector and increasing cost of operations. Mutual funds need to play an anchor role in directing the household savings into capital markets.
Assets under management as % of GDP are below 5% in India as compared to 70% in the US, 61% in France and 37% in Brazil. To increase penetration levels of mutual funds, the focus on inclusive growth has taken centre-stage, with all efforts by the regulator and fund houses being concerted in this direction.
It is therefore necessary to reach out to people in Tier II and Tier III cities, which are a daunting proposition considering costs of distribution and outreach and hence planned steps need to be taken to attain some of the long term objectives of financial inclusion. The rising incomes in Tier II and Tier III cities would indicate the latent potential in these cities. It is a matter of channelizing their savings appropriately into mutual fund investments, for which investor education is a necessary first step.

WHAT ARE MUTUAL FUNDS?
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. Anybody with an investible surplus of as little as a few hundred rupees can invest in Mutual Funds. These Investors buy units of a particular Mutual Fund scheme that has a defined investment objective and strategy. The money thus collected is then invested by the fund manager in different types of securities. These could range from shares to debentures to money market instruments, depending upon the scheme’s stated objectives. The income earned through these investments and the capital appreciation realised by the scheme are shared by its unit-holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

A RETROSPECTIVE VIEW OF MUTUAL FUNDS

Mutual funds go back to the times of the Egyptians and Phonecians when they sold shares in caravans and vessels to spread the risk of these ventures. The foreign and colonial Government Trust of London of 1868 is considered to be the fore-runner of the modern concept of mutual funds. The USA is, however, considered to be the mecca of modern mutual funds. By the early 1930s quite a large number of close-ended mutual funds were in operation in the U.S.A. Much later in 1954, the committee on finance for the private sector recommended mobilisation of savings of the middle class investors through unit trusts. Finally in July 1964, the concept took root in India when Unit Trust of India was set up with the twin objective of mobilising household savings and investing the funds in the capital market for industrial growth. Household sector accounted for about 80 percent of nation’s savings and only about one third of such savings was available to the corporate sector, It was felt that UTI could be an effective vehicle for channelizing progressively larger shares of household savings to productive investments in the corporate sector. The process of economic liberalization in the 90s not only brought in dramatic changes in the environment for Indian industries, corporate sector and the capital market but also led to the emergence of demand for newer financial services such as issue management, corporate counselling, capital restructuring and loan syndication. After two decades of UTI monopoly, other public sector organisations like LIC (1989), GIC (1991), SBI (1987), Can Bank (1987), Indian Bank (1990), Bank of India (1990), Punjab National Bank (1990) were permitted to set up mutual funds, subsequently followed by private financial enterprises, resulting in an investor revolution. Suddenly the term, ‘stock market, mutual funds, savings bonds’ became household commonalities.

Today, the industry stands at 38 asset management companies that manage Rs. 7.1 trillion (USD 160 billion) of Assets under Management (AUM) raised from around 470 million accounts. Since the economic liberalisation of the early nineties, mutual funds have been regulated by the securities market regulator, Securities and Exchanges Board of India (SEBI), which was itself a very new regulator in the early nineties. At the time, like all the other parts of the financial sector, the industry was lightly regulated with low levels of transparency about the management of funds. It was only in 1998, after a spectacular episode of market misconduct by the CRB group of companies that there was a sea-change in the regulation and supervision of the mutual fund industry. The regulator focussed on the production end of the mutual fund industry. This resulted in very high disclosure and transparency of the assets under management and improving the governance of the AMCs, setting it apart from the rest of the fund management industry in India. This path towards greater transparency became the industry norm when UTI, the only AMC that was exempt from full transparency on certain products, developed problems in fulfilling obligations to customers. As part of the government bailout package in 2001, the AMC was broken up into two funds. One had a fixed mandate of winding down upon completing the obligations of the original UTI schemes (primarily US-64) to existing customers. The other was a company where the government was one of other shareholders that would follow all the regulation of the other mutual fund companies. With this, the mutual fund industry became the only fund management industry in India with a minimal presence of public sector ownership. Since then, there have continued to be changes in the regulation of mutual funds, but largely driven by developments in the broader securities markets. The rules-driven regulatory framework in India has meant that innovation in the securities markets often drives change in the rules on how mutual funds can access these innovations in offering new products to their customers. However, regulations governing the fund management process have been more or less stable, albeit conservative.

THE FUTURE LIES ON THE BRINK OF THE HORIZON
Quite easily the most important aspect for the MFI will be retail investor participation. Though the appetite of retail investors in India for participating in the country’s growth story remains to be satiated in a big way on the part of investors, over a medium to long term horizon, the investors are well aware of the equity markets showing signs of having good potential for capital appreciation.
Participation in the mutual fund industry remains skewed towards the corporate investors, involving low participation from the retail sector. As of March 2010, the corporate sector contributes around 51% of the total assets under management, while the retail segment contributes only around 27% of the total assets under management, which is a slight increase from 21% reported in the previous year.
Investor confidence in the securities market took a beating during the downturn, and since the course of the mutual funds shadows that of the capital market, investors also lost faith in mutual funds, leading to a lot of redemption pressures for fund houses. Investors should be encouraged to migrate to mutual funds from other traditional modes of investment and should be prepared adequately to take measured risks. One of the reasons why mutual funds have failed to cultivate the confidence the investor is that most often, the risk attached to the product is “under wraps”. Thus, the long term benefits of remaining invested in these funds over a long term horizon are lost on the investor. The result is that, a product designed for a small investor fails to foster a market for itself. Implementing disclosure practices is likely to lead to increased transparency, which may result in increased confidence of the investor.
Capital markets in India, perceived as part of one of the fastest growing economies, have caught the attention of global investors. Foreign investments have poured into the country, with around $20 billion ploughed into the capital markets in the period January 2010 to November 2010. In March 2010, the number of SEBI registered FIIs went up to 1,713 from 1,635 a year ago. Their net purchase in equities was $23 billion in 2009-10 against net sales of $10 billion in the previous year. The total net inflow of FII was Rs.1,427 billion ($ 31 billion) as against an outflow of FII of Rs.458 billion ($10 billion) in 2008-09.
Part of the SEBI rationale for explicit disclosure of distribution commission has been in reaction to the abuse of such practices in other areas of financial fund management in India, at the expense of the investor. Also, SEBI's regulations (to trade MF products on exchange, make transparent distribution costs) seem to be on track with respect to the larger global trend is towards greater transparency. All of this is being done to achieve an increased retail participation in mutual fund products over the medium and long term horizons. However, increased retail participation is not driven by lower costs of participation alone. An illustrative example from within India is the New Pension System (NPS). The NPS was designed with the explicit aim of providing a transparent and low cost pension product to any citizen in India. While the end system has evolved differently from the original design, the NPS does adhere to being one of the lowest cost fund management systems.

One the greatest bottleneck perceived is that of a lack of investor awareness. If this is true, then how can investor awareness about the mutual fund products be improved?
In this, what is the role of the (a) regulator and (b) the mutual fund industry to promote this need?

Presently, it is the distribution agents" that make investors aware of products available in the financial sector, be it mutual funds or others like insurance. However, the services they provide range from high valued financial advisory for high net worth individuals to agents that are only responsible for the collection of cheques from customer for delivery to the AMC. There is no standardisation of the role specification of the distributor. They have no accountability with regards to the services they provide to the investor, or to the AMC. This had led to wide-spread incidence of unethical selling of products across all financial products, across all countries, where the objective of the sale has been to maximise the revenues from the sale rather than to ensure a match between the needs of the investor and the product offered by the AMC.

That context raises the following questions: 1. Can the existing set of distributors play a greater role in improving investor awareness towards using mutual fund products (or indeed, any financial product) for financial planning? 2. Can the creation of a financial advisory channel/transition of the existing distribution agents towards financial advisory services be done by the financial companies themselves? 3. What is the role of regulation in the creation of such a channel? 4. Since the financial advisory channel must ideally span different financial products (which currently are under different regulators in India today) what is the optimal regulatory involvement to govern the creation and regulation of the financial advisory channel?

A common feature of all financial products available in India today is that there are very few simple and easy to understand products (this is true for mutual funds as well). Given the limited space of assets based on which mutual fund products can be created, there is perhaps a limit on the risk-return choices that can be offered by various fund managers. Therefore, the differentiation across products comes in the form of either (a) bundled with other financial products like insurance or (b) carries additional optionality of and upon exit. This is typically specified as fine-print on the product specification. The complexity that this introduces in understanding products becomes a serious impediment to customer participation. This is enhanced when the customer base has low investment awareness.

The question that needs to be visited is:
Why is there so little product simplicity in the mutual fund space, or indeed any financial product space, in India?
Is there any role for regulation to play in bringing about more simplicity of mutual fund products?

Another bottleneck is that of better investor access. One easy way to visualise this problem is the minimum amount that is required before an individual investor can save using mutual fund products. What is the role of the (a) regulator and (b) the mutual fund industry to promote access to mutual fund products?

A couple of issues fall under the question of access:

1. Account opening procedures (for instance, the recent KYC requirements for the investors can be onerous to the small retail investor).
2. Minimum size of investment (several products have minimum investment sizes that place them out of the reach of small investors.

How much of the poor retail participation in mutual funds is caused by the lack of a level playing field" between different fund management choices available to the Indian investor today?

But in the interim while it is operational, what can the SEBI/market participants do to resolve these differences? What role can the foreign fund management industry play in this process of developing the fund management industry in India?

In the past two decades since the start of the economic liberalisation, foreign participation has played a significant role in the development of the finance industry, either through example, or by providing competition to the domestic industry. The fund management industry all over the world is going through a series of reforms similar to the Indian industry. This is particularly true in the area of evolving different business models that frontally attack the issues of improving investor awareness and more transparent distribution of products through the development of a range of financial advisory services.

CONCLUSION
It remains implacably clear that the existential dilemma posed by the rapid growth of mutual funds, need for stronger retail participation and the growing importance on India are all indicators of a wide ranging and diverse MFI future portfolio. Personally, we believe that the time of the investor has dawned, and it is only a matter of time when the ubiquitous common man is an experienced investor. But amidst the regaling there needs to be a strong word of caution. Let us learn from others’ mistakes and develop a sound regulatory framework that avoids the bane of investor manipulation and exploitation.

Similar Documents

Premium Essay

Wkf[Ew

...ssA Summer Training Project Report ON “A STUDY ON MUTUAL FUND COMPANIES IN INDIA WITH SPECIAL REFERENCE TO RELIANCE MUTUAL FUND AND UTI MUTUAL FUND.” IN [pic] SUBMITTED TOWARDS THE PARTIAL FULFILMENT OF THE MASTER’S DEGREE IN BUSINESS ADMINISTRATION 2009-2011, AFFILIATED TO GAUTAM BUDDH TECHNICAL UNIVERSITY (GBTU), LUCKNOW UNDER THE GUIDANCE OF: Mr. Sanjeev Kumar Shukla (Cluster Head- Delhi/NCR) KARVY, Ghaziabad SUBMITTED BY: SUNIL KUMAR Roll No.: 0903070054 MBA- 3rd Sem. [pic] SCHOOL OF MANAGEMENT, INDERPRASTHA ENGINEERING COLLEGE, GHAZIABAD, 201010 DECLARATION I, SUNIL KUMAR the student of Master of Business Administration, IPEC- Semester 3rd (2009-11) hereby declare that, I have completed this project on “A STUDY ON MUTUAL FUND COMPANIES IN INDIA WITH SPECIAL REFERENCE TO RELIANCE MUTUAL FUND AND UTI MUTUAL FUND.” The submitted information is true & original to the best of my knowledge. Date: Student’s Signature Place: (SUNIL KUMAR) Roll No. 0903070054 ACKNOWLEDGEMENT Before we get into thick of things, I would like to add a few words of appreciation for the people who have been a part of this project right from its inception. The writing of this project has been one of the significant academic challenges I have faced and without the support...

Words: 20728 - Pages: 83

Premium Essay

Mutual Funds

...Report On “Mutual Funds and their role in portfolio management” Submitted in partial fulfillment of the requirement of Certification Course in Capital and Financial Markets Submitted by: Name: Karthik L.Reddy Roll No. 5 OCPCFM Batch June 2012 Under the Guidance of: Dr. J. Symss Indian Institute of Foreign Trade New Delhi 1 INDEX Serial No. 1 2 Executive summary Objectives Introduction Advantages and Disadvantages Types of Funds Managing a portfolio of funds MF industry in India Topic Page Numbers 4 5 6 9 12 15 21 26 27 28 4 Chapters 5 6 7 Conclusion References Appendix 2 APPENDIX Appendix No. Appendix 1 Appendix 2 Appendix 3 Description Major MF Companies in India and Top Funds Introduction to AMF India Knowing the Prospectus Page Numbers 28 31 33 3 EXECUTIVE SUMMARY This report – “Mutual Funds and their role in portfolio management” would help the readers take advantage of an excellent investment vehicle: mutual funds — the best of which offer you diversification, which reduces your risks, and low-cost access to outstanding money managers, who boost your returns. The topic has been chosen to provide a detailed introduction to the world of mutual funds along with the jargon associated with it, the various types of mutual funds available in today’s market. Mutual funds play a vital role in any investment portfolio. So managing a portfolio of funds becomes very critical for any investor – small or big, short-term or long-term...

Words: 7997 - Pages: 32

Premium Essay

“to Study the Dynamic Relationship Among Fiis, Mutual Fund Equity Investment and Other Selected Variables with Nifty”

...DYNAMIC RELATIONSHIP AMONG FIIs, MUTUAL FUND EQUITY INVESTMENT AND OTHER SELECTED VARIABLES WITH NIFTY” Submitted to S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide: Company Guide: Ms.Swapna Nair Mr. Mukesh Vishwakarma Assistant Professor Branch Manager Submitted by Mr. Kalpesh R. Ukani [Batch No. 2014-16, Enrollment No. 147500592114] MBA SEMESTER III S.R. LUTHRA INSTITUTE OF MANAGEMENT – 750 MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad July, 2015 Company Certificate This is to certify that Mr. Kalpesh R. Ukani from S.R. LUTHRA INSTITUTE OF MANAGEMENT, have carried out the research on the subject titled “TO STUDY THE DYNAMIC RELATIONSHIP AMONG FIIs, MUTUAL FUND EQUITY INVESTMENT AND OTHER SELECTED VARIABLES WITH NIFTY” at ICICI SECURITIES under the supervision of Mr. Mukesh Vishwakarma, from 8th June 2015 to 17th July, 2015. I also certify that, the above mentioned student has carried the research work satisfactorily. Place: - Surat Date: - _________ Mr. Mukesh Vishwakarma (Branch Manager) Student’s Declaration I, Mr. Kalpesh R. Ukani , hereby declare that the report for Summer Internship Project entitled “TO STUDY THE DYNAMIC RELATIONSHIP AMONG FIIs, MUTUAL FUND EQUITY INVESTMENT AND OTHER...

Words: 14155 - Pages: 57

Premium Essay

Banaking Sector

...Banking in India From Wikipedia, the free encyclopedia Jump to: navigation, search   Structure of the organised banking sector in India. Number of banks are in brackets. Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. Contents [hide]  * 1 History * 2 Post-Independence * 3 Nationalisation * 4 Liberalisation * 5 Adoption of banking technology * 6 Further reading * 7 References * 8 External links | [edit] History Merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires...

Words: 3102 - Pages: 13

Premium Essay

Capital Market

...has been fully acknowledged. PREFACE The successful completion of this project was a unique experience for us because by visiting many place and interacting various person, I achieved a better knowledge about this project. The experience which I gained by doing this project was essential at this turning point of my carrier this project is being submitted which content detailed analysis of the research under taken by me. The research provides an opportunity to the student to devote her skills knowledge and competencies required during the technical session. The research is on the topic “Capital market”. Index Serial No. 1 Particulars Page No. Capital market 2 Role of capital market in India 3 Factors affecting capital market in India 4 India stock exchange overview 5 Capital...

Words: 16886 - Pages: 68

Premium Essay

Derivative in India

...Derivatives The global economic order that emerged after World War II was a system where many less developed countries administered prices and centrally allocated resources. Even the developed economies operated under the Bretton Woods system of fixed exchange rates. The system of fixed prices came under stress from the 1970s onwards. High inflation and unemployment rates made interest rates more volatile. The Bretton Woods system was dismantled in 1971, freeing exchange rates to fluctuate. Less developed countries like India began opening up their economies and allowing prices to vary with market conditions. Price fluctuations make it hard for businesses to estimate their future production costs and revenues. 2 Derivative securities provide them a valuable set of tools for managing this risk. This article describes the evolution of Indian derivatives markets, the popular derivatives instruments, and the main users of derivatives in India. I conclude by assessing the outlook for Indian derivatives markets in the near and medium term. 2. Definition and Uses of Derivatives A derivative security is a financial contract whose value is derived from the value of something else, such as a stock price, a commodity price, an exchange rate, an interest rate, or even an index of prices. In the Appendix, I describe some simple types of derivatives: forwards, futures, options and swaps. Derivatives may be traded for a variety of reasons. A derivative enables a trader to hedge some...

Words: 3841 - Pages: 16

Free Essay

Afffgvfbbvbvbvbvbv

...policy of india. When India became independent on August 15, 1947, Pandit Jawaharlal Nehru became her first Prime Minister. For long seventeen years (1947-1964), he remained in power and during this long period he was the central figure of India’s foreign policy making. It was Nehruji who framed and guided the Foreign Policy of India. To Pandit Nehru non-alignment was the corner stone of India’s foreign policy. He adopted this policy for various reasons, which may be divided into material and immaterial or spiritual reasons. The geographical and economic condition of India just after independence served as the material reasons for his favoring the policy of non-alignment. India’s next door neighbour on one side is People’s Republic of China and on the other is Pakistan, the arch enemy of India since her very emancipation from the British yoke. Nehru could easily realize that if India joins any of these two blocks, she would bring the rage of the other on her. It was indeed a crucial problem for the newly independent India and so he had chosen the path of non-alignment. Moreover, in order to guard her saturated post-independent economic condition India seriously needed the co-operation of both the big powers, U.S.A. and U.S.S.R. and their satellites the developed countries of Europe. Her entry into one bloc would not only make the members of the other bloc hostile to her interest but also might jeopardize her very independence. For this economic consideration India was really...

Words: 4269 - Pages: 18

Free Essay

Comparative Analysis of Four Stock Broking Company

...INTRODUCTION Every company want to earn maximum profit as well as satisfaction of consumer by providing best Quality product, Service, etc. So company produce product with best quality & free of complaints. The main reason to undertake this study is doing “comparative study of four stock broking companies of gandhinagar with reference to SSJ FINANCE”. The other three companies include ANGELBROKING,SWASTIKA INVESTMART & SHAREKHAN. The comparision include SWOT analysis of these four companies & also interms of services,activation charges,amc etc. In present booming situation all people are by one way or by other thinks about the developmental changes that occurred in recent past month in this situation those who are really remains in touch with per second activity are the broker who knows where people are investing they offers outstanding services like SSJ Finance & security pvt ltd ,angel broking etc at less brokerage don’t you thing all these are wonders! Yes, it is because risk management they have in well regulated market economy. One prudent investor can also get a secure investment with his financial planning and well diversified portfolio investment in this report you will realize certain best judgmental, analytical, and risk awarse nature from both risk management and portfolio investment threw equity derivatives. Savings form an important part of the economy of any nation. With the savings invested in various options available to the people...

Words: 9502 - Pages: 39

Premium Essay

Mbfs

...this sector in India from independence through the 1990s has led to different sets of reforms, with each model adopted focusing on distinct competitive strategies. This study identifies the causes and the objectives with which the sector was reformed in 2000 to conclude that only in the last decade, the hybrid model of privatization with regulation adopted by the Government has yielded positive results and the sector has started to look up. The sector in its present form looks promising for the consumers, the insurers and the nation as a whole. Keywords: life insurance, regulation, competitiveness, Governmental reforms Theme: Enhancing Competitiveness Sub-Theme: Strategies for Enhancing Competitiveness of Firms, Industry Sectors and Country Introduction The insurance industry affects money, capital markets and the real sectors in an economy, making insurance facility necessary to ensure the completeness of a market. It is an industry with strategic importance for any country as it contributes to the financial sector (and hence the GDP) as well as confers social benefits on the society. At the micro-level, an insurance policy protects the buyer against financial loss arising from a specified set of risks at some cost. It thus reduces anxiety and promotes financial stability by providing a much needed social security net, especially in times of crumbling family ties and nuclear households in developing countries. Despite the obvious advantages of insurance, India was one of the...

Words: 5570 - Pages: 23

Premium Essay

Tanishq

...Table of Contents Chapter 1- Introduction To The Industry Evolution Of Jewellery Industry Introduction To Indian Jewellery Industry SWOT Analysis Of The Industry Current Scenario Of The Industry Future Outlook Of The Industry Chapter 2- Company Profile Tanishq Orra Chapter 3- Research Methodology Objective Scope Data Collection Limitations Chapter 4- Comparative Analysis SWOT Analysis -Ta nis hq SWOT Analysis - Kiah Chapter 5- Conclusion Bibliography [pic][pic][pic][pic][pic][pic] [pic] Avi Batra BBA – Semester II Roll No. 4501/09 Comparison of two companies as per Principles of Marketing Jewellery Industry [pic][pic][pic][pic] Table of Contents Chapter 1- Introduction To The Industry Evolution Of Jewellery Industry Introduction To Indian Jewellery Industry SWOT Analysis Of The Industry Current Scenario Of The Industry Future Outlook Of The Industry Chapter 2- Company Profile Tanishq Orra Chapter 3- Research Methodology Objective Scope Data Collection Limitations Chapter 4- Comparative Analysis SWOT Analysis -Ta nis hq SWOT Analysis - Kiah Chapter 5- Conclusion Bibliography [pic]Chapter 1- Introduction to the Industry Evolution Of Jewellery Industry In India The Indian subcontinent has the longest continuous legacy of jewellery making anywhere since Ramayana and Mahabharata times. While Western traditions were heavily influenced by waxing and waning empires, India enjoyed a continuous development of art forms for some 5000 years...

Words: 6229 - Pages: 25

Premium Essay

Shopaholics

...INSURANCE ADVISORS EFFECTIVENESS FOR PUBLIC AND PRIVATE INSURER: A DEMOGRAPHIC STUDY Krishan Kumar Pandey*Manisha Pandey** Manish Kerwar***Ashutosh Khare**** Dharmendra Singh***** Abstract : Few years back insurance was an arcane word for all of us. Insurance is no longer an unexciting business and the insurance advisor an apologetic salesman. New entries have actually changed the rules of the game in the insurance industry. One such change that has made a huge positive impact in the minds of Indian consumers is the product innovation by the insurance companies. New products are being launched; new distribution channels opened and thousands of sales advisers and managers are being recruited every month. This rapid change is demanding new regulations, new methods of management, new methods of operation and ofcourse considerable development in knowledge, attitude and skills of the workforce. Such times demand business/ output focused people who think widely, are confident about taking risks and decisions and prioritise their own and others’ actions to achieve the business need. Without these attributes the growth pattern that has begun will not be sustained. So are these attributes being developed in people? People know what they should do but they do not necessarily know how to do it. This study is well ahead to evaluate the effectiveness of Insurance Advisors. *, * * Faculty in Prestige Institute of Management, Gwalior * * * , * * * * , * * * * * Alumni, Prestige Institute...

Words: 63042 - Pages: 253

Premium Essay

China and India

...2010 India and China: A study in comparison [pic] Neetika Chakraborty Roll number-818 Economics (H) Third Year Acknowledgment I would like to thank my third year teachers- Ms. Nandini Kumar and Mrs. Meeta Kumar for their superior reaching capabilities and constant support. They have always been there to answer every query and help me out with research material whenever I required it. This project would not have been possible without them. This project would also not have been possible without the vast amount of data which was made available through the database of the reserve bank of India and the central bank of the Republic of China. Furthermore, I am indebted to the huge quantity of information available on the internet which was an important part of my initial research. INDEX 1. Introduction 2. Political Evolution ❖ China ❖ India ❖ Drawing a comparison 3. International Trade ❖ China ❖ India ❖ Bilateral trade between India and China 4. Population Trends ❖ Drawing a comparison 5. Conclusion 6. Bibliography Introduction China’s and India’s rapid growth and economic policies, as well as their role in International trade and capital markets, have generated a large amount of interest and research. Much of the attention focuses on their growth prospects and on their faculty to influence global governance. Two salient characteristics of China and India are...

Words: 5871 - Pages: 24

Premium Essay

Business Analysis

...Business Analysis: Ford Motor Company Milan C. Kelly MGT 521 Christopher Romano August 1, 2011 Abstract In recent years several American corporations have seen record low sales and profit accumulation. Ford Motor Company is a company that has made steps toward improving sales, profit, and meeting the needs of all stakeholders. As a mutual fund manager, I will examine the SWOT Analysis, financial statements, and trends in the market to determine if Ford Motor Company is a wise investment. Recently, Ford has changed to make the company more appealing to investors. Strengths in the company include: strong engineering capability, extensive dealer network, diversified product base, and a strong market position. Ford’s focus in improving their automobile’s engineering capability is fuel efficiency and safety. The improvement of these characteristics is more appealing to consumers and allows this company to further develop the product line. With an extensive dealer network of 17,107 Ford could market and sell automobiles globally. Acquiring such a large global distribution permits Ford to meet the demands of the market as well as their consumers. The diversified product portfolio gives Ford an advantage over the competition. New and updated vehicle models such as small, mid-size, and premium sedans, pickup trucks, compact, and sports utility vehicles give consumers of different demographics a wide range...

Words: 3966 - Pages: 16

Premium Essay

Business Analysis Mgt 521

...Business Analysis: Ford Motor Company Milan C. Kelly MGT 521 Christopher Romano August 1, 2011 Abstract In recent years several American corporations have seen record low sales and profit accumulation. Ford Motor Company is a company that has made steps toward improving sales, profit, and meeting the needs of all stakeholders. As a mutual fund manager, I will examine the SWOT Analysis, financial statements, and trends in the market to determine if Ford Motor Company is a wise investment. Recently, Ford has changed to make the company more appealing to investors. Strengths in the company include: strong engineering capability, extensive dealer network, diversified product base, and a strong market position. Ford’s focus in improving their automobile’s engineering capability is fuel efficiency and safety. The improvement of these characteristics is more appealing to consumers and allows this company to further develop the product line. With an extensive dealer network of 17,107 Ford could market and sell automobiles globally. Acquiring such a large global distribution permits Ford to meet the demands of the market as well as their consumers. The diversified product portfolio gives Ford an advantage over the competition. New and updated vehicle models such as small, mid-size, and premium sedans, pickup trucks, compact, and sports utility vehicles give consumers...

Words: 3966 - Pages: 16

Premium Essay

The Organization of International Business

...Chapter 15 The Organization of International Business Laws control the lesser man. Right conduct controls the greater one. – Chinese proverb Opening Photo Objectives • Profile the evolving process of organizing a company for international business • Describe the features of classical structures • Describe the features of neoclassical structures • Discuss the systems used to coordinate and control international activities • Profile the role and characteristics of organizational culture CASE: Building an Organization at Johnson & Johnson The typical pharmaceutical company relies on global integration, given its steep product development costs and potential scale economies. Meanwhile, it must respond to local market conditions, obtaining government approval for each product in each country and establishing local sales and distribution systems. Consequently, headquarters and subsidiaries jointly implement the company’s strategy. Building an organization that can meet this mission is tough. One standout that does is Johnson & Johnson (J&J). Since the start of its U.S. operations in 1886, J&J has evolved into the most broadly based health-care company in the world. International activity began in 1919 with J&J Canada. Headquartered in New Brunswick, New Jersey, J&J lists 250 operating companies across the world, holds more than 54,000 U.S. and foreign patents, sells products in more than 175 countries, and employs about 115,000 people worldwide, with...

Words: 18038 - Pages: 73