Marketing of financial investments; SRF Finance Ltd.

Abstract

This project on the marketing of financial services focuses on FD schemes and Mutual Fund schemes operating in north India. The survey presents a survey of the major players in’ the FD market with in the manufacturing and the financial services sector with their marketing networks, deposit levels promotional tools and services provided. Analysis of both the sectors has been done and the findings presented separately. Findings were: Manufacturing Sector:- 1) While the normal network was through brokers, companies with higher thrust used agents, gave targets ‘ith associated gift schemes and were rewarded with a higher deposit per investor. 2) The methed of probation period was used by the above cos. for recruiting agents. 3) Mailers and meetings were compensatory devices in FD promotion. 4) While sending of Interest warrants in advance no longer forms a SP, sending of principal amount in advance can form a SP. Financial Services Sector:- 1) Direct investors are allowed by all companies, with the exception of ITC and Eicher, as they are seen as disturbing the normal marketing network. 2) Meetings and mailer were again compensatory devices. 3) Since sending of FDRs by established players is in 2 weeks, an immediate FDR still forms a SP. Sending of interest warrants in advance is no longer a SP. For mutual fund schemes a survey of the public sector mutual funds was carried out. In case of private sector mutual funds only CFC could be contacted. A brief meeting with Apple Finance elicited limited information. Major findings were 1) While the normal network for public sector mutual funds was through agents, private sector funds that were contacted used in-house broking division (CFC), and Group Leader concept (Apple) 2) There were a lower number of agents for PNB than most of the other public sector mutual funds. . 3) Promotion was mainly through incentive schemes. However unique tools were used by GIC and UTI. 4)There is no system of keeping regular contact with the agents. Except for Cantimes no regular mailers are sent to the agents except before the launch of a schemes.