Mahindra Finance –

Why To Invest In Company FD?

Presented By
Shreyas D Laste
Roll No 28
 Objective
• To study where the people are interested in
investing their money.
• My main aim in this project was to compare
MMFS fixed deposit scheme over the other
fixed deposit schemes offered by other
financial institutions
• To find out how MMFS fixed deposit are
better than bank deposits.
 Company Profile
About MMFS

 One of The Leading NBFC

 Main Goal & Strategy
 Seeking Position
 Company Profile
Line of Business
 Fixed Deposit
 Meaning
 Interest Income
 Effective Return
 Pros & Cons
 Reasons To Invest In FD’s
 Advantages & Disadvantages of
FD’s
Advantages
 Safe Investment
 Receiving Regular Income
 Longer The Investment Better The Investment

Disadvantages
 Not Safe As Bank FD’s
 Wont Give Returns As Compared To Stock Mkt
 No Protection Against Inflation
 Research Methodology
 Primary Research
 Secondary Research

Method Used - Questionnaire

 Analysis
MMFS Fixed Deposit

Non Cumulative Half Yearly Scheme

Minimum Period
Amount (Months) Interest p.a.
12 8.75%
Rs 25000 24 9.25%
36 9.75%
 Analysis
Cumulative Scheme

Minimum Period Amount Effective

Amount (Months) Payable Interest p.a. Yield p.a.
12 Rs 10900 9.00% 9.00%
Rs 1000 18 Rs 11430 9.25% 9.53%
24 Rs 11990 9.50% 9.95%
36 Rs 13310 10.00% 11.03%
 Comparison of MMFS With Private Banks
Amount: 10,000 INR

Tenure: 1 Years
MMFS AXIS HDFC Bank ICICI

Key Features
Interest type Compound Interest Compound Interest Compound Interest Compound Interest
Product name Fixed Deposit Fixed Deposit Fixed Deposit Fixed Deposit

Compounding frequency Yearly Yearly Yearly Yearly

Interest rate 9% 7.30% 6.00% 6.25%

Annual yield 9% 7.50% 7.45% 7.45%
Maturity amount Rs. 10900 Rs. 10,750 Rs. 10,745 Rs. 10,745
Mode of interest paid ECS, By Cheque ECS, By Cheque ECS, By Cheque ECS, By Cheque
Deposit Features
Recurring , Recurring , Recurring ,
Type Reinvestment
Reinvestment Reinvestment Reinvestment
Provider type Corporate Private Bank Private Bank Private Bank
Minimum Balance Rs. 10,000 Rs. 10,000 Rs. 10,000 Rs. 10,000
Penalty for early closure 0.00% 0.00% 0.00% 1.00%
Eligibility
Resident Indian, Resident Indian, HUF, Resident Indian, HUF,
Eligibility Resident Indian, HUF, NRI
HUF, NRI NRI NRI
 Cumulative Deposit Plan of NBFC’s

MMFS TATA Motors Jindal Steel & Power Godrej Industries Ltd
Period 3 year 3 year 3 year 3 year
Min Amt
10000 20000 10000 10000
(Rs.)
Rate Of 10.00% 11.00% 11.00% 8.50%
Interest
Maturity
Value 13310 27696 13849 12596
(Rs.)
Yield(p.a 11.03% 12.83% 12.83% 11.83%
.)
Addl to
Senior 0.25% 0.50% 0.25% 0.25%
Citizen
 Graphical Report
Interest Rate
MMFS AXIS HDFC Bank ICICI
Interest rate 9% 7.30% 6.00% 6.25%
 Graphical Report
Annual Yield
MMFS AXIS HDFC Bank ICICI
Annual yield 9% 7.50% 7.45% 7.45%
 Graphical Report
Maturity Amount
HDFC
MMFS AXIS ICICI
Bank
Maturity amount
10900 10,750 10,745 10,745
(Rs)
 Findings & Observation
 The benefit of fixed deposit offered by MMFS is more
beneficial than the other private banks under study.
 MMFS offers various schemes which gives the investor
large options to chose from.
 MMFS focuses not only on the urban areas but also on
the rural areas which makes them well known all over
the country.
 The scheme offered by MMFS is not only easy and
convenient but also very beneficial.
 Conclusion
 Most of the business group people invest majority of their
earnings into securities and shares rather than fixed return
investments plans.

 The service class people mostly believe in depositing in fixed

deposit schemes rather than investing in other risky
investments.

 My aim of comparing MMFS fixed deposit scheme over the

other fixed deposit schemes offered by other financial
institutions is completed to an extent.
 Limitations
 Some of the websites did not provide updated interest
rates which led to many complications and confusions.

 Due to the time constraint it was not possible to show

other fixed deposit comparisons.

 Adequate proofs were not provided by the clients

required for opening FD account with MMFS.
Suggestions & Recommendations
 MMFS should undertake different promotional
strategies in order to create awareness among the
public at large.

 Television and door to door advertising should

be adopted apart from telephonic marketing.
THANK YOU