correct satya prakash sharma 11111.doc2255.doc

7/27/2019 correct Satya Prakash Sharma 11111.doc2255.doc

http://slidepdf.com/reader/full/correct-satya-prakash-sharma-11111doc2255doc 1/122

CONTENT

CHAPTER 1 INTRODUCTION

1.1 INVESTMENT AVENUES AND ALTERNATIVES . 1-8

Non-marketable Financial Assets

1.1.2 Equity Shares

1.1.3 Bonds

1.1.4 Money Market Instruments

1.1.5 Mutual Funds

1.1.6 Life Insurance1.1.7 Real Estate

1.1.8 Precious Objects

1.1.9 Financial Derivatives

CHAPTER 2 LITERATURE REVIEW 9-49

2.1 Significance of Study

2.2 Objective of Study

CHAPTER 3 COMPANY PROFILE 50-53

3.1 PRODUCT OFFERING

3.1.1 Trading Portal

3.1.2 Financial Products

3.1.3 Value-Added Services

3.1.4 Credit Cards

3.1.5 Gold coins retailing

CHAPTER 4 TRADING PORTAL 54-59

4.1 DEMAT ACCOUNT

CHAPTER 5 FINANCIAL PRODUCTS 60-81

MUTUAL FUNDS

5.1.1 Open end versus Closed end Schemes

5.1.2 Constitution of a Mutual Fund

1



5.1.3 Types of a Mutual Funds

5.1.4 How to invest in Mutual Fund

5.1.5 Nature of Income Distribution to Investors

5.1.6 Different schemes of Reliance Mutual fund

5.2 LIFE INSURANCE

5.2.1 Tax Benefits of Insurance

5.2.2 Claims

5.2.3 Plans

5.3 GENERAL INSURANCE

5.3.1 Types of General Insurance

5.4 BASIC FEATU RES5.5 VALUE ADDED FEATURES

5.6 POLICY FEATURES

CHAPTER 6 OBJECTIVE AND CONCLUSIONS 82-109

6.1 OBJECTIVE

6.2 METHODOLOGY

6.3 SWOT ANALYSIS

6.4 MY ROLE IN THE ORGANISATION

6.5 LIMITATION

6.6 LEARNINGS

CHAPTER 7 CONCLUSION AND RECOMMENDATIONS 110-112

7.1 RECOMMENDATIONS

7.2 KEY ISSUES AND CONCLUSIONS

A.1: BIBLOGRAPHY 113

A.2: ANNEXURE 114

2



INTRODUCTION

Whether it’s retiring early, saving for children’s education, paying off a loan or

to l ive a secured and sa t i s f ied l i fe everyone has dreams they can achieve by

invest ing their savings. However, the quest ion that ar ises is that , should one

leave his money tucked away in the bank or p lough i t in to the s tock market

where the potential for higher returns is greater but the chances of losing money

is h igher? Deciding where to inves t depends on one`s a t ti tude towards r i sk

(one`s capacity to take risk and one`s tolerance towards risk) and the investment

horizon and non-availability of guaranteed-return investment products.

In such a scenario, investing in equity, which offers returns that are higher than

the inflation rate, help to build wealth and to improve the standard of l iving. I t

is f ine that s tock market f luctuates over t ime. At present as far as the world

ec on omy is c on ce rn ed i t is o n a b oo m. As s oo n a s gl ob aliz at ion an d

liberalization has come into act i t has well shaped the economy. India has turned

out to be the hot destination for the money investors and this has resulted growth

in the sensex . I t was never hoped before that BSE wil l ever touch the mark of

1 60 00 p oi nt s. B ut o nl y d ue t o t he n ew e co no mi c o pp or tu ni ti es a nd t he

confidence of people in India’s economic future it has been successful .Investing

in equity is the way to earn money and to fulf il l the dreams. The r isk involved

with investing in equity can be moderated by careful s tock select ion and close

monitoring.

3



INVESTMENT AVENUES AND ALTERNATIVES

Inves tment a lt erna tives vary f rom f ixed income to var iable income which

includes RBI bonds, government securi t ies , f ixed deposi t , equity investments,

property and so on.

In recent years the 6.5 percent tax-free RBI Bonds have become a very popular

saving instrument -- especially amongst individuals. Till 1996, these bonds gave

returns of 10 per cent. This came down to 9 per cent and then 8 percent and then

in 2003 i t was reduced to 6.5 per cent ( tax free) . Nowadays, 8 percent taxable

Government of India bonds are also doing well to at t ract investors who want

safe and higher yield.

However, with inflation at nearly 4.5%, the return offered by these instruments

were st i l l a t t ract ive. However, with the scrapping of the tax-free bonds, safe

investment options for individuals have become very limited and people are now

c ho os in g t o g o w it h e it he r p os t o ff ic e s av in g s ch em es o r e qu it y r el at ed

instruments.

Take a look at what is happening. Debt funds, which were said to be relat ively

risk-free, are giving very less returns. Monthly Income Plans offered by mutual

funds are also not attractive as their portfolio is made up of 80 percent debt and

20 percent equity. With debt giving very less returns and returns from equity

becoming stagnant, the returns from MIPs are also very attractive. The returns

offered by MIPs a re tot al ly dependant upon the type o f secur ity and deb t

instruments held by the fund But with recent rally in the stock market, very few

people are now going for MIPs and have a very positive sentiment about the

4



market and would like to stay with the market for long. But continuously we stil l

have a single question in mind:

So where should individuals park their money now?

"The 8 per cent taxable RBI Bonds seem to be one of the best options right now

looking for a safe avenues."

The person in the 30 percent tax bracket , the 8 per cent RBI bonds wi l l g ive

re turns of approximately 5 .6 per cent . Though th is i s much lower than the

previous 6.5 percent, i t is still a better than most other options. If you are a

senior ci t izen, the Senior Cit izens Savings scheme offering a 9 Percent yearly

interest is a good investment option. The scheme was announced in the Budget

2006-2007 and was meant for people above the age of 60. However, this scheme

has a maximum deposi t l imit of Rs. 15 lacs while RBI Bonds do not have any

limit. In this case, the term for deposit is five years with a facility for premature

withdrawal . The 9 percent re turns are subjec t to tax, so i f you are in the 30

percent tax bracket, you will effectively get returns of 6.3 per cent.

Another opt ion can be F loat ing Rate Bond Fund o ffered by mutua l funds .

Basical ly, these funds invest in f loat ing rate instruments and therefore have a

direct correlation to interest rates. If interest rates go up the returns from these

funds rise and returns fall with a fall in interest rates. This is unlike debt funds,

where there is a reverse relationship between interest rates and returns. A rise in

interest rates results in a fall in returns. In the current scenario, these funds are

l ikely to give returns of 5 percent to 5.5 percent. The dividends are tax-free in

the hands of the inves tor and most impor tantly , there i s complete l iquidi ty.

Again , there i s no l imi t on the amount tha t can be deposi ted . Also , there i s

hardly any volati l i ty making i t a safe option. If you are wil l ing to take a bi t of

5



r isk, you can divide your portfol io in such a way that 60 percent is invested in

f loa t ing ra te bond funds and the remaining 40 percent in equi ty . That ' s l ike

having an MIP except that instead of 80 percent in debt and 20 percent in equity,

here the 60 percent is in floating rate bond funds. Such a portfolio can give you

returns of aprox. 8.5 % to 9.5 %.

The NSCs and the Kisan Vikas Patras give returns of 8 percent so for those in

the 30 percent tax bracket, i t works out to 5.6 percent. Here too there is no limit

on the amount of deposit . However, here the interest is posted only at the t ime

of maturity. So it is not a good option if you want regular returns. On the other

hand, RBI Bonds give returns every six months or half yearly. So, depending

upon their r isk profi le and need for l iquidi ty, one wil l have to decide on their

portfolio. For anyone below 35 years, i t is recommend that one should invest

some part of there portfol io in RBI Bonds and in NSCs, KVPs as a long term

investments and the remaining in combinat ion of f loat ing rate bond funds and

equity But for those above 35, i t is advocate that one should look at nearly 40

percent in RBI Bonds, 30 percent in NSCs, KVPs, hence giving safe and regular

income. And the remaining 30 per cent in f loat ing rate bond funds and equity.

For those above the age of 60, 40 percent must be put in the Senior Ci t izens

Scheme (of course , th is i s up to a maximum l imi t of Rs 15 lakh) , another 40

percent in RBI Bonds and the remaining 20 percent in floating rate bond funds,

so that one has some liquidity.As an investor one has a wide array of investment

avenues available to one

6



Non-marketable Financial Assets - A g oo d p or ti on o f f in an ci al a ss et s i s

represented by non-marketable financial assets. These can be classified into the

following broad categories:

• Bank deposits

• Post office deposits

•Company deposits

• Provident fund deposits

Equity Shares - E qu ity sha res r epresent ownersh ip cap it al . As an equ ity

shareholder , you have an ownership s take in the company. This essentia lly

means that you have a residual interest in income and wealth. Perhaps, the most

romantic among various investment avenues, equity shares are classified into the

following broad categories by stock market analysts:

• Blue chip shares

• Growth shares

7

Fig1.1 Investment Alternatives

Investment

Avenues

Equity SharesNon-

Marketable

Bonds

MoneyMarket

Instruments

Mutual

Fund

Life Insurance

Policies

Real Estate PreciousObjects

Financial



• Income shares

• Cyclical shares

• Speculative shares

Bonds - Bonds or debentures represent long-term debt instruments. The issuer of

a bond promises to pay a stipulated steam of cash flow. Bonds may be classified

into the following categories:

• Government securities

• Government of India relief bonds

• Government agency securities

• PSU bonds

• Debentures of private sector companies

• Preference shares

Money Market Instruments - Debt instruments which have a maturi ty of less

than one year a t the t ime of i ssue are ca l led money market ins t ruments . The

important money market instruments are:

•Treasury bills

• Commercial paper

• Certificates of deposits

Mutual Funds - Instead of direct ly buying equity shares and/or f ixed income

ins t ruments , you can par t ic ipa te in var ious schemes f loa ted by mutual funds

which, in turn, invest in equity shares and f ixed income securi t ies . There are

three broad types of mutual fund schemes:

• Equity schemes

• Debt schemes

• Balanced schemes

Life Insurance - In a b ro ad s en se , l if e in su ra nce ma y b e v ie we d as an

investment. Insurance premiums represent the sacrifice and the assured sum the

benefit . The important types of insurance policies in India are:

• Endowment assurance policy

• Money back policy

8



• Whole life policy

• Term assurance policy

Real Estate - For the bulk of the inves tors the most impor tant asse t in the i r portfolio is a residential house. In addition to a residential house, the more

affluent investors are likely to be interested in the following types of real estate:

• Agricultural land

• Semi-urban land

• Time share in a holiday resort

Precious Objects - Precious objects are i tems that are general ly small in s ize

but highly valuable in monetary terms. Some important precious objects are:

• Gold and silver

• Precious stones

• Art objects

Financial Derivatives - A f inancial derivative is an instrument whose value is

derived from the value of an underlying asset. It may be viewed as a side bet on

the asset . The most important f inancial derivat ives from the point of view of

investors are:

• Options

• Futur\es

Since every individual would like to earn return on their investment but where to

inves t has a lways been a problem. There has a lways been a confus ion as to

which instrument to invest , which instrument wil l give me higher returns, etc .Even now nuclear families are in and so are longer life spans. Even inflation is

increasing and so do the standard of life, medical costs, and other things. In such

a scenario, one need to think as to how he wil l take care of al l his future needs

and build up a corpus that wil l not only take care of routine expenses but also

provide for extra costs, especially of health care. One need to have a corpus of

funds , pos t -re ti rement , which wi ll g ive him c lose to 100% of the sa lary to

preserve the lifestyle he has grown to enjoy.

9



10



INDUSTRY PROFILE

RELIANCE-ANIL DHIRUBHAI AMBANI GROUP

Founder

Dhirubhai H. Ambani

RELIANCE GROUP OF COMPANIES

Growth through Vision

"Growth has no limit at Reliance. I

keep revising my vision.

Only when you can dream it, you

can do it."

11



The Reliance – Anil Dhirubhai Ambani Group is among India’s top three private sector business

houses on all major financial parameters, with a market capitalisation of Rs100,000 crore (US$

22 billion), net assets in excess of Rs 31,500 crore (US$ 7 billion),and net worth to the tune of Rs

27,500 crore (US$ 6 billion).

Across different companies, the group has a customer base of over 50 million, the largest in

India, and a shareholder base of over 8 million, among the largest in the world.

Through its products and services, the Reliance - ADA Group touches the life of 1 in 10Indiansevery single day. It has a business presence that extends to over 4,500 towns and 300,000

villages in India, and 5 continents across the world.

The interests of the Group range from communications (Reliance Communications) and financial

services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance

Energy), infrastructure and entertainment.

12



INDUSTRY SRTUCTURE

13



COMPANY PROFILE

Reliance Capital Ltd

Part of Reliance - Anil Dhirubhai Ambani Group.

Reliance Capital is one of India’s leading and fastest growing private sector financial services

companies, and ranks among the top 3 private sector financial services and banking companies.

In terms of net worth. Reliance Capital has interests in asset management and mutual funds, life

and general insurance, private equity and proprietary investments, stock broking and other

activities in financial services.

RCL is registered as a depository participant with National Securities Depository Ltd (NSDL)

and Central Depository Services Ltd (CDSL) under the Securities and ExchangeBoard of India

(Depositories and Participants) Regulations, 1996.

RCL has sponsored the Reliance Mutual Fund within the framework of the Securities and

Exchange Board of India (Mutual Fund) Regulations, 1996.

RCL primarily focuses on funding projects in the infrastructure sector and supports the growth of

its subsidiary companies, Reliance Capital Asset Management Limited, Reliance Capital Trustee

Co. Limited, Reliance General Insurance Company Limited and Reliance Life Insurance

Company Limited.

As of March 31, 2005, the company’s investment in infrastructure projects stood at Rs. 1071

Crores. The investment portfolio of RCL is structured in a way that realizes the highest post-tax

return on its investments.

14



BOARD OF DIRECTORS

Amitabh Jhunjhunwala, Vice-Chairman

Amitabh Jhunjhunwala, an FCA, has over 23 years of experience in finance and the capital

markets. Amitabh is also the Director of Reliance Capital Asset Management Limited.

Shri C. P. Jain

Shri C.P. Jain, aged 60 years, is the former Chairman and

Managing Director of National Thermal Power Corporation (NTPC).

15



Rajendra Chitale, Independent Director

Rajendra P. Chitale, an eminent Chartered Accountant, is the Managing Partner of M/s M.

P.Chitale & Co. He is a Director on Boards of the National Stock Exchange of India (NSE),

Asset Reconstruction Company (India) Ltd, Hinduja TMT Ltd and Gujarat Ambuja Cements Ltd.

He is also a member of the Advisory Group on Derivatives and the Takeover Panel, Securities

and Exchange Board of India, as well as the Company Law Advisory Committee of the

Government of India.He has also served on the boards of Life Insurance Corporation of India,

Unit Trust of India, SBI Capital Markets Ltd and Small Industries Development Bank of India..

16



Reliance Money

17



“Reliance Money (Distribution House)”

• The official launch of Reliance Money was announced on 3rd May 2007.

• Reliance Money is a group company of Reliance Capital; One of India's leading and

fastest growing private sector financial services companies.

• Ranking among the top 3 private sector financial services and banking companies, in

terms of net worth.

• Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.

• Reliance Money is a comprehensive electronic transaction platform offering a wide range

of asset classes.

• Its endeavor is to change the way India transacts in financial markets and avails financial

services.

Reliance Money currently deals in the following financial products:

Equities /IPO’s / Forex / Commodities.

18



1. Mutual funds (every Asset Management company in market).

2. Life Insurance (RELIANCE, HDFC, TATA, SBI & LIC).

3. General Insurance (RELIANCE, NEW INDIA, IFFCO TOKYO ROYALE

SUNDARAM).

4. Credit Cards.

19



1. Loans.

2. Portfolio Investments.

3. Money Transfer

4. Offshore investments

RELIANCE MONEY SHARE TRADING ACCOUNT

Reliance Money unlike other brokering houses has introduced a new prepaid system of brokerage

for the share trading in which it provides the lowest form of brokerage charged from an investor.

Reliance money has introduced three prepaid schemes for the stock market investors which work

in the following way:

20



FOR LARGE INVESTORS

Limit Card Validity

Whichever is

Earlier

Validity

Whichever is

Earlier

Turnover Limit Turnover Limit

Time

Validity

Turnover

Validity

Intra Day

Turnover

Delivery

Turnover

500 2 Months 1 Cr. 90 Lac 10 Lac

1350 6 Months 3 Cr. 2.7 Cr. 30 Lac

2500 12 Months 6 Cr. 5.4 Cr. 60 Lac

For small investors :

Reliance had an under scheme of Rs.500 in which-

• Time validity is of one year.

• Turnover limit is Rs. 5 Lacs (Either you can do Intraday or Delivery, no fix ratio).

• Margin of 5 times on Intraday and no Margin on Delivery( Valid for all the four

schemes).

Apart from this the A/c opening charges are Rs. 750 one time and four A/c’s namely Trading,

Demat, Forex and Commodity are provided to the investor.

Reliance Money is offering a brokerage charge of 45 paisa on every Rs 100 worth of delivery-

based trades, and 5 paisa on non-delivery trades, which is the lowest in the industry so far.

Currently, the average brokerage charge for delivery-based trades is anywhere between 15 paisa

and 25 paisa for every trade worth Rs 100, while for non- delivery trades it is around 3-5 paisa.

21



Following are also the main features of this share trading account provided by Reliance

money:-

1. Flexibility to access reliance money services in multiple ways through Internet, Transaction

kiosks, Call and transact or seek assistance through Business partners.

2. This is a safeguarded account as reliance money provides an electronic token that flashes a

unique security number in every thirty two seconds This number works as a third level

password (including the login ID and Password) keeping the account sage from any

unauthorized access.

1. Flexibility to transact in Equity, Equity and commodity Derivatives, Offshore investments,

mutual funds, IPO’s, Life insurance and General Insurance either through online or through

channel partners.

2. With the help of this A/c investors can access to their banking, trading and Demat accounts

without the hassle of writing cheques. Reliance money had tied up with UTI , HDFC and

IDBI bank to link this share trading account for the investors.

22



3. Annual maintenance charge of just 50 /- per annum and free on mobile Tips.These were some

of the features of “Reliance money” share trading account.

business associates of R-Money.

23



Document Photocopies Required for Demat Account opening:-

(A) Three passport size photographs for first holder (self-attested).

(B) One passport size photograph if second holder.

(C) One passport size photograph if third holder.

(D) For identification Proof- Voter ID Card/ Driving License/ Passport/ PAN Card (Compulsory)

any one.

(E) For residential proof:- Bank statement/ Voter ID Card/ Ration Card/ Driving License/

Passport/ Telephone or Electricity Bill statement (any one).

(F) One cancelled cheque leaf (For MICR No. record) if he had account in any of three banks.

(G) Later Bank Statement/ Front page of passbook (Showing Name, Address, A/c No.)

(H) Cheque in favour of ‘Reliance Money Limited; (Rs.750+ prepaid card of customer choice).

Reliance Money is allowing trading in four ways:

1) Online

2) Offline( Through Franchise, they take Rs.12 per script)

3) Call centre

24



4) Trading Kiosk (Charging .50 paisa per minute).

25



Working of Reliance money

At the Macro Level

26



HIERARCHY IN RELIANCE MONEY

EXECUTIVE DIRECTOR

Mr. Vikrant Gugnani

CHIEF EXECUTIVE OFFICER

Mr. Kapil Wali

HEAD OF SALES

Mr. Anshul Arzare

ZONAL HEAD

Mr. Manav Singh

REGIONAL HEAD

Mr. Arvind singh

BRANCH HEAD

Mr. Rajesh chaubey

CSE / CM / RM

27



COMPANY PROFILE OF RELIANCE

28



RELIANCE INDUSTRIES LIMITED

Reliance Group Holdings has grown from a small office data-processing equipment firm in 1961

into a major insurance and financial-services group in one generation under one chief.

Reliance's insurance operations constitute the nation's 27th-largest property and casualty

operation. The parent company also includes a development subsidiary in commercial real estate.

Reliance's international consulting group contains several subsidiaries in energy, environment,

and natural resources consulting. A financial arm invests in other businesses, primarily television

stations.

Reliance Insurance started as the Fire Association of Philadelphia in 1817, organized by 5 hose

and 11 engine fire companies. It became the nation's first association of volunteer fire

departments.

Business got a boost as a result of the Great Chicago Fire of 1871.The association soon

developed a field of agents to write policies across the country. For the first two years,

shareholders received dividends twice a year of $5 a share, which increased gradually to $10 in

1876.

29



In 1972, the Reliance insurance group divided its pool so that Reliance Insurance Company and

its subsidiaries handled most standard lines, while United Pacific Insurance Company handled

the nonstandard and other operations.

In 1977, the company moved into real estate, forming Continental Cities Corporation, which

became Reliance Development Group, Inc. This division handled all real estate operations of the

parent company and other subsidiaries.

Reliance Capital Group, L.P. constituted the investment branch of the Reliance conglomerate.

In December 1989, Reliance Capital sold its investment, Days Corporation, parent company of

Days Inn of America, the world's third-largest hotel chain; it had been purchased in 1984.

Reliance Industries Limited. The Group's principal activity is to produce and distribute plastic

and intermediates, polyester filament yarn, fibre intermediates, polymer intermediates, crackers,

chemicals, textiles, oil and gas. The refining segment includes production and marketing

operations of the Petroleum refinery. The petrochemicals segment includes production and

marketing operations of petrochemical products namely, High and Low density Polyethylene.

30



"Growth has no limit at Reliance. I keep revising my vision.Only when you can dream it, you can do it."

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader

in the materials and energy value chain businesses.

He is credited to have brought about the equity cult in India in the late seventies and is regarded

as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'.

The Reliance Group is a living testimony to his indomitable will, single-minded dedication and

an unrelenting commitment to his goals.

RELIANCE MUTUAL FUND

This groupdominates this key areain the financial sector..This megabusiness houses show that it

has assetsunder management ofRs. 90,938 crore(US$ 22.73 billion) andan investor base of

over6.6 million (Source:www.amfiindia.com).Reliance’s mutual fundschemes are managed

byReliance Capital AssetManagement LimitedRCAM), a subsidiary of

Reliance Capital Limited,which holds 93.37% ofthe paid-up capitalof RCAM.

31



The company notchedup a healthy growth ofRs. 16,354 crore(US$ 4.09 billion)in assets under

management in February2008 and helped propelthe total industry-wideAUM to Rs. 565,459

crore (US$ 141.36 billion)(Source: indiainvestments.com). A sharp rise infixed maturity plans

(FMPs) and collection ofRs. 7000 crore (US$ 1.75 billion) through newfund offers (NFOs)

created this surge. In AUrankings, Reliance continues to be in thenumber one spot.

India's Best Offering: Reliance Mutual Fund

Investing has become global. Today, a lot of countries are waking up to the reality that in

order to gain financial growth, they must encourage their citizens to not only save but also invest.

Mutual funds are fast becoming the mode of investment in the world.

In India, a mutual fund company called the Reliance Mutual Fund is making waves. Reliance is

considered India's best when it comes to mutual funds. Its investors number to 4.6 billion people.

Reliance Capital Asset Management Limited ranks in the top 3 of India's banking companies and

financial sector in terms of net value.

The Anil Dhirubhai Ambani Group owns Reliance; they are the fastest growing investment

company in India so far. To meet the erratic demand of the financial market, Reliance Mutual

Fund designed a distinct portfolio that is sure to please potential investors. Reliance Capital Asset

Management Limited manages RMF.

32



Vision

&

Mission

33



Reliance Mutual Fund is so popular because it is investor focused. They show their dedication by

continually dishing out innovative offerings and unparalleled service initiatives. It is their goal to

become respected globally for helping people achieve their financial dreams through excellent

organization governance and customer care. Reliance Mutual fund wants a high performance

environment that is geared at making investors happy.

RMF aims to do business lawfully and without stepping on other people. They want to be able to

create portfolios that will ensure the liquidity of the investment of people in India as well as

abroad. Reliance Mutual Fund also wants to make sure that their shareholders realize reasonable

profit, by deploying funds wisely. Taking appropriate risks to reach the company's potential is

also one of Reliance Mutual Fund's objectives.

Schemes

To make their packages more attractive, Reliance Mutual Fund created proposals called The

Equity/ Growth scheme, Debt/Income Scheme, and Sector Specific Scheme.

Debt/Income Scheme, and Sector Specific Scheme.

The Equity/ Growth scheme give medium to long term capital increase. The major part of the

investment is on equities and they have fairly high risks. The scheme gives the investors varying

options like, capital augmentation or dividend preference. The choices are not deadlocked

because if you want you may change the options later on.

Providing steady and regular income is one of the Debt/Income Scheme's primary goals. The

Debt/Income scheme has in its portfolio government securities, corporate debentures fixed

income securities, and bonds. returns on Sector Specific Scheme are dependent on the

performance of the industry at which your money is invested upon. Compared to diversified

34



funds this is a lot more risky and you will need to really give your time on observing the market.

Although RMF is gaining good ground in the financial market, remember that they are a risk

taking bunch. They give higher profit because they take a lot of risks. So, if you are faint hearted,

then Reliance Mutual Fund is not for you.

GROWTH OF RELIANCE MONEY THROUGH RECOGNITION

Growth through Recognition

Reliance has merited a series of awards and recognitions for excellence for businesses and

operations.

Corporate Ranking and Ratings:

Reliance featured in the Fortune Global 500 list of ‘World’s Largest Corporations’ for the fourth

consecutive year.

• Ranked 269th in 2007 having moved up 73 places from the previous year.

• Featured as one of the world’s Top 200 companies in terms of Profits.

• Among the top 25 climbers for two years in a row.

35



• Featured among top 50 companies with the biggest increase in Revenues.

• Ranked 26th within the refining industry.

Reliance is ranked 182nd in the FT Global 500 (up from previous year’s 284th rank).

• PetroFed, an apex hydrocarbon industry association, conferred the PetroFed 2007 awards in

the categories of “Refinery of the Year” and “Exploration & Production - Company of the Year”.

• Brand Reliance was conferred the “Bronze Award” at The Buzziest Brands Awards 2008,

organized by agencyfaqs!

•

Institute of Economic Studies conferred the “Udyog Ratna” award in October 2007 for contributions to the industry.

• Chemtech Foundation conferred the “Hall of Fame” in February 2008 for sterling

contributions to the industry.

• Chemtech Foundation conferred the “Outstanding Achievement - Oil Refining” for work at

the Jamnagar Manufacturing Division.

Petroleum Federation of India conferred the “Refinery of the Year Award - 2007” to Jamnagar

Manufacturing Division

• “The Plastics Export Promotion Council - PLEXCOUNCIL Export Award” in the category

of Plastic Polymers for the year 2006-2007 was awarded to Reliance being the largest exporter in

this category.

HEALTH:-

• Jamnagar Manufacturing Division was conferred the “Golden Peacock Award for

Occupational Health & Safety - 2007” by Institute of Directors.

• Jamnagar Manufacturing Division was conferred the “ICC Award for Water Resource

Management in Chemical Industry”.

36



• Jamnagar Manufacturing Division was conferred the “Good House Keeping Award” from

Baroda Productivity Council.

• Jamnagar Manufacturing Division was conferred the “BEL-IND” Award for the best

scientific paper at the 58th National Conference of Occupational Health.

• Naroda Manufacturing Division was conferred the “Safety Award and Certificate of

Appreciation” presented by Gujarat Safety Council & Directorate of Industrial Safety & Health,

Gujarat State for the recognition of safety performance at the 29th State Level Annual Safety

Conference.

• Dahej Manufacturing Division received “BSC 5-Star” rating from British Safety Council,

UK.

• Dhenkanal Manufacturing Division received the “2nd Prize for Longest Accident Free

Period” from the Hon’ble Minister of Labour, State of Orissa.

• Hoshiarpur Manufacturing Division bagged the First Prize in “Safety in Punjab”, organized

by Punjab Safety Council.

• Patalganga Manufacturing Division won the “Gold Medal at CASHe (Change Agents for

Safety, Health and Environment) Conference”. It also won the III Prize in Process Management

category for Presentation on Safety through Design in chemical process industry in Petrosafe

2007 Conference.

• Kurkumbh Manufacturing Division won the “Greentech Safety Award silver trophy” for

outstanding achievement in safety management in chemical sector.

• Hazira Manufacturing Division received the “TERI Corporate Environmental Award

(Certificate of Appreciation)” for PET recycling project.

Nagothane Manufacturing Division received the “Shrishti G-Cube Award for Good Green

Governance” from Minister for Commerce and Industry, on World Earth Day.

37



Training and Development

Jamnagar Refinery was adjudged the winner of the “Golden Peacock National Training Award

-2007”.

• Patalganga Manufacturing Division won the “ASTD (American Society for Training &

Development) Excellence in Practice Award” for innovative practice titled Learning Function’s

role as Business partner: Empowering people with Knowledge to achieve Business Goals.

Reliance won the CNBC TV-18 instituted Jobstreet.com Jobseekers’ Employer of Choice Award.

Energy Excellence:-

• Exploration & Production (E&P) Division won “The Infraline Energy Excellence Awards

2007: Hydrocarbon Columbus Award for Excellence in Petroleum Exploration”.

• Patalganga Manufacturing Division won the First Prize in “Energy Conservation in State of

Maharashtra” organized by Maharashtra Energy Development Agency (MEDA).

• Jamnagar Manufacturing Division won the “Oil & Gas Conservation Award -2007” from

the Centre for High Technology, Ministry of Power & Natural Gas for the excellent performance

in reduction/elimination of steam leaks in the plant.

• Jamnagar Manufacturing Division was the recipient of the “Infraline Energy Award-2007”

by Ministry of Power.

• Hazira Manufacturing Division won the Government of India Energy Conservation Award

(2007) conferred by the Bureau of energy efficiency and Ministry of Power.

• Hazira Manufacturing Division was adjudged “Excellent Energy Efficient Unit” at Energy

Summit - 2007 by CII.

Vadodara Manufacturing Division received the CII award for “Excellence in Energy

Management - 2007” as energy efficient unit. This division also received the 2nd prize in

38



“National Energy Conservation Award –2007” from Bureau of Energy efficiency, Ministry of

Power, Government of India.

The Company’s manufacturing divisions at Vadodara and Hazira were honoured with CII-

National award for excellence in water management - 2007 as water efficient unit in “Within the

fence” category. Additionally, Hazira Manufacturing Division was honoured as water efficient

unit “Beyond the Fence” category.

Quality:-

• For the first time ever, globally, a petrochemical company bagged the “Deming Prize for

Management Quality”. “The Quality Control Award for Operations Business Unit 2007” was

awarded to the Hazira Manufacturing Division for Outstanding Performance by Practicing Total

Quality Management.

• “QUALTECH PRIZE 2007”, which recognizes extraordinary results in improvement and

innovation, was won by Hazira Manufacturing Division for its Small Group Activity Project.

• Vadodara Manufacturing Division’s Polypropylene-IV (PP-IV) plant was conferred the

“Spheripol Process Operability Award-2006” for the highest operability rate with an on stream

factor 98.97% by M/s. BASELL, Italy.

Allahabad Manufacturing Division won the “Excellent Category Award” at National Conventionof Quality Circle (NCQC) - 07.

Six-Sigma:-

39



• Lean Six sigma project on “Reducing retention time of caustic soda lye tankers at

Jamnagar” won the 1st prize in the national level competition held by Indian Statistical Institute

(ISI).

• Patalganga Manufacturing Division’s Six Sigma Project on Improve Transfer Efficiency for

Automatic winders in PFY won the 2nd Prize for “Best design for Six Sigma Project in

International Six Sigma Competition” organized by IQPC (International Quality and Productivity

center).

• Barabanki Manufacturing Division won the 3rd prize in “All India Six Sigma case study

contest 2008” for the Case study on “Reduction of waste of Plant 2 from 16% to 8%”.

• Hoshiarpur Manufacturing Division won the 2nd prize in “Six Sigma competition at

National Level” organized by ISI and Quality Council of India (in manufacturing category),

while Dhenkanal and Barabanki Manufacturing Divisions won the 3rd prize.

Vadodara Manufacturing Division’s Six Sigma project won the 1st prize as the “Best Six Sigma

project” at National level by CII.

Technology, R&D and Innovation:-

• Vadodra Manufacturing Division’s R&D bagged an award from Indian Institute of

Chemical Engineers for Excellence in Process / Product Development for the work on “Eco

friendly Process for Acetonitrile Recovery”.

• “DSIR National Award for R&D Efforts in Industry (2007)” was conferred on Hazira

Manufacturing Division for the Cyclehexane Recovery Project.

• Patalganga Manufacturing Division’s Project titled Augmentation of ETP and use of biogas

in Fired heaters won the “Best Innovative Project” from CII.

40



• Reliance bagged the “Innovation Award at Tech Converge 2007” for innovative

developments in short-cut fibres.

Hazira Manufacturing Division won the “Golden Peacock Innovation Award - 2007” for its

Cyclohexane Recovery Process.

Information Technology:-

• “CIO of the Year Award” for the best IT-enabled organization in India for the Year 2007.

• “Ones to Watch - CIO - USA Award”, for figuring among the top 20 organizations

fostering excellence in IT team.

• “The Skoch Challenger Award” conferred for the best IT Head (managing the most IT

enabled organization) of the Year 2007.

• “Best IT Implementation Award”, by PC Quest for Knowledge Management Systems

portal (KMS).

• “CIO Excellence Award” for Chemical Industry Information Technology Forum for

exemplary Information Technology implementation amongst global chemical companies.

“CTO Forum Hall of Fame Award” for the best CIOs in India for not only providing service to

their

41



PRODUCTS: RELIANCE MONEY

The products on offer from Reliance Mutual Fund fall into four main categories: equity, debt,

sector specific and ETF (Exchange Traded Fund).Each taps into a specific audience profile

fulfilling their varying needs. Under the equity category, Reliance has118 SUPERBRANDS

sixteen schemes with Reliance Growth Fund and Reliance Vision Fund as its flagship schemes.

Reliance Equity Opportunities Fund is a scheme which operates in the multi-cap/multi-sector

segment; Reliance Equity Fund is a long-short fund, Reliance Quant plus Fund is a quant fund.

Reliance offers investments in banking, power, media, entertainment and pharmaceuticals;

Reliance Tax Saver Fund and Reliance Equity-Linked Savings Fund – Series 1 are tax saving

schemes; an NRI-dedicated equity scheme is tailored for non-resident Indians. Reliance Regular

Savings Fund is an asset-allocation fund with three options. Under the debt and liquid categories,

Reliance has liquid funds, liquid plus funds, income funds, an NRI-dedicated debt fund, gilt

funds, fixed maturity plans and an interval fund. In the hybrid category, Reliance Monthly

income Plan is a popular option

Reliance understands that investments in mutual fund share a function of knowledge

dissemination and awareness of products amongst potential investors. In building its own base of

assets under management it will necessarily have to carry the entire mutual fund industry.

Towards this end Reliance has launched a two-pronged initiative. In the first pincer it has created

a formidable network of 26,000 distributors including some of the biggest names in the banking

sector. This who’s who of the financial industry comprises such giants as Citibank, Standard

Chartered, HSBC, ICICI, AXIS, Bank of Baroda, Central Bank of India, Allahabad Bank and

fund houses such as JM, DSP Merrill Lynch and Karvy in addition to a massive infrastructure of

direct financial investment officers. This prodigious effort is supplemented by the brands’ captive

network of 120 branch offices and 30 financial centers. In the second prong, Reliance has created

42



a series of information packed presentations which help dispel misinformation Group. This mega

business house dominates this key area in the financial sector. Figures for March 2008 show that

it has emerged as the top Indian mutual fund with average assets under management of Rs.

90,938 crore (US$ 22.73 billion) and an investor base of over 6.6 million

(Source:www.amfiindia.com).

Reliance’s mutual fund schemes are managed by Reliance Capital Asset Management Limited

(RCAM), a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of

RCAM. The company notched up a healthy growth of Rs. 16,354 crore (US$ 4.09billion) in

assets under management in February2008 and helped propel the total industry-wide AUM to Rs.

565,459 crore (US$ 141.36 billion) (Source: indiainvestments.com). A sharp rise in fixed

maturity plans (FMPs) and collection of Rs. 7000 crore (US$ 1.75 billion) through new fund

offers (NFOs) created this surge. In AUM rankings, Reliance continues to be in the number one

spot.

Reliance was the first fund house to launch sector funds with flexibility to invest in a range of

0% to 100% in either equity or debt instruments Mutual fund investments linked to an

ATM/debit card are a Reliance innovation India’s first long-short fund comes from Reliance

Mutual Fund As at 31st May 2008, more than 6.6 million people had invested in Reliance Mutual

Fund; the investments comprised 16% of the country’s entire mutual fund asset base.

43



Achievements

In two successive joint surveys by The Economic Times’ Brand Equity and ACNielsen, Reliance

was recognized as India’s Most Trusted Mutual Fund. The company also walked away with

seven other scheme prizes – five of them being outright winners – in the Gulf 2007 Lipper

Awards. These included the Fund House of the Year by Lipper GCC as well as ICRA Online and

the Most Improved Fund House by Asia Asset Management. It also received the NDTV Business

Leadership Award 2007 in the mutual fund category and runners’ up recognition as the Best

Fund House in the Outlook Money-NDTV Profit Awards. In addition, the company received the

coveted CNBC Web18 Genius of the Web distinction for the Best Mutual Fund Website in the

country. RCAM was awarded the India Onshore Fund House 2008 instituted by the Asian

Investor magazine. The company also won the India Equities award in the 5-yearPerformance

category.

44



COMPARATIVE STUDY OF MUTUAL FUND

Major competitior of Reliance Money

Company Profile of HDFC

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac

demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep track of your

securities and investments, over a period of time, without the hassle of handling physical

documents that get mutilated or lost in transit.

HDFC BANK is Depository particpant both with -National Securities Depositories Limited

(NSDL) and Central Depository Services Limited (CDSL).

Features & Benefits

As opposed to the earlier form of dealing in physical certificates with delays in transaction,

holding and trading in Demat form has the following benefits:

• Settlement of Securities traded on the exchanges as well as off market transactions.

45



• Shorter settlements thereby enhancing liquidity.

• Pledging of Securities.

• Electronic credit in public issue.

• Auto Credit of Rights / Bonus / Public Issues / Dividend credit through ECS.

• Auto Credit of Public Issue refunds to the bank account.

• No stamp duty on transfer of securities held in demat form.

No concept of Market Lots.

Change of address, Signature, Dividend Mandate, registration of power of attorney, transmission

etc. can be effected across companies held in demat form by a single instruction to the

Depository Participant (DP).

Secured & easy transaction processing

HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction)

whereby account holder can submit delivery instructions electronically through SPEED-e

website (https://speed-e.nsdl.com). SPEED-e offers secured means of transaction processing

eliminating preparation of instruction slips and submission of the same across the counter to the

depository participant. The 'IDEAS' facility helps in viewing the current transactions and

balances (holdings) of Demat account on Internet on real time basis.

Company Profile of ICICI

ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock

trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs,

Mutual Funds and Bonds. Trading is available in BSE and NSE ICICI Direct offers 3 differentonline trading platforms to its customers.

46



1. Investment Account

Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also

provide options to invest in Mutual Funds and Bonds online.

Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund

companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase

Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans,

Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This

account also provides facility to invest in Government of India Bonds and ICICI Bank TaxSaving Bonds.

ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds and stock

trading.

Reliance Money

Tax Saving funds Reliance Money:

Tax-saving funds (due to their equity-oriented nature) are capable of clocking far superior returns

their assured return counterparts like National Savings Certificate (NSC) and Public Provident

Fund (PPF). However investors must appreciate that the risk profile of tax-saving funds tends to

be proportionately higher.

Reliance Tax Saver (ELSS) Fund (RTSF) is the latest entrant in the tax-saving funds segment.

Flagship diversified equity funds (Reliance Growth Fund and Reliance Equity Fund) from

Reliance Mutual Fund have emerged as top performers in their segment across time horizons.

However investors should note that these funds are managed aggressively; also they have

displayed an opportunistic streak by moving fluidly across market segments (large caps, mid

caps) to clock superior growth. RTSF is likely to be a similar (high risk - high return) investment

proposition within the tax-saving funds segment.

47



SYSTEM INVESTMENT PLAN

SIP is a way of investing in Mutual Funds. It is designed for those investors who are willing to

invest regularly rather than making a lump sum investment. It is just like a recurring deposit with

the post office or bank where we deposit some amount every month. The difference here is that

the amount is invested in a mutual fund. Mutual Fund makes investment according to their

objective .They collect fund from investor and invests it. Every fund has an objective and pattern

of investing. There are various kinds of mutual funds. There are equity funds and debt funds.

Further equity funds can be divided into equity diversified mutual fund where funds are invested

in shares of different companies , sectoral funds where investment is made in shares of some

particular sector like FMCG, IT, Auto, Oil & Gas, Banking etc. Every fund has a NAV (net asset

value) which is the value per unit. It is calculated as the total asset is divided by the number of

outstanding units. As the value of asset changes, nav also changes.

The best way to invest in stock market is mutual fund through Systematic Investment Plan. But

to get the benefit of an SIP, a long term horizon is must.

48



LITERATURE SURVEY

According to the Webster’s dictionary, l i terature is “the writings that pertain to

a part icular branch of learning, and pr in ted mat ter” . And review means “ to

examine again, to study carefully”.

Therefore li terature review is the printed matter which we study very carefully

during our work. This project is also a col lect ion of insight into the different

printed material.

As this project is specifically related to sales of financial products hence books

on investments is one of the study materials.

The insurance inst i tute of India has published books which give an insight into

the life insurance products and general insurance products.

The main source of data through which this project has taken i ts shape is the

circulars of SEBI and IRDA. These circulars give description of existing market.

Th e k no wl ed ge a bo ut t he m ar ke ti ng p ri nc ip le s i s g ai ne d f ro m t he b oo k

“principles of marketing” written by Philip Kotler.

Chapter “positioning and marketing of services” of the “service management and

operations” published by prentice hall international editions gives us the outline

of marketing of services.

Chapter “Building Customer Sat isfaction, Value and Retention” of “Marketing

Management” wri tt en by Phi lip Kot le r. Purpose o f thi s book i s to p rovide

background needed to understand the basics of forming strong customer bonds

and customer relationship management.

Chapter on distr ibut ion channels in the book “marketing channels” wri t ten by

L oui s W. s t e rn & add I .E . I Ansa ry . Purpose o f th i s book i s to p rov ide the

detailed knowledge about what is distribution channel, i ts importance & role in

marketing.

49



Chapter “The concept and role of mutual funds” of the AMFI mutual fund testing

programme by association of mutual funds in India. This book provide concept

of mutual funds.

The art icle “managing your Demat account” published in the MINT dated June

18, 2007 page 12 give knowledge about Demat account.

Last but not the least, the practical experiences of reliance money has given the

best ever exposure on the actually market works in financial products and

services.

50



SIGNIFICANCE OF STUDY

The need of the study arises because of the reason that a trainee must understand

the company, i t s achievements and tasks , products and services and a lso to

collect information about i ts competi tors , i ts products and services offered. So

that, af ter understanding and col lect ing information about the organizat ion and

its competitors, a trainee will be able to work well for the organization.

51



COMPANY PROFILE

Reliance Money is promoted by Reliance Capital ; one of India 's leading and

fastest growing private sector f inancial services companies, ranking among the

top 3 private sector f inancial services and banking companies, in terms of net

worth. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.

Thus, Rel iance Money p rovides a comprehensive p la tform, o ffer ing an

investment avenue for a wide range of asset classes. I ts endeavor is to change

the way Ind ia t ransac ts in f inancial marke t and ava il s f inancial services.

Reliance Money offers a single window facility, enabling you to access amongst

others, Equi ties, Equi ty and Commodi ty derivat ives , Offshore Inves tments ,

IPO’s, Mutual Funds, Life Insurance and General Insurance products.

Advantages offered by Reliance money over other companies:

•Cost Effective

• Convenience

• Security

• Single Window for Multiple Products

• 3 in 1 Integrated Access

• Demat Account with Reliance Capital

• Other Services like research, l ive news from Reuter and Dow Jones, etc.

PRODUCT OFFERING

1. Trading Portal (with almost negligible brokerage )

• Equity Broking

• Commodity Broking

• Derivatives ( Futures & Options )

•Offshore Investments (Contract For Differences)

• D-Mat Account.

52



2. Financial Products

• Mutual Funds

•Life Insurance

o ULIP plan

o Term Plan

o Money Back Plan

• General Insurance

o Vehicle/Motor Insurance

o Health Insurance

o House insurance

• IPO’s

• NFOs

3. Value-Added Services

• Retirement Planning

• Financial Planning

• Tax Saving

• Children Future Planning

4. Credit Cards

5. Gold coins retailing

53



TRADING PORTAL

Online t rading refers to buying and se ll ing of the shares/ s tocks/ cont rac ts/

bonds with the use of internet. In this shares are not issued in physical form

rather they are t ransfer red in the demater ial ized form in the Demat account

directly.

DEMAT ACCOUNT

In India, a Demat account , the abbreviat ion for dematerialized account , i s a

type of banking account which dematerializes paper-based physical stock shares.

The dematerialized account is used to avoid holding physical shares: the shares

are bought and sold through a broker . This account i s popular in India . The

Securities and Exchange Board of India (SEBI) mandates a Demat account for

share trading above 500 shares. As of April 2006, it became mandatory that any

person holding a Demat account should posses a Permanent Account Number

(PAN), and the deadline for submission of PAN details to the depository lapsed

on January 2007.

What are the benefits of opening a Demat account?

Demat account has become a necess i ty for a l l ca tegor ies of inves tors for the

following reasons/ benefits:

• SEBI has made it compulsory for trades in almost all scrip’s to be settled in

Demat mode. Although, trades up to 500 shares can be settled in physical form,

physical settlement is virtually not taking place for the apprehension of bad

delivery on account of mismatch of s ignatures , forgery of s ignatures , fake

certificates, etc.

• I t i s a safe and convenient way to hold secur i t ies compared to holding

securities in physical form..

• No stamp duty is levied on transfer of securities held in Demat form.

• Instantaneous transfer of securities enhances liquidity.

54



• I t e limina tes delays, t he ft s, i nt ercep tions and subsequen t misuse o f

certificates.

•

Change of name, address , regis tra tion of power of a t torney, de le t ion of d ec ea se d' s n am e, e tc . - c an b e e ff ec te d a cr os s c om pa ni es b y o ne s in gl e

instruction to the DP.

• Each share is a market lot for the purpose of t ransact ions - so no odd lot

problem.

Any number of securi t ies can be transferred/delivered with one del ivery order .

Therefore, paperwork and signing of multiple transfer forms is done away with.It facilitates taking advances against securities on low margin/low interest.

55



DEMAT ACCOUNT

T here a re many broking houses doing bus iness in Ind ia and they cha rge a

brokerage on every transaction made online or offline. (Buying and Selling are

treated as separate transaction). Reliance Money’s advantage over others is that

i t ’s charging the lowest brokerage in the market which is just 1 paisa on every

e xe cu ti ve t ra de i rr es pe ct iv e o f t he v ol um e t ra de d. R el ia nc e M on ey , t he

brokerage and distribution arm of Reliance ADA Group, aims to tap investors in

the smaller towns and ci t ies through a f lat fee structure. The current leaders in

the retail broking segment like ICICI Direct, India Info line and India bulls offer

a ‘pay per use’ model where the cus tomer pays a percentage of the amount

transacted by him. Reliance Money’s brokerage rates are quite competitive.

The new wonder is Reliance Money's pre-paid card for stock market brokerage.

Rel iance Money, the f inancia l services d ivis ion of Anil Dhirubhai Ambani

Group-promoted Reliance Capital , is bringing to the market pre-paid cards in

denominations of Rs500, Rs1,350 and Rs2,500 wi th valid ity period of two

months, six months and twelve months respectively.

These cards would offer brokerage a t one- th i rd of the ra te be ing charged by

inst itut ional and individual brokerage houses. Sample this . For a pre-paid card

wor th Rs500 , an inves to r can t rade up to Rs90 l akh in futures and opt ion

segment or can undertake intra-day trade of similar amount. Besides, an investor

can undertake a delivery-based activity of Rs10 lakh.

The Rs1350 worth pre-paid card, total t rading l imit would reach Rs 3 crore, of

which Rs 2.70 crore is for the F&O segment and balance Rs30 lakh for delivery-

based activities.

For Rs2500 pre-paid card, total trading limit is fixed at Rs16 crore, that include

F&O limit of Rs15.40 crore and balance Rs 60 lakh for delivery-based broking.

56



(Source Web)

57



58

Fig.4.1 Fee Structure



Convert ed to percentage t erms - Rel iance Money o ffer s mos t compe ti tive

brokerage rates - 0.05% for delivery trades and 0.005% for non-delivery trades

(f ixed fee of Rs500/- for del ivery trades up to Rs10 lacs and/or non-del ivery

trades up to Rs1 crore). Industry rates vary between 0.4% to 0.85% for delivery

trades and between 0.05% and 0.10% for non delivery trades.

Target low level of retail penetration in India - less than 3 per cent of household

financing savings makes it into equity markets

Rel iance Money consumers can t rade in equi t ies , commodi t ies and offshore

Inves tments , IPO’s , Mutual Funds, Insurance, Money t ransfer and Money

Changing - all through single window, both off-line and online.

Reliance Money has already tied-up with CMC Capital Plc UK to offer offshore

Investment products to Indian consumers as per guidelines.

How reliance money scored over others?

1. Two way authentication : Reliance offers i ts customers with a token (an

electronic gadget) that generates a password, which are a third level of security

in addi t ion to the cus tomer log in and a password provided. The password

generated by the token is valid only for a period of 20 seconds. If the web page

expires, for the fresh login, a new password generated by the token has to be

keyed in by the customer.

2. Lowest brokerage: Reliance offers the lowest brokerage of 1 paisa which

is very less with respect to the other DPs in the market.

3. User friendly software : The portal offered is very easy to understand and

use.

4. Forex and offshore investment : Reliance provides the offshore faci l i ty

which no other AMC is providing in the market.

59



5. Better research and news : Reliance offers news from the DOW JONES

and REUTERS.

Seeking to bring share t rading closer to consumers just l ike ATMs, Reliance

Capital 's stock brokerage arm Reliance Money launched Internet trading services

through web-enabled retail kiosks.

60



(Source: Web)

61

Monday, April 16, 2007

Reliance Money launches Internet trading through kiosks

NEW DELHI: Seeking to bring share trading closer to consumers just like ATMs,Rel i ance Capi t al ' s s tock b rokerage a rm Rel i ance Money on Monday l aunchedInternet trading services through Web-enabled retail kiosks.

Becoming the f irst Indian company to provide share trading through Web-enabledre ta i l k iosks , Ani l Dhirubhai Ambani Group f i rm sa id i t p lans to deploy 10 ,000

such kiosks across the country, for which it is also talking to various retail chains.

"These Internet enabled kiosks wil l provide the users anytime-anywhere access toRel iance Money 's f inancia l t ransac t ion por ta l th rough which they can invest invarious f inancial instruments in a secure environment", Mr. Sudip Bandyopadhyay,CEO, Reliance Money said.

In i ts f irst phase, the kiosks would be operat ional at the retai l outlets of RelianceMoney, which had commenced operations last week across 700 cities. The kiosks atvarious retail chains would be launched in the subsequent phases.

The company has t ied up with Wincor Nixdorf , a leading global provider of retai l banking IT solution with net revenues of $1.4 bil l ion and presence in 90 countries,for these kiosks.

Wincor -Nixdorf ' s APAC Reta il Head , Mr. Andrew Phay sa id , "We see g rea t potential for our products in the country owing to the retail boom and wil l continueto introduce latest products for our customers here."

The company said this would be biggest ever deployment of Internet enabled retai lkiosks by any company across the world. - PTI



FINANCIAL PRODUCTS

A mutua l fund represent s a veh ic le for col lect ive inves tment. When you

participate in a scheme of a mutual fund, you become a part-owner of the

inves tments he ld under that scheme. The most important characteri s tic of a

mutual fund i s tha t the cont r ibutors and the benef ic iar ies of the fund are the

same class of people, namely the investors. The term “MUTUAL” means that

investors contribute to the pool, and also benefit from the pool.

Th e m on ey h el d i n t he t ru st i s d iv id ed i nt o s ha re s o f e qu al v al ue c al le d

“UNITS”. Investors become “unit-holders” and are allocated units based on the

amount of their investment . The income earned through these investments and

the capital appreciation realized is shared by its unit holders in proportion to the

number of units owned by them.

Investments in securities are spread across a wide cross-section of industries and

sectors and thus the risk is reduced. Diversification reduces the risk because all

s tocks may not move in the same direct ion in the same proport ion at the same

time. Mutual fund issues units to the investors in accordance with quantum of

money invested by them. Investors of mutual funds are known as unit holders.

Thus a mutual fund is the most sui table investment for the common man as i t

offers an opportunity to invest in a diversified, professionally managed basket of

securities at a relatively low cost.

62



Fig.5.1 Concept of mutual fund

The shift in investor preference towards mutual funds has been facilitated by:

• Fiscal incentives

• Increas ing re turns f rom debt mutual fund inves tments in the last few

years due to the secular decline in interest rates

• The growing number of choices available to investors

• The gradual change in the investors’ risks profile and returns.

Open end versus Closed end Schemes

There are two different types of funds.

• Open-ended Fund/ Scheme

•

Closed-ended fund/ Scheme

The key di fferences be tween the c losed-end and open-end schemes area as

follows:-

The subscript ion to a closed-end scheme is kept open only for a l imited period

(usually one month to three months). Where an open-end scheme accepts funds

from investors by offering its units or shares on a continuing basis.

63



A closed-end scheme does not al low investors to withdraw funds as and when

they like, whereas an open-end scheme permits investors to withdraw funds on a

continuing basis under a re-purchase arrangement.

A closed-end scheme has a f ixed maturi ty period (usual ly f ive to f i f teen years)

whereas an open-end scheme has no maturity period.

The closed-end schemes are l is ted on the secondary market , whereas the open-

end schemes are ordinarily not list .

In India, three entities are central to a mutual fund operation:

•

The sponsor,

• The mutual fund

• The asset management company.

Th e s po ns or i s t he k ey wh o e st ab lis he s t he mu tu al f un d a nd t he a ss et

Management Company. For example, Templeton International (sponsor) set up

the Templeton Mutual Fund which has been const i tu ted as a t rus t under the

Indian Trusts Act, 1882 and registered with SEBI. The mutual fund is, in a way,

an umbre ll a o rgan izat ion tha t f loat s var ious schemes in which inves to rs

participate. The asset management company, organized as a separate joint Stock

company, manages the funds of mutual fund under i t s various schemes. For

example, Templeton Asset Management (India) Pvt. Ltd. , the asset management

company set up by Templeton Internat ional , manages the various schemes of

Templeton Mutual Fund.

Why one should invest in mutual funds?

Mutual funds are preferable mode of investment due to the following reasons:

• Reduction of risk

• Professional Management

• Tax benefits

• Low transaction costs

•

Highly regulated• Liquidity

• Easy to administer

64



Why one should not invest in mutual funds?

The following are the reasons, which are deterrent to mutual fund investment:

• No control over costs

• No tailor made portfolios

• Managing a portfolio of funds

Constitution of a Mutual Fund

There are a number of bodies that form a part of the mutual fund, they are as

follows:

• Sponsors

The sponsor is the company which sets up the mutual fund. I t means anybody

corporate acting alone or in combination with another body corporate established

a mutual fund after initiating and completing the formalities.

• Trustees

The management of the mutual fund i s subjec t to the cont rol of the board of

trustees of the fund. They guide the operations of the fund and carry the crucial

responsibility to see that AMC always act in the best interest of the investors.

• Asset Management Company

The mutual fund i s opera ted by a separate ly es tabli shed asse t management

company (AMC).I t manages the funds of the various schemes. I t is entrusted

with the specific task of mobilizing funds under the scheme.

• Custodian

A custodian i s a person car rying on the ac t iv i t ies of the safekeeping of the

secur i t ies or par t ic ipa t ing in any c lear ing sys tem on behal f of the c l ients to

effect deliveries of the securities.

65



Types of Mutual Funds

There are different ways of classifying mutual funds:

• An EQUITY FUND inves ts mainly in s tocks and shares of companies.

EQUITY FUNDS typically aim to generate long term growth in the unit capital.

There are a var ie ty of ways in which an equi ty por t fo l io can be crea ted for

investors. There are thus the following choices in equity funds:

o Simple equity funds

o Industry Specific funds

o Index funds

o ELSS

Target market:

They are ideal for investors having a long term perspective, Speculative outlook-

the equity cult , who would like to make gains in the shortest period of time andinvestors in their prime earning years-specifically the young who have a decent

earning and can take some kind of risk.

• A DEBT FUND i nv es ts m ai nl y i n d eb t i ns tr um en ts l ik e b on ds a nd

debentures, with high and consistent dividend payout. These funds give decent

returns but the capital appreciat ion is not much. There are a variety of ways in

which a debt portfolio can be created for investors. There are thus the following

choices in debt funds:

o Liquid and Money market funds

o Gilt Funds

o Monthly Income Plan

o Floating rate funds

Target market:

o Retired people and others with a need for stability and regular income.

66



o Investors who need some income to supplement their earnings.

•

A BALANCED FUND invests in both equity and debt instruments. I t aimsto generate growth and income by periodically distribut ing i ts assets over both

types of securities.

Target market:

These ideal for inves tors looking for a combinat ion of income and modera te

growth.

How to invest in mutual funds?

The fol lowing are the essential s teps which one must take into account while

investing in Mutual funds:-

Step 1- Identify the investment needs

Financial goals of an individual wi ll vary , based on his/her age, l i fes ty le,

f inancia l independence, fami ly commitments, level of income and expenses

among many other fac tors . Therefore the f i r s t s tep i s to assess one’s needs ,

which can be done by asking oneself these questions:

Q1.What is my investment objectives and needs?

Q2.How much risk I am willing to take?

Q3.What is my cash flow requirements?

By going through such an exerc ise , one wi l l know what one wants out of h is

inves tment and can set t he foundat ion for a sound mutua l fund inves tment

strategy.

67



Step 2-Choose the right mutual fund

Once an individual has a c lear s t ra tegy in mind, he now has to choose which

mutual fund and scheme he wants to invest in. The offer document of the scheme

tel ls i ts object ives and provides supplementary detai l l ike the t rack record of

o ther schemes managed by the same fund manager . Some fac tors to evaluate

before choosing a particular mutual fund are:

•

The track record of the performance over the past few years in relat ion toappropriate yardstick and similar funds in the same category.

• Ho w we ll t he f un d i s o rg an iz ed t o p ro vid e ef fic ie nt, p ro mpt a nd

personalized service.

• Degree o f t ransparency as r ef lect ed in f requency and qua li ty o f the ir

communications.

Step 3-Select the ideal mix of schemes.

Invest ing in one mutual fund may not meet al l the investment needs. One may

consider investing in a combination of schemes to achieve the specific goals.

Step 4- Invest regularly

For most of us , the approach tha t works bes t i s to inves t a f ixed amount a t

specif ic intervals , say every month. By invest ing a f ixed sum each month one

buys fewer units when the price is higher and more units when the price is low,

t hu s b ri ng in g d ow n t he a ve ra ge c os t p er u ni t. T hi s i s c al le d R up ee c os t

averaging and is a disciplined investment strategy followed by investors all over

the world.

Step 5-Keep the taxes in mind

I f an individual comes under the h igh tax bracket and has u t i l ized ful ly the

exemptions under Sect ion 80L of the income tax act , investing in mutual fundswill improve his return.

68



Step 6-Start early

I t is desirable to star t invest ing early and st ick to a regular investment plan. If

one starts now .he will make more than if he waits and invests later. The power

of compounding lets one earn income on income and one’s money multiplies at a

compounded rate of return.

Step 7-The final Step

All one needs to do now is to get in touch with a mutual fund or one’s agent and

start investing. Reap the benefits in the years to come. Mutual funds are suitable

for ever kind of investor-whether s tar t ing a career or ret i r ing, conservat ive or

risk taking, growth oriented or income seeking.

Nature of Income Distribution to Investors

At a broad level, the investors have three options:

• DIVIDEND PAY OUT OPTION

In this opt ion investors receive dividends from the mutual fund, as and whensuch dividends are declared. Dividends are paid in the form of warrants, or are

directly credited to the investor’s bank accounts.

• GROWTH OPTION

Inves tors who do not requi re periodic income dist r ibutions can choose the

growth opt ion, where the incomes earned a re r et ained in the inves tment

portfolio, and allowed to grow, rather than being distributed to the investors.

• RE-INVESTMENT OPTION

In this opt ion investors re invest the dividends that are declared by the mutual

f un d, b ac k i nt o t he f un d i ts el f, a t N AV t ha t i s p re va le nt a t t he t im e o f

re inves tment . In th is option, the number of unit s he ld by the investor wi l l

change with every reinvestment . The value of the units wil l be similar to that

under the dividend option.

Different schemes of Reliance Mutual fund

69



The different schemes offered to various kinds of investors by Reliance mutual

fund can be broadly classif ied into three categories –Equity, Debt and sector

speci fic . Each of these ca tegor ies has d i fferent inves tment objec tives and

therefore has different portfolio.

Equity Schemes

• Reliance Growth Fund

• Reliance Vision Fund

• Reliance NRI Equity Fund

• Reliance Equity Opportunities Fund

• Reliance Index Fund

• Reliance Tax Saver Fund

• Reliance Equity Fund

Debt Schemes

• Reliance Income Fund

• Reliance Medium Term Fund

• Reliance Short Term Fund

• Reliance Liquid Fund

• Reliance Monthly Income Plan

• Reliance Gilt Securities Fund

• Reliance Floating Rate Fund

• Reliance NRI Income Fund

Sector Specific Schemes

• Reliance Banking Fund

•

Reliance Pharma Fund

• Reliance Media and Entertainment Fund

70



• Reliance Diversified Power Sector Fund

As I was more involved in the understanding and promotion of the NFO of

Rel iance Equi ty Fund during the in it ial part of my t rain ing. I would l ike to

summarize it in brief.

Reliance Equity Fund

The Reliance Equity Fund is an open ended diversified equity fund that seeks to

provide long term capital appreciation by investing in a portfolio constituted of

eq ui ty a nd e qu it y r el ate d s ec ur it ie s o f t op 1 00 c omp an ies b y ma rke t

capi tal iza t ion and of companies that a re avai lable in derivat ives segment ,

belonging to diverse sectors.

The investment s trategy being that even if the markets go down, the fund has a

part of its portfolio hedged, which aims at minimizing the downside risk. The

fund wil l not only use hedging techniques to l imit the downside r isk but wil l

also try & capitalize on short selling opportunities to generate additional returns

for the inves tors . The fund wi l l inves t 75-100% in equi ty and equi ty re la ted

instruments and 0-25% in debt and money market securities. In a nut shell what

this fund tries to do:

• Generate long term returns by investing in a diversified portfolio of stocks.

• Minimize the downside risk by being in a hedged position

• Capitalize on generating additional returns by selective shorting.

"Insurance is a contract between two parties whereby one party called insurer

undertakes in exchange for a fixed sum called premiums, to pay the other party

called insured a fixed amount of money on the happening of a certain event."

71



Reliance Life Insurance is an associate company of Reliance Capital Ltd. , which

a long w ith i ts a ssoc ia te s has acqui red 100% shares in AMP Sanmar L ife

Insurance Co Ltd. Reliance Life Insurance, has a pan presence and a range of

products catering to individual as well as corporate needs. A total of 16 products

covering savings, protection & investment requirements.

Vision : Empowering everyone live their dreams

Mission : Create unmatched value for everyone through dependable, effect ive,

transparent and profitable life insurance and pension plans

• Guiding Principles

• Customer Care and Satisfaction

• Corporate Governance

• Creativity and Innovation

• Competitiveness

NEED FOR LIFE INSURANCE

•Protection of the interest of the faculty of the loss of income due to death of

the breadwinner.

• Provision for the education & marriage of children.

• Post retirement income for self & dependents.

•

Special needs like loss of income due to disabilit ies, accidents, treatment of

diseases, sickness etc.

72



• To protect against inflation.

Who Can Buy A Policy?

Any per son who has a tt ained major ity and i s e ligible to enter into a val id

cont rac t can insure h imself /herse l f and those in whom he/she has insurable

interest . Policies can also be taken, subject to certain condit ions, on the l i fe of

one 's spouse or chi ldren. While underwri ting proposals , certain factors such as

the policyholder’s s tate of heal th, the proponent 's income and other relevant

factors are considered by the Corporation.

Insurance for Women

Prior to nat ional izat ion (1956), many private insurance companies would offer

insurance to female lives with some extra premium or on restrictive conditions.

However , a f ter na tional iza tion of l i fe insurance, the te rms under which l i fe

insurance is granted to female l ives have been reviewed from t ime-to-t ime. At

present, women who work and earn an income are treated at par with men. In

other cases, a restrictive clause is imposed, only if the age of the female is up to

30 years and if she does not have an income attracting Income Tax.

Medical and Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be

assured. However , to fac i l i ta te grea ter spread of insurance and a lso to avoid

inconvenience , Companies has been extending insurance cover wi thout any

medical examination, subject to certain conditions.

73



With Profit and Without Profit Plans

An insurance pol icy can be 'wi th ' or 'wi thout ' prof i t . In the former , bonuses

disclosed, i f any, af ter periodical valuat ions are al lot ted to the policy and are

payable along with the contracted amount. In 'without' profit plan the contracted

amount i s pa id wi thout any addi t ion. The premium ra te charged for a 'wi th '

profit policy is therefore higher than for a 'without' profit policy.

Keyman Insurance

Keyman insurance is taken by a business f i rm on the l i fe of key employee(s) to

protect the firm against financial losses, which may occur due to the premature

demise of the Keyman.

Tax Benefits of Insurance

T he t ax b reaks tha t a re ava il ab le under our var ious insurance and pension

policies are described below:

• Life insurance plans are eligible for deduction under Sec. 80C.

• Pension plans are eligible for a deduction under Sec. 80CCC.

• Health insurance plans/riders are eligible for deduction under Sec. 80D.

• The proceeds or withdrawals of our life insurance policies are exempt under

Sec 10(10D), subject to norms prescribed in that section.

Unit Linked Insurance Plan

ULIPs have been sel l ing l ike proverbial ‘hot cakes’ in the recent past and they

are l ikely to continue to outsel l their plain vanil la counterparts going ahead.

Ear l ier there were a gamut of t radi tional products , for instance Endowment

P lans ; Money back plans e tc , then came the concept of Uni t L ink Insurance

Plans, which today has caught the fancy of many people.

74



Unit Link plans work l ike a combinat ion of Mutual Funds and Life Insurance,

just l ike in Mutual Funds the Investment here is also broken up into units based

on the current NAV, these products are termed as Unit Linked plans because the

Investment is broken up into units.

F or i ns ta nc e i f y ou w er e t o i nv es t R s1 00 00 , i t w ou ld b e b ro ke n i nt o 3

components:

• Charges- These are charges that the Insurance Company deducts from your

premium, a major chunk of charges goes into paying commission to the Agent

for sourcing the business.

• Mortality- Expense - Mortality expenses are not as high as agent

commission; they approximately tend to be around Rs100/Lakh for a 30 yr old

man. In case of a death claim of 1 lakh, the insurance company can make this

claim with a mere Rs100 deducted from you, now this is made possible because

mortality charge is deducted from every customer who has invested in the plan.

In th is manner the Insurance Company col lec ts a subs tant ia l por t ion and not

every person dies at the same time leading to only a few claims in a single year.

• Investment – After the above 2 deductions, the balance is invested on behalf

of the customers, so in reality if the current NAV is 10, and a customer has paid

a premium of 10,000, then a l lo tment of uni t s would be 10,000 – (charges +

Mortality expense) current NAV . The same process is repeated in the following

years when premiums are paid however in the fol lowing years the charges tend

to be lower as insurance charge lesser after the 1 s t year. Mortality Cost however

goes up with age but does not increase substantially for a younger person in his

20’s or 30’s as a result of which the money allotted towards Investment goes up.

Unit Link plans give the f lexibi l i ty to withdraw your investments earl ier than

Tradit ional Plans, but withdrawals can decrease the Insurance cover you have

opted for. The other thing to keep in mind is the tax implication of making early

withdrawals, from the returns point of view Unit l ink plans give you a chance of

choos ing your own Inves tment Opt ions , which cou ld be Debt, E qu ity o r

Balanced (combinat ion o r both) whereas t radi tional p lans have p rimari lyinvested in debt instruments like Govt. Bonds where the security is ensured but

returns may not be very high.

75



Unit l ink plans also give a greater amount of flexibility in terms of your policy

not lapsing if premium in a year or two is not paid. The other interesting option

that these plans offer is the choice to decide your own Insurance cover in the

beginning. Flexibility wise Unit Link plans definitely score over traditional

plans; even they tend to be more transparent.

Claims

In case of Critical i l lness, Total and permanent disability or Death claim please

l og t he c la im a nd s ub mi t l is te d d oc um en ts e it he r d ir ec tl y t o t he C la im s

department, Chennai or at any of the nearest branch.

Register the Claim under:

• Death

• Critical Illness

• Disability

Survival or Maturity Benefits

Survival Benefits : Survival benefits are those payments which are paid during the

term of the policy. The frequency of payment may vary from product to product.

Maturity Benefits : Payment made at end of the policy term as shown in policy

documents.

Documents required for death claim

• Claim form A: This form need to be filled by the nominee or claimant

• Claim form B - Certificate of last i l lness to be filled, signed and stamped by

the doctor in attendance during the last i l lness of the deceased life assured.

• Original Policy Documents

• Original death certificate by Death and Birth Registrar

• Death certificate by the doctor confirming cause of death

• Nominees photo identification card copy attested by Insurance company

official.

76



• All hospital reports, if hospitalized during the last sickness

• Post Mortem Report and Viscera report, if performed

In case of accident or suicide

• First Information Report and final Police Investigation Report

• Panchnama /Inquest report

• News paper report on the accident with photographs, if available

Documents required for Total & permanent disability claim

• Claim forms (A & B)

• All hospi ta l repor ts (cer t if ica te of d iagnosis, a t tended physician repor t,

discharge summary, first consultation notes etc)

• Original policy document

• FIR and Police Investigation Report

• News paper report on the accident

• Panchanama or Inquest Report

PLANS

Individual Plans

Product Name Description

Reliance

Automatic

Investment

Plan

A smart plan which adapts to your changing risk profile with

increasing age.

77



Reliance

Money

Guarantee

Plan

Under this plan the investment risk in the investment portfolio is

borne by the policyholder.

Reliance

Endowment

Plan

This plan will keep you financially prepared for all the special

occasions in your life.

Reliance

Special

Endowment

Plan

This insurance policy is designed for people who wish to combine

savings with extended security.

Reliance Cash

Flow Plan

This insurance policy is designed for those who have a recurring

need for reinvestment in business or look for short-term

investment channels.

Reliance Child

Plan

This insurance policy is designed for people who wish to save

money for a future time.

Reliance Term

Plan

This insurance policy is designed for those who only want life

cover for the protection of their family, and do not wish to save

for themselves.

Reliance

Whole Life

Plan

This insurance policy is designed for people who do not wish to

avail of any benefits themselves but wish to create an immediate

estate to protect their family by availing of insurance cover on

their l ife at a very low cost.

Reliance

Market Return

Plan

Reliance Market Return Fund is the unit-linked product that helps

you invest in the financial markets in a combination of investment

instruments of your choice.

Reliance

Golden Years

Plan

Reliance Golden Years Plan is a flexible package that provides

freedom of choice in choosing the type of investment, l ife cover,

vesting options such as commuting and annuity options.

Reliance

Simple Term

Plan

Reliance Simple Term Plan is a cost-effective, pure life insurance

plan that offers you comprehensive and affordable coverage for a

limited period of time to suit your needs.

Reliance Reliance Special Term Plan is a pure life insurance plan that

78



Special Term

Plan

offers you comprehensive and affordable coverage for a limited

period of time to suit your needs.

Reliance

Credit

Guardian Plan

Reliance Credit Guardian Plan ensures that your housing loans,

personal loans or even outstanding credit card bills are paid in the

event of untimely demise. Thus keeping you and your family

protected from the burden and the worry of debt in such a

situation.

Reliance

Special Credit

Guardian Plan

Reliance Special Credit Guardian Plan helps you and your family

avoids such situations by securing your housing loans, personal

loans and even credit card payments. What makes the Plan special

is the fact that on survival at maturity, all premiums paid for your

basic policy will be returned to you.

Reliance

Connect 2 Life

Plan

Reliance Connect 2 Life Plan helps you build security and savings

for a better tomorrow.

Employee Benefit Plans

Product Name Description

Reliance Group Term

Assurance Policy

Reliance Group Term Assurance Policy is a one year

Renewable Term Assurance contract. The benefit is

payable on the happening of the contingency during one

year. At the end of the year, the contract may be renewed.

Reliance EDLI

Scheme

All establishments with at least 10 full-time permanent

employees and to whom the Employee's Provident Fundand Miscellaneous Provisions Act, 1952 applies, have a

79



statutory liability to subscribe to Employee's Deposit

Linked Insurance Scheme (EDLI), to provide for life

insurance for all their employees.

Reliance Group

Gratuity Policy

A gratuity policy that reflects your company's identity and

which highlights the value of the benefits you provide to

your employees.

Reliance Group

Superannuation

Policy

A superannuation policy that reflects your company's

identity and which highlights the value of the benefits you

provide to your employees.

80



Fundamentals of General Insurance companies are business houses. The product

they sel l is f inancial protection. To succeed and survive, they must cover their

costs , which include payments to cover the losses of policyholders, as well as

sales and administrat ive expenses, taxes and dividends. Insurance companies

have two sources of income for covering these costs: premium and investment

i nc om e. T he p re mi um a re c ol le ct ed o n a r eg ul ar b as is a nd i nv es te d i n

Go ve rn me nt Bo nds , Gi ft s toc ks , mu tu al f un ds , r eal es ta te s an d ot he r

c on se rv at iv e a ve nu es . H ow ev er , i nv es tm en t i nc om e d ep en ds o n m ar ke t

conditions, interest rates, economy etc and varies from year to year. Because of

the uncer ta inty associa ted wi th the inves tment income, insurance companies

must generate enough income form premium to cover the bulk of their expenses.

The pr imary funct ion of insurance i s to provide protect ion against f inancia l

losses caused by unforeseen events . This protection is avai lable to individuals ,

businessmen and large companies alike.

Types of General Insurance

Health

• Individual Mediclaim

• Group Mediclaim

• Reliance Health Wise Policy

Personal Accident• Personal Accident

• Group Personal Accident

Fire

• Standard Fire and Special Perils

• Consequential Loss (Fire)

• Industrial All Risks

81



Engineering

• Erection All Risks/Storage-cum-Erection

• Contractor’s All Risks

• Contractor’s Plant and Machinery

• Machinery Breakdown Insurance

• Machinery Loss of Profits Insurance

• Boiler and Pressure Plant Insurance

• Electronic Equipment Insurance

Marine

• Marine Cargo Insurance

Motor

• Private Car Comprehensive

Liability

• Directors and Officers Liability

• Public Liability (Act)

• Public Liability

• Product Liability

• Professional Indemnity

• Workmen’s compensation

Miscellaneous

• Industry Care

• Commercial Care

• Office Package

82



• Fidelity Guarantee

• Burglary and Housebreaking

• Money Insurance

• Householder’s Package

• Shopkeeper’s Package

Travel

• Individual and Family

• Asia

• Student

• Corporate

BASIC FEATURES

• Hospitalization Expenses

• Daycare Treatment

• Domiciliary Hospitalization

• Pre and Post Hospitalization

• Coverage of Pre-Existing Diseases

• Critical Illness Cover

• Donor Expenses

VALUE ADDED FEATURES

• Expenses of accompanying person at the Hospital

• Local Road Ambulance Services

• Recovery Benefit

• Cost of Health Check up

• Nursing Allowance

83



• Hospital Daily Allowance

POLICY FEATURES

• Income Tax Benefit

• Family Floater ( 1, 1+1, 1+2, 2+2 )

• Sum Insured

• Pre-insurance Health Check up

• Option in Policy Duration ( 1 & 2 years )

• Renewal Discount

• Cashless Facility (Through Third Party Administrators - TPA)

• Age Slabs

84



Plan Details

(Source: web)

85



OBSERVATION & FINDINGS

To s tudy the sa les and dist r ibution management and improve the Customer

Acquisition Process by analyzing the consumer behavior, response and mindset

towards the product and services the company offers.

OBJECTIVE

• To f ind the market potentia l and market penet ra t ion of Rel iance Money

product offerings in Varanasi.

• To collect the real t ime information about preference level of customers

using Demat account and their inclination towards various other brokerage firms

e.g. Indiabulls, Sharekhan, Indiainfoline, Religare, Alankit , Unicon.

• To expand the market penetration of Reliance money.

• To provide pricing strategy of competitors to fight cut throat competition.

• To increase the product awareness of Rel iance money as s ingle window

shop for investment solutions.

METHODOLOGY

We were supposed to operate from reliance money Nehru place branch. We were

made aware about al l the products Reliance Money was providing with a more

stress on their core product i .e. Demat account.

86



TARGETS

The time duration of the project is 2 months starting from 1 s t July and ending on

30 t h August . We were given targets to be achieved during training months. The

targets of each month were:

• 3Demat Accounts

• 1SIP or Mutual Fund worth Rs10,000

• General Insurance Premium worth Rs50,000

• Life Insurance Premium worth Rs1,00,000

I was supposed to use the database provided by the company to make cold calls

or by directly meeting people to get new leads

The questionnaire used is attached in appendix A.1

While making cold calls, we need to have:

• Good Communication Skills (Voice quality is clear and articulate)

• Persistent and able to bounce back from rejection

• Good organizational skills.

• Ability to project a telephone personality (Enthusiasm, friendliness)

• Flexibility: can adapt to different types of clients and new situations.

• Using a good database is very essential.

87Fig6.1 The Constructive Factors of Tele

calling



“ Eighty percent of our business comes from 20 percent of our customers" is a

frequent statement at any sales convention. There's hardly a sales executive who

is not aware of the 80/20 rule”.

While talking to customers, I analyze their needs. Whether they want to go for

investment purpose or insurance or both. Suggest them the plan that best sui ts

them. If they agree to i t then ei ther we send across the agents to close the deal

or close it themselves.

Fig6.2 The Customers Sales

Cycle

88



Problems faced while selling products:

• Customer dissatisfied with the services.

• People fear that Reliance Money Being a Private company and a new entrant

may be able to sustain or not.

• Insurance means LIC for people.

• Past experience, word of mouth.

• Misguidance by agents.

• People do not want insurance products.

• Lack of knowledge and awareness about general and life insurance.

• People risk appetite is very low, so they are afraid of mutual fund as well.

• People relate the problems of mobile phones of Reliance Communicat ion

with Reliance Money.

89



SWOT ANALYSIS

Weakness

• Inexperienced Staff

• Low awareness due to lack of

advertisement.

• Lack of loyal clientage

• Developing product.

Strength

• Co-operative and Experienced

Branch Managers

• Good Database

• Reliance Brand

• Low pricing

Opportunity

• Untapped Market

• Increased spending power

• Changing Mindset of

Customers

• Unpredictable Sensex

Threat

• Reach

• Stiff competition from existing

players in the market

• Better products

Customer Acquisition Process

• Educate the prospects on the products and services.

• Customize the approach to each of the different customers involved in the

sales process.

• Establish a knowledge base for sales people, resellers and partners.

• Ramp up the new salespeople more quickly and keep them on road.

• Track the prospects as they move through the sales process.

• Harvest other types of information from your market to help the company

close business more quickly. The data of the prospects can be used for research

and development purpose.

• En ab li ng th e c on sis te nt f lo w o f i nf or ma ti on t o t he cu st omer an d

encouraging feedback from them.

• Helping the customers do the Financial Planning for future.

90



MY RESPONSIBILITY ORGANISATION

I worked with Reliance money with a profile of f inancial advisor . This profi le

offers me to understand the need of the customer and provide them the best deal

possible with maximizat ion of the profit , both for the company as well as for the

customer.

The most impor tant aspect for the ro le of f inancia l advisor i s t rus t . So for

fulfillment of the targets one needs to:

• Capi tal ize on old and loyal c l ientage which can be build ing s lowly by

advising people in the best possible way.

• Generating new leads through various activities.

Generation of leads:

Since I was new in this field so I had to start from the scratch and generate new

leads to sustain in the market.

Cold ca l l ing i s one of the t rus ted ways of ge t t ing to the cus tomers wi thout

meet ing them. Although the ra te of convers ion remained very less . For cold

cal ling the qual i ty and accent remains a very important cr i ter ion. This act ivity

gave me mixed resul ts . I often got success and generated many leads through i t

but it also landed me in awkward position where the customer were in different

mood and made us hear words for which a marketer should be always prepared to

hear. Corporate cal ls always remained more diff icul t to crack with respect to

retail sector.

The corpora te were the most d i f f icul t and most tempt ing to ge t the bus iness

from. It took me one day to crack Hi-tech Gears.

At Reliance money after get t ing the product knowledge in the f i rs t week at the

branch I was also allotted distributor to work with. In the initial phase I was

accompanied by more experienced staff. After I became known to the market and

procedure I started attending calls alone only.

91



After the third week my performance also improved and I was able to get close

to the targets , though i t looked di f f icul t to achieve in the beginning. To get

awareness of the every product I at tended diversif ied cal ls . This helped me to

implement cross selling to get better results.

Since the rel iance money core product is Demat account more stress was given

over this. Demat account was also the most tempting of all the products as it was

difficult to convince the customer for the reliance Demat as it was new and with

many l imitat ions. I t was always diff icul t to convince on 1 paisa, as i t wasn’t

mentioned anywhere in ink.

LIMITATIONS:

1. Cold Calling

• Voice and accent plays a major role.

• The right time to call a customer cannot be decided, as the customer may in

a different mood at the time of calling.

• Time consuming

• Less success rate

2. Corporate

• Time consuming

• Contacts with higher authorities play a major role

LEARNINGS

• To get ini t ial success in this f ield is very diff icul t . Although the business

genera t ion becomes eas ier wi th t ime as we serve more people who then get

added up in the loyal cl ientage. Thus t ime and service are two most factors to

get in this field.

• Also the corporate remains a very important segment which gets business in

bulk but retail cannot be ignored which makes your business ticking.

• Customer remains in the pivotal position.

92



RESEARCH METHODOLOGY

“Research as a care full investigation or enquiry especially through search for a new fact in any

branch of knowledge”

Research is an academic activity and such as the term should be used in technical sense. The

manipulation of things , concepts or symbols for the purpose of generalizing to extend ,correct

or verify knowledge ,whether that knowledge through objective.

TYPES OF RESEARCH

ANALYTICAL RESERCH

In this project work, analytical research is used. In this project has to use facts or information

.Already used available ,and analyze these to make a critical evolution of the material.

METHODS OF DATA COLLECTION

In this project work primary and secondary data sources of data has been used.

Primary data: Primary data collect through observation ,or through direct communication or

doing experiments .

Secondary data:Secondary data means already available through books ,journals , magazines

,newspaper.

TOOLS OF ANALYSIS

For the proper analysis of data Quantitative Technique such as percentage method was used.

93



ANALYSIS AND INTERPRETATION OF DATA

Knowing the awareness and perception of the customers is very important in any industry. This

provides insight into the customer behavior and his expectation from the industry players. A

proper understanding of the awareness and perception would definitely benefit the players. This

survey attempt to know the mutual fund investor better. It examines some interesting choices of

the retail investor including the reasons behind investing in mutual funds and the risk tolerance

levels of the investors. The investor knowledge about the mutual funds and what according to

him are the best mutual funds is also analyzed. This Udaipur city survey was conducted to know

the retail investor awareness and perception about mutual funds. It is hoped that this survey in

Udaipur city would go a long way in benefiting for reliance mutual fund.

The total sample for the study was 100 across Jodhpur city.

I. AN OVERVIEW:

This section shows an simple overview of respondents like their age ,gender, income profile,

saving habits and qualification

94



(a) Age-profile:

Table No. I(a) showing age profile of respondents:

S. No Age No .of respondents Percentage

1. 20-25 19 19%

2. 25-40 40 40%

3. 40-55 21 21%

4. 55-60 15 15%

5. 60-Above 5 5%

Total 100 100%

INTERPRETATION:

In this survey I found the maximum number of respondents belongs to the age group of 25-40

years, followed by 40-55 years of age category.

95

Age-profile

40-55

21%

55-60

15%

60-Above

5%

25-40

40%

20-25

19%

20-25

25-40

40-55

55-60

60-Above



(b) Gender-wise:

Table No. I(b) showing gender wise profile of respondents:

S. No Gender No. of respondents Percentage

1. Male 92 92%

2. Female 8 8%

Total 100 100%

INTERPRETATION:

Table No. I (b) represents the gender ratio of the respondents in this survey.92%of the covered

respondents were male and remaining 8% were female.

(c)Income Profile:

96

Gender-wise overview

Male

92%

Female

8%

Male

Female



Table No. I(c) showing income wise profile of respondents:

S. No Income No. of respondents Percentage

1. Less then 1.0 Lakh 34 17%

2. 1.0-2.0 Lakh 38 38%

3. 2.0-3.0 Lakh 30 30%

4. 3.0-5.0 Lakh 6 6%

5. More then 5.0 Lakh 4 4%

6. No response 5 5%

Total 100 100%

Income Profile

38%

30%

6%4% 5%

17%

0%

5%

10%

15%

20%

25%30%

35%

40%

No. of respondents

Less then 1.0 Lakh

1.0-2.0 Lakh

2.0-3.0 Lakh

3.0-5.0 Lakh

More then 5.0 Lakh

No response

INTERPRETATION :

In this survey I found the break up of the respondents. Around 38%of the respondents have an

income between of Rs.1.0-2.0 Lakhs per annum and 30% of respondents in between 2.0-3.0

Lakhs .it display the income profile of respondents.

97



(d) Saving Habits:

Table No. I (d) showing saving habits profile of respondents:

98



S. No Savings No. of respondents Percentage

1. Up to Rs. 2000 31 31%

2. Rs.2001-5000 33 33%

3. Rs.5001-10000 16 16%

4. Rs.10001-20000 3 3%

5. Above Rs.20001 1 1%

6. No Response 16 16%

Total 100 100%

INTERPRETATION:

In this survey around 33% of the respondents reported to have a saving in the range of Rs.2001-

5000 per month .only 1% of the respondents reported having in higher bracket i.e. more

than 20001 per month.

(e)Qualification :

Table No. I(e) showing Qualification profile of respondents:

S.No Qualification No. of respondents Percentage

1. Undergraduates 6 6%

2. Graduates 39 39%

99

Saving Habits of respondentsRs.10001-

20000

3%

Rs.5001-10000

16%Rs. 2001-5000

33%

No response

16%

aboveRs.20001

1%

up to Rs.2000

31%up to Rs.2000

Rs. 2001-5000

Rs.5001-10000

Rs.10001-20000

aboveRs.20001No response



3. Postgraduates 40 40%

4. Others 1 1%

5. No response 14 14%

Total 100 100%

INTERPRETATION :

The surveyed group are well educated group with 40%being post graduates and 39%being

graduates. around 6% of the samples collected were undergraduates.

II. KNOWLEDGE OF MUTUAL FUNDS:

In the survey ,I attempted to understand from the investors their knowledge of Mutual fund.

(a)Knowledge of Mutual Fund:

Table No. II(a) showing knowledge of mutual fund of respondents:

S.n No Knowledge of No. of respondents Percentage

100

6%

39% 40%

1%

14%

0%

10%

20%

30%

40%

No. of respondents

UndergraduatesGraduates

Postgraduates

Others

No response



Mutual Funds

1. Very good 4 4

2. Good 9 9

3. Average 19 19

4. Poor 64 64

5. No response 4 4

Total 100 100%

Knowledge of Mutual Fund

Other

68%

Good

9%

Poor

64% Average

19%

No response

4%Very good

4%

Very good

Good

Average

Poor

No response

INTERPRETATION :

In this survey it was found that 64% of the respondents don’t’ know or their knowledge is very

poor about Mutual funds. they ,while 4% respondents rated their understanding as very good

about Mutual funds. it shows knowledge of Mutual funds are very low..

101



(b) Knowledge related to share market:

Table No. II(b) showing knowledge related to share market of respondents:

S. No Knowledge related to

share market

No. of respondents Percentage

1. Yes 32 32%

2. No 64 64%

3. Can’t say 4 4%

102



Total 100 100%

Knowledge related to share market:

Yes

32%

No

64%

Can't say

4%

Yes

No

Can't say

INTERPRETATION :

It was found that 64% of the respondents don’t know that the Mutual fund is related to share

market. they also don’t know that Mutual funds returns is affected by the fluctuation in share

market.

III. Investment objective/decisions :

This section of survey was aimed at understanding the main reason behind the investment

decision made by an individual. I tried to catch the factor that contribute to making of an

investment portfolio off an individual.

(a)Investment objective:

S. No Investment

objective


1. Capital Gain 21 21%

103



2. Generate Regular

return

6 6%

3. Secure Future 59 59%

4. Tax benefits 14 14%

Total 100 100%

Investment Objective of Investor

capital gain

21%

generate

reguar return

6%

secure future

59%

tax benefits

14%capital gain

generate reguar return

secure future

tax benefits

INTERPRETATION :

Total number of 100 responses were generated for this question and multiple response were

sought for the various investment objectives. the analysis brings out the fact that investor were

more concerned about the secure future(59%) and capital gains(21%), and after that they

considered tax benefits(14%) and regular return(6%) as their main investment objectives.

(b)Decision affecting Factors:

S. No Decision affecting

Factors


1. Economic scenario 19 19%

2. Company image 44 44%

3. Fund performance 21 21%

4. Fund manager image 2 2%

5. Tax incentive 14 14%

104



Total 100 100%

38

88

42

4

28

0

20

40

60

80

100

No. of Respondents

DECISION AFFECTING FACTORS

Economic scenario

Company image

Fund performance

Fund manager image

Tax incentive

INTERPRETATION :

There are certain overall factors that tend to affect the investment decision decision of the

investor, such as economic scenario. I tried to know the respondents opinion on these macro

factors that further tend to affect their investment decisions.

This survey showed that company image acts as the determining factor for their investment with

44%.the second most important factor was fund performance(21%) and economic

scenario(19%).

(c)Information sources regarding Mutual Funds:

S. No Information sources No. of respondents Percentage

1. Print media 29 29%

2. Electronic media 21 21%

3. Friends/Relative 6 6%

4. Financial advisors 19 19%

5. Personal analysis 4 4%

6. Agents 21 21%

105



Total 100 100%

Information sources regarding Mutual Funds

29%

21%6%19%

4%

21%Print media

Electronic media

Friends/Relative

Financial advisors

Personal analysis

Agents

INTERPRETATION :

In this survey I asked from the respondents about the kind of media that affect their investment

decision.29% of the respondents said that the print media is the major influencer in making their investment decisions, electronic media(21%) and agents(21%) were the second major influencer

in investment decision making.

(d)Priority of reason for investment:

S. No Priority for

investment


1. Saving for future 51 51%

2. Tax incentive 14 14%

3. Returns 23 23%

4. Future outlook 7 7%

5. Brand value 2 2%

6. Risk factors 3 3%

106



Total 100 100%

Priority of reason for investment

Tax incentive14%

Returns

23%

Saving for future

51%

Brand value

2%

Future outlook

7%

Risk factors

3%

Saving for future

Tax incentive

Returns

Future outlook

Brand value

Risk factors

INTERPRETATION:

In this survey I found that saving for the future was the foremost important criteria for

investment in the minds of investors (51%), while 23%respondents said that they considered thereturns before making investment decisions.

IV. Risk-Return profile:

In my study I also tried to understand the risk and return matrix of an individual investor. This

was done in order to obtain Information on the relationship between the kind of funds anindividual investor opts to invest in and the relative expectation he has on the return front.

(a)Investment Avenues:

S. NoInvestment Avenues No. of respondents Percentage

1. Post office schemes 12 12%

2. Insurance 4 4%

3. Banks 66 66%

107



4. Share market 3 3%

5. Mutual funds 7 7%

6. Govt. securities 8 8%

Total 100 100%

Investment Avenues

Post office

schemes

12%

Insurance

4%Govt.

securities

8%

Mutual funds

7%

Share market

3%

Banks

66%

Post officeschemes

Insurance

Banks

Share market

Mutual funds

Govt. securities

INTERPRETATION:

The risk return matrix of an individual is the key factor in framing his investment portfolio. I

asked the respondents to select the investment avenues they would prefer to keep their

investment portfolio. 66% of investor preferred to have banks savings as one of the investment

avenue., while 12% of the investor said that they would certainly would like to have post office

schemes as one of their preferred investment avenue.

108



(b)Return expectation from Mutual funds:

S. No Return expectation

from Mutual funds


1. 5%-10% 5 5%

2. 11%-15% 24 24%

3. 16%-20% 31 31%

4. More then 20% 16 16%

5. Can’t say 24 24%

Total 100 100%

109



INTERPRETATION:

In this survey when I came to return expected ,I found that 31% of the investor are expecting a

return in range of 16%-20%,while 24%of the investor are expecting 11%-15% rate of return but

24% of investor can’t said about return expectation.

(c) Investment pattern preferred in Mutual fund by investor :

S. No Investment

pattern preferred

in Mutual fund

No. of

respondents

Percentage

1. Growth schemes 41 41%

2. Balanced schemes 11 11%

3. ELSS 18 18%

4. Sector specific

schemes

6 6%

5. Liquid schemes 7 7%

6. Can’t say 17 17%

110

Return expectation from Mutual funds

Other

40%

11%-15%24% 5%-10%

5%

Can’t say

24%

More then 20%

16%

16%-20%31%

5%-10%

11%-15%

16%-20%

More then 20%

Can’t say



Total 100 100%

41%

11%

18%

6% 7%

17%

0%

10%

20%

30%

40%

50%

No. of respondents

Investment pattern preferred in Mutual fund by investor

Growth schemes

Balanced schemes

ELSS

Sector specific

schemes

Liquid schemes

Can’t say

INTERPRETATION:

The type of schemes selected for investment depends largely on the risk return matrix of an

individual and the time horizon of his investment.

My findings demonstrate that 41% of investors prefer to invest in growth schemes,18% of

investor in ELSS schemes.

(d) Return in diversified schemes in Mutual fund:

S. No Return in

diversified schemes

in Mutual fund


1. Yes 23 23%

2. No 77 77%

Total 100 100%

111



Return in diversified schemes in Mutual fund

Yes

23%

No

77%

Yes

No

INTERPRETATION:

In this survey I tried to know the knowledge of investors about the return on diversified

schemes .I found that 77%of surveyed people don’t know that the return on diversified mutual

fund schemes is more then other schemes. so, it shows that vary lake of awareness about mutual

funds.

(e) Sources of product information:

S. No Sources of product

information


1. Company

brochures

39 39%

2. Company websites 3 3%

3. Investment advisor 14 14%

112



4. Newspaper 37 37%

5. Friends and relatives 7 7%

Total 100 100%

39%

3%

14%

37%

7%

0%

5%

10%

15%

20%25%

30%

35%

40%

No. of respondents

Sources of product information

Company brochures

Company websitesInvestment advisor

Newspaper

Friends and relatives

INTERPRETATION:

This chart represents the different sources of product information, through which investor

generally tend to know regarding the mutual fund’s new schemes and products.39% of the

respondents said that they receive the product information from the company brochures and 37%

respondents said that they get it from newspaper.

CONCLUSION AND RECOMMENDATIONS

RECOMMENDATIONS

Based on the findings of our project we would like to suggest the following:-

• After sales services and follow up calls are important for getting new references so trained

telesales should be appointed for this purpose whose sole work should be to make feedback calls.

113



• Reliance is having too many financial products right from Demat account to General

Insurance and not all the salespeople are familiar with each and every product so the work force

should be segregated each group dealing in a specific product and the sales target should be

given likewise.

• While interacting with the investors I found that most of the customers are unaware about

the Mutual fund. Some of the people look upon mutual funds and equity trading as gambling.

Thus a mutual fund awareness program can help to increase the penetration of mutual funds in

the market.

• Reliance should declare in black ink that they will charge just 1 paisa per transaction.

People tend to think that there must be some hidden charges.

• Rs750 account opening charges are too high when targeting a corporate so the company

should be flexible on this amount.

• Reliance should provide periodic training for updating the product knowledge of various

financial advisors.

• Company should have a scheme of rewards and recognition to employees and the field

persons to boost their motivation.

KEY ISSUES AND CONCLUSIONS

Based on the above SWOT analysis and study of the available data I have come to the

following conclusions:

HUGE POTENTIAL:

•All though relatively new entrants in the market, Reliance is slowly but surely gaining a

strong hold because it is finally able to grasp the investment climate in Delhi. Secondly the

114



branch managers at all the branches are very knowledgeable with a lot of experience in the

financial markets so under their leadership can definitely expand its base

• The entire workforce consists of mostly youngsters, which means they can be encouraged

and motivated to do good work because they have a long way to go and most of them are eager

to climb the ladder.

• Right now Reliance is at its nascent stage and will surely grab the major market under its

belt very soon like in other fields.

Huge investments taking place:

• The Stock Market has been very buoyant until now especially in the past 3 years. This

particular trend is very favorable because a soaring SENSEX means higher returns, which

encourages the investors to invest their money in the market. Although in the past 3 months the

market has shown very unpredictable trend and has already lost over 1000 points.

• So in order to make the best the only thing required is to recruit more field staff who should

be trained in a proper way to get better results.

• In case of insurance, it requires push selling because people always associate it with

emergencies and unpleasant situations like death and they don’t want to think about such

situation let alone prepare for them, which means it requires a lot of conviction on part of the

executives.

Large untapped market:

• People have just opened up to the idea of ULIPs because till now they knew only two kinds

of insurance plans, endowment and term plans so the concept of high returns with protection is

very new to them and slowly and slowly these are becoming popular so there is a huge market

waiting to be tapped.

• In the past few years there has been a tremendous inflow of funds in the Indian market

which has lead to the sky rocketing SENSEX. In fact there has been a tremendous response from

the investors not only in shares but mutual funds as well. The Rs5700Cr infused in the market

through the Reliance Equity mutual Funds is an example of the growing trust of investors who

115



earlier shied from such investments due to stock market fiascos like the Harshad Mehta scam or

the US64 disaster in which investors lost huge amounts of money as well as their trust in

financial instruments.

• With the FDI limits being relaxed, a lot of avenues will open up in the insurance sector and

insurance companies are expected to come up with new plans with a great deal of customization

and flexibility.

116



BIBLOGRAPHY

• Agarwal, J.D. "Security Analysis & Portfolio Management: A Review, Finance India, Vol.

II No. 1, March 1989.

• Bhatt, V. V. "An Appraisal Of Some Recent Estimates Of Savings and Investments",

ICRNI, Vol. 5, 1963.

• Douglas A. Hayes and W. Scott Bauman "Investments: Analysis and Management" III Ed.,

1976, MacMillan

• Malhotra, Naresh "Marketing Research and Applied Orientation" IV Ed., 2005, Pearson

Websites:

• www.mutualfundsindia.com

• www.easymf.com

• www.amfiindia.com

• www.moneycontrol.com

• www.valueresearchonline.com

• www.nseindia.com

• www.bseindia.com

117

http://www.mutualfundsindia.com/

http://www.easymf.com/

http://www.amfiindia.com/

http://www.moneycontrol.com/

http://www.valueresearchonline.com/

http://www.mutualfundsindia.com/

http://www.easymf.com/

http://www.amfiindia.com/

http://www.moneycontrol.com/

http://www.valueresearchonline.com/



Annexure

I am a student of Ashoka Institute of Technology & Management doing my MBA

semester 3rd project on the topic “Promotion Strategy of Reliance Money Product among

Govt. Employee”

Name……………………………………..……Age………………..Sex….……………

Occupation……………………….Address…………………………………………….

Age profile :

Gender :

Income profile :

Saving habits :

Qualification :

Q1. Do you know about the Mutual Funds?

(a) Very good (b)Good

(c)Average (d)Poor

(e)No response

Q2. What is your objective /motive behind investment ?

(a)Capital gain (b) Generate regular 118



(c)Secure future (d) Tax benefits

Q3. Where do you generally invest/save?

(a)Post office schemes

(b)Insurance

(c)Banks

(d)Share market

(e)Mutual funds

(f)Govt. securities

Q4. How do you prioritize the reason for investment?

[rank from 1-5,1 being highest priority]

Saving for future __________

Tax incentives __________

Returns __________

Future outlook __________

Brand value __________

Risk factor __________

119



Q5. How did you come to know about mutual fund?

(a)Print media

(b)Electronic media

(c)Friend/relative

(d)Financial advisor/C.A

(e)Personal analysis

(f)Agents

Q6. What factors affect your decision for investment in Mutual Fund?

(a)Economic scenario

(b)Company image

(c)Fund performance

(d)Fund manager image

(e)Tax incentive

Q7. How much return you expect from Mutual Fund ?

(a)5%-10%

(b)11% -15%

(c)16%-20%

(d)more than 20%

120



(e)can’t say

Q8. What kind of investment pattern you prefer in Mutual Fund?

(a)Growth schemes

(b)Balanced schemes

(c)ELSS

(d)Sector specific schemes

(e)Income schemes

(f)Liquid schemes

Q9. What are the sources of information gathering for you regarding mutual fund?

(a)Company brochures

(b)Company websites

(c)Investment advisor

(d)Newspaper

(e)Friends and relatives

Q10. Are you aware that by investing in diversified investment avenues the average rate

of return would considerable go up?

(a)Yes (b) No

Q11. Do you know that mutual fund is related to share market?

(a) yes (b)no

121



(c) can’t say