A

SUMMER TRANING PROJECT REPORT

ON
“A COMPARATIVE STUDY OF MUTUAL FUNDS & DEMAT
OF RELIANCE MONEY WITH OTHERS”
AT

Submitted In partial fulfillment of the requirements

For the award of the degree
Of

MASTER’S OF BUSSINESS ADMINISTRATION

SESSION (2008-2010)
Preface
Acknowledgement
Declaration

Table of Contents
1. Introduction of company 1
1.1. Profile of Reliance 2
1.2. Money Reliance ADA Group (3-5)
1.3. Chairman Profile 6
2. Reliance Money Product Offering 7
3. Different Mutual Fund in India 8
4. Mutual Fund
4.1. Introduction of Mutual Fund (9-24)
5. Mutual fund of Reliance Money (25-30)
6. Competitors of Reliance Mutual fund
6.1. HDFC Security 31,32
6.2. ICICI Direct 33
7. Demet A/c
7.1. Introduction (34-35)
7.2. Reliance Demat A/c (36-38)
7.3. Feature of Reliance Money Demet A/c (38-40)
7.4. What are necessary Document for Demet A/c (41,42)
8. Competitors of Reliance Money
8.1. ICICI Direct (43,44)
8.2. HDFC Security (45,46)
9. A Comparative Study of Demat Accounts (47,48)
10. Data Analysis & Interpretation (49-61)
11. Objective of the Study 62
12. Research Methodology 63
13. Sampling (Sampling Size, Sampling Design) 64
14. Method of Data Collection 65
15. Finding 66
16. Limitations 67
17. Suggestion 69
18. Conclusion 69
19. Bibliography 70
20. Questionnaire (71-74)
Reliance Money – Transacting and investing simplified.
Reliance Money transact in most secured, cost effective manner. Now, change the way
you transact and invest in financial products and services.

Reliance Money offers you a single window through which you can transact in
multiple financial instrument:
o Equity, Equity & Commodity Derivatives,
o Mutual funds, Portfolio Management Services,
o Wealth Management Services, Gold coins,
o IPO’s offshore investments, life & general insurances
o Or avail money transfer and money changing services,

You can do it all through reliance money. Simply open a reliance money account and
enjoy the convenience of handling all your key financial transactions through this one
window.

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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
Rs.325,000 crores (US$ 81 billion), Net Assets in excess of Rs.115,000 crores (US$ 29
billion), and Net Worth to the tune of Rs.55,000 crores (US$ 14 billion).
Reliance Money is a comprehensive electronic transaction platform
offering a wide range of asset classes. Its Endeavour is to change the way India transacts
in financial markets and avails financial services.
Reliance Money is a single window, enabling you to access, amongst
others in Equities, Equity & Commodities Derivatives, Mutual Funds, IPO’s Offshore
Investments, Life & General Insurance products, Money Transfer, Money Changing and
Credit Cards.
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 Ltd. has interests in asset management, life and general insurance,
private equity and proprietary investments, stock broking and other financial services.
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. The company 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.

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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. Its endeavor is to change
the way India transacts in financial markets and avails financial services.
Reliance Money is a single window which offers the options of choosing various
type of asset classes like-
• Equities, Equity & Commodities Derivatives,
• Mutual Funds, IPO’s, Offshore Investments
• Life & General Insurance products,
• Money Transfer, Money changing and
• Credit Cards

The Reliance Anil Dhirubhai Ambani Group is one of India's top 3 business houses,
and it’s
• Market Capitalization of over Rs.2,90,000 crore (US$ 75 billion),
• Net Worth in excess of Rs.40,000 crore (US$ 10 billion),
• Cash Flows of Rs. 9,000 crore (US$ 2.2 billion),
• Net Profit of Rs. 5,000 crore (US$ 1.3 billion) and
• Zero Net debt.

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Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil
Dhirubhai Ambani is the chairman of all listed companies of the Reliance ADA
Group, namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance
Natural Resources and Reliance Power. He is also Chairman of the Board of Governors
of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi
Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing
Director in Reliance Industries Limited (RIL), India's largest private sector enterprise.
Anil Dhirubhai Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was
centrally involved in every aspect of the company's management
Reliance Capital has interests in asset management and mutual funds, life
and general insurance, private equity and proprietary investments, stock broking,
depository services, distribution of financial products, consumer finance and other
activities in financial services.
Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life
Insurance is India's fastest growing life insurance company and among the top 4 private
sector insurers. Reliance General Insurance is India's fastest growing general insurance
company and the top 3 private sector insurers.
Reliance Money is the largest brokerage and distributor of financial
products in India with more than 2.5 million customers and the largest distribution
network. Reliance Consumer finance has a loan book of over Rs. 8,000 crores at the end
of June 2008.
Reliance Capital has a Net Worth of Rs.6,862 crores (US$ 1.6
billion) and Total Assets of Rs. 19,940 crores (US$ 4.6 billion) as of June 30, 2008 and
over 26,000 Employees. Money has increased its market share among private financial
companies to nearly Convenient & effective – Anytime & anywhere financial transaction
capability. Launched in April 2007. It provides the Flat fees system. It has 2.2 million
customers in 1 year of official launch. It has over 5,000 outlets across 700 towns/cities.
Average daily turnover – in excess of Rs 2,000 crores . Considering the entire life market,
including the Rs. 12,890 crores booked by life insurance Corporation, Reliance life
insurance market share works out to around 6.25% .The life insurance market continuous
to be dominated by LIC which has about 67% share this only a marginal dip from its 73%
share in end-July . These comparisons are only for first year or new business premium.

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 1. Trading Portal (with almost negligible brokerage )
 Equity Broking
 Commodity Broking
 Derivatives ( Futures & Options )
 Offshore Investments (Contract For Differences)
 D-Mat Account.

2. Financial Products
 Mutual Funds
 Life Insurance
 ULIP plan
 Term Plan
 Money Back Plan

3. General Insurance
 Vehicle/Motor Insurance
 Health Insurance
 House insurance
 IPO’s
 NFO's

4. Value-Added Services
 Retirement Planning
 Financial Planning
 Tax Saving
 Children Future Planning

5. Credit Cards

6. Gold coins retailing

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1) UTI mutual fund.

2) SBI Mutual fund.

3) Reliance Mutual fund.

4) ICICI Prudential Mutual Fund.

5) Kotak Mutual Fund.

6) Birla Sun Life Mutual Fund

7) HSBC Mutual Fund

8) HDFC Mutual Fund

9) ING Vysya Mutual Fund

10) Prudential ICICI Mutual Fund

11) Sahara Mutual Fund

12) Unit Trust of India Mutual Fund

13) Standard Chartered Mutual Fund

14) Franklin Templeton India Mutual Fund

15) LIC Mutual Fund

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 There are various investment avenues are available to investors.
Mutual funds also offer good investment opportunities to the investors. Like all
investments, they also carry certain risks. The investors should compare the risks and
expected yields after adjustment of tax on various instruments while taking investment
decisions. The investors may seek advice from experts and consultants including agents
and distributors of mutual funds schemes while making investment decisions.

With an objective to make the investors aware of functioning of mutual funds, an attempt
has been made to provide information in question-answer format which may help the
investors in taking investment decisions.

Like most developed and developing countries the mutual fund cult has been catching on
in India. The reasons for this interesting occurrence are:
1. Mutual funds make it easy and less costly for investors to satisfy their need for capital
growth, income and/or income preservation.
2. Mutual fund brings the benefits of diversification and money management to the
individual investor, providing a Opportunity for financial success that was once available
only to a select few.

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Mutual fund is a common pool of money into which the investors place their
contributions that are to be invested in accordance with the stated objective. A mutual
fund is set up as a trust which supervises the function of an Asset Management
Company (AMC) which manages the investments in mutual fund schemes
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 stocks may not move in the same direction in the same proportion 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. The profits
or losses are shared by the investors in proportion to their investments. The mutual funds
normally come out with a number of schemes with different investment objectives which
are launched from time to time. A mutual fund is required to be registered with Securities
and Exchange Board of India (SEBI) which regulates securities markets before it can
collect funds from the public.

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Unit Trust of India was the first mutual fund set up in India in the year 1963. In early
1990s, Government allowed public sector banks and institutions to set up mutual funds.
In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The
objectives of SEBI are – to protect the interest of investors in securities and to promote
the development of and to regulate the securities market.
As far as mutual funds are concerned, SEBI formulates policies and regulates the
mutual funds to protect the interest of the investors. SEBI notified regulations for the
mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities were
allowed to enter the capital market. The regulations were fully revised in 1996 and have
been amended thereafter from time to time. SEBI has also issued guidelines to the mutual
funds from time to time to protect the interests of investors.
All mutual funds whether promoted by public sector or private sector entities
including those promoted by foreign entities are governed by the same set of Regulations.
There is no distinction in regulatory requirements for these mutual funds and all are
subject to monitoring and inspections by SEBI. The risks associated with the schemes
launched by the mutual funds sponsored by these entities are of similar type. It may be
mentioned here that Unit Trust of India (UTI) is not registered with SEBI as a mutual
fund (as on January 15, 2002).

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A mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset
Management Company (AMC) and custodian.
The Sponsor is a person who establishes the trust as a promoter of a company. The
trustees of the mutual fund hold its property for the benefit of the unit holders. Asset
Management Company (AMC) approved by SEBI manages the funds by making
investments in various types of securities. Custodian, who is registered with SEBI, holds
the securities of various schemes of the fund in its custody. The trustees are vested with
the general power of superintendence and direction over AMC. They monitor the
performance and compliance of SEBI Regulations by the mutual fund.
SEBI Regulations require that at least two thirds of the directors of trustee
company or board of trustees must be independent i.e. they should not be associated with
the sponsors. Also, 50% of the directors of AMC must be independent. All mutual funds
are required to be registered with SEBI before they launch any scheme. However, Unit
Trust of India (UTI) is not registered with SEBI (as on January 15, 2002).

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  Growth/equity oriented scheme
 Income/debt oriented scheme
 Balanced fund
 Equity diversified
 Thematic fund
 Open ended fund
 Close ended fund
 Money market fund or liquid fund
 ELSS(Equity links saving scheme)

1. Growth/equity oriented scheme

 There would be more investments in equities which are shares/ stocks
traded in the stock market.
 Growth fund Provide capital appreciation over the medium to long-term
 Investor who does not require periodic income distribution can choose the
option, where the incomes earned are retained in the investment portfolio
and allowed to grow, rather than being distributed to investors.
 Investors with longer investment horizons and limited requirements for
income choose this option.
 The return to the investor who chooses a growth option is the rate at which
his initial investment has grown over a period for which he has invested in
the fund.

2. Income/Debt oriented scheme

 In this type of fund, also called bond Funds, the investments are primarily
in government and government guaranteed securities and such safe debts
and other high investment grade corporate bonds.
 Provide regular and steady income to investor.

3. Balanced fund
 In this type of funds, the investments are in both equity as well as debts
 The aim of balanced funds is to provide both growth and regular income
as such schemes invest both in equities and fixed income securities in the
proportion indicated in their offer documents.
 These are appropriate for investors looking for moderate growth.

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  They generally invest 40-60% in equity and debt instruments. These funds
are also affected because of fluctuations in share prices in the stock
markets. However, NAVs of such funds are likely to be less volatile
compared to pure equity funds.

4. Equity Diversified
In this type of fund, investment is done in all sectors.

5. Thematic Fund
These funds are based on a particular theme.

6. Open ended fund

 In an open-ended fund, sale and repurchase of units happen on a
continuous basis, at NAV related prices, from the fund itself.
 The corpus of open-ended funds, therefore, changes every day.
 Liquidity is the key feature of open ended schemes.
 These schemes do not have a fixed maturity period.

7. Close ended fund

 A Close ended fund or scheme has a stipulate maturity period e.g. 5-7
years.
 A closed-end fund offers units for sale only in the NFO. It is then listed in
the market.
 Investors wanting to buy or sell the units have to do so in the stock
markets.
 Usually closed-end funds sell at a discount to NAV.
 The corpus of a closed-end fund remains unchanged.

8. Money market or liquid fund

 Provide easy liquidity, regular income and preserve the income
 These schemes invest exclusively in safer short-term instruments such as
treasury bills, certificates of deposit, commercial paper and inter-bank call
money, government securities, etc.
 Returns on these schemes fluctuate much less compared to other funds.
 These funds are appropriate for corporate and individual investors as a
means to park their surplus funds for short periods

9. ELSS (Equity links saving scheme)

 This fund has a locking period of three years. No one can withdraw there
investment before 3years.

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  This fund also provide the benefit of 80c income tax rebate (i.e. Tax free
income up to 1, 00,000).

There are several ways for investment and disinvestments

in mutual funds such as:
 Systematic Investment Plans (SIPs)
 Systematic Transfer Plans (STPs)
 Systematic Withdrawal Plans(SWPs)
 Automatic Reinvestment Plans.
 Value Averaging

1. Systematic Investment Plans ( SIP)

 SIP is investing a fixed sum periodically in a disciplined manner for long
term.
 It gives benefit of Rupee Cost averaging.
 In SIP monthly minimum Rs.500 or Rs.100 are invested.
 Interest is calculating compoundly.
 Many SIPS gives insurance benefits.
 VAP is modified version of SIP. It is Voluntary Accumulation Plan. It
allows the investor flexibility with respect to the amount and frequency
of investment.

2. Systematic Withdrawal Plan (SWP) –

 The lump sum amount is invested for one time and then fixed percent
amount is withdrawn monthly.
 Remaining amount will grow continuously.
 This plan is suitable for retired person, because it gives regular income.

3. Systematic Transfer Plan (STP) –

 Transfer on a periodic basis a specified amount from one scheme to
another within the same fund family.
 It gives option to the investor if the current fund performance in not
satisfactory.

4. Automatic Reinvestment Plans

 Reinvestment of amount of dividend made by fund in the same fund.
 In this option, the no. of units held by the investor will change with every
reinvestment.

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 The value of units will be similar to that under the dividend option.

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Mutual fund means indirect investment in share market, mutual fund has following
characteristics:

 It is a pool of money, collected from investors, invested according to

certain investment objectives
 The ownership is in the hands of the investors who have pooled in their
funds.
 The ownership of the fund is thus joint or mutual; the fund belongs to all
investors.
 Mutual Funds are also known as Financial Intermediaries
 In India, Mutual Funds are constituted as Trust.
 The investors share is denominated by ‘units’ whose value is called as Net
Asset Value (NAV) which changes every day.
 The investment portfolio is created according to the stated investment
objectives of the fund.
 It is managed by a team of investment professionals and other service
providers.
 An equity fund will invest in Equity shares, Preference Shares, Warrants
etc.
 A Debt Fund will invest in Debt Instruments only.

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The ways for investment in a scheme of a mutual fund?

Investors can contact the agents and distributors of mutual funds who are spread all over
the country for necessary information and application forms. Forms can be deposited
with mutual funds through the agents and distributors who provide such services. Mutual
funds also out with an advertisement in newspapers publishing the date of launch of the
new schemes.
Now a day, the post offices and banks also distribute the
units of mutual funds. However, the investors may please note that the mutual funds
schemes being marketed by banks and post offices should not be taken as their own
schemes and no assurance of returns is given by them. The only role of banks and post
offices is to help in distribution of mutual funds schemes to the investors. Investors
should not be carried away by commission/gifts given by agents/distributors for investing
in a particular scheme. On the other hand they must consider the track record of the
mutual fund and should take objective decisions.

Can non-resident Indians (NRIs) invest in mutual funds?

Yes, non-resident Indians can also invest in mutual funds. Necessary details in this
respect are given in the offer documents of the schemes.

How to fill up the application form of a mutual fund scheme?

An investor must mention clearly his name, address, number of units applied for and
such other information as required in the application form. He must give his bank account
number so as to avoid any fraudulent encashment of any cheque /draft issued by the
mutual fund at a later date for the purpose of dividend or repurchase. Any changes in the
address, bank account number, etc at a later date should be informed to the mutual fund
immediately.

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Diversification:
The best mutual funds design their portfolios so individual investments will
react differently to the same economic conditions. For example, economic conditions like
a rise in interest rates may cause certain securities in a diversified portfolio to decrease in
value. Other securities in the portfolio will respond to the same economic conditions by
increasing in value. When a portfolio is balanced in this way, the value of the overall
portfolio should gradually increase over time, even if some securities lose value.

Professional Management:
Most mutual funds pay topflight professionals to manage their
investments. These managers decide what securities the fund will buy and sell.

Regulatory oversight:
Mutual funds are subject to many government regulations that protect
investors from fraud.

Low cost:
Mutual fund expenses are often no more than 1.5 percent of your
investment. Expenses for Index Funds are less than that, because index funds are not
actively managed. Instead, they automatically buy stock in companies that are listed on a
specific index

Liquidity:
It's easy to get your money out of a mutual fund. Write a check, make a
call, and you've got the cash.

Convenience:
You can usually buy mutual fund shares by mail, phone, or over the
Internet.

Flexibility:
Currently most funds have regular plans, regular withdrawal plans and dividend
reinvestment schemes. A great deal of flexibility is assured in the process.

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Management risk:
When you invest in a mutual fund, you depend on the fund's manager
to make the right decisions regarding the fund's portfolio. If the manager does not
perform as well as you had hoped, you might not make as much money on your
investment as you expected. Of course, if you invest in Index Funds, you forego
management risk, because these funds do not employ managers.

No Guarantees:
No investment is risk free. If the entire stock market declines in value, the
value of mutual fund shares will go down as well, no matter how balanced the portfolio.
Investors encounter fewer risks when they invest in mutual funds than when they buy and
sell stocks on their own. However, anyone who invests through a mutual fund runs the
risk of losing money.

Fees and commissions:

All funds charge administrative fees to cover their day-to-day
expenses. Some funds also charge sales commissions or "loads" to compensate brokers,
financial consultants, or financial planners. Even if you don't use a broker or other
financial adviser, you will pay a sales commission if you buy shares in a Load Fund.

Taxes:
During a typical year, most actively managed mutual funds sell anywhere from 20
to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales,
you will pay taxes on the income you receive, even if you reinvest the money you made.

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A measurement of an option position or premium in relation to the underlying
instrument. In mutual fund also there is certain amount of risk-return factor
associated according to the investment option these are as follows

Table No.1 Risk and Return of Mutual Fund

Risk Return

Equity High High

Balanced Medium Medium

Debt Low Low

Awareness about Mutual Fund?

Table No.2 Awareness about Mutual Fund

Awareness About Mutual Fund No. of Responses

(No. of persons)

Yes 324

No 46

Total 370

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Illustration No.1 Awareness about Mutual Fund

Mutual Fund Awareness

Yes No

Interpretation

As now till date people in India don’t wanted to invest in share market because then
were thinking that it is a bad thing but as the awareness about Mutual fund is increasing
as more and more private players are entering in the market. So awareness about MF is
good and it can be improved.

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Fund Preference while investing in a Mutual Fund

Table No.3 Selection of Fund in MF

Sr.No. Name of the fund Responses(No. of Age

Persons)
1 Equity Fund 146 25-40

2 Debt Fund 27 50-65

3 Balanced Fund 40 40-50

4 Tax saving Fund 57 25-60

Illustration No.2 Selection of Fund in MF

Equity
Fund

146 Debt fund

160
140 57
Balanced
120 40
100 fund
80 27 Tax saving
60 fund
Balanced fund
40
20
Equity Fund
0
25-40 50-65 40-50 25-60

Age of Investor

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Interpretation

While investing in Mutual Fund the preference for the fund are changing as per the age of
the customer means the people from the age group of 25-40 who are generating more
income, they are risk takers and most of them preferring the equity fund. As age is
increasing, the investment pattern moving towards more secured options like balanced
and debt funds. All age group people are tending to invest in Tax saving funds to avail
the tax deduction.

Factors considering most to invest in Mutual Fund

Table NO.4 Reasons to invest in Mutual Fund

Sr. No. Factors considered most while investment Responses

1 Only Investment 60

2 Good returns 80

3 Liquidity 60

Total 200

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 Illustration No.3 Reasons to invest in Mutual Fund

80

60

40 Only Investment
Good returns
20
Liquidity
Liquidity
0
returns
Good
Investment
Only

Interpretation

While investing in mutual fund 80% investors preferring more to the returns the mutual
fund is providing and 60% for the Investment and Liquidity reasons.

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

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.

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Vision of Reliance mutual funds

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.

Mission of RMF
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.

A list of sector in which Reliance mutual fund will invest most of its
assets-
 Airports
 Banks, Financial Institutions and Term Lending institutions.
 Cement
 Coal
 Construction
 Electrical and Electric Component
 Engineering
 Energy
 Industry Capital Goods
 Metals and Minerals
 Ports
 Power and Power equipment
 Road and Railways
 Telecom
 Transportation
 Urban Infrastructure
 Mining
 Aluminum

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 Why to Consider Infrastructure Mutual Fund Now?

•Stable and stronger government - easy policy making

The earlier coalition government had limited scope to thrust infrastructure related
reforms given its constitution. However stability of the new government should ease
policymaking.

• Sharp government focus on infrastructure - better implementation

The government has indicated that infrastructure is a crucial growth area and hence
one can expect better project implementation than what was witnessed in the past.
The UPA in its manifesto seeks to increase public investment into infrastructure and
plans to increase power capacity by 12,000 - 15,000 MW per year.

Entry Load of Reliance Infrastructure Mutual Fund

Subscription below Rs. 2 Crores: 2.25%

Between Rs. 2 and 5 Crores: 1.25%
Above Rs. 5 Crores: Nil
Exit Load of Reliance Infrastructure Mutual Fund

1% if redeemed within a year of allotment

Nil if redeemed after a year of allotment
Nil if subscription is more than Rs. 5 crores

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Schemes

To make their packages more attractive, Reliance Mutual Fund created proposals called
The Equity/ Growth scheme, Debt/Income Scheme, and Sector Specific Scheme.

1. Equity/ Growth 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.

2. Debt/Income Scheme
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.

3. Sector Specific Scheme

Returns on Sector Specific Scheme are dependent
on the performance of the industry at which your money is invested upon. Compared to
diversified 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.

Features related to Reliance mutual funds

 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 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.

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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.

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.

2
Reasons to invest in Reliance Money

Table 5. USP of Reliance Money

Sr. No. Factors Responses
(No. of Persons)
1 Innovative Products 35
2 Good returns 20
3 Good Brand Name 30
4 Good Marketing strategy 15

Illustration 4. USP of Reliance Money

Responses (No. of Persons)

15

35
1 Innovative Products
2 Good returns
3 Good Brand Name
30
4 Good Marketing strategy

20

INTERPRETATION:

Innovative Products and good brand name are the main success factor for Reliance Life
Insurance. 35% customers are attracted due to the Innovative products offered by
Reliance Money So if Reliance Money wants to penetrate its market share they should
improve the should give more emphasis on marketing strategy, improving the distribution
channel etc.

2
 Major Competitor of Reliance Mutual Fund

ORIGIN OF HDFC MUTUAL FUND

HDFC Asset Management Company Limited(AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies
Act, 1956, on December 10, 1999, and was approved to act as an Asset Management
Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.
In terms of the Investment Management Agreement, the Trustee has appointed the
HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up
capital of the AMC is Rs. 25.161 crore.

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Products of HDFC Mutual Funds

Equity / Growth Fund Liquid Funds

Invest primarily in equity and Provide high level of liquidity
equity related instruments. by investing in money market
and debt instruments.

Children's Gift Fund Debt/ Income Fund

Children's Gift Fund Invest in money market and
debt instruments and provide
optimum balance of yield, ...

Fixed Maturity Plan Quarterly Interval Fund

Invest primarily in Debt / Money The primary objective of the
Market Instruments and Scheme is to generate
Government Securities... regular income through
investment...

2
 ICICI DIRECT

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 IPO’s, Mutual Funds and Bonds. Trading is available in BSE and NSE
ICICI Direct offers 3 different online trading platforms to its customers Type of Account

1. Share Trading Account

Share Trading Account by ICICI Direct is primarily for buying
and selling of stocks in BSE and NSE.This account allows Cash Trading, Margin
Trading, Margin PLUS Trading, Spot Trading, Buy Today, Sell Tomorrow and Call and
Trade on phone.ICICI Direct.com website is the primary trading platform for this trading
account. They also provide installable application terminal based application for high
volume trader.

2. Wise Investment Account-

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 Tax Saving
Bonds.
3. Active Trader account
It gives more personalized investment options to the
investors. It allows investor to use online and offline stock trading. It also provides
with independent market expertise and support through a dedicated Relationship
Manager from ICICI. Active Trader also provides commodity trading.

2
Introduction

In India, a DEMAT Account the abbreviation for dematerialized account, is 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 stock broker. This account is 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 possess a Permanent Account Number (PAN), and the
deadline for submission of PAN details to the depository lapsed on January 2007.

Procedure

1. Fill DEMAT request form (DRF) (obtained from a depository participant or DP with
whom your depository account is opened).

2. Deface the share certificate(s) you want to dematerialize by writing across

Surrendered for dematerialization.

3. Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer /
their R&T Agent.

After dematerialization, your depository account with your DP would be credited with
the dematerialized securities.

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o Reduction in paperwork involved in transfer of securities;
o Reduction in transaction cost;
o A safe and convenient way to hold securities;
o Immediate transfer of securities;
o No stamp duty on transfer of securities;
o Elimination of risks associated with physical certificates such as bad delivery,
fake securities, delays, thefts etc.;
o No odd lot problem, even one share can be sold;
o Nomination facility;
o Change in address recorded with DP gets registered with all companies in which
investor holds securities electronically eliminating the need to correspond with
each of them separately;
o Transmission of securities is done by DP eliminating correspondence with
companies;
o Automatic credit into Demat account of shares, arising out of
bonus/split/consolidation/merger etc.
o Holding investments in equity and debt instruments in a single account.

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 “Success is a journey, not a destination’’

Reliance Money – Transacting and investing simplified. Reliance Money transact in

most secured, cost effective manner. Now, change the way you transact and invest in
financial products and services.
Reliance Money offers the option of choosing from a wide range of
asset classes like- Equity, Equity & Commodity Derivatives, Mutual funds, Portfolio
Management Services, Wealth Management Services, Gold coins, IPO’s offshore
investments, life & general insurances or avail money transfer and money changing
services, You can do it all through reliance money.
Simply open a reliance money account and enjoy the convenience of handling all your
key financial transactions through this one window.
There are many broking houses doing business in India and they
charge 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 it’s
charging the lowest brokerage in the market which is just 1 paisa on every executive
trade irrespective of the volume traded. Reliance Money, the brokerage and distribution
arm of Reliance ADA Group, aims to tap investors in the smaller towns and cities

2
through a flat 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 customer
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. Reliance
Money, the financial services division of Anil Dhirubhai Ambani Group-promoted
Reliance Capital, is bringing to the market pre-paid cards in denominations of Rs500,
Rs1000, Rs 2500, Rs 5000, Rs 10000

Validity Turnover limit

Access (whichever is earlier)
Time validity Turnover Non-Delivery Delivery
Fee(Rs.)
validity Turnover Turnover
500 1 year Rs.2lac Rs. 2lac
1000 2 months Rs.1cr. Rs. 90lac Rs.10lac
2500 6 months Rs.3 cr. Rs. 2.7cr. Rs.30lac
5000 12 months Rs.7 cr. Rs. 6.3cr. Rs.70lac
10000 12 months Rs.20cr. Rs. 18cr. Rs.2cr.

Interpretation

These cards would offer brokerage at one-third of the rate being charged by institutional
and individual brokerage houses. Sample this. For a pre-paid card worth Rs500, an
investor can trade up to Rs2 lakh in both non delivery and delivery option.
The Rs1000 worth pre-paid card, total trading limit would reach Rs 1
crore, of which Rs 90lakhs is for the non delivery segment and Rs10 lakh for delivery-
based activities.

2
 For Rs2500 pre-paid card, total trading limit is fixed at Rs3 crore, of
which Rs2.70crore is for the non delivery option and Rs 30 lakhs for delivery option.
For the Rs 5000 pre-paid card, the total trading limit is Rs 7 crore, out of
which Rs 6.30crore is for non delivery option and Rs 70 lakhs for delivery option.
For the Rs.10000 pre paid card, the total trading limit is Rs 20crore, out
of which Rs 18 crore is for non delivery option and Rs 2 crore for delivery option.
Reliance Money offers most competitive brokerage rates - 0.01paise for
intraday trades and 0.05paise for delivery trades. Target low level of retail penetration in
India - less than 3 per cent of household financing savings makes it into equity markets.

Features of Reliance Money Demat Account

1. Cost Effective

You pay comparatively lower transaction fees. As an introductory offer, we invite you to
pay a flat fee of just Rs. 500/- and 750/- and transact through reliance money. This fee is
valid for 1 year or a specified transaction value.

2. It Offers a wide range of Financial Products &Services–

Through reliance money’s associates, you can transact in equity, equity and commodities
derivatives, offshore investments mutual funds, IPO’s life insurance, general insurance,
money transfer, money changing and credit cards, amongst others.

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3. Its Convenient
You can access reliance money’s services through-

 The internet
 Transaction kiosks
 The phone (call & transact)
 Our all – India network of associates on an assisted trade (through the call
centre or our network of associates) a charge of Rs 12 per executed trade
applicable.

 You get your own Demat account with reliance capital at an annual fee of
just Rs. 50/-.

 Its provides you a 3-in-1facility-

You can access your Banking, Trading and Demat account through a
single window and transfer funds across accounts seamlessly.

 Its Safe Your account is safeguarded with a unique security number that
changes every 32 seconds.
This number works as a
dynamics password to keep
your account extra safe.

 It provide you value- added services at www.reliancemoney.com, you get

Reliable research, including views of external experts with an enviable
track record

 Live news updates from Reuters and Dow Jones

 CEO’s / expert views on the economy and financial markets

 Tools that help you plan your investments, tax, retirement, etc. in the
personal finance section

 Risk Analyzer for analysis of your risk profile

2
  Asset allocators to build an appropriate investment portfolio

 Innovative use of technology for facilitating convenient

trading/investments – kiosks (similar to ATM’s)

Reliance Money Provide the kiosks (similar to ATM’s) Facilities, to their customer
through which the customers can trade on available kiosks at the particular Branch of
Reliance Money. The company is going to open these kiosks in the market as the ATM’s
of the Banks. Reliance Money provides 3 different trading platforms for equity trading:

1. Insta Trade

2. Fast Trade

2
3. Easy trade

2
What are the Necessary Documents for opening a DEMAT Account

The extent of documentation required to open a Demat account may vary according to
your relationship with the institution. If you plan to open a Demat account with a bank, a
savings, current and, or other account for which the holder have been issued a check
book, such holder has an edge over the non-account holder. In fact, banks usually offer
additional incentives to customers who open a Demat account with them. Along with the
application form, your photographs (with co-applicants) and proof of
identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client
agreement to be executed on non-judicial stamp paper.

List of documents required for opening a Demat Account

 ID Proof – Passport, Driving license, Voter ID Card(front & back), PAN

Card(front & back)

 Address Proof - latest Electricity/Landline phone bill, Passport, Driving

license, Bank Passbook, Ration card,

 Proof of Pan card (mandatory)- Self certified copy of PAN Card along
with original should be submitted for verification.

 A canceled check, preferably MICR

 Recent photographs, one and, or more For proof of identification

While they only ask for photocopies of the documents, they will need the
originals for verification.

2
Documents Required in case of an NRI
1. Proof of Residential Status, PAN Card

2. Proof Of Foreign Address

3. IS the PIS Approval Valid, enclose proof

4. Copy of Passport

5. Copy of Visa, wherever Applicable.

Customer having DMAT account in companies

Reliance 33
India bulls 25
Service Holderg Kotak Mahindra 11
ICICI Direct 23
Others 8

9%
33% Reliance
23% India bulls
Kotak Mahindra
ICICI Direct
14% 21% others

Interpretation:

This pie chart shows that 33% of customers have there DMAT account in Reliance
Money.

2
Major Competitors of Reliance Money

ICICI DIRECT

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 IPO’s, Mutual Funds and Bonds. Trading is available in BSE and NSE

ICICI Direct offers 3 different online trading platforms to its customers Type of Account

1. Share Trading Account

Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in
BSE and NSE.This account allows Cash Trading, Margin Trading, Margin PLUS
Trading, Spot Trading, Buy Today, Sell Tomorrow and Call and Trade on phone.ICICI
Direct.com website is the primary trading platform for this trading account. They also
provide installable application terminal based application for high volume trader.

2. Wise Investment Account-

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 Tax Saving Bonds.

2
3. Active Trader account

It gives more personalized investment options to the investors. It allows investor to use
online and offline stock trading. It also provides with independent market expertise and
support through a dedicated Relationship Manager from ICICI. Active Trader also
provides commodity trading.

Brokerage and fees

Account opening fees : Rs 750/- (One time non-refundable)

Brokerage:
ICICIDirect.com brokerage varies on volume of trade and inclusive of
Demat transaction charges, service taxes and courier charges for contract notes. It ranges
from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4%
to 0.85% on delivery based trades.

Disadvantages of ICICI Direct

Getting access to ICICIDirect.com website during market session can be frustrating.

2
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 participant 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.

 Shorter settlements thereby enhancing liquidity.

 Pledging of Securities.

 Electronic credit in public issue.

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

2
  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).
 Holding / Transaction details through Internet / email.
 Secured & easy transaction processing

Facilities provided by HDFC Bank Ltd.

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.

2
 A Comparative study of DEMAT Accounts

CO. Name Brokerage Trading Brokerage Total DEMAT

Charges in % as Charges cost AMC

Delivery Margin Delivery Margin

ICICI 0.75% 0.10% 2,00,000 1,500 200 1700 750

Secuirities

HDFC 0.50% 0.05% 2,00,000 1,000 100 1100 750

Secuirities

Religare 0.50% 0.05% 2,00,000 1,000 100 1100 350

India 0.50% 0.05% 2,00,000 1,000 100 1100 350

Infoline

Sharekhan 0.50% 0.05% 2,00,000 1,000 100 1100 350

Indiabulls 0.35% 0.04% 2,00,000 700 70 770 350

RELIANCE Flat Fees Of 2,00,000 500 500 199

Rs.500 included

Interpretation

There are many broking houses doing business in India like ICICI Securities, Hdfc
Securities, India Infoline, Religare, Sharekhan, India bulls. They charge 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 it’s charging the lowest brokerage in
the market which is just 1 paisa on every executive trade irrespective of the volume
traded. Reliance Money, the brokerage and distribution arm of Reliance ADA Group,
aims to tap investors in the smaller towns and cities through a flat fee structure.

2
The Flat Fee Structure of Reliance Money is only Rs.500. 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 customer pays a percentage of the amount transacted by him.
Reliance Money’s brokerage rates are quite competitive.

Reliance Money, the financial services division of Anil Dhirubhai Ambani Group-
promoted Reliance Capital, is bringing to the market pre-paid cards in denominations
of Rs500, Rs1000, Rs 2500, Rs 5000, Rs 10000.

These cards would offer brokerage at one-third of the rate being charged by institutional
and individual brokerage houses. Sample this. For a pre-paid card worth Rs500, an
investor can trade up to Rs2 lakh in both non delivery and delivery option.

Brokerage charges of Reliance money is only Rs.500 which is very less as compare to
others.

Total cost on trading of Rs.2, 00,000 is only Rs.500 which is the smallest amount spend
on trading as compare to others.

Annual Maintenance charges (AMC) of Reliance Money Demat Account is only

Rs.200. Other Brokerage Houses has their AMC’s of Rs.350 or more which is very
excess amount as compare to Reliance money.

2
Q.1 Which banking mutual fund do you prefer for mutual Fund?

Company Name Percentages of respondents

Reliance Money 25
HDFC 10
ICICI 15

25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:

 50% of respondent have Reliance Money ,

 50% of respondent says that other%.

2
Q.2 Which banking mutual fund offer you good investment plan?

Company Name Percentage of respondent

Reliance 22
HDFC 21
ICICI 7

25

20

15

10

0
RELIANCE HDFC ICICI

INTERPRETATION:

 44% respondent for Reliance,

 42% for Hdfc,
 14% for ICICI

2
Q.3 Which banking mutual fund offer a lot of tax saving?

Company Name Percentage of respondent

Reliance 20
HDFC 15
ICICI 15

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:

 40% respondent for Reliance,

 30 % for Hdfc,
 30% for ICICI

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Q.4 Which banking mutual fund offer you a large number of product &
services?

Company Name Percentage of respondent

Reliance 22
HDFC 14
ICICI 14

25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:

 44% respondent for Reliance,

 28%forHdfc,
 28% for ICICI

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Q.5 Which banking mutual fund offer you a good e-mail facility ?

Company Name Percentage of respondent

Reliance 24

HDFC 14

ICICI 12

25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:

 48% respondent for Reliance,

 28% for Hdfc,
 24% for ICICI

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Total Responses given by respondent about Mutual Funds of different
companies.

Company Name Total Responses

Reliance Money 113
HDFC 74
ICICI 63

Represent by pie chart

120
Reliance, 113

100

80
HDFC, 74
60 ICICI, 63 Reliance
HDFC
40
ICICI
20

0
Reliance S1
HDFC
ICICI

OBSERVATION

 50% of respondent have Reliance Money, 50% of respondent says that other.

 44% respondent for Reliance, 42 % for Hdfc, 14% for ICICI.

 40% respondent for Reliance, 30 % for Hdfc, 30% for ICICI.

 44% respondent for Reliance, 28% for Hdfc, 28% for ICICI.

 48% respondent for Reliance, 28% for Hdfc, 24% for ICICI.

2
Data Analysis and Interpretation of Demat Account

Q .1 which bank is easily available every where?

Company Name Percentage of respondent

Reliance Money 18
ICICI 14
HDFC 10
Religare 08

20

15

10

0
Reliance ICICI HDFC Religare

Interpretation:-

 36% have respondent of Reliance Money,

 28% have respondent of HDFC,
 20 % have respondent of ICICI ,
 16 % have respondent of Religare

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Q.2Which banking Demat account offered you a large no. of services?

Company Name Percentage of respondent

Reliance money 22
HDFC 08
ICICI 12

Religare 08

25

20

15

10

0
RLIANCE HDFC ICICI Religare

INTERPRETATION :

 44% have respondent of Reliance Money,

 16 % have respondent of HDFC,
 24% have respondent of ICICI,
 16%have respondent Of Religare

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Q.3 Which bank provides you a better email facility?

Company Name Percentage of respondent

Reliance money 20
HDFC 08
ICICI 10
Religare 12

20

15

10

0
Reliance HDFC ICICI Religare

INTERPRETATION:

 40% have respondent of Reliance Money,

 16% have respondent of HDFC,
 20% have respondent of ICICI,
 24%have respondent of Religare.

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Q.4 Which company provide a less BROKARAGE rate?

Company Name Percentage of respondent

Reliance money 25
HDFC 10
ICICI 05
Religare 10

25

20

15

10

0
Reiance HDFC ICICI Religare

INTERPRTETATION:

 50% have respondent of Reliance Money,

 20% have respondent of HDFC,
 10% have respondent of ICICI,
 20% have respondent of Religare.

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Q. 5 Which company provide you a large number of product and services?

Company Name Percentage of respondent

Reliance money 17
HDFC 13
ICICI 14
Religare 06

18
16
14
12
10
8
6
4
2
0
Reliance HDFC ICICI Religare

INTERPRETATION:-

 34% have respondent of Reliance Money,

 26% have respondent of HDFC,
 28% have respondent of ICICI,
 12% have respondent of Religare.

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 Represent a pie chart

Religare,
17.60%
Reliance, Reliance
40.80% HDFC
ICICI,
ICICI
20.40%
Religare
HDFC,
21.20%

OBSERVATION

To study the sales and distribution management and improve the Customer Acquisition
Process by analyzing the consumer behavior, response and mindset towards the product
and services the company offers.
 40.8% have respondent of Reliance Money,
 21.20% have respondent of HDFC,
 20.40% have respondent of ICICI,
 17.60% have respondent of Religare.

2
 Reliance 33
India bulls 25
Service Holderg Kotak Mahindra 11
ICICI Direct 23
Others 8

9%
33% Reliance
23% India bulls
Kotak Mahindra
ICICI Direct
14% 21% others

Interpretation:

This pie chart shows that 33% of customers have there DMAT account in Reliance
Money.

2
Objective Of The Study

 The main objective of this project is concerned with getting the opinion of people
regarding Demat account, Mutual Funds, and other financial products, to target
them and create awareness while with the generation of leads.

 To find out the preference for Reliance Money’s Trading channel with other
company’s trading channels.

 Explore the recent developments in the Mutual funds in India.

 To give an idea about the regulations of Mutual funds & Demat.

 To find the market potential and market penetration of Reliance Money product
offerings.

 To collect the real time information about preference level of customers using
Demat account and their inclination towards various other brokerage firms.
e.g. Indiabulls, Sharekhan, Indiainfoline, Religare.

 To expand the market penetration of Reliance money.

 To increase the product awareness of Reliance money as single window shop for
investment solutions.

2
Research Methodology
Research is a systematic and continuous method of defining a
problem, collecting the facts and analyzing them, reaching conclusions and forming
generalization. Research Methodology is a way the whole Research program. It includes
the type of Research design followed, sampling design formulation method of data
collection used.
Research Methodology refers to search of knowledge .one can also
define research methodology as a scientific and systematic search for required
information on a specific topic.

Research design
Research design can be defined as the plan and structure of enquiry formulated in order
to obtain answers to research questions on business on business aspects. Research design
can be understood as that which gives the blueprint for collection, measurement and
analysis of business data. Research design is essential because it facilitates the smooth
flow of various research results can be obtained with minimum utilization of time, money
and effort.

TYPES OF RESEARCH

Descriptive Research
Descriptive research includes surveys and fact finding
enquiries of different kinds. The major purpose of Descriptive research is description of a
state of affairs as it exists at present.
Analytical Research:-

In Analytical Research, the researcher has to use facts or information already available,
and analyze these to make a critical evaluation of the material.
Scope of the study:-
The research was carried out in Nehru place, Delhi only. I have
visited people randomly in different shops, small retailers etc.

2
Sampling:

Sampling procedure:

The sample is selected in a random way, irrespective of them being investor or not or
availing the services or not. It was collected through mails and personal visits to the
known persons, by formal and informal talks and through filling up the questionnaire
prepared.

The consumers are selected by the convenience sampling method. The selection of
units from the population based on their easy availability and accessibility to the
researcher is known as convenience sampling. Convenience sampling can be used as a
part of a preliminary research that forms a basis for conducting the detailed research.
Convenience sampling is at its best in surveys dealing with an exploratory purpose
for generating ideas and hypothesis.

Sample size:
Considering the constraints it was decided to conduct the study based on sample
size of 50 people in specific age groups.

Sample design:
Data has been presented with the help of pie charts

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 METHODS OF DATA COLLECTION

In the project work Primary data secondary data (both) sources of data has been used.

1. Primary sources of data:

In the primary sources of data used Observation Method &
Questionnaire method for the present study, the survey method was used for collecting
primary data. A structured questionnaire was used for the purpose. The questionnaire
included multiple choice questions. Primary data collected by communicating with the
respondents with the help of structured questionnaire. Before undertaking the survey,
pilot test of the questionnaire was done with 50 respondents.

2. Secondary sources of data:

In the secondary sources of data is used. (Internet,
magazines ,books, journals)

Methods of Data Collection

Primary Data Secondary Data

Journals & Reports

Observation Method
Books, Magazines
Questionnaire & Newspapers

Public Records
Interview

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Findings
1. Most of the people who were surveyed are businessman,10% are
students,14% are service holder and rest 16% are ex-serviceman.
2. With the increase in cyber education, the awareness towards online share
trading has increased by leaps and bounds. This awareness is expected to
increase further with the increase in Internet education
3. Most of the people prefer to invest in stock market because of high risk and
high return.
4. Although there is sufficiently high brand equity among the target audience
yet, it is to be noted that the customers are not aware of the facilities provided
by the company meaning thereby.
5. 33% of customers have there DMAT account in Reliance Money.
6. Strategic marketing, today, has gone beyond only meeting Sales targets and
generating profit volumes.
7. The most common problem faced by people during trading is the information
related problem i.e., they don’t get the required information about trading
either online or offline.
8. Most of customer is mostly risk taker and price conscious and least number of
customers are quality conscious and variety seeker. It suggests that the
customers are ready to invest money in equity and commodity market which
is more risky than mutual fund.
9. About 20% of the people rated the products of reliance money as excellent
whereas 50% rated it as good. While some others rated it as average and a
very small portion of people rated it as poor.

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LIMITATIONS

• The time constraint was one of the major problems.

• The middle class people do not know basic concept of Mutual fund so
creating awareness is a big challenge for me.
• The findings of sample survey cannot be generalized to the entire
population, as the sample is not representative. As there is no set criterion
for selecting the sample, there is a scope for the research being influenced
by the bias of the researcher.
• The study is limited to the different schemes available under the Demat
account selected.
• The lack of information sources for the analysis part.
• Narrow minded thinking of middle class people as investment is not their
cup of tea.
• Many customers are thinking that investment in share market is very risky.
• Hesitations on the part of respondents to disclose financial information.
• Co-operation of Respondents: This has been a major problem. People
were reluctant to fill the Questionnaire or face the Interview.
• Most of the people were at their work, so they didn’t have enough time to
give all replies.

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SUGGESTION

1. Reliance Money has to add some extra features in it with aggressive marketing
promotional strategy.
2. Advertisement on television is the main source of attraction so the company must
advertise its products heavily.
3. Product must be improved.
4. There should be provision of complain suggestion boxes at each branch.

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Conclusion
Successful Trading requires complete understanding of the peculiarities of the
Indian Stock Market and also the psyche of the small investors. This study has made an
attempt to understand the financial behavior of the investors in connection with the
preferences of Brand (AMC), Products, and Channels etc. I observed that many of
people have fear of Mutual Fund and insurance policy. They think their money will not
be secure in these investment channels. They need the knowledge of Mutual Fund and
its related terms. Many of people do not have invested in mutual fund and insurance
policy due to lack of awareness although they have money to invest. As the awareness
and income is growing the number of investors are also growing.

“Brand” plays important role for the investment. People invest in those
Companies where they have faith or they are well known with them. There are many
AMCs in Delhi but only some are performing well due to Brand awareness. Some
AMCs are not performing well although some of the schemes of them are giving good
return because of not awareness about Brand. Reliance, UTI, SBIMF, ICICI Prudential
etc. they are well known Brand, they are performing well and their Assets Under
Management is larger than others whose Brand name are not well known like Principle,
Sunderam, etc.

Reliance money has a reasonable amount of Brand awareness in terms of a

premier Retail stock broking company. This brand image should be further leveraged
by the company to increase its market share over its competitors.

Distribution channels are also important for the investment. Financial Advisors
are the most preferred channel for the investment. They can change investors’ mind
from one investment option to others. Many of investors directly invest their money
through AMC because they do not have to pay entry load. Only those people invest
directly who know well about all the investment channels and its operations and those
have time.

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 Bibliography

o News Papers (Economics Times)

o Magazines (Mutual fund book)
o Television Channel (CNBC AAWAJ)

Websites:

o www.reliancemoney.com
o www.moneycontrol.com
o www.hdfc.com

o www.icicidirect.com

Reference books:

o Financial institutions and markets - L.M.BHOLE

o Investment management - V.K.BHALLA
o Market Research- G.C. Beri

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Mutual Fund

Name of the Person __________________________________________

Address _______________________________________________
_______________________________________________
Phone No. _______________________________________________
Occupation _______________________________________________
Age _______________________________________________
Education _______________________________________________

Average Annual Income

50000 -100000
100000 -200000
More than 200000

Q1) Do you know about Mutual fund?

Yes No

Q2) Do you have taken any Mutual Fund? Can you name it?

Yes No

Q3) If yes, which company’s Mutual Fund you have taken and why?
________________________________________________

For only Investment

For Good returns

For Liquidity

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Q4) which is the factor you consider the most while choosing any
Investment Option?

Returns Security of money

Q5) In which type of mutual fund, you would like to invest more?

Pure equity fund

Debt fund

Balanced fund

Tax saving fund

Q6) what is the main reason for investment in mutual fund?

Only investment

Good return

Liquidity

Q7) In which you believe while investing in mutual fund?

Risk Return

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Questionnaire 2
Q.1 which banking mutual fund do you prefer for mutual Fund?

Company Name Respondent Rate

Reliance money
HDFC
ICICI

Q.2 Which banking mutual fund offer you good investment plan?

Company Name Respondent Rate

Reliance money
HDFC
ICICI

Q.3 Which banking mutual fund offer a lot of tax saving?

Company Name Respondent Rate

Reliance money
HDFC
ICICI

Q.4 which banking mutual fund offers you a good e-mail facility?

Company Name Respondent Rate

Reliance money
HDFC
ICICI

Q.5 Which banking mutual fund offers you a large number of product &
services?

Company Name Respondent Rate

Reliance money
HDFC
ICICI

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Q .6 which bank is easily available every where?

Company Name Respondent Rate

Reliance money
HDFC
ICICI
Religare

Q.7 Which banking Demat account offered you a large no. of services?

Company Name Respondent Rate

Reliance money
HDFC
ICICI
Religare

Q. 8 Which bank provides you a better email facility?

Company Name Respondent Rate

Reliance money
HDFC
ICICI
Religare

Q. 9 which company provides a less BROKARAGE rate?

Company Name Respondent Rate

Reliance money
HDFC
ICICI
Religare

Q. 10 which company provide you a large number of product and services?

Company Name Respondent Rate

Reliance money
HDFC
ICICI
Religare

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