Field of Research:

Marketing

Abstract:

“Opportunity seldom knocks the doors”. In my case I consider myself very fortunate of
getting associated with Reliance Mutual Fund. A Detail study was conducted in selected district
of Coimbatore with the view to understand the Mutual fund market and the major players in
market.

Successful company realize that a satisfied customer is the best advertised for their
product. Profits are generated product or selling efforts, but from the satisfaction of customer.

The project is the topic “A study of consumer satisfaction of Reliance Mutual Fund in
Coimbatore”. The study was carried out from a period of three months. The main objective of
the study is to be identify the customer satisfaction on Reliance Mutual Fund in Coimbatore. The
opinion of the customer about their preference, the parameters to improve the features of
Reliance Mutual Fund and their satisfaction on service.

Mutual fund in one of the largest financial service group in the world. SCMF has been
in existence for ever 4 year now in India it is focused debt fund house with daily articulated
investment philosophy and processes.

Mutual fund have merged as strong financial product mutual fund play a vital role in bringing
stability to the financial system & mobilizing savings from small investors & allowing them to
participate in the equity and other securities of the industrial organization with less risk.

Introduction:

CUSTOMER SATISFACTION:

Whether the buyer’s satisfied after purchase defends on the officer’s performance
in relation to the buyer’s expectation. In general “satisfaction is a person’s feelings of pleasure or
disappointment resulting from comparing products perceived performance in relation to his/her
expectations.

Buyer’s Expectations:

Their Expectations are influenced by their past buying experience, friendly

associated advice , marketers and competitors information and promises. If marketers raise the
expectations too high , then the buyer is likely to be disappointed.

Definition:

Customers are the focus of marketing a force the modern marketing concept spells
out the real significance of buying behavior. All elements of marketing mix are highly integrated
with one another. They are seen through the eyes of the consumers are coordinated, so as to
product the best benefits and optimum satisfaction for the customers.

As on today companies are playing a tough competition. The customers for a wide choice
of brands to select from in order to have a wide choice of competition the companies have to do
a better job of meeting and satisfying customers needs and then their competitions.

According to Philip Kottler,”Satisfaction is a person’s feadings of pleasure or

disappointment resulting from comparing a products perceived performance in relation to his/her
expectations.

HOW TO KEEP CUSTOMER SATISFIED:

1.Quality

2.Fair price

3.Efficient Delivery

4.Effective & Economical after sales service

5.Commitment

6.Excellent customer relationship

What is mutual fund?

A mutual fund is trust that pools the savings of a number of investors who shares a common
financial goal the money thus collected is the invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciations realized are shared by its units holders in proportion to the number of units
owned by them. Thus a mutual fund is the most suitable investment for the diversified
professionally managed basket of securities at a relatively low cost.

A mutual fund is the ideal investment vehicle for today’s complex and modern financial scenario
markets for equity, share, bond and other fixed income instruments, real estate, derivatives and
other assets have become mature & information driven. Price changes in theses assets are driven
by global individual is unlikely to have the knowledge skills, inclination and time to keep tract of
events understand their implication & act speedily an individual also finds it difficult to keep
track of ownership of his asset, investments, brokerage dues and bank transaction etc.

A mutual fund is the answer to all these situation it appoints professionally qualifies and
experienced staff that managers each of these function on a full time basis the largest pool of
money collected in the fund allow it to hire such staff at a very low cast to each investor in
effect, the mutual fund vehicles exploits economies of scale in all three areas research
investments and transaction processing while the concept of individuals coming to gather to
invest money collectively in not new the MF in its present form is a both century phenomenon in
act mutual funds with different investment objectives. To day mutual funds collectively manage
almost as much as or more money as compared to banks.
The process involved in the mutual fund

A draft offer document is to be prepared at the time of launching the fund typically the MF
have to specify their investment objectives of the fund, the risk associated, the cost involved in
the process and the broad rules for entry into and exit from the fund and other area of operation .

In India as in must countries these sponsors need approval from a regular SEBI. Looks at
track records of the sponsor and its financial strength in granting approval to the fund for
commencing operations.

A sponsor then hires an asset management company to invest the funds according to the
investment objective it also given another entity to be the custodian of the assets of the fund and
perhaps a third one to handle registry work for the unit holder (subscribers) of the fund.

In the Indian context, the sponsors promote the asset management company also acts as an asset
manager for the funds collected under the schemes.
ADVANTAGES OF MUTUAL FUNDS

Professional management

MF provide the services of experienced and skilled professionals backed by a dedicated

investment research team that analyses the performance and prospects of companies and selects
suitable investment to achieve the objectives of the scheme.

Diversification

Mutual fund invest in a number of companies across a broad cross section of industries and
sectors this diversification reduce the risk because seldom do all stock decline at the same time
and in the same proportion you achieve this diversification through a MF with for less money
that you can do as your own.

Convenient administration

Investing in a MF reduces paperwork and helps you avoid many problems such as bad
deliveries, delayed payments and follow up with brokers and companies. Mutual funds savings
your times and make investing easy and convenient.

Return potential

Over a medium to long term mutual fund have the potential to provide a higher return as they
invest in a diversified basket of selected securities

Low cost

Mutual fund are relatively less expensive way to invest compared to directly investing in the
capital market because the benefits of scale in brokerage custodial and other fees translate into
lower costs for investors.
Liquidity

In open ended schemes the investors gets money back promptly at net asset value related prices
from the MF in closed end schemes the unit can be sold on a stock exchange at the prevailing of
direct repurchase at NAV related prices by the mutual fund.

Transparency

You get regular information on the value of your investment in addition to disclosure on the
specific investment made by your scheme the proportion invested in each class of asset and the
fund manager’s investment strategy and out look.

Flexibility

Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans you can systematically invest or withdrawn funds according to your needs
and convenience.

Affordability

Investor individually may lack sufficient funds to invest in high crude stock =s a mutual fund
because of it large corpus allows even a small investors to take the benefit of its investment
strategy.

Choice of schemes
 MF’s offer a family of schemes to suit your varying needs over a lifetime.

Well regulated

All mutual funds are registered with SEBI and they function with in the provisions of strict
regulation designed to protect the interests of investors. The operations of mutual funds are
regularly monitored by SEBI.

TYPES OF MUTUAL FUND SCHEMES

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial
position, risk tolerance and return expectations etc. The table below gives an overview into the
existing types of schemes in the Indus
 I
NDU S
TRY

PROFILE

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank them. The history of mutual
funds in India can be broadly divided into four distinct phases

PHASES

First Phase – 1964-87: 

 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up
by the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in place
of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6, 700 cores of assets under management.  

Second Phase – 1987-1993 (Entry of Public Sector Funds):

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed
by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund in December
1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004
cores.  

Third Phase – 1993-2003 (Entry of Private Sector Funds): 

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in
which the first Mutual Fund Regulations came into being, under which all mutual funds, except
UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund registered in July 1993.  
 The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996.  

The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions. As
at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 cores.
The Unit Trust of India with Rs.44, 541 cores of assets under management was way ahead of
other mutual funds.

Fourth Phase – since February 2003:

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India
with assets under management of Rs.29, 835 cores as at the end of January 2003, representing
broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified
Undertaking of Unit Trust of India, functioning under an administrator and under the rules
framed by Government of India and does not come under the purview of the Mutual Fund
Regulations.  

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs.76, 000 cores of assets under management
and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund
Regulations, and with recent mergers taking place among different private sector funds, the
mutual fund industry has entered its current phase of consolidation and growth.  

COMPANY PROFILE:
RELIANCE MUTUAL FUND:

The Reliance group – one of India’s largest business houses with revenues of Rs. 990
billion ($22.6 billion) that is equal to 3.5 percent of the country’s gross domestic product was
split into two.

The group – which claims to contribute nearly 10 per cent of the country’s indirect tax revenues
and over six percent of India’s exports – was divided between Mukesh Ambani and his younger
brother Anil on June 18, 2005.

The group’s activities span exploration, production, refining and marketing of oil and natural
gas, petrochemicals, textiles, financial services, insurance, power and telecom. The family also
has interests in advertising agency and life sciences.
Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with Average Assets
Under Management (AAUM) of Rs. 90,938 Crores (AAUM for Mar 08 ) and an investor base
of over 66.87Lakhs.

Reliance Mutual Fund, a part of the Reliance – Anil Dhirubhai Ambani Group, is one of the
fastest growing mutual funds in the country.
RMF offers investors a well-rounded portfolio of products to meet varying investor
requirements and has presence in 115 cities across the country. Reliance Mutual
Fund constantly endeavors to launch innovative products and customer service initiatives to
increase value to investors.

“Reliance Mutual Fund schemes are managed by Reliance Capital Asset

Management Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of
the paid-up capital of RCAM, the balance paid up capital being held by minority
shareholders.”
 Reliance Capital Ltd. 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 bankingcompanies, 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 Mutual fundhas largest AUM in India. Reliance capital asset Management is
no. 1 AMC in India but the picture is not the same in Chhattisgarh. In Chhattisgarh they are no.
2 AMC. Management of Reliancemutual fund wants to expand its feet in Chhattisgarh, before
taking any step they want to understand market & investor and distributor behavior of SMEs, so
they may plan accordingly to capture Chhattisgarh Market. In this research we have to analyze
why, how, where, when & how much an investor invest & according to it, we have to make
profile of investors. In this report I have endeavored to understand the factors affecting
Investment behavior of an investor in Chhattisgarh. This behavioral study consists of how any
investor invests in CG. What factor they consider, why these factors they consider, where do
they invest, how do they invest, purpose behind investment, size of investment, timing of
investment & duration of investment. This studygave us basis to profile investors.
COMPANY PROFILE:

VISION STATEMENT
To be a globally respected wealth creator, with an emphasis on customer care and a
culture of good corporate governance.

MISION STATEMENT
To create and nurture a world-class, high performance environment aimed at delighting
their customers.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE POLICY
Reliance Capital Asset Management Ltd. has a vision of being a leading player in
the Mutual Fund business and has achieved significant success and visibility in the market.
However, an imperative part of growth and visibility is adherence to Good Conduct in the
marketplace. At Reliance Capital Asset Management Ltd., the implementation and observance
of ethical processes and policies has helped us in standing up to the scrutiny of our domestic
and international investors.

MANAGEMENT:
The management at Reliance Capital Asset Management Ltd. is committed to good Corporate
Governance, which includes transparency and timely dissemination of information to its
investors and unit holders. The Board of Directors of RCAM is a professional body, including
well-experienced and knowledgeable Independent Members. Regular Audit Committee
meetings are conducted to review the operations and performance of the company.

EMPLOYEES 
Reliance Capital Asset Management Ltd. has at present, a code of conduct for all its officers. It
has a clearly defined prohibition on insider trading policy and regulations. The management
believes in the principles of propriety and utmost care is taken while handling public money,
making proper and adequate disclosures.
All personnel at Reliance Capital Asset Management Ltd are made aware of their rights,
obligations and duties as part of the Dealing Policy laid down in terms of SEBI guidelines.
They are taken through a well-designed HR program, conducted to impart work ethics, the
Code of Conduct, information security, Internet and e-mail usage and a host of other issues.
One of the core objectives of Reliance Capital Asset Management Ltd. is to identify issues
considered sensitive by global corporate standards, and implement policies/guidelines in
conformity with the best practices as an ongoing process. Reliance Capital Asset Management
Ltd. gives top priority to compliance in true letter and spirit, fully understanding its fiduciary
responsibilities.
SCHEMES:

A. EQUITY/GROWTH SCHEMES:

The aim of growth funds is to provide capital appreciation over the medium to long- term.
Such schemes normally invest a major part of their corpus in equities. Such funds have
comparatively high risks. These schemes provide different options to the investors like
dividend option, capital appreciation, etc. and the investors may choose an option depending
on their preferences. The investors must indicate the option in the application form. The
mutual funds also allow the investors to change the options at a later date. Growth schemes
are good for investors having a long-term outlook seeking appreciation over a period of time.

B. DEBT/INCOME SCHEMES:

The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate debentures,
Government securities and money market instruments. Such funds are less risky compared to
equity schemes. These funds are not affected because of fluctuations in equity markets.
However, opportunities of capital appreciation are also limited in such funds. The NAVs of
such funds are affected because of change in interest rates in the country. If the interest rates
fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long
term investors may not bother about these fluctuations.

C. SECTOR SPECIFIC SCHEMES:

These are the funds/schemes which invest in the securities of only those sectors or
industries as specified in the offer documents. E.g. Pharmaceuticals, Software, Fast Moving
Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent
on the performance of the respective sectors/industries. While these funds may give higher
returns, they are more risky compared to diversified funds. Investors need to keep a watch on
the performance of those sectors/industries and must exit at an appropriate time. They may
also seek advice of an expert.
PRODUCTS:
FOLLOWING ARE SOME OF THE SCHEMES LAUNCHED BY RELIANCE MUTUAL
FUND:
Reliance Growth Fund Reliance Vision Fund
(September 1995) (September 1995)
Reliance Income Fund Reliance Liquid Fund
(December 1997) (March 1998)
Reliance Medium Term Fund Reliance Short Term Fund
(August 2000) (December 2002)
Reliance Gilt Securities Fund Reliance Banking Fund
(July 2003) (May 2003)
Reliance Monthly Income Plan Reliance Diversified Power Sector Fund
(December 2003) (March 2004)
Reliance Pharma Fund Reliance Floating Rate Fund
( May 2004) (August 2004)
Reliance Media & Entertainment Fund Reliance NRI Equity Fund
(September 2004) (October 2004)
Reliance NRI Income Fund Reliance Index Fund
(October 2004) (February 2005)
Reliance Equity Opportunities Fund Reliance Regular Savings Fund
(February 2005) (May 2005)
Reliance Liquidity Fund Reliance Tax Saver (ELSS) Fund
(June 2005) (July 2005)
Reliance Fixed Tenor Fund Reliance Equity Fund
(November 2005) (February 2006)
Reliance Fixed Horizon Fund I Reliance Fixed Horizon Fund
(August 2006) (April 2006)
Reliance Fixed Horizon Fund III Reliance Fixed Horizon Fund II
(March 2007) (November 2006)
Reliance Liquid Plus Fund Reliance Long Term Equity Fund
(March 2007) (November 2006)
Reliance Long Term Equity Fund Reliance Interval Fund
(Nov 2006) (March 2007)
Reliance Fixed Horizon Fund – IV Reliance Fixed Horizon Fund –  V
 (August 2007) (September 2007)

OBJECTIVES:

 To understand the different investment options provided by RELIANC mutual funds

through its mutual fund schemes.
 To know the investors’ expectations on mutual funds offered by RELIANCE
mutual funds.
 To know the various services provided by RELIANCE AMC to its investors.
 To study the satisfaction levels of customers in RELIANCE mutual funds.
 To identify how the brand building helps in meeting the customers’ expectations to
meet their investment objectives.

SCOPE:

Scope of study is limited to the Coimbatore district and it deals with the customer
satisfaction and dissatisfaction. This idea is very useful for the marketers to take proper step in
formulating the activities and other promotional activities .Thus it enables the company to know
about the demographics of target group.

The study could give clear cut picture regarding the customers interest in purchasing
various products of Reliance Mutual Fund .The company will be know about the purchasing
pattern of the customers and their expectations.

With the short period of time the relevant data where collected and analyzed which will
be useful to the company .

LIMITATIONS:

 As the data will be collected through questionnaire, there are chances of biased
information provided by the respondent.

 The study is confined to the existing customers of RELIANCE mutual funds only.

 The survey will be limited only to Coimbatore city.

 The study does not consider the equity investment portfolio of investors.