COMPARITIVE ANALYSIS OF D-MAT ACCOUNT OF RELIANCE MONEY

Submitted towards partial fulfillment of

Bachelor of Business Administration
(Affiliated to Ch. Charan Singh University, Meerut) Academic Session

[2009-12]
Submitted By : Name: Suruchi Phougat Roll No.: 9353747 UNDER THE GUIDENCE: External Faculty Mr. Prateek Agarwal Head, New Age money Ghaziabad Internal Faculty: Mr.Surya Bhushan Faculty IMS Ghaziabad

INSTITUTE OF MANAGEMENT STUDIES

C-238, BULANDSHAHAR ROAD, LAL QUAN, PB NO-57 GHAZIABAD-201 009

Certificate of company

PREFACE
This research report has been prepared towards the partial fulfillment of Bachelor of Business Administration. This report is a Comparative Analysis Of DEMAT Account. This research report has been prepared on, Comparative Analysis of DEMAT Account at NEW AGE MONEY FRANCHISE OF RELIANCE MONEY.

Suruchi Phougat

ACKNOWLEDGEMENT
A work of this magnitude and nature would have been quite impossible to get together without a

host of helping hands. I consider myself fortunate for having such people around me and with me who did not think twice about sparing their valuable time and efforts. The work now completed bears testimony to the kind support I availed of at each stage of the conduct of my study. The study wouldnt have been completed, however without the support of some people who continually helped me during the completion of this research project, I would like to thank all my faculty members and Mr. Basant Agarwal for their guidance and support.

Suruchi Phougat

TABLE OF CONTENTS Executive Summary Introduction Of Reliance Money -Company profile

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7 13 -18 19 -24

-Products of the company Research Methodology -Objectives of the study -Research design -Sampling -Data collection and interpretation -Data Analysis and interpretation Findings Limitations Conclusion and Suggestions Appendices Bibliography

25 70 71 71

73-79 80-91 92

100 102 103 106

Executive Summary
The project work pursued as a part of BBA Curriculum. It is undertaken as a traineeship at Reliance Money Ltd. The project is done under expert supervision and guidance of Mr.Surya Bhushan (Faculty Guide IMS, Ghaziabad) and Mr. Prateek Agarwal (Head, New Age Money, GHAZIABAD) The Project is about the study of demat account and also the efforts done to make improvements in the customer acquisition process for better results.

At RELIANCE MONEY, initially the trainees were imparted process and product knowledge. They were given sufficient time to know about the products and also about sales and distribution channel. Then they were placed at Reliance moneys distributor. They had to work with the sales representatives of Distributor and think of ways of improving the sales and distribution channel and implementing them. The main aim was to increase sales and for this different ways were tried and implemented. They were provided with database and had to make cold calls from the data. Canopy activity was also one of the major sources for generating business. Initially they even accompanied sales representatives to the clients place. Main objective was to know the need of the customer and how to fulfill that in the best way.

The project dealt with various fields like: 1. Mutual funds 2. Life insurance 3. Trading and demat account 4. General insurance Thus it gave trainees the opportunity to learn about all the products and with the range of products Reliance money offered it made the task a bit easier as we could fulfill the need of the customer in a better way.

Our task was divided in 4 phases:

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1. Product knowledge: This included the theoretical knowledge about the field
and products which needed to be marketed.

2. Pitching in retail sector: This included the implementation of the knowledge

imparted to us and the test of our marketing skills. Initially we were accompanied by other sales executive so that we can learn how to deal with the customers and understand their need. This also enhanced our interpersonal skills and confidence level.

3. Implementation in retail sector and pitching in corporate: By the start

of this phase we were confident enough about the pitching and fulfilling the needs of the customer in the retail sector. This also included of the ways we should pitch the corporate.

4. Implementation at corporate levels: This included the implementation of

the all the knowledge and ways learnt for the pitching and extracting business out of the corporate. With the end of 8 weeks every phase was completed and it gave us the real experience of retail as well as corporate world.

MY ROLE IN THE ORGANISATION

I worked with Reliance money with a profile of financial advisor. My profiles offer me to understand the need of the customer and provide them the best deal possible with maximization of the profit, both for the company as well as for the customer.

The most important aspect for the role of financial advisor is trust. So for fulfillment of the targets one needs to: 1. Capitalize on old and loyal clientage which can be build slowly by advising people in the best possible way.

2. Generating new leads through various activities.

COMPANY PROFILE
CHAIRMAN PROFILE:

Regarded as one of the foremost corporate leaders of contemporary India,Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group,
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namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources limited.
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), Indias largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the companys management over the next 22 years.

He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the countrys first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

He is a member of:

Wharton Board of Overseers, The Wharton School, USA Central Advisory Committee, Central Electricity Regulatory Commission Board of Governors, Indian Institute of Management, Ahmedabad Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of Indias Parliament a position he chose to resign voluntarily on March 25, 2006.

Awards and Achievements

Conferred the CEO of the Year 2004 in the Platts Global Energy Awards Rated as one of Indias Most Admired CEOs for the sixth consecutive year in the Business Barons TNS Mode opinion poll, 2004 Conferred The Entrepreneur of the Decade Award by the Bombay Management Association

, October 2002 Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001 Selected by Asiaweek magazine for its list of Leaders of the Millennium in

Business and Finance and was introduced as the only new hero in Business and Finance from India, June 1999

Organization Structure of Company

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GROUP CO. CHAIRMAN CEO STARTED SINCE NO. OF BRANCHES NO. OF FRANCHISEES INDUSTRY TYPE PRODUCTS

ANIL DHIRUBHAI AMBANI Mr. ANIL AMBANI Mr. SUDEEP BANDOPADHAY Publicly launched On: April 11, 2007 More than 120 Branches More than 1500 Franchisees Share Broking Firm Equity IPOs Derivatives Commodities Trading Mutual Funds Insurance Offshore Investment

Structure of Company

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Reliance Money is a part of Reliance Capital that comes under Anil Dhirubhai Ambani Group (ADAG). It is a broking house that provides its customers with Online as well as Offline Trading Facility. Well, Reliance Money is the electronic transaction platform associated with Reliance Capital, one of India's leading and fastest growing private sector financial services companies, ranked amongst the top 3 private sector financial services and banking companies, in

terms of net worth. Reliance Money offers a comprehensive platform, offering an investment avenue for a wide range of asset classes. Its endeavor is to change the way India transacts in financial markets and avails financial services. Reliance Money offers a single window facility, enabling you to access, amongst others Equity, Equity and Commodity Derivatives, Offshore Investments, IPOs, Mutual Funds, Life Insurance and General Insurance products. Reliance Money is the most cost-effective, convenient and secure way to transact in a wide range of financial products and services.
Reliance Capital is one of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other activities in financial services.

We all know the effect of the

word Reliance on us. A company which has entered almost every arena of business and created wonders. Every project taken up by the company turns into a golden project. The company has something, which we can call as, The Midas Touch. Reliance Capital Ltd is a part of the Reliance Anil Dhirubhai Ambani Group. Reliance Money is a part of Reliance Capital that comes under Anil Dhirubhai Ambani Group (ADAG). It is a broking house that provides its customers with Online as well as Offline Trading Facility. Reliance Money is the electronic transaction platform associated with Reliance Capital, one of Indias leading and fastest growing private sector financial services companies, ranked amongst the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Money offers a comprehensive platform, offering an investment avenue for a wide range of asset classes.

Its endeavor is to change the way India transacts in financial markets and avails financial services. Reliance Money offers a single window facility, enabling you to access, amongst others Equity, Equity and Commodity Derivatives, Offshore Investments, IPOs, Mutual Funds, Life Insurance and General Insurance products. Reliance Money is promoted by Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sector 13

financial services and banking companies, in terms of net worth. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group. Reliance Money provides a comprehensive platform, offering an investment avenue for a wide range of asset classes. Its endeavor is to change the way India transacts in financial market and avails financial services. Reliance Money offers a single window facility, enabling you to access amongst others, Equities, Equity and Commodity derivatives, Offshore Investments, IPOs, Mutual Funds, Life Insurance and General Insurance. Advantages offered by Reliance money over other companies:

Cost Effective Convenience Security Single Window for Multiple Products 3 in 1 Integrated Access Demat Account with Reliance Capital Other Services like research, live news from Reuter and Dow Jones, etc.

Vision
Empowering everyone live, their dreams we will leverage our strength in executing complex global scale projects to make leading edge in broking

services, affordable by all individual investors in India. We will offer unparalleled value to create investor delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders while enabling millions of Indians knowledge workers to deliver their services globally.

Mission
Our Mission is to keep the customer satisfaction by Creating unmatched value for everyone through dependable, effective, transparent and profitable broking services as focal point of all our operations, adopt the best international practices in customer service, be the most innovative in product development, establish presence all over India, ensure sustained value addition to all stake holders and to uphold Corporate Value & Corporate Governance.

Guiding Principles

Customer Care and Satisfaction Corporate Governance Creativity and Innovation Competitiveness

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Reliance Money is a Broking house that offers Online as well as Offline Trading Facility to
its customers. The Products Offered by Reliance Money are:

A: Reliance IPo B. Reliance Insurance : -Reliance Life Insurance - Reliance General Insurance C. Reliance Commodity D. Reliance Mutual Fund E. Reliance Credit Card F. Reliance Offshore Investment G. Reliance D-Mat Account

Reliance Initial Public Offering IPO

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Basically, Share Market can be divided into two parts, 1. Primary Market: It is the market where new issues of securities are offered to the investors.

2. Secondary Market: An investor of a secondary market buys a security from another participant of the same and not from any issuing corporation (as in case of Primary Market). Shares issued in Secondary Market are known as IPOs. Thus, When an unlisted company makes either a fresh issue of securities ( Through primary markets ) or an offer for sale of its existing securities or both for the first time to the public then that is known as an IPO

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned

companies looking to become publicly traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market. Also referred to as a public offering. IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value.

Reliance Insurance

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There are good times and bad times during every stage of our lives, and being financially prepared to face all kinds of situations makes the journey of life a lot easier and certainly more. The Financial Product that helps in this is Insurance. Insurance is a contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients risks to make payments more affordable for the insured. Insurance is of two types: Life Insurance General Insurance

"Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event."

Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the

premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. For Example, in a Life Policy, by paying a premium to the Insurer, the family of the insured person receives a fixed compensation on the death of the insured. Reliance Life Insurance would strive hard to achieve the following goals:Emerge as transnational Life Insurer of global scale and standard Achieve impeccable reputation and credentials through best business practices

Vision: Empowering everyone live their dreams Mission: Create unmatched value for everyone through dependable, effective, transparent and profitable life insurance and pension plans
o o o o o

Guiding Principles Customer Care and Satisfaction Corporate Governance Creativity and Innovation Competitiveness

Life Insurance Products Offered by Reliance Money :

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Individual Plans 1. Savings (Endowment) Reliance Endowment Plan Reliance Special Endowment Plan Reliance Cash Flow Plan Reliance Child Plan Reliance Whole Life Plan Reliance Connect 2 Life Plan 2. Retirement Reliance Golden Years Plan Reliance Golden Years Plan Value Reliance Golden Years Plan Plus 3. Unit Linked Reliance Automatic Investment Plan Reliance Money Guarantee Plan Reliance Market Return Plan 4. Risk / Protection Reliance Term Plan Reliance Simple Term Plan Reliance Special Term Plan Reliance Credit Guardian Plan Reliance Special Credit Guardian Plan

Employee Benefit Plans 1. Risk (Protection) Reliance Group Term Assurance Policy Reliance EDLI Scheme 2. Pensions Reliance Group Gratuity Policy Reliance Group Superannuation Policy

Reliance Automatic Investment Plan at a glance Basic Plan Age Minimum at 30 days Maximum 65 years last birthday

Entry Age Maturity Premium Paying Term Min Sum Regular / Limited Premium: Annualised Premium for 5 years or Annualised Assured Premium for half of the policy term, whichever higher Single Premium 125% of the single premium amount Max Sum No Limit Assured 5 years 30 years at 18 years last birthday 80 years last birthday

Money Guarantee Plan Key Features Capital Guarantee: The sum of all premiums paid is guaranteed on maturity or on death before the maturity. Capital Guarantee is available on both the basic premiums as well as on top-up premiums Unique Return Shield feature to protect your returns Choice to invest from 3 pre-packaged investment fund options

Reliance Group Gratuity Plan

This is a unit linked group Gratuity product with three different fund options, namely Capital Secure, Growth and Balanced Funds. It enables employers / trustees with more than 20 employees to outsource the management of their employees Gratuity funds and the related administration to Reliance Life Insurance Company Limited. 23

Policy Conditions

Minimum/Maximum annual past service gratuity contribution Rs.200000/no limit Minimum/Maximum Entry Age - 18 years last birthday/64 years last birthday Maximum Maturity Age - 65 years last birthday Minimum Policy Term - 1 year Minimum/maximum Insured death benefit sum assured Rs.1000 per member/no limits Reliance Group Gratuity Plan is a unit linked Plan where the employer can choose

The Plan :The

for each member past service gratuity to be paid out to the employee and a level of insured death benefit, subject to a minimum insured death benefit of Rs.1000 per member. This insurance premium will be quoted by us and will be payable over and above the past service gratuity liability contributions. Each past service gratuity liability contribution received will be utilized to purchase units in the unit-linked funds chosen by the employer / trustees. The fund options have different time horizons, risk profiles and return levels.
Capital Secure Fund:

The investment objective of the Capital Secure fund is to maintain the value of

all past service gratuity liability contributions (net of charges). The current asset allocation limits are: 100% Government securities and bank deposits with duration of less than 180 days.

Time horizon Short, Risk Level Low, Level of expected returns Low

The contributions in Capital Secure Fund must not exceed 20% of the total allocated contributions at any time.
Balanced Fund:

The investment objective of the balanced fund is to provide policyholders with

investment returns which exceed the rate of inflation in the long term while maintaining a low probability of negative investment returns. The current asset allocation limits are: 80% min

Government securities and corporate bonds & 20% max Equities. Time horizon Medium, Risk Level Low-medium, Level of expected returns - Medium
Growth Fund:

The investment objective of the Growth fund is to provide policyholders with

investment returns which exceed the rate of inflation in the long term while maintaining a moderate probability of negative investment returns. The current asset allocation limits are 60% min in Government securities, corporate bonds and bank deposits & 40% max in Equities. Time horizon Long, Risk Level Medium-High, Level of expected returns Medium Insurance For Women Prior to nationalization (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalization of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time. At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax.
,

Medical And Non-Medical Schemes Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, Companies has been extending insurance cover without any medical examination, subject to certain conditions. Keyman Insurance Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman.

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TAX BENEFITS OF INSURANCE:The tax breaks that are available under our various insurance and pension policies are described below: 1. Life insurance plans are eligible for deduction under Sec. 80C. 2. Pension plans are eligible for a deduction under Sec. 80CCC. 3. Health insurance plans/riders are eligible for deduction under Sec. 80D. 4. The proceeds or withdrawals of our life insurance policies are exempt under Sec 10(10D), subject to norms prescribed in that section.

Unit Linked Insurance Plan

ULIPs have been selling like proverbial hot cakes in the recent past and they are likely to continue to outsell their plain vanilla counterparts going ahead. Earlier there were these gamuts of traditional products, for instance Endowment Plans; Money back plans etc, then came the concept of Unit Link Insurance Plans, which today has caught the fancy of many people. Unit Link plans work like a combination of Mutual Funds and Life Insurance, just like in Mutual Funds the Investment here is also broken up into units based on the current NAV, these products are termed as Unit Linked plans because the Investment is broken up into units.

For instance if you were to invest Rs 10000, it would be broken into 3 component 1. Charges- These are charges that the Insurance company deducts from your premium, a major chunk of charges goes into paying commission to the Agent for sourcing the business. 2. Mortality Expense- Mortality expenses are not as high as agent commission, they approximately tend to be around Rs100/Lakh for a 30 yr old man. In case of a death claim

of 1 lakh, the insurance company can make this claim with a mere Rs100 deducted from you, now this is made possible because mortality charge is deducted from every customer who has invested in the plan. In this manner the Insurance company collects a substantial portion and not every person dies at the same time leading to only a few claims in a single year. 3. Investment After the above 2 deductions, the balance is invested on behalf of the customers, so in reality if the current NAV is 10, and a customer has paid a premium of 10,000, then allotment of units would be 10,000 (charges + Mortality expense) current NAV . The same process is repeated in the following years when premiums are paid however in the following years the charges tend to be lower as insurance charge lesser after the 1st year. Mortality Cost however goes up with age but does not increase substantially for a younger person in his 20s or 30s as a result of which the money allotted towards Investment goes up. 4. Unit Link plans give the flexibility to withdraw your investments earlier then Traditional Plans, but withdrawals can decrease the Insurance cover you have opted for. The other thing to keep in mind is the tax implication of making early withdrawals, from the returns point of view Unit link plans give you a chance of choosing your own Investment Options, which could be Debt, Equity or Balanced (combination or both) whereas traditional plans have primarily invested in debt instruments like Govt. Bonds where the security is ensured but returns may not be very high.

Unit link plans also give a greater amount of flexibility in terms of your policy not lapsing if premium in a year or two is not paid. The other interesting option that these plans offer is the choice to decide your own Insurance cover in the beginning. Flexibility wise Unit Link plans definitely score over traditional plans; even they tend to be more transparent.

However there is a greater risk element when someone goes in for an equity option, but to take care of this problem, Unit link plans have a switch over option which allows you to switch from an 27

equity option to debt or balanced and come back to equity when one finds its appropriate CLAIMS In case of Critical illness, Total and permanent disability or Death claim please log the claim and submit listed documents either directly to the Claims department, Chennai or at any of the nearest branch. Register the Claim under: 1. Death 2. Critical Illness 3. Disability

Reliance has a stiff competition in the market as there are many players apart from reliance in the market : LIFE INSURANCE COMPANIES Allianz Bajaj Life Insurance Co. Ltd AMP Sanmar Assurance Company Limited Birla Sun Life Insurance Co. Ltd GENERAL INSURANCE COMPANIES

Bajaj Allianz General Insurance Co. Ltd. Cholamandalam General Insurance Co. Ltd

HDFC Chubb General Insurance Co. Ltd Dabur CGU Life Insurance Company ICICI Lombard General Insurance Co. Ltd. Pvt. Ltd HDFC Standard Life Insurance Co. IFFCO TOKIO General Insurance Co. Ltd Ltd. ICICI Prudential Life Insurance Co National Insurance Company Ltd Ltd

ING Vysya Life Insurance Co. Pvt.

New India Assurance Company Ltd.

Ltd. Life Insurance Corporation of India Oriental Insurance Company Ltd Max NewYork Life Insurance Co. Ltd. Reliance General Insurance Co. Ltd. MetLife India Insurance Company Royal Sundaram General Insurance Co. Ltd. OM Kotak Mahindra Life Insurance Tata AIG General Insurance Co. Ltd Co. Ltd.

Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first non-life companies to get the license from the IRDA. RGICL offers an exhaustive range of insurance products that covers most risks including Property, Marine, Casualty and Liability. Vision To be an insurer of World Standards and the most preferred choice for clientele at the domestic and global level. Mission Our Mission is to keep the customer satisfaction as focal point of all our operations, adopt the best international practices in underwriting, claims and customer service, be the most innovative in product development, establish presence all over India, ensure sustained value addition to all stake holders and to uphold Corporate Value & Corporate Governance. Objectives

Make affordable insurance accessible to all Keep customer as focal point for all operations Protect policy holders interests

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Adopt best international practices in claims, underwriting and policy servicing Be the most innovative in product development Establish Pan India presence

Value propositions
Risk Evaluation: Provide expertise in risk evaluation and risk mitigation leading to the most appropriate risk transfer solution. Post sales services: Differentiate on service parameters by ensuring prompt and correct documentation& fair, transparent, speedy claims settlement. New products: Introduce innovative products suited to specific market segments Training: Extensive training to the employees involved in underwriting and claims to ensure availability of a varied experienced and competent team to cater to the customer needs. Technology: Use IT as a means to provide for a far superior customer experience in terms of access, speed and simplicity. General Insurance is a form of risk management, primarily used to hedge against the risk of a contingent loss of many articles and nominal things. This is a single policy that may cover risks in one or more of the categories set forth below. For example, auto insurance would typically cover both property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from causing an accident).G.I. may be done for follows: Automobile Insurance Aviation Insurance Equipment Breakdown insurance

Business insurance Crop Insurance Crime Insurance Credit Insurance etc.

Plans and Details:

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Reliance Mutual Fund

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group (R- ADAG) is one of the fastest growing mutual funds in the country. Reliance Mutual Fund offers investors a well rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Assets Under Management (AUM) of Rs. 59,857 crore (AUM as on 30th June 2007) and an investor base of over 3.4 million. Reliance Mutual Fund constantly endeavours to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd. Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other financial services.

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Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Assets Under Management (AUM) of Rs. 70,440 crores (AUM as on 30th Sept 07) and an investor base of over 39.52 Lakhs Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest growing mutual funds in thecountry. 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 Ltd., a wholly owned subsidiary of Reliance Capital Ltd. Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services. AUM Source : http://www.amfiindia.com/ Sponsor : Reliance Capital Limited. Trustee : Reliance Capital Trustee Co. Limited.

Investment Manager : Reliance Capital Asset Management Limited. The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956.

It is an investment vehicle which is comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market securities and similar assets. Mutual funds are operated by money mangers, who invest the funds capital and attempt to produce capital gains and income for the funds investors. A mutual funds portfolio is structured and maintained to match the investment objectives stated in its prospectus. One of the main advantages of a mutual fund is that it gives small investors access to a well-diversified portfolio of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital. Each shareholder participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued and can typically be purchased or redeemed as needed at the current net asset value per share (NAVPS). Mutual funds are of following types: Open-end fund Exchange-traded funds Equity funds

Capitalization Growth vs. value Index funds versus active management

Bond funds Money market funds Funds of funds Hedge funds

Asset Allocation Pattern

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Instrument Equity and Equity related Instruments Debt Instruments

Asset Allocation (%) At least 60%

Risk Profile Medium to High Low to Medium

Up to 30%

Money Market Instruments

Up to 10%

Low to Medium

Load Structure
Entry Load For Amount below Rs. 2 crore For Amount of Rs. 2 crore & above but below Rs. 5 crore For Subscription of Rs. 5 crore & above 2.25% 1.25% Nil

Exit Load

Nil

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group (RADAG) is one of the fastest growing mutual funds in the country. Reliance Mutual Fund offers

investors a well-rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a presence in over 80 cities across India, an investor base of over 2 million and manages assets over Rs. 26,314 crore as on June 30, 2006 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 Ltd., a wholly-owned subsidiary of Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group (R-ADAG) is one of the fastest growing mutual funds in the country. Reliance Mutual Fund offers investors a well-rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a presence in over 80 cities across India, an investor base of over 2 million and manages assets over Rs. 26,314 crore as on June 30, 2006. Reliance Mutual Fund constantly endeavours to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly-owned subsidiary of Reliance Capital Ltd.India is one of the fastest growing economies in the world. Today, many Indian companies are delivering world-class performance. The growing level of Foreign Direct Investment (FDI) in various sectors of industry is providing the much needed impetus to industry growth.A good number of Indian blue chip companies, having strong cash flows are acquiring global companies. The buy-outs are helping them in acquiring a ready front. This coupled with the cost competitive back-end in India offers a strategic fit. Reliance Vision Fund It was launched in October 1995. The fund invests in large cap, highly liquid stocks with good fundamentals and long-term prospects. Long-term investors, looking at bringing stability in their portfolio should invest in Reliance Vision Fund.

Investment Objective of Reliance Vision Fund: The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity-related securities through a research-based 37 investment approach.

Choice of Plans: A. Growth Plan : The Growth Plan is designed for investors interested in capital appreciation on their investment and not in regular income. Accordingly, the Scheme will not declare dividends under the Growth Plan. The income earned on the Growth Plans corpus will remain invested in the Growth Plan. The Growth Plan has two options : Growth Option : Under this Option, there will be no distribution of income and the returns to the investor is only by way of capital gains/appreciation, if any, through redemption at applicable NAV of the units held by them. Bonus Option : The Growth Plan has a Bonus Option. B. Dividend Plan : The Dividend Plan has been designed for investors who require regular income in the form of dividends. Under the Dividend Plan, the Scheme will endeavour to make regular dividend payments to the unit holders. Dividend will be distributed from the available distributable surplus after the deduction of TDS and applicable surcharge, if any. Dividend Plan has two options : Dividend Payout Option : Under this option the Dividend declared under the dividend plan will be paid to the unit holders within 30 days from the declaration of the dividend. Dividend Re-investment Option : The Dividend Plan has a Reinvestment Option whereby the dividend distributed under the plan will be automatically reinvested at the ex-dividend NAV on the transaction day following the date of declaration of dividend and additional units will be alloted accordingly. C. Systematic Investment Plan: Customer can invest on a Monthly or Quarterly basis, a minimum sum of Rs. 500/- or Rs. 1500/- respectively and in multiples of Re.1/-thereafter.

D. Systematic Withdrawal Plan: You can withdraw from your investments on a Monthly or Quarterly basis, a minimum sum of Rs. 500/- and in multiples of Rs.100/-thereafter.

Schemes Offered by Reliance Money: Various Schemes are as follows: 1. 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. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. These Schemes are: Reliance Equity Fund Reliance Growth Fund Reliance Vision Fund Reliance Tax Saver (ELSS)Fund Reliance Equity Opportunities Fund Reliance Long Term Equity Fund etc.

2. 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 less affected because of fluctuations in equity markets. However, long term investors may not bother about these fluctuations.

39

These schemes are: Reliance Interval Fund Reliance Income Fund Reliance Liquid Fund Reliance Liquid Plus Fund Reliance Fixed Horizon Fund III Reliance Monthly Income Plan Reliance Short Term Fund Reliance Fixed Maturity Fund Series-I

3. 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. These schemes are: Reliance Banking Fund Reliance Pharma Fund Reliance Diversified Power Sector Fund Reliance Media & Entertainment Fund

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group (R- ADAG) is one of the fastest growing mutual funds in the country. Reliance Mutual Fund offers investors a well rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a presence in over 115 cities across the country, an investor base of over 4.1 Million and manages assets over Rs. 49019 crore as on 31st Jan 2010. Reliance Mutual Fund constantly endeavor to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd.

Reliance Money is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Money has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other financial services.

DIFFERENT SCHEMES OF RELIANCE MUTUAL FUND

The different schemes offered to various kinds of investors by Reliance mutual fund can be broadly classified into three categories Equity, Debt and sector specific. Each of these categories have different investment objectives and there fore has different portfolio.
o

Equity Schemes

Reliance Growth Fund Reliance Vision Fund Reliance NRI Equity Fund Reliance Equity Opportunities Fund Reliance Index Fund Reliance Tax Saver Fund Reliance Equity Fund

Debt Schemes

Reliance Income Fund 41

Reliance Medium Term Fund Reliance Short Term Fund Reliance Liquid Fund Reliance Monthly Income Plan Reliance Gilt Securities Fund Reliance Floating Rate Fund Reliance NRI Income Fund

Sector Specific Schemes

Reliance Banking Fund Reliance Pharma Fund Reliance Media and Entertainment Fund Reliance Diversified Power Sector Fund

As I was more involved in the understanding and promotion of the NFO of Reliance Equity Fund during the initial part of my training. I would like to summarize it in brief.

Reliance Commodities

A commodity is something that is relatively easily traded, that can be physically delivered, and that can be stored for a reasonable period of time. It is a characteristic of commodities that prices are determined on the basis of an active market, rather than by the supplier (or other seller) on a costplus basis. Examples of commodities include not only minerals and agricultural products such as iron ore, crude oil, ethanol, sugar, coffee, aluminium, rice, wheat, gold, diamonds, or silver, but also so-called commoditised products such as personal computers. In the original and simplified sense, commodities were things of value, of uniform quality, that were produced in large quantities by many different producers; the items from each different producer are considered equivalent. It is the contract and this underlying standard that define the commodity, not any quality inherent in the product. Commodities exchanges include: Chicago Board of Trade Euronext.liffe London Metal Exchange New York Mercantile Exchange. Multi Commodity Exchange Markets for trading commodities can be very efficient, particularly if the division into pools matches demand segments. These markets will quickly respond to changes in supply and demand to find an equilibrium price and quantity

RELIANCE Offshore Investment

Offshore investment is the keeping of money in a jurisdiction other than ones country of 43

residence. Offshore jurisdictions are a commonly accepted solution to reducing excessive tax burdens levied in most countries to both large and small scale investors alike. Selected offshore domiciles are superficially viewed by some as havens used by to conceal or protect illegally acquired money from law enforcement in the investors country. Although this may be the case, legitimate investors also take advantage of higher rates of return or lower rates of tax on that return offered by operating via such domiciles. The advantage to this is that such operations are both legal and less costly than the solutions offered in the investors country - or onshore. Locations favoured by investors for low rates of tax are known as offshore financial centers. Offshore solutions are accessible to anyone who can meet the minimum investment amount or pay the obligatory fees required to open such an entity. Tax is the driving force behind offshore activity. Due to offshore solutions investors are able to conduct investment activities in a profitable fashion. Often, taxes levied by an investors home country are critical to the profitablitiy of any given investment. Using offshore domiciled special purpose vehicles an investor may reduce this burden allowing the investor to achieve greater profitability overall. Another reason why offshore investment is superior to onshore investment is because it is less regulated, and the behavior of the offshore investment provider, whether he be a banker, fund manager, trustee or stock-broker, is freer than it could be in a more regulated environment. Reasons for offshore investment Avoidance of forced heir ship Asset protection Less regulated (for example, hedge funds, which thrive in low regulatory environments due to their highly aggressive investments strategies thrive in offshore jurisdictions, principally the Cayman Islands Tax advantages (legal) Money Laundering & Tax evasion (illegal)

Scheme Offered By Reliance Money: Reliance Money, the financial services arm of the Anil

Dhirubhai Ambani Group, is partnering with UK-based CMC Markets, a global player in the online derivatives trading segment, to bring overseas investment products to Indian investors. This tie-up will enable customers of Reliance Money to gain access to several offshore products including foreign equities, currency and commodities within the RBI-mandated limits. The central bank currently permits a single Indian resident to invest up to $50,000 (Rs 22.5 lakh) overseas per year, which has been raised from the earlier $25,000. CMC Markets, which has presence across more than 100 countries and has transactions in excess of $1 trillion worldwide over the past two years, offers more than 1,000 instruments across various asset classes. While further details about the tie-up were not available, the product is likely to find a larger audience among the more sophisticated investors, such as large high net worth individuals (HNIs) or institutions, who are keen on diversifying risks across various markets worldwide. For instance, an investor with Reliance Money can buy Corus shares through an account created for him or her by CMC. The shares will then be credited to the account. If the investor wants to sell, he follows the same procedure, places an order and the shares in the account are offloaded in the market.

45

RELIANCE Credit Card

A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the users account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user). It is also different from a charge card (though this name is sometimes used by the public to describe credit cards), which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to revolve their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. Credit Cards offered by Reliance Money: Reliance-Anil Dhirubhai Ambani group has joined hands with Citi bank to launch reliance credit card. In addition to usual benefits available with regular credit cards, reliance credit cards come free for life, and provide a host of benefits and reward points as part of a unique loyalty program. Reliance credit cards also offer complimentary vouchers for usage at Reliance World Outlets and Adlabs Multiplexes, Cash Advance Facility, Free Utility Bill Payment Facilities, Hospital Allowance, Free towing of Vehicles, and Zero Fuel Surcharge at IOC Petrol Pumps. Reliance Credit Cards are available in two categories - Silver and Gold. Highlights: Free for Life Card. Limit:- Silver Credit Card upto Rs.30,000 &Gold Credit Card (>)Rs.3,00,000. Get 0% Fuel Surcharge at IOC Outlets. Get complimentary joining vouchers of Reliance World outlets (For Broad Band Surfing and Online Trading) and Adlabs (For Food) worth Rs.100 each with the Reliance Silver Card and worth Rs.200 each with the Reliance Gold Card. Reliance Money provides free Gift Vouchers to its Credit Card Holder i.e. Gift Voucher of Rs.400 with Gold Credit Cards and Gift Voucher of Rs.200 with Silver Credit Cards.

 Get an allowance of Rs.500 per day, on hospitalization with the Reliance Gold Card. Pay bills of Reliance ADA group companies-Reliance Post Paid Bills, Reliance Energy Electricity Bills, Insurance Premia, Recharge of Mobile Pre-paid Cards and also for other utility companies on an on going basis by signing up once. Customer can opt for free Photo Credit Card for added Security. Reliance Credit Card holders can receive up to 5 add-on cards at no additional charges, free email statements, free alerts, and will be able to transfer money from one Visa Card to another using Citibank Online. Reliance Money Provides with Zero Loss card Liability i.e. Customer just need to give a call at the helpline no. and thus he gets a reference no. After that he does not have the liability for increasing credit limit in his card. Customer need to have another credit card (except that of Citi bank), before having Credit Cards provided by Reliance Money. Rewards Program: Reward Points Earned Earning Opportunities

5 Reward Points

For

every

Rs.150

spent

for

availing

standing

instruction facility to pay Reliance Mobile Bills (Post3 Reward Points 3 Reward Points paid) or for monthly Auto Recharge (Pre-paid). For every Rs.150 spent at Adlabs. For every Rs.150 spent on selected products and services at Reliance World and Communication Outlets.

47

1 Reward Point

For every Rs.150 spent on all other spends including other standing instructions.

RELIANCE DMAT ACCOUNT

DEMAT ACCOUNT:
Demat refers to a dematerialised account. In India, a D-Mat 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 posses a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007. Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode.

If you wish to have securities in of the

demat mode, you need to indicate the name of the depository and also

depository participant with whom you have depository account in your application. desirable that you hold securities in demat form as physical securities carry the risk of

It is, however

being fake, forged or stolen.

Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a

demat account if you want to buy or sell stocks. shares. You have to approach the

So it is just like a bank account where actual money is replaced by

DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of
shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these will show in your

demat account. So you don't have to possess any physical certificates showing that you own these
shares.

They are all held electronically in your account. As you buy and sell the shares, they are bank passbook or statement, the DP will provide you with security representing an ownership interest.

adjusted in your account. Just like a

periodic statements of holdings and transactions.

Equity

is

Stock

or

any

other

Equity is a term whose meaning depends very much on the context. In general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. An Investor can invest his money in Equity in two ways i.e. Online or Offline and for both, he needs a D-Mat A/C.

Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.Most banks are also DP participants, as are many brokers. You can choose your very own DP. To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.A broker is separate from a DP. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients. Procedure 49

1. Fill demat request form (DRF) (obtained from DP with whom your depository account is opened). 2. Deface the share certificate(s) you want to dematerialise 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. 4. After dematerialization, your depository account with your DP would be credited with the dematerialized securities. Benefits of opening a demat account: Demat account has become a necessity for all categories of investors for the following reasons/ benefits:

SEBI has made it compulsory for trades in almost all scrips to be settled in demat mode. Although, trades upto 500 shares can be settled in physical form, physical settlement is virtually not taking place for the apprehension of bad delivery on account of mismatch of signatures, forgery of signatures, fake certificates, etc.

It is a safe and convenient way to hold securities compared to holding securities in physical form..

No stamp duty is levied on transfer of securities held in demat form. Instantaneous transfer of securities enhances liquidity. It eliminates delays, thefts, interceptions and subsequent misuse of certificates. Change of name, address, registration of power of attorney, deletion of deceased's name, etc. - can be effected across companies by one single instruction to the DP.

Each share is a market lot for the purpose of transactions - so no odd lot problem. Any number of securities can be transferred/delivered with one delivery order.

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

Reliance Money, the financial services and distribution arm of Reliance Anil Dhirubhai Ambani Group, has announced free trading accounts for a year, for customers opening

Demat accounts with the company. This initiative would increase the penetration of demat accounts in the country, which has remained stagnant at around 6 million for the last few years. Reliance Money offers a flat fee structure to its customers for trading in stocks, commodities on its trading platform, a deviation from the industry practice of charging percentage brokerage per transaction.

"We feel that a sizeable portion of Indian investors are not participating in the market for various reasons - accessibility of service from a reputed brand and price entry barrier. We have addressed both these concerns with this first-of-its-kind limited period offer," said Director and CEO, Reliance Money, Sudip Bandyopadhyay. Under this scheme, Reliance Money would be waiving off Rs 500, charged for trading upto Rs 5 lakh, for the first year, in case the customers open an account with Reliance Money during the next few weeks. Customers wanting to trade beyond Rs 5 lakh would have to pay Rs 500 for trading upto Rs 1 crore (for 2 months) or Rs 2,500 lakh for Rs 6 crore (for one year). The company would be focusing on semi-urban and rural areas with this initiative. "We expect to add over 2 lakh demat accounts with this offer with our entire effort focused to get the not-so-savvy semi-urban and rural investors to participate in the stock market, in addition to the savvy investors who are already trading on one or other platform," said Bandyopadhyay. Reliance Money has also announced its tie-up with Corporation Bank, a leading PSU bank in the country for providing broking services to the customers of Corporation Bank.

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Under the agreement, the Depository System of Corporation Bank would be linked with the Reliance Money trading platform and customers having DP accounts with Corporation Bank would also be able to trade through the Reliance Money platform. With this tie-up, 9.5 million Corporation Bank account holders are set to gain with their broking needs.

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 Moneys advantage over others is that its 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. The current leaders in the retail broking segment like ICICI Direct, India Infoline and Indiabulls offer a pay per use model where the customer pays a percentage of the amount transacted by him. Reliance Moneys 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 Rs 500, Rs 1,350 and Rs 2,500 with validity period of two months, six months and twelve months respectively. 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 Rs 500, an investor can trade upto Rs 90 lakh in futures and option segment or can undertake intra-day trade of similar amount. Besides, an investor can undertake a delivery-based activity of Rs 10 lakh. The Rs 1350 worth pre-paid card, total trading limit would reach Rs 3 crore, of which Rs 2.70 crore is for the F&O segment and balance Rs 30 lakh for delivery-based activities. For Rs 2500 pre-paid card, total trading limit is fixed at Rs 16 crore, that include F&O limit of Rs

15.40 crore and balance Rs 60 lakh for delivery-based broking.

Converted to percentage terms - Reliance Money offers most competitive brokerage rates - 0.05% for delivery trades and 0.005% for non-delivery trades (fixed fee of Rs. 500/- for delivery trades upto Rs. 10 lacs and/or non-delivery trades upto Rs. 1 crore). Industry rates vary between 0.4% to 0.85% for delivery trades and between 0.05% and 0.10% for non delivery trades. Reliance Money consumers can trade in equities, commodities and offshore Investments , IPOs, Mutual Funds, Insurance, Money transfer and Money Changing - all through single window, both off-line and online.

Reliance Money has already tied-up with CMC Capital Plc UK to offer offshore Investment products to Indian consumers as per guidelines. In other it can be defined as: Demat Account is an account that holds your shares in Electronic Format and is compulsory for trading in Shares, F&O, Commodities, etc. Demat account, short term for dematerialized account is a type of banking account which dematerialize the paper-based physical shares. The idea 53

of dematerialized account is to avoid the need to hold physical sharesthe shares are virtually being bought and sold through the banking account. It is an electronic securities account, like bank account for your investments. u do not need to hold

stocks etc in physical form. Earlier shares existed only in the paper format. But now, with the advent of online trading, shares exist in the digital form too. As it is in the digital form, it is called demat meaning Dematerialized - that is, it is no longer in the material (paper) form. Demat accounts are needed to operate with online shares Shares can be in the form of paper or in the digital form (for online trading). All shares, debentures, bonds are traded in DEMAT format only and one has to have a account with a Depositary participant who deals with this paperless shares This account is popular in India and also the SEBI mandates demat account for share trading above 500 shares. D-Mat A/C Provided By Reliance Money: Reliance Money provide its customers with the D-Mat A/C, through which they can invest their money in any Financial Instrument like Equity, Derivatives, IPOs, Life Insurance, General Insurance etc. Reliance Money handles all the key financial transactions through this Single Window. D-Mat A/C is an account in which securities are kept in Electronic form. The Scheme is as follow:

1. Cost of Having D-Mat A/C : Opening Charges: With reliance money the A/C opening charges are Rs.750. These charges are for life time. Annual Maintenance Charges: With Reliance Money the A.M.C. is just Rs.50 that is lowest in The Share Broking Industry.

 No brokerage and Service Charge: Reliance Money is the first and foremost company that does not charges Brokerage and Service charge on the Sale and Purchase of Security, otherwise the Industry wide Brokerage rate lies between 0.10 to 0.75 paise on Delivery based Trading and 0.01 to 0.50 paise on Intraday Trading.

2. Flat Fee Structure : The current leaders in the retail broking segment like ICICI Direct, India Infoline and Indiabulls offer a pay per use model where the customer pays a percentage of the amount transacted by him. Whereas Reliance Money, aims to tap investors in the smaller towns and cities through a flat fee structure instead of percentage or per transaction brokerage system. Flat Fee is charged based on the Turnover of an Investor. This model is as follows.

FLAT FEE Rs.500 Rs.1350 Rs.2500

TIME VALIDITY 2 Months 6 Months 12 Months

TURNOVER VALIDITY Rs.1,00,00,000 Rs.3,00,00,000 Rs.6,00,00,000

TRADING LIMIT Delivery: 10 lacs Intraday: 90 lacs Delivery: 30 lacs Intraday: 2.7 Crore Delivery: 60 lacs Intraday: 5.4 Crore

Special Scheme for Small Investors: FLAT FEE Rs.500 TIMEVALIDITY 12 Months TURNOVER VALIDITY Rs.5,00,000 TRADING LIMIT Delivery: upto 5 lacs or Intraday: upto 5 lacs

55

3 -Tier Service : Reliance Money provides its customers with a three tier service i.e. interlinked DMat A/C, Trading A/C and Savings Bank A/C. This makes the customer free to trade online and makes the trading more hassle free. Reliance Money has its tie up with three banks i.e. HDFC, IDBI and UTI Bank and customer need to have his Savings Bank Account with any of these Banks for enjoying this three tier service.

3. Convenient :Customer can access the services of Reliance Money through: The Internet-mail at www.reliancemoney.com The Transaction Kiosk The Phone (Call & Transact)-call on 3988 6000 or SMS Money to 6636. The All India Network of Associates on an assisted trade(through the Call Centre or the network of associates) a charge of Rs.12 per executed trade will be applicable. 4. Safe: For Security Purpose, Reliance Money provides: User ID Password Security Token Key that has a unique, six digit no. This no. changes every 32 seconds and works as a dynamic password for keeping the account extra safe. 5. Single Window access: Through Reliance Moneys associates customer can transact in : 6. Equity

 Equity and Commodity Derivatives Mutual Funds IPOs Life Insurance General Insurance Money Transfer Money Changing Credit Cards amongst others. 7. Free Tips: Customer gets free tips, current market information and reports on their: Mobiles E-Mail IDs

8. Transaction Charges: In Online Trading per Transaction Charges are NIL whereas In Offline Trading this is Rs.12 per Transaction. 9. Value Added Services: Customers can get some value added services on

www.reliancemoney.com....Reliable Research, including views of external experts with an enviable track record. Live News Updates from Reuters and Dow Jones. CEOs/Expert views on the Economy and Financial Market. Tools that help customers to plan their investments, tax, retirement etc. in the personal finance section. Risk Analyzer for analysis of Risk Profile. 57

 Asset Allocators to build an appropriate investment portfolio. Documents: For opening a D-Mat A/C with Reliance Money, following documents are needed: Photocopy of PAN Card (both-front and back side) An address proof: Voter ID Card Passport Driving License Bank Statement (not older than 2 months)

Rent Agreement Telephone Bill (MTNL or BSNL) Post paid Mobile Bills etc.

3 Passport size photographs of the First Holder of Account, 1 Photograph of Second Holder (if any) and 1 photograph of Third Holder (if any). A Cheque Worth Rs.750 + (500, 1350, 2500).

Trading
In the developing country like India, every individual wants to invest his money in a hassle free way & in those Financial Instruments that may give maximum returns. People are now a days busy with their own works and thus prefer e-trading rather than going to the brokers and waiting for getting the delivery of shares in their Trading Account. Share market is the market for securities where organized issuance and trading of

shares takes place. Shares are certificates which represent ownership rights of theAs a basic result of all this, traditional investing has experienced a revolution due to the rise of the e-brokerage industry, which enables investors to use the internet to conduct secure trading. Two factors are contributing to the enormous growth of online investing. First, the Internet gives ready access to raw data. Second, investment houses can offer transactions at lower prices than traditional methods by eliminating the need for brokers or financial advisers. But for discussing all this, the first and foremost thing that must be known is t holder in a company. It plays an important role in channelizing capital from the investors to the business houses which consequently leads to the availability of funds for business expansion. Shares in the Share Market are either traded through:a) Stock Exchange: These are organized market places where stocks, bonds are other equivalents are traded between the buyers and sellers where exchange acts as counter-party to both the participants in case of any default. b) Over-the -Counter (OTC): These are not centralized exchanges and the trade takes place through a network of dealers. Trading is a basic economic concept that involves multiple parties participating in the voluntary negotiation and then the exchange of ones goods and services for desired goods and services that someone else possesses.

The advent of money as a medium of exchange has allowed trade to be conducted in a manner that is much simpler and effective compared to earlier forms of trade, such as bartering. In financial markets, trading also can mean performing a transaction that involves the selling and purchasing of a security. There are mainly two types of trading :1. Intra day trading: In this type of trading an investor buy and sell stocks during the same day. Intra day Traders are of two types :i.Scalp Traders: Investors who perform many trades per day for scalping out small profits 59

out of the bid-ask spread, from each trade are known as scalp traders. ii.Momentum Traders: Investors who pounce on those stocks which move significantly in one direction and book desired profit are called momentum traders. They do this within a day. 2. Delivery trading: In this type of trading an investor buys the share for holding purposes. Delivery Traders are :1. Technical Traders: They believe that buying/selling signals are present within the graphs and charts of the stock. 2. Fundamental Traders: They perform trade on the basis of study of fact-sheets of the company like historical profit graph, balance sheet, anticipated earning reports, stock splits, mergers and acquisitions, etc.

3. Swing Traders: They are basically fundamental traders who take delivery of trades for a span of short period generally more than one day. Share Broking Company offers two ways for share trading:a) Offline b) Online Offline Trading: In this form of trading the customer has to place order to the dealer of the stock broking firm either in person or over phone. Offline trading is the main form of investing the money in securities. Offline trading offers many benefits as well. 1. The one benefit that an investor appreciates the most is that they are not alone when making investment decisions. 2. There are experienced and professional brokerage companies that handle their investments for them.

3. Investors are not faced with the challenge of making these vital investment decisions; especially, if they do not have the experience necessary to make the appropriate investments. 4. Also, there is someone there to answer any questions that may cause concerns.

Online Trading: The client could place his order on his own from any place he wants, provided he has a computer with an Internet connection. Online Trading has made it easy for private investors to gain raight access to a range of different security markets that were, at one point, only reserved by the use of investment professionals. Online trading has dramatically changed over the last decade. It continues to be redefined. Services have expanded to include integrated management of additional financial accounts. It has

subsequently expanded in conjunction with ground-breaking improvements to the traditional trading interface, such as telephone interface systems. There are several wonderful reasons to invest online rather than offline trading. 1. Instant online access:- You can gain instant access to your account, the value of your portfolio updates immediately before your eyes. 2. Enter online trades at anytime during Market hours:- You can enter online trades at anytime and from anywhere. This is very convenient if you live in a different time zone than the country you are trading in. It especially fits for investors with busy schedules. 3. With online trading you are in charge:- You are in control of your investments. No sales pitches and no hassle. You decide where to invest your money. Thus, Online stock trading is the easy way to buy and sell shares from the comfort of your home. Finding a company that provides you with a secure trading account can be difficult. There are many companies that will offer you excellent services for trading, but you will want to find one that meets your needs and requirements .But you shouldnt go with a company just based on their reputation; instead you should see what they can offer you because your needs as a trader will be radically different from someone traders who have different levels of experience and who have 61

different proclivities toward risk and security. You may not always want to look towards the most economical rate of trading but make sure you work with a reputable organization and RELIANCE MONEY is one of them.

RESEARCH METHODOLOGY
To study the D-Mat Account of the RELIANCE MONEY and improve the Customer Acquisition Process by analyzing the consumer behavior, response and mindset towards the product and services the company offers. We were supposed to operate from our respective distributor after the complete product knowledge was imparted to them. We were made aware about all the products Reliance Money was providing with a more stress on their core product i.e. D-Mat account. The time duration of the project is 2 months. We were given targets to be achieved with in two months.

30 Demat Accounts per month.

OBJECTIVES OF THE STUDY

The Objectives of the Project are:

To find the market potential and market penetration of Reliance Money product offerings in New Delhi.

To collect the real time information about preference level of customers using D-Mat account and their inclination towards various other brokerage firms e.g. India bulls, Share khan, India Info line, Reliquary , Alan kit , Unicorn.

To expand the market penetration of Reliance money. To provide pricing strategy of competitors to fight cut throat competition. To increase the product awareness of Reliance money as one window shop for investment solutions.

Research Design
Research designs are concerned with turning the research question into a testing project. The best design depends on your research questions. Every design has its positive and negative sides. The research design has been considered as a "blueprint" for research, dealing with at least four problems: what questions to study, what data are relevant, what data to collect, and how to analyze the results.

Types of research Design

There are basically 3 types of research designs which are as follows: 1. Descriptive Research 2. Explanatory Research 3. Experimental research

*In my project I used the first Descriptive research design to carry on my research.

63

Sampling
For marketing research, it is must to have a good and most effective sampling plan. It is very important through which researcher could get a relevant result near to the reality. In the sampling plan researchers have to cover the whole area which is given by the Reliance money ghaziabad The sample is selected by applying some technique. The sample should ad equality represent the universe or population. The selection of sample is called sample technique. The survey is so conducted is called sample survey. Selection of units (i.e. people, organization etc.) from a given target population is called as sampling. Sampling and its study simply help the researcher to generalize the results of consumer researcher done on a specific sample, to the whole population from which it is selected. In other words, a sample is a small and finite part of a statistical population, the properties of which are analyzed studied to understand the whole population. When applied to people, sampling can be defined as a set of respondents taken from large population for the purpose of a survey. A population is a group of individuals, persons, objects or items, from which are taken from the measurement for example a population of president or professors, books or students. Sampling enables the researcher to answer the two important questions:1. What they want to generalize to?

2. Whom they should consider as population for conducting survey? When we sample, the units that we sample that are usually people suppliers with one or more responses. In this sense a specific measurement value that a sampling unit supplies. When we analyze the responses for the entire sample that we use statistics, there is a wide variety of statistical tools and techniques that can be used like mean, median and mode etc.

METHODS OF SAMPLING

65

From the above stated methods, I used RANDOM SAMPLING METHODS

MARKET SURVEY
Survey is the part of the researchers survey, also the primary technique of the data collection. Survey is classified into different types. The important classification of the survey as follows: The general survey design. The data collection method. The technology for data acquisition.

Perhaps the most important division, however, is that between longitudinal survey and crosssectional survey. In longitudinal surveys, data are collected more than ones from the same sampling units, at more or less regular intervals, whereas in cross-sectional surveys, data are collected only once. In longitudinal surveys data may be collected the same way each time, or the data collection method may vary. A panel survey is a special type of longitudinal survey. Statistical Finlands best known personal panel survey is the labor force survey. While the bestknown business panel survey is the Consumer Price Index Survey. It is important to make a distinction between the mode of administration of data collections and the technology applied in data acquisition. In the administration modes one distinguishes whether interviewers are used (interviewer administration) or whether respondents are to answer by themselves (selfadministration).

In the interviewer-administration mode interviewers readout the questions and mark down the responses interviews may be conducted either by telephone or face to face. Researchers survey conducted through face to face interaction with the shopkeeper and with the distributors.

CLASSIFICATION OF SURVEY METHODS

67

DATA COLLECTION
It is a list of questions properly selected and arranged pertaining to the investigation. Thus the researcher prepares a questionnaire having the question regarding the project and could get a good response from the respondents with adequate care. Questionnaire saves the time both researcher and peoples who questions being asked because it is a list of questions for gathering important information. Questionnaire is very simple to gathering the information regarding through same people. (In the case of this survey, the same questions asked for different investors by the researcher) hence this questionnaire saved the time of both the investors and the researcher.

TECHNIQUES OF DATA COLLECTION:

There are two techniques of collection of Data :: - Primary Data Collection : In Primary Data collection technique data is collected by doing surveys , researches and various other means of research. The data for the study is collected from primary sources. Researcher had collected information strategies from investors opinion and prepares a semi structured questionnaire with adequate care and precautions. : - Secondary Data Collection : Secondary data is data which is collected not by conducting any research rather it is collected from already published informations. Like from Magazines, Newspapers.

Data analysis and interpretation

DATA ANALYSIS
Question 1: Do you have a Demat Account ?

27%

73%

Yes No

Interpretation: If the answer is yes then continue with question 2 )

Question 2: Where do you have Demat Account?

69

100 80 60 40 20 0 India Bulls Religare India Infoline With Som e Bank

Interpretation: Around 88% of people have a/c in india infoline followed by religare is 30% and indiabulls 20%

Question 3 : In which company do you Invest ?

24% Small Cap Mid Cap Large Cap 30%

46%

Interpretation: 46% of people invest in large cap, 30% invest in mid cap and 24% in small cap.

Question 4 : On what basis you invest in stock market?

28%

30%

11% 31%

Online Research Report Friends Suggestion Regular Market Watch Help From Brokerage Firm

Interpretation: 31% people invest on the basis of regular market watch 30% on the basis of online research 28% with the help of brokerage firm and 11% by friends suggestions.

Question 5 : Reasons for having Demat account company you mentioned above ?

71

16%

52% 32%

Less Brokerage Better Services Brand Name

Interpretation: 52% of people say that less brokerage is the reasons for having a a/c in a particular company 32% of people give reasons as better services and 16% say brand name.

Question 6 : What is the level of satisfaction with the services provided by your broker ?

13%

13% 17% Highly Satisfied Satisfied Neutral Dis-Satisfied

57%

Interpretation: 57% of the people are neutral 17% are satisfied with the services 13% are dissatisfied while another 13% are highly satisfied with the services.

Question 7 : What are the reasons for Dis-Satisfaction ?

73

28% 38% Lack of Transperacy Communication Problem High Cost

34%

Interpretation: 38% are dissatisfied because of lack of transparency while 34% says high cost and another 34%says communication problem

Question 8 :What are your major expectations from a Brokerage firm ?

33%

34% Low Cost Proper Information Convenience in Dealing

33%

Interpretation: 34% expect low cost 33% expect proper information while other 33%want convenience of dealing.

Question 9 : Would you like to open a new Demat A/c if you are provided with what you want?

75

3%3%

Yes No Can't Say

94%

Interpretation: 94% of people says yes to the question asked while 3% of people say no and another 3% cant say.

Question 10 : Did you heard about Reliance Money and its Brokerage ? Answer :

5%

Yes No

95%

Interpretations: 95% of people have heard about reliance money while 5% of people have not
heard about it.

Comparative analysis

77

ONLINE BROKER

A/C OPENI NG CHARG E

ANNUAL MAINTENA NCE CHARGE

BROKERA GE (DELIVER Y) NIL

BROKERA GE (INTRADA Y) NIL

MARGIN (DELIVERY)

MARGIN (INTRADAY)

Reliance Money ICICI Direct

750

50

DEPOSITED AMOUNT

5 TIMES

750

250

0.75 %

0.05 %

DEPOSITED AMOUNT

8 TIMES

Share Khan India Bulls 5 paisa. com Motilal Oswal HDF C

750 900 550 450 799

300 NONE NONE 250 300

0.40 % 0.40 % 0.25 % 0.35 % 0.45 %

0.05 % 0.05 % 0.05 % 0.05 % 0.10 %

4 TIMES 4 TIMES 2-4 TIMES 2-4 TIMES DEPOSITED AMOUNT

8 TIMES 8 TIMES 6-8 TIMES 10 TIMES DEPOSITED AMOUNT

FINDINGS

To get initial success in this field is very difficult. Although the business generation becomes easier with time as we serve more people who then get added up in the loyal clientage.

Thus time and service are two most factors to get in this field.

Also the corporate remains a very important segment which gets business in bulk but retail cannot be left which makes your business ticking.

Customer remains in the ruling position.

Currently the main Players in Retail Brokerage Business are ICICI Direct, sharekhan, India Bulls, Motilal Oswal. Here is a study of all these rival companies of Reliance Money.

ICICI Direct
ICICIdirect.com is a single window investment platform, giving you easy access to a wide range of financial products and services including Equities, Commodities, IPOs, Mutual Funds, Derivatives & Insurance products. Our goal is to help you make the best decision regarding your financial investments. in ICICIdirect.com, your broking account, bank account and demat account are linked 79

electronically. So when you punch in a buy or sell order, the system checks the funds/ shares availability and automatically credits/debits the accounts once the order is executed by the exchange.

Brokerage and fees :

Account opening fees : Rs 750/- (One time non-refundable) Brokerage: It ranges from 0.1% to 0.15% for margin trades and 0.4% to 0.85% on delivery based trades. Advantages of ICICI Direct 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard. Trading is available in both BSE and NSE.

Disadvantages of ICICI Direct Getting access to ICICI Direct.com website during market session can be frustrating. ICICI Direct brokerage is high and not negotiable. Not all stocks are available under Margin Plus.

Sharekhan
Sharekhan is online stock trading company of SSKI Group, provider of India-based investment banking and corporate finance service. ShareKhan is one of the largest stock broking houses in the country. Sharekhans equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 250 offices around the country.

Benefits
Allow investor to buy and sell stocks online along with the following features like: multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. Online trading account for investing in Equities and Derivatives Free trading through Phone (Dial-n-Trade) Two dedicated numbers for placing your orders with your cellphone or landline. Automtic funds tranfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication Get the trusted, professional advice of our telebrokers Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares IPO investments Instant order and trade confirmations by e-mail Single screen interface for cash and derivatives

81

India bulls
Indiabulls is Indias leading Financial Services and Real Estate Company having presence over 414 locations in more than 124 cities. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange. Document Required to open Equity Trading Account with Indiabulls: One passport size photograph. Proof of bank account Copy of PAN card. Identity proof - copy of passport or PAN card or voter ID or driving license or ration card. Brokerage and fees : Account opening fees : Rs 1250/- (One time non-refundable) as below: 250/- Equity Trading Account opening charge 200/- Demat Account opening charge 750/- Software changes Advantages of Indiabulls Equity Trading Account : Brokerage is less compare to other online trading companies. Provide trading terminal powerbulls, a java based software. Its very fast in terms of speed and execution. Power Indiabulls trading terminal is the most advanced new generation trading platform with great speed. Disadvantages of Indiabulls Equity Trading Account Need a HDFC account for instant transfer. Cannot Apply IPO.

5 paisa.com
5paisa is Online Stock Trading Company of India Infoline Securities Private Ltd., Owner of popular business portal Indiainfoline.com. Besides high quality investment advice from an

experienced research team, the site offers real time stock quotes, market news and multiple tools for technical analysis. Trading is available in BSE and NSE.

Trading Terminals Available Investor Terminal (IT) Investor Terminal is 5Paisas equity trading terminal for low volume trader. This is web based terminal and could access from anywhere. This product provides limited features in comparison of Trader Terminal, which is another product provided by 5Paisa. Trader Terminal (TT) Trader Terminal is for high volume equity traders. Trader Terminal provides high volume trading with powerful interface and fast order execution.

Advantages of 5paisa Trading Terminals Very fast execution speed. Disadvantages of 5paisa Trading Terminals No intra-day tick by tick charts in Investor Terminal (IT). Learning 5paisa Trading Terminal is little hard.

Motilal oswal
Motilal Oswal Securities Ltd. (MOSt) is one of the best broking houses in India. Founded in 1987, 83

MOSt has in 200 cities through 400 outlets. MOSt provide advice-based broking (equities and derivatives), portfolio management services (PMS), e-Broking, depository services, commodities trading, IPO and mutual fund investment advisory services.

Equity Research is an inherent strength of MOSt. We believe in picking investment opportunities where the underlying value is higher than the market price. Our trading ideas are based on technical, news flow and events where risk reward ratio is favorable.

Features: Following are the features of MOSt E-Broking account: Easy single screen trader with instant trade confirmation similar to exchange based trading terminals. Access to various online reports like margin report, Demat A/c details, trades executed, turnover report, net position report with mark to market profit/loss and realized profit. Online transfer funds through HDFC Bank.

HDFC Securities
HDFC Securities (HDFCsec) is Equity Trading Company of HDFC Bank. HDFC Securities

provide both online trading and trading on phone. The HDFC Securities trading account has a unique 3-in-1 feature that integrates your HDFC Securities trading account with your existing HDFC bank savings account and existing Demat account. Funds / shares are seamlessly moved from the linked Demat/Bank account to execute the transactions. HDFCsec provides Cash-n-Carry

on both NSE and BSE, Day trading on both NSE and BSE, Trade on Futures & Options on the NSE and Online IPO Investment

Benefits:
Avail Demat & Online Trading Facility 3 Free Transactions on SBI/Andhra Bank ATMs per month Free Passbook facility available at home branch for account holders Free Email Statements

Features: Seamless Transactions - By integrating your accounts, we ensure minimal waste of time during movement of your funds and shares. Speed - Orders are placed electronically, so proceeds are available instantly. Dedicated and Separate contact numbers - for trading over the phone as well as for customer care. Brokerage and fees : Rs. 799/- (Including trading account, bank account and DP account with HDFC)

Note: HDFC Bank savings account required a quarterly minimum balance of Rs. 2,500/-. If you already have Saving account or DP account with HDFC, you could link them with trading account.

LIMITATIONS
1. Cold Calling: a. Voice and accent plays a major role. 85

b. The right time to call a customer can not be decided, as the customer may in a different mood a t the time of calling. c. Time consuming d. Less success rate

2 . Canopy:
a. A person who is investing expects a financial advisor with sound knowledge about the product but a person sitting at canopy is often mis-interpreted as a ordinary sales person. b. Canopy doesnt provide the right ambience to talk about critical decision like investment.

3. Corporate
a. Time consuming b. Contacts with higher authorities play a major role

CONCLUSION
Reliance Money is the most cost-effective, convenient and secure way to transact in a wide range of financial products and services. It offers a common platform for investors to invest in all equity products, commodities, forex, IPOs, insurance and other financial products. Reliance Money, the brokerage and distribution arm of Reliance ADA Group, aims to top investors in the smaller towns and cities through a flat fee structure. Reliance Moneys brokerage rates are quite competitive. Reliance Money offers most competitive brokerage rates - 0.05% for delivery trades and 0.005% for non-delivery trades (fixed fee of Rs. 500/- for delivery trades upto Rs. 10 lacs and or non-delivery trades upto Rs. 1 crore). Whereas, industry rates vary between 0.4% to 0.85% for delivery trades and between 0.05% and 0.10% for non delivery trades. Pre-paid cards of various denominations is to help investors with varying risk appetites. If one 87

buys a Rs 500 card, he can carry out delivery trades up to Rs 10 lakh and/or non-delivery trades up to Rs 1 crore. Currently, the company is in the process of finalising the franchises. It will have a presence even in remote areas like Ambejogai, a taluka in Maharashtra, Moth in Zanshi, UP and Badnagar in Ujjain, MP. There will be several franchises in each location. For instance, it plans to have about 60-70 franchises across Mumbai. The company plans to reach even the most remote taluka and tie up with sub-brokers. Service of Reliance Money are offered across 700 cities through 3000 outlets. Reliance Money all set to start a price war between the brokerage firms. It was Kotak, who just 3 months back or so started this paisa brokerage trading, is now catching up with every Firm. In fact, the big plan is to grow the share market five times that of BSE volumes in the next few years, a top official of Reliance Money said Huge investments taking place:

SWOT ANALYSIS OF RELIANCE MONEY

Strengths:
Price competitiveness ( Eg: No brokerage is charged, Annual maintenance charges are least) Reliance Money is able to respond very quickly as we have no red tape, no need for higher management approval, etc. Reliance Money is able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers Their lead consultant has strong reputation within the market They change direction quickly if our approach isnt working Management philosophy and commitment to maximize shareholders returns of Reliance Money. Ongoing activities of the company to support up gradation of operational performance and rise in productivity. Team of talented and committed professionals available to improve companies performance.

Weaknesses:
New entrant in the market which is dominated by big brand names like ICICI, India Bulls etc. Company has a small staff with a shallow skills base in many areas

Opportunities:
The share trading sector is expanding, with many future opportunities for success The competitors may be slow to adopt new technologies

Threats:
Developments in technology, will change the share market beyond the ability to adapt. A small change in focus of a large competitor is a threat for the market position. Constant pressure to be cost competitive to meet customer expectations. Relentless pressure to maintain profitability due to rising input/raw material prices.

89

Based on the above SWOT analysis and study of the available data I have come to the following conclusions: 1. All though relatively new entrants in the market, Reliance is slowly but surely gaining a strong hold because it is finally able to grasp the investment climate in Delhi. Secondly the branch managers at all the branches are very knowledgeable with a lot of experience in the financial markets so under their leadership can definitely expand its base. 2. The entire workforce consists of mostly youngsters, which means they can be encouraged and motivated to do good work because they have a long way to go and most of them are eager to climb the ladder. 3. Right now Reliance is at its nascent stage and will surely grab the major market under its belt very soon like in other fields. 4. In the past few years there has been a tremendous inflow of funds in the Indian market which has lead to the sky rocketing SENSEX. In fact there has been a tremendous response from the investors not only in shares but mutual funds as well. The Rs 5700Cr infused in the market through the Reliance Equity mutual Funds is an example of the growing trust of investors who earlier shied from such investments due to stock market fiascos like the Harshad Mehta scam or the US64 disaster in which investors lost huge amounts of money as well as their trust in financial instruments. The Stock Market has been very buoyant until now especially in the past 3 years. This particular trend is very favorable because a soaring SENSEX means higher returns, which encourages the investors to invest their money in the market. Although in the past 3 months the market has shown very unpredictable trend and has already lost over 1000 points. So in order to make the best the only thing required is to recruit more field staff who should be trained in a proper way to get better results. Thus, for this, their officials are focusing on Whenever its a question of Your Money The Answer is Reliance Money

Based on the findings of our project we would like to suggest the following:

After sales services and follow up calls are important for getting new references so trained Tele callers should be appointed for this purpose whose sole work should be to make feedback calls.

Reliance is having too many financial products right from Demat account to General Insurance and not all the salespeople are affluent in each and every product so the work force should be segregated each group dealing in a specific product and the sales target should be given likewise.

While interacting with the investors I found that most of the customers are unaware about the Mutual fund. Some of the people look upon mutual funds and equity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market

Reliance should declare in black ink that they will charge just 1 paisa per transaction. People tend to think that there must be some hidden charges.

Reliance should provide periodic training for updating the product knowledge of various financial advisors.

Company should provide regular rewards and recognition to employees and the field persons to boost there motivation.

Freedom is something Spiritual, whosoever has once had it, can never loose it. We feel we are lucky enough to do our summer internship in a company like, Reliance Money. In this Present Scenario, nothing is perfect, everything has some pros and cons. So the pros and cons of Reliance 91

Money that we want to highlight are as follows: 1. Reliance Money has a Flat Fee Structure that binds the customer to a minimum investment requirement whereas with the Pay-per-Use Model, Customer is free to invest his money on his own consent. 2. Reliance Money has a trading coupon for Rs. (up to) 5,00,000 and then the next coupon is for Rs. (up to) 1,00,00,000. This is sometimes not suitable for middle Investors. 3. Reliance Money does not provide Credit Cards to the fresher i.e. for owning the Credit Cards offered by Reliance Money, a person must have Credit card of any other company. 4. Although the services provided by Reliance Money are Customer satisfactory, yet they are not able to generate loyalty in their customers. This is because of lack of Follow ups made by the employees. Thus they are required to pay more attention towards the After Sale Services, given to customers. 5. More Branches are required to cover up the entire Target Market and the wide Customer Base.

QUESTIONNAIRE
Question 1: Do you have a Demat Account? Answer: 1. Yes 2. No

Question 2: Where do you have Demat Account? Answer: 1.India Bulls 3. India Infoline 2. Religare 4. With Some Bank 93

Question 3 : In which company do you Invest ? Answer : 1. Small Cap 2. Mid Cap 3. Large Cap

Question 4: On what basis you invest in stock market? Answer : 1. Online Market Research 2. Friends Suggestion 3. Help from Broker Question 5 : Reasons for having Demat account company you mentioned above ? Answer : 1. Less Brokerage 2. Better Service 3. Brand Name.

Question 6 : What is the level of satisfaction with the services provided by your broker ? Answer : 1. Highly-Satisfied 2. Staisfied 3. Neutral 4. Not-Satisfied

Question 7: What are the reasons for Dis-Satisfaction? Answer : 1. Lack of Transparency 3. Communication Problem. Question 8: What are your major expectations from a Brokerage firm ? Answer : 1. Proper Information 3. Convenience in dealing. Question 9 : Would you like to open a new Demat A/c if you are provided with what all you want ? Answer : 1. Yes 2. No 2. Low Cost 2. High Brokerage

Question 10 : Did you heard about Reliance Money and its Brokerage ? Answer : 1. Yes 2. No

Question 11 : What are your views about Reliance Money ? Answer : Reliance is a well known Business Eternity. Reliance is known for theur work. I Broking House that charges least brokerage. Also their annul maintainance charges is only Rs 50 /-. I am planning to close my other demat Accounts and I will open a new demat account in Reliance Money. I have also suggested my friends and they all were also amazed to know this. They are also planning to open a demat a/c in Reliance Money. have

gone through Reliance Monet Prospectus and at the end I found that Reliance Money is the only

www.mutualfundsindia.com www.icicidirect.com www.hdfc.com www.google.com www.moneycontrol.com www.valueresearchonline.com www.nseindia.com www.bseindia.com www.reliance money .com

Books:
Agarwal, J.D. "Security Analysis & Portfolio Management: A Review, Finance India, Vol. II No. 1, March 1989. Douglas A. Hayes and W. Scott Bauman "Investments: Analysis and Management" III Ed., 1976, MacMillan 95

 Malhotra, Naresh "Marketing Research and Applied Orientation" IV Ed., 2005, Pearson.