153150071-Reliance

INTRODUCTION

INTRODUCTION

Customer satisfaction is a measure of how products and services supplied by a company can meet the customers expectations. Customer satisfaction is still one of the single strongest predictors of customer retention. Its considerably more expensive to attract new customers than it is to keep old ones happy. In a climate of decreasing brand loyalties, understanding customer service and measuring customer satisfaction are very crucial. There is obviously a strong link between customer satisfaction and customer retention. Customer's perception of Service and Quality of product will determine the success of the product or service in the market .With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. Customer expectations are the customer-defined attributes of your product or service you must meet or exceed to achieve customer satisfaction. There are many reasons why customer expectations are likely to change over time. Process improvements, advent of new technology, changes in customer's priorities, improved quality of service provided by competitors are just a few examples. Mutual funds are always considered as a investment benefits in customer eye. In today era financial products are seems to be so enough productive and safer also. There are so many types of safer investments are available in markets nowadays. So I believe there are some bright prospects for financial products in coming terms. Globally it is highly recognized as better return based investments.

INTRODUCTION TO RELIANCE SECURITIES LIMITED

Reliance Securities Limited is a Reliance Capital company and part of the Reliance Group.

Reliance Securities endeavors to change the way investors transact in equities markets and avails services. It provides customers with access to Equity, Derivatives, Portfolio Management Services*, Investment Banking*, Mutual Funds & IPOs. It also offers secured online share trading platform and investment activities in secure, cost effective and convenient manner. To enable wider participation, it also provides the convenience of trading offline through variety of means, including Call & Trade, Branch dealing Desk and its network of affiliates.

RelianceSecurities has a pan India presence atmore than 1,700 locations.

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 groups, in terms of net worth.

Awards & Achievements Reliance Securities has been rated no. 1 by Starcom Worldwide for online security and cost effectiveness in 2007

'Debutant Franchisor of the Year' at the 5th International Franchisee & Retail show 2007

'Best in category Service Franchise' at the 6th International Franchise & Retail show 2008

'Best E-Brokerage Houser 2008' (runner's up) by Outlook Money NDTV Profit Awards

'Largest E-Broking House & Best Equity Broking House for the year 2009' by Dun & Bradstreet

'Largest E-Broking House 2010' by Dun & Bradstreet

'My FM Stars of the Industry 2011' for excellence in Online Demat

Reliance Securities Limited is now ISO 9001:2008 certified for Online Trading Platform

'Brand Leadership Legacy Award' at the Asian Leadership Awards -Dubai, 2011

COMPANY PROFILEReliance Money

Reliance Money is a group company ofReliance Capital, one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sectorfinancial services and banking companies, in terms of net worth. Reliance Capital is a part ofthe Reliance Anil Dhirubhai Ambani Group.

Reliance Money is a comprehensive electronic transaction platform offering a wide range ofasset classes. Its Endeavour is to change the way India transacts in financial markets and avails financial services.

Reliance Money is a single window, enabling you to access, amongst others in Equities, Equity & Commodities Derivatives, Mutual Funds, IPOs, Life & General Insurance products, Offshore Investments, Money Transfer, Money Changing and Credit Cards

Reliance Capital

Reliance Capital Ltd (RCL) is a registered as a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996.RCL has sponsored the Reliance Mutual Fund within the framework of the Securities and Exchange Board of India (Mutual Fund) regulations, 1996.

RCL primarily focuses on funding projects in the infrastructure sectors and supports the growth of its subsidiary companies, Reliance Capital Asset Management Limited, Reliance Capital Trustee Co. Limited, Reliance General Insurance Company Limited and Reliance Life Insurance Company Limited.

As of March 31, 2005, the companys investment in infrastructure projects stood at Rs. 1071Crores. The investment portfolio of RCL is structured in a way that realizes the highest post-tax.

Dhirubhai Ambani Group, and is ranked among the 15 most valuable private companies in India. 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 groups, 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, depository services, distribution of financial products, consumer finance and other activities in financial services.

The Reliance Anil Dhirubhai Ambani Group is one of India's top 3 business houses, and has a market capitalization of over Rs.2,90,000 crore (US$ 75 billion),net worth in excess ofRs.40,000 crore (US$ 10 billion), cash flows of Rs. 9,000 crore (US$ 2.2 billion), net profit of Rs. 5,000 crore (US$ 1.3 billion) and zero net debt.

Chairman's Profile

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil Dhirubhai Ambani is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural Resources and Reliance Power. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest private sector enterprise.Anil Dhirubhai Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company's management over the next 22 years.

BUSINESS OVERVIEWReliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, consumer finance and other activities in financial services. Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance is India's fastest growing life insurance company and among the top 4 private sector insurers. Reliance General Insurance is India's fastest growing general insurance company and the top 3 private sector insurers. Reliance Money is the largest brokerage and distributor of financial products in India with more than 2.5 million customers and the largest distribution network. Reliance Consumer finance has a loan book of over Rs. 8,000 crores at the end of June 2008.

Reliance Capital has a net worth of Rs.6,862 crores (US$ 1.6 billion) and total assets of Rs.19,940 crores (US$ 4.6 billion) as of June 30, 2008 and over 26,000 employees.

Money has increased its market share among private financial companies to nearly Convenient & effective Anytime & anywhere financial transaction capability. Launched in

FINANCIAL PRODUCTS:

Financial products are of following types:-

1. Mutual Funds

2. Equity and Commodity Derivatives

3. Life and General Insurance Products

4. Portfolio Management Service (PMS)

5. Offshore Investments

6. Money Transfer

7. Money Changing

8. Credit Cards

DESCRIPTION OF FINANCIAL PRODUCTS

MUTUAL FUND INDUSTRY

The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year1987 when non-UTI players entered the industry in the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets under Management (AUM) were Rs. 67bn. The private sector entry to the fund family raised the AUM to Rs. 470bn in March 1993 and till April 2004; it reached the height of 1,540 b n. Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking industry. The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling. The mutual fund industry can be broadly put into fourphases according to the development of the sector. Each phase is briefly described as under.

Reliance Life Insurance

Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group is India's fastest growing life insurance company and among the top 4 private sector life insurers. Reliance Life Insurance has a pan India presence and a range of products catering to individual as well as corporate needs. Reliance Life Insurance has over 700 branches and 1, 80,000 agents. It offers 26 products covering savings, protection & investment requirements. Reliance Life Insurance will endeavor to attain a leadership position in the market over the next few years, by further expanding and strengthening its distribution network and offering a diverse array of products to suit the varied and specific needs of individual customers.

Term Insurance Policy

Aterm insurance policyis a pure risk cover policy that protects the person insured for a specific period of time. In such type of a life insurance policy, a fixed sum of money called the sum assured is paid to the beneficiaries (family) if the policyholder expires within the policy term. For instance, if a person buys a Rs 2 lakh policy for 15 years, his family is entitled to the sum of Rs 2 lakh if he dies within that 15-year period.

If the policy holder survives the 15-year period, the premiums paid are not returned back. The advantage, apart from the financial security for an individuals family is that the premiums paid are exempt from tax.

These insurance policies are designed to provide 100 per cent risk cover and hence they do not have any additional charges other than the basic ones. This makes premiums paid under such life insurance policies the lowest in the life insurance category.

Whole Life Policy

Awhole life policycovers a policyholder against death, throughout his life term. The advantage that an individual gets when he / she opts for a whole life policy is that the validity of this life insurance policy is not defined and hence the individual enjoys the life cover throughout his or her life.

Under this life insurance policy, the policyholder pays regular premiums until his death, upon which the corpus is paid to the family. The policy does not expire till the time any unfortunate event occurs with the individual.

Increasingly, whole life policies are being combined with other insurance products to address a variety of needs such as retirement planning, etc.

Premiums paid under the whole life policies are tax exempt.

Endowment Policy Combining risk cover with financial savings, endowment policies are among the popular life insurance policies.

Policy holders benefit in two ways from a pure endowment insurance policy. In case of death during the tenure, the beneficiary gets the sum assured. If the individual survives the policy tenure, he gets back the premiums paid with other investment returns and benefits like bonuses.

In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans.

The concept of providing the customers with better returns has been gaining importance in recent times. Hence, insurance companies have been coming out with new and better ULIP versions of endowment policies. Under such life insurance policies the customers are also provided with an option of investing their premiums into the markets, depending on their risk appetite, using various fund options provided by the insurer, these life insurance policies help the customer profit from rising markets.

The premiums paid and the returns accumulated through pure endowment policies and their ULIP variants are tax exempt.

Money Back Policy This life insurance policy is favoured by many people because it gives periodic payments during the term of policy. In other words, a portion of the sum assured is paid out at regular intervals. If the policy holder survives the term, he gets the balance sum assured.

In case of death during the policy term, the beneficiary gets the full sum assured.

New ULIP versions of money back policies are also being offered by various life insurers.

The premiums paid and the returns accumulated though amoney back policyor its ULIP variants are tax exempt.

ULIPs ULIPs are market-linked life insurance products that provide a combination of life cover and wealth creation options.

A part of the amount that people invest in a ULIP goes toward providing life cover, while the rest is invested in the equity and debt instruments for maximising returns. .

ULIPs provide the flexibility of choosing from a variety of fund options depending on the customers risk appetite. One can opt from aggressive funds (invested largely in the equity market with the objective of high capital appreciation) to conservative funds (invested in debt markets, cash, bank deposits and other instruments, with the aim of preserving capital while providing steady returns).

ULIPs can be useful for achieving various long-term financial goals such as planning for retirement, childs education, marriage etc.

Annuities and Pension

In these types of life insurance policies, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect against financial risks as well as provide money in the form of pension at regular intervals.

DEMAT ACCOUNT

The term "demat", in India, refers to a dematerialised account for individual Indian citizens to trade in listed stocks or debentures in electronic form rather than paper, as required for investors by the Securities and Exchange Board of India (SEBI). In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Access to the demat account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed.

Hence, Demat refers to a dematerialised account. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 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 adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.Portfolio ManagementA Portfolio Management refers to the science of analyzing the strengths, weaknesses, opportunities and threats for performing wide range of activities related to the ones portfolio for maximizing the return at a given risk. It helps in making selection of Debt Vs Equity, Growth Vs Safety, and various other tradeoffs.

Major tasks involved with Portfolio Management are as follows.

Taking decisions about investment mix and policy

Matching investments to objectives

Asset allocation for individuals and institution

Balancing risk against performance

There are basically two types of portfolio management in case of mutual and exchange-traded funds including passive and active.

Passive management involves tracking of the market index or index investing.

Active management involves active management of a funds portfolio by manager or team of managers who take research based investment decisions and decisions on individual holdings.

Portfolio:In terms of mutual fund industry, a portfolio is built by buying additional bonds, mutual funds, stocks, or other investments. If a person owns more than one security, he has an investment portfolio. The main target of the portfolio owner is to increase value of portfolio by selecting investments that yield good returns.

As per the modern portfolio theory, a diversified portfolio that includes different types or classes of securities; reduces the investment risk. It is because any one of the security may yield strong returns in any economic climate.

Facts about Portfolio

There are many investment vehicles in a portfolio.

Building a portfolio involves making wide range of decisions regarding buying or selling of stocks, bonds, or other financial instruments. Also, one needs to make decision regarding the quantity and timing of the buy and sell.

Portfolio Management is goal-driven and target oriented.

There are inherent risks involved in the managing a portfolio.

The basics and ideas of Investment Portfolio Management are also applied to portfolio management in other industry sectors.

Application Portfolio Management: It involves management of complete group or subset of software applications in a portfolio. These applications are considered as investments as they involve development (or acquisition) costs and maintenance costs.

The decisions regarding making investments in modifying the existing application or purchasing

new software applications make up an important part of application portfolio management.

Product Portfolio Management:The product portfolio management involves grouping of major products that are developed and sold by businesses into (logical) portfolios. These products are organized according to major line-of-business or business segment.

The management team actively manages the product portfolios by taking decisions regarding the development of new products, modifying existing products or discontinue any other products. The addition of new products helps in diversifying the investments and investment risks.

Project Portfolio Management:It is also referred as an initiative portfolio management where initiative portfolio involves a defined beginning and end; precise and limited collection of desired results or work products; and management team for executing the initiative and utilising the resources. A number of initiatives that supports a product, product line or business segment, are grouped into a portfolio by managers.

OFFSHORE INVESTMENTS

Offshore InvestingOffshore investing refers to a wide range of investment strategies that capitalize on advantages offered outside of an investor's home country. We will briefly touch on the advantages and disadvantages of offshore investing. The particulars are far beyond the scope of this introductory article.

There is no shortage ofmoney-market, bond and equity assets offered by reputable offshore companies that are fiscally sound, time-tested and, most importantly, legal.

AdvantagesThere are several reasons why people invest offshore:

Tax Reduction- Many countries (known astax havens) offer tax incentives to foreign investors. The favorable tax rates in an offshore country are designed to promote a healthy investment environment that attracts outside wealth. For a tiny country with very few resources and a small population, attracting investors can dramatically increase economic activity. Simply put, offshore investment occurs when offshore investors form acorporationin a foreign country. The corporation acts as a shell for the investors' accounts, shielding them from the higher tax burden that would be incurred in their home country. Because the corporation does not engage in local operations, little or no tax is imposed on the offshore corporation. Many foreign companies also enjoy tax-exempt status when they invest in U.S. markets. As such, making investments through foreign corporations can hold a distinct advantage over making investments as an individual.

In recent years, however, the U.S. government has become increasingly aware of the tax revenue lost to offshore investing, and has created more defined and restrictive laws that close tax loopholes. Investment revenue earned through offshore investment is now a focus of regulators and the tax man alike. According to the U.S. Internal Revenue Service (IRS), U.S. citizens and residents are now taxed on theirworldwideincome. As a result, investors who use offshore entities to evade U.S. federal income tax on capital gains can be prosecuted fortax evasion. Therefore, although the lower corporate expenses of offshore companies can translate into better gains for investors, the IRS maintains that U.S. taxpayers are not to be allowed to evade taxes by shifting their individual tax liability to some foreign entity.

Asset Protection- Offshore centers are popular locations for restructuring ownership of assets. Through trusts, foundations or through an existing corporation individual wealth ownership can be transferred from people to other legal entities. Many individuals who are concerned about lawsuits, or lenders foreclosing on outstanding debts elect to transfer a portion of their assets from their personal estates to an entity that holds it outside of their home country. By making these on-paper ownership transfers, individuals are no longer susceptible to seizure or other domestic troubles. If thetrustoris a U.S. resident, their trustor status allows them to make contributions to their offshore trust free ofincome tax. However, the trustor of an offshore asset-protection fund will still be taxed on the trust's income (the revenue made from investments under the trust entity), even if that income has not been distributed.

Confidentiality- Many offshore jurisdictions offer the complimentary benefit of secrecy legislation. These countries have enacted laws establishing strict corporate and banking confidentiality. If this confidentiality is breached, there are serious consequences for the offending party. An example of a breach of banking confidentiality is divulging customer identities; disclosingshareholdersis a breach of corporate confidentiality in some jurisdictions. However, this secrecy doesn't mean that offshore investors are criminals with something to hide. It's also important to note that offshore laws will allow identity disclosure in clear instances of drug trafficking, money laundering or other illegal activities. From the point of view of a high-profile investor, however, keeping information, such as the investor's identity, secret while accumulating shares of a public company can offer that investor a significant financial (and legal) advantage. High-profile investors don't like the public at large knowing what stocks they're investing in. Multi-millionaire investors don't want a bunch of little fish buying the same stocks that they have targeted for large volume share purchases - the little guys run up the prices.

Because nations are not required to accept the laws of a foreign government, offshore jurisdictions are, in most cases, immune to the laws that may apply where the investor resides. U.S. courts can assert jurisdiction over any assets that are locatedwithinU.S. borders. Therefore, it is prudent to be sure that the assets an investor is attempting to protect not be held physically in the United States.

Diversificationof Investment- In some countries, regulations restrict the international investment opportunities of citizens. Many investors feel that such restriction hinders the establishment of a trulydiversifiedinvestmentportfolio. Offshore accounts are much more flexible, giving investors unlimited access to international markets and to all major exchanges. On top of that, there are many opportunities in developing nations, especially in those that are beginning toprivatizesectors that were formerly under government control. China's willingness to privatize some industries has investors drooling over the world's largest consumer market.

DisadvantagesTax Laws are Tightening- Tax agencies like theIRSaren't ignorant of offshore strategies. They've clamped down on some traditional ways of tax avoidance. There are stillloopholes, but most are shrinking more and more every year. In 2004, the IRS amended the Internal Revenue Code (IRC) and began to collect taxes from both American corporations that operate out of another country and American citizens and residents who earn money through offshore investments. (For more information on tax laws that affect offshore investors, see the IRS' "International Taxpayer - Expatriation Tax".)

Cost- Offshore Accounts are not cheap to set up. Depending on the individual's investment goals and the jurisdiction he or she chooses, an offshore corporation may need to be started. Setting up an offshore corporation may mean steep legal fees, corporate or account registration fees and in some cases investors are even required to own property (a residence) in the country in which they have an offshore account or operate aholding company. Furthermore many offshore accounts require minimum investments of between $100,000 and $1 million. Businesses that make money facilitating offshore investment know that their offerings are in high demand by the very wealthy and they charge accordingly.

How Safe Is Offshore Investing

Popular offshore countries such as the Bahamas,Bermuda, Cayman Islands and Isle of Man are known to offer fairly secure investment opportunities. More than half of the world's assets and investments are held in offshore jurisdictions and many well-recognized companies have investment opportunities in offshore locales. Still, like every investment you make, use common sense and choose a reputable investment firm. It is also a good idea to consult with an experienced and reputableinvestment advisor, accountant, and lawyer who specializes in international investment. If you are looking to protect your assets, or are concerned withestate planningor business succession, it would be prudent to find an attorney (or a team of attorneys) specializing in asset protection, wills or business succession. Of course, these professionals come at a cost. In most cases the benefits of offshore investing are outweighed by the tremendous costs of professional fees, commissions, travel expenses and downside risk.

Credit card

Reliance - Anil Dhirubhai Ambani Group today announced the launch of the first ever Reliance Credit Card in association with Citibank.

Reliance Credit Cards are available in two categories -SilverandGold. The Reliance Credit Cards will be available across the country, initially in Mumbai and Delhi, followed by other metros like Hyderabad, Chennai, Kolkata, Pune and Bangalore, and thereafter in all major cities and towns nationwide.

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.

Points earned can be redeemed inter alia across various Reliance - ADA Group products and services such as recharge of prepaid connections, payment of mobile phone bills, electricity bills, life and general insurance premia, and availing services at thousands of Reliance World and Reliance Communications retail outlets, as well as at Adlabs multiplexes

Reliance Credit Cards will also offer complimentary vouchers on joining, including inter alia 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.

In addition, 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.

The card is being launched as a co-branded card with Citibank in association with Visa International.

The launch of Reliance Credit Card marks another milestone in Citibank's continuing endeavour to offer unique value propositions to our customers by developing products and solutions that best address their much felt needs. The Reliance Card further strengthens the relationship between two industry leaders. Both partners have a history of setting benchmarks in product innovation and customer service said T R Ramachandran, Business Head, Credit Cards, Citibank.

We believe that the programme will set a benchmark for the industry as a whole. We at Citibank are delighted to leverage our strengths as a leading card issuer to partner Reliance in this first-of its kind programme, he added.

REVIEW OF LITERATURE

Sunayna khurana (2008) analyzed the customer preference in life insurance industry in India. She had analyzed the customer preference regarding plans and company, theirpurpose of buying insurance policies, satisfaction level and their future plans for the new insurance policy.

Mr. K B S Kumar edited the book Insurance customer service of ICFAI Universitypress; it includes the chapters like Tracking customer satisfaction by MrTommoormam. U Jawaharlal and Nikhil Pareek analyzed the customer service in Life Insurance In Insurance Chronical (April 2004) he had analyzed the different services of Life Insurance players in India. Narayan Krishnamurthy in Outlook money (Sep 15, 2003) article analyzed the situational need of Insurance at different situations and steps of life in his article.

Navasiyam et al. (2006) analyzed the socioeconomic factors that are responsible fortaking life insurance policies and examined the preferences of the policyholders towards various types of policies of LIC. From the analysis, it was found that factors such as age, educational level and sex of the policyholders are insignificant. However, income level, occupation and family size are significant while deciding on an insurance policy. From the analysis, it is inferred that respondents belonging to the age group of 31 to 40 years are much interested in taking a life insurance policy.

MFs have attracted a lot of attention and kindled the interest of both academic andpractitioner communities. Compared to the developed markets, very few studies on MFsare done in India. This literature review reveals investor behavior studies. The researches on mutual funds has been extremely skewed in terms of geographical coverage, most focused to developed countries like Us. Tamal Datta chaudhuri, Jayanta Kumar seal, edited the book named Mutual Funds Industry it includes empirical study made by Navdeep agrwal and Mohit Gupta titled Performance of mutual fund in India: an empirical study.

Mary Rowland written The New Common sense Guide to mutual funds it includes the guidelines while investing in mutual fund. How should one invest in mutual fund and when what step should be taken in a situation by a investor. Gupta LC (1993) conducted a household investor survey with the objective to provide data on investor preferences on MFs and other financial asset.

Variety of financial products like mutual funds, insurance, shares, debentures, derivative instruments, etc are available in India. However, the reach of these products is very limited and the features of many of these products are very basic in nature. Further development and innovation in these products would be faster if they are accessed by all classes of investors in urban as well as rural areas. The thrust lies mainly on the distribution of financial products to deepen the market for such products and improvements in the product design itself. The responsibility of ensuring these improvements vests with all the stakeholders in the financial services industry.

In order to tap the rural and the semi-urban markets for distributing financial products certain steps have to be taken by both, the players and the regulators.

1. Creating awareness about different financial products

Regulators like RBI and IRDA have taken steps to promote financial literacy but further efforts are required from both the regulators and players in the financial industry to increase awareness among the rural investors. Financial education for the rural investors should focus on their financial needs and the products catering to such needs. For example, the population involved in agricultural activities should be educated about insurance of agricultural implements, crop insurance, etc. This would not only increase the depth of the market for the financial products but also facilitate the financial inclusion in India.

2. Customize/repackage the financial products

The marketing/promotion approach to be taken for rural population should be different as compared to their urban counterparts. This is due to the major differences in perception of financial products of the rural population. For example, rural households prefer saving-oriented life insurance policies which could fulfill their long term goals like the costs of a daughters marriage as opposed to their urban counterparts for whom tax consideration is a major influential factor for purchasing a life insurance policy. Thus there is need to understand the perception of the rural households and design innovative products to cater to their

needs.

3. Explore new distribution channels

Financial service providers should explore new distribution channels or tie up with intermediaries like the MFIs or other social groups. They can bank on the network and established operations of these institutions as against opening up of new branches that involve higher infrastructure costs, staff expenses, etc. The development of the MFI model in India would be critical for the distribution of financial products.

4. Credit bureaus

Risk assessment of the households in the semi-urban and rural areas is one of the major hurdles for companies offering financial products in the rural areas. Credit bureaus or credit information companies could be instrumental in filling this information gap and would help small investors to access various financial products at fair prices. This step would also boost the confidence of the players who are looking at the semi-urban and rural households as their potential customers.

5. Obligatory targets

Regulators in the financial market can impose targets on players in the industry to achieve certain level of penetration in the rural areas. For example, a mutual fund should be required to spend certain amount of its profits on generating financial literacy or investor education campaigns. This would boost the efforts on the part of the financial players to initiate financial education campaigns and develop or design products for the rural households.

6. Leveraging on technology

A well developed technological system in financial services companies could reduce cost of transactions and processing of applications. The companies distributing financial products by using MFI network in rural areas can control their own operations by leveraging on advanced technological devices like the smart card readers. OBJECTIVES

The following are the objectives of theSummer Internship:

1. To understand the different investment options provided by RELIANCE MONEY through its marketing schemes.

2. To know the investors expectations on Investment Products offered by RELIANCE MONEY LTD.

3. To know the various services provided by RELIANCE AMC to its investors.

4. To study the satisfaction levels of customers in RELIANCE MONEY.

5. To know the different aspects of capital market, in which one can invest and get beneficial returns on their investments.

LIMITATIONS

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

2. The study is confined to the existing customers of RELIANCE MONEY only.

3. The survey will be limited only to JALANDHAR.

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

RESEARCH METHODOLOGY

Research methodology typically involves a full breakdown of all the options that have been chosen by a company in order to investigate something. This would include the procedures and techniques used to perform the research; as well as any of the terminology and explanations of how these methods will be applied effectively.

The basic concept of research methodology refers to the way in which companies conduct their research and how they collect the data they need. Whenever a company or organisation needs to investigate a particular area of their business dealings, they need to adapt the most suitable research methodology for the job.

Primary source

Visiting the organization (Observation Techniques)

Using structured questionnaire for the existing customer.

Secondary Source

Company Broachers

Company Website

Internet

SCOPE OF STUDY

The scope of the study refers to the job that to know about the activities of the organization. The study means that the analysis of the products of the company on which he/she has to focus.

During the summer training the volunteer need to find out the corporate strategies of the running company and the mile stone which the company has covered during its journey. In the summer training, it is necessary for the student that he /she involve with the experience guys to get the knowledge about the company. That is how the company has got the success, Or if it is going in the loss, why.

In my training period I have found that the reliance group is the biggest group in Indian companies. I felt that I can learn the more in the Reliance Life Insurance Limited.

Reliance Life Insurance Limited is the part of the Reliance Capital Limited which is a growing company in the financial products.

Reliance Anil Dhirubhai Ambani group is also deals in communication, energy, natural resources, media, and entertainment, healthcare and infrastructure

PURPOSE OF THE STUDYThe main purpose of the study is to know the expectations of those investors who invested in RELIANCE MONEY and the satisfaction levels of investors with the services provided by the RELIANCE Asset Management Company Jalandhar. In the present competitive environment it is very crucial to every business firm to ensure satisfaction to its customers. According to one survey it was found that it costs five times more to attract a new customer than to retain an existing customer. So with all theseparameters taking into consideration one can say that it is very important to provide good sand services that satisfy customers needs or wants irrespective of the industry or scale of thebusiness in which a firm is operating .Here the main purpose of the survey is to know the various factors that are very important in satisfying the customers needs and to know how RELIANCE MONEY is ensuring its customers satisfaction. The expectations of customers are vary from one customer to the other customer. Forexample some customers are only concerned about the returns that they are getting in a fundbut at the same time there are some other customers who are very specific about the location, ambience and front line employees interaction and some other parameters. It is very difficult to any business firm to satisfy all the expectations of all customers but there are some common factors that are essential to fulfill. The objectives of the projects are given as below. The details of the survey such as the source of data, the sample size taken and the methods of analysis are all given briefly in the methodologies. There are some constraints throughout the project, which are given clearly in the limitations.

RESEARCH DESIGN

Research design can be defined as the plan and structure of enquiry formulated in order to obtain answers to research questions on business on business aspects. Research design can be understood as that which gives the blueprint for collection, measurement and analysis ofbusiness data. The research plan constitutes the overall program of the business researchprocess. The planning process includes the framework of the entire research process, starting from developing hypothesis to the final evaluation of collected data. Research design is essential because it facilitates the smooth flow of various research results can be obtained with minimum utilization of time, money and effort. Therefore it can be said that design is highly essential for planning research activities. If research design is notproperly prepared, it will jeopardize the whole research process and will not meet its purpose.

There are two main components in determining whom you will interview. The first is deciding what kind of people to interview. Researchers often call this group the target population. If you conduct an employee attitude survey or an association membership survey, the population is obvious.

The next thing to decide is how many people you need to interview. Statisticians know that a small, representative sample will reflect the group from which it is drawn. The larger the sample, the more precisely it reflects the target group. However, the rate of improvement in the precision decreases as your sample size increases.

Sampling technique

In order to obtain my sample I have used No-rule sampling technique. No rule sampling technique is the one in which we take a sample without any rule, being the sample representative if the population is homogeneous and we have no selection bias.

Research Strategy

With regards to the research approach a questionnaire was conducted for a quantitative collection of data and a focus group was constructed for a qualitative feel of the matter. A case study is excluded considering the fact that a case study focuses on individual instances rather than wider spectrums. An experiment and observation were also excluded because of lack of time and resources.

Defining population

As defined earlier the main objective of conducting this study is Marketing of financial products in Jalandhar district of Punjab. Sample size: sample size for the survey is 100.

It is not easy to conduct interview on such a huge population size. It demands lots of resources, efficiency, effectiveness and is really time consuming and costly. Hence, in order to resolve this issue. I have narrowed the scope of my research. The study group for this research is a group of 100.

Sampling procedure

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

Steps in Sampling Procedure

Defining the target population

Specifying the sampling frame

Specifying the sampling Unit

Selection of the sampling method

Determination of sample size

Specifying the sampling plan

DATA ANALYSIS & INTERPRETATION

TABLE SHOWING DIFFERENT AGE GROUP OF THE RESPONDENTS

TABLE-1

AGENO OF RESPONDENTS

0-180

18-3640

36-5450

54-7210

72 & ABOVE0

Inference: The majority of the respondents i.e. 46% are from the age group of 36-54.and the second largest age group is 18-36. And the remaining investors are from 54-72 age group.

PREFERRED FUND STRUCTURE

TABLE-2

STRUCTURE OF THE FUNDNO. OF INVESTORS PREFERRED

OPEN ENDED FUND64

CLOSE ENDED FUND24

INTERVAL FUNDS12

TOTAL100

Inference: It is observed that 64 out of 100 that are 64% investors are interested to invest their money in open ended funds the reason can be attributed to its convenience to enter and exit at any time.24% investors are interested to invest in close ended funds.

INVESTORS SCHEME PREFERENCE

Table-3

PREFERRED FUND SCHEMENO. OF INVESTORS PREFERRED

GROWTH SCHEME42

INCOME SCHEME16

BALANCED SCHEME32

OTHERS10

TOTAL100

Inference: In the above given graph it is showed that 52 out of 100 that are 52% of customers are interested to invest in growth schemes.8 out 25 that are 32% of customers are interested to invest in balanced schemes and remaining 16% customers are preferred to invest in income schemes.

INVESTORS FUND PREFERENCE

Table-4

TYPE OF FUNDNO OF INVESTORS PREFERRED

TAX SAVER FUNDS15

INDEX FUNDS40

SECTORIAL FUNDS45

TOTAL100

Inference: Out of 100 investors 15 that is 15% of customers are preferred to invest in tax saver funds.40 that is 40% of investors are preferred to invest in index funds which give return based upon respective indexes.45 that is 45 % of investors to invest in sectorial funds that means they are ready to take high risk but want high returns.

TABLE SHOWING REPEATION OF INVESTMENTS MADE BY RESPONDENTS

TABLE-5

RESPONSENO OF RESPONDENTS

YES64

NO36

TOTAL100

Inference: Out of 100 respondents 34 ranked RELIANCE as AMC one for customer service function.

RESPONDENTS RANKINGS ON THE CUSTOMER

SERVICE OF RELIANCE MUTUAL FUNDS

TABLE-6

RANKSNO OF RESPONDENTS

ONE34

TWO16

THREE26

FOUR16

FIVE8

CUSTOMER RATIO IN DIFFERENT FINANCIAL PRODUCTS

Table-7

The following data has been gathered from the various clients of RELIANCE SECURITY LIMITED

This figure says that most people go for at 1st EQUITY investment then for MUTUAL FUND, FIXED DEPOSITS AND INSURANCE. Because equity gives good return in short time as well as long term as compared to mutual fund.

GETTING MONTHLY / QUATERLY STATEMENTS

FROM TIME TO TIME

Table-8

Getting Monthly /quaterly statements from time to timeNo of Investors

Yes70

No30

Inference- 70 out 100 people getting quaterly statements from time to time 30 out 100 people not getting monthly/quaterly statements from time to time.

RESPONSE REGARDING AREAS FOR

IMPROVEMENT BY RELIANCE MUTUAL FUNDS

TABLE -9

AREASNO OF RESPONDENTS

CUSTOMER SERVICE35

MONITORING OF FIELD38

AGENTS TRAINING22

OTHERS5

TOTAL100

Inference- Out of 100 respondents 38 respondents want RELIANCE to improve at their fund monitoring function.

Table-10

REDEMPTION SATISFACTION OF THE CUSTOMERS

Satisfaction about redemption facilitiesNo of investors

Yes65

No35

Inference-Sixty five percent of the customers are happy with the redemption facilities of RMF.

FINDINGS

From the analysis we can say that if there is more risk there is more return and we can say that share market is totally dependent on the risk taken by the investors in investing in shares.

mutual funds there is less risk as the money of investors invested in different sectors so it can divide the risk in different portfolio adopted by mutual funds companies.

At last I can say that money invested in this rise and fall market it is better to invest in mutual funds for those investors who are risk adverse and for those who are risk taker it is better for them to invest in share market.

Referral services by affiliate service providers are very effective and a highly targeted market-oriented marketing strategy. It is necessary to have a system in place to respond to the queries of those potential clients who were referred and have follow-up services that can convert potential leads into actual customers.

RECOMMENDATIONS AND SUGGESTIONS

The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing

Direct mailing is another tactic that is relatively cheap and can be used to reach target markets of your choice. The job can be out-sourced, and your operating costs are well within the budget. It can also be effective in recruiting potential customers easily.

Cold calling is another marketing strategy, but it is not used much owing to the enormous drain on time and labor as well as costs and low rate of new customer recruitment.

Offering items having your brand identity serves to remind existing customers as well as those you deal with on a regular basis about your financial services as well as products. Post-it note pads, pens, coffee mugs, key chains, pen torches, etc., are items that are generally used as promotional items.

Using the media to effectively advertise your products. The TV, radio, newspaper, magazines, cinemas, etc., are very good sources for targeting your advertisements. Keep your advertisements short and make sure they tell people how they can benefit from using your services or products.

CONCLUSION

Marketing of financial products has to be carefully planned and executed in order to avoid mistakes that can be costly and hard to recover from. With heavy competition, financial institutions have to be aware of the current market trends and must keep informing their clients about their latest service or products to make sure that their clients use them.

If marketing of financial products or services are excellent, the firm is ensured of guaranteed, quality financial planning leads as well as better referral service from affiliates. It is necessary to have a sound, carefully planned marketing strategy in order to recruit more customers, generating more revenue. This calls for extensive market research and competitive analysis and knowing how to lure customers by sending out the right message in the advertisements. It is a pity that many people do not understand the importance of marketing of financial products and, therefore, misses many opportunities to develop and expand their client base.

With the globalize economy and immense competition among countries for faster development of their respective economies, the significance of Insurance, Mutual Funds and Foreign investment has taken manifold. With a buoyant vibrant and experienced stock market, India today is looking ahead to surpass China in terms of foreign Investment and growth prospects. Stock exchange being the barometer of the economy plays a vital role in showcasing growth of an economy and luring investment. While studying the role of Insurance, Mutual fund and FIIs in Stock Market, I discussed with a few persons who are into stock broking business. And the information they have provided shows that though the investment and participation of domestic investors are rising, still, they have not been able to prove themselves to be as influential as Insurance, mutual funds and FIIs.

Importance and the role of Insurance, Mutual funds and FIIs play in the Indian stock market can be seen from the fact that the recent surge in Sensex and NIFTY is attributed to the active participation of FIIs in the Stock Market. Despite being aware of the Asian economic crisis where FIIs role was of a major concern, the importance of foreign capital in the development of economy cannot be undermined in anyway.BIBLIOGRAPHYBy the Books Reference

Business Environment written By Francis CherunilamBy the Help of Manuals Reliance Money Report of 2009 & Internet.

By the help of Other Sources

By the heads and the consultant of the Reliance Money.

By the Websites Reference

http://www.rsec.co.in/market-and-news/mutual-funds/mutual-fund-news-details/declaration-of-dividend-under-hdfc-mf-fmp-375d-july-2011-(1)-/195340 http://www.google.co.in/ www.wikkipedia.com http://www.reliancemutual.com/Nav/LatestNAVs.aspx