A Project Report on “Sales and Distribution of Financial Product” From At Success Advisory Services Pvt. Ltd., Bokaro Submitted to MAEER’s MIT SCHOOL OF TELECOM AND MANAGEMENT STUDIES SUBMITTED BY MANOJ KUMAR SINGH ROLL NO.- L20711 BATCH NO.- LM2 IN PARTIAL FULLFILMENT OF POST GRADUATE PROGRAM(PGP) 1
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A Project Report on
“Sales and Distribution of Financial Product”
From
At
Success Advisory Services Pvt. Ltd., Bokaro
Submitted to
MAEER’s
MIT SCHOOL OF TELECOM AND MANAGEMENT
STUDIES
SUBMITTED BY
MANOJ KUMAR SINGH
ROLL NO.- L20711
BATCH NO.- LM2
IN PARTIAL FULLFILMENT OF POST GRADUATE
PROGRAM(PGP)
PGPLTM
2007-2009
1
Serial No. Topics Page No.
1. Certificate by the Organization 3
2. Certificate by the Faculty guide 4
3. Preface 5
4. Acknowledgement 6
5. Objective of Training 7
6. Executive Summary 8
7. Scope of the Study 9
8. Reliance ADA Group 10
9. Profile Of the Company 11-12
10. Business Overview 13-14
11. Board of Directors 15-16
12. Partners of the Company 17-18
13. Products of the Company 19
14. Reliance Life Insurance 20-26
14.1 Insurance Plans 27-36
15. Reliance Demat Account 37-43
16. Reliance Mutual Fund 44-54
17. Reliance General Insurance 55-59
18. Market Analysis 60-64
19. Recommendation 65
20. Bibliography 66
21. Conclusion 67
2
Certificate
This is to certify that the Winter project titled “ Sales and Distribution of Financial Product” is a bonafide and a sincere work of Mr. Manoj Kumar Singh is original and has been made under my supervision in partial fulfillment of the requirement for the award of PG Program in for the period from 21st jul 08, to 5th sep 08. I am pleased to say that his performance during this Period was Excellent.
S. N. Singh Company Guide
3
Dr. Prakash Barjatya
Director of MITSOL, Pune.
CERTIFICATE BY THE FACULTY GUIDE
This is to certify that Mr. Manoj Kumar Singh, Student of PGP(LTM) IV
Trimester has completed the summer training on the topic Sales and Distribution of
financial Products in a reputed company Reliance Money , a Part of the Reliance
Capital at BOKARO. The summer training project report is based on the work done by
the candidate himself and fulfils the requirement of the project necessary for partial
fulfillment of the PGP degree. The work carried out by the candidate on the above
mentioned topic is up to the mark as supported by the certificate issued by the
Organization where the candidate has undergone training for completion of the project
work.
To the best of my knowledge and belief, the work has not been submitted
anywhere else for award of any degree or diploma.
We wish him success in his life.
4
Private sector is one of the fastest growing sectors in the country. After the Liberalization
the Private industry still holds vast opportunities for young and experienced
professionals. On the life insurance side public sector life insurance Corporation of India
is, of course, the largest player with a history of over 50 years. After Privatization, the
PSU has been making efforts to improve efficiency and customer services. Among the
private life insurance player Reliance life insurance is the key player.
Reliance money - Anil Dhirubhai Ambani Group offers most dynamic web based trading
environment to its customers .The Reliance Money stock trading websites uses special
security features 'Security Token', which makes you online trading experience more
secure without complexity. Reliance ADG provide the vast opportunities to the new
aspirants of the business administration. The financial Sector is full of competition even
if there are a lot of opportunities to the job in Reliance Money and It is the platform to go
on the highest peak in the life of any coming one. Reliance Money is a single window
that provide the multisystem facilities of the financial Products. There are many
companies in the market which are providing the financial product like insurance, demat
account services, mutual funds, general insurance, Portfolio management services(PMS),
wealth management, gold coins, Money changing , Money Transfer, and the others.
Hence Reliance Money provide many financial product on the single window. Reliance
money deals with the product and Investment options are available in...
Equity (Stock) Trading
Derivatives Trading Special feature is available first time to track your positions
online, in real time.
Forex Trading
Commodity Trading
IPO's
Mutual Funds
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Insurance
Sometimes words fall short to show gratitude, the same happened with me during this
project. The immense help and support received from Reliance Money Limited
overwhelmed me during the project.
It was a great opportunity for me to work with Reliance money, pioneers in the
field of stock trading, a part of Reliance Capital Ltd. I am extremely grateful to the
entire team of Reliance Money at Bokaro who have shared their expertise and
knowledge with me and without whom the completion of this project would have been
virtually impossible.
My sincere gratitude to Mr. S.N.Singh (Director of Success advisory,
Bokaro) for providing me with an opportunity to work with Reliance Money Limited at
Bokaro as a company project guide who has provided me with the necessary information
and his valuable suggestion and comments on bringing out this report in the best possible
way.
I am highly indebted to Mr. Ritesh Kumar (Center Manager of Reliance
Money, Bokaro) and company project guide, who has provided me the necessary
information and his valuable suggestion and a good support in understanding the basics
of the Reliance Money easily.
I feel great pleasure to cordial thanks Mr. Avinash Dubey (Center
Manager of Reliance Money, Bokaro).
I also very thankful to my friends who help me in completion of the project. I am
thankful to that power that always inspires me to take right step in the journey of success
my life.
6
Frankly speaking, any job or the task, have the specific objective i.e. what is need and
what is the requirement of the particular work. In the same way my objective is also to
learn something from the summer internship program . It means that the training program
in any reputed company give the market knowledge of its subject matter of study.
The right choice of the company in which a student has to do the training is also the part
of the learning and what he/she wants to learn in the summer training.
In the short span since the insurance sector was opened up, many companies have
literally dictated the market’s evolution. Catering to all age and income segments, the
company stated out with the traditional insurance policies that were easy to understand,
the idea was to entice customers used to LIC’s style of functioning.
Reliance money began exploring new areas; it introduced modern products, like Unit-
linked Product where return are linked to the market performance of the underlying
assets.
Reliance Money leads and virtually all parameters; size of agent force, number of policies
sold, total sum, total sum assured, premium income and productivity of agents it has set
exacting standards for its range of products, riders offered, quality of information in
promotional material and even in the insurance awareness events organized.
What has been in favor of Reliance Money is the range of product in each
segment of life insurance-traditional, unit-linked and single premium option, that are for
retirement plan or child plan. With such a comprehensive bouquet, it caters to the
financial goals of a customer. Reliance Money a growing reputed company give the good
platform in selling of the product like insurance, Equity & commodities, derivative,
IPO’s, offshore investment, mutual fund, gold coins etc.
So the objective of study is to see in the basket of product and satisfaction of
customers with the company through research work in Bokaro.
7
This project has been a great learning experience for me, at the same time it gave me
enough scope to implement my analytical ability.
The first part gives an insight about the Demat Account, Life Insurance, General
Insurance and mutual funds and theirs various aspects. It is purely based on whatever I
learned at Reliance Money. One can have a brief knowledge about mutual funds and all
its basics through the project. Other than that the real servings come when one moves
ahead. Some of the most interesting questions regarding these products have been
covered. Some of them are:
Why has it become one of the largest financial intermediaries?
How investors do chose between funds and these products?
Most popular stocks among fund managers, most lucrative sectors for fund managers, a
special report on Systematic Investment Plan, does fund performance persists and the
topping of all the servings in the form of portfolio analysis tool and its application.
All the topics have been covered in a very systematic way. The language has been kept
simple so that even a layman could understand.
All the quarries of the customer asked by them had been solved with the support of the
seniors in the organization. The problems of the customer were being recorded for the
purpose of the research and development.
8
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.
9
10
Reliance money is a part of the reliance Anil Dhirubai Ambani Group and is promoted
by Reliance capital, the fastest growing private sector financial services company in
India, ranked amongst the top 3 private sector financial companies in terms of net worth.
Reliance money is a comprehensive financial solution provider that enables you to carry
out trading and investment activities in a secure, cost-effective and convenient manner.
Through reliance money, you can invest in a wide range of asset classes from Equity,
Equity and commodity Derivatives, Mutual Funds, insurance products, IPO’s to availing
services of Money Transfer & Money changing.
Reliance Money offers the convenience of on-line and offline transactions through a
variety of means, including its Portal, Call & Transact, Transaction Kiosks and at it’s
network of affiliates.
Some key steps of the company that are as…..
“Success is a journey, not a destination.” If we look
for examples to prove this quote then we can find many but there is none like that of
Reliance Money. The company which is today known as the largest financial service
provider of India.
Reliance Capital
Reliance Life Insurance
Reliance General Insurance
Reliance Money
Reliance Consumer
Finance
Reliance Mutual fundMutual Fund
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Success sutras of Reliance Money:The success story of the company is driven by 8 success sutras adopted by it namely
trust, integrity, dedication, commitment,
enterprise, hard work and team play, learning
and innovation, empathy and humility. These are the
values that bind success with Reliance Money.
Vision of Reliance MoneyTo achieve & sustain market leadership, Reliance Money shall aim for complete
customer satisfaction, by combining its human and technological resources, to provide
world class quality services. In the process Reliance Money shall strive to meet and
exceed customer's satisfaction and set industry standards.
Mission statement:
“Our mission is to be a leading and preferred
service provider to our customers, and we aim
to achieve this leadership position by building
an innovative, enterprising , and technology
driven organization which will set the highest
standards of service and business ethics.”
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Reliance Capital has interests in asset management and mutual funds, life and general
insurance, private equity and proprietary investments, stock broking, depository services,
distribution of financial products, consumer finance and other activities in financial
services.
Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance is India's
fastest growing life insurance company and among the top 4 private sector insurers.
Reliance General Insurance is India's fastest growing general insurance company and the
top 3 private sector insurers. Reliance Money is the largest brokerage and distributor of
financial products in India with more than 2.5 million customers and the largest
distribution network. Reliance Consumer finance has a loan book of over Rs. 8,000
crores at the end of June 2008.
Reliance Capital has a net worth of Rs.6, 862 crores (US$ 1.6 billion) and total assets of
Rs. 19,940 crores (US$ 4.6 billion) as of June 30, 2008 and over 26,000 employees.
Money has increased its market share among private financial companies to nearly
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.
Basics of Life Insurance
What is Life Insurance?
An amount of money paid to someone (called beneficiary) when the Life Assured (in
whose name the insurance policy is taken) dies. This amount can be used to pay the
expenses related to Life assureds death or can be invested to generate income that will
replace your salary. Life Insurance is an important tool in any investors portfolio & can
be used for - wealth creation, asset building, provide for contingencies and retirement
planning.
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The main reason to buy Life Insurance is to provide income replacement for your loved
ones
Types of Life Insurance Policies
Most Insurance policies are a combination of Savings & Protection.
Products are formulated by either increasing or decreasing either one of these components.
These combinations can be broadly divided into 4 groups- ULIPs
- Term Insurance
- Endowment Policies : Whole Life; Unit Linked etc
- Annuities & Pension
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Life Stage in Life Insurance
18-25 (Unmarried)
30-45 years Couples with children
45 yrs and above Matured couple Retire
d
25-30 Married couples with no kids
No dependents/ liabilities
therefore need for insurance is
less
Introduction of dependents. Start
of financial planning – balance
between asset creation & protection
Peak earning age range. High asset
creation & build up of liabilities. Critical
stage for dependents Asset base build
up & liabilities reduced/ taken
care of. Need for retirement
planning more than protection.
Need for protection low.
Greater need for regular income
flow.
Endowment / ULIP’s Endowment / ULIP’s + Term Annuities
At each stage, requirements, responsibilities and Financial needs differ
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Need Analysis in life Stages
AGE STATUS INSURANCENEEDS
SUGGESTED PRODUCTS
18yrs - 25yrs Unmarried1.Go on a holiday2.Buy a new Car3.Set up a new house4.Set up Interiors5.Buy jewellery
Short Term Endowment Product
25yrs -30yrs Married
1.High Debt, high expenditure Phase2.Family dependency on your income3.Low accumulated wealth4.Need for Planning Requirement
Temporary term or whole life Product
30yrs - 45yrs Matured couple
1.Retirement Planning2.Wealth transfer or saving vehicles3.Returns on investment4.Opting for guaranteed Product
Profits or Unit Linked Endowment/Deferred annuities
60yrs and above
Post Retirement
1.Protection in case you live long2.Protection for spouse in case of death3.Wealth accumulation for children
1.Single Premium annuities2.Long term care products3.Whole life products
23
Life Stage Example
Hello, I am Philip, sailor. Hello, I am Philip, sailor. Have seen the world. Have seen the world. Always on cruise and keep Always on cruise and keep worrying about family and worrying about family and the loans. I need financial the loans. I need financial Protection if I do not return Protection if I do not return from one voyagefrom one voyage
Savera has just Savera has just come to our lives. As come to our lives. As proud parents, We proud parents, We need to protect her need to protect her as well as create her as well as create her own financial own financial standingstanding
Worked for almost Worked for almost 25 years, now want 25 years, now want to liveto live……. I want . I want something that will something that will make my life Chinta-make my life Chinta-free after free after retirementretirement……..
Endowment
Term
Annuities
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Products of Life InsuranceLife Insurance products are usually referred to as ‘plans’ of insurance. These plans have
two basic elements; one is the “Death Cover” providing for the benefits being paid on the
death of the insured person within a specified period. The other is the “Survival Benefit”
providing for the benefit being paid on survival of a specified period.
Plans of insurance that provide only death cover are called “Term Assurance”
Plans.
Plans of insurance that provide only survival benefits are called “Pure
Endowment” Plans.
Term Life Insurance
Term Life Insurance provides protection for a specified period of time. A death benefit is
paid to the beneficiary if the insured dies within a specified period of time while the
policy is still in force.
Whole Life Insurance
Whole Life insurance is a permanent life insurance and provides protection for life. As
long as premiums are paid, a death benefit is paid to the beneficiary.
ULIPs
A ULIP is a life insurance which provides a combination of Life Insurance protection and
investment. Money can be invested in the following fund:- Equity Fund, Debt Fund,
Money Market Fund (Liquid Fund) and Balance Fund.
Annuities
Annuities are practically the same as pension. Pension provides periodical payments to
the employees, who have retired. They are paid as long as the recipient is alive. Annuities
are called the “reverse” of Life Insurance.
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Solutions for Individuals - RGI
Taking time out from your daily schedule to plan your future is a necessary task. You
could do with some help, but who can help you? Reliance Life Insurance is here with
Solutions for Individuals, a series of plans that will help you make wise investments,
protect your family, secure your child’s future and even chalk out a plan for your
retirement.
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Protection Plans
Protect your family even when you’re not around by investing in Reliance Protection
Plans. Choose a limited period plan or a lifetime protection plan depending on your
needs. The latest Protection Plans are as below…
1. Reliance Term plan
2. Reliance Simple Term plan
3. Reliance Special Term plan
4. Reliance Credit Guardian plan
5. Reliance Special Credit Guardian plan
6. Reliance Endowment plan
7. Reliance Special Endowment plan
8. Rel iance Connect 2 Life plan
9. Reliance Whole Life plan
10. Reliance Wealth + Health plan
11. Reliance Cash Flow plan
Savings & Investment Plans
Reliance Savings & Investment Plans help you to set aside some money to achieve
specific goals in life, which means that you can enjoy life and provide for your family’s
daily needs. The savings and investment Plans are as below…
1. Reliance Total Investment Plan Series I - Insurance