Reliance Mutual Fund Final

8/8/2019 Reliance Mutual Fund Final

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SUMMER TRAINING PROJECT REPORT

ON

TO STUDY THE AWARENESS OF THE

FINANCIAL PRODUCTS OF

RELIANCE MONEYSubmitted to :

Kurukshetra University, Kurukshetra

For The Partial Fulfillment Of

Master Of Business Administration ( Finance )

Project Done at

RELIANCE MONEY

Supervised By: Submitted By:

Prof. Ajay Sidana Shivam Punaini

Head, Deptt MBA M.B.A- III ( Finance )

Class Roll No- 953

AMRIT INSTITUTE OF MANAGEMENT,SHAHPUR



ACKNOWLEDGEMENT

I must acknowledge my indebtedness to various personalities, but for

whom, this project could not have seen the light of the day.

I express my sincere gratitude to my guide Mr Manish Kaushik for his

able guidance, continuous support and cooperation throughout my

project, without which the present work would not have been possible.

I would also like to thank the entire team of Reliance Money, for the

constant support and help in the successful completion of my project.

Shivam Punaini



TABLE OF CONTENT

TOPICS PAGE NO.

INTRODUCTION TO THE COMPANY

BOARD OF DIRECTORS

RELIANCE MONEY

INNOVATIVE USE OF TECHNOLOGY

RELIANCE MUTUAL FUNDS

RELIANCE EQUITY ADVANTAGE FUND

RELINNCE REGULAR SAVING FUND

SWOT ANALYSIS

PROCEDURE OF CLIENT ACQUISITION

BRAND POSITIONING

RESEARCH METHODOLOGY

LIMITATIONS OF THE PROJECT

SCOPE OF THE STUDY

COMPETITOR ANALYSIS

ANALYSIS AND INTERPRETATION

DISCUSSION

CONCLUSION AND RECOMMENDATION

BIBLIOGRAPHY

ANNEXURE



INTRODUCTION TO THE COMPANY

Re liance 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 activities in financial services.

Reliance Capital entered into lucrative online trading business with

Reliance money. There are mixed reports about this online trading

platform. It shook up online trading business with cheap brokerage

charge offer.

Business Overview

RCL is 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 sector 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 company’s investment in infrastructure projects



stood at Rs. 1071 Crores. The investment portfolio of RCL is structured

in a way that realizes the highest post-tax return on its investments.

Reliance Capital Ltd. is one of India’s leading and amongst the fastest

growing private sector financial services companies, and ranks among the

leading private sector financial services and banking companies, in terms

of net worth. Reliance Capital Ltd. has interests in asset management and

mutual funds, life and general insurance, private equity and proprietary

investments, stock broking and other financial services.



BOARD OF DIRECTORS

• Amitabh Jhunjhunwala, Vice-Chairman

Amitabh Jhunjhunwala, an FCA, has over 23 years of experience in

finance and the capital markets. Amitabh is also the Director of Reliance

Capital Asset Management Limited.

• Rajendra Chitale, Independent Director

Rajendra P. Chitale, an eminent Chartered Accountant, is the Managing

Partner of M/s M. P. Chitale & Co. He is a Director on Boards of the

National Stock Exchange of India (NSE), Asset Reconstruction Company

(India) Ltd, Hinduja TMT Ltd and Gujarat Ambuja Cements Ltd. He is

also a member of the Advisory Group on Derivatives and the Takeover

Panel, Securities and Exchange Board of India, as well as the Company

Law Advisory Committee of the Government of India.He has also served

on the boards of Life Insurance Corporation of India, Unit Trust of India,

SBI Capital Markets Ltd and Small Industries Development Bank of

India.

• Shri C. P. Jain

Shri C.P. Jain, aged 60 years, is the former Chairman and Managing

Director of National Thermal Power Corporation (NTPC). Shri Jain has

an illustrious career spanning over four decades of contribution in thefields of financial management, general management, strategic

management and business leadership. He is a fellow member of the

Institute of Chartered Accountants of India with an advanced diploma in

Management and is a law graduate. Shri C.P. Jain joined the Board of

NTPC in 1993 as Director (Finance) and was elevated as Chairman &

Managing Director in September 2000. He was Chairman of the Global

Studies Committee of World Energy Council (WEC), world’s largest



energy NGO with nearly hundred member-nations. He has been on

several important committees of the Government of India, latest being the

‘Adhoc Group of Experts on Empowerment of CPSEs’. He was

Chairman of Standing Conference of Public Enterprises (SCOPE)

between April 2003 and March 2005.



RELIANCE MONEY

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. 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

The highlights of Reliance money's offerings are:

Cost-effective

The fee charged by the affiliates of Reliance Money, through whom the

transactions can be placed, is among the lowest charged in the present

scenario. Pay a flat fee of just Rs. 500/- valid for 2 months or specified

transactional value. The facility of trading is subject to expiry of the

validity period or value limit, whichever comes first.

Illustrations depicting fee structure and validity limits

♦ Access fee- Rs. 500



Validity- Time validity of 2 months or Turnover validity of Rs. 1 cr.,

whichever is earlier

Turnover limit- Non-delivery turnover of Rs. 90 lac, Delivery turnover of

Rs. 10 lac




Turnover limit- Non-delivery turnover of Rs. 2.7 cr., Delivery turnover of

Rs. 30 lac




Turnover limit- Non-delivery turnover of Rs. 5.4 cr., Delivery turnover of

Rs. 60 lac

Unutilized delivery limit may be added to Non-delivery limit



Convenience

You have the flexibility to access Reliance Money services in multiple

ways: through the Internet, Transaction Kiosks, Call & Transact (phone)

or seek assistance through our Business Partners

Security

Reliance Money provides secure access through an electronic token that

flashes a unique security number every 32 seconds (and ensures that the

number used for earlier transaction is discarded). This number works as a

third level password that keeps your account extra safe

Single window for multiple products

Reliance Money, through its affiliates/partners, facilitates transactions in

Equity, Equity & Commodity Derivatives, Offshore Investments, Mutual

Funds, IPOs, Life Insurance and General Insurance products

All overseas investments are subject to rules, regulations and guidelines

of the Reserve Bank of India as laid down from time to time

3 in 1 integrated access

Reliance Money offers integrated access to your banking, trading and

demat account. You can transact without the hassle of writing cheques

Demat account with Reliance Capital

Hassles free demat account with Reliance Capital. The Annual

Maintenance Charge for the Demat Account is just Rs. 50/- per annum

Other Services

Through the portal www.reliancemoney.com, Reliance Money provides:

a. Reliable research, including views of external experts with an enviable

track record

b. Live news from Reuters and Dow Jones



c. CEOs'/experts' views on the economy and financial markets

d. The Personal finance section provides tools that help you plan your

investments, retirement, tax, etc

e. Analyze your risk profile through the Risk Analyzer

f. Get a suitable investment portfolio using the Asset Allocator

KEY BENEFITS OF RELIANCE MONEY

Equity is a share in the ownership of a company. It represents a claim on

the company’s assets and earnings. As you acquire more stock, your

ownership stake in the company increases. The terms share, equity and

stock mean the same thing and can be used interchangeably.

Holding a company’s stock means that you are one of the many owners

(shareholders) of a company, and, as such, you have a claim (to the extent

of your holding) to everything the company owns. Yes, this means that

technically, you own a portion of every piece of furniture; every

trademark; every contract, etc. of the company.

As an owner, you are entitled to your share of the company’s earnings as

well as any voting rights attached to the stock.

Another extremely important feature of equity is its limited liability,

which means that, as a part-owner of the company, you are not personally

liable if the company is not able to pay its debts. In case of other entities

such as partnerships, if the partnership goes bankrupt, the partners are

personally liable towards the creditors/lenders and they may have to sell

off their personal assets like their house, car, furniture, etc., to make good



the loss. In case of holding equity shares, the maximum value you can

lose is the value of your investment.

Even if a company of which you are a shareholder goes bankrupt, you can

never lose your personal assets.

Here is some Useful Information available on R- Money:

Investment options are available in:

1. Equity (Stock) Trading

2. Derivatives Trading

*Special feature is available first time to track your positions online, in

real time.*

3. Forex Trading

4. Commodity Trading

5. IPO's

6. Mutual Funds

7. Insurance

Reliance Money gives you the access to Over 5000 Schemes of 28 Assets

Management Companies (AMCs) with just one account. Some of them

included are.

Portfolio Tracker

Manage your mutual fund portfolio from the Reliance Money account.

Benefit from live valuation and alerts and also track NAVs of any scheme

online.



Choice of investment strategies

From just two scheme types (equity scheme and debt scheme) offered

when the mutual fund industry was conceived more than four decades

ago, today, mutual funds offer a plethora of scheme types with different

investment strategies.

Life Insurance

Reliance Money Account gives you the advantage of buying policies

from 12 different Life Insurance companies, helping you get unbiased

opinion.

General Insurance

Reliance Money Account also extends the product offerings from 10

General Insurance Companies with exhaustive range of insurance

products that covers most risks including Motor, Health, Property,

Marine, Casualty and Liability.

Over the Counter Products

Your Reliance Money Account makes it so simple for you to buy

insurance products that its as easy as buying something over the counter.

RelianceMoney.com is offering most dynamic web based trading

environment to its customers. The new trading platform has many new

features which basically fill up the gap between old online trading

companies in India and their customers.

The Reliance Money trading websites comes with special security

features Security Token, which makes you online trading experience

more secure without complexity.



Stock Trading is available in BSE and NSE. Offline trading is also

available through Reliance Money partners in your city and through

phone by dialing 022-39886000.

TYPE OF ACCOUNT

Reliance money is offering 3 types of accounts to its customers. Account

for beginners, for middlers and for experts.

How to open account with Reliance Money?

Account opening with Reliance Money is easy. Simply fill a form online

at below address and somebody from Reliance Money will contact you

soon.

Advantages of Reliance Money

1. Extra security features with 'Security which is the most secure and

tested technology in computer world.

2. Simple, easy and fast online stock trading.

3. Almost all investment options are available under one account

including Equity Trading, Derivatives, Forex, Commodity, IPO,Mutual Funds and Insurance.

4. Branches are now available in all major cities and the number is

growing. Branches are open from 9am to 9pm. Online trading is

presently at its nascent stage and is not the most preferred option for

financial transactions owing to security concerns and lack of

accessibility points. Reliance Money through these hi-speed,



technologically secure kiosks will therefore be able to reach out to all

its existing and potential customers at even the remotest locations in

the country without compromising on the security of its customer’s

funds.

Why should you choose Reliance Money?

1. Because it is from Reliance. Reliance capital has big plans

regarding this business. It may announce attractive offers to gain

market share. Reliance will never enter into a business with small plans.

2. Its brokerage charges are lowest in the country among major

providers. With Rs 2500 prepaid amount, you can trade for Rs 5 crore.

3. Site is simple in design, fast to access and easy to find

required information.

4. Its daily reports on market trends and technical breakouts are

very useful.

5. Website content is divided according to the requirements of

experts and beginners.

6. You can trade in Forex, Derivatives, Mutual funds, IPO and

buy Insurance.

Why should you stay away from reliance Money?

1. The trading platform is still in development stage. There are

many bugs needs to be rectified.



2. Its “Insta trade” service is not up to the standard. Reliance

Money software is a java based simple software. It should provide

advanced software to meet the needs of advanced traders.

3. Its system is sometimes very slow and orders are not placed

at the time.

4. Its market watch solution is a way behind its competitors

like Money control and ICICIdirect.

5. Its service people are not as efficient as competitors.

6. It is still not providing options to buy Post office savings.

7. It is recommending few stocks even when stock markets are

on roll.

Reliance Money still needs many improvements to its online trading

platform. Reliance capital is spending big money to improve the service.

It needs to train service to the needs of market people. It still needs to

include more research reports like ICICIdirect website.

It should make complete makeover to market watch page. It is too early

to make final judgment on Reliance money.



INNOVATIVE USE OF TECHNOLOGY

Reliance Money provides secure access through an electronic token that

flashes a unique security number every 32 seconds (and ensures that the

number used for the earlier transaction is discarded). This number works

as a third level password that keeps you account extra safe. It was much

popular during the last decade but due to the changes in the technologies

it is not currently used in the current scenario due to that it is diminish

from the market



RELIANCE MUTUAL FUNDS

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani

Group 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 100 cities across India and an investor base of over 3.38

million.

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.





(An open-ended Diversified Equity Scheme.)

The primary investment objective of the scheme is to seek to generate

capital appreciation & provide long-term growth opportunities by

investing in a portfolio predominantly of equity & equity related

instruments with investments generally in S & P CNX Nifty stocks and

the secondary objective is to generate consistent returns by investing in

debt and money market securities.

Get the Reliance Equity advantage

Just as an expert coach identifies a promising talent, investing in equity

markets requires an expert's foresight. At Reliance Mutual Fund they

have groomed a team of professionals with the aim to get the maximum

advantage out of your investments. Introducing Reliance Equity

Advantage Fund, an open-ended diversified equity scheme which seeks

to generate capital appreciation and provide long-term growth

opportunities for your investments.

Reliance Equity Advantage Fund

Reliance Equity Advantage Fund is an open-ended diversified equity

scheme, which proposes to invest in line with the sector ratio of S&P

CNX Nifty. At least, 70-100% of corpus will be invested in equity &

equity related instruments and the balance 0-30% in Debt & Money

market instruments.

RELIANCE REGULAR SAVINGS FUND



(An Open-ended Scheme.)

Reliance Regular Savings Fund provides you the choice of investing in

Debt, Equity or Balanced options with a pertinent investment objective

and pattern for each option.

The Reliance Regular Savings Fund is an open-ended scheme, which

comes with its own ATM cum Debit card -the Reliance Any Time Money

Card.You don't have to give up the returns of a mutual fund for instant

availability of cash. The Reliance Regular Savings Fund endeavours to

deliver both.

For the first time in India, your mutual fund offers instant cash

withdrawal facility on your investment at any VISA-enabled ATM near

you. With a choice of three investment options, the fund is truly, the

smart new way to invest.

Get instant cash when you need it

Simply walk down to any VISA enabled ATM near you and withdraw

your money invested in the fund (redeem your units).

Cashless transactions at over 24 million* Merchant Establishment

locations

The Reliance Any Time Money Card is accepted at over 24 million

Merchant Establishment locations worldwide. You can now have cashless

transactions, whenever you make a purchase or use the service at any

Merchant Establishment validated by VISA.

Just Rs.100/-per month



Invest as little as Rs.100/-every month in the Reliance Regular Savings

Fund through the Systematic Investment Plan (SIP) route to build your

investment little by little, month by month. Now even your small savings

can mean a lot.

Round-the-clock access

With the Reliance Any Time Money Card you can check the Current

Holding Value as well as the Withdrawal Limit of your investment any

time of the day or night. The card is your key to access your investmentround the clock.

Withdrawal Limits

You can withdraw only upto the maximum permissible ATM withdrawal

limit in a day (which is as prescribed by the Bank for ATM/Point of Sale

transactions) or 50%of your withdrawal limit (as set by Reliance Mutual

Fund) whichever is lower.

INVESTMENT OBJECTIVE

Reliance Regular Savings Fund provides you the choice of investing in

Debt, Equity or Balanced options with a pertinent investment objective

and pattern for each option.

Debt Option: The primary investment objective of this option is to

generate optimal returns consistent with a moderate level of risk. This

income may be complemented by capital appreciation of the portfolio.



Accordingly, investments will predominantly be made in Debt & Money

Market Instruments.

Equity Option: The primary investment objective of this option is to

seek capital appreciation and/or to generate consistent returns by actively

investing in Equity &Equity-related Securities.

Balanced Option: The primary investment objective of this option is to

generate consistent returns and appreciation of capital by investing in mix

of securities comprising of equity, equity related instruments & fixed

income instruments.



SWOT ANALYSIS

Strengths Weakness

• Service

• Distribution network

• Marketing

• Products

• Customer Satisfaction

• Branding

• Competition from Banks

Opportunities Threats

• Ever increasing market

• Improving technology

• Unfulfilled needs of

customers.

• Education level

• New competitors

• Technology based business

A SWOT analysis focuses on the internal and external

environments, examining strengths and weaknesses in the

internal environment and opportunities and threats in the

external environme



PROCEDURE OF CLIENT ACQUISITION

• In the first phase we are given training and we are explained about

different things of market. They described us about Reliance Money,

introduction, products and services offered by Reliance Monet in the

market. We have been trained properly about Reliance Money.

• After that they conduct a mock viva, in this they ask about the real

life problem faced by the customers.

• They provide us leads and we make calls. Three types of leads are

provided to us:

People who registers themselves on Reliance Money website

willing to be client of Reliance Money and want to know about its

product.

People who have Demat account already with any another broker.

# People who are totally unknown to this market.

• Then after that we have to provide details of product and convince

them. People who have already Demat account, we have to convince

them by giving information about Reliance Money services benefits.

DOCUMENTS PHOTOCOPIES REQUIRED:-

(A) TWO COLOURED PHOTOGRAPHS (self signed).

(B) For Identification Proof - VOTER ID CARD / DRIVING

LICENCE / PASSPORT/ PAN CARD (ANY ONE)



(C) For Residence Proof - BANK STATEMENT / VOTER ID CARD /

RATION CARD / DRIVING LICENCE /PASSPORT / TELEPHONE

BILL STATEMENT /ELECTRICITY BILL STATEMENT

(ANY ONE)

(D) Bank statement

(E) One account opening cheque

(F) You can also deposit the initial margin money at the time of opening

the account

• Maintaining dairy of clients and contacting them at regular basis.

To get feedback from them about Reliance Money services.



BRAND POSITIONING

Reliance Money is the flagship brand of Reliance ADA Group for its

foray into Equity, Commodity and Forex broking in India. Reliance

Money is promoted by Reliance Capital, one of the largest NBFCs in

India.

Reliance Money, the brokerage and distribution arm of Reliance ADAGroup, 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

India has 270 million bank accounts, 30 million mutual fund folios, but

only 6 million unique demat accounts. “This low level of penetration by

existing brokerages means that the scope for business is tremendous.

The brokerage arm has already established its presence in 700 towns in

the country through 2500 outlets - part owned by the company and part

set up by franchisees.

Reliance Money’s brokerage rates are quite competitive. Pre-paid cards

of various denominations is to help investors with varying risk appetites.



If one 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.

This roughly translates to 0.05% for delivery trades and 0.005% for non-

delivery trades. Industry rates vary between 0.4% and 0.85% for delivery

trades, and between 0.05% and 0.10% for non delivery trades. Reliance

Money’s attempt to expand the breadth of the market has been dictated

by the growing interest in the stock market among a number of investors

in the smaller towns and cities.

Through its state-of the-art online trading platform, Reliance Money is

gradually making an active foray into Equity, Commodity and Forex

broking. For the first time in India, R Trade will provide the Indian

investor the facility of trading in equity, commodity and forex on a single

platform.

Reliance Money Ltd is changing tack in order to move a step beyond the

retail business, which has so far been its mainstay.

RML, which intends to compete with strong retail brokerage players likeICICI Direct, will soon start catering to institutional clients in a more

organised manner, though retail will continue to be its focus.

The company plans to pay more attention to an area that has already seen

considerable demand, courtesy wholesale investors who are increasingly

providing significant business to securities broking outfits.



The idea is to increase the number of outlets RML currently has in order

to reach out to more customers.

Investors have two options while trading through Reliance Money. They

can use the internet or call in their orders for company officials to

execute.

Reliance Money has also partnered UK-based CMC Markets, a global

player in the online derivatives trading segment, to bring overseas

investment products to Indian investors. This tie-up is to enable

customers of Reliance Money gain access to several offshore products

including — foreign equities, currency and commodities within the RBI-

mandated limits. As a matter of fact, several investors reportedly made a

killing by trading on the shares of Corus in the days prior to its auction.

It is an endeavour to change the way India trades in financial markets and

avails of various financial services. Reliance Money ensures maximum

security with a unique security token to keep your online account safe.

Reliance Money plans to be the largest player, at least as big as the next

four companies in the commodities broking space. Since a lot of money

has been lost in commodities markets in recent times, there is a need for a

well-designed product to bring back investor confidence. To take

participation to the next level, it is imperative to build awareness among

retail investors. Further, given the current level of maturity, the dealer

franchisees need to be trained before the knowledge can percolate down

to every participant.



Retail financial services firm Reliance Money has tied with depository

NSDL and National Stock Exchange to spread equity investment culture

in the country, an initiative that will help it double its customer base by

this fiscal end.

Reliance Money aims to expand the market by bringing in newer

investors and facilitating them through appropriate handholding at the

initial stages of their capital market journey. The initiative aims to

introduce a consumer education programme for educating over one lakh

new investors in the country over the next six months, the company said.

The programme involves educating and guiding new investors in basics

and fundamentals of investing in equities and addressing various issues

related to stock market. Since its launch in April, the Anil Dhirubhai

Ambani group firm has already roped in 1.50 lakh customers and plans to

multiply this number to over three lakh by the end of this fiscal with such

retail initiatives, the company said. Average daily turnover for Reliance

Money has already crossed Rs 600 crore, over one per cent of total

turnover of NSE and BSE, since its launch.

The country has an immense growth potential with 30 crore plus bank

accounts and three crore Mutual Fund folios in a 12-years old industry.There are only six million unique depository accounts, although the

industry is over 100 years old. India saves 28 per cent as a percentage of

GDP and only 5 per cent of this saving is invested in capital markets.

There is an urgent need to spread the equity culture to increase the depth

of capital market and enable wider participation. This can only change if

we spread it across the country.



RESEARCH METHODOLOGY

Type of research : DESCRIPTIVE RESEARCH

Sample size : 150

Sampling technique : RANDOM SAMPLING

Primary Data:

First hand information was obtained through face-to-face interviews and

questionnaire.

Questionnaire Design

A questionnaire is designed to know the view of employees of the

companies as well as of the customer perception about reliance financial

products..

Secondary Data

Under Secondary sources, we tapped information from internal &

external sources. We made use of Internet (such as search engine

www.google.com), and miscellaneous sources (such as brochures,

pamphlets, library) under external sources.

ANALYSIS

http://www.google.com/




To make our research project most effective in a given time period of two

months surveyed the information of the competitors. We undertook both

Explorative as well as Conclusive Research Design. The data has been

collected from both Primary as well as Secondary sources and we also

did the fieldwork for which utmost care has been taken to keep project

unbiased from personal opinion.

SIGNIFICANCE OF THE STUDY

Every research is conducted to fulfill certain objective and these

objectives in turn fulfill some purpose. MBA curricular is designed to

give more practical exposes to the student so that he can make use of

theoretical knowledge in the real life situation, with this thrust

dissertation study has been included which provides opportunity to

research to gain practical insight of the market. This hand on experience

helps him in identifying the critical factor of consumer buying behavior.

This rich experience will be great help in researcher’s future endeavors

and it also solves the purpose for the partial fulfillment of MBA

curriculum.

I sincerely believe that road to improvement is never- ending and onealways learns from a new experience. This project is a step towards

gaining knowledge about real world and putting the theory of practice. I

shall look forward to and gratefully acknowledge all suggestion on this

small step I have taken.



The report consists of a step–wise efforts towards meeting the objectives

of the study. It covers the step-wise collection of data collection and the

representation of the data together with the analysis. It also includes some

suggestions put forward hoping it would help the company achieve its

vision.

MANAGERIAL USEFULNESS OF THE STUDY

The marketing department can use this study to enhance their marketing

strategies for better sales. This report helps marketing department in

taking decision to what change in distribution channels and what should

be done so that marketing problem could be shorted out and how to sell

their range of product in the competitive market.

The very essence of every project related to marketing is providing a

view to management for chalk out the organization. So that they can

maintain a viable fit between the organization objective, skill and

resources and it’s changing market opportunities. Also give proper shape

to the company business target profit and growth. It provides a feedback

to the organization about their sales, sales schemes and what impact dose

it has on the retailers and consumer. Every market research proves useful

suggestion to the organization. Marketing research helps the firm in every

component of the total marketing task. It helps the firm in every

component of the total marketing task. It helps the firm acquire a better

understating of the buyer, the competition and marketing environment. It

also aids the formulation of the marketing mix, product, distribution and

pricing needs marketing research support. It also in taking the



information of competitor’s strategies and their impact on the buyer. The

study revels may fact that have come up during the project and these facts

can either be used as opportunities in exploring and expending the

business as well as can be used as safeguard against threats by the

competitors to prepare an effective marketing strategy. Every market

research proves usefulness to the organization. Marketing research helps

the firm in every component of the total marketing task. Its helps the firm

acquire a better understanding of the consumer, the competition and the

marketing environment. It also aids he formulation of marketing mix,

decision on each element of marketing mix, product, distribution and

promotion and pricing etc need the support of marketing research



LIMITATIONS OF THE PROJECT

Services Of Competitors:

We cannot give proper comment on competitor’s services till we use it.

But I try to collect as accurate information as possible. As we all know

services are intangible and we cannot predict its quality, it is a thing to

feel not to see.

No proper assurance of right information:

The main data sources are websites, telephonic information and offices

visit.

•

The data on websites might be possible, not get updated.

• The marketing person might be possible, is not through with all

concepts to whom I contacted.

• Sometimes, they try to hide information.

• Lack of awareness of Stock market: -- Since the area is not

known before it takes lot of time in convincing people to start

investing in shares primarily in IPO’s.

Mostly people comfortable with traditional brokers: -- As people are

doing trading from there respective brokers, they are quite comfortable to

trade via phone.



Lack of Techno Savvy people and poor Internet penetration:

- Since most of the people are quite experienced and also they are not

techno savy. Also Internet penetration is poor in India.

Some respondents are unwilling to talk : -- Some respondents either do

not have time or willing does not respond, as they are quite annoyed with

the phone call.

Inaccurate Leads: -- Sometimes leads are provided which had error in it

which varies from only 5 digit phone number to wrong phone number

Misleading concepts: -- Some people think that Shares are too risky and

just another name of gamble but they don’t know its not at all that risky

for long investors.



SCOPE OF THE STUDY

These are some of the following scope of the study:-

1. The present study can be extended to assess the present marketing

condition of stock market.

2. The study can be used to design a proper product, price, place &

promotional strategy for stock market.

3. From the present study we can know the market share of different

by-products and accordingly formulated strategy to enhance it.

4. The result of marketing success of different by-product can be

interpreted to assess the rate of employee’s satisfaction in that department

(marketing).

5. This study can be applied to find out an effective distribution

channel to enhance the sale of by-product of Reliance Money.



COMPETITOR ANALYSIS

5 PAISA

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 5Paisa's 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

1. Very fast execution speed.

Disadvantages of 5paisa Trading Terminals

1. No intra-day tick by tick charts in Investor Terminal

(IT).

2. Learning 5paisa Trading Terminal is little hard.



MOTILAL OSWAL SECURITIES

Motilal Oswal Securities Ltd. (MOSt) is one of the best

broking houses in India. Founded in 1987, 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.

Type of Account

MOSt E-Broking

MOSt E-Broking is complete online stock trading

solution for Indiaian stock market. 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.

How to open account with Motilal Oswal Securities

Ltd. (MOSt)?

You could use one of the following options to open

account with ICICIDirect.

• Visit MotilalOswal.com and fill the "Open an

Account" form.

• Contact MOSt by sending email at

[email protected]

• Call MOSt and tell them that you are interested in

opening an account with them.

Awards

1. 2005, Asiamoney Brokers ranked MOSt the best

Indian brokerage firm in India.

2. March 2006, AQ Research declared MOSt the best

research house for Indian stocks.

http://www.motilaloswal.com/ebr-open.htm

mailto:[email protected]

http://www.motilaloswal.com/ebr-open.htm




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.

Features on HDFC Securities Online trading

:

1. Seamless Transactions - By integrating your

accounts, we ensure minimal waste of time during

movement of your funds and shares.



2. Speed - Orders are placed electronically, so proceeds

are available instantly.

3. No manipulation - To prevent any mismanagement,

we will send you an email confirmation, the minute

your order is executed.

4. Safety and Security - HDFC Securities offer the

highest level of security such as 128-bit encryption

technology.

5. Dedicated and Separate contact numbers - for trading over the phone as well as for customer care.

Document Required to open account with HDFCsec

Any Indian resident/non resident individual NRI (except

for the US NRIs ) or an Indian Corporate can register

with HDFC sec. However, to become a member, you will

have to open savings/current and Demat accounts with

HDFC Bank. Following documents are required to open

account with HDFC sec.

1. One passport size photograph.

2. Copy of PAN card.

3. Identity proof - copy of passport or PAN card or

voter ID or driving license or ration card.



4. Address proof - copy of driving license or passport

or ration card or voter card or telephone bill or

electricity bill or bank statement.

Brokerage and fees :

1. Rs. 799/- (Including trading account, bank account

and DP account with HDFC)

Please note: HDFC Bank savings account required a

quarterly minimum balance of Rs. 2,500/-. If youalready have Saving account or DP account with

HDFC, you could link them with trading account.

IDBI PAISA BUILDER

Idbipaisabuilder.in is a multi purpose online stock trading

website from IDBI Capital Market Services Ltd. , a

leading provider of financial services in India and is a

100% subsidiary of Industrial Development Bank of India

(IDBI).

http://idbicapital.com/






Idbipaisabuilder.in allows investing in equity shares,

derivatives (futures & options) mutual funds & IPO's in

India Stock Markets. You can buy or sell securities on

NSE and BSE Stock exchanges.

Type of Account

Paisa Power Classic Trading Terminal

Paisa Power Classic Account

Paisa Power Classic Account is online stock trading

account for beginners and low volume traders in India

Stock Market. It allows investor to invest in Equity,

Mutual Funds and IPOs online. Following are few popular features of this account:

a. Online trading account for investing in Equities

and Derivatives.

b. Short learning curve helps you to start quickly.

c. Easy to use features.



d. Evaluate & buy mutual funds schemes online

and check on fund rankings through our

performance map.

e. Apply for IPO’s online. No paper work or

check required for applying in IPOs.

f. Integration of: Online trading + Bank + Demat

account

g. Trading is available in both BSE and NSE.

Paisa Power Streaming Trading Terminal

2. Paisa Power Streaming Account

Paisa Power Streaming Account for online trading is

for high volume and frequent equity traders. As classic

account this account also provides investment options

in Stocks, Mutual Funds and Initial public offers

online. Following are few popular features of this

account:



a. Live refreshing equity prices, which enable you

to keep track of every price movement as soon

as it takes place.

b. Setting price alerts on the scripts in order to

notify you as soon as your scrip reaches a

particular price point.

c. Multiple market watches, message window and

trading window.

d. Evaluate & buy mutual funds schemes onlineand check on fund rankings through our

performance map.

e. Apply for IPO’s at the click of a button without

any of the hassle of tedious paperwork and

processes involved in an offline IPO

application.

f. Trading is available in both BSE and NSE.

Brokerage and fees:

Advantages of IDBIPaisaBuilder

1. Idbipaisabuilder.in enables you to set up a single

integrated 3-in-1 account that links your Bank,

Demat and Trading accounts.

2. All your transactions are online which means

absolutely no paperwork involves.



3. You can invest anywhere, at absolutely anytime,

even when the market is closed. All your orders are

confirmed immediately with no delays.

4. Trade over Phone (ToP) facility is available in

addition to internet trading. ToP allows you to place

orders or check order status on phone.

5. Idbipaisabuilder.in website is 'Version Certified',

which ensures complete confidentiality of your

transactions with highest security.

6. Help documents and demos are available to invest in

equity, mutual funds and IPO’s which helps you to

get familiar with the process on investing through

Idbipaisabuilder.

How to open an account with IDBIPaisaBuilder?

Over Internet:

Fill a simple form and Idbipaisabuilder

representative will contact you with all formalities

to open an account.

On Phone:

Call Toll Free Number: 1800-22-3366 or 022-32915001

Through Email:

Simply send an email to [email protected] ,

requesting for any information you required.

Visit Branch Offices:





Click here to find out nearest IDBIPaisaBuilder

Branch Offices.

Useful links & info about IDBIPaisaBuilder

1. Official website: http://www.idbipaisabuilder.in/

2. List of Branch Offices .

3. Product Demo: Paisa Power Classic Account

4. Product Demo: Paisa Power Streaming Account

5. Corporate office: IDBI Capital, Mafatlal Center,

5th Floor Nariman point, Mumbai 400-021 India

6. Customer Service E-mail: email-

[email protected]

7. Customer Service Phone: 1800-22-3366

ICICI DIRECT

ICICI Direct (or ICICIDirect.com) is stock trading

company of ICICI Bank. Along with stock trading and

trading in derivatives in BSE and NSE, it also provides

facility to invest in IPOs, Mutual Funds and Bonds.

Trading is available in BSE and NSE.

http://www.idbipaisabuilder.in/common/branchlocator.asp

http://www.idbipaisabuilder.in/


http://idbipaisabuilder.in/equity/eqclassicdemo.asp

http://idbipaisabuilder.in/equity/eqstreamingdemo.asp


http://www.idbipaisabuilder.in/


http://idbipaisabuilder.in/equity/eqclassicdemo.asp

http://idbipaisabuilder.in/equity/eqstreamingdemo.asp



Type of Account

Share Trading Account

Share Trading Account by ICICIDirect is primarily for

buying and selling of stocks in BSE and NSE.

This account allows Cash Trading, Margin Trading,

MarginPLUS Trading, Spot Trading, Buy Today Sell

Tomorrow and Call and Trade on phone.

ICICIDirect.com website is the primary trading platformfor this trading account. They also provide installable

application terminal based application for high volume

trader.

Wise Investment Account

Along with stock trading and IPO investing in BSE and

NSE, Wise Investment account also provide options to

invest in Mutual Funds and Bonds online.

Online Mutual funds investment allows investor to invest

on-line in around 19 Mutual Fund companies. ICICI

Direct offers various options while investing in Mutual

Funds like Purchase Mutual Fund, Redemption and switch

between different schemes, Systematic Investment plans,

Systematic withdrawal plan and transferring existing

Mutual Funds in to electronic mode. This account also

provides facility to invest in Government of India

Bonds and ICICI Bank Tax Saving Bonds .



ICICIDirect.com website is the primary tool to invest in

Mutual Funds, IPOs, Bonds and stock trading.

Active Trader Account

Active Trader account gives more personalized

investment options to the investors. It allows investor to

use online and offline stock trading. It also provides with

independent market expertise and support through a

dedicated Relationship Manager from ICICI.Active Trader also provides commodity trading.


1. Account opening fees : Rs 750/- (One time non-

refundable)

2. Brokerage : ICICIDirect.com brokerage varies on

volume of trade and inclusive of demat transaction

charges, service taxes and courier charges for

contract notes. It ranges from 0.1% to 0.15% for

http://www.chittorgarh.com/images/ipo/ICICI-website-big.gif



margin trades, 0.2% to 0.425% for squared off trades

and 0.4% to 0.85% on delivery based trades.

How to open account with ICICIDirect?

For Online Stock Trading with ICICI, investor needs to

open 3 accounts...ICICI Bank Account, ICICI Direct

Trading Account and ICICI Demat Account (DP

Account).

Note: If you already have a bank account or demat

account with ICICI, you could link it with new

ICICIDirect trading account.

Opening trading account with ICICI is easy. You could

use one of the following options to open account with

ICICIDirect.

• Visit ICICIDirect.com and fill the "Open an

Account" form.

• Call ICICI and tell them that you are interested in

opening an account with them.

In both the cases ICICI representative contact you in a

day or two and tell you about the procedure to open the

account. They usually send somebody to your home to

collect documents, signature and for demo if required.



Advantages of ICICIDirect

1. 3-in-1 account integrates your banking, broking and

demat accounts. All accounts are from ICICI and

very well integrated.

2. Investment online in IPOs, Mutual Funds, GOI

Bonds, and Postal Savings Schemes all from one

website. General Insurance is also available from

ICICI Lombard.

3. Trading is available in both BSE and NSE.

Disadvantages of ICICIDirect

1. Getting access to ICICIDirect.com website during

market session can be frustrating.

2. ICICIDirect brokerage is high and not negotiable.

3. 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.

http://www.sski.co.in/






Sharekhan's 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.

Type of Account

Classic Account Trading Terminal

Share Khan Classic account

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.

a. Online trading account for investing in Equities

and Derivatives



b. Free trading through Phone (Dial-n-Trade)

I. Two dedicated numbers for placing your

orders with your cellphone or landline.

II. Automatic funds transfer with phone banking

(for Citibank and HDFC bank customers)

III. Simple and Secure Interactive Voice

Response based system for authentication

IV. get the trusted, professional advice of our

telebrokers

V. After hours order placement facility between

8.00 am and 9.30 am

c. Integration of: Online trading + Bank + Demat

account

d. Instant cash transfer facility against purchase &

sale of shares

e. IPO investments

f. Instant order and trade confirmations by e-mail

g. Single screen interface for cash and derivatives



Speed Trade Treading Terminal

ShareKhan Speed Trade account

: This accounts for active traders who trade

frequently during the day's trading session.

Following are few popular features of Speed Trade

account:

h. Single screen interface for cash and derivatives

i. Real-time streaming quotes with Instant order

Execution & Confirmation

j. Hot keys similar to a traditional broker terminal

k. Alerts and reminders

l. Back-up facility to place trades on Direct Phone

lines



INDIA BULLS

India bulls is India's leading Financial Services and Real

Estate Company having presence over 414 locations in

more than 124 cities. India bulls Financial Services Ltd is

listed on the National Stock Exchange, Bombay Stock

Exchange, Luxembourg Stock Exchange and London

Stock Exchange.

Type of Account

India bulls Equity Trading Account

India bulls Equity Trading Account is standard Online

trading account from India bulls and along with online

trading it also provides priority telephone access that

gives you direct access to your Relationship Manager

and full access to 'India bulls Equity Analysis'.



Application Trading Terminal (Need Installation)

Power India bulls

Power India bulls trading terminal is the most

advanced new generation trading platform with great

speed. This trading terminal is built in JAVA. Power

India bulls is extremely reach in features including

Live Streaming Quotes, Fast Order Entry and

execution, Tic by Tic Live Charts, Technical Analysis,

Live News and Alerts, Extensive Reports for Real-time

Accounting.

Document Required to open Equity Trading Account

with India bulls

1. One passport size photograph.

2. Proof of bank account

3. Copy of PAN card.

4. Identity proof - copy of passport or PAN card or

voter ID or driving license or ration card.

5. Address proof - copy of driving license or passport

or ration card or voter card or telephone bill or

electricity bill or bank statement.




1. Account opening fees : Rs 1200/- (One time non-

refundable) as below: 250/- Equity Trading Account

opening charge 200/- Demat Account opening charge

750/- Software changes

Advantages of India bulls Equity Trading Account

1. Brokerage is less compare to other online trading

companies.

2. Provide trading terminal 'power bulls', a java based

software. It's very fast in terms of speed and

execution.

Disadvantages of India bulls Equity Trading Account

1. Cannot Apply IPO.

2. Need a HDFC account for instant transfer.



ANALYSIS AND INTERPRETATION

Q1.) Reliance Money is a part of:

Reliance

Capital

Reliance

Telecommunication

Reliance

Energy

Reliance

Industries

150

150

0

20

40

60

80

100

120

140

160

Reliance Capital Reliance Telecommunication Reliance Energy Reliance Industries

Q2.) Reliance Money is owned by:

Anil Dhirubhai Ambani Mukesh Ambani Don’t

Know

150

150

0

20

40

60

80

100

120

140

160

Anil Dhirubhai Ambani Mukesh Ambani Don’t Know



Q3.) Reliance Money deals in

Equity Mutual

Funds

Life/General

Insurance

Credit Cards All

110 70 50 40 40

110

70

50

40 40

0

20

40

60

80

100

120

Equity Mutual Funds Life/General

Insurance

Credit Cards All

Q4.) Are you aware of Investment options available in the market?

Yes No

110 40

Yes

73%

No

27%

Q5.) Which type of investment would you prefer?

Short term Long term



120 30

Short term

80%

Long term

20%

Q6.) What is the level of your risk tolerance for investment?

Low Risk High Risk Moderate

Risk

Very High

Risk

Zero Risk

70 30 10 20 20

Low Risk

47%

High Risk

20%

Moderate

Risk

7%

Very High

Risk

13%

Zero Risk

13%



Q7.) Which Risk/Return pattern do you expect from your investment

fund?

Low risk/Low

return

Low

risk/Moderate

return

Moderate

risk/Moderate

return

High risk/High

return

25 45 50 30

Low risk /Low

return

17%

Low risk/Moderate

return

30%Moderate

risk/Moderate

return

33%

High r isk /High

return

20%

Q8.) In which sector will you prefer to invest your money?

Govt. sector Private sector Both60 30 60

Govt. sector

40%

Private sector

20%

Both

40%

Q9.) In which investment option will you like to put your money?



Securities Fixed Deposits Mutual Funds Insurance

70 110 50 120

70

110

50

120

0

20

40

60

80

100

120

Securities Fixed Deposits Mutual Funds Insurance

Q10.) What is your purpose of Investment?

Children

Education

Retirement

Benefit

Marriage of

Children

Future

contingencies

25 50 30 45

Children

Education17%

Retirement

Benefit

33%Marriage of

Children

20%

Futurecontingencies

30%



Q11.) Your yearly average investment?

< Rs.50,000 Rs.50,000∼ Rs.2 lac Rs.2 lac∼ Rs.5 lac

100 25 25

Rs.50,000

66%

Rs.50,000- Rs.2

lac

17%

Rs.2 lac-Rs.5

lac

17%

Q12.) Rank the investment options on a scale of 1to 5. (5 is highest)

IPO Mutual

Funds

Equity ULIP Fixed

Deposits1 4 3 2 5

5

4

3

2

1

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

R a n k s

Fixed Deposits Mutual Funds Equity ULIP IPO



Q13.) W hat factors you consider while investing your money? (Rank 1

to 5, 1 is lowest)

Tax Benefit Return Benefit Safety Risk

1 4 3 2

1

4

3

2

0

0.5

1

1.5

2

2.5

3

3.5

4

R a n k s

Tax Be ne fit Re turn Be ne fit Safe ty Risk

Q14.) Do you have a Demat Account, if yes specify the company?

Reliance Money Sharekhan India bulls

50 40 60

Reliance Mon

33%

Sharekhan

27%

Indiabulls

40%



Q15.) Which type of company would you prefer to invest in under IPO’s?

Large Cap Mid Cap Small Cap

60 50 40

Reliance

Money

33%

Sharekhan

27%

Indiabulls

40%

Q16.) Which type of investment will you prefer for Mutual Fund?

SIP Lumpsum

110 40

SIP

73%

Lumpsum

27%

Q17.) Which type of fund you prefer to invest in?

Equity Balance Growth50 60 40



Equity

33%

Balance

40%

Growth

27%

Q18. What are the various sources from where you get the information on

investment options?Magazines Financial

Newspapers

Websites Agents/Relation

ship managers

15 45 25 80

0

10

20

30

4050

60

70

80

Magazines Websites

DISCUSSION



To say that online investing has grown extraordinarily fast over the past

couple of years is akin to describing Marilyn Monroe as reasonably

attractive. While it may be easy to trade on the Net, finding the right

online broker takes some doing.

Given that online trading is still at a nascent stage, online brokers are

willing to offer many options -- brokerages that decline as volumes soar,

waiver of account opening charges, access to research reports, and the

facility of transacting in financial instruments through the trading

website. So whom should you choose? The answer depends on a host of

variables -- both qualitative and quantitative.

Qualitative factors are usually a little hard to assess and largely pertain to

expectations of service standards. It helps to talk to acquaintances who

trade online about the website's reliability, ease of fund transfer andtransaction, and the customer service quality of the e-broker, the only

human interface in the entire mechanism. Nonetheless, there are some

key factors that help you compare e-brokers.

Brokerage. It's a recurring cost and can potentially draw down returns.

Every player claims that his brokerage is the lowest or at least promises

to charge the minimum once an investor opens an account and starts

trading. But this promise is contingent on the trading volumes of the

investor.

The brokerage differs from company to company. To give an indicative

figure, ICICIDirect.com charges 0.75 per cent for a quarterly volume of



less than Rs 10 lakh (Rs 1 million) and 0.25 per cent for an amount in

excess of Rs 5 crore (Rs 50 million).

The brokerage for the quarter that follows the opening of an online

trading account is determined by the opening amount of investment,

irrespective of the subsequent investments in that quarter.

Any amount due to either the broker or investor over and above the

brokerage paid is settled every quarter and the opening amount of the

next quarter determines the brokerage that will be paid in that quarter.

While 5paisa.com has the lowest brokerage -- 0.25 per cent -- on

delivery, Angel Broking offers the lowest -- 0.02 per cent -- on intra-day

trading (see A Comparative Look at Online Brokers).

Position traders -- investors who buy and hold securities for the long haul

-- typically opt for low brokerages. Daily traders, who trade in large

volumes, usually settle for what brokers call zero per cent brokerage.

This does not mean that they are not charged brokerage, but alludes to a

fixed brokerage fee irrespective of turnover or up to a certain turnover for

a period of time: higher the investment, lower the brokerage.

For instance, Reliance Money charges Rs 500 for delivery-based volumes

up to Rs 10 lakh (Rs 1 million) for two months. If one trades with

5paisa.com for the same volume, the brokerage amount will be Rs 2,500



(at the rate of 0.25 per cent brokerage). So, at this volume, Reliance

Money scores over 5paisa.com. However, the fixed brokerage of Reliance

Money is higher than 5paisa.com's brokerage for investments less than Rs

2 lakh.

For onliners

• Brokerage is a recurring cost. Higher trading volume slabs attract

lower brokerage. You'll also have to pay an annual maintenance

charge.

•

Some brokers insist on a minimum transaction volume and chargetheir lowest brokerage for it.

• Opt for the same depository and trading body to avoid delays in

settlement of shares and cash.

• Margin trading could attract higher brokerage than regular

transactions.

• Online brokers provide regular updates on market favourites.

• Pick the online broker with the maximum number of collaborating

banks.

• Check out the website's speed and reliability, ease of fund transfer,

and the e-broker's customer service quality.

• The broker's infrastructure should be able to handle large trade

volumes.

Account opening and maintenance costs. In order to trade, an investor

needs to open two accounts with the brokerage firm - a demat account to

keep the shares and a trading account to trade.



If cost is an issue, you may select Almondz, for instance, since it charges

only Rs 400 for opening an account (see A Comparative Look at Online

Brokers), but do not hold a demat account with one company and a

trading account with another since it delays the settlement of shares and

cash.

Another fixed cost is the annual maintenance charge. While some

companies such as Kotak Securities have a high maintenance charge,

Almondz, Religare, Reliance Money, 5paisa.com and India Bulls charge

nothing at all.

Minimum trade requirements. Some online brokers insist on a

minimum transaction volume for which they charge their lowest

brokerage. For instance, ICICIDirect.com has set its minimum transaction

at Rs 500 and charges a brokerage of Rs 25 on it. Geojit FinancialServices has not fixed a minimum transaction amount, but the minimum

brokerage is Rs 20.

Margin trading. This is available in the online domain and involves

paying only a proportion of the trade value upfront. Such trades could

attract higher brokerage than the regular transactions.

Mostly traders, who go for intraday transactions, go for this form of

trading. Investors typically invest for longer periods and margin trading is

not suitable for them as brokers charge huge interest on the value of the

trade that is not paid upfront.



Access to research. Online brokers provide regular updates on market

favourites - stocks to buy, hold or sell - through the Net as well as SMS.

Apart from this, a relationship manager is appointed who works as an

intermediary between the investor and the broker, and plays the helpful

tipper.

Investors need to remember amidst the daily onslaught of tips that too

much trading does not necessarily translate into big bucks.

Tie-ups with banks. To trade with a broking company, you need to have

an account with one of its collaborating banks. Typically, broking firms

have fewer collaborations with public sector banks. Almondz scores

above others here since it has tie-ups with numerous private sector banks

and 19 public sector ones.

Apart from the charges mentioned above, an investor is required to paythe security transaction tax and service tax (including education cess of 3



per cent), which amount, respectively, to 0.125 per cent of the transaction

value and 12.36 per cent of the brokerage amount. These also raise the

cost of the trade.

Buoyed by a tremendous consumer response and with banking on its

huge roll-out plan, ADA Group's brokerage and distribution arm

Reliance Money expects to break-even by the end of the current

fiscal.



CONCLUSION AND RECOMMENDATION

CONCLUSION

Investing in various types of assets is an interesting activity that attracts

people from all walks of life irrespective of their occupation, economic

status, education and family background. When a person has more money

than he requires for current consumption, he would be coined as a

potential investor. The problem of surplus gives rise to the question of

where to invest.

For an investor the main investment objectives are increasing the rate of

return & reducing the risk other objectives like safety, liquidity & hedge

against inflation can be considered as subsidiary objectives.

While investing in stock market the first step is to assess a company from

a qualitative standpoint and determining whether you should invest in it

are as important as looking at sales and earnings. This strategy may be

one of the simplest, but it is also one of the most effective ways to

evaluate a potential investment.

Moreover growth investors are concerned with growth. The guiding

principle of growth investing is to look for companies that keep

reinvesting into themselves to produce new products and technology.

Even though the stocks might be expensive in the present, growth

investors believe that expanding top and bottom lines will ensure an

investment pays off in the long run.



Lastly the Technical analysis is unlike any other stock picking strategy--it

has its own set of concepts, and it relies on a completely different set

of criteria than any strategy employing fundamental analysis.

However, regardless of its analytical approach, mastering technical

analysis requires discipline and savvy, just like any other strategy.

The Indian Capital Market constitutes of various investment options for

retail investors. Recently there has been a change in the investment

patterns of individual investors. The investors have started of taking risk

in the capital markets. They are after the higher returns on their

investments and thus they look towards broking firms for their

investments.

My summer training at Reliance Money was an eye-openers in to the

working of a Broking firm and what all is online trading about. I got an

insight into the need for investment management and the benefits of

planned investment.



RECOMMENDATION

The company is a leading financial company recently came up

with online share trading products to become number one online

share trading company, company can reach by following

measures:-

• There is potential in the capital market segment.

• People are interested in equity trading.

• Mostly potential lies in employees of BPO and IT sector.

• Due to inaccessible to computer and internet, some people

were reluctant.

• Thrust on promotional activities to make aware of the people

about online trading.

• Flexibility in Brokerage.

• Free demo about the product at the BPO and IT offices.

• Propagating the strict guidelines of SEBI among people.

We suggest following measures, which Reliance Money could take so as

to take on heavy competition from Sharekhan, Kotak Securities,

Indiabulls and 5 Paisa

1. To identify regions where promotions are required. Reliance Money

still lacks visibility.



2. Try to reduce cost, so that benefits can be passed on to customers.

India being a price sensitive market, people at times go for monetary

benefits rather than for long term non- monetary benefits.

3. If charges can’t be reduced because of costs involved, make the

services customized, so that services are provided to only those

customers who are willing to pay the price for services they are

getting and let the other customers enjoy costs benefits without getting

services.

4. Concept of margin funding should be introduced, as more and more

people are asking for it.



BIBLIOGRAPHY

BOOKS:

Bhalla, V K. Investment management: Security Analysis and

Portfolio Management, 8th ed; New Delhi, S. Chand, 2001.

Fischer, Donald E. and Jordan, Ronald J. Security Analysis and

Portfolio Management. 6 th ed; New Delhi, Prentic Hall of India,

1995.

INTERNET LINKS:-

www.investsmartonline.com

www.indiainfoline.com

www.sharekhan.com

www.indiabulls.com

www.icicidirect.com

www.kotaksecurities.com

www.nseindia.com

www.bseindia.com

www.sebi.com

www.econimictimes.com

www.businessstandard.com

SEARCH ENGINE USED:-

http://www.google.com

http://www.yahoo.com

http://www.indiainfoline.com/

http://www.sharekhan.com/

http://www.indiabulls.com/

http://www.icicidirect.com/

http://www.kotaksecurities.com/

http://www.nseindia.com/

http://www.bseindia.com/

http://www.sebi.com/

http://www.econimictimes.com/

http://www.businessstandard.com/


http://www.yahoo.com/

http://www.indiainfoline.com/

http://www.sharekhan.com/

http://www.indiabulls.com/

http://www.icicidirect.com/

http://www.kotaksecurities.com/

http://www.nseindia.com/

http://www.bseindia.com/

http://www.sebi.com/

http://www.econimictimes.com/

http://www.businessstandard.com/


http://www.yahoo.com/



ANNEXURE

Name

Age:

Gender:

Profession:

Address:

Q1.) Reliance Money is a part of:A1.) Reliance Capital Reliance Telecommunication

Reliance Energy Reliance Industries

Q2.) Reliance Money is owned by:

A2.) Anil Dhirubhai Ambani Mukesh Ambani Don’t Know

Q3.) Reliance Money deals in

A3.) Equity Mutual Funds Life/General Insurance Credit

Cards All

Q4.) Are you aware of Investment options available in the market?

A4.) Yes No

Q5.) Which type of investment would you prefer?

A5.) Short term Long term

Q6.) What is the level of your risk tolerance for investment?



A6.) Low Risk High Risk Moderate Risk Very High

Risk Zero Risk

Q7.) Which Risk/Return pattern do you expect from your investment

fund?

A7.) Low risk/Low return Low risk/Moderate return

Moderate risk/Moderate return High risk/High return

Q8.) In which sector will you prefer to invest your money?

A8.) Govt. sector Private sector Both Other

Q9.) In which investment option will you like to put your money?

A9.) Securities Fixed Deposits Mutual Funds Insurance

Others

Q10.) What is your purpose of Invesatment?

A10.) Children Education Retirement Benefit

Marriage of Children Future contingencies

Q11.) Your yearly average investment?

A11.) < Rs.50,000 Rs.50,000∼ Rs.2 lac Rs.2 lac∼ Rs.5 lac

>Rs.5 lac

Q12.) Rank the investment options on a scale of 1to 5.

A12.) IPO Mutual Funds Equity ULIP Fixed

Deposits

Q13.) W hat factors you consider while investing your money?



A13.) Tax Benefit Return Benefit Safety Risk

Q14.) Do you have a Demat Account, if yes specify the company?

A14.) Reliance Money Sharekhan Indiabulls

(if other, please specify).

Q15.) Which type of company would you prefer to invest in under IPO’s?

A15.) Large Cap Mid Cap Small Cap

Q16.) Which type of investment will you prefer for Mutual Fund?

A16.) SIP Lumpsum

Q17.) Which type of fund you prefer to invest in?

A17.) Equity Balance Growth

Reliance Mutual Fund Final

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