Investment Analysis of the Clients of Reliance Money

8/6/2019 Investment Analysis of the Clients of Reliance Money

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A STUDY OF RELIANCE MONEYAND ITS

CLIENTS BEHAVIOR

A report

submitted in partial fulfilment of the requirements for

the award of the degree of

POST GRADUATE DIPLOMA IN

MANAGEMENT (IB)

BY

ATUL KUMAR

(PGDM-IB/1094015/09)

INDIAN INSTITUTE OF TOURISM AND TRAVEL

MANAGEMENT

GOVINDPURI, GWALIOR-474011(MP)


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DECLARATION

I , Atul kumar , student ofPGDM (I.B.) of Indian Institute of Tourism and Travel

Management, Gwalior, hereby declare that the internship project report entitled A study of

Reliance money and its clients behaviour is submitted by me in the line ofpartial

fulfilment of the course objectives forPGDM (I.B.).

I assure that this project report is the result of my own efforts and original.

Date: Atul kumar

Place: Gwalior PGDM (I.B.)


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Certificate

This is to certify that Mr. Atul Kumar, a student ofPGDM-(IB)(2009-2011), Indian Institute

Of Tourism & Travel Management, Gwalior has completed his Summer Training in Reliance

Money, Gwalior.

He was on training for a period 0f 6 weeks, starting from May 17 th to July 2nd and prepared

this report titled A study of Reliance Money and its clients behaviour under my guidance.

This Summer Internship report has the requisite standard for the partial fulfilment of the Post

Graduate Degree in International Business. To the best of our knowledge, no part of this report

has been reproduced from any other report and the contents are based on original research.

Prof. Nimit Chowdhary

(Faculty guide)


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Acknowledgement

The role of any mentor is quite crucial for the completion of any project. The trainee is always

benefitted by the experience of the mentor which he /she shares with him. In that sense I am

really fortunate to get the guidance of two guides- Faculty guide & Industry guide. I extend

my heartiest gratitude to honourable faculty of International Business , Prof. Nimit

Chowdhary and Industry guide Mr. Mahendra Parmar for their kind support and blessings

without which this report could not be completed.


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Executive summary

India is still at a nascent stage as far as penetration of Equity culture to its grass root level is

concerned. Equity culture means a psychological inclination towards investment and therefore

towards risk. Factually this is dismally poor barring a few exceptions in the form of a few

metros and tier 1 cities. People still believe in Savings more than investments. This belief

counts on its own merit. This merit was well proved during the great recession of 2008 when

majority of the world economies were shaky and on the verge of financial meltdown. Small

savings by each Indian, pooled together, served as a strong national shield against global

forces.

Keeping in mind the above discussion it became very tempting for me as a researcher to

understand the investment pattern of the clients of Reliance money.

This project accompanied by a small survey is aimed at analysing the quantum and

pattern of yearly investment of such clients in share market. A sample of 70 such clients has

been taken.


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Table of content

S.No. Topic Page No.1. Brief profile of Reliance Money 6-11

2. Reliance money in detail 12-22

3. Details of 6 weeks training 22

4. Statement of objectives 23

5. Sampling Design 23

6. Data collection 24

7. Questionnaire and response 24-29

8. Findings and conclusions 30


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1. Brief profile of reliance money

1.1 About R-ADAG:

The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector business houses on

all major financial parameters, with a market capitalisation of Rs.325,000 crores (US$ 81 billion), net

assets in excess of Rs.115,000 crores (US$ 29 billion), and net worth to the tune of Rs.55,000 crores (US$

14 billion)

Across different companies, the group has a customer base of over 100 million, the largest in India, and a

shareholder base of over 12 million, among the largest in the world.

Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every

single day. It has a business presence that extends to over 20000 towns and 4.5 lakhs villages in India, and

5 continents across the world.

The interests of the Group range from communications (Reliance Communications) and financial services

(Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy),

infrastructure and entertainment

.


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Group hilosophy Vision

---To buil a global enterprise for all our stakehol er, and

---A great future for our country,

---To gi e millions of young Indians the powerto shape their

destiny

---The means to realize their full potential

Values:

y Shareholder Interesty People Carey Consumer Focusy Excellence in Executiony Team Worky Proacti e Innovationy Leadership by Empowermenty SocialResponsibilityy Respect forCompetition

1.2 Reliance Capital Limited:

Reliance Capitalis one of Indias leading and fastest growing private sector financial services companies,

and ranks among the top 3 private sector financial services and banking companies, in terms of net worth.

Reliance Capital has interests in asset management and mutual funds, life and generalinsurance, private

equity and proprietary investments, stock broking and other activities in financial services.


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Reliance Capital's vision is that:

By 2012, it will be a company that is known as:

"The largest, most profitable, innovative, and most trusted financial services company in India and in the

emerging markets".

In doing so, the company expects to reach the following targets by 2012:

1.

50 million customers.

2. 75,000 employees

3. A profit after tax of Rs. 5,000 crore for that financial year.

4. A valuation of Rs. 100,000 crore for the company and its subsidiary businesses.

In achieving this vision, the company will be both customer-centric and innovation-driven.

1.3 Reliance Money

Reliance Money is the one of the leading brokerage and distributor of financial products in India. Reliance

Money is a comprehensive financial services and solutions provider, providing customers with access to

equities, equity options and commodities futures, wealth management, portfolio management services,

mutual funds, IPOs, life and general insurance products, offshore investments, investment banking, credit

cards, money transfer, currency exchange and gold coins.

Reliance Money has five million customers through its pan India presence with over 5,000 outlets.


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1.4 Reliance securities limited:

Reliance Securities Limited is a Reliance Capital company and part of the Reliance Anil

Dhirubhai Ambani Group. Reliance Money is a brand owned by Reliance Capital Limited.

Reliance Securities with the permission of Reliance Capital Limited uses the Reliance

Money brand to market its various services.

Reliance Securities endeavours 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 & IPO.


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Brief organisational structure of R-money


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2.) Reliance Money in detail:

2.1 Types of trading platforms:

a.) Easy trade:

All the Reliance Money Trading customers can avail this facility.

# Simple HTML Order Entry Form

# View Market Depth and your Limits statement on the same screen

# Place order in 3 easy steps

# Access your Investment portfolio

# Access Trading + Investment products such as IPO and Mutual Funds etc.

# Available to all Reliance Securities trading customers.

# Common RMS (Risk Management System)

# Work efficiently with slow internet connectivity

b.) Insta trade:

Its a browser based software and requires Java application for streaming data forscripts in market watch Features

Create multiple market watch, with 30 scrips in each market watch

Key Board shortcuts available - F1, F2, F6 (+), (-) "Insert" and "Delete"

Trade data concurrency i.e. orders / trades placed from Easy trade, Insta trade,franchisee, kiosk or call center can be viewed here.

All trade reports and history reports available.


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C.) Fast trade:

Reliance Securities limited provide its online share trading clients with a browser-based

platform known as fast trade. The Online Trading platform requires basic HTML technology to

operate.

y Can create up to 5 market watches per client with 25 scrips in each of them.

y Add NSE, BSE, FONSE and ETFs on the same market watch.

y View prices place orders on the same screen.

y Key Board shortcuts available - F1, F2, F6 (+), (-).

y Look and Feel + Reports - same as in Insta Trade

y Manual Refresh is required

y Refresh when you want price updates.

y No JVM required. No port opening required.

y Trade data concurrency i.e. orders / trades placed from easy trade, Insta trade,franchisee, kiosk or call centre can be viewed here.


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d.) Super Trade:

Super Trade is a power-packed solution for all your stock trading needs. It has been

meticulously designed to provide you with a superior trading experience- fast, reliable and

feature-rich.

Features:-

y Fully Customi able Display: - Manage your display screen the way you want with

multiple market watches and multiple charts.

y Dynamic Charts with Indicators: - Get Dynamic Charting facility with host of technical

indicators that provides you with real time assistance on technical analysis.

y EOD Charts: - Get EOD charts for long term analysis with all technical indicators. Live

order status with real time order tracking.

y Real time position updates: - All your positions are updated automatically and instantly

with real time profit/loss updates.

y Derivative chain: - This feature provides you with a list of all derivative contracts

available for the selected security.

y To view derivative prices of a security just right click on the symbol and click on

derivative chain.

y Enhanced Market Watch: - User can create multiple market watch, with 200 scripts-

each. You can add NSE, BSE, FONSE and ETFs on the same market watch.

y Hot Keys: - Key Board shortcuts - E.g. F1, F2, F6 (+), (-) "Insert" and "Delete", etc are

available for faster order punching.

y

Consolidated Trade-data View: - Trade data i.e. orders / trades placed from Easy trade,

Insta trade, Fast trade, Sub broker or call centre can be viewed concurrently.

y After Market Orders: - Now place orders even after Market hours i.e. After Market

Orders. Download the new exe by clicking on the link below. Place an AMO Buy/Sell


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order by changing the Order type from 'NORMAL' to 'AMO' in the Buy/Sell Orderform.

e.) Insta plus:

Insta Plus is a web browser based trading system for those who are very frequent traders

& who seek to take benefit out of short-term price movement. This gives you real time market

data for BSE as well as NSE similar to what you get in any broker terminal.

2.2 Brokerage Structure:

a.) Percentage brokerage scheme:

Delivery(NSE,BSE,

Cash segment)

Margin(NSE,BSE,

Cash , intraday and futures)

Options

MonthlyTurnover

Brokerage MonthlyTurnover

Brokerage Monthlypremiumturnover

Brokerag-e per lot(in Rs.)

>2.5 crore 0.15% >=50 crore 0.015% >=25 lacs 50

50 lacs to 2.5

crore

0.20% 25cr to 50 cr 0.020% 10 lacs to

25 lacs

60

25lacs to 50lacs

0.30% 10 cr to 25 cr 0.025% 5 lacs to10 lacs

70

10 lacs to 25lacs

0.40% 5 cr to 10 cr 0.030% 2 lacs to 5lacs

80

Less than 10lacs

0.45% 2cr to 5 cr 0.040% < than 2lacs

100


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b.) Limit card scheme:

Card name Card value inRs.*

Deliveryturnover(lacs)

Margin turnover(lacs)

Validity (days)

PR-500 500 2 2 365

Bi-monthly 1000 10 90 60

Half yearly 2500 30 270 180

Annual 5000 70 630 365

* Service tax will be levied separately

2.3 Types of products offered by them:

a.) Online trading:

y Reliance Securities Limited as a SEBI registered Trading Member of NSE and

BSE offers Internet trading on the url.www.reliancemoney.com. To trade online

the customer is provided with an user id, password and also a security token

which flashes a dynamic password number. This security token displays a new 6

digit number every 36 seconds.

y To facilitate trading the following frontend screens have been made available:

o Easy Trade

o Insta Trade

o Fast Trade

o Super Trade

o

Insta Plus

y The trading system is totally secured and is SSL (Secure Socket Layer) enabled.

y All interactions on the trading system are encrypted using industry standardencryption algorithms.


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b.) Call and trade:

y Apart from Internet trading, the customers are also provided with the option of trading

through the Call & Trade facility. When the customer calls the Call & Trade number to

transact, he needs to authenticate his identity by providing the user id, and the dynamic

password number from his security token. Password is not required for Call & Trade

transactions.

y The Call and Trade telephone number is: 022 39886000

c.) Mobile trading:

With access to Rmoney.mobi on the mobile you can now place and track your order in BSE

and NSE on real time basis. This facility is available to Reliance Securities Trading account

holders across all mobile platforms independent of device, operator and the underlying carrier

technology.

Along with Trading on mobile you can also keep a track of

y Intraday Positions / Exposures

y Your Reliance Securities Trading portfolio

y Latest market news

y Stock quotes and much more!


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Key Features:

y Square off order You can select any Open Position from the report and place a square

off order.

y News Equities, Derivatives, Mutual Funds, IPOs.

y Market Statistics Volume Toppers, Gainers and Losers, FIIs activity, Market

summary and Global indices.

y Market Commentary Equities.

y Mutual funds Updated information on NFOs, Top performing schemes/ funds, and

calculator for your SIP calculations.

y IPO - Forthcoming IPOs, Top performing IPOs and IPO open.

y Quotes Get the days high and low, last traded price of your favourite stock.

y Reports* Ledger report for Equity trading, Order book, Demat balance, Trade book

and Limit card.

y Branch Locator Get the nearest Reliance Securities Limited branch addresses.

d.) Charting:

An advanced automated Technical charting tool capable of recogni ing patterns in the price

charts of stocks and indices. These chart patterns are known to indicate trading opportunities

for the Traders and Investors.


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A Trader can

Review the stocks. For example, you can get a list of the most recent Technical Events and

Patterns for the stocks in your portfolio.

Find new investment opportunities. For example, you can search for all stocks, on the BSE &

NSE, that have formed a bullish/bearish pattern.

Review the historical behaviour. For example, you can get a list of all the patterns for a specific

security for the last 3 years and then use those to analyse if you should invest based on the

most recent pattern.


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e.) NRI services:

y Non Resident Indian (NRI) clients can place orders using any of our online trading

platforms - Easy Trade, Insta trade & Fast Trade.

y NRI clients can place orders in Delivery segment for the stocks included in the NRI

basket available on the Trading portal. NRIs can carry out their securities transactions

under the provisions of the Reserve Bank of Indias (RBI) guidelines for NRI Portfolio

Investment Scheme (PIS)

y Intraday trading is not allowed to NRI clients

Charges

y The brokerage charges for NRI customers is 0.5% and DP AMC charges are Rs.1000/-.

For further information, please contact your nearest branch.

f.) Sub broker:

Apart from Internet trading and Call & Trade, our customers are also provided with the option

of trading through our SEBI registered Sub brokers. However, before the customers trading

account is enabled for trading through a particular Sub broker, he needs to sign a Tripartite

agreement with the Sub broker as well as with us.ie. Reliance Securities Limited.


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f.) After market orders:

y Our customers can also place After Market Orders (AMO) on NSE & BSE from 7:30

PM onwards on a Trading till 8:00 AM on the next Trading day. The accumulated

orders will be released to the Exchange for execution after the market opens on the

next trading session. Market orders cannot be placed in AMO. F&O orders are currently

not accepted by us under AMO.

y AMO provides the convenience to the customer to place limit orders without having to

wait for the market to open.

g.) Portfolio management services:

Reliance Securities Limited is a SEBI Registered Portfolio Manager. Reliance Securities

endeavours that every portfolio created is reflective of the values on which Reliance Securities

has been built - a commitment towards transparency and a strong research - driven investment

process.

2.4 Documents required to open a D-mat account:

y Pan card copy

y Address proof

y 2 photograph ( 1 piece extra for trading in commodities)

y

Cancelled chequey A cheque of Rs.750

y Bank statement- A proof of income

2.5 R-Money business model in Gwalior :

This brokerage house conducts its busines through a network of franchisee dealers


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and its sales executives. Currently their franchisees are located in

# jayendraganj-2

# ha ira

# Baada

# Murar

# Bhind

# Murena

3.) Details of 6 weeks training:

No. of weeks Task assigned/lesson learnt

1st week Basics of trading, futures and options.

2nd and 3rd week Moti mahal for direct sell and marketing ofD-mat accounts

4th week Thatipore for direct selling and marketingof D-mat accounts

5th week Punjab & Sind bank jayendraganj forconvincing bank employees and customers

6th week Making new customers through the

franchisees of R-money at Ha ira,jayendraganj baada.


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In the mean time a small survey was also conducted with the following objective:

4.) Statement of objective:

a.) To estimate the average annual investment amount of the clients of reliancemoney

b.) To understand the opinion of clients about their broker( R-money)

5.) Sampling design:

5.1 Representation Basis:

Non probability sampling

5.2 Sampling unit:

Reliance money, Gwalior

5.3 Si e of sample:

The sample si e is 70

5.4 Constraints: There were 2 major constraints-

a.) Time constraint

b.) Budgetary constraint


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6.) Data collection:6.1 Data Type: Primary data

6.2 Type of survey: Sample survey

6.3 Method deployed: Structured personal interview

through the use of well defined schedule consisting of 8 questions .

7.) Questionnaire

a.) What is more important to you?

i.) Savings ii) investment

51, 73%

19, 27%

Savings

investment


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b.) What do you think is the best advantage of R - Money?

i) Brokerage structure

ii)

Return that they generateiii) Services

c.) How do you find their trading platforms?

i) User friendly

ii) Not user friendly

20, 29

35, 50

15, 21

Brokerage

Return

service

45, 64

25, 36

User friendly

Notuser friendly


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d.) What can you say about their sales personnel?

i) delivered what they promised

ii) over promise for service

e.) How do you find their trading tips?

i) Useful

ii) Not useful

iii) cant say

30, 43

40, 57

Delivered whatthey

pr

mised

Over pr

mise


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f.) Do you have multiple D-mat accounts?

i) Yes

ii) no

29, 42%

22, 31%

19, 27%

Usefull

Notusefull

can'tsay

28, 40%

42, 60%

yes

no


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g.) which modes of investment do you choose?

i) Traditional call

ii) Intraday call

iii) Positional call

41, 59

12, 17

17, 24

Traditional

Intraday

Positional


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h.) what amount on an average do you invest every Year?

i) Less than Rs.50,000

ii)

Rs.50,000-1,00,000iii) More than 1,00,000

32, 46

26, 37

12, 17

Lesstha

Rs.50,000

Rs.50,000 -Rs.1,00,000

Moretha

Rs.1,00,000


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8.) Findings:

a.) 50% of the people are happy with the return given by their brokers.

b.) More than 50% of the investors believe that for them savings is more important.

c.) More than 50% of the investors find the trading platform to be user friendly.

d.) More than 50% of the investors believe in traditional mode of investment.

e.) 46% of the investors invest less than Rs. 50,000 every year.

9.) Conclusion:

a.) Overall clients of Reliance Money are satisfied with their brokerage firm.

b.) Majority of investors believes in savings and still saving constitute a major part of ones

income

c.) Among those who invest in share market traditional mode of investment is most popular.


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