Nishant Project Report

8/8/2019 Nishant Project Report

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Submitted to: Presented by:

Mr. Nikunj Sharma (Assignment Owner) Nishant Fartiyal

Mr. Shibin Sebastian (Project Owner) SAP ID: 70103047

1

Comparative Analysis of

Debt based Mutual Fundswith a focus on

Corporate & SMEs.


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ACKNOWLEDGEMENT

This report is a synergistic product of many minds.

I am grateful for the inspiration and wisdom of many people for their insights and

encouragement. I cannot possibly mention the names of all those people who have

enriched and improved my thinking through their conversations. But without the

names of some people this project report would have not been possible. This report

has been analyzed and sharpened by their intellectual prowess.

I sincerely express my thanks and gratitude to Mr. Shibin Sebastian (Branch

Manager Reliance Capital Asset Management Limited Mysore) for allowing me towork on this challenging project.

I am also grateful to Mr. Leo Amal Rosario and Mr. Aravinda Srinivasa

(Relationship Manager Reliance Capital Asset Management Limited Mysore) - for

their valuable insights in the field of sales at Reliance Capital Asset Management

Limited Mysore. I am thankful to all of them for their patient help, valuable

suggestions, encouragement and guidance at every stage of my work, which

enabled me to complete the final report.

Lastly, I wish to express my gratitude to all my colleagues for their constantencouragement and support.

2


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CONTENTS

RELIANCE LIQUID FUND VS. BANK FIXED DEPOSIT 16

A COMPARATIVE ANALYSIS OF DIFFERENT FLOATING

RATE FUNDS 17

TAX STRUCTURE 18

RESEARCH FINDINGS 19

SEGMENTATION OF MYSORE MARKET 20

LIMITATIONS 21

RECOMMENDATIONS 22

REFERENCES 23

3


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OBJECTIVES

To accurately segment the market so that

customers are targeted with products those are

relevant to them.

To find out the awareness level of investors forvarious schemes offered by RMF.

To determine the potential market size.

To formulate a feasible strategy to tap the market

and ensure that it gets implemented effectively.

1st mover advantage in this category gets utilized

and work towards market leadership in future getsstarted.


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RESEARCH METHODOLOGY

This report is based on primary as well secondary data,

however primary data collection was given more

importance.

Research methodology was adopted so that we get the

required vital information needed to formulate future

strategies to maximize our business.

I followed the concept of Simple Cluster Sampling

wherein we choose a cluster out of all available clusters

and access it to get the required information. Most of

the primary data was collected by making visits to

various target customers in the chosen cluster. Lots of

interaction with various prospective clients, our channelpartners and my Project Owner Mr. Shibin Sebastian

was what helped me in accumulating this valuable piece

of information which I have included in my report

under the heading called Research Findings.

Apart from the field work I also gathered some

secondary data using internet, magazines and variouspublished journals.

This research methodology has not only helped me in

collecting vital information but also helped me in

building rapport with my clients and prospects.


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REASONS BEHIND CHOOSING THIS PROJECT

Mysore is soon stealing the gleam away from Bangalore.

Mysore, Karnatakas second largest city, is fast emerging as the IT

destination after Bangalore. Mysore is emerging as Bangalores twin

city. New industrial hubs have developed in the city and real estate

transactions are on the rise.

The city currently boasts of various IT and non-IT campuses

like Software Paradigms Pvt Ltd., Excel-Soft Technologies Pvt. Ltd,

SDD Global Solutions Pvt Ltd., iRobot, Infomaze Technologies and

Solutions Pvt Ltd., Meritor, Automotive Axles Ltd. In addition to this,

Mysore houses many big companies like Sagas Autotec Private Ltd.,

Mysore Paper mills, Mysore Paints and Varnish Ltd. to name a few.

AUM of RMF Mysore being majorly built of Equity based funds.

Debt penetration in Mysore is pretty less compared to Equity. We

therefore aim to increase our debt AUM in Mysore. Recently we have

added a few institutional clients to us but we still have lot more to

cover. Institutional investments in debt would help us grow our AUM at


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an increased pace and simultaneously we can also focus on retail

investments in the debt category.

Untapped potential for debt funds in Mysore market is huge.

ABSTRACT

The Indian mutual funds industry is witnessing a rapid growth as a

result of infrastructural development, increase in personal financial

assets, and rise in foreign participation With the growing risk appetite,rising income, and increasing awareness, mutual funds in India are

becoming a preferred investment option compared to other investment

vehicles like Fixed Deposits (FDs) and postal savings that are

considered safe but give comparatively low returns, according to

"Indian Mutual Fund Industry". The report focuses on contribution

towards debt category mainly by corporate and other SMEs.

Alarmed by stocks that seem to plunge one day and skyrocket the next

investing gurus suggest debt as the sensible place to park your money

whether stocks are sliding or not. Most of the corporate and otherinstitutional investors seem to have understood this really well and that

is the main reason for debt based mutual funds contributing more than

73% of the total Average Assets under Management (AUM) of the

Indian Mutual Fund Industry. However it is really important to note that

its not the entire debt category that is always behind this huge corpus

size and recently the major contribution has come from ultra short term


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debt funds, which have registered huge inflows from institutional

investors.

Report mainly focuses on the debt funds category which is broadly

divided into 3 categories, viz., debt/income schemes, liquid/money

market schemes, gilt schemes. Debt schemes offer you capital

protection as well as steady income; they come with good returns

ranging from 10-13%, however with the certain amount of risk.

Debt funds deliver you steady returns though the returns may not be as

attractive as equities. However, you get a sense of assurance for returns.

Also they offer you greater tax efficiency as compared to traditional

ways of investing that is bank fixed deposits and post office schemes.

Liquid/money market schemes are basically for the short term

investment, to park your funds with the money market instruments call

money, commercial papers, (CPs). The returns range from 5-7%. Gilt

schemes invest in government securities, the returns range normally

between 7- 8%.

Increased demand for sophisticated Treasury Management is majorly

driving the corporate to park their idle money with various asset

management companies. Moreover with a rise in corporate earnings and

maturing capital markets lots of inflows are expected in the near future.

Institutional segment has also started witnessing the emergence of a

new category of SMEs seeking advice on managing their funds.

Tier 2 city of Mysore is stealing the gleam away from Bangalore and

presence of more than 15 AMCs in itself is evidence big enough to

prove the citys potential. Report also tells us about the concept of

weekend parking which has significantly attracted the attention of a no.

of institutional investors. Inspite of being little conservative,

institutional investors here in Mysore are gradually opening up to

investments in liquid and liquid plus category of mutual funds. Report

tells us about the classification of debt based mutual funds in Reliance

AMC. Comparison of Liquid funds with Bank fixed deposits is also a

part of the report.Report also mentions the investors perception about debt based mutual

funds. Considering todays competitive scenario I have also tried to put

a comparison of three floating rate fund schemes offered by various

AMCs. Research Findings and recommendations form the conclusion

of the report.


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INTRODUCTION

What are Debt Mutual Funds?

Debt funds are funds that invest in debt instruments, which include

government securities, corporate bonds and money market instruments.

These are called debt instruments because the issuers have borrowed

money from the lender (investors) by issuing these securities.

These debts, mainly known as bonds, are income generating properties i.e. investors receive regular interest payments on them.

These payments could be monthly, semi-annually or annually.

Types of Debt Mutual Funds:-

Ideally debt funds are of three main types:

Income/bond schemes

They invest in long- and medium-term instruments like corporate

bonds, debentures, fixed deposits. These are designed for corporate and

small businessmen to use for cash or treasury management. Theseschemes allow them to park short-term surplus funds in the money

market, so that they earn some return before they find end uses. They

invest in money market instruments like call money, inter-corporate

deposits and commercial paper. Their returns range from 8 to 12 per

cent, depending on money market conditions. Even salaried individuals

can use them in the short term, since they offer better returns than


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savings accounts. Risk comes from money market volatility - which

also creates the possibility of gain due to a sudden increase in rates.

Also risk arises from the quality of paper held and from unjustifiably

large exposures to particular companies or sectors. Income schemes

usually offer the best returns among those investing in various forms of

debt. However, these superior returns do come at the cost of slightly

higher risk.

In addition to the standard income and growth options, several schemesare now offering a third choice: dividend reinvestment. Here, tax-free

dividends due to you, which you might otherwise have spent, are

reinvested in the fund, getting you more units. This is a more efficient

process of capital building.

Liquid/money market schemes

They invest in instruments having short-term period like treasury bills,

commercial paper, call money and repos. These are designed for

corporate and small businessmen to use for cash or treasurymanagement. These schemes allow them to park short-term surplus

funds in the money market, so that they earn some return before they

find end uses. They invest in money market instruments like call

money, inter-corporate deposits and commercial paper. Their returns

range from 8 to 11 per cent, depending on money market conditions.

Even salaried individuals can use them in the short term, since they

offer better returns than savings accounts. Some funds even offer

cheque-writing facilities. Risk comes from money market volatility -

which also creates the possibility of gain due to a sudden increase in

rates.

Gilt Funds

Gilt is a British term and initially referred to the debt securities issued

by Bank of England that had a guilt (guild that means painted with

gold) edge. However, now Gilt funds refer to funds that invest in

sovereign papers issued by the central government and the state

governments of any country. The maturity period in these funds are

medium- and long-term, depending upon an investors goals.

Government securities, or Gilts, are the most liquid debt instruments.They offer excellent investment opportunities for fund managers. Also,

the yield gap between AAA-rated debt (the highest safety rating) and

gilts has fallen from over 1 percentage point over the past three to seven

years to 0.5 percentage points during the past year. Gilt schemes are for

those with the least risk-tolerance and a willingness to take a small cut

in returns, relative to income schemes. In fact, it's possible for a pure


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gilt scheme to outperform a regular income scheme. In the past six

months, many mutual funds have launched gilt schemes. The returns

range from 9 to 12 per cent. Most of these are open-ended, no-load

funds - the best, since they ensure liquidity.

There are some other type of debt funds and include:

Monthly income plans (MIPs)Here every month a fixed amount is invested of which approximately

20% is allocated to equity and the remaining to debt. It gets benefit of

both equity and debt market. These scheme ranks slightly high on the

risk-return matrix when compared with other debt schemes.

A fixed maturity plan (FMP)

It is a close-ended scheme, and has an exit load, if redeemed, before the

maturity period. Such schemes can have a maturity period of three

months to three years. It selects an instrument, which corresponds withits maturity period. For instance, if the maturity of a scheme is one year,

then the scheme will invest in instruments having one-year maturity. As

the instrument will have a fixed interest rate payable on quarterly/half-

yearly basis, the NAV will be on interest accrual basis.

CLASSIFICATION OF OUR DEBT SCHEMES

Debt schemes at Reliance Capital Asset Management Limited are

classified into 3 broad categories which are as follows:-

1. Reliance Liquid Schemes

2. Reliance Liquid Plus Schemes

3. Reliance Duration Schemes

Each of these categories has various schemes under them. Let us see

the classification with the help of diagrams.


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Debt Schemes

Reliance LiquidSchemes

Reliance LiquidPlus Schemes

RelianceDuration

Schemes


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CONCEPT OF WEEKEND PARKING

As the name suggests the weekend parking concept is parking ones

money with us over the weekend.

Investor may invest on Friday before cut-off time

Cut off time for high value Cheque- 10.30 am

Cut-off time for transfer Cheque - 12 noon

He may submit the redemption request before 3 pm on Friday

Money is deposited in his//her bank account on Monday (On NAV of

Sunday).

1. Reliance Medium

Term Fund

2. Reliance Money

Manager Fund

1. Reliance Floating Rate

Fund

2. Reliance Liquidity Fund

3. Reliance Liquid Fund

(Treasury Plan)4. Reliance Liquid Fund

(Cash Plan)

1.Reliance Regular Savings

Fund - Debt

2. Reliance Short Term

Fund

3. Reliance Gilt SecuritiesFund

4. Reliance Income Fund


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Idle funds remain invested for 3 days.

This concept has gained significant attention as it helps us to lure

prospective customers to park their money with us for the weekend.

The fact that idle funds remain invested for 3 days really appeals to

them and also post tax returns (in case of dividend option) are far

better than what they get from bank fixed deposits. Moreover theinvestment is in Liquid Funds category only so the investors need not

worry very much about the safety of their principal amount.

Following funds are used for weekend parking...

Reliance Floating Rate Fund > Minimum Amt Rs 25000

Reliance Liquid Fund > Minimum Amt Rs 5000

Reliance Liquidity Fund > Minimum Amt Rs 5 Crs

DYNAMICS OF DEBT MUTUAL FUNDS

From an inflation-adjusted perspective, debt mutual funds compare very

favorably to fixed deposits. Also from a post-tax viewpoint, mutual

fund units score over bank fixed deposits, especially for institutional

investors who are mostly in the highest tax bracket.

Debt funds are distinguished by the type, credit quality and length of

maturity of the bonds in which they invest. Those emphasizing short-term securities and higher credit quality tend to be more conservative

than the ones offering longer maturities and lower credit quality. More

conservative funds generally hold out the prospect of reasonable returns

and low-risk exposure, while aggressive funds seek to offer higher

returns in return for accepting higher risk exposure.


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Hence, investment decisions should be in line with the investment

objectives/time horizon and risk appetite.

RISK ASSOCIATED WITH DEBT FUNDS

Every coin has two sides and so does investing in debt. There is no such

thing as a completely safe or risk-free investment. So, while the debtmarket is wooing investors with its safe-keeping ability, understanding

the risks involved within this market is a good idea if one is to stay a

step ahead of danger.

There are no free lunches anywhere. As far as investment risks go, they

vary from investment to investment. The risk is different everywhere as

there are different debt funds present in the market place. Each fund

captures a different risk, be it interest rate risk, market risk or credit

risk.

Type of risks

One should always assess the kind of securities the fund they are

investing in will have and the type of risk associated with it.

Interest rate risk

Interest rate movements have an inverse relationship with the net asset

value (NAV) of a fund. If rates rise, the NAV of a fund comes downand vice-versa. This is why people prefer investing in such bonds when

they feel that the interest rates are going to be cut. This often affects

longer-tenure funds such as medium and long term bond funds or gilt

funds; these will get affected as they invest primarily in government

bonds. Coming to how interest rate risks affect bond prices. If you own

a bond paying 6% interest and want to sell it one year later on the open

market when the interest rate is 8%, you're going to get a lower price

than what you paid. After all, why would anyone buy your 6% bond if

he could get a new 8% bond? The only way he will do it is by buying

your bond at a discount. The longer you hold your bond, the less likelyyou are to lose money on it. As bonds are typically a long-term

investment, so this shouldn't really be a big concern.

Credit risk


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If your fund buys corporate bonds, it is essentially purchasing a claim to

the assets of the company. Just as with individuals, corporations take on

debt in the hope to grow. Sometimes, they take on too much or their

operations start to perform poorly and they are unable to repay their

debts. This is just like someone taking on too much credit card debt and

then having to file for bankruptcy. At times, companies will file for

bankruptcy and won't be able to repay the principal on their debt. This

means that the investor can theoretically lose his entire investment,although this is not a particularly common occurrence. In such a case,

when the organization that issued the bonds goes out of business for

some reason, it will obviously not be able to fulfill any more interest

payments or otherwise redeem the bond's value, creating a credit risk.

This risk increases/decreases depending on the reliability and stability

of the company. Non-government or corporate bonds carry more of this

type of risk than bonds issued by the government or government-

backed organizations which are usually considered credit risk free asone does not expect the government to go bankrupt and shut shop.

Liquidity risk

A while ago debt funds faced severe redemption pressures as

companies reeling under the liquidity crunch pulled out money from

liquid and debt funds they had invested in. This was due to a

combination of reasons, like banks tightening working capital loans for

companies and retail investors wanting to cash out as well. This led to

massive distress selling by mutual funds coping with redemptionpressures. With companies trying to get cash from the supposedly liquid

debt assets and retail investors seeing yet another NAV drop in their

portfolio, wiping away whatever returns they were making, the as such

smooth working debt markets, crashed under selling overload.. While

funds as such do not like holding too many illiquid papers, mutual

funds, especially those with lock-in periods, do hold securitized papers;

pass through certificates (PTC), securities issued by finance companies

and also a few corporate bonds.

Default risk

During times of financial troubles and slowdowns, there is a likelihood

of companies which have issued debt, defaulting on their interest and

principal payments. Credit defaults badly affect the NAV of the fund


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and can be a major threat to investors and the profits they have made

prior to this lean patch. Such risks plague the debt market too,

especially smaller companies who have issued debt and are now facing

a cash flow problem.

Regulatory risk

When the regulations that govern a particular market, in this instancethe debt market, undergo changes, be it due to regulators being

changed, new safety or modern norms being approached, then the debt

market can take unforeseen turns, and this too is a risk that on should be

aware of.

Market risk

When a fund holds a lot of securities or bonds of a particular kind, say a

100,000 securities for example, and the market trade volumes for that

security is 10,000 or so, one runs a market risk. This is to say that if thefund needs to liquidate these securities, then due to the thin trading

volume, will cause the bond prices to drop drastically once these

100.000 shares are being offloaded.

This is a market risk which can occur when one fund holds a security

that is not traded so heavily as the amount it wants to offload, or when

the market situation is such that the overall trade volumes drop

drastically.

Settlement risk

This is basically a counterparty risk that exists when one buys securities

and bonds from a third party. This risk lasts till the bond purchased

reaches the fund purchasing it. This risk, however, is now not such a

threat as you have a settlement guarantee fund and in most cases in

India the counter party is the trading platform itself.


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RELIANCE LIQUID FUND VS. BANK FIXED

DEPOSIT

Scheme/ Fund

Category

Minimum

investment period

Approximate

Returns

Tax on interest

/Dividend

Distribution Tax

Reliance Liquid

Fund Category

0 day 4.5 % 28.325 %

Bank Fixed

Deposit

7 days 3.5 % 33.33 %

So why liquid funds?

# Tax advantage

# Zero entry and exit

# Redemption time 1 day

# Minimum investment Rs 5000

These funds have a specific purpose in your portfolio. They can be used

to park short term cash.


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A COMPARATIVE ANALYSIS OF DIFFERENT

FLOATING RATE FUNDS

Funds Chosen for Comparison:

11 Reliance Floating Rate

11 HDFC Floating Rate Income ST Retail

11 Magnum Floating Rate ST

Reliance Floating Rate HDFC Floating Rate Income

ST Retail

Magnum Floating R

ST

Standard Deviation= 0.22

Sharpe Ratio= 13.34

Standard Deviation= 0.24

Sharpe Ratio= 11.02

Standard Deviation=

Sharpe Ratio= 1.94

This fund has got a higher

Sharpe ratio compared to other

two funds, so the return offeredis more than the risk involved in

investing in this fund.

This fund has got higher Sharpe

ratio compared to magnum

floating rate fund. So the returnoffered is more than the risk

involved in investing in this

fund.

Sharpe ratio for this f

very low compared to

two funds. The returnoffered is very low

considering the risk

involved in investing

fund.

The standard deviation is pretty

low compared to other two

funds. This shows that the fund

is less risky.

Standard deviation of this fund is

also low. Its less risky than the

magnum floating rate fund.

Standard deviation is

very high. This fund i

more risky than the ot

two funds.

Source: www.valueresearchonline.com

(Value Research Fund Rating as on Aug 31, 2009.)
http://www.valueresearchonline.com/http://www.valueresearchonline.com/


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TAX STRUCTURE

Let us have a look at the tax structure for debt and liquid schemes.

Particulars Individuals Corporate NRI*

Dividends (In the hands of investors)

Debt Schemes Tax free Tax free Tax free

Dividend Distribution Tax (By the Scheme)

Debt Schemes 12.5% +

10%surcharge +

3% cess

= 14.163%

20% + 10% surcharge + 3% cess

= 22.66%

12.5% + 10%

surcharge + 3% c= 14.163%

Money market

and Liquid

Schemes

25% + 10% +3% = 28.325%

Long Term Capital Gains

Debt Schemes 10% without indexation or 20% with

indexation. Whichever is lower + 10% +

cess

Without Indexation 11.33%

With Indexation 22.66%

Short Term Capital Gains

Debt Schemes 30% + 10% + 3% = 33.99%


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RESEARCH FINDINGS

Mysore Market comprises of around 400 Corporate and

Smes and also approximately 120 cooperative societies and trust

exist here. Various large and small scale industries existing in Mysore

include handicraft Exports, agriculture Produce,

automobile/Engineering Industry, food/food related industry, Pharma,textiles, IT& Telecom, tyre /tube manufacturers.

Mysore, Karnatakas second largest city, is fast emerging as the IT

destination after Bangalore. This rapid transformation in the citys

profile is mainly because of the surge in Mysores real estate segment.

Bangalore is currently facing space crunch. Property values in

Bangalore are all time high. All these factors are driving away the IT

and ITES companies from Bangalore. Mysore is emerging as

Bangalores twin city. New industrial hubs have developed in the city

and also the city currently boasts of various IT and non-IT campuseslike Software Paradigms Pvt Ltd., Excel-Soft Technologies Pvt. Ltd,

SDD Global Solutions Pvt Ltd., iRobot, Infomaze Technologies and

Solutions Pvt Ltd., Meritor, Automotive Axles Ltd. In addition to this,

Mysore houses many big companies like Sagas Autotec Private Ltd.,

Mysore Paper mills, Mysore Paints and Varnish Ltd. to name a few.

Untapped market is huge as our customer base extends from

Corporate to SMEs from cooperative banks to trusts from cooperative

societies to clubs and many other prospective customers are there on the

list of our target customers. And also The city's growing attractivenessas a commercial and IT destination offers vast potential for further

development.

Relationship with clients is what drives business here in

Mysore. People here are little conservative when it comes to investment

and that is the reason why Banks and IFAs remain the preferred channel

as investors trust them for their advice and after sales service. Even in

case of institutional investment relationship is what makes any AMC do

business.

Preferred AMCs include SBI Mutual Fund, LIC Mutual

Fund and Reliance AMC Ltd. As we have already mentioned that

even institutional investors are little conservative when it comes to


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investment. So SBI being a PSU is undoubtedly preferred. But

gradually the scene is changing and a few institutions have started

considering returns, fund corpus and AMC ranking before making

investments. This is where we gain a lead when it comes to Average

AUM and the size of the AMC. LIC gets the advantage of its premier

brand name and also the returns it had recently delivered in its liquid

fund category have been phenomenal.

SEGMENTATION OF MYSORE MARKET

Mysore market is broadly classified into 3 regions. They are as follows:

1. CBD (Central Business District)

2. SBD (Secondary Business District)

3. Sub-Urban and Peripheral Markets:

CBD (Central Business District):-

CBD area for the Mysore city concentrates around the

Mysore Palace. All the major commercial developments and

Government office have come up in the close vicinity of the

Mysore palace. Major commercial streets are the Dhanvantri

road, Devarajaurs market, Sayaji road. Devarajaurs road, Sayaji

road are the commercial nerve of the Mysore city. Most of the

posh clubs of the city are situated in this area.

SBD (Secondary Business District)

SBD includes areas like Jayalakshmipuram, especially the

Kalidas Road, Temple road, and the Gokulam road. Centurion

bank, HDFC, ING Vysya, and many other financing institutions

have made their presence especially in the SBD area. Known

corporate like iRobot and SDD Global Solutions exist here.

Sub-Urban and Peripheral Markets

This is the major target area for us because large no. of corporate and

SMEs are located here. Major projects are being planned in this area,

especially in the north western part of the city with Hebbal Industrial

Area and towards the southern part of the city i.e., Nanjangud Area.


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LIMITATIONS

Following are the hurdles we encounter in our path of success.

Bank managers have a fear of losing float. Most of the banksare reluctant in pushing their clients investment in our debt fund

category as they feel that this will deplete the banks float. So they are

not very willing in suggesting their clients to invest money with us.

Directly approaching clients creates problem if it happens tobe a banks counter. This is a serious issue that we often encounter.

Since bank managers have this fear of losing float so they dont

welcome us directly approaching their clients. And if we do so it spoils

the relationship and we light lose on some other part of business from

the bank.

Investors here in Mysore are conservative and they areseldom willing to invest in units of mutual funds. Awareness level of

investors is also not very great and they still prefer investment in PSUs

over other private sector AMCs.


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RECOMMENDATIONS

After gathering such valuable information and coming

across the aforesaid research findings this is what I

have as future strategies or recommendations.

Rapport Building with Clients and all business partners. As

we have already seen that relationship is what drives business in

Mysore so the foremost strategy has to be the most basic one i.e.rapport building.In order to get business it is really important to

build a sustaining relationship of mutual trust, harmony and

understanding. Once this is done we come on the same

wavelength with the client and a climate of trust and respect is

built and hence it becomes a lot easier to convince or persuade

the client.

Issues with Bank managers and other partners need to be

diplomatically taken care of. Banks are very important channel

partners for distribution of our schemes and so it is of prime

importance to share a healthy as well as professional relationship

with them. Best would be if we go hand in hand.


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Creating more awareness about our products and frequently

informing clients is a must. Once we are in a relationship with

client we should treat him like a player and help him in winning.

If that happens that it will be a win-win situation for both of us.

Understanding customer needs and frequently make him aware ofour products would ultimately make our job easier.

Initially the focus should be on counter activation. Last but

not the least this is going to be our initial action plan. We have to

increase our client base by activating as many counters as

possible and later on we can try and push the client to increase

the investment amount.

REFERENCES

www.wikipedia.org

outlookmoney.com

www.financialexpress.com

www.investopedia.com

www.valueresearchonline.com

www.thehindu.comwww.business-standard.com

www.reliancemutual.com
http://www.wikipedia.org/-52khttp://www.spokes.com/http://www.financialexpress.com/http://www.investopedia.com/http://www.valueresearchonline.com/http://www.thehindu.com/http://www.business-standard.com/http://www.reliancemutual.com/http://www.wikipedia.org/-52khttp://www.spokes.com/http://www.financialexpress.com/http://www.investopedia.com/http://www.valueresearchonline.com/http://www.thehindu.com/http://www.business-standard.com/http://www.reliancemutual.com/


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