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“Customer Satisfaction at RelianceMoney, Ajmer”
A project Report submitted in partial fulfillment of the
requirements for the degree of
MASTER OF BUSINESS ADMINISTRATIONAffiliated to Punjab Technical University, jalandar
Submitted to Submitted by
Ms. Manoj Mittal DeepakMBA 4 t h Semester
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ACKNOWLEDGEMENTS
I take this opportunity to express my gratitude to all the people who have guided and
helped me directly or indirectly in the course of completion of my project.
I feel immense pleasure to express my profound thanks to my guide Ms. Hina Khan
(HR Manager), who gave me an opportunity to do my summers at RELIANCE
Money.
I am thankful to my Faculty Guide Ms Manoj Mittal (Lecturer) for her constant
support and guidance. Her valuable suggestions have helped me to complete my
project successfully.
Deepak
(i)
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SUMMARY
The basic objective of any financial services company would be to provide an absolute tailor
made products and services to the customer and to retain them into the organization, but to
retain a particular customer is not easy because customer expectations change by time and
it becomes a tough job for the companies to curb the needs of their customers. Now with the
case of asset management company which is getting its pace and a lot of companies are
emerging as players, here a study has been undertaken with regards to RELIANCE MONEY
where study looks into the expectation of the customers regarding mutual funds and issues
relating to customers expectation. The need for this research is to emphasis the
expectations of customer of mutual funds and how the company in contrast to the
expectations is performing.
This research is conducted to understand the customer’s perception towards mutual fund.
Till yesterday people had very less knowledge for mutual funds because brokerage
companies in India have not made efforts to expand the market. They have been doing
business with the same clientele. There is also a lack of investor awareness as far as
markets are concerned. The Harshad Mehta scam and various other scams have created a
bad impression in people's minds and this need to be changed. Just to put things in
perspective, India has 330 million bank accounts. The mutual fund industry has 30 million
unique folios. Unfortunately, in the broking industry, the number of people with Demat
accounts has continued to stagnate at 5.85 million in the last 10-12 years, which is
worrisome. Every industry in India has grown over the last 10 years except this one.
Whatever retail participation exists is coming from bigger cities such as Mumbai and Delhi.
The services have not reached bottom-of-the-pyramid towns. Reliance is conducting investor
awareness campaigns every Saturday at Reliance money centers.
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized is shared by its unit holders in
proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. The flow chart below
describes broadly the working of a mutual fund.(ii)
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CONTENTS
S. No. Topic Page no.
Acknowledgement (i)
Summary (ii)
1. Introduction 2
2. Purpose of study 3
3. Objectives 4
4. Limitations of Study 5
5. Research Methodology 6
6. Industry Profile 7
7. Company Profile 15
8. SWOT analysis of the organization 24
9. Analysis 28
10. Findings and suggestions 3811. Conclusions & Recommendations 40
Annexure
Questionnaire (i)
Bibliography (iii)
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INTRODUCTION,
OBJECTIVES &
RESEARCH
METHODOLOGY
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INTRODUCTION
Customer satisfaction is a measure of how products and services supplied by a
company can meet the customer’s expectations.
Customer satisfaction is still one of the single strongest predictors of customer
retention. It’s considerably more expensive to attract new customers than it is to
keep old ones happy. So measuring customer satisfaction is very crucial.
With better understanding of customers' perceptions, companies can determine the
actions required to meet the customers' needs. They can identify their own strengths
and weaknesses, where they stand in comparison to their competitors, chart out path
for future progress and improvement. Customer satisfaction measurement helps to
promote an increased focus on customer and helps in improvements in the
processes used within the company.
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2
PURPOSE OF THE STUDY
The main purpose of the study is to know the expectations of those investors who
invested in RELIANCE mutual funds and the satisfaction levels of investors with the
services provided by RELIANCE money, Ajmer.
In the present competitive environment it is very crucial for every business firm to
ensure satisfaction to its customers. According to one survey it was found that it
costs five times more to attract a new customer than to retain an existing customer.
Here the main purpose of the survey is to know the various factors that are very
important in satisfying the customers’ needs and to know how RELIANCE money isensuring its customers satisfaction.
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3
OBJECTIVES
The following are the objectives of the Management project.
To understand the different investment options provided by RELIANCE
MONEY through it’s mutual fund schemes.
To know the investors’ expectations on mutual funds offered by RELIANCEMONEY.
To know the various services provided by RELIANCE Money to its investors.
To study the satisfaction levels of customers of mutual funds in RELIANCEMONEY.
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4
LIMITATIONS
As the data was collected through questionnaire, there are chances of biased
information provided by the respondent.
The study is confined to the existing customers of RELIANCE MONEY only.
The survey will be limited only to Ajmer city.
The time duration of the study through questionnaire was 12 days, which is less
to cover 30 % of total customers which is an ideal size for a sample.
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RESEARCH METHODOLOGY
Data for the survey is collected through:
Primary sources
• Observation of customers’ responses and feed back in Reliance
Money office.
• Using structured questionnaire for the existing customers.
Secondary Sources
• Company Brochures
• Company Website
• Books
• Internet
Sample size: sample size for the survey is 100.
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Type of sampling: stratified sampling technique is used for collecting theprimary data. The data is collected only from RELIANCE customers.
Methods used for analysis: bar charts and pie charts are the tools thatwill be used in analyzing the data.
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INDUSTRY PROFILE
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INTRODUCTION TO MUTUAL FUND INDUSTRY
The origin of mutual fund industry in India is with the introduction of the concept of
mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated
from the year 1987 when non-UTI players entered the industry in the past decade,
Indian mutual fund industry had seen a dramatic improvement, both qualities wise as
well as quantity wise. Before, the monopoly of the market had seen an ending phase;
the Assets under Management (AUM) were Rs. 67bn. The private sector entry to the
fund family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it
reached the height of 1,540 bn.
Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is
less than the deposits of SBI alone, constitute less than 11% of the total deposits
held by the Indian banking industry. The main reason of its poor growth is that the
mutual fund industry in India is new in the country. Large sections of Indian investors
are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all
mutual fund companies, to market the product correctly abreast of selling. The
mutual fund industry can be broadly put into four phases according to the
development of the sector. Each phase is briefly described as under.
First Phase - 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set
up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from
the RBI and the Industrial Development Bank of India (IDBI) took over the regulatoryand administrative control in place of RBI. The first scheme launched by UTI was
Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under
management.
Second Phase - 1987-1993 (Entry of Public Sector Funds)
Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can bank
Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92).
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LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under
management.
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Third Phase - 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families. Also, 1993
was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The
erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private
sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers
and acquisitions. As at the end of January 2003, there were 33 mutual funds with
total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of
assets under management was way ahead of other mutual funds.
Fourth Phase - since February 2003
This phase had bitter experience for UTI. It was bifurcated into two separate entities.
One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835
crores (as on January 2003). The Specified Undertaking of Unit Trust of India,functioning under an administrator and under the rules framed by Government of
India and does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores
of AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private
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sector funds, the mutual fund industry has entered its current phase of consolidation
and growth. As at the end of September, 2004, there were 29 funds, which manage
assets of Rs.153108 crores under 421 schemes.
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Mutual Fund Operation Flow Chart
ORGANISATION OF A MUTUAL FUND
There are many entities involved and the diagram below illustrates the
organizational set up of a mutual fund:
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Mutual funds in INDIA have a 3-tier structure of Sponsor – Trustee – AMC.
Sponsor is the promoter of the fund.
Sponsor creates the AMC and the trustee company and appoints theBoards of both these companies, with SEBI approval.
A mutual fund is constituted as a Trust
A trust deed is signed by trustees and registered under the Indian Trust
Act.
The mutual fund is formed as trust in INDIA, and supervised by the Board
of Trustees.
The trustees appoint the asset management company (AMC) to actually
manage the investor’s money.
The AMC’s capital is contributed by the sponsor. The AMC is the business
face of the mutual fund.
Investor’s money is held in the Trust (the mutual fund). The AMC gets a
fee for managing the funds, according to the mandate of the investors.
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Sponsor should have at-least 5-year track record in the financial services
business and should have made profit in at-least 3 out of the 5 years.
Trustees are appointed by the sponsor with SEBI approval.
At-least 2/3 of trustees should be independent.
At-least ½ of the AMC’s Board should be independent members.
An AMC of one fund cannot be Trustee of another fund.
AMC should have a net worth of at least Rs. 10 crore at all times.
AMC should be registered with SEBI.
AMC signs an investment management agreement with the trustees.
Trustee Company and AMC are usually private limited companies.
11
Trustees oversee the AMC and seek regular reports and information from
them.
Trustees are required to meet at least 4 times a year to review the AMC.
The investor’s funds and the investments are held by the custodian.
Sponsor and the custodian cannot be the same entity.
R&T agents manage the sale and repurchase of units and keep the unit
holder accounts.
If the schemes of one fund are taken over by another fund, it is called as
scheme take over. This requires SEBI and trustee approval.
If two AMCs merge, the stakes of sponsor’s changes and the schemes of
both funds come together. High court, SEBI and Trustee approval needed.
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If one AMC or sponsor buys out the entire stake of another sponsor in an
AMC, there is a takeover of AMC. The sponsor, who has sold out, exits the
AMC. This needs high court approval as well as SEBI and Trustee approval.
Investors can choose to exit at NAV if they do not approve of the transfer.
They have a right to be informed. No approval is required, in the case of open
ended funds.
For close ended funds investor approvals is required for all cases of
merger and take over.
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REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA
The regulation of mutual funds in India is governed by the SEBI vide the SEBI
(Mutual Fund) Regulation, Act 1996 (here in after referred to as SEBI Regulations).
These regulations make it mandatory for mutual funds to have a three-tier structure
of sponsor – Trustee – Asset Management Company (AMC). The sponsor is the
promoter of the mutual fund and appoints the trustees. The Trustees are responsible
to the investors in the mutual fund and appoint the AMC for managing the investment
portfolio.SEBI regulations also provide for who can be a sponsor, trustee and AMC,
specifying the format of agreement between these entities. These agreements
provide for the rights, duties and obligations of these three entities. The UTI is also
structured as a trust. The important difference through is that UTI does not have
sponsors or a separate AMC. Financial intuitions and banks that contributed to the
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initial capital of the UTI have their representatives on UTI’s Board of Trustees, which
oversees the operation of UTI Mutual Fund. The Association of Mutual Funds in India
(AMFI) is a self-regulatory body formed by the various MF Companies to address the
practices and policies of various aspects like new scheme launches, payments to
intermediaries’ comparisons and other ethical systems.
Likewise, different companies have their own Compliance and Audit offices, which
are mandated to control and report adherence to and deviations if any on the
regulations and policies issued by SEBI.
ADVANTAGES OF MUTUAL FUNDS
Professional Management
Diversification
Convenient Administration
Return Potential
Low Costs
Liquidity
Transparency
Flexibility
Choice of schemes
Tax benefits
well regulated
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MUTUAL FUNDS STRUCTURE /COMPANY STRUCTURE
Establishes the
mutual fund as a
trust and
registers with
SEBI
Mutual fund
(For e.g. Reliance
AMC)
Asset
Management
Company.
Hold unit holders funds in
mutual fund. Enters into an
agreement with SEBI.
Floats mutual funds as per
the regulations of SEBI
regulations.
Sponsor
Company
Managed by the
board of
trustees.
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Custodian
Registrar
Provides custodial services.
Provides registrar and
transfer services.
Distributors
Provides the network for
distribution of schemes to
the investors.
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COMPANY PROFILE
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COMPANY PROFILE
Introduction
Reliance Money is promoted by Reliance Capital; one of India's leading and fastest
growing private sector financial services companies, ranking among the top 3 private
sector financial services and banking companies, in terms of net worth. Reliance
Money is a part of the Reliance Anil Dhirubhai Ambani Group.
It is a one-stop-shop, providing end-to-end financial solutions (including mobile and
web-based services). It has the largest non-banking distribution channel with over
10,000 outlets and 20,000 touch points spread across 5,165 cities/ towns; catering to
the diverse needs of over 3 million existing customers. Reliance Money is a
comprehensive electronic transaction platform offering a wide range of asset
classes. Reliance Money endeavors to change the way investors transact in financial
markets and avails financial services. It provides customers with access to Equity,
Equity and Commodity Derivatives, Offshore Investments, Portfolio Management
Services, Wealth Management Services,
Investment Banking, Mutual Funds, IPOs, Life and General Insurance products and
Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and
Money Changing services. Reliance Capital Ltd. has also interests in asset
management, life and general insurance, private equity and proprietary investments,
stock broking and other financial services.
In addition to the home-grown portfolio of products and services that Reliance Money
has to offer, Reliance Money also distributes a variety of third party financial
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products. It also assists millions of investors in creating customized individual
portfolios based on their diverse investment needs and risk profiles
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Reliance Money is the largest broker and distributor of financial products in India with
the largest distribution network and almost over 3,174 employees. Money has
increased its market share among private financial companies to nearly Convenient
& effective – Anytime & anywhere financial transaction
Vision
To build a global enterprise for all our stakeholders, and a great future for our country,
To give millions of young Indians the power to shape their destiny.
Mission
To create and nurture a world-class, high performance environment aimed at
delighting our customers by providing endless financial products in all part of the
country.
Success sutras of Reliance Money
The success story of the company is driven by 8 success sutras adopted by it
namely:
1. Trust
2. Integrity
3. Dedication
4. Commitment
5. Enterprise
6. Hard work and Team play
7. Learning and Innovation,
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8. Empathy and Humility.
These are the values that bind success with Reliance Money
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Achievements
List of recent achievements
• In two successive joint surveys by The Economic Times’ Brand Equity and
ACNielsen, Reliance was recognized as India’s Most Trusted Mutual Fund.
• The company also walked away with seven other scheme prizes – five of
them being outright winners – in the Gulf 2007 Lipper Awards. These included
the Fund House of the Year by Lipper GCC as well as ICRA Online and the
Most Improved Fund House by Asia Asset Management.
• It also received the NDTV Business Leadership Award 2007 in the mutual
fund category and runners’ up recognition as the Best Fund House in the
Outlook Money-NDTV Profit Awards.
• In addition, the company received the coveted CNBC Web18 Genius of the
Web distinction for the Best Mutual Fund Website in the country. RCAM was
awarded the India Onshore Fund House 2008 instituted by the Asian Investor
magazine.
• The company also won the India Equities award in the 5-yearPerformance
category.
Other achievements
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Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year
March 31, 2009 as against Rs. 24 billion of the corresponding previous period, an
increase of 48%. It also achieved a net profit of Rs. 368 million (US$ 8 million) for the
same period, as against a net profit of Rs. 1 million for the corresponding previous
period
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• Reliance Money is the one of the leading brokerage and distributor of financial
products in India with more than 3 million customers
• Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi,
Webaroo, optionsXpress Holdings, Goldride Securities, World Gold Council, Wincor
Nixdorf and DBS Vickers to facilitate better access to wider world class choices to its
customers
• It is amongst the leading Mutual fund distributors of the country distributing
products of 20 AMCs. It is the the largest private sector partner for Western Union
Money Transfer in India
• To further improve its position in the money changing and money transfer business,
Reliance Money has acquired a significant share holding in Wall Street Finance Ltd,
a leading provider of money changing and money transfer services in the Country
• Reliance Money has tied up with Kuoni India and plans to retail its forex
products/services through the national network of over 70 Kuoni outlets
• Reliance Money has tied up with India Post and World Gold Council to sell gold
coins through the post office network across the country
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• Reliance Money has obtained Category I Merchant Banking License from the
Securities and Exchange Board of India. This new license allows Reliance Money to
provide a wide range of investment banking services such as Issue Management,
Underwriting, Private Equity Advisory/ Syndication and Corporate Finance services
in India
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• Reliance Money is taking its first steps into the Commodities Exchange business
and is in the process of acquiring a 15 per cent stake in Hong Kong Mercantile
Exchange (HKMEx). With this holding, Reliance Money becomes the second-largest
shareholder in the commodity exchange and will have a board membership.
Reliance Money is the first Indian firm to acquire a stake in an international exchange
• It has also obtained approval from the Ministry of Consumer Affairs for acquiring
10% stake in the National Multi-Commodity Exchange of India Ltd. (NMCE).
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Organizational Structure
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Working At Branch level
Reliance Money Ajmer (Branch office)
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Staff at Branch Level
At Reliance Money, Ajmer, the following hierarchy exists:-
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• Three Centre managers.
• Eight to ten Business Development Executives under each Centre manager.
• Business associates under each Centre Manager their number depending
upon the area allotted to each CM.
•
Remisars under each centre manager.• Team leader and PFC”s under him for life insurance.
• One Customer Support Executive and One Senior Finance executive.
Centre Manager
The Centre manager is the Heart of the office who acts as a connection between
Head office (Mumbai), National head, Zonal head, Regional head, Area head,
Cluster head, The Clients, Remisars, Business associates and the Business
development executives.
The Centre manager is responsible for the following functions;
1. Organizing all the BDE’s, Business Associates and Remisars under one
banner.
2. Making sure that the BDE’s, Business Associates and Remisars are carrying
out their functions well i.e. expanding the business in form of selling the Share
trading A/c’s , mutual funds, selling general along with life insurance policies .
3. Planning strategies for increasing the business (i.e. installation of canopies at
the right place, appropriate advertising in different business Expo’s or
corporate meets. Etc.)
4. Interviewing and Selecting Business development executive for the
organization.
5. Identifying the potential agents in the market and making them the business
associate or remisar of Reliance Money for good business prospects.
6. Assisting the new BDE’s or remisars in handling the clients.
7. Training the new BDE’s and the remisars about the product and how to
approach the clients.
8. Reporting the regional head on the daily basis about the daily business
performed
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SWOT Analysis
Strengths
• 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.
• It is India’s first insurance company to be awarded the ISO 9001:2000
certification across all functions, processes, products and locations pan-India. The quality assurance provides an edge over other players.
• Company issued 36.57 Lac policies during the year as compared to 14.60 Lac
in the previous year thereby registering a growth of 150%.
• RGIC has been able to give highest ROI of 11.27% in last five years. The net
worth has doubled to Rs.4.94 billion from last year’s Rs.2.59 billion.
• Excellent outreach with a large distribution network. It has 200 branches across
171 cities and over 20,000 intermediaries. The setup provides the company is
very strong and very effective distribution network, and consequently a strong
penetration in the market.
• Expert’s and research team to make strategies and products for company as
well as clients base to resolve the problem.
• Capture the 17% of the Private Sector Share & 7% share of the General
Insurance Industry
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• Reserves and Surplus has increased five times to Rs.4.998 billion from Rs.1.04
billion previous year.
• The Company has earned Rs.1034 crore of New Premium Business in
Financial Year 2008 which is 41% share of the Private Sector Industry & 33% of
the Industry as whole.
• Company is ranked number one in the New Premium Business in Financial
Year 2008. Other than this, it maintains a good database of it existing and
potential customer, has a brand image and low pricing strategy
• Reliance Money unlike other brokering houses has introduced a new prepaid
system of brokerage for the share trading in which it provides the lowest form of
brokerage charged from an investor.
Weaknesses
• Dependence on fellow subsidiaries for various supplies.
-Extra control or interference from fellow subsidiaries.
• Sudden expansion in year 2007-08 by establishing more than 125 branches
has increased operations and administration expenses due to which losses
incurred.
• Due to the emphasis on recruiting young people in the company, staff is
inexperienced.
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• Clientage is not so loyal as compared to the clientage of other competing
companies in the same industry
• The phenomenon of job hopping is very common in the company. So, the
problem of loyalty towards the company on behalf of the employees is a major
problmem
Opportunities
• IRDA has removed controls on pricing in General Insurance business with
effect from 1st January, 2008. IRDA had notified that except for Motor Third
Party risks, all other new insurances and renewals effective on or after 1st
January, 2008, insurers shall be free to quotes rates of premium in accordance
with file and use guidelines.
• General insurance industry in India has grown at 15% CAGR in terms of gross
premium collection.
• The company has moved to 3rd position amongst Private Sector Insurers in
Financial Year 2008 & is ranked 7th amongst the Industry with 14 General
Insurance players.
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• In india, there is still a lot more market to be tapped which is getting supported
by increasing spending and thereby saving of people.
• The mindset of people have also started changing. Now, they consider trading
as a good source of earning.
• The entire workforce consists of mostly youngsters, which means they can be
encouraged and motivated to do good work because they have a long way to
go and most of them are eager to climb the ladder.
Threats
• New Entrants
-Future General India Life Insurance Company Limited -Sep. 2007
-IDBI Fortis Life Insurance Company Ltd. –Dec 2007
-Bharti Axa General Insurance Company Ltd. -June 2008
• New joint ventures (JVs) by industry giants
- Max India forms JVC with Bupa Finance to foray into Health Insurance
-Shriram Group is to enter General Insurance Market
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• Stiff competition from existing players in the market
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EMPIRICAL ANALYSIS
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TABLE SHOWING DIFFERENT AGE GROUP OF THE RESPONDENTS
Inference: The majority of the respondents i.e. 46% are from the age group of 36-
54. And the second largest age group is 18-36. And the remaining investors are
from 54-72 age group.
AGE NO OF RESPONDENTS
0-18 0
18-36 40
36-54 50
54-72 10
72 & ABOVE 0
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PREFERRED FUND STRUCTURE
Structure of the fund No of investors preferred
Open – ended fund 64
Close – ended fund 24
Interval funds 12
Total 100
Inference: It is observed that 64 out of 100 that are 64% of investors are interested
to invest their money in open ended funds the reason can be attributed to its
convenience to enter and exit at any time. 24% investors preferred to invest in close
ended funds because they are long term investors as well as they want some tax
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benefits. And the remaining 12% investors replied that they don’t mind to invest in
any funds including interval funds
30
INVESTORS SCHEME PREFERENCE
Preferred fund scheme No of investors preferred
Growth scheme 52
Income scheme 16
Balanced scheme 32
Total 100
Inference: In the above given graph it is showed that 52 out of 100 that are 52% of
customers are interested to invest in growth schemes. 8 out of 25 that are 32% of
customers are interested to invest in Balanced schemes and the remaining 16%
customers are preferred to invest in Income schemes.
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31
INVESTORS FUND PREFERENCE
Type of fund No of investors preferred
Tax saver funds 15
Index funds 40
Sectorial funds 45
Total 100
Inference: Out of 100 investors 15 that is 15% of customers are preferred to invest
in Tax saver funds. 40 that is 40% of investors are preferred to invest in index funds
which give returns based upon respective indexes.. 45 that is 45% of investors are
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interested to invest in sectorial funds that means they are ready to take high risk but
want high returns
32
TABLE SHOWING REPEATION OF INVESTMENTS MADE BY THE
RESPONDENTS
RESPONSE NO OF RESPONDENTS
YES 64
NO 36TOTAL 100
No of Respondents
YES, 64
NO, 36YES
NO
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Inference: Out of 100 respondents 64 customers have already reinvested in the
company, while the rest are waiting for a correct time to enter in the market for the
second time.
33
GETTING MONTHLY / QUARTERLY STATEMENTS IN TIME
Getting Monthly / Quarterly
statements from time to time
No of Investors
Yes 70
No 30
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Inference:70 out of 100 people getting monthly/quarterly statements from time
to time 30 out of 100 people not getting monthly/quarterly statements from time
to time .
34
RESPONDENTS RANKING ON THE CUSTOMER SERVICE OF
RELIANCE MUTUAL FUNDS
RANKS NO OF RESPONDENTS
ONE 34
TWO 16
THREE 26
FOUR 16
FIVE 8
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Inference: Out of 100 respondents 34 ranked RELIANCE as Rank One for
customer service function.
35
RESPONSE REGARDING AREAS FOR IMPROVEMENT BY
RELIANCE MUTUAL FUNDS
AREAS NO OF RESPONDENT
CUSTOMER SERVICE 35
MONITORING OF FUND 38
AGENTS TRAINING 22
OTHERS 5
TOTAL 100
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Inference
Out of 100 respondents 38 respondents want RELIANCE to improve at their fund
monitoring function.
36
RESPONSE REGARDING USAGE OF VALUE ADDED SERVICES
OFFERED BY RELIANCE MUTUAL FUNDS
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Inference: Most of the customers are making use of value added services of Ecs
and a few of them make use online transaction and direct investment.
37
VALUE ADDED SERVICES NO OF RESPONDENT
ATM 0
Ecs 60
Online transaction 20
Direct investment 40
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FINDINGS &
SUGGESTIONS
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FINDINGS & SUGGESTIONS
The findings for the above research are as follows:-
It was found that majority of the investors i.e.46% are from the age group
of 36-54. This is the group of middle age people who deserve to invest for
their future financial needs.
It was found that Out of 100 respondents 64 customers have already
reinvested in the company, while the rest are waiting for a correct time to
enter in the market for the second time.
It was observed that Out of 100 respondents 62 investors have reinvested
due to better returns and performance of funds. While the rest of the
investors have voted for performance of funds and services provided by
the company.
It was observed that Out of 100 investors 15 that is 15% of customers are
preferred to invest in Tax saver funds. 40 that is 40% of investors are
preferred to invest in index funds which give returns based upon
respective indexes.. 45 that is 45% of investors are interested to invest in
sectorial funds that means they are ready to take high risk but want high
returns
It was found that Out of 100 respondents 34 ranked RELIANCE as Rank
one for customer service function.
It was found that Out of 100 respondents 38 respondents want RELIANCE
to improve at their fund monitoring function
39
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CONCLUSION AND RECOMMENDATIONS
The following suggestions are the outcome of the research and applications of these
suggestions are not necessary:-
The company should come up with innovative ways of service at their door
steps this may be a costly affair but will surely give positive results in the long
run.
The company should take the initiative of training the advisors about the new
funds from time to time which also makes the advisors connected to thecompany.
The company should also emphasize on the monitoring of funds which directly
relates to the returns of a specific fund.
The company should focus on the advertising strategy and also the marketing
of the product.
The company should emphasize on creating an awareness about the SIP
options which is always preferable when the market is volatile.
The company doesn’t have enough tax saving plans or appropriate plans for
tax so which they should come up with.
There should be a regular system of monitoring the satisfaction of customers.
Focus of employees should be customers’ satisfaction.
24*7 as this will enable the organization as a whole and the branch in specific
to become long term choice of customers.
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40
ANNEXURE
QUESTIONNAIRE
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NAME:
AGE:
PROFESSION:
1. Have you ever invested in RELIANCE Mutual Funds?
Yes [ ]
No [ ]
2. If yes why did you choose RELIANCE Mutual Funds?
3. By structure in which type of schemes did you invested?
Open - Ended Schemes [ ]
Close - Ended Schemes [ ]
Interval Schemes [ ]
4. By investment objective in which type of schemes have you invested?
Growth Schemes [ ]
Income Schemes [ ]
Balanced Schemes [ ]
5. In which type of fund you want to invest?
Tax saver funds [ ]
Index funds [ ]
Sector ial funds [ ]
(i)6. Did you repeat your investment after your initial investments?
Yes No
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7. Are you getting Monthly / Quarterly statements from time to time?
Yes [ ]
No [ ]
8. Are you satisfied with portfolio management managed by RELIANCE Money?
Yes [ ]
No [ ]
9. Which value added service you are using?
ATM [ ] Online transaction [ ]
Ecs [ ] Direct investment [ ]
10. Are you satisfied with value added services offered by RELIANCE Money?
Yes [ ]
No [ ]
11.What is your opinion on RELIANCE Mutual Funds overall performance?
Excellent [ ]
Good [ ]
Better [ ]
Bad [ ]
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12.In what areas do you want RELIANCE mutual funds to improve?
E.g. Customer service
Monitoring of fund
Agents training
Others
(ii)
BIBLIOGRAPHY
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BIBLIOGRAPHY
BOOKS
MUTUAL FUNDS IN INDIA – ICFAI University press
Published by ICFAI BUSINESS SCHOOL
Research Methodology- C.R. Kothari
COMPANY BROCHURES AND PAMPHLETS
WEBSITES
• www.reliancemutualfunds.com
• www.amfiindia.com
• www.mutualfundsindia.com
• www.mutualfundsindia.com
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• www.ask.com
• www.faq.com
• www.bseindia.com
• www.amfiindia.com/mutual funds/nav/about funds/open ended schemes.com
• www.investopedia/aboutus/html