7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 1/61
BHARAT HEAVY ELECTRICALS
LIMITED
TRAINING&
DEVELOPMENT
SUMMER INTERNSHIP PROJECT REPORT2008-2010
Corporate Guide:-
J.P.BANDUNI
H.R MANAGER
Faculty Guide:-
LIMT GREATER NOIDA
Submitted in Partial Fulfillment for the Award of Degree MASTER IN BUSSINESS ADMNISTRATION
Submitted by: -SURABHI SACHANRoll No:-0817270096
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 2/61
Prakash Chandra Dash
B.I.M.I.T, Bhubaneswar
FACULTY GUIDE CERTIFICATE
This is to certify that Rajendranath Behera, a student of Bhubaneswar Insti tute of Management and Information
Technology, Bhubaneswar pursuing his MBA (Marketing) has
worked under my guidance and supervision on his Work
entitled “Reliance Money – An Investment Avenue” . To the
best of my knowledge this is an original piece of work.
(Prakash Chandra Dash)Faculty Marketing
I Submitted by: -Rajendranath Behera
Regd no:-0706275024
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 3/61
DECLARATION
I Sri Rajendranath Behera do hereby declare that the project report
entitled “Reliance Money – An Investment Avenue” being submitted to
Biju Patnaik University of Technology, Rourkela is my own piece of
work and it has not been submitted to any other institute or published at
any time before.
Rajendranath BeheraRegd No: - 0706275024
Bhubaneswar Institute of Management & InformationTechnology
II Submitted by: -Rajendranath Behera
Regd no:-0706275024
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 4/61
ACKNOWLEDGEMENT
This report bears the imprint of many people. Right from the experienced
staff of Reliance Money, to the staff of Bhubaneswar Institute of
Management & Information Technology without whose support and
guidance I would have not got the unique opportunity to successfully
complete my internship in this esteemed organization.
I take this opportunity to express my deep gratitude to all the employeesof, Reliance Money, Bhubaneswar . Also I am indebted for the rich
guidance, knowledge and suggestions provided by my guide, Mr.
Prakash Das who took sincere efforts and illustrated the Marketing
Concept of Financial Products, with their vast knowledge in the field,
which helped me in carrying out my internship.
I am gratified to Prof. B.M. Das for their earnest coordination owing to
which, I had the leg-up of undertaking the internship at the prominent organization, Reliance Money Pvt ltd.
Last but not least, I also thank all those people whom I met in the
industry during my internship and helped me to accomplish my
assignments in the most efficient and effective manner.
Date: 18th Aug 2008
Place: Bhubaneswar (Rajendranath Behera)
III Submitted by: -Rajendranath Behera
Regd no:-0706275024
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 5/61
EXECUTIVE SUMMARY
The project work is pursued as a part of MBA (Marketing)
Curriculum at BHUBANESWAR INSTITUTE OF MANAGEMENTAND INFORMATION TECHNOLOGY, Bhubaneswar. It is
undertaken as a traineeship at Reliance Money Ltd. The project is
done under expert supervision and guidance of Mr. Prakash Chandra
Das (Lecture in Marketing) and Mr. Suresh Behera (Center Sales
Manager, Reliance Money)
The Pro jec t i s abou t the s tudy o f market ing and sa les of
financial products and also the efforts done to make improvements inthe customer acquisition process for better results.
At RELIANCE MONEY, initially the trainees were imparted
process and product knowledge. They were given sufficient time to
know about the products and also about sales and dist ribution
channel . They had to work with the sales representatives of the
Distributor and think of ways of improving the sales and distribution
channel and implementing them. The main aim was to increase salesand for this different ways were tried and implemented. They were
provided with da tabase and had to make cold calls from the data.
Company activity was also one of the major sources for generating
business. Initially they even accompanied sales representatives to the
clients place. Main objective was to know the need of the customer
and how to fulfill that in the best way.
The project dealt with various fields like:
1. Trading and Demat account
2. Mutual funds
3. Life insurance
4. General insurance
Thus i t gave trainees the opportunity to learn about all the
products and with the range of products Reliance money offered it
IV Submitted by: -Rajendranath Behera
Regd no:-0706275024
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 6/61
made the task a bit easier as we could fulfill the need of the customer
in a better way.
Our task was divided in 4 phases:
1. Product knowledge: This included the theoretical knowledge about
the field and products which needed to be marketed.
2. Pitching in retail sector: This included the implementation of the
knowledge impar ted to us and the tes t of our marketing ski ll s.
Initially we were accompanied by other sales executive so that we can
learn how to deal with the customers and understand their need. This
also enhanced our interpersonal skills and confidence level.
3. Implementation in retail sector and pitching in corporate: By
the start of this phase we were confident enough about the pitching
and fulfilling the needs of the customer in the retail sector. This also
included of the ways we should pitch the corporate.
4 . Implementat ion at corporate l eve ls : This included the
implementation of the all the knowledge and ways learnt for the
pitching and extracting busines s out of the corporate.
With the end of 6 weeks every phase was completed and it gave
us the real experience of retail as well as corporate world.
V Submitted by: -Rajendranath Behera
Regd no:-0706275024
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 7/61
CONTENTCertificate of CompanyFaculty Guide Certificate iDeclaration iiAcknowledgement iiiExecutive Summary iv-v
CHAPTER 1 INTRODUCTION 1-8
1.1 INVESTMENT AVENUES AND ALTERNATIVES 11.1.1 Non-marketable Financial Assets 51.1.2 Equity Shares 51.1.3 Bonds 61.1.4 Money Market Instruments 61.1.5 Mutual Funds 61.1.6 Life Insurance 71.1.7 Real Estate 71.1.8 Precious Objects 7
1.1.9 Financial Derivatives 7
CHAPTER 2 LITERATURE REVIEW 9-11
2.1 Significance of Study 102.2 Objective of Study 11
CHAPTER 3 COMPANY PROFILE 12-13
3.1 PRODUCT OFFERING 133.1.1 Trading Portal 133.1.2 Financial Products 133.1.3 Value-Added Services 133.1.4 Credit Cards 133.1.5 Gold coins retailing 13
CHAPTER 4 TRADING PORTAL 14-19
4.1 DEMAT ACCOUNT 14
CHAPTER 5 FINANCIAL PRODUCTS 20-42
5.1 MUTUAL FUNDS 20
5.1.1 Open end versus Closed end Schemes 215.1.2 Constitution of a Mutual Fund 23
VI Submitted by: -Rajendranath Behera
Regd no:-0706275024
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 8/61
5.1.3 Types of a Mutual Funds 245.1.4 How to invest in Mutual Fund 265.1.5 Nature of Income Distribution to Investors 285.1.6 Different schemes of Reliance Mutual fund 29
5.2 LIFE INSURANCE 315.2.1 Tax Benefits of Insurance 335.2.2 Claims 355.2.3 Plans 37
5.3 GENERAL INSURANCE 395.3.1 Types of General Insurance 39
5.4 BASIC FEATURES 415.5 VALUE ADDED FEATURES 415.6 POLICY FEATURES 41
CHAPTER 6 OBJECTIVE AND CONCLUSIONS 43-51
6.1 OBJECTIVE 436.2 METHODOLOGY 436.3 SWOT ANALYSIS 466.4 MY ROLE IN THE ORGANISATION 466.5 LIMITATION 486.6 LEARNINGS 48
CHAPTER 7 RESULTS AND FINDINGS 49-52
CHAPTER 8 CONCLUSION AND RECOMMENDATIONS 53-54
8.1 RECOMMENDATIONS 538.2 KEY ISSUES AND CONCLUSIONS 53
APPENDIX 55-58
A.1: QUESTIONNAIRE 55A.2: LIST OF FIGURES 57A.3: BIBLOGRAPHY 58A.4: REFERENCES 58
VII Submitted by: -Rajendranath Behera
Regd no:-0706275024
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 9/61
INTRODUCTION
Whether it’s retiring early, saving for children’s education,
paying off a loan or to live a secured and satisfied life everyone has
dreams they can achieve by investing their savings. However, the
question that arises is that, should one leave his money tucked away
in the bank or plough it into the stock market where the potential for
higher returns is greater but the chances of losing money is higher?
Deciding where to invest depends on one`s att itude towards r isk
(one`s capacity to take risk and one`s tolerance towards risk) and the
inves tment hor izon and non-availabil ity of guaranteed-re turn
investment products.
In such a scenario, investing in equity, which offers returns that
are higher than the inflation rate, help to build wealth and to improve
the standard of living. It is fine that stock market fluctuates over
time. At present as far as the world economy is concerned it is on a
boom. As soon as globalization and liberalization has come into act it
has well shaped the economy. India has turned out to be the hot
destination for the money investors and this has resulted growth in the
sensex .It was never hoped before that BSE will ever touch the mark of 16000 points. But only due to the new economic opportunities and
the confidence of people in India’s economic future i t has been
successful .Investing in equity is the way to earn money and to fulfill
the dreams. The r isk involved with invest ing in equity can be
moderated by careful stock selection and close monitoring.
INVESTMENT AVENUES AND ALTERNATIVES
Investment alternatives vary from fixed income to variableincome which includes RBI bonds, government securit ies, f ixed
deposit, equity investments, property and so on.
In recent years the 6.5 percent tax-free RBI Bonds have become
a very popular saving instrument -- especially amongst individuals.
Till 1996, these bonds gave returns of 10 per cent. This came down to
9 per cent and then 8 percent and then in 2003 it was reduced to 6.5
per cent (tax free). Nowadays, 8 percent taxable Government of India
bonds are also doing well to attract investors who want safe and
higher yield.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 10/61
However, with inflation at nearly 4.5%, the return offered by
these instruments were still attractive. However, with the scrapping of
the tax-free bonds, safe investment options for individuals have
become very limited and people are now choosing to go wi th either
post office saving schemes or equity related instruments.
Take a look at what is happening. Debt funds, which were said
to be relat ively r isk-free, are giving very less returns. Monthly
Income Plans offered by mutual funds are also not attractive as their
portfolio is made up of 80 percent debt and 20 percent equity. Wi th
debt giving very less returns and returns from equity becoming
stagnant, the returns from MIPs are also very attractive. The returns
offered by MIPs are totally dependant upon the type of security anddebt instruments held by the fund But with recent rally in the stock
market , very few people are now going for MIPs and have a very
positive sentiment about the market and wou ld like to stay with the
market for long. But continuously we still have a single question in
mind:
So where should individuals park their money now?
"The 8 per cent taxable RBI Bonds seem to be one of the best options
right now looking for a safe avenues."
The person in the 30 percent tax bracket, the 8 per cent RBI
bonds wi ll give returns of approximately 5.6 per cent. Though this is
much lower than the previous 6.5 percent, it is still a better than most
other options. If you are a senior citizen, the Senior Citizens Savings
scheme offering a 9 Percent yearly interest is a good investment
option. The scheme was announced in the Budget 2006-2007 and wasmeant for people above the age of 60. However, this scheme has a
maximum deposit limit of Rs. 15 lacs while RBI Bonds do not have
any l imit . In this case, the term for deposit i s f ive years with a
facility for premature withdrawal. The 9 percent returns are subject to
tax, so if you are in the 30 percent tax bracket, you will effectively
get returns of 6.3 per cent.
Another option can be Floating Rate Bond Fund offered by
mutua l fu nds. Basica lly, these funds inves t in floa ting rat einstruments and therefore have a direct correlation to interest rates. If
interest rates go up the returns from these funds rise and returns fall
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 11/61
with a fall in interest rates. This is unlike debt funds, where there is a
reverse relat ionship between interest rates and returns. A r ise in
interest rates results in a fall in returns. In the current scenario, these
funds are likely to give retu rns of 5 per cent to 5.5 per cent.
The dividends are tax-free in the hands of the investor and most
importantly, there is complete liquidity. Again, there is no limit on
the amount that can be deposited. Also, there is hardly any volatility
making it a safe option. If you are willing to take a bit of risk, you
can divide your portfolio in such a way that 60 percent is invested in
float ing rate bond funds and the remaining 40 percent in equity.
That 's l ike having an MIP except that instead of 80 percent in debt
and 20 percent in equity, here the 60 percent is in floating rate bond
funds. Such a portfolio can give you returns of aprox. 8.5 % to 9.5 %.
The NSCs and the Kisan Vikas Patras give returns of 8 percent
so for those in the 30 percent tax bracket, it works out to 5.6 percent.
Here too there is no limit on the amount of deposit. However, here the
interest is posted only at the t ime of maturi ty . So i t is not a good
option if you want regular returns. On the other hand, RBI Bonds
give returns every six months or half yearly. So, depending upon
their risk profile and need for liquidity, one will have to decide ontheir portfolio. For anyone below 35 years, it is recommend that one
should invest some part of there portfolio in RBI Bonds and in NSCs,
KVPs as a long term investments and the remaining in combination of
f loat ing rate bond funds and equity But for those above 35, i t is
advocate that one should look at nearly 40 percent in RBI Bonds,
30 percent in NSCs, KVPs, hence giving safe and regular income.
And the remaining 30 per cent in floating rate bond funds and equity.
For those above the age of 60, 40 percent must be put in the Senior Citizens Scheme (of course, this is up to a maximum limit of Rs 15
lakh), another 40 percent in RBI Bonds and the remaining 20 percent
in f loat ing rate bond funds, so that one has some l iquidi ty.As an
investor one has a wide array of investment avenues available to one
InvestmentAvenues
Equity SharesNon-
Marketable
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 12/61
Non-marketable Financial Assets - A good por tion of f inancialassets is represented by non-marketable financial assets. These can be
classified into the following broad categories:
• Bank deposits
• Post office deposits
• Company deposits
• Provident fund deposits
Equity Shares - Equity shares represent ownership capital. As anequity shareholder, you have an ownership stake in the company. This
essentially means that you have a residual interest in income and
wealth. Perhaps, the most romantic among var ious inves tment
avenues , equity shares are c lass if ied into the fol lowing broad
categories by stock market analysts:
• Blue chip shares
• Growth shares
• Income shares
• Cyclical shares
• Speculative shares
Fig1.1 Investment Alternatives
Bonds
MoneyMarket
Instruments
Mutual
Fund
Life Insurance
Policies
Real Estate PreciousObjects
Financial
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 13/61
Bonds - Bonds or debentures represent long-term debt instruments.
The issuer of a bond promises to pay a stipulated steam of cash flow.
Bonds may be classified into the following categories:
•
Government securities• Government of India relief bonds
• Government agency securities
• PSU bonds
• Debentures of private sector companies
• Preference shares
Money Market Instruments - Debt ins truments which have a
maturity of less than one year at the time of issue are called money
market instruments. The important money market instruments are:
• Treasury bills
• Commercial paper
• Certificates of deposits
Mutual Funds - Instead of directly buying equity shares and/or fixed
income instruments, you can participate in various schemes floated by
mutual funds which, in turn, invest in equity shares and fixed income
securities. There are three broad types of mutual fund schemes:
• Equity schemes
• Debt schemes
• Balanced schemes
Life Insurance - In a broad sense, life insurance may be viewed as an
investment. Insurance premiums represent the sacrifice and the
assured sum the benefit. The important types of insurance policies in
India are:• Endowment assurance policy
• Money back policy
• Whole life policy
• Term assurance policy
Real Estate - For the bulk of the investors the most important asset in
their portfol io is a residential house. In addit ion to a residential
house, the more affluent investors are likely to be interested in thefollowing types of real estate:
• Agricultural land
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 14/61
• Semi-urban land
• Time share in a holiday resort
Precious Objects - Precious objects are items that are generally small
in s ize but h ighly valuable in monetary terms. Some impor tant
precious objects are:
• Gold and silver
• Precious stones
• Art objects
Financial Derivatives - A financial derivative is an instrument whose
value is derived from the value of an underlying asset . I t may be
viewed as a s ide bet on the asset . The most impor tant financialderivatives from the point of view of investors are:
• Options
• Futures
Since every indiv idual would l ike to earn return on the ir
investment but where to invest has always been a problem. There has
always been a confusion as to which instrument to invest, which
ins trument wil l give me higher returns , e tc . Even now nuclear f amil ies a re in and so are longer li fe spans . Even inflat ion is
increasing and so do the standard of life, medical costs, and other
things. In such a scenario, one need to think as to how he will take
care of all his future needs and build up a corpus that will not only
take care of routine expenses but a lso provide for ext ra cos ts ,
especially of health care. One need to have a corpus of funds, post-
ret irement, which wil l give h im close to 100% of the salary to
preserve the lifestyle he has grown to enjoy.
LITERATURE SURVEY
According to the Webster’s dictionary, literature is “the writings
that pertain to a particular branch of learning, and printed matter”.And review means “to examine again, to study carefully”.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 15/61
Therefore literature review is the printed matter which we study
very carefully during our work. This project is also a collection of
insight into the different printed material.
As this pro jec t i s speci fically related to sales of f inancial products hence books on investments is one of the study materials.
The insurance institute of India has published books which give
an insight into the l ife insurance products and general insurance
products.
The main source of data through which this project has taken its
shape is the c irculars of SEBI and IRDA. These c irculars give
description of existing market.
The knowledge about the marketing principles is gained from
the book “principles of marketing” written by Philip Kotler.
Chapter “positioning and marketing of services” of the “service
management and operations” published by prentice hall international
editions gives us the outline of marketing of services.
Chapter “Building Customer Satisfaction, Value and Retention”of “Marketing Management” written by Philip Kotler. Purpose of this
book is to provide background needed to understand the basics of
forming strong customer bonds and customer relationship
management.
Chapter on d is tr ibut ion channels in the book “marketing
channels” written by Louis W.stern & add I.E.I Ansary. Purpose of
thi s book i s to provide the de ta il ed knowledge about what is
distribution channel, its importance & role in marketing.
Chapter “The concept and role of mutual funds” of the AMFI
mutual fund testing programme by association of mutual funds in
India. This book provide concept of mutual funds.
The article “managing your Demat account” published in the
MINT dated June 18, 2007 page 12 give knowledge about Demat
account.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 16/61
Last but not the least , the pract ical experiences of rel iance
money has given the best ever exposure on the actually market works
in financial products and services.
SIGNIFICANCE OF STUDY
The need of the study arises because of the reason that a trainee
must understand the company, its achievements and tasks, products
and services and also to collect information about its competitors, its products and services offered. So that, aft er understanding and
collecting information about the organization and its competitors, a
trainee will be able to work well for the organization.
COMPANY PROFILE
Reliance Money is promoted by Reliance Capital; one of India's
l eading and fastes t growing priva te sec to r financial services
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 17/61
companies, ranking among the top 3 private sector financial services
and banking companies, in terms of net worth. Reliance Capital is a
part of the Reliance Anil Dhirubhai Ambani Group.
Thus, Reliance Money provides a comprehensive platform,offering an investment avenue for a wide range of asset classes. Its
endeavor is to change the way India transacts in financial market and
avails financial services. Reliance Money offers a single window
facility, enabling you to access amongst others, Equities, Equity and
Commodity derivatives, Offshore Investments, IPO’s, Mutual Funds,
Life Insurance and General Insurance products.
Advantages offered by Reliance money over other companies:
• Cost Effective
• Convenience
• Security
• Single Window for Multiple Products
• 3 in 1 Integrated Access
• Demat Account with Reliance Capital
•
Other Services like research, live news from Reuter and DowJones, etc.
PRODUCT OFFERING
1. Trading Portal (with almost negligible brokerage )
• Equity Broking
• Commodity Broking
• Derivatives ( Futures & Options )
• Offshore Investments (Contract For Differences)• D-Mat Account.
2. Financial Products
• Mutual Funds
• Life Insurance
o ULIP plan
o Term Plan
o Money Back Plan
• General Insurance
o Vehicle/Motor Insurance
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 18/61
o Health Insurance
o House insurance
• IPO’s
• NFOs3. Value-Added Services
• Retirement Planning
• Financial Planning
• Tax Saving
• Children Future Planning
4. Credit Cards
5. Gold coins retail ing
TRADING PORTAL
Online trading refers to buying and selling of the
shares/stocks/contracts/bonds with the use of internet. In this shares
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 19/61
are not issued in physical form rather they are t ransferred in the
dematerialized form in the Demat account directly.
DEMAT ACCOUNT
In India, a Demat account , the abbreviation for dematerialized
account, is a type of banking account which dematerializes paper-
based physical stock shares. The dematerialized account is used to
avoid holding physical shares: the shares are bought and sold through
a broker . This account i s popular in India . The Securities and
Exchange Board of India (SEBI) mandates a Demat account for
share tr ad ing above 500 shares. As o f Apr il 2006, i t became
mandatory that any person holding a Demat account should posses a
Permanent Account Number (PAN), and the deadline for submissionof PAN details to the depository lapsed on January 2007.
What are the benefits of opening a Demat account?
Demat account has become a necessity for all categories of investors
for the following reasons/ benefits:
• SEBI has made it compulsory for trades in almost all scrip’s
to be set tled in Demat mode. Although, t rades up to 500shares can be settled in physical form, physical settlement is
virtually not taking place for the apprehension of bad delivery
on account of mismatch of signatures, forgery of signatures,
fake certificates, etc.
• It is a safe and convenient way to hold securities compared to
holding securities in physical form..
• No stamp du ty is levi ed on transfer of securities held in
Demat form.
• Instantaneous transfer of securities enhances liquidity.
• I t e liminates delays, thefts, interceptions and subsequent
misuse of certificates.
• Change of name, address, registration of power of attorney,
delet ion of deceased 's name, etc . - can be effected across
companies by one single instruction to the DP.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 20/61
• Each share is a market lot for the purpose of transactions - so
no odd lot problem.
Any number of securities can be transferred/delivered with one
delivery order. Therefore, paperwork and signing of multiple transfer
forms is done away wi th . I t fac il itates tak ing advances against
securities on low margin/low interest.
DEMAT ACCOUNT
There are many broking houses doing business in
India and they charge a brokerage on every transactionmade online or offline. (Buying and Selling are treated as
separate transaction). Reliance Money’s advantage over
others is that it’s charging the lowest brokerage in the
market which is just 1 paisa on every executive trade
irrespective of the volume traded. Reliance Money, the
brokerage and distribution arm of Reliance ADA Group,
aims to tap investors in the smaller towns and cit ies
through a flat fee structure. The current leaders in theretail broking segment like ICICI Direct, India Infoline and
Indiabulls offer a ‘pay per use’ model where the customer
pays a percentage of the amount transacted by him.
Reliance Money’s brokerage rates are quite competitive.
The new wonder is Reliance Money's pre-paid card for stock
market brokerage. Reliance Money, the financial services division of
Anil Dhirubhai Ambani Group-promoted Reliance Capital, is bringingto the market pre-paid cards in denominations of Rs500, Rs1,350 and
Rs2,500 with validity period of two months, six months and twelve
months respectively.
These cards would offer brokerage at one-third of the rate being
charged by institutional and individual brokerage houses. Sample this.
For a pre-paid card worth Rs500, an investor can trade up to Rs90
lakh in futures and option segment or can undertake intra-day trade of similar amount. Besides, an investor can undertake a delivery-based
activity of Rs10 lakh.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 21/61
The Rs1350 worth pre-paid card, total trading limit would reach
Rs 3 crore , of which Rs 2 .70 crore i s for the F&O segment and
balance Rs30 lakh for de live ry-based activities.
For Rs2500 pre-paid card, total trading limit is fixed at Rs16
crore, that include F&O limit of Rs15.40 crore and balance Rs 60 lakh
for delivery-based broking.
(Source Web)
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 22/61
Fig.4.1 Fee Structure
Converted to percentage terms - Reliance Money offers most
competitive brokerage rates - 0.05% for delivery trades and 0.005%
for non-delivery trades (fixed fee of Rs500/- for delivery trades up to
Rs10 lacs and/or non-delivery trades up to Rs1 crore). Industry rates
vary between 0.4% to 0.85% for delivery trades and between 0.05%
and 0.10% for non delivery trades.
Target low level of retail penetration in India - less than 3 per
cent of household financing savings makes it into equity markets
Reliance Money consumers can trade in equities, commodities
and offshore Investments , IPO’s, Mutual Funds, Insurance, Money
transfer and Money Changing - all through single window, both off-
line and online.
Reliance Money has already tied-up with CMC Capital Plc UK to offer offshore Investment products to Indian consumers as per
guidelines.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 23/61
How reliance money scored over others?
1. Two way authentication: Reliance offers its customers with
a token (an electronic gadget) that generates a password, which
are a third level of security in addition to the customer log in and
a password provided. The password generated by the token is
valid only for a period of 20 seconds. If the web page expires,
for the fresh login, a new password generated by the token has to
be keyed in by the customer.
2. Lowest brokerage: Reliance offers the lowest brokerage of
1 paisa which is very less with respect to the other DPs in the
market.
3. User friendly software: The portal offered is very easy to
understand and use.
4. Forex and offshore investment : Reliance provides the
offshore facility which no other AMC is providing in the market.
5. Better research and news: Reliance offers news from the
DOW JONES and REUTERS.
Seeking to bring share trading closer to consumers just l ike
ATMs, Reliance Capital's stock brokerage arm Reliance
Money launched Internet trading services through web-enabled retail
kiosks.
Monday, April 16, 2007
Reliance Money launches Internet trading through kiosks
NEW DELHI: Seeking to bring share trading closer to consumers just like ATMs,Rel i ance Cap i ta l 's s tock b rokerage a rm Rel i ance Money on Monday l aunchedInternet trading services through Web-enabled retail kiosks.
Becoming the f irs t Indian company to provide share trading through Web-enabledre ta i l k iosks , Ani l Dhirubhai Ambani Group f i rm sa id i t p lans to deploy 10 ,000such kiosks across the country, for which it is also talking to various retail chains.
"These Internet enabled kiosks wil l provide the users anytime-anywhere access toReliance Money 's f inancia l t ransaction por ta l th rough which they can inves t invarious f inancial ins truments in a secure environment", Mr. Sudip Bandyopadhyay,CEO, Reliance Money said.
In i ts f irs t phase, the kiosks would be operational at the retai l outlets of RelianceMoney, which had commenced operations last week across 700 cities. The kiosks atvarious retail chains would be launched in the subsequent phases.
The company has t ied up with Wincor Nixdorf , a leading global provider of retai l banking IT solution with net revenues of $1.4 bi llion and presence in 90 countries,
for these kiosks.
Winco r-Nixdorf ' s APAC Re ta i l Head , Mr . Andrew Phay s aid , "We s ee g rea t potential for our products in the country owing to the retai l boom and will continueto introduce latest products for our customers here."
The company said this would be biggest ever deployment of Internet enabled retai lkiosks by any company across the world. - PTI
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 24/61
(Source: Web)
FINANCIAL PRODUCTS
A mutual fund represents a vehicle for collective investment.
When you participate in a scheme of a mutual fund, you become a
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 25/61
part-owner of the investments held under that scheme. The most
important characteristic of a mutual fund is that the contributors and
the beneficiaries of the fund are the same class of people, namely the
investors. The term “MUTUAL” means that investors contribute to the
pool, and also benefit from the pool.
The money held in the trust is divided into shares of equal value
called “UNITS”. Investors become “unit-holders” and are allocated
units based on the amount of their investment. 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.
Investments in securities are spread across a wide cross-section
of industries and sectors and thus the risk is reduced. Diversification
reduces the ri sk because a ll s tocks may not move in the same
direction in the same proportion at the same time. Mutual fund issues
units to the investors in accordance with quantum of money invested
by them. Investors of mutual funds are known as uni t ho lders.
Thus a mutual fund is the most sui table investment for thecommon man as it offers an opportunity to invest in a diversified,
professionally managed basket of secu rities at a relatively low cost.
Fig.5.1 Concept of mutual fund
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 26/61
The shift in investor preference towards mutual funds has been
facilitated by:
• Fiscal incentives
• Increasing returns from debt mutual fund investments in the last
few years due to the secular decline in interest rates
• The growing number of choices available to investors
• The gradual change in the investors’ risks profile and returns.
Open end versus Closed end Schemes
There are two different types of funds.
• Open-ended Fund/ Scheme
• Closed-ended fund/ Scheme
The key differences between the closed-end and open-end schemes
area as follows:-
The subscription to a closed-end scheme is kept open only for a
limited period (usually one month to three months). Where an open-end scheme accepts funds from investors by offer ing i ts units or
shares on a continuing basis.
A closed-end scheme does not allow investors to withdraw funds
as and when they like, whereas an open-end scheme permits investors
to wi thdraw funds on a con tinu ing basi s under a re -purchase
arrangement.
A closed-end scheme has a fixed maturity period (usually five tofifteen years) whereas an open-end scheme has no maturity period.
The closed-end schemes are listed on the secondary market,
whereas the open-end schemes are ordinarily not list.
In India, three entities are central to a mutual fund operation:
• The sponsor,
•
The mutual fund• The asset management company.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 27/61
The sponsor is the key who establishes the mutual fund and the
asset Management Company. For example, Templeton International
( sponsor ) set up the Temple ton Mutual Fund which has been
constituted as a trust under the Indian Trusts Act, 1882 and registered
with SEBI. The mutual fund is, in a way, an umbrella organization
that floats various schemes in which investors participate. The asset
management company, organized as a separate joint Stock company,
manages the funds of mutual fund under its various schemes. For
example, Templeton Asset Management (India) Pvt. Ltd., the asset
management company set up by Templeton International, manages the
various schemes of Templeton Mutual Fund.
Why one should invest in mutual funds?
Mutual funds are preferable mode of investment due to the following
reasons:
• Reduction of risk
• Professional Management
• Tax benefits
• Low transaction costs
• Highly regulated
• Liquidity
• Easy to administer
Why one should not invest in mutual funds?
The following are the reasons, which are deterrent to mutual fund
investment:
• No control over costs
• No tailor made portfolios
• Managing a portfolio of funds
Constitution of a Mutual Fund
There are a number of bodies that form a part of the mutual fund, they
are as follows:
• Sponsors
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 28/61
The sponsor is the company which sets up the mutual fund. It means
anybody corporate acting alone or in combination with another body
corporate established a mutual fund after initiating and completing
the formalities.
• Trustees
The management of the mutual fund is subject to the control of the
board of trustees of the fund. They guide the operations of the fund
and carry the crucial responsibility to see that AMC always act in the
best interest of the inves tors .
• Asset Management Company
The mutual fund is operated by a separately established assetmanagement company (AMC).It manages the funds of the various
schemes. It is entrusted with the specific task of mobilizing funds
under the scheme.
• Custodian
A custodian is a person carrying on the activities of the safekeeping
of the securities or participating in any clearing system on behalf of
the clients to effect deliveries of the securities.
Types of Mutual Funds
There are different ways of classifying mutual funds:
• An EQUITY FUND invests mainly in s tocks and shares of
companies. EQUITY FUNDS typically aim to generate long term
growth in the unit capital. There are a variety of ways in which
an equity portfolio can be created for investors. There are thusthe following choices in equity funds:
o Simple equity funds
o Industry Specific funds
o Index funds
o ELSS
Target market:
They are idea l for inves tor s having a long term perspec tive ,
Speculative outlook- the equity cult, who would like to make gains in
the shortest period of time and investors in their prime earning years-
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 29/61
specifically the young who have a decent earning and can take some
kind of risk.
• A DEBT FUND invests mainly in debt instruments like bondsand debentures, with high and consistent dividend payout. These
funds give decent returns but the capital appreciation is not
much. There are a variety of ways in which a debt portfolio can
be created for inves tors. There are thus the fol lowing cho ices in
debt funds:
o Liquid and Money market funds
o Gilt Funds
o Monthly Income Plano Floating rate funds
Target market:
o Retired people and others with a need for stability and regular
income.
o Investors who need some income to supplement their earnings.
• A BALANCED FUND invests in both equity and debt
instruments. It aims to generate growth and income by
per iodically distributing its assets over both types of secu rities .
Target market:
These ideal for investors looking for a combination of income and
moderate growth.
How to invest in mutual funds?
The fol lowing are the essential s teps which one must take into
account while investing in Mutual funds:-
Step 1- Identify the investment needs
Financial goals of an individual wil l vary, based on his/her age,
l ifestyle , f inancial independence, family commitments , level of
income and expenses among many other factors. Therefore the first
step is to assess one’s needs, which can be done by asking oneself
these questions:
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 30/61
Q1.What is my investment objectives and needs?
Q2.How much risk I am willing to take?
Q3.What is my cash flow requirements?
By going through such an exercise, one will know what one wants out
of his investment and can set the foundation for a sound mutual
fund investment strategy.
Step 2-Choose the right mutual fund
Once an individual has a clear strategy in mind, he now has to choose
which mutual fund and scheme he wants to invest in. The offer
document of the scheme tells its objectives and provides
supplementary detail like the track record of other schemes managed by the same fund manager. Some factors to eva luate before choosing a
particular mutual fu nd are:
• The track record of the performance over the past few years
in relation to appropriate yardstick and similar funds in the same
category.
• How well the fund is organized to provide efficient, prompt and
per sonalized service.
• Degree of transparency as reflected in frequency and quality of
their communications.
Step 3-Select the ideal mix of schemes.
Investing in one mutual fund may not meet all the investment needs.
One may consider investing in a combination of schemes to achieve
the specific goals.
Step 4- Invest regularly
For most of us, the approach that works best is to invest a f ixed
amount at specific intervals, say every month. By investing a fixed
sum each month one buys fewer units when the price is higher and
more units when the price is low, thus bringing down the average cost
per unit. This is called Rupee cost aver aging and is a disciplined
investment strategy followed by investors all over the world.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 31/61
Step 5-Keep the taxes in mind
If an individual comes under the high tax bracket and has util ized
ful ly the exemptions under Section 80L of the income tax act ,
investing in mutual funds will improve his return.
Step 6-Start early
It is desirable to sta rt i nvesting early and stick to a regul ar
investment plan. If one starts now .he will make more than if he waits
and invests later. The power of compounding lets one earn income on
income and one’s money multiplies at a compounded rate of return.
Step 7-The final Step
All one needs to do now is to get in touch with a mutual fund or one’sagent and start investing. Reap the benefits in the years to come.
Mutual funds are suitable for ever kind of investor-whether starting a
career or retiring, conservative or risk taking, growth oriented or
income seeking.
Nature of Income Distribution to Investors
At a broad level, the investors have three options:
• DIVIDEND PAY OUT OPTION
In this option investors receive dividends from the mutual fund, as
and when such dividends are declared. Dividends are paid in the form
of warrants, or are directly credited to the investor’s bank accounts.
• GROWTH OPTION
Investors who do not require periodic income distributions can choose
the growth option, where the incomes earned are retained in theinvestment por tfo lio, and a llowed to grow, rathe r than being
distributed to the investors.
• RE-INVESTMENT OPTION
In this option investors re invest the dividends that are declared by
the mutual fund, back into the fund itself, at NAV that is prevalent at
the time of reinvestment .In this option, the number of units held by
the investor will change with every reinvestment. The value of the
units will be similar to that under the dividend option.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 32/61
Different schemes of Reliance Mutual fund
The different schemes offered to various kinds of investors by
Reliance mutual fund can be broadly classified into three categories –
Equity, Debt and sec tor speci fic. Each of these categor ies has
different investment objectives and therefore has different portfolio.
Equity Schemes
• Reliance Growth Fund
• Reliance Vision Fund
• Reliance NRI Equity Fund
• Reliance Equity Opportunities Fund
• Reliance Index Fund• Reliance Tax Saver Fund
• Reliance Equity Fund
Debt Schemes
• Reliance Income Fund
• Reliance Medium Term Fund
• Reliance Short Term Fund
•
Reliance Liquid Fund• Reliance Monthly Income Plan
• Reliance Gilt Securities Fund
• Reliance Floating Rate Fund
• Reliance NRI Income Fund
Sector Specific Schemes
• Reliance Banking Fund
• Reliance Pharma Fund
• Reliance Media and Entertainment Fund
• Reliance Diversified Power Sector Fund
As I was more involved in the understanding and promotion of the
NFO of Reliance Equity Fund during the initial part of my training. I
would like to summarize it in brief.
Reliance Equity Fund
The Reliance Equity Fund is an open ended diversified equity
fund that seeks to provide long term capital appreciation by investing
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 33/61
in a portfolio constituted of equity and equity related securities of top
100 companies by market capitalization and of companies that are
available in derivatives segment, belonging to diverse sectors.
The investment strategy being that even if the markets go down,
the fund has a part of its portfolio hedged, which aims at minimizing
the downside risk. The fund will not only use hedging techniques to
limit the downside risk but will also try & capitalize on short selling
opportunities to generate additional returns for the investors. The
fund will invest 75-100% in equity and equity related instruments and
0-25% in debt and money market securities. In a nut shell what this
fund tries to do:
• Generate long term returns by invest ing in a dive rs ifi ed
portfolio of stocks .
• Minimize the downside risk by being in a hedged position
• Capitalize on generating additional returns by selective shorting.
"Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a f ixed sum called premiums, to
pay the other party called insured a fixed amount of money on the
happening of a certain event."
Reliance Life Insurance is an associate company of Reliance
Capital Ltd., which along with i ts associates has acquired 100%
shares in AMP Sanmar Life Insurance Co Ltd. Rel iance Life
Insurance, has a pan presence and a range of products catering to
individual as well as corporate needs. A total of 16 products covering
savings, protection & investment requirements.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 34/61
Vision : Empowering everyone live their dreams
Mission: Create unmatched value for everyone through dependable,
effective, transparent and profitable life insurance and pension plans
• Guiding Principles
• Customer Care and Satisfaction
• Corporate Governance
• Creativity and Innovation
• Competitiveness
NEED FOR LIFE INSURANCE
• Protection of the interest of the faculty of the loss of income due
to death of the breadwinner.
• Provision for the education & marriage of children.
• Post retirement income for self & dependents.
• Special needs like loss of income due to disabilities, accidents,
treatment of diseases, sickness etc.
• To protect against inflation.
Who Can Buy A Policy?
Any person who has attained majority and is eligible to enter
into a valid contract can insure himself/herself and those in whom
he/she has insurable interest. Policies can also be taken, subject to
certain conditions, on the l ife of one 's spouse or children. While
underwriting proposals, certain factors such as the policyholder’s
state of health, the proponent's income and other relevant factors are
considered by the Corporation.
Insurance for Women
Prior to na tional izat ion (1956), many pr iva te insurance
companies would offer insurance to female lives with some extra
premium or on restrictive conditions. However, after nationalization
of life insurance, the terms under which life insurance is granted to
female l ives have been reviewed from t ime-to-time. At present ,
women who work and earn an income are treated at par with men. Inother cases, a restrictive clause is imposed, only if the age of the
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 35/61
female is up to 30 years and if she does not have an income attracting
Income Tax.
Medical and Non-Medical Schemes
Life insurance is normally offered after a medical examination
of the l ife to be assured. However, to facil itate greater spread of
insurance and also to avoid inconvenience, Companies has been
extending insurance cover without any medical examination, subject
to certain conditions.
With Profit and Without Profit Plans
An insurance policy can be 'with' or 'without' profi t . In theformer, bonuses disclosed, i f any, after periodical valuat ions are
allot ted to the policy and are payable along with the contracted
amount. In 'without' profit plan the contracted amount is paid without
any addition. The premium rate charged for a 'with' profit policy is
therefore higher than for a 'without' profit policy.
Keyman Insurance
Keyman insurance is taken by a business firm on the life of keyemployee(s) to protect the firm against financial losses, which may
occur due to the premature demise of the Keyman.
Tax Benefits of Insurance
The tax breaks that are available under our various insurance and
pension po lici es are described below:
• Life insurance plans are eligible for deduction under Sec. 80C.
• Pension plans are eligible for a deduction under Sec. 80CCC.
• Health insurance plans/riders are eligible for deduction under
Sec. 80D.
• The proceeds or withdrawals of our life insurance policies are
exempt under Sec 10(10D), subject to norms prescribed in that
section.
Unit Linked Insurance Plan
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 36/61
ULIPs have been selling like proverbial ‘hot cakes’ in the recent
past and they are likely to cont inue to ou tsell thei r plain vanilla
counterparts going ahead. Earlier there were a gamut of traditional
products, for instance Endowment Plans ; Money back plans etc, then
came the concept of Unit Link Insurance Plans, which today has
caught the fancy of many people.
Unit Link plans work like a combination of Mutual Funds and
Life Insurance, just like in Mutual Funds the Investment here is also
broken up into units based on the current NAV, these products are
termed as Unit Linked plans because the Investment is broken up into
units.
For instance if you were to invest Rs10000, it would be broken into 3
components:
• Charges- These are charges that the Insurance Company deducts
from your premium, a major chunk of charges goes into paying
commission to the Agent for sourcing the business.
• Mortality- Expense- Mortality expenses are not as high as agent
commission; they approximately tend to be around Rs100/Lakh
for a 30 yr o ld man. In case of a death c laim of 1 lakh, the
insurance company can make this claim with a mere Rs100
deducted from you, now this is made possible because mortality
charge is deducted from every customer who has invested in the
plan. In this manner the Insurance Company collects a
substantial portion and not every person dies at the same time
leading to only a few claims in a single year.
• Investment – After the above 2 deductions , the ba lance isinvested on behalf of the customers, so in reality if the current
NAV is 10, and a customer has paid a premium of 10 ,000, then
allotment of uni ts would be 10,000 – (charges + Mortali ty
expense) current NAV . The same process is repeated in the
fol lowing years when premiums are pa id however in the
following years the charges tend to be lower as insurance charge
lesser after the 1 s t year. Mortality Cost however goes up with
age but does not increase substantially for a younger person inhis 20’s or 30’s as a result of which the money allotted towards
Investment goes up.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 37/61
Unit Link plans give the flexibility to withdraw your investments
earlier than Traditional Plans, but withdrawals can decrease the
Insurance cover you have opted for. The other thing to keep in mind
is the tax implication of making early withdrawals, from the returns
point of view Unit link plans give you a chance of choosing you r own
Investment Opt ions , which could be Debt , Equity or Balanced
(combination or both) whereas tradit ional plans have primarily
invested in debt instruments like Govt. Bonds where the security is
ensured but returns may not be very high.
Unit link plans also give a greater amount of flexibility in terms of
your policy not lapsing if premium in a year or two is not paid. The
other interesting option that these plans offer is the choice to decideyour own Insurance cover in the beginning. Flexibility wise Unit Link
plans definitely score over traditional plans ; even they tend to be
more transparent.
Claims
In case of Critical i l lness, Total and permanent disability or
Death claim please log the claim and submit listed documents either
directly to the Claims department, Chennai or at any of the nearest branch.
Register the Claim under:
• Death
• Critical Illness
• Disability
Survival or Maturity Benefits
Survival Benefits: Survival benefits are those payments which
are paid during the term of the policy. The frequency of payment may
vary from product to product.
Maturity Benefits: Payment made at end of the policy term as
shown in policy documents .
Documents required for death claim
• Claim form A: This form need to be fil led by the nominee or
claimant
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 38/61
• Claim form B - Certificate of last illness to be filled, signed and
stamped by the doctor in attendance during the last illness of the
deceased life assured.
•
Original Policy Documents• Original death certificate by Death and Birth Registrar
• Death certificate by the doctor confirming cause of death
• Nominees photo identification card copy attested by Insurance
company official.
• All hospital reports, if hospitalized during the last sickness
• Post Mortem Report and Viscera report, if performed
In case of accident or suicide
• First Information Report and final Police Investigation Report
• Panchnama /Inquest report
• News paper report on the acc ident wi th pho tographs, if available
Documents required for Total & permanent disability claim
• Claim forms (A & B)
• All hospital reports (certificate of diagnosis, attended physician
report, discharge summary, first consultation notes etc)
• Original policy document
• FIR and Police Investigation Report
• News paper report on the acc ident
• Panchanama or Inquest Report
PLANS
Individual Plans Product Name Description
Reliance
Automatic
Investment
Plan
A s ma rt p la n w hi ch a da pt s t o y ou r c ha ng in g r is k p ro fi le w it h
increasing age.
Reliance
Money
Guarantee
Plan
Under th is p lan the inves tment r i sk in the inves tment por t fo l io i s
borne by the policyholder.
Reliance
Endowment Plan
This p lan wi ll keep you f inanc ial ly p repa red for a l l t he s pec ial
occasions in your life.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 39/61
Reliance
Special
Endowment
Plan
This insurance policy is designed for people who wish to combine
savings with extended security.
Reliance
Cash Flow
Plan
This insurance pol icy is des igned for those who have a recur r ing
need for reinvestment in business or look for short- term investment
channels.
Reliance
Child Plan
This ins u rance po li cy i s designed fo r peop le who wish to s ave
money for a future time.
Reliance
Term Plan
This insurance policy is designed for those who only want life cover
for the p ro tec tion o f thei r f ami ly , and do not wish to s ave for
themselves.
RelianceWhole Life
Plan
This insurance pol icy is des igned for people who do not wish to
avai l o f any benef i t s themselves bu t wish to crea te an immedia teestate to protect their family by avail ing of insurance cover on their
life at a very low cost.
Reliance
Market
Return Plan
Reliance Market Return Fund is the unit- l inked product that helps
you invest in the f inancial markets in a combination of investment
instruments of your choice.
Reliance
Golden Years
Plan
Rel iance Go lden Year s P lan i s a f l ex ible package tha t p rov ides
f reedom of choice in choos ing the type of inves tment , l i fe cover ,
vesting options such as commuting and annuity options.
RelianceSimple Term
Plan
Reliance Simple Term Plan is a cost-effective, pure l ife insurance plan that offers you comprehensive and affordable coverage for a
limited period of time to suit your needs.
Reliance
Special Term
Plan
Reliance Special Term Plan is a pure l ife insurance plan that offers
you comprehensive and affordable coverage for a l imited period of
time to suit your needs.
Reliance
Credit
Guardian
Plan
Rel iance Credi t Guardian P lan ens u res tha t your hous ing loans,
personal loans or even outs tanding credit card bil ls are paid in the
e ve nt o f u nt im el y d em is e. T hu s k ee pi ng y ou a nd y ou r f am il y
protected from the burden and the worry of debt in such a si tuation.Reliance
Special
Credit
Guardian
Plan
Rel iance Specia l Credi t Guard ian Plan helps you and your family
avoids such s i tua t ions by secur ing your hous ing loans , personal
loans and even credit card payments. What makes the Plan special is
the fac t tha t on surv iva l a t matur i ty , a l l p remiums paid for your
basic policy will be returned to you.
Reliance
Connect 2
Life Plan
Reliance Connect 2 Life Plan helps you build securi ty and savings
for a better tomorrow.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 40/61
Employee Benefit Plans
Product Name Description
Reliance Group
Term Assurance
Policy
R el ia nc e G ro up T er m A ss ur an ce P ol ic y i s a o ne y ea r
Renewable Term Assurance contract . The benefi t is payable
on the happening of the contingency during one year . At the
end of the year, the contract may be renewed.
Reliance EDLI
Scheme
A ll e st ab li sh me nt s w it h a t l ea st 1 0 f ul l- ti me p er ma ne nt
employees and to whom the Employee' s Provident Fund and
Miscellaneous Provis ions Act, 1952 applies , have a s tatutory
liabil i ty to subscribe to Employee's Deposit Linked Insurance
Scheme (EDLI ), to p rov ide for l i fe ins u rance fo r a l l t hei r
employees.
Reliance GroupGratuity Policy A gra tu i ty po l icy tha t ref lec ts your company 's iden t i ty andwhich highlights the value of the benefi ts you provide to your
employees.
Reliance Group
Superannuation
Policy
A superannuation policy that ref lects your company's identi ty
and which highlights the value of the benefi ts you provide to
your employees.
Fundamentals of General Insurance companies are business
houses. The product they sell is financial protection. To succeed andsurvive, they must cover their costs, which include payments to cover
the losses of policyholders , as well as sales and administrative
expenses, taxes and dividends. Insurance companies have two sources
of income for covering these costs: premium and investment income.
The premium are co llec ted on a regu lar bas is and invested in
Government Bonds, Gift stocks, mutual funds, real estates and other
conservative avenues. However, investment income depends on
market conditions, interest rates, economy etc and varies from year toyear. Because of the uncertainty associated with the investment
income, insurance companies must generate enough income form
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 41/61
premium to cover the bulk of their expenses. The pr imary function of
insurance is to provide protection against financial losses caused by
unforeseen events. This pro tect ion is available to indiv iduals ,
businessmen and large companies alike.
Types of General Insurance
Health
• Individual Mediclaim
• Group Mediclaim
• Reliance Health Wise Policy
Personal Accident• Personal Accident
• Group Personal Accident
Fire
• Standard Fire and Special Perils
• Consequential Loss (Fire)
• Industrial All Risks
Engineering
• Erection All Risks/Storage-cum-Erection
• Contractor’s All Risks
• Contractor’s Plant and Machinery
• Machinery Breakdown Insurance
• Machinery Loss of Profits Insurance
• Boiler and Pressure Plant Insurance
• Electronic Equipment Insurance
Marine
• Marine Cargo Insurance
Motor
• Private Car Comprehensive
Liability
• Directors and Officers Liability• Public Liability (Act)
• Public Liability
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 42/61
• Product Liability
• Professional Indemnity
• Workmen’s compensation
Miscellaneous
• Industry Care
• Commercial Care
• Office Package
• Fidelity Guarantee
• Burglary and Housebreaking
• Money Insurance
• Householder’s Package
• Shopkeeper’s Package
Travel
• Individual and Family
• Asia
• Student
• Corporate
BASIC FEATURES
• Hospitalization Expenses
• Daycare Treatment
• Domiciliary Hospitalization
• Pre and Post Hospitalization
• Coverage of Pre-Existing Diseases
• Critical Illness Cover
• Donor Expenses
VALUE ADDED FEATURES
• Expenses of accompanying person at the Hospital
• Local Road Ambulance Services
• Recovery Benefit
• Cost of Health Check up
• Nursing Allowance
• Hospital Daily Allowance
POLICY FEATURES
• Income Tax Benefit
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 43/61
• Family Floater ( 1, 1+1, 1+2, 2+2 )
• Sum Insured
• Pre-insurance Health Check up
• Option in Policy Duration ( 1 & 2 years )• Renewal Discount
• Cashless Facility (Through Third Party Administrators - TPA)
• Age Slabs
Plan Details
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 44/61
(Source: web)
OBSERVATION & FINDINGS
To study the sales and distribution management and
improve the Customer Acquisition Process by analyzing
the consumer behavior, response and mindset towards
the product and services the company offers.
OBJECTIVE
• To find the market potential and market penetration of Reliance
Money product offerings in Bhubaneswar.
• To collect the real time information about preference level of
customers using Demat account and their inclination towards
various other brokerage f irms e.g. Indiabulls , Sharekhan,Indiainfoline, Religare, Alankit , Unicon.
• To expand the market penetration of Reliance money.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 45/61
• To provide pricing strategy of competitors to fight cut throat
competition.
• To increase the product awareness of Reliance money as single
window shop for investment solutions.
METHODOLOGY
We were supposed to operate from reliance money Nehru place
branch. We were made aware about all the products Reliance Money
was providing with a more stress on their core product i .e. Demat
account.
TARGETS
The time duration of the project is 2 months starting from 1 s t July
and ending on 30 t h August. We were given targets to be achieved
during training months. The targets of each month were:
• 3Demat Accounts
• 1SIP or Mutual Fund worth Rs10,000
• General Insurance Premium worth Rs50,000
• Life Insurance Premium worth Rs1,00,000
I was supposed to use the database provided by the company to
make cold calls or by directly meeting people to get new leads
The questionnaire used is attached in appendix A.1
While making cold calls, we need to have:
• Good Communicat ion Skil ls (Voice qual ity i s clear and
articulate)
• Persistent and able to bounce back from rejection
• Good organizational skills.• Abi li ty to project a te lephone pe rsonal ity (Enthusiasm,
friendliness)
• Flexibi l ity: can adapt to different types of clients and new
situations.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 46/61
Using a good database is very essential.
“ Eighty percent of our business comes from 20 percent of our
customers" is a frequent statement at any sales convention. There's
hardly a sales executive who is not aware of the 80/20 rule”.
While talking to customers, I analyze their needs. Whether they want
to go for investment purpose or insurance or both. Suggest them the
plan that best suits them. If they agree to it then eithe r we send across
the agents to close the deal or close it themselves .
Fig6.2 The Customers Sales Cycle
Problems faced while selling products:
• Customer dissatisfied with the services.
• People fear that Reliance Money Being a Private company and a
new entrant may be able to sustain or not.
• Insurance means LIC for people.
Fig6.1 The Constructive Factors of Tele calling
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 47/61
• Past experience, word of mouth.
• Misguidance by agents.
• People do not want i nsurance products.
• Lack of knowledge and awareness about general and l ifeinsurance.
• People risk appetite is very low, so they are afraid of mutual
fund as well.
• People relate the problems of mobi le phones of Rel iance
Communication with Reliance Money.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 48/61
SWOT ANALYSIS
Weakness
•
Inexperienced Staff • Low awareness due to lack
of advertisement.
• Lack of loyal clientage
• Developing product.
Strength
• Co-operative and
Experienced Branch
Managers
• Good Database
• Reliance Brand
• Low pricing
Opportunity
• Untapped Market
• Increased spending power
• Changing Mindset of
Customers
• Unpredictable Sensex
Threat
• Reach
• Stiff competition from
existing players in the
market
• Better products
Customer Acquisition Process
• Educate the prospects on the products and services.
• Customize the approach to each of the different customers
involved in the sales process.
• Establish a knowledge base for sales people, resel le rs and
partners.
• Ramp up the new salespeople more quickly and keep them on
road.
• Track the prospects as they move through the sales process.
• Harvest other types of information from your market to help the
company close business more quickly. The data of the prospectscan be used for research and development purpose.
• Enabling the consistent flow of information to the customer and
encouraging feedback from them.
• Helping the customers do the Financial Planning for future.
MY RESPONSIBILITY ORGANISATION:
I worked wi th Reliance money with a profi le of f inancial
advisor. This profile offers me to understand the need of the customer
and provide them the best deal possible with maximization of the
profit, both for the company as well as for the customer.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 49/61
The most important aspect for the role of financial advisor is trust.
So for fulfillment of the targets one needs to:
• Capital ize on old and loyal clientage which can be building
slowly by advising people in the best possible way.• Generating new leads through various activities.
Generation of leads:
Since I was new in this field so I had to start from the scratch
and generate new leads to sustain in the market.
Cold calling is one of the trusted ways of getting to the customers
without meeting them. Although the rate of conversion remained very
less. For cold calling the quality and accent remains a very important
criterion. This activity gave me mixed results. I often got success and
generated many leads through it but i t also landed me in awkward
position where the customer were in different mood and made us hea r
words for which a marketer should be always prepared to hear.
Corporate calls always remained more difficult to crack with respect
to retail sector.
The corporate were the most difficult and most tempting to get the business from. It took me one day to crack Hi-tech Gears.
At Reliance money after getting the product knowledge in the first
week at the branch I was also allotted distributor to work with. In the
initial phase I was accompanied by more experienced staff. After I
became known to the market and procedure I started attending calls
alone only.
After the third week my performance also improved and I wasable to get close to the targets, though it looked difficult to achieve in
the beginning. To get awareness of the every product I attended
diversified calls. This helped me to implement cross selling to get
better results.
Since the reliance money core product is Demat account more
stress was given over this. Demat account was also the most tempting
of all the products as it was difficult to convince the customer for the
rel iance Demat as i t was new and wi th many l imi tations. I t was
always d if ficult to convince on 1 paisa, as i t wasn’ t mentioned
anywhere in ink.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 50/61
LIMITATIONS:
1. Cold Calling
• Voice and accent plays a major role.
•
The r ight t ime to cal l a customer cannot be decided, as thecustomer may in a different mood at the time of calling.
• Time consuming
• Less success rate
2. Corporate
• Time consuming
• Contacts with higher authorities play a major role
LEARNINGS
• To get initial success in this field is very difficult. Although the
business generation becomes easier with time as we serve more
people who then get added up in the loyal clientage. Thus time
and service are two most factors to get in this field.
• Also the corporate remains a very important segment which gets
business in bulk bu t retail cannot be ignored which makes your
business ticking.• Customer remains in the pivotal position.
Findings
1. Preference of Investment
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 51/61
Interpretation: This shows that although the mutual funds market is on the
rise yet, the most favored investment continues to be in the Share Market. So, with
a more transparent system, investment in the Stock Market can definitely be
increased.
2. Awareness on Online Share Trading
Fig7.2 Result of Awareness of Online Share Trading
Interpretation: With the increase in cyber education, the awareness
towards online share trading has increased by leaps and bounds. This awareness is
expected to increase further with the increase in Internet education.
Fig7.1 Result of Preference of Investment
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 52/61
3. Awareness of Reliance Money as a Brand
Interpretation: This pie-chart shows that reliance money has a reasonable
amount of Brand awareness in terms of a premier Retail stock broking company.
This brand image should be further leveraged by the company to increase its
market share over its competitors.
4. Awareness of Reliance Money Facilities
Interpretation: Although there is sufficiently high brand equity among the
target audience yet, it is to be noted that the customers are not aware of the
facilities provided by the company meaning thereby, that, the company should
concentrate more towards promotional tools and increase its focus on product
awareness rather than brand awareness.
5. Satisfaction Level among Customers with current broker
Fig7.3 Result of Awareness of Reliance money as a Brand
Fig7.4 Result of Awareness of Reliance money Facilities
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 53/61
Fig7.5 Result of satisfaction level among customers with current broker
Interpretation: This pie-chart corroborate the fact that Strategic marketing,
today, has gone beyond only meeting Sales targets and generating profit volumes.
It shows that all the competitors are striving hard not only to woo the customers
but also to make them Brand loyal by generating customer satisfaction.
6. Frequency of Trading
Fig7.6 Result of Frequency of Trading
Interpretation: Inspite of the huge returns that the share market promises,
we see that there is still a dearth of active traders and investors. This is because of
the non – transparent structure of the Indian share market and the skepticism of
the target audience that is generated by the volatility of the stock market. It
requires efficient bureaucratic intervention on the part of the Government.
7. Percentage of earnings invested in Share Trading
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 54/61
Interpretation: This shows that people invest only upto 10% of their
earnings in the stock market, again reiterating the volatile and non-transparent
structure of the Indian stock market. Hence, effective and efficient steps should be
undertaken to woo the customers to invest more in the lucrative stock market .
CONCLUSION AND RECOMMENDATIONS
RECOMMENDATIONS
Fig7.7 Result of percentage of earning invested in share trading
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 55/61
Based on the findings of our project we would like to suggest the following:-
• After sales services and follow up calls are important for getting new
references so trained telesales should be appointed for this purpose whose
sole work should be to make feedback calls.
• Reliance is having too many financial products right from Demat account to
General Insurance and not all the salespeople are familiar with each and
every product so the work force should be segregated each group dealing in
a specific product and the sales target should be given likewise.
• While interacting with the investors I found that most of the customers are
unaware about the Mutual fund. Some of the people look upon mutual
funds and equity trading as gambling. Thus a mutual fund awareness
program can help to increase the penetration of mutual funds in the market.
• Reliance should declare in black ink that they will charge just 1 paisa per
transaction. People tend to think that there must be some hidden charges.
• Rs750 account opening charges are too high when targeting a corporate so
the company should be flexible on this amount.
• Reliance should provide periodic training for updating the product
knowledge of various financial advisors.
• Company should have a scheme of rewards and recognition to employees
and the field persons to boost their motivation.
KEY ISSUES AND CONCLUSIONS
Based on the above SWOT analysis and study of the available data I have cometo the following conclusions:
HUGE POTENTIAL:
• All though relatively new entrants in the market, Reliance is slowly but
surely gaining a strong hold because it is finally able to grasp the
investment climate in Delhi. Secondly the branch managers at all the
branches are very knowledgeable with a lot of experience in the financial
markets so under their leadership can definitely expand its base
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 56/61
• 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.
• Right now Reliance is at its nascent stage and will surely grab the major
market under its belt very soon like in other fields.
Huge investments taking place:
• The Stock Market has been very buoyant until now especially in the past 3
years. This particular trend is very favorable because a soaring SENSEX
means higher returns, which encourages the investors to invest their money
in the market. Although in the past 3 months the market has shown veryunpredictable trend and has already lost over 1000 points.
• So in order to make the best the only thing required is to recruit more field
staff who should be trained in a proper way to get better results.
• In case of insurance, it requires push selling because people always
associate it with emergencies and unpleasant situations like death and they
don’t want to think about such situation let alone prepare for them, which
means it requires a lot of conviction on part of the executives.
Large untapped market:
• People have just opened up to the idea of ULIPs because till now they knew
only two kinds of insurance plans, endowment and term plans so the
concept of high returns with protection is very new to them and slowly and
slowly these are becoming popular so there is a huge market waiting to be
tapped.
• In the past few years there has been a tremendous inflow of funds in the
Indian market which has lead to the sky rocketing SENSEX. In fact there
has been a tremendous response from the investors not only in shares but
mutual funds as well. The Rs5700Cr infused in the market through the
Reliance Equity mutual Funds is an example of the growing trust of
investors who earlier shied from such investments due to stock market
fiascos like the Harshad Mehta scam or the US64 disaster in whichinvestors lost huge amounts of money as well as their trust in financial
instruments.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 57/61
• With the FDI limits being relaxed, a lot of avenues will open up in the
insurance sector and insurance companies are expected to come up with
new plans with a great deal of customization and flexibility.
QUESTIONNAIREQ1. In which of these Financial Instruments do you invest into?
Shares Mutual Funds Bonds Derivatives
Q2. Are you aware of online Share trading?
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 58/61
Yes No
Q3. Heard about Reliance money?
Yes No
Q4. Do you know about the facilities provided by Reliance money?
Yes No
Q5. With which company do you have your DEMAT account?
Reliance money ICICI Direct Kotak Mahindra India Bulls
Others (please specify)
Q6. What differentiates your Share trading company from others? (in regards of
brokerage, satisfaction, services, products )
Q7. Are you currently satisfied with your Share trading company?
Yes No
Q8. How often do you trade?
Daily Weekly Monthly Yearly
Q9. What percentage of your earnings do you invest in share trading?
Up to 10% Up to 25% Up to 50% Above 50%
Q13. How do you rate these share trading companies?
1. 2. 3.
4. 5.
Q14. What more facilities do you think you require with your DEMAT account?
a. Reliance money b. ICICI Direct
c. India Bullsd. Kotak Mahindrae. Others (Please
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 59/61
Name:
Age:
Sex: Male Female
Phone No:
Occupation:
LIST OF FIGURES
FIGURETITLE PAGE
Personal Information
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 60/61
1.1
4.1
4.2
4.3
4.4
6.1
6.2
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
Investment Alternatives
Concept of mutual fund
Reliance Tax Saver (ELSS) Fund
Reliance Systematic investment plan
Reliance Growth fund – an open ended equity growthscheme
The Constructive Factors of Tele calling
The Customers Sales Cycle
Result of Prefence of Investment
Result of Awareness of Online Share Trading
Result of Awareness of Reliance money as a Brand
Result of Awareness of Reliance money Facilities
Result of satisfaction level among customers withcurrent broker
Result of Frequency of Trading
Result of percentage of earning invested in sharetrading
Result of Effectiveness of data
Result of Average no of Days to Complete process
4
13
23
23
24
45
46
52
53
53
54
55
55
56
57
59
BIBLOGRAPHY
• Agarwal, J.D. "Security Analysis & Portfolio Management: A Review,
Finance India, Vol. II No. 1, March 1989.
7/31/2019 17704886 Reliance Money Mann
http://slidepdf.com/reader/full/17704886-reliance-money-mann 61/61
• Bhatt, V. V. "An Appraisal Of Some Recent Estimates Of Savings and
Investments", ICRNI, Vol. 5, 1963.
• Douglas A. Hayes and W. Scott Bauman "Investments: Analysis and
Management" III Ed., 1976, MacMillan
• Malhotra, Naresh "Marketing Research and Applied Orientation" IV Ed.,
2005, Pearson
REFERENCES
• www.mutualfundsindia.com
• www.easymf.com
• www.amfiindia.com
• www.google.com
• www.moneycontrol.com
• www.valueresearchonline.com
• www.nseindia.com
• www.bseindia.com