Ek Dum Final

“A STUDY OF SERVICE PROLIPERATION AND

CUSTOMER SATISFACTION WITH SERVICES OFFERED

BY RELANCE MONEY IN GHAZIPUR CITY”

RESEARCH PROJECT REPORT

Submitted to

VEER BAHADUR SINGH PURVANCHAL UNIVERSITY, JAUNPUR

In partial fulfillment for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Prepared by: Under the supervision of:Prashant Kumar Singh Mr. Karunendra Pratap Singh B.B.A. 6th semester (Assistant Professor)Roll No. 00988 Department of Business Administration

2011

Department of Business AdministrationTechnical Education & Research Institute

Post-Graduate College, Ghazipur – 233001 (U.P.)

1

Certificate

This is certified that Prashant Kumar Singh, pursuing BBA 6th

Semester from this institute, has prepared the RESEARCH PROJECT

REPORT entitled “A Study of Service Proliferation & Customer

Satisfaction With Services Offered by Reliance Money in Ghazipur City”

in partial fulfillment of the requirements of the degree of Bachelor of

Business Administration from Veer Bahadur Singh Purvanchal University,

Jaunpur during the session 2011.

This report is based on survey project undertaken by Prashant

Kumar Singh under my supervision of during the course of sixth semester

and fulfills the requirement of regulations relating to the nature and standard

of BBA course of V.B.S. Purvanchal University.

I recommend that this project report may be sent for evaluation.

Rahul Anand Singh Karunendra Pratap Singh

Reader & Head, (Assistant Lecture)

Dept. of Business Administration Dept, of Business Administration

2

Declaration

I Prashant Kumar Singh, hereby declare that this

project report entitled “A Study of Service Proliferation and

Customer Satisfaction with Services Offered by Reliance

Money In Ghazipur City” has been prepared by me on the basis

of survey done during the course of my sixth semester of BBA

programme under the supervision of Mr. Karunendra Pratap

Singh, Assistant professor, Department of Business

Administration, TERI, Ghazipur.

This Research Project Report is my bona fide work and has

not been submitted in any form to any University or Institute for

the award of any degree or diploma prior to the under mentioned

date. I bear the entire responsibility of submission of this project

report.

Prashant Kumar Singh B.B.A. 6th Semester

Department of Business AdministrationTechnical Education & Research Institute

P.G. College Ghazipur

3

Index of Contents

Page No.

Preface [1-4]

Acknowledgements [5]

Chapter – 1

Introduction to the Organization [6-11]

Organizational Structure [12-14]

Product & Services offered by the company [15-57]

Chapter – 2

Objectives of the study [60-61]

Importance of the study [62]

Scope of the study [63]

Chapter – 3

Research Methodology [64-68]

Chapter – 4

Data analysis & Interpretation [69-95]

Chapter – 5

Findings & Recommendations [96-104]

4

Chapter – 6

Conclusion & Limitations [105-107]

Annexure [108-112]

Bibliography & References [113-114]

5

Preface

The project is carried out to translate the theoretical knowledge of subject into

the practical field work. This project is too carried out in partial fulfillment of BBA sixth

Semester Course from “Technical Education & Research Institute” Ghazipur.

Today investment has become a problem for ordinary people. It creates so many

doubts in the mind of investor. The company is offering many types of financial products

like Demat Accounts, Mutual Funds & Life Insurance. It has also launched the services

which are provided by the company after the sales of the financial product known as After

Sales Services.

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 AMC 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.

Reliance is conducting investor awareness campaigns every Saturday at Reliance

money centers. An Investment Product 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

6

holders in proportion to the number of units owned by them. Thus financial products 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.

Customer satisfaction is a measure of how products and services supplied by a company

can meet the customer expectations.

Customer satisfaction is still one of the single strongest predictors of customer retention.

It’s considerable more expensive to attract new customers than it is to keep old ones

happy. In a climate of decreasing brand loyalties, understanding customer service and

measuring customer satisfaction are very crucial.

There is obviously a strong link between customer satisfaction and customer retention.

Customer’s perception of Service and Quality of product will determine the success of the

product or service in the market.

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 future

progress and improvement. Customer satisfaction measurement helps to promote an

increased focus on customer outcomes and stimulate improvements in the work practices

and processes used within the company.

Customer expectations are the customer-defined attributes of your product or

service you must meet or exceed to achieve customer satisfaction.

There are many reasons why customer expectations are likely to change over time.

Process improvements, advent of new technology, changes in customer’s priorities,

improved quality of service provided by competitors are just a few examples.

This survey has been conducted to get an overview of the “A Study of Service

Proliferation & Customer Satisfaction Offered by Reliance Money in Ghazipur

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City”. The main purpose of the study is to know the expectations of those investors who

invested in Reliance Money and the satisfaction levels of investors with the services

provided by the Reliance Asset Management Company Ghazipur. The objectives are

predefined and the task is to accomplish them.

The study was confined geographically to Ghazipur. The potential respondents are

the consumers, who have commercial use for the financial product. The whole process

during the report is well planned; the primary data collection is done from the

respondents.

The project report is divided in to 6 chapters. The first chapter includes the

introduction to the organization, organizational structure, the products and services

offered by the company. The second chapter includes the objective of the study,

importance of the study and scope of the study. The third chapter includes the research

methodology. In this report descriptive kind of research is done. The fourth chapter

includes the data analysis & interpretation. The fifth chapter includes the findings and

recommendation. The sixth chapter includes the conclusions & limitations, annexure and

bibliography and references.

8

Acknowledgement

Sometimes words fall short to show gratitude, the same happened with me during

this project. The immense help and support received from Reliance Money Limited

overwhelmed me during the project. 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 a deep sense of gratitude to my beloved Head

of Department Mr. Rahul Anand Singh (Technical Education & Research Institute Post

Graduate College, Ghazipur) who has given me an opportunity to prepare my project

report in Reliance Money Ltd.

I would also like to thanks Mr. Karunendra Pratap Singh, & Mr. Arif Sultan

the Assistant Professor of “Technical Education & Research Institute’’ Ghazipur, who

supported me during the completion of project report and gave all valuable suggestion

which made my report effective.

My special thanks to my friends who being a part of the same internship,

supported me throughout my internship and with whose help I could complete my work

efficiently and effectively. Their consistent help kept me motivated and going.

PRASHANT KUMAR SINGH

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CHAPTER – 1

Introduction to the Organization

Organizational Structure

Product & Services offered by the company

10

Brief History

Our Founder

Reliance Money, a Reliance Capital company and part of the Reliance Anil Dhirubhai

Ambani Group is a comprehensive financial services and solution provider. 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

over3millionexistingcustomers.

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

11

General Insurance products and Gold Coins. Customers can also avail Loans, Credit

Card, Money Transfer and Money Changing services.

Reliance Capital is one of India's leading and fastest growing private sector

financial services companies, and ranks among the top 3 private sector financial services

and banking groups, in terms of net worth.

Reliance Money is a single window, enabling you to access, amongst others in

Equities, Equity & commodities Derivatives, Mutual Funds, IPOs, Life & General

Insurance Products, Offshore Investments, Money Transfer, Money Changing and credit

cards

Reliance capital Ltd (RCL) is a registered as a depository participant with

National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL)

under the Securities and Exchange Board of India (Depositories and Participants)

Regulations, 1996. RCL has sponsored the Reliance Mutual Fund within the framework

of the Securities and Exchange Board of India (Mutual Fund) regulations, 1996.

RCL primarily focuses on funding projects in the infrastructure sectors and

supports the growt5h of its subsidiary companies, Reliance Capital Asset Management

Limited, Reliance Capital Trustee Co. Limited, Reliance General Insurance Company

Limited an Reliance Life Insurance Company Limited.

As of March 31, 2005, the company’s investment in infrastructure projects stood

at Rs. 1071 Crores. The investment portfolio of RCL is structured in a way that realizes

the highest post tax.

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Chairman’s Profile

Our Chairman’s Vision

“We live in a world where the young are reaching higher, dreaming bigger and

demanding more; a world that is challenging the limits of hope and possibility.”

Regarded as one of the foremost corporate leaders of contemporary India, Shri

Anil Dhirubhai Ambani is the chairman of all listed companies of the Reliance ADA

Group, namely, Reliance Communications, reliance Capital, Reliance Energy, Reliance

Natural Resources and Reliance Power.

He also chairman of the board of Governors of Dhirubhai Ambani Institute of

Information and Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director in Reliance

Industries Limited (RIL), India’s largest private sector enterprise.

Anil Dhirubhai Ambani Joined Reliance in 1983 as Co- Chief Executive Officer,

and was centrally Involved in every aspect of the company’s management over the next

22 years.

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Business Overview

Reliance Capital has a interests in asset management and mutual fund, life and

general insurance, private equity and proprietary investments, stock broking, depository

services, distribution of financial of financial products, consumer finance an other

activities in financial services. Reliance Mutual fund is India’s no. 1 Mutual fund.

Reliance Life Insurance is India’s fastest growing life insurance company and among the

top 4 private sector insures. Reliance General Insurance is India’s fastest growing general

insurance company and the top 3 private sector insurers. Reliance Money is the largest

brokerage and distribution network. Reliance Customer finance has a loan book of over

Rs. 8,000 crores at the end of June 2008. Reliance Capital has a net worth of Rs. 6,862

crores (USS 1.6 billion) and total assets of Rs. 19,940 crores (USS 4.6 billion) as of June

30, 2008 and over 26,000 employees.

Money has increased its market share among private financial companies to nearly

Convenient & effective – Anytime & anywhere financial transaction capability, Launched

in April 2007. It provides the Flat fees system. It has 2.2 million customers in 1 year of

official launch. It has over 5,000 outlets across 700 towns/cities, Average daily turnover –

in excess of Rs. 2,000 crores.

14

15


16


Organization Hierarchy

National Level : National Head

Zonal Level : Zonal Head

Regional Level : Regional head

Divisional Level : Cluster Head

Branch Level : Centre Manager

Area Level : Business Development Executives & Freelancers

17

18

National Head

ZonalHead

ZonalHead

Zonal Head

ZonalHead

RegionalHead

RegionalHead

RegionalHead

ClusterHead

ClusterHead

Centre Manage

r

Centre Manage

r

BDEs BDEs BDEs BDEs BDEs

RegionalHead

Products & Services Offered By the Company

Reliance Money provides 3 types of financial products. They are-

1. Mutual Funds

2. Life Insurance

3. Demat Account

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Mutual Funds

20

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. 470bn in March 1993 and till April 2004; it reached the height of

1,540bn.

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 intellectual 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

21

can be broadly put into four phases according to the development of the sector. Each

phase is briefly described as under.

Mutual Funds

Before we understand what is mutual fund, it’s very important to know the area in

which mutual funds works, the basic understanding of stocks and bonds.

Stocks: Stock represents shares of ownership in a public company. Examples of public

companies include Reliance, ONGC and Infosys. Stocks are considered to be the most

common owned investment traded on the market.

Bonds : Bonds are basically the money which you lend to the government or a company,

and in return you can receive interest on your invested amount, which is back over

predetermined amounts of time. Bonds are considered to be the most common lending

investment traded on the market. There are many other types of investments other than

stocks and bonds (including annuities, real estate, and precious metals), but the majority

of mutual funds invest in stocks and/or bonds.

What Is Mutual Fund

A mutual fund is just the connecting bridge or a financial intermediary that allows

a group of investors to pool their money together with a predetermined investment

objective. The mutual fund will have a fund manager who is responsible for investing the

gathered money into specific securities (stocks or bonds). When you invest in a mutual

22

fund, you are buying units or portions of the mutual fund and thus on investing becomes a

shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare

to others they are very cost efficient and also easy to invest in, thus by pooling money

together in a mutual fund, investors can purchase stocks or bonds with much lower

trading costs than if they tried to do it on their own. But the biggest advantage to mutual

funds is diversification, by minimizing risk & maximizing returns.

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

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Overview of existing schemes existed in mutual fund category:-

Wide variety of Mutual Fund Schemes exists to cater to the needs such as

financial position, risk tolerance and return expectations etc. The table below gives an

overview into the existing types of schemes in the Industry.

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Type of Mutual Fund Schemes

BY STRUCTURE

Open Ended Schemes

An open-end fund is one that is available for subscription all through the year.

These do not have a fixed maturity. Investors can conveniently buy and sell units at Net

Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

25

Close Ended Schemes

A closed-end fund has a stipulated maturity period which generally ranging from

3 to 15 years. The fund is open for subscription only during a specified period. Investors

can invest in the scheme at the time of the initial public issue and thereafter they can buy

or sell the units of the scheme on the stock exchanges where they are listed. In order to

provide an exit route to the investors, some close-ended funds give an option of selling

back the units to the Mutual Fund through periodic repurchase at NAV related prices.

SEBI Regulations stipulate that at least one of the two exit routes is provided to the

investor.

Interval Schemes

Interval Schemes are that scheme, which combines the features of open-ended and

close-ended schemes. The units may be traded on the stock exchange or may be open for

sale or redemption during pre-determined intervals at NAV related prices.

BY NATURE

Under this the mutual fund is categorized on the basis of Investment Objective. By

nature the mutual fund is categorized as follow:

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1. Equity fund:

These funds invest a maximum part of their corpus into equities holdings. The

structure of the fund may vary different for different schemes and the fund manager’s

outlook on different stocks. The Equity Funds are sub-classified depending upon their

investment objective, as follows:

Diversified Equity Funds

Mid-Cap Funds

Sector Specific Funds

Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high

on the risk-return matrix.

2. Debt funds:

The objective of these Funds is to invest in debt papers. Government authorities,

private companies, banks and financial institutions are some of the major issuers of debt

27

papers. By investing in debt instruments, these funds ensure low risk and provide stable

income to the investors. Debt funds are further classified as:

Gilt Funds: Invest their corpus in securities issued by Government, popularly

known as Government of India debt papers. These Funds carry zero Default risk

but are associated with Interest Rate risk. These schemes are safer as they invest

in papers backed by Government.

Income Funds: Invest a major portion into various debt instruments such as

bonds, corporate debentures and Government securities.

MIPs: Invests maximum of their total corpus in debt instruments while they take

minimum exposure in equities. It gets benefit of both equity and debt market.

These scheme ranks slightly high on the risk-return matrix when compared with

other debt schemes.

Short Term Plans (STPs): Meant for investment horizon for three to six months.

These funds primarily invest in short term papers like Certificate of Deposits

(CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested

in corporate debentures.

Liquid Funds: Also known as Money Market Schemes, These funds provides

easy liquidity and preservation of capital. These schemes invest in short-term

instruments like Treasury Bills, inter-bank call money market, CPs and CDs.

These funds are meant for short-term cash management of corporate houses and

are meant for an investment horizon of 1day to 3 months. These schemes rank low

on risk-return matrix and are considered to be the safest amongst all categories of

mutual funds.

28

Balanced funds:

As the name suggest they, are a mix of both equity and debt funds. They invest in

both equities and fixed income securities, which are in line with pre-defined investment

objective of the scheme. These schemes aim to provide investors with the best of both the

worlds. Equity part provides growth and the debt part provides stability in returns.

Further the mutual funds can be broadly classified on the basis of investment

parameter viz,

Each category of funds is backed by an investment philosophy, which is pre-

defined in the objectives of the fund. The investor can align his own investment needs

with the funds objective and invest accordingly.

BY INVESTMENT OBJECTIVE

Growth Schemes: Growth Schemes are also known as equity schemes. The aim

of these schemes is to provide capital appreciation over medium to long term.

These schemes normally invest a major part of their fund in equities and are

willing to bear short-term decline in value for possible future appreciation.

29

Income Schemes: Income Schemes are also known as debt schemes. The aim of

these schemes is to provide regular and steady income to investors. These

schemes generally invest in fixed income securities such as bonds and corporate

debentures. Capital appreciation in such schemes may be limited.

Balanced Schemes: Balanced Schemes aim to provide both growth and income

by periodically distributing a part of the income and capital gains they earn. These

schemes invest in both shares and fixed income securities, in the proportion

indicated in their offer documents (normally 50:50).

Money Market Schemes: Money Market Schemes aim to provide easy liquidity,

preservation of capital and moderate income. These schemes generally invest in

safer, short-term instruments, such as treasury bills, certificates of deposit,

commercial paper and inter-bank call money.

OTHER SCHEMES

Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under

tax laws prescribed from time to time. Under Sec.88 of the Income Tax Act,

contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for

rebate.

Index Schemes: Index schemes attempt to replicate the performance of a

particular index such as the BSE Sensex or the NSE 50. The portfolio of these

schemes will consist of only those stocks that constitute the index. The percentage

of each stock to the total holding will be identical to the stocks index weightage.

And hence, the returns from such schemes would be more or less equivalent to

those of the Index.

Types of returns:

30

There are three ways, where the total returns provided by mutual funds can be

enjoyed by investors:

Income is earned from dividends on stocks and interest on bonds. A fund pays out

nearly all income it receives over the year to fund owners in the form of a

distribution.

If the fund sells securities that have increased in price, the fund has a capital gain.

Most funds also pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the fund's

shares increase in price. You can then sell your mutual fund shares for a profit.

Funds will also usually give you a choice either to receive a check for

distributions or to reinvest the earnings and get more shares.

Pros & cons of investing in mutual funds:

For investments in mutual fund, one must keep in mind about the Pros and cons of

investments in mutual fund.

Advantages of Investing Mutual Funds:

1. Professional Management - The basic advantage of funds is that, they are

professional managed, by well qualified professional. Investors purchase funds because

they do not have the time or the expertise to manage their own portfolio. A mutual fund is

considered to be relatively less expensive way to make and monitor their investments.

2. Diversification - Purchasing units in a mutual fund instead of buying individual stocks

or bonds, the investors risk is spread out and minimized up to certain extent. The idea

behind diversification is to invest in a large number of assets so that a loss in any

particular investment is minimized by gains in others.

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3. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time,

thus help to reducing transaction costs, and help to bring down the average cost of the

unit for their investors.

4. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate

their holdings as and when they want.

5. Simplicity - Investments in mutual fund is considered to be easy, compare to other

available instruments in the market, and the minimum investment is small. Most AMC

also have automatic purchase plans whereby as little as Rs. 2000, where SIP start with

just Rs.50 per month basis.

.

Mutual Funds Industry in India

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) was Rs. 67bn. The private sector

entry to the fund family raised the AUM to Rs. 470 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 intellectual with the

32

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 regulatory and

administrative control in place of RBI. The first scheme launched by UTI was Unit

Scheme 1964. At the end of 1988 UTI had Rs.67, 00 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

Canbank 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), LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under

management.

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.

33

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.

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.

34

MUTUAL FUND STRUCTURE

Sponsor Establishes the Mutual Fund Managed by the board

Company as a trust and registers with of trustees

Mutual Fund Hold unit holders funds in mutual fund.

(For e.g. Reliance AMC) Enters into an agreement with SEBI

Asset Floats mutual funds as per the regulations

Management of SEBI regulations

Custodian provides custodial services

Registrar Provides registrar and transfer services

Provides the network for

Distributor distribution of schemes to

The investors

35

Organization of a Mutual Fund

There are many entities involved

Mutual funds in INDIA have a 3-tier structure of Sponsor – Trustee – AMC.

Sponsor creates the AMC and the trustee company and appoints the Boards of

both these companies, with SEBI approval.

A trust deed is signed by trustees and registered under the Indian Trust Act.

The mutual fund is formed as 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.

Sponsor should contribute at-least 40% of the capital of the AMC.

Trustees are appointed by the sponsor with SEBI approval.

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.

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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.

Regulatory Structure of Mutual Funds in India

The regulation of mutual funds in India is governed by 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 obligation 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

contribute to the 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

Fund in India (AMFI) is a self- regulatory body formed by the various MF Companies to

address the practices and policies of various aspects like 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.

37

Reliance Life Insurance

38

Reliance Life Insurance

Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part

of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading

private sector financial services companies, and ranks among the top 3 private sector

financial services and banking companies, in terms of net worth. Reliance Capital has

interests in asset management and mutual funds, stock broking, life and general

insurance, proprietary investments, private equity and other activities in financial

services.

Basics of Life Insurance

What is Life Insurance?

An amount of money paid to someone (called beneficiary) when the Life Assured

(in whose name the insurance policy is taken) dies. This amount can be used to pay the

expenses related to Life assureds death or can be invested to generate income that will

replace your salary. Life Insurance is an important tool in any investors portfolio & can

be use for- wealth creation, asset building, provide for contingencies and retirement

planning.

Types of Life Insurance Policies

Most Insurance policies are a combination of Savings & Protection.

Products are formulated by either increasing or decreasing either one of these

components.

These combinations can be broadly divided into 4 groups

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- ULIPs

- Term Insurance

- Endowment Policies : Whole Life; Unit Linked etc

- Annuities & Pension

Systematic Investment plans (SIP) – For regular investment

SIP is investing a fixed sum periodically in a disciplined manner for long term. It

gives benefit of Rupee Cost averaging.

In SIP monthly minimum Rs. 500 or Rs. 100 are invested.

Interest is calculating compoundly.

Many SIPS gives insurance benefits.

VAP is modified version of SIP. It is Voluntary Accumulation Plan. It allows the

investor flexibility with respect to the amount and frequency of investment In

VAP; investor has to impose voluntary self discipline.

Systematic Withdrawal Plan (SWP)- For regular income

The lump sum amount is invested for one time and then fixed percent amount is

withdrawn monthly.

Protection Plans

Protect your family even when you’re not around by investing in Reliance Protection

Plans. Choose a limited period plan or a lifetime protection plan depending on your

needs. The latest Protection Plans are as below…

1. Reliance Term plan

2. Reliance Special Term plan

40

3. Reliance Credit Guardian plan

4. Reliance Endowment plan

5. Reliance Connect 2 Life plan

6. Reliance Whole Life plan

7. Reliance Wealth + Health plan

Savings & Investment Plans

Reliance Savings & Investment Plans help you to set aside some money to achieve

specific goals in life, which means that you can enjoy life and provide for your family’s

daily needs. The savings and investment plans are as below…

1. Reliance Total Investment Plan Series I – Insurance


3. Reliance Automatic Investment Plan

4. Reliance Money Guarantee plan

5. Reliance Cash Flow plan

6. Reliance Market Return plan

7. Reliance Endowment plan

8. Reliance Whole Life plan

9. Reliance Golden Years Plan

10. Reliance Connect 2 Life plan

Retirement Plan today Reliance Retirement Plans and save money to enjoy life even after retirement. You

41

will never have to depend on another person or make any compromises to maintain your

current lifestyle. The latest Retirement Plans are as below…

1. Reliance Total Investment plan series II – Pension

2. Reliance Golden Years Plan

3. Reliance Golden Years Plan Value

4. Reliance Golden Years Plan Plus


6. Reliance Automatic Investment Plan

7. Reliance Money Guarantee Plan

Child Plans

Save systematically a secure your secure child’s future needs by investing in Reliance

Child Plans You can always be there for your child when he or she needs you. The Childs

plans are as below…

1. Reliance Child plan

2. Reliance Secure Child plan


Market Return Plan

Under This plan the investment risk in the investment portfolio is borne by the

policyholder.

Key features

Twin benefit of market linked return and insurance protection

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A unit linked plan, different from traditional life insurance products with

maximum maturity age of 80 years.

Option to create your own portfolio depending on your risk appetite.

Choose from four different investment funds

Flexibility to switch between funds

Option to pay regular as well as single premium & top –ups

Option to packages your policy with accidental rider

Flexibility to increase the sum assured

Liquidity through partial withdrawals

How does this plan work?

The premium paid by the client net of premium allocation charges is invested in

fund/funds of your choice and units are allocating on the price of units for the fund/funds.

The fund value is the total value of units that you hold in the fund/funds. The mortality

charges and policy administration charges are ducted through cancellation of units

whereas the fund management charge is priced in the unit value.

What are the different fund options?

We understand the value of your hard earned money and in our Endeavour to help

you grow your wealth, we offer you 4 different tailor-made investment funs. You have

the option to allocate your premium in these funds as you wish.

They are:

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1. Capital Secure Fund

The investment objective of this fund is to maintain the value of contributions (net

of charges) and all interest additions. This fund offers steady return for little risk. The

risk profile of this fund is low. Investments would be 100% in bank deposits,

government bonds and debt instruments that offer financial security.

Further, allocation in Capital Secure Fund for a policy is subject to a maximum limit of

40% at any time.

2. Balanced Fund

The investment objective of this fund is to provide you with investment returns, which

exceed the rate of inflation in the long term while maintaining a low probability of

negative investment returns. Here, a major portion of your funds are invested in Fixed

Securities while a small percentage is invested in the equity market, which is exposed to

market movement. The risk profile of this fund is low to medium.

Investments would be at least 80% in fixed interest securities and maximum 20% in

equities.

3. Growth Fund

The investment objective of this fund is to provide you with investment returns, which

exceed the rate of inflation in the long term while maintaining a moderate probability of

negative investment returns. A greater portion of your funds are invested in fixed

44

securities while a small percentage is invested in the equity market, which exposed to

market movements. The risk profile of this fund is medium to high.

4. Equity Fund

The investment objective of this fund is to provide policyholders with high exposure

to equities and the possibility of investment returns, which generate a high real rate o

return in the long term while recognizing that there is a significant probability of negative

investment returns in the short term. This fund offers a totally equity based investment

option. Your returns depend entirely upon the performance of the equity market. The risk

profile of this fund is high. The higher risk of this portfolio means that expected returns

would also be higher.

Investment would not exceed 30% in bank deposits and may be up to 100% in

equities.

Who can buy the product?

Minimum age at entry 30 days

Maximum age at entry 65 days

Maximum age at maturity 80 days

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What is the policy term?

Minimum policy term 5 years

Maximum policy term 40 years

Flexible premium payment modes:

Choose from five premium payment mode.

a) Annual – minimum premium is Rs. 10,000.

b) Half – yearly – minimum premium is Rs. 5,000.

c) Quarterly – minimum premium is Rs. 2,500.

d) Monthly – minimum premium is Rs. 1,000.

e) Single premium – minimum premium is Rs. 25,000.

Charges under the plan:

1. Premium allocation charge

46

For regular premium policies Term of the policy s below

Years 5-9 10-14 15+

First year 10% 15% 20%

Thereafter 5% 5% 5%

(The premium allocation charge for single premium & top – ups is 2%).

2. Policy Administration charges:

Rs. 40 will be deducted from your unit account each month.

3. Fund Management Charges:

(The fund management charges will be deducted on a daily basis).

Unit Linked Funds Annual Rate

Capital Secure` 1.50%

Balanced Fund 1.50%

Growth Fund 1.75%

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Equity Fund 1.75%

Revision of charges:

The fund management charges are subject to revision at any time, but they will

not exceed 2% p.a. for the capital secure fund and 2.5% p.a. for the other funds.

Any changes made to the charges under this policy will be subject to IRDA approval.

4. Partial Withdrawal Charges:

Rs. 100 per withdrawal will be deducted from your unit account.

5. Switching Charge:

1% of the amount switched, with a maximum of Rs. 1,000/- per switch.

6. Mortality Charges:

The Mortality charges, based on your attained age, are determined using 1/12 th of the

charges are different.

7. Surrender Charge:

The charge is levied on the unit fund at the time of surrender of the policy as under:

Number of years premiums paid Surrender charge as percentage of fund value

Less than 1 100%

1 50%

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2 20%

3 and more NIL

Service Tax Charge:

This charge will be levied on morality, accident & disability benefit charges. The

level of this charge will be as per the rate of service tax on risk premium levied by the

government from time to time the correct rate of service tax is 12.36% this charge shall

be collected along with charges.

49

Reliance Demat Accounts

50

Overview of 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 stock broker.

This account is popular in India. The Securities and Exchange Board of India

(SEBI) mandates a Demat account for share trading above 500 shares. As of April 2006,

it became mandatory that any person holding a Demat account should possess a

Permanent Account Number (PAN), and the deadline for submission of PAN details to

the depository lapsed on January 2007.

Procedure

1. Fill Demat request form (DRF) (obtained from a depository participant or DP with

whom your depository account is opened).

2. Deface the share certificate(s) you want to dematerialize by writing across

Surrendered for dematerialization.

3. Submit the DRF & share certificate(s) to DP. DP would forward them to the

issuer/ their R&T Agent.

4. After dematerialization, your depository account with your DP, would be credited

with the dematerialized securities.

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Reliance Money Demat Account Services

Reliance Money – Transacting and investing simplified.

Get ready to change the way you transact and invest in financial products and services.

Whether you wish transact in equity, equity & commodity derivatives, IPO’s offshore

investments or prefer to invest in mutual funds, life & general insurance products or avail

money transfer and money changing services, you can do it all through reliance money.

Simply open a reliance money account and enjoy the convenience of handling all your

key financial transactions through this one window.

Benefits of having a Reliance Money Account

It’s cost effective

You pay comparatively lower transaction fees. As an introductory offer, we invite you to

pay a flat fee of just Rs. 500/- and 750/- and transact through reliance money. This fee is

valid for two months or a specified transaction value.

See the table below for details.

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Its offers single – window access

Through reliance money’s associates, you can transact in equity, equity and commodities

derivatives, offshore investments mutual funds, IPO’s life insurance, general insurance,

money transfer, money changing and credit cards, amongst others.

It’s convenient

You can access reliance money’s services through

The internet

Transaction kiosks

The phone (call & transact)

Our all- India network of associates

On an assisted trade (through the call centre or our network of associates) a charge of Rs.

12 per executed will be applicable.

It’s Safe

Your account is safeguarded with a unique security number that changes every 32

seconds. This number works as a dynamics password to keep account extra safe.

Its provides you a Demat account

You get your own Demat account with reliance capital at an annual fee of just Rs. 50/-

Its provides you a 3-in-1 facility

You can access your banking, trading and Demat account through a single window and

transfer funds across accounts seamlessly.

It provide you value –added services

At www.reliancemoney.com, you get

Reliable research, including views of external experts with an enviable track

record

Live new updates from Reuters and Dow Jones

53

http://www.reliancemoney.com/

CEO’s / expert views on the economy and financial markets

Tools that help you plan your investments, tax, retirement, etc. in the personal

finance section

Risk Analyzer for analysis of your risk profile

Asset allocators to build an appropriate investment portfolio

Innovative use of technology for facilitating convenient trading/investments –

kiosks (similar to ATM’s).

Reliance Money Provide the Kiosks (Similar to ATM’s) Facilities, to their customer

through which the customers can trade on available kiosks at the particular Branch of

Reliance money. The company is going to open these kiosks in the market as the ATM’s

of the Banks.

Reliance Money provides 3 different trading platforms for equity trading:

Insta Trade

Fast Trade

Easy Trade

The benefits

A safe and convenient way to hold securities;

Immediate transfer of securities;

No stamp duty on transfer of securities;

Elimination of risks associated with physical certificates such as bad delivery,

fake securities, delays, thefts etc.;

Reduction in paperwork involved in transfer of securities;

Reduction in transaction cost;

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No odd lot problem, even one share can be sold;

Nomination facility;

Change in address recorded with DP gets registered with all companies in which

investor holds securities electronically eliminating the need to correspond with

each of them separately;

Transmission of securities is done by DP eliminating correspondence with

companies;

Automatic credit into Demat account of shares, arising out of

bonus/split/consolidation/merger etc.

Holding investments in equity and debt instruments in a single account.

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SWOT ANALYSIS OF RELIANCE MONEY

Here is the SWOT analysis of the Reliance Money, which represents the strengths,

weaknesses, opportunities and threats faced by the company. The strengths and

weaknesses are found with the help of the strategic Advantage Profile (SAP) of the

company. SAP studies the internal environment of the company thus, studies the

following area i.e. Finance, H.R., Marketing, Production and R & D. The opportunities

and threats faced by the company found out with the help of Environmental Threat

Opportunity Profile (ETOP). ETOP studies the external environment of the company,

which is economical, legal, political, technical & regulatory.

Strengths:-

Enjoy a high degree of mutual funds awareness an company profile.

Strong distribution network.

Diversified company.

The management of the company consists of highly qualified persons.

Good research and development facilities.

Strong financial backup.

Weaknesses:-

There are too much plans existing in the market that create confusion among the

consumers.

Less Choice with the funds.

Opportunities:-

Vast untapped market.

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High advertisements can create more demand for reliance mutual funds.

Reliability of common Indians due to domestic company also provide opportunity

to Reliance Money.

Government is promoting mutual funds sector.

Sales of mutual funds are increasing day by day thus providing opportunity for the

company to increase the sales in the market.

Threats:-

Government controlled State Bank of India (SBI Morgan) will give very tough

competition.

Existing companies such as- IDBI UTI etc.

Threats from new entrants.

Threats from governmental policies.

In present scenario World Economy Recession (Sub Prime Crisis) also create

uncertainty about mutual funds market as well as related companies.

57

CHAPTER – 2

Objective, Importance & Scope of the study

58

Objectives of the study

The main purpose of the study is to know the expectations of those investors who

invested in Reliance Money and the satisfaction levels of investors with the services

provided by the Reliance Asset Management Company Ghazipur.

Here the main purpose of the survey is to know the various factors that are very important

in satisfying the customer’s needs and to know how Reliance Money is ensuring its

customers satisfaction.

The expectations of customers are vary from one customer to the other customer. It is

very difficult to any business firm to satisfy all the expectations of all customers but there

are some common factors that are essential to fulfill.

The following are the objectives of the project report

To understand the different investment options provided by Reliance Money

through its marketing schemes.

To know the investor’s expectations on Investment Products offered by Reliance

Money Ltd.

To study the satisfaction levels of customers in Reliance Money.

To identify how the brand building helps in meeting the customers’ expectations

to meet their investment objectives

To know the various services provided by Reliance AMC to its investors

59

Importance of the study

The importance of a project report is following.

The study will help to know that what additional features & what facilities should

be increase.

Customer is satisfied with the services provided by Reliance Money or he is

dissatisfied.

It helps in identify reason behind dissatisfactions.

The importance of project study is that it is helpful to make future policy of the

company.

It is important to create a new plan for financial products & services in future with

unique quality & facilities that will be preferred by the customer.

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Scope of the study

The scope of this research is the study the services of the company. It covers a

wide range analysis of the company that what kind of services has been provided by the

company, what are the qualities of products, what are the satisfaction level of the

customer by the service of the company, working process of the company, How the

company satisfy the customer by its services.

This study also shed light on the relationship of company with customers. The

study also covers the behavioral pattern of company employees with the customer at the

time of complains for any financial product and how they provide service to them.

The response of the centre towards the customer also covered in this study. After

analysis the researcher comes to know that the customer response centre gives good

response to each and every complaint and do its best of satisfy the customers by its

service. The main scope of the study is Reliance Money investors in Ghazipur city.

61

CHAPTER – 3

Research Methodology

62

Research Methodology

Research in a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, infect research is an art of

scientific investigation. Research Methodology is a scientific way to solve research

problem. It may be understood as a science of studying how research is don’t

scientifically. In it we study various steps that are generally adopted by researchers in

studying their research problem. It is necessary for researchers to know not only research

method techniques but also technology. The scope of Research Methodology is wider

than that of research methods.

The research problem consists of series of closely related activities. At times, the first step

determines the native of the last step to be undertaken. Why a research has been defined,

what data has been collected and what a particular methods have been adopted and a host

of similar other questions are usually answered when we talk of research methodology

concerning a research problem or study. The project is a study where focus is on the

following points:

Research Design:-

A research design is defined, as the specification of methods and procedures for acquiring

the Information needed. It is a plant or organizing framework for doing the study and

collecting the data. Designing a research plan requires decisions all the data sources,

research approaches, Research instruments, sampling plan and contact methods. The

study was descriptive kind of research.

63

Research design is mainly of following types:

1. Exploratory research.

2. Descriptive studies

3. Causal studies/Experimental studies

1. Exploratory research:-

The major purposes of exploratory studies are the identification of problems, the more

precise Formulation of problems and the formulations of new alternative courses of

action. The design of exploratory studies is characterized by a great amount of flexibility

and ad-hoc veracity.

2. Descriptive research:-

Descriptive research in contrast to exploratory research is marked by the prior

formulation of specific research Questions. The investigator already knows a substantial

amount about the research problem. Perhaps as a Result of an exploratory study, before

the project is initiated. Descriptive research is also characterized by a Preplanned and

structured design.

3. Causal studies/Experimental studies

A casual design investigates the cause and effect relationships between two or more

variables. The hypothesis is tested and the experiment is done. There are following types

of casual designs

a. After only with control design

b. Before after with control design

c. Before after without control design

d. Consumer panel design

e. Ex-post facto design

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Research Design has been classified into four subsections they are:

1. Sample selection and size;

2. Sampling procedure;

3. Data collection; and

4. Analytical tools

Sample Selection and size

The first step of research is sample selection, for which the respondents were consumers

in Ghazipur city. The total consumers covered were 120. The same questionnaires were

distributed, but only 100 fully-completed questionnaires were received. Results are based

on the response of these 100 respondents.

Sampling Procedure

There are basically two methods of sampling:-

Probability sampling

It is also known as random sampling. Under this sampling design every item of the

universe has an equal chance of inclusion in the sample. It is, so to say, a lottery method

in which individual units are picked from the whole group not deliberately but by some

mechanical process. Here it blind chance alone that determines whether one item or the

other is selected. The results obtained from probability sampling can be assured in terms

of probability.

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Non Probability sampling

Non Probability sampling is that sampling procedure which does not afford any basis for

estimating the probability that each item in the population has been included in the

sample. In this type of sampling, items for the sample selected deliberately by the

researcher; his choice concerning the items remains supreme.

For the study the consumers are selected by the convenience sampling

method. The selection of units from the population based on their easy availability and

accessibility to the researcher is known as convenience sampling

Data Collection method

Data Collection Method

Primary Secondary

Direct personal Interview

Indirect personal Interview Govt. publication

Information from correspondents Report Committees

Mailed questionnaire & Commissions Private Publication

Question filled by enumerators Research Institute

The task data collection begins after research problem has been defined. There are two

methods for data collection.

66

Published Sources Unpublished Sources

Primary data

Primary data may be described as those data that have been observed and recorded by the

researcher for the first time to their knowledge. I meet only investors of Reliance

Money

Secondary data

Secondary data are those data which have been already collected and analyzed by some

earlier agency for its own use; and later the same data are used by a different agency.

For the present study, the survey method was used for collecting primary data. A

structured questionnaire was used for the purpose. The questionnaire included multiple

choice questions. The main source of secondary data has been Insurance Chronicle,

ICFAI journal of Services Marketing, the leafy journal of Consumer Behavior, Indian

journal of Marketing, and Behavioral Finance. The study employs primary data collected

by communicating with the respondents with the help of structured questionnaire. The

study mainly deals with the financial behavior of individual investors towards Service

Proliferation of Reliance Money in Ghazipur.

Analytical Data

The data thus collected, was tabulated, interpreted and analyzed with a view to make the

study meaningful. In the present study, hypothesis testing, percentage, frequency and

cross tabulation methods have been used for analysis.

67

CHAPTER – 4

Data analysis & Interpretation

68

Table:1 Do you have any investment with Reliance Money?

Sr.No No. Of investors Percentage Yes 100 100%No 0 0%

Chart- 1

Analysis-It is found that 100% investors are interested to invest their money in

Reliance money.

Interpretation- From the above analysis the researcher came to know that most of

the investors are interested to invest their money in Reliance money.

69

Table- 2

RELIANCE INVESTMENT PRODUCTS (FUND STRUCTURE)

Structure of the funds No. of investors preferred Percentage

Open-ended funds 64 64%

Close-ended funds 24 24%

Interval funds 12 12%

Total 100 100%

Chart- 2

Analysis-It is found that 64% investors are interested to invest their money in open

ended funds, 24% investors are interested to invest their money in close ended funds and

the remaining 12% investors are interested to invest their money in interval funds.


the 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.

70

Table- 3INVESTORS SCHEME PREFERENCE

Preferred fund scheme No. of investors preferred Percentage

Growth scheme 52 52%

Income scheme 16 16%

Balanced scheme 32 32%

Total 100 100%

Chart-3

Analysis- In the above graph it is showed 52% of customers are interested to invest in

growth schemes, 32% of customers are interested to invest in balanced schemes and the

remaining and 16% customers are preferred to invest in Income schemes.


the investors are interested to invest their money in growth schemes.

71

Table- 4

TABLE SHOWING REPETITION OF INVESTMENTS MADE BY THE RESPONDENTS

Response No. of Respondents Percentage

Yes 64 64%

No 36 36%

Total 100 100%

Chart- 4

Analysis- Out of 100 respondents 64% investors have already reinvested in the

company, while the rest 36% have not reinvested in the company.

Interpretation- From the above analysis the researcher came to know that

maximum investors have already reinvested in the company, while the rest are waiting for

a correct time in the market for the second time.

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Table- 5SATISFACTION ABOUT MONTHLY / QUARTERLY STATEMENTS

Satisfaction about Monthly / Quarterly statements

No. of Respondents Percentage

Strongly Satisfied 45 45%

Satisfied 25 25%

Indifferent 15 15%

Dissatisfied 10 10%

Strongly Dissatisfied 5 5%

Total 100 100%

Chart- 5

Analysis- In the above graph it is showed that 45% respondents said that they are

strongly satisfied, 25% respondents said that they are satisfied, 15% respondents said that

they are indifferent, 10% respondents said that they are dissatisfied and 5% respondents

said that they are strongly dissatisfied with Monthly / Quarterly statements.

73


maximum investors are strongly satisfied with Monthly / Quarterly statements provided

by Reliance Money.

74

Table- 6SATISFACTION ABOUT REDEMPTION FACILITIES

Satisfaction about Redemption facilities



Satisfied 18 18%

Indifferent 20 20%

Dissatisfied 6 6%


Total 100 100%

Chart- 6




said that they are strongly dissatisfied with redemption facilities provided by Reliance

Money.

75


maximum investors are strongly satisfied with redemption facilities provided by Reliance

Money.

.

76

Table- 7SATISFACTION ABOUT VALUE ADDED SERVICES

Satisfaction about Value Added Services



Satisfied 18 18%

Indifferent 12 12%

Dissatisfied 12 12%


Total 100 100%

Chart- 7




said that they are strongly dissatisfied with value added services provided by Reliance

Money.

77


maximum investors are strongly satisfied with value added services provided by Reliance

Money.

78

Table- 8SATISFACTION ABOUT RATE OF RETURN

Satisfaction about Rate of return



Satisfied 20 20%

Indifferent 18 18%

Dissatisfied 10 10%


Total 100 100%

Chart-8




said that they are strongly dissatisfied with rate of return provided by Reliance Money.

79


maximum investors are strongly satisfied with rate of return provided by Reliance

Money.

80

Table- 9SATISFACTION ABOUT TIME-PERIOD OF RETURN

Satisfaction about Time-Period of return



Satisfied 15 15%

Indifferent 25 25%

Dissatisfied 20 20%


Total 100 100%

Chart- 9




out of 100 said that they are strongly dissatisfied with time-period of return provided by

Reliance Money.

81


maximum investors are strongly satisfied with time-period of return provided by Reliance

Money.

82

Table- 10SATISFACTION WITH AGENT’S SERVICES

Satisfaction with Agent’s Services



Satisfied 20 20%

Indifferent 20 20%

Dissatisfied 15 15%


Total 100 100%

Chart-10




said that they are strongly dissatisfied with agent’s services provided by Reliance Money.

83


maximum investors are strongly satisfied with agent’s services provided by Reliance

Money.

84

Table- 11SATISFACTION ABOUT CUSTOMER CARE SERVICES

Satisfaction about Customer Care Services



Satisfied 22 22%

Indifferent 15 15%

Dissatisfied 20 20%


Total 100 100%

Chart- 11




said that they are strongly dissatisfied with customer care services provided by Reliance

Money.

85


maximum investors are strongly satisfied with customer care services provided by

Reliance Money.

Table- 1286

SATISFACTION ABOUT EMPLOYEE’S COOPERATION

Satisfaction about after sales Services



Satisfied 25 25%

Indifferent 23 23%

Dissatisfied 22 22%


Total 100 100%

Chart- 12




said that they are strongly dissatisfied with employee’s cooperation of Reliance Money.

87


maximum investors are satisfied with employee’s cooperation of Reliance Money.

88

Table- 13SATISFACTION WITH SCHEMES

Satisfaction with the Schemes of Reliance Money



Satisfied 27 27%

Indifferent 23 23%

Dissatisfied 20 20%


Total 100 100%

Chart- 13




said that they are strongly dissatisfied with the schemes of Reliance Money.

89


maximum investors are satisfied with the schemes of Reliance Money.

90

Table- 14SATISFACTION ABOUT SERVICE CHARGES

Satisfaction about the Service Charges



Satisfied 25 25%

Indifferent 20 20%

Dissatisfied 22 22%


Total 100 100%

Chart- 14




said that they are strongly dissatisfied with the service charges of Reliance Money.

91


maximum investors are satisfied with the service charges of Reliance Money.

92

Table- 15

SATISFACTION ABOUT PROMOTIONAL ACTIVITIES

Satisfaction about the

Promotional Activities



Satisfied 20 20%

Indifferent 28 28%

Dissatisfied 22 22%


Total 100 100%

Chart- 15




said that they are strongly dissatisfied with the promotional activities of Reliance Money.

93


maximum investors are indifferent with the promotional activities of Reliance Money.

94

Table- 16SATISFACTION ABOUT RELIANCE LIFE INSURANCE ULIP

Satisfaction about Reliance Life Insurance ULIP



Satisfied 20 20%

Indifferent 30 30%

Dissatisfied 16 16%


Total 100 100%

Chart- 16




said that they are strongly dissatisfied with reliance life insurance ULIP.


maximum investors are indifferent with reliance life insurance ULIP.

95

Table- 17RESPONSE REGARDING AREAS FOR IMPROVEMENT

Areas to Improve No. of Respondents Percentage

Customer Service 35 35%

Monitoring of fund 38 38%

Agent’s Training 22 22%

Others 5 5%

Total 100 100%

Chart- 17

Analysis- In the above graph it is showed that 35% respondents said that Reliance

Money should improve in customer service area, 38% respondents said that Reliance

Money should improve in monitoring of fund area, 22% respondents said that Reliance

Money should improve in agent’s training area and 5% respondents said that Reliance

Money should improve in others area.

Interpretation- From the above analysis the researcher came to know that Reliance

Money should improve in monitoring of fund area.

96

97

CHAPTER – 6

Findings & Recommendations

Findings

98

The researcher went to 100 customers of Reliance Money to know their opinion about the

financial products of the company. He gets following result-

1-

64% respondents choose reliance investment products due to Open-ended funds.

24% respondents choose reliance investment products due to Close-ended funds.

12% respondents choose reliance investment products due to Interval funds.

2-

52% respondents said that they like Growth scheme.

16% respondents said that they like Income scheme.

32% respondents said that they like balanced scheme.

3-

64% Investor say yes that they had repeated the investment in reliance-money

products.

36% Investor say no that they did not repeat the investment in reliance-money

products.

4-

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45% respondents said that they are strongly satisfied with Monthly / Quarterly

statements provided by Reliance Money.

25% respondents said that they are satisfied with Monthly / Quarterly statements

provided by Reliance Money.

15% respondents said that they are indifferent with Monthly / Quarterly


10% respondents said that they are dissatisfied with Monthly / Quarterly


5% respondents said that they are strongly dissatisfied with Monthly / Quarterly


5-

52% respondents said that they are strongly satisfied with redemption facilities


18% respondents said that they are satisfied with redemption facilities provided by

Reliance Money.

20% respondents said that they are indifferent with redemption facilities provided

by Reliance Money.

6% respondents said that they are dissatisfied with redemption facilities provided

by Reliance Money.

4% respondents said that they are strongly dissatisfied with redemption facilities


6-

100

48% respondents said that they are strongly satisfied with value added services


18% respondents said that they are satisfied with value added services provided by

Reliance Money.

12% respondents said that they are indifferent with value added services provided

by Reliance Money.

12% respondents said that they are dissatisfied with value added services provided

by Reliance Money.

10% respondents said that they are strongly dissatisfied with value added services


7-

42% respondents said that they are strongly satisfied with rate of return provided

by Reliance Money.

20% respondents said that they are satisfied with rate of return provided by

Reliance Money.

18% respondents said that they are indifferent with rate of return provided by

Reliance Money.

10% respondents said that they are dissatisfied with rate of return provided by

Reliance Money.

10% respondents said that they are strongly dissatisfied with rate of return


8-

101

30% respondents said that they are strongly satisfied with time-period of return


15% respondents said that they are satisfied with time-period of return provided

by Reliance Money.

25% respondents said that they are indifferent with time-period of return provided

by Reliance Money.

20% respondents said that they are dissatisfied with time-period of return


10% respondents said that they are strongly dissatisfied with time-period of return


9-

35% respondents said that they are strongly satisfied with agent’s services


20% respondents said that they are satisfied with agent’s services provided by

Reliance Money.

20% respondents said that they are indifferent with agent’s services provided by

Reliance Money.

15% respondents said that they are dissatisfied with agent’s services provided by

Reliance Money.

10% respondents said that they are strongly dissatisfied with agent’s services


10-

102

38% respondents said that they are strongly satisfied with customer care services


22% respondents said that they are satisfied with customer care services provided

by Reliance Money.

15% respondents said that they are indifferent with customer care services


20% respondents said that they are dissatisfied with customer care services


5% respondents said that they are strongly dissatisfied with customer care services


11-

20% respondents said that they are strongly satisfied with employee’s cooperation

of Reliance Money.

25% respondents said that they are satisfied with employee’s cooperation of

Reliance Money.

23% respondents said that they are indifferent with employee’s cooperation of

Reliance Money.

22% respondents said that they are dissatisfied with employee’s cooperation of

Reliance Money.

10% respondents said that they are strongly dissatisfied with employee’s

cooperation of Reliance Money.

12-

103

20% respondents said that they are strongly satisfied with the schemes of Reliance

Money.

27% respondents said that they are satisfied with the schemes of Reliance Money.

23% respondents said that they are indifferent with the schemes of Reliance

Money.

20% respondents said that they are dissatisfied with the schemes of Reliance

Money.

10% respondents said that they are strongly dissatisfied with the schemes of

Reliance Money.

13-

15% respondents said that they are strongly satisfied with the service charges of

Reliance Money.

25% respondents said that they are satisfied with the service charges of Reliance

Money.

20% respondents said that they are indifferent with the service charges of Reliance

Money.

22% respondents said that they are dissatisfied with the service charges of

Reliance Money.

18% respondents said that they are strongly dissatisfied with the service charges

of Reliance Money.

14-

104

18% respondents said that they are strongly satisfied with the promotional

activities of Reliance Money.

20% respondents said that they are satisfied with the promotional activities of

Reliance Money.

28% respondents said that they are indifferent with the promotional activities of

Reliance Money.

22% respondents said that they are dissatisfied with the promotional activities of

Reliance Money.

12% respondents said that they are strongly dissatisfied with promotional

activities of Reliance Money.

15-

25% respondents said that they are strongly satisfied with reliance life insurance

ULIP.

20% respondents said that they are satisfied with reliance life insurance ULIP.

30% respondents said that they are indifferent with reliance life insurance ULIP.

16% respondents said that they are dissatisfied with reliance life insurance ULIP.

9% respondents said that they are strongly dissatisfied with reliance life insurance

ULIP.

16-

105

35% respondents said that Reliance Money should improve in customer service

area.

38% respondents said that Reliance Money should improve in monitoring of fund

area.

22% respondents said that Reliance Money should improve in agent’s training

area.

5% respondents said that Reliance Money should improve in others area.

106

Recommendations

After completion of the research work the researcher came to some conclusions which

could help the company in development & improvement of service process. This is

helpful in future development of the company. The following points come in the

suggestion parts which came after the analysis and conclusion of the research:-

The company should improve the quality of the financial product.

The company should increase the frequency of free service camps for giving

knowledge about financial product of Reliance Money. For quick response on the

complaints there must be a group of financial adviser at the offices who will

provide prompt service at the time without any delay.

The company should improve its promotional activities through advertisement,

lucky draws, free gifts coupons etc. Since the price of the financial product is also

an important factor which influence the investment decision so the company

should design the financial products price according to the customer affordance

level.

Company should instruct the sales representatives not to make extra ordinary

commitments on behalf of the company for sale.

107

CHAPTER – 7

Conclusion & Limitations

108

Conclusions

From the above study it can be concluded that Reliance Money is performing well

in the existing market condition in the area of Ghazipur, but the market of Ghazipur is

highly competitive and there is a scope of huge improvement with the changing scenario

an marketing condition of less developed area of Ghazipur, so there is an extensive need

of improving company image and better utilization of resources to utilize the market

potential.

The results of current time are satisfactory but the company should try to attract

more customers towards the company.

From above analysis and survey we can conclude as follows

The researcher found that the market position of Reliance Money is good.

The customers are satisfied with the promotional activities of Reliance Money.

The result shows that the companies which are providing more facilities are

leading in the market.

109

The researcher found that the companies, who are spending more money on their

promotional activity & market attractive schemes with low price, are successful in

the market.

The researcher found that the customers of Reliance Money are satisfied with the

customer services provided by Reliance Money.

The researcher found that most of the investors are interested to invest their

money in open ended funds the reason is that its convenience to enter and exit at

any time.

The researcher found that most of the investors are satisfied with the schemes of

Reliance Money.

The result shows that the companies which employee’s cooperation is good are

leading in the market.

110

Limitations of the Research

The research is confined to a certain parts of Ghazipur and does not necessarily shows a

pattern applicable to all of Country.

1. Some respondents were reluctant to divulge personal information which can affect

the validity of all responses.

2. In a rapidly changing industry, analysis on one day or in one segment can change

very quickly. The environmental changes are vital to be considered in order to

assimilate the findings.

3. Sometime the customer did not give right information about himself.

4. Sometime the gap of communication was come in between the interaction.

5. The study is confined to the existing customers of Reliance Money only.

111

Annexure

112

Questionnaire

Name…………………………….

Age……………………………….

Occupation……………………..

Address………………………….

Phone number………………….

1.1. Do you have any investment with Reliance Money?

i. Yes [ ]

ii. No [ ]

2. By structure in which type of schemes did you invested?

i. Open- Ended Schemes [ ]

ii. Close- Ended Schemes [ ]

iii. Interval Schemes [ ]

3. By investment objective in which type of schemes had you invested?

i. Growth Schemes [ ]

ii. Income Schemes [ ]

113

iii. Balanced Schemes [ ]

4. Did you repeat your investment after your initial investments?

i. Yes [ ]

ii. No [ ]

5. Are you satisfied with the Monthly / Quarterly statements provided by Reliance

Money?

i. Strongly Satisfied [ ]

ii. Satisfied [ ]

iii. Indifferent [ ]

iv. Dissatisfied [ ]

v. Strongly Dissatisfied [ ]

6. Are you satisfied with the redemption facilities provided by Reliance

Money?


ii. Satisfied [ ]




7. Are you satisfied with the value added services provided by Reliance

Money?


ii. Satisfied [ ]



114


8. Are you satisfied with the rate of return provided by Reliance Money?


ii. Satisfied [ ]




9. Are you satisfied with the time-period of return provided by Reliance

Money?


ii. Satisfied [ ]




10. Are you satisfied with the agent’s services?


ii. Satisfied [ ]




11. Are you satisfied with the customer care services provided by Reliance Money?


ii. Satisfied [ ]

115




12. Are you satisfied with employee’s cooperation of Reliance Money?


ii. Satisfied [ ]




13. Are you satisfied with the schemes provided by Reliance Money?


ii. Satisfied [ ]




14. Are you satisfied with service charges of Reliance Money?


ii. Satisfied [ ]




15. Are you satisfied with the promotional activities of Reliance Money?


ii. Satisfied [ ]

116




16. Are you satisfied with Reliance Life Insurance ULIP?


ii. Satisfied [ ]




17. In which areas do you want Reliance Money to improve?

i. Customer service [ ]

ii. Monitoring of fund [ ]

iii. Agent’s training [ ]

iv. Others [ ]

18. Do you want to give any suggestions?

…………………………………………………………………………………………

…………………………………………………………………………………………

………………………………………………………………………………..

THANK YOU

117

Bibliography & References

118

Bibliography

Books/Magazines Referred:-

Kothari C.R. – Research Methodology.

Study Guide - Principles & Practices of Life/General Insurance, by AIMA.

Books Published by Insurance Institute of India.

Life- Insurance, by Mc GILL

Insurance watch.

119

Money outlook.

WEBSITES:

www.reliancemoney.com

www.reliancemutuawlfunds.com

www.amfiindia.com

www.mutualfundsindia.com

www.ask.com

www.faq.com

www.bseindia.com

www.amfiinia.com/mutual funds/nav/about funds/open ended schemes.com

www.investopedia/aboutus/html

REFERENCES

FEFSI statistics (FeYdeYration EuropeYenes des Fonds et SocieYteYs

D’Investissement, the European umbrella organization of the investment fund

industry), available at http://www.fefsi.org.

Wilcox, R. (2001) ‘Advertising mutual fund returns’.

Journal of Public Policy and marketing, Vol. 20, pp. 133-137.

120

http://www.fefsi.org/

http://www.investopedia/aboutus/html

http://www.amfiinia.com/mutual%20funds/nav/about%20funds/open%20ended%20schemes.com

http://www.bseindia.com/

http://www.faq.com/

http://www.ask.com/

http://www.mutualfundsindia.com/

http://www.amfiindia.com/

http://www.reliancemutuawlfunds.com/

http://www.reliancemoney.com/

Jain, P. and Wu, J.S. (2000) ‘Truth in mutual fund advertising: Evidence on future

performance and fund flows’, Journal of Finance, Vol. 55, pp. 937-958.

Sirri, E. and Tufano, P. (1998) ‘Costly search and mutual fund flows’, Journal of

Finance, Vol. 53, pp. 1589-1622.

1. Advertising in the mutual fund business: The role of Judgment heuristic in private

investors’ evaluation of risk and return 8th August, 2002 Jenny Jorden Klaus P.

Kaas.

2. Mutual Funds in India – Perspectives and Strategies

Edition 2007 Published by ICFAI BUSINESS SCHOOL

- Arindam Banerjee

121

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