A

PROJECT REPORT
ON
“CONSUMER BUYING BEHAVIOUR
OF
RELIANCE SECURITIES ’’
UNDER THE GUIDANCE
Prof. Arun Kumar Mishra
MENTOR

SUBMITTED BY
MONALI RATHORE
ROLL NO - 192580043
BRANCH - HR & MARKETING
MBA F.T Course - Semester IV

ORIENTAL COLLEGE OF MANAGEMEENT

BARKATULLAH UNIVERSITY
YEAR - 2020

1
 ORIENTAL COLLEGE OF MANAGEMEENT

BARKATULLAH UNIVERSITY
YEAR - 2020

CERTIFICATE

This is to certify that MONALI RATHORE student of MBA FOURTH

SEMESTER has undertakenn a project on “CONSUMER BUYING BEHAVIOR”
OF RELIANCE SECURRITIES submitted in the partial fulfillment for the
requirement of Master of Business Administration”

2
 DECLARATION

MONALI RATHORE student of MBA FOURTH SEMESTER HR-MARKETING,

ORIENTAL COLLEGE OF MANAGEMENT BHOPAL hereby declare that the project
report entitled “CONSUMER BUYING BEHAVIOR” OF RELIANCE
SECURITIES Has been carried out submitted in partial fulfillment for the Master of
Business Administration” is the result of my own work and is original. I have not submitted this
project to any other university or college for the award of any other degree or Diploma.

Place: BHOPAL MONALI RATHORE

Date ………28/09/2020……………… MBA VI Sem

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 ACKNOWLEDGEMENT

I would like to express my deep sense of gratitude to the respectable guide distinguished

personalities for their precious suggestion and encouragement during the training

The experience which is gained by me during this training is essential for me at this turning point

of my career.

I am also thankful to my guide Prof. Arun Kumar Mishra (MENTOR) for providing

the guidance and suggestions. Last but not the least I would like to thank company officials, My

friends & family members for their constant support.

MONALI RATHORE
MBA IV Sem

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 CONTENTS
SR.NO TITLE PAGE NO.

1 INTRODUCTION 6-36

A. INTRODUCTION TO TOPIC-

B. OBJECTIVES

C. RESEARCH METHODOLOGY

D. LIMITATIONS

E. SCOPE

2. ORGANISATIONAL /COMPANY PROFILE 37-50

3. DATA ANALYSIS AND INTERPRETATION 51-60

4. OBSERVATION AND FINDINGS 61

5. CONCLUSIONS 62-63

6. RECOMMENDATIONS 64-65

BIBLIOGRAPHY 66-67

7. ANNEXUTRE 68-71

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 1. INTRODUCTION

A. INTRODUCTION TO TOPIC-

B. OBJECTIVES

C. RESEARCH METHODOLOGY

D. LIMITATIONS

E. SCOPE

6
 1. INTRODUCTION

Consumer behavior

Consumer behavior is a rapidly growing discipline of study. It means more than just how a
person buys products. It is a complex and multi dimensional process and reflects the totality of
consumers decisions with respect to acquisition, consumption and disposal activities. We as a
consumer exhibit very significant differences in our buying behaviour and play an important role
in local, national or international economic conditions. One of the very few aspects common to
all of us is that we are all consumers and the reason for a business firm to come into being is the
presence of consumers who have unfulfilled, or partially fulfilled needs and wants. No matter
who we are –urban or rural, male or female, young or old, rich or poor, educated or uneducated,
believer or non believer, or whatever –we are all consumers.

Consumer behaviour is the study of when, why, how, and where people do or do not buy a
product. It blends elements from psychology, sociology, social anthropology and economics. It
attempts to understand the buyer decision making process, both individually and in groups. It
studies characteristics of individual consumers such as demographics and behavioural variables
in an attempt to understand people's wants. It also tries to assess influences on the consumer
from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for
customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of
marketing through the re-affirmation of the importance of the customer or buyer. A greater
importance is also placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social functions can be categorized
into social choice and welfare functions.

Each method for vote counting is assumed as social function but if Arrow’s possibility theorem
is used for a social function, social welfare function is achieved. Some specifications of the
social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity

7
and weak and strong Pareto optimality. No social choice function meets these requirements in an
ordinal scale simultaneously. The most important characteristic of a social function is
identification of the interactive effect of alternatives and creating a logical relation with the
ranks. Marketing provides services in order to satisfy customers. With that in mind, the
productive system is considered from its beginning at the production level, to the end of the
cycle, the consumer (Kioumarsi et al., 2009).

Organisations realize that their marketing effectiveness in satisfying consumer needs and wants
at a profit depends on a deeper understanding of consumer behaviour. Our consumption related
behaviour influences the development of technology and introduction of new and improved
products and services.

MUTUAL FUND

Mutual fund is a trust that pools the savings of a number of investors who share a common
financial goal. This pool of money is invested in accordance with a stated objective. The joint
ownership of the fund is thus “Mutual”, i.e. the fund belongs to all investors. 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 appreciations realized
are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual
Fund is the most suitable investment for the common man as it offers an opportunity to invest in
a diversified, professionally managed basket of securities at a relatively low cost. A Mutual Fund
is an investment tool that allows small investors access to a well-diversified portfolio of equities,
bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are
issued and can be redeemed as needed. The fund’s Net Asset value (NAV) is determined each
day.

Investments in securities are spread across a wide cross-section of industries and sectors
and thus the risk is reduced. Diversification reduces the risk because all stocks 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 unit holders.

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When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets
of the fund in the same proportion as his contribution amount put up with the Corpus (the total
amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit
holder.
Any change in the value of the investments made into capital market instruments (such as shares,
debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the
market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is
calculated by dividing the market value of scheme's assets by the total number of units issued to
the investors.

NAV (For a particular day)

= Market Value of the scheme / Number of unit-holders

Where,

9
Numerator= Market value of investment+receivables+other Accrued Income +Other
Assets-Accrued Expenses-Other Payables-Other Liabilities.

SETUP OF MUTUAL FUNDS:

A mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management
Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor
who is like promoter of a company. The trustees of the mutual fund hold its property for the
benefit of the unit holders.

Asset management company (AMC) approved by SEBI managers the fund by making
investments in various schemes of the in its custody. The trustees are vested with the general
power of superintendence and direction over AMC. They monitor the performance and
compliance of SEBI regulations by the mutual fund.

SEBI regulations require that at least two thirds of the directors of trustee company or board of
trustees must be independent i.e., they should not be associated with the sponsors. Also, 50% of
the directors of AMC must be independent. All mutual funds are required to be registered with
SEBI before they launch any scheme. The performance of a particular scheme of a mutual fund
is denoted by net value (NAV).

ADVANTAGES OF MUTUAL FUND

a) Portfolio Diversification
b) Professional management
c) Reduction / Diversification of Risk
d) Liquidity
e) Flexibility & Convenience
f) Reduction in Transaction cost

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 g) Safety of regulated environment
h) Choice of schemes
i) Transparency

DISADVANTAGE OF MUTUAL FUND

a) No control over Cost in the Hands of an Investor

b) No tailor-made Portfolios
c) Managing a Portfolio Funds
d) Difficulty in selecting a Suitable Fund Scheme

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 A. INTRODUCTION TO TOPIC

MUTUAL FUND INDUSTRY

HISTORY

In the beginning:

Historians are uncertain of the origins of investment funds; some cite the closed-end investment
companies launched in the Netherlands in 1822 by King William I as the first mutual funds, while others
point to a Dutch merchant named Adrian van Ketwich whose investment trust created in 1774 may
have given the king the idea. Van Ketwich probably theorized that diversification would increase the
appeal of investments to smaller investors with minimal capital. The name of van Ketwich's fund,

Eendragt Maakt Magt, translates to "unity creates strength". The next wave of near-mutual funds included
an investment trust launched in Switzerland in 1849, followed by similar vehicles which is followed by many
kind of companies created in Scotland in the 1880s.

The idea of pooling resources and spreading risk using closed-end investments soon took root in Great
Britain and France, making its way to the United States in the 1890s. The Boston Personal Property

Trust, formed in 1893, was the first closed-end fund in the U.S. The creation of the Alexander Fund in
Philadelphia, Pennsylvania, in 1907 was an important step in the evolution toward what we know as the
modern mutual fund. The Alexander Fund featured semi-annual issues and allowed investors to make
withdrawals on demand.

The Arrival of the Modern Fund:

The creation of the Massachusetts Investors' Trust in Boston, Massachusetts, heralded the arrival of
the modern mutual fund in 1924. The fund went public in 1928, eventually spawning the mutual fund firm
known today as MFS Investment Management. State Street Investors' Trust was the custodian of the
Massachusetts Investors' Trust. Later, State Street Investors started its own fund in 1924 with Richard

12
Paine, Richard Saltonstall and Paul Cabot at the helm. Saltonstall was also affiliated with Scudder,
Stevens and Clark, an outfit that would launch the first no-load fund in 1928. A momentous year in the
history of the mutual fund, 1928 also saw the launch of the Wellington Fund, which was the first mutual
fund to include stocks and bonds, as opposed to direct merchant bank style of investments in business
and trade.

Regulation and Expansion:

By 1929, there were 19 open-end mutual funds competing with nearly 700 closed-end funds. With the
stock market crash of 1929, the dynamic began to change as highly-leveraged closed-end funds were
wiped out and small open-end funds managed to survive.

Government regulators also began to take notice of the fledgling mutual fund industry. The creation of the
Securities and Exchange Commission (SEC), the passage of the Securities Act of 1933 and the
enactment of the Securities Exchange Act of 1934 put in place safeguards to protect investors: mutual
funds were required to register with the SEC and to provide disclosure in the form of a prospectus. The
Investment Company Act of 1940 put in place additional regulations that required more disclosures and
sought to minimize grievance of investor of different categories conflicts of interest.

The mutual fund industry continued to expand. At the beginning of the 1950s, the number of open-end
funds topped 100. In 1954, the financial markets overcame their 1929 peak, and the mutual fund industry
began to grow in earnest, adding some 50 new funds over the course of the decade. The 1960s saw the
rise of aggressive growth funds, with more than 100 new funds established and billions of dollars in new
asset inflows.

Hundreds of new funds were launched throughout the 1960s until the bear market of 1969 cooled the
public appetite for mutual funds. Money flowed out of mutual funds as quickly as investors could redeem
their shares, but the industry's growth later resumed.

Massachusetts Investors Trust (now MFS Investment Management) was founded on March 21, 1924,
and, after one year, had 200 shareholders and $392,000 in assets. The entire industry, which included a
few closed-end funds, represented less than $10 million in 1924.
The stock market crash of 1929 slowed the growth of mutual funds. In response to the stock market
crash, Congress passed the Security Act of 1933 and the Securities Exchange Act of 1934. These laws
require that a fund be registered with the SEC.

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INDIAN MUTUAL FUND INDUSTRY

HISTORY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank of India. Though the
growth was slow, but it accelerated from the year 1987 when Non-UTI players entered
into the Industry.

In the past decade, Indian mutual fund industry had seen a dramatic improvement, both
qualities wise as well as quantity wise. In March 1987, the Asset Under Management
(AUM) was Rs.4564 crores. The private sector entry to the fund family raised the AUM to
Rs. 47000 crores in March 1993 and till April 30, 2010; it has reached the height of Rs. 7,
19,133 crores.

Asset Under Management (In Rs. Crores)

800000
719133
700000
600000
505152
417300
500000
400000
326388
300000
200000 79464
100000 47000
25 4564
0
1965 Phase I 1987 Phase 1993 Phase 2003 Phase 2007 2008 2009 30-Apr
II III IV

Asset Under Management (In Rs. Crores)

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The Mutual Fund Industry is obviously growing at a tremendous space with 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.

Phase I. Establishment and Growth of Unit Trust of India - 1964-87

Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an
act of Parliament. UTI was set up by the Reserve Bank of India and it continued to operate under
the regulatory control of the RBI until the two were de-linked in 1978 and the entire control was
transferred in the hands of Industrial Development Bank of India (IDBI). UTI launched its first
scheme in 1964, named as Unit Scheme 1964 (US-64), which attracted the largest number of
investors in any single investment scheme over the years. UTI launched more innovative
schemes in 1970s and 80s to suit the needs of different investors. It launched ULIP in 1971, six
more schemes between 1981 and 1984, Children's Gift Growth Fund and India Fund (India's first
offshore fund) in 1986, Master share (India’s first equity diversified scheme) in 1987 and
Monthly Income Schemes (offering assured returns) during 1990s. By the end of 1987, UTI's
assets under management grew ten times to Rs. 6700 crores.

Phase II. Entry of Public Sector Funds - 1987-1993

The Indian mutual fund industry witnessed a number of public sector players entering the market
in the year 1987. In November 1987, SBI Mutual Fund from the State Bank of India became the
first non-UTI mutual fund in India. SBI Mutual Fund was later followed by Canbank Mutual
Fund, LIC Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund, GIC Mutual
Fund and PNB Mutual Fund. By 1993, the assets under management of the industry increased
seven times to Rs. 47,004 crores. However, UTI remained to be the leader with about 80%
market share.

15
 Mobilization as %
Amount Mobilized Assets Under Management
1992-93 of Gross Domestic
(In Rs. crores) (In Rs. crores)
Savings

UTI 11,057 38,247 5.2%

Public Sector 1,964 8,757 0.9%

Total 13,021 47,004 6.1%

Phase III. Emergence of Private Sector Funds - 1993-96

The permission given to private sector funds including foreign fund management companies
(most of them entering through joint ventures with Indian promoters) to enter the mutual fund
industry in 1993, provided a wide range of choice to investors and more competition in the
industry. Private funds introduced innovative products, investment techniques and investor-
servicing technology. By 1994-95, about 11 private sector funds had launched their schemes.

Phase IV. Growth and SEBI Regulation - 1996-2004

The mutual fund industry witnessed robust growth and stricter regulation from the SEBI after the
year 1996. The mobilization of funds and the number of players operating in the industry reached
new heights as investors started showing more interest in mutual funds. Investors' interests were
safeguarded by SEBI and the Government offered tax benefits to the investors in order to
encourage them. SEBI (Mutual Funds) Regulations, 1996 was introduced by SEBI that set
uniform standards for all mutual funds in India. The Union Budget in 1999 exempted all
dividend incomes in the hands of investors from income tax. Various Investor Awareness
Programs were launched during this phase, both by SEBI and AMFI, with an objective to
educate investors and make them informed about the mutual fund industry. In February 2003,
16
the UTI Act was repealed and UTI was stripped of its Special legal status as a trust formed by an
Act of Parliament. The primary objective behind this was to bring all mutual fund players on the
same level.

UTI was re-organized into two parts:

1. The Specified Undertaking
2. The UTI Mutual Fund
Presently Unit Trust of India operates under the name of UTI Mutual Fund and its past schemes
(like US-64, Assured Return Schemes) are being gradually wound up.
However, UTI Mutual Fund is still the largest player in the industry. In 1999, there was a
significant growth in mobilizations of funds from investors and assets under management which
is supported by the following data:

ASSETS UNDER MANAGEMENT (RS. CRORES)

PUBLIC PRIVATE
AS ON UTI TOTAL
SECTOR SECTOR

31-March-99 53,320 8,292 6,860 68,472

Phase V. Growth and Consolidation - 2004 Onwards

The industry has also witnessed several mergers and acquisitions recently, examples of which are
acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund and
PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more international mutual fund
players have entered India like Fidelity, Franklin Templeton Mutual Fund etc. There were 38
funds as at the end of April 2010. This is a continuing phase of growth of the industry through
consolidation and entry of new international and private sector players.

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MUTUAL FUND STRUCTURE

In India, the following are involvved in mutual fund operations: the sponsor, the mutual fund, the
trustees, the asset management coompany, the custodian, and the registrars and traansfer agents.

Fund Sponsor:
The sponsor of a mutual fundd is like the promoter of a company. The sponsoor may be a
bank, a financial institution, or a financial service company. It may be Indian or foreign. The

18
sponsor is responsible for setting up and establishing the mutual fund. The sponsor is the
settler of the mutual fund trust. The sponsor delegates the trustee functions to the trustees.

Mutual fund :
The mutual funds constituted as a trust under the Indian trust act, 1881, and registered with
SEBI.

Trustees:
A trust is a notional entity that cannot contract in its own name. so, the trust enters into
contracts in the name of the trustees. Appointment by the sponsor, the trustees can be either
individuals or a corporate body. Typically it is the latter. The trustees appoint the asset
management company (AMC), secure necessary approval, periodically monitor how the
AMC functions, and hold the properties of the various schemes in trust for the benefits of
investors.

Asset Management Company:

It also referred to as the investment manager, is a separate company appointed by the trustees
to run the mutual fund. The AMC should have a certificate from SEBI to act as portfolio
manager under SEBI rules and regulations, 1993.

Custodian:
The custodian handles the investment back office operations of a mutual fund. It looks after
the receipt and delivery of securities, collection of income, distribution of dividends, and
segregation of assets between schemes. The sponsor of a mutual fund cannot act as its
custodian.

Registrars and Transfer Agents:

The registrars and transfer agents handle investor related services such as issuing units,
redeeming units, sending fact sheets and annual reports, and so on. Some funds handle such
functions in house, while others outsource it to be SEBI approved registrars and transfer

19
 agents like Karvy and CAMS. The legal structure and organization of mutual funds as laid
down by SEBI guidelines is as follows.

Indian Mutual Fund Industry

Thirteen out of 37 fund houses witnesses a growth in average AUM in January, 2010, with
Reliance Mutual Fund continuing the largest fund house by asset at Rs. 1.17 trillion. HDFC was
at the second spot at Rs. 948 billion, followed by ICICI Prudential Mutual Fund at Rs. 784
billion. UTI Mutual Fund and Birla Sun Life Mutual Fund followed with an average AUM of Rs.
745 billion and Rs. 626 billion, respectively. The share of top 5 MF’s in the industry’s asset was
at 56% while that of top 10 funds’ asset was close to 80% in January 2010.

As per AMFI data, UTI Mutual Fund had the highest number of investor folios at 10 million as
of December 2009. The total number of investor folios for the mutual fund industry stood at 48
million as of December 2009.

The average AUM data analyzed for equity oriented schemes showed that Reliance Growth Fund
held the highest corpus of around Rs. 70 billion, followed by HDFC top 200 fund, Reliance
diversified Power Sector fund, HDFC equity fund and SBI magnum Tax Gain Scheme1993 with
an average AUM Rs. 61billion, Rs.58 billion, Rs. 55 billion, Rs. 54 billion, respectively.

Some facts for the growth of mutual fund industry in India:

a) 100% growth in the last 6 years.
b) Numbers of foreign AMC’s are in the queue to enter the Indian markets like Fidelity
Investments, US based, with over US$1trillion assets under management worldwide.
c) Our saving rate is over 23%, highest in the world. Only channelizing these savings in
mutual funds sector is required.
d) We have approximately 37 mutual funds which are much less than US having more than
800. There is a big scope for expansion.
e) 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing cities.

20
 f) Mutual fund can penetrate rural like the Indian insurance industry with simple and
limited products.
g) SEBI allowing the MF's to launch commodity mutual funds.
h) Emphasis on better corporate governance.
i) Trying to curb the late trading practices.
j) Introduction of Financial Planners who can provide need based advice.

The Indian mutual funds business is expected to grow significantly in the coming years due to a
high degree of transparency and disclosure standards comparable to anywhere in the world,
though there are many challenges that need to be addressed to increase net mobilization of funds
in this sector, as said by Mr. A.P. Kurian, Chairman of the Association of Mutual Funds of India.

Indian Mutual fund industry exhibited 200% growth in the last 10 yrs from Rs.470 billion to
Rs1400 billion in terms of assets under management. The Mutual Funds industry is expected to
jump sharply from its present share of 6% of GDP to 40% in the next 10yrs provided the
country’s growth rate is consistently above 6%. The growing investor preference for mutual
funds has resulted in the assets under management of mutual funds growing 8-folds in last 5 yrs.
Number of foreign AMC's are in the queue to enter the Indian markets like US based Fidelity
Investments, with over US$1trillion assets under management worldwide. Our saving rate is over
23%, highest in the world. Only channeling these savings in mutual funds sector is required.
There is a big scope for expansion as we have 37 mutual funds which is much less than US
having more than 800.

ROLE OF MUTUAL FUND IN STOCK EXCHANGE:

Mutual funds are an ideal vehicle for investment by retail investors in the stock market for
several reasons.
a) It pools investments of small investors together increasingly thereby the participation in the
stock market.

21
b) Mutual funds being institutional investors, can invest in market analysis generally not
available or accessible to individual investors, providing therefore informed decisions to
small investors.
c) Mutual fund can diversify the portfolio in better way as compared with individual investors
due to the expertise and availability of funds.

Mutual funds in India, because of their small size and slower growth in the recent past, have
tended to play only a limited role in the stock market. share of mutual funds in total turnover of
the stock market (BSE+NSE), which was 4.9% in January 2000, declined to 3.6% by January
2003.

REGULATION OF MUTUAL FUND IN INDIA

ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI)

The mutual fund industry has a trade association called Association of Mutual Funds in India (AMFI) modeled
on the lines of a Self Regulating Organization (SRO) with a view to 'promoting and protecting the interest of
mutual funds and their unit-holders, increasing public awareness of mutual funds, and serving the investor’s
interest by defining and maintaining high ethical and professional standards in the mutual funds industry'.
AMFI plays an important role in disciplining members and assist the regulatory authority in protecting
investors' interest.

AMFI works through a number of committees, some of which are standing committees to
address areas where there is a need for constant vigil and improvements and other which are ad-
hoc committees constituted to address specific issues. These committees consist of industry
professionals from among the member mutual funds. AMFI has now decided to become a self-
regulatory organization since it has worked very effectively as an industry body.

The Association of Mutual Funds of India works with 30 registered AMCs of the country. It has
certain defined objectives which juxtaposes the guidelines of its Board of Directors. The
objectives are as follows:

 This mutual fund association of India maintains high professional and ethical standards in
all areas of operation of the industry.
22
  It also recommends and promotes the top class business practices and code of conduct
which is followed by members and related people engaged in the activities of mutual
fund and asset management. The agencies who are by any means connected or involved
in the field of capital markets and financial services also involved in this code of conduct
of the association.

 AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund
industry.

 Association of Mutual Fund of India does represent the Government of India, the Reserve
Bank of India and other related bodies on matters relating to the Mutual Fund Industry.

 It develops a team of well qualified and trained Agent distributors. It implements a

program of training and certification for all intermediaries and other engaged in the
mutual fund industry.

 AMFI undertakes all India awareness program for investors in order to promote proper
understanding of the concept and working of mutual funds.

At last but not the least association of mutual fund of India also disseminate information on
Mutual Fund Industry and undertakes studies and research either directly or in association
with other bodies.

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Securities and Exchange Board of India (SEBI)
As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual funds to
protect the interest of the investors. SEBI notified regulations for the mutual funds in 1993.
Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital
market. The regulations were fully revised in 1996 and have been amended thereafter from time
to time. SEBI has also issued guidelines to the mutual funds from time to time to protect the
interests of investors.

 Every mutual fund must be registered with SEBI and registration is granted only where SEBI is
satisfied with the background of the fund.
 SEBI (Mutual Funds) Regulations, 1996 lays down the provisions for the appointment of the
trustees and their obligations. The Regulations have also laid down the provisions for the
approval of the AMC and the custodian.
 Every new scheme launched by a mutual fund needs to be filed with SEBI and SEBI reviews the
document in regard to the disclosures contained in such documents.
 SEBI has also laid down advertisement code to be followed by a mutual fund in making any
publicity regarding a scheme and its performance.
 SEBI has the authority to inspect the books of accounts, records and documents of a mutual
fund, its trustees, AMC and custodian where it deems it necessary. SEBI also has the authority to
initiate penal actions against an erring MF.

Various investment options in Mutual Funds offer

To cater to different investment needs, Mutual Funds offer various investment options. Some
of the important investment options include:
1. Growth Option:
Dividend is not paid-out under a Growth Option and the investor realizes only the capital
appreciation on the investment (by an increase in NAV).

2. Dividend Payout Option:

Dividends are paid-out to investors under the Dividend Payout Option. However, the NAV of
the mutual fund scheme falls to the extent of the dividend payout.

24
3. Dividend Re-investment Option:
Here the dividend accrued on mutual funds is automatically re-invested in purchasing additional
units in open-ended funds. In most cases mutual funds offer the investor an option of collecting
dividends or re-investing the same.

4. Retirement Pension Option:

Some schemes are linked with retirement pension. Individuals participate in these options for
themselves, and corporate participate for their employees.

5. Insurance Option:
Certain Mutual Funds offer schemes that provide insurance cover to investors as an
added benefit.

INVESTMENT STRATEGIES

1. Systematic Investment Plan (SIP): under this a fixed sum is invested each month on a
fixed date of a month. Payment is made through post dated cheques or direct/auto debit
facilities. The investor gets fewer units when the NAV is high and more units when the
NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA)

2. Systematic Transfer Plan (STP): under this an investor invest in debt oriented fund
and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the
same mutual fund.

3. Systematic Withdrawal Plan (SWP): if someone wishes to withdraw from a mutual fund then he can

withdraw a fixed amount each month.

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 B. OBJECTIVES

 To consumer buying behaviour of Reliance Securities Ltd.

 To determine and analyze the investor view toward Reliance Money Mutual
fund

 To study and determine the competitor position in the market.

 To analyze market share of Reliance Money products

 To analyze the customer satisfaction regarding RELIANCE MONEY

26
 C. RESEARCH METHODOLOGY

RESEARCH OBJECTIVES

The above mentioned review literature would have clearly indicated the two different strategies
to study growth of mutual funds in metero in different income level & age group.

1
4.2 Research Methodology and Design

The research is carried out in three phases:-

1. Phase I- Secondary research phase

During this phase secondary research was done on different mutual fund product available in
market (offered by banks & financial institute) & to identify age group & income level of
customers interested in particular product.

Purpose- The purpose of this phase was to develop the structures questionnaire to be used in this
research, decide on attributes to be used, sampling universe etc.

2. Phase II- Primary Research Phase

During this phase in questionnaire survey were conducted with the respondents and data was
collected. The data was punched and cleaned to remove the outliers.
3. Phase III – Analysis and Recommendation

Perception mapping was done for Market opportunity for Mutual Funds products based on
income level.

1
 C.R. Kothari (1985), Research Design: Research Methodology – Methods & Techniques

27
Recommendations were made based on perception mapping and satisfaction on various attributes
with respect to above observations.

4.2 Research Design

2
According to Aaker, Kumar & Day (2001) descriptive research covers a large proportion of
marketing research. This being a quantitative research which is to decide of how one variable
affects another variable, there are three basic types of research design that is exploratory, casual
and descriptive research design. A descriptive research design is the one that describes
something such as demographic characteristics of consumers who uses a product or a service.
The descriptive study is typically concerned with determining frequency with which something
occurs or how two variables vary. Aaker and George (2000), a descriptive study establishes only
associations between variables. The purpose is to provide an accurate snapshot of some aspect of
the market environment, such as:

- Consumer evaluation of the attributes of one product versus competing products (Opel vs.
Honda).
- The socioeconomic and demographic profiles (of Opel’s and Honda’s customers).

 2
David. A. Aaker, V Kumar & George S. Day, (2001) Descriptive Research: Marketing Research, Seventh Edition,
2
pp 17

28
There are three types of research designs, namely:

(a) Exploratory

(b) Descriptive,

(c) Causative

Source: Marketing management by Rajan Saxena Tata Mc Graw- Hill Company Limited

Exploratory Research: According to Rajan Saxena ,Exploratory research is conducted when the
researcher does not know how and why a certain phenomenon occurs. In doing so, they used
focus groups. Since the prime goal of an exploratory research is to know the unknown, this
research is unstructured. Focus groups, interviewing key customer groups, experts and even
search for printed or published information are some common techniques.

Descriptive Research: Descriptive research is carried out to describe a phenomenon or market

characteristic. Generally, descriptive research is carried out only when the researcher
understands the phenomena or behavioral characteristics.

Causative Research: Causative research is done to establish a cause and effective relationship.
Here the researcher may like to see the effect of rising income and changing life style on
consumption of select products. In a causative research, unlike exploratory or descriptive,
hypotheses are tested. Hypothesis is a statement of predicted outcomes of the research. In
building up a hypothesis, it is important that the researcher understands the phenomena
thoroughly, or a body of research that exists on the subject matter
Descriptive research studies are those study which are concerned with describing the character. It
is move valuable because researcher has no control over the variables what has happened or what
is happening is considered so it is very accurate so we can say it is more valuable.

In this study, for practical reasons, a descriptive approach would be used, considering the
proposed study would embrace the above characteristics of a descriptive study.

29
4.3 Types of Research
In a research when we talk of research methodology, we not only take Research methodology,
but also considered the logic behind the method we used in the contest of our research study and
explain why we are using a particular method. This way we can be stated as under.
1. It relies on empirical evidence
2. it utilize relevant concepts
3. it is committed to only objective consideration
4. it result into probabilistic prediction
In a method particular research problem involve usually the consideration of the followings
- the means of obtaining the information
- Explanation of the way in which related means of obtaining information will be organized
and the reasoning leading to the selection Investing the reasons for human behavior i.e. people
thinks or do certain thinks so we comes for quantitative reaches

Types of research are generally classified into two methodologies, qualitative and quantitative.
Malhotra (2004) defines qualitative research as “An unstructured, exploratory research
methodology based on small samples that provides insights and understanding of the problem
setting” and quantitative research as “a research methodology that seeks to
Quantify the data and, typically applies some form of statistical analysis”. There are merits and
3
demerits of both methodologies (illustrated in following Table 4.1).

3 (Source: McDaniel, C. Gates, R. Marketing Research, 2007, P.128)

30
SAMPLING

The way a researcher plans to draw a sample is related to the best way to collect the data. Certain
kinds of sampling approaches make it easier or more difficult to use one or another data
collection strategy. The researcher will use the sampling technique as opposed to census, because
it enables (Saunders et al, 2003) one to reduce the amount of data one needs to collect by
considering only data from a subgroup rather than all possible cases from the larger group.
Sampling enables the researcher to spend more time on designing and piloting the means of
collecting the data. Sampling technique has been incorporated in this research primarily due to
time constraints, which cannot accommodate the collection of information from each member of
the population and also because of the need for increased accuracy in data collection.

4.3.1 Sampling Process

4
According to Tull & Hawkins (2004), when a decision is made to use a sample, a number of
factors must be taken into consideration. The major activities associated with the sampling
process are (1) identifying the target population, (2) determining the sampling frame, (3)
resolving the differences, (4) selecting a sampling procedure, (5) determining the relevant sample
size, (6) obtaining information for respondents, (7) dealing with the no response public and (8)
generating the information for decision-making purposes.

4.3.2 Determining the Target Population

Sampling is intended to gain information about a population. In this study the population is
clearly defined as100 customers

4.3.3 Selecting a Sampling Procedure

Like sampling distribution of mean, as well have a sampling distribution of proportion. This
happen in case of statistics of attributes. Assume that we have worked out the proportion of

4
 Donald S. Tull & Del I. Hawkins, (2004) Sampling & Data analysis : Marketing Research
– Measurement & Method, pp 537

31
definitive part in large number of samples each with say 100 items that have been taken from an
infinite population and plot a probability distribution of the said proportions,
The test of significance used for dealing with problem relating to large sample and difference
from those used for small sample. This is so because the assumption we make in case of large
sample do not hold good for small sample. In case of large sampling we assume that the
sampling distribution tends to be normal and the sample values are approximately close to the
population value.
The sampling theory for large sample is not applicable in small sample because when sample are
small we can not assume that the sampling distribution is approximately normal.
5
According to Fink & Arlene (2002), a researcher should first choose between using a Bayesian
procedure and a traditional sampling procedure. Non-probability sampling- According to
Aaker, Kumar & Day (2001), In probability sampling, the theory of probability allows the
researcher to calculate the nature and extent of any biases in the estimate and to determine what
variation in the estimate is due to the sampling procedure.
Convenience Sampling- To obtain information quickly and inexpensively, a convenience
sample may be employed. The procedure is simply to contact sampling units that are convenient.
Considering various limitations attached with this study like time, cost etc the most appropriate
method would be to have a non-probability sample of 100 potential car owners comprising 50
customers each from Honda and Opel.

4.4 Types of Data collected for the Study

This research combines both secondary and primary data to achieve research objectives.

4.4.1 Collection of Primary Data

In descriptive type of research the data is collected through surveys, whether sample surveys or
census surveys. In this research the researcher has resorted to sample survey. Then the researcher
can obtain primary data either through observation or through direct communication with
respondents in one form or another or through personal interviews.

5
 Fink, Arlene (2002). How to sample in surveys, Vol. 7. Thousand Oaks, CA: Sage Publications.

32
4.4.2 Interview Method
The interview method of collecting data involves presentation of oral-verbal stimuli and reply in
terms of oral-verbal responses. In the case of direct personal investigation the interviewer has to
collect the information personally from the sources concerned. The researcher has preferred
interview method leaving no air of doubt in the collection process of the data. In this study the
above-mentioned method has been adopted with a pre-determined structured questionnaire to
collect information.

4.4.3 Collection of Secondary Data

6
According to Thorne (1990), Secondary data means data that is already available i.e., it refers to
the data, which have already been collected and analyzed by someone else. Secondary data may
either be published data or unpublished data. Although the researcher has not used the secondary
data for the purpose of analysis this has been extensively used by the researcher to explore
various theories attached with the topic that is brand strategy.

7
Questionnaire Design and Development
This method of data collection is quite popular particularly in case of this type of survey which
we need.
On this method a questionnaire is sent to person concerned with a request to answer the question
and return the questionnaire. A questionnaire consist of a number of questionnaire printed or
typed in a define order on a form or set of form
The merit claimed on behalf of this method are as follows
1. Respondents have adequate time to give well thought out answer.
2. Respondent who are not easily approach can also be reached
3. Results are move dependable and are reliable.

6
 Thorne, S. (1990) Critical Issues in Qualitative Research Methods. London: Sage

7 Oppenheim, A.N. (2003), “Questionnaire Design, Interviewing and Attitude Measurement”, London.
Continuum.

33
McDaniel & Gates (2007) state, “a questionnaire serves many masters. First, it must
accommodate all the research objectives in sufficient depth and breadth to satisfy the information
requirements of the manager. Next, it must ‘speak’ to the respondent in understandable language
and at the appropriate intellectual level. Furthermore, it must be convenient for the interviewer to
administer, and it must allow the interviewer to quickly record the respondent’s answers. At the
same time, the questionnaire must be easy to edit and check for completeness. It should also
facilitate coding. Finally the questionnaire must be translatable into findings that response to the
managers’ original questions.”

4.5 Data Analysis

For any research the purpose of achieving the objectives is a very important criterion. Unless the
information drawn from the survey is properly interpreted and explained the very purpose of a
research cannot be served. Hence data analysis and interpretation is a very important aspect in a
project report. Analysis of data is the process of orderly research objectives. The primary data
collection is in accurate form that is not ready for analysis. So the researcher must take some
measures to bring the data to a form where it can be easily analyzed. The various steps include
editing (modifying, correcting the collected data), coding and tabulation (arranging similar data
together). The analysis is carried using statistical tools like percentages. Percentage is a special
kind of ratio. Percentage is used in making comparison between two or more series of data. Thus
the analysis is totally based on frequency and percentage calculation. Finally meaningful
information is extracted from the analysis. The collected data is illustrated using pie diagram and
bar charts. The conclusions, findings and suggestions are given on the inference drawn from the
analysis.

34
 D. LIMITATIONS

While completing this project there were certain limitations, which made this project more
challenging.

 Meeting the concerned person and taking time was major constraint because of their
busy schedule.

 The respondents were limited and cannot be treated as the whole population.

 The respondents may be biased.

 Time was the major constraint.

 The accuracy of indications given by the respondents may not be consider adequate

35
 E. SCOPE

 This Training will also reveal the investors needs.

 The scope of the Training refers to the job that to know about the activities of the
organization. The Training means that the analysis of the products of the company on
which he/she has to focus.

 The deep study of terms and conditions for mutual funds investments.

 The knowhow of the organization.

36
COMPANY PROFILE

37
 2. COMPANY PROFILE

Reliance Securities Ltd

Reliance Securities Limited is a Reliance Capital company and part of the Reliance Group.
Reliance Securities is a permitted user of the brand "Reliance Money" for promoting its various
products and services.
Reliance Securities endeavors to change the way investors transact in equities markets and avails
services. It provides customers with access to Equity, Derivatives, Portfolio Management
Services, Investment Banking, Mutual Funds & IPOs. It also offers secured online share trading
platform and investment activities in secure, cost effective and convenient manner. To enable
wider participation, it also provides the convenience of trading offline through variety of means,
including Call & Trade, Branch dealing Desk and its network of affiliates.
Reliance Money through its pan India presence with 6,233 outlets, has more than 3.5 million
customers.
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.

Awards & Achievements

 Reliance Securities has been rated no. 1 by Starcom Worldwide for online security and
cost effectiveness in 2007
 'Debutant Franchisor of the Year' at the 5th International Franchisee & Retail show 2007
 'Best in category Service Franchise' at the 6th International Franchise & Retail show 2008
 'Best E-Brokerage Houser 2008' (runner's up) by Outlook Money NDTV Profit Awards
 'Largest E-Broking House & Best Equity Broking House for the year 2009' by Dun &
Bradstreet
 'Largest E-Broking House 2010' by Dun & Bradstreet
 'My FM Stars of the Industry 2011' for excellence in Online Demat
 Reliance Securities Limited is now ISO 9001:2008 certified for Online Trading Platform
 'Brand Leadership Legacy Award' at the Asian Leadership Awards - Dubai, 2011

38
Our Management Team

Reliance Securities is lead by a team of distinguished individuals dedicated towards scaling the
company to greater heights through innovative products and services that create value for our
customers & stake holders.

Our Management Team

Vikrant Gugnani - Executive director

Sanjay Wadhwa - Chief Financial Officer

Suresh T Vishwanathan - Head Compliance

Hitesh Agrawal - Head Research

Delivery Cash

Long-term investments are always beneficial, as they do not respond to daily volatility in the
Stock Market and keep the investor safe. As an Investor, one can avail of delivery based buying /
selling based on the stock fundamentals.

We also provide Fundamental Research calls on Delivery Based Stocks. These are long-term
investment opportunities identified by our Research Desk.

After Market Orders (AMO)

Do not be restricted with market times and invest round the clock by placing After Market
Orders (AMO)

A facility that gives you an option to place orders even after or before the trading hours, using
our online trading platforms.

You can place AMO on both NSE and BSE under Equity and Derivatives.

39
Competitive Tariffs
At Reliance Securities we not only offer customized services but also offer various tariff plans
where you can pick one that best suits your profile.

Trading Intraday

Active traders can take advantage of market movements by leveraging with our unique products.
In addition, we also provide intraday live market calls that help the customer trade efficiently.

All intraday positions need to be squared off before the market closes.

Exposure against Stocks

This product provides trading opportunities to clients by accepting Demat shares as collateral.
The client can pledge these share positions as collateral to gain additional margin.

We provide an intraday limit on defined set of stocks based on a certain haircut percentage.

R-MODEL PORTFOLIO

Investing in any financial market has to have a good investment strategy. If you want to invest,
you must deal with the ups and downs of the market. A good week in the market leaves an
investor with good returns; a bad week may result in even bigger losses.

In order to protect yourself from a market downturn, you must diversify. Effective diversification
through a basket of stocks helps to build stable wealth over a period of time as individual stocks
have different life cycle processes.

R-Model Portfolio* is a tool as well as a service which combines the power of Securities Trading
and Portfolio Allocation to invest in a portfolio of stocks created by the Reliance Securities
Research Team.

Derivative

40
The derivative segment is a market that gives you an opportunity to earn greater profits by
paying a nominal amount of margin. Over past few years, Popularity and Dealings in Future &
Options segment has grown incredibly. Future contracts are available on Equities, Indices,
Currency and Commodities.
You may be a new or a seasoned investor, our derivatives product offering will suite you the
best. Our Strong research supports on derivatives segment, will always help you make
appropriate decisions
You can trade in Futures and Options under NSE.
Products enabled are MIS and NRML
MIS provides intraday leverage
NRML for taking carry forward positions
If positions in derivatives segment are taken against collateral, Delayed payment Charges (DPC)
will be levied on the debit amount from T day onwards.

Currently not available for NRI Customers

Company history

Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmedabad in Gujarat as
Reliance Capital & Finance Trust Limited. The name RCL came into effect from January 5,
1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to
Mumbai in Maharashtra, in 2006.
In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the
shareholder base of RCL rose from 0.15 million shareholders to 1.3 million.
RCL entered the Capital Market with a maiden public issue in 1990 and in subsequent years
further tapped the capital market through rights issue and public issues. The equity shares were
initially listed on the Ahmadabad Stock Exchange and The Stock Exchange Mumbai. Presently
the shares are listed on The Stock Exchange Mumbai and the National Stock Exchange of India.
RCL in the initial years engaged itself in steady annuity yielding businesses such as leasing, bill
discounting, and inter-corporate deposits. Later, in 1993 diversified its business in the areas of
portfolio investment, lending against securities, custodial services, money market operations,
project finance advisory services, and investment banking.

41
RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of India
(SEBI). It had lead managed/co-managed 15 issues of an aggregate value of Rs. 400 crore and
had underwritten 33 issues for an aggregate value of Rs. 550 crore. All these companies were
listed on various exchanges.
RCL obtained its registration as a Non-banking Finance Company (NBFC) in December 1998. In
view of the regulatory requirements RCL surrendered its Merchant Banking License.
RCL has since diversified its activities in the areas of asset management and mutual fund; life
and general insurance; consumer finance and industrial finance; stock broking; depository
services; private equity and proprietary investments; exchanges, asset reconstruction; distribution
of financial products and other activities in financial services.

Reliance vision
Reliance Capital's vision is that:
By 2015, it will be a company that is known as:
"The most profitable, innovative, and most trusted financial services company in India and in the
emerging markets".
In achieving this vision, the company will be both customer-centric and innovation-driven.

Business overview

Reliance Capital, a constituent of CNX Nifty Junior and MSCI India, is a part of the Reliance
Group. It is one of India's leading and amongst most valuable financial services companies in the
private sector.

Reliance Capital has interests in asset management and mutual funds; life and general insurance;
commercial finance; equities and commodities broking; investment banking; wealth management
services; distribution of financial products; exchanges; private equity; asset reconstruction;
proprietary investments and other activities in financial services.

Reliance Mutual Fund is amongst top two Mutual Funds in India with over seven million
investor folios. Reliance Life Insurance and Reliance General Insurance are amongst the leading

42
private sector insurers in India. Reliance Securities is one of India’s leading retail broking
houses. Reliance Money is one of India’s leading distributors of financial products and services.

Reliance Capital has a net worth of Rs. 11,696 crore (US$ 2.3 billion) and total assets of Rs.
35,344 crore (US$ 6.9 billion) as on March 31, 2012.

43
Business mix of Reliance Capital

Asset Management Mutual Fund, Offshore Fund, Pension fund, Portfolio

Management

Insurance Life Insurance, General Insurance

Commercial Finance Mortgages, Loans against Property , SME Loans, Loans for
Commercial Vehicles, Loans for Construction Equipment,
Auto Loans, Business Loans, Infrastructure financing

Broking and Distribution Equities, Commodities and Derivatives, Wealth

Management Services, Portfolio Management Services,
Investment Banking, Foreign Exchange, Third Party
Products

Other Businesses Exchanges, Private Equity, Institutional Broking, Asset

Reconstruction, Venture Capital

44
Reliance mutual fund

Reliance Mutual Fund (RMF) is amongst top two Mutual Funds in India, with Average Assets
Under Management (AAUM) of Rs. 78,112 crore (US$ 15.3 billion) for the quarter ended March
31, 2012.
RMF offers a well-rounded portfolio of products that meet varying investor requirements.
Reliance Mutual Fund constantly endeavors to launch innovative products and customer service
initiatives to increase value to investors.
RMF has nearly seven million investor folios and a wide distribution network with presence in
over 250 branches across India. In addition it has offices in Dubai, Singapore, Mauritius and UK.

Reliance life insurance

Reliance Life Insurance Company Limited (RLIC) is amongst the leading private sector life
insurers with a private sector market share of over 5% in terms of new business premium. RLIC
has a strong distribution network of 1,230 offices across India, with over 1,50,000 agents as at
March 31, 2012.

RLIC offers wide range of innovative life insurance products, targeted at individuals and groups.
It offers need based products that caters to three distinct segments namely protection, retirement
and investment plans. RLIC is committed to emerge as a leading Life Insurer with global scale
and standards.

Reliance commercial fineness

Reliance Commercial Finance aims to enable people to fulfil all their ambitions by creating
assets for personal & business requirements.
It offers an exhaustive suite of financial solutions – Mortgages Loans, Loans against property,
Loans for Commercial Vehicles, Loans for Construction Equipment, SME Loans, Auto Loans,
business loans and Infrastructure Financing What’s more, with the help of our easy-to-use loan
calculator, you can decide on the tenure, interest rate and the loan amount that best suits you.
Reliance Commercial Finance has a loan book size of Rs. 13,239 crore (US$ 2.6 billion), with a
customer base of over 94,000 customers, as on March 31, 2012, across the top 18 Indian metros.

45
Reliance Commercial Finance prides itself in creating customized financial solutions for our
partners and customers by offering great Turnaround Time.

Reliance General Insurance

Reliance General Insurance (RGI) offers a range of products for the corporate and individual
customers. RGI currently offers insurance products including Health, Home, Motor, Travel, Fire,
Engineering, Marine, Liability and Aviation.
RGI is amongst the leading general insurance companies in India, with a private sector market
share of 8%. RGI had a distribution network composed of 151 branches and over 6,500
intermediaries at the end of March 2012.
International Businesses

Reliance Capital Limited intends to be a well-respected global player in the international

financial services sector. It is present in Singapore, Malaysia, United Kingdom and United Arab
Emirates.

Singapore

Reliance Asset Management (Singapore) Pte. Ltd. (RAMS) is a private limited company with
limited liability and is regulated by the Monetary Authority of Singapore (MAS). RAMS holds a
Capital Markets Services (CMS) license issued by MAS, for carrying out fund management
activities under the Securities and Futures Act (SFA). It was set up as an offshore fund platform
of Reliance Capital Asset Management Limited in 2006 for managing/advising mandates from
global institutional and accredited investors. The core activity of RAMS is asset management
focusing on India equities, alternative & fixed income instruments. RAMS has in-house
capabilities to structure and manage customized mandates and new product offerings to meet
specific client requirements. RAMS is also a registered Foreign Institutional Investors (FII) with
Securities & Exchange Board of India.

Malaysia

Reliance Asset Management Malaysia Sdn Bhd (RAMMy) has been incorporated to undertake
Islamic Asset Management under the license of The Securities Commission of Malaysia.

46
RUMMy aims to become the provider of choice within Islamic Asset Management by launching
unique Shariah-compliant investment strategies to complement investor’s portfolios with the
ultimate focus on wealth creation.

United Kingdom and United Arab Emirates

Reliance Capital Asset Management (UK) Plc is a Financial Services Authority (FSA)
authorized investment advisory business based in United Kingdom

Reliance Capital Asset Management (UK) plc also established a branch in Dubai International
Financial Centre in 2009. It has commenced operations after receiving a license from Dubai
Financial Service Authority. The DIFC based entity provides a full range of Wealth and
Investment Advisory Services to professional investors and institutional clients in the region. By
establishing this branch RCAM (UK) plc intends to expand its operations throughout the UK,
GCC and Africa.

National Pension System

Reliance Capital Limited was appointed as one of the Points of Presence (POP) for distribution
of Government of India’s Pension Plan under the New Pension System (NPS). The pension plan
is open to all the citizens of India. Interested citizens can open their account in any of the
designated Reliance Capital branches spread across the country.
1. Electronic Clearing Service (ECS) Auto Debit Mandate Form
2. Banks list for ECS
3. Branch List
4. New Offer document
5. New composite application form of NPS
6. New Contribution Instruction Slip
7. Subscriber change request form
8. Scheme Preference Change form
9. Withdrawal request from Tier II
10. Swavalamban Declaration form

47
Our Pedigree
Reliance Securities comes from the house of Reliance Capital, one of India’s leading &
prominent financial houses.
Founded in 1986, Reliance Capital has come a long way from being into steady annuity yielding
businesses such as leasing, bill discounting, and inter-corporate deposits to diversifying its
activities in the areas of asset management and mutual fund; life and general insurance;
consumer finance and industrial finance; stock broking; depository services; private equity and
proprietary investments; exchanges, asset reconstruction; distribution of financial products and
other activities in financial services. Reliance Capital has a net worth of Rs. 7,887 crore (US$ 2
billion) and total assets of Rs. 32,419 crore (US$ 7 billion) as on June 30, 2011.

The Mutual Fund has launched so many Schemes till date; some of them are
as follow:

S.No. Name of the Scheme Inception Year

1. Reliance Growth Fund September 1995

2. Reliance Vision Fund September 1995
3. Reliance Income Fund December 1997
4. Reliance Liquid Fund March 1998
5. Reliance Medium Term Fund August 2000
6. Reliance Short Term Fund December 2002
7. Reliance Fixed Term Scheme March 2003
8. Reliance Banking Fund May 2003
9. Reliance Gilt Securities Fund July 2003
10. Reliance Monthly Income Plan December 2003
11. Reliance Diversified Power Sector Fund March 2004
12. Reliance Pharma Fund May 2004
13. Reliance Floating Rate Fund August 2004

48
14. Reliance Media & Entertainment Fund September 2004
15. Reliance NRI Income Fund October 2004
16. Reliance NRI Equity Fund October 2004
17. Reliance Equity Opportunities Fund February 2005
18. Reliance Index Fund February 2005
19. Reliance Fixed Maturity Fund – Series I March 2005
20. Reliance Fixed Maturity Fund – Series II April 2005
21. Reliance Regular Savings Fund May 2005
22. Reliance Liquidity Fund June 2005
23. Reliance Tax Saver (ELSS) Fund July 2005
24. Reliance Fixed Tenor Fund November 2005
25. Reliance Equity Fund February 2006
26. Reliance Fixed Horizon Fund April 2006
27. Reliance Fixed Horizon Fund I August 2006
28. Reliance Fixed Horizon Fund II November 2006
29. Reliance Long Term Equity Fund November 2006
30. Reliance Fixed Horizon Fund III March 2007
31. Reliance Interval Fund March 2007
32. Reliance Money Manager Fund March 2007
33. Reliance Equity Advantage Fund June 2007
34. Reliance Fixed Horizon Fund IV August 2007
35. Reliance Fixed Horizon Fund V September 2007
36. Reliance Gold Exchange Traded Fund October 2007
37. Reliance Equity Linked Saving Fund - Series I December 2007
38. Reliance Fixed Horizon Fund VI December 2007
39. Reliance Natural Resources Fund January 2008
40. Reliance Fixed Horizon Fund VII January 2008
41. Reliance Fixed Horizon Fund VIII March 2008
42. Reliance Fixed Horizon Fund IX March 2008
43. Reliance Banking Exchange Traded Fund May 2008

49
44. Reliance Fixed Horizon Fund X August 2008
45. Reliance Fixed Horizon Fund XI October 2008
46. Reliance Fixed Horizon Fund XII November 2008
47. Reliance Infrastructure Fund June 2009
48. Reliance small. Cap. September 2010
49. Reliance index fund –NIFTY PLAN September 2010

50
3. DATA ANALYSIS AND

INTERPRETATION

51
 3. DATA ANALYSIS AND INTERPRETATION

In this chapter, analysis & Study of the data obtained form respondent is done.
Table No.1.1
Age of the RESPONDENT

50

45

40
35
respondent 30

25
Series1
20

15
10

5
0
30 & under 31 to 40 41 to 55 56 to 65
Age

Age Respondent
30 &
under 25
31 to 40 47
41 to 55 25
56 to 65 3

Inference: these finding are obtained after the analysis of questionnaire.

From the above table it is inferred that
 47% of the respondent are in between 31 years to 40 year
 25% of the respondent are under 30
 25 % of the respondent are in between 41 years to 55 year
 3 % of the respondent are in between 56 years to 65 year

52
2) Income of respondent

45
40

35
30
Resp
onde 25
nt
20 Series1
15
10

5
0
Rs 100000 Rs 100001 Rs 300001 Rs 600001
Over 10 lac
to 3 lac to 6 lac to 10 lac
Income

Income respondent
Rs 100000 0
Rs 100001 to 3
lac 15
Rs 300001 to 6
lac 20
Rs 600001 to
10 lac 40
Over 10 lac 25
Inference:-

3) Investment Objective:-

53
 80
70
respo 60
ndent 50
40 Series1
30
20
10
0
a
l e e t
h h
ip m m w w
t

c o o o o
c c
r

in r
r in in G G

f P t e
n d v e
iv
o e n
i

r a
a
t s
n s
r

io u h r
v
e
e
t

t C r
a ow s g
G o A
v r n g
r

e
s C
r
e

P
investment Obejective

Investment Obejective Respondent

Preservation of Principal 0
Current income 0
Growth and income 20
Conservative Growth 10
Aggressive Growth 70

54
4) Income growth

120

100

Resp 80
onde
nt 60 Series1

40

20

0
Decrease Decrease Remain about increase
dramatically slightly the same dramatically
Income growth

Income growth
Decrease dramatically 0
Decrease slightly 0
Remain about the same 0
increase dramatically 100

Inference: Most of the respondent says that income growth increase dramatically

55
5) MF Knowledge

60

50

Respo 40
ndent
30 Series1
20

10

0
Very little Some Moderate Good Extensive
knowledge knowledge amount of working knowledge.
knowledge knowledge Expert in
investing.
MF Knowledge

MF Knowledge Respondent
Very little knowledge 0
Some knowledge 10
Moderate amount of knowledge 15
Good working knowledge 25
Extensive knowledge. Expert in investing. 50

Inference: Half of the respondent have Extensive knowledge. Expert in investing about the
mutual Fund

56
6) Past Investment

45
40
35
30
25
20 Series1
15
10
5
0
Savings Mutual funds Balanced Mutual finds individual many
accounts and investing in mutual funds investing in stocks and different
PIOs bonds stocks bonds financial
instruments,
including
stocks,
bonds, real
estate, and

Savings accounts and PIOs 0

Mutual funds investing in bonds 0
Balanced mutual funds 2
Mutual finds investing in stocks 28
individual stocks and bonds 40
many different financial instruments, including stocks, bonds, real estate,
and higher risk investment 32

Inference: 32% of the respondent have many different financial instruments, including stocks,
bonds, real estate, and higher risk investment.

57
7)

Respondent

70
60
50
40
30 Respondent

20
10
0
Investment with a Investment with a Investment with a Investment with a
20-year average 20-year average 20-year average 20-year average
annual return of annual return of annual return of annual return of
4%, 6%, 10%, 12%,

Attitude Respondent
Investment with a 20-year average annual return of 4%, 10
Investment with a 20-year average annual return of 6%, 12
Investment with a 20-year average annual return of 10%, 18
Investment with a 20-year average annual return of 12%, 60

Inference: 60% of the respondent have Investment with a 20-year average annual return of 12%,

58
8)

100
90
80
70
60
50 Series1
40
30
20
10
0
Minor fluctuations in Some fluctuations Noticeable monthly Noticeable daily
the value of your in the value of your fluctuations in the fluctuations in the
account, but account, but earn a value of your value of your
consistently earn a modest return. account, but earn a account, but earn
lower return on your higher return. the highest possible
investments return.

Preference Respondent

Minor fluctuations in the value of your account, but consistently earn a lower
return on your investments 0

Some fluctuations in the value of your account, but earn a modest return. 2
Noticeable monthly fluctuations in the value of your account, but earn a higher
return. 12

Noticeable daily fluctuations in the value of your account, but earn the highest
possible return. 86

Inference: 86% of the respondent have Noticeable daily fluctuations in the value of your
account, but earn the highest possible return.

59
4. OBSERVATION AND

FINDINGS

60
 4. OBSERVATION AND FINDINGS

Findings

 Financial advisors know very less about benefits of MF and its business. They have a
perception that there is no potential earning in MF business.

 Investors of younger age invest generally in equity funds whereas older age
investors invest in debt funds.

 Investing through MF is best way for capital appreciation within protection in

comparison to investing directly in equity market and other investment avenues.

 Some schemes of each AMC perform well which have a good Fund Manager and
well designed Portfolio.

61
5. CONCLUSION

62
 5. CONCLUSIONS

Life has suddenly started resembling an adventure movie- with the startling pace at which
things around us are changing everyday!! It’s not just the economic events which consume most
of the space in media these days, but also other geopolitical events like US presidential elections;
the MNS propaganda in Mumbai; blasts in Assam and violently fluctuating stock market
movements everyday- volatility seems to be at an all-time high!!

Well, coming to the topic of this article, I have been spending some of my time in the past few
days trying to figure out the manner in which I can best utilize the cash lying idle in my bank
account. Everyone these days is talking about cash being the king; but cash lying idle in a
savings bank account can’t even cover inflation. It’s my effort through this article to share some
ways which I think can be useful in managing our wealth and making our cash work!!

Over the next few paragraphs, I have mentioned the different asset classes where our money can
be invested; the importance of diversification; tax benefits on investment and an arbitrage
opportunity which can fetch you a small (but risk-free) return. The ideal candidate I have in
mind while writing this article is a salaried individual who falls in the highest income tax
bracket; is yet unmarried and has a time horizon of at least 8-10 years to build a substantial
portfolio.
Above analysis proves. Market opportunity for Mutual Funds products based on income level.

Growth potential for Mutual Fund is excellent

63
6. RECOMMENDATIONS

64
 6. RECOMMENDATIONS

 The AMCS should try to minimize their risk FACTOR AND TRY THEIR

BEST to enhance their return percentage.

 The company should give personal attention to each customer.

 Proper assistance should be provided to the customer at the time of

claim settlement.

 All the details about the company should be given to the customers.

 Regular advertisement of the company should be given TV and Newspaper.

 Local languages should be used in brochures of the company to attract more

65
BIBLIOGRAPHY

66
 BIBLIOGRAPHY

 Bhalla V.K. (2001), Financial Management & Policy II Edition, Anmol

Publications, New Delhi

 Khan & Jain(1997), Financial Management and Policy, Tata Mc Graw Hill, New

Delhi

 Kothari C.R. (2000), Research Methodology, Wishwa Prakashan, New Delhi

 Prasanna Chandra (1999), Financial Management, Tata McGraw Hill, New Delhi.

 Rustagi R.P. (2002), Financial Management, Galgotia Publication, New Delhi.

 Sharma & Gupta (2001), Financial Management, Kalyani Publication, New Delhi.

WEBSITES

 www.karvy.com

 www.investopedia.com

 www.UTI.com

 http://www.UTIpruamc.com/aboutus1.html

 www.appuonline.com.

 www.valuesearchonline.com

 www.itrust.in.

 http://www.itrust.in/content/mutual-funds/research/February-2009-Mutual-Fund-
Industry-Update

 http://www.appuonline.com/mf/knowledge/industry.html

67
ANNEXURE

68
 ANNEXURE

1. Your age is :

(a) 30 and under (b) 31 to 40 (c ) 41 to 55 (d) 56 to 65 (e) Over 65

(25) (15) (8) (4) (0)

2. Your average household tax annual income from all sources (e.g.,employment,
investments, etc) is:

(a) Under Rs. (b) Rs. 100001 (c ) Rs. 300001 (d) Rs. 600001 to (e) Over Rs.
100000 to 300000 to 600000 1000000 1000000
(0) (2) (8) (10) (12)

3 Investment objective: What is your primary objective for your investment?

(a) Preservation of (b) Current (c ) Growth (d) Conservative (e) Aggressive

Principal income and income Growth Growth
(0) (2) (4) (6) (8)

4 How do you expect your current income to change? You can't invest more than you have, so
you should invest accordingly. For example, a steep decline in your current income in the
near future would probably call for a portfolio with lower risk. Select the statement below
that best reflects your specific requirements for this investment: Forecasting your probable

69
 future earnings.
(a) Decrease (b) Decrease (c ) Remain about (d) increase
dramatically slightly the same dramatically
(0) (4) (4) (8)
Note ; Increased earnings in the future can justify aggressive profile.

5 You would describe your knowledge about investments as being :

(a) Very little (b) Some (c ) Moderate (d) Good working (e) Extensive
knowledge knowledge knowledge.
amount of
knowledge Expert in
knowledge investing.
(0) (2) (4) (6) (8)

6 In the past, you have invested mostly in (choose one) :

(a) Savings (b) Mutual (c ) Balanced (d) Mutual (e) individual (f) many
accounts and funds mutual funds finds stocks and different
PIOs investing in investing in bonds financial
bonds stocks instruments,
including
stocks, bonds,
real estate, and
higher risk
investment (eg.
Commodities,
options, futures
etc.)
(0) (0) (2) (6) (8) (10)

70
7. Which of the following best describes your style, attitude or preference towards
Birla Mutual investment? which of the following are you likely to invest in?

(a) Investment with a (b) Investment with (c ) Investment with a (d) Investment with a
20-year average a 20-year average 20-year average 20-year average annual
annual return of 4%, annual return of 6%, annual return of 10%, return of 12%, many
infrequent and slight mostly positive several periods of periods of substantially
downturns,no returns, negative positive returns and positive returns,
negative returns return less than a yr. negative returns.
(12) (10) (6) (0)

8. You would prefer to have :

(a) Minor (b) Some (c ) Noticeable (d) Noticeable daily

fluctuations in the fluctuations in the monthly fluctuations fluctuations in the
value of your value of your in the value of your value of your
account, but account, but earn a account, but earn a account, but earn the
consistently earn a modest return. higher return. highest possible
lower return on your return.
investments.
(0) (2) (12) (16)

71