SUMMER TRAINING

ON

Share Trading and Mutual Fund

“A CUSTOMER PERSPECTIVE”

JAIPURIA INSTITUTE OF MANAGEMENT

LUCKNOW
By

Sunil Kumar Singh

Regt. No. CFT08_149
PGDM (2008-10)

EXECUTIVE SUMMARY
I have done my summer internship in RELIANCE MONEY. During
my stint, I was exposed to theoretical as well as practical
learning. My project starts with an overview of the Indian capital
market and the profile and history of Reliance Money. It lists the
various activities handled by reliance money. A flaw of any
department can cause us lots of problem and hence we have to
be very cautious about the same. The project contains the
workflow of the operation unit of Reliance Money and the
implementation of various process of extracting from capital
market segment.
 ACKNOWLEDGEMENT
It has been very enriching experience working in “RELIANCE MONEY”
(Anil Dhirubhai Ambani Group), Agra (U.P.). This department deals
with all products like DMAT A/c, Share Trading, Mutual Fund, Life
Insurance and General Insurance etc.

I am extremely thankful to everyone who has helped me to give this

project its present form. I am very thankful to Mr. Saurabh Jain
(Center Manager) and Mr. Amit Dixit (Cluster Manager) for
providing me the opportunity to undergo the practical training in the
Sales and Distribution Division of Reliance Money Limited under
the supervision of Mr. Sandeep Bhatt (Assistant Center Manager). He
guided me from time to time and gave me dynamic ideas and
suggestions by which I am able to complete my training successfully.

I am thankful to the. Reliance Money Limited staff members who

made me feel comfortable during my training period & helping me in
completion of work assigned during the training period.
I sincerely thank all the visible and non-visible hands, which helped
me to complete the practical training with great success. I also
thankful to Mr. Shamendra Jain to giving me full support in
completion my project.
Last but not least I would like to thank my family who have always
encouraged me and taught me to think and work out innovatively,
whatsoever is the field of life .To be very candid, whatever I know
about marketing concept that has been possible due to the well
managed intense training education imparted under conditions,
which are quite conducive to learning, at my institute Jaipuria
Institute of Management, Lucknow.

Education and acquisition of knowledge has no limits or boundaries.

It is an ever – expanding field and we need to keep our faculties
straight and absorb this vast ocean of knowledge, as much as we
can. Doing things we not only widen our personal horizons but also
able to present ourselves as a more intelligent being in front of
other.

SUNIL KUMAR
SINGH
PREFACE

A project report describes plan of any activities undertaking. We

may say that the project reports describe various activities of the
concern. It gives us practical aspect of the concerning subject.

The numbers and importance of project report operating is

growing at a very fast pace in the society. We now are in need of
input form the different strata of the society such that the project
report is very suitable for detailed study in any area.

I have been assigned to submit a project report on

Share Trading and Mutual Fund

“A CUSTOMER PERSPECTIVES”

Basis: Reliance Money

The scope and need of this project was to have an in-depth

knowledge of Share Trading & how it can be implemented in our
present economical perspective. It also includes a detailed
analysis of advantages Mutual Fund.

TABLE OF CONTENTS

 INTRODUCTION
Objective of the study
Industry profile
 Company products
 ABOUT SHARE TRADING AND MUTUAL FUND

 RESEARCH METHODOLOGY
Secondary Research
Primary Research
Sampling Design
Survey technique
Research Tools
 RESULTS OF THE STUDY
 RECOMMENDATIONS
 CONCLUSIONS
 BIBLIOGRAPHY
 WEBLIOGRAPHY

OBJECTIVE
The main objective of training is to aware students about new
market concept & industrial environment in which they have to
work after the completion of their course
It is not possible for students to master everything in this
short span of time. But it does help the students in knowing about
what is happening in the market & new technologies & trends that
are prevalent in the market.

My objective during the summer training was to learn about

all the products. The company provides the knowledge about the
online share trading, DMAT A/C, mutual fund and Life Insurance.
It gave the basic knowledge as well as the concept behind these. I
also learned about how to deliver the products in front of the
customers. It was a good learning that how to interact with the
different kind of customer in the market.
Therefore I have selected a topic for the project which is
related to customer perspective about share trading and mutual
fund with reference to Reliance Money.
 ANIL AMBANI PROFILE

Born: June 4, 1959

Achievement: Chairman of Anil Dhirubhai Ambani Group; Chosen

as the 'CEO of the Year 2004' in the Platts Global Energy Awards
and MTV Youth Icon of the Year' in September 2003.

Anil Ambani is one of the foremost entrepreneurs of Independent

India. He is the Chairman of Anil Dhirubhai Ambani Group. Earlier,
before the split in the Reliance Group, Anil Ambani held the post
of Vice Chairman and Managing Director in Reliance Industries
Limited (RIL).
Born on June 4, 1959, Anil Ambani did his Bachelors in Science
from the University of Bombay and Masters in Business
Administration The Wharton School at the University of
Pennsylvania.
Anil Ambani joined Reliance in 1983 as Co-Chief Executive Officer.
He pioneered India Inc's forays into overseas capital markets with
international public offerings of global depository receipts,
convertibles and bonds. Starting from 1991, he led Reliance in its
efforts to raise, around US$2 billion from overseas financial
markets. In January 1997, the 100-year Yankee bond issue was
launched under his stewardship.
After the split in Reliance Group, Anil Ambani founded Anil
Dhirubhai Ambani Group. He is the Chairman of all listed Group
companies, which include: Reliance Communications, Reliance
Capital, Reliance Energy and Reliance Natural Resources Limited.
Anil Ambai was elected as an independent member Rajya Sabha
MP in June 2004. But he resigned voluntarily on March 25, 2006.
Anil Ambani has won several awards and honors. Major among
these include: 'CEO of the Year 2004' in the Platts Global Energy
Awards, 'MTV Youth Icon of the Year' in September 2003, 'The
Entrepreneur of the Decade Award' by the Bombay Management
Association, and 'Businessman of the Year Award' by leading
Business Magazine, Business India in 1997.

INDUSTRY PROFILE

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 companies, in
terms of net worth.

The company has interests in asset management and mutual

funds, life and general insurance, private equity and proprietary
investments, stock broking and other activities in financial
services.

Reliance Money is a group company of Reliance Capital; one of

India's leading and fastest growing private sector financial
services companies, ranking among the top 3 private sector
financial services and banking companies, in terms of net worth.
Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani
Group.

Reliance Money is a comprehensive electronic transaction

platform offering a wide range of asset classes. Its endeavour is to
change the way India transacts in financial markets and avails
financial services. 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.

COMPANY PRODUCTS

Reliance Money is a comprehensive solutions provider offering a

complete basket of financial services. Through Reliance Money,
currently, a customer will be able to transact amongst others, in
equity and commodity, derivatives, offshore investments, IPO’s,
mutual funds and insurance products.
At the present the company has more than 350 employees across
75 locations with a total number of 42 offices.

Reliance Money can be segregated into four main products which

include:

1. Reliance Life Insurance Plans

2. Reliance General Insurance Policies
3. Reliance Mutual Funds
4. Reliance On Line Trading Facility

RELIANCE LIFE INSURANCE

With the largest number of life insurance policies in force in the

world, Insurance happens to be a mega opportunity in India. It’s a
business growing at the rate of 15-20% annually and presently is
of the order of Rs450 billion. Together with banking services, it
adds about 7% of the country’s GDP. Gross premium collection is
nearly 2% of GDP and funds available with LIC for investments are
8% of GDP.

A well-developed and evolved insurance sector is needed for

economic development as it provides long-term funs for
infrastructure development and at the same time strengthens the
risk taking ability. It is estimated that over the next ten years India
would require investment of the order of one trillion US dollar. The
Insurance sector, to some extent, can enable infrastructure
development to sustain economic growth of the country.

GENERAL INSURANCE

The history of General Insurance dates back to the Industrial

Revolution in the west and the conquest of sea-faring trade and
commerce in the 17th century. It came to India as legacy of British
occupation. General Insurance in India has its roots in the
establishment of Triton Insurance Company Ltd., in the year 1850
in Calcutta by the British. In 1907, the Indian Mercantile Insurance
Ltd., was set up. This was the first company to transact all classes
of general insurance business.

1957 saw the formation of General Insurance Council, a wing of

the Insurance Association of India. The General Insurance Council
framed a code fro ensuring fair conduct and sound business
practices.

In 1968, the Insurance Act was amended to regulate investments

and set minimum solvency margins. The Tariff Advisory
Committee was also set up then.

This millennium has seen insurance come a full circle in a journey

extending to nearly 200 years. The process of re-opening of the
sector had begun in the early 1990s and the last decade and
more has seen it been opened up substantially. In 1993, the
government set up a committee under the chairmanship of RN
Malhotra, former Governer of RBI, to propose recommendations
for reforms in the insurance sector. The objective was to
complement the reforms initiated in the financial sector. The
committee submitted its report in 1994, where in, amongst other
things, it recommended that the private sector be permitted to
enter the insurance industry. They stated that foreign companies
be allowed to enter by floating Indian companies, preferably a
joint venture with Indian partners.

The non-life/general insurance business continued to thrive with

the private sector till 1972. Their operations were restricted to
organized trade and industry in large cities. The general insurance
industry was nationalized in 1972. With these nearly 107 insurers
were amalgamated and grouped into four companies- National
Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company. These
were subsidiaries of the General Insurance Company (GIC).

General Insurance is another segment, which has been growing

very fast. But as peer the current comparative statistics, the
general Insurance Premium as a percentage GDP was mere 0.5%
in 1996.

In the General Insurance business, General Insurance Corporation

(GIC) and its subsidiaries viz., New India Insurance, Oriental
Insurance, National Insurance and United India Insurance are
doing major growing at a rate of 19% per year.

CONCEPT OF MUTUAL FUNDS

A Mutual Fund is 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 instrument such as
shares, debentures and other securities. The income earned
through these investments and capital appreciations realized are
shared by its unit holders in proportion to the number of the units
owned by them. Thus, a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to
invest in a diversified, professionally managed basket of securities
at a relatively low cost. The flow chart below describes broadly
the working of a mutual fund:

Reliance Money – New online trading platform from reliance

Capital

Reliance capital entered into online trading business through

“Reliance Money”. Reliance Money is offering highly competitive
brokerage fees with the option for “fixed flat fee structure”.

Reliance Money is a group company of Reliance Capital; one of

India's leading and fastest growing private sector financial
services companies, ranking among the top 3 private sector
financial services and banking companies, in terms of net worth.
Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani
Group.

Reliance Money which commenced commercial operations in April

2007 has over 300,000 customers and 4,300 outlets in more than
3,500 locations across India.
Reliance Money is a comprehensive electronic transaction
platform offering a wide range of asset classes. Its endeavour is to
change the way India transacts in financial markets and avails
financial services. 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 Money, promoted by Anil Dhirubhai Ambani Group firm

Reliance Capital, would offer the brokerage services across 700
cities including Delhi and Mumbai through 3,000 outlets.

Reliance Money consumers can trade in equities, commodities

and offshore investments, IPOs, mutual funds, insurance and
money transfer.
Reliance Money offers lowest brokerage for Day Traders

Reliance Money (owned by Reliance Capital) is offering lowest

brokerage for trading in stock markets in India. The company is
offering a value package under which one can do trading at very
low cost. Reliance is also offering demat, insurance and mutual
fund services. Reliance money has different options for Beginner,
Moderate Traders and Heavy Traders. This is a single window for
Banking, Trading and Demat Account. The clients can easily
transfer funds across accounts.

Your account is safeguarded with a unique security number that

act as a dynamic password and changes every 32 seconds.
Reliance Money also offers Risk Analyzer for analysis of your risk
profile.

The introductory offer includes.

• You pay Rs 500 and you get Day Trading limit of Rs 5 Lac
• Pay 500 more and get Day Trading limit of Rs 1 Crore
• Pay Rs 1350 and get Day Trading limit of Rs 5 Crore.
Indiabulls is offering 5 paisa (per Rs 100) for day trading and with
taxes and stamp duty, your cost becomes nearly 6 paisa per Rs
100. They will provide you with software and the interface is
almost similar to your traditional broker terminal. You can put
orders in real time and see many stats for stock markets. If you
are active day trader, Indiabulls will also send you daily contract
notes. Their website also offers facility to download the contract
notes. The customer care executive or your personal account
manager will be always at your help in case you need any
information or you are stuck somewhere. Overall, their services
are good and the network is well developed all over India.
5 Paisa is also offering a price similar to Indiabulls. The offer
additional advice and some tips to their clients.
While, Mansukh offers similar price, they have additional benefit
that they only charge you if you make profits.
Indiabulls offers stock research and tips in case you are active day
trader.
Please note that we are not having any connection with any of
these brokerage houses. We are only providing it as information
for our visitors. You should consult your friends or financial advisor
before making final decision.

Is Reliance Money the best platform for online trading in India? Is

it better than Kotak and Sharekhan?
Yes. Reliance Money has certain features that make it much
better than Kotak and Sharekhan
However, its you who is trading and you have to decide
accordingly. Reliance offers you the best interface and also
service. The main reason why people are shifting to Reliance is
the cost factor. People used to pay a heavy brokerage all these
days. With Reliance money, you are just paying a flat fee of Rs
250 per month as brokerage and you can trade up to Rs. 1 crore.
When you use the 1 crore limit, you can again recharge the
account for Rs. 250 and continue. It’s very simple

I am a dealer for Reliance Money and I think, it’s my duty to

furnish all the details to ensure that you get the total information.
So, I have added some additional information which will tell you
more details about Reliance Money
Reliance Money- a single window for all your financial transaction
needs

About Reliance Money

We all know the effect of the word Reliance on us, a company

which has entered almost every arena of business and created
wonders. Every project taken up by the company turns into a
golden project. The company has something, which we can call
as, The Midas Touch. Well, Reliance Money is the electronic
transaction platform associated with Reliance Capital; one of
India's leading and fastest growing private sector financial
services companies, ranked amongst the top 3 private sector
financial services and banking companies, in terms of net worth

what is Reliance Money?

Reliance Money offers a comprehensive platform, offering an

investment avenue for a wide range of asset classes. Its endeavor
is to change the way India transacts in financial markets and
avails financial services. Reliance Money offers a single window
facility, enabling you to access, amongst others Equity, Equity and
Commodity Derivatives, Offshore Investments, IPO’s, Mutual
Funds, Life Insurance and General Insurance products

Why Reliance Money?

Reliance Money is the most cost-effective, convenient and secures

way to transact in a wide range of financial products and services.
The highlights of Reliance money's offerings are:

Cost-effective
The fee charged by the affiliates of Reliance Money, through
whom the transactions can be placed, is among the lowest
charged in the present scenario. Pay a flat fee of just Rs. 500/-
valid for 2 months or specified transactional value
Note: The facility of trading is subject to expiry of the validity
period or value limit, whichever comes first

Fee structure and validity limits

Access fee- Rs. 500
Validity- Time validity of 2 months or Turnover validity of Rs. 1 cr.,
whichever is earlier
Turnover limit- Non-delivery turnover of Rs. 90 lac, Delivery
turnover of Rs. 10 lac
Access fee- Rs. 1350
Validity- Time validity of 6 months or Turnover validity of Rs. 3 cr.,
whichever is earlier
Turnover limit- Non-delivery turnover of Rs. 2.7 cr., Delivery
turnover of Rs. 30 lac

Access fee- Rs. 2500

Validity- Time validity of 12 months or Turnover validity of Rs. 6
cr., whichever is earlier
Turnover limit- Non-delivery turnover of Rs. 5.4 cr., Delivery
turnover of Rs. 60 lac
Note: Unutilized delivery limit may be added to Non-delivery limit

Convenience
You have the flexibility to access Reliance Money services in
Multiple ways: through the Internet, Transaction Kiosks, Call &
Transact (phone) or seek assistance through our Business Partners

Security
Reliance Money provides secure access through an electronic
token that flashes a unique security number every 32 seconds
(and ensures that the number used for earlier transaction is
discarded). This number works as a third level password that
keeps your account extra safe

Single window for multiple products

Reliance Money, through its affiliates/partners, facilitates
transactions in Equity, Equity & Commodity Derivatives, Offshore
Investments, Mutual Funds, IPOs, Life Insurance and General
Insurance products
Note: All overseas investments are subject to rules, regulations
and guidelines of the Reserve Bank of India as laid down from
time to time

3 in 1 integrated access
Reliance Money offers integrated access to your banking, trading
and demat account. You can transact without the hassle of writing
cheques.

Demat account with Reliance Capital

Hassle free demat account with Reliance Capital. The Annual
Maintenance Charge for the Demat Account is just Rs. 50/- per
annum

Other Services
Through the portal www.reliancemoney.com, Reliance Money
provides:
• Reliable research, including views of external experts with an
enviable track record.
• live news from Reuters and Dow Jones
• CEOs'/experts' views on the economy and financial markets
 • The Personal finance section provides tools that help you
plan your investments, retirement, tax, etc
• Analyze your risk profile through the Risk Analyzer
• Get a suitable investment portfolio using the Asset Allocator

LEGAL AND REGULATORY ENVIRONMENT

SEBI - The capital markets regulators also regulates the mutual
funds in India. SEBI requires all mutual funds to be registered with
them. SEBI issues guidelines for all mutual funds operations -
investment, accounts, expenses etc.

RBI as supervisor of banks owned mutual funds - As banks in

India came under the regulatory jurisdiction of RBI, bank owned
funds to be under supervision of RBI and SEBI.

RBI as supervisor of Money Market Mutual Funds - RBI has

supervisory responsibility over all entities that operate in the
money markets. Hence in the past Money Market Mutual Funds
scheme of Mutual funds had to be abide by policies laid down by
RBI. Recently, it has been decided that Money Market
Mutual Funds of registered mutual funds will be regulated
by SEBI through SEBI (Mutual Fund) Regulations 1996.
 Ministry of Finance - (MoF) ultimately supervises both the
RBI & the SEBI and plays the role of apex authority for any major
disputes over SEBI guidelines.

Company Law Board - Dept of Company Affairs -

Registrar of companies
AMCs of Mutual funds are companies registered under the
companies Act
1956 and therefore answerable to regulatory authorities
empowered by the
Companies Act.

Stock Exchanges
Stock Exchanges are self-regulatory organizations supervised by
SEBI. Many of closed ended funds of AMCs are listed as stock
exchanges and are traded like shares

Office of the Public Trustee

Mutual funds being public trust are governed by the Indian Trust
Act 1882. The Board of trustees or the Trustee Company is
accountable to the office of the public trustee, which in turn
reports to the Charity commissioner
 Unit Trust of India
Unit Trust of India formed under UTI Act 1963.The Management of
the Trust is under a Board of trustees, which has names of RBI,
IDBI, LIC, and SBI with the chairman appointed by the
Government of India in consultation with the IDBI.
Self-Regulatory organizations
A Self Regulatory organization (SRO) is an association
representing a group of market participants, which is empowered
by the apex regulatory authority to exercise pre-defined authority
over regulation of their members. For example stock exchanges.
However everybody representing a group of market participants
does not automatically become a SRO.
Association of Mutual funds of India (AMFI)
AMFI is not a SRO. It has been formed in 1995 with the
objective of representing the Mutual fund industry collectively
with a view
- To promote the interests of Mutual Funds and Unit holders.
- To set ethical, commercial and professional standards in the
industry.
- To increase public awareness of Mutual funds in the country
 SHARE TRADING
Points To Consider Before Investing
It’s always risky to invest your money in one stock. The
confidence in a stock may be effective but the overconfidence can
be hazardous. The stocks and stock markets have very irregular
nature. It is very hard to analyze the future conviction of a stock.
The unpredictable things may occur, which may have shocking
effects on the investors.
The investors should always track few lucrative stocks before
investing. The investors are always advised to interpret the stocks
and stock market correctly, study the past as well as present
movements of the stocks, and adopt the flexible policies that may
deal with the changing market trends.
It is very difficult to predict the future of the stock market, but the
investors outline brief plan about how the market may perform in
the coming future on the basis of market trends. The stock
markets are highly volatile and erratic in nature. The investors
should follow the active market trends and manage their stocks in
such a way so that they must earn some gain.

If you are a day trader, you should make proper selection of the
stock and when the suitable time comes, sell it. Don’t wait for
further increase; otherwise you may lose your money. In case of
long-term investing, you should pick the stocks that have some
demand and when the price reaches to its highest peak, covering
your costs plus profits, then its better to sell it. You must take help
from an expert and follow proper instructions to make bigger
profits.

Stock Market Story

Stock exchange provides an opportunity to investors to invest
money in the securities of their choice. It is a structured securities
market that offers sufficient marketability and price stability for
shares so essential for the requirements of investors. It (stock
market) is considered as a symbol of the growth of an economy.

Stock market offers a balanced measure of security and integrity

in the sale and purchase of different securities. Through the
interchange of demand for the supply of securities, a well-
structured securities market helps in accurate valuation of stocks.
The stock exchange assists in the systematic flow of distribution
of savings as between various kinds of aggressive investments.

The stock exchange is considered as an organization of huge

significance in every country. Industrial development and
expansion hinge upon capital formation, that is, money being
invested in various securities. This becomes achievable on a large
scale due to subsistence of stock exchanges. Those who are
interested in investing their funds are usually fascinated towards
securities issued by various companies.
The prices of particular securities traded at the stock exchanges
reflect their relative demand and supply. The prices of securities
also indicate the financial health of individual companies. This
serves as a guide to the investors to invest in sound securities.

The security price index schedule provides a reasonable indication

of the state of the economy, industry and business. That’s why
the stock exchange is known as the ‘barometer of the economy.’
Just like, the barometer depicts the changes in atmospheric
pressure; stock market quotes give an idea about the economic
progress of a country.

Swing Stock Trading

Swing stock trading is a short-term trading technique in which
stocks are held only for shorter periods such as two to four days
or weeks. Normally, the newcomers adopt this style and it
depends on the weekly or monthly variations in stock prices.
Swing trading provides higher returns as compared to day trading.
However, swing traders have to suffer overnight risk, which could
have adverse affect on stock price. Swing traders suffer less
challenge from big traders.

During the upward trend, a swing trader observes a particular

stock for a couple of days. If there is a downfall in the market, the
trader shifts to another emerging stock. Swing trading is most
productive, when the markets are performing firmly.
A swing trader appraises the temporary impulsion and pricing
strategies of the stock, rather than its basic value. Swing stock
trading carries lesser risks. A swing stock trader takes advantage
from the expected steady market instabilities.

When there is substantial price variation in the market, the swing

trader sells the stock without waiting. Swing stock trading
provides quick results, but the important thing is to choose the
right market and the right stocks.
Swing trading ignores rapid increase or decrease in stock prices
and the prices tend to go in straight direction without fluctuating.
Swing trading is best for part-time traders, while day traders have
to watch each and every movement in quotes and they have to
stick to their computers for many hours. Swing trading doesn't
require that type of focus and dedication.
In brief a swing trader’s aim is to generate money by captivating
the immediate changes that stocks attain in their lifetime, and at
the same time manipulating their risk by following suitable money
management practices.

Day Trading
Numerous people have wrong perception that short term trading
strategy is chancy and long term trading strategy is secure. But
this is wrong, both short term trading and long term trading can
be effectual trading strategies.
Stock market is a place where investors can earn lots of money in
the short time as well as in the long run. The return on
investments mainly depends on the time durations for which the
investments are made. There are various types of trading styles
that investors may opt to make profits from the stock market. In
this article we talk about day trading.
Under day trading method, the stocks are held only for short
periods - for few hours or minutes or seconds. The day trading
offers various opportunities to make big profits daily. The trading
process for the day trading comprises exciting strategies, which
assist the investor to make good profits.
Day traders buy and sell stocks during the whole day, hoping that
the price of the stocks will rise and let them to make quick gains.
A day trader will sell all stocks before closing of stock market. The
purpose of day trading is to speedily get in and out of any stock
for a return anywhere from a few cents to several points per share
on an intra-day basis.
The day trading helps investors to control the fear of overnight
risk. If the investors have ideal plans to choose the investment
opportunities from the stock market, the day trading is the best
option idea to make quick money.

Online Stock Investing Benefits

Online stock investing is an emerging technique to trade stock but
when practiced by the average person can be a complete waste
of money and time. The average person needs to be acquainted
with the ups and downs of stock trading in order that they can
stop losing money when they buy and sell stock.
In reality, when you purchase stock, you are becoming a
shareholder in that company. The company will then take the
money you used up to obtain that share to amplify the company
and make more money. When the business makes more money
the stock price will grow up. You can then sell the stock to make
more money than you invested, or if the company loses money
from when you purchased the stock you suffer a loss.
If you are interested in entering the online stock-investing world,
you should go online and make an account thru an online
brokerage company. After setting up your online account, you can
begin to trade stock. It is also very important that you have some
knowledge about stock trading. Here are some benefits of online
stock investing:

 When trading stock online the broker's commissions are less.

The Brokerage charges are Rs. 12 per transaction and not

depending on the amount of money in the Reliance Money
 Online trading is advantageous as the company lets the

investor to chart the lucrative stocks and also updates the

investor with the most recent updates and news on the stock
market.
  One of the best parts about online stock trading stock is its
easiness to access your account, get detailed information
about the company and stock you invested in, etc.
 You have total freedom to buy and sell stock in your own way
and at your own time. Basically online investing is the best
way to invest money with complete freedom.
 If you want help while trading online you are capable of
making contact with other trained brokers and investment
counselors and ask questions to them.
 When you trade stock at your home, you save lots of money
and time.

Investing In the Stock Market

Online stock trading is a new technique of buying and selling

stocks, which has created a boom in the stock market industry. It
has made all people to have the benefit of stock trading by using
their own PC. Now you can buy and sell any stock over the
Internet and it doesn’t take much to begin. Thru online facility,
you can have a proper check over the market situation from any
corner of the world.

In today’s hasty and hard life, nobody has time to personally visit
the stock brokers or companies to collect information or to invest
in their schemes. So, the invention of internet has proved to be
the most excellent tool in the stock trading that has given rise to
trade stock online from the comfy atmosphere of your home or
office. Here are few points that you have to consider while getting
involved into it:

- You should make proper research for a well-known and

trustworthy company before putting your hands in stock market
as there are several Internet sites that deal in the buying and
selling business of stocks. You should get through the evaluations
and testimonials of different investors those who are already
dealing with them and you can also visit bulletin boards to grab
information about other companies.

- There are several Internet sites that are linked to the buying and
selling of stock to foreign markets while some are related to the
overseas as well as domestic markets. You should decide earlier
with which company you want to start trade so that you should
not mix up the things.
- You should always go for the sites that are completely secured
as your financial plus personal information has to be inserted over
the site to start the stock trading online. If the security of the site
is less than your level of satisfaction then need not to step in as
there might be the chances that your loaded data can be abused
in future.

- First investigate about the payment or other charges charged by

different sites. You should always choose the site charging less
fees per trade, thus, you should take the benefit of online trading
that cannot be enjoyed in trading stock in a traditional manner.
Online investment sites provide 24 x 7 hours assistance so that if
you need any help, they should always be present to support you.

Online Stock Trading Is Very Opportunistic

Stock market is a place where investors can make continuous
profits by investing their funds in different segments. Stock
trading has turned into big business, now-a-days. It offers several
choices to investors, which include breakeven (BE) systems,
online stock trading, futures trading and chances to make bigger
gains. Each stock investment is based on three vital constituents
i.e. capital, outlook and technique.
There are numerous investors that buy or sell shares on a
daily basis. The online facility has made stock trading an easier
and simpler process. The online stock trading (buying and selling
of stocks) thru Internet has attained much important all through
the world. Because of its advantages, it had attracted more and
more users.
Online stock trading lets investors to buy or sell shares
automatically. It is a resourceful and suitable method to scrutinize
the stock market and make investments in the lucrative sections.
But, it is vital that investors should have proper knowledge about
stock market basics, otherwise it will create problems in future.

The online stock trading has offered an opportunity to

investors to branch out their temporary plus permanent
investment plans, and to make investment in stock markets all
thru the world. The other benefit of online trading is that investors
need to pay less brokerage charges. It also helps investors to take
immediate action, without any delay. The number of online
companies also provides the services like stock trading, automatic
investment and even reinvestment of dividends with info to buy
or sell once the price reaches a higher level.
In order to make better returns on investments, investors can hire
a stock broker. Investors can also take help from a trading
professional or a trading institute that will offer advantageous
opportunities for their investment bag.

Points to Remember for a Newcomer in Stock Market

We all are interested in investing money in the stock market,
which provides opportunities to increase our wealth within short
periods. Stock exchanges encourage investments and provide a
permanent market for securities. Various types of securities are
traded there. Therefore it is an easy way for investors to utilize
their available cash instead of blocking.

If there is an upward trend in the stock market, then you can

easily reap gains in much lesser time, but if there is downfall, you
need to wait for some profitable time. Stock market fixes no limits
on investors; they can easily make their profits and raise their
profitability accordingly.
But, it is necessary that you must know the basic rules and
conditions of the stock market. The trading in a stock exchange is
done under strict rules and in a very orderly manner. Stock
market conditions assist you to earn higher gains with your
limited incomes. If you are a newcomer, then you have to gain
some knowledge about this opportunistic market. Stock market
carries higher degree of risk for all. Whether you are a day trader,
swing trader or long-term holder, you need to follow some rules.

Stock exchanges are well-organized markets that publish the

quote list of the securities traded on daily basis. The investor gets
the latest prices of their securities, which are prepared by the
experts. Stock exchange acts as a middleman between the seller
and buyer of securities. Therefore, it helps in mobilization of funds
for the companies.

Is trading through the Internet safe?

The safety of transactions on the Internet depends on the
encryption system used. The better this transaction system, the
more difficult it is for any person to hack the site.
Internationally, the best system available today is the 128-bit
encryption, a system, which evens the Pentagon uses.
ICICIdirect.com is one of the few online share-trading sites in the
country equipped with this 128-bit encryption.
Secondly, you too can ensure the safety of the transactions
online. You normally get a secured user id and password, the
secrecy of which is to be maintained entirely by you.

Thirdly, if the transaction system requires no manual intervention,

you further improve the safety in the transactions. Among Indian
sites, ICICIdirect.com is one of the very few fully integrated online
trading sites. This enables the elimination of the possibility of any
manual intervention. Which means orders are directly sent to the
exchange ensuring that you get the best and right price?

What about security of my money demat shares and my

transaction documents?

In systems where the broking, banking and demat accounts are

completely integrated, your money remains in your own bank
account, and does not get transferred to the broker's pool
account.

Is trading through the Internet a difficult and cumbersome

process?

The experience of trading through Internet depends a great deal

on the type of product offered by the site. Say, for example, one
of the issues bothering you may be tired of the paperwork
involved after every trade in writing cheques or TIFDs.
You would then seek a system that eliminates these processes. In
online trading sites, the greater the back-end integration of the
system, the greater the amount of work the sites do for you,
therefore greater the convenience available to you.For example,
incase of ICICIdirect.com, your broking account, bank account and
demat account are linked electronically. So when you punch in a
buy or sell order, the system checks the funds/ shares availability
and automatically credits/debits the accounts once the order is
executed by the exchange.

But I am not comfortable with Internet, or with finance,

how can online trading be easy for me?

Contrary to common perceptions, trading through Internet does

not require either any expertise in working on the computer, or
any special financial skills.

You could try the demo (demonstration) of the online trading sites
like ICICIdirect.com to find out why others like you, with little or no
knowledge about the Internet or finance, have switched on to
online trading. Or you could attend the demonstrations sessions
held by such websites in your city.

How frequently is the price updated at all these online

trading sites?

The tickers available at online trading sites provide instantaneous

updates. Also, some websites can offer to transact in those shares
instantaneously and with convenience.
How can I be sure that I shall be trading at a price I want
to or at a price appearing in the website?

The solution to your problem could be provided in different ways

by different online share trading sites. At Reliance Money, for any
trade order, the customer is asked to click "Proceed" after he has
the opportunity to completely check the order verification form.
Moreover, you have the option of modifying or canceling the order
till the moment the order is executed at the exchange.
Finally, online trade confirmations reach reaches our customers
within 4 minutes, while contract notes are dispatched at the end
of the day and reach within 12-24 hours.
With Reliance Money, you decide what you want to buy and buy
the share at the price you want to and therefore you are in total
control of your trades.

MUTUAL FUND

About Mutual Fund

What is it about investing that irks you most? Is it the fact that it
is time-consuming since it involves researching the market for
investment products and then proceeding with the paperwork
involved? Or could it be that once you have made your
investments, you cannot find the time to monitor them? Like most
of us, do you dread a situation wherein you need your money all
of a sudden and have no access to it or have to run from pillar to
post to get it back? Do you sometimes hesitate to invest because
you are unsure about how well-regulated investment products
are? Is your approach to investing constrained by the fact that
you possess limited investment capital, which does not allow you
to achieve the diversity that you desire?

If these are some of the reasons that make you feel disinclined to
undertake an investment exercise, consider mutual funds. This
investment vehicle successfully addresses the above concerns
and offers other benefits too. Let’s take a look at what exactly a
mutual fund is and how it functions.

A mutual fund is an entity, which offers a number of investment

schemes with different investment objectives. An investor
interested in investing in these schemes needs to assess which
scheme has an investment objective that matches his, to make
his selection from among the available schemes.

Mutual funds are well-structured and closely-regulated entities,

which hire investment professionals to invest and manage
investors’ funds.
Mutual funds are well-structured and closely-regulated entities,
which hire investment professionals to invest and manage
investors’ funds.
Mutual funds issue units to each investor based on the amount
invested. Units of mutual funds are similar to shares issued by
companies. For instance, if an investor invests Rs 5,000 in a new
scheme of a mutual fund, which is offering units at Rs 10 per unit,
he will receive 500 units in the scheme (Rs 5,000 / Rs 10).

The mutual fund invests the money collected from unit-holders on

their behalf. Income earned on these investments is distributed by
the mutual fund among its investors in proportion to their holding
in the scheme. For instance, taking the above example forward, if
the scheme issues a total of 1 lakh units and earns a total income
of Rs 1 lakh in a particular period, it would have earned Re 1 per
unit issued (Rs 1 lakh / 1 lakh units). The investor, who had
applied for 500 units, will be entitled to receive Rs 500 (income
earned per unit – Re 1 x 500 units).

Concept of Mutual Fund

A Mutual Fund is a trust that pools the savings of a number of

investors who share a common financial goal. The money thus
collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned
through these investments and the capital appreciation realised
are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to
invest in a diversified, professionally managed basket of securities
at a relatively low cost. The flow chart below describes broadly
the working of a mutual fund:

Mutual Fund Operation Flow Chart

Organization of a Mutual Fund

Here are many entities involved and the diagram below illustrates
the organizational set up of a mutual fund:

Organisation of a Mutal Fund

Types of Mutual Fund Schemes

Wide varieties of Mutual Fund Schemes exist 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.

Mutual Fund Types

Once we have reviewed the fund classes, we are ready to discuss

more specific fund types. Funds are generally distinguished from
each other by their investment objectives and types of securities
they invest in.

A. Broad Fund Types by Nature of Investments

Mutual funds may invest in equities, bonds or other fixed income
securities, or short term money market securities. So we have
Equity, Bonds and Money Market Funds. All of them invest in
financial assets. But there are funds that invest in physical assets.
For example, we may have Gold or other Precious Metal Funds,
or Real Estate Funds.

B. Broad Fund Types by Investment Objective

Investors and hence the mutual funds pursue different objectives
while investing. Thus, Growth Funds invest for medium to long
term capital appreciation. Income Funds invest to generate
regular income, and less for capital appreciation. Value Funds
invest in equities that are considered under-valued today, whose
value will be unlocked in the future.

C. Broad Fund Types by Risk Profile

The nature of a fund’s portfolio and its investment objective imply
different levels of risk undertaken. Funds are therefore often
grouped in order of risk. Thus, Equity Funds have a greater risk of
capital loss than a Debt Fund that seeks to protect the capital
while looking for income. Money Market Funds are exposed to less
risk than even the
Bond Funds, since they invest in short-term fixed income
securities, as compared to longer-term portfolios of Bond Funds.

Money Market Funds: Lowest rung in the order of risk level,

Money Market
Funds invest in securities of a short-term nature, which generally
means securities of less than one-year maturity.
 Gilt Funds: Gilts are government securities with medium to
long-term maturities, typically of over one year (under one-year
instruments being money market securities).

Debt Funds (or Income Funds): Next in the order of risk

level, we have the general category Debt Funds. Debt funds
invest in debt instruments issued not only by governments, but
also by private companies, banks and financial institutions and
other entities such as infrastructure companies/utilities.

Diversifies Debt Funds

A debt fund that invests in all available types of debt securities,
issued by entities across all industries and sectors is a properly
diversified debt fund. A diversified debt fund is less risky than a
narrow-focus fund that invests in debt securities of a particular
sector or industry.

Focused Debt Funds

Some debt funds have a narrow focus, with less diversification in
its investment. Examples include sector, specialized and
offshore debt funds. Other examples of focused funds include
those that invest only in Corporate Debentures and Bonds or
only in Tax Free Infrastructure or Municipal Bonds.

High yield Debt Funds

There are funds which seek to obtain higher interest rates by
investing in debt instruments that are considered “below
investment grade”. e.g. Junk Bond Funds.

Assured Return Funds – an Indian Variant

The SEBI permits only those funds whose sponsors have adequate
net-worth to offer assurance of return. For e.g. MIPs. Investors
have some lock-in period.

Fixed Term Plan Series – Another Indian Variant

These are essentially closed-end. These plans do not generally
offer guaranteed returns. This scheme is for short-term investors
who otherwise place money as fixed term bank deposits or inter
corporate bonds.

Equity Fund: As investors move from Debt Fund category to

Equity Funds, they face increased risk level.
No guarantee returns
High potential for growth of capital

Types of Equity Fund

a) Aggressive Growth Fund
Maximum capital appreciation
Invests in less researched or speculative shares.
Very volatile & riskier.

b) Growth Fund
Growth fund invest in companies whose earnings are expected
to
rise above average rate. e.g. Technology Fund
Capital appreciation in 3 – 5 years
Less volatile then aggressive growth fund.

c) Specialty Fund
They invest in companies that meet predefined criteria.
i) Sector Funds
Technology Fund
Pharmaceutical Fund
FMCG Fund
ii) Offshore Funds
Invest in equities in one or more foreign countries.
iii) Small-Cap equity Funds
Invest in shares of companies with relative lower market
capital.

d) Diversified Equity Funds

A fund that seeks to invest only in equities, except for a very
small portion in liquid money market securities, bur is not focused
on any one or few sectors or shares, may be termed a diversified
equity fund. While exposed to all equity price risks, diversified
equity funds seek to reduce the sector or stock specific risks
through diversification.
i) Equity Linked Savings Schemes: An Indian Variant Investment in
these schemes entitles the investor to claim an income tax
rebate, but usually has a lock-in period before the end of which
funds cannot be withdrawn.

e) Equity Index Funds

An index fund tracks the performance of a specific stock market
index.
The objective is to match the performance of the stock market by
tracking an index that represents the overall market.
The funds invest in share that constitute the index and in the
same proportion on the index.

f) Value Funds
Value Funds try to seek out fundamentally sound companies
whose shares are currently under-prices in the market. Value
Funds will add only those shares to their portfolios that are selling
at low price earnings ratios, low market to book value ratios and
are undervalued by other yardsticks.
 Fund concentrate on future growth prospect having good
potential.
g) Equity Income Funds
There are equity funds that can be designed to give the investor a
high level of current income along with some steady capital
appreciation, investing mainly in shares of companies with high
dividend yields.

Hybrid Funds – Quasi Equity/Quasi Debt: Many mutual

funds mix these (money market, debt and equity) different types
of securities in their portfolios. Such funds are termed “hybrid
funds” as they have a dual equity/bond focus.

Commodity Funds: While all of the debt/equity/money market

funds invest in financial assets, the mutual fund vehicle is suited
for investment in any other- for examples- physical assets.

Real Estate Funds: Specialized Real Estate Funds would invest

in Real Estate directly, or may fund real estate developers, or lend
to them, or buy shares of housing finance companies or may even
buy their securities assets.

Funds in accordance of their risk level

• Money Market Mutual Fund

• Municipal bond fund
 • Corporate bond funds
• Mortgage funds 1
• Govt. bond funds
• Index funds
• Income funds
• Balanced funds
• Growth & Income funds
• International funds
• Precious metal funds
• Growth funds
• Aggressive funds.

Advantages of Mutual Fund

• Professional Management
• Diversification
• Convenient Administration
• Return Potential
• Low Costs
• Liquidity
• Transparency
• Flexibility
 • Choice of schemes
• Tax benefits
• Well regulated

How You Can Invest in a Mutual Fund?

There are two ways in which you can invest in a mutual

fund.

1. One-Time Outright Payment

If you invest directly in the fund, you just hand over the cheques
and you get your fund units depending on the value of the units
on that particular day.

Let’s say you want to invest Rs 10,000. All you have to do is

approach the fund and buy units worth Rs 10,000. There will be
two factors determining how many units you get.

Entry load

This is the fee you pay on the amount you invest. Let’s say the
entry load is 2.25%. Two percent on Rs 10,000* would Rs 225.
Now, you have just Rs 9,775 to invest.

NAV
The Net Asset Value is the price of a unit of a fund. Let’s say that
the NAV on the day you invest is Rs 30. So you will get 326.67
units (Rs 9800 / 30).

2. Periodic Investments

This is referred to as a SIP (Systematic Investment Plan).

That means that, every month, you commit to investing, say, Rs

1,000 in your fund. At the end of a year, you would have invested
Rs 12,000 in your fund.

Let’s say the NAV on the day you invest in the first month is Rs
20; you will get 50 units.
The next month, the NAV is Rs 25. You will get 40 units.

The following month, the NAV is Rs 18. You will get 55.56 units.
So, after three months, you would have 145.56 units. On an
average, you would have paid around Rs 21 per unit. This is
because, when the NAV is high, you get fewer units per Rs 1,000.
When the NAV falls, you get more units per Rs 1,000.
1. Is there a load?

An exit load is a fee you pay the fund when you sell the units, just
like the entry load is a fee you pay when you buy the units.

Initially, funds never charged an entry load on SIPs. Now,

however, a number of them do.
You will also have the check if there is an exit load. Generally,
though, there is none. Also, if there is an entry load, an exit load
will not be charged.

An exit load may be charged if you stop the SIP mid-way. Let’s say
you have a one-year SIP but discontinue after five months, then
an exit load will be levied. These conditions will wary between
mutual funds.

2. What is the Minimum Investment?

If you do a one time investment, the minimum amount that you

have to invest is Rs 5,000.

If you invest via an SIP, the amount drops. Each fund has its own
minimum amount. Some may keep it at least Rs 500 per month;
others may keep it as Rs 1,000. [Only in Reliance mutual funds,
you can invest as little as Rs. 100/- per month.]

3. How often does one have to invest?

It would depend on the fund.

Some insist the SIP must be done every month. Others give you
the option of investing once in three months or once in six
months.

They also give fixed dates. So you will get the option of various
dates and you will have to choose one. Let’s say you are
presented with these dates: 1, 10, 20 or 30. You can pick any one
date.

If you pick the 10th of the month, then on that day, the amount
you have decided to invest in the fund has to be credited to your
mutual fund.

4. How must the payment be made?

You can opt for the Electronic Clearance Service from your bank;
this means the mutual fund will, as per your instructions, debit a
certain amount from your account every month.

Let’s say you have a SIP of Rs 1,000 every month and you have
chosen to invest in it on the 10th of every month. Under this
option, you can instruct your mutual fund to directly debit your
bank account of Rs 1,000 on the due date.

If you don’t have the required money in your account, then for
that month, no units will be allocated to you. But, if this continues
periodically, the mutual fund will discontinue the SIP. You need to
check with each mutual fund what their parameters are.

Alternately, you can give cheques to your mutual fund. In this

case, they may ask for five Post Dated Cheques upfront with your
first investment.
Since these cheques are dated ahead of time, they cannot be
processed till the date indicated.

5. Must I state for how long I want the SIP?

Yes. You will have to state whether you want it for a year or two
years, etc. If, during the course of this period, you realize you
cannot continue with the SIP, all you have to do is inform the fund
15 days prior to the payout.

The SIP will be discontinued. You can continue to keep your money
with the fund and withdraw it when you want.

6. Do all funds offer SIP?

No. Liquid funds, cash funds and floating rate debt funds do not
offer an SIP. These are funds that invest in very short-term fixed-
return investments. Floating rate debt funds invest in fixed return
investments where the interest rate moves in tandem with
interest rates in the economy (just like a floating rate home loan).

All types of equity funds (funds that invest in the shares of

companies), debt funds (funds that invest in fixed-return
investments) and balanced funds (funds that invest in both) offer
a SIP.

7. Tax implications

Let’s say you have invested in the SIP option of a diversified

equity fund.
If you sell the units after a year of buying, you pay no capital
gains tax. If you sell if before a year, you pay capital gains tax of
15%.

Let’s say you invest through a SIP for 12 months: January to

December 2007. Now, in March 2008, you want to sell some units.

Will you be charged capital gains tax?

The system of first-in, first-out applies here. So, the amount you
invest in January 2007 and the units you bought with that money
will be regarded as the units you sell in March 2008.

For tax purposes, the units that you sell first will be considered as
the first units bought.

8. How will an SIP help?

When you buy the units of a fund, you may do so when the NAV is
really high. For instance, let’s say you bought the units of a fund
when the Bull Run was at its peak, leading to a high NAV.
If the market dips after that, the value of your investments falls
and you may have to wait for a long while to make a return on
your investment. But, if you invest via a SIP, you do not commit
the error of buying units when the market is at its peak. Since you
are buying small amounts continuously, your investment will
average out over a period of time.
You will end up buying some units at a high cost and some units a
lower price. Over time, your chances of making a profit are much
higher when compared to an one-time investment.

RESEARCH METHODOLOGY
Exploratory design
Exploratory research is usually conducted during the initial stage
of the research process. It is conducted to clarify and define the
nature of a problem. In our research we would collect information
from individuals, talk to experts in this field and also refer to
secondary data.
Secondary data analysis
Secondary Research is done in the initial stage of the project and
before the survey. The main objective of secondary research is to
find out the matter which is related to our project. It can be done
with the help of search on internet and by doing literature study.
But here is done with the help of internet as well as by studying
material which is provided by the company.
Experience Survey
It is done to get the various opinions by the individual experience
person. This is done to give more information about the research
topic and in which direction it should be. The person to whom I
met has a experience of more than 15 years in the share trading
and mutual fund. He provided us more information as I asked to
him. The information is collected from 3-4 people in the field of
security market.

Primary data

The primary data is collected by conducting a survey. The survey

is a technique by which the individual vies be gathered with the
help of the questionnaire. The questionnaire is prepared in such a
manner so that it is filled by those respondents who invest their
money in the security market. This questionnaire contained the
all close ended questions so that the data is easy to analysis as
well as it is suitable for the respondents. The questionnaire is
related to the facility provided by the Reliance Money. The
questionnaire is also prepared for those people who don’t invest
their money in the stock market. This survey is done to analysis
the perception of respondent towards share trading and mutual
fund to Reliance Money.

Sampling Design
Target Population
The target population is a proper source from which the data are
to be collected can be identified. The target population for this
project is the population of Lucknow whose age is more than 18
years and should be educated.
Sampling Frame
This is the list of persons from which a sample is drawn; it is also
called the working population for the project. These are those
persons who have their DMAT A/C and invest their money in the
stock market or mutual fund.
Sampling Method
Here nonprobability sampling method is used; it is a sampling
technique in which units of the sample are selected on the basis
of personal judgment or convenience. Quota Sampling is a
suitable to analysis the data on the bases of the family expenses
which is mentioned in the demography of the questionnaire. The
purpose of quota sampling is to ensure that the various subgroups
in a population are represented on pertinent sample
characteristics to the exact extent that the investigators desire.
Survey technique
The survey technique is based on the questionnaire. The
questionnaire is prepared after knew the different views by
customers. The data is also collected on the net as well as various
magazines are concerned to make the project in a better way. The
questionnaire contained all types of questions related to share
trading and mutual fund. The questionnaire is filled up by those
customers who invest their money in share trading and Mutual
fund. The data is analyzed using ms-excel and spss tools.
Research Tools
The tools which is used to analysis the data are ms-excel and ms-
word. The table and graphs are prepared by using the ms-excel.

Objective of research;

• The main objective of this project is concerned with getting

the opinion of people regarding demat account, Mutual
Funds, and other financial products, to target them and
create awareness while with the generation of leads.

• I have tried to explore the general opinion about the

products and services provided by Reliance Money. It also
covers why/ why not investors are availing the services of
financial advisors.
 • Along with it a brief introduction to India’s largest financial
intermediary,
RELIANCE MONEY has been given and it is shown that what
are demat a/c, mutual funds and life insurance and how they
work.

Scope of the study:

The research was carried out in Cuttack city only. I have visited
people randomly nearby my locality, different shopping malls,
small retailers etc.
Data sources:
Research is totally based on primary data. Secondary data can be
used only for the
reference. Research has been done by primary data collection,
and primary data has been collected by interacting with various
people. The secondary data has been collected through various
journals and websites and some special publications of R-MONEY.

Sampling:
S
 ampling procedure:
The sample is selected in a random way, irrespective of them
being investor or not or availing the services or not. It was
collected through mails and personal visits to the known persons,
by formal and informal talks and through filling up the
questionnaire prepared.
S
 ample size:
The sample size of my project is limited to 100 only.
S
 ample design:
Data has been presented with the help of pie charts.
.

RESULTS OF THE STUDY

1. Preference of Investment

Fig.1 Result of Preference of Investment

This shows that although the mutual funds market is on the rise
yet, the most favored investment continues to be in the Share
Market. So, with a more transparent system, investment in the
Stock Market can definitely be increased.

2. Awareness on Online Share Trading

Fig. 2 Result of Awareness of Online Share Trading

With the increase in cyber education, the awareness towards
online share trading has increased by leaps and bounds. This
awareness is expected to increase further with the increase in
Internet education.

3. Preference of investing in stock market

The study shows that most of the people prefer to invest in stock
market because of high risk and high return whereas some other
try to capture the short term gain from investment. But a very few
section of people invest because of the benefits they gain in tax.

4. Awareness of Reliance Money as a Brand

Fig.3 Result of Awareness of Reliance

money as a Brand
This pie-chart shows that reliance money has a reasonable
amount of Brand awareness in terms of a premier Retail stock
broking company. This brand image should be further leveraged
by the company to increase its market share over its competitors.
5. Awareness of Reliance Money Facilities

Fig .4 Result of Awareness of Reliance

money Facilities

Although there is sufficiently high brand equity among the target

audience yet, it is to be noted that the customers are not aware of
the facilities provided by the company meaning thereby, that, the
company should concentrate more towards promotional tools and
increase its focus on product awareness rather than brand
awareness.

5. Customers having Demat account in companies

 9%
33% Reliance
23% India bulls
Kotak Mahindra
ICICI Direct
14% others
21%

7. Satisfaction Level among Customers with current

broker

Fig 5 Result of satisfaction level among customers with current broker

This pie-chart corroborate the fact that Strategic marketing,

today, has gone beyond only meeting Sales targets and
generating profit volumes. It shows that all the competitors are
striving hard not only to woo the customers but also to make
them Brand loyal by generating customer satisfaction.
 8. Frequency of Trading

Fig 6 Result of Frequency of Trading

Inspite of the huge returns that the share market promises, we

see that there is still a dearth of active traders and investors. This
is because of the non – transparent structure of the Indian share
market and the skepticism of the target audience that is
generated by the volatility of the stock market. It requires efficient
bureaucratic intervention on the part of the Government.

9. Percentage of earnings invested in Share Trading

 Fig 7 Result of percentage of earning invested in share
trading

This shows that people invest only upto 10% of their earnings in
the stock market, again reiterating the volatile and non-
transparent structure of the Indian stock market. Hence, effective
and efficient steps should be undertaken to woo the customers to
invest more in the lucrative stock market.
10. Rating of share trading companies

60
50 50
40 40 40 40 40
30
20 20
10 10
0
Reliance ICICI dirct kotak mahindra others
lower 10 20 30 50
Medium 40 40 30 40
High 50 40 40 10
lower Medium High
11. Problems faced during trading

Network Problem
20% 20%
Information Related
Problem
10% Manual operating
problem

50% Service provide

problem

The most common problem faced by people during trading is the

information related problem i.e., they don’t get the required
information about trading either online or offline. Whereas some
other problems are also there like network problem, in manual
operating problem and service provider problem.
12. Describe yourself as a

18% Risks taker

44% Variety seeker
Price conscious
26%
12% Quality conscious

From the above graph I found that most of customers are mostly
risk taker and price conscious and least number of customers is
quality conscious and variety seeker. It suggests that the
customers are ready to invest money in equity and commodity
market which is more risky than mutual fund.
13. Rating of products of Reliance Money

About 20% of the people rated the products of reliance money as

excellent whereas 50% rated it as good. While some others rated
it as average and a very small portion of people rated it as poor.
 14. Customer awareness for the different brokerage

company

somewh not less

Company more at more awar
aware aware aware e
ICICI direct 25 35 20 20
Reliance
Money 38 30 12 20
Karvey 45 15 25 15
Sharekhan 30 20 34 16

Awareness Chart

50
40 more aware
Number

30 somewhat aware
20 not more aware
10 less aware
0
icici direct Reliance Karvey Sharekhan
Money
Company

The awareness about various companies is tabulated above. It is

shown in the bar chart that the maximum customers are aware of
karvey Brokerage Company. The awareness towards ICICI Direct
and Sharekhan is nearly same. About 48% customers are aware
about the Reliance money. Only 20% customer said that we don’t
know the exactly the services provided by the Reliance Money.

15. How Customer do Share Trading

Yourself 21
brokerage Company 65
Friend 4
Any experience person 10

You doshare trading through

10%
21% Yourself
4%
brokerage
Company
Friend

Any experience
65% person

The above pie chart shows that the nearly 65% customer do
trading through the brokerage company. Only 21% customers are
those who do share trading through their self. So it is beneficial for
the brokerage company that customer believe on the brokerage
company and don’t want to play with risk their self.
 16.Preference toward Mutual Funds

SA A N D SD
To minimize the risk 89 9 2 0 0
Influenced by past
performance 56 29 9 6 0
Broker motivation 35 20 25 16 4
For assurance &
security 81 12 4 3 0

100
90
80 SA
70
60 A
50 N
40 D
30
20 SD
10
0
To minimize the Influenced by Broker For assurance &
risk past motivation security
performance

People invest their money in the mutual fund. It is shown in the

bar chart that persons invest their money in mutual fund only to
minimize the risk. Because investing money in mutual fund has a
less risk. Therefore 90% customer said that they prefer to invest
money in mutual fund. People get more assurance and security by
investing their money in mutual fund. Mostly people influenced by
their past performance and people are not more motivated by
broker when they invest in mutual fund.

17.In which type of mutual fund people invest their

money

Growth Fund 56
Tax Saving Fund 26
Balanced Fund 10
Equity Fund 8
Any other 0
 In which type of mutual fund customer invest
mostly

8% 0%
10% Growth Fund
Tax Saving Fund
Balanced Fund
56% Equity Fund
26%
Any other

It is shown in the above pie chart that nearly 56% people invest
money in growth funds. After this people like to invest their
money in Tax saving fund. People invest money in balanced fund
and equity fund nearly 10% and 8% respectively. There is more
chance to get less in growth fund but there is more security of
money.

18.How much return customer think by investing money

in share trading

Return Number of customer

10% 0
11-20% 6
 21-30% 26
31-40% 23
41-50% 33
above 50% 12

Number of customer

12% 0%6%
10%
26% 11-20%
21-30%

33% 31-40%
41-50%
above 50%
23%

People invest money in shares to get more in lesser time than

invest in fixed deposit and insurance. Now people becoming more
aware about the market structure and sell their shares when they
are in position to get 20-40% return. It is a very risky game and
also very beneficial for the customer. Only those people invest
their money in shares whose income is nearly Rs. 20000-30000
per month.

19.What people see before investing in share market?

Company Image 19

Company Performance 58
motivated by experience person 10

market cap of company 13

about investing company

70
Company Image
60
50 Company Performance
40
30 motivated by experience
20 person
market cap of company
10
0
1

Every person thinks about the company in which he is going to

invest. He get the information form magazines, Newspapers and
also through internet. About 58% people said that they see the
current and last performance of the company before investing the
money in share market. 19%people see the company image
before investing the money in the share market. Nearly 10%
people see the market cap and motivated by any experience
person before investing money.

7. Services quality provided by the various company

Company Better Less Better Less Poor Poor
Name Service Service Service Servic
 e
ICICI
direct 64 23 5 9
Reliance
Money 34 46 4 16

Karvey 58 19 13 10
Sharekha
n 49 18 27 6

Service Quality Respopnse

70
60
Better Service
50
40 Less Better Service
30 Less Poor Service
20
Poor Service
10
0
ICICI direct Reliance Karvey Sharekhan
Money
Company

For ICICI Direct, 64% said that it provides the better service and
only 9% said that it provides the poor service. About Reliance
Money, 34% said that it provides the better service, 46% said that
it provide less good service and nearly 17% said that it provides
the poor service. Therefore there is need to improve the service
quality of reliance money. About Karvey, 59% said that it provides
the good service and only 10% said that it provides the poor
service but the market share of karvey is less. About Sharekhan,
49% said that it provide the better service and 8% said that it
provide the poor service. It means that to give more assurance
about the service of Reliance Money there is a necessary to
provide better service to attract more customers.

8. When people start thinking over market

No. of
Condition
Customer

After loosing the money 59

Before loosing the money 5

on the basis of increasing
trend 14
Impact of any globalization
factor 22

When people start thinking over market

After loosing the money

22%
Before loosing the
money
on the basis of
14% 59%
increeasing trend
5%
Impact of any
globalisation factor

It is shown in the above pie chart that 59% customer start

thinking over market after loosing the money. If they think before
losing the money in the market and invest money in a proper way
then it can be very beneficial for them. Only 22% customers think
when they invest money and get more return from the market.
The above table shows that only 14% are those who start thinking
when there is an upward or downward trend in the stock market.

9. Factors on which people blame during loosing condition

Knowledge level 24

own decision 13

market 47

company 16

Factors at which customer blame during loosing

condition

16%
24%
Knowlwdge level
own decision
market
13%
company
47%

It is shown in the above table and in the pie chart that market is
biggest factor when customers loose their money in share market.
Only 24% and 16% are those customers who think that their
knowledge level and company is the factors during loosing
condition. It means that most of people should have the proper
knowledge of market structure.
10. Which is the better option to invest the money?

No. of
Better option
Customer

Mutual Fund 19

Fixed Deposit 37

Insurance 14

Share Trading 30

Which one is the better option to invest

19%
30%
Mutual Fund
Fixed Deposit
Insurance
Share Trading
14% 37%

The above chart shows that fixed deposit is the better is a good
option to invest the money. It is a safest mode of investment and
no chances of loosing the money. Therefore 37% people said that
fixed deposit is a better option. Only 30% people said that share
trading is a good option because in this people have more risk but
can be get a more return. Mutual fund and Insurance are also not
a bad option to invest the money but it take some time to convert
in large money.

11. Comparison of Reliance money against other

brokerage company
SA A N D SD
Provide better return to the 67 21 2 0 0
customer
Brokerage charges are very 88 11 1 0 0
less
Transparency of money to the 65 24 7 4 0
customer is high
Security of money is high 57 19 16 6 2
Easy to access online trading 37 29 7 18 9
No charges if you do share 79 17 3 1 0
trading yourself
Charge coupon strategy is 49 38 3 8 2
good
Provide full satisfaction to the 41 18 14 23 4
customer
Provide the information in 62 12 3 9 14
easy and better way
More careful for his customer 19 48 6 18 9
 100
90
80 SA
70
60 A
50 N
40 D
30
20 SD
10
0
Provide better Brokerage Transparency of Security of Easy to access
return to the charges are very money to the money is high online trading
customer less customer is high

Reliance money provides the good return to the customer as it is

shown in the above bar chart. More than 60% customers are
strongly agreed with this comment. 20% are those people who are
agree with this comment. It is clearly shown in the above chart
that reliance money is a cheapest brokerage company in present
scenario. People opt that there is more transparency of money for
the customer. More than 60% customers think that it properly
manages the money of customers. The security of customer is
also very high in the reliance money because there are no
intermediaries between the Reliance money. The software
provided by the Reliance money is easy to access in comparison
to others as well as have high speed.
 90
80
70 SA
60 A
50
N
40
30 D
20 SD
10
0
No charges if Charge coupon Provide full Provide the More careful for
you do share strategy is good satisfaction to information in his customer
trading yourself the customer easy and better
way

It is shown in the above chart that it will not cut any charges if
customers do share trading himself. The charge coupon strategy
of reliance money is a very good and people are attracting
towards this company due to these facility. There is some problem
in the satisfaction level to the customer of reliance money. More
than 20% customer said that it doesn’t care their customer after
opening their DMAT A/C. Most of customers are satisfied with the
information provided by the reliance money.
12. According to occupation
Occupation No. of Customer
Student 9
Public Employee 19
Private Employee 37
Housewife 0
Businessman 35
 No. of customer acc. to their occupation

9%

Student
35% 19%
Public Employee
Private Employee
Housewife
0% Businessman

37%

Private employees are the maximum number of customer who

invests the money in share trading and mutual fund. These
employee have the better salary and more educated and aware of
the concept of share trading and mutual fund. After that 35% are
the businessman who invests the money in stock market. Only
19% are public employees because their salary is less and they
don’t take risk to invest money in share market and mutual fund.
Only few students invest money because parents are not allowed
them to invest money. But student are becoming more aware
about the concept of share trading and they know work to do on
internet.

13. According to the Family expenses

No. of
Family Expenses
Customer
upto 5000 14
5001-10,000 37
 10,001-20,000 34
20,001-30,000 11
30,001 and above 4

No. of Customer acc. to their family expenses

11% 4% 14%
upto 5000
5001-10,000
10,001-20,000
20,001-30,000
34% 37%
30,001 and above

Those people whose family expenses are more than 30,000 per
month invest more money in the stock market and mutual fund.
Therefore investment is depending on the family income. Share
Trading is all about the risk of money. Sometime person loose
money and some time gain depending upon the market
conditions.
 RECOMMENDATIONS
The company is new one and subsidiaries of Reliance Capital and
separated from it in the last year. The company penetrates its
market share in a very fast way. The franchisees of Reliance
money is increasing day by day in big cities where people are
have ability to invest their money in stock market. But there is a
need to concentrate on few places where it can come out from
weak points. In India most of people have lot of money but they
are not aware of these concept. Therefore there is need to spread
the awareness among people through a proper channel. The
following factors can help to improve the market share of reliance
money.
1. The major factor on which company should concentrate is a

proper service provided to the customer. The customer is the

king for the company. It is the customer by which the
company is progressing.
2. It is providing their ad on TV in proper way but there is a
need to improve the ad in print media like Hindi newspaper
and some more magazines which is penetrating in the rural
area.
 3. The company should have the customer data in a proper way
and should communicate their customer weekly or
fortnightly.
4. The company should take the written feedback about the
services provided by the Reliance money franchisees.
5. It should provide the training to the maximum number of
management student so that the awareness about the
reliance Money products and brand image spread in a fast
and in a right way.

CONCLUSIONS
It is concluded that Reliance money is improving their
infrastructure and market share in a fast way. The above analysis
shows that it is giving competitive to the other brokerage
companies. Its brand image is increasing day by day in the mind
of common man. The maintenance charges of the Reliance
Money are far –far less than the other companies. People are more
ready to give initial cost Rs. 500 for employee person and Rs, 750
for the businessman. After that there is not so much charges for
the share trading. It is only company which shows the higher
growth when market goes down. The service provided to the
customer is averaged. This is the only factor where there is a
need of improvement of proper service. People know the company
but they are less aware of the services provided by the company.

BIBLIOGRAPHY

Books

1. Business research Methods by William G,

Zikmund
2. Marketing Management by Philip Kotler
3. Investments by Bodie, Kane &
Marcus
Magazines
1. Business Today
2. Business World

Newspaper

1. The Economic Times

2. Times of India
3. Business Standard

WEBLIOGRAPHY

1. www.reliancemoney.com

2. www.demataccount.com
3. www.traderji.com

4. www.sharemarketbasics.com

5. www.sharekhan.com

QUESTIONNAIRE
I, the student of Jaipuria Institute of Management, Lucknow conducting a
survey on the topic Share Trading and Mutual Fund “A Customer
Perspective” Basis Reliance Money to analysis the customer trend in the
security market. Thank you very much for your kind responses.

1. Do you invest your money in share trading and mutual fund?

(a)Yes (b) No
If Yes

2. According to your awareness rank (1 to 4) the following

brokerage company.
1- More aware, 4- Less aware

Compan ICICI direct Reliance Karvy Share

y Money khan
Rank

3. You get the information about share market and mutual fund
through –

(a) Magazine (b) TV (c) Internet (d) Friend and relative

(e) other specify

4. You do share trading through-

(a) Yourself (b) brokerage company (c) Friend (d) any experience
person

6. You prefer invest your money in mutual funds- Tick () your
agreement
Where SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree and SD-Strongly
Disagree
SA A N D SD
To minimize the risk
Influenced by past
performance
Broker motivation
For assurance & security

6. In which type of mutual fund do you invest?

(a) Growth fund (b) Tax saving fund (c) balanced Fund d) Equity
fund (e) Any other specifies

7. Who influenced your decision to invest in Mutual Fund?

(a) Broker (b) Friends and Family (c) Advertisement (d)

others

8. What brokerage charges are you currently paying?

(a) 0.00-0.05 (b) 0.06-0.25 (c) 0.26-0.50 (d) 0.51-0.75 (e)

0.76 and above

9. Which of the following company do you know which provide the

share trading facility? Please ()

Company ICICI direct Reliance Money Karvy Sharekhan

Tick()
10. How much return do you think to get from share trading?

(a) 10% (b) 11-20% (c) 21-30% (d) 31-40% (e) 41-50%
(f) Above 50
11. What do you see before investing in share market?

(a) Company image (b) company performance (c) motivation by

experience person (d) market cap of company

12. According to you which one provides better service (Rank the
following 1 to 4 where

1- Better service, 4- Poor Service

Company ICICI direct Reliance Money Karvy Share khan

Rank

13. When do you start thinking over market, what is going to

happen in near future?

(a) After loosing the money (b) before loosing the money (c) on
the basis of increasing trend (d) globalization factor

14. How much time do you give daily to analyze the market?

(a) Up to 1 hour (b) 2 hour (c) 3 hour (d) 4 hour (e) 5

and above

15. When you loose money then on which you blame?

(a) Knowledge level (b) your decision (c) market (d)

Company

16. According to you which option is better to invest your money?

(a) Mutual Fund (b) Fixed Deposit (c) Insurance (d)

Share trading

17. Do you make any portfolio before investing in share trading?

(a) Yes (b) No

18. Reliance Money attracts more customers against other
brokerage company because

Where SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree and SD-Strongly

Disagree

SA A N D SD

1 Provide better return to the customer

2 Brokerage charges are very less

3 Transparency of money to the customer is

high
4 Security of money is high

5 Easy to access online trading

6 No charges if you do share trading

yourself
7 Charge coupon strategy is good

8 Provide full satisfaction to the customer

9 Provide the information in easy and better

way
1 More careful for his customer
0

Demography
Businessm
Studen Public Private
Occupation Housewife an
t employee employee
High Intermedi Post Professiona
Education Graduate
school ate Graduate l
Family
Expenses/m Up to 5,001- 10,000- 20,001- 30,001and
onth 5,000 10,000 20,000 30,000 above