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I would also like to thank the entire team of Reliance Money, for the
constant support and help in the successful completion of my project.
Shivam Punaini
TABLE OF CONTENT
BOARD OF DIRECTORS
RELIANCE MONEY
SWOT ANALYSIS
BRAND POSITIONING
RESEARCH METHODOLOGY
COMPETITOR ANALYSIS
DISCUSSION
CONCLUSION AND RECOMMENDATION
BIBLIOGRAPHY
ANNEXURE
INTRODUCTION TO THE COMPANY
Reliance Capital Ltd
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.
Reliance Capital 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.
Business Overview
RCL is registered as a depository participant with National Securities
Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL)
under the Securities and Exchange Board of India (Depositories and
Participants) Regulations, 1996. RCL has sponsored the Reliance Mutual
Fund within the framework of the Securities and Exchange Board of
India (Mutual Fund) Regulations, 1996.RCL primarily focuses on
funding projects in the infrastructure sector and supports the growth of its
subsidiary companies, Reliance Capital Asset Management Limited,
Reliance Capital Trustee Co. Limited, Reliance General Insurance
Company Limited and Reliance Life Insurance Company Limited. As of
March 31, 2005, the company’s investment in infrastructure projects
stood at Rs. 1071 Crores. The investment portfolio of RCL is structured
in a way that realizes the highest post-tax return on its investments.
Reliance Capital Ltd. is one of India’s leading and amongst the fastest
growing private sector financial services companies, and ranks among the
leading private sector financial services and banking companies, in terms
of net worth. Reliance Capital Ltd. has interests in asset management and
mutual funds, life and general insurance, private equity and proprietary
investments, stock broking and other financial services.
BOARD OF DIRECTORS
• Amitabh Jhunjhunwala, Vice-Chairman
• Shri C. P. Jain
Shri C.P. Jain, aged 60 years, is the former Chairman and Managing
Director of National Thermal Power Corporation (NTPC). Shri Jain has
an illustrious career spanning over four decades of contribution in the
fields of financial management, general management, strategic
management and business leadership. He is a fellow member of the
Institute of Chartered Accountants of India with an advanced diploma in
Management and is a law graduate. Shri C.P. Jain joined the Board of
NTPC in 1993 as Director (Finance) and was elevated as Chairman &
Managing Director in September 2000. He was Chairman of the Global
Studies Committee of World Energy Council (WEC), world’s largest
energy NGO with nearly hundred member-nations. He has been on
several important committees of the Government of India, latest being the
‘Adhoc Group of Experts on Empowerment of CPSEs’. He was
Chairman of Standing Conference of Public Enterprises (SCOPE)
between April 2003 and March 2005.
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
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. The facility of trading is subject to expiry of the
validity period or value limit, whichever comes first.
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
3 in 1 integrated access
Other Services
d. The Personal finance section provides tools that help you plan your
investments, retirement, tax, etc
Holding a company’s stock means that you are one of the many owners
(shareholders) of a company, and, as such, you have a claim (to the extent
of your holding) to everything the company owns. Yes, this means that
technically, you own a portion of every piece of furniture; every
trademark; every contract, etc. of the company.
Even if a company of which you are a shareholder goes bankrupt, you can
never lose your personal assets.
2. Derivatives Trading
3. Forex Trading
4. Commodity Trading
5. IPO's
6. Mutual Funds
7. Insurance
Reliance Money gives you the access to Over 5000 Schemes of 28 Assets
Management Companies (AMCs) with just one account. Some of them
included are.
Portfolio Tracker
Manage your mutual fund portfolio from the Reliance Money account.
Benefit from live valuation and alerts and also track NAVs of any scheme
online.
Choice of investment strategies
From just two scheme types (equity scheme and debt scheme) offered
when the mutual fund industry was conceived more than four decades
ago, today, mutual funds offer a plethora of scheme types with different
investment strategies.
Life Insurance
General Insurance
TYPE OF ACCOUNT
Reliance money is offering 3 types of accounts to its customers. Account
for beginners, for middlers and for experts.
Account opening with Reliance Money is easy. Simply fill a form online
at below address and somebody from Reliance Money will contact you
soon.
1. Extra security features with 'Security which is the most secure and
tested technology in computer world.
4. Branches are now available in all major cities and the number is
3. Its system is sometimes very slow and orders are not placed
at the time.
Simply walk down to any VISA enabled ATM near you and withdraw
your money invested in the fund (redeem your units).
Round-the-clock access
With the Reliance Any Time Money Card you can check the Current
Holding Value as well as the Withdrawal Limit of your investment any
time of the day or night. The card is your key to access your investment
round the clock.
Withdrawal Limits
You can withdraw only upto the maximum permissible ATM withdrawal
limit in a day (which is as prescribed by the Bank for ATM/Point of Sale
transactions) or 50%of your withdrawal limit (as set by Reliance Mutual
Fund) whichever is lower.
INVESTMENT OBJECTIVE
Strengths Weakness
• Products
Opportunities Threats
• Unfulfilled needs of
customers.
• Education level
• In the first phase we are given training and we are explained about
different things of market. They described us about Reliance Money,
introduction, products and services offered by Reliance Monet in the
market. We have been trained properly about Reliance Money.
• After that they conduct a mock viva, in this they ask about the real
life problem faced by the customers.
• They provide us leads and we make calls. Three types of leads are
provided to us:
People who have Demat account already with any another broker.
Reliance Money is the flagship brand of Reliance ADA Group for its
foray into Equity, Commodity and Forex broking in India. Reliance
Money is promoted by Reliance Capital, one of the largest NBFCs in
India.
The current leaders in the retail broking segment like ICICI Direct, India
Infoline and Indiabulls offer a ‘pay per use’ model where the customer
pays a percentage of the amount transacted by him
India has 270 million bank accounts, 30 million mutual fund folios, but
only 6 million unique demat accounts. “This low level of penetration by
existing brokerages means that the scope for business is tremendous.
The brokerage arm has already established its presence in 700 towns in
the country through 2500 outlets - part owned by the company and part
set up by franchisees.
This roughly translates to 0.05% for delivery trades and 0.005% for non-
delivery trades. Industry rates vary between 0.4% and 0.85% for delivery
trades, and between 0.05% and 0.10% for non delivery trades. Reliance
Money’s attempt to expand the breadth of the market has been dictated
by the growing interest in the stock market among a number of investors
in the smaller towns and cities.
Reliance Money Ltd is changing tack in order to move a step beyond the
retail business, which has so far been its mainstay.
RML, which intends to compete with strong retail brokerage players like
ICICI Direct, will soon start catering to institutional clients in a more
organised manner, though retail will continue to be its focus.
The company plans to pay more attention to an area that has already seen
considerable demand, courtesy wholesale investors who are increasingly
providing significant business to securities broking outfits.
The idea is to increase the number of outlets RML currently has in order
to reach out to more customers.
Investors have two options while trading through Reliance Money. They
can use the internet or call in their orders for company officials to
execute.
The country has an immense growth potential with 30 crore plus bank
accounts and three crore Mutual Fund folios in a 12-years old industry.
There are only six million unique depository accounts, although the
industry is over 100 years old. India saves 28 per cent as a percentage of
GDP and only 5 per cent of this saving is invested in capital markets.
There is an urgent need to spread the equity culture to increase the depth
of capital market and enable wider participation. This can only change if
we spread it across the country.
RESEARCH METHODOLOGY
Primary Data:
Questionnaire Design
A questionnaire is designed to know the view of employees of the
companies as well as of the customer perception about reliance financial
products..
Secondary Data
Under Secondary sources, we tapped information from internal &
external sources. We made use of Internet (such as search engine
www.google.com), and miscellaneous sources (such as brochures,
pamphlets, library) under external sources.
ANALYSIS
To make our research project most effective in a given time period of two
months surveyed the information of the competitors. We undertook both
Explorative as well as Conclusive Research Design. The data has been
collected from both Primary as well as Secondary sources and we also
did the fieldwork for which utmost care has been taken to keep project
unbiased from personal opinion.
The marketing department can use this study to enhance their marketing
strategies for better sales. This report helps marketing department in
taking decision to what change in distribution channels and what should
be done so that marketing problem could be shorted out and how to sell
their range of product in the competitive market.
Services Of Competitors:
We cannot give proper comment on competitor’s services till we use it.
But I try to collect as accurate information as possible. As we all know
services are intangible and we cannot predict its quality, it is a thing to
feel not to see.
The main data sources are websites, telephonic information and offices
visit.
- Since most of the people are quite experienced and also they are not
techno savy. Also Internet penetration is poor in India.
Misleading concepts: -- Some people think that Shares are too risky and
just another name of gamble but they don’t know its not at all that risky
for long investors.
SCOPE OF THE STUDY
2. The study can be used to design a proper product, price, place &
promotional strategy for stock market.
3. From the present study we can know the market share of different
by-products and accordingly formulated strategy to enhance it.
Type of Account
MOSt E-Broking
Awards
Type of Account
Advantages of IDBIPaisaBuilder
Over Internet:
On Phone:
Through Email:
ICICI DIRECT
Disadvantages of ICICIDirect
SHAREKHAN
Type of Account
e. IPO investments
Type of Account
160 150
140
120
100
80
60
40
20
0
Reliance Capital Reliance Telecommunication Reliance Energy Reliance Industries
160 150
140
120
100
80
60
40
20
0
Anil Dhirubhai Ambani Mukesh Ambani Don’t Know
Q3.) Reliance Money deals in
Equity Mutual Life/General Credit Cards All
Funds Insurance
110 70 50 40 40
120
110
100
80
70
60
50
40 40
40
20
0
Equity Mutual Funds Life/General Credit Cards All
Insurance
Yes No
110 40
No
27%
Yes
73%
Long term
20%
Short term
80%
Zero Risk
13%
Very High
Risk
Low Risk
13%
47%
Moderate
Risk
7%
High Risk
20%
Q7.) Which Risk/Return pattern do you expect from your investment
fund?
Low risk/Low Low Moderate High risk/High
return risk/Moderate risk/Moderate return
return return
25 45 50 30
Low risk/Moderate
return
Moderate
30%
risk/Moderate
return
33%
Private sector
20%
Q9.) In which investment option will you like to put your money?
Securities Fixed Deposits Mutual Funds Insurance
70 110 50 120
120
120
110
100
80
70
60
50
40
20
0
Securities Fixed Deposits Mutual Funds Insurance
Children
Future Education
contingencies 17%
30%
Retirement
Benefit
Marriage of
33%
Children
20%
Q11.) Your yearly average investment?
Rs.2 lac-Rs.5
lac
17%
Rs.50,000- Rs.2
lac
17%
Rs.50,000
66%
5
5
4.5
4
4
3.5
3
3
Ranks
2.5
2
2
1.5
1
1
0.5
0
Fixed Deposits Mutual Funds Equity ULIP IPO
Q13.) W hat factors you consider while investing your money? (Rank 1
to 5, 1 is lowest)
4
4
3.5
3
3
2.5
Ranks
2
2
1.5
1
1
0.5
0
Tax Benefit Return Benefit Safety Risk
Reliance Money
Indiabulls 33%
40%
Sharekhan
27%
Q15.) Which type of company would you prefer to invest in under IPO’s?
Reliance
Money
Indiabulls
33%
40%
Sharekhan
27%
Q16.) Which type of investment will you prefer for Mutual Fund?
SIP Lumpsum
110 40
Lumpsum
27%
SIP
73%
Balance
40%
Q18. What are the various sources from where you get the information on
investment options?
Magazines Financial Websites Agents/Relation
Newspapers ship managers
15 45 25 80
80
70
60
50
40
30
20
10
0
Magazines Websites
DISCUSSION
To say that online investing has grown extraordinarily fast over the past
couple of years is akin to describing Marilyn Monroe as reasonably
attractive. While it may be easy to trade on the Net, finding the right
online broker takes some doing.
Given that online trading is still at a nascent stage, online brokers are
willing to offer many options -- brokerages that decline as volumes soar,
waiver of account opening charges, access to research reports, and the
facility of transacting in financial instruments through the trading
website. So whom should you choose? The answer depends on a host of
variables -- both qualitative and quantitative.
Qualitative factors are usually a little hard to assess and largely pertain to
expectations of service standards. It helps to talk to acquaintances who
trade online about the website's reliability, ease of fund transfer and
transaction, and the customer service quality of the e-broker, the only
human interface in the entire mechanism. Nonetheless, there are some
key factors that help you compare e-brokers.
Brokerage. It's a recurring cost and can potentially draw down returns.
Every player claims that his brokerage is the lowest or at least promises
to charge the minimum once an investor opens an account and starts
trading. But this promise is contingent on the trading volumes of the
investor.
The brokerage for the quarter that follows the opening of an online
trading account is determined by the opening amount of investment,
irrespective of the subsequent investments in that quarter.
Any amount due to either the broker or investor over and above the
brokerage paid is settled every quarter and the opening amount of the
next quarter determines the brokerage that will be paid in that quarter.
Position traders -- investors who buy and hold securities for the long haul
-- typically opt for low brokerages. Daily traders, who trade in large
volumes, usually settle for what brokers call zero per cent brokerage.
This does not mean that they are not charged brokerage, but alludes to a
fixed brokerage fee irrespective of turnover or up to a certain turnover for
a period of time: higher the investment, lower the brokerage.
For onliners
• Opt for the same depository and trading body to avoid delays in
settlement of shares and cash.
• Check out the website's speed and reliability, ease of fund transfer,
and the e-broker's customer service quality.
Investors need to remember amidst the daily onslaught of tips that too
much trading does not necessarily translate into big bucks.
Tie-ups with banks. To trade with a broking company, you need to have
an account with one of its collaborating banks. Typically, broking firms
have fewer collaborations with public sector banks. Almondz scores
above others here since it has tie-ups with numerous private sector banks
and 19 public sector ones.
CONCLUSION
For an investor the main investment objectives are increasing the rate of
return & reducing the risk other objectives like safety, liquidity & hedge
against inflation can be considered as subsidiary objectives.
While investing in stock market the first step is to assess a company from
a qualitative standpoint and determining whether you should invest in it
are as important as looking at sales and earnings. This strategy may be
one of the simplest, but it is also one of the most effective ways to
evaluate a potential investment.
• Flexibility in Brokerage.
INTERNET LINKS:-
www.investsmartonline.com
www.indiainfoline.com
www.sharekhan.com
www.indiabulls.com
www.icicidirect.com
www.kotaksecurities.com
www.nseindia.com
www.bseindia.com
www.sebi.com
www.econimictimes.com
www.businessstandard.com
http://www.google.com
http://www.yahoo.com
ANNEXURE
Name
Age:
Gender:
Profession:
Address:
Q9.) In which investment option will you like to put your money?
A9.) Securities Fixed Deposits Mutual Funds Insurance
Others
Q15.) Which type of company would you prefer to invest in under IPO’s?
A15.) Large Cap Mid Cap Small Cap
Q16.) Which type of investment will you prefer for Mutual Fund?
A16.) SIP Lumpsum