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SUMMER TRAINING PROJECT REPORT

ON

TO STUDY THE AWARENESS OF THE


FINANCIAL PRODUCTS OF
RELIANCE MONEY
Submitted to :
Kurukshetra University, Kurukshetra
For The Partial Fulfillment Of
Master Of Business Administration ( Finance )
Project Done at
RELIANCE MONEY

Supervised By: Submitted By:


Prof. Ajay Sidana Shivam Punaini
Head, Deptt MBA M.B.A- III ( Finance )
Class Roll No- 953

AMRIT INSTITUTE OF MANAGEMENT,


SHAHPUR
ACKNOWLEDGEMENT

I must acknowledge my indebtedness to various personalities, but for


whom, this project could not have seen the light of the day.

I express my sincere gratitude to my guide Mr Manish Kaushik for his


able guidance, continuous support and cooperation throughout my
project, without which the present work would not have been possible.

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

TOPICS PAGE NO.

INTRODUCTION TO THE COMPANY

BOARD OF DIRECTORS

RELIANCE MONEY

INNOVATIVE USE OF TECHNOLOGY

RELIANCE MUTUAL FUNDS

RELIANCE EQUITY ADVANTAGE FUND

RELINNCE REGULAR SAVING FUND

SWOT ANALYSIS

PROCEDURE OF CLIENT ACQUISITION

BRAND POSITIONING

RESEARCH METHODOLOGY

LIMITATIONS OF THE PROJECT

SCOPE OF THE STUDY

COMPETITOR ANALYSIS

ANALYSIS AND INTERPRETATION

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.

Reliance Capital entered into lucrative online trading business with


Reliance money. There are mixed reports about this online trading
platform. It shook up online trading business with cheap brokerage
charge offer.

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

Amitabh Jhunjhunwala, an FCA, has over 23 years of experience in


finance and the capital markets. Amitabh is also the Director of Reliance
Capital Asset Management Limited.

• Rajendra Chitale, Independent Director

Rajendra P. Chitale, an eminent Chartered Accountant, is the Managing


Partner of M/s M. P. Chitale & Co. He is a Director on Boards of the
National Stock Exchange of India (NSE), Asset Reconstruction Company
(India) Ltd, Hinduja TMT Ltd and Gujarat Ambuja Cements Ltd. He is
also a member of the Advisory Group on Derivatives and the Takeover
Panel, Securities and Exchange Board of India, as well as the Company
Law Advisory Committee of the Government of India.He has also served
on the boards of Life Insurance Corporation of India, Unit Trust of India,
SBI Capital Markets Ltd and Small Industries Development Bank of
India.

• 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

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, IPOs, Mutual Funds, Life Insurance and General Insurance
products

Reliance Money is the most cost-effective, convenient and secure 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. The facility of trading is subject to expiry of the
validity period or value limit, whichever comes first.

Illustrations depicting 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

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
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

Hassles 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:


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

b. Live news from Reuters and Dow Jones


c. CEOs'/experts' views on the economy and financial markets

d. The Personal finance section provides tools that help you plan your
investments, retirement, tax, etc

e. Analyze your risk profile through the Risk Analyzer

f. Get a suitable investment portfolio using the Asset Allocator

KEY BENEFITS OF RELIANCE MONEY

Equity is a share in the ownership of a company. It represents a claim on


the company’s assets and earnings. As you acquire more stock, your
ownership stake in the company increases. The terms share, equity and
stock mean the same thing and can be used interchangeably.

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.

As an owner, you are entitled to your share of the company’s earnings as


well as any voting rights attached to the stock.

Another extremely important feature of equity is its limited liability,


which means that, as a part-owner of the company, you are not personally
liable if the company is not able to pay its debts. In case of other entities
such as partnerships, if the partnership goes bankrupt, the partners are
personally liable towards the creditors/lenders and they may have to sell
off their personal assets like their house, car, furniture, etc., to make good
the loss. In case of holding equity shares, the maximum value you can
lose is the value of your investment.

Even if a company of which you are a shareholder goes bankrupt, you can
never lose your personal assets.

Here is some Useful Information available on R- Money:

Investment options are available in:

1. Equity (Stock) Trading

2. Derivatives Trading

*Special feature is available first time to track your positions online, in


real time.*

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

Reliance Money Account gives you the advantage of buying policies


from 12 different Life Insurance companies, helping you get unbiased
opinion.

General Insurance

Reliance Money Account also extends the product offerings from 10


General Insurance Companies with exhaustive range of insurance
products that covers most risks including Motor, Health, Property,
Marine, Casualty and Liability.

Over the Counter Products

Your Reliance Money Account makes it so simple for you to buy


insurance products that its as easy as buying something over the counter.

RelianceMoney.com is offering most dynamic web based trading


environment to its customers. The new trading platform has many new
features which basically fill up the gap between old online trading
companies in India and their customers.

The Reliance Money trading websites comes with special security


features Security Token, which makes you online trading experience
more secure without complexity.
Stock Trading is available in BSE and NSE. Offline trading is also
available through Reliance Money partners in your city and through
phone by dialing 022-39886000.

TYPE OF ACCOUNT
Reliance money is offering 3 types of accounts to its customers. Account
for beginners, for middlers and for experts.

How to open account with Reliance Money?

Account opening with Reliance Money is easy. Simply fill a form online
at below address and somebody from Reliance Money will contact you
soon.

Advantages of Reliance Money

1. Extra security features with 'Security which is the most secure and
tested technology in computer world.

2. Simple, easy and fast online stock trading.

3. Almost all investment options are available under one account

including Equity Trading, Derivatives, Forex, Commodity, IPO,


Mutual Funds and Insurance.

4. Branches are now available in all major cities and the number is

growing. Branches are open from 9am to 9pm. Online trading is


presently at its nascent stage and is not the most preferred option for
financial transactions owing to security concerns and lack of
accessibility points. Reliance Money through these hi-speed,
technologically secure kiosks will therefore be able to reach out to all
its existing and potential customers at even the remotest locations in
the country without compromising on the security of its customer’s
funds.

Why should you choose Reliance Money?

1. Because it is from Reliance. Reliance capital has big plans


regarding this business. It may announce attractive offers to gain
market share. Reliance will never enter into a business with small
plans.

2. Its brokerage charges are lowest in the country among major


providers. With Rs 2500 prepaid amount, you can trade for Rs 5 crore.

3. Site is simple in design, fast to access and easy to find


required information.

4. Its daily reports on market trends and technical breakouts are


very useful.

5. Website content is divided according to the requirements of


experts and beginners.

6. You can trade in Forex, Derivatives, Mutual funds, IPO and


buy Insurance.

Why should you stay away from reliance Money?


1. The trading platform is still in development stage. There are
many bugs needs to be rectified.
2. Its “Insta trade” service is not up to the standard. Reliance
Money software is a java based simple software. It should provide
advanced software to meet the needs of advanced traders.

3. Its system is sometimes very slow and orders are not placed
at the time.

4. Its market watch solution is a way behind its competitors


like Money control and ICICIdirect.

5. Its service people are not as efficient as competitors.

6. It is still not providing options to buy Post office savings.

7. It is recommending few stocks even when stock markets are


on roll.

Reliance Money still needs many improvements to its online trading


platform. Reliance capital is spending big money to improve the service.
It needs to train service to the needs of market people. It still needs to
include more research reports like ICICIdirect website.

It should make complete makeover to market watch page. It is too early


to make final judgment on Reliance money.
INNOVATIVE USE OF TECHNOLOGY

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 the earlier transaction is discarded). This number works
as a third level password that keeps you account extra safe. It was much
popular during the last decade but due to the changes in the technologies
it is not currently used in the current scenario due to that it is diminish
from the market
RELIANCE MUTUAL FUNDS

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani


Group is one of the fastest growing mutual funds in the country. Reliance
Mutual Fund offers investors a well-rounded portfolio of products to
meet varying investor requirements. Reliance Mutual Fund has a
presence in over 100 cities across India and an investor base of over 3.38
million.
Reliance Mutual Fund constantly endeavors to launch innovative
products and customer service initiatives to increase value to investors.
Reliance Mutual Fund schemes are managed by Reliance Capital Asset
Management Ltd., a wholly-owned subsidiary of Reliance Capital Ltd.
(An open-ended Diversified Equity Scheme.)

The primary investment objective of the scheme is to seek to generate


capital appreciation & provide long-term growth opportunities by
investing in a portfolio predominantly of equity & equity related
instruments with investments generally in S & P CNX Nifty stocks and
the secondary objective is to generate consistent returns by investing in
debt and money market securities.

Get the Reliance Equity advantage

Just as an expert coach identifies a promising talent, investing in equity


markets requires an expert's foresight. At Reliance Mutual Fund they
have groomed a team of professionals with the aim to get the maximum
advantage out of your investments. Introducing Reliance Equity
Advantage Fund, an open-ended diversified equity scheme which seeks
to generate capital appreciation and provide long-term growth
opportunities for your investments.

Reliance Equity Advantage Fund

Reliance Equity Advantage Fund is an open-ended diversified equity


scheme, which proposes to invest in line with the sector ratio of S&P
CNX Nifty. At least, 70-100% of corpus will be invested in equity &
equity related instruments and the balance 0-30% in Debt & Money
market instruments.

RELIANCE REGULAR SAVINGS FUND


(An Open-ended Scheme.)

Reliance Regular Savings Fund provides you the choice of investing in


Debt, Equity or Balanced options with a pertinent investment objective
and pattern for each option.

The Reliance Regular Savings Fund is an open-ended scheme, which


comes with its own ATM cum Debit card -the Reliance Any Time Money
Card.You don't have to give up the returns of a mutual fund for instant
availability of cash. The Reliance Regular Savings Fund endeavours to
deliver both.
For the first time in India, your mutual fund offers instant cash
withdrawal facility on your investment at any VISA-enabled ATM near
you. With a choice of three investment options, the fund is truly, the
smart new way to invest.

Get instant cash when you need it

Simply walk down to any VISA enabled ATM near you and withdraw
your money invested in the fund (redeem your units).

Cashless transactions at over 24 million* Merchant Establishment


locations
The Reliance Any Time Money Card is accepted at over 24 million
Merchant Establishment locations worldwide. You can now have cashless
transactions, whenever you make a purchase or use the service at any
Merchant Establishment validated by VISA.

Just Rs.100/-per month


Invest as little as Rs.100/-every month in the Reliance Regular Savings
Fund through the Systematic Investment Plan (SIP) route to build your
investment little by little, month by month. Now even your small savings
can mean a lot.

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

Reliance Regular Savings Fund provides you the choice of investing in


Debt, Equity or Balanced options with a pertinent investment objective
and pattern for each option.

Debt Option: The primary investment objective of this option is to


generate optimal returns consistent with a moderate level of risk. This
income may be complemented by capital appreciation of the portfolio.
Accordingly, investments will predominantly be made in Debt & Money
Market Instruments.

Equity Option: The primary investment objective of this option is to


seek capital appreciation and/or to generate consistent returns by actively
investing in Equity &Equity-related Securities.

Balanced Option: The primary investment objective of this option is to


generate consistent returns and appreciation of capital by investing in mix
of securities comprising of equity, equity related instruments & fixed
income instruments.
SWOT ANALYSIS

Strengths Weakness

• Service • Customer Satisfaction

• Distribution network • Branding

• Marketing • Competition from Banks

• Products

Opportunities Threats

• Ever increasing market • New competitors

• Improving technology • Technology based business

• Unfulfilled needs of
customers.

• Education level

A SWOT analysis focuses on the internal and external


environments, examining strengths and weaknesses in the
internal environment and opportunities and threats in the
external environme
PROCEDURE OF CLIENT ACQUISITION

• 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 registers themselves on Reliance Money website


willing to be client of Reliance Money and want to know about its
product.

 People who have Demat account already with any another broker.

 # People who are totally unknown to this market.

• Then after that we have to provide details of product and convince


them. People who have already Demat account, we have to convince
them by giving information about Reliance Money services benefits.

DOCUMENTS PHOTOCOPIES REQUIRED:-

(A) TWO COLOURED PHOTOGRAPHS (self signed).


(B) For Identification Proof - VOTER ID CARD / DRIVING
LICENCE / PASSPORT/ PAN CARD (ANY ONE)
(C) For Residence Proof - BANK STATEMENT / VOTER ID CARD /
RATION CARD / DRIVING LICENCE /PASSPORT / TELEPHONE
BILL STATEMENT /ELECTRICITY BILL STATEMENT
(ANY ONE)
(D) Bank statement
(E) One account opening cheque
(F) You can also deposit the initial margin money at the time of opening
the account
• Maintaining dairy of clients and contacting them at regular basis.
To get feedback from them about Reliance Money services.
BRAND POSITIONING

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.

Reliance Money, the brokerage and distribution arm of Reliance ADA


Group, aims to tap investors in the smaller towns and cities through a flat
fee structure.

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.

Reliance Money’s brokerage rates are quite competitive. Pre-paid cards


of various denominations is to help investors with varying risk appetites.
If one buys a Rs 500 card, he can carry out delivery trades up to Rs 10
lakh and/or non-delivery trades up to Rs 1 crore.

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.

Through its state-of the-art online trading platform, Reliance Money is


gradually making an active foray into Equity, Commodity and Forex
broking. For the first time in India, R Trade will provide the Indian
investor the facility of trading in equity, commodity and forex on a single
platform.

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.

Reliance Money has also partnered UK-based CMC Markets, a global


player in the online derivatives trading segment, to bring overseas
investment products to Indian investors. This tie-up is to enable
customers of Reliance Money gain access to several offshore products
including — foreign equities, currency and commodities within the RBI-
mandated limits. As a matter of fact, several investors reportedly made a
killing by trading on the shares of Corus in the days prior to its auction.

It is an endeavour to change the way India trades in financial markets and


avails of various financial services. Reliance Money ensures maximum
security with a unique security token to keep your online account safe.
Reliance Money plans to be the largest player, at least as big as the next
four companies in the commodities broking space. Since a lot of money
has been lost in commodities markets in recent times, there is a need for a
well-designed product to bring back investor confidence. To take
participation to the next level, it is imperative to build awareness among
retail investors. Further, given the current level of maturity, the dealer
franchisees need to be trained before the knowledge can percolate down
to every participant.
Retail financial services firm Reliance Money has tied with depository
NSDL and National Stock Exchange to spread equity investment culture
in the country, an initiative that will help it double its customer base by
this fiscal end.

Reliance Money aims to expand the market by bringing in newer


investors and facilitating them through appropriate handholding at the
initial stages of their capital market journey. The initiative aims to
introduce a consumer education programme for educating over one lakh
new investors in the country over the next six months, the company said.
The programme involves educating and guiding new investors in basics
and fundamentals of investing in equities and addressing various issues
related to stock market. Since its launch in April, the Anil Dhirubhai
Ambani group firm has already roped in 1.50 lakh customers and plans to
multiply this number to over three lakh by the end of this fiscal with such
retail initiatives, the company said. Average daily turnover for Reliance
Money has already crossed Rs 600 crore, over one per cent of total
turnover of NSE and BSE, since its launch.

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

Type of research : DESCRIPTIVE RESEARCH

Sample size : 150

Sampling technique : RANDOM SAMPLING

Primary Data:

First hand information was obtained through face-to-face interviews and


questionnaire.

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.

SIGNIFICANCE OF THE STUDY

Every research is conducted to fulfill certain objective and these


objectives in turn fulfill some purpose. MBA curricular is designed to
give more practical exposes to the student so that he can make use of
theoretical knowledge in the real life situation, with this thrust
dissertation study has been included which provides opportunity to
research to gain practical insight of the market. This hand on experience
helps him in identifying the critical factor of consumer buying behavior.
This rich experience will be great help in researcher’s future endeavors
and it also solves the purpose for the partial fulfillment of MBA
curriculum.

I sincerely believe that road to improvement is never- ending and one


always learns from a new experience. This project is a step towards
gaining knowledge about real world and putting the theory of practice. I
shall look forward to and gratefully acknowledge all suggestion on this
small step I have taken.
The report consists of a step–wise efforts towards meeting the objectives
of the study. It covers the step-wise collection of data collection and the
representation of the data together with the analysis. It also includes some
suggestions put forward hoping it would help the company achieve its
vision.

MANAGERIAL USEFULNESS OF THE STUDY

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.

The very essence of every project related to marketing is providing a


view to management for chalk out the organization. So that they can
maintain a viable fit between the organization objective, skill and
resources and it’s changing market opportunities. Also give proper shape
to the company business target profit and growth. It provides a feedback
to the organization about their sales, sales schemes and what impact dose
it has on the retailers and consumer. Every market research proves useful
suggestion to the organization. Marketing research helps the firm in every
component of the total marketing task. It helps the firm in every
component of the total marketing task. It helps the firm acquire a better
understating of the buyer, the competition and marketing environment. It
also aids the formulation of the marketing mix, product, distribution and
pricing needs marketing research support. It also in taking the
information of competitor’s strategies and their impact on the buyer. The
study revels may fact that have come up during the project and these facts
can either be used as opportunities in exploring and expending the
business as well as can be used as safeguard against threats by the
competitors to prepare an effective marketing strategy. Every market
research proves usefulness to the organization. Marketing research helps
the firm in every component of the total marketing task. Its helps the firm
acquire a better understanding of the consumer, the competition and the
marketing environment. It also aids he formulation of marketing mix,
decision on each element of marketing mix, product, distribution and
promotion and pricing etc need the support of marketing research
LIMITATIONS OF THE PROJECT

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.

No proper assurance of right information:

The main data sources are websites, telephonic information and offices
visit.

• The data on websites might be possible, not get updated.

• The marketing person might be possible, is not through with all


concepts to whom I contacted.

• Sometimes, they try to hide information.

• Lack of awareness of Stock market: -- Since the area is not


known before it takes lot of time in convincing people to start
investing in shares primarily in IPO’s.

Mostly people comfortable with traditional brokers: -- As people are


doing trading from there respective brokers, they are quite comfortable to
trade via phone.
Lack of Techno Savvy people and poor Internet penetration:

- Since most of the people are quite experienced and also they are not
techno savy. Also Internet penetration is poor in India.

Some respondents are unwilling to talk: -- Some respondents either do


not have time or willing does not respond, as they are quite annoyed with
the phone call.

Inaccurate Leads: -- Sometimes leads are provided which had error in it


which varies from only 5 digit phone number to wrong phone number

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

These are some of the following scope of the study:-

1. The present study can be extended to assess the present marketing


condition of stock market.

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.

4. The result of marketing success of different by-product can be


interpreted to assess the rate of employee’s satisfaction in that department
(marketing).

5. This study can be applied to find out an effective distribution


channel to enhance the sale of by-product of Reliance Money.
COMPETITOR ANALYSIS
5 PAISA

5paisa is Online Stock Trading Company of India


Infoline Securities Private Ltd. , Owner of popular
business portal Indiainfoline.com. Besides high quality
investment advice from an experienced research team, the
site offers real time stock quotes, market news and
multiple tools for technical analysis. Trading is available
in BSE and NSE.

Trading Terminals Available

Investor Terminal (IT)

Investor Terminal is 5Paisa's equity trading terminal for


low volume trader. This is web based terminal and could
access from anywhere. This product provides limited
features in comparison of Trader Terminal, which is
another product provided by 5Paisa.
Trader Terminal (TT)

Trader Terminal is for high volume equity traders. Trader


Terminal provides high volume trading with powerful
interface and fast order execution.

Advantages of 5paisa Trading Terminals

1. Very fast execution speed.

Disadvantages of 5paisa Trading Terminals

1. No intra-day tick by tick charts in Investor Terminal


(IT).

2. Learning 5paisa Trading Terminal is little hard.


MOTILAL OSWAL SECURITIES

Motilal Oswal Securities Ltd. (MOSt) is one of the best


broking houses in India. Founded in 1987, MOSt has in
200 cities through 400 outlets. MOSt provide advice-
based broking (equities and derivatives), portfolio
management services (PMS), e-Broking, depository
services, commodities trading, IPO and mutual fund
investment advisory services.

Type of Account

MOSt E-Broking

MOSt E-Broking is complete online stock trading


solution for Indiaian stock market. Following are the
features of MOSt E-Broking account:

Easy single screen trader with instant trade confirmation


similar to exchange based trading terminals.
Access to various online reports like margin report,
Demat A/c details, trades executed, turnover report, net
position report with mark to market profit/loss and
realized profit.

Online transfer funds through HDFC Bank.

How to open account with Motilal Oswal Securities


Ltd. (MOSt)?

You could use one of the following options to open


account with ICICIDirect.

• Visit MotilalOswal.com and fill the "Open an


Account" form.

• Contact MOSt by sending email at


mybroker@motilaloswal.com

• Call MOSt and tell them that you are interested in


opening an account with them.

Awards

1. 2005, Asiamoney Brokers ranked MOSt the best


Indian brokerage firm in India.

2. March 2006, AQ Research declared MOSt the best


research house for Indian stocks.
HDFC SECURITIES

HDFC Securities (HDFCsec) is Equity Trading Company


of HDFC Bank. HDFC Securities provide both online
trading and trading on phone. The HDFC Securities
trading account has a unique 3-in-1 feature that integrates
your HDFC Securities trading account with your existing
HDFC bank savings account and existing Demat account.
Funds / shares are seamlessly moved from the linked
Demat/Bank account to execute the transactions.

HDFCsec provides Cash-n-Carry on both NSE and BSE,


Day trading on both NSE and BSE, Trade on Futures &
Options on the NSE and Online IPO Investment.

Features on HDFC Securities Online trading

1. Seamless Transactions - By integrating your


accounts, we ensure minimal waste of time during
movement of your funds and shares.
2. Speed - Orders are placed electronically, so proceeds
are available instantly.

3. No manipulation - To prevent any mismanagement,


we will send you an email confirmation, the minute
your order is executed.

4. Safety and Security - HDFC Securities offer the


highest level of security such as 128-bit encryption
technology.

5. Dedicated and Separate contact numbers - for


trading over the phone as well as for customer care.

Document Required to open account with HDFCsec

Any Indian resident/non resident individual NRI (except


for the US NRIs ) or an Indian Corporate can register
with HDFC sec. However, to become a member, you will
have to open savings/current and Demat accounts with
HDFC Bank. Following documents are required to open
account with HDFC sec.

1. One passport size photograph.

2. Copy of PAN card.

3. Identity proof - copy of passport or PAN card or


voter ID or driving license or ration card.
4. Address proof - copy of driving license or passport
or ration card or voter card or telephone bill or
electricity bill or bank statement.

Brokerage and fees :

1. Rs. 799/- (Including trading account, bank account

and DP account with HDFC)


Please note: HDFC Bank savings account required a
quarterly minimum balance of Rs. 2,500/-. If you
already have Saving account or DP account with
HDFC, you could link them with trading account.

IDBI PAISA BUILDER

Idbipaisabuilder.in is a multi purpose online stock trading


website from IDBI Capital Market Services Ltd. , a
leading provider of financial services in India and is a
100% subsidiary of Industrial Development Bank of India
(IDBI).
Idbipaisabuilder.in allows investing in equity shares,
derivatives (futures & options) mutual funds & IPO's in
India Stock Markets. You can buy or sell securities on
NSE and BSE Stock exchanges.

Type of Account

Paisa Power Classic Trading Terminal

Paisa Power Classic Account

Paisa Power Classic Account is online stock trading


account for beginners and low volume traders in India
Stock Market. It allows investor to invest in Equity,
Mutual Funds and IPOs online. Following are few
popular features of this account:

a. Online trading account for investing in Equities


and Derivatives.

b. Short learning curve helps you to start quickly.

c. Easy to use features.


d. Evaluate & buy mutual funds schemes online
and check on fund rankings through our
performance map.

e. Apply for IPO’s online. No paper work or


check required for applying in IPOs.

f. Integration of: Online trading + Bank + Demat


account

g. Trading is available in both BSE and NSE.

Paisa Power Streaming Trading Terminal

2. Paisa Power Streaming Account

Paisa Power Streaming Account for online trading is


for high volume and frequent equity traders. As classic
account this account also provides investment options
in Stocks, Mutual Funds and Initial public offers
online. Following are few popular features of this
account:
a. Live refreshing equity prices, which enable you
to keep track of every price movement as soon
as it takes place.

b. Setting price alerts on the scripts in order to


notify you as soon as your scrip reaches a
particular price point.

c. Multiple market watches, message window and


trading window.

d. Evaluate & buy mutual funds schemes online


and check on fund rankings through our
performance map.

e. Apply for IPO’s at the click of a button without


any of the hassle of tedious paperwork and
processes involved in an offline IPO
application.

f. Trading is available in both BSE and NSE.

Brokerage and fees:

Advantages of IDBIPaisaBuilder

1. Idbipaisabuilder.in enables you to set up a single


integrated 3-in-1 account that links your Bank,
Demat and Trading accounts.

2. All your transactions are online which means


absolutely no paperwork involves.
3. You can invest anywhere, at absolutely anytime,
even when the market is closed. All your orders are
confirmed immediately with no delays.

4. Trade over Phone (ToP) facility is available in


addition to internet trading. ToP allows you to place
orders or check order status on phone.

5. Idbipaisabuilder.in website is 'Version Certified',

which ensures complete confidentiality of your


transactions with highest security.

6. Help documents and demos are available to invest in


equity, mutual funds and IPO’s which helps you to
get familiar with the process on investing through
Idbipaisabuilder.

How to open an account with IDBIPaisaBuilder?

Over Internet:

Fill a simple form and Idbipaisabuilder


representative will contact you with all formalities
to open an account.

On Phone:

Call Toll Free Number: 1800-22-3366 or 022-3291


5001

Through Email:

Simply send an email to info@idbipaisabuilder.in ,


requesting for any information you required.

Visit Branch Offices:


Click here to find out nearest IDBIPaisaBuilder
Branch Offices.

Useful links & info about IDBIPaisaBuilder

1. Official website: http://www.idbipaisabuilder.in/

2. List of Branch Offices .

3. Product Demo: Paisa Power Classic Account

4. Product Demo: Paisa Power Streaming Account

5. Corporate office: IDBI Capital, Mafatlal Center,


5th Floor Nariman point, Mumbai 400-021 India

6. Customer Service E-mail: email-


Custcare@idbipaisabuilder.in

7. Customer Service Phone: 1800-22-3366

ICICI DIRECT

ICICI Direct (or ICICIDirect.com) is stock trading


company of ICICI Bank. Along with stock trading and
trading in derivatives in BSE and NSE, it also provides
facility to invest in IPOs, Mutual Funds and Bonds.
Trading is available in BSE and NSE.
Type of Account

Share Trading Account

Share Trading Account by ICICIDirect is primarily for


buying and selling of stocks in BSE and NSE.
This account allows Cash Trading, Margin Trading,
MarginPLUS Trading, Spot Trading, Buy Today Sell
Tomorrow and Call and Trade on phone.
ICICIDirect.com website is the primary trading platform
for this trading account. They also provide installable
application terminal based application for high volume
trader.

Wise Investment Account

Along with stock trading and IPO investing in BSE and


NSE, Wise Investment account also provide options to
invest in Mutual Funds and Bonds online.
Online Mutual funds investment allows investor to invest
on-line in around 19 Mutual Fund companies. ICICI
Direct offers various options while investing in Mutual
Funds like Purchase Mutual Fund, Redemption and switch
between different schemes, Systematic Investment plans,
Systematic withdrawal plan and transferring existing
Mutual Funds in to electronic mode. This account also
provides facility to invest in Government of India
Bonds and ICICI Bank Tax Saving Bonds .
ICICIDirect.com website is the primary tool to invest in
Mutual Funds, IPOs, Bonds and stock trading.

Active Trader Account

Active Trader account gives more personalized


investment options to the investors. It allows investor to
use online and offline stock trading. It also provides with
independent market expertise and support through a
dedicated Relationship Manager from ICICI.
Active Trader also provides commodity trading.

Brokerage and fees :

1. Account opening fees : Rs 750/- (One time non-


refundable)

2. Brokerage : ICICIDirect.com brokerage varies on


volume of trade and inclusive of demat transaction
charges, service taxes and courier charges for
contract notes. It ranges from 0.1% to 0.15% for
margin trades, 0.2% to 0.425% for squared off trades
and 0.4% to 0.85% on delivery based trades.

How to open account with ICICIDirect?

For Online Stock Trading with ICICI, investor needs to


open 3 accounts...ICICI Bank Account, ICICI Direct
Trading Account and ICICI Demat Account (DP
Account).

Note: If you already have a bank account or demat


account with ICICI, you could link it with new
ICICIDirect trading account.

Opening trading account with ICICI is easy. You could


use one of the following options to open account with
ICICIDirect.

• Visit ICICIDirect.com and fill the "Open an


Account" form.

• Call ICICI and tell them that you are interested in


opening an account with them.

In both the cases ICICI representative contact you in a


day or two and tell you about the procedure to open the
account. They usually send somebody to your home to
collect documents, signature and for demo if required.
Advantages of ICICIDirect

1. 3-in-1 account integrates your banking, broking and


demat accounts. All accounts are from ICICI and
very well integrated.

2. Investment online in IPOs, Mutual Funds, GOI


Bonds, and Postal Savings Schemes all from one
website. General Insurance is also available from
ICICI Lombard.

3. Trading is available in both BSE and NSE.

Disadvantages of ICICIDirect

1. Getting access to ICICIDirect.com website during


market session can be frustrating.

2. ICICIDirect brokerage is high and not negotiable.

3. Not all stocks are available under Margin Plus.

SHAREKHAN

Sharekhan is online stock trading company of SSKI


Group , provider of India-based investment banking and
corporate finance service. ShareKhan is one of the largest
stock broking houses in the country.
Sharekhan's equity related services include trade
execution on BSE, NSE, Derivatives, commodities,
depository services, online trading and investment advice.
Trading is available in BSE and NSE. Along with
Sharekhan.com website, ShareKhan has around 250
offices around the country.

Type of Account

Classic Account Trading Terminal

Share Khan Classic account

Allow investor to buy and sell stocks online along with


the following features like multiple watch lists,
Integrated Banking, demat and digital contracts, Real-
time portfolio tracking with price alerts and Instant credit
& transfer.

a. Online trading account for investing in Equities


and Derivatives
b. Free trading through Phone (Dial-n-Trade)

I. Two dedicated numbers for placing your


orders with your cellphone or landline.

II. Automatic funds transfer with phone banking


(for Citibank and HDFC bank customers)

III. Simple and Secure Interactive Voice


Response based system for authentication

IV. get the trusted, professional advice of our


telebrokers

V. After hours order placement facility between


8.00 am and 9.30 am

c. Integration of: Online trading + Bank + Demat


account

d. Instant cash transfer facility against purchase &


sale of shares

e. IPO investments

f. Instant order and trade confirmations by e-mail

g. Single screen interface for cash and derivatives


Speed Trade Treading Terminal

ShareKhan Speed Trade account

: This accounts for active traders who trade


frequently during the day's trading session.
Following are few popular features of Speed Trade
account:

h. Single screen interface for cash and derivatives

i. Real-time streaming quotes with Instant order


Execution & Confirmation

j. Hot keys similar to a traditional broker terminal

k. Alerts and reminders

l. Back-up facility to place trades on Direct Phone


lines
INDIA BULLS

India bulls is India's leading Financial Services and Real


Estate Company having presence over 414 locations in
more than 124 cities. India bulls Financial Services Ltd is
listed on the National Stock Exchange, Bombay Stock
Exchange, Luxembourg Stock Exchange and London
Stock Exchange.

Type of Account

India bulls Equity Trading Account

India bulls Equity Trading Account is standard Online


trading account from India bulls and along with online
trading it also provides priority telephone access that
gives you direct access to your Relationship Manager
and full access to 'India bulls Equity Analysis'.
Application Trading Terminal (Need Installation)

Power India bulls

Power India bulls trading terminal is the most


advanced new generation trading platform with great
speed. This trading terminal is built in JAVA. Power
India bulls is extremely reach in features including
Live Streaming Quotes, Fast Order Entry and
execution, Tic by Tic Live Charts, Technical Analysis,
Live News and Alerts, Extensive Reports for Real-time
Accounting.

Document Required to open Equity Trading Account


with India bulls

1. One passport size photograph.

2. Proof of bank account

3. Copy of PAN card.

4. Identity proof - copy of passport or PAN card or


voter ID or driving license or ration card.

5. Address proof - copy of driving license or passport


or ration card or voter card or telephone bill or
electricity bill or bank statement.
Brokerage and fees :

1. Account opening fees : Rs 1200/- (One time non-


refundable) as below: 250/- Equity Trading Account
opening charge 200/- Demat Account opening charge
750/- Software changes

Advantages of India bulls Equity Trading Account

1. Brokerage is less compare to other online trading


companies.

2. Provide trading terminal 'power bulls', a java based

software. It's very fast in terms of speed and


execution.

Disadvantages of India bulls Equity Trading Account

1. Cannot Apply IPO.

2. Need a HDFC account for instant transfer.


ANALYSIS AND INTERPRETATION
Q1.) Reliance Money is a part of:
Reliance Reliance Reliance Reliance

Capital Telecommunication Energy Industries


150

160 150

140

120

100

80

60

40

20

0
Reliance Capital Reliance Telecommunication Reliance Energy Reliance Industries

Q2.) Reliance Money is owned by:


Anil Dhirubhai Ambani Mukesh Ambani Don’t
Know
150

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

Q4.) Are you aware of Investment options available in the market?

Yes No
110 40

No
27%

Yes
73%

Q5.) Which type of investment would you prefer?


Short term Long term
120 30

Long term
20%

Short term
80%

Q6.) What is the level of your risk tolerance for investment?


Low Risk High Risk Moderate Very High Zero Risk
Risk Risk
70 30 10 20 20

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

High risk/High Low risk/Low


return return
20% 17%

Low risk/Moderate
return
Moderate
30%
risk/Moderate
return
33%

Q8.) In which sector will you prefer to invest your money?


Govt. sector Private sector Both
60 30 60

Both Govt. sector


40% 40%

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

Q10.) What is your purpose of Investment?


Children Retirement Marriage of Future
Education Benefit Children contingencies
25 50 30 45

Children
Future Education
contingencies 17%
30%

Retirement
Benefit
Marriage of
33%
Children
20%
Q11.) Your yearly average investment?

< Rs.50,000 Rs.50,000∼ Rs.2 lac Rs.2 lac∼ Rs.5 lac


100 25 25

Rs.2 lac-Rs.5
lac
17%

Rs.50,000- Rs.2
lac
17%
Rs.50,000
66%

Q12.) Rank the investment options on a scale of 1to 5. (5 is highest)


IPO Mutual Equity ULIP Fixed
Funds Deposits
1 4 3 2 5

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)

Tax Benefit Return Benefit Safety Risk


1 4 3 2

4
4
3.5
3
3
2.5
Ranks

2
2
1.5
1
1
0.5
0
Tax Benefit Return Benefit Safety Risk

Q14.) Do you have a Demat Account, if yes specify the company?


Reliance Money Sharekhan India bulls
50 40 60

Reliance Money
Indiabulls 33%
40%

Sharekhan
27%
Q15.) Which type of company would you prefer to invest in under IPO’s?

Large Cap Mid Cap Small Cap


60 50 40

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%

Q17.) Which type of fund you prefer to invest in?


Equity Balance Growth
50 60 40
Growth
27% Equity
33%

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 differs from company to company. To give an indicative


figure, ICICIDirect.com charges 0.75 per cent for a quarterly volume of
less than Rs 10 lakh (Rs 1 million) and 0.25 per cent for an amount in
excess of Rs 5 crore (Rs 50 million).

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.

While 5paisa.com has the lowest brokerage -- 0.25 per cent -- on


delivery, Angel Broking offers the lowest -- 0.02 per cent -- on intra-day
trading (see A Comparative Look at Online Brokers).

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 instance, Reliance Money charges Rs 500 for delivery-based volumes


up to Rs 10 lakh (Rs 1 million) for two months. If one trades with
5paisa.com for the same volume, the brokerage amount will be Rs 2,500
(at the rate of 0.25 per cent brokerage). So, at this volume, Reliance
Money scores over 5paisa.com. However, the fixed brokerage of Reliance
Money is higher than 5paisa.com's brokerage for investments less than Rs
2 lakh.

For onliners

• Brokerage is a recurring cost. Higher trading volume slabs attract


lower brokerage. You'll also have to pay an annual maintenance
charge.

• Some brokers insist on a minimum transaction volume and charge


their lowest brokerage for it.

• Opt for the same depository and trading body to avoid delays in
settlement of shares and cash.

• Margin trading could attract higher brokerage than regular


transactions.

• Online brokers provide regular updates on market favourites.

• Pick the online broker with the maximum number of collaborating


banks.

• Check out the website's speed and reliability, ease of fund transfer,
and the e-broker's customer service quality.

• The broker's infrastructure should be able to handle large trade


volumes.

Account opening and maintenance costs. In order to trade, an investor


needs to open two accounts with the brokerage firm - a demat account to
keep the shares and a trading account to trade.
If cost is an issue, you may select Almondz, for instance, since it charges
only Rs 400 for opening an account (see A Comparative Look at Online
Brokers), but do not hold a demat account with one company and a
trading account with another since it delays the settlement of shares and
cash.

Another fixed cost is the annual maintenance charge. While some


companies such as Kotak Securities have a high maintenance charge,
Almondz, Religare, Reliance Money, 5paisa.com and India Bulls charge
nothing at all.

Minimum trade requirements. Some online brokers insist on a


minimum transaction volume for which they charge their lowest
brokerage. For instance, ICICIDirect.com has set its minimum transaction
at Rs 500 and charges a brokerage of Rs 25 on it. Geojit Financial
Services has not fixed a minimum transaction amount, but the minimum
brokerage is Rs 20.

Margin trading. This is available in the online domain and involves


paying only a proportion of the trade value upfront. Such trades could
attract higher brokerage than the regular transactions.

Mostly traders, who go for intraday transactions, go for this form of


trading. Investors typically invest for longer periods and margin trading is
not suitable for them as brokers charge huge interest on the value of the
trade that is not paid upfront.
Access to research. Online brokers provide regular updates on market
favourites - stocks to buy, hold or sell - through the Net as well as SMS.
Apart from this, a relationship manager is appointed who works as an
intermediary between the investor and the broker, and plays the helpful
tipper.

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.

Apart from the charges mentioned above, an investor is required to pay


the security transaction tax and service tax (including education cess of 3
per cent), which amount, respectively, to 0.125 per cent of the transaction
value and 12.36 per cent of the brokerage amount. These also raise the
cost of the trade.

Buoyed by a tremendous consumer response and with banking on its


huge roll-out plan, ADA Group's brokerage and distribution arm
Reliance Money expects to break-even by the end of the current
fiscal.
CONCLUSION AND RECOMMENDATION

CONCLUSION

Investing in various types of assets is an interesting activity that attracts


people from all walks of life irrespective of their occupation, economic
status, education and family background. When a person has more money
than he requires for current consumption, he would be coined as a
potential investor. The problem of surplus gives rise to the question of
where to invest.

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.

Moreover growth investors are concerned with growth. The guiding


principle of growth investing is to look for companies that keep
reinvesting into themselves to produce new products and technology.
Even though the stocks might be expensive in the present, growth
investors believe that expanding top and bottom lines will ensure an
investment pays off in the long run.
Lastly the Technical analysis is unlike any other stock picking strategy--it
has its own set of concepts, and it relies on a completely different set
of criteria than any strategy employing fundamental analysis.
However, regardless of its analytical approach, mastering technical
analysis requires discipline and savvy, just like any other strategy.

The Indian Capital Market constitutes of various investment options for


retail investors. Recently there has been a change in the investment
patterns of individual investors. The investors have started of taking risk
in the capital markets. They are after the higher returns on their
investments and thus they look towards broking firms for their
investments.

My summer training at Reliance Money was an eye-openers in to the


working of a Broking firm and what all is online trading about. I got an
insight into the need for investment management and the benefits of
planned investment.
RECOMMENDATION

The company is a leading financial company recently came up


with online share trading products to become number one online
share trading company, company can reach by following
measures:-

• There is potential in the capital market segment.

• People are interested in equity trading.

• Mostly potential lies in employees of BPO and IT sector.

• Due to inaccessible to computer and internet, some people


were reluctant.

• Thrust on promotional activities to make aware of the people


about online trading.

• Flexibility in Brokerage.

• Free demo about the product at the BPO and IT offices.

• Propagating the strict guidelines of SEBI among people.

We suggest following measures, which Reliance Money could take so as


to take on heavy competition from Sharekhan, Kotak Securities,
Indiabulls and 5 Paisa

1. To identify regions where promotions are required. Reliance Money

still lacks visibility.


2. Try to reduce cost, so that benefits can be passed on to customers.

India being a price sensitive market, people at times go for monetary


benefits rather than for long term non- monetary benefits.
3. If charges can’t be reduced because of costs involved, make the

services customized, so that services are provided to only those


customers who are willing to pay the price for services they are
getting and let the other customers enjoy costs benefits without getting
services.
4. Concept of margin funding should be introduced, as more and more

people are asking for it.


BIBLIOGRAPHY
BOOKS:

 Bhalla, V K. Investment management: Security Analysis and

Portfolio Management, 8 th ed; New Delhi, S. Chand, 2001.

 Fischer, Donald E. and Jordan, Ronald J. Security Analysis and

Portfolio Management. 6 th ed; New Delhi, Prentic Hall of India,


1995.

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

SEARCH ENGINE USED:-

http://www.google.com

http://www.yahoo.com
ANNEXURE
Name
Age:
Gender:
Profession:
Address:

Q1.) Reliance Money is a part of:


A1.) Reliance Capital Reliance Telecommunication
Reliance Energy Reliance Industries

Q2.) Reliance Money is owned by:


A2.) Anil Dhirubhai Ambani Mukesh Ambani Don’t Know

Q3.) Reliance Money deals in


A3.) Equity Mutual Funds Life/General Insurance Credit
Cards All

Q4.) Are you aware of Investment options available in the market?


A4.) Yes No

Q5.) Which type of investment would you prefer?


A5.) Short term Long term

Q6.) What is the level of your risk tolerance for investment?


A6.) Low Risk High Risk Moderate Risk Very High
Risk Zero Risk

Q7.) Which Risk/Return pattern do you expect from your investment


fund?
A7.) Low risk/Low return Low risk/Moderate return
Moderate risk/Moderate return High risk/High return

Q8.) In which sector will you prefer to invest your money?


A8.) Govt. sector Private sector Both Other

Q9.) In which investment option will you like to put your money?
A9.) Securities Fixed Deposits Mutual Funds Insurance
Others

Q10.) What is your purpose of Invesatment?


A10.) Children Education Retirement Benefit
Marriage of Children Future contingencies

Q11.) Your yearly average investment?


A11.) < Rs.50,000 Rs.50,000∼ Rs.2 lac Rs.2 lac∼ Rs.5 lac
>Rs.5 lac

Q12.) Rank the investment options on a scale of 1to 5.


A12.) IPO Mutual Funds Equity ULIP Fixed
Deposits

Q13.) W hat factors you consider while investing your money?


A13.) Tax Benefit Return Benefit Safety Risk

Q14.) Do you have a Demat Account, if yes specify the company?


A14.) Reliance Money Sharekhan Indiabulls
(if other, please specify).

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

Q17.) Which type of fund you prefer to invest in?

A17.) Equity Balance Growth