Final project

Systematic Investment plan for Low Income Population
CHAPTER – 1
INTRODUCTION
History of the Indian Mutual Fund Industry
The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank of India.
The history of mutual funds in India can be broadly divided into four distinct phases:
First Phase – 1964-87
An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control
in place of RBI. The first scheme launched by UTI was Unit Scheme in 1964. At the
end of 1988 UTI had Rs.6, 700 crores of assets under management.
Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun
90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989
while GIC had set up its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004
crores.
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Third Phase – 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families. Also, 1993
was the year in which the first Mutual Fund Regulations came into being, under which
all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari
Pioneer (now merged with Franklin Templeton) was the first private sector mutual
fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on
increasing, with many foreign mutual funds setting up funds in India and also the
industry has witnessed several mergers and acquisitions. As at the end of January 2003,
there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of
India with Rs.44, 541 crores of assets under management was way ahead of other mutual
funds.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust
of India with assets under management of Rs.29,835 crores as at the end of January
2003, representing broadly, the assets of US 64 scheme, assured return and certain other
schemes.The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come
under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of
assets under management and with the setting up of a UTI Mutual Fund, conforming to
the SEBI Mutual Fund Regulations, and with recent mergers taking place among
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different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth.
The graph indicates the growth of assets over the years:
Ref- “amfindia.com”
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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:
Advantages of Mutual Funds –
The advantages of investing in a Mutual Fund are:
• Professional Management
• Diversification
• Convenient Administration
• Return Potential
• Low Costs
• Liquidity
• Transparency
• Flexibility
• Choice of schemes
• Tax benefits
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• Well regulated
Risk Return Hierarchy of Different Funds-
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CHAPTER – 2
COMPANY PROFILE
ABOUT RELIANCE ADAG GROUP LIMITED
6

Reliance Anil Dhirubhai Ambani Group (usually referred as Reliance Group and
legally Anil Dhirubhai Ambani Ventures Limited) is an Indian conglomerate,
headquartered in Navi Mumbai, India. The company, which was formed after Dhirubhai
Ambani's business empire was divided up, is headed by his younger son Anil Ambani.
[1]
It has a market capitalisation of 89,000 crore(US$15 billion) and net assets worth
180,000 crore (US$30 billion).[2]
The Reliance Group has a business presence that
extends to over 20,000 towns and 450,000 villages in India, and across the globe. The
shareholder base is over 12 million, among the largest in the world. The group is present
in many sectors including Telecom, Capital, Power, Infrastructure, Entertainment and
Health.
Ambani Ventures Limited)
Type Private
Industry Conglomerate
Predecessor(s) Reliance Commercial Corporation
Founded 1966
Founder(s) Dhirubhai Ambani
Headquarters Dhirubhai Ambani Knowledge City, Navi
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Mumbai, MumbaiMaharastra, India
Key people Anil Ambani
(Chairman)
Products Communications, infrastructure,financial
services,entertainment, power, natural
resource, petrochemical, healthcare, BPO
Revenue US$15.4 billion (2012)
Operating
income
US$2 billion (2012)
Profit US$3.5 billion (2012)
Total assets US$29 billion (2012)
Total equity US$40 billion (2012)
Employees 120,000 (2012)
Subsidiaries Reliance Power, Reliance
Communications, Reliance
Infrastructure, Reliance Capital,Reliance
Entertainment, Reliance Health, Reliance Natural
Resources, Reliance Venture,Reliance
MediaWorks Ltd
Website relianceadagroup.com
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Reliance Capital Ltd is a part of the Reliance - Anil DhirubhaiAmbani (ADA) Group,
and is ranked among the 25 most valuable private companies in India. Reliance Capital
is one of India's leading and fastest growing private sector financial services companies,
and ranks among the top 3 private sector financial services and banking groups, in terms
of net worth. Reliance Capital has interests in asset management and mutual funds, life
and general insurance, private equity and proprietary investments, stock broking,
depository services, distribution of financial products, consumer finance and other
activities in financial services. The Reliance ADA Group is one of India's top 2 business
houses, and has a market capitalization of over Rs.2,90,000 crore (US$ 75 billion), net
worth in excess of Rs.55,000 crore (US$ 14 billion), cash flows of Rs. 11,000 crore
(US$ 2.8 billion) and net profit of Rs. 7,700 crore (US$ 1.9 billion).
Reliance Money-
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 ADA Group.
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About Reliance Money in brief
Reliance Money is a part of the Reliance Anil DhirubhaiAmbani Group and is
promoted by Reliance capital. The fastest growing private sector financial services
company in India ranked amongst the 3 private sector financial companies in terms of
net worth. Reliance Money is a comprehensive financial solution provider that enables
one to carry out trading and investment activities in a secure, cost-effective and
convenient manner. Through Reliance Money, one can invest in a wide range of asset
classes from Equity, Equity and Commodity Derivatives, Mutual Funds, Insurance
products, IPO’s to availing services of Money transfer and Money changing.
Reliance Money offers the convenience of on-line and off-line transactions through a
variety of means, including its, portal, call & Transact, Transaction Kiosks and at its
network of affiliates.
Some key steps of the company are…
“Success is a journey, not destination” if we look for examples to
prove this quote then we can find many but there is none like that of Reliance Money.
This company is today known as the largest financial service provider of India.
Success sutras of Reliance Money-
The success story of the company is driven by 9 success sutras adopted by in namely
Trust, Integrity, Dedication, commitment, Enterprise, Hard work, Home work, Team
work play , Learning and Innovation, Empathy and Humility and last but not least is it’s
Network.
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Mission statement:
Mission of the company is to be a leading and preferred service provider to the
customers, and aims to achieve this leadership position by building an innovative,
enterprising and technology driven organization which will set the highest standards of
service and business ethics.
Vision of Reliance Money:
To achieve and in market leadership Reliance Money aimed for complete customer
satisfaction, by combining its human and technological resources, to provide world class
quality services. In the process Reliance Money strived to meet and exceed customer’s
satisfaction and set industry standards.
ORGANIZATION HIERARCHY
11
RELIANCE MONEY
(Head Office Mumbai)
(
BRANCH OFFICE
Cluster Head
Business Development
Executives
Centre Manager
Executives
Sales Promoters

Reliance Mutual Fund
Reliance mutual fund (‘RMF”/’Mutual Fund’) is one of India’s leading Mutual
Funds, with average Asset Under Management (AAUM) of Rs. 90,636 Crores and an
investor count of over 58.42 and 64.53 Lakh folios.(AAUM and investor count as of
Oct to Dec ’12). Source http://www.amfiindia.com/
Reliance Mutual Fund a part of Reliance Group, is one of the fastest growing mutual
fund in India. RMF offer a investors a well-rounded portfolio of products to meet
varying investors requirements and has presents in 179 cities across the country.
Reliance Mutual funds constantly endeavors to launch innovative product and
customer service initiatives to increase value to investors. Reliance Capital Assets
Management Limited(‘RCAM’) is the manager of Reliance Mutual Fund RCAM is
subsidiary of Reliance Capital Limited (RCL). Presently, RCL holds 65.23% of its
total issued and paid up equity share capital and the balance of its issued and paid
up equity share capital is held by other shareholder which include Nippon Life
Insurance Company(‘NIL’), holding 26% of RCAM’s total issued and paid up equity
share capital. NLI acquired the said 26 % share holding in RCAM on august 17
2012.
Reliance Capital Ltd. Is one of the 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 Ltd. has
interest in asset management, life and general insurance , private equity and
proprietary investments, stock broking and other financial services.
Sponsor Reliance Capital Limited
Trustee Reliance Capital Trustee Co. Limited
Investment Manager
/ AMC
Reliance Capital Assets Management Limited
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Statutory Details The Sponsors, the Trustee and the investment Manager are
incorporated under the Companies Act 1956.
Reliance Life Insurance:-
Few men in history have made as dramatic a contribution to their country’s
economic
fortunes as did the founder of Reliance, Shri. Dhirubhai Ambani. Fewer still have
left
behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai. The corporate visionary, the unmatched strategist, the proud
patriot, the leader of men, the architect of india’s capital markets, the champion of
shareholder interest.
But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth
creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest
private sector enterprises.
When Dhirubhai embarked on his first business venture, he had a speed capital of
barely U$$ 300(around 14,000). Over the next three and a half decades, he converted
this fledgling enterprises into a 60,000 crore colossus- an achievement which earned
Reliance a place on the global Fortune 500 list, the first ever Indian private company
to do so.
Dhirubhai is widely regarded as the father of India’s capital market. In 1977, when
reliance textile industries limited first went public, the Indian stock market was place
patronized by a small club of elite investor which dabbled in a handful of stocks.
Undaunted, Dhirubhia managed to convince a large number of first-time retail
investor to participate in the unfolding Reliance story and put their hard-earned
money in the Reliance Textile IPO, promising them, in exchange for their trust ,
substantial return on their investment. It was to be start of one of great stories of
mutual respect and reciprocal gain in the Indian market.
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Under Dhirubhai’s extraordinary vision and relationship, Reliance scripted one of the
greatest stories in the corporate history anywhere in the world, and went on to
became India’s largest private sector enterprises.
Through out this amazing journey, Dhirubhai always kept the interest of the ordinary
Shareholder uppermost in the mind, in the process making millionaires out of many
of the Reliance stock, and creating one of the world’s largest shareholder family.
Reliance Commercial Finance
The Reliance Group is among India’s top three private sector business houses on all
major financial parameter, with assets in excess of Rs. 180,000 crore, and net worth
to the tune of Rs. 89,000 crore.
Across different companies, the group has a customer base of over 100 million, the
largest in India, and a shareholder base of over 12 million, among the largest in the
world.
Through its product and services, the Reliance Group touches the life of 1 in 10
Indians every single day. It has business presence that extends to over 20000 towns
and 4.5 lakhs villages in India , and 5 continents across the world.
The interest of the Group range from communication (Reliance Communication) and
financial services (Reliance Capital Ltd), to generation, transmission and distribution
of power(Reliance Energy), infrastructure and entertainment.
Reliance Commercial Finance is a member of the Reliance Capital family that
provides an exhausted suite of financial solution. With operational presence across
66 location in India it proudly claims to be the fastest growing non-banking financial
companies in India.
VISION:
To be the preferred and most profitable provider of assets based finance by 2013.
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MISSION:
To benefit the share holders by
Providing need based loan solution that help in creating infrastructure and product
assets.
Maintaining high portfolio quality and profitability.
Maintaining the high standards on values and ethics.
Reliance Capital Ltd
Reliance Capital is one of India’s leading private sector financial services, companies
and ranks among the top 4 private sector financial services and banking groups, in
terms of net worth.
Reliance Capital has interest in assets management and mutual funds; life and
general
Insurance; commercial finance; equity and commodities broking; investment
banking; wealth management services; distribution of financial product; exchanges;
private equity; asset reconstruction; proprietary investment and other activities in the
financial services.
Reliance Securities
Reliance Securities Limited is a Reliance Capital Company and a part of the
Reliance
Group.
Reliance Securities endeavors to change the way investor transact in equities markets
and avails services. It provides customer to access the Equity, Derivative, Mutual
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Funds & IPOs. It also offers secured online share trading platform and investment
activities in secure, cost effective and convenience of trading offline through variety
of means, including Call & Trade, Branch dealing Desk and its network of affiliates.
Reliance Securities has a pan India presence at more than 1,700 location.
Reliance Capital is the one of India’s leading and fastest growing private sector
financial services companies and rang among the top 3 private financial services and
banking group, in terms of net worth.
Awards & Achievements
• ‘Most Admire Service Provider in Financial Sector’ by IPE BFSI, 2012.
• ‘India E-Retail Awards for Best Customer Experience Award’ by Franchise
India,
2012
• ‘My FM Start of the Industry 2012’ for excellence in online Demat (Broking
Category
• Reliance Securities Limited is now ISO 9001:2008 certified for online trading
platform
• ‘Brand Leadership Legacy Award’ at the Asian Leadership Award- Dubai, 2011
• ‘My FM Stars of the Industry 2011’ for excellence in Online Demat / Broking
• ‘Largest E-Broking House 2010’ by Dun & Bradstreet
• ‘Largest E-Broking House & Best Equity Broking House for the year 2009’ by
Dun & Bradstreet
• ‘Best in category Services Franchise’ at the 6th
International Franchise & Retail
show 2008
• ‘ Best E-Brokerage House 2008’(runner’s up) by Outlook Money NDTV Profit
Awards
• ‘Debutant Franchisor of the Year’ a the 5th
International Franchisee & Retail
Show 2007
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• Reliance Securities has been rated no. 1 by Starcom Worldwide for online
security and cost effectiveness in 2007
OUR MANAGEMENT TEAM
Reliance Securities is lead by a team of distinguished individual dedicated towards
scaling the
The company to greater heights through innovative products and services that create
value
for our customer & stake holder.
Our management Team
Vikrant Gugnani – Executive director
Sanjay Wadhwa – Chief Financial Officer
Ganesh Pai – Head Compliance
Hitesh Agrwal – Head Research
PRESENCE & REACH
Corporate Office
Reliance Securities Ltd
11th
Floor, R-Tech Park, Nirlon Compound,
Western Express Highway, Land Mark – Near Hub,
Behind Oracle Building
Goregaon(East), Mumbai – 400063
Maharashtra
Board Line – 022 3320 121
Fax – 022 3320 1555
Contact Center:
For any queries / request, write to us at:
customer.support@resec.co.on
write to us at:
grievance@rsec.co.in for any grievances/complaints
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About Us- Reliance General Insurance:
Reliance General Insurance is one of the leading private general insurance
companies of India.We offer an exhausted and customized basket of insurance
product that include motor, health,travel, student travel insurance etc with over 94
customized insurance product catering to the corporate, SME and individual
customer. In our endeavor to delight our customer, we strive to come up with
innovative product like India’s first
Over-The-Counter health & home insurance policies.
To pursue our belief in providing easy access to our customer and distributors, we
have 152 offices spread across 119 cities in 24 states. Apart from this, we also
provide easy access to our customer with our dedicated 24x7 call center, a
transactional website, tie-ups through banks,channel partners and broker.
VISION:
To be an insure of World Standard and the most preferred choice for clientele at the
domestic and global level.
MISSION:
Our mission is to keep the customer satisfaction as focal point of all our operations,
adopt the best international practices in underwriting, claims and customer service,
be the most innovative in product development, establish presence all over India,
ensure sustained value addition to all stake holder and to uphold Corporate Value &
Corporate Governance.
GOALS
. Make affordable insurance accessible to all
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. Keep customer as focal point for all operations
. Product policy holders interests
. Adopt best international practices in claims, underwriting and policy servicing
. Be the most innovative in product development
. Establish Pan India presence
PERFORMANCE OF RELIANCE
WHERE RELIANCE STAND IN THE MARKET?
RELIANCE is a legendary name in financial services, Reliance credit is defined by its
mission to succeed, passion for professionalism, excellent work ethics and customer
centric values.
Today Reliance is well known as a premier financial services enterprise, offering a broad
spectrum of customized services to its clients, both corporate and retail. Services that
RELIANCE constantly upgrade and improve are because of company’s skill in
leveraging technology. Being one of the most techno-savvy organizations around helps
company to deliver even more cost effective financial solutions in the shortest possible
time.
What bears ample testimony to Reliance success is the faith reposed in company by
valued investors and customers, all across the country. Indeed, with Karvy’s wide
network touching every corner of the country, even the most remote investor can easily
access Karvy’s services and benefit from company’s expert advice.
Some key points about RELIANCE :
• Every 50th
Indian is serviced by Reliance
• Every 20th
trade in stock is done by Relaince
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• Indian’s no.1 registrar and transfer agent.
• Every 6th
investor in India invests through Reliance.
• Every 10th
Demat account is held at Reliance
RELIANCE PRODUCT & SERVICES
AN OVERVIEW
SERVICES OF RELIANCE -
• Stock broking
• Demat services
• Investment product distribution
• Investment advisory services
• Corporate finance & Merchant banking
• Insurance Broking services
• Mutual fund services
• IT enabled services
• Registrars & Transfer agents
• Loans
• Reality services
• Portfolio management services
• BPO & KPO services
• Corporate advisor
• Currency derivatives
• Bonds and Deposits
• Depository services
• Commodities
• Investment Banking
• Advisory service
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PRODUCTS
Equity-Reliance Money offers its clients competitively priced Equity broking, PMS and
Portfolio Advisory Services. Trading execution assistance provided to clients.
Mutual Funds- Reliance Money offers dedicated research & expert advice on Mutual
Funds.
Life-Insurance-Clients can choose from different plans of almost all Insurance
Companies where they can invest their money. A team of experts will suggest the best
Insurance scheme which suits the client’s requirement.
General Insurance-Reliance Money assists in areas of Health insurance, Travel
insurance, Home insurance and Motor insurance.
Commodities-Reliance Money is a single platform to trade on both the major
commodity exchanges i.e. NCDEX and MCX. In addition in-house research desk shall
provide research reports on all major commodities which shall enable in getting views
for trading and diversify client’s holdings. Trade Execution assistance is also provided to
clients.
Structured Products, Art Investments-Structured Products is a new class of financial
products for investors apprehensive of increased volatility in stock markets. Specially
designed products could include Equity, Index-linked in nature, Real Estate Funds, Art
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Funds, Overseas Investments and Infrastructure Investments.
Tax Planning-Reliance Money’s wealth
management offerings include tax related services like:Tax Planning & advisory services
and filling Tax returns for individuals.
Real Estate Advisory Services-It providesBroking Model for lease/rent and buy/sell of
property,Property Valuation, Real-estate Consulting Corporate earning model,
etc.Offshore Investments-Reliance Money provides a unique opportunity to invest in
international financial markets through the online platform which includes different
product ranges.
Comprehensive Policy for the entire family!
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COMPETITORS OF KARVY
KOTAK SECURITIES:
Kotak securities ltd is India leading stock broking house with a market share of close to
9% as on 31 marches 2007. Kotak securities ltd has been the largest in IPO distribution.
The company has a full fledged research division involved in macro economic studies
sect oral research and company specific equity research combined with a strong and well
networked sales force which helps deliver current and up to date market information and
news
Kotak securities ltd is also a depository participant with national securities depository
limited and central depository service limited .providing dual benefits services where in
the investor can use the brokerage services of the company for executing the transactions
and the depository service for settling them.
Kotak securities have 813 outlets servicing more than 315000 customers and a coverage
of 277 cities. Kotak securities com the online division of kotak securities limited offers
internet broking services and also online IPO and mutual fund investment
A Kotak security limited manages assets around 2300 crores of assets under
management. The portfolio management service provides top class service catering to
the high end of the market. Portfolio management from kotak securities comes as an
answer to those who would like to grow from exponentially on the crest of the stock
market, with the backing of an expert.
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SHAREKHAN
Sharekhan, the retail broking arm of SSKI group and one of the largest stock broking
house in the country has won the prestigious awaaz consumer vote awards 2005 for the
most preferred stock broking brand in India, in the investment advisors category
Share khan equity related services include trade execution on BSE,NSE derivatives
commodities depository services online trading and investment advice ,.sharekhan online
trading and investment site www.sharekhan.com was launched in 2000 . Sharekhan Bag
round network includes over 250 centers across 123 cities in India and having around
120000 customers and equal number of demat customers.
Sharekhan won the award by vote of customer around the country, as part of India
largest consumer study cover 7000 respondents 21 product and service across 21 major
cities. the study initiated by awaaz India first dedicated consumer channel and member
of the world wide CNBC network and ac Nielsen org marg was aimed at understanding
the brand preference of the consumer and to decipher what are the most important
loyalty criteria for the consumer in each vertical
In order to select the award recipient spontaneous responses rather than prompted
responses were garnered with an intention to glean unbiased preferences.
The reason behind the preferences for brands were unveiled by examines the following:
• Tangible features of product /service
• Softer, intangible features like imagery, equity driving preference
• Tactical measures such as promotional /pricing schemes
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INDIA INFOLINE
The India Infoline group, comprising the holding company, India Infoline Limited and
its wholly-owned subsidiaries, straddle the entire financial services space with offerings
ranging from Equity research, Equities and derivatives trading, Commodities trading,
Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI
bonds and other small savings instruments to loan products and Investment banking.
India Infoline also owns and manages the websites http://www.indiainfoline.com/and
http://www.5paisa.com/
The company has a network of 758 business locations (branches and sub-brokers) spread
across 346 cities and towns. It has more than 800,000 customers
India Infoline Limited is listed on both the leading stock exchanges in India, viz. the
Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a
member of both the exchanges. It is engaged in the businesses of Equities broking,
Wealth Advisory Services and Portfolio Management Services. It offers broking services
in the Cash and Derivatives segments of the NSE as well as the Cash segment of the
BSE. It is registered with NSDL as well as CDSL as a depository participant, providing
a one-stop solution for clients trading in the equities market. It has recently launched its
Investment banking and Institutional Broking business.
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RELIGARE
Religare Enterprises Limited (REL), is one of the leading integrated financial services
groups of India. REL’s businesses are broadly clubbed across three key verticals, the
Retail, Institutional and Wealth spectrums, catering to a diverse and wide base of clients.
REL offers a multitude of investment options and a diverse bouquet of financial services
and has a pan India reach in more than 1550 locations across more than 460 cities and
towns.
As part of its recent initiatives, the group has also started expanding globally and has
acquired London’s oldest brokerage & investment firm, Hichens, Harrison & Co. plc.
Following this acquisition Religare now proposes to operate out of 10 countries. With a
view to expand, diversify and introduce offerings benchmarked against global best
practices, Religare has entered into joint ventures with the global major- Aegon for its
Asset Management and Life Insurance businesses in India.
Religare’s wealth management subsidiary is now rechristened as Religare Macquarie
Wealth Management Limited, following a joint venture with the Australia based
financial services major, Macquarie Bank. Religare has also partnered with Vistaar
Entertainment to launch India’s first Film Fund.
The vision is to build Religare as a globally trusted brand in the financial services
domain and present it as the ‘Investment Gateway of India’. All employees of the group
guided by an experienced and professional management team are committed to
providing financial care, backed by the core values of diligence and transparency.
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INDIABULLS
Indiabulls is India’s leading Financial Services and Real Estate company having over
640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000
customers with its wide range of financial services and products from securities,
derivatives trading, depositary services, research & advisory services, consumer secured
& unsecured credit, loan against shares and mortgage & housing finance. With around
4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized
financial goals. Indiabulls through its group companies has entered Indian Real Estate
business in 2005. It is currently evaluating several large-scale projects worth several
hundred million dollars.
“Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay
Stock Exchange and Luxembourg Stock Exchange. The market capitalization of
Indiabulls is around USD 6,300 million (31st December, 2007). Consolidated net worth
of the group is around USD 905 million (31st December, 2007). Indiabulls and its group
companies have attracted more than USD 800 million of equity capital in Foreign Direct
Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the
largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill
Lynch, Morgan Stanley and Farallon Capital.
Business of the company has grown in leaps and bounds since its inception. Revenue of
the company grew at a CAGR of 159% from FY03 to FY07. During the same period,
profits of the company grew at a CAGR of 184%. Indiabulls became the first company
to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC,
a respected US based investment firm. Indiabulls has demonstrated deep understanding
and commitment to Indian Real Estate market by winning competitive bids for landmark
properties in Mumbai and Delhi.”
Indiabulls Financial Services Ltd
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ANGEL BROKING
The Angel Group of Companies was brought
to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise
capital for his own independent enterprise. However, he recognized the opportunity
offered by the stock market to serve individual investors. Thus India’s first retail-focused
stock-broking house was established in 1987. Under his leadership, Angel became the
first broking house to embrace new technology for faster, more effective and affordable
services to retail investors.
Mr. Thakkar is valued for his understanding of the economy and the stock-market. The
print and electronic media often seek his views on the market trend as well as investment
strategies.
Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel
has emerged as one of the most respected Stock-Broking and Wealth Management
Companies in India. With its unique retail-focused stock trading business model, Angel
is committed to providing ‘Real Value for Money’ to all its clients. The Angel Group is
a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and
the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also
registered as a Depository Participant with CDSL.
28

CHAPTER – III
SYSTEMETIC INVESTMENT PLAN (S.I.P.)
SIP is a method of investing a fixed sum, regularly, in a mutual fund. It is very similar to
regular saving schemes like a recurring deposit.
An SIP allows you to buy units on a given date each month, so that you can implement
an investment / saving plan for yourself. Once you have decided on the amount you want
to invest every month and the mutual fund scheme in which you want to invest, you can
either give post-dated cheques or ECS instruction, and the investment will be made
regularly. SIPs generally start at minimum amounts of Rs 1,000 per month and the upper
limit for using an ECS is Rs 25000 per instruction. Therefore, if you wish to invest Rs
100,000 per month, you may need to do it on 4 different dates.
HOW TO INVEST IN MUTUAL FUND
There are two ways in which you can invest in a mutual fund.
1. A one-time outright payment (LUMPSUM)
If you invest directly in the fund, you just hand over the cheque 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 one factor which determine how many units you get.
that is NAV.
29

NAV (Net Asset Value)
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 50.
So you will get 200 units (Rs 10000 / 50).
2. Periodic investments (SIP)
This is referred to as a SIP. 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.
Here are some Facts on the SIP
1. Is there a load?
An exit load is a fee you pay the fund when you sell the units, the funds never charged
an entry load on SIPs. An exit load is charged if you stop the SIP mid-way.
Which is 1%. Let's say you have a one-year SIP but discontinue after five months, and
then an exit load will be levied. These conditions will wary between mutual funds.
2. What is the minimum investment?
30

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 their own minimum
amount. Some may keep it at least Rs 500 per month; others may keep it as Rs 1,000.
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 [ECS] 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
31

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 10%.
Let's say you invest through a SIP for 12 months: January to December 2005. Now, in
February 2006, 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 2005
and the units you bought with that money, will be regarded as the units you sell in
February 2006. For tax purposes, the units that you sell first will be considered as the
first units bought.
8. How will an SIP help?
32

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.
7 GOOD REASONS TO INVEST IN SYSTEMATIC INVESTMENT
PLAN
Power of compounding: The power of compounding underlines the essence of making
money work if only invested at an early age. The longer one delays in investing, the
greater the financial burden to meet desired goals. Saving a small sum of money
regularly at an early age makes money work with greater power of compounding with
significant impact on wealth accumulation.
Convenience: SIP can be operated by simply providing post dated cheques with the
completed enrolment form or give ECS instructions. The cheques can be banked on the
specified dates and the units credited into the investor's account. The SIP facility is
available in the Principal Income Fund, Monthly Income Plan, Child Benefit Fund,
Balanced Fund, Index Fund, Growth Fund, Equity fund and Tax Savings Fund.
33

It’s An Expert’s Field: The Fund Manager who are the expert in management of the
fund and have experience of 8-10 years manages Funds.
Putting Eggs In Different Baskets: The investments are done in diversified sectors,
which reduce the overall impact on the returns from a portfolio on account of a loss in
particular, company or sector.
It’s All Transparent And Well Regulated: The Mutual Fund Industry is well regulated
both by SEBI and AMFI.
Rupee Cost Averaging: Timing the market consistency is a difficult task. Rupee cost
averaging is an automatic market timing mechanism that eliminates the need to time
one's investments. Here one need not worry about where share prices or interest are
headed as investment of a regular sum is done at regular intervals; with fewer units
being bought in a declining market and more units in a rising market. Although SIP does
not guarantee profit, it can go a long way in minimizing the effects of investing in
volatile markets.
Rupee Cost Averaging is an effective market-timer mechanism that eliminates the need
to time the markets. All one has to do is to invest a fixed, pre-decided amount of money
on a regular basis over a long period of time. Since the amount invested per month is
constant, one buys more units when the price is low and fewer units when the price
is high. As a result the average unit cost will always be less than the average sale price
per unit, irrespective of the market rising, falling or fluctuating.
Let's take an example of Mr. X, wherein he started investing Rs. 4,000 every month in
the Maximiser Fund of the Lifetime Super Plan.
34

The table related to this is given in next page:
Period
Invested
Premium (Rs.)
NAV of Maximiser Fund
(Rs. Per unit)
Units
allocated
7th Apr
'03
4,000 11.34 352.73
7th May
'03
4,000 11.01 363.31
9th Jun
'03
4,000 12.05 331.95
7th Jul
'03
4,000 13.13 304.65
7th Aug
'03
4,000 13.67 292.61
8th Set
'03
4,000 15.81 253.00
7th Oct
'03
4,000 16.78 238.38
7th Nov
'03
4,000 18.28 218.82
8th Dec
'03
4,000 18.71 213.79
7th Jan
'04
4,000 21.48 186.22
S9th Feb
'04
4,000 21.49 186.13
8th Mar
'04
4,000 21.98 181.98
Total 48,000
35

Actual Average NAV = (11.34 + 11.01 + 12.05 + 13.13 + 13.67 + 15.81 + 16.78 + 18.28
+ 18.71 + 21.48 + 21.49 + 21.77) / 12 = Rs.16.29.
NAV for Mr. X = (4,000 * 12) / (352.73 + 363.31 + 331.95 + 304.65 + 292.61 + 253.00
+ 238.38 + 218.82 + 213.79 + 186.22 + 186.13 + 183.74) = Rs.15.36
36

Based on the historical analysis for BSE Sensex for last ten years (1-Jan-1994 to 1-Jan-
2004) we find that if an individual had invested Rs. 1000 ever year (SIP) he would have
earned a return of 9% vis-à-vis 5% earned by an individual who had invested Rs. 1000 at
the beginning of 10 year period. Similarly over a five-year period (1-Jan-1994 to 1-Jan-
1999) SIP investment return would have been 16.52% compared to 14.09% for a one-
time investment at the beginning of the period.
Thus Rupee Cost Averaging smoothens out the market ups and downs and reduces
the risk of investing in volatile markets. However, rupee cost averaging does not
guarantee a profit, as this depends on the performance of the market.
Does Not Strain Our Day-to-Day Finances: It allows us to invest very small amounts
(Rs. 500 – Rs. 1000). As against the larger one time investment, which makes easier to
the investor?
Top 5 mutual fund in various categories
Equity Diversified Rating AUM (Rs. cr.)
Mar 11
NAV
(Rs./Unit)
1yr 2yr 3yr
Birla SL India GenNext (G) 84.38 26.28 16.2 30.0 19.9
HDFC MidCap Opportunities
(G)
1,152.26 16.53 13.4 38.1 24.8
Birla SL Dividend Yield (G) 771.61 86.80 6.9 31.4 27.9
SBI Magnum Emerging Busi
(G)
292.22 43.88 17.3 35.6 17.9
DSP-BR Micro Cap Fund - RP
(G)
438.42 15.66 -2.4 36.1 20.9
Equity Tax Saving Rating AUM (Rs. cr.)
Mar 11
NAV
(Rs./Unit)
1yr 2yr 3yr
Axis Tax Saver Fund (G) 73.28 12.92 11.9 -- --
37

ICICI Pru Tax Plan (G) 1,251.56 142.85 6.1 31.5 18.4
Religare Tax Plan (G) 102.10 18.15 7.7 27.5 21.7
HDFC Tax Saver (G) 2,823.02 237.70 7.5 29.0 22.1
Can Robeco Eqty TaxSaver
(G)
243.82 26.52 5.3 26.2 24.3
Balanced Rating AUM (Rs. cr.)
Mar 11
NAV
(Rs./Unit)
1yr 2yr 3yr
HDFC Childrens Gift (Inv) 265.89 45.03 19.6 31.5 21.7
HDFC Balanced Fund (G) 238.78 58.17 13.2 28.7 22.3
HDFC Prudence Fund (G) 5,808.18 218.66 9.9 29.1 24.2
ICICI Pru Balanced Fund (G) 263.95 48.20 12.6 21.0 13.2
ICICI Pru E & D-Volatility Adv.
(G)
189.33 14.49 10.8 18.8 13.4
Monthly Income Plan Rating AUM (Rs.
cr.)
Mar 11
NAV
(Rs./Unit)
1yr 2yr 3yr
HDFC MIP - LTP (G) 10,099.87 23.49 7.4 12.0 14.6
Can Robeco MIP (G) 363.75 30.11 6.4 9.0 12.2
Reliance MIP (G) 8,393.45 22.04 5.8 11.1 15.4
ICICI Pru MIP (G) 1,003.34 26.34 6.7 7.5 9.6
Birla SL MIP II-Savings 5 (G) 818.38 17.94 6.7 6.6 11.0
Money Market Rating AUM (Rs.
cr.)
Mar 11
NAV
(Rs./Unit)
1yr 2yr 3yr
SBI Magnum Cash-Liq Float
-G
92.44 17.33 7.9 6.0 6.6
IDFC Liquid Fund (G) 966.28 1,416.38 7.8 6.2 6.1
JM High Liquidity (G) 70.09 27.39 7.7 6.0 6.6
HDFC Cash Mgmt - SP (G) 3,977.71 20.97 7.5 6.0 6.6
38

Reliance Money Mgr-RP (G) 1,912.59 1,355.18 7.4 6.1 6.7
Debt - Short Term Rating AUM (Rs.
cr.)
Mar 11
NAV
(Rs./Unit)
1yr 2yr 3yr
Templeton (I) ST Income (G) 3,727.50 2,004.34 6.4 7.2 9.5
Birla SL Short Term Opp-RP
(G)
79.76 15.70 8.3 7.1 7.8
Taurus Short Term Income (G) 54.63 1,715.60 8.5 5.9 4.6
UTI Short Term Income - RP
(G)
310.01 17.17 7.6 6.6 8.1
IDFC Ultra Short Term Fund
(G)
623.57 13.85 8.3 6.3 6.1
Debt - Long Term Rating AUM (Rs.
cr.)
Mar 11
NAV
(Rs./Unit)
1yr 2yr 3yr
UTI Bond Fund (G) 382.79 29.04 6.9 6.0 7.7
Templeton India IBA (G) 70.78 33.08 6.8 5.9 7.5
ICICI Pru Flexi Inc -Prem (G) 10,142.62 187.28 7.8 6.4 7.0
Reliance Medium Term Fund
(G)
1,955.52 20.84 7.7 6.3 6.9
Birla Sun Life GSec - LTF (G) 518.05 28.77 5.1 8.3 12.8
Debt - Floating Rate Rating AUM (Rs.
cr.)
Mar 11
NAV
(Rs./Unit)
1yr 2yr 3yr
Can Robeco Float Rate-STP
(G)
234.18 15.60 8.2 6.4 7.1
HDFC Float Rate Inc-LTP (G) 1,510.78 17.33 7.8 6.8 7.9
Birla SL FRF - LTP - RP (G) 162.00 17.24 7.7 7.4 7.8
39

Tata Floater Fund (G) 5,898.74 15.02 7.9 6.4 7.0
Reliance Floating Rate (G) 461.74 15.83 7.7 6.2 6.9
Ref- http://www.moneycontrol.com/mutual-funds/best-funds/annualised-returns
40

RISKS IN SYSTEMATIC INVESTMENT PLAN
In this competitive world the risk is common in almost all the business. The basic
objective of a mutual fund is to provide a diversified portfolio so as to reduce the risk in
investments at a low cost. Investors who take up mutual fund route for investments
believe that their risk is minimized at low costs, and they get an optimum portfolio of
securities that match their risk appetite. A mutual fund investor is exposed to a variety of
risks. Among these, there are four major ones:
Market Risk:
It refers to the extent to which fluctuations in the return are caused by broad market
factors.
Regulatory Risk:
It is the result of unexpected changes in the regulation.
Industry Risk:
The returns of a particular scheme may be adversely affected by the poor performance of
a particular sector.
Company Risk:
If a particular fund scheme has made substantial investments in the stocks of a particular
company; risks may arise as a result of below par performance of that particular
company.
41

CHAPTER – IV
LITERATURE REVIEW
Mutual fund industry must attract low-income groups: RBI Dy
Gov Chakrabarty
Mumbai: The Reserve Bank of India (RBI) wants the mutual fund industry to introduce
innovative schemes for attracting savings of low-income groups, particularly in the rural
areas of the country, Deputy Governor of RBI KC Chakrabarty said.
“Role of mutual funds in promoting saving at this point continues to be insignificant in
India. Attracting low-income groups is the only way to ensure participation of all
categories (of investors) in the financial market as mutual funds clearly have a role in
financial development,” Chakrabarty said while speaking at the 9th Mutual Fund
Summit of Confederation of Indian Industry (CII) earlier Wednesday.
Mutual funds have played a crucial role in broadening the money market and to a certain
extent the Government Securities (GILT) market as well, Chakrabarty said. GILT funds
have however, recorded only a moderate growth, he added.
The relationship between banks and mutual funds has also been of concern to the RBI,
he said. To address the issue, the central bank on May 3 had decided that banks’
investment in debt oriented mutual funds be capped at 10% of their net worth.
REF- http://banking.contify.com/story/mf-industry-must-attract-low-income-groups-rbi-dy-
govChakrabarty
42

CHAPTER – V
RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
The purpose of choosing this project is to know:
 The main objective of this project is concerned with getting the
opinion of people regarding mutual funds.
 Better option for entry into a Mutual Fund.
a) Lump sum
b) SIP
 People Reaction towards Mutual Fund Industry.
 Investors Delight when investment is through SIP.
 Procedure for investment in SIP.
 Can lower income Strata of our society be benefited with the
Systematic Investment Plans.
43

SCOPE OF THE STUDY
Since the summer internship training is done in Varanasi, so the universe taken is from
Varanasi only.
This project will help existing/prospective investor to understand what are the various
mode of investment in Mutual Fund and why Systematic Investment Plan gives better
returns than Lump sum. So that investors can do better use of their hard earned money to
earn more profit.
TYPES OF DATA
There are two types of data:
1. Primary Data
2. Secondary Data
Primary Data is that data which is collected by the researcher as per his/her needs.
Secondary Data is that data which is collected through references as websites, journals,
books, newspapers, magazines etc.
SOURCES OF DATA COLLECTION
The data for research is collected in two ways: -
• Primary source
• Secondary source
Primary Data is collected through interviewing the investors directly.
Secondary data which is used just for reference is collected through magazines and
Fact sheets of the Mutual Fund Companies.
44

RESEARCH DESIGN
This research is Descriptive and conclusive in nature because it aims to collect the data
about the behavior of investors in which way they invest in Mutual Funds. The research
approach used is survey based and the analysis is largely based on the primary data.
RESEARCH INSTRUMENT
Interview.
CONTACT METHOD
Personal interview
RESEARCH APPROACH
Any methodology includes the overall research design, the sampling procedure and data
collection method. The methodology adopted by me for purpose of finding the
investment behavior of investors was DIRECT IINTERVIEW METHOD.
RESEARCH TYPE
Conclusive and descriptive approach has been adopted in the study. As here the topic of
research problem has been explored so that hidden facts can come into the light and then
the final conclusion is given.
POPULATION
Varanasi City
45

SAMPLE SIZE
A sample size of 50 investors was chosen to meet the earlier mentioned objectives. The
selection of sample was based on the following criteria: -
• People belonging to lower income group.
Demographic Profile Of Target Respondents
 Age - 18 years to 35 years
 Income - People who are free from Tax (as in Tax Slab)
(General – Rs. 1, 80,000
Women - Rs.1, 90,000
Senior Citizen - Rs. 2, 50,000)
These Respondents comes under lower Income Populations as per my
objectives and analysis.
Ref - http://financeminister.in/latest-india-income-tax-slabs
46

CHAPTER – VI
ANALYSIS & FINDINGS
ANALYSIS
The analysis is done on the basis of the response of respondents, which is collected
through the interview
Q 1: You Gender?
Gender Value (in %)
Male 50
Female 50
Q 2: Marital Status?
Gender Value (in %)
Married 75
Single 25
47

Q 3: Have you invested /are you interested to invest in Mutual Funds?
Ans:
Replies Values (in %)
Yes 27
No 26
Depends on Market Situations 7
May be in Future 40
People Interest in Investment
May be in Future
40%
YES
27%
NO
26%
Depends on Market
7%
YES
NO
Depends on
Market
May be in Future
48

Interpretation: From above pie chart, I have analysed that in the among the Small
Income Population, there are many who are interested in Investment. But the main
noticable point are 40% of the population I interviewed have the possibilities to invest in
Future.
Q 4: What is the most important reason for not investing in Mutual Funds?
Ans:
Reason on Not Investing in MF Values (in %)
High Risk 14
No knowledge 50
Don’t Believe in Private Companies 18
Had suffered loss earlier 18
49

Reason on Not Investing in MF
Had suffered loss
earlier
18%
High Risk
14%
No knowledge
50%
Don’t Believe in
Private Companies
18%
High Risk
No knowledge
Don’t Believe in
Private Companies
Had suffered loss
earlier
Interpretation: The above pie chart depicts that 50% of the Population I interviewed,
have no knowledge about the Mutual Fund so this is the main reason of people not
interested much in investing in Mutual Funds. 18% are those Traditional people who
thinks, relying on Public sector company are far better than others private sector.18% of
the population have suffered loss earlier and thus have no capacity to take further risk.
Q 5: What attracts you more Mutual Fund as a lump sum or SIP?
Ans:
Lump Sum 16
SIP 84
50

Type of Mutualfund attracting Small Income
People
Lump Sum
16%
SIP
84%
Lump Sum
SIP
Interpretation: We can interpret that the Small section of society are Bigger in number,
and through the Graph can be seen that 84% of the population I interviewed are more
interested towards SIP. Thus there is a huge Market of SIP’s in Varanasi City.
Q 6: Of what amount of monthly installment you are willing to start a SIP?
Ans:
Reply Values (In %)
Rs.500 64
Rs.1000 26
Rs. > 1000 10
51

Min. Monthly Amount that can be Paid by
Small Income People
10
64
26
0
10
20
30
40
50
60
70
Rs. 500 Rs. 1000 Rs. > 1000
Rs. 500
Rs. 1000
Rs. > 1000
Interpretation: Middle Section of the society can easily give 500 Rs. Per month from
their pocket and don’t think as a burden.. However there are few more people who think
investing in Mutual Funds are far more Lucratice, thus can invest Rs. 1000 or more in a
month.
Q 7: According to you which are the most suitable stage to invest in mutual funds?
Ans:
Young unmarried stage 24
Young Married with children stage 44
Married with older children stage 20
Pre retirement stage 12
52

Interpretation: It can be interpreted that, People who are married with young children,
invests much in Mutual Funds and othere Investments.
Q 8: What is time duration of investment?
Ans.
Time Duration Values (in %)
Less than equal to 5 years 24
Values (in %)
Young unmarried
stage
24%
Young Married with
children stage
44%
Married with older
children stage
20%
Pre retirement stage
12%
Young unmarried stage Young Married with children stage
Married with older children stage Pre retirement stage
53

24
62
14
0
5
10
15
20
25
30
35
40
Investmentin%
Less than equal to 5
years
years
years
Time Duration
Interpretation: As we all know, Investing money Via SIP gives good return only if we
invest for a long period of time. Thus, for more profitable return and for future
complexities, People generally invest for minimum 3 years.
Q 9: Are you satisfied with the facilities provided by RELIANCE?
Ans:
Satisfaction Level with RELANCE Responses of Investors
Yes 65%
No 35%
54

65
35
SatisfactionLevel with Facilites provided by
Reliance
Yes
No
Interpretation: Reliance are providing better financial advices and services to their
existing clients. However as the interest in Mutual Fund in Small sectors are gradually
rising, Reliance should take consider of these upcoming section of society too.
55

FINDINGS
The analysis is done based on the interview and we got following points:
 Lower Income populations are now more attracted toward the SIP.
 They can bear some risk for getting profits higher than the Bank Interests and
Fixed Deposits.
 However, they need some genuine agent on whom they can rely on as lack of
knowledge exists in these populations.
 Since maximum of the people are investing minimum for tenure of 3 years. So
there are chances that the Market will go up in next 3 years and people may get
good returns against investment.
 People can easily give 500 Rs SIP initially, and if they get better returns in
future, there might be possibilities that they will invest further in it.
 Small section of the society is large in numbers. So if small amount are invested
by them, Company gets much money in Bulk to invests and provide better
returns.
 Out of 50 people on whom I interviewed, 32 people started the investment.
 However, there exist fear in every person, that Private companies are non reliable
and can run away anytime. So people shift them selves to invest in Public Sectors
like LIC and Banks.
56

CHAPTER – VII
CONCLUSION
After Completing Summer Internship in Reliance Securities Limited, I would like to
conclude my training and report as-
My Internship was of Hardcore Product Selling. I was placed in Marketing Department
with Financial Advisors. Every week there was a SIP Login day, on which we have to
file all the products we have sold to the customers. I was under my Branch Head. But the
task was supervised by the Financial Advisor, Mr. Rajesh Pandey
As a summer Trainee, I didn’t get any targets to achieve, but the pressure continues
reaching us through our supervisors. In initial stages of my training, I was told to read
and understand all the basics and keywords of Mutual fund and Financial Industry. And
from the next week I was supposed to deal clients. Initially I felt trouble dealing with the
clients as I was having fear of knowing less then the customers. The cross question
asked by the customer’s created trouble for me. However, I asked my supervisor for
giving me the ideas for responding to customers at there questions. This gradually
worked for me.
It was overall a strong and positive Learning and business experience for me. When I
went to some clients who were not very good in their financial standings, they asked
some actual and reliable platform to invest so as to protect their upcoming future. This
gave me a way to think and lead my project into this way. After meeting few more
customers of the same category, I got an idea of their thoughts and the need. They
actually wants to invest in these Mutual Fund Industries, but the problems like, Lack of
57

knowledge, Non Reliable Agents, Non Reliable Private companies are making them to
divert their mind to opt for Banks and Recurring Deposits.
Thus I think, there are lots of opportunities in Lower Income Strata of the Society, which
are hidden till now. And Reliance and all the Mutual Fund Companies should take
initiatives to help them and make them possible to build there own future they dreamt of.
Other Conclusion as per the Survey are-
• Lower Income Population is attracted toward SIP that also, mostly of monthly
amount to Rs. 500.
• Mutual Funds have given a new direction to the flow of personal saving and
enable small and medium investors in remote rural and semi urban areas to reap
the benefits of the stock market investment. Indian Mutual Funds are thus
playing a very important developmental role in allocation of scares resources in
the emerging economy.
• SIP gives far better results than investing in Lump sum.
• Reliance is not able to provide sufficient services to the investors due to
unawareness among advisors regarding services.
• The awareness level of investor is low in advisors are interested in dealing in
mutual fund.
• Small section is ready to give try in investing in Mutual Funds starting in a small
amount of Rs. 500 a month.
58

Swot Analysis Of Reliance Capital Limited
Strength :
 A well-known name in Financial
Companies.
 Wide Experience in this field.
 Dedicated Employees.
 Tie up with many financial
institutions.
 Ever growing distribution network.
 Good Infrastructure.
 Experienced Fund Managers.
 Easy access to the branch.
Weakness :
 No access to rural market.
 No direct link between investors &
the AMC.
Opportunity :
 Positive outlook of people towards
mutual funds.
 Untapped market.
Threat :
 Highly volatile and uncertain
market conditions.
 Large number of financial giants
present in this field.
.
59

CHAPTER – VIII
RECOMMENDATION AND SUGGESTIONS:
Though the Reliance Securities Limited have a very good ascribed plan with exclusive
band of opportunities but as nothing is free from the hurdles therefore there are few
shortcomings which I felt makes Reliance fail to achieve its target.
.
• There is high potential market for Mutual Fund Advisors in Varanasi city, but this
market needs to be explored as investors are still hesitated to invest their money in
Mutual Funds.
• In Varanasi Lower Income Investors have inadequate knowledge about Mutual
Funds, So proper Marketing of various schemes is required, company should
arranges more and more seminars on Mutual Funds.
• Awareness of MF services among the Lower Income Investors are very low so
Asset Management company needs proper marketing of their all services by
advertising, distribution of pamphlet, arranging seminars etc.
• Company should also provide knowledge about the growth rate and the expected
growth rate of Mutual Fund industry in India.
• RELIANCE CAN INDULGE IN A CSR ACTIVITY by spreading awareness
about Savings and promoting SIP.
Reliance should promote some Campaign for these Small Income Section of the Society
and aware them to start saving today and invest it in the form of Sip for there futures.
60

CHAPTER - IX
LIMITATIONS TO THE SURVEY
Though research based decision-making is now considered but still there is gap between
the understanding of researcher and users.
Research is there to help in decision-making, not a substitute of decision-making. Some
of the following limitations have restricted the scope of survey to some extent:
 Some respondents gave vague information and were not serious while
responding.
 Some respondents were hesitant to reveal information about them, as they don’t
trust the private companies.
 It was difficult to find whether respondents actually participate in their financial
planning.
 Research can provide no. Of facts but it does not provide actionable results.
 Management rely more on the intuitions and judgment rather than research.
 Area of research was restricted to some locations of the city.
MUTUAL FUNDS ARE SUBJECT TO MARKET RISK.
61

CHAPTER - X
BIBLIOGRAPHY
Websites:
 www.rcap.com
 www.indiacorporateadvisor.com
 www.amfiindia.com
 www.moneycontrol.com
Books Referred: -
“Malhotra, Naresh K. (2010) Marketing Research an Applied Orientation
(6th
Edition).”
Magazines & Journals Referred: -
 Business Today
 ICICI Prudential AMC’s Fact sheet-“THE
PRUDENT” .
 Fact Sheets of All Mutual Fund Companies.
62

CHAPTER - XI
ANNEXURE
General Question in the interview session
 Have you invested /are you interested to invest in Mutual Funds?
 What is the most important reason for not investing in Mutual Funds?
 Where do you find yourself as a Mutual Fund investor?
 What attracts you more Mutual Fund as a lump sum or SIP?
 Where from you purchase Mutual Funds?
 Of what amount of monthly installment you are willing to start a SIP?
 Which feature of the mutual funds allure you most?
 According to you which are the most suitable stage to invest in mutual
funds?
 Are you availing the services of personal financial advisors?
 Which expertise of the personal financial advisor is demanded most?
 What is the major reason for using financial advisors (agents)?
63

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