A Project Report On Targeting And Positioning Strategy Of Reliance Money


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A Project Report On Targeting And Positioning Strategy Of Reliance Money

  1. 1. FINAL PROJECT REPORT ON“Targeting and Positioning Strategy of FinancialProduct/Services offered by Reliance Money” IN PARTIAL FULFILMENT OF MS (Marketing) (MS-2nd year 2007-2009) FOR Reliance Money, Hyderabad. BY SAMIR ANAND (0911) MS (MARKETING)The ICFAI School of Marketing StudiesHyderabad -1- The ICFAI School of Marketing Studies
  2. 2. FINAL PROJECT REPORT ON“Targeting and Positioning Strategy of Financial Product/Servicesoffered by Reliance Money” IN PARTIAL FULFILMENT OF MS(Marketing) (MS-2nd year 2007-2009) FOR Reliance Money, Hyderabad. BY SAMIR ANAND (0911) MS (MARKETING)CORPORATE GUDE: FACULTY GUIDE:MR. RAVINDER SONI DR. K.RANDHEER -2- The ICFAI School of Marketing Studies
  3. 3. PREFACEPrivate sector is one of the fastest growing sectors in the country. After the Liberalization the Privateindustry still holds vast opportunities for young and experienced professionals. On the life insuranceside public sector life insurance Corporation of India is, of course, the largest player with a history ofover 50 years. After Privatization, the PSU has been making efforts to improve efficiency andcustomer services. Among the private life insurance player Reliance life insurance is the key player.Reliance money - Anil Dhirubhai Ambani Group offers most dynamic web based trading environmentto its customers .The Reliance Money stock trading websites uses special security features SecurityToken, which makes you online trading experience more secure without complexity. Reliance ADGprovide the vast opportunities to the new aspirants of the business administration. The financialSector is full of competition even if there are a lot of opportunities to the job in Reliance Money and Itis the platform to go on the highest peak in the life of any coming one. Reliance Money is a singlewindow that provides the multisystem facilities of the financial Products. There are many companiesin the market which are providing the financial product like insurance, demat account services,mutual funds, general insurance, Portfolio management services(PMS), wealth management, goldcoins, Money changing , Money Transfer, and the others.Hence Reliance Money provides many financial products on the single window. Reliance money dealswith the product and Investment options are available in...  Equity (Stock) Trading  Derivatives Trading Special feature is available first time to track your positions online, in real time.  Forex Trading  Commodity Trading  IPOs  Mutual Funds  Insurance -3- The ICFAI School of Marketing Studies
  4. 4. AKNOWLADGEMENTSometimes words fall short to show gratitude, the same happened with me during this project. Theimmense help and support received from Reliance Money Limited overwhelmed me during theproject.It is a great opportunity for me to work with Reliance money, pioneers in the field of stock trading, apart of Reliance Capital Ltd. I am extremely grateful to the entire team of Reliance Money atHyderabad who have shared their expertise and knowledge with me and without whom thecompletion of this project would have been virtually impossible.My sincere gratitude to Mr. Lalit Soni (Cluster Head, Hyderabad) for providing me with anopportunity to work with Reliance Money Limited as a company project guide who has provided mewith the necessary information and his valuable suggestion and comments on bringing out thisreport in the best possible way.I am highly indebted to Mr. Ravinder Soni (Relationship Manager of Reliance Money) and companyproject guide, who has provided me the necessary information and his valuable suggestion and agood support in understanding the basics of the Reliance Money easily.In this context, as a student of The ICFAI School of Marketing Studies, Hyderabad I would first of alllike to express my thank fullness to Dr. K.Randheer for assigning me such a worthwhile title(Targeting and Positioning strategies of Financial Products/Services offered by Reliance Money)towork upon in Reliance Money . I am also thankful to other associates (PFA) who had helped me in thisproject.I express my sincere gratitude to our Director Dr.T.R.K Rao and Dean Dr.K.Rajanath for allowing meto carry on this project. -4- The ICFAI School of Marketing Studies
  6. 6. ABSTRACTThis project has been a great learning experience for me; at the same time it gave meenough scope to implement my analytical ability. This project as a whole can be divided intotwo parts:  The first part gives an insight about the mutual funds and its various aspects. It is purely based on whatever I learned at Reliance Money. One can have a brief knowledge about Mutual funds and all its basics through the project. Other than that the real servings come when one moves ahead. Some of the most interesting questions regarding mutual funds have been covered. Apart from Mutual Funds a light has also been through on Life Insurance Policies. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the datas have been well analyzed with the help of charts and graphs.  The second part consists of data and their analysis, collected through a survey done on 200 people. It covers the topic” Awareness and Impact level among people about Mutual Funds and Life Insurance Policies”. The data collected has been well organized and presented. Hope the research findings and conclusions will be of use. It has also covered why people don’t want to go in invest? The advisors can take further steps to approach more and more people and indulge them for taking their advices. -6- The ICFAI School of Marketing Studies
  7. 7. SCOPE OF THE STUDYThe scope of the study refers to the job that to know about the activities of the organization.The study means that the analysis of the products of the company on which he/she has tofocus.During the MSP days the volunteer need to find out the corporate strategies of the runningcompany and the mile stone which the company has covered during its journey. In thesummer training, it is necessary for the student that he /she involve with the experienceguys to get the knowledge about the company. That is how the company has got thesuccess, Or if it is going in the loss, why.During this MSP period I have found that the reliance group is the biggest group in Indiancompanies. I felt that I can learn the more in the Reliance Money and Reliance Mutual Fund.Reliance Money and Reliance Mutual fund is the part of the Reliance Capital Limited which isa growing company in the financial products.Reliance Anil Dhirubhai Ambani group is also deals in communication, energy, naturalresources, media, and entertainment, healthcare and infrastructure. -7- The ICFAI School of Marketing Studies
  8. 8. INTRODUCTIONTARGETING DONE BY RELIANCE MONEYReliance Money is Targeting on :-  Small Cities (tier 2, tier 3 cities) though it already has a great recognition tier-1 cities and metros.  It is the only wing of Reliance Capital which targets on NRIs, Foreign collaborations and have branches in foreign countries like Singapore, Malaysia and US.  The company is also focusing to leverage as it is also franchises to target various differential markets and its customers. The company is expanding its branch network and also, more importantly, its franchisee network. Reliance Money has over 10,000 outlets now, of which 500-600 are owned by the company.  Moreover the company is very much focused on doing business at Retail level as the collaboration of R-Money with STIC travel group is a live example of it.  Last but not the least the company is offering financial products and services which are very required by the common people so its target population is differential SEC (SPECIAL ECONOMIC CLASSES) on the basis of various Demographics, Income groups, Occupation, etc. -8- The ICFAI School of Marketing Studies
  9. 9. POSITIONING DONE BY RELIANCE MONEYPositioning is the next step after Targeting. Here for this purpose Reliance Money has donevarious activities (like as some of which are done in their promotional activities) some ofwhich are;  It is the brand name of the company RELIANCE which is India’s biggest company. Here when it comes the time of choosing financial products/services and moreover when a person compares with other companies definitely his one of the preferences/choice is Reliance Products/Services.  The company has positioned itself as the Retail Outlet or a Financial Supermarket where all the needs of a person in terms of taking a financial Product/Service is fulfilled as it offers the differential financial products/services of various companies. Ex. Mutual Fund and Insurance Policies of ICICI, FRANKLIN TEMPLETON, SBI, HDFC, KARVY, TATA AIG, etc.  It regularly conducts Seminars, Events (even participates in events) to provide knowledge of its offered products/services and to have a direct face to face contact with the people. This really helps the company to improve its services given to the customer and moreover to improve and modify the products/services to fulfill the demand and wants of the customers and to offer a totally customized products/services.  It also pays attention of promotion i.e. it does unique promotion and advertisement which draws the attention of the public anyhow and there it shows that “Yes we are something Different “and this is also perceived and positioned in the minds of the consumer. -9- The ICFAI School of Marketing Studies
  10. 10. AN EXAMPLE:A bundle of hundred rupee notes, a huge chain with a sizeable padlock and a few wordswere quite enough for the ADAG led Reliance Mutual Funds to unlock its ideas before itstarget group. A large safe kept at suburban railways stations in Mumbai grabbed just theright eyeballs and pamphlets educating the consumer added to the impact of the campaign.The outdoor campaign that was launched in Mumbai adopted a disruptive method tocommunicate its message to investors. Hoardings sporting bundles of hundred rupee notesthat were chained and locked were set up at important locations such as Mahim, BandraKurla Complex and Worli. The tagline read: ‘Unlock your money’s potential’. It was a clearcall to investors who store their money in fixed deposit schemes and other less productiveoptions.An extensive and expansive outdoor campaign was conducted by Reliance with thislatest strategy. The campaign included ground level activities at crowded public places andmicro marketing. The creative idea is a collaborative brain child of Reliance and 141 Sercon.Vikrant Gugnani, president, Reliance Mutual Funds, says, “We wanted to create awarenessamong the investing populace.”By way of brief, Reliance told the agency that it wanted a disruptive way of targetinginvestors. The disruption is in the form of standing out starkly and being noticed as a betteroption to just banking.Gugnani continues, “The objective was to bring to people’s attention that instead of moneylying idle in the bank, one could invest it wisely in mutual funds.”The on-ground campaign had a large safe deposit box, which ran the same positioning lineas the hoarding. The safe deposit box was strategically placed at crowded places such asrailway stations, bus stops and car parks. Road shows and a moving billboard were also partof the campaign. Pamphlets were distributed at the venues to educate prospective investorsabout Reliance’s various systematic investment plans.The campaign has been carried out only in Mumbai as of now. Plans to launch it in othermetros such as Delhi, Bangalore and Kolkata have been voiced. Smaller cities such asChandigarh, Vadodara, Nasik and Guwahati are also on the list. There are also othercampaigns in the offing, which will be released soon. So from the above example it is clearthat the company always do something unique to attract people. - 10 - The ICFAI School of Marketing Studies
  11. 11. COMPANY PROFILE - 11 -The ICFAI School of Marketing Studies
  12. 12. About Reliance Money in brief Reliance Capital Reliance Reliance Reliance Reliance Reliance Consumer General Insurance Life Insurance Money Mutual fund FinanceReliance money is a part of the reliance Anil Dhirubhai Ambani Group and is promoted by Mutual FundReliance capital, the fastest growing private sector financial services company in India, rankedamongst the top 3 private sector financial companies in terms of net worth.Reliance money is a comprehensive financial solution provider that enables you to carry outtrading and investment activities in a secure, cost-effective and convenient manner. Throughreliance money, you can invest in a wide range of asset classes from Equity, Equity and commodityDerivatives, Mutual Funds, insurance products, IPO’s to availing services of Money Transfer &Money changing.Reliance Money offers the convenience of on-line and offline transactions through a variety ofmeans, including its Portal, Call & Transact, Transaction Kiosks and at it’s network of affiliates.Some key steps of the company that are as….. - 12 - The ICFAI School of Marketing Studies
  13. 13. “Success is a journey, not a destination.” If we look for examples to prove this quote then wecan find many but there is none like that of Reliance Money. The company which is today known asthe 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 it namelyTrust, Integrity, Dedication, Commitment, Enterprise, Hard work,Home work, Team work play, Learning and Innovation, Empathyand Humility and last but not the least it’s the Network .These are the values that bind success with Reliance Money.  Vision of Reliance MoneyTo achieve & sustain market leadership, Reliance Money shall aim for complete customersatisfaction, by combining its human and technological resources, to provide world class qualityservices. In the process Reliance Money shall strive to meet and exceed customers satisfaction andset industry standards.  Mission statement:“Our mission is to be a leading and preferred service provider to ourcustomers, and we aim to achieve this leadership position by buildingan innovative, enterprising , and technology driven organization whichwill set the highest standards of service and business ethics.” - 13 - The ICFAI School of Marketing Studies
  14. 14. Largest Indian brokerage with Million customers & largest distribution Network 8,512 outlets in over 4,250 locations 713,636 broking accounts Daily average volume of Rs. 20 billion Revenue for FY08 – Rs. 2.4 billion Break even in first year of operations - 14 -The ICFAI School of Marketing Studies
  15. 15. PARTNERS OF COMPANY - 15 -The ICFAI School of Marketing Studies
  16. 16. EquityReliance Money offers its clients competitively priced Equity broking, PMS and Portfolio AdvisoryServices. Trading execution assistance provided to clients. In addition Reliance Money providesindependent and unbiased view on markets along with trading strategies and entry / exit pointsfor taking an informed decision.Mutual FundsA mutual fund is a professionally managed fund of collective investments that collects money frommany investors and puts it in stocks, bonds, short-term money market instruments, and/or othersecurities.Reliance Money offers dedicated research & expert advice on Mutual Funds. Mutual funds areconsidered to have low risk factors owing to diversification of assets into various sectors andscripts or instruments within.InsuranceLife-InsuranceReliance Money assists its clients in choosing a customized plan which will secure the family’sfuture and their expenses post-retirement. Clients can choose from different plans of almost allInsurance Companies where they can invest their money. Clients can choose from products andservices that channelise their savings and protect their needs while guaranteeing security andreturns for life. A team of experts will suggest the best Insurance scheme which suits the client’srequirement. - 16 - The ICFAI School of Marketing Studies
  17. 17. General InsuranceGeneral Insurance is all about protecting against all kind of insurable risks. Reliance Money assistsyou in areas of Health insurance, Travel insurance, Home insurance and Motor insurance.CommoditiesA single platform to trade on both the major commodity exchanges i.e. NCDEX and MCX. Inaddition In-house research desk shall provide research reports on all major commodities whichshall enable in getting views for trading and diversify client’s holdings. Trade Execution assistanceis also provided to clients.Structured Products, Art InvestmentsStructured Products is a new class of financial products for investors apprehensive of increasedvolatility in stock markets. Specially designed products could include Equity, Index-linked innature, Real Estate Funds, Art Funds, Overseas Investments and Infrastructure Investments.Tax PlanningWith a view to provide complete wealth management solutions, Reliance Money’s wealthmanagement offerings include tax related services like:Tax Planning & advisoryFiling Tax returns for individualsReal Estate Advisory ServicesBroking Model for lease/rent and buy/sell of propertyProperty ValuationReal-estate Consulting – Corporate earnings model, Lease rentals, etc.Offshore InvestmentsReliance Money provides a unique opportunity to invest in international financial markets throughthe online platform which includes different product ranges. - 17 - The ICFAI School of Marketing Studies
  18. 18. MUTUAL FUNDS – AN UNDERSTANDING Like most developed and developing countries the mutual fund cult has been catching onin India. There are various reasons for this. Mutual funds make it easy and less costly for investorsto satisfy their need for capital growth, income and/or income preservation. And in addition to this a mutual fund brings the benefits of diversification and moneymanagement to the individual investor, providing an opportunity for financial success that wasonce available only to a select few. Understanding Mutual funds is easy as its such a simple concept: a mutual fund is acompany that pools the money of many investors -- its shareholders -- to invest in a variety ofdifferent securities. Investments may be in stocks, bonds, money market securities or somecombination of these. Those securities are professionally managed on behalf of the shareholders,and each investor holds a pro rata share of the portfolio -- entitled to any profits when thesecurities are sold, but subject to any losses in value as well. For the individual investor, mutual funds provide the benefit of having someone elsemanage your investments and diversify your money over many different securities that may not beavailable or affordable to you otherwise. Today, minimum investment requirements on manyfunds are low enough that even the smallest investor can get started in mutual funds. A mutual fund, by its very nature, is diversified -- its assets are invested in many differentsecurities. Beyond that, there are many different types of mutual funds with different objectivesand levels of growth potential, furthering your chances to diversify. - 18 - The ICFAI School of Marketing Studies
  19. 19. The Concept of Mutual FundA mutual fund is a common pool of money into which investors place their contributions that areto be invested in accordance with a stated objective. The ownership of the fund is thus ‘joint’ and‘mutual’; the fund belongs to all investors.Mutual Funds Industry in IndiaThe origin of mutual fund industry in India is with the introduction of the concept of mutual fundby UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 whennon-UTI players entered the industry.In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualitywise as well as quantity wise. Before, the monopoly of the market had seen an ending phase, theAssets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund family raisedthe AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of 1,540 bn.Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less thanthe deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian bankingindustry.The main reason of its poor growth is that the mutual fund industry in India is new in the country.Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is theprime responsibility of all mutual fund companies, to market the product correctly abreast ofselling.The mutual fund industry can be broadly put into four phases according to the development of thesector. Each phase is briefly described as under. - 19 - The ICFAI School of Marketing Studies
  20. 20. First Phase - 1964-87Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by theReserve Bank of India and functioned under the Regulatory and administrative control of theReserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial DevelopmentBank of India (IDBI) took over the regulatory and administrative control in place of RBI. The firstscheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores ofassets under management.Second Phase - 1987-1993 (Entry of Public Sector Funds)Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can bank MutualFund(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 in 1989 and GIC in 1990. Theend of 1993 marked Rs.47, 004 as assets under management.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 fundindustry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year inwhich the first Mutual Fund Regulations came into being, under which all mutual funds, exceptUTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with FranklinTempleton) was the first private sector mutual fund registered in July 1993.The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revisedMutual 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 upfunds in India and also the industry has witnessed several mergers and acquisitions. As at the end - 20 - The ICFAI School of Marketing Studies
  21. 21. of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The UnitTrust of India with Rs.44, 541 crores of assets under management was way ahead of other mutualfunds.Fourth Phase - since February 2003This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is theSpecified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores (as on January2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator andunder the rules framed by Government of India and does not come under the purview of theMutual Fund Regulations.The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered withSEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTIwhich had in March 2000 more than Rs.76, 000 crores of AUM and with the setting up of a UTIMutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers takingplace among different private sector funds, the mutual fund industry has entered its current phaseof consolidation and growth. As at the end of September, 2004, there were 29 funds, which manageassets of Rs.153108 crores under 421 schemes. - 21 - The ICFAI School of Marketing Studies
  22. 22. GROWTH IN ASSETS UNDER MANAGEMENTNote:Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the UnitTrust of India effective from February 2003. The Assets under management of the SpecifiedUndertaking of the Unit Trust of India has therefore been excluded from the total assets of theindustry as a whole from February 2003 onwards.Mutual Fund Companies in IndiaThe concept of mutual funds in India dates back to the year1963. The era between 1963 and 1987 marked the existanceof only one mutual fund company in India with Rs. 67bn assets under management (AUM), by theend of its monopoly era, the Unit Trust of India (UTI). By the end of the 80s decade, few othermutual fund companies in India took their position in mutual fund market.The new entries of mutual fund companies in India were SBI Mutual Fund, Canbank Mutual Fund,Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund. - 22 - The ICFAI School of Marketing Studies
  23. 23. The succeeding decade showed a new horizon in Indian mutual fund industry. By the end of 1993,the total AUM of the industry was Rs. 470.04 bn. The private sector funds started penetrating thefund families. In the same year the first Mutual Fund Regulations came into existence with re-registering all mutual funds except UTI. The regulations were further given a revised shape in1996.Kothari Pioneer was the first private sector mutual fund company in India which has now mergedwith Franklin Templeton. Just after ten years with private sector players penetration, the totalassets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund companies in India.Major Mutual Fund Companies in IndiaABN AMRO Mutual FundABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee (India) Pvt. Ltd. asthe Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd. was incorporated onNovember 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund.Birla Sun Life Mutual FundBirla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. SunLife Financial is a global organization evolved in 1871 and is being represented in Canada, the US,the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life Mutual Fundfollows a conservative long-term approach to investment. Recently it crossed AUM of Rs. 10,000crores.Bank of Baroda Mutual Fund (BOB Mutual Fund)Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under thesponsorship of Bank of Baroda. BOB Asset Management Company Limited is the AMC of BOB - 23 - The ICFAI School of Marketing Studies
  24. 24. Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the custodian.HDFC Mutual FundHDFC Mutual Fund was setup on June 30, 2000 with two sponsorers namely Housing DevelopmentFinance Corporation Limited and Standard Life Investments Limited.HSBC Mutual FundHSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital Markets (India)Private Limited as the sponsor. Board of Trustees, HSBC Mutual Fund acts as the Trustee Companyof HSBC Mutual Fund.ING Vysya Mutual FundING Vysya Mutual Fund was setup on February 11, 1999 with the same named Trustee Company. Itis a joint venture of Vysya and ING. The AMC, ING Investment Management (India) Pvt. Ltd. wasincorporated on April 6, 1998.Prudential ICICI Mutual FundThe mutual fund of ICICI is a joint venture with Prudential Plc. of America, one of the largest lifeinsurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13th of October,1993 with two sponsorers, Prudential Plc. and ICICI Ltd. The Trustee Company formed isPrudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company LimitedIncorporated on 22nd of June, 1993.Sahara Mutual FundSahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial Corporation Ltd. asthe sponsor. Sahara Asset Management Company Private Limited incorporated on August 31, - 24 - The ICFAI School of Marketing Studies
  25. 25. 1995 works as the AMC of Sahara Mutual Fund. The paid-up capital of the AMC stands at Rs 25.8crore.State Bank of India Mutual FundState Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshor fund,the India Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the largest Banksponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15 havealready yielded handsome returns to investors. State Bank of India Mutual Fund has more than Rs.5,500 Crores as AUM. Now it has an investor base of over 8 Lakhs spread over 18 schemes.Tata Mutual FundTata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsorers for TataMutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manager isTata Asset Management Limited and its Tata Trustee Company Pvt. Limited. Tata AssetManagement Limiteds is one of the fastest in the country with more than Rs. 7,703 crores (as onApril 30, 2005) of AUM.Kotak Mahindra Mutual FundKotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. It is presentlyhaving more than 1, 99,818 investors in its various schemes. KMAMC started its operations inDecember 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with varyingrisk - return profiles. It was the first company to launch dedicated gilt scheme investing only ingovernment securities.Unit Trust of India Mutual FundUTI Asset Management Company Private Limited, established in Jan 14, 2003, manages the UTIMutual Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management - 25 - The ICFAI School of Marketing Studies
  26. 26. Company presently manages a corpus of over Rs.20000 Crore. The sponsorers of UTI Mutual Fundare Bank of Baroda (BOB), Punjab National Bank (PNB), State Bank of India (SBI), and LifeInsurance Corporationof India (LIC). The schemes of UTI Mutual Fund are Liquid Funds, Income Funds, AssetManagement Funds, Index Funds, Equity Funds and Balance Funds.Standard Chartered Mutual FundStandard Chartered Mutual Fund was set up on March 13, 2000 sponsored by Standard CharteredBank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered AssetManagement Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December20,1999.Franklin Templeton India Mutual FundThe group, Franklin Templeton Investments is a California (USA) based company with a globalAUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups in theworld. Investors can buy or sell the Mutual Fund through their financial advisor or through mail orthrough their website. They have Open end Diversified Equity schemes, Open end Sector Equityschemes, Open end Hybrid schemes, Open end Tax Saving schemes, Open end Income and Liquidschemes, Closed end Income schemes and Open end Fund of Funds schemes to offer.Morgan Stanley Mutual Fund IndiaMorgan Stanley is a worldwide financial services company and it’s leading in the market insecurities, investment management and credit services. Morgan Stanley Investment Management(MISM) was established in the year 1975. It provides customized asset management services andproducts to governments, corporations, pension funds and non-profit organizations. Its servicesare also extended to high net worth individuals and retail investors. In India it is known as MorganStanley Investment Management Private Limited (MSIM India) and its AMC is Morgan StanleyMutual Fund (MSMF). This is the first close end diversified equity scheme serving the needs of - 26 - The ICFAI School of Marketing Studies
  27. 27. Indian retail investors focusing on a long-term capital appreciation.Escorts Mutual FundEscorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its sponsor. TheTrustee Company is Escorts Investment Trust Limited. It’s AMC was incorporated on December 1,1995 with the name Escorts Asset Management Limited.Alliance Capital Mutual FundAlliance Capital Mutual Fund was setup on December 30, 1994 with Alliance Capital ManagementCorp. of Delaware (USA) as sponsored. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, theAlliance Capital Asset Management India (Pvt) Ltd. with the corporate office in Mumbai.Benchmark Mutual FundBenchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt. Ltd. as thesponsored and Benchmark Trustee Company Pvt. Ltd. as the Trustee Company. Incorporated onOctober 16, 2000 and headquartered in Mumbai, Benchmark Asset Management Company Pvt.Ltd. is the AMC.Canbank Mutual FundCanbank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as the sponsor.Canbank Investment Management Services Ltd. incorporated on March 2, 1993 is the AMC. TheCorporate Office of the AMC is in Mumbai.Chola Mutual FundChola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance Company Ltd.was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is - 27 - The ICFAI School of Marketing Studies
  28. 28. Cholamandalam AMC Limited.LIC Mutual FundLife Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed Rs. 2Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in accordancewith the provisions of the Indian Trust Act, 1882. . The Company started its business on 29th April1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset ManagementCompany Ltd as the Investment Managers for LIC Mutual Fund.GIC Mutual FundGIC Mutual Fund, sponsored by General Insurance Corporation of India (GIC), a Government ofIndia undertaking and the four Public Sector General Insurance Companies, viz. National Insurance Co. Ltd (NIC), The New India Assurance Co. Ltd. (NIA), The OrientalInsurance Co. Ltd (OIC) and United India Insurance Co. Ltd. (UII) and is constituted as a Trust inaccordance with the provisions of the Indian Trusts Act, 1882.Future of Mutual Funds in IndiaBy December 2004, Indian mutual fund industry reached Rs 1, 50,537 crore. It is estimated that by2010 March-end, the total assets of all scheduled commercial banks should be Rs 40, 90,000 crore.The annual composite rate of growth is expected 13.4% during the rest of the decade. In the last 5years we have seen annual growth rate of 9%. According to the current growth rate, by year 2010,mutual fund assets will be double. - 28 - The ICFAI School of Marketing Studies
  29. 29. Let us discuss with the following table:Aggregate deposits of Scheduled Com Banks in India (Rs.Crore) Mar-Month/Year Mar-98 Mar-00 Mar-01 Mar-02 Mar-03 Sep-04 4-Dec 04Deposits 605410 851593 989141 1131188 1280853 - 1567251 1622579Change in % over last 15 14 13 12 - 18 3yrSource - RBIMutual Fund AUM’s GrowthMonth/Year Mar-98 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Sep-04 4-DecMF AUMs 68984 93717 83131 94017 75306 137626 151141 149300Change in % over last yr 26 13 12 25 45 9 1Source - AMFISome facts for the growth of mutual funds in India  100% growth in the last 6 years.  Number of foreign AMC’s is in the queue to enter the Indian markets like Fidelity Investments, US based, with over US$1trillion assets under management worldwide.  Our saving rate is over 23%, highest in the world. Only channelizing these savings in mutual funds sector is required. - 29 - The ICFAI School of Marketing Studies
  30. 30.  We have approximately 29 mutual funds which is much less than US having more than 800. There is a big scope for expansion.  B and C class cities are growing rapidly. Today most of the mutual funds are concentrating on the A class cities. Soon they will find scope in the growing cities.  Mutual fund can penetrate rural like the Indian insurance industry with simple and limited products.  SEBI allowing the MFs to launch commodity mutual funds.  Emphasis on better corporate governance.  Trying to curb the late trading practices.  Introduction of Financial Planners who can provide need based advice.CATAGORIES OF MUTUAL FUNDS - 30 - The ICFAI School of Marketing Studies
  31. 31. WHY INVEST IN MUTUAL FUNDS Investing in mutual has various benefits, which makes it an ideal investment avenue.Following are some of the primary benefits:Professional investment management One of the primary benefits of mutual funds is that an investor has access to professionalmanagement. A good investment manager is certainly worth the fees you will pay. Good mutualfund managers with an excellent research team can do a better job of monitoring the companiesthey have chosen to invest in than you can, unless you have time to spend on researching thecompanies you select for your portfolio. That is because Mutual funds hire full-time, high-levelinvestment professionals. Funds can afford to do so as they manage large pools of money. The managers have real-time access to crucial market information and are able to execute trades on the largest and mostcost-effective scale. When you buy a mutual fund, the primary asset you are buying is the manager,who will be controlling which assets are chosen to meet the funds stated investment objectives.Reliance Mutual FundReliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai Ambani Group, is Indiasleading Mutual Fund, with average Assets under Management of Rs. 90,813 crores for the month ofJune 2008, and an investor base of over 6.7 million. Reliance Mutual Fund offers investors a wellrounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has apresence in 300 cities across the country and constantly endeavors to launch innovative productsand customer service initiatives to increase value to investors. Reliance Mutual Fund schemes aremanaged by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of RelianceCapital Ltd. - 31 - The ICFAI School of Marketing Studies
  32. 32. Types of Mutual Funds on the Basis of Risk Vs Return Sector Funds Diversified EquityR Fundse Balanced Funds MIPst Gilt Fundsu Income Fundsr Floatersn Money Market Fundss Risk - 32 - The ICFAI School of Marketing Studies
  33. 33. Types of Reliance Mutual Funds 1. Reliance Growth Fund 2. Reliance Vision Fund 3. Reliance Banking Fund 4. Reliance Diversified Power Sector Fund 5. Reliance Pharma Fund 6. Reliance Media & Entertainment Fund 7. Reliance NRI Equity Fund 8. Reliance Equity opportunities Fund 9. Reliance Index Fund 10. Reliance Tax Saver (ELSS) Fund 11. Reliance Equity Fund 12. Reliance Long Term Equity Fund 13. Reliance Regular Saving FundThere are two types of investment in Mutual Funds. Lump Sum Systematic Investment Plan(SIP)  Lump sum: In Lump sum the investment is only one times thatis of Rs. 5,000. and if the investment is monthly then the investment will be 6,000/-.  Systematic Investment Plan(SIP) :We have already mentioned about SIPs in brief in the previous pages but now going into details,we will see how the power of compounding could benefit us. In such case, every small amountsinvested regularly can grow substantially. SIP gives a clear picture of how an early and regularinvestment can help the investor in wealth creation. Due to its unlimited advantages SIP could be - 33 - The ICFAI School of Marketing Studies
  34. 34. Redefined as “a methodology of fund investing regularly to benefit regularly from the stock marketvolatility. In the later sections we will see how returns generated from some of the SIPs haveoutperformed their benchmark. But before moving on to that lets have a look at some of the topperforming SIPs and their return for 1 year:Scheme Amount NAV NAV Date Total AmountReliance diversified power sectorretail 1000 62.74 30/5/2008 14524.07Reliance regular savings equity 1000 22.208 30/5/2008 13584.944principal global opportunities fund 1000 18.86 30/5/2008 14247.728DWS investment opportunities fund 1000 35.31 30/5/2008 13791.157BOB growth fund 1000 42.14 30/5/2008 13769.152In the above chart, we can see how if we start investing Rs.1000 per month then what return we’llget for the total investment of Rs. 12000. There is reliance diversified power sector retail giving themaximum returns of Rs. 2524.07 per year which comes to 21% roughly. Next we can see if anybodywould have undertaken the SIP in Principal would have got returns of app. 18%. We can seereliance regular savings equity, DWS investment opportunities and BOB growth fund givingreturns of 13.20%, 14.92%, and 14.74% respectively which is greater than any other monthlyinvestment options. Thus we can easily make out how SIP is beneficial for us. Its hassle free, itforces the investors to save and get them into the habit of saving. Also paying a small amount of Rs.1000 is easy and convenient for them, thus putting no pressure on their pockets.Now we will analyze some of the equity fund SIP s of Birla Sunlife with BSE 200 and bank fixeddeposits In a tabular format as well as graphical. - 34 - The ICFAI School of Marketing Studies
  35. 35. Working of a Mutual FundAdvantages of Mutual Funds  Diversification: The best mutual funds design their portfolios so individual investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value.  Professional Management: Most mutual funds pay topflight professionals to manage their investments. These managers decide what securities the fund will buy and sell.  Regulatory oversight: Mutual funds are subject to many government regulations that protect investors from fraud.  Liquidity: Its easy to get your money out of a mutual fund. Write a check, make a call, and youve got the cash.  Convenience: You can usually buy mutual fund shares by mail, phone, or over the Internet. - 35 - The ICFAI School of Marketing Studies
  36. 36.  Low cost: Mutual fund expenses are often no more than 1.5 percent of your investment. Expenses for Index Funds are less than that, because index funds are not actively managed. Instead, they automatically buy stock in companies that are listed on a specific index.  Transparency  Flexibility  Choice of schemes  Tax benefits  Well regulatedDrawbacks of Mutual FundsMutual funds have their drawbacks and may not be for everyone:  No Guarantees: No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money.  Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge sales commissions or "loads" to compensate brokers, financial consultants, or financial planners. Even if you dont use a broker or other financial adviser, you will pay a sales commission if you buy shares in a Load Fund.  Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the income you receive, even if you reinvest the money you made. - 36 - The ICFAI School of Marketing Studies
  37. 37. Basics of Life InsuranceWhat is Life Insurance?An amount of money paid to someone (called beneficiary) when the Life Assured (in whose namethe insurance policy is taken) dies. This amount can be used to pay the expenses related to Lifeassureds death or can be invested to generate income that will replace your salary. Life Insuranceis an important tool in any investors portfolio & can be used for - wealth creation, asset building,provide for contingencies and retirement planning. The main reason to buy Life Insurance is to provide income replacement for your loved onesTypes of Life Insurance Policies  Most Insurance policies are a combination of Savings & Protection.  Products are formulated by either increasing or decreasing either one of these components.  These combinations can be broadly divided into 4 groups - ULIPs - Term Insurance - Endowment Policies : Whole Life; Unit Linked etcAnnuities & Pension. - 37 - The ICFAI School of Marketing Studies
  38. 38. Products of Life InsuranceLife Insurance products are usually referred to as ‘plans’ of insurance. These plans have two basicelements; one is the “Death Cover” providing for the benefits being paid on the death of the insuredperson within a specified period. The other is the “Survival Benefit” providing for the benefit beingpaid on survival of a specified period.  Plans of insurance that provide only death cover are called “Term Assurance” Plans.  Plans of insurance that provide only survival benefits are called “Pure Endowment” PlansTerm Life InsuranceTerm Life Insurance provides protection for a specified period of time. A death benefit is paid tothe beneficiary if the insured dies within a specified period of time while the policy is still in force.Whole Life InsuranceWhole Life insurance is a permanent life insurance and provides protection for life. As long aspremiums are paid, a death benefit is paid to the beneficiary.ULIPsA ULIP is a life insurance which provides a combination of Life Insurance protection andinvestment. Money can be invested in the following fund:- Equity Fund, Debt Fund, Money MarketFund (Liquid Fund) and Balance Fund.AnnuitiesAnnuities are practically the same as pension. Pension provides periodical payments to theemployees, who have retired. They are paid as long as the recipient is alive. Annuities arecalled the “reverse” of Life Insurance. - 38 - The ICFAI School of Marketing Studies
  39. 39. VARIOUS INSURANCE PLANS OFFERED BY RELIANCE MONEY (i.e. of RELIANCELIFE INSURANCE)  Protection PlansProtects family even when you’re not around by investing in Reliance Protection Plans. Choose alimited period plan or a lifetime protection plan depending on your needs. The latest ProtectionPlans are as below… 1. Reliance Term plan 2. Reliance Simple Term plan 3. Reliance Special Term plan 4. Reliance Credit Guardian plan 5. Reliance Special Credit Guardian plan 6. Reliance Endowment plan 7. Reliance Special Endowment plan 8. Reliance Connect 2 Life plan 9. Reliance Whole Life plan 10. Reliance Wealth + Health plan 11. Reliance Cash Flow plan  Savings & Investment PlansReliance Savings & Investment Plans help you to set aside some money to achieve specific goals inlife, which means that you can enjoy life and provide for your family’s daily needs. The savings andinvestment Plans are as below… 1. Reliance Total Investment Plan Series I - Insurance 2. Reliance Wealth + Health plan 3. Reliance Automatic Investment plan 4. Reliance Money Guarantee plan - 39 - The ICFAI School of Marketing Studies
  40. 40. 5. Reliance Cash Flow plan 6. Reliance Market Return plan 7. Reliance Endowment plan 8. Reliance Special Endowment plan 9. Reliance Whole Life plan 10. Reliance Golden Years Plan 11. Reliance Golden Years Plan Value 12. Reliance Golden Years Plan Plus 13. Reliance Connect 2 Life plan  Retirement PlansInvest today in Reliance Retirement Plans and save money to enjoy life even after retirement. Youwill never have to depend on another person or make any compromises to maintain your currentlifestyle. The latest Retirement Plans are as below… 1. Reliance Total Investment Plan Series II – Pension 2. Reliance Golden Years Plan 3. Reliance Golden Years Plan Value 4. Reliance Golden Years Plan Plus 5. Reliance Wealth + Health plan 6. Reliance Automatic Investment Plan 7. Reliance Money Guarantee Plan  Child PlansSave systematically and secure your child’s future needs by investing in Reliance Child Plans. Youcan always be there for your child when he or she needs you. The Childs plans are as below… 1. Reliance Child plan 2. Reliance Secure Child plan 3. Reliance Wealth + Health plan - 40 - The ICFAI School of Marketing Studies
  41. 41. Market Return PlanUnder This plan the investment risk in the investment portfolio is borne by the policyholder.key features  Twin benefit of market linked return and insurance protection  A unit linked plan, different from traditional life insurance products with maximum maturity age of 80 years.  Option to create your own portfolio depending on your risk appetite.  Choose from four different investment funds  Flexibility to switch between funds  Option to pay regular as well as single premium & top- ups  Option to package your policy with accidental rider  Flexibility to increase the sum assured and liquidity to with draw money partially.WHO CAN BUT THE PRODUCT Minimum age at entry 30 years Maximum age at entry 65 years Maximum age at maturity 80 yearsWHAT IS THE POLICY TERM Minimum policy term 5 years Maximum policy term 40 years - 41 - The ICFAI School of Marketing Studies
  42. 42. MY WORK AT RELIANCE MONEYDuring the MSP period of 3 month i.e. from 24th July to 24th October I have gone throughvarious stages Job role. I was basically given the work to Target various Consumer Groups,Markets and Different Organizations to whom and where the company can pitch itsdifferential financial products/services as well as to create Awareness about the companyand its offerings in the regard to Promote which create a Position in minds of the consumer.Moreover I was given some training classes about Mutual funds and Life Insurance.I have worked for two financial product/service offered by R-Money which are  MUTUAL FUND  LIFE INSURANCE (I AM JUST IN THE INITIAL STAGE OF IT). As Targeting and Positioning are always followed by Segmentation, so I firstly took criteria of segmentation for targeting and positioning purpose on various aspects some of which are;  SEC (SPECIAL ECONOMIC CLASS) -- Different working classes like: 1. Service Class :  Top Level Personals (i.e. at Strategic Level) Middle Level Personals (i.e. at Tactical Level) Lower Level Personals (i.e. at Operational Level) 2. Business Class:  Entrepreneurs (Small Businessmen and some small firms Basically) - 42 - The ICFAI School of Marketing Studies
  43. 43. 3. Self Employed On the basis of Demographics:1. Age Factor: I segmented people as per 3 age criteria which are , (25—35)years (35—45) years, (45—60) years2. Education Level3. Gender:  Male and Female4. Income: According to the earnings and income of the product. According to the parameters taken above I have targeted people in various places of Hyderabad like, Banjara Hills, Begum pet, Balanagar, Punjagutta , Somajiguda, Erramanzil, Himayat Nagar, Ameerpet, Yellariguda for creating awareness and position of Mutual Funds and Life Insuarances offered by R-Money. Moreover this process also lead to the work of Lead Generation for the company and which could also be used by me for cross selling of the products/services to them. - 43 - The ICFAI School of Marketing Studies
  44. 44. Given below are some facts and comparison of Mutual Funds with other investment ismentioned which is done by me.MUTUAL FUND VS/S OTHERS Return Safety Volatilit Liquidit Convenie y y nce Equity High Low High High Moderat e Bonds Moderat High Modera Modera High e te te Co. Moderat Moderat Modera Low Low Debentur e e te es Co. FDs Moderat Low Low Low Moderat e e Bank Low High Low High High Deposits PPF Moderat High Low Modera High e te Life Low High Low Low Moderat Insuranc e e Gold Moderat High Modera Modera Gold e te te Real High Moderat High Low Low Estate e Mutual High High Modera High High Funds te - 44 - The ICFAI School of Marketing Studies
  45. 45. INSTRUMENT RETURN SAFETY VOLATILITY LIQUIDITY Equity High Low High High/low Bonds Moderate High Moderate Moderate Debenture Moderate Moderate Moderate Low Bank Deposits Low High Low High Mutual funds High High Moderate HighMutual fund is the preferred avenue for investment because:  Mutual fund combines the advantage of each of products.  They dispense the short coming of the other avenues  The returns get adjusted to the market movements.  The post tax returns are higher as compared to the other avenues.  Investment can be averaged out.  Minimizing the risk element. - 45 - The ICFAI School of Marketing Studies
  46. 46. Some Facts and findings about Life Insurance done by me are given below;LIFE STAGES IN LIFE INSURANCE Peak earning age range. High asset creation & build up of liabilities. Critical stage for Introduction of dependents Asset base build up dependents. Start of & liabilities reduced/ financial planning – taken care of. Need balance between asset for retirement creation & protection planning more than protection. No dependents/ Need for protection liabilities therefore low. Greater need need for insurance for regular income is less flow. •25-30 • 45 yrs and Married • 30-45 years above 18-25 couples with no Couples with children •Matured couple Retired (Unmarried) kids Endowment / ULIP’s Endowment / ULIP’s + Term Annuities At each stage, requirements, responsibilities and Financial needs differ - 46 - The ICFAI School of Marketing Studies
  47. 47. METHODOLOGYAGE STATUS INSURANCE SUGGESTED NEEDS PRODUCTS18yrs - 25yrs Unmarried 1.Go on a holiday Short Term Endowment 2.Buy a new Car Product 3.Set up a new house 4.Set up Interiors 5.Buy jewellery 1.High Debt, high25yrs -30yrs Married expenditure Phase Temporary term or whole 2.Family dependency on your income life Product 3.Low accumulated wealth 4.Need for Planning Requirement30yrs - 45yrs Matured couple 1.Retirement Planning Profits or Unit Linked 2.Wealth transfer or Endowment/ saving vehicles 3.Returns on investment Deferred annuities 4.Opting for guaranteed Product 1.Single Premium annuities60yrs and above Post Retirement 1.Protection in case you 2.Long term care products live long 3.Whole life products 2.Protection for spouse in case of death 3.Wealth accumulation for children Need Analysis in Life Stages - 47 - The ICFAI School of Marketing Studies
  48. 48. Life Stage Example Term Endowment Annuity Hello, I am Philip, sailor. Have seen the world. Always on cruise and keep worrying about family and the loans. I need financialSavera has just come to Protection if I do not return fromour lives. As proud one voyage Worked for almost 25parents, We need to years, now want toprotect her as well as live…. I want somethingcreate her own financial that will make my lifestanding Chinta (tension)-free after my retirement…. - 48 - The ICFAI School of Marketing Studies
  49. 49. LITRATURE REVIEWJournal of Research into New MediaConvergence: The International TechnologiesThis very journal is basically an interview which is done by Patrick Crogan to Samuel Weber.The title is Targeting, Television and Networking: An Interview with Samuel Weber.Here a light is thrown on various aspects by the interviewee on the targeting, media andnetworking.According to him;The ‘target’ is someone who doesn’t fit the usual criteria. So one don’t have the same kind of searchprocedures as in the normal hiring process. The target of opportunity can be a function ofaffirmative action policy or be somebody whose qualifications are unusual enough that one wouldnot find them with a regular search process following criteria peculiar to an individual discipline.On the one hand the association of targeting with the aim of controlling the future, controlling theenvironment by identifying a target, localizing it and hitting it or reaching it, depending on whatarea a person is in, and on the other hand the notion of opportunity, which suggests theunpredictable emergence of an event that can’t be entirely planned. The coupling of the two termssuggests that targeting, rather than just designating an abstract activity in which, unencumberedby constraints of time and space, he identify something that he/she wants to accomplish or goalsto be reach and then everything is done to achieve that, involves responding in a very determinatesituation spatially and temporally to an unpredicted, unforeseen event, trying to get that event insome sense under control.The word ‘opportunity’ itself is interesting because it already condenses this idea of theunpredictable, singular event being turned into an occasion to do something else. An opportunitymeans precisely to be able to do something with the event. Quite literally, the word suggests aportal, op-port-unity; a gateway through which one can pass into another domain. The latter can - 49 - The ICFAI School of Marketing Studies
  50. 50. be construed as a realm of goals, and then the opportunity is instrumentalized, like the target. Butit can also suggest an area that may not be definable strictly or primarily in terms of goals, aims orends. In the latter case, you can’t be absolutely sure that you are going to be able to reach yourtarget or even that there is one. So you have this tension between the two terms, target andopportunity.In the financial domain as well, where the maximization of profit in the short term takesprecedence over all other considerations and has come to undermine the very foundations of thecapitalist economy that produced it in the first place. The current financial crisis deriving from theuse of ‘subprime mortgages’ is an excellent example of this tendency. Targeting in this sense seeksto eliminate the uncertainties of time by considering it primarily as ‘short term’ and thus asamenable to the accomplishment of certain goals, the maximization of profit primarily, withoutworrying about what comes next. One reaction to this is the growth of ecological concerns, about‘sustainable’ growth, but these are then quickly exploited by the very same system dominated byfinance capital and short-term profit maximization.Overall, the journal speaks about concept of targeting and opportunities in common.Though the real methodology is not been specified to do targeting but the concepts it hasDiscussed are really helpful for one who wants to do a project on targeting. - 50 - The ICFAI School of Marketing Studies
  51. 51. Culture & PsychologyJOURNAL OF Positioning in Accounting for Redemption and ReconciliationThe journal speaks out the combination of culture and psychology in the regard of Positioning, i.e.;how these both play a vital role while understanding the concept of positioning. The author has triedto clear the concept of positioning through Accounting for Redemption and Reconcialition.The Social Practice of ReconciliationReconciliation is a ubiquitous social phenomenon, woven into the fabric of social lives, and isemblematic of the human condition. It ranges from inter-personal relationships observed in everydaylife to a wider social context of business, economics, politics, government, international relations anddiplomacy.The Concept of PositioningThe concept of positioning is introduced as a metaphor to enable an investigator to grasp howpersons are ‘located’ within conversations as observably and subjectively coherent participants injointly produced storylines. The act of positioning refers to the assignment of ‘parts’ or ‘roles’ tospeakers in the discursive construction of personal stories.Here positioning theory to the analysis has been applied in order to understand the nature of theexperience of reconciliation—what it is to remember the problematic past and what it is to bereconciled with it. Harré and Van Langehove note that there are three ways of expressing andexperiencing one’s personal identity or unique selfhood (Harré & van Langenhove, 1991; vanLangenhove & Harré, 1993). They are by stressing one’s agency in claiming responsibility for someaction; by indexing one’s statements with the point of view one has on their relevant world; or bypresenting a description/evaluation of some past event or episode as a contribution to one’sbiography. I will show in the following analysis of an extract how such indexing and marking of one’sagency are empirically observed in the redemption narrative. - 51 - The ICFAI School of Marketing Studies
  52. 52. Furthermore, Harré and van Langenhove state that the positioning has larger theoreticalimplications for the moral sensibility of a person in taking a particular position in a givenconversational setting.Positioning is a metaphor for oscillating subjectivity located in time and place/space. The utterance isindexed with his or her spatial and temporal location, and as a claim about a state of affairs it isindexed with its speaker’s moral standing (Harré & van Langenhove, 1991, 1999). Such indexingallows us to look at the ways in which a speaker takes responsibility for the reliability of his or herclaim. A discourse produced in the interview is not treated as the single account representing thetruth. The discursive act of positioning thus involves a reconstructive element: the biographies of theone being positioned and the ‘positions’ may be subject to rhetorical redescriptions (van Langenhove& Harré, 1993). The question, then, is to examine how this ‘rewriting’ is understood with regard topersonal identity and selfhood (van Langenhove & Harré, 1993, p. 85).As in recent work exemplified in critical and discursive psychology, positioning does not assume astable, fixed identity or individual state of mind, but is situated in discursive practices. Positioningindeed strikes a chord with this view of multiple, unfixed, fleeing and dynamic identity. Yet, vanLangenhove and Harré identify that ‘[t]here seems to be a tension between the multiplicity of selvesas expressed in discursive practices and the fact that across these discursive practices a relativelystable self-hood exists as well’.Overall all the concepts dealing with the understanding of positioning has been systematically andbeautifully analyzed that even a layman could gain the knowledge. Hence, this article is indeed aperfect help material for a project. - 52 - The ICFAI School of Marketing Studies
  53. 53. RESEARCH METHEDOLOGYObjective of research;  The main objective of this project is concerned with getting the opinion of people regarding Mutual Funds and Life Insurance , to target them and create awareness while with the generation of leads.  I have tried to explore the general opinion about Mutual Funds and Life Insurance. It also covers why/ why not investors are availing the services of financial advisors.  Along with it a brief introduction to India’s largest financial intermediary, RELIANCE MONEY has been given and it is shown that what are mutual funds and life insurance and how they workScope of the study:The research was carried on in the Southern Region of India. It is restricted to Hyderabad.I have visited people randomly nearby my locality, different shopping malls, small retailersetc.Data sources:Research is totally based on primary data. Secondary data can be used only for thereference. Research has been done by primary data collection, and primary data has beencollected by interacting with various people. The secondary data has been collectedthrough various journals and websites and some special publications of R-MONEY. - 53 - The ICFAI School of Marketing Studies
  54. 54. Sampling:  Sampling procedure:The sample is selected in a random way, irrespective of them being investor or not oravailing the services or not. It was collected through mails and personal visits to theknown persons, by formal and informal talks and through filling up the questionnaireprepared. The data has been analyzed by using the measures of central tendencies likeMean, median, mode. The group has been selected and the analysis has been done on thebasis statistical tools available.  Sample size:The sample size of my project is limited to 200 only. Out of which only 135 peopleattempted all the questions. Other 65 not investing in MFs and don’t have a Life Insurancepolicy attempted only 2 questions.  Sample design:Data has been presented with the help of bar graph, pie charts, line graphs etc.  Hypothesis: H0: Targeting and Positioning Strategy based on investment in Mutual Fund and Life Insurances is significant.  Limitation:  Time limitation.  Research has been done only at HYDERABAD. - 54 - The ICFAI School of Marketing Studies
  55. 55.  Some of the persons were not so responsive.  Possibility of error in data collection.Possibility of error in analysis of data due to small sample size. Data Analysis1.Null Hypothesis: The opinion of customers for all positioning factors is Similar.Alternative Hypothesis: The opinion of customers for all positioning Factors is notsimilar.Statistical Test: One way ANOVAAlpha level: .05Confidence value: 2.71Test value: 4.37Result: The test results show that, the opinion of customers for all positioning factors issimilar and can be considered to be true representative of the population. - 55 - The ICFAI School of Marketing Studies
  56. 56. 2. Have you ever invested/ interested to invest in mutual funds or have taken a lifeinsurance policy? YES 135 NO 65 - 56 - The ICFAI School of Marketing Studies
  57. 57. 3. What is the most important reason for not investing in mutual funds or taking a lifeinsurance policy? (Only for above 65 participants) Lack of knowledge about mutual funds/do not like 25 insurance policy? Enjoys investing in other options 10 Its benefits are not enough to drive you for 18 investment No trust over the fund managers and the company 12 - 57 - The ICFAI School of Marketing Studies
  58. 58. 4. Where do you find yourself as a mutual fund investor or an insurance policy owner? Totally ignorant 28 Partial knowledge of MFs 37Aware of only scheme in which invested 46 Good knowledge of MFs 24 - 58 - The ICFAI School of Marketing Studies
  59. 59. 5. Where from you purchases mutual funds and take insurance policies? Directly from the AMCs and Insurance companies 33 Brokers only ( large intermediaries) 28 Broker/ sub-brokers 59 Other sources 15 - 59 - The ICFAI School of Marketing Studies
  60. 60. 6. Which feature of the mutual funds allure you most? Diversification 42 Professional management 29 Reduction in risk and transaction cost 34 Helps in achieving long term goal 30 - 60 - The ICFAI School of Marketing Studies
  61. 61. 7. According to you which are the most suitable stage to invest in mutual funds or take anInsurance policy? Young unmarried stage 55 Young Married with children stage 32 Married with older children stage 21 Pre retirement stage 27 - 61 - The ICFAI School of Marketing Studies
  62. 62. Research findings and conclusions:  As the test result shows that there is significant difference among the opinion of the customers regarding the positioning factors, the following conclusions will elaborate the positioning factors which are given more preference by consumers.  At the survey conducted upon 200 people, 135 (67.5%) are already mutual fund investors/an insurance policy owner or are interested to invest in future or take an insurance policy and the remaining 65 are not interested in doing either of it. So there is enough scope for the company to target those 65 participants (32.5%) to convert them into investors through their convincing power and great communication skills.  Now, when those 65 people were asked about the reason of not investing in mutual funds or taking an Insurance policy, then most of the people held their ignorance responsible for that. They lacked knowledge and information about the mutual funds and were confused due to various Insurance policies available in the market. Whereas just 10 people enjoyed investing in other option. For 18 people, the benefits arousing from these investments were not enough to drive them for investment in MFs and Insurance and 12 people expressed no trust over the fund managers’ decision and the company. Again the financial advisors of the company can tap upon these people by educating them about mutual funds and create trust regarding the investment in an Insurance policy. - 62 - The ICFAI School of Marketing Studies
  63. 63.  Out of the 135 persons who already have invested in mutual funds/or taken an Insurance policy are interested to invest, only 18% have sound knowledge of MFs and various Insurance policies, 34% people are aware of only the schemes in which they have invested. 27% possess partial knowledge whereas 21% stands nowhere in knowledge about MFs and as far as the Insurance polices are concerned they are still confused. 33 participants buy forms directly from the AMCs, 28 from brokers only, 55 from brokers and sub-brokers even then 15 people buy from other sources. The brokers and sub brokers have the maximum reach so they should try to make those investors aware f the happenings, even the AMCs should follow it. When asked about the most alluring feature of MFs, most of them opted for diversification, followed by reduction in risk, helps in achieving long term goals and helps in achieving long term goals respectively. Most of the investor preferred to invest at a young unmarried stage. Even 32 persons were ready to invest at a stage of young married with children but person with older children avoid investing due to increased expenses. But again the number rose to 27 at pre-retirement stage. - 63 - The ICFAI School of Marketing Studies
  64. 64. Recommendations & SuggestionsThe most vital problem spotted is of ignorance. Investors should be made aware of thebenefits. Nobody will invest until and unless he is fully convinced. Investors should be madeto realize that ignorance is no longer bliss and what they are losing by not investing.Mutual funds and Insurance policies offer a lot of benefit which no other single option couldoffer. But most of the people are not even aware of what actually a mutual fund is andmoreover they are still unaware of the combination of Mutual Fund + Insurance Policy, i.e.SIP+INSURE PLAN. They only see it as just another investment option. So the advisors shouldtry to change their mindsets. The advisors should target for more and more young investors.Young investors as well as persons at the height of their career would like to go for advisorsdue to lack of expertise and time.The advisors may try to highlight some of the value added benefits of MFs such as taxbenefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these benefitsare not offered by other options single handedly. So these are enough to drive the investorstowards mutual funds. Investors could also try to increase the spectrum of services offered.Now the most important reason for not availing the services of advisors was spotted wasbeing expensive. The advisors should try to charge a nominal fee at the beginning. But if notpossible then they could go for offering more services and benefits at the existing rate. Theyshould also maintain their decency and follow the code of ethics so that the investors couldtrust upon them. Thus the advisors should try to attract more and more persons and turnthem into investors and finally their clients. - 64 - The ICFAI School of Marketing Studies
  65. 65. Questionnaire: Name : Age : Income per annum : Gender : Occupation : Contact No :  Have you invested /are you interested to invest in mutual funds or to take an Insurance policy? Yes [ ] No [ ] (plz. attempt the next question)  What is the most important reason for not investing in mutual funds and in Insurance policies?Lack of knowledge about mutual funds/insurance [ ]Enjoys investing in other options [ ]Its benefits are not enough to drive you for investment [ ]No trust over the fund managers [ ]  Where do you find yourself as a mutual fund investor/an insurance policy owner?Totally ignorant [ ]Partial knowledge of mutual funds [ ]Aware only of any specific scheme in which you invested [ ]Fully aware [ ] - 65 - The ICFAI School of Marketing Studies
  66. 66.  Where from you purchase mutual funds/insurance policy?Directly from the AMCs [ ]Brokers only [ ]Brokers/ sub-brokers [ ]Other sources [ ]  Which feature of the mutual funds allure you most?Diversification [ ]Professional management [ ]Reduction in risk and transaction cost [ ]Helps in achieving long term goals [ ]  According to you which are the most suitable stage to invest in mutual funds/take an Insurance policy?Young unmarried stage [ ]Young Married with children stage [ ]Married with older children stage [ ]Pre-retirement stage [ ] - 66 - The ICFAI School of Marketing Studies
  67. 67. BibliographyMarket Research (Naresh Malhotra)Consumer BehaviorMarketing Management (Philip Kotler)Websites:www.reliancemoney.comwww.mutualfundsindia.comwww.valueresearchonline.comwww.moneycontrol.comwww.morningstar.comwww.yahoofinance.comwww.theeconomictimes.comwww.rediffmoney.comwww.bseindia.comwww.nseindia.comwww.investopedia.comwww.scribd.comwww.online.sagepub.comwww.google.comwww.reliancemoney.co.in - 67 - The ICFAI School of Marketing Studies
  68. 68. Journals & other references:The Economic Times, Jan 2007 issueR-Money factsheet and journals, year 2006, vol.3, page- 33-45Business Standard, June 2006 issueThe Telegraph, 5th, Feb 2007Business India, September,2004 issueFact sheet and statements of various fund houses.2008Money Today, March, 2007, page 22-31Investment India, June 2005, Page 56-59 - 68 - The ICFAI School of Marketing Studies