A Project Report On Targeting And Positioning Strategy Of Reliance Money

FINAL PROJECT REPORT

ON

“Targeting and Positioning Strategy of Financial
Product/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 Studies

Hyderabad

-1-


FINAL PROJECT REPORT

ON

“Targeting and Positioning Strategy of Financial Product/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)

CORPORATE GUDE: FACULTY GUIDE:

MR. RAVINDER SONI DR. K.RANDHEER

-2-


PREFACE
Private sector is one of the fastest growing sectors in the country. After the Liberalization the Private
industry still holds vast opportunities for young and experienced professionals. On the life insurance
side public sector life insurance Corporation of India is, of course, the largest player with a history of
over 50 years. After Privatization, the PSU has been making efforts to improve efficiency and
customer 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 environment
to its customers .The Reliance Money stock trading websites uses special security features 'Security
Token', which makes you online trading experience more secure without complexity. Reliance ADG
provide the vast opportunities to the new aspirants of the business administration. The financial
Sector is full of competition even if there are a lot of opportunities to the job in Reliance Money and It
is the platform to go on the highest peak in the life of any coming one. Reliance Money is a single
window that provides the multisystem facilities of the financial Products. There are many companies
in the market which are providing the financial product like insurance, demat account services,
mutual funds, general insurance, Portfolio management services(PMS), wealth management, gold
coins, Money changing , Money Transfer, and the others.

Hence Reliance Money provides many financial products on the single window. Reliance money deals
with 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

 IPO's

 Mutual Funds

 Insurance

-3-


AKNOWLADGEMENT
Sometimes words fall short to show gratitude, the same happened with me during this project. The
immense help and support received from Reliance Money Limited overwhelmed me during the
project.

It is a great opportunity for me to work with Reliance money, pioneers in the field of stock trading, a
part of Reliance Capital Ltd. I am extremely grateful to the entire team of Reliance Money at
Hyderabad who have shared their expertise and knowledge with me and without whom the
completion of this project would have been virtually impossible.

My sincere gratitude to Mr. Lalit Soni (Cluster Head, Hyderabad) for providing me with an
opportunity to work with Reliance Money Limited as a company project guide who has provided me
with the necessary information and his valuable suggestion and comments on bringing out this
report in the best possible way.

I am highly indebted to Mr. Ravinder Soni (Relationship Manager of Reliance Money) and company
project guide, who has provided me the necessary information and his valuable suggestion and a
good 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 all
like 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)to
work upon in Reliance Money . I am also thankful to other associates (PFA) who had helped me in this
project.

I express my sincere gratitude to our Director Dr.T.R.K Rao and Dean Dr.K.Rajanath for allowing me
to carry on this project.

-4-


INDEX
S.NO CONTENTS PAGE NO

1 ABSTRACT 6

2 SCOPE OF THE STUDY 7

3 INTRODUCTION: TARGETING & POSITIONING STRATEGY 8-10
OF R-MONEY

4 COMPANY PROFILE, SCOPE OF STUDY, OBJECTIVES, 11-41
MUTUAL FUND, LIFE INSURANCE,

5 MY WORK AT RELIANCE MONEY 42-48

6 LITERATURE REVIEW 49-52

7 RESEARCH AND METHEDO LOGY 53-55

8 DATA ANALYSIS 55-61

9 RESEARCH FINDINGS 62-63

10 SUGGESTIONS AND RECOMMENDATIONS 64

11 QUESTIONNAIRE 65-66

12 BIBLIOGRAPHY, JOURNALS AND OTHER REFERENCES 67-68

-5-


ABSTRACT

This project has been a great learning experience for me; at the same time it gave me
enough scope to implement my analytical ability. This project as a whole can be divided into
two 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-


SCOPE OF THE STUDY

The 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 to
focus.

During the MSP days the volunteer need to find out the corporate strategies of the running
company and the mile stone which the company has covered during its journey. In the
summer training, it is necessary for the student that he /she involve with the experience
guys to get the knowledge about the company. That is how the company has got the
success, 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 Indian
companies. 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 is
a growing company in the financial products.

Reliance Anil Dhirubhai Ambani group is also deals in communication, energy, natural
resources, media, and entertainment, healthcare and infrastructure.

-7-


INTRODUCTION

TARGETING DONE BY RELIANCE MONEY
Reliance 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-


POSITIONING DONE BY RELIANCE MONEY

Positioning is the next step after Targeting. Here for this purpose Reliance Money has done
various activities (like as some of which are done in their promotional activities) some of
which 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-


AN EXAMPLE:

A bundle of hundred rupee notes, a huge chain with a sizeable padlock and a few words
were quite enough for the ADAG led Reliance Mutual Funds to unlock its ideas before its
target group. A large safe kept at suburban railways stations in Mumbai grabbed just the
right 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 to
communicate its message to investors. Hoardings sporting bundles of hundred rupee notes
that were chained and locked were set up at important locations such as Mahim, Bandra
Kurla Complex and Worli. The tagline read: ‘Unlock your money’s potential’. It was a clear
call to investors who store their money in fixed deposit schemes and other less productive
options.An extensive and expansive outdoor campaign was conducted by Reliance with this
latest strategy. The campaign included ground level activities at crowded public places and
micro 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 awareness
among the investing populace.”
By way of brief, Reliance told the agency that it wanted a disruptive way of targeting
investors. The disruption is in the form of standing out starkly and being noticed as a better
option to just banking.
Gugnani continues, “The objective was to bring to people’s attention that instead of money
lying 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 line
as the hoarding. The safe deposit box was strategically placed at crowded places such as
railway stations, bus stops and car parks. Road shows and a moving billboard were also part
of the campaign. Pamphlets were distributed at the venues to educate prospective investors
about Reliance’s various systematic investment plans.
The campaign has been carried out only in Mumbai as of now. Plans to launch it in other
metros such as Delhi, Bangalore and Kolkata have been voiced. Smaller cities such as
Chandigarh, Vadodara, Nasik and Guwahati are also on the list. There are also other
campaigns in the offing, which will be released soon. So from the above example it is clear
that the company always do something unique to attract people.

- 10 -


COMPANY PROFILE

- 11 -


About Reliance Money in brief

Reliance Capital

Reliance
Reliance Reliance Reliance Reliance
Consumer
General Insurance Life Insurance Money
Mutual fund Finance

Reliance money is a part of the reliance Anil Dhirubhai Ambani Group and is promoted by
Mutual Fund
Reliance capital, the fastest growing private sector financial services company in India, ranked
amongst 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 out
trading and investment activities in a secure, cost-effective and convenient manner. Through
reliance money, you 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 &
Money changing.

Reliance Money offers the convenience of on-line and offline transactions through a variety of
means, including its Portal, Call & Transact, Transaction Kiosks and at it’s network of affiliates.

Some key steps of the company that are as…..

- 12 -


“Success is a journey, not a destination.” If we look for examples to prove this quote then we

can find many but there is none like that of Reliance Money. The company which 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 it namely

Trust, Integrity, Dedication, Commitment, Enterprise, Hard work,
Home work, Team work play, Learning and Innovation, Empathy
and Humility and last but not the least it’s the Network .

These are the values that bind success with Reliance Money.

 Vision of Reliance Money
To achieve & sustain market leadership, Reliance Money shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide world class quality
services. In the process Reliance Money shall strive to meet and exceed customer's satisfaction and
set industry standards.

 Mission statement:
“Our mission is to be a leading and preferred service provider to our

customers, and we aim 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.”

- 13 -


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 -


PARTNERS OF COMPANY

- 15 -


Equity
Reliance Money offers its clients competitively priced Equity broking, PMS and Portfolio Advisory
Services. Trading execution assistance provided to clients. In addition Reliance Money provides
independent and unbiased view on markets along with trading strategies and entry / exit points
for taking an informed decision.

Mutual Funds
A mutual fund is a professionally managed fund of collective investments that collects money from
many investors and puts it in stocks, bonds, short-term money market instruments, and/or other
securities.
Reliance Money offers dedicated research & expert advice on Mutual Funds. Mutual funds are
considered to have low risk factors owing to diversification of assets into various sectors and
scripts or instruments within.

Insurance

Life-Insurance
Reliance Money assists its clients in choosing a customized plan which will secure the family’s
future and their expenses post-retirement. Clients can choose from different plans of almost all
Insurance Companies where they can invest their money. Clients can choose from products and
services that channelise their savings and protect their needs while guaranteeing security and
returns for life. A team of experts will suggest the best Insurance scheme which suits the client’s
requirement.

- 16 -


General Insurance
General Insurance is all about protecting against all kind of insurable risks. Reliance Money assists
you in areas of Health insurance, Travel insurance, Home insurance and Motor insurance.

Commodities
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 Funds, Overseas Investments and Infrastructure Investments.

Tax Planning
With a view to provide complete wealth management solutions, Reliance Money’s wealth
management offerings include tax related services like:
Tax Planning & advisory
Filing Tax returns for individuals

Real Estate Advisory Services
Broking Model for lease/rent and buy/sell of property
Property Valuation
Real-estate Consulting – Corporate earnings model, Lease rentals, etc.

Offshore Investments
Reliance Money provides a unique opportunity to invest in international financial markets through
the online platform which includes different product ranges.

- 17 -


MUTUAL FUNDS – AN UNDERSTANDING

Like most developed and developing countries the mutual fund cult has been catching on
in India. There are various reasons for this. Mutual funds make it easy and less costly for investors
to 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 money
management to the individual investor, providing an opportunity for financial success that was
once available only to a select few.

Understanding Mutual funds is easy as it's such a simple concept: a mutual fund is a
company that pools the money of many investors -- its shareholders -- to invest in a variety of
different securities. Investments may be in stocks, bonds, money market securities or some
combination 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 the
securities are sold, but subject to any losses in value as well.

For the individual investor, mutual funds provide the benefit of having someone else
manage your investments and diversify your money over many different securities that may not be
available or affordable to you otherwise. Today, minimum investment requirements on many
funds 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 different
securities. Beyond that, there are many different types of mutual funds with different objectives
and levels of growth potential, furthering your chances to diversify.

- 18 -


The Concept of Mutual Fund

A mutual fund is a common pool of money into which investors place their contributions that are
to 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 India
The origin of mutual fund industry in India is with the introduction of the concept of mutual fund
by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when
non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen a dramatic improvement, both quality
wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase, the
Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund family raised
the 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 than
the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking
industry.

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 the
prime responsibility of all mutual fund companies, to market the product correctly abreast of
selling.

The mutual fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.

- 19 -


First Phase - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. 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 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)

Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can bank 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 in 1989 and GIC in 1990. The
end 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 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
- 20 -


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

This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the
Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores (as on January
2003). 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 Ltd, 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 AUM and with the setting up of a UTI
Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered its current phase
of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage
assets of Rs.153108 crores under 421 schemes.

- 21 -


GROWTH IN ASSETS UNDER MANAGEMENT

Note:
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit
Trust of India effective from February 2003. The Assets under management of the Specified
Undertaking of the Unit Trust of India has therefore been excluded from the total assets of the
industry as a whole from February 2003 onwards.

Mutual Fund Companies in India

The concept of mutual funds in India dates back to the year
1963. The era between 1963 and 1987 marked the existance
of only one mutual fund company in India with Rs. 67bn assets under management (AUM), by the
end of its monopoly era, the Unit Trust of India (UTI). By the end of the 80s decade, few other
mutual 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 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 the
fund 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 in
1996.

Kothari Pioneer was the first private sector mutual fund company in India which has now merged
with Franklin Templeton. Just after ten years with private sector players penetration, the total
assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund companies in India.

Major Mutual Fund Companies in India

ABN AMRO Mutual Fund

ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee (India) Pvt. Ltd. as
the Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd. was incorporated on
November 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund.

Birla Sun Life Mutual Fund

Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. Sun
Life 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 Fund
follows a conservative long-term approach to investment. Recently it crossed AUM of Rs. 10,000
crores.

Bank of Baroda Mutual Fund (BOB Mutual Fund)

Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under the
sponsorship of Bank of Baroda. BOB Asset Management Company Limited is the AMC of BOB
- 23 -


Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the custodian.

HDFC Mutual Fund

HDFC Mutual Fund was setup on June 30, 2000 with two sponsorers namely Housing Development
Finance Corporation Limited and Standard Life Investments Limited.

HSBC Mutual Fund

HSBC 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 Company
of HSBC Mutual Fund.

ING Vysya Mutual Fund

ING Vysya Mutual Fund was setup on February 11, 1999 with the same named Trustee Company. It
is a joint venture of Vysya and ING. The AMC, ING Investment Management (India) Pvt. Ltd. was
incorporated on April 6, 1998.

Prudential ICICI Mutual Fund

The mutual fund of ICICI is a joint venture with Prudential Plc. of America, one of the largest life
insurance 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 is
Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company Limited
Incorporated on 22nd of June, 1993.

Sahara Mutual Fund

Sahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial Corporation Ltd. as
the sponsor. Sahara Asset Management Company Private Limited incorporated on August 31,
- 24 -


1995 works as the AMC of Sahara Mutual Fund. The paid-up capital of the AMC stands at Rs 25.8
crore.

State Bank of India Mutual Fund

State 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 Bank
sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15 have
already 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 Fund

Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsorers for Tata
Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manager is
Tata Asset Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset
Management Limited's is one of the fastest in the country with more than Rs. 7,703 crores (as on
April 30, 2005) of AUM.

Kotak Mahindra Mutual Fund

Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. It is presently
having more than 1, 99,818 investors in its various schemes. KMAMC started its operations in
December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with varying
risk - return profiles. It was the first company to launch dedicated gilt scheme investing only in
government securities.

Unit Trust of India Mutual Fund

UTI Asset Management Company Private Limited, established in Jan 14, 2003, manages the UTI
Mutual Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management
- 25 -


Company presently manages a corpus of over Rs.20000 Crore. The sponsorers of UTI Mutual Fund
are Bank of Baroda (BOB), Punjab National Bank (PNB), State Bank of India (SBI), and Life
Insurance Corporation
of India (LIC). The schemes of UTI Mutual Fund are Liquid Funds, Income Funds, Asset
Management Funds, Index Funds, Equity Funds and Balance Funds.

Standard Chartered Mutual Fund

Standard Chartered Mutual Fund was set up on March 13, 2000 sponsored by Standard Chartered
Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset
Management Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December
20,1999.

Franklin Templeton India Mutual Fund

The group, Franklin Templeton Investments is a California (USA) based company with a global
AUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups in the
world. Investors can buy or sell the Mutual Fund through their financial advisor or through mail or
through their website. They have Open end Diversified Equity schemes, Open end Sector Equity
schemes, Open end Hybrid schemes, Open end Tax Saving schemes, Open end Income and Liquid
schemes, Closed end Income schemes and Open end Fund of Funds schemes to offer.

Morgan Stanley Mutual Fund India

Morgan Stanley is a worldwide financial services company and it’s leading in the market in
securities, investment management and credit services. Morgan Stanley Investment Management
(MISM) was established in the year 1975. It provides customized asset management services and
products to governments, corporations, pension funds and non-profit organizations. Its services
are also extended to high net worth individuals and retail investors. In India it is known as Morgan
Stanley Investment Management Private Limited (MSIM India) and its AMC is Morgan Stanley
Mutual Fund (MSMF). This is the first close end diversified equity scheme serving the needs of
- 26 -


Indian retail investors focusing on a long-term capital appreciation.

Escorts Mutual Fund

Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its sponsor. The
Trustee 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 Fund

Alliance Capital Mutual Fund was setup on December 30, 1994 with Alliance Capital Management
Corp. of Delaware (USA) as sponsored. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the
Alliance Capital Asset Management India (Pvt) Ltd. with the corporate office in Mumbai.

Benchmark Mutual Fund

Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt. Ltd. as the
sponsored and Benchmark Trustee Company Pvt. Ltd. as the Trustee Company. Incorporated on
October 16, 2000 and headquartered in Mumbai, Benchmark Asset Management Company Pvt.
Ltd. is the AMC.

Canbank Mutual Fund

Canbank 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. The
Corporate Office of the AMC is in Mumbai.

Chola Mutual Fund

Chola 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 -


Cholamandalam AMC Limited.

LIC Mutual Fund

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed Rs. 2
Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in accordance
with the provisions of the Indian Trust Act, 1882. . The Company started its business on 29th April
1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management
Company Ltd as the Investment Managers for LIC Mutual Fund.

GIC Mutual Fund

GIC Mutual Fund, sponsored by General Insurance Corporation of India (GIC), a Government of
India undertaking and the four Public Sector General Insurance Companies
, viz. National Insurance Co. Ltd (NIC), The New India Assurance Co. Ltd. (NIA), The Oriental
Insurance Co. Ltd (OIC) and United India Insurance Co. Ltd. (UII) and is constituted as a Trust in
accordance with the provisions of the Indian Trusts Act, 1882.

Future of Mutual Funds in India
By December 2004, Indian mutual fund industry reached Rs 1, 50,537 crore. It is estimated that by
2010 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 5
years we have seen annual growth rate of 9%. According to the current growth rate, by year 2010,
mutual fund assets will be double.

- 28 -


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
04

Deposits 605410 851593 989141 1131188 1280853 - 1567251 1622579

Change in % over last
15 14 13 12 - 18 3
yr

Source - RBI

Mutual Fund AUM’s Growth

Month/Year Mar-98 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Sep-04 4-Dec

MF AUM's 68984 93717 83131 94017 75306 137626 151141 149300

Change in % over last yr 26 13 12 25 45 9 1

Source - AMFI

Some 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 -


 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 MF's 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 -


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 professional
management. A good investment manager is certainly worth the fees you will pay. Good mutual
fund managers with an excellent research team can do a better job of monitoring the companies
they have chosen to invest in than you can, unless you have time to spend on researching the
companies you select for your portfolio. That is because Mutual funds hire full-time, high-level
investment 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 most
cost-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 Fund

Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai Ambani Group, is India's
leading Mutual Fund, with average Assets under Management of Rs. 90,813 crores for the month of
June 2008, and an investor base of over 6.7 million. Reliance Mutual Fund offers investors a well
rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a
presence in 300 cities across the country and constantly endeavors to launch innovative products
and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are
managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance
Capital Ltd.

- 31 -


Types of Mutual Funds on the Basis of Risk Vs Return

Sector Funds

Diversified Equity
R Funds

e Balanced Funds

MIPs
t
Gilt Funds
u
Income Funds
r
Floaters
n
Money Market Funds
s

Risk

- 32 -


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 Fund

There 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 that
is 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 amounts
invested regularly can grow substantially. SIP gives a clear picture of how an early and regular
investment can help the investor in wealth creation. Due to its unlimited advantages SIP could be
- 33 -


Redefined as “a methodology of fund investing regularly to benefit regularly from the stock market
volatility. In the later sections we will see how returns generated from some of the SIPs have
outperformed their benchmark. But before moving on to that lets have a look at some of the top
performing SIPs and their return for 1 year:

Scheme Amount NAV NAV Date Total Amount

Reliance diversified power sector
retail 1000 62.74 30/5/2008 14524.07

Reliance regular savings equity 1000 22.208 30/5/2008 13584.944

principal global opportunities fund 1000 18.86 30/5/2008 14247.728

DWS investment opportunities fund 1000 35.31 30/5/2008 13791.157

BOB growth fund 1000 42.14 30/5/2008 13769.152

In the above chart, we can see how if we start investing Rs.1000 per month then what return we’ll
get for the total investment of Rs. 12000. There is reliance diversified power sector retail giving the
maximum returns of Rs. 2524.07 per year which comes to 21% roughly. Next we can see if anybody
would have undertaken the SIP in Principal would have got returns of app. 18%. We can see
reliance regular savings equity, DWS investment opportunities and BOB growth fund giving
returns of 13.20%, 14.92%, and 14.74% respectively which is greater than any other monthly
investment options. Thus we can easily make out how SIP is beneficial for us. Its hassle free, it
forces 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 fixed
deposits In a tabular format as well as graphical.

- 34 -


Working of a Mutual Fund

Advantages 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: It's easy to get your money out of a mutual fund. Write a check, make a call, and
you've got the cash.

 Convenience: You can usually buy mutual fund shares by mail, phone, or over the Internet.

- 35 -


 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 regulated

Drawbacks of Mutual Funds

Mutual 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 don't 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 -


Basics of Life Insurance

What is Life Insurance?

An amount of money paid to someone (called beneficiary) when the Life Assured (in whose name
the insurance policy is taken) dies. This amount can be used to pay the expenses related to Life
assureds death or can be invested to generate income that will replace your salary. Life Insurance
is 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 ones

Types 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 etc
Annuities & Pension.

- 37 -


Products of Life Insurance
Life Insurance products are usually referred to as ‘plans’ of insurance. These plans have two basic
elements; one is the “Death Cover” providing for the benefits being paid on the death of the insured
person within a specified period. The other is the “Survival Benefit” providing for the benefit being
paid 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”
Plans

Term Life Insurance

Term Life Insurance provides protection for a specified period of time. A death benefit is paid to
the beneficiary if the insured dies within a specified period of time while the policy is still in force.

Whole Life Insurance

Whole Life insurance is a permanent life insurance and provides protection for life. As long as
premiums are paid, a death benefit is paid to the beneficiary.

ULIPs

A ULIP is a life insurance which provides a combination of Life Insurance protection and
investment. Money can be invested in the following fund:- Equity Fund, Debt Fund, Money Market
Fund (Liquid Fund) and Balance Fund.

Annuities

Annuities are practically the same as pension. Pension provides periodical payments to the
employees, who have retired. They are paid as long as the recipient is alive. Annuities are
called the “reverse” of Life Insurance.

- 38 -


VARIOUS INSURANCE PLANS OFFERED BY RELIANCE MONEY (i.e. of RELIANCE
LIFE INSURANCE)

 Protection Plans
Protects family even when you’re not around by investing in Reliance Protection Plans. Choose a
limited period plan or a lifetime protection plan depending on your needs. The latest Protection
Plans 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 Plans
Reliance Savings & Investment Plans help you to set aside some money to achieve specific goals in
life, which means that you can enjoy life and provide for your family’s daily needs. The savings and
investment Plans are as below…

1. Reliance Total Investment Plan Series I - Insurance
3. Reliance Automatic Investment plan
4. Reliance Money Guarantee plan

- 39 -


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 Plans
Invest today in Reliance Retirement Plans and save money to enjoy life even after retirement. You
will never have to depend on another person or make any compromises to maintain your current
lifestyle. 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
6. Reliance Automatic Investment Plan
7. Reliance Money Guarantee Plan

 Child Plans
Save systematically and secure your child’s future needs by investing in Reliance Child Plans. You
can 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

- 40 -


Market Return Plan

Under 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 years

WHAT IS THE POLICY TERM

Minimum policy term 5 years
Maximum policy term 40 years

- 41 -


MY WORK AT RELIANCE MONEY

During the MSP period of 3 month i.e. from 24th July to 24th October I have gone through
various 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 its
differential financial products/services as well as to create Awareness about the company
and 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 -


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) years

2. Education Level

3. Gender:  Male and Female

4. 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 -


Given below are some facts and comparison of Mutual Funds with other investment is
mentioned 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 -


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 High

Mutual 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 -


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 -


METHODOLOGY

AGE STATUS INSURANCE SUGGESTED
NEEDS
PRODUCTS

18yrs - 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, high
25yrs -30yrs Married expenditure Phase
Temporary term or whole
2.Family dependency on
your income life Product
3.Low accumulated
wealth
4.Need for Planning
Requirement

30yrs - 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 annuities
60yrs 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 -


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 financial
Savera has just come to Protection if I do not return from
our lives. As proud one voyage Worked for almost 25
parents, We need to years, now want to
protect her as well as live…. I want something
create her own financial
that will make my life
standing
Chinta (tension)-free
after my retirement….

- 48 -


LITRATURE REVIEW

Journal of Research into New Media
Convergence: The International Technologies

This 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 and
networking.
According to him;

The ‘target’ is someone who doesn’t fit the usual criteria. So one don’t have the same kind of search
procedures as in the normal hiring process. The target of opportunity can be a function of
affirmative action policy or be somebody whose qualifications are unusual enough that one would
not 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 the
environment by identifying a target, localizing it and hitting it or reaching it, depending on what
area a person is in, and on the other hand the notion of opportunity, which suggests the
unpredictable emergence of an event that can’t be entirely planned. The coupling of the two terms
suggests that targeting, rather than just designating an abstract activity in which, unencumbered
by constraints of time and space, he identify something that he/she wants to accomplish or goals
to be reach and then everything is done to achieve that, involves responding in a very determinate
situation spatially and temporally to an unpredicted, unforeseen event, trying to get that event in
some sense under control.
The word ‘opportunity’ itself is interesting because it already condenses this idea of the
unpredictable, singular event being turned into an occasion to do something else. An opportunity
means precisely to be able to do something with the event. Quite literally, the word suggests a
portal, op-port-unity; a gateway through which one can pass into another domain. The latter can
- 49 -


be construed as a realm of goals, and then the opportunity is instrumentalized, like the target. But
it can also suggest an area that may not be definable strictly or primarily in terms of goals, aims or
ends. In the latter case, you can’t be absolutely sure that you are going to be able to reach your
target or even that there is one. So you have this tension between the two terms, target and
opportunity.
In the financial domain as well, where the maximization of profit in the short term takes
precedence over all other considerations and has come to undermine the very foundations of the
capitalist economy that produced it in the first place. The current financial crisis deriving from the
use of ‘subprime mortgages’ is an excellent example of this tendency. Targeting in this sense seeks
to eliminate the uncertainties of time by considering it primarily as ‘short term’ and thus as
amenable to the accomplishment of certain goals, the maximization of profit primarily, without
worrying 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 by
finance 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 has
Discussed are really helpful for one who wants to do a project on targeting.

- 50 -


Culture & Psychology

JOURNAL OF Positioning in Accounting for Redemption and Reconciliation

The 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 tried
to clear the concept of positioning through Accounting for Redemption and Reconcialition.

The Social Practice of Reconciliation

Reconciliation is a ubiquitous social phenomenon, woven into the fabric of social lives, and is
emblematic of the human condition. It ranges from inter-personal relationships observed in everyday
life to a wider social context of business, economics, politics, government, international relations and
diplomacy.

The Concept of Positioning

The concept of positioning is introduced as a metaphor to enable an investigator to grasp how
persons are ‘located’ within conversations as observably and subjectively coherent participants in
jointly produced storylines. The act of positioning refers to the assignment of ‘parts’ or ‘roles’ to
speakers in the discursive construction of personal stories.

Here positioning theory to the analysis has been applied in order to understand the nature of the
experience of reconciliation—what it is to remember the problematic past and what it is to be
reconciled with it. Harré and Van Langehove note that there are three ways of expressing and
experiencing one’s personal identity or unique selfhood (Harré & van Langenhove, 1991; van
Langenhove & Harré, 1993). They are by stressing one’s agency in claiming responsibility for some
action; by indexing one’s statements with the point of view one has on their relevant world; or by
presenting a description/evaluation of some past event or episode as a contribution to one’s
biography. I will show in the following analysis of an extract how such indexing and marking of one’s
agency are empirically observed in the redemption narrative.

- 51 -


Furthermore, Harré and van Langenhove state that the positioning has larger theoretical
implications for the moral sensibility of a person in taking a particular position in a given
conversational setting.

Positioning is a metaphor for oscillating subjectivity located in time and place/space. The utterance is
indexed with his or her spatial and temporal location, and as a claim about a state of affairs it is
indexed with its speaker’s moral standing (Harré & van Langenhove, 1991, 1999). Such indexing
allows us to look at the ways in which a speaker takes responsibility for the reliability of his or her
claim. A discourse produced in the interview is not treated as the single account representing the
truth. The discursive act of positioning thus involves a reconstructive element: the biographies of the
one 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 to
personal identity and selfhood (van Langenhove & Harré, 1993, p. 85).

As in recent work exemplified in critical and discursive psychology, positioning does not assume a
stable, fixed identity or individual state of mind, but is situated in discursive practices. Positioning
indeed strikes a chord with this view of multiple, unfixed, fleeing and dynamic identity. Yet, van
Langenhove and Harré identify that ‘[t]here seems to be a tension between the multiplicity of selves
as expressed in discursive practices and the fact that across these discursive practices a relatively
stable self-hood exists as well’.

Overall all the concepts dealing with the understanding of positioning has been systematically and
beautifully analyzed that even a layman could gain the knowledge. Hence, this article is indeed a
perfect help material for a project.

- 52 -


RESEARCH METHEDOLOGY

Objective 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 work

Scope 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 retailers
etc.

Data sources:

Research is totally based on primary data. Secondary data can be used only for the
reference. Research has been done by primary data collection, and primary data has been
collected by interacting with various people. The secondary data has been collected
through various journals and websites and some special publications of R-MONEY.

- 53 -


Sampling:

 Sampling procedure:

The sample is selected in a random way, irrespective of them being investor or not or
availing the services or not. It was collected through mails and personal visits to the

known persons, by formal and informal talks and through filling up the questionnaire
prepared. The data has been analyzed by using the measures of central tendencies like

Mean, median, mode. The group has been selected and the analysis has been done on the
basis statistical tools available.

 Sample size:

The sample size of my project is limited to 200 only. Out of which only 135 people
attempted all the questions. Other 65 not investing in MFs and don’t have a Life Insurance
policy 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 -


 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 Analysis
1.

Null Hypothesis: The opinion of customers for all positioning factors is Similar.

Alternative Hypothesis: The opinion of customers for all positioning Factors is not
similar.

Statistical Test: One way ANOVA

Alpha level: .05

Confidence value: 2.71

Test value: 4.37

Result: The test results show that, the opinion of customers for all positioning factors is
similar and can be considered to be true representative of the population.

- 55 -


2. Have you ever invested/ interested to invest in mutual funds or have taken a life
insurance policy?

YES 135
NO 65

- 56 -


3. What is the most important reason for not investing in mutual funds or taking a life
insurance 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 -


4. Where do you find yourself as a mutual fund investor or an insurance policy owner?

Totally ignorant 28

Partial knowledge of MFs 37
Aware of only scheme in which invested 46
Good knowledge of MFs 24

- 58 -


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 -


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 -


7. According to you which are the most suitable stage to invest in mutual funds or take an
Insurance policy?

Young unmarried stage 55

Young Married with children stage 32
Married with older children stage 21
Pre retirement stage 27

- 61 -


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 -


 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 -


Recommendations & Suggestions

The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should be made
to 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 could
offer. But most of the people are not even aware of what actually a mutual fund is and
moreover 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 should
try 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 advisors
due to lack of expertise and time.

The advisors may try to highlight some of the value added benefits of MFs such as tax
benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these benefits
are not offered by other options single handedly. So these are enough to drive the investors
towards 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 was
being expensive. The advisors should try to charge a nominal fee at the beginning. But if not
possible then they could go for offering more services and benefits at the existing rate. They
should also maintain their decency and follow the code of ethics so that the investors could
trust upon them. Thus the advisors should try to attract more and more persons and turn
them into investors and finally their clients.

- 64 -


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 -


 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 -


Bibliography
Market Research (Naresh Malhotra)

Consumer Behavior

Marketing Management (Philip Kotler)

Websites:

www.reliancemoney.com

www.mutualfundsindia.com

www.valueresearchonline.com

www.moneycontrol.com

www.morningstar.com

www.yahoofinance.com

www.theeconomictimes.com

www.rediffmoney.com

www.bseindia.com

www.nseindia.com

www.investopedia.com

www.scribd.com

www.online.sagepub.com

www.google.com

www.reliancemoney.co.in

- 67 -


Journals & other references:

The Economic Times, Jan 2007 issue

R-Money factsheet and journals, year 2006, vol.3, page- 33-45

Business Standard, June 2006 issue

The Telegraph, 5th, Feb 2007

Business India, September,2004 issue

Fact sheet and statements of various fund houses.2008

Money Today, March, 2007, page 22-31

Investment India, June 2005, Page 56-59

- 68 -


A Project Report On Targeting And Positioning Strategy Of Reliance Money

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to A Project Report On Targeting And Positioning Strategy Of Reliance Money

Similar to A Project Report On Targeting And Positioning Strategy Of Reliance Money (20)

A Project Report On Targeting And Positioning Strategy Of Reliance Money