This report only prepared for my academic requirement not for any other purpose. It might not be used with the interest of opposite party of the corporation.
under tjis report cover my internship industry introduction, company introduction, and marketing department.
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Reliance mutual fund intrenship report
1. MEDI-CAPSUNIVERSITY
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INTRENSHIP REPORT
Submitted By
AKSHAT SHAH
MS16MS501011
Under guidance of
MANISH JAIN
Relationship Manager
Submitted in Partial Fulfilment of the requirements
of Medi-caps unversity for the Award of the degree in
Master of Business Administration
DEPARTMENT OF MANAGEMENT AND COMMERCE
MEDI-CAPS UNIVERSITY
INDORE
2016-2018
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ACKNOWLEDGMENT
Thisreportbears the imprintof manypeople rightfromthe experiencedstaff of Reliance Mutual
Fund,to the staff of Indore Medi-capsUniversitywithoutwhosesupportandguidance Iwouldhave
not be unique opportunitytosuccessfullycompletemyinternshipinthisesteemedorganization.I
take thisopportunitytoexpressmydeepgratitude toall the employeeof, Reliance Mutual Fund,
Indore.AlsoI am indebtedforthe richguidance knowledgeandsuggestionsprovidedbymyguide,
Mr. Manish Jain whotooksincere effortandillustratedthe marketingconceptof financial products
withtheirvastknowledge inthe fieldwhichhelpedme incarryingout my internship.Ihadleg-upof
undertakingthe internshipatreliance mutualfundlastbutnotlest.Ialso thankall those people
whomI metin the industryduringmyinternshipandhelpedme toaccomplishmyassignmentinthe
mostefficientandeffective manner.
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DECLARATION
I, Akshat Shah, herebydeclare thatthe presentedreportof internshipat“RELIANCE MUTUAL
FUND” is uniquelypreparedbyme afterthe completionof twomonths’workat RELIANCE
MUTUAL FUNDINDORE.
I also confirm that, the report is only prepared for my academic requirement not for
any other purpose. It might not be used with the interest of opposite party of the
corporation.
……………………………
AKSHAT SHAH
MS16MS501011
MBA
MEDI-CAPS UNIVERSITY
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TABLE OF CONTENTS
ACKNOWLEDGEMENT…………………………………………………………….. 2
DECLATION…………………………………………………………………………...... 3
CERTIFICATE………………………………………………………………………....... 4
EXECUTIVE SUMMARY…………………………………………………………….. 6
1. INTRODUCTION
1.1 Internship objective……………………………………………………….. 8
1.2 Scope of the study ………………………………………………………... 8
1.3 Time frame ……………………………………………………………….. 9
1.4 Limitation ………………………………………………………………… 9
2. PRESENTATION OF DATA ANALYSIS AND INTERPREATION
2.1 Industry profile ……………………………………………………………. 11
2.2 Company profile ………………………………………………………….. 22
2.3 Marketing department …………………………………………………….. 27
3. FINDING AND CONLUSIONS
3.1 Learning outcomes………………………………………………………… 32
3.2 Recommendation…………………………………………………………. 32
3.3 Conclusions ……………………………………………………………….. 32
4. BIBLIOGRAPHY…………………………………………………………….. 34
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EXECUTIVE SUMMARY
The project work ispursued asa partof MBACurriculum at“Medi-caps University”. Itis
undertaken as a traineeship at Reliance Mutual Fund. Theproject isdone under expert
supervision and guidance of Mr.Manish Jain (senior relationship manager, Reliance mutual
fund) The Project isabout thestudyof marketing and sales offinancial products and alsothe
efforts done tomake improvements inthe customer acquisition process for better results.
At Reliance MutualFund, initially the trainees were imparted process and product
knowledge. They were given sufficient time toknow abouttheproducts and alsoabout sales and
distribution channel. They had towork withthe sales representatives of theDistributor andthink
of waysof improving thesales and distribution channel andimplementing them. The mainaim
was toincrease sales and forthisdifferent wayswere tried and implemented. They were
provided with database and hadtomakecold calls fromthe data. Company activity was alsoone
of themajor sources for generating business. Initially they even accompanied sales
representatives tothe clients place. Main objective wasto knowthe need ofthecustomer and
how tofulfill thatinthe best way. The project dealt with Mutual Funds
Thus itgave trainees theopportunity tolearn aboutall theproducts andwith the rangeof
products Reliance MutualFund offered itmade thetaska biteasier aswe could fulfill the need of
the customer ina better way. Our taskwas divided in 3phases:
1.Product knowledge: Thisincluded the theoretical knowledge about the field and products
which needed tobemarketed.
2.Pitching inbanking sector: Thisincluded the implementation of theknowledge imparted tous
and thetest ofour marketing skills.Initially we were accompanied byother sales executive sothat
wecan learn how todeal withthe customers and understand theirneed. Thisalso enhanced our
interpersonal skillsand confidence level.
3.Implementation in banking sector and pitch customer: By the start of this phase we were
confident enough about thepitching and fulfilling theneeds of thecustomer in thebanking
sector. Thisalso included of the wayswe should pitch thecustomer.
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Whether it’s retiring early, saving for children’s education, paying off a loan or to live a
secured and satisfied life everyone has dreams they can achieve by investing their savings.
However, the question that arises is that, should one leave his money tucked away in the bank or
plough it into the stock market where the potential for higher returns is greater but the chances of
losing money is higher? Deciding where to invest depends onone’s attitude towards risk (one’s
capacity to take risk and one’s tolerance towards risk) and the investment horizon and non-availability
of guaranteed-return investment products. In such a scenario, investing in equity, which offers returns
that are higher than the inflation rate, help to build wealth and to improve the standard of living.
It is fine that stock market fluctuates over time. At present asfar asthe world economy is concerned it
is onaboom. As soon as globalization and liberalization has come into act it has well shaped
the economy. India has turned out to be the hot destination for the money investors and this has
resulted growth in the sensex .Itwas never hoped before that BSEwill ever touch the mark of 16000
points. But only due to the new economic opportunities and the confidence of people in
India’s economic future it has been successful. Investing in equity is the way to earn money
and to fulfil the dreams. The risk involved with investing in equity can be moderated by careful
stock selection and close monitoring.
1.INTERNSHIP OBJECTIVE:
The purpose of industrial training is to expose student to real work of environment experience
and at same time to gain the knowledge through hand on observation and job execution. From
the industrial training, the student will also develop in work ethics, communication,
management and other. Moreover, this practical training program allow student to relate
theoretical knowledge. The objective of industrial training is:
To provide student the opportunity to test their interest in a particular career before
commitments are made.
To develop skill in the application of theory to practical work situations.
To develop skill and techniques directly applicable to their careers.
Internship will increase a student’s sense of responsibility and good work habits.
To expose student to real work environment experience gain knowledge in writing
report technical work/project.
Internship student will have higher levels of academic performance.
Internship program will increase student earning potential upon graduation.
To build the strength, teamwork spirit and self- confident in student life.
To enhance the ability to improve student creativity skill and sharing ideas.
To build a good communication skill with group of workers and learn to learn proper
behaviour of corporate life in industry sector.
The student will be able instilled with good moral values such as responsibility,
commitment trustworthy during their training.
2.SCOPE OF STUDY:
Scope of Mutual Funds has grown enormously over the years. In the first age of mutual
funds, when the investment management companies started to offer mutual funds, choices
were few. Even though people invested their money in mutual funds as these funds offered
them diversified investment option for the first time. By investing in these funds they were
able to diversify their investment in common Mutual, preferred Mutual, bonds and other
9. MEDI-CAPSUNIVERSITY
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financial securities. At the same time they also enjoyed the advantage of liquidity. With
Mutual Funds, they got the scope of easy access to their invested funds on requirement.
But, in today’s world, Scope of Mutual Funds has become so wide, that people sometimes
take long time to decide the mutual fund type, they are going to invest in. Several Investment
Management Companies have emerged over the years, who offer various types of Mutual
Funds, Each type carrying unique characteristics and different beneficial features.
3.TIME FRAME:
My Internship from Reliance Mutual Fund starting from 1st June2017 to 30th July2017 is of
30 working days.
4.LIMITATION
Access the data regarding different performance indication of Reliance mutual fund.
The clients are shown very negative approach.
Less time of internship for gaining knowledge.
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INDUSTRYPROFILE:
NAME OF INDUSTRY: MUTUAL FUND INDUSTRY
PAST AND CURRENT TRENDS AND DEVELOPMENT IN MUTUAL FUND
INDUSTRY:
The first introduction of a mutual fund in India occurred in 1963, when the Government of
India launched Unit Trust of India (UTI). UTI enjoyed a monopoly in the Indian mutual
fund market until 1987, when a host of other government-controlled Indian financial
companies established their own funds, including State Bank of India, Canara Bank,
and Punjab National Bank. This market was made open to private players in 1993, as a
result of the historic constitutional amendments brought forward by the then Congress-led
government under the existing regime
of Liberalization, Privatization and Globalization (LPG). The first private sector fund to
operate in India was Kothari Pioneer, which later merged with Franklin Templeton. In
1996, SEBI, the regulator of mutual funds in India, formulated the Mutual Fund Regulation
which is a comprehensive regulatory framework.
Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the
month of June 2017 stood at ₹ 19.92 lakh crore. Assets Under Management (AUM) as on
June 30, 2017 stood at ₹ 18.96 lakh crore.
The AUM of the Indian MF Industry has grown from ₹ 3.26 trillion as on 31st
March 2007 to ₹ 18.96 trillion as on 30th June, 2017, about six-fold increase in a
span of 10 years!!
The MF Industry’s AUM has grown from ₹ 5.87 trillion as on 31st March, 2012
to ₹ 18.96 trillion as on 30th June, 2017, more than three-fold increase in a span
of 5 years!!
0 5 10 15 20
31st March 2007
30th June 2017
LAST 10 YEAR (in trillion)
LAST 10 YEAR (in
trillion)
12. MEDI-CAPSUNIVERSITY
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/
The Industry’s AUM had crossed the milestone of ₹10 Trillion (₹10 Lakh Crore)
for the first time in May 2014 and in a short span of less than three years, the
AUM size has touched ₹19 lakh crore last month, almost doubled.
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank of India. The history of mutual
funds in India can be broadly divided into four distinct phases
First Phase - 1964-1987
Unit Trust of India (UTI) was established in 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)
1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
0 5 10 15 20
31st March 2012
30th June 2017
LAST 5 YEAR(in trillion)
LAST 5 YEAR(in
trillion)
0 5 10 15 20
31st May 2014
30th June 2017
LAST 3 YEAR(in trillion)
LAST 3 YEAR(in
trillion)
13. MEDI-CAPSUNIVERSITY
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in December 1990. At the end of 1993, the mutual fund industry had assets under
management of Rs. 47,004 crores.
Third Phase - 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions.
As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805
crores. The Unit Trust of India with Rs. 44,541 crores of assets under management was way
ahead of other mutual funds.
Fourth Phase - since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs. 29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth.
MUTUAL
MUTUAL FUND COMPANY IN INDIA:
ASSETS UNDER MANAGEMENT (RS. Cr)
MUTUAL FUND DEC. 2016 MAR.
2017
Change % Change
ICICI Prudential Mutual Fund 227,989 242,961 14,973 6.57
HDFC Mutual Fund 221,825 237,178 15,353 6.92
Reliance Mutual Fund 195,845 210,891 15,045 7.68
Birla Sun Life Mutual Fund 180,808 195,049 14,241 7..88
SBI Mutual Fund 140,997 157,025 16,028 11.37
UTI Mutual Fund 129,389 136,810 7,421 5.74
Kotak Mahindra Mutual Fund 82,35 92,216 10,081 12.27
14. MEDI-CAPSUNIVERSITY
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Franklin Templetion Mutual Fund 75,783 81,615 ,833 7.70
DSP BlackRock Mutual Fund 58,357 64,177 5,820 9.97
IDFC Mutual Fund 57,998 60,636 2,638 4.55
Axis Mutual Fund 49,281 57,700 8,419 17.08
Tata Mutual Fund 38,271 42,619 4,348 11.36
L&T Mutual Fund 35,191 39,300 4,109 11.68
Sundaram Mutual Fund 27,013 29,370 2,357 8.72
DHFL Pramerica Mutual Fund 24,807 26,117 1,310 5.28
Invesco Mutual Fund 23,617 23,528 -89 -0.38
JM Financial Mutual Fund 18,022 21,475 3,453 19.16
Baroda Pioneer Mutual Fund 10,785 10,324 -462 -4.28
Indiabulls Mutual Fund 10,227 10,820 593 5.80
Canara Robeco Mutual Fund 9,411 9,940 529 5.62
HSBC Mutual Fund 8,670 8,812 142 1.64
IDBI Mutual Fund 7,761 7,719 -42 -0.55
Motilal Oswal Mutual Fund 7,131 8,115 984 13.80
Edelweiss Mutual Fund 6,826 6,918 91 1.34
Mirae Asset Mutual Fund 6,343 7,457 1.113 17.55
BNP Paribas Mutual Fund 6,032 5,891 -141 -2.34
PRINCIPAL Mutual Fund 4,868 5,347 479 9.84
Union Mutual Fund 3,056 3,416 361 11.80
BOI AXA Mutual Fund 2,896 3,552 656 22.66
Taurus Mutual Fund 2,339 1,876 -463 -19.81
Mahindra Mutual Fund 1,457 1,995 539 36.97
Peerless Mutual Fund 946 1,062 116 12.28
Quantum Mutual Fund 858 962 104 12.12
PPFAS Mutual Fund 676 696 21 3.04
IIFL Mutual Fund 424 565 141 33.33
Escorts Mutual Fund 286 243 -44 -15.33
Sahara Mutual Fund 67 67 0 0.49
Shriram Mutual Fund 38 41 3 7.70
Total 1,691,946 1,828,151 136,206 7.45
FUTURE PROSPECTS OF MUTUAL FUND:
The performance of Indian mutual funds industry has been quite encouraging over the years
in spite of the several problems faced by the industry. This can be seen from the mounting
growth of mutual funds AUM, its market participants, investor base and total number of
schemes offered. Based on which, the industry is anticipated to sustain its encouraging trends
in future also. Moreover, the country’s economic and financial health, its future prospects,
sound regulatory framework and effective fund performance also play an important role in
deciding the future of mutual funds industry in India.
The prospects of mutual funds industry in India is closely linked to the performance of
economy in future. So, before discussing the prospects of mutual funds industry, we will
underline the future prospects of Indian economy in brief.
15. MEDI-CAPSUNIVERSITY
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Growth prospects of India economy:
India is home to 1.21 billion people, which is about 17.4 percent of the world population.
However, it accounts for only 2.4 percent of world GDP in terms of US dollar terms and 5.5
percent in terms of purchasing power parity (PPP). Hence, there exists a huge potential for
reaching to higher growth trajectory in future. According to Dun & Bradstreet (D&B),
“India’s real GDP is expected to register an average growth of 9.2 percent during 2011-2020,
on the back of increased infrastructure spending, substantial growth in investment activity,
higher saving, strong growth in services sector, emerging of a large working age population
and robust consumption demand. Strong GDP growth is expected to result in a considerable
increase in real per capita income, which in turn would lead to significant reduction in the
percentage of people living below the poverty line. With rising income levels, India is
expected to move from a low-income country to a middle-income or upper-middle income
country by 2020. In the journey during the current decade (2011-2020) as India traverses a
high growth path, it is expected that India will become USD 5 trillion (at current market
prices) economy by 2020”. Below graph shows the growth pattern of the Indian economy. It
exhibits that starting with 3.5 percent average annual growth rate during the first three
decades, the economy is expected to grow at an average annual rate of 9.2 percent during the
current decade.
A Shift to High growth Path (Growth in real GDP)
Dun & Bradstreet pointed out that with normal monsoon, “the agriculture is expected to
record an average annual growth of 4.3 percent during 2011-2020 with an increase in
investment in the agricultural infrastructure such as irrigation facilities, warehousing and cold
storage”. The industrial sector is expected to grow at 9.5 percent per annum largely driven by
the robust consumption demand, increase in exports, infrastructure development and the
strong growth in domestic investments. Owing to the impressive growth of hotels, transport,
-6
-4
-2
0
2
4
6
8
10
12
Peridoic average growth
rate
Annual growth rate
16. MEDI-CAPSUNIVERSITY
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communication and financial services, the growth in service sector is estimated at 10.1
percent per annum during 2011-2020. Below graph shows the sectoral forecast of the Indian
economy.
Sectoral Forecast of Indian Economy
The infrastructure sector has a huge untapped potential, which will be used as the main
driving force for achieving higher economic growth in current decade. Growth in
infrastructure sector will not only boost the investment and consumption activities but also
increase the employment opportunities in the country. It is expected that gross domestic
capital formation (GDCF) as a proportion of GDP will increase to 41.3 percent in 2020 from
35.1 percent in 2010-11. The major portion of investment will be funded by domestic
savings, which means there will be less dependence on foreign capital. The rising per capita
income will be the basic factor responsible for raising domestic savings. Savings rate is
expected to surge to 38.8 percent in 2020 from 32.3 percent in 2010-11. The private final
consumption expenditure is likely to increase at an average annual rate of 9.1 percent during
2011-2020. Further, with rapid industrialisation and development of Tier II and Tier III cities,
the urban population as a percent of total population is expected to become more than 32
percent in 2020 from 31.1 percent in 2011. This will boost up the public expenditure in
education, which is expected to rise to 3.9 percent of GDP in 2020 from 3 percent in 2011.
According to the Report of the Technical Group of Population Projections constituted by the
National Commission on Population (2006), “The population of India is expected to
increase from 1029 million to 1400 million during the period 2001-2026 – an increase of
36 percent in twenty five years at the average annual rate of 1.2 percent. Out of the total
population increase of 371 million between 2001 and 2026, the share of the workers in the
age-group 15-59 years in this total increase is 83 percent”. The substantial rise in the working
age population will result into a large supply of labour force for productive purposes and thus
brighten the growth prospects of the economy.
0
5
10
15
Agriculture industry services
FY06-FY10
FY11-FY15
FY16-FY20
17. MEDI-CAPSUNIVERSITY
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Growth Prospects of Indian Economy: 2011-2021
Year 1990-91 to
2001-02
2001-02 to
2010-11
2011-12 to
2020-2021
GDP at Factor Cost Constant Prices (USD
Billion)
400 1070 2500
GDP at Factor Cost Constant price (Growth
Rate)
5.7 7.3 9.3
Population Billion 1.01 1.1 1.38
Par Capital Income (USD) 400 900 1800
WPI Inflation (Average) (%) 7.8 5.6 5.6
Gross Fiscal Deficit as % of GDP 5.6 4.7 3.4
Current Account Deficit as % of GDP -1 0.75 <-1
Exports of Goods and Services (USD Billion) 60 33 1500
The Progress Harmony Development Chamber of Commerce and Industry (PHDCCI) Report
(2011) on Growth Prospects of the Indian Economy says that “India’s real GDP growth is
projected to reach a higher growth trajectory and estimated to achieve an average growth of
9.3 percent during the decade by 2021”.17 The per capita income of India is expected to rise
to USD 1800 during 2011-12 – 2020-21. It will push up India’s share in world consumption.
The average wholesale price index (WPI) inflation is projected to remain within 5-6 percent.
The gross fiscal deficit is expected to be within 3-5 percent of GDP. The exports of goods
and services are projected to expand enormously and the average current account deficit
would be less than (-) 1 percent of GDP (above TABLE).
Edelweiss capital’s Forecast for Indian Economy
Sectors Projected Growth (2009-2020)
1. Banking Sector 5.3 times
2. broking 4.7 times
3. life Insurance Sector 4.7 times
4. Domestic Pharma and Health Care 6.0 times
5. Media and Entertainment 5.0 times
6. Education Sector 5.7 times
7. Premium Urban Housing Sector 6.5 times
8. Organised Retail sector 6.3 times
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The Edelweiss Capital Today India 2020 report predicts that “India’s GDP will become
quadruple from 2009 level to INR 205 trillion (USD 4.5 trillion at the exchange rate of 46) by
2020 with nominal growth of 13 percent per annum”.18 During the same period, the total
private final consumption will grow from INR 30 trillion to INR 113 trillion and the key
beneficiary sectors will be education, pharma & healthcare, media & entertainment, urban
housing, organised retail and automobiles. The report estimated the infrastructure investment
to grow from INR 21 trillion in XIth Plan (2007-12) to INR 62 trillion between 2010 and
2020. In infrastructure, significant growth sectors include the power, roads, railways,
irrigation and water supply & sanitation. The process of urbanisation will be very fast during
2010-2020 as more than 3 million people are expected to migrate to urban areas every year,
which means there will be huge demand for urban infrastructure in the coming years. In
financial services, the total non-food bank credit is expected to reach INR 214 trillion by
2020 from INR 26 trillion in 2009. At the same time, the total asset management will grow
from INR 7.2 trillion to INR 41 trillion. Edelweiss’s forecast for the Indian economy is given
in above Table.
Thus, in the light of above estimates, it can be presumed that the average growth of Indian
economy will be around 9 percent during 2011-12 to 2020-21. This growth would be
achieved on the back of rising income levels, investment activities, consumption demand and
increasing share of service and working age population in economy. However, to reach the
high growth trajectory, India needs to lay emphasis on inclusive growth. Special efforts are
needed to improve the level of education & health in the country. Without sufficient growth
in agriculture and allied activities, significant dent on the problem of poverty and
unemployment is not possible. Financing of infrastructure expenditure, lowering the costs of
doing business, simplification of tax structure and making land available easily to industry
would be critical to the rapid growth in future. The recent proposal for opening up of 51
percent FDI in multi-brand retail will alter the demand-supply dynamics of the economy and
boost up the allocation of global financial capital in the future. So, the long-term growth
prospects of Indian economy appear to be very good.
Prospects of Mutual Funds in India:
Mutual funds constitute a very important component of the capital market in developed
countries and now, are also becoming the vibrant institutions in emerging markets like India.
In the coming years, the mutual funds in India are likely to emerge as important players in the
capital market for managing the funds of small investors. The country’s economic and
financial health, regulatory framework, and the performance of the funds are likely to play an
important role in deciding the future prospects of the industry.
Despite some temporary disturbances, the overall country’s economic and financial growth
scenario foretells the good future of mutual funds in India. This can be observed from the fact
that with the continuously rising savings rate, the investment activities in mutual funds have
also risen in the country. The share of mutual funds (net resources) in gross domestic savings
19. MEDI-CAPSUNIVERSITY
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(GDS) was 5.78 percent in 1990-91. It increased to 8.08 percent in 2007-08 but declined to
3.56 percent in 200910 owing to the global financial crisis. Similarly, the mutual funds share
in gross household savings (GHS) increased from 7.17 percent in 1990-91 to 13.26 percent in
2007-08 though, declined to 5.11 percent in 2009-10. The above trends show that in the
coming years, mutual funds will tap the larger portion of domestic savings, especially
household savings. The rising per capita income and savings will further increase the
investment in mutual funds. Looking at the institutional segment of mutual funds, we
observed that rising corporate earnings and maturing capital markets will play a key role in
accelerating the growth of the mutual funds industry. Rapid stock market development as
indicated by the increasing ratio of market capitalisation (on NSE & BSE) and GDP, and the
growth of derivatives market will also foster the growth of mutual funds. In the coming years,
more transparent disclosure standards and trading mechanism will fuel the growth of capital
market in general and the mutual funds market in particular.
The Indian mutual funds industry has mobilised the savings of millions of investors and
supplied a huge amount of capital to different sectors of the economy since its inception in
1964. Starting with an asset base of Rs. 24.67 crore in 1964-65, the total assets of the industry
has grown to Rs. 6,871 crore in 1987-88 registering an average annual rise of 27.81 percent
(Table 7.18). The year 1987, is marked by the entry of public sector players in the industry,
with which the growth of mutual funds had accelerated. The AUM of industry grew at an
average annual rate of 49.9 percent during 1987-88 – 1992-93. During the same period, the
number of schemes and players increased from 13 and 3 to 142 and 9 respectively. Another
turnaround in the industry came in 1993, when private sector players (including foreign
players) were given permission to start the mutual fund business. Total AUM of the industry
increased from Rs. 62,430 crore in 1993-94 to Rs. 90,586 crore in 2000-01 with an average
annual growth of 10.6 percent. Over the said period, the number of schemes increased to 393
from 167 and the number of players to 35 from 14.
The growth of industry has been quite impressive after 2000-01 (the year of UTI Crisis). Its
AUM grew from Rs. 1, 00,594 crore in 2001-02 to Rs. 6, 11,402 crore as on December,
2010-11 at an average annual rate of 22.98 percent. During this period, the number of
schemes rose to 1,226 from 417 and the number players to 44 from 35. It is significant to note
that the total investor base of mutual funds constituted 3.90 percent (4.72 crore) of the total
population (121.02 crore) in 2011 which was merely 0.029 percent (1.32 lakh) of the total
population (43.91 crore) in 1964. The growth trends of the mutual funds industry indicated
that since 1964-65, the industry has grown in several folds in terms of assets, investor base,
number of players and the total number of schemes offered. Looking at the ongoing trends
and combining it with the past developments, we can say that the industry will maintain the
same growth trend in coming years too and will achieve more exciting growth.
Undoubtedly, SEBI has put in place a well-defined regulatory framework for mutual funds in
India. The regulatory mechanism and supervisory control are strong and efficient enough to
protect the interest of investors. Recently, SEBI has taken some regulatory steps to revive and
energise the Indian mutual funds industry. Some of these major steps are allowance of higher
20. MEDI-CAPSUNIVERSITY
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expense ratio, removal of internal limits in expense ratio, crediting back of exit load to
schemes, service charge on investors, and option of direct selling, cash investment in mutual
funds and the regulation of distributors. These steps will certainly improve the penetration of
mutual funds and strengthen the distribution network in our country. The proposal to increase
expense ratio up to 30 basis points (0.3 percent) on net assets of the scheme if the mutual
funds are able to get 30 percent of the business beyond top 15 cities, will prove quite
beneficial for the AMCs and distributors. It will directly increase their profits. The
distributors will have to work hard to get more business because lower business means
proportionately lower expense ratios. Under the approach, mutual funds have to disclose all
the efforts taken by them to increase the geographical penetration and the details of the
opening of new branches especially at locations other than the top 15 cities. This move will
increase the reach of mutual funds to smaller towns and places in India and thus augment the
growth of the industry in coming years.
Another step that includes, the removal of internal limits on the expense ratio is a big change
for the AMCs. Earlier, there was an allocation limit on AMCs regarding fund management
and distribution in expense ratios. Now, the allocation limit is removed and the mutual funds
are allowed to allocate their expense ratio according to their interest. With this move, the
distributors will be able to get more commissions and AMCs to do more advertisements for
selling of mutual funds. Further, investors can now prematurely exit the schemes without any
exit load as SEBI has instructed mutual funds to credit back the exit load money to the
scheme’s account, which will not be treated as AMCs profit. To compensate the AMCs loss,
an equal amount of expense ratio is allowed by SEBI for inclusion in the expense ratio. The
net effect of this move would be no gain and no loss to both the parties – AMCs and
investors. Earlier, service tax was borne by the mutual funds themselves but now, it would be
charged from the investors through the AUM of funds. In this way, the exemption from
service tax will increase the profits of the AMCs.
SEBI has also introduced the option of direct selling in mutual fund investment. It means that
the investment will not be routed through agents or distributors. Such plans will save the
investors from unnecessary distribution charges and commissions and thus, increase their
returns on schemes. We believe that direct selling of mutual funds will go a long way in
benefiting the long-term investors in mutual funds. Further, in order to enhance the reach of
mutual funds among small investors, the cash investments to the extent of Rs. 20,000 per
investor, per mutual fund and per financial year has been allowed by SEBI. This is for small
investors who are not tax payers and do not have PAN/ bank accounts such as farmers, small
traders/ businessman/ workers. Further, the announcement of regulations for distributors will
lower the incidence of misselling in industry and thereby make the industry a safer
investment avenue. Thus, the moves taken by SEBI will not only raise the participation of
investors from small and medium cities but also, encourage those investors who had not
invested in mutual funds because of the burden of unnecessary charges and commissions.
Moreover, the permission to qualified foreign investors (QFIs) for investing in Indian mutual
fund schemes will further boost up the growth of the industry. It would enable the Indian
mutual funds to have direct access to foreign investors and widened the class of foreign
21. MEDI-CAPSUNIVERSITY
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investors in equity market. It would further raise the efficiency of mutual fund market
participants. In addition, after global financial crisis in 2008, SEBI has now, assumed the role
of a more responsible regulator. Along with the continuous monitoring of the market, it is
also making consistent efforts to refine the working of capital market and mutual funds. All
these would go a long way in boosting the growth of the industry in coming years.
The future growth of mutual funds industry depends on the performance of its funds. Our
results regarding the mutual funds performance suggest that majority of the sample schemes
have offered above than risk-free asset returns to investors. Sample scheme have followed
their risk & return investment objectives very well thereby, provided commensurate returns.
However, most of the sample schemes have failed to offer returns higher than their
representative market index. Also, the fund managers of our schemes are showed to have low
stock selectivity and diversification skills. It indicates that mutual funds have provided
limited benefits of professionalism to its investors. However, investors should not worry
much as they are getting more than risk free returns on their investment. They are getting
better returns than any traditional investment alternative such as bank deposits and post-office
savings scheme etc. It is also noteworthy that during the global financial crisis, our mutual
fund schemes provided positive returns to investors. The mutual funds industry in India is at a
growing stage and in coming years we are likely to see more encouraging results. The Indian
mutual funds industry has enough potential to outperform the market in future.
When an economy experiences higher economic growth, mutual fund plays an important role
in its wealth creation. This simplification is the outcome of the US experience where people
convert their large amount of savings into mutual funds every day and now holding on the
world’s largest mutual fund market. In spite of several problems, the same is expected from
the mutual funds industry in India. The areas where industry is facing problems are actually
the areas of its potential for achieving long-term growth. Some more factors that also point
the good future of mutual funds can be listed as:
1. The low penetration level of domestic AMCs and the continuous process of urbanisation,
enhanced financial literacy and a huge young population with an increased risk appetite are
also likely to be instrumental in the long-term growth of the retail segment of the mutual
funds industry.
2. Public sector banks and post-offices have a good network base. They have significant
reach beyond the top 20 cities in semi-urban and rural areas and the potential to build a strong
retail investors base. Public sector banks may play a crucial role in strengthening the mutual
funds distribution system. However, they are not committed to do so but their role will
provide the platform needed for mutual funds distribution.
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COMPANY PROFILE:
VISION, MISSION AND OBJECTIVE OF RELIANCE MUTUL FUND:
Vision:
To be a globally respected wealth creator with an emphasis on customer care and a culture of
good corporate governance.
Mission:
To create and nurture a world-class, high performance environment aimed at delighting our
customers.
Objective:
To carry on the activity of mutual fund as may be permitted at law, and
formulate and devise various collective schemes of savings investment for
people in India and abroad, and also ensure liquidity of investment for the
unit holders;
To deploy fund raised so as to help the unit holder earn reasonable on their
saving; and
To take such step as may be necessary from time to time realise the effect
without any limitation.
HISTORY OF RELIANCE MUTUAL FUND:
The reliance group founded by Dhirubhai. H. Ambani (1932-2002) is India’s largest private
sector enterprise. He is credited to have brought about the equity cult in India in the late
seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to
dream and learn to excel’. The Reliance Group is a living testimony to his indomitable will,
single-minded dedication and an unrelenting commitment to his goals.
Reliance Nippon Life Asset Management - RNAM (formerly Reliance Capital Asset
Management Limited) is one of the largest asset managers in India and manages and advises
Rs. 3, 58,059 crore as per March, 2017, across mutual funds, pension funds, managed
accounts, alternative investments and offshore funds. RNAM is the only AMC to have the
mandate for fund management by EPFO, PFRDA and CMPFO.
Reliance Mutual Fund ('RMF'/ 'Mutual Fund') is one of India’s leading Mutual Funds, with
Average Assets Under Management (AAUM) of 2,22,964 Crores (April 2017- June 2017
Quarter Q10) and 70.05 lakhs folios (as on 30th June, 2017).
Reliance Mutual Fund, a part of the Reliance Group, is one of the fastest growing mutual
funds in India. RMF offers investors a well-rounded portfolio of products to meet varying
investor requirements and has presence in 179 cities across the country. Reliance Mutual
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Fund constantly endeavors to launch innovative products and customer service initiatives to
increase value to investors. Reliance Capital Asset Management Limited (‘RCAM’) is the
asset manager of Reliance Mutual Fund. RCAM is a subsidiary of Reliance Capital Limited
(RCL). Presently, RCL holds 65.23% of its total issued and paid-up equity share capital and
the balance of its issued and paid up equity share capital is held by other shareholders which
includes Nippon Life Insurance Company (‘NLI’), holding 14% of RCAM’s total issued and
paid up equity share capital. NLI acquired the said 49% shareholding in RCAM.
Reliance Capital Ltd. is one of India’s leading and fastest growing private sector financial
services companies, and ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management,
life and general insurance, private equity and proprietary investments, stock broking and
other financial services.
Reliance Mutual Fund, a part of the Reliance Anil Dhirubhai Ambani (ADA) Group, is one
of the fastest growing mutual funds in India. RMF offers investors a well-rounded portfolio
of products to meet varying investor requirements and has presence in 160cities across the
country. RMF constantly endeavours to launch innovative products and customer service
initiatives to increase value to investors.
Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act,
1882 with Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital
Trustee Co. Limited (RCTC), as the Trustee.
Reliance Mutual Fund has been registered with the Securities & Exchange Board of India
(SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance
Capital Mutual Fund was changed to Reliance Mutual Fund effective March 11, 2004 vide
SEBI's letter no. IMD/PSP/4958/2004 dated March 11, 2004. RMF was formed to launch
various schemes under which units are issued to the public with a view to contribute to the
capital market and to provide investors the opportunities to make investments in diversified
securities.
Sponsors Reliance Capital Limited
Trustee Reliance Capital Trustee Co.
Limited
Investment Manager / AMC Reliance Capital Asset
Management Limited
Statutory Detail The Sponsor, the Trustee & the
Investment Manger are
incorporated under the
companies Act, 1956
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SWOT ANALYSIS:
A type of fundamental analysis of the health of a company by examining its strengths(S),
weakness (W), business opportunity (O), and any threat (T) or dangers it might be exposed
to.
Strengths:
ProfessionalManagement-The basic advantage of funds is that, they are
professional managed, by well qualified professional. Investors
purchase funds because they do not have the time or the expertise to
manage their own portfolio. A mutual fund is considered to be relatively less
expensive way to make and monitor their investments.
Diversification- Purchasing units in a mutual fund instead of buying
individual stocks or bonds, the investors risk is spread out and
minimized up to certain extent. The idea behind divers ifica t io n
is to inves t in a large number of assets so that a loss in
any particular investment is minimized by gains in others.
Economies of Scale- Mutual fund buy and sell large amounts of
securities at a time, thus help to reducing transaction costs, and
help to bring down the average cost of the unit for their investors.
Liquidity- Just like an individual stock, mutual fund also allows
investors to liquidate their holdings as and when they want
Simplicity-Inves t me nt s in mutua l fund is considered to be
easy, compare to other available instruments in the market, and
the minimum investment is small. Most AMC also have automatic
purchase plans whereby as little as Rs. 2000, where SIP start
with just Rs.50 per month basis.
Weakness:
Emerging markets: since there is more investment demand in the United
States, Japan and the rest of Asia, Reliance should concentrate on these
markets, especially in view of low global interest rates. Mutual funds are like
many other investments without a guaranteed return: there is always the
possibility that the value of your mutual fund will depreciate. Unlike fixed-
income products, such as bonds and Treasury bills, mutual funds experience
price fluctuations along with the stocks that make up the fund. When deciding
on a particular fund to buy, you need to research the risks involved – just
because a professional manager is looking after the fund, that doesn’t mean
the performance will be stellar.
Fees: In mutual funds, the fees are classified into two categories: shareholder
fees and annual operating fees. The shareholder fees, in the forms of loads and
redemption fees are paid directly by shareholders purchasing or selling the
funds. The annual fund operating fees are charged as an annual percentage –
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usually ranging from 1-3%. These fees are assessed to mutual fund investors
regardless of the performance of the fund. As you can imagine, in years when
the fund doesn’t make money, these fees only magnify losses.
Opportunity:
Potential markets: The Indian rural market has great potential. All the major
market leaders consider the segments and real markets for their products. A
senior official in a one of the leading company says foray into rural India
already started and there has been realization that the rural market is both price
and quantity conscious.
Entry of MNCs: Due to multinationals are entering into market job
opportunities are increasing day by day. Also India Mutual Fund majors are tie
up with other financial institutions.
Threat:
Hedge funds: sometimes referred to as hot money, are also causing a threat
for mutual funds have gained worldwide notoriety for bringing the markets
down. Be it a crash in the currency, A stock or A bond market, A usually a
hedge fund prominently figures somewhere in the picture.
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ORGANIZATIONAL STRUCTURE:
BOARD N-1 N-2
PORTFOLIO &
ALTERNATE
DEPUTY
INVESTMENT
WEST ZONE
SOUTH ZONE
EAST ZONE
CEO
SUNDEEP SIKKA
DIRECTOR
AMEETA CHATTERJEE
DIRECTOR
KANU DOSHI
DIRECTOR
PRAKASH MAILK
DIRECTOR
TAKAYUKI MURAJ
DIRECTOR
KAZUHIDETODA
CEO
HR
EQUITY INVESTMENT
PRODUCT
MANAGEMENT
CUSTOMER
SERVICE
FIXED INCOME
INVESTMENT
MARKETING
LEGAL &
COMPLIANCE
BANKING
OPERATIONS
INFRASTRUCTURE
&ADMINISTRATIONS
DEPUTY CEO
CTO
SERVICE DELIVERY&
OPS E..
RISK MANAGEMENT
FUND MANAGER
FUND MANAGER
FUND MANAGER
RETAIL BUSDEV
FUND MANAGER
FUND MANAGER
FUND MANAGER
NORTH ZONE
FUND MANAGER
FUND MANAGER
FUND MANAGER
INSTITUTIONAL
BUSINESS
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MARKETING DEPARTMENT
MARKETING MIX
In case of Mutual fund, Returns are determined by Managerial efficiency and investment
strategy. Mutual fund marketing strategies is successful if it creates confidence among
potential investors and strengthens their desire to put their money with a particular fund.
Product Place Promotio
n
Price People Physical
Evidence
process
Physical
goods
Channel
type
Promotio
n Blend
Flexibility Employees Facility
design
Flow of
activities
Feature Exposure Sales
people
Price level Recruiting Employee
dress
Standardis
ed
Quality
level
Intermediari
es
Number Terms Training Other
tangible
Customise
d
Accessori
es
Outlet
location
Selection Differentiati
on
Motivation Reports Number of
step
Product
line
Transportati
on
Training Discount Rewards Business
cards
Simple
Branding Storage Incentive Team work Statement
s
Complex
Managing Advertisi
ng
customer Guarante
es,
publicity
Level of
customer
involveme
nt
Channels Target Education
Media
type
Training
Type of
Ads
Communicati
on
Copy
Thrust
Cultural and
values
Sales
promotio
n
Employee
search
28. MEDI-CAPSUNIVERSITY
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1. Product: Reliance mutual fund as a product is the investment, which the investors hold.
The steps, which are involved in the formulation of the schemes or product designing, are
conceptualisation, drafting, test marketing, approval and authorisation of the scheme. Since
mutual fund is a service, there is a little element of physicality. Physical evidence is the
Mutual fund documents and the statements that are received periodically. Mutual fund
managers want to deliver good quality at a reasonable cost, but the managers cannot make
any promises about the future performance of the investment since a mutual fund is not a
consumer product with consistency of performance. There are number of mutual fund
schemes that are floating in the market. One mutual fund house deals in many schemes. The
product line of the Reliance mutual fund houses ranges 55 schemes in India as market
segmentation is done to cater to all the specific investment demands of the customers. Market
segmentation increases product differentiation, limiting competition to the funds belonging to
the same category, while fund proliferation increases market coverage. It relies either on the
creation of many funds in order to hide the poor performers merging them into the best ones.
Sponsors of the mutual funds make efforts to differentiate their products and bring in
recognition of their brand names in the consumers as it leads to product identification at the
market place. It is seen that Mutual funds in India have been quite successful in brand policy
and brand identification.
2. Place: Place or the marketing channel describes the groups of individuals and companies,
which are involved in channelising the flow and sale of product and services from the
provider to the eventual customer. In mutual fund also there are channels broadly defined as
‘direct’ or ‘indirect’. Direct channels involve the movement and sale of products directly
between the provider and the customer as in the traditional branch network, whereas in the
case of indirect channels product flows via intermediaries and middlemen. Traditionally
mutual fund has been via the branch network, but now different approaches are adopted.
3. Promotion: With globalisation the entry of multinational corporations propelled due to
which the market changed into a buyers’ market and due to the sudden competition growth,
the domestic mutual fund industry was shaken. Promotional efforts should be stimulating and
motivating enough to generate interest in and promote a positive attitude towards a Mutual
fund house so that they will be considered favourably in comparison with the competitors. As
there are so many players in the Mutual fund Industry, to choose one mutual fund over the
other becomes very difficult for the investors. This has led the mutual fund to follow
aggressive promotional techniques. Besides leading National Dailies, funds regularly
advertise in business newspapers and magazines.
4. Pricing: Price competition involves using low prices as a competitive tool to attract
customers. As the price of the mutual fund is dependent upon the price of the underlying
shares. Therefore it is the distribution cost not the manufacturing cost in Mutual fund that
separates one competitor with another. One of the advantages of Mutual funds that it
discloses its entire fee charged.
5. People: Mutual fund marketers need to develop a high level of inter personal skills and
customer oriented attitude in employees for the simple reason that employees in services are
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the key to service experience. All employees in the mutual fund house have an effect on the
sale of the products. This is true of frontline a staff that has direct control with customers;
they provide the link between the Mutual fund and the investors. To the investor they
represent the Mutual fund company. Success of mutual fund is highly dependent upon the
relationship of the investors with the employees as there is a little difference between the
products the different fund houses are offering, it is mainly the commitment that a mutual
fund house makes.
6. Physical evidence: The allocation of greater amount of space in a mutual fund house is
likely to have a positive relationship between the company and the investors. Physical
evidence also means the offer documents and Mutual fund statements that the investors are
provided with. In order to have a better relationship with the investors, the statements should
be regular, easily understandable and all the facts should be mentioned in it.
7. Process: Process means the process through which the investors’ money is invested in
different schemes and the returns are provided to them. The process should be less complex.
The revision of schemes should not be a very frequent task as it leads to increase in cost. The
mutual fund houses make efforts to standardise the process. In order to customise the process,
so lot of different schemes are coming into market.
TARGETING AND POSITIONING
TARGETING
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.
Moreover the company is very much focused on doing business at Retail level.
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.
POSITIONING
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
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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 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.
CHANNEL MANAGEMENT
There are number of distribution channels that are existing and the channels are still
expanding. The channels can be divided into the following heads:
Direct Marketing
Personal selling
Telemarketing
Direct Mail
Selling through intermediaries like brokers, agents, banks, etc.
Joint calls
The essentials of a Good Distribution System are:
Product selection should be done carefully.
Internal sales staff should be carefully selected.
Right targeting of customers should be done. A proper strategy based on a
demographic study will lead to a smooth, seamless customer penetration and sales
volumes.
Proper training - Training is the key on which the entire distribution revolves. It is
essential that sales force should be continuous trained in this dynamic environment.
Educating/ counselling the customer about products is required keeping in mind rising
customer expectations and increasing buyer expertise.
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LEARNINGOUTCOMES
The objectives of an experiential learning student are to:
Assess interests and abilities in their field of study.
Develop the practical work situations.
Develop the skill and techniques for my careers.
Develop work habits and attitudes necessary for job success.
Learn to appreciate work and its function in the economy.
Build a record of work experience.
Build the strength, teamwork, spirit and self-confident.
Build communication, interpersonal and learn to learn proper behaviour of corporate
life in industry sector.
Acquire employment contacts leading directly to a full-time job following graduation
from college.
RECOMMENDATIONS
The report recommends that mutual fund companies should push that provides for both risk
coverage and savings component because that what the customer prefer. The mutual fund
companies should also consider lowering the cost of investment, improve on agent, integrity,
improve on customer service develop the new product varieties and create awareness through
aggressive consumer education campaigns.
CONCLUSIONS
The report outlines the activities in the underwriting of mutual fund product. The
underwriting of mutual fund product gave the experience in field of mutual fund, quotation
preparation etc, apart from improving my sales skill in creating and maintaining networks.
From field, the report concluded that high cost investment are he major factors hindering the
penetration of mutual fund.