‘Perception of Customers Preferences towards Life Insurance, Mutual Fund and Share Trading’ is the topic head of the project report. In present scenario, is not only confined to the selling of products, advertisement and sales promotion but it includes consumer satisfaction as a whole. Marketing is a phenomenon which emphasizes in making new customers and keeping the relations with the existing customers. Financial products are those products which have values in monetary terms. The Financial products are intangible in nature that means the customer cannot even touch, smell or feel it. In this manner, it becomes a challenge for the sales personnel in financial sector to convince the customer to invest in it. The sales personnel can only guarantee for the benefit that the customer will get after a certain period of time span. The evaluation of financial planning has been increased through decades, which is best seen in customer rise. Now a day’s investment of saving has assumed great importance. According to the study of the Market, it is being observed that markets are doing well in investments like, Mutual funds, Shares, Life Insurance etc. In near future a proper financial planning is required to invest money in all type of financial product because there is good potential in market to invest. The main objective of this project is to know the Perception of Customers Preferences towards Life Insurance, Mutual Fund and Share Trading and the people’s


awareness of various instruments available for Tax planning and Personal Financial Advising facility provided by RELIANCE MONEY LTD.

Business overview
Reliance Capital is one of India’s leading private sector financial services companies , and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking , life and general insurance , proprietary investments, private equity and other activities in financial services . Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services . Reliance Life Insurance is an associate company of Reliance Capital Ltd. , a part of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, 2

proprietary investments, private equity and other activities in financial services. Reliance Anil Dhirubhai Ambani Group also has presence in Communications, Energy, Natural Resources, Media, Entertainment, Healthcare and Infrastructure

India ( Mutual Fund ) Regulations, 1996. RCL primarily focuses on funding projects in the infrastructure sector and supports the growth of its subsidiary companies, Reliance Capital Asset Management Limited , Reliance Capital Trustee Co. Limited, Reliance Limited . As of March 31, 2005 , the company’s investment in infrastructure projects stood at Rs. 1071 Crores. The investment portfolio of RCL is structured in a way that realizes the highest post- tax return on its investments.

Reliance Capital Ltd According to newspaper According to newspaper reports, Reliance Capital Limited has decided to convert itself into a special purpose vehicle cum venture capital outfit. The company plans to develop infrastructure projects and invest in InfoTech, Internet, media and biotech startup. The company is also drawing up plans to enter the insurance sector and to expand its mutual fund business. Reliance Capital Limited (RCL) is India’s largest private sector financial services company. RCL has a net worth in excess of Rs. 11 bn. The Reliance group owns a 53% stake in the company. RCL is moving away from the traditional non-banking finance company mould by reducing business activities pertaining to inter corporate deposits and corporate loans. The company is setting aside Rs. 10 bn to invest in its new business focus areas.


The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with total revenues of over Rs 99,000 crore (US$ 22.6 billion), cash profit of Rs 12,500 crore (US$ 2.8 billion), net profit of Rs 6,200 crore (US$ 1.4 billion) and exports of Rs 15,900 crore (US$ 3.6 billion).

The Group's activities span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and Communication initiatives.

Setting global benchmarks…
 The largest private sector group in India accounting for 9% of the government’s indirect tax revenues, about 2.3% of country’s capital formation and 5% of country’s exports.  The company that set up the world’s largest grassroots refinery at Jamnagar in just under 36 months at a cost 30-50% less than that of global undertakings.  The company that set up the world’s largest grassroots multi-feed cracker complex.  The world’s second largest producer of polyester staple fiber and polyester filament yarn.


 The world’s largest shareholder family of 5 million.  The only Indian company in Business Week's 1994 listing of the 50 largest companies from developing countries  Distinction of becoming India’s first private sector company to achieve a ranking in Fortune Global.  Among the world's top 425 companies by turnover, among world's top 300 companies by net worth, among world's top 225 companies by net profits

Reliance group's business activities encompass all major growth sectors of the Indian economy:
 Oil and gas exploration  Refining and marketing  Petrochemicals including intermediates  Textiles  Power  Telecom  Communication  Insurance  Financial services  Assets and finance management.  Brokerage firm (Online trade services)


Reliance Money Ltd., an Anil Dhirubhai Ambani Enterprises group company, it’s a part of Reliance Capital Group. Its India's one of the largest private which provides best services in share trading and financial services. It starts business from last 4 months. And millions of people have joined it. The Anil Dhirubhai Ambani Enterprises group, comprising of Reliance Communication, Reliance Energy and Reliance Capital are part of the Reliance Group, founded by Shri Dhirubhai H. Ambani (1932-2002).


Reliance Capital is today India's fastest growing financial services powerhouse, with over 5 million customers. Our customer base is served by one of the most extensive and technologically advanced distribution networks, comprising over 3,600 outlets in nearly 700 towns and cities across the country. An integral member of the Reliance ADA Group, Reliance is the bearers of a proud name, and an even prouder legacy. Reliance ADA Group, barely two years in the making, now ranks among India's top 3 business houses. We have a strong presence across a wide array of high-growth consumer-facing businesses – from telecom and financial services to energy and power, from media and entertainment to healthcare. Across different companies, Reliance ADA group touch the lives of over 100 million customers, or over 1 in every 10 young and inspirational Indians every single day. Reliance ADA group enjoys the unparalleled trust, faith and confidence of nearly 7 million shareowners – the largest such family in India, perhaps even in the world. Reliance ADA Group is among the largest employers in the country, with a young, highly trained and motivated workforce approaching 1,00,000-strong. Reliance have a Group market capitalization of over Rs 1,57,000 crore, having added over Rs 1,42,000 crore or over Rs 300 crore of shareholder wealth creation every single working day over the past two years. Reliance ADA group net worth is in excess of Rs 40,000 crore. It’s cash flows across the Group are approximately Rs 9,000 crore and Net profit is over Rs 5,000 crore.

We have zero net debt at the group level.


It’s current Group net worth and debt structure gives us the capacity to borrow, on a conservative basis, over Rs 1,00, 000 crore. But Reliance Capital, like the Reliance ADA Group, is not just about scale and size. It is also the about the pursuit of excellence; of values that embody the spirit of New India — the new resurgent India of the 21st century. It’s goal is not just to build a great enterprise for its stakeholders, but also to build a great future for our country: To give millions of young Indians the power to realize their dreams, the opportunities to shape their own destiny and the means to realize their true and diverse potential.

Performance Review
It’s accounts for the year ended 31st March, 2007, along with the Director's Report, Letter to Shareholders and Management Discussion and Analysis, have been circulated to you. • Gross income of Rs.2,158 crore - an increase of 128 per cent • Net profit of Rs.703 crore - an increase of 23 per cent • Earnings per share of Rs.30.73 - an increase of 16 per cent • Book value of Rs. 215.7 per share - an increase of 18 per cent • Total Assets of Rs. 6,708 crore

Strong Financial Platform
It have created a strong financial platform that will be the bedrock for accelerated future growth. • It’s net worth now stands at over Rs. 5,297 crore, as on 31st March, 2007, placing us among the top 3 private sector Indian companies in the financial services sector, after lClCl and HDFC. • As before, It’s enjoy the highest credit ratings, of `A1' and `F1+', awarded by ICRA and FITCH, respectively.


Reliance Money is a comprehensive financial solutions provider offering a complete basket of financial services. Through Reliance Money , currently , a customer will be able to transact amongst others, in equity and commodity , derivatives , offshore investments, IPO’s , mutual funds and insurance products. At present the company has more than 350 employees across 75 locations with a total number of 42 offices. Reliance Money can be segregated into 4 main products which include: 1- Reliance Life Insurance Plans 2- Reliance General Insurance policies 3- Reliance Mutul Funds 4- Reliance On line trading facility

Board Of Directors:1. Anil Dhirubhai Ambani,Chairman 2. Amitabah Jhunjhunwala,Vice Chairman 3. Rajendra P. Chitale,Director 4. C.P. Jain,Director



Reliance Life Insurance offers you products that fulfill your savings and protection needs. Our aim is to emerge as a transnational Life Insurer of global scale and standard. Reliance Life Insurance is an associate company of Reliance Capital Ltd. Which along with its associates has acquired 100% shares in AMP Samna Life Insurance Co Ltd. Reliance Life Insurance has a pan presence and a range of products catering to individual as well as corporate needs. Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based life Insurance solution to individuals and corporate . There are various plans which are offered for individuals & employees by Reliance Life insurance. With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs. 450 billion. Together with banking services, it adds about 7 per cent to the county’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. A well-developed and evolved insurance sector is needed for economic development as it provides long-term funs for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country.


Historical Perspective
The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more riskier for coverage. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds 20’s sullied insurance business in Indian. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956 , brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization . This was in conformity with the Government’s chosen path of State lead planning and development. The (non-life) insurance business continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company and


United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC)

Vision & Mission
Empowering everyone live their dreams.

Create unmatched value for everyone through dependable, effective, transparent and profitable life insurance and pension plans.

Our Goal
Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:
• • •

Emerge as transnational Life Insurer of global scale and standard Create best value for Customers, Shareholders and all Stake holders Achieve impeccable reputation and credentials through best business practices



RLIC has been one of the fast gainers in market share in new business premium amongst the private players with an incremental market share of 4.1% in the Financial Year 2007- 08 – from 3.9% in April 07 to 8% in Feb 08. ( Source: IRDA)

Also continues to be amongst the fast growing Private Life Insurance Companies with a YOY growth of 195% in new business premium as of Mar’08.

A Company that has crossed 1.7 Million policies in just 2 years of operation, post take over of AMP Sanmar business.

Initiated Express Life – an Unique ’Over the Counter’ sales process for Unit Linked Insurance Policies in the Industry.

Accomplished a large distribution ramp-up in the Industry in a short span of time by opening 600 branches in 10 months taking the overall branch network above 740.

RLIC continues to be one of the two Life Insurance companies in India to be certified ISO 9001:2000 for all the processes.

Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007-Ceritificate


Merit in the Financial Services category by Council for Fair Business Practices (CFBP).


RELIANCE LIFE INSURANCE offers a complete range of insurance products INDIVIDUAL PLANS: SAVING (Endowment) 
Reliance Super Invest Assure Plan

 Reliance Total Investment Plan Series I

        

Reliance Wealth + Health plan Reliance Automatic Investment plan Reliance Money Guarantee plan Reliance Cash Flow plan Reliance Market Return plan Reliance Endowment plan Reliance Special Endowment plan Reliance Whole Life plan Reliance Connect 2 Life plan


 Reliance Total Investment Plan -Pension  Reliance golden years plan  Reliance golden years plan value  Reliance Automatic Investment Plan  Reliance golden years plan plus

Reliance Total investment plan (new)

 Reliance automatic investment plan (new)  Reliance money guarantee plan  Reliance market return plan  Reliance child plan

 Reliance term plan  Reliance simple term plan  Reliance special term plan  Reliance credit guardian plan  Reliance credit guardian plan


What if customer already has Life Insurance?
As an individual, for the extent of financial protection you need is different from that as a married man which in turn is different from that as a parent. At each life stage, it is necessary to re-evaluate the amount of protection and provision you require and adjust for the same. Below are some of the events in you life for which you should reevaluate and plan your life insurance needs.

Life Stages

Marriage Birth of a child Schooling of child College education of child Marriage of child


Reliance Super InvestAssure Plan:RLIC Super Investassure Plan promises guaranteed additions, with a complete flexibility to gain control our your investments vis – a –vis your finanical needs and yourrisk appetite. How do Guaranteed Additions work ? Get upto 250% of your first year basic premium as Guaranteed Additions. On the 10th policy anniversary, 50% of first year basic premium will be added to the fund as guaranteed additions. There after on every 5th policy anniversary 50% will be added to the fund

Who is the Insured?
Proposer or who so ever above age 30 days and up to 60 years at inception of the policy. However insurance cover depends on entry age of life assured.

Flexible Premium
We give you the flexibility to choose your premium amount.

Who pays the Premium?

What happens on the Death of Life Assured?
Total Fund Value OR Sum Assured whichever is higher at the time of intimation of death is payable to nominee.

What happens on Maturity?
On survival up to maturity total fund value is payable.


What are the charges applicable under the plan?
The charges applicable under the plan are Premium Allocation charge, Fund Management charge, Policy Administration charge Miscellaneous charge (based on Sum Assured), Mortality charge and Service Tax

What are the additional benefits available?
 Top up  Switching  Money @ your wish  Flexibility  Premium Redirection


When does risk commence under the plan?
Risk cover depends on the entry age of life assured, not earlier than 6th year last birthday.

Investment Option
Unmatched flexibility to choose funds out of eight fund options in order to suit your risk appetite:

1. Equity Fund 2. Pure Equity Fund 3. Infrastructure Fund 4. Energy Fund 5. Midcap Fund 6. Corporate Bond Fund 7. Money Market Fund 8. Gilt Fund.

What are the tax benefits available under this plan
Tax deduction under Section 80C and premiums paid tax deduction under Section 80D of the Income Tax Act, 1961.


Reliance Market Return Plan:You have always aspired for the best in life. And we help you achieve just that. With Reliance

Market Return plan you can have the twin advantage of insurance protection as well as reaping the benefits of investment growth. It is a flexible plan which works all through your life and meets the changing requirements like additional protection, liquidity through cash, option to invest in different asset class, steady golden years and many more.

Key Features – Reliance Market Return Plan:


Twin benefit of market linked return and insurance protection A Unit Linked Plan, different form traditional Life Insurance products, with maximum maturity age of 80 years Option to create your own portfolio depending on your risk appetite Choose from 4 different investment funds Flexibility to switch between funds







Option to pay regular as well as single premium & Top-ups Option to package with Accidental riders Flexibility to increase the Sum Assured Liquidity through partial withdrawals




Reliance Automatic Investment Plan :The Key benefits of Reliance Automatic Investment Plan are as follows:

A smart plan which adapts to your changing risk profile with increasing age Option to lower the average cost of units through systematic transfer of your funds Flexibility to switch between funds and plans Options for additional Insurance cover available through riders

Key Features Reliance Automatic Investment Plan

Two plan options to choose from Ready-made and Tailor-made Life Stage asset allocation to ensure automatic change in investment patterns, under the Ready-made Plan option


Freedom to decide your own fund mix based on your risk profile under the Tailormade Plan

Regular, limited, single premium paying options Unmatched flexibility through our ‘Exchange Option’ Liquidity in the form of partial withdrawal Option to avail of Accidental Death Benefit, Accidental Total, Premium Disability

and Term Insurance riders .

Reliance Total Investment Plan Series 2:Often we notice in our own lives and those of others, how the smallest alteration makes us change our dreams. And sometimes , we are even forced to let go of these very dream that have been the cause of hope and happiness in our lives. All of us desire a security, a security that will not just help us hold on to our dreams, but also make them larger and fulfill them. It is this security that Reliance Life Insurance Company Limited promises to bring to you with its Total Investment Plan Series II Pension. To know more, read further… We value your dreams in this journey of life. Reliance Total Investment Plan Series- II Pension (TIPS-II Pension) are the eye to let you see them becoming reality. Your need for investment keeps changing at different stages of life.


We promise to walk through every need with you in the span spent with us and ever beyond that and so on… Whether it is start of your career, your marriage, birth of child, education of children, their marriage, your old age requirements everywhere you would find Reliance Total Investment Plan Series II- Pension assisting you financially and

thereby providing relief mentally too in totality .Utilize our multifarious flexibility options at par as per your convenience. As you progress on this ladder of life we provide you the platform to increase your investment component. With the

Reliance TIPS- II Pension you can meet all your financial needs, without the complexity of managing multiple products.

Key Features:This is a Single premium unit linked pension plan with options to purchase the same plan ith reduced allocation charges in subsequent policy years. Since more premium is allocated towards investment due to lower allocation charges on subsequent purchases greater would be the returns. Purchasing the same plan in the subsequent years is an option. 1st purchase would be called as “Classic” 2nd purchase would be called as “Silver” 3rd purchase would be called as “Gold” 4th purchase would be called as “Diamond” 5th purchase would be called as “Platinum” Once the client purchases the first policy there will full flexibility for the client as to when second and subsequent purchase can be made and how much premium should be paid for each purchase subject to the following -


1. The minimum premium on each purchase should be at least Rs. 25,000. 2. The maturity date on each purchase cannot exceed 70 years. 3. All the polices should mature on maturity date of the First purchase.

4. The term of the polices purchased during second , third , Fourth and fifth policy years will be 9, 8, 7 and 6 respectively.

Plan Objectives:1. 2. 3.
Tax benefit undr Sec. 80CCC of Income Tax Act 1961. Investment opportunity with flexibility. Control over your investments.

Reliance Child Plan:As a parent, it is only natural to dream of a smooth and blissful life for your child. Which is exactly why you need to secure your child’s tomorrow, today.


Reliance Child Plan helps you save systematically so that you can give your child the muchneeded financial security in the future. Simply put, Reliance Child Plan gives you the freedom to enjoy every moment with your child today, without worrying about his/her tomorrow.

Key Features:-

Risk protection for you during the term of the Policy Accumulated bonus at the end of the Policy Term 25% of Sum Assured payable every year as lump sum benefit during the last four Policy anniversaries

All future premiums are waived in the event of unfortunate loss of life Guaranteed Fixed Benefits continue even after loss of life of the Policyholder More value for your money by way of High Sum Assured Rebate Choose to add the benefit of two riders – Critical Illness Rider and Accidental Death Benefit & Accidental Death Benefit & Total and Permanent Disablement Rider

Policy participates in profit even after the loss of life of the Life Assured


Reliance Golden Year Plan:-

Retirement means different things to different people, while some want to relax and take a trip around the world, some want to start up a venture of their own, and pursue a dream harnessed for years.

The power to make your autumn years special lies only with you. The Reliance Golden Years Plan gives you the power and the right kind of solution - A retirement plan that allows you to save systematically and generate the much-needed corpus to make your olden years look golden.


Key Features :-

Invest systematically and secure your golden years


A flexible unit-linked pension product that is different from traditional life insurance products with Vesting Age between 45 and 70 years

Four different investment funds to choose from Flexibility to switch between funds Option to pay Regular, Single as well as Top-up Premiums Flexibility to advance/extend your Vesting Age Tax free commutation up to one third of Fund Value at Vesting Age.

Reliance Golden years plan Plus:-

There will come a day when you will hang up your boots and relax. But in order to achieve that ultimate stress free mind set for your autumn years, it is important that you plan now! Fulfill your dream of building up a minimum desired retirement fund which will ensure the independence you deserve.

Key Features:-


A flexible Unit-linked Pension product, different from traditional products with Vesting Age between 45 and 64 years

Invest systematically and secure your golden years Four different investment funds to choose from Choose to switch between funds Flexibility to advance your Vesting Age Tax free commutation up to one third of fund value at Vesting Age .


Fund Performance

Fund Name GG - Balanced Fund GG - Capital Secure Fund GG - Growth Fund GLE - Corporate Bond Fund GLE - Equity Fund GLE - Gilt Fund GLE - Money Market Fund GSA - Balanced Fund GSA - Capital Secure Fund AIP - Corporate Bond Fund GSA - Growth Fund AIP - Equity Fund AIP - Fund A AIP - Fund B AIP - Fund C AIP - Gilt Fund AIP - Money Market Fund

NAV per Unit 10.5562 11.1466 10.0422 10.2861 6.5224 10.1693 10.5236 13.4130 10.1979 10.7679 8.7013 9.1736 9.8436 10.3985 10.3582 10,8559

Fund Performance


GYP - Balanced Fund GYP - Capital Secure Fund GYP - Equity Fund GYP - Growth Fund MGP - Fund D MGP - Fund E MGP - Fund F MGP - Return Shield Fund MRP - Balanced Fund MRP - Capital Secure Fund MRP - Equity Fund MRP - Growth Fund SCP - Equity Fund SCP - Fund G SCP - Fund H SCP - Return Shield Fund SIP - Corporate Bond Fund SIP - Energy Fund SIP - Equity Fund

13.5755 12.3290 10.2406 11.8946 10.5308 10.4514 10.4340 10.7290 13.5666 12.2918 20.6010 14.9157 6.6446 9.4353 8.6480 10.1227 9.9022 9.5228

MAJOR PLAYERS OF LIFE INSURANCE IN INDIA:1. Life Insurance Corporation of India 2. ICICI prudential Life Insurance 3. HDFC Standard Life Insurance 4. Max New York Life Insurance


5. Birla Sun Life Insurance 6. Om Kotak Mahindra Life Insurance 7. Reliance Life Insurance 8. Allianz Bajaj Life Insurance 9. Ing Vyasa Life Insurance 10. SBI Life Insurance 11. Metlife Insurance 12. Sahara Life Insurance 13. Aviva Life Insurance 14. TATA Aig life Insurance

A Mutual Fund is trust that pools the savings of a number of investors who share a common financial goal . The money thus collected is then invested in capital market instrument such as shares , debentures and other securities . The income earned through these investments and the capital appreciation realized are shared buy its unit holders in proportion to the number of unit owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified , professionally


managed basket of securities at a relatively low cost. The flow chart below describe broadly the working of a mutual fund : The history of mutual funds in India can be broadly divided into four distinct phases .

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 . In 1978 UTI was de linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory 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 )
The year 1987 marked the entry of non – UTI , public sector mutual funds set up by public sector banks a 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 Cenrabank Mutual Fund Mutual (Jun 90), Fund ( Aug 89 ) ,Indian Bank of Baroda Bank Mutual ( Dec 87 ) , Punjab Mutual Fund Fund National Bank

(Nov 89 ), Bank of India

(Oct 92). LIC established its fund in

June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993 , the mutual fund industry had assets under management of Rs. 47,004 crores and then the mutual funds industry flourished further.

Third Phase – 1993-2003 ( Entry of Private Sector Funds )
With the entry of private sector funds in 1993, a new era started in Indian mutual fund industry, giving he 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 he 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 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 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 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


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.

Reliance Mutual Fund (RMF)
Reliance Mutual Fund, a part of the Reliance – Anil Dhirubhai Ambani Group (R-ADAG) is one of the fastest growing mutual funds in the country . Reliance Mutual Fund offers investors a well rounded portfolio of products of meet varying investor requirements . Reliance Mutual Fund has a presence in over 115 cities across the country , an investor base of over 3.1 Million and manages assets over Rs. 39019 crore as on 31 Jan 2007.

Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset

Management Ltd. A wholly owned subsidiary of Reliance Capital Ltd. Reliance Capital is one of India’s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth . Reliance Capital has interests in asset management and mutual funds , life and general insurance , private equity and proprietary investments , stock broking and other financial services .


There are three types of schemes which are provided to the investors under these mutual funds and they are as follows.

Equity / Growth Schemes.
The aim of growth funds is to provide capital appreciation over the medium to longterm. Such schemes normally invest a major part of their corpus un equities . Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option , appreciation , etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form . the mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long – term outlook seeking

appreciation over a period of time .

Debt/ Income Schemes
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income Government securities such as bonds. Corporate debentures, less risky

securities an money market instruments . Such funds are

compared to equity schemes. These funds are not affected equity markets. However, opportunities

because of fluctuations in limited in

of capital appreciation are also

such funds . The NAV’s of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAV’s of such funds are likely to increase in the


short run and vice versa. However, long term investors may not bother about these fluctuations.

Sector Specific Schemes
These are the funds / schemes which invest in the securities of only those sectors or industries as specified in the offer documents . e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods ( FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the respective sectors / industries.

ADVANTAGES OF MUTUAL FUND :Mutual Funds are of great importance to the investors. Some of the advantages of mutual funds could be summarized as follows:

The advantages of investing in a Mutual Fund are
 Professional Management  Diversification  Convenient Administration  Return Potential  Low Costs  Liquidity  Transparency  Flexibility  Choice of schemes  Tax benefits


Well regulated 

TYPES OF MUTUAL FUND SCHEMES;Wide variety of Mutual Fund Schemes exist to cater to the needs such as financial position , risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry .

 Open – Ended Schemes  Close – Ended Schemes  Interval – Schemes

 Growth Schemes  Income Schemes  Balanced Schemes  Money Market Schemes

 Tex Saving Schemes  Special Schemes  Index Schemes


 Sector Specifies Schemes

Demat Account
Demat account allows you to buy, sell and transact shares without the endless paperwork and delays. It is also safe , secure and convenient .

What is Demat account ?
Demat refers to a dematerialized account. Just as you have to open an account with a bank if you want to save your money, make cheque payment etc, you need to open a Demat account If you want to buy or sell stocks. So it is just like a bank account where money is replaced by shares. You have to approach the DPs ( remember, they are like bank branches ) , to open your Demat account. Let’s say your portfolio of shares looks like this : 40 of Infosys, 25 of Wipro , 45 of HLL and 100 of ACC. All these will show in your Demat account . So you don’t have to possess any physical certificates showing that you own these shares. They are all held electronically in your account As you buy and sell the shares, they are adjusted in your account . Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions .

Is a Demat account a must ?


Nowadays, practically all trades have to be settled in dematerialized form . Although the market regulator, the Securities and Exchange Board of India (SEBI) , has allowed trades of upto 500 shares to be settled in physical form , nobody wants physical shares any more . So a Demat is a must for trading and investing.

Why Demat ?
The Demat account reduces brokerage charges , makes pledging / hypothecations of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity , avoids confusion in the ownership title of securities , and provides easy receipt of public issue allotments . It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit , Further, it eliminates risks associated with forgery , counterfeiting and loss due to fire, theft or mutilation . Demat account holders can also avoid stamp duty ( as against 0.5 per cent payable on physical shares ), avoid filling up of transfer deeds , and obtain quick receipt of such benefits as stock splits and bonuses.

Demat Benefits ;The benefits are enumerated below –
 A safe and convenient way to hold securities ;  Immediate transfer of securities;  No stamp duty on transfer of securities


Elimination of risks associated with physical certificates such as bad delivery ,  fake securities , delays , thefts etc.  Reduction in paperwork involved in transfer of securities;  Reduction in transaction cost;  No odd lot problem , even one share can be sold;  Nomination facility.  Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately;  Transmission companies;  Automatic credit into Demat account of shares , arising out of bonus / split / consolidation / merger etc. Holding investments in equity and debt instruments in a single account.  of securities Is done by DP eliminating correspondence with


Standard document require to open an Online Trading Account
1- Proof of residence ( Address proof)
o Driving license o Voter’s ID o Passport o Photo credit card o Utility Bill ( Telephone, Electricity etc) Bank Statement o

2- Proof of identity
o Driving license o Voter’s ID o Passport o Photo ration card

3- PAN Card 4- Three photographs


Brokerage and fees :
Reliance Money is offering lowest brokerage rates in today’s online stock trading industry . The brokerages are as low as 0.075% for delivery based trading and 0.02 for now delivery . Note: The above figures may not accurate , pleases contact your nearest Reliance Money broker to check the brokerages they are offering .

Advantages of Reliance Money :1- Extra security features with “Security Token” which is the most secure and tested technology in computer world . 2- Simple, easy and fast online stock trading . 3- Almost all investment options are available under one account including Equity Trading , Derivatives , Forex, Commodity , IPO Mutual Funds and Insurance. 4- Branches are now available in all major cities and the number is growing Branches are open from 9 am to 9pm.


Benefits of having a Reliance Money Account
1- It’s Cost – effective
You pay comparatively lower transaction fees. As an introductory offer, we invite you to pay a flat fee of Just Rs. 500/ and transact through Reliance Money . This fee is valid for two months or a specified transaction value. See the Table for details .

Validity (whichever is earlier )
Access Fee Time Validity Turnover Validity 500 1350 2500 2 months 6 months 12 months Rs. 1Cr. Rs. 3Cr. Rs. 6Cr.

Turnover limit

Non-deliver turnover Rs.90 Lac Rs.2.7 Cr. Rs.5.4 Cr.

Delivery turnover Rs. 10 Lac Rs. 30 Lac Rs. 60 Lac

2- It’s offers Single- Window Access
Through Reliance & Commodity Money’s associates you can transact in Equity, , equity IPOs ,

Derivatives , Offshore Investments

, Mutual


Life Insurance , Money Transfer, Money Changing and Credit Cards , amongst other.

3- Its Covenient


You can assess Reliance Money’s services through 1- The Internet , 2- Transaction Kiosks, 3- The phone (Call & Transact ) and through 4- Our all – India network of associates On an assisted trade ( through the Call Centre or our network of associates ) a charge of Rs. 12 per executed trade will be applicable.

4- It’s Safe
Your account is safe guarded with a unique security number that changes every 32 seconds. This number works as a dynamic password to keep your account extra safe.

5- It provides you a Demat Account
You get your own Demat Account with Reliance Capital at an annual fee of just Rs. 50/-

6- It provides you a 3… in … I facility
You can access your Banking, Trading and Demat Account through a single window and transfer funds across accounts seamlessly !

7- It provides you value – added services


At www.reliancemoney.com you get 1- Reliable research, including views of external experts with an enviable track record. 2- Live news updates from Reuters and Dow Jones. 3- CEOs/ Epert views on the economy and financial markets. 4- Tools that help you plan investments , tax retirement, etc , in the personal finance section . 5- Risk Analyzer for analysis of your risk profile . 6- Asset allocates to bold an appropriate investment portfolio.



Bombay Stock Exchange (BSE)

The oldest exchange in Asia and the first exchange in the country to be granted permanent recognition under the Securities Contract Regulation Act, 1956, Bombay Stock Exchange Limited (BSE) has had an interesting rise to prominence over the past 130 years. While the BSE is now synonymous with Dalal Street, it wasn’t always so. In fact the first venues of the earliest stock broker meetings in the 1850s were amidst rather natural environs


- under banyan trees - in front of the Town Hall, where Horniman Circle is now situated. A decade later, the brokers moved their venue to another set of foliage, this time under banyan trees at the junction of Meadows Street and Mahatma Gandhi Road. As the number of brokers increased, they had to shift from place to place, and wherever they went, through sheer habit, they overflowed in to the streets. At last, in 1874, found a permanent place, and one that they could, quite literally, call their own. The new place was, aptly, called Dalal Street.

The Journey Of BSE
The journey of BSE is as eventful and interesting as the history of India’s securities markets. India’s biggest bourse, in terms of listed companies and market capitalisation, BSE has played a pioneering role in the Indian Securities Market - one of the oldest in the world. Much before actual legislations were enacted, BSE had formulated comprehensive set of Rules and Regulations for the Indian Capital Markets. It also laid down best practices adopted by the Indian Capital Markets after India gained its Independence.



The Bombay Stock Exchange Building

Perhaps, there would not be any leading corporate in India, which has not sourced BSE’s services in resource mobilization. BSE as a brand is synonymous with capital markets in India. The BSE SENSEX is the benchmark equity index that reflects the robustness of the economy and finance. At par with international standards, BSE has been a pioneer in several areas. It has several firsts to its credit even in an intensely competitive environment. They are: • • • • First in India to introduce Equity Derivatives First in India to launch a Free Float Index First in India to launch US$ version of BSE Sensex First in India to launch Exchange Enabled Internet Trading Platform 49

• •

First in India to obtain ISO certification for Surveillance, Clearing & Settlement BSE On-Line Trading System’ (BOLT) has been awarded the globally recognized the Information Security Management System standard

BS7799-2:2002. • • First to have an exclusive facility for financial training Moved from Open Outcry to Electronic Trading within just 50 days

An equally important accomplishment of BSE is the launch of a nationwide investor awareness campaign - Safe Investing in the Stock Market - under which nationwide awareness campaigns and dissemination of information through print and electronic medium was undertaken. BSE also actively promoted the securities market awareness campaign of the Securities and Exchange Board of India. In 2002, the name The Stock Exchange, Mumbai, was changed to BSE. BSE, which had introduced securities trading in India, replaced its open outcry system of trading in 1995, when the totally automated trading through the BSE Online trading (BOLT) system was put into practice. The BOLT network was expanded, nationwide, in 1997. It was at the BSE's International Convention Hall that India’s 1st Bell ringing ceremony in the history Capital Markets was held on February 18th, 2002. It was the listing ceremony of Bharti Tele ventures Ltd. BSE with its long history of capital market development is fully geared to continue its contributions to further the growth of the securities markets of the country, thus helping India increase its sphere of influence in international financial markets.


SENSEX Calculation Methodology
SENSEX is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization. The base period of SENSEX is 1978-79 and the base value is 100 index points. The notation 1978-79=100 often indicates this. The calculation of SENSEX involves dividing the Freefloat market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scripts etc. During market hours, prices of the index scripts, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time.


National Stock Exchange (NSE)

The Organization
The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

NSE Group

The group of National Stock Exchange Of India comprises of the following organizations:• • • • • NSCCL IISL NSE.IT NSDL DOTEX INTL LTD.


The logos of these subsidiaries of NSE are: -






DotEx Intl. Ltd.


The trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-line fullyautomated screen based trading system (SBTS) where a member can punch into the computer quantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. SBTS electronically matches orders on a strict price/time priority and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It allows faster incorporation of price sensitive information into prevailing prices, thus increasing the informational efficiency of markets. It enables market participants, irrespective of their


geographical locations, to trade with one another simultaneously, improving the depth and liquidity of the market. It provides full anonymity by accepting orders, big or small, from members without revealing their identity, thus providing equal access to everybody. It also provides a perfect audit trail, which helps to resolve disputes by logging in the trade execution process in entirety. This sucked liquidity from other exchanges and in the very first year of its operation, NSE became the leading stock exchange in the country, impacting the fortunes of other exchanges and forcing them to adopt SBTS also. Today India can boast that almost 100% trading take place through electronic order matching. Technology was used to carry the trading platform from the trading hall of stock exchanges to the premises of brokers. NSE carried the trading platform further to the PCs at the residence of investors through the Internet and to handheld devices through WAP for convenience of mobile investors. This made a huge difference in terms of equal access to investors in a geographically vast country like India.

The trading network is depicted in Figure below NSE has main computer which is connected through Very Small Aperture Terminal (VSAT) installed at its office. The main computer runs on a fault tolerant STRATUS mainframe computer at the Exchange. Brokers have terminals (identified as the PCs in the Figure 1) installed at their premises, which are connected through VSATs/leased lines/modems. An investor informs a broker to place an order on his behalf. The broker enters the order through his PC, which runs under Windows NT and sends signal to the Satellite via VSAT/leased line/modem. The signal is directed to mainframe computer at NSE via VSAT at NSE's office. A message relating to the order activity is broadcast to the respective member. The order confirmation message is immediately displayed on the PC of the broker. This order matches with the existing passive order(s), otherwise it waits for the active orders to enter the system. On order matching, a message is broadcast to the respective member. The trading system operates on a strict price time 54

priority. All orders received on the system are sorted with the best priced order getting the first priority for matching i.e., the best buy orders match with the best sell order. Similar priced orders are sorted on time priority basis, i.e. the one that came in early gets priority over the later one.

Figure: Trading Network

The computer keeping the system transparent, objective and fair matches orders automatically. Where an order does not find a match, it remains in the system and is displayed to the whole market, till a fresh order comes in or the earlier order is cancelled or modified. The trading system provides tremendous flexibility to the users in terms of kinds of orders that can be placed on the system. Several time-related (good till cancelled, good till day, immediate or cancel), price-related (buy/sell limit and stop loss orders) or volume related (all or none, minimum fill, etc) conditions can be easily built into an order. The trading system also provides complete market information on-line. The market screens at any point of time provide complete information on total order depth in a security, the five best buys and sells available in the market, the quantity traded during the day in that security, the


high and the low, the last traded price, etc. Investors can also know the fate of the orders almost as soon as they are placed with the trading members. Thus the NEAT system provides an Open Electronic Consolidated Limit Order Book (OECLOB). Limit orders are orders to buy or sell shares at a stated quantity and stated price. If the price quantity conditions do not match, the limit order will not be executed. The term “limit order book” refers to the fact that only limit orders are stored in the book and all market orders are crossed against the limit orders sitting in the book. Since the order book is visible to all market participants, it is termed as an ‘Open Book’.


Some key alterations to the existing system of investor education and protection can introduce a lot of transparency and efficiency into it. The way to do this will be to introduce a major leveling agent, which will do away with the opaqueness that the existing system is shrouded with. This leveling agent is the internet. It has to be understood that the internet is primarily an information transfer agent and has a very vital role in our proposed system. However, my system is not restricted to a mere website and an email address. The website will act as a facilitator, very much like a lubricating system, but needless to say, human will and effort have to be the key forces that will make it a success.


This system will have the following functions :

1. To effectively inform, educate and support the investor through his business dealings. The information will have an encouraging tone rather than the unsympathetic and cold legal and financial chatter that is generally found in support documentation. This is not a rule booklet but a resource for the layman.

2. To give prior warnings to an investor about any investment or any financial firm to which he might be investing his money in where such a warning is required. For example, his investment profile may not match his choice of investment or his financial firm may have a long record of ill treatment of investors.

3. To give the small investor the power to fight back any threat to his hard earned money. This will be achieved by the Reputation Rating System (RRS), which is explained later. This particular rating system would also ensure that the opportunities for ill-treating or harassing investors diminish with the growing popularity of reputation ratings.

4. To modify the arbitration and dispute resolution system so that even smaller investors with very low net worth can also seek & obtain expedited justice.


Stock Broking
You can invest your money in stock market in two ways:

1. Primary Market 2. Secondary Market

Primary market
Primary markets bring together buyers and sellers - either directly or through intermediaries by providing an arena in which sellers’ investment propositions can be priced, brought to the marketplace, and sold to buyers. In this context, the seller is called the issuer and the price of what’s sold is called the issue price. It is the initial market for any item or service. It also signifies an initial market for a new stock issue. The jargon also means a firm, trading market held in a security by a trader who performs the activities of a specialist by being ready to execute orders in that stock.

Secondary Market
Secondary Markets are the stock exchanges and the over-the-counter market. Securities are first issued as a primary offering to the public. When the securities are traded from that first holder to another, the issues trade in these secondary markets.


Top five shares traded at Bombay stock exchange are:
1. Tata Steel 2. Dr.reddy 3. Ranbaxy 4. ONGC 5. BHEL

Basic Information
Besides familiarity with the stock market, the transaction process, and having an account at a broker or sub-broker, knowledge of basic investment information is also important to making investment decisions. In this section, you can read about the basics of investment that often appear in stock market reports and discussions. 1. Market information Important data and information about the overall market situation that you often come across include:

Stock market index :There are a number of stock market indices but the most widely used is the SET Index, which calculates the average price of all listed shares weighted by the number of registered shares. Thus, price movements of large capitalization stocks have a greater influence on the movement of the SET Index than price changes of small capitalization stocks. Besides the SET Index , other stock price indices have been constructed to track market trends, for example the SET50 Index, Book Club Index, TISCO Price Index, and Sector Indices to track the price movements of individual sectors.


Market turnover:It's often quoted together with the SET Index to indicate how active the trading activities are. In a bullish market, turnover is high as investors trade actively.


Stock information
In addition to the market information above, it's essential to understand how to pick good stocks. Here are some basic investment principles.

Price:Stock price is an important factor to investors, as buying and selling influence stock price movements. At the end of the day, investors like to know how their stocks fared. Did they close higher? Lower? And by how much? The change in price of a stock also reflects the amount of money for investor decision-making whether to buy, sell, or hold. In stock valuation, price has to be considered in conjunction with other performance variables such as earnings per share and dividends. Stock price is therefore only one factor in your initial investment consideration.

Price-Earnings Ratio (P/E Ratio): The ratio is derived by comparing the Close Price (P) with Earnings per share (E). It is a measure of the stock's fundamental value. P/E Ratio is calculated by dividing the Close Price (P) with Earnings per share (E).

P/E = Close price or market price (P) 12-month earnings per share (E)


P/E ratio tells you how many years it will take the company's earnings to add up to its stock price at the time of calculation. For example, if the close price of stock ABC (P) is 100 Rs and its earnings per share (E) is 20 Rs, then its P/E Ratio equals 100/20 = 5. That is, at the time of calculation, it will take only 5 years of company ABC's earnings to equal its stock price A stock with low P/E ratio is preferable to one with a high P/E. Conversely, suppose stock DEF closes at 200 Rs and its earnings per share (E) is 20 Rs, its P/E Ratio equals 200/20 = 10. At the time of calculation, it will take 10 years of company DEF's earnings to equal its stock price. Comparing stock ABC with stock DEF, we can draw an initial conclusion that stock ABC is more attractive than stock DEF. In brief, a low P/E stock has more earnings potential or is cheaper than a high P/E stock, considering its earnings ability. Dividend Yield: Rate of dividend return, shown in percentage form. A stock with a high Dividend Yield is more attractive because you get a Higher rate of return in the form of dividends.

The formula for calculating Dividend Yield is

Dividend Yield = Dividend x 100 Stock Price
For example, if stock ABC has a market price of 20 Rs and pays a 2 baht dividend, its dividend yield is

2 20






Trading Volume: -

Trading volume or liquidity of a stock is important. It's easier to trade in/out of a stock with high liquidity or large trading volume. It's difficult to buy a stock which has a low liquidity or low trading volume because there are few sellers. And selling is difficult if there are few or no buyers when you want to sell because you urgently need the cash.

Financial Analysis:-

Analysis of a company's growth potential, stability, financial and management strengths, and profit potential for its investors. Financial analysis is a rather complex exercise and can be left until you've mastered more basic investment knowledge. Besides market conditions and individual stock factors, a myriad of other variables influence stock market and stock price movements Investors can follow them in various media reports

What is a Stock Share?
Corporations issue official-looking sheets of paper that represent ownership of the company. These are called stock certificates, and each certificate represents a set number of shares.

Why invest in the stock market?
When you buy stock in a corporation, you own part of that company. This gives you a vote at annual shareholder meetings, and a right to a share of future profits.

Why Sell Stock?

The reasons people sell their stock are more complex. A person may just need the money. He or she may have watched the price go up, and have a hunch this is a good time to lock in their profit and sell some or all their shares.

How are shares bought and sold on the NASDAQ?
If an investor asked his or her broker to buy shares in a company, the broker would call a few dealers, known as market makers, finding the best price for the customer.

How are stocks traded on the New York Stock Exchange?
Stocks that are bought and sold on the NYSE and the American Stock Exchange (AMEX) use an auction system.

What are ECNs?
Mutual Funds do much of their trading among themselves and with other institutional investors directly through electronic computer networks (ECNs), the largest being Instinet.

Supply and Demand
A stock's price movement, up and down until the end of the trading day, is strictly a result of supply and demand. The SUPPLY is the number of shares offered for sale at anyone one moment. The DEMAND is the number of shares investors wish to buy at exactly that same time.

American Stock Exchanges


American stock exchanges by year of inception.

International Stock Exchange
International stock exchanges by location.

What fuels demand for a stock?
Wall Street has said for years that the market is efficient, and the price of a stock represents everything that is known about a company up to that moment. Wrong, stock prices over-react to news, both good and bad.

More to Know About Stock Trading
Probably the first thing you must understand, is that with any investment, there is always some risk. Even your savings account, insured by the United States Government, has the very real risk of inflation rising faster than the interest the bank pays you.

What is a Limit Order?
Most new investors place market orders, just buying or selling at the moment's current price. But you can place a limit order, in which you name the price that triggers your order to buy or sell.

Preferred Stock


When I was about 13 and first heard about ?preferred Investors that buy preferred stock are generally the conservative type, who are looking for a steady dividend that may be higher than they can achieve with A-rated bonds.

How to Buy Stock?
Buying stocks is not as simple as walking into a stockbroker's office and buying shares like you would a pair of shoes from a store. You are required to open an account with the brokerage, like opening an account at a bank.

How much money do you need to open a brokerage account?
Although most traditional full-service brokerage houses such as Merrill Lynch, Dean Witter, and Paine-Webber, and giant "discount" brokers such as Fidelity and Charles Schwab require a $2,000 ($1,000 for IRA's) opening balance, I have located 10 brokers who will establish your account with no money - $0.00!

Money Market Funds
Investments such as bank certificates of deposit (CDs) which are insured by the federal government, sound pretty good. You agree to tie up your money for anywhere from 30 days to 5 years to earn a guaranteed rate of interest.

Margin Loans and Investment
If you have at least $5,000 in cash and investments in your account, you can use available margin to increase your profits. But using margin doubles your risk!


Useful links about Reliance Money
Reliance Money Website: www.reliancemoney.com

2- Branch Locator : Reliance Money Branch Locator

Contact Information –
Website : www.reliancemoney.com

Email: CustomerCare@relianceMoney.com

3- Phone : 022-39886000



In Sampling the random sampling method is selected .

In the sample there are 45 Remisers, 8 Franchisees, 4 Web World and 20 Web Express, and 23 Direct Channel taken as samples and these the studied.

It is a descriptive research design.


AGE 18-25
As a % of total 0.25 0.58 0.17 1

Income above5 b/w 2-5 below 2

No. 6 14 4 24 INCOME



a bove 5 b/ w 2-5 be low 2


Life Insurance Cover Yes No

No. 10 14 24

As a % of total 0.42 0.58 1


42% 58%

Ye s No


Invest or Not Yes No

No. 13 11 24

As a % of total 0.54 0.46 1


46% 54%

Ye s No

Reasons for Investment Asset Purchase Building Cash Reserves Retirement Others

No. 8 4 3 2 17

As a % of total 0.470588235 0.235294118 0.176470588 0.117647059 1

REAS ONS FOR INVES TMENTS Asset Purchase 12% 18% 24% 46% Building Cash Reserves Retirem ent Others


PORTFOLIO Mutual Funds Fixed Deposits ULIP Share markets Others

No. 10 5 4 7 3 29

As a % of total 0.344827586 0.172413793 0.137931034 0.24137931 0.103448276 1

PORTFOLIO 10% 24% 14% 17% Mutual Funds Fixed Deposits ULIP Share m arkets Others



No. 2 1 1 4

As a % of total 0.5 0.25 0.25 1



LIC 25%



M.F Co. Franklin ICICI Fidelity Reliance Others

No. 4 2 2 4 4 16

As a % of total 0.25 0.125 0.125 0.25 0.25 1

MUTUAL FUNDS Others 25% Franklin 24% ICICI 13% Franklin ICICI Fidelity Reliance Others

Reliance 25%

Fidelity 13%

RETURNS ON M.F. 10%-20% 20%-30% above 30%

No. 5 3 2 10

As % of total 0.5 0.3 0.2 1


20% 50% 30%

10%-20% 20%-30% above 30%


AGE 25-35
Income above5 b/w 2-5 below 2 No. 11 19 5 35 Incom e As a % of total 0.314285714 0.542857143 0.142857143 1




above5 b/ w 2-5 below 2

Invest or Not Yes No

As a % of No. total 26 0.74285714 9 0.25714286 0 35 1 INVES OR NOT T

26% Yes No 74%

Life Insurance


As a % of 72

Cover Yes No

total 25 0.71428571 10 0.28571429 0 35 1 LIFE INS URANCE COVER

29% Yes No


Reasons for Investment Income replacement Asset Purchase Building Cash Reserves Retirement Funding for Children Others

No. 4 6 16 7 9 2 44

As a % of total 0.090909091 0.136363636 0.363636364 0.159090909 0.204545455 0.045454545 1


Income replacement Asset Purchase Building Cash Reserves Retirement Funding for Children Others

20% 16%





PORTFOLIO Mutual Funds Fixed Deposits ULIP Share markets Others

No. 13 14 16 10 8 61

As a % of total 0.213114754 0.229508197 0.262295082 0.163934426 0.131147541 1

PORTFOLIO Mutual Funds Fixed Deposits ULIP Share m arkets Others

13% 16% 27%

21% 23%

ULIP Scheme ICICI LIC Bajaj Allianz Others


As a % of total 6 0.285714286 7 0.333333333 4 4 21 0.19047619 0.19047619 1

ULIP Schem e

19% 19%

29% 33%

ICICI LIC Bajaj Allianz Others


Type of Fund Equity Balanced Cash

No. 13 3 5 21

As a % of Total 0.619047619 0.142857143 0.238095238 1

Type of Fund




Equity Balanced Cash

Returns Below 10% 10%-20% 20%-30% Above 30%

No. 2 7 3 4 16

As a % of Total 0.125 0.4375 0.1875 0.25 1






Below 10% 10%-20% 20%-30% Above 30%

M.F Co. Franklin


As a % of total 3 0.115384615 75

ICICI Fidelity Reliance HDFC Others

3 5 5 3 7

0.115384615 0.192307692 0.192307692 0.115384615 0.269230769 M.F Co. 12% Franklin ICICI Fidelity Reliance HDFC Others


12% 19%



RETURNS ON M.F. 10%-20% 20%-30% above 30%

No. 3 4 6 13

As % of total 0.230769231 0.307692308 0.461538462 1


23% 46% 31%

10%-20% 20%-30% above 30%

AGE 35- 45


Invest No Yes

1 7

Invest 13% No Yes 87%

Life Insurance No Yes

1 9

Life Insurance

10% No Yes 90%

Investment reasons Asset Purchase Building Cash reserves

2 6


Funding for children Income replacement Retirement

4 2 2 Investm Reasons ent Asset Purchase Building Cash reserves Funding for children Incom e replacem ent Retirem ent

13% 13%


37% 24%

Most Important High returns Safety Liquidity Tax free proceeds Flexibility
Most Im portant 8 7 6 5 4 3 2 1 0

5 7 4 3 1


Tax free proceeds

Hig returns h

Portfolio Government securities




4 78

Mutual funds ULIP Share Markets Fixed Deposits Bonds

5 7 3 1 3


Governm ent securities Mutual funds ULIP Share Markets

13% 4% 13%


22% Fixed Deposits 31% Bonds


2 3 2 0






Returns Below 10% 10%-20%

1 4


20%-30% Above 30 %

1 1

Return in ULIP 14% 14% 58% 14%

Below 10% 10%-20% 20%-30% Above 30 %


2 2 1 1 1

Mutual Fund Co. 14% 14% 14% 29% Reliance ICICI HDFC SBI GLSS




Life Insurance No Yes

4 20

Life Insurance 17% No Yes 83%

Invest No Yes

7 17


29% No Yes 71%

Portfolio Government securities Mutual funds

8 5


ULIP Share Markets Fixed Deposits Bonds

9 6 13 5


Governm ent securities Mutual funds ULIP Share Markets Fixed Deposits Bonds


17% 11%




Investment reasons Asset Purchase Building Cash reserves Funding for children Income replacement Retirement

3 11 6 1 5 Asset Purchase Building Cash reserves Funding for children Incom e replacem ent Retirem ent

Investm Reasons ent 12%

19% 4% 23%


Most Important High returns Safety Liquidity

12 16 6


Tax free proceeds Flexibility

10 6

Most Im portant 20 15 10 5 0

Series1 Safety Liquidity Flexibility ICICI LIC UTI Aviva Hig h returns Tax free proceeds 1 4 4 2 2 7 83


ULIP SCHEME 9% 37% 36%


FUNDS Equity Balanced

Debt Cash

0 0

0% 0%




Equity Balanced Debt Cash

Returns Below 10% 10%-20% Above 30 %

2 6 1

Returns in ULIP 11%



Below 10% 10%-20% Above 30 %


1 2 84

HDFC Franklin Fidelity UTI IDBI

1 1 1 1 1

Mutual Fund Co. 13% 13% 13% 13% 12% 24% 12%

Reliance ICICI HDFC Franklin Fidelity UTI IDBI

INCOME Below 2 b/w 2-5 Above 5 No. 3 9 6 18 INCOME As a % of Total 0.16667 0.5 0.33333 1




Below 2 b/ w 2-5 Above 5

Invest or Not Yes No

As a % No. of Total 13 0.72222 5 0.27778 85


0 1

Invest or Not

28% Yes No 72%

Life Insurance Cover Yes No

No. 15 3 18

As a % of Total 0.83333 0.16667 0 1

Life Insurance Cover

17% Yes No 83%

Reasons for Investment Asset Purchase Building Cash Reserves Retirement


As a % of total 7 0.26923 8 0.30769 3 0.11538



8 0.30769 26 1

Reasons for Investm ent Asset Purchase 31% 27% Building Cash Reserves Retirem ent Others



Investment Factors High returns Safety Liquidity Tax free proceeds Flexibility

Very Importa Somewhat Important nt Important 10 1 8 4 3 6 6 5 3 3

Less Important 1 1 1 0 3 1 2 3 2 2

Investment Factors Rating
100% 80% 60% 40% 20% 0% Tax free proceeds Flexibility Safety Liquidity High returns Less Important Somewhat Important Important Very Imporant

PORTFOLIO Mutual Funds


As a % of total 0.187 6 5


Fixed Deposits ULIP Share markets Government Securities Others

7 5 7 5 2 32

0.218 75 0.156 25 0.218 75 0.156 25 0.062 5 0.843 75





Mutua Funds l Fixe Deposits d ULIP Sha m rkets re a Governm Se ent curitie s Others


21% 16%

ULIP Scheme ICICI LIC Others

No. 1 3 2 6

As a % of total 0.16667 0.5 0.33333 1


ULIP Sche me


17% ICICI LIC 50% Othe rs

Type of Fund

17% Equity Balanced 83%

M.F Co. Franklin ICICI Reliance Others

No. 1 3 4 4 12

As a % of total 0.08333 0.25 0.33333 0.33333 1


M.F Co. 8% 25%



Franklin ICICI Reliance Others


Income above5 b/w 2-5 below 2

No. 15 32 6 53

As a % of total 0.28301886 8 0.60377358 5 0.11320754 7 1

Incom e




above5 b/ w 2-5 below 2


Invest or Not Yes No

No. As a % of total 36 0.679245283 17 0.320754717 0 53 1 Invest or Not

32% 68%

Yes No

Life Insurance Cover Yes No

No. As a % of total 34 0.641509434 19 0.358490566 0 53 1

Life Insurance Cover

36% 64%

Yes No

Reasons for Investment Income replacement


As a % of total 0.03636363 2 6


Asset Purchase Building Cash Reserves Retirement Funding for Children Others

0.16363636 9 4 22 9 9 4 55 0.4 0.16363636 4 0.16363636 4 0.07272727 3 1

Reasons for Investm ent

Incom e replacem ent Asset Purchase 16% Building Cash Reserves Retirem ent Funding for Children Others

16% 16%




PORTFOLIO Mutual Funds Fixed Deposits ULIP Share markets Government Securities Others

No. 19 19 18 15 6 7 84

As a % of total 0.22619047 6 0.22619047 6 0.21428571 4 0.17857142 9 0.07142857 1 0.08333333 3 0.92857142 9


PORTFOLIO 7% 8% 18% 21% 23%

Mutual Funds Fixed De posits


ULIP Share m ts arke Gove e rnm nt Securities Othe rs

Investment Concerns High returns Safety Liquidity Tax free proceeds Flexibility

Very Importa Somewhat Imporant nt Important 23 9 20 13 12 18 7 14 19 15

Less Important 4 4 6 8 5 2 1 2 4 4

Investment Factor Rating
100% 80% 60% 40% 20% 0% Tax free proceeds Flexibility Liquidity High returns Safety

Less Important Somewhat Important Important Very Imporant

ULIP Scheme ICICI LIC Reliance


As a % of total 0.363 8 64 0.363 8 64 3 0.136



3 22

36 0.136 36 1

ULIP Scheme ICICI 36% LIC Reliance Others

14% 14% 36%

Type of Fund

14% 32% 54%

Equity Balanced Cash

Returns on ULIP Below 10%


As a % of Total 4 0.181


10%-20% 20%-30% Above 30%

11 4 3 22

82 0.5 0.181 82 0.136 36 1

Returns on ULIP Below 10% 10%-20% 20%-30% Above 30%

14% 18%



M.F Co. Frankl in ICICI Fidelit y Relian ce Other s

No. 7 4 5 5 10 31

As a % of total 0.225 81 0.129 03 0.161 29 0.161 29 0.322 58 1


M.F Co. Franklin ICICI Fidelity Reliance Others

32% 16%

23% 13% 16%

Based on the work done in the company major findings of the study have been highlighted below…. 1. Most of the people are satisfied with the extent of their life insurance cover. They are not interested in buying more life insurance. 2. People do not consider life insurance as a good savings because of low returns. 3. As life insurance is a long-term contract. Maximum people do not have faith on private life insurance companies, they still prefer LIC. 4. Because of less advertising not many people are aware about private life insurance companies. 5. Most of the people do not know about broker, corporate agents and banc assurance, they rely on their agents only 6. The most preferred type of plan is money back. The reason being availability of funds after every five years, which can be used for paying further premium, thus


saving the regular income. Some people have no idea about what type of cover they have. 7. Most of the people feel that life insurance is essential but they think returns are low. 8. Some people have their doubts on the credibility and long stay of private insurance companies.

1. Advertising of the insurance product should stress on the need of security. 2. Insurance should be popularized as the means of securing future rather than saving tax. 3. New entrants should come out with innovative riders. 4. Policies should be issued quickly and with less formalities 5. Other service should also be improved. 6. Newspaper/Magazines and television are the most effective medium of advertising life insurance. 7. Insurance agents should be well trained.



1. Multi-channel distribution and one of the largest distribution networks in India. 2. Customer centric product and services. 3. Superior investment and risk management framework. 4. Company has maximum number of MDRT as well as good number of advisers. 5. Training process of the company is very strong. 6. Different plans for different peoples. 7. According to the change in surrounding environment like change in customer requirement.


1. 2. 3.

Companies are not focusing on outskirt and remote areas and villages. There is no plan for the low-income group. Fees of the adviser are high than the other company.



1. Insurance market is very big where company can expand its horizon in insurance industry. 2. Through good investment and insurance it is easy to top Indian customers. 3. The huge insurance market (77%) is left so company has opportunity to expand out products.


1. Its still difficult task to win the confidence of public towards private company. 2. The companies are facing major threats LIC that is an only government company. 3. Plans for all income groups are not available which can create adverse effect later on the market share of the company.


After having done all the analysis we come to the conclusion that customers who are businessman prefer demat account . By analyzing the various results obtained from the market survey following points van concluded about Reliance Money. 1- Customers are preferring Reliance Money for opening Demat Account because of less brokerage charges. 2- Some customers preferring Reliance Money because of their brand image and credibility in the market . 3- From all the products of Reliance Money customers prefer to buy Mutual Funds. 4- Customer are preferring investing in shares in Delivery form . 5- Maximum no. of customer are not aware about the share trading . 6- Company needs more advertisement to aware people about the products of Reliance Money . 7- Concept of fixed coupon based brokerage has good and satisfactory acceptance in market and will become popular in near future like pre paid mobiles.


1- One of the major factors on which the company should really put there efforts is in improvement of the services . 2- The company should try to enhance its image among the customers by increasing advertisement in print and mass media which will help in making its brand image. 3- The company should take feed back from customer. 4- The company should make provisions frequent visits to the Customer . This would increase communication between Consumer and Company. 5- The company should come with attractive schemes like lucky draws , gifts, discount , etc. 6- Company should bring new feature based product according the need and requirement of economy class segment.


Marketing Management By- Philip Kotler Research Methodology By- C.R Kothari

2.MAGAZINE Business Today Business India Business World

The Economic Times



Name: ______________ Contact No. ___________ Age: ______ 1. Occupation: Government Salaried Business Others (specify) ____ Below 2 2 2 -5 More than 2 above 5

2. What is Your Family‘s Annual Income (Rs. Lakhs): 3. How many dependents you have? None Yes 1 No

4. Do you have a Life Insurance Cover? 5. Do you invest? Yes No

if yes, what is your investment concerns? Building Cash reserves Retirement

Income replacement at death/disability Asset Purchase Funding for children


(If ‘No’ - proceed to Q.13)

6. Rate the following investment factors in your order of importance. Very Important ‘1’ S.NO 1. 2. 3. 4. 5. Important ‘2’ Somewhat Important ‘3’ Less Important ‘4’ RATING 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4

PARAMETERS High Returns Safety Liquidity Tax Free Proceeds Flexibility


7. Your current portfolio consists of? Share Markets Fixed Deposits Government Securities Mutual Funds Bonds

ULIP Others (Please specify) ____________ Attempt (Q.8 – Q. 10) if you invest in ULIP schemes 8. With which company do you have the ULIP scheme? PRUDENTIAL BAJAJ ALLIANZ LIC RELIANCE ICICI

OTHERS _________ Debt Balanced Cash

9. Which type of fund you invest in? Equity

10. How much returns are you getting on your ULIP investments annually (approximately)? Below 10% 10% - 20 % 20%-30% above 30%

Attempt (Q.11 – Q. 12) if you invest in Mutual Funds

11. Which mutual funds are you investing in presently? _______________________

12. How much returns are you getting on your investments annually (approximately)? Below 10% 10% - 20 % 20%-30% above 30%

13. Reliance Money is offering an opportunity to participate in investment schemes generating high returns, would you like to avail it? Yes No



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