A Project Report on

“Sales and Distribution of Financial Product”

From

At
Success Advisory Services Pvt. Ltd., Bokaro
Submitted to
MAEER’s
MIT SCHOOL OF TELECOM AND MANAGEMENT
STUDIES
SUBMITTED BY
MANOJ KUMAR SINGH
ROLL NO.- L20711
BATCH NO.- LM2
IN PARTIAL FULLFILMENT OF POST GRADUATE
PROGRAM(PGP)
PGPLTM
2007-2009

1
Serial No. Topics Page No.

1. Certificate by the Organization 3

2. Certificate by the Faculty guide 4
3. Preface 5
4. Acknowledgement 6
5. Objective of Training 7
6. Executive Summary 8
7. Scope of the Study 9
8. Reliance ADA Group 10
9. Profile Of the Company 11-12
10. Business Overview 13-14
11. Board of Directors 15-16
12. Partners of the Company 17-18
13. Products of the Company 19
14. Reliance Life Insurance 20-26
14.1 Insurance Plans 27-36
15. Reliance Demat Account 37-43
16. Reliance Mutual Fund 44-54
17. Reliance General Insurance 55-59
18. Market Analysis 60-64
19. Recommendation 65
20. Bibliography 66
21. Conclusion 67

2
 Certificate

This is to certify that the Winter project titled “ Sales

and Distribution of Financial Product” is a bonafide and a
sincere work of Mr. Manoj Kumar Singh is original and has
been made under my supervision in partial fulfillment of the
requirement for the award of PG Program in for the period from
21st jul 08, to 5th sep 08. I am pleased to say that his performance
during this Period was Excellent.

S. N. Singh
Company Guide

3
Dr. Prakash Barjatya
Director of MITSOL, Pune.

CERTIFICATE BY THE FACULTY GUIDE

This is to certify that Mr. Manoj Kumar Singh, Student of PGP(LTM) IV

Trimester has completed the summer training on the topic Sales and Distribution of

financial Products in a reputed company Reliance Money, a Part of the Reliance

Capital at BOKARO. The summer training project report is based on the work done by

the candidate himself and fulfils the requirement of the project necessary for partial

fulfillment of the PGP degree. The work carried out by the candidate on the above

mentioned topic is up to the mark as supported by the certificate issued by the

Organization where the candidate has undergone training for completion of the project

work.

To the best of my knowledge and belief, the work has not been submitted

anywhere else for award of any degree or diploma.

We wish him success in his life.

4
Private sector is one of the fastest growing sectors in the country. After the Liberalization
the Private industry still holds vast opportunities for young and experienced
professionals. On the life insurance side public sector life insurance Corporation of India
is, of course, the largest player with a history of over 50 years. After Privatization, the
PSU has been making efforts to improve efficiency and customer services. Among the
private life insurance player Reliance life insurance is the key player.
Reliance money - Anil Dhirubhai Ambani Group offers most dynamic web based trading
environment to its customers .The Reliance Money stock trading websites uses special
security features 'Security Token', which makes you online trading experience more
secure without complexity. Reliance ADG provide the vast opportunities to the new
aspirants of the business administration. The financial Sector is full of competition even
if there are a lot of opportunities to the job in Reliance Money and It is the platform to go
on the highest peak in the life of any coming one. Reliance Money is a single window
that provide the multisystem facilities of the financial Products. There are many
companies in the market which are providing the financial product like insurance, demat
account services, mutual funds, general insurance, Portfolio management services(PMS),
wealth management, gold coins, Money changing , Money Transfer, and the others.
Hence Reliance Money provide many financial product on the single window. Reliance
money deals with the product and Investment options are available in...
• Equity (Stock) Trading

• Derivatives Trading Special feature is available first time to track your positions

online, in real time.

• Forex Trading

• Commodity Trading

• IPO's

• Mutual Funds

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 • Insurance

Sometimes words fall short to show gratitude, the same happened with me during this
project. The immense help and support received from Reliance Money Limited
overwhelmed me during the project.
It was a great opportunity for me to work with Reliance money, pioneers in the

field of stock trading, a part of Reliance Capital Ltd. I am extremely grateful to the

entire team of Reliance Money at Bokaro who have shared their expertise and
knowledge with me and without whom the completion of this project would have been
virtually impossible.
My sincere gratitude to Mr. S.N.Singh (Director of Success advisory,

Bokaro) for providing me with an opportunity to work with Reliance Money Limited at
Bokaro as a company project guide who has provided me with the necessary information
and his valuable suggestion and comments on bringing out this report in the best possible
way.
I am highly indebted to Mr. Ritesh Kumar (Center Manager of Reliance

Money, Bokaro) and company project guide, who has provided me the necessary
information and his valuable suggestion and a good support in understanding the basics
of the Reliance Money easily.
I feel great pleasure to cordial thanks Mr. Avinash Dubey (Center

Manager of Reliance Money, Bokaro).

I also very thankful to my friends who help me in completion of the project. I am

thankful to that power that always inspires me to take right step in the journey of success
my life.

6
Frankly speaking, any job or the task, have the specific objective i.e. what is need and
what is the requirement of the particular work. In the same way my objective is also to
learn something from the summer internship program . It means that the training program
in any reputed company give the market knowledge of its subject matter of study.
The right choice of the company in which a student has to do the training is also the part
of the learning and what he/she wants to learn in the summer training.
In the short span since the insurance sector was opened up, many companies have
literally dictated the market’s evolution. Catering to all age and income segments, the
company stated out with the traditional insurance policies that were easy to understand,
the idea was to entice customers used to LIC’s style of functioning.
Reliance money began exploring new areas; it introduced modern products, like Unit-
linked Product where return are linked to the market performance of the underlying
assets.
Reliance Money leads and virtually all parameters; size of agent force, number of policies
sold, total sum, total sum assured, premium income and productivity of agents it has set
exacting standards for its range of products, riders offered, quality of information in
promotional material and even in the insurance awareness events organized.
What has been in favor of Reliance Money is the range of product in each
segment of life insurance-traditional, unit-linked and single premium option, that are for
retirement plan or child plan. With such a comprehensive bouquet, it caters to the
financial goals of a customer. Reliance Money a growing reputed company give the good
platform in selling of the product like insurance, Equity & commodities, derivative,
IPO’s, offshore investment, mutual fund, gold coins etc.
So the objective of study is to see in the basket of product and satisfaction of
customers with the company through research work in Bokaro.

7
This project has been a great learning experience for me, at the same time it gave me
enough scope to implement my analytical ability.
The first part gives an insight about the Demat Account, Life Insurance, General
Insurance and mutual funds and theirs various aspects. It is purely based on whatever I
learned at Reliance Money. One can have a brief knowledge about mutual funds and all
its basics through the project. Other than that the real servings come when one moves
ahead. Some of the most interesting questions regarding these products have been
covered. Some of them are:

• Why has it become one of the largest financial intermediaries?

• How investors do chose between funds and these products?

Most popular stocks among fund managers, most lucrative sectors for fund managers, a
special report on Systematic Investment Plan, does fund performance persists and the
topping of all the servings in the form of portfolio analysis tool and its application.

All the topics have been covered in a very systematic way. The language has been kept
simple so that even a layman could understand.

All the quarries of the customer asked by them had been solved with the support of the
seniors in the organization. The problems of the customer were being recorded for the
purpose of the research and development.

8
The scope of the study refers to the job that to know about the activities of the
organization. The study means that the analysis of the products of the company on which
he/she has to focus.

During the summer training the volunteer need to find out the corporate strategies of the
running company and the mile stone which the company has covered during its journey.
In the summer training, it is necessary for the student that he /she involve with the
experience guys to get the knowledge about the company. That is how the company has
got the success, Or if it is going in the loss, why.

In my training period I have found that the reliance group is the biggest group in Indian
companies. I felt that I can learn the more in the Reliance Life Insurance Limited.
Reliance Life Insurance Limited is the part of the Reliance Capital Limited which is a
growing company in the financial products.

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

9
10
11
 Reliance Capital

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

Reliance money is a part of the reliance Anil Dhirubai Ambani Group and is promoted
by Reliance capital, the fastest growing private sector financial services company in
India, ranked amongst the top 3 private sector financial companies in terms of net worth.
Reliance money is a comprehensive financial solution provider that enables you to carry
out trading and investment activities in a secure, cost-effective and convenient manner.
Through reliance money, you can invest in a wide range of asset classes from Equity,
Equity and commodity Derivatives, Mutual Funds, insurance products, IPO’s to availing
services of Money Transfer & Money changing.
Reliance Money offers the convenience of on-line and offline transactions through a
variety of means, including its Portal, Call & Transact, Transaction Kiosks and at it’s
network of affiliates.

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

“Success is a journey, not a destination.” If we look

for examples to prove this quote then we can find many but there is none like that of
Reliance Money. The company which is today known as the largest financial service
provider of India.

• Success sutras of Reliance Money:

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The success story of the company is driven by 8 success sutras adopted by it namely

trust, integrity, dedication, commitment,

enterprise, hard work and team play, learning
and innovation, empathy and humility. These are the
values that bind success with Reliance Money.

• Vision of Reliance Money

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

• Mission statement:

“Our mission is to be a leading and preferred

service provider to our customers, and we aim
to achieve this leadership position by building
an innovative, enterprising , and technology
driven organization which will set the highest
standards of service and business ethics.”

13
Reliance Capital has interests in asset management and mutual funds, life and general
insurance, private equity and proprietary investments, stock broking, depository services,
distribution of financial products, consumer finance and other activities in financial
services.
Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance is India's
fastest growing life insurance company and among the top 4 private sector insurers.
Reliance General Insurance is India's fastest growing general insurance company and the
top 3 private sector insurers. Reliance Money is the largest brokerage and distributor of
financial products in India with more than 2.5 million customers and the largest
distribution network. Reliance Consumer finance has a loan book of over Rs. 8,000
crores at the end of June 2008.
Reliance Capital has a net worth of Rs.6, 862 crores (US$ 1.6 billion) and total assets of
Rs. 19,940 crores (US$ 4.6 billion) as of June 30, 2008 and over 26,000 employees.
Money has increased its market share among private financial companies to nearly
Convenient & effective – Anytime & anywhere financial transaction capability. Launched
in April 2007. It provides the Flat fees system. It has 2.2 million customers in 1 year of
official launch. It has over 5,000 outlets across 700 towns/cities. Average daily turnover –
in excess of Rs 2,000 crores.
Considering the entire life market, including the Rs. 12,890 crores booked by life
insurance Corporation, Reliance life insurance market share works out to around 6.25%.
The life insurance market continuous to be dominated by LIC which has about 67% share
this only a marginal dip from its 73% share in end-July. These comparisons are only for
first year or new business premium.
The gap between Reliance life insurance and the second-in-line private insurer is vast. In
fact, this scenario has led some analysts to wonder if the company is not a trifle too
aggressive. But others say this has more to do with the companies’ customer-centric

14
focus, its pan-India presence and superior risk management and investment strategies.
Reliance Money is not, however, resting on its laurels.

Company’s customer centric approach will be studied during the training period and the
finding of the research work will definitely focus on the present condition & future
requirement (if any) relating to products of company.

15
Anil Dhirubhai Ambani - Chairman

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D
Ambani, 50, is the chairman of all listed companies of the Reliance ADA Group, namely,
Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural
Resources and Reliance Power. He is also Chairman of the Board of Governors of
Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi
Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing
Director in Reliance Industries Limited (RIL), India's largest private sector enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally
involved in every aspect of the company's management over the next 22 years. He is
credited with having pioneered a number of path-breaking financial innovations in the
Indian capital markets. He spearheaded the country's first forays into the overseas capital
markets with international public offerings of global depositary receipts, convertibles and
bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2
billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

Amitabh Jhunjhunwala - Vice-Chairman

Shri Amitabhabh Jhunjhunwala, 51, is a Fellow Chartered Accountant. He has vast

experience in the areas of financial services and capital markets. Shri Jhunjhunwala was
appointed to the Board on March 7, 2003 and was appointed Vice Chairman on March
20, 2006. He is a Director on the Board of Harmony Art Foundation and Reliance Anil
Dhirubhai Ambani Group Pvt. Ltd.

Rajendra Chitale - Independent Director

Shri Rajendra P. Chitale, 46, an eminent Chartered Accountant, is the Managing Partner
of M/s M. P. Chitale & Associates. He is a Director on boards of the National Securities

16
Clearing Corporation Limited, Asset Reconstruction Company (India) Ltd, Hinduja TMT
Limited, HTMT Global Solutions Ltd, Ambuja Cement Limited, SME Rating Agency of
India Limited, Ishan Real Estate PLC and Reliance General Insurance Company Ltd. He
is also a member of the advisory board of the Insurance and Regulatory Authority of
India (IRDA). He has also served on the boards of Life Insurance Corporation of India,
Unit Trust of India, SBI Capital Markets Ltd., National Stock Exchange of India Ltd. and
Small Industries Development Bank of India.

Shri C. P. Jain

Shri C.P. Jain, 61, is the former Chairman and Managing Director of NTPC Ltd.
(National Thermal Power Corporation). Shri Jain has an illustrious career spanning over
four decades of contribution in the fields of financial management, general management,
strategic management and business leadership. He is a fellow member of the Institute of
Chartered Accountants of India with an advanced diploma in Management and is a law
graduate. Shri C. P. Jain joined the Board of NTPC in 1993 as Director (Finance), was
elevated as Chairman & Managing Director in September 2000 and superannuated in
March 2006. He is Chairman of the Global Studies Committee of World Energy Council
(WEC), world's largest energy NGO with nearly hundred member-nations. He has been
on several important committees of the Government of India, latest being the 'Adhoc
Group of Experts on Empowerment of CPSEs'. He was Chairman of Standing
Conference of Public Enterprises (SCOPE) between April 2003 and March 2005. He is a
Director on the Board of IL & FS Infrastructure Development Corporation and, is also a
member of the Audit Advisory Board of the Comptroller and Audit General of India.

17
18
19
• Reliance Life Insurance

• Demat Account Services

20
 • Reliance Mutual Funds

• Reliance General Insurance

Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group is India's
fastest growing life insurance company and among the top 4 private sector life insurers.
Reliance Life Insurance has a pan India presence and a range of products catering to
individual as well as corporate needs. Reliance Life Insurance has over 700 branches and
1, 80,000 agents. It offers 26 products covering savings, protection & investment
requirements. Reliance Life Insurance will endeavor to attain a leadership position in the
market over the next few years, by further expanding and strengthening its distribution
network and offering a diverse array of products to suit the varied and specific needs of
individual customers.

Basics of Life Insurance

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What is Life Insurance?

An amount of money paid to someone (called beneficiary) when the Life Assured (in
whose name the insurance policy is taken) dies. This amount can be used to pay the
expenses related to Life assureds death or can be invested to generate income that will
replace your salary. Life Insurance is an important tool in any investors portfolio & can
be used for - wealth creation, asset building, provide for contingencies and retirement
planning.

The main reason to buy Life Insurance is to

provide income replacement for your loved ones

Types of Life Insurance Policies

• Most Insurance policies are a combination of Savings & Protection.

• Products are formulated by either increasing or decreasing either one of these

components.

• These combinations can be broadly divided into 4 groups

- ULIPs
- Term Insurance
- Endowment Policies : Whole Life; Unit Linked etc
- Annuities & Pension

22
Life Stage in Life Insurance

23
 Peak earning age
range. High asset
creation & build up
of liabilities. Critical
stage for
dependents Asset base build
Introduction of
up & liabilities
dependents. Start
reduced/ taken
of financial
care of. Need for
planning – balance
retirement
between asset
planning more
creation &
than protection.
protection

No dependents/ Need for

liabilities protection low.
therefore need Greater need for
for insurance is regular income
less flow.

25-30
30-45 years 45 yrs and
Married
Couples with above
couples
18-25 children Matured
with no
(Unmarrie couple Retire
kids
d) d

Endowment / ULIP’s Endowment / ULIP’s +

Term Annuities

At each stage, requirements, responsibilities and Financial

needs differ

Need Analysis in life Stages

24
 AGE STATUS INSURANCE SUGGESTED
NEEDS PRODUCTS

1.Go on a holiday
2.Buy a new Car Short Term
18yrs - 25yrs Unmarried 3.Set up a new house Endowment
4.Set up Interiors
5.Buy jewellery
Product

1.High Debt, high

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

1.Retirement
Planning Profits or Unit
30yrs - 45yrs Matured 2.Wealth transfer or Linked
couple saving vehicles
3.Returns on
Endowment/
investment Deferred annuities
4.Opting for
guaranteed Product

1.Single Premium
1.Protection in case
you live long annuities
60yrs and Post 2.Protection for 2.Long term care
above Retirement spouse in case of
death
products
3.Wealth 3.Whole life
accumulation for products
children

Life Stage Example

25
 T
Endowme erm
nt

Annuitie
s

Hello, I am Philip, sailor.

Have seen the world.
Always on cruise and keep
worrying about family and
the loans. I need financial
Savera has just Protection if I do not return
come to our lives. As from one voyage
Worked for almost
proud parents, We 25 years, now want
need to protect her to live…
live…. I want
as well as create her something that will
own financial make my life Chinta-
standing free after
retirement…
retirement….

Products of Life Insurance

Life Insurance products are usually referred to as ‘plans’ of insurance. These plans have
two basic elements; one is the “Death Cover” providing for the benefits being paid on the

26
death of the insured person within a specified period. The other is the “Survival Benefit”
providing for the benefit being paid on survival of a specified period.
• Plans of insurance that provide only death cover are called “Term Assurance”
Plans.
• Plans of insurance that provide only survival benefits are called “Pure
Endowment” Plans.

Term Life Insurance

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

Whole Life Insurance

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

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

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

Solutions for Individuals - RGI

27
Taking time out from your daily schedule to plan your future is a necessary task. You
could do with some help, but who can help you? Reliance Life Insurance is here with
Solutions for Individuals, a series of plans that will help you make wise investments,
protect your family, secure your child’s future and even chalk out a plan for your
retirement.

28
 • Protection Plans
Protect your family even when you’re not around by investing in Reliance Protection
Plans. Choose a limited period plan or a lifetime protection plan depending on your
needs. The latest Protection Plans are as below…
1. Reliance Term plan
2. Reliance Simple Term plan
3. Reliance Special Term plan
4. Reliance Credit Guardian plan
5. Reliance Special Credit Guardian plan
6. Reliance Endowment plan
7. Reliance Special Endowment plan
8. Reliance Connect 2 Life plan
9. Reliance Whole Life plan
10. Reliance Wealth + Health plan
11. Reliance Cash Flow plan

• Savings & Investment Plans

Reliance Savings & Investment Plans help you to set aside some money to achieve
specific goals in life, which means that you can enjoy life and provide for your family’s
daily needs. The savings and investment Plans are as below…
1. Reliance Total Investment Plan Series I - Insurance
2. Reliance Wealth + Health plan
3. Reliance Automatic Investment plan
4. Reliance Money Guarantee plan
5. Reliance Cash Flow plan
6. Reliance Market Return plan
7. Reliance Endowment plan
8. Reliance Special Endowment plan
9. Reliance Whole Life plan
10. Reliance Golden Years Plan

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 11. Reliance Golden Years Plan Value
12. Reliance Golden Years Plan Plus
13. Reliance Connect 2 Life plan

• Retirement Plans
Invest today in Reliance Retirement Plans and save money to enjoy life even after
retirement. You will never have to depend on another person or make any compromises to
maintain your current lifestyle. The latest Retirement Plans are as below…
1. Reliance Total Investment Plan Series II – Pension
2. Reliance Golden Years Plan
3. Reliance Golden Years Plan Value
4. Reliance Golden Years Plan Plus
5. Reliance Wealth + Health plan
6. Reliance Automatic Investment Plan
7. Reliance Money Guarantee Plan

• Child Plans
Save systematically and secure your child’s future needs by investing in Reliance Child
Plans. You can always be there for your child when he or she needs you. The Childs plans
are as below…
1. Reliance Child plan
2. Reliance Secure Child plan
3. Reliance Wealth + Health plan

Market Return Plan

Under This plan the investment risk in the investment portfolio is borne by the
policyholder.

30
key features
• Twin benefit of market linked return and insurance protection
• A unit linked plan, different from traditional life insurance products with
maximum maturity age of 80 years.
• Option to create your own portfolio depending on your risk appetite.
• Choose from four different investment funds
• Flexibility to switch between funds
• Option to pay regular as well as single premium & top- ups
• Option to package your policy with accidental rider
• Flexibility to increase the sum assured
• Liquidity through partial withdrawals

How does this plan work

The premium paid by the client net of premium allocation charges is invested in
fund/funds of your choice and units are allocated depending on the price of units for
the fund/funds. The fund value is the total value of units that you hold in the
fund/funds. The mortality charges and policy administration charges are ducted
through cancellation of units whereas the fund management charge is priced in the
unit value.
Benefits
Life cover Assured: in case of unfortunate loss of life, the beneficiary will get sum
assured or fund value, whichever is higher. The client can choose the basic sum
assured within the minimum and maximum levels mentioned below.

Minimum sum Assured:

• Regular premium: annualized premium for 5 years or annualized premium for
half the policy term, whichever is higher.
• Single premium: 125% of the single premium.

Maximum sum Assured

No limit (50000 for age up to 12 years)

31
Maturity Benefits
On survival to maturity the fund value on maturity will be paid out.
Rider Benefits
The Client can add the Accidental Death & Total and Permanent Disablement Benefit
Rider (available only with the regular premium option).
This benefit doubles the life coverage in case of accidental death or accidental total and
permanent disablement at a very nominal additional cost. The maximum cover is Rs. 50,
00,000 per life.
In case of accidental death of the life assured during the policy term, the accident benefit
sum assured will be paid immediately in a lump sum.
In case of accidental total and permanent disablement, 1/10th of the accident benefit sum
assured will be paid at the end of each year for ten years. If the total and permanent
disablement has commenced, the accidental death benefit cover ceases.
In case of maturity or on death of the life assured before payment of all installments of
accidental total and permanent disablement benefits, the remaining unpaid installments of
any will be paid in one lump sum along with death or maturity benefit.
Accidental total and permanent disablement means disability caused by bodily injury,
which causes permanent inability to perform any occupation or to engage in any activities
for remuneration or profits. This disability should last for at least 6 months before being
eligible for accidental total and permanent disablement benefits.
Accidental total and permanent disablement includes loss of both arms and both legs or
one arm and one leg or of both eyes. Loss of arms or legs means dismemberment by
amputation of the entire hand or foot. Loss of eyes means entire and irrecoverable loss of
sight.

What are the different fund options.

32
We understand the value of your hard earned money and in our Endeavour to help you
grow your wealth, we offer you 4 different tailor-made investment funds. You have the
option to allocate your premium in these funds as you wish.

They are:
1. Capital Secure Fund:
The investment objective of this fund is to maintain the value of all contributions (net of
charges) and all interest additions. This fund offers steady return for little risk. The risk
profile of this fund is low. Investments would be 100% in bank deposits, government
bonds and debt instruments that offer financial security.
Further, allocation in Capital Secure Fund for a policy is subject to a maximum limit of
40% at any time.

2. Balanced Fund:
The investment objective of this fund is to provide you with investment returns, which
exceed the rate of inflation in the long term while maintaining a low probability of
negative investment returns. Here, a major portion of your funds are invested in Fixed
Securities while a small percentage is invested in the equity market, which is exposed to
market movements. The risk profile of this fund is low to medium.
Investments would be at least 80% in fixed interest securities and maximum 20% in
equities.

3. Growth Fund:
The investment objective of this fund is to provide you with investment returns, which
exceed the rate of inflation in the long term while maintaining a moderate probability of
negative investment returns. A greater portion of your funds are invested in fixed
securities while a small percentage is invested in the equity market, which exposed to
market movements. The risk profile of this fund is medium to high.
Investment would be at least 60% in fixed interest securities and maximum 40% in
equities.

33
 4. Equity Fund:
The investment objective of this fund is to provide policyholders with high exposure to
equities and the possibility of investment returns, which generate a high real rate of return
in the long term while recognizing that there is a significant probability of negative
investment returns in the short term. This fund offers a totally equity based investment
option. Your returns depend entirely upon the performance of the equity market. The risk
profile of this fund is high. The higher risk of this portfolio means that expected returns
would also be higher.
Investment would not exceed 30% in bank deposits and may be up to 100% in equities.

Value of Units:
The market value of assets plus/less expenses incurred
In the purchase/sale of assets plus current assets plus
Any accrued income net of fund management charges
Less current liabilities less provision
Unit Value =
Total number of units on issue (before any new units
are allocated/redeemed.)

Who can Buy the product

34
Minimum age at entry 30 days
Maximum age at entry 65 years
Maximum age at maturity 80 years

What is the policy term

Minimum policy term 5 years
Maximum policy term 40 years

Flexible premium payment modes:

Choose from five premium payment modes.
a) Annual – minimum premium is Rs. 10,000.
b) Half – yearly – minimum premium is Rs. 5,000.
c) Quarterly – minimum premium is Rs. 2,500.
d) Monthly – minimum premium is Rs. 1,000.
e) Single premium – minimum premium is Rs. 25,000.

Charges under the plan:

1. Premium allocation charge
For regular premium policies:
Term of the policy as below
Years 5-9 10 - 14 15+
First year 10% 15% 20%
Thereafter 5% 5% 5%

(The premium allocation charge for single premium & top – ups is 2%.)

2. Policy Administration charges:

Rs. 40 will be deducted from your unit account each month.

35
 3. Fund Management Charges:
(The fund management charges will be deducted on a daily basis.)
Unit Linked Funds Annual Rate
Capital Secure 1.50%
Balanced Fund 1.50%
Growth Fund 1.75%
Equity Fund 1.75%

Revision of charges:
The fund management charges are subject to revision at any time, but hey will not exceed
2% p.a. for the capital secure fund and 2.5% p.a. for the other funds.
Any changes made to the charges under this policy will be subject to IRDA approval.

4. Partial Withdrawal Charges:

Rs. 100 per withdrawal will be deducted from your unit account.

5. Switching Charge:
1% of the amount switched, with a maximum of Rs. 1,000/- per switch.

6. Mortality Charges:
The Mortality charges, based on your attained age, are determined using 1/12th of the
charges are different.

7. Surrender Charge:
This charge is levied on the unit fund at the time of surrender of the policy as under:

36
 Number of years premiums paid Surrender charge as percentage of
fund value
Less than 1 100%
1 50%
2 20%
3 and more NIL

8. Service Tax Charge

This charge will be levied on mortality, accident & disability benefit charges. The level of
this charge will be as per the rate of service tax on risk premium levied by the
government from time to time the correct rate of service tax is 12.36% this charge shall
be collected along with charges.

How safe is your investment

• The investments made in the unit funds are subject to investment risks associated
with capital markets and the NAVs of the units may go up or down based on the
performance of the fund and the factors influencing the capital market, and the
insured is responsible for his/her decisions.
• The unit price is a reflection of the financial and equity/debt market conditions
and can increase or decrease at any time due to this.
• Benefits payable under the policy will be made according o the tax laws and other
regulations in force at that time.
• There are no guarantees for any fund of any kind under this policy. The benefit
payable on maturity will be equal to the value of your units.
• The name in the funds in n way indicates the returns derived from them.
• Please note that Reliance life Insurance company limited is only the name of the
insurance company and Reliance market return plan is only the name of the unit
linked life insurance policy and does not in anyway indicate the quality of the
policy or its future prospects or returns

37
Free Look Period.

In case the policyholder disagrees with any of the terms and conditions of the policy, he
may return the policy to the company within 15 days of its receipt for cancellation,
stating his/her objections in which case the company will refund an amount equal to the
non allocated premium plus the charges levied by cancellation of units plus fund value as
on the date of receipt of the request in writing for cancellation, less the proportionate
premium for the period the company has been on risk and the expenses incurred by the
company medical examination and stamp duty charges. If the risk acceptance date falls
within cooling off period, then on cancellation RLIC shall pay fund value less of charges.

Overview of Demat Account.

38
In India, a Demat account, the abbreviation for dematerialized account, is a type of
banking account which dematerializes paper-based physical stock shares. The
dematerialized account is used to avoid holding physical shares: the shares are bought
and sold through a stock broker.

This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a demat account for share trading above 500 shares. As of April 2006, it
became mandatory that any person holding a demat account should possess a Permanent
Account Number (PAN), and the deadline for submission of PAN details to the
depository lapsed on January 2007.

Procedure

1. Fill demat request form (DRF) (obtained from a depository participant or DP with
whom your depository account is opened).
2. Deface the share certificate(s) you want to dematerialize by writing across Surrendered
for dematerialization.
3. Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer /
their R&T Agent.
4. After dematerialization, your depository account with your DP would be credited with
the dematerialized securities.

Reliance Money Demat Account Services

Reliance Money – Transacting and investing simplified.

Get ready to change the way you transact and invest in financial products and services.

39
Whether you wish to transact in equity, equity & commodity derivatives, IPO’s offshore
investments or prefer to invest in mutual funds, life & general insurance products or avail
money transfer and money changing services, you can do it all through reliance money.
Simply open a reliance money account and enjoy the convenience of handling all your
key financial transactions through this one window.

Benefits of having a reliance money account

• 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 750/- and transact through reliance money. This fee is
valid for two months or a specified transaction value
See the table below for details.

• Its offers single – window access

Through reliance money’s associates, you can transact in equity, equity and commodities
derivatives, offshore investments mutual funds, IPO’s life insurance, general insurance,
money transfer, money changing and credit cards, amongst others.

• Its convenient
You can access reliance money’s services through
• The internet
• Transaction kiosks

40
 • The phone (call & transact)
• 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.

• Its Safe
Your account is safeguarded with a unique security number that changes every 32
seconds. This number works as a dynamics password to keep your account extra safe.

• Its provides you a demat account

You get your own demat account with reliance capital at an annual fee of just Rs. 50/-.

• Its provides you a 3-in-1 facility.

You can access your banking, trading and demat account through a single window and
transfer funds across accounts seamlessly.

• It provide you value- added services

At www.reliancemoney.com, you get
• Reliable research, including views of external experts with an enviable track
record
• Live news updates from Reuters and Dow Jones
• CEO’s / expert views on the economy and financial markets

41
 • Tools that help you plan your investments, tax, retirement, etc. in the personal
finance section
• Risk Analyzer for analysis of your risk profile
• Asset allocators to build an appropriate investment portfolio
• Innovative use of technology for facilitating convenient trading/investments –

kiosks (similar to ATM’s)

Reliance Money Provide the kiosks (similar to ATM’s) Facilities, to their customer
through which the customers can trade on available kiosks at the particular Branch of
Reliance Money. The company is going to open these kiosks in the market as the ATM’s
of the Banks.
Reliance Money provides 3 different trading platforms for equity trading:

Insta Trade

42
Fast Trade

Easy trade

The benefits
• 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 of securities is done by DP eliminating correspondence with
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.

Required Documents
The extent of documentation required to open a demat account may vary according to
your relationship with the institution. If you plan to open a demat account with a bank, a
savings, current and, or other account for which the holder have been issued a check
book, such holder has an edge over the non-account holder. In fact, banks usually offer
additional incentives to customers who open a demat account with them. Along with the

43
application form, your photographs (with co-applicants) and proof of
identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client
agreement to be executed on non-judicial stamp paper. Here is a broad list:

• A canceled check, preferably MICR

• Proof of Identification
• Proof of Address
• Proof of Pan card (mandatory)
• Recent photographs, one and, or more

For proof of identification and, or address self-attested facsimile copies of PAN card,
Voter’s ID, Passport, Ration card, Driver’s license, Photo credit card, Employee ID card,
Bank attestation, latest IT returns and, or latest Electricity/Landline phone bill are
sufficient. While they only ask for photocopies of the documents, they will need the
originals for verification.

Points To Remember
1. Only securities admitted by NSDL can be dematerialized. The list is available
with your DP.
2. Only securities registered in the name of the account holder can be
dematerialized.
3. Dematerialization is normally completed within 15 days after the share
certificates have reached the issuer/ their R&T Agent. Thus it may take you a
month from the date you hand over shares, to receive demat credit.
4. Dematerialization would be done only when the issuer / their R&T Agent is
satisfied of genuineness of securities & ownership status.
5. All the joint holders should sign the DRF.
6. The pattern of holding in the DRF should match the pattern of holding on the
share certificate & the pattern in which account is opened.
7. Demat requests with name(s) not matching exactly with the name(s) appearing on
the certificates merely on account of initials not being spelt out fully or put after

44
 or prior to the surname, would be processed, provided the signature(s) of the
client(s) on the DRF tallies with the specimen signature(s) available with the
issuer/ their R & T agent.
8. If the signature in the DRF does not match with the signature available with the
issuer/ their R & T agent, the issuer/ their R & T agent may at the time of demat
confirmation, ask for additional documentation (like bank attestation/ notarisation,
etc.) to prove that the certificate belongs to the person who forwarded the DRF.
9. In case there is any problem in processing the DRF, contact your DP and if he
cannot resolve the problem you may contact NSDL.

The Concept of Mutual Fund

A mutual fund is a common pool of money into which investors place their contributions
that are to be invested in accordance with a stated objective. The ownership of the fund is
thus ‘joint’ and ‘mutual’; the fund belongs to all investors

45
Reliance Mutual Fund

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

Types of Mutual Funds on the Basis of Risk Vs Returns

46
 Sector Funds

Diversified Equity
Funds

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

Risk

Frequently used term in Mutual Funds

• Net Asset Value (NAV)

Net Asset Value is the market value of the assets of the scheme minus its liabilities. The
per unit NAV is the net asset value of the scheme divided by the number of units
outstanding on the Valuation Date.

• Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It may include
a sales load.

• Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may include a
back-end load. This is also called Bid Price

47
 • Redemption Price
Is the price at which open-ended schemes repurchase their units and close-ended schemes
redeem their units on maturity? Such prices are NAV related.

• Sales Load
Is a charge collected by a scheme when it sells the units. Also called, ‘Front-end’ load.
Schemes that do not charge a load are called ‘No Load’ schemes

• Repurchase or ‘Back-end’ Load

Is a charge collected by a scheme when it buys back the units from the unit holders.

Types of Reliance Mutual Funds

1. Reliance Growth Fund
2. Reliance Vision Fund
3. Reliance Banking Fund
4. Reliance Diversified Power Sector Fund
5. Reliance Pharma Fund
6. Reliance Media & Entertainment Fund
7. Reliance NRI Equity Fund
8. Reliance Equity opportunities Fund
9. Reliance Index Fund
10. Reliance Tax Saver (ELSS) Fund
11. Reliance Equity Fund
12. Reliance Long Term Equity Fund
13. Reliance Regular Saving Fund

The key term in mutual funds

48
Dividend Policy: Dividend will be distributed from the available distributable surplus
after the deduction of the divided distribution surplus after the deduction of the dividend
distribution tax and the applicable surcharge, if any. The mutual fund is not guaranteeing
or assuring any dividend. Pease read the offer document for details. Further payment of
all the dividends shall be in compliance with SEBI circular No. SEBI/IMD/CIR No.
1/64057/06 dated 4/4/06.
Applicable NAV : Sale of units by reliance mutual fund: in respect of valid
applications received up to 3 p.m. by the mutual fund alongwith a local cheque or a
demand draft payable at par at the place where the application is
received, the closing NAV of the day on which application is received shall be applicable.
Repurchase including Switch-out: in respect of valid applications received upto 3
pm by the mutual fund, same day’s closing NAV shall be applicable. In respect of valid
applications received after 3 p.m. by the mutual fund, the closing NAV of the next
business day shall be applicable.
Daily net Asset Value(NAV) publication: the NAV will be declared on all
working days and will be published in 2 newspaper. NAV can also be viewed on
www.reliancemutualfund.com and www.amfiindia.com .

Tax Benefits to the mutual fund: Reliance Mutual Fund is a Mutual fund
registered with the securities & exchange board of India and hence the entire income of
the mutual fund will be exempt from income tax in accordance with the provisions of
section 10(23D) of the income tax act, 1961. The mutual fund will receive all income
without any deduction of tax at source under the provisions of section 196(iv) of the act.
An exemption has been granted under the finance (No.2) act, 2004 to open ended equity
oriented mutual funds from paying distribution tax on income distributed without any
time limit, effective from 1 April 2004.

Securities transaction Tax:

Name of Transaction Payable by Rate of Tax
Purchase and sale of equity Both purchaser as well as 0.125%
shares or units of equity seller
oriented mutual funds on a

49
recognized stock exchange
on delivery basis
Sale on stock exchange of Seller 0.025%
equity shares or units of
equity oriented mutual
funds on non- delivery basis
sale of derivatives Seller 0.017%
reorganized stock exchange
Sale of units of equity Seller 0.25%
oriented mutual funds to the
mutual fund
There are two types of investment in Mutual Funds.
• Lump Sum
• Systematic Investment Plan(SIP)
.

• Lump sum: In Lump sum the investment is only one times that
is of Rs. 5,000. and if the investment is monthly then the investment will be 6,000/-.

• Systematic Investment Plan(SIP) :

We have already mentioned about SIPs in brief in the previous pages but now going into
details, we will see how the power of compounding could benefit us. In such case, every
small amounts invested regularly can grow substantially. SIP gives a clear picture of how
an early and regular investment can help the investor in wealth creation. Due to its
unlimited advantages SIP could be redefined as “a methodology of fund investing
regularly to benefit regularly from the stock market volatility. In the later sections we will
see how returns generated from some of the SIPs have outperformed their benchmark.
But before moving on to that lets have a look at some of the top performing SIPs and
their return for 1 year:

Amoun NAV Total

Scheme t NAV Date Amount
Reliance diversified 30/5/20
power sector retail 1000 62.74 08 14524.07
Reliance regular
22.20 30/5/20 13584.94
savings equity 1000 8 08 4

50
principal global
30/5/20 14247.72
opportunities fund 1000 18.86 08 8
DWS investment
30/5/20 13791.15
opportunities fund 1000 35.31 08 7
30/5/20 13769.15
BOB growth fund 1000 42.14 08 2

In the above chart, we can see how if we start investing Rs.1000 per month then what
return we’ll get for the total investment of Rs. 12000. There is reliance diversified power
sector retail giving the maximum returns of Rs. 2524.07 per year which comes to 21%
roughly. Next we can see if anybody would have undertaken the SIP in Principal would
have got returns of app. 18%. We can see reliance regular savings equity, DWS
investment opportunities and BOB growth fund giving returns of 13.20%, 14.92%, and
14.74% respectively which is greater than any other monthly investment options. Thus
we can easily make out how SIP is beneficial for us. Its hassle free, it forces the investors
to save and get them into the habit of saving. Also paying a small amount of Rs. 1000 is
easy and convenient for them, thus putting no pressure on their pockets.
Now we will analyze some of the equity fund SIP s of Birla Sunlife with BSE 200 and
bank fixed deposits In a tabular format as well as graphical.

Exposure of Mutual Funds Companies in India

The concept of mutual funds in India dates back to the year 1963. The era between 1963
and 1987 marked the existence of only one mutual fund company in India with Rs. 67bn
assets under management (AUM), by the end of its monopoly era, the Unit Trust of India
(UTI). By the end of the 80s decade, few other mutual fund companies in India took their
position in mutual fund market.
The new entries of mutual fund companies in India were SBI Mutual Fund, Canbank
Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of
India Mutual Fund.
The succeeding decade showed a new horizon in Indian mutual fund industry. By the end
of 1993, the total AUM of the industry was Rs. 470.04 bn. The private sector funds

51
started penetrating the fund families. In the same year the first Mutual Fund Regulations
came into existence with re-registering all mutual funds except UTI. The regulations were
further given a revised shape in 1996.
Kothari Pioneer was the first private sector mutual fund company in India which has now
merged with Franklin Templeton. Just after ten years with private sector players
penetration, the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund
companies in India in which some are as below.

• ABN AMRO Mutual Funds

• Birla Sun life mutual Funds
• Bank of Baroda Mutual Fund
• HDFC Mutual Fund
• HSBC Mutual Fund
• ING Vysya Mutual Fund
• Prudential ICICI Mutual Fund
• Sahara Mutual Fund
• State Bank of India Mutual Fund
• Tata Mutual Fund (TMF)
• Kotak Mahindra Asset Management Company (KMAMC)
• UTI Asset Management Company Private Limited
• Reliance Mutual Fund (RMF)
• Standard Chartered Mutual Fund
• Escorts Mutual Fund
• Alliance Capital Mutual Fund
• Benchmark Mutual Fund
• Canbank Mutual Fund
• Chola Mutual Fund
• LIC Mutual Fund
• GIC Mutual Fund

52
Working of a Mutual Fund

Terms and conditions

• This facility offered only to the investors having bank accounts in selected cities
which are specific in the form of the SIP.
• Submit the following document at least 21 working days before the first SIP date
for ECS (Electronic clearing Service).
• The first SIP cheque should be issued from the same bank account which is to be
debited under ECS for subsequent installments.
• The bank account provided for ECS (Debit) should participate in local MICR
clearing.
• SIP auto debit facility is available only on specific dates of the month i.e. 2nd or
10th or 18th or 28th.
• The investor agrees to abide by the terms and conditions of ECS facility of
Reserve bank of India.
• An investor can opt for monthly or quarterly frequency.
• Only one SIP per month or per quarter is permitted per folio/account.

53
 • Minimum investment amount – monthly SIP option – 60 installments of Rs. 100/-
each or 12 installment or Rs. 500/- each or 6 installments of Rs. 1000/- each and
in multiples of Re.1/- thereafter.
• The gap between the 1st cheque/ installment & the 2nd cheque / installment should
be at least 21working days. However subsequent cheques should have a gap of at
least a month or a quarter depending upon the frequency chosen.

Advantages of Mutual Funds

• Diversification: The best mutual funds design their portfolios so individual

investments will react differently to the same economic conditions. For example,
economic conditions like a rise in interest rates may cause certain securities in a
diversified portfolio to decrease in value. Other securities in the portfolio will
respond to the same economic conditions by increasing in value. When a portfolio
is balanced in this way, the value of the overall portfolio should gradually increase
over time, even if some securities lose value.

• Professional Management: Most mutual funds pay topflight professionals to

manage their investments. These managers decide what securities the fund will
buy and sell.

• Regulatory oversight: Mutual funds are subject to many government regulations

that protect investors from fraud.

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

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

• Low cost: Mutual fund expenses are often no more than 1.5 percent of your
investment. Expenses for Index Funds are less than that, because index funds are

54
 not actively managed. Instead, they automatically buy stock in companies that are
listed on a specific index

• Transparency

• Flexibility

• Choice of schemes

• Tax benefits

• Well regulated

Drawbacks of Mutual Funds

Mutual funds have their drawbacks and may not be for everyone:

• No Guarantees: No investment is risk free. If the entire stock market declines in

value, the value of mutual fund shares will go down as well, no matter how
balanced the portfolio. Investors encounter fewer risks when they invest in mutual
funds than when they buy and sell stocks on their own. However, anyone who
invests through a mutual fund runs the risk of losing money.

• Fees and commissions: All funds charge administrative fees to cover their day-
to-day expenses. Some funds also charge sales commissions or "loads" to
compensate brokers, financial consultants, or financial planners. Even if you don't
use a broker or other financial adviser, you will pay a sales commission if you buy
shares in a Load Fund.

• Taxes: During a typical year, most actively managed mutual funds sell anywhere
from 20 to 70 percent of the securities in their portfolios. If your fund makes a
profit on its sales, you will pay taxes on the income you receive, even if you
reinvest the money you made.

• Management risk: When you invest in a mutual fund, you depend on the fund's
manager to make the right decisions regarding the fund's portfolio. If the manager

55
does not perform as well as you had hoped, you might not make as much money
on your investment as you expected. Of course, if you invest in Index Funds, you
forego management risk, because these funds do not employ managers

56
Reliance General Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group and a
Subsidiary of Reliance Capital, is one of the first non-life companies to get the license
from the IRDA. Reliance General Insurance is India's fastest growing general insurance
company and the top 3 private sector insurers.
Reliance General Insurance has 200 branches across 171 cities and over 20,000
intermediaries. Reliance General Insurance offers an exhaustive range of insurance
products that covers most risks including Auto, Health, Property, Marine, Casualty and
Liability. Insurance Indemnifies Assets & Income. Every Asset has a value and generates
Income to its Owner. There is a normally expected Life-time for the Asset during which
time it is expected to perform. If the Asset gets lost earlier, being destroyed or made
Non-functional through an Accident or other unfortunate event the Owner is Prejudiced.
Insurance helps to reduce CONSEQUENCES of such Adverse Circumstances which are
called Risks
• Insurance is the SCIENCE OF SPREADING OF THE RISK. It is the system of
spreading the losses of an Individual over a group of Individuals
• Insurance is a Method of sharing of financial losses of a FEW from a COMMON
FUND formed out of Contribution of the MANY who are equally exposed to the
same loss
• What is UNCERTAIN for an Individual becomes a CERTAINTY for a Group.
This is the basis of All Insurance Operations. Thus INSURANCE CONVERTS
UNCERTAINTY TO CERTAINTY

RGICL PRODUCTS
HEALTH
• Individual Mediclaim Insurance Policy
• Group Mediclaim Insurance Policy
• Oversees Travel Care Insurance Policy

57
 • Reliance Health Wise Policy (inclusive of PED & Critical Illness) – NEW - a
specialized retail product

PERSONAL ACCIDENT
• Personal Accident Insurance (Individuals) Policy
• Group Personal Accident Insurance

FIRE
• Standard Fire and Special Perils Policy
• Industrial All Risks Insurance Policy
• Consequential Loss (Fire) Insurance Policy

ENGINEERING
• Erection All Risks/Storage-cum-Erection Insurance Policy
• Contractor’s All Risks Insurance Policy
• Contractor’s Plant and Machinery Policy
• Machinery Breakdown Insurance Policy
• Machinery Loss of Profits Insurance Policy
• Boiler & Pressure Plant Insurance Policy
• Electronic Equipment Insurance Policy

MARINE
• Marine Cargo Insurance Policy
• NEW - Marine Turnover based Policy
• NEW - Multi Transit Policy

58
MOTOR
• Private Car Comprehensive Insurance Policy

LIABILITY
• Directors and Officers Liability Insurance Policy
• Public Liability (Act) Insurance Policy
• Public Liability Insurance Policy
• Product Liability Insurance Policy
• Professional Indemnity Insurance Policy

• Workmen’s Compensation Insurance Policy

PACKAGED POLICIES FOR CORPORATES

• Industry Care Insurance Policy
• Commercial Care Insurance Policy
• Office Package Insurance Policy
• Fidelity Guarantee Insurance Policy
• Burglary and Housebreaking Policy
• Money Insurance Policy
• Householder’s Package Insurance Policy
• Shopkeeper’s Package Insurance Policy

Reliance Shopkeeper’s package Policy

Key Advantage
• Comprehensive coverage against various perils spread across different sections of
the policy.

59
 • The policy offers the flexibility to customize the policy by selecting appropriate
covers.
• The coverage is available at reasonably priced premiums.
• Insured has the option of selecting coverage either on the basis of market value or
the reinstatement value.
• Discounts ranging from 5% to 20% for customers opting for four or more
sections, for favorable claims experience and on renewal of the policy.

Scope of the cover

Coverage under this policy is spread across 11 optional sections, enabling you to choose
from them and customize the policy
Section 1A. – Fire and allied perils for building
Section 2B. – Fire and allied perils for contents
The physical structure of your shop (under section 1A) and the contents therein (under
section 1B) can be covered against fire and allied perils. These comprise-
• Fire
• Lightning
• Explosion / implosion
• Aircraft Damage
• Riot, Strike and Malicious Damage
• Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, and Inundation
• Impact Damage
• Subsidence and landslide including Rockslide demolition, construction, structural
alterations or repair of any property or ground works or excavations
• Bursting and / or overflowing of water tanks, apparatus and pipes.

• Missile testing operations

• Leakage from automatic sprinkler installations
• Bush fire
• Terrorism cover (optional)

60
Policy exclusions
At reliance general insurance, we would like our policy to be as transparent as possible.
To ensure that you do not face any unpleasant surprises when you make a claim, we
would like you to know some of the major exclusions under the policy.
• Loss or damage due to war and nuclear perils
• Damage to property due to pollution and contamination
• Loss or damage due to wear and tear, gradual deterioration or slowly developing
flaws
• Consequential loss of any kind
• Willful act or gross negligence on the part of the insured

61
Markets

In tune with the global stock markets that began to recover from the second half of 2003;
Indian stock markets too witnessed rapid growth. India’s two leading indices, the most
popular BSE Sensex, and the one most used by the markets the National Stock
Exchanges’ S&P CNX Nifty rose to record levels. Both primary and secondary market
activity experienced sharp surge. Much progress was made in further strengthening and
streamlining risk management, market regulation and supervision. A few aspects of the
major developments in the India’s stock markets are described below. And the insurance
sector is also play an important role in the growth of the financial market.

Market Structure

Indian securities market is fairly large as compared to several other emerging markets.
There are 22 stock exchanges in the country, though the entire liquidity is shared
between the countries’s two national level exchanges namely, the National Stock
Exchange of India and the Bombay Stock Exchange Ltd. The regional stock exchanges
are in pursuit of business models that make them viable and vibrant. Meanwhile, these
exchanges have become members of the national level exchanges through formation of
subsidiaries whose business is showing continuous growth and progress.

The number of brokers in various stock exchanges rose from 6,711 in 1994-95 to 9,335
in FY06. The number of brokers in all the exchanges together peaked to 10,213 in the
year FY01 but gradually declined thereafter when the regional stock exchanges began to
lose business in the light of wide ranging market structure reforms introduced since then.

62
In FY01, when the markets were in upswing, several regional stock exchanges were
generating business owing to the availability of deferral products, such Badla and
different settlement calendars prevailing at that time in these exchanges. For instance in
FY01, the Delhi Stock Exchange registered cash market turnover of Rs 838.71 bn; Uttar
Pradesh Stock Exchange, Rs 247.47 bn, Ludhiana Stock Exchange Rs 97.32 bn, Pune
Stock Exchange Rs 61.71 bn as against Rs 13,395.11 bn of the turnover at the National
Stock Exchange and Rs 10,000.32 bn turnover at the Bombay Stock Exchange. With the
abolition of the deferral products and introduction of uniform T+2 settlement cycle, the
liquidity in these exchanges flowed to the national level system consisting of NSE and
BSE.

Major Player in the Insurance Sector

There are many reputed companies in the market which provide the Insurance for living
being and non living beings.
The companies in life Insurance are as follows.

Life Insurer in Public Sector

• Life Insurance Corporation of India

Life Insurer in Private Sector

• Reliance life Insurance Company Limited
• ICICI Prudential Life Insurance
• Bajaj Allianz Life Insurance
• Tata AIG Life Insurance corporation Limited
• HDFC Standard Life Insurance
• Birla Sun Life Insurance
• SBI Life Insurance
• Kotak Mahindra old Mutual Life Insurance
• Aviva Life Insurance
• MetLife India Life Insurance

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 • ING Vysya Life Insurance
• Max New York Life Insurance
• Shriram Life Insurance
• Bharti AXA Life Insurance Co. Limited
• IDBI Forties Life Insurance Co. Limited
• Argon Religare Life Insurance Co. Limited

Major Broking house

During the analysis of the market it has been found that there are a lot of the brokeing
house in the market which are providing the online trading facility to the individuals or
the group of the individuals.
• 5paisa.com
You can now buy and sell shares on 5paisa.com with speeds comparable and at times
better than NSE's NEAT Terminal. This speed and reliability comes only with
perseverance of pioneer backed by huge investment in technology! You can now buy and
sell shares on 5paisa.com with speeds comparable and at times better than NSE's NEAT
Terminal. This speed and reliability comes only with perseverance of pioneer backed by
huge investment in technology.
• Advani Share Brokers
Advani Share Broker, a reputed Bombay based on investment house, operates from
India's financial hub, Dalal Street, since sixty years. It deals in equities, debt and
derivatives on the Bombay Stock Exchange and the National Stock Exchange of India.
• AGROY Group of Companies
Agroy group of companies is a well established name in the field of capital markets and
financial services. AGROY Finance & Investment Ltd. (AFIL) is the group's flagship
company engaged in capital markets as a premier financial and stock broking house. The
company was formed in July 1992. Since then it has enjoyed patronage of a large number
of valued customers and business partners.
• Anand Rathi Securities Limited

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Anand Rathi Securities Limited provides financial and advisory services including wealth
management, investment banking, corporate advisory, brokerage & distribution of
equities, commodities, mutual funds and insurance - all of which are supported by
powerful research teams.
• India bulls
India bulls is India's leading retail financial services company with 70 locations spread
across 62 cities. While our size and strong balance sheet allow us to provide you with
varied products and services at very attractive prices, our over 450 Client Relationship
Managers are dedicated to serving your unique needs.
• Religare Securities Ltd.
Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through Religare
Securities Limited, Religare Finvest Limited, Religare Commodities Limited and
Religare Insurance Advisory Services Limited provides integrated financial solutions to
its corporate, retail and wealth management clients. Provides various financial services
which include Investment Banking, Corporate Finance, Portfolio Management Services,
Equity & Commodity Broking, Insurance and Mutual Funds.

• Jaypee Capital Services Ltd.

Jaypee Capital Services Ltd. is a registered self-clearing member with National Stock
Exchange and SEBI. It has the expertise and the experience to capitalize on daily stock
movements and employ over 20 specialist traders certified by the NSE.
• ICICI Direct
Online share and mutual funds trading facility by the ICICI group.
• Arcade Share & Stock Brokers
Arcadia group began its modest journey in 1995 and now Arcadia proudly boasts about
membership to NSE,BSE, Depository Participant (CDSL),MCX,NCDEX .The
philosophy of client servicing backed by all principal Indian Stock and Commodity
exchange gives Arcadia edge over other players in the industry segment to offer value
based services to its customers.
• Indianstockmarket.net

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Indianstockmarket.net is an effort to educate Indian investor by providing useful stock
news, stock market websites, informative articles, resources to various investment guides.

Major Developments in equity brokerage industry in India

• Corporate memberships
• Wider product offerings
• Greater reliance on research
• Accessing equity capital markets
• Foreign collaborations and joint ventures
• Specialized services/niche broking
• Online broking
• Emerging challenges and outlook for the brokerage industry
• Fragmentation
• Global Opportunities
• Competition from foreign firms
• Investor Protection

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The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should be
made to realize that ignorance is no longer bliss and what they are losing by not
investing.
Mutual funds offer a lot of benefit which no other single option could offer. But most of
the people are not even aware of what actually a mutual fund is? They only see it as just
another investment option. So the advisors should try to change their mindsets. The
advisors should target for more and more young investors. Young investors as well as
persons at the height of their career would like to go for advisors due to lack of expertise
and time.
The advisors may try to highlight some of the value added benefits of Mutual funds such
as tax benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these
benefits are not offered by other options single-handedly. So these are enough to drive the
investors towards mutual funds. Investors could also try to increase the spectrum of
services offered.
Now the most important reason for not availing the services of advisors was spotted was
being expensive. The advisors should try to charge a nominal fee at the beginning. But if
not possible then they could go for offering more services and benefits at the existing
rate. They should also maintain their decency and follow the code of ethics so that the

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investors could trust upon them. Thus the advisors should try to attract more and more
persons and turn them into investors and finally their clients.

By the help of Books

• Business Environment written By

“ Francis Cherunilam “
• Marketing Management written BY

“ Phillip Kotlar”
By the Help of Manuals

• Reliance Money Report of 2007 & Internet.

By the help of Other Sources

• By the head’s and the consultant of the Reliance Money.

By the help of Websites

1. www. IRDAIndia.org.

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 2. www.Reliancemoney.com
3. www.insure2bsecure.com
4. www.google.com
5. www. Wikkipedia.com

With the globalize economy and immense competition among countries for faster
development of their respective economies, the significance of Insurance, Mutual Funds
and Foreign investment has taken manifold. With a buoyant vibrant and experienced
stock market, India today is looking ahead to surpass China in terms of foreign
Investment and growth prospects. Stock exchange being the barometer of the economy
plays a vital role in showcasing growth of an economy and luring investment. While
studying the role of Insurance, Mutual fund and FIIs in Stock Market, I discussed with a
few persons who are into stock broking business. And the information they have provided
shows that though the investment and participation of domestic investors are rising, still,
they have not been able to prove themselves to be as influential as Insurance, mutual
funds and FIIs.

Importance and the role of Insurance, Mutual funds and FIIs play in the Indian stock
market can be seen from the fact that the recent surge in Sensex and NIFTY is attributed
to the active participation of FIIs in the Stock Market. Despite being aware of the Asian
economic crisis where FIIs role was of a major concern, the importance of foreign capital
in the development of economy can not be undermined in anyway.

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