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Share Trading and Mutual Fund



In partial fulfillment for the award of two year full time
Master of Business Administration (MBA) degree of
Uttar Pradesh Technical University, Lucknow

Submitted by
Roll No.:0827270011

Under Supervision
Designation: Branch Manager
Name of Company: RELIANCE MONEY

Submitted to:

Uttar Pradesh Technical University ,Lucknow

Greater Noida Instiute of Tecnology-MBA Institute
7,konowledge Park-II
Greater Noida -201306
8 THE STUDY 58-66
13 FINDINGS 93-95


This is to certify that the Summer Training Project Report entitled Share
Trading and Mutual Fund “A CUSTOMER PERSPECTIVE” being
submitted by Mr. Anuj Haldiya in partial fulfillment of the requirement for
the degree of the Master of Business Administration from U. P. Technical
University, Lucknow, is an independent original research work done by him
under my supervision and guidance.

Place: Gr. Noida Director

Date: GNIT- MBA Institute


This is to certify that Mr.Anuj Haldiya, a student of master Degree MBA

(2008-2010), Greater Noida Institute of Technology, Uttar Pradesh Technical
University, Uttar Pradesh has worked on the Project Share Trading and
The period for which he was working on this project was for 6 weeks, starting
from 1 June, 2009 to July 18, 2009. This dissertation report has the requisite
standard for the partial fulfillment the master Degree in master of Business
Administration. To the best of our knowledge, the contents are based on
original research.



It has been very enriching experience working in “RELIANCE MONEY”

(Anil Dhirubhai Ambani Group), Bareilly (U.P.). This department deals
with all products like DMAT A/c, Share Trading, Mutual Fund, Life
Insurance and General Insurance etc.

I am extremely thankful to everyone who has helped me to give this project

its present form. I am very thankful to Mr. Anand Prakash (Center
Manager) and Mr. Ramesh Yadav(Branch Manager) for providing me the
opportunity to undergo the practical training in the Sales and Distribution
Division of Reliance Money Limited under the supervision of Mr. Ramesh
Yadav (Assistant Center Manager). He guided me from time to time and
gave me dynamic ideas and suggestions by which I am able to complete my
training successfully.

I am thankful to the. Reliance Money Limited staff members who made
me feel comfortable during my training period & helping me in completion
of work assigned during the training period.
I sincerely thank all the visible and non-visible hands, which helped me to
complete the practical training with great success.

Last but not least I would like to thank my family who have always
encouraged me and taught me to think and work out innovatively,
whatsoever is the field of life .To be very candid, whatever I know about
marketing concept that has been possible due to the well managed intense
training education imparted under conditions, which are quite conducive to
learning, at my institute Greater Noida Institute Of Technology, Mgt.
Institute Gr. Noida.

Education and acquisition of knowledge has no limits or boundaries. It is an

ever – expanding field and we need to keep our faculties straight and absorb
this vast ocean of knowledge, as much as we can. Doing things we not only
widen our personal horizons but also able to present ourselves as a more
intelligent being in front of other.



Sr. No. Topic

1 Preference of investment
2 Awareness of online share trading
3 Preference of investing in stock market
4 Awareness of reliance money as a brand
5 Awareness of reliance money facilities
6 Customers having de-mate account in companies
7 Frequency of investment
8 Percentage of earnings invested in Share Trading
9 Problems faced during trading
10 Rating of products of Reliance Money
11 Customer awareness for the different brokerage company
12 Preference toward Mutual Funds
13 In which type of mutual fund people invest their money
14 What people see before investing in share market?
15 Comparison of Reliance money against other brokerage company
16 According to the Family expenses




Reliance Capital

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

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:

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

• 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.”


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
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 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.

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.

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 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.


Reliance Money is a comprehensive 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
At the present the company has more than 350 employees across 75
locations with a total number of 42 offices.

Reliance Money can be segregated into four main products which include:

1. Reliance Life Insurance Plans

2. Reliance General Insurance Policies
3. Reliance Mutual Funds
4. Reliance On Line Trading Facility




Overview of Demat Account.

In India, a Demat account, the abbreviation for dematerialised account, is a

type of banking account which dematerializes paper-based physical stock
shares. The dematerialised 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.


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 dematerialise by writing across
Surrendered for dematerialisation.
3. Submit the DRF & share certificate(s) to DP. DP would forward them to the
issuer / their R&T Agent .
4. After dematerialisation, your depository account with your DP, would be
credited with the dematerialised 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
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
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
• 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, 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
• Tools that help you plan your investments, tax, retirement, etc. in the
personal finance section
• Risk Analyser for analysis of your risk profile
• Asset allocators to build an appropriate investment portfolio

Reliance Money provides 3 different trading platforms for equity trading:

Insta Trade

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 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
• 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 dematerialised. The list is

available with your DP.
2. Only securities registered in the name of the account holder can be
3. Dematerialisation 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
4. Dematerialisation 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 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

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.

Organization of a Mutual Fund

Here are many entities involved and the diagram below illustrates the
organizational set up of a mutual fund:

Types of Mutual Funds on the Basis of Risk Vs Returns

Sector Funds

Diversified Equity

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


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

• 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

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

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
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
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 and .
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 Both purchaser as well 0.125%
equity shares or units of as seller
equity oriented mutual
funds on a recognised
stock exchange on
delivery basis
Sale on stock exchange seller 0.025%
of equity shares or units
of equity oriented
mutual funds on non-
delivery basis
sale of derivatives Seller 0.017%
reorganized stock
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

• 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
power sector retail 1000 62.74 30/5/2008 14524.07
Reliance regular savings 1000 22.20 30/5/2008 13584.944

equity 8
principal global
opportunities fund 1000 18.86 30/5/2008 14247.728
DWS investment
opportunities fund 1000 35.31 30/5/2008 13791.157
BOB growth fund 1000 42.14 30/5/2008 13769.152

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

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 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

• 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

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.
• 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 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 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

How You Can Invest in a Mutual Fund?

There are two ways in which you can invest in a mutual fund.

1. One-Time Outright Payment

If you invest directly in the fund, you just hand over the cheques and you
get your fund units depending on the value of the units on that particular

Let’s say you want to invest Rs 10,000. All you have to do is approach the
fund and buy units worth Rs 10,000. There will be two factors determining
how many units you get.

Entry load

This is the fee you pay on the amount you invest. Let’s say the entry load is
2.25%. Two percent on Rs 10,000* would Rs 225. Now, you have just Rs
9,775 to invest.


The Net Asset Value is the price of a unit of a fund. Let’s say that the NAV
on the day you invest is Rs 30. So you will get 326.67 units (Rs 9800 / 30).

2. Periodic Investments

This is referred to as a SIP (Systematic Investment Plan).

That means that, every month, you commit to investing, say, Rs 1,000 in
your fund. At the end of a year, you would have invested Rs 12,000 in your

Let’s say the NAV on the day you invest in the first month is Rs 20; you
will get 50 units.

The next month, the NAV is Rs 25. You will get 40 units.

The following month, the NAV is Rs 18. You will get 55.56 units.
So, after three months, you would have 145.56 units. On an average, you
would have paid around Rs 21 per unit. This is because, when the NAV is
high, you get fewer units per Rs 1,000. When the NAV falls, you get more
units per Rs 1,000.
1. Is there a load?

An exit load is a fee you pay the fund when you sell the units, just like the
entry load is a fee you pay when you buy the units. Initially, funds never
charged an entry load on SIPs. Now, however, a number of them do.

You will also have the check if there is an exit load. Generally, though,
there is none. Also, if there is an entry load, an exit load will not be

An exit load may be charged if you stop the SIP mid-way. Let’s say you
have a one-year SIP but discontinue after five months, then an exit load will
be levied. These conditions will wary between mutual funds.

2. What is the Minimum Investment?

If you do a one time investment, the minimum amount that you have to
invest is Rs 5,000.

If you invest via an SIP, the amount drops. Each fund has its own minimum
amount. Some may keep it at least Rs 500 per month; others may keep it as

Rs 1,000. [Only in Reliance mutual funds, you can invest as little as Rs.
100/- per month.]

3. How often does one have to invest?

It would depend on the fund.

Some insist the SIP must be done every month. Others give you the option
of investing once in three months or once in six months.

They also give fixed dates. So you will get the option of various dates and
you will have to choose one. Let’s say you are presented with these dates: 1,
10, 20 or 30. You can pick any one date.

If you pick the 10th of the month, then on that day, the amount you have
decided to invest in the fund has to be credited to your mutual fund.

4. How must the payment be made?

You can opt for the Electronic Clearance Service from your bank; this
means the mutual fund will, as per your instructions, debit a certain amount
from your account every month.

Let’s say you have a SIP of Rs 1,000 every month and you have chosen to
invest in it on the 10th of every month. Under this option, you can instruct
your mutual fund to directly debit your bank account of Rs 1,000 on the due

If you don’t have the required money in your account, then for that month,
no units will be allocated to you. But, if this continues periodically, the
mutual fund will discontinue the SIP. You need to check with each mutual
fund what their parameters are.

Alternately, you can give cheques to your mutual fund. In this case, they
may ask for five Post Dated Cheques upfront with your first investment.

Since these cheques are dated ahead of time, they cannot be processed till
the date indicated.

5. Must I state for how long I want the SIP?

Yes. You will have to state whether you want it for a year or two years, etc.
If, during the course of this period, you realize you cannot continue with the
SIP, all you have to do is inform the fund 15 days prior to the payout.

The SIP will be discontinued. You can continue to keep your money with
the fund and withdraw it when you want.

6. Do all funds offer SIP?

No. Liquid funds, cash funds and floating rate debt funds do not offer an
SIP. These are funds that invest in very short-term fixed-return investments.
Floating rate debt funds invest in fixed return investments where the interest
rate moves in tandem with interest rates in the economy (just like a floating
rate home loan).

All types of equity funds (funds that invest in the shares of companies), debt
funds (funds that invest in fixed-return investments) and balanced funds
(funds that invest in both) offer a SIP.

7. Tax implications

Let’s say you have invested in the SIP option of a diversified equity fund.

If you sell the units after a year of buying, you pay no capital gains tax. If
you sell if before a year, you pay capital gains tax of 15%.

Let’s say you invest through a SIP for 12 months: January to December
2007. Now, in March 2008, you want to sell some units.

Will you be charged capital gains tax?

The system of first-in, first-out applies here. So, the amount you invest in
January 2007 and the units you bought with that money will be regarded as
the units you sell in March 2008.

For tax purposes, the units that you sell first will be considered as the first
units bought.

8. How will an SIP help?

When you buy the units of a fund, you may do so when the NAV is really
high. For instance, let’s say you bought the units of a fund when the Bull
Run was at its peak, leading to a high NAV.

If the market dips after that, the value of your investments falls and you
may have to wait for a long while to make a return on your investment. But,
if you invest via a SIP, you do not commit the error of buying units when
the market is at its peak. Since you are buying small amounts continuously,
your investment will average out over a period of time.
You will end up buying some units at a high cost and some units a lower
price. Over time, your chances of making a profit are much higher when
compared to an one-time investment.


Points To Consider Before Investing
It’s always risky to invest your money in one stock. The confidence in a
stock may be effective but the overconfidence can be hazardous. The stocks
and stock markets have very irregular nature. It is very hard to analyze the
future conviction of a stock. The unpredictable things may occur, which
may have shocking effects on the investors.
The investors should always track few lucrative stocks before investing.
The investors are always advised to interpret the stocks and stock market
correctly, study the past as well as present movements of the stocks, and
adopt the flexible policies that may deal with the changing market trends.
It is very difficult to predict the future of the stock market, but the investors
outline brief plan about how the market may perform in the coming future
on the basis of market trends. The stock markets are highly volatile and
erratic in nature. The investors should follow the active market trends and
manage their stocks in such a way so that they must earn some gain.

If you are a day trader, you should make proper selection of the stock and
when the suitable time comes, sell it. Don’t wait for further increase;
otherwise you may lose your money. In case of long-term investing, you
should pick the stocks that have some demand and when the price reaches
to its highest peak, covering your costs plus profits, then its better to sell it.
You must take help from an expert and follow proper instructions to make
bigger profits.

Stock Market Story
Stock exchange provides an opportunity to investors to invest money in the
securities of their choice. It is a structured securities market that offers
sufficient marketability and price stability for shares so essential for the
requirements of investors. It (stock market) is considered as a symbol of the
growth of an economy.
Stock market offers a balanced measure of security and integrity in the sale
and purchase of different securities. Through the interchange of demand for
the supply of securities, a well-structured securities market helps in accurate
valuation of stocks. The stock exchange assists in the systematic flow of
distribution of savings as between various kinds of aggressive investments.
The stock exchange is considered as an organization of huge
significance in every country. Industrial development and expansion hinge
upon capital formation, that is, money being invested in various securities.
This becomes achievable on a large scale due to subsistence of stock
exchanges. Those who are interested in investing their funds are usually
fascinated towards securities issued by various companies.
The prices of particular securities traded at the stock exchanges reflect their
relative demand and supply. The prices of securities also indicate the
financial health of individual companies. This serves as a guide to the
investors to invest in sound securities.

The security price index schedule provides a reasonable indication of the

state of the economy, industry and business. That’s why the stock exchange

is known as the ‘barometer of the economy.’ Just like, the barometer depicts
the changes in atmospheric pressure; stock market quotes give an idea about
the economic progress of a country.

Swing Stock Trading

Swing stock trading is a short-term trading technique in which stocks are
held only for shorter periods such as two to four days or weeks. Normally,
the newcomers adopt this style and it depends on the weekly or monthly
variations in stock prices.
Swing trading provides higher returns as compared to day trading.
However, swing traders have to suffer overnight risk, which could have
adverse affect on stock price. Swing traders suffer less challenge from big

During the upward trend, a swing trader observes a particular stock for a
couple of days. If there is a downfall in the market, the trader shifts to
another emerging stock. Swing trading is most productive, when the
markets are performing firmly.
A swing trader appraises the temporary impulsion and pricing strategies of
the stock, rather than its basic value. Swing stock trading carries lesser
risks. A swing stock trader takes advantage from the expected steady
market instabilities.

When there is substantial price variation in the market, the swing trader

sells the stock without waiting. Swing stock trading provides quick results,
but the important thing is to choose the right market and the right stocks.
Swing trading ignores rapid increase or decrease in stock prices and the
prices tend to go in straight direction without fluctuating. Swing trading is
best for part-time traders, while day traders have to watch each and every
movement in quotes and they have to stick to their computers for many
hours. Swing trading doesn't require that type of focus and dedication.
In brief a swing trader’s aim is to generate money by captivating the
immediate changes that stocks attain in their lifetime, and at the same time
manipulating their risk by following suitable money management practices.

Day Trading
Numerous people have wrong perception that short term trading strategy is
chancy and long term trading strategy is secure. But this is wrong, both
short term trading and long term trading can be effectual trading strategies.
Stock market is a place where investors can earn lots of money in the short
time as well as in the long run. The return on investments mainly depends
on the time durations for which the investments are made. There are various
types of trading styles that investors may opt to make profits from the stock
market. In this article we talk about day trading.
Under day trading method, the stocks are held only for short periods - for
few hours or minutes or seconds. The day trading offers various
opportunities to make big profits daily. The trading process for the day
trading comprises exciting strategies, which assist the investor to make
good profits.

Day traders buy and sell stocks during the whole day, hoping that the price
of the stocks will rise and let them to make quick gains. A day trader will
sell all stocks before closing of stock market. The purpose of day trading is
to speedily get in and out of any stock for a return anywhere from a few
cents to several points per share on an intra-day basis.
The day trading helps investors to control the fear of overnight risk. If the
investors have ideal plans to choose the investment opportunities from the
stock market, the day trading is the best option idea to make quick money.

Online Stock Investing Benefits

Online stock investing is an emerging technique to trade stock but when
practiced by the average person can be a complete waste of money and
time. The average person needs to be acquainted with the ups and downs of
stock trading in order that they can stop losing money when they buy and
sell stock.
In reality, when you purchase stock, you are becoming a shareholder in that
company. The company will then take the money you used up to obtain that
share to amplify the company and make more money. When the business
makes more money the stock price will grow up. You can then sell the
stock to make more money than you invested, or if the company loses
money from when you purchased the stock you suffer a loss.
If you are interested in entering the online stock-investing world, you
should go online and make an account thru an online brokerage company.
After setting up your online account, you can begin to trade stock. It is also

very important that you have some knowledge about stock trading. Here are
some benefits of online stock investing:

 When trading stock online the broker's commissions are less. The
Brokerage charges are Rs. 12 per transaction and not depending on the
amount of money in the Reliance Money
 Online trading is advantageous as the company lets the investor to chart
the lucrative stocks and also updates the investor with the most recent
updates and news on the stock market.
 One of the best parts about online stock trading stock is its easiness to
access your account, get detailed information about the company and stock
you invested in, etc.
 You have total freedom to buy and sell stock in your own way and at
your own time. Basically online investing is the best way to invest money
with complete freedom.
 If you want help while trading online you are capable of making contact
with other trained brokers and investment counselors and ask questions to
 When you trade stock at your home, you save lots of money and time.

Investing In the Stock Market

Online stock trading is a new technique of buying and selling stocks, which
has created a boom in the stock market industry. It has made all people to
have the benefit of stock trading by using their own PC. Now you can buy
and sell any stock over the Internet and it doesn’t take much to begin. Thru

online facility, you can have a proper check over the market situation from
any corner of the world.

In today’s hasty and hard life, nobody has time to personally visit the stock
brokers or companies to collect information or to invest in their schemes.
So, the invention of internet has proved to be the most excellent tool in the
stock trading that has given rise to trade stock online from the comfy
atmosphere of your home or office. Here are few points that you have to
consider while getting involved into it:

- You should make proper research for a well-known and trustworthy

company before putting your hands in stock market as there are several
Internet sites that deal in the buying and selling business of stocks. You
should get through the evaluations and testimonials of different investors
those who are already dealing with them and you can also visit bulletin
boards to grab information about other companies.

- There are several Internet sites that are linked to the buying and selling of
stock to foreign markets while some are related to the overseas as well as
domestic markets. You should decide earlier with which company you want
to start trade so that you should not mix up the things.
- You should always go for the sites that are completely secured as your
financial plus personal information has to be inserted over the site to start
the stock trading online. If the security of the site is less than your level of
satisfaction then need not to step in as there might be the chances that your
loaded data can be abused in future.

- First investigate about the payment or other charges charged by different
sites. You should always choose the site charging less fees per trade, thus,
you should take the benefit of online trading that cannot be enjoyed in
trading stock in a traditional manner. Online investment sites provide 24 x 7
hours assistance so that if you need any help, they should always be present
to support you.

Online Stock Trading Is Very Opportunistic

Stock market is a place where investors can make continuous profits by
investing their funds in different segments. Stock trading has turned into big
business, now-a-days. It offers several choices to investors, which include
breakeven (BE) systems, online stock trading, futures trading and chances
to make bigger gains. Each stock investment is based on three vital
constituents i.e. capital, outlook and technique.
There are numerous investors that buy or sell shares on a daily basis.
The online facility has made stock trading an easier and simpler process.
The online stock trading (buying and selling of stocks) thru Internet has
attained much important all through the world. Because of its advantages, it
had attracted more and more users.
Online stock trading lets investors to buy or sell shares automatically. It is a
resourceful and suitable method to scrutinize the stock market and make
investments in the lucrative sections. But, it is vital that investors should
have proper knowledge about stock market basics, otherwise it will create
problems in future.

The online stock trading has offered an opportunity to investors to
branch out their temporary plus permanent investment plans, and to make
investment in stock markets all thru the world. The other benefit of online
trading is that investors need to pay less brokerage charges. It also helps
investors to take immediate action, without any delay. The number of
online companies also provides the services like stock trading, automatic
investment and even reinvestment of dividends with info to buy or sell once
the price reaches a higher level.
In order to make better returns on investments, investors can hire a stock
broker. Investors can also take help from a trading professional or a trading
institute that will offer advantageous opportunities for their investment bag.

Points to Remember for a Newcomer in Stock Market

We all are interested in investing money in the stock market, which
provides opportunities to increase our wealth within short periods. Stock
exchanges encourage investments and provide a permanent market for
securities. Various types of securities are traded there. Therefore it is an
easy way for investors to utilize their available cash instead of blocking.

If there is an upward trend in the stock market, then you can easily reap
gains in much lesser time, but if there is downfall, you need to wait for
some profitable time. Stock market fixes no limits on investors; they can
easily make their profits and raise their profitability accordingly.

But, it is necessary that you must know the basic rules and conditions of the
stock market. The trading in a stock exchange is done under strict rules and
in a very orderly manner. Stock market conditions assist you to earn higher
gains with your limited incomes. If you are a newcomer, then you have to
gain some knowledge about this opportunistic market. Stock market carries
higher degree of risk for all. Whether you are a day trader, swing trader or
long-term holder, you need to follow some rules.

Stock exchanges are well-organized markets that publish the quote list of
the securities traded on daily basis. The investor gets the latest prices of
their securities, which are prepared by the experts. Stock exchange acts as a
middleman between the seller and buyer of securities. Therefore, it helps in
mobilization of funds for the companies.

Is trading through the Internet safe?

The safety of transactions on the Internet depends on the encryption system
used. The better this transaction system, the more difficult it is for any
person to hack the site.
Internationally, the best system available today is the 128-bit encryption, a
system, which evens the Pentagon uses. is one of the few
online share-trading sites in the country equipped with this 128-bit
Secondly, you too can ensure the safety of the transactions online. You
normally get a secured user id and password, the secrecy of which is to be
maintained entirely by you.

Thirdly, if the transaction system requires no manual intervention, you
further improve the safety in the transactions. Among Indian sites, is one of the very few fully integrated online trading sites.
This enables the elimination of the possibility of any manual intervention.
Which means orders are directly sent to the exchange ensuring that you get
the best and right price?

What about security of my money demat shares and my transaction


In systems where the broking, banking and demat accounts are completely
integrated, your money remains in your own bank account, and does not get
transferred to the broker's pool account.

Is trading through the Internet a difficult and cumbersome


The experience of trading through Internet depends a great deal on the type
of product offered by the site. Say, for example, one of the issues bothering
you may be tired of the paperwork involved after every trade in writing
cheques or TIFDs.
You would then seek a system that eliminates these processes. In online
trading sites, the greater the back-end integration of the system, the greater
the amount of work the sites do for you, therefore greater the convenience
available to you.For example, incase of, your broking
account, bank account and demat account are linked electronically. So when
you punch in a buy or sell order, the system checks the funds/ shares
availability and automatically credits/debits the accounts once the order is
executed by the exchange.

But I am not comfortable with Internet, or with finance, how

can online trading be easy for me?

Contrary to common perceptions, trading through Internet does not require

either any expertise in working on the computer, or any special financial

You could try the demo (demonstration) of the online trading sites like to find out why others like you, with little or no knowledge
about the Internet or finance, have switched on to online trading. Or you
could attend the demonstrations sessions held by such websites in your city.

How frequently is the price updated at all these online trading


The tickers available at online trading sites provide instantaneous updates.

Also, some websites can offer to transact in those shares instantaneously
and with convenience.

How can I be sure that I shall be trading at a price I want to
or at a price appearing in the website?

The solution to your problem could be provided in different ways by

different online share trading sites. At Reliance Money, for any trade order,
the customer is asked to click "Proceed" after he has the opportunity to
completely check the order verification form.
Moreover, you have the option of modifying or canceling the order till the
moment the order is executed at the exchange.
Finally, online trade confirmations reach reaches our customers within 4
minutes, while contract notes are dispatched at the end of the day and reach
within 12-24 hours.
With Reliance Money, you decide what you want to buy and buy the share
at the price you want to and therefore you are in total control of your trades.






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 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 country’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. 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
• Kotac Mahindra old Mutual Life Insurance
• Aviva Life Insurance
• MetLife India Life Insurance
• 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.
You can now buy and sell shares on 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 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
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
• 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


 SEBI - The capital markets regulators also regulates the mutual funds in
India. SEBI requires all mutual funds to be registered with them. SEBI
issues guidelines for all mutual funds operations - investment, accounts,
expenses etc.

 RBI- as supervisor of banks owned mutual funds - As banks in India
came under the regulatory jurisdiction of RBI, bank owned funds to be
under supervision of RBI and SEBI.

 RBI as supervisor of Money Market Mutual Funds - RBI has

supervisory responsibility over all entities that operate in the money
markets. Hence in the past Money Market Mutual Funds scheme of Mutual
funds had to be abide by policies laid down by RBI. Recently, it has been
decided that Money Market Mutual Funds of registered mutual funds
will be regulated by SEBI through SEBI (Mutual Fund) Regulations

 Ministry of Finance - (MoF) ultimately supervises both the RBI & the
SEBI and plays the role of apex authority for any major disputes over SEBI

 Company Law Board - Dept of Company Affairs - Registrar of

AMCs of Mutual funds are companies registered under the companies Act
1956 and therefore answerable to regulatory authorities empowered by the
Companies Act.

 Stock Exchanges
Stock Exchanges are self-regulatory organizations supervised by SEBI.
Many of closed ended funds of AMCs are listed as stock exchanges and are
traded like shares
 Office of the Public Trustee
Mutual funds being public trust are governed by the Indian Trust Act 1882.
The Board of trustees or the Trustee Company is accountable to the office
of the public trustee, which in turn reports to the Charity commissioner

 Unit Trust of India

Unit Trust of India formed under UTI Act 1963.The Management of the
Trust is under a Board of trustees, which has names of RBI, IDBI, LIC, and
SBI with the chairman appointed by the Government of India in
consultation with the IDBI.

 Self-Regulatory organizations
A Self Regulatory organization (SRO) is an association representing a
group of market participants, which is empowered by the apex regulatory
authority to exercise pre-defined authority over regulation of their members.
For example stock exchanges.
However everybody representing a group of market participants does not
automatically become a SRO.

 Association of Mutual funds of India (AMFI)

AMFI is not a SRO. It has been formed in 1995 with the objective of
representing the Mutual fund industry collectively with a view
- To promote the interests of Mutual Funds and Unit holders.
- To set ethical, commercial and professional standards in the industry.
- To increase public awareness of Mutual funds in the country


The main objective of training is to aware students about new market
concept & industrial environment in which they have to work after the
completion of their course
It is not possible for students to master everything in this short span of
time. But it does help the students in knowing about what is happening in
the market & new technologies & trends that are prevalent in the market.
My objective during the summer training was to learn about all the
products. The company provides the knowledge about the online share
trading, DMAT A/C, mutual fund and Life Insurance. It gave the basic
knowledge as well as the concept behind these. I also learned about how to
deliver the products in front of the customers. It was a good learning that
how to interact with the different kind of customer in the market.
Therefore I have selected a topic for the project which is related to
customer perspective about share trading and mutual fund with reference to
Reliance Money.


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


Proceeding further after determines the Methodology and limitation of the
study the next step is to analyze the Data being collected for the study. Data is
being collected from various sources like:-
 Questionnaire
 Personal visit
 Telephonic Information etc.
Questionnaire is a written form being given to the prospective investor
to give feedback about the services provided to them and also to find
the satisfaction level of the investor for a particular investment
product .Questionnaire is an easy and simple way of collecting a data
.After filling up of form the next step is to evaluate the form in different
dimensions and draw a conclusion.
It is difficult to get a Questionnaire filled by corporate because of time
they don’t have time to fill the Questionnaire so at the time of meeting
them personally or after that the Questionnaire is filled by us.
The Sample size taken for this study is 100 which is not enough to draw
a conclusion but due to time limitation only this much size has been
taken into consideration. After analyzing the Questionnaire the
following evaluation has been done:-




After analyzing the above table the conclusion was made that the business
people are more Risk taker while professional people are less Risk taker
where the return expected in both the case are high.


The second way of collecting data is Personal Visits to the cooporates
personally by fixing an appointment. Personal Visit gives a clear picture of
the conclusion drawn in Questionnaire It gives a clear view of the client
Awareness about the product .Some of the difficulties in making Personal
Visits are:-
 To take a time or appointment from the cooperates.
 To convenes investor to invest in a particular product.
Personal Visit gives a clear picture about the Investment areas of both the

From the above table it is clear that the Professional people invest in the
Value Added items where as Business people they invest in Future
Prospect assets like land, gold etc.
The further source of collecting data is telephonic information with the
existing customer and the prospective investors. It is very difficult to reveal
the data of investors from the company itself because it has been kept as a
secret document. After getting a data some problems too come in the way.
Some are:-
 People are not ready to listen.
 People ask question like from where did you get the number?
 From this source not much of the Information is drawn.
 Few respondents where not happy with the level of customer
services endured by

The research was carried out in Bareilly city only. I have visited people
randomly nearby my locality, different shopping malls, small retailers etc.
Data sources:
Research is totally based on primary data. Secondary data can be used only
for the
reference. Research has been done by primary data collection, and primary
data has been collected by interacting with various people. The secondary
data has been collected through various journals and websites and some
special publications of R-MONEY.

 Sampling procedure:
The sample is selected in a random way, irrespective of them being investor
or not or availing the services or not. It was collected through mails and
personal visits to the known persons, by formal and informal talks and
through filling up the questionnaire prepared.

 size:
The sample size of my project is limited to 100 only.

 design:

Data has been presented with the help of pie charts.



1. Preference of Investment

Fig.1 Result of Preference of Investment

This shows that although the mutual funds market is on the rise yet, the
most favored investment continues to be in the Share Market. So, with a

more transparent system, investment in the Stock Market can definitely be

2. Awareness of Online Share Trading

Fig. 2 Result of Awareness of Online Share Trading

With the increase in cyber education, the awareness towards online share
trading has increased by leaps and bounds. This awareness is expected to
increase further with the increase in Internet education.

3. Preference of investing in stock market

High returnsand high risk Tax Benefits Short term gain from investment



The study shows that most of the people prefer to invest in stock market
because of high risk and high return whereas some other try to capture the
short term gain from investment. But a very few section of people invest
because of the benefits they gain in tax.

4. Awareness of Reliance Money as a Brand

Fig.4 Result of Awareness of Reliance money as a

This pie-chart shows that reliance money has a reasonable amount of Brand
awareness in terms of a premier Retail stock broking company. This brand
image should be further leveraged by the company to increase its market
share over its competitors.

5. Awareness of Reliance Money Facilities

Fig .5 Result of Awareness of Reliance money

Although there is sufficiently high brand equity among the target audience
yet, it is to be noted that the customers are not aware of the facilities
provided by the company meaning thereby, that, the company should
concentrate more towards promotional tools and increase its focus on
product awareness rather than brand awareness.

6. Customers having Demat account in companies

Reliance India bulls Kotak Mahindra ICICI Direct others




7. Frequency of Trading

Fig 7 Result of Frequency of Trading

Inspite of the huge returns that the share market promises, we see that there
is still a dearth of active traders and investors. This is because of the non –
transparent structure of the Indian share market and the skepticism of the
target audience that is generated by the volatility of the stock market. It
requires efficient bureaucratic intervention on the part of the Government.

8. Percentage of earnings invested in Share Trading

Fig 8 Result of percentage of earning invested in share trading

This shows that people invest only upto 10% of their earnings in the
stock market, again reiterating the volatile and non-transparent structure of
the Indian stock market. Hence, effective and efficient steps should be
undertaken to woo the customers to invest more in the lucrative stock

9. Problems faced during trading

Network Problem Information Related Problem

Manual operating problem Service provide problem

20% 20%



The most common problem faced by people during trading is the
information related problem i.e., they don’t get the required information
about trading either online or offline. Whereas some other problems are also
there like network problem, in manual operating problem and service
provider problem.

10. Rating of products of Reliance Money

Excellent Good Average Poor




About 20% of the people rated the products of reliance money as excellent
whereas 50% rated it as good. While some others rated it as average and a
very small portion of people rated it as poor.

11. Customer awareness for the different brokerage company

Company more somewhat more less
aware aware aware aware
direct 25 35 20 20
Money 38 30 12 20
Karvey 45 15 25 15
Sharekhan 30 20 34 16

A w a re n e s s C h a rt

40 m o re a w a re
30 s o m e w h a t a w a re

20 n o t m o re a w a re
10 le s s a w a re
ic ic i d ire c t R e lia n c e K a rve y S h a re k h a n
M oney
Com pa ny

The awareness about various companies is tabulated above. It is shown in

the bar chart that the maximum customers are aware of karvey Brokerage
Company. The awareness towards ICICI Direct and Sharekhan is nearly
same. About 48% customers are aware about the Reliance money. Only
20% customer said that we don’t know the exactly the services provided by
the Reliance Money.

12. Preference toward Mutual Funds

To minimize the risk 89 9 2 0 0
Influenced by past
performance 56 29 9 6 0
Broker motivation 35 20 25 16 4
For assurance & security 81 12 4 3 0

80 SA
60 A
50 N
40 D
20 SD
To minim ize the Influenced by Broker For assurance &
risk past m otivation security
perform ance

People invest their money in the mutual fund. It is shown in the bar chart
that persons invest their money in mutual fund only to minimize the risk.
Because investing money in mutual fund has a less risk. Therefore 90%
customer said that they prefer to invest money in mutual fund. People get
more assurance and security by investing their money in mutual fund.
Mostly people influenced by their past performance and people are not
more motivated by broker when they invest in mutual fund.

13. In which type of mutual fund people invest their money

Growth Fund 56
Tax Saving Fund 26
Balanced Fund 10
Equity Fund 8
Any other 0

In w hich type of mutual fund customer invest


8% 0%
10% Growth Fund
Tax S aving Fund
B alanced Fund
56% E quity Fund
A ny other

It is shown in the above pie chart that nearly 56% people invest money in
growth funds. After this people like to invest their money in Tax saving

fund. People invest money in balanced fund and equity fund nearly 10%
and 8% respectively. There is more chance to get less in growth fund but
there is more security of money.

14. What people see before investing in share market?

Company Image 19

Company Performance 58

motivated by experience person 10

market cap of company 13

about investing company

Com pany Im age
50 Com pany Performance
30 m otivated by experience
20 person
m ark et c ap of company

Every person thinks about the company in which he is going to invest. He
get the information form magazines, Newspapers and also through internet.
About 58% people said that they see the current and last performance of the
company before investing the money in share market. 19%people see the
company image before investing the money in the share market. Nearly
10% people see the market cap and motivated by any experience person
before investing money.

15. Comparison of Reliance money against other brokerage company

Provide better return to the 67 21 2 0 0
Brokerage charges are very less 88 11 1 0 0
Transparency of money to the 65 24 7 4 0
customer is high
Security of money is high 57 19 16 6 2
Easy to access online trading 37 29 7 18 9
No charges if you do share trading 79 17 3 1 0
Charge coupon strategy is good 49 38 3 8 2
Provide full satisfaction to the 41 18 14 23 4
Provide the information in easy and 62 12 3 9 14
better way
More careful for his customer 19 48 6 18 9

10 0
80 SA
60 A
50 N
40 D
20 SD
P rovid e b etter B rok e ra ge Trans p aren c y of S e c urity of E as y to a c c es s
re tu rn to the c h arges are verym on ey to the m o ney is high onlin e trading
c us to m e r les s c us to m er is high

Reliance money provides the good return to the customer as it is shown in

the above bar chart. More than 60% customers are strongly agreed with this
comment. 20% are those people who are agree with this comment. It is
clearly shown in the above chart that reliance money is a cheapest
brokerage company in present scenario. People opt that there is more
transparency of money for the customer. More than 60% customers think
that it properly manages the money of customers. The security of customer
is also very high in the reliance money because there are no intermediaries
between the Reliance money. The software provided by the Reliance money
is easy to access in comparison to others as well as have high speed.

70 SA
60 A
30 D
20 SD
No charges if Charge coupon Provide full Provide the More careful for
you do share strategy is good satisfaction to information in his customer
trading yourself the customer easy and better

It is shown in the above chart that it will not cut any charges if customers do
share trading himself. The charge coupon strategy of reliance money is a
very good and people are attracting towards this company due to these
facility. There is some problem in the satisfaction level to the customer of
reliance money. More than 20% customer said that it doesn’t care their
customer after opening their DMAT A/C. Most of customers are satisfied
with the information provided by the reliance money.

16. According to the Family expenses

Family Expenses No. of Customer

upto 5000 14
5001-10,000 37
10,001-20,000 34
20,001-30,000 11
30,001 and above 4

No. of Customer acc. to their family expenses

11% 4% 14%
upto 5000
34% 37%
30,001 and above

Those people whose family expenses are more than 30,000 per month
invest more money in the stock market and mutual fund. Therefore
investment is depending on the family income. Share Trading is all about

the risk of money. Sometime person loose money and some time gain
depending upon the market conditions.



 As the test result shows that there is significant difference among the
opinion of the customers regarding the positioning factors, the following
conclusions will elaborate the positioning factors which are given more
preference by consumers.

 At the survey conducted upon 200 people, (67.5%) are already mutual
fund investors/an insurance policy owner or are interested to invest in future
or take an insurance policy and the remaining are not interested in doing
either of it. So there is enough scope for the company to target those
participants (32.5%) to convert them into investors through their convincing
power and great communication skills.

 Now, when those rest people were asked about the reason of not investing
in mutual funds , then most of the people held their ignorance responsible for
that. They lacked knowledge and information about the mutual funds .
Whereas just 10 people enjoyed investing in other option.
 Out of the 135 persons who already have invested in mutual funds/or taken
an Insurance policy are interested to invest, only 18% have sound knowledge
of MFs and various Insurance policies, 34% people are aware of only the
schemes in which they

have invested. 27% possess partial knowledge whereas 21% stands nowhere
in knowledge about MFs and as far as the Insurance polices are concerned
they are still confused.
 33 participants buy forms directly from the AMCs, 28 from brokers only,
55 from brokers and sub-brokers even then 15 people buy from other sources.
The brokers and sub brokers have the maximum reach so they should try to
make those investors aware f the happenings, even the AMCs should follow it.

 When asked about the most alluring feature of MFs, most of them opted for
diversification, followed by reduction in risk, helps in achieving long term
goals and helps in achieving long term goals respectively.

 Most of the investor preferred to invest at a young unmarried stage. Even

32 persons were ready to invest at a stage of young married with children but
person with older children avoid investing due to increased expenses. But
again the number rose to 27 at pre-retirement stage.




The company is new one and subsidiaries of Reliance Capital and separated
from it in the last year. The company penetrates its market share in a very
fast way. The franchisees of Reliance money is increasing day by day in big
cities where people are have ability to invest their money in stock market.
But there is a need to concentrate on few places where it can come out from
weak points. In India most of people have lot of money but they are not
aware of these concept. Therefore there is need to spread the awareness
among people through a proper channel. The following factors can help to
improve the market share of reliance money.
1. The major factor on which company should concentrate is a proper
service provided to the customer. The customer is the king for the company.
It is the customer by which the company is progressing.
2. It is providing their ad on TV in proper way but there is a need to
improve the ad in print media like Hindi newspaper and some more
magazines which is penetrating in the rural area.
3. The company should have the customer data in a proper way and should
communicate their customer weekly or fortnightly.
4. The company should take the written feedback about the services
provided by the Reliance money franchisees.

5. It should provide the training to the maximum number of management
student so that the awareness about the reliance Money products and brand
image spread in a fast and in a right way.


It is concluded that Reliance money is improving their infrastructure and

market share in a fast way. The above analysis shows that it is giving
competitive to the other brokerage companies. Its brand image is increasing
day by day in the mind of common man. The maintenance charges of the
Reliance Money are far –far less than the other companies. People are more
ready to give initial cost Rs. 500 for employee person and Rs, 750 for the
businessman. After that there is not so much charges for the share trading. It
is only company which shows the higher growth when market goes down.
The service provided to the customer is averaged. This is the only factor
where there is a need of improvement of proper service. People know the
company but they are less aware of the services provided by the company.









1. Business research Methods by William G, Zikmund

2. Marketing Management by Philip Kotler
3. Investments by Bodie, Kane & Marcus

1. Business Today
2. Business World


1. The Economic Times

2. Times of India
3. Business Standard


I, the student of Greater Noida Institute of Technology, Gr. Noida

conducting a survey on the topic Share Trading and Mutual Fund “A
Customer Perspective” Basis Reliance Money to analysis the customer
trend in the security market. Thank you very much for your kind

1. Do you invest your money in share trading and mutual fund?

(a)Yes (b) No
If Yes

2. According to your awareness rank (1 to 4) the following brokerage

1- More aware, 4- Less aware

Company ICICI Reliance Karvy Share

direct Money khan

3. You get the information about share market and mutual fund
through –

(a) Magazine (b) TV (c) Internet (d) Friend and relative

(e) other specify

4. You do share trading through-

(a) Yourself (b) brokerage company (c) Friend (d) any experience

6. You prefer invest your money in mutual funds- Tick () your
Where SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree and SD-
Strongly Disagree
To minimize the risk
Influenced by past
Broker motivation
For assurance & security

6. In which type of mutual fund do you invest?

(a) Growth fund (b) Tax saving fund (c) balanced Fund
d) Equity fund (e) Any other specifies

7. Who influenced your decision to invest in Mutual Fund?

(a) Broker (b) Friends and Family (c) Advertisement (d)


8. What brokerage charges are you currently paying?

(a) 0.00-0.05 (b) 0.06-0.25 (c) 0.26-0.50 (d) 0.51-0.75

(e) 0.76 and above

9. Which of the following company do you know which provide the

share trading facility? Please ()

Company ICICI direct Reliance Money Karvy Sharekhan

10. How much return do you think to get from share trading?

(a) 10% (b) 11-20% (c) 21-30% (d) 31-40% (e) 41-50%
(f) Above 50
11. What do you see before investing in share market?

(a) Company image (b) company performance (c) motivation

by experience person (d) market cap of company

12. According to you which one provides better service (Rank the
following 1 to 4 where

1- Better service, 4- Poor Service

Company ICICI direct Reliance Karvy Share

Money khan

13. When do you start thinking over market, what is going to happen in
near future?

(a) After loosing the money (b) before loosing the money (c) on
the basis of increasing trend (d) globalization factor

14. How much time do you give daily to analyze the market?

(a) Up to 1 hour (b) 2 hour (c) 3 hour (d) 4 hour (e) 5

and above

15. When you loose money then on which you blame?

(a) Knowledge level (b) your decision (c) market (d)


16. According to you which option is better to invest your money?

(a) Mutual Fund (b) Fixed Deposit (c) Insurance (d)

Share trading

17. Do you make any portfolio before investing in share trading?

(a) Yes (b) No

18. Reliance Money attracts more customers against other brokerage

company because

Where SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree and SD-

Strongly Disagree

1 Provide better return to the customer
2 Brokerage charges are very less
3 Transparency of money to the customer
is high
4 Security of money is high
5 Easy to access online trading
6 No charges if you do share trading
7 Charge coupon strategy is good
8 Provide full satisfaction to the customer
9 Provide the information in easy and
better way
1 More careful for his customer