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COMPETITIVE Advantage of
trading in reliance money
PREPARED BY
Manaswini Mohanty
serial Page
no Topic no.
1 Certificate by Organization
2 Certificate by Faculty guide
3 Acknowledgement
4 Declaration
5 Executive Summary
6 Introduction and Review Of Literature
7 Company Profile
8 Competitors Of Reliance Money
9 Trading Portal
10 Research Methodology
11 Findings
12 Recommendations and Limitations
13 Conclusion
14 Bibliography
15 Annexure(Questionnaires)
16
17
DECLARATION
I, Ms MANASWINI MOHANTY, a student of ASIAN SCHOOL OF BUSINESS
MANAGEMENT , hereby declare that the project titled “COMPETITIVE
ADVANTAGE OF TRADING IN RELIANCE MONEY” is an original work
and has not been submitted to any other academic institution for award of any
degree or diploma in full or part by me.
MANASW
INI MOHANTY
DECLARATION
MANASWINI MOHANTY
PGPM/08-10/12
ACKNOWLEDGEMENT
I would like to thank my corporate guide Mr.Sudhansu Parida and all other staff of
Reliance Money for helping me in learning the lessons of professional
management. His able guidance and valuable inputs have helped me a lot in
successfully completing this project.
Introduction
SENSEX the benchmark indicator of share trading has more than tripled ever since
on line share trading commenced.it has become imperative to be a participant of
this mode of trading.
Share trading is a way of faster earning and losing money. In the recent years,a
volatile market could be witnessed. In the desire to earn money in a quick
manner,more and more people have ventured out into share trading. Lack of
awareness of many investors have made them loose lakhs of money in the stock
market. Wise plays by many others have made them earn in crores.
Electronic trading or online trading eliminates the need for physical trading
floors.brokers can trade from their offices,using fully automated screen based
processes. Their workstations are connected to a stock exchange’s central computer
via satellite using Very Small Aperture Terminus(VSATs). The orders placed by
brokers reach the exchange’s central computer and are matched electronically.
Stock exchange
The stock exchange provides companies with the facility to raise capital for
expansion through selling shares to the investing public.
When people draw their savings and invest in shares, it leads to a more rational
allocation of resources because funds, which could have been consumed, or kept in
idle deposits with banks are mobilized and redirected to promote business
activity with benefits for several economic growth and higher productivity
levels.
Redistribution of wealth
Corporate governance-
At the stock exchange , share prices rise and fall depending , largely , on market
forces. Share prices rise tend to rise or remain stable when companies and the
economy in general show signs of stability and growth .An economic recession ,
depression , or financial crisis could eventually lead to a stock market crash .
Therefore the movement of the general tend in the economy .The listing
requirements are the set of conditions imposed by a given stock exchange upon
companies that want to be listed on that exchange .Such conditions sometimes
include minimum number of shares outstanding , minimum market capitalization ,
and minimum annual income.
COMPANY PROFILE
Reliance money is a part of the reliance Anil Dhirubhai 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 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…..
These are the values that bind success with 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:
Equity
Reliance Money offers its clients competitively priced Equity broking, PMS and
Portfolio Advisory Services. Trading execution assistance provided to clients. In
addition Reliance Money provides independent and unbiased view on markets
along with trading strategies and entry / exit points for taking an informed
decision.
Mutual Funds
Reliance Money offers dedicated research & expert advice on Mutual Funds.
Mutual funds are considered to have low risk factors owing to diversification of
assets into various sectors and scripts or instruments within.
A mutual fund is a common pool of money into which investors place their
contributions that are to be invested in acoordance with a stated objective.Then
the ownership of the fund is just “joint” and “mutual”; the fund belongs to all
investors.
Insurance
Life-Insurance
Reliance Money assists its clients in choosing a customized plan which will secure
the family’s future and their expenses post-retirement. Clients can choose from
different plans of almost all Insurance Companies where they can invest their
money. Clients can choose from products and services that channelise their savings
and protect their needs while guaranteeing security and returns for life. A team of
experts will suggest the best Insurance scheme which suits the client’s requirement.
General Insurance
General Insurance is all about protecting against all kind of insurable risks.
Reliance Money assists you in areas of Health insurance, Travel insurance, Home
insurance and Motor insurance.
Commodities
A single platform to trade on both the major commodity exchanges i.e. NCDEX
and MCX. In addition In-house research desk shall provide research reports on all
major commodities which shall enable in getting views for trading and diversify
client’s holdings. Trade Execution assistance is also provided to clients.
Tax Planning
Property Valuation
Offshore Investments
1. Demat account
2. Mutual funds
3. Life insurance
With the end of 8 weeks every phase was completed and it gave
us the real experience of retail as well as corporate world.
COMPETITORS OF RELIANCE MONEY:
Reliance Money serves a vast range of all financial products like advisory
services, Mutual funds, Demat Accounts, Insurances, Gold etc, so all the
companies who offer these services are the competitors of the Reliance Money.
There are many competitors for Reliance Money on this basis and almost all of
them offer the services which Reliance Money offers.
• India bulls
India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the
Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The
India Infoline group, comprising the holding company, India Infoline Ltd and its
subsidiaries, straddles the entire financial services space with offerings ranging
from Equity research, Equities and derivatives trading, Commodities trading,
Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits and
other small savings instruments to loan products and Investment banking. India
Infoline also owns and manages the websites.
India Infoline Limited is listed on both the leading stock exchanges in India,
viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE)
and is also a member of both the exchanges. It is engaged in the businesses of
Equities broking, Wealth Advisory Services and Portfolio Management Services. It
offers broking services in the Cash and Derivatives segments of the NSE as well as
the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a
depository participant, providing a one-stop solution for clients trading in the
equities market. It has recently launched its Investment banking and Institutional
Broking business.
India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd,
which is engaged in the businesses of Equities broking and Portfolio Management
Services. It offers broking services in the Cash and Derivatives segments of the
NSE as well as the Cash segment of the BSE.
Fig (4)
Sharekhan Securities:
Sharekhan was created when SSKI Investor Services Pvt. Ltd., a company
in the securities and equities segment decided to harness the power of the Internet
and offer services to its customers through an online stock trading portal.
Sharekhan brings and provides a user-friendly online trading facility. They also
have an extensive all-India ground network of franchisees across the country.
The company offers its services through a combination of online and offline
channels. The online model comprises a portal, chat facilities, and 'speed trade'
terminals. And the offline model uses a combination of an IVR infrastructure and a
team of customer agents to receive orders over the telephone.
(www.sharekhan.com)
ICICI Securities;
ICICI Securities, A subsidiary of ICICI Bank, was set up in February 1993
to provide investment-banking services to investors in India. As on date ICICI
Bank holds 99.9% of the share capital of ICICI Securities.
ICICI Securities Limited is India’s leading full service investment bank with a
dominant position in all segments of its operations –
• Corporate Finance
• Fixed Income and
• Equities. (www.icicisecurities.com)
Kotak Securities:
Indiabulls:
PRODUCT
ICICI Kotak Motilal India
Companies Reliance Direct Religare Securities Oswal Bulls
Type of
product
Online
Services Equity
Cash
Intraday NSE Y Y Y Y Y Y
BSE Y N N Y N N
upo 20
times
(conditions
Intraday Margin 5 times 5 times applied) 4 times 5 4 to 7
Margin Super
Plus Multiple
Margin with -10 to -10 times
Stop Loss 12 exposure
order N times - in Cash - N
Other
Product - - - - -
Commodity Y Y Y Y N
IPO Y Y Y Y Y Y
Mutual
Funds Y Y Y Y Y N
Gold N N Y Y N
Forex N N Y N N
NRI
Trading Equity Y Y Y Y Y N
Derivative Y Y Y N N
Offline
Service PCG Y Y Y Y Y N
Forex Y N N N N N
ICICI Kotak Motilal
Companies Reliance Direct Religare Securities Oswal
Sources of
Business Franchisee Franchisee
Remissars Agents
Sales
BDE Manager
Branch Branch
Bank
Webworld Branches
Mode of
Trading Web Y Y Y Y Y
Kiosk Y N N N N
Call Center Y Y Y Y Y
Branch N Y N N
Channel
Partner Franchisee Franchisee N
Relationship
Manager N Y
Mode of
Customer
Handling Branch Y Y Y
Call Center Y Y Y Y Y
Relationship
Manager
Mapped Y Y Y Y
Other
Reliance
Mode of separate
Communication Email mail ID Y Y
Posts Cheque Y Y
Motilal
Companies Reliance ICICI Direct Religare Kotak Securities Oswal
Online
Retail Trading Portal
EASY -
R-ACE Pro Account with
(Basic)- static Quotes
Activation - Refresh
Equity Easy Trade Web based Charge Rs299 Fastlane option
R-ACE Pro
(Professional) KEAT - Premium
Activation (Coustomised to
Fast Trade Charge - Rs 999 need)
SMS
Send sms
after Trade
Execution Y Y Y Y
Mobile
Sevices Y Y - View N
Chat Services Y N N
TRADING PORTAL
DEMAT ACCOUNT
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 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 posses a Permanent
Account Number (PAN), and the deadline for submission of PAN
details to the depository lapsed on January 2007.
DEMAT ACCOUNT
There are many broking houses doing business in India and they
charge a brokerage on every transaction made online or offline.
(Buying and Selling are treated as separate transaction). Reliance
Money’s advantage over others is that it’s charging the lowest
brokerage in the market which is just 1 paisa on every executive trade
irrespective of the volume traded. Reliance Money, the brokerage and
distribution arm of Reliance ADA Group, aims to tap investors in the
smaller towns and cities through a flat fee structure. The current
leaders in the retail broking segment like ICICI Direct, India Infoline
and Indiabulls offer a ‘pay per use’ model where the customer pays a
percentage of the amount transacted by him. Reliance Money’s
brokerage rates are quite competitive.
The Rs1000 worth pre-paid card, total trading limit would reach
Rs 1 crore, of which Rs 90lakhs is for the non delivery segment and
Rs10 lakh for delivery-based activities.
RESEARCH METHEDOLOGY
Objective of research;
• The main objective of this project is concerned with getting the opinion of
people regarding demat account, Mutual Funds, Life Insurance and other
financial products, to target them and create awareness while with the
generation of leads.
• I have tried to explore the general opinion about the products and services
provided by Reliance Money.It also covers why/ why not investors are
availing the services of financial advisors.
The research was carried out in Cuttack 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:
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.
Sample size:
Sample design:
1. Preference of Investment
Interpretation: 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.
Interpretation: 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 market
60
50 50 50
40 40 40 40 40
30 30
20 20
10 10 10
0
Reliance kotak
ICICI dirct others
money mahindra
lower 10 20 30 50
Medium 40 40 30 40
High 50 40 40 10
INTERPRETATION: From the above graph I found that most of customer are
mostly risk taker and price conscious and least number of customer are quality
conscious and variety seeker. It suggests that the customer are ready to invest
money in equity and commodity market which is more risky than mutual fund.
14.Suggestions
INTERPRETATION:Most of the people suggested reliance
money to broaden their network so that it will be available to a
large number of people. Some others suggested on improving the
customer service whereas others laid emphasis on technical
improvement.
RECOMMENDATION
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.
• After sales services and follow up calls are important for getting new
references so trained telesales should be appointed for this purpose whose sole
work should be to make feedback calls.
• Reliance is having too many financial products right from Demat account to
General Insurance and not all the salespeople are familiar with each and every
product so the work force should be segregated each group dealing in a
specific product and the sales target should be given likewise.
• While interacting with the investors I found that most of the customers are
unaware about the Mutual fund. Some of the people look upon mutual funds
and equity trading as gambling. Thus a mutual fund awareness program can
help to increase the penetration of mutual funds in the market.
• Reliance should declare in black ink that they will charge just 1 paisa per
transaction. People tend to think that there must be some hidden charges.
• Rs750 account opening charges are too high when targeting a corporate so the
company should be flexible on this amount.
• Reliance should provide periodic training for updating the product knowledge
of various financial advisors.
Books
Market Research ( Naresh Malhotra)
Websites:
o www.reliancemoney.com
o www.nseindia.com
o www.bseindia.com
o www.moneycontrol.com
o www.indiabulls.com
o www.investopedia.com
o www.scribd.com