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ON
IN PARTIAL FULFILMENT
OF
MS (Marketing)
FOR
MS (MARKETING)
Hyderabad
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ON
IN PARTIAL FULFILMENT
OF
MS(Marketing)
FOR
MS (MARKETING)
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Reliance money - Anil Dhirubhai Ambani Group offers most dynamic web based trading environment
to its customers .The Reliance Money stock trading websites uses special security features 'Security
Token', which makes you online trading experience more secure without complexity. Reliance ADG
provide the vast opportunities to the new aspirants of the business administration. The financial
Sector is full of competition even if there are a lot of opportunities to the job in Reliance Money and It
is the platform to go on the highest peak in the life of any coming one. Reliance Money is a single
window that provides the multisystem facilities of the financial Products. There are many companies
in the market which are providing the financial product like insurance, demat account services,
mutual funds, general insurance, Portfolio management services(PMS), wealth management, gold
coins, Money changing , Money Transfer, and the others.
Hence Reliance Money provides many financial products on the single window. Reliance money deals
with the product and Investment options are available in...
Derivatives Trading Special feature is available first time to track your positions online, in
real time.
Forex Trading
Commodity Trading
IPO's
Mutual Funds
Insurance
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It is a great opportunity for me to work with Reliance money, pioneers in the field of stock trading, a
part of Reliance Capital Ltd. I am extremely grateful to the entire team of Reliance Money at
Hyderabad who have shared their expertise and knowledge with me and without whom the
completion of this project would have been virtually impossible.
My sincere gratitude to Mr. Lalit Soni (Cluster Head, Hyderabad) for providing me with an
opportunity to work with Reliance Money Limited as a company project guide who has provided me
with the necessary information and his valuable suggestion and comments on bringing out this
report in the best possible way.
I am highly indebted to Mr. Ravinder Soni (Relationship Manager of Reliance Money) and company
project guide, who has provided me the necessary information and his valuable suggestion and a
good support in understanding the basics of the Reliance Money easily.
In this context, as a student of The ICFAI School of Marketing Studies, Hyderabad I would first of all
like to express my thank fullness to Dr. K.Randheer for assigning me such a worthwhile title
(Targeting and Positioning strategies of Financial Products/Services offered by Reliance Money)to
work upon in Reliance Money . I am also thankful to other associates (PFA) who had helped me in this
project.
I express my sincere gratitude to our Director Dr.T.R.K Rao and Dean Dr.K.Rajanath for allowing me
to carry on this project.
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1 ABSTRACT 6
11 QUESTIONNAIRE 65-66
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This project has been a great learning experience for me; at the same time it gave me
enough scope to implement my analytical ability. This project as a whole can be divided into
two parts:
The first part gives an insight about the mutual funds and its various aspects. It is
purely based on whatever I learned at Reliance Money. One can have a brief
knowledge about Mutual funds and all its basics through the project. Other than that
the real servings come when one moves ahead. Some of the most interesting
questions regarding mutual funds have been covered. Apart from Mutual Funds a
light has also been through on Life Insurance Policies.
All the topics have been covered in a very systematic way. The language has been
kept simple so that even a layman could understand. All the datas have been well
analyzed with the help of charts and graphs.
The second part consists of data and their analysis, collected through a survey done
on 200 people. It covers the topic” Awareness and Impact level among people about
Mutual Funds and Life Insurance Policies”. The data collected has been well
organized and presented. Hope the research findings and conclusions will be of use.
It has also covered why people don’t want to go in invest? The advisors can take
further steps to approach more and more people and indulge them for taking their
advices.
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The scope of the study refers to the job that to know about the activities of the organization.
The study means that the analysis of the products of the company on which he/she has to
focus.
During the MSP days the volunteer need to find out the corporate strategies of the running
company and the mile stone which the company has covered during its journey. In the
summer training, it is necessary for the student that he /she involve with the experience
guys to get the knowledge about the company. That is how the company has got the
success, Or if it is going in the loss, why.
During this MSP period I have found that the reliance group is the biggest group in Indian
companies. I felt that I can learn the more in the Reliance Money and Reliance Mutual Fund.
Reliance Money and Reliance Mutual fund is the part of the Reliance Capital Limited which is
a growing company in the financial products.
Reliance Anil Dhirubhai Ambani group is also deals in communication, energy, natural
resources, media, and entertainment, healthcare and infrastructure.
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Small Cities (tier 2, tier 3 cities) though it already has a great recognition tier-1
cities and metros.
Moreover the company is very much focused on doing business at Retail level as
the collaboration of R-Money with STIC travel group is a live example of it.
Last but not the least the company is offering financial products and services
which are very required by the common people so its target population is
differential SEC (SPECIAL ECONOMIC CLASSES) on the basis of various
Demographics, Income groups, Occupation, etc.
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Positioning is the next step after Targeting. Here for this purpose Reliance Money has done
various activities (like as some of which are done in their promotional activities) some of
which are;
it shows that “Yes we are something Different “and this is also perceived
and positioned in the minds of the consumer.
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A bundle of hundred rupee notes, a huge chain with a sizeable padlock and a few words
were quite enough for the ADAG led Reliance Mutual Funds to unlock its ideas before its
target group. A large safe kept at suburban railways stations in Mumbai grabbed just the
right eyeballs and pamphlets educating the consumer added to the impact of the campaign.
The outdoor campaign that was launched in Mumbai adopted a disruptive method to
communicate its message to investors. Hoardings sporting bundles of hundred rupee notes
that were chained and locked were set up at important locations such as Mahim, Bandra
Kurla Complex and Worli. The tagline read: ‘Unlock your money’s potential’. It was a clear
call to investors who store their money in fixed deposit schemes and other less productive
options.An extensive and expansive outdoor campaign was conducted by Reliance with this
latest strategy. The campaign included ground level activities at crowded public places and
micro marketing. The creative idea is a collaborative brain child of Reliance and 141 Sercon.
Vikrant Gugnani, president, Reliance Mutual Funds, says, “We wanted to create awareness
among the investing populace.”
By way of brief, Reliance told the agency that it wanted a disruptive way of targeting
investors. The disruption is in the form of standing out starkly and being noticed as a better
option to just banking.
Gugnani continues, “The objective was to bring to people’s attention that instead of money
lying idle in the bank, one could invest it wisely in mutual funds.”
The on-ground campaign had a large safe deposit box, which ran the same positioning line
as the hoarding. The safe deposit box was strategically placed at crowded places such as
railway stations, bus stops and car parks. Road shows and a moving billboard were also part
of the campaign. Pamphlets were distributed at the venues to educate prospective investors
about Reliance’s various systematic investment plans.
The campaign has been carried out only in Mumbai as of now. Plans to launch it in other
metros such as Delhi, Bangalore and Kolkata have been voiced. Smaller cities such as
Chandigarh, Vadodara, Nasik and Guwahati are also on the list. There are also other
campaigns in the offing, which will be released soon. So from the above example it is clear
that the company always do something unique to attract people.
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Reliance Capital
Reliance
Reliance Reliance Reliance Reliance
Consumer
General Insurance Life Insurance Money
Mutual fund Finance
Reliance money is a part of the reliance Anil Dhirubhai Ambani Group and is promoted by
Mutual Fund
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.
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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.
These are the values that bind success with Reliance Money.
Mission statement:
“Our mission is to be a leading and preferred service provider to our
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Mutual Funds
A mutual fund is a professionally managed fund of collective investments that collects money from
many investors and puts it in stocks, bonds, short-term money market instruments, and/or other
securities.
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.
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.
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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
With a view to provide complete wealth management solutions, Reliance Money’s wealth
management offerings include tax related services like:
Tax Planning & advisory
Filing Tax returns for individuals
Offshore Investments
Reliance Money provides a unique opportunity to invest in international financial markets through
the online platform which includes different product ranges.
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Like most developed and developing countries the mutual fund cult has been catching on
in India. There are various reasons for this. Mutual funds make it easy and less costly for investors
to satisfy their need for capital growth, income and/or income preservation.
And in addition to this a mutual fund brings the benefits of diversification and money
management to the individual investor, providing an opportunity for financial success that was
once available only to a select few.
Understanding Mutual funds is easy as it's such a simple concept: a mutual fund is a
company that pools the money of many investors -- its shareholders -- to invest in a variety of
different securities. Investments may be in stocks, bonds, money market securities or some
combination of these. Those securities are professionally managed on behalf of the shareholders,
and each investor holds a pro rata share of the portfolio -- entitled to any profits when the
securities are sold, but subject to any losses in value as well.
For the individual investor, mutual funds provide the benefit of having someone else
manage your investments and diversify your money over many different securities that may not be
available or affordable to you otherwise. Today, minimum investment requirements on many
funds are low enough that even the smallest investor can get started in mutual funds.
A mutual fund, by its very nature, is diversified -- its assets are invested in many different
securities. Beyond that, there are many different types of mutual funds with different objectives
and levels of growth potential, furthering your chances to diversify.
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A mutual fund is a common pool of money into which investors place their contributions that are
to be invested in accordance with a stated objective. The ownership of the fund is thus ‘joint’ and
‘mutual’; the fund belongs to all investors.
In the past decade, Indian mutual fund industry had seen a dramatic improvement, both quality
wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase, the
Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund family raised
the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of 1,540 bn.
Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than
the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking
industry.
The main reason of its poor growth is that the mutual fund industry in India is new in the country.
Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the
prime responsibility of all mutual fund companies, to market the product correctly abreast of
selling.
The mutual fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.
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Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first
scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of
assets under management.
Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can bank Mutual
Fund(Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89),
Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in 1990. The
end of 1993 marked Rs.47, 004 as assets under management.
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in
which the first Mutual Fund Regulations came into being, under which all mutual funds, except
UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin
Templeton) was the first private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised
Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)
Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds setting up
funds in India and also the industry has witnessed several mergers and acquisitions. As at the end
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This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the
Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores (as on January
2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with
SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI
which had in March 2000 more than Rs.76, 000 crores of AUM and with the setting up of a UTI
Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered its current phase
of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage
assets of Rs.153108 crores under 421 schemes.
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Note:
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit
Trust of India effective from February 2003. The Assets under management of the Specified
Undertaking of the Unit Trust of India has therefore been excluded from the total assets of the
industry as a whole from February 2003 onwards.
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.
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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.
ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee (India) Pvt. Ltd. as
the Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd. was incorporated on
November 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund.
Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. Sun
Life Financial is a global organization evolved in 1871 and is being represented in Canada, the US,
the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life Mutual Fund
follows a conservative long-term approach to investment. Recently it crossed AUM of Rs. 10,000
crores.
Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under the
sponsorship of Bank of Baroda. BOB Asset Management Company Limited is the AMC of BOB
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HDFC Mutual Fund was setup on June 30, 2000 with two sponsorers namely Housing Development
Finance Corporation Limited and Standard Life Investments Limited.
HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital Markets (India)
Private Limited as the sponsor. Board of Trustees, HSBC Mutual Fund acts as the Trustee Company
of HSBC Mutual Fund.
ING Vysya Mutual Fund was setup on February 11, 1999 with the same named Trustee Company. It
is a joint venture of Vysya and ING. The AMC, ING Investment Management (India) Pvt. Ltd. was
incorporated on April 6, 1998.
The mutual fund of ICICI is a joint venture with Prudential Plc. of America, one of the largest life
insurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13th of October,
1993 with two sponsorers, Prudential Plc. and ICICI Ltd. The Trustee Company formed is
Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company Limited
Incorporated on 22nd of June, 1993.
Sahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial Corporation Ltd. as
the sponsor. Sahara Asset Management Company Private Limited incorporated on August 31,
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State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshor fund,
the India Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the largest Bank
sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15 have
already yielded handsome returns to investors. State Bank of India Mutual Fund has more than Rs.
5,500 Crores as AUM. Now it has an investor base of over 8 Lakhs spread over 18 schemes.
Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsorers for Tata
Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manager is
Tata Asset Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset
Management Limited's is one of the fastest in the country with more than Rs. 7,703 crores (as on
April 30, 2005) of AUM.
UTI Asset Management Company Private Limited, established in Jan 14, 2003, manages the UTI
Mutual Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management
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Standard Chartered Mutual Fund was set up on March 13, 2000 sponsored by Standard Chartered
Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset
Management Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December
20,1999.
The group, Franklin Templeton Investments is a California (USA) based company with a global
AUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups in the
world. Investors can buy or sell the Mutual Fund through their financial advisor or through mail or
through their website. They have Open end Diversified Equity schemes, Open end Sector Equity
schemes, Open end Hybrid schemes, Open end Tax Saving schemes, Open end Income and Liquid
schemes, Closed end Income schemes and Open end Fund of Funds schemes to offer.
Morgan Stanley is a worldwide financial services company and it’s leading in the market in
securities, investment management and credit services. Morgan Stanley Investment Management
(MISM) was established in the year 1975. It provides customized asset management services and
products to governments, corporations, pension funds and non-profit organizations. Its services
are also extended to high net worth individuals and retail investors. In India it is known as Morgan
Stanley Investment Management Private Limited (MSIM India) and its AMC is Morgan Stanley
Mutual Fund (MSMF). This is the first close end diversified equity scheme serving the needs of
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Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its sponsor. The
Trustee Company is Escorts Investment Trust Limited. It’s AMC was incorporated on December 1,
1995 with the name Escorts Asset Management Limited.
Alliance Capital Mutual Fund was setup on December 30, 1994 with Alliance Capital Management
Corp. of Delaware (USA) as sponsored. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the
Alliance Capital Asset Management India (Pvt) Ltd. with the corporate office in Mumbai.
Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt. Ltd. as the
sponsored and Benchmark Trustee Company Pvt. Ltd. as the Trustee Company. Incorporated on
October 16, 2000 and headquartered in Mumbai, Benchmark Asset Management Company Pvt.
Ltd. is the AMC.
Canbank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as the sponsor.
Canbank Investment Management Services Ltd. incorporated on March 2, 1993 is the AMC. The
Corporate Office of the AMC is in Mumbai.
Chola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance Company Ltd.
was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is
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Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed Rs. 2
Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in accordance
with the provisions of the Indian Trust Act, 1882. . The Company started its business on 29th April
1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management
Company Ltd as the Investment Managers for LIC Mutual Fund.
GIC Mutual Fund, sponsored by General Insurance Corporation of India (GIC), a Government of
India undertaking and the four Public Sector General Insurance Companies
, viz. National Insurance Co. Ltd (NIC), The New India Assurance Co. Ltd. (NIA), The Oriental
Insurance Co. Ltd (OIC) and United India Insurance Co. Ltd. (UII) and is constituted as a Trust in
accordance with the provisions of the Indian Trusts Act, 1882.
The annual composite rate of growth is expected 13.4% during the rest of the decade. In the last 5
years we have seen annual growth rate of 9%. According to the current growth rate, by year 2010,
mutual fund assets will be double.
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Mar-
Month/Year Mar-98 Mar-00 Mar-01 Mar-02 Mar-03 Sep-04 4-Dec
04
Source - RBI
Source - AMFI
Number of foreign AMC’s is in the queue to enter the Indian markets like Fidelity
Investments, US based, with over US$1trillion assets under management worldwide.
Our saving rate is over 23%, highest in the world. Only channelizing these savings in
mutual funds sector is required.
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'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing cities.
Mutual fund can penetrate rural like the Indian insurance industry with simple and limited
products.
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Investing in mutual has various benefits, which makes it an ideal investment avenue.
Following are some of the primary benefits:
One of the primary benefits of mutual funds is that an investor has access to professional
management. A good investment manager is certainly worth the fees you will pay. Good mutual
fund managers with an excellent research team can do a better job of monitoring the companies
they have chosen to invest in than you can, unless you have time to spend on researching the
companies you select for your portfolio. That is because Mutual funds hire full-time, high-level
investment professionals.
Funds can afford to do so as they manage large pools of money. The managers have real-
time access to crucial market information and are able to execute trades on the largest and most
cost-effective scale. When you buy a mutual fund, the primary asset you are buying is the manager,
who will be controlling which assets are chosen to meet the funds' stated investment objectives.
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.
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Sector Funds
Diversified Equity
R Funds
e Balanced Funds
MIPs
t
Gilt Funds
u
Income Funds
r
Floaters
n
Money Market Funds
s
Risk
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Lump Sum
Systematic Investment Plan(SIP)
Lump sum: In Lump sum the investment is only one times that
is of Rs. 5,000. and if the investment is monthly then the investment will be 6,000/-.
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.
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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.
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.
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Transparency
Flexibility
Choice of schemes
Tax benefits
Well regulated
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.
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An amount of money paid to someone (called beneficiary) when the Life Assured (in whose name
the insurance policy is taken) dies. This amount can be used to pay the expenses related to Life
assureds death or can be invested to generate income that will replace your salary. Life Insurance
is an important tool in any investors portfolio & can be used for - wealth creation, asset building,
provide for contingencies and retirement planning.
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Plans of insurance that provide only death cover are called “Term Assurance” Plans.
Plans of insurance that provide only survival benefits are called “Pure Endowment”
Plans
Term Life Insurance provides protection for a specified period of time. A death benefit is paid to
the beneficiary if the insured dies within a specified period of time while the policy is still in force.
Whole Life insurance is a permanent life insurance and provides protection for life. As long as
premiums are paid, a death benefit is paid to the beneficiary.
ULIPs
A ULIP is a life insurance which provides a combination of Life Insurance protection and
investment. Money can be invested in the following fund:- Equity Fund, Debt Fund, Money Market
Fund (Liquid Fund) and Balance Fund.
Annuities
Annuities are practically the same as pension. Pension provides periodical payments to the
employees, who have retired. They are paid as long as the recipient is alive. Annuities are
called the “reverse” of Life Insurance.
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Protection Plans
Protects family even when you’re not around by investing in Reliance Protection Plans. Choose a
limited period plan or a lifetime protection plan depending on your needs. The latest Protection
Plans are as below…
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Retirement Plans
Invest today in Reliance Retirement Plans and save money to enjoy life even after retirement. You
will never have to depend on another person or make any compromises to maintain your current
lifestyle. The latest Retirement Plans are as below…
Child Plans
Save systematically and secure your child’s future needs by investing in Reliance Child Plans. You
can always be there for your child when he or she needs you. The Childs plans are as below…
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Under This plan the investment risk in the investment portfolio is borne by the policyholder.
key features
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During the MSP period of 3 month i.e. from 24th July to 24th October I have gone through
various stages Job role. I was basically given the work to Target various Consumer Groups,
Markets and Different Organizations to whom and where the company can pitch its
differential financial products/services as well as to create Awareness about the company
and its offerings in the regard to Promote which create a Position in minds of the consumer.
Moreover I was given some training classes about Mutual funds and Life Insurance.
I have worked for two financial product/service offered by R-Money which are
MUTUAL FUND
Basically)
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1. Age Factor: I segmented people as per 3 age criteria which are , (25—35)years
2. Education Level
According to the parameters taken above I have targeted people in various places of
Hyderabad like, Banjara Hills, Begum pet, Balanagar, Punjagutta , Somajiguda,
Erramanzil, Himayat Nagar, Ameerpet, Yellariguda for creating awareness and
position of Mutual Funds and Life Insuarances offered by R-Money. Moreover this
process also lead to the work of Lead Generation for the company and which could
also be used by me for cross selling of the products/services to them.
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The post tax returns are higher as compared to the other avenues.
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18-25
couples
with no
Couples with
children •Matured
couple Retired
(Unmarried) kids
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Term
Endowment
Annuity
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This very journal is basically an interview which is done by Patrick Crogan to Samuel Weber.
The title is Targeting, Television and Networking: An Interview with Samuel Weber.
Here a light is thrown on various aspects by the interviewee on the targeting, media and
networking.
According to him;
The ‘target’ is someone who doesn’t fit the usual criteria. So one don’t have the same kind of search
procedures as in the normal hiring process. The target of opportunity can be a function of
affirmative action policy or be somebody whose qualifications are unusual enough that one would
not find them with a regular search process following criteria peculiar to an individual discipline.
On the one hand the association of targeting with the aim of controlling the future, controlling the
environment by identifying a target, localizing it and hitting it or reaching it, depending on what
area a person is in, and on the other hand the notion of opportunity, which suggests the
unpredictable emergence of an event that can’t be entirely planned. The coupling of the two terms
suggests that targeting, rather than just designating an abstract activity in which, unencumbered
by constraints of time and space, he identify something that he/she wants to accomplish or goals
to be reach and then everything is done to achieve that, involves responding in a very determinate
situation spatially and temporally to an unpredicted, unforeseen event, trying to get that event in
some sense under control.
The word ‘opportunity’ itself is interesting because it already condenses this idea of the
unpredictable, singular event being turned into an occasion to do something else. An opportunity
means precisely to be able to do something with the event. Quite literally, the word suggests a
portal, op-port-unity; a gateway through which one can pass into another domain. The latter can
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Overall, the journal speaks about concept of targeting and opportunities in common.
Though the real methodology is not been specified to do targeting but the concepts it has
Discussed are really helpful for one who wants to do a project on targeting.
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The journal speaks out the combination of culture and psychology in the regard of Positioning, i.e.;
how these both play a vital role while understanding the concept of positioning. The author has tried
to clear the concept of positioning through Accounting for Redemption and Reconcialition.
Reconciliation is a ubiquitous social phenomenon, woven into the fabric of social lives, and is
emblematic of the human condition. It ranges from inter-personal relationships observed in everyday
life to a wider social context of business, economics, politics, government, international relations and
diplomacy.
Here positioning theory to the analysis has been applied in order to understand the nature of the
experience of reconciliation—what it is to remember the problematic past and what it is to be
reconciled with it. Harré and Van Langehove note that there are three ways of expressing and
experiencing one’s personal identity or unique selfhood (Harré & van Langenhove, 1991; van
Langenhove & Harré, 1993). They are by stressing one’s agency in claiming responsibility for some
action; by indexing one’s statements with the point of view one has on their relevant world; or by
presenting a description/evaluation of some past event or episode as a contribution to one’s
biography. I will show in the following analysis of an extract how such indexing and marking of one’s
agency are empirically observed in the redemption narrative.
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Positioning is a metaphor for oscillating subjectivity located in time and place/space. The utterance is
indexed with his or her spatial and temporal location, and as a claim about a state of affairs it is
indexed with its speaker’s moral standing (Harré & van Langenhove, 1991, 1999). Such indexing
allows us to look at the ways in which a speaker takes responsibility for the reliability of his or her
claim. A discourse produced in the interview is not treated as the single account representing the
truth. The discursive act of positioning thus involves a reconstructive element: the biographies of the
one being positioned and the ‘positions’ may be subject to rhetorical redescriptions (van Langenhove
& Harré, 1993). The question, then, is to examine how this ‘rewriting’ is understood with regard to
personal identity and selfhood (van Langenhove & Harré, 1993, p. 85).
As in recent work exemplified in critical and discursive psychology, positioning does not assume a
stable, fixed identity or individual state of mind, but is situated in discursive practices. Positioning
indeed strikes a chord with this view of multiple, unfixed, fleeing and dynamic identity. Yet, van
Langenhove and Harré identify that ‘[t]here seems to be a tension between the multiplicity of selves
as expressed in discursive practices and the fact that across these discursive practices a relatively
stable self-hood exists as well’.
Overall all the concepts dealing with the understanding of positioning has been systematically and
beautifully analyzed that even a layman could gain the knowledge. Hence, this article is indeed a
perfect help material for a project.
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Objective of research;
The main objective of this project is concerned with getting the opinion of people
regarding Mutual Funds and Life Insurance , to target them and create awareness
while with the generation of leads.
I have tried to explore the general opinion about Mutual Funds and Life Insurance.
It also covers why/ why not investors are availing the services of financial advisors.
The research was carried on in the Southern Region of India. It is restricted to Hyderabad.
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.
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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. The data has been analyzed by using the measures of central tendencies like
Mean, median, mode. The group has been selected and the analysis has been done on the
basis statistical tools available.
Sample size:
The sample size of my project is limited to 200 only. Out of which only 135 people
attempted all the questions. Other 65 not investing in MFs and don’t have a Life Insurance
policy attempted only 2 questions.
Sample design:
Data has been presented with the help of bar graph, pie charts, line graphs etc.
Hypothesis:
H0: Targeting and Positioning Strategy based on investment in Mutual Fund and
Life Insurances is significant.
Limitation:
Time limitation.
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Data Analysis
1.
Null Hypothesis: The opinion of customers for all positioning factors is Similar.
Alternative Hypothesis: The opinion of customers for all positioning Factors is not
similar.
Result: The test results show that, the opinion of customers for all positioning factors is
similar and can be considered to be true representative of the population.
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YES 135
NO 65
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Totally ignorant 28
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Diversification 42
Professional management 29
Reduction in risk and transaction cost 34
Helps in achieving long term goal 30
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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, 135 (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 65 are not interested in doing either of it. So
there is enough scope for the company to target those 65 participants (32.5%) to
convert them into investors through their convincing power and great
communication skills.
Now, when those 65 people were asked about the reason of not investing in mutual
funds or taking an Insurance policy, then most of the people held their ignorance
responsible for that. They lacked knowledge and information about the mutual funds
and were confused due to various Insurance policies available in the market.
Whereas just 10 people enjoyed investing in other option. For 18 people, the benefits
arousing from these investments were not enough to drive them for investment in
MFs and Insurance and 12 people expressed no trust over the fund managers’
decision and the company. Again the financial advisors of the company can tap upon
these people by educating them about mutual funds and create trust regarding the
investment in an Insurance policy.
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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.
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The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should be made
to realize that ignorance is no longer bliss and what they are losing by not investing.
Mutual funds and Insurance policies offer a lot of benefit which no other single option could
offer. But most of the people are not even aware of what actually a mutual fund is and
moreover they are still unaware of the combination of Mutual Fund + Insurance Policy, i.e.
SIP+INSURE PLAN. They only see it as just another investment option. So the advisors should
try to change their mindsets. The advisors should target for more and more young investors.
Young investors as well as persons at the height of their career would like to go for advisors
due to lack of expertise and time.
The advisors may try to highlight some of the value added benefits of MFs such as tax
benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these benefits
are not offered by other options single handedly. So these are enough to drive the investors
towards mutual funds. Investors could also try to increase the spectrum of services offered.
Now the most important reason for not availing the services of advisors was spotted was
being expensive. The advisors should try to charge a nominal fee at the beginning. But if not
possible then they could go for offering more services and benefits at the existing rate. They
should also maintain their decency and follow the code of ethics so that the investors could
trust upon them. Thus the advisors should try to attract more and more persons and turn
them into investors and finally their clients.
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Name :
Age :
Income per annum :
Gender :
Occupation :
Contact No :
Have you invested /are you interested to invest in mutual funds or to take an
Insurance policy?
What is the most important reason for not investing in mutual funds and in
Insurance policies?
Where do you find yourself as a mutual fund investor/an insurance policy owner?
Totally ignorant [ ]
Fully aware [ ]
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Brokers only [ ]
Brokers/ sub-brokers [ ]
Other sources [ ]
Diversification [ ]
Professional management [ ]
According to you which are the most suitable stage to invest in mutual funds/take
an Insurance policy?
Pre-retirement stage [ ]
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Consumer Behavior
Websites:
www.reliancemoney.com
www.mutualfundsindia.com
www.valueresearchonline.com
www.moneycontrol.com
www.morningstar.com
www.yahoofinance.com
www.theeconomictimes.com
www.rediffmoney.com
www.bseindia.com
www.nseindia.com
www.investopedia.com
www.scribd.com
www.online.sagepub.com
www.google.com
www.reliancemoney.co.in
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