Summer Training Report

On

General Awareness Of Life Insurance & Demat Account Of

Reliance Money

Report Submitted In Partial Fulfillment Of Bachelor Of business

Administration

Under the Guidance Under the supervision of

Mr. S. K. Mishra Mr. Sanjeev Gupta
(Center Head)
Submitted By
Saurabh Sharma
BBA(2007-10)

1
 ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to various people who have shared
their valuable time and made possible this project, through their direct indirect cooperation.

I would like to thank my corporate guide Mr. Sanjeev Gupta Central Head of Reliance
Money for helping mein learning the lessons of professional management. His able
guidance and valuable inputs have helped me a lot in successfully completing this
project.

I thank my respected sir, Mr. S. K. Mishra & colleagues, who help me in every possible
ways, support me and encouraged me to explore new dimensions

This acknowledgement would not be completed without extending my thanks to my

friends, who did their summer internship along with me at Reliance Money Ltd, who
helped me clear any doubts that arose during my internship and for extending their
support to me during my period of internship.

2
 DECLARATION

I, Saurabh Sharma, a student of Mangalmay Institute Of Management & Technology

hereby declare that the project titled “General Awareness Of Life Insurance & Demat
Account Of 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.

Saurabh Sharma
Roll No – 9921624

3
 EXECUTIVE SUMMARY

This report contains a detailed description of two months summer project titled “General
Awareness Of Life Insurance & Demat Account Of Reliance Money” for Reliance Money
Ltd.

This two months summer project was undertaken to aware people about Reliance Money ltd
& recruit the financial advisors. This report contain the various factor influencing the
purchasing behavior & people’s perception about private life insurance industry and
financial consultant as a carrier, the effect of brand awareness of Reliance Life insurance on
recruitment of financial advisors and the factors which can increase the conversion rate of
financial consultant

The conversion rate of financial consultant is very low because of reasons like
--Lack of faith of people in private life insurance company, fear of IRDA exam,
--People perceive this job as a very low profile job.

Some of the suggestion given by different people from different profile regarding payment
scheme, examination fee etc are given in details in my report in later proceedings and
though I know that all of this suggestion are not possible to be implemented but if few of
them Being incorporated can increase the conversion rate of financial Consultants from
those particular profile. But then also private life Industry is a growing industry and as
certain corrective measure are taken then the conversion rate can be improved because even
if someone takes this as a part time profession then also earning potential is huge. Also
one SWOT analysis is prepared.

4
 CONTENTS:

Serial Page
No Topic no.
Acknowledgement 1
Declaration 2
Executive Summary 3
Chapter 1. Introduction of Life Insurance 5
 About Insurance 5
 History of insurance 6
 History of Indian life insurance 6
 Types of insurance 13
 IRDA 17
 Major market players in the industry 18
Chapter 2. Introduction of Demat Account 19
Chapter 3. Objective of study 25
Chapter 4. Company Profile 26
Chapter 5. Competitors of Reliance Money 36
Chapter 6. Research Methodology 44
Chapter 7. Data Analysis 50
Chapter 8. Finding 62
Chapter 9. Recommendations 63
Chapter 10. Limitation 65
Chapter 11. Conclusion 66
2 Bibliography
Annexure

5
 CHAPTER-1

An Introduction To The Life Insurance

The advance of technology, the multiplicity of activities and are growing Interdependent
makes larger and larger disaster inevitable. Progress has put more people, more companies
at risk than ever before. Traffic multiplicities on road, in the air and at sea. The disaster
caused death or hardship for many more people and properties than those directly involved.
Defective goods can cause injury. Mistakes to happen and accident can kill employees and
general public.
The essence of insurance lies in the elimination uncertain risk of loss for the individuals
through the combination of the large number of similarities expose individuals who
contribute to common fund premium payment sufficient to make the good loss caused to
any one individual. In all kind of insurance the fundamental principle is that one man agrees
to take the risk of another man’s life insurance business in consideration of certain small
payments, which are called premiums. The simplest and most general concepts of insurance
is a provisions made by a group of persons, each single in risk of some loss, the incidence
of which cannot be foreseen, that when such loss occurs at any of these, it shall be
distributed over the whole group.
“The quick pace of industrialization of the modern age has rendered man and his property
most vulnerable to the type of risk and uncertainties of life. “Thus, while uncertainties of
death, unemployment, sickness, are constantly starting at the face of a man, his properly
exposed to the risks arising from fire, water accident, windstorm, sea

perils, earthquakes, floods, dishonesty individuals from untimely death and to businessman
from these risks are too great to be calculated and indicate the importance of meeting them
in a planned manner. Local newspaper, negligence, etc. resulting from Acts of Gods. The
annual losses to repeal stories every day about financial losses. A father, twenty-five years
age dies, leaving being a wife and three children. Two thieves steal some priceless antiques
from a museum or temple. A bank is robbed of lacks of rupees in a broad-day light.

6
Who bears the financial burden of these losses? Who should now support the widow and
her children? Who is to replace the historical statue stolen from the museum? Who will
compensate the Department Store or a bank for the theft and robbery? In the absence of any
remedy or cooperative efforts concerned. But with the growth of the industrialized society
and consequently a rapid increase in the number of situations in which the human life and
property of these losses has been devised by shifting these risks to agencies or persons
willing or qualified to share them.

HISTORY OF INSURANCE

Insurance as we know it today owes its existences to 17th century in ENGLAND where it
began taking shape in the Lloyd’s coffee house where merchants, ship owners and
underwriters met to discuss and transact business. The 1st stock company to get into the
business was started in ENGLAND in 1720. The year 1735 saw birth of 1 st insurance
company in American colonies in India. Insurance can be traced back to VEDAS. The rig
Vedas suggests the existence of some form of community insurance prevalent among the
Aryans in around 1000 b.c.

HISTORY OF LIFE INSURANCE IN INDIA

The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.1956: 245 Indian and foreign

7
insurers and provident societies taken over by the central government and nationalized. LIC
formed by an Act of Parliament, viz. LIC Act,

1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850
in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes
of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.

DEFINITION OF INSURANCE

Since man’s life is open to risks of various kinds and degrees, which involve exposure to
losses, a scheme for dealing with some of these risks has been devised. This known as
insurance.
“A form of cooperation through which all those who are subject to certain risks and losses
pool their resources to compensate those who really suffer a loss.”

Different authors have defined the term “Insurance differently:

8
Prof. D. S. Hansell: “ A social device providing financial compensation for the effect of
misfortune, the payments being made from the accumulated contributions of all parties
participating in the scheme.”

Dr. W. A. Dinsdale: “Insurance is a device for the transfer of risks of individual entities to
an insurer, who agrees for a consideration (called the Premium), to assume to a specified
extent losses suffered by the insured.

Prof. John H. Magee: “Insurance is a plan by which large number of people associate
themselves and transfer, to the shoulders of all shoulders of all, risks that attach to
individuals”.

BASIC DEFINITIONS

INSURANCE
The Insurance is a device for the transfer of risks of individual’s entities to insurer, who
agrees for a consideration (called premium), to assume to a specified extent losses suffered
by the insured. It is a legal contract of technical nature.

INSURER
The party, which agrees to pay money on the happening of a contingency, is known as
insure. Mostly the insurers are insurance companies.

INSURED
The party, who seeks protection against a particular risk and is entitled to receive money
from the insurer in the event of the happening of the stated contingency, is known as
insured.

POLICY
The documentation which contain the term and condition of the insurance contract is
termed as the insurance policy. The word policy has been derived from the Italian work
“POLIZZA” which means “a receipt”

9
PREMIUM
The amount, which is paid by the insured to the insurer as a consideration of the insurance
contract is know as premium. In simple words premium is the price of insurance.

INSURED AMOUNT
The amount for which the risk is insured is called the insured amount or policy money, or
face value of the policy.

LIFE INSURED
It means the person on the duration of whose life the insurance depends.

INSURABLE INTEREST
An insurable interest is an interest of such a nature that should the event insured against
takes place; the insured might suffer financial loss. If the happening of the event insured
against does not clause financial loss to the assured.

THE UTMOST GOOD FAITH

All contracts of insurance are contract of the utmost good faith that is they require that
highest degree of good faith on the part of both the insured and the insurer.

INDEMNITY
Indemnity is the compensation for loss. Except in personal insurance the insurer contract to
indemnity the assured for what he actually losses by the happening of the events insured
against. In no case, the insured is entitled to make a profit out of his loss.
HAZARD
Hazard may be defined as a condition that may create, decrease or increase the chance of
loss from a given peril. Insurance3 companies are concerned with two types of hazard.

RISK
Risk means uncertainty loss and not the loss itself or the cause of loss. If for example, the
chance of loss by fire to a particular type of residential house is 1 in 1000. a person who

10
owns a single house cannot predict his loss either his flat will burn or will not burn. He has
no basis for predicting the outcomes.

DEGREE Of RISK
The accuracy with which a given loss can be predicted is known as degree of risk. It is
measured by the measured by the probable variation of actual experience from expected
experience. The lower the probable percentage of variation, the smaller is the risk. This
percentage variation decreases as the number of exposures increases.
CHANCE OF LOSS
The probable number of times in any given number of exposures that loss will occurs. That
highest chance of loss is at 100 percent. When the degree of risk is at zero and when the
chance of loss is zero, the degree of risk is also zero.

REINSURANCE
As with all words where “re” is added at the beginning of a word to add or change it’s
meaning, there is a hint that something is repeated. Hence, reinsurance means the insuring
again by the insurer of a risk already insured. In other words reinsurance is an agreement
between two or more insurance companies by risk of loss is proportioned. I.e., the risk of
loss is spread and a disproportionately large loss under a single policy does not fall on the
shoulders of one company.

DOUBLE INSURANCE
Double insurance implies that the same subject matter of insurance has been insured twice
either with two different companies or with the same company under two policies. In case
of indemnity contracts like fire and marine insurance, when the same subject matter has
been insured with more than one insurer, the insured can claim his loss from each of the
insurers, but the total claim can, in no case, exceed the amount of actual loss or the total
insured value in the aggregate, whichever will be smaller. Each insurer is bound to
contribute ratably to the loss in production to the amount for which he is liable

11
under the contract, and as such, if any one insurer pays more than his legitimate share, he is
entitled to a contribution from the other insurers. The insured will not be entitled to benefit
from over-insurance.
The question of double insurance does not arise in the case of life assurance, which is not a
contract of indemnity. A person can always take as many policies as one like up to any
amount, and the amount on all the policies can be realized on their maturity. However,
incase of indemnity contracts (fire, marine, property) double insurance is adopted by the
insured only in those cases where the financial soundness of the insurers is doubtful. From
the security point of view, therefore, a person can insure his property with any number of
insurance companies, for the total value of the property, but in case of loss, the insured
cannot recover more than the actual loss or the insured sum. The co-insurers. Will bear the
losses proportionately, though the inured can recover his loss from any of the insurers
according to his preference.
WHY LIFE INSURANCE?
ELEMENTS OF PROTECTION AND INVESTMENT
The chief peculiarity of life insurance is that it combines those elements of protection as
well as of investment. There is no other form of economic device, which involves both the
elements of protection and investment so well. The purchaser of a life insurance policy is
usually interested in protecting against risk pf premature death as well as in saving and
investing his income on a long term basis.

Life insurance, where the insurance company promises to pay a certain sum either on the
happening of death of the insured or his attaining a certain age. In both the cases, the sum
assured in bound to be recoverable. Thus, life insurance possesses the elements of
protection as well investment. Let us discuss the two points of protection and investment
separately.
ELEMENTS OF PROTECTION
First we take the element of protection. Protection literally means “keeping safe from
danger enemies”. In its modern form, the life insurance provides protection against the risk
of early death. Thus if a person dies before the policy matures for payment, life assurance
undertakes to pay the promised sum to the representatives and dependents of the deceased.

12
It, therefore, extend the hand of protection to those who are left without support and help
due to the sudden and premature death of their bread-winner.

ELEMENTS OF INVESTMENT
In addition, life insurance also covers the investment aspect, i.e., it is one of the best means
of saving for investment in future. In the old age, when a person’s earning capacity
depreciated considerably, the accumulated small sums provide economic stability in his
family life. The small sums paid to the insurance company by way of premium over long
period of 10 or 20 years grow in to large sum, which is a source of great confidence, I
oneself. In other words, if an insured person lives up t maturity of the policy, the insurance
company undertakes to replace income to him and to his dependents in the evening of life’s,
when one finds it too late in the days to struggle and work hard. This is due to the fact that
the insurance companies in various businesses and ventures invest the accumulated
premiums along with the compound interest. When the specified age is reached, the money
is paid back to the policyholder from the accumulated funds. This is the element of
investment, which is lacking in other forms of insurance, like fire, marine, accident.

Life insurance is superior to the other savings because of following.

PROTECTION:
where saving through life insurance guarantees full protection against risk of death of the
saver. In life insurance, on death, the full sum assured is payable (with bonus where ever
applicable) as in other saving schemes, only the amount saved (with interest) is payable.
AID OF THRIFT:
life insurance encourages ‘thrift’. Long-term savings can be made in a relatively “painless”
manner because of the “easy installment” facilities built into the schemes (method of paying
premium monthly, quarterly, half yearly or yearly).

LIQUIDITY: loans can be raised on the sold security of a policy which acquires loan
value. Besides a life insurance policy is also generally accepted as security for even a
commercial loan.

13
TAX RELIEF: tax relief in income tax and wealth tax is available for amounts paid by
way of premium for life insurance subject to income tax rates in force. Assesses can avail
themselves of provisions in the law for tax relief. In such cases assured in effect pays a
lower premium for his insurance than he would have to pay otherwise.
MONEY WHEN YOU NEED IT: a suitable insurance plan or a combination of different
plan can be taken out to meet specific need that are likely to arise in future, such as children
education, start a life insurance or marriage provision or even periodical needs for cash over
a stretch of time.
Apart from saving, the insurance field is fruitful for the employer’s point of view. Due to
penetration of private players in INDIAN insurance market the potential persons get more
option of employment here. This may be source of unlimited income in respect
COMMISSION
BONUS
INCENTIVES
GROWTH

14
TYPES OF INSURANCE

LIFE INSURANCE
Life Insurance is the most important and popular type of insurance whereby the Insurance
Company agrees to pay a specified sum of money to the insured, on the expiry of certain
period of time or on the death or the insured person, whichever is earlier. This kind of
Insurance, therefore, relieves the widow, children and other dependants of the hardships and
utter poverty, in case death of the breadwinner takes place, and includes health insurance
and inutilities.

FIRE INSURANCE
Fire insurance is a contract whereby the insurance undertakes to indemnify the insured
against any loss caused by fire to the property insured up to the extent agreed upon between
the insurer and the insured. This kind of insurance is taken by the owners of the factories
shops, cinema, houses, god owns and residential houses. In case of losses caused by fire,
they get compensation from the fire insurance company.

MARINE INSURANACE
Marine insurance is a contract whereby the insurer undertakes to indemnify the insured,
against risks of marine adventures, up to an agreed extent, mentioned in the policy. A
particulars ship along with its cargo on board may meet collision with sink in the sea. Such
risks, if not covered, will constitute a great obstacle to the international trade. Besides, it
also includes cargo and freight insurance. Marine insurance, therefore, helps shipping
companies and traders to insure their ships and cargo against risks of marine adventures.

MISCELLANEOUS INSURANCE
The miscellaneous form of insurance covers a number of risks such as:

Accident insurance
Workmen’s Compensation insurance
15
Motorcar insurance
Cattle insurance
Crop insurance
Public liabilities insurance etc.

INSURANCE MARKET

With such a large population and the untapped market area of this population insurance
happen to be a very big opportunity in India. Today it stands as a business growing at the
rate of 15 to 20% annually. Together with banking services it adds about 7% to the
countries GDP. In spite of all this growth the statistics of the penetration of the
Insurance in the country is very poor. Nearly 80% of Indian populations are without life
insurance cover and the health insurance. This is an indicator that growth potential for the
insurance sector is immense in India. It was due to this immense growth that the regulations
were introduced in the insurance sector the insurance sector in India has come a full circle
from being an open competitive market to nationalization and back to a liberalized market
again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn
witnessed over a period of almost two centuries.

As with any other market that for insurance consist of

Buyers
Sellers
Intermediaries

THE BUYERS
The buyers of the insurance or the insuring public include every one who requires
insurance. Buyers can be divided into four sections. Firstly, there are private individuals
who buy life insurance policies, household insurance on buildings, cars and scooters,
personal liability and accident policies. Secondly, there are persons who buy industrial life
assurance, which appeals to the wage-earners (as distinct from the salaried class) or the
lower income members of the community. Thirdly, there are buyers who seek insurance

16
with Lloyd’s underwriters, through Lloyd’s brokers. Finally, the rest of the buyers comprise
all persons, association, Firm joint stock companies, cooperation, societies, clubs,
government, and under taking engaged in industry, trade and every other king of activity.
THE SELLERS
Then there are sellers of insurance who are known as insurers, and have huge overseas
connections besides their home business. Insurers my be divided into several groups,
according to their constitution. The principal groups are:
Proprietary companies (Joint Stock Companies)
Mutual insurers
Cooperative Societies
Lloyd’s underwriters
Self-insurers
Collecting friendly societies
State insurance

THE INTERMEDIATE

Like any other market, the intermediate bring the buyers& sellers together but it is possible
to approach an insurance company directly & arrange insurance counter, except in case of
Lloyd’s. Generally the business of insurance is sold by agent or middle man to call at the
homes of the would be policy holders.

The principle groups of intermediaries are

Industrial life assurance agent

insurance agent
insurance broker
Lloyd’s broker

17
The Insurance Regulatory and Development Authority

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a
Statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations
and registering the private sector insurance companies. The other decisions taken
simultaneously to provide the supporting systems to the insurance sector and in particular
the life insurance companies was the launch of the IRDA’s online service for issue and
renewal of licenses to agents. The approval of institutions for imparting training to agents
has also ensured that the insurance companies would have a trained workforce of insurance
agents in place to sell their products, which are expected to be introduced by early next
year. Since being set up as an independent statutory body the IRDA has put in a framework
of globally Compatible regulations. In the private sector 13 life insurance and 6 general
insurance companies have been registered.

18
Major Market Players At A Glance

♣ Reliance Life Ltd.

♣ Bajaj Allianz
♣ ICICI Prudential Insurance
♣ HDFC Standard Life Insurance
♣ TATA Aig
♣ SBI Life
♣ Max New York
♣ Met Life
♣ Birla Sun Life
♣ Life Insurance Corporation
♣ Aviva
♣ Kotak Mahindra Old Mutual
♣ ING Vyasya
♣ Shriram Life
♣ Sahara Life

19
 CHAPTER-2

ABOUT DEMAT ACCOUNT

Reliance Money, A Reliance Capital Limited Company, is the financial services division of
Reliance Anil Dhirubhai Ambani (ADA) Group. Reliance ADA group is among top 3
business houses in India with wide range of presence across various sectors. Group’s major
interests ranges from communications (Reliance Communications) and financial services
(Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance
Energy), infrastructure and entertainment.

Reliance Money has over 22 lacks customers and more then 10'000 branches in around
5000 cities in India. Company is among the largest broking and distribution house of
financial products and having share of more then 3% of total stock market volume at BSE
& NSE.

RelianceMoney.com is the web based investment portal (with Online Stock Trading) from
Reliance Money. This website enables its customer to invest & manage most of the services
provided by Reliance Money including Equity (Stock) Trading, Commodity Trading,
Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances,
Money Transfer, Foreign exchange, Gold Coins and Credit Cards Services. Company
recently entered in to Wealth Management with tools like investment in equity-linked
portfolio management services, structured products, insurance and mutual funds.

The Reliance Money stock trading websites uses special security features 'Security
Token', which makes your online trading experience more secure without complexity.

Stock Trading through RelianceMoney.com is available for BSE and NSE stock exchanges.
Offline trading is also available through Reliance Money partners in more then 5000.

20
 D E M AT A C C O U N T
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 share: 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 possess a permanent Account number (PAN), and the deadline for
submission of PAN details to the depository lapsed on January 2009.

What are the benefits of opening a Demat account?

Demat account has become a necessity for all categories of investors for the following
reasons / benefits:

SEBI has made it compulsory for trades in almost all scrip’s to be settled in Demat mode.
Although, trades up to 500 shares can be settled in physical form, physical settlement is
virtually not taking place for the apprehension of bad delivery on account of mismatch of
signatures, forgery of signatures, fake certificates etc.

It is a safe and convenient way to hold securities compared to holding securities in physical
form.

It eliminates delays, thefts, interceptions and subsequent misuse of certificates

Change of name, address, registration of power of attorney, deletion of deceased’s name,
etc – can be effected across companies by one single instruction to the DP.
Each share is a market lot for the purpose of transactions – so no odd lot problem

Any number of securities can be transferred/delivered with one delivery order. Therefore,
paperwork and signing of multiple transfer forms is done away with. It facilities taking
advances against securities on low margin/low interest.

21
 DEMAT ACCOUNT

There are many broking houses doing business in India and they charge brokerage on every
transaction made online or offline. (Buying and selling are treat 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 column traded.
Reliance Money, the brokerage and distribution arm of Reliance ADA group, aims to tap
investors in the smaller town 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 pre-paid card for stock market brokerage. Reliance Money, the financial service
division of Anil Dhirubhai Ambani group promoted reliance capita, bringing to the market
per-paid cards in denominations of Rs 500, Rs 1000, Rs2500, Rs5000 and Rs 10000.
These card would offer brokerage at one third of the rate being charged by institutional and
individual brokerage houses. Sample this for a pre-paid card worth Rs 500, an investor can
trade up to Rs 2 lacks in both non delivery and delivery option.
The Rs1000 worth pre-paid card, total trading limit would reach Rs 1 crore, of which Rs 90
lacks is for the non delivery segment and Rs 10 lacks for delivery- based activities.
For Rs2500 pre paid card, total trading limit is fixed at Rs3 crore, of which Rs 2.70 crore is
for the non delivery option and Rs 30lakhs for delivery option. For the Rs 5000 pre paid
card, the total trading limit is Rs 7 crore out of which Rs 6.30crore is for non delivery
option and Rs 70 lacks for delivery option.
For the Rs 10000 pre paid card the total trading limit is Rs 20 crore , out of which Rs 18
crore is for non delivery option and Rs 2 crore for delivery option.
Reliance Money offers most competitive brokerage rate – 0.01paisa for intraday trades and
0.05paisa for delivery trades.
Target low level of retail penetration in India less than 3 percent of household financing
savings makes it into equity markets
Reliance money consumers can trade in equities, commodities and off shore Investments,
IPO’s, Mutual funds, Insurance, Money transfer and Money Changing-all through single
window, both off-line and online Reliance money has already tied – up with CMC Capital
Plc UK to offer Off shore Investment products to Indian consumers as per guidelines.

Investment Options

The investment options available with Reliance Money online portal are as below:

1. Equity (Stock) Trading at BSE, NSE and NSE F&O

2. IPO Investment
3. Derivatives Trading
4. Commodity Trading(Gold, Silver, Crude etc....) at MCX, NCDEX and NMCE
5. Mutual Fund Investment
6. Life & General Insurance
22
 7. 'Pure Swiss' Gold Coins (99.99% pure, 24 carat)

Trading Platforms

Reliance Money provides 3 different trading platforms for equity trading:

1. Insta Trade
2. Fast Trade
3. Easy trade

Reliance Money Technical Analysis (A paid service)

Reliance Money offers a simplified, automated, sophisticated technical analysis to Indian

retail broking consumers with the help of Recognia's Technical Analysis tools. Recognia, a
Canada based company, has proprietary pattern recognition technology capable of
recognizing patterns in the price charts of any publicly traded financial instrument including
stocks, bonds, funds, commodities, currencies and indexes.

The technical services are available for introductory free 7-day trail period to Reliance
Money users. Post the trail period, this service is available to users at a nominal
subscription of Rs. 99 for 3 months/ Rs. 179 for 6 months/ Rs. 299 for a year, i.e., less than
Re 1 a day.

Reliance Money Brokerage and fees:

Reliance Money offers lowest brokerage rates in today's online stock trading industry in
India. The brokerages are as low as 0.075% for delivery based trading and 0.02 for now
delivery. For more detail about Reliance Money’s brokerage and fees visit the below
section of this webpage.

Reliance Money Demat Account Charges:

Fee Head DP Charges

Annual Services Charges - For Individuals / HUFs / Trust Rs. 50/-
Annual Services Charges - For NRIs / Foreign Nationals, Corporate / Others Rs. 1000/-
Transaction Charges - SELL (Market & Off Market)
Rs. 25/-
For instructions given in physical form.
Transaction Charges - SELL (Market & Off Market)
For instructions received through Internet/ online trading through Reliance Rs. 12/-
Securities Ltd.

23
Advantages of Reliance Money

1. Extra security features with 'Security Token'', which is the most secure and tested
technology in computer world.
2. Simple, easy and fast online stock trading.
3. Almost all investment options are available under one account including Equity
Trading, Derivatives, IPO, Mutual Funds and Insurance.
4. Branches are available in all major cities and the number is growing.

Useful links about Reliance Money

1. Reliance Money Website: RelianceMoney.com

2. Branch Locator: Reliance Money Branch Locator
3. Download Application Forms: Application Forms

Reliance money – Transacting and investing simplified

Get ready to change the way you transact and invest in financial products and services.
Whether you wish to transact in Equity, Equity & Commodity Derivatives, IPOs, offshore
Investments, or prefer to invest in Mutual Funds, Life & General Insurance product 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:

1. Its 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 transaction through reliance money. This
fee is valid for one year or a specified transaction value
For more detail see the table:

Access fee (Rs) Time Validity Turnover Non-delivery Delivery

Validity turnover turnover
500 1 Year 2 Lack 2 Lack 2 Lack
1000 2 Months 1 Cr 90 Lack 10 lack
2500 6 Months 3 Cr 2.70 Cr 30 Lack
5000 1 Year 7 Cr 6.30 Cr 70 Lack
10000 1 Year 20 Cr 18 Cr 2 Cr

24
 2. It offers Single Window Access to almost all financial Products.
3. Its Convenient – Reliance Money’s services are through the Internet, Transaction
kiosks and over the phone.
4. Its Safe – Accounts are safe guarded with a unique security number that changes
every 32 seconds. This number works as a dynamic password to keep your account
extra safe.

Its provides you a 3….in… I facility – Of banking, Trading and Demat Account through a
single window and transfer funds across accounts seamlessly!

25
 CHAPTER-3

Objective of the Study

• To Understand the customer requirement.

• Find out the customers feedback about the service of reliance money.
• Brand awareness for the customer of Reliance Money

26
 CHAPTER-4
COMPANY PROFILE

The Reliance – Anil Dhirubhai Ambani Group is among India’s top three private sector
business houses on all major financial parameters, with a market
capitalisation of Rs.325,000 crores (US$ 81 billion), net assets in excess of
Rs.115,000 crores (US$ 29 billion), and net worth to the tune of Rs.55,000 crores
(US$ 14 billion) Reliance Money is a comprehensive electronic transaction platform
offering a wide range of asset classes. Its Endeavour is
to change the way India transacts in financial markets and
avails financial services. Reliance Money is a single window, enabling you to
access, amongst others in Equities, Equity & Commodities Derivatives, Mutual
Funds, IPOs, Life & GeneralInsurance products, Offshore Investments,
Money Transfer, Money Changing and Credit Cards. Reliance Money is a
group company of Reliance Capital; one of India's leading
and fastest growing private sector financial services
companies, ranking among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital Ltd. has interests in asset
management, life and general insurance, private equity and
proprietary investments, stock broking and other financial services. Reliance Capital is
one of India’s leading and fastest growing private sector financial services companies,
and ranks among the top 3 private sector financial services and banking companies,
in terms of net worth. The company has interests in asset management and mutual
funds,life and generalinsurance, privateequity and proprietary
investments, stock broking and other activities in financial services

27
RELIANCE ADA GROUP

28
29
30
ABOUT RELIANCE MONEY BREIF:

31
 RELIANCE CAPITAL

Reliance Reliance Reliance Reliance Reliance

General Insurance Life Insurance Money Consumer

Finance

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 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

32
 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 9 success sutras adopted by it

namely

Trust, Integrity, Dedication, Commitment, Enterprise, Hard work, Home work,

Team work play, Learning and Innovation, Empathy and Humility and last but
not the least it’s the Network .

These are the values that bind success with Reliance Money.

Vision of Reliance Money

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

Mission statement:

33
“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.”

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:

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

34
 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 accordance with a stated objective. Then
the ownership of the fund is just “joint” and “mutual”; the fund belongs to all
investors.

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 canalize 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.

35
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.

Structured products, art investments:

Structured Products is a new class of financial products for investors apprehensive of
increased volatility in stock markets. Specially designed products could include Equity,
Index-linked in nature, Real Estate Funds, Art Funds, Overseas Investments and
Infrastructure Investments.

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

Real estate advisory services:

Broking Model for lease/rent and buy/sell of property

Property Valuation

Real-estate Consulting – Corporate earnings model, Lease rentals, etc.

Offshore Investments:
Reliance Money provides a unique opportunity to invest in international financial
markets through the online platform which includes different product ranges.

36
 Online Portal
Motilal
Reliance ICICI Direct Religare Kotak Securities Oswal

Companies
EASY -
Online Portal R-ACE Pro Account with
(Basic)- static Quotes
Activation - Refresh
Equity Easy Trade Web based Charge Rs299 Fastlane option

R-ACE Pro KEAT - Kotak Spectrum-

(Advanced) Securities E Live
Activation charge trading access streaming
Insta Trade Direct Link - Rs 499 Terminal. Quotes

R-ACE Pro
(Professional) KEAT - Premium
Activation (Coustomised to
Fast Trade Charge - Rs 999 need)

Recognia Recognia Y Y Y

Y Y Y Y

Y Y - View N

Y N N
37
MY WORK AT RELIANCE MONEY

A t R E L I A N C E M O N E Y Ltd , i n i t i a l l y w e w e r e i m p a r t e d p r o c
ess and
p r o d u c t k n o w l e d g e . We w e r e g i v e n s u ff i c i e n t t i m e t o k n o w
about theproducts and also about sales and distribution cha
n n e l . We h a d t o w o r k w i t h t h e s a l e s r e p r e s e n t a t i v e s o f t h e D i
stributor and think of ways ofimproving the sales and distr
i b u t i o n c h a n n e l a n d i mp l e m e n t i n g t h e m . T h e m a i n a i m w a s t
o i n c r e a s e s a l e s a n d f o r t h i s d i ff e r e n t w a y s w e r e t r i e d a n d i
mp l e m e n t e d . We w e r e p r o v i d e d w i t h d a t a b a s e a n d h a d t o m
ake calls from the data. Company activity was also one of th
e majorsources for generating business. Initially they even
a c c o mp a n i e d s a l e s r e p r e s e n t a t i v e s t o t h e c l i e n t s p l a c e . M a
i n o b j e c t i v e w a s t o k n o w t h e n e e d o f t h e c u s t o me r a n d h o w t o
f u l f i l l t h a t i n t h e b e s t w a y.
The project dealt with various fields like:

1. Demat account
2. L i f e i n s u r a n c e

This experience helped me to understand the basic functioning of the Reliance

Money as a Broking House and I came to know the products of Reliance Money. The
Training Sessions were held by different persons from different organization like from
TATA-AIG, RELIANCE MONEY and BIRLA SUN LIFE. We were assigned
targets to sell the Life Insurance of Reliance Money along
with Demat A/c of Reliance Money. The training for Life Insurance was
conducted by Mr. Prakesh Chandra from Reliance Money ltd. The training for De-mat was

38
conducted by Mr. Sanjeev Vij as a trainer of Reliance Money. These training gave me
an insight into the products that Reliance Money deals in. The best learning
experience was that I started from the very basics of getting to that position and not
from the position itself. This helped me get useful insight and understanding of
various financial products, the market details about them and the benefits provided by
them to the customers.

O u r t a s k w a s d i v i d e d i n 4 phases :

1 . P ro d u c t k n o w l e d g e : T h i s i n c l u d e d t h e t h e o r e t i c a l k n o
w l e dge a b o u t t h e f i e l d a n d p r o d u c t s w h i c h n e e d e d t o b e m a r k
eted.

2 . P i t c h i n g i n re t a i l s e c t o r : T h i s i n c l u d e d t h e i m p l e m e n t
ation of theknowledge imparted to us and the test of our ma
r k e t i n g s k i l l s . I n i t i a l l y w e w e r e a c c o mp a n i e d b y o t h e r s a l
es executive so that we can learnhow to deal with the cus
t o me r s a n d u n d e r s t a n d t h e i r n e e d . T h i s a l s o e n h a n c e d o u r i
nterpersonal skills and confidence level.

3 . I mp l e me n t a t i o n i n re t a i l s e c t o r a n d p i t c h i n g i n c o r p o r
ate: By thestart of this phase we were confident enough a
b o u t t h e p i t c h i n g a n d f u l f i l l i n g t h e n e e d s o f t h e c u s t o me
r i n t h e r e t a i l s e c t o r. T h i s a l s o i n c l u d e d o f t h e w a y s w e s h
ould pitch the corporate.

4 . I mp l e me n t a t i o n a t c o r p o r a t e levels: This includ

e d t h e i m p l e me n t a t i o n of the all the k n o w l e d g e
and ways learnt for thepitching and extra

39
cting business out of the corporate.

Wi t h t h e e n d o f 8 w e e k s e v e r y p h a s e w a s c o mp l e t e d a n
d it gaveus the real experience of retail as well as corporat
e world.

CHAPTER-5

Competitors Of Reliance Money

LIC

40
While the public sector LIC dominates the Indian life insurance market with nearly
80percent of the market share. It has 248 branches, 115,000 employees
and over 1million agents. I have also been improving internal processes and system,
upgrading skills of its agency force and managers and developing innovative products.
LIC sod 1.69 crore polcies during the year compared to 18lakhs policies sold by private
players.

Bajaj Allianz

And now to make the competition more intense the company to really watch out for is
Bajaj Allianz Life Insurance. Bajaj Allianz has been focusing on second tire towns and
cities which are yet to witness the entry of other life insurance players apart from LIC.It
is using first mover advantage by opening an office in the most prominent location in a
non-metro town. It hires local people who are trained. Its mantra is to develop only the
indispensable infrastructure so that it can match the pricing of LIC.Apart from hat it

41
claims that it is the only private player t provides policy servicing at the branch level.
Standard Chartered is currently its biggest partner followed by Syndicate bank and
CENTURIAN BANK. The biggest challenge that the company faces is the weak
infrastructure

particularly transports and communications is the smaller cities. It is also facing a

challenge in terms of banking channels, particularly customer who bank with cooperative
banks, where delays in clearing cheques are inevitable. Tied agencies comprise the
biggest channel (68%) of new business acquisition FOR Bajaj Allianz (27%) is the other
significant channel of growth for the company.Bajaj Allianz with sales of Rs .9 billion
had a market share of 2.8%

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

In 1995, two companies – HDFC limited and Standard Life Assurance Company –
entered into a joint venture relationship. Values were shared. Beliefs merged. The
relationship was based on a platform of trust, commitment and excellence. Through the
hurdle-race of time, the two partners stood by each other and emerged at the forefront on
23rd October 2000.
HDFC Standard Life Insurance Company Limited was the first life Insurance company to
be granted the Certificate of Registration by the IRDA, Now; HDFC Standard Life aims

42
to mirror the success of its parent companies. It seeks to serve as the hallmark of
excellence, the yardstick by which all other life insurance companies will be measured.
ABOUT HDFC

Incorporated in 1977 as the first specialized Mortgage Company in India.

Almost 90% of initial share holding in the hands is domestic institutions and retail
investors.
Currently 76% of shares held by foreign institutional investors.
Besides the core businesses of mortgages HDFC has evolved into a financial
conglomerate with holding in.

TATA AIG LIFE INSURANCE COMPANY

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company,
formed by the TataGroup and American International Group, Inc. (AIG). Tata AIG Life
combines the Tata Group’s pre-eminent leadership position in India and AIG’s global
presence as the world’s leading international insurance and financial services
organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG
holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals
and corporates. Tata AIG Life Insurance Company was licensed to operate in India on
February 12, 2001 and started operations on April 1, 2001.

43
American International Group, Inc. (AIG), world leaders in insurance and financial
services, is the leading international insurance organization with operations in more than
130 countries and jurisdictions. AIG companies serve commercial, institutional and
individual customers through the most extensive worldwide property-casualty and life
insurance networks of any insurer. In addition, AIG companies are leading providers of
retirement services, financial

services and asset management around the world. AIG's common stock is listed on the
New York Stock Exchange as well as the stock exchanges in London, Paris, Switzerland
and Tokyo.

SBI LIFE INSURANCE

74% of the total capital and Cardif the remaining 26%. State Bank of India enjoys the
largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the
unrivalled strength of over 14,500 branches across the country, arguably the largest in the
world. Cardif is a wholly owned subsidiary of BNP Paribas, which is the Euro Zone’s
leading Bank. BNP Paribas is one of the oldest foreign banks with a presence in India
dating back to 1860. Cardif is ranked 2nd worldwide in creditor’s insurance offering
protection to over 35 million policyholders and net income in excess of Euro 1 billion.
Cardif has also been a pioneer in the art of selling insurance products through commercial
banks in France and in 35 more countries.

44
SBI Life Insurance’s mission is to emerge as the leading company offering a
comprehensive range of Life Insurance and pension products at competitive prices,
ensuring high standards of customer service and world class operating efficiency.

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance
products along with its numerous banking product packages such as housing loans and
personal loans. SBI’s access to over 100 million accounts across the country provides a
vibrant base for insurance penetration across every region and economic strata in the
country ensuring true financial inclusion.

Agency Channel, comprising of the most productive force of more than 25,000 Insurance
Advisors, offers door to door insurance solutions to customers.

BIRLA SUN-LIFE

It is a joint venture between ADITYA BIRLA group & SUNLIFE Assurance Company
with a paid up capital of Rs.290 crores, the company started its business as on 1st march
2003. The company distribution setup comprises insurance advisors for life & an expert
marketing team for group products ADITYA BIRLA Group is India’s 2 nd largest
business house, with a turnover of over $ 4.75 billions. The group is a well-diversified
conglomerate with 72,000 strong workforces spanning
40 companies spread across 17 countries.

45
Kotak Mahindra Old Mutual Life

Kotak Mahindra Old Mutual Life Insurance Ltd,is a joint venture between Kotak
Mhindra Bank Ltd.(KMBL),and Old Mutual plc.At Kotak Life Insurance, the company
aim to help customers take important finanancial decisions at every stage in life by
offering them a wide range of innovative life insurance products, to make them
financially independent.Mahindra Old Mutual Life Insurance was established in 2000 as
a joint venture between Kotak Mhindra Bank Limited (74%) AND Old Mutual plc,South
Africa(26%).The Kotak Mhindra
Bank Ltd. (KMBL)manages USD 4 billion in assets and it is in the only bank in India to
have a non-profitable assets level of 0%.KMBL was the first private company to receive
a retail bank license in2003.In he life insurance market, Kotak insurance, one of the
fastest growing companies in India. From FY2004-2005 it demonstrated a premium

46
income growth of 198%. Kotak Life Insurance, with 44 branches in over 30 locations,
and an employee force over 1,000 employees, is a company with a high level of brand
awareness Kotak Life Insurance aspires to a spiraling growth with a strong focus n
customer, products, geography distribution channel mapping and fund performance.

METLIFE LIFE INSURANCE

MetLife’s corporate vision – to build financial freedom for everyone – guides the
company’s response to people’s growing need for first-rate financial products and
services through various life stages and economic cycles. MetLife’s trusted brand, capital
strength, and existing relationships with millions of individual and institutional customers
around the globe uniquely position MetLife among its competitors.

The year 2001 was a true test of the qualities that define MetLife. The company’s core
values, brought to life in what MetLife does every day, were no more evident than in
MetLife’s response to the tragic events that shook our nation on September 11. MetLife

47
responded quickly. The company served its customers, communities and employees
during

this difficult time. At the same time, MetLife invested $1 billion in a broad array of
publicly-traded common stocks.

In the future, MetLife will continue to grow its business with focus, innovation and
profitability. This will be accomplished by drawing on the reservoir of history that has
produced an enduring set of corporate values based on more than 138 years of integrity,
social responsibility, strong leadership and financial strength.

MAX NEW YORK LIFE INSURANCE

Max New York Life Insurance Company Ltd. is a joint venture between New York Life,
a Fortune 100 company and Max India Limited, one of India's leading multi-business
corporations. The company has positioned itself on the quality platform. In line with its
vision to be the most admired life insurance company in India, it has developed a strong
corporate governance model based on the core values of excellence, honesty, knowledge,
caring, integrity and teamwork. The strategy is to establish itself as a trusted life
insurance specialist through a quality approach to business.

Max New York Life invests significantly in its training programme and each agent is
trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA
before beginning to sell in the marketplace. Training is a continuous process for agents at

48
Max New York Life and ensures development of skills and knowledge through a
structured programme spread over 500 hours in two years. This focus on continuous
quality training has resulted in the company having amongst the highest agent pass rate in
IRDA examinations and the agents have the highest productivity among private life
insurers.

201 agent advisors have qualified for the Million Dollar Round Table (MDRT)
membership in 2005. MDRT is an exclusive congregation of the world’s top selling
insurance agents and is internationally recognized as the standard of excellence in the life
insurance business.

SAHARA LIFE INSURANCE COMPANY

The Sahara Pariwar’s latest foray is in the field of Life Insurance. The Pariwar’s life
insurance company – Sahara India Life Insurance Company Ltd.- has been granted
license by the insurance regulator – the IRDA on 6th February 2004. With this approval
Sahara India Life Insurance Company Ltd. becomes the first wholly and purely Indian
company, without any foreign collaboration to enter the Indian Life insurance market.
The launch is with an initial paid up capital of 157 crores. The Chairman of the company
is Shri Subrata Roy Sahara who is also the Chairman of Sahara Pariwar.

49
ING VYSYA LIFE INSURANCE

ING Vysya Life Insurance Company Limited (the Company) entered the private life
insurance industry in India in September 2001, and in a span of 5 years has established
itself as a distinctive life insurance brand with an innovative, attractive and customer
friendly product portfolio and a professional advisor sales force.

It has a dedicated and committed advisor sales force of over 21,000 people, working from
140 branches located in 74 major cities across the country and over 3,000 employees. It
also distributes products in close cooperation with the ING Vysya Bank network. The

50
Company has a customer base of over 4,50,000 & is headquartered at Bangalore. In 2005,
ING Vysya Life earned a total income in excess of Rs. 400 crore and also has a share
capital of Rs. 440 crore.

AVIVA LIFE INSURANCE COMPANY

Aviva is UK’s largest and the world’s fifth largest insurance Group. It is one of the
leading providers of life and pensions products to Europe and has substantial businesses
elsewhere around the world. With a history dating back to 1696, Aviva has a 40 million
customer base worldwide. It has more than £377 billion of assets under management.

51
SHIRAM LIFE INSURANCE COMPANY

Shriram Life Insurance Company is the joint venture between the Shriram Group and the
Sanlam Group. Shriram Group The Shriram Group is one of the largest and well-
respected financial services conglomerates in India. The Group's main line of activities in
financial services include chit fund, truck financing, consumer durable financing, stock
broking, insurance broking and life insurance.
The Group has a customer base of 30 lacks chit subscribers and investors and operates
through a network of 630 offices all over the country. The Group has the largest agency
force in the private sector consisting of more than 75,000 loyal and dedicated agents.

52
 CHAPTER-6

RESEARCH METHODOLOGY

Scope of the study:

The research was carried out in New Delhi and NCR region city only. I have visited
people randomly nearby my locality, different shopping malls, small retailers etc.

Data Collection Method

Primary Data

SOURCE

53
 The primary data are those which are collected afresh and for the first time, and thus
happen to be original in character.

Primary data are collected from:

 Observation method
 Interview method
 Questionnaire method
 Other method:

o Warranty cards
o Distributor audit
o Consumer panels, etc
o

SECONDARY DATA

Secondary data required for this project are very few. Whatever the data are required, it
was collected from Management and Sales office.

Secondary data are:

 Books
 Magazines
 Newspapers
 Reports
 Publication of various associations connected with business, industry, banks stock
exchange, etc.

FIELD WORK

All the field work has been done by me only visiting the different market in the selection
area. Distribution in case of Distributor, running brands, highest selling brands etc.
Moreover a detail diagram has been presented to overview the area of operation.

RESEARCH DESIGN

A research design is the arrangement of condition for collection and analysis of data in
such a manner that it aims to combine relevance to the research purpose with economy in
procedure. It is actually a conceptual structure with which research is conducted. It

54
contributes the blue prints for collection of measurement and analysis of data, since our
project deals with the finding out the advisors benefits. Our research includes both
DESCRIPTIVE and EXPLORATORY RESEARCH DESIGN.
Descriptive research studies are those studies concerned with describing the
characteristic of particular individual of a group concerned with specific prediction with
material of fact & characteristic.
In the initial stage, up to the final discussion of the questionnaire, we conducted our
research through exploratory research. It includes the survey of related literature and
articles, depth interview and public opinion through questionnaire. It focuses on the
discovery of new ideas. For this type of research respondents should be given sufficient
time express themselves. This type of research can be conducted to find out the possible
causes like the sales might increase due to advisors efficiency.

SAMPLE DESIGN:

In our project we prefer to go for Random Sampling. Random sampling is said to be a

LOTTERY METHOD in which individual units are picked up from whole group not
deliberately by some mechanical process. The result obtained from probability, we can
measure the errors of estimation or the significance of results obtained from a random
sample and their facts brings out the superiority design over the rest sampling design. The
sample will have the same composition and characteristic as the universe.

Sample size:

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

Research Instrument
Questionnaire
As the whole study is mainly based on primary data the research instrument used to
collect primary data has been the questionnaire. The questionnaire has been designed in a
logical manner in such a way that the objective that is to be achieved is being met.
Adequate care has been taken in the contents, phrasing and the sequencing of the

55
questionnaire. Double barrel question have been avoided to prevent any confusion while
analyzing the data. The questions are designs are designed in manners that answer all the
above set objectives.
Generating Database
For conducting the research, so database has to be generated and for this a sample plays
an important part. A sample is a subset of a unit of a population, collected as a
representative of it. The sample has been collected in such way that it represents the
population. The targeted audience and their reference have been studied quite closely. In
any research, the size of the of the sample plays an important element in the research
process as the size of the sample has direct affect on he result of the research. Thus a
sample of size 100 samples has been selected keeping in mind of the cost and accuracy
factors in mind.
Telephonic Interview
Again data also been collected with the help of telephone as the cost involve in collecting
data is low compared to personal interview. People can be easily reached on the
telephones interview and the reluctances level of respondent is low.
Personal Interview
This is the technique, which is widely buying used in collecting of data. This is the most
costly technique, as one has to actually go in person and fill the questionnaire this is also
a Time consuming method of data collection.

SWOT ANALYSIS

The overall evaluation of a company’s strengths, weakness, opportunities, and threats is

called SWOT analysis. It involves monitoring the external and internal marketing
environment.

56
EXTERNAL ENVIRONMENT ANALYSIS

• OPPORTUNITY
• THREAT

A business unit has to monitor key macro environment forces (demographic-

economic, natural, technological, political-legal, social-cultural) and significant
microenvironment factors (customer, suppliers, dealers, distributors, competitors) that
affect its ability to earn profits.
A marketing opportunity is an area of buyer need and interest in which there is high
probabilities that company can profitability satisfy that need. There are three main
sources of the market opportunities. The first is to supply something that is in short
supply. This requires little marketing talent, as the need is fairly obvious. The second is to
supply as existing product or service is service improvements: by asking consumers for
their suggestion (problem detection method): by asking consumers to imagine an ideal
version of the product or service (ideal method).

The third source often leads to a totally new product or service.

An Environment Threat is a challenge posed by an unfavorable trend or development that

would lead, in the absence of defensive marketing action, to lower sales or profit. Threats
should be classified according to seriousness and probability of occurrence.

INTERNAL ENVIRONMENT ANALYSIS

• STRENGTHS
• WEAKNESS

57
 It is one thing to find attractive opportunities and another to able to take the advantage of
them. Each business needs to evaluate its internal strengths and weakness.

SWOT ANALYSIS OF RELIANCE MONEY LIFE INSURANCE CO. LTD.

 STRENGTHS

• Meant for the masses.

• Wide range of services.
• Wide network.
• Less charges that many of the private sector companies.
• Committed work force.
• Strong customer base.
• Availability of top R$D personnel.

 WEAKNESS
.
• Lack of advertising of its schemes.
• Less number of marketing managers.

 OPPORTUNITIES

• Growing population and expanding market.

• Increase in disposable income.

58
• The company can still expand its range of services by providing more services it its
customer.

 THREATS

• The basis and the foremost threat are from the competition both from the
public and the private sector, which are offering a wide range of services.
• Recession.
• Political instability.
• Fiscal policies resulting into increased taxes, duties import etc.
Tight money market in the future can be a major threat.

CHAPTER.7

Data Analysis

Data has been presented with the help of pie charts.

Q.No.1 which area do you Preference of Investment?

59
Interpretation: 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 increased.

Q.NO.2 Are you aware of Online Share Trading.

60
Interpretation: 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.

Q.No.3 Why do you prefer to investing in stock Market.

61
INTERPRETATION: 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 vest
because of the benefits they gain in tax.

Q.No.4 Are you aware about the brand of Reliance Money.

62
Interpretation: 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.

Q.No.5 Are you aware the facilities of Reliance Money?

63
Interpretation: 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.

Q.No 6 You have Demat Account of any Company.

64
INTERPRETATION: The study shows that 33% of the people having a Reliance
Demat account, India bulls hold on second position with 25% people, ICICI hold on
third position with 20% people , kotak mahindra hold on forth position with 18% people
and finaly 12 % people prefer to other company’s account

Q. No 7 Are you satisfied with the current broker?

65
Interpretation: This pie-chart corroborate the fact that Strategic
marketing, today, has gone beyond only meeting Sales targets and generating profit
volumes. It shows that all the competitors are striving hard not only to woo the customers
but also to make them Brand loyal by generating customer satisfaction.

66
Q.NO 8 What is the Frequency of Trading?

Interpretation: In spite 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.

Q No 9 What type of Problem faced during trading?

67
INTERPRETATION: 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 services provider problem

10. Customer statusQ.No10 What is your Occupation

68
 Businessman
Students
Service holder
Ex-Serviceman

INTERPRETATION: Most of the people who were

Surveyed re businessman,10% are students,14% are service holder and rest 16% are
ex- serviceman.

Q.No11 Do you have any suggestions.

69
INTERPRETATION:Most of the people suggested reliance money to broaden their
network so that is will be available to a large number of people. Some others suggested
on improving the customer services where as others laid emphasis on technical
improvement.

Q.No12 What percentage of earnings invested in share trading?

70
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

CHAPTER.8

71
FINDINGS

The summary of "Survey" conducted for reliance Demat Account, Can be listed down in

conjunction with the data analysis presented. The survey has been simultaneously taken up

by the company's competitor's like- India bulls, Kotak Mahindra but the impact of reliance

Demat Account was positive. The functioning and responses from the respondents

were authentic leading to a better view of the market scenario. The findings are listed

below:

• The company is targeting on emerging financial market in India with great

potential.

• The mutual funds market is on the rise yet.

• Majority of the respondents are Businessman.

• 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
• Literacy level of the respondents is high, majority of them are educated.

• Mainly, male respondents having Demat account than female.

• Mostly, people prefer to invest in stock market because of high return

• Most of respondents are having a Demat Account in Reliance Money.

72
 CHAPTER.9
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.
Company should have a scheme of rewards and recognition to employees and the field
persons to boost their motivation.
There must be proper advertisement of the company by various media like
Exhibition, Press releases, Newspaper, and Television etc.

73
There should be a good research team who has to survey the market and know about the
client’s satisfaction level and also found out the potential customer. There must be a
good infrastructure of the company to get the attention of the public and the office
should be at residential area so that customer get the service easily.
Though majority of the customer were satisfied with the existing function but the
organization should use some marketing strategies such as discount scheme on
amount of transaction made in a month by the regular customer. So it will enable the
customer to retain in the organization and to attract new customer.
There should be regular training programme like Workshops, Seminars, and Meetings
etc. for the sake of development of the organization and also for the development of the
employees’ performance simultaneously.

74
 CHAPTER.10
Limitations:

The project has been subject to the following limitations:

• The study was restricted to Reliance Money Limited to only in New Delhi
and NCR Resion.
• The study is conducted with the data available and the analysis was made
accordingly.
• It was tough to get all relevant facts from the personnel and employees
concerned due to some secret document not provided by the business
organization, which is inherent in an industry.
• Time factor was a limitation as only a stipulated period had been ascertained to
me while the personnel had little time to my queries due to their daily busy
schedule.
• It is not feasible to compare all the products of various brokerage firm.

75
 CHAPTER.11
CONCLUSION
It is evident that private life insurance companies are making their presence felt and over
the last five years, their progress has been remarkable. Potential is immense in this sector.
As our economy booms, this sector will have immense scope for business.
The flame of awareness is to be ignited more enthusiastically so that the untapped
potential is translated into actual business. Competition in this sector will bring benefits
to the society as a whole. The private players will obviously grow as there will be
pouring of capital once the 26% FDI cap is raised by the government.
During this project I have realized that persuading people to invest their time in advisory
business is not that easy. There is a major mind block among people, who still consider
the advisory business equivalent to door to door selling.
Though till now the conversion rate of financial consultants is very low but in
Future due to unemployment problem at a large scale prevailing in India and in future the
size of the market will grow and the insurable population of India is Indeed vast and the
existing player has managed to cover one fourth of it. The opportunity before the player
is falling interest rate, the collapse of many small time financial institution ,the scope for
entering related area like banking and pension in a bid for synergy and the promise of e-
commerce are some of the other Opportunity for insurance sector .
Finally while rounding up the project I would like to thank the organization for giving me
this wonderful opportunity to explore the insurance industry, on of he fastest growing
industries. The Three months spend in the company has been an eye opener for me and
look forward to more such association with the company.

76
Bibliography

Books

1. Market Research ( Naresh Malhotra)

2. Marketing Management ( Philip Kotler)

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

77
 Annexure A

General awareness of Demat account

Personal Information:
Name:
Address:
Contact No:
Occupation: Govt. Employee Non Govt. Employee
Businessman Non Employee
Salary Rs < 50000/- Rs 50000 to Rs100000/-
Rs 100000-Rs300000 Rs >300000

GENERAL AWARNESS ABOUT DEMAT ACCOUNT

1) Do you have any Demat Account?

yes no

a) If yes which company is it?

1) Are you aware about the brand of Reliance Money?

Yes No

2) Are you aware of online share trading.

Yes No

3) Why do you prefer to investing in stock Market?

High return & high risk Tax benefits Short term gain from investment

4) Are you aware the facilities of Reliance Money?

Yes No

5) Are you satisfied with the current broker?

Yes no

6) What is the Frequency of Trading?

Daily Weekly Monthly Yearly

78
7) What type of problems faced during the trading.
8)
Network Problem Information related problem

Manual Operating problem Service provide problem

11) What is your Occupation?

Businessman Student
Service Holder Ex-Serviceman
12 What percentage of earnings invested in share trading.
10% to 20% 20% to 40%
40% to 60% 60% to 80%
13) What is the best thing in our company.
Customer Service Broad Network
Technical Improvement.

79
 ANNXEURE B

GENERAL AWARENESS OF LIFE INSURENC

1. ARE YOU EMPLOYED?

(a) YES (b) NO

2. DO YOU HAVE ANY INSURANCE POLICY?

(a) YES (b) NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

(a)LIFE (b)NON-LIFE (c)BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST?

(RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY?

(Please Tick)

a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______

(Specify)

80
6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER?
(RANK THEM)

a) COVER FUTURE UNCERTAINITY

b) TAX DEDUCTIONS

c) FUTURE INVESTMENT

d) ANY OTHER _________ (Specify)

7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

(RANK THEM)

a) LOW PREMIUM

b) LARGER RISK COVERANCE

c) MONEY BACK GUARNTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________ (Specify)

8. YOUR MONTHLY INCOME?

a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

9. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S

SCENARIO IS NOT ESSENTIAL?

_____________________________________________________

10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

81
 c) A TOOL TO PROTECT FUTURE

11. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?

a) CUSTOMER APPROCHED INSURANCE COs

b) INSURANCE COs APPROCHED CUSTOMER

12. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

13. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

14 DO YOU PAY TAXES?

YES NO

15. WHERE HAVE YOU INVESTED FOR TAX SAVING?

(RANK THEM)

a) LIC

b) NSC

c) BONDS

d) PPF

e) PF

f) EPF

82
16.WHICH IS THE BEST FORM OF INVESTMENTS?
(RANK THEM)

a) FIXED ASSETS

b) BANK DEPOSITS

c) JEWELLERY

d) SECURITIES, i.e. Bonds, MFs

e) SHARES

f) INSURANCE

17. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY

c) TAX BENIFITS

18. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs

b) AFTER 35 Yrs

c) AFTER 45 Yrs

d) ANYTIME

19.HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS

b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVE

83
 e) SATISFACTORY

f) GOOD

g) VERY GOOD

20 ARE YOU PLANNING FOR NEW INVESTMENTS?

PLANNING NOT PLANING

21 WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM

CITY OFFERS BETTER SERVICE & PRODUCTS?

a) YES

b) NO

b) UNCERTAIN

THANK YOU

NAME:

ADDRESS:

OCCUPATION:

84
85