Relance Money Project

SUMMER TRAINING

ON Share Trading and Mutual Fund “A CUSTOMER PERSPECTIVE”

JAIPURIA INSTITUTE OF MANAGEMENT LUCKNOW By Sunil Kumar Singh Regt. No. CFT08_149 PGDM (2008-10) EXECUTIVE SUMMARY

I have done my summer internship in RELIANCE MONEY. During my stint, I was exposed to theoretical as well as practical learning. My project starts with an overview of the Indian capital market and the profile and history of Reliance Money. It lists the various activities handled by reliance money. A flaw of any department can cause us lots of problem and hence we have to be very cautious about the same. The project contains the workflow of the operation unit of Reliance Money and the implementation of various process of extracting from capital market segment.

ACKNOWLEDGEMENT It has been very enriching experience working in “RELIANCE MONEY” (Anil Dhirubhai Ambani Group), Agra (U.P.). This department deals with all products like DMAT A/c, Share Trading, Mutual Fund, Life Insurance and General Insurance etc. I am extremely thankful to everyone who has helped me to give this project its present form. I am very thankful to Mr. Saurabh Jain (Center Manager) and Mr. Amit Dixit (Cluster Manager) for providing me the opportunity to undergo the practical training in the Sales and Distribution Division of Reliance Money Limited under the supervision of Mr. Sandeep Bhatt (Assistant Center Manager). He guided me from time to time and gave me dynamic ideas and suggestions by which I am able to complete my training successfully. I am thankful to the. Reliance Money Limited staff members who made me feel comfortable during my training period & helping me in completion of work assigned during the training period. I sincerely thank all the visible and non-visible hands, which helped me to complete the practical training with great success. I also thankful to Mr. Shamendra Jain to giving me full support in completion my project.

Last but not least I would like to thank my family who have always encouraged me and taught me to think and work out innovatively, whatsoever is the field of life .To be very candid, whatever I know about marketing concept that has been possible due to the well managed intense training education imparted under conditions, which are quite conducive to learning, at my institute Jaipuria Institute of Management, Lucknow. Education and acquisition of knowledge has no limits or boundaries. It is an ever – expanding field and we need to keep our faculties straight and absorb this vast ocean of knowledge, as much as we can. Doing things we not only widen our personal horizons but also able to present ourselves as a more intelligent being in front of other. SUNIL KUMAR SINGH PREFACE A project report describes plan of any activities undertaking. We may say that the project reports describe various activities of the concern. It gives us practical aspect of the concerning subject. The numbers and importance of project report operating is growing at a very fast pace in the society. We now are in need of

input form the different strata of the society such that the project report is very suitable for detailed study in any area. I have been assigned to submit a project report on

Share Trading and Mutual Fund “A CUSTOMER PERSPECTIVES” Basis: Reliance Money The scope and need of this project was to have an in-depth knowledge of Share Trading & how it can be implemented in our present economical perspective. It also includes a detailed analysis of advantages Mutual Fund.

TABLE OF CONTENTS

 INTRODUCTION Objective of the study Industry profile

Company products  ABOUT SHARE TRADING AND MUTUAL FUND  RESEARCH METHODOLOGY Secondary Research Primary Research Sampling Design Survey technique Research Tools  RESULTS OF THE STUDY  RECOMMENDATIONS  CONCLUSIONS  BIBLIOGRAPHY  WEBLIOGRAPHY

OBJECTIVE The main objective of training is to aware students about new market concept & industrial environment in which they have to work after the completion of their course It is not possible for students to master everything in this short span of time. But it does help the students in knowing about

what is happening in the market & new technologies & trends that are prevalent in the market. My objective during the summer training was to learn about all the products. The company provides the knowledge about the online share trading, DMAT A/C, mutual fund and Life Insurance. It gave the basic knowledge as well as the concept behind these. I also learned about how to deliver the products in front of the customers. It was a good learning that how to interact with the different kind of customer in the market. Therefore I have selected a topic for the project which is related to customer perspective about share trading and mutual fund with reference to Reliance Money.

ANIL AMBANI PROFILE

Born: June 4, 1959 Achievement: Chairman of Anil Dhirubhai Ambani Group; Chosen as the 'CEO of the Year 2004' in the Platts Global Energy Awards and MTV Youth Icon of the Year' in September 2003. Anil Ambani is one of the foremost entrepreneurs of Independent India. He is the Chairman of Anil Dhirubhai Ambani Group. Earlier, before the split in the Reliance Group, Anil Ambani held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL). Born on June 4, 1959, Anil Ambani did his Bachelors in Science from the University of Bombay and Masters in Business Administration The Wharton School at the University of Pennsylvania. Anil Ambani joined Reliance in 1983 as Co-Chief Executive Officer. He pioneered India Inc's forays into overseas capital markets with international public offerings of global depository receipts, convertibles and bonds. Starting from 1991, he led Reliance in its efforts to raise, around US$2 billion from overseas financial markets. In January 1997, the 100-year Yankee bond issue was launched under his stewardship. After the split in Reliance Group, Anil Ambani founded Anil Dhirubhai Ambani Group. He is the Chairman of all listed Group

companies, which include: Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited. Anil Ambai was elected as an independent member Rajya Sabha MP in June 2004. But he resigned voluntarily on March 25, 2006. Anil Ambani has won several awards and honors. Major among these include: 'CEO of the Year 2004' in the Platts Global Energy Awards, 'MTV Youth Icon of the Year' in September 2003, 'The Entrepreneur of the Decade Award' by the Bombay Management Association, and 'Businessman of the Year Award' by leading Business Magazine, Business India in 1997.

INDUSTRY PROFILE 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 general insurance, private equity and proprietary investments, stock broking and other activities in financial services. 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 is a part of the Reliance Anil Dhirubhai Ambani Group. 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 & General Insurance products, Offshore Investments, Money Transfer, Money Changing and Credit Cards.

COMPANY PRODUCTS Reliance Money is a comprehensive solutions provider offering a complete basket of financial services. Through Reliance Money, currently, a customer will be able to transact amongst others, in

equity and commodity, derivatives, offshore investments, IPO’s, mutual funds and insurance products. At the present the company has more than 350 employees across 75 locations with a total number of 42 offices. Reliance Money can be segregated into four main products which include: 1. Reliance Life Insurance Plans 2. Reliance General Insurance Policies 3. Reliance Mutual Funds 4. Reliance On Line Trading Facility

RELIANCE LIFE INSURANCE With the largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20% annually and presently is of the order of Rs450 billion. Together with banking services, it adds about 7% of the country’s GDP. Gross premium collection is nearly 2% of GDP and funds available with LIC for investments are 8% of GDP. A well-developed and evolved insurance sector is needed for economic

development

as

it

provides

long-term

funs

for

infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investment of the order of one trillion US dollar. The Insurance sector, to some extent, can enable infrastructure development to sustain economic growth of the country. GENERAL INSURANCE The history of General Insurance dates back to the Industrial Revolution in the west and the conquest of sea-faring trade and commerce in the 17th century. It came to India as legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd., was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code fro ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and

set

minimum

solvency

margins.

The

Tariff

Advisory

Committee was also set up then. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and

more has seen it been opened up substantially. In 1993, the government set up a committee under the chairmanship of RN Malhotra, former Governer of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994, where in, amongst other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. The non-life/general insurance business continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With these nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC). General Insurance is another segment, which has been growing very fast. But as peer the current comparative statistics, the general Insurance Premium as a percentage GDP was mere 0.5% in 1996. In the General Insurance business, General Insurance Corporation (GIC) and its subsidiaries viz., New India Insurance, Oriental

Insurance, National Insurance and United India Insurance are doing major growing at a rate of 19% per year. CONCEPT OF MUTUAL FUNDS A Mutual Fund is trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instrument such as shares, debentures and other securities. The income earned through these investments and capital appreciations realized are shared by its unit holders in proportion to the number of the units owned by them. Thus, a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

Reliance Money – New online trading platform from reliance Capital Reliance capital entered into online trading business through “Reliance Money”. Reliance Money is offering highly competitive brokerage fees with the option for “fixed flat fee structure”. 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 is a part of the Reliance Anil Dhirubhai Ambani Group. Reliance Money which commenced commercial operations in April 2007 has over 300,000 customers and 4,300 outlets in more than 3,500 locations across India. 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 & General Insurance products, Offshore Investments, Money Transfer, Money Changing and Credit Cards. Reliance Money, promoted by Anil Dhirubhai Ambani Group firm Reliance Capital, would offer the brokerage services across 700 cities including Delhi and Mumbai through 3,000 outlets. Reliance Money consumers can trade in equities, commodities and offshore investments, IPOs, mutual funds, insurance and money transfer.

Reliance Money offers lowest brokerage for Day Traders Reliance Money (owned by Reliance Capital) is offering lowest brokerage for trading in stock markets in India. The company is offering a value package under which one can do trading at very low cost. Reliance is also offering demat, insurance and mutual fund services. Reliance money has different options for Beginner, Moderate Traders and Heavy Traders. This is a single window for Banking, Trading and Demat Account. The clients can easily transfer funds across accounts. Your account is safeguarded with a unique security number that act as a dynamic password and changes every 32 seconds. Reliance Money also offers Risk Analyzer for analysis of your risk profile. The introductory offer includes. •

You pay Rs 500 and you get Day Trading limit of Rs 5 Lac

•

Pay 500 more and get Day Trading limit of Rs 1 Crore

•

Pay Rs 1350 and get Day Trading limit of Rs 5 Crore.

Indiabulls is offering 5 paisa (per Rs 100) for day trading and with taxes and stamp duty, your cost becomes nearly 6 paisa per Rs 100. They will provide you with software and the interface is almost similar to your traditional broker terminal. You can put orders in real time and see many stats for stock markets. If you are active day trader, Indiabulls will also send you daily contract

notes. Their website also offers facility to download the contract notes. The customer care executive or your personal account manager will be always at your help in case you need any information or you are stuck somewhere. Overall, their services are good and the network is well developed all over India. 5 Paisa is also offering a price similar to Indiabulls. The offer additional advice and some tips to their clients. While, Mansukh offers similar price, they have additional benefit that they only charge you if you make profits. Indiabulls offers stock research and tips in case you are active day trader. Please note that we are not having any connection with any of these brokerage houses. We are only providing it as information for our visitors. You should consult your friends or financial advisor before making final decision. Is Reliance Money the best platform for online trading in India? Is it better than Kotak and Sharekhan? Yes. Reliance Money has certain features that make it much better than Kotak and Sharekhan However, its you who is trading and you have to decide accordingly. Reliance offers you the best interface and also service. The main reason why people are shifting to Reliance is the cost factor. People used to pay a heavy brokerage all these days. With Reliance money, you are just paying a flat fee of Rs 250 per month as brokerage and you can trade up to Rs. 1 crore.

When you use the 1 crore limit, you can again recharge the account for Rs. 250 and continue. It’s very simple I am a dealer for Reliance Money and I think, it’s my duty to furnish all the details to ensure that you get the total information. So, I have added some additional information which will tell you more details about Reliance Money Reliance Money- a single window for all your financial transaction needs About Reliance Money We all know the effect of the word Reliance on us, a company which has entered almost every arena of business and created wonders. Every project taken up by the company turns into a golden project. The company has something, which we can call as, The Midas Touch. Well, Reliance Money is the electronic transaction platform associated with Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranked amongst the top 3 private sector financial services and banking companies, in terms of net worth what is Reliance Money? Reliance Money offers a comprehensive platform, offering an investment avenue for a wide range of asset classes. Its endeavor is to change the way India transacts in financial markets and

avails financial services. Reliance Money offers a single window facility, enabling you to access, amongst others Equity, Equity and Commodity Derivatives, Offshore Investments, IPO’s, Mutual Funds, Life Insurance and General Insurance products Why Reliance Money? Reliance Money is the most cost-effective, convenient and secures way to transact in a wide range of financial products and services. The highlights of Reliance money's offerings are:

Cost-effective The fee charged by the affiliates of Reliance Money, through whom the transactions can be placed, is among the lowest charged in the present scenario. Pay a flat fee of just Rs. 500/valid for 2 months or specified transactional value Note: The facility of trading is subject to expiry of the validity period or value limit, whichever comes first Fee structure and validity limits Access fee- Rs. 500 Validity- Time validity of 2 months or Turnover validity of Rs. 1 cr., whichever is earlier Turnover limit- Non-delivery turnover of Rs. 90 lac, Delivery turnover of Rs. 10 lac

Access fee- Rs. 1350 Validity- Time validity of 6 months or Turnover validity of Rs. 3 cr., whichever is earlier Turnover limit- Non-delivery turnover of Rs. 2.7 cr., Delivery turnover of Rs. 30 lac Access fee- Rs. 2500 Validity- Time validity of 12 months or Turnover validity of Rs. 6 cr., whichever is earlier Turnover limit- Non-delivery turnover of Rs. 5.4 cr., Delivery turnover of Rs. 60 lac Note: Unutilized delivery limit may be added to Non-delivery limit Convenience You have the flexibility to access Reliance Money services in Multiple ways: through the Internet, Transaction Kiosks, Call & Transact (phone) or seek assistance through our Business Partners Security Reliance Money provides secure access through an electronic token that flashes a unique security number every 32 seconds (and ensures that the number used for earlier transaction is discarded). This number works as a third level password that keeps your account extra safe Single window for multiple products

Reliance Money, through its affiliates/partners, facilitates transactions in Equity, Equity & Commodity Derivatives, Offshore Investments, Mutual Funds, IPOs, Life Insurance and General Insurance products Note: All overseas investments are subject to rules, regulations and guidelines of the Reserve Bank of India as laid down from time to time 3 in 1 integrated access Reliance Money offers integrated access to your banking, trading and demat account. You can transact without the hassle of writing cheques. Demat account with Reliance Capital Hassle free demat account with Reliance Capital. The Annual Maintenance Charge for the Demat Account is just Rs. 50/- per annum Other Services Through the portal www.reliancemoney.com, Reliance Money provides: •

Reliable research, including views of external experts with an enviable track record.

•

live news from Reuters and Dow Jones

•

CEOs'/experts' views on the economy and financial markets

•

The Personal finance section provides tools that help you plan your investments, retirement, tax, etc

•

Analyze your risk profile through the Risk Analyzer

•

Get a suitable investment portfolio using the Asset Allocator

LEGAL AND REGULATORY ENVIRONMENT SEBI - The capital markets regulators also regulates the mutual funds in India. SEBI requires all mutual funds to be registered with them. SEBI issues guidelines for all mutual funds operations investment, accounts, expenses etc. RBI as supervisor of banks owned mutual funds - As banks in India came under the regulatory jurisdiction of RBI, bank owned funds to be under supervision of RBI and SEBI. RBI as supervisor of Money Market Mutual Funds - RBI has supervisory responsibility over all entities that operate in the money markets. Hence in the past Money Market Mutual Funds scheme of Mutual funds had to be abide by policies laid down by RBI. Recently, it has been decided that Money Market Mutual Funds of registered mutual funds will be regulated by SEBI through SEBI (Mutual Fund) Regulations 1996.

Ministry of Finance - (MoF) ultimately supervises both the RBI & the SEBI and plays the role of apex authority for any major disputes over SEBI guidelines. Company Law Board - Dept of Company Affairs Registrar of companies AMCs of Mutual funds are companies registered under the companies Act 1956 and therefore answerable to regulatory authorities empowered by the Companies Act. Stock Exchanges Stock Exchanges are self-regulatory organizations supervised by SEBI. Many of closed ended funds of AMCs are listed as stock exchanges and are traded like shares

Office of the Public Trustee Mutual funds being public trust are governed by the Indian Trust Act 1882. The Board of trustees or the Trustee Company is accountable to the office of the public trustee, which in turn reports to the Charity commissioner

Unit Trust of India Unit Trust of India formed under UTI Act 1963.The Management of the Trust is under a Board of trustees, which has names of RBI, IDBI, LIC, and SBI with the chairman appointed by the Government of India in consultation with the IDBI. Self-Regulatory organizations A Self Regulatory organization (SRO) is an association representing a group of market participants, which is empowered by the apex regulatory authority to exercise pre-defined authority over regulation of their members. For example stock exchanges. However everybody representing a group of market participants does not automatically become a SRO. Association of Mutual funds of India (AMFI) AMFI is not a SRO. It has been formed in 1995 with the objective of representing the Mutual fund industry collectively with a view - To promote the interests of Mutual Funds and Unit holders. - To set ethical, commercial and professional standards in the industry. - To increase public awareness of Mutual funds in the country

SHARE TRADING Points To Consider Before Investing It’s always risky to invest your money in one stock. The confidence in a stock may be effective but the overconfidence can be hazardous. The stocks and stock markets have very irregular nature. It is very hard to analyze the future conviction of a stock. The unpredictable things may occur, which may have shocking effects on the investors. The investors should always track few lucrative stocks before investing. The investors are always advised to interpret the stocks and stock market correctly, study the past as well as present movements of the stocks, and adopt the flexible policies that may deal with the changing market trends. It is very difficult to predict the future of the stock market, but the investors outline brief plan about how the market may perform in the coming future on the basis of market trends. The stock markets are highly volatile and erratic in nature. The investors should follow the active market trends and manage their stocks in such a way so that they must earn some gain. If you are a day trader, you should make proper selection of the stock and when the suitable time comes, sell it. Don’t wait for further increase; otherwise you may lose your money. In case of

long-term investing, you should pick the stocks that have some demand and when the price reaches to its highest peak, covering your costs plus profits, then its better to sell it. You must take help from an expert and follow proper instructions to make bigger profits. Stock Market Story Stock exchange provides an opportunity to investors to invest money in the securities of their choice. It is a structured securities market that offers sufficient marketability and price stability for shares so essential for the requirements of investors. It (stock market) is considered as a symbol of the growth of an economy. Stock market offers a balanced measure of security and integrity in the sale and purchase of different securities. Through the interchange of demand for the supply of securities, a wellstructured securities market helps in accurate valuation of stocks. The stock exchange assists in the systematic flow of distribution of savings as between various kinds of aggressive investments. The stock exchange is considered as an organization of huge significance in every country. Industrial development and expansion hinge upon capital formation, that is, money being invested in various securities. This becomes achievable on a large scale due to subsistence of stock exchanges. Those who are

interested in investing their funds are usually fascinated towards securities issued by various companies. The prices of particular securities traded at the stock exchanges reflect their relative demand and supply. The prices of securities also indicate the financial health of individual companies. This serves as a guide to the investors to invest in sound securities. The security price index schedule provides a reasonable indication of the state of the economy, industry and business. That’s why the stock exchange is known as the ‘barometer of the economy.’ Just like, the barometer depicts the changes in atmospheric pressure; stock market quotes give an idea about the economic progress of a country. Swing Stock Trading Swing stock trading is a short-term trading technique in which stocks are held only for shorter periods such as two to four days or weeks. Normally, the newcomers adopt this style and it depends on the weekly or monthly variations in stock prices. Swing trading provides higher returns as compared to day trading. However, swing traders have to suffer overnight risk, which could have adverse affect on stock price. Swing traders suffer less challenge from big traders. During the upward trend, a swing trader observes a particular stock for a couple of days. If there is a downfall in the market, the

trader shifts to another emerging stock. Swing trading is most productive, when the markets are performing firmly. A swing trader appraises the temporary impulsion and pricing strategies of the stock, rather than its basic value. Swing stock trading carries lesser risks. A swing stock trader takes advantage from the expected steady market instabilities. When there is substantial price variation in the market, the swing trader sells the stock without waiting. Swing stock trading provides quick results, but the important thing is to choose the right market and the right stocks. Swing trading ignores rapid increase or decrease in stock prices and the prices tend to go in straight direction without fluctuating. Swing trading is best for part-time traders, while day traders have to watch each and every movement in quotes and they have to stick to their computers for many hours. Swing trading doesn't require that type of focus and dedication. In brief a swing trader’s aim is to generate money by captivating the immediate changes that stocks attain in their lifetime, and at the same time manipulating their risk by following suitable money management practices. Day Trading Numerous people have wrong perception that short term trading strategy is chancy and long term trading strategy is secure. But

this is wrong, both short term trading and long term trading can be effectual trading strategies. Stock market is a place where investors can earn lots of money in the short time as well as in the long run. The return on investments mainly depends on the time durations for which the investments are made. There are various types of trading styles that investors may opt to make profits from the stock market. In this article we talk about day trading. Under day trading method, the stocks are held only for short periods - for few hours or minutes or seconds. The day trading offers various opportunities to make big profits daily. The trading process for the day trading comprises exciting strategies, which assist the investor to make good profits. Day traders buy and sell stocks during the whole day, hoping that the price of the stocks will rise and let them to make quick gains. A day trader will sell all stocks before closing of stock market. The purpose of day trading is to speedily get in and out of any stock for a return anywhere from a few cents to several points per share on an intra-day basis. The day trading helps investors to control the fear of overnight risk. If the investors have ideal plans to choose the investment opportunities from the stock market, the day trading is the best option idea to make quick money. Online Stock Investing Benefits

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

The Brokerage charges are Rs. 12 per transaction and not depending on the amount of money in the Reliance Money  Online trading is advantageous as the company lets the

investor to chart the lucrative stocks and also updates the investor with the most recent updates and news on the stock market.

 One of the best parts about online stock trading stock is its easiness to access your account, get detailed information about the company and stock you invested in, etc.  You have total freedom to buy and sell stock in your own way and at your own time. Basically online investing is the best way to invest money with complete freedom.  If you want help while trading online you are capable of making contact with other trained brokers and investment counselors and ask questions to them.  When you trade stock at your home, you save lots of money and time. Investing In the Stock Market Online stock trading is a new technique of buying and selling stocks, which has created a boom in the stock market industry. It has made all people to have the benefit of stock trading by using their own PC. Now you can buy and sell any stock over the Internet and it doesn’t take much to begin. Thru online facility, you can have a proper check over the market situation from any corner of the world. In today’s hasty and hard life, nobody has time to personally visit the stock brokers or companies to collect information or to invest in their schemes. So, the invention of internet has proved to be the most excellent tool in the stock trading that has given rise to trade stock online from the comfy atmosphere of your home or

office. Here are few points that you have to consider while getting involved into it: - You should make proper research for a well-known and trustworthy company before putting your hands in stock market as there are several Internet sites that deal in the buying and selling business of stocks. You should get through the evaluations and testimonials of different investors those who are already dealing with them and you can also visit bulletin boards to grab information about other companies. - There are several Internet sites that are linked to the buying and selling of stock to foreign markets while some are related to the overseas as well as domestic markets. You should decide earlier with which company you want to start trade so that you should not mix up the things. - You should always go for the sites that are completely secured as your financial plus personal information has to be inserted over the site to start the stock trading online. If the security of the site is less than your level of satisfaction then need not to step in as there might be the chances that your loaded data can be abused in future. - First investigate about the payment or other charges charged by different sites. You should always choose the site charging less fees per trade, thus, you should take the benefit of online trading

that cannot be enjoyed in trading stock in a traditional manner. Online investment sites provide 24 x 7 hours assistance so that if you need any help, they should always be present to support you. Online Stock Trading Is Very Opportunistic Stock market is a place where investors can make continuous profits by investing their funds in different segments. Stock trading has turned into big business, now-a-days. It offers several choices to investors, which include breakeven (BE) systems, online stock trading, futures trading and chances to make bigger gains. Each stock investment is based on three vital constituents i.e. capital, outlook and technique. There are numerous investors that buy or sell shares on a daily basis. The online facility has made stock trading an easier and simpler process. The online stock trading (buying and selling of stocks) thru Internet has attained much important all through the world. Because of its advantages, it had attracted more and more users. Online stock trading lets investors to buy or sell shares automatically. It is a resourceful and suitable method to scrutinize the stock market and make investments in the lucrative sections. But, it is vital that investors should have proper knowledge about stock market basics, otherwise it will create problems in future. The online stock trading has offered an opportunity to investors to branch out their temporary plus permanent

investment plans, and to make investment in stock markets all thru the world. The other benefit of online trading is that investors need to pay less brokerage charges. It also helps investors to take immediate action, without any delay. The number of online companies also provides the services like stock trading, automatic investment and even reinvestment of dividends with info to buy or sell once the price reaches a higher level. In order to make better returns on investments, investors can hire a stock broker. Investors can also take help from a trading professional or a trading institute that will offer advantageous opportunities for their investment bag. Points to Remember for a Newcomer in Stock Market We all are interested in investing money in the stock market, which provides opportunities to increase our wealth within short periods. Stock exchanges encourage investments and provide a permanent market for securities. Various types of securities are traded there. Therefore it is an easy way for investors to utilize their available cash instead of blocking. If there is an upward trend in the stock market, then you can easily reap gains in much lesser time, but if there is downfall, you need to wait for some profitable time. Stock market fixes no limits on investors; they can easily make their profits and raise their profitability accordingly.

But, it is necessary that you must know the basic rules and conditions of the stock market. The trading in a stock exchange is done under strict rules and in a very orderly manner. Stock market conditions assist you to earn higher gains with your limited incomes. If you are a newcomer, then you have to gain some knowledge about this opportunistic market. Stock market carries higher degree of risk for all. Whether you are a day trader, swing trader or long-term holder, you need to follow some rules. Stock exchanges are well-organized markets that publish the quote list of the securities traded on daily basis. The investor gets the latest prices of their securities, which are prepared by the experts. Stock exchange acts as a middleman between the seller and buyer of securities. Therefore, it helps in mobilization of funds for the companies. Is trading through the Internet safe? The safety of transactions on the Internet depends on the encryption system used. The better this transaction system, the more difficult it is for any person to hack the site. Internationally, the best system available today is the 128-bit encryption, a system, which evens the Pentagon uses. ICICIdirect.com is one of the few online share-trading sites in the country equipped with this 128-bit encryption. Secondly, you too can ensure the safety of the transactions online. You normally get a secured user id and password, the

secrecy of which is to be maintained entirely by you. Thirdly, if the transaction system requires no manual intervention, you further improve the safety in the transactions. Among Indian sites, ICICIdirect.com is one of the very few fully integrated online trading sites. This enables the elimination of the possibility of any manual intervention. Which means orders are directly sent to the exchange ensuring that you get the best and right price? What about security of my money demat shares and my transaction documents? In systems where the broking, banking and demat accounts are completely integrated, your money remains in your own bank account, and does not get transferred to the broker's pool account.

Is trading through the Internet a difficult and cumbersome process? The experience of trading through Internet depends a great deal on the type of product offered by the site. Say, for example, one of the issues bothering you may be tired of the paperwork involved after every trade in writing cheques or TIFDs. You would then seek a system that eliminates these processes. In online trading sites, the greater the back-end integration of the system, the greater the amount of work the sites do for you,

therefore greater the convenience available to you.For example, incase of ICICIdirect.com, your broking account, bank account and demat account are linked electronically. So when you punch in a buy or sell order, the system checks the funds/ shares availability and automatically credits/debits the accounts once the order is executed by the exchange.

But I am not comfortable with Internet, or with finance, how can online trading be easy for me? Contrary to common perceptions, trading through Internet does not require either any expertise in working on the computer, or any special financial skills. You could try the demo (demonstration) of the online trading sites like ICICIdirect.com to find out why others like you, with little or no knowledge about the Internet or finance, have switched on to online trading. Or you could attend the demonstrations sessions held by such websites in your city.

How frequently is the price updated at all these online trading sites? The tickers available at online trading sites provide instantaneous updates. Also, some websites can offer to transact in those shares instantaneously and with convenience.

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

MUTUAL FUND About Mutual Fund What is it about investing that irks you most? Is it the fact that it is time-consuming since it involves researching the market for investment products and then proceeding with the paperwork involved? Or could it be that once you have made your investments, you cannot find the time to monitor them? Like most

of us, do you dread a situation wherein you need your money all of a sudden and have no access to it or have to run from pillar to post to get it back? Do you sometimes hesitate to invest because you are unsure about how well-regulated investment products are? Is your approach to investing constrained by the fact that you possess limited investment capital, which does not allow you to achieve the diversity that you desire? If these are some of the reasons that make you feel disinclined to undertake an investment exercise, consider mutual funds. This investment vehicle successfully addresses the above concerns and offers other benefits too. Let’s take a look at what exactly a mutual fund is and how it functions. A mutual fund is an entity, which offers a number of investment schemes with different investment objectives. An investor interested in investing in these schemes needs to assess which scheme has an investment objective that matches his, to make his selection from among the available schemes. Mutual funds are well-structured and closely-regulated entities, which hire investment professionals to invest and manage investors’ funds. Mutual funds are well-structured and closely-regulated entities, which hire investment professionals to invest and manage investors’ funds.

Mutual funds issue units to each investor based on the amount invested. Units of mutual funds are similar to shares issued by companies. For instance, if an investor invests Rs 5,000 in a new scheme of a mutual fund, which is offering units at Rs 10 per unit, he will receive 500 units in the scheme (Rs 5,000 / Rs 10). The mutual fund invests the money collected from unit-holders on their behalf. Income earned on these investments is distributed by the mutual fund among its investors in proportion to their holding in the scheme. For instance, taking the above example forward, if the scheme issues a total of 1 lakh units and earns a total income of Rs 1 lakh in a particular period, it would have earned Re 1 per unit issued (Rs 1 lakh / 1 lakh units). The investor, who had applied for 500 units, will be entitled to receive Rs 500 (income earned per unit – Re 1 x 500 units). Concept of Mutual Fund A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to

invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart Organization of a Mutual Fund Here are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:

Organisation of a Mutal Fund

Types of Mutual Fund Schemes Wide varieties of Mutual Fund Schemes exist to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry.

Mutual Fund Types Once we have reviewed the fund classes, we are ready to discuss more specific fund types. Funds are generally distinguished from each other by their investment objectives and types of securities they invest in. A. Broad Fund Types by Nature of Investments Mutual funds may invest in equities, bonds or other fixed income securities, or short term money market securities. So we have Equity, Bonds and Money Market Funds. All of them invest in

financial assets. But there are funds that invest in physical assets. For example, we may have Gold or other Precious Metal Funds, or Real Estate Funds. B. Broad Fund Types by Investment Objective Investors and hence the mutual funds pursue different objectives while investing. Thus, Growth Funds invest for medium to long term capital appreciation. Income Funds invest to generate regular income, and less for capital appreciation. Value Funds invest in equities that are considered under-valued today, whose value will be unlocked in the future. C. Broad Fund Types by Risk Profile The nature of a fund’s portfolio and its investment objective imply different levels of risk undertaken. Funds are therefore often grouped in order of risk. Thus, Equity Funds have a greater risk of capital loss than a Debt Fund that seeks to protect the capital while looking for income. Money Market Funds are exposed to less risk than even the Bond Funds, since they invest in short-term fixed income securities, as compared to longer-term portfolios of Bond Funds. Money Market Funds: Lowest rung in the order of risk level, Money Market Funds invest in securities of a short-term nature, which generally means securities of less than one-year maturity.

Gilt Funds: Gilts are government securities with medium to long-term maturities, typically of over one year (under one-year instruments being money market securities). Debt Funds (or Income Funds): Next in the order of risk level, we have the general category Debt Funds. Debt funds invest in debt instruments issued not only by governments, but also by private companies, banks and financial institutions and other entities such as infrastructure companies/utilities. Diversifies Debt Funds A debt fund that invests in all available types of debt securities, issued by entities across all industries and sectors is a properly diversified debt fund. A diversified debt fund is less risky than a narrow-focus fund that invests in debt securities of a particular sector or industry. Focused Debt Funds Some debt funds have a narrow focus, with less diversification in its investment. Examples include sector, specialized and offshore debt funds. Other examples of focused funds include those that invest only in Corporate Debentures and Bonds or only in Tax Free Infrastructure or Municipal Bonds. High yield Debt Funds

There are funds which seek to obtain higher interest rates by investing in debt instruments that are considered “below investment grade”. e.g. Junk Bond Funds.

Assured Return Funds – an Indian Variant The SEBI permits only those funds whose sponsors have adequate net-worth to offer assurance of return. For e.g. MIPs. Investors have some lock-in period.

Fixed Term Plan Series – Another Indian Variant These are essentially closed-end. These plans do not generally offer guaranteed returns. This scheme is for short-term investors who otherwise place money as fixed term bank deposits or inter corporate bonds. Equity Fund: As investors move from Debt Fund category to Equity Funds, they face increased risk level. No guarantee returns High potential for growth of capital

Types of Equity Fund

a) Aggressive Growth Fund Maximum capital appreciation Invests in less researched or speculative shares. Very volatile & riskier. b) Growth Fund Growth fund invest in companies whose earnings are expected to rise above average rate. e.g. Technology Fund Capital appreciation in 3 – 5 years Less volatile then aggressive growth fund. c) Specialty Fund They invest in companies that meet predefined criteria. i) Sector Funds Technology Fund Pharmaceutical Fund FMCG Fund ii) Offshore Funds Invest in equities in one or more foreign countries. iii) Small-Cap equity Funds Invest in shares of companies with relative lower market capital. d) Diversified Equity Funds

A fund that seeks to invest only in equities, except for a very small portion in liquid money market securities, bur is not focused on any one or few sectors or shares, may be termed a diversified equity fund. While exposed to all equity price risks, diversified equity funds seek to reduce the sector or stock specific risks through diversification. i) Equity Linked Savings Schemes: An Indian Variant Investment in these schemes entitles the investor to claim an income tax rebate, but usually has a lock-in period before the end of which funds cannot be withdrawn. e) Equity Index Funds An index fund tracks the performance of a specific stock market index. The objective is to match the performance of the stock market by tracking an index that represents the overall market. The funds invest in share that constitute the index and in the same proportion on the index. f) Value Funds Value Funds try to seek out fundamentally sound companies whose shares are currently under-prices in the market. Value Funds will add only those shares to their portfolios that are selling at low price earnings ratios, low market to book value ratios and are undervalued by other yardsticks.

Fund concentrate on future growth prospect having good potential. g) Equity Income Funds There are equity funds that can be designed to give the investor a high level of current income along with some steady capital appreciation, investing mainly in shares of companies with high dividend yields. Hybrid Funds – Quasi Equity/Quasi Debt: Many mutual funds mix these (money market, debt and equity) different types of securities in their portfolios. Such funds are termed “hybrid funds” as they have a dual equity/bond focus. Commodity Funds: While all of the debt/equity/money market funds invest in financial assets, the mutual fund vehicle is suited for investment in any other- for examples- physical assets. Real Estate Funds: Specialized Real Estate Funds would invest in Real Estate directly, or may fund real estate developers, or lend to them, or buy shares of housing finance companies or may even buy their securities assets. Funds in accordance of their risk level • Money Market Mutual Fund • Municipal bond fund

• Corporate bond funds • Mortgage funds 1 • Govt. bond funds • Index funds • Income funds • Balanced funds • Growth & Income funds • International funds • Precious metal funds • Growth funds • Aggressive funds.

Advantages of Mutual Fund •

Professional Management

•

Diversification

•

Convenient Administration

•

Return Potential

•

Low Costs

•

Liquidity

•

Transparency

•

Flexibility

•

Choice of schemes

•

Tax benefits

•

Well regulated

How You Can Invest in a Mutual Fund? There are two ways in which you can invest in a mutual fund. 1. One-Time Outright Payment If you invest directly in the fund, you just hand over the cheques and you get your fund units depending on the value of the units on that particular day. Let’s say you want to invest Rs 10,000. All you have to do is approach the fund and buy units worth Rs 10,000. There will be two factors determining how many units you get. Entry load This is the fee you pay on the amount you invest. Let’s say the entry load is 2.25%. Two percent on Rs 10,000* would Rs 225. Now, you have just Rs 9,775 to invest.

NAV

The Net Asset Value is the price of a unit of a fund. Let’s say that the NAV on the day you invest is Rs 30. So you will get 326.67 units (Rs 9800 / 30). 2. Periodic Investments This is referred to as a SIP (Systematic Investment Plan). That means that, every month, you commit to investing, say, Rs 1,000 in your fund. At the end of a year, you would have invested Rs 12,000 in your fund. Let’s say the NAV on the day you invest in the first month is Rs 20; you will get 50 units. The next month, the NAV is Rs 25. You will get 40 units. The following month, the NAV is Rs 18. You will get 55.56 units. So, after three months, you would have 145.56 units. On an average, you would have paid around Rs 21 per unit. This is because, when the NAV is high, you get fewer units per Rs 1,000. When the NAV falls, you get more units per Rs 1,000. 1. Is there a load? An exit load is a fee you pay the fund when you sell the units, just like the entry load is a fee you pay when you buy the units. Initially, funds never charged an entry load on SIPs. Now, however, a number of them do.

You will also have the check if there is an exit load. Generally, though, there is none. Also, if there is an entry load, an exit load will not be charged. An exit load may be charged if you stop the SIP mid-way. Let’s say you have a one-year SIP but discontinue after five months, then an exit load will be levied. These conditions will wary between mutual funds. 2. What is the Minimum Investment? If you do a one time investment, the minimum amount that you have to invest is Rs 5,000. If you invest via an SIP, the amount drops. Each fund has its own minimum amount. Some may keep it at least Rs 500 per month; others may keep it as Rs 1,000. [Only in Reliance mutual funds, you can invest as little as Rs. 100/- per month.] 3. How often does one have to invest? It would depend on the fund. Some insist the SIP must be done every month. Others give you the option of investing once in three months or once in six months. They also give fixed dates. So you will get the option of various dates and you will have to choose one. Let’s say you are

presented with these dates: 1, 10, 20 or 30. You can pick any one date. If you pick the 10th of the month, then on that day, the amount you have decided to invest in the fund has to be credited to your mutual fund.

4. How must the payment be made? You can opt for the Electronic Clearance Service from your bank; this means the mutual fund will, as per your instructions, debit a certain amount from your account every month. Let’s say you have a SIP of Rs 1,000 every month and you have chosen to invest in it on the 10th of every month. Under this option, you can instruct your mutual fund to directly debit your bank account of Rs 1,000 on the due date. If you don’t have the required money in your account, then for that month, no units will be allocated to you. But, if this continues periodically, the mutual fund will discontinue the SIP. You need to check with each mutual fund what their parameters are. Alternately, you can give cheques to your mutual fund. In this case, they may ask for five Post Dated Cheques upfront with your first investment.

Since these cheques are dated ahead of time, they cannot be processed till the date indicated. 5. Must I state for how long I want the SIP? Yes. You will have to state whether you want it for a year or two years, etc. If, during the course of this period, you realize you cannot continue with the SIP, all you have to do is inform the fund 15 days prior to the payout. The SIP will be discontinued. You can continue to keep your money with the fund and withdraw it when you want. 6. Do all funds offer SIP? No. Liquid funds, cash funds and floating rate debt funds do not offer an SIP. These are funds that invest in very short-term fixedreturn investments. Floating rate debt funds invest in fixed return investments where the interest rate moves in tandem with interest rates in the economy (just like a floating rate home loan). All types of equity funds (funds that invest in the shares of companies), debt funds (funds that invest in fixed-return investments) and balanced funds (funds that invest in both) offer a SIP. 7. Tax implications Let’s say you have invested in the SIP option of a diversified equity fund.

If you sell the units after a year of buying, you pay no capital gains tax. If you sell if before a year, you pay capital gains tax of 15%. Let’s say you invest through a SIP for 12 months: January to December 2007. Now, in March 2008, you want to sell some units. Will you be charged capital gains tax? The system of first-in, first-out applies here. So, the amount you invest in January 2007 and the units you bought with that money will be regarded as the units you sell in March 2008. For tax purposes, the units that you sell first will be considered as the first units bought. 8. How will an SIP help? When you buy the units of a fund, you may do so when the NAV is really high. For instance, let’s say you bought the units of a fund when the Bull Run was at its peak, leading to a high NAV. If the market dips after that, the value of your investments falls and you may have to wait for a long while to make a return on your investment. But, if you invest via a SIP, you do not commit the error of buying units when the market is at its peak. Since you are buying small amounts continuously, your investment will average out over a period of time.

You will end up buying some units at a high cost and some units a lower price. Over time, your chances of making a profit are much higher when compared to an one-time investment.

RESEARCH METHODOLOGY Exploratory design Exploratory research is usually conducted during the initial stage of the research process. It is conducted to clarify and define the nature of a problem. In our research we would collect information from individuals, talk to experts in this field and also refer to secondary data. Secondary data analysis Secondary Research is done in the initial stage of the project and before the survey. The main objective of secondary research is to

find out the matter which is related to our project. It can be done with the help of search on internet and by doing literature study. But here is done with the help of internet as well as by studying material which is provided by the company. Experience Survey It is done to get the various opinions by the individual experience person. This is done to give more information about the research topic and in which direction it should be. The person to whom I met has a experience of more than 15 years in the share trading and mutual fund. He provided us more information as I asked to him. The information is collected from 3-4 people in the field of security market. Primary data The primary data is collected by conducting a survey. The survey is a technique by which the individual vies be gathered with the help of the questionnaire. The questionnaire is prepared in such a manner so that it is filled by those respondents who invest their money in the security market. This questionnaire contained the all close ended questions so that the data is easy to analysis as well as it is suitable for the respondents. The questionnaire is related to the facility provided by the Reliance Money. The questionnaire is also prepared for those people who don’t invest their money in the stock market. This survey is done to analysis

the perception of respondent towards share trading and mutual fund to Reliance Money.

Sampling Design Target Population The target population is a proper source from which the data are to be collected can be identified. The target population for this project is the population of Lucknow whose age is more than 18 years and should be educated. Sampling Frame This is the list of persons from which a sample is drawn; it is also called the working population for the project. These are those persons who have their DMAT A/C and invest their money in the stock market or mutual fund. Sampling Method Here nonprobability sampling method is used; it is a sampling technique in which units of the sample are selected on the basis of personal judgment or convenience. Quota Sampling is a suitable to analysis the data on the bases of the family expenses which is mentioned in the demography of the questionnaire. The purpose of quota sampling is to ensure that the various subgroups in a population are represented on pertinent sample characteristics to the exact extent that the investigators desire. Survey technique

The survey technique is based on the questionnaire. The questionnaire is prepared after knew the different views by customers. The data is also collected on the net as well as various magazines are concerned to make the project in a better way. The questionnaire contained all types of questions related to share trading and mutual fund. The questionnaire is filled up by those customers who invest their money in share trading and Mutual fund. The data is analyzed using ms-excel and spss tools. Research Tools The tools which is used to analysis the data are ms-excel and msword. The table and graphs are prepared by using the ms-excel.

Objective of research; •

The main objective of this project is concerned with getting the opinion of people regarding demat account, Mutual Funds, and other financial products, to target them and create awareness while with the generation of leads.

• I have tried to explore the general opinion about the products and services provided by Reliance Money. It also covers why/ why not investors are availing the services of financial advisors.

•

Along with it a brief introduction to India’s largest financial intermediary, RELIANCE MONEY has been given and it is shown that what are demat a/c, mutual funds and life insurance and how they work.

Scope of the study: The research was carried out in Cuttack city only. I have visited people randomly nearby my locality, different shopping malls, small retailers etc. Data sources: Research is totally based on primary data. Secondary data can be used only for the reference.

Research has been done by primary data collection,

and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites and some special publications of R-MONEY.

Sampling: S  ampling 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

questionnaire prepared. S  ample size: The sample size of my project is limited to 100 only. S  ample design: Data has been presented with the help of pie charts. .

RESULTS OF THE STUDY 1. Preference of Investment

Fig.1 Result of Preference of Investment

up

the

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. 2. Awareness on Online Share Trading

Fig. 2 Result of Awareness of Online Share Trading

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

3. Preference of investing in stock market

The study shows that most of the people prefer to invest in stock market because of high risk and high return whereas some other try to capture the short term gain from investment. But a very few section of people invest because of the benefits they gain in tax. 4. Awareness of Reliance Money as a Brand

Fig.3 Result of Awareness of Reliance money as a Brand

This pie-chart shows that reliance money has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. This brand image should be further leveraged by the company to increase its market share over its competitors. 5. Awareness of Reliance Money Facilities

Fig .4 Result of Awareness of Reliance money Facilities

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. 5. Customers having Demat account in companies

9% 33%

23%

14%

7.

21%

Reliance India bulls Kotak Mahindra ICICI Direct others

Satisfaction Level among Customers with current

broker

Fig 5 Result of satisfaction level among customers with current broker

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.

8. Frequency of Trading

Fig 6 Result of Frequency of Trading

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

9. Percentage of earnings invested in Share Trading

Fig 7 Result of percentage of earning invested in share trading

This shows that people invest only upto 10% of their earnings in the stock market, again reiterating the volatile and nontransparent 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. 10. Rating of share trading companies 60

50 40

40 20 0

40 20

10

50 40

40 30

10

Reliance

ICICI dirct

kotak mahindra

others

lower

10

20

30

50

Medium

40

40

30

40

High

50

40

40

10

lower

Medium

High

11. Problems faced during trading

20%

20%

Network Problem Information Related Problem

10%

Manual operating problem

50%

Service provide problem

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

12. Describe yourself as a

18%

Risks taker 44%

Variety seeker Price conscious

26% 12%

Quality conscious

From the above graph I found that most of customers are mostly risk taker and price conscious and least number of customers is quality conscious and variety seeker. It suggests that the customers are ready to invest money in equity and commodity market which is more risky than mutual fund.

13. Rating of products of Reliance Money

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

14. Customer awareness for the different brokerage

company

Company ICICI direct Reliance Money Karvey Sharekhan

somewh

not

less

more

at

more

awar

aware 25

aware 35

aware 20

e 20

38 45 30

30 15 20

12 25 34

20 15 16

Awareness Chart

Number

50 40

more aware

30

somewhat aware

20

not more aware

10

less aware

0 icici direct

Reliance Money

Karvey

Sharekhan

Company

The awareness about various companies is tabulated above. It is shown in the bar chart that the maximum customers are aware of karvey Brokerage Company. The awareness towards ICICI Direct

and Sharekhan is nearly same. About 48% customers are aware about the Reliance money. Only 20% customer said that we don’t know the exactly the services provided by the Reliance Money.

15. How Customer do Share Trading

Yourself brokerage Company Friend Any experience person

21 65 4 10

You doshare trading through

10% 4%

21%

Yourself brokerage Company Friend

65%

Any experience person

The above pie chart shows that the nearly 65% customer do trading through the brokerage company. Only 21% customers are those who do share trading through their self. So it is beneficial for the brokerage company that customer believe on the brokerage company and don’t want to play with risk their self.

16.Preference toward Mutual Funds SA

A

N

D

SD

To minimize the risk Influenced by past

89

9

2

0

0

performance

56

29

9

6

0

Broker motivation For assurance &

35

20

25

16

4

security

81

12

4

3

0

100 90 80 70 60 50 40 30 20 10 0

SA A N D SD

To minimize the risk

Influenced by past performance

Broker motivation

For assurance & security

People invest their money in the mutual fund. It is shown in the bar chart that persons invest their money in mutual fund only to minimize the risk. Because investing money in mutual fund has a

less risk. Therefore 90% customer said that they prefer to invest money in mutual fund. People get more assurance and security by investing their money in mutual fund. Mostly people influenced by their past performance and people are not more motivated by broker when they invest in mutual fund. 17.In which type of mutual fund people invest their money

Growth Fund

56

Tax Saving Fund

26

Balanced Fund

10

Equity Fund

8

Any other

0

In which type of mutual fund customer invest mostly

10%

8%

0%

Growth Fund Tax Saving Fund Balanced Fund 56%

26%

Equity Fund Any other

It is shown in the above pie chart that nearly 56% people invest money in growth funds. After this people like to invest their money in Tax saving fund. People invest money in balanced fund and equity fund nearly 10% and 8% respectively. There is more chance to get less in growth fund but there is more security of money.

18.How much return customer think by investing money in share trading

Return

Number of customer

10%

0

11-20%

6

21-30%

26

31-40%

23

41-50%

33

above 50%

12

Number of customer

12%

0%6% 10% 26%

11-20% 21-30% 31-40%

33%

41-50% above 50% 23%

People invest money in shares to get more in lesser time than invest in fixed deposit and insurance. Now people becoming more aware about the market structure and sell their shares when they are in position to get 20-40% return. It is a very risky game and also very beneficial for the customer. Only those people invest their money in shares whose income is nearly Rs. 20000-30000 per month. 19.What people see before investing in share market?

Company Image

19

Company Performance

58

motivated by experience person

10

market cap of company

13

about investing company 70

Company Image

60 50

Company Performance

40 30

motivated by experience person

20

market cap of company

10 0 1

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

7. Services quality provided by the various company Company Better

Less Better

Less Poor

Poor

Name

Service

Service

Servic

Service

e ICICI direct Reliance

64

23

5

9

Money

34

46

4

16

Karvey Sharekha

58

19

13

10

n

49

18

27

6

Service Quality Respopnse 70 60 50 40 30 20 10 0

Better Service Less Better Service Less Poor Service Poor Service ICICI direct

Reliance Money

Karvey

Sharekhan

Company

For ICICI Direct, 64% said that it provides the better service and only 9% said that it provides the poor service. About Reliance Money, 34% said that it provides the better service, 46% said that it provide less good service and nearly 17% said that it provides the poor service. Therefore there is need to improve the service quality of reliance money. About Karvey, 59% said that it provides the good service and only 10% said that it provides the poor service but the market share of karvey is less. About Sharekhan,

49% said that it provide the better service and 8% said that it provide the poor service. It means that to give more assurance about the service of Reliance Money there is a necessary to provide better service to attract more customers. 8. When people start thinking over market No. of

Condition

Customer

After loosing the money Before loosing the money on the basis of increasing

59 5

trend Impact of any globalization

14

factor

22

When people start thinking over market

After loosing the money 22% Before loosing the money 14%

59% 5%

on the basis of increeasing trend Impact of any globalisation factor

It is shown in the above pie chart that 59% customer start thinking over market after loosing the money. If they think before losing the money in the market and invest money in a proper way then it can be very beneficial for them. Only 22% customers think

when they invest money and get more return from the market. The above table shows that only 14% are those who start thinking when there is an upward or downward trend in the stock market. 9. Factors on which people blame during loosing condition Knowledge level

24

own decision

13

market

47

company

16

Factors at which customer blame during loosing condition

16%

24% Knowlwdge level own decision 13%

market company

47%

It is shown in the above table and in the pie chart that market is biggest factor when customers loose their money in share market. Only 24% and 16% are those customers who think that their knowledge level and company is the factors during loosing condition. It means that most of people should have the proper knowledge of market structure.

10. Which is the better option to invest the money?

No. of

Better option

Customer

Mutual Fund

19

Fixed Deposit

37

Insurance

14

Share Trading

30

Which one is the better option to invest

30%

19% Mutual Fund Fixed Deposit Insurance Share Trading

14%

37%

The above chart shows that fixed deposit is the better is a good option to invest the money. It is a safest mode of investment and no chances of loosing the money. Therefore 37% people said that fixed deposit is a better option. Only 30% people said that share trading is a good option because in this people have more risk but can be get a more return. Mutual fund and Insurance are also not

a bad option to invest the money but it take some time to convert in large money. 11. Comparison of Reliance money against other brokerage company Provide better return to the

SA 67

A 21

N 2

D 0

SD 0

customer Brokerage charges are very

88

11

1

0

0

less Transparency of money to the

65

24

7

4

0

customer is high Security of money is high Easy to access online trading No charges if you do share

57 37 79

19 29 17

16 7 3

6 18 1

2 9 0

trading yourself Charge coupon strategy is

49

38

3

8

2

good Provide full satisfaction to the

41

18

14

23

4

customer Provide the information in

62

12

3

9

14

easy and better way More careful for his customer

19

48

6

18

9

100 90 80 70 60 50 40 30 20 10 0

SA A N D SD

Provide better return to the customer

Brokerage Transparency of charges are very money to the less customer is high

Security of money is high

Easy to access online trading

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

between

the

Reliance

money.

The

software

provided by the Reliance money is easy to access in comparison to others as well as have high speed.

90 80 70 60 50 40 30 20 10 0

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

It is shown in the above chart that it will not cut any charges if customers do share trading himself. The charge coupon strategy of reliance money is a very good and people are attracting towards this company due to these facility. There is some problem in the satisfaction level to the customer of reliance money. More than 20% customer said that it doesn’t care their customer after opening their DMAT A/C. Most of customers are satisfied with the information provided by the reliance money. 12. According to occupation Occupation Student Public Employee Private Employee Housewife Businessman

No. of Customer 9 19 37 0 35

No. of customer acc. to their occupation

9% 35%

19%

Student Public Employee Private Employee Housewife

0%

Businessman 37%

Private employees are the maximum number of customer who invests the money in share trading and mutual fund. These employee have the better salary and more educated and aware of the concept of share trading and mutual fund. After that 35% are the businessman who invests the money in stock market. Only 19% are public employees because their salary is less and they don’t take risk to invest money in share market and mutual fund. Only few students invest money because parents are not allowed them to invest money. But student are becoming more aware about the concept of share trading and they know work to do on internet. 13. According to the Family expenses Family Expenses upto 5000 5001-10,000

No. of Customer 14 37

10,001-20,000 20,001-30,000 30,001 and above

34 11 4

No. of Customer acc. to their family expenses

11%

4%

14%

upto 5000 5001-10,000 10,001-20,000

34%

37%

20,001-30,000 30,001 and above

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

and

conditions.

some

time gain

depending

upon

the

market

RECOMMENDATIONS The company is new one and subsidiaries of Reliance Capital and separated from it in the last year. The company penetrates its market share in a very fast way. The franchisees of Reliance money is increasing day by day in big cities where people are have ability to invest their money in stock market. But there is a need to concentrate on few places where it can come out from weak points. In India most of people have lot of money but they are not aware of these concept. Therefore there is need to spread the awareness among people through a proper channel. The following factors can help to improve the market share of reliance money. 1. The major factor on which company should concentrate is a

proper service provided to the customer. The customer is the king for the company. It is the customer by which the company is progressing. 2. It is providing their ad on TV in proper way but there is a need to improve the ad in print media like Hindi newspaper and some more magazines which is penetrating in the rural area.

3. The company should have the customer data in a proper way and

should

communicate

their

customer

weekly

or

fortnightly. 4. The company should take the written feedback about the services provided by the Reliance money franchisees. 5. It should provide the training to the maximum number of management student so that the awareness about the reliance Money products and brand image spread in a fast and in a right way.

CONCLUSIONS It

is

concluded

that

Reliance

money

is

improving

their

infrastructure and market share in a fast way. The above analysis shows that it is giving competitive to the other brokerage companies. Its brand image is increasing day by day in the mind of common man.

The maintenance charges of the Reliance

Money are far –far less than the other companies. People are more ready to give initial cost Rs. 500 for employee person and Rs, 750 for the businessman. After that there is not so much charges for the share trading. It is only company which shows the higher growth when market goes down. The service provided to the

customer is averaged. This is the only factor where there is a need of improvement of proper service. People know the company but they are less aware of the services provided by the company.

BIBLIOGRAPHY Books 1. Business research Methods

by

William G,

Zikmund 2. Marketing Management

by

Philip Kotler

3. Investments

by

Bodie, Kane &

Marcus

Magazines 1. Business Today 2. Business World

Newspaper 1. The Economic Times 2. Times of India 3. Business Standard

WEBLIOGRAPHY

1. www.reliancemoney.com 2. www.demataccount.com

3. www.traderji.com 4. www.sharemarketbasics.com 5. www.sharekhan.com

QUESTIONNAIRE I, the student of Jaipuria Institute of Management, Lucknow conducting a survey on the topic Share Trading and Mutual Fund “A Customer Perspective” Basis Reliance Money to analysis the customer trend in the security market. Thank you very much for your kind responses. 1. Do you invest your money in share trading and mutual fund? (a)Yes If Yes

(b) No

2. According to your awareness rank (1 to 4) the following brokerage company. 1- More aware, 4- Less aware Compan

ICICI direct

Reliance

Karvy

Share

y Rank

Money

khan

3. You get the information about share market and mutual fund through – (a) Magazine (e) other specify

(b) TV

(c) Internet

4. You do share trading through(a) Yourself (b) brokerage company person

(d) Friend and relative

(c) Friend

(d) any experience

6. You prefer invest your money in mutual funds- Tick () your agreement Where SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree and SD-Strongly Disagree SA A N D SD To minimize the risk Influenced by past performance Broker motivation For assurance & security 6. In which type of mutual fund do you invest? (a) Growth fund (b) Tax saving fund fund (e) Any other specifies

(c) balanced Fund d) Equity

7. Who influenced your decision to invest in Mutual Fund? (a) Broker others

(b) Friends and Family

(c) Advertisement

(d)

8. What brokerage charges are you currently paying? (a) 0.00-0.05 0.76 and above

(b) 0.06-0.25

(c) 0.26-0.50 (d) 0.51-0.75

(e)

9. Which of the following company do you know which provide the share trading facility? Please () Company Tick()

ICICI direct

Reliance Money

Karvy

Sharekhan

10. How much return do you think to get from share trading? (a) 10% (b) 11-20% (c) 21-30% (d) 31-40% (e) 41-50% (f) Above 50 11. What do you see before investing in share market? (a) Company image experience person

(b) company performance (d) market cap of company

(c) motivation by

12. According to you which one provides better service (Rank the following 1 to 4 where 1- Better service, 4- Poor Service Company

ICICI direct

Reliance Money

Karvy

Share khan

Rank 13. When do you start thinking over market, what is going to happen in near future? (a) After loosing the money the basis of increasing trend

(b) before loosing the money (d) globalization factor

(c) on

14. How much time do you give daily to analyze the market? (a) Up to 1 hour and above

(b) 2 hour

(c) 3 hour

(d) 4 hour

(e) 5

15. When you loose money then on which you blame? (a) Knowledge level Company

(b) your decision

(c) market

(d)

16. According to you which option is better to invest your money? (a) Mutual Fund Share trading

(b) Fixed Deposit

(c) Insurance

(d)

17. Do you make any portfolio before investing in share trading? (a) Yes

(b) No

18. Reliance Money attracts more customers against other brokerage company because Where SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree and SD-Strongly Disagree SA 1

Provide better return to the customer

2

Brokerage charges are very less

3 4

Transparency of money to the customer is high Security of money is high

5

Easy to access online trading

6 7

No charges if you do share trading yourself Charge coupon strategy is good

8

Provide full satisfaction to the customer

9

Provide the information in easy and better way More careful for his customer

1 0

A

N

D

SD

Demography Businessm Housewife an

Occupation

Studen t

Public employee

Private employee

Education

High school

Intermedi ate

Graduate

Post Graduate

Professiona l

Family Expenses/m onth

Up to 5,000

5,00110,000

10,00020,000

20,00130,000

30,001and above