Professional Documents
Culture Documents
2008-2010
DECLARATION
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
I Ashutosh Kandwal do hereby declare that the project
Ashutosh Kandwal
Regd No: - 0841333070
INSTITUTE OF BUSINESS
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
AND COMPUTER STUDIES
BHUBANESWAR
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
The project work is pursued as a part of MBA
(Marketing) Curriculum at INSTITUTE OF BUSINESS AND
COMPUTER STUDIES, Bhubaneswar. It is undertaken as a
traineeship at Reliance Money Ltd. The project is done under
expert supervision and guidance of Mr. Jyoti Ranjan Das
(Lecture in Marketing) and Miss.Priyambada mohanty
(Center Sales Manager, Reliance Money)
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
1. Product knowledge: This included the theoretical
knowledge about the field and products which needed to be
marketed.
CONTENT
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Certificate of Company
Faculty Guide Certificate
Declaration
Acknowledgement
Executive Summary
CHAPTER 1
Introduction 1
Scope of study 2
Objective of training 3
CHAPTER 2
Company profile 4
Board of Directors 6
Reliance ADA group 8
CHAPTER 3
Products and services 9
i. Reliance Life insurance 10
ii. Demat account services 24
iii. Reliance Mutual Funds 31
iv. Reliance General Insurance 41
CHAPTER 4
Methodology 46
Limitations 50
Learning 50
CHAPTER 5
Suggestions 51
Conclusion 52
Bibliography 54
Questionnaire 55
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Whether it’s retiring early, saving for children’s
education, paying off a loan or to live a secured and satisfied
life everyone has dreams they can achieve by investing their
savings. However, the question that arises is that, should one
leave his money tucked away in the bank or plough it into the
stock market where the potential for higher returns is greater
but the chances of losing money is higher? Deciding where to
invest depends on one`s attitude towards risk (one`s capacity
to take risk and one`s tolerance towards risk) and the
investment horizon and non-availability of guaranteed-return
investment products.
In such a scenario, investing in equity, which offers returns
that are higher than the inflation rate, help to build wealth and
to improve the standard of living. It is fine that stock market
fluctuates over time. At present as far as the world economy
is concerned it is on a boom. As soon as globalization and
liberalization has come into act it has well shaped the
economy. India has turned out to be the hot destination for the
money investors and this has resulted growth in the sensex .It
was never hoped before that BSE will ever touch the mark of
16000 points. But only due to the new economic opportunities
and the confidence of people in India’s economic future it has
been successful .Investing in equity is the way to earn money
and to fulfill the dreams. The risk involved with investing in
equity can be moderated by careful stock selection and close
monitoring.Reliance money deals with the product and
investment options are available in…
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
The scope of the study refers to the job that to know about the activities of the
organization. The study means that the analysis of the products of the company on
which he/she has to focus.
During the summer training the volunteer need to find out the corporate strategies of
the running company and the mile stone which the company has covered during its
journey. In the summer training, it is necessary for the student that he /she involve
with the experience guys to get the knowledge about the company. That is how the
company has got the success, Or if it is going in the loss, why.
In my training period I have found that the reliance group is the biggest group in
Indian companies. I felt that I can learn the more in the Reliance Life Insurance
Limited.
Reliance Life Insurance Limited is the part of the Reliance Capital Limited which is a
growing company in the financial products.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Frankly speaking, any job or the task, have the specific objective i.e. what is need and
what is the requirement of the particular work. In the same way my objective is also
to learn something from the summer internship program. It means that the training
program in any reputed company give the market knowledge of its subject matter of
study.
The right choice of the company in which a student has to do the training is also the
part of the learning and what he/she wants to learn in the summer training.
In the short span since the insurance sector was opened up, many companies have
literally dictated the market’s evolution. Catering to all age and income segments, the
company stated out with the traditional insurance policies that were easy to
understand, the idea was to entice customers used to LIC’s style of functioning.
Reliance money began exploring new areas; it introduced modern products, like Unit-
linked Product where return are linked to the market performance of the underlying
assets.
Reliance Money leads and virtually all parameters; size of agent force, number of
policies sold, total sum, total sum assured, premium income and productivity of
agents it has set exacting standards for its range of products, riders offered, quality of
information in promotional material and even in the insurance awareness events
organized.
What has been in favor of Reliance Money is the range of product in each
segment of life insurance-traditional, unit-linked and single premium option, that are
for retirement plan or child plan. With such a comprehensive bouquet, it caters to the
financial goals of a customer. Reliance Money a growing reputed company give the
good platform in selling of the product like insurance, Equity & commodities,
derivative, IPO’s, offshore investment, mutual fund, gold coins etc.
So the objective of study is to see in the basket of product and satisfaction of
customers with the company through research work in Bhubaneswar
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
.
Reliance Capital
Reliance Reliance
Reliance Reliance Reliance
Mutual fund General Insurance Consumer
Mutual Fund Life Insurance Money Finance
Reliance money is a part of the reliance Anil Dhirubai Ambani Group and is
promoted by Reliance capital, the fastest growing private sector financial services
company in India, ranked amongst the top 3 private sector financial companies in
terms of net worth.
Reliance money is a comprehensive financial solution provider that enables you to
carry out trading and investment activities in a secure, cost-effective and convenient
manner. Through reliance money, you can invest in a wide range of asset classes from
Equity, Equity and commodity Derivatives, Mutual Funds, insurance products, IPO’s
to availing services of Money Transfer & Money changing.
Reliance Money offers the convenience of on-line and offline transactions through a
variety of means, including its Portal, Call & Transact, Transaction Kiosks and at it’s
network of affiliates.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
• Success sutras of Reliance Money:
The success story of the company is driven by 8 success sutras adopted by it namely
• Mission statement:
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Anil Dhirubhai Ambani - Chairman
Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D
Ambani, 50, is the chairman of all listed companies of the Reliance ADA Group,
namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance
Natural Resources and Reliance Power. He is also Chairman of the Board of
Governors of Dhirubhai Ambani Institute of Information and Communication
Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice
Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest
private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief
Executive Officer, and was centrally involved in every aspect of the company's
management over the next 22 years. He is credited with having pioneered a number of
path-breaking financial innovations in the Indian capital markets. He spearheaded the
country's first forays into the overseas capital markets with international public
offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he
directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered
the 100-year Yankee bond issue for the company in January 1997.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Rajendra Chitale - Independent Director
Shri C. P. Jain
Shri C.P. Jain, 61, is the former Chairman and Managing Director of NTPC Ltd.
(National Thermal Power Corporation). Shri Jain has an illustrious career spanning
over four decades of contribution in the fields of financial management, general
management, strategic management and business leadership. He is a fellow member
of the Institute of Chartered Accountants of India with an advanced diploma in
Management and is a law graduate. Shri C. P. Jain joined the Board of NTPC in 1993
as Director (Finance), was elevated as Chairman & Managing Director in September
2000 and superannuated in March 2006. He is Chairman of the Global Studies
Committee of World Energy Council (WEC), world's largest energy NGO with nearly
hundred member-nations. He has been on several important committees of the
Government of India, latest being the 'Adhoc Group of Experts on Empowerment of
CPSEs'. He was Chairman of Standing Conference of Public Enterprises (SCOPE)
between April 2003 and March 2005. He is a Director on the Board of IL & FS
Infrastructure Development Corporation and, is also a member of the Audit Advisory
Board of the Comptroller and Audit General of India.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
• Reliance Life Insurance
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group is
India's fastest growing life insurance company and among the top 4 private sector life
insurers.
Reliance Life Insurance has a pan India presence and a range of products catering to
individual as well as corporate needs. Reliance Life Insurance has over 700 branches
and 1, 80,000 agents. It offers 26 products covering savings, protection & investment
requirements. Reliance Life Insurance will endeavor to attain a leadership position in
the market over the next few years, by further expanding and strengthening its
distribution network and offering a diverse array of products to suit the varied and
specific needs of individual customers.
An amount of money paid to someone (called beneficiary) when the Life Assured (in
whose name the insurance policy is taken) dies. This amount can be used to pay the
expenses related to Life assureds death or can be invested to generate income that will
replace your salary. Life Insurance is an important tool in any investors portfolio &
can be used for - wealth creation, asset building, provide for contingencies and
retirement planning.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Types of Life Insurance Policies
• Most Insurance policies are a combination of Savings & Protection.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Life Stage in Life Insurance
25-30
30-45 years 45 yrs and
Married
Couples with above
couples
18-25 children Matured
with no
(Unmarrie couple Retire
kids
d) d
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Need Analysis in life Stages
1.Go on a holiday
2.Buy a new Car Short Term
18yrs – Unmarried 3.Set up a new house Endowment
4.Set up Interiors
25yrs 5.Buy jewellery
Product
1.Retirement
Planning Profits or Unit
30yrs – Matured 2.Wealth transfer or Linked
couple saving vehicles
45yrs 3.Returns on
Endowment/
investment Deferred
4.Opting for annuities
guaranteed Product
1.Single Premium
1.Protection in case
you live long annuities
60yrs and Post 2.Protection for 2.Long term care
above Retirement spouse in case of
death
products
3.Wealth 3.Whole life
accumulation for products
children
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Products of Life Insurance
Life Insurance products are usually referred to as ‘plans’ of insurance. These plans
have two basic elements; one is the “Death Cover” providing for the benefits being
paid on the death of the insured person within a specified period. The other is the
“Survival Benefit” providing for the benefit being paid on survival of a specified
period.
• Plans of insurance that provide only death cover are called “Term
Assurance” Plans.
• Plans of insurance that provide only survival benefits are called “Pure
Endowment” Plans.
ULIPs
A ULIP is a life insurance which provides a combination of Life Insurance protection
and investment. Money can be invested in the following fund:- Equity Fund, Debt
Fund, Money Market Fund (Liquid Fund) and Balance Fund.
Annuities
Annuities are practically the same as pension. Pension provides periodical payments
to the employees, who have retired. They are paid as long as the recipient is alive.
Annuities are called the “reverse” of Life Insurance.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
• Protection Plans
Protect your family even when you’re not around by investing in Reliance Protection
Plans. Choose a limited period plan or a lifetime protection plan depending on your
needs. The latest Protection Plans are as below…
1. Reliance Term plan
2. Reliance Simple Term plan
3. Reliance Special Term plan
4. Reliance Credit Guardian plan
5. Reliance Special Credit Guardian plan
6. Reliance Endowment plan
7. Reliance Special Endowment plan
8. Reliance Connect 2 Life plan
9. Reliance Whole Life plan
10. Reliance Wealth + Health plan
11. Reliance Cash Flow plan
• Retirement Plans
Invest today in Reliance Retirement Plans and save money to enjoy life even after
retirement. You will never have to depend on another person or make any
compromises to maintain your current lifestyle. The latest Retirement Plans are as
below…
1. Reliance Total Investment Plan Series II – Pension
2. Reliance Golden Years Plan
3. Reliance Golden Years Plan Value
4. Reliance Golden Years Plan Plus
5. Reliance Wealth + Health plan
6. Reliance Automatic Investment Plan
7. Reliance Money Guarantee Plan
• Child Plans
Save systematically and secure your child’s future needs by investing in Reliance
Child Plans. You can always be there for your child when he or she needs you. The
Childs plans are as below…
1. Reliance Child plan
2. Reliance Secure Child plan
3. Reliance Wealth + Health plan
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Market Return Plan
Under This plan the investment risk in the investment portfolio is done by the
policyholder.
key features
• Twin benefit of market linked return and insurance protection
• A unit linked plan, different from traditional life insurance products with
maximum maturity age of 80 years.
• Option to create your own portfolio depending on your risk appetite.
• Choose from four different investment funds
• Flexibility to switch between funds
• Option to pay regular as well as single premium & top- ups
• Option to package your policy with accidental rider
• Flexibility to increase the sum assured
• Liquidity through partial withdrawals
How does this plan work
The premium paid by the client net of premium allocation charges is invested in
fund/funds of your choice and units are allocated depending on the price of units
for the fund/funds. The fund value is the total value of units that you hold in the
fund/funds. The mortality charges and policy administration charges are ducted
through cancellation of units whereas the fund management charge is priced in the
unit value.
Benefits
Life cover Assured: in case of unfortunate loss of life, the beneficiary will get sum
assured or fund value, whichever is higher. The client can choose the basic sum
assured within the minimum and maximum levels mentioned below.
Minimum sum Assured:
• Regular premium: annualized premium for 5 years or annualized premium
for half the policy term, whichever is higher.
• Single premium: 125% of the single premium.
Maximum sum Assured
No limit (50000 for age up to 12 years)
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Maturity Benefits
On survival to maturity the fund value on maturity will be paid out.
Rider Benefits
The Client can add the Accidental Death & Total and Permanent Disablement Benefit
Rider (available only with the regular premium option).
This benefit doubles the life coverage in case of accidental death or accidental total
and permanent disablement at a very nominal additional cost. The maximum cover is
Rs. 50, 00,000 per life.
In case of accidental death of the life assured during the policy term, the accident
benefit sum assured will be paid immediately in a lump sum.
In case of accidental total and permanent disablement, 1/10th of the accident benefit
sum assured will be paid at the end of each year for ten years. If the total and
permanent disablement has commenced, the accidental death benefit cover ceases.
In case of maturity or on death of the life assured before payment of all installments
of accidental total and permanent disablement benefits, the remaining unpaid
installments of any will be paid in one lump sum along with death or maturity benefit.
Accidental total and permanent disablement means disability caused by bodily injury,
which causes permanent inability to perform any occupation or to engage in any
activities for remuneration or profits. This disability should last for at least 6 months
before being eligible for accidental total and permanent disablement benefits.
Accidental total and permanent disablement includes loss of both arms and both legs
or one arm and one leg or of both eyes. Loss of arms or legs means dismemberment
by amputation of the entire hand or foot. Loss of eyes means entire and irrecoverable
loss of sight.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
They are:
1. Capital Secure Fund:
The investment objective of this fund is to maintain the value of all contributions (net
of charges) and all interest additions. This fund offers steady return for little risk. The
risk profile of this fund is low. Investments would be 100% in bank deposits,
government bonds and debt instruments that offer financial security.
Further, allocation in Capital Secure Fund for a policy is subject to a maximum limit
of 40% at any time.
2. Balanced Fund:
The investment objective of this fund is to provide you with investment returns, which
exceed the rate of inflation in the long term while maintaining a low probability of
negative investment returns. Here, a major portion of your funds are invested in Fixed
Securities while a small percentage is invested in the equity market, which is exposed
to market movements. The risk profile of this fund is low to medium.
Investments would be at least 80% in fixed interest securities and maximum 20% in
equities.
3. Growth Fund:
The investment objective of this fund is to provide you with investment returns, which
exceed the rate of inflation in the long term while maintaining a moderate probability
of negative investment returns. A greater portion of your funds are invested in fixed
securities while a small percentage is invested in the equity market, which exposed to
market movements. The risk profile of this fund is medium to high.
Investment would be at least 60% in fixed interest securities and maximum 40% in
equities.
4. Equity Fund:
The investment objective of this fund is to provide policyholders with high exposure
to equities and the possibility of investment returns, which generate a high real rate of
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
return in the long term while recognizing that there is a significant probability of
negative investment returns in the short term.
This fund offers a totally equity based investment option. Your returns depend
entirely upon the performance of the equity market. The risk profile of this fund is
high. The higher risk of this portfolio means that expected returns would also be
higher.
Investment would not exceed 30% in bank deposits and may be up to 100% in
equities.
Value of Units:
The market value of assets plus/less expenses
incurred
In the purchase/sale of assets plus current assets plus
Any accrued income net of fund management charges
Less current liabilities less provision
Unit Value =
Total number of units on issue (before any new units
are allocated/redeemed.)
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Maximum policy term 40 years
(The premium allocation charge for single premium & top – ups is 2%.)
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Revision of charges:
The fund management charges are subject to revision at any time, but hey will not
exceed 2% p.a. for the capital secure fund and 2.5% p.a. for the other funds.
Any changes made to the charges under this policy will be subject to IRDA approval.
5. Switching Charge:
1% of the amount switched, with a maximum of Rs. 1,000/- per switch.
6. Mortality Charges:
The Mortality charges, based on your attained age, are determined using 1/12 th of the
charges are different.
7. Surrender Charge:
This charge is levied on the unit fund at the time of surrender of the policy as under:
In case the policyholder disagrees with any of the terms and conditions of the policy,
he may return the policy to the company within 15 days of its receipt for cancellation,
stating his/her objections in which case the company will refund an amount equal to
the non allocated premium plus the charges levied by cancellation of units plus fund
value as on the date of receipt of the request in writing for cancellation, less the
proportionate premium for the period the company has been on risk and the expenses
incurred by the company medical examination and stamp duty charges. If the risk
acceptance date falls within cooling off period, then on cancellation RLIC shall pay
fund value less of charges.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Overview of Demat Account.
This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a demat account for share trading above 500 shares. As of April 2006, it
became mandatory that any person holding a demat account should possess a
Permanent Account Number (PAN), and the deadline for submission of PAN details
to the depository lapsed on January 2007.
Procedure
1. Fill demat request form (DRF) (obtained from a depository participant or DP with
whom your depository account is opened).
2. Deface the share certificate(s) you want to dematerialize by writing across
Surrendered for dematerialization.
3. Submit the DRF & share certificate(s) to DP. DP would forward them to the
issuer / their R&T Agent.
4. After dematerialization, your depository account with your DP would be credited
with the dematerialized securities.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
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, IPO’s
offshore investments or prefer to invest in mutual funds, life & general insurance
products or avail money transfer and money changing services, you can do it all
through reliance money.
Simply open a reliance money account and enjoy the convenience of handling all your
key financial transactions through this one window.
• Its convenient
You can access reliance money’s services through
• The internet
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
• Transaction kiosks
• The phone (call & transact)
• Our all – India network of associates
On an assisted trade (through the call centre or our network of associates) a charge of
Rs 12 per executed trade will be applicable.
• Its Safe
Your account is safeguarded with a unique security number that changes every 32
seconds. This number works as a dynamics password to keep your account extra safe.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
• Tools that help you plan your investments, tax, retirement, etc. in the personal
finance section
• Risk Analyzer for analysis of your risk profile
• Asset allocators to build an appropriate investment portfolio
• Innovative use of technology for facilitating convenient trading/investments –
Reliance Money Provide the kiosks (similar to ATM’s) Facilities, to their customer
through which the customers can trade on available kiosks at the particular Branch of
Reliance Money. The company is going to open these kiosks in the market as the
ATM’s of the Banks.
Insta Trade
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Fast Trade
Easy trade
The benefits
• A safe and convenient way to hold securities;
• Immediate transfer of securities;
• No stamp duty on transfer of securities;
• Elimination of risks associated with physical certificates such as bad delivery,
fake securities, delays, thefts etc.;
• Reduction in paperwork involved in transfer of securities;
• Reduction in transaction cost;
• No odd lot problem, even one share can be sold;
• Nomination facility;
• Change in address recorded with DP gets registered with all companies in
which investor holds securities electronically eliminating the need to
correspond with each of them separately;
• Transmission of securities is done by DP eliminating correspondence with
companies;
• Automatic credit into demat account of shares, arising out of
bonus/split/consolidation/merger etc.
• Holding investments in equity and debt instruments in a single account.
Required Documents
The extent of documentation required to open a demat account may vary according to
your relationship with the institution. If you plan to open a demat account with a
bank, a savings, current and, or other account for which the holder have been issued a
check book, such holder has an edge over the non-account holder. In fact, banks
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
usually offer additional incentives to customers who open a demat account with them.
Along with the application form, your photographs (with co-applicants) and proof of
identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client
agreement to be executed on non-judicial stamp paper. Here is a broad list:
For proof of identification and, or address self-attested facsimile copies of PAN card,
Voter’s ID, Passport, Ration card, Driver’s license, Photo credit card, Employee ID
card, Bank attestation, latest IT returns and, or latest Electricity/Landline phone bill
are sufficient. While they only ask for photocopies of the documents, they will need
the originals for verification.
Points To Remember
1. Only securities admitted by NSDL can be dematerialized. The list is available
with your DP.
2. Only securities registered in the name of the account holder can be
dematerialized.
3. Dematerialization is normally completed within 15 days after the share
certificates have reached the issuer/ their R&T Agent. Thus it may take you a
month from the date you hand over shares, to receive demat credit.
4. Dematerialization would be done only when the issuer / their R&T Agent is
satisfied of genuineness of securities & ownership status.
5. All the joint holders should sign the DRF.
6. The pattern of holding in the DRF should match the pattern of holding on the
share certificate & the pattern in which account is opened.
7. Demat requests with name(s) not matching exactly with the name(s) appearing
on the certificates merely on account of initials not being spelt out fully or put
after or prior to the surname, would be processed, provided the signature(s) of
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
the client(s) on the DRF tallies with the specimen signature(s) available with
the issuer/ their R & T agent.
8. If the signature in the DRF does not match with the signature available with
the issuer/ their R & T agent, the issuer/ their R & T agent may at the time of
demat confirmation, ask for additional documentation (like bank attestation/
notarisation, etc.) to prove that the certificate belongs to the person who
forwarded the DRF.
9. In case there is any problem in processing the DRF, contact your DP and if he
cannot resolve the problem you may contact NSDL.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
A mutual fund is a common pool of money into which investors place their
contributions that are to be invested in accordance with a stated objective. The
ownership of the fund is thus ‘joint’ and ‘mutual’; the fund belongs to all investors
Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai Ambani Group,
is India's leading Mutual Fund, with average Assets under Management of Rs. 90,813
crores for the month of June 2008, and an investor base of over 6.7 million. Reliance
Mutual Fund offers investors a well rounded portfolio of products to meet varying
investor requirements. Reliance Mutual Fund has a presence in 300 cities across the
country and constantly endeavors to launch innovative products and customer service
initiatives to increase value to investors. Reliance Mutual Fund schemes are managed
by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance
Capital Ltd.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Sector Funds
Diversified Equity
Funds
R Balanced Funds
e MIPs
t
Gilt Funds
u
r Income Funds
n
s Floaters
Money Market Funds
Risk
• Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It may
include a sales load.
• Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may include a
back-end load. This is also called Bid Price
• Redemption Price
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Is the price at which open-ended schemes repurchase their units and close-ended
schemes redeem their units on maturity? Such prices are NAV related.
• Sales Load
Is a charge collected by a scheme when it sells the units. Also called, ‘Front-end’
load. Schemes that do not charge a load are called ‘No Load’ schemes
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Dividend Policy: Dividend will be distributed from the available distributable
surplus after the deduction of the divided distribution surplus after the deduction of
the dividend distribution tax and the applicable surcharge, if any. The mutual fund is
not guaranteeing or assuring any dividend. Pease read the offer document for details.
Further payment of all the dividends shall be in compliance with SEBI circular No.
SEBI/IMD/CIR No. 1/64057/06 dated 4/4/06.
Applicable NAV : Sale of units by reliance mutual fund: in respect of valid
applications received up to 3 p.m. by the mutual fund alongwith a local cheque or a
demand draft payable at par at the place where the application is
received, the closing NAV of the day on which application is received shall be
applicable.
Repurchase including Switch-out: in respect of valid applications received
upto 3 pm by the mutual fund, same day’s closing NAV shall be applicable. In respect
of valid applications received after 3 p.m. by the mutual fund, the closing NAV of the
next business day shall be applicable.
Daily net Asset Value(NAV) publication: the NAV will be declared on all
working days and will be published in 2 newspaper. NAV can also be viewed on
www.reliancemutualfund.com and www.amfiindia.com .
Tax Benefits to the mutual fund: Reliance Mutual Fund is a Mutual fund
registered with the securities & exchange board of India and hence the entire income
of the mutual fund will be exempt from income tax in accordance with the provisions
of section 10(23D) of the income tax act, 1961. The mutual fund will receive all
income without any deduction of tax at source under the provisions of section 196(iv)
of the act.
An exemption has been granted under the finance (No.2) act, 2004 to open ended
equity oriented mutual funds from paying distribution tax on income distributed
without any time limit, effective from 1 April 2004.
• Lump sum: In Lump sum the investment is only one times that
is of Rs. 5,000. and if the investment is monthly then the investment will be 6,000/-.
In the above chart, we can see how if we start investing Rs.1000 per month then what
return we’ll get for the total investment of Rs. 12000. There is reliance diversified
power sector retail giving the maximum returns of Rs. 2524.07 per year which comes
to 21% roughly. Next we can see if anybody would have undertaken the SIP in
Principal would have got returns of app. 18%. We can see reliance regular savings
equity, DWS investment opportunities and BOB growth fund giving returns of
13.20%, 14.92%, and 14.74% respectively which is greater than any other monthly
investment options. Thus we can easily make out how SIP is beneficial for us. Its
hassle free, it forces the investors to save and get them into the habit of saving. Also
paying a small amount of Rs. 1000 is easy and convenient for them, thus putting no
pressure on their pockets.
Now we will analyze some of the equity fund SIP s of Birla Sunlife with BSE 200 and
bank fixed deposits In a tabular format as well as graphical.
The concept of mutual funds in India dates back to the year 1963. The era between
1963 and 1987 marked the existence of only one mutual fund company in India with
Rs. 67bn assets under management (AUM), by the end of its monopoly era, the Unit
Trust of India (UTI). By the end of the 80s decade, few other mutual fund companies
in India took their position in mutual fund market.
The new entries of mutual fund companies in India were SBI Mutual Fund, Canbank
Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of
India Mutual Fund.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
By the end of 1993, the total AUM of the industry was Rs. 470.04 bn. The private
sector funds started penetrating the fund families. In the same year the first Mutual
Fund Regulations came into existence with re-registering all mutual funds except
UTI. The regulations were further given a revised shape in 1996.
Kothari Pioneer was the first private sector mutual fund company in India which has
now merged with Franklin Templeton. Just after ten years with private sector players
penetration, the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund
companies in India in which some are as below.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Terms and conditions
• This facility offered only to the investors having bank accounts in selected
cities which are specific in the form of the SIP.
• Submit the following document at least 21 working days before the first SIP
date for ECS (Electronic clearing Service).
• The first SIP cheque should be issued from the same bank account which is to
be debited under ECS for subsequent installments.
• The bank account provided for ECS (Debit) should participate in local MICR
clearing.
• SIP auto debit facility is available only on specific dates of the month i.e. 2 nd
or 10th or 18th or 28th.
• The investor agrees to abide by the terms and conditions of ECS facility of
Reserve bank of India.
• An investor can opt for monthly or quarterly frequency.
• Only one SIP per month or per quarter is permitted per folio/account.
• Minimum investment amount – monthly SIP option – 60 installments of Rs.
100/- each or 12 installment or Rs. 500/- each or 6 installments of Rs. 1000/-
each and in multiples of Re.1/- thereafter.
• The gap between the 1st cheque/ installment & the 2nd cheque / installment
should be at least 21working days. However subsequent cheques should have
a gap of at least a month or a quarter depending upon the frequency chosen.
• Liquidity: It's easy to get your money out of a mutual fund. Write a check,
make a call, and you've got the cash.
• Convenience: You can usually buy mutual fund shares by mail, phone, or
over the Internet.
• Low cost: Mutual fund expenses are often no more than 1.5 percent of your
investment. Expenses for Index Funds are less than that, because index funds
are not actively managed. Instead, they automatically buy stock in companies
that are listed on a specific index
• Transparency
• Flexibility
• Choice of schemes
• Tax benefits
• Well regulated
Mutual funds have their drawbacks and may not be for everyone:
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
• No Guarantees: No investment is risk free. If the entire stock market declines
in value, the value of mutual fund shares will go down as well, no matter how
balanced the portfolio. Investors encounter fewer risks when they invest in
mutual funds than when they buy and sell stocks on their own. However,
anyone who invests through a mutual fund runs the risk of losing money.
• Fees and commissions: All funds charge administrative fees to cover their
day-to-day expenses. Some funds also charge sales commissions or "loads" to
compensate brokers, financial consultants, or financial planners. Even if you
don't use a broker or other financial adviser, you will pay a sales commission
if you buy shares in a Load Fund.
• Taxes: During a typical year, most actively managed mutual funds sell
anywhere from 20 to 70 percent of the securities in their portfolios. If your
fund makes a profit on its sales, you will pay taxes on the income you receive,
even if you reinvest the money you made.
• Management risk: When you invest in a mutual fund, you depend on the
fund's manager to make the right decisions regarding the fund's portfolio. If
the manager does not perform as well as you had hoped, you might not make
as much money on your investment as you expected. Of course, if you invest
in Index Funds, you forego management risk, because these funds do not
employ managers
Reliance General Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group
and a Subsidiary of Reliance Capital, is one of the first non-life companies to get the
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
license from the IRDA. Reliance General Insurance is India's fastest growing general
insurance company and the top 3 private sector insurers.
Reliance General Insurance has 200 branches across 171 cities and over 20,000
intermediaries. Reliance General Insurance offers an exhaustive range of insurance
products that covers most risks including Auto, Health, Property, Marine, Casualty
and Liability. Insurance Indemnifies Assets & Income. Every Asset has a value and
generates Income to its Owner. There is a normally expected Life-time for the Asset
during which time it is expected to perform. If the Asset gets lost earlier, being
destroyed or made Non-functional through an Accident or other unfortunate event the
Owner is Prejudiced. Insurance helps to reduce CONSEQUENCES of such Adverse
Circumstances which are called Risks
• Insurance is the SCIENCE OF SPREADING OF THE RISK. It is the system
of spreading the losses of an Individual over a group of Individuals
• Insurance is a Method of sharing of financial losses of a FEW from a
COMMON FUND formed out of Contribution of the MANY who are equally
exposed to the same loss
• What is UNCERTAIN for an Individual becomes a CERTAINTY for a
Group. This is the basis of All Insurance Operations. Thus INSURANCE
CONVERTS UNCERTAINTY TO CERTAINTY
RGICL PRODUCTS
HEALTH
• Individual Mediclaim Insurance Policy
• Group Mediclaim Insurance Policy
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
• Oversees Travel Care Insurance Policy
• Reliance Health Wise Policy (inclusive of PED & Critical Illness) – NEW
- a specialized retail product
PERSONAL ACCIDENT
• Personal Accident Insurance (Individuals) Policy
• Group Personal Accident Insurance
FIRE
• Standard Fire and Special Perils Policy
• Industrial All Risks Insurance Policy
• Consequential Loss (Fire) Insurance Policy
ENGINEERING
• Erection All Risks/Storage-cum-Erection Insurance Policy
• Contractor’s All Risks Insurance Policy
• Contractor’s Plant and Machinery Policy
• Machinery Breakdown Insurance Policy
• Machinery Loss of Profits Insurance Policy
• Boiler & Pressure Plant Insurance Policy
• Electronic Equipment Insurance Policy
MARINE
• Marine Cargo Insurance Policy
• NEW - Marine Turnover based Policy
• NEW - Multi Transit Policy
MOTOR
• Private Car Comprehensive Insurance Policy
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
LIABILITY
• Directors and Officers Liability Insurance Policy
• Public Liability (Act) Insurance Policy
• Public Liability Insurance Policy
• Product Liability Insurance Policy
• Professional Indemnity Insurance Policy
• Workmen’s Compensation Insurance Policy
The physical structure of your shop (under section 1A) and the contents therein (under
section 1B) can be covered against fire and allied perils. These comprise-
• Fire
• Lightning
• Explosion / implosion
• Aircraft Damage
• Riot, Strike and Malicious Damage
• Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, and
Inundation
• Impact Damage
• Subsidence and landslide including Rockslide demolition, construction,
structural alterations or repair of any property or ground works or excavations
• Bursting and / or overflowing of water tanks, apparatus and pipes.
• Missile testing operations
• Leakage from automatic sprinkler installations
• Bush fire
• Terrorism cover (optional)
Policy exclusions
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
At reliance general insurance, we would like our policy to be as transparent as
possible. To ensure that you do not face any unpleasant surprises when you make a
claim, we would like you to know some of the major exclusions under the policy.
• Loss or damage due to war and nuclear perils
• Damage to property due to pollution and contamination
• Loss or damage due to wear and tear, gradual deterioration or slowly
developing flaws
• Consequential loss of any kind
• Willful act or gross negligence on the part of the insured
Other Services
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
We were supposed to operate from reliance money Nehru
place branch. We were made aware about all the products
Reliance Money was providing with a more stress on their core
product i.e. Demat account.
TARGETS
The time duration of the project is 2 months starting from
1 July and ending on 30 t h August. We were given targets to
st
• 1Demat Accounts
• 1SIP or Mutual Fund worth Rs10,000
• Life Insurance Premium worth Rs1,00,000
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Fig6.1 The Constructive Factors of Tele
calling
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Fig6.2 The Customers Sales
Cycle
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Weakness Strength
• Inexperienced Staff • Co-operative and
• Low awareness due to lack Experienced Branch
of advertisement. Managers
• Lack of loyal clientage • Good Database
• Developing product. • Reliance Brand
• Low pricing
Opportunity Threat
• Untapped Market • Reach
• Increased spending power • Stiff competition from
• Changing Mindset of existing players in the
Customers market
• Unpredictable Sensex • Better products
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
• Helping the customers do the Financial Planning for
future.
1. Cold Calling
• Voice and accent plays a major role.
• The right time to call a customer cannot be decided, as
the customer may in a different mood at the time of
calling.
• Time consuming
• G5
2. Corporate
• Time consuming
• Contacts with higher authorities play a major role
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should
be made to realize that ignorance is no longer bliss and what they are losing by not
investing.
Mutual funds offer a lot of benefit which no other single option could offer. But most
of the people are not even aware of what actually a mutual fund is? They only see it as
just another investment option. So the advisors should try to change their mindsets.
The advisors should target for more and more young investors. Young investors as
well as persons at the height of their career would like to go for advisors due to lack
of expertise and time.
The advisors may try to highlight some of the value added benefits of Mutual funds
such as tax benefit, rupee cost averaging, and systematic transfer plan, rebalancing
etc. these benefits are not offered by other options single-handedly. So these are
enough to drive the investors towards mutual funds. Investors could also try to
increase the spectrum of services offered.
Now the most important reason for not availing the services of advisors was spotted
was being expensive. The advisors should try to charge a nominal fee at the
beginning. But if not possible then they could go for offering more services and
benefits at the existing rate. They should also maintain their decency and follow the
code of ethics so that the investors could trust upon them. Thus the advisors should try
to attract more and more persons and turn them into investors and finally their clients.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Based on the above SWOT analysis and study of the available data I
have come to the following conclusions:
HUGE POTENTIAL:
• All though relatively new entrants in the market, Reliance is slowly
but surely gaining a strong hold because it is finally able to grasp
the investment climate in Delhi. Secondly the branch managers at
all the branches are very knowledgeable with a lot of experience in
the financial markets so under their leadership can definitely
expand its base
• Right now Reliance is at its nascent stage and will surely grab the
major market under its belt very soon like in other fields.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
for them, which means it requires a lot of conviction on part of the
executives.
• In the past few years there has been a tremendous inflow of funds
in the Indian market which has lead to the sky rocketing SENSEX.
In fact there has been a tremendous response from the investors not
only in shares but mutual funds as well. The Rs5700Cr infused in
the market through the Reliance Equity mutual Funds is an
example of the growing trust of investors who earlier shied from
such investments due to stock market fiascos like the Harshad
Mehta scam or the US64 disaster in which investors lost huge
amounts of money as well as their trust in financial instruments.
• With the FDI limits being relaxed, a lot of avenues will open up in
the insurance sector and insurance companies are expected to come
up with new plans with a great deal of customization and
flexibility.
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
By the Help of Manuals
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Customer Detail Form
Name: …………………………….
Age: ……………………………
Address: ……………………………
Contact no: …………………………..
QUESTIONNAIRE
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar
Customers signature
…………………………
Ashutosh Kandwal
Regd.0841333070
IBCS,Bhubaneswar