Customer Satisfaction at Reliance Money, Ajmer

A project Report submitted in partial fulfillment of the requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION

Affiliated to Punjab Technical University, jalandar

Submitted to Ms. Manoj Mittal

Submitted by MBA 4
th

Deepak Semester

ACKNOWLEDGEMENTS

I take this opportunity to express my gratitude to all the people who have guided and helped me directly or indirectly in the course of completion of my project.

I feel immense pleasure to express my profound thanks to my guide Ms. Hina Khan (HR Manager), who gave me an opportunity to do my summers at RELIANCE Money.

I am thankful to my Faculty Guide Ms Manoj Mittal (Lecturer) for her constant support and guidance. Her valuable suggestions have helped me to complete my project successfully.

Deepak

(i)

SUMMARY
The basic objective of any financial services company would be to provide an absolute tailor made products and services to the customer and to retain them into the organization, but to retain a particular customer is not easy because customer expectations change by time and it becomes a tough job for the companies to curb the needs of their customers. Now with the case of asset management company which is getting its pace and a lot of companies are emerging as players, here a study has been undertaken with regards to RELIANCE MONEY where study looks into the expectation of the customers regarding mutual funds and issues relating to customers expectation. The need for this research is to emphasis the expectations of customer of mutual funds and how the company in contrast to the expectations is performing.

This research is conducted to understand the customers perception towards mutual fund. Till yesterday people had very less knowledge for mutual funds because brokerage companies in India have not made efforts to expand the market. They have been doing business with the same clientele. There is also a lack of investor awareness as far as markets are concerned. The Harshad Mehta scam and various other scams have created a bad impression in people's minds and this need to be changed. Just to put things in perspective, India has 330 million bank accounts. The mutual fund industry has 30 million unique folios. Unfortunately, in the broking industry, the number of people with Demat accounts has continued to stagnate at 5.85 million in the last 10-12 years, which is worrisome. Every industry in India has grown over the last 10 years except this one. Whatever retail participation exists is coming from bigger cities such as Mumbai and Delhi. The services have not reached bottom-of-the-pyramid towns. Reliance is conducting investor awareness campaigns every Saturday at Reliance money centers.

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 realized is 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.

(ii)

CONTENTS

S. No.

Topic

Page no.

Acknowledgement Summary

(i) (ii)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Introduction Purpose of study Objectives Limitations of Study Research Methodology Industry Profile Company Profile SWOT analysis of the organization Analysis Findings and suggestions Conclusions & Recommendations

2 3 4 5 6 7 15 24 28 38 40

Annexure Questionnaire Bibliography (i) (iii)

INTRODUCTION, OBJECTIVES & RESEARCH METHODOLOGY

INTRODUCTION

Customer satisfaction is a measure of how products and services supplied by a company can meet the customers expectations.

Customer satisfaction is still one of the single strongest predictors of customer retention. Its considerably more expensive to attract new customers than it is to keep old ones happy. So measuring customer satisfaction is very crucial.

With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path for future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer and helps in improvements in the processes used within the company.

PURPOSE OF THE STUDY

The main purpose of the study is to know the expectations of those investors who invested in RELIANCE mutual funds and the satisfaction levels of investors with the services provided by RELIANCE money, Ajmer.

In the present competitive environment it is very crucial for every business firm to ensure satisfaction to its customers. According to one survey it was found that it costs five times more to attract a new customer than to retain an existing customer.

Here the main purpose of the survey is to know the various factors that are very important in satisfying the customers needs and to know how RELIANCE money is ensuring its customers satisfaction.

OBJECTIVES

The following are the objectives of the Management project.

To understand the different investment options provided by RELIANCE

MONEY through its mutual fund schemes.

To know the investors expectations on mutual funds offered by RELIANCE

MONEY.

To know the various services provided by RELIANCE Money to its investors.

To study the satisfaction levels of customers of mutual funds in RELIANCE

MONEY.

LIMITATIONS

As the data was collected through questionnaire, there are chances of biased information provided by the respondent. The study is confined to the existing customers of RELIANCE MONEY only. The survey will be limited only to Ajmer city. The time duration of the study through questionnaire was 12 days, which is less to cover 30 % of total customers which is an ideal size for a sample.

RESEARCH METHODOLOGY

Data for the survey is collected through:

Primary sources

Observation of customers responses and feed back in Reliance Money office.

Using structured questionnaire for the existing customers.

Secondary Sources

Company Brochures Company Website Books Internet

Sample size: sample size for the survey is 100.

Type of sampling: stratified sampling technique is used for collecting the

primary data. The data is collected only from RELIANCE customers.

Methods used for analysis:

will be used in analyzing the data.

bar charts and pie charts are the tools that

6

INDUSTRY PROFILE

INTRODUCTION TO MUTUAL FUND INDUSTRY

The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry in the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets under Management (AUM) were Rs. 67bn. The private sector entry to the fund family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of 1,540 bn. Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking industry. The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling. The mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under. First Phase - 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under management. Second Phase - 1987-1993 (Entry of Public Sector Funds) Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92).

LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under management.
8

Third Phase - 1993-2003 (Entry of Private Sector Funds) With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds. Fourth Phase - since February 2003 This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as on January 2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private

sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.
9

Mutual Fund Operation Flow Chart

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:

10

Mutual funds in INDIA have a 3-tier structure of Sponsor Trustee AMC. Sponsor is the promoter of the fund. Sponsor creates the AMC and the trustee company and appoints the Boards of both these companies, with SEBI approval. A mutual fund is constituted as a Trust A trust deed is signed by trustees and registered under the Indian Trust Act. The mutual fund is formed as trust in INDIA, and supervised by the Board of Trustees. The trustees appoint the asset management company (AMC) to actually manage the investors money. The AMCs capital is contributed by the sponsor. The AMC is the business face of the mutual fund.
Investors money is held in the Trust (the mutual fund). The AMC gets a

fee for managing the funds, according to the mandate of the investors.

 Sponsor should have at-least 5-year track record in the financial services business and should have made profit in at-least 3 out of the 5 years. Trustees are appointed by the sponsor with SEBI approval. At-least 2/3 of trustees should be independent. At-least of the AMCs Board should be independent members. An AMC of one fund cannot be Trustee of another fund. AMC should have a net worth of at least Rs. 10 crore at all times. AMC should be registered with SEBI. AMC signs an investment management agreement with the trustees. Trustee Company and AMC are usually private limited companies.

11

Trustees oversee the AMC and seek regular reports and information from them. Trustees are required to meet at least 4 times a year to review the AMC. The investors funds and the investments are held by the custodian. Sponsor and the custodian cannot be the same entity. R&T agents manage the sale and repurchase of units and keep the unit holder accounts. If the schemes of one fund are taken over by another fund, it is called as scheme take over. This requires SEBI and trustee approval. If two AMCs merge, the stakes of sponsors changes and the schemes of both funds come together. High court, SEBI and Trustee approval needed.

 If one AMC or sponsor buys out the entire stake of another sponsor in an AMC, there is a takeover of AMC. The sponsor, who has sold out, exits the AMC. This needs high court approval as well as SEBI and Trustee approval. Investors can choose to exit at NAV if they do not approve of the transfer. They have a right to be informed. No approval is required, in the case of open ended funds. For close ended funds investor approvals is required for all cases of merger and take over.

12

REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA

The regulation of mutual funds in India is governed by the SEBI vide the SEBI (Mutual Fund) Regulation, Act 1996 (here in after referred to as SEBI Regulations). These regulations make it mandatory for mutual funds to have a three-tier structure of sponsor Trustee Asset Management Company (AMC). The sponsor is the promoter of the mutual fund and appoints the trustees. The Trustees are responsible to the investors in the mutual fund and appoint the AMC for managing the investment portfolio.SEBI regulations also provide for who can be a sponsor, trustee and AMC, specifying the format of agreement between these entities. These agreements provide for the rights, duties and obligations of these three entities. The UTI is also structured as a trust. The important difference through is that UTI does not have sponsors or a separate AMC. Financial intuitions and banks that contributed to the

initial capital of the UTI have their representatives on UTIs Board of Trustees, which oversees the operation of UTI Mutual Fund. The Association of Mutual Funds in India (AMFI) is a self-regulatory body formed by the various MF Companies to address the practices and policies of various aspects like new scheme launches, payments to intermediaries comparisons and other ethical systems. Likewise, different companies have their own Compliance and Audit offices, which are mandated to control and report adherence to and deviations if any on the regulations and policies issued by SEBI.

ADVANTAGES OF MUTUAL FUNDS

Professional Management Diversification Convenient Administration Return Potential Low Costs Liquidity Transparency Flexibility Choice of schemes Tax benefits well regulated
13

MUTUAL FUNDS STRUCTURE /COMPANY STRUCTURE

Establishes the Managed by the mutual fund as a board of Sponsor trust and trustees. Company registers with SEBI Mutual fund Hold unit holders funds in mutual fund. Enters into an (For e.g. Reliance agreement with SEBI. AMC)

Asset Management Company.

Floats mutual funds as per the regulations of SEBI regulations.

Custodian

Provides custodial services.

Registrar

Provides registrar and transfer services.

Distributors

Provides the network for distribution of schemes to the investors.

14

COMPANY PROFILE

COMPANY PROFILE

Introduction

Reliance Money is promoted by 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 Money is a part of the Reliance Anil Dhirubhai Ambani Group.

It is a one-stop-shop, providing end-to-end financial solutions (including mobile and web-based services). It has the largest non-banking distribution channel with over 10,000 outlets and 20,000 touch points spread across 5,165 cities/ towns; catering to the diverse needs of over 3 million existing customers. Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. It provides customers with access to Equity, Equity and Commodity Derivatives, Offshore Investments, Portfolio Management Services, Wealth Management Services,

Investment Banking, Mutual Funds, IPOs, Life and General Insurance products and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services. Reliance Capital Ltd. has also interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services.

In addition to the home-grown portfolio of products and services that Reliance Money has to offer, Reliance Money also distributes a variety of third party financial

products. It also assists millions of investors in creating customized individual portfolios based on their diverse investment needs and risk profiles
16

Reliance Money is the largest broker and distributor of financial products in India with the largest distribution network and almost over 3,174 employees. Money has increased its market share among private financial companies to nearly Convenient & effective Anytime & anywhere financial transaction

Vision
To build a global enterprise for all our stakeholders, and a great future for our country, To give millions of young Indians the power to shape their destiny.

Mission
To create and nurture a world-class, high performance environment aimed at delighting our customers by providing endless financial products in all part of the country.

Success sutras of Reliance Money

The success story of the company is driven by 8 success sutras adopted by it namely: 1. Trust 2. Integrity 3. Dedication 4. Commitment 5. Enterprise 6. Hard work and Team play 7. Learning and Innovation,

8. Empathy and Humility. These are the values that bind success with Reliance Money
17

Achievements

List of recent achievements

In two successive joint surveys by The Economic Times Brand Equity and ACNielsen, Reliance was recognized as Indias Most Trusted Mutual Fund. The company also walked away with seven other scheme prizes five of them being outright winners in the Gulf 2007 Lipper Awards. These included the Fund House of the Year by Lipper GCC as well as ICRA Online and the Most Improved Fund House by Asia Asset Management.

It also received the NDTV Business Leadership Award 2007 in the mutual fund category and runners up recognition as the Best Fund House in the Outlook Money-NDTV Profit Awards.

In addition, the company received the coveted CNBC Web18 Genius of the Web distinction for the Best Mutual Fund Website in the country. RCAM was awarded the India Onshore Fund House 2008 instituted by the Asian Investor magazine.

The company also won the India Equities award in the 5-yearPerformance category.

Other achievements

Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year March 31, 2009 as against Rs. 24 billion of the corresponding previous period, an increase of 48%. It also achieved a net profit of Rs. 368 million (US$ 8 million) for the same period, as against a net profit of Rs. 1 million for the corresponding previous period
18

Reliance Money is the one of the leading brokerage and distributor of financial products in India with more than 3 million customers

Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi, Webaroo, optionsXpress Holdings, Goldride Securities, World Gold Council, Wincor Nixdorf and DBS Vickers to facilitate better access to wider world class choices to its customers

It is amongst the leading Mutual fund distributors of the country distributing products of 20 AMCs. It is the the largest private sector partner for Western Union Money Transfer in India

To further improve its position in the money changing and money transfer business, Reliance Money has acquired a significant share holding in Wall Street Finance Ltd, a leading provider of money changing and money transfer services in the Country

Reliance Money has tied up with Kuoni India and plans to retail its forex products/services through the national network of over 70 Kuoni outlets

Reliance Money has tied up with India Post and World Gold Council to sell gold coins through the post office network across the country

 Reliance Money has obtained Category I Merchant Banking License from the Securities and Exchange Board of India. This new license allows Reliance Money to provide a wide range of investment banking services such as Issue Management, Underwriting, Private Equity Advisory/ Syndication and Corporate Finance services in India
19

Reliance Money is taking its first steps into the Commodities Exchange business and is in the process of acquiring a 15 per cent stake in Hong Kong Mercantile Exchange (HKMEx). With this holding, Reliance Money becomes the second-largest shareholder in the commodity exchange and will have a board membership. Reliance Money is the first Indian firm to acquire a stake in an international exchange

It has also obtained approval from the Ministry of Consumer Affairs for acquiring 10% stake in the National Multi-Commodity Exchange of India Ltd. (NMCE).

20

Organizational Structure

21

Working At Branch level

Reliance Money Ajmer (Branch office)

22

Staff at Branch Level

At Reliance Money, Ajmer, the following hierarchy exists:-

Three Centre managers. Eight to ten Business Development Executives under each Centre manager. Business associates under each Centre Manager their number depending upon the area allotted to each CM. Remisars under each centre manager. Team leader and PFCs under him for life insurance. One Customer Support Executive and One Senior Finance executive.

Centre Manager
The Centre manager is the Heart of the office who acts as a connection between Head office (Mumbai), National head, Zonal head, Regional head, Area head, Cluster head, The Clients, Remisars, Business associates and the Business development executives. The Centre manager is responsible for the following functions; 1. Organizing all the BDEs, Business Associates and Remisars under one banner. 2. Making sure that the BDEs, Business Associates and Remisars are carrying out their functions well i.e. expanding the business in form of selling the Share trading A/cs , mutual funds, selling general along with life insurance policies . 3. Planning strategies for increasing the business (i.e. installation of canopies at the right place, appropriate advertising in different business Expos or corporate meets. Etc.) 4. Interviewing organization. 5. Identifying the potential agents in the market and making them the business associate or remisar of Reliance Money for good business prospects. 6. Assisting the new BDEs or remisars in handling the clients. 7. Training the new BDEs and the remisars about the product and how to approach the clients. 8. Reporting the regional head on the daily basis about the daily business performed 23 and Selecting Business development executive for the

SWOT Analysis

Strengths

One of Indias 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.

It is Indias first insurance company to be awarded the ISO 9001:2000 certification across all functions, processes, products and locations panIndia. The quality assurance provides an edge over other players.

Company issued 36.57 Lac policies during the year as compared to 14.60 Lac in the previous year thereby registering a growth of 150%.

RGIC has been able to give highest ROI of 11.27% in last five years. The net worth has doubled to Rs.4.94 billion from last years Rs.2.59 billion.

Excellent outreach with a large distribution network. It has 200 branches across 171 cities and over 20,000 intermediaries. The setup provides the company is very strong and very effective distribution network, and consequently a strong penetration in the market.

Experts and research team to make strategies and products for company as well as clients base to resolve the problem.

Capture the 17% of the Private Sector Share & 7% share of the General Insurance Industry 24

Reserves and Surplus has increased five times to Rs.4.998 billion from Rs.1.04 billion previous year.

The Company has earned Rs.1034 crore of New Premium Business in Financial Year 2008 which is 41% share of the Private Sector Industry & 33% of the Industry as whole.

Company is ranked number one in the New Premium Business in Financial Year 2008. Other than this, it maintains a good database of it existing and potential customer, has a brand image and low pricing strategy

Reliance Money unlike other brokering houses has introduced a new brokerage charged from an investor.

prepaid

system of brokerage for the share trading in which it provides the lowest form of

Weaknesses

Dependence on fellow subsidiaries for various supplies. -Extra control or interference from fellow subsidiaries.

Sudden expansion in year 2007-08 by establishing more than 125 branches has increased operations and administration expenses due to which losses incurred. Due to the emphasis on recruiting young people in the company, staff is inexperienced.

25

Clientage is not so loyal as compared to the clientage of other competing companies in the same industry

The phenomenon of job hopping is very common in the company. So, the problem of loyalty towards the company on behalf of the employees is a major problmem

Opportunities

IRDA has removed controls on pricing in General Insurance business with effect from 1st January, 2008. IRDA had notified that except for Motor Third Party risks, all other new insurances and renewals effective on or after 1st January, 2008, insurers shall be free to quotes rates of premium in accordance with file and use guidelines.

General insurance industry in India has grown at 15% CAGR in terms of gross premium collection.

The company has moved to 3rd position amongst Private Sector Insurers in Financial Year 2008 & is ranked 7th amongst the Industry with 14 General Insurance players.

26

In india, there is still a lot more market to be tapped which is getting supported by increasing spending and thereby saving of people.

The mindset of people have also started changing. Now, they consider trading as a good source of earning.

The entire workforce consists of mostly youngsters, which means they can be encouraged and motivated to do good work because they have a long way to go and most of them are eager to climb the ladder.

Threats

New Entrants -Future General India Life Insurance Company Limited -Sep. 2007 -IDBI Fortis Life Insurance Company Ltd. Dec 2007 -Bharti Axa General Insurance Company Ltd. -June 2008

New joint ventures (JVs) by industry giants - Max India forms JVC with Bupa Finance to foray into Health Insurance -Shriram Group is to enter General Insurance Market

Stiff competition from existing players in the market

27

EMPIRICAL ANALYSIS

TABLE SHOWING DIFFERENT AGE GROUP OF THE RESPONDENTS

AGE 0-18 18-36 36-54 54-72 72 & ABOVE

NO OF RESPONDENTS 0 40 50 10 0

Inference: The majority of the respondents i.e. 46% are from the age group of 3654. And the second largest age group is 18-36. And the remaining investors are from 54-72 age group.

29

PREFERRED FUND STRUCTURE

Structure of the fund Open ended fund Close ended fund Interval funds Total No of investors preferred 64 24 12 100

Inference: It is observed that 64 out of 100 that are 64% of investors are interested to invest their money in open ended funds the reason can be attributed to its convenience to enter and exit at any time. 24% investors preferred to invest in close ended funds because they are long term investors as well as they want some tax

benefits. And the remaining 12% investors replied that they dont mind to invest in any funds including interval funds

30

INVESTORS SCHEME PREFERENCE

Preferred fund scheme Growth scheme Income scheme Balanced scheme Total

No of investors preferred 52 16 32 100

Inference: In the above given graph it is showed that 52 out of 100 that are 52% of customers are interested to invest in growth schemes. 8 out of 25 that are 32% of customers are interested to invest in Balanced schemes and the remaining 16% customers are preferred to invest in Income schemes.

31

INVESTORS FUND PREFERENCE

Type of fund Tax saver funds Index funds Sectorial funds Total

No of investors preferred 15 40 45 100

Inference: Out of 100 investors 15 that is 15% of customers are preferred to invest in Tax saver funds. 40 that is 40% of investors are preferred to invest in index funds which give returns based upon respective indexes.. 45 that is 45% of investors are

interested to invest in sectorial funds that means they are ready to take high risk but want high returns
32

TABLE SHOWING REPEATION OF INVESTMENTS MADE BY THE RESPONDENTS

RESPONSE YES NO TOTAL

NO OF RESPONDENTS 64 36 100

No of Respondents

NO, 36

YES NO
YES, 64

Inference: Out of 100 respondents 64 customers have already reinvested in the company, while the rest are waiting for a correct time to enter in the market for the second time.

33

GETTING MONTHLY / QUARTERLY STATEMENTS IN TIME

Getting Monthly / Quarterly statements from time to time Yes No

No of Investors

70 30

Inference:70 out of 100 people getting monthly/quarterly statements from time to time 30 out of 100 people not getting monthly/quarterly statements from time to time .
34

RESPONDENTS RANKING ON THE CUSTOMER SERVICE OF RELIANCE MUTUAL FUNDS

RANKS ONE TWO THREE FOUR FIVE

NO OF RESPONDENTS 34 16 26 16 8

Inference:

Out of 100 respondents 34 ranked RELIANCE as Rank One for

customer service function.

35

RESPONSE REGARDING AREAS FOR IMPROVEMENT BY RELIANCE MUTUAL FUNDS

AREAS CUSTOMER SERVICE MONITORING OF FUND AGENTS TRAINING OTHERS TOTAL

NO OF RESPONDENT 35 38 22 5 100

Inference

Out of 100 respondents 38 respondents want RELIANCE to improve at their fund monitoring function. 36

RESPONSE REGARDING USAGE OF VALUE ADDED SERVICES OFFERED BY RELIANCE MUTUAL FUNDS

VALUE ADDED SERVICES ATM Ecs Online transaction Direct investment

NO OF RESPONDENT 0 60 20 40

Inference: Most of the customers are making use of value added services of Ecs and a few of them make use online transaction and direct investment.

37

FINDINGS & SUGGESTIONS

FINDINGS & SUGGESTIONS

The findings for the above research are as follows: It was found that majority of the investors i.e.46% are from the age group of 36-54. This is the group of middle age people who deserve to invest for their future financial needs.

It was found that Out of 100 respondents 64 customers have already reinvested in the company, while the rest are waiting for a correct time to enter in the market for the second time.

It was observed that Out of 100 respondents 62 investors have reinvested due to better returns and performance of funds. While the rest of the investors have voted for performance of funds and services provided by the company.

It was observed that Out of 100 investors 15 that is 15% of customers are preferred to invest in Tax saver funds. 40 that is 40% of investors are preferred to invest in index funds which give returns based upon respective indexes.. 45 that is 45% of investors are interested to invest in sectorial funds that means they are ready to take high risk but want high returns

It was found that Out of 100 respondents 34 ranked RELIANCE as Rank

one for customer service function.

It was found that Out of 100 respondents 38 respondents want RELIANCE to improve at their fund monitoring function

39

CONCLUSION AND RECOMMENDATIONS

The following suggestions are the outcome of the research and applications of these suggestions are not necessary:-

The company should come up with innovative ways of service at their door steps this may be a costly affair but will surely give positive results in the long run. The company should take the initiative of training the advisors about the new funds from time to time which also makes the advisors connected to the company. The company should also emphasize on the monitoring of funds which directly relates to the returns of a specific fund. The company should focus on the advertising strategy and also the marketing of the product. The company should emphasize on creating an awareness about the SIP options which is always preferable when the market is volatile. The company doesnt have enough tax saving plans or appropriate plans for tax so which they should come up with. There should be a regular system of monitoring the satisfaction of customers. Focus of employees should be customers satisfaction. 24*7 as this will enable the organization as a whole and the branch in specific to become long term choice of customers.

40

ANNEXURE

QUESTIONNAIRE

NAME: AGE: PROFESSION:

1. Have you ever invested in RELIANCE Mutual Funds?

Yes No

[ ] [ ]

2. If yes why did you choose RELIANCE Mutual Funds?

3. By structure in which type of schemes did you invested?

Open - Ended Schemes

[ ]

Close - Ended Schemes [ ] Interval Schemes [ ]

4. By investment objective in which type of schemes have you invested?

Growth Schemes Income Schemes Balanced Schemes [ ]

[ ] [ ]

5. In which type of fund you want to invest? Tax saver funds Index funds Sector ial funds [ ] [ ] [ ]

(i) 6. Did you repeat your investment after your initial investments? Yes No

7. Are you getting Monthly / Quarterly statements from time to time?

Yes No

[ ] [ ]

8. Are you satisfied with portfolio management managed by RELIANCE Money?

Yes No

[ ] [ ]

9. Which value added service you are using?

ATM [ ] Ecs [ ]

Online transaction [ ] Direct investment [ ]

10. Are you satisfied with value added services offered by RELIANCE Money?

Yes No

[ ] [ ]

11. What is your opinion on RELIANCE Mutual Funds overall performance?

Excellent Good Better Bad

[ ] [ ] [ ] [ ]

12. In what areas do you want RELIANCE mutual funds to improve?

E.g. Customer service Monitoring of fund Agents training Others (ii)

BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS

MUTUAL FUNDS IN INDIA ICFAI University press Published by ICFAI BUSINESS SCHOOL Research Methodology- C.R. Kothari

COMPANY BROCHURES AND PAMPHLETS

WEBSITES
www.reliancemutualfunds.com www.amfiindia.com www.mutualfundsindia.com www.mutualfundsindia.com

www.ask.com www.faq.com www.bseindia.com www.amfiindia.com/mutual funds/nav/about funds/open ended schemes.com www.investopedia/aboutus/html