SUMMER TRAINING PROJECT REPORT

ON

TO STUDY THE AWARENESS OF THE FINANCIAL

PRODUCTS OF RELIANCE MONEY

A Project Done at

RELIANCE MONEY

Submitted to: Submitted By:

Jasmeen Jaggi
M.B.A
 Roll No-7125223511

ACKNOWLEDGEMENT

I must acknowledge my indebtedness to various personalities, but for whom,

this project could not have seen the light of the day.

I express my sincere gratitude to my guide Mr Manish Kaushik for his able

guidance, continuous support and cooperation throughout my project, without
which the present work would not have been possible.

I would also like to thank the entire team of Reliance Money, for the constant
support and help in the successful completion of my project.

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 TABLE OF CONTENT

TOPICS PAGE NO.

INTRODUCTION TO THE COMPANY 1

BOARD OF DIRECTORS 2

RELIANCE MONEY 3

INNOVATIVE USE OF TECHNOLOGY 10

RELIANCE MUTUAL FUNDS 11

RELIANCE EQUITY ADVANTAGE FUND 12

RELINNCE REGULAR SAVING FUND 13

SWOT ANALYSIS 15

PROCEDURE OF CLIENT ACQUISITION 16

BRAND POSITIONING 17

RESEARCH METHODOLOGY 20

LIMITATIONS OF THE PROJECT 23

SCOPE OF THE STUDY 24

COMPETITOR ANALYSIS 25

ANALYSIS AND INTERPRETATION 41

DISCUSSION 50
CONCLUSION AND RECOMMENDATION 55
BIBLIOGRAPHY 57

QUESTIONNANIRE 58

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iv
 INTRODUCTION TO THE COMPANY
Reliance Capital Ltd

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.

Reliance Capital 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 Capital entered into lucrative online trading business with Reliance
money. There are mixed reports about this online trading platform. It shook up
online trading business with cheap brokerage charge offer.

Business Overview

RCL is registered as a depository participant with National Securities

Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the
Securities and Exchange Board of India (Depositories and Participants)
Regulations, 1996. RCL has sponsored the Reliance Mutual Fund within the
framework of the Securities and Exchange Board of India (Mutual Fund)
Regulations, 1996.RCL primarily focuses on funding projects in the
infrastructure sector and supports the growth of its subsidiary companies,
Reliance Capital Asset Management Limited, Reliance Capital Trustee Co.
Limited, Reliance General Insurance Company Limited and Reliance Life
Insurance Company Limited. As of March 31, 2005, the company’s
investment in infrastructure projects stood at Rs. 1071 Crores. The investment
portfolio of RCL is structured in a way that realizes the highest post-tax return
on its investments.

Reliance Capital Ltd. is one of India’s leading and amongst the fastest
growing private sector financial services companies, and ranks among the
leading private sector financial services and banking companies, in terms of
net worth. Reliance Capital Ltd. has interests in asset management and
mutual funds, life and general insurance, private equity and proprietary
investments, stock broking and other financial services.

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 BOARD OF DIRECTORS
• Amitabh Jhunjhunwala, Vice-Chairman

Amitabh Jhunjhunwala, an FCA, has over 23 years of experience in finance

and the capital markets. Amitabh is also the Director of Reliance Capital Asset
Management Limited.

• Rajendra Chitale, Independent Director

Rajendra P. Chitale, an eminent Chartered Accountant, is the Managing

Partner of M/s M. P. Chitale & Co. He is a Director on Boards of the National
Stock Exchange of India (NSE), Asset Reconstruction Company (India) Ltd,
Hinduja TMT Ltd and Gujarat Ambuja Cements Ltd. He is also a member of
the Advisory Group on Derivatives and the Takeover Panel, Securities and
Exchange Board of India, as well as the Company Law Advisory Committee of
the Government of India.He has also served on the boards of Life Insurance
Corporation of India, Unit Trust of India, SBI Capital Markets Ltd and Small
Industries Development Bank of India.

• Shri C. P. Jain

Shri C.P. Jain, aged 60 years, is the former Chairman and Managing Director
of National Thermal Power Corporation (NTPC). 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) and was
elevated as Chairman & Managing Director in September 2000. He was
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.

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 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

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, IPOs,
Mutual Funds, Life Insurance and General Insurance products

Reliance Money is the most cost-effective, convenient and secure 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. The facility of trading is subject to expiry of the validity
period or value limit, whichever comes first.

Illustrations depicting 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

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 ♦ 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

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

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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
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

Hassles 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:

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

b. Live news from Reuters and Dow Jones

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

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

e. Analyze your risk profile through the Risk Analyzer

f. Get a suitable investment portfolio using the Asset Allocator

KEY BENEFITS OF RELIANCE MONEY

Equity is a share in the ownership of a company. It represents a claim on the

company’s assets and earnings. As you acquire more stock, your ownership
stake in the company increases. The terms share, equity and stock mean the
same thing and can be used interchangeably.

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Holding a company’s stock means that you are one of the many owners
(shareholders) of a company, and, as such, you have a claim (to the extent of
your holding) to everything the company owns. Yes, this means that
technically, you own a portion of every piece of furniture; every trademark;
every contract, etc. of the company.

As an owner, you are entitled to your share of the company’s earnings as well
as any voting rights attached to the stock.

Another extremely important feature of equity is its limited liability, which

means that, as a part-owner of the company, you are not personally liable if
the company is not able to pay its debts. In case of other entities such as
partnerships, if the partnership goes bankrupt, the partners are personally
liable towards the creditors/lenders and they may have to sell off their
personal assets like their house, car, furniture, etc., to make good the loss. In
case of holding equity shares, the maximum value you can lose is the value of
your investment.

Even if a company of which you are a shareholder goes bankrupt, you can
never lose your personal assets.

Here is some Useful Information available on R- Money:

Investment options are available in:

1. Equity (Stock) Trading

2. Derivatives Trading

*Special feature is available first time to track your positions online, in real
time.*

3. Forex Trading

4. Commodity Trading

5. IPO's

6. Mutual Funds

7. Insurance

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Reliance Money gives you the access to Over 5000 Schemes of 28 Assets
Management Companies (AMCs) with just one account. Some of them
included are.

Portfolio Tracker

Manage your mutual fund portfolio from the Reliance Money account. Benefit
from live valuation and alerts and also track NAVs of any scheme online.

Choice of investment strategies

From just two scheme types (equity scheme and debt scheme) offered when
the mutual fund industry was conceived more than four decades ago, today,
mutual funds offer a plethora of scheme types with different investment
strategies.

Life Insurance

Reliance Money Account gives you the advantage of buying policies from 12
different Life Insurance companies, helping you get unbiased opinion.

General Insurance

Reliance Money Account also extends the product offerings from 10 General
Insurance Companies with exhaustive range of insurance products that
covers most risks including Motor, Health, Property, Marine, Casualty and
Liability.
Over the Counter Products

Your Reliance Money Account makes it so simple for you to buy insurance
products that its as easy as buying something over the counter.

RelianceMoney.com is offering most dynamic web based trading environment

to its customers. The new trading platform has many new features which
basically fill up the gap between old online trading companies in India and
their customers.

The Reliance Money trading websites comes with special security features
Security Token, which makes you online trading experience more secure
without complexity.

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Stock Trading is available in BSE and NSE. Offline trading is also available
through Reliance Money partners in your city and through phone by dialing
022-39886000.

TYPE OF ACCOUNT

Reliance money is offering 3 types of accounts to its customers. Account for

beginners, for middlers and for experts.

How to open account with Reliance Money?

Account opening with Reliance Money is easy. Simply fill a form online at
below address and somebody from Reliance Money will contact you soon.

Advantages of Reliance Money

1. Extra security features with 'Security which is the most secure and tested
technology in computer world.

2. Simple, easy and fast online stock trading.

3. Almost all investment options are available under one account including
Equity Trading, Derivatives, Forex, Commodity, IPO, Mutual Funds and
Insurance.

4. Branches are now available in all major cities and the number is growing.
Branches are open from 9am to 9pm.

Online trading is presently at its nascent stage and is not the most preferred
option for financial transactions owing to security concerns and lack of
accessibility points. Reliance Money through these hi-speed, technologically
secure kiosks will therefore be able to reach out to all its existing and potential
customers at even the remotest locations in the country without compromising
on the security of its customer’s funds.

Why should you choose Reliance Money?

1. Because it is from Reliance. Reliance capital has big plans

regarding this business. It may announce attractive offers to gain market
share. Reliance will never enter into a business with small plans.

2. Its brokerage charges are lowest in the country among major

providers. With Rs 2500 prepaid amount, you can trade for Rs 5 crore.

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 3. Site is simple in design, fast to access and easy to find required
information.

4. Its daily reports on market trends and technical breakouts are

very useful.

5. Website content is divided according to the requirements of

experts and beginners.

6. You can trade in Forex, Derivatives, Mutual funds, IPO and buy
Insurance.

Why should you stay away from reliance Money?

1. The trading platform is still in development stage. There are

many bugs needs to be rectified.

2. Its “Insta trade” service is not up to the standard. Reliance

Money software is a java based simple software. It should provide
advanced software to meet the needs of advanced traders.

3. Its system is sometimes very slow and orders are not placed at
the time.

4. Its market watch solution is a way behind its competitors like

Money control and ICICIdirect.

5. Its service people are not as efficient as competitors.

6. It is still not providing options to buy Post office savings.

7. It is recommending few stocks even when stock markets are on

roll.

Reliance Money still needs many improvements to its online trading platform.
Reliance capital is spending big money to improve the service. It needs to
train service to the needs of market people. It still needs to include more
research reports like ICICIdirect website.

It should make complete makeover to market watch page. It is too early to

make final judgment on Reliance money.

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 INNOVATIVE USE OF TECHNOLOGY
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 the earlier transaction is discarded). This number works as a
third level password that keeps you account extra safe.

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 RELIANCE MUTUAL FUNDS
Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group
is one of the fastest growing mutual funds in the country. Reliance Mutual
Fund offers investors a well-rounded portfolio of products to meet varying
investor requirements. Reliance Mutual Fund has a presence in over 100
cities across India and an investor base of over 3.38 million.
Reliance Mutual Fund constantly endeavors to launch innovative products
and customer service initiatives to increase value to investors. Reliance
Mutual Fund schemes are managed by Reliance Capital Asset Management
Ltd., a wholly-owned subsidiary of Reliance Capital Ltd.

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 (An open-ended Diversified Equity Scheme.)

The primary investment objective of the scheme is to seek to generate capital

appreciation & provide long-term growth opportunities by investing in a
portfolio predominantly of equity & equity related instruments with investments
generally in S & P CNX Nifty stocks and the secondary objective is to
generate consistent returns by investing in debt and money market securities.

Get the Reliance Equity advantage

Just as an expert coach identifies a promising talent, investing in equity

markets requires an expert's foresight. At Reliance Mutual Fund they have
groomed a team of professionals with the aim to get the maximum advantage
out of your investments. Introducing Reliance Equity Advantage Fund, an
open-ended diversified equity scheme which seeks to generate capital
appreciation and provide long-term growth opportunities for your investments.

Reliance Equity Advantage Fund

Reliance Equity Advantage Fund is an open-ended diversified equity scheme,

which proposes to invest in line with the sector ratio of S&P CNX Nifty. At
least, 70-100% of corpus will be invested in equity & equity related
instruments and the balance 0-30% in Debt & Money market instruments.

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 RELIANCE REGULAR SAVINGS FUND
(An Open-ended Scheme.)

Reliance Regular Savings Fund provides you the choice of investing in Debt,
Equity or Balanced options with a pertinent investment objective and pattern
for each option.

The Reliance Regular Savings Fund is an open-ended scheme, which comes

with its own ATM cum Debit card -the Reliance Any Time Money Card.You
don't have to give up the returns of a mutual fund for instant availability of
cash. The Reliance Regular Savings Fund endeavours to deliver both.
For the first time in India, your mutual fund offers instant cash withdrawal
facility on your investment at any VISA-enabled ATM near you. With a choice
of three investment options, the fund is truly, the smart new way to invest.
Get instant cash when you need it

Simply walk down to any VISA enabled ATM near you and withdraw your
money invested in the fund (redeem your units).

Cashless transactions at over 24 million* Merchant Establishment

locations
The Reliance Any Time Money Card is accepted at over 24 million Merchant
Establishment locations worldwide. You can now have cashless transactions,
whenever you make a purchase or use the service at any Merchant
Establishment validated by VISA.

Just Rs.100/-per month

Invest as little as Rs.100/-every month in the Reliance Regular Savings Fund

through the Systematic Investment Plan (SIP) route to build your investment
little by little, month by month. Now even your small savings can mean a lot.

Round-the-clock access

With the Reliance Any Time Money Card you can check the Current Holding
Value as well as the Withdrawal Limit of your investment any time of the day

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or night. The card is your key to access your investment round the clock.

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Withdrawal Limits

You can withdraw only upto the maximum permissible ATM withdrawal limit in
a day (which is as prescribed by the Bank for ATM/Point of Sale transactions)
or 50%of your withdrawal limit (as set by Reliance Mutual Fund) whichever is
lower.

Investment Objective

Reliance Regular Savings Fund provides you the choice of investing in Debt,
Equity or Balanced options with a pertinent investment objective and pattern
for each option.

Debt Option: The primary investment objective of this option is to generate

optimal returns consistent with a moderate level of risk. This income may be
complemented by capital appreciation of the portfolio. Accordingly,
investments will predominantly be made in Debt & Money Market Instruments.

Equity Option: The primary investment objective of this option is to seek

capital appreciation and/or to generate consistent returns by actively investing
in Equity &Equity-related Securities.

Balanced Option: The primary investment objective of this option is to

generate consistent returns and appreciation of capital by investing in mix of
securities comprising of equity, equity related instruments & fixed income
instruments.

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 SWOT ANALYSIS

Strengths Weakness

• Service • Customer Satisfaction

• Distribution network • Branding

• Marketing • Competition from Banks

• Products

Opportunities Threats

• Ever increasing market • New competitors

• Improving technology • Technology based business

• Unfulfilled needs of customers.

• Education level

A SWOT analysis focuses on the internal and external

environments, examining strengths and weaknesses in the internal
environment and opportunities and threats in the external
environme

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PROCEDURE OF CLIENT ACQUISITION
• In the first phase we are given training and we are explained about
different things of market. They described us about Reliance Money,
introduction, products and services offered by Reliance Monet in the
market. We have been trained properly about Reliance Money.
• After that they conduct a mock viva, in this they ask about the real life
problem faced by the customers.
• They provide us leads and we make calls. Three types of leads are
provided to us:
#People who registers themselves on Reliance Money website willing to be
client of Reliance Money and want to know about its product.
# People who have Demat account already with any another broker.
# People who are totally unknown to this market.

• Then after that we have to provide details of product and convince

them. People who have already Demat account, we have to convince
them by giving information about Reliance Money services benefits.
DOCUMENTS PHOTOCOPIES REQUIRED:-
(A) TWO COLOURED PHOTOGRAPHS (self signed).
(B) For Identification Proof - VOTER ID CARD / DRIVING LICENCE /
PASSPORT/ PAN CARD (ANY ONE)
(C) For Residence Proof - BANK STATEMENT / VOTER ID CARD /
RATION CARD / DRIVING LICENCE /PASSPORT / TELEPHONE BILL
STATEMENT /ELECTRICITY BILL STATEMENT
(ANY ONE)
(D) Bank statement
(E) One account opening cheque
(F) You can also deposit the initial margin money at the time of opening the
account

• Maintaining dairy of clients and contacting them at regular basis. To

get feedback from them about Reliance Money services.

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 BRAND POSITIONING
Reliance Money is the flagship brand of Reliance ADA Group for its foray into
Equity, Commodity and Forex broking in India. Reliance Money is promoted
by Reliance Capital, one of the largest NBFCs in India.

Reliance Money, the brokerage and distribution arm of Reliance ADA Group,
aims to tap investors in the smaller towns and cities through a flat fee
structure.

The current leaders in the retail broking segment like ICICI Direct, India
Infoline and Indiabulls offer a ‘pay per use’ model where the customer pays a
percentage of the amount transacted by him

India has 270 million bank accounts, 30 million mutual fund folios, but only 6
million unique demat accounts. “This low level of penetration by existing
brokerages means that the scope for business is tremendous.

The brokerage arm has already established its presence in 700 towns in the
country through 2500 outlets - part owned by the company and part set up by
franchisees.

Reliance Money’s brokerage rates are quite competitive. Pre-paid cards of

various denominations is to help investors with varying risk appetites. If one
buys a Rs 500 card, he can carry out delivery trades up to Rs 10 lakh and/or
non-delivery trades up to Rs 1 crore.

This roughly translates to 0.05% for delivery trades and 0.005% for non-
delivery trades. Industry rates vary between 0.4% and 0.85% for delivery
trades, and between 0.05% and 0.10% for non delivery trades. Reliance
Money’s attempt to expand the breadth of the market has been dictated by
the growing interest in the stock market among a number of investors in the
smaller towns and cities.

Through its state-of the-art online trading platform, Reliance Money is

gradually making an active foray into Equity, Commodity and Forex broking.
For the first time in India, R Trade will provide the Indian investor the facility of
trading in equity, commodity and forex on a single platform.

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Reliance Money Ltd is changing tack in order to move a step beyond the retail
business, which has so far been its mainstay.

RML, which intends to compete with strong retail brokerage players like ICICI
Direct, will soon start catering to institutional clients in a more organised
manner, though retail will continue to be its focus.

The company plans to pay more attention to an area that has already seen
considerable demand, courtesy wholesale investors who are increasingly
providing significant business to securities broking outfits.

The idea is to increase the number of outlets RML currently has in order to
reach out to more customers.

Investors have two options while trading through Reliance Money. They can
use the internet or call in their orders for company officials to execute.

Reliance Money has also partnered UK-based CMC Markets, a global player
in the online derivatives trading segment, to bring overseas investment
products to Indian investors. This tie-up is to enable customers of Reliance
Money gain access to several offshore products including — foreign equities,
currency and commodities within the RBI-mandated limits. As a matter of fact,
several investors reportedly made a killing by trading on the shares of Corus
in the days prior to its auction.

It is an endeavour to change the way India trades in financial markets and

avails of various financial services. Reliance Money ensures maximum
security with a unique security token to keep your online account safe.
Reliance Money plans to be the largest player, at least as big as the next four
companies in the commodities broking space. Since a lot of money has been
lost in commodities markets in recent times, there is a need for a well-
designed product to bring back investor confidence. To take participation to
the next level, it is imperative to build awareness among retail investors.
Further, given the current level of maturity, the dealer franchisees need to be
trained before the knowledge can percolate down to every participant.

Retail financial services firm Reliance Money has tied with depository NSDL
and National Stock Exchange to spread equity investment culture in the

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country, an initiative that will help it double its customer base by this fiscal
end.

Reliance Money aims to expand the market by bringing in newer investors

and facilitating them through appropriate handholding at the initial stages of
their capital market journey. The initiative aims to introduce a consumer
education programme for educating over one lakh new investors in the
country over the next six months, the company said. The programme involves
educating and guiding new investors in basics and fundamentals of investing
in equities and addressing various issues related to stock market. Since its
launch in April, the Anil Dhirubhai Ambani group firm has already roped in
1.50 lakh customers and plans to multiply this number to over three lakh by
the end of this fiscal with such retail initiatives, the company said. Average
daily turnover for Reliance Money has already crossed Rs 600 crore, over one
per cent of total turnover of NSE and BSE, since its launch.

The country has an immense growth potential with 30 crore plus bank
accounts and three crore Mutual Fund folios in a 12-years old industry. There
are only six million unique depository accounts, although the industry is over
100 years old. India saves 28 per cent as a percentage of GDP and only 5 per
cent of this saving is invested in capital markets. There is an urgent need to
spread the equity culture to increase the depth of capital market and enable
wider participation. This can only change if we spread it across the country.

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 RESEARCH METHODOLOGY
Type of research : DESCRIPTIVE RESEARCH

Sample size : 150

Sampling technique: RANDOM SAMPLING

Primary Data:

First hand information was obtained through face-to-face interviews and

questionnaire.

Questionnaire design

A questionnaire is designed to know the view of employees of the companies

as well as of the customer perception about reliance financial products..

Secondary Data

Under Secondary sources, we tapped information from internal & external

sources. We made use of Internet (such as search engine www.google.com),
and miscellaneous sources (such as brochures, pamphlets, library)
under external sources.

ANALYSIS

To make our research project most effective in a given time period of two
months surveyed the information of the competitors. We undertook both
Explorative as well as Conclusive Research Design. The data has been
collected from both Primary as well as Secondary sources and we also did the
fieldwork for which utmost care has been taken to keep project unbiased from
personal opinion.

SIGNIFICANCE OF THE STUDY

Every research is conducted to fulfill certain objective and these objectives in

turn fulfill some purpose. MBA curricular is designed to give more practical
exposes to the student so that he can make use of theoretical knowledge in
the real life situation, with this thrust dissertation study has been included
which provides opportunity to research to gain practical insight of the market.
This hand on experience helps him in identifying the critical factor of

22
consumer buying behavior. This rich experience will be great help in
researcher’s future endeavors and it also solves the purpose for the partial
fulfillment of MBA curriculum.

I sincerely believe that road to improvement is never- ending and one always
learns from a new experience. This project is a step towards gaining
knowledge about real world and putting the theory of practice. I shall look
forward to and gratefully acknowledge all suggestion on this small step I have
taken.

The report consists of a step–wise efforts towards meeting the objectives of

the study. It covers the step-wise collection of data collection and the
representation of the data together with the analysis. It also includes some
suggestions put forward hoping it would help the company achieve its vision.

MANAGERIAL USEFULNESS OF THE STUDY

The marketing department can use this study to enhance their marketing
strategies for better sales. This report helps marketing department in taking
decision to what change in distribution channels and what should be done so
that marketing problem could be shorted out and how to sell their range of
product in the competitive market.

The very essence of every project related to marketing is providing a view to

management for chalk out the organization. So that they can maintain a viable
fit between the organization objective, skill and resources and it’s changing
market opportunities. Also give proper shape to the company business target
profit and growth. It provides a feedback to the organization about their sales,
sales schemes and what impact dose it has on the retailers and consumer.
Every market research proves useful suggestion to the organization.
Marketing research helps the firm in every component of the total marketing
task. It helps the firm in every component of the total marketing task. It helps
the firm acquire a better understating of the buyer, the competition and
marketing environment. It also aids the formulation of the marketing mix,
product, distribution and pricing needs marketing research support. It also in
taking the information of competitor’s strategies and their impact on the buyer.
The study revels may fact that have come up during the project and these

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facts can either be used as opportunities in exploring and expending the
business as well as can be used as safeguard against threats by the
competitors to prepare an effective marketing strategy. Every market research
proves usefulness to the organization. Marketing research helps the firm in
every component of the total marketing task. Its helps the firm acquire a better
understanding of the consumer, the competition and the marketing
environment. It also aids he formulation of marketing mix, decision on each
element of marketing mix, product, distribution and promotion and pricing etc
need the support of marketing research

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 LIMITATIONS OF THE PROJECT
Services of competitors:

We cannot give proper comment on competitor’s services till we use it. But I
try to collect as accurate information as possible. As we all know services are
intangible and we cannot predict its quality, it is a thing to feel not to see.

No proper assurance of right information:

The main data sources are websites, telephonic information and offices visit.

• The data on websites might be possible, not get updated.

• The marketing person might be possible, is not through with all

concepts to whom I contacted.

• Sometimes, they try to hide information.

• Lack of awareness of Stock market: -- Since the area is not known

before it takes lot of time in convincing people to start investing in
shares primarily in IPO’s.

Mostly people comfortable with traditional brokers: -- As people are doing

trading from there respective brokers, they are quite comfortable to trade via
phone.

Lack of Techno Savvy people and poor Internet penetration:

- Since most of the people are quite experienced and also they are not techno
savy. Also Internet penetration is poor in India.

Some respondents are unwilling to talk: -- Some respondents either do not

have time or willing does not respond, as they are quite annoyed with the
phone call.

Inaccurate Leads: -- Sometimes leads are provided which had error in it

which varies from only 5 digit phone number to wrong phone number

Misleading concepts: -- Some people think that Shares are too risky and just
another name of gamble but they don’t know its not at all that risky for long
investors.

25
 SCOPE OF THE STUDY
These are some of the following scope of the study:-

1. The present study can be extended to assess the present marketing

condition of stock market.

2. The study can be used to design a proper product, price, place &
promotional strategy for stock market.

3. From the present study we can know the market share of different by-
products and accordingly formulated strategy to enhance it.

4. The result of marketing success of different by-product can be

interpreted to assess the rate of employee’s satisfaction in that department
(marketing).

5. This study can be applied to find out an effective distribution channel to

enhance the sale of by-product of Reliance Money.

26
 COMPETITOR ANALYSIS
5 Paisa

5paisa is Online Stock Trading Company of India Infoline

Securities Private Ltd. , Owner of popular business portal
Indiainfoline.com. Besides high quality investment advice
from an experienced research team, the site offers real time
stock quotes, market news and multiple tools for technical
analysis. Trading is available in BSE and NSE.

Trading Terminals Available

Investor Terminal (IT)

Investor Terminal is 5Paisa's equity trading terminal for

low volume trader. This is web based terminal and
could access from anywhere. This product provides
limited features in comparison of Trader Terminal,
which is another product provided by 5Paisa.

Trader Terminal (TT)

Trader Terminal is for high volume equity traders.

Trader Terminal provides high volume trading with
powerful interface and fast order execution.

Advantages of 5paisa Trading Terminals

1. Very fast execution speed.

27
Disadvantages of 5paisa Trading Terminals

1. No intra-day tick by tick charts in Investor Terminal

(IT).

2. Learning 5paisa Trading Terminal is little hard.

Motilal Oswal Securities

Motilal Oswal Securities Ltd. (MOSt) is one of the best

broking houses in India. Founded in 1987, MOSt has in 200
cities through 400 outlets. MOSt provide advice-based
broking (equities and derivatives), portfolio management
services (PMS), e-Broking, depository services, commodities
trading, IPO and mutual fund investment advisory services.

Type of Account

MOSt E-Broking

MOSt E-Broking is complete online stock trading

solution for Indiaian stock market. Following are the
features of MOSt E-Broking account:

o Easy single screen trader with instant trade

confirmation similar to exchange based trading
terminals.

o Access to various online reports like margin

report, Demat A/c details, trades executed,
turnover report, net position report with mark to
market profit/loss and realized profit.

o Online transfer funds through HDFC Bank.

28
How to open account with Motilal Oswal Securities Ltd.
(MOSt)?

You could use one of the following options to open account

with ICICIDirect.

• Visit MotilalOswal.com and fill the "Open an Account"

form.

• Contact MOSt by sending email at

mybroker@motilaloswal.com

• Call MOSt and tell them that you are interested in

opening an account with them.

Awards

1. 2005, Asiamoney Brokers ranked MOSt the best Indian

brokerage firm in India.

2. March 2006, AQ Research declared MOSt the best

research house for Indian stocks.

HDFC Securities

HDFC Securities (HDFCsec) is Equity Trading Company of

HDFC Bank. HDFC Securities provide both online trading
and trading on phone. The HDFC Securities trading account
has a unique 3-in-1 feature that integrates your HDFC
Securities trading account with your existing HDFC bank
savings account and existing Demat account. Funds / shares
are seamlessly moved from the linked Demat/Bank account
to execute the transactions.

HDFCsec provides Cash-n-Carry on both NSE and BSE, Day

trading on both NSE and BSE, Trade on Futures & Options
on the NSE and Online IPO Investment.

29
Features on HDFC Securities Online trading

1. Seamless Transactions - By integrating your accounts,

we ensure minimal waste of time during movement of
your funds and shares.

2. Speed - Orders are placed electronically, so proceeds

are available instantly.

3. No manipulation - To prevent any mismanagement, we

will send you an email confirmation, the minute your
order is executed.

4. Safety and Security - HDFC Securities offer the highest

level of security such as 128-bit encryption technology.

5. Dedicated and Separate contact numbers - for trading

over the phone as well as for customer care.

Document Required to open account with HDFCsec

Any Indian resident/non resident individual NRI (except for

the US NRIs) or an Indian Corporate can register with
HDFCsec. However, to become a member, you will have to
open savings/current and demat accounts with HDFC Bank.
Following documents are required to open account with
HDFCsec

1. One passport size photograph.

2. Copy of PAN card.

3. Identity proof - copy of passport or PAN card or voter

ID or driving license or ration card.

4. Address proof - copy of driving license or passport or

ration card or voter card or telephone bill or electricity
bill or bank statement.

30
Brokerage and fees :

1. Rs. 799/- (Including trading account, bank account and

DP account with HDFC)
Please note: HDFC Bank savings account required a
quarterly minimum balance of Rs. 2,500/-. If you
already have Saving account or DP account with HDFC,
you could link them with trading account.

IDBIPaisaBuilder

Idbipaisabuilder.in is a multi purpose online stock trading

website from IDBI Capital Market Services Ltd. , a leading
provider of financial services in India and is a 100%
subsidiary of Industrial Development Bank of India (IDBI).

Idbipaisabuilder.in allows investing in equity shares,

derivatives (futures & options) mutual funds & IPO's in India
Stock Markets. You can buy or sell securities on NSE and
BSE Stock exchanges.

Type of Account

Paisa Power Classic Trading Terminal

Paisa Power Classic Account

Paisa Power Classic Account is online stock trading

account for beginners and low volume traders in India
Stock Market. It allows investor to invest in Equity,

31
 Mutual Funds and IPOs online. Following are few
popular features of this account:

a. Online trading account for investing in Equities

and Derivatives.

b. Short learning curve helps you to start quickly.

c. Easy to use features.

d. Evaluate & buy mutual funds schemes online and

check on fund rankings through our performance
map.

e. Apply for IPO’s online. No paper work or check

required for applying in IPOs.

f. Integration of: Online trading + Bank + Demat

account

g. Trading is available in both BSE and NSE.

Paisa Power Streaming Trading Terminal

Paisa Power Streaming Account

Paisa Power Streaming Account for online trading is for

high volume and frequent equity traders. As classic
account this account also provides investment options
in Stocks, Mutual Funds and Initial public offers online.
Following are few popular features of this account:

h. Live refreshing equity prices, which enable you to

keep track of every price movement as soon as it
takes place.

32
 i. Setting price alerts on the scripts in order to notify
you as soon as your scrip reaches a particular
price point.

j. Multiple market watches, message window and

trading window.

k. Evaluate & buy mutual funds schemes online and

check on fund rankings through our performance
map.

l. Apply for IPO’s at the click of a button without any

of the hassle of tedious paperwork and processes
involved in an offline IPO application.

m. Trading is available in both BSE and NSE.

Brokerage and fees:

Advantages of IDBIPaisaBuilder

1. Idbipaisabuilder.in enables you to set up a single

integrated 3-in-1 account that links your Bank, Demat
and Trading accounts.

2. All your transactions are online which means absolutely

no paperwork involves.

3. You can invest anywhere, at absolutely anytime, even

when the market is closed. All your orders are
confirmed immediately with no delays.

4. Trade over Phone (ToP) facility is available in addition

to internet trading. ToP allows you to place orders or
check order status on phone.

5. Idbipaisabuilder.in website is 'Version Certified', which

ensures complete confidentiality of your transactions
with highest security.

6. Help documents and demos are available to invest in

equity, mutual funds and IPO’s which helps you to get

33
 familiar with the process on investing through
Idbipaisabuilder.

How to open an account with IDBIPaisaBuilder?

Over Internet:

Fill a simple form and Idbipaisabuilder representative

will contact you with all formalities to open an account.

On Phone:

Call Toll Free Number: 1800-22-3366 or 022-3291 5001

Through Email:

Simply send an email to info@idbipaisabuilder.in ,

requesting for any information you required.

Visit Branch Offices:

Click here to find out nearest IDBIPaisaBuilder Branch

Offices.

Useful links & info about IDBIPaisaBuilder

1. Official website: http://www.idbipaisabuilder.in/

2. List of Branch Offices .

3. Product Demo: Paisa Power Classic Account

4. Product Demo: Paisa Power Streaming Account

5. Corporate office:
IDBI Capital, Mafatlal Center, 5th Floor
Nariman point, Mumbai 400-021 India

6. Customer Service E-mail: email-

Custcare@idbipaisabuilder.in

7. Customer Service Phone: 1800-22-3366

34
ICICIDirect

ICICIDirect (or ICICIDirect.com) is stock trading company of

ICICI Bank. Along with stock trading and trading in
derivatives in BSE and NSE, it also provides facility to invest
in IPOs, Mutual Funds and Bonds. Trading is available in
BSE and NSE.

Type of Account

Share Trading Account

Share Trading Account by ICICIDirect is primarily for

buying and selling of stocks in BSE and NSE.
This account allows Cash Trading, Margin Trading,
MarginPLUS Trading, Spot Trading, Buy Today Sell
Tomorrow and Call and Trade on phone.
ICICIDirect.com website is the primary trading platform
for this trading account. They also provide installable
application terminal based application for high volume
trader.

Wise Investment Account

Along with stock trading and IPO investing in BSE and

NSE, Wise Investment account also provide options to
invest in Mutual Funds and Bonds online.
Online Mutual funds investment allows investor to
invest on-line in around 19 Mutual Fund companies.
ICICI Direct offers various options while investing in
Mutual Funds like Purchase Mutual Fund, Redemption
and switch between different schemes, Systematic
Investment plans, Systematic withdrawal plan and

35
 transferring existing Mutual Funds in to electronic
mode. This account also provides facility to invest in
Government of India Bonds and ICICI Bank Tax
Saving Bonds .

ICICIDirect.com website is the primary tool to invest in

Mutual Funds, IPOs, Bonds and stock trading.

Active Trader Account

Active Trader account gives more personalized

investment options to the investors. It allows investor
to use online and offline stock trading. It also provides
with independent market expertise and support through
a dedicated Relationship Manager from ICICI.
Active Trader also provides commodity trading.

Brokerage and fees :

1. Account opening fees : Rs 750/- (One time non-

refundable)

2. Brokerage : ICICIDirect.com brokerage varies on

volume of trade and inclusive of demat transaction
charges, service taxes and courier charges for contract
notes. It ranges from 0.1% to 0.15% for margin trades,
0.2% to 0.425% for squared off trades and 0.4% to
0.85% on delivery based trades.

36
How to open account with ICICIDirect?

For Online Stock Trading with ICICI, investor needs to open

3 accounts...ICICI Bank Account, ICICI Direct Trading
Account and ICICI Demat Account (DP Account).

Note: If you already have a bank account or demat account

with ICICI, you could link it with new ICICIDirect trading
account.

Opening trading account with ICICI is easy. You could use

one of the following options to open account with
ICICIDirect.

• Visit ICICIDirect.com and fill the "Open an Account"

form.

• Call ICICI and tell them that you are interested in

opening an account with them.

In both the cases ICICI representative contact you in a day

or two and tell you about the procedure to open the account.
They usually send somebody to your home to collect
documents, signature and for demo if required.

Advantages of ICICIDirect

1. 3-in-1 account integrates your banking, broking and

demat accounts. All accounts are from ICICI and very
well integrated.

2. Investment online in IPOs, Mutual Funds, GOI Bonds,

and Postal Savings Schemes all from one website.
General Insurance is also available from ICICI
Lombard.

3. Trading is available in both BSE and NSE.

37
Disadvantages of ICICIDirect

1. Getting access to ICICIDirect.com website during

market session can be frustrating.

2. ICICIDirect brokerage is high and not negotiable.

3. Not all stocks are available under Margin Plus.

ShareKhan

Sharekhan is online stock trading company of SSKI Group ,

provider of India-based investment banking and corporate
finance service. ShareKhan is one of the largest stock
broking houses in the country.

Sharekhan's equity related services include trade execution

on BSE, NSE, Derivatives, commodities, depository
services, online trading and investment advice. Trading is
available in BSE and NSE. Along with Sharekhan.com
website, ShareKhan has around 250 offices around the
country.

Type of Account

Classic Account Trading Terminal

38
Share Khan Classic account

Allow investor to buy and sell stocks online along with

the following features like multiple watch lists,
Integrated Banking, demat and digital contracts, Real-
time portfolio tracking with price alerts and Instant
credit & transfer.

a. Online trading account for investing in Equities

and Derivatives

b. Free trading through Phone (Dial-n-Trade)

I. Two dedicated numbers for placing your

orders with your cellphone or landline.

II. Automatic funds transfer with phone banking

(for Citibank and HDFC bank customers)

III. Simple and Secure Interactive Voice

Response based system for authentication

IV. get the trusted, professional advice of our

telebrokers

V. After hours order placement facility between

8.00 am and 9.30 am

c. Integration of: Online trading + Bank + Demat

account

d. Instant cash transfer facility against purchase &

sale of shares

e. IPO investments

f. Instant order and trade confirmations by e-mail

g. Single screen interface for cash and derivatives

39
 Speed Trade Treading Terminal

ShareKhan Speed Trade account

: This accounts for active traders who trade frequently

during the day's trading session. Following are few
popular features of Speed Trade account:

h. Single screen interface for cash and derivatives

i. Real-time streaming quotes with Instant order

Execution & Confirmation

j. Hot keys similar to a traditional broker terminal

k. Alerts and reminders

l. Back-up facility to place trades on Direct Phone

lines

40
India bulls

India bulls is India's leading Financial Services and Real

Estate Company having presence over 414 locations in more
than 124 cities. India bulls Financial Services Ltd is listed on
the National Stock Exchange, Bombay Stock Exchange,
Luxembourg Stock Exchange and London Stock Exchange.

Type of Account

India bulls Equity Trading Account

India bulls Equity Trading Account is standard Online

trading account from India bulls and along with online
trading it also provides priority telephone access that
gives you direct access to your Relationship Manager
and full access to 'India bulls Equity Analysis'.

Application Trading Terminal (Need Installation)

Power India bulls

Power India bulls trading terminal is the most advanced

new generation trading platform with great speed. This
trading terminal is built in JAVA.

Power India bulls is extremely reach in features

including Live Streaming Quotes, Fast Order Entry and
execution, Tic by Tic Live Charts, Technical Analysis,
Live News and Alerts, Extensive Reports for Real-time
Accounting.

Document Required to open Equity Trading Account with

India bulls

1. One passport size photograph.

2. Proof of bank account

41
 3. Copy of PAN card.

4. Identity proof - copy of passport or PAN card or voter

ID or driving license or ration card.

5. Address proof - copy of driving license or passport or

ration card or voter card or telephone bill or electricity
bill or bank statement.

Brokerage and fees :

1. Account opening fees : Rs 1200/- (One time non-

refundable) as below:
250/- Equity Trading Account opening charge
200/- Demat Account opening charge
750/- Software changes

Advantages of India bulls Equity Trading Account

1. Brokerage is less compare to other online trading

companies.

2. Provide trading terminal 'power bulls', a java based

software. It's very fast in terms of speed and execution.

Disadvantages of India bulls Equity Trading Account

1. Cannot Apply IPO.

2. Need a HDFC account for instant transfer.

42
 ANALYSIS AND INTERPRETATION

Q1.) Reliance Money is a part of:

Reliance Capital Reliance Reliance Energy Reliance
Telecommunicatio Industries
n
150

160 150

140

120

100

80

60

40

20

0
Reliance Capital Reliance Reliance Energy Reliance Industries
Telecommunication

Q2.) Reliance Money is owned by:

Anil Dhirubhai Ambani Mukesh Ambani Don’t Know
150

160
150
140

120

100

80

60

40

20

0
Anil Dhirubhai Mukesh Ambani Don’t Know
Ambani

43
Q3.) Reliance Money deals in
Equity Mutual Funds Life/General Credit Cards All
Insurance
110 70 50 40 40

120
110

100

80
70

60
50
40 40
40

20

0
Equity Mutual Funds Life/General Credit Cards All
Insurance

Q4.) Are you aware of Investment options available in the market?

Yes No
110 40

No
27%

Yes
73%

44
Q5.) Which type of investment would you prefer?
Short term Long term
120 30

Long term
20%

Short term
80%

Q6.) What is the level of your risk tolerance for investment?

Low Risk High Risk Moderate Very High Zero Risk
Risk Risk
70 30 10 20 20

Zero Risk
13%
Very High
Risk Low Risk
13% 47%

Moderate
Risk
7%
High Risk
20%

45
Q7.) Which Risk/Return pattern do you expect from your investment fund?
Low risk/Low Low Moderate High risk/High
return risk/Moderate risk/Moderate return
return return
25 45 50 30

High risk/High Low risk/Low

return return
20% 17%

Low
risk/Moderate
Moderate return
risk/Moderate 30%
return
33%

Q8.) In which sector will you prefer to invest your money?

Govt. sector Private sector Both
60 30 60

Both Govt. sector

40% 40%

Private sector
20%

46
Q9.) In which investment option will you like to put your money?
Securities Fixed Deposits Mutual Funds Insurance
70 110 50 120

120 120
110
100

80
70
60
50
40

20

0
Securities Fixed Deposits Mutual Funds Insurance

Q10.) What is your purpose of Investment?

Children Retirement Marriage of Future
Education Benefit Children contingencies
25 50 30 45

Children
Future Education
contingencies 17%
30%

Retirement
Benefit
Marriage of
33%
Children
20%

47
Q11.) Your yearly average investment?
< Rs.50,000 Rs.50,000∼ Rs.2 lac Rs.2 lac∼ Rs.5 lac
100 25 25

Rs.2 lac-Rs.5 lac

17%

Rs.50,000- Rs.2
lac
17%
Rs.50,000
66%

Q12.) Rank the investment options on a scale of 1to 5. (5 is highest)

IPO Mutual Funds Equity ULIP Fixed
Deposits
1 4 3 2 5
5
5
4.5
4
4
3.5
3
3
Ranks

2.5
2
2
1.5
1
1
0.5
0
Fixed Mutual Funds Equity ULIP IPO
Deposits

48
Q13.) W hat factors you consider while investing your money? (Rank 1 to 5, 1
is lowest)
Tax Benefit Return Benefit Safety Risk
1 4 3 2
4
4
3.5
3
3
2.5
Ranks

2
2
1.5
1
1
0.5
0
Tax Benefit Return Safety Risk
Benefit

Q14.) Do you have a Demat Account, if yes specify the company?

Reliance Money Sharekhan India bulls
50 40 60

Reliance Money
Indiabulls 33%
40%

Sharekhan
27%

49
Q15.) Which type of company would you prefer to invest in under IPO’s?
Large Cap Mid Cap Small Cap
60 50 40

Small Cap
27%
Large Cap
40%

Mid Cap
33%

Q16.) Which type of investment will you prefer for Mutual Fund?
SIP Lumpsum
110 40

Lumpsum
27%

SIP
73%

50
Q17.) Which type of fund you prefer to invest in?
Equity Balance Growth
50 60 40

Growth
27% Equity
33%

Balance
40%

Q18. What are the various sources from where you get the information on
investment options?

Magazines Financial Websites Agents/Relations

Newspapers hip managers
15 45 25 80
80
70
60
50
40
30
20
10
0
Magazines Websites

51
 DISCUSSION
To say that online investing has grown extraordinarily fast over the past
couple of years is akin to describing Marilyn Monroe as reasonably attractive.
While it may be easy to trade on the Net, finding the right online broker takes
some doing.

Given that online trading is still at a nascent stage, online brokers are willing
to offer many options -- brokerages that decline as volumes soar, waiver of
account opening charges, access to research reports, and the facility of
transacting in financial instruments through the trading website. So whom
should you choose? The answer depends on a host of variables -- both
qualitative and quantitative.

Qualitative factors are usually a little hard to assess and largely pertain to
expectations of service standards. It helps to talk to acquaintances who trade
online about the website's reliability, ease of fund transfer and transaction,
and the customer service quality of the e-broker, the only human interface in
the entire mechanism. Nonetheless, there are some key factors that help you
compare e-brokers.

Brokerage. It's a recurring cost and can potentially draw down returns. Every
player claims that his brokerage is the lowest or at least promises to charge
the minimum once an investor opens an account and starts trading. But this
promise is contingent on the trading volumes of the investor.

The brokerage differs from company to company. To give an indicative figure,

ICICIDirect.com charges 0.75 per cent for a quarterly volume of less than Rs
10 lakh (Rs 1 million) and 0.25 per cent for an amount in excess of Rs 5 crore
(Rs 50 million).

The brokerage for the quarter that follows the opening of an online trading
account is determined by the opening amount of investment, irrespective of
the subsequent investments in that quarter.

52
Any amount due to either the broker or investor over and above the brokerage
paid is settled every quarter and the opening amount of the next quarter
determines the brokerage that will be paid in that quarter.

While 5paisa.com has the lowest brokerage -- 0.25 per cent -- on delivery,
Angel Broking offers the lowest -- 0.02 per cent -- on intra-day trading (see A
Comparative Look at Online Brokers).

Position traders -- investors who buy and hold securities for the long haul --
typically opt for low brokerages. Daily traders, who trade in large volumes,
usually settle for what brokers call zero per cent brokerage.

This does not mean that they are not charged brokerage, but alludes to a
fixed brokerage fee irrespective of turnover or up to a certain turnover for a
period of time: higher the investment, lower the brokerage.

For instance, Reliance Money charges Rs 500 for delivery-based volumes up

to Rs 10 lakh (Rs 1 million) for two months. If one trades with 5paisa.com for
the same volume, the brokerage amount will be Rs 2,500 (at the rate of 0.25
per cent brokerage). So, at this volume, Reliance Money scores over
5paisa.com. However, the fixed brokerage of Reliance Money is higher than
5paisa.com's brokerage for investments less than Rs 2 lakh.

For onliners

• Brokerage is a recurring cost. Higher trading volume slabs attract lower

brokerage. You'll also have to pay an annual maintenance charge.

• Some brokers insist on a minimum transaction volume and charge their

lowest brokerage for it.

• Opt for the same depository and trading body to avoid delays in
settlement of shares and cash.

• Margin trading could attract higher brokerage than regular transactions.

• Online brokers provide regular updates on market favourites.

• Pick the online broker with the maximum number of collaborating

banks.

53
 • Check out the website's speed and reliability, ease of fund transfer, and
the e-broker's customer service quality.

• The broker's infrastructure should be able to handle large trade

volumes.

Account opening and maintenance costs. In order to trade, an investor

needs to open two accounts with the brokerage firm - a demat account to
keep the shares and a trading account to trade.

If cost is an issue, you may select Almondz, for instance, since it charges only
Rs 400 for opening an account (see A Comparative Look at Online Brokers),
but do not hold a demat account with one company and a trading account with
another since it delays the settlement of shares and cash.

Another fixed cost is the annual maintenance charge. While some companies
such as Kotak Securities have a high maintenance charge, Almondz,
Religare, Reliance Money, 5paisa.com and India Bulls charge nothing at all.

Minimum trade requirements. Some online brokers insist on a minimum

transaction volume for which they charge their lowest brokerage. For
instance, ICICIDirect.com has set its minimum transaction at Rs 500 and
charges a brokerage of Rs 25 on it. Geojit Financial Services has not fixed a
minimum transaction amount, but the minimum brokerage is Rs 20.

Margin trading. This is available in the online domain and involves paying
only a proportion of the trade value upfront. Such trades could attract higher
brokerage than the regular transactions.

Mostly traders, who go for intraday transactions, go for this form of trading.
Investors typically invest for longer periods and margin trading is not suitable
for them as brokers charge huge interest on the value of the trade that is not
paid upfront.

54
Access to research. Online brokers provide regular updates on market
favourites - stocks to buy, hold or sell - through the Net as well as SMS. Apart
from this, a relationship manager is appointed who works as an intermediary
between the investor and the broker, and plays the helpful tipper.

Investors need to remember amidst the daily onslaught of tips that too much
trading does not necessarily translate into big bucks.

Tie-ups with banks. To trade with a broking company, you need to have an
account with one of its collaborating banks. Typically, broking firms have
fewer collaborations with public sector banks. Almondz scores above others
here since it has tie-ups with numerous private sector banks and 19 public
sector ones.

Apart from the charges mentioned above, an investor is required to pay the
security transaction tax and service tax (including education cess of 3 per
cent), which amount, respectively, to 0.125 per cent of the transaction value
and 12.36 per cent of the brokerage amount. These also raise the cost of the
trade.

55
Buoyed by a tremendous consumer response and with banking on its huge
roll-out plan, ADA Group's brokerage and distribution arm Reliance
Money expects to break-even by the end of the current fiscal.

56
 CONCLUSION AND RECOMMENDATION
CONCLUSION
Investing in various types of assets is an interesting activity that attracts
people from all walks of life irrespective of their occupation, economic status,
education and family background. When a person has more money than he
requires for current consumption, he would be coined as a potential investor.
The problem of surplus gives rise to the question of where to invest.
For an investor the main investment objectives are increasing the rate of
return & reducing the risk other objectives like safety, liquidity & hedge against
inflation can be considered as subsidiary objectives.
While investing in stock market the first step is to assess a company from a
qualitative standpoint and determining whether you should invest in it are as
important as looking at sales and earnings. This strategy may be one of the
simplest, but it is also one of the most effective ways to evaluate a potential
investment.
Moreover growth investors are concerned with growth. The guiding principle
of growth investing is to look for companies that keep reinvesting into
themselves to produce new products and technology. Even though the stocks
might be expensive in the present, growth investors believe that expanding
top and bottom lines will ensure an investment pays off in the long run.
Lastly the Technical analysis is unlike any other stock picking strategy--it has
its own set of concepts, and it relies on a completely different set of
criteria than any strategy employing fundamental analysis. However,
regardless of its analytical approach, mastering technical analysis
requires discipline and savvy, just like any other strategy.
The Indian Capital Market constitutes of various investment options for retail
investors. Recently there has been a change in the investment patterns of
individual investors. The investors have started of taking risk in the capital
markets. They are after the higher returns on their investments and thus they
look towards broking firms for their investments.

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My summer training at Reliance Money was an eye-openers in to the working
of a Broking firm and what all is online trading about. I got an insight into the
need for investment management and the benefits of planned investment.
RECOMMENDATION
The company is a leading financial company recently came up with
online share trading products to become number one online share
trading company, company can reach by following measures:-

• There is potential in the capital market segment.

• People are interested in equity trading.

• Mostly potential lies in employees of BPO and IT sector.

• Due to inaccessible to computer and internet, some people were

reluctant.

• Thrust on promotional activities to make aware of the people

about online trading.

• Flexibility in Brokerage.

• Free demo about the product at the BPO and IT offices.

• Propagating the strict guidelines of SEBI among people.

We suggest following measures, which Reliance Money could take so as to

take on heavy competition from Sharekhan, Kotak Securities, Indiabulls and 5
Paisa
1. To identify regions where promotions are required. Reliance Money still
lacks visibility.
2. Try to reduce cost, so that benefits can be passed on to customers. India
being a price sensitive market, people at times go for monetary benefits
rather than for long term non- monetary benefits.
3. If charges can’t be reduced because of costs involved, make the services
customized, so that services are provided to only those customers who are
willing to pay the price for services they are getting and let the other
customers enjoy costs benefits without getting services.
4. Concept of margin funding should be introduced, as more and more
people are asking for it.

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 BIBLIOGRAPHY

BOOKS:

 Bhalla, V K. Investment management: Security Analysis and

Portfolio Management, 8 th ed; New Delhi, S. Chand, 2001.

 Fischer, Donald E. and Jordan, Ronald J. Security Analysis and

Portfolio Management. 6 th ed; New Delhi, Prentic Hall of India,
1995.

INTERNET LINKS:-

www.investsmartonline.com

www.indiainfoline.com

www.sharekhan.com

www.indiabulls.com

www.icicidirect.com

www.kotaksecurities.com

www.nseindia.com

www.bseindia.com

www.sebi.com

www.econimictimes.com

www.businessstandard.com

SEARCH ENGINE USED:-

http://www.google.com

http://www.yahoo.com

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 QUESTIONNANIRE

Name
Age:
Gender:
Profession:
Address:

Q1.) Reliance Money is a part of:

A1.) Reliance Capital Reliance Telecommunication
Reliance Energy Reliance Industries

Q2.) Reliance Money is owned by:

A2.) Anil Dhirubhai Ambani Mukesh Ambani Don’t Know

Q3.) Reliance Money deals in

A3.) Equity Mutual Funds Life/General Insurance Credit Cards
All

Q4.) Are you aware of Investment options available in the market?

A4.) Yes No

Q5.) Which type of investment would you prefer?

A5.) Short term Long term

Q6.) What is the level of your risk tolerance for investment?

A6.) Low Risk High Risk Moderate Risk Very High Risk
Zero Risk

Q7.) Which Risk/Return pattern do you expect from your investment fund?
A7.) Low risk/Low return Low risk/Moderate return
Moderate risk/Moderate return High risk/High return

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Q8.) In which sector will you prefer to invest your money?
A8.) Govt. sector Private sector Both Other

Q9.) In which investment option will you like to put your money?
A9.) Securities Fixed Deposits Mutual Funds Insurance
Others

Q10.) What is your purpose of Invesatment?

A10.) Children Education Retirement Benefit
Marriage of Children Future contingencies

Q11.) Your yearly average investment?

A11.) < Rs.50,000 Rs.50,000∼ Rs.2 lac Rs.2 lac∼ Rs.5 lac
>Rs.5 lac

Q12.) Rank the investment options on a scale of 1to 5.

A12.) IPO Mutual Funds Equity ULIP Fixed Deposits

Q13.) W hat factors you consider while investing your money?

A13.) Tax Benefit Return Benefit Safety Risk

Q14.) Do you have a Demat Account, if yes specify the company?

A14.) Reliance Money Sharekhan Indiabulls
(if other, please specify).

Q15.) Which type of company would you prefer to invest in under IPO’s?
A15.) Large Cap Mid Cap Small Cap

Q16.) Which type of investment will you prefer for Mutual Fund?
A16.) SIP Lumpsum

Q17.) Which type of fund you prefer to invest in?

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A17.) Equity Balance Growth

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