Documentos de Académico
Documentos de Profesional
Documentos de Cultura
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It is to certify Mr. SUNIL KHANDELWAL of MBA III rd SEM. Has undergone summer training at RELIANCE MUTUAL FUND, ALWAR. project was BRAND PROMOTION AND CUSTOMER SATISFACTION OF RELIANCE MUTUAL FUND His title for the
I have evaluated the project report and his project work is satisfactory.
Date
PREFACE
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Master of business administration (MBA) is one of the most reputed professional courses infields of management. This course includes both theory and application part of the two months required to undergo partial training in an organization, summer training is an exercise by means of which student learn a lot of things which cant be taught in the class of room. During the summer training students come to know about the principal & practices of management application in real working condition in an organization.
The project study is based on BRAND PROMOTION AND CUSTOMER SATISFACTION OF RELIANCE MUTUAL FUND. We carried quite in one of the concern of RELIANCE MUTUAL FUND thought me. The project consists of description of the concept of Advisor recruitment. In this project we also apply research methodology, the interpretation & analysis of the questionnaire gives the final result & conclusion.
SUNIL KHANDELWAL
ACKNOWLEDGEMENT
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I express my sincere thanks to my project guide, Mr.Amit sharma Brand Manager of Reliance Mutual Fund, Alwar, guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project.
I would also like to thank the supporting staff of Reliance Mutual Fund For their help and cooperation through out our project.
SUNIL KHANDELWAL
CONTENTS
1.
SUMMARY/ABSTRACT
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7-8
2.
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3. 4.
BRAND PROMOTION RESEARCH METHODLOGY OF THE STUDY 4.1 Purpose of the study 4.2 Objectives
41-56 57-60
5. 6. 7.
EMPIRICAL ANALYSIS FINDING AND SUGGESTIONS CONCLUSION & RECOMMENDATION ANNEXURE 8.1 QUESTIONARE 8.2. BIBLIOGRAPY
61-70 71 72 73-76
8.
SUMMARY/ABSTRACT
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
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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. 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 AMC 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 are having very less knowledge for mutual funds because of 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.
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The project on the Comparison and analysis of various Mutual fund schemes in India vis a vis Benchmark Index was undertaken as a part of learning process of a Management Student.Mutual funds are popular financial intermediaries and and manage disposable income of the investors so as to bring them benefits of equity investment. The mutual funds in India has caught the attention of millions of investors with diverse interests around the basic principles of investment viz., safety, liquidity and returns
The report provides a comparison of performance of the various mutual funds in India, with respect to S&P CNX 500. Equity mutual funds predominantly invest in company equities and hence are risky investments. While choosing to invest in equity mutual funds ,the investors expect not only risk premium but also better return than the market portfolio.Risk Premium refers to the returns earned by the investopr in excess of risk free return.The key learning from the project was the knowledge of mutual funds and the psychology of the investors.
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.
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.
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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.
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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. Sponsor should contribute at-least 40% of the capital of the AMC. 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. 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.
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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
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For a closed-ended scheme floated on a load basis, the initial issue expenses shall be amortized on a weekly basis over the period of the scheme. Provided that in case the schemes provides for partial redemption during the life of the scheme, the amortization shall take into account the number of outstanding units and the aggregate amount during the relevant periods.For open-ended schemes floated on a load basis, the initial issue expenses may be amortized over a period not exceeding five years. Issue expenses incurred during the life of an open-ended scheme shall not be amortized. In case of closed-ended and open-ended schemes floated on a load basis, the unamortised portion of the expenses shall be included in the calculation of the NAV. However, such portion shall not be included in the NAV for the purposes of determining the asset management companys investment management and advisory fees or for determining the limitation of expenses under regulation 51 of these regulations. For schemes floated on a no-load basis, the asset management company may levy an additional management fee not exceeding 1% of the NAV. The asset management company may be entitled to levy a contingent deferred sales charge for redemption during the first four years after purchase, not exceeding 4% of the redemption proceeds in the first year, 3% in the second year, 2% in the third year and 1% in the fourth year.
By Structure:
o o o
By Investment Objective:
o
Growth Schemes
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o o o
Other Schemes:
o o
A mutual fund scheme can be classified into open-ended scheme or closeended scheme depending on its maturityperiod.
units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.
A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows: Growth / Equity Oriented Scheme: The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Income / Debt Oriented Scheme: The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.
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Balanced Fund: The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.
Money Market or Liquid Fund: These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.
Gilt Fund: These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes. Index Funds: Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as
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"tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.
DIVERSIFICATION:
One rule of investing that both large and small investors should follow is asset diversification. Used to manage risk, diversification involves the mixing of investments within a portfolio. For eg., by choosing to buy stocks in retail sector and offsetting them with stocks in industrial sector, an investor can reduce the impact of the performance of any one security on his portfolio. To achieve a truly diversified portfolio, an investor may have to buy stocks with different capitalizations from different industries and bonds having varying maturities from different issuers. For the individual investor this can be quite costly.
By purchasing mutual funds, an investor is provided with the immediate benefit of instant diversification and asset allocation without the large amounts of cash needed to create individual portfolios. One caveat, however, is that simply purchasing one mutual fund might not give you adequate diversification- check to see if the fund is sector specific or industry specific. For eg., investing in an oil and energy mutual fund might spread your money over fifty companies , but if energy prices fall, your portfolio will likely suffer.
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ECONOMIES OF SCALE:
The easiest way to understand economies of scale is by thinking about volume discounts: in many stores the more of one product you buy, the cheaper that product becomes. For eg., when you buy a dozen apples, the price per apple is cheaper than buying a single one. This occurs also in the purchase and sale of securities. If an investor buys only one security at a time, the transaction fee will be relatively large. Mutual funds are able to take advantage of their buying and selling size and thereby reduce transaction costs for investors. When an investor buys a mutual fund, he is able to diversify without the numerous commission charges. Imagine if you had to buy the 10-20 stocks needed for diversification. The commission charges alone would eat up a good chunk of your savings.
PROFESSIONAL MANAGEMENT:
Mutual funds are managed by a team of professionals, which usually includes one mutual fund manager and several analysts. Presumably, professionals have more experience, knowledge, and information than the average investor when it comes to deciding which securities to buy and sell. They also have the ability to focus on just a single area of expertise.
POTENTIAL RETURN:
Mutual funds have the potential to provide a higher return to an investor than any other option over a reasonable period of time.
LOWER RISK:
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Mutual Funds invest the money in a large number of securities, thereby spreading the funds invested over a large number of securities and at times even over different asset classes within the same scheme. Investment in a large number of securities, and different asset classes reduces the risk to which an ordinary person investing by himself might be exposed.
LIQUIDITY:
The investor can get the money promptly at the net asset value related prices from the Mutual Funds open-ended schemes. In closed-ended schemes, the units can be sold on a stock exchange at the prevailing market price.
TRANSPARENCY:
Mutual Funds have to disclose their holdings, investment pattern and the necessary information before all investors under a regulation framework.
FLEXIBILITY:
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Investments in Mutual Funds offer a lot of flexibility with features of schemes such as regular investment plan, regular withdrawal plans and dividend reinvestment plans enabling systematic investment or withdrawal of funds.
There are certainly some benefits to mutual fund investing, but we should also be aware of the drawbacks associated with mutual funds.
NO GUARANTEES:
No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money.
TAXES:
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During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the income you receive, even if you reinvest the money you made.
MANAGEMENT RISK:
When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected.
CAPITAL GAINS BENEFIT UNDER SECTION 112 OF THE INCOME TAX ACT, 1961
Long-term capital gains in respect of Units held for a period of more than 12 months will be chargeable under Section 112 of the Income Tax Act, 1961, at a concessional rate of tax @ 20% (excluding surcharge) From the full value of consideration, the following amounts would be deductible to arrive at the amount of capital gains: Cost of acquisition as adjusted by Cost Inflation Index notified by the Central Government and Expenditure incurred wholly and exclusively in connection with such transfer Investors can also opt to pay tax @10% (excluding surcharge) on such Long Term Capital Gains, but without the cost inflation indexation benefit
INCOME PLAN:
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Under the income plan, the investor realizes the income in the form of dividend. However his NAV will fall to the extent of the dividend.
As opposed to systematic investment plan, the systematic withdrawal plan allows the investor the facility to withdraw a pre-determined amount/units from his fund at a pre-determined interval. The investors units will be redeemed at the existing NAV as on that day.
Method of Computation:
S&P CNX 500 is computed using market capitalisation weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value.
Market Capitalisation:
A companys rank on market capitalisation is an important consideration for its inclusion in the Index.
Industry Representation:
S&P CNX 500 Equity Index reflects the market as closely as possible. In order to ensure that this is accomplished, industry weightages in the index mirror the industry weightages in the universe. Consequently, companies to be included in the index are selected from the industries which are under represented in the index. S&P CNX 500 Equity Index currently contains 72 industries, including one category of diversified companies and one category of miscellaneous. The number of industries in the Index and the number of companies within each industry have been kept flexible, in order to ensure that the Index retains its objective of being an dynamic market indicator.
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Sponsor Company
Hold unit holders funds in mutual fund. Enters into an agreement with SEBI.
Custodian
Registrar
Distributors
COMPANY PROFILE
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Reliance Mutual Fund is one of Indias leading Mutual Funds, with Average Assets under Management (AAUM) of Rs. 90,938 Cores (AAUM for Mar 12). Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest growing mutual funds in the country. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund constantly endeavors to launch innovative products. "Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital. Reliance Capital Ltd. is 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. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services.
Statutory Details:
Investment Manager: Reliance Capital Asset Management Limited. General Risk Factors: Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on the factors and forces affecting the capital markets. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. The Mutual Fund is not guaranteeing or assuring any dividend/ bonus. The Mutual Fund is also not assuring that it will make periodical dividend/bonus distributions, though it has every intention of doing so. All dividend/bonus distributions are subject to the availability of the distributable surplus in the Scheme. For details of scheme features and scheme specific risk factors, please refer to the provisions of the offer document.Reliance Mutual
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Fund has won the "Most Trusted Mutual Fund Brand" for the second year, in succession by Economic Times - AC Nielsen ORG-MARG survey. Reliance Mutual has completely withdrawn the restriction/upper limit imposed on subscription in Reliance Equity and Reliance Growth schemes with effect. Fresh and additional subscriptions including systematic investment plans will henceforth be accepted without any limit, subject to the minimum subscription amount for each scheme.To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unit holders; To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings.To take such steps as may be necessary from time to time to realise the effects without any limitation.
Vision Statement
To be a globally respected wealth creator with an emphasis on customer care and a culture of good corporate governance.
Mission Statement
To create and nurture a world-class, high performance environment aimed at delighting our customers.
Corporate Governance
Reliance Capital Asset Management Ltd. has a vision of being a leading player in the Mutual Fund. However, an imperative part of growth and visibility is adherence to Good Conduct in the marketplace. At Reliance Capital Asset Management Ltd., the implementation and observance of ethical processes and policies has helped us in standing up to the scrutiny of our domestic..
Management:
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The management at Reliance Capital Asset Management Ltd. is committed to good Corporate Governance, which includes transparency and timely dissemination of information to its investors and unit holders. The Board of Directors of RCAM is a professional body, including well-experienced and knowledgeable Independent Members.
Employees:
Reliance Capital Asset Management Ltd. has at present, a code of conduct for all its officers. It has a clearly defined prohibition on insider trading policy and regulations. The management believes in the principles of propriety. All personnel at Reliance Capital Asset Management Ltd are made aware of their rights, obligations and duties as part of the Dealing Policy laid down in terms of SEBI guidelines. They are taken through a well-designed HR program, conducted to impart work ethics, the Code of Conduct, information security. One of the core objectives of Reliance Capital Asset Management Ltd. is to identify issues considered sensitive by global corporate standards, Reliance Capital Asset Management Ltd. gives top priority to compliance in true letter and spirit, fully understanding its fiduciary responsibilities.
COMPANY SCHEMES
Equity/Growth Schemes
Reliance Natural Resources Fund:
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(An Open Ended Equity Scheme) The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in companies principally engaged in the discovery, development, production, or distribution of natural resources and the secondary objective is to generate consistent returns by investing in debt and money market securities.
Reliance Equity Fund: (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 constituted of equity & equity related securities of top 100 companies by market capitalization & of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing.
Reliance Tax Saver (ELSS) Fund: (An Open-ended Equity Linked Savings Scheme.) The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity. Reliance Equity Opportunities Fund : (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 constituted of equity securities & equity related securities and the secondary objective is to generate consistent returns by investing in debt and money market.
Reliance Vision Fund : (An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to achieve long term growth of capital by investment in equity
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and equity related securities through a research based investment approach. Reliance Growth Fund : (An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to achieve long term growth of capital by investment in equity and equity related securities through a research based investment approach.
Reliance Quant Plus Fund (Formerly known as Reliance Index Fund) : (An Open Ended Equity Scheme.) The investment objective of the Scheme is to generate capital appreciation through investment in equity and equity related instruments. The Scheme will seek to generate capital appreciation by investing in an active portfolio of stocks selected from S & P CNX Nifty on the basis of a mathematical.
Reliance NRI Equity Fund : (An open-ended Diversified Equity Scheme.) The Primary investment objective of the scheme is to generate optimal returns by investing in equity or equity related instruments primarily drawn from the Companies in the BSE 200 Index.
Reliance Regular Savings Fund: (An Open-ended Scheme.) 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. Balanced Option : The primary investment objective of this option is to generate consistent returns and appreciation of capital by investing in mix of securities.
Reliance Long Term Equity Fund: (An close-ended Diversified Equity Scheme.) The primary investment objective of the scheme is to seek to generate long term capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity &
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equity related securities and Derivatives and the secondary objective is to generate consistent returns by investing in debt and money market securities.
Reliance Equity Advantage Fund: (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.
Debt/Liquid Schemes
Reliance Monthly Income Plan : (An Open Ended Fund. Monthly Income is not assured & is subject to the availability of distributable surplus ) The Primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unitholders. Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt Plan: Open-ended Government Securities Scheme) The primary objective of the Scheme is to generate Optimal credit risk-free returns by investing in a portfolio of securities issued. Reliance Income Fund : (An Open-ended Income Scheme) The primary objective of the scheme is to generate optimal returns consistent with moderate levels of risk. Reliance Medium Term Fund : (An Open End Income Scheme with no assured returns.) The primary
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investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unitholders.
Reliance Short Term Fund : (An Open End Income Scheme) The primary investment objective of the scheme is to generate stable returns for investors with a short investment horizon by investing in Fixed Income. Reliance Liquid Fund :
(Open-ended Liquid Scheme). The primary investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Reliance Floating Rate Fund : (An Open End Liquid Scheme) The primary objective of the scheme is to generate regular income through investment in a portfolio comprising substantially of Floating Rate Debt Securities (including floating rate securitised debt and Money Market Instruments and Fixed Rate Debt Instruments swapped for floating rate returns). The scheme shall also invest in Fixed rate debt Securities (including fixed rate securitised debt, Money Market Instruments and Floating Rate Debt Instruments swapped for fixed returns. Reliance NRI Income Fund :
(An Open-ended Income scheme) The primary investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risks. This income may be complimented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in debt Instruments. Reliance Liquidity Fund :
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(An Open - ended Liquid Scheme) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. Reliance Interval Fund: (A Debt Oriented Interval Scheme) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio.
Reliance Liquid Plus Fund (An Open-ended Income Scheme.) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities.
Reliance Fixed Horizon Fund I (A closed ended Scheme) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio. Reliance Fixed Horizon Fund II (An closed ended Scheme.) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio. Reliance Fixed Horizon Fund III
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(An Close-ended Income Scheme.) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio Reliance Fixed Tenor Fund (An Close-ended Scheme.) The primary investment objective of the Plan is to seek to generate regular returns and growth of capital by investing in a diversified portfolio. Reliance Fixed Horizon Fund -Plan C (An closed ended Scheme.) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio.
Reliance Banking Fund Reliance Mutual Fund has an Open-Ended Banking Sector Scheme which has the primary investment objective to generate continuous returns by actively investing in equity / equity related or fixed income securities of banks. Reliance Diversified Power Sector Fund
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Reliance Diversified Power Sector Scheme is an Open-ended Power Sector Scheme. The primary investment objective of the Scheme is to seek to generate consistent returns by actively investing in equity / equity related or fixed income securities of Power and other associated companies. Reliance Media & Entertainment Fund Reliance Media & Entertainment Fund is an Open-ended Media & Entertainment Sector scheme. The The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of media & entertainment and other associated companies
It's time you experienced the ease and convenience of transacting online. You can now purchase, redeem or switch your units of Reliance Mutual Fund schemes at www.reliancemutual.com. You can also check your account
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statement, fill in and submit the application form as well as view and download Offer Documents. You can do all this from the comfort of your home or office. Here s a simple step-by-step online transaction guide that will help you get started. Online Transaction Customers can purchase, switch or redeem their Reliance Mutual Fund units through online. Online Payment: When customers can choose Online Payment, they will be directed to the Payment Gateway Page, where they have to choose one of the banks to make the payment. Once they select their bank, they will be directed. Cheque Payment: If they choose to make the payment by Cheque, they will need to download and print the application form by clicking on the link provided. They need to simply sign this form and submit it at the nearest Investor Service Centre (ISC), along with their cheque. The transaction reference number should be written on the reverse of the cheque before submission. The ISC will acknowledge receipt of the same and send their application for further processing. Till now in the part of MT research understood the products and features of mutual funds and gather complete information on Mutual Fund Industry . Studied completely about products of Reliance Mutual funds and their performance levels and also studied value added services offered by Reliance Mutual Fund AMC to the customers . Met company executive to know about the performances of the products in our region and also customer perception on Reliance Mutual Funds . Prepared a questionnaire to measure customer satisfaction on Reliance
Mutual Funds . Gather some customers information list from Reliance Mutual Fund office, Guntur . The customers of Reliance Mutual funds are mainly business people, employees and Institutional Investors .The Mutual fund customers are risk averse .They expect high returns from less risk .Customers have different views regarding Mutual fund investments . They are in dilemma whether to invest in Bear market or Bull market . The investment objective is varies from customers to customer .There are different objectives like Growth Fund, Income Fund, Balance Fund.
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BRAND PROMOTION OF RELIANCE OF MUTUAL FUND Marketing Mix of RELIANCE Mutual Fund PRODUCT MIX
A PRODUCT IS ANY THING THAT CAN BE OFFERED TO MARKET FOR ATTENTION, ACQSITION USE OR CONSUMPTION THAT SATISFY A WANT OR NEED
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In case of Mutual Fund Industry, the product mix comprises of various types of funds that are offered to the customer by the companies.Subject to the SEBI regulations, an AMC is free to design its schemes/product to suit the needs of the various types of investors. Mutual Fund in India presently offers more than 400 products/ services/ options/ plans across various categories. The product mix of the Mutual Fund Co. includes all different product lines a company innovates to cater to the needs such as financial objective, risk tolerance, return expectations, etc. The product line of a fund might easily include many different schemes. In today's competitive scenario, it has become very necessary for an AMC to provide its customer with a wide variety of schemes & the best performance to attract them. .
Any product is not made in one level it has many levels like wise mutual fund has to go under various levels to become a final product these are
Basic Product: -
i.e. partial selling of units, Better Returns, is the expected facilities which are very necessary for the success of the Mutual fund scheme
E-pin facility, Sending quarterly or half yearly details to the customer are the benefits helps the customer to select the Mutual fund scheme, .
Potential Product:-Selling New Scheme at a discount price Providing
other Portfolio services SMS Facility to Know the Mutual fund scheme Details, etc
These are the different levels of the product Which a AMC should keeps in mind and designs a Scheme for offering it to people a different mix is used for fulfilling different Purpose of the customers and by analyzing different Purpose of people at different stages different types of plans are designed, New Product Development The most important component of product Management is The New Product Development as when things are changing the Purpose i.e. objective of people to take buy Mutual fund are changing so giving same product to the customer would be very bad for the growth of the of the company An AMC which is growth oriented always looks beyond its existing product or service. And develops there quality services and also develop new products/Schemes
Development of the services given by Mutual Fund industry Before when the mutual fund was introduced in the economy the service provided by them was not satisfactory the procedures of sending application and receiving Scheme documents was very
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lengthy and time consuming and if a person A wish to sell his units to a person B than also it was not a easy job to transfer the units or sell the units back to the company but as a time has passed the service delivered by the AMC to the unit holders have improves now every thing is computerized one can buy, sell, its units partially and wholly through the demat A/c with a very less period of time he gets his cheque if he sells his units and now the AMC sends the quarterly or half yearly reports of the growth of the funds to their unit holders which help them a lot in their decision making
PRICE MIX
The price is the exchange value for a product or service, expressed in terms of money. The price of the service is the service value attached to it by the service provider and it must respond with the customer perception of value. Price is the only P, which generates revenue for the company. While pricing a great care should be taken as, it is two-sided sword so it should neither be priced high nor low it should be priced according to the situation. Pricing is an important tool in the hands of the marketer Price in mutual fund industry In Mutual Fund Industry, the entry load and the exit load, which a customer pays for the Scheme, is the price of the Mutual fund scheme, the price factor also includes the various charges, which can are called as Recurring Expenses. These all price/charges which a customer or a buyer pays is for the following expenses of the AMC.
$ Marketing Expenses $ Operational/ Administrative Expenses $ Fund Managers fees $ Commission for distributors $ Miscellaneous Expenses, etc.
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Price in any industry is largely influenced by cost in this the cost of managing the funds and providing with him timely services is decided at the starting point i.e. when the scheme is introduced There are four basic kinds of costs associated with owning mutual funds: Management Fees These are paid to the company that manages the investment portfolio Distribution Fees These are paid to the broker or adviser that sells the fund and services the account. In some cases, it's a straight up-front sales commission ("load") or a surrender fee you pay when you sell the fund. But other funds "no-loads" may charge an annual "12b-1 fee." It seems small compared with a sales commission except that it nicks you year after year after year. (In still other cases, the fund manager simply uses part of its management fee to pay for marketing and distribution. You thought that hefty fee was going to a team of brilliant analysts, but some of it was going to pay brokers or buy ads.)
Transaction Costs These are incurred by the fund as it buys and sells securities. Trading costs money, and it comes out of your money. There are brokerage commissions, of course. (And they are not always rock bottom. Sometimes, to keep its reported management fee low, a fund will pay for investment research with what are called "soft dollars" higher commissions than they might otherwise have to pay.) Beyond commissions, there are spreads. With a Picasso, a gallery that would sell it to you for ten million might buy it from you for only five. With 10,000 shares of a stock, the spread between "bid and ask" prices will be much smaller but meaningful nonetheless. And there's another aspect to this. If you or I want to trade 500 shares of stock, it rarely "moves the market." What we add to the supply (if we're selling) or demand (if we're buying) is insignificant. But what if, like a mutual fund, we were trying to buy or sell 200,000 shares let alone in a hurry? We might sell the first 5,000 shares at 50, but have to
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accept as little as 49 or 48, on average, to move them all. Buying, we might find that our demand for these shares had bid their price up to 51 or 52 by the time we had gotten them all. Mutual fund managers are generally sensitive to this, of course, and attempt to trade cheaply and wisely. But the same Mark Car hart quoted above found that, on average, a fund with 100% annual turnover give up nearly 1% in transaction costs. A fund with 25% turnover would give up only a quarter as much. A fund with 300% turnover three times as much. Transaction costs are not incorporated in a fund's "total expense ratio." They are taken directly out of shareholder assets. Taxes The fund itself does not pay taxes. Shareholders who own the fund in taxable accounts pay taxes on dividends and capital gains distributed by the fund. And there's reason to think that many fund managers don't worry too much about this. Indeed, because they know shareholders feel good when they get distributions, some will actually realize gains unnecessarily, just to have something to distribute. This may be good marketing, but it's bad financial strategy.
Types of Distribution channels: The following are the various types of Distribution channels used by the Mutual Fund companies
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Distributio n Companie s
Direct Marketing
Individual Agents
Post Offices
Availing of the services of established distribution companies is a practice accepted by mutual funds internationally. This practice evolved with a view to circumvent the huge administrative mechanism required to support a large direct sales force. Instead of having to deal with several individual distributors, a fund can interact with the distribution company that has several employees or sub-brokers under it. A distribution company usually manages distribution for several funds simultaneously and receives commission for its services. Many private funds have preferred to adopt this practice because of its sophisticated nature and because they benefit from the specialist knowledge and established client contacts of these marketing firms. In India, there are few large distribution companies in addition to a few hundred smaller ones.
The following can be the Distribution Companies: a. Banks and NBFCs: In developed countries, banks are important marketing vehicles for mutual funds, given that banks themselves have large depositor/client base of their own. Over the past years, we have seen the opening up of this new channel in India. Several banks (private, public & foreign) are involved in fund distribution
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by providing services similar to those of distribution companies, on a commission basis. Some non-banking companies also provide such services. Most funds now use this channel. An increasing use of bank networks for mutual fund distribution has been a major recent development.
b. Post Offices: Many mutual fund companies have begun tie-ups with Post Offices for distribution of their schemes. This opens up yet another channel for fund distribution, one that will cover possibly the widest geographical area.
2. Individual Agent as Distributors: Use of agents has been the most widely prevalent practice for distribution of funds over the years. By definition, an agent acts on behalf of a principal- in this case, the mutual fund. An agent is essentially a broker between a fund and the investor. In India, we also have unique system whereby a broker has a number of sub-brokers working under him. The vast sub-broker network ensures a larger geographic coverage than otherwise.
The Mutual Fund agents are not exclusive but usually sell other financial products as well. The system has the advantage that the distributor has a broader knowledge of financial services available, and is therefore potentially in a position to act as investment advisors. Investors expect the right kind of the recommendations from the agent. From the perspective of the mutual funds themselves, such multi-product distributors mean loss of exclusivity in the marketing of their particular products. However, the drawback can be converted into a benefit for the funds, if the agents are properly trained in their role and responsibility as financial advisors to investors.
3. Direct Marketing:
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Direct marketing means that the mutual funds sell their own products without the use of any intermediaries. Usually, this takes the form of the sales officers and employees of the AMC approaching the investors and accepting their contribution directly. However, in India independent individual distributors may really be treated as a direct marketing channel, in this sense that they do not form a well-knit, independent and organized single entity and act more liked fund agency force. Other channels like the distribution companies or banks or even stockbrokers are clearly distinct and independent intermediaries. in liquid and/or income funds targeted at companies, funds often resort to direct marketing. The greatest challenge in the mutual fund distribution is the choosing the right channels, convicting them to work as partners, the higher the number of channels, the greater the companys Market coverage and rate of growth of its sales. The place does not only means creating the distribution agents, but also having support office for these distribution agents at proper places which can be easily assessable by these distribution agents so that they can easily submit the application form with these offices The new innovation in place has came out for the individual agents because organization like NJ Fundz Network, J P Morgan, etc are developed to help them by reducing there burden to register with all the AMUs now they can get themselves register with all only by registering to one organization, by this the Agents are increasing very fast.
abc
9/14/2007
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Sales Promotion
Promotio
Direct Marketin g
n Mix
Sponsors hip
Tools
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Advertisement
Personal Selling
Off the above seven all are used by the Mutual fund industry the important one are advertising, sales promotion, word of mouth communication, and the sales promotion but the advertisement is the expensive tool of promotion and effective too
The expresses for making add concept and other related expenses are very high, but there is a restriction on these expenses that an AMC can not go beyond 1% of the total expected collection through the fund PEOPLE In service industry like Mutual Fund the true strength lies with its people, as it is the industry with Money Management, People are the most important part of the organization People in any organization can be classified as in service triangle which consist of Firm/ Management Firm/ Management Employees Customers
Employees
Customers
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The mutual fund also all the three kinds are their firm/ management customers and the employees of the firm, for the successful growth of AMC a firm must have a strong Management Good finance Trained and motivated employees and the loyal customers if all the things are achieved the success is in the hands of the company
In Mutual Fund sector, the customer needs to be guided in a lot of matters, which is possible only with the help of the service provider. The position in the eyes of the customer will be perceived by appearance, attitude and behavior of the customer contact employees. Not only does the customer contact employee influence the customers perception but also the customer base of the organization does so.
In the mutual fund industry for the distribution of the mutual fund from the producer till the consumers various kinds of people are involved without which the delivery process could not have been possible these people are
PROCESS
Process refers to how a service is provided or delivered to a customer. In Mutual fund process is the very important part of marketing mix the over all process of the mutual fund should be fast accurate, and should be easy for the consumers as well as the distributors This is the processes involved in providing a service and the behavior of people, which can be crucial to customer satisfaction. Smart AMCs set out
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processes and set themselves targets to ensure a high quality of service to customers. The following are the requisites of a Mutual Fund process Method should be easy and convenient Speed and accuracy in payment Friendly for the Customers and Distributors Installment schemes should be streamlined to cater to the ever growing demands of the customers Efficient IT and data warehousing system Technology not only be efficient but also cost effective as the cost is ultimately bared by the customer Lets take for example the process for application for a particular fund from Fund Company. Now this mainly involves following things:
1. The company provides Offer document to the investors with a description of the procedure for purchase of units with respect to the required application form, permissible places of payments, minimum subscription required (for new applications and additional units).
2. The funds appoint registrars for the purpose of accepting the request
for new subscriptions and redemptions from the investors. Investors and distributors need to know which registrar or center would be the most conveniently located for them.
3. The key Information Memorandum contains the application form to be filled by the investors. The form is generally distributed through many distributors such as agents or banks and can also picked up by directly from the offices of the Asset management company. Some funds permit the investors to apply through the internet, instead of filling up a physical application form.
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4. The application form has to be accompanied by payment of the amount to be invested. The mode of payment is usually by cheque, demand draft or cash (in certain cases). Investors are also now required to submit the photocopy of the PAN (Permanent account Number) with the application form.
5. Once the investors submit the application form then the units of the funds are allocated to the investors with in 40 working days. The units are allocated as per the NAV of the fund on the day of allotment. 6. And finally the documents i.e. physical evidence is sent to the customers the investors of the mutual fund scheme.
The process should be as simple as it can be, so that the customer is able to understand what steps he should follow to invest in Mutual Fund, and also how he can easily get back his money with good returns.
Physical Evidence
Physical Evidence is termed as the social environment along with the tangible cues. Unlike a product a service cannot be experienced before it is delivered, which makes it intangible, this therefore means that potential customers perceive greater risk when deciding whether or not to use a service. To reduce the feeling of risk, thus improving success, it is often vital to offer potential
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customer the change to see what a service would be like. This is done by providing physical evidence.
Physical evidence include all the efforts taken by the service provider to tangibilise their services, they are: a. Physical facilities, and b. Physical environment. c. Social settings The following is the detail coverage of all efforts taken by the service provider to tangibilise their product:
a. Physical facilities:
On the basis of physical evidence like building, furniture, equipment, stationery, etc the investors forms an impression about the fund company. Physical evidence includes essential evidence and peripheral. Essential evidence is the technical facilities without which the service delivery is not possible. In mutual fund industry the essential facilities include the technical facilities through which the daily subscription of the mutual fund scheme is done and the very important calculating NAV and giving the information of the same to the consumer The peripheral evidence can actually change hands during the services transaction, they include stationary, brochures, account statement, E-pin i.e. internet id where he can get all information and can buy and sell, though services can be performed without these items, still they can be used to enhance the corporate image of an Asset Management Company.
b. Physical environment:
Another factor influencing consumer expectations of service quality and satisfaction of service quality and satisfaction is the physical setting or the service environment within which the services take place. The important elements of physical settings are like no of offices, branches, etc of the fund
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company. This is the good marketing tool. As many a times customers are attracted towards the appearance of the office of a company. They make a perception that if the office is good then the service will be good. This happens with big customers like big companies which invest crores of money in the funds so the Fund companies should also give importance to the physical evidence.
c. Social settings The social settings has a great and wide importance in the Mutual Fund industry The appearance of the service personnel is the major aspect of the social settings that influence the consumer attitude about the service personnel The appearance of a person that agent who is in front with the customer is very much important he should be well groomed, well dressed, and should be friendly in his approach most important he should have knowledge about the insurance industry other products, so that he can give the advice according to the needs of the customer and can help him to invest in the best fund which suits his investment objective and he should be very much confident while taking to the customer as its confidence win the customer confidence about the company and the scheme.
It is rightly said that the sales in Mutual Funds sales takes palace 50% by the name of company, product features, etc and the remaining 50% buy the social settings.
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OBJECTIVES
The following are the objectives of the Management Thesis.
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To understand the different investment options provided by RELIANC mutual funds through its mutual fund schemes. To know the investors expectations on mutual funds offered by RELIANCE mutual funds. To know the various services provided by RELIANCE AMC to its investors. To study the satisfaction levels of customers in RELIANCE mutual funds. To identify how the brand building helps in meeting the customers expectations to meet their investment objectives.
Sample size
Sample size: sample size for the survey is 100.
Visiting the organization (Observation Techniques) Using structured questionnaire for the existing customer.
Type of sampling: stratified random sampling technique is used for collecting the primary data. customers, Guntur The data is collected only from RELIANCE mutual fund
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bar charts and pie charts are the tools that will
Research Design:
Reserarch to be conducted mainly on exploratory study only. In exploratory research, the focus is on the discovery of ideas.An exploratory study is generally based on the secondary data that are readily available. It does not have a formal and rigid design as the researcher may have to change his focus or direction, depending on the availability of news ideas and relationships among variables.
PARAMETERS OF COMPARISON
1. BETA
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Beta compares mutual funds volatility with that of a benchmark and is supposed to give some sense of how far we can expect a fund to fall when the market takes a dive, or how high it might climb if the bull is running hard. A fund with a beta greater than 1 is considered more volatile than the market; less than 1 means less volatile.
2.
RISK-RETURN METHOD
The Relative-to-Benchmark measure is very simplistic, as it does not incorporate any measure of risk in its calculation. An investor would naturally be interested in finding out the return generated for the risk undertaken, as, in a bid to generate super normal return, the fund may go overboard on the risk parameter. Therefore, risk adjusted measures of return are needed to measure the performance of funds. There are several such measures prominent among which are the Sharpe ratio, the Treynor ratio, and Alpha:
SHARPE
RATIO
This measure uses standard deviation as a measure to evaluate a fund's riskadjusted returns. The higher a fund's Sharpe ratio, the better it is i.e. a fund's returns would be regarded good if the fund returns a high level of Sharpe ratio. Mathematically, it is arrived at by deducting the risk free returns from the returns generated by the fund and dividing the residual figure by the standard deviation of the fund's returns. One thing that has to be kept in mind while using this measure is that the ratio is not an absolute figure. Its real utility lies in inter scheme comparison.
TREYNOR'S
RATIO
The other measure Treynor's ratio also has the same attributes with the difference that the residual figure in this case is divided by beta rather than the standard deviation, thus reflecting only the systematic risk. Beta of the fund is a volatility measure that quantifies sensitivity of the fund's return to the benchmark index's returns i.e. given the movements of the benchmark how much the fund will move. It does not give representation to unsystematic risk under the assumption that the
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fund manager can easily wipe out the unsystematic risk by diversifying across a large number of stocks.
EMPIRICAL ANALYSIS
Q.AT WHAT PERCENTAGE RESPONENTS INVESTS IN MUTUAL FUND, ACC.TO THEIR AGE GROUPS? RESULT:
TABLE: 1
AGE
0-18 18-36 36-54 54-72 72 & ABOVE
NO OF RESPONDENTS
0 40 50 10 0
CHART 1
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Inference: The majority of the respondents i.e. 46% are from the age group
of 36-54. And the second largest age group is 18-36. And the remaining investors are from 54-72 age group.
Table-2
Q.
WHICH
FUND
STRUCTURE
MOSTLY
INVESTORS
PREFFERD?
Structure of the fund Open ended fund Close ended fund Interval funds Total No of investors preferred 64 24 12 100
CHART - 2
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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 Table-3
Q.
MOSTLY
PREFFERED
BY
THE
CHART - 3
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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. Table-4
CHART - 4
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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
Table-5
Q.
AT
WHICH
PERCENTAGE RESULT:
REPEATION
OF
RESPONSE
YES NO TOTAL
NO OF RESPONDENTS
64 36 100
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Chart-5
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.
Q. AT WHICH PERCENTAGE INVESTORS GETTING MONTHLY / QUARTERLY STATEMENTS FROM TIME TO TIME ?
No of Investors 70 30
Yes No
CHART - 6
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Noof Investors
70 60 50 40 30 20 10 0 No of Investors Yes 70 No 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
e l t T s i x A
Table-7
Q.GRADE THE CUSTOMER SERVICE OF RELIANCE WITH REGARDS TO MUTUAL FUNDS ON SCALE OF 1-5?
RESULTS:
RANKS
ONE TWO THREE FOUR FIVE Chart-7
NO OF RESPONDENTS
34 16 26 16 8
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Inference: Out of 100 respondents 34 ranked RELIANCE as AMC one for customer service function. Table-8
AREAS
CUSTOMER SERVICE MONITORING OF FUND AGENTS TRAINING OTHERS TOTAL Chart-8
NO OF RESPONDENT
35 38 22 5 100
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Inference:
Table-9
Q.ARE YOU SATISFIED WITH THE REDEMPTION FACILITIES PROVIDED BY RELIANCE AMC?
RESULT:
Satisfaction about Redemption facilities Yes No 65 35 No of Investors
Chart-9
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Inference:
RESULT:
VALUE ADDED SERVICES
ATM Ecs Online transaction Direct investment
NO OF RESPONDENT
0 60 20 40
CHART-10
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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.
t 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
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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 AMC one for customer service function.
It was found that Out of 100 respondents 38 respondents want RELIANCE to improve at their fund monitoring function
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 emphasis on the monitoring of funds which directly relates to the returns of a specific fund. The company should use brand ambassadors for example the CEOs of major companies where the company allocate the funds. This will probably ensure proper results.
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The company should focus on the advertising strategy and also the marketing of the product. The company should emphasis 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.
QUESTIONNAIRE
NAME: PROFESSION: 1. AT WHAT PERCENTAGE RESPONENTS INVESTS IN MUTUAL FUND, ACC.TO THEIR AGE GROUPS? 0-18 54-72 [ ] [ ] 18-36 72&Above [ ] [ ] 36-54
AGE:
[ ]
2.WHICH FUND STRUCTURE MOSTLY INVESTORS PREFFERD? Open-ended fund Close-ended fund [ [ ] ]
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Internal funds
3.WHICH SCHEMES MOSTLY PREFFERED BY THE INVESTORS IN ? Growth Scheme Income Scheme Balanced Scheme [ ]
[ ] [ ]
4.WHICH TYPE OF FUNDS MAINLY INVESTORS PREFFERED ? Tax Saver fund Index fund Sectorial fund [ ] [ ] [ ]
6.AT WHICH PERCENTAGE INVESTORS GETTING MONTHLY / QUARTERLY STATEMENTS FROM TIME TO TIME?
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Yes
No
[ ]
7.GRADE THE CUSTOMER SERVICE OF RELIANCE WITH REGARDS TO MUTUAL FUNDS ON SCALE OF 1-5? One Four [ ] [ ] Two [ ] Five [ ] Three [ ]
8. IN WHAT AREAS DO YOU WANT RELIANCE MUTUAL FUNDS TO IMPROVE? Customer Service Monitoring of fund Agents Training Others [ ] [ ] [ ] [ ]
9.ARE YOU SATISFIED WITH THE REDEMPTION FACILITIES PROVIDED BY RELIANCE AMC? Yes [ ] No [ ]
10.WHICH VALUE ADDED SERVICES INVESTORS ARE USING? ATM Online Transaction [ ] [ ]
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[ ] [ ]
BIBLIOGRAPHY
2. Webliography
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