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report
COMPETITIVE Advantage of
trading in reliance money
PREPARED BY
Manaswini Mohanty
Under the guidance of
Corporate Guide
Mr.Sudhansu Parida
Institute Guide
Mrs.Sasmita Mishra
CONTENTS:
serial
no
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Page
Topic
Certificate by Organization
Certificate by Faculty guide
Acknowledgement
Declaration
Executive Summary
Introduction and Review Of Literature
Company Profile
Competitors Of Reliance Money
Trading Portal
Research Methodology
Findings
Recommendations and Limitations
Conclusion
Bibliography
Annexure(Questionnaires)
DECLARATION
no.
MANASW
INI MOHANTY
DECLARATION
MANASWINI MOHANTY
PGPM/08-10/12
ACKNOWLEDGEMENT
Firstly, I would like to thank Reliance Money Ltd. for providing me the
opportunity to work on this project.
I would like to thank my corporate guide Mr.Sudhansu Parida and all other staff of
Reliance Money for helping me in learning the lessons of professional
management. His able guidance and valuable inputs have helped me a lot in
successfully completing this project.
I express my sincere gratitude to my institute guide Dr.Sasmita Mishra who took a
lot of personal interest in supervising this project and guiding me. She has been a
great source of inspiration in the task of completion of this project work. Her
profound advice, timely guidance has been of immense value to me.
This acknowledgement would not be completed without extending my thanks to
my friends, who did their summer internship along with me at Reliance Money
Ltd, who helped me clear any doubts that arose during my internship and for
extending their support to me during my period of internship.
Introduction
Whether its retiring early, saving for childrens education,
paying off a loan or to live a secured and satisfied life everyone has
dreams they can achieve by investing their savings. However, the
question that arises is that, should one leave his money tucked away in
the bank or plough it into the stock market where the potential for
higher returns is greater but the chances of losing money is higher?
Deciding where to invest depends on one`s attitude towards risk (one`s
capacity to take risk and one`s tolerance towards risk) and the
investment
horizon
and
non-availability
of
guaranteed-return
awareness of many investors have made them loose lakhs of money in the stock
market. Wise plays by many others have made them earn in crores.
Where the American NASDAQ is in the commanding position,hongkong,Tokyo
etc are some of the asian exchanges being quoted repeatedly when it comes to
news about the share market. SENSEX is not far behind.indian bourses are also
often quoted.
Electronic trading or online trading eliminates the need for physical trading
floors.brokers can trade from their offices,using fully automated screen based
processes. Their workstations are connected to a stock exchanges central computer
via satellite using Very Small Aperture Terminus(VSATs). The orders placed by
brokers reach the exchanges central computer and are matched electronically.
Stock exchange
A
stock
exchange , share
organization which
for the issue redemption, as well as, other financial instruments and
capital
events including the payment of income and dividends . The securities traded on
a stock exchange include: shares issued by companies ,unit trusts and other pooled
investment products and bonds .To be able to trade a security on a certain stock
exchange, it has to be listed . Usually there is a central Location at least for
recordkeeping, but trade is less and less linked to such a physical place, as
modern markets are electronic networks, which gives them advantages of speed
and cost of transactions. Trade on an exchange is by definition done in the
primary market and subsequent trading is done in the secondary market. Supply
and demand in stock markets is driven by various factors which, as in free markets,
affect the price of stocks(see stock valuation).There is usually no compulsion to
issue stock via the stock exchange itself, nor must stock be subsequently traded
on the exchange. Such trading is said to be off exchange or over-the-counter.This
is the
usually way that bonds are traded. Increasingly more and more stock
helps to reduce large income inequalities .Both casual and professional stock
investors through stock price rise and dividends get achance to share in the profits
of promising business that were set up by other people.
Corporate governanceBy having a wide and varied scope of owners , companies generally tend to
improve on their
demands
of
shareholders and
(those companies
where shares are not publicly traded ,often owned by the company founders and /
or their families and heirs , or otherwise by
However , some well-documented cases are known where it is alleged that their
has been considerable slippage in corporate governance on the part of some public
companies .
Creates investment opportunities for small investors
As opposed to their businesses that require huge capital outlay , investing in shares
is open to both the large and small stock investors because a person buys the
number of shares they can afford . Therefore the Stock Exchange provides an extra
source of income to small savers.
Government
COMPANY PROFILE
RELIANCE CAPITAL
Reliance
Reliance
General Insurance
Reliance
Reliance
Reliance
Consumer Finance
Reliance money is a part of the reliance Anil Dhirubhai Ambani Group and is
promoted by Reliance capital, the fastest growing private sector financial services
company in India, ranked amongst the top 3 private sector financial companies in
terms of net worth.
Reliance money is a comprehensive financial solution provider that enables you to
carry out trading and investment activities in a secure, cost-effective and
convenient manner. Through reliance money, you can invest in a wide range of
asset classes from Equity, Equity and commodity Derivatives, Mutual Funds,
insurance products, IPOs to availing services of Money Transfer & Money
changing.
Reliance Money offers the convenience of on-line and offline transactions through
a variety of means, including its Portal, Call & Transact, Transaction Kiosks and at
its network of affiliates.
enterprising , and technology driven organization which will set the highest
standards of service and business ethics.
Equity
Reliance Money offers its clients competitively priced Equity broking, PMS and
Portfolio Advisory Services. Trading execution assistance provided to clients. In
addition Reliance Money provides independent and unbiased view on markets
along with trading strategies and entry / exit points for taking an informed
decision.
Mutual Funds
A mutual fund is a professionally managed fund of collective investments that
collects money from many investors and puts it in stocks, bonds, short-term money
market instruments, and/or other securities.
Reliance Money offers dedicated research & expert advice on Mutual Funds.
Mutual funds are considered to have low risk factors owing to diversification of
assets into various sectors and scripts or instruments within.
A mutual fund is a common pool of money into which investors place their
contributions that are to be invested in acoordance with a stated objective.Then
the ownership of the fund is just joint and mutual; the fund belongs to all
investors.
Insurance
Life-Insurance
Reliance Money assists its clients in choosing a customized plan which will secure
the familys future and their expenses post-retirement. Clients can choose from
different plans of almost all Insurance Companies where they can invest their
money. Clients can choose from products and services that channelise their savings
and protect their needs while guaranteeing security and returns for life. A team of
experts will suggest the best Insurance scheme which suits the clients requirement.
General Insurance
General Insurance is all about protecting against all kind of insurable risks.
Reliance Money assists you in areas of Health insurance, Travel insurance, Home
insurance and Motor insurance.
Commodities
A single platform to trade on both the major commodity exchanges i.e. NCDEX
and MCX. In addition In-house research desk shall provide research reports on all
major commodities which shall enable in getting views for trading and diversify
clients holdings. Trade Execution assistance is also provided to clients.
Tax Planning
With a view to provide complete wealth management solutions, Reliance Moneys
wealthmanagement offerings include tax related services like:
Tax Planning & advisory
Filing Tax returns for individuals
Offshore Investments
Reliance Money provides a unique opportunity to invest in international financial
markets through the online platform which includes different product ranges.
India bulls
Anand Rathi securities
ICICI Securities.
Sharekhan
Kotak Securities
India Infoline
India Infoline Limited is listed on both the leading stock exchanges in India,
viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE)
and is also a member of both the exchanges. It is engaged in the businesses of
Equities broking, Wealth Advisory Services and Portfolio Management Services. It
offers broking services in the Cash and Derivatives segments of the NSE as well as
the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a
depository participant, providing a one-stop solution for clients trading in the
equities market. It has recently launched its Investment banking and Institutional
Broking business.
Fig (4)
Sharekhan Securities:
Sharekhan was created when SSKI Investor Services Pvt. Ltd., a company
in the securities and equities segment decided to harness the power of the Internet
and offer services to its customers through an online stock trading portal.
Sharekhan brings and provides a user-friendly online trading facility. They also
have an extensive all-India ground network of franchisees across the country.
The company offers its services through a combination of online and offline
channels. The online model comprises a portal, chat facilities, and 'speed trade'
terminals. And the offline model uses a combination of an IVR infrastructure and a
team of customer agents to receive orders over the telephone.
(www.sharekhan.com)
ICICI Securities;
ICICI Securities, A subsidiary of ICICI Bank, was set up in February 1993
to provide investment-banking services to investors in India. As on date ICICI
Bank holds 99.9% of the share capital of ICICI Securities.
ICICI Securities Limited is Indias leading full service investment bank with a
dominant position in all segments of its operations
Corporate Finance
Fixed Income and
Equities.
Kotak Securities:
(www.icicisecurities.com)
more than 4,50,000 customers with its wide range of financial services and
products from securities, derivatives trading, depositary services, research &
advisory services, consumer secured & unsecured credit, loan against shares and
mortgage & housing finance. Indiabulls Financial Services Ltd is listed on the
National Stock Exchange, Bombay Stock Exchange.
PRODUCT
Companies
Reliance
ICICI
Direct
Religare
Kotak
Securities
Motilal
Oswal
India
Bulls
Type of
product
Online
Services
Equity
Delivery
Cash
Intraday
Intraday
Cash
Cash
Cash
Cash
Cash
Cash
NSE
BSE
5 times
5 times
upo 20
times
(conditions
applied)
4 times
Margin
Plus
-10 to
12
times
Super
Multiple
-10 times
exposure
in Cash
Margin
Margin with
Stop Loss
order
5 4 to 7
Other
Product
Commodity
IPO
Mutual
Funds
Gold
Forex
Equity
Derivative
PCG
Forex
Commodity
Others
Global
Market
Investment
Online
NRI
Trading
Offline
Service
Specialised
Products
N
N
PMS
Y - Variety
of Option
of
investment Y
Structured
Products
Gold Coin
Wealth
Management
Y - Kotak
ASSIST
Insurance
Mutual
Funds
Loans
Money
Transfer
Money
Exchanger
Investm
ent
Bankin
g,
Private
Equity
Others
PCG,
Institutional
Broking,
Investment
banking
Corporate
Advisory
Group
Reliance
ICICI
Direct
Franchisee
Franchisee
Remissars
Agents
BDE
Sales
Manager
Branch
Branch
Webworld
Bank
Branches
Web
Kiosk
Call Center
Branch
Channel
Partner
Franchisee
Franchisee
Relationship
Manager
Branch
Call Center
Companies
Sources of
Business
Mode of
Trading
Mode of
Customer
Handling
Relationship
Manager
Mapped
Other
Religare
Kotak
Securities
Motilal
Oswal
N
Y
Mode of
Communication Email
Posts
Funds
Reliance
separate
mail ID
Cheque
Banks Linked
ICICI
HDFC
Axis
IDBI
SBI
Others
Cheque
Linking of
multiple Bank
accounts
IndusInd,
Karur
Kotak and
Vysya
Citi
T+1
Fund
Withdrawal
Online Y
Cheque Y
Time T+1
Companies
Retail
Reliance
Kotak Securities
Motilal
Oswal
Web based
R-ACE Pro
(Basic)Activation
Charge Rs299
Fastlane
Direct Link
R-ACE Pro
(Advanced)
Activation charge
- Rs 499
KEAT - Kotak
Securities E
trading access
Terminal.
SpectrumLive
streaming
Quotes
R-ACE Pro
(Professional)
Activation
Charge - Rs 999
KEAT - Premium
(Coustomised to
need)
Y - View
ICICI Direct
Religare
Online
Trading Portal
Equity
Easy Trade
Insta Trade
Fast Trade
Charting
Recognia
Recognia
Send sms
after Trade
Execution
Mobile
Sevices
Chat Services
SMS
TRADING PORTAL
Online
trading
refers
to
buying
and
selling
of
the
DEMAT ACCOUNT
There are many broking houses doing business in India and they
charge a brokerage on every transaction made online or offline.
(Buying and Selling are treated as separate transaction). Reliance
Moneys advantage over others is that its charging the lowest
brokerage in the market which is just 1 paisa on every executive trade
Objective of research;
The main objective of this project is concerned with getting the opinion of
people regarding demat account, Mutual Funds, Life Insurance and other
financial products, to target them and create awareness while with the
generation of leads.
I have tried to explore the general opinion about the products and services
provided by Reliance Money.It also covers why/ why not investors are
availing the services of financial advisors.
Along with it a brief introduction to Indias largest financial intermediary,
RELIANCE MONEY has been given and it is shown that what are demat
a/c, mutual funds and life insurance and how they work.
Sampling:
Sampling
procedure:
The sample is selected in a random way, irrespective of them being investor or not
or availing the services or not. It was collected through mails and personal visits to
the known persons, by formal and informal talks and through filling up the
questionnaire prepared.
Sample
size:
The sample size of my project is limited to 100 only.
Sample
design:
Data has been presented with the help of pie charts.
.
1.
Preference of Investment
Fig.1
Result
of
Preference
of
Investment
Interpretation: This shows that although the mutual funds market is on
the rise yet, the most favored investment continues to be in the Share Market. So,
with a more transparent system, investment in the Stock Market can definitely be
increased.
I
NTERPRETATION: The study shows that most of the people prefer to invest in
stock market because of high risk and high return whereas some other try to
capture the short term gain from investment. But a very few section of people
invest because of the benefits they gain in tax.
Interpretation: Inspite of the huge returns that the share market promises,
we see that there is still a dearth of active traders and investors. This is because of
the non transparent structure of the Indian share market and the skepticism of the
target audience that is generated by the volatility of the stock market. It requires
efficient bureaucratic intervention on the part of the Government.
9.Percentage of earnings invested in Share Trading
structure of the Indian stock market. Hence, effective and efficient steps should be
undertaken to woo the customers to invest more in the lucrative stock market
11.Problems
faced
during
trading
INTERPRETATION: From the above graph I found that most of customer are
mostly risk taker and price conscious and least number of customer are quality
conscious and variety seeker. It suggests that the customer are ready to invest
money in equity and commodity market which is more risky than mutual fund.
14.Suggestions
INTERPRETATION:
Most
of
the
people
who
were
surveyed
are
businessman,10% are students,14% are service holder and rest 16% are exserviceman.
RECOMMENDATION
The most vital problem spotted is of ignorance. Investors should be made aware of
the benefits. Nobody will invest until and unless he is fully convinced. Investors
should be made to realize that ignorance is no longer bliss and what they are losing
by not investing.
After sales services and follow up calls are important for getting new
references so trained telesales should be appointed for this purpose whose sole
work should be to make feedback calls.
Reliance is having too many financial products right from Demat account to
General Insurance and not all the salespeople are familiar with each and every
product so the work force should be segregated each group dealing in a
specific product and the sales target should be given likewise.
While interacting with the investors I found that most of the customers are
unaware about the Mutual fund. Some of the people look upon mutual funds
and equity trading as gambling. Thus a mutual fund awareness program can
help to increase the penetration of mutual funds in the market.
Reliance should declare in black ink that they will charge just 1 paisa per
transaction. People tend to think that there must be some hidden charges.
Rs750 account opening charges are too high when targeting a corporate so the
company should be flexible on this amount.
Reliance should provide periodic training for updating the product knowledge
of various financial advisors.
Company should have a scheme of rewards and recognition to employees and
the field persons to boost their motivation.
There must be proper advertisement of the company by various media like
Exhibition, Press releases, Newspaper, and Television etc.
There should be a good research team who has to survey the market and know
about the clients satisfaction level and also found out the potential customer.
There must be a good infrastructure of the company to get the attention of the
public and the office should be at residential area so that customer get the
service easily.
Though majority of the customer were satisfied with the existing function but
the organization should use some marketing strategies such as discount
scheme on amount of transaction made in a month by the regular customer. So
it will enable the customer to retain in the organization and to attract new
customer.
There should be regular training programme like Workshops, Seminars, and
Meetings etc. for the sake of development of the organization and also for the
development of the employees performance simultaneously.
Limitations:
The project has been subject to the following limitations:
The study was restricted to Reliance Money Limited to only in Cuttack
district.
The study is conducted with the data available and the analysis was made
accordingly.
It was tough to get all relevant facts from the personnel and employees
concerned due to some secret document not provided by the business
organization, which is inherent in an industry.
Time factor was a limitation as only a stipulated period had been ascertained
to me while the personnel had little time to my queries due to their daily
busy schedule.
It is not feasible to compare all the products of various brokerage firm.
Bibliography
Books
Market Research ( Naresh Malhotra)
Marketing Management ( Philip Kotler)
Websites:
o
www.reliancemoney.com
www.nseindia.com
www.bseindia.com
www.moneycontrol.com
www.indiabulls.com
www.investopedia.com
www.scribd.com