INDEX Chapter No Chapter-1 1.1 Introduction 1.2 Need for the study 1.

3 Scope of the study

1.4 Objectives of the study 1.5 Methodology Adopted 1.6 Limitations of the study

page No 1-7

Chapter-2 2.1 About Mutual Funds 2.2 About Reliance Chapter-3 3.1 About consumer perceptions Chapter-4 4.1 Questionnaire 4.2 Data analysis and Interpretation Chapter-5 5.1 Findings 5.2 Suggestions Bibliography

8-53

54-67 68-85

86-88

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Chapter-1 1.1 Introduction 1.2 Need for the study 1.3 Scope of the study
1.4

Objectives of the study Methodology adopted

1.5

1.6 Limitations of the study

1 2

1.1INTRODUCTION

FMP (fixed maturity plans): The stock market goes up and down and there are many investors who prefer to wait out till the storm ends and then re- enter again when everything is smooth. Meanwhile, there is need for a temporary parking place for funds where capital is guaranteed and the return is reasonable. At the same time, there should be ample liquidity, as the money could be needed anytime when there is a buying opportunity. FMPs offered by mutual funds are the apt solution for such a need. FMPs or Fixed Maturity Plan are essentially close-ended income schemes with a fixed maturity date i.e. that runs for a fixed period of time. This period could range from fifteen days to as long as two years or more. For instance, in a fixed deposit, when the period comes to an end, the scheme matures, and your money is paid back to you. Just like an income scheme, FMPs invest in fixed income instruments i.e. bonds, government securities, money market instruments etc. The tenure of these instruments depends on the tenure of the scheme. There is a need for FMPs because the traditional income funds carry a risk known as "interest rate risk". Interest rates and prices of fixed income instruments share an inverse relationship. In other words, when the overall interest rates in the economy rise, the prices of fixed income earning instruments fall and vice versa.

FMPs effectively eliminate this interest rate risk. This is done by employing a specific investment strategy. FMPs invest in instruments that mature at the same time their schemes come to an end. So a 90-day FMP will invest in instruments that mature within 90 days. Holding the underlying instruments up to their maturity effectively eliminates the interest rate risk as there is no buying and selling of the instrument needed. Most Mutual Funds (MF) schemes return your money within 5 days. However, the structure of a FMP does not lend itself to this kind of liquidity. Invest money you are more or less sure you will not need during the tenure of the plan. You can only withdraw the money during pre-set time periods. It is not an open-ended fund that allows you to exit (sell your units) whenever you want. Further, as the scheme opens for subscription, the tenure is declared. So investments may be made for a suitable tenure. If money is urgently needed, most FMPs will charge you a steep exit load. Do check the load structure before investing. The reason for this steep load is to deter investors treating the FMP like a normal income scheme.

Closed-end fund
Closed End Fund (CEF) is a collective investment scheme with a limited number of shares. In the U.S. legally they are called closed-end companies and form one of three SEC recognized types of investment company along with mutual funds and unit investment trusts. Other examples of closed-ended funds are Investment trusts in the UK and Listed investment companies in Australia.

New shares are rarely issued after the fund is launched; shares are not normally redeemable for cash or securities until the fund liquidates. Typically an investor can acquire shares in a closed-end fund by buying shares on a secondary market from a broker, market maker, or other investor as opposed to an open-end fund where all transactions eventually involve the fund company creating new shares on the fly (in exchange for either cash or securities) or redeeming shares (for cash or securities). The price of a share in a closed-end fund is determined partially by the value of the investments in the fund, and partially by the premium (or discount) placed on it by the market. The total value of all the securities in the fund divided by the number of shares in the fund is called the net asset value, often abbreviated Net Asset value (NAV). The market price of a fund share is often higher or lower than the NAV: when the fund's share price is higher than NAV it is said to be selling at a premium; when it is lower, at a discount to the NAV.

1.2 NEED FOR THE STUDY:

A Mutual Fund is a special type of financial service organization. It acts as an investment intermediary. It changeless the savings of a large number of people to the corporate securities in such a way those investors gets steady return, capital appreciation and a low risk. The need for the study is investors who got the specific return with a low risk and also suggest which funds to choose invest his capital. The study provides me an opportunity to helpful to my theoretical knowledge and also practical experience for the investing the capital in to the mutual funds with a low risk and get steady return. And also know the various practical aspects in marketing and finance area.
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1.3 SCOPE OF THE STUDY:

The scope of the project under study by the research in mainly emphasized on the perception level of the customer on the service quality of the Reliance Mutual Fund services. An effort has been made to analyze the quality of service offered by the Reliance Mutual Funds Hyderabad city and to suggest measures for improvement. Project is based on investment pattern in Mutual Funds.

The scope of the study involves the collection of data from the Reliance Mutual Funds investors.

1.4 OBJECTIVES OF THE STUDY: Primary Objective:

The primary objective of the study is to analyse and interpret the perceptions of consumers on the Reliance Mutual Funds.

Secondary objective:
To make more informed investment decision while selecting a specific scheme.

To assess the perception of the customer on services quality of the Reliance Money Limited. To make a detailed study about the funds available in Mutual Funds industry. To study the consumer perception of Reliance Mutual Funds. To give a brief idea about the history of Mutual Funds in India.
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To offer a some useful suggestions at the end based on the study findings.

1.5 METHODOLOGY Adopted:

SOURCES OF DATA a) Secondary data: The secondary data provides information on key variables, which play a major part in the actual research. Sources of Secondary data Companys broachers Web sites Fact sheet The brief lectures from the company executives and the project guide himself b) Professionals c) Others

1.6 LIMITATIONS OF THE STUDY:

The concept of mutual funds is like an ocean, so a detailed study of each and every component of this concept is not possible because of the limited time constraint.

The project was carried out within a short period of two months. The sample was limited to 150 employees only

The project is limited to SIP (Systematic Investment Plan) , DEMAT(Dematerialization Account ) Schemes only

The study is confirmed to Hyderabad city only.

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 The sample was taken very small compared to the vast market. So, it does not reflect the clear picture. Collected information may possess certain bias information, which may not be useful for decision making directly. This study covers mostly on customer and not covered the agents and corporate agents of mutual funds of the time constraint. As the sample size taken is small the findings of the study cannot be generalised for the total universe.

Chapter-2 2.1 About Mutual Funds 2.2 About Reliance

2.1 About Mutual Funds Introduction:

Mutual funds are money-managing institutions set up to professionally invest the money pooled in from the public. These schemes are managed by Asset Management Companies (AMC), which are sponsored by different financial institutions or companies. Each unit of these schemes reflects the share of investor in the respective fund and its appreciation is judged by the Net Asset Value (NAV) of the scheme.

Mutual Funds:
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, debenture and other securities.

Mutual funds industry:

The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the

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growth was slow, but it accelerated from the year 1987 when non-UTI Players entered the market. In the past decade, Indian mutual fund industry had seen dramatic improvements, both quality wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets under Management (AUM) were Rs. 67bn. The private sector entry to the fund family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of 1,540bn. The AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of State bank Of India (SBI) alone, constitute less than 11% of the total deposits held by the Indian banking industry. The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling. The mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under FIRST PHASE 1968: Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and
11

administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management. SECOND-PHASE 1987-1993: Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Canara bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under management. THIRD PHASE 1993-2000: With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805
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crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds Fourth Phase since February 2003: This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores (as on January 2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

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MUTUAL FUNDS STRUCTURE

SEBI (Securities and Exchange Board of India): In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The objectives of SEBI are to protect the interest of investors in securities and to promote the development of and to regulate the securities market. Sponsor: Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. Trustee: The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908. The main
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responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. Asset Management Company (AMC): The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund. The AMC must have a net worth of at least 10 crore at all times. Register and Transfer Agent: The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.

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SCHEMES AND COMPANIES MUTUAL FUNDS SCHEMES: Types of Schemes:

Investment objectives: Schemes can be classified by way of their stated investment objective such as Growth Fund, Balanced Fund, and Income Fund etc. Equity oriented Schemes: These schemes, also commonly called Growth Schemes, seek to invest a majority of their funds in equities and a small portion in money market instruments. Such schemes have the potential to deliver superior returns over the long term. The NAV prices of equity fund fluctuates with market value of the underlying stock which are influenced by external factors such as social, political as well as economic.

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General Purpose: The investment objectives of general-purpose equity schemes do not restrict them to invest in specific industries or sectors. They thus have a diversified portfolio of companies across a large spectrum of industries. While they are exposed to equity price risks, diversified general-purpose equity funds seek to reduce the sector or stock specific risks through diversification. They mainly have market risk exposure. Sector Specific: These schemes restrict their investing to one or more predefined sectors, e.g. technology sector. Since they depend upon the performance of select sectors only, these schemes are inherently more risky than general-purpose schemes. They are suited for informed investors who wish to take a view and risk on the concerned sector. Debt Based Schemes: These schemes, also commonly called Income Schemes, invest in debt securities such as corporate bonds, debentures and government securities. The prices of these schemes tend to be more stable compared

17

with equity schemes and most of the returns to the investors are generated through dividends or steady capital appreciation. These schemes are ideal for conservative investors or those not in a position to take higher equity risks, such as retired individuals. However, as compared to the money market schemes they do have a higher price fluctuation risk and compared to a Gilt fund they have a higher credit risk.

Income schemes: These schemes invest in money markets, bonds and debentures of corporate with medium and long-term maturities. These schemes primarily target current income instead of capital appreciation. They therefore distribute a substantial part of their distributable surplus to the investor by way of dividend distribution. Liquid Income Schemes: Similar to the Income scheme but with a shorter maturity than Income schemes.

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Money Market Schemes: These schemes invest in short term instruments such as commercial paper (CP), certificates of deposit (CD), treasury bills (T-Bill) and overnight money (Call). The schemes are the least volatile of all the types of schemes because of their investments in money market instrument with short-term maturities. These schemes have become popular with institutional investors and high net worth individuals having short-term surplus funds. Gilt Funds: This scheme primarily invests in Government Debt. Hence the investor usually does not have to worry about credit risk since Government Debt is generally credit risk free. Hybrid Schemes: These schemes are commonly known as balanced schemes. These schemes invest in both equities as well as debt. Special Schemes: Index Schemes: The primary purpose of an Index is to serve as a measure of the performance of the market as a whole, or a specific sector of the market. An Index also serves as a relevant benchmark to evaluate the performance of mutual funds. Some investors are interested in investing in the market in general rather than investing in any specific fund. Such investors are happy to receive the returns posted by the markets. Index Funds are launched and managed for such investors.

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Tax Savings Schemes: Investors (individuals and Hindu Undivided Families (HUFs)) are being encouraged to invest in equity markets through Equity Linked Savings Scheme (ELSS) by offering them a tax rebate. Units purchased cannot be assigned / transferred/ pledged / redeemed / switched out until completion of 3 years from the date of allotment of the respective Units. The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Regulations, 1996 and the notifications issued by the Ministry of Finance (Department of Economic Affairs), Government of India regarding ELSS. Subject to such conditions and limitations, as prescribed under Section 88 of the Income-tax Act, 1961, subscriptions to the Units not exceeding Rs.10, 000 would be eligible to a deduction, from income tax, of an amount equal to 20% of the amount subscribed. Constitution: Schemes can be classified as Closed-ended or Open-ended depending upon whether they give the investor the option to redeem at any time (open-ended) or whether the investor has to wait till maturity of the scheme. Open ended Schemes: The units offered by these schemes are available for sale and repurchase on any business day at NAV based prices. Hence, the unit capital of the schemes keeps changing each day. Such schemes thus offer very high liquidity to investors and are becoming increasingly popular in India. Please note that an open-ended fund is NOT obliged to keep
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selling/issuing new units at all times, and may stop issuing further subscription to new investors. Closed Ended Schemes: The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed number of units. These schemes are launched with an initial public offer (IPO) with a stated maturity period after which the units are fully redeemed at NAV linked prices. In the interim, investors can buy or sell units on the stock exchanges where they are listed. Unlike open-ended schemes, the unit capital in closed-ended schemes usually remains unchanged. After an initial closed period, the scheme may offer direct repurchase facility to the investors. Closed-ended schemes are usually more illiquid as compared to open-ended schemes and hence trade at a discount to the NAV. This discount tends towards the NAV closer to the maturity date of the scheme. Interval Schemes: These schemes combine the features of open-ended and closedended schemes. They may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV based prices. Mutual Fund Companies: The concept of mutual funds in India dates back to the year 1963. The era between 1963 and 1987 marked the existence of only one mutual fund Company in India with Rs. 67bn Assets Under Management (AUM).

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The new entries of mutual fund companies in India were SBI Mutual Fund, Canbank Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund. Kothari Pioneer was the first private sector mutual fund company in India which has now merged with Franklin Templeton. Just after ten years with private sector players penetration, the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund companies in India. Major Mutual Fund Companies: The major mutual funds companies are Prudential ICICI Mutual Fund HDFC Mutual Fund State Bank of India Mutual Fund Tata Mutual Fund ICICI Mutual Fund Franklin Templeton India Mutual Fund ADVANTAGES OF MUTUAL FUNDS: Benefits of Mutual funds:

Affordability:
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A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment objective of the scheme. An investor can buy in to a portfolio of equities, which would otherwise be extremely expensive. Each unit holder thus gets an exposure to such portfolios with an investment as modest as Rs.500/-. Diversification: It simply means that you must spread your investment across different securities (stocks, bonds, money market instruments, real estate, fixed deposits etc.) and different sectors (auto, textile, information technology etc.). Professional Management: It is the Fund Manager's job to (a) find the best securities for the fund, given the fund's stated investment objectives; and (b) keep track of investments and changes in market conditions and adjust the mix of the portfolio, as and when required. Variety: Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two ways: first, it offers different types of schemes to investors with different needs and risk appetites; secondly, it offers an opportunity to an investor to invest sums across a variety of schemes, both debt and equity. Tax Benefits: Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit holders. However, as a measure of concession to Unit holders of open-ended equity-oriented funds, income
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distributions for the year ending March 31, 2003, will be taxed at a concessional rate of 10.5%. Regulations: Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds and also prescribe disclosure and accounting requirements. Liquidity: In open-ended mutual funds, you can redeem all or part of your units any time you wish. Convenience: An investor can purchase or sell fund units directly from a fund, through a broker or a financial planner. The investor may opt for a Systematic Investment Plan (SIP) or a Systematic Withdrawal Advantage Plan (SWAP). Flexibility: Mutual Funds offering multiple schemes allow investors to switch easily between various schemes. This flexibility gives the investor a convenient way to change the mix of his portfolio over time. Transparency: Open-ended mutual funds disclose their Net Asset Value (NAV) daily and the entire portfolio monthly. This level of transparency, where the investor himself sees the underlying assets bought with his money, is unmatched by any other financial instrument.
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CORPORATE GOVERNANCE POLICY : Reliance Capital Asset Management Ltd. has a vision of being a leading player in the Mutual Fund business and has achieved significant success and visibility in the market 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 and international investors The vision of their organization is, destiny. The means to realize their full potential. To build a global enterprise for al our stakeholders. A great future for our country. To give millions of young Indians the power to shape their

HR POLICIES: Vision

To build a global enterprise for all our stakeholders, and A great future for our country, To give millions of young Indians the power to shape their destiny, The means to realize their full potential Shareholder Interest People Care

Values

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Consumer Focus Excellence in Execution Team Work Proactive Innovation Leadership by Empowerment Social Responsibility Respect for competition

Human Resources: In Reliance intellectual capital is greater asset than anything else, and priority is given to the growth and retention of the vast pool of talent. At Reliance -the critical role that people play in the success and growth of each of the businesses is recognized. It is the skill and initiative of the workforce that sets the company apart from others in todays knowledgedriven economy. It is the commitment and dedication that lends the competitive edge, and helps in staying ahead of the curve. The companys strong team of professionals is among the youngest in the country and consists of the most dynamic, motivated and qualified individuals. Firstrate management graduates, highly trained engineers, top-notch financial analysts and razor sharp accountants are with company. Mission The transparent HR policies and robust processes are driven by a single overarching objective: To attract, nurture, grow and retain the best leadership talent in every sector and industry the company operates. It offers the following opportunities to its people

Growth opportunities to expand leadership capabilities True meritocracy and freedom to choose career paths

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Opportunities to develop and hone leadership and functional capabilities An entrepreneurial environment where people can pursue their dreams Competitive compensation

It also follow a well-defined Rewards & Recognitions programmed that periodically identifies exceptional individual and team achievers among the various business functions and verticals in the Group.

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2.2 About Reliance

OVERVIEW: Reliance Capital Limited (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 companys 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. KEY ROLES OF RELIANCE CAPITAL: Anil Dhirubhai Ambani-Chairman. Amitabh Jhunjhunwala, Vice-Chairman. Rajendra Chitale, Independent Director. Shri C. P. Jain, Director.

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Anil Ambani, Chairman Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 50, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural Resources and Reliance Power. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. He also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as CoChief Executive Officer, and was centrally involved in every aspect of the company's management over the next 22 years. Amitabh Jhunjhunwala, Vice-Chairman Shri Amitabh Jhunjhunwala, 52, is a Fellow Chartered Accountant. He has vast experience in the areas of financial services and capital markets. Shri Jhunjhunwala was appointed to the Board on March 7, 2003 and was appointed Vice Chairman on March 20, 2006. He is a Director on the Board of Harmony Art Fundation and Reliance Anil Dhirubhai Ambani Group Pvt. Ltd. Rajendra Chitale, Independent Director Shri Rajendra P Chitale, 46, an eminent Chartered Accountant, is the Managing Partner of M/s M. P. Chitale & Associates. He is a Director on boards of the National Securities Clearing Corporation Limited, Asset Reconstruction Company (India) Ltd, Hinduja TMT Limited, HTMT
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Global Solutions Ltd, Ambuja Cement Limited, SME Rating Agency of India Limited, Ishan Real Estate PLC and Reliance General Insurance Company Ltd. He is also a member of the advisory board of the Insurance and Regulatory Authority of India (IRDA). He has also served on the boards of Life Insurance Corporation of India, Unit Trust of India, SBI Capital Markets Ltd., National Stock Exchange of India Ltd. and Small Industries Development Bank of India. Shri C. P. Jain Shri C.P. Jain, 61, is the former Chairman and Managing Director of NTPC Ltd. (National Thermal Power Corporation). Shri Jain has an illustrious career spanning over four decades of contribution in the fields of financial management, general management, strategic management and business leadership. He is a fellow member of the Institute of Chartered Accountants of India with an advanced diploma in Management and is a law graduate. Shri C. P. Jain joined the Board of NTPC in 1993 as Director (Finance), was elevated as Chairman & Managing Director in September 2000 and superannuated in March 2006. He is Chairman of the Global Studies Committee of World Energy Council (WEC), world's largest energy NGO with nearly hundred member-nations. He has been on several important committees of the Government of India, latest being the 'Adhoc Group of Experts on Empowerment of CPSEs'. He was Chairman of Standing Conference of Public Enterprises (SCOPE) between April 2003 and March 2005. He is a Director on the Board of IL & FS Infrastructure Development Corporation and, is also a member of the Audit Advisory Board of the Comptroller and Audit General of India.
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ABOUT THE COMPANY: Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. RCL was incorporated as a public limited company in 1986 and is now listed on the Bombay Stock Exchange and the National Stock Exchange (India). With a net worth of over Rs 3,300 crore and over 165,000 shareholders, Reliance Capital has established its presence as a leading player in the financial services sector in the country. On conversion of outstanding equity instruments, the net worth of the company will increase to about Rs 4,100 crore. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. It is headed by Anil Ambani. Reliance Capital 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, 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 launches retail broking operations12 April 2007

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Reliance Capital has interests in asset management which includes different product line:

Reliance Capital

Reliance Money

Reliance Mutual Fund

Reliance Credit Cards

Reliance Life Insurance

Reliance General Insurance

Reliance Capital has announced its foray into the brokerage business through Reliance Money promoted by Anil Dhirubhai Ambani Group firm Reliance Capital. Reliance Money will offer a fixed flat fee structure and would offer highly competitive rates based on the flat fee structure instead of the contemporary system where investors pay brokerage fees (percentage) for each transaction conducted in the stock markets. Reliance Money would offer the brokerage services across 700 cities including Delhi and Mumbai through 3,000 outlets. Investors would need to pay brokerage at the rate of 0.05 per cent for delivery trades and 0.005 per cent for non-delivery trades (fixed fee of Rs500 for delivery trades up to Rs10 lakh and / or non-delivery trades up to Rs1 crore). Industry rates vary between 0.4 per cent to 0.85 per cent for delivery trades and between 0.05 per cent and 0.10 per cent for nondelivery trades.

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Points of presence Reliance Money has emerged as Indias largest broker and distributor of financial products and services. Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes. Its endeavour is to change the way India transacts in financial markets and avails financial services. Reliance Money has 10,350 outlets in over 5,165 locations with 3.3 million customers, 1 million broking agents generating a daily average turnover of Rs. 15 billion.
PRODUCTS AND SERVICES OF COMPANY:

Reliance Money, the financial services division of the Anil Dhirubahi Ambani group (ADAG) promoted by Reliance Capital. its endeavor is to change the way India transacts in financial markets and avails financial services . Reliance Money is a common plat form for investors to invest in all Equity products, Commodities, Derivatives, Forex, IPOs, Mutual funds, Life Insurance, Offshore investments and credit cards. It is one of the Indias leading and fastest growing private sector financial services and banking companies in terms of net worth. It is a retail brokerage firm, licenses by BSE and NSE. It is a joint package of Trading a/c, Demat a/c where we can buy and sell the shares or hold our shares. It is ties-up with HDFC, UTI and IDBI for the bank account. Reliance Money has unique features of, Third level security for extra safe.

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 No brokerage charges. Online platform. 3-in-1 integrated access (banking, trading and demat account). Also demat account with Reliance Capital with annual fee of just Rs. 50/- only. Currently, Reliance Money along with its 44 own branches has over 1000 franchisees spread across 100 locations in India. (According to Jan-2007) Reliance Money is in the process of introducing the two way authentication to online share trading. Here, customers will be provided with a token (an electronic gadget) that will generate a password, which will be a third level; of security in addition to customer login and password provided. SECURITY TOKEN: Reliance Money provides a dynamic password generating security token. This token produces a new set of 6 digit number every 32 seconds which acts as the 3rd level dynamic password, giving your transaction account that much required extra security. Always remember to carry the security token, as it is an essential for executing any transaction on your account, through any channel.
TRADING:

A stock exchange is an organization that provides a marketplace for either physical or virtual trading shares, bonds and warrants and other financial products where investors (represented by stock brokers) may buy and sell shares of a wide range of companies.

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Trading Kiosk: Reliance Money Brings easy accessibility to online financial transaction through its nationwide network of Trading Kiosks. We can logon to reliancemoney.com at any of our Trading kiosk using customers user ID, password and security token number and transact. Broadband charges at the rate 0.50p per minute will be applicable and adjusted from the account. EQUITY: Weather it is retiring early, saving for your children education or paying off a loan, everyone has dream they can achieve by investing their savings. However, the question that arises is that, should you leave your 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 horizon. However, today, we are faced with a rising cost of living, and non-availability of guaranteedreturn investment products. In such a scenario, investing in equity, which offers returns that are higher than the inflation rate, helps you build wealth and improve your standard of living. The risk involved with investing in equity can be moderated by careful stock selection and close monitoring. What is Equity? Simply put, acquiring equity shares of a company signifies ownership in that company to the extent of shares that you have acquired.

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For instance, if you hold 500 shares of ABC Company, which has totally issued 10 lakh shares, your ownership in ABC Company is 0.05% (500 shares / 10 lakh shares * 100). Why Equity?
Individual Investor: Savings profile

Series1, 10% Series1, 1% Bank FDs Series1, 43% Series1, 28% Small Savings Savings Debentures Cash Series1, 18%

The reality today: FD rates are around 7-7.5% today. Equities gave a return around 17% in the last 25 years, when average GDP was 4-4.5%. Equity may grow at 25-30% riding on strong GDP growth projections of 8-10%. If a difference in growth doubles the final corpus, imagine the difference that investments in equity can make. Investors are afraid to invest in equity for 3 reasons: Downside risk (fear of loss) Risk of market timing (dont want to enter at high levels)

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 No guarantees Returns from Equity: By investing in Equity, you earn returns in two ways:
Capital Appreciation: Over the log-term, with growth of a

companys business. Its share price increases in value. This, in turn, increases the value of your holdings in this company. For instance, lets assume you have purchased 100 shares of Company ABC at Rs 50. If Company ABC reports a good financial performance and has a number of valuable orders on hand for execution, the stock price of Company ABC will raise to reflect this good performance and future potential. If the stock price rises to Rs 75, the value of your holding will become Rs 7500 (100 shares * Rs 75 per share).
Dividend Income: The profits made by a company in a given

financial year are sometimes partly distributed to its shareholders. This pay out is termed as dividend. The quantum of dividend that you are entitled to, will depend on the number of shares that you hold. Lets assume that you hold 1,000 shares of Company ABC and the face value of each share is Rs 10. if company declares a dividend of 50%, it means you are entitled to a dividend of Rs 5 per share ( 50 % of Rs 10). This means you get a dividend of Rs 5,000 (1,000 shares * Rs 5 per share). Equity Vs other Investment avenues: Statistics have proven that in the Indian financial markets, equities have surpassed other traditional forms of investments such as gold and fixed deposits. (see Returns from other investments).

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As per the above graph, equity has been the best performing investment when the holding period is 5 years. For instance, during the period 20002005, whilst equity delivered a return of 17.74 percent annum, bank fixed deposits gave a return of 6.49 percent per annum.

20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%

17.74%

Returns

8.88% 6.49%

10.20% 6.60%

10.91% 10.91% 9.06% 9.06%

12.15% 2000-2005 1995-2005

Bank Deposit

ppf

Kisan vikas patra

Gold 24 carat(per 10)

S&P CNX

Time period

Equity investing a long-term exercise: Equity, as an asset class, provides returns only if the investment horizon is long term (see Returns of NSE Nifty). Over the short term, the market experiences significant upward and downward price movement called volatility, which does not allow you to build wealth over the short term.

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Returns from NSE Nifty

15.00% 10.00% 5.00% Retunns 0.00% -5.00% -10.00% -15.00% -20.00% -14.90% -16.49% Time period 2000 2000-01 2000-02 -6.49% 2000-03 2000-04 2000-05 6.13% 7.02% 11.44%

Risks involved: Though equity is one of the most rewarding investments, it has the inherent risk of capital loss. The kind of risks attached to equity investing is:
o Company- specific risks: Investing in a company which does not

have good business prospects or is owned and run by promoters with a questionable reputation or is in a sector which is currently on a downward trend, will result in capital loss.
o Sector- specific risks: Investing in a fundamentally strong

company at the wrong time i.e. when the sector in which it is a player, is on a downward trend (this is especially in case of commodity sectors such as steel, metal, sugar, cement etc.) will result in a capital loss.
o Global risks: For export-oriented companies, adverse changes in

exchange rates, reduction in import quotas of countries where goods are exported to etc. will reduce business potential leading to fall in stock prices.

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o General market risks: An economic downturn, political upheaval,

a global increase in oil prices, etc. will adversely affect the stock market, leading to fall in prices of stocks. Risk involved in equity investing can be controlled and overcome by continuous monitoring of the global scenario, the economy, the markets and stocks invested in. Risk of possible capital loss also be controlled by using derivatives ( a risk- management financial product). Selecting shares: Investing in equity is not a gambling. It involves indepth study and analysis of the prospective company whose shares you want to buy, the industry it operates in and overall market scenario. This study is called fundamental analysis. Stock selection also involves studying the price movement of the stock over an extended period of time in the past, to judge the trend of the future movement. This study is called technical analysis. Fundamental analysis study can be done by reading and assessing the companys annual reports, research reports published by equity research houses, research analysis published by the media and discussions with the companys management or other experienced investors. Technical analysis study can be done by using software programs, which generate stock price charts indicating upward, downward and sideway movements of the stocks price over the stipulated time period. Timing the buy and sell decision: With high volatility prevailing in the stock market, major price fluctuations in equities are not uncommon. Therefore, apart from ascertaining which stock to buy or sell, it becomes equally important to
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consider when to buy or sell. Through this might seem like a daunting task, it is not unachievable. Assessing when to buy: After you have identified the stock you wish to buy, in order to decide when to buy, you must take into account the Earnings per Share (EPS) and the Price to Earnings (P/E) ratio of the company. EPS is the total earnings or profits made by a company (during a given period of time) calculated on a per share basis. It aims to give an exact evaluation of the returns that the company can deliver. EPS = Net Profit divided by the total number of shares issued by the company. However, for determining how cheap or expensive a particular stock is, EPS must be used in conjunction with the current market price of the share. This is known as the Price to Earnings Ratio (P/E). P/E = Market price of share divided by the EPS. P/E is tool that offers an indication of weather the stock is overpriced, under-priced or adequately valued. However, this method is not fool proof. In certain cases, the P/E ratio does not offer appropriate results. For instance, in case of new company with very good business potential, although the company may be currently loss-making, the stock price will be high, resulting in a high P/E ratio. In this case, although the P/E ratio is high, it would make sense to invest in the stock. It is advisable to use the P/E tool in conjunction with your overall analysis of the stock, its industry and the overall market trend. Rules for equity investing: Dont buy on tips.
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 Buy shares of companies whose business you understand. Undertake thorough research before investing. Hold for the long-term. Do not make a hasty decision. Diversity your portfolio. Do not make a panic sell. Do not borrow money to invest in equity.

Investing process: There are two kinds of companies- one whose shares are listed and traded on the stock exchange and another, whose shares are privately held by the promoters and their friends and associates. You can buy shares of the listed company from the stock exchange (through a broker) or you can apply for shares to the public through its Initial Public Offering (IPO). Buying stocks from the stock exchange is termed as allotment of shares in a companys IPO is called buying in the primary market. Online Trading: We can use the Internet to do your share trading. This is a more convenient medium due to the following reasons: In online trading, the bank account demat account and trading account are seamlessly woven together to ensure a completely paperless mechanism for trading.

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 Through online trading, you can subscribe to IPOs of companies, buy and sell shares in the secondary market and also undertake derivative transactions. This mode of trading is highly secure as it adopts superior levels of security measures, making the trading experience completely safe. Online trading also comes equipped with features such as the provision of company information, stock market news and updates, performance of different sectors, ets. This helps to make wise and planned decisions for buying and selling equities. INITIAL PUBLIC OFFERING (IPO): The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded. RELIANCE MUTUAL FUNDS: Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settler /Sponsor and Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee. RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund effective 11th. Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Ltd (RCL) Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited, the sponsor.

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Reliance Capital Asset Management Limited has appointed M/s. Karvy Computer share Pvt. Limited to act as the Registrar and Transfer Agent to the Schemes of Reliance Mutual Fund The Trustee has appointed Deutsche Bank, AG as the Custodian of the securities that are bought and sold under the Scheme. Reliance Capital Trustee Co. Limited (RCTC), a company incorporated under the Companies Act, 1956, has been appointed as the Trustee to the Fund vide the Trust Deed dated April 25, 1995 executed between the Sponsor and the Trustee. The main objectives of the Trust are:

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 To take such steps as may be necessary from time to time to

reasonable returns on their savings and

realize the effects without any limitation. Reliance Mutual Fund offers investors a well rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Assets Under Management (AUM) of Rs. 59,857 crore (AUM as on 30th June 2007) and an investor base of over 3.4 million. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors

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A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Different funds/ schemes offered by Reliance Mutual Funds: Equity Growth schemes: Equity fund Equity advantage fund Growth fund Vision fund Tax saver fund (ELSS) Equity opportunity fund NRI fund Index fund. Debt / Income schemes: Monthly Income plan Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt Plan Income Fund Medium Term Fund Short Term Fund Liquid Fund Fixed Term Scheme
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 Floating Rate Fund NRI Income Fund Fixed Maturity Fund - Series I Fixed Maturity Fund - Series II Liquidity Fund Regular Savings Fund Sector specific schemes: Banking Fund Diversified Power Sector Fund Parma Fund Media & Entertainment Fund

Organization of Mutual Funds:

Systematic Investment Plans:

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A Systematic Investment Plan is a plan where you invest a fixed amount every where you invest a fixed amount every time at predetermined dates. Just as drops of water make an ocean, small but regular investments can go a long way in building wealth over time. This way you grow step by step. Its always prudent to invest with a long term horizon in mind. Small but regular investments go a long way in creating wealth over time. Reliance Systematic Investment Plan helps to customers to achieve just that. It is an investment technique where you deposit as little as Rs. 100 regularly every month into the mutual fund scheme at the then prevailing NAV (Net Asset Value), subject to applicable load. The biggest advantage is, no nee to time the market and lower cost per unit. Mutual Fund - Reliance Mutual Fund is the largest mutual fund in the country with about Rs 63,000 cr of assets under management in June 07. It is also one of the fastest growing mutual funds in India. CUSTOMER SEGMENTATION: Customer segmentation is one of the most important strategic decision making tools. Segmenting the customers help to effectively cater to the needs and wants. Its is also depend on the category of product service which the customer needs. Generally, most of the business people will go for trading or stock broking. Because they know how to trade and how market prices changing day by day. Some of the people those who are in service sector also go for the trading. They will analyze the market everyday. Here, the company is giving flexible and convenient services to all the customers.

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Now a day, Mutual funds are attracting not only a business people but also the service sector people. In this the systematic plans are attracting towards the middle and lower middle class people. Even the small business people are also interested towards Mutual funds investments. In Life insurance, people are getting tax benefits in business sector/ employees. Now a day, so many people are looking at unit linked plans than traditional plans. Here, all the people are attracting towards the higher returns expecting which is subjected to market risk as like mutual funds. Here, the children plans are also getting benefits at the time of their higher studies/ marriage or some other purpose. For the older people, they are getting pension plans to get money in pension wise. In general insurance, most of the target customers are those who own new / recent motor vehicles. In India, vehicle insurance is compulsory. So, there is a huge market and it increasing day by day. In health wise policies, med claim policy will cover major illness occur/ disease and critical illness etc, A person who is having below 45 years can take this policies without any medical check ups. For these health policies, Reliance is offering 25% lesser price than the other competitors. SWOT ANALYSIS: Strengths: - The most trusted Brand name of Reliance is a great asset for the company

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- Customers loyalty towards the brand they share an emotional attachment with the brand. - Concept of no brokerage charges and introduction of prepaid access system. - First company to introduce advanced technology of third level security (security token) for online trading. - Very simple, easy and fast online stock trading. - Providing all financial services under one roof. - Reliance communications vast reach with 22.5million customers can be used as an initial customer base. - Success stories of Reliance in various diversified sectors in the country. - 25,000 CDMA tech enabled machines for customer convenience to use them as ATMs. - Past track record of revolutionizing the market. - Cost effective, efficient and prompt customer service. - Availability of good financial strength. - The companys goal is not just to build a great enterprise but also to build a great future for our country. - Huge network in various sectors all over the country. - Good financial strengths. - Excellent benefits to the customers in stock broking and health wise policies. Weaknesses: - Late entrant to the market. - Lack of awareness campaigns about the company. - Lack of knowledge about the financial products among people.

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- No brokerage charges creating doubt among people. - Less outlets and less workforce compared to competitors. - Very conservative people they still believe in traditional type of investments. - Company is new to the market, started four months ago only. - Lack of knowledge about the retail brokerage firms. - Lack of awareness about various financial services. - Having less no. of employees for the organization. Opportunities: - Large potential and untapped market. - People are price conscious and cost effectiveness gives a wide opportunity to capture the market.. - Income levels of people are increasing and their investments are also increasing. - To curb inflation the banks lowered interest rates so people are investing more in stock markets and mutual funds to get better returns. - As stock market is doing extraordinarily in the two years people are ready to invest in stock market and mutual funds. - In our country around 600 million people are in age group of 25 years they are young and dynamic and are ready to take more risk in order to get more returns. - Going into wider expansion. - Convenience and easy way of online. - Cheaper prices offerings. Threats: - Competitors reach in the market.
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- Governments investor friendly policy attracting foreign players to enter the market with huge finance at their back. - Due to large potential in the sector other players to entering the market. - Competitors are at par in the present market to challenge any service. - No banking sectors. COMPETITORS: Every organization develops different strategies to survive in market and attack the competitors. They have to compete with his competitors on the price front by offering his product/ services at the same price or at a lower price than that of the competitors. In price competition, who ca sell his products at lowest cost will usually win a large part of the market share. Retail brokerage houses fear that Reliance Money may rewrite the rules of the broking business, distorting business dynamics in the shortterm, the way the Reliance group had done when they forayed into the telecom sector some four years ago. While the company has not formally announces the launch of its operations, many traders said they have been approached by Reliance Money franchisees. The main players in retail brokerage business right now are, ICICI direct Kodak securities India bulls financial services India info line
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 Share Khan & Motile Oswald securities Karvy financial services Geojit financial services. Currently, Average brokerage charges for delivery based traders is anywhere between 15 paisa and 25 paisa for every trade worth Rs. 100/-, while non-delivers trades it is around 3 to 5 paisa. That means it is 0.05% to 0.075%. Reliance Money all set to offer lowest brokerage rates for stock market transactions, offering brokerage charge of 7.4 paisa on every Rs. 100/- worth of delivery based trades, and 2paise on non-delivery trades. But in some cases it is almost free of cost. In Reliance Capital they are charging only Rs 50/- for annual fee. These types of services will definitely affect the competitors strategies in future. MARKET SHARE: COMPANY India bulls Share khan Motilal Oswal India Info line ICICI Direct Kotak Securities Karvy MARKET SHARE (in %) 20 19.5 19 13 10 9 9.5

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Market Share of Retail Brokerage firms

Karvy Kotak 10% Securities 9% ICICI Direct 10% India Infoline 13%

India bulls 19%

Share khan 20% Motilal Oswal 19%

ORGANIZATIONAL STRUCTURE: Anil Dhirubahi Ambani is the chairman of Reliance Capital group. He is one of the foremost corporate leaders of contemporary Indian. He joined Reliance in 1983 as co- chief executive officer and was currently involved in every aspect of companies management over the next 22 years. NAME Anil D Ambani Amitabh Jhunjhunwala Rajendra P Chitale V R Mohan Amit Bapan C P Jain DESIGNATION Chairman Vice Chairman Director Company Secretary Chief Financial Officer Director

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Organization Chart
RELIANCE (ADAG)

RELIANCE SECURITIES

RELIANCE COMMODITIES

RELIANCE CAPITAL

The Organizational structure of Reliance money in sales and distribution channel is:

CHIEF MARKETING OFFICER (CMO)

Zonal Heads

Area Manager/ Regional Manager

Relationship Manager Insurance broking Business Development Executives

Centre Manager

Customer support executive

Relationship Manager Money changing

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Chapter-3 About Consumer Perceptions

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WHAT IS CONSUMER PERCEPTION?

Consumer perception is an important component of an organizations relationship with consumer. Consumers satisfaction is a mental state which results from the consumers comparison of expectations prior to a purchase with performance perception after a purchase. Strong consumer service helps an organization to reach up to consumers expectations.

Consumer perception on service: consumer service is the service

provided in support of a companys core products. Consumer service most often includes answering questions, taking orders, dealing with billing issues, handling complaints, and perhaps scheduling maintenance or repairs. Consumer service can occur on site, or it can occur over the phone or via the internet. Many companies operate consumer service call centers, often staffed around the clock. Typically there is no charge for consumer service. Quality consumer service is essential to building consumer relationships. It should not, however, be confused with the service provided for sale by a company. Services tend to be more intangible then manufactured product. There is a growing market for

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services and increasing dominance of services in economics worldwide. There are generally two types of consumer expectations. The heights can be termed as desired service. The level of service the consumer hopes to receive. The threshold level of acceptable service which the consumers will accept is adequate service. Yet there is hard evidence the consumers perceive lower quality of service overall and are less satisfied. Possible reasons may be:

With more companies offerings tiered service based on the calculated profitability of different market segments, many consumers are in fact getting less service then they have in past.

Increasing use by companies of self-service and technology based service is perceived as less service because no human interaction or human personalization is provided.

Technology based service (automated voice systems, internet based service, technology kiosks) are hard to implement, and there are many failures poorly designed systems in place.

Consumer expectations are higher because of the excellent service they receive from some companies. Thus they expect the same from all and are frequently disappointed.

Organizations have cut costs to the extent that they are too lean and are too understaffed to provide quality service. The intensely competitive job market results in less skilled people working in front line service jobs, talented workers soon get promoted are level for better opportunities.

Many companies give lip service to consumer focus and service quality, but they fail to provide the training, compensation, and support needed to actually deliver quality service.
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 Delivering consistent, high quality service is not easy, yet many companies promise it. The gaps model positions the concepts, strategies, and decisions in services marketing in a manner that begins with the consumer and builds the organizations takes around what is needed to close the gap between consumer expectations and perceptions. The central focus of the gaps model is the consumer gap, the gap difference between consumer expectations and perceptions. Firms needed to close this gap between what consumers expect and receive in order to satisfy their consumers and build long term relationships with them. To close this all important consumer gap, the model suggests that four gaps the provider gaps need to be closed. The following four provider gaps, shown below are the underlying causes behind the consumer gap. 1 Not knowing what consumers expects. 2. Not selecting the right service designs and standards. 3. Not delivering to service standards. 3. Not matching performance to promises.

Objectives
Define perception and its key elements. Identify the various elements in perception Explain the perceptual process Understand and explain subliminal perception

Differentiate between absolute threshold and differential thresh (j.n.d.).

Explain the marketing applications of just noticeable difference

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 Review the concept of subliminal perception and the reality of its use.

Perception
Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. This means we chose what info we pay attention to, organize it and interpret it. Information inputs are the sensations received through sight, taste, hearing, smell and touch. Thus we can say that the above definition of perception of perception lays emphasis on certain features:

Perception is a mental process, whereby an individual selects data or information from the environment, organizes it and then draws significance or meaning from it.

Perception is basically a cognitive or thinking process and individual activities; emotions, feelings etc. are based on his or her perceptions of their surroundings or environment. Perception being an intellectual and cognitive process will be subjective in nature. The key word in the definition of perception is individual. We can say that it is the process by which an individual selects, organizes and interprets information received from the environment

SensationAttending to an object/event with one of five senses OrganisationCategorising by matching sensed stimulus with similar object in memory, e.g. colour InterpretationAttaching meaning to stimulus, making judgements as to value and liking, e.g. bitter taste

One person might perceive a fast-talking salesperson as aggressive and insincere; another, as intelligent and helpful. People can emerge with
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different perceptions of the same object because of three perceptual processes: selective attention, selective distortion and selective retention. Selective Attention: People are exposed to a tremendous amount of daily stimuli: the average person may be exposed to over 1500 ads a day. A person cannot possibly attend to all of these; most stimuli will be screened out. Selective attention means that marketers have to work hard to attract consumers notice. Select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop). Selective Distortion: Even notice stimuli do not always come across in the way the senders intended. Selective distortion is the tendency to twist information into personal meanings and interpret information in a way that will fit our preconceptions. Unfortunately, there is not much that marketers can do about selective distortion. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. Selective retention: People will forget much that they learn but will tend to retain information that supports their attitudes and beliefs. Because of selective retention, we are likely to remember good points mentioned about competing products. Selective retention explains why marketers use drama and repetition in sending messages to their target market. Remember inputs that support beliefs, forgets those that dont. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500

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advertisements per day. Cant be expected to be aware of all these inputs, and certainly will not retain many.

Elements of Perception
Sensation is the immediate and direct response of the sensory organs to stimuli (an advertisement, a package, and a brand name). A stimulus is any unit of input to any of the senses. Sensory receptors are the human organs (i.e., the eyes, ears, nose, mouth, and skin) that receive sensory inputs, sight, sound, smell, taste, or touch. Human sensitivity refers to the experience of sensation. Sensitivity to stimuli varies with the quality of an individuals sensory receptors and the amount or intensity of the stimuli to which he/she is exposed. Sensation itself depends on energy change, the difference of input. Thus, a constant environment, whether very busy and noisy or relatively quiet, would provide little sensation because of the lack of change, the consistent level of stimulation. As sensory input decreases, the ability to detect changes increases. This ability of the human organism to accommodate itself to varying levels of sensitivity as external conditions vary not only protects us from damaging, disruptive, or irrelevant bombardment when the input level is high but has important implications for marketers.

The Absolute Threshold

The lowest level at which an individual can experience a sensation is called the absolute threshold. The point at which a person can detect

61

the difference between something and nothing is that persons absolute threshold for the stimulus. For example, you are going with your friend Ravi on a long drive and you are hungry. When both of you first spot a restaurant, it is said to be your absolute threshold. If both of you spot the restaurant at different times, you are said to have different absolute thresholds. Under conditions of constant stimulation, such as driving through a corridor of hoardings absolute threshold increases (that is, the senses tend to become increasingly dulled). Adaptation refers specifically to getting used to certain sensations, becoming accustomed to a certain level of stimulation. a. Sensory adaptation is a problem that causes many advertisers to change their advertising campaigns regularly. Marketers try to increase sensory input in order to cut through the daily clutter consumers experience in the consumption of advertising. Some increase sensory input in an effort to cut through the advertising clutter. Other advertisers try to attract attention by decreasing sensory input. b. Some advertisers use silences (the absence of music or other audio effects) to generate attention. c. Some marketers seek unusual media in which to place their advertisements in an effort to gain attention. d. Some use scent researchers to enhance their products with a unique smell. Package designers try to determine consumers absolute thresholds to make sure that their new product designs will stand out from competitors packages on retailers shelves. Under conditions of constant stimulation. i.e., when an individual is getting continuous exposure to certain objects or events, then in spite of the absolute threshold increasing, due to the adoption process, the stimuli will cease to make a
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positive impression. It is due to this sensory adoption problem that many television advertisers change their advertising campaigns after some time.

The Differential Threshold

The minimal difference that can be detected between two stimuli is called the difference threshold or the j.n.d. (just noticeable difference). A 19th century German scientist named Ernst Weber discovered that the j.n.d. between two stimuli was not an absolute amount, but an amount relative to the intensity of the first stimulus. Webers law states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different. Also, an additional level of stimulus, equivalent to the j.n.d., must be added for the majority of people to perceive a difference between the resulting stimulus and the initial stimulus. Webers law holds for all senses and almost all levels of Intensity.

Subliminal Perception
People are also stimulated below their level of conscious awareness they can perceive stimuli without being consciously aware of it. The threshold for conscious awareness appears to be higher than the absolute threshold for effective perception. Stimuli below the limen of conscious awareness, too weak or brief to be consciously seen or heard, may be strong enough to be perceived by one or more receptor cells. This is subliminal perception. In the late 1950s there was a stir when consumers were being exposed to subliminal advertising messages they were not aware of receiving. Messages were supposedly persuading people to buy goods
63

and services without their being aware of it. The effectiveness of the concept was tested at a drive-in theater by flashing the words eat popcorn and drink coke on the screen during the movie, so quickly that the audience was not aware of it. In a six-week test, popcorn sales increased 58 percent and coke sales 18 percent. No scientific controls were used, and results were never replicated. To study the effectiveness of subliminal perception, the following key issues are important: There is no evidence that subliminal advertising works! Current research is based on two approaches. a. The first theory is that constant repetition of very weak stimuli will have incremental effects. b. A second approach is based on sexual stimulation through sexual embeds. There is some indication that subliminal advertising may help modify antisocial behavior by calling for generalized behavior change. In summary, we can say that some evidence that subliminal stimuli may influence affective reactions, there is no evidence that subliminal stimulation can influence consumption motives or actions. A recent review of the evidence on subliminal persuasion indicates that the only way for subliminal techniques to have a significant persuasive effect would be through long-term repeated exposure under a limited set of circumstances, which would not be economically feasible or practical within an advertising context.

Nature of perception

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As we see in figure above, there are four major stages in this informationprocessing model, viz., exposure, attention, interpretation and memory. It is the first three, which constitute the perception process. Exposure occurs when a stimulus such as an advertisement comes within range of a persons sensory receptor nerves-vision for example. Target consumer is in proximity of message when delivered e.g. watching Friends when ad aired. Attention occurs when the receptor nerves pass the sensation on to the brain for processing. Target consumer allocates cognitive processing capacity i.e. pays attention to ad. Interpretation is the assignment of meaning to the received sensations. Target consumer interprets the message i.e. message sent = message received Memory is the short-term use of the meaning for the immediate decisionmaking and the longer-term retention of the meaning. Target consumer

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stores the advertisement and message in memory so can be accessed when needed. Process of Perception There is normally a linear flow from exposure to memory.

Perceptual process As we can see in the perceptual process in figure there is a linear flow from exposure to memory. But, these processes occur virtually simultaneously and are clearly interactive. It implies that our memory influences the information we are exposed to, attend to, and the interpretation we assign. At the same time, memory itself is being shaped by the information it is receiving. Much of the interpreted information will not be available to active memory when the individual needs to make a purchase decision. Thus, we see that consumer perception an be approached from three vantage points A. Sensory modalities: The effects of the five senses on the way in which products are perceived. B. Gestalt psychology: Gestalt psychology looks at how consumers perceive information within and as part of the context in which it is
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presented. Gestalt theory is particularly useful in making decisions related to advertising and packaging. C. Consumer interpretation: The perceptual process consists of many sub processes. We can understand this by taking a note of the inputthroughput output approach. This approach is based on the fact that there is an input, which when processed gives outputs. That is, the perceptual inputs will comprise of stimuli in the environment. Perceptual Inputs: The first process in the perceptual process is the presence of stimuli like people, objects, events, information etc. Perceptual mechanism: We will discuss the mechanism of perception in the next lesson. Perceptual outputs: The perceptual outputs will be the behavior or actions of the individuals, i.e., the resultant opinions, feelings attitudes etc. Consumer perceives services in terms of quality of the service and how satisfied they are overall with their experiences. These consumer oriented terms quality and satisfaction have been the focus of attention for executive and researchers alike over the last decade or more. Companies today recognize that they can compete more effectively by distinguishing themselves with respect to service quality and improved consumer satisfaction. Satisfaction is generally viewed a broad concept while service quality assessment focuses specifically on dimensions of service. Based on this view, perceived service quality is a component of consumer satisfaction. Researches have found that consumers consider five dimensions in their assessment of service quality.

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1. Reliability:
Ability to perform the promised service dependably and accurately.

2. Responsiveness:
Willingness to help consumers and provide prompt service

3. Assurance:
Employees knowledge and courtesy and their ability to inspire trust and confidence.

4. Empathy:
Caring individualized attention given to consumers.

5. Tangibles:
Appearance of physical facilities, equipment, personnel, and written materials. These dimensions represent how consumers organize information about service quality in their minds. On the basis of exploratory and quantitative research, these five dimensions were found relevant for long distance telephone service, banking, insurance, appliance repairs and maintenance, securities brokerage. Automobile repair service and others. These serviced qualities lead to satisfaction in customers mind. This study includes the perception of the consumer on all five dimensions, which influence service quality. Service quality is one of the factor which leads to satisfy consumer at its better level. In this we collected the information from respondents to assess the accurate perception of service quality of mutual fund services.

Focus on consumer perception: consumer perception is the

perceiving power of the consumer with the experience of quality service and the level of satisfaction of the consumer with experiences. Companies today recognize that they can compete more effectively by
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distinguishing themselves with respect to service quality and improved consumer satisfaction.

Chapter -4 4.1 Questionnaire

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4.2 Data Analysis & Interpretation

4.1 Questionnaire
PERSONAL DETAILS: NAME: AGE: ADDRESS: PHONE NUMBER: QUALIFICATION: UG / PG / OTHERS OCCUPATION: GOVT.SECTOR / PVT.SECTOR / BUSINESS AGRICULTURE / OTHERS 1. What is your monthly family income? a) Up to 10000 b) 10001-15000 c) 15001-25000 d) 25001-35000 d) Above 35001
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2. What kind of investments you have made so for? a) Saving a/c b) mutual funds a) Liquidity a) Yes b) no 5. If yes, how did you know about mutual funds? a) Advertisement a) Yes b) no c) sbi d) others b) high risk c) low return b) peer group c) financial advisors d) banks 6. Have you ever invested in a mutual fund? 7. If yes, in which mutual fund has invested? a) Reliance b) hdfc 8. If no, what is the reason? a) Not aware of mutual fund d) Not any specific reason 9. If you have invested, in Reliance Mutual funds, why did you do so? a) Brand name of the reliance b) They have a record of giving good returns year after year c) Agent advice 10. If you have not invested in RMF do you have any specific reason? a) You are not aware of RMF b) RMF gives less return compared to the others c) Agent advice 11. When you invest in MF which mode of investment will you prefer? a) One time investment b) SIP 12. When you want to invest which type of funds would you choose? a) Having only debt portfolio b) Having only equity portfolio c) Having debt and equity portfolio
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c) shares d) others

3. While investing your money which factor will you consider? b) low risk c) high return d) trust 4. Are you aware about mutual funds and their operations?

13. By structure in which type of scheme did you invested? a) Open ended schemes c) Interval schemes 14. What is your opinion on RMF overall performance? a) Excellent b) good c) better d) average e) poor c) To compete d) Others 15. In what areas do you want RMF to improve? a) Improve coverage b) Better services Suggestions: 1. 2. Signature b) close ended schemes

TABLE: 1
MONTHLY INCOME OF THE RESPONDENTS INCOME <10000 10001-15000 15001-25000 25001-35000 >35000 CHART: 1 NO. OF RESPONDENTS 34 63 23 18 12 PERCENTAGE 23 42 15 12 8

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INCOME CHART
RESPONDENTS AND PERCENTAGE 70 60 50 40 30 20 10 0 <10000 10001-15000 15001-25000 INCOME NO. OF RESPONDENTS PERCENTAGE 25001-35000 >35000

INTERPETATION: The above table shows that out of 150 respondents. The majority of 42% (i.e.63) respondents are from 10001 to 15000. 23% (i.e. 34) respondents are from < 10000. 15% (i.e. 23) respondents are 15001 to 25000. 12% i.e. 18) respondents are from 25001 to 35000.8% (i.e. 12) respondents are from >35000. TABLE: 2 KIND OF INVESTMENTS YOU HAVE MADE SOFOR KINDS OF INVESTMENTS SAVINGS MUTUAL FUNDS SHARES OTHERS CHART: 2 NO. OF RESPONDENTS 63 23 46 18 PERCENTAGE 42 15 31 12

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MODES OF INVESTMENT CHART

RESPONDENTS AND PERCENTAGE 70 60 50 40 30 20 10 0 SAVINGS MUTUAL FUNDS SHARES OTHERS KINDS OF INVESTMENT NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION:

The majority of 42% (i.e. 63) respondents are from savings account. 31% (i.e. 46) respondents are from shares. 15% (i.e. 23) respondents are from mutual funds. 12% (i.e. 18) respondents are from others.

TABLE: 3 CONSIDERING FACTOR WHEN INVESTMENT IS MADE CONSIEDRATION FACTOR LIQUIDITY LOW RISK HIGH RETURN TRUST NO. OF RESPONDENTS 40 25 60 25 PERCENTAGE 27 17 40 16

CHART: 3

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CONSIDERATION FACTOR CHART

RESPONDENTS AND PERCENTAGE 70 60 50 40 30 20 10 0 LIQUIDITY LOW RISK HIGH RETURN TRUST CONSIDERATION FACTOR NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION: The majority of 40% (i.e. 60) respondents are from high return. 27% (i.e. 40) respondents are from liquidity. 17% (i.e. 25) respondents are from low risk. 16% (i.e. 25) respondents are from trust.

TABLE: 4 AWARE ABOUT MUTUAL FUNDS AND THEIR OPERATIONS AWARENESS YES NO NO. OF RESPONDENTS 113 37 PERCENTAGE 75 25

CHART: 4

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AWARENESS OF MUTUAL FUNDS CHART

RESPONDENTS AND PERCENTAGE 120 100 80 60 40 20 0 YES AWARENESS NO. OF RESPONDENTS PERCENTAGE NO

INTERPRETATION: The majority of 75% (i.e. 113) respondents are from yes. 25% (i.e. 37) respondents are from no.

TABLE: 5 MEDIA OF AWARENESS AVENUES ADVERTISEMENT PEER GROUP FINANCIAL ADVISORS WORD OF MOUTH CHART: 5 NO.OF RESPONDENTS 70 40 30 10 PERCENTAGE 47 27 20 6

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AVENUES OF AWARENESS CHART

80 70 60 50 40 30 20 10 0 ADVERTISEMENT PEER GROUP FINANCIAL ADVISORS WORD OF MOUTH RESPONDENTS AND PERCENTAGE

AVENUES NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION: The majority of 47% (i.e. 70) respondents are from advertisement. 27% (i.e. 40) respondents are from peer group. 20% (i.e. 30) respondents are from financial advisors. 6% (i.e. 10) respondents are from word of mouth.

TABLE: 6 HAVE YOU EVER INVESTED IN MUTUAL FUNDS OPINIONS YES No NO.OF RESPONDENTS 125 25 PERCENTAGE 83 17

CHART: 6

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INVESTMENT CHART
RESPONDENTS AND PERCENTAGE 140 120 100 80 60 40 20 0 YES OPINIONS NO. OF RESPONDENTS PERCENTAGE NO

INTERPRETATION: The majority of 83% (i.e. 125) respondents are from yes. 17% (i.e. 25) respondents are from no.

TABLE: 7 IN WHICH MUTUAL FUND HAVE YOU INVESTED NAME OF THE COMPANY RELIANCE HDFC SBI OTHERS NUMBER OF RESPONDENTS 60 36 45 9 PERCENTAGE 40 24 30 6

CHART: 7
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INVESTMENT IN WHICH MUTUAL FUNDS CHART

RESPONDENTS AND PERCENTAGE 70 60 50 40 30 20 10 0 RELIANCE HDFC SBI OTHERS NAME OF THE COMPANY NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION: The majority of 40% (i.e. 60) respondents are from Reliance. 30 %( i.e 45) respondents are from SBI. 24% (i.e. 36) respondents are from HDFC. 6% (i.e.9) respondents are from others.

TABLE: 8 REASONS FOR NOT INVESTED IN MUTUAL FUNDS REASONS NO AWARENESS HIGH RISK LOW RETURN NO REASON NO.OF RESPONDENTS 20 40 60 30 PERCENTAGE 13 27 40 20

CHART: 8

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REASONS FOR NOT INVESTMENT CHART

RESPONDENTS AND PERCENTAGE 70 60 50 40 30 20 10 0 NO AWARENESS HIGH RISK LOW RETURN NO REASON REASONS NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION: The majority of 40% (i.e. 60) respondents are from low return. 27% (i.e. 40) respondents are from high risk. 20% (i.e. 30) respondents are from no reason. 13% (i.e. 20) respondents are from no awareness.

TABLE: 9 REASONS FOR INVESTED IN RELIENCE MUTUAL FUNDS (RMF) REASONS BRAND NAME THEY HAVE A RECORD OF GIVING GOOD RETURNS YEAR AFTER YEAR AGENT ADVICE 30 20 10 7 NO. OF RESPONDENTS 110 PERCENTAGE 73

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CHART: 9
REASONS FOR INVESTED IN RMF CHART
120 RESPONDENTS AND PERCENTAGE 100 80 60 40 20 0 BRAND NAME GOOD RETURNS REASONS NO. OF RESPONDENTS PERCENTAGE AGENT ADVISE

INTERPRETATION: The majority of 73% (i.e. 110) respondents are from brand name. 20% (i.e. 30) respondents are from agent advice. 7% (i.e.10) respondents are from they have a record of giving good returns year after year. TABLE: 10 REASONS FOR NOT INVESTED IN RMF OPINIONS YOU ARE NOT AWARE OF RMF RMF GIVES LESS RETURN COMPARED TO THE OYHERS AGENT ADVICE NO. OF RESPONDENTS 86 PERCENTAGE 57

46

31

18

12

CHART: 10

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REASONS FOR NOT INVESTED IN RMF CHART

100 RESPONDENTS AND PERCENTAGE 80 60 40 20 0 NO AW ARENESS LESS RETURNS REASONS NO. OF RESPONDENTS PERCENTAGE AGENT ADVICE

INTERPRETATION: The majority of 57% (i.e. 86) respondents are from not aware about RMF. 31% (i.e. 46) respondents are from RMF gives less returns compare to others. 12% (i.e.18) respondents are from agent advice. TABLE: 11 MODE OF INVESTMENT IN MUTUAL FUND OPINIONS ONE TIME INVESTMENT SIP NO.OF RESPONDENTS 125 25 PERCENTAGE 83 17

CHART: 11

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MOD E OF IN VESTMEN T IN MF C HAR T

140 RESPONDENTS AND PERCENTAGE 120 100 80 60 40 20 0 ONE TIM E INV E S E ME NT REAS ONS NO. OF RE S PONDE NTSP ERCE NTAGE S IP

INTERPRETATION: The majority of 83% (i.e. 125) respondents are from one time investment. 17% (i.e. 25) respondents are from systematic investment plan (SIP).

TABLE: 12 WHEN YOU WANT TO INVEST WHICH TYPE OF MUTUAL FUNDS WOULD YOU CHOOSE OPINIONS DEBT PORTFOLIO EQUITY PORTFOLIO BOTH CHART: 12 NO.OF RESPONDENTS 27 30 93 PERCENTAGE 18 20 62

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TYPE OF MUTUAL FUNDS CHART

100 RESPONDENTS AND PERCENTAGE 80 60 40 20 0 DEBT PORTFOLIO EQUITY PORTFOLIO OPINIONS NO. OF RESPONDENTS PERCENTAGE BOTH

INTERPRETATION: The majority of 62% (i.e. 93) respondents are from both equity and debt. 20% (i.e. 30) respondents are from equity. 18% (i.e.27) respondents are from debt portfolio. TABLE: 13 STRUCTURE OF INVESTMENT SCHEMES OPEN ENDED CLOSE ENDED INTERVAL CHART: 13 NO.OF RESPONDENTS 85 45 20 PERCENTAGE 57 30 13

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S T R U C T U R E OF IN V E S T M E N T C H AR T
90 80 70 60 50 40 30 20 10 0 O P E N E NDE D CLO S E E NDE D S CHEM ES NO . O F RE S P O NDE NTS E RCE NTA G E P INTE RV A L

INTERPRETATION: The majority of 57% (i.e. 85) respondents are from open ended. 30% (i.e. 45) respondents are from close ended. 13% (i.e.20) respondents are from interval.

TABLE: 14 OPINION ON PERFORMANCE OF RMF OPINION EXCELLENT GOOD BETTER AVERAGE POOR CHART: 14 NO.OF RESPONDENTS 33 60 31 16 10 PERCENTAGE 22 40 21 11 6

RESPONDENTS AND PERCENTAGE

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O P IN IO N O N P E R F O R M A N C E O F R M F C H A R T
70 60 RESPONDENTS AND PERCENTAGE 50 40 30 20 10 0 E XCE LLE NT GOOD B E TTE R O P INIO N S N O . O F R E S P O ND E NTSE R CE NTA G E P A V E RA G E POOR

INTERPRETATION: The majority of 40% (i.e. 60) respondents are from good. 22% (i.e. 33) respondents are from excellent. 21% (i.e.31) respondents are from better. 11% (i.e. 16) respondents are from average. 6% (i.e. 10) respondents are from poor. TABLE: 15 AREAS TO BE IMPROVED BY RMF OPINIONS IMPROVE COVERAGE BETTER SERVICE COMPETE OTHERS CHART: 15 NO.OF RESPONDENTS 58 42 28 22 PERCENTAGE 39 28 19 14

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AR E A S T O B E IM P R O V E D B Y R M F C H AR T
70 60 50 40 30 20 10 0 IM P R O V E B E TTE R S E R V IC E S C O M P E TE COV E RA GE O P IN IO N S N O . O F R E S P O N D E N TS R C E N TA G E PE O TH E R S

INTERPRETATION: The majority of 39% (i.e. 58) respondents are from improve coverage. 28% (i.e. 42) respondents are from better services . 19% (i.e.28) respondents are from compete. 14% (i.e. 22) respondents are from others.

RESPONDENTS AND PERCENTAGE

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Chapter-5 5.1 findings 5.2 Suggestions

5.1 FINDINGES:
1) In the year (2008-09) total investment in mutual funds is 147862crs 2) In that open-ended funds investment is 18639crs.and close-ended funds is 129223crs.
3) So most of the mutual fund investors are interested in close-ended

funds (maturity plans) 4) In the year 2008-09 no. of close-ended schemes are introduced more than open-ended schemes in mutual fund market in India. . Total no. of schemes is 546. In that 484 schemes are introduced in
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close-ended funds. And 62 schemes are introduced in open-ended funds. 5) While compare to open-ended funds close-ended funds investment is more in growth funds (equity). Total investment in growth fund is 2620500crs.in that close-ended investment is 1492257. And open-ended investment is 11282. 6) While compare to open-ended funds close-ended funds investment is more in income funds (equity) .total dept fund investment is 173211crs.in that open-ended investment is 60405crs and closeended is 112806crs.

5.2 SUGGESTIONS:
The branches of Reliance Mutual Fund services have be improved at some areas. Proper information has to be given to the customers and employees of Reliance Mutual Funds about services to enrich the awareness. The professionalism has to be developed a many the employees through proper training and demonstrations. Suggestions/complaints boxes need to be kept at all Reliance Mutual Funds branches to get the feedback from the customers about service.

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 Proper advertisement need to be given about the special programs Reliance Mutual Funds services the awareness and to root out the public grievances. The company should convince the customer to give preference to SIP only

BIBLIOGRAPHY:
BOOKS AND AUTHRS Marketing Management by Philp Kotlor Principles of Marketing by Philp Kotlor and Amsrong Research Methodology by C.R.Kothari Mutual Funds in India by H.sadhak

WEBSITES:
www.reliancemutualfund.com www.amfiindia.com

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www.nseindia.com www.mutualfundsindia.com www.moneycontrol.com

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