A REPORT

ON

“SALES & MARKETING OF FINANCIAL PRODUCT OF

RELIANCE MONEY”

BY
FIROZ ALAM
ENROLLMENT NO. 08BS0003916
ICFAI BUSINESS SCHOOL, KOCHI, KERALA

1
Contract/Project/Job number…………………….

A REPORT

ON
“SALES & MARKETING OF FINANCIAL PRODUCT OF
RELIANCE MONEY”

SUBMITTED BY: SUBMITTED TO:

FIROZ ALAM COMPANY GUIDE

ENT. NO. 08BS0003916 AMAN AJIT

IBS KOCHI (CLUSTER HEAD)

RELIANCE MONEY

COLLEGE GUIDE

Dr. ANNAPURNA DIXIT

FACULTY

IBS NOIDA

RELIANCE MONEY, KAROL BAGH, NEW DELHI

DATE OF SUBMISSION: 16 T H MAY 2009

2
 Declaration
I hereby declare that this report on “Sales & Marketing of financial products of
reliance Money” has been written and prepared by me during the academic year
2008-2009. This project was done under the guidance and supervision of Dr.
Annapurna Dixit, Faculty, ICFAI Business School and Mr. Aman Ajit, Cluster
Head, Reliance Money, Karol Bagh, New Delhi, in partial fulfillment of the
requirement for the Master of Business Administration, Degree course of the
ICFAI Business School. I also declare that this project is the result of my own
effort and has not been submitted to any other institution for the award of any
Degree or Diploma

Firoz Alam
IBS Kochi
08bs0003916

3
 PREFACE

Private sector is one of the fastest growing sectors in the country. After the
Liberalization the Private industry still holds vast opportunities for young and
experienced professionals. On the life insurance side public sector life insurance
Corporation of India is, of course, the largest player with a history of over 50 years.
After Privatization, the PSU has been making efforts to improve efficiency and
customer services. Among the private life insurance player Reliance life insurance is
the key player. Reliance money - Anil Dhirubhai Ambani Group offers most dynamic
web based trading environment to its customers .The Reliance Money stock trading
websites uses special security features 'Security Token', which makes you online
trading experience more secure without complexity. Reliance ADG provide the vast
opportunities to the new aspirants of the business administration. The financial Sector
is full of competition even if there are a lot of opportunities to the job in Reliance
Money and It is the platform to go on the highest peak in the life of any coming one.
Reliance Money is a single window that provides the multisystem facilities of the
financial Products. There are many companies in the market which are providing the
financial product like insurance, demat account services, mutual funds, general
insurance, Portfolio management services(PMS), wealth management, gold coins,
Money changing , Money Transfer, and the others. Hence Reliance Money provides
many financial products on the single window. Reliance money deals with the product
and Investment options are available in...

 Equity (Stock) Trading

Derivatives Trading Special feature is available first time to track your

positions online, in real time.

 Forex Trading

 Commodity Trading

 IPO's

 Mutual Funds

 Insurance

4
 AKNOWLADGEMENT

Sometimes words fall short to show gratitude, the same happened with
me during this project. The immense help and support received from
Reliance Money Limited overwhelmed me during the project. It is a great
opportunity for me to work with Reliance money, pioneers in the field of
stock trading, a part of Reliance Capital Ltd.

I am extremely grateful to the entire team of Reliance Money at karol

bagh, New Delhi, who have shared their expertise and knowledge with
me and without whom the completion of this project would have been
virtually impossible.

My sincere gratitude to Mr. Aman Ajit (Cluster Head) for providing me

with an opportunity to work with Reliance Money Limited as a company
project guide who has provided me with the necessary information and
his valuable suggestion and comments on bringing out this report in the
best possible way.

I am highly indebted to Mr. Sushant Kumar (Relationship Manager of

Reliance Money) and company project guide, who has provided me the
necessary information and his valuable suggestion and a good support
in understanding the basics of the Reliance Money easily. In this context,
as a student of The ICFAI Business School I would first of all like to
express my thank fullness to Dr. K.Randheer for assigning me such a
worthwhile title (Targeting and Positioning strategies of Financial
Products/Services offered by Reliance Money)to work upon in Reliance
Money .

I am also thankful to other associates (PFA) who had helped me in this

project. I express my sincere gratitude to our Dean P.V Ignatious for
allowing me to carry on this project.

5
 INDEX

S.NO CONTENTS PAGE

NO

1 ABSTRACT 7
2 SCOPE OF THE STUDY 8
3 INTRODUCTION: TARGETING & POSITIONING STRATEGY OF R-MONEY 9-11
4 COMPANY PROFILE, SCOPE OF STUDY, OBJECTIVES, MUTUAL FUND, LIFE 12-42
INSURANCE,
5 MY WORK AT RELIANCE MONEY 43-49
6 LITERATURE REVIEW 50-53
7 RESEARCH AND METHEDO LOGY 54-56
8 DATA ANALYSIS 57-60
9 RESEARCH FINDINGS 61-62
10 SUGGESTIONS AND RECOMMENDATIONS 63
11 QUESTIONNAIRE 64-65
12 BIBLIOGRAPHY, JOURNALS AND OTHER REFERENCES 66

6
 ABSTRACT

This project has been a great learning experience for me; at the same
time it gave me enough scope to implement my analytical ability. This
project as a whole can be divided into two parts:
The first part gives an insight about the mutual funds and its
various aspects. It is purely based on whatever I learned at Reliance
Money. One can have a brief knowledge about Mutual funds and all its
basics through the project. Other than that the real servings come when
one moves ahead. Some of the most interesting questions regarding
mutual funds have been covered. Apart from Mutual Funds a light has
also been through on Life Insurance Policies.

All the topics have been covered in a very systematic way. The language
has been kept simple so that even a layman could understand. All the
datas have been well analyzed with the help of charts and graphs.

The second part consists of data and their analysis, collected

through a survey done on 200 people. It covers the topic” Awareness
and Impact level among people about Mutual Funds and Life Insurance
Policies”. The data collected has been well organized and presented.
Hope the research findings and conclusions will be of use. It has also
covered why people don’t want to go in invest? The advisors can take
further steps to approach more and more people and indulge them for
taking their advices.

7
 SCOPE OF THE STUDY

The scope of the study refers to the job that to know about the
activities of the organization. The study means that the analysis of the
products of the company on which he/she has to focus.

During the MSP days the volunteer need to find out the corporate
strategies of the running company and the mile stone which the
company has covered during its journey.

In the summer training, it is necessary for the student that he /she

involve with the experience guys to get the knowledge about the
company. That is how the company has got the success, Or if it is going
in the loss, why.

During this MSP period I have found that the reliance group is the
biggest group in Indian companies. I felt that I can learn the more in the
Reliance Money and Reliance Mutual Fund.

Reliance Money and Reliance Mutual fund is the part of the Reliance
Capital Limited which is a growing company in the financial products.
Reliance Anil Dhirubhai Ambani group is also deals in communication,
energy, natural resources, media, and entertainment, healthcare and
infrastructure.

8
 INTRODUCTION

TARGETING DONE BY RELIANCE MONEY

Reliance Money is Targeting on :-

 Small Cities (tier 2, tier 3 cities) though it already has a great recognition
tier-1 cities and metros.

 It is the only wing of Reliance Capital which targets on NRIs, Foreign

collaborations and have branches in foreign countries like Singapore, Malaysia
and US.

 The company is also focusing to leverage as it is also franchises to target

various differential markets and its customers. The company is expanding its
branch network and also, more importantly, its franchisee network. Reliance
Money has over 10,000 outlets now, of which 500-600 are owned by the company.

 Moreover the company is very much focused on doing business at Retail

level as the collaboration of R-Money with STIC travel group is a live example of it.

 Last but not the least the company is offering financial products and
services which are very required by the common people so its target population is
differential SEC (SPECIAL ECONOMIC CLASSES) on the basis of various
Demographics, Income groups, Occupation, etc.

9
 POSITIONING DONE BY RELIANCE MONEY

Positioning is the next step after Targeting. Here for this purpose Reliance Money
has done various activities (like as some of which are done in their promotional
activities) some of which are;

 It is the brand name of the company RELIANCE which is India’s biggest

company. Here when it comes the time of choosing financial products/services and
moreover when a person compares with other companies definitely his one of the
preferences/choice is Reliance Products/Services.

 The company has positioned itself as the Retail Outlet or a Financial

Supermarket where all the needs of a person in terms of taking a financial
Product/Service is fulfilled as it offers the differential financial products/services of
various companies. Ex. Mutual Fund and Insurance Policies of ICICI, FRANKLIN
TEMPLETON, SBI, HDFC, KARVY, TATA AIG, etc.

 It regularly conducts Seminars, Events (even participates in events) to

provide knowledge of its offered products/services and to have a direct face to
face contact with the people. This really helps the company to improve its services
given to the customer and moreover to improve and modify the products/services
to fulfill the demand and wants of the customers and to offer a totally customized
products/services.

 It also pays attention of promotion i.e. it does unique promotion and

advertisement which draws the attention of the public anyhow and there

it shows that “Yes we are something Different “and this is also perceived and
positioned in the minds of the consumer.

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 AN EXAMPLE:

A bundle of hundred rupee notes, a huge chain with a sizeable padlock and a few
words were quite enough for the ADAG led Reliance Mutual Funds to unlock its
ideas before its target group. A large safe kept at suburban railways stations in
Mumbai grabbed just the right eyeballs and pamphlets educating the consumer
added to the impact of the campaign.
The outdoor campaign that was launched in Mumbai adopted a disruptive
method to communicate its message to investors. Hoardings sporting bundles of
hundred rupee notes that were chained and locked were set up at important
locations such as Mahim, Bandra Kurla Complex and Worli.
The tagline read: ‘Unlock your money’s potential’. It was a clear call to investors
who store their money in fixed deposit schemes and other less productive
options.An extensive and expansive outdoor campaign was conducted by Reliance
with this latest strategy. The campaign included ground level activities at crowded
public places and micro marketing. The creative idea is a collaborative brain child
of Reliance and 141 Sercon. Vikrant Gugnani, president, Reliance Mutual Funds,
says, “We wanted to create awareness among the investing populace.” By way of
brief, Reliance told the agency that it wanted a disruptive way of targeting
investors.
The disruption is in the form of standing out starkly and being noticed as a
better option to just banking. Gugnani continues, “The objective was to bring to
people’s attention that instead of money lying idle in the bank, one could invest it
wisely in mutual funds.” The on-ground campaign had a large safe deposit box,
which ran the same positioning line as the hoarding. The safe deposit box was
strategically placed at crowded places such as railway stations, bus stops and car
parks.
Road shows and a moving billboard were also part of the campaign.
Pamphlets were distributed at the venues to educate prospective investors about
Reliance’s various systematic investment plans. The campaign has been carried
out only in Mumbai as of now. Plans to launch it in other metros such as Delhi,
Bangalore and Kolkata have been voiced. Smaller cities such as Chandigarh,
Vadodara, Nasik and Guwahati are also on the list. There are also other
campaigns in the offing, which will be released soon. So from the above example it
is clear that the company always do something unique to attract people.
11
 COMPANY PROFILE

RELIANCE ADA GROUP

12
About Reliance Money in brief
Reliance money is a part of the reliance Anil Dhirubhai Ambani
Group and is promoted by Reliance capital, the fastest growing private
sector financial services company in India, ranked amongst the top 3
private sector financial companies in terms of net worth.

Reliance money is a comprehensive financial solution provider that

enables you to carry out trading and investment activities in a secure,
cost-effective and convenient manner.

Through reliance money, you can invest in a wide range of asset

classes from Equity, Equity and commodity Derivatives, Mutual Funds,
insurance products, IPO’s to availing services of Money Transfer &
Money changing.

Reliance Money offers the convenience of on-line and offline

transactions through a variety of means, including its Portal, Call &
Transact, Transaction Kiosks and at it’s network of affiliates. Some

key steps of the company that are as…..

“ Success is a journey, not a destination .” If we look for examples to prove this

quote then we can find many but there is none like that of Reliance Money. The
company which is today known as the largest financial service provider of India.

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 Success sutras of Reliance Money:

The success story of the company is driven by 9 success sutras adopted by it

namely Trust, Integrity, Dedication, Commitment, Enterprise,
Hard work, Home work, Team work play, Learning and
Innovation, Empathy and Humility and last but not the least it’s
the Network . These are the values that bind success with Reliance Money .

 Vision of Reliance Money

To achieve & sustain market leadership, Reliance Money shall aim for complete
customer satisfaction, by combining its human and technological resources, to
provide world class quality services. In the process Reliance Money shall strive to
meet and exceed customer's satisfaction and set industry standards.

 Mission statement:

“ Our mission is to be a leading and preferred service provider

to our customers, and we aim to achieve this leadership
position by building an innovative, enterprising , and
technology driven organization which will set the highest
standards of service and business ethics.”

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 PARTNERS OF COMPANY

 KHUSHALI BAZAAR

 WORLD GOLD COUNCIL

 DTDC

 WEBAROO

 VASCO

 CMC LIMITED

 STIC TRAVEL GROUP

 BARISTA

 MCDONALDS

 STICK TRAVEL GROUP

 THE MUTHOOT GROUP

 VALCAMBI SA

 REUTORS

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  WINCOR NIXDOF

Equity Reliance Money offers its clients competitively priced

Equity broking, PMS and Portfolio Advisory Services. Trading
execution assistance provided to clients. In addition Reliance
Money provides independent and unbiased view on markets along
with trading strategies and entry / exit points for taking an
informed decision.

Mutual Funds A mutual fund is a professionally managed fund

of collective investments that collects money from many investors
and puts it in stocks, bonds, short-term money market
instruments, and/or other securities. Reliance Money offers
dedicated research & expert advice on Mutual Funds. Mutual
funds are considered to have low risk factors owing to
diversification of assets into various sectors and scripts or
instruments within.

Insurance
Life-Insurance Reliance Money assists its clients in choosing a
customized plan which will secure the family’s future and their
expenses post-retirement. Clients can choose from different plans
of almost all Insurance Companies where they can invest their
money. Clients can choose from products and services that
channelise their savings and protect their needs while
guaranteeing security and returns for life. A team of experts will
16
suggest the best Insurance scheme which suits the client’s
requirement.

General Insurance General Insurance is all about protecting

against all kind of insurable risks. Reliance Money assists you in
areas of Health insurance, Travel insurance, Home insurance and
Motor insurance.

Commodities A single platform to trade on both the major

commodity exchanges i.e. NCDEX and MCX. In addition In-house
research desk shall provide research reports on all major
commodities which shall enable in getting views for trading and
diversify client’s holdings. Trade Execution assistance is also
provided to clients.

Structured Products, Art Investments Structured

Products is a new class of financial products for investors
apprehensive of increased volatility in stock markets. Specially
designed products could include Equity, Index-linked in nature,
Real Estate Funds, Art Funds, Overseas Investments and
Infrastructure Investments.

Tax Planning With a view to provide complete wealth

management solutions, Reliance Money’s wealth management
offerings include tax related services like: Tax Planning & advisory
Filing Tax returns for individuals

17
Real Estate Advisory Services Broking Model for
lease/rent and buy/sell of property Property Valuation Real-
estate Consulting – Corporate earnings model, Lease rentals, etc.
Offshore Investments Reliance Money provides a unique
opportunity to invest in international financial markets through
the online platform which includes different product ranges.
MUTUAL FUNDS – AN UNDERSTANDING

Like most developed and developing countries the mutual fund

cult has been catching on in India. There are various reasons for
this. Mutual funds make it easy and less costly for investors to
satisfy their need for capital growth, income and/or income
preservation. And in addition to this a mutual fund brings the
benefits of diversification and money management to the
individual investor, providing an opportunity for financial success
that was once available only to a select few.

Understanding Mutual funds is easy as it's such a simple

concept: a mutual fund is a company that pools the money of
many investors -- its shareholders -- to invest in a variety of
different securities.
Investments may be in stocks, bonds, money market
securities or some combination of these. Those securities are
professionally managed on behalf of the shareholders, and each
investor holds a pro rata share of the portfolio -- entitled to any
profits when the securities are sold, but subject to any losses in
value as well.
For the individual investor, mutual funds provide the benefit
of having someone else manage your investments and diversify
18
your money over many different securities that may not be
available or affordable to you otherwise. Today, minimum
investment requirements on many funds are low enough that even
the smallest investor can get started in mutual funds. A mutual
fund, by its very nature, is diversified -- its assets are invested in
many different securities. Beyond that, there are many different
types of mutual funds with different objectives and levels of
growth potential, furthering your chances to diversify.
The Concept of Mutual Fund
A mutual fund is a common pool of money into which investors
place their contributions that are to be invested in accordance
with a stated objective. The ownership of the fund is thus
‘joint’ and ‘mutual’; the fund belongs to all investors.

Mutual Funds Industry in India

The origin of mutual fund industry in India is with the
introduction of the concept of mutual fund by UTI in the year
1963.
Though the growth was slow, but it accelerated from the
year 1987 when non-UTI players entered the industry. In the
past decade, Indian mutual fund industry had seen a dramatic
improvement, both quality wise as well as quantity wise.
Before, the monopoly of the market had seen an ending
phase, the Assets Under Management (AUM) was Rs. 67bn. The
private sector entry to the fund family raised the AUM to Rs.
470 bn in March 1993 and till April 2004; it reached the height
of 1,540 bn.

19
 Putting the AUM of the Indian Mutual Funds Industry into
comparison, the total of it is less than the deposits of SBI alone,
constitute less than 11% of the total deposits held by the
Indian banking industry. The main reason of its poor growth is
that the mutual fund industry in India is new in the country.
Large sections of Indian investors are yet to be intellectuated
with the concept.
Hence, it is the prime responsibility of all mutual fund
companies, to market the product correctly abreast of selling.
The mutual fund industry can be broadly put into four phases
according to the development of the sector. Each phase is
briefly described as under.

First Phase - 1964-87 Unit Trust of India (UTI) was established on

1963 by an Act of Parliament. It was set up by the Reserve Bank of
India and functioned under the Regulatory and administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI
and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme
launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6,700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds) Entry of

non-UTI mutual funds. SBI Mutual Fund was the first followed by Can
bank Mutual Fund(Dec 87), Punjab National Bank Mutual Fund (Aug
89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank
of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in 1990. The end
of 1993 marked Rs.47, 004 as assets under management.

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Third Phase - 1993-2003 (Entry of Private Sector Funds) With the
entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of
fund families. Also, 1993 was the year in which the first Mutual Fund
Regulations came into being, under which all mutual funds, except UTI
were to be registered and governed. The erstwhile Kothari Pioneer
(now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund)
Regulations were substituted by a more comprehensive and revised
Mutual Fund Regulations in 1996. The industry now functions under
the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund
houses went on increasing, with many foreign mutual funds setting up
funds in India and also the industry has witnessed several mergers and
acquisitions. As at the endof January 2003, there were 33 mutual
funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India
with Rs.44, 541 crores of assets under management was way ahead of
other mutual funds.

Fourth Phase - since February 2003 This phase had bitter

experience for UTI. It was bifurcated into two separate entities. One is
the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,
835 crores (as on January 2003). The Specified Undertaking of Unit
Trust of India, functioning under an administrator and under the rules
framed by Government of India and does not come under the purview
of the Mutual Fund Regulations. The second is the UTI Mutual Fund
Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and
functions under the Mutual Fund Regulations. With the bifurcation of
the erstwhile UTI which had in March 2000 more than Rs.76, 000
crores of AUM and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent
mergers taking place among different private sector funds, the mutual
fund industry has entered its current phase of consolidation and
21
growth. As at the end of September, 2004, there were 29 funds, which
manage assets of Rs.153108 crores under 421 schemes.

GROWTH IN ASSETS UNDER MANAGEMENT

Note: Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified
Undertaking of the Unit Trust of India effective from February 2003. The
Assets under management of the Specified Undertaking of the Unit Trust of
22
India has therefore been excluded from the total assets of the industry as a
whole from February 2003 onwards.

Mutual Fund Companies in India

The concept of mutual funds in India dates back to the year 1963. The era
between 1963 and 1987 marked the existance of only one mutual fund
company in India with Rs. 67bn assets under management (AUM), by the
end of its monopoly era, the Unit Trust of India (UTI). By the end of the 80s
decade, few other mutual fund companies in India took their position in
mutual fund market. 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.

The succeeding decade showed a new horizon in Indian mutual

fund industry. By the end of 1993, the total AUM of the industry
was Rs. 470.04 bn. The private sector funds started penetrating
the fund families. In the same year the first Mutual Fund
Regulations came into existence with re-registering all mutual
funds except UTI. The regulations were further given a revised
shape in 1996. 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 in India ABN AMRO

Mutual Fund ABN AMRO Mutual Fund was setup on April 15,
2004 with ABN AMRO Trustee (India) Pvt. Ltd. as the Trustee
Company. The AMC, ABN AMRO Asset Management (India) Ltd.
23
was incorporated on November 4, 2003. Deutsche Bank A G is the
custodian of ABN AMRO Mutual Fund.

Birla Sun Life Mutual Fund Birla Sun Life Mutual Fund is the
joint venture of Aditya Birla Group and Sun Life Financial. Sun
Life Financial is a global organization evolved in 1871 and is
being represented in Canada, the US, the Philippines, Japan,
Indonesia and Bermuda apart from India. Birla Sun Life Mutual
Fund follows a conservative long-term approach to investment.
Recently it crossed AUM of Rs. 10,000 crores.

Bank of Baroda Mutual Fund (BOB Mutual Fund) Bank of

Baroda Mutual Fund or BOB Mutual Fund was setup on October
30, 1992 under the sponsorship of Bank of Baroda. BOB Asset
Management Company Limited is the AMC of BOB

Mutual Fund and was incorporated on November 5, 1992. Deutsche

Bank AG is the custodian.

HDFC Mutual Fund

HDFC Mutual Fund was setup on June 30, 2000 with two sponsorers
namely Housing Development Finance Corporation Limited and
Standard Life Investments Limited.

HSBC Mutual Fund

HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities
and Capital Markets (India) Private Limited as the sponsor. Board of
Trustees, HSBC Mutual Fund acts as the Trustee Company of HSBC
Mutual Fund.

24
ING Vysya Mutual Fund
ING Vysya Mutual Fund was setup on February 11, 1999 with the same
named Trustee Company. It is a joint venture of Vysya and ING. The
AMC, ING Investment Management (India) Pvt. Ltd. was incorporated
on April 6, 1998.

Prudential ICICI Mutual Fund

The mutual fund of ICICI is a joint venture with Prudential Plc. of
America, one of the largest life insurance companies in the US of A.
Prudential ICICI Mutual Fund was setup on 13th of October, 1993 with
two sponsorers, Prudential Plc. and ICICI Ltd. The Trustee Company
formed is Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI
Asset Management Company Limited
Incorporated on 22nd of June, 1993.

Sahara Mutual Fund

Sahara Mutual Fund was set up on July 18, 1996 with Sahara India
Financial Corporation Ltd. as the sponsor. Sahara Asset Management
Company Private Limited incorporated on August 31, 1995 works as
the AMC of Sahara Mutual Fund. The paid-up capital of the AMC
stands at Rs 25.8 crore.

State Bank of India Mutual Fund

State Bank of India Mutual Fund is the first Bank sponsored Mutual
Fund to launch offshor fund, the India Magnum Fund with a corpus of
Rs. 225 cr. approximately. Today it is the largest Bank sponsored
Mutual Fund in India. They have already launched 35 Schemes out of
which 15 have already yielded handsome returns to investors. State
Bank of India Mutual Fund has more than Rs. 5,500 Crores as AUM.
Now it has an investor base of over 8 Lakhs spread over 18 schemes.

Tata Mutual Fund

25
Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882.
The sponsorers for Tata Mutual Fund are Tata Sons Ltd., and Tata
Investment Corporation Ltd. The investment manager is Tata Asset
Management Limited and its Tata Trustee Company Pvt. Limited. Tata
Asset Management Limited's is one of the fastest in the country with
more than Rs. 7,703 crores (as on April 30, 2005) of AUM.

Kotak Mahindra Mutual Fund

Kotak Mahindra Asset Management Company (KMAMC) is a
subsidiary of KMBL. It is presently having more than 1, 99,818
investors in its various schemes. KMAMC started its operations in
December 1998. Kotak Mahindra Mutual Fund offers schemes catering
to investors with varying risk - return profiles. It was the first
company to launch dedicated gilt scheme investing only in
government securities.

Unit Trust of India Mutual Fund

UTI Asset Management Company Private Limited, established in Jan
14, 2003, manages the UTI Mutual Fund with the support of UTI
Trustee Company Private Limited. UTI Asset Management Company
presently manages a corpus of over Rs.20000 Crore. The sponsorers of
UTI Mutual Fund are Bank of Baroda (BOB), Punjab National Bank
(PNB), State Bank of India (SBI), and Life Insurance Corporation of
India (LIC). The schemes of UTI Mutual Fund are Liquid Funds, Income
Funds, Asset Management Funds, Index Funds, Equity Funds and
Balance Funds.

Standard Chartered Mutual Fund Standard Chartered Mutual Fund

was set up on March 13, 2000 sponsored by Standard Chartered Bank.
The Trustee is Standard Chartered Trustee Company Pvt. Ltd.
Standard Chartered Asset Management Company Pvt. Ltd. is the AMC
which was incorporated with SEBI on December 20,1999.
26
Franklin Templeton India Mutual Fund The group, Franklin
Templeton Investments is a California (USA) based company with a
global AUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the
largest financial services groups in the world. Investors can buy or sell
the Mutual Fund through their financial advisor or through mail or
through their website. They have Open end Diversified Equity schemes,
Open end Sector Equity schemes, Open end Hybrid schemes, Open end
Tax Saving schemes, Open end Income and Liquid schemes, Closed end
Income schemes and Open end Fund of Funds schemes to offer.

Morgan Stanley Mutual Fund India Morgan Stanley is a worldwide

financial services company and it’s leading in the market in securities,
investment management and credit services. Morgan Stanley
Investment Management (MISM) was established in the year 1975. It
provides customized asset management services and products to
governments, corporations, pension funds and non-profit
organizations. Its services are also extended to high net worth
individuals and retail investors. In India it is known as Morgan Stanley
Investment Management Private Limited (MSIM India) and its AMC is
Morgan Stanley Mutual Fund (MSMF). This is the first close end
diversified equity scheme serving the needs of

1995 works as the AMC of Sahara Mutual Fund. The paid-up capital of
the AMC stands at Rs 25.8 crore.

Escorts Mutual Fund

Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance
Limited as its sponsor. The Trustee Company is Escorts Investment
Trust Limited. It’s AMC was incorporated on December 1, 1995 with
the name Escorts Asset Management Limited.

27
Alliance Capital Mutual Fund
Alliance Capital Mutual Fund was setup on December 30, 1994 with
Alliance Capital Management Corp. of Delaware (USA) as sponsored.
The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the Alliance
Capital Asset Management India (Pvt) Ltd. with the corporate office in
Mumbai.

Benchmark Mutual Fund

Benchmark Mutual Fund was setup on June 12, 2001 with Niche
Financial Services Pvt. Ltd. as the sponsored and Benchmark Trustee
Company Pvt. Ltd. as the Trustee Company. Incorporated on October
16, 2000 and headquartered in Mumbai, Benchmark Asset
Management Company Pvt. Ltd. is the AMC.

Canbank Mutual Fund

Canbank Mutual Fund was setup on December 19, 1987 with Canara
Bank acting as the sponsor. Canbank Investment Management
Services Ltd. incorporated on March 2, 1993 is the AMC. The
Corporate Office of the AMC is in Mumbai.

Chola Mutual Fund

Chola Mutual Fund under the sponsorship of Cholamandalam
Investment & Finance Company Ltd. was setup on January 3, 1997.
Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is
Cholamandalam AMC Limited.

LIC Mutual Fund

Life Insurance Corporation of India set up LIC Mutual Fund on 19th
June 1989. It contributed Rs. 2 Crores towards the corpus of the Fund.
LIC Mutual Fund was constituted as a Trust in accordance with the
28
provisions of the Indian Trust Act, 1882. . The Company started its
business on 29th April 1994. The Trustees of LIC Mutual Fund have
appointed Jeevan Bima Sahayog Asset Management Company Ltd as
the Investment Managers for LIC Mutual Fund.

GIC Mutual Fund

GIC Mutual Fund, sponsored by General Insurance Corporation of
India (GIC), a Government of India undertaking and the four Public
Sector General Insurance Companies , viz. National Insurance Co. Ltd
(NIC), The New India Assurance Co. Ltd. (NIA), The Oriental Insurance
Co. Ltd (OIC) and United India Insurance Co. Ltd. (UII) and is
constituted as a Trust in accordance with the provisions of the Indian
Trusts Act, 1882.

Future of Mutual Funds in India

By December 2004, Indian mutual fund industry reached Rs 1, 50,537
crore. It is estimated that by 2010 March-end, the total assets of all
scheduled commercial banks should be Rs 40, 90,000 crore. The
annual composite rate of growth is expected 13.4% during the rest of
the decade. In the last 5 years we have seen annual growth rate of 9%.
According to the current growth rate, by year 2010, mutual fund
assets will be double.

Some facts for the growth of mutual funds in India

 100% growth in the last 6 years.

29
 Number of foreign AMC’s is in the queue to enter the Indian
markets like Fidelity Investments, US based, with over US$1trillion
assets under management worldwide.

 Our saving rate is over 23%, highest in the world. Only

channelizing these savings in mutual funds sector is required

 We have approximately 29 mutual funds which is much less than

US having more than 800. There is a big scope for expansion.

 'B' and 'C' class cities are growing rapidly. Today most of the
mutual funds are concentrating on the 'A' class cities. Soon they will
find scope in the growing cities.

 Mutual fund can penetrate rural like the Indian insurance

industry with simple and limited products.

 SEBI allowing the MF's to launch commodity mutual funds.

 Emphasis on better corporate governance.

 Trying to curb the late trading practices.

 Introduction of Financial Planners who can provide need based

advice.

CATAGORIES OF MUTUAL FUNDS

30
31
WHY INVEST IN MUTUAL FUNDS

Investing in mutual has various benefits, which makes it an ideal

investment avenue. Following are some of the primary benefits:

Professional investment management

One of the primary benefits of mutual funds is that an investor has
access to professional management. A good investment manager is
certainly worth the fees you will pay. Good mutual fund managers
with an excellent research team can do a better job of monitoring the
companies they have chosen to invest in than you can, unless you have
time to spend on researching the companies you select for your
portfolio. That is because Mutual funds hire full-time, high-level
investment professionals. Funds can afford to do so as they manage
large pools of money. The managers have real-time access to crucial
market information and are able to execute trades on the largest and
most cost-effective scale. When you buy a mutual fund, the primary
asset you are buying is the manager, who will be controlling which
assets are chosen to meet the funds' stated investment objectives.

Reliance Mutual Fund

Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai
Ambani Group, is India's leading Mutual Fund, with average Assets
under Management of Rs. 90,813 crores for the month of June 2008,
and an investor base of over 6.7 million. Reliance Mutual Fund offers
investors a well rounded portfolio of products to meet varying investor
requirements. Reliance Mutual Fund has a presence in 300 cities
across the country and constantly endeavors to launch innovative
products and customer service initiatives to increase value to
investors. Reliance Mutual Fund schemes are managed by Reliance

32
Capital Asset Management Ltd., a wholly owned subsidiary of Reliance
Capital Ltd.

Types of Reliance Mutual Funds

1. Reliance Growth Fund

2. Reliance Vision Fund
3. Reliance Banking Fund
4. Reliance Diversified Power Sector Fund
33
 5. Reliance Pharma Fund
6. Reliance Media & Entertainment Fund
7. Reliance NRI Equity Fund
8. Reliance Equity opportunities Fund
9. Reliance Index Fund
10. Reliance Tax Saver (ELSS) Fund
11. Reliance Equity Fund
12. Reliance Long Term Equity Fund
13. Reliance Regular Saving Fund

There are two types of investment in Mutual Funds.

Lump Sum
Systematic Investment Plan(SIP)

Lump sum: In Lump sum the investment is only one

times that

is of Rs. 5,000. and if the investment is monthly then the

investment will be 6,000/-.

Systematic Investment Plan(SIP) :

34
We have already mentioned about SIPs in brief in the previous
pages but now going into details, we will see how the power of
compounding could benefit us. In such case, every small
amounts invested regularly can grow substantially. SIP gives a
clear picture of how an early and regular investment can help
the investor in wealth creation. Due to its unlimited
advantages SIP could beRedefined as “a methodology of fund
investing regularly to benefit regularly from the stock market
volatility. In the later sections we will see how returns
generated from some of the SIPs have outperformed their
benchmark. But before moving on to that lets have a look at some of the
top performing SIPs and their return for 1 year:

Scheme Amount NAV NAV Date Total

Amount
Reliance diversified 1000 62.74 30/5/2008 14524.07
power sector retail
Reliance regular 1000 22.208 30/5/2008 13584.944
savings equity
principal global 1000 18.86 30/5/2008 14247.728
opportunities fund
DWS investment 1000 35.31 30/5/2008 13791.157
opportunities fund
BOB growth fund 1000 42.14 30/5/2008 13769.152
In the above chart, we can see how if we start investing Rs.1000 per month
then what return we’ll get for the total investment of Rs. 12000. There is
reliance diversified power sector retail giving the maximum returns of Rs.
2524.07 per year which comes to 21% roughly. Next we can see if anybody
35
would have undertaken the SIP in Principal would have got returns of app.
18%. We can see reliance regular savings equity, DWS investment
opportunities and BOB growth fund giving returns of 13.20%, 14.92%, and
14.74% respectively which is greater than any other monthly investment
options. Thus we can easily make out how SIP is beneficial for us. Its hassle
free, it forces the investors to save and get them into the habit of saving.
Also paying a small amount of Rs. 1000 is easy and convenient for them,
thus putting no pressure on their pockets. Now we will analyze some of the
equity fund SIP s of Birla Sunlife with BSE 200 and bank fixed deposits In a
tabular format as well as graphical.
Working of a Mutual Fund

Advantages of Mutual Funds

 Diversification: The best mutual funds design their portfolios so
individual investments will react differently to the same economic conditions.
For example, economic conditions like a rise in interest rates may cause certain
securities in a diversified portfolio to decrease in value. Other securities in the
portfolio will respond to the same economic conditions by increasing in value.
36
When a portfolio is balanced in this way, the value of the overall portfolio should
gradually increase over time, even if some securities lose value.
 Professional Management: Most mutual funds pay topflight
professionals to manage their investments. These managers decide what
securities the fund will buy and sell.
Regulatory oversight: Mutual funds are subject to many government
regulations that protect investors from fraud.
 Liquidity: It's easy to get your money out of a mutual fund. Write a
check, make a call, and you've got the cash.
Convenience: You can usually buy mutual fund shares by mail,
phone, or over the Internet. Low cost: Mutual fund expenses are often
no more than 1.5 percent of your investment. Expenses for Index Funds
are less than that, because index funds are not actively managed.
Instead, they automatically buy stock in companies that are listed on a
specific index.
Transparency
Flexibility
Choice of schemes
Tax benefits
Well regulated

Drawbacks of Mutual Funds Mutual funds have their drawbacks and

may not be for everyone:
No Guarantees: No investment is risk free. If the entire stock
market declines in value, the value of mutual fund shares will go down
as well, no matter how balanced the portfolio. Investors encounter
fewer risks when they invest in mutual funds than when they buy and
sell stocks on their own. However, anyone who invests through a
mutual fund runs the risk of losing money.

Fees and commissions: All funds charge administrative fees to

cover their day-to-day expenses. Some funds also charge sales
commissions or "loads" to compensate brokers, financial consultants,
37
or financial planners. Even if you don't use a broker or other financial
adviser, you will pay a sales commission if you buy shares in a Load
Fund.

Taxes: During a typical year, most actively managed mutual

funds sell anywhere from 20 to 70 percent of the securities in their
portfolios. If your fund makes a profit on its sales, you will pay taxes on
the income you receive, even if you reinvest the money you made.

38
Basics of Life Insurance

What is Life Insurance? An amount of money paid to someone

(called beneficiary) when the Life Assured (in whose name the
insurance policy is taken) dies. This amount can be used to pay the
expenses related to Life assureds death or can be invested to
generate income that will replace your salary. Life Insurance is an
important tool in any investors portfolio & can be used for - wealth
creation, asset building, provide for contingencies and retirement
planning.

The main reason to buy Life Insurance is to provide

income replacement for your loved ones

Types of Life Insurance Policies

 Most Insurance policies are a combination of Savings &

Protection.

Products are formulated by either increasing or decreasing

either one of these components.

These combinations can be broadly divided into 4 groups

- ULIPs
- Term Insurance
- Endowment Policies : Whole Life; Unit Linked etc

Annuities & Pension.

39
Products of Life Insurance
Life Insurance products are usually referred to as ‘plans’ of
insurance. These plans have two basic elements; one is the “Death
Cover” providing for the benefits being paid on the death of the
insured person within a specified period.

The other is the “Survival Benefit” providing for the benefit being
paid on survival of a specified period.
Plans of insurance that provide only death cover are called
“Term Assurance” Plans.
 Plans of insurance that provide only survival benefits are
called “Pure Endowment” Plans

Term Life Insurance

Term Life Insurance provides protection for a specified period of
time. A death benefit is paid to the beneficiary if the insured dies
within a specified period of time while the policy is still in force.

Whole Life Insurance

Whole Life insurance is a permanent life insurance and provides
protection for life. As long as premiums are paid, a death benefit is
paid to the beneficiary.

ULIPs A ULIP is a life insurance which provides a combination of

Life Insurance protection and investment. Money can be invested in
the following fund:- Equity Fund, Debt Fund, Money Market Fund
(Liquid Fund) and Balance Fund.

Annuities Annuities are practically the same as pension.

Pension provides periodical payments to the employees, who
have retired. They are paid as long as the recipient is alive.
Annuities are called the “reverse” of Life Insurance.
40
VARIOUS INSURANCE PLANS OFFERED BY RELIANCE MONEY (i.e. of
RELIANCE LIFE INSURANCE)

Protection Plans

Protects family even when you’re not around by investing in

Reliance Protection Plans. Choose a limited period plan or a lifetime
protection plan depending on your needs. The latest Protection
Plans are as below…
1. Reliance Term plan
2. Reliance Simple Term plan
3. Reliance Special Term plan
4. Reliance Credit Guardian plan
5. Reliance Special Credit Guardian plan
6. Reliance Endowment plan
7. Reliance Special Endowment plan
8. Reliance Connect 2 Life plan
9. Reliance Whole Life plan
10. Reliance Wealth + Health plan
11. Reliance Cash Flow plan

Savings & Investment Plans

Reliance Savings & Investment Plans help you to set aside some
money to achieve specific goals in life, which means that you can
enjoy life and provide for your family’s daily needs. The savings and
investment Plans are as below…
1. Reliance Total Investment Plan Series I - Insurance
2. Reliance Wealth + Health plan
3. Reliance Automatic Investment plan
4. Reliance Money Guarantee plan
5. Reliance Cash Flow plan
6. Reliance Market Return plan
41
 7. Reliance Endowment plan
8. Reliance Special Endowment plan
9. Reliance Whole Life plan
10. Reliance Golden Years Plan
11. Reliance Golden Years Plan Value
12. Reliance Golden Years Plan Plus
13. Reliance Connect 2 Life plan

Retirement Plans
Invest today in Reliance Retirement Plans and save money to enjoy
life even after retirement. You will never have to depend on another
person or make any compromises to maintain your current lifestyle.
The latest Retirement Plans are as below…
1. Reliance Total Investment Plan Series II – Pension
2. Reliance Golden Years Plan
3. Reliance Golden Years Plan Value
4. Reliance Golden Years Plan Plus
5. Reliance Wealth + Health plan
6. Reliance Automatic Investment Plan
7. Reliance Money Guarantee Plan

Child Plans

Save systematically and secure your child’s future needs by

investing in Reliance Child Plans. You can always be there for your
child when he or she needs you. The Childs plans are as below…
1. Reliance Child plan
2. Reliance Secure Child plan
3. Reliance Wealth + Health plan

42
Market Return Plan
Under This plan the investment risk in the investment
portfolio is borne by the policyholder.

key features
Twin benefit of market linked return and insurance
protection
A unit linked plan, different from traditional life
insurance products with maximum maturity age of 80 years.
Option to create your own portfolio depending on
your risk appetite.
Choose from four different investment funds
Flexibility to switch between funds
Option to pay regular as well as single premium &
top- ups
Option to package your policy with accidental rider
Flexibility to increase the sum assured and liquidity
to with draw money partially.

WHO CAN BUT THE PRODUCT

Minimum age at entry 30 years
Maximum age at entry 65 years
Maximum age at maturity 80 years

WHAT IS THE POLICY TERM

Minimum policy term 5 years
Maximum policy term 40 years

43
MY WORK AT RELIANCE MONEY

During the MSP period of 3 month i.e. from 23th FEB to 23th MAYr I
have gone through various stages Job role. I was basically given the
work to Target various Consumer Groups, Markets and Different
Organizations to whom and where the company can pitch its
differential financial products/services as well as to create Awareness
about the company and its offerings in the regard to Promote which
create a Position in minds of the consumer. Moreover I was given
some training classes about Mutual funds and Life Insurance.

I have worked for two financial product/service offered by R-Money

which are
MUTUAL FUND
LIFE INSURANCE (I AM JUST IN THE INITIAL STAGE OF IT).

As Targeting and Positioning are always followed by Segmentation,

so I firstly took criteria of segmentation for targeting and positioning
purpose on various aspects some of which are;

SEC (SPECIAL ECONOMIC CLASS) -- Different working

classes like:

1. Service Class : Top Level Personals (i.e. at Strategic Level)

Middle Level Personals (i.e. at Tactical Level) Lower Level Personals

(i.e. at Operational Level)
2. Business Class: Entrepreneurs (Small Businessmen and
some small firms

Basically)

44
 3. Self Employed

On the basis of Demographics:

1. Age Factor:I segmented people as per 3 age criteria
which are , (25—35)years
(35—45) years, (45—60) years
2. Education Level
3. Gender: Male and Female
4. Income:According to the earnings and income of the
product.

According to the parameters taken above I have targeted people in

various places of Hyderabad like, Banjara Hills, Begum pet,
Balanagar, Punjagutta , Somajiguda, Erramanzil, Himayat Nagar,
Ameerpet, Yellariguda for creating awareness and position of Mutual
Funds and Life Insuarances offered by R-Money. Moreover this
process also lead to the work of Lead Generation for the company
and which could also be used by me for cross selling of the
products/services to them.

45
Given below are some facts and comparison of Mutual Funds with other
investment is mentioned which is done by me.

MUTUAL FUND VS/S OTHERS

Return Safety Volatility Liquidity Convenience

Equity High Low High High Moderate

Bonds Moderate High Moderate Moderate High

Co. Debentures Moderate Moderate Moderate Low Low

Co. FDs Moderate Low Low Low Moderate

Bank Deposits Low High Low High High

PPF Moderate High Low Moderate High

Life Insurance Low High Low Low Moderate

Gold Moderate High Moderate Moderate Gold

Real Estate High Moderate High Low Low

Mutual Funds High High Moderate High High

INSTRUMENT RETURN SAFETY VOLATILITY LIQUIDITY

Equity High Low High High/low
Bonds Moderate High Moderate Moderate
Debenture Moderate Moderate Moderate Low
Bank Deposits Low High Low High
Mutual funds High High Moderate High

46
Mutual fund is the preferred avenue for investment because:

Mutual fund combines the advantage of each of products.

They dispense the short coming of the other avenues
The returns get adjusted to the market movements.
The post tax returns are higher as compared to the other avenues.
Investment can be averaged out.
Minimizing the risk element.

METHODOLOGY
AGE STATUS INSURANCE NEEDS SUGGESTED
PRODUCTS
18yrs - Unmarried 1.Go on a holiday 2.Buy a new Short Term
25yrs Car 3.Set up a new house 4.Set Endowment Product
up Interiors 5.Buy jewellery

25yrs - Married 1.High Debt, high expenditure Temporary term or

30yrs Phase 2.Family dependency on whole life Product
your income 3.Low
accumulated wealth 4.Need for
Planning Requirement

30yrs - Matured 1.Retirement Planning Profits or Unit Linked

45yrs couple 2.Wealth transfer or saving
vehicles 3.Returns on
investment 4.Opting for
guaranteed Product
60yrs Post 1.Protection in case you live
and Retirement long 2.Protection for spouse in
above case of death 3.Wealth
accumulation for children
Endowment/ Deferred
annuities
1.Single Premium
annuities 2.Long term
care products 3.Whole
life products

47
 LITRATURE REVIEW

Journal of Research into New Media Convergence:

The International Technologies This very journal is basically an
interview which is done by Patrick Crogan to Samuel Weber.

The title is Targeting, Television and Networking: An Interview

with Samuel Weber.
Here a light is thrown on various aspects by the interviewee on the
targeting, media and networking.

According to him;
The ‘target’ is someone who doesn’t fit the usual criteria. So one don’t
have the same kind of search procedures as in the normal hiring process.
The target of opportunity can be a function of affirmative action policy
or be somebody whose qualifications are unusual enough that one
would not find them with a regular search process following criteria
peculiar to an individual discipline.

On the one hand the association of targeting with the aim of controlling
the future, controlling the environment by identifying a target,
localizing it and hitting it or reaching it, depending on what area a
person is in, and on the other hand the notion of opportunity, which
suggests the unpredictable emergence of an event that can’t be entirely
planned. The coupling of the two terms suggests that targeting, rather
than just designating an abstract activity in which, unencumbered by
constraints of time and space, he identify something that he/she wants
to accomplish or goals to be reach and then everything is done to
achieve that, involves responding in a very determinate situation
spatially and temporally to an unpredicted, unforeseen event, trying to
get that event in some sense under control.
The word ‘opportunity’ itself is interesting because it already condenses
this idea of the unpredictable, singular event being turned into an
occasion to do something else. An opportunity means precisely to be able
to do something with the event. Quite literally, the word suggests a
portal, op-port-unity; a gateway through which one can pass into
another domain. The latter can be construed as a realm of goals, and
48
then the opportunity is instrumentalized, like the target. But it can
also suggest an area that may not be definable strictly or primarily
in terms of goals, aims or ends. In the latter case, you can’t be
absolutely sure that you are going to be able to reach your target or
even that there is one. So you have this tension between the two
terms, target and opportunity.

In the financial domain as well, where the maximization of profit in

the short term takes precedence over all other considerations and
has come to undermine the very foundations of the capitalist
economy that produced it in the first place. The current financial
crisis deriving from the use of ‘subprime mortgages’ is an excellent
example of this tendency.
Targeting in this sense seeks to eliminate the uncertainties of time
by considering it primarily as ‘short term’ and thus as amenable to
the accomplishment of certain goals, the maximization of profit
primarily, without worrying about what comes next. One reaction
to this is the growth of ecological concerns, about ‘sustainable’
growth, but these are then quickly exploited by the very same
system dominated by finance capital and short-term profit
maximization.

Overall, the journal speaks about concept of targeting and

opportunities in common. Though the real methodology is not been
specified to do targeting but the concepts it has Discussed are really
helpful for one who wants to do a project on targeting.

49
Culture & Psychology

JOURNAL OF Positioning in Accounting for Redemption and

Reconciliation The journal speaks out the combination of culture and
psychology in the regard of Positioning, i.e.; how these both play a vital
role while understanding the concept of positioning. The author has tried
to clear the concept of positioning through Accounting for Redemption
and Reconcialition.

The Social Practice of Reconciliation Reconciliation is a ubiquitous

social phenomenon, woven into the fabric of social lives, and is
emblematic of the human condition. It ranges from inter-personal
relationships observed in everyday life to a wider social context of
business, economics, politics, government, international relations and
diplomacy.

The Concept of Positioning The concept of positioning is introduced as a

metaphor to enable an investigator to grasp how persons are ‘located’
within conversations as observably and subjectively coherent participants
in jointly produced storylines. The act of positioning refers to the
assignment of ‘parts’ or ‘roles’ to speakers in the discursive construction
of personal stories. Here positioning theory to the analysis has been
applied in order to understand the nature of the experience of
reconciliation—what it is to remember the problematic past and what it is
to be reconciled with it.

Harré and Van Langehove note that there are three ways of expressing
and experiencing one’s personal identity or unique selfhood (Harré & van
Langenhove, 1991; van Langenhove & Harré, 1993). They are by stressing
one’s agency in claiming responsibility for some action; by indexing one’s
statements with the point of view one has on their relevant world; or by
presenting a description/evaluation of some past event or episode as a
contribution to one’s biography. I will show in the following analysis of an
extract how such indexing and marking of one’s agency are empirically
observed in the redemption narrative.
50
Furthermore, Harré and van Langenhove state that the positioning
has larger theoretical implications for the moral sensibility of a
person in taking a particular position in a given conversational
setting. Positioning is a metaphor for oscillating subjectivity located
in time and place/space.
The utterance is indexed with his or her spatial and temporal
location, and as a claim about a state of affairs it is indexed with its
speaker’s moral standing (Harré & van Langenhove, 1991, 1999).
Such indexing allows us to look at the ways in which a speaker takes
responsibility for the reliability of his or her claim.
A discourse produced in the interview is not treated as the single
account representing the truth. The discursive act of positioning thus
involves a reconstructive element: the biographies of the one being
positioned and the ‘positions’ may be subject to rhetorical
redescriptions (van Langenhove & Harré, 1993).
The question, then, is to examine how this ‘rewriting’ is understood
with regard to personal identity and selfhood (van Langenhove &
Harré, 1993, p. 85). As in recent work exemplified in critical and
discursive psychology, positioning does not assume a stable, fixed
identity or individual state of mind, but is situated in discursive
practices.
Positioning indeed strikes a chord with this view of multiple, unfixed,
fleeing and dynamic identity. Yet, van Langenhove and Harré identify
that ‘*t+here seems to be a tension between the multiplicity of selves
as expressed in discursive practices and the fact that across these
discursive practices a relatively stable self-hood exists as well’.

Overall all the concepts dealing with the understanding of positioning

has been systematically and beautifully analyzed that even a layman
could gain the knowledge. Hence, this article is indeed a perfect help
material for a project.

51
RESEARCH METHEDOLOGY

Objective of research;

The main objective of this project is concerned with

getting the opinion of people regarding Mutual Funds and Life
Insurance , to target them and create awareness while with the
generation of leads.
I have tried to explore the general opinion about
Mutual Funds and Life Insurance. It also covers why/ why not
investors are availing the services of financial advisors.
Along with it a brief introduction to India’s largest
financial intermediary, RELIANCE MONEY has been given and it
is shown that what are mutual funds and life insurance and
how they work

Scope of the study:

The research was carried on in the Southern Region of India. It
is restricted to Hyderabad. I have visited people randomly
nearby my locality, different shopping malls, small retailers etc.

Data sources:
Research is totally based on primary data. Secondary data can
be used only for the reference. Research has been done by
primary data collection, and primary data has been collected by
interacting with various people. The secondary data has been
collected through various journals and websites and some
special publications of R-MONEY.

52
Sampling:

Sampling procedure:

The sample is selected in a random way, irrespective of them being investor or not or
availing the services or not. It was collected through mails and personal visits to the
known persons, by formal and informal talks and through filling up the questionnaire
prepared. The data has been analyzed by using the measures of central tendencies like
Mean, median, mode. The group has been selected and the analysis has been done on the
basis statistical tools available.

Sample size:

The sample size of my project is limited to 200 only. Out of which only 135 people
attempted all the questions. Other 65 not investing in MFs and don’t have a Life Insurance
policy attempted only 2 questions.

Sample design:

Data has been presented with the help of bar graph, pie charts, line graphs etc.

Hypothesis:

H0: Targeting and Positioning Strategy based on investment in Mutual Fund and Life
Insurances is significant.

Limitation:
Time limitation.
Research has been done only at DELHI
Some of the persons were not so responsive.
Possibility of error in data collection.
Possibility of error in analysis of data due to small sample size.

Data Analysis
1. Null Hypothesis: The opinion of customers for all positioning factors is Similar.
Alternative Hypothesis: The opinion of customers for all positioning Factors is not
similar.
2. Statistical Test: One way ANOVA Alpha level: .05 Confidence value: 2.71 Test
value: 4.37 Result: The test results show that, the opinion of customers for all
positioning factors is similar and can be considered to be true representative of the
population.

53
2. Have you ever invested/ interested to invest in mutual funds or
have taken a life insurance policy?

YES 135
NO 65

54
 3. What is the most important reason for not investing in mutual
funds or taking a life insurance policy? (Only for above 65
participants)

Lack of knowledge about mutual funds/do not like insurance 25

policy?
Enjoys investing in other options 10
Its benefits are not enough to drive you for investment 18
No trust over the fund managers and the company 12

55
 4. Where do you find yourself as a mutual fund investor or an
insurance policy owner?

Totally ignorant 28
Partial knowledge of MFs 37
Aware of only scheme in which invested 46
Good knowledge of MFs 24

56
 5. Where from you purchases mutual funds and take insurance
policies?

Directly from the AMCs and Insurance companies 33

Brokers only ( large intermediaries) 28
Broker/ sub-brokers 59
Other sources 15

57
 6. Which feature of the mutual funds allure you most?

Diversification 42
Professional management 29
Reduction in risk and transaction cost 34
Helps in achieving long term goal 30

58
 7. According to you which are the most suitable stage to invest in
mutual funds or take an Insurance policy?

Young unmarried stage 55

Young Married with children stage 32
Married with older children stage 21
Pre retirement stage 27

59
Research findings and conclusions:

As the test result shows that there is significant difference

among the opinion of the customers regarding the positioning
factors, the following conclusions will elaborate the positioning
factors which are given more preference by consumers.

At the survey conducted upon 200 people, 135 (67.5%) are
already mutual fund investors/an insurance policy owner or are
interested to invest in future or take an insurance policy and the
remaining 65 are not interested in doing either of it. So there is
enough scope for the company to target those 65 participants
(32.5%) to convert them into investors through their convincing
power and great communication skills.

Now, when those 65 people were asked about the reason

of not investing in mutual funds or taking an Insurance policy, then
most of the people held their ignorance responsible for that. They
lacked knowledge and information about the mutual funds and were
confused due to various Insurance policies available in the market.
Whereas just 10 people enjoyed investing in other option. For 18
people, the benefits arousing from these investments were not
enough to drive them for investment in MFs and Insurance and 12
people expressed no trust over the fund managers’ decision and the
company. Again the financial advisors of the company can tap upon
these people by educating them about mutual funds and create trust
regarding the investment in an Insurance policy.

Out of the 135 persons who already have invested in mutual

funds/or taken an Insurance policy are interested to invest, only 18%
have sound knowledge of MFs and various Insurance policies, 34%
people are aware of only the schemes in which they

60
have invested. 27% possess partial knowledge whereas 21% stands
nowhere in knowledge about MFs and as far as the Insurance polices
are concerned they are still confused.
33 participants buy forms directly from the AMCs, 28 from
brokers only, 55 from brokers and sub-brokers even then 15 people
buy from other sources. The brokers and sub brokers have the
maximum reach so they should try to make those investors aware f
the happenings, even the AMCs should follow it.

When asked about the most alluring feature of MFs, most

of them opted for diversification, followed by reduction in risk, helps
in achieving long term goals and helps in achieving long term goals
respectively.

Most of the investor preferred to invest at a young

unmarried stage. Even 32 persons were ready to invest at a stage of
young married with children but person with older children avoid
investing due to increased expenses. But again the number rose to 27
at pre-retirement stage.

61
Recommendations & Suggestions

The most vital problem spotted is of ignorance. Investors should be

made aware of the benefits. Nobody will invest until and unless he is
fully convinced. Investors should be made to realize that ignorance is
no longer bliss and what they are losing by not investing.

Mutual funds and Insurance policies offer a lot of benefit which no

other single option could offer. But most of the people are not even
aware of what actually a mutual fund is and moreover they are still
unaware of the combination of Mutual Fund + Insurance Policy, i.e.
SIP+INSURE PLAN. They only see it as just another investment option.
So the advisors should try to change their mindsets. The advisors
should target for more and more young investors. Young investors as
well as persons at the height of their career would like to go for
advisors due to lack of expertise and time.

The advisors may try to highlight some of the value added benefits of
MFs such as tax benefit, rupee cost averaging, and systematic
transfer plan, rebalancing etc. these benefits are not offered by other
options single handedly. So these are enough to drive the investors
towards mutual funds. Investors could also try to increase the
spectrum of services offered.

Now the most important reason for not availing the services of
advisors was spotted was being expensive. The advisors should try to
charge a nominal fee at the beginning. But if not possible then they
could go for offering more services and benefits at the existing rate.
They should also maintain their decency and follow the code of ethics
so that the investors could trust upon them. Thus the advisors should
try to attract more and more persons and turn them into investors
and finally their clients.

62
 Questionnaire:

Name :
Age :
Income per annum :
Gender :
Occupation :
Contact No :

Have you invested /are you interested to invest in mutual

funds or to take an Insurance policy?

Yes [ ] No [ ] (plz. attempt the next question)

What is the most important reason for not investing in

mutual funds and in Insurance policies?

Lack of knowledge about mutual funds/insurance [ ]

Enjoys investing in other options [ ]
Its benefits are not enough to drive you for investment [ ]
No trust over the fund managers [ ]

Where do you find yourself as a mutual fund investor/an

insurance policy owner?

Totally ignorant [ ]
Partial knowledge of mutual funds [ ]
Aware only of any specific scheme in which you invested [ ]
Fully aware [ ]

63
 Where from you purchase mutual funds/insurance
policy?
Directly from the AMCs [ ]
Brokers only [ ]
Brokers/ sub-brokers [ ]
Other sources [ ]

Which feature of the mutual funds allure you

most?

Diversification [ ]
Professional management [ ]
Reduction in risk and transaction cost [ ]
Helps in achieving long term goals [ ]

According to you which are the most suitable stage

to invest in mutual funds/take an Insurance policy?

Young unmarried stage [ ]

Young Married with children stage [ ]
Married with older children stage [ ]
Pre-retirement stage [ ]

64
 Bibliography

Market Research (Naresh Malhotra) Consumer Behavior

Marketing Management (Philip Kotler)

Websites:
www.reliancemoney.com
www.mutualfundsindia.com
www.valueresearchonline.com
www.moneycontrol.com
www.morningstar.com
www.yahoofinance.com
www.theeconomictimes.com
www.rediffmoney.com
www.bseindia.com
www.nseindia.com
www.investopedia.com
www.scribd.com
www.online.sagepub.com
www.google.com
www.reliancemoney.co.in

Journals & other references:

The Economic Times, Jan 2007 issue

R-Money factsheet and journals, year 2006, vol.3, page- 33-45
Business Standard, June 2006 issue
The Telegraph, 5th, Feb 2007
Business India, September,2004 issue
Fact sheet and statements of various fund houses.2008
Money Today, March, 2007, page 22-31
Investment India, June 2005, Page 56-59

65