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“Customer Satisfaction at RelianceMoney, Ajmer”

A project Report submitted in partial fulfillment of the

requirements for the degree of

MASTER OF BUSINESS ADMINISTRATIONAffiliated to Punjab Technical University, jalandar

Submitted to Submitted by

Ms. Manoj Mittal DeepakMBA 4 t h Semester

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ACKNOWLEDGEMENTS

I take this opportunity to express my gratitude to all the people who have guided and

helped me directly or indirectly in the course of completion of my project.

I feel immense pleasure to express my profound thanks to my guide Ms. Hina Khan

(HR Manager), who gave me an opportunity to do my summers at RELIANCE

Money.

I am thankful to my Faculty Guide Ms Manoj Mittal (Lecturer) for her constant

support and guidance. Her valuable suggestions have helped me to complete my

project successfully.

Deepak

(i)

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SUMMARY

The basic objective of any financial services company would be to provide an absolute tailor

made products and services to the customer and to retain them into the organization, but to

retain a particular customer is not easy because customer expectations change by time and

it becomes a tough job for the companies to curb the needs of their customers. Now with the

case of asset management company which is getting its pace and a lot of companies are

emerging as players, here a study has been undertaken with regards to RELIANCE MONEY

where study looks into the expectation of the customers regarding mutual funds and issues

relating to customers expectation. The need for this research is to emphasis the

expectations of customer of mutual funds and how the company in contrast to the

expectations is performing.

This research is conducted to understand the customer’s perception towards mutual fund.

Till yesterday people had very less knowledge for mutual funds because brokerage

companies in India have not made efforts to expand the market. They have been doing

business with the same clientele. There is also a lack of investor awareness as far as

markets are concerned. The Harshad Mehta scam and various other scams have created a

bad impression in people's minds and this need to be changed. Just to put things in

perspective, India has 330 million bank accounts. The mutual fund industry has 30 million

unique folios. Unfortunately, in the broking industry, the number of people with Demat

accounts has continued to stagnate at 5.85 million in the last 10-12 years, which is

worrisome. Every industry in India has grown over the last 10 years except this one.

Whatever retail participation exists is coming from bigger cities such as Mumbai and Delhi.

The services have not reached bottom-of-the-pyramid towns. Reliance is conducting investor

awareness campaigns every Saturday at Reliance money centers.

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. The flow chart below

describes broadly the working of a mutual fund.(ii)

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CONTENTS

S. No. Topic Page no.

Acknowledgement (i)

Summary (ii)

1. Introduction 2

2. Purpose of study 3

3. Objectives 4

4. Limitations of Study 5

5. Research Methodology 6

6. Industry Profile 7

7. Company Profile 15

8. SWOT analysis of the organization 24

9. Analysis 28

10. Findings and suggestions 3811. Conclusions & Recommendations 40

Annexure

Questionnaire (i)

Bibliography (iii)

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INTRODUCTION,

OBJECTIVES &

RESEARCH

METHODOLOGY

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INTRODUCTION

Customer satisfaction is a measure of how products and services supplied by a

company can meet the customer’s expectations.

Customer satisfaction is still one of the single strongest predictors of customer

retention. It’s considerably more expensive to attract new customers than it is to

keep old ones happy. So measuring customer satisfaction is very crucial.

With better understanding of customers' perceptions, companies can determine the

actions required to meet the customers' needs. They can identify their own strengths

and weaknesses, where they stand in comparison to their competitors, chart out path

for future progress and improvement. Customer satisfaction measurement helps to

promote an increased focus on customer and helps in improvements in the

processes used within the company.

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2

PURPOSE OF THE STUDY

The main purpose of the study is to know the expectations of those investors who

invested in RELIANCE mutual funds and the satisfaction levels of investors with the

services provided by RELIANCE money, Ajmer.

In the present competitive environment it is very crucial for every business firm to

ensure satisfaction to its customers. According to one survey it was found that it

costs five times more to attract a new customer than to retain an existing customer.

Here the main purpose of the survey is to know the various factors that are very

important in satisfying the customers’ needs and to know how RELIANCE money isensuring its customers satisfaction.

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3

OBJECTIVES

The following are the objectives of the Management project.

To understand the different investment options provided by RELIANCE

MONEY through it’s mutual fund schemes.

To know the investors’ expectations on mutual funds offered by RELIANCEMONEY.

To know the various services provided by RELIANCE Money to its investors.

To study the satisfaction levels of customers of mutual funds in RELIANCEMONEY.

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4

LIMITATIONS

As the data was collected through questionnaire, there are chances of biased

information provided by the respondent.

The study is confined to the existing customers of RELIANCE MONEY only.

The survey will be limited only to Ajmer city.

The time duration of the study through questionnaire was 12 days, which is less

to cover 30 % of total customers which is an ideal size for a sample.

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5

RESEARCH METHODOLOGY

Data for the survey is collected through:

Primary sources

• Observation of customers’ responses and feed back in Reliance

Money office.

• Using structured questionnaire for the existing customers.

Secondary Sources

• Company Brochures

• Company Website

• Books

• Internet

Sample size: sample size for the survey is 100.

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Type of sampling: stratified sampling technique is used for collecting theprimary data. The data is collected only from RELIANCE customers.

Methods used for analysis: bar charts and pie charts are the tools thatwill be used in analyzing the data.

6

INDUSTRY PROFILE

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INTRODUCTION TO MUTUAL FUND 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 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 qualities 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 1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is

less than the deposits of SBI alone, constitute less than 11% of the total deposits

held by the Indian banking industry. The main reason of its poor growth is that the

mutual fund industry in India is new in the country. Large sections of Indian investors

are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all

mutual fund companies, to market the product correctly abreast of selling. The

mutual fund industry can be broadly put into four phases according to the

development of the sector. Each phase is briefly described as under.

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 regulatoryand 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).

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LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under

management.

8

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 end of January 2003, there were 33 mutual funds with

total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of

assets under management was way ahead of other mutual funds.

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

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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.

9

Mutual Fund Operation Flow Chart

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the

organizational set up of a mutual fund:

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10

Mutual funds in INDIA have a 3-tier structure of Sponsor – Trustee – AMC.

Sponsor is the promoter of the fund.

Sponsor creates the AMC and the trustee company and appoints theBoards of both these companies, with SEBI approval.

A mutual fund is constituted as a Trust

A trust deed is signed by trustees and registered under the Indian Trust

Act.

The mutual fund is formed as trust in INDIA, and supervised by the Board

of Trustees.

The trustees appoint the asset management company (AMC) to actually

manage the investor’s money.

The AMC’s capital is contributed by the sponsor. The AMC is the business

face of the mutual fund.

Investor’s money is held in the Trust (the mutual fund). The AMC gets a

fee for managing the funds, according to the mandate of the investors.

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Sponsor should have at-least 5-year track record in the financial services

business and should have made profit in at-least 3 out of the 5 years.

Trustees are appointed by the sponsor with SEBI approval.

At-least 2/3 of trustees should be independent.

At-least ½ of the AMC’s Board should be independent members.

An AMC of one fund cannot be Trustee of another fund.

AMC should have a net worth of at least Rs. 10 crore at all times.

AMC should be registered with SEBI.

AMC signs an investment management agreement with the trustees.

Trustee Company and AMC are usually private limited companies.

11

Trustees oversee the AMC and seek regular reports and information from

them.

Trustees are required to meet at least 4 times a year to review the AMC.

The investor’s funds and the investments are held by the custodian.

Sponsor and the custodian cannot be the same entity.

R&T agents manage the sale and repurchase of units and keep the unit

holder accounts.

If the schemes of one fund are taken over by another fund, it is called as

scheme take over. This requires SEBI and trustee approval.

If two AMCs merge, the stakes of sponsor’s changes and the schemes of

both funds come together. High court, SEBI and Trustee approval needed.

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If one AMC or sponsor buys out the entire stake of another sponsor in an

AMC, there is a takeover of AMC. The sponsor, who has sold out, exits the

AMC. This needs high court approval as well as SEBI and Trustee approval.

Investors can choose to exit at NAV if they do not approve of the transfer.

They have a right to be informed. No approval is required, in the case of open

ended funds.

For close ended funds investor approvals is required for all cases of

merger and take over.

12

REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA

The regulation of mutual funds in India is governed by the SEBI vide the SEBI

(Mutual Fund) Regulation, Act 1996 (here in after referred to as SEBI Regulations).

These regulations make it mandatory for mutual funds to have a three-tier structure

of sponsor – Trustee – Asset Management Company (AMC). The sponsor is the

promoter of the mutual fund and appoints the trustees. The Trustees are responsible

to the investors in the mutual fund and appoint the AMC for managing the investment

portfolio.SEBI regulations also provide for who can be a sponsor, trustee and AMC,

specifying the format of agreement between these entities. These agreements

provide for the rights, duties and obligations of these three entities. The UTI is also

structured as a trust. The important difference through is that UTI does not have

sponsors or a separate AMC. Financial intuitions and banks that contributed to the

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initial capital of the UTI have their representatives on UTI’s Board of Trustees, which

oversees the operation of UTI Mutual Fund. The Association of Mutual Funds in India

(AMFI) is a self-regulatory body formed by the various MF Companies to address the

practices and policies of various aspects like new scheme launches, payments to

intermediaries’ comparisons and other ethical systems.

Likewise, different companies have their own Compliance and Audit offices, which

are mandated to control and report adherence to and deviations if any on the

regulations and policies issued by SEBI.

ADVANTAGES OF MUTUAL FUNDS

Professional Management

Diversification

Convenient Administration

Return Potential

Low Costs

Liquidity

Transparency

Flexibility

Choice of schemes

Tax benefits

well regulated

13

MUTUAL FUNDS STRUCTURE /COMPANY STRUCTURE

Establishes the

mutual fund as a

trust and

registers with

SEBI

Mutual fund

(For e.g. Reliance

AMC)

Asset

Management

Company.

Hold unit holders funds in

mutual fund. Enters into an

agreement with SEBI.

Floats mutual funds as per

the regulations of SEBI

regulations.

Sponsor

Company

Managed by the

board of

trustees.

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14

Custodian

Registrar

Provides custodial services.

Provides registrar and

transfer services.

Distributors

Provides the network for

distribution of schemes to

the investors.

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COMPANY PROFILE

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COMPANY PROFILE

Introduction

Reliance Money is promoted by Reliance Capital; one of India's leading and fastest

growing private sector financial services companies, ranking among the top 3 private

sector financial services and banking companies, in terms of net worth. Reliance

Money is a part of the Reliance Anil Dhirubhai Ambani Group.

It is a one-stop-shop, providing end-to-end financial solutions (including mobile and

web-based services). It has the largest non-banking distribution channel with over

10,000 outlets and 20,000 touch points spread across 5,165 cities/ towns; catering to

the diverse needs of over 3 million existing customers. Reliance Money is a

comprehensive electronic transaction platform offering a wide range of asset

classes. Reliance Money endeavors to change the way investors transact in financial

markets and avails financial services. It provides customers with access to Equity,

Equity and Commodity Derivatives, Offshore Investments, Portfolio Management

Services, Wealth Management Services,

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

Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and

Money Changing services. Reliance Capital Ltd. has also interests in asset

management, life and general insurance, private equity and proprietary investments,

stock broking and other financial services.

In addition to the home-grown portfolio of products and services that Reliance Money

has to offer, Reliance Money also distributes a variety of third party financial

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products. It also assists millions of investors in creating customized individual

portfolios based on their diverse investment needs and risk profiles

16

Reliance Money is the largest broker and distributor of financial products in India with

the largest distribution network and almost over 3,174 employees. Money has

increased its market share among private financial companies to nearly Convenient

& effective – Anytime & anywhere financial transaction

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.

Mission

To create and nurture a world-class, high performance environment aimed at

delighting our customers by providing endless financial products in all part of the

country.

Success sutras of Reliance Money

The success story of the company is driven by 8 success sutras adopted by it

namely:

1. Trust

2. Integrity

3. Dedication

4. Commitment

5. Enterprise

6. Hard work and Team play

7. Learning and Innovation,

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8. Empathy and Humility.

These are the values that bind success with Reliance Money

17

Achievements

List of recent achievements

• In two successive joint surveys by The Economic Times’ Brand Equity and

ACNielsen, Reliance was recognized as India’s Most Trusted Mutual Fund.

• The company also walked away with seven other scheme prizes – five of

them being outright winners – in the Gulf 2007 Lipper Awards. These included

the Fund House of the Year by Lipper GCC as well as ICRA Online and the

Most Improved Fund House by Asia Asset Management.

• It also received the NDTV Business Leadership Award 2007 in the mutual

fund category and runners’ up recognition as the Best Fund House in the

Outlook Money-NDTV Profit Awards.

• In addition, the company received the coveted CNBC Web18 Genius of the

Web distinction for the Best Mutual Fund Website in the country. RCAM was

awarded the India Onshore Fund House 2008 instituted by the Asian Investor

magazine.

• The company also won the India Equities award in the 5-yearPerformance

category.

Other achievements

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Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year

March 31, 2009 as against Rs. 24 billion of the corresponding previous period, an

increase of 48%. It also achieved a net profit of Rs. 368 million (US$ 8 million) for the

same period, as against a net profit of Rs. 1 million for the corresponding previous

period

18

• Reliance Money is the one of the leading brokerage and distributor of financial

products in India with more than 3 million customers

• Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi,

Webaroo, optionsXpress Holdings, Goldride Securities, World Gold Council, Wincor

Nixdorf and DBS Vickers to facilitate better access to wider world class choices to its

customers

• It is amongst the leading Mutual fund distributors of the country distributing

products of 20 AMCs. It is the the largest private sector partner for Western Union

Money Transfer in India

• To further improve its position in the money changing and money transfer business,

Reliance Money has acquired a significant share holding in Wall Street Finance Ltd,

a leading provider of money changing and money transfer services in the Country

• Reliance Money has tied up with Kuoni India and plans to retail its forex

products/services through the national network of over 70 Kuoni outlets

• Reliance Money has tied up with India Post and World Gold Council to sell gold

coins through the post office network across the country

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• Reliance Money has obtained Category I Merchant Banking License from the

Securities and Exchange Board of India. This new license allows Reliance Money to

provide a wide range of investment banking services such as Issue Management,

Underwriting, Private Equity Advisory/ Syndication and Corporate Finance services

in India

19

• Reliance Money is taking its first steps into the Commodities Exchange business

and is in the process of acquiring a 15 per cent stake in Hong Kong Mercantile

Exchange (HKMEx). With this holding, Reliance Money becomes the second-largest

shareholder in the commodity exchange and will have a board membership.

Reliance Money is the first Indian firm to acquire a stake in an international exchange

• It has also obtained approval from the Ministry of Consumer Affairs for acquiring

10% stake in the National Multi-Commodity Exchange of India Ltd. (NMCE).

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20

Organizational Structure

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21

Working At Branch level

Reliance Money Ajmer (Branch office)

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22

Staff at Branch Level

At Reliance Money, Ajmer, the following hierarchy exists:-

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• Three Centre managers.

• Eight to ten Business Development Executives under each Centre manager.

• Business associates under each Centre Manager their number depending

upon the area allotted to each CM.

•

Remisars under each centre manager.• Team leader and PFC”s under him for life insurance.

• One Customer Support Executive and One Senior Finance executive.

Centre Manager

The Centre manager is the Heart of the office who acts as a connection between

Head office (Mumbai), National head, Zonal head, Regional head, Area head,

Cluster head, The Clients, Remisars, Business associates and the Business

development executives.

The Centre manager is responsible for the following functions;

1. Organizing all the BDE’s, Business Associates and Remisars under one

banner.

2. Making sure that the BDE’s, Business Associates and Remisars are carrying

out their functions well i.e. expanding the business in form of selling the Share

trading A/c’s , mutual funds, selling general along with life insurance policies .

3. Planning strategies for increasing the business (i.e. installation of canopies at

the right place, appropriate advertising in different business Expo’s or

corporate meets. Etc.)

4. Interviewing and Selecting Business development executive for the

organization.

5. Identifying the potential agents in the market and making them the business

associate or remisar of Reliance Money for good business prospects.

6. Assisting the new BDE’s or remisars in handling the clients.

7. Training the new BDE’s and the remisars about the product and how to

approach the clients.

8. Reporting the regional head on the daily basis about the daily business

performed

23

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SWOT Analysis

Strengths

• One of India’s leading and fastest growing private sector financial services

companies, and ranks among the top 3 private sector financial services and

banking companies, in terms of net worth.

• It is India’s first insurance company to be awarded the ISO 9001:2000

certification across all functions, processes, products and locations pan-India. The quality assurance provides an edge over other players.

• Company issued 36.57 Lac policies during the year as compared to 14.60 Lac

in the previous year thereby registering a growth of 150%.

• RGIC has been able to give highest ROI of 11.27% in last five years. The net

worth has doubled to Rs.4.94 billion from last year’s Rs.2.59 billion.

• Excellent outreach with a large distribution network. It has 200 branches across

171 cities and over 20,000 intermediaries. The setup provides the company is

very strong and very effective distribution network, and consequently a strong

penetration in the market.

• Expert’s and research team to make strategies and products for company as

well as clients base to resolve the problem.

• Capture the 17% of the Private Sector Share & 7% share of the General

Insurance Industry

24

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• Reserves and Surplus has increased five times to Rs.4.998 billion from Rs.1.04

billion previous year.

• The Company has earned Rs.1034 crore of New Premium Business in

Financial Year 2008 which is 41% share of the Private Sector Industry & 33% of

the Industry as whole.

• Company is ranked number one in the New Premium Business in Financial

Year 2008. Other than this, it maintains a good database of it existing and

potential customer, has a brand image and low pricing strategy

• Reliance Money unlike other brokering houses has introduced a new prepaid

system of brokerage for the share trading in which it provides the lowest form of

brokerage charged from an investor.

Weaknesses

• Dependence on fellow subsidiaries for various supplies.

-Extra control or interference from fellow subsidiaries.

• Sudden expansion in year 2007-08 by establishing more than 125 branches

has increased operations and administration expenses due to which losses

incurred.

• Due to the emphasis on recruiting young people in the company, staff is

inexperienced.

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25

• Clientage is not so loyal as compared to the clientage of other competing

companies in the same industry

• The phenomenon of job hopping is very common in the company. So, the

problem of loyalty towards the company on behalf of the employees is a major

problmem

Opportunities

• IRDA has removed controls on pricing in General Insurance business with

effect from 1st January, 2008. IRDA had notified that except for Motor Third

Party risks, all other new insurances and renewals effective on or after 1st

January, 2008, insurers shall be free to quotes rates of premium in accordance

with file and use guidelines.

• General insurance industry in India has grown at 15% CAGR in terms of gross

premium collection.

• The company has moved to 3rd position amongst Private Sector Insurers in

Financial Year 2008 & is ranked 7th amongst the Industry with 14 General

Insurance players.

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26

• In india, there is still a lot more market to be tapped which is getting supported

by increasing spending and thereby saving of people.

• The mindset of people have also started changing. Now, they consider trading

as a good source of earning.

• The entire workforce consists of mostly youngsters, which means they can be

encouraged and motivated to do good work because they have a long way to

go and most of them are eager to climb the ladder.

Threats

• New Entrants

-Future General India Life Insurance Company Limited -Sep. 2007

-IDBI Fortis Life Insurance Company Ltd. –Dec 2007

-Bharti Axa General Insurance Company Ltd. -June 2008

• New joint ventures (JVs) by industry giants

- Max India forms JVC with Bupa Finance to foray into Health Insurance

-Shriram Group is to enter General Insurance Market

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• Stiff competition from existing players in the market

27

EMPIRICAL ANALYSIS

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TABLE SHOWING DIFFERENT AGE GROUP OF THE RESPONDENTS

Inference: The majority of the respondents i.e. 46% are from the age group of 36-

54. And the second largest age group is 18-36. And the remaining investors are

from 54-72 age group.

AGE NO OF RESPONDENTS

0-18 0

18-36 40

36-54 50

54-72 10

72 & ABOVE 0

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29

PREFERRED FUND STRUCTURE

Structure of the fund No of investors preferred

Open – ended fund 64

Close – ended fund 24

Interval funds 12

Total 100

Inference: It is observed that 64 out of 100 that are 64% of investors are interested

to invest their money in open ended funds the reason can be attributed to its

convenience to enter and exit at any time. 24% investors preferred to invest in close

ended funds because they are long term investors as well as they want some tax

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benefits. And the remaining 12% investors replied that they don’t mind to invest in

any funds including interval funds

30

INVESTORS SCHEME PREFERENCE

Preferred fund scheme No of investors preferred

Growth scheme 52

Income scheme 16

Balanced scheme 32

Total 100

Inference: In the above given graph it is showed that 52 out of 100 that are 52% of

customers are interested to invest in growth schemes. 8 out of 25 that are 32% of

customers are interested to invest in Balanced schemes and the remaining 16%

customers are preferred to invest in Income schemes.

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31

INVESTORS FUND PREFERENCE

Type of fund No of investors preferred

Tax saver funds 15

Index funds 40

Sectorial funds 45

Total 100

Inference: Out of 100 investors 15 that is 15% of customers are preferred to invest

in Tax saver funds. 40 that is 40% of investors are preferred to invest in index funds

which give returns based upon respective indexes.. 45 that is 45% of investors are

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interested to invest in sectorial funds that means they are ready to take high risk but

want high returns

32

TABLE SHOWING REPEATION OF INVESTMENTS MADE BY THE

RESPONDENTS

RESPONSE NO OF RESPONDENTS

YES 64

NO 36TOTAL 100

No of Respondents

YES, 64

NO, 36YES

NO

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Inference: Out of 100 respondents 64 customers have already reinvested in the

company, while the rest are waiting for a correct time to enter in the market for the

second time.

33

GETTING MONTHLY / QUARTERLY STATEMENTS IN TIME

Getting Monthly / Quarterly

statements from time to time

No of Investors

Yes 70

No 30

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Inference:70 out of 100 people getting monthly/quarterly statements from time

to time 30 out of 100 people not getting monthly/quarterly statements from time

to time .

34

RESPONDENTS RANKING ON THE CUSTOMER SERVICE OF

RELIANCE MUTUAL FUNDS

RANKS NO OF RESPONDENTS

ONE 34

TWO 16

THREE 26

FOUR 16

FIVE 8

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Inference: Out of 100 respondents 34 ranked RELIANCE as Rank One for

customer service function.

35

RESPONSE REGARDING AREAS FOR IMPROVEMENT BY

RELIANCE MUTUAL FUNDS

AREAS NO OF RESPONDENT

CUSTOMER SERVICE 35

MONITORING OF FUND 38

AGENTS TRAINING 22

OTHERS 5

TOTAL 100

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Inference

Out of 100 respondents 38 respondents want RELIANCE to improve at their fund

monitoring function.

36

RESPONSE REGARDING USAGE OF VALUE ADDED SERVICES

OFFERED BY RELIANCE MUTUAL FUNDS

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Inference: Most of the customers are making use of value added services of Ecs

and a few of them make use online transaction and direct investment.

37

VALUE ADDED SERVICES NO OF RESPONDENT

ATM 0

Ecs 60

Online transaction 20

Direct investment 40

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FINDINGS &

SUGGESTIONS

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FINDINGS & SUGGESTIONS

The findings for the above research are as follows:-

It was found that majority of the investors i.e.46% are from the age group

of 36-54. This is the group of middle age people who deserve to invest for

their future financial needs.

It was found that Out of 100 respondents 64 customers have already

reinvested in the company, while the rest are waiting for a correct time to

enter in the market for the second time.

It was observed that Out of 100 respondents 62 investors have reinvested

due to better returns and performance of funds. While the rest of the

investors have voted for performance of funds and services provided by

the company.

It was observed that Out of 100 investors 15 that is 15% of customers are

preferred to invest in Tax saver funds. 40 that is 40% of investors are

preferred to invest in index funds which give returns based upon

respective indexes.. 45 that is 45% of investors are interested to invest in

sectorial funds that means they are ready to take high risk but want high

returns

It was found that Out of 100 respondents 34 ranked RELIANCE as Rank

one for customer service function.

It was found that Out of 100 respondents 38 respondents want RELIANCE

to improve at their fund monitoring function

39

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CONCLUSION AND RECOMMENDATIONS

The following suggestions are the outcome of the research and applications of these

suggestions are not necessary:-

The company should come up with innovative ways of service at their door

steps this may be a costly affair but will surely give positive results in the long

run.

The company should take the initiative of training the advisors about the new

funds from time to time which also makes the advisors connected to thecompany.

The company should also emphasize on the monitoring of funds which directly

relates to the returns of a specific fund.

The company should focus on the advertising strategy and also the marketing

of the product.

The company should emphasize on creating an awareness about the SIP

options which is always preferable when the market is volatile.

The company doesn’t have enough tax saving plans or appropriate plans for

tax so which they should come up with.

There should be a regular system of monitoring the satisfaction of customers.

Focus of employees should be customers’ satisfaction.

24*7 as this will enable the organization as a whole and the branch in specific

to become long term choice of customers.

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40

ANNEXURE

QUESTIONNAIRE

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NAME:

AGE:

PROFESSION:

1. Have you ever invested in RELIANCE Mutual Funds?

Yes [ ]

No [ ]

2. If yes why did you choose RELIANCE Mutual Funds?

3. By structure in which type of schemes did you invested?

Open - Ended Schemes [ ]

Close - Ended Schemes [ ]

Interval Schemes [ ]

4. By investment objective in which type of schemes have you invested?

Growth Schemes [ ]

Income Schemes [ ]

Balanced Schemes [ ]

5. In which type of fund you want to invest?

Tax saver funds [ ]

Index funds [ ]

Sector ial funds [ ]

(i)6. Did you repeat your investment after your initial investments?

Yes No

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7. Are you getting Monthly / Quarterly statements from time to time?

Yes [ ]

No [ ]

8. Are you satisfied with portfolio management managed by RELIANCE Money?

Yes [ ]

No [ ]

9. Which value added service you are using?

ATM [ ] Online transaction [ ]

Ecs [ ] Direct investment [ ]

10. Are you satisfied with value added services offered by RELIANCE Money?

Yes [ ]

No [ ]

11.What is your opinion on RELIANCE Mutual Funds overall performance?

Excellent [ ]

Good [ ]

Better [ ]

Bad [ ]

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12.In what areas do you want RELIANCE mutual funds to improve?

E.g. Customer service

Monitoring of fund

Agents training

Others

(ii)

BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS

MUTUAL FUNDS IN INDIA – ICFAI University press

Published by ICFAI BUSINESS SCHOOL

Research Methodology- C.R. Kothari

COMPANY BROCHURES AND PAMPHLETS

WEBSITES

• www.reliancemutualfunds.com

• www.amfiindia.com

• www.mutualfundsindia.com

• www.mutualfundsindia.com

http://www.reliancemutualfunds.com/

http://www.amfiindia.com/

http://www.mutualfundsindia.com/


http://www.reliancemutualfunds.com/

http://www.amfiindia.com/



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• www.ask.com

• www.faq.com

• www.bseindia.com

• www.amfiindia.com/mutual funds/nav/about funds/open ended schemes.com

• www.investopedia/aboutus/html

http://www.ask.com/

http://www.faq.com/

http://www.bseindia.com/

http://www.amfiindia.com/mutual%20funds/nav/about%20funds/open%20ended%20schemes.com

http://www.investopedia/aboutus/html

http://www.ask.com/

http://www.faq.com/

http://www.bseindia.com/

http://www.amfiindia.com/mutual%20funds/nav/about%20funds/open%20ended%20schemes.com

http://www.investopedia/aboutus/html

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