sana MY PMS

8/14/2019 sana MY PMS

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A STUDY

ON

IN THE TESTING TIMES OF THE MARKET

PMS AS AN INVESTMENT AVENUE

IN

RELIANCE MONEY

A summer training project report submitted in partial fulfillment of

the requirements for the award of the degree of Masters of Business

Administration (MBA) from Rajasthan Technical University (RTU), Kota

BATCH (2007-2009)

SUBMITTED BY: FACULTY GUIDE:

Syeda Mehrunnisa Mr.R.Mukundan

MBA 3rd Sem (Finance)


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COMPUCOM INSTITUTE OF INFORMATIONTECHNOLOGY AND MANAGEMENT

AN ENGINEERING & MANAGEMENT COLLEGE, JAIPUR

(Approved by AICTE & Affiliated to University of Rajasthan & RTU, Kota)

ACKNOWLEDGEMENT

Ones mind, once stretched by a new idea; never regains its original dimensions

-Oliver Windell Holmes


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On this note I would like to take this opportunity to convey my respect and special

gratitude towards Mr. Abhishek Mehra (Centre manager, Ajmer branch) who

considered me worthy of doing this unique and untruden project in their esteemed

establishment and never failed to satisfy my over-zealous thirst to obtain information.

Working on this project was a great experience.

I gave my sincere thanks to Mr. Nitin Bhargava and Mr. Piyush Tiwari for allowing

me to undertake this training and guiding me along. I also like to thank the staff of

Reliance Money which was very supportive.

I would like to express my heartiest gratitude to Mr.Surendra Surana (Director

CIITM),

Mr.R.Mukundan (Coordinator MBA) and all the faculty members ofCIITM, Jaipur

for their support and guidance.

No language is ever adequate to express my gratitude towards my family members for

their dedicated and enthusiastic cooperation.

(Syeda

Mehrunnisa)


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DECLARATION

I hereby declare the project work carried out during the period from 1st July, 2008 to 22nd

August, 2008 at Reliance Money, Ajmer is my original work. I hereby assure that this is

not copied work to the best of my knowledge.

(Syeda Mehrunnisa)


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CONTENTS

Chapters Pages

1. INTRODUCTION TO THE INDUSTRY

Founder....1 - 3

Overview..4 - 8

2. INTRODUCTION TO THE COMPANY

Reliance Capital Ltd..9 - 10

Introduction of Reliance Money.11 - 15


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Different Ranges of Products..16 - 21

Reliance Money Structure (Board of Directors)..22

SWOT Analysis....23 - 24

3. PORTFOLIO MANAGEMENT SERVICES (PMS)

An Introduction25 - 38

Shariah Complaint PMS.39 - 48

Domestic PMS....49 - 53

4. RESEARCH METHODOLOGY..54 - 57

Title

Objective of the Study

Scope of the Study

Significance of the Industry

Significance of the Research

Research Technique

Sampling Methodology

Limitations of the Research

5. DATA ANALYSIS AND INTERPRETATION58 - 72

6. FACTS AND FINDINGS...73

7. RECOMMENDATIONS ..74

8. CONCLUSION...75

9. ANNEXURE

Questionnaire....................................................................................76 79

10. BIBLIOGRAPHY..........................................................................................80


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TABLES AND CHARTS

Pages

1. Occupation wise representation...................................................................58

Table 1.1

Chart 1.2

2. Categorization on the basis of religion.........................................................59Table 2.1

Chart 2.2

3. Data Representation according to age-group..............................................60

Table 3.1

Chart 3.2

4. Data showing yearly income..........................................................................61

Table 4.1

Chart 4.2

5. Data showing investment objective...............................................................62

Table 5.1

Chart 5.2

6. Data showing willingness to take financial risk............................................63

Table 6.1

Chart 6.2

7. Data showing feelings of respondents, after they make a financial

decision...64

Table 7.1

Chart 7.2


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8. Data showing investment experience..............................................................65

Table 8.1

Chart 8.2

9. Description of expected future income over next 5 years..............................66Table 9.1

Chart 9.2

10. Data showing ease of management..............................................................67

Table 10.1

Chart 10.2

11. Data showing, "Who manages your portfolio?........................................68

Table 11.1

Chart 11.2

12. Data showing the no: of respondents who need a fund manager.............69

Table 12.1

Chart 12.2

13. Data showing the awareness level of the respondents towards PMS.......70

Table 13.1

Chart 13.2

14. Data showing respondents interest in Shariah Compliant

Investments.....................................................................................................71

Table 14.1

Chart 14.2

15. Data showing the benefits of PMS which had attracted respondents.......72

Table 15.1

Chart 15.2


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INTRODUCTION TO THE INDUSTRY


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RELIANCE ANIL DIRUBHAI AMBANI GROUP

FOUNDER

Growth has no limit at Reliance. I keep revising my vision.Only when you can dream it, you can do it

Dirubhai.H.Ambani

Founder Chairman Reliance Group


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December 28th ,1932 July 6th ,2002

Few men in history have made as dramatic a contribution to their countrys economic

fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left

behind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the

true genius of Dhirubhai: The corporate visionary, the unmatched strategist, theproud patriot, the leader of men, the architect of Indias capital markets, the

champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth

creator. In one lifetime, he built, starting from the proverbial scratch, Indias

largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of

barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he

converted this fledgling enterprise into an Rs 60,000 crore colossusan

achievement which earned Reliance a place on the global Fortune 500 list, the

first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of Indias capital markets. In 1977,

when Reliance Textile Industries Limited first went public, the Indian stock

market was a place patronized by a small club of elite investors which dabbled in

a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail

investors to participate in the unfolding Reliance story and put their hard-earned


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money in the Reliance Textile IPO, promising them, in exchange for their trust,

substantial return on their investments. It was to be the start of one of great stories

of mutual respect and reciprocal gain in the Indian markets.

Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of

the greatest growth stories in corporate history anywhere in the world, and went

on to become Indias largest private sector enterprise.

Throughout this amazing journey, Dhirubhai always kept the interests of the

ordinary shareholder uppermost in mind, in the process making millionaires out of

many of the initial investors in the Reliance stock, and creating one of the worlds

largest shareholder families.


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AN OVERVIEW

The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector

business houses on all major financial parameters, with a market capitalization of

Rs.325,000 crores (US$ 81 billion), net assets in excess of Rs.115,000 crores (US$ 29

billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion)

Across different companies, the group has a customer base of over 100 million, the

largest in India, and a shareholder base of over 12 million, among the largest in the

world.

Through its products and services, the Reliance - ADA Group touches the life of 1 in 10

Indians every single day. It has a business presence that extends to over 4,500 towns and

300,000 villages in India, and 5 continents across the world.

The interests of the Group range from communications (Reliance Communications) and

financial services (Reliance Capital Ltd), to generation, transmission and distribution of

power (Reliance Energy), infrastructure and entertainment.

VISION

To build a global enterprise for all the stakeholders.

A great future for our country.

To give millions of young Indians the power to shape their destiny. The means to realize their full potential.


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VALUES

Shareholder interest

People Care

Consumer Focus

Excellence in Execution

Team Work

Proactive Innovation

Leadership by Employment

Social Responsibility

Respect for Competition

Shareholder Interest

Reliance value the trust of shareholders, and they keep their interest paramount in everybusiness decision they make, every choice they exercise.

People Care


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Reliance possess no greater asset than the quality of their human capital and no greater

priority than the retention, growth and well-being of their vast pool of human talent.

Consumer Focus

They rethink every business process, product and service from the standpoint of the

consumer so as to exceed expectations at every touch point.

Excellence in Execution

Reliance believe in excellence of execution in large, complex projects as much as smalleveryday tasks. If something is worth doing, it is worth doing well.

Team Work

The whole is greater than the sum of its parts; in our rapidly-changing knowledge

economy, organizations can prosper only by mobilizing diverse competencies, skill sets

and expertise; by imbibing the spirit of thinking together -- integration is the rule,escalation is an exception.

Proactive Innovation

Reliance has nurtured innovation by breaking silos, encouraging cross-fertilization of

ideas & flexibility of roles and functions. They created an environment of accountability,

ownership and problem-solving based on participative work ethic and leading-edge

research.


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Leadership by Empowerment

They believe that leadership in the new economy is about consensus building, aboutgiving up control; about enabling and empowering people down the line to take decisions

in their areas of operation and competence.

Social Responsibility

Reliance believe that organizations, like individuals, depend on the support of the

community for their survival and sustenance, and must repay this generosity in the bestway they can.

Respect for Competition

Reliance respect competition because theres more than one way of doing things right.

We can learn as much from the success of others as from our own failures.


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Corporate Philosophy

Think big. Think different. Think ahead

Dhirubhai preached and personally practiced one mantra throughout his life:

Dream with conviction.


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He built the Reliance empire from scratch and, in a short span of 25 years, catapulted it

to become one of the top Fortune 500 corporations of the world an achievement

unparalleled in history.

He was deeply rooted in traditional Indian values, yet Dhirubhai possessed the outlook of

a modern man truly a person of the 21st century. His corporate philosophy was short,simple and incredibly effective: Think big. Think different. Think fast. Think ahead.

Aim for the best. This clearly reflected in his passion for mega-sized projects, as well as

his fascination for cuttingedge technology and desire to always achieve the highest

possible productivity. At Reliance, Dhirubhai was a pillar of inspiration for one and all.

By practicing what he preached, he inspired and encouraged everyone to surpass the best

in the world.

Corporate Mission

The transparent HR policies and robust processes of Reliance are driven by a single

overarching objective: To attract, nurture, grow and retain the best leadership talent in

every sector and industry is which they operate. Companys aim is to create a team of

world beaters that is:

Committed to excellence in quality,

Focused on creation and enhancement of stakeholder valueResponsive to evolving business needs and challenges

Dedicated to uphold the core values of the Group

Corporate Promise

In order to achieve the objectives, company offers their people...

Growth opportunities to expand leadership capabilities


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True meritocracy and freedom to choose career paths

Opportunities to develop and hone leadership and functional capabilities

An entrepreneurial environment where people can pursue their dreams

Competitive compensation periodically identifies exceptional individual and teamachievers among the various business functions and verticals in the Group.


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INTRODUCTION TO THE COMPANY


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RELIANCE CAPITAL LTD

Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani Group, and is

ranked among the 20 most valuable private companies in India.

Reliance Capital is 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 groups, in terms of net worth.

Reliance Capital has interests in asset management and mutual funds, life and general

insurance, private equity and proprietary investments, stock broking, depository services,

distribution of financial products, consumer finance and other activities in financial

services.

Reliance capital is mainly divided into five parts according to their area of operations.

These parts are:-

Reliance general insurance company LTD

Reliance life insurance company LTD

Reliance capital asset management company LTD (Reliance mutual fund)

Reliance portfolio management.

Reliance Money LTD (Flagship Company of reliance capital)

The Reliance Anil Dhirubhai Ambani Group is one of India's top 2 business houses, and

has a market capitalization of over Rs.2,25,000 crore (US$ 53 billion), net worth in

excess of Rs.58,000 crore (US$ 14 billion), cash flows of Rs. 12,000 crore (US$ 3

billion) and net profit of Rs. 8,000 crore (US$ 2 billion)


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INTRODUCTION OF RELIANCE MONEY

Reliance Money is a comprehensive financial services and solutions provider. Its

endeavor is to change the way India transacts in financial markets and avails financial

services. Reliance Money provides a single window, enabling customers to access,

amongst others, Equity & Commodity, Derivatives, Mutual Funds, IPOs, Life & General

Insurance Products, Offshore Investments, Money Transfer, Money Changing, Gold

Coins, Credit Cards and now Portfolio Management Services.

Reliance Money is a group company of Reliance Capital and reliance capital is a

company of Anil Dhirubhai Ambani Group, one of Indias leading and fastest growing


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

financial services and banking companies in terms of net worth.

Reliance Money currently offers its services in Broking and Distribution of

Financial services and Products. Thus, Reliance Money is also dealing into

general and life insurance and mutual funds. Other than this reliance money is

also dealing in gold coins, credit cards and various types of loans. So Reliance

money has a wide range of products to offer its customers.


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Currently 2800+ employees across 124 locations spread across the country.

Largest NBFC in India.

Among the top 3 Private Sector Companies in Financial services sectors.

Zero debt company and no NPAs.

2 Million customers within 12 months.

20000+ touch points, 10000+ outlets across 5000+ towns / cities.

DIVISIONS OF RELIANCE MONEY


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RELIANCE SECURITIES LIMITED will spearhead RelianceADA Groups foray

into the Indian Capital markets,providing investors the facility of anytime-anyway online

trading in all shares and securities.

RELIANCE COMMODITIES LIMITED is the company through which all

commodity-trading facilities would be provided to not only the sophisticated, metro

investor but also to the Indian farmer who needs these commodity services for daily

living.

RELIANCE FINANCIAL SERVICES LIMITED A registered NBFC which will be

offering retail foreign currency trading.

WHY RELIANCE MONEY ?

Reliance Money is the most cost-effective, convenient and secure way for the people to

transact in a wide range of financial products and services


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BUSINESS MODEL

Reliance money has an excellent business model to capture the whole market of any city.

Company has three step model to reach to the potential customers. These three steps are:-

Reliance money branch office

Franchisee

Remisre


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In this model a Reliance money branch in any city select some franchisees.

These franchisees are business associates of the company and there is certain criterion to

give franchisee to any firm and number of franchisee is depends according to the size ofthe city or potential market available. Franchisee can further appoint remissers to do

business in the city. These remissers are individual entity. Number of remissers also

depends on various conditions.

DIFFERENT RANGES OF PRODUCTS

IPO

Online

When an unlisted company makes either a fresh issue of securities or an offer for sale of

its existing securities or both for the first time to the public. This paves way for listingand trading of the issuers securities.When private companies i.e. companies that are

wholly owned by their promoters, invite the public to subscribe to their shares, this issue

of shares is called an Initial Public Offering (IPO).


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Trade In Commodities

Commodities mean rice, wheat, sugar, gold etc. People can trade in these commodities

without owning a piece of the commodity they trade in.

Commodities, which you have been eating or using all these years or donning it as a

fashion accessory or even running you car with, can be now traded on the Indian

exchanges. It has always been traded in the Global exchanges, now it is our turn to turn

to experience the power of commodities.

Trade In Equity


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Equity is a share in the ownership of a company. It represents a claim on the companys

assets and earnings. As you acquire more stock, your ownership stake in the company

increases. The terms share, equity and stock mean the same thing and can be used

interchangeably.

Holding a companys stock means that you are one of the many owners (shareholders) ofa company, and, as such, you have a claim (to the extent of your holding) to everything

the company owns. Yes, this means that technically, you own a portion of every piece of

furniture; every trademark; every contract, etc. of the company.

As an owner, you are entitled to your share of the companys earnings as well as any

voting rights attached to the stock.

Another extremely important feature of equity is its limited liability, which means that,

as a part-owner of the company, you are not personally liable if the company is not able

to pay its debts. In case of other entities such as partnerships, if the partnership goes

bankrupt, the partners are personally liable towards the creditors/lenders and they mayhave to sell off their personal assets like their house, car, furniture, etc., to make good the

loss. In case of holding equity shares, the maximum value you can lose is the value of

your investment.

Even if a company of which you are a shareholder goes bankrupt, you can never lose

your personal assets.

Personal

Finance

There are good times and bad times during every stage of our lives, and being financially

prepared to face all kinds of situations makes the journey of life a lot easier and certainly

more.


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Trade In Derivatives

Derivative products have been around for a long, long time. In fact, as early as the 1650s,

dealings resembling present day derivative market transactions were seen in rice markets

in Osaka, Japan.

The first leap towards an organized derivatives market came in 1848, when the Chicago

Board of Trade (CBOT), the largest derivative exchange in the world, was established.

Derivatives, as the name suggests, are financial instruments that derive their value from

an underlying security or asset.

Today, equity and commodity derivative markets are rapidly gaining in size in India. In

terms of popularity too, these markets are catching on like a forest fire.

Reliance Money, offers their clients the facility to trade in Futures and Options of Index

i.e. Nifty and other Stocks on NSE under its Derivatives Section.

Offshore Investment or Forex

The global foreign exchange market is the biggest market in the world. The nearly USD

2 trillion daily turnover exceeds the combined turnover of the entire worlds stock and

bond markets.


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There are many reasons for the popularity of foreign exchange trading, but among the

most important are, the high liquidity 24 hours a day and the very low dealing costs

associated with trading. The market is so large that a handful of players can never

influence its outcome.

Investments in Mutual

Funds

Reliance Money brings to the clients a unique, hassle-free and paperless way to invest in

Mutual Funds. Clients can now invest on-line in Mutual Funds through Reliance Money.

No more filling application forms manually or any going through other paperwork.

Client needs no signatures or proof of identity for investing. Once client places a request

for investing in a particular fund, there are no manual processes involved. Their bank

funds are automatically debited or credited while simultaneously crediting or debiting

their unit holdings.

Client also gets control over their investments with on-line order confirmations and order

status tracking. Client gets to know the performance of their investments through online

updation of their portfolio with current NAVs.


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Insurance

Life Insurance

Life insurance helps Provide financial assurance & security for your dependents & loved

ones. It is an important part of the financial planning bouquet for all individuals &families. Life insurance products offer comprehensive financial solutions which besides

offering financial security also provide opportunity for saving, investment & tax

planning

General Insurance

It is a system by which the losses suffered by a few are spread over many, exposed to

similar risks. Insurance is a protection against financial loss arising on the happening of

an unexpected event.

It is a hedge against the occurrence of unforeseen incidents. Insurance products help you

in not only mitigating risks but also helps you by providing a financial cushion against

adverse financial burdens suffered.

Accidents... illness... fire... financial securities are the things you'd like to worry about

any time. General Insurance provides you the much-needed protection against such

unforeseen events. Unlike Life Insurance, General Insurance is not meant to offer returns

but is a protection against contingencies. Under certain Acts of Parliament, some types of

insurance like Motor Insurance and Public Liability Insurance have been madecompulsory.


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Gold

Coins

Gold is one of the most precious metals ever mined. Fought for over centuries,Gold has

always been a highly sought after commodity. Gold not only acts as a secure investment,

but is an efficient store of value offering high security & credibility. An instrument of

long term investment, Gold acts as a hedge against inflation besides providing high

liquidity. Most Indians share an emotional bond with Gold nearly bordering on

spirituality.

Festive occasions & auspicious days like Akshaya Trithiya, Dussehra, Dhanteras/Diwali

are days when customers throng Gold selling outlets to have a piece of this precious

metal.

But in a highly disorganized Gold market, the purity aspect and thereby the value for

ones Money during the purchase of Gold has always been a question mark. For the

customer, the lack of access to a branded, affordable, reliable Gold coin has always beena matter of concern.

Reliance aims to bridge this gap by giving 99.99% pure, 24 carat, Swiss Gold coins

through its distribution network.

Available in 0.5g, 1g, 5gm and 8gm denominations, these 24 carat, 99.99% pure,

internationally certified Gold coins cater to a large segment of the society in both the

retail and the corporate world.

Available in tamper proof packaging, the overall look and feel of these coins is far

superior & they possess a great finish. These Gold coins are Ideal for customers or

corporates to be used as a gifting idea, for retail/agent contests, as employee rewards etc.

Retail customers buy these coins just for the pleasure of owning it or as an investment

idea.


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These Gold coins are available at all Reliance Money and Reliance World branches

across.

Portfolio Management Services (PMS) is an investment portfolio in stocks, fixed

income, debt, cash, structured products and other individual securities, managed by a

professional money manager thatcan potentially be tailored to meet specific investment

objectives.

When you invest in PMS, you own individual securities unlike a mutual fund investor,

who owns units of the entire fund. You have the freedom and flexibility to tailor your

portfolio to address personal preferences and financial goals. Although portfolio

managers may oversee hundreds of portfolios, your account may be unique.


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Reliance money structure (board of directors)

SWOT ANALYSIS

Strengths


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Diversified Investment - Share trading are having a number of investment

objectives from which an investor can choose according to his requirements,

time to get returns etc.

Easy procedure - The procedure involved for purchasing or selling shares is

not very easy . Individual investor can also easily understand and can himself

buy or sell shares .

Weaknesses

Market risk - The capital market is highly volatile in nature. No matter how

much one is precautious, he will always be under threat of incurring losses.&

share market is a Satta Bazaar.

No control over cost - There is not much control over the cost of operations as

the market is volatile and the cost increases quickly or dawn rapidly.

High risk - The share market is a place where price of the shares goes up &

down rapidly so it is not possible for initial investor to buy or sale shares

easily.

Opportunities


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Growing capital market - Capital market in India is growing at a very fast

pace and if this pace continuous then Indian capital market will be one of the

strongest economies of the world and investment in this today will then be

very fruitful.

Branch expansion - Large no. of branches are opening day by day and even

Reliance are trapping the countries having almost same type of socio-

economic condition & even same culture etc.

Untapped rural market - Rural market in India is still not covered fully by

the various AMCs. Rural market in India is a very big market and if this

market is tapped then awareness about shares can boost a lot.

Threats

Tough competition - There is a very tough competition because of large

number of companies who can provide on line Share trading.

Unawareness - Major % of population is not aware of Share market , so its

hard to convince people.

Changing scenario - Our market scenario is changing day by day i.e. our

market is fluctuating, so this makes investor hard to invest in shares


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PORTFOLIO MANAGEMENT SERVICES

(PMS)


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AN INTRODUCTION


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Reliance Money, the largest broking and distribution house in India and part of the

Reliance Anil Dhirubhai Ambani Group, forayed into Portfolio management, as part of

its expansion plans, completing the entire gamut of its financial services.

In May 2008, Reliance money launched Shariah Complaint Portfolio Management

Services starting at Rs 5 Lakhs. It was especially framed for the Muslim brethren to

plan their finances and investment effectively. The launch was announced by Mr. Sudip

Bandyopadhyay, Director & CEO of Reliance Money, at a press conference.

In July 2008, Reliance money again introduced Rs 10 Lakhs Portfolio Management

service scheme. It comprisesGrowth and value schemes in it, which gives a minimumreturn of 16% p.a.in the volatile market of June-July 2008. It is also known as Domestic

Portfolio Management service. This 16% return offer last only till 31st July, 2008.

AN OVERVIEW

As Portfolio Managers, Reliance endeavor that every portfolio created by them reflects

the values on which Reliance ADA Group has been built. A commitment towards

transparency and service. Add to that, a strong research driven investment process.

Investors personal portfolio reflects their own investment style and profile, but it

requires considerable amount of their time and efforts to manage it. Anticipating &

analysing market movements, financial statements and studying macroeconomic

variables is becoming increasingly complex. Investors may not have required time to

devote to their investments.

Under Portfolio Management Services, investors delegate the responsibility of managing

their portfolio to a team of specialists who understands their investment objectives.

Reliance team of Portfolio Managers, Research Analysts and Relationship Managers are

working continuously to create and actively manage investors portfolio to provide them

the best returns in the forever-changing market dynamics.


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Meaning o f Portfolio Management services

Portfolio Management Services (PMS) is an investment portfolio in stocks, fixed

income, debt, cash, structured products and other individual securities, managed by a

professional money manager that can potentially be tailored to meet specific investment

objectives.

When you invest in PMS, you own individual securities unlike a mutual fund investor,

who owns units of the entire fund. You have the freedom and flexibility to tailor your

portfolio to address personal preferences and financial goals. Although portfolio

managers may oversee hundreds of portfolios, your account may be unique.

Investment Management Solutions in PMS can be provided in the following ways:

Discretionary

Non Discretionary

Advisory

Discretionary: Under these services, the choice as well as the timings of the investment

decisions rest solely with the Portfolio Manager.

Non Discretionary: Under these services, the portfolio manager only suggests the

investment ideas. The choice as well as the timings of the investment decisions rest

solely with the Investor.

However the execution of trade is done by the portfolio manager.

Advisory: Under these services, the portfolio manager only suggests the investment

ideas.

The choice as well as the execution of the investment decisions rest solely with the

Investor.


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Partnership Firms

Societies

Opening of the PMS account

At the time of opening the PMS account the cutomer has to pay the required amount in

cash. But apart from cash, the client can also hand over an existing portfolio of stocks,

bonds or mutual funds to a PMS that could be revamped to suit his profile.However the

portfolio manager may at his own sole discretion sell the said existing securities in

favour of fresh investments.

Mode of payment for the charges incurred - Cash will be deducted from the customers

funds on monthly basis for Fixed fee and annually for Performance based fee.

Tax liability for the PMS investor

The portfolio manager is a trustee acting in a fiduciary capacity on behalf of the investor.

Therefore, the tax liability for a PMS investor would remain the same as if the investor is

accessing the capital market directly. However the investor should consult his tax advisor

for the same. The portfolio manager ideally provides audited statement of accounts at the

end of the financial year to aid the investor in assessing his/ her tax liabilities.

When Investor has special requests


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PMS allow investors to impose reasonable stock, sector, or other preferences and

restrictions on the management of their accounts. For example, if the investor owns his

employer's stock in investment, the investor and the Financial Advisor may decide not to

invest additional assets in the company.

Input by investor in the stocks which was chosen for his portfolio

The Investor and the Financial Advisor will want to have an initial consultation to

discuss specific objectives, risk tolerance, time horizon, and goals. Depending on the

PMS account chosen, the investor may have the ability to impose reasonable investment

restrictions on the management of his account. Some PMSs offer more flexibility than

others, usually based on the amount invested.


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Risks associated with PMS investments

All investments involve a certain amount of risk, including the possible erosion of the

principal amount invested, which varies depending on the security selected. For example,

investments in small and mid-sized companies tend to involve more risk than

investments in larger companies

Safety of Investors securities under Porifolio management services

With a view to create transparency in reporting standards of portfolio management arena,

we have appointed Deutsche Bank for custody banking and settlement functions of all

our Portfolio Management Services.


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Benefits of PMS

Professional Management - The service provides professional management

of portfolios with the objective of delivering consistent long-term performance

while controlling risk.

Continuous Monitoring - It is important to recognize that portfolios need to be

constantly monitored and periodic changes made to optimise the results.

Risk Control - A research team responsible for establishing the client's

investment strategy and providing the PMS provider real time information to

support it backs any firm's portfolio managers.


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Hassle Free Operation - Portfolio Management Service provider gives the client

a customised service. The company takes care of all the administrative aspects of

the client's portfolio with a periodic reporting (usually daily) on the overall status

of the portfolio and performance.

Flexibility - The Portfolio Manager has fair amount of flexibility in terms of

holding cash (can go up to 100% also depending on the market conditions). He

can create a reasonable concentration in the investor portfolios by investing

disproportionate amounts in favour of compelling opportunities.

Transparency - PMS provide comprehensive communications and performance

reporting. Investors will get regular statements and updates from the firm. Web-

enabled access will ensure that client is just a click away from all information

relating to his investment. Your account statements will give you a complete

picture of which individual securities you hold, as well as the number of shares

you own. It will also usually provide:

the current value of the securities you own;

the cost basis of each security;

details of account activity (such as purchases, sales and dividends paid out or

reinvested);

your portfolio's asset allocation;

your portfolio's performance in comparison to a benchmark;

market commentary from your Portfolio Manager

Customised Advice - PMS give select clients the benefit of tailor madeinvestment advice designed to achieve his financial objectives. It can be structured

to automatically exclude investments you may own in another account or

investments you would prefer not to own. For example, if you are a long-term

employee in a company and you have acquired concentrated stock positions over

the years and have become over exposed too little companys stock, a separately


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managed account provides you with the ability to exclude that stock from your

portfolio.

Personalised Approach - Some Portfolio Managers may provide a personalinvestment management service to achieve the client's investment objective. In

PMS, you may gain direct personalised access to the professional money

managers who actively manage your portfolio. This interaction may come in

various different ways including in-person meetings, conference calls, written

commentary, etc with the fund management team.

Expectation s from PMS

When one has entrusted his money to a PMS, one can expect:

Handholding from his portfolio manager than he has been accustomed to from his

mutual fund.

One can expect to have a relationship manager/ financial advisor through whom

he can interact with the fund manager at any time of his choice.

One can also expect frequent (maybe monthly) interaction with the portfolio

manager to discuss any concerns that he might have. To be updated on any major

changes in asset allocation or in the investment strategy relating to his portfolio.

All administrative matters, including operating a bank account and dealing with

settlement and depository transactions, will be handled by the PMS.

On handing over one's money, he will receive a user-ID and password from the

PMS, which will grant him online access to his portfolio details. He can use these

to check back on his portfolio as often as he likes.

Keeping track of capital gains (and losses) for the taxman can be a depressing

chore, when one has furiously churned his investments through the year. Opting

for PMS will free him of this chore, as a detailed statement of the transactions on

his portfolio for tax purposes comes as a part of the package.


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Portfolio Management Services and Mutual Fund s : The Differences

Features PMS Mutual Fund

Management Provide ongoing, personalized access

to professional money management

services

Provide access to

professional money

management services

Customization Portfolio can be tailored to address

each investor's specific needs

Portfolio structured to meet

the fund's stated investment

objectives

Management Provide ongoing, personalized access

to professional money management

services

Provide access to

professional money

management services

Ownership Investors directly own the individual

securities in their portfolio, allowing

for tax management flexibility

Shareholders own shares of

the fund and cannot influence

buy and sell decisions or

control their exposure to

incurring tax liabilities

Liquidity Although managers may hold cash,

they are not required to hold cash to

meet redemptions

Mutual funds generally hold

some cash to meet

redemptions

Minimums Significantly higher minimum

investments than mutual funds.

Generally, minimum ranges from:

Rs. 1 Crore + for Equity Options

Rs. 5 Crore + for Fixed Income

Options

Rs. 20 Lacs + for Structured Products

Provide ongoing,

personalized access to

professional money

management services


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Flexibility Generally more flexible than mutual

funds. The Portfolio Manager may

move to 100% cash if required.

The Portfolio Manager may take his

own time in building up the portfolio.The Portfolio Manager can also

manage a portfolio with

disproportionate allocation to select

compelling opportunities

Comparatively less flexible

The Role of the Financial Advisor

The Financial Advisor should guide the investor through an ongoing consulting process

designed to lead him towards his investing goals and keep his investment strategy on

track.

This process may include the following:

Setting Goals and Guidelines: The investor along with the Financial Advisor canwork together to identify his financial goals and expectations, which can be

translated into a long-term investment plan.

Determining Asset Allocation: Based on the investor objectives, the Financial

Advisor may suggest an asset allocation divided among stocks, fixed income,

debt, cash, structured products and other investments and also determine which

investment vehicles are most appropriate for the investor. Having a mix of broad

asset categories is an important factor in achieving the investor's investment

objectives.

Selecting Investment Managers and Investment Vehicles: After determining

asset allocation, the Financial Advisor may recommend specific portfolio

managers who manage assets in a particular style, such as large cap growth, for


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example. The Financial Advisor's choice of managers is generally based on the

manager's investment style and performance history, the professional relationship

he or she has developed with the manager and the manager's firm, and a number

of other criteria.

Managing and Monitoring Investor Accounts: Investors may receive periodic

statements detailing their account's holdings and performance. The Financial

Advisor may want to meet with the investor to explain the information in these

statements and evaluate the performance in light of his goals. If a change is

needed, the Financial Advisor can recommend adjustments to help meet investor

objectives.

Ongoing Personal Service: PMS Service may include ongoing communication

and frequent contact from the Financial Advisor, in addition to periodic reviews.

Also the Financial Advisor may help you put investment performance in the

proper perspective, and help you decide whether it may be appropriate to:

modify your expectations to reflect a changing market;

adjust your risk considerations; or

Reallocate the assets in your portfolio.

Customized solutions

At Reliance - PMS believe in delivering more than what the customer expects,

customized solutions are just a step towards it.

Customized solutions are investments specially created to meet needs that cannot be met

from the standardized financial instruments available in the market.

Customized solutions capture the characteristics of traditional and non-traditional

investments with financial instruments. The strategic combination of these components

provides control and flexibility to address those investors whose investment objective is

not met through traditional investments available.


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Client engagement

At Reliance - PMS seek high service standards through a full fledged service desk for

addressing client and investment related queries and providing sound resolution with an

endeavor to achieve complete customer satisfaction.

Although in Reliances ongoing post sales activity, the company attempt to build and

maintain customer confidence by keeping their investors abreast of the latest updates on

the growth of their investment...

For achieving this company share a number of reports with their customers like:

Portfolio Performance Report

Performance Appraisal Report

Accounting Transaction Report


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Investment Strategy

Reliance follows a robust and disciplined investment process and endeavor to

generate absolute returns consistently over a long term.

Reliance believes in active management of portfolios to generate superior returns

and regular review of portfolios help in better risk measurement to ensure

consistent performance.

An efficient asset allocation with flexibility to apportion 100% cash and use thecash to grab market opportunities when they arise.

Reliance research team has the capability to value the companies on the basis of

their current and expected future potential which helps in generating better &

consistent returns.

Invest in relatively concentrated portfolio of not more than 15 20 stocks, whichtheir researches believe to be excellent picks.


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TYPES OF PMS OFFERED BY RELIANCE MONEY

1. Shariah Complaint Portfolio Management Services.

2. Domestic Portfolio Management Services under:

Growth Scheme

Value Scheme

SHARIAH COMPLIANT PORTFOLIO

MANAGEMENT SERVICES


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Islamic Fund Industry Overview

The modern Islamic fund management industry was born in the 1970s, when a new class

of Arab investors, rich from oil profits and celebrating the 15th century of the Islamic

calendar (Hijra) in 1976, sought a culturally-aware alternative to the "profit at all costs"mentality of western investing, particularly in interest-dealings. The industry has been

growing ever since: Islamic banking is active in 75 countries and is growing at 15%

globally, with an estimated $1 trillion waiting to be managed.

Today, there are over 250 Islamic financial institutions with assets around $230 billion.

However, the vast wealth of Islamic funds under management is not well-diversified;

Saudi Arabia controls 70% of all assets under management. The primary fundmanagement companies that cater to these investors are Citibank (Saudi American

Bank), HSBC (Saudi British Bank/Al Amanah), Al Rahji and Al Ahli. Outside the

Muslim world, London is the world's hub of Islamic banking activity; however, its banks

offer few retail products to the Muslim community.

In Southeast Asia, Malaysia is the aggressive force, holding 9% of Muslim finances.

Reciprocally, Islamic banking comprises 10% of Malaysian finances. With a dominantforce like Saudi Arabia in the mix, Malaysia's goal of being the number one player in the

Islamic fund industry remains a daunting challenge. However, with industry

liberalisation following the 9-11 attacks, its efforts to woo rich Saudis have given it a

decisive regional advantage.


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The Shariah Law

Islam forbids paying and receiving of interest, and involvement in companies having

high degree of impure interest income, high debt or those involved in banking, life

insurance, alcohol, tobacco, gambling, Non-Halal meat or vulgar entertainment.

The basic industries which are prohibited for Islamic investments are as follows:

production and sales of alcohol,

production and sales of tobacco,

production and sales of vulgar entertainment

lending and borrowing on interest (banks and finance companies)

some financial parameters required for Shariah compliance like Debt-equity ratio

to market cap must be less than 0.33:1 and receivables to market cap must be less

than 0.45:1


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Key financing methods for Shariah investment

Ijarah: An Islamic lease agreement. Instead of lending money and earning

interest, Ijarah allows the bank to earn profits by charging rentals on the asset

leased to the customer.


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Murabahah: Purchase and resale. Instead of lending money, the capital provider

purchases the desired commodity (for which the loan would have been taken out)

from a third party and resells it at a predetermined higher price to the capital user.

By paying this higher price over installments, the capital user has effectivelyobtained credit without paying interest.

Sukuk: Similar to a conventional bond, but asset backed, a sukuk represents

proportionate beneficial ownership in the underlying asset. The asset will be

leased to the client to yield the return on the investment.

Musharakah: Profit and loss sharing. It is a partnership where profits are shared

according to an agreed ratio, whereas the losses are shared in proportion to the

capital/investment of each partner.

In a musharakah, all partners to a business undertaking contribute funds and have

the right, but not the obligation, to exercise executive powers in that project,

similar to a conventional partnership structure and the holding of voting stock in alimited company. This equity financing arrangement is widely regarded as the

purest form of Islamic financing.

Mudarabah: An investment partnership, whereby the investor (the rab-ul-mal)

provides capital to another party/ entrepreneur (the mudarib) in order to undertake

a business/investment activity. While profits are shared on a pre-agreed ratio, loss

of investment is born by the investor only.

The mudarib loses its share of the expected income. A mudarabah is essentially

similar to a diversified pool of assets held in a discretionary asset management

portfolio.


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Basic Non-Compliant Industries


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What is Reliance Securities offering.....


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....the first Shariah compliant equity portfolio management scheme for the investors.

Reliance is targeting the investors who are currently keeping their money idle in cash due

to unavailability of investment options which are Shariah compliant.

Resident Indians as well as NRI/PIOs can participate in the said scheme.


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How would the Compliance be ensured..


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Parsoli Corporation would certify all the investments as per the Shariah compliance

through their existing Shariah Board.

There would be quarterly review of all the instruments to ensure that they are Shariah

compliant


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Scheme: Shariah Growth

A Moderate scheme with growth approach and investments predominantly in large-cap

stocks. The objective is to ensure liquidity and lower impact cost leading to the

construction of a relatively more stable portfolio. The portfolio management process will

also focus on using cash as an investment tool.


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Investment Objective - Generate capital appreciation in medium to long term

through investments in equities and equity related instruments comprisingpredominantly large cap companies that conform to Shariah investment principles.

This scheme will be benchmarked to the BSE 200.

Investment Strategy - The portfolio will have 15-20 high quality stocks and

overweight on large Cap stocks. However select mid cap stocks may also be

considered for investment. The portfolio strives to insulate an investor from

cyclical themes by investing in sectors offering secular growth outlook.

Parameters Driving Investment Decision - The portfolio strives at all times to

achieve an overall 70% allocation to large cap companies. Again the portfolio will

limit the exposure to any sector to be less than 25% of the portfolio size and to

any scrip to be less than 10%.

No Lock-in Period, No Exit Load

Maximise post tax returns by concentrating on long-term gains & lowchurning of portfolio

Fixed and Performance based fee structure

Custody & Fund Accounting to be done by Deutsche Bank


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Pricing Features

Note: Custody, Service tax, Security transaction Tax & Other Statutory levies at actuals

as applicable

Expected returns - Reliance Money offers various schemes to suit individual

investment objectives.As per regulations governing Portfolio Management

Services in India, neither capital nor returns can be guaranteed. We shall endeavor

to outperform the benchmark indices like Nifty but there can be no guarantee or

certainty of the same. We believe, over long term, equities' performance will track

corporate performance.We expect India's GDP to grow at 7-8% p.a. in real terms;

or 12-13% p.a. in nominal terms. Therefore historical trends indicate that well

managed portfolios in Indian equities should give minimum 20-25% p.a. returns.


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Investor Touch Points

Reports Customer web access wherein the following reports can be viewed

Portfolio Performance Statements.

Asset Allocation Statements.

Trade Transaction Statements.

Statement of Financial Position.

Courier News letters informing customers about fund managers portfolio

strategy and the equity market outlook. Thiswill also include

International & Indian Market trends.

CA certified statement of investments ( Annual)


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DOMESTIC MANAGEMENT SERVICES


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GROWTH SCHEME

A Moderate fund with growth approach and investments predominantly in large-cap

stocks. The objective is to ensure liquidity and lower impact cost leading to the

construction of a relatively more stable portfolio. The portfolio management process will

also focus on using cash as an investment tool and derivatives for protection of portfolio.

Investment Objective

Generate capital appreciation in medium to long term through investments in equities

and equity related instruments comprising predominantly large cap companies. This

scheme will be benchmarked to the Nifty 50 stocks.


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Investment Strategy

The portfolio will have 18-20 high quality stocks and overweight on large Cap stocks.

However select mid cap stocks may also be considered for investment. The portfolio

strives to insulate an investor from cyclical themes by investing in sectors offering

secular growth outlook.

Parameters Driving Investment Decision

The portfolio strives at all times to achieve an overall 70% allocation to large cap

companies. Again the portfolio will limit the exposure to any sector to be less than 25%

of the portfolio size and to any scrip to be less than 10%.

No Lock-in Period, No Exit Load

Maximise post tax returns by concentrating on long-term gains & low churning of

portfolio

Fixed and Performance based fee structure

Funds managed on a Pool basis

Custody & Fund Accounting to be done by Deutsche Bank

Pricing Features


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as applicable


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VALUE SCHEME

A highly flexible investment option, which offers a diversified investment portfolio

across both large-cap and mid-cap stocks. This option follows a moderately aggressive

approach to portfolio construction. The portfolio management process will also focus on

using cash as an investment tool and derivatives for protection of portfolio.

Investment Objective

The objective of this scheme is wealth creation by delivering superior returns over long

term (18 months) through investments in value & growth stocks. This will be

benchmarked with BSE 200. .

Investment Strategy

The portfolio will have 18-20 high quality stocks and overweight on Mid-Cap stocks.

The investments will be made for a medium to long term horizon. Early identification of


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as applicable

Investor Touch Points

Emails - Performance Statement ( Monthly Basis)

- Portfolio & Transaction Statement ( Quarterly)

Courier Newsletters informs customers about fund manager portfolio

strategy and the equity market outlook. This also

include

International & Indian Market trends.


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-CA certified statement of investments ( Annual)

RESEARCH METHODOLOGY


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TITLE: In the testing times of the market - PMS as an investment avenue.

TITLE JUSTIFICATION:

The title given to me for research was very interesting and learning in nature. In present

scenario, environment is changing very fast and the market is floating with various new

schemes and financial products. In order to be on the top Reliance has always introduced

something new in the market. This time it is has launched Portfolio Management

Services (PMS) schemes, which was a challenge for the organisation as it is an emerging

concept. Through my research and findings i helped the organisation in launching the

product in the market.

OBJECTIVE :

To determine customers perception towards Portfolio Management Services.

To study the types of benefits provided by Portfolio Management Services.

To provide the company information regarding PMS.

To find out the awareness level of investors towards PMS.

Analyze the factors that influence the investment decision.

Aware more to the investors to invest in PMS rather than in other investment

options like MFs, bank a\c FDs etc.

Objective of the study to help company to improve its positioning in the market

& launch PMS.


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SCOPE OF THE STUDY

A big boom has been witnessed in Portfolio Management Services in recent times. Alarge number of new players are entering intothe market and are vying to gain market

share in this rapidly improving market. The study deals with Reliance in focus and the

various segments that it caters to. The study then goes on to evaluate and analyse the

findings so as to present a clear picture of trends in the Portfolio Management Services.

SIGNIFICANCE OF THE STUDY

Significance to the company -This is a limited study which takes into

consideration the responses of 100 people. This data can be explorated to take in

the trends across the market. The significance for the company lies in studying

these trends that emerge from the study. It is a rapiddly changing and evolving

sector. People are only beginning to wake up to its vast possibilities. A study like

this can attempt to guide the future of the company based on current trends.

Significance to the researcher - During the study, through practical experience

researcher found that Portfolio Management Services is really a new tide in the

investment sea. If a investor doesnt know about the share market than also he can

easily invest in this through portfolio manager. PMS gives customized advise,

hassle free operation, flexibility, risk control and transparency etc which makes

much easier for investors to invest. Portfolio Management Services are in the

growing stage and it is a great investment avenue. Therefore, it was a great

learning experience for the researcher to work on this project.


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DATA COLLECTION METHOD

Data source: Primary and secondary data

Primary data: personal meeting, questionnaire and tally calling.

Secondary data: magazines, journals and annual report

RESEARCH DESIGN

NON-PROBABILITY EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources

of information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were conducted to

collect the customers perception and interest towards PMS, through this questionnaire.

SAMPLING METHODOLOGY


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SamplingTechnique - Initially, a rough draft was prepared keeping in mind the

objective of the research. A pilot study was done in order to know the accuracy of

the Questionnaire. The final Questionnaire was arrived only after certain

important changes were done. Thus my sampling came out to be judemental andconvinent

Sampling Unit - The respondants who were asked to fill out questionnaires are

the sampling units. These comprise of employees of MNCs, Govt. Employees,

Self Employed, Businessmen etc.

Sample size - The sample size was restricted to only 100, which comprised ofmainly peoples from different regions of Ajmer due to time constraints.

Sampling Area - The area of the research was Ajmer (Raj), India.


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LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Ajmer and does not necessarily shows a

pattern applicable to all of Country.

2. Some respondents were reluctant to divulge personal information which can affect the

validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can change very

quickly. The environmental changes are vital to be considered in order to assimilate the

findings.


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DATA ANALYSIS AND

INTERPRETATION

A.Personal information


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1. Occupation wise representation.

Table 1.1

Occupation No: of Respondents Share (%)

Businessman 52 52Service 27 27Others 21 21

Chart 1.2

Interpretation


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52% of the respondents in ajmer are basically businessman whereas 27% of them are

from the seavice class.

2. Categorization on the basis of religion

Table 2.1

Categories No: of Respondents Share (%)

Hinduism 41 41

Islam 32 32

Christianity 9 9

Others 18 18

Chart 2.2


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Interpretation

Ajmer has a cosmopolitain soceity.

41% and 32% of the respondents are hindus and muslims respectively whereas

9% are christians and 18% of the respondents are from other communities like

Jains and Parsies etc.

3. Data Representation according to age-group.

Table 3.1


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Age-group No: of respondents Share (%)

Under 34 19 1935 44 41 4145 54 34 34

55 and above 6 6

Chart 3.2

Interpretation

Data showing that maximum 41% of the respondents are of 35-44 age group.

Whereas 34% and 19% of the respondents comes under 45-54 and under 34 age-

group respectively.


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Interpretation

According to above pie-chart more persons are having yearly income of 5 lakhs &

above.

5. Data showing investment objective

Table 5.1

Investment objective No: of

Respondents

Share (%)

Perserving capital 21 21

Providing additional income 28 28

Providing a combination of income and capital

growth

51 51

Chart 5.2


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Interpretation

According to the above pie-chart maximum 51% of the respondents are having only one

investment objective i.e.providing a combination of income and capital growth.

B. Risk tolerance

6. Data showing willingness to take financial risk


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Table 6.1

Level of financial risk No: of Respondents Share (%)

Low risk taker 20 22

Average risk taker 40 45High risk taker 20 22Very high risk taker 10 11

Chart 6.2

Interpretation

According to above chart 45% of the people are average risk taker.

Whereas 22% of the respondents are both low and high risk takers and only 11%

are very high risk takers.


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7. Data showing feelings of respondents, after they make a financial decision

Table 7.1

Feelings after making financial decisions No: of Respondents Share(%)

Pessimistic 17 17

Somewhat pessimistic 26 26optimistic 15 15Somewhat optimisic 42 42

Chart 7.2


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Interpretation

Only 42% of the people are somewhat optimistic after they make a financial

decision.

Whereas 26% and 17% of the respondents are somewhat pessimistic and

pessimistic respectively. That means, maximum investors are not confident about

the decisions which they make.

C. Investment Experience

8. Data showing investment experience

Table 8.1

Type of investment No: of Respondents Share (%)

Bonds/Fixed income/Bond Mutual fund 60 42.86Equity and/or Equity Mutual funds 50 35.71Derivatives 20 14.28Offshore investments 10 7.14

Chart 8.2


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Interpretation

According to the above chart maximum 43% of the respondents have invested in

Bonds/ Fixed income/Bond Mutual fund.

Whereas only 36% have invested in equity and/or equity Mutual funds

D. Income Source

9. Description of expected future income over next 5 years


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Table 9.1

Expected future income No: of Respondents Share (%)

I expect my income to increase 52 52I expect my income to remain steady 40 40I expect my income to decrease 8 8

Chart 9.2

Interpretation

According to the above table and chart, 53% of the people believe that their

expected future income over next five years will increase.


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Whereas 40% believes that in future their income will remain steady.

E. Ease of Management.

10. Data showing ease of management

Statement - I want to play an active role in managing my investment

Table 10.1


Disagree 9 9

Neutral 54 54

Agree 26 26

Strongly Agree 11 11

Chart 10.2


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Interpretation

According to the above chart, 54% of the people are neutral to the statement I want to

play an active role in managing my investment. This means, that they need an outside

assistance also in making their investment decisions.

F. Miscellaneous

11. Data showing, "Who manages your portfolio?

Table 11.1


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Categories No: of Respondents Share (%)Myself 40 40Relatives 27 27Financial Advisor 22 22Fund Manager 6 6

Others 5 5

Chart 11.2

Interpretation

40% of the respondents manages their portfolio themselves whereas 27% and

22% takes the help of their relatives and financial advisor respectively.

Only 6% of the people takes the help of the fund manager in managing their

porfolio.


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12. Data showing the no: of respondents who need a fund manager.

Table 12.1 - Do you need a Fund Manager?


Yes 46 46

No 9 9

Can't say 45 45

Chart 12.2


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Interpretation

According to the above chart, 46% of the people needs a fund manager whereas

45% are still confused that whether a fund manager is beneficial or not.

13. Data showing the awareness level of the respondents towards PMS.

Table 13.1 - Are you aware about portfolio Management Services?


Yes 22 22No 41 41Confused 37 37

Chart 13.2


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Interpretation

According to the above chart, 41% of the people doesnt have any knowledege

about PMS.

Whereas 37% are confused and only 22% of the respondents know about PMS.

14. Data showing respondents interest in Shariah Compliant investments


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Table 14.1 - Are you interested in Shariah Compliant Investments?


Yes 53 53No 12 12Can't say 35 35

Chart 14.2

Interpretation

According to the above chart, 53% of the respondents are interested in Shariah

Complaint investment.


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Interpretation

According to the ranking done by the respondent, the researcher came to know

that the perception of the respondents about PMS is mixed.

26% of the respondents believe that PMS has hassle free operation and it provides

professional help through proper management.

Whereas, 23%,13% and 10% of them believe that the other benefits are focused

portfolio, flexibility and transparency respectively.

The other 2% of the respondents has given other benefits like risk monitoring and

customised advise.

FACTS/FINDINGS


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As the people think that PMS provides professional assistance, transparency,

flexibility and diversification etc to their portfolio. They are very much interestedin it but since the starting amount is very high, so the investors are quite scared by

the consequences of the volatile market.

As seen from the survey that at present 53% of the customer are interested in

Shariah Complaint investments and 41% of the people are not aware about PMS.

So, it can be a good potential for the company and they should make an attempt to

trap these customers by proper awareness and marketing.

In Ajmer, maximum population is from business class. They invest their money in

their own business and real estate for further growth. In todays market which is

very volatile, these rich businessmen are very much scared of the consequences.

Now-a-days, markets are dynamic in nature and is changing very fast. Portfolio

Management services by Reliance Money is a new tide in the investment sea.

Investors need professional help which should be hassle-free, transparent etc and

which provides maximum return to them.

As seen from the survey 51% of the investors objective is providing a

combination of income and capital growth. So, PMS can help them in achieving

their objectives.

Shairah complaint PMS is extremly appreciated by muslims and it is also

welcomed by the other communities. But since the starting amount is very high

(Rs 5 lakhs) investors will not invest in it as the market is very volatile. A good

scheme and awareness can only motivate them towards investment in PMS.


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CONCLUSION

Our exhaustive research in the field of Portfolio Management Services threw up

some intresting trends which can be seen in the above analysis. A general

impression that we gathered during Data collection was the little awareness and

knowledge among people about PMS

People in general are impressed by the Shairah Complaint PMS and they also

want to know more about it.

From the analysis of the responses received from the investors of AJMER city, a

majority of investors are found to be conscious and enlightened regarding their

investments, returns & growth.


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We have a very good market in AJMER which comprises potential investors. But

there is lack of information about Reliance Moneys Portfolio Management

Services.

Therefore, Reliance Money should make little more efforts to trap the potential

investors by media advertisements, paper advertisements, seminars & business

meets & building a good relationship with potential customers.


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QUESTIONNAIRE

A. Personal Information

1 . O cc up at io n

B u s i n e s s m e n S e r v i c e O t h e r s

2 . F r o m w h i c h r e l i g i o n d o y o u b e l o n g ?

H i n d u i s m

I s l a m

C h r i s t i a n i t y

O t h e r s _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ ( S p e c i fy )

3 . P l e a s e s e l e c t t h e r a n g e o f y o u r a g e .

U n d e r 3 4 3 5 - 4 4 4 5 - 5 4 5 5 a n d a b o v e

4 . W h a t i s y o u r y e a r l y I n c o m e ?


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B e l o w R s 5 0 0 0 0 R s 5 0 0 0 0 t o 1 L a k h

1 - 5 L a k h s 5 L a k h s & a b o v e

5 . W h i c h o f t h e f o l l o w i n g w o u l d b e y o u r i n v e s t m e n t

O b j e c t i v e ?

P e r s e r v i n g c a p i t a l .

P r o v i d i n g a d d i t i o n a l i n c o m e .

P r o v i d i n g a c o m b i n a t i o n o f i n c o m e a n d c a p i t a l g r o w t h .

B . R i s k t o l e r a n c e

6 . C o m p a r e d t o o t h e r s , h o w d o y o u r a t e y o u r w i l l i n g n e s s t o

t a k e f i n a n c i a l r i s k ?

L o w r i s k t a k e r

Av e r a g e r i s k t a k e r

H i g h r i s k t a k e r

Ve r y h i g h r i s k t a k e r

7 . H o w d o y o u u s u a l l y f e e l a b o u t y o u r f i n a n c i a l d e c i s i o n s

a f t e r y o u m a k e t h e m ?

P e s s i m i s t i c

S o m e w h a t p e s s i m i s t i c

O p t i m i s t i c

S o m e w h a t o p t i m i s t i c


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C . I n v e s t m e n t E x p e r i e n c e

8 . Yo u r i n v e s t m e n t e x p e r i e n c e . P l e a s e t i c k a l l t h a t a r e

a p p l i c a b l e .

B o n d s / F i x e d i n c o m e / B o n d M u t u a l F u n d s .

E q u i t y a n d / o r E q u i t y M u t u a l F u n d s .

D e r i v a t i v e s .

O f f s h o r e i n v e s t m e n t s .

D . I n c o m e S o u r c e

9 . H o w w i l l y o u d e s c r i b e y o u r e x p e c t e d f u t u r e i n c o m e o v e r

n e x t 5 y e a r s

I e x p e c t m y i n c o m e t o i n c r e a s e .

I e x p e c t m y i n c o m e t o r e m a i n s t e a d y .

I e x p e c t m y i n c o m e t o d e c r e a s e .

E . E a s e o f M a n a g e m e n t .

1 0 . I w a n t y o p l a y a n a c t i v e r o l e i n m a n a g i n g m y i n v e s t m e n t .

D i s a g r e e

N e u t r a l

A g r e e

S t r o n g l y A g r e e

F . M i s c e l l a n e o u s

1 1 . W h o m a n a g e s y o u r p o r t f o l i o ?

M y s e l f


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R e l a t i v e s

F i n a n c i a l A d v i s o r

F u n d M a n a g e r

O t h e r s _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ ( I f A n y )

1 2 . D o y o u n e e d a F u n d M a n a g e r ?

Ye s N o C a n t s a y

1 3 . A r e y o u a w a r e a b o u t p o r t f o l i o M a n a g e m e n t S e r v i c e s ?

Ye s N o C o n f u s e d

1 4 . A r e y o u i n t e r e s t e d i n S h a r i a h C o m p l i a n t I n v e s t m e n t s ?

Ye s N o C a n t S a y

1 5 . W h a t d o y o u t h i n k a r e t h e b e n e f i t s o f P M S ? ( R a n k t h e m )

F l e x i b i l i t y

F o c u s e d P o r t f o l i o

P r o f e s s i o n a l M a n a g e m e n t

T r a n s p a r e n c y

H a s s l e f r e e o p e r a t i o n

A n y o t h e r _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ ( S p e c i fy )

T H A N K Y O U


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N a m e _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

A d d r e s s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

P h o n e N o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

BIBLIOGRAPHY

1. NEWSPAPERS/MAGAZINES REFFERED: Business world

The Economic Times

Money Outlook

Reliance Money Fact Sheet

Fund Statements

2. WEBSITES REFFERED: www.reliancecapital.com

www.reliancemoney.com

www.nseindia.com

www.bseindia.com
http://www.reliancecapital.com/http://www.reliancemoney.com/http://www.nseindia.com/http://www.bseindia.com/http://www.reliancemoney.com/http://www.nseindia.com/http://www.bseindia.com/http://www.reliancecapital.com/


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3. BOOKS REFFERED:

Research Methodology, Author- C.R.Kothari Securities Analysis and Portfolio Management- Pretti Sinha

Statistical Method, Author- S.P.Gupta

Documents

sana MY PMS