CUSTOMER SATISFACTION TOWARDS RELIANCE MUTUAL FUNDS

Customer satisfaction towards Reliance Mutual Fund 2016

EXECUTIVE SUMMARY

TITLE OF PROJECT:

“A STUDY ON CUSTOMER SATISFACTION TOWARDS RELIANCE

MUTUAL FUND (RMF) BANGALORE BRANCH”

STATEMENT OF THE PROBLEM:

The number of studies conducted to understand the customer satisfaction

towards Reliance Mutual Funds remains elusive and the throat cut competition

facing by the company is the major reason to study customer satisfaction

towards reliance mutual fund and also to check whether the distributors are

satisfied with the performance of reliance mutual funds (RMF).

OBJECTIVES OF THE STUDY:

The study level of satisfaction of customers towards Reliance Mutual

Fund.

To find the factors which are responsible for slow growth of mutual

funds.

To find the customer’s preference to various options available in

Reliance Mutual Fund.

To know the kind of benefit people expected from Reliance Mutual Fund.

Department of Management Studies- MSRIT Page 1


SCOPE OF THE STUDY

The study urges to know the customer satisfaction , current market trend and

performance and also to improve the existing services and to add on anything if

required the study also helps to understand risk and hence informed about

investment decisions for better performance of the company

DATA COLLECTION

There are several ways of collecting the appropriate data which differ

considering in context of money, costs , time, and other resources data can be

collected through different sources. A sample design is a definite plan for

obtaining a sample from a given population. It refers to the technique or method

the researcher would adopt in selecting items for the sample. I have used

convenience sampling method and I have taken 30 sample size.

Primary data

Primary data was collected through survey method by distributing questionnaire

to the different customers of reliance mutual funds in Bangalore branch

Secondary data

The secondary data collection includes collection of data through sources like

1. Fund facts sheets of different AMC’S that are considered for the analysis

purpose

2. From record, report, magazine and websites of RMF.



LIMITATIONS OF THE STUDY

Time constraints : due to less availability of time it may be possible that

all the related aspects May not be covered in the project

Analysis is done with the limited availability of the data

SUGGESTIONS:

There is high potential market. For mutual fund investors Bangalore city

but this market need to be explored as investors are still hesitated to

invest their money in mutual fund.

Investor has inadequate knowledge of mutual fund, so proper marketing

of various scheme is required, company should arrange more and more

seminar about mutual fund.

Company should also provide the knowledge of growth rate and

expected growth rate of mutual fund in India.

Reliance must be concentrate on the management of the company so that

every work can be done in a proper way.

Reliance must be advertising its tie up company fund along with their

features that the investors can invest in that type of fund in Reliance.

.



INDUSTRY PROFILE



INDUSTRY PROFILE

Introduction

A mutual represents a vehicle for collective investment. Till 1986, the Unit

Trust of India was the only mutual fund in India. Since then public sector banks

and insurance companies have been allowed to set up subsidiaries to undertake

mutual fund business. So, State Bank of India, Canara Bank, LIC, GIC, and few

other public sector banks entered the mutual fund industry.

In 1992, the mutual fund industry was opened to the private sector, and a

number of private sector mutual fund such as Birla Mutual Fund, DSP Merrill

Lynch Mutual Fund, Kotak Mahindra Mutual Fund, Morgan Stanley Mutual

Fund, Tata Mutual Fund, Prudential ICICI Mutual Fund, Reliance Mutual Fund,

Standard Chartered Mutual Fund, Templeton Mutual Fund, IDBI- Principal

Mutual Fund have been set up. The process of consolidation began in recent

years.

At present, there are about 30 mutual funds managing nearly 1000 schemes.

While the mutual fund industry in India has registered a healthy growth over the

last 15 years, it is still very small in relation to other intermediaries like banks

and insurance companies. Mutual funds are one of the best investments ever

created because they are very cost efficient and very easy to invest in. by

pooling money together in a mutual fund, investors can purchase stocks or

bonds with much lower trading costs than if they tried to do it on their own. But

the biggest advantage to mutual funds is diversification.

The mutual fund industry in India started in 1963 with the formation of Unit

Trust of India, at the initiative of the Government of India and Reserve Bank of



India. The history of mutual funds in India can be broadly divided into four

distinct phases

First Phase - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It

was set up by the Reserve Bank of India and functioned under the Regulatory

and administrative control of the Reserve Bank of India. In 1978 UTI was de-

linked from the RBI and the Industrial Development Bank of India (IDBI) took

over the regulatory and administrative control in place of RBI. The first scheme

launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700

crores of assets under management.

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

1987 marked the entry of non-UTI, public sector mutual funds set up by public

sector banks and Life Insurance Corporation of India (LIC) and General

Insurance Corporation of India (GIC). SBI Mutual Fund was the first non-UTI

Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec

87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund

(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC

established its mutual fund in June 1989 while GIC had set up its mutual fund

in December 1990.

At the end of 1993, the mutual fund industry had assets under management of

Rs. 47,004 crores.

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 Department of Management Studies- MSRIT Page 6


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

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI

was bifurcated into two separate entities. One is the Specified Undertaking of

the Unit Trust of India with assets under management of Rs. 29,835 crores as at

the end of January 2003, representing broadly, the assets of US 64 scheme,

assured return and certain other schemes. 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, 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 assets under management and with the setting up of a UTI

Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with

recent mergers taking place among different private sector funds, the mutual

fund industry has entered its current phase of consolidation and growth.

Structure of the Indian mutual fund industry:

The Indian mutual fund industry is dominated by the Unit Trust of India, which

has a total corpus of Rs700bn collected from more than 20 million investors.

The UTI has many funds/schemes in all categories i.e. equity, balanced, income

etc. with some being open-ended and some being closed-ended. The Unit

Scheme 1964 commonly referred to as US 64, which is a balanced fund, is the

biggest scheme with a corpus of about Rs200bn. Most of its investors believe

that the UTI is government owned and controlled, which, while legally

incorrect, is true for all practical purposes.

The second largest category of mutual funds is the ones floated by nationalized

banks. Can bank Asset Management floated by Canara Bank and SBI Funds

Management floated by the State Bank of India are the largest of these. GIC

AMC floated by General Insurance Corporation and Jeevan Bima Sahayog

AMC floated by the LIC are some of the other prominent ones.



Some of the AMCs operating currently are:

Name of the AMC Nature of

ownership

Alliance Capital Asset Management (I) Private

Limited

Private

foreign

Birla Sun Life Asset Management Company

Limited

Private Indian

Bank of Baroda Asset Management Company

Limited

Banks

Bank of India Asset Management Company

Limited

Banks

Can bank Investment Management Services

Limited

Banks

CholamandalamCazenove Asset Management

Company Limited

Private

foreign

Dundee Asset Management Company Limited Private

foreign

DSP Merrill Lynch Asset Management

Company Limited

Private

foreign

Escorts Asset Management Limited Private Indian

First India Asset Management Limited Private Indian

GIC Asset Management Company Limited Institutions

IDBI Investment Management Company

Limited

Institutions



COMPANY PROFILE



COMPANY PROFILE

Introduction

There are lot of investment avenues available today in the financial market for

an investor with the investable surplus. He can invest in bank deposits,

corporate debentures and bonds where there is low risk but low return. He may

invest in funds of the companies where the risk is high and the returns are also

proportionately high. The recent trends in the mutual fund market have shown

that an average retail investor always lost with periodic bearish tends people

began for opting for portfolio managers with expertise. In mutual fund market

would invest on their behalf. Thus we have wealth management service

provided by many institutions. However they prove to be costly for small

investors. These investor have found a good shelter with the mutual funds.

Like most developed and developing countries the mutual fund cult is catching

on in India the reason for interesting occurrence are :

Mutual funds make it easy and less costly for investors to satisfy their

need for capital growth income.

It brings the benefits of diversification and money management to the

individual investor, providing opportunity for financial success that was

once available to only to a select few.



History of Reliance Company

The Reliance group founded by Dhirubhai H. Ambani (1932-2002) is India’s

largest private sector enterprise. He is credited to have brought about equity cult

in India in the late seventies and is regarded as an icon for enterprise in India.

The Reliance group is a living testimony to his indomitable will, single minded

dedication and an unrelenting commitment to his goals.

Unit trust of India is the first mutual fund setup under the separate Act UTI

ACTin 1963 and started its operations in 1964 with the issue of schemes US-

641. In 1978 UTI was delinked from RBI and industrial development bank of

India (idbi) took over the regulatory and administrative control in place of RBI.

In the year 1987 public sector bank like state bank of India, Punjab national

bank , Indian bank , bank of India , and bank of Baroda have set up mutual

funds.

Apart from the abovementioned banks life insurance corporation (LIC) and

general Insurance Corporation too have setup mutual funds. LIC established its

mutual funds in june1989 while gic had set up its mutual funds in December

1990. The mutual fund industry had assets under management of RS 47,004

crore.

With the entry of private sector funds a new era has started in mutual funds

industry .eg. Principal mutual fund.



About Reliance mutual funds

Reliance mutual funds is one of the India’s leading mutual fund with average

asset under management of Rs. 1,12,914 crores (April 14 – June 14 quarter )

and 52.69 Lakhs folios. (30thjune 2014). Source http://www.amfiindia.com.

Reliance mutual funds is a part of reliance group is one of the fastest growing

mutual funds in India. RMF offers investors a well rounded portfolio of

products to meet varying investors requirement and has a presence in 179 cities

across the country Reliance mutual funds constantly endeavours to launch

innovative products and customer service initiatives to increase value to

investors. Reliance capital asset management limited (RCAM) is the set

manager of the reliance mutual fund. RCAM is a subsidiary of reliance capital

limited (RCL).

Presently, RCL holds Upto 65.23% of its total issued and paid up equity share

capital and the balance of its issue and paid up equity share capital is held by

other share holders which includes Nippon life insurance company (“NLI” )

holding 26% of RCAM’s total issued and paid up equity share capital . NLI

acquired the said 26% share holding in RCAM on august 17, 2012.

Reliance capital ltd 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 companies in terms of net worth. Reliance capital ltd has

interest in asset management, life and general insurance, private equity and

proprietary investments , stock broking and other financial services.


http://www.amfiindia.com./


Sponsor Reliance Capital Limited

Trustee

Reliance Capital Trustee co.

Limited

Investment manager

Reliance Capital Asset

Management Limited

Statutory details

The sponsor ,the trustee and the

investment manager are in

corporate under the companies act

1956.

Vision and mission statement

Vision statement

To be a globally respected wealth creator with an emphasis on customer care

and a culture of good corporate governance.

Mission statement

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

delighting our customers.

Corporate Governance

Reliance capital asset management limited has a vision of being a leading

player in the mutual fund business and has achieved significant success and

visibility in the market.



However an imperative part of growth and visibility is adherence to good

conduct in the market place .at Reliance Capital Asset Management limited the

implementation and observance of ethical processes and policies has helped us

in standing up to the scrutiny of our domestic and international investors.

Key product and services

The aim of growth funds is to provide capital appreciation over the medium to

long term Such schemes normally invest a major part of their corpus in equities

such funds have comparative high risks. These schemes provide different

options to the investors like dividend option capital appreciation etc and the

investors may choose an option depending on their preferences.

Some of the key products of the reliance mutual funds are as follows:-

Reliance vision fund: the primary investment objective of this scheme is to

achieve long term growth of capital by investment in equity and equity relate

securities through a research based investment approach.

Fund data type: Open ended equity growth scheme.

Date of allotment: 08-oct-1995

Inception date: 08-oct-1995

Minimum investment: Rs 1000

Net asset value as on 30th may 2014: Rs 340.53

Reliance growth fund: the primary investment objective of this scheme is to

achieve long term growth of capital by investment in equity and equity relate

securities through a research based investment approach.

Fund data type: Open ended equity growth scheme.

Date of allotment: 08-oct-1995Department of Management Studies- MSRIT Page 15


Inception date: 08-oct-1995


Net asset value as on 30th may 214:Rs 612.67

Reliance small cap fund: the primary investment objective of the scheme is to

generate long term capital appreciation by investing predominantly in equity

and equity relate instruments of small cap companies and the secondary

objectives is to generate consistent returns by investing in debt and money

market securities.

Fund data type: An open ended equity scheme.

Date of allotment: 16 Sep 2010

Inception date: 21 Sep 2010



Reliance equity opportunities fund: the primary investment objective of the

scheme is to generate long term capital appreciation and provide long term

growth opportunities by investing in a portfolio constituted of equity securities

and equity relate securities and the secondary objective is to generate consistent

returns by investing in debt and money market securities.

Fund data type: Open ended diversified equity scheme

Date of allotment: 28 march 205

Inception date: 30 march 2005

Minimum investment: 5000




Reliance regular saving fund - debt option: the primary investment objective

is to generate optimal returns consistent with moderate level of risk. The

income may be complemented by capital appreciation of the portfolio.

Accordingly investments shall predominantly be made in debt and money

market instruments.

Fund data type: open ended scheme

Date of allotment: 08 June 2005

Inception date: 09 June 2005


Net asset value as on 30th may 2014: Rs 17.49.

Reliance mutual funds in Bangalore have three functional units, they are

follows:

Financial functional unit

Marketing functional unit.

Operational functional unit.



ORGANISATIONAL HIERARCHY

Reliance follows the functional structure where the company is divided

into segments/separate units based on the functions or roles such as human

resource, sales and distribution, and operations. All the similar actives of

the company are put into different departments and each of the



departments is headed by the department head and these departmental

heads have authority chief directly in case of any failure or loss.

The functional structure offers a number of potential advantage as well as

disadvantages.

Advantages:-

Specializations / favourable impact on employees:

An advantage of a functional organisational structure is that it offers

a high level of specialization. Each unit operates as a type of self-

contained mini-company, changed with carrying out its specific role.

Employees typically start their careers in an entry-level position

within the function and develop specialized knowledge as they move

up within the hierarchy. They become experts within their functional

area, and the unit and company benefit from their expertise and

experience over time.

Efficiency and productivity / favourable impact on employees:

A worker who is an expert in his functional area can perform tasks

with a high level of speed and efficiency, which enhances

productivity. Workers who know their jobs well can proceed with

confidence and with a minimum amount of mistakes. Because the

career paths within the functional unit are clear, the employees may

be highly motivated to advance their careers by reaching the next

rung on the ladder, which may also make them more productive.

Disadvantages:-

Lack of teamwork:

While specialized units within the functional structure often perform

with a high level of efficiency, they may have different working



well with others units. If a project calls for several units to work

together, units may become territorial and unwilling to cooperate

with each other. In essence, each unit may act in what it perceives to

be its own best interest instead of those of the organisation as a

whole. Infighting may cause projects to fall behind schedule.

Difficult management control:

Another potential disadvantage of the functional organisation

structure is that it can pose a challenge for top management to

maintain control as the organisation expands. As organisations get

larger and top management needs to delegate more decision making

responsibilities each functional area, the degree of autonomy may

also increase, making coordination of activities more difficult.



ORGANIZATIONAL STRUCTURE



PRODUCT PROFILE



PRODUCT PROFILE

A. Equity Schemes:-

a. Reliance Equity Fund:

(An open-ended diversified Equity Scheme) The primary investment objective

of the scheme is to seek to generate capital appreciation & provide long-term

growth opportunities by investing in a portfolio constituted of equity & equity

related securities of top 100 companies by market capitalization & of

companies which are available in the derivatives segment from time to time and

the secondary objective is to generate consistent returns by investing in debt

and money market securities.

b. Reliance Tax Saver (ELSS) Fund:

(An Open-ended Equity Linked Savings Scheme.) The primary objective of the

scheme is to generate long-term capital appreciation from a portfolio that is

invested predominantly in equity and equity related instruments.

c. Reliance Equity Opportunities Fund:

(An Open-Ended Diversified Equity Scheme) The primary investment objective

of the scheme is to seek to generate capital appreciation & provide long-term

growth opportunities by investing in a portfolio constituted of equity securities

& equity related securities and the secondary objective is to generate consistent

returns by investing in debt and money market securities.



d. Reliance Vision Fund:

(An Open-ended Equity Growth Scheme.) The primary investment objective of

the Scheme is to achieve long term growth of capital by investment in equity

and equity related securities through a research based investment approach.

e. Reliance Growth Fund:

(An Open-ended Equity Growth Scheme.) The primary investment objective of

the Scheme is to achieve long term growth of capital by investment in equity

and equity related securities through a research based investment approach.

f. Reliance Index Fund:

(An Open Ended Index Linked Scheme.) The Investment Objective under the

Nifty Plan is to replicate the composition of the Nifty, with a view to endeavour

to generate returns, which could approximately be the same as that of Nifty.

The Investment Objective under the Sensex plan is to replicate the composition

of the Sensex, with a view to endeavour to generate returns, which could

approximately be the same as that of Sensex.

g. Reliance NRI Equity Fund:

(An open-ended Diversified Equity Scheme.) The Primary investment objective

of the scheme is to generate optimal returns by investing in equity or equity

related instruments primarily drawn from the Companies in the BSE 200 Index.



B. Debt Schemes:

a. Reliance Monthly Income Plan:

(An Open Ended Fund Monthly Income is not assured & is subject to the

availability of distributable surplus) The Primary investment objective of the

Scheme is to generate regular income in order to make regular dividend

payments to unit holders and the secondary objective is growth of capital.

Primarily the investment shall be made in debt and money market securities

(i.e. 80%) with a small exposure (i.e. up to 20%) in equity.

b. Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt

Plan:

Open-ended Government Securities Scheme) the primary objective of the

Scheme is to generate optimal credit risk-free returns by investing in a portfolio

of securities issued and guaranteed by the central Government and State

Government

c. Reliance Income Fund:

(An Open-ended Income Scheme) The primary objective of the scheme is to

generate optimal returns consistent with moderate levels of risk. This income

may be complemented by capital appreciation of the portfolio. Accordingly,

investments shall predominantly be made in Debt & Money Instruments.

d. Reliance Medium Term Fund:

(An Open End Income Scheme with no assured returns.) The primary

investment objective of the Scheme is to generate regular income in order to



make regular dividend payments to unit holders and the secondary objective is

growth of capital.

e. Reliance Short Term Fund:

(An Open End Income Scheme) The primary investment objective of the

scheme is to generate stable returns for investors with a short investment

horizon by investing in Fixed Income Securities of short term maturity.

f. Reliance Liquid Fund:

(Open-ended Liquid Scheme). The primary investment objective of the Scheme

is to generate optimal returns consistent with moderate levels of risk and high

liquidity. Accordingly, investments shall predominantly be made in Debt and

Money Market Instruments.

g. Reliance Fixed Term Scheme:

(Close-ended Income Scheme) The primary objective of the Scheme is to seek

to achieve regular returns / growth of capital by investing in a portfolio of fixed

income securities normally maturing in line with the time profile of the plan

with the objective of limiting interest rate volatility.

h. Reliance Floating Rate Fund:

(An Open End Income Scheme) The primary objective of the scheme is to

generate regular income through investment in a portfolio comprising

substantially of Floating Rate Debt Securities (including floating rate

securitized debt and Money Market Instruments and Fixed Rate Debt

Instruments swapped for floating rate returns). The scheme shall also invest in



fixed rate debt Securities (including fixed rate securitized debt, Money Market

Instruments and Floating Rate Debt Instruments swapped for fixed returns.

i. Reliance NRI Income Fund:

(An Open-ended Income scheme) The primary investment objective of the

Scheme is to generate optimal returns consistent with moderate levels of risks.

This income may be complimented by capital appreciation of the portfolio.

Accordingly, investments shall predominantly be made in debt Instruments.

j. Fixed Maturity Fund - Series I: Reliance

(A Close Ended Income Scheme)The primary investment objective of the

Scheme is to seek to achieve regular returns / growth of capital by investing in a

portfolio of fixed income securities normally maturing in line with the time

profile of the Plan with the objective of limiting interest rate volatility.

k. Reliance Fixed Maturity Fund - Series II:

(A closed ended Income Scheme) The primary investment objective of the

Scheme is to seek to achieve growth of capital by investing in a portfolio of

fixed income securities normally maturing in line with the time profile of the

respective plans.

l. RELIANCE REGULAR SAVINGS FUND:

(An Open - ended scheme)

The Investment Objectives:-

Debt Option: The primary investment objective of this plan is to generate

optimal returns consistent with moderate level of risk. This income may be



complemented by capital appreciation of the portfolio. Accordingly investments

shall predominantly be made in Debt & Money Market Instruments.

Equity Option: The primary investment objective is to seek capital

appreciation and or consistent returns by actively investing in equity / equity

related securities.

Hybrid Option: The primary investment objective is to generate consistent

return by investing a major portion in debt & money market securities and a

small portion in equity & equity related instruments.

Sector Specific Schemes

Sector Funds are specialty funds that invest in stocks falling into a certain sector

of the economy. Here the portfolio is dispersed or spread across the stocks in

that particular sector. This type of scheme is ideal for investors who have

already made up their mind to confine risk and return to a particular sector.

Reliance Banking Fund

Reliance Mutual Fund has an Open-Ended Banking Sector Scheme which has

the primary investment objective to generate continuous returns by actively

investing in equity / equity related or fixed income securities of banks.

Reliance Diversified Power Sector Fund

Reliance Diversified Power Sector Scheme is an Open-ended Power Sector

Scheme. The primary investment objective of the Scheme is to seek to generate

consistent returns by actively investing in equity / equity related or fixed

income securities of Power and other associated companies.



Reliance Pharma Fund

Reliance Pharma Fund is an Open-ended Pharma Sector Scheme. The primary

investment objective of the Scheme is to generate consistent returns by

investing in equity related or fixed income securities of Pharma and other

associated companies.

Reliance Media & Entertainment Fund

Reliance Media & Entertainment Fund is an Open-ended Media &

Entertainment sector scheme. The primary investment objective of the Scheme

is to generate consistent returns by investing in equity / equity related or fixed

income securities of media & entertainment and other associated companies.



Functional departments.

Functional areas of the Reliance Industry ltd. Mutual fund Bangalore

1. FINANCING DEPARTMENT

2. SALES DEPARTMENT

3. HUMAN RESOURCE DEPARTMENT

Finance department

Finance is the life blood of business. Finance is the base of all corporate

activities in the day to day world. Management of finance is broadly concerned

with the acquisition and use of funds by a business firm.

Reliance mutual fund has a very efficient Finance Department headed by

Manager Finance. All the Finance Department staffs are professionals. Finance

Department consist of a team of professionals headed by Manager Finance,

having sufficient industry experience in the field of accounting, costing,

taxation, company law and financial management

OBJECTIVES OF FINANCE DEPARTMENT

1. To manage & account for the financial resource of the organization, to

forecast its requirement in the future and plan accordingly and to check for

deviation.

2. Report the financial performance of the organization, to comply with the

government rules and regulation.



FUNCTIONS OF FINANCE DEPARTMENT

The main functions of finance department are defined as follows:-

1. Recording of day-to-day business transaction.

2. Receiving payments from customers and accounting these funds.

3. Preparations of sales budgets and revenue budgets and expenditure

budgets on quarterly basis.

4. Preparations and, maintenance of costing records.

5. Preparations of fund flow and cash flow statement for every month.

6. Preparing and filling of quarterly and final income tax returns.

7. Preparations and implementation of cost reduction and cost control

methods.

8. Conduct and co-ordinate internal and stationary audits.

9. Perpetual stock verification and asset evaluation.

JOB DESCRIPTION OF PEOPLE IN FINANCE DEPARTMET

Responsibility of people in finance department

Establishing and controlling the financial systems and administrative services of

the organization, and providing financial information to Board of Directors.

MANAGER (FINANCE)

Main duties

Directing the establishment of financial/accounting principles,

procedures and practices in line with legal and corporate requirements.

Ensuring accurate and timely financial reports and forecasts for the whole

organisation so as to provide a clear insight into its financial condition.



Ensuring that the profits of the organisation are protected through the

establishment of effective financial controls; implementing and

maintaining appropriate management accounting and reporting systems,

budgetary controls and expenditure procedures.

ADMINISTRATIVE OFFICER (FINANCE)

Main duties

Providing accurate and timely financial reports and forecasts and general

accounting and administrative services.

Ensuring effective costing and contribution analysis.

Implementing policies to ensure the security of funds and assets.

CASHIER

Main duties

Maintain an awareness of all promotions and advertisements.

Accurately and efficiently ring on registers and accurately maintain all

cash and media at the registers.

Communicate customer requests to top management.

INTERNAL AUDIT

The audit of all branch office departments of the corporation is completing

every year financial year. In keeping with practice of improving our systems

and procedures through the use of IT as a tool, audit packages are being used so

that our auditors are able to carry out the audit in a Front End Applications

package environment.



INSPECTION

The inspection of all the branches of the corporation in India is completing

within time schedule. Implementation of inspection package in all our offices

led to transparency by on-line report writing, acceptance of compliance and

closure process.

VIGILANCE

Special efforts were made to focus on disposal of vigilance cases pending for

more than one year. Besides expediting disposal of vigilance cases, emphasis is

also laid on preventive vigilance through the dissemination of information on

areas susceptible to vigilance.

NOMINEE DIRECTORS

The corporation appoints nominee directors on the board of the companies

where it has substantial stake by way of debt or equity. Nominees are officials

of the corporation who are in service or retired. Adequate systems are in place

to review and guide the nominee directors from time to time. Nominee directors

provide feedback with regard to operations problems, prospects and corporate

governance standards etc.

RISK MANAGEMENT

Corporation is the largest institutional investor in the financial market and its

staggering fund size which is placed in varying asset classes is exposed to

various financial risks. To mitigate the investment risks arising out of market

risk, credit risk, interest rate risk and other risks inherent in the financial



market, a distinct full-fledged Risk management structure has been created in

the corporation.

BOARD MEETINGS

Board meetings as per regulations are generally held once in three months. In

addition to policy matters, the board provides strategic direction for execution

ensures financial discipline and accountability to the policy holders and also

ensures the interest of the policy holders and stakeholders.

Sales department

Sales management is a business discipline which is focused on the practical

application of sales techniques and the management of a organizational sales

operations. It is an important business function as net sales through the sale of

products and services and resulting profit drive most commercial business.

These are also typically the goals and performance indicators of sales

management. The art of meeting the sales targets effectively through meticulous

planning and budgeting refers to sales management. Sales Management helps to

extract the best out of employees and achieve the sales goals of the organization

in the most effective ways.

Process of Sales Management

Sales Planning

Marketers must plan things well in advance for the best results. It is

essential to have concrete plans. Mere guess works do not help in

business.



Know product well. Sales professionals must know the benefits of the

product for the consumers to believe them.

Identify the target market.

Sales Planning makes the products available to the end users at the right

time and at the right place.

Sales Planning helps the marketers to analyse the customer demands and

respond efficiently to fluctuations in the market.

Devise appropriate strategies to increase the sales of the products.

Sales Reporting

Sales strategies are implemented in this stage.

Check the effectiveness of the various strategies. Find out whether they

are bringing the desired results or not.

Ask the sales team to submit reports of what all they have done

throughout the week. The management must sit with the sales team

frequently to assess their performance and chalk out future course of

actions.

Sales Process

Sales process refers to various activities which help in the timely

achievement of sales targets for the successful functioning of an

organization.

Sales Process includes various strategies and techniques employed by an

individual to achieve sales goals within the stipulated time frame.



MANAGER (SALES)

Sales manager is the typical title of someone whose role is sales management.

The role typically involves sales planning, human resources, talent

development, leadership and control of resources such as organizational assets.

Main duties

Manage and coordinate all marketing, advertising and promotional staff

and activities

Conduct market research to determine market requirements for existing

and future products

Analysis of customer research, current market conditions and competitor

information

Develop and implement marketing plans and projects for new and

existing products.

MARKETING ACTIVITIES IN RELIANCE MUTUAL FUND

PRODUCT DEVELOPMENT

In a competitive market, there is a greater need to provide insurance products

that meet the needs of customers RMF therefore a wide variety of products

which fulfils the needs of different segments of the society. As at the end of the

financial year 2009-10, the corporation had 54 plans available for sale.



FIELD PERSONNEL TRAINING (FPT)

The theme of FPT is professionalism. For the purpose, training in a big way is

conducting across all zones using reputed International / National Training

Institutions.

BANKASSURANCE & ALTERNATE CHANNELS

Bank assurance is the term used to describe the partnership or relationship

between a bank and an insurance company whereby the insurance company

uses the bank sales channel in order to sell insurance products.

DIRECT MARKETING

This vertical is started with an objective of “creating new systems for business

generation, sales process monitoring and business processing with a view to

reach out to untapped markets and provide improved buying experience to

customers.”

In a short period, the channel has expanded and professionally trained Direct

Sales Executives (DSEs) to provide financial advice to prospective customers.

The main focus of the channel was setting up systems and processes. A state of

art lead management system has been established to provide easy access to

prospective customers to reach out to LIC to buy a policy. Such leads captured

through our website. www.reliancemutualfund.com is passed on to well trained

DSEs on real time basis who can contact the customer instantly.

AGENTS

Most people have their first contact with an insurance company through an

insurance sales agent. These workers help individuals, families, and businesses



select insurance policies that provide the best protection for their lives, health,

and property. Insurance sales agents commonly referred to as “producers” in the

insurance industry.

a) Agency Strength

The total number of agents on our role is 140280 as at 31.03.2011 as

against 134485 as on 31.03.2012.

b) Agents’ Club Membership

In order to motivate and recognize high performers amongst agents a

premium club called the Corporate Club. The other 5 clubs which were

formed to recognize agents, who perform consistently year after year.

MEMBERS OF VARIOUS AGENTS CLUBS

a) Career Agents Scheme

The corporation has a scheme of Urban Career

Agents and Rural Career Agents to promote

the cause of professionalizing the agency

force. They are given Stipends at the start of

their career to enable them to settle down in

the profession.

b) Chief mutual fund Advisor Scheme

The corporation introduced the above scheme

with an objective of increasing its market


Name of the Club

Corporate

Chairman

Zonal Manager

Divisional Manager

Branch Manager

Distinguished Agents


presence through more agents by utilizing capabilities of existing high

performing agents for organizational growth.

c) Authorised Agents

In tune with the increasing customer expectation for more conveniences in

premium payments and servicing, the corporation has empowered select

agents to collect the renewal premium through “Premium Points”.

HR DEPARTMENT

For any business to run one needs four M’s namely Man, Money, Machine and

Material. Managing other three resources other than men, are easy to handle.

Men are very difficult to handle because no two human beings are similar in all

way. Human beings can think, feel and give response. Handling humans is more

important for any business because human being have crucial potential that may

be very profitable for the business. And these potential can be developed to an

unlimited extent if they are provided with proper environment. So the function

of managing men is as important as finance or marketing function in any

business.

HRM refers to practices and policies framed for the management of human

resources in an organization, including Recruiting, screening, rewarding and

appraising.”Human resources have at least two meanings depending on context.

The original usage derives from political economy and economics, where it was

traditionally called labour, one of three factors of production. The more

common usage within corporations and businesses refers to the individuals

within the firm, and to the portion of the firm's organization that deals with


http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Corporation

http://en.wikipedia.org/wiki/Factors_of_production

http://en.wikipedia.org/wiki/Factors_of_production

http://en.wikipedia.org/wiki/Labour_(economics)

http://en.wikipedia.org/wiki/Economics

http://en.wikipedia.org/wiki/Political_economy


hiring, firing, training, and other personnel issues. This article addresses both

definitions.

The objective of Human Resources is to maximize the return on investment

from the organization's human capital

HR STRUCTURE

CORPORATE HR:

Activities taken up by Corporate HR are:

Policy making

Implementing suggestions - HEWITT CONSULTANT

Strategic planning.

ENTITY HR:

Activities taken up by Entity HR are :

Execution of policies and practices

Targets for recruitment of Circle HR.

PRESIDENT HR

CORPORATE HR

ENTITY HR

CIRCLE HR CEO



CIRCLE HR:

Activities taken up by Circle HR are:-

Recruitment

Appointment

Training

Payroll

Employees issues

Exit full & final

HR FUNCTIONS

Talent acquisition

Talent development

Performance management system

Training

Carrier planning

Suggestion planning

TALENT MANAGEMENT

Operation HR

RECRUITMENT PROCESS

STEP 1: MANPOWER PLANNING

AOP (Annual Operating Plan), this process is taken up every year. It is taken up

at Personal Level and Entity Level. Several points like Revenue generation,

Acquisition number, etc.



STEP 2: SOURCING ACTIVITY

There are three types of sourcing done at Reliance. After candidates are chosen

then the same is sent to the department head where the vacancy arises. The

department head will then shortlist the same and they ask the HR department

to fix an interview with the selected candidates. There are two type of

interview which is taken up at Reliance, firstly the Functional interview and

then the Functional Head and HR Head takes the interview.

INTERNAL SORCING

Employee Reference

Re-employment of former employee

EXTERNAL SOUCING

Placement Consultant – Ruchika, the Age, the Avenue.

Job Portals - Monster, NAUKRI.

Campus Recruitment

STEP 3: APPROVAL.

The HR executives will negotiate the CTC with the candidate.

The approval is sent to the CRC (Corporate Recruitment Cell).

Then after it is sent to ECRC

Then the same is sent to CRL

The same is then sent to Management for SAP Applicant Code.



MCKINSEY 7-S FRAMEWORK



MCKINSEY 7-S FRAMEWORK

While some models of organizational effectiveness go in and out of fashion,

one that has persisted is the McKinsey 7-S framework. Developed in the early

1980s by Tom Peters and Robert Waterman, two consultants working at the

McKinsey & Company consulting firm, the basic premise of the model is that

there are seven internal aspects of an organization that need to be aligned if it is

to be successful.

The 7-S model can be used in a wide variety of situations where an alignment

perspective is useful, for example, to help you:

Improve the performance of a company

Examine the likely effects of future changes within a company.

Align departments and processes during a merger or acquisition.

Determine how best to implement a proposed strategy

The Seven Elements

The McKinsey 7-S model involves seven interdependent factors which are

categorized as either "hard" or "soft" elements:

Hard Elements Soft Elements

Strategy

Structure

Systems

Shared Values

Skills

Style



Hard Elements Soft Elements

Staff

"Hard" elements are easier to define or identify and management can directly

influence them: These are strategy statements; organization charts and reporting

lines; and formal processes and IT systems.

"Soft" elements, on the other hand, can be more difficult to describe, and are

less tangible and more influenced by culture. However, these soft elements are

as important as the hard elements if the organization is going to be successful.

The way the model is presented in Figure 1 below depicts the interdependency

of the elements and indicates how a change in one affects all the others.



Let's look at each of the elements specifically:

Strategy: the plan devised to maintain and build competitive advantage

over the competition.

A strategy is a plan of action and a choice of direction designed to achieve

goals and objectives in a competitive situation it sets the vision, mission,

objectives ,action plans in the organization

As per the vision and mission statement of the company, the main strategy

RELIANCE MUTUAL FUND To be a globally respected wealth creator,

with an emphasis on customer care and a culture of good corporate

governance and To create and nurture a world-class, high performance

environment aimed at delighting their customers the strategic goal is to

excel in the service with integrity, diligence and transparency in satisfying

the customers investment need and to build itself as the most trusted world

class financial services providers.

Thus by adopting such strategies ,reliance mf seeks to achieve its objectives

and create value to its clients.

Structure: this includes policies and procedures that govern the way in

which organization acts within it and the environment . it provides the

frame work and relationship among different parts of the organization . it

sets out the formal relationships among different parts of the organization

as board of directors , debt fund managers, equity fund managers fund



managers, functional leadership team, management team , sales leadership

team

Systems: the daily activities and procedures that staff members engage in

to get the job done.

Shared Values: called "super ordinate goals" when the model was first

developed, these are the core values of the company that are evidenced in

the corporate culture and the general work ethic

Style: the style of leadership adopted

Staff: the employees and their general capabilities.

Skills: the actual skills and competencies of the employees working for the

company



SWOT ANALYSIS



SWOT ANALYSIS :-

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a business venture. It

involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favourable and

unfavourable to achieve that objective.

A SWOT analysis must first start with defining a desired end state or objective.

A SWOT analysis may be incorporated into the strategic planning model.

Strengths: attributes of the person or company that is helpful to achieving the

objectives.

Weaknesses: attributes of the person or company that is harmful to

achieving the objectives.

Opportunities: external conditions that is helpful to achieving the

objectives.

Threats: external conditions which could do damage to the objectives.

Identification of SWOTs is essential because subsequent steps in the process of

planning for achievement of the selected objective may be derived from the

SWOT .Identification the threats and opportunities in the environment and

strength weakness of the firm is the basis of business policy formulation; these

factors determine the course of action to ensure the survival or growth of the

firm. The environment might present many opportunities but a company might

not have the strengths to exploit all opportunities. Similarly, sometimes a firm

will not have the strengths to meet the environmental threats. If a company thus

finds that it will not have the competence to survive in a particular line of



business, it will prudent to give up and concentrate on such business for which

the firm is most competent.

I. STRENGTH

Brand strategy :

as opposed to some of its competitors (e.g. HSBC), Reliance mutual

funds operates a multi-brand strategy. The company operates under

numerous well-known brand names, which allows the company to appeal

to many different segments of the market.

Distribution channel strategy: Reliance is continuously improving the

distribution of its products. Its online and Internet-based access offers a

combination of excellent growth.

There are well trained and experienced development officer for

guiding agent.

Agents are business minded and experienced in this profession.

The company has the direct marketing network with well

established distribution system.

The company has fully computerized departments and production

units and corporate office is connected through intranet.

II. WEAKNESS

Emerging markets since there is more investment demand in the United

States, Japan and the rest of Asia. Reliance should concentrate on these

markets, especially in view of low global interest rates.



Mutual funds are like many other investments without a guaranteed

return . There is always the possibility that the value of your mutual fund

will depreciate. Unlike fixed-income products, such as bonds and

Treasury bills, mutual funds experience price fluctuations along with the

stocks that make up the fund. When deciding on a particular fund to buy,

you need to research the risks involved – just because a professional

manager is looking after the fund, that doesn’t mean the performance will

be stellar.

Fees: In mutual funds, the fees are classified into two categories:

shareholder fees and annual operating fees. The shareholder fees, in the

forms of loads and redemption fees are paid directly by shareholders

purchasing or selling the funds. The annual fund operating fees are

charged as an annual percentage – usually ranging from 1-3%. These fees

are assessed to mutual fund investors regardless of the performance of

the fund. As you can imagine, in years when the fund doesn’t make

money, these fees only magnify losses.

The middle class population that we are eyeing at are today

overburdened, first by inflationary pressures on their pockets and then by

the tax net.

It is not an independent decision making on, it always dependent to

national economic conditions

It should follow the updating Indian economic norms.



III. OPPORTUNITIES

Potential markets: The Indian rural market has great potential. All the

major market leaders consider the segments and real markets for their

products. A senior official in a one of the leading company says foray

into rural India already started and there has been realization that the

rural market is both price and quantity conscious.

Entry of MNCs: Due to multinationals are entering into market job

opportunities are increasing day by day. Also India Mutual Fund majors

are tie up with other financial institutions.

Mutual fund market is very big, where company can expand its horizon

in insurance industry.

Globalization of the economy has helped the organization to overcome

operational restrictions.

IV. THREATS

Hedge funds: Sometimes referred to as as hot money, are also causing a

threat for mutual funds have gained worldwide notoriety for bringing

the markets down. Be it a crash in the currency, A stock or A bond

market, A usually a hedge fund prominently figures somewhere in the

picture.

The investors in the capital may turn their face off in case the rate of

return on capital falls short of the existing rate of return on capital.

It’s still difficult task to win the confidence of public towards mutual

company.

Highly competitive market The Company is facing some threats from

other private companies.



RESEARCH METHODOLOGY



RESEARCH METHODOLOGY

Research methodology is a way to solve the problem scientifically and

systematically. It basically includes the selection of various methods and

techniques in the research conducted.

TITLE OF THE STUDY

“A STUDY ON CUSTOMER SATISFACTION TOWARDS RELIANCE

MUTUAL FUND BANGALORE BRANCH”

STATEMENT OF PROBLEM

The number of studies conducted to understand the customer satisfaction

towards Reliance Mutual Funds remains elusive and the throat cut competition

facing by the company is the major reason to study customer satisfaction

towards reliance mutual fund and also to check whether the distributors are

satisfied with the performance of reliance mutual funds (RMF).

RESEARCH OBJECTIVES:

The study level of satisfaction of customers towards Reliance Mutual

Fund.

To find the factors which are responsible for slow growth of mutual

funds.

To find the customer’s preference to various options available in

Reliance Mutual Fund.

To know the kind of benefit people expected from Reliance Mutual Fund.



SCOPE OF THE STUDY

The study urges to know the customer satisfaction , current market trend and

performance and also to improve the existing services and to add on anything if

required the study also helps to understand risk and hence informed about

investment decisions for better performance of the company

NEED FOR THE STUDY

The main purpose of doing this project was to know about mutual funds and

customer satisfaction This also helps to know in detail about various of

mutual fund schemes and also performance of various mutual fund schemes

It also helps in understanding how a fund is being designed

It also helps in understanding whether a Sales manager decisions and strategy

also affects the customer satisfaction

IMPORTANCE OF THIS STUDY

Every person who has no knowledge about investment can easily invest in

mutual funds

One of the mode of investing in mutual funds is SIP’s systematic investment

plan is less risky to invest and every investor want to invest on less price.

Mutual fund is totally depend on NAV [net asset value]

Comparatively investors have limited risk since the investments are managed

by highly experienced and qualified fund manager



The primary investment objective of the Scheme is to achieve long term

growth of capital by investing in equity and equity related securities through

a research based investment approach. However, there can be no assurance

that the investment objective of the Scheme will be realized, as actual market

movements may be at variance with anticipated trends.

This study helps to know about level of customers satisfaction and whether

distributors are happy with the performance of Reliance Mutual Funds

DATA COLLECTION

There are several ways of collecting the appropriate data which differ

considering in context of money, costs ,time, and other resources data can be

collected through different sources.

Primary data

Primary data was collected through survey method by distributing questionnaire

to the different customers of reliance mutual funds in Bangalore branch

Secondary data

The secondary data collection includes collection of data through sources like

3. Fund facts sheets of different AMC’S that are considered for the analysis

purpose

4. The NAV’s are taken from AMFI & websites of the AMC’S under

consideration

5. From record, report, magazine and websites or RMF.



LIMITATIONS OF THE STUDY

Time constraints : due to less availability of time it may be possible that

all the related aspects May not be covered in the project

Analysis is done with the limited availability of the data



DATA ANALYSIS AND INTERPRETATION



TABLE: 1

As a financial planner in Reliance mutual fund product falls under your

product bucket

PARTICULARS NUMBER OF

RESPONDENTS

PERCENTAGE

Yes 30 100

No 0 0

Total 30 100

ANALYSIS

100% of the respondents agree that as a financial planner RMF product falls

under customers product bucket.

NUMBER OF RESPONDENTS

PERCENTAGE

0 10 20 30 40 50 60 70 80 90

EXCELLENTVERY GOOD



INTERPRETATION

All the respondents agree that as a financial planner RMF product falls under

their product bucket.

TABLE: 2

Rating the performance of Reliance Mutual Funds


RESPONDENTS

PERCENTAGE

Excellent 8 27

Very Good 20 67

Good 2 6

Moderate 0 0

Total 30 100

ANALYSIS

67% of the respondents rate performance of RMF is Very Good, 27% rate

excellent, and 6% rate Good



EXCELLENT

VERY GOOD

GOOD

FAIR

0 10 20 30 40 50 60

NUMBER OF RE-SPONDENTSPERCENTAGE

Interpretation

Majority of the respondents rate the performance of RMF is Very Good.

TABLE: 3

Rating the services provided by Reliance Mutual Funds?


RESPONDENTS

PERCENTAGE

Very Satisfied 5 17

Satisfied 17 57

Neither Satisfied

Nor Dissatisfied

7 23

Dissatisfied 1 3

Very Dissatisfied 0 0

Total 30 100



ANALYSIS

According to the analysis, 57% of the respondents rate the services provided by

RMF is Good, 23% rate Average, 17% rate Excellent, and 3% rate as Below

Average.

EXCELLENT

VERY GOOD

GOOD

FAIR

POOR

0 5 10 15 20 25 30 35 40 45 50

PERCENTAGENUMBER OF RE-SPONDENTS

Interpretation

Majority of the respondents rate the services provided by RMF as Good.



TABLE: 4

While taking a investment decision what matters a lot


RESPONDENTS

PERCENTAGE

AMC 0 0

Performance 22 73

Consistency 8 27

Service 0 0

Fund Manager 0 0

Total 30 100

ANALYSIS

73% of the respondents feel that while taking a investment decision

Performance matters a lot, and 27% Consistency is considered.

EXCELLENT

VERY GOOD

GOOD

FAIR

POOR

0 5 10 15 20 25 30 35 40 45 50




INTERPRETATION

Majority of the respondents feel that while taking a decision Performance

matters a lot.

Table: 5

RMF has a sizable impact as compared to its peers in MF industry


RESPONDENTS

PERCENTAGE

Yes 30 100

No 0 0

Total 30 100

ANALYSIS

All the respondents tell Yes that RMF has a sizable impact as compared to its

peers in MF industry.



NUMBER OF RESPONDENTS

PERCENTAGE

0 10 20 30 40 50 60 70 80 90

Interpretation

All the respondents tell Yes that RMF has a sizable impact as compared to its

peers in MF industry

TABLE: 6

RMF is very helpful in analyzing and making right choice of investments to

the distributors

ANALYSIS



RESPONDENTS

PERCENTAGE

Yes 26 87

No 0 0

To some extent 4 13

Total 30 100


87% of the respondents tell that RMF is very helpful in analyzing & making

right choice of investments to the investors, 13% tell To some extent.

EXCELLENT

VERY GOOD

GOOD

0 5 10 15 20 25 30 35 40 45 50


INTERPRETATION

Majority of the respondents tell Yes RMF is very helpful in analyzing &

making right choice of investments to the investors.

TABLE: 7



RMF has a greater technological advancements when compared to other

AMC’


RESPONDENTS

PERCENTAGE

Yes 25 83

No 0 0

To some extent 5 17

No knowledge 0 0

Total 30 100

ANALYSIS

Yes (83%) RMF has a greater technological advancements when compared to

other AMC’s, and 17% feel To some extent.

EXCELLENT

VERY GOOD

GOOD

0 5 10 15 20 25 30 35 40 45 50


INTERPRETATION



Majority of the respondents tell Yes that RMF has a greater technological

advancements when compared to its peers in MF industry.

TABLE: 8

Rating the equity performance of Reliance Mutual Fund in long run


RESPONDENTS

PERCENTAGE

Excellent 13 43

Very Good 12 40

Good 5 17

Fair 0 0

Poor 0 0

Total 30 100

ANALYSIS

According to the rating, 43% of the respondents rate the equity performance of

RMF in long run is Excellent, 40% rate it Very Good, and 17% rate it as Good.



EXCELLENT

VERY GOOD

GOOD

FAIR

POOR

0 5 10 15 20 25 30 35 40 45 50


INTERPRETATION

43% of the respondents rate the equity performance of RMF in long run is

Excellent



HYPOTHESIS TESTING



HYPOTHESIS TESTING :

Objective: To understand the relationships between Performance and Services provided by the Reliance Mutual Fund

NULL HYPOTHESIS:

HO: Performance and services are not correlated

ALTERNATE HYPOTHESIS:

Ha: Performance and services are correlated

CORRELATION TEST :

Table 9:

Rating the services provided by Reliance Mutual Funds

PARTICULARS NUMBEROF

RESPONDENTS

Very Satisfied 5

Satisfied 17

Neither Satisfied

Nor Dissatisfied

7

Dissatisfied 1

Very Dissatisfied 0

Total 30



Table 10 : Performance of Reliance Mutual Fund

PARTICULARS NUMBER RESPONDENTS

Excellent 8

Very Good 20

Good 2

Moderate 0

Total 30

SIGNIFICANCE LEVEL: α=0.05

P value: 0.006

DECISION:

Reject H0 : P < α

P value < α

i.e 0.006<0 .05

So, Reject Ho

STATEMENT: There is a positive significant relationship between the performance and services provided by Reliance Mutual Funds.



SUGGESTIONS

AND

RECOMMENDATIONS



SUGESSIONS AND RECOMMENDATION :-

Unawareness and ignorance by the customers: Investors should be made

aware of the benefits. Nobody will invest until and unless he is fully

convinced. Investors should be made to realize that ignorance is no

longer bliss and what they are losing by not investing. Mutual funds and

Insurance policies offer a lot of benefit, which no other single option

could offer. But most of the people are not even aware of what actually a

mutual fund is.

Advisors should Charge a nominal fee at the beginning. But if not

possible then they could go for offering more services and benefits at the

existing rate. They should also maintain their decency and follow the

code of ethics so that the investors could trust upon them. Thus the

advisors should try to attract more and more persons and turn them into

investors and finally their clients.

The investor should consult the financial experts or the investment

advisors before taking any decisions.

Both- the economy and the corporate sector are doing well but the

valuations are fair and priced for perfection.



Asset allocation and Systematic Investment Plans are the best way to

safeguard against volatility. They insure optimal returns and not the

maximum return in volatile markets.

Investors who able to wait for long time could look at value stocks,

which consistently perform over a period of time.

Investors should look at a mix of large and mid cap funds for 3-5 years

horizon on systematic investment basis.

With the long-term India growth story intact, remain invested in equity

with a longer time horizon.



FINDINGS



FINDINGS

1. 67% of the respondents rate performance of RMF is Very Good, 27%

rate excellent, and 6% rate Good .Majority of the respondents rate the

performance of RMF is very good.

(Table no. 2)

2. According to the analysis, 57% of the respondents are satisfied by

services provided by RMF ,23% are neither satisfied nor dissatisfied ,

17% very satisfied , and 3% are dissatisfied . Majority of the respondents

rate the services provided by RMF as Good

(Table no. 3)

3. All the respondents tell Yes that RMF has a good impact as compared to

other AMC in MF industry.

(Table no.5)

.4.87% of the respondents tell that RMF is very helpful in analyzing &

making right choice of investments to the investors, 13% tell To some

extent. Majority of the respondents tell Yes RMF is very helpful in

analyzing & making right choice of investments to the investors.

(Table no. 6)

5. 73% of the respondents feel that while taking a investment decision

Performance matters a lot, and 23% Consistency is considered Majority of

the respondents feel that while taking a decision Performance matters a lot.

(Table no. 4)



6.According to the rating, 43% of the respondents rate the equity

performance of RMF in long run is Excellent, 40% rate it Very Good, and

17% rate it as Good.43% of the respondents rate the equity performance of

RMF in long run is Excellent (Table no. 8)

.



CONCLUSION



CONCLUSION

The research shows that Equity Funds are performing well, but the investments

from investors are less in equity funds, because of unawareness about mutual

funds.

Therefore company has to take some steps to make aware people of Mutual

Funds, through advertisements in Newspaper, Magazine, Commercial

advertisement, distributing leaflets, Television, Radios. And I came for

following conclusion :

All the workers and staff work together to increase the organization’s

profit and thereby to increase its growth, each department works without

any failures.

Very less people knows about the service of Reliance.

Managing complex business processes is one of the important

management challenges of this new century. Moreover, globalization and

technological advancement are driving changes in all sectors. In reliance

organisational structure and management style are playing an important

role in Information Technology Management.

Structure is influenced by the external environment in which the business

operates as well as its culture and the nature of the work and activities it

undertakes.

The structure can have both a positive and negative impact on a business.

Having the right structure allows a business to respond and adapt to

changes in the market quickly.



The company needs to adopt new strategy’s to have an efficient

departments

. The organization is following highly appreciable managerial practices,

which made it possible to the organizational goals more easily. The HR

policies set by the company are remarkable. Satisfied workers are

considered to be the assets of the organization and they are motivated

enough to perform well. The infrastructure facilities are very much

impressive. There is a high rate of capacity utilization. Quality

management system is also remarkable.

By this study, I was able to understand how the various functional

departments of an organization co-ordinate and work towards achieving

the organizational goals in an effective and efficient manner. I am sure

that my study at Reliance capital asset management was a success and

hope that it will be an asset for my future.

The awareness level of investors is low who are interested in dealing in

mutual fund:

Most of investors are totally unaware about this investment.

Very less people knows about the service of Reliance.

Past image of mutual fund is not good.

Reliance can promote the investors by advertising, hording, and by

interviews to invest in this fund.

Most of the investors want to invest in public co.’s fund just because of

safety purpose.

Most of the investors want to safer side in investment.



Most of the investors want to invest in debt funds because those are the

risk free funds; it gives the interest on investment.

Most of the investors don’t know about the mutual funds so they want

advisory services from reliance which could provide them whole

information about the market situation of mutual fund.



LEARNING EXPERIENCE



LEARNING EXPERIENCE

Before joining for internship I felt that making investment in mutual funds was

difficult task .but later joining to reliance mutual fund as an intern ..

1. I got a clear idea how to invest in mutual fund

2. What is the cut off time for liquid funds and equity funds

3. How to fill an application form without a single mistakes because if even

a single mistake or overwriting is found the application will be rejected

by RMF in such a case the units will not be allotted to the investors on

that particular NAV.

4. what is kyc- know your client, when a new investor want to invest in

mutual fund then KYC is mandatory before investing in any mutual fund

5. what is “KYC’details change form”

in case of Individuals, missing/not available details are as follows:

• Father’s/Spouse Name,

• Marital Status,

• Nationality,

• Gross Annual Income or Net worth as on recent date

6. SIP means systematic investment plan which allows the investors to

invest a fixed amount on a particular scheme on regular basis Your

money is auto-debited from your bank account and invested into a

specific mutual fund scheme. You are allocated certain number of units

based on the ongoing market rate (called NAV or net asset value) for the

day.

7. What is the difference between equity fund schemes and liquid fund

schemes what is the risk and return involved in it



8. My guide – Varrun Y [ Area Sales Manager ] who use to say that

practical knowledge is very important so he use to make me travel along

with him to banks , clients ,the way he use to communicate, the way he

use to identify the potential clients, the way he use make the clients to

understand about the benefits of newly launched schemes and make them

to invest in reliance mutual fund .

This gave me a clear idea how reliance mutual fund is successful in

attracting the clients to invest in reliance mutual fund and it also

improved my communication skills a lot .

I am really thank full to all the employees ,all the top level managers

especially regional manager and relationship manager [ Bangalore

branch]for giving a chance to work as an intern for 3 months and

who has helped me, guided me a lot in successfully completion of the

project .



ANNEXURE



QUESTIONNAIRE

I, ANAND KUMAR SINGH , MBA (MARKETING) student of M.S.Ramaiah

Institute of Technology, Bangalore as a part of partial fulfilment of the

requirement of MBA course, a project title “A STUDY ON CUSTOMER

SATISFACTION TOWARDS RELIANCE MUTUAL FUNDS AT

BANGALORE BRANCH ” is being undertaken. Kindly request you to

provide your valuable response for the questionnaire. The response shall be

treated as confidential and it is meant for academic purpose only.

PERSONAL DETAILS:

Name :

1. As a financial planner is Reliance mutual fund product falls under your

product bucket

A. Yes

B. No

2. How did you come to know about Reliance mutual Fund?

a) Friends /Relatives b) News papers / magazines

c) Brokers/Agents d) Financial consultants.

Other_________________________



3. Which Schemes of Reliance Mutual fund would you prefer the most?

Equity Schemes Debt Scheme

4. Which Equity Scheme you prefer the most in Reliance Mutual Fund?

(Rank them from 1 to 5, 1 being the most preferred and 5 being the

least)

Reliance Growth [ ]

Reliance Vision Fund [ ]

Reliance Equity Opportunity Fund [ ]

Reliance Tax Saver (ELSS) Fund [ ]

Reliance Equity Fund [ ]

5. What factors do you consider while investing in mutual fund? (Rank them

from 1 to 6. No1 for preferred and No 6 for least preferred)

a) Safety b ) Rate of return

c) Liquidity d) Tax benefit

e) Flexibility f ) Brand Name



6. How would you rate Reliance mutual fund when compared to the other

mutual Fund? (Rank them from 1 to 5, 1 being the Highest & 5 being the

lowest).

Reliance [ ]

HDFC [ ]

Franklin Templeton [ ]

UTI [ ]

ICICI [ ]

7. How do you rate the performance of reliance mutual funds

a. Excellent

b. Very good

c. Good

d . Moderate

8. How do you rate the services provided by reliance mutual funds

a. Very Satisfied

b. Satisfied

c. Neither Satisfied nor dissatisfied

d. Dissatisfied

e. Very Dissatisfied



9. While taking a investment decision what matters a lot ?

a. AMC

b. Performance

c. Consistency

d. Service

e. Fund Manager

10. Does RMF has a sizable impact as compared to its peers in MF industry?

a Yes

b. No

11.Is RMF is very helpful in analyzing and in making right choice of

investment?

a. Yes

b. No

c. To some extent

12. Do you think that RMF has a greater technological advancements when

compared to other AMC’s?

a. Yes

b. No

c. To some extent

d. No knowledge



13.How do you rate equity performance of reliance mutual fund in long run?

a. Excellent

b. Very Good

c. Good

d. Fair

e. poor

14. Any Suggestion for Your Financial Advisory Services.

--------------------------------------------------------------

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BIBLIOGRAPHY

Book:

Research Methodology Methods & Techniques by C R Kothari

Philip Kotler, Gary Armstrong; “Principle of Marketing” Prentice-Hall of

India 10th Edition

Reliance mutual fund Brochures and Manuals.

Websites.

www.relianceimutualfund.com

www.moneycontrol.com

www.amfi.com

www.amfiindia.com


http://www.amfiindia.com/

http://www.amfi.com/

http://www.relianceimutualfund.com/

