A PROJECT REPORT ON “CUSTOMER SATISFACTION TOWARDS RELIANCE MUTUAL FUNDS- SHIMLA”

A PROJECT REPORT ON “CUSTOMER SATISFACTION TOWARDS RELIANCE MUTUAL FUNDS- SHIMLA”

  ACKNOWLEDGEMENT

To carry out this research work I have got help from my parents who have given full support to carry out this research work

It is my privilege to express my indebtedness to respected teachers, parents, and friends without that help, this project could not have been completed. Their able guidance, encouragement, and valuable suggestions led my way pass easily through a most difficult period of the project.

Further, I would like to thank my guide Mrs./Mr. for his guidance & concern, without which it would not have been possible for me to complete this project.

I am highly indebted to the members of the faculty for the constant encouragement, valuable suggestion & requisite information & documents that were valuable for the completion of the project.

Date……….                                                           

 

DECLARATION

I hereby, . ......declare that I have done the training report on the topic “THE STUDY OF CUSTOMER SATISFACTION TOWARDS RELIANCE MUTUAL FUNDS

AT SHIMLA” is submitted in partial fulfillment of the requirements for the degree of MASTERS IN BUSINESS ADMINISTRATION in HIMACHAL PRADESH TECHNICAL UNIVERSITY. It is declared that it has an original piece of work& is worthy of the consideration for the degree of MBA.

~ Index |~

 

SNO	TITLE	PAGE NO
CHAPTER-1
1.1	Industry profile	7
1.2	Company profile	10
1.3	History of reliance on the company	11
1.4	About reliance mutual fund	12
1.5	Vision and mission statement	13
1.6	Reliance vision fund	14
1.7	Organizational hierarchy	16
1.8	Organizational structure	18
1.9	Product profile	19
1.10	Reliance media & entertainment fund	23
1.11	Functional departments	24
1.12	Functions of the finance department	24
1.13	Job description of people in the finance department	25
1.14	Administrative officer (finance)	25
1.15	Sales department	27
1.16	Marketing activities in reliance on mutual fund	28
1.17	HR Department	30
1.18	HR structure	31
CHAPTER-2
2.1	Research methodology	34
2.2	Need for the study	34
2.3	Data collection	35
2.4	Importance of this study	36
CHAPTER-3
3.1	Data analysis and interpretation	38
3.2.	Classification of respondents on the basis of awareness	39
3.3	Classification of respondents on the basis of highly-volatile market	40
3.4.	Classification of respondents on the basis of satisfaction with the different	41
3.5.	Classification of respondents on the basis of investing money	42
3.6.	Classification of respondents on the basis of ever	43
3.7.	If yes, in which type of funds of mutual fund do you want to invest	44
3.8.	Which are the primary source of your knowledge about mutual funds	45
3.9.	Classification of respondents on the basis of how to do you	46
3.10.	Classification of respondents on the basis of when you	47
3.11	Classification of respondents on the basis of which mutual funds	48
CHAPTER-4
4.1	Findings	50

4.2	Conclusion	51
4.3	Suggestions	52
BIBLIOGRAPHY
ANNEXURE
QUESTIONNAIRE

CHAPTER-1 INTRODUCTION

1.1    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 a 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 funds 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 of 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, UTIs 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

Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC

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 the 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 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 of 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 of the end of January 2003, representing broadly, the assets of the US 64 scheme, assured return, and certain other schemes. The Specified Undertaking of Unit Trust of India, functions under an administrator and under the rules framed by the 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

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

1.2    COMPANY PROFILE

Introduction

There are a lot of investment avenues available today in the financial market for an investor with an 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 services provided by many institutions. However, they prove to be costly for small investors. These investors 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 its 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 an opportunity for financial success that was once available to only a select few.

1.3      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 the equity cult in India in the late seventies and is regarded as an icon of enterprise in India. The Reliance group is a living testimony to his indomitable will, single-minded dedication, and unrelenting commitment to his goals.

The unit trust of India is the first mutual fund set up under the separate Act UTI ACT in 1963 and started its operations in 1964 with the issue of schemes US-641. In 1978 UTI was delinked from RBI and the industrial development bank of India (IDBI) took over the regulatory and administrative control in place of RBI.

In the year 1987, public sector banks like the state bank of India, Punjab national bank, Indian bank, bank of India, and bank of Baroda set up mutual funds.

Apart from the abovementioned banks' life insurance corporations (LIC) and General Insurance Corporation have set up mutual funds. LIC established its mutual funds in june1989 while gig had set up its mutual funds in December 1990. The mutual fund industry had assets under the management of RS 47,004 crore. With the entry of private sector funds, a new era has started in the mutual fund industry. e.g. Principal mutual fund.

1.4    About Reliance mutual funds

Reliance mutual funds are one of India’s leading mutual funds with average assets under management of Rs. 1,12,914 crores (April 14 – June 14 quarter ) and 52.69 Lakhs folios. (30^thjune 2014).

Reliance mutual fund is a part of the reliance group one of the fastest-growing mutual funds in India. RMF offers investors a well-rounded portfolio of products to meet varying investors' requirements and has a presence in 179 cities across the country Reliance mutual funds constantly endeavor 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 Up to 65.23% of its total issued and paid-up equity share capital, and the balance of its issued and paid-up equity share capital is held by other shareholders which include Nippon life insurance company (“NLI” ) holding 26% of RCAM’s total issued and paid-up equity share capital. NLI acquired the said 26% shareholding 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 an interest in asset management, life and general insurance, private equity and proprietary investments, stockbroking, and other financial services. 

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.

1.5    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 marketplace .at Reliance Capital Asset Management limited the implementation and observance of ethical processes and policies have 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 comparatively 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 on mutual funds are as follows:-

1.6    Reliance vision fund:

the primary investment objective of this scheme is to achieve long-term growth of capital by investment in equity and equity-related securities through a research-based investment approach.

Fund data type: Open-ended equity growth scheme. Date of allotment: 08-oct-1999

Inception date: 08-oct-1995 Minimum investment: Rs 1000

Net asset value as of 30^th 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-related 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 of 30^th 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-related instruments of small-cap companies and the secondary objective 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 Minimum investment: Rs 5000

Net asset value as of 30^th may 2014: Rs 16.43

 

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 related 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

 

Net asset value as of 30^th May 2014: Rs 56.40

Reliance on regular saving fund - debt option: the primary investment objective is to generate optimal returns consistent with a moderate level of risk. The income may be complemented by the capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in debt and money market instruments.

Fund data type: open ended open-ended scheme Date of allotment: 08 June 2005

Inception date: 09 June 2005 Minimum investment: Rs 500

Net asset value as of 30^th May 2014: Rs 17.49.

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

·       Financial functional unit

·       Marketing functional unit.

·       Operational functional unit.

1.1    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 resources, 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 advantages 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 organization as a whole. Infighting may cause projects to fall behind schedule.

·       Difficult management control:

Another potential disadvantage of the functional organization structure is that it can pose a challenge for top management to maintain control as the organization expands. As organizations get larger and top management needs to delegate more decision-making responsibilities in each functional area, the degree of autonomy may also increase, making coordination of activities more difficult.

1.8    ORGANIZATIONAL STRUCTURE

1.1    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 that 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 endeavor to generate returns, which could approximately be the same as that of the Nifty. The Investment Objective under the Sensex plan is to replicate the composition of the Sensex, with a view to endeavor to generate returns, which could approximately be the same as that of Sensex.

a.  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 unitholders and the secondary objective is the 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 the 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 holders and unit holders and the secondary objective is a growth of capital.

a.  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.

a. 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.

b.  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.

c.   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.

 

d. 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 risk. This income may be complemented by the capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in debt Instruments.

e. 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.

 

f.   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.

g. 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 a moderate level of risk. This income may be complemented by the 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 a 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 minds 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.

1.1         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.

1.2         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 lifeblood 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. The finance department consist of a team of professionals headed by the Manager Finance, having sufficient industry experience in the field of accounting, costing, taxation, company law, and financial management

OBJECTIVES OF THE FINANCE DEPARTMENT

 

1.     To manage & account for the financial resource of the organization, forecast its requirement in the future and plan accordingly, and check for deviation.

2.     Report the financial performance of the organization, to comply with the government rules and regulations.

1.3         FUNCTIONS OF THE FINANCE DEPARTMENT

 

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

 

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

 

2.     Receiving payments from customers and accounting for these funds.

 

3.     Preparations of sales budgets and revenue budgets and expenditure budgets on a quarterly basis.

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

 

5.     Preparing and filing quarterly and final income tax returns.

6.     Preparations and implementation of cost reduction and cost control methods.

 

7.     Conduct and coordinate internal and stationary audits.

 

8.     Perpetual stock verification and asset evaluation.

1.4         JOB DESCRIPTION OF PEOPLE IN FINANCE DEPARTMENT Responsibility of people in the finance department

Establishing and controlling the financial systems and administrative services of the organization, and providing financial information to the 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 organization so as to provide a clear insight into its financial condition.

·       Ensuring that the profits of the organization are protected through the establishment of effective financial controls; implementing and maintaining appropriate management accounting and reporting systems, budgetary controls, and expenditure procedures.

1.5         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 completed every year financial year. In keeping with the 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 completed within the time schedule. Implementation of inspection package in all our offices led to transparency by online report writing, acceptance of compliance, and closure process.

VIGILANCE

 

Special efforts were made to focus on the disposal of vigilance cases pending for more than one year. Besides expediting the 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 a 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, corporate governance standards, etc.

RISK MANAGEMENT

 

The 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 policyholders, and also ensures the interest of the policyholders and stakeholders.

1.6          Sales 

Sales management is a business discipline that is focused on the practical application of sales techniques and the management of 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 businesses. 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 the 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 marketers to analyze 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 they have done throughout the week. The management must sit with the sales team frequently to assess their performance and chalk out the future courses of action.

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)

The 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.

 

 1.7         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 that fulfill the needs of different segments of the society. As of 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 this purpose, training in a big way is conducted 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 the 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 are 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 are commonly referred to as “producers” in the insurance industry.

Agency Strength

 

The total number of agents in our role is 140280 as of 31.03.2011 as against 134485 as of 31.03.2012.

a) Agents’ Club Membership In order to motivate and recognize high performers amongst agents a premium club called the Corporate Club. The other 5 clubs were formed to recognize agents, who perform consistently year after year.

 

MEMBERS OF VARIOUS AGENTS CLUBS

 

Name of the Club

Corporate

Chairman

Zonal Manager

Divisional Manager

Branch Manager

Distinguished Agents

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.

a)        Chief mutual fund Advisor Scheme

 

The corporation introduced the above scheme with the objective of increasing its market presence through more agents by utilizing the capabilities of existing high-performing agents for organizational growth.

b)       Authorised Agents

In tune with the increasing customer expectation j select agents collect the renewal premium through “Premium Points”.

1.8         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 ways. Human beings can think, feel and give responses. Handling humans is more important for any business because human beings have crucial potential that may be very profitable for the business. And this potential can be developed to an unlimited extent if they are provided with the proper environment. So the function of managing men is as important as the 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 lab our, 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 hiring, firing, training, and other personnel issues. This article addresses both definitions.

 

 1.9         HR STRUCTURE CORPORATE HR:

Activities taken up by Corporate HR are:

 

·       Policymaking

·       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

HR FUNCTIONS

·       Talent acquisition

·       Talent development

·       Performance management system

·       Training

·       Carrier planning

·       Suggestion planninh

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 is two types of interview which is taken up at Reliance, firstly the Functional interview, and then the Functional Head and HR Head takes the interview.

INTERNAL source 

 

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. 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.

 CHAPTER-2

                                OBJECTIVES, SCOPE, AND RESEARCH METHODOLOGY

2.1  RESEARCH METHODOLOGY

 

Research Methodology is a way to systematically solve the research problems. It involves adopting various methods and techniques which are best suited for the research and study of the problem, for investigation and analysis of the problem starts with data collection from various sources i.e. primary and secondary sources, data analysis and interpretation, and finally the finding. The research methodology comprises two 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.

2.2  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 mutual fund schemes and also the 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's decisions and strategy also affect the customer satisfaction

RESEARCH OBJECTIVES:

 

·       The study level of satisfaction of customers towards Reliance Mutual Fund.

·       To find the customer’s preference for various options available in Reliance Mutual Fund.

·       To know the kind of benefits 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.

Research Design

 

The research design is a pattern or an outline of a research project. It is a statement of only the essence of a study that provides the basic guidelines for the detail of the project.

Research design stands for advance planning of the method to be used in their analysis, keeping in view the objective of the research and availability of staff, time and money.

Sample Technique

 

The sampling procedure refers to the technique which is used in selecting the items for the sample infect; this technique of procedure stands for the sample design itself. The sampling procedure for the study is convenient sampling.

2.3  DATA COLLECTION

There are several ways of collecting the appropriate data which differ considering in the context of money, costs, time, and other resources data can be collected through different sources.

Primary data

Primary data was collected through a survey method by distributing questionnaires to the different customers of reliance on mutual funds in the Bangalore branch

Secondary data

The secondary data collection includes a collection of data through sources like

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

 

2.     The NAVs are taken from AMFI & websites of the AMC under consideration

 

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

 

2.4  IMPORTANCE OF THIS STUDY

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

Ø  One of the mode of investing in mutual funds is SIP’s systematic investment plan is less risky to invest and every investor wants to invest on less price.

Ø  Mutual fund is totally dependent on NAV [net asset value]

 

Ø  Comparatively investors have limited risk since the investments are managed by the highly experienced and qualified fund manager

Ø  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

the objective of the Scheme will be realized, as actual market movements may be at variance with anticipated trends.

Ø  This study helps to know about the level of customers satisfaction and whether distributors are happy with the performance of Reliance Mutual Funds

LIMITATIONS OF THE STUDYØ  

ØTime constraints: due to less availability of time it may be possible that all the related aspects May not be covered in the project.

ØAnalysis is done with the limited availability of the data

CHAPTER-3

     DATA ANALYSIS AND INTERPRETATION

3.1 DATA ANALYSIS AND INTERPRETATION

 

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AGE

 

Table no 3.1

 

Serial no.	Age group	No. of respondent	percentage
1.	18-25	22	22
2.	25-23	32	32
3.	35-45	28	28
4.	45 & above	15	18
	Total	100	100

Source: Data collected through questionnaire method

Fig 3.1

INTERPRETATION

Hence it is concluded that the majority of respondents 32 percent are in the age group of 25-35 years.

3.2.  CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AWARENESS

 

Sr. No	Response	No.of respondents	Percentage
1	Yes	30	60
2	No	20	40
	Total	50	100

 

INTERPRETATION

Hence it is concluded that the majority of respondents i.e. 60% of respondents are aware of reliance on mutual funds.

3.3.  CLASSIFICATION OF RESPONDENTS ON THE BASIS OF HIGHLY VOLATILE MARKET, DO YOU THINK MUTUAL FUNDS ARE THE DESTINATION FOR INVESTMENT?

 

Sr.NO	Response	No. Of respondents	Percentage
1	Yes	35	70
2	No	15	30
	Total	50	100

 

INTERPRETATION

 

 

Hence it is concluded that the majority of respondents i.e. 70% of respondents think mutual funds are the destination for investment. 

3.4.  CLASSIFICATION OF RESPONDENT OF THE BASIS OF Satisfy With The Different Types Of Products And Services Provided By Reliance Mutual Funds?

Sr. No	Response	No. of respondents	Percentage
1	Yes	40	80
2	No	10	20
	Total	50	100

INTERPRETATION

 

 

Hence it is concluded that the majority of respondents i.e. 80% of respondents satisfy with the different types of products and services.

3.5.  CLASSIFICATION OF RESPONDENTS ON THE BASIS OF INVESTING MONEY, WHICH FACTORS DO YOU PREFER MOST?

 

Sr. No.	Response	No. of respondents	Percentage
1	Liquidity	15	30
2	Low risk	16	32
3	High return	9	18
4	Company reputation	10	20
	Total	50	100

 

INTERPRETATION

 

 Hence it is concluded that the majority of respondents i.e. 32% of respondents prefer the liquidity factor.

3.6.  CLASSIFICATION OF RESPONDENTS ON THE BASIS OF EVER INVESTED IN MUTUAL FUNDS?

 

Sr. No.	Response	No. of respondents	Percentage
1	Yes	30	60
2	No	20	40
	Total	50

 

INTERPRETATION

	Hence it is concluded that the majority of respondents i.e. 60% respondents invested in mutual funds.

 

3.7.    If yes, which type of funds of mutual funds do you want to invest

 

Sr. No.	Response	No. of respondents	Percentage
1	Fixed deposit	16	32
2	Mutual funds	4	8
3	Equities	10	20
4	Others	20	40
	Total	50	100

INTERPRETATION

 

Hence it is concluded that the majority of respondents i.e. 40% of respondents invest in other types of investments.

3.8. What ARE THE PRIMARY SOURCES OF YOUR KNOWLEDGE ABOUT MUTUAL FUNDS AS AN INVESTMENT OPTION?

Corresponding to your choice how would you rate their influence on your final mutual funds' purchase decisions? 1 is the lowest and 5is the highest rating

 

Sr. No.	Sources	No.of respondents	Percentage
1	Television	30	60
2	Internet	6	12
3	Newspaper	4	8
4	Friends	5	10
5	Sales	5	10
	Total	50	100

 

INTERPRETATION

 

 

Hence it is concluded that the majority of respondents i.e60% of respondents influence by television.

3.9.  CLASSIFICATION OF RESPONDENTS ON THE BASIS OF HOW YOU RATE THE RISK ASSOCIATED WITH MUTUAL FRIENDS?

 

Sr. No.	Response	No. of respondents	Percentage
1	Low	10	20
2	High	30	60
3	Moderate	10	20
	Total	50	100

 

INTERPRETATION

 

 

Hence it is concluded that the majority of respondents i.e60% of respondents associated with high risk in mutual funds.

3.10.  CLASSIFICATION OF RESPONDENTS ON THE BASIS OF WHEN YOU INVEST IN MUTUAL FUNDS WHICH MODE OF INVESTMENT WILL YOU PREFER?

 

Sr. No.	Response	No. of respondents	Percentage
1	One time investment	30	60
2	Systematic investment	10	20
3	Others	10	20
	Total	50	100

 

INTERPRETATION

 

 

Hence it is concluded that the majority of respondents i.e60% of respondents invest in one time in investment.

3.11.  CLASSIFICATION OF RESPONDENTS ON THE BASIS OF IN WHICH MUTUAL FUNDS YOU HAVE INVESTED?

 

Sr. No.	Response	No. of respondents	Percentage
1	SBIMF	20	40
2	UTI	10	20
3	RELIANCE	10	20
4	HDFC	10	20
	Total	50	100

 

INTERPRETATION

 

 

Hence it is concluded that the majority of respondents i.e40% of respondent invest in SBIMF.

CHAPTER-4

FINDINGS, CONCLUSION & SUGGESTIONS

4.1    FINDINGS

67% of the respondent's rate performance of RMF is Very Good, 27% rate excellent, and 6% rate Good . The majority of the respondents rate the performance of RMF as very good. (Table no. 2)

1.     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. The majority of the respondents rate the services provided by RMF as Good

(Table no. 3)

2.     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 analysing & making right choice of investments to the investors, 13% tell To some extent. Majority of the respondents tell Yes RMF is very helpful in analysing & 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.

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)

4.2    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.

4.3    SUGGESTIONS

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.

ANNEXURE

BIBLIOGRAPHY

 

 

Book:

 

Ø  Research Methodology Methods & Techniques by C R Kothari

 

Ø  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

QUESTIONNAIRE DEAR SIR/MADAM,

I am...........student of MBA semester at..........., I am doing project on “CUSTOMER SATISFACTION TOWARDS RELIANCE MUTUAL FUNDS AT SHIMLA,”. Please give your precious time for filling this detail.

PERSONAL DETAILS:

SECTION – A

a) Name                                                                    b) Gender

c)Address                                                                d) Profession

 

 

SECTION - B

1. Are you aware from reliance mutual funds?

a) Yes                                                            b) No

2)    In this highly volatile market, do you think mutual funds are destination for investment?

a)  Yes                                                            b) No

3)    Are you satisfied with the different types of products and services provided by the reliance mutual funds?

a)  Yes                                                           b) No

4)    While investing your money, which factor you prefer most? Anyone

a)  Liquidity                  b) Low risk

 

c) High return                d) Company reputation

5)    Have you ever invested in mutual funds?

a)  Yes                                                  b) No

6)    If yes, in which type of funds of mutual funds you want to invest?

a)  Tax saver funds                b) Index funds

c) Sectorial funds                   d) gold funds

7)    Which investment do you feel more profitable?

a)  Fixed deposit                       b) Mutual funds

c) Equities                                 d) Other

8)    Which are the primary sources of your knowledge about mutual funds as an investment option?

Corresponding to your choice how would you rate their influence on your final mutual funds purchase decisions? 1 is the lowest and 5 is the highest rating.

 

	1	2	3	4	5
Television
Internet
Newspaper
Friends
Sales

10)    How do you rate the risk associated with mutual funds?

a) Low                                      d) Moderate

c) High

11)    When you invest in mutual funds which mode of investment will you prefer?

       a) One time investment                           

   b) Systematic investment plan

         c) Other

12)    In which mutual funds you have invested?

a)  SBIMF

b)  UTI

c)  RELIANCE

d)  HDFC

e)  KOTAK

f)  ICICI

g)  JM MUTUAL FUNDS

h)  Other

Click here to download the office file