DECLARATION

I hereby declare that this Project Report is mainly based on the summer training undergone by me at Reliance Money. This is my original work and no part thereof has been submitted anywhere else for any other academic purpose. Date: Pankaj Jaiswal
MBA Programme Department of Business Administration Institute of Technology & Management Gorakhpur

PREFACE
Private sector is one of the fastest growing sectors in the country. After the Liberalization the Private industry still holds vast opportunities for young and experienced professionals. On the 1 life insurance side public sector life insurance Corporation of India is, of course, the largest player with a history of over 50 years. Reliance money - Anil Dhirubhai Ambani Group offers most dynamic web based trading environment to its customers .The Reliance Money stock trading websites uses special security features 'Security Token', which makes you online trading experience more secure without complexity. Reliance ADG provide the vast opportunities to the new aspirants of the business administration. The financial Sector is full of competition even if there are a lot of opportunities to the job in Reliance Money and It is the platform to go on the highest peak in the life of any coming one. Reliance Money is a single window that provide the multisystem facilities of the financial Products. Reliance Money provide many financial product on the single window. Reliance money deals with the product and Investment options are available in... Equity (Stock) Trading Mutual Funds Derivatives Forex Trading Commodity Trading IPO's Insurance

Chapter- I Introduction
2

CONTENTS
Objectives of the Study Scope of the Study Methodology Limitations Chapter-II Profile of the Company Organizational Structure Review of Performance Chapter- III Subject Matter of the Study Analysis of Data Chapter- IV Findings & Conclusions Suggestion & Recommendations Bibliography Appendix- Questionnaire

Chapter- I
1

Introduction Objectives of the Study Scope of the Study Methodology Limitations

Introduction
Customer satisfaction is a measure of how products and services supplied by a company can meet the customers expectations.

Customer satisfaction is still one of the single strongest predictors of customer retention. Its considerably more expensive to attract new customers than it is to keep old ones happy. In a 2 climate of decreasing brand loyalties, understanding customer service and measuring customer satisfaction are very crucial. There is obviously a strong link between customer satisfaction and customer retention. Customer's perception of Service and Quality of product will determine the success of the product or service in the market. With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. Customer expectations are the customer-defined attributes of your product or service you must meet or exceed to achieve customer satisfaction. There are many reasons why customer expectations are likely to change over time. Process improvements, advent of new technology, changes in customer's priorities, improved quality of service provided by competitors are just a few examples. 2

O bjective of the Study

The main objective of the study is: To know the expectations of those investors who invested in Reliance Money. To know about the services provided to the investors by Reliance Money. 1 The satisfaction levels of investors with the services provided by the Reliance Money. To know about the areas of Reliance Money where change is to be needed. To know the various factors that are very important in satisfying the customers needs and to know how Reliance Money is ensuring its customers satisfaction.

Scope of the Study

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

1 During the summer training the volunteer need to find out the corporate strategies of the running company and the mile stone which the company has covered during its journey. In the summer training, it is necessary for the student that he /she involve with the experience guys to get the knowledge about the company. That is how the company has got the success, Or if it is going in the loss, why. In my training period I have found that the reliance group is the biggest group in Indian companies. I felt that I can learn the more in the Reliance Mutual Fund Limited. Reliance Mutual Fund Limited is the part of the Reliance Capital Limited which is a growing company in the financial products. Reliance Anil Dhirubhai Ambani group is also deals in communication, energy, natural resources, media, and entertainment, healthcare and infrastructure.

M ethodology
Data for the survey is collected through: Primary source Visiting the organization (Observation Techniques) 1 Using structured questionnaire for the existing customers and for general public. Secondary Source Company Broachers Company Website Internet Sample size: Sample size for the survey is 100. Type of sampling: Stratified random sampling technique is used for collecting the primary data. The data is collected from General Public and also from Reliance Money customers, Gorakhpur. Methods used for analysis: Bar Charts and Pie Charts are the tools that will be used in analyzing the data.

Limitations of the Study

The time constraint was one of the major problem. Lack of interest among the investors in filling the questionnaire. There is lack of team spirit among the branch employees. 1 Services often delayed because of the technical problem in the complete network. Lack of information sources for the analysis part.

Kiosks are not properly placed at various locations.

Chapter- II
1

Profile of the Company Organization Structure Review of Performance Products of the Company
2

Profile of the Company

Relian ce Life Insurance Reliance General Insurance Reliance Money Reliance Consumer Finance Mutual fund Mutual Fund

R e liance Capital

Reliance money is a part of the Reliance Anil Dhirubai Ambani Group and is promoted by Reliance Capital, the fastest growing private sector financial services company in India, ranked amongst the top 3 private sector financial companies in terms of net worth. 1 Reliance money is a comprehensive financial solution provider that enables you to carry out trading and investment activities in a secure, cost-effective and convenient manner. Through reliance money, you can invest in a wide range of asset classes from Equity, Equity and commodity Derivatives, Mutual Funds, insurance products, IPOs to availing services of Money Transfer & Money changing. Reliance Money offers the convenience of on-line and offline transactions through a variety of means, including its Portal, Call & Transact, Transaction Kiosks and at its network of affiliates.

Some key steps of the company that are as..

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

this quote then we can find many but there is none like that of Reliance Money. The company which is today known as the largest financial service provider of India. Success S utras of Reliance Money The success story of the company is driven by 8 success sutras adopted by it namely trust, integrity, dedication, commitment, enterprise, hard work and team play, learning and innovation, empathy and humility. These are the values that bind success with Reliance Money.

Vision of Reliance Money

To achieve & sustain market leadership, Reliance Money shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality 1 services. In the process Reliance Money shall strive to meet and exceed customer's satisfaction and set industry standards.

Mission statement
Our mission is to be a leading and preferred service provider to our customers, and we

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

Dhirubhai - The Stock Market King

THE AMBANI MAGIC
Reliance Industries was listed in 1977 in one of the largest public stock offerings of its time and its annual shareholders meetings were so well attended they had to be held in a football stadium. 2 And Dhirubhai held his shareholders spellbound, paying high dividends and bonuses at a time when equities were seen as a low-return, risky investment. This made Dhirubhai Ambani a hero to shareholders. Original investors in the 1977 initial public offering have earned a compounded annual rate of return of 43 per cent.

ABOUT RELIANCE MONEY

Reliance Money is a group company of Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.

Reliance Money, the Broking and Distribution arm of Reliance Capital provides a single window for transacting in a wide range of asset classes, including Equity, Equity & Commodity Derivatives, Portfolio Management Services Wealth Management Services, IPO?s, Mutual Funds, Life & General Insurance, Money Changing and Money Transfer, Gold Coins. It is the largest broking and distribution company in India with over 2 million customers and 8,500 outlets across 4,250 locations. The average daily volume on the stock exchanges is Rs. 2,000 crores, representing approximately 3% of the total stock exchange volume. Reliance Money is promoted by Reliance Capital, the fastest growing private sector financial service company in India, ranked amongst the top 3 private sector financial services and banking companies in terms of net worth. RelianceMoney.com offers most dynamic web based trading environment to its customers. The new trading platform has many new features which basically fill up the gap between old online trading companies in India and their customers. The Reliance Money stock trading websites uses special security features 'Security Token', which makes you online trading experience more secure without complexity. 1 Stock Trading is available in BSE and NSE. Offline trading is also available through Reliance Money partners in every city and through phone by dialing 022-39886000.

Reliance ADA Group

2 1 1

ORGANISATION HIERARCHY
Re view of Performance
Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, consumer finance and other activities in financial services. Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance is India's fastest growing life insurance company and among the top 4 private sector insurers. Reliance General Insurance is India's fastest growing general insurance company and the top 3 private sector insurers. Reliance Money is the largest brokerage and distributor of financial products in India with more than 2.5 million customers and the largest distribution network. Reliance Consumer

finance has a loan book of over Rs. 15,000 crores at the end of June 2009. Reliance Capital has a net worth of Rs.6, 862 crores (US$ 1.6 billion) and total assets of Rs. 29,940 crores (US$ 4.6 billion) as of June 30, 2009 and over 36,000 employees. Money has increased its market share among private financial companies to nearly Convenient & effective Anytime & anywhere financial transaction capability. Launched in April 2007. It provides the Flat fees system. It has 2.2 million customers in 1 year of official launch. It has over 5,000 outlets across 700 towns/cities. Average daily turnover in excess of Rs 2,000 crores. Considering the entire life market, including the Rs. 12,890 crores booked by life insurance Corporation, Reliance life insurance market share works out to around 6.25%. The gap between Reliance life insurance and the second-in-line private insurer is vast. In fact, this scenario has led some analysts to wonder if the company is not a trifle too aggressive. But 2 others say this has more to do with the companies customer-centric focus, its pan-India presence and superior risk management and investment strategies. Reliance Money is not, however, resting on its laurels. Companys customer centric approach will be studied during the training period and the finding of the research work will definitely focus on the present condition & future requirement (if any) relating to products of company.

Board of Directors
An il Dhirubhai Ambani - Chairman
Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 50, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural Resources and Reliance Power. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company's management over the next

22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country's first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

Amitab h Jhunjhunwala - Vice -Chairman

2 Shri Amitabh Jhunjhunwala, 51, is a Fellow Chartered Accountant. He has vast experience in the areas of financial services and capital markets. Shri Jhunjhunwala was appointed to the Board on March 7, 2003 and was appointed Vice Chairman on March 20, 2006. He is a Director on the Board of Harmony Art Foundation and Reliance Anil Dhirubhai Ambani Group Pvt. Ltd.

Rajendra Chitale - Independent Director

Shri Rajendra P. Chitale, 46, an eminent Chartered Accountant, is the Managing Partner of M/s M. P. Chitale & Associates. He is a Director on boards of the National Securities Clearing Corporation Limited, Asset Reconstruction Company (India) Ltd, Hinduja TMT Limited, HTMT Global Solutions Ltd, Ambuja Cement Limited, SME Rating Agency of India Limited, Ishan Real Estate PLC and Reliance General Insurance Company Ltd. He is also a member of the advisory board of the Insurance and Regulatory Authority of India (IRDA). He has also served on the boards of Life Insurance Corporation of India, Unit Trust of India, SBI Capital Markets Ltd., National Stock Exchange of India Ltd. and Small Industries Development Bank of India.

Shri C. P. Jain
Shri C.P. Jain, 61, is the former Chairman and Managing Director of NTPC Ltd. (National Thermal Power Corporation). Shri Jain has an illustrious career spanning over four decades of contribution in the fields of financial management, general management, strategic management and business leadership. He is a fellow member of the Institute of Chartered Accountants of India with an advanced diploma in Management and is a law graduate. Shri C. P. Jain joined the

Board of NTPC in 1993 as Director (Finance), was elevated as Chairman & Managing Director in September 2000 and superannuated in March 2006. He is Chairman of the Global Studies Committee of World Energy Council (WEC), world's largest energy NGO with nearly hundred 2 member-nations. He has been on several important committees of the Government of India, latest being the 'Adhoc Group of Experts on Empowerment of CPSEs'. He was Chairman of Standing Conference of Public Enterprises (SCOPE) between April 2003 and March 2005. He is a Director on the Board of IL & FS Infrastructure Development Corporation and, is also a member of the Audit Advisory Board of the Comptroller and Audit General of India.

Chapter- III
2

Subject Matter of the Study Analysis of Data Subject Matter of the Study
What is Sales?
A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity. 3 A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price the seller is happy to part with ownership of or any claim upon the item. The purchaser, though a party to the sale, does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages

(consent and passing ownership) of the sale prior to settlement of the price, the sale is still valid and gives rise to an obligation to pay.

Sales Techniques
The sale can be made through

Direct sales, involving person to person contact Pro forma sales Agency-based Sales agents (real estate, manufacturing) Sales outsourcing through direct branded representation Transaction sales Consultative sales Complex sales Consignment Telemarketing or telesales Retail or consumer 2 Traveling salesman Door-to-door To tourists on crowded beach Request for proposal An invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service. An RFP is usually part of a complex sales process, also known as enterprise sales. Business-to-business Business-to-business sales are much more relationship based owing to the lack of emotional attachment to the products in question. Industrial/Professional Sales is selling from one business to another Electronic Web Business-to-business and business-to-consumer Electronic Data Interchange (EDI) A set of standard for structuring information to be electronically exchanged between and within businesses Indirect, human-mediated but with indirect contact Mail-order

What is Distribution?
Distribution (or place) is one of the four elements of marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for

use or consumption by a consumer or business user. The other three parts of the marketing mix are product, pricing, and promotion. 1 Contents The Distribution Channel Channels Channel Members The Internal Market Channel Decisions Managerial Concerns Channel membership Channel Motivation Monitoring and Managing Channels

The Distribution Channel

Chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

Channels
A number of alternate 'channels' of distribution may be available Distributor, who sells to retailers Retailer (also called dealer or reseller), who sells to end customers 1 Advertisement typically used for consumption goods Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from

televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas.

Channel members
Distribution channels can thus have a number of levels. Kotler defined the simplest level, that of a direct contact with no intermediaries involved, as the 'zero-level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor. In small markets (such as small countries) it is practical to reach the whole market using just one- and zero-level channels. In large markets (such as larger countries) a second level, a wholesaler for example, is now mainly used to extend distribution to the large number of small, neighborhood retailers or dealers. 1 In Japan the chain of distribution is often complex and further levels are used, even for the simplest of consumer goods. In Bangladesh Telecom Operators are using different Chains of Distribution, especially 'second level'. Various financial products of Reliance Money and their description are as follows:

Reliance Mutual Funds Demat Account Services Reliance Life Insurance Reliance General Insurance
2 Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai Ambani Group, is India's leading Mutual Fund, with average Assets under Management of Rs. 100,813 crores for the month of June 2009, and an investor base of over 8.7 million. Reliance Mutual Fund offers investors a well rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a presence in 380 cities across the country and constantly endeavors to launch

innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd.

The Concept of Mutual Fund

A mutual fund is a common pool of money into which investors place their contributions that are to be invested in accordance with a stated objective. The ownership of the fund is thus joint and mutual; the fund belongs to all investors. 2

Reliance Mutual Funds

Introduction To Mutual Fund Industry
The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry in the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets under Management (AUM) were Rs. 67bn. The private sector entry to the fund family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of 1,540 bn. Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking industry. The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling. The mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under.

First Phase - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the

Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the 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. 2

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

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

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The 2 Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase - Since February 2003

This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the

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

Mutual Fund Operation Flow Chart

2

Organization of Mutual Fund

There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund: Mutual funds in INDIA have a 3-tier structure of Sponsor Trustee AMC Sponsor is the promoter of the fund. Sponsor creates the AMC and the trustee company and appoints the Boards of both these companies, with SEBI approval. 2 A mutual fund is constituted as a Trust A trust deed is signed by trustees and registered under the Indian Trust Act. The mutual fund is formed as trust in INDIA, and supervised by the Board of Trustees. The trustees appoint the Asset Management Company (AMC) to actually manage the investors money. The AMCs capital is contributed by the sponsor. The AMC is the business face of the mutual fund. Investors money is held in the Trust (the mutual fund). The AMC gets a fee for

managing the funds, according to the mandate of the investors. Sponsor should have at-least 5-year track record in the financial services business and should have made profit in at-least 3 out of the 5 years. Sponsor should contribute at-least 40% of the capital of the AMC. Trustees are appointed by the sponsor with SEBI approval. At-least 2/3 of trustees should be independent. At-least of the AMCs Board should be independent members. An AMC of one fund cannot be Trustee of another fund. AMC should have a net worth of at least Rs. 10 crore at all times. AMC should be registered with SEBI. AMC signs an investment management agreement with the trustees. Trustee Company and AMC are usually private limited companies. Trustees oversee the AMC and seek regular reports and information from them. 1 Trustees are required to meet at least 4 times a year to review the AMC. The investors funds and the investments are held by the custodian. Sponsor and the custodian cannot be the same entity. R&T agents manage the sale and repurchase of units and keep the unit holder accounts. If the schemes of one fund are taken over by another fund, it is called as scheme take over. This requires SEBI and trustee approval. If two AMCs merge, the stakes of sponsors changes and the schemes of both funds come together. High court, SEBI and Trustee approval needed. If one AMC or sponsor buys out the entire stake of another sponsor in an AMC, there is a takeover of AMC. The sponsor, who has sold out, exits the AMC. This needs high court approval as well as SEBI and Trustee approval. Investors can choose to exit at NAV if they do not approve of the transfer. They have a right to be informed. No approval is required, in the case of open ended funds. For close ended funds investor approvals is required for all cases of merger and take over. Kothari Pioneer was the first private sector mutual fund company in India which has now

merged with Franklin Templeton. Just after ten years with private sector players penetration, the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund companies in India in which some are as below. Reliance Mutual Fund (RMF) ABN AMRO Mutual Funds Birla Sun life mutual Funds 1 HDFC Mutual Fund HSBC Mutual Fund ING Vysya Mutual Fund Prudential ICICI Mutual Fund Sahara Mutual Fund State Bank of India Mutual Fund Tata Mutual Fund (TMF) Kotak Mahindra Asset Management Company (KMAMC) UTI Asset Management Company Private Limited Standard Chartered Mutual Fund Chola Mutual Fund LIC Mutual Fund GIC Mutual Fund 2

Types of Reliance Mutual Funds

Reliance Growth Fund Reliance Vision Fund Reliance Banking Fund Reliance Diversified Power Sector Fund Reliance Pharma Fund Reliance Media & Entertainment Fund Reliance NRI Equity Fund Reliance Equity opportunities Fund Reliance Index Fund Reliance Tax Saver (ELSS) Fund

Reliance Equity Fund Reliance Long Term Equity Fund Reliance Regular Saving Fund Reliance Natural Resources Fund Reliance Infrastructure Fund
1

The Key Terms in Mutual Funds

Dividend Policy:
Dividend will be distributed from the available distributable surplus after the deduction of the divided distribution surplus after the deduction of the dividend distribution tax and the applicable surcharge, if any. The mutual fund is not guaranteeing or assuring any dividend. Please read the offer document for details. Further payment of all the dividends shall be in compliance with SEBI circular No. SEBI/IMD/CIR No. 1/64057/06 dated 4/4/06.

Applicable NAV:
Sale of units by reliance mutual fund: in respect of valid applications received up to 3 p.m. by the mutual fund alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable.

Repurchase including Switch-out:

In respect of valid applications received upto 3 pm by the mutual fund, same days closing NAV shall be applicable. In respect of valid applications received after 3 p.m. by the mutual fund, the closing NAV of the next business day shall be applicable. Daily net Asset Value(NAV) publication: The NAV will be declared on all working days and will be published in 2 newspaper. NAV can also be viewed on www.reliancemutualfund.com and www.amfiindia.com . 1

Tax Benefits to the mutual fund:

Reliance Mutual Fund is a Mutual fund registered with the securities & exchange board of India

and hence the entire income of the mutual fund will be exempt from income tax in accordance with the provisions of section 10(23D) of the income tax act, 1961. The mutual fund will receive all income without any deduction of tax at source under the provisions of section 196(iv) of the act. An exemption has been granted under the finance (No.2) act, 2004 to open ended equity oriented mutual funds from paying distribution tax on income distributed without any time limit, effective from 1 April 2004.

Securities transaction Tax: Name of Transaction Payable by Rate of Tax

Purchase and sale of equity shares or units of equity oriented mutual funds on a recognized stock exchange on delivery basis Both purchaser as well as seller 0.125% Sale on stock exchange of equity shares or units of equity oriented mutual funds on non- delivery basis Seller 0.025% Sale of derivatives reorganized stock exchange Seller 0.017% Sale of units of equity Seller 0.25% 2 oriented mutual funds to the mutual fund There are two types of investment in Mutual Funds. Lump Sum Systematic Investment Plan(SIP) Lump sum: In Lump sum the investment is only one times that is of Rs. 5,000. and if the investment is monthly then the investment will be 6,000/-. Systematic Investment Plan(SIP) : We have already mentioned about SIPs in brief in the previous pages but now going into details,

we will see how the power of compounding could benefit us. In such case, every small amounts invested regularly can grow substantially. SIP gives a clear picture of how an early and regular investment can help the investor in wealth creation. Due to its unlimited advantages SIP could be redefined as a methodology of fund investing regularly to benefit regularly from the stock market volatility. In the later sections we will see how returns generated from some of the SIPs have outperformed their benchmark.

Reliance SIP Insure

Reliance SIP Insure facility is an add on feature of life insurance cover under Group Term Insurance to individual investors opting for SIP in the designated schemes. 2 It helps to encourage individual investors to save & invest regularly through Systematic Investment Plan (SIP) and help to achieve their financial objective without any hindrance

What is the Facility?

Reliance SIP Insure provides free life insurance cover to investors at no extra cost. In the unfortunate event of the demise of an investor during the tenure of the SIP. The insurance company will pay for the balance amount towards the remaining unpaid SIP installments. Thus, the nominee* would be able to continue in the scheme without having to make any further contribution.. Investors long term financial planning and objective of investing through SIP could still be fulfilled as per the targeted time horizon, even if he/she dies prematurely.

Reliance SIP Insure- Benefits to the investor

The benefit of Long Term Equity Investment Equities provide relatively better returns among all asset classes over a longer period of time. 1 The benefit of Systematic Investment Plan: Inculcates Savings Habit, Rupee Cost Averaging & Eliminates the need to time the market Free Life Insurance Cover Helps to complete the planned investments Maturity Proceeds at NAV based prices Flexibility Wide choice of eligible schemes Convenience Auto Debit from 4 banks namely ICICI bank, HDFC bank, AXIS bank & HSBC ECS facility across 65 locations

Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding

Designated Schemes in which Reliance SIP Insure will be offered

- Reliance Growth Fund - Retail Plan Reliance Vision Fund - Retail Plan Reliance Equity Opportunities Fund - Retail Plan Reliance Equity Fund - Retail Plan Reliance Regular Savings Fund Equity option - Reliance Banking Fund - Reliance Pharma Fund - Reliance Media & Entertainment Fund - Reliance Diversified Power Sector Fund Retail Plan Under Reliance SIP Insure, the investors are provided life insurance cover without any extra cost under a Group Term Insurance. In the unfortunate event of the demise of an investor during the tenure of the SIP, the insurance company will pay for the balance amount towards the remaining 1 unpaid SIP installments subject to a maximum of Rs 10 lakhs (across all designated schemes/plans and folios)and the same is invested in the chosen scheme subject to the following conditions;

Eligibility
All individual investors enrolling for investments via SIP & opting for Reliance SIP Insure Only individual investors whose completed age is greater than 20 years and less than 46 years at the time of investment. In case of multiple holders in the any scheme, only the first unit holder will be eligible for the insurance cover.

Investment Details
Minimum Investment per installment: Rs.1000 per month & in multiples of Re 1 thereafter. There is no upper limit Minimum Period of Contribution: 3 years and in multiples of 1 year thereafter. Maximum Period of Contribution: 15 years OR till attaining 55 years of age, whichever is earlier (e.g., a person can register an SIP of maximum 10 yrs at the age of 45 yrs.) The insurance cover ceases when the investor attains 55 years of age. Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated Cheques shall not be accepted ) Amount of Life Insurance Cover Available: An amount equivalent to the aggregate balance of

unpaid SIP installments, subject to a maximum of Rs.10 lakhs per investor across all schemes / plans and folios will be invested in the Nominees* account This amount will be invested in the same scheme/s (under which the deceased investor has enrolled for SIP) at the applicable price based on the closing NAV on the date on which the cheque for insurance claim settlement is 2 received by the AMC from the insurance company, subject to completion of requisite procedure for transmission of units in favour of the nominee*. Reliance SIP Insure How does this work? An investor does a monthly SIP of Rs. 10,000 for 5 years in Reliance Growth Fund If he dies after a period of 3 yrs, then his Sum Assured= Unpaid SIP installments = 2 yrs (ie 24months) X 10, 000 = Rs 2, 40,000 This amount will be paid by life insurance company to SIP investors nominee account* with Reliance Mutual Fund and will be invested in Reliance Growth Fund (in the same scheme in which the deceased has earlier invested)

Commencement of Insurance Cover

The Insurance cover shall commence after waiting period of 90 days from the commencement of SIP installments. However, the waiting period will not be applicable in respect of accidental deaths. *Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding

Cessation of Insurance Cover

The insurance cover shall cease upon occurrence of any of the following: At the end of mandated Reliance SIP Insure tenure. i.e., upon completion of payment of all the monthly installments as registered. 2 Discontinuation SIP installments midway by the investor i.e., before completing the opted SIP tenure /installments. Redemption / switch-out of units purchased under Reliance SIP Insure before completion the mandated SIP tenure / installments In case of default in payment of two consecutive monthly SIP installments or four separate occasions of such defaults during the tenure of the SIP duration chosen.

Note -There is no provision for revival of insurance cover, once the insurance cover ceases as stated above Mutual Funds and securities investments are subject to market risks and there is no assurance and no guarantee that the Schemes objectives will be achieved. As with investments in any securities, the NAVs of the units issued under the Scheme can go up or down depending on the factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of future performance of the Scheme. Reliance Growth Fund, Reliance Vision Fund, Reliance Equity Opportunities Fund, Reliance Equity Fund, Reliance Equity 1 Advantage Fund and Reliance Regular Savings Fund are only the names of the scheme and do not in any manner indicate either the quality of the Scheme, its future prospects or returns. The Sponsor is not responsible or liable for any loss resulting from the operation of the Schemes beyond their initial contribution of Rs.1 lac towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. The NAV of the Schemes may be affected, interalia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. The Mutual Fund is not guaranteeing or assuring any dividends/ bonus. The Mutual Fund is also not assuring that it will make periodical dividend/ bonus distributions, though it has every intention of doing so. All dividend/ bonus distributions are subject to the availability of distributable surplus in the respective Scheme. For details of scheme features and scheme specific risk factors please refer to the scheme Offer Documents. Offer Document and KIM cum application form is available at all the DISCs/ Distributors of RMF/www.reliancemutual.com. Please read the offer document of the respective scheme carefully before investing. 2

Terms and Conditions

This facility offered only to the investors having bank accounts in selected cities which are specific in the form of the SIP. Submit the following document at least 21 working days before the first SIP date for ECS (Electronic clearing Service). The first SIP cheque should be issued from the same bank account which is to be debited under ECS for subsequent installments. The bank account provided for ECS (Debit) should participate in local MICR clearing. SIP auto debit facility is available only on specific dates of the month i.e. 2 nd or 10th or 18th or 28th. The investor agrees to abide by the terms and conditions of ECS facility of Reserve bank of India. An investor can opt for monthly or quarterly frequency. Only one SIP per month or per quarter is permitted per folio/account. Minimum investment amount monthly SIP option 60 installments of Rs. 100/each or 12 installment or Rs. 500/- each or 6 installments of Rs. 1000/- each and in multiples of Re.1/- thereafter. The gap between the 1st cheque/ installment & the 2nd cheque / installment should be at least 21working days. However subsequent cheques should have a gap of at least a month or a quarter depending upon the frequency chosen. 1

Advantages of Mutual Funds

Diversification
The best mutual funds design their portfolios so individual investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value.

Professional Management
Most mutual funds pay topflight professionals to manage their investments. These managers decide what securities the fund will buy and sell.

Regulatory oversigh t

Mutual funds are subject to many government regulations that protect investors from fraud.

Liquidity
It's easy to get your money out of a mutual fund. Write a check, make a call, and you've got the cash.

Convenience
You can usually buy mutual fund shares by mail, phone, or over the Internet.

Drawbacks of Mutual Funds

1 Mutual funds have their drawbacks and may not be for everyone:

No Guarantees
No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money.

Fees and commissions

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

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

Management risk
When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected.

Overview of Demat Account

2

Reliance Demat Account

In India, a Demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a

demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.

Procedure
Fill demat request form (DRF) (obtained from a depository participant or DP with whom your depository account is opened). Deface the share certificate(s) you want to dematerialize by writing across Surrendered for dematerialization. Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer / their R&T Agent. After dematerialization, your depository account with your DP would be credited with the dematerialized securities.

Reliance Money Demat Account Services

Reliance Money Transacting and Investing Simplified
Get ready to change the way you transact and invest in financial products and services. Whether you wish to transact in equity, equity & commodity derivatives, IPOs offshore investments or prefer to invest in mutual funds, life & general insurance products or avail money transfer and money changing services, you can do it all through reliance money. 2 Simply open a reliance money account and enjoy the convenience of handling all your key financial transactions through this one window.

Benefits of having a Reliance Money Account

Its cost effective You pay comparatively lower transaction fees. As an introductory offer, we invite you to pay a flat fee of just Rs. 500/- and 750/- and transact through reliance money. This fee is valid for two years or a specified transaction value . PLANS AOF Fee(Rs.) ACCESS Fee(Rs.) UPFRONT BROKERAGE VALIDITY (Whichever is earlier) Turnover Limit

Time Validity Turnover Validity Non-Delivery Turover Delivery Turnover A 750 500 1 Year Rs.2 Lac Rs.2 Lac Rs. 2 Lac B 750 1000 2 months Rs.1 Cr Rs.90 Lac Rs.10 Lac C 750 2500 6 months Rs.3 Cr Rs.2.7 Cr Rs 30 Lac D 750 5000 12 months Rs.7 Cr Rs 6.3 Cr Rs 70 Lac E 750 10000 12 months Rs.20 Cr Rs. 18 Cr Rs 2 Cr

Its offers single window access

Through reliance moneys associates, you can transact in equity, equity and commodities derivatives, offshore investments mutual funds, IPOs life insurance, general insurance, money transfer, money changing and credit cards, amongst others.

Its convenient
1 You can access reliance moneys services through The internet Transaction kiosks The phone (call & transact) Our all India network of associates On an assisted trade (through the call centre or our network of associates) a charge of Rs 12 per executed trade will be applicable.

Its Safe
Your account is safeguarded with a unique security number that changes every 32 seconds. This number works as a dynamics password to keep your account extra safe.

Its provides you a demat account

You get your own demat account with reliance capital at an annual fee of just Rs. 50/-.

Its provides you a 3-in-1 facility

You can access your banking, trading and demat account through a single window and transfer funds across accounts seamlessly.

It provide you value- added services

At www.reliancemoney.com, you get 1 Reliable research, including views of external experts with an enviable track record Live news updates from Reuters and Dow Jones

CEOs / expert views on the economy and financial markets Tools that help you plan your investments, tax, retirement, etc. in the personal finance section Risk Analyzer for analysis of your risk profile Asset allocators to build an appropriate investment portfolio Innovative use of technology for facilitating convenient trading/investments kiosks Reliance Money Provide the kiosks (similar to ATMs) Facilities, to their customer through which the customers can trade on available kiosks at the particular Branch of Reliance Money. The company is going to open these kiosks in the market as the ATMs of the Banks. Reliance Money provides 3 different trading platforms for equity trading:

Insta Trade Fast Trade Easy trade The Benefits

A safe and convenient way to hold securities; Immediate transfer of securities; No stamp duty on transfer of securities; Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; Reduction in paperwork involved in transfer of securities; Reduction in transaction cost; 1 No odd lot problem, even one share can be sold; Nomination facility; Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; Transmission of securities is done by DP eliminating correspondence with companies; Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc. Holding investments in equity and debt instruments in a single account. Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group is India's fastest growing life insurance company and among the top 4 private sector life insurers. Reliance Life Insurance has a pan India presence and a range of products catering to individual as well as corporate needs. Reliance Life Insurance has over 700 branches and 1, 80,000 agents. It offers 26 products covering savings, protection & investment requirements. Reliance Life Insurance

will endeavor to attain a leadership position in the market over the next few years, by further expanding and strengthening its distribution network and offering a diverse array of products to suit the varied and specific needs of individual customers. 1

Reliance Life Insurance

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

Types of Life Insurance Policies

Most Insurance policies are a combination of Savings & Protection. Products are formulated by either increasing or decreasing either one of these components. These combinations can be broadly divided into 4 groups ULIPs Term Insurance Endowment Policies : Whole Life; Unit Linked etc 2

The main reason to buy Life Insurance is to provide income replacement for your loved ones
Annuities & Pension

Life Stages in Life Insurance

1 1 2
25 -30 Married couples with no kids

3
18-25

(Unmarri ed) 30-45 years Couples with children 45 yrs and above Matur ed couple Retire d No dependents/ liabilities therefore need for insurance is less Introduction of dependents. Start of financial planning balance between asset creation & protection Peak earning age range. High asset creation & build up of liabilities. Critical stage for dependents Asset base build up & liabilities reduced/ taken care of. Need for retirement planning more than protection. Need for protection low. Greater need for regular income flow.

EnEdnodwomwemnte /n Ut /L UIPLsI P+ s Term AAt nenaucithie ss tage, requirements, responsibilities and Financial needs differ

4 5

AGE STATUS INSURANCE NEEDS SUGGESTED PRODUCTS 18yrs - 25yrs Unmarried 1.Go on a holiday 2.Buy a new Car 3.Set up a new house

4.Set up Interiors 5.Buy jewellery Short Term Endowment Product 25yrs -30yrs Married 1.High Debt, high expenditure Phase 2.Family dependency on your income 3.Low accumulated wealth 4.Need for Planning Requirement Temporary term or whole life Product 30yrs - 45yrs Matured couple 1.Retirement Planning 2.Wealth transfer or saving vehicles Profits or Unit Linked Endowment/ Deferred annuities

Life Stage Example

6
Hello, I am Philip, sailor. Have seen the world. Always on cruise and keep worrying about family and the loans. I need financial Protection if I do not return from one voyage Savera has just come to our lives. As proud parents, We need to protect her as well as create her own financial standing

Worked for almost 25 years, now want to live. I want something that will make my life Chinta-free after retirement.

TEAnenrdnmouwitmiesent

Products of Life Insurance

Life Insurance products are usually referred to as plans of insurance. These plans have two basic elements; one is the Death Cover providing for the benefits being paid on the death of the insured person within a specified period. The other is the Survival Benefit providing for the benefit being paid on survival of a specified period. Plans of insurance that provide only death cover are called Term Assurance Plans. 1 Plans of insurance that provide only survival benefits are called Pure Endowment Plans.

Term Life Insurance

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

Whole Life Insurance

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

ULIPs
A ULIP is a life insurance which provides a combination of Life Insurance protection and investment. Money can be invested in the following fund:- Equity Fund, Debt Fund, Money Market Fund (Liquid Fund) and Balance Fund.

Annuities
Annuities are practically the same as pension. Pension provides periodical payments to the employees, who have retired. They are paid as long as the recipient is alive. Annuities are called the reverse of Life Insurance.

Solutions for Individuals - RGI

1 Taking time out from your daily schedule to plan your future is a necessary task. You could do

with some help, but who can help you? Reliance Life Insurance is here with Solutions for Individuals, a series of plans that will help you make wise investments, protect your family, secure your childs future and even chalk out a plan for your retirement.

Insurance Plans
Protection Plans Protect your family even when youre not around by investing in Reliance Protection Plans. Choose a limited period plan or a lifetime protection plan depending on your needs. The latest Protection Plans are as below 1. Reliance Term plan 2. Reliance Simple Term plan 3. Reliance Special Term plan 4. Reliance Credit Guardian plan 5. Reliance Special Credit Guardian plan 6. Reliance Endowment plan 7. Reliance Special Endowment plan 8. R el iance Connect 2 Life plan 9. Reliance Whole Life plan 10. Reliance Wealth + Health plan 11. Reliance Cash Flow plan Savings & Investment Plans 1 Reliance Savings & Investment Plans help you to set aside some money to achieve specific goals in life, which means that you can enjoy life and provide for your familys daily needs . The savings and investment Plans are as below 1. Reliance Total Investment Plan Series I - Insurance 2. Reliance Wealth + Health plan 3. Reliance Automatic Investment plan 4. Reliance Money Guarantee plan 5. Reliance Cash Flow plan 6. Reliance Market Return plan 7. Reliance Endowment plan 8. Reliance Special Endowment plan 9. Reliance Whole Life plan 10. Reliance Golden Years Plan 11. Reliance Golden Years Plan Value 12. Reliance Golden Years Plan Plus 13. Reliance Connect 2 Life plan Retirement Plans

Invest today in Reliance Retirement Plans and save money to enjoy life even after retirement. You will never have to depend on another person or make any compromises to maintain your current lifestyle. The latest Retirement Plans are as below 1. Reliance Total Investment Plan Series II Pension 2. Reliance Golden Years Plan 3. Reliance Golden Years Plan Value 2 4. Reliance Golden Years Plan Plus 5. Reliance Wealth + Health plan 6. Reliance Automatic Investment Plan 7. Reliance Money Guarantee Plan Child Plans Save systematically and secure your childs future needs by investing in Reliance Child Plans. You can always be there for your child when he or she needs you. The Childs plans are as below 1. Reliance Child plan 2. Reliance Secure Child plan 3. Reliance Wealth + Health plan

What are the different fund options ?

We understand the value of your hard earned money and in our Endeavour to help you grow your wealth, we offer you 4 different tailor-made investment funds. You have the option to allocate your premium in these funds as you wish.

They are: 1 . Capital Secure Fund:

1 The investment objective of this fund is to maintain the value of all contributions (net of charges) and all interest additions. This fund offers steady return for little risk. The risk profile of this fund is low. Investments would be 100% in bank deposits, government bonds and debt instruments that offer financial security. Further, allocation in Capital Secure Fund for a policy is subject to a maximum limit of 40% at any time.

2 . Balanced Fund:
The investment objective of this fund is to provide you with investment returns, which exceed the rate of inflation in the long term while maintaining a low probability of negative investment

returns. Here, a major portion of your funds are invested in Fixed Securities while a small percentage is invested in the equity market, which is exposed to market movements. The risk profile of this fund is low to medium. Investments would be at least 80% in fixed interest securities and maximum 20% in equities.

3 . Growth Fund:
The investment objective of this fund is to provide you with investment returns, which exceed the rate of inflation in the long term while maintaining a moderate probability of negative investment returns. A greater portion of your funds are invested in fixed securities while a small percentage is invested in the equity market, which exposed to market movements. The risk profile of this fund is medium to high. Investment would be at least 60% in fixed interest securities and maximum 40% in equities. 1

4 . Equity Fund:
The investment objective of this fund is to provide policyholders with high exposure to equities and the possibility of investment returns, which generate a high real rate of return in the long term while recognizing that there is a significant probability of negative investment returns in the short term. This fund offers a totally equity based investment option. Your returns depend entirely upon the performance of the equity market. The risk profile of this fund is high. The higher risk of this portfolio means that expected returns would also be higher. Investment would not exceed 30% in bank deposits and may be up to 100% in equities.

Value of Units:
The market value of assets plus/less expenses incurred In the purchase/sale of assets plus current assets plus Any accrued income net of fund management charges Less current liabilities less provision

Unit Value =
Total number of units on issue (before any new units are allocated/redeemed.) 2

Who can Buy the product What is the policy term

Minimum policy term 5 years Maximum policy term 40 years

Flexible premium payment modes

Choose from five premium payment modes. a) Annual minimum premium is Rs. 10,000. b) Half yearly minimum premium is Rs. 5,000. c) Quarterly minimum premium is Rs. 2,500. d) Monthly minimum premium is Rs. 1,000. e) Single premium minimum premium is Rs. 25,000.

Charges under the plan:

1 . Premium allocation charge
For regular premium policies: 1 Minimum age at entry 30 days Maximum age at entry 65 years Maximum age at maturity 80 years Term of the policy as below

Years 5-9 10 - 14 15+

First year 10% 15% 20% Thereafter 5% 5% 5% (The premium allocation charge for single premium & top ups is 2%.)

2 . Policy Administration charges:

Rs. 40 will be deducted from your unit account each month.

3 . Fund Management Charges: Revision of charges:

1

Unit Linked Funds Annual Rate

Capital Secure 1.50% Balanced Fund 1.50% Growth Fund 1.75% Equity Fund 1.75% The fund management charges are subject to revision at any time, but hey will not exceed 2% p.a. for the capital secure fund and 2.5% p.a. for the other funds. Any changes made to the charges under this policy will be subject to IRDA approval.

4 . Partial Withdrawal Charges:

Rs. 100 per withdrawal will be deducted from your unit account.

5 . Switching Charge:
1% of the amount switched, with a maximum of Rs. 1,000/- per switch.

6 . Mortality Charges:
The Mortality charges, based on your attained age, are determined using 1/12 th of the charges are different.

7 . Surrender Charge:
This charge is levied on the unit fund at the time of surrender of the policy as under:

Number of years premiums paid Surrender charge as percentage of fund value

Less than 1 100% 1 50% 2 20% 3 and more NIL

8 . Service Tax Charge:

This charge will be levied on mortality, accident & disability benefit charges. The level of this charge will be as per the rate of service tax on risk premium levied by the government from time to time the correct rate of service tax is 12.36% this charge shall be collected along with charges.

How safe is your investment

The investments made in the unit funds are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of the fund and the factors influencing the capital market, and the insured is responsible for his/her decisions. The unit price is a reflection of the financial and equity/debt market conditions and can increase or decrease at any time due to this. Benefits payable under the policy will be made according o the tax laws and other regulations in force at that time. There are no guarantees for any fund of any kind under this policy. The benefit payable on maturity will be equal to the value of your units. The name in the funds in n way indicates the returns derived from them. 2 Please note that Reliance life Insurance company limited is only the name of the insurance company and Reliance market return plan is only the name of the unit linked life insurance policy and does not in anyway indicate the quality of the policy or its future prospects or returns

Free Look Period .

In case the policyholder disagrees with any of the terms and conditions of the policy, he may return the policy to the company within 15 days of its receipt for cancellation, stating his/her objections in which case the company will refund an amount equal to the non allocated premium plus the charges levied by cancellation of units plus fund value as on the date of receipt of the request in writing for cancellation, less the proportionate premium for the period the company

has been on risk and the expenses incurred by the company medical examination and stamp duty charges. If the risk acceptance date falls within cooling off period, then on cancellation RLIC shall pay fund value less of charges. Reliance General Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group and a Subsidiary of Reliance Capital, is one of the first non-life companies to get the license from the IRDA. Reliance General Insurance is India's fastest growing general insurance company and the top 3 private sector insurers. Reliance General Insurance has 200 branches across 171 cities and 1

Reliance General Insurance

over 20,000 intermediaries. Reliance General Insurance offers an exhaustive range of insurance products that covers most risks including Auto, Health, Property, Marine, Casualty and Liability. Insurance Indemnifies Assets & Income. Every Asset has a value and generates Income to its Owner. There is a normally expected Life-time for the Asset during which time it is expected to perform. If the Asset gets lost earlier, being destroyed or made Non-functional through an Accident or other unfortunate event the Owner is Prejudiced. Insurance helps to reduce CONSEQUENCES of such Adverse Circumstances which are called Risks Insurance is the SCIENCE OF SPREADING OF THE RISK. It is the system of spreading the losses of an Individual over a group of Individuals Insurance is a Method of sharing of financial losses of a FEW from a COMMON FUND formed out of Contribution of the MANY who are equally exposed to the same loss What is UNCERTAIN for an Individual becomes a CERTAINTY for a Group. This is the basis of All Insurance Operations. Thus INSURANCE CONVERTS UNCERTAINTY TO CERTAINTY

RGICL Products
Health
Individual Mediclaim Insurance Policy Group Mediclaim Insurance Policy Overseas Travel Care Insurance Policy 2 Reliance Health Wise Policy (inclusive of PED & Critical Illness) NEW - a specialized retail product

Personal Accident
Personal Accident Insurance (Individuals) Policy

Group Personal Accident Insurance

Fire
Standard Fire and Special Perils Policy Industrial All Risks Insurance Policy Consequential Loss (Fire) Insurance Policy

Engineering
Erection All Risks/Storage-cum-Erection Insurance Policy Contractors All Risks Insurance Policy Contractors Plant and Machinery Policy Machinery Breakdown Insurance Policy Machinery Loss of Profits Insurance Policy Boiler & Pressure Plant Insurance Policy Electronic Equipment Insurance Policy

Marine
1 Marine Cargo Insurance Policy NEW - Marine Turnover based Policy NEW - Multi Transit Policy

Motor
Private Car Comprehensive Insurance Policy

Liability
Directors and Officers Liability Insurance Policy Public Liability (Act) Insurance Policy Public Liability Insurance Policy Product Liability Insurance Policy Professional Indemnity Insurance Policy Workmens Compensation Insurance Policy

Packaged Policies For Corporates

Industry Care Insurance Policy Commercial Care Insurance Policy Office Package Insurance Policy Fidelity Guarantee Insurance Policy Burglary and Housebreaking Policy Money Insurance Policy Householders Package Insurance Policy 1 Shopkeepers Package Insurance Policy

Reliance Shopkeepers Package Policy

Key Advantage
Comprehensive coverage against various perils spread across different sections of the policy. The policy offers the flexibility to customize the policy by selecting appropriate covers.

The coverage is available at reasonably priced premiums. Insured has the option of selecting coverage either on the basis of market value or the reinstatement value. Discounts ranging from 5% to 20% for customers opting for four or more sections, for favorable claims experience and on renewal of the policy.

Scope of the cover

Coverage under this policy is spread across 11 optional sections, enabling you to choose from them and customize the policy Section 1A. Fire and allied perils for building Section 2B. Fire and allied perils for contents The physical structure of your shop (under section 1A) and the contents therein (under section 1B) can be covered against fire and allied perils. These compriseFire Lightning 1 Explosion / implosion Aircraft Damage Riot, Strike and Malicious Damage Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, and Inundation Impact Damage Subsidence and landslide including Rockslide demolition, construction, structural alterations or repair of any property or ground works or excavations Bursting and / or overflowing of water tanks, apparatus and pipes. Missile testing operations Leakage from automatic sprinkler installations Bush fire Terrorism cover (optional)

Policy exclusions
At reliance general insurance, we would like our policy to be as transparent as possible. To ensure that you do not face any unpleasant surprises when you make a claim, we would like you to know some of the major exclusions under the policy. Loss or damage due to war and nuclear perils Damage to property due to pollution and contamination Loss or damage due to wear and tear, gradual deterioration or slowly developing flaws Consequential loss of any kind Willful act or gross negligence on the part of the insured 1

Market Analysis
Markets

In tune with the global stock markets that began to recover from the second half of 2003; Indian stock markets too witnessed rapid growth. Indias two leading indices, the most popular BSE Sensex, and the one most used by the markets the National Stock Exchanges S&P CNX Nifty rose to record levels. Both primary and secondary market activity experienced sharp surge. Much progress was made in further strengthening and streamlining risk management, market regulation and supervision. A few aspects of the major developments in the Indias stock markets are described below. And the insurance sector is also play an important role in the growth of the financial market.

Market Structure
3 Indian securities market is fairly large as compared to several other emerging markets. There are 22 stock exchanges in the country, though the entire liquidity is shared between the countries two national level exchanges namely, the National Stock Exchange of India and the Bombay Stock Exchange Ltd. The regional stock exchanges are in pursuit of business models that make them viable and vibrant. Meanwhile, these exchanges have become members of the national level exchanges through formation of subsidiaries whose business is showing continuous growth and progress. The number of brokers in various stock exchanges rose from 6,711 in 1994-95 to 9,335 in FY06. The number of brokers in all the exchanges together peaked to 10,213 in the year FY01 but gradually declined thereafter when the regional stock exchanges began to lose business in the light of wide ranging market structure reforms introduced since then. In FY01, when the markets were in upswing, several regional stock exchanges were generating business owing to the availability of deferral products, and different settlement calendars prevailing at that time in these exchanges. For instance in FY01, the Delhi Stock Exchange registered cash market turnover of Rs 838.71 bn; Uttar Pradesh Stock Exchange, Rs 247.47 bn, Ludhiana Stock

Exchange Rs 97.32 bn, Pune Stock Exchange Rs 61.71 bn as against Rs 13,395.11 bn of the turnover at the National Stock Exchange and Rs 10,000.32 bn turnover at the Bombay Stock Exchange. With the abolition of the deferral products and introduction of uniform T+2 settlement cycle, the liquidity in these exchanges flowed to the national level system consisting of NSE and BSE.

Major Player in the Insurance Sector

There are many reputed companies in the market which provide the Insurance for living being and non living beings. The companies in life Insurance are as follows. 1

Life Insurer in Public Sector

Life Insurance Corporation of India

Life Insurer in Private Sector

Reliance life Insurance Company Limited ICICI Prudential Life Insurance Bajaj Allianz Life Insurance Tata AIG Life Insurance corporation Limited HDFC Standard Life Insurance Birla Sun Life Insurance SBI Life Insurance Kotak Mahindra old Mutual Life Insurance Aviva Life Insurance MetLife India Life Insurance ING Vysya Life Insurance Max New York Life Insurance Shriram Life Insurance Bharti AXA Life Insurance Co. Limited IDBI Forties Life Insurance Co. Limited Argon Religare Life Insurance Co. Limited

Major Broking house

1 During the analysis of the market it has been found that there are a lot of the brokeing house in the market which are providing the online trading facility to the individuals or the group of the individuals.

5paisa.com
You can now buy and sell shares on 5paisa.com with speeds comparable and at times better than NSE's NEAT Terminal. This speed and reliability comes only with perseverance of pioneer

backed by huge investment in technology! You can now buy and sell shares on 5paisa.com with speeds comparable and at times better than NSE's NEAT Terminal. This speed and reliability comes only with perseverance of pioneer backed by huge investment in technology. Advani Share Brokers Advani Share Broker, a reputed Bombay based on investment house, operates from India's financial hub, Dalal Street, since sixty years. It deals in equities, debt and derivatives on the Bombay Stock Exchange and the National Stock Exchange of India. AGROY Group of Companies Agroy group of companies is a well established name in the field of capital markets and financial services. AGROY Finance & Investment Ltd. (AFIL) is the group's flagship company engaged in capital markets as a premier financial and stock broking house. The company was formed in July 1992. Since then it has enjoyed patronage of a large number of valued customers and business partners. Anand Rathi Securities Limited 1 Anand Rathi Securities Limited provides financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance - all of which are supported by powerful research teams. India bulls India bulls is India's leading retail financial services company with 70 locations spread across 62 cities. While our size and strong balance sheet allow us to provide you with varied products and services at very attractive prices, our over 450 Client Relationship Managers are dedicated to serving your unique needs. Religare Securities Ltd. Religare Enterprises Limited (A Ranbaxy Promoter Group Company) through Religare Securities Limited, Religare Finvest Limited, Religare Commodities Limited and Religare Insurance Advisory Services Limited provides integrated financial solutions to its corporate, retail and wealth management clients. Provides various financial services which include Investment Banking, Corporate Finance, Portfolio Management Services, Equity & Commodity

Broking, Insurance and Mutual Funds. Jaypee Capital Services Ltd. Jaypee Capital Services Ltd. is a registered self-clearing member with National Stock Exchange and SEBI. It has the expertise and the experience to capitalize on daily stock movements and employ over 20 specialist traders certified by the NSE. 2 ICICI Direct Online share and mutual funds trading facility by the ICICI group. Arcade Share & Stock Brokers Arcadia group began its modest journey in 1995 and now Arcadia proudly boasts about membership to NSE,BSE, Depository Participant (CDSL),MCX,NCDEX .The philosophy of client servicing backed by all principal Indian Stock and Commodity exchange gives Arcadia edge over other players in the industry segment to offer value based services to its customers. Indianstockmarket.net Indianstockmarket.net is an effort to educate Indian investor by providing useful stock news, stock market websites, informative articles, resources to various investment guides.

Major Developments in equity brokerage industry in India

Corporate memberships Wider product offerings Greater reliance on research Accessing equity capital markets Foreign collaborations and joint ventures Specialized services/niche broking Online broking 2 Emerging challenges and outlook for the brokerage industry

Analysis of Data / B ody of T hesis

TABLE: 1

TABLE SHOWING DIFFERENT AGE GROUP OF THE RESPONDENTS

CHART - 1

Inference: The majority of the respondents i.e. 46% are from the age group of 36-54.
And the second largest age group is 18-36. And the remaining investors are from 54-72 age group. Table-2 1

AGE NO OF RESPONDENTS
0-18 0

18-36 40 36-54 50 54-72 10 72 & ABOVE 0

TABLE SHOWING NUMBER OF PEOPLE KNOWING ABOUT RELIANCE MONEY

Chart-2 Inference: Out of 100 respondents 74 customers were known about Reliance Money, while the rest were not knowing. Table-3

PREFERRED FUND STRUCTURE

Structure of the fund No of investors preferred
Open ended fund 64 Close ended fund 24 Interval funds 12 Total 100 CHART - 3 Inference: It is observed that 64 out of 100 that are 64% of investors are interested to invest their money in open ended funds the reason can be attributed to its convenience to enter and exit at any time. 24% investors preferred to invest in close ended funds because they are long term 1

RESPONSE NO OF RESPONDENTS
YES 74 NO 26 TOTAL 100 investors as well as they want some tax benefits. And the remaining 12% investors replied that they dont mind to invest in any funds including interval funds Table-4

INVESTORS SCHEME PREFERENCE Preferred fund scheme No of investors preferred

Growth scheme 52 Income scheme 16 Balanced scheme 32 Total 100 CHART - 4 Inference: In the above given graph it is showed that 52 out of 100 that are 52% of customers are interested to invest in growth schemes. 8 out of 25 that are 32% of customers are interested

to invest in Balanced schemes and the remaining 16% customers are preferred to invest in Income schemes. Table-5 3

INVESTORS FUND PREFERENCE Type of fund No of investors preferred

Tax saver funds (ELSS) 15 Equity 40 Balanced 15 Debt 20 Other 10 Total 100 CHART - 5 Table-6

TABLE SHOWING REPEATION OF INVESTMENTS MADE BY THE RESPONDENTS.

Chart-6 1

RESPONSE NO OF RESPONDENTS
YES 64 NO 36 TOTAL 100
No of Res ponde nt s
YES, 64 O, 36

YES N O

Inference: Out of 100 respondents 64 customers have already reinvested in the company, while the rest are waiting for a correct time to enter in the market for the second time. TABLE-7 1

GETTING MONTHLY / QUARTERLY STATEMENTS FROM TIME TO TIME Getting Monthly / Quarterly statements from time to time

No of Investors
Yes 70 No 30
CHART - 7 Inference: 70 out of 100 people getting monthly/quarterly statements from time to time 30 out of 100 people not getting monthly/quarterly statements from time to time . Table-8

RESPONDENTS RANKING ON THE CUSTOMER SERVICE OF RELIANCE MONEY

1

RANKS NO OF RESPONDENTS
ONE 34 TWO 16 THREE 26 FOUR 16 FIVE 8 Chart-8 Inference: Out of 100 respondents 34 ranked RELIANCE as one for customer service function. Table-9

RESPONSE REGARDING AREAS FOR IMPROVEMENT BY RELIANCE MUTUAL FUNDS

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AREAS NO OF RESPONDENT
CUSTOMER SERVICE 35 MONITORING OF FUND 38 AGENTS TRAINING 22 OTHERS 5 TOTAL 100 Chart-9 Inference: Out of 100 respondents 38 respondents want RELIANCE to improve at their fund monitoring function.

Table- 10

REDEMPTION SATISFACTION OF THE CUSTOMERS

Satisfaction about Redemption facilities No of Investors
Yes 65 No 35 Chart-10

1 Inference: Sixty five percent of the customers are happy with the redemption facilities of RMF.

Chapter- IV
Findings and Conclusion Suggestions and Recommendations Bibliography Appendix- Questionnaire
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F indings and C onclusion

The findings for the above research are as follows: It was found that majority of the investors i.e.46% are from the age group of 36-54. This is the group of middle age people who deserve to invest for their future financial needs. It was found that Out of 100 respondents 64 customers have already reinvested in the company, while the rest are waiting for a correct time to enter in the market for the second time. It was observed that Out of 100 respondents 62 investors have reinvested due to better returns and performance of funds. While 28 investors have voted for non performance of funds and services provided by the company. It was observed that Out of 100 investors 15 that is 15% of customers are preferred to invest in Tax saver funds. 40 that is 40% of investors are preferred to invest in index funds which give returns based upon respective indexes.. 45 that is 45% of investors are interested to invest in sectorial funds that means they are ready to take high risk but want high returns It was found that Out of 100 respondents 34 ranked RELIANCE as one for customer service function. It was found that Out of 100 respondents 38 respondents want RELIANCE to improve at their fund monitoring function 3

S uggestions and R ecommendations

The following suggestions are the outcome of the research and applications of these suggestions are not necessary:-

 The company should come up with innovative ways of service at their door steps this may be a costly affair but will surely give positive results in the long run. The company should take the initiative of training the advisors about the new funds from time to time which also makes the advisors connected to the company. The company should also emphasis on the monitoring of funds which directly relates to the returns of a specific fund. The company should come up with proper Hedge funds at this point of time where the market is highly volatile and the investors become very cautious at this level. The company should use brand ambassadors for example the CEOs of major companies where the company allocate the funds. This will probably ensure proper results. The company should focus on the advertising strategy and also the marketing of the product. The company should emphasis on creating an awareness about the SIP options which is always preferable when the market is volatile. 3 The company doesnt have enough tax saving plans or appropriate plans for tax so which they should come up with.

Bibliography
BOOKS MUTUAL FUNDS IN INDIA (PERSPECTIVES AND STRATEGIES) - Arindam Banerjee MARKET RESEARCH - Naresh Malhotra MARKETING MANAGEMENT - Philip Kotler WEBSITES www.reliancemutualfunds.com www.amfiindia.com www.mutualfundsindia.com www.ask.com www.faq.com www.bseindia.com www.nseindia.com www.investopedia/aboutus/html
www.valueresearchonline.com www.moneycontrol.com www.scribd.com www.google.com

Q uestionnaire
NAME: AGE: SEX: PROFESSION: MOBILE: Please () tick mark the appropriate answer:
1. Do you know about the Reliance Money?

A. Yes B. No 2. How did you know about Reliance money company? A. Print advertisement B. Television advertisement C. Web advertisement D. Relatives and Friends E. Brokers F. Others (please specify). 3. Your current annual income? A. <3, 00,000 B.3-5, 00,000 C. 5-7, 00,000 D. >7, 00,000 4. What is your overall satisfaction level with service of Reliance money? A. Excellent B. Good C. Average D. Poor 5. In what areas do you want Reliance Money to improve? A. Customer service B. Monitoring of Fund C. Agents Training D. Others_______________ . 6. Where you will invest your money in current scenario? A. Mutual Fund B. Insurance C. Fixed deposit D. Stock market E. Govt. bonds and securities 2 7. How stable is your current income source? A. Very unstable B. Moderately unstable C. Moderately stable D. Very Stable 8. How much long do you prefer your investment? A. < 6 Months B. 6 Months -1 Year C. 1- 3 Years D. > 3 years 9. Your expected rate of return? A. 0-10% B. 10-20% C. 20-30% D. 30& above 10. How much you can take risk? A. High B. Medium C. Low 11. How experienced are you at investing in bonds or bond mutual funds? A. < 1 Year B. 1 4 Years C. > 4 Year 12. Which mode of investment do you prefer most? A. Lump sum B. SIP C. Both 13. Have you ever invested in Reliance Mutual Funds? A. Yes B. No 14. Where do you rank RELIANCE MONEY on the basis of Customer Service?

A. One B. Two C. Three D. Four E. Five 15. By structure in which type of schemes did you invested? A. Open - Ended Schemes B. Close - Ended Scheme C. Interval Schemes 16. By investment objective in which type of schemes have you invested? A. Growth Schemes B. Income Schemes C. Balanced Schemes 3 17. In which type of fund you want to invest? A. Tax saver funds(ELSS) B. Equity C. Balanced D. Debt E. Other___________ 18. Did you repeat your investment after your initial investments? A. Yes B. No 19. Are you satisfied with the redemption facilities provided by RELIANCE AMC? A. Yes B. No 20. Are you getting Monthly / Quarterly statements from time to time? A. Yes B. No 21. Do you have Four Wheeler Car? A. Yes B. No

(Signature)
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