SUMMER TRAINING PROJECT REPORT

On

AN ANALYSIS OF INVESTMENT PREFERENCE

TOWARDS VARIOUS FINANCIAL PRODUCTS OF
RELIANCE SECURITIES

Towards partial fulfillment of

Master of Business Administration (MBA)
School of Management, BabuBanarasi Das University, Lucknow

Submitted by

Vishal Shukla
3rd Semester
ROLL NO. 1180672154

Session 2019-2020
School of Management

BabuBanarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India

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 CERTIFICATE FROM THE ORGANISATION

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 BONA-FIDE CERTIFICATE

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 DECLARATION

This is to declare that IVishal Shukla student of MBA, have personally worked on the

project entitled "AN ANALYSIS OF INVESTMENT PREFERENCE TOWARDS

VARIOUS FINANCIAL PRODUCT OF RELIANCE SECURITIES." The data

mentioned in this report were obtained during genuine work done and collected by me.

The data obtained from other sources have been duly acknowledged. The result

embodied in this project has not been submitted to any other University or Institute for

the award of any degree.

Vishal Shukla

Roll No. 1180672154

MBA 3rdSem

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 ACKNOWLEDGEMENT

The present work is an effort to throw some light on "AN ANALYSIS OF

INVESTMENT PREFERENCE TOWARDS VARIOUS FINANCIAL

PRODUCT OF RELIANCE SECURITIES" I give my regards and sincere

thanks to Dean Prof. Dr. SushilPandeyfor allowing me to do this research

report.

With deep sense of gratitude I acknowledge the encouragement and guidance

received by my faculty guide Ms. Ragini Dixit her earnest coordination and

valuable efforts. She constantly encouraged me right from the inception to

final preparation of my project. She has been a constant source of knowledge,

information, help and motivation for me through her depth knowledge and

experiences. The work would not have been possible to come to the present

shape without the able guidance, supervision and help to me by number

ofpeople.

I convey my heart full affection to all those people who helped and supported

me during the course, for completion of my Project Report.

Vishal Shukla
Roll No. 1180672154
MBA 3rd Sem

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 PREFACE
The summer training project program is the integral part of MBA curriculum during the

course of management; the research is expected to use and apply their academic knowledge

and gain a valuable insight into corporate culture with all its environment operational

complexities.

The research offers a valuable opportunity to the researcher to meet their academic

knowledge to the real world situation. I have undertaken commercial department to study

about the various activities “AN ANALYSIS OF INVESTMENT PREFERENCE

TOWARDS VARIOUS FINANCIAL PRODUCT OF RELIANCE SECURITIES”

In this report I have put my finest efforts to compile the data with utmost accuracy and hope

this report will give complete satisfaction regarding the various aspects of Marketing.

Vishal Shukla
Roll No. 1180672154
MBA 3rd Sem

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 TABLE OF CONTENT

Certificate iii

Declaration iv

Acknowledgement v

Preface vi

1. Introduction 1-14

2. Company Profile 15-59

3. Objectives of the study 60-61

4. Research Methodology 62-64

5. Data Analysis & Interpretation 65-83

6. Findings & Conclusion 84-85

7. Recommendations 86-87

10. Bibliography 88-89

11. Annexure 90-93

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 INTRODUCTION

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 INTRODUCTION
INVESTMENTS

Savings form an important part of the economy of any nation. Income is either spent or
saved. With the savings invested in various options available to the people, the money acts as
the driver for growth of the country. Indian financial scene too represents plethora of
avenues to the investors.

An investment can be described as “an asset that is purchased with the hope that it will
generate income or appreciate in the future”. In an economic sense, an investment is the
procuring of the goods that are not consumed today but are consumed in the future to
generate wealth. In finance, investment is the purchase of a financial product or item of value
with an expectation of favorable future returns.

Investments, unlike works of art, cannot afford the luxury of experimenting. Investing is not
guesswork. It takes more than just a ‘tip’; it needs training to plan, instinct to pick and sheer
intellect to make it work for the investor. Human nature is fickle, his wants keep changing.
To achieve future goals one need to channelize the existing resources and make fresh
investments.

An investment can be described as perfect if it satisfies all the needs of the investors. Most
investors and advisors spend a great deal of time understanding the merits of the thousands of
investments available in India. Little time, however is spent understanding the needs of the
investor.

THE INVESTMENT NEEDS OF AN INVESTOR

The investment needs of an investor are basically his everyday life needs converted into
financial terms. These include the normal living expenses, accommodation, rations, as well as
education, health, recreation transport, special occasions like marriages ,festivals etc.

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 These needs are defined over the rest of the life. These needs tend to remain the same over
the years. It is the current lifestyle and the lifestyle desired in future that determines the
stance of investors towards investments.

Most of the investors have eight common needs from their investments:

Wealth Life cover

accumulation

Comfort Income

factor Investors
need for
investments
Tax simplicity
efficiency

Preservation Ease of
withdrawal
of capital

(Fig-1)

 Wealth accumulation: People make investments in order to accumulate wealth. An

individual is considered affluent who has accumulated substantial wealth.
Accumulated funds provide greater control over the selection of investment options.
As the wealth of an investor increases they wants to hold an increasing share of their
assets in the form of long term, higher return instruments.

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  Comfort factor: This means how much you are comfortable, your peace of mind
while making an investment. Avoiding discomfort is probably a greater need.

 Tax efficiency: By minimizing the taxes, one can keep more investment working for
himself. Every rupee saved in taxes goes towards wealth addition.

 Preservation of capital: The basic purpose of preserving the capital is to prevent the
loss of an investment’s total value. The investors must ensure that their portfolio is
producing return that is at least equal to inflation. This is perhaps the strongest need of
the investors, who have suffered often due to failures.

 Life cover: The investors look for investments that offer good return with the
adequate life cover in order to avoid uncertainties and eventualities.

 Income: The ultimate need of each household is to earn a regular income by investing
their money at regular intervals. This will help them in meeting regular everyday
expenditure.

 Simplicity: Investment instruments are fairly complex, but investors need to

understand what is being done with their money. A financial planner or advisor
should deliver simplicity to investors.

 Ease of withdrawal: This refers to the withdrawal of the funds from the investments
as and when required. It is normally prompted by a need to spend capital, or a need to
change investments. Access to long term investment at short notice can only be had at
a considerable cost.

Perfect investment would have been achieved if all the above needs had been met to
satisfaction. But there is always a tradeoff involved in making investments.

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The Ideal Investment strategy should be a customized one for each investor depending upon
his risk appetite, his satisfaction level, return he is getting and his expectations. Accurate
investment planning gives accurate results.

INVESTMENT PLANNING

Investment Planning involves identifying the financial goals and assets throughout the life
and prioritizing them. This will help in realizing the future goals. Investment planning is
important because it helps in deriving the maximum profit from the investments. While
planning for investment, it is important to establish clear financial goals. It is also important
to identify the resources required to achieve those goals and the risk appetite which an
individual is willing to undertake.

Investment Planning also helps to decide upon the right investment strategy. Besides
individual needs, investment strategy would also depend upon age, risk tolerance, rate of
inflation.

Investment Planning also helps in striking a right balance between risk and returns. By
prudent planning, it is possible to achieve an optimal mix of risk and returns that suits
particular needs and requirements.

Investment means putting the money to work to earn more money. Investing even a small
amount can produce considerable rewards over the long term, especially if investing
regularly. But one needs to decide how much he wants to invest and where to invest.

SIX KEYS TO SUCCESSFUL INVESTING:

A successful investor maximizes gain and minimizes loss. There are six principles that may
help an investor in investing successfully.

 LONG TERM COMPOUNDING : the nest egg may get bigger and bigger :

This is the ever mounting effect. Compounding gives earnings on the earnings being
reinvested. The longer the money is put into an investment avenue, the greater the

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 return one can get. The thing is that the money left alone in an investment can earn
significant return over time.

 ENDURING SHORT TERM PAIN FOR LONG TERM GAIN: Riding out
market volatility :

The financial arena is very unpredictable; still, it’s important to remember two things:

1. The diversified portfolio of investments helps in reducing the risk and improving the
opportunities for gain.

2. During any given period of market or economic turmoil, some categories of assets or
even some investments tend to be less volatile than. Thus one can minimize risk by
diversifying holdings among different classes of assets as well as among different
individual assets within each class

 Asset Allocation : Spreading the wealth

Asset allocation is the process by which you spread your investment amount over
several categories of assets, usually referred to as asset class. These classes includes
stocks, bonds, cash (and equivalents), real estate and insurance products. By dividing
your investment amount among asset classes that do not respond to the same market
forces in the same way at the same time, you can minimize the effects of market
volatility while maximizing the return in the long run.

 Considering Liquidity :

Liquidity refers to how quickly you can convert an investment into cash without the
loss of principal. Liquidity needs must affect your investment choices. E.g.: if you
need money in next 1-3 years then invest in short term bonds, certificates of deposits
or savings account.

 Rupee cost averaging : Doing it consistently and often

Rupee cost averaging is the method of accumulating shares of stock or a mutual fund
by purchasing a fixed rupee amount of these securities at regularly scheduled intervals

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 over an extended time. When the price is high your rupee investment will buy less but
when the prices are low then the same investment will buy more shares.

 Review your portfolio: buy and hold , don’t buy and forget

Your portfolio’s long term success will depend on periodically reviewing it.

THE INVESTMENT PROCESS:

As investors, we would like all like to beat the market handily, and we would all like to pick
“great investments” on instinct.

However, while intuition is undoubtedly a part of the process of investing, it is just part of the
process. As investors, it is not surprising that we focus so much of our energy and efforts on
investment philosophies and strategies, and so little on the investment process.

It is far more interesting to read about how Peter Lynch picks stocks and what makes Warren
Buffet a valuable investor, than it is to talk about the steps involved in creating a portfolio or
in executing trades. Though it does not get sufficient attention, understanding the investment
process is critical for every investor for several reasons:

1. The investment process outlines the steps in creating a portfolio, and emphasizes the
sequence of actions involved from understanding the investors risk preferences to asset
allocation and selection to performance evaluation.

2. The investment portfolio provides a structure that allows investors to see the source of
different investment strategies and philosophies.

3. The investment process emphasizes the different components that are needed for an
investment strategy to by successful, and by so doing explain why so many strategies that
look good on paper never work for those who use them.

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FIVE STEP INVESTMENT PLAN

Investment is a science, not an art; we suggest a five stage investment plan that may be
practiced by investors looking for multiplying their hard earned money.

Need Analysis and Profiling

Internalizing and Evaluating the

Available Avenues
FIVE STEP
INVESTMENT
PLAN Mapping and Matching the Profile

Designing an Optimum Portfolio

Continuous Monitoring and Portfolio

Management

(Fig-2)

The first step is performing a Need Analysis check. The requirements and expectations of the
investor should be determined. The needs should be separated from the desires. The facts that
should be taken into account are their age, profession, number of dependents and their
income. By doing this check, the risk profile of the investor should be designed.

The next step would be internalizing the needs. Various investment options should be
analyzed. The risk-return profile of investment products is evaluated in this step. Every
investment product varies according to its return potential and riskiness. Investments giving a
high return are generally volatile and risky. The products giving a lower rate of return usually
are less risky. Therefore, all the available avenues should be evaluated.

The next step would be mapping the risk-return profile of the investor on to the investment
portfolio. The investment products are matched with the risk return profile of the investors.
All the investment alternatives that offer expected rate of return are selected for
consideration.

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Then an optimum portfolio is designed for the investor. The basket of investment avenues
selected in the previous step are given due weightage and appropriate amount of money is
invested in each of the investment avenue so as to get the maximum return with minimum
possible risk.

Finally a continuous watch on the portfolio is extremely important. Fundamental analysis of

the investment products done would only help in selecting the right product but the right time
of entry or exit from a particular stream is evaluated by doing a technical analysis.

DETAILS OF INVESTMENT STRATEGIES IN INDIA

INVESTMENT STRATEGIES IN INDIA :

A well-planned investment strategy is essential before having any investment decisions. An

investment strategy is centered on a risk-return tradeoff for a potential investor. High return
investment instruments such as real estate and mutual funds usually have more risks
associated with it than low return-low risk investment opportunities.

GOLD: Gold continues to be the most popular form of investment from a very long time. It
had been a safe haven for Indian investors since ages. People prefer to invest in gold because
the returns are usually high and above all gold is a very famous ornament. Even if they don't
get good returns they won’t face losses because their cosmetic purposes will be served.

Some tend to possess gold even as a matter of prestige. It is regarded to be a good source of
investment as it controls inflations and even helps to raise finances in the future.

Investing in gold is no doubt a profitable option as it can be quickly converted to cash. It is a

convenient as you can carry it easily wherever you go unless the quantity is very high. Since
the performance of gold markets directly proportional to stock market it becomes easy to
make calculations.

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STOCK MARKET:

Investing in a stock market is a complex and complicated task for the amateur or average
investor. Investing in the stock market requires a sound stock market investing strategy. The
focus of stock investing is on the return.
Stock market investing can be either conservative or aggressive. Thus it is always preferred
to weight the expected return against the risks that may be involved.
Indian stock markets particularly the BSE and the NSE, had been a preferred destination not
only for the Indian investors but also for the foreign investors.

2.3. REAL ESTATE:

Real estate investment involves the commitment of funds to property with an aim to generate
income through rental or lease and to achieve capital appreciation. Real estate refers to
immovable property, such as land, and everything else that is permanently attached to it, such
as buildings. When a person acquires real estate, s/he also acquires a set of rights, including
possession, control and transfer rights.

Investing in real estate’s involves lot of risks and at the same time it happens to be lucrative if
one is able to strike the right deal.

The real estate industry in India is attracting huge investments. Private equity players are
facilitating large investments, banks are disbursing loans to builders, and financial institutions
are floating real estate funds. These funds have been disbursed by investment bankers, banks,
and housing finance companies in India. It is expected that the cumulative investments by
various groups into Indian real estate market could rise to $1.5bn. Funds are giving returns to
the tune of 16-20%.

2.4. MUTUAL FUNDS:

A mutual fund is an investment vehicle that comprises a pool of funds collected from a large
number of investors who invest in securities such as stocks, bonds, and short term money
market instruments. The portfolio of a mutual fund is structured and maintained by fund
managers. Investors have professional fund managers that invest in the stock market
collectively on behalf of investors.

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Mutual Funds Investment has become a subject of great importance in the present context,
especially when all the investors are keen to diversify their investment to maintain a balance
between Investment Return and Investment Risk. Mutual Funds Investment not only provides
the customers with their much desired diversified investment portfolio, but also offers the
benefit of high liquidity. Investors are free to sell their mutual fund shares any time to get the
back the amount that was invested in the mutual funds.

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational setup of
a mutual fund.

(Fig-3)

Mutual funds

Mutual fund is vehicle that facilitates a number of investors to pool their money and have it
jointly managed by a professional money manager

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Sponsor

Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. The Sponsor is not responsible or liable for any loss or shortfall
resulting from the operation of the Schemes beyond the initial contribution made by it
towards setting up of the Mutual Fund.

Trustee

Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals).

The main responsibility of the Trustee is to safeguard the interest of the unit holders and
ensure that the AMC functions in the interest of investors and in accordance with the
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

Asset Management Company (AMC)

The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. At
least 50% of the directors of the AMC are independent directors who are not associated with
the Sponsor in any manner. The AMC must have a net worth of at least 10 crores at all times.

Transfer Agent

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the
Mutual Fund. The Registrar processes the application form, redemption requests and
dispatches account statements to the unit holders. The Registrar and Transfer agent also
handles communications with investors and updates investor records.

Mutual Funds Classifications

There are wide varieties of Mutual Fund schemes that cater to investor needs, whatever the
age, financial position, risk tolerance and return expectations. The mutual fund schemes can
be classified according to both their investment objective (like income, growth, tax saving) as
well as the number of units (if these are unlimited then the fund is an open-ended one while if
there are limited units then the fund is close-ended).

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FIXED DEPOSITS:

A fixed deposit account allows depositing money for a set period of time, thereby earning a
higher rate of interest in return. A fixed deposit gives higher rate of interest than a savings
bank account. These are generally a low risk prepositions as the commercial banks are
believed to return the amount due without default. By and large these FD’s are the preferred
choice of risk averse Indian investors who rate safety of capital and ease of investment above
all parameters.

GOVERNMENT BONDS:

A government bond is a bond issued by a national government denominated in the country's

own currency. These are usually risk free bonds because the government does not default in
payments. It can raise taxes to redeem the bond at maturity. The Central and State
governments raise money from the market through a variety of Small Saving Schemes like
National Savings Certificates, KisanVikasPatra, Post Office Deposits etc.

Interest rates offered by them are in the range of 7% - 9%.

2.8. CORPORATE BONDS:

Corporate bonds are issued by companies as a way of raising money to invest in the business.
Corporate bond is a promise to pay a specific sum of money at a fixed date in the in the future
along with the periodic payments of interest They often gives higher return than the
government or municipal bonds, because they are more risky. Corporate bonds generally
have a higher risk of default. Corporate bonds are traded on major exchanges and are taxable.
The bond holder receives interest payments and the principal, usually repaid on a fixed
maturity date.

MONEY – BACK INSURANCE:

Insurance in India is mostly sold and bought as investment products. They are preferred
because of their benefits like life cover, tax savings and satisfactory returns. This scheme
provides for periodic payments of partial survival benefits as follows during the term of the
policy, as long as the policy holder is alive. If policy holder does not pays his premiums on
time, his insurance cover will lapse.

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ENDOWMENT INSURANCE:

Endowment insurance is equivalent of a savings scheme. Investors have to pay the premiums
for a particular term, and at maturity the accrued bonus and other benefits are returned to the
policyholder if he survives at maturity.

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COMPANY PROFILE

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 COMPANY PROFILE

Reliance Group is among India's top private sector business houses serving over 250 million
customers across telecommunications, power, financial services, infrastructure, media and
entertainment, and healthcare sectors. Founded by the late ShriDhirubhaiAmbani (1932-
2002), the Reliance Group positively influences the lives of one in every 5 aspiring Indians
across more than 25,000 cities and towns and 400,000 villages.

The Reliance Group strongly believes that it has a pivotal role to play in shaping the destiny
of our great nation. Through its various consumer-facing businesses, the Group provides a
robust platform to every Indian to realize his/ her potential through its state-of-the-art
products and services.

Company Philosophy:

Vision

 To build a global enterprise for all our stakeholders, and

 A great future for our country,

 To give millions of young Indians the power to shape their destiny.

Value of:

Shareholder Interest: We value the trust of shareholders, and keep their

interests paramount in every business decision we make, every choice we
exercise

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 People Care: We possess no greater asset than the quality of our human capital and
no greater priority than the retention, growth and well-being of our vast pool of
human talent.

Consumer Focus:We rethink every business process, product and service from the
standpoint of the consumer – to exceed expectations at every touch point.

Excellence in Execution: We believe in excellence of execution – in large, complex

projects as much as small everyday tasks. If something is worth doing, it is worth
doing well.

Team Work:The whole is greater than the sum of its parts; in our rapidly changing
knowledge economy, organizations can prosper only by mobilizing diverse
competencies, skill sets and expertise; by imbibing the spirit of “thinking together” -
- integration is the rule, escalation is an exception.

Proactive Innovation:We nurture innovation by breaking silos, encouraging cross-

fertilization of ideas & flexibility of roles and functions. We create an environment
of accountability, ownership and problem solving –based on participative work
ethic and leading-edge research.

Leadership by Empowerment:We believe leadership in the new economy is about

consensus building, about giving up control; about enabling and empowering people
down the line to take decisions in their areas of operation.

Social Responsibility:We believe that organizations, like individuals, depend on the

support of the community for their survival and sustenance, and must repay this
generosity in the best way as they can.

Respect for Competition:We respect competition – because there is more than one-
way of doing things right. We can learn as much from the success of others as from
our own failures.

Corporate Governance:Great corporations, like individuals, are known for their unwavering
commitment to ethical values and principles. At Reliance Group, we remain steadfast in our

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resolve to uphold the highest standards of integrity, transparency and [Link] us,
corporate governance is not just about adhering to the formal letter of the law, but about
embracing the substantive spirit that lies underneath; to move beyond the statutory
obligations.

The key aspects of our corporate governance practice are:

o Monitoring of executive and director compensation

o Providing autonomy to the Board

o Implementing rigorous disclosure and transparency norms.

Corporate Social Responsibility: Organizations, like individuals, depend for their survival,
sustenance and growth on the support and goodwill of the communities of which they are an
integral part, and must pay back this generosity in every way they can...

This ethical standpoint, derived from the vision of our founder, lies at the heart of the CSR
philosophy of the Reliance [Link] we strongly believe that our primary obligation or
duty as corporate entities is to our shareholders – we are just as mindful of the fact that this
imperative does not exist in isolation; it is part of a much larger compact which we have with
our entire body of stakeholders: From employees, customers and vendors to business
partners, eco-system, local communities, and society at large.

For us, being socially responsible is not an occasional act of charity or that one-time token
financial contribution to the local school, hospital or environmental NGO. It is an on-going
year-round commitment, which is integrated into the very core of our business objectives and
strategy. Because we believe that there is no contradiction between doing well and doing
right. Indeed, doing right is a necessary condition for doing well.

Investor Relations – I.R. Principles:

Consistent with our commitment to the highest standard of corporate governance, each listed
company in the Reliance Group maintains a proactive investor relations program. The

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objective of these programs is to keep the investment community well informed about our
strategy, management actions, and business development. This is achieved by keeping regular
contact with analysts, investors, current and future shareholders, and the media.

The guiding principles of our investor relations programs are:

 Commitment and availability of top management

 Consistent and adequate information at all times

 Identical and simultaneous information for all investors

 Honesty, transparency, and service-minded

Glimpse at Reliance Group

In 1966 In 2016

Reliance Anil
Reliance Commercial
Reliance Industries Limited DhirubhaiAmbani
Corporation
Ventures Limited

Polyester Firm Public Company Private Company

Founder:- Chairman & MD:- Chairman:

DhirubhaiAmbani MukeshAmbani Anil Ambani

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 Headquarter:-
Started from Narsinatha Headquarter:- Mumbai, DirubhaiAmbani
Street in Masjid Bunder Maharashtra Knowledge Center, Navi
Mumbai, Maharashtra

Run with 85,000 strong Over 24,930 employed

Over 1,20,000 employees
workforce people

Reliance Anil DhirubhaiAmbani Group

Reliance Anil DhirubhaiAmbani Group (Anil DhirubhaiAmbani Ventures Limited) is an

Indian conglomerate, headquartered in Navi Mumbai, India. The company, which was
formed after DhirubhaiAmbani's business was divided up, is headed by his younger son Anil
Ambani. It has a market capitalisation of 890 billion (US$13 billion) and net assets
worth ₹1,800 billion (US$27 billion). The Reliance Group operates in over 20,000 towns and
450,000 villages in India, and abroad. Reliance Group has four listed companies. Reliance
Power, Reliance Communications, Reliance Infrastructure, and Reliance Capital, with a
shareholder base of over 12 million. The group provides telecom, financial services,
construction, entertainment, power, health care, manufacturing, defence, aviation, and
transportation services.

Group Companies:

Reliance Communication

Reliance Capital

Reliance Infrastructure

Reliance Power

Reliance Mumbai Metro

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 Reliance Roads

Reliance Defence

Reliance Big Entertainment

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Reliance Capital:

Reliance Capital, a constituent of CNX Nifty Junior and MSCI India, is a part of the Reliance
Group. It is one of India's leading and amongst most valuable financial services companies in
the private sector. Reliance Capital has interests in asset management and mutual funds, life
and general insurance, commercial finance, equities and commodities broking, wealth
management services, distribution of financial products, private equity, asset reconstruction,
proprietary investments and other activities in financial services.

Reliance Mutual Fund is amongst top Mutual Funds in India with over six million investor
folios. Reliance Life Insurance and Reliance General Insurance are amongst the leading
private sector insurers in India. Reliance Securities is one of India’s leading retail broking
houses. Reliance Money is one of India’s leading distributors of financial products and
services.

Reliance Capital has a net worth of Rs. 16,548crore (US$ 2.4 Billion) and total assets of
Rs.82,209crore (US$ 11.8 Billion) as on March 31, 2017.

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 Reliance Capital Limited (Subsidiaries: as on March 31, 2016)

Reliance
Capital Asset
Reliance Management
Capital Ltd. Reliance
Truestee Co. Securities Ltd.
Ltd.

Reliance Reliance
Exchangenext Commodities
Ltd. Ltd.

Reliance Reliance
Quant Capital Capital Wealth
Pvt. Ltd. Limited Management
(RCL) Ltd.

Reliance
Reliance
Money
Nippon Life
Percious
Insurance
Metals Pvt.
Company Ltd.
Ltd.

Reliance
Reliance Gilts General
Ltd. Insurance
Reliance Company Ltd.
Home Finance
Ltd.

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Reliance Securities

Reliance Securities, the broking arm of Reliance Capital, is one of the India’s leading retail
broking houses, providing customers with access to equities, derivatives, currency, IPOs,
mutual funds, bonds, and corporate F.D.s amongst others. The large array of financial
offerings helps customers fulfilling their investment objectives on one platform.

Reliance Securities offers secure online trading platform & investment activities in a cost
effective and convenient manner. To enable wider participation, it also provides the
convenience of trading offline through variety of means including Call and Trade, Branch
Dealing Desks and network of [Link] company is a corporate member of both
the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Focus on timely & error-free execution represents its core strength. Our best in class research
offerings, high degree of compliance with stock exchange regulations, ethical business
standards & strong risk management capabilities; Reliance Securities positions itself amongst
strong & innovative brands in the financial services space.

Moreover, Reliance Securities has over 8 lakh customers; having strong affiliate network
with over 1000 offices across India.

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Competition with:
Reliance Securities Limited
Sharekhan Ltd.
Parent Company Reliance Capital
Indiabulls Financial Services Limited
Category BFSI
Angel Broking
Sector Consumer Financial Services
ICICI Securities Ltd.
Slogan " Think Bigger, Think Better "
MotilalOswal Securities
U.S.P. Huge Capital base and backing from Reliance group
Reliance Securities Vs Kotak Securities
Type Private Company (NBFC)
Zerodha
Foundation Year 2005
India Info Line
Headquarter Mumbai
Karvy Securities
Area Served Worldwide
Fortis Securities (Religare)
Key People B. Gopkumar (Chief Executive Officer)
HDFC Securities

Market Analysis:

S.T.P.

Segment Brokerage

Target Group Urban and Rural Investors

Positioning Complete Investment and Stock trading Solutions

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SWOT Analysis

1) Innovative range of financial services

2) Diversified risk with investments in upcoming sectors like

infrastructure
Strengths

3) Largest E-broking house in the country

Has over 10,000 outlets in India and over 8 lakh clients

Weakness Penetration limited to semi-urban areas

1) Growing rural market

2) Earning Urban Youth

Opportunities
3) Educating people about the benefits of investments to increase
target audience

1) Stringent Economic measures by Government, RBI and SEBI

Threats
2) Entry of foreign finance firms in Indian Market

How Reliance Securities Scored Over Others?

1. Two Way Authentication:Reliance offers its customers with a token (an electronic gadget)
that generates a password, which are a third level of security in addition to the customer
log in and a password provided. The password generated by the token is valid only for a
period of 32 seconds. If the web page expires, for the fresh login, a new password
generated by the token has to be keyed in by the customer.

2. Lowest Brokerage:Reliance offers the lowest brokerage of 1 paisa which is very less with
respect to the other DPs in the market.

3. User friendly software:The portal offered is very easy to understand and use.

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4. FOREX and offshore investment:Reliance provides the offshore facility which no other
AMC is providing in the market.

[Link] research and news:Reliance offers news from the DOW JONES and REUTERS.
Seeking to bring share trading closer to consumers just like ATMs, Reliance Capital's stock
brokerage arm Reliance Securities launched Internet trading services through web-enabled
retail kiosks.

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 PRODUCTS OFFERED BY COMPANY:-

1) SMART TRADING PLATFORMS:

Our intuitive trading platforms offer browser-based as well as desktop-based trading access
for hassle-free trading across multiple asset [Link] seamless trading experience on our
state-of-the-art trading platforms –InstaPlus and Insta Xpress. Our exclusive integrated
platform – Trade Express and Mobile Trading platform – RMobile Xpress are developed
keeping in mind the trading needs of our esteemed customers.

Tick Pro:Big Data Analytics & Robot Insights Trading Platform

NEWS ANALYTICS: All the news & information is available with relevant insights on a
single screen

PEERS:Compare and analyses the most critical & indicative information among peer stocks

PORTFOLIO HIGHLIGHTS: Evaluate portfolio's risk tolerance, performance & exposure

in real time & get insights for informed decisions

SCREENERS: Spot the right stocks quickly by filtering & validating the information

TECHNICAL ALERTS & SIGNALS: Discover technical breakouts at a glance in real time
to identify & refine your trades

TRADE ANALYTICS:Analyses your trading decisions &behavior to let your own trading
data help you be a winner

WATCH LIST: View different asset classes with analytical parameters to trade smart
without switching screens

COMPANY FUNDAMENTALS: Know the historic financial statements & ratios of

companies for quick fundamental snapshot

COMPANY HEALTHSCORE:Analyse insights about a company's financial health by its

score & ranking basis multiple fundamentals; for value based trades.

Instaxpress:

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  Insta Xpress provides superfast trading experience in equity and derivatives.

 Multiple and customizable market watch

 Streaming quotes

 Low risk strategies

 Dynamic charts and indicators

 Online fund transfer and withdrawal facilities

 News and price analytics tool

 Facilitates basket trading

 Get access to historical trade data

Insta Plus:

Insta Plus is the advanced online trading platform that provides best-in-class internet trading
features and delivers a seamless and rich online trading experience to retail investors.

 Integrated market watch for Equities and Derivatives

 Live Streaming Quotes

 Real-time news and market coverage

 Know your margins before order entry

 Multiple payment gateways

 Integrated research with fundamental and technical analysis

 Seamless investments in Mutual funds, IPOs, Bonds, etc.

 Advanced charting tools.

RMobile Xpress

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  Customer can trade on the go with the Reliance Mobile Trading App.
This app can help you

 Place orders anytime & anywhere.

 Customizable and predefined watch list

 Get stock quotes & Live streaming Market Watch

 Fund section will have option to instantly transfer and withdraw funds.

 Instant access to real-time charts on BSE and NSE

 Portfolio Tracker – Track your portfolio

 View your order status & day/ net position real-time

 After market Order – You can now place orders after-market hours

 Widget – Track your watch list from home screen

 Convert and square off your open positions

 View balances & holdings

Trade Express

 A Java-based online trading platform to provide world class terminal-like

trading experience to our customers.

 Stream quotes from stock exchanges.

 Single screen for cash and derivatives that make hassle free trading and
investing in stocks

 Create multiple 'market watch' profiles.

 View holdings, check limits on one screen

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2) Competitive Brokerage:

At Reliance Securities, customer get cutting-edge trading services at the most competitive
rates. Opt from a host of brokerage plans that suit your stock trading pattern. Our brokerage
plans like RFixed, RMax, and RFlexi, amongst others, offer a great value proposition to
investors.

R Fixed

With R-Fixed plan, customer get the option to pay fixed cost for all your trades with the ease
of having access to our branch and a relationship manager who can help you take informed
decisions based on fundamental and technical research reports generated by our experienced
analysts.

Intraday
Segment Delivery Futures Options
Cash

Brokerage Rate 0.50% 0.05% 0.05% Rs 100 per Lot

Service tax, Securities Transaction Tax, Stamp Duty, Turnover charges and other government
/ statutory levies will be charged as applicable.

R Flexi:Trade more, save more

R Flexi is a sliding scale brokerage plan in which brokerage charge reduces with the increase
in trade volume. This plan offers you an opportunity to move from default slab to a lower
slab basis the turnover criteria; either in Delivery, Margin or Option.

R Fixed Online

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Reliance Securities, provide R-Fixed Online plan to our online customers who themselves
take charge of things and do not take any dealer support. You pay a fixed brokerage,
irrespective of the size of the transaction with seamless trading experience on our web
platforms.

Segment Delivery Intraday Cash Futures Options

Brokerage Rate 0.40% 0.04% 0.04% Rs. 100per Lot

Service tax, Securities Transaction Tax, Stamp Duty, Turnover charges and other government
/ statutory levies will be charged as applicable.

3) Research:

 Intensive research to get you the information you want.

 With a team of highly experienced analysts, we offer strategies that aim to

maximize profits as well as keep your risks to a minimum, irrespective of
market volatility.

 It offer a host of services, ranging from investment summaries, pre-market

reports, to futures and options (F&O) calls, to options strategies, and our
proprietary service, R-Model Portfolio.

 Boost the trading with research calls and reports.

RESEARCH CALLS:

Company provides pre market calls based on technical analysis and support, intraday trading
with live market calls and also provides positional calls when a breakout or breakdown is
observed in long term charts of stocks.

Research Calls helps in maximize profits while keeping Risk minimum.

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Company is in depth analysis covers macro-economic research reports, round- up of major
corporate affecting stock markets.

R-Model Portfolio:

R-Model Portfolio provides an effective diversification through a basket of stocks, which are
closely analysed and monitored by our research experts, equipping you to take the right
investment decisions at the right time.

Our portfolios, ranging from long term to short term, maintain good returns by optimizing
risk and protect you from sharp volatility. The stocks have given decent return in the past and
outperformed the benchmark indices.

Features:

 Hassle-free stock selection

 Timely review of portfolio

 Option to invest or re-align existing holdings

4) TRADING INSTRUMENTS: Diversify portfolio

It endeavors to help you take the right decisions and make your investments profitable.
Catering to both traders and investors, we help you choose from an array of premium trading
instruments, including equities, derivatives, currency, IPOs, mutual funds, bonds and
corporate FDs. Choose the one that suits investment needs.

EQUITIES:Invest in equities to enjoy good returns.

The equity market offers a range of investment opportunities for client to take advantage of
and enjoy high returns. Stay updated with the latest equity market news, limit losses with
Max Multiplier and profit from delivery-based buying and selling with Cash and Carry.

Benefit from Equities

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  Delivery Cash: We offer delivery-based stock recommendations for long-term
investments to avoid daily volatility in the stock market.

 Trading Intraday: Based on market movement, we provide intraday live calls to help
you trade efficiently and make profit.

 After Market Orders (AMO): We give you an option to place orders even during non-
trading hours.

 Shares as Collateral: We give you the opportunity to trade using demat shares as
collateral.

 Competitive Tariffs: Choose from our customized tariff plans that are designed to suit
your profile.

 R-Model Portfolio: Invest in a portfolio of stocks that are hand-picked by our team of
experts.

Initial Public Offering:(IPOs)A Safer Entry into Dalal Street

Initial public offering (IPO) is beneficial for an early adopter, to enter the market. IPOs are
issued by companies to produce additional capital in order to fund new projects or to carry
out expansion. They can also lead to increase in visibility and enhance the company's image.

Offer for Sale:

Offer for Sale (OFS) facilitates promoters of listed companies to dilute/offload their holding
in listed companies in a transparent manner with wider participation through an exchange
[Link] shall be as per the trading hours of the secondary market and shall not exceed
one trading day. The size of the offer shall be a minimum of Rs.25 crores with 100% upfront
margin.

Mutual Funds:Diversified and Affordable

Reliance Securities is empanelled with all leading fund houses and also has a dedicated
mutual fund desk, which, along with our research team, ensures the growth of our client's
investments.

Derivatives:Optimal combination of risk and returns

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A derivative is an instrument which derives its value from an underlying asset i.e. Equity.
Through the use of futures and options, it is possible to partially or fully transfer price risks
by locking-in asset prices. However, by locking in asset prices, derivative products minimize
the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-
averse investors. Market participants are hedgers, speculators and arbitrageurs.

REGULAR DERIVATIVES NEWS:

Want to trade on leverage? Then, derivatives are meant for you. Take advantage of our
reports to make maximum profits out of market movements; use our unique products to take
advantage of intraday and long-term position benefits. Our team of experts help make
informed investment decisions.

Derivatives Expertise

Choose from our wide range of derivative products that offer futures and options contracts
based on Equities, Indian/Global Indices and Volatility.

It also provides valuable information about the prices and expected price fluctuations of the
underlying assets.

 Technical and derivative analysis: Our team of experts provides a combined analysis
report to give excellent results.

 Smart Option Strategies: We help our customers to realize good returns by optimizing
risk and protect them from sharp volatility.

 Market Trends: Understand market trend basis Open interest and volume to cash-in
the right opportunity.

 Heatmap: Track the performance of the market based on built-up details and price
movement.

Currency:Trade in Global Currencies

Horizon of currency market has broadened in the recent past. The potential for profit in
currency trading has proven the perception of foreign exchange being a lucrative asset class.
Buying or selling currency futures simply involves putting in the margin money.

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Trade in Currencies

 Unique opportunity to diversify your portfolio due to its high volatility

 Designed for hedging purposes thereby protecting risk associated with uncertainties

 High volatility and liquidity

CORPORATE FDS:

Corporate Fixed Deposits (FDs) are fixed deposits in which client can deposit his savings for
a fixed period of time with a company at a prescribed rate of interest. When the period of
deposit elapses, he will be entitled to the interest on the deposited amount. The rate of interest
on Corporate FDs is normally higher than that of normal bank FDs.

Corporate FDs are best suited for investors who want to earn fixed returns on their
investments, but do not want to take the risk of vagaries of the stock market.

HOW TO CHOOSE CORPORATE FDs

Companies have listed down four parameters that guide you in choosing the right FD to
invest in.

 Credit Rating: Higher the ratings, more secure will your investment be.
Hence, always choose FDs with a high rating.

 Company Details: Check the financial health of a company before investing

and try to find out why the company is raising money and where it is going
to be used.

 Repayment History: Verify if the company has paid regular dividends or

defaulted on payment to deposit holders in the past.

 Taxation: Interest income from company FDs is taxable. Tax deducted at

source (TDS) will be deducted if the interest on a company FD exceeds Rs.5,
000 in a financial year.

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STOCK LENDING AND BORROWING (SLB):

S.L.B is a medium for lending and borrowing securities at a certain price. Investors who have
‘idle’ shares can earn good returns by lending their stocks to borrowers. Similarly, traders can
borrow shares for short span of time from lender for doing reverse arbitrage, plain short on
stocks, etc.

Benefits from SLB:

 Lender can earn Lending fee on their existing holdings.

 Borrower can grab the reverse market trading opportunities.

 Unlike selling, Lending does not incur short-term capital gain tax.

 Corporate actions like Dividends/Bonus are transferred to Lender only.

HOW SLB WORKS

 Anyone who has securities on which derivatives are available on the NSEFNO
segment can lend it on exchange platform.

 Price determination of Lending fee is based on Lender/Borrower Bid/Ask prices.

 Lent stocks will be auto picked from the Demat account of the lender and transfer
back on the pre-decided expiry date.

 Borrower will receive the stocks in Demat account and transfer back on the expiry
date.

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 ORGANIZATIONAL STRUCTURE

National Head

Zonal Zonal Zonal

Head Head Head
Zonal Head

Regional Regional Regional

Head Head Regional Head Head

Cluster
Cluster Head Cluster Head Head

Centre
Manager Centre
Manager

BDEs BDEs BDEs

38 | P a g e
Advantages offered by Reliance Securities over other companies:

 Cost Effective

 Convenience

 Security

 Single Window for Multiple Products

 3 in 1 Integrated Access

 Demat Account with Reliance Capital

 Other Services like fundamental research, positional call, live news, etc.

Value Added Benefits:

A. Superior Research- Our highly qualified and trained equity research cell
offers you comprehensive research reports, trading strategies, daily calls and
stock picks, enabling you to make the right investment decisions and
maximizing your profitability. In addition, we offer you tools such as the R-
Model portfolio where the decision to pick the right stocks for you will rest
with our highly qualified research team.

B. Wide range of investment options- Our investment options include equity,

derivatives, currency, IPO, mutual funds, bonds and corporate fixed deposits.
Our innovative products, which include delivery and leveraged intraday
products, regular stock purchase plans, and after-market orders, maximise
your buying power and help you boost your returns.

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 C. High-speed and user friendly trading platforms- Our state-of-the-art, super-
fast, user-friendly and secure trading platforms such as InstaPlus and
InstaXpress, offer seamless, hassle-free and enhanced trading experience to
customers.

D. Support services- We have a dedicated Call and Trade desk at your disposal,
so you can place orders even when you are not online. Our tracking system
enables you to track your portfolio with ease.

Understanding the prospect’s needs and persuade him to buy a plan of life insurance that suits
his interests best.

 Complete the formalities:- paper work, medical examination, which is necessary to

get the policy expeditiously.

 Keep in touch to ensure that changing circumstances are reflected in the arrangements
relating to premium payments, nomination and other necessary alterations.

 Facilitate quick settlement of claims.

 Be totally honest with both the prospect and the insurer.

 Not to induce prospects to submit wrong information.

PRODUCT OFFERING

1. Trading Portal (with almost negligible brokerage )

 Equity Broking

 Commodity Broking

 Derivatives ( Futures & Options )

 Offshore Investments (Contract For Differences)

 D-Mat Account.

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 2. Financial Products

 Mutual Funds

 Life Insurance

 ULIP plan

 Term Plan

 Securities Back Plan

 General Insurance

o Vehicle/Motor Insurance

o Health Insurance

o House insurance

 IPO’s

 NFOs

3. Value-Added Services

 Retirement Planning

 Financial Planning

 Tax Saving

 Children Future Planning

4. Credit Cards

PRODUCT FEATURES;

DEMAT ACCOUNT

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There are many broking houses doing business in India and they charge a brokerage on every
transaction made online or offline. (Buying and Selling are treated as separate transaction).
Reliance Securities’ advantage over others is that it’s charging the lowest brokerage in the
market which is just 1 paisa on every executive trade irrespective of the volume traded.
Reliance Securities, the brokerage and distribution arm of Reliance ADA Group, aims to tap
investors in the smaller towns and cities through a flat fee structure. The current leaders in the
retail broking segment like ICICI Direct, India Infoline and India bulls offer a ‘pay per use’
model where the customer pays a percentage of the amount transacted by him. Reliance
Securities’ brokerage rates are quite competitive.

The new wonder is Reliance Securities’ pre-paid card for stock market brokerage. Reliance
Securities, the financial services division of Anil DhirubhaiAmbani Group-promoted
Reliance Capital, is bringing to the market pre-paid cards in denominations of Rs500,
Rs1,350 and Rs2,500 with validity period of two months, six months and twelve months
respectively.

These cards would offer brokerage at one-third of the rate being charged by institutional and
individual brokerage houses. Sample this. For a pre-paid card worth Rs500, an investor can
trade up to Rs90 lakh in futures and option segment or can undertake intra-day trade of
similar amount. Besides, an investor can undertake a delivery-based activity of Rs10 lakh.

The Rs1350 worth pre-paid card, total trading limit would reach Rs 3crore, of which Rs
2.70crore is for the F&O segment and balance Rs30 lakh for delivery-based activities.

For Rs2500 pre-paid card, total trading limit is fixed at Rs16crore, that include F&O limit of
Rs15.40crore and balance Rs 60 lakh for delivery-based broking.

Converted to percentage terms - Reliance Securities offers most competitive brokerage

rates - 0.01% for delivery trades and 0.001% for non-delivery trades (fixed fee of Rs500/- for
delivery trades up to Rs10lacs and/or non-delivery trades up to Rs 1crore). Industry rates
vary between 0.4% to 0.85% for delivery trades and between 0.05% and 0.10% for non
delivery trades. Target low level of retail penetration in India - less than 3 per cent of
household financing savings makes it into equity markets. Reliance Securities consumers can
trade in equities, commodities and offshore Investments , IPO’s, Mutual Funds, Insurance,
Securities transfer and Securities Changing - all through single window, both off-line and
online.

42 | P a g e
Reliance Securities has already tied-up with CMC Capital Plc UK to offer offshore
Investment products to Indian consumers as per guidelines.

1. Two way authentication: Reliance offers its customers with a token (an electronic
gadget) that generates a password, which are a third level of security in addition to
the customer log in and a password provided. The password generated by the
token is valid only for a period of 20 seconds. If the web page expires, for the
fresh login, a new password generated by the token has to be keyed in by the
customer.

2. Lowest brokerage: Reliance offers the lowest brokerage of 1 paisa which is very
less with respect to the other DPs in the market.

3. User friendly software: The portal offered is very easy to understand and use.

4. Forex and offshore investment: Reliance provides the offshore facility which no
other AMC is providing in the market.

5. Better research and news: Reliance offers news from the DOW JONES and
REUTERS.

"Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management
Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital
of RCAM, the balance paid up capital being held by minority shareholders."

Reliance Capital Asset Management Limited (RCAM) was approved as the Asset
Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95
dated June 30, 1995. The Mutual Fund has entered into an Investment Management
Agreement (IMA) with RCAM dated May 12, 1995 and was amended on August 12, 1997 in
line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this IMA,

ABOUT RELIANCE LIFE INSURANCE

Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of Reliance -
Anil DhirubhaiAmbani Group. Reliance Capital is one of India’s leading 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 has interests in asset management

43 | P a g e
and mutual funds, stock broking, life and general insurance, proprietary investments, private
equity and other activities in financial services.

 Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45-IA of the Reserve
Bank of India Act, 1934.

 Reliance Capital sees immense potential in the rapidly growing financial services
sector in India and aims to become a dominant player in this industry and offer
fully integrated financial services.

 Reliance Life Insurance is another step forward for Reliance Capital Limited to
offer need based Life Insurance solutions to individuals and Corporate.

RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED

Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset
Management Limited)(RNAM) is the asset manager of Reliance Mutual Fund (RMF).
Reliance Capital Limited and Nippon Life Insurance Company are the promoters of RNAM
and currently hold 85.75% of its total issued and paid-up equity share capital. Equity Shares
of RNAM are listed on BSE Limited and National Stock Exchange of India Limited.

Reliance Capital Limited is one of India’s leading and fastest growing; RBI registered Non-
Banking Finance Company (NBFC). And has its business interests in Asset Management,
Life Insurance, General Insurance, Private Equity, Proprietary Investments, Stock Broking, &
other activities in the Financial Services Sector.

Nippon Life Insurance Company (“NLI”) is a Japan’s leading private life insurer and offers a
wide range of financial products, including individual and group life and annuity policies
through various distribution channels, mainly using face-to-face sales channels for its
traditional insurance products. It primarily operates in Japan, North America, Europe and
Asia, and is headquartered in Osaka, Japan. NLI conducts asset management operations in
Asia, through its subsidiary Nissay Asset Management Corporation (“Nissay”), which
manages assets globally.

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 TERMS AND CONDITIONS

Visitors to this website are bound by the following terms and conditions so please read the
following terms carefully before continuing to use this site if you do not agree with any of
these terms.

Disclaimer of Warranties, Inaccuracies or Errors

 Although Reliance Securities Limited tries to ensure that all information and
materials, whether in relation to the products, services, facilities, offerings or
otherwise (hereinafter "Information") provided as part of this website is correct at the
time of inclusion on the web site, it does not guarantee the accuracy of the
Information. Reliance Securities makes no representations or warranties as to the
completeness or adequacy or accuracy of Information and expressly disclaims liability
for any errors or omissions or delays in updating this information.

 Information is supplied upon the condition that the persons receiving the same will
make their own determination as to its suitability for their purposes prior to use or in
connection with the making of any decision. No Information at this web site shall
constitute an invitation to invest in any security or financial product. Any use of this
website or the Information is at your own risk.

 Reliance Securities along with its directors, employees, associates or other

representatives and its Affiliates along with its directors, employees, associates or
other representatives shall not be liable for damages or injury arising out of or in
connection with the use of the Website or its non-use including non-availability,
compensatory, direct, indirect or consequential damages, loss of data, income or
profit, loss of or damage to property (including without limitation loss of profits, loss
or corruption of data, loss of goodwill, work stoppage, computer failure or
malfunction, or interruption of business; under any contract, negligence, strict liability
or other theory arising out of or relating in any way to the Website, site-related
services, or any products or services and claims of third parties damages or injury
caused by any performance, failure of performance, error, omission, interruption,
deletion, defect, delay in operation or transmission, computer virus, communications

45 | P a g e
 line failure, theft or destruction or unauthorized access to, alteration of, or use of
information, whether resulting, in whole or in part, from or relating to any of the
services offered or displayed by Reliance Securities on the Website.

 Nothing contained herein is to be construed as a recommendation to use any product

or process, , in conflict with any patent, or otherwise and Reliance Securities makes
no representation or warranty, express or implied that, the use thereof will not infringe
any patent, or otherwise.

 The Services on the Website do not constitute an offer to sell or a solicitation to any
person in any jurisdiction where it is unlawful to make such an offer or solicitation.
These Service are not intended to be any form of an investment advertisement, advice
or information and has not been registered under any securities law of any foreign
jurisdiction and is only for the information of any person in any jurisdiction where it
may be lawful to provide such information, otherwise the same shall not be
considered an information. The distribution of this Service or content in other
jurisdictions may be restricted by law and the persons who access the Service should
inform themselves about, and observe, any such restrictions.

 Use of the website and its contents is at any persons, including a Customer’s, own
risk. The data and information provided on the website is not advice, professional or
otherwise, and should not be relied upon as such. Neither the information, nor any
opinion contained in this website constitutes a solicitation or offer by Reliance
Securities to buy or sell any securities or other financial instruments or provide any
investment advice. Reliance Securities or their employees have or may have an
outstanding position or holding in the securities or other related investments of issuers
and companies mentioned herein. The investments discussed or recommended in the
analysis, research reports, etc. may not be suitable for all investors. Investors must
make their own investment decisions based on their own specific investment
objectives and financial position and using such independent professional advisors as
they believe necessary. Information herein is believed to be reliable but Reliance
Securities does not warrant its completeness or accuracy. The content of the articles
and the interpretation of data are solely the personal views of the contributors and do
not in any way reflect the views of Reliance Securities. Users are advised to use the
articles and other data in the Website only as information.

46 | P a g e
 FINANCIAL PRODUCTS
NOVEMBER 23, 2010

Financial products refer to instruments that help you save, invest, get insurance or

get a mortgage. These are issued by various banks, financial institutions, stock

brokerages, insurance providers, credit card agencies and government sponsored

entities. Financial products are categorised in terms of their type or underlying asset

class, volatility, risk and return.

Types of financial products

 Shares: These represent ownership of a company. While shares are initially issued by

corporations to finance their business needs, they are subsequently bought and sold by

individuals in the share market. They are associated with high risk and high returns.

Returns on shares can be in the form of dividend payouts by the company or profits

on the sale of shares in the stockmarket. Shares, stocks, equities and securities are

words that are generally used interchangeably.

 Bonds: These are issued by companies to finance their business operations and by

governments to fund budget expenses like infrastructure and social programs. Bonds

have a fixed interest rate, making the risk associated with them lower than that with

shares. The principal or face value of bonds is recovered at the time of maturity.

 Treasury Bills: These are instruments issued by the government for financing its short

term needs. They are issued at a discount to the face value. The profit earned by the

investor is the difference between the face or maturity value and the price at which the

Treasury Bill was issued.

47 | P a g e
 Options: Options are rights to buy and sell shares. An option holder does not actually

purchase shares. Instead, he purchases the rights on the shares.

 Mutual Funds: These are professionally managed financial instruments that involve

the diversification of investment into a number of financial products, such as shares,

bonds and government securities. This helps to reduce an investor’s risk exposure,

while increasing the profit potential.

 Certificate of Deposit: Certificates of deposit (or CDs) are issued by banks, thrift

institutions and credit [Link] usually have a fixed term and fixed interest rate.

 Annuities: These are contracts between individual investors and insurance companies,

where investors agree to pay an allocated amount of premium and at the end of a pre-

determined fixed term, the insurer will guarantee a series of payments to the insured

party.

Complex Financial Products

There are certain financial products that are highly complex in nature. Among these

are:

1. Credit Default Swaps (CDS): Credit default swaps are highly leveraged contracts

that are privately negotiated between two parties. These swaps insure against losses

on securities in case of a default. Since the government does not regulate CDS related

activities, there is no specific central reporting mechanism that determines the value

of these contracts.

2. Collateralized Debt Obligations (CDO): These are securities that are created by

collateralizing various similar debt obligations such as bonds and loans. CDOs can be

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 bought and sold. The buyer gains the right to a part of the debt pool’s principal and

interest income.

CDS and CDO products played a major role in the financial crisis of 2008. During

these troubled times, CDO ratings reflected incorrect information on the credit worth

of borrowers, concealing the underlying risk in mortgage investments. Meanwhile, the

size of the CDS market far exceeded that of the mortgage market in mid-2007. Thus,

when the defaults began to unfold during the financial crisis, banks were not in a

position to bear the losses.

One of the most significant factors to consider when choosing financial products is

your risk appetite. Risky investments are usually associated with higher returns than

safer investments. According to empirical data, shares usually outperform all other

investments over the long term. However, in the short term, shares can be extremely

risky due to their random and volatile nature

49 | P a g e
 ECONOMICS

30 September 2016
Diverging Global Monetary Policies Plod On
The euro is trading at its lowest level against the Norwegian krone since August
2015. The euro is near its best levels against the Swedish krona in nearly as long.

30 September 2016
That's One Tough Dollar, but Oddly Down for September


30 September 2016
Remember September (for Jobs Data)

50 | P a g e
 

29 September 2016
Thursday Headlines: OPEC, Deutsche Bank and Many Fed Speakers


28 September 2016
Without Monetary Policy Insight, Dollar Runs in Place
Featured Articles

27 September 2016
Japanese Businesses Express Concern about the Chinese Relationship Direction
The Japanese business community is increasingly pessimistic about the Japan–China
relationship. For the past three years the US-based Center for Strategic and
International Studies (CSIS) and the Japan-based Nihon KeizaiShimbun (Nikkei)

51 | P a g e
 have surveyed Japanese business people about their attitudes to the bilateral
relationship with China.
Results from the most recent 2016 survey, released in July, reflect a Japan that has
grave fears about the political, security and economic dimensions of the relationship
with its most important neighbour.

27 September 2016
TPP Passage Less Likely
When President Barack Obama said, ‘The TPP means that America will write the
rules of the road in the 21st century’, he was not speaking metaphorically. Large
passages in the final text were lifted verbatim, sometimes en masse, from past US free
trade agreements (FTAs).
Markets

29 September 2016
Does Japan's Democracy Have Room for Women and Children?
A wave of political activism has animated East Asian politics: Taiwan’s Sunflower
Student Movement in 2014, South Korean 2015 street protests against President
Park’s new labour law, and protests in Japan in 2015 against Prime Minister Abe’s
security bills. Youth activism was common to all these movements. Facing challenges

52 | P a g e
 in a stagnating economy, the younger generations have developed a deeper political
awareness from a sense of marginalisation from political decision-making processes.


28 September 2016
It's an Italian Thing


27 September 2016
Singapore Maintains the Appearance of Democracy

53 | P a g e
 26 September 2016
What's Up in Emerging Markets

22 September 2016
Is Japan at the End of the Monetary Rope?
Featured Articles

20 September 2016
Recession Recovery and the Tale of Two Dollar Rallies
The dollar-value of all the goods and services the US produces has never been
larger. Two other metrics capture the recovery. These two Great Graphics come
from the Wall Street Journal and draw from Census Bureau figures.
READ MORE

54 | P a g e
 16 September 2016
A Missed Opportunity for Indonesia
As ASEAN meetings in Vientiane concluded in September 2016, an air of anxiety
was already beginning to settle over the Southeast Asian nations. Further resistance
against China’s maritime assertiveness in the South China Sea is proving increasingly
futile

Personal Finance

8 September 2016
Apple is Just the Beginning for Ireland
When the European Union decided to fine Apple €13.5 billion for tax evasion in
Ireland last week, it didn’t take long for the Irish government to join with Apple to
announce it would appeal the ruling.


55 | P a g e
 31 August 2016
An Angry Apple


12 August 2016
Is China's VAT Reform Helping the Economy?


26 July 2016
Vital Signs for European Banks

56 | P a g e
 

25 July 2016
Don't Stress Your Stress Test
Featured Articles
Sector

30 September 2016
Brothers in Energy
China used to call Russia its ‘older brother’. However, never again since the fall
of the USSR. In an effort to portray its status as a less powerful yet assuredly
more senior neighbour, Russian officials have recently begun referring to their
country as China’s ‘elder sister’. The new term has proven less popular in
China.


57 | P a g e
 29 September 2016
Move Over Oil, It's LNG


29 September 2016
Employer Insurance Premium Growth - Still a Problem


28 September 2016
Could the Outcome of the Algiers Talks Move Oil Prices?

58 | P a g e
 

26 September 2016
If Solar is the Way Forward, Projects will need Financing
Featured Articles

23 September 2016
Is India any Cyber-Safer?
Recently, technical and operational specifications of the Scorpene class
submarine that India is buying from DCNS — a naval shipbuilder two-thirds
owned by the French government — were leaked to The Australian newspaper.
The incident follows the Modi administration’s launch of an AU$150 billion
(US$113 billion) program to modernise the armed forces.

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 OBJECTIVES

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 OBJECTIVES
The objective of the study is to
 To identify which factors influence much to the investors to invest under various
options available.
 To know the preference of customers on the different products offered by the
Reliance Securities to know which product gives maximum return to the investors.
 To find out the investment perception of individual.
 To study the investors preference for different option available on the basis of their
age, occupation, annual income, education etc.
 To study the effect of gender difference on investment decision.
 To study the effect of age factors on investment decision in respect of age & gender

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 RESEARCH
METHODOLOGY

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 RESEARCH METHODOLOGY

Research Design: This research study is an analytical and descriptive research. It is related to
the investment towards financial productsin India. Sample Size: Primary source of data
collection is used for present study with the sample size is 100 customer of reliance security
money.

METHODOLOGY OF THE STUDY

Average method is used here. It includes surveys of different kinds. The major purpose of
descriptive research is description of the state of affairs as it exists at present. The problem
identified was “AN ANALYSIS OF INVESTMENT PREFERENCE TOWARDS
VARIOUS FINANCIAL PRODUCT OF RELIANCE SECURITIES"

SAMPLING TECHNIQUES
The sample population for research was the investors who have invested in financial products
through different financial companies in Lucknow City.
Data has been presented with the help of bar graph, pie charts, etc.

RESEARCH INSTRUMENTS
 Questionnaire method is used. The structured and straight forward questionnaire was
used so that valid and accurate data can be collected.
 Simple percentage and average method, were used to interpret various data collected
through questionnaire.

DATA SOURCE
Primary Data- Primary data was collected through questionnaire giving directly to
respondents and also through by mail.
Secondary Data- Secondary data was collected from various websites, reports, brochure and
articles from various journals, newspapers and magazines, etc.

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LIMITATIONS OF THE STUDY
 The study was restricted to Lucknow City.
 The reliance securities industry is unpredictable and keeps on varying from time to
time it is difficult to collect accurate data.
 Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.
 Sample size was limited to educated investors in urban and semi urban areas only.

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 DATA ANALYSIS
&
INTERPRETATION

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 DATA ANALYSIS & INTERPRETATION

ANALYSIS

1. AGE DISTRIBUTION

( Graph 1 )

According to the survey, maximum number of people i.e 32 % of the people belongs to age
group 35-45 years. 29% belong to 25-40 years and 21% belong to 20 to 35 years of age while
only 18% of the total people surveyed belong to age group 60 and above.

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2. AGE AND INVESTMENT

(Graph 2)

 Majority of the people who belong to 20 to 35 years of age have invested in mutual
funds. The reason being they are new to their jobs and have just started earning. They
want to maintain a balance between risk and return and have preference towards
instruments with higher liquidity and low cost.

 Only 18.75% of them have invested in ULIPs while only 6.25% have invested in
gold, FD’s , real estate and insurance policies.

 Investors belonging to the age group 35 to 45 years comprises of the people who are
interested in investment for their future security. They are investing their money in
ULIPs which gives them investment as well as security.

 27.27% of investors belonging to the age group 45-50 years of age are investing in
mutual funds while 24% are still investing in insurance due to their preference

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 towards the traditional insurance plans with only 4.5% investing in gold while 13.6%
in FD’s.

 Majority of the higher age group people have invested in gold with the least
preference towards capital market. It can be converted easily into cash as and when
required and involves low risk. This shows that people in higher age groups have
preference towards low risk instruments.

3. AGE AND TIME HORIZON

(Graph 3)

As per the survey conducted, younger age investors are investing for higher time period. This
may be because they want safety of their capital and are more focussed towards their future.
55% of the investors in 35-45 years of age and majority of the investors in 45–60 years of age
are more inclined towards investing for 3-7years. The reason may be that this period bring
moderate returns with the moderate risk level.
Investors in the high age group are investing for short durations from 1 to 3 years.

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4. AGE AND INVESTIBLE INCOME

(Graph 4)

45 % people belonging to 20-35 years of age make low investments around, less than 15000
investments per month probably because of low income or low interest in investments.
Majority of the people belonging to the middle age group make their monthly investments of
somewhere between Rs 15000- 30000. Around 59 % of the higher age people also make low
investments per month.

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[Link] AND RISK APPETITE

Age
Age
Age

(Graph 5)
We can clearly see, as the age increases, the risk taking capacity of the respondents decreases.
Under the age group 20-35, 37.5% people invest in high risk schemes, 37.5% in medium risk
schemes and only 16.16% in low risk schemes.
Medium age respondents prefer moderate risk schemes. While 72% of the highest age
respondents prefer low risk schemes . The reason being investors in this age group want
safety of their capital rather than higher returns.

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ON THE BASIS OF PROFESSION
6. BUSINESS AND INVESTMENT:

(Graph 6)

Among the people belonging to the business class, equivalent number of people are investing
in the mutual funds and ULIPs with 13.6% investing in the equities and the real estate.

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7. GOVERNMENT EMPLOYEE AND INVESTMENT

(Graph 7)

Insurance has become the most preferred and favored avenue among the government
employees because of their firm belief towards government insurance policies like LIC.
This can be clearly seen from the above figure that only 12% people are investing in ULIPs.
So. People are still not aware about it or it doesn’t seem to be attractive enough for them.

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8. OCCUPATION AND TIME HORIZON

OCCUPATION VS TIME HORIZON

(graph 8)

People who are doing business are investing for long term ie 7 years and above.
The reason may be they want safer investment for them and want to settle their money.
Government employees and people doing service are investing maximum of their income for
3 to 7 years .
Retirees want liquidity in their hands so they are going maximum for short term investments
upto 1 year.

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9. OCCUPATION AND INVESTIBLE INCOME

(Graph 9)

Respondents who belong to the business class seem to be more in favour of investing
Rs30000-Rs50000 per month . Almost 44% of the people belonging to the service class
invest Rs 15000- Rs30000 per month .however, some people i.e 42% belonging to the same
are investing upto Rs 50,000. Government employees seems to be more in favour of
investing Rs 30,000- Rs50,000.
Since retirees are very apprehensive while spending their money so, they invest very less
amount less than Rs15000 per month.

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[Link] AND INVESTMENTS :

(graph 10)

From this graph we can conclude that among the males the most preferred investment option
is Mutual fund and the next option preferred by them is ULIP. Among the females the most
favored mode of investments are ULIPs.

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11. RISK APPETITE OF THE INVESTORS

(Graph 11)

Out of all the people surveyed, 45% of the respondents prefer less risk oriented investments
as they have less risk appetite. 38% of the people prefer medium risk investments while only
17% favoring high risk schemes.

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12. RISK AND TIME HORIZON :

(graph 12)

As it can be clearly seen from the above graph people whose risk bearing potential is low are
investing in the long term instruments like FD’. This is because the higher the time period of
an instrument, the lesser the risk involved in it.

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13. OCCUPATION AND PEOPLE’S PERCEPTION TO INVEST IN TODAY’S
MARKET

(graph 13)

Respondents belonging to the business class and government employees are very cautious in
inwesting their hard earned in today’s market scenario so, they will invest in today’s market
scenario only if it is necessary for them to invest while most of the people belonging to the
service class they do not even have the courage to think about investments in current
scenario.

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ON THE BASIS OF ANNUAL INCOME :
14. HIGH RISK :

(Graph 14)

Out of all the people 54% of the people belonging to income group Rs L-5L are willing to
take high risk investments and get high returns.

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15. MEDIUM RISK

(graph 15)

Out of all the respondents belonging to the income group Rs 3L- Rs 5L, 45 % are willing to
take moderate level of risk and prefer moderate return and the low income level group are
least prefered in mderate risk instruments.

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[Link] RISK :

(graph 16)

As per the survey conducted, almost 50% of the investments in low risk schemes come from
the people belonging to the income group Rs2L – Rs3L and only 15% investments coming
from the higher income people.

50% of the retirees don’t know what to do, they need advice.

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17. ANNUAL INCOME AND TIME HORIZON :

(Graph 17)

People earning less income invest upto 3 years only. People belonging to the higher income
group Rs3L-Rs5L and invest for the longer term upto 7 year .The people belonging to the
group of Rs5L to Rs 7L are investing for more than 7 years. The reason being they want to
spread their risk and settle their future so as to earn good return on their investments.

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18. SATISFACTION FROM PAST RETURNS

(Graph 18)

Almost 67% of the people are satisfied from the past investments and have earned good
return on them. 21% of the investors are not satified from the past returns. They either want
to change their existing portfolio or do not want to invest further.
However 12% people are somewhat satisfied with the past returns.

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 FINDINGS
&
CONCLUSIONS

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 FINDINGS & CONCLUSIONS

 Almost 30% of the people belonging to the higher age group have invested in gold
because of the liquidity, marketability and convenience.

 Most of the people are investing for long term rather than short term gains.
 Maximum number of respondents are doing investment to save their taxes while most
of the youger people are investing for aggressive growth

 People still lack in knowledge about equity market as people are still not investing
large percentage of their investments in equities.

 Maximum number of respondents are investing around Rs 15000 – Rs 30000 income

per month in the investments.

 As the age is increasing, the risk bearing potential of the respondents is decreasing.
72% of high age respondents prefer low risk schemes they prefer safety of their
investment rather than growth.

 Almost 67% of the people are satisfied from the past investments and have earned
good return on them .
 Insurance is still the front runner among the government employees.

 Almost 45% of the people who are surveyed have low risk appetite .we can conclude
from the study that investors whose risk bearing capacity is low invest in the long
term instruments like FD’s.

 54% of the people belonging to the middle income group are willing to take high risk
investments and earn high returns.

 Most of the people belonging to the service class have no further investment plans .
they do not want to invest in the current market scenario while business and the
government employees will invest only if they find it necessary for them to invest.

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 RECOMMENDATIONS

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 RECOMMENDATIONS

 Insurance company must spread their awareness regading ULIPs among the people, as
they are not aware about it ,which is the next alternative of mutual fund.

 Banks must focus on the higher age population to sell their gold coins, through
personalised mail of their account holder, because they feel convenience due to it’s
liquidity and marketablity.

 AMC must focus on low risk financial products to higher age people, as they prefer
safety to their investment rather than growth.

 Insurance company should focus on the government employee as they need safe
investment, tax benefits & risk coverage.

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 BIBLIOGRAPHY

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 BIBLIOGRAPHY

Barber, Brad M., Terrance Odean, and Lu Zheng, 2005, Out of sight, out of mind: The effects
ofexpenses on mutual fund f lows, Journal of Business 78, 2095–2120.

Bergstresser, Daniel B., John M. R. Chalmers, and Peter Tufano, 2009, Assessing the costs
and benefits of brokers in the mutual fund industry, Review of Financial Studies,
forthcoming.

Websites :

[Link]
[Link]
[Link]
[Link]
[Link]
[Link]

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 QUESTIONNAIRE

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 QUESTIONNAIRE

1. Income level Per Annum

I) Below 100000 ii) 100000-500000 iii) Above 500000

2. Do you invest?

i) Yes ii) No

3. Specify your mode of saving.

i) Fixed Deposit ii) Investment iii) others (Specify)

4. Current Value of your investment Per annum

i) 10000-30000 ii) 30000-50000 iii) Above 50000

5. Current investment portfolio

i) Mutual Fund ii) Equity Trading iii) Fixed Deposit, Post Office savings

iv) Investment (UL/IP) v) Bank Savings

6. Objective of your investment

a. To build a corpus for retirement

b. To save for children education/ marriage

c. To provide for medical emergencies

d. To provide for family financial security

e. All of the above

7. Why do you prefer Reliance Securities for making your investment ?

i) Provides online platform ii) Povides all type of Financial Products under one
root. iii) Better servive iv) Provides expert advice for making investment.

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 8. Which of the Financial Products of Reliance Securities you aware of?

a. Equity Stock.

b. Currency trading.

c. Bonds

d. Mutual Funds

e. Insurance

f. Derivatives

8. On which product of Reliance Securities you invest more?

i) Bonds ii) Mutual Fund iii) Equity Trading

iv) Insurance v) Currency Trading

9. And, why?

i) Tax savings ii) To create wealth iii) Others future emergencies

10. Which type of Mutual Fund you are aware?

i) Growth Fund ii) Money Market fund iii) Equity Fund

11. How did you know about Mutual Fund?

i) Advertisements ii) Friends iii) Brokers iv) Other (specify)

12. In which Mutual Fund scheme you prefer to invest.

i) Open Ended ii) Close Ended iii) interval

13. What is your primary investment focus?

i) Retirement ii) Wealth generation iii) Capital preservation

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 iv) Income Generation

14. Do you consult while making an investment choice?

i) Every time ii) Often iii) Sometimes iv) Never

15. How often do you make investment decisions and execute them?

i) Once a month ii) Once in 3 months iii) Once in 6 month iv) Once a year

16. Would you like to invest more in future?

i) Yes ii) No

Any Suggestion about investing in Mutual Fund?

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