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“A THESIS ON SERVICE PROLIFERATION AND CUSTOMER SATISFACTION

AT RELIANCE MUTUAL FUND NASHIK”

SUMMARY
The basic objective of any financial services company would be to provide an absolute
tailor made products and services to the customer and to retain them into the organization,
but to retain a particular customer is not easy because customer expectations change by
time and it becomes a tough job for the companies to curb the needs of their customers.
Now with the case of asset management company which is getting its pace and a lot of
companies are emerging as players, here a study has been undertaken with regards to
RELIANCE AMC where study looks into the expectation of the customers regarding
mutual funds and issues relating to customers expectation. The need for this research is to
emphasis the expectations of customer of mutual funds and how the company in contrast
to the expectations is performing.

This research is conducted to understand the customer’s perception towards mutual fund.
Till yesterday people are having very less knowledge for mutual funds because of
brokerage companies in India have not made efforts to expand the market. They have been
doing business with the same clientele. There is also a lack of investor awareness as far as
markets are concerned. The Harshad Mehta scam and various other scams have created a
bad impression in people's minds and this need to be changed. Just to put things in
perspective, India has 330 million bank accounts. The mutual fund industry has 30 million
unique folios. Unfortunately, in the broking industry, the number of people with Demat
accounts has continued to stagnate at 5.85 million in the last 10-12 years, which is
worrisome. Every industry in India has grown over the last 10 years except this one.
Whatever retail participation exists is coming from bigger cities such as Mumbai and
Delhi. The services have not reached bottom-of-the-pyramid towns. Reliance is
conducting investor awareness campaigns every Saturday at Reliance money centers.
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A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized is shared by its unit holders in
proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. The flow chart below
describes broadly the working of a mutual fund.

INTRODUCTION
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Customer satisfaction is a measure of how products and services supplied by a company

can meet the customer’s expectations.

Customer satisfaction is still one of the single strongest predictors of customer

retention. It’s considerably more expensive to attract new customers than it is to keep old
ones happy. In a 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.1

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.
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PURPOSE OF THE STUDY

The main purpose of the study is to know the expectations of those investors who invested
in RELIANCE mutual funds and the satisfaction levels of investors with the services
provided by the RELIANCE Asset Management Company, Nashik.

In the present competitive environment it is very crucial to every business firm to ensure
satisfaction to its customers. According to one survey it was found that it costs five times
more to attract a new customer than to retain an existing customer. So with all these
parameters taking into consideration one can say that it is very important to provide goods
and services that satisfy customers needs or wants irrespective of the industry or scale of
the business in which a firm is operating.

Here the main purpose of the survey is to know the various factors that are very important
in satisfying the customers needs and to know how RELIANCE AMC is ensuring its
customers satisfaction.

The expectations of customers are vary from one customer to the other customer. For
example some customers are only concerned about the returns that they are getting in a
fund but at the same time there are some other customers who are very specific about the
location, ambience and front line employees’ interaction and some other parameters. It is
very difficult to any business firm to satisfy all the expectations of all customers but there
are some common factors that are essential to fulfill.

The objectives of the projects are given as below. The details of the survey such as the
source of data, the sample size taken and the methods of analysis are all given briefly in
the methodologies. There are some constraints throughout the project, which are given
clearly in the limitations.
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OBJECTIVES

The following are the objectives of the Management Thesis.

 To understand the different investment options provided by RELIANC mutual

funds through it’s mutual fund schemes.

 To know the investors’ expectations on mutual funds offered byRELIANCE

mutual funds.

 To know the various services provided by RELIANCE AMC to its investors.

 To study the satisfaction levels of customers in RELIANCE mutual funds.

 To identify how the brand building helps in meeting the customers

expectations to meet their investment objectives

LIMITATIONS

 As the data will be collected through questionnaire, there are chances of biased
information provided by the respondent.
 The study is confined to the existing customers of RELIANCE mutual funds only.
 The survey will be limited only to Nashik city.
 The study does not consider the equity investment portfolio of investors.
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METHODOLOGY

Data for the survey is collected through:

Primary source
 Visiting the organization (Observation Techniques)
 Using structured questionnaire for the existing customer.

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 only from RELIANCE mutual fund customers’,
Nashik.

Methods used for analysis: bar charts and pie charts are the tools that will be used in
analyzing the data.
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REVIEW OF LITERATURE

For the present study, the following literatures are being reviewed.

The title of Article is “Does customer satisfaction lead to profitability?”

Author(s): Timothy L. Keiningham, Tiffany Perkins-Munn, Lerzan Aksoy, Demitry
Estrin Journal: Managing Service Quality
Publisher: Emerald Group Publishing Limited

Purpose – Many researchers have proposed a virtuous chain of effects from improved
customer satisfaction to profits. In particular, satisfaction is thought to improve share-of-
spending, which in turn leads to higher customer revenue and customer profitability.
This paper aims to examine these proposed linkages using data from the institutional
securities industry.Design/methodology/approach – The data used in the analyses were
collected as part of an ongoing telephone satisfaction survey of 81 clients of an
institutional securities firm across two continents (North America and Europe).
Mediation analysis was used to test the hypothesized effects.Findings – Customer
revenue was found to correlate negatively with customer profitability for unprofitable
customers, and positively for profitable customers.
Research limitations/implications – One of the limitations of this research is that it tests
the propositions within a single industry. Future research should attempt to replicate
these findings in other contexts.
Practical implications – A simplistic focus on improving customer satisfaction for all
customers in order to improve share-of-wallet and customer revenue does not seem to
represent the best management approach to maximize overall firm profitability. In fact, it
could actually result in a negative return on investment. Therefore, customers should
first be segmented by their profitability to the firm before expending resources to
improve customer satisfaction and share-of-wallet.Originality/value – The results of this
paper challenge the conventional belief that customer satisfaction should lead to
customer retention in turn, resulting in customer revenue and ultimately customer
profitability. The findings indicate that this may not always be true.
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INDUSTRY PROFILE
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.
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
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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 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.
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Mutual Fund Operation Flow Chart

ORGANISATION OF A 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.

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 Sponsor creates the AMC and the trustee company and appoints the Boards of both
these companies, with SEBI approval.

 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 investor’s money.

 The AMC’s capital is contributed by the sponsor. The AMC is the business face of
the mutual fund.

 Investor’s 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 ½ of the AMC’s 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.

 Trustees are required to meet at least 4 times a year to review the AMC.
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 The investor’s 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 sponsor’s 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.
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GROWTH IN ASSETS UNDER MANAGEMENT

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REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA

The regulation of mutual funds in India is governed by the SEBI vide the SEBI (Mutual
Fund) Regulation, Act 1996 (here in after referred to as SEBI Regulations). These
regulations make it mandatory for mutual funds to have a three-tier structure of sponsor –
Trustee – Asset Management Company (AMC). The sponsor is the promoter of the mutual
fund and appoints the trustees. The Trustees are responsible to the investors in the mutual
fund and appoint the AMC for managing the investment portfolio.SEBI regulations also
provide for who can be a sponsor, trustee and AMC, specifying the format of agreement
between these entities. These agreements provide for the rights, duties and obligations of
these three entities. The UTI is also structured as a trust. The important difference through
is that UTI does not have sponsors or a separate AMC. Financial intuitions and banks that
contributed to the initial capital of the UTI have their representatives on UTI’s Board of
Trustees, which oversees the operation of UTI Mutual Fund. The Association of Mutual
Funds in India (AMFI) is a self-regulatory body formed by the various MF Companies to
address the practices and policies of various aspects like new scheme launches, payments
to intermediaries’ comparisons and other ethical systems.
Likewise, different companies have their own Compliance and Audit offices, which are
mandated to control and report adherence to and deviations if any on the regulations and
policies issued by SEBI.
ADVANTAGES OF MUTUAL FUNDS

Professional Management
Diversification
Convenient Administration
Return Potential
Low Costs
Liquidity
Transparency
Flexibility
Choice of schemes
Tax benefits
well regulated
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Market Share of the mutual fund industry.

Assets Under Management (AUM) as at the end of Jan-2008

Sl.no. Mutual Fund Name % Market share

1 ABN AMRO Mutual Fund 1.66
2 AIG Global Investment Group Mutual Fund 0.00
3 Benchmark Mutual Fund 1.55
4 Birla Sun Life Mutual Fund 5.73
5 BOB Mutual Fund 0.02
6 Can bank Mutual Fund 0.70
7 DBS Chola Mutual Fund 0.60
8 Deutsche Mutual Fund 1.76
9 DSP Merrill Lynch Mutual Fund 2.86
10 Escorts Mutual Fund 0.03
11 Fidelity Mutual Fund 2.13
12 Franklin Templeton Mutual Fund 6.34
13 HDFC Mutual Fund 8.73
14 HSBC Mutual Fund 3.52
15 ICICI Prudential Mutual Fund 12.24
16 ING Vysya Mutual Fund 1.38
17 JM Financial Mutual Fund 0.91
18 JPMorgan Mutual Fund 0.00
19 Kotak Mahindra Mutual Fund 4.04
20 LIC Mutual Fund 2.39
21 Lotus India Mutual Fund 0.87
22 Morgan Stanley Mutual Fund 0.77
23 PRINCIPAL Mutual Fund 3.17
24 Quantum Mutual Fund 0.01
25 Reliance Mutual Fund 14.28
26 Sahara Mutual Fund 0.04
27 SBI Mutual Fund 4.75
28 Standard Chartered Mutual Fund 3.90
29 Sundaram BNP Paribas Mutual Fund 2.45
30 Tata Mutual Fund 3.40
31 Taurus Mutual Fund 0.07
32 UTI Mutual Fund 9.67
Grand Total 100.00
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COMPANY PROFILE
Reliance Mutual Fund is one of India’s leading Mutual Funds, with
Average Assets under Management (AAUM) of Rs. 90,938 Cores (AAUM for
Mar 08) and an investor base of over 66.87 Lakhs.

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani

Group, is one of the fastest growing mutual funds in the country. RMF offers
investors a
well-rounded portfolio of products to meet varying investor requirements and
has presence in 115 cities across the country.

Reliance Mutual Fund 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 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 Ltd. is one of India’s leading and fastest growing

private sector financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net worth.

Reliance Capital Ltd. has interests in asset management, life and

general insurance, private equity and proprietary investments, stock broking
and other financial services.

Statutory Details:

Sponsor: Reliance Capital Limited.

Trustee: Reliance Capital Trustee Co. Limited.

Investment Manager: Reliance Capital Asset Management Limited. The
Sponsor, the Trustee and the Investment Manager are incorporated under the
Companies Act 1956.
General Risk Factors: Mutual Funds and securities investments are subject to
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market risks and there is no assurance or guarantee that the objectives of the
Scheme will be achieved. As with any investment in securities, the NAV of the
Units issued under the Scheme can go up or down depending on the factors and
forces affecting the capital markets. Past performance of the
Sponsor/AMC/Mutual Fund is not indicative of the future performance of the
Scheme. The Sponsor is not responsible or liable for any loss resulting from the
operation of the Scheme beyond their initial contribution of Rs.1 lakh towards the
setting up of the Mutual Fund and such other accretions and additions to the
corpus. The Mutual Fund is not guaranteeing or assuring any dividend/ 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 the distributable surplus in the
Scheme. For details of scheme features and scheme specific risk factors, please
refer to the provisions of the offer document.

 Reliance Mutual Fund has won the "Most Trusted Mutual Fund Brand" for
the second year, in succession by Economic Times - AC Nielsen ORG-MARG
survey.

 CNBC TV18 - CRISIL Mutual Fund of the Year Award for 2007
Reliance Growth Fund - Most Consistent CPR Performer - Equity Fund Category
Reliance Growth Fund was the only scheme that won the CNBC TV18 - CRISIL
Mutual Fund of the Year Award in the Most Consistent CPR Performer - Equity
Fund category. In total 8 schemes were eligible for the award universe. Schemes
present in all 20 quarterly CRISIL CPRs for the 5 years ending with 2007 were
considered for the award. The award is based on consistency of the scheme’s
performance in the twenty quarterly CRISIL CPR rankings released during the
calendar years 2003 to 2007.
 Reliance Growth Fund-Growth Plan was declared the best fund over 5 years in
the Equity India category, out of 81 eligible schemes.

 Reliance Natural Resources fund is the only one Natural Resources sector
fund in India .
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 Reliance Mutual has completely withdrawn the restriction/upper limit imposed

on subscription in Reliance Equity and Reliance Growth schemes with effect
from August 18. Fresh and additional subscriptions including systematic
investment plans will henceforth be accepted without any limit, subject to the
minimum subscription amount for each scheme.

 Reliance mutual funds has now gone ahead of Unit Trust of India (UTI) to
become India's largest mutual fund by AUM (assets under management

RELIANCE CUSTOMER SERVICE

Online Services

Transact Online. It’s really simple.

It's time you experienced the ease and convenience of transacting online. You can now
purchase, redeem or switch your units of Reliance Mutual Fund schemes at
www.reliancemutual.com. You can also check your account statement, fill in and submit
the application form as well as view and download Offer Documents. You can do all this
from the comfort of your home or office. Here ís a simple step-by-step online transaction
guide that will help you get started.

Online Transaction
Customers can purchase, switch or redeem their Reliance Mutual Fund units through online.

Online Payment: When customers can choose Online Payment, they will be directed to
the Payment Gateway Page, where they have to choose one of the banks to make the
payment. Once they select their bank, they will be directed to the Net Banking page of
the respective bank. Log in to their bank account and make the payment. When the
transaction is complete, a confirmatory mail will be sent to their registered email address.

Cheque Payment: If they choose to make the payment by Cheque, they will need to
download and print the application form by clicking on the link provided. They need to
simply sign this form and submit it at the nearest Investor Service Centre (ISC), along
with their cheque. The transaction reference number should be written on the reverse of
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the cheque before submission. The ISC will acknowledge receipt of the same and send
their application for further processing.

Till now in the part of MT research understood the products and features of mutual
funds and gather complete information on Mutual Fund Industry . Studied completely
about products of Reliance Mutual funds and their performance levels and also studied
value added services offered by Reliance Mutual Fund AMC to the customers . Met
company executive to know about the performances of the products in our region and also
customer perception on Reliance Mutual Funds . Prepared a questionnaire to measure
customer satisfaction on Reliance Mutual Funds . Gather some customers information list
from Reliance Mutual Fund office, Nashik . The customers of Reliance Mutual funds are
mainly business people, employees and Institutional Investors .The Mutual fund
customers are risk averse .They expect high returns from less risk

.Customers have different views regarding Mutual fund investments . They are in
dilemma whether to invest in Bear market or Bull market . The investment objective is
varies from customers to customers . There are different objectives like Growth Fund ,
Income Fund , Balance Fund . Met some customers and got feedback about Reliance
Mutual Funds from them
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EMPIRICALANSS
BODY OF THESIS

TABLE: 1

TABLE SHOWING DIFFERENT AGE GROUP OF THE RESPONDENTS

AGE NO OF RESPONDENTS

0-18 0

18-36 40

36-54 50

54-72 10

72 & ABOVE 0
CHART – 1

72&
Above
No of respondents 0-18
0%
0%

54-72

10%
18-36

40%

36-54

50%

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.
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PREFERRED FUND STRUCTURE

Table-2

Structure of the fund No of investors preferred

Open – ended fund 64

Close – ended fund 24

Interval funds 12

Total 100

CHART - 2

No of investorsprefered

100

90

80

70

60

50
Open– Close– Interval Total
40
ended ended funds
30 fund 64 fund
Noof investorspreferred 24 12 100
20

Inference: It is observed10that 64 out of 100 that are 64% of investors are interested to
invest their money in open0 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 investors as well as they want some tax benefits. And the remaining
12% investors replied that they don’t mind to invest in any funds including interval funds.

INVESTORS SCHEME PREFERENCE

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Table-3

Preferred fund scheme No of investors preferred

Growth scheme 52

Income scheme 16

Balanced scheme 32

Total 100

CHART - 3

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.
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INVESTORS FUND PREFERENCE

Table-4

Type of fund No of investors preferred

Tax saver funds 15

Index funds 40

Sectorial funds 45

Total 100

CHART - 4

Inference: 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
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Table-5
TABLE SHOWING REPEATION OF INVESTMENTS MADE BY THE RESPONDENTS.

RESPONSE NO OF RESPONDENTS

YES 64

NO 36

TOTAL 100
Chart-5

No of Respondents

YES

NO, 36 NO

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 marketYES,
for the
64

second time.
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GETTING MONTHLY / QUARTERLY STATEMENTS FROM TIME TO

TIME TABLE-6

Getting Monthly / Quarterly statements No of Investors

from time to time

Yes 70

No 30

CHART - 6

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 .
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Table-7

RESPONDENTS RANKING ON THE CUSTOMER SERVICE OF

RELIANCE

MUTUAL FUNDS

RANKS NO OF RESPONDENTS
ONE 34
TWO 16
THREE 26
FOUR 16
FIVE 8

Chart-7
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Inference: Out of 100 respondents 34 ranked RELIANCE as AMC one for customer service
function.

Table-8

RESPONSE REGARDING AREAS FOR IMPROVEMENT BY

RELIANCE

MUTUAL FUNDS

AREAS NO OF RESPONDENT
CUSTOMER SERVICE 35
MONITORING OF FUND 38
AGENTS TRAINING 22
OTHERS 5
TOTAL 100

Chart-8
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Inference: Out of 100 respondents 38 respondents want RELIANCE to improve at their

fund monitoring function.

Table-9

REDEMPTION SATISFACTION OF THE CUSTOMERS

Satisfaction about Redemption facilities No of Investors

Yes 65

No 35

Chart-9

Inference: Sixty five percent of the customers are happy with the redemption
facilities of RMF.
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Table-10
RESPONSE REGARDING USAGE OF VALUE ADDED SERVICES OFFERED BY RELIANCE

MUTUAL FUNDS

VALUE ADDED SERVICES NO OF RESPONDENT

ATM 0
Ecs 60
Online transaction 20
Direct investment 40

CHART-10

Inference: Most of the customers are making use of value added services of Ecs and a
few of them make use online transaction and direct investment.
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FINDINGS & SUGGESTIONS

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 the rest of the investors have
voted for 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 AMC one
for customer service function.

 It was found that Out of 100 respondents 38 respondents want RELIANCE

to improve at their fund monitoring function
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CONCLUSION AND RECOMMENDATIONS

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 CEO’s 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.

 The company doesn’t have enough tax saving plans or appropriate plans for tax so
which they should come up with.
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QUESTIONNAIRE
NAME: AGE: PROFESSION:

1. Have you ever invested in RELIANCE Mutual

Funds? Yes [ ]

No []

2. If yes why did you choose RELIANC Mutual Funds?

3. By structure in which type of schemes did you

invested? Open - Ended Schemes [ ]

Close - Ended Schemes[ ]

Interval Schemes[ ]

4. By investment objective in which type of schemes have you

invested? Growth Schemes []

Income Schemes [ ]

Balanced Schemes [ ]

5. In which type of fund you want to

invest? Tax saver funds [

Index funds [ ]

Sectorial funds [ ]

6. Did you repeat your investment after your initial investments?

Yes No
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7. Are you getting Monthly / Quarterly statements from time to

time? Yes [ ]

No []

8. Are you satisfied with the redemption facilities provided by RELIANCE AMC?

Yes [ ]

No [ ]

9. Are you satisfied with portfolio management managed by RELIANCE AMC?

Yes [ ]

No [ ]

10. Which value added service you are using?

ATM [ ] Online tranction [ ]

Ecs [ ] Direct investment [ ]

11. Are you satisfied with value added services offered by RELIANCE AMC?

Yes [ ]

No [ ]

12. Grade the customer service of RELIANCE with regards to Mutual Funds on a scale of
1-10

(Where 1 will represent the best monitoring of fund, while 10 would reflect the
poor monitoring of fund)
1 2 3 4 5 6 7 8 9 10
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13. What is your opinion on RELIANCE Mutual Funds overall performance?

Excellent [ ]

Good [ ]

Better [ ]

Bad [ ]

14. In what areas do you want RELIANCE mutual funds to improve?

Customer

service

Monitoring

of fund

Agents

training

Others
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BIBLIOGRY

BOOKS

MUTUAL FUNDS IN INDIA - PERSPECTIVES AND STRATEGIES

Edition 2007 Published by ICFAI BUSINESS SCHOOL :- Arindam Banerjee

REFERENCES

Websites:

 www.reliancemutualfunds.com
 www.amfiindia.com
 www.mutualfundsindia.com
 www.mutualfundsindia.com
 www.ask.com
 www.faq.com
 www.bseindia.com
 www.amfiindia.com/mutual funds/nav/about funds/open ended schemes.com
 www.investopedia/aboutus/html
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ABBREVIAS

ASL : Allianz Securities Limited

SE : Securities
Mf : Mutual Fund
MF’S : Mutual Funds

NASDAQ : National Association of Securities Dealers Automated Quotation

BSE : Bombay Stock Exchange
AMC : Asset Management Company
AMFI : Association of Mutual Funds
India AUM : Assets under Management
CBFI : Crisil Balanced Fund Index
CCBI : Crisil Composite Bond Index
CRISIL : Credit Rating & Information Services of India Ltd.
FDI : Foreign Direct Investment
NAV : Net Asset Value
NFO : New Fund Offer
SEBI : Securities Exchange Board of India