SUMMER TRAINING PROJECT REPORT 2008-2010 Corporate Guide:- Faculty Guide:- Miss Monika Mishra Miss Nida Afsar Center manager Lecturer,Finance Agra Submitted in Partial Fulfillment for the Award of Degree MASTER IN BUSINESS ADMNISTRATION Submitted by: - Vikas Tiwari IVS Institute of Technology TABLE OF CONTENTS 1 Obje ctive of Study…………………………………………05 Abo ut the Company………………………………………..07 Intro duction to the Topic………………………………….45 Board of Director……………………………………………64 Research Methodology………………………………………71 Data Analysis & Interpretation……………………………75 Obse rvation………………………………………………….82 Limi tations of the study…………………………………….87 Recommendations & Suggestions…………………...…….…84 Conclusion……………………………………………..………89 Bibliography……………………………………………..……91 Appendix…………………………………………………...….93 2 DECLARATION I Vikas Tiwari do here by declare that the project work entitle on the “D-mat Account with Reliance Money”at DELHI is the original work done by me. This project report presented as a partial fulfillment requirement for the degree of Master of Business administration. VIKAS TIWARI IVS INSTITUTUE OF TECHNOLOGY MATHURA 3 ACKNOWLEDGEMENT It was a great opportunity for me to work with Reliance money, pioneers in the field of stock trading, a part of Reliance Capital Ltd. I am extremely grateful to the entire team of Reliance Money at Agra who have shared their experience and knowledge with me and without whom the completion of this project would have been virtually impossible. I am gratified to Mr Brijesh Singh for their earnest coordination owing to which, I had the leg-up of undertaking the internship at the prominent organization, Reliance Money Pvt ltd. This is to express my sincere gratitude and heartfelt appreciation for all of the help,cooperation and patient guidance provided by Miss Nida Afsar( Finance Lecturer), Miss. Monika Mishra (Center Manager of Reliance Money, Agra) and company project guide, who has provided me the necessary information and his valuable suggestion and a good support in understanding the basics of the Reliance Money easily. I feel great pleasure to cordial thanks Mr. Prabhat Pun (Cluster Head of Reliance Money). Last but not least, I would like to extend my heartfelt gratitude to all those who directly or indirectly responsible for the successful completion of this project. 4 Vikas tiwari IVS INSTITUTE OF TECHNOLOGY 5 OBJECTIVE • To find the market potential and market penetration of Reliance Money product offerings in NEW DELHI • To collect the real time information about preference level of customers using D-mat account and their inclination towards various other brokerage firms e.g. Indiabulls, Sharekhan, Indiainfoline, Religare, Alankit , Unicon.ICICI Direct • To expand the market penetration of Reliance money. • To provide pricing strategy of competitors to fight cut throat competition. • To increase the product awareness of Reliance money as single window shop for investment solutions. 6 7 Executive Summary Investment is a serious Proposition; one has to look into various factors before deciding on the instrument in which to invest. To save money is not enough. One must invest wisely, and regularly to get the maximum benefits. Hence, the concept of investment in profitable financial instruments comes into focus. To cope up with inflation, one has to invest wisely so that he can cope up with uncertain future, for that you have to invest in investment opportunities available, before that one has take into consideration the following points before investing your savings: Consider your investment objective- what are you saving for? Define your investment horizon, or the time that you want to stay invested.... Determine your risk profile based on how much volatility you can take in your portfolio. One has to take a major decision that how to save money. But after saving the imperative issues that approach in one’s mind that is: 8 What are the sources of income? Where to invest those incomes? And how to earn maximum revenues from it. It’s an adage that earning wealth is not tough but the thing which matters that is how to hold on to and enhance that wealth. The project dealt with various fields like: 1. Trading and Demat account 2. Mutual Funds 3. Life Insurance Thus it gave trainees the opportunity to learn about all the products and with the range of products Reliance money offered it made the task a bit easier as we could fulfill the need of the customer in a better way. Our task was divided in 4 phases: 1. Product knowledge: This included the theoretical knowledge about the field and products which needed to be marketed. 2. Pitching in retail sector: This included the implementation of the knowledge imparted to us and the test of our marketing skills. Initially we were accompanied by other sales executive so that we can learn how to deal with the customers and understand their need. This also enhanced our interpersonal skills and confidence level. 9 3. Implementation in retail sector and pitching in corporate: By the start of this phase we were confident enough about the pitching and fulfilling the needs of the customer in the retail sector. This also included of the ways we should pitch the corporate. 4. Implementation at corporate levels: This included the implementation of the all the knowledge and ways learnt for the pitching and extracting business out of the corporate. With the end of 6 weeks every phase was completed and it gave us the real experience of retail as well as corporate world. Training Manual – Equity Markets & Scope Slide 1 Objective – To cover Equity Aspects and Scope for the Headstart to Leadership Program as per the PPT partEquity of L&D Product & P Markets & Scope 10 Prepared by – Neeraj Joshi (Learning & Development) A Reliance Capital company rocess Repository INTRODUCTION Have slide 1 on during the discussion to be followed Meet & Greet the participants in the session – Conduct an activity to familiarize you with the crowd. Introduce yourself and your role within the company. Your responsibilities, The business that your area / zone has generated, the business that your cluster has generated (If you have the information) Talk to participants about session related expectation – Behaviour Absenteeism – Related to them getting the certificate (If attendance is less than 95% the certificate would not be issued) Ask Questions – Encourage participants to ask questions Discipline – Maintain silence during the session, mobiles to be switched off, no side talks, etc. Discuss session flow - Slide 2 – 11 Objectives & Agenda Journey of the Indian Stock Markets Difference Between Primary & Secondary Markets Markets Around Read out the points to the participants to give them a brief of the flow of the presentation Equity Markets Slide 3 The Cycle of Market Emotions Sensex Highlights Over the Years Financial Saving - House Hold Return on equity: India and Emerging Markets Sectoral growth – Market expectations Trade in EquityWhat with Reliance is the single Money word that drives any market… Comparison with Online Brokers Franchisee Model Our trading Platforms COMPANY All is based on the communication flow in the market. Identifying your clients and challengesINFORMATION 12 NEWS EVENTS confidential 2 of 26 A Reliance Capital company INFORMATION INTERNAL TECHNICAL INFORMATION EXTERNAL FACTORS confidential 3 of 26 A Reliance Capital company Company Information – Emphasize on – should know factors before investing -performance of the company over the last 3-5 years. Comparison with other players, News – Both print and media channels – Newspapers, Magazines, TV / Radio etc. Events – Country and global wide events – political disturbances, Economical Performance & Impacts etc. External factors – Other industries, related industries to your segment that could impact you as well – e.g. – The Animal Husbandry Enterprise part of the Agricultural Industry Could impact Milk product based Industries Technical – Product know how, market performance should be known, track of stocks traded on Internal Information – management changes and impact. Business changes and impact, new business Models, New product lines being launched, Quote an example of a launch of a product – e.g. NANO and it’s impact on the auto industry Slide 4 13 "If I give you one dollar and you give me one dollar, each of us will only have one dollar. Read the quote and explain the concept of ideas related to information (if you have information you would get more ideas) in turn related to market (changes are what run the markets) But if you give me one idea and I give you another idea, we will both have two ideas". Sr. Don Rafael del Pino y Moreno Slide 5 14 confidential 4 of 26 A Reliance Capital company Journey of the Indian Stock Markets: Slide 6 Wall Street was built in 1644, on the lower end of Manhattan "Island" by the Dutch to protect against British attacks. The world's foremost marketplace New York Stock Exchange (NYSE), started its trading under a tree (now known as 68 Wall Street) over 200 years ago Address the participants by letting them know – 15 18th Century East India Company confidential 5 of 26 A Reliance Capital company •1840's: Recognition from banks and merchants to about half a dozen brokers 1850's: Rapid development of commercial enterprise saw brokerage business attracting more people into the business confidential 6 of 26 A Reliance Capital company Reason for half a dozen brokers: 1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. More people in the brokerage business led to results in the coming years: 1860-1865 Cotton price bubble as a result of the American Civil War 1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal Slide 7 •1860's: The number of brokers increased to 60 1860-61:The American Civil War broke out which caused a stoppage of cotton supply from USA; marking the beginning of the "Share Mania" in India 1862- 63.