Comparative Analysis of

Debt based Mutual Funds

with a focus on
Corporate & SMEs.

Submitted to: Presented by:

Mr. Nikunj Sharma (Assignment Owner) Nishant Fartiyal

Mr. Shibin Sebastian (Project Owner) SAP ID: 70103047

1
ACKNOWLEDGEMENT

This report is a synergistic product of many minds.

I am grateful for the inspiration and wisdom of many people for their insights and
encouragement. I cannot possibly mention the names of all those people who have
enriched and improved my thinking through their conversations. But without the
names of some people this project report would have not been possible. This report
has been analyzed and sharpened by their intellectual prowess.
I sincerely express my thanks and gratitude to Mr. Shibin Sebastian (Branch
Manager Reliance Capital Asset Management Limited Mysore) for allowing me to
work on this challenging project.
I am also grateful to Mr. Leo Amal Rosario and Mr. Aravinda Srinivasa
(Relationship Manager Reliance Capital Asset Management Limited Mysore) - for
their valuable insights in the field of sales at Reliance Capital Asset Management
Limited Mysore. I am thankful to all of them for their patient help, valuable
suggestions, encouragement and guidance at every stage of my work, which
enabled me to complete the final report.
Lastly, I wish to express my gratitude to all my colleagues for their constant
encouragement and support.

2
CONTENTS

RELIANCE LIQUID FUND VS. BANK FIXED DEPOSIT 16

A COMPARATIVE ANALYSIS OF DIFFERENT FLOATING
RATE FUNDS 17
TAX STRUCTURE 18
RESEARCH FINDINGS 19
SEGMENTATION OF MYSORE MARKET 20
LIMITATIONS 21
RECOMMENDATIONS 22
REFERENCES 23

3
OBJECTIVES

 To accurately segment the market so that

customers are targeted with products those are
relevant to them.

 To find out the awareness level of investors for

various schemes offered by RMF.
 To determine the potential market size.
 To formulate a feasible strategy to tap the market
and ensure that it gets implemented effectively.
 1st mover advantage in this category gets utilized
and work towards market leadership in future gets
started.
RESEARCH METHODOLOGY

This report is based on primary as well secondary data,

however primary data collection was given more
importance.
Research methodology was adopted so that we get the
required vital information needed to formulate future
strategies to maximize our business.

I followed the concept of Simple Cluster Sampling

wherein we choose a cluster out of all available clusters
and access it to get the required information. Most of
the primary data was collected by making visits to
various target customers in the chosen cluster. Lots of
interaction with various prospective clients, our channel
partners and my Project Owner Mr. Shibin Sebastian
was what helped me in accumulating this valuable piece
of information which I have included in my report
under the heading called Research Findings.
Apart from the field work I also gathered some
secondary data using internet, magazines and various
published journals.
This research methodology has not only helped me in
collecting vital information but also helped me in
building rapport with my clients and prospects.
REASONS BEHIND CHOOSING THIS PROJECT

 Mysore is soon stealing the gleam away from Bangalore.

Mysore, Karnataka’s second largest city, is fast emerging as the IT

destination after Bangalore. Mysore is emerging as Bangalore’s twin
city. New industrial hubs have developed in the city and real estate
transactions are on the rise.

 The city currently boasts of various IT and non-IT campuses

like Software Paradigms Pvt Ltd., Excel-Soft Technologies Pvt. Ltd,

SDD Global Solutions Pvt Ltd., iRobot, Infomaze Technologies and
Solutions Pvt Ltd., Meritor, Automotive Axles Ltd. In addition to this,
Mysore houses many big companies like Sagas Autotec Private Ltd.,
Mysore Paper mills, Mysore Paints and Varnish Ltd. to name a few.
 AUM of RMF Mysore being majorly built of Equity based funds.
Debt penetration in Mysore is pretty less compared to Equity. We
therefore aim to increase our debt AUM in Mysore. Recently we have
added a few institutional clients to us but we still have lot more to
cover. Institutional investments in debt would help us grow our AUM at
an increased pace and simultaneously we can also focus on retail
investments in the debt category.
 Untapped potential for debt funds in Mysore market is huge.

ABSTRACT

The Indian mutual funds industry is witnessing a rapid growth as a

result of infrastructural development, increase in personal financial
assets, and rise in foreign participation With the growing risk appetite,
rising income, and increasing awareness, mutual funds in India are
becoming a preferred investment option compared to other investment
vehicles like Fixed Deposits (FDs) and postal savings that are
considered safe but give comparatively low returns, according to
"Indian Mutual Fund Industry". The report focuses on contribution
towards debt category mainly by corporate and other SMEs.

Alarmed by stocks that seem to plunge one day and skyrocket the next
investing gurus suggest debt as the sensible place to park your money
whether stocks are sliding or not. Most of the corporate and other
institutional investors seem to have understood this really well and that
is the main reason for debt based mutual funds contributing more than
73% of the total Average Assets under Management (AUM) of the
Indian Mutual Fund Industry. However it is really important to note that
it’s not the entire debt category that is always behind this huge corpus
size and recently the major contribution has come from ultra short term
debt funds, which have registered huge inflows from institutional
investors.

Report mainly focuses on the debt funds category which is broadly

divided into 3 categories, viz., debt/income schemes, liquid/money
market schemes, gilt schemes. Debt schemes offer you capital
protection as well as steady income; they come with good returns
ranging from 10-13%, however with the certain amount of risk.

Debt funds deliver you steady returns though the returns may not be as
attractive as equities. However, you get a sense of assurance for returns.
Also they offer you greater tax efficiency as compared to traditional
ways of investing that is bank fixed deposits and post office schemes.

Liquid/money market schemes are basically for the short term

investment, to park your funds with the money market instruments call
money, commercial papers, (CPs). The returns range from 5-7%. Gilt
schemes invest in government securities, the returns range normally
between 7- 8%.

Increased demand for sophisticated Treasury Management is majorly

driving the corporate to park their idle money with various asset
management companies. Moreover with a rise in corporate earnings and
maturing capital markets lots of inflows are expected in the near future.
Institutional segment has also started witnessing the emergence of a
new category of SMEs seeking advice on managing their funds.

Tier 2 city of Mysore is stealing the gleam away from Bangalore and
presence of more than 15 AMCs in itself is evidence big enough to
prove the city’s potential. Report also tells us about the concept of
weekend parking which has significantly attracted the attention of a no.
of institutional investors. Inspite of being little conservative,
institutional investors here in Mysore are gradually opening up to
investments in liquid and liquid plus category of mutual funds. Report
tells us about the classification of debt based mutual funds in Reliance
AMC. Comparison of Liquid funds with Bank fixed deposits is also a
part of the report.
Report also mentions the investor’s perception about debt based mutual
funds. Considering today’s competitive scenario I have also tried to put
a comparison of three floating rate fund schemes offered by various
AMCs. Research Findings and recommendations form the conclusion
of the report.
INTRODUCTION
What are Debt Mutual Funds?

Debt funds are funds that invest in “debt instruments”, which include
government securities, corporate bonds and money market instruments.
These are called debt instruments because the issuers have borrowed
money from the lender (investors) by issuing these securities.
These “debts”, mainly known as “bonds”, are income generating
properties i.e. investors receive regular interest payments on them.
These payments could be monthly, semi-annually or annually.

Types of Debt Mutual Funds:-

Ideally debt funds are of three main types:

Income/bond schemes
They invest in long- and medium-term instruments like corporate
bonds, debentures, fixed deposits. These are designed for corporate and
small businessmen to use for cash or treasury management. These
schemes allow them to park short-term surplus funds in the money
market, so that they earn some return before they find end uses. They
invest in money market instruments like call money, inter-corporate
deposits and commercial paper. Their returns range from 8 to 12 per
cent, depending on money market conditions. Even salaried individuals
can use them in the short term, since they offer better returns than
savings accounts. Risk comes from money market volatility - which
also creates the possibility of gain due to a sudden increase in rates.
Also risk arises from the quality of paper held and from unjustifiably
large exposures to particular companies or sectors. Income schemes
usually offer the best returns among those investing in various forms of
debt. However, these superior returns do come at the cost of slightly
higher risk.
In addition to the standard income and growth options, several schemes
are now offering a third choice: dividend reinvestment. Here, tax-free
dividends due to you, which you might otherwise have spent, are
reinvested in the fund, getting you more units. This is a more efficient
process of capital building.

Liquid/money market schemes

They invest in instruments having short-term period like treasury bills,
commercial paper, call money and repos. These are designed for
corporate and small businessmen to use for cash or treasury
management. These schemes allow them to park short-term surplus
funds in the money market, so that they earn some return before they
find end uses. They invest in money market instruments like call
money, inter-corporate deposits and commercial paper. Their returns
range from 8 to 11 per cent, depending on money market conditions.
Even salaried individuals can use them in the short term, since they
offer better returns than savings accounts. Some funds even offer
cheque-writing facilities. Risk comes from money market volatility -
which also creates the possibility of gain due to a sudden increase in
rates.

Gilt Funds
Gilt is a British term and initially referred to the debt securities issued
by Bank of England that had a “guilt” (guild that means painted with
gold) edge. However, now Gilt funds refer to funds that invest in
sovereign papers issued by the central government and the state
governments of any country. The maturity period in these funds are
medium- and long-term, depending upon an investor’s goals.
Government securities, or Gilts, are the most liquid debt instruments.
They offer excellent investment opportunities for fund managers. Also,
the yield gap between AAA-rated debt (the highest safety rating) and
gilts has fallen from over 1 percentage point over the past three to seven
years to 0.5 percentage points during the past year. Gilt schemes are for
those with the least risk-tolerance and a willingness to take a small cut
in returns, relative to income schemes. In fact, it's possible for a pure
gilt scheme to outperform a regular income scheme. In the past six
months, many mutual funds have launched gilt schemes. The returns
range from 9 to 12 per cent. Most of these are open-ended, no-load
funds - the best, since they ensure liquidity.

There are some other type of debt funds and include:

Monthly income plans (MIPs)

Here every month a fixed amount is invested of which approximately
20% is allocated to equity and the remaining to debt. It gets benefit of
both equity and debt market. These scheme ranks slightly high on the
risk-return matrix when compared with other debt schemes.

A fixed maturity plan (FMP)

It is a close-ended scheme, and has an exit load, if redeemed, before the
maturity period. Such schemes can have a maturity period of three
months to three years. It selects an instrument, which corresponds with
its maturity period. For instance, if the maturity of a scheme is one year,
then the scheme will invest in instruments having one-year maturity. As
the instrument will have a fixed interest rate payable on quarterly/half-
yearly basis, the NAV will be on interest accrual basis.

CLASSIFICATION OF OUR DEBT SCHEMES

Debt schemes at Reliance Capital Asset Management Limited are

classified into 3 broad categories which are as follows:-

1. Reliance Liquid Schemes

2. Reliance Liquid Plus Schemes

3. Reliance Duration Schemes

Each of these categories has various schemes under them. Let us see
the classification with the help of diagrams.
 Debt Schemes

Reliance Liquid Reliance Liquid Reliance

Schemes Plus Schemes Duration
Schemes
1. Reliance Floating Rate 1. Reliance Medium 1.Reliance Regular Savings
Fund Term Fund Fund - Debt
2. Reliance Liquidity Fund 2. Reliance Short Term
3. Reliance Liquid Fund Fund
2. Reliance Money
(Treasury Plan) Manager Fund 3. Reliance Gilt Securities
4. Reliance Liquid Fund Fund
(Cash Plan) 4. Reliance Income Fund

CONCEPT OF WEEKEND PARKING

As the name suggests the weekend parking concept is parking one’s

money with us over the weekend.

Investor may invest on Friday before cut-off time

•Cut off time for high value Cheque- 10.30 am

•Cut-off time for transfer Cheque - 12 noon

He may submit the redemption request before 3 pm on Friday

Money is deposited in his//her bank account on Monday (On NAV of

Sunday).
 Idle funds remain invested for 3 days.

This concept has gained significant attention as it helps us to lure

prospective customers to park their money with us for the weekend.
The fact that idle funds remain invested for 3 days really appeals to
them and also post tax returns (in case of dividend option) are far
better than what they get from bank fixed deposits. Moreover the
investment is in Liquid Funds category only so the investors need not
worry very much about the safety of their principal amount.

Following funds are used for weekend parking...

Reliance Floating Rate Fund > Minimum Amt Rs 25000

Reliance Liquid Fund > Minimum Amt Rs 5000

Reliance Liquidity Fund > Minimum Amt Rs 5 Crs

DYNAMICS OF DEBT MUTUAL FUNDS

From an inflation-adjusted perspective, debt mutual funds compare very
favorably to fixed deposits. Also from a post-tax viewpoint, mutual
fund units score over bank fixed deposits, especially for institutional
investors who are mostly in the highest tax bracket.

Debt funds are distinguished by the type, credit quality and length of
maturity of the bonds in which they invest. Those emphasizing short-
term securities and higher credit quality tend to be more conservative
than the ones offering longer maturities and lower credit quality. More
conservative funds generally hold out the prospect of reasonable returns
and low-risk exposure, while aggressive funds seek to offer higher
returns in return for accepting higher risk exposure.
Hence, investment decisions should be in line with the investment
objectives/time horizon and risk appetite.

RISK ASSOCIATED WITH DEBT FUNDS

Every coin has two sides and so does investing in debt. There is no such
thing as a completely safe or risk-free investment. So, while the debt
market is wooing investors with its safe-keeping ability, understanding
the risks involved within this market is a good idea if one is to stay a
step ahead of danger.

There are no free lunches anywhere. As far as investment risks go, they
vary from investment to investment. The risk is different everywhere as
there are different debt funds present in the market place. Each fund
captures a different risk, be it interest rate risk, market risk or credit
risk.

Type of risks

One should always assess the kind of securities the fund they are
investing in will have and the type of risk associated with it.

 Interest rate risk

Interest rate movements have an inverse relationship with the net asset
value (NAV) of a fund. If rates rise, the NAV of a fund comes down
and vice-versa. This is why people prefer investing in such bonds when
they feel that the interest rates are going to be cut. This often affects
longer-tenure funds such as medium and long term bond funds or gilt
funds; these will get affected as they invest primarily in government
bonds. Coming to how interest rate risks affect bond prices. If you own
a bond paying 6% interest and want to sell it one year later on the open
market when the interest rate is 8%, you're going to get a lower price
than what you paid. After all, why would anyone buy your 6% bond if
he could get a new 8% bond? The only way he will do it is by buying
your bond at a discount. The longer you hold your bond, the less likely
you are to lose money on it. As bonds are typically a long-term
investment, so this shouldn't really be a big concern.

 Credit risk
If your fund buys corporate bonds, it is essentially purchasing a claim to
the assets of the company. Just as with individuals, corporations take on
debt in the hope to grow. Sometimes, they take on too much or their
operations start to perform poorly and they are unable to repay their
debts. This is just like someone taking on too much credit card debt and
then having to file for bankruptcy. At times, companies will file for
bankruptcy and won't be able to repay the principal on their debt. This
means that the investor can theoretically lose his entire investment,
although this is not a particularly common occurrence. In such a case,
when the organization that issued the bonds goes out of business for
some reason, it will obviously not be able to fulfill any more interest
payments or otherwise redeem the bond's value, creating a credit risk.

This risk increases/decreases depending on the reliability and stability

of the company. Non-government or corporate bonds carry more of this
type of risk than bonds issued by the government or government-
backed organizations which are usually considered credit risk free as
one does not expect the government to go bankrupt and shut shop.

 Liquidity risk

A while ago debt funds faced severe redemption pressures as

companies reeling under the liquidity crunch pulled out money from
liquid and debt funds they had invested in. This was due to a
combination of reasons, like banks tightening working capital loans for
companies and retail investors wanting to cash out as well. This led to
massive distress selling by mutual funds coping with redemption
pressures. With companies trying to get cash from the supposedly liquid
debt assets and retail investors seeing yet another NAV drop in their
portfolio, wiping away whatever returns they were making, the as such
smooth working debt markets, crashed under selling overload.. While
funds as such do not like holding too many illiquid papers, mutual
funds, especially those with lock-in periods, do hold securitized papers;
pass through certificates (PTC), securities issued by finance companies
and also a few corporate bonds.

 Default risk

During times of financial troubles and slowdowns, there is a likelihood

of companies which have issued debt, defaulting on their interest and
principal payments. Credit defaults badly affect the NAV of the fund
and can be a major threat to investors and the profits they have made
prior to this lean patch. Such risks plague the debt market too,
especially smaller companies who have issued debt and are now facing
a cash flow problem.

 Regulatory risk

When the regulations that govern a particular market, in this instance

the debt market, undergo changes, be it due to regulators being
changed, new safety or modern norms being approached, then the debt
market can take unforeseen turns, and this too is a risk that on should be
aware of.

 Market risk

When a fund holds a lot of securities or bonds of a particular kind, say a

100,000 securities for example, and the market trade volumes for that
security is 10,000 or so, one runs a market risk. This is to say that if the
fund needs to liquidate these securities, then due to the thin trading
volume, will cause the bond prices to drop drastically once these
100.000 shares are being offloaded.

This is a market risk which can occur when one fund holds a security
that is not traded so heavily as the amount it wants to offload, or when
the market situation is such that the overall trade volumes drop
drastically.

 Settlement risk

This is basically a counterparty risk that exists when one buys securities
and bonds from a third party. This risk lasts till the bond purchased
reaches the fund purchasing it. This risk, however, is now not such a
threat as you have a settlement guarantee fund and in most cases in
India the counter party is the trading platform itself.
RELIANCE LIQUID FUND VS. BANK FIXED
DEPOSIT

Scheme/ Fund Minimum Approximate Tax on interest

Category investment period Returns /Dividend
Distribution Tax

Reliance Liquid 0 day 4.5 % 28.325 %

Fund Category

Bank Fixed 7 days 3.5 % 33.33 %

Deposit

So why liquid funds?

# Tax advantage

# Zero entry and exit

# Redemption time 1 day

# Minimum investment Rs 5000

These funds have a specific purpose in your portfolio. They can be used
to park short term cash.
 A COMPARATIVE ANALYSIS OF DIFFERENT
FLOATING RATE FUNDS
Funds Chosen for Comparison:

11 Reliance Floating Rate

11 HDFC Floating Rate Income ST Retail

11 Magnum Floating Rate ST

Reliance Floating Rate HDFC Floating Rate Income Magnum Floating Rate
ST Retail ST

Standard Deviation= 0.22 Standard Deviation= 0.24 Standard Deviation= 1.43

Sharpe Ratio= 13.34 Sharpe Ratio= 11.02 Sharpe Ratio= 1.94

This fund has got a higher
Sharpe ratio compared to other
two funds, so the return offered
is more than the risk involved in
investing in this fund.
This fund has got higher Sharpe
ratio compared to magnum
floating rate fund. So the return
offered is more than the risk
involved in investing in this
fund.
Sharpe ratio for this fund is
very low compared to other
two funds. The return
offered is very low
considering the risk
involved in investing in this
fund.

The standard deviation is pretty Standard deviation of this fund is Standard deviation is also
low compared to other two also low. It’s less risky than the very high. This fund is
funds. This shows that the fund magnum floating rate fund. more risky than the other
is less risky. two funds.

Source: www.valueresearchonline.com

(Value Research Fund Rating as on Aug 31, 2009.)

 TAX STRUCTURE
Let us have a look at the tax structure for debt and liquid schemes.

Particulars Individuals Corporate NRI*

Dividends (In the hands of investors)

Debt Schemes Tax free Tax free Tax free

Dividend Distribution Tax (By the Scheme)

Debt Schemes 12.5% + 20% + 10% surcharge + 3% cess 12.5% + 10%

10% = 22.66% surcharge + 3% cess
surcharge + = 14.163%
3% cess
= 14.163%

Money market 25% + 10% +3% = 28.325%

and Liquid
Schemes

Long Term Capital Gains

Debt Schemes 10% without indexation or 20% with

indexation. Whichever is lower + 10% + 3%
cess

Without Indexation 11.33%

With Indexation 22.66%

Short Term Capital Gains

Debt Schemes 30% + 10% + 3% = 33.99%

RESEARCH FINDINGS
 Mysore Market comprises of around 400 Corporate and
Sme’s and also approximately 120 cooperative societies and trust
exist here. Various large and small scale industries existing in Mysore
include handicraft Exports, agriculture Produce,
automobile/Engineering Industry, food/food related industry, Pharma,
textiles, IT& Telecom, tyre /tube manufacturers.
Mysore, Karnataka’s second largest city, is fast emerging as the IT
destination after Bangalore. This rapid transformation in the city’s
profile is mainly because of the surge in Mysore’s real estate segment.
Bangalore is currently facing space crunch. Property values in
Bangalore are all time high. All these factors are driving away the IT
and ITES companies from Bangalore. Mysore is emerging as
Bangalore’s twin city. New industrial hubs have developed in the city
and also the city currently boasts of various IT and non-IT campuses
like Software Paradigms Pvt Ltd., Excel-Soft Technologies Pvt. Ltd,
SDD Global Solutions Pvt Ltd., iRobot, Infomaze Technologies and
Solutions Pvt Ltd., Meritor, Automotive Axles Ltd. In addition to this,
Mysore houses many big companies like Sagas Autotec Private Ltd.,
Mysore Paper mills, Mysore Paints and Varnish Ltd. to name a few.

 Untapped market is huge as our customer base extends from

Corporate to SMEs from cooperative banks to trusts from cooperative
societies to clubs and many other prospective customers are there on the
list of our target customers. And also The city's growing attractiveness
as a commercial and IT destination offers vast potential for further
development.

 Relationship with clients is what drives business here in

Mysore. People here are little conservative when it comes to investment
and that is the reason why Banks and IFAs remain the preferred channel
as investors trust them for their advice and after sales service. Even in
case of institutional investment relationship is what makes any AMC do
business.

 Preferred AMCs include SBI Mutual Fund, LIC Mutual

Fund and Reliance AMC Ltd. As we have already mentioned that
even institutional investors are little conservative when it comes to
investment. So SBI being a PSU is undoubtedly preferred. But
gradually the scene is changing and a few institutions have started
considering returns, fund corpus and AMC ranking before making
investments. This is where we gain a lead when it comes to Average
AUM and the size of the AMC. LIC gets the advantage of its premier
brand name and also the returns it had recently delivered in its liquid
fund category have been phenomenal.

SEGMENTATION OF MYSORE MARKET

Mysore market is broadly classified into 3 regions. They are as follows:

1. CBD (Central Business District)

2. SBD (Secondary Business District)
3. Sub-Urban and Peripheral Markets:
CBD (Central Business District):-

 CBD area for the Mysore city concentrates around the

Mysore Palace. All the major commercial developments and
Government office have come up in the close vicinity of the
Mysore palace. Major commercial streets are the Dhanvantri
road, Devarajaurs market, Sayaji road. Devarajaurs road, Sayaji
road are the commercial nerve of the Mysore city. Most of the
posh clubs of the city are situated in this area.
SBD (Secondary Business District)
 SBD includes areas like Jayalakshmipuram, especially the
Kalidas Road, Temple road, and the Gokulam road. Centurion
bank, HDFC, ING Vysya, and many other financing institutions
have made their presence especially in the SBD area. Known
corporate like iRobot and SDD Global Solutions exist here.
 Sub-Urban and Peripheral Markets
This is the major target area for us because large no. of corporate and
SMEs are located here. Major projects are being planned in this area,
especially in the north western part of the city with Hebbal Industrial
Area and towards the southern part of the city i.e., Nanjangud Area.
LIMITATIONS
Following are the hurdles we encounter in our path of success.

 Bank managers have a fear of losing float. Most of the banks

are reluctant in pushing their client’s investment in our debt fund
category as they feel that this will deplete the bank’s float. So they are
not very willing in suggesting their clients to invest money with us.

 Directly approaching clients creates problem if it happens to

be a bank’s counter. This is a serious issue that we often encounter.
Since bank managers have this fear of losing float so they don’t
welcome us directly approaching their clients. And if we do so it spoils
the relationship and we light lose on some other part of business from
the bank.

 Investors here in Mysore are conservative and they are

seldom willing to invest in units of mutual funds. Awareness level of
investors is also not very great and they still prefer investment in PSUs
over other private sector AMCs.
RECOMMENDATIONS
After gathering such valuable information and coming
across the aforesaid research findings this is what I
have as future strategies or recommendations.
 Rapport Building with Clients and all business partners. As
we have already seen that relationship is what drives business in
Mysore so the foremost strategy has to be the most basic one i.e.
rapport building. In order to get business it is really important to
build a sustaining relationship of mutual trust, harmony and
understanding. Once this is done we come on the same
wavelength with the client and a climate of trust and respect is
built and hence it becomes a lot easier to convince or persuade
the client.

 Issues with Bank managers and other partners need to be

diplomatically taken care of. Banks are very important channel
partners for distribution of our schemes and so it is of prime
importance to share a healthy as well as professional relationship
with them. Best would be if we go hand in hand.
  Creating more awareness about our products and frequently
informing clients is a must. Once we are in a relationship with
client we should treat him like a player and help him in winning.
If that happens that it will be a win-win situation for both of us.
Understanding customer needs and frequently make him aware of
our products would ultimately make our job easier.

 Initially the focus should be on counter activation. Last but

not the least this is going to be our initial action plan. We have to
increase our client base by activating as many counters as
possible and later on we can try and push the client to increase
the investment amount.

REFERENCES

www.wikipedia.org
outlookmoney.com
www.financialexpress.com
www.investopedia.com
www.valueresearchonline.com
www.thehindu.com
www.business-standard.com
www.reliancemutual.com
.