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A Project Report On “CUSTOMER RELATIONSHIP MANAGEMENT” Submitted in partial fulfillment of the requirement for the award of the degree of Master of Business Administration

Submitted by Nita Banerjee MBA/1040/08 Under the guidance of Mr . Ramkrishna Prasad Singh (Territory manager) Birla Sun Life Distribution Company Limited (Wealth Management) Ranchi-01, Jharkhand.

Department of Management Birla Institute of Technology MESRA, RANCHI-835215.

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CERTIFICATE OF APPROVAL
The foregoing project entitled “CUSTOMER RELATIONSHIP MANAGEMENT” is hereby approved as a credible study of research topic and has been presented in a satisfactory manner to warrant its acceptance as a prerequisite to the degree for which it has been submitted. It is understood that by this approval, the undersigned do not necessarily endorse any conclusion drawn or opinion expressed therein, but approve the project for the purpose for which it is submitted.

(Internal examiner)

(External examiner)

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DECLARATION
I hereby declare that the project CUSTOMER RELATIONSHIP MANAGEMENT submitted by me in partial fulfillment of the requirement for the award of Master of Business Administration of Birla Institute of Technology is my original work and no part of this report has been submitted earlier to any university or institution for the award of any other degree, Diploma. Fellowship or any other similar titles and the work have been published in any journal, Magazine, Periodicals or Newspaper as an article or research paper.

NITA BANERJEE BIT MESRA, RANCHI.

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Acknowledgement
This project has been a collaborative effort. I take this opportunity to thank all who have helped me in the preparation and successful completion of this project work. I express my sincere gratitude to the management of Birla Sun Life Distribution Limited, Ranchi for their kind consent given to me to complete my training in the organization. The immense help and support received from BSDL thereafter overwhelmed me during the project. I express my thanks to Mr. Ramkrishna Prasad Singh (Territory Manager, BSDL, Ranchi), my corporate guide for his supervision of my work. He gave valuable inputs throughout my project work. I thank Miss Abhilasha Kumari (Customer Relationship Manager, BSDL, Ranchi) who helped me in my area of concern. I would like to thank Mr. Ashit Ranjan (Unit Manager, BSDL, Ranchi) for his valuable insights, Mr. Ratnaraj Saha( Branch Manager, BSDL, AMC) who provided me the knowledge on Mutual Funds and Mr. Vidyut Raha(Executive, Apollo Sindhoori) for educating me on equity market. I express my sincere thanks to the management of Birla Institute of Technology, Mesra for their kind cooperation and encouragement. I would also like to thank my parents for their support and encouragement.

DATE:

NITA BANERJEE BIT, MESRA, RANCHI.

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PREFACE
Theoretical knowledge particularly in professional field is of little significance or value without its practical applications in real life situations. This is where summer training helps in making us students familiar with the professional setup. My summer training gave me an exposure of the corporate culture and during this process, I came to know the ups and downs of the job. My job at BSDL also gave me an opportunity to link my theoretical knowledge with the practical aspects of the job. The financial sector has gained a lot of importance in recent times. People are investing more and more in the various investment tools like Insurance, Mutual funds, Equities, Gold and such others. The public sector has been a major player in this area ever since the Indian independence but the scope of the Finance industry has increased after the private companies entered the market. Liberalization has played a major role in opening up the Indian economy and today many foreign companies, jointly with Indian companies, deal in financial products. Many companies offer financial products in India and the Aditya Birla group is one of the key players in the private sector. It is a well known fact that the name BIRLA speaks for itself and it needs no special introduction. It ranks fourth in the Insurance industry and fifth in Mutual funds. Birla Sun life Distribution Limited, a wing of the Aditya Birla group is a premier wealth management company that emphasizes on investment advisory and financial planning. Ranked among the top players in this segment, BSDL is driven by knowledge, expertise and experience. Its product range covers:      Life Insurance Mutual Funds Equity Broking Gold Real Estate

The first part of the project gives us an overview of the various investment tools like insurance, mutual funds, SIPs, equities, real estate. The second part gives us an idea about my topic that is ―customer relationship management”, its uses and areas of application. The language has been kept simple so that even a layman could understand. The third part consists of the survey and its analysis. The data collected has been well organized and presented with the help of graphs and charts. Hope the research findings and conclusions will be of use.

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CONTENTS
1. INTRODUCTION 2. OBJECTIVES OF THE STUDY 3. COMPANY PROFILE 4. OVERVIEW OF INVESTMENT TOOLS 5. CUSTOMER RELATIONSHIP MANAGEMENT 6. SEGMENTING AND TARGETING 7. MY PROGRESS AT BSDL 8. OBSERVATION AND LEARNING 9. RESEARCH METHODOLOGY 10. SURVEY 11. FINDINGS 12. RECOMMENDATIONS 13. CONCLUSION 13. BIBLIOGRAPHY 14. APPENDICES 7 8 9-20 21-34 35-41 42-43 44 45-52 53 54-58 59 60 61 62 63-65

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Introduction
Need for Study
The Project ―CUSTOMER RELATIONSHIP MANAGEMENT‖ deals with how financial organizations build relationships with new customers and enhance their services in order to retain the existing clients. Dealing with customers is one of the most delicate and complex tasks that an organization has to face. The main purpose behind opting for this topic was to get an idea as to how the financial sector adopts and implements CRM because when it comes to investments people would like to deal with the best vendors. When we look around us we see that the hand of business touches us in every walk of life. We're faced with products and services at every single turn. However not many of those products and service providers know the person who uses them. Major corporations fail to realize that it is the customer who is their biggest ally. Sometimes their employees prefer to treat them with indifference, at times with arrogance and sometimes even with anger. The customer is in reality the king, the one who makes the difference between a company‘s success and failure and yet the companies are all prone to making the same mistake at some point of time. This grave mistake, so often overlooked yet so profound in its impact, making the difference between the success and failure of million dollar enterprises is a company‘s "attitude" towards its customers. This approach is by far the most vital in any organization. Most organizations have an extremely faulty customer centered system. Several millions are lost yearly as corporations scramble to make profits, beat competitors, and stay ahead in the rat race but they are not open to customer suggestions and more often than not they do not provide the customer with a proper avenue to vent his ideas. This often leads to unhappy customers and eventually their loss. This is where proper Customer Relationship Management becomes important as it helps business use technology and human resources to gain insight into the behavior of customers and the value of those customers. As customers gain more and more knowledge about a particular product, their perception towards it changes. Customer perception becomes an important component of relations with customers. An organization should be prepared to deal with the changes in customer perception. This project has helped me enhance my knowledge about the importance of Customer relations, particularly in the financial sector. After working at BSDL for over a month and interacting with the existing customers I found out that they are quite satisfied with the services that they get there. I came to know about the various CRM activities carried out there and how the employees place service over everything else.

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Objectives
1. Proper understanding of the various investment tools that form the financial sector. 2. Know the importance of Customer Relationship Management in the financial sector. 3. Conduct market survey on a sample selected from the entire population and derive opinions based on the research. 4. According to the market survey, get to know about the investment scenario among individuals in Ranchi. 5. Prepare a report based on the survey. 6. Find out the most popular investment tool among people. 7. Study of the CRM practiced at Birla Sun Life Distribution Limited. 8. Customer perception about the various investment tools available. 9. Know ways to improve customer service.

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COMPANY PROFILE

LATE ADITYA BIRLA

KUMAR MANGALAM BIRLA

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting.

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Company Profile

Aditya Birla Group
The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The Aditya Birla Group‘s products and services offer distinctive customer solutions worldwide. The Group has operations in 20 countries - India, Thailand, Laos, Indonesia, Philippines, Egypt, China, Canada, Australia, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea. A US $28 billion corporation with a market capitalization of US $31.5 billion and in the League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. Over 50 per cent of its revenues flow from its operations across the world. Its 66 state-of-the-art manufacturing units and sectoral services span India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. The Aditya Birla Group is a dominant player in all of the sectors in which it operates. These sectors include viscose staple fibre, non-ferrous metals, cement, and viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators and financial services. The Group has also made successful forays into the IT and BPO sectors. In India, the Group has been adjudged “The Best Employer in India and among the top 20 in Asia” by the Hewitt-Economic Times and Wall Street Journal Study 2007.

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IMPORTANT FACTS AT A GLANCE

Globally the Aditya Birla Group is: (1). A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia. (2). No.1 in viscose staple fibre. (3). The fourth largest producer of insulators. (4). The fourth largest producer of carbon black. (5). The 11th largest cement producer globally, the seventh largest in Asia and the second largest in India. (6). Among the world's top 15 BPO companies and among India's top four. (7). Among the best energy efficient fertilizer plants.

In India: (1). A premier branded garments player. (2). The second largest player in viscose filament yarn. (3). The second largest in the chlor-alkali sector. (4). Among the top five mobile telephony companies. (5). A leading player in life insurance and asset management.
(6).

Among the top three supermarket chains in the retail business.

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LIGHTING OUR PATH Vision
________________________ To be a premium global conglomerate with a clear focus on each business.

Mission
_______________________ To deliver superior value to our customers, shareholders, employees and society at large.

VALUES
______________________ (1). Integrity (2) .Commitment (3). Passion (4). Seamlessness (5). Speed

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Various Companies of Aditya Birla Group SECTORS
1. ALUMINIUM: Hindalco industries limited Indal( subsidiary of Hindalco) 2. COPPER: Birla Copper (Hindalco industries limited) Hindalco Industries Ltd. (Aditya Birla Minerals Limited) 3. CEMENT: Grasim Industries Ltd. UltraTech Cement Ltd. 4. CARBON BLACK: Aditya Birla Nuvo Ltd (Hi-Tech Carbon) Thai Carbon Black Co. Ltd. Alexandria Carbon Co. S.A.E Liaoning Birla Carbon Co. Ltd. 5. TEXTILES: Grasim Industries Limited AV Cell Inc. AV Nackawic Inc. 6. FERTILIZERS: Indo Gulf
Birla Copper (Hindalco Industries Ltd.) India

COUNTRY

India

India Australia

India

India Thailand Egypt China

India Canada Canada

7.CHEMICALS: Grasim Industries Limited Aditya Birla Nuvo Limited Tanfac Industries Ltd. Aditya Birla Chemicals (India) Limited Aditya Birla Chemicals(Thailand)Limited Thai Peroxide Co. Ltd. PT. Indo Raya Kimia
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India

Thailand Thailand Indonesia

SECTORS
8. MINING: Essel Mining and Industries Limited 9. FATTY ALCOHOL/FATTY ACID: Pan Century Surfactants Inc. 10. INSULATORS: Aditya Birla Insulators 11. SOFTWARE: PSI Data Systems Limited (subsidiary of Aditya Birla Nuvo Ltd.) 12. BPO:
Aditya Birla Minacs Worldwide Limited

COUNTRY

India

Philippines

India

India

India

(subsidiary of Aditya Birla Nuvo Ltd.) 13. FINANCE AND INSURANCE: Birla Global Finance Company Limited Birla Sun Life Insurance Company Limited Birla Sun Life Asset Management Limited Birla Sun Life Distribution Company Limited Birla Insurance Advisory Services Limited 14. TELECOM: Idea Cellular India

India

15. RETAIL: Aditya Birla Retail Limited India

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Sun Life Financial Inc.
Sun Life Financial Inc. is a leading financial services organization headquartered in Toronto, Canada, operating in key markets around the world. The Sun Life Financial group of companies and their joint ventures offer individuals and corporate customers a diverse range of financial products and services that fall into two principal business areas: wealth management and protection. Throughout its international operations, Sun Life Financial has an employee base of approximately 13,800 people plus an extensive global distribution network of career sales forces, independent agents, investment dealers and financial planners. Tracing its roots back to 1865, Sun Life Financial Inc. and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Indonesia, India and China. As on 30th June 2007, Sun Life Financial Inc. manages assets worth CDN $435 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol "SLF".

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Aditya Birla Nuvo
Aditya Birla Nuvo Ltd is a diversified conglomerate and the platform that has launched many new businesses for India‘s premier business house, the Aditya Birla Group. Aditya Birla Nuvo has a balanced portfolio of traditional and new age businesses under its fold, ranging from textiles to life insurance. The razor sharp focus on each business has made it a leading player in most segments, including viscose filament yarn, carbon black, branded garments, agri business, textiles and insulators. Over the past few years, Aditya Birla Nuvo, through its subsidiaries and joint ventures, has made successful forays into life insurance, telecom, business process outsourcing (BPO), IT services, asset management and financial services. Powered by an intellectual capital of over 37,000 employees and an optimum mix of revenue and profit streams, the company is in a strong position to invest in high growth businesses to maximize long-term shareholder gains. As a leading player, Aditya Birla Nuvo ranks as:       India's second largest producer of viscose filament yarn (VFY). The country's largest premium branded apparel company. The second largest producer of carbon black in India. Largest manufacturer of linen fabric in India. Among the most energy efficient fertilizer plants. India‘s largest and the world‘s fourth largest producer of insulators. Among Aditya Birla Nuvo‟s joint ventures and subsidiary companies are:  Idea Cellular Limited, the fifth largest mobile telephony service provider in India.  Birla Sun Life Insurance, one of the leading life insurance companies in India.  Birla Sun Life Asset Management, one of the leading asset management companies in India.  Aditya Birla Minacs Worldwide Limited, among the top five BPO players in the country by revenue size.

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Birla Sun Life Distribution Company Ltd ('BSDL')
Birla Sun Life Distribution Company Ltd ('BSDL') is a wholly owned subsidiary of Aditya Birla Nuvo Ltd. (Nuvo). Earlier it was established as a joint venture between Aditya Birla Nuvo and Sun Life (India) Distribution Investments. In March 2009, Nuvo purchased the remaining 50.001 per cent stake from its joint venture partner. The company was launched in the year 1999 with the vision to be 'the first preference of our customers as a leading integrated provider of financial services through superior value creation and technology. BSDL offers wealth management, financial planning and investment solutions, mainly through a range of products like mutual funds, insurance, PE funds, alternate investments, select fixed deposits and IPOs and structured products. The company provides life insurance products of Birla Sun Life Insurance, sourced through its wholly owned subsidiary BSDL Insurance Advisory Services Ltd (BSDLIAS), licensed to act as a Corporate Agent of Birla Sun Life Insurance Company Limited. The Corporate & Institutional section caters to banks, financial institutions and other companies; Wealth Management service focuses on HNIs; while the Retail section offers solutions through Channel Partners and branches. A combination of personal attention, ethical practices, strong research, state-of-the-art technology, streamlined processes and innovative marketing has made BSDL one of the premier distribution companies in India, well poised to serve the growing economy and increasing investor population. BSDL has also been honoured with awards and certifications by leading industry watchers. Noteworthy achievements:  Among the top distributors in the country with AUM (Assets under Management) of Rs 12,242 cr (as of 31 March 2008) from 2.5 lakh investors.  Network of 40 branches in 29 cities across India and growing, besides over 7,800 business associates.  Employee strength of over 450, five times of last year; slated to cross 1,000 soon.

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Some of the popular products of Birla Sun Life:
Mutual Fund

1. Equity Funds(1). Diversified Funds: (4). Cash Funds: a) Birla Sun Life Frontline Equity Fund. b) Birla Sun Life Tax Plan.. c) Birla Sun Life Index Fund a) Birla Sun Life Cash Plus Fund. b) Birla Sun Life Cash Manager. 3. Hybrid Funds(2). Theme Based Funds: a) Birla Sun Life Infrastructure Fund. b) Birla Sun Life Gen Next Fund. c) Birla Sun Life Opportunity Fund. (1). Balanced Funds: a) Birla Sun Life ‗95 Fund. b) Birla Sun Life Freedom Fund. (2). Monthly Income Plan: a) Birla Sun Life MIP. b) Birla Sun Life MIP-2. (3). Fund of Funds: a) Birla Sun Life Asset Allocation Fund. (4). Capital Protected Funds: a) Birla Sun Life Capital Protection Oriented Fund. 4. Offshore Schemes: (2). Gilt Funds: a) Birla Sun Life Gilt Plus Fund. b) Birla Sun Life Government Securities Fund. (3). Short Term Funds: a) Birla Sun Life Savings Fund. b) Birla Sun Life Short Term Fund.
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(3). Sectoral Fund: a) Birla Sun Life Buy India Fund. b) Birla Sun Life New Millennium Fund. 2. Debt Schemes(1). Long Term: a) Birla Sun Life Income Fund. b) Birla Sun Life Dynamic Bond Fund.

a) India Advantage Fund. b) Excel India Fund.

Life Insurance Schemes

1. Protectiona) Birla Sun Life Insurance Term Plan. b) Birla Sun Life Insurance Premium Back Term Plan.

5. Children Plana) Birla Sun Life Insurance Children Dream Plan.

6. Rural Schemes2. Savinga) Birla Sun Life Insurance Dream Plan. b) Birla Sun Life Insurance Saral Jeevan Plan. c) Birla Sun Life Insurance Platinum Plus. a) Birla Sun Life Insurance Bima Suraksha Super. b) Birla Sun Life Insurance Bima Dhan Sanchay.

7. Rider Schemes3. Health Solutionsa) BSLI Health Plan. b) BSLI Universal Health Plan. b) Birla Sun Life Insurance Accidental Death Rider. c) Birla Sun Life Insurance Term Rider. d) Birla Sun Life Insurance Critical Illness Rider. e) Birla Sun Life Insurance Waiver of Premium

4. Retirement Schemesa) Birla Sun Life Insurance Secure 58 Plan.

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Apollo Sindhoori Capital Investments Limited (ASCIL)
Apollo Sindhoori Capital Investments Limited (ASCIL) is a leading player in broking space with nearly 14 years of experience. Incorporated in 1995, the company became a part of Aditya Birla Group in March 2009, when the Group acquired 76 per cent of the company through Aditya Birla Nuvo.The Aditya Birla Group is a household name in India, a US $28 billion conglomerate that is in the league of the Fortune 500 companies. The Aditya Birla Group has a strong presence across various financial services verticals as a part of the Aditya Birla Financial Services Group (ABFSG) that include life insurance, fund management, distribution and wealth management, security based lending, insurance broking and private equity. The six companies representing ABFSG are: a. b. c. d. e. f. Birla Sun Life Insurance Company Birla Sun Life Asset Management Company Birla Sun Life Distribution Company Aditya Birla Capital Advisors Birla Global Finance Company and, Birla Insurance Advisory and Broking Services.

The consolidated revenues from these companies crossed the US $1 billion mark, in 2007-2008. Headquartered in Chennai, ASCIL is listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE). It is also registered as depository participant with both National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Limited (CDSL). ASCIL offers following services: 1. Trading facility in equity segment on and derivative segment on NSE and BSE through a single screen 2. Trading facility in commodity segment, including bullion, oils, gaur seed etc. through its subsidiary, Apollo Sindhoori Commodities Trading Limited 3. Depository Participant (DP) services of NSDL and CDSL at major locations 4. Online bidding for initial public offering (IPO) 5. Distribution of mutual funds

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INVESTMENT TOOLS

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MUTUAL FUND

Concept and Introduction of Mutual Fund:
In a mutual fund, many investors contribute to form a common pool of money. This pool of money is invested in accordance with a stated objective. The ownership of the fund is thus joint or ‗mutual‘; the fund belongs to all investors. A single investor‘s ownership of the fund is in the same proportion as the amount of the contribution made by him bears to the total amount of the fund. A mutual fund uses the money collected from investors to buy those assets which are specifically permitted by its stated investment objective. Thus a growth fund would buy mainly equity assetsordinary shares, preference shares, warrants etc. An income fund would mainly buy debt instruments such as debentures and bonds. The units held by an investor evidence the ownership of the fund‘s assets. The value of the total assets of the fund when divided by the total number of units issued by the mutual fund gives the value of one unit. This is called the Net Asset Value (NAV) of one unit.

Characteristics of Mutual Fund:
       The Mutual Fund belongs to those investors who have invested their money for future earnings. It is managed by professionals who charge the fees for their services, from the fund. Investors purchase Mutual Fund shares from the fund itself (or through a broker for the fund) instead of from other investors on a secondary market. The price that investors pay for Mutual Fund shares is the fund's per share NET ASSET VALUE (NAV) which is updated every day plus any shareholder‘s fees that the fund imposes at the time of purchase (such as sales loads). Mutual Fund shares are "REDEEMABLE," which means investors can sell their shares back to the fund (or to a broker acting for the fund). Mutual Funds generally create and sell new shares to accommodate new investors. In other words, they sell their shares on a continuous basis, although some funds stop selling when, for example, they become too large. The investment portfolios of mutual funds typically are managed by separate entities known as "ASSET MANAGEMENT COMPANY".

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TYPES OF FUNDS

Schemes According to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period. (A). Open-Ended Fund/ Scheme: An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity. These funds are not generally listed on any exchange. (B). Close-Ended Fund/ Scheme: A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. These mutual funds schemes disclose NAV generally on weekly basis.

Schemes According to Investment Objective:
A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. In general, mutual funds fall into three general categories:
 Equity Funds invest in shares or equity of companies.  Fixed-Income funds invest in government or corporate securities that offer fixed

rates of return.
 Balanced Funds invest in a combination of both stocks and bonds.

(A). Growth / Equity Oriented Scheme: The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.
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(B). Income / Debt Oriented Scheme: The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. (C). Balanced Fund: The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. The NAVs of such funds are likely to be less volatile compared to pure equity funds. (D). Money Market or Liquid Fund: These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. (E). Gilt Fund: These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes. (F). Index Funds: Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weight age comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors.

.

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SYSTEMATIC INVESTMENT PLAN (SIP)  What is Systematic Investment Plan? :  A specific amount should be invested for a continuous period at regular intervals
    under this plan SIP is similar to a regular saving scheme like a recurring deposit. It is a method of investing a fixed sum regularly in a mutual fund. SIP allows the investor to buy units on a given date every month. The investor decides the amount and also the mutual fund scheme. While the investor's investment remains the same, more number of units can be bought in a declining market and less number of units in a rising market. The investor automatically participates in the market swings once the option for SIP is made.

 Benefits of Systematic Investment Plan:

a) Power of compounding: The power of compounding underlines the essence of making money work if only invested at an early age. The longer one delays in investing, the greater the financial burden to meet desired goals. Saving a small sum of money regularly at an early age makes money work with greater power of compounding with significant impact on wealth accumulation. b) Rupee cost averaging: Timing the market consistency is a difficult task. Rupee cost averaging is an automatic market timing mechanism that eliminates the need to time one's investments. Here one need not worry about where share prices or interest are headed as investment of a regular sum is done at regular intervals; with fewer units being bought in a declining market and more units in a rising market. c) Convenience: SIP can be operated by simply providing post dated cheques with the completed enrolment form or give ECS instructions. The cheques can be banked on the specified dates and the units credited into the investor's account. The SIP facility is available in the Principal Income Fund, Monthly Income Plan, Child Benefit Fund, Balanced Fund, Index Fund, Growth Fund, Equity fund and Tax Savings Fund. d) SIP features: Disciplined investing is vital to earning good returns over a longer time frame. Investors are saved the bother of identifying the ideal entry and exit points from volatile markets. SIP options such as equity, debt and balanced schemes offer a range of investment plans. While there is no entry load on SIP, investors face an exit load if the units are redeemed within a stipulated time frame. The success of the SIP hinges on the performance of the selected scheme. The plan aims at a better future for its investors as an SIP investor gets good rate of returns compared to a one time investor.
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INSURANCE
We can say that insurance is protecting the economic value of any living or non-living asset. Insurance can be broadly classified as: 1. Life Insurance 2. Non-Life insurance or general insurance. What Is Life Insurance? Life insurance offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between the insured person and the company or "carrier" that is providing the insurance. If the insured person dies while the contract is in force, the insurance company pays a specified sum of money free of income tax — "cash benefits" — to the person or persons he name as beneficiaries Types of Life Insurance Policies: (1). Endowment Policy: An endowment policy covers risk for a specified period. Endowment life insurance pays the face value of the policy to the beneficiary on death of the insured person. If nothing unfortunate happens, at the end of the specified period the sum assured is paid back to the policy holder along with the accumulated bonus. (2). Money Back Policy: Money back also covers risk for a specified period. This type of policy provides periodic payments to the policy holder during the currency of the policy and the balance of the survival amount with accumulated bonus at the expiry of the term of the policy. In case of unfortunate death of the policy holder during the term of the policy, the face value of the policy is paid to the beneficiaries without making any kind of deductions. (3). Whole Life Policies: A whole life policy runs as long as the policy holder is alive usually requiring the payment of premiums throughout the life. The insured amount and the bonus is payable only to the beneficiary upon the death of the policy holder (4). Term Life Policies: These policies are for a specified term but usually without any survival benefits. Therefore, the premium on this type of policies is lower than Endowment or Money back policies. The insured amount is payable to the beneficiary in case of death of the insured person during the term of the policy. (5). Joint Life Policies: These policies are similar to endowment policies and offer maturity benefits to the policy holders apart from covering the risks. The Joint Life policies cover two lives simultaneously and offer unique advantage to a married couple or to partners in a business firm. (6). Group Insurance Policies: The Group Insurance policies offer life cover to a group of persons. These policies are no survival benefit policies and are usually issued at very low premiums. (7). Annuities: An annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum received every year, every half-year or every month, either for life or for a fixed number of years.
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GENERAL INSURANCE
What is General Insurance? Insurance other than ‗Life Insurance‘ falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown, there are policies that cover the hull of ships and so on. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business. In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. Where a property is undervalued for the purposes of insurance, the insured will have to bear a rateable proportion of the loss. Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service providers, i.e., hospitals. The Third Party Administrators also provide service for reimbursement claims. Sometimes the insurers themselves process reimbursement claims. Accident and health insurance policies are available for individuals as well as groups. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Normally when a group is covered, insurers offer group discounts. Liability insurance covers such as Motor Third Party Liability Insurance, Workmen‘s Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes— Motor Vehicles Act, The Workmen‘s Compensation Act etc. Some of the covers such as the foregoing (Motor Third Party and Workmen‘s Compensation policy) are compulsory by statute. Liability Insurance not compulsory by statute is also gaining popularity these days. Many industries insure against Public liability. There are liability covers available for Products as well. Suitable general Insurance covers are necessary for every family. It is important to protect one‘s property, which one might have acquired from one‘s hard earned income. Losses created by catastrophes such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. Also organizations or industries that are self-financed should ensure that they are protected by insurance. Most general insurance covers are annual contracts. However, there are few products that are long-term.
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DEBT
Debt is that which is owed; usually referencing assets owed, but the term can also cover moral obligations and other interactions not requiring money. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned. Some companies and corporations use debt as a part of their overall corporate finance strategy. A debt is created when a creditor agrees to lend a sum of assets to a debtor. In modern society, debt is usually granted with expected repayment; in many cases, plus interest. -Payment: Before a debt can be made, both the debtor and the creditor must agree on the manner in which the debt will be repaid, known as the standard of deferred payment. This payment is usually denominated as a sum of money in units of currency, but can sometimes be denominated in terms of goods. Payment can be made in increments over a period of time, or all at once at the end of the loan agreement.

Types of debt: A company uses various kinds of debt to finance its operations. The various types of debt can generally be categorized into: 1). Secured and unsecured debt: A debt obligation is considered secured if creditors have recourse to the assets of the company on a proprietary basis or otherwise ahead of general claims against the company. Unsecured debt comprises financial obligations, where creditors do not have recourse to the assets of the borrower to satisfy their claims.

2). Private and public debt: Private debt comprises bank-loan type obligations, whether senior or mezzanine. Public debt is a general definition covering all financial instruments that are freely tradable on a public exchange or over the counter, with few if any restrictions.

3). Syndicated and bilateral debt: Loan syndication is a risk management tool that allows the lead banks underwriting the debt to reduce their risk and free up lending capacity. A basic loan is the simplest form of debt. It consists of an agreement to lend a principal sum for a fixed period of time, to be repaid by a certain date. In commercial loans interest, calculated as a percentage of the principal sum per year, will also have to be paid by that date. A syndicated loan is a loan that is granted to companies that wish to borrow more money than any single lender is prepared to risk in a single loan, usually many millions of dollars. In such a case, a syndicate of banks can each agree to put forward a portion of the principal sum.

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BONDS
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance longterm investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit or commercial paper are considered to be money market instruments and not bonds. Bonds must be repaid at fixed intervals over a period of time Bonds and stocks are both securities, but the major difference between the two is that stockholders have an equity stake in the company (i.e., they are owners), whereas bondholders have a creditor stake in the company (i.e., they are lenders). Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. An exception is a consol bond, which is perpetuity (i.e., bond with no maturity). Features of bonds The most important features of a bond are: Nominal, principal or face amount: The amount on which the issuer pays interest, and which has to be repaid at the end. Issue price: The price at which investors buy the bonds when they are first issued, which will typically be approximately equal to the nominal amount. The net proceeds that the issuer receives are thus the issue price, less issuance fees. Maturity date: The date on which the issuer has to repay the nominal amount. As long as all payments have been made, the issuer has no more obligations to the bond holders after the maturity date. The length of time until the maturity date is often referred to as the term or tenor or maturity of a bond. Coupon: The interest rate that the issuer pays to the bond holders. Usually this rate is fixed throughout the life of the bond. It can also vary with a money market index. The name coupon originates from the fact that in the past, physical bonds were issued which had coupons attached to them. On coupon dates the bond holder would give the coupon to a bank in exchange for the interest payment. The quality of the issue: It influences the probability that the bondholders will receive the amounts promised, at the due dates. This will depend on a whole range of factors. Indentures and Covenants: An indenture is a formal debt agreement that establishes the terms of a bond issue, while covenants are the clauses of such an agreement. Covenants specify the rights of bondholders and the duties of issuers, such as actions that the issuer is obligated to perform or is prohibited from performing.
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High yield bonds: These bonds are rated below investment grade by the credit rating agencies. As these bonds are more risky than investment grade bonds, investors expect to earn a higher yield. These bonds are also called junk bonds. Coupon dates: The dates on which the issuer pays the coupon to the bond holders. In the U.S. and also in the U.K. and Europe, most bonds are semi-annual, which means that they pay a coupon every six months. Optionality: Occasionally a bond may contain an embedded option; that is, it grants option-like features to the holder or the issuer. Callability: Some bonds give the issuer the right to repay the bond before the maturity date on the call dates; see call option. These bonds are referred to as callable bonds. Most callable bonds allow the issuer to repay the bond at par. With some bonds, the issuer has to pay a premium, the so called call premium. This is mainly the case for high-yield bonds. These have very strict covenants, restricting the issuer in its operations. To be free from these covenants, the issuer can repay the bonds early, but only at a high cost. Putability: Some bonds give the holder the right to force the issuer to repay the bond before the maturity date on the put dates. This is called putability.

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REAL ESTATE

Introduction: The term „real estate‟ is defined as land, including the air above it, the ground below it, and any buildings or structures on it. It is also referred to as realty. It covers residential housing, commercial offices, trading spaces such as theatres, hotels and restaurants, retail outlets, industrial buildings such as factories and government buildings. Real estate involves the purchase, sale, and development of land, residential and non-residential buildings. The main players in the real estate market are the landlords, developers, builders, real estate agents, tenants, buyers etc. The activities of the real estate sector encompass the housing and construction sectors also. The real estate sector in India has assumed growing importance with the liberalization of the economy. The consequent increase in business opportunities and migration of the labour force has, in turn, increased the demand for commercial and housing space, especially rental housing. Developments in the real estate sector are being influenced by the developments in the retail, hospitality and entertainment (e.g., hotels, resorts, cinema theatres) industries, economic services (e.g., hospitals, schools) and information technology (IT)-enabled services (like call centers).

Merits:  After stocks, there is probably no asset class like property that can preserve the value of your portfolio from the eroding effect of inflation. It is widely held that gold is also a good foil to counter inflation. But over the years, gold has performed poorly on the return parameter.  Another important touch a real estate fund adds to your portfolio is that of stability. Although property prices can also be volatile, the volatility is a far cry from what investors are used to seeing in stocks for instance. When turbulence in global oil prices or economic upheavals rocks your portfolio, you can expect real estate/real estate funds to be the rock in your portfolio. Limitations:  Real estate funds have the same risks that are associated with equity/debt mutual funds. For instance i.e. you could make the wrong choice while selecting a real estate fund in which case you could be saddled with a non-performer. Although this is not a limitation with real estate funds per se, it serves to highlight that there can be poorly managed real estate funds just like there can be poorly managed equity/debt funds.  If with equities three years is the minimum investment time frame, then with real estate investments you need to be even more patient. Buying property, developing it and then renting it out or selling it, is a high gestation activity. It could take some time before your real estate mutual fund actually starts making money.
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EQUITY BROKING
A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion US at the beginning of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value, 11 times the size of the entire world economy. The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. The stock market in the India includes the trading of all securities listed on the NSE and BSE.

Types of stock:
Stock typically takes the form of shares of either common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. 1. Preferred Stock: Preferred stock, also called preference shares, is typically a 'higher ranking' stock than voting shares, and its terms are negotiated between the corporation and the investor. Preferred stock usually carries no voting rights, but may carry priority over common stock in the payment of dividends and upon liquidation. Preferred stock may carry a dividend that is paid out prior to any dividends being paid to common stock holders. Preferred stock may have a convertibility feature into common stock. Preferred stockholders will be paid out in assets before common stockholders and after debt holders in bankruptcy. 2. Common Stock: Common stock is a form of corporate equity ownership, a type of security. It is called "common" to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive their funds after preferred stock holders, bondholders, creditors, etc. On the other hand, common shares on average perform better than preferred shares or bonds over time. Common stock is usually voting shares, though not always. Holders of common stock are able to influence the corporation through votes on establishing corporate objectives and policy, stock splits, and electing the company's board of directors. Some holders of common stock also receive pre-emptive rights, which enable them to retain their proportional ownership in a company should it issue another stock offering. Additional benefits from common stock include earning dividends and capital appreciation.
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3. Registered Share: A Registered share is a stock that is registered on the name of the exact owner. If the owner of such a share sells his share, the new owner must register with name and address. Registered shares offer issuers the advantage, enabling them to always know exactly who their shareholders are. Unexpected surprises with active investors could be prohibited with that stock-vehicle.

4. Voting Share: A voting share (also called Common stock or Ordinary share) is a share of stock giving the stockholder the right to vote on matters of corporate policy and the composition of the members of the board of directors.

Stock Exchange:
A stock exchange, (formerly a securities exchange) is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities.

The role of stock exchanges: 1. Raising capital for businesses: The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public.

2. Mobilizing savings for investment: When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic
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sectors such as agriculture, commerce and industry, resulting in stronger economic growth and higher productivity levels and firms. 3. Facilitating company growth: Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion. 4. Corporate governance: By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations imposed by public stock exchanges and the government. Consequently, it is alleged that public companies tend to have better management records than privately-held companies. 5. Creating investment opportunities for small investors: As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors. 6. Government capital-raising for development projects: Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them, thus loaning money to the government. 7. Barometer of the economy: At the stock exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. An economic recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy.

The financial market has a wide scope and it covers many other investment tools like bank deposits, debentures, gold and such others. The market is so huge that it is almost impossible to present all of them in a compressed form but I have tried to deal with the important ones in the project.

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Customer Relationship Management

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CUSTOMER RELATIONSHIP MANAGEMENT
 INTRODUCTION: In order to maintain a successful business, the business must understand and maintain a positive relationship with its customers. Customer Relationship Management (CRM) is the process of bringing the customer and the company closer together. There are many different areas in which Customer Relationship Management can be implemented. The goal of CRM is to help a company maintain current customers, as well as gain new customers. Relationship marketing is concerned with how organizations manage and improve their relationship with customers for long term profitability, not only of the organizations but the customers as well. Customer profitability is the cornerstone of Customer Relationship Management. CRM is a strategic tool for marketers to acquire customers, retain them, and maintain long-term profitable relationships with them. It uses information technology to achieve these objectives. Competitive pressures have led marketers to realize the necessity of customer retention to survive in a deregulated economy. CRM has enabled the shift in approach from being product-centric to being customer-centric. In addition to maximizing customer value, CRM helps marketers to cross-sell products, achieve longterm profitability, and build the brand.





 DEFINITION:Customer Relationship Management (CRM) refers to the methodologies and tools that help businesses manage customer relationships in an organized way. Customer relationship management basically includes: - CRM processes that help identify and target their best customers, generate quality sales leads, and plan and implement marketing campaigns with clear goals and objectives; - CRM processes that help form individualized relationships with customers (to improve customer satisfaction) and provide the highest level of customer service to the most profitable customers; - CRM processes that provide employees with the information they need to know their customers' wants and needs, and build relationships between the company and its customers. Customer relationship management tools include software and browser-based applications that collect and organize information about customers. For instance, as part of their CRM strategy, a business might use a database of customer information to help
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construct a customer satisfaction survey, or decide which new product their customers might be interested in.

 CONTENT:It is a process or methodology used to learn more about customers‘ needs and behavior in order to develop stronger relationships with them. There are many technological components to CRM but thinking about CRM in primary technological terms is a mistake. The more useful to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends.

 BENEFITS:
A properly designed and deployed CRM system will help the business leverage technology and people resources to better manage sales, marketing and service processes. In doing so, the company will gain a consistent picture of its customers and their needs. This translates to value, and allows the company to strengthen the relationship it has with each customer to retain them as an asset to its business. Some of the more tangible benefits of a good CRM solution are:
    

Improved customer service Increased pipeline of new leads Increase customer loyalty and satisfaction Streamline marketing and sales processes Decrease lengthy sales cycles

 REQUISITES OF A SUCCESSFUL CRM IMPLEMENTATION:  First and foremost, the executive level has to commit to the project. The management has to make certain that they understand the importance of their role in upholding that commitment and communicate it downwards through the organization. The project has to be fun and rewarding. The key employees who will be using the system should be given incentives and their involvement in the early planning and implementation stages is important. Their feedbacks should also be taken seriously as it will give them ownership in the project. The entire project should be broken down into smaller manageable pieces with small milestones and all the departments should be involved. CRM systems collect huge amounts of data very rapidly so a robust database platform is a must. Make sure the solution can grow and perform accordingly. The CRM system is designed around the customer and prospect so it should be kept in mind that it is used to its potential in serving them well.
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  

 CRM IN THE FINANCIAL SECTOR :Like every other industry the financial services sector is also witnessing a plethora of changes. Facing umpteen challenges, the industry despite its phenomenal growth, has witnessed slump in some areas, the main reason for this being changes, vast competition, increased costs, decreased efficiency, inadequate client relationships and poor sales processes. Something vital is needed to cut through the waves and make the sector boom. Organizations need to basically better their relations with their customers in an effort to sustain them. Financial firms find it almost impossible to have a complete and holistic view of their customers and that puts them at a disadvantage when knowing their customers is a criteria. More often than not selling financial services and products is infinitely more difficult than the work other industries face. CRM for financial services enables the financial firm to know the customer better. In addition it helps uncover potential customers and improves overall customer service. It helps build an advantage over competitors as firms are enabled to increase their intelligence about the customer. CRM manages to provide this information to almost every employee. CRM for financial services endeavors to improve and encourage relationship building with existing and potential customers, the various departments within the organization, management etc. The dilemma that most financial institutions face is that they do not store their valuable customer data in a comprehensible or easily assessable manner. In financial firms this intelligence is generally scattered throughout the firm and is almost unusable. CRM encourages financial services firms in changing their scattered data into something that can be used by every employee in an easy manner. This benefits the analysts, asset managers, financial professionals.

 OBJECTIVES OF CRM IN THE FINANCIAL SECTOR
      

Identification of potential customers Provision of data regarding history and preferences of investors Increase of customer knowledge of employees Provision of an excellent view of customer relationships Encouraging customer relationships Increasing and improving financial productivity Storage and provision of financial data of customers
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       

Easy access to collated financial data Managing financial deals Evaluation of a potential investment Aiding client acquisition Investment selling Tracking and monitoring financial deals Aiding the sales team in the provision of customers needs Enabling the building of trust for brokers, agents and financial planners.

 LIMITATIONS OF CRM FOR THE FINANCIAL SECTOR :   

The complexity and magnanimity of this particular industry makes it harder to adopt a holistic and integrated customer approach. Financial firms tend to focus more on the product than on the customer. In this respect they are almost oblivious to them. Since most financial organizations are considerably big in size, the cost involved is considerably higher. There are various challenges facing the industry and these all need to be overcome in order to actually succeed at the implementation of CRM.

 THE BOTTOM LINE :We have seen above both the benefits and pitfalls of CRM so now the question arises as to whether CRM for financial services actually benefiting the financial services sector? The answer is yes. Obtaining, maintaining and basically utilizing a customer database in an effort to maximize or improve customer relationships will go a long way in increasing overall productivity. A failure to focus on these relationships can prove detrimental while knowing and indulging your customer preferences can go a long way in securing and raising profitability. A well maintained CRM will help in customer retention which is as important a job as customer acquisition. Customer loyalty increases the profitability of any organization so customer relationship management becomes all the more important.

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KEYS TO SUCCESSFUL CRM IN THE FINANCIAL SECTOR
Insurance and mutual funds are complex products where personalized service—achieved through an intimate knowledge of customers and their histories with a company—is critical to making sales. As investment options broaden and products grow more complex, customers seek superior, personalized service more than ever. The situation has become graver as bad economy has hurt investment income. People have become more and more skeptical about the market conditions and many have lost faith in the market. Moreover there is an extremely narrow window of time wherein an insurance call center representative or an advisor holds a customer‘s attention. To maintain competitive edge and viability, the financial companies are focusing intently on delivering superior customer service. A comprehensive customer relationship management (CRM) strategy addresses three imperatives: Gain a Unified Enterprise View of Customers: When we focus on the companies providing financial services, we see that there is a wealth of valuable information about individual customers: we know who they are and what insurance and mutual fund products and services they buy. We know their history of claims and the status of their accounts. We may even know about their opinions and preferences, or whether promotions have attracted their response. For the financial companies, "know thy customer" can be a challenging imperative. Customer data may be divided among product lines, or among legacy claims, policy and billing systems. If the company has expanded its customer base through mergers or acquisitions, its information may be even more fragmented. Here a holistic, personalized service can be the differentiating factors that retain good customers. Retain Customers with Great Service: Customer analysis and behavior prediction are two important foundations to be used as a basis for a deeper, more advanced level of customer understanding. By making customer analysis and behavior prediction data immediately accessible at the desktop, sales efforts are optimized and customer loyalty is strengthened, as individual customers feel that their needs are understood and met in a way that is fast and convenient. Customer analysis and behavior prediction can also be used to identify life events and/or extended relationships, which can be highly useful in improving profitability from individual customers. The more products one can sell to a given customer, the less apt he/she is to migrate to another provider. However the insurer has to back the sales with good service like sending the statements on time, suggesting proper funds that would yield high returns for the customer. This would make the client feel more important and they would tend to stick with the company rather than going to some other company. Thus it would help in increasing customer loyalty which would further the organization‘s profits. Retention of customers is also important as customer
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acquisition costs are much higher than customer retention so before spending valuable time and money on new customers and clients one does not currently have a relationship with one should consider the following statistics
  

Repeat customers spend 33% more than new customers. Referrals among repeat customers are 107% greater than non-customers. It costs six times more to sell something to a prospect than to sell that same thing to a customer.

Control Costs While Expanding Business expansion presents many positive opportunities to the ever growing financial companies, including increased assets and broader geographic reach to new customers. The question thus arises as to how the companies can grow without sacrificing their profitability? The company at hand must offer the same level of superior service that its customers have come to expect—while minimizing operational costs as the company begins to serve an augmented and growing customer base. For this the company has to enable the agents, representatives and brokers to identify and spend the right amount on each opportunity. A high-value, low-risk customer, who carries policies over a long period and makes relatively low claims, is an ideal subject for marketing and sales efforts targeted at extending his or her portfolio. The company can also use the most cost-effective channels without sacrificing a high level of customer service. Call center, agents, email, phone and self-service portals—these are some of the channels that can be used. Here again using customer analysis and behavior prediction, call center representatives, agents and brokers can target marketing and sales efforts through different channels depending on the target audience in question. New and advanced email response, Web chat and self-service portal tools are drawing more and more customers to the Web each day, enabling a consistently high level of customer service while "pulling" customers to a communications medium which is much more cost-efficient than the phone.. Today financial companies certainly face a daunting challenge in maintaining and increasing their competitive edge. But by focusing on three key imperatives insurance companies can turn challenges into strategic competitive advantage and enhance their long-term viability and profitability.

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SEGMENTING AND TARGETING
Segmentation and targeting aids Customer Relationship Management in the financial sector. Financial product marketers need to manage their product portfolio in response to the changing environment and consumer needs, in addition to managing customer relationships effectively for achieving long-term profitability. For a financial product, the product strategy is greatly influenced by customers, competitors, technology, and government & legislation. Depending on these factors, the product mix strategy could be product mix expansion, product mix contraction, and product modification. Branding in financial services is done more at the corporate level than at the product level. Branding should start with a clear strategy for targeting and positioning. The brand image should be consistent with the marketing strategy. Advertising can be successful in building the brand only if the financial product caters to the requirements of the consumer and the entire service experience is consistent with the brand image that is communicated. CUSTOMER RELATIONSHIP MANAGEMENT is a tool for marketers to acquire customers, retain them, and maintain long-term profitable relationships with them. It uses information technology to achieve these objectives. Competitive pressures have led marketers to realize the necessity of customer retention to survive in a deregulated economy. CRM has enabled the shift in approach from being product-centric to being customer-centric. In addition to maximizing customer value, CRM helps marketers to cross-sell products, achieve long-term profitability, and build the brand. CRM becomes all the more important in the financial sector as the customers trust their hard earned money with the companies. In order to serve their customers well, the marketer needs to identify the target customers, differentiate them into groups, interact with each customer group, and provide customized products and solutions in a cost-effective manner. All customers are not equal, recognizing, rewarding best customers disproportionately and understanding each customer becomes particularly important. The same customers‘ reaction to a cellular company operator may be quite different as compared to an insurance company operator. Besides for the same product or the service not all customers can be treated alike and CRM needs to differentiate between a high value customer and a low value customer. For this proper segmentation becomes important and this can be done on the basis of: 1. 2. 3. 4. Tastes, preferences and personalities Lifestyle and age Cultural background and education Psychological characteristics

The life insurance business differs from the non-life insurance business on several aspects that range from product nature, risk covers provided, and the agent‘s role. Life insurance products cater to the needs of the individual and groups of individuals. Generally, insurance products are categorized broadly under term life, whole life, endowment, money back, annuities and pensions, and unit linked schemes. All these different schemes were brought into the market after proper
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segmentation of the market on the basis of different age groups, income groups and risk factors. The various schemes are targeted at these different segments. For example a company cannot suggest a child plan to a person who is not even married. For him/her a term plan or whole life insurance can be suggested. The cultural background of a person helps in deciding as to whether he/she is interested in traditional plans or unit linked plans. The income of a person becomes the deciding factor for suggesting high premium or low premium plans. Segmentation helps CRM to deal with different customers in different ways. If we come to mutual funds, we can see that they have come of age to cater to the needs of investors. Mutual funds can be classified into open-ended funds, close-ended funds, and interval funds, based on the fund structure. Based on the investment objectives, they are divided into growth funds, income funds, balanced funds, and money-market funds. Based on the specific purpose of use, mutual funds are classified into tax savings schemes, index funds, and themebased funds (including industry-specific or sectoral funds). Many fund marketers have come out with innovative and customer friendly products that aim at satisfying the investors‘ financial goals. Systematic Investment Plan (SIP) is an innovation in payment option for mutual fund investors. It is designed for those who are interested in gradually accumulating wealth in a disciplined manner over a long term. Mutual funds are priced based on their net asset value, which the fund houses declare on a daily basis. Investors can sell their units back to the fund at the prevailing NAV. Here again different clients need to be suggested different types of funds. A person who is ready to take risks can be given a total growth fund, a person who wants consistent returns can be suggested a debt fund and one who can take moderate risks can be given a balanced fund. Similarly the General Manager of a company and a common client need to be treated differently. A proper CRM would mainly target those customers who have the potential to become long term clients. The organizations that serve the needs of all the stages of customer life cycle experience huge profits. An insurance company can sell a life policy to a person, once he/she gets married and has kids a child plan can be sold to him/her and that can be followed by an annuity or retirement scheme. Positioning in financial products marketing differs from that of other products and services in that organizational positioning is given more importance than product level positioning. Customer service is an important factor that differentiates the product offerings in the service industry. Service quality can be improved along the dimensions of tangibles, reliability, responsiveness, assurance, and empathy. Financial product marketers need to imbibe in them the philosophy of providing quality customer service in order to increase their profitability. Good customer service and proper handling of customer complaints pave the way for building lasting relationships. It can be seen that segmentation, targeting and positioning helps in customer relationship management. Once all the segments are catered it becomes the job of CRM to grade customers from very satisfied to very disappointed .This should help the organization in improving its customer satisfaction levels. As the satisfaction level for each customer improves so shall the customer retention with the organization.
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MY PROGRESS AT BSDL
The 45 days of my training period was a whole new learning experience for me. When I had joined BSDL, I did not have much idea about the financial sector but today I can say that I have a fair knowledge about it. On the very first day, after a lot of discussion, my corporate guide assigned me the topic “Customer Relationship Management” as this topic is applicable for all industries. To understand the needs of a customer, their behaviour and provide them good service is a tough job. Building and maintaining good relations with the customers is an even tougher job so CRM was an apt topic for me. The first 15 days were spent in knowing about the various tools of investment like insurance, mutual funds, SIPs, equities, gold and commodity trading. I was also sent for market surveys so that I could get an idea about what people think of the various investment options. It was very interesting to know their preference and areas of interest. Marketing Activities The next 15 days, I was told to go out into the market, create awareness among the people about the company‘s products and generate some business for the company. However, there was never any pressure from the management. They just wanted me to have a first-hand experience of the marketing activities. For this, I first segmented the market into three groups- businessmen, government service holders and private service holders. This helped me in targeting the right products to the right people. Apart from this, I also made phone calls from the office itself to the customers. This gave me an idea about how CRM works in an organization. I asked them whether they were receiving their statements on time, suggested new funds to them and told them about other offers of the company. This helped me in enhancing the relations between the company and its customers. Survey The last 15 days were utilized in preparing a questionnaire for the survey and conducting it in the town of Ranchi. The earlier segmentation helped me here too. I met business class people like that of BIG SHOP, ANAND VATIKA, PRILKNIT and so on. I visited government offices like JHARKHAND CHAMBER OF COMMERCE ASSOCIATION, JHARKHAND STATE TOURISM DEPARTMENT, FOOD CORPORATION OF INDIA and SAIL. The people whom I had visited earlier also proved to be of great help and extended their full cooperation. The survey helped me in gauging the behaviour and preferences of the people. I analyzed the data that I had collected through the survey and prepare a report on it. Finally I submitted the report on the said topic to my corporate guide. The completion of the project has certainly enhanced my knowledge and I believe that the practical knowledge that I have gained here will help me in the future.
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Observation And Learning

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CUSTOMER RELATIONSHIP MANAGEMENT AT BIRLA SUN LIFE DISTRIBUTION LIMITED
One of the ongoing challenges successful businesses face is in optimizing customer satisfaction and developing Customer Relationship Management. So many companies "jump on the bandwagon" of improving customer service in order to impact customer retention levels. In order to maintain a successful business, the business must understand and maintain a positive relationship with its customers. There is a plethora of organizations that provide financial services. The various companies have to fight it out to stay ahead in the rat race. Today all the big corporate houses have a financial service wing attached to them. We have Reliance group, Tata group, Sahara group, Birla group, to name a few, who are the key players in the private sector. Customer acquisition and customer retention are two important functions of CRM. There are many reasons a customer or client may leave an organization, but the ones we hear most often are:
   

They felt that the pricing was too high or unfair. They had an unresolved complaint. They took a competitors offer. They left because they felt that the company didn't care.

In order to avoid such problems BSDL has adopted a number of ways in which it can provide quality service to their customers. It is a well known fact that in order to serve a large customer base a good IT solution is required which can maintain the customer database. The customers can be provided proper service only when their information is available at a click of the mouse.Thus, in order to successfully collect data, manage call centers, analyze data, and make changes, businesses need CRM software. There are many CRM vendors in the world. The various CRM solutions used by BSDL are: 1. 2. 3. 4. CALL CONTROL in order to maintain the database. LMS for managing the leads. ICRA for insurance. FUND MANAGER for SIPs and mutual funds.

ICRA and FUND MANAGER together form the CRM software called CITRIX.

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CRM ACTIVITIES AT BIRLA SUN LIFE
The CRM software only helps in maintaining a customer database but the actual onus of maintaining good relations with the customers lies on the shoulders of the employees. The attitude of the company towards its customers decides whether they would continue to avail the services of a company or take the competitor‘s offer. Thus companies adopt a lot of activities in order to provide good service to their customers so as to increase customer loyalty. Birla Sun Life has a huge customer base and the company believes in providing quality service to its customers. It has the responsibility of establishing and building client relations, an in-depth understanding of consumer behaviour, assess and respond to client needs and maintain and improve client relationship. For this the company practices a number of activities towards attaining this objective. These include: 1. TELE CALLINGThis is the most popular way of interacting with the customers. The employees speak directly to the customers, solve their problems and take their requests. The company also intimates the customers with the new policies and funds and suggests them the funds that would yield the highest returns for them. A good thing about BSDL is that it not only suggests the funds of its own company but also of other leading companies. It is because of this reason that people tend to avail its services. Tele calling also helps the company in knowing its customers better. Tele calling has its own advantages and disadvantages. The advantage lies in the fact that it helps the customers in getting first hand information about the products. The disadvantage is that sometimes the client may be busy in some other work and thus may not entertain the caller. Worst still they may get irritated. The employees then have to arrange for some other time to speak to them.

2. DIRECT VISITAn important job of CRM is to support the sales team with all the information about the preferences of the customers. When the sales team visits the clients they know about their previous investments so that they do not recommend them the same things as it wastes a lot of time. Moreover their background knowledge helps the sales force to suggest the right policies and schemes. The advantage of direct visiting is that the company can have face to face interaction with the customers. This helps the company in judging the behaviour of the clients better. Direct visit is a better option when it comes to customer acquisition. Sometimes it becomes very difficult to get free time from the customers. This is the disadvantage of direct visits.

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3. DIRECT CALLS FROM THE HEAD OFFICEBSDL sends all the information of its customers to the head office and the clients get calls from the head office too. This shows that the customers of the company are all connected as the information of all customers from all over India are well maintained not only by the regional offices but also the head office. When a customer gets a call from the head office, he/she can feel his/her value for the company. The client can feel his/her importance and it also shows that the organization cares for its customers. This has helped the company in building long term relationships with its customers as it has increased the trust of the clients in the company. Thus we see that this activity has been quite advantageous for the company.

4. FUND UPDATIONThe company frequently updates the funds of its customers by calling them up. The clients are informed about the NAV of their funds and also about the new funds in the market. The clients are suggested the funds that would yield them the highest returns and which would be profitable keeping in view the market conditions. The advantage of fund updation is that it helps the clients in knowing the performance of the funds. People invest in mutual funds so that the fund managers take care of their funds but when the company calls them to inform about the funds, it makes the company more transparent. Thus the satisfaction levels of the customers increases.

5. NFOsCustomer relations are improved as the company gives added services to them. BSDL offers the NFOs of all the companies and calls the clients in order to inform them about it. During my training period at BSDL, Reliance had launched its Infrastructure fund and I too called the customers to inform them about the fund. When the customers get the funds of all the companies at the same place they would like to come there instead of going to other companies. This has acted as a plus point for BSDL as it has increased the customer base of the company. This is the main advantage of providing NFOs.

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6. CORPORATE PRESENTATIONSIn order to increase its customer base and create awareness about mutual funds and equities among people the organization makes corporate presentations. Recently the company made presentations at SAIL and it has helped in customer acquisition. This helped in building customer relations. Corporate presentations help in acquiring new customers. Not many people are aware about mutual funds and it is still in its nascent stages. Since people do not know about these they are skeptical about investing it them. When a company makes such presentations, the potential customers may become actual customers. Sometimes the people working in the organization are not very interested in attending such presentations. Creating interest becomes a difficult task for the company.

7. SENDING GREETINGS ON SPECIAL OCCASIONSThe company sends greeting cards to its customers on special occasions like their birthdays and anniversaries. Not all companies are indulged in such activities as it involves some costs but it gives high returns in the long run. The basic advantage of this activity is that it makes the clients feel that they are important for the company. The financial relation gets converted into an emotional relation and the customers feel that the company cares for them. The same thing can also act as a disadvantage sometimes if the customers feel that the company is just trying to oil them so that they can sell new policies to them.

8. CLIENT MEETINGS AT THE OFFICEThe company also arranges for client meetings at the office so that they can intimate them with the new products. The employees make presentations on such occasions so that any doubts arising in the minds of the clients can be resolved. The clients get an opportunity to meet each other and discuss the various products among themselves. The views of the clients can be taken into account and the shortcomings of the plans pointed out by them can be worked upon. It makes the customers feel as a part of the organization. This is one of the greatest advantages. However, it is not always possible to get all the customers under one roof at the same time and conducting such sessions every time may not be cost effective. 9. GROUP ACTIVITYThe company also organizes group activities within the Aditya Birla group. The Aditya Birla group has many subsidiaries like IDEA CELLULAR, ULTRATECH CEMENTS and such
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others but not all of them are a part of Birla Sun Life. In order to make them a part of the organization such events are conducted. Such activities are advantageous as they help in building relations within the group and these can help in bringing them within the folds of this financial wing. This can help in building up the customer base of the company.

10. WELCOME CALLSOnce the customers avail the services of the company, the company makes welcome calls to them and this is done for each and every customer whether they take the company‘s products or the funds of some other company. These calls are also made to request them to come and meet them in the office whenever they have any questions regarding the various policies and schemes, be it insurance, mutual funds, equities, gold broking and such others. Such welcome calls help in making a great impact on the customers and it poses a good image of the company. Such initiatives by the company also help in portraying customer value to the customers. As is said that ―The first impression is the last impression‖, such calls help in creating that impression.

11. FREE OF COST PORTFOLIO DESIGNINGIn BSDL, there is the option of getting one‘s portfolio designed and that too free of cost. Portfolio designing mainly means how much an investor should invest in the various investment tools. The company follows certain formulas for this purpose. A well designed portfolio helps the customers in earning good returns. The main advantage of this service is that it is free of cost so many people are attracted towards it. Such a service is not given by all companies so it acts as an added advantage for the organization. An obstacle in the path of this service is that many people would not want others to decide where they should put their money maybe because of lack of trust. Thus, winning the trust of people is an important task here.

12. MAILS AND MESSAGESThe company sends mails to its customers in order to remind them if their premium is due or inform them about the performance of their funds. The information about the new funds is also given through mails. Gold broking is a fairly new concept and the customers can be made aware of it through mails. Similarly messages are also sent to the customers for the same purposes as mails.
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Mails are generally more suitable for the busy people for example the top level officers in a company. Calling them in their busy schedule would be a bad idea and it can tarnish the image of the company. Messages are even better as everyone carries a mobile nowadays and they can check their messages any time they want. However checking mails is time taking and everyone may not have an email id.

13. CALL BACK SERVICEThe company has a service where a person can post his/her name, phone number, call time, preferred date of call and preferred time of call on the company‘s website. The company then makes the call to that customer and solves his/her queries. This service helps both in customer acquisition and customer retention as they feel that the company wants to help them. Investments are one of the most important decisions of any person so people like to have its overall idea. The main advantage of this system is that the customers would not have to come all the way to the office in order to know about the products and since they themselves want to know about the offers, there is no question of getting irritated when the company calls back.

14. DIVERSIFIED INVESTMENT OPTIONBSDL deals in all the investment tools and so there is the option of diversified investment. A customer having a life insurance policy can be suggested certain funds and vice-versa. Now the company has its own broking house (APPOLLO SINDHOORI) so it can also suggest equity broking. This helps in customer relationship management as the customer gets many options at the same place. The company can gauge the behaviour of the client and suggest him/her products from its kitty. This mainly helps in customer retention.

The above activities are religiously practiced at Birla Sun Life Distribution Limited. Such activities have helped the company to improve its customer base and enhance its relationships with the customers.

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The TELEPHONE is one of the most important tools that help in building relationships with the customers. A positive relationship with the customer helps in bringing the company and customers closer to each other. Customer perception is an important component of our relationship with our customers. Given that 90% plus of our orders at some point involve the phone, how we handle the telephone is essential to creating a perception for our customer that aligns with a company‘s mission of service. At BSDL I learnt great ways of handling the phone. Here are a few of them. 1. The greeting is ―Good Morning/Good Afternoon, this is Joshua with (the company name). How may I help you? 2. Always ask and receive a response from people before you put them on hold, ―Would you please hold ?‖ then be sure they are not on hold very long otherwise offer to call them back. 3. Remember to smile on the phone. Slow down and speak plainly and clearly. Smiling stretches your vocal cords, and gives a more upbeat presentation to the customer. Slowing down ensures that the customers‘ perception is of an organized systematic company that can handle their project. 4. If you transfer a call and know who is calling, tell the name of the caller to your co-worker so they can greet the person by their name. 5. When you make a call to the customer make sure that you ask him whether he/she is busy or not. If not request him/her to spare two minutes and if yes then ask for some other time. 6. Remember to always ―thank‖ the customer. Thank them for calling. Thank them for their business. Thank them for cooperation and understanding. Thank them for listening to you. 7. If we have to contact a customer with bad news of any kind realize that your tone of voice and approach to it set the tone. We do not want to be nonchalant as if it is not big deal. Nor do we want to act like a terrible calamity occurred. Here are keys to contacting customers with bad news: • Prepare rehearse and organize what you are going to communicate to them and how you are going to communicate it to them. • Be absolutely certain that you have options to give the customer in these situations. This allows them to be more in control rather than a victim. What are options? What are solutions? Do not call them with the problem unless you are also providing solutions to them. • Learn what you could have done to prevent this problem from occurring and do so next time. Again, the customer is calling us to take on their problems and to solve their problems. They really do not want (nor do they care) to know about our problems.

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METHODOLOGY
DATA COLLECTION:
Two types of data collection methods were used in the project. PRIMARY DATA SECONDARY DATA For my project, I collected primary data by observing the company staff directly dealing with the customers, approaching customers directly in the field and speaking to them over the telephone. I also prepared a questionnaire in order to gauge customer perception about the financial sector and it was also feasible from the point of view of my subject and survey purpose. Secondary data collection method was used by referring to various websites, magazines and newspapers for collecting information regarding the project. I used both descriptive and exploratory methods in conducting the survey. Descriptive research design was adopted where I prepared a questionnaire and distributed it among the people of Ranchi to gauge the investment scenario of individuals in Ranchi. I also used Exploratory research design where I personally met people in order to understand why they prefer LIC over other companies and what are their views on mutual funds and equities.

SAMPLE SIZE – 100 SAMPLING METHOD – Random Sampling Method DATA PRESENTATION – The collected data is presented using bar diagrams and pie
charts.

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SURVEY FINDINGS AND RECOMMENDATIONS

54

1) What is your income level?

100 80 60 40 20 0 Below 1.50 1.50 2.50 2.50 5.00 Above 5.00 28 39 25 8

2) What is your annual investment level as the percentage of your total income?
70 60 50 40 30 20 10 0 below 20% 20% - 30% 30% - 50% above 50% 10 0 32 58

3) Which type of investment do you prefer the most?
50 45 40 35 30 25 20 15 10 5 0 43 38

14 5

Regular High return Tax shield Retirement income scheme

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4) What type of return do you expect?

100 80 60 40 20 0

60 19 21 0

5) What is your investment horizon?
100 90 80 70 60 50 40 30 20 10 0

45 22 4 Upto 1 yr. 19 10

1-5 yrs. 5-10 yrs. 10-15 yrs Above 15 yrs

6) What is your source of information while investing?

Print media 17.50% 37.50% 22.50% 22.50% Electronic media Internet Social circle

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7) Are you satisfied with your current portfolio?

60 50 40 35 30 20 10 0 Highly Satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied 10 6 0 Highly Dissatisfied

49

8) Has the recent global recession affected your investment decision?
100 90 80 70 60 50 40 30 20 10 0 Yes No 52

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9.On an average, the percentage of different investment tools in the portfolio of individuals survey

1.40% 14.60% 32.40%

4.80% 4.40% 1.40% 22%

Mutual Fund Real Estate Post Office Schemes Debt Equities Gold Bank Deposit Insurance

16.40%

2.60%

PPF

10.The degree of importance of different factors considered by investors

Total marks allocated
120 100 80 60 40 20 0

Total marks allocated

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FINDINGS
On interacting with the people of Ranchi it was found that most of them prefer LIC when it comes to insurance policies. The reason given by them is that it is the oldest organization so it has created a niche for itself in the minds of the common people. Moreover it is a government organization so the security factor is strong as the government is accountable for their money. There are still others who just follow suit of their forefathers. I also found that not many people have idea about mutual funds, SIPs, gold broking and commodity trading. People having knowledge about equities tend to invest more on it. On asking them about the risk involved they said that there can be no gain without risk. From the survey When it comes to investments it is seen that people give more importance to the return factor over other things like risk, company history, future perspective and service. Most people prefer schemes that would give high returns followed closely by regular income schemes. The recent market slowdown has affected the investment decisions of people specially those who played in the equity market. Despite the economic turmoil it was found that people are still interested in investing which shows the growth potential of the financial sector. It was found that people get information about the various schemes from their social circle whereas the print media does not fare very well in this aspect. The investment tool where Ranchi has invested the most is insurance mainly because everybody wants a secure future for their family.

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RECOMMENDATIONS
The company has launched a Gold Dhamaka scheme where people can purchase 100gm or more gold from the company. However the demerit of the scheme is that people have to pay Rs.15000 initially which is huge. The company should thus reduce the initial investment. The organization should focus more on educating people on investment tools like mutual funds, SIPs as they know only about its downside but not about its benefits. People do not have a lot of faith on private companies when it comes to insurance so they should create awareness among people and instill faith in them for the company‘s insurance policies. For this presentations can be made in other organizations, clubs etc. where any doubt in the minds of people can be solved then and there. Regular customers or clients who make huge investments can be offered some kind of incentive like gifts. Create a customer focus group maybe of about 15 to 20 people who can give feedbacks to the company on the various products. They can also place their views regarding customer service and give suggestions if any kind of improvement is required. Make it easier for the customers to contact you by giving them alternative numbers and IDs. This way they will stay connected. Provide a toll free number to people so that they do not feel a pinch in their pockets when they call the company. Organize special events for the customers like maybe a seminar or discussion and provide them good refreshments. The company should invest more on advertising in the print media like newspapers and magazines. They can also distribute pamphlets of the best schemes so that people come to know about it on a first hand basis and not only from friends because friends will only tell about the schemes that they have. Finally, the company should provide added incentives to the employees for customer service because if the employees are happy, the customers will never have any complaint.

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CONCLUSION
The success of any marketing activity cannot be measured by the short run cost benefit. Marketing activities should be aimed at yielding long run profits for the company. For this the organisations take various measures so that both existing as well as potential customers have the right information about the company‘s products. Birla Sun Life Distribution Limited pays a lot of attention to its customers but there are areas where improvement would be welcome. Sometimes companies spend exorbitant amounts for their marketing activities but the returns are not satisfactory. This is because the dissemination of information is not properly done for which proper segmentation of the market becomes necessary. The company should first educate the people about its products, understand their needs and then suggest them various options. For any marketing activity to be successful, a lot of onus lies on customer service. Dealing with customers is one of the most delicate and complex tasks that an organisation has to face. Most organizations have an extremely faulty customer centered system. Several millions are lost yearly as corporations scramble to make profits, beat competitors, and stay ahead in the rat race but they are not open to customer suggestions and more often than not they do not provide the customer with a proper avenue to vent his ideas. This often leads to unhappy customers and eventually their loss. Birla Sun Life Distribution Limited has adopted several measures in order to keep their customers happy and satisfied but in the face of such tough competition by other investment companies, it would be beneficial if the company offers something extra. The Government of India has removed entry loads from mutual funds, the brokerage charges are being reduced which is directly affecting the business of the company. Thus, it has to come up with ideas so that both the customers as well as the employees are happy.

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Bibliography
BOOKS: Book on Mutual Fund Book on Indian Capital Market MAGAZINES: Outlook Money Investime WEBSITE www.birlasunlife.com www.adityabirla.com www.icmrindia.org www.crm2day.com www.indiabullion.com www.investinginbonds.com www.tradechakra.com www.investopedia.com May, June July edition BSDL Publication AMFI National Stock Exchange

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Appendices

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QUESTIONNAIRE INVESTMENT SCENARIO IN RANCHI TOWN (OF INDIVIDUALS)
Name: _____________________________________________ Occupation: _________________________________ Phone No. ______________________________ Age: __________________

Organization: _________________________

Email-Id: __________________________________

1. What is your education level?
(A). Under Graduate [ (C). Post Graduate [ ] ] (B). Graduate [ ] ]

(D).Any other professional degree [

2. What is your income level? (in lakhs)
(A). Below 1.50 [ (C). 2.50 – 5.00 [ ] ] (B). 1.50 – 2.50 [ (D). Above 5.00 [ ] ]

3. What is your annual investment level as the percentage of your total income?
(A). Below 20% [ (C). 30 -50% [ ] ] (B). 20 -30% [ ] ]

(D). Above 50% [

4. Are you a regular investor?
Yes [ ] No [ ]

5. What is your source of information while investing?
(A). Print media [ (D). Social circle [ ] ] (B). Electronic media [ ] (C). Internet [ ]

(E). Any other ______________________________

6. Your investment portfolio contains (in %)
(A). Real estate [ (D). Debt [ ] ] ] (B). Post office schemes [ (E). Equities [ (H). Insurance [ ] ] ] (C). Mutual funds [ (F). Gold [ (I) PPF [ ] ] ]

(G). Bank deposits [

7. Prioritize the factors you consider while investing (maximum of 5 to the most important and minimum of 1 to the least important)
(A). Risk factor [ ] ] (B). Return factor [ ] (E). Service [ (C). Company‘s history [ ] ]

(D). Future perspective[

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8. Which type of investment do you prefer the most?
(A). Regular income [ (C). Tax shield [ ] ] (B). High return (D). Retirement scheme [ [ ] ]

9. What type of return do you expect?
(A). Monthly [ (C). Semi annual ] [ ] (B). Quarterly [ (D). Annual [ ] ]

10. What is your investment horizon?
(A). up to 1 year [ (D) 10 to 15 years [ ] ] (B). 1 to 5 years [ ] (C). 5 to 10 years [ ] ]

(E). Above 15 years [

11. What are your near future liabilities?
(A). Child marriage [ ] ] (B). Child education [ ]

(C). Repayment of loans [

(D). Any other_____________________________

12. Are you satisfied with your current portfolio?
(A). Highly satisfied [ ] ] (B). Satisfied [ (D). Dissatisfied [ ] ]

(C). Neither satisfied nor dissatisfied [ (E). Highly dissatisfied [ ]

13. While considering an investment which factor/s acts as an obstacle?
(A). Lack of knowledge [ (C). Lack of time [ ] ] (B). Lack of money [ (D). All of the above [ ] ]

14. Has the recent global recession affected your investment decision?
(A). Yes [ (B). No [ ] ], (how) ______________________________________________________________

15. Are you considering any new investment in near future?
(A). Yes [ (B). No [ ] ], (why)_____________________________________________________

Signature

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