COMPETITVE ANALYSIS OF INVESTMENT OPPORTUNITIES IN RELIANCE MONEY

ABSTRACT

Abstract

This report does a Comparative Analysis of different Financial Products of the Reliance Money company with its nearest competitor and develops a Hypothesis for the same to check if there is any advantage of Investment Avenue in Reliance Money.

1.       Equity: In Equity Trading, the nearest competitor of Reliance Money is ICICI. The methodology employed for comparison is Factorial Design (Two-way ANOVA) under Statistical Hypothesis.

 

 Here, the Null Hypothesis (H01) is accepted which states that Profits generated using Tips & Techniques of Reliance Money in equity market are equal to the profits generated using Tips & Techniques of ICICI Securities. It signifies an excellent performance of the company in this competitive market.

 

2.       Mutual Funds: In Mutual Funds, the nearest competitor of Reliance is ICICI Prudential. The methodology employed for comparison is Factorial Design (Two-way ANOVA) under Statistical Hypothesis.

 

Here the Null Hypothesis (H02) is accepted which states that Returns from investment in Mutual Funds of Reliance Securities is greater than the returns from investment in Mutual Funds of ICICI Prudential in fluctuating market scenario. 

 

Also using Multiple Regression, we find out that Sharpe ratio is the most important parameter for observing Expected Returns. Higher the Sharpe Ratio Better would be the expected returns.

Thus, for sure Reliance Money enjoys a competitive advantage over its rivals as it provides cheap & superior services to its investors in addition to customer satisfaction and better returns.

 

3.       Insurance: In Insurance schemes, the nearest competitors of Reliance are TATA and LIC. The methodology employed for comparison is Chi-Square Test of Independence under Statistical Hypothesis.

 

Here, the Null Hypothesis (H01) is accepted which states that Investment tendency of customers in Insurance is independent of company. A Low value of Contingency Coefficient (C=0.0000575) which measures the strength of Association further verifies the Independence.

When Product Differentiation is taken into account, the result is again the same.

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