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BY AJAY SINGH RATTHORE (3003) MBA II JODHPUR INSTITUE OF MANAGEMENT JODHPUR.
TABLE OF CONTENTS
Acknowledgement…………………………………………………. Abstract……………………………………………………………. CHAPTER I………………………………………………………. Objective Limitation Methodology CHAPTER II……………………………………………………… Industry profile History and organization of Mutual Fund in India Mutual Fund companies in India Recent trend in Mutual Fund Industry
CHAPTER III…………………………………………………….. Introduction about Mutual Funds Mutual fund : why? Mutual fund :what is it ? Mutual fund :what is it made of? Different type of MF
CHAPTER IV……………………………………………………. Company profile
Introduction Product and service of reliance MF Why Reliance Mutual Fund ? CHAPTER V…………………………………………………….. SWOT Analysis CHAPTER VI……………………………………………………. Analysis and interpretation of Mutual of data CHAPTER VI………………………………………………… .. Findings CHAPTER VIII………………………………………………… Recommendation CHAPTER IX………………………………………………….. Conclusion CHAPTER X…………………………………………. ………. Objectives Limitation CHAPTER XI…………………………………………………….. Questionnaire Bibliography…………………………………………………….
I am grateful to all those who have helped me directly or indirectly in company this project . I firmly believe that there is always scope for improvement and accordingly. I shall took forward to received suggestions. First of all I would like to thank God for his grace .I am further thankful to Reliance Mutual Fund ,Jodhpur .which give me chance to held my project study upon of it . I exuberantly thankful to Mr. Pawan Joshi (Relationship
manager) I further want to thank to Mr. Arvind Kuri who guide me and help taking right direction in field work. I further welcome inspiration and suggestion to make it best. I sincerely believe that the road of improvement is never ending. Hence I shall forward to end gratefully acknowledge all suggestions received. I am highly grateful to Dr. Abha Purohit faculty of JIM, Jodhpur for acting as a Guiding star for me. Who helped me in their own way to complete this interim report. my sincere apologies is who helped me in a variety of wage and Whose name could not be individually acknowledged.
AJAY SINGH RATHORE (3003)
Probably nothing can define the spirit of being ‘mutual’ better than this verse. And who else to understand it better than the mutual fund industry. It seems the mutual fund industry in India is slowly but surely beginning to recognize this aspect for the better. Today, there is greater emphasis on the role of the industry, the regulator. Securities and Exchange board of India (SEBI) and industry body, Association of Mutual Funds in India (AMFI) on creating awareness among investors and improving investor services. In fact, the efforts of both the regulator as well as AMFI are laudable for promoting the cause of investor education religiously. The ‘one product caters to all needs’ approach has given way to offering products which suite the specific needs of investors ala product innovation. There is also increased emphasis on convenience in terms of comfortable transaction services to investors by using delivery or distribution platforms like the Internet, ATMs, Corporate brokers, etc. Infect, distribution innovation has come to play a key role in the growth of the industry. Industry players are using different distribution channels to increase their market penetration. However, a significant change that is being witnessed now is the swift response on part of the regulator to safeguard investors’ interests. Thanks to the collective efforts of SEBI and AMFI, and also the industry players, the domestic mutual fund industry has been untouched by the depression of late trading, inside trading etc., which affected the US Mutual Fund industry in recent times. However, that is not to say that the Indian Mutual Fund Industry is completely problem-free. Issues such as low penetration in both semi
urban as well rural areas (mutual funds have so far been largely and urban affair that too in big cities), poor investor awareness and exploitation of this fact by industry players, as demonstrated by the mutual fund IPO commotion
and excessive focus on corporate and other big pocket investors at the expense of retail investors are some of the issues that industry needs to address. With the increase in domestic saving s and improvement in deployment of investment through markets, the need and scope for mutual fund operation has increased tremendously. Mutual funds are not only best suited for the purpose but also are capable of meeting this challenge effectively. Professionals who manage mutual funds are considered to have a better knowledge of market behavior. Another important reason is that the dividends and capital gains are reinvested automatically in mutual funds and, hence, are not frittered away. Mutual funds also create awareness among the urban and rural middle-class about the benefits of investments in capital markets through profitable and safe avenues, and are able to gather a large amount of the surplus funds available with this section. Within short span of time mutual fund operation has become an integral part of the Indian financial scene and is balanced for rapid growth in the near future. The mutual fund industry has been remarkably flexible over the last decade in spite of varying economic conditions, capital market scams, and increasing competition. Today, numerous schemes, tailored to meet the diversified needs of savers, are being offered by many institutions. In this project an attempt has been made to evaluate the awareness and perception of mutual fund on different parameter
Limitations Methodology OBJECTIVES
The main aim of undertaking this study is to accomplish the following objective: • Conducting a market survey and understanding the customer perception. • Analyzing the market survey and thereby finding out the investment pattern of the customer. • Proper understanding and evaluation of mutual funds as an investment option • Analysis customer awareness about Mutual fund. • Proper understanding and analysis of the perspective investor about this financial product .
Though the present study aimed to achieve the abovementioned objectives in full earnest and accuracy, it was in a weak position due to certain limitations. Some of the limitations of this study may be summarized as follows : • Getting accurate responses from the respondents due to their inherent problems was difficult. They were partial, and refused to cooperate. • Very few people have knowledge about Mutual funds and the other products of the Mutual Funds .
Locating the target respondents was very time consuming. Sample size was limited due to the limited period of days allocated for the survey. The selection of respondents to cover the various strata of the society was tedious and time consuming.
The objective of the present study can be accomplished by conducting a systematic market survey. Market Research is a systematic design, collection, analysis and reporting of data and finding that are relevant to different market situation facing by the company. The marketing research process that will be adopted in the present study consist of the following stages: 1. Defining the problem and research objective: The research objective state that what information is needed to solve the problem. Here the objective of other research is awareness and perception of Mutual fund as an Investment option and what are the benefits that the investor will get by investing in Mutual funds. 2. Developing research plan: Once the problem is defined, the next step is to prepare a plan for getting the information needed for the research. The present study will adopt exploratory approach where in there is a need to gather a large amount of information before making a conclusion if required. The descriptive and casual approaches may also be used. 3. Collection and Sources of Data: To collect the data, relevant information is necessary as regards to the project; as a result data was collected by using two ways: • • Primary Data Secondary Data. Primary Data: In this the information is being possessed with first hand information, which is new and fresh. The tools used by us for the primary data are:
• Questionnaire • Face-to-Face Interview • Observation Secondary data: The information that is received with the help of Journals, Magazines, Financial reports or which is already present with the company. • References used from management books • Gathered information through World Wide Web (www). • Support and knowledge provided by Faculty and Company guide. 4. Sampling Plan:
Sampling unit: The customers will be stratified and segmented according to their age, income, cultural background, gender, education, etc(Demography).
Sampling size: A survey was conducted for one hundred respondents.
5. Analyze the collected information: This involves converting raw material in to useful information. It involves tabulation of data and using statically measures on them for developing frequency distribution and calculating the averages and dispersions. 6. Report research findings: This phase will mark the culmination of the marketing research efforts. The report with the research finding is a formal written document.
HISTORY AND ORGANIZATION OF MUTUAL FUNDS IN INDIA
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can be broadly divided into four distinct phases First Phase – 1964-87: Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management. Second Phase – 1987-1993 (Entry of Public Sector Funds): 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores. Third Phase – 1993-2003 (Entry of Private Sector Funds):
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and
governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds. Fourth Phase – since February 2003: In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.
The graph indicates the growth of assets over the years.
Graph 1: The graph showing Growth in assets under management through
RECENT TRENDS IN MUTUAL FUND INDUSTRY
The most important trend in the mutual fund industry is the aggressive expansion of the foreign owned mutual fund companies and the decline of the companies floated by nationalized banks and smaller private sector players. Many nationalized banks got into the mutual fund business in the early nineties and got off to a good start due to the stock market boom
prevailing then. These banks did not really understand the mutual fund business and they just viewed it as another kind of banking activity. Few hired specialized staff and generally chose to transfer staff from the parent organizations. The performance of most of the schemes floated by these funds was not good. Some schemes had offered guaranteed returns and their parent organizations had to safekeeping out these AMCs by paying large amounts of money as the difference between the guaranteed and actual returns. The service levels were also very bad. Most of these AMCs have not been able to retain staff, float new schemes etc. and it is doubtful whether, barring a few exceptions, they have serious plans of continuing the activity in a major way.
The experience of some of the AMCs floated by private sector Indian companies was also very similar. They quickly realized that the AMC business is a business, which makes money in the long term and requires deep-pocketed support in the intermediate years. Some have sold out to foreign owned companies, some have merged with others and there is general restructuring going on The foreign owned companies have deep pockets and have come in here with the expectation of a long pull. They can be credited with introducing many new practices such as new product innovation, sharp improvement in service standards and disclosure, usage of technology, broker education and support etc. In fact, they have forced the industry to upgrade itself and service levels of organizations like UTI have improved dramatically in the last few years in response to the competition provided by these.
MUTUAL FUND COMPANIES IN INDIA
List of Some of the AMCs Operating in India Name of the AMC Alliance Capital Asset Management (I) Private Limited Birla Sun Life Asset Management Company Limited Bank of Baroda Asset Management Company Limited Bank of India Asset Management Company Limited Canbank Investment Management Services Limited Cholamandalam Cazenove Asset Management Company Limited Dundee Asset Management Company Limited DSP Merrill Lynch Asset Management Company Limited Escorts Asset Management Limited First India Asset Management Limited GIC Asset Management Company Limited IDBI Investment Management Company Limited Indfund Management Limited ING Investment Asset Management Company Private Limited J M Capital Management Limited Jardine Fleming (I) Asset Management Limited Kotak Mahindra Asset Management Company Limited Nature of ownership Private Foreign Private Indian Banks Banks Banks Private Foreign Private Foreign Private Foreign Private Indian Private Indian Institutions Institutions Banks Private Foreign Private Indian Private Foreign Private Indian
Kothari Pioneer Asset Management Company Limited Jeevan Bima Sahayog Asset Management Company Limited Morgan Stanley Asset Management Company Private Limited Punjab National Bank Asset Management Company Limited Reliance Capital Asset Management Company Limited State Bank of India Funds Management Limited Shriram Asset Management Company Limited Sun F and C Asset Management (I) Private Limited Sundaram Newton Asset Management Company Limited Tata Asset Management Company Limited Credit Capital Asset Management Company Limited Templeton Asset Management (India) Private Limited Unit Trust of India Zurich Asset Management Company (I) Limited
Private Indian Institutions Private Foreign Banks Private Indian Banks Private Indian Private Foreign Private Foreign Private Indian Private Indian Private Foreign Institutions Private Foreign
The sponsorers of Association of Mutual Funds in India
Bank Sponsored : • SBI Fund Management Ltd. • BOB Asset Management Co. Ltd. • Canbank Investment Management Services Ltd. • UTI Asset Management Company Pvt. Ltd.
Institutions: • GIC Asset Management Co. Ltd. • Jeevan Bima Sahayog Asset Management Co. Ltd.
Indian: • BenchMark Asset Management Co. Pvt. Ltd. • Cholamandalam Asset Management Co. Ltd. • Credit Capital Asset Management Co. Ltd. • Escorts Asset Management Ltd. • JM Financial Mutual Fund • Kotak Mahindra Asset Management Co. Ltd. • Reliance Capital Asset Management Ltd. • Sahara Asset Management Co. Pvt. Ltd • Sundaram Asset Management Company Ltd. • Tata Asset Management Private Ltd. Predominantly India Joint Ventures: • Birla Sun Life Asset Management Co. Ltd. • DSP Merrill Lynch Fund Managers Limited
HDFC Asset Management Company Ltd
Predominantly Foreign Joint Ventures: • ABN AMRO Asset Management (I) Ltd. • Alliance Capital Asset Management (India) Pvt. Ltd. • Deutsche Asset Management (India) Pvt. Ltd. • Fidelity Fund Management Private Limited • Franklin Templeton Asset Mgmt. (India) Pvt. Ltd. • HSBC Asset Management (India) Private Ltd. • ING Investment Management (India) Pvt. Ltd. • Morgan Stanley Investment Management Pvt. Ltd. • Principal Asset Management Co. Pvt. Ltd. • Prudential ICICI Asset Management Co. Ltd. • Standard Chartered Asset Mgmt Co. Pvt. Ltd. Association of Mutual Funds in India Publications AMFI publishes mainly two types of bulletin. One is on the monthly basis and the other is quarterly. These publications are of great support for the investors to get intimation of the know-how of their parked money.
Introduction about Mutual Fund
Mutual Funds :Why ?
• • • • • • • • •
Professional management Diversification and Lowered risks Low costs Liquidity Transparency Flexibility Choice of schemes Tax benefits regulation
The advantages of investing in a Mutual Fund are: • Professional Management Mutual funds hire full-time, high-level investment professionals. Funds can afford to do so as they manage large pools of money. The managers have real-time access to crucial market information and are able to execute trades on the largest and most cost-effective scale.
• Diversification Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund unit-holders can benefit from diversification techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities. • Low Costs A mutual fund let's you participate in a diversified portfolio for as little as Rs.5,000/-, and sometimes less. And with a no-load fund, you pay little or no sales charges to own them. • Liquidity In open-ended schemes, you can get your money back promptly at net asset value related prices from the mutual fund itself. • Transparency You get regular information on the value of your investment in addition to disclosure on the specific investments made by the mutual fund scheme. • Convenience and Flexibility You own just one security rather than many; yet enjoy the benefits of a diversified portfolio and a wide range of services. Fund managers decide what securities to trade collect the interest payments and see that your dividends on portfolio securities are received and your rights exercised. It also uses the services of a high quality custodian and registrar in order to make sure that your convenience remains at the top of our mind. • Personal Service One call puts you in touch with a specialist who can provide you with information you can use to make your own investment choices. They will provide you personal assistance in buying and selling your fund units, provide fund information and answer questions about your account status. Our Customer service centers are at your service and our Marketing team would be eager to hear your comments on our schemes.
Mutual Funds : What is it ?
Mutual Fund Operation Flow Chart
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:
Mutual Fund : What is it made of ?
Investors: Every investor, given his financial position and personal disposition, has a certain tendency preference to take risk (risk profile / risk appetite). The hypothesis is that by taking an incremental risk (of losing capital, wholly or partly), it would be possible for the investor to earn an incremental return. But assuming risk without regularly monitoring it is foolhardy. Therefore, it would be prudent for investors who take a risk to be able to manage this risk. MF is a solution for investors who lack the time, or the inclination or the skills to actively manage their investment risk in individual securities. They can delegate this role to the MF, while retaining the right and the obligation to monitor their investments in the scheme (which, in turn, invests in individual securities). In the absence of a MF option, the moneys of such “passive” these investors would lie either in bank deposits or other “safe” investment options, thus depriving the investors of the possibility of earning a better return. Investing through a MF would make economic sense for an investor if his investment, over the medium to long term, fetches a return (net of all costs and expenses) that is
higher than what she would otherwise have earned by investing directly. Because the goal of investing is to accumulate real wealth – an enhanced ability to pay for goods and services – the ultimate focus of the long-term investor must be on real, not nominal, returns. Trustees: Trustees are the people within the mutual fund organization, who are responsible to ensure for ensuring that investors’ interests are properly taken care of In return for their services, they are paid trustee fees, which is normally charged to the scheme. Asset Management Company (AMC): AMCs manage the investment portfolios of schemes. An AMC’s Income for an AMC comes through from the management fees that are it charges to the schemes. The management fee is calculated as a percentage of net assets managed. Some countries provide for performance based management fees as well. Distributors Distributors earn a commission for bringing investors into the schemes of a MF. This commission is an expense for the scheme, although there are occasions when the AMC chooses to bear the cost, wholly or partly. Depending on the financial and physical resources at their disposal, they distributors could be:
Tier 1 distributors (having an owned or franchised network reaching out to investors all across the country); or Tier 2 distributors (regional players with some reach within their region); or Tier 3 distributors (marginal players).
It is paradoxical that distributors earn a commission from the AMC, but are expected to safeguard the financial health of investors from whom they do not earn a fee. It is almost like a doctor earning a commission from the pharmaceutical company, but expected to safeguard the physical health of the patient who does not pay him anything. Registrars The investor’s’ holding in various schemes is typically tracked by the scheme’s Registrar and Transfer agent (R&T). Some AMCs prefer to handle this role in-house. The registrar / AMC maintains an account of the investor’s’ investments in and disinvestment from the scheme. Requests to invest more money into a scheme, or to recover moneys against existing investments in the scheme are processed by the R&T. Custodian / Depository The custodian maintains custody of the securities in which the scheme invests (as distinct from the registrar who tracks the investment by investors in the scheme). This ensures an ongoing independent record of the investments of the scheme. The custodian also follows up on various corporate actions, such as rights, bonus and dividends declared by invested companies. In a situation where securities are increasingly being dematerialized, the role of the depository for such independent record of investments is increasing growing.
Different types of Mutual Funds :
Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry. TYPES OF MUTUAL FUND SCHEMES By Structure: Open - Ended Schemes : An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity. Close - Ended Schemes : A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. 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 they 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. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor. Interval Schemes: Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices. By Investment Objective : Growth Schemes: The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time. Income Schemes : 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 and Government securities. Income Funds are ideal for capital stability and regular income. Balanced Schemes : The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.
Money Market Schemes: The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods. Load Funds: A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history. No-Load Funds: A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work. Other Schemes : Tax Saving Schemes: These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is invested before September 30, 2000.
Special Schemes : Industry Specific Schemes : Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc. Index Schemes : Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50 Sector Specific Schemes: Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries or various segments such as 'A' Group shares or initial public offerings
Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settlor/Sponsor.
Dhirubhai H. Ambani Founder Chairman, Reliance Industries Limited, India December 28, 1932 - July 6, 2002 Major Group Companies: Reliance Industries Limited, India's largest private sector company.
Birthplace: Chorwad, village in Saurashtra (Gujarat), India Father's Name: Hirachand Govardhandas Ambani Mother's Name: Jamunaben Hirachand Ambani
About Reliance Capital Asset Management Ltd: Reliance Capital Asset Management Limited (RCAM), a company registered under the Companies Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund. Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited. Reliance Capital Asset Management Limited was approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this IMA, RCAM is authorized to act as Investment Manager of Reliance Mutual Fund. The net worth of the Asset Management Company including preference shares as on March 31, 2005 is Rs.30.13 crores. RCAM has been registered as a portfolio manager vide SEBI Registration No. INP000000423 and renewed effective 1st August, 2003.
RCAM has commenced these activities. It has been ensured that key personnel of the AMC, the systems, back office, bank and securities accounts are segregated activity wise and there exists systems to prohibit access to inside information of various activities. As per SEBI Regulations, it will further ensure that AMC meets the capital adequacy requirements, if any, separately for each such activity. RCAM has been appointed as the Investment Manager of "Reliance India Power Fund", a Venture Capital Fund registered with SEBI vide Registration no.IN/VCF/05-06/062 dated June 16, 2005 but this activity is yet to commence.
Mr. Amitabh Chaturvedi * Raheja Empress, Flat No. 1201/1202, 12th Floor, Veer Savarkar Marg, Opp. Siddhi Vinayak Temple, Prabhadevi, Mumbai - 400 025 Mr. Kanu Doshi 102, Shivala, Khatau Road, Cuffe Parade, Mumbai - 400 005 Chartered Accountant
Director: Reliance Asset Management (Singapore) Pte Limited,
Reliance Asset Management (Mauritius) Limited, Reliance Infoinvestments Limited.
Chairman: Matrix Advisors (India) Private Limited Director:
BOB Capital Markets Limited,Peoples Financial Services Limited Alphaplus Investment Management Private Limited.
Mr. Manu Chadha C-35, Malcha Marg, Chankyapuri, New Delhi - 110 021 Chartered Accountant
Director: TRC Financial Services Ltd, Himalayan Crest Power Ltd, GIC Housing Finance Ltd., Kotla Hydro Power Ltd., Ispat Industries Ltd, SBI Funds Management Pvt. Ltd.
About Reliance Mutual Fund : Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settlor/Sponsor and Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee. RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBI's letter no. IMD/PSP/4958/2004 date 11th. March 2004. Reliance Mutual Fund was formed to launch various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with Average Assets Under Management (AAUM) of Rs. 88,388 Crs (AAUM for 30th Apr 09 ) and an investor base of over 71.53 Lacs. Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest growing mutual funds in the country. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 118 cities across the country. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. "Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital being held by minority shareholders." Reliance Capital Ltd. is one of India’s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and
proprietary investments, stock broking and other financial services The main objectives of the Trust are:
To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unit holders; To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings and To take such steps as may be necessary from time to time to realise the effects without any limitation.
The Sponsors Reliance Capital Limited Corporate & Registered Office : Reliance Capital Ltd. H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai - 400 710.Tel. 022 – 30327000, Fax. 022 – 30327202
PRODUCTS AND SERVICES OF RELIANCE MF
• Equity Schemes Reliance Equity Fund (An open-ended diversified Equity Scheme.) The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity & equity related securities of top 100 companies by market capitalization & of companies which are available in the derivatives segment from time to time and the secondary objective is to
generate consistent returns by investing in debt and money market securities. Reliance Tax Saver (ELSS) Fund (An Open-ended Equity Linked Savings Scheme.) The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.
Reliance Equity Opportunities Fund (An Open-Ended Diversified Equity Scheme.) The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity securities & equity related securities and the secondary objective is to generate consistent returns by investing in debt and money market securities.
Reliance Vision Fund (An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to achieve long term growth of capital by investment in equity and equity related securities through a research based investment approach.
Reliance Growth Fund (An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to achieve long term growth of capital by investment in equity and equity related securities through a research based investment approach.
Reliance Index Fund (An Open Ended Index Linked Scheme.) The Investment Objective under the Nifty Plan is to replicate the composition of the Nifty, with a view to endeavor to generate returns, which could approximately be the same as that of Nifty. The Investment Objective under the Sensex plan is to replicate the composition of the Sensex, with a view to endeavor to generate returns, which could approximately be the same as that of Sensex. Reliance NRI Equity Fund (An open-ended Diversified Equity Scheme.) The Primary investment objective of the scheme is to generate optimal returns by investing in equity or equity related instruments primarily drawn from the Companies in the BSE 200 Index
Debt Schemes.: Reliance Monthly Income Plan (An Open Ended Fund. Monthly Income is not assured & is subject to the availability of distributable surplus ) The Primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unitholders and the secondary objective is growth of capital.Primarily the investment shall be made in debt and money market securities (i.e. 80%) with a small exposure (i.e. upto 20%) in equity. Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt Plan Open-ended Government Securities Scheme) The primary objective of
the Scheme is to generate Optimal credit risk-free returns by investing in a portfolio of securities issued and guaranteed by the central Government and State Government Reliance Income Fund (An Open-ended Income Scheme) The primary objective of the scheme is to generate optimal returns consistent with moderate levels of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt & Money Instruments.
Reliance Medium Term Fund (An Open End Income Scheme with no assured returns.) The primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unit holders and the secondary objective is growth of capital Reliance Short Term Fund (An Open End Income Scheme) The primary investment objective of the scheme is to generate stable returns for investors with a short investment horizon by investing in Fixed Income Securities of short term maturity. Reliance Liquid Fund (Open-ended Liquid Scheme). The primary investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments.
Reliance Fixed Term Scheme (Close-ended Income Scheme) The primary objective of the Scheme is to seek to achieve regular returns / growth of capital by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the plan with the objective of limiting interest rate volatility. Reliance Floating Rate Fund (An Open End Income Scheme) The primary objective of the scheme is to generate regular income through investment in a portfolio comprising substantially of Floating Rate Debt Securities (including floating rate securitized debt and Money Market Instruments and Fixed Rate Debt Instruments swapped for floating rate returns). The scheme shall also invest in Fixed rate debt Securities (including fixed rate securitized debt, Money Market Instruments and Floating Rate Debt Instruments swapped for fixed returns Reliance NRI Income Fund (An Open-ended Income scheme) The primary investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risks. This income may be complimented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in debt Instruments. Reliance Fixed Maturity Fund - Series I (A Close Ended Income Scheme) The primary investment objective of the Scheme is to seek to achieve
regular returns / growth of capital by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the Plan with the objective of limiting interest rate volatility. Reliance Fixed Maturity Fund - Series II (A closed ended Income Scheme) The primary investment objective of the Scheme is to seek to achieve growth of capital by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the respective plans. Reliance Liquidity Fund (An Open - ended Liquid Scheme) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. Reliance Regular Savings Fund (An Open - ended scheme) The Investment Objectives: Debt Option: The primary investment objective of this plan is to generate optimal returns consistent with moderate level of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly investments shall predominantly be made in Debt & Money Market Instruments. Equity Option: The primary investment objective is to seek capital appreciation and or consistent returns by actively investing in equity / equity related securities. Hybrid Option: The primary investment objective is to generate
consistent return by investing a major portion in debt & money market securities and a small portion in equity & equity related instruments.
Sector Specific Schemes
Sector Funds are specialty funds that invest in stocks falling into a certain sector of the economy. Here the portfolio is dispersed or spread across the stocks in that particular sector. This type of scheme is ideal for investors who have already made up their mind to confine risk and return to a particular sector. Reliance Banking Fund Reliance Mutual Fund has an Open-Ended Banking Sector Scheme which has the primary investment objective to generate continuous returns by actively investing in equity / equity related or fixed income securities of banks. Reliance Diversified Power Sector Fund Reliance Diversified Power Sector Scheme is an Open-ended Power Sector Scheme. The primary investment objective of the Scheme is to seek to generate consistent returns by actively investing in equity / equity related or fixed income securities of Power and other associated companies.
Reliance Pharma Fund Reliance Pharma Fund is an Open-ended Pharma Sector Scheme. The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of Pharma and other associated companies.
Reliance Media & Entertainment Fund Reliance Media & Entertainment Fund is an Open-ended Media & Entertainment sector scheme. The The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of media & entertainment and other associated companies
WHY RELIANCE MUTUAL FUND ?
• • •
Reliance Mutual Fund ,a part of the –Anil Dhirubhai Ambani Group(RReliance mutual fund offer investors a well –rounded portfolio of Reliance mutual fund has a presence over 80 cities across the country. Reliance mutual fund investor base of over 2 million and manages A fund from Reliance mutual fund ,an AMC with a established track Investor –friendly personal and technological support. Strong and consistent fund management team.
ADAG) is one of the fastest growing mutual fund company in the country. products to meet varying investor requirements.
assets over Rs.88388 crore as on 30 April 2009,(source:www.amfiindia.com)
record of consistent return.
• country. •
Reliance Mutual Fund ,a part of the –Anil Dhirubhai Ambani
Group(R-ADAG) is one of the fastest growing mutual fund company in the Reliance mutual fund offer investors a well –rounded portfolio of Reliance mutual fund has a presence over 118 cities across the Reliance mutual fund investor base of over 2 million and manages A fund from Reliance mutual fund ,an AMC with a established Strong and consistent fund management team.
products to meet varying investor requirements. country,with investor base over 71.53 lacs.
assets over Rs.88388 crore as on April 30,2009(source:www.amfiindia.com)
track record of consistent return. •
Investor –friendly personal and technological support.
Ensures better costumer services, conveniences ,communication by efficient network.
Quality product & services – High quality standard maintained. Brand Name – ‘Reliance Mutual Fund ’ is popular brand name among customers.
• Good image between customers.
• Less existence in rural areas
• less expenditure on advertising and promotional schemes
• Jodhpur is a big industrial area so there is a huge opportunities.
Reliance mutual fund has a very good quality products &schemes comparison to other competitor. Reliance is first company which launched Equity fund with hedging feature which aim to minimize risk.. • Good perception among the customer.
Less schemes provided by Reliance mutual fund comparison to competitor. • Lot of competitor in market. • Lot of schemes are provided by competitors. • Share market may be go down in future.
• The Mutual Fund is not guaranteeing or assuring any dividend/ bonus.
Analysis and Interpretation of Data
Knowing the awareness and perception of the customers is very important in any industry. this provide insight into the customer behavior and his expectation from the industry players. a proper understanding of the awareness and perception would definitely benefit the players. this survey attempt to know the mutual fund investor better. it examines some interesting choices of the retail investor including the reasons behind investing in mutual funds and the risk tolerance levels of the investors. the investor knowledge about the mutual funds and what according to him are the best mutual funds is also analyzed. this udaipur city survey was conducted to know the retail investor awareness and perception about mutual funds. It is hoped that this survey in udaipur city would go a long way in benefiting for reliance mutual fund. The total sample for the study was 100 across Jodhpur city. I. AN OVERVIEW : This section shows an simple overview of respondents like their age ,gender, income profile, saving habits and qualification (a) Age-profile:
Table No. I(a) showing age profile of respondents: S. No Age No .of respondents 1. 20-25 19 2. 25-40 40 3. 40-55 21 4. 55-60 15 5. 60-Above 5 Total 100
Percentage 19% 40% 21% 15% 5% 100%
Age-profile 55-60 15% 60-Above 5% 20-25 19% 20-25 25-40 40-55 55-60 60-Above
INTERPRETATION : In this survey I found the maximum number of respondents belongs to the age group of 25-40 years, followed by 40-55 years of age category. (b) Gender-wise: Table No. I(b) showing gender wise profile of respondents: S. No Gender No. of respondents 1. Male 92 2. Female 8 Total 100
Percentage 92% 8% 100%
Gender-wise overview Female 8%
INTERPRETATION : Table No.I(b) represents the gender ratio of the respondents in this survey.92%of the covered respondents were male and remaining 8% were female (c)Income Profile: Table No. I(c) showing income wise profile of respondents: S. No Income No. of respondents 1. Less then 1.0 34 Lakh 2. 1.0-2.0 Lakh 38 3. 2.0-3.0 Lakh 30 4. 3.0-5.0 Lakh 6 5. More then 4 5.0 Lakh 6. No response 5 Total 100 Percentage 17% 38% 30% 6% 4% 5% 100%
Income Profile 40% 35% 30% 25% 20% 15% 10% 5% 0% No. of respondents 17% 38% 30% Less then 1.0 Lakh 1.0-2.0 Lakh 2.0-3.0 Lakh 3.0-5.0 Lakh More then 5.0 Lakh No response
INTERPRETATION : In this survey I found the break up of the respondents. Around 38%of the respondents have an income between of Rs.1.0-2.0 Lakhs per annum and 30% of respondents in between 2.0-3.0 Lakhs .it display the income profile of respondents.
(d) Saving Habits : . Table No. I(d) showing saving habits profile of respondents: S. No Savings No. of respondents 1. Up to Rs. 31 2000 2. Rs.200133 5000 3. Rs.500116 10000 4. Rs.100013 20000 5. Above 1 Rs.20001
Percentage 31% 33% 16% 3% 1%
No Response Total
Rs.1000120000 3% aboveRs.20001 1%
Saving Habits of respondents No response 16%
up to Rs.2000 31%
up to Rs.2000 Rs. 2001-5000 Rs.5001-10000 Rs.10001-20000 aboveRs.20001 No response
Rs. 2001-5000 33%
INTERPRETATION : In this survey around 33% of the respondents reported to have a saving in the range of Rs.2001-5000 per month .only 1% of the respondents reported having in higher bracket i.e more then 20001 per month. (e)Qualification : Table No. I(e) showing Qualification profile of respondents: S.No Qualification No. of respondents 1. Undergraduates 6 2. Graduates 39 3. Postgraduates 40 4. Others 1 5. No response 14 Total 100 Percentag e 6% 39% 40% 1% 14% 100%
40% Undergraduates Graduates Postgraduates Others No response
40% 30% 6% 20% 10% 0% 1% No. of respondents 14%
INTERPRETATION : The surveyed group are well educated group with 40%being post graduates and 39%being graduates. around 6% of the samples collected were undergraduates. II. KNOWLEDGE OF MUTUAL FUNDS : In the survey ,I attempted to understand from the investors their knowledge of Mutual fund. (a)Knowledge of Mutual Fund: Table No. II(a) showing knowledge of mutual fund of respondents: S.n No Knowledge No. of Percentage of Mutual respondents Funds 1. Very good 4 4 2. Good 9 9 3. Average 19 19 4. Poor 64 64 5. No response 4 4 Total 100 100%
Knowledge of Mutual Fund Average 19% Poor 64%
Very good Good
Other 68% Good 9% Very good 4%
Average Poor No response
No response 4%
INTERPRETATION : In this survey it was found that 64% of the respondents don’t’ know or their knowledge is very poor about Mutual funds. they ,while 4% respondents rated their understanding as very good about Mutual funds. it shows knowledge of Mutual funds are very low.. (b) Knowledge related to share market: Table No. II(b) showing knowledge related to share market of respondents: S. No Knowledge No. of Percentage related to respondents share market 1. Yes 32 32% 2. No 64 64% 3. Can’t say 4 4% Total 100 100%
Knowledge related to share market: Can't say 4% Yes 32% Yes No Can't say No 64%
INTERPRETATION : It was found that 64% of the respondents don’t know that the Mutual fund is related to share market. they also don’t know that Mutual funds returns is affected by the fluctuation in share market. III. Investment objective/decisions : This section of survey was aimed at understanding the main reason behind the investment decision made by an individual. I tried to catch the factor that contribute to making of an investment portfolio off an individual. (a)Investment objective: S. No 1. 2. 3. 4. Investment objective Capital Gain Generate Regular return Secure Future Tax benefits No. of respondents 21 6 59 14 Percentage 21% 6% 59% 14%
Investment Objective of Investor
tax benefits 14% capital gain 21% generate reguar return 6% capital gain generate reguar return secure future tax benefits
secure future 59%
INTERPRETATION : Total number of 100 responses were generated for this question and multiple response were sought for the various investment objectives. the analysis brings out the fact that investor were more concerned about the secure future(59%) and capital gains(21%), and after that they considered tax benefits(14%) and regular return(6%) as their main investment objectives. (b)Decision affecting Factors: S. No 1. 2. 3. 4. 5. Decision affecting Factors Economic scenario Company image Fund performance Fund manager image Tax incentive No. of respondents 19 44 21 2 14 Percentage 19% 44% 21% 2% 14%
DECISION AFFECTING FACTORS 100 80
60 40 20 0 38 42 28 4 No. of Respondents
Company image Fund performance Fund manager image Tax incentive
INTERPRETATION : There are certain overall factors that tend to affect the investment decision decision of the investor, such as economic scenario. I tried to know the respondents opinion on these macro factors that further tend to affect their investment decisions. This survey showed that company image acts as the determining factor for their investment with 44%.the second most important factor was fund performance(21%) and economic scenario(19%). (c)Information sources regarding Mutual Funds: S. No 1. 2. 3. 4. 5. 6. Information sources Print media Electronic media Friends/Relativ e Financial advisors Personal analysis Agents Total No. of respondents 29 21 6 19 4 21 100 Percentage 29% 21% 6% 19% 4% 21% 100%
Information sources regarding Mutual Funds
21% 4% 19%
Print media Electronic media Friends/Relative Financial advisors Personal analysis Agents
INTERPRETATION : In this survey I asked from the respondents about the kind of media that affect their investment decision.29% of the respondents said that the print media is the major influencer in making their investment decisions, electronic media(21%) and agents(21%) were the second major influencer in investment decision making. (d)Priority of reason for investment: S. No 1. 2. 3. 4. 5. 6. Priority for investment Saving for future Tax incentive Returns Future outlook Brand value Risk factors Total No. of respondents 51 14 23 7 2 3 100 Percentage 51% 14% 23% 7% 2% 3% 100%
Brand value 2% Future outlook 7% Returns 23%
Priority of reason for investment
Risk factors 3% Saving for future Saving for future 51%
Tax incentive Returns Future outlook Brand value Risk factors
Tax incentive 14%
INTERPRETATION: In this survey I found that saving for the future was the foremost important criteria for investment in the minds of investors (51%),while 23%respondents said that they considered the returns before making investment decisions. IV. Risk-Return profile : In my study I also tried to understand the risk and return matrix of an individual investor. this was done in order to obtain information Information on the relationship between the kind of funds an individual investor opts to invest in and the relative expectation he has on the return front. (a)Investment Avenues: S. No Investment Avenues 1. Post office schemes 2. Insurance 3. Banks 4. Share market 5. Mutual funds 6. Govt. No. of respondents 12 4 66 3 7 8 Percentage 12% 4% 66% 3% 7% 8%
Insurance 4% Post office schemes Insurance Banks Share market Mutual funds Govt. securities
Investment Avenues Mutual funds 7% Govt. securities 8% Post office schemes 12%
Share market 3%
INTERPRETATION: The risk return matrix of an individual is the key factor in framing his investment portfolio. I asked the respondents to select the investment avenues they would prefer to keep their investment portfolio. 66% of investor preferred to have banks savings as one of the investment avenue., while 12% of the investor said that they would certainly would like to have post office schemes as one of their preferred investment avenue. (b)Return expectation from Mutual funds: S. No Return expectation from Mutual funds 5%-10% 11%-15% 16%-20% More then 20% Can’t say Total No. of respondents 5 24 31 16 24 100 Percentage
1. 2. 3. 4. 5.
5% 24% 31% 16% 24% 100%
Return expectation from Mutual funds 16% -20% 31%
Can’t say 24%
5%-10% 11%-15% 16%-20% More then 20%
11% -15% 24%
5% -10% 5%
More then 20% 16%
INTERPRETATION: In this survey when I came to return expected ,I found that 31% of the investor are expecting a return in range of 16%-20%,while 24%of the investor are expecting 11%-15% rate of return but 24% of investor can’t said about return expectation. (c) Investment pattern preferred in Mutual fund by investor : S. No Investment pattern preferred in Mutual fund Growth schemes Balanced schemes ELSS No. of respondent s 41 11 18 Percentage
1. 2. 3.
41% 11% 18%
4. 5. 6.
Sector specific schemes Liquid schemes Can’t say Total
6 7 17 100
6% 7% 17% 100%
Investment pattern preferred in Mutual fund by investor
50% 40% 30% 20% 10% 0% 18% 11% 6% 7% 17% 41%
Growth schemes Balanced schemes ELSS Sector specific schemes Liquid schemes Can’t say
No. of respondents
INTERPRETATION: The type of schemes selected for investment depends largely on the risk return matrix of an individual and the time horizon of his investment. My findings demonstrate that 41% of investors prefer to invest in growth schemes,18% of investor in ELSS schemes. (d) Return in diversified schemes in Mutual fund : S. No Return in diversified schemes in Mutual fund Yes No Total No. of respondents 23 77 100 Percentage
23% 77% 100%
Return in diversified schemes in Mutual fund
Yes 23% No 77%
INTERPRETATION: In this survey I tried to know the knowledge of investors about the return on diversified schemes .I found that 77%of surveyed people don’t know that the return on diversified mutual fund schemes is more then other schemes. so, it shows that vary lake of awareness about mutual funds. (e) Sources of product information : S. No 1. 2. 3. 4. 5. Sources of product information Company brochures Company websites Investment advisor Newspaper Friends and relatives Total No. of respondents 39 3 14 37 7 100 Percentage 39% 3% 14% 37% 7% 100%
Sources of product information
40% 35% 30% 25% 20% 15% 10% 5% 0%
Company brochures Company websites Investment advisor Newspaper Friends and relatives
14% 3% 7%
No. of respondents
INTERPRETATION: This chart represents the different sources of product information, through which investor generally tend to know regarding the mutual fund’s new schemes and products.39% of the respondents said that they receive the product information from the company brochures and 37% respondents said that they get it from newspaper.
Out of 100 people being surveyed to know the awareness and perception among people about mutual funds, I found that 14% knew about mutual funds who mostly invest in these funds while 86% where not at all aware about the product and its investments
• Some People were less interested in knowing about the product.
• They have the impression that these funds are not safe, as the money is locked in for a particular period, which is known as the lock in period. • Mutual funds, in a country like India is in its growth stage and it would take some time to enter into the maturity stage. • People investing into mutual funds basically invest at the financial year-end. • They invest into these funds mostly for tax saving purposes other than investment or return purposes.
• There should be more awareness made about the Reliance Mutual Fund and their services by giving more advertisement. • The Reliance Mutual Fund should go for tie-ups with the corporate to invest in RMF.
• Reliance Mutual Fund should organize some events to build its Brand Image in the minds of the people. • As per customer’s point of view, they feel that Reliance Mutual Fund should open more number of branches for the convenience of people.
1. The main motive of my job the Reserach is to brand building of Reliance Mutual Fund and creating awareness & sales, that is it’s an brand building & sales orientated. 2. The objective of the Reliance MF is to create awareness of the products among the general public and to know the perception of the general public regarding the Mutual Funds and try to fulfill their requirement. 3. Analyzing the market survey and thereby finding out the investment pattern of the customer.
AS been analyzed people are very rarely aware of mutual funds as people were not properly educated about the policies but when made aware they wanted to get more information about the funds by this we can say that mutual fund is in its infant stage today but it will reach its growth stage within no time.
Mutual fund has been compared to Unit linked polices people are more aware of ULIP than Mutual fund which takes more customer to the insurance sector but slowly as people are getting more aware of the funds they will surely start investing in these funds as some of the mutual fund companies have already started giving more than 30% returns which is really a huge amount being 6% minimum and 10% maximum guidelines given a company. Mutual funds in this competitive world is very helpful for the people who are interested into investments as this particular fund can take less investment but give u hefty.
Age profile Gender Income profile Saving habits Qualification : : : : :
Q1. Do you know about the Mutual Funds ?
(a) Very good (c)Average (e)No response
Q2. What is your objective /motive behind investment ? (a)Capital gain (c)Secure future Q3. Where do you generally invest/save ? (a)Post office schemes (b)Insurance (c)Banks (d)Share market (e)Mutual funds (f)Govt. securities Q4. How do you prioritize the reason for investment ? [rank from 1-5,1 being highest priority] Saving for future __________ Tax incentives __________ Returns __________ Future outlook __________ Brand value __________ Risk factor __________ Q5. How did you come to know about mutual fund ? (a)Print media (b)Electronic media (c)Friend/relative (d)Financial advisor/C.A (c)Personal analysis (f)Agents Q6. What factors affect your decision for investment in Mutual Fund ? (a)Economic scenario (b)Company image (c)Fund performance (d)Fund manager image (b)Generate regular (d)Tax benefits
(e)Tax incentive Q7. How much return you expect from Mutual Fund ? (a)5%-10% (b)11% -15% (c)16%-20% (d)more than 20% (e)can’t say Q8. What kind of investment pattern you prefer in Mutual Fund ? (a)Growth schemes (b)Balanced schemes (c)ELSS (d)Sector specific schemes (e)Income schemes (f)Liquid schemes Q9. What are the sources of information gathering for you regarding mutual fund? (a)Company brochures (b)Company websites (c)Investment advisor (d)Newspaper (e)Friends and relatives Q10. Are you aware that by investing in diversified investment avenues the average rate of return would considerable go up ? (a)Yes Q11. Do you know that mutual fund is related to share market? (a)yes (c)can’t say (b)no (b)No
WEB SITES VISITED:
www.amfiindia.com www.mutualfundsindia.com www.sebi.gov.in www.reliancemutual.com www.yahoo.com www.google.com www.rbi.org.in
BOOK REFERRED: Marketing management by Phillip Kotler
Think Bigger ,Think Better
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