SUMMER INTERNSHIP PROJECT REPORT 2008-2009 Corporate Guide:Gaurav phatkar Faculty Guide:Prof,Dr.


Submitted in Partial Fulfillment for the Award of Degree MASTER IN BUSSINESS ADMNISTRATION Submitted by: - Vinay Rastogi

FACULTY GUIDE CERTIFICATE This is to certify that Vinay Rastogi, a student of IBSAR Institution of Managem ent, Karjat pursuing his MMS/MBA (FINANCE) has worked under my guidance and supe rvision on his Work entitled “Reliance Mutual Fund”. To the best of my knowledge thi s is an original piece of work.

(Prof. Dr. Phopale) Faculty finance

DECLARATION I Vinay Rastogi do hereby declare that the project report entitled “Reliance Mutua l Fund” being submitted to Mumbai University of, this is my own piece of work and it has not been submitted to any other institute or published at any time before .

Vinay R Rastogi IBSAR insti tution of Management

ACKNOWLEDGEMENT This report bears the imprint of many people. Right from the experienced staff o f Reliance Money, to the staff of IBSAR Institution of Management Karjat,without whose support and guidance I would have not got the unique opportunity to succe ssfully complete my internship in this esteemed organization. I take this opportunity to express my deep gratitude to all the employees of, Re liance Money, Thane. Also I am indebted for the rich guidance, knowledge and sug gestions provided by my guide, Prof. pophle who took sincere efforts and illustr ated the Marketing Concept of Financial Products, with their vast knowledge in t he field, which helped me in carrying out my internship. I am gratified to Prof. Pophle for their earnest coordination owing to which, I had the leg-up of undertaking the internship at the prominent organization, Reli ance Money Pvt ltd. Last but not least, I also thank all those people whom I met in the industry dur ing my internship and helped me to accomplish my assignments in the most efficie nt and effective manner.

Date: 18th Aug 2008 Place: Karjat

(Vinay Rastogi)

EXECUTIVE SUMMARY The project work is pursued as a part of MBA (FINANCE) Curriculum at IBSAR INSTI TUTION OF MANAGEMENT, KARJAT. It is undertaken as a traineeship at Reliance Mone y Ltd. The project is done under expert supervision and guidance of Prof. Dr.POP HLE(Lecture Finance) and Mr. Gaurav patkar(Center Sales Manager, Reliance Money Thane) The Project is about the study of marketing and sales of financial products and also the efforts done to make improvements in the customer acquisition process f or better results.

At RELIANCE MONEY, initially the trainees were imparted process and product know ledge. They were given sufficient time to know about the products and also about sales and distribution channel They had to work with the sales representatives of the Distributor and think of ways of improving the sales and distribution ch annel and implementing them. The main aim was to increase sales and for this dif ferent ways were tried and implemented. They were provided with database and had to make cold calls from the data. Company activity was also one of the major so urces for generating business. Initially they even accompanied sales representat ives to the clients place. Main objective was to know the need of the customer a nd how to fulfill that in the best way.


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INTRODUCTION Mutual fund Mutual funds can give investors access to emerging markets A mutual fund is a professionally managed type of collective investment scheme t hat pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a f und manager that trades the pooled money on a regular basis. As of early 2008, t he worldwide value of all mutual funds totals more than $26 trillion. Since 1940, there have been three basic types of investment companies in the Uni ted States: open-end funds, also known in the US as mutual funds; unit investmen t trusts (UITs); and closed-end funds. Similar funds also operate in Canada. How ever, in the rest of the world, mutual fund is used as a generic term for variou s types of collective investment vehicles, such as unit trusts, open-ended inves tment companies (OEICs), unitized insurance funds, and undertakings for collecti ve investments in transferable securities (UCITS). There are a lot of investment avenues available today in the financial market fo r an investor with an invest able surplus. He can invest in Bank Deposits, Corpo rate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportio nately high. The recent trends in the Stock Market have shown that an average re tail investor always lost with periodic bearish tends. People began opting for p ortfolio managers with expertise in stock markets who would invest on their beha lf. Thus we had wealth management services provided by many institutions. Howeve

r they proved too costly for a small investor. These investors have found a good shelter with the mutual funds. Like most developed and developing countries the mutual fund cult has been catching on in India. The reasons for this interesting occurrence are: 1. Mutual funds make it easy and less costly for investors to satisfy their need for capital growth, income and/or income preservation. 2. Mutual fund brings the benefits of diversification and money management to the individual investor, providing a Opportunity for financial success that was once available only to a select few. Fig.5.1 Concept of mutual fund HISTORY • Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Ac t in 1963, and started its operations in 1964 with the issue of units under the scheme US-641. In 1978 UTI was delinked from the RBI and Industrial Development Bank of India (IDBI) took over the Regulatory and administrative control in place of RBI. • In the year 1987 Public Sector banks like State Bank of India, Punjab National Bank, Indian Bank, Bank of India, and Bank of Baroda have set up mutual funds. • Apart from these above mentioned banks Life Insurance Corporation [LIC] and Ge neral Insurance Corporation [GIC] too have set up mutual fund. LIC established i ts mutual fund in June 1989.while GIC had set up its mutual fund in December 199 0.The mutual fund industry had assest under management of Rs. 47,004 crores. • With the entry of Private Sector Funds a new era has started in Mutual Fund Ind ustry [e.g:- Principal Mutual Fund.]

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 cro res of assets under management and with the setting up of a UTI Mutual Fund, con forming to the SEBI Mutual Fund Regulations, and with recent mergers taking plac e 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, th ere were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

Types of Mutual Funds Scheme in India Open end versus Closed end Schemes There are two different types of funds.

• Open-ended Fund/ Scheme • Closed-ended fund/ Scheme The key differences between the closed-end and open-end schemes area as follows: The subscription to a closed-end scheme is kept open only for a limited period ( usually one month to three months). Where an open-end scheme accepts funds from investors by offering its units or shares on a continuing basis. A closed-end scheme does not allow investors to withdraw funds as and when they like, whereas an open-end scheme permits investors to withdraw funds on a contin uing basis under a re-purchase arrangement. A closed-end scheme has a fixed maturity period (usually five to fifteen years) whereas an open-end scheme has no maturity period. The closed-end schemes are listed on the secondary market, whereas the open-end schemes are ordinarily not list. In India, three entities are central to a mutual fund operation: • The sponsor, • The mutual fund • The asset management company. The sponsor is the key who establishes the mutual fund and the asset Management Company. For example, Templeton International (sponsor) set up the Templeton Mu tual Fund which has been constituted as a trust under the Indian Trusts Act, 188 2 and registered with SEBI. The mutual fund is, in a way, an umbrella organizat ion that floats various schemes in which investors participate. The asset manag ement company, organized as a separate joint Stock company, manages the funds of mutual fund under its various schemes. For example, Templeton Asset Management (India) Pvt. Ltd., the asset management company set up by Templeton Internation al, manages the various schemes of Templeton Mutual Fund. Why one should invest in mutual funds? Mutual funds are preferable mode of investment due to the following reasons: • Reduction of risk • Professional Management • Tax benefits • Low transaction costs • Highly regulated • Liquidity • Easy to administer Why one should not invest in mutual funds? The following are the reasons, which are deterrent to mutual fund investment: • No control over costs • No tailor made portfolios • Managing a portfolio of funds Constitution of a Mutual Fund There are a number of bodies that form a part of the mutual fund, they are as fo llows: • Sponsors The sponsor is the company which sets up the mutual fund. It means anybody corpo rate acting alone or in combination with another body corporate established a mu tual fund after initiating and completing the formalities. • Trustees The management of the mutual fund is subject to the control of the board of trus tees of the fund. They guide the operations of the fund and carry the crucial re sponsibility to see that AMC always act in the best interest of the investors. • Asset Management Company The mutual fund is operated by a separately established asset management company (AMC).It manages the funds of the various schemes. It is entrusted with the spe cific task of mobilizing funds under the scheme. • Custodian A custodian is a person carrying on the activities of the safekeeping of the sec

urities or participating in any clearing system on behalf of the clients to effe ct deliveries of the securities. • An EQUITY FUND invests mainly in stocks and shares of companies. EQUITY FUNDS ty pically aim to generate long term growth in the unit capital. There are a variet y of ways in which an equity portfolio can be created for investors. There are t hus the following choices in equity funds: o Simple equity funds o Industry Specific funds o Index funds o ELSS Target market: They are ideal for investors having a long term perspective, Speculative outlook - the equity cult, who would like to make gains in the shortest period of time a nd investors in their prime earning years-specifically the young who have a dece nt earning and can take some kind of risk. • A DEBT FUND invests mainly in debt instruments like bonds and debentures, with h igh and consistent dividend payout. These funds give decent returns but the capi tal appreciation is not much. There are a variety of ways in which a debt portfo lio can be created for investors. There are thus the following choices in debt f unds: o Liquid and Money market funds o Gilt Funds o Monthly Income Plan o Floating rate funds Target market: o Retired people and others with a need for stability and regular income. o Investors who need some income to supplement their earnings. • A BALANCED FUND invests in both equity and debt instruments. It aims to generate growth and income by periodically distributing its assets over both types of se curities. • Target market: These ideal for investors looking for a combination of income and moderate growt h. How to invest in mutual funds? The following are the essential steps which one must take into account while inv esting in Mutual funds:Step 1- Identify the investment needs Financial goals of an individual will vary, based on his/her age, lifestyle, fin ancial independence, family commitments, level of income and expenses among many other factors. Therefore the first step is to assess one’s needs, which can be do ne by asking oneself these questions: Net asset value (NAV) The net asset value, or NAV, is the current market value of a fund s holdings, l ess the fund s liabilities, usually expressed as a per-share amount. For most fu nds, the NAV is determined daily, after the close of trading on some specified f inancial exchange, but some funds update their NAV multiple times during the tra ding day. The public offering price, or POP, is the NAV plus a sales charge. Ope n-end funds sell shares at the POP and redeem shares at the NAV, and so process orders only after the NAV is determined. Closed-end funds (the shares of which a re traded by investors) may trade at a higher or lower price than their NAV; thi s is known as a premium or discount, respectively. If a fund is divided into mul tiple classes of shares, each class will typically have its own NAV, reflecting differences in fees and expenses paid by the different classes. Some mutual funds own securities which are not regularly traded on any formal ex



change. These may be shares in very small or bankrupt companies; they may be der ivatives; or they may be private investments in unregistered financial instrumen ts (such as stock in a non-public company). In the absence of a public market fo r these securities, it is the responsibility of the fund manager to form an esti mate of their value when computing the NAV. How much of a fund s assets may be i nvested in such securities is stated in the fund s prospectus. Nature of Income Distribution to Investors At a broad level, the investors have three options: • DIVIDEND PAY OUT OPTION In this option investors receive dividends from the mutual fund, as and when suc h dividends are declared. Dividends are paid in the form of warrants, or are dir ectly credited to the investor’s bank accounts. • GROWTH OPTION Investors who do not require periodic income distributions can choose the growth option, where the incomes earned are retained in the investment portfolio, and allowed to grow, rather than being distributed to the investors. • RE-INVESTMENT OPTION In this option investors re invest the dividends that are declared by the mutual fund, back into the fund itself, at NAV that is prevalent at the time of reinve stment .In this option, the number of units held by the investor will change wit h every reinvestment. The value of the units will be similar to that under the d ividend option. Different schemes of Reliance Mutual fund The different schemes offered to various kinds of investors by Reliance mutual f und can be broadly classified into three categories –Equity, Debt and sector speci fic. Each of these categories has different investment objectives and therefore has different portfolio. Equity Schemes • Reliance Growth Fund • Reliance Vision Fund • Reliance NRI Equity Fund • Reliance Equity Opportunities Fund • Reliance Index Fund • Reliance Tax Saver Fund • Reliance Equity Fund Debt Schemes • Reliance Income Fund • Reliance Medium Term Fund • Reliance Short Term Fund • Reliance Liquid Fund • Reliance Monthly Income Plan • Reliance Gilt Securities Fund • Reliance Floating Rate Fund • Reliance NRI Income Fund Sector Specific Schemes • Reliance Banking Fund • Reliance Pharma Fund • Reliance Media and Entertainment Fund • Reliance Diversified Power Sector Fund As I was more involved in the understanding and promotion of the NFO of Reliance Equity Fund during the initial part of my training. I would like to summarize i t in brief. Reliance Equity Fund The Reliance Equity Fund is an open ended diversified equity fund that seeks to provide long term capital appreciation by investing in a portfolio constituted o f equity and equity related securities of top 100 companies by market capitaliza tion and of companies that are available in derivatives segment, belonging to di verse sectors. The investment strategy being that even if the markets go down, the fund has a p art of its portfolio hedged, which aims at minimizing the downside risk. The fun



d will not only use hedging techniques to limit the downside risk but will also try & capitalize on short selling opportunities to generate additional returns f or the investors. The fund will invest 75-100% in equity and equity related inst ruments and 0-25% in debt and money market securities. In a nut shell what this fund tries to do: • Generate long term returns by investing in a diversified portfolio of stocks. • Minimize the downside risk by being in a hedged position • Capitalize on generating additional returns by selective shorting.

ADVANTAGES OF MUTUAL FUNDS There are numerous benefits of investing in mutual funds and one of the key reas ons for its phenomenal success in the developed markets like US and UK is the ra nge of benefits they offer, which are unmatched by most other investment avenues . Diversification The nuclear weapon in your arsenal for your fight against Risk. It si mply means that you must spread your investment across different securities (sto cks, bonds, money market instruments, real estate, fixed deposits etc.) and diff erent sectors (auto, textile, information technology etc.). Tax Benefits Any income distributed after March 31, 2002 will be subject to tax in the assess ment of all Unit holders. However, as a measure of concession to Unit holders of open-ended equity-oriented funds, income distributions for the year ending Marc h 31, 2003, will be taxed at a concessional rate of 10.5%. Regulations Securities Exchange Board of India (“SEBI”), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the form ation, administration and management of mutual funds and also prescribe disclosu re and accounting requirements. Such a high level of regulation seeks to protect the interest of investors Affordability A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depend ing upon the investment objective of the scheme. Azn investor can buy in to a po rtfolio of equities, which would otherwise be extremely expensive. Features related mutual funds • Reliance was the first fund house to launch sector funds with flexibility to inv est in a range of 0% to 100% in either equity or debt instruments. • Mutual fund investments linked to an ATM/debit card a Reliance innovat ion India’s first long-short fund comes from Reliance Mutual Fund . • As at 31st May 2008, more than 6.6 million people had invested in Reliance Mutua l Fund;the investments comprised 16% of the country’s entire mutual fund.

RELIANCE INDUSTRIES LIMITED Reliance Group Holdings has grown from a small offic

e data-processing equipment firm in 1961 into a major insurance and financial-se rvices group in one generation under one chief. Reliance s insurance operations constitute the nation s 27th -largest property and casualty operation. The parent company also includes a dev elopment subsidiary in commercial real estate. Reliance s international consulti ng group contains several subsidiaries in energy, environment, and natural resou rces consulting. A financial arm invests in other businesses, primarily televisi on stations. Reliance Insurance started as the Fire Association of Philadelph ia in 1817, organized by 5 hose and 11 engine fire companies. It became the nati on s first association of volunteer fire departments. Business got a boost as a result of the Great Chicago Fire of 1871.The association soon developed a field of agents to write p olicies across the country. For the first two years, shareholders received divid ends twice a year of $5 a share, which increased gradually to $10 in 1876. In 1972, the Reliance insurance group divided its pool so that Reli ance Insurance Company and its subsidiaries handled most standard lines, while United Pacific Insurance Company handled the nonstandard and other operations. In 1977, the company moved into real estate, forming Continenta l Cities Corporation, which became Reliance Development Group, Inc. This divisio n handled all real estate operations of the parent company and other subsidiarie s. Reliance Capital Group, L.P. constituted the investment branch of the Reliance conglomerate. In December 1989, Reliance Capital sold its investment, Days Corporation, parent company of Days Inn of America, the world s third-largest hotel chain; it had b een purchased in 1984. Reliance Industries Limi ted. The Group s principal activity is to produce and distribute plastic and int ermediates, polyester filament yarn, fibre intermediates, polymer intermediates, crackers, chemicals, textiles, oil and gas. The refining segment includes produ ction and marketing operations of the Petroleum refinery. The petrochemicals seg ment includes production and marketing operations of petrochemical products name ly, High and Low density Polyethylene. Reliance Money is promoted by Reliance Capital; one of India s leading and faste st growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group. Thus, Reliance Money provides a comprehensive platform, offering an investment a venue for a wide range of asset classes. Its endeavor is to change the way India transacts in financial market and avails financial services. Reliance Money off ers a single window facility, enabling you to access amongst others, Equities, E quity and Commodity derivatives, Offshore Investments, IPO’s, Mutual Funds, Life I nsurance and General Insurance products. Advantages offered by Reliance money over other companies: • Cost Effective • Convenience • Security • Single Window for Multiple Products • 3 in 1 Integrated Access • Demat Account with Reliance Capital • Other Services like research, live news from Reuter and Dow Jones, etc.

"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."








Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late sevent ies and is regarded as an icon for enterprise in India. He epitomized the spirit dare to dream and learn to excel . The Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals.

RELIANCE MUTUAL FUND This groupdominates this key areain the financial sector..This mega business houses show that it has assetsunder management ofRs. 90,938 crore(US$ 22.73 billion) andan investor base of over6.6 million ( .Reliance’s mutual fundschemes are managed byReliance Capital AssetManagement Limi tedRCAM), a subsidiary of Reliance Capital Limited,which holds 93.37% ofthe paid-up capitalof RCAM. The company notchedup a healthy growth ofRs. 16,354 crore(US$ 4.09 billion)in assets under management in February2008 and helped pr opelthe total industry-wideAUM to Rs. 565,459 crore (US$ 141.36 billion)(Source: A sharp rise infixed maturity plans (FMPs) and collectio n ofRs. 7000 crore (US$ 1.75 billion) through newfund offers (NFOs) created this surge. In AUrankings, Reliance continues to be in thenumber one spot. India s Best Offering: Reliance Mutual Fund Investing has become global. Today, a lot of countries are waking up to the re ality that in order to gain financial growth, they must encourage their citizens to not only save but also invest. Mutual funds are fast becoming the mode of in vestment in the world.

The Anil Dhirubhai Ambani Group owns Reliance; they are the fastest growing inve stment company in India so far. To meet the erratic demand of the financial mark et, Reliance Mutual Fund designed a distinct portfolio that is sure to please po tential investors. Reliance Capital Asset Management Limited manages RMF. Vision And Mission Reliance Mutual Fund is so popular because it is investor focused. They show the ir dedication by continually dishing out innovative offerings and unparalleled s ervice initiatives. It is their goal to become respected globally for helping pe ople achieve their financial dreams through excellent organization governance an d customer care. Reliance Mutual fund wants a high performance environment that is geared at making investors happy. RMF aims to do business lawfully and without stepping on other people. They want to be able to create portfolios that will ensure the liquidity of the investmen t of people in India as well as abroad. Reliance Mutual Fund also wants to make sure that their shareholders realize reasonable profit, by deploying funds wisel y. Taking appropriate risks to reach the company s potential is also one of Reli ance Mutual Fund s objectives.



In India, a mutual fund Reliance is considered s number to 4.6 billion in the top 3 of India s alue.

company India s people. banking

called the Reliance Mutual Fund is making waves. best when it comes to mutual funds. Its investor Reliance Capital Asset Management Limited ranks companies and financial sector in terms of net v






Schemes To make their packages more attractive, Reliance Mutual Fund created proposals c alled The Equity/ Growth scheme, Debt/Income Scheme, and Sector Specific Scheme. i. Debt/Income Scheme, and Sector Specific Scheme.

The Equity/ Growth scheme give medium to long term capital increase. The major part of the investment is on equities and they have fairly high risks. The scheme gives the investors varying options like, capital augmentation or divide nd preference. The choices are not deadlocked because if you want you may change the options later on. Providing steady and regular income is one of the Debt/Income Scheme s primary goals. The Debt/Income scheme has in its portfolio government securitie s, corporate debentures fixed income securities, and bonds. returns on Sector Specific Scheme are dependent on the performance of the industry at which your money is invested upon. Compared to diversified funds this is a lot more risky a nd you will need to really give your time on observing the market. Although RMF is gaining good ground in the financial market, remember t hat they are a risk taking bunch. They give higher profit because they take a lo t of risks. So, if you are faint hearted, then Reliance Mutual Fund is not for y ou.

PRODUCTS : RELIANCE MONEY The products on offer from Reliance MutualFund fall into four main categories: e quity, debt,sector specific and ETF (Exchange Traded Fund).Each taps into a spec ific audience profile fulfilling their varying needs.Under the equity category, Reliance has118 SUPERBRANDS sixteen schemes with Reliance Growth Fundand Relianc e Vision Fund as its flagship schemes.Reliance Equity Opportunities Fund is a sc hemewhich operates in the multi-cap/multi-sectorsegment; Reliance Equity Fund is a long-shortfund, Reliance Quant Plus Fund is a quant fund.Reliance offers inve stments in banking, power,media, entertainment and pharmaceuticals;Reliance Tax Saver Fund and Reliance Equity-Linked Savings Fund – Series 1 are tax saving schem es; an NRI-dedicated equity scheme is tailored for non-resident Indians. RelianceRegular Savings Fund is an asset-allo cation fund with three options.Under the debt and liquid categories, Reliancehas liquid funds, liquid plus funds, income funds,an NRI-dedicated debt fund, gilt funds, fixedmaturity plans and an interval fund.In the hybrid category, Reliance Monthlyincome Plan is a popular option Reliance understands that investments in mutual fundshare a functio n of knowledge dissemination and awareness of products amongst potential investo rs. In building its ownbase of assets under management it will necessarily have


to carry the entire mutual fund industry.Towards this end Reliance has launched a t wo-pronged initiative.In th e first pincer it has created aformidable network of 26,000 distributors includi ng some of thebiggest names in the banking sector.This who’s who of the financial industry comprises such giants asCitibank, Standard Chartered, HSBC,ICICI, AXIS, Bank of Baroda, Central Bank of India, Allahabad Bank andfund houses such as JM , DSP Merrill Lynch and Karvy in addition to a massive infrastructure of direct financial investment officers. Thisprodigious effort is supplemented by thebrand s’ captive network of 120 branch offices and 30 financial centres. In the second prong, Reliance has created a series of informationpacked presentations which help dispel misinformationGroup.This mega business house dominates this key area in the financial sector.Figures for March 2008 show that it has emerged as the top Indian mutual fund with average assets under management of Rs. 90,938 crore (US$ 22.73 billion) and an investor base o f over 6.6 million ( Reliance’s mutual fund schemes are managed by Re lianceCapitalAssetManagementLimited (RCAM), a subsidiary of Reliance Capital Lim ited,which holds 93.37% of the paid-up capitalof RCAM.The company notchedup a he althy growth ofRs. 16,354 crore (US$ 4.09billion)inassetsunder management in Feb ruary2008 and helped propelthe total industry-wideAUM to Rs. 565,459 crore(US$ 1 41.36 billion) (Source: A sharp rise infixed maturity pla ns (FMPs)andcollection of Rs. 7000 crore (US$ 1.75 billion) through new fund off ers (NFOs) created this surge. InAUMrankings, Reliance continues to be in thenum ber one spot. Reliance was the first fund house to launch sector funds with flexibility to inv est in a range of 0% to 100% in either equity or debt instruments Mutual fund in vestments linked to anATM/debit card are a Reliance innovationIndia’s first long-s hort fund comes from Reliance Mutual Fund As at 31st May 2008, more than 6.6 mi llion people had invested in Reliance Mutual Fund;the investments comprised 16% of the country’s entire mutual fund asset base. Achievements In two successive joint surveys by The Economic Times’ Brand Equity and ACNielsen, Reliance was recognised as India’s Most Trusted Mutual Fund.Thecompanyalsowalked away with seven other scheme prizes – five of them being outright winners – in the Gulf 2007 Lipper Awards.These included the Fund House of the Year by Lipper GCC as well asICRA Online and the Most Improved FundHouse by Asia Asset Management. It also received the NDTV Business Leadership Award 2007 in the mutual fund cate gory and runners’ up recognition as the Best Fund House in theOutlook Money-NDTV P rofit Awards. In addition,the company received thecoveted CNBC Web18 Genius of t he Web distinction for the Best Mutual Fund Website inthe country. RCAM was awar ded the India Onshore Fund House 2008 instituted by theAsian Investor magazine.T he company also won the India Equities award in the 5-yearPerformance category.

COMPARATIVE STUDY OF MUTUAL FUND Major competitor of Reliance Money

Company Profile of HDFC HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts. HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of h andling physical documents that get mutilated or lost in transit. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Features & Benefits As opposed to the earlier form of dealing in physical certificates with delays i n transaction, holding and trading in Demat form has the following benefits: • ons. • • • • • • Settlement of Securities traded on the exchanges as well as off market transacti

Shorter settlements thereby enhancing liquidity. Pledging of Securities. Electronic credit in public issue. Auto Credit of Rights / Bonus / Public Issues / Dividend credit through ECS. Auto Credit of Public Issue refunds to the bank account. No stamp duty on transfer of securities held in demat form. No concept of Market Lots. Change of address, Signature, Dividend Mandate, registration of power of attorney, transmission etc. can be effected across companies held in demat form by a single instruction to the Depository Participant (DP).

Secured & easy transaction processing HDFC Bank Ltd provides convenient facility called SPEED-e (Internet based tran saction) whereby account holder can submit delivery instructions electronically through SPEED-e website ( SPEED-e offers secured means of transaction processing eliminating preparation of instruction slips and subm ission of the same across the counter to the depository participant. The IDEAS facility helps in viewing the current transactions and balances (holdings) of D emat account on Internet on real time basis.

Company Profile of ICICI ICICIDirect (or is stock trading company of ICICI Bank. Along w ith stock trading and trading in derivatives in BSE and NSE, it also provides fa cility to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSE an d NSE ICICIDirect offers 3 different online trading platforms to its customers 1. Investment Account Along with stock trading and IPO investing in BSE and NSE, Wise Investment accou nt also provide options to invest in Mutual Funds and Bonds online. Online Mutual funds investment allows investor to invest on-line in around 19 Mu tual Fund companies. ICICI Direct offers various options while investing in Mutu al Funds like Purchase Mutual Fund, Redemption and switch between different sche mes, Systematic Investment plans, Systematic withdrawal plan and transferring ex isting Mutual Funds in to electronic mode. This account also provides facility t





o invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. website is the primary tool to invest in Mutual Funds, IPOs, Bon ds and stock trading.

Reliance Money Tax Saving funds Reliance Money: Tax-saving funds (due to their equity-oriented nature) are capab le of clocking far superior returns their assured return counterparts like Natio nal Savings Certificate (NSC) and Public Provident Fund (PPF). However investors must appreciate that the risk profile of tax-saving funds tends to be proportio nately higher. Reliance Tax Saver (ELSS) Fund (RTSF) is the latest entrant in the tax-sav ing funds segment. Flagship diversified equity funds (Reliance Growth Fund and R eliance Equity Fund) from Reliance Mutual Fund have emerged as top performers in their segment across time horizons. However investors should note that these fu nds are managed aggressively; also they have displayed an opportunistic streak b y moving fluidly across market segments (large caps, mid caps) to clock superior growth. RTSF is likely to be a similar (high risk - high return) investment pro position within the tax-saving funds segment. SYSTEM INVESTMENT PLAN SIP is a way of investing in Mutual Funds. It is designed for those investors who are willing to invest regularly rather than making a lump sum inve stment. It is just like a recurring deposit with the post office or bank where w e deposit some amount every month. The difference here is that the amount is inv ested in a mutual fund. Mutual Fund makes investment according to their objectiv e .They collect fund from investor and invests it. Every fund has an objective a nd pattern of investing. There are various kinds of mutual funds. There are equi ty funds and debt funds. Further equity funds can be divided into equity diversi fied mutual fund where funds are invested in shares of different companies , sec toral funds where investment is made in shares of some particular sector like FM CG, IT, Auto, Oil & Gas, Banking etc. Every fund has a NAV (net asset value) whi ch is the value per unit. It is calculated as the total asset is divided by the number of outstanding units. As the value of asset changes, nav also changes. The best way to invest in stock market is mutual fund through Systematic Investm ent Plan. But to get the benefit of an SIP, a long term horizon is must.


To give a brief idea about the benefits available from mutual Fund investment. To give an idea of the types of schemes available. Explore the recent developments in the mutual funds in To give an idea about the regulations of mutual funds. To analyze reliance mutual fund strategy against its competitor. India

RESEARCH METHODOLOGY Research as a care full investigation or enquiry specially through search for a new facts in any branch of knowledge” Research is an academic activity and such as the term should be used in technic al sense.The manipulation of things , concepts or symbols for the purpose of ge neralizing to extend ,correct or verify knowledge ,whether that knowledge thro ugh objective. TYPES OF RESEARCH ANALYTICAL RESERCH In this project work, analytical research is used. In this project has to use fa cts or information .Already used available ,and analyze these to make a critica l evolution of the material.

METHODS OF DATA COLLECTION In this project work primary and secondary data sources of data has been used. Primary data: Primary data collect through observation, or through direct commun ication or doing experiments . Secondary data: Secondary data means already available through books ,journals , magazines ,newspaper.


For the proper analysis of data Quantitative Technique such as percentage metho d was used.

DATA ANALYSIS AND INTERPRETATION Q.1 Which banking mutual fund do you prefer for mutual Fund ? Co mpany Name Persentages of respondents Reliance Money 25 HDFC 10 ICICI 15

INTERPRETATION: 50% of respondent have Reliance Money, 30% of respondent says th at other%.


Which banking mutual fund offer you good investment plan? Percentage of respondent 22

Company Name Reliance HDFC 21 ICICI 7

INTERPRETATION: 44% respondent for Reliance,32 %forHdfc,14% for ICICI Q.3 Which banking mutul fund offer a lot of tax saving? Company Name Percentage of respondent Reliance 20 HDFC 15 ICICI 15

INTERPRETATION: 40% respondent for Reliance,30 %forHdfc,30% for ICICI

Q.4 Which banking mutual fund offer you a large number of product & services? Company Name Percentage of respondent Reliance 18 HDFC 16 ICICI 16

INTERPRETATION: 36% respondent for Reliance,32%forHdfc,32% for ICICI

Q.5 Which banking mutual fund offer you a good e-mail facility ? Company Name Percentage of respondent Reliance 22 HDFC 15 ICICI 13

INTERPRETATION: 44% respondent for Reliance,30%forHdfc,26% for ICICI

Represent by pie chart

OBSERVATION 50% of respondent have Reliance Money, 30% of respondent says that other%. 44% respondent for Reliance, 32 %forHdfc,14% for ICICI. 40% respondent for Reliance, 30 %forHdfc,30% for ICICI. 36% respondent for Reliance, 32%forHdfc,32% for ICICI. 44% respondent for Reliance, 30%forHdfc,26% for ICICI.

FINDINGS AND SUGGESTION In Equity Schemes we have taken Reliance Vison Fund and Reliance growth Fund . Both schemes are open ended but Reliance Growth fund is more valuable for Relian ce Mutual Fund than reliance vision Fund. In Dedt scheme we have taken Reliance money Manager Fund and Reliance Liquidty Fund .In it boths schemes are open ended but reliance money manager is more bene ficial for reliance mutual fund . In sector specific scheme we have taken Reliance media and entertainment fund an d Reliance Pharma fund scheme both is more efficient for Reliance Mutual Fund. Above all the schemes of Reliance Mutual Fund Debt schemes are best schemes for Mutual Fund . There is a Good investment plan and saving scheme in reliance Mutual Fund. SUGGESTION • Reliance Money have to add some extra features in it with aggressive marketing p romotional strategy. • Advertisement on television is the main source of attraction so the company must advertise its products heavily. • Product must be improved . • There should be provision of complain suggestion boxes at each branch.

QUESTIONNAIR Q.1 Which banking mutual fund do you prefer for mutual Fund ? • Reliance Money • HDFC • ICICI Q.2 • • • Which banking mutual fund offer you good investment plan? Reliance Money HDFC ICICI

Q.3 Which banking mutul fund offer a lot of tax saving? • Reliance Money • HDFC • ICICI Q.4 • • • Which banking mutual fund offer you a large number of product & services? Reliance Money HDFC ICICI

Q.5 Which banking mutual fund offer you a good e-mail facility ? • Reliance Money • HDFC • ICICI Limitations

• The time constraint was one of the major problems. • The study is limited to the different schemes available under the mutual funds s elected. • The study is limited to selected mutual fund schemes.

• The lack of information sources for the analysis part.

CONCLUSION Mutual Fund investment is better than other raising fund . Reliance Mutual Fund have good returns in investment . A good brand is always welcomed over here people are more aware and conscious fo r the brand so they go for they are ready to spend some extra bucks for the qual ity . At last all con be concluded by that Reliance Money is still growing industry in India and is still exploring its potential and prospects in here.


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