SUGGESTING INVESTMENT PLANS TO SMEs

WITH RELIANCE MUTUAL FUND

Submitted by

Rajarajan. p
OBJECTIVE:
• Cash inflows and outflows of SMEs.
• Suggesting investment plans with RMF.
• Creating awareness about mutual funds.
NEED FOR THE STUDY:
• Investment polices of SMEs.
• Increase potential growth of SMEs.
• Perception of SMEs about mutual funds.
SCOPE OF STUDY:
• Based on cash flows suggesting plans.
• Nature of investments are either in dept
or equity.
• Company’s existence, business, clientele.
• Offers offered by their banker.
FINDINGS:
• Moderate knowledge about mutual funds.
• Maintaining their funds in current a/c and
bank deposits.
• Investing their funds in long term
instruments.
• SMEs except a return of about 6-10%.
• Interested to invest in debt instruments.
• Ready to invest in mutual funds if guided
properly.
• Investment plans are made by accountant.
• Mutual fund investments are based upon
brand name and portfolio composition.
• Very few companies having bad opinion
about mutual funds.
• Companies are interested in liquid
investments.
Suggestions:
• Moderate return with minimum risk.
• Funds in current account and bank
deposits should be targeted.
• Investing in long term funds should be
suggested to invest in liquid plus funds.
• 6-10% return can only offered by liquid
plus funds.
• Most of the companies where looking for
quality of portfolio than returns.
• Debt being at larger composition are
contradicting with mutual funds.
• There is a wider scope for mutual funds in
SMEs segments.
• Analyze whether the companies are guided
properly about mutual funds.
• RMF has a wider scope in SMEs segments
because of its brand name and portfolio
composition.
LIMITATIONS:
• Time constraint.
• Limited to few schemes in RMF.
• Lack of information sources about the company.
• The client met posses only low cadre in most of
the companies.
• Every plan posses some two to three
restrictions.
• No plans for companies maintaining overdraft
account.
CONCLUSION:
• Mutual fund investments are better than other
fund raising options.
• RMF which posses best portfolio compositions
has providing very good return on investments.
• Most of the SMEs are unaware about the various
new schemes introduced in the market.
• companies which is having very bad opinion
about mutual funds can be changed by RMF.
• SMEs can rely on RMF for issuing low risk and
high security papers for improving their
investments.