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CHAPTER -1 Introduction to Mutual funds

WHAT IS MUTUAL FUND? 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 are shared by its unit holders in proportion to the number of units owned by them A MUTUAL fund is a pool of money, collected from investor, which is then invested by the professional managers according to certain investment objective .

The Mutual Fund industry in India started in 1963 with the formation of Unit Trust of India.

In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. As far as Mutual funds are concerned, SEBI formulates policies and regulates the mutual funds to protect the interest of the investors.

A mutual fund is created when investor put their money together. It is therefore a pool of the investors fund. The most important characteristic of a mutual fund is that the contribution and the beneficiaries of the fund are the same class of people, namely the investor. The term mutual fund means that investor contribute to the pool, and also benefit from the pool. There are no other claimants to the fund. The fund held Mutually by investors is the mutual fund.

How Does Mutual funds Work:

The Above diagram shows the Working of all mutual funds: INVESTORS (All those who want to save) deposit their money with the Mutual fund Company. FUND MANAGERS (Professionals in financial sector, appointed by the Mutual fund Company) invest the money collected from all the investors around the world in the listed securities of different corporates after analyzing the effect of market changes on the performance of different companies. RETURNS the profit earned by the different companies in which fund managers has invested the funds is distributed among the investors (in proportion to the amount invested by them) in the form of Returns.

Terminologies used in Mutual funds

Some Basic terminologies used in mutual funds are: Net Asset Value (NAV): Net Asset Value is the market value of the assets of the scheme minus its liabilities divided by the units outstanding. Simply put, if the fund is dissolved or liquidated, by selling off all the assets in the fund, this is the amount that the unitholder would collectively own. The NAV is used to calculate the value of your investments and to determine the price of per unit for buying or selling. i.e. NAV= Portfolio value liabilities / No of Shares outstanding Portfolio: Combined holdings of many kinds of financial securities like shares, debentures and bonds. The objective is risk diversification and maximization of gain of group of assets. Corpus: The total amount of money that a fund has at any point of time. Unit: A Unit Represents an investors share in the assets of the scheme s/he has invested. Load: A load is a one-time sales charge paid by an investor while buying or selling units of a scheme. Load can be charged by two ways:

Entry Load: An entry load is an additional cost that an investor pays at the point of entry. Example: your proposed investment is Rs.10, 000/-. Also assume that the current NAV of the fund is Rs.12.00 and that the entry load is Rs.0.50. Then you will receive 10000/12.50 = 800 units. Exit Load: An exit load is levy that an investor pays at the point of exit. This is levied to dissuade investors from exiting the fund. Example: Assume that the current NAV of the fund is Rs.12.00 and that the exit load is Rs.0.50. Now if you sell 800 units then you stand to receive 800X11.5 = Rs. 9200.

Expense ratio:
Expense Ratio is defined as the ratio of total expenses to the net assets of the fund. It is the annual percentage of the funds assets that is paid out in expenses. Expenses include management fees and all the fees associated with the funds daily operations. The ratio is listed in a funds offer document. The expense allowed for a fund is a percentage of the weekly average net assets outstanding:

Equity Schemes upto 2.5% Debt Schemes up to 2.25%

TYPES OF MUTUAL FUND SCHEMES

Mutual fund schemes can be classified as follows:

By Structure
Open-ended schemes Close-ended schemes

By Investment Objective
Growth schemes Income schemes Balance schemes Money Market schemes By Structure Open Ended Schemes You can invest or redeem in these schemes at any time Closed Ended Schemes You can invest during the initial issue period (NFONew Fund Offer) and your money is locked in for a stipulated period (ranging from 3 months to 5 years or before the completion with CDSC- Contingent deferred Sales Charge) By Investment Objective Growth Schemes/Equity Schemes Invest in share of companies. Have the potential to deliver better returns over the long term as compared to other mutual fund schemes.

Types of Growth funds

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Diversified funds Such funds have the mandate to invest in the entire universe of stocks. Although by definition, such funds are meant to have a diversified portfolio (spread across industries and companies), the stock selection is entirely the prerogative of the fund manager.

This discretionary power in the hands of the fund manager can work both ways for an equity fund. On the one hand, astute stock picking by a fund manager can enable the fund to deliver market-beating returns; on the other hand, if the fund managers picks languish, the returns will be far lower. The crux of the matter is that your returns from a diversified fund depend a lot on the fund managers capabilities to make the right investment decisions. On your part, watch out for the extent of diversification prescribed and practiced by your fund manager. Understand that a portfolio concentrated in a few sectors or companies is a high risk, high return proposition. If you dont want to take on a high degree of risk, stick to funds that are diversified not just in name but also in appearance.
II.

Sector funds The riskiest among equity funds, sector funds invest only in stocks of a specific industry, say IT or FMCG. A sector funds NAV will zoom if the sector performs well; however, if the sector languishes, the schemes NAV too will stay depressed.

Barring a few defensive, evergreen sectors like FMCG and IT, most other industries alternate between periods of strong growth and bouts of slowdowns. The way to make money from sector funds is to catch these cyclesget in when the sector is poised for an upswing and exit before it slips back. Therefore, unless you understand a sector well enough to make such calls, and get them right, avoid sector funds

III.

Index funds These funds track a key stock market index, like the BSE (Bombay Stock Exchange) Sensex (Sen- Sensitive & sex- Index) or the NSE (National Stock Exchange) S&P CNX Nifty (N-National, I-Index & FTY- fifty). Hence, their portfolio mirrors the index they track, both in terms of composition and the individual stock weightages. For instance, an index fund that tracks the Sensex will invest only in the Sensex stocks. The idea is to replicate the performance of the benchmarked index to near accuracy. Index funds dont need expertise of fund managers, as there is no stock selection involved.
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Investing through index funds is a passive investment strategy, as a funds performance will invariably mimic the index concerned, barring a minor "tracking error". Usually, theres a difference between the total returns given by a stock index and those given by index funds benchmarked to it. Termed as tracking error, it arises because the index fund charges management fees, marketing expenses and transaction costs (impact cost and brokerage) to its unitholders. So, if the Sensex appreciates 10 per cent during a particular period while an index fund mirroring the Sensex rises 9 per cent, the fund is said to have a tracking error of 1 per cent. To illustrate with an example, assume you invested Rs 1,00,000 in an index fund based on the Sensex on 1 April 1978, when the index was launched (base: 100). In 14 August 2006, when the Sensex was at 11312.99, your investment would be worth Rs 11312990, which works out to an annualised return of 18.2 per cent. A tracking error of 1 per cent would bring down your annualised return to 17.2 per cent. Obviously, the lower the tracking error, the better the index fund.
IV.

Tax Saving funds Also known as ELSS or equity-linked savings schemes, these funds offer benefits under Section 80-C. Contribution out of your taxable income, will be deduct from your taxable income subject to overall limit of Rs.1,00,000. (ONE LAKH)The only drawback to ELSS is that you are locked into the scheme for three years.

In terms of investment profile, tax-saving funds are like diversified funds. The one difference is that because of the three year lock-in clause, tax-saving funds get more time to reap the benefits from their stock picks, unlike plain diversified funds, whose portfolios sometimes tend to get dictated by redemption compulsions. Income Schemes/Debt Schemes Such funds attempt to generate a steady income while preserving investors capital. Therefore, they invest exclusively in fixed-income instruments securities like bonds, debentures, Government of India securities, and money market instruments such as certificates of deposit (CD), commercial paper (CP), Treasury Bills (TB) and call money. There are basically three types of debt funds. Income funds By definition, such funds can invest in the entire gamut of debt instruments. Most income funds park a major part of their corpus in corporate bonds and debentures, as the returns there are the higher than those available on government-backed paper. But there is also the risk of default (depending upon

the credit quality of paper i.e. AAA, AA, A, BBB, BB, B, C & D)a company could fail to service its debt obligations. Gilt funds/G-Sec funds They invest only in government securities and T-bills instruments on which repayment of principal and periodic payment of interest is assured by the government. So, unlike income funds, they dont face the spectre of default on their investments. This element of safety is why, in normal market conditions, gilt funds tend to give marginally lower returns than income funds. Liquid funds/Floater schemes They invest in money market instruments (duration of up to one year) such as treasury bills, call money, CPs and CDs. Among debt funds, liquid funds are the least volatile. They are ideal for investors seeking low-risk investment avenues to park their short-term surpluses. Balanced/Hybrid Schemes Lastly, there are balanced funds, whose investment portfolio includes both debt and equity. As a result, on the risk ladder, they fall somewhere between equity and debt funds. Balanced funds are the ideal

MUTUAL FUND ITS BENEFITS TO INVESTORS

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The Benefits are plenty, and some of them are as follow: Professional management: Mutual funds essentially collect money from many investors, which are then invested by professional managers, these Fund Managers, who are highly qualified in the area of Investment and have a thorough knowledge of the capital market, manage mutual funds. Diversification and Lowered Risks: Since a mutual fund is a trust that pools the savings of a number of investors sharing a common financial goal, the associated risks are greatly reduced. This is also because a fund will invest your money in different types of instruments like shares and bonds. Hence, loss in one sphere will not greatly affect your overall investment status. Low Costs: When compared to direct investments in the capital market, mutual funds cost less. This is due to savings in brokerage costs; demat costs, depository costs, etc. Liquidity: Investments in mutual funds are quite liquid and hence can be redeemed at the Net Assets Value (NAV)-related price on any working day. Transparency: All that you invest in a scheme is made known to you and you are periodically informed about all the updates and changes taking place. Flexibility: Mutual funds offer flexibility in their options and schemes to match individual needs. Also, with features like regular withdrawals plans and systematic investment plans, you can withdraw or invest funds according to your needs and convenience.

Choice of schemes:
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Mutual funds offer a vast variety of well-designed schemes and options that you can choose from depending on your risk appetite. Tax benefits: Mutual Funds offer a host of Tax benefits. Dividend income received from investing in equity and debt schemes of a mutual fund is tax free in the hands of the investor. Regulations: Mutual funds are regulated by SEBI and function within the provisions and regulations that protect the interests of investors. SEBI acts as a watchdog to ensure fair market practices.

Buying Mutual Funds

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How do I buy Mutual Funds? When a fund is launched for the first time, you can buy its units at face value plus applicable load, if any, through the New Fund Offer (NFO), which is for a stipulated period of time. After the NFO period, the fund is not available for buying/selling till it reopens, generally, within a month. Once the scheme reopens for regular trading you can buy units at the prevailing NAV by filling afresh application form. So should I invest in NFOs or existing schemes? It should not matter when you invest as long as the funds objective matches yours. In an existing scheme you have the advantage of knowing the funds performance. Should I time my purchase of Mutual Funds? Although, the principal rule is to buy low and sell high, do not try to time the market. However, if you have to time your buying, opt for triggers. A trigger sets off your buying when the NAV comes down to a level specified by you. Are there any final checks I need to do before I buy a fund? Check whether the funds objectives match yours. Go through the fact sheet to check its performance. Also, check expense ratios and the load structures. High expense ratio and load structures eat away your returns. How long should I stay Invested? Mutual funds cater to investors with different horizons. Based on your need you can determine the time for which you want to stay invested. Generally, investments over a longer period of time may reap good returns.

Where do I go to buy a mutual fund scheme? You can approach the mutual fund or any of its investor service centers. Alternatively, you can also route your investments through intermediaries (agents, banks, certified financial planners and share markets for close-ended schemes). Nowadays, you can also transact on the Internet.

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What are the different Plans? The different Plans available are: Growth- where the income generated by way of capital appreciation stays in the fund and is reflected by rise in NAV. Bonus- Where the unit holder receives additional units as bonus when the value of the fund appreciates. Dividend Payout- Where the capital appreciation is passed on to the unit holder by way of Dividends. Dividend Reinvestment- Where the dividends are reinvested into the fund by buying additional units on the request of unit holders. In addition, there are host of investor-friendly features that you can avail of: Systematic Withdrawal plan (SWP) SWP enables you to withdraw a fixed amount according to a predetermined frequency that you specify to the fund. Systematic Transfer Plan (STP) An STP allows you to transfer a fixed amount of money from one scheme to the other. Switch Between Schemes- a Switch lets you exit from one scheme and enter into another scheme without filling in the redemption request and issuing a cheque. All you have to do is fill a form informing the fund about which scheme you wish to redeem and which other scheme you wish to buy. Systematic Investment Plan (SIP)- an SIP lets you invest in parts instead of single lump sum amount. All you have to do is issue post-dated cheques to the fund, which will be presented to your bank on the specified dates. Nowadays, SIPs come with another convenient feature, an auto debit facility. The Auto Debit facility does away with post-dated cheques. The fund debits the money directly from your bank account. How do I calculate the returns on my mutual funds investments?

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Lets assume that you had purchased mutual fund units worth Rs 10,000 at an NAV of Rs 10 per unit on 1 February 2005. The entry load on the mutual funds was 2%. On 5 June 2005, you sold all the units at an NAV of Rs 20. The exit load was 0.5%. Then Your Growth/Return is calculated as under: 1. Calculation of Applicable NAV and no. Of units purchased: a) Amount of Investment = Rs 10,000 b) Market NAV = Rs 10 c) Entry Load = 2% = 2% of Rs 10 = Rs 0.20 d) Applicable NAV (purchase price) = (b) + (c) = Rs 10.20 e) Actual Units Purchased = (a) / (d) = 980.392 units 2. Calculation of NAV at the time of Sale a) NAV at the time of Sale = Rs 20 b) Exit Load = 0.5% of Rs 20 or Rs 0.10 c) Applicable NAV = (a) (b) = Rs 19.90 3. Growth/Returns on Mutual Funds a) Applicable NAV at the time of Redemption = Rs 19.90 b) Applicable NAV at the time of Purchase = Rs 10.20 c) Growth/Return on Investment = {(a) (b)/(b) *100} = 95.30% = Rs 9,530 (Absolute returns in Rupees)

Selling Mutual Funds:

When Do I sell my Mutual Fund Investments?

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When the investment objective is met, or when you wish to rebalance your asset allocation. What this essentially means is that if you had allocated say 50% of your total investments to a debt fund and the other 50% to an equity fund. Now, because of the change in NAV, the proportion of Investments in each of these funds is different. In order to rebalance this, you need to sell some and buy some units accordingly. Alternately, you should sell your investments if the fund is consistently under performing, or if it is not adhering to the investment objective. So, can I sell part of my investments? Of course, you can sell in parts provided you keep the bare minimum prescribed by the fund in order to continue your account with the same folio (a unique number to identify your holdings) allotted to you. Mutual funds also offer some value-added services Triggers: If you do not have the time to track your investments, you can set a trigger. Informing the fund beforehand that you wish to withdraw if your investments reach a certain level is a trigger. This way, you dont have to worry about tracking the markets or your investments regularly. A trigger can be set on many parameters, for example: Time: Redeem my units on____/____/____. Value: Redeem when my investments reach the value of Rs_______/Benchmark: Redeem my units when the Sensex reaches__________/Alerts: Unlike a trigger, an alert only intimates you of a certain event; say the value of your investments reaching a certain level. The alerts can be set on parameters similar to that used for triggers.

Investor Rights

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How do I know where the mutual fund has invested my money? Mutual funds are required to disclose full portfolios of all of their schemes on a half-yearly basis, which are normally published in newspapers. Some mutual funds send the portfolios to their unit holders. This disclosure helps an investor in understanding the manner in which his / her investment is chanellelled by the fund. It shows investments made by the scheme in each security, i.e., equity, debentures, money market instruments, government securities, etc. and their quantity, market value and % to NAV. These portfolio statements are also required to disclose illiquid securities in the portfolio, investment made in rated and unrated debt securities, non performing assets (NPAs), etc. I dont want to sound paranoid, but what happens to my money if the mutual fund scheme winds up? In case of winding up of a scheme, unit holders receive a report from the fund giving all the necessary details. Also, the mutual funds pay a sum to the unit holders, based on the prevailing NAV after adjustment of expenses. Rights of Unitholders: A unit holder in a mutual fund scheme governed by the SEBI (Mutual Funds) Regulations is entitled to: 1. Receive unit certificates or statements of accounts confirming the title within 6 weeks from the date of closure of the subscription or within 6 weeks from the date that the request for a unit certificate is received by a mutual fund. 2. Receive information about the investment policies, investment objectives, financial position and general affairs of the scheme. 3. Receive dividend within 30 days of its declaration and receive the redemption proceeds within 10 working days from the date of redemption. 4. Inspect the documents as specified in the schemes offer documents.

Dos and Donts 1. Mutual Funds are subject to market risk. The first rule before investing is to read the offer document carefully before actally investment.

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2. Invest in your scheme after carefully deciding your investment objective and risk appetite. Dont invest just because someone is offering you a commission or because the name of the scheme sounds good. 3. Ask for the copy of the offer document before investing. Be sure to receive an account statement for the money youve invested. 4. Past performance of a scheme does not indicate its future performance. Also, be aware that the NAV keeps changing everyday, but you must keep track of it nevertheless. 5. Dont deal with a company/broker/agent that has not been registered with the association of Mutual funds in India (AMFI). Be aware of dishonest dealers who will try to lure you by promising very high returns. 6. Dont hesitate to approach the concerned people or authorities if you suspect a problem. 7. Dont always follow the crowd. The most important rule is to diversify properly. You cant scatter your funds everywhere and expect stability.

CHAPTER -2 History of Indian Mutual fund industry

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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 history of mutual funds in India can be broadly divided into four distinct phases First Phase 1964-87 An Act of Parliament established Unit Trust of India (UTI) on 1963. 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. 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. LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. 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

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and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. 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. 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. As at the end of July, 2006, there were 30 funds, which manage assets of Rs.2, 88,680 crores.
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The graph indicates the growth of assets over the years.

GROWTH IN ASSETS UNDER MANAGEMENT

CHAPTER -3 Objectives and Research Methodology

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OBJECTIVES OF STUDY
To know about the Mutual Funds (sector) and what are the future growth in mutual funds in India . To see the factor which are important for investor to invest . Whether or not they are right for investors. It's benefits for its agents To know about the strategies use by the Reliance Mutual Fund to attract the investors. To examine the various types of funds use by Reliance Mutual Fund and what is the importance of each fund in the eyes of investor. Competition between various institution are vary high in this sector so perception regarding this must be known

RESEARCH METHODOLOGY
DATA COLLECTION: PRIMARY DATA It is collected through interview and questionnaire method. SECONDARY DATA It is collected through Broachers of the company, company websites and booklets of company.

CHAPTER -4 Scope and Limitations of Study

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SCOPE OF THE PROJECT

Scope of the project is quite wide.

Geographical area covered -- Jalandhar city. categorized as Sector Equity Schemes, Diversified Equity Schemes, Hybrid Schemes, Income Schemes, Money Market Schemes.

Franklin Templeton deals in twenty seven type of funds which are

LIMITATION OF THE STUDY

Although while collecting data full precaution are taken to get the correct data, but the collected data may have same biasness in it. The biases in the data may be due to following reason: Due to limitation of time, sample size was limited. The area covered was limited thus result may vary. Some of the respondents does not replied properly and given false details. Some of the respondents were not interested in filling the questionnaires due to lack of time. Some of the respondents hide the true information.

CHAPTER 5 Company profile

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Overview The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector business houses on all major financial parameters, with a market capitalization of Rs 100,000 crore (US$ 22 billion), net assets in excess of Rs 31,500 crore (US$ 7 billion), and net worth to the tune of Rs 27,500 crore (US$ 6 billion) Across different companies, the group has a customer base of over 50 million, the largest in India, and a shareholder base of over 8 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 4,500 towns and 300,000 villages in India, and 5 continents across the world. The interests of the Group range from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.

Structure

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Our Founder

About Shri Dhirubhai Ambani

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Few Men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned

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money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families.

Sh. Dhirubhai Ambanis Stamp

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On 28th December 2002, Ministry of Communications, Government of India released a commemorative postage stamp on industrialist and founder of the Reliance Group of Industries, Shri Dhirubhai Ambani in Mumbai. Issued by the Department of Posts, the stamp is in the denomination of Rs. 5.

Chairmans Profile

About Shri Anil Ambani

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Regarded as one of the foremost corporate leaders of contemporary India, Anil Dhirubhai Ambani is the Chairman of all listed Group companies, namely: Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), Indias largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the companys management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the countrys first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

He is a member of:

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Wharton Board of Overseers, The Wharton School, USA Central Advisory Committee, Central Electricity Regulatory Commission Board of Governors, Indian Institute of Management, Ahmedabad Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of Indias Parliament a position he chose to resign voluntarily on March 25, 2006.

Awards and Achievements

Conferred the CEO of the Year 2004 in the Platts Global Energy Awards

Rated as one of Indias Most Admired CEOs for the sixth consecutive year in the Business Barons TNS Mode opinion poll, 2004

Conferred The Entrepreneur of the Decade Award by the Bombay Management Association, October 2002

Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001

Selected by Asia week magazine for its list of Leaders of the Millennium in Business and Finance and was introduced as the only new hero in Business and Finance from India, June 1999

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Sponsors
Reliance Capital Limited: Registered Office: Reliance Capital Ltd, Village Meghpar, Padana Taluka Lalpur, District Jamnagar - 361280 - Gujarat. Corporate Office: Reliance Capital Ltd. Old ICI Godown, Fosbery Road, Off Reay Road Station (East), Mumbai - 400033. Reliance Capital Asset Management Ltd. is a wholly owned subsidiary of Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management Ltd is held by Reliance Capital Ltd. Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Ltd (RCL). RCL has been promoted by Reliance Industries Ltd., one of India's largest private sector enterprise. Reliance Industries Ltd. has a net worth of Rs.40, 483 crores as on March 31, 2005 and currently has a large family of shareholders. Reliance Capital Limited is a Non Banking Finance Company engaged in leasing, investment and other fund based activities. The net worth of Reliance Capital Ltd. is Rs. 1,437.92 crores as on March 31, 2005. Given below is a summary of Reliance Capital Ltd.'s financials:

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Particulars (Rs.in crores) Total Income Profit Before Tax Profit After Tax Reserves & Surplus Net Worth Earnings per Share (Rs.) Book Value per Share (Rs.) Dividend (%) Paid up Equity Capital

2005-06 652.02 550.61 537.61 3849.58 4122.46 29.74 (Basic + Diluted) 112.95 30% 223.4

2004-05 295.69 111.21 105.81 1310.08 1437.92 8.31 (Basic + Diluted) 112.95 30% 127.84

2003-04 356.79 105.79 105.79 1271.84 1399.81 8.31 (Basic + Diluted) 109.96 29% 127.84

2002-03 458.78 102.63 102.63 1208.5 1336.33 8.06 (Basic + Diluted) 104.54 29% 127.83

Reliance Capital Ltd. has contributed Rupees One Lac as the initial contribution to the corpus for the setting up of the Mutual Fund. Reliance Capital Ltd. is responsible for discharging its functions and responsibilities towards the Fund in accordance with the Securities and Exchange Board of India (SEBI) Regulations. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the contribution of an amount of Rupees one Lac made by them towards the initial corpus for setting up the Fund and such other accretions and additions to the corpus.

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The AMC
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 vides 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. Reliance Mutual Fund has launched twenty five Schemes till date, namely: Reliance Vision Fund (September 1995), Reliance Growth Fund (September 1995) Reliance Income Fund (December 1997), Reliance Liquid Fund (March 1998), Reliance Medium Term Fund (August 2000), Reliance Short Term Fund (December 2002), Reliance Fixed Term Scheme (March 2003), Reliance Banking Fund (May 2003), Reliance Gilt Securities Fund (July 2003), Reliance Monthly Income Plan (December 2003), Reliance Diversified Power Sector Fund (March 2004) Reliance Pharma Fund ( May 2004), Reliance Floating Rate Fund (August 2004), Reliance Media & Entertainment Fund (September 2004), Reliance NRI Equity Fund (October 2004), Reliance NRI Income Fund (October 2004), Reliance Index Fund (January 2005), Reliance Equity Opportunities Fund (February 2005), Reliance Fixed Maturity Fund Series I (March 2005), Reliance Fixed Maturity Fund - Series II (April 2005), Reliance Regular Saving Fund (May 2005), Reliance Liquidity Fund (June 2005), Reliance Tax Saver (ELSS) Fund (July 2005), Reliance Fixed Tenor Fund (November 2005) and Reliance Equity Fund (Feb 2006).
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RCAM has been registered as a portfolio manager vides 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.

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Name and Address

Mr. Amitabh Jhunjhunwala Flat A-212, NCPA Apartments Nariman Point, Mumbai 400 021. Senior Corporate Executive

Other Directorships
Director: Reliance Capital Limited. Harmony Foundation. Reliance Asset Management (Mauritius) Limited. Reliance General Insurance Company Limited. Reliance Life insurance Company Limited. Anil Dhirubhai Ambani Enterprises Limited.

Mr. Amitabh Chaturvedi Raheja Empress, Flat No. 1201/1202, 12th Floor, Veer Savarkar Marg, Opp. Siddhi Vinayak Temple, Prabhadevi, Mumbai - 400 025. Senior Corporate Executive 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 Info investments Limited. Financial Planning Standards Board of India

Chairman: Matrix Advisors (India) Pvt. Ltd. Director : BOB Capital Markets Limited, Peoples Financial Services Limited Alpha plus Investment Mgt Pvt.Ltd

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The Mutual Fund

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. 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.

Auditors
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Statutory Auditor to the Schemes of Reliance Mutual Fund: Haribhakti & Co. Chartered Accountants 42, Free Press House, Nariman Point, Mumbai - 400 021. Internal Auditor to the Schemes of Reliance Mutual Fund : Price Waterhouse Coopers. Chartered Accountants 252, Veer Savarkar Marg, Shivaji Park, Dada, Mumbai - 400 028. Statutory Auditors to the Asset Management Company Dalal & Shah Chartered Accountants 'The Regency', Office No. 11., 1st Floor, National Library Road, Bandra (W), Mumbai - 400 050. Statutory Auditors to the Trustee Company M/s. Malpani & Associates Chartered Accountants 307, Chartered House, Dr. C.H. Street, Near Marine Lines Church, Mumbai - 400 002.

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The Custodian
Deutsche Bank, AG The Trustee has appointed Deutsche Bank, AG located at Kodak House, Ground Floor, 222 Dr. D.N.Road, Mumbai-400 001, as the Custodian of the securities that are bought and sold under the Scheme. A Custody Agreement has been entered with Deutsche Bank in accordance with SEBI Regulations. The Custodian is approved by SEBI under registration no. IN/CUS/003 to act as Custodian for the Fund. Deutsche Bank AG, the Custodian shall, inter alia:

Provide post-trading and custodial services to the Mutual Fund.

Keep Securities and other instruments belonging to the Scheme in safe custody. Ensure smooth inflow/outflow of securities and such other instruments as and when necessary, in the best interests of the unitholders.

Ensure that the benefits due to the holdings of the Mutual Fund are recovered and

Be responsible for loss of or damage to the securities due to negligence on its part on the part of its approved agents.

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The Registrar
Reliance Capital Asset Management Limited has appointed M/s. Karvy Computer share Pvt. Limited to act as the Registrar and Transfer Agent to the Schemes of Reliance Mutual Fund. M/s. Karvy Computer share Pvt. Limited (KCL) having their office at No.21, Avenue 4, Street No.1, Adjacent to Rainbow Hospital, Banjara Hills, Hyderabad - 500 034, is a Registrar and Transfer Agent registered with SEBI under registration no. INR000000221. Reliance Capital Asset Management Ltd. and the Trustee have satisfied themselves, after undertaking appropriate due diligence measures, that they can provide the services required and have adequate facilities, including systems facilities and back up, to do so. The Trustee has also laid down broad parameters for supervision of the Registrar. As Registrar to the Schemes, KCL will accept and process investor's applications, handle communications with investors, perform data entry services, dispatch Account Statements and also perform such other functions as agreed, on an ongoing basis. The Registrar is responsible for carrying out diligently the functions of a Registrar and Transfer Agent and will be paid fees as set out in the agreement entered into with it and as per any modification made thereof from time to time.

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Management Team
Board of Directors
Amitabh Jhunjhunwala Amitabh Chaturvedi Kanu Doshi Manu Chadha

Management Team
President Vikrant Gugnani Chief Investment Officer K.Rajagopal Head Equity Investments Madhusudan Kela

Equity Fund Managers

Equity Fund Manager Equity Fund Manager Equity Fund Manager Equity Fund Manager Ashish N Mehta Sunil B. Singhania Ashwani Kumar Shailesh Raj Bhan Amitabh Mohanty Amit Tripathi Ramesh Rachuri Prashant Pimple Abraham Alapatt Amit Bapna Rajesh Derhgawen Vinay Nigudkar Balkrishna Kini Geeta Chandran Pradeep Andrade Prashanth D Pereira Sundeep Sikka Aashwin Dugal Devendra Daga Gurbir Chopra

Debt Fund Managers

Head Fixed Income Debt Fund Manager Debt Fund Manager Debt Fund Manager

Head Of Departments t
Brand and Communication Finance and Accounts Human Resource Development Information Technology Legal & Compliance Operations & Settlement Infrastructure & Administration R&T operations Sales and Distribution

Zonal Heads
Northern Zone Head Western Zone Head Southern Zone Head

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Our Service Providers

Registrar to the schemes of Reliance Capital Asset Management: Karvy Computershare Pvt. Ltd Custodians to the schemes of Reliance Capital Asset Management Deutsche Bank AG Bankers to the Schemes of Reliance Capital Asset Management

HDFC Bank Ltd.

Reliance Fixed Maturity Fund Reliance Monthly Income Plan Reliance Income Fund Reliance Medium Term Fund Reliance Liquid Fund Reliance Short Term Fund Reliance Gilt Securities Fund Reliance Fixed Term Scheme Reliance Floating Rate Fund Reliance NRI Income Fund Reliance Growth Fund Reliance Vision Fund Reliance NRI Equity Fund Reliance Index Fund Reliance Equity Opportunities Fund Reliance Banking Fund Reliance Diversified Power Sector Fund Reliance Pharma Fund Reliance Media & Entertainment Fund

ICICI Bank Ltd.

Reliance Fixed Maturity Fund Reliance Monthly Income Plan Reliance Income Fund Reliance Medium Term Fund Reliance Liquid Fund Reliance Short Term Fund Reliance Gilt Securities Fund Reliance Fixed Term Scheme Reliance Floating Rate Fund Reliance NRI Income Fund Reliance Growth Fund Reliance Vision Fund Reliance NRI Equity Fund Reliance Index Fund Reliance Equity Opportunities Fund Reliance Banking Fund Reliance Diversified Power Sector Fund Reliance Pharma Fund Reliance Media & Entertainment Fund

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ABN Amro Bank

Reliance Liquid Fund Reliance Income Fund Reliance Medium Term Fund Reliance Vision Fund Reliance Growth Fund Reliance Short Term Fund Reliance Gilt Securities Fund (Long Term) Reliance Gilt Securities Fund (Short Term) Reliance Fixed Maturity Fund Reliance Fixed Term Scheme Reliance Floating Rate Fund Reliance Fixed Maturity Fund

Citibank N.A.
Reliance Income Fund Reliance Liquid Fund Reliance Short Term Fund Reliance Gilt Securities Fund (Long Term) Reliance Gilt Securities Fund (Short Term) Reliance Vision Fund (Dividend & Redemption) Reliance Growth Fund (Dividend & Redemption) Reliance Monthly Income Plan (Redemption) Reliance Medium Term Fund (Redemption) Reliance Banking Fund (Redemption

Standard Chartered Bank

Reliance Income Fund Reliance Liquid Fund Reliance Short Term Fund Reliance Fixed Term Scheme-IPO A/C Reliance Floating Rate Fund

Deutsche Bank Ltd.

Reliance Liquid Fund

HSBC Bank

UTI Bank

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Reliance Income Fund Reliance Liquid Fund Reliance Vision Fund Reliance Growth Fund Reliance Medium Term Fund Reliance Short Term Fund Reliance Banking Fund Reliance Gilt Securities Fund (Long Term) Reliance Gilt Securities Fund (Short Term) Reliance Monthly Income Plan Reliance Income Fund Reliance Medium Term Fund Reliance Gilt Securities Fund (Long Term) Reliance Gilt Securities Fund (Short Term) Reliance Banking Fund Reliance Fixed Term Scheme Reliance Floating Rate Fund Reliance Media & Entertainment Sector Scheme Reliance NRI Equity Fund Reliance NRI Income Fund Reliance Index Fund

Reliance Liquid Fund Reliance Short Term Fund

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IDBI Bank Reliance Liquid Fund Reliance Vision Fund Reliance Growth Fund Reliance Short Term Fund Reliance Medium Term Fund (Redemption) Reliance Monthly Income Plan (Redemption) Reliance Income Fund (Redemption) Reliance Banking Fund (Redemption

Ing Vysya Bank Reliance Liquid Fund Reliance Short Term Fund Reliance Income Fund

CHAPTER 6 Schemes Offered by Reliance Mutual Fund

Equity/Growth schemes
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

Debt/Income Schemes
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The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

Sector Specific Schemes

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds.

Equity/Growth schemes

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 Mutual Fund creates history with the Reliance Equity Fund NFO

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The recently concluded Reliance Equity Fund NFO has created history with collections of over Rs. 5700 crores from over 9.29 lac applications. The fund has received a tremendous response from investors across the length and breadth of the country. A diversified equity fund with derivative strategies that aim to minimize risk and take advantage of both the rising and falling market conditions, the Reliance Equity Fund was launched at a time when the markets were at an all time high and there was a need for such an innovative product. RELIANCE EQUITY FUND Scheme Features Type: An open-ended diversified Equity Scheme Investment Pattern: 75-100% in equity and equity related instruments, up to 25% in debt and money market instruments. Net Asset Value : Calculated & declared every Working day Plans / Options : Growth Plan : Growth Option & Bonus Option; Dividend Plan : Dividend Pay-out Option & Dividend Re-investment Option Application Amount : Rs. 5,000/- and in multiples of Re. 1 thereafter under each option Min. Additional Investment (During Continuous offer) : Rs. 1000/- and in multiples of Re. 1 thereafter (*including switch in after opening a folio with minimum of Rs 5000) Portfolio Disclosures : Half-yearly Entry Load : For Subscription below Rs. 2 crs - 2.25% For subscription of Rs. 2 crs & above and below Rs 5 crs - 1.25% For Subscription of Rs. 5 crs & above - Nil However there will be no Entry load during the New Fund Offer (NFO)

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Exit Load : For Fresh subscription during the NFO including the 1 st installment of RIP / SIP and for switch-in applications to Reliance Equity Fund from any other scheme - an exit load of 2.00% shall be levied if redeemed/switched before 6 months and 1.00% if redeemed / switched before 1 year from the date of allotment for amount up to Rs. 5 crores. There shall be no exit load for amount of Rs. 5 Crs & above Contingent Deferred Sales Charge: Nil Redemption Cheques Issued : Mutual Fund shall endeavor to issue within 3 to 4 Working days Minimum Redemption Amount : Any amount or any number of units Cut off time : 3:00 p.m. on working days as defined in the Offer Document Recurring / Systematic Investment Plan (RIP / SIP): Available only through ECS / Direct Debit mode during the NFO. However, RIP / SIP is available through ECS / Direct Debit, Cheques and any other modes as may be prescribed by the AMC from time to time during the continuous offer. Trigger Facility: Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Switch Facility : Available, subject to minimum Rs. 5000/- & any amount thereafter in switch in scheme (for opening a new folio/account) & minimum Rs 1000 & any amount thereafter for additional switch in. No load applicable for switches between the equity / sector specific schemes. However, differential load shall be charged for switching from Reliance Index Fund to any other equity/sector specific scheme and switching from any other equity / sector specific scheme to Reliance NRI Equity Fund. Systematic Transfer Plan / Dividend Transfer Plan: Available Nomination Facility : Available Mode of Holding : Single, Joint or Anyone or Survivor

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Benchmark Index : S&P CNX Nifty Switching Option : Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme(s) that may be launched / managed in future, as per the features of the respective scheme and as per the applicable loads. Recurring Expenses: Investment Management Expenses Operational Expenses Marketing Expenses Total

1.25 % 0.25 % 1.00 % 2. 50%

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 TAX SAVER (ELSS) FUND Scheme Features Type: An Open-ended Equity Linked Savings Scheme. Investment Pattern: 80-100% in equity and equity related securities.

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Up to 20% in Debt and Money Market Instruments. Net Asset Value: Calculated & declared every working day Plans / Options: Growth Option Dividend Pay-out Option & Dividend Reinvestment Option Application Amount: The minimum amount for all category of investors is Rs. 500/- and in multiples of Rs. 500 thereafter. There is no cap on the maximum amount. However investments only up to Rs. 1 lakh by the eligible investor in the scheme will qualify for deduction under the Act. Min. Additional Investment: Minimum additional purchases of Rs. 500. Portfolio Disclosures: Half-yearly Entry Load: During New Fund Offer: NIL Exit Load: During New Fund Offer: NIL Contingent Deferred Sales Charge: Nil Inter-Scheme Switch: Unit holders will have the flexibility to alter the allocation of their investments among the scheme(s) offered by the Mutual Fund, in order to suit their changing investment needs, by easily switching between all the scheme(s)/plans/options of the Mutual Fund, after the statutory lock-in period of 3 Years. No load applicable for switches between the equity schemes. However, differential load shall be charged for switching from Reliance Index Fund and switching to Reliance NRI Equity Fund. Inter Plan/Inter Option Switch: Unit holders will have the flexibility to alter the allocation of their investments among the scheme(s) offered by the Mutual Fund, in order to suit their changing investment needs, by easily switching between all the scheme (s)/plans/options of the Mutual Fund, after the statutory lock-in period of 3 Years. Redemption Cheques Issued: Will be allowed only after the expiry of the lock

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in period of 3 years. Minimum Redemption Amount: Will be allowed only after the expiry of the lock in period of 3 years. Cut off time: 3:00 p.m. on working days as defined in the Offer Document Recurring Investment Plan (RIP): Available Trigger Facility: Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Available only after the expiry of the lock in period of 3 years. Switch Facility: Available after the statutory lock-in period of 3 Years. Systematic Transfer Plan / Dividend Transfer Plan: Available. However, the scheme cannot become a transferor scheme before 3 year lock-in-period. Nomination Facility: Available Mode of Holding: Single, Joint or Anyone or Survivor Benchmark Index: BSE 100 Switching Option: Available only after the expiry of the lock in period of 3 years. Recurring Expenses: AMC Fees Operational Expenses Marketing Expenses Total

1.25% 0.25 % 1.00 % 2.50%

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Special Benefit under this Scheme:

Accident Death Insurance Cover: All eligible investments would qualify for Personal Accident Death Insurance Cover up to the maximum cover of Rs. 5 lac. (The term accidental death would cover death occurring out of any Road or Rail accident only). (Please read the terms & conditions carefully before investing). The insurance cover will be linked to the investment value of the individual (at NAV related prices) & will not be linked to the capital appreciation on his investment. i.e.: if his capital appreciates on account of market conditions, his insurance cover will not change. Insurance Cover: For investment amount Less than or equal to Rs 10,000 Between Rs 10,001 to Rs 25,000 Between Rs 25,001 to Rs 50,000 Greater than Rs 50,001 Level of Cover Rs 50,000 Rs 2,00,000 Rs 3,00,000 Rs 5,00,000

Tax Benefits: Investment in this fund would enable you to avail the benefits under clause (xiii) of Sub-section (2) of Section 80C of the Incometax Act, 1961. Investment made upto Rs 1 lakh by the eligible investor being an Individual or a Hindu Undivided Family in the scheme will qualify for deduction under this Section of the Act.

Dividends received will be absolutely TAX FREE in the hands of investors

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The dividend distribution tax (payable by the AMC) for equity schemes is also NIL

Attractive Capital Gains Tax on Equity Schemes, shown as under :

Long term Capital Gains Equity Schemes Nil

Short term Capital Gains *10%

*plus surcharge & education cess PS: STT is levied at the time of redemption of units. It is applicable only in Equity Funds.

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 Scheme Features Type : An Open-ended equity growth Scheme Investment Pattern : Equity and Equity related Instruments - 65% - 100%. Debt and Money Market Instruments - Upto 35%.
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Net Asset Value : Calculated & declared every working day Plans / Options : Growth Plan : Growth Option & Bonus Option Dividend Plan : Dividend Pay-out Option & Dividend Reinvestment Option Application Amount : Rs.5,000/- for Resident Indians and Non-Resident Indians and in multiples of Rs.1/- thereafter for both plans. Min. Additional Investment : Rs.1000/- and in multiples of Rs.1/- thereafter for both plans Portfolio Disclosures : Half-yearly Entry Load : For Subscription below Rs. 2 crs - 2.25% For subscription of Rs. 2 crs & above and below Rs 5 crs - 1.25% For Subscription of Rs 5 crs & above - Nil Exit Load : Nil. Contingent Deferred Sales Charge: Nil Inter-Scheme Switch: At applicable loads in the respective schemes. No load applicable for switches between the equity / sector specific schemes and Reliance Growth Fund and vice-versa except Reliance NRI Equity Scheme. Inter Plan/ Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 3 Working days Minimum Redemption Amount : Any amount or any number of units Cut off time : 3:00 p.m. on working days as defined in the Offer Document Recurring Investment Plan (RIP) : Available

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Regular investment option for corporate employees (RICE) : Available Regular withdrawal Plan (RWP) : Available Trigger Facility : Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Switch Facility : Available Systematic Transfer Plan / Dividend Transfer Plan : Available Nomination Facility : Available Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : BSE 100 Index

Switching Option : Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme (s) that may be launched / managed in future, as per the features of the respective scheme. Recurring Expenses Investment Management Expenses Operational Expenses Marketing Expenses Total

1.25 % 0.25 % 1.00 % 2.50%

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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 VISION FUND Scheme Features Type : An Open-ended equity growth Scheme Investment Pattern : Equity and Equity related Instruments - Atleast 60% Debt Instruments - Upto 30% Money Market Instruments - Upto 10%

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Investment Objective : 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. Net Asset Value : Calculated & declared every working day Plans / Options : Growth Plan : Growth Option & Bonus Option Dividend Plan : Dividend Pay-out Option & Dividend Reinvestment Option Application Amount : Rs.5,000/- for Residents and Non-Resident investors and in multiples of Rs.1/- thereafter for both plans. Min. Additional Investment : Rs.1000/- and in multiples of Rs.1/- thereafter for both plans. Portfolio Disclosures : Half-yearly Entry Load : For Subscription below Rs. 2 crs - 2.25% For subscription of Rs. 2 crs & above and below Rs.5 crs - 1.25% For Subscription of Rs 5 crs & above - Nil Exit Load : Nil. Contingent Deferred Sales Charge: Nil Inter-Scheme Switch: At applicable loads in the respective schemes. No load applicable for switches between the equity schemes and Reliance Vision Fund and vice-versa except Reliance NRI Equity Fund Inter Plan/ Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 3 Working days Minimum Redemption Amount : Any amount or any number of units
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Cut off time : 3:00 p.m. on working days as defined in the Offer Document Recurring Investment Plan (RIP) : Available Regular investment option for corporate employees (RICE) : Available Regular withdrawal Plan (RWP) : Available Trigger Facility : Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Switch Facility : Available Systematic Transfer Plan/ Dividend Transfer Plan : Available Nomination Facility : Available Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : BSE 100 Index Switching Option : Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme (s) that may be launched / managed in future, as per the features of the respective scheme. Recurring Expenses: Investment Management Expenses Operational Expenses Marketing Expenses Total

1.25 % 0.25 % 1.00 % 2.50%

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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 EQUITTY OPPORTUNITIES FUND Scheme Features Type : An open-ended Diversified Equity Scheme Investment Pattern : 75-100% in equity and equity related instruments, upto 25% in debt and money

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market instruments* *including upto 25% of the corpus in securitised debt. Net Asset Value : Calculated & declared every working day Plans / Options : Growth Plan : Growth Option & Bonus Option Dividend Plan : Dividend Pay-out Option & Dividend Reinvestment Option Application Amount : Rs. 5,000/- and in multiples of Re. 1, thereafter for both plans. Min. Additional Investment : Any amount Portfolio Disclosures : Half-yearly Entry Load : For Subscription below Rs. 2 crs - 2.25% For subscription of Rs. 2 crs & above and below Rs 5 crs - 1.25% For Subscription of Rs 5 crs & above - Nil Exit Load : Nil. Contingent Deferred Sales Charge : Nil Inter-Scheme Switch : At the applicable loads on the respective schemes. No load applicable for switches between the equity /sector specific schemes and Reliance Equity Opportunity Fund and vice-versa except Reliance NRI Equity Fund. Inter Plan/Inter Option Switch: Nil Redemption Cheques Issued: Mutual Fund shall endeavour to issue within 3 Working days Minimum Redemption Amount : Any amount or any number of units Cut off time : 3:00 p.m. on working days as defined in the Offer Document

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Recurring Investment Plan (RIP) : Available Regular investment option for corporate employees : Available Regular withdrawal Plan (RWP) : Available Trigger Facility : Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Switch Facility : Available Systematic Transfer Plan / Dividend Transfer Plan : Available Nomination Facility : Available Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : BSE 100 Index

Switching Option : Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme (s) that may be launched / managed in future, as per the features of the respective scheme. Recurring Expenses: Investment Management Expenses Operational Expenses Marketing Expenses Total 1.25 % 0.25 % 1.00 % 2. 50%

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The objective of 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. RELIANCE INDEX FUND Scheme Features Type: An Open Ended Index Linked Scheme Investment Pattern: Nifty Plan Equity Securities covered By NIFTY 95100%
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Cash And Money Market Instruments, including money at call but excluding subscription and redemption Cash Flow. 0-5% Sensex Plan Equity Securities covered By SENSEX Cash And Money Market Instruments, including money at call but excluding subscription and redemption Cash Flow. 0-5% Net Asset Value : Calculated & declared every working day 95100%

Plans / Options: Nifty Plan and Sensex Plan

o o o o

Growth Plan : Growth Option Bonus Option Dividend Plan : Dividend (Pay-out) Option Dividend (Reinvestment) Option

Application Amount: Rs.5, 000/- for Resident Indians and Non-Resident Indians and in multiples of Rs.1/- thereafter for both plans. Min. Additional Investment: Any amount Portfolio Disclosures: Half-yearly Entry (Sales) Load: 1%
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Exit Load: Nil Contingent Deferred Sales Charge: Nil Inter-Scheme Switch: At the applicable loads on the respective schemes. No load applicable for switches between the equity /sector specific schemes and Reliance Index Fund and vice-versa except Reliance NRI Equity Fund. Inter Plan/Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 3 Working days Minimum Redemption Amount : Any amount Cut off time : 3:00 p.m. on working days as defined in the Offer Document Systematic Transfer Plan and Dividend Transfer Plan : Available Trigger Facility : Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Switch Facility : Available Nomination Facility : Available Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : S&P CNX NIFTY for Nifty Plan and BSE SENSEX for Sensex Plan Switching Option : Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into / from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme (s) that may be launched / managed in future, as per the features of the respective scheme. Recurring Expenses:
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Investment Management Expenses Operational Expenses Marketing Expenses Total

1.25% 0.75% 0.50% 2.50%

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. RELIANCE NRI EQUITY FUND Scheme Features Type: An open ended diversified equity scheme. Asset Allocation Pattern: Instrument Equity and Equity related Instruments Asset Allocation 65-100% Risk Medium to High

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Debt and Money Market Instruments* Choice of Plans:

Up to 35%

Low to Medium

Growth Plan: The Growth Plan is designed for investors interested in capital appreciation on their investment and not in regular income. Accordingly, the Scheme will not declare dividends under the Growth Plan. The income earned on the Growth Plan's corpus will remain invested in the Growth Plan. The Growth Plan has two options: Growth Option : Under this option, there will be no distribution of income and the returns to the investor is only by way of capital gains/ appreciation, if any, through redemption at applicable NAV of the units held by them.

Bonus Option : Under this plan Bonus in the form of additional units will be allotted.

Dividend Plan: The Dividend Plan has been designed for investors who require regular income in the form of dividends. Under the Dividend Plan, the Scheme will endeavour to make regular dividend payments to the unit holders. Dividend will be distributed from the available distributable surplus. Dividend Plan has two options: Dividend Payout Option: Under this option the Dividend declared under the Dividend Plan will be paid to the unit holders within 30 days from the declaration of the dividend.

Dividend Reinvestment Option: The Dividend Plan has a Reinvestment Option whereby the dividend distributed under the plan will be automatically reinvested at the ex-dividend NAV on the transaction day following the date of declaration of dividend and additional units will be allotted accordingly.

Minimum Application Amount Rs. 50,000/-and in multiples of Re. 1 thereafter

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Load Structure Entry Load For Amount below Rs. 2 crore 3% For Amount of Rs. 2 crore & above but below Rs. 5 crore For Amount of Rs. 5 crore & above Exit Load Nil 2%

Nil

Benchmark Index: BSE 200 Investor Friendly Features: Redemption we endeavour to issue the redemption cheque within 3-4 working days Minimum Redemption Amount Any amount or any number of units. Systematic Investment Plan you can invest on a Monthly or Quarterly basis, a minimum sum of Rs. 500/- or Rs. 1500/- respectively and in multiples of Re. 1/- thereafter. Systematic Withdrawal Plan You can withdraw from your investments on a Monthly or Quarterly basis, a minimum sum of Rs. 500/- and in multiples of Rs. 100/- thereafter.

64

The primary investment objective of the scheme is to seek to generate long term capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity & equity related securities and Derivatives and the secondary objective is to generate consistent returns by investing in debt and money market securities. RELIANCE LONG TERM EQUITY FUND Scheme Features Type: A 36-months close ended diversified equity fund with an automatic conversion into an open ended scheme on expiry of 36-months from the date of allotment Asset Allocation/Investment pattern
65

Under normal circumstances, the anticipated asset allocation would be Instruments Indicative asset allocation Equity and Equity related Securities Debt and Money market securities (including investments in securitized debt 70% to 100% 0% to 30% Medium to High Low to Medium Risk Profile

An overall limit of 100% of the portfolio value has been introduced for the purpose of equity derivatives in the scheme. Options Available:

Growth Option Dividend: Only Dividend payout

Benchmark Index: BSE - 200 Application Amount: Rs 5000 and in multiples of Re. 1 thereafter Dates of Launch

NFO Opens: 14th Nov06 NFO Closes: 11th Dec06 Earliest Closing Date: 28th Nov06

Liquidity The Scheme will offer for Redemption / Switch-out of Units on an ongoing basis at half yearly intervals at NAV based prices. The Redemption / Switch-out of Units will be available only during the Specified Redemption Period i.e. the first five Business Days immediately after the end of each calendar half year. After the conversion of Scheme into an open-ended scheme, the Scheme will offer for Sale/Switch-in and Redemption/Switch-out of Units at NAV based prices on every Business Day on an ongoing basis.
66

Load Structure (During the New Fund Offer) Entry Load: Nil Exit Load For subscription

If redeemed/ switched before completion 12 months from the date of allotment

If redeemed/ switched between 12 months - 1 day and on or before completion of 24 month from the date of allotment

If redeemed/ switched between 24 months - 1 day and on or before completion of 36 month from the date of allotment

Exit Load

4%

3%

2%

Debt/ Income Schemes

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 NRI Income Fund Main Features Type An open ended Income scheme Investment Pattern: Debt Instruments - 100%* * Investment in securitized debts upto 40% may be undertaken.
67

Net Asset Value: Calculated on daily basis Plans And Options: Growth Plan: Growth Option Dividend Plan: Dividend Payout and Dividend Reinvestment Option Application Amount: Rs.50, 000, and in multiples of Re.1 thereafter for all plans. Min. Additional Investment: Rs.1000 and in multiples of Rs.1 thereafter, for all plans. Portfolio Disclosures: Half-yearly Entry Load: NIL Exit Load: For subscription upto Rs. 5 Lacs, the exit load will be 0.50%, if the units are redeemed within 6 months from the date of allotment of units. No exit load is applicable for subscription above Rs. 5 Lacs. Contingent Deferred Sales Charge: Nil Inter-Scheme Switch: Available at the applicable loads in the respective schemes. Inter Plan/ Inter Option Switch: Nil Redemption Cheques Issued: Mutual Fund shall endeavour to issue within 3 working days. Minimum Redemption Amount: Any amount or any number of units Cut off time: 3:00 p.m. on working days as defined in the Offer Document Facilities Available:

68

Recurring Investment Plan (RIP) Regular WithdrawalPlan (RWP) Regular Investment Option for Corporate Employees (RICE) Switch Facility Nomination Facility

Mode of Holding: : Single, Joint or Anyone or Survivor Benchmark Index : CRISIL Composite Bond Fund Index

Switching Option: Investors may opt to switch Units between the Growth Plan & Dividend Plan of the Scheme at NAV based prices after completion of lock-in period, if any. Switching will also be allowed into/from any other eligible open-ended schemes of the Fund either currently in existence or a scheme that may be launched / managed in future, after the completion of the lock-in period. EXPENSES OF THE SCHEME RECURRING EXPENSES As per SEBI (Mutual Funds) Regulations, the maximum expenses that can be charged to an equity scheme are as follows:

Recurring Expenses

Estimated expenses of the scheme

69

First Rs. 100 crores

2.50%

AMC Fees

0.75%

Next Rs. 300 crores

2.25%

Operational and Other Expenses

0.25%

Next Rs. 300 crores Balance

2.00%

Marketing Expenses Total

0.25%

1.75%

1.25%

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 Market Instruments Reliance Income Fund Main Features The Scheme: Open-ended Income Scheme Investment Pattern: Types of Instruments Allocation

70

(% of Net Assets) Debt Instruments Money Market Instruments 50 - 100% 0 - 50%

Net Asset Value: Calculated on daily basis Choice of Plans: Retail Plan Growth & Bonus Options Dividend plans available Monthly Dividend Plan Quarterly Dividend Plan Half-Yearly Dividend Plan Annual Dividend Plan Dividend Payout Option & Dividend Re-investment Option Dividend options available

Application Amount: Retail Plan: For Resident Indians and Non-Resident Indians: Growth Plan : Rs. 5000 Monthly Dividend Plan : Rs. 25,000 Quarterly Dividend Plan : Rs. 10,000 Half Yearly Dividend Plan : Rs.5,000 Annual Dividend Plan : Rs. 5,000 And in multiples of Re.1/- thereafter for all plans. Min. Additional Investment:

71

Rs.1000 and in multiples of Rs.1 thereafter, for all categories of investors under all Plans. Portfolio Disclosures : Half-yearly. Entry Load : NIL Exit Load : 0.5% if redeemed within 6 months for subscription upto Rs. 5lacs; 0.10% if redeemed within 7 working days from the date of allotment of units for subscription amounts exceeding Rs. 5 lacs. Contingent Deferred Sales Charge: Nil Inter-Scheme Switch: Available at applicable loads in the respective schemes. Inter Plan/ Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 3 working days Minimum Redemption Amount : Any amount or any number of units Cut off time : 3:00 p.m. on working days as defined in the Offer Document Facilities Available : Recurring Investment Plan (RIP) Regular Withdrawal lan (RWP) Regular Investment Option for corporate employees (RICE) Systematic Transfer Plan Dividend Transfer Plan Switch Facility Nomination Facility

72

Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : CRISIL Composite Bond Fund Index Switching Option: : Investors may opt to switch units between the Growth Plan and Monthly/ Quarterly / Half Yearly and Annual Dividend Plans of the Scheme applicable NAV based prices after completion of the lock-in period, if any.

Recurring Expenses: Retail Plan: Investment Management Fees 1.25%

Marketing & Selling Expenses

0.25%

Custody Fees Registrar & Transfer Agents Fees

1.00% 0.15%

Trustee Fees

0.03%

73

Other Expenses Total

0.06% 1.80%

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). Reliance Floating Rate Fund Main Features Type : An Open-ended Income Scheme Investment Pattern : 0-30% in Fixed Rate Debt Securities (including fixed rate securitised debt, Money Market Instruments and Floating Rate Debt Instruments swapped for fixed rate returns). 70% - 100% in Floating Rate Debt Securities (including floating rate securitised debt, Money Market Instruments and Fixed Rate Debt Instruments swapped for floating rate returns). (For details on investment allocation, please refer to the Offer Document)
74

Net Asset Value: Calculated on daily basis Choice of Plans/Options: Growth Plan:
o

Growth Option Monthly Dividend payout Option Daily Dividend Reinvestment Option Weekly Dividend Reinvestment Option Monthly Dividend Reinvestment Option

Dividend Plan:
o o o o

Application Amount: Rs. 25,000/- for Resident and Non-Resident investors and in multiples of Re. 1, thereafter for all plans. Additional Subscription/Investment Amount: Rs.1000 and in multiples of Re.1 thereafter for all plans Portfolio Disclosures: Half Yearly Entry (Sales) Load: Nil Exit Load: Nil Contingent Deferred Sales Charge: Nil Inter-Scheme Switch : At the applicable loads in the respective scheme/s Inter Plan/Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 3 working days. Minimum Redemption Amount: Any Amount

75

Cut-off time: 3.00 pm on working days as defined in the Offer Document Facilities Available : Recurring Investment Plan (RIP) Systematic Transfer Plan Dividend Transfer Plan Switch Facility Nomination Facility

Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : CRISIL Liquid Fund Index Switching Option : Investors may opt to switch Units between the Growth Plan & Dividend Plan of the Scheme at NAV based prices after completion of lock-in period, if any. Switching will also be allowed into/from any other eligible open-ended schemes of the Fund either currently in existence or a scheme that may be launched / managed in future, after the completion of the lock-in period, if any. Estimated Recurring Expenses: AMC Fees Operational and Other Expenses Marketing Expenses Total 0.30% 0.15% 0.30% 0.75%

76

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 Gilt Securities Fund Main Features Type: An Open-ended Government Securities Scheme Investment Pattern: Types of Instruments Short Term Gilt Plan Gilts Money Market Instruments 65 - 100% 0 - 35% Allocation (% of Net Assets)

77

Long-Term Gilt Plan Gilts Money Market Instruments 70 - 100% 0 - 30%

Net Asset Value: Calculated on daily basis

Choice of Plans : Short Term Gilt Plan Plan Retail Plan Option Growth option

Long Term Gilt Plan Plan Retail Plan Option Growth option Dividend Option :

Dividend Payout Dividend Re-investment

PF Option :

Automatic Capital Appreciation Payout Option(ACAPO) / Defined maturity Date Option

78

(DMDO) / Automatic Anuual reinvest Option (AARO) Application Amount: Rs.100,000 and in multiples of Rs.1 thereafter for all Options under the Retail Plan of Short Term Gilt Plan and Long Term Gilt Plan. Min. Additional Investment: Rs.1000 and in multiples of Rs.1 thereafter, for all Options under the Retail Plan of Short Term Gilt Plan and Long Term Gilt Plan. Portfolio Disclosures: Half-yearly Entry Load: NIL Exit Load: 0.80% if redeemed within 1 year Contingent Deferred Sales Charge: Nil Inter-Scheme Switch: Available at applicable loads in the respective schemes. Inter Plan/ Inter Option Switch : No Load for inter plan or inter option switch Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 1 working day Minimum Redemption Amount : Any amount or any number of units Cut off time : 3:00 p.m. on working days as defined in the Offer Document Facilities Available : Systematic Transfer Plan Dividend Transfer Plan Switch Facility

79

Nomination Facility

Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : Short Term Gilt Plan: I Sec - Si Bex Long Term Gilt Plan: I Sec - Li Bex Switching Option: Investors may opt to switch Units between the plan and/or options under the plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme (s) that may be launched / managed in future, as per the features of the respective scheme. Recurring Expenses: Investment Management Expenses Operational Expenses Marketing Expenses Total 0.25 % 0.20 % 0.80 % 1.25%

80

The primary investment objective of the Plan is to seek to generate regular returns and growth of capital by investing in a diversified portfolio. Reliance Fixed Tenor Fund Main Features Type of Scheme: A Close-ended Scheme

Investment Pattern: Plan A Instrument Asset Allocation Risk Profile

81

Government Securities issued by Central &/or State Govt & other fixed income/ debt securities* including money market instruments & securitised debt *Debt Securities will also include Securitised Debt which may go up to 100% of the portfolio.

0% - 100%

Medium to Low

Application Amount: Under Plan A Rs 5000 per option & in multiples of Re. 1 thereafter Entry Load : Nil

Exit Load: For Plan A 3.00% if redeemed before completion of 12 months 2.50% if redeemed between 12 months-1 day & before completion of 23 months. The time period will be calculated from the date of allotment of units and would be based on calendar months. No exit load will be charged upon maturity of the plans issued under the Scheme. No load will be charged on Inter-Option switches (i.e. within growth and dividend options) within the same Plan. RCAM, in consultation with the Trustees, reserves the right to change the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Scheme, on a prospective basis. Redemption Cheques Issued: Mutual Fund shall endeavour to issue within 3 working days. Cut off time : 3:00 p.m. on working days as defined in the Offer Document

82

Facilities Available : Switch Facility Nomination by unit holders Pledge of Units Lien on Units Mode of Holding : Single, Joint, Anyone or Survivor Investment Pattern : 0-100% - Government Securities issued by Central &/or State Govt & other fixed income/ debt securities including money market instruments & securitized debt. Load Structure: Entry Load: Nil Exit Load: 3.00% if redeemed before completion of 12 months 2.50% if redeemed between 12 months-1 day & before completion of 23 months Sponsor: Reliance Capital Limited. Trustee: Reliance Capital Trustee Co. Limited.

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 Liquid Fund Main Features Type: An Open - ended Liquid Scheme Investment Pattern: Types of Instruments Allocation
83

(% of Net Assets) Treasury Plan Call Money/Cash/Repo and Reverse Repo Money Market Instruments (Mibor linked instruments, CPs, T-Bills, CD and/or other Short Term papers) Cash Plan Call Money/Cash/Repo and Reverse Repo Mibor linked instruments, with daily put/call option Net Asset Value: Calculated on daily basis Choice of Plans: Treasury Plan Retail Option Institutional Option 0 - 95% 0 - 50%

0 - 95%

0 - 95%

Growth Option - Growth Plan Weekly Dividend (Re-Investment) Option Daily Dividend (Re-Investment) Option Monthly Dividend (Re-Investment) Option Monthly Dividend (Pay-out) Option Cash Plan Growth Option - Growth Plan Weekly Dividend (Re-Investment) Option

84

Daily Dividend (Re-Investment) Option

Application Amount: Treasury Plan - Retail Option

Treasury Plan - Institutional Option

Resident Indians & Non-Resident Indians Growth Option Weekly Dividend Option Daily Dividend Option Rs.5000 Rs.5000 Growth Option Weekly Dividend Option Daily Dividend Option Rs.1 crore Rs.1 crore

Rs.5000

Rs.1 crore

And in multiples of Re.1 thereafter for all options. Cash Plan Resident Indians & Non-Resident Indians Growth Option Weekly Dividend Option Daily Dividend Option

And in multiples of Re.1 thereafter for all options.

Rs.5000 Rs.5000 Rs.5000

And in multiples of Re.1 thereafter for all options.

Min. Additional Investment : Rs.1000 and in multiples of Rs.1 thereafter, for all categories of investors under all the Plans/ Options.
85

Portfolio Disclosures : Half-yearly Entry Load : NIL Exit Load : NIL Contingent Deferred Sales Charge : Nil Inter-Scheme Switch : Available at applicable loads in the respective schemes. Inter Plan/ Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 3 working day Minimum Redemption Amount : Any amount or any number of units Cut off time : 1:00 p.m. for purchases and 10.00 am for repurchases on all working days as defined in the Offer Document. Subject to utilisation of funds. Investors should note that RCAM reserves the right not to accept any application for subscription. Besides other week days, the Cash Plan will also have a Saturday transaction day, only for subscriptions. No redemptions will be accepted on Saturday. Facilities Available: Systematic Transfer Plan Dividend Transfer Plan Switch Facility Nomination Facility

Mode of Holding : Single, Joint or Anyone or Survivor

86

Benchmark Index : CRISIL Liquid Fund Index Switching Option : Investors may opt to switch Units between the Growth Option and Weekly Dividend Re-investment Option and Daily Dividend Re-investment Option and Monthly Dividend Re-investment Option and Monthly Dividend Payout Option of Reliance Liquid Fund , Treasury Plan and investors may also opt to switch between the Growth Option and Weekly Dividend Re-investment Option and Daily Dividend Re-investment Option of Reliance Liquid Fund , Cash Plan, at applicable NAV based prices after completion of the lock-in period, if any. Switching will also be allowed into / from any other eligible Plan(s) of the Schemes of the Fund either currently in existence or a Scheme that may be launched / managed in future, after the completion of the lock-in period, if any.

Recurring Expenses: Treasury Plan Retail Plan Investment Management Expenses Marketing Expenses Operational Expenses Total 0.25% Institutional Plan 0.30% Cash Plan 0.25%

0.45%

0.10%.

0.05%

0.10%

0.15 %

0.10%

0.80%

0.55%

0.40%

87

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 Monthly Income Plan Main Features Type of Scheme: An open-ended fund. Monthly income is not assured and is subject to the availability of distributable surplus. Investment Pattern:
Types of Instruments Minimum Allocation (% of Net Assets) Most Likely Maximum

88

Equity and Equity related Securities Fixed Income Securities (Debt & Money Market Instruments with average Maturity of 1 to 7 years.) 0% 15% Up to 20%

50%

80%

100%

Net Asset Value: Calculated on daily basis

Choice of Plans: Plan Monthly Dividend Plan Quarterly Dividend Plan Growth Plan Option Dividend Payout Option & Dividend Re-investment Option

Application Amount: For Resident and Non-Resident Investor: In Monthly Dividend Plan: 25,000 In Quarterly Dividend Plan: Rs.10, 000 In Growth Plan: Rs.10, 000 and in multiples of Re.1 thereafter for all plans. Min. Additional Investment: Rs.1000 and in multiples of Rs.1 thereafter, for all categories of investors under all Plans. Portfolio Disclosures: Half-yearly

89

Entry Load: NIL Exit Load: For Subscriptions upto Rs. 25 lacs. If redeemed within 3 months If redeemed after 3 months but before 6 months If redeemed after 6 months but before 9 months If redeemed after 9 months but before 12 months For Subscriptions more than Rs. 25 lacs. If redeemed within 7 working days from the date of allotment of units. 0.75% 0.60%

0.50%

0.25%

0.10%

Contingent Deferred Sales Charge: Nil Inter-Scheme Switch : Available at applicable loads in the respective schemes. Inter Plan/ Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 3 working day Minimum Redemption Amount : Any amount or any number of units Cut off time : 3:00 p.m. on working days as defined in the Offer Document Facilities Available : Recurring Investment Plan (RIP)

90

Regular Withdrawal Plan (RWP) Recurring Investment Plan for Corporate Employees (RICE) Systematic Transfer Plan Dividend Transfer Plan Switch Facility Nomination Facility

Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : CRISIL MIP Blended Index Switching Option : Investors may opt to switch units between the Monthly / Quarterly Dividend Plans and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open ended schemes of the Fund either currently in existence or a scheme that may be launched / managed in future, after the completion of the lock in period, if any. Recurring Expenses: Estimated expenses of the scheme : AMC Fees Marketing Expenses Operational Expenses Total 0.65% 1.15% 0.20% 2.00%

91

The primary objective of the Scheme is to generate stable returns for investors with a short term investment horizon by investing in fixed income securities of a short term maturity. Reliance Monthly Income Plan Main Features Type: An Open Ended Income Scheme Investment Pattern: Types of Instruments Debt and Money Market Instruments with average maturity up to a year Debt Instruments with average maturity greater than a year and normally up to 7 years depending upon availability. Allocation (% of Net Assets) 60 - 100%

40 - 60%

92

Net Asset Value : Calculated on daily basis

Choice of Plans : Retail Plan: Option Growth option Dividend option

Plan Growth plan Dividend Payout option. Dividend Re-investment option Monthly Dividend Payout option Monthly Dividend Reinvestment Option Quarterly Dividend Payout option Quarterly Dividend Reinvestment option

Application Amount : Rs.50,000 for all categories of investors under both the plans of the Retail Plan, and in multiples of Re.1 thereafter for all plans. Min. Additional Investment : Rs.1000 and in multiples of Rs.1 thereafter, for all categories of investors under all Plans. Portfolio Disclosures : Half-yearly

93

Entry Load : NIL Exit Load : NIL Contingent Deferred Sales Charge : Nil Inter-Scheme Switch : Available at applicable loads in the respective schemes. Inter Plan/ Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 1 working day Minimum Redemption Amount : Any amount or any number of units Cut off time : 3:00 p.m. on working days as defined in the Offer Document Facilities Available : Systematic Transfer Plan Dividend Transfer Plan Switch Facility Nomination Facility Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : CRISIL Liquid Fund Index Switching Option : Investors may opt to switch Units between the Growth Plan & Dividend Plan of the Scheme at NAV based prices after completion of lock-in period, if any. Switching will also be allowed into/from any other eligible open-ended schemes of the Fund either currently in existence or a scheme that may be launched / managed in future, after the completion of the lock-in period. Recurring Expenses: Retail Plan AMC Fees 0.25 %

94

Operational Expenses Marketing Expenses Total

0.15 % 0.25 % 0.65%

Sector Specific Schemes

The primary investment objective of the Scheme is to seek to generate continuous returns by actively investing in equity / equity related or fixed income securities of banks. Reliance Banking Fund Main Features Type: An open-ended banking sector scheme. Investment Pattern: Asset Allocation Pattern of the Scheme:
Types of Instruments Equity & Equity related securities Debt & Money Market Instruments Normal Allocation (% of Net Assets) 0 - 100 % 0 - 100 %

Net Asset Value : Calculated & declared every working day

95

Plans / Options : Growth Plan : Growth Option & Bonus Option Dividend Plan : Dividend Pay-out Option & Dividend Reinvestment Option Application Amount : Rs.5,000/- for Resident Indians and Non-Resident Indians and in multiples of Rs.1/- thereafter for both plans. Min. Additional Investment: Rs.1000/- and in multiples of Rs.1/- thereafter for both plans. Portfolio Disclosures : Half-yearly Entry Load : For Subscription below Rs. 2 crs - 2.25% For subscription of Rs. 2 crs & above and below Rs. 5 crs - 1.25% For Subscription of Rs 5 crs & above - Nil Exit Load : Nil. Contingent Deferred Sales Charge: Nil Inter-Scheme Switch: At the applicable loads in the respective scheme/s. No load applicable for switches between the equity/sector specific schemes and Reliance Banking Fund and vice-versa except Reliance NRI Equity Fund Inter Plan/ Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 3 Working days Minimum Redemption Amount : Any amount or any number of units Cut off time : 3:00 p.m. on working days as defined in the Offer Document Recurring Investment Plan (RIP) : Available Regular investment option for corporate employees (RICE) : Available

96

Regular withdrawal Plan (RWP) : Available Trigger Facility : Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Switch Facility : Available Systematic Transfer Plan/ Dividend Transfer Plan : Available Nomination Facility : Available Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : S & P CNX Banks Index Switching Option : Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme (s) that may be launched / managed in future, as per the features of the respective scheme. Recurring Expenses: Investment Management Expenses Operational Expenses Marketing Expenses Total 1.25 % 0.75 % 0.25 % 2. 25%

97

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 Pharma Fund Main Features Type: An Open-ended Pharma Sector Scheme Investment Pattern:
Types of Instruments Minimum Equity & Equity related securities Debt & Money Market Instruments 0% 20% 100% with average Maturity of 5 to 10 years. 0% 0% Asset Allocation (% of Net Assets) Most Likely 80% 20% Maximum 100% 100%

98

Net Asset Value : Calculated & declared every day Plans / Options :
o o o o

Growth Plan : Growth Option Bonus Optiion Dividend Plan : Dividend (Pay-out) Option Dividend (Reinvestment) Option

Application Amount: Rs.5,000/- for Resident Indians and Non-Resident Indians and in multiples of Rs.1/- thereafter for both plans. Min. Additional Investment: Rs.1000/- and in multiples of Rs.1/- , thereafter Portfolio Disclosures: Half yearly Entry (Sales) Load: For Subscriptions Below Rs. 2 crores - 2.25% For Subscriptions of Rs. 2 crores and above and below Rs. 5 crores - 1.25% For Subscriptions of Rs. 5 crores and above - NIL Contingent Deferred Sales Charge : Nil Inter-Scheme Switch : At the applicable loads on the respective schemes. No load applicable for switches between the equity /sector specific schemes and Reliance Pharma Fund and vice-versa except Reliance NRI Equity Fund. Inter Plan/Intern Option Switch: Nil Exit Load: Nil Redemption Cheques Issued: Mutual fund shall endeavour to issue within 3 Working days
99

Minimum Redemption Amount: Any amount Cut off time: 3:00 p.m. on working days as defined in the definitions Recurring Investment Plan (RIP): Available Regular investment option for corporate employees (RICE): Available Regular withdrawal Plan (RWP): Available Trigger Facility: Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Switch Facility : Available Systematic Transfer Plan /Dividend Transfer Plan : Available Benchmark Index : BSE Health care Nomination Facility : Available Mode of Holding : Single, Joint or Anyone or Survivor Switching option : Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme (s) that may be launched / managed in future, as per the features of the respective scheme. Recurring Expenses: Investment Management Expenses Operational Expenses Marketing Expenses Total 1.25% 0.75% 0.25% 2.25%

100

The primary Investment Objective of the Scheme is to seek to generate continuous returns by actively investing in equity / equity related or fixed income securities of Power and other associated companies. Reliance Diversified Power Sector Fund Main Features Type: An Open-ended Power Sector Scheme. Investment Pattern:
Types of Instruments Minimum Equity & Equity related securities Debt & Money Market Instruments 0% 20% 100% with average Maturity of 0% 0% Asset Allocation (% of Net Assets) Most Likely 80% 20% Maximum 100% 100%

101

5 to 10 years.

Net Asset Value: Calculated & declared every day. Plans / Options:
o o o o

Growth Plan : Growth Option Bonus Optiion Dividend Plan : Dividend Pay-out Option Dividend Reinvestment Option

Application Amount : Rs.5,000/- for Resident Indians and Non-Resident Indians and in multiples of Rs.1/- thereafter for both plans. Min. Additional Investment : Rs.1000/- and in multiplies of Rs.1, thereafter for both plans. Portfolio Disclosures : Half-yearly Entry Load : For Subscriptions below Rs.2 crores - 2.25% For Subscriptions of Rs.2 crores and above and below Rs. 5 crores - 1.25% For Subscriptions of Rs.5 crores and above - NIL Exit Load : Nil Contingent Deferred Sales Charge : Nil Inter-Scheme Switch : At the applicable loads on the respective schemes. No load applicable for switches between the equity /sector specific schemes and Reliance Diversified Power Sector Fund and vice-versa except Reliance NRI Equity Fund. Inter Plan/ Inter Option Switch : Nil Redemption Cheques Issued : Mutual Fund shall endeavour to issue within 3
102

Working days Minimum Redemption Amount : Any amount Cut off time : 3.00 p.m. on working days as defined in the Offer Document Recurring Investment Plan (RIP) : Available Regular investment option for corporate employees (RICE) : Available Regular withdrawal Plan (RWP) : Available Trigger Facility : Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Switch Facility: Available. No load applicable for switches between the equity schemes except Reliance NRI Equity Scheme. Systematic Transfer Plan / Dividend Transfer Plan : Available Nomination Facility : Available Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : India Power Index Switching Option : Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme (s) that may be launched / managed in future, as per the features of the respective scheme. Recurring Expenses: Investment Management Expenses : Operational Expenses Marketing Expenses 1.25 % 0.75 % 0.25 %
103

Total :

2.25 %

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. Reliance Media & Entertainment Fund Main Features Type: An Open-ended Media & Entertainment Sector Scheme Investment Pattern: Types of Instruments Asset Allocation (% of Net Assets) Minimum Most Likely Maximum

104

Equity & Equity related securities Debt & Money Market nstruments 0% 20% 100% with average Maturity of 5 to 10 years.

0% 0%

80% 20%

100% 100%

Net Asset Value : Calculated & declared every working day Plans / Options : Growth Plan : Growth Option, Bonus Option. Dividend Plan : Dividend Pay-out Option, Dividend Reinvestment Option. Application Amount : Rs.5,000/- and in multiples of Rs.1 and in multiples of Rs.1/- thereafter for both plans. Min. Additional Investment: Rs.1000/- and in multiple of Rs.1/- thereafter for both plans. Portfolio Disclosures : Half-yearly Entry (Sales) Load : For Subscriptions Below Rs. 2 crores - 2.25% For Subscriptions of Rs. 2 crores and above and below Rs. 5 crores - 1.25% For Subscriptions of Rs. 5 crores and above - NIL Exit Load : Nil Contingent Deferred Sales Charge : Nil Inter-Scheme Switch : At the applicable loads on the respective schemes. No load applicable for switches between the equity /sector specific schemes and Reliance Media & Entertainment Fund and vice-versa except Reliance NRI Equity Fund. Inter Plan/Inter Option Switch: Nil

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Redemption Cheques Issued: Mutual Fund shall endeavour to issue within 3 working days. Minimum Redemption Amount: Any amount Cut off time: 3:00 p.m. on working days as defined in the Offer Document Recurring Investment Plan (RIP): Available Regular investment option for corporate employees (RICE): Available Regular withdrawal Plan (RWP): Available Trigger Facility: Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Switch Facility: Available. Systematic Transfer Plan / Dividend Transfer Plan : Available Nomination Facility : Available Mode of Holding : Single, Joint or Anyone or Survivor Benchmark Index : S&P-CNX Media & Entertainment Index Switching Option : Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme(s) that may be launched / managed in future, as per the features of the respective scheme. Recurring Expenses: Investment Management Expenses Operational Expenses Marketing Expenses 1.25 % 0.75% 0.25%

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Total

2.25%

ANALYSIS NO. Of respondents:-100 Mutual fund investors:-48

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Q1. What are your preferred areas of investment? This question is framed to know what are the preferences of the investors among the options available these days. Fixed Post Real estate 2 Shares Mutual funds 32 Insuranc e 2 Any other 0

deposits office 5

accounts 5 4

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Fixed Post Office Rael Estate Shares Mutual Fund Insurance Any Other

Interpretation: The Market response shows that the people nowadays are more interested in investing Mutual funds then any other area of investment.

Q2. Reasons for investing in the above preferred area: This question was asked to know the basic reason or purpose of the investors investing their savings in different areas. Returns 28 Safety 10 Tax Savings 5 Liquidity 7 Any other 0

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Returns Safety Tax Savings Liquidity Any Other

Interpretation: As per survey, it is observed that the main purpose of investing in Mutual funds is to earn high returns.

Q3. How long have you been investing in Mutual funds? The objective of this question was to know for how long have the person been investing in the mutual funds. Whether he is new investor or an old investor Never 0-1 year 1-3 years 3-5 years 5 years &

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15

10

12

above 6

16 14 12 10 8 6 4 2 0 Never 0-1 Year 1-3 Year 3-5 Year 5 Year & Above Series1

Interpretation: It is observed that investments in mutual funds are recently increased. One of the reason behind this may be, earlier there was lack of awareness among the masses about the mutual funds.

Q4. By what are you inspired to invest into Mutual Funds? This question was aimed at knowing the most influential channel or medium. Advertisements 7 Agents/distributors 27 Friends 2

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Advertisments Agents/Distributors Friends

Interpretation: The Market response shows that the agents and distributors are the main source/ channel for promoting the sale of Mutual funds among the masses.

Q5. Which type of mutual funds you invest in? The aim of this question was to know the preferences of the investors regarding the type of securities/fund they want to invest into. Equity 17 Debt 9 Hybrid 9 Liquidity 7
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Equity Debt Hybrid Liquid

Interpretation: It is observed that most of the investors in Mutual Funds are interested in Investing in Equity market then Debt market. And one of the reasons behind this may be the high return in Equities then Debentures.

Q6. What returns do you expect from the fund? The objective of this question is to know the rate expected by the investor from the fund he has invested in. 5-10% 10-15% 15-25% 25% & above

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18

11

5-10 % 10-15 % 15-25 % 25 & Above

Interpretation: The Market response shows that the investments in Mutual funds are made with the expectation of earning high returns ranging between 15-25%.

Q7. For what period have you invested in Mutual funds? The aim was to know the time horizon for which the investor invests in Mutual Funds. Less than 1 Year 1-2 years 2-3 years 3-5years 5 years & above
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19

12

20 18 16 14 12 10 8 6 4 2 0 Less than 1 Year 1-2 Years 2-3 Years 3-5 Years 5 Years & Above Series1

Interpretation: It is observed that most of the investments in Mutual funds are for short period that may range between 1-2 year.

Q8. Major reasons for investing in mutual funds? Objective was to know the reasons and objectives of investors for which they invest into mutual funds. Attractive Returns Tax Planning Liquidity Diversification

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16

14

14

20 18 16 14 12 10 8 6 4 2 0 Attractive Returns Tax Planning Liquidity Diversification Series1

Interpretation: It is observed that the attractive returns in mutual funds encourage people to invest their money in this sector.

Q9. Which AMC do you prefer among the following? Aim was to get the most popular and efficient AMC among the top 5. Pru ICICI Franklin Reliance HDFC UTI Mutual

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Mutual fund 6

Templeton 3

Mutual fund 19

Mutual fund 2

Fund 12

20 18 16 14 12 10 8 6 4 2 0 Pru ICICI Franklin Templeton Reliance HDFC MF UTI MF Series1

Interpretation: The market response shows that among the top 5 Asset management companies Reliance Mutual fund is the most preferable AMC among the masses and the main reason behind this is the handsome returns enjoyed by the investors in Reliance Mutual fund since last 11 years.

Q10. What par of your income do you invest in mutual funds? This question was framed to know what percentage of income one invests into Mutual funds.

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Less than 5% 18

5-10% 15

10 % & above 9

20 18 16 14 12 10 8 6 4 2 0 Less Than 5 % 5-10 % 10 % & Above Series1

Interpretation: It is observed that the people used to invest a very small portion of their income in Mutual funds and the main reason behind this may be the fear of loss of money in the Equity market or it may be due to lack of awareness among the masses about the Concept of Mutual funds.

Q11. What is your risk appetite? The objective was to know the risk tolerance level of the investors. Very Aggressive Moderate Cautious Very
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Aggressive 6

17

Cautious 5

Very Aggressive Aggressive Moderate Cautious Very Cautious

Interpretation: It is observed that most of the investors in Mutual funds are of Aggressive nature.

Q12. What is your age group? Objective was to know which age group is most inclined to mutual funds. Less than 20 years 1 20-30 years 13 30-40 years 9 40-50 years 11 50 years & above 12

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14 12 10 8 6 4 2 0 Less than 20 years 20-30 years 30-40 years 40-50 years 50 years & above Series1

Interpretation: It is observed that the Younger people between the age of 20-30 year are more interested in investing in mutual funds then the old age people, and one of the reason behind this may be the high risk tolerance capacity in younger group then the old age group.

Findings and Suggestions Generally the projection of investors about the stock market (in which mutual fund invest) is as a speculative markets. So the investor hardly wants to invest in mutual funds. So government should project the stock market as a long term investment.

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Mutual funds are not so popular among the masses so advertisement should be increased to popular the mutual fund. The various mutual funds should be characterized in such a manner that the requirement of an individual can be fulfilled. There should be proper trade off between risk and return in mutual fund as till now there is more risk in mutual fund that is why people are investing their money more in post offices and banks so we should try to reduce that risk. The investors are satisfied with services provided by Reliance Mutual fund so they should also try their best to maintain this level of quality of service.

Mutual funds one of the main strength is its liquidity position that is we can withdraw our money at any time so we should try to bring this thing in front of people.

BIBLIOGRAPHY MUTUAL FUND INSIGHT COMPANY BROUCHERS COMPANY BOOKLETS

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FACTSHEETS OF THE MONTH OF JUNE. Website www.reliancemutual.com

www.amfiindia.com www.valueresearchonline.com

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