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INTRODUCTION

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INTRODUCTION TO MUTUAL FUND
Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus “Mutual”, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. A Mutual Fund is an investment tool that allows small investors access to a well-diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.

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When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. Any change in the value of the investments made into capital market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors. 3

ADVANTAGES OF MUTUAL FUND • • • • • • • • • Portfolio Diversification Professional management Reduction / Diversification of Risk Liquidity Flexibility & Convenience Reduction in Transaction cost Safety of regulated environment Choice of schemes Transparency

DISADVANTAGE OF MUTUAL FUND • • • • No control over Cost in the Hands of an Investor No tailor-made Portfolios Managing a Portfolio Funds Difficulty in selecting a Suitable Fund Scheme

Mutual funds can be classified as follow: Based on their structure: Open-ended funds: Investors can buy and sell the units from the fund, at any point of time. 4

most of the New Fund Offers of close-ended funds provided liquidity window on a periodic basis such as monthly or weekly. Therefore.. If the fund is listed on a stocks exchange the units can be traded like stocks (E.• Close-ended funds: These funds raise money from investors only once. Redemption of units can be made during specified intervals.g. Recently. such funds have relatively low liquidity. RISK V/S. Morgan Stanley Growth Fund). fresh investments can not be made into the fund. after the offer period. RETURN: 5 . Therefore.

The investors.The entire mutual fund industry operates in a very organized way. The objective of the investment should match with the objective of the fund to best suit the investors’ needs. handover their savings to the AMCs under various schemes. The return generated from the investments is passed on to the investors or reinvested as mentioned in the offer document. 6 . The AMCs further invest the funds into various securities according to the investment objective. it’s very important to know the area in which mutual funds works. the basic understanding of stocks and bonds. known as unit holders. Before we understand what is mutual fund.

Stocks : Stocks represent shares of ownership in a public company. and in return you can receive interest on your invested amount. investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. What Is Mutual Fund A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in. which is back over predetermined amounts of time. 7 . but the majority of mutual funds invest in stocks and/or bonds. Examples of public companies include Reliance. real estate. by minimizing risk & maximizing returns. Bonds : Bonds are basically the money which you lend to the government or a company. you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. There are many other types of investments other than stocks and bonds (including annuities. But the biggest advantage to mutual funds is diversification. When you invest in a mutual fund. and precious metals). ONGC and Infosys. Bonds are considered to be the most common lending investment traded on the market. thus by pooling money together in a mutual fund. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). Stocks are considered to be the most common owned investment traded on the market.

The flow chart below describes broadly the working of a mutual fund 8 . professionally managed basket of securities at a relatively low cost.Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified.

The investor can align his own investment needs with the funds objective and invest accordingly. 9 . are a mix of both equity and debt funds. which is pre-defined in the objectives of the fund. Equity part provides growth and the debt part provides stability in returns. These schemes aim to provide investors with the best of both the worlds. Each category of funds is backed by an investment philosophy. They invest in both equities and fixed income securities. Further the mutual funds can be broadly classified on the basis of investment parameter viz.Balanced funds: As the name suggest they. which are in line with pre-defined investment objective of the scheme.

Guidelines of the SEBI for Mutual Fund Companies : 10 .

two thirds of the directors of Trustee Company or board of trustees must be independent. SEBI formulates policies and regulates the mutual funds. registered with SEBI. rent agreement. voter id. Offer document: An offer document is issued when the AMCs make New Fund Offer(NFO). Proof of address (any of the following ) :latest telephone bill. disclosure. Its objective is to increase public awareness of the mutual fund industry. An 11 offer document consists of the following: . driving license. latest electricity bill. According to SEBI Regulations. transparency etc. Custodian. ration card. AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas such as valuation. Documents required (PAN mandatory): Proof of identity : 1. Photo PAN card 2. holds the securities of various schemes of the fund in its custody. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. In case of non-photo PAN card in addition to copy of PAN card any one of the following: driving license/passport copy/ voter id/ bank photo pass book. Passport. latest bank passbook/bank account statement. The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds function within the strict regulatory framework.To protect the interest of the investors. Its advisable to every investor to ask for the offer document and read it before investing. SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of securities. latest Demat account statement.

OBJECTIVE OF THE STUDY 12 .

Objective serves as torchlight in a project. Thus in order to make sure that the proper survey ensures defining clear-cut objective and outline is a prerequisite. It lays down a well-defined path between start and the end and that is the goal. As also an objective is well defined and it is important for the research study that a scholar undergoes. a purpose. The objective of our study is:1) To know the various functions which are conducted for day-to-day operations in Reliance Money. It represents a fact having actual existence of outside the mind or a goal for which the study is to be conducted. which is directed to a person to conduct a study. 13 .OBJECTIVES OF THE STUDY It is said that an objective well defined is half done. It is an action.

3) To know the various products and services rendered to its customers. 6) To know how the branch functions in terms of sales and operations.2) To know the various norms adopted by Reliance Money. 4) To know whether the services provided by Reliance Money is able to attain its customer’s satisfaction or not. 5) To find and try to bridge the gap between the expectations and experiences of the customers in case of dissatisfaction. SCOPE OF THE STUDY 14 .

SCOPE OF THE STUDY A big boom has been witnessed in Mutual Fund Industry in resent times. I surveyed on my Project Topic “A study of preferences of the Investors for investment in Mutual Fund” on the visiting customers of the Reliance Boring Canal Road Branch. I had been sent at one of the branch of State Bank of India Moradabad where I completed my Project work. The research was carried on in Moradabad. A large number of new players have entered the market and trying to gain market share in this rapidly improving market. 15 .

This project report may help the company to make further planning and strategy. mode of investment. option for getting return and so on they prefer. portfolio.The study will help to know the preferences of the customers. LITERATURE REVIEW 16 . which company.

the monopoly of the market had seen an ending phase. Though the growth was slow. Before. The private sector entry to the fund family raised the Aum to Rs. both qualities wise as well as quantity wise. 1540 billion. In the past decade. it reached the height if Rs. Indian mutual fund industry had seen a dramatic improvement. 17 . 470 billion in March 1993 and till April 2004. at the initiative of the Government of India and Reserve Bank.LITERATURE REVIEW The mutual fund industry in India started in 1963 with the formation of Unit Trust of India. the Assets Under Management (AUM) was Rs67 billion. but it accelerated from the year 1987 when non-UTI players entered the Industry.

RELIANCE Mutual Fund was the first non. 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. Indian Bank Mutual Fund (Nov 89). public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). Punjab National Bank Mutual Fund (Aug 89). First Phase – 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India.6.47. LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. Bank of India (Jun 90). Each phase is briefly described as under. The first scheme launched by UTI was Unit Scheme 1964. Bank of Baroda Mutual Fund (Oct 92).004 crores. Second Phase – 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non.At the end of 1993.The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund industry can be broadly put into four phases according to the development of the sector. the mutual fund industry had assets under management of Rs. At the end of 1988 UTI had Rs.700 crores of assets under management.UTI. Third Phase – 1993-2003 (Entry of Private Sector Funds) 18 .UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87).

under which all mutual funds. following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. the Unit Trust of India (UTI). The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. consolidation and growth. which manage assets of Rs. It is registered with SEBI and functions under the Mutual Fund Regulations.805 crores. The era between 1963 and 1987 marked the existance of only one mutual fund company in India with Rs. 2004. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. there were 33 mutual funds with total assets of Rs. Mutual Fund Companies in India The concept of mutual funds in India dates back to the year 1963. by the end of its monopoly era. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs. assured return and certain other schemes The second is the UTI Mutual Fund Ltd.1993 was the year in which the first Mutual Fund Regulations came into being.21. 67bn assets under management (AUM). sponsored by RELIANCE. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. Fourth Phase – since February 2003 In February 2003. As at the end of September. 1. As at the end of January 2003.153108 crores under 421 schemes. there were 29 funds. BOB and LIC.29. 19 . except UTI were to be registered and governed. PNB. the assets of US 64 scheme.835 crores as at the end of January 2003. representing broadly.

the total assets rose up to Rs. the total AUM of the industry was Rs. 470. Major Mutual Fund Competing Companies of Reliance • ABN AMRO Mutual Fund 20 .04 bn. 1995 as Reliance Capital Mutual Fund which was changed on March 11. 1218.Kothari Pioneer was the first private sector mutual fund company in India which has now merged with Franklin Templeton. The succeeding decade showed a new horizon in Indian mutual fund industry. Canbank Mutual Fund.05 bn. The new entries of mutual fund companies in India were SBI Mutual Fund. Just after ten years with private sector players penetration. It was registered on June 30. The private sector funds started penetrating the fund families. 1882. Punjab National Bank Mutual Fund. Indian Bank Mutual Fund. Bank of India Mutual Fund.By the end of the 80s decade. 2004. few other mutual fund companies in India took their position in mutual fund market. The regulations were further given a revised shape in 1996. In the same year the first Mutual Fund Regulations came into existance with re-registering all mutual funds except UTI. Reliance Mutual Fund was formed for launching of 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 sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the Trustee. • Reliance Mutual Fund Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act. By the end of 1993. Today there are 33 mutual fund companies in India.

the US. was incorporated on November 4. Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund. 2004 with ABN AMRO Trustee (India) Pvt. Japan. BOB Asset Management Company Limited is the AMC of BOB Mutual Fund and was incorporated on November 5. HSBC Mutual Fund acts as the Trustee Company of HSBC Mutual Fund. • ING Vysya Mutual Fund 21 . 2000 with two sponsorers nemely Housing Development Finance Corporation Limited and Standard Life Investments Limited. 10. 1992. Deutsche Bank AG is the custodian.ABN AMRO Mutual Fund was setup on April 15. Sun Life Financial is a golbal organisation evolved in 1871 and is being represented in Canada. • Birla Sun Life Mutual Fund Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. 2002 with HSBC Securities and Capital Markets (India) Private Limited as the sponsor. Board of Trustees. Ltd. Birla Sun Life Mutual Fund follows a conservative long-term approach to investment. Indonesia and Bermuda apart from India. The AMC. ABN AMRO Asset Management (India) Ltd.000 crores • Bank of Baroda Mutual Fund (BOB Mutual Fund) Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30. 2003. • HDFC Mutual Fund HDFC Mutual Fund was setup on June 30. Recently it crossed AUM of Rs. • HSBC Mutual Fund HSBC Mutual Fund was setup on May 27. as the Trustee Company. 1992 under the sponsorship of Bank of Baroda. the Philippines.

The investment 22 .500 Crores as AUM. State Bank of India Mutual Fund has more than Rs. The Trustee Company formed is Prudential ICICI Trust Ltd. Prudential Plc. and the AMC is Prudential ICICI Asset Management Company Limited incorporated on 22nd of June. one of the largest life insurance companies in the US of A. • State Bank of India Mutual Fund State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshor fund. • Sahara Mutual Fund Sahara Mutual Fund was set up on July 18. Today it is the largest Bank sponsored Mutual Fund in India. • Tata Mutual Fund Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act. Now it has an investor base of over 8 Lakhs spread over 18 schemes. as the sponsor. Ltd. was incorporated on April 6. 5. They have already launched 35 Schemes out of which 15 have already yielded handsome returns to investors. The AMC. 1996 with Sahara India Financial Corporation Ltd. 1999 with the same named Trustee Company. Prudential ICICI Mutual Fund was setup on 13th of October. It is a joint venture of Vysya and ING. approximately. The sponsor for Tata Mutual Fund are Tata Sons Ltd. Sahara Asset Management Company Private Limited incorporated on August 31. ING Investment Management (India) Pvt. of America. 1993.ING Vysya Mutual Fund was setup on February 11. 1995 works as the AMC of Sahara Mutual Fund. 225 cr. the India Magnum Fund with a corpus of Rs. The paid-up capital of the AMC stands at Rs 25. and Tata Investment Corporation Ltd. and ICICI Ltd. 1993 with two sponsorers.. • Prudential ICICI Mutual Fund The mutual fund of ICICI is a joint venture with Prudential Plc. 1882. 1998.8 crore.

Income Funds. Asset Management Funds. Tata Asset Management Limited's is one of the fastest in the country with more than Rs. Frnaklin Templeton Investments is a California (USA) based company with a global AUM of US$ 409.99.703 crores (as on April 30. Kotak Mahindra Mutual Fund offers schemes catering to investors with varying risk . • Standard Chartered Mutual Fund Standard Chartered Mutual Fund was set up on March 13. (as of April 30. State Bank of India (SBI).20000 Crore. UTI Asset Management Company presently manages a corpus of over Rs.return profiles. 2005) of AUM. Limited. • Kotak Mahindra Mutual Fund Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. Equity Funds and Balance Funds. KMAMC started its operations in December 1998. • Unit Trust of India Mutual Fund UTI Asset Management Company Private Limited. Punjab National Bank (PNB). 7.manager is Tata Asset Management Limited and its Tata Trustee Company Pvt. It is presently having more than 1.818 investors in its various schemes. It was the first company to launch dedicated gilt scheme investing only in government securities. Investors can buy or sell the Mutual Fund through their 23 . 2005). and Life Insurance Corporation of India (LIC). established in Jan 14.2 bn. It is one of the largest financial services groups in the world.Ltd. The sponsorers of UTI Mutual Fund are Bank of Baroda (BOB). Index Funds. 2000 sponsored by Standard Chartered Bank. 2003. The Trustee is Standard Chartered Trustee Co. • Franklin Templeton India Mutual Fund The group. manages the UTI Mutual Fund with the support of UTI Trustee Company Privete Limited. The schemes of UTI Mutual Fund are Liquid Funds.Pvt.

the Alliance Capital Asset Management India (Pvt) Ltd. • Morgan Stanley Mutual Fund India Morgan Stanley is a worldwide financial services company and its leading in the market in securities. Closed end Income schemes and Open end Fund of Funds schemes to offer. corporations. Open end Income and Liquid schemes. Open end Hybrid schemes. and AMC. In India it is known as Morgan Stanley Investment Management Private Limited (MSIM India) and its AMC is Morgan Stanley Mutual Fund (MSMF). This is the first close end diversified equity scheme serving the needs of Indian retail investors focussing on a long-term capital appreciation. investmenty management and credit services. pension funds and nonprofit organisations. • Escorts Mutual Fund Escorts Mutual Fund was setup on April 15. Its AMC was incorporated on December 1. Ltd. 1994 with Alliance Capital Management Corp. Open end Sector Equity schemes. Morgan Stanley Investment Management (MISM) was established in the year 1975. They have Open end Diversified Equity schemes. The Trustee is ACAM Trust Company Pvt. Its services are also extended to high net worth individuals and retail investors. • Alliance Capital Mutual Fund Alliance Capital Mutual Fund was setup on December 30.financial advisor or through mail or through their website. It provides customized asset management services and products to governments. of Delaware (USA) as sponsorer. 1996 with Escorts Finance Limited as its sponsor. The Trustee Company is Escorts Investment Trust Limited. Open end Tax Saving schemes. with the corporate office in Mumbai. • Benchmark Mutual Fund 24 . 1995 with the name Escorts Asset Management Limited.

4% during the rest of the decade. Canbank Investment Management Services Ltd.Benchmark Mutual Fund was setup on June 12. Future of Mutual Funds in India By December 2004.50. 1987 with Canara Bank acting as the sponsor. The Company started its business on 29th April 1994. • Canbank Mutual Fund Canbank Mutual Fund was setup on December 19. is the AMC. Some facts for the growth of mutual funds in India 25 . 1993 is the AMC.537 crore. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management Company Ltd as the Investment Managers for LIC Mutual Fund.90. • LIC Mutual Fund Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. 2001 with Niche Financial Services Pvt. LIC Mutual Fund was constituted as a Trust in accordance with the provisions of the Indian Trust Act. It contributed Rs. The Corporate Office of the AMC is in Mumbai. 2000 and headquartered in Mumbai. Ltd. Ltd. In the last 5 years we have seen annual growth rate of 9%. 1882. It is estimated that by 2010 March-end. The annual composite rate of growth is expected 13. by year 2010. According to the current growth rate. 2 Crores towards the corpus of the Fund. Benchmark Asset Management Company Pvt. as the Trustee Company. incorporated on March 2. Ltd. the total assets of all scheduled commercial banks should be Rs 40. as the sponsorer and Benchmark Trustee Company Pvt. Indian mutual fund industry reached Rs 1. Incorporated on October 16.000 crore. mutual fund assets will be double.

Soon they will find scope in the growing cities. • Our saving rate is over 23%. with over US$1trillion assets under management worldwide. Only channelizing these savings in mutual funds sector is required. Today most of the mutual funds are concentrating on the 'A' class cities. • We have approximately 29 mutual funds which is much less than US having more than 800. • Number of foreign AMC's are in the que to enter the Indian markets like Fidelity Investments. • Emphasis on better corporate governance. US based. There is a big scope for expansion. • Introduction of Financial Planners who can provide need based advice. 26 . • 'B' and 'C' class cities are growing rapidly. • Trying to curb the late trading practices.• 100% growth in the last 6 years. • SEBI allowing the MF's to launch commodity mutual funds. • Mutual fund can penetrate rurals like the Indian insurance industry with simple and limited products. highest in the world.

COMPANY PROFILE 27 .

COMPANY PROFILE 28 .

RELIANCE INDUSTRIES LIMITED 29 .

Business got a boost as a result of the Great Chicago Fire of 1871. Reliance's international consulting group contains several subsidiaries in energy. constituted the investment branch of the Reliance conglomerate. A financial arm invests in other businesses. which became Reliance Development Group. environment. and natural resources consulting.The association soon developed a field of agents to write policies across the country. which increased gradually to $10 in 1876. Reliance Capital Group. shareholders received dividends twice a year of $5 a share. organized by 5 hose and 11 engine fire companies. Inc. For the first two years. primarily television stations.Reliance Group Holdings has grown from a small office data-processing equipment firm in 1961 into a major insurance and financial-services group in one generation under one chief. It became the nation's first association of volunteer fire departments. the company moved into real estate. the Reliance insurance group divided its pool so that Reliance Insurance Company and its subsidiaries handled most standard lines. In 1977. The parent company also includes a development subsidiary in commercial real estate. This division handled all real estate operations of the parent company and other subsidiaries. while United Pacific Insurance Company handled the nonstandard and other operations.P. L. Reliance's insurance operations constitute the nation's 27th-largest property and casualty operation. Reliance Insurance started as the Fire Association of Philadelphia in 1817. 30 . forming Continental Cities Corporation. In 1972.

31 . polymer intermediates. parent company of Days Inn of America. The company notched up a healthy growth of Rs. A sharp rise infixed maturity plans (FMPs) and collection of Rs.73 billion) and an investor base of over6. polyester filament yarn.6 million (Source:www. 7000 crore (US$ 1.354 crore(US$ 4. 565. 90. Reliance Capital sold its investment..75 billion) through new fund offers (NFOs) created this surge. Reliance continues to be in the number one spot.938 crore(US$ 22.In December 1989.09 billion)in assets under management in February2008 and helped propel the total industry-wide AUM to Rs. The petrochemicals segment includes production and marketing operations of petrochemical products namely.This mega business houses show that it has assetsunder management ofRs. High and Low density Polyethylene.36 billion)(Source: indiainvestments. Days Corporation. it had been purchased in 1984. textiles. which holds 93.amfiindia. the world's third-largest hotel chain. The refining segment includes production and marketing operations of the Petroleum refinery. 16. The Group's principal activity is to produce and distribute plastic and intermediates.37% of the paid-up capital of RCAM.Reliance’s mutual fund schemes are managed by Reliance Capital Asset Management Limited(RCAM).459 crore (US$ 141. Reliance Industries Limited. a subsidiary of Reliance Capital Limited. oil and gas. chemicals. RELIANCE MUTUAL FUND This group dominates this key area in the financial sector. In AU rankings. fibre intermediates.com). crackers.com).

To meet the erratic demand of the financial market. a mutual fund company called the Reliance Mutual Fund is making waves. Reliance is considered India's best when it comes to mutual funds. The Anil Dhirubhai Ambani Group owns Reliance. they are the fastest growing investment company in India so far. It is their goal to become respected globally for helping people achieve their financial dreams through excellent organization governance and customer care. Reliance Capital Asset Management Limited ranks in the top 3 of India's banking companies and financial sector in terms of net value. Its investors number to 4. RMF aims to do business lawfully and without stepping on other people. Today. Mutual funds are fast becoming the mode of investment in the world. They want to be able to create portfolios that will ensure the liquidity of the investment of people in India as 32 .6 billion people. They show their dedication by continually dishing out innovative offerings and unparalleled service initiatives. Reliance Mutual fund wants a high performance environment that is geared at making investors happy. In India. Reliance Mutual Fund designed a distinct portfolio that is sure to please potential investors. Reliance Capital Asset Management Limited manages RMF. Vision And Mission Reliance Mutual Fund is so popular because it is investor focused. a lot of countries are waking up to the reality that in order to gain financial growth. they must encourage their citizens to not only save but also invest.India's Best Offering: Reliance Mutual Fund Investing has become global.

and bonds. Debt/Income Scheme. and Sector Specific Scheme. Although RMF is gaining good ground in the financial market. Providing steady and regular income is one of the Debt/Income Scheme's primary goals. The major part of the investment is on equities and they have fairly high risks. The scheme gives the investors varying options like. then Reliance Mutual Fund is not for you. GROWTH OF RELIANCE MONEY THROUGH RECOGNITION 33 . Reliance Mutual Fund also wants to make sure that their shareholders realize reasonable profit. corporate debentures fixed income securities. Taking appropriate risks to reach the company's potential is also one of Reliance Mutual Fund's objectives. capital augmentation or dividend preference.well as abroad. So. The choices are not deadlocked because if you want you may change the options later on. Compared to diversified funds this is a lot more risky and you will need to really give your time on observing the market. The Debt/Income scheme has in its portfolio government securities. i. Debt/Income Scheme. returns on Sector Specific Scheme are dependent on the performance of the industry at which your money is invested upon. Reliance Mutual Fund created proposals called The Equity/ Growth scheme. remember that they are a risk taking bunch. if you are faint hearted. Schemes To make their packages more attractive. They give higher profit because they take a lot of risks. and Sector Specific Scheme. by deploying funds wisely. The Equity/ Growth scheme give medium to long term capital increase.

Ranked 26th within the refining industry.Growth through Recognition Reliance has merited a series of awards and recognitions for excellence for businesses and operations. Featured among top 50 companies with the biggest increase in Revenues. Among the top 25 climbers for two years in a row. • • • • • Ranked 269th in 2007 having moved up 73 places from the previous year. Corporate Ranking and Ratings: Reliance featured in the Fortune Global 500 list of ‘World’s Largest Corporations’ for the fourth consecutive year. an apex hydrocarbon industry association. 34 . Featured as one of the world’s Top 200 companies in terms of Profits. Reliance is ranked 182nd in the FT Global 500 (up from previous year’s 284th rank). conferred the Petro Fed 2007 awards in the categories of “Refinery of the Year” and “Exploration & Production Company of the Year”. • Petro Fed.

• Brand Reliance was conferred the “Bronze Award” at The Buzziest Brands Awards 2008.2007” by Institute of Directors. HEALTH:• Jamnagar Manufacturing Division was conferred the “Golden Peacock Award for Occupational Health & Safety . 35 . • Chemtech Foundation conferred the “Outstanding Achievement . organized by agencyfaqs! • Institute of Economic Studies conferred the “Udyog Ratna” award in October 2007 for contributions to the industry. • Chemtech Foundation conferred the “Hall of Fame” in February 2008 for sterling contributions to the industry. • Jamnagar Manufacturing Division was conferred the “ICC Award for Water Resource Management in Chemical Industry”. Petroleum Federation of India conferred the “Refinery of the Year Award . • Jamnagar Manufacturing Division was conferred the “Good House Keeping Award” from Baroda Productivity Council.PLEXCOUNCIL Export Award” in the category of Plastic Polymers for the year 2006-2007 was awarded to Reliance being the largest exporter in this category.2007” to Jamnagar Manufacturing Division • “The Plastics Export Promotion Council .Oil Refining” for work at the Jamnagar Manufacturing Division.

Nagothane Manufacturing Division received the “Shrishti G-Cube Award for Good Green Governance” from Minister for Commerce and Industry. • Dahej Manufacturing Division received “BSC 5-Star” rating from British Safety Council. • Hoshiarpur Manufacturing Division bagged the First Prize in “Safety in Punjab”. Gujarat State for the recognition of safety performance at the 29th State Level Annual Safety Conference. • Hazira Manufacturing Division received the “TERI Corporate Environmental Award (Certificate of Appreciation)” for PET recycling project. • Patalganga Manufacturing Division won the “Gold Medal at CASHe (Change Agents for Safety. • Kurkumbh Manufacturing Division won the “Greentech Safety Award silver trophy” for outstanding achievement in safety management in chemical sector.• Jamnagar Manufacturing Division was conferred the “BEL-IND” Award for the best scientific paper at the 58th National Conference of Occupational Health. on World Earth Day. UK. Training and Development:36 . organized by Punjab Safety Council. State of Orissa. • Dhenkanal Manufacturing Division received the “2nd Prize for Longest Accident Free Period” from the Hon’ble Minister of Labour. It also won the III Prize in Process Management category for Presentation on Safety through Design in chemical process industry in Petrosafe 2007 Conference. • Naroda Manufacturing Division was conferred the “Safety Award and Certificate of Appreciation” presented by Gujarat Safety Council & Directorate of Industrial Safety & Health. Health and Environment) Conference”.

• Jamnagar Refinery was adjudged the winner of the “Golden Peacock National Training Award -2007”. • Patalganga Manufacturing Division won the First Prize in “Energy Conservation in State of Maharashtra” organized by Maharashtra Energy Development Agency (MEDA).com Jobseekers’ Employer of Choice Award. Ministry of Power & Natural Gas for the excellent performance in reduction/elimination of steam leaks in the plant. 37 . • Patalganga Manufacturing Division won the “ASTD (American Society for Training & Development) Excellence in Practice Award” for innovative practice titled Learning Function’s role as Business partner: Empowering people with Knowledge to achieve Business Goals. • Hazira Manufacturing Division won the Government of India Energy Conservation Award (2007) conferred by the Bureau of energy efficiency and Ministry of Power. Energy Excellence:• Exploration & Production (E&P) Division won “The Infraline Energy Excellence Awards 2007: Hydrocarbon Columbus Award for Excellence in Petroleum Exploration”. • Jamnagar Manufacturing Division was the recipient of the “Infraline Energy Award2007” by Ministry of Power. • Jamnagar Manufacturing Division won the “Oil & Gas Conservation Award -2007” from the Centre for High Technology. Reliance won the CNBC TV-18 instituted Jobstreet.

The Company’s manufacturing divisions at Vadodara and Hazira were honoured with CII-National award for excellence in water management . Quality:• For the first time ever.2007 as water efficient unit in “Within the fence” category.97% by M/s. • Vadodara Manufacturing Division’s Polypropylene-IV (PP-IV) plant was conferred the “Spheripol Process Operability Award-2006” for the highest operability rate with an on stream factor 98. Hazira Manufacturing Division was honoured as water efficient unit “Beyond the Fence” category. which recognizes extraordinary results in improvement and innovation. Ministry of Power. was won by Hazira Manufacturing Division for its Small Group Activity Project. Government of India. Italy. Additionally. Allahabad Manufacturing Division won the “Excellent Category Award” at National Convention of Quality Circle (NCQC) . globally. This division also received the 2nd prize in “National Energy Conservation Award –2007” from Bureau of Energy efficiency.• Hazira Manufacturing Division was adjudged “Excellent Energy Efficient Unit” at Energy Summit .07. • “QUALTECH PRIZE 2007”. 38 . Vadodara Manufacturing Division received the CII award for “Excellence in Energy Management .2007 by CII. a petrochemical company bagged the “Deming Prize for Management Quality”. BASELL. “The Quality Control Award for Operations Business Unit 2007” was awarded to the Hazira Manufacturing Division for Outstanding Performance by Practicing Total Quality Management.2007” as energy efficient unit.

39 . Technology. • Barabanki Manufacturing Division won the 3rd prize in “All India Six Sigma case study contest 2008” for the Case study on “Reduction of waste of Plant 2 from 16% to 8%”. • Hoshiarpur Manufacturing Division won the 2nd prize in “Six Sigma competition at National Level” organized by ISI and Quality Council of India (in manufacturing category). Vadodara Manufacturing Division’s Six Sigma project won the 1st prize as the “Best Six Sigma project” at National level by CII. R&D and Innovation:• Vadodra Manufacturing Division’s R&D bagged an award from Indian Institute of Chemical Engineers for Excellence in Process / Product Development for the work on “Eco friendly Process for Acetonitrile Recovery”. • Patalganga Manufacturing Division’s Six Sigma Project on Improve Transfer Efficiency for Automatic winders in PFY won the 2nd Prize for “Best design for Six Sigma Project in International Six Sigma Competition” organized by IQPC (International Quality and Productivity center).Six-Sigma:• Lean Six sigma project on “Reducing retention time of caustic soda lye tankers at Jamnagar” won the 1st prize in the national level competition held by Indian Statistical Institute (ISI). • “DSIR National Award for R&D Efforts in Industry (2007)” was conferred on Hazira Manufacturing Division for the Cyclehexane Recovery Project. while Dhenkanal and Barabanki Manufacturing Divisions won the 3rd prize.

“CTO Forum Hall of Fame Award” for the best CIOs in India for not only providing service to their 40 . • “Ones to Watch . • “CIO Excellence Award” for Chemical Industry Information Technology Forum for exemplary Information Technology implementation amongst global chemical companies. • “The Skoch Challenger Award” conferred for the best IT Head (managing the most IT enabled organization) of the Year 2007. for figuring among the top 20 organizations fostering excellence in IT team. by PC Quest for Knowledge Management Systems portal (KMS).2007” for its Cyclohexane Recovery Process. Hazira Manufacturing Division won the “Golden Peacock Innovation Award .• Patalganga Manufacturing Division’s Project titled Augmentation of ETP and use of biogas in Fired heaters won the “Best Innovative Project” from CII.CIO . • “Best IT Implementation Award”. Information Technology:• “CIO of the Year Award” for the best IT-enabled organization in India for the Year 2007. • Reliance bagged the “Innovation Award at Tech Converge 2007” for innovative developments in short-cut fibres.USA Award”.

PRODUCT PROFILE 41 .

PRODUCT PROFILE 42 .

CATEGORIES OF MUTUAL FUND: 43 .

even losses. such funds show volatile performance.100% of the capital is invested in equities spreading across different sectors and stocks. etc. The investors must indicate the option in the application form. generally smoothens out in the long term. equities have outperformed all asset classes in the long term.it is similar to the equity diversified funds except that they invest in companies offering high dividend yields. At the same time. With fluctuating share prices. thereby offering higher returns at relatively lower volatility. ii) Equity diversified funds. capital appreciation. It can be further classified as: i) Index funds. investment in equity funds should be considered for a period of at least 3-5 years. iii|) Dividend yield funds. and the investors may choose an option depending on their preferences. Such schemes normally invest a major part of their corpus in equities. Equity funds: These funds invest in equities and equity related instruments. such funds can yield great capital appreciation as. Such funds have comparatively high risks. 44 .Equity/Growth Schemes The aim of growth funds is to provide capital appreciation over the medium to longterm. short term fluctuations in the market. historically. Hence. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weightages.In this case a key stock market index. like BSE Sensex or Nifty is tracked. However. The mutual funds also allow the investors to change the options at a later date. These schemes provide different options to the investors like dividend option.

and money market instruments such as certificates of deposit (CD).iv) Thematic funds. Put your money into any of these debt funds depending on your investment horizon and needs. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. Debt fund: They invest only in debt instruments.Invest in short-term debt papers. and are a good option for investors averse to idea of taking risk associated with equities. ii) Gilt funds ST. cements sectors etc. construction. vi) ELSS. debentures. v) Sector funds. they invest exclusively in fixedincome instruments like bonds. e. they fall between equity and debt funds. Government of India securities.g. 45 .g.They invest 100% of their portfolio in government securities of and Tbills.A banking sector fund will invest in banking stocks. -An infrastructure fund invests in power.These funds invest 100% in money market instruments. on the risk-return ladder. remaining in debt. Therefore.Equity Linked Saving Scheme provides tax benefit to the investors. commercial paper (CP) and call money.Invest 100% of the assets in sectors which are related through some theme.e. a large portion being invested in call money market. ii) Equity-oriented funds -Invest at least 65% in equities. Balanced fund: Their investment portfolio includes both debt and equity. As a result. i) Liquid funds. Following are balanced funds classes: i) Debt-oriented funds -Investment below 65% in equities. . iii) Floating rate funds . Floaters invest in debt instruments which have variable coupon rate.Invest 100% of the capital in a specific sector.

They generate income through arbitrage opportunities due to mispricing between cash market and derivatives market. derivatives and money markets. vi) Income funds LT. Return Equity Bonds Co. such funds invest a major portion of the portfolio in longterm debt papers.iv) Arbitrage fund.Typically. in the absence of arbitrage opportunities. Higher proportion (around 75%) is put in money markets. FDs Bank Deposits PPF Life Insurance Gold Real Estate Mutual Funds High Moderate Moderate Moderate Low Moderate Low Moderate High High Safety Low High Moderate Low High High High High Moderate High Volatility High Moderate Moderate Low Low Low Low Moderate High Moderate Liquidity High Moderate Low Low High Moderate Low Moderate Low High Convenienc e Moderate High Low Moderate High High Moderate Gold Low High 46 . vii) MIPs.fixed monthly plans invest in debt papers whose maturity is in line with that of the fund. Debentures Co.Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30% to equities. Funds are allocated to equities. viii) FMPs. v) Gilt funds LT.They invest 100% of their portfolio in long-term government securities.

Petroleum stocks. e. 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. corporate debentures. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum. Such schemes generally invest in fixed income securities such as bonds. The investor gets fewer units when the NAV is high and more units when the NAV is low. 1. This is called as the benefit of Rupee Cost Averaging (RCA) 2. Investors need to keep a watch on the 47 . However.Debt/Income Schemes The aim of income funds is to provide regular and steady income to investors. Pharmaceuticals. to an equity scheme of the same mutual fund. etc. at a fixed interval. However. Software. While these funds may give higher returns.g. they are more risky compared to diversified funds. The NAVs of such funds are affected because of change in interest rates in the country. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a month. long term investors may not bother about these fluctuations. Fast Moving Consumer Goods (FMCG). Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month. Government securities and money market instruments. Payment is made through post dated cheques or direct debit facilities. NAVs of such funds are likely to increase in the short run and vice versa. opportunities of capital appreciation are also limited in such funds. If the interest rates fall. The returns in these funds are dependent on the performance of the respective sectors/industries. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. 3.

RESEARCH METHODOLOGY 48 . They may also seek advice of an expert.performance of those sectors/industries and must exit at an appropriate time.

analyzing the required information data and providing an alternative solution to the problem . and primary data has been collected by interacting with various people. from 3 rd June to 30th July 2011. 49 . Duration of Study: The study was carried out for a period of two months. Data sources: Research is totally based on primary data.RESEARCH METHODOLOGY This report is based on primary as well secondary data. collecting. Secondary data can be used only for the reference. The secondary data has been collected through various journals and websites.It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones. Research has been done by primary data collection. One of the most important users of research methodology is that it helps in identifying the problem. however primary data collection was given more importance since it is overhearing factor in attitude studies.

 Sample size: The sample size of my project is limited to 100 people  Sample design: Data has been presented with the help of bar graph. pie charts. irrespective of them being investors or not or availing the services or not. by formal and informal talks and through filling up the questionnaire prepared. It was also collected through personal visits to persons. 50 . Boring Canal Road Branch.Sampling:  Sampling procedure: The sample was selected of them who are the customers/visitors of Reliance Money. The data has been analyzed by using mathematical/Statistical tool. line graphs etc.

FINDINGS & ANALYSIS 51 .

5 0 1 0 m ore than 5 0 41 .4 0 31 .4 5 36 .5 0 4 0 1 0 Les s3 0 1 5 3 1. of Investors <= 30 10 31-35 15 36-40 40 41-45 15 46-50 10 >50 10 4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 m ore than 5 0 46 .4 0 1 5 4 1.3 5 L es s3 0 52 . (a) Age distribution of the Investors of Moradabad Age Group No.3 5 3 6.FINDINGS AND ANALYSIS 1.4 5 10 46 .

15%..e. 10% and the least investors are in the age group of below 30 yrs. 46-50yrs and more than 50yrs (b). 31 – 35yrs i. Educational Qualification of investors of Moradabad Educational Qualification Graduate/ Post Graduate Under Graduate Others Number of Investors 60 30 10 70 60 50 40 30 20 10 0 60 30 Graduate/Post Graduate Under Graduate 10 Others Others Under Graduate Graduate/Post Graduate Interpretation: 53 . the second most investors are in the age group of 41-45yrs.e. i.Interpretation: According to this chart out of Mutual Fund investors of Moradabad the 40% are in the age group of 36-40 yrs.

Service Business Agriculture Others .Out of 100 Mutual Fund investors 60% of the investors in Moradabad are Graduate/Post Graduate. of Investors 20 25 45 4 6 54 . 30% are Under Graduate and 10% are others (under HSC). c). No. Service Pvt. Occupation of the investors of Moradabad Occupation Govt.

4% are in Agriculture and 6% are in others. Income Group <=10.001-20.001-30.000 15. Employees. 45% are Businessman. of Investors 5 15 20 35 25 55 . 20% are Govt. Service Pvt. Employees. (d).001-15.000 20.000 No.000 >30. Service Business 20 25 4 Agriculture 6 Others 45 Occupation of the customers Interpretation: In Occupation group out of 100 investors. of Investors 50 40 30 20 10 0 Govt.No. Monthly Family Income of the Investors of Moradabad.000 10. 25% are Pvt.

Second one i.30 0 00 1 50 0 1 .20 0 00 1 00 0 1 .000 (2) Investors invested in different kind of investments.000. 20.001 to Rs.40 35 30 25 20 15 10 5 0 5 L es s 10 00 0 1 0 00 1 .e. out of 100 investors. 10. of Respondents 25 15 20 40 56 .15 00 1 . 5% are in the monthly income group of below Rs.e.20 00 11 50 0 0 2 00 0 0 3 0 00 0 m ore 3 00 0 0 1 5 20 35 2 5 m ore 3 00 00 2 00 0 1 .000 and the minimum investors i.15 0 00 L es s10 00 0 Interpretation: In the Income Group of the investors of Moradabad. Kind of Investments Saving A/C Fixed deposits Insurance Mutual Fund No. 30. 25% investors are in the monthly income group of more than Rs. 30. 35% investors that is the maximum investors are in the monthly income group Rs.

25% people have invested in Saving A/c. Preference of factors while investing Factors (a) Liquidity (b) Low Risk (c) High Return (d) Trust No. 40% in Mutual Fund. 20% in Insurance.5 0 4 0 3 0 2 0 1 0 0 No. of Respondents 20 57 K indsof Inves tm ent Sa vi ng Fi A/ xe c d De po sit s In su ra nc M e ut ua lF un d 25 45 10 . 3.of R es pondents 2 5 15 20 40 Interpretation: From the above graph it can be inferred that out of 100 people. 15% in Fixed Deposits.

50 40 30 20 10 0 45 20 25 10 L iquidity L ow R is k H ig hR eturn Trus t Interpretation: 58 .

45% People prefer to invest where there is High Return. of Respondents Yes 70 No 30 80 70 60 50 40 30 20 10 0 Y es No 70 30 Interpretation: 59 . 20% prefer easy Liquidity and 10% prefer Trust 4. 25% prefer to invest where there is Low Risk. Awareness about Mutual Fund and its Operations Response No.Out of 100 People.

5. of Respondents 10 15 35 40 4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 N o. Out of 100 Respondents. Source of information for customers about Mutual Fund Source of information Advertisement Peer Group Bank Financial Advisors No. 60 . of R es pondents 35 10 15 B ank 40 Advertis em ent Peer Group S ource ofInform a tion F inancial Advis ors Interpretation: From the above chart it can be inferred that the Financial Advisor is the most important source of information about Mutual Fund.From the above chart it is inferred that 70% People are aware of Mutual Fund and its operations and 30% are not aware of Mutual Fund and its operations.

Investors invested in Mutual Fund Response YES NO No. 35% through Bank. of Respondents 60 40 70 60 50 40 30 20 10 0 60 40 Yes No 61 . 6. 15% through Peer Group and 10% through Advertisement.40% know about Mutual fund Through Financial Advisor.

7. 60% have invested in Mutual Fund and 40% do not have invested in Mutual Fund. Reason for not invested in Mutual Fund Reason Not Aware Higher Risk Not any Specific Reason No. of Respondents 65 5 30 70 60 50 40 30 20 10 0 65 5 Not Aware 62 Higher Risk Not any Specific Reason .Interpretation: Out of 100 People.

Interpretation: Out of 100 people. who have not invested in Mutual Fund. 5% said there is likely to be higher risk and 30% do not have any specific reason. 8. 65% are not aware of Mutual Fund. (AMC) Name of AMC RELIANCE MF UTI HDFC ICICI Prudential Kotak Others No. of Investors 25 25 15 15 10 10 63 . Investors invested in different Assets Management Co.

No. of Investors 30 25 20 15 10 5 0 F M e 25 25 15 15 10 5 R el ia nc Interpretation: 64 Name of AMC I ot ak O TH E R K FC D TI U H IC IC .

. Out of 100 Investors 25% have invested in each of them. 65 . of Respondents 65 35 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 B etter R eturn Ag ents Advice 6 5 3 5 C olum n1 Interpretation: Out of 100 investors of Reliance MF. 15% in ICICI Prudential. 35% invested on Agent’s Advice. 10% in Kotak and 15% in HDFC and 5% other 9.In Moradabad most of the Investors preferred UTI and Reliance Mutual Fund. Reason for invested in Reliance MF Reason Better Return Agents Advice No. 65% invested because of better return.

10. 40% do not have invested due to less return and 10% due to Agent’s Advice. 66 . Reason for not invested in Reliance MF Reason Not Aware Less Return Agent’s Advice No. of Respondents 50 40 10 6 0 4 0 2 0 0 Not Aware L es sR eturn 5 0 4 0 1 0 Ag ent'sAdvice Interpretation: Out of 100 people who have not invested in Reliance MF. 50% were not aware with Reliance MF.

Mode of Investment Preferred by the Investors 67 . 20% through AMC and 20% through Bank. Channel Preferred by the Investors for Mutual Fund Investment Channel No. of Respondents Financial Advisor 60 Bank 20 AMC 20 70 60 50 40 30 20 10 0 F ina ncia l Adv is or B a nk AMC 20 20 60 AMC B a nk F ina ncia l Adv is or Interpretation: Out of 100 Investors 60% preferred to invest through Financial Advisors. 12.11.

Mode of Investment No. of Investors 46 . Preferred Portfolios by the Investors Portfolio Equity 68 No. 13. of Respondents One time Investment 65 Systematic Investment Plan (SIP) 35 70 60 50 40 30 20 10 0 One tim e Inves tm ent S IP 65 35 Interpretation: Out of 100 Investors 65% preferred One time Investment and 35 % Preferred through Systematic Investment Plan.

37% preferred Balance and 17% preferred Debt portfolio 14. Option for getting Return Preferred by the Investors Option No.Debt Balanced 17 37 50 40 30 20 10 0 Equity D ebt B alance 46 1 7 3 7 Interpretation: From the above graph 46% preferred Equity Portfolio. of Respondents Dividend Payout 21 69 Dividend Reinvestment 8 Growth 71 .

Pa yo ut FINDINGS  In Moradabad in the Age Group of 36-40 years were more in numbers.80 70 60 50 40 30 20 10 0 71 21 Re in ve st m en t 8 Gr ow th Interpretation: From the above graph 71% preferred Growth Option. The second most Investors were in the age group of 41-45 years and the least were in the age group of below 30 years. 70 . 21% preferred Dividend Payout and 8% preferred Dividend Reinvestment Option.

13% told there is not any specific reason for not invested in Mutual Fund and 6% told there is likely to be higher risk in Mutual Fund.000 and the least were in the group of below Rs. between Rs.  Only 67% Respondents were aware about Mutual fund and its operations and 33% were not. 10.  Mostly Respondents preferred High Return while investment.000.  Most of the Investors had invested in Reliance or UTI Mutual Fund.000 were more in numbers. Only 60% Respondents invested in Mutual fund.30.30.  Among 200 Respondents only 60% had invested in Mutual Fund and 40% did not have invested in Mutual fund. the second most Investors were Private employees and the least were associated with Agriculture. the second most preferred Low Risk then liquidity and the least preferred Trust. the second most were in the Income group of more than Rs. 20. 76% Invested in Fixed Deposits. 71 .001.  About all the Respondents had a Saving A/c in Bank. ICICI Prudential has also good Brand Position among investors. employees.  In Occupation group most of the Investors were Govt.  In family Income group.  Out of 80 Respondents 81% were not aware of Mutual Fund. In Moradabad most of the Investors were Graduate or Post Graduate and below HSC there were very few in numbers.

 Maximum Number of Investors Preferred Growth Option for returns. 27% Invested because of Advisor’s Advice and 9% due to better return.Reliance MF places after ICICI Prudential according to the Respondents. Reliance MF has been preferred after them. the second most was Balance (mixture of both equity and debt).  60% Investors preferred to Invest through Financial Advisors.  The most preferred Portfolio was Equity. 72 .  Out of 55 investors of Reliance MF 64% have invested due to its association with the Brand Reliance.  For Future investment the maximum Respondents preferred Reliance Mutual Fund. the second most preferred ICICI Prudential. the second most preferred Dividend Payout and then Dividend Reinvestment.  Most of the investors who did not invested in Reliance MF due to not Aware of Reliance MF. and the least preferred Portfolio was Debt portfolio.  65% preferred One Time Investment and 35% preferred SIP out of both type of Mode of Investment. 25% through AMC (means Direct Investment) and 15% through Bank. the second most due to Agent’s advice and rest due to Less Return.

73 .

CONCLUSION CONCLUSION With the globalize economy and immense competition among countries for faster development of their respective economies. India today is looking ahead to surpass China in terms of foreign Investment and growth 74 . the significance of Mutual Funds and Foreign investment has taken manifold. With a buoyant vibrant and experienced stock market.

Importance and the role of Mutual funds and FIIs play in the Indian stock market can be seen from the fact that the recent surge in Sensex and NIFTY is attributed to the active participation of FIIs in the Stock Market. Despite being aware of the Asian economic crisis where FIIs role was of a major concern. they have not been able to prove themselves to be as influential as mutual funds and FIIs. They think their money will not be secure in Mutual Fund. Products.prospects. Many of people do not have invested in mutual fund due to lack of awareness although they have money to invest. As the awareness and income is growing the number of mutual fund investors are also growing. And the information they have provided shows that though the investment and participation of domestic investors are rising. Stock exchange being the barometer of the economy plays a vital role in showcasing growth of an economy and luring investment. Running a successful Mutual Fund requires complete understanding of the peculiarities of the Indian Stock Market and also the psyche of the small investors. the importance of foreign capital in the development of economy can not be undermined in anyway so the people more emphasis on mutual fund to earn more return increasing our benefit . 75 . I observed that many of people have fear of Mutual Fund. I discussed with a few persons who are into stock broking business. This study has made an attempt to understand the financial behavior of Mutual Fund investors in connection with the preferences of Brand (AMC). While studying the role of Mutual fund and FIIs in Stock Market. They need the knowledge of Mutual Fund and its related terms. Channels etc. still.

Reliance. Only those people invest directly who know well about mutual fund and its operations and those have time. etc. ICICI Prudential etc. Distribution channels are also important for the investment in mutual fund.“Brand” plays important role for the investment. they are well known Brand. They can change investors’ mind from one investment option to others. they are performing well and their Assets Under Management is larger than others whose Brand name are not well known like Principle. Some AMCs are not performing well although some of the schemes of them are giving good return because of not awareness about Brand. People invest in those Companies where they have faith or they are well known with them. UTI. Many of investors directly invest their money through AMC because they do not have to pay entry load. There are many AMCs in Moradabad but only some are performing well due to Brand awareness. Sunderam. 76 . Financial Advisors are the most preferred channel for the investment in mutual fund.

SUGGESTIONS SUGGESTIONS 77 .

rebalancing etc. and systematic transfer plan. But if not possible then they could go for offering more services and benefits at the existing rate. rupee cost averaging. So these are enough to drive the investors towards mutual funds. But most of the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. Investors could also try to increase the spectrum of services offered.  Mutual funds offer a lot of benefit which no other single option could offer. The advisors should target for more and more young investors. these benefits are not offered by other options singlehandedly.  The advisors may try to highlight some of the value added benefits of Mutual funds such as tax benefit. Nobody will invest until and unless he is fully convinced. The most vital problem spotted is of ignorance. The advisors should try to charge a nominal fee at the beginning.  Now the most important reason for not availing the services of advisors was spotted was being expensive. Investors should be made aware of the benefits. So the advisors should try to change their mindsets. Thus the advisors should try to attract more and more persons and turn them into investors and finally their clients. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. They should also maintain their decency and follow the code of ethics so that the investors could trust upon them. 78 .

79 .

LIMITATIONS LIMITATION 80 .

Geographical selectivity in study limiting to Moradabad city People are not interested in giving personal opinion. Biases and non-cooperation of the respondents. it might have happened that some more essential information could have been collected. 81 . Financial constraint. Some customers feel uncomfortable to reveal some personal information relating to income etc. • • • • • Time constraint.The study could not be made that comprehensive due to time constraints.

BIBLIOGRAPHY

BIBLIOGRAPHY
BOOKS: • Kothari C. R. “ Research Methodology” Second Edition, Wishwa Prakashan. 82

Donald S. Tull , Dell I. Hawkins “ Marketing Research” Sixth Edition, Published by Ashok k. Ghosh , Prentice-Hall Of India Pvt. Ltd.

JOURNALS: • • • Indian Journal of Marketing – Volume xxxiv Oct 2006 IBAT Journal of Management – Volume III Number 1 Jan 2007. Journal of Indian Management & Strategy – Volume 20, No.3, July, September 2007 MAGAZINES: • • Business Today, November 21, 2007 issue Business Today, November 21, 2007 issue

WEBSITE • • • • • www.reliancemoney.com www.iloveindia.com/finance/...mutual-funds/reliance.html www.connect.in.com/reliance-mutual-fund/profile-393400.html www.financialexpress.com/.../reliance-mutual-fund...fund/466822 www.moneycontrol.com/mutualfundindia

83

ANNEXURE: QUESTIONNAIRE

QUESTIONNAIRE
Analysis of Mutual Funds of Reliance Money. 84

1. Personal Details: Name:Add: (a) Age:Age Group (b). Qualification:Graduation/PG (c). Occupation. Pl tick (√) Govt. Ser Pvt. Ser Business Agriculture Others Under Graduate Others <= 30 31-35 36-40 41-45 46-50 >50 Phone:-

(d). What is your monthly family income approximately? Pl tick (√). Up to Rs.10,000 Rs. 10,001 to 15000 Rs. 15,001 to 20,000 Rs. 20,001 to 30,000 Rs. 30,001 and above

2. What kind of investments you have made so far? Pl tick (√). All applicable. a. Saving account e. Post Office-NSC, etc b. Fixed deposits f. Shares/Debentures c. Insurance g. Gold/ Silver d. Mutual Fund h. Real Estate

3. While investing your money, which factor will you prefer? . (a) Liquidity (b) Low Risk (c) High Return

(d) Trust

4. Are you aware about Mutual Funds and their operations? Pl tick (√). 5. If yes, how did you know about Mutual Fund? a. Advertisement b. Peer Group c. Banks

Yes

No

d. Financial Advisors Yes No

6. Have you ever invested in Mutual Fund? Pl tick (√). 85

all applicable). HDFC d. you do so because (Pl. c. Having debt & equity portfolio. Agent’ Advice 11. Dividend re-investment 86 c. They have a record of giving good returns year after year. RELIANCEMF b. Kotak f. All applicable. tick (√). If not invested in Mutual Fund then why? (a) Not aware of MF (b) Higher risk (c) Not any specific reason 8. Agent’ Advice 10. Systematic Investment Plan (SIP) 13. a. If yes. When you invest in Mutual Funds which mode of investment will you prefer? Pl. Dividend payout b.which type of funds would you choose? a. If NOT invested in RELIANCEMF. tick (√). UTI c.7. a. 14. Other. in which Mutual Fund you have invested? Pl. If invested in RELIANCEMF. You are not aware of RELIANCEMF. Having only debt portfolio b. b. a. c. When you want to invest . tick (√) all applicable). RELIANCEMF is associated with State Bank of India. RELIANCEMF gives less return compared to the others. tick (√). One Time Investment b. specify 9. How would you like to receive the returns every year? Pl. a. c. b. Reliance e. tick (√). Growth in NAV . you do so because (Pl. a. Only equity portfolio. Which Channel will you prefer while investing in Mutual Fund? (a) Financial Advisor (b) Bank (c) AMC 12.

87 .