DECLARATION

I Sneha Girdhar , hereby declare that this project report entitled “ A study on various plans

and schemes with special reference with Reliance Mutual Fund in Jaipur ’’ in a bonafide

record of work done by me during the course of winter internship and it has not previously

formed the basis for the award to me, for any degree/ diploma, associate ship, fellowship, or

other similar title, of any other institute/society.

Date: Sneha Girdhar

PGDM-BM

En. No. BM/JULY/18/31/3678

 Winter internship project on
‘A Study on various plans and schemes with special reference with
Reliance Mutual Fund’

Undertaken at

Submitted in partial fulfilment of the requirement

for the award of
Post Graduate Diploma in Management
Submitted By:
Sneha Girdhar
PGDM-BM

Corporate Guide: Faculty Guide:

Mr. Razak Khan Mrs.Sonika Tyagi
Area Operation Manager Assistant professor
Reliance Mutual Fund FMS-IRM Jaipur

Faculty of Management Studies

Institute of Rural Management, Jaipur
2018-2020
 CHAPTER 1 – INDUSTRY PROFILE
1.1 About Mutual Fund Industry
The history of Mutual Fund Industry in India can be traced back to 1963, with the launch of
the Unit Trust of India by the Government of India under an Act of Parliament. UTI was
launched under the regulatory and administrative control of RBI. In 1978, the regulatory and
administrative control of UTI was transferred from the Reserve Bank of India to IDBI
(Industrial Development Bank of India). The first mutual fund scheme that was introduced in
India by UTI was in the Unit Scheme (1964). UTI had Assets Under Management worth Rs.
6,700 Crores, by the end of the year 1988.
The Mutual Fund Industry in India has outsourced the work of servicing investors, to Registrar
and Transfer Agents (RTAs). These RTAs are Karvy and CAMS, with CAMS covering almost
65% of asset servicing. The only exception is Franklin Templeton Mutual Fund services, which
has its own RTA set up on an in-house basis. These RTAs have investor service centers which
offer a wide range of services such as KYC fulfillment formalities, financial transaction
acceptance and processing, nomination registration, non-financial changes, statement of
accounts, transmission of units, etc.

1.2 MUTUAL FUNDS

A mutual fund is an investment vehicle made up of a pool of money collected from many
investors for the purpose of investing in securities such as stocks, bonds, money
market instruments and other assets. Mutual funds are operated by professional money
managers, who allocate the fund's investments and attempt to produce capital
gains and/or income for the fund's investors. A mutual fund's portfolio is structured and
maintained to match the investment objectives stated in its prospectus

A mutual fund is both an investment and an actual company. This may seem strange, but it is
actually no different than how a share of AAPL is a representation of Apple, Inc. When an
investor buys Apple stock, he is buying part ownership of the company and its assets. Similarly,
a mutual fund investor is buying part ownership of the mutual fund company and its assets.
The difference is Apple is in the business of making smartphones and tablets, while a mutual
fund company is in the business of making investments.

Mutual funds pool money from the investing public and use that money to buy other securities,
usually stocks and bonds. The value of the mutual fund company depends on the performance
of the securities it decides to buy. So when you buy a share of a mutual fund, you are actually
buying the performance of its portfolio.
 1.3 Types of Mutual Funds
There are different types of Mutual Fund schemes and they are generally classified based on
how they invest. However, all schemes are broadly classified as open-ended and close-ended
schemes.

Open-ended - Open-ended Mutual Fund schemes are open for investment at any point of time.
They offer liquidity to investors since units can be bought and sold freely.
Close-ended - Close-ended Mutual Fund schemes remain open only for a short period of time.
Once the scheme is closed, fresh investments cannot be made. In order to provide liquidity,
these units are listed on stock exchanges and investors can trade in them.
Interval - Interval schemes are a variation of close-ended schemes that are reopened for
redemption for a limited period of time during the scheme’s tenure. Investors are given the
option to sell their units back to the fund during this period.

1.3 Advantages of Mutual Funds

 Flexibility: The investments pertaining to the Mutual Fund offers the public a lot of flexibility
by means of dividend reinvestment, systematic investment plans and systematic withdrawal
plans.

 Affordability: The Mutual funds are available in units. Hence they are highly affordable and
due to the very large principal sum, even the small investors are benefited by the investment
scheme.

 Diversification: The risk pertaining to the Mutual Funds is quite low as the total investment
is distributed in several industries and different stocks.

 Professional Management: The Mutual Funds are professionally managed. The experienced
Fund Managers pertaining to the Mutual Funds examine all options based on research and
experience.

 Potential of return: The Fund Managers of the Mutual Funds gather data from leading
economists and financial analysts. So they are in a better position to analyze the scopes of
lucrative return from the investments.

 Low Costs: The fees pertaining to the custodial, brokerage, and others is very low.
 1.4 Disadvantage of Mutual Funds

 Fluctuating returns: Mutual funds do not offer fixed guaranteed returns in that you should
always be prepared for any eventuality including depreciation in the value of your mutual
fund. In other words, mutual funds entail a wide range of price fluctuations. Professional
management of a fund by a team of experts does not insulate you from bad performance of
your fund.

 No Control: All types of mutual funds are managed by fund managers. In many cases, the
fund manager may be supported by a team of analysts. Consequently, as an investor, you do
not have any control over your investment. All major decisions concerning your fund are
taken by your fund manager. However, you can examine some important parameters such as
disclosure norms, corpus and overall investment strategy followed by an Asset Management
Company (AMC).

 Diversification: Diversification is often cited as one of the main advantages of a mutual

fund. However, there is always the risk of over diversification, which may increase the
operating cost of a fund, demands greater due diligence and dilutes the relative advantages
of diversification.

 Costs: The value of a mutual fund may fluctuate depending on the changing market
conditions. Furthermore, there are fees and expenses involved towards professional
management of a mutual fund which is not the case for buying stocks or securities directly
in the market. There is an entry load which has to be borne by an investor when buying a
mutual fund. Furthermore, some companies charge an exit cost as well when an investor
chooses to exit from a mutual fund.
 CHAPTER 2. COMPANY PROFILE

Reliance Mutual Fund, a part of the reliance – Anil Dhirubhai Ambani Group, is one of the
fastest growing mutual fund company in the country. RMF offers investors a well-rounded
portfolio of products to meet varying investor requirements and has presence in 160 cities
across the country. RMF constantly endeavours to launch innovative products and customer
service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by
Reliance Capital Asset Management Limited, a subsidiary of reliance capital ltd. Which holds 93.37%
of the paid up capital of RCAM.

Reliance Capital Limited is one of India’s leading and fastest growing, RBI registered Non-
Banking Finance Company (NBFC). and has its business interests in Asset Management, Life
Insurance, General Insurance, Private Equity, Proprietary Investments, Stock Broking, & other
activities in the Financial Services Sector

2.1 RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED

Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset
Management Limited) (RNAM) is the asset manager of Reliance Mutual Fund (RMF).
Reliance Capital Limited and Nippon Life Insurance Company are the promoters of RNAM
and currently hold 85.75% of its total issued and paid-up equity share capital. Equity Shares of
RNAM are listed on BSE Limited and National Stock Exchange of India Limited.
Reliance Capital Limited is one of India’s leading and fastest growing, RBI registered Non-
Banking Finance Company (NBFC). and has its business interests in Asset Management, Life
Insurance, General Insurance, Private Equity, Proprietary Investments, Stock Broking, & other
activities in the Financial Services Sector.
Nippon Life Insurance Company (“NLI”) is a Japan’s leading private life insurer and offers a
wide range of financial products, including individual and group life and annuity policies
through various distribution channels, mainly using face-to-face sales channels for its
traditional insurance products. It primarily operates in Japan, North America, Europe and Asia,
and is headquartered in Osaka, Japan. NLI conducts asset management operations in Asia,
through its subsidiary Nissay Asset Management Corporation (“Nissay”), which manages
assets globally.
2.2 RELIANCE MUTUAL FUND

Reliance Mutual Fund (RMF) is one of India's leading mutual funds, with Average Assets
Under Management (AAUM) of Rs 2,36,255.54 Crores (October 2018 - December 2018
QAAUM) and 88.46 lakhs folios (as on December 31, 2018).
RMF which is one of the fastest growing mutual funds in India, offers investors a well-rounded
portfolio of products to meet varying investor requirements and has presence in 160 cities
across the country. RMF constantly endeavours to launch innovative products and customer
service initiatives to increase value to investors.
Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882
with Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital Trustee Co.
Limited (RCTC), as the Trustee.
Reliance Mutual Fund 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 was changed to Reliance Mutual Fund effective March 11,2004 vide
SEBI's letter no. IMD/PSP/4958/2004 dated March 11,2004. RMF 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.

2.3 Objective of Study

 To understand the plans and schemes of under reliance mutual fund
 To understand customer knowledge, behaviour and preferences about mutual fund
 To communicate with investors for feedback of RMF services
 Access the gap between customer and the company
2.4 3C’s of Reliance Mutual Fund
Company
Reliance Mutual Fund has ben established as a trustee under the Indian trust act, 1882 with
Reliance Capital Limited as the Settler/Sponsor and Reliance Capital Trustee co. limited, as
the Trustee.

Reliance Mutual Fund has been register with the Securities and exchange board of India
(SEBI). The name of reliance capital mutual fund was changed to Reliance Mutual Funds
effective March 11,2004. RMF 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.

Setup Date Jun-30-1995

Incorporation Date Feb-24-1995
Sponsor Nippon Life Insurance Company/Reliance Capital Limited
Trustee Reliance Capital Trustee Co. Ltd.
Chairman N.A
CEO/MD Mr. Sandeep Sikka
CIO Mr. Amit Tripathi/ Mr. Manish Gunwani
Compliance Officer Mr. Muneesh Sud

Source: www.moneycontrol.com

Customer
The Reliance Mutual Fund company deals with variety of investors, as every investor is
different from each other with their respective goals. The investors are been categorised on the
basis of amount of investment they made in the form of lump sum(one time) or systematic
investment plan (sip) and they all are been attracted with the return on investment.

Competitors
The main competitors to reliance mutual fund are ICICI mutual fund, HDFC mutual fund,
Aditya Birla Sun Life mutual fund and SBI mutual fund. They are giving out throat competition
in providing products and services to investors and some companies are been backed up by
their well established banks.
Along with these mutual fund companies RMF is facing competition level with bank
instrument like fixed deposit, recurring deposit as these instruments are more safer mode of
investment as investors feels alike.

Asset under management (Rs. Crore) ( as per March 2018)

ICICI Prudential Mutual Fund 305,739

HDFC Mutual Fund 300,549

Aditya Birla Sun Life Mutual Fund 247,539

Reliance Mutual Fund 244,904

SBI Mutual Fund 217,649

2.4 Reliance Mutual Fund – Organization Structure

The Sponsor is the main body that establishes the mutual funds. The sponsor can
be compared to a promoter of a company. The responsibility of a sponsor includes
Sponsor appointing the trustees with the approval of SEBI and setting up an AMC under the
companies act 1956 while getting the trust registered with SEBI.

Reliance Capital Limited

The co- sponsor is a mutual company registered under the law of japan
Co-Sponsor
Nippon Life Insurance Company

The main role of a trustee is to ensure that the interest of the unit holders is protected
Trustee while making sure that the mutual fund complies with all the regulations of SEBI.

Reliance Capital Trustee Co. Limited

The AMC is the investment manager of the trust. It takes care of the day to day
Investment operation of the mutual funds and managing the investor’s money as well. The
Manager / AMC is appointed either by the trustee or the sponsor after approval of SEBI
AMC
Reliance Nippon Life Asset Management Limited
2.5 SWOC Analysis
SWOC Analysis of Reliance Mutual Fund:

STRENGTHS
 Reliance mutual funds has an army of skilled work force which acts as pillar of strength
for the organisation. They are aware and have complete knowledge of various
investment options.
 With liberal trade barriers and global market, there are chances of interaction with
global customers.
 Since reliance is holding a good brand name in the market and operating its business in
other industry also, so it gives reliance mutual fund a great opportunity to expand its
customer base.

WEAKNESS:

 Lack of awareness among customer

 Slow and less active processing time
 More paperwork, lack of training and development programs to employee

OPPORTUNITIES:
 Growing economy will lead to the habit of saving and investment

 Variety of investment options within its scheme are designed according to the need and
requirement of investor

 Constant increase in saving and investments.

CHALLENGES:
 Many new competitors are coming up with new platforms of investments giving stiff
competition to reliance mutual fund.
 With slow and overloaded paper work, it becomes difficult to serve large customer
base within limited time frame.
 2.6 Vision, Mission and Objective of Reliance Mutual Fund

Vision

To be a globally respected wealth creator with an emphasis on customer care and a

culture of good corporate governance.

Mission

To create and nurture a world class, high performance environment aimed at delighting
our customers.

Objective

 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.
 FINDINGS
 It was found that majority of the respondents belonged to the male category. It may be
because of more awareness and knowledge when compared to female respondent

 When the investors founds any difficulty or any doubt regarding mutual fund services
most of the investors approach AMC and distributors to clear their doubts so its good
for the company that they can regularly connect with their investors.

 Most of the investors were happy and satisfied with the services of reliance mutual
funds.

 Many people like to invest their money for 3-5 years. But sometimes market fluctuates
very much and the performance of funds is not that much good and they give few returns
so the investors wants to redeem their money

Learnings from WIP

 Ability to apply knowledge and skills to real world experience in an internship

 Learned what mutual funds investments are

 Ability to communicate with different type of customer base

 Learn how to fill KYC(know your customer) form

 Learn how to tap market to promote the product of mutual funds

 Conclusion

Mutual fund companies should come forward with full support for the investors in
term of advisory services, participation of investors in portfolio design, ensure full
disclosure of related information to investors and ensure that proper consultancy is
given by mutual fund industry to the investors in understanding the terms and condition
of different mutual fund schemes, such as type of fund designing should be promoted
that will ensure the satisfaction of the needs of the investors. Mutual funds information
should be published in an investor friendly language and style to educate investors. It
should be developed by mutual fund company so as to enable the investor to analyse
the risks associated with investments made by them.

There has been a tremendous growth in the mutual fund industry in India, attracting
large investments not only from the domestic investors but also from the foreign
investors. The growing middle class household families with limited risk bearing
capacity, it provides better returns than any other long- term securities.

Today, a lot of investment opportunities are available to the investors in the financial
markets. According to the investor’s opinion the main reason for the quick popularity
of the mutual funds is the guarantee to redeem at net asset values. The investors have
realized the benefits of investing in mutual funds.

Reference

E-sources

 www.moneycontrol.com
 www.reliancemutual.com
 www.mutualfundsindia.com
 ACKNOWLEDGEMENT
The internship opportunity I had with Reliance Mutual Fund was a great chance for learning
and professional development. Therefore, I consider myself as a very individual as I was
provided an opportunity to be a part of it. I thank all the person who contributed directly or
indirectly for the successful completion of the project report on A study on various plans and
schemes with reference with Reliance Mutual Fund
I express my deepest thanks to my corporate guide Mr. Razak Khan Sir and my faculty guide
Sonika Tyagi Ma’am for taking part in useful decisions and giving necessary advices and
guidance and arranged all facilities to make my internship easier. I choose this moment to
acknowledge their contribution gratefully.
I perceive as this opportunity as a big milestone in my career development. I will strive to use
gained skills and knowledge in the best possible way, and I will continue to work on their
improvement, in order to attain desired career objectives.
 Executive Summary

This is a summary of the work carried out at Reliance Mutual Fund. The project assigned to
me is to take the feedback of the customers and investors regarding the plans and services of
Reliance Mutual Fund . The project is carried out in Jaipur. The project report is on A Study
on various plans and schemes with special reference with reliance mutual fund in Jaipur
And the objective behind this project is
1. To communicate with different customer base
2. To access the gap between customer and company
3. To know customers opinion in investment in mutual fund
This is an internship report regarding the diverse services provided by Reliance Mutual Fund.
It starts with an introduction about the industry followed by the profile of reliance mutual fund
. It tells the services provided by the company.
The report shows the internal architecture of the mutual fund. It gives a detail about mutual
funds its advantage disadvantage risk involved in it. Also, it discuss the vision and mission
statement and objective of the organisation. It also includes my learning during thid 15 days of
internship.
The internship was a learning curve in my career. It helps me in exploring market,
communicating with different customer to know their perception and knowledge about mutual
fund. And it gave me an invaluable experience and opportunity to be a part of ‘ Reliance Nippon
Life Asset Management Limited’

INDEX
CHAPTER CONTENT PAGE NO.
A Executive Summary v

1 Introduction 2

2 Company profile 6

3 Objective of study 8

4 3C’s Analysis 9

5 Mission and Vision 11

6 SWOC Analysis 12

7 Findings 13

8 Learning 14

9 Conclusion 15

10 Reference 16