INDEX

SR TOIPCS PAGE
NO NO
1 INTRODUTION 2-12
1.2 NEED FOR THE STUDY
1.3 SCOPE OF THE STUDY
1.4 STATEMEENT OF THE STUDY
1.5 OBJECTIVES OF THE STUDY
1.6 LIMITATIONS OF THE STUDY
2 REVIEW OF LITERATURE 13-15
3 RESEARCH METHODOLOGY 16-30
3.2 RELIANCE GROWTH FUND
3.3 RELIANCE VISION FUND
3.4 RELIANCE BANKING FUND
3.5 RELIANCE REGULAR SAVINGS
FUNDS
4 DATA ANALYSIS 31-32
5 DATA INTERPRETATION 33-56
6 FINDINGS AND CONCLUSION 57-58
7 SUGGESTION AND 59-61
RECOMMENDATION
8 REFRENCE 62

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 CHAPTER- 1

INTRODUCTION
“Mutual fund is a common pool of money in which investor place their contribution
that is to be invested in accordance with the stated objective. The fund belongs to all
the investors depending on the proportion of his contribution to the fund.”

A 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 and the capital appreciations realized are shared by its unit
holders in proportion to 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.

Mutual Fund Operation Flow Chart

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TYPES OF MUTUAL FUND SCHEMES
A Mutual Fund scheme can be classified into open-ended scheme or close-ended
scheme depending on its maturity period.

(i) Open-ended Fund/Scheme

An open-ended fund scheme is one that is available for subscription and repurchase
on a continuous basis. These schemes do not have fixed maturity period. Investors can
conveniently buy and sell units at Net Asset Value (NAV) related prices which are
declared on a daily basis. The key feature of open-ended schemes is liquidity.

(ii) Closed-ended Fund/Scheme:

A close- ended fund or scheme has a stipulated maturity period, e.g., 5-7 years. The
fund is open for subscription only during a specified period at the time of launch of
the scheme. Investors can invest in the scheme at a time of the initial public issue and
thereafter they can buy or sell the units of the scheme on the stock exchange where
the units are listed. In order to provide an exit route to the investors, some close-ended
funds give an option of selling back the units to the mutual fund through periods
repurchase of NAV-related prices. SEBI regulations stipulated that at least one of the
two exit routes is provided to the investor, i.e., either repurchase facility or through
listing on stock exchanges. These mutual fund schemes disclose NAV generally on a
weekly basis.

BY INVESTMENT OBJECTIVE
A scheme can also be classified as growth scheme, income scheme, or balanced
scheme considering its investment objective. Such schemes may be open-ended or
close-ended schemes as described earlier. Such schemes may be classified mainly as
follows

(i) Growth/Equity-oriented Schemes

For investors, having a long- term outlook and seeking appreciation over a period of
time.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.

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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 preference. The investors must indicate the
option in the application form. Mutual funds also allow investors to change the
options at the later date. Growth schemes are good.

(ii) Income/Debt-oriented Scheme

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. However, long-term investors may not
bother about these fluctuations.

(iii) Balanced fund

The aim of balanced fund is to provide both growth and regular income as such
schemes invest both in equities and fixed income securities in the proportion indicated
in their offer documents they generally invest 40%-60% in equity and debt
instruments. However, NAVs of such funds are likely to be less volatile compared to
pure equity funds.

(iv) Money market or liquid fund

These funds are also income funds and their aim is to provide easy liquidity,
preservation of capital and moderate income. These schemes invest exclusively in
safer short-term instruments such as treasury bills, certificates of deposit, commercial
paper and inter-bank call money, government securities. Returns on these schemes
fluctuate much less compared to other funds. These funds are appropriate for
corporate and individual investors as a means to park their surplus funds for short
periods.

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INVESTMENT PLANS
There are mainly four different plans available:
I. Systematic Investment Plan (SIP)
II. Systematic Transfer Plan (STP)
III. Systematic Withdrawal Plan (SWP)
IV. Automatic Re-investment Plan (ARP)

(i) Systematic investment plan (SIP)

Under this plan the investor can invest a fixed amount at regular intervals. The
investment could be made by giving post dated cheques in advance or by a facility of
debit to the investor’s salary accounts. As the investment is made regularly, the
investor buys more units when the price is low and fewer units when the price is high.

(ii) Systematic transfer plan (STP)

This plan gives investor the facility to transfer a periodic specific amount form one
scheme to another scheme of the same Mutual Fund. A transfer from one scheme will
mean redemption of units from that scheme and likewise, it would be considered as an
investment in units of the scheme to which the transfer is made. This redemption and
investment would happen at the applicable NAV’S.

(iii) Systematic withdrawal plan (SWP)

This is a plan where by an investor can make systematic withdrawals from his fund
investment accounts on a periodic basis. This facility helps him to ensure regular cash
inflow; the SWP allows the investor to withdraw a fixed amount every month and
credited to his bank account on a periodic basis. The amount withdrawn is treated as
redemption of units by investors and the units are calculated using the applicable NAV
as specified in the offer document.

(iv) Automatic re-investment plans (ARP)

The automatic re-investment plan allows the investors to re-invest the amount of
dividend instead of receiving it in cash. This re-investment may either be in the same
scheme or into other scheme of the same fund.

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ADVANTAGES OF MUTUAL FUNDS

(i) Professional Management

Qualified professionals manage your money and they have research team that
continuously analyses the performance and prospects of companies. They also select
suitable investment to achieve the objectives of the schemes and expertise which will
add value to your investment. These fund managers are in a better position to manage
your investment and get higher returns.

(ii) Diversification
The cliché, “don’t put all your eggs in one basket” really applies to the concept of
intelligent investing. Diversification lowers your risk of loss by spreading your money
across various industries. It is a rare occasion when all the stocks decline at the same
time and in the same proportion. Sector funds will spread your investment across only
one industry and it would not be wise for your portfolio to be skewed towards these
types of funds for obvious reasons.

(iii) Choice of Schemes

Mutual Funds offer a variety of schemes that will suit your needs over a life time.
When you enter a new stage in your life, all you need to do is sit down with your
investment advisor who will help you to rearrange your portfolio to suit your altered
lifestyle.

(iv) Affordability
As a small investors, many find that it is so not possible to buy shares of large
corporations. Mutual funds generally buy and sell securities in large volumes which
allow investors to benefit from lower trading costs. The smallest investor can get
started on mutual funds because of the minimal investment requirements. You can
invest with a minimum of Rs. 500 in a on a regular basis.

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(v) Tax Benefits
Investments held by investors for a period of 12 months or more qualify for Capital
gains and will be taxed accordingly (10%of the amount by which the investment
appreciated, or 20%after factoring in the benefits of cost indexation, whichever is
lower). These investments also get the benefits of indexation.

(vi) Liquidity
With open-ended funds, you can redeem all or part of your investment any time you
wish and receive the current value of the shares or the NAV related price. Funds are
more liquid than most investment in shares, deposits and bonds and the process is
standardized, making it quick and efficient so that you can get your cash in hand as
soon as possible.

(vii) Transparency
The performance of a mutual fund is reviewed by various publications and rating
agencies, making it easy for investors to compare one to the other. Once you are part
of a mutual fund scheme, you are provided with regular updates, for examples daily
NAVs, as well as information on the specific investment made and the fund manager’s
strategy and out look of the scheme.
<
(viii) Well Regulated
All Mutual Funds are registered by SEBI and they function within the provision of
strict regulations designed to protect the interests of investors. The operations of
Mutual Funds are regularly monitored by SEBI.

(ix) Flexibility
Through features such as regular investment plans, regular withdrawal plans and
dividend reinvestment plans, you can systematically invest or withdraw funds
accordingly to your needs and convenience.

(x) Low Costs

Mutual Funds are a relatively less expensive way to invest compared to directly
investing in the capital markets because the benefits of scale in brokerage, custodial
and other fees translate into lower costs for investors
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RISK ASSOCIATED WITH MUTUAL FUND INVESTMENT
At the cornerstone of investing is the basic principle that the greater the risk you take,
the greater the potential reward. Typically risk is defined as short-term price
variability. But on a long-term basis, risk is the possibility that your accumulated real
capital will be insufficient to meet your financial goals.

If you want to reach your financial goals, you must start with an honest appraisal of
your own personal comfort zone with regard to risk, individual tolerance for risk
varies, creating a distinct “investment personality” for each investors.

So whether you consider your investment temperament to be conservative, moderate

or aggressive you need to focus on how comfortable or uncomfortable you will be as
the value of your investment moves up or down. Mainly there are four risks in the
mutual fund investment. That is market risk, inflation risk, credit risk, interest risk.

TYPES OF RISKS
All investment involves some from of risk. Even an insured bank account is subject
to the possibility that inflation will rise faster than your earning, leaving you with less
real purchasing power than when you started (Rs. 1000 gets you less than it got your
father when he was your age).

Through analyzing the market can minimize the risk in mutual fund investment. In
these the investor should see the past performance of the scheme or which they are
going to invest; investor should know the past performance. Fund manager should
analyze the market and invest in which sector is going in growth stage.

(i) Market Risk

At times the prices or yields of all the securities in a particular market rise or fall due
to broad outside influence. When this happen, the stock prices of both an outstanding,
highly profitable company and a fledgling corporation may be affected. This change
in price is due to “market risk”.

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(ii) Inflation Risks
Sometimes referred to as “loss of purchasing power”. Whenever inflation sprints
forward faster than earnings on your investment, you run the risk that you’ll actually
be able to buy less, not more. Inflation risk also occurs when prices rise faster than
your returns.
(iii) Credit Risk
In short, how stable is the company or entity to which you lend your money when you
invest. How certain are you that it will able to pay the interest you are promised, or
repay your principal when the investment matures

(iv) Interest Risk

Changing interest rates affect both equities and bonds in many ways. Investors are
reminded that “predicting” which way rates wick go is rarely successful. A diversified
portfolio can help in offsetting these changes.

1.2 NEED FOR THE STUDY

In recent times, there has been a growing preference among people for equity schemes
as they anticipate higher returns. This trend is primarily driven by the desire to
achieve maximum returns within a short period. Consequently, there is an increasing
demand for equity schemes in the investment landscape.

Given this context, there is a compelling need to evaluate the performance of equity
schemes offered by Reliance Mutual Fund. This research endeavor aims to address
this need by systematically assessing the effectiveness and efficiency of these
schemes in delivering returns to investors.

By conducting this study, several objectives can be achieved:

 Performance Evaluation:

The study will provide insights into the performance of equity schemes
offered by Reliance Mutual Fund, including their returns, risk profiles, and
overall effectiveness in meeting investors' expectations.

 Comparison and Benchmarking:

Through comparative analysis, the study will benchmark the performance of

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 Reliance Mutual Fund's equity schemes against industry standards and
competitors, enabling investors to make informed decisions.

 Identifying Strengths and Weaknesses:

The research will help identify the strengths and weaknesses of Reliance
Mutual Fund's equity schemes, offering valuable feedback for potential
improvements and optimizations.

 Risk Assessment:

By evaluating the risk-adjusted returns of these schemes, investors can gain a

deeper understanding of the level of risk associated with their investments and
make risk-appropriate decisions.

 Investor Education:

The findings of the study can serve as an educational resource for investors,
empowering them with knowledge to make informed investment choices and
manage their portfolios effectively.

Overall, the study on the performance of equity schemes in Reliance Mutual

Fund is crucial in catering to the evolving needs and preferences of investors,
facilitating better decision-making, and fostering transparency and
accountability in the mutual fund industry.

1.3 SCOPE OF THE STUDY

 This report covers the various investment modes available to the

investor
 The details about the performance of reliance growth fund, vision fund,
regular saving fund & banking fund.
 The comparison of different schemes will provide the better idea to the
investor about where to invest.

1.4 STATEMENT OF THE PROBLEM

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  The researcher has tried to study the performance of various companies in
terms of equity shares in the market. How their performance help the company
to grow in real terms and how it impacts on shareholder’s income.
 To get the deeper understanding on various topics of the research and to get
deeper knowledge the researcher has selected the topic:

(“THE PERFORMANCE OF EQUITY SCHEMES WITH RELIANCE

MUTUAL FUNDS”
1.5 OBJECTIVES OF THE STUDY
 To know the different funds available in Reliance Mutual Fund.
 To determine the performance of different schemes in Reliance Mutual Fund.
 To enhance investors understanding and awareness of the factors influencing
mutual fund performance

1.6 LIMITATIONS OF THE STUDY

1. Past Performance Not Indicative of Future Results: One limitation of the study
is that past performance of Reliance Mutual Fund schemes may not accurately
predict future performance. Market conditions, economic factors, and other
variables can change, impacting the fund's performance differently in the
future.
2. Limited Generalizability to Other Mutual Funds: The recommendations and
findings of the study are specific to Reliance Mutual Fund and may not be
generalized to other mutual fund companies. Each fund company operates
under unique circumstances, investment strategies, and market conditions,
which can influence their performance differently.
3. Data Availability and Reliability: The study's findings may be limited by the
availability and reliability of data related to Reliance Mutual Fund's
performance. Data quality issues, incomplete information, or discrepancies
could affect the accuracy and validity of the analysis.
4. Scope and Coverage of Analysis: The study may not comprehensively cover
all aspects of Reliance Mutual Fund's operations, investment strategies, or
market positioning. Limitations in scope could impact the depth and breadth of

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 the analysis and may not capture all relevant factors influencing fund
performance.
5. External Factors and Market Volatility: External factors such as geopolitical
events, regulatory changes, and global economic trends can impact the
performance of mutual funds. The study may not fully account for the
influence of these external factors on Reliance Mutual Fund's performance.

6. Investor Preferences and Risk Tolerance: The study may not fully consider the
individual preferences, risk tolerance levels, and investment objectives of
investors. Different investors may have varying expectations and goals, which
may not align with the findings or recommendations of the study.

7. Time Constraints: Time constraints inherent in the study's timeframe may limit
the depth of analysis or the ability to capture long-term trends and patterns in
Reliance Mutual Fund's performance.

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 CHAPTER – 2
REVIEW OF LITERATURE

2.1 MUTUAL FUND INDUSTRY IN INDIA

,

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. The history
of mutual funds in India can be broadly divided into four distinct phases

First Phase – 1964-87

Unit Trust of India (UTI) Was established on 1963 by an Act of Parliament. It was set
up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India.

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) etc,. 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 and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993.

Fourth Phase – since February 2003

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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.

Important documents
Two key documents that highlight the fund's strategy and performance are
1) The prospectus (legal document) and
2) The shareholder reports (normally quarterly).

Organisation of a Mutual Fund

1. Sponsor
The sponsor is the promoter of the mutual fund. The sponsor establishes the fund and
registers the same with the SEBI. Sponsor appoints the Trustees, Custodian and the
AMC with the prior approval of SEBI, and in accordance with the SEBI regulation.

2. Trustees

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Trustees are the people within a mutual fund organization who are responsible for
ensuring that investors’ interest in a scheme are properly taken care of. In return for
their services, they are paid trustee fees, which are normally charged to the scheme.

3. Asset Management Company

,

AMCs manage the investment portfolios of schemes. An AMCs income comes from
the management fees it charges the scheme it manages.

In order to earn the management fee, an AMC has naturally to employ people and
bear all the establishment costs that are related to its activity, such as for premises,
furniture, computers and other assets, software development, communication costs,
etc. These are to be met out of the management fee earned.
Within the AMC, fund mangers are to ensure that schemes funds are invested to
achieve the objective of the scheme and in the interest of the unit holder. The CEO, in
tern, has to ensure that the fund managers perform this role. In addition, compliance
with various rules and regulations, and overall risk management are the responsibility
of the Mutual Fund’s CEO.

4. Distributors
Distributors earn a commission for bringing investors into the scheme of a mutual
fund. This commission is an expense for the scheme, although there are occasions
when an AMC may choose to bear the cost, wholly or partly.

5. Registrars
An investor’s holding in mutual fund schemes is typically tracked by the scheme’s
Registrar and Transfer agent (R&T). Some AMCs prefer to handle this role in-house,
i.e. on their own instead of appointing an R&T. The registrar or the AMC as the case
may be maintains an account of the investor’s investment in and disinvestment from
the schemes. Requests to invest more money into a scheme or to redeem money
against existing investments in a scheme are processed by the R&T.

6. Custodians/ Depository

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The custodian maintains custody of the securities in which the scheme invests – as
distinct from the registrar who tracks the investment by investors in the scheme. This
ensures an independent record of the investment of the scheme. The custodian also
follows up on various corporate actions, such as rights, bonus and dividends declared
by investee companies.

CHAPTER – 3
RESEARCH METHODOLODY

RELIANCE MUTUAL FUNDS IN INDIA

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.

Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with Average
Assets Under Management (AAUM) of Rs. 1,18,973 Crores and an investor count of
over 74 Lakh folios. (AAUM and investor count as of May 2013).

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one
of the fastest growing mutual funds in the country. RMF offers investors a well-
rounded portfolio of products to meet varying investor requirements and has presence
in 159 cities across the country. Reliance Mutual Fund constantly endeavors to launch
innovative products and customer service initiatives to increase value to investors.
"Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management
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Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-
up capital of RCAM, the balance paid up capital being held by minority
shareholders."

Reliance Capital Ltd. is one of India’s leading and fastest growing private sector
financial services companies, and ranks among the top 3 private sector financial
services and banking companies, in terms of net worth. Reliance Capital Ltd. has
interests in asset management, life and general insurance, private equity and
proprietary investments, stock broking and other financial services.
Sponsor:
Reliance Capital Limited
Trustee:
Reliance Capital Trustee Co. Limited
Investment Manager:
Reliance Capital Asset Management Limited
Statutory Details:
The Sponsor, the Trustee and the Investment Manager are
incorporated under the Companies Act 1956.
Risk Factors:
Mutual Funds and securities investments are subject to market risks and there is no
assurance or guarantee that the objectives of the Scheme will be achieved. As with
any investment in securities, the NAV of the Units issued under the Scheme can go up
or down depending on the factors and forces affecting the capital markets. Past
performance of the Sponsor/AMC/Mutual Fund is not indicative of the future
performance of the Scheme. The Sponsor is not responsible or liable for any loss
resulting from the operation of the Scheme beyond their initial contribution of Rs.1
lakh towards the setting up of the Mutual Fund and such other accretions and
additions to the corpus. The NAV of the Scheme may be affected, interalia, by
changes in the market conditions, interest rates, trading volumes, settlement periods
and transfer procedures. The Mutual Fund is not assuring that it will make periodical
dividend distributions, though it has every intention of doing so. All dividend
distributions are subject to the availability of distributable surplus in the Scheme. For
details of scheme features and for scheme specific risk factors, please refer to the
Scheme Information Document.
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Board of Directors
Mr. Soumen Ghosh
Mr. Kanu Doshi
Mr. Manu Chadha
Mr. Sushil Tripathi

Management Team
CEO
Mr. Sundeep Sikka
Head Equity Investments
Mr. Madhusudan Kela
Head Fixed Income
Mr. Amitabh Mohanty

Equity Fund Managers

Mr. Sunil B. Singhania Mr. Ashwani Kumar
Mr. Shailesh Raj Bhan Mr. Shiv Chanani
Mr. Krishan Degas Mr. Govind Agrawal
Mr. Omprakash S. Kuckian

Vision Statement
To be a globally respected wealth creator with an emphasis on customer care and a
culture of good corporate governance.

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

Reliance Capital Asset Management Ltd.

Reliance Capital Asset Management Ltd.(RCAM) is an unlisted Public Limited
Company incorporated under the Companies Act, 1956 on February 24, 1995, having
its registered office at "Reliance House", Near. Mardia Plaza, Off. C.G. Road,
Page | 18
Ahmedabad, 380 006 and its Corporate Office at One Indiabulls Centre, Tower 1,
Jupiter Mills Compound , 841, Senapati Bapat Marg, Elphinstone Road, Mumbai -
400 013. RCAM has been appointed as the Asset Management Company of Reliance
Mutual Fund by The Trustee vide Investment Management Agreement (IMA) dated
May 12, 1995 and executed between Reliance Capital Trustee Co. Limited and
Reliance Capital Asset Management Ltd. and amended on August 12, 1997 and
January 20, 2004 in line with SEBI (Mutual Funds) Regulations,1996).
Pursuant to this IMA, RCAM is authorised to act as Investment Manager of the
Mutual Fund. The networth of the Asset Management Company based on audited
accounts as on March 31, 2009 is Rs. 841.32 Crore. The Mutual Fund has launched
Forty Seven Schemes till date, namely:

Reliance Growth Fund (September 1995) Reliance Vision Fund (September 1995)

Reliance Income Fund (December 1997) Reliance Banking Fund (May 2003)

Reliance MediumTerm Fund (August2000) Reliance Regular Savings Fund (May 2005)

Reliance Media & Entertainment Fund

Reliance Fixed Term Scheme (March) 2003 (September 2004)

Reliance Gilt Securities Fund (July 2003) Reliance NRI Income Fund (October 2004)

Reliance Monthly Income Plan Reliance Equity Opportunities Fund

(December 2003) (February 2005)

Reliance Fixed Maturity Fund – Series II Reliance Fixed Horizon Fund XII
(April 2005) (November 2008)

Reliance Liquidity Fund (June 2005) Reliance Infrastructure Fund (June 2009)

Reliance Fixed Tenor Fund (November Reliance Fixed Horizon Fund X

2005) (August 2008)

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Reliance Fixed Horizon Fund I Reliance Fixed Horizon Fund IX
(August2006) (March 2008)

Reliance Fixed Horizon Fund III Reliance Fixed Horizon Fund VII
(March 2007) (January 2008)

Reliance Interval Fund (March 2007) Reliance ixed Horizon Fund VI

(December 2007)

Reliance Equity Advantage Fund Reliance Gold Exchange Traded Fund

(June 2007) (October 2007)

Reliance Fixed Horizon Fund V Reliance Fixed Horizon Fund IV

(September 2007) (August 2007)

Reliance Equity Linked Saving Fund - Reliance Money Manager Fund

Series I (December 2007) (March 2007)

Reliance Natural Resources Fund Reliance Long Term Equity Fund

(January 2008) (November 2006)

Reliance Fixed Horizon Fund VIII Reliance Fixed Horizon Fund II

(March 2008) (November 2006)

Reliance Banking Exchange Traded Fund Reliance Fixed Horizon Fund (April 2006)
(May 2008)

Reliance Fixed Horizon Fund XI Reliance Equity Fund (February 2006)

(October 2008)
Reliance Liquid Fund (March 1998) Reliance Tax Saver (ELSS) Fund
(July 2005)

Reliance Short Term Fund Reliance Fixed Maturity Fund – Series I

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(December 2002) (March 2005)

Reliance Diversified Power Sector Fund Reliance Index Fund (February 2005)*
(March 2004)

Reliance Floating Rate Fund (August 2004) Reliance NRI Equity Fund (October 2004)

Different schemes in 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:
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

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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.
Investors need to keep a watch on the performance of those sectors/industries and
must exit at an appropriate time. They may also seek advice of an expert.

Equity/Growth Schemes

1. Reliance Natural Resources Fund

(An Open Ended Equity Scheme) The primary investment objective of the scheme is
to seek to generate capital appreciation & provide long-term growth opportunities by
investing in companies principally engaged in the discovery, development,
production, or distribution of natural resources and the secondary objective is to
generate consistent returns by investing in debt and money market securities.

2. Reliance Equity Fund

(An open-ended diversified Equity Scheme.) 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.

3. Reliance Tax Saver (ELSS) Fund

(An Open-ended Equity Linked Savings Scheme.) 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.
Scheme Type: An Open-ended Equity Linked Savings Scheme.

Investment Pattern
80-100% in equity and equity related securities .
Up to 20% in Debt and Money Market Instruments.

Page | 22
Investment Objective
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.

Plans / Options
Growth Option
Dividend Pay-out Option & Dividend Reinvestment Option
Min. Additional Investment: Minimum additional purchases of Rs. 500.

Entry Load
For Subscription below Rs.2 cores-2.25%
For Subscription of Rs. 2 crs & above and below Rs 5 crs - 1.25%
Above but below Rs. 5 cores-Nil

Exit Load: Nil

Minimum Redemption Amount:

Will be allowed only after the expiry of the lock in period of 3 years.

Recurring Expenses
AMC Fees- 0.13%
Operational Expenses – 0.03%
Marketing Expenses -0.01%
The above expenses are estimates only and are subject to change as per actual.
Expenses on an ongoing basis will not exceed the maximum limits as may be
specified by SEBI Regulations from time to time.

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 Income-tax Act, 1961. Investment made
up to Rs 1 lakh by the eligible investor being an Individual or a Hindu

Page | 23
 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

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

4. Reliance Equity Opportunities Fund

(An Open-Ended Diversified Equity Scheme.) 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.

Scheme 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

Including up to 25% of the corpus in securitized debt.

Investment Objective

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.

Plans / Options

Growth Plan:

Page | 24
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.

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

For Subscriptions of less than Rs 5 Crs;

 1% if redeemed/switched on or before completion of 6 months from the date of

allotment.
 0.5% if redeemed/switched between 6 months 1 day & before completion of 1 year
from the date of allotment & Nil thereafter
 For Subscription of Rs 5 Crs and above, no exit load shall be charge

Recurring Expenses
Investment Management Expenses - 1.25%
Operational Expenses - 0.25%
Marketing Expenses - 1%

4. Reliance Vision Fund

(An Open-ended Equity Growth Scheme.) The primary investment objective of the
Scheme is to achieve long term growth of capital by investment in equity and equity

Page | 25
related securities through a research based investment approach.
Investment Pattern
Equity and Equity related Instruments - At least 60%
Debt Instruments – Up to 30%
Money Market Instruments - Up to 10%

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.

Plans / Options
Growth Plan: Growth Option & Bonus Option
Dividend Plan: Dividend Pay-out Option & Dividend Reinvestment Option

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

Recurring Expenses
Investment Management Expenses - 1.25%
Operational Expenses - 0.25%
Marketing Expenses - 1%

5. Reliance Growth Fund

(An Open-ended Equity Growth Scheme.) 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.

Investment Pattern
Equity and Equity related Instruments - 65% - 100%.
Debt and Money Market Instruments - Up to 35%.

Page | 26
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.

Plans / Options
Growth Plan:

Growth Option & Bonus Option

Dividend Plan:

Dividend Pay-out Option & Dividend Reinvestment Option

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

Recurring Expenses
Operational Expenses - 0.25%
Marketing Expenses - 1%
Investment Management Expenses - 1.25%

Nifty Plan 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.

Sensex Plan The objective of Sensex plan is to replicate the composition of the
Sensex, with a view to endeavor to generate returns, which could
approximately be the same as that of Sensex.

Page | 27
6. Reliance Index Fund:

(An Open Ended Index Linked Scheme.) The Investment Objective under the 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. The Investment
Objective under the Sensex plan is to replicate the composition of the Sensex, with a
view to endeavor to generate returns, which could approximately be the same as that
of Sensex.
Investment Objective

Plans / Options

Growth Plan:
Growth Option, Bonus option

Dividend Plan:

Dividend (pay out) option, Dividend (reinvestment) option

Entry (Sales) Load: 1%

Exit Load: Nil

Recurring Expenses
Investment Management Expenses - 1.25%
Operational Expenses - 0.25%
Marketing Expenses - 1%

Page | 28
7. Reliance NRI Equity Fund
(An open-ended Diversified Equity Scheme.) 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.

Investment Objective of the Reliance NRI Equity Fund

The primary investment objective of the Reliance NRI Equity Fund is to generate
optimal returns by investing in equity or equity related instruments primarily drawn
from the companies in the BSE 200 index.

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 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

Page | 29
 NAV on the transaction day following the date of declaration of dividend and
additional units will be allotted accordingly. Only for Non-Resident Indians.

8. Reliance Regular Savings Fund

(An Open-ended Scheme.) Equity Option: The primary investment objective
of this option is to seek capital appreciation and/or to generate consistent
returns by actively investing in Equity &Equity-related Securities.

Balanced Option: The primary investment objective of this option is to generate

consistent returns and appreciation of capital by investing in mix of securities
comprising of equity, equity related instruments & fixed income instruments.

Investment Objective: Reliance Regular Savings Fund provides you the choice of
investing in Debt, Equity or Hybrid options with a pertinent investment objective and
pattern for each option.

Debt Option: The primary investment objective of this option is to generate optimal
returns consistent with a moderate level of risk. This income may be complemented
by capital appreciation of the portfolio. Accordingly, investments will predominantly
be made in Debt & Money Market Instruments.

Equity Option: The primary investment objective of this option is to seek capital
appreciation and/or to generate consistent returns by actively investing in Equity
&Equity-related Securities

Balanced Option: The primary investment objective of this option is to generate

consistent returns and appreciation of capital by investing in mix of securities
comprising of equity, equity related instruments & fixed income instruments.

9. Reliance Long Term Equity Fund

(A close-ended Diversified Equity Scheme.) 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

Page | 30
securities and Derivatives and the secondary objective is to generate consistent returns
by investing in debt and money market securities.

Product 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

Investment Objective
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.

Options Available

 Growth Option

 Dividend: Only Dividend payout

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

10. Reliance Equity Advantage Fund

(An open-ended Diversified Equity Scheme.) The primary investment objective of the
scheme is to seek to generate capital appreciation & provide long-term growth
opportunities by investing in a portfolio predominantly of equity & equity related
instruments with investments generally in S & P CNX Nifty stocks and the secondary
objective is to generate consistent returns by investing in debt and money market
securities.

Page | 31
Investment Objective of Reliance Equity Advantage Fund
The primary investment objective of the scheme is to seek to generate capital
appreciation & provide long-term growth opportunities by investing in a portfolio
predominantly of equity & equity related instruments with investments generally in
S&P CNX Nifty stocks and the secondary objective is to generate consistent returns
by investing in debt and money market securities.

Options Available:

 Retail Plan

 Institutional Plan

Each of the above Plans will have Growth & Dividend Plans respectively
as specified below

 Growth Plan : Growth Option & Bonus Option

 Dividend Plan : Dividend Payout Option & Dividend Reinvestment Option

Equity Schemes
The investments of these schemes will predominantly be in the stock markets and
endeavor will be to provide investors the opportunity to benefit from the higher
returns which stock markets can provide. Equity Funds include diversified Equity
Funds, Sectoral Funds and Index Funds.
Diversified Equity Funds invest in various stocks across different sectors while
sectoral funds which are specialized Equity Funds restrict their. Investments only to
shares of a particular sector and hence, are riskier than Diversified Equity Funds.
Index Funds invest passively only in the stocks of a particular index and the
performance of such funds move with the movements of the funds. I have selected 4
funds,namely

Page | 32
S.NO. NAME OF FUND

1.
Reliance Growth Fund

2.
Reliance Vision Fund

3.
Reliance Banking Fund

4.
Reliance Regular Savings Fund

Page | 33
 CHAPTER - 4
DATA ANALYSIS
4.1 RESEARCH DESIGN

It is the actual frame work of a research that provides specific details regarding the
process to be followed in conducting the research. The design for this study is
descriptive in nature.

4.2 DATA COLLECTION

Secondary Data
The secondary data, on the other hand, are those which have already been collected by
someone else and which have already been passed though the statistical process.
Secondary data was collected form Balance Sheet and annual reports of the company,
Magazines, Books of Accounts, Other books, etc.

4.3 DATA ANALYSIS METHODS

There is some tools are there. That is

(i) Treynor model

(ii) Sharpe model

(iii) Jensen performance model

(I) Treynor Model: Jack Treynor evaluated this model which can be used to calculate
the return per unit of the risk. This done by assuming that all investors’ average to risk
would like to maximize this value.

The TM= Rp-Rf

Rp: average return of Portfolio.

Rf: average return of risk free rate of investment.

b =a measure of systematic risk

Page | 34
(ii) Sharpe Model: William f sharp developed this model in 1996. It measures to the
total risk not merely systematic risk a performance measures is calculated as follows

SM = Rp-Rf

sp

s: Standard deviation of rate of return.

(iii) Jensen Performance Model: The absolute risk adjusted return measure loses
developed by Michael and commonly known as Jensons measures. It is mentioned as
a measure of absolute performance because a defined definite standard is set and
against that the performance is measured

Rp= a+ b(Rm-Rf)

Rp: average return of Portfolio.

Rf: average return of risk free rate of investment.

a : The intercept

b: Measure of systematic risk

Rm: avg. market return.

Page | 35
 CHAPTER-5
DATA INTERPRETATION

(i) RELIANCE GROWTH FUND

TABLE NO: 3.1
RELIANCE GROWTH FUND THE YEAR OF 2011

Month Treynor Sharpe Jensen

Jan 12.8 9.05 6.54

Feb 1.32 4.81 2.49

Mar 8.97 8.96 9.97

Apr 5.07 3.74 5.92

May -12.84 -3.79 -14.41

Jun -4.18 -3.46 -8.28

Jul 0.10 -3.84 -2.86

Aug 17.53 3.76 13.59

Sep 8.51 3.76 8.05

Oct 8.04 3.74 6.24

Nov 1.81 3.45 3.35

Dec 5.41 3.54 1.93

β 0.91

S.D 1.63

--

Page | 36
 20

15

10

5
Returns

Treynor
0
Sharpe
-5 Jensen
-10

-15
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Months

Interpretation
From the chart 3.1, January to April all the ratios shows the positive return.
From May to July it tends to show down word trends and then it tends to move
up from August. Since the Reliance Growth Fund shows increase growth from
August. So the investors are to invest in the fund.

TABLE NO: 3.2

RELIANCE GROWTH FUND THE YEAR OF 2012

Month Treynor Sharpe Jensen

Page | 37
Jan 2.48 3.72 2.57

Feb -5.22 -6.71 -7.47

Mar 0.88 3.52 0.96

Apr 13.01 3.76 9.95

May 4.62 3.74 5.82

Jun 6.69 3.70 3.66

Jul 4.35 3.74 5.18

Aug 4.18 3.70 3.44

Sep 6.98 3.76 11.07

Oct 12.74 3.76 15.59

Nov 5.57 3.75 4.53

Dec 13.47 3.75 10.59

β 0.96

S.D 1.65

Page | 38
 20
15
10
RETURNS 5 Treynor
0 Sharpe
-5 Jensen
-10
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.2, January ratios show the positive return and February it
shows the Negative returns. From March to December it tends to show upward
returns. Since the Reliance Growth Fund shows increase growth from March.
So the investors are to invest in the fund.

Page | 39
TABLE NO: 3.3
RELIANCE GROWTH FUND THE YEAR OF 2013

Month Treynor Sharpe Jensen

Jan -21.27 -3.79 -19.34

Feb -4.73 -3.85 -3.70

Mar -6.65 -3.81 -10.16

Apr 10.85 3.77 12.26

May -5.13 -3.82 -5.86

Jun -9.21 -3.21 -14.87

Jul 17.51 3.76 11.24

Aug 1.65 3.65 1.82

Sep -11.49 -3.79 -12.85

Oct -20.34 -3.78 -25.15

Nov -18.73 -3.79 -12.19

Dec 11.10 3.76 10.37

β 0.98

S.D 2.89

Page | 40
 20
15
10
5
0
RETURNS

-5
-10 Treynor
-15 Sharpe
-20 Jensen
-25
-30
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.3, From to March it shows the negative return and April
shows the positive returns. From September to November it tends to show
down word returns, December it tends to show up word returns. Since the
Reliance Growth Fund shows increase growth in December. So the investors
are not to invest in the fund.

Page | 41
(ii) RELIANCE VISION FUND
TABLE NO: 3.4
RELIANCE VISION FUND THE YEAR OF 2011
Month Treynor Sharpe Jensen

Jan 12.96 6.57 7.15

Feb 2.34 4.80 3.29

Mar 7.99 8.56 9.56

Apr 5.68 4.32 5.90

May -12.08 -3.80 -13.21

Jun 1.96 3.67 2.80

Jul 0.56 3.70 2.67

Aug 16.47 3.86 13.40

Sep 7.50 3.75 8.65

Oct 8.06 3.78 6.54

Nov 1.81 3.54 4.04

Dec 6.51 3.60 2.10

β 0.96

S.D 1.75

Page | 42
 20

15

10
RETURNS

5
Treynor
0
Sharpe
-5 Jensen
-10

-15
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.4, January to April ratios show the positive return and May it shows
the Negative returns. From June to December it tends to show upward returns. Since
the Reliance Vision Fund shows increase growth from June. So the investors are to
invest in the fund.

Page | 43
TABLE NO: 3.5
RELIANCE VISION FUND THE YEAR OF 2012
Month Treynor Sharpe Jensen

Jan 2.56 3.87 2.67

Feb 1.78 4.68 3.85

Mar 2.38 3.75 2.56

Apr 13.45 3.87 9.95

May 5.16 3.80 5.65

Jun 7.01 3.75 3.77

Jul 4.10 3.65 5.08

Aug 3.98 3.46 3.55

Sep 7.45 3.60 10.65

Oct 13.05 3.80 15.06

Nov 5.87 3.86 4.83

Dec 14.05 3.76 11.65

β 0.97

S.D 1.73

Page | 44
 16
14
12
10 Treynor
RETURNS 8
6 Sharpe
4
Jensen
2
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovDec
MONTHS

Interpretation
From the chart 3.5, From January to December it tends to show the positive return.
From January it tends to show upward returns. Since the Reliance Vision Fund shows
increase growth from January. So the investors are to invest in the fund.

Page | 45
TABLE NO: 3.6
RELIANCE VISION FUND THE YEAR OF 2013
Month Treynor Sharpe Jensen

Jan -18.27 -3.67 -16.35

Feb -5.08 -3.86 -3.85

Mar -8.63 -3.80 -11.26

Apr 3.77 9.97

May -5.99 -3.87 -5.76

Jun -17.30 -3.32 -15.87

Jul 14.51 9.86 11.24

Aug 1.05 3.45 1.95

Sep -9.80 -3.56 -10.85

Oct -20.79 -3.87 -23.15

Nov -7.48 -3.64 -6.73

Dec 9.34 3.73 8.37

β 0.99

S.D 2.67

Page | 46
 15
10
5
0
RETURNS -5
Treynor
-10
-15 Sharpe
-20 Jensen
-25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.6, January to March it shows the negative return and April it shows
the Negative returns. From September to November it tends to show down word
returns, December it tends to show up word returns. Since the Reliance Vision Fund
shows increase growth in December. So the investors are not to invest in the fund.

Page | 47
(iii) RELIANCE BANKING FUND
TABLE NO: 3.7
RELIANCE BANKING FUND THE YEAR OF 2011
Month Treynor Sharpe Jensen

Jan -0.35 -4.53 -1.57

Feb -0.58 -4.24 -2.63

Mar 2.87 3.76 3.45

Apr -3.46 -5.67

May -9.53 -3.87 -10.97

Jun -12.58 -3.43 -11.58

Jul 9.87 3.80 10.59

Aug 13.34 3.76 15.30

Sep 4.17 3.56 5.18

Oct 3.44 3.78 4.92

Nov 4.87 3.65 5.73

Dec -3.75 -3.67 -2.30

β 0.84

S.D 1.35

Page | 48
 20
15
10 Treynor
5 Sharpe
RETURNS

0 Jensen
-5
-10
-15
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.7, From January to February ratios show the negative return and
March it shows the Positive returns. From July to November it tends to show upward
returns. Since the Reliance Banking Fund shows increase growth from July. So the
investors are to invest in the fund.

Page | 49
TABLE NO: 3.8
RELIANCE BANKING FUND THE YEAR OF 2012

Month Treynor Sharpe Jensen

Jan 2.85 3.80 2.88

Feb -9.83 -4.53 -8.73

Mar 0.30 3.37 1.53

Apr 3.87 15.30

May 10.77 3.65 11.57

Jun 5.48 3.58 6.87

Jul 6.11 3.80 8.35

Aug 2.80 3.45 3.72

Sep 11.94 4.54 13.25

Oct 3.62 3.47 5.30

Nov 6.30 3.58 9.90

Dec 6.63 3.65 8.97

β 0.92

S.D 1.45

Page | 50
 20
15
10
5 Treynor
RETURNS

0 Sharpe
-5 Jensen
-10
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.8, January ratios show the positive return and February it shows the
Negative returns. From March to December it tends to show upward returns. Since the
Reliance Banking Fund shows increase growth from March. So the investors are to
invest in the fund.

Page | 51
TABLE NO: 3.9
RELIANCE BANKING FUND THE YEAR OF 2013

Month Treynor Sharpe Jensen

Jan -10.49 -5.67 -11.56

Feb -8.86 -4.63 -6.38

Mar -11.83 -3.80 -9.67

Apr 3.96 13.57

May -13.10 -3.58 -11.37

Jun -16.99 -3.76 -18.58

Jul 18.09 3.97 19.90

Aug -6.78 -3.58 -9.63

Sep 1.34 3.26 2.87

Oct -21.44 -3.96 -18.37

Nov -7.12 -3.45 -5.68

Dec 15.03 3.98 17.64

β 0.89

S.D 2.36

Page | 52
 20
10
0
Treynor
RETURNS

-10
Sharpe
-20
Jensen
-30
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.9, From January to March ratios show the negative return and April
it shows the Positive returns. July and December it tends to show upward returns.
Since the Reliance Banking Fund shows down word trend. So the investors are not to
invest in the fund

Page | 53
(iv) RELIANCE REGULAR SAVING FUND

TABLE NO: 3.10

RELIANCE REGULAR SAVING FUND THE YEAR OF 2011
Month Treynor Sharpe Jensen

Jan 2.09 3.12 2.92

Feb 0.68 3.02 1.35

Mar 11.78 3.95 13.34

Apr 3.69 10.30

May -13.18 -3.97 -15.57

Jun -3.65 -3.68 -2.39

Jul -3.02 -3.12 -5.98

Aug 22.03 4.50 24.36

Sep 9.80 3.71 11.47

Oct 1.65 3.05 3.34

Nov 11.63 3.96 14.56

Dec 2.34 3.15 4.38

β 0.87

S.D 1.68

Page | 54
 25
20
15
10
5 Treynor
RETURNS 0
-5 Sharpe
-10
-15 Jensen
-20
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.10, From January to April ratios show the positive return and may to
July it shows the Negative returns. From August to December it tends to show upward
returns. Since the Reliance Regular Saving Fund shows increase growth from March.
So the investors are to invest in the fund

Page | 55
TABLE NO: 3.11
RELIANCE REGULAR SAVING FUND THE YEAR OF 2012
Month Treynor Sharpe Jensen

Jan 1.58 2.97 1.85

Feb -10.95 -3.68 -11.34

Mar -1.16 -3.12 -2.32

Apr 3.72 13.98

May 5.93 3.64 7.23

Jun 2.13 3.02 4.36

Jul 4.25 3.35 5.32

Aug 1.15 3.05 2.56

Sep 9.29 3.67 10.53

Oct 15.99 3.96 18.34

Nov 5.91 3.66 7.24

Dec 23.13 4.83 25.67

β 0.95

S.D 1.63

Page | 56
 30
25
20
15
RETURNS 10 Treynor
5
0 Sharpe
-5
-10 Jensen
-15
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.11, January ratios show the positive return and February and
March it shows the Negative returns. From April to December it tends to show
upward returns. Since the Reliance Regular Saving Fund shows increase
growth from March. So the investors are to invest in the fund.

Page | 57
TABLE NO: 3.12
RELIANCE REGULAR SAVING FUND THE YEAR OF 2013
Month Treynor Sharpe Jensen

Jan -13.44 -3.67 -15.63

Feb -3.21 -3.32 -5.06

Mar -8.76 -3.42 -10.56

Apr 3.54 9.32

May -7.60 -3.39 -8.59

Jun -15.02 -3.75 -16.35

Jul 9.92 3.67 11.47

Aug 2.38 3.06 2.92

Sep -11.84 -3.76 -13.64

Oct -24.33 -4.35 -20.37

Nov -12.51 -3.53 -15.48

Dec 13.05 3.72 14.39

β 0.93

S.D 2.53

Page | 58
 15
10
5
0

RETURNS
-5
-10 Treynor
-15 Sharpe
-20 Jensen
-25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MONTHS

Interpretation
From the chart 3.12, From January to March ratios show the negative return and April
it shows the Positive returns. July, August and December it tends to show upward
returns. Since the Reliance Regular Saving Fund shows down word trend. So the
investors are not to invest in the fund.

Page | 59
 CHAPTER - 6

FINDINGS & CONCLUSION

 Fluctuations in 2013:
All schemes experienced fluctuations during the year 2013, indicating
volatility within the market during that period.
 Reliance Banking Fund's Stability:
The Reliance Banking Fund demonstrated relatively low standard deviation
and BETA values across all years, suggesting a higher degree of stability
compared to other funds in the market.
 Low Risk of Reliance Regular Saving Fund:
The Reliance Regular Saving Fund was found to be comparatively low-risk,
particularly when considering its BETA values, indicating that it may be
suitable for investors seeking lower-risk investment options.
 Low Standard Deviation in Reliance Banking Fund (2012):
In the year 2012, the Reliance Banking Fund exhibited low standard deviation
(1.45), signaling a relatively stable performance compared to other funds
during that period.
 High Fluctuation in Reliance Growth Fund (2012-2013):
There was a significant fluctuation in the Reliance Growth Fund from January
2012 (2.48) to January 2013 (-21.27), indicating a period of high volatility and
potential risk within the fund during that timeframe.

CONCLUSION

Mutual Fund industry today, is one of the most preferred investment avenues in India.
However, with a plethora of schemes to choose from, the retail investor faces
problems in selecting funds. Though past performance alone cannot be indicative of
future performance, it is, frankly, the only quantitative way to judge how good the
present fund is. Therefore, there is a need to correctly assess the past performance of
different mutual funds Return alone should not be considered as the basis of
measurement of the performance of Reliance Mutual Fund scheme, it should also
include the risk taken by the fund manager because different funds will have different

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levels of risk attached to them. This project will be very helpful to those retail investor
companies to evaluate the performances of Reliance Mutual Fund and help them to
select the funds and improvement suggestions to fund managers.

In evaluating the performance of Reliance Mutual Fund schemes, it's essential to

consider both returns and the level of risk undertaken by the fund manager. Each fund
carries a distinct risk profile, and this should be factored into the assessment alongside
returns. This project aims to assist retail investors and companies in evaluating the
performance of Reliance Mutual Fund schemes effectively. By providing
comprehensive insights and improvement suggestions to fund managers, this initiative
seeks to empower investors in making informed investment decisions tailored to their
risk tolerance and financial objectives.

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 CHAPTER-7
SUGGESTIONS
7.1 SUGGESTIONS

1. Deep Dive into Fund Strategy:

Conduct a comprehensive review of the investment strategy employed by the
equity schemes. Ensure that the strategy aligns with current market conditions and
is conducive to generating consistent returns over the long term.
2. Portfolio Rebalancing:
Regularly assess the composition of the equity portfolio and consider rebalancing
holdings to maintain alignment with the fund's investment objectives. This may
involve trimming overvalued stocks, reallocating resources to undervalued
opportunities, and ensuring adequate diversification.
3. Focus on Quality:
Emphasize investing in high-quality companies with strong fundamentals, robust
management teams, and sustainable business models. Prioritize companies with a
proven track record of profitability, healthy cash flows, and competitive
advantages within their respective industries.
4. Active Risk Management:
Implement proactive risk management strategies to mitigate potential downside
risks associated with equity investments. This could include measures such as
setting risk limits, employing hedging techniques, and closely monitoring
portfolio volatility.
5. Sectoral Allocation:
Evaluate sectoral allocations within the equity schemes to ensure a well-
diversified portfolio that is positioned to capitalize on growth opportunities across
different sectors of the economy. Adjust allocations based on sectoral outlooks and
market dynamics.
6. Performance Benchmarking:
Continuously benchmark the performance of equity schemes against relevant
market indices and peer group funds. This comparison can provide valuable
insights into relative performance and help identify areas for improvement.

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7. Investor Communication: Enhance communication with investors by providing
regular updates on fund performance, investment strategy, and market outlook.
Transparent communication builds trust and confidence among investors and
fosters long-term relationships.
8. Talent Development:
Invest in the professional development of fund managers and research analysts
responsible for managing equity schemes. Providing access to training programs,
industry conferences, and market research resources can help enhance investment
decision-making capabilities.
9. Adaptability to Market Changes:
Stay nimble and adaptable to evolving market conditions by continuously
monitoring macroeconomic trends, geopolitical developments, and regulatory
changes that may impact equity markets. Flexibility in adjusting the investment
approach accordingly is crucial for optimizing returns.
10. Regular Performance Reviews:
Conduct regular performance reviews of equity schemes to evaluate their
effectiveness in achieving stated objectives. Identify strengths and weaknesses in
the investment process and make necessary adjustments to enhance performance.

By implementing these suggestions, Reliance Mutual Funds can strive to improve the
performance of their equity schemes and deliver superior returns to investors over
time.

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 CHAPTER-8

REFERENCE

https://shodhganga.inflibnet.ac.in/handle/10603/387459

https://www.scribd.com/document/418661246/Electronic-Payment-Current-
Scenario-and-Scope-for-Improvement

https://journalppw.com/

https://www.jstor.org/stable/249008?seq=1#page_scan_tab_content

http://rbi.org.in/scripts/publicationvisiondocument.aspx?id=678

www.ijcrt.org

https://www.researchgate.net/publication/349381000

https://www.statista.com/outlook/296 /119/digital-payments/

http://cashlessindia.gov.in/aeps.html

https://www.pwc.in/consulting/financial-services/fintech/dp/impact-of-the-
covid-19-outbreak-on-digital- payments.html

https://www.thehindu.com/data

https://www.outlookindia.com

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