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COMPARITIVE STUDY OF RELIANCE AND UTI MUTUAL FUNDS
RICHARD GAURAB SARKAR
NAME: RICHARD GAURAB SARKAR
Before we get into thick of things, I would like to add a few words of appreciation for the people who have been a part of this project right from its inception. The writing of this project has been one of the significant academic challenges I have faced and without the support, patience, and guidance of the people involved, this task would not have been completed. It is to them I owe my deepest gratitude.
me immense pleasure in presenting this project report on
"COMPARATIVE STUDY OF RELIANCE AND UTI MUTUAL FUNDS". It has been my privilege to have a team of project guide who have assisted me from the commencement of this project. The success of this project is a result of sheer hard work, and determination put in by me with the help of my project guide.
I hereby take this opportunity to add a special note of thanks for Professor Shouvik Sircar, who undertook to act as my mentor despite his many other academic and professional commitments. His wisdom, knowledge, and commitment to the highest standards inspired and motivated me.
Lastly I would like to thank my parents, friends and well wishers who encouraged me to do this research work and all those who contributed directly or indirectly in completing this project to whom I am obligated to.
NAME: RICHARD GAURAB SARKAR
A mutual fund is a scheme in which several people invest their money for a common financial cause. The collected money invests in the capital market and the money, which they earned, is divided based on the number of units, which they hold. The mutual fund industry started in India in a small way with the UTI Act creating what was effectively a small savings division within the RBI. Over a period of 25 years this grew fairly successfully and gave investors a good return, and therefore in 1989, as the next logical step, public sector banks and financial institutions were allowed to float mutual funds and their success emboldened the government to allow the private sector to foray into this area. The advantages of mutual fund are professional management, diversification, economies of scale, simplicity, and liquidity. The disadvantages of mutual fund are high costs, over-diversification, possible tax consequences, and the inability of management to guarantee a superior return. The biggest problems with mutual funds are their costs and fees it include Purchase fee, Redemption fee, Exchange fee, Management fee, Account fee & Transaction Costs. There are some loads which add to the cost of mutual fund. Load is a type of commission depending on the type of funds. Mutual funds are easy to buy and sell. You can either buy them directly from the fund company or through a third party. Before investing in any funds one should consider some factor like objective, risk, Fund Manager‟s and scheme track record, Cost factor etc. There are many, many types of mutual funds. You can classify funds based Structure (openended & close-ended), Nature (equity, debt, balanced), Investment objective (growth, income, money market) etc. A code of conduct and registration structure for mutual fund intermediaries, which were subsequently mandated by SEBI. In addition, this year AMFI was involved in a number of developments and enhancements to the regulatory framework.
NAME: RICHARD GAURAB SARKAR
Secondary data collection 1. books etc. Secondary data are also made available through business magazines. NAME: RICHARD GAURAB SARKAR ROLL. 2. Primary data collection 2. annual reports of the company etc. companies balance sheet. The data collection was mainly aimed at to collect information about Mutual Funds in India and also to bring out a comparison between Reliance Mutual funds and UTI Mutual Funds.Primary data The primary data is that which is collected fresh or first hand. Primary data can be collected through interview. It will save the time. government journals.Secondary data The secondary data are those which have already been collected and stored. and for first time which is original in nature. Secondary data are easily collected from records.NO:13 Page 4 . to support the secondary data.RESEARCH METHODOLOGY There are two types of data collection methods available. journals. questionnaire etc. money and efforts to collect the data. The project is done mainly with the help of the secondary data collected through different magazines. books and websites. 1.
To study some of the mutual fund schemes.NO:13 Page 5 . Observe the fund management process of mutual funds. To give an idea of the types of schemes available. To give a brief idea about the benefits available from Mutual Fund investment.OBJECTIVE To bring out a comparison between UTI mutual funds and Reliance Mutual funds. NAME: RICHARD GAURAB SARKAR ROLL. Explore the recent developments in the mutual funds in India. To study some mutual fund companies and their funds. To give an idea about the regulations of mutual funds. Though I tried to collect some primary data but they were too inadequate for the purposes of the study. The data provided by the prospects may not be 100% correct as they too have their limitations. LIMITATIONS The lack of information sources for the analysis part. Time and money are critical factors limiting this study. To discuss about the market trends of Mutual Fund investment. The study is limited to selected mutual fund schemes.
2. UTI MUTUAL FUND COMPARITIVE ANALYSIS OF THE PERFORMANCE 5. 8. OF TOP FIVE MUTUAL FUNDS OF RELAINCE LTD AND UTI FOR THE LAST 5 YRS. TOPICS INTRODUCTION OF MUTUAL FUND WORKING OF MUTUAL FUND MUTUAL FUND IN INDIA RELIANCE MUTUAL FUND vs.INDEX SRNO. 1. 4. 6. 3. 7. FUTURE PROSPECT OF MUTUAL FUNDS IN INDIA CONCLUSION BIBLOGRAPHY 65 66 67 64 PAGE NO 7 31 38 41 NAME: RICHARD GAURAB SARKAR ROLL.NO:13 Page 6 .
INTRODUCTION OF MUTUAL FUND
There are a lot of investment avenues available today in the financial market for an investor with an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions. However they proved too costly for a small investor. These investors have found a good shelter with the mutual funds.
CONCEPT OF MUTUAL FUND:
A mutual fund is a common pool of money into which investors place their contributions that are to be invested in accordance with a stated objective. The ownership of the fund is thus joint or “mutual”; the fund belongs to all investors. A single investor‟s ownership of the fund is in the same proportion as the amount of the contribution made by him or her bears to the total amount of the fund.
NAME: RICHARD GAURAB SARKAR
Mutual Funds are trusts, which accept savings from investors and invest the same in diversified financial instruments in terms of objectives set out in the trusts deed with the view to reduce the risk and maximize the income and capital appreciation for distribution for the members. A Mutual Fund is a corporation and the fund manager‟s interest is to professionally manage the funds provided by the investors and provide a return on them after deducting reasonable management fees. The objective sought to be achieved by Mutual Fund is to provide an opportunity for lower income groups to acquire without much difficulty financial assets. They cater mainly to the needs of the individual investor whose means are small and to manage investors portfolio in a manner that provides a regular income, growth, safety, liquidity and diversification opportunities.
“Mutual funds are collective savings and investment vehicles where savings of small (or sometimes big) investors are pooled together to invest for their mutual benefit and returns distributed proportionately”. “A mutual fund is an investment that pools your money with the money of an unlimited number of other investors. In return, you and the other investors each own shares of the fund. The fund's assets are invested according to an investment objective into the fund's portfolio of investments. Aggressive growth funds seek long-term capital growth by investing primarily in stocks of fast-growing smaller companies or market segments. Aggressive growth funds are also called capital appreciation funds”.
NAME: RICHARD GAURAB SARKAR
Why Select Mutual Fund?
The risk return trade-off indicates that if investor is willing to take higher risk then correspondingly he can expect higher returns and vise versa if he pertains to lower risk instruments, which would be satisfied by lower returns. For example, if an investors opt for bank FD, which provide moderate return with minimal risk. But as he moves ahead to invest in capital protected funds and the profit-bonds that give out more return which is slightly higher as compared to the bank deposits but the risk involved also increases in the same proportion. Thus investors choose mutual funds as their primary means of investing, as Mutual funds provide professional management, diversification, convenience and liquidity. That doesn‟t mean mutual fund investments risk free. This is because the money that is pooled in are not invested only in debts funds which are less riskier but are also invested in the stock markets which involves a higher risk but can expect higher returns. Hedge fund involves a very high risk since it is mostly traded in the derivatives market which is considered very volatile.
RETURN RISK MATRIX
HIGHIER RISK MODERATE RETURNS HIGHER RISK HIGHIER RETURNS
Bank FD Postal Savings
LOWER RISK LOWER RETURNS
LOWER RISK HIGIER RETURNS
NAME: RICHARD GAURAB SARKAR
1993 was the year in which the first Mutual Fund Regulations came into being.004 crores. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. except UTI were to be registered and governed. SECOND PHASE – 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS): 1987 marked the entry of non. THIRD PHASE – 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS): With the entry of private sector funds in 1993. under which all mutual funds. SBI Mutual Fund was the first non. giving the Indian investors a wider choice of fund families. At the end of 1988 UTI had Rs. 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.700 crores of assets under management. Also. LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. The first scheme launched by UTI was Unit Scheme 1964. NAME: RICHARD GAURAB SARKAR ROLL. Bank of India (Jun 90).47.6. At the end of 1993.UTI. Bank of Baroda Mutual Fund (Oct 92). a new era started in the Indian mutual fund industry.NO:13 Page 10 . It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India.UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87). Indian Bank Mutual Fund (Nov 89).HISTORY OF MUTUAL FUNDS 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 mutual fund industry had assets under management of Rs. Punjab National Bank Mutual Fund (Aug 89). 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. public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).
The Specified Undertaking of Unit Trust of India. conforming to the SEBI Mutual Fund Regulations. FOURTH PHASE – SINCE FEBRUARY 2003: In February 2003. As at the end of September. the mutual fund industry has entered its current phase of consolidation and growth. PNB. 1.The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions.153108 crores under 421 schemes.44.835 crores as at the end of January 2003.805 crores. NAME: RICHARD GAURAB SARKAR ROLL. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.000 crores of assets under management and with the setting up of a UTI Mutual Fund. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. sponsored by SBI. and with recent mergers taking place among different private sector funds. BOB and LIC.21. representing broadly. following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. which manage assets of Rs. The number of mutual fund houses went on increasing.541 crores of assets under management was way ahead of other mutual funds.76.NO:13 Page 11 . the assets of US 64 scheme. It is registered with SEBI and functions under the Mutual Fund Regulations. As at the end of January 2003. there were 29 funds. The Unit Trust of India with Rs. assured return and certain other schemes. there were 33 mutual funds with total assets of Rs. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The second is the UTI Mutual Fund Ltd. 2004.29.
The graph indicates the growth of assets under management over the years.com) NAME: RICHARD GAURAB SARKAR ROLL. GROWTH IN ASSETS UNDER MANAGEMENT (Source: www.amfiindia.NO:13 Page 12 .
The risk reduction is one of the most important benefits of a collective investment vehicle like the mutual fund. or he buys a share or debenture on his own or in any other from. it is because of the many advantages they have over other forms and the avenues of investing. The following are the major advantages offered by mutual funds to all investors: 1. particularly for the investor who has limited resources available in terms of capital and the ability to carry out detailed research and market monitoring.ADVANTAGES OF MUTUAL FUNDS: If mutual funds are emerging as the favorite investment vehicle. While investing in the pool of funds with investors. 3. Professional Management: Even if an investor has a big amount of capital available to him. thus enabling him to hold a diversified investment portfolio even with a small amount of investment that would otherwise require big capital. the potential losses are also shared with other investors. 2. ensure a much better return than what an investor can manage on his own. all the risk of potential loss is his own. Few investors have the skill and resources of their own to succeed in today‟s fast moving. whether he places a deposit with a company or a bank. The investment management skills. NAME: RICHARD GAURAB SARKAR ROLL.NO:13 Page 13 . Portfolio Diversification: Each investor in the fund is a part owner of all the fund‟s assets. global and sophisticated markets. he benefits from the professional management skills brought in by the fund in the management of the investor‟s portfolio. Reduction/Diversification Of Risk: When an investor invests directly. along with the needed research into available investment options.
or selling them in the market if the fund is close-end.4. 6.000 from the Total Income will be admissible in respect of income from investments specified in Section 80L.NO:13 Page 14 . 8. NAME: RICHARD GAURAB SARKAR ROLL. However. Reduction Of Transaction Costs: What is true of risk as also true of the transaction costs. The investor bears all the costs of investing such as brokerage or custody of securities. 9. 2002 will be subject to tax in the assessment of all Unit holders. Liquidity: Often. by selling their units to the fund if open-ended. 7. he has the benefit of economies of scale. Tax Benefits: Any income distributed after March 31. Choice of Schemes: Mutual Funds offer a family of schemes to suit your varying needs over a lifetime. get updated market information and so on. as a measure of concession to Unit holders of open-ended equity-oriented funds. they can generally cash their investments any time. a benefit passed on to its investors. 5. Units of the schemes are not subject to Wealth-Tax and Gift-Tax. 2003. easily and quickly sell. When going through a fund. In case of Individuals and Hindu Undivided Families a deduction upto Rs. will be taxed at a concessional rate of 10.5%. income distributions for the year ending March 31. including income from Units of the Mutual Fund. Liquidity of investment is clearly a big benefit. When they invest in the units of a fund. investors hold shares or bonds they cannot directly. Investors can easily transfer their holding from one scheme to the other. the funds pay lesser costs because of larger volumes. Convenience And Flexibility: Mutual fund management companies offer many investor services that a direct market investor cannot get.
NAME: RICHARD GAURAB SARKAR ROLL. Transparency: You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme. the proportion invested in each class of assets and the fund manager's investment strategy and outlook. DISADVANTAGES OF INVESTING THROUGH MUTUAL FUNDS: 1. 10.NO:13 Page 15 . Investing through fund means he delegates this decision to the fund managers. The investor pays investment management fees as long as he remains with the fund.9. Well Regulated: All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. No Tailor-Made Portfolio: Investors who invest on their own can build their own portfolios of shares and bonds and other securities. The operations of Mutual Funds are regularly monitored by SEBI. However. which he would not incur in direct investing. Fees are payable even if the value of his investments is declining. The very-high-net-worth individuals or large corporate investors may find this to be a constraint in achieving their objectives. An investor can choose from different investment plans and constructs a portfolio to his choice.a large number of different schemes. this shortcoming only means that there is a cost to obtain the mutual fund services.within their own management company. A mutual fund investor also pays fund distribution costs. However. most mutual fund managers help investors overcome this constraint by offering families of funds. No Control Over Costs: An investor in a mutual fund has no control of the overall costs of investing. albeit in return for the professional management and research. 2.
5. 4. NAME: RICHARD GAURAB SARKAR ROLL. 7. Managing A Portfolio Of Funds: Availability of a large number of funds can actually mean too much choice for the investor. quite similar to the situation when he has individual shares or bonds to select. The average mutual fund manager is no better at picking stocks than the average nonprofessional.3. Buried Costs: Many mutual funds specialize in burying their costs and in hiring salesmen who do not make those costs clear to their clients. He may again need advice on how to select a fund to achieve his objectives. Dilution: Mutual funds generally have such small holdings of so many different stocks that insanely great performance by a fund's top holdings still doesn't make much of a difference in a mutual fund's total performance. but charges fees. The Wisdom Of Professional Management: That's right. a mutual fund puts you in the passenger seat of somebody else's car 6. this is not an advantage. No Control: Unlike picking your own individual stocks.NO:13 Page 16 .
There are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual funds in categories. thus mutual funds has Variety of flavors.Ended Schemes Close . an investors can go for picking a mutual fund might be easy. risk tolerance and return expectations etc.NO:13 Page 17 .TYPES OF MUTUAL FUNDS SCHEMES IN INDIA Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position.Ended Schemes Interval Schemes BY NATURE BY INVESTMENT OBJECTIVE Growth Schemes OTHER SCHEMES Tax Saving Schemes Index Schemes Sector Specific Schemes Equity Fund Debt Funds Income Schemes Balanced Funds Balanced Schemes Money Market Schemes NAME: RICHARD GAURAB SARKAR ROLL. TYPES OF MUTUAL FUNDS BY STRUCTURE Open . mentioned below. Being a collection of many stocks.
NAME: RICHARD GAURAB SARKAR ROLL. which combines the features of open-ended and close-ended schemes. These do not have a fixed maturity. In order to provide an exit route to the investors. The key feature of open-end schemes is liquidity. The fund is open for subscription only during a specified period. BY STRUCTURE 1.NO:13 Page 18 . SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor. Interval Schemes: Interval Schemes are that scheme. some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices.Ended Schemes: A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed.Ended Schemes: An open-end fund is one that is available for subscription all through the year. Open . Close . 3. 2. The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices.A).
NAME: RICHARD GAURAB SARKAR ROLL. 2. These scheme ranks slightly high on the risk-return matrix when compared with other debt schemes. It gets benefit of both equity and debt market. Debt Funds: The objective of these Funds is to invest in debt papers. these funds ensure low risk and provide stable income to the investors. MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in equities. BY NATURE 1. The Equity Funds are sub-classified depending upon their investment objective. thus Equity funds rank high on the riskreturn matrix. These Funds carry zero Default risk but are associated with Interest Rate risk. Equity Fund: These funds invest a maximum part of their corpus into equities holdings. private companies. banks and financial institutions are some of the major issuers of debt papers. Government authorities. These schemes are safer as they invest in papers backed by Government. By investing in debt instruments.B). Income Funds: Invest a major portion into various debt instruments such as bonds.NO:13 Page 19 . popularly known as Government of India debt papers. The structure of the fund may vary different for different schemes and the fund manager‟s outlook on different stocks. as follows: Diversified Equity Funds Mid-Cap Funds Sector Specific Funds Tax Savings Funds (ELSS) Equity investments are meant for a longer time horizon. Debt funds are further classified as: Gilt Funds: Invest their corpus in securities issued by Government. corporate debentures and Government securities.
Some portion of the corpus is also invested in corporate debentures. which is pre-defined in the objectives of the fund. Balanced Funds: As the name suggest they. which are in line with pre-defined investment objective of the scheme. are a mix of both equity and debt funds. These funds are meant for short-term cash management of corporate houses and are meant for an investment horizon of 1day to 3 months. The investor can align his own investment needs with the funds objective and invest accordingly. These funds provides easy liquidity and preservation of capital. Further the mutual funds can be broadly classified on the basis of investment parameter viz. These schemes invest in short-term instruments like Treasury Bills. NAME: RICHARD GAURAB SARKAR ROLL. These schemes aim to provide investors with the best of both the worlds. inter-bank call money market. CPs and CDs. Each category of funds is backed by an investment philosophy. 3. These funds primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Equity part provides growth and the debt part provides stability in returns. Short Term Plans (STPs): Meant for investment horizon for three to six months. Liquid Funds: Also known as Money Market Schemes.NO:13 Page 20 . They invest in both equities and fixed income securities. These schemes rank low on risk-return matrix and are considered to be the safest amongst all categories of mutual funds.
no commission is payable on purchase or sale of units in the fund. commercial paper and inter-bank call money. Capital appreciation in such schemes may be limited. a commission will be payable. Load Funds: A Load Fund is one that charges a commission for entry or exit. in the proportion indicated in their offer documents (normally 50:50). preservation of capital and moderate income. BY INVESTMENT OBJECTIVE: Growth Schemes: Growth Schemes are also known as equity schemes. certificates of deposit. Income Schemes: Income Schemes are also known as debt schemes. The aim of these schemes is to provide capital appreciation over medium to long term. These schemes generally invest in fixed income securities such as bonds and corporate debentures. Money Market Schemes: Money Market Schemes aim to provide easy liquidity. if the fund has a good performance history. These schemes normally invest a major part of their fund in equities and are willing to bear short-term decline in value for possible future appreciation. Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. That is. NAME: RICHARD GAURAB SARKAR ROLL. each time you buy or sell units in the fund. The advantage of a no load fund is that the entire corpus is put to work. short-term instruments. No-Load Funds: A No-Load Fund is one that does not charge a commission for entry or exit.C). Typically entry and exit loads range from 1% to 2%. These schemes invest in both shares and fixed income securities. such as treasury bills. It could be worth paying the load. The aim of these schemes is to provide regular and steady income to investors.NO:13 Page 21 . These schemes generally invest in safer. That is.
Fast Moving Consumer Goods (FMCG). The returns in these funds are dependent on the performance of the respective sectors/industries. they are more risky compared to diversified funds.NO:13 Page 22 . the returns from such schemes would be more or less equivalent to those of the Index. contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time.g. Software. And hence. Index Schemes: Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50. Pharmaceuticals. 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. Under Sec. The percentage of each stock to the total holding will be identical to the stocks index weightage. The portfolio of these schemes will consist of only those stocks that constitute the index. e. NAME: RICHARD GAURAB SARKAR ROLL. While these funds may give higher returns. etc. Petroleum stocks.OTHER SCHEMES Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time.88 of the Income Tax Act.
10. depending on the markets value of the fund‟s assets. Since the units held by investor evidence the ownership of the fund‟s assets. and the value of one unit is Rs. the value of his ownership of the fund will be Rs. it is necessary to establish the value of his part. 30. The value of an investor‟s part ownership is thus determined by the NAV of the number of units held. This is generally called the Net Asset Value (NAV) of one unit or one share.00(1000/100*3). causing the Net Asset Value also to fluctuate. the value of our investors holding of 3 units will now be (1200/100*3) Rs.NO:13 Page 23 . For example. if the value of our fund‟s asset increased from Rs. Note that the value of the fund‟s investments will keep fluctuating with the market-price movements. If the value of a fund‟s assets stands at Rs.00 (1000/100). In other words. If a single investor in fact owns 3 units. 36. The investment value can go up or down. 1000 to 1200. 100 and it has 10 investors who have bought 10 units each. NAME: RICHARD GAURAB SARKAR ROLL. Calculation of NAV: Let us see an example. each share or unit that an investor holds needs to be assigned a value. the total numbers of units issued are 100. the value of the total assets of the fund when divided by the total number of units issued by the mutual fund gives us the value of one unit.NET ASSET VALUE (NAV): Since each owner is a part owner of a mutual fund.
including shareholder transaction costs. 1. ii) Redemption Fee: It is another type of fee that some funds charge their shareholders when they sell or redeem shares. PERIODIC FEES i) Management Fee: Management fees are fees that are paid out of fund assets to the fund's investment adviser for investment portfolio management. TRANSACTION FEES i) Purchase Fee: It is a type of fee that some funds charge their shareholders when they buy shares. They are also called maintenance fees. investment advisory fees. NAME: RICHARD GAURAB SARKAR ROLL. Running a mutual fund involves costs.NO:13 Page 24 ." 2. Unlike a front-end sales load. Funds pass along these costs to investors in a number of ways. iii) Exchange Fee: Exchange fee that some funds impose on shareholders if they exchange (transfer) to another fund within the same fund group or "family of funds. a redemption fee is paid to the fund (not to a broker) and is typically used to defray fund costs associated with a shareholder's redemption. a purchase fee is paid to the fund (not to a broker) and is typically imposed to defray some of the fund's costs associated with the purchase. Unlike a deferred sales load. any other management fees payable to the fund's investment adviser or its affiliates. and marketing and distribution expenses.MUTUAL FUND FEES AND EXPENSES Mutual fund fees and expenses are charges that may be incurred by investors who hold mutual funds. and administrative fees payable to the investment adviser that are not included in the "Other Expenses" category.
Front-end loads reduce the amount of your investment. For example. NAME: RICHARD GAURAB SARKAR ROLL. a front-end load cannot be higher than 8. The Rs. this is a fee paid when shares are purchased.500 sales load you must pay comes off the top. The different types of loads are outlined below. Unlike the Total Expense Ratio these costs are usually not reported. 3.9500 will be invested in the fund.10. and the remaining Rs.5% of your investment." this fee typically goes to the brokers that sell the fund's shares. Funds with a high turnover ratio. Also known as a "front-end load.000 and want to invest it in a mutual fund with a 5% front-end load. time of sale. let's say you have Rs. or a mix of both. Front-end load: Also known as Sales Charge. charges may be incurred at time of purchase. According to NASD rules.NO:13 Page 25 . LOADS Definition of a load Load funds exhibit a "Sales Load" with a percentage charge levied on purchase or sale of shares. OTHER OPERATING EXPENSES Transaction Costs: These costs are incurred in the trading of the fund's assets.ii) Account Fee: Account fees are fees that some funds separately impose on investors in connection with the maintenance of their accounts. some funds impose an account maintenance fee on accounts whose value is less than a certain dollar amount. Depending on the type of load a mutual fund exhibits. For example. A load is a type of Commission (remuneration). or investing in illiquid or exotic markets usually face higher transaction costs.
NO:13 Page 26 ." this fee typically goes to the brokers that sell the fund's shares. as outlined above. not every type of shareholder fee is a "sales load. No-load Fund: As the name implies. Instead a back-end load may be charged if the shares purchased are sold within a given time frame. Level load / Low load: It's similar to a back-end load in that no sales charges are paid when buying the fund. this means that the fund does not charge any type of sales load. such as purchase fees. is that this time frame where charges are levied is shorter. redemption fees." A no-load fund may charge fees that are not sales loads. NAME: RICHARD GAURAB SARKAR ROLL. But. exchange fees. Also known as a "back-end load.Back-end load: Also known as Deferred Sales Charge. The distinction between level loads and low loads as opposed to back-end loads. The amount of this type of load will depend on how long the investor holds his or her shares and typically decreases to zero if the investor holds his or her shares long enough. this is a fee paid when shares are sold. and account fees.
It is necessary. A higher entry load or exit load also will eat into your returns. Fund Manager’s and scheme track record: Since you are giving your hard earned money to someone to manage it.NO:13 Page 27 . It is very crucial in a debt fund. Those with no risk tolerance should go for debt schemes. Look at the performance of the scheme against relevant market benchmarks and its competitors. as any conflict would directly affect your prospective returns. as they are relatively safer. Cost factor: Though the AMC fee is regulated. as it will devour a few percentages from your modest returns. NAME: RICHARD GAURAB SARKAR ROLL. etc. Your risk capacity and capability: This dictates the choice of schemes. It also should be professional and maintain high transparency in operations. Examples: pension plans. This is because the money is deducted from your investments. sector-specific schemes. Look at the performance of a longer period. Investors that are even more aggressive can try schemes that invest in specific industry or sectors. you should look at the expense ratio of the fund before investing. you should pick schemes that meet your specific needs.SELECTION PARAMETERS FOR MUTUAL FUND Your objective: The first point to note before investing in a fund is to find out whether your objective matches with the scheme. Aggressive investors can go for equity investments. children‟s plans. it is imperative that he manages it well. A higher expense ratio can be justified only by superlative returns. as it will give you how the scheme fared in different market conditions. Similarly. It is also essential that the fund house you choose has excellent track record.
Naturally. If fund holdings increase in price but are not sold by the fund manager.NO:13 Page 28 . Most funds also pass on these gains to investors in a distribution. Never rely on last year's top performers. Funds will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares. Each year end. Morningstar rates mutual funds. Types of Returns on Mutual Fund: There are three ways. many financial publications list the year's best performing mutual funds. very eager investors will rush out to purchase shares of last year's top performers. If the fund sells securities that have increased in price. That's a big mistake. changing market conditions make it rare that last year's top performer repeats that ranking for the current year. and the current market conditions. NAME: RICHARD GAURAB SARKAR ROLL. Remember. the fund's shares increase in price. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution. the fund manager. You can then sell your mutual fund shares for a profit.Also. Mutual fund investors would be well advised to consider the fund prospectus. the fund has a capital gain. where the total returns provided by mutual funds can be enjoyed by investors: Income is earned from dividends on stocks and interest on bonds.
This is known as Market Risk. 4. may it be big corporations or smaller mid-sized companies. A well-diversified portfolio might help mitigate this risk. Inflation is the loss of purchasing power over time. In order to do this you must first be aware of the different types of risks involved with your investment decision. Broad outside influences affecting the market in general lead to this." "Remember the time when a bus ride costed 50 paise?" "Mehangai Ka Jamana Hai. the investor to decide how much risk you are willing to take. 2. Hence it is upto you. A lot of times people make conservative investment decisions to protect their capital but end up with a sum of money that can buy less than what the principal could at the time of the investment. Inflation Risk: Things you hear people talk about: "Rs. 3. 100 today is worth more than Rs. Credit Risk: The debt servicing ability (may it be interest payments or repayment of principal) of a company through its cashflows determines the Credit Risk faced by you. This happens NAME: RICHARD GAURAB SARKAR ROLL. 100 tomorrow. Higher the risk greater the returns / loss and lower the risk lesser the returns/loss. This is true.RISK FACTORS OF MUTUAL FUNDS: 1. A Systematic Investment Plan (“SIP”) that works on the concept of Rupee Cost Averaging (“RCA”) might help mitigate this risk. A „AAA‟ rating is considered the safest whereas a „D‟ rating is considered poor credit quality. Inflation.NO:13 Page 29 . Market Risk: Sometimes prices and yields of all securities rise and fall. This credit risk is measured by independent rating agencies like CRISIL who rate companies and their paper." The root cause. The Risk-Return Trade-Off: The most important relationship to understand is the risk-return trade-off.
7. 6. Political / Government Policy Risk: Changes in government policy and political decision can change the investment environment.NO:13 Page 30 . Equity might be negatively affected as well in a rising interest rate environment. If interest rates rise the prices of bonds fall and vice versa. 5. Liquidity Risk can be partly mitigated by diversification.when inflation grows faster than the return on your investment. NAME: RICHARD GAURAB SARKAR ROLL. They can create a favorable environment for investment or vice versa. Interest Rate Risk: In a free market economy interest rates are difficult if not impossible to predict. Changes in interest rates affect the prices of bonds as well as equities. staggering of maturities as well as internal risk controls that lean towards purchase of liquid securities. A well-diversified portfolio might help mitigate this risk. A well-diversified portfolio with some investment in equities might help mitigate this risk. Liquidity Risk: Liquidity risk arises when it becomes difficult to sell the securities that one has purchased.
you have to pay entry or exit load. NAV is important.Chapter: 2 WORKING OF MUTUAL FUNDS The mutual fund collects money directly or through brokers from investors. NAME: RICHARD GAURAB SARKAR ROLL. The income generated by selling securities or capital appreciation of these securities is passed on to the investors in proportion to their investment in the scheme. as it will determine the price at which you buy or redeem the units of a scheme. Depending on the load structure of the scheme. Mutual fund companies provide daily net asset value of their schemes to their investors. NAV is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the valuation date. The money is invested in various instruments depending on the objective of the scheme.NO:13 Page 31 . The investments are divided into units and the value of the units will be reflected in Net Asset Value or NAV of the unit.
The sponsor also appoints the Asset Management Company as fund managers. NAME: RICHARD GAURAB SARKAR ROLL. A Mutual Fund in India is allowed to issue open-end and close-end schemes under a common legal structure. The sponsor either directly or acting through the trustees will also appoint a custodian to hold funds assets.NO:13 Page 32 .e. The sponsor forms a trust and appoints a Board of Trustees. 1996. The Fund Sponsor: Sponsor is defined under SEBI regulations as any person who.STRUCTURE OF A MUTUAL FUND: India has a legal framework within which Mutual Fund have to be constituted. acting alone or in combination of another corporate body establishes a Mutual Fund. The structure that is required to be followed by any Mutual Fund in India is laid down under SEBI (Mutual Fund) Regulations. In India open and close-end funds operate under the same regulatory structure i. All these are made in accordance with the regulation and guidelines of SEBI. as unit Trusts. The sponsor of the fund is akin to the promoter of a company as he gets the fund registered with SEBI.
Mutual Fund can invite any number of investors as beneficial owners in their investment schemes. The fund then invites investors to contribute their money in common pool. The Trustees do not directly manage the portfolio of securities.NO:13 Page 33 . The Board or the Trust company as an independent body. The Fund sponsor acts as a settlor of the Trust. 1882.the Mutual Fund – may be managed by a board of trustees. for the person to qualify as a sponsor. Most of the funds in India are managed by Boards of Trustees. Mutual Funds as Trusts: A Mutual Fund in India is constituted in the form of Public trust Act. Trustees: A Trust is created through a document called the Trust Deed that is executed by the fund sponsor in favour of the trustees. by scribing to “units” issued by various schemes established by the Trusts as evidence of their beneficial interest in the fund. rather it is the Trustee or the Trustees who have the legal capacity and therefore all acts in relation to the trusts are taken on its behalf by the Trustees. Being public trusts. where the trusts are a corporate body. While the boards of trustees are governed by the Indian Trusts Act.a body of individuals. even as these investments are held in the name of the Trustees on a day-to-day basis. For this specialist function. Under the Indian Trusts Act. the trust of the fund has no independent legal capacity itself. In legal parlance the investors or the unit-holders are the beneficial owners of the investment held by the Trusts. acts as a protector of the of the unit-holders interests. It should be understood that the fund should be just a “pass through” vehicle. he must contribute at least 40% of the net worth of the Asset Management Company and possesses a sound financial track record over 5 years prior to registration. who are the beneficiaries of the trust. the appoint an Asset Management Company.a corporate body. The Trust. They ensure that the Fund is managed by ht AMC as per the defined objectives and in accordance with the trusts deeds and SEBI regulations. it would also require to comply with the Companies Act. or a trust company. 1956. contributing to its initial capital and appoints a trustee to hold the assets of the trust for the benefit of the unit-holders.As per the SEBI regulations. NAME: RICHARD GAURAB SARKAR ROLL.
The AMC is required to be approved and registered with SEBI as an AMC. Bankers: A Fund‟s activities involve dealing in money on a continuous basis primarily with respect to buying and selling units. it may undertake specified activities such as advisory services and financial consulting.The Asset Management Companies: The role of an Asset Management Company (AMC) is to act as the investment manager of the Trust under the board supervision and the guidance of the Trustees. Thus. although under the overall direction and responsibilities of the Trustees. The AMC must always act in the interest of the unit-holders and reports to the trustees with respect to its activities. Directors of the AMC. systems etc. The AMC of a Mutual Fund must have a net worth of at least Rs. Handling these securities in terms of physical delivery and eventual safekeeping is a specialized activity. a condition also applicable to other key personnel of the AMC. The custodian should be an entity independent of the sponsors and is required to be registered with SEBI. Custodian and Depositories: Mutual Fund is in the business of buying and selling of securities in large volumes. receiving the proceeds from sale of the investments and discharging its obligations towards operating expenses. both independent and nonindependent. paying for investment made. at the instructions of the AMC. The custodian is appointed by the Board of Trustees for safekeeping of securities or participating in any clearance system through approved depository companies on behalf of the Mutual Fund and it must fulfill its responsibilities in accordance with its agreement with the Mutual Fund. Besides its role as a fund manager. provided these activities are run independent of one another and the AMC‟s resources (such as personnel. deliveries of a fund‟s securities are given or received by a custodian or a depository participant.) are properly segregated by the activity.NO:13 Page 34 . With the introduction of the concept of dematerialization of shares the dematerialized shares are kept with the Depository participant while the custodian holds the physical securities. 10 Crores at all times. Thus the Fund‟s banker NAME: RICHARD GAURAB SARKAR ROLL. should have adequate professional expertise in financial services and should be individuals of high morale standing. The AMC cannot act as a Trustee of any other Mutual Fund.
The AMC and the mutual fund have to be registered with SEBI. the fund investor will find the agent to be an important interface to deal with.These regulations make it mandatory for mutual fund to have three structures of sponsor trustee and asset Management Company. The AMC is the business face of the mutual fund. Regulations. A fund may choose to carry out its activity in-house and charge the scheme for the service at a competitive market rate. Where an outside Transfer agent is used. as it manages all the affairs of the mutual fund.plays an important role to determine quality of service that the fund gives in timely delivery of remittances etc. REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA: The structure of mutual funds in India is guided by the SEBI. Transfer Agents: Transfer agents are responsible for issuing and redeeming units of the Mutual Fund and provide other related services such as preparation of transfer documents and updating investor records.NO:13 Page 35 . The sponsor of the mutual fund and appoints the trustees. since all of the investor services that a fund provides are going to be dependent on the transfer agent. NAME: RICHARD GAURAB SARKAR ROLL. The trustees are responsible to the investors in mutual fund and appoint the AMC for managing the investment portfolio. 1996.
they should not be associated with the sponsors. All mutual funds are required to be registered with SEBI before they launch any scheme. stipulate that MFs cannot gurarnatee returns in any scheme and that each scheme is subject to 20 : 25 condition [I. SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. Options and Futures. All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of Regulations. The risks associated with the schemes launched by the mutual funds sponsored by these entities are of similar type. 50% of the directors of AMC must be independent. etc. SEBI has also issued guidelines to the mutual funds from time to time to protect the interests of investors.NO:13 Page 36 . inter-alia. Thereafter.e. NAME: RICHARD GAURAB SARKAR ROLL. mutual funds sponsored by private sector entities were allowed to enter the capital market.e minimum 20 investors per scheme and one investor can hold more than 25% stake in the corpus in that one scheme]. The regulations were fully revised in 1996 and have been amended thereafter from time to time. There is no distinction in regulatory requirements for these mutual funds and all are subject to monitoring and inspections by SEBI. Commodities. Also SEBI has permitted MFs to launch schemes overseas subject various restrictions and also to launch schemes linked to Real Estate. Also. Further SEBI Regualtions. SEBI notified regulations for the mutual funds in 1993.SEBI REGULATIONS: As far as mutual funds are concerned. SEBI Regulations require that at least two thirds of the directors of trustee company or board of trustees must be independent i.
It implements a programme of training and certification for all intermediaries and other engaged in the mutual fund industry. the Reserve Bank of India and other related bodies on matters relating to the Mutual Fund Industry. It also recommends and promotes the top class business practices and code of conduct which is followed by members and related people engaged in the activities of mutual fund and asset management. Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards.NO:13 Page 37 . AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders. Till date all the AMCs are that have launched mutual fund schemes are its members. Association of Mutual Funds in India (AMFI) was incorporated on 22nd August. NAME: RICHARD GAURAB SARKAR ROLL. The Objectives of Association of Mutual Funds in India: The Association of Mutual Funds of India works with 30 registered AMCs of the country. It has certain defined objectives which juxtaposes the guidelines of its Board of Directors. 1995. The objectives are as follows: This mutual fund association of India maintains high professional and ethical standards in all areas of operation of the industry.ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI): With the increase in mutual fund players in India. The agencies who are by any means connected or involved in the field of capital markets and financial services also involved in this code of conduct of the association. It functions under the supervision and guidelines of its Board of Directors. It develops a team of well qualified and trained Agent distributors. Association of Mutual Fund of India do represent the Government of India. a need for mutual fund association in India was generated to function as a non-profit organisation. AMFI is an apex body of all Asset Management Companies (AMC) which has been registered with SEBI.
But yes. with funds trading at an average discount of 1020 percent of their net asset value. There was rather no choice apart from holding the cash or to further continue investing in shares. the market regulations did not allow portfolio shifts into alternative investments. and of course investing was out of question. The 1992 stock market scandal. The securities and Exchange Board of India (SEBI) came out with comprehensive regulation in 1993 which defined the structure of Mutual Fund and Asset Management Companies for the first time. People rarely understood. Those days. However. The performance of mutual funds in India in the initial phase was not even closer to satisfactory level. the day the concept of Mutual Fund took birth in India. One more thing to be noted. the losses by disinvestments and of course the lack of transparent rules in the whereabouts rocked confidence among the investors. to park their money in UTI Mutual Fund. The supervisory authority adopted a set of measures to create a transparent and competitive environment in mutual funds. Partly owing to a relatively weak stock market performance. mutual funds have not yet recovered. This good record of UTI became marketing tool for new entrants. but UTI remained in a monopoly position. Though the 1988 year saw some new mutual fund companies. people were miles away from the preparedness of risks factor after the liberalization. The performance of mutual funds in India suffered qualitatively. For 30 years it goaled without a single second player.Chapter: 3 MUTUAL FUNDS IN INDIA In 1963. The expectations of investors touched the sky in profitability factor. Some of them were like relaxing investment NAME: RICHARD GAURAB SARKAR ROLL. since only closed-end funds were floated in the market. the investors disinvested by selling at a loss in the secondary market. Unit Trust of India invited investors or rather to those who believed in savings. some 24 million shareholders were accustomed with guaranteed high returns by the beginning of liberalization of the industry in 1992. The net asset value (NAV) of mutual funds in India declined when stock prices started falling in the year 1992.NO:13 Page 38 .
NAME: RICHARD GAURAB SARKAR ROLL.000 crores.02. Currently there are 34 Mutual Fund organizations in India managing 1. Several private sectors Mutual Funds were launched in 1993 and 1994. The more the variety offered.NO:13 Page 39 . Mutual fund industry has seen a lot of changes in past few years with multinational companies coming into the country. introduction of open-ended funds. and paving the gateway for mutual funds to launch pension schemes. Now investors have a wide range of Schemes to choose from depending on their individual profiles. The measure was taken to make mutual funds the key instrument for long-term saving. The share of the private players has risen rapidly since then. as long as mutual fund companies are performing with lower risks and higher profitability within a short span of time. bringing in their professional expertise in managing funds worldwide. the quantitative will be investors.restrictions into the market. more and more people will be inclined to invest until and unless they are fully educated with the dos and don‟ts of mutual funds. At last to mention. In the past few months there has been a consolidation phase going on in the mutual fund industry in India.
1218. In the same year the first Mutual Fund Regulations came into existance with re-registering all mutual funds except UTI.NO:13 Page 40 . Just after ten years with private sector players penetration.05 bn. Bank of India Mutual Fund. 67bn assets under management (AUM). Indian Bank Mutual Fund. the total assets rose up to Rs. the total AUM of the industry was Rs. The private sector funds started penetrating the fund families.MUTUAL FUND COMPANIES IN INDIA: The concept of mutual funds in India dates back to the year 1963. Kothari Pioneer was the first private sector mutual fund company in India which has now merged with Franklin Templeton. Punjab National Bank Mutual Fund. By the end of 1993. The regulations were further given a revised shape in 1996. By the end of the 80s decade. by the end of its monopoly era. few other mutual fund companies in India took their position in mutual fund market. The era between 1963 and 1987 marked the existance of only one mutual fund company in India with Rs. the Unit Trust of India (UTI). 470.04 bn. Major Mutual Fund Companies in India ABN AMRO Mutual Fund Birla Sun Life Mutual Fund Bank of Baroda Mutual Fund HDFC Mutual Fund HSBC Mutual Fund ING Vysya Mutual Fund Prudential ICICI Mutual Fund State Bank of India Mutual Fund Tata Mutual Fund Unit Trust of India Mutual Fund Reliance Mutual Fund Standard Chartered Mutual Fund Franklin Templeton India Mutual Fund Morgan Stanley Mutual Fund India Escorts Mutual Fund Alliance Capital Mutual Fund Benchmark Mutual Fund Canbank Mutual Fund Chola Mutual Fund LIC Mutual Fund GIC Mutual Fund NAME: RICHARD GAURAB SARKAR ROLL. Canbank Mutual Fund. Today there are 33 mutual fund companies in India. The new entries of mutual fund companies in India were SBI Mutual Fund. The succeeding decade showed a new horizon in Indian mutual fund industry.
a subsidiary of Reliance Capital Limited. is one of the fastest growing mutual funds in the country. The sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. 1995 as Reliance Capital Mutual Fund which was changed on March 11.. 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.388 crs (AAUM for 30th Apr 09) and an investor base of over 71. Limited. 1882.Chapter: 4 RELIANCE MUTUAL FUND Vs UTI MUTUAL FUND RELIANCE MUTUAL FUND Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Limited is the Trustee. RMF is one of India‟s leading Mutual Funds. 88. which holds 93. the balance paid up capital being held by minority shareholders. It was registered on June 30.NO:13 Page 41 .Anil Dhirubhai Ambani Group. a part of the Reliance .37% of the paid-up capital of RCAM. Trustee : Reliance Capital Trustee Co.53 Lacs. NAME: RICHARD GAURAB SARKAR ROLL." Sponsor : Reliance Capital Limited. with Average Assets Under Management (AAUM) of Rs. 2004. "Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 118 cities across the country. Reliance Mutual Fund.
The Sponsor.NO:13 Page 42 . the Trustee and the Investment Manager are incorporated under the Companies Act 1956. The Main Objectives Of The Trust: 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. high performance environment aimed at delighting our customers.” Mission Statement To create and nurture a world-class. 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. Vision Statement “To be a globally respected wealth creator with an emphasis on customer care and a culture of good corporate governance. NAME: RICHARD GAURAB SARKAR ROLL.Investment Manager : Reliance Capital Asset Management Limited.
Reliance Natural Resources Fund (Open-Ended Equity): 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. 2. The Fund aims to maximize long-term total return by investing in equity and equity-related securities which have their area of primary activity in India. An investment fund that approach stock selection process based on quantitative analysis. Such funds have comparatively high risks. Transportation) and infrastructure related sectors and which are incorporated or have their area of primary activity. Investment Strategy: The investment focus would be guided by the growth potential and other economic factors of the country.term. in India and the secondary objective is to generate consistent returns by investing in debt and money market securities. 3. EQUITY/GROWTH SCHEMES: The aim of growth funds is to provide capital appreciation over the medium to long. 1. Reliance Quant Plus Fund/Reliance Index Fund (Open-Ended Equity): The investment objective of the Scheme is to generate capital appreciation through investment in equity and equity related instruments. development. Construction.SCHEMES A). production. Telecommunication. NAME: RICHARD GAURAB SARKAR ROLL. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Such schemes normally invest a major part of their corpus in equities. Reliance Infrastructure Fund(Open-Ended Equity): The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in infrastructure (Airports. or distribution of natural resources and the secondary objective is to generate consistent returns by investing in debt and money market securities.NO:13 Page 43 . The Scheme will seek to generate capital appreciation by investing in an active portfolio of stocks selected from S & P CNX Nifty on the basis of a mathematical model.
Reliance Equity Linked Saving Fund (A 10 Year Close-Ended Equity ): The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equities along with income tax benefit. 6.NO:13 Page 44 . and other basic commodities. Reliance Equity Fund (Open-Ended Diversified Equity) : 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. for example. Reliance Equity Advantage Fund (Open-Ended Diversified Equity): 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.Natural resources may include. The scheme may invest in equity shares in foreign companies and instruments convertible into equity shares of domestic or foreign companies and in derivatives as may be permissible under the guidelines issued by SEBI and RBI. NAME: RICHARD GAURAB SARKAR ROLL. energy sources. 5. 4. forest products. precious and other metals. food and agriculture.
Reliance Vision Fund (Open-Ended Equity) : 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. 11. Reliance Growth Fund (Open-Ended Equity): The primary investment objective of the Scheme is to achieve long term growth of capital by investment in equity and equity related securities through a research based investment approach.Reliance Equity Opportunities Fund (Open-Ended Diversified Equity): The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity securities & equity related securities and the secondary objective is to generate consistent returns by investing in debt and money market securities.Reliance NRI Equity Fund (Open-Ended Diversified Equity): 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. 9. The dividend distribution tax (payable by the AMC) for equity schemes is also NIL 8. 1961. Reliance Tax Saver (ELSS) Fund (Open-Ended Equity): 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. Tax Benefits: Investment upto Rs 1 lakh by the eligible investor in this fund would enable you to avail the benefits under Section 80C (2) of the Income-tax Act. Dividends received will be absolutely TAX FREE.NO:13 Page 45 . 10. NAME: RICHARD GAURAB SARKAR ROLL.7.
If the interest rates fall. NAME: RICHARD GAURAB SARKAR ROLL. It aims to maximize returns by investing 70-100% in Equities focusing in small and mid cap companies. These funds are not affected because of fluctuations in equity markets.Reliance Regular Savings Fund (Open-Ended Equity): Reliance Regular Savings Fund provides you the choice of investing in Debt. For the first time in India.NO:13 Page 46 . corporate debentures. Equity or Hybrid options with a pertinent investment objective and pattern for each option. 13. B).12.Reliance Long Term Equity Fund (Open-Ended Diversified Equity): 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. the smart new way to invest. the fund is truly.100/-every month in the Reliance Regular Savings Fund. Government securities and money market instruments. 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. The NAVs of such funds are affected because of change in interest rates in the country. Such schemes generally invest in fixed income securities such as bonds. It is a 36-month close ended diversified equity fund with an automatic conversion into an open ended scheme on expiry of 36-months from the date of allotment. With a choice of three investment options. DEBT/INCOME SCHEMES: The aim of income funds is to provide regular and steady income to investors. Invest as little as Rs. However. Such funds are less risky compared to equity schemes. your mutual fund offers instant cash withdrawal facility on your investment at any VISA-enabled ATM near you. However. long term investors may not bother about these fluctuations.
NAME: RICHARD GAURAB SARKAR ROLL. Accordingly. Monthly Income is not assured & is subject to the availability of distributable surplus) The Primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unit holders and the secondary objective is growth of capital. investments shall predominantly be made in Debt and Money Market Instruments. Reliance Liquid Fund : (Open-ended Liquid Scheme) The primary investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. This income may be complemented by capital appreciation of the portfolio.1. 6. Reliance Income Fund : (An Open-ended Income Scheme) The primary objective of the scheme is to generate optimal returns consistent with moderate levels of risk. 4.NO:13 Page 47 . Reliance Monthly Income Plan : (An Open Ended Fund. 2. Reliance Medium Term Fund : (An Open End Income Scheme with no assured returns) The primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unit holders and the secondary objective is growth of capital 5. Accordingly. Reliance Gilt Securities Fund . 3. Reliance Short Term Fund : (An Open End Income Scheme) The primary investment objective of the scheme is to generate stable returns for investors with a short investment horizon by investing in Fixed Income Securities of short term maturity. investments shall predominantly be made in Debt & Money market Instruments.Short Term Gilt Plan & Long Term Gilt Plan : (Open-ended Government Securities Scheme) The primary objective of the Scheme is to generate optimal credit risk-free returns by investing in a portfolio of securities issued and guaranteed by the central Government and State Government.
NO:13 Page 48 . 9.Reliance Liquid Plus Fund: (An Open-ended Income Scheme) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities. The scheme shall also invest in fixed rate debt Securities (including fixed rate securitised debt. 10. investments shall predominantly be made in Debt and Money Market Instruments. Money Market Instruments and Floating Rate Debt Instruments swapped for fixed returns. Accordingly.Reliance Interval Fund : (A Debt Oriented Interval Scheme) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio 11.ended Liquid Scheme) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. 12. Reliance Floating Rate Fund : (An Open End Liquid Scheme) The primary objective of the scheme is to generate regular income through investment in a portfolio comprising substantially of Floating Rate Debt Securities (including floating rate securitised debt and Money Market Instruments and Fixed Rate Debt Instruments swapped for floating rate returns). NAME: RICHARD GAURAB SARKAR ROLL. investments shall predominantly be made in debt Instruments. Accordingly. Reliance Liquidity Fund : (An Open .Reliance Fixed Horizon Fund–I: (A closed ended Scheme) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio. This income may be complimented by capital appreciation of the portfolio.7. 8. Reliance NRI Income Fund : (An Open-ended Income scheme) The primary investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risks.
15. NAME: RICHARD GAURAB SARKAR ROLL.Reliance Fixed Horizon Fund –II: (A closed ended Scheme. 17.) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio.) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio.Reliance Fixed Horizon Fund .) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio.IV: (A Close-ended Income Scheme.) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio.13.NO:13 Page 49 . 14.Reliance Fixed Horizon Fund -Plan C : (A closed ended Scheme. 16.Reliance Fixed Horizon Fund –III: (A Close-ended Income Scheme.Reliance Fixed Tenor Fund : (A Close-ended Scheme) The primary investment objective of the Plan is to seek to generate regular returns and growth of capital by investing in a diversified portfolio.
The returns in these funds are dependent on the performance of the respective sectors/industries.) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of: Central and State Government securities and Other fixed income/ debt securities normally maturing in line with the time profile of the scheme with the objective of limiting interest rate volatility 19.Reliance Fixed Horizon Fund . Pharmaceuticals.g.) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of: Central and State Government securities and Other fixed income/ debt securities normally maturing in line with the time profile of the series with the objective of limiting interest rate volatility.Reliance Fixed Horizon Fund – VII : (A Close-ended Income Scheme.NO:13 Page 50 . Software. they are more risky compared to diversified funds. FMCG. C). While these funds may give higher returns. SECTOR SPECIFIC SCHEMES: These are the funds/schemes which invest in the securities of specified sectors or industries e. etc. NAME: RICHARD GAURAB SARKAR ROLL. Petroleum stocks.18.V: (A Close-ended Income Scheme.Reliance Fixed Horizon Fund – VI : (A Close-ended Income Scheme) The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of: Central and State Government securities and Other fixed income/ debt securities normally maturing in line with the time profile of the series with the objective of limiting interest rate volatility 20.
Reliance Pharma Fund : Reliance Pharma Fund is an Open-ended Pharma Sector Scheme. D). The primary investment objective of the Scheme is to seek to generate consistent returns by actively investing in equity / equity related or fixed income securities of Power and other associated companies. The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of Pharma and other associated companies. 4. Reliance Diversified Power Sector Fund : Reliance Diversified Power Sector Scheme is an Open-ended Power Sector Scheme. Reliance Banking Fund : Reliance Mutual Fund has an Open-Ended Banking Sector Scheme which has the primary investment objective to generate continuous returns by actively investing in equity / equity related or fixed income securities of banks.1. RELIANCE GOLD EXCHANGE TRADED FUND: (An open-ended Gold Exchange Traded Fund) The investment objective is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical Gold (and Gold related securities as permitted by Regulators from time to time).NO:13 Page 51 . The the primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of media & entertainment and other associated companies. 3. 2. NAME: RICHARD GAURAB SARKAR ROLL. the performance of the scheme may differ from that of the domestic prices of Gold due to expenses and or other related factors. Reliance Media & Entertainment Fund : Reliance Media & Entertainment Fund is an Open-ended Media & Entertainment sector scheme. However.
Besides running domestic MF Schemes UTI AMC is also a registered portfolio manager under the SEBI (Portfolio Managers) Regulations. The real vibrancy and competition in the MF industry came with the setting up of the Regulator SEBI and its laying down the MF Regulations in 1993. In order to distance Government from running a mutual fund the ownership was transferred to four institutions. LIC. UTI lost its market dominance rapidly and by end of 2005. This was further compounded by two factors. including the Best Infra Fund globally from Lipper.UNIT TRUST OF INDIA MUTUAL FUND 'Unit Trust of India was created by the UTI Act passed by the Parliament in 1963. For more than two decades it remained the sole vehicle for investment in the capital market by the Indian citizens. each owning 25%.NO:13 Page 52 . UTI has been able to benchmark its employee compensation to the best in the market. namely SBI.when the new share-holders actually paid the consideration money to Government its market share had come down to close to 10%.UTI maintained its pre-eminent place till 2001. Some of the funds have won famous awards. its flagship and largest scheme US 64 was sold and re-purchased not at intrinsic NAV but at artificial price and its Assured Return Schemes had promised returns as high as 18% over a period going up to two decades. when a massive decline in the market indices and negative investor sentiments after Ketan Parekh scam created doubts about the capacity of UTI to meet its obligations to the investors. This company runs two successful funds with large international investors being active participants. Once again UTI has emerged as a serious player in the industry. Systematic study of its problems role and functions was carried out with the help of a reputed international consultant.1980s public sector banks were allowed to open mutual funds. namely. UTI has also launched a Private Equity Infrastructure Fund along with HSH Nord Bank of Germany and Shinsei Bank of Japan NAME: RICHARD GAURAB SARKAR ROLL. BOB and PNB. A new board was constituted and a new management inducted. In mid.
Limited. restructured.NO:13 Page 53 . All the branches.Vision: To be the most Preferred Mutual Fund. admired by all stakeholders. efficient and transparent entity. Mission: • The most trusted brand. UFCs and registrar offices are connected on a robust IT network to ensure cost-effective quick and efficient service. Ltd Sponsor: State Bank of India Bank of Baroda Punjab National Bank Life Insurance Corporation of India Trustee: UTI Trustee Co. Reliability UTIMF has consistently reset and upgraded transparency standards. fully compliant with SEBI regulations. All these have evolved UTIMF to position as a dynamic. responsive. • The largest and most efficient money manager with global presence • The best in class customer service provider • The most preferred employer • The most innovative and best wealth creator • A socially responsible organisation known for best corporate governance Assets Under Management: UTI Asset Management Co. NAME: RICHARD GAURAB SARKAR ROLL.
companies principally engaged in the design. c) Companies related to storage of energy. UTI Banking Sector Fund (Open Ended Fund): An open-ended equity fund with the objective to provide capital appreciation through investments in the stocks of the companies/institutions engaged in the banking and financial services activities. The fund will invest in the stocks of the companies which form part of Infrastructure Industries NAME: RICHARD GAURAB SARKAR ROLL. At least 90% of the funds will be invested in equity and equity related instruments. 3. UTI Transportation And Logistics Fund (Auto Sector Fund) (Open Ended Fund): Investment Objective is “capital appreciation” through investments in stocks of the companies engaged in the transportation and logistics sector. or sale of transportation equipment and companies in the logistics sector. distribution. engineering etc. Upto 10% of the funds will be invested in cash/money market instruments. oil and gas. UTI Infrastructure Fund (Open Ended Fund): An open-ended equity fund with the objective to provide Capital appreciation through investing in the stocks of the companies engaged in the sectors like Metals. power. manufacture. d) Companies manufacturing energy development equipment related ( like petro and power ) e) Consultancy & Finance Companies 2.SCHEMES A). EQUITY FUND 1. 4. chemicals. Building materials. UTI Energy Fund (Open Ended Fund): Investment will be made in stocks of those companies engaged in the following are: a) Petro sector . Atleast 80% of the funds will be invested in equity and equity related instruments of the companies principally engaged in providing transportation services.NO:13 Page 54 .oil and gas products & processing b) All types of Power generation companies.
hotels. education. UTI Growth Sector Fund – Software (Open Ended Fund): An open-ended fund which invests exclusively in the equities of the Software Sector companies.5. NAME: RICHARD GAURAB SARKAR ROLL.NO:13 Page 55 . This fund is one of the growth sector funds aiming to invest in companies engaged in business of manufacturing and marketing of bulk drug. UTI Growth Sector Fund – Pharma (Open Ended Fund): An open-ended fund which exclusively invests in the equities of the Pharma & Healthcare sector companies. etc. It aims at enabling members to avail tax rebate under Section 80C of the IT Act and provide them with the benefits of growth. 6. entertainment. UTI Master Equity Plan Unit Scheme (Close Ended Fund): The scheme primarily aims at securing for the investors capital appreciation by investing the funds of the scheme in equity shares of companies with good growth prospects. insurance. travel. UTI Growth Sector Fund – Services (Open Ended Fund): An open-ended fund which invests in the equities of the Services Sector companies of the country. UTI Equity Tax Savings Plan (Open Ended Fund): An open-ended equity fund investing a minimum of 80% in equity and equity related instruments. finance. 8. telecom. formulations and healthcare products and services. training. One of the growth sectors funds aiming to invest in equity shares of companies belonging to information technology sector to provide returns to investors through capital growth as well as through regular income distribution 9. 7. One of the growth sector funds aiming to provide growth of capital over a period of time as well as to make income distribution by investing the funds in stocks of companies engaged in service sector such as banking.
12. convertible debentures. 11. 14.NO:13 Page 56 . 15. The fund aims to provide unit holders capital appreciation & income distribution. UTI Master Value Fund (Open Ended Fund): An open-ended equity fund investing in stocks which are currently undervalued to their future earning potential and carry medium risk profile to provide 'Capital Appreciation'. derivatives in India and also in overseas markets. convertible & non-convertible debentures and other capital and money market instruments with a provision to invest upto 50% of its corpus in PSU's equities and equity related products. UTI Mastershare Unit Scheme (Open Ended Fund): An Open-end equity fund aiming to provide benefit of capital appreciation and income distribution through investment in equity. UTI Master Plus Unit Scheme (Open Ended Fund): An open-ended equity fund with an objective of long-term capital appreciation through investments in equities and equity related instruments. UTI Equity Fund (Open Ended Fund): UTI Equity Fund is open-ended equity scheme with an objective of investing at least 80% of its funds in equity and equity related instrument with medium to high risk profile and upto 20% in debt and money market instruments with low to medium risk profile.10. UTI Mid Cap Fund (Open Ended Fund): An open-ended equity fund with the objective to provide 'Capital appreciation' by investing primarily in mid cap stocks. UTI Top 100 Fund (Open Ended Fund): An open-ended equity fund for investment in equity shares. NAME: RICHARD GAURAB SARKAR ROLL. 13.
rational investors' behaviour by focussing on stocks that are currently undervalued because of emotional & behavioural patterns present in the stock market. UTI Leadership Equity Fund (Open Ended Fund): This scheme seeks to generate capital appreciation and / or income distribution by investing the funds in stocks that are "Leaders" in their respective industries / sectors / sub-sector. UTI Opportunities Fund (Open Ended Fund): This scheme seeks to generate capital appreciation and/or income distribution by investing the funds of the scheme in equity shares and equity-related instruments. UTI Contra Fund (Open Ended Fund): An open ended equity scheme with the objective to provide long term capital appreciation/dividend distribution through investments in listed equities & equity related instruments. The fund offers an opportunity to benefit from the impact of non. 19. UTI MNC Fund (Open Ended Fund): An open-ended equity fund with the objective to invest predominantly in the equity shares of multinational companies in diverse sectors such as FMCG. Engineering etc. 17. The focus of the scheme is to capitalise on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change. UTI Dividend Yield Fund (Open Ended Fund): It aims to provide medium to long term capital gains and/or dividend distribution by investing predominantly in equity and equity related instruments which offer high dividend yield. 20. 18. Pharmaceutical.16.NO:13 Page 57 . NAME: RICHARD GAURAB SARKAR ROLL.
24.NO:13 Page 58 . Indian Lifestyle and rising consumption pattern. NAME: RICHARD GAURAB SARKAR ROLL. there can be no assurance that the investment objective of the scheme will be achieved. derivatives and the balance portion in debt securities. The fund strives to minimise performance difference with the sensex by keeping the tracking error to the minimum. UTI SPREAD Fund (Open Ended Fund): The investment objective of the scheme is to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price differences between the cash and derivative market by investing predominantly in equity & equity related securities. A). However. UTI Wealth Builder Fund (Close Ended Fund): The objective of the scheme is to achieve long term capital appreciation by investing predominantly in a diversified portfolio of equity and equity related instruments. UTI Long Term Advantage Fund .21. INDEX FUND: 1. UTI Master Index Fund (Open Ended Fund): UTI MIF is an open-ended passive fund with the primary investment objective to invest in securities of companies comprising the BSE sensex in the same weightage as these companies have in BSE sensex. there can be no assurance that the investment objective of the scheme will be realised. UTI India Lifestyle Fund (Close Ended Fund): The investment objective of the scheme is to provide long term Capital appreciation and / or income distribution from a diversified portfolio of equity and equity related instruments of companies that are expected to benefit from changing Indian demographics.Series I (Close Ended Fund): The investment objective of the scheme is to provide medium to long term capital appreciation along with income tax benefit. 23. 22. However.
ASSETS FUND UTI VIS-ILP is an open ended scheme with the objective of providing the investors with UTI Variable Investment Scheme: a product that would enable them to diversify their risks through a suitable allocation between debt and equity asset classes and thereby generate superior risk-adjusted returns through a dynamic asset allocation process. D). 2. before expenses. before expenses. closely track the performance and yield of Gold. UTI Gold Exchange Traded Fund (Open Ended Fund): To endeavour to provide returns that. Maximum 100% Equity : Minimum 0%. BALANCED FUND: 1. UTI Balanced Fund (Open Ended Fund): An open-ended balanced fund investing between 40% to 75% in equity /equity related securities and the balance in debt (fixed income securities) with a view to generate regular income together with capital appreciation. NAME: RICHARD GAURAB SARKAR ROLL. UTI Mahila Unit Scheme (Open Ended Fund): To invest in a portfolio of equity/equity related securities and debt and money market instruments with a view to generate reasonable income with moderate capital appreciation. However the performance of the scheme may differ from that of the underlying asset due to racking error. There can be no assurance or guarantee that the investment objective of UTI-Gold ETF will be achieved.2. C).NO:13 Page 59 . Maximum 30%. The asset allocation will be Debt : Minimum 70%. 3. closely correspond to the performance and yield of the basket of securities underlying the S & P CNX Nifty Index. UTI Sunder (Open Ended Fund): To provide investment returns that.
4. Religious and Educational Trusts as well as Registered societies with the goal of providing regular income. UTI Unit Link Insurance Plan (Open Ended Fund): To provide return through growth in the NAV or through dividend distribution and reinvestment thereof 5. UTI Bond Fund (Open Ended Fund): NAME: RICHARD GAURAB SARKAR ROLL. a means to receive scholarship to meet the cost of higher education / or help them in setting up a profession. after they attain the age of 18 years. Investment can be made in the name of the children upto the age of 15 years so as to provide them. INCOME FUND (DEBT FUND) Open-end 100% pure debt fund. 6. UTI Charitable. in the form of periodical cash flow upto the extent of repurchase value of their holding through a systematic withdrawal plan. UTI CCP (Children Career Plan) Advantage Fund (Open Ended Fund): An open ended balanced fund with 70-100% investment in Equity.NO:13 Page 60 . the cost of other social obligations. The scheme is catering to the Investment needs of Charitable. Religious Trust And Registered Society (Open Ended Fund): Open-ended debt oriented Income scheme with an objective of investing not more than 30% of the funds in equity related instruments and the balance in debt and money market instruments with low to medium risk profile. practice or business or enabling them to set up a home or finance.3. E). which invests in rated corporate debt papers and government securities with relatively low risk and easy liquidity. UTI Retirement Benefit Pension Fund (Open Ended Fund): The objective of the scheme is to provide pension to investors particularly self-employed persons after they attain the age of 58 years. 1.
treasury bills and repos of varying maturities with a view to generatie credit risk free return. UTI Gilt Advantage Fund STP (Open Ended Fund): To generate credit risk-free return through investment in sovereign securities issued the Central and / or a State Government. UTI Treasury Advantage Fund (Open Ended Fund): It aims to generate attractive returns consistent with capital preservation and liquidity NAME: RICHARD GAURAB SARKAR ROLL. treasury bills and repos of varying maturities with a view to generate credit risk free return with a stated objective of maintaining the average maturity of the portfolio at less than 3 years. 5. UTI Gilt Advantage Fund LTP(Open Ended Fund): To generate credit risk-free return through investments in sovereign securities issued the Central and / or a State Government. UTI G-SEC STP (Open Ended Fund): An open-end Gilt-Fund with the objective to invest only in Central Government securities including call money. UTI Floating Rate Fund STP (Open Ended Fund): To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments and fixed rate debt / money market instruments. 6.2. 4. 7. 3. UTI G-Sec-Investment Plan (Open Ended Fund): An open-end Gilt-Fund with the objective to Invests only in Central government securities including call money. While selecting the maturity profile of the investment in government securities the need for maximisation of the returns and meeting of the liquidity requirements of the scheme is kept in view.NO:13 Page 61 .
8.UTI Short Term Income Fund (Open Ended Fund): The Scheme seeks to generate steady & reasonable income with low risk & high level of liquidity from a portfolio of money market securities & high quality debt. UTI Advantage Plan (Open Ended Fund): Endeavours to make periodic income distribution to unitholders through investments in fixed income securities and equity & equity related instruments. UTI Monthly Income Scheme (Open Ended Fund): This is an open-end debt oriented scheme with no assured returns. if any. 1. periodically. NAME: RICHARD GAURAB SARKAR ROLL.UTI Capital Protection Oriented Scheme (Open Ended Fund): The investment objective of the scheme is to endeavour to protect the capital by investing in high quality fixed income securities as the primary objective and generate capital appreciation by investing in equity and equity related instruments as secondary objective. UTI Money Market Fund (Open Ended Fund): An open-ended pure debt liquid plan seeking to provide highest possible current income by investing in a diversified portfolio of short-term money market securities. 9. 10. The scheme aims at distributing income.NO:13 Page 62 . UTI Liquid Cash Plan (Open Ended Fund): 2. LIQUID FUND (DEBT FUND): The scheme seeks to generate steady & reasonable income with low risk & high level of liquidity from a portfolio of money market securities & high quality debt. 11. F).
TelecomServices. Finance. Investment.RELIANCE MUTUAL FUND When Started? Established in 1995. number one company in India. Metals etc Main Funds. UTI Opportunity Fund. Hotels. Rs. Industrial Capital Goods. Registered with SEBI as trust under Indian Trusts Act. Balanced Fund.1000 Equity Financial Service: 16-22% Energy: 12-18% Consumer goods: 08-14% How they came into business Minimum investment. 500 Equity Bank: 8-15% Software: 8-19% Petroleum Products: 4-8% Pharmaceuticals: 6-10% invest in 12-20 sectors which include: Auto . invest in 7-15 sectors which include: IT. Sector Specific Fund and Gold Exchange Traded Fund. Derivatives. Reliance Equity Opportunity Fund. Type of fund offered Numbers of schemes offered Distribution Equity Fund. Reliance outlets and branches. Liquid) 107 schemes. UTI Bank Pan card Bank Recruitment ULIP Is any other venture? NAME: RICHARD GAURAB SARKAR ROLL. Tie-up with Post offices branches. UTI outlets and branches. Auto Ancillaries.NO:13 Page 63 . Retailing. Debt Fund. Media & Entertainment. Currently. Automobile. Reliance Regular Saving Funds Equity Fund. Telecom. 106 schemes Online and internet based distribution. First mutual fund company in India By the UTI Act passed by the Parliament in 1963. Life Insurance General Insurance Broking & Distribution Consumer Finance Private Equity Assets Reconstruction. 1882 Rs. Transportation etc UTI Dividend yield Fund. Reliance Diversified Fund. Construction Project. Cement Products. Index Fund. UTI MUTUAL FUND Established in 1964. Power. Textile. Asset Fund. Debt Fund (Income.
Dividend Reliance Growth Fund Institutional .Institutional .Weekly Dividend UTI Money Market Fund Institutional .83 24.98 27.Weekly Dividend UTI .Dividend PLAN Dividend TYPES Open Ended % RETURNS ( ) 168.20 167.52 37.80 Dividend Open Ended Bonus Open Ended Dividend Open Ended Growth Dividend Open Ended Open Ended Dividend Open Ended Dividend Open Ended Dividend Dividend Open Ended Open Ended NAME: RICHARD GAURAB SARKAR ROLL.Dividend Yield Fund Income UTI .Dividend Reliance Banking Fund Institutional – Dividend Reliance Banking Fund .Bonus UTI .Institutional .NO:13 Page 64 .FLOATING RATE STP Institutional .Dividend Reliance Equity Opportunities Fund .07 26.Treasury Advantage Fund Institutional .24 20.92 166.67 23.Sunder Reliance Diversified Power Sector Fund .83 26.CHAPTER: 5 COMPARITIVE ANALYSIS OF THE PERFORMANCE OF TOP FIVE MUTUAL FUNDS OF RELIANCE LTD AND UTI FOR THE LAST 5 YRS SCHEME UTI .
SEBI allowing the MF's to launch commodity mutual funds.4%. with over US$1trillion assets under management worldwide. There is a big scope for expansion. US based. Number of foreign AMC's are in the queue to enter the Indian markets like Fidelity Investments. Our saving rate is over 23%. Emphasis on better corporate governance. Mutual fund can penetrate rurals like the Indian insurance industry with simple and limited products. Trying to curb the late trading practices.Chapter: 6 FUTURE PROSPECT OF MUTUAL FUNDS IN INDIA Financial experts believe that the future of Mutual Funds in India will be very bright. Looking at the past developments and combining it with the current trends it can be concluded that the future of Mutual Funds in India has lot of positive things to offer to its investors. Introduction of Financial Planners who can provide need based advice. Soon they will find scope in the growing cities. It has been estimated that by March-end of 2010. NAME: RICHARD GAURAB SARKAR ROLL. Only channelizing these savings in mutual funds sector is required. Today most of the mutual funds are concentrating on the 'A' class cities.NO:13 Page 65 . In the coming 10 years the annual composite growth rate is expected to go up by 13. 'B' and 'C' class cities are growing rapidly. 100% growth in the last 6 years. the mutual fund industry of India will reach Rs 40.000 crore. highest in the world. We have approximately 29 mutual funds which is much less than US having more than 800. taking into account the total assets of the Indian commercial banks.90.
As financial markets become more sophisticated and complex. The fund industry has already overtaken the banking industry. India's largest mutual fund.NO:13 Page 66 . Risk takers for getting capital appreciation should invest in growth. equity schemes. The stock market has been rising for over three years now. Also. still controls nearly 80 per cent of the market. This in turn has not only protected the money invested in funds but has also to helped grow these investments. investors need a financial intermediary who provides the required knowledge and professional expertise on successful investing. As the investor always try to maximize the returns and minimize the risk. NAME: RICHARD GAURAB SARKAR ROLL. Mutual fund satisfies these requirements by providing attractive returns with affordable risks. With the emergence of tough competition in this sector mutual funds are launching a variety of schemes which caters to the requirement of the particular class of investors. Investors who are in need of regular income should invest in income plans. UTI. Reliance India mutual funds provide major benefits to a common man who wants to make his life better than previous. the mutual fund industry as a whole gets less than 2 per cent of household savings against the 46 per cent that go into bank deposits.Chapter: 7 CONCLUSION Mutual Funds now represent perhaps most appropriate investment opportunity for most investors. more funds being under mutual fund management than deposited with banks. This has also instilled greater confidence among fund investors who are investing more into the market through the MF route than ever before.
google.com NAME: RICHARD GAURAB SARKAR ROLL.utimf.altavista.NO:13 Page 67 .com www.yahoo.com SEARCH ENGINE: www.com www.Chapter: 8 BIBLIOGRAPHY REFERENCE BOOK: FINANCIAL MARKET AND SERVICES -Gordon and Natarajan WEBSITE: www.amfiindia.reliancemutual.com www.com www.