Investemt on Mutual Fund vs Equitites

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    CERTIFICATE OF COMPLETION

    This is certify that the Final Project report entitled “Investment avenues: a

    comparative study of mutual funds v/s equities” submitted Dissertation report

    of the requirement for the degree of MBA, affiliated to the

    !is a "or# carried out by !!, $oll

     %o! under my super&ision and guidance!

      Project Guide'

     

    (

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    DECLARATION

    ), the undersigned, hereby declare that the dissertation report submitted to my

    college i!e! in partial fulfillment for the Degree

    of Master of Business administration on “)n&estment a&enues' a comparati&e

    study of mutual funds &*s equities+, is a result of my o"n "or# under continuous

    guidance and #ind cooperation of our college faculty member, !!

    ) ha&e not submitted this training report to any other uni&ersity for the a"ard of 

    any degree!

    ………………………….

    -

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    ACKNOWLEDGEMENT

    ) ha&e been e.tremely fortunate that ) ha&e had the opportunity of "or#ing under 

    ………………………………………………….. ) "ould especially li#e to than# 

    him for his guidance and support in completing this report and gi&ing his &aluable

    insights and gi&ing me suggestions regarding the same, "hich has helped my

     project to shape up the "ay it, is no"! )t "as only because of his helpful nature

    that ) "as gi&en absolute freedom to e.plore ne" directions in this project!

    ) "ould ta#e this opportunity to than# , Mr . ……………………………………..

    for gi&ing me the opportunity to pursue my summer internship at a "orld class

    organi/ation li#e Reliance, and for assigning me a good project, under 

    responsible persons! ) "ould be committing a gra&e injustice if ) did not mention

    the help e.tended to me by the 0perations Team 12pecially

    Mr!! and the other members of this "onderful $eliance

    Mutual Fund 3handigarh Family!

    Finally ) "ould li#e to than# all my friends "ho ha&e helped me for the

    completion of this report!

    4

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    EXECUTIVE SUMMARY

    Dissertation "or# is a part of our curriculum that gi&es us the #no"ledge about

    the practical "or# in any organi/ation and ma#es are stand in an organi/ation!

    This also helps to understand 5 correlate the theoretical concepts better "hich

    remains unco&ered in the classrooms! ) ha&e prepared this report in the process of 

    my postgraduate degree in business management!

    The topic that has been ta#en for the project is “Investment avenues: a

    comparative study of mutual funds v/s equities”.

      Any #ind of learning is incomplete till it is practically applied in the concerned

    field! 0nly then a person understand and get hold of e&en the minutest details of 

    "hat he*she has learnt in his stay at the institute doing his*her MBA! 2o, to

     practically apply "hat ) had gained in the past t"o semesters in the MBA

     programme, ) under"ent t"o months summer training at $eliance Mutual Fund,

    3handigarh! )t has been a "onderful learning e.perience, "hich has gi&en me an

    insight into "hat goes on in the corporate "orld and this stay at the $eliance

    office has helped me learn the intricate details of the corporate culture and "hat

    life has in store for most of us doing our MBA! ) ha&e compiled this report to

    share all my e.periences "ith all of you! )n this report, ) ha&e e.plained the

     project, "hich ) undertoo# "ith $eliance Mutual! 

    6

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    TABLE OF CONTENTS

    S No. Topic Page No.

    C!ap"e# I$%&'"#( P#o)i*e

    1.1 Introduction to Mutual Funds 2-20

    1.2 Latest Developments 20-22

    + C!ap"e# + Co,pa$( P#o)i*e

    2.1 Reliance Capital sset Mana!ement Ltd. 2"-2#

    2.2 Reliance Mutual Funds 2#-$%

    - C!ap"e# - Re'ea#c! Me"!o%o*og(

    $.1 Researc& Pro'lem $(

    $.2 Researc& )'jectives $(

    $.$ *ources o+ Data $(

    $." ,ools pplied $(-"0

    C!ap"e# A$a*('i' "2-(2

    / C!ap"e# / Co$c*&'io$ ("-(%

    0 C!ap"e# 0 S&gge'"io$' a$% Reco,,e$%a"io$' ((

    Bi1*iog#ap!( (

    A$$e2e Li'" o) Ta1*e' (

    Li'" o) C!a#"' 0

    7

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    8

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    INVES!EN "VEN#ES: " $%!&"R"IVE

    S#'( %) !##"* )#N'S V/S E+#IIES

    Conducted at Reliance capital (AMC), Chandigarh.

    *u'mitted to /,/ in t&e partial +ul+illment o+ t&e reuirement +or 

    de!ree

    O) 

    Ma'"e#' o) B&'i$e'' A%,i$i'"#a"io$

    3Specia*i4a"io$ 5 Fi$a$ce6

    B(7 8

    999999999..

    999999999

    999999999999999999999999999.

    LIST OF TABLES

    9

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    S.NO TOPIC PAGE NO.

    1 P)R,F)LI) DIR*IFIC,I)3 "$ 4 ""

    2 5, "(

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    *9)R, ,RM CPI,L GI3 %%10 ,;* )3 7/I,8 , ,IM )F

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    ;

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    INDUSTRYPROFILE

    (

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    !##"* )#N': "N INR%'#$I%N

    Mutual funds are financial intermediaries, "hich collect the sa&ings of in&estors

    and in&est them in a large and "elldi&ersified portfolio of securities such as

    money mar#et instruments, corporate and go&ernment bonds and equity shares of 

     joint stoc# companies! A mutual fund is a pool of common funds in&ested by

    different in&estors, "ho ha&e no contact "ith each other! Mutual funds are

    concei&ed as institutions for pro&iding small in&estors "ith a&enues of 

    in&estments in the capital mar#et! 2ince small in&estors generally do not ha&e

    adequate time, #no"ledge, e.perience and resources for directly accessing the

    capital mar#et, they ha&e to rely on an intermediary, "hich underta#es informed

    in&estment decisions and pro&ides consequential benefits of professional

    e.pertise! The raison d=>tre of mutual funds is their ability to bring do"n the

    transaction costs! The ad&antages for the in&estors are reduction in ris#, e.pert

     professional management, di&ersified portfolios, liquidity of in&estment and ta.

     benefits! By pooling their assets through mutual funds, in&estors achie&e

    economies of scale! The interests of the in&estors are protected by the 2?B),

    "hich acts as a "atchdog! Mutual funds are go&erned by the 2?B) 1Mutual

    Funds@ $egulations, (;;4!

    ((

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    (-

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    !##"* )#N' $%NSI#ENS

    All mutual funds comprise four constituents 2ponsors, Trustees, Asset

    Management 3ompany 1AM3@ and 3ustodians!

    Sponsors: The sponsors initiate the idea to set up a mutual fund! )t could be a

    registered company, scheduled ban# or financial institution! A sponsor has to

    satisfy certain conditions, such as capital, record 1at least fi&e years= operation in

    financial ser&ices@, default free dealings and general reputation of fairness! The

    sponsors appoint the Trustee, AM3 and 3ustodian! 0nce the AM3 is formed, the

    sponsor is just a sta#eholder!

    rust/ oard of rustees: Trustees hold a fiduciary responsibility to"ards

    unit holders by protecting their interests! Trustees float and mar#et schemes, and

    secure necessary appro&als! They chec# if the AM3=s in&estments are "ithin

    "elldefined limits, "hether the fund=s assets are protected, and also ensure that

    unit holders get their due returns! They also re&ie" any due diligence by the

    AM3! For major decisions concerning the fund, they ha&e to ta#e the unit holders

    consent! They submit reports e&ery si. months to 2?B) in&estors get an annual

    report! Trustees are paid annually out of the fund=s assets

    "ee#ly net asset &alue!

    )und !ana-ers/ "!$:  They are the ones "ho manage money of the

    in&estors! An AM3 ta#es decisions, compensates in&estors through di&idends,

    maintains proper accounting and information for pricing of units, calculates the

     %AC, and pro&ides information on listed schemes! )t also e.ercises due diligence

    (4

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    on in&estments, and submits quarterly reports to the trustees! A fund=s AM3 can

    neither act for any other fund nor underta#e any business other than asset

    management! )ts net "orth should not fall belo" $s! (< crore! And, its fee should

    not e.ceed (!-7 percent if collections are belo" $s! (

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    SPONSOR REGISTRAR

    SETS UPMAINTIAN RECORDS OF AND SERVIC

    APPOINTS

    TRUSTEE COMPANY 

    ACT AS TRUSTEE TO THE UNITHOLDERS OF

    ASSET MANAFEMENT COMPANY 

    SUBSCRIBE THE UNITS OF

    MANGES THE INVESTMENT OFSAFE KEEPS THE ASSETS OF CUSTODIAN

    INVESTORMUTUAL FUND (AS A TRUST)

    !##"* )#N': RE*"I%NSI& "!%NSE ENIIES

    INV%*VE'

     

    (7

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    0%#RNE( S% )"R

    The mutual fund industry in )ndia started in (;84 "ith the formation of nit Trust

    of )ndia, at the initiati&e of the Eo&ernment of )ndia and $eser&e Ban# the! The

    history of mutual funds in )ndia can be broadly di&ided into four distinct phases

    )irst &1ase 2 3456789

    nit Trust of )ndia 1T)@ "as established on (;84 by an Act of Parliament! )t "as

    set up by the $eser&e Ban# of )ndia and functioned under the $egulatory and

    administrati&e control of the $eser&e Ban# of )ndia! )n (;9: T) "as delin#ed

    from the $B) and the )ndustrial De&elopment Ban# of )ndia 1)DB)@ too# o&er the

    regulatory and administrati&e control in place of $B)! The first scheme launched

     by T) "as nit 2cheme (;86! At the end of (;:: T) had $s!8,9

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    1ird &1ase 2 3447>?? ;Entry of &rivate Sector )unds= 

    Hith the entry of pri&ate sector funds in (;;4, a ne" era started in the )ndian

    mutual fund industry, gi&ing the )ndian in&estors a "ider choice of fund families!

    Also, (;;4 "as the year in "hich the first Mutual Fund $egulations came into

     being, under "hich all mutual funds, e.cept T) "ere to be registered and

    go&erned! The erst"hile Iothari Pioneer 1no" merged "ith Fran#lin Templeton@

    "as the first pri&ate sector mutual fund registered in Guly (;;4! The (;;4 2?B)

    1Mutual Fund@ $egulations "ere substituted by a more comprehensi&e and

    re&ised Mutual Fund $egulations in (;;8! The industry no" functions under the

    2?B) 1Mutual Fund@ $egulations (;;8! The number of mutual fund houses "ent

    on increasing, "ith many foreign mutual funds setting up funds in )ndia and also

    the industry has "itnessed se&eral mergers and acquisitions! As at the end of 

    Ganuary -

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    Eo&ernment of )ndia and does not come under the pur&ie" of the Mutual Fund

    $egulations! The second is the T) Mutual Fund td, sponsored by 2B), P%B,

    B0B and )3! )t is registered "ith 2?B) and functions under the Mutual Fund

    $egulations! Hith the bifurcation of the erst"hile T) "hich had in March -

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    The graph indicates the gro"th of assets o&er the years!

    R"& 2 3: "SSES #N'ER !"N"E!EN

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    )##RE S$EN"RI%:

    The asset base "ill continue to gro" at an annual rate of about 4< to 47 J o&er 

    the ne.t fe" years as in&estor=s shift their assets from ban#s and other traditional

    a&enues! 2ome of the older public and pri&ate sector players "ill either close shop

    or be ta#en o&er!

    0ut of ten public sector players fi&e "ill sell out, close do"n or merge "ith

    stronger players in three to four years! )n the pri&ate sector this trend has already

    started "ith t"o mergers and one ta#eo&er! Kere too some of them "ill do"n their 

    shutters in the near future to come!

    But this does not mean there is no room for other players! The mar#et "ill "itness

    a flurry of ne" players entering the arena! There "ill be a large number of offers

    from &arious asset management companies in the time to come! 2ome big names

    li#e Fidelity, Principal, 0ld Mutual etc! are loo#ing at )ndian mar#et seriously!

    0ne important reason for it is that most major players already ha&e presence here

    and hence these big names "ould hardly li#e to get left behind!

    )n the !2! most mutual funds concentrate only on financial funds li#e equity and

    debt! 2ome li#e real estate funds and commodity funds also ta#e an e.posure to

     physical assets! The latter type of funds are preferred by corporate=s "ho "ant to

    hedge their e.posure to the commodities they deal "ith!

    For instance, a cable manufacturer "ho needs (

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    For ?.ample, Permanent Portfolio Fund, a conser&ati&e !2! based fund in&ests a

    fi.ed percentage of it=s corpus in Eold, 2il&er, 2"iss francs, specific stoc#s on

    &arious bourses around the "orld, short term and longterm !2! treasuries etc!

    )n !2!A! apart from bullion funds there are copper funds, precious metal funds

    and real estate funds 1in&esting in real estate and other related assets as "ell!@!)n

    )ndia, the 3anada based Dundee mutual fund is planning to launch a gold and a

    real estate fund before the yearend!

    )n de&eloped countries li#e the !2!A there are funds to satisfy e&erybody=s

    requirement, but in )ndia only the tip of the iceberg has been e.plored! )n the near 

    future )ndia too "ill concentrate on financial as "ell as physical funds!

    The mutual fund industry is a"aiting the introduction of D?$)CAT)C?2 in the

    country as this "ould enable it to hedge its ris# and this in turn "ould be reflected

    in it=s %et Asset Calue 1%AC@!

    2?B) is "or#ing out the norms for enabling the e.isting mutual fund schemes to

    trade in Deri&ati&es! )mportantly, many mar#et players ha&e called on the

    $egulator to initiate the process immediately!

    R%"' % )##RE

    By December -

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    The annual composite rate of gro"th is e.pected (4!6J during the rest of the

    decade! )n the last 7 years "e ha&e seen annual gro"th rate of ;J! According to

    the current gro"th rate, by year -

    concentrating on the A class cities! 2oon they "ill find scope in the gro"ing

    cities!

    Mutual fund can penetrate rural li#e the )ndian insurance industry "ith simple and

    limited products!  2?B) allo"ing the MFs to launch commodity mutual funds!

    ?mphasis on better corporate go&ernance!

    Trying to curb the late trading practices!

    )ntroduction of Financial Planners "ho can pro&ide need based ad&ice!

      $*"SSI)I$"I%N %) !##"* )#N' S$E!ES

    Any mutual fund has an objecti&e of earning income for the in&estors and* or 

    getting increased &alue of their in&estments! To achie&e these objecti&es mutual

    funds adopt different strategies and accordingly offer different schemes of 

    --

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    in&estments! 0n this basis the simplest "ay to categori/e schemes "ould be to

    group these into t"o broad classifications'

    0perational 3lassification and Portfolio 3lassification!

    Operational classification highlights the t"o main types of schemes, i!e!, open

    ended and closeended "hich are offered by the mutual funds!

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     Portfolio classification projects the combination of in&estment instruments and

    in&estment a&enues a&ailable to mutual funds to manage their funds! Any

     portfolio scheme can be either open ended or close ended!

    ". %perational $lassification

      ;a= %pen Ended Sc1emes: As the name implies the si/e of the scheme

    1Fund@ is open i!e!, not specified or predetermined! ?ntry to the fund is al"ays

    open to the in&estor "ho can subscribe at any time! 2uch fund stands ready to buy

    or sell its securities at any time! )t implies that the capitali/ation of the fund is

    constantly changing as in&estors sell or buy their shares! Further, the shares or 

    units are normally not traded on the stoc# e.change but are repurchased by the

    fund at announced rates! 0penended schemes ha&e comparati&ely better liquidity

    despite the fact that these are not listed! The reason is that in&estors can any time

    approach mutual fund for sale of such units! %o intermediaries are required!

    Moreo&er, the reali/able amount is certain since repurchase is at a price based on

    declared net asset &alue 1%AC@! %o minute to minute fluctuations in rates haunt

    the in&estors! The portfolio mi. of such schemes has to be in&estments, "hich are

    acti&ely traded in the mar#et! 0ther"ise, it "ill not be possible to calculate %AC!

    This is the reason that generally openended schemes are equity based! Moreo&er,

    desiring frequently traded securities, openended schemes hardly ha&e in their 

     portfolio shares of comparati&ely ne" and smaller companies since these are not

    generally traded! )n such funds, option to rein&est its di&idend is also a&ailable!

    2ince there is al"ays a possibility of "ithdra"als, the management of such funds

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     becomes more tedious as managers ha&e to "or# from crisis to crisis! 3risis may

     be on t"o fronts, one is, that une.pected "ithdra"als require funds to maintain a

    high le&el of cash a&ailable e&ery time implying thereby idle cash! Fund managers

    ha&e to face questions li#e N "hat to sell=! Ke could &ery "ell ha&e to sell his most

    liquid assets! 2econd, by &irtue of this situation such funds may fail to grab

    fa&orable opportunities! Further, to match quic# cash payments, funds cannot

    ha&e matching reali/ation from their portfolio due to intricacies of the stoc# 

    mar#et! Thus, success of the openended schemes to a great e.tent depends on the

    efficiency of the capital mar#et and the selection and quality of the portfolio!

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    . &ortfolio $lassification of )unds:

    Follo"ing are the portfolio classification of funds, "hich may be offered! This

    classification may be on the basis of 1a@ $eturn, 1b@ )n&estment Pattern, 1c@

    2peciali/ed sector of in&estment, 1d@ e&erage and 1e@ 0thers!

    1a@ $eturn based classification'

    To meet the di&ersified needs of the in&estors, the mutual fund schemes are made

    to enjoy a good return! $eturns e.pected are in form of regular di&idends or 

    capital appreciation or a combination of these t"o!

    i.  Income Funds: For in&estors "ho are more curious for returns, )ncome funds

    are floated! Their objecti&e is to ma.imi/e current income! 2uch funds distribute

     periodically the income earned by them! These funds can further be splitted up

    into categories' those that stress constant income at relati&ely lo" ris# and those

    that attempt to achie&e ma.imum income possible, e&en "ith the use of le&erage!

    0b&iously, the higher the e.pected returns, the higher the potential ris# of the

    in&estment!

    ii. Growth Funds:  2uch funds aim to achie&e increase in the &alue of the

    underlying in&estments through capital appreciation! 2uch funds in&est in gro"th

    oriented securities "hich can appreciate through the e.pansion production

    facilities in long run! An in&estor "ho selects such funds should be able to assume

    a higher than normal degree of ris#!

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    iii. Conservative Funds: The fund "ith a philosophy of “all things to all+ issue

    offer document announcing objecti&es as' 1i@ to pro&ide a reasonable rate of 

    return, 1ii@ To protect the &alue of in&estment and, 1iii@ to achie&e capital

    appreciation consistent "ith the fulfillment of the first t"o objecti&es! 2uch funds

    "hich offer a blend of immediate a&erage return and reasonable capital

    appreciation are #no"n as “middle of the road+ funds! 2uch funds di&ide their 

     portfolio in common stoc#s and bonds in a "ay to achie&e the desired objecti&es!

    2uch funds ha&e been most popular and appeal to the in&estors "ho "ant both

    gro"th and income!

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    or no chance of capital appreciation! 0b&iously ris# is lo" in such funds! )n this

    category "e may come across the funds called Niquid Funds= "hich speciali/e in

    in&esting shortterm money mar#et instruments! The emphasis is on liquidity and

    is associated "ith lo"er ris#s and lo" returns!

    iii. Balanced Fund : The funds, "hich ha&e in their portfolio a reasonable mi. of 

    equity and bonds, are #no"n as balanced funds! 2uch funds "ill put more

    emphasis on equity share in&estments "hen the outloo# is bright and "ill tend to

    s"itch to debentures "hen the future is e.pected to be poor for shares!

    ;c= Sector ased )unds:

    There are number of funds that in&est in a specified sector of economy! Hhile

    such funds do ha&e the disad&antage of lo" di&ersification by putting all their all

    eggs in one bas#et, the policy of speciali/ing has the ad&antage of de&eloping in

    the fund managers an intensi&e #no"ledge of the specific sector in "hich they are

    in&esting! 2ector based funds are aggressi&e gro"th funds "hich ma#e

    in&estments on the basis of assessed bright future for a particular sector! These

    funds are characteri/ed by high &iability, hence more ris#y!

    RisA ierarc1y of 'ifferent !utual )unds

    -:

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    Liquid funds

    ST debt funds

    Git funds

    Debt Funds

    Inde! funds

    Equit" funds

    Se#t$%& funds

    '&&n#ed funds

    R"& 2 >: RISB IER"R$(

    Return

    RisA

    *atest 'evelopments

    2?B) has capped mutual funds e.posure to shortterm ban# deposits at (7 per 

    cent in order to ensure that the money they ha&e collected are deployed in line

    "ith in&estment objecti&es! O2hort termO "ill be treated as a period not e.ceeding

    ;( days, 2?B) has stated, adding that no fund can put more than (7 per cent of its

    net assets in deposits of all scheduled commercial ban#s put together!

    This, ho"e&er, may be increased to -< per cent, pro&ided the trustees gi&e prior 

    appro&al! Additionally, par#ing of funds in shortterm deposits of associate and

    sponsor scheduled commercial ban#s together "ill not e.ceed -< per cent of the

    total deployment in shortterm deposits!

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     %o fund "ill par# more than (< per cent of its net assets in shortterm deposits

    "ith any one scheduled commercial ban# 1including its subsidiaries@! )ncidentally,

    trustees "ill need to ensure that no money is put in shortterm deposits of a ban# 

    "hich has in&ested in that fund!

    For liquid and debtoriented funds, an asset management company 1AM3@ "ill

    not be able to charge any in&estment management and ad&isory fee for par#ing

    money in shortterm deposits!

    2?B) had formed a committee to loo# at launching Dedicated

    )nfrastructure Funds 1D)F@ in )ndia!

    The central idea is to channelise the household sa&ings in building )ndia=s

    infrastructure! As no" mutual funds only in&est in listed companies in&ol&ed in

    infrastructure and related ser&ices! The committee recommends "ays in "hich

    mutual funds can in&est in unlisted companies in&ol&ed in infrastructure!

    The monetary policy announced by the $eser&e Ban# of )ndia 1$B)@ "as one of 

    the major de&elopments in April! This time around the $B) reiterated its intention

    to pro&ide )ndian in&estors increased access*fle.ibility to international asset

    mar#ets! A lot of measures ha&e been aimed in that direction!

    As far as the retail in&estor=s finances are concerned, there are at least 4

    announcements in this monetary policy that must ri&et his attention reduced

    rates on %$) deposits, AM3=s can in&est in o&erseas mar#ets up to 2 L 6 bn and

    the reduced ris# "eight age on home loans!This "as a relati&ely re"arding month

    4

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    for in&estors as stoc# mar#ets rallied to close in positi&e terrain! The B2? 2ense.

     posted a gain of 8!(-J to close at (4,:9- points the 25P 3% %ifty ended at

    6,

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    COMPANY

    PROFILE

     

    Reliance $apital "sset !ana-ement *td.

    4-

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    $eliance 3apital Asset Management imited 1$3AM@, a company registered

    under the 3ompanies Act, (;78 "as appointed to act as the )n&estment Manager 

    of $eliance Mutual Fund! $eliance 3apital Asset Management imited is a

    "holly o"ned subsidiary of $eliance 3apital imited, the sponsor! The entire

     paidup capital 1(

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    ;! $eliance Eilt 2ecurities Fund 1Guly -

    $3AM has commenced these acti&ities! )t has been ensured that #ey personnel of 

    the AM3, the systems, bac# office, ban# and securities accounts are segregated

    46

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    acti&ity "ise and there e.ists systems to prohibit access to inside information of 

    &arious acti&ities! As per 2?B) $egulations, it "ill further ensure that AM3 meets

    the capital adequacy requirements, if any, separately for each such acti&ity!

    $3AM has been appointed as the )n&estment Manager of O$eliance )ndia Po"er 

    FundO, a Centure 3apital Fund registered "ith 2?B) &ide $egistration

    no!)%*C3F*

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    • To carry on the acti&ity of a Mutual Fund as may be permitted at la" and

    formulate and de&ise &arious collecti&e 2chemes of sa&ings and in&estments for 

     people in )ndia and abroad and also ensure liquidity of in&estments for the nit

    holders

    • To deploy Funds thus raised so as to help the nit holders earn reasonable returns

    on their sa&ings and

    • To ta#e such steps as may be necessary from time to time to reali/e the effects

    "ithout any limitation!

    Sponsor

    $eliance 3apital Asset Management td!  is a "holly o"ned subsidiary of 

    $eliance 3apital imited, the sponsor! The entire paidup capital 1(

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    &articulars

    ;Rs.in crores=

    >??D7?5 >??67?D >??7?6 >??>7?

    otal Income 87-!Profit After Ta. 749!8( (Earnin-s per S1are

    ;Rs.=

    -;!961Basic QDiluted@

    :!4(1Basic QDiluted@

    :!4(1Basic QDiluted@

    :!

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    Eood 3onduct in the mar#etplace! At $eliance 3apital Asset Management td!,

    the implementation and obser&ance of ethical processes and policies has helped us

    in standing up to the scrutiny of our domestic and international in&estors!

    !ana-ement

    The management at $eliance 3apital Asset Management td! is committed to

    good 3orporate Eo&ernance, "hich includes transparency and timely

    dissemination of information to its in&estors and unit holders! The $eliance

    3apital Asset Management imited Board is a professional body, including "ell

    e.perienced and #no"ledgeable )ndependent Directors! $egular Audit 3ommittee

    meetings are conducted to re&ie" the operations and performance of the company!

    Employees

    $eliance 3apital Asset Management td! has a preset code of conduct for all its

    officers! )t has a clearly defined prohibition on insider trading policy and

    regulations! The management belie&es in the principles of propriety and utmost

    care is ta#en "hile handling public money, ma#ing proper and adequate

    disclosures!

    All personnel at $eliance 3apital Asset Management td! are made a"are of the

    dos and don=ts as part of the Dealing policy laid do"n by the 2ecurities and

    ?.change Board of )ndia 12?B)@! They are ta#en through a "elldesigned K$ 

     program, conducted to impart "or# ethics, the 3ode of 3onduct, information

    security, )nternet and email usage and a host of other issues!

    0ne of the core objecti&es of $eliance 3apital Asset Management td! is to

    identify issues considered sensiti&e by global corporate standards, and implement

    4:

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     policies*guidelines in conformity "ith the best practices as an ongoing process!

    $eliance 3apital Asset Management td! gi&es top priority to compliance in true

    letter and spirit, fully understanding its fiduciary responsibilities!

    1e $ustodian!

    'eutsc1e anA, "

    The Trustee has appointed Deutsche Ban#, AE located at Ioda# Kouse, Eround

    Floor, --- Dr! D!%!$oad, Mumbai6

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    1e Re-istrar

    $eliance 3apital Asset Management imited has appointed !/s. Barvy

    $omputers1are &vt. *imited to act as the $egistrar and Transfer Agent to the

    2chemes of $eliance Mutual Fund! $eliance 3apital Asset Management td! and

    the Trustee ha&e satisfied themsel&es, after underta#ing appropriate due diligence

    measures, that they can pro&ide the ser&ices required and ha&e adequate facilities,

    including systems facilities and bac# up, to do so! The Trustee has also laid do"n

     broad parameters for super&ision of the $egistrar! As $egistrar to the 2chemes,

    I3 "ill accept and process in&estors applications, handle communications "ith

    in&estors, perform data entry ser&ices, dispatch Account 2tatements and also

     perform such other functions as agreed, on an ongoing basis! The $egistrar is

    responsible for carrying out diligently the functions of a $egistrar and Transfer 

    Agent and "ill be paid fees as set out in the agreement entered into "ith it and as

     per any modification made thereof from time to time!

    rustees

     $eliance 3apital Trustee 3o! imited 1$3T3@, a company incorporated under the

    3ompanies Act, (;78, has been appointed as the Trustee to the Fund &ide the

    Trust Deed dated April -7, (;;7 e.ecuted bet"een the 2ponsor and the Trustee.

     

    6

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      Mana!ement ,eam

       Board of Directors

    (! Amitabh 3haturde&i

    -! Ianu Doshi

    4! Manu 3hadha

    6! 2ushil Tripathi

       Management Team

    &resident  Ci#rant Eugnani

    $1ief Investment %fficer  I!$ajagopal

    ead Equity Investments  Madhusudan Iela

     Equity Fund Managers

    (! 2unil B 2inghania

    -! Ash"ani Iumar  

    4! 2hailesh $aj Bhan

     Debt Fund Managers

    (! Amitabh Mohanty

    -! Amit Tripathi

    6(

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    4! Prishant Pimple

       Head of Departments

    rand and $ommunication Abraham Alapatt

    )inance and "ccounts Amit Bapna

    uman Resource

    'evelopment

    $ajesh Derhga"en

    Information ec1nolo-y Cinay %igud#ar 

    *e-al F $ompliance Bal#rishna IiniRisA !ana-ement a& 3hatur&edi

    %perations F Settlement Eeeta 3handran

    Infrastructure F

     "dministration

    Pradeep Andrade

    RF operations Prashanth D Pereira

    Sales and 'istri

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    2er&ice Pro&iders

      Re-istrar to t1e sc1emes of Reliance $apital "sset

    !ana-ement:

    Iar&y 3omputershare P&t! td

    $ustodians to t1e sc1emes of Reliance $apital "sset

    !ana-ement

    Deutsche Ban# AE

    He< Services

    $eliance )nfocomm

    64

    REISERE'

    %))I$E

    Reliance $apital "sset !ana-ement

    *imited

    $eliance Kouse, %r! Mardia Pla/a,0ff! 3!E! $oad,

    Ahmedabad 4:<

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    anAers to t1e Sc1emes of Reliance $apital "sset

    !ana-ement

    KDF3 Ban# imited

    )3)3) Ban# imited

    AB% Amro Ban# 

    3itiban# %!A!

    2tandard 3hartered Ban# 

    Deutsche Ban# AE

    K2B3 Ban# 

    T) Ban# 

    )DB) Ban# 

    )%E Cysya Ban# 

    66

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    RESE"R$

    !E%'%*%(

    67

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    RESE"R$ &R%*E!

    The purpose of my project is to analyse the ad&antages of mutual funds o&er 

    equity! Ko"e&er objecti&es of my study are as follo"s'

    RESE"R$ %0E$IVES

    To study the differences bet"een in&estment in equities and mutual funds!

    To chec# "hether it is possible to reduce ris# by in&esting in mutual funds!

    To study comparati&e returns of equities and mutual funds

    To study &arious equity di&ersified schemes of reliance mutual funds

    To rate mutual funds on the basis of their performance!

    To establish relationship of equity di&ersified schemes "ith 2ense.!

    S%#R$ES %) '""

    )n order to achie&e the &arious stated objecti&es secondary data a&ailable on the

    subject "as used and other necessary information has been collected from the

    $eliance Mutual Fund 3handigarh and other Mutual Fund Kouses, ne"spapers,

     journals, maga/ines etc!

    %%*S "&&*IE'

    Data collected from &arious secondary sources "as used for comparing the

    Mutual fund scheme using 2tandard De&iation, Beta, 3orrelation and 2harpe

    $atio measures of ris# and performance of mutual funds!

    68

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      S"N'"R' 'EVI"I%N

    2tandard de&iation is a measure of the dispersion of a set of data from its mean!

    The more spread apart the data is, the higher the de&iation! Kere, standard

    de&iation is applied to the annual rate of return of an in&estment to measure the

    in&estments &olatility 1ris#@! A &olatile stoc# "ould ha&e a high standard

    de&iation! )n mutual funds, the standard de&iation tells us ho" much the return on

    the fund is de&iating from the e.pected returns!

    A security that is &olatile is also considered higher ris# because its performance

    may change quic#ly in either direction at any moment!

    A fund that has a consistent fouryear return of 4J, for e.ample, "ould ha&e a

    mean, or a&erage, of 4J! The 2tandard De&iations for this fund "ould then be

    /ero because the fund=s return in any gi&en year odes not differ formats fourtear 

    mean of 4J! 0n the other hand, a fund that in each of the last four years returned

    7J, (9J,-J and 4

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    2o quite naturally the success of beta is hea&ily dependent on correlation bet"een

    a fund and its benchmar#! Thus if the fund=s portfolio doesn=t ha&e a relation

     benchmar# inde. then a beta "ould be grossly inadequate!

    A beta that is greater than one means that the fund is more &olatile than the

     benchmar#, "hile a beta of less than one means that the fund is less &olatile than

    the inde.! A fund "ith a beta &ery close to ( means the fund=s performance

    closely matches the inde. or benchmar#!

    )f, for e.ample, a fund has a beta of (!

    e.pects the mar#et to be bearish in the near future, the funds that ha&e betas less

    than ( are a good choice because they "ould be e.pected to decline less in &alue

    than the inde.!

      S"R&E R"I%

     Sharpe Ratio = Fund return in excess o ris! ree return" Standard #eviation o 

     und$

    The 2harpe ratio tells us "hether the returns of a portfolio are due to smart

    in&estment decisions or a result of e.cess ris#! This measurement is &ery useful

     because although one portfolio or fund can reap higher returns than its peers, it is

    only a good in&estment if those higher returns do not come "ith too much

    6:

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    additional ris#! The greater a portfolios 2harpe ratio, the better its ris#adjusted

     performance has been!

      $%RRE*"I%N

    Correlation = co%variance o & and '"num(er o variations )standard deviation

    o & series*)standard deviation o ' series*

    3orrelation is a statistical technique that measures and describes a relationship

     bet"een t"o &ariables! The measure of correlation is called correlation inde. or 

    correlation coefficient! )t gi&es one figure "hich sho"s the degree and direction

    of correlation! )t means the coefficient of correlation helps us in determining the

    closeness of relationship bet"een t"o or more &ariables!

    6;

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    ANALYSIS

    7

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    Equity investment generally refers to the buying and holding of shares of stoc# 

    on a stoc# mar#et  by indi&iduals and funds in anticipation of income from

    di&idends and capital gain as the &alue of the stoc# rises! )t also sometimes refers

    to the acquisition of equity 1o"nership@ participation in a pri&ate 1unlisted@

    company!

    The equities held by pri&ate indi&iduals are often held &ia mutual funds or other 

    forms of pooled in&estment &ehicle, many of "hich ha&e quoted prices that are

    listed in financial ne"spapers or maga/ines the mutual funds are typically

    managed by prominent fund management firms or fund managers! 2uch holdings

    allo" indi&idual in&estors to obtain the di&ersification of the fund1s@ and to obtain

    the s#ill of the professional fund managers in charge of the fund1s@!

    "nalysis

     +ortolio #iversiication

    By o"ning shares in a mutual fund instead of o"ning indi&idual stoc#s or bonds,

    your ris# is spread out! The idea behind di&ersification is to in&est in a large

    number of assets so that a loss in any particular in&estment is minimi/ed by gains

    7(

    http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Pooled_investment_vehiclehttp://en.wikipedia.org/wiki/Diversificationhttp://en.wikipedia.org/wiki/Fund_managerhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Pooled_investment_vehiclehttp://en.wikipedia.org/wiki/Diversificationhttp://en.wikipedia.org/wiki/Fund_manager

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    in others! )n other "ords, the more stoc#s and bonds you o"n, the less any one of 

    them can hurt you! arge mutual funds typically o"n hundreds of different stoc#s

    in many different industries!

    ?.ample'

      Portfolio of reliance gro"th fund as on Gune4

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    3rompton Erea&es td (!76

    Dena Ban# (!7(

    Maharashtra 2eamless td (!6;

    ?scorts td (!64

    2trides Arcolab td (!6-

    Bharati 2hipyard td (!48Erea&es td (!4-

     %))T Technologies td (!4-

    Tata Motors td (!4(

    0rient Paper 5 )ndustries

    td

    (!-6

    $adico Ihaitan td (!(8

    nited Phosphorus td (!(7

     %DTC td (!

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    technical analysts ha&e de&eloped an array of indicators, some &ery comple., that

    see# to tease useful information from the price and &olume series! Fundamental

    analysis in&ol&es study of all pertinent information rele&ant to the stoc# and

    mar#et in question in an attempt to forecast future business and financial

    de&elopments including the li#ely trajectory of the share price1s@ itself! The

    fundamental information studied "ill include the annual report and accounts,

    industry data 1such as sales and order trends@ and study of the financial and

    economic en&ironment 1e!g! the trend of interest rates@!

    Most of us ha&e neither the s#ill to find good stoc#s that suit our ris# and returns

     profile nor the time to trac# our in&estmentsbut still "ant the returns that can be

    had from equities! That=s "here mutual funds come in!

    Hhen you in&est in mutual funds, it is your fund manager "ho "ill ta#e care of 

    your in&estments! A fund manager is an in&estment specialist, "ho brings to the

    table an indepth understanding of the financial mar#ets! By &irtue of being in the

    mar#et, the fund manager is ideally placed to research &arious in&estment options,

    and in&est accordingly for you!

    76

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    77

    "mit ripat1i 'e

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     #iversiication o ris! 

    An in&estor in a mutual fund acquires a di&ersified portfolio, no matter ho" small

    his in&estment is! Di&ersification reduces the ris# of loss, as compared to

    in&esting directly in one or t"o shares or debentures or other instruments! Hhen

    an in&estor in&ests directly, all the ris# of potential loss is his o"n! Hhile

    in&esting in the pool of funds "ith other in&estors, any loss on one or t"o

    securities is also shared "ith other in&estors! This ris# reduction is one of the

    most important benefits of a collecti&e in&estment &ehicle!

    ?.ample'

    Ta#ing the beta &alues of (< stoc#s from portfolio of reliance &ision fund and

    comparing it "ith beta &alue of fund! The Beta factor describes the mo&ement in a

    stoc#s or a portfolios returns in relation to that of the mar#et return!

    "*E 2 >: E"

    2toc#s Beta

    )T3 td !88

    )nfosys Technologies td !:6

    Erasim )ndustries td !:8

    78

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    Reliance Vision )und .4?

    Tata 3onsultancy 2er&ices td !;7

    Maruti dyog td !;:

    $eliance )ndustries td (!

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     ?.ample stated belo" sho"s that to buy e&en one share of complete portfolio of 

    reliance &ision fund "ill in&ol&e in&estment of $s! 4((68!8- 1according to mar#et

     price on 4E=&i"( '"oc>'Mar#et price as

    on 4KDF3 Ban# td ((7;!:

    Gaipra#ash Associates :((!8

    Erasim )ndustries td -;68!:7Tata 3onsultancy

    ser&ices td

    ((49!79

    Tele&ision ?ighteen )ndia :-(!-

    Maruti dyog td :69!47

    )ndian Kotels 3o td (4;!8

    3ummins )ndia td 49(!7

    Tata Motors td 9

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    )T3 td (89!4

    Bharat Forge td -:-!97

    Apollo Tyres td 496!;7

    Ambuja 3ements td (Deccan A&iation td (8:!8

    Grand total3365.5>

     Return +otential 

      Mutual Funds ha&e the potential to pro&ide a higher return as they in&est in adi&ersified bas#et of selected securities!

    TAB? 6' 0%? U?A$ $?T$%

    7;

    2toc#s ( Uear $eturn

    )nfosys Technologies td (;!77

    arsen 5 Tourbo td (47!9:

    $eliance )ndustries td ;4!-;

    $eliance 3ommunications ((-!89

    Tata 3onsultancy 2er&ices -4!99

    Erasim )ndustries td 6-!64

    Maruti dyog td 9!-<

    Tata Motors td 7!69

    KDF3 Ban# 7

    #ense$ 66!96

    Reliance Vision )und 44!89

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    Yea# Re"$ 3?68+;

    ;

    +;

    ;

    0;

    s ,ec&nolo! ies L td Larsen @ ,our'o L td Re liance Industries L td Re liance Commun icat ions L td

    ,ata Consu ltanc> *ervices L td Grasim Indust ries L td Maru ti /d>o! L td ,ata Motors L td

    9DFC 5an? I,C Ltd *enseA Reliance ision Fund

    R"& 2 D: %NE (E"R RE#RN

    Kere return of 7 stoc#s is less than $eliance Cision Fund=s return! Hhile

    other 7 stoc#s and 2ense. returns are higher than fund=s return!

    ?.ample' Performance of reliance gro"th fund 1data as on 4< t h march -

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    "*E 2 D: S$E!E RE#RN V/S EN$!"RB RE#RN

    Period 2chemes

    $eturn

    Benchmar# $eturn

    1B2? (

    $eturns 2ince

    )nception

    4-!9; (-!::

    Sc!e,e' Re"$ Be$c!,a#> Re"$ 3BSE ;;6

    ;

    ;

    +;

    -;

    ;

    /;

    0;

    @;

    La'" (ea# La'" - (ea# La'" / (ea#  

    Re"$' Si$ce I$cep"io$

    R"& 2 5: S$E!E RE#RN V/S EN$!"RB 

    RE#RN

    Kere "e ha&e compared $eliance Ero"th Fund=s return "ith its

     benchmar# that is B2? (its benchmar#!

    8(

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    -ransaction Cost 

     Mutual Funds are a relati&ely less e.pensi&e "ay to in&est compared to directly

    in&esting in the capital mar#ets because the benefits of scale in bro#erage,

    custodial and other fees translate into lo"er costs for in&estors!

    Hhile in&esting in Mutual funds in&estor has to pay the entry load "hich is

    generally found to be -!-7J!

    ?ntry oad' ?.ample

    )f the entry load 1sales load@ for a scheme is -!-7J and the %AC of the scheme is

    $s! (

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    )n&esting directly in stoc#s in&ol&es follo"ing initial e.penses'

    "*E 2 5: INII"* E&ENSES %) INVESIN IN S%$BS

    Parameters 0ffline 0nline

    Account opening

    charges

    $s!648 $s! 97<

    2oft"are %ot

     pro&ided

    $s! 97<

    AM3 $s!-;;

    P!A!

    $s!-;;

    P!A!

     %ote' ?.penses as per Anandrathi 2ecurities td!

    Cariable e.pense that is bro#erage

    "*E 2 9: R%BER"E %N 'I))EREN E+#I( INVES!ENS

    Deli&ery

    )ntraday

    F 5 0

    W 2er&ice Ta. of (-!48J is also le&ied on bro#erage "hich is borne by the

    in&estor!

    84

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    At the time of "ithdra"al

    2ecurity Transaction ta. 12TT@ is charged at !-7J in mutual funds

    )n equity stoc#s ta.es are as follo"s

    "*E 2 3?: "ES %N E+#I( " I!E %) HI'R"H"*

    Ta.es Deli&er  

    y

    )ntraday F 5 0

    2TT !(-7 !

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    2o he "ill get amount "orth

    7

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    Flexi(ility

     Mutual funds offer features such as regular in&estment plans, regular "ithdra"al

     plans and di&idend rein&estment plans you can systematically in&est or "ithdra"

    funds according to your needs and con&enience

      2ystematic )n&estment Plan 12)P@' Kere an in&estor in&ests certain amount

    monthly or quarterly or half yearly in a particular scheme! For doing this in&estor 

    can a&ail the facility of auto debit!

    ?.ample' A person has to in&est $s!(-

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    Choice o Schemes

      Mutual Funds offer a family of schemes to suit your &arying needs o&er a

    lifetime! ?.ample' $eliance offers

    ?quity funds

    • $eliance Ero"th Fund

    • $eliance Cision Fund

    • $eliance ?quity Fund

    • $eliance )nde. Fund

    • $eliance Ta. 2a&er 1?22@ Fund etc

    Debt Funds

    • $eliance iquidity Fund

    • $eliance )ncome Fund

    • $eliance Medium Term Funds etc

    Balanced funds are also offered

    8:

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     %eliance %egular #a&ing Fund  is a&ailable in all the three options

    • ?quity option

    • Balanced option

    • Debt option

    "N"*(SIS %) RE*I"N$E E+#I( 'IVERSI)IE'

    )#N'S

    )n these funds e.cept for a small portion of in&estment in liquid money mar#et,

    di&ersified equity funds in&est mainly in equities "ithout any concentration on a

     particular sector1s@! These funds are "ell di&ersified and reduce sectorspecific or 

    companyspecific ris#! Ko"e&er, li#e all other funds di&ersified equity funds too

    are e.posed to equity mar#et ris#!

    'IVERSI)I$"I%N

    Di&ersification means ma#ing in&estments in different sectors! )n&estments in

    securities are spread across a "ide crosssection of industries and sectors and thus

    ris# is reduced!

    Di&ersification reduces the ris# because all stoc# may mo&e in same direction in

    the same proportion at the same time

    H% S%#*' INVES

    8;

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    This is an ideal category for those "ho "ant to participate in stoc# mar#et 5

    #no"s the ris# in&ol&ed in stoc# mar#et but ha&e fe" rupees to in&est in blue chip

    stoc#s!

    %H E( &ER)%R!E' 

    Though the short term out loo# is &olatile in longterm equity di&ersified funds

    ha&e outperformed other categories 5 stoc# mar#ets "ill lesser amount of ris# 

    than stoc# mar#ets! The a&erage returns of equity di&ersified funds are (

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    Reliance Equity )und

    N"V as on -6*:*

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    )und !ana-er 1since March -

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    )und !ana-er 1since Gan -

     enc1marA: B2? -

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    )und !ana-er 1since 0ctober -

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    )und !ana-er 1since Gune -

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    )und !ana-er 1since Gune -

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    1 2 $ " % # ( 10 11 12 1$ 1" 1% 1# 1( 1 1 20 21 22

    0

    %

    100

    10%

    110

    11%

    senseA RF R)F RR*F R3F RF RGF

    Da('

    "#e$%'

    R"& 2 9: REN' "N"*(SIS

    9:

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    The trend analysis sho"s that all the schemes sho" an up"ard trend "ith rise in

    mar#et and a do"n"ard trend "ith fall in mar#et! This clearly sho"s that e&en

    mutual funds are prone to mar#et ris#!

    $%RRE*"I%N

    0n the basis of table no! "e ha&e calculated correlation of &arious funds "ith

    2ense. "hich are'

    "*E 2 3: $%RRE*"I%N

    2chemes correlation

    $?0F !--6-88

    $$2F !79(-4:

    $?F !889

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    R"& 2 8: $%RRE*"I%N

    $eliance %$) ?quity Fund has the highest correlation! This means this fund is

    more prone to mar#et ris# "hile $eliance ?quity 0pportunities Fund is least

     prone to mar#et ris#!

    S"R&E R"I%

     Sharpe Ratio = Fund return in excess o ris! ree return" Standard #eviation o 

     und$

    The 2harpe ratio tells us "hether the returns of a portfolio are due to smart

    in&estment decisions or a result of e.cess ris#! This measurement is &ery useful

     because although one portfolio or fund can reap higher returns than its peers, it is

    only a good in&estment if those higher returns do not come "ith too much

    additional ris#! The greater a portfolios 2harpe ratio, the better its ris#adjusted

     performance has been!

    :

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    "*E 2 8: S"R&E R"I%

    Sc1eme

    s >70ul 370ul

    Standard

    'eviation Return

    RisA 

    )ree

    Return

    RisA 

    "dCuste

    d Return

    S1arpe

    RatioRE) 3>.85 3. ?.39>44 .5D69 ?.??D .5649 >3.?499

    RE%) >.6336 >.8399 ?.>965>D 3.9D6 ?.??D 3.9?6 5.??4

    RRS) 39.63 38.3D46 ?.>?D9 6.>856 ?.??D 6.>836 3.569

    RNE) >5.494> >8.965 ?.59D98D 5.D?56 ?.??D 5.D?36 4.5>?D

    RV) >?4.?4 >34.>6 .4D344 6.84>5 ?.??D 6.8895 3.>59

    R) ?4.>9 >6.3 5.398>33 6.8?68 ?.??D 6.9448 ?.9958

    •  ban# rate 1ris# free return@ 8J

    R"& 4: S"R&E R"I%

    $eliance equity fund is ha&ing the highest 2harpe ratio! 2o it is the best fund

    "hile reliance gro"th fund has the lo"est 2harpe ratio!

    :(

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    $%N$*#SI%N

    :-

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    $onclusion

    Mutual funds ha&e mar#et ris# to some e.tent but they help in co&ering

    company ris#!

    Gust li#e shares, mutual funds do not offer assured returns and protection of 

    capital and carry ris#! For instance, unli#e ban# deposits, your in&estment in a

    mutual fund can fall in &alue! )n addition, mutual funds are not insured or 

    guaranteed by any go&ernment body!

    $is# di&ersification helps, if ris# minimi/ation is your objecti&e! Because funds

    ha&e small holdings in so many different companies, high returns from a fe"

    in&estments often dont ma#e much difference on the o&erall return!

    :4

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     E$ample, $eliance appreciated 7

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    S#ESI%NS "N'

    RE$$%!EN'"I%NS

    :8

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    Recommendations

    People "ho are ready to ta#e high ris# should go in for equity in&estments

    "hile others should prefer mutual funds!

    oo#ing at the inflation in )ndia a person should understand that he "ill ha&e to

    enter the stoc# mar#et directly or through mutual funds sooner or later!

    More a"areness among the people must be created about the mutual funds! There

    should be better communication channels through "hich they can get to #no"

    about different schemes and funds!

    The people do not "ant to ta#e ris#! The AM3 should launch more di&ersified

    funds so that the ris# minimi/es! This "ill lure more and more people to in&est in

    mutual funds! ?ntry load usually &aries from - to -!-7J! Therefore, a fe" no load based funds

    should be introduced! Thus, it "ould attract more and more customers for the

    industry and lead to its e.pansion

    :9

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    BIBLIOGRAP:Y

    Searc1 En-ines:

    """!google!com

    He

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