Reliance Mutual Fund Snehasis

7/31/2019 Reliance Mutual Fund Snehasis

1/56

PROJECT REPORT

ON

SUBMITTED FOR THE FULFILLMENT OF

POST GRADUATE DIPLOMA IN MANAGMENT

UNDER GUIDANCE OF: SUBMITTED BY

Ms. SUCHISMITA PATTNAYAK SNEHASIS PADHI

PGDM (4TH

sem)

10MB07

YEAR : 2010-2012


2/56

2

PREFACE

The successful completion of this project was a uniqueexperience for me because by visiting many place andinteracting various person, I achieved a better knowledgeabout sales. The experience which I gained by doing this

project was essential at this turning point of my carrier thisproject is being submitted which content detailed analysisof the research under taken by me.

The research provides an opportunity to the student todevote his/her skills knowledge and competencies requiredduring the technical session.

The research is on the topic Reliance mutual Fund


3/56

3

ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude tovarious people who have shared their valuable time andmade possible this project ,through their direct indirectcooperation .

My honourable Mam Mrs. Swati Tiwari (HOD) andMrs. Srishti Sharma (Faculty)Rai business SchoolBHOPAL ,for allowing me to work on this project andprovide necessary help.

I thank my respected faculties ,dear friend &colleagues ,who help me in every possible ways , support

me and encouraged me to explore new dimensions.

SNEHASIS PADHI

PGDM (4TH

sem)ASIAN WORKERS DEVELOPMENT INSTITUTE

SECTOR-06, ROURKELA


4/56

4

CERTIFICATE

This to certify that Mr. SNEHASIS PADHI,PGDM(4THsem)of Asian Workers Development Institute hassuccessfully completed his project on Reliance MutualFund This report is completed under my supervision .It is onlyfor academic purpose and is a bonafide work done byresearcher .

Project Guide

Ms. Suchismita PattnayakHR FACULTY

AWDI-Sector-06,Rourkela


5/56

5

DECLARATION

I Snehasis Padhi do here by declare that the project work

entitle on the Reliance Mutual Fund is the original

work done by me.

This project report presented as a fulfillment requirementfor the Post Graduate Diploma in Managment

SNEHASIS PADHIPGDM (4THsem)

ASIAN WORKERS DEVELOPMENT INSTITUTESECTOR-06, ROURKELA


6/56

6

INTRODUCTION 8COMPANY PROFILE 15COMPETITORS OF RELIANCE MONEY 37

NEED FOR THE STUDY 39

OBJECTIVES OF THE STUDY 42RESEARCH METHDOLOGY 43DATA ANALYSIS AND INTERPRETATION 45OBSERVATION 51FINDINGS AND SUGGESTION 52CONCLUSION 54LIMITATION 55BIBLIOGRAPHY 56


7/56

7

INTRODUCTION(Page-08--------013)


8/56

8

INTRODUCTION

There are a lot of investment avenues available today in thefinancial market for an investor with an invest able surplus.He can invest in Bank Deposits, Corporate Debentures,and Bonds where there is low risk but low return. He mayinvest in Stock of companies where the risk is high and thereturns are also proportionately high. The recent trends inthe Stock Market have shown that an average retailinvestor always lost with periodic bearish tends. Peoplebegan opting for portfolio managers with expertise in stockmarkets who would invest on their behalf. Thus we hadwealth management services provided by many institutions.However they proved too costly for a small investor. Theseinvestors have found a good shelter with the mutual funds.

Like most developed

and developing countries the mutual fund cult has beencatching on in India. The reasons for this interestingoccurrence are:

1. Mutual funds make it easy and less costly for investorsto satisfy their need for capital growth, income and/orincome preservation.

2. Mutual fund brings the benefits of diversification andmoney management to the individual investor, providing aOpportunity for financial success that was once availableonly to a select few.


9/56

9

HISTORY

Unit Trust of India is the first Mutual Fund set up undera separate act, UTI Act in 1963, and started its operationsin 1964 with the issue of units under the scheme US-641. In1978 UTI was delinked from the RBI and IndustrialDevelopment Bank of India (IDBI) took over theRegulatory and administrative control in place of RBI.

the year 1987 Public Sector banks like State Bank of

India, Punjab National Bank, Indian Bank, Bank of India,and Bank of Baroda have set up mutual funds.

Corporation [LIC] and General Insurance Corporation[GIC] too have set up mutual fund. LIC established itsmutual fund in June 1989.while GIC had set up its mutual

fund in December 1990.The mutual fund industry hadassest under management of Rs. 47,004 crores.

started in Mutual Fund Industry [e.g:- Principal MutualFund.]


10/56

10

Mutual Fund Regulations

The second is the UTI Mutual Fund Ltd, sponsored by SBI,

PNB, BOB and LIC. It is registered with SEBI andfunctions under the Mutual Fund Regulations. With thebifurcation of the erstwhile UTI which had in March 2000more than Rs.76,000 crores of assets under managementand with the setting up of a UTI Mutual Fund, conformingto the SEBI Mutual Fund Regulations, and with recentmergers taking place among different private sector funds,the mutual fund industry has entered its current phase ofconsolidation and growth. As at the end of September,2004, there were 29 funds, which manage assets ofRs.153108 crores under 421 schemes.

Types of MutualFunds Scheme in IndiaWide variety of Mutual Fund Schemes exist to cater to theneeds such as financial position, risk tolerance and returnexpectations etc. The table below gives an overview into theexisting types of schemes in the Industry.

By Structureo

Open - Ended Schemeso Close - Ended Schemeso Interval Schemes

By Investment Objectiveo Growth Schemes


11/56

11

o Income Schemeso Balanced Schemeso Money MarketSchemes

Other Schemeso Tax Saving Schemeso Special Schemes

Index Schemes Sector Specfic

ADVANTAGES OF MUTUAL FUNDS

There are numerous benefits of investing in mutual fundsand one of the key reasons for its phenomenal success inthe developed markets like US and UK is the range ofbenefits they offer, which are unmatched by most otherinvestment avenues.

Diversification

The nuclear weapon in your arsenal for your fightagainst Risk. It simply means that you must spread yourinvestment across different securities (stocks, bonds, moneymarket instruments, real estate, fixed deposits etc.) and

different sectors (auto, textile, information technology etc.).
http://finance.indiamart.com/india_business_information/types_of_schemes_mutual_funds.htmlhttp://finance.indiamart.com/india_business_information/types_of_schemes_mutual_funds.html


12/56

12

Tax Benefits

Any income distributed after March 31, 2002 will besubject to tax in the assessment of all Unit holders.

However, as a measure of concession to Unit holders ofopen-ended equity-oriented funds, income distributions forthe year ending March 31, 2003, will be taxed at aconcessional rate of 10.5%

Regulations

Securities Exchange Board of India (SEBI), themutual funds regulator has clearly defined rules, whichgovern mutual funds. These rules relate to the formation,administration and management of mutual funds and alsoprescribe disclosure and accounting requirements. Such ahigh level of regulation seeks to protect the interest ofinvestors

Affordability

A mutual fund invests in a portfolio of assets, i.e. bonds,shares, etc. depending upon the investment objective of thescheme. Azn investor can buy in to a portfolio of equities,which would otherwise be extremely expensive.


13/56

13

Features related mutual funds

Reliance was the first fund house to launch sectorfunds with flexibility to invest in a range of 0% to100% in either equity or debt instruments.

Mutual fund investments linked to an ATM/debitcard a Reliance innovation Indias first long-short fund comes from Reliance Mutual Fund .

As at 31st May 2008, more than 6.6 million peoplehad invested in Reliance Mutual Fund;theinvestments comprised 16% of the countrys entiremutual fund.


14/56

14

COMPANY PROFILE

OF RELIANCE

(Page-014-----036)


15/56

15

RELIANCE INDUSTRIES LIMITED

Reliance Group Holdings has grown from a small officedata-processing equipment firm in 1961 into a major insurance andfinancial-services group in one generation under one chief.

Reliance's insurance operations constitute the nation's 27th-largest property and casualty operation. The parent company also includesa development subsidiary in commercial real estate. Reliance's internationalconsulting group contains several subsidiaries in energy, environment, andnatural resources consulting. A financial arm invests in other businesses,primarily television stations.

Reliance Insurance started as the Fire Association of Philadelphia in 1817,organized by 5 hose and 11 engine fire companies. It became the nation'sfirst association of volunteer fire departments.

Business got a boost as a result of the Great


16/56

16

Chicago Fire of 1871.The association soon developed a field of agents towrite policies across the country. For the first two years, shareholdersreceived dividends twice a year of $5 a share, which increased gradually to$10 in 1876.

In 1972, the Reliance insurance group divided its pool so thatReliance Insurance Company and itssubsidiaries handled most standard lines, while United Pacific InsuranceCompany handled the nonstandard and other operations.

In 1977, the company moved into real estate, forming ContinentalCities Corporation, which became Reliance Development Group, Inc. Thisdivision handled all real estate operations of the parent company and othersubsidiaries.

Reliance Capital Group, L.P. constituted the investment branch ofthe Reliance conglomerate.In December 1989, Reliance Capital sold its investment, Days Corporation,parent company of Days Inn of America, the world's third-largest hotelchain; it had been purchased in 1984.

Reliance Industries Limited. The Group's principalactivity is to produce and distribute plastic and intermediates, polyester

filament yarn, fibre intermediates, polymer intermediates, crackers,chemicals, textiles, oil and gas. Therefining segment includes productionand marketing operations of thePetroleum refinery. Thepetrochemicals segment includesproduction and marketing operationsof petrochemical products namely,High and Low density Polyethylene.


17/56

17

"Growth has no limit at Reliance. I keep revising my

vision.Only when you can dream it, you can do it."

Dhirubhai Ambani founded Reliance as a textile companyand led its evolution as a global leader in the materials andenergy value chain businesses.

He is credited to have brought about the equity cult inIndia in the late seventies and is regarded as an icon forenterprise in India. He epitomized the spirit 'dare to dreamand learn to excel'.

The Reliance Group is a living testimony to his indomitablewill, single-minded dedication and an unrelentingcommitment to his goals.

RELIANCE MUTUAL FUND

This groupdominates this key areain the financialsector..This megabusiness houses show that it hasassetsunder management ofRs. 90,938 crore(US$ 22.73billion) andan investor base of over6.6 million(Source:www.amfiindia.com).Reliances mutualfundschemes are managed byReliance Capital

AssetManagement LimitedRCAM), a subsidiary ofReliance Capital Limited,which holds 93.37% ofthe paid-up capitalof RCAM.

The company notchedup a healthygrowth ofRs. 16,354 crore(US$ 4.09 billion)in assets under


18/56

18

management in February2008 and helped propelthe totalindustry-wideAUM to Rs. 565,459 crore (US$ 141.36billion)(Source: indiainvestments.com). A sharp rise infixed

maturity plans (FMPs) and collection ofRs. 7000 crore(US$ 1.75 billion) through newfund offers (NFOs) createdthis surge. In AUrankings, Reliance continues to be inthenumber one spot.

India's Best Offering: Reliance Mutual Fund

Investing has become global. Today, a lot of countries arewaking up to the reality that in order to gain financialgrowth, they must encourage their citizens to not only savebut also invest. Mutual funds are fast becoming the mode ofinvestment in the world.

In India, a mutual fund company called the RelianceMutual Fund is making waves. Reliance is considered

India's best when it comes to mutual funds. Its investorsnumber to 4.6 billion people. Reliance Capital AssetManagement Limited ranks in the top 3 of India's bankingcompanies and financial sector in terms of net value.

The Anil Dhirubhai Ambani Group owns Reliance; they arethe fastest growing investment company in India so far. To

meet the erratic demand of the financial market, RelianceMutual Fund designed a distinct portfolio that is sure toplease potential investors. Reliance Capital AssetManagement Limited manages RMF.


19/56

19

Vision And Mission

Reliance Mutual Fund is so popular because it is investor

focused. They show their dedication by continually dishingout innovative offerings and unparalleled serviceinitiatives. It is their goal to become respected globally forhelping people achieve their financial dreams throughexcellent organization governance and customer care.Reliance Mutual fund wants a high performanceenvironment that is geared at making investors happy.

RMF aims to do business lawfully and without stepping onother people. They want to be able to create portfolios thatwill ensure the liquidity of the investment of people in Indiaas well as abroad. Reliance Mutual Fund also wants tomake sure that their shareholders realize reasonable profit,by deploying funds wisely. Taking appropriate risks toreach the company's potential is also one of Reliance

Mutual Fund's objectives.

Schemes

To make their packages more attractive, Reliance MutualFund created proposals called The Equity/ Growth scheme,Debt/Income Scheme, and Sector Specific Scheme.

i. Debt/Income Scheme, and Sector Specific

Scheme.

The Equity/ Growth scheme give medium to long


20/56

20

term capital increase. The major part of theinvestment is on equities and they have fairly highrisks. The scheme gives the investors varying options

like, capital augmentation or dividend preference. Thechoices are not deadlocked because if you want youmay change the options later on.

Providing steady and regular income is one ofthe Debt/Income Scheme's primary goals. TheDebt/Income scheme has in its portfolio governmentsecurities, corporate debentures fixed income

securities, and bonds. returns on Sector SpecificScheme are dependent on the performance of theindustry at which your money is invested upon.Compared to diversified funds this is a lot more riskyand you will need to really give your time onobserving the market.

Although RMF is gaining good ground in thefinancial market, remember that they are a risk takingbunch. They give higher profit because they take a lotof risks. So, if you are faint hearted, then RelianceMutual Fund is not for you.

GROWTH OF RELIANCE MONEY THROUGH

RECOGNITION


21/56

21

Growth through Recognition

Reliance has merited a series of awards and recognitions

for excellence for businesses and operations.

Corporate Ranking and Ratings:

Reliance featured in the Fortune Global 500 list ofWorlds Largest Corporations for the fourth consecutiveyear.

Ranked 269th in 2007 having moved up 73 placesfrom the previous year.

Featured as one of the worlds Top 200 companies interms of Profits.

Among the top 25 climbers for two years in a row. Featured among top 50 companies with the biggest

increase in Revenues.

Ranked 26th within the refining industry.


22/56

22

Reliance is ranked 182nd in the FT Global 500 (up fromprevious years 284th rank).

PetroFed, an apex hydrocarbon industry association,conferred the PetroFed 2007 awards in the categoriesof Refinery of the Year and Exploration &Production - Company of the Year.

Brand Reliance was conferred the Bronze Award atThe Buzziest Brands Awards 2008, organized byagencyfaqs!

Institute of Economic Studies conferred the UdyogRatna award in October 2007 for contributions tothe industry.

Chemtech Foundation conferred the Hall of Famein February 2008 for sterling contributions to theindustry.

Chemtech Foundation conferred the OutstandingAchievement - Oil Refining for work at the JamnagarManufacturing Division.

Petroleum Federation of India conferred the Refinery ofthe Year Award - 2007 to Jamnagar ManufacturingDivision

The Plastics Export Promotion Council-PLEXCOUNCIL Export Award in the category ofPlastic Polymers for the year 2006-2007 was awardedto Reliance being the largest exporter in this category.


23/56

23

HEALTH:-

Jamnagar Manufacturing Division was conferred theGolden Peacock Award for Occupational Health &

Safety - 2007 by Institute of Directors.

Jamnagar Manufacturing Division was conferred theICC Award for Water Resource Management inChemical Industry.

Jamnagar Manufacturing Division was conferred theGood House Keeping Award from BarodaProductivity Council.

Jamnagar Manufacturing Division was conferred theBEL-IND Award for the best scientific paper at the58th National Conference of Occupational Health.

Naroda Manufacturing Division was conferred theSafety Award and Certificate of Appreciationpresented by Gujarat Safety Council & Directorate ofIndustrial Safety & Health, Gujarat State for therecognition of safety performance at the 29th StateLevel Annual Safety Conference.

Dahej Manufacturing Division received BSC 5-Starrating from British Safety Council, UK.

Dhenkanal Manufacturing Division receivedthe 2ndPrize for Longest Accident Free Period from the

Honble Minister of Labour, State of Orissa.


24/56

24

Hoshiarpur Manufacturing Division bagged the FirstPrize in Safety in Punjab, organized by Punjab

Safety Council.

Patalganga Manufacturing Division won the GoldMedal at CASHe (Change Agents for Safety, Healthand Environment) Conference. It also won the IIIPrize in Process Management category forPresentation on Safety through Design in chemicalprocess industry in Petrosafe 2007 Conference.

Kurkumbh Manufacturing Division won theGreentech Safety Award silver trophy foroutstanding achievement in safety management inchemical sector.

Hazira Manufacturing Division received the TERICorporate Environmental Award (Certificate ofAppreciation) for PET recycling project.

Nagothane Manufacturing Division received theShrishti G-Cube Award for Good Green Governancefrom Minister for Commerce and Industry, on WorldEarth Day.

Training and Development:-


25/56

25

Jamnagar Refinery was adjudged the winner of theGolden Peacock National Training Award-2007.

Patalganga Manufacturing Division won the ASTD(American Society for Training & Development)Excellence in Practice Award for innovative practicetitled Learning Functions role as Business partner:Empowering people with Knowledge to achieveBusiness Goals.

Reliance won the CNBC TV-18 instituted Jobstreet.comJobseekers Employer of Choice Award.

Energy Excellence:-

Exploration & Production (E&P) Division won TheInfraline Energy Excellence Awards 2007:Hydrocarbon Columbus Award for Excellence in

Petroleum Exploration.

Patalganga Manufacturing Division won the FirstPrize in Energy Conservation in State ofMaharashtra organized by Maharashtra EnergyDevelopment Agency (MEDA).

Jamnagar Manufacturing Division won the Oil &

Gas Conservation Award -2007 from the Centre forHigh Technology, Ministry of Power & Natural Gasfor the excellent performance in reduction/eliminationof steam leaks in the plant.


26/56

26

Jamnagar Manufacturing Division was the recipientof the Infraline Energy Award-2007 by Ministry ofPower.

Hazira Manufacturing Division won the Governmentof India Energy Conservation Award (2007) conferredby the Bureau of energy efficiency and Ministry ofPower.

Hazira Manufacturing Division was adjudgedExcellent Energy Efficient Unit at Energy Summit-2007 by CII.

Vadodara Manufacturing Division received the CIIaward for Excellence in Energy Management - 2007as energy efficient unit. This division also received the2nd prize in National Energy Conservation Award

2007 from Bureau of Energy efficiency, Ministry ofPower, Government of India.

The Companys manufacturing divisions at Vadodaraand Hazira were honoured with CII-National award forexcellence in water management - 2007 as waterefficient unit in Within the fence category.Additionally, Hazira Manufacturing Division washonoured as water efficient unit Beyond the Fencecategory.


27/56

27

Quality:-

For the first time ever, globally, a petrochemicalcompany bagged the Deming Prize for Management

Quality. The Quality Control Award for Operations

Business Unit 2007 was awarded to the HaziraManufacturing Division for Outstanding Performanceby Practicing Total Quality Management.

QUALTECH PRIZE 2007, which recognizes

extraordinary results in improvement and innovation,was won by Hazira Manufacturing Division for itsSmall Group Activity Project.

Vadodara Manufacturing Divisions Polypropylene-IV(PP-IV) plant was conferred the Spheripol ProcessOperability Award-2006 for the highest operabilityrate with an on stream factor 98.97% by M/s.

BASELL, Italy.

Allahabad Manufacturing Division won the Excellent

Category Award at National Convention of QualityCircle (NCQC) - 07.

Six-Sigma:-

Lean Six sigma project on Reducing retention time ofcaustic soda lye tankers at Jamnagar won the 1stprize in the national level competition held by IndianStatistical Institute (ISI).


28/56

28

Patalganga Manufacturing Divisions Six SigmaProject on Improve Transfer Efficiency for Automaticwinders in PFY won the 2nd Prize for Best design for

Six Sigma Project in International Six SigmaCompetition organized by IQPC (InternationalQuality and Productivity center).

Barabanki Manufacturing Division won the 3rd prizein All India Six Sigma case study contest 2008 for

the Case study on Reduction of waste of Plant 2 from16% to 8%.

Hoshiarpur Manufacturing Division won the 2nd prizein Six Sigma competition at National Levelorganized by ISI and Quality Council of India (inmanufacturing category), while Dhenkanal andBarabanki Manufacturing Divisions won the 3rdprize.

Vadodara Manufacturing Divisions Six Sigma projectwon the 1st prize as the Best Six Sigma project atNational level by CII.

Technology, R&D and Innovation:-

Vadodra Manufacturing Divisions R&D bagged anaward from Indian Institute of Chemical Engineers forExcellence in Process / Product Development for thework on Eco friendly Process for Acetonitrile

Recovery.


29/56

29

DSIR National Award for R&D Efforts in Industry(2007) was conferred on Hazira Manufacturing

Division for the Cyclehexane Recovery Project.

Patalganga Manufacturing Divisions Project titledAugmentation of ETP and use of biogas in Firedheaters won the Best Innovative Project from CII.

Reliance bagged the Innovation Award at TechConverge 2007 for innovative developments in short-cut fibres.

Hazira Manufacturing Division won the GoldenPeacock Innovation Award - 2007 for its CyclohexaneRecovery Process.

Information Technology:-

CIO of the Year Award for the best IT-enabledorganization in India for the Year 2007.

Ones to Watch - CIO - USA Award, for figuringamong the top 20 organizations fostering excellence inIT team.

The Skoch Challenger Award conferred for the bestIT Head (managing the most IT enabled organization)

of the Year 2007.

Best IT Implementation Award, by PC Quest forKnowledge Management Systems portal (KMS).


30/56

30

CIO Excellence Award for Chemical IndustryInformation Technology Forum for exemplaryInformation Technology implementation amongst

global chemical companies.CTO Forum Hall of Fame Award for the best CIOs inIndia for not only providing service to their


31/56

31

PRODUCT S : RELIANCE MONEY

The products on offer from Reliance MutualFund fall into

four main categories: equity, debt,sector specific and ETF(Exchange Traded Fund).Each taps into a specificaudience profile fulfilling their varying needs.Under theequity category, Reliance has118 SUPERBRANDS sixteenschemes with Reliance Growth Fundand Reliance VisionFund as its flagship schemes.Reliance Equity OpportunitiesFund is a schemewhich operates in the multi-cap/multi-sectorsegment; Reliance Equity Fund is a long-shortfund,Reliance Quant Plus Fund is a quant fund.Reliance offersinvestments in banking, power,media, entertainment andpharmaceuticals;Reliance Tax Saver Fund and RelianceEquity-Linked Savings Fund Series 1 are tax savingschemes; an NRI-dedicated equity scheme istailored for non-resident Indians. RelianceRegular SavingsFund is an asset-allocation fund with three options.Under

the debt and liquid categories, Reliancehas liquid funds,liquid plus funds, income funds,an NRI-dedicated debtfund, gilt funds, fixedmaturity plans and an interval fund.Inthe hybrid category, Reliance Monthlyincome Plan is apopular option

Reliance understands that investments in mutual

fundshare a function of knowledge dissemination andawareness of products amongst potential investors. Inbuilding its ownbase of assets under management it willnecessarily have to carry the entire mutual fundindustry.Towards this end Reliance has launched a t wo-pronged initiative.In the first pincer it has created


32/56

32

aformidable network of 26,000 distributors including someof thebiggest names in the banking sector.This whos who

of the financial industry comprises such giants asCitibank,

Standard Chartered, HSBC,ICICI, AXIS, Bank of Baroda,Central Bank of India, Allahabad Bank andfund housessuch as JM, DSP Merrill Lynch and Karvy in addition to amassive infrastructure of direct financial investmentofficers. Thisprodigious effort is supplemented bythebrands captive network of 120 branch officesand 30 financial centres. In the second prong, Reliance hascreated a series of informationpacked presentations which

help dispel misinformationGroup.This mega business housedominates this key area in the financial sector.Figures forMarch 2008 show that it has emerged as the top Indianmutual fund with average assets under management of Rs.90,938 crore (US$ 22.73 billion) and an investor base ofover 6.6 million (Source:www.amfiindia.com).

Reliances mutual fund schemes are

managed by RelianceCapitalAssetManagementLimited(RCAM), a subsidiary of Reliance Capital Limited,whichholds 93.37% of the paid-up capitalof RCAM.The companynotchedup a healthy growth ofRs. 16,354 crore (US$4.09billion)inassetsunder management in February2008and helped propelthe total industry-wideAUM to Rs.565,459 crore(US$ 141.36 billion) (Source:indiainvestments.com). A sharp rise infixed maturity plans(FMPs)andcollection of Rs. 7000 crore (US$ 1.75 billion)through new fund offers (NFOs) created this surge.InAUMrankings, Reliance continues to be in thenumberone spot.


33/56

33

Reliance was the first fund house to launch sector fundswith flexibility to invest in a range of 0% to 100% in eitherequity or debt instruments Mutual fund investments linked

to anATM/debit card are a Reliance innovationIndias firstlong-short fund comes from Reliance Mutual Fund As at31st May 2008, more than 6.6 million people had investedin Reliance Mutual Fund;the investments comprised 16%of the countrys entire mutual fund asset base.


34/56

34

Achievements

In two successive joint surveys by The Economic TimesBrand Equity andACNielsen, Reliance was recognised asIndias Most Trusted Mutual Fund.Thecompanyalsowalkedaway with seven other scheme prizes five of them beingoutright winners in the Gulf 2007 Lipper Awards.Theseincluded the Fund House of the Year by Lipper GCC aswell asICRA Online and the Most Improved FundHouse byAsia Asset Management.It also received the NDTVBusiness Leadership Award 2007 in the mutual fundcategory and runners up recognition as the Best FundHouse in theOutlook Money-NDTV Profit Awards. Inaddition,the company received thecoveted CNBC Web18Genius of the Web distinction for the Best Mutual FundWebsite inthe country. RCAM was awarded the IndiaOnshore Fund House 2008 instituted by theAsian Investor

magazine.The company also won the India Equities awardin the 5-yearPerformance category.


35/56

35

COMPARATIVE STUDY OF MUTUAL FUND

Major competitior of Reliance Money

Company Profile of HDFC

HDFC BANK is one of the leading Depository Participant(DP) in the country with over 8 Lac demat accounts.

HDFC Bank Demat services offers you a secure andconvenient way to keep track of your securities andinvestments, over a period of time, without the hassle ofhandling physical documents that get mutilated or lost intransit.

HDFC BANK is Depository particpant both with -NationalSecurities Depositories Limited (NSDL) and CentralDepository Services Limited (CDSL).

Features & Benefits

As opposed to the earlier form of dealing in physicalcertificates with delays in transaction, holding and tradingin Demat form has the following benefits :

Settlement of Securities traded on the exchanges aswell as off market transactions. Shorter settlements thereby enhancing liquidity. Pledging of Securities.Electronic credit in public issue.


36/56

36

Auto Credit of Rights / Bonus / Public Issues /Dividend credit through ECS.

Auto Credit of Public Issue refunds to the bankaccount.

No stamp duty on transfer of securities held in dematform.No concept of Market Lots.Change of address, Signature, Dividend Mandate,

registration of power of attorney, transmission etc. can beeffected across companies held in demat form by a singleinstruction to the Depository Participant (DP).

Secured & easy transaction processing

HDFC Bank Ltd provides convenient facility called'SPEED-e' (Internet based transaction) whereby accountholder can submit delivery instructions electronicallythrough SPEED-e website (https://speed-e.nsdl.com).

SPEED-e offers secured means of transaction processingeliminating preparation of instruction slips and submissionof the same across the counter to the depositoryparticipant. The 'IDEAS' facility helps in viewing thecurrent transactions and balances (holdings) of Demataccount on Internet on real time basis.

Company Profile of ICICIICICIDirect (or ICICIDirect.com) is stock trading company ofICICI Bank. Along with stock trading and trading in derivatives inBSE and NSE, it also provides facility to invest in IPOs, MutualFunds and Bonds. Trading is available in BSE and NSE


37/56

37

ICICIDirect offers 3 different online trading platforms to itscustomers

1.Investment Account

Along with stock trading and IPO investing in BSE and NSE,Wise Investment account also provide options to invest inMutual Funds and Bonds online.

Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. ICICI Directoffers various options while investing in Mutual Funds likePurchase Mutual Fund, Redemption and switch between

different schemes, Systematic Investment plans, Systematicwithdrawal plan and transferring existing Mutual Funds in toelectronic mode. This account also provides facility to investin Government of India Bonds and ICICI Bank Tax SavingBonds.ICICIDirect.com website is the primary tool to invest inMutual Funds, IPOs, Bonds and stock trading.

Reliance MoneyTax Saving funds Reliance Money:

Tax-saving funds (due to their equity-orientednature) are capable of clocking far superior returns theirassured return counterparts like National SavingsCertificate (NSC) and Public Provident Fund (PPF).However investors must appreciate that the risk profile of

tax-saving funds tends to be proportionately higher.

Reliance Tax Saver (ELSS) Fund (RTSF) is the latestentrant in the tax-saving funds segment. Flagshipdiversified equity funds (Reliance Growth Fund andReliance Equity Fund) from Reliance Mutual Fund have


38/56

38

emerged as top performers in their segment across timehorizons. However investors should note that these fundsare managed aggressively; also they have displayed an

opportunistic streak by moving fluidly across marketsegments (large caps, mid caps) to clock superior growth.RTSF is likely to be a similar (high risk - high return)investment proposition within the tax-saving funds segment.

SYSTEM INVESTMENT PLAN

SIP is a way of investing in Mutual Funds. It isdesigned for those investors who are willing to investregularly rather than making a lump sum investment. It isjust like a recurring deposit with the post office or bankwhere we deposit some amount every month. The differencehere is that the amount is invested in a mutual fund. MutualFund makes investment according to their objective .Theycollect fund from investor and invests it. Every fund has anobjective and pattern of investing. There are various kindsof mutual funds. There are equity funds and debt funds.Further equity funds can be divided into equity diversifiedmutual fund where funds are invested in shares of differentcompanies , sectoral funds where investment is made inshares of some particular sector like FMCG, IT, Auto, Oil& Gas, Banking etc. Every fund has a NAV (net asset

value) which is the value per unit. It is calculated as thetotal asset is divided by the number of outstanding units. Asthe value of asset changes, nav also changes.


39/56

39

The best way to invest in stock market is mutual fundthrough Systematic Investment Plan. But to get the benefitof an SIP, a long term horizon is must.


40/56

40

OBJECTIVE

To give a brief idea about the benefits available from

mutual Fund investment.

To give an idea of the types of schemes available.

Explore the recent developments in the mutual funds inIndia

To give an idea about the regulations of mutual funds.

To analyze reliance mutual fund strategy against itscompetitor.


41/56

41

RESEARCH METHODOLOGY

Research as a care full investigation or enquiry speciallythrough search for a new facts in any branch ofknowledgeResearch is an academic activity and such as the termshould be used in technical sense.The manipulation ofthings , concepts or symbols for the purpose ofgeneralizing to extend ,correct or verify knowledge,whether that knowledge through objective.

TYPES OF RESEARCH

ANALYTICAL RESERCH

In this project work, analytical research is used. In thisproject has to use facts or information .Already usedavailable ,and analyze these to make a critical evolution ofthe material.


42/56

42

METHODS OF DATA COLLECTION

In this project work primary and secondary data sources ofdata has been used.

Primary data: Primary data collect through observation ,orthrough direct communication or doing experiments .

Secondary data:Secondary data means already availablethrough books ,journals , magazines ,newspaper.

TOOLS OF ANALYSIS

For the proper analysis of data Quantitative Techniquesuch as percentage method was used.


43/56

43

DATA ANALYSIS AND INTERPRETATION

Q.1 Which banking mutual fund do you prefer for mutualFund ?

Co mpany Name Persentages of respondents

Reliance Money 25

HDFC 10ICICI 15

INTERPRETATION: 50% of respondent have Reliance

Money , 30% of respondent says that other%.

0

5

10

15

20

25

Reliance HDFC ICICI


44/56

44

Q.2 Which banking mutual fund offer you goodinvestment plan?

Company Name Percentage of respondentReliance 22

HDFC 21

ICICI 7

INTERPRETATION:

44% respondent for Reliance,32 %forHdfc,14% for ICICI

0

5

10

15

20

25

RELIANCE HDFC ICICI


45/56

45

Q.3 Which banking mutul fund offer a lot of tax saving?Company Name Percentage of respondent

Reliance 20

HDFC 15

ICICI 15

INTERPRETATION:40% respondent for Reliance,30 %forHdfc,30% for ICICI

0

5

10

15

20

Reliance HDFC ICICI


46/56

46

Q.4 Which banking mutual fund offer you a large number

of product & services?Company Name Percentage of respondent

Reliance 18

HDFC 16

ICICI 16

INTERPRETATION:36% respondent for Reliance,32%forHdfc,32% for ICICI

15

15.5

16

16.5

17

17.5

18

Reliance HDFC ICICI


47/56

47

Q.5 Which banking mutual fund offer you a good e-mailfacility ?Company Name Percentage of respondent

Reliance 22

HDFC 15

ICICI 13

INTERPRETATION:

44% respondent for Reliance,30%forHdfc,26% for ICICI

0

5

10

15

20

25

Reliance HDFC ICICI


48/56

48

Represent by pie chart

Reliance41%

HDFC

30%

ICICI

29%


49/56

49

OBSERVATION

50% of respondent have Reliance Money , 30% ofrespondent says that other%.

44% respondent for Reliance,32 %forHdfc,14% forICICI.

40% respondent for Reliance,30 %forHdfc,30% forICICI.

36% respondent for Reliance,32%forHdfc,32% forICICI.

44% respondent for Reliance,30%forHdfc,26% forICICI.


50/56

50

FINDINGS AND SUGGESTION

In Equity Schemes we have taken Reliance Vison Fund andReliance growth Fund . Both schemes are open ended but

Reliance Growth fund is more valuable for RelianceMutual Fund than reliance vision Fund.

In Dedt scheme we have taken Reliance money Manager

Fund and Reliance Liquidty Fund .In it boths schemes areopen ended but reliance money manager is more beneficialfor reliance mutual fund .

In sector specific scheme we have taken Reliance mediaand entertainment fund and Reliance Pharma fund scheme

both is more efficient for Reliance Mutual Fund.

Above all the schemes of Reliance Mutual Fund Debtschemes are best schemes for Mutual Fund .

There is a Good investment plan and saving scheme inreliance Mutual Fund.


51/56

51

SUGGESTION

Reliance Money have to add some extra features in itwith aggressive marketing promotional strategy.

Advertisement on television is the main source ofattraction so the company must advertise its productsheavily.

Product must be improved .

There should be provision of complain suggestionboxes at each branch.


52/56

52

CONCLUSION

Mutual Fund investment is better than other raising fund .Reliance Mutual Fund have good returns in investment .

A good brand is always welcomed over here people aremore aware and conscious for the brand so they go for theyare ready to spend some extra bucks for the quality .

At last all con be concluded by that Reliance Money is stillgrowing industry in India and is still exploring its potentialand prospects in here.


53/56

53

Limitations

The time constraint was one of the major problems. The study is limited to the different schemes availableunder the mutual funds selected. The study is limited to selected mutual fund schemes. The lack ofinformation sources for the analysis part.


54/56

54

BIBLIOGRAPHY

Websites:www.reliancemoney.comwww.hdfc.comwww.icicidirect.com

Referencebooks:

FINANCIAL INSTITUTIONS AND MARKETS-L.M.BHOLEINVESTMENT MANAGEMENT- V.K.BHALLAResearch Methodology - Kothari


55/56

55

QUESTIONNAIRQ.1 Which banking mutual fund do you prefer for mutualFund ?

Reliance MoneyHDFCICICI

Q.2 Which banking mutual fund offer you goodinvestment plan?


Q.3 Which banking mutul fund offer a lot of tax saving?


Q.4 Which banking mutual fund offer you a large numberof product & services?


Q.5 Which banking mutual fund offer you a good e-mailfacility ?

Reliance Money


56/56

HDFCICICI

Documents

Reliance Mutual Fund Snehasis