Summer Tranning Report

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ONRELIANCE MUTUAL FUNDSUBMITTED FOR THE PARTIAL FULFILLMENT OFMASTER OF BUSINESS ADMINISTRATION(INDUSTRY INTEGRATED)

TOMADURAI KAMARAJ UNIVERSITYUNDER GUIDANCE OF:SUBMITTED BYMs. SRISHTI SHARMAPRAVEEN KUMARM.B.A (2nd Semester)A8750123rbsRAI BUSINESS SCHOOLMADURAI KAMARAJ UNIVERSITY,BHOPAL

YEAR : 2008-2010

PREFACEThe successful completion of this project was a unique experience for me because byvisiting many place and interacting various person ,I achieved a better knowledge aboutsales . The experience which I gained by doing this project was essential at this turningpoint of my carrer this project is being submitted which content detailed analysis of the

research under taken by me.The research provides an opportunity to the student to devote his/her skills knowledgeand competencies required during the technical session.The research is on the topic Reliance mutual Fund 2

ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to various people who have sharedtheir valuable time and made possible this project ,through their direct indirectcooperation .My honourable Mam Mrs. Swati Tiwari (HOD) and Mrs. Srishti Sharma (Faculty)Raibusiness School BHOPAL ,for allowing me to work on this project and provide necessaryhelp.I thank my respected faculties ,dear friend & colleagues ,who help me in every possibleways , support me and encouraged me to explore new dimensions.


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PRAVEEN KUMARMBA 2nd SemesterRai Business SchoolBhopal3

CERTIFICATEThis to certify that Ms. PRAVEEN KUMAR,M.B.A IISemester ,Rai Business School BHOPAL,Madurai Kamaraj University has done projecton Reliance Money and has successfully completed his project on Reliance MutualFund This report is completed under my supervision .It is only for academic purpose and is a

bonafide work done by researcher .Project GuideMrs. Srishti SharmaFACULTYRai Business School,BHOPALDECLARATION4

I Priyanka Asati do here by declare that the project work entitle on the reliance mutualFund in Indiaat Bhopal is the original work done by me .This project report presented as a partial fulfillment requirement for the degree of Masterof Business administration.PRAVEEN KUMARMBA 2nd semesterRai business SchoolBhopalCONTENTS5

1.INTRODUCTION82.COMPANY PROFILE153.COMPETITORS OF RELIANCE MONEY374.NEED FOR THE STUDY39


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5.OBJECTIVES OF THE STUDY426.RESEARCH METHDOLOGY437.DATA ANALYSIS AND INTERPRETATION 45

8.OBSERVATION519.FINDINGS AND SUGGESTION5210.CONCLUSION5411.LIMITATION5512.BIBLIOGRAPHY566

INTRODUCTIONINTRODUCTION7

There are a lot of investment avenues available today in the financial market for aninvestor with an invest able surplus. He can invest in Bank Deposits, CorporateDebentures, and Bonds where there is low risk but low return. He may invest in Stock ofcompanies where the risk is high and the returns are also proportionately high. The recenttrends in the Stock Market have shown that an average retail investor always lost withperiodic bearish tends. People began opting for portfolio managers with expertise in stockmarkets who would invest on their behalf. Thus we had wealth management servicesprovided by many institutions. However they proved too costly for a small investor.These investors have found a good shelter with the mutual funds.

Like most developed and developing countries the mutual fund cult has been catching onin India. The reasons for this interesting occurrence are:1.Mutual funds make it easy and less costly for investors to satisfy their need for capitalgrowth, income and/or income preservation.2. Mutual fund brings the benefits of diversification andmoney management to the individual investor, providing aOpportunity for financial success that was once available


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only to a select few.HISTORY8

Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act in 1963,and started its operations in 1964 with the issue of units under the scheme US-641. In1978 UTI was delinked from the RBI and Industrial Development Bank of India (IDBI)took over the Regulatory and administrative control in place of RBI.In 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.Apart from these above mentioned banks Life Insurance Corporation [LIC] and GeneralInsurance Corporation [GIC] too have set up mutual fund. LIC established its mutual

fund in June 1989.while GIC had set up its mutual fund in December 1990.The mutualfund industry had assest under management of Rs. 47,004 crores.With the entry of Private Sector Funds a new era has started in Mutual Fund Industry[e.g:- Principal Mutual Fund.]Mutual Fund Regulations9

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It isregistered with SEBI and functions under the Mutual Fund Regulations. With thebifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores ofassets under management and with the setting up of a UTI Mutual Fund, conforming tothe SEBI Mutual Fund Regulations, and with recent mergers taking place amongdifferent 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, whichmanage assets of Rs.153108 crores under 421 schemes.Types of MutualFunds Scheme in India10

Wide variety of Mutual Fund Schemes exist to cater to the needs such as financialposition, risk tolerance and return expectations etc. The table below gives an overviewinto the existing types of schemes in the Industry.


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By StructureoOpen - Ended Schemeso

Close - Ended SchemesoInterval SchemesBy Investment ObjectiveoGrowth SchemesoIncome SchemesoBalanced Schemes

oMoney Market SchemesOther SchemesoTax Saving SchemesoSpecial Schemes

Index SchemesSector Specfic

ADVANTAGES OF MUTUAL FUNDS11

There are numerous benefits of investing in mutual funds and one of the key reasons forits phenomenal success in the developed markets like US and UK is the range of benefitsthey offer, which are unmatched by most other investment avenues.DiversificationThe nuclear weapon in your arsenal for your fight against Risk. It simply means that youmust spread your investment across different securities (stocks, bonds, money marketinstruments, real estate, fixed deposits etc.) and different sectors (auto, textile,information technology etc.).


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Tax BenefitsAny income distributed after March 31, 2002 will be subject to tax in the assessment ofall Unit holders. However, as a measure of concession to Unit holders of open-endedequity-oriented funds, income distributions for the year ending March 31, 2003, will betaxed at a concessional rate of 10.5%.

Regulations12

Securities Exchange Board of India (SEBI), the mutual funds regulator has clearlydefined rules, which govern mutual funds. These rules relate to the formation,administration and management of mutual funds and also prescribe disclosure andaccounting requirements. Such a high level of regulation seeks to protect the interest of

investorsAffordabilityA mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon theinvestment objective of the scheme. Azn investor can buy in to a portfolio of equities,which would otherwise be extremely expensive.Features related mutual funds13Reliance was the first fund house to launch sector funds with flexibility to invest in arange of 0% to 100% in either equity or debt instruments.

Mutual fund investments linked to an ATM/debitcarda Reliance innovation Indias first long-short fund comesfrom Reliance Mutual Fund .As at 31st May 2008, more than 6.6 million people had invested in Reliance MutualFund;the investments comprised 16% of the countrys entire mutual fund.14COMPANY PROFILE OFRELIANCE

15


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RELIANCE INDUSTRIES LIMITEDReliance Group Holdings has grown froma small office data-processing equipment firm in 1961 intoa major insurance and financial-services group in onegeneration under one chief.Reliance's insurance operations constitute the nation's 27th-largest property and casualtyoperation. The parent company also includes a development subsidiary in16commercial real estate. Reliance's international consulting group contains severalsubsidiaries in energy, environment, and natural resources consulting. A financial arminvests in other businesses, primarily television stations.

Reliance Insurance started as the Fire Association of Philadelphia in 1817, organized by 5hose and 11 engine fire companies. It became the nation's first association of volunteerfire departments.Business got a boost as a result of the GreatChicago Fire of 1871.The association soon developed a field of agents to write policiesacross the country. For the first two years, shareholders received dividends twice a yearof $5 a share, which increased gradually to $10 in 1876.In 1972, the Reliance insurance group divided itspool so that Reliance Insurance Company and itssubsidiaries handled most standard lines, while United Pacific Insurance Companyhandled the nonstandard and other operations.

In 1977, the company moved into real estate, forming Continental Cities Corporation,which became Reliance Development Group, Inc. This division handled all real estateoperations of the parent company and other subsidiaries.17 Reliance Capital Group, L.P. constituted theinvestment branch of the Reliance conglomerate.In December 1989, Reliance Capital sold its investment, Days Corporation, parentcompany of Days Inn of America, the world's third-largest hotel chain; it had beenpurchased in 1984.Reliance Industries Limited. The Group's principal activity is to produce and distributeplastic and intermediates, polyester filament yarn, fibre intermediates, polymerintermediates, crackers, chemicals, textiles, oil and gas. The refining segment includes

production and marketing operations of the Petroleum refinery. The petrochemicalssegment includes production and marketing operations of petrochemical productsnamely, High and Low density Polyethylene.18


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"Growth has no limit at Reliance. I keep revisingmy vision.Only when you can dream it, you can do it."Dhirubhai Ambani founded Reliance as a textile company and led its evolution as aglobal leader in the materials and energy value chain businesses.He is credited to have brought about the equity cult in India in the late seventies and isregarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream andlearn to excel'.The Reliance Group is a living testimony to his indomitable will, single-mindeddedication and an unrelenting commitment to his goals.RELIANCE MUTUAL FUND

This groupdominates this key areain the financialsector..This megabusiness housesshow that it has assetsunder management ofRs. 90,938 crore(US$ 22.73 billion) andaninvestor base of over6.6 million (Source:www.amfiindia.com).Reliancesmutual19

fundschemesaremanagedbyRelianceCapitalAssetManagement LimitedRCAM), a subsidiary ofReliance Capital Limited,which holds 93.37% ofthe paid-up capitalof RCAM.The company notchedup a healthy growth ofRs. 16,354 crore(US$ 4.09 billion)in assetsunder management in February2008 and helped propelthe total industry-wideAUM to Rs.565,459 crore (US$ 141.36 billion)(Source: indiainvestments.com). A sharp rise infixed

maturity plans (FMPs) and collection ofRs. 7000 crore (US$ 1.75 billion) throughnewfund offers (NFOs) created this surge. In AUrankings, Reliance continues to be inthenumber one spot.India's Best Offering: Reliance Mutual FundInvesting has become global. Today, a lot of countries are waking up to the reality that inorder to gain financial growth, they must encourage their citizens to not only save butalso invest. Mutual funds are fast becoming the mode ofinvestment


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intheworld.In India, a mutual fund company called the Reliance Mutual Fund is making waves.Reliance is considered India's best when it comes to mutual funds. Its investors number to

4.6 billion people. Reliance Capital Asset Management Limited ranks in the top 3 ofIndia's banking companies and financial sector in terms of net value.The Anil Dhirubhai Ambani Group owns Reliance; they are20

the fastest growing investment company in India so far. To meet the erratic demand ofthe financial market, Reliance Mutual Fund designed a distinct portfolio that is sure to

please potential investors. Reliance Capital Asset ManagementLimitedmanagesRMF.VisionAndMissionReliance Mutual Fund is so popular because it is investor focused. They show theirdedication by continually dishing out innovative offerings and unparalleled serviceinitiatives. It is their goal to become respected globally for helping people achieve theirfinancial dreams through excellent organization governance and customer care. Reliance

Mutual fund wants a high performance environment that is geared at making investorshappy.RMF aims to do business lawfully and without stepping on other people. They want to beable to create portfolios that will ensure the liquidity of the investment of people in Indiaas well as abroad. Reliance Mutual Fund also wants to make sure that their shareholdersrealize reasonable profit, by deploying funds wisely. Taking appropriate risks to reach thecompany's potential is also one of Reliance MutualFund'sobjectives.SchemesTo make their packages more attractive, Reliance Mutual Fund created proposals called

The Equity/ Growth scheme, Debt/Income Scheme, and Sector Specific Scheme.21

i.


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Debt/Income Scheme, and Sector SpecificScheme.The Equity/ Growth scheme give medium to long term capital increase. The major part ofthe investment is on equities and they have fairly high risks. The scheme gives theinvestors varying options like, capital augmentation or dividend preference. The choices

are not deadlocked because if you want you maychangetheoptionslateron.Providing steady and regular income is one of the Debt/Income Scheme's primary goals.The Debt/Income scheme has in its portfolio government securities, corporate debenturesfixed income securities, and bonds.returns on Sector Specific Scheme are dependent on the performance of the industry atwhich your money is invested upon. Compared to diversified funds this is a lot more

risky and you will need to really give your time on observingthemarket.Although RMF is gaining good ground in the financial market, remember that they are arisk taking bunch. They give higher profit because they take a lot of risks. So, if you arefaint hearted, then Reliance Mutual Fund is not for you.GROWTH OF RELIANCE MONEY THROUGHRECOGNITION22

Growth through RecognitionReliance has merited a series of awards and recognitionsfor excellence for businesses and operations.

Corporate Ranking and Ratings:Reliance featured in the Fortune Global 500 list of WorldsLargest Corporations for the fourth consecutive year.Ranked 269th in 2007 having moved up 73 placesfrom the previous year.Featured as one of the worlds Top 200 companies in


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terms 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.23Reliance is ranked 182nd in the FT Global 500 (up fromprevious years 284th rank).PetroFed, an apex hydrocarbon industry association, conferred the PetroFed 2007 awardsin the categories of Refinery of the Year and Exploration & Production - Company ofthe Year.

Brand Reliance was conferred the Bronze Award at The Buzziest Brands Awards 2008,organized by agencyfaqs!Institute of Economic Studies conferred the UdyogRatna award in October 2007 for contributions to theindustry.Chemtech Foundation conferred the Hall of Fame inFebruary 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 ManufacturingDivisionThe 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.24

HEALTH:-Jamnagar Manufacturing Division was conferred the Golden Peacock Award forOccupational Health & Safety - 2007 by Institute of Directors.


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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 the BEL-IND Award for the bestscientific paper at the 58th 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 the

recognition 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 received the 2nd Prize for Longest Accident FreePeriod from the Honble Minister of Labour, State of Orissa.25

Hoshiarpur Manufacturing Division bagged the First Prize in Safety in Punjab,organized by Punjab Safety Council.Patalganga Manufacturing Division won the Gold Medal at CASHe (Change Agents forSafety, Health and Environment) Conference. It also won the III Prize in ProcessManagement category for Presentation on Safety through Design in chemical processindustry in Petrosafe 2007 Conference.

Kurkumbh Manufacturing Division won the Greentech Safety Award silver trophy foroutstanding achievement in safety management in chemical sector.Hazira Manufacturing Division received the TERI Corporate Environmental Award(Certificate of Appreciation) for PET recycling project.Nagothane Manufacturing Division received the Shrishti G-Cube Award for GoodGreen Governance from Minister for Commerce and Industry, on World Earth Day.


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Training and Development:-Jamnagar Refinery was adjudged the winner of theGolden Peacock National Training Award -2007.26

Patalganga Manufacturing Division won the ASTD (American Society for Training &Development) Excellence in Practice Award for innovative practice titled LearningFunctions role as Business partner: Empowering people with Knowledge to achieveBusiness Goals.Reliance won the CNBC TV-18 instituted Jobstreet.com

Jobseekers Employer of Choice Award.Energy Excellence:-Exploration & Production (E&P) Division won TheInfralineEnergyExcellenceAwards2007: Hydrocarbon Columbus Award for Excellence in Petroleum Exploration.Patalganga Manufacturing Division won the First Prize in Energy Conservation in State

of Maharashtra organized by Maharashtra Energy Development Agency (MEDA).Jamnagar Manufacturing Division won the Oil & Gas Conservation Award -2007 fromthe Centre for High Technology, Ministry of Power & Natural Gas for the excellentperformance in reduction/elimination of steam leaks in the plant.Jamnagar Manufacturing Division was the recipient of the Infraline Energy Award-2007 by Ministry of Power.27

Hazira Manufacturing Division won the Government of India Energy ConservationAward (2007) conferred by the Bureau of energy efficiency and Ministry of Power.Hazira Manufacturing Division was adjudged Excellent Energy Efficient Unit at


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Energy Summit - 2007 by CII.Vadodara Manufacturing Division received the CII award for Excellence in EnergyManagement - 2007 as energy efficient unit. This division also received the 2nd prize inNational Energy Conservation Award 2007 from Bureau of Energy efficiency,Ministry of Power, Government of India.

The Companys manufacturing divisions at Vadodara and Hazira were honoured withCII-National award for excellence in water management - 2007 as water efficient unit inWithin the fence category. Additionally, Hazira Manufacturing Division was honouredas water efficient unit Beyond the Fence category.Quality:-For the first time ever, globally, a petrochemical company bagged the Deming Prize forManagement Quality. The Quality Control Award for Operations Business Unit 2007was awarded to the Hazira28

Manufacturing Division for Outstanding Performanceby Practicing Total Quality Management.QUALTECH PRIZE 2007, which recognizes extraordinary results in improvement andinnovation, was won by Hazira Manufacturing Division for its Small Group ActivityProject.

Vadodara Manufacturing Divisions Polypropylene-IV (PP-IV) plant was conferred theSpheripol Process Operability Award-2006 for the highest operability rate with an onstream factor 98.97% by M/s. BASELL, Italy.Allahabad Manufacturing Division won the Excellent Category Award at NationalConvention of Quality Circle (NCQC) - 07.Six-Sigma:-Lean Six sigma project on Reducing retention time of caustic soda lye tankers atJamnagar won the 1st prize in the national level competition held by Indian StatisticalInstitute (ISI).

Patalganga Manufacturing Divisions Six Sigma Project on Improve Transfer Efficiencyfor Automatic winders in PFY won the 2nd Prize for Best design for Six Sigma Projectin International Six Sigma Competition organized by IQPC (International Quality andProductivity center).29


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Barabanki Manufacturing Division won the 3rd prize in All India Six Sigma case studycontest 2008 for the Case study on Reduction of waste of Plant 2 from 16% to 8%.Hoshiarpur Manufacturing Division won the 2nd prize in Six Sigma competition atNational Level organized by ISI and Quality Council of India (in manufacturingcategory), while Dhenkanal and Barabanki Manufacturing Divisions won the 3rd prize.Vadodara Manufacturing Divisions Six Sigma project won the 1st prize as the Best SixSigma project at National level by CII.Technology, R&D and Innovation:-

Vadodra Manufacturing Divisions R&D bagged an award from Indian Institute ofChemical Engineers for Excellence in Process / Product Development for the work onEco friendly Process for Acetonitrile Recovery.DSIR National Award for R&D Efforts in Industry (2007) was conferred on HaziraManufacturing Division for the Cyclehexane Recovery Project.Patalganga Manufacturing Divisions Project titled Augmentation of ETP and use ofbiogas in Fired heaters won the Best Innovative Project from CII.30

Reliance bagged the Innovation Award at Tech Converge 2007 for innovativedevelopments in short- cut fibres.Hazira Manufacturing Division won the Golden Peacock Innovation Award - 2007 forits Cyclohexane Recovery 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 figuring among the top 20 organizationsfostering excellence in IT team.The Skoch Challenger Award conferred for the best IT Head (managing the most ITenabled organization) of the Year 2007.


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Best IT Implementation Award, by PC Quest forKnowledge Management Systems portal (KMS).CIO Excellence Award for Chemical Industry Information Technology Forum for

exemplary Information Technology implementation amongst global chemical companies.CTO Forum Hall of Fame Award for the best CIOs inIndia for not only providing service to their31

PRODUCT S : RELIANCE MONEYThe products on offer from Reliance MutualFund fall into four main categories: equity,

debt,sector specific and ETF (Exchange Traded Fund).Each taps into a specific audienceprofile fulfilling their varying needs.Under the equity category, Reliance has118SUPERBRANDS sixteen schemes with Reliance Growth Fundand Reliance Vision32Fund as its flagship schemes.Reliance Equity Opportunities Fund is a schemewhichoperates in the multi-cap/multi- sectorsegment; Reliance Equity Fund is a long-shortfund,Reliance Quant Plus Fund is a quant fund.Reliance offers investments in banking,power,media, entertainment and pharmaceuticals;Reliance Tax Saver Fund and RelianceEquity-Linked Savings Fund Series 1 are tax saving schemes; an NRI-dedicated equityscheme istailored for non-resident Indians. RelianceRegular Savings Fund 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 debt fund, gilt funds, fixedmaturityplans and an interval fund.In the hybrid category, Reliance Monthlyincome Plan is apopular optionReliance understands that investments in mutual fundshare a function of knowledgedissemination and awareness of products amongst potential investors. In building itsownbase of assets under management it will necessarily have to carry the entire mutualfundindustry.Towards this end Reliance has launched a t wo- pronged initiative.In the firstpincer it has created aformidable network of 26,000 distributors including some ofthebiggest names in the banking sector.This whos who of the financial industry

comprises such giants asCitibank, Standard Chartered, HSBC,ICICI, AXIS, Bank ofBaroda, Central Bank of India, Allahabad Bank andfund houses such as JM, DSP MerrillLynch and Karvy in addition to a massive infrastructure of direct financial investment33officers. Thisprodigious effort is supplemented bythebrands captive network of 120 branch officesand 30 financial centres. In the second prong, Reliance has created a series ofinformationpacked presentations which help dispel misinformationGroup.This mega


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business house dominates this key area in the financial sector.Figures for March 2008show that it has emerged as the top Indian mutual fund with average assets undermanagement of Rs. 90,938 crore (US$ 22.73 billion) and an investor base of over 6.6million (Source:www.amfiindia.com).Reliances mutual fund schemes are managed by

RelianceCapitalAssetManagementLimited (RCAM), a subsidiary of Reliance CapitalLimited,which holds 93.37% of the paid-up capitalof RCAM.The company notchedup ahealthy growth ofRs. 16,354 crore (US$4.09billion)inassetsundermanagementin February2008 and helped propelthe total industry- wideAUM to Rs. 565,459crore(US$ 141.36 billion) (Source: indiainvestments.com). A sharp rise infixed maturityplans (FMPs)andcollection of Rs. 7000 crore (US$ 1.75 billion) through new fund offers(NFOs) created this surge. InAUMrankings, Reliance continues to be in thenumber onespot.Reliance was the first fund house to launch sector funds with flexibility to invest in a

range of 0% to 100% in either equity or debt instruments Mutual fund investments linkedto anATM/debit card are a Reliance innovationIndias first long-short fund comes fromReliance Mutual Fund As at 31st May 2008, more than 6.6 million people had invested34

in Reliance Mutual Fund;the investments comprised 16%of the countrys entire mutual fund asset base.

AchievementsIn two successive joint surveys by The Economic Times Brand Equity andACNielsen,Reliance was recognised as Indias Most Trusted Mutual Fund.Thecompanyalsowalked35

away with seven other scheme prizes five of them being outright winners in the Gulf2007 Lipper Awards.These included the Fund House of the Year by Lipper GCC as well

asICRA Online and the Most Improved FundHouse by Asia Asset Management.It alsoreceived the NDTV Business Leadership Award 2007 in the mutual fund category andrunners up recognition as the Best Fund House in theOutlook Money-NDTV ProfitAwards. In addition,the company received thecoveted CNBC Web18 Genius of the Webdistinction for the Best Mutual Fund Website inthe country. RCAM was awarded theIndia Onshore Fund House 2008 instituted by theAsian Investor magazine.The companyalso won the India Equities award in the 5-yearPerformance category.COMPARATIVE STUDY OF MUTUAL FUND


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Major competitior of Reliance MoneyCompany Profile of HDFCHDFC BANK is one of the leading Depository Participant36(DP) in the country with over 8 Lac demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep track ofyour securities and investments, over a period of time, without the hassle of handlingphysical documents that get mutilated or lost in transit.HDFC BANK is Depository particpant both with -National Securities DepositoriesLimited (NSDL) and Central Depository Services Limited (CDSL).Features & BenefitsAs opposed to the earlier form of dealing in physical certificates with delays intransaction, holding and trading in 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.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.37

Change of address, Signature, Dividend Mandate, registration of power of attorney,transmission etc. can be effected across companies held in demat form by a singleinstruction to the Depository Participant (DP).Secured & easy transaction processingHDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet basedtransaction) whereby account holder can submit delivery instructions electronicallythrough SPEED-e website (https://speed-e.nsdl.com). SPEED-e offers secured means of

transaction processing eliminating preparation of instruction slips and submission of thesame across the counter to the depository participant. The 'IDEAS' facility helps inviewing the current transactions and balances (holdings) of Demat account on Internet onreal time basis.Company Profile of ICICIICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along withstock trading and trading in derivatives in BSE and NSE, it also provides facility to investin IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE


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ICICIDirect offers 3 different online trading platforms to itscustomers1. Investment AccountAlong with stock trading and IPO investing in BSE and NSE, Wise Investment accountalso provide options to invest in Mutual Funds and Bonds online.

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Online Mutual funds investment allows investor to invest online in around 19 MutualFund companies. ICICI Direct offers various options while investing in Mutual Fundslike Purchase Mutual Fund, Redemption and switch between different schemes,Systematic Investment plans, Systematic withdrawal plan and transferring existingMutual Funds in to electronic mode. This account also provides facility toinves t

in Government of India Bonds and ICICI Bank TaxSavingBonds.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-oriented nature) are capable of clocking far superiorreturns their assured return counterparts like National Savings Certificate (NSC) andPublic Provident Fund (PPF). However investors must appreciate that the risk profile oftax-saving funds tends to be proportionately higher.

Reliance Tax Saver (ELSS) Fund (RTSF) is the latest entrant in the tax-saving fundssegment. Flagship diversified equity funds (Reliance Growth Fund and Reliance EquityFund) from Reliance Mutual Fund have emerged as top performers in their segmentacross time horizons. However investors should note that these funds are managedaggressively; also they have displayed an opportunistic streak by moving fluidly acrossmarket segments (large caps, mid caps) to clock superior growth. RTSF is likely to be asimilar (high risk - high return)39

investment proposition within the tax-saving fundssegment.SYSTEM INVESTMENT PLANSIP is a way of investing in Mutual Funds. It is designed for those investors who arewilling to invest regularly rather than making a lump sum investment. It is just like arecurring deposit with the post office or bank where we deposit some amount every


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month. The difference here is that the amount is invested in a mutual fund. Mutual Fundmakes investment according to their objective .They collect fund from investor andinvests it. Every fund has an objective and pattern of investing. There are various kinds ofmutual funds. There are equity funds and debt funds. Further equity funds can be dividedinto equity diversified mutual fund where funds are invested in shares of different

companies , sectoral funds where investment is made in shares of some particular sectorlike 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 the total asset is divided by the number ofoutstanding units. As the value of asset changes, nav also changes.The best way to invest in stock market is mutual fund through Systematic InvestmentPlan. But to get the benefit of an SIP, a long term horizon is must.40

OBJECTIVETo give a brief idea about the benefits available frommutual Fund investment.To give an idea of the types of schemes available.41

Explore the recent developments in the mutual funds inIndiaTo give an idea about the regulations of mutual funds.To analyze reliance mutual fund strategy against itscompetitor.RESEARCH METHODOLOGY42Research as a care full investigation or enquiry specially through search for a new facts inany branch of knowledge Research is an academic activity and such as the term shouldbe used in technical sense.The manipulation of things , concepts or symbols for the

purpose of generalizing to extend ,correct or verify knowledge ,whether that knowledgethrough objective.TYPES OF RESEARCHANALYTICAL RESERCHIn this project work, analytical research is used. In this project has to use facts orinformation .Already used available ,and analyze these to make a critical evolution of thematerial.METHODS OF DATA COLLECTION


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In this project work primary and secondary data sources ofdata has been used.43

Primary data: Primary data collect through observation ,or

through direct communication or doing experiments .Secondary data:Secondary data means already availablethrough books ,journals , magazines ,newspaper.TOOLS OF ANALYSISFor the proper analysis of data Quantitative Techniquesuch as percentage method was used.DATA ANALYSIS AND INTERPRETATIONQ.1 Which banking mutual fund do you prefer for mutual44

Fund ?Co mpany NamePersentages of respondents

Reliance Money25HDFC10ICICI150510152025

RelianceHDFCICICIINTERPRETATION: 50% of respondent have RelianceMoney , 30% of respondent says that other%.Q.2 Which banking mutual fund offer you goodinvestment plan?Company Name


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Percentage of respondentReliance2245

HDFC21

ICICI70510152025RELIANCEHDFCICICIINTERPRETATION:

44% respondent for Reliance,32 %forHdfc,14% for ICICIQ.3 Which banking mutul fund offer a lot of tax saving?Company NamePercentage of respondentReliance20HDFC1546


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ICICI15051015

20RelianceHDFCICICIINTERPRETATION:40% respondent for Reliance,30 %forHdfc,30% for ICICIQ.4 Which banking mutual fund offer you a large numberof product & services?Company NamePercentage of respondent47

Reliance

18HDFC16ICICI161515.51616.51717.5

18RelianceHDFCICICIINTERPRETATION:36% respondent for Reliance,32%forHdfc,32% for ICICIQ.5 Which banking mutual fund offer you a good e-mailfacility ?


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Company NamePercentage of respondentReliance22HDFC

1548

ICICI130510152025RelianceHDFCICICI

INTERPRETATION:44% respondent for Reliance,30%forHdfc,26% for ICICIRepresent by pie chart49Reliance41%HDFC30%ICICI29%

OBSERVATION50% of respondent have Reliance Money , 30% of

respondent says that other%.44% respondent for Reliance,32 %forHdfc,14% for


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ICICI.50

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

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

44% respondent for Reliance,30%forHdfc,26% forICICI.FINDINGS AND SUGGESTIONIn Equity Schemes we have taken Reliance Vison Fundand Reliance 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 ManagerFund and Reliance Liquidty Fund .In it boths schemes are51

open ended but reliance money manager is more beneficial

for reliance mutual fund .In sector specific scheme we have taken Reliance mediaand entertainment fund and Reliance Pharma fund schemeboth 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.SUGGESTIONReliance Money have to add some extra features in it

with aggressive marketing promotional strategy.Advertisement on television is the main source ofattraction so the company must advertise its productsheavily.Product must be improved .52


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There should be provision of complain suggestionboxes at each branch.CONCLUSIONMutual 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 .53

At last all con be concluded by that Reliance Money is still growing industry in India andis still exploring its potential and prospects in here.Limitations54

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 of information sources for the analysis part.BIBLIOGRAPHYWebsites:www.reliancemoney.comwww.hdfc.comwww.icicidirect.com

Referencebooks:FINANCIAL INSTITUTIONS AND MARKETS -55


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L.M.BHOLEINVESTMENT MANAGEMENT - V.K.BHALLAResearch Methodology - KothariQUESTIONNAIRQ.1 Which banking mutual fund do you prefer for mutual

Fund ?Reliance MoneyHDFCICICIQ.2 Which banking mutual fund offer you goodinvestment plan?56Reliance MoneyHDFCICICIQ.3 Which banking mutul fund offer a lot of tax saving?

Reliance MoneyHDFCICICIQ.4 Which banking mutual fund offer you a large numberof product & services?Reliance MoneyHDFCICICIQ.5 Which banking mutual fund offer you a good e-mailfacility ?Reliance MoneyHDFCICICI57

Documents

Summer Tranning Report