UNIVERSITY OF MUMBAI

PROJECT ON
NIFTY FIFTY
SUBMITTED BY
DEEP C BHALODIA
T. Y. B. COM. (FINANCIAL MARKETS)
SEMESTER VI
ACADEMIC YEAR 2013-14
PROJECT GUIDE
RANJEET KAUR PATEL
VIVEK EDUCATION SOCIETYS
VIVEK COLLEGE OF COMMERCE
SIDDHARTH NAGAR GOREGAON (WEST)
MUMBAI - 400104.

CERTIFICATE

I, Ranjeet Kaur Patel, hereby certify that Deep C Bhalodia of Third Year
Bachelor of Commerce (Financial Markets), Vivek College of Commerce, Has
successfully completed project on Establishment And Growth of NSE in
Semester VI of the academic year 2013-14

Internal Examiner

External Examiner

Co-ordinator

Principal

DECLARATION
I, Deep C Bhalodia, student of Bachelor of Commerce (Financial Markets)Semester VI , Vivek
College of Commerce, hereby declare that I have completed the project on Establishment and
Growth of NSE in the academic year 2013-14.

The information submitted is true and original to the best of my knowledge.

Signature

Date

Deep C Bhalodia

Acknowledgement
To list who all helped me is difficult because they are so numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic channel and fresh dimension in the
completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this project.
I would like to thank my principal, Dr. Nandita Roy, for providing the necessary facilities
required for completion of this project.
I take this opportunity to thank our co-ordinator Mrs. Debjani Chakraborti for his moral support
and guidance.
I would also like to express my sincere gratitude towards my project guide Ranjeet Kaur Patel
whose guidance and care made the project successful.

I would like to thank my college library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project, especially my parents and my peers who supported me throughout my
project.

Deep C Bhalodia

EXECUTIVE

SUMMARY

Now a day, there is a tough competition in financial avenues due to increase in the
investment products. People can get many investment options to invest their savings. Selecting
one from the many available options considering many associated factors is a very complex
process.
Reliance Mutual Fund is one of India's largest brokerage and securities distribution
house in India. It is new to Securities market but still among the top 5 performing company
leaving far behind the oldest companies. It is considered to be one of the leading investment
broking houses catering to the needs of both institutional and non-institutional investor
categories with presence all over the country through franchisees and co-coordinators.
In this project I studied the schemes of Reliance Mutual fund and their returns in
various period of time which helped me in knowing how the various schemes are performing
and the reasons behind it. I also came to know the risk associated with the various schemes and

how risk and returns are related. Hence my topic of study is Comparative study on
performance of Equity Schemes of Reliance Mutual Fund.

Design of the Study

Need for the Study:
The study will help the organization in knowing how the Equity schemes of the companys are
performing and which schemes are preferred most by the investors.

Objectives of the Study

To know the Performance of the preferred equity of Reliance Mutual Fund.

To understand the concept of Mutual Fund its working, mechanism and types traded in
India.

To compare the risk and return associated with the Equity Schemes of Reliance Mutual
Fund.

To know which scheme of Equity of Reliance Mutual Fund is most preferred by the
investors and what factors they consider while investing in reliance mutual fund.

To evaluate the performance Sharpes and Treynors index are used

Scope of the study

For the study Equity schemes of Reliance Mutual Fund were scanned whose
corpus value is more than 500 crores to compare their performance by calculating risk and
return associated with these schemes. Also a survey was conducted on Reliance Investors to
know the most preferred Equity scheme by the Investors and what factors make them Invest
in Reliance mutual Fund
To evaluate the performance of the scheme and funds I have applied sharps index &
Treynors index .

Limitations of the study:

The data collection was strictly confined to secondary sources. Primary data was
associated with only the survey conducted on the investors.
Collecting historical NAV is very difficult.

Selection of schemes for study is very difficult because lot of Varieties in equity Schemes

Techniques of analysis:
1.

Return:
Return on a typical investment consists of two components. The basic is the periodic cash

receipts (or income) on the investment, either in the form of interest or dividends. The second
component is the change in the price of the assets-commonly called the capital gain or loss.
This element of return is the difference between the purchase price and the price at which the
assets can be or is sold; therefore, it can be again or a loss.
The return has been calculated as under:

NAVt NAVt-1
Portfolio return: Rit =--------------------------------NAV t-1
Where Rit is the difference between Net Asset Values for two consecutive days dividend by the
NAV of the preceding day.
M.indt M.indt-1
Market return: Rmt =-------------------------------M.indt-1
Where Rmt is the difference between market indices of two consecutive days dividend
by the market index for the preceding day

2.

Risk :
Risk is neither good nor bad. Risk in holding securities is generally associated with the

possibility that realized returns will be less than expected returns. The difference between the
required rate of returns on mutual fund investment and the risk free return is the risk premium.
Risk can be measured in terms of Beta & standard deviations.

Standard deviation
It is used to measure the variation in individual returns from the average expected returns

over a certain period. Standard deviation is used in the concept of risk of a portfolio of
investments. Higher standard deviation means a greater fluctuation in expected return.

Standard deviation (SD) =\/ var

Where Var = variance

Var= ( p (ri-E(r)) 2

Beta :
Beta measures the systematic risk and shows how prices of securities respond to the

market forces. It is calculated by relating the return on a security with return for the market. By
convention, market will have beta 1.0.Mutual fund is said to be volatile, more volatile or less
volatile. If beta is grater than 1 the stock is said to be riskier than market. If beta is less than
1,the indication is that stock is less risky in comparison to market. If beta is zero then the risk is
the same as that of the market. Negative beta is rare.

nxy-(x)( y)

n(x2-((x) 2
Where n= number of days
X =rolling returns of the NSE index
Y= rolling returns of the schemes
3.

Sharpe index
Sharpe index measures risk premium of a portfolio, relative to the total amount of risk in

the portfolio. Sharpe index summarizes the risk and return of a portfolio in a single measure
that categorizes the performance of funds on the risk- adjusted basis. The larger the Sharpes
index the portfolio over performs the market and vise versa.

Where
st = Sharpes index
Rp= portfolio return
Rf= Risk free rate of return (7.59%)
SD= Standard Deviation of the port folio

St=

RP-Rf
SD

4.

Treynors Index
Treynors model is on the concept of the characteristics straight line. The characteristics

line has drawn a relationship between the market return and a specific portfolio without taking
into consideration any direct adjustment for risk. It is also known as reward to volatility ratio
and is defined as:
The formula for Treynors Index is:

Portfolio avg return (Rp) risk-free rate of interest (Rf)

Treynor index (Tn) = --------------------------------------------------------------------Beta coefficient of portfolio (Bp)
Rp -Rf
Tn = ------------------------Bp

It measures portfolio risk in terms of beta, which is weighted average of individual

security beta. The ratio is investors, for who the fund represents only a fraction of their total
assets. The higher the ratio better is the performance.

INTRODUCTION
An investment means employment of funds on assets (i.e. securities or mutual funds or
any of the investment avenues) with the aim of earning of income as well as capital
appreciation. There are mainly two attributes while investing to any of the means, i.e. time and
risk. There are mainly four objectives, which the investments activities will carry on those are :

Return

Risk

Liquidity

Hedge against inflation

Safety
There are many alternatives which investment avenues are open to the investors to suit

their needs and nature .The selection of investment alternatives are depends up on the required
level of return and the risk tolerance level. These alternatives range from financial securities to
traditional non-securities investment.
Following are the various investment alternatives.
Negotiable and fixed income securities

Equity shares

Preference share

Debentures

10

Bonds

Indira vikas patra &Kisan Vikas patra

Government securities

Money market securities (i.e. treasury bill, commercial paper, certificate of

Deposit etc)

Non-negotiable securities

Bank deposit

Post office deposit

NBFC deposit

Tax saving schemes

Public provident fund scheme

National saving scheme

Life insurance

Mutual funds

Real estate

11

Securities
Companies raise funds to finance their projects through various methods. The promoters
can bring their own money or barrow from the financial institutions or mobilizes capital by
issuing securities. The funds `

may be raised through issue of fresh share at per or

premium. Preference shares debenture or global depository receipts. These are mainly two
markets which any company can raise their funds; those are primary market and secondary
market .the companies raise funds for the following purposes:
To promote a new company
To expand an existing company
To diversify the production
To meet the regular working capital requirement
To capitalize the reserves.
NEW ISSUE MARKET (PRIMARY MARKET)
Stock available for the first time is offered through new issue market. The issuer may be a
new company or an existing company. These issues may be of new type or the secure used in
the past. In the new market the issuer can be consider as a manufacturers. The issuing house,
investing banker and broker act as the channel of distributing for new issue. They take the
responsibility of selling the stock to the public

The primary market provides a direct link between the prospective investors and

12

Company. The main survives function of the primary market are:

Origination

Underwriting

Distribution
The main objectives of NSE are as follows.

To establish the nation wide trading facility for Equities, Debt instruments and hybrids.

To ensure equal access to investors all over the country through appropriate communication network.

To enable shorter settlement cycle and book entry settlement system.

INTRODUCTION TO THE MUTUAL FUND

13

Mutual Funds are dynamic financial institutions, which play a crucial role in an economy my
mobilizing a link between savings and the capital market. Therefore the activities of Mutual
Funds have both short and long term impact on the savings and capital markets and the national
economy. Mutual Funds thus assist the process of financial deepening and intermediation. They
mobilize Funds in the savings market and act as complementary to banking, at the same time
they also compete with banks and other financial institutions. In the process stock market
activities are also significantly influenced by Mutual Funds. The scope and efficiency of Mutual
Funds are influenced by overall economic fundamentals, the interrelationship between the
financial and real sector, the nature of development of the savings and capital markets, market
structure, institutional arrangements and overall policy regime.

MEANING
A MUTUAL FUND IS A COMMON POOL OF MONEY INTO WHICH THE INVESTORS
PLACE THEIR CONTRIBUTIONS THAT ARE TO BE INVESTED IN ACCORDANCE
WITH A STATED OBJECTIVE.
Mutual fund is a mechanism for pooling the resources by issuing units to the investors
And investing funds in securities in accordance with objectives as disclosed in offer document
Investments in securities are spread across a wide cross-section of industries and sectors and thus
the risk is reduced. Diversification reduces the risk because all stocks may not move in the same
direction in the same proportion at the same time. Mutual fund issues units to the investors in
accordance with quantum of money invested by them. Investors of mutual funds are known as
unit holders.

14

The investors in proportion to their investments share the profits or losses. The mutual funds
normally come out with a number of schemes with different investment objectives, which are
launches from time to time. A mutual fund is required to be registered with Securities and
Exchange Board of India (SEBI), which regulates securities markets before it can collect funds
from the public.

About

Reliance

Capital

Asset

Management

Ltd.

Reliance Capital Asset Management Limited (RCAM), a company registered under the
Companies Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund.
Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital
Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management
Limited

is

held

by

Reliance

Capital

Limited.

Reliance Capital Asset Management Limited was approved as the Asset Management
Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30,
1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with
RCAM dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual
Funds) Regulations, 1996. Pursuant to this IMA, RCAM is authorised to act as Investment
Manager of Reliance Mutual Fund. The networth of the Asset Management Company including
preference shares as on March 31, 2005 is Rs.30.13 crores. Reliance Mutual Fund has launched
twenty five Schemes till date, namely: Reliance Vision Fund (September 1995), Reliance Growth
Fund (September 1995) Reliance Income Fund (December 1997), Reliance Liquid Fund (March
1998), Reliance Medium Term Fund (August 2000), Reliance Short Term Fund (December
2002), Reliance Fixed Term Scheme (March 2003), Reliance Banking Fund (May 2003),

15

Reliance Gilt Securities Fund (July 2003), Reliance Monthly Income Plan (December 2003),
Reliance Diversified Power Sector Fund (March 2004) Reliance Pharma Fund ( May 2004),
Reliance Floating Rate Fund (August 2004), Reliance Media & Entertainment Fund (September
2004), Reliance NRI Equity Fund (October 2004), Reliance NRI Income Fund (October 2004),
Reliance Index Fund (January 2005), Reliance Equity Opportunities Fund (February 2005),
Reliance Fixed Maturity Fund - Series I (March 2005), Reliance Fixed Maturity Fund - Series II
(April 2005), Reliance Regular Saving Fund (May 2005), Reliance Liquidity Fund (June 2005),
Reliance Tax Saver (ELSS) Fund (July 2005), Reliance Fixed Tenor Fund (November 2005) and
Reliance

Equity

Fund

(Feb

2006).

RCAM has been registered as a portfolio manager vide SEBI Registration No.
INP000000423 and renewed effective 1st August, 2003.RCAM has commenced these activities.
It has been ensured that key personnel of the AMC, the systems, back office, bank and securities
accounts are segregated activity wise and there exists systems to prohibit access to inside
information of various activities. As per SEBI Regulations, it will further ensure that AMC meets
the

capital

adequacy

requirements,

if

any,

separately

for

each

such

activity.

TRUSTEES: Trustees are like internal regulators in a mutual fund, and their job is to protect the
interest of unitholders. Sponsors appoint trustees. Trustees appoint the AMC, which,
subsequently seek their approval for the work it does, and reports periodically to them on how
the business is being run. Trustees float and market schemes, and secure necessary approvals.
They check if the AMCs investments are within defined limits and whether the funds assets are
protected. Trustees can be held accountable for financial irregularities in the mutual fund.

16

CUSTODIAN:

A custodian handles the investment back office of a mutual fund. Its

responsibilities include receipt and delivery of securities, collection of income, distribution of

dividends, and segregation of assets between schemes. The sponsor of a mutual fund mutual fund
cannot act as a custodian to the fund. This condition, formulated in the interest of investors,
ensures that the assets of mutual fund are not in the hands of its sponsor.
REGISTRAR : Registrars, also known as transfer agents, handle all investor-related services.
This includes issuing and redeeming units, sending fact sheet and annual reports. Some fund
houses handle such functions in-house.

STRUCTURE OF MUTUAL FUND IN INDIA:

Trustees
Operations

SEBI

Sponsor

AMC
Fund Manager

Market / Sales

Mutual Fund
Schemes
Investor

17

GROWTH OF MUTUAL FUNDS:

The Indian mutual fund as passed through three phases. The first phase was between 1964 and
1987 and only player was the trust of India, which had a total asset of Rs. 6700/- crores and the
end of 1988.the second phase is between 1987 and 1993 during which period 8 funds were
established (6 by banks and one each by LIC and GIC). The total asset under management had
grown to Rs.61, 028/- crores at and of 1994 and the numbers of schemes were 167.
The third began with the entry of private and foreign sectors in the mutual fund industry in 1993.
Kothari pioneer mutual fund was the first fund to be established by the private sector in
association with a foreign fund.
As at the end of financial year 2000 (31 march) 32 funds were functioning with Rs. 1,13,005
crores as total asset under management. As on august end 2000, there were 33 with 391 schemes
and assets under management with Rs. 1,02,849 crores.
The securities and exchange board of India (SEBI) came out with comprehensive regulation in
1993, which defined the structure of mutual fund and asset management companies for the first
time. Currently there are 34 of mutual fund organizations in India managing over Rs.1, 02,000/crore

First investors pool their money in Mutual fund through franchisee or agents or himself in
particular scheme.

Fund manager collect that money and diversify that money in different securities.

Then that securities generate return.

That returns will passed back to the investors.

18

THE DIFFERENT TYPES OF MUTUAL FUNDS:

Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.
Open-ended Fund/ Scheme
An open-ended fund or scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV) related prices, which are declared on a daily basis.
The key feature of open-end schemes is liquidity.
Close-ended Fund/ Scheme
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open
for subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that
at least one of the two exit routes is provided to the investor i.e. either repurchase facility or
through listing on stock exchanges. These mutual funds schemes disclose NAV generally on
weekly basis.

19

Schemes according to Investment Objective:

A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended schemes
as described earlier. Such schemes may be classified mainly as follows:
Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such
schemes normally invest a major part of their corpus in equities. Such funds have comparatively
high risks. These schemes provide different options to the investors like dividend option, capital
appreciation, etc. and the investors may choose an option depending on their preferences. The
investors must indicate the option in the application form. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for investors having a
long-term outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Government
securities and money market instruments. Such funds are less risky compared to equity schemes.
These funds are not affected because of fluctuations in equity markets. However, opportunities of
capital appreciation are also limited in such funds. The NAVs of such funds are affected because
of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely
to increase in the short run and vice versa. However, long-term investors may not bother about
these fluctuations.

20

Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such schemes invest
both in equities and fixed income securities in the proportion indicated in their offer documents.
These are appropriate for investors looking for moderate growth. They generally invest 40-60%
in equity and debt instruments. These funds are also affected because of fluctuations in share
prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared
to pure equity funds.
Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity, preservation of
capital and moderate income. These schemes invest exclusively in safer short-term instruments
such as treasury bills, certificates of deposit, commercial paper and inter-bank call money,
government securities, etc. Returns on these schemes fluctuate much less compared to other
funds. These funds are appropriate for corporate and individual investors as a means to park their
surplus funds for short periods.
Gilt Fund
These funds invest exclusively in government securities. Government securities have no default
risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic
factor as is the case with income or debt oriented schemes.
Index Funds

21

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P
NSE 50 index (Nifty), etc These schemes invest in the securities in the same weight age
comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or
fall in the index, though not exactly by the same percentage due to some factors known as
"tracking error" in technical terms. Necessary disclosures in this regard are made in the offer
document of the mutual fund scheme. There are also exchange traded index funds launched by
the mutual funds, which are traded on the stock exchanges.
Sector specific funds/schemes
These are the funds/schemes, which invest in the securities of only those sectors or industries as
specified in the offer documents. E.g. Pharmaceuticals, Software, Fast Moving Consumer Goods
(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of
the respective sectors/industries. While these funds may give higher returns, they are more risky
compared to diversified funds. Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act,
1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity
Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax
benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth
opportunities and risks associated are like any equity-oriented scheme.
Load or no-load Fund

22

A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each time one
buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund
for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as well
as exit load charged is 1%, then the investors who buy would be required to pay Rs.10.10 and
those who offer their units for repurchase to the mutual fund will get only Rs.9.90 per unit. The
investors should take the loads into consideration while making investment as these affect their
yields/returns. However, the investors should also consider the performance track record and
service standards of the mutual fund, which are more important. Efficient funds may give higher
returns in spite of loads. A no-load fund is one that does not charge for entry or exit. It means the
investors can enter the fund/scheme at NAV and no additional charges are payable on purchase
or sale of units.

Advantages of Mutual Fund;

Professional Management: Qualified professionals manage your money but they are not
alone. They have a research team that continuously analyses the performance and
prospects of companies. They also select suitable investment to achieve the objective of
the scheme, so you see that it is a continues process that takes time and expertise that will

23

add value to your investment. These fund managers are in a better position to manage
investments and get a higher return.

Diversification: the Clich, Dont put all your eggs in one basket. Really applies to the
concept of intelligent investing. Diversification lowers the risk of loss by spreading your
money across various industries it is a rare occasion when all stocks decline at the same
time and in the same proportion.

Choice of schemes: Mutual Fund offers a variety of schemes that will suit individuals
needs over a lifetime. When you enter a new stage in your life, all you need to do is sit
down with your investments advisers who will help you to re-arrange your portfolio to
suit your altered life style.

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

Tax benefits: Investments held by investors for a period of 12 months or more qualify for
capital gains and will be taxed accordingly. These investments also get the benefit of
indexation. And also the dividend received by an investor is tax free in the hands of
investors.

Liquidity: with open-end funds, we can redeem all or part of investment any time when
we wish and receive the current value of the shares or the NAV related price. Funds are

24

more liquid than most investments in shares, deposits and bonds and the process is
standardize, making it quick and efficient so that we can get your cash in hand as soon as
possible.

Rupees Cost Averaging: Through using this concept of investing the same amount
regularly, mutual funds give you the advantage of getting the average unit price over the
long-term. This reduces your risk and also allows you to discipline yourself by actually
investing every month or quarterly and not making sporadic investments.

The Transparency of Mutual Funds: The performance of a mutual fund is reviewed by

various publications and rating agencies, making it easy for investors to compare one to
the other. Once we became part of mutual fund scheme, we were provided with regular
updates, for example daily NAVs, as well as information on the specific investments
made and the fund managers strategy and out look of the scheme.

Regulations of Mutual Funds: All mutual funds are required to register with SEBI. They
are obliged to follow strict regulations designed to protect investors. All operations are
also regularly monitored by the SEBI.

Disadvantages Of Mutual Fund

Mutual funds have their drawbacks and may not be for everyone:

25

No Guarantees: No investment is risk free. If the entire stock market declines in value,
the value of mutual fund shares will go down as well, no matter how balanced the
portfolio. Investors encounter fewer risks when they invest in mutual funds than when
they buy and sell stocks on their own. However, anyone who invests through a mutual
fund runs the risk of losing money.

Fees and commissions: All funds charge administrative fees to cover their day-to-day
expenses. Some funds also charge sales commissions or "loads" to compensate brokers,
financial consultants, or financial planners. Even if you don't use a broker or other
financial adviser, you will pay a sales commission if you buy shares in a Load Fund.

Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20
to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales,
you will pay taxes on the income you receive, even if you reinvest the money you made.

26

CONTENTS
- Organization Profile
- Sampling
- Date Collection Methods
- Measuring Tools

RELIANCE MONEY
The

Mutual

About

Fund
Reliance

Mutual

Fund

Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882
with Reliance Capital Limited (RCL), as the Settlor/Sponsor and Reliance Capital Trustee Co.
Limited

(RCTCL),

as

the

Trustee.

RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration
number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been
changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBI's letter no.

27

IMD/PSP/4958/2004 date 11th. March 2004. Reliance Mutual Fund was formed to launch
various schemes under which units are issued to the Public with a view to contribute to the
capital market and to provide investors the opportunities to make investments in diversified
securities.

The main objectives of the Trust are :

To carry on the activity of a Mutual Fund as may be permitted at law and formulate and
devise various collective Schemes of savings and investments for people in India and
abroad and also ensure liquidity of investments for the Unit holders;

To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on
their savings

To take such steps as may be necessary from time to time to realize the effects without
any limitation

Vision, Mission & Market Strategy

Vision statement
Empowering everyone to live their dream
Mission statementTo offer unparalleled value by providing the customer transparent, convenient and
effective anytime-anywhere integrated financial transaction capability

28

Marketing strategy- to provide

Simple, easy-to-understand, safe and secure trading platform/software
Uncomplicated, easy-to-understand brokerage/trading cost structure without any
riders
Easy access to the financial market through convenient modes of distribution
Sound, genuine, unbiased advise individual investments.
Detail Study about the company
The easiest, fastest and most convenient way to carry out your financial transactions is now at
your fingertips! Reliance Money offers you the widest range of asset classes to trade in: Equity,
Derivatives, Commodities and Forex. Also invest on-line in Mutual Funds, IPOs and Insurance
products (Life & General). All this through one single window. Reliance Money is a state-of-theart financial transaction platform, which enables you to conduct your financial transactions in
cost effective, convenient and secure manner. Reliance Money has introduced several never .
before features and thereby changed the way you will invest:
1. Flat Fees instead of Brokerage - Put your money into investments, not into brokerage. Pay a
flat fee of Rs. 500/- and transact as much you want upto Rs. 1crore or for 2 months (whichever is
earlier). It.s never happened before anywhere in the world!
2. Trading Kiosks - No matter if you don.t have access to a computer or the Internet. You will
find exclusive Reliance Money Trading Kiosks at convenient locations throughout your city.
These internet-enabled Kiosks bring the market to you, wherever you are.
3. Security Token - The Reliance Money security token is so hi-tech, it almost defies belief. This
small, portable plastic device flashes a unique number that changes every 36 seconds, ensuring
that the number used for an earlier transaction is discarded. This number works over and above

29

your normal login and password, serving as a third level of protection that guarantees your
account total safety.
4. Call N Trade - You don.t have to access your computer to trade or invest.With our Call N
Trade facility, you can place orders over the phone.
5. Multiple Offerings - Along with equity, you can also trade / invest in Commodities (gold,
silver, base metals and other agri commodities to name a few), Derivatives, Forex (RBI allows
you to remit US$25,000 per calendar year), Mutual Funds, IPOs and Insurance products (Life &
General).
6. Widest Network: Reliance Money has a network of branches all over the country with
associates who will assist you with your financial investment requirements.
7. Other value - added Services: -Reliance Money provides:
Research, market views and stock views from independent experts, with an enviable
track record
LIVE news from Dow Jones, Capital Market and Commodities Control
CEOs. / experts. views on economy and the financial market
Personal Finance planning tools that help you plan your investments, retirement, tax etc.
Portfolio Tracker that will help you track your investments from one single
screen
Risk Analyzer to analyz e your risk profile and get a suitable investment portfolio plan
using our Asset Allocator.
Knowledge Centre will help you understand investing and trading basics and also delve
into advanced concepts like trading strategies
Market Watch, a unique tool that will help you track your favorite companies. Just

30

configure it and get real time quotes, news, views, result etc. Our technology allows you to
detach it from the main screen and place it on your desktop.
Products and Services
A product for every need: Reliance Money is the most comprehensive platform which allows you
to invest in Shares, Mutual Funds, Derivatives (Futures & Options), Commodities, Forex, IPOs,
Insurance and other financial products. Simply put, we offer you a product for almost every
investment need.
Investing in Mutual Funds:
Reliance Money brings you a unique, hassle-free and paperless way to invest in Mutual Funds.
You can now invest on-line in Mutual Funds through Reliance Money No more filling
application forms manually or any going through other paperwork. You need no signatures or
proof of identity for investing. Once you place a request for investing in a particular fund, there
are no manual processes involved. Your bank funds are automatically debited or credited while
simultaneously crediting or debiting your unit holdings.You also get control over your
investments with on-line order confirmations and order status tracking. You get to know the
performance of your investments through online updation of your portfolio with current NAVs.
Reliance Money offers you various options while investing in Mutual Funds:
Purchase: Buying of Mutual Fund units is very convenient without the hassles of filling in the
applications manually. Redemption: As with Purchases, redemptions too can be done online.
Switch: You can shift money from one scheme to another in the same mutual fund house, with
the click of a button.

31

Reliance Mutual Funds

Equity Schemes :
Reliance Equity Fund :
(An open-ended diversified Equity Scheme.) The primary investment objective of the scheme is
to seek to generate capital appreciation & provide long-term growth opportunities by investing in
a portfolio constituted of equity & equity related securities of top 100 companies by market
capitalization & of companies which are available in the derivatives segment from time to time
and the secondary objective is to generate consistent returns by investing in debt and money
market securities.
Reliance Tax Saver (ELSS) Fund :
(An Open-ended Equity Linked Savings Scheme.) The primary objective of the scheme is to
generate long-term capital appreciation from a portfolio that is invested predominantly in equity
and equity related instruments.
Reliance Equity Opportunities Fund :
(An Open-Ended Diversified Equity Scheme.) The primary investment objective of the scheme is
to seek to generate capital appreciation & provide long-term growth opportunities by investing in
a portfolio constituted of equity securities &equity related securities and the secondary objective
is to generate consistent returns by investing in debt and money market securities.

Reliance Vision Fund :

32

(An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to
achieve long term growth of capital by investment in equity and equity related securities through
a research based investment approach.
Reliance Growth Fund :
(An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to
achieve long term growth of capital by investment in equity and equity related securities through
a research based investment approach.
Reliance Index Fund :
(An Open Ended Index Linked Scheme.) The Investment Objective under the Nifty Plan is to
replicate the composition of the Nifty, with a view to endeavor to generate returns, which could
approximately be the same as that of Nifty. The Investment Objective under the Sensex plan is to
replicate the composition of the Sensex, with a view to endeavor to generate returns, which could
approximately be the same as that of Sensex.

Reliance NRI Equity Fund :

(An open-ended Diversified Equity Scheme.) The Primary investment objective of the scheme is
to generate optimal returns by investing in equity or equity related instruments primarily drawn
from the Companies in the BSE 200 Index.
Debt/Income Schemes
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate debentures,
Government securities and money market instruments. Such funds are less risky compared
to equity schemes. These funds are not affected because of fluctuations in equity markets.

33

However, opportunities of capital appreciation are also limited in such funds. The NAVs of
such funds are affected because of change in interest rates in the country. If the interest rates
fall, NAVs of such funds are likely to increase in the short run and vice versa. However,
long term investors may not bother about these fluctuations.
Debt Schemes :
Reliance Monthly Income Plan :
(An Open Ended Fund. Monthly Income is not assured & is subject to the availability of
distributable surplus ) The Primary investment objective of the Scheme is to generate regular
income in order to make regular dividend payments to unitholders and the secondary objective is
growth of capital.Primarily the investment shall be made in debt and money market securities
(i.e. 80%) with a small exposure (i.e. upto 20%) in equity.

Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt Plan:
Open-ended Government Securities Scheme) The primary objective of the Scheme is to generate
Optimal credit risk-free returns by investing in a portfolio of securities issued and guaranteed by
the central Government and State Government
Reliance Income Fund :
(An Open-ended Income Scheme) The primary objective of the scheme is to generate optimal
returns consistent with moderate levels of risk. This income may be complemented by capital
appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt &
Money Instruments.

34

Reliance Medium Term Fund :

(An Open End Income Scheme with no assured returns.) The primary investment objective of the
Scheme is to generate regular income in order to make regular dividend payments to unitholders
and the secondary objective is growth of capital
Reliance Short Term Fund :
(An Open End Income Scheme) The primary investment objective of the scheme is to generate
stable returns for investors with a short investment horizon by investing in Fixed Income
Securities of short term maturity.
Reliance Liquid Fund :
(Open-ended Liquid Scheme). The primary investment objective of the Scheme is to generate
optimal returns consistent with moderate levels of risk and high liquidity. Accordingly,
investments shall predominantly be made in Debt and Money Market Instruments.

Reliance Fixed Term Scheme :

(Close-ended Income Scheme) The primary objective of the Scheme is to seek to achieve regular
returns / growth of capital by investing in a portfolio of fixed income securities normally
maturing in line with the time profile of the plan with the objective of limiting interest rate
volatility.
Reliance Floating Rate Fund :
(An Open End Income Scheme) The primary objective of the scheme is to generate regular
income through investment in a portfolio comprising substantially of Floating Rate Debt
Securities (including floating rate securitized debt and Money Market Instruments and Fixed

35

Rate Debt Instruments swapped for floating rate returns). The scheme shall also invest in Fixed
rate debt Securities (including fixed rate securitised debt, Money Market Instruments and
Floating Rate Debt Instruments swapped for fixed returns
Reliance NRI Income Fund :
(An Open-ended Income scheme) The primary investment objective of the Scheme is to generate
optimal returns consistent with moderate levels of risks. This income may be complimented by
capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in
debt Instruments.
Reliance Fixed Maturity Fund - Series I :
(A Close Ended Income Scheme) The primary investment objective of the Scheme is to seek to
achieve regular returns / growth of capital by investing in a portfolio of fixed income securities
normally maturing in line with the time profile of the Plan with the objective of limiting interest
rate volatility.

Reliance Fixed Maturity Fund - Series II :

(A closed ended Income Scheme) The primary investment objective of the Scheme is to seek to
achieve growth of capital by investing in a portfolio of fixed income securities normally
maturing in line with the time profile of the respective plans.
Reliance Liquidity Fund :
(An Open - ended Liquid Scheme) The investment objective of the Scheme is to generate
optimal returns consistent with moderate levels of risk and high liquidity. Accordingly,
investments shall predominantly be made in Debt and Money Market Instruments.

36

Debt Option : The primary investment objective of this plan is to generate optimal returns
consistent with moderate level of risk. This income may be complemented by capital
appreciation of the portfolio. Accordingly investments shall predominantly be made in Debt &
Money Market Instruments.
Equity Option : The primary investment objective is to seek capital appreciation and or
consistent returns by actively investing in equity / equity related securities.
Sector Specific Schemes
These are the funds/schemes which invest in the securities of only those sectors or industries as
specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods
(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance
of the respective sectors/industries. While these funds may give higher returns, they are
more risky compared to diversified funds. Investors need to keep a watch on the performance
of those sectors/industries and must exit at an appropriate time.

Sector Specific Schemes

Sector Funds are specialty funds that invest in stocks falling into a certain sector of the economy.
Here the portfolio is dispersed or spread across the stocks in that particular sector. This type of
scheme is ideal for investors who have already made up their mind to confine risk and return to a
particular sector
Reliance Banking Fund

37

Reliance Mutual Fund has an Open-Ended Banking Sector Scheme which has the primary
investment objective to generate continuous returns by actively investing in equity / equity
related or fixed income securities of banks.
Reliance Diversified Power Sector Fund
Reliance Diversified Power Sector Scheme is an Open-ended Power Sector Scheme. The primary
investment objective of the Scheme is to seek to generate consistent returns by actively investing
in equity / equity related or fixed income securities of Power and other associated companies.
Reliance Pharma Fund
Reliance Pharma Fund is an Open-ended Pharma Sector Scheme. The primary investment
objective of the Scheme is to generate consistent returns by investing in equity / equity related or
fixed income securities of Pharma and other associated companies.
Reliance Media & Entertainment Fund
Reliance Media & Entertainment Fund is an Open-ended Media & Entertainment sector scheme.
The The primary investment objective of the Scheme is to generate consistent returns by
investing in equity / equity related or fixed income securities of media & entertainment and other
associated companies.
NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net
of its liabilities. NAV per unit is simply the net value of assets divided by the number of units
outstanding. Buying and selling into funds is done on the basis of NAV-related prices. NAV is
calculated as follows:
NAV= Market value of the funds investments+Receivables+Accrued Income.
Liabilities-Accrued Expenses

38

Methodology
Data sources :

Primary Data: Primary data was collected by administering questionnaire. It is

systematic collection of information directly from the Reliance Mutual Fund
Investors . The basic purpose of collecting primary data is to know the preferred
Equity Schemes of Reliance Mutual funds

39

Secondary data: Secondary datas are collected from Reliance website, financial
journals, recent Fact sheet of Reliance mutual fund relating to mutual funds

Sampling
Sample size: 50 Reliance Mutual fund Investors
Area of research: Belgaum City.
Research approach: Survey method.
Research Instrument: Questionnaire.

CONTENTS

Results & Discussion with Charts & Graphs

40

Summary, Conclusion & a Proposed Action Plan with Resource Requirements &
Projected Benefits to the Organization

PERFORMANCE
COMPARISM
OF
MUTUAL
FUND
SCHEMES
Equity diversified schemes
There is lot of variety schemes offered by AMCs. Equity diversified is one of the scheme
offered by the AMC .the selection criteria of schemes is totally depend on the fund size and age
of the fund. The scheme, which has the corpus value, is more than 500Crs .

41

The following are the equity-diversified schemes in the selected funds. at the current date
as 06/03/07
Tables for fund size
Reliance Mutual Fund Equity schemes
Scheme name

Fund size

DOI

FUND
CLASS

Reliance Equity Fund (G)

4359.6

03/07/06

ED

2385.65

03/07/05

ED

3263.71

09/08/95

ED

2473.68

09/07/95

ED

1501.78

08/23/05

ETS

Reliance Equity Opportunities Fund

(G)
Reliance Growth Fund (G)
Reliance Vision Fund (G)
Reliance Tax Saver (ELSS) Fund
(G)

1. Return:

Name of Scheme

DOI
(30/03/07)

5yrs
Avg
return

Returns (annualized)
1 yr

2yr

3yr

4yr

5yr

48.21

93.23

80.40

27.21

53.64

60.54

50.45
47.48

62.62
106.91

60.56
53.02

34.41
29.77

81.42
18.07

57.89
51.05

Reliance Growth Fund (G)

199.52
Reliance Vision Fund (G)
137.65
Reliance Tax Saver (ELLS) 115.193
Fund(G)

42

Reliance

Equity

Opportunities Fund (G)

45.4206

48.24

63.85

70.46

32.17

-2.24

42.50

26.52

32.47

39.03

28.00

9.97

0.00

27.37

Reliance Equity Fund (G)

NAVt NAVt-1
Portfolio return: Rit =--------------------------------NAV t-1

Where Rit is the difference between Net Asset Values for two consecutive days dividend by the
NAV of the preceding day.

2. Risk

Beta

Scheme name

5 years avg return*

Beta

Reliance Growth Fund (G)

60.54

0.91

Reliance Vision Fund (G)

57.89

0.98

Reliance Tax Saver (ELLS) Fund(G)

51.05

0.93

Reliance Equity Opportunities Fund (G)

42.50

0.96

Reliance Equity Fund (G)

27.37

0.94

* Returns are annualized

=

nxy-(x)( y)

43

nx2-(x) 2
Where n= number of days
X =rolling returns of the NSE index
Y= rolling returns of the schemes
Beta describes the relationship between the stocks return and the index returns. it describes
the risk in the portfolio with comparing market risk as 1 .
If beta =1
One percent changes in market index return causes exactly one percent change in the stock
returns. it indicates that the stock moves in tandem with the market .
If Beta <1
Then the stock is less volatile compared to the market.
If Beta >1
Then the stock is more volatile compared to the market. The stock value
With more then 1 beta value is considered to be risky.
If Beta ve: native Beta indicates that the stock returns moves in the opposite direction to the
market return.

44

Standard deviation
It is used to measure the variation in individual returns from the average expected
returns over a certain period. Standard deviation is used in the concept of risk of a
portfolio of investments. Higher standard deviation means a greater fluctuation in
expected return.

Name of Scheme
Reliance
(G)

Growth

DOI
Returns (annualized)
(30/03/07
)
1 yr
2yr
3yr

5yrs
Avg
return
4yr

5yr

199.52

48.21

93.23

80.40

27.21

53.64

60.54

23.55

137.65

50.45

62.62

60.56

34.41

81.42

57.89

15.43

115.193

47.48

106.91

53.02

29.77

18.07

51.05

30.59

45.4206

48.24

63.85

70.46

32.17

-2.24

42.50

26.00

26.52

32.47

39.03

28.00

9.97

0.00

27.37

14.59

SD

Fund

Reliance Vision Fund (G)

Reliance
Tax
(ELLS) Fund(G)
Reliance

Saver
Equity

Opportunities Fund (G)

Reliance Equity Fund (G)

Standard deviation (SD) =\/ var

45

Where Var = variance

Var= ( p (ri-E(r)) 2
Return & Risk

Name of Scheme

5 yrs avg
DOI(30/03/07) returns sd

beta

Reliance Growth Fund (G)

3263.71

60.54

23.55

0.91

Reliance Vision Fund (G)

2473.68

57.89

15.43

0.98

Reliance Tax Saver (ELLS) Fund(G)

1501.78

51.05

30.59

0.93

Reliance Equity Opportunities Fund (G) 2385.65

42.50

26.00

0.96

Reliance Equity Fund (G)

27.37

14.59

0.94

4359.6

Sharpes

46

Sharpes index measures the risk premium of the portfolio relative to the total amt of risk
in the portfolio. This risk premium is the difference between the portfolios average rate of return
and the risk less rate of return. The index assigns the highest values to assets that have best riskadjusted average rate of returns.

Name of Scheme

5 yrs avg
returns
DOI(30/03/07) rp
rf

sd

st

Reliance Growth Fund (G)

3263.71

60.54

23.55

2.23

Reliance Vision Fund (G)

Reliance Tax Saver (ELLS) Fund(G)
Reliance Equity Opportunities Fund (G)
Reliance Equity Fund (G)

2473.68
1501.78
2385.65
4359.6

57.89
51.05
42.50
27.37

8
8
8
8

15.43
30.59
26.00
14.59

3.23
1.40
1.33
1.32

Where
st =Sharpes index
Rp=portfolio return
Rf=Risk free rate of return (8 %)
SD= standard deviation of the port folio

St=

RP-Rf
SD

47

Interpretation:
Reliance Vision Fund (G) is performing well and is ranked No 1 according to Sharpes as it
is giving higher returns compared to other Schemes.

Name of Scheme
Reliance Growth Fund (G)

5 yrs avg
returns
DOI(30/03/07) rp
rf
3263.71
60.54

Beta
0.91

tn
57.74

48

8
Reliance Vision Fund (G)
Reliance Tax Saver (ELLS) Fund(G)
Reliance Equity Opportunities Fund (G)
Reliance Equity Fund (G)
Treynors Index:

2473.68
1501.78
2385.65
4359.6

57.89
51.05
42.50
27.37

8
8
8
8

0.98
0.93
0.96
0.94

50.91
46.29
35.94
20.61

In Treynors higher the ratio higher the performance.

Tn =Treynors index
Rp=portfolio return
Rf=Risk free rate of return (8 %)
Formula
Tn=

RP-Rf
Beta

49

Interpretation:
Reliance Growth Fund (G) is performing well and is ranked No 1 according to Treynors
index as it is giving higher returns compared to other Schemes according to him and also the risk
involved is less

Performance Evaluation Tables

Name of the scheme

DOI
(30/06/06) Rp

Reliance Growth Fund (G)

3263.71

60.54 0.91

23.55 2.23

57.74

Reliance Vision Fund (G)

2473.68

57.89 0.98

15.43 3.23

50.91

1501.78

51.05 0.93

30.59 1.40

46.29

Fund (G)

2385.65

42.50 0.96

26.00 1.33

35.94

Reliance Equity Fund (G)

4359.6

27.37 0.94

14.59 1.32

20.61

Reliance
Fund(G)
Reliance

Tax
Equity

Saver

Beta

SD

Sharpes Treynors

(ELLS)

Opportunities

50

Analysis of Survey
1.Sources from Investors came to know about Reliance Mutual fund

Valid

Friends/Relatives
Newspapers/
Televisions
Brokers/Agents
Financial
Consultants
Total

Frequency

Percent

Valid Percent

12
7

24.0
14.0

24.0
14.0

Cumulative
Percent
24.0
38.0

16
15

32.0
30.0

32.0
30.0

70.0
100.0

50

100.0

100.0

Sources from Investors came to know about Relaince Mu

20

Frequency

10

0
Friends/Relatives

Brokers/Agents

New spapers/Televisio

Financial Consultant

Sources from Investors came to know about Relaince Mutual fund

51

Interpretation:
For the popularity of the mutual funds all the means contributed all most equally but the
dominated factor in these factors is advice from the Brokers/Agents, which contributed around
32% followed by the financial agents at 30%.

2.Reliance Schemes most preferred by investors

Valid

Frequency Percent

Valid
Percent

Cumulative
Percent

Equity

30

60.0

60.0

60.0

Debt

20

40.0

40.0

100.0

Total

50

100.0

100.0

Reliance Schemes most preferred by investors

40

30

Frequency

20

10

0
Equity

Debt

Reliance Schemes most preferred by investors

Interpretation:

52

60% of the respondents prefer equity schemes as investors now days are ready to risk
because they are getting good returns, whereas 40% of the respondents prefer debt schemes.

. 3a.Reliance equity fund

Frequency Percent
Valid

1
2
4
5
Total

9
1
30
10
50

18.0
2.0
60.0
20.0
100.0

Valid
Percent
18.0
2.0
60.0
20.0
100.0

Cumulative
Percent
18.0
20.0
80.0
100.0

53

Reliance equity fund

70
60
50
40
30

Percent

20
10
0
1

Reliance equity fund

Interpretation:
Reliance equity fund is ranked 4 th by majority of the Investors as the returns are not so
high compared to the other Schemes of Equity.

54

3b.Reliance equity Opportunity fund

Frequency Percent
Valid

1
2
4
5
Total

1
9
10
30
50

2.0
18.0
20.0
60.0
100.0

Valid
Percent
2.0
18.0
20.0
60.0
100.0

Cumulative
Percent
2.0
20.0
40.0
100.0

Reliance equity Oppurtunity fund

70
60
50
40
30

Percent

20
10
0
1

Reliance equity Oppurtunity fund

55

Interpretation:
Reliance Equity opportunity fund is ranked 5th by 60% of the Investors investing in Reliance
mutual fund as the returns are low and also riskier compared to other 4 schemes.

3c.Reliance Growth fund

Valid

1
2
3
4
Total

Frequency

Percent

Valid
Percent

Cumulative
Percent

26
3
18
3
50

52.0
6.0
36.0
6.0
100.0

52.0
6.0
36.0
6.0
100.0

52.0
58.0
94.0
100.0

56

Reliance Growth fund

60

50

40

30

Percent

20

10
0
1

Reliance Growth fund

3d. Reliance Vision fund

57

Valid

1
2
3
4
5
Total

Frequency

Percent

2
24
16
7
1
50

4.0
48.0
32.0
14.0
2.0
100.0

Valid Percent Cumulative

Percent
4.0
4.0
48.0
52.0
32.0
84.0
14.0
98.0
2.0
100.0
100.0

Reliance Vision fund

60

50

40

30

Percent

20

10
0
1

Reliance Vision fund

58

3e.Reliance Tax Saver-ELSS

Valid

1
2
3
5
Total

Frequency

Percent

12
14
15
9
50

24.0
28.0
30.0
18.0
100.0

Valid PercentCumulative
Percent
24.0
24.0
28.0
52.0
30.0
82.0
18.0
100.0
100.0

Reliance Tax Saver-ELSS

40

30

20

4a. Safety
Percent

10

Valid

Frequency Percent
1
10
20.0
2
33
66.0
1 2
2 4.0
5
6
5
10.0
Total Tax Saver-ELSS
50
100.0
Reliance

Valid
Percent
20.0
66.0
4.0
10.0
100.0

Cumulative
Percent
20.0
86.0
90.0
100.0

59

Safety
70
60
50
40
30

Percent

20
10
0
1

Safety
Interpretation:
Out of the 50 respondents 66 % of them have rated 2 to safety because every investors
needs safety in his investment made but also some of them have given least preference to safety
because as we know higher the risk higher the return.

4b. Rate of Return

Frequency Percent
Valid

1
2
3
4
5
Total

33
9
1
2
5
50

66.0
18.0
2.0
4.0
10.0
100.0

Valid
Percent
66.0
18.0
2.0
4.0
10.0
100.0

Cumulative
Percent
66.0
84.0
86.0
90.0
100.0

60

Rate of Return
70
60
50
40
30

Percent

20
10
0
1

Rate of Return
Interpretation:
66% of the respondents have ranked rate of return as No 1 ranking this is because of the
changing trend where people are ready to take risk but they expect good returns and higher return
each time.

4c. Liquidity

Valid

1
2
3
4
5

Frequency

Percent

2
1
9
26
12

4.0
2.0
18.0
52.0
24.0

Valid PercentCumulative
Percent
4.0
4.0
2.0
6.0
18.0
24.0
52.0
76.0
24.0
100.0

61

Total

50

100.0

100.0

Liquidity
60

Interpretation:

50

40

Out of the 50

30

respondents 52% of

Percent

20

them

10

have

liquidity

0
1

as

ranked
4th

whereas only 10% of

Liquidity

them have ranked 3rd which shows liquidity is given least preference when compared to other
factors.

4d. Tax Benefit

Frequency Percent
Valid

2
3
4
5
6
Total

2
26
9
1
12
50

4.0
52.0
18.0
2.0
24.0
100.0

Valid
Percent
4.0
52.0
18.0
2.0
24.0
100.0

Cumulative
Percent
4.0
56.0
74.0
76.0
100.0

62

Tax Benefit
60

50

40

30

Percent

20

10

0
2

Tax Benefit
Interpretation:
52% of the respondents have ranked 3rd for tax benefit which shows people give
importance for tax benefit as it saves the investors money.

4e. Brand name

Frequency Percent
Valid

2
3
4

5
2
13

10.0
4.0
26.0

Valid
Percent
10.0
4.0
26.0

Cumulative
Percent
10.0
14.0
40.0

63

5
6
Total

18
12
50

36.0
24.0
100.0

36.0
24.0
100.0

76.0
100.0

Brand name
40

30

20

Percent

10

0
2

Brand name
Interpretation:
36% of the respondents have ranked 5 th to Brand which shows importance is given to
brand name of the company in which investors are investing as it is shows the credit worthiness
of the company.

4f. Flexibility

64

Frequency Percent
Valid

1
3
5
6
Total

5
12
12
21
50

Valid
Percent
10.0
24.0
24.0
42.0
100.0

10.0
24.0
24.0
42.0
100.0

Cumulative
Percent
10.0
34.0
58.0
100.0

Flexibility
50

40

30

20

Percent

10

0
1

Flexibility
Interpretation:
42% of the respondents have ranked 6 th to Flexibility which shows not much importance
is given to flexibility as far as investors are getting good return from the schemes.

65

5a. Reliance Mutual Fund

Frequency Percent
Valid

1
2
4
Total

14
34
2
50

28.0
68.0
4.0
100.0

Valid
Percent
28.0
68.0
4.0
100.0

Cumulative
Percent
28.0
96.0
100.0

Reliance Mutual Fund

80

60

40

Percent

20

0
1

Reliance Mutual Fund

Interpretation:
Majority of the respondents have ranked Reliance mutual funds as 2 nd when compared to
the other 4 companies so this shows that in a short span of time Reliance has made a good image
in the eyes of the investors.

66

5b. HDFC Mutual Fund

Frequency Percent
Valid

1
2
3
4
5
Total

2
1
35
9
3
50

4.0
2.0
70.0
18.0
6.0
100.0

Valid
Percent
4.0
2.0
70.0
18.0
6.0
100.0

Cumulative
Percent
4.0
6.0
76.0
94.0
100.0

HDFC Mutual Fund

80

60

40

Percent

20

0
1

HDFC Mutual Fund

Interpretation:
Majority of the investors have ranked HDFC mutual fund as 3 rd when compared to other
mutual fund so comparatively it is doing well.

67

5c. Franklin Templeton Mutual Fund

Valid

1
2
3
4
Total

Frequency

Percent

32
15
2
1
50

64.0
30.0
4.0
2.0
100.0

Valid Percent Cumulative

Percent
64.0
64.0
30.0
94.0
4.0
98.0
2.0
100.0
100.0

Franklin templeton Mutual Fund

70
60
50
40
30

Percent

20
10
0
1

Franklin templeton Mutual Fund

Interpretation:
Franklin has been ranked NO 1 mutual fund company by the respondents when compared
to the other mutual funds as it has maintained its returns over a long period of time.

68

5d. UTI mutual Fund

Valid

1
3
4
5
Total

Frequency

Percent

Valid
Percent

Cumulative
Percent

1
10
5
34
50

2.0
20.0
10.0
68.0
100.0

2.0
20.0
10.0
68.0
100.0

2.0
22.0
32.0
100.0

UTI mutual Fund

80

60

40

Percent

20

0
1

UTI mutual Fund

Interpretation:

69

Majority of the investors are not preferring UTI mutual funds as their returns are very low
when compared to their previous records and so it is been ranked 4th by the investors.

5e. ICICI mutual fund

Frequency Percent
Valid

1
3
4
5
Total

1
3
33
13
50

2.0
6.0
66.0
26.0
100.0

Valid
Percent
2.0
6.0
66.0
26.0
100.0

Cumulative
Percent
2.0
8.0
74.0
100.0

ICICI mutual fund

70

Interpretation:

60

Majority of the

50

investors

40
30

not

preferring UTI mutual

20

Percent

are

funds as their returns

10

are very low when

0
1

compared to other 3

ICICI mutual fund

companies but it is ranked 4th that shows it is performing good than UTI mutual fund.

Findings

70

32% of the Investors have come to know about Reliance mutual fund through
Brokers/Agents followed by 30% who have come to know through Financial
Consultants

60% of the Investors are giving more preference to Equity schemes as they are giving
higher return whereas 40% of them prefer Debt Schemes because of the Safety they
provide

52% of the investors prefer Reliance Growth Fund followed by Reliance Vision Fund and
other Schemes.

66% of the investors give most importance to Rate of return as they expect higher and
higher returns followed by Safety as it is also important aspect of investors.

Reliance Mutual Fund is Ranked 2nd by the Investors i.e. 68% of them have ranked
Reliance as 2nd and Franklin Templeton is Ranked 1st.

SUGGESTIONS

Holding a seminar and presentations or Investors meet in the stock broking firm help the
investors to remove any misconception regarding the Mutual Fund and this will create
awareness of Mutual fund.

Agents are the main person who influences the investment decision. Company can hire
fresh graduates train them and sponsor for the AMFI exam just like insurance companies

71

who conduct IRDA training. This will increase the feet on street for the mutual fund
companies.

Company has to provide timely services to its customers so that it can compete with its
competitors like Franklin Templeton and HDFC.

CONCLUSION

After the analysis made on the performance of Equity Schemes of Reliance

Mutual Fund I can conclude that Equity schemes are most preferred by Investors and overall
Reliance Vision Fund and Reliance Growth scheme are doing extremely well in the market
satisfying the customer wants of high returns and also through survey conducted it is clear
that Reliance is performing quite well so it has been ranked 2nd among the selected

72

companies. From the study we also came to know that according to Sharpe s Reliance
Vision fund is ranked First but according to Treynors Reliance growth fund is ranked First.

CONTENTS

QUESTIONAREE
ANNEXURE
BIBLOGRAPHY

73

QUESTIONNAIRE
Dear Sir/Madam:

Personal Details:

Name

Address

Occupation

Contact No

: _____________________________________________
: _____________________________________________
: _____________________________________________
: _____________________________________________

1. How did you come to know about Reliance mutual Fund?

Friends /Relatives
Brokers/Agents

News papers / magazines

Financial consultants.

Other_________________________
2. Which Schemes of Reliance Mutual fund would you prefer the most?

74

Equity Schemes

Debt Scheme

3. Which Equity Scheme you prefer the most in Reliance Mutual Fund?
(Rank them from 1 to 5, 1 being the most preferred and 5 being the least)
Reliance Growth

[ ]

Reliance Vision Fund

[ ]

Reliance Equity Opportunity Fund

[ ]

Reliance Tax Saver (ELSS) Fund

[ ]

Reliance Equity Fund

[ ]

4. What factors do you consider while investing in mutual fund?

(Rank them from 1 to 6. No1 for preferred and No 6 for least preferred)
Safety

Rate of return

Liquidity

Tax benefit

Flexibility

Brand Name

5. How would you rate Reliance mutual fund when compared to the other mutual
Fund? (Rank them from 1 to 5, 1 being the Highest & 5 being the lowest).
Reliance

[ ]

HDFC

[ ]

Franklin Templeton

[ ]

UTI

[ ]

Pru ICICI

[ ]

75

THANK YOU

Annexure
Details about top schemes

RELIANCE VISION FUND

Structure
Inception Date

Open ended Equity Growth Scheme

08/10/1995

Corpus

2473.68 crore

Minimum Invst

5000

Fund Manager

Ashwini Kumar

Entry Load

2.25%

Exit Load

Nil

Investment Objective

The primary investment objective of the scheme is to achieve

long-term growth of capital by investment in equity and
equity-related securities through a research-based investment
approach.

RELIANCE GROWTH FUND

Structure
Inception Date

Open ended Equity Growth Scheme

08/10/1995

76

Corpus

3263.71

Minimum Invst

5000

Fund Manager

Sunil Singhania

Entry Load

2.25%

Exit Load

Nil

Investment Objective

The primary investment objective of the scheme is to achieve

long-term growth of capital by investing in equity and equity
related securities through a research-based
investment approach.

RELIANCE TAX SAVER FUND

Structure
Inception Date

Open ended Equity Growth Scheme

22/09/2005

Corpus

1501.78

Minimum Invst

500

Fund Manager

Ashwani Kumar

Entry Load

2.25%

Exit Load

Nil

Investment Objective

The primary objective of the scheme is to generate long-term

capital appreciation from a portfolio that is invested
predominantly in equity and equity-related instruments.

RELIANCE EQUITY OPPURTUNITY FUND

77

Structure
Inception Date

Open ended Equity Growth Scheme

31/03/2005

Corpus

Rs 2,385.65 crore

Minimum Invst

5000

Fund Manager

Entry Load

2.25%

Exit Load

Nil

Investment Objective

The primary investment objective of the scheme is to seek to

generate capital appreciation and provide long-term growth
opportunities by investing in a portfolio constituted
of equity securities & equity-related securities and the
secondary objective is to generate consistent returns by
investing in Debt and Money Market securities.

Sailesh Raj Bhan

RELIANCE EQUITY FUND

Structure
Inception Date

Open ended Equity Growth Scheme

30/03/2006

Corpus

Rs 4359.6 crore

Minimum Invst

5000

Fund Manager

Entry Load

2.25%

Exit Load

Nil

Investment Objective

The primary investment objective of the scheme is to seek to

generate capital appreciation and provide long-term growth
opportunities by investing in a portfolio constituted
opportunities by investing in a portfolio constituted of equity
and equity related securities of top 100 companies by market
capitalization and of companies which are available in the
derivatives segment from time to time and the secondary
objective is to generate consistent returns by
investing in debt and money market securities.

Sailesh Raj Bhan

78

Bibliography
Reliance Fact Sheets
Invest smart financial Journal
Websites
- www.myris.com
- www.reliancemf.com
- www.equitymaster.com

79