INTERVIEW QUESTION:

1. When was Reliance mutual fund first started ? And what was
the reason behind it?
Reliance mutul fund was started in the year 1995.The reason to introduce
reliance mf in the market was to establish an asset management
company.To Have a specific objective.To collect money from various
people and invest in different markets. Help money across investment.
2. What is an Asset Management Company?
The company that manages a mutual fund is called an AMC. For all
practical Purposes, it is an organized form of a money portfolio manager.
An AMC may have several mutual fund schemes with similar or varied
investment objectives. The AMC hires a professional money manager, who
buys and sells securities in line with the funds stated objective.
3. What is the role of SEBI in mutual funds?
SEBI (securities and exchange board of india) is an act passed in the year
1992. SEBI acts as a regulator. It formulates policies. The objectives is to
protect the interest of the investors, to promote the development by
issuing guidelines to the mutual funds from time to time.
4. Why should one invest through Mutual Funds?
We are not all investment professionals. We go to a doctor when we need
medical advice or a lawyer for legal guidance, similarly mutual fund are
investment vehicles managed by professional fund managers. Mutual fund
are like professional money managers; however a key factor in their
favour is that they are more regulated. Investing is becoming more
complex. There was a time when things were quite simple. Mutual funds
provide an option of investing without getting lost in the complexities.
Mutual funds provide risk diversification, diversification of portfolio. And it
is necessary to reduce the level of risk. It would be better of leaving
investment to a professional. Hence mf represents one good option.
5. Are investment in mutual fund units risk free or safe?
This depends on the underline instrument that a mutual fund invests in,
based on its investment objectives. Mutual funds that invest in stock
market related instruments cannot be termed risk free or safeas
investment in shares are inherently risky by nature, whereas funds that
invests in fixed income instruments are relatively safe and those that
invest only in government securities are safest.

6. Why according to you less people prefer mutual funds?

Less people prefer mf because of lack of knowledge.Lack of awareness,
people are not aware of the benefits mutual provide with. Lack of trust
and inefficient investment decision adds up.
7.What are the benefits of investing in reliance mutual funds?

Small investment amounts

Professionally managed
Spreading of risks
Liquidity
Choice
Regulation
interactivity

8. What are the different schemes/plans reliance Mutual Fund

offer?
There are total 26 mf schemes provided by reliance mutual fund. Some of
these are reliance vision fund, reliance growth fund, reliance banking
fund, reliance tax saver fund etc Reliance gold investment schemes is also
one of the beneficial scheme. It is a scheme to enable systematic saving
in gold. There are more new schemes to introduce depending on the
competition in the market.
9. Why are mf are safe investment option?
Mutual funds allow investors to pool in their money for a diversified
selection of securities where they can withdraw their money as per their
convenience, managed by a professional fund manager.

It provides expert managers

Convenience
Low cost
Higher return potential
Safety ans transparency

10.what is the role of a fund manager?

Fund manager constantly monitors market and economic trends and
analyse securities in order to make informed investment decisions . they
plan a vital role in implementing a consistent investment strategy that is
in synergy with the goals and objectives of the fund .
11.What are the advantages of mf?

Less risks
Better fund management
Rate begins min from 100 rs onward
Participation of retail investors
Fixed maturity plans (FMPs)
Save tax
Manage cash
Wealth creation

12.what is the future prospects of mutual fund in india ?

The Industry has got huge scopes of development in the times to come
.The future of mutual funds in india is quite bright . mutual funds are one
of the most popular forms of investment as these funds are
diversification ,professional management and liquidity. In the year
2007,the mutual fund industry is expected to grow at a rate of 13.4% over
the next 10 years . It will take some years for more and more people to
invest in mutual funds .It will be constant and the market will grow .
Mutual funds will help in the growth of the market.
13.Why are mutual funds subject to market risk?
Mutual funds and securities investment and there can be no insurance
and no guarantee that the objective of principal mutual fund can be
achieved .

CHAPTER 4
RECOMMANDATIONS AND CONCLUSION:
RECOMMANDATIONS:

Reliance money has to add some extra features in it with aggressive

marketing promotional strategy.
Advertisement on television is the main source of attraction so the
company must advertise its product heavily
Product must be improved
There should be provision of complain suggestion boxes at each
branch

CONCLUSION:
Mutual funds not only provide efficient management of funds for
individuals/bodies who either dont have time or expertise to track live
markets regularly ,but it is also considered as a great tool of
diversification.
The different types of mutual funds whether actively or passively
managed suit the different risk profiles of every client.Specialized funds
ike Gold fund ,Bank funds,infra ,etc also are purchased by investors
who are overweight on a particular sector . Short term and risk averse
investors can save in money market mf.
Reliance mutual funds has got more than 1 lakh crore as assets under
management and provides world class services such as 24/7 Contact
center,debit card to redeem the mf units ,safe and secure online
options

Mutual fund investment is better than other raising fund .

Reliance mutual fund have good returns in investment .
A good bank is always welcomed over here people are more aware
and conscious for the brand so they are ready to spend some extra
bucks for the quality .
Atlast all cons are concluded by that reliance money is still growing
industry in india and is still exploring its potential and prospects in
here .

Reliance India mutual funds provide major benefits to a comman

man who wants to make his life better than previous .

CHAPTER 5
CASE STUDY:
QUESTION:
I Have been investing in the market since the last 3 to 4 years,and
have investments in the following mutual fund schemes :
SR.N
O
1.
2.
3.
4.
5.
6.
7.
8.
9.

NAME OF MUTUAL FUND SCHEME

Sundaram BNP Paribas Energy Opportunities(G)
SBI Infrastructure(G)
Reliance Diversified Power Sector(G)
HDFC Top 200(G)
SBI Magnum Equity (G)
HSBC Equity fund (G)
Franklin India Flexi Cap(G)
Franklin India Prima Plus (G)
SBI Contra(G)

However,the aforementioned funds have performed quite badly

.Hence could you please advice a s to what to do with these funds ?
ANSWER:
If we assess the performance of the funds held by you ,thematic
funds focusing on power and energy sector and infrastructure sector
havent been able to clock very ;luring returns .It is noteworthy that
their lack lusture performance has occurred due to:
Anti-inflationary monetary policy stance maintained by
RBI(Dampening mood in sector)
Project execution delay and stricker environmental norms
hindering power and energy sector
But having said that ,thus fa-r in the last three years these
funds have exposed their investors to low risk (as revealed
thestandard deviation of below 10%),and hence the riskadjusted returns (as revealed by the sharp ratio )too clocked
by them isnt very inspiring .

While interest rate sectors from heroen are expected to perform

better ,due to descending trend in the interest rate scenario
expected from the next fiscal year (i.e2012-13),we recommend
thatyou redeem your investments in the aforementioned thematic
funds and indiversified opportunities style funds , as they have the
mandate of engulfing opportunity across themes and market
capitalisations .Thus by doing so,youll not only benefit from only
infrastructure sector(which is an interest sensitive sector ),but also
other interest sensitive sectors such as autos ,banking , etc
As far as your mutual fund holdings in diversified equity funds are
concerned,they are fairly diversified across mutual fund houses ,and
are skewed towards funds following the value style of
investing.Barring SBI Magnum Contra you may continue to hold aa
other diversified equity schemes as they have shown a consistent
performance track record across bull and bear phases of the Indian
equity markets .We recommend that you exitSBI Magnum Contra
as the fund has lagged its peers in the contrarianstyle of
investing.
In order to obtain a more comprehensive detail review of your
aforementioned portfolio,we recommend that you avail of our
mutual fund portfolio review service,which can help you assess
other vita details such as :

Sectors you are exposed to

Top -10 stock holdings of your total mutual fund portfolio
Composition of your portfolio between thematic and
diversified equity schemes
Risk return