SUMMER INTERNSHIP PROJECT REPORT

COMPARITIVE ANALYSIS OF RELIANCE

MUTUAL FUNDS WITH OTHER EXISTING
MUTUAL FUNDS

INSTITUTE OF MANAGEMENT SCIENCE

LUCKNOW UNIVERSITY

In partial fulfillment of the requirement for the award Degree ofMaster of

Business Administration (MBA)

SUBMITTED TO:
Mr. Saurav Banerjee
Co-ordinator MBA (CM)
IMS Lucknow University

SUBMITTED BY:
Manoj Chaubey
Roll no: 17216008993
MBA IIIrd semester
Institute of Management Science,
Lucknow University, Lucknow

UNIVERSITY OF LUCKNOW, LUCKNOW

SESSION- 2016-18

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 DECLARATION

I, Manoj Chaubey, herebydeclare that the project Titled "Comparitive

Analysis Of Reliance Mutual Funds With Other Existing Mutual Funds"

is an original project done by me and no part of this project is taken from any

source or material published and not submitted to any other colleges and

university.

Manoj Chaubey
Roll No. 17216008993

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 PREFACE
With the growth of rapid industrialization the need of management is felt every where

.management, A research report provides the most natural condition under which a student

can learn and got success in implementing the theoretically learned in to the practical and

current environment of daily practices done by the people (investor) it helps a student to

learn, to improve, to improvise, to experiment, to find knowledge in all possible ways and

to translate that knowledge into action.

MBA is a foundation stone to the management career. The classroom learning needs to

practical exposure. To develop concrete managerial and administrative skills of potential

manager, it is important that the interaction to the real environment be there.

The project is a real life venture for me. It is a great privilege that you have spread your for

reading this. In forthcoming pages, an attempt has been made to present the different aspect

of my project.

Date :- (Manoj chaubey )

Place: Lucknow

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 ACKNOWLEDGMENT

If words are considered as a symbol of approval and taken of appreciation then let the words

play the heralding role expressing my gratitude.

First of all I thank to my Mr. ABISHAK SINGH who blessed me with all kind of facilities

that had been provided to me for completion of my report. Special thanks to Mr. VIKASH

SIR for his valuable information.

Im also grateful to my teacher for guiding me to learn and helped me on project on

COMPARITIVE ANALYSIS OF RELIANCE MUTUAL FUND WITH OTHER

EXISTING MUTUAL FUNDS.

My endless appreciation goes to my all respected faculty who has stood by my side and give

me moral support whenever I was low and boosted my will power. Finally, I would like to

express my solidarity towards the RELIANCE GROUPfor providing me with such an

opportunity.

Thank You

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 TABLE OF CONTENTS
INTRODUCTION 7-8

HISTORY OF THE RELIANCE COMPANY 9-10

COMPANY PROFILE 11-13

RELIANCE MUTUAL FUND PROFILE 14-19

Reliance Mutual Fund - Accelerating Growth

About the project

HISTORY OF MUTUAL FUND 20_62

Advantages of mutual funds

Disadvantages of mutual funds

Risks involved in mutual funds

Various mutual fund scheme

Types of mutual fund

Different types of funds

Costs involved in mutual fund

The values of your fund

Some of the existing asset management company

Development of mutual fund in India

Graphical representation

Mutual funds organizations

Flow chart

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 Frequently used terms in mutual funds

Structure of Indian mutual fund

Working of mutual fund

OBJECTIVE OF THE STUDY 63-64

SCOPE OF THE STUDY 65-66

RESEARCH METHODOLOGY 67-70

USE OF THE PROJECT 71

IMPORTANCE OF THE STUDY 72-73

RESEARCH ANALYSIS AND INTERPRETATION 74-90

FINDINGS 91-92

SWOT ANALYSIS 93-96

Strengths
weakness

RECOMMENDATIONS 97-98

CONCLUSION 99-100

ANNEXURE 101-105

BIBLIOGRAPHY 106

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 INTRODUCTION
There are a lot of investment avenues available today in the financial market for an investor

with an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and

Bonds where there is low risk but low return. He may invest in Mutual of companies where

the risk is high and the returns are also proportionately high. The recent trends in the Mutual

Market have shown that an average retail investor always lost with periodic bearish tends.

People began opting for portfolio managers with expertise in Mutual markets who would

invest on their behalf. Thus we had wealth management services provided 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 on in

India. The reasons for this interesting occurrence are:

# Mutual funds make it easy and less costly for investors to satisfy their need for capital

growth, income and/or income preservation.

# Mutual fund brings the benefits of diversification and money management to the

individual investor, providing a Opportunity for financial success that was once available

only to a select few.

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 History of Reliance Company
The reliance group founded by Dhirubhai. H. Ambani (1932-2002) is Indias largest private

sector enterprise. He is credited to have brought about the equity cult in India in the late

seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to

dream and learn to excel. The Reliance Group is a living testimony to his indomitable will,

single-minded dedication and an unrelenting commitment to his goals.

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. In 1978

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 General

Insurance 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 mutual fund

industry had assets under management of Rs. 47,004 crores.

With the entry of Private Sector Funds a new era has started in Mutual Fund Industry .

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 Company Profile

Reliance Group Holdings has grown from a small office data-processing equipment firm in

1961 into a major insurance and financial-services group in one generation under one chief.

Reliance's insurance operations constitute the nation's 27th-largest property and casualty

operation. The parent company also includes a development subsidiary in commercial real

estate. Reliance's international consulting group contains several energy, environment, and

natural resources consulting. A financial arm invests in other businesses, primarily

television stations.

Reliance Insurance started as the Fire Association of Philadelphia in 1817, organized by 5

hose and 11 engine fire companies. It became the nation's first association of volunteer fire

departments. Business got a boost as a result of the GreatChicago Fire of 1871.

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The association soon developed a field of agents to write policies across the country. For the

first two years, shareholders received dividends twice a year of $5 a share, which increased

gradually to $10 in 1876.

In 1972, the Reliance insurance group divided its pool so that Reliance Insurance Company

and its subsidiaries handled most standard lines, while United Pacific Insurance Company

handled 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 estate operations

of the parent company and other subsidiaries. Reliance Capital Group, L.P. constituted the

investment branch of the Reliance conglomerate.

In December 1989, Reliance Capital sold its investment, Days Corporation, parent company

of Days Inn of America, the world's third-largest hotel chain; it had been purchased in 1984.

Reliance Industries Limited. The Group's principal activity is to produce and distribute

plastic and intermediates, polyester filament yarn, fiber intermediates, polymer

intermediates, crackers, chemicals, textiles, oil and gas. The refining segment includes

production and marketing operations of the Petroleum refinery. The petrochemicals

segment includes production and marketing operations of petrochemical products namely,

High and Low density Polyethylene.

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

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

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Reliance mutual fund
profile

Reliance Mutual Fund - Accelerating Growth

Reliance Mutual Fund, a part of the Reliance Anil Dhirubhai Ambani Group is the No. 1

Mutual Fund in India. Reliance Mutual Fund offers investors a well rounded portfolio of

products to meet varying investor requirements. Reliance Mutual Fund has a presence in

over 100 cities across the country, an investor base of over 3.9 million and manages assets

over Rs. 67,598 Crores as on August 31, 2007. Reliance Mutual Fund constantly endeavors

to launch innovative products and customer service initiatives to increase value to investors.

Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd.,a

wholly owned subsidiary of Reliance Capital Ltd. Reliance Capital Ltd. is one of Indias

leading and fastest growing private sector financial services companies, and ranks among

the top 3 private sector financial services and banking companies, in terms of net worth.

Reliance Capital Ltd. has interests in asset management and mutual funds, life and general

insurance, private equity and proprietary investments, stock broking and other financial

services.

No.1 basis Assets under Management (AUM) as on August 31, 2007.

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 ABOUT PROJECT

MUTUAL FUND

Amutual fund is nothing more than a collection of Mutuals and/or bonds. You can think of a

mutual fund as a company that brings together a group of people and invests their money in

Mutuals, bonds, and other securities. Each investor owns shares, which represent a portion

of the holdings of the fund.

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You can make money from a mutual fund in three ways:

1) Income is earned from dividends on Mutual and interest on bonds. A fund pays out.

Nearly all income it receives over the year to fund owners in the form of a distribution.

2) If the fund sells securities that have increased in price, the fund have a capital gain. Most
funds also pass on these gains to investors in a distribution.

3) If fund holdings increase in price but are not sold by the fund manager, the fund's
.Shares increase in price. You can then sell your mutual fund shares for a profit.

Funds will also usually give you a choice either to receive a check for distributions orto

Reinvest the earnings and get more shares.

The competition among funds has led to the launch of newer products, tailor-made to suit

the requirements of investors. Mutual funds now offer products for the entire range of needs

of investors. The encouraging response to index funds and sector funds shows the growing

maturity among investors. Open-end funds, which provide liquidity to investors at daily

NAV related prices, are growing in popularity. The funds have be en adopting technology

to provide good service to investors and with the proposed introduction of electronic funds

transfer and thegrowing trend towards E-Commerce; the efficiency of service will increase

even further.

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 In the coming years mutual funds as saving intermediaries will play a greater role in

bringing the gap between investors and issuers, especially in the area of equity funds ?At

present these funds represents 13% of BSE market capitalization. This is expected to go up

with increasing flows into financial savings, especially the mutual fund with the growth and

stability in the capital market flows into equity funds are expected to go up. A Mutual

Fund is a trust that pools the savings of a number of investors who share a common

financial goal. The money thus collected is then invested in capital market instruments such

as shares, debentures and other securities. The income earned through these investments and

the capital appreciation realized is shared by its unit holders in proportion to the number of

units owned by them. Thus a Mutual Fund is the most suitable investment for the common

man as it offers an opportunity to invest in a diversified, professionally managed basket of

securities at a relatively low cost.

Mutual funds, also referred to as investment companies, offer an alternative investment

choice for individuals with a long-term horizon. The way they operate is that individual

investor money are pooled and invested in many different companies. Assets are

professionally managed to meet various investment objectives. They issue and sell shares to

share holders and also redeem them (buy them back) upon request. Prices of shares are set

daily at the close of business, based on the value of all investments in the mutual funds

portfolio. Their major advantages are diversification and professional management, which

are not readily available to small investors outside the mutual fund arena. Money market

mutual funds are short-term funds. They invest in short-term cash and cash equivalent

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instruments, such as Treasurybills,certificates of deposit, and short-term notes. Mutual

funds may own Mutual and bonds of many different companies.

A mutual fund is the ideal investment vehicle for todays complex and modern financial

scenario. Markets for equity shares, bonds and other fixed income instruments, real estate,

derivatives and other assets have become mature and information driven. Price changes in

these assets are driven by global events occurring in faraway places. A typical individual is

unlikely to have the knowledge, skills, inclination and time to keep track of events,

understand their implications and act speedily. An individual also finds it difficult to keep

track of ownership of his assets, investments, brokerage dues and bank transactions etc.

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 History of mutual fund

In 1924 three Boston securities executives pooled their money together to create the first

mutual fund. The idea of pooling money together for investing purposes started in Europe in

the mid-1800s. The first pooled fund in the U.S was created in 1893 for the faculty and staff

of Harvard University on March 21st, 1924 the first official mutual fund was born. It was

called the Massachusetts Investors Trust.

However in India UTI was the first to introduce mutual funds in the Indian markets and it

commenced its operations from July 1964, Government allowed public sector banks and

institutions to set up mutual funds.

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In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The

objectives of SEBI are to protect the interest of investors in securities and to promote the

development of and to regulate the securities market.

As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual

funds to protect the interest of the investors. SEBI notified regulations for the mutual funds

in1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter

the capital market. The regulations were fully revised in 1996 and have been amended

thereafter from time to time. SEBI has also issued guidelines to the mutual funds from time

to time to protect the interests of investors.

All mutual funds whether promoted by public sector or private sector entities including

those promoted by foreign entities are governed by the same set of Regulations. There is no

distinction in regulatory requirements for these mutual funds and all are subject to

monitoring and inspections by SEBI. The risks associated with the schemes launched by the

mutual funds sponsored by these entities are of similar type. It may be mentioned here that

Unit Trust of India (UTI) is not registered with SEBI as a mutual fund (as on January15,

2002. The end of millennium marks 36 years of existence of mutual funds in our country.

The ride through these 36 years is not been smooth. Investor opinion is still divided. While

some are for mutual funds others are against it.

MUTUAL FUND SCHEMES

Mutual funds offer a variety of schemes to investor so as to provide steady income or

growth or both. They differ according to the investment policies. The funds like individual
investor have different goals. Of the investor who will first ascertain his investment

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objectives, thinking that the units of a fund have an investment goal paralleling his
objectives

FUND MUTUAL BASICS:

As you probably know,mutual funds have become extremely popular over the last 20years.
What was once just another obscure financial instrument is now a part of our daily lives.
In fact, too many people, investing means buying mutual funds. After all, it's common

knowledge that investing in mutual funds is (or at least should be) better than simply letting

your cash waste away in a savings account, but, for most people, that's where the

understanding of funds ends. It doesn't help those mutual fund sales people speak a strange

language that, sounding sort of like English, is interspersed with jargon like MER, NAVPS,

load/no-load, etc.

Originally mutual funds were heralded as a way for the little guy to get a piece of the

market. Instead of spending all your free time buried in the financial pages of the

investment Journal, all you have to do is buy a mutual fund and you'd be set on your way to

financial freedom. As you might have guessed, it's not that easy. Mutual funds are an

excellent idea in theory, but, in reality, they haven't always delivered. Not all mutual funds

are created equal, investing in mutual funds isn't as easy as throwing your money at the

first salesperson who solicits your business.

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ADVANTAGE OF MUTUAL FUND

1-Professional Management - The primary advantage of funds (at least theoretically)

is the professional management of your money. Investors purchase funds because they do

not have the time or the expertise to manage their own portfolio. A mutual fund is a

relatively inexpensive way for a small investor to get a full-time manager to make and

monitor investments.

2-Diversification- By owning shares in a mutual fund instead of owning individual

Mutual

Or bonds, your risk is spread out. The idea behind diversification is to invest in a large

number of assets so that a loss in any particular investment is minimized by gains in others.

In other words, the more Mutuals and bonds you own, the less any one of them can hurt you

(think about Enron). Large mutual funds typically own hundreds of different Mutuals in

many different industries. It wouldn't be possible for an investor to build this kind of a

portfolio with a small amount of money.

3-Economies of Scale- Because a mutual fund buys and sells large amounts of
securities at a time, its transaction costs are lower than you as an individual would pay.

4-Liquidity - Just like an individual Mutual, a mutual fund allows you to request that your

shares be converted into cash.

5-Simplicity- Buying a mutual fund is easy.

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 DISADVANTAGES OF MUTUAL FUND

1-Professional Management- Did you notice how we qualified the advantage of

professional management with the word "theoretically"? Many investors debate over

whether or not the so-called professionals are any better than you or I at picking Mutuals.

Management is by no means infallible, and, even if the fund loses money, the manager still

takes his/her cut. .

2-Costs- Mutual funds don't exist solely to make your life easier--all funds are in it for a
Profit. Themutual fund industry is masterful at burying costs under layers of jargon

.Because funds have small holdings in so many different companies, high returns from a

few Investments often don't make much difference on the overall return. Dilution is also the

result of a successful fund getting too big. When money pours into funds that have had

strong Success, the manager often has trouble finding a good investment for all the new

money

3-Taxes- When making decisions about your money, fund managers don't consider your

personal tax situation. For example, when a fund manager sells a security, a capital-gain tax

is triggered, which affects how profitable the individual is from the sale. It might have been

more advantageous for the individual to defer the capital gains liability

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 RISKS INVOLVED IN MUTUAL FUND
In short, how stable is the company or entity to which you lend your money when you

invest? How certain are you that it will be able to pay the interest you are promised, or

repay your principal when the investment matures?

Inflation risk

Changing interest rates affect both equities and bonds in many ways. Investors are reminded

that predicting which way rates will go is rarely successful. A diversified portfolio can

help in offsetting these changes.

Effect of loss of key professional and inability to adopt

An industries key asset is often the personnel who run the business i.e. intellectual

properties of the key employees of the respective companies. Given the ever-changing

complexion of few industries and the high obsolescence levels, availability of qualified,

trained and motivated personnel is very critical for the success of industries in few sectors.

It is, therefore, necessary to attract key personnel and also to retain them to meet the

changing environment and challengesall investments involve some form of risk, which

should be evaluated them potential Rewards when an investment is selected.

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 Managing risk

At times the prices or yields of all the securities in a particular market rise or fall due to

broad outside influences. When this happens, the Mutual prices of an out standing, highly

profitable company and a fledgling corporation may be affected.

This change in price is due to market risk.

Interest rate risk

Sometimes referred to as loss of purchasing power. Whenever inflation sprints forward

faster than the earnings on your investment, you run the risk that you will actually be able to

buy less, not more. Inflation risk also occurs when prices rise faster than your returns.

Credit risk

The sector offers. Failure or inability to attract/retain such qualified key personnel may

impact the prospects of the companies in the particular sector in which the fund invests.

Exchange risks

A number of companies generate revenues in foreign currencies and may have investments

or expenses also denominated in foreign currencies. Changes in exchange rates may,

therefore, have a positive or negative impact on companies which in turn would have an

effect on the investment of the fund.

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 Investment risks

The sectoral fund schemes, investments will be predominantly in equities of select

companies in the particular sectors. Accordingly, the NAV of the schemes are linked to the

equity performance of such companies and may be more volatile than a more diversified

portfolio of equities.

Changes in government policy

Changes in Government policy especially in regard to the tax benefits may impact the

business prospects of the companies leading to an impact on the investments made by the

fund.

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 VARIOUS MUTUAL FUND SCHEME
Mutual Fund Schemes:-

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position,

risk tolerance and return expectations etc. The table below gives an overview into the

existing types of schemes in the Industry.

By Structure

# Open - Ended Schemes

# Close - Ended Schemes

# Interval Schemes

By Investment Objective

Growth Schemes

Income Schemes

Balanced Schemes

Money Market Schemes

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 Types of Mutual Fund

Mutual Funds: Different Types of Funds

No matter what type of investor you are there is bound to be a mutual fund that fits your

style. According to the last count there are over 10,000 mutual funds in North America!

That means there are more mutual funds than Mutuals. It's important to understand that

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each mutual fund has different risks and rewards. In general, the higher the potential return,

the higher the risk of loss. Although some funds are less risky than others, all funds have

some level of risk--it's never possible to diversify away all risk. This is a fact for all

investments.

Each fund has a predetermined investment objective that tailors the fund's assets, regions

of investments, and investment strategies. At the fundamental level, there are three

varieties: of mutual funds 1) Equity funds (Mutual)

2)Fixed-income funds (bonds)

3) Money market funds

All mutual funds are variations of these three asset classes. For example, while equity

Funds that invest in fast-growing companies are known as growth funds, equity funds that

Invest only in companies of the same sector or region is known asspecialty funds. Lets go

over the many different flavors of funds. We'll start with the safest and then Work through

to the more risky.

Money Market Funds

The money market consists of short-term debt instruments, mostly T-bills. This is a safe

Lace to park your money. You won't get great returns, but you won't have to worry about

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losing your principal. A typical return is twice the amount you would earn in a regular

checking/savings account and a little less than the average certificate of deposit (CD).We've

got a whole tutorial on the money market if you'd like to learn more about it.

Bond/Income Funds

Income funds are named appropriately: their purpose is to provide current income on a

steady basis. When referring to mutual funds, the terms "fixed-income," "bond," and"

income" are synonymous. These terms denote funds that invest primarily in government

and corporate debt. While fund holdings may appreciate in value, the primary objective of

these funds is to provide a steady cash flow to investors. As such, the audience for these

funds consists of conservative investors and retirees.

Bond funds are likely to pay higher returns than certificates of deposit and money market

Investments, but bond funds aren't without risk. Because there are many different types of

Bonds, bond funds can vary dramatically depending on where they invest. For example, a

fund specializing in high-yieldjunk bonds is much more risky than a fund that invests in

government securities; also, nearly all bondfunds are subject to interest rate risk, which

means that if rates go up the value of the fund goes down.

Balanced Funds

The objective of these funds is to provide a "balanced" mixture of safety, income, and

capital appreciation. The strategy of balanced funds is to invest in a combination of

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fixedincome and equities. A typical balanced fund might have a weighting of 60% equity

and40% fixed-income. The weighting might also be restricted to a specified maximum or

minimum for each asset class.

A similar type of fund is known as an asset allocation fund. Objectives are similar to those

of a balanced fund, but these kinds of funds typically do not have to hold a specified

percentage of any asset class. The portfolio manager is therefore given freedom to switch

the ratio of asset classes as the economy moves through thebusiness cycle.

Equity Funds

Funds that invest in Mutual represent the largest category of mutual funds. Generally, the

investment objective of this class of funds is long-term capital growth with some income.

There are, however, many different types of equity funds because there are many different

types of equities. A great way to understand the universe of equity funds is to use a style

box, an example of which is below.

The idea is to classify funds based on both the size of the companies invested in and the

investment style of the manager. The term "value" refers to a style of investing that looks

for high quality companies that are out of favor with themarket. These companies are

characterized by low P/E ratios, price-to-book ratios, and high dividend yields, etc.

The opposite of value is growth, which refers to companies that have had (and are expected

to continue to have) strong growth in earnings, sales, and cash flow, etc. A compromise

between value and growth is "blend," which simply refers to companies that are neither

value nor growth Mutuals and so are classified as being somewhere in the middle.

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 For example , a mutual fund that invests in large-cap companies who are in

strong financial shape but have recently seen their share price fall would be placed

in the upper left quadrant of the style box (large and value). The opposite of this

would be a fund that invests in startup technology companies with excellent growth

prospects.

Such a mutual would reside in the bottom right quadrant

Global/International Funds
An international fund (or foreign fund) invests only outside your home country.

Global funds invest anywhere around the world, including your home country.

It's tough to classify these funds as either riskier or safer. On the one hand they tend to be

more volatile and have unique country and/or political risks. But, on the flip side, they can,

as part of a well-balanced portfolio, actually reduce risk by increasing diversification.

Although the world's economies are becoming more inter-related, it is Likely that another

economy somewhere is outperforming the economy of your home Country.

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 Index Funds

The last but certainly not the least important are index funds. This type of mutual fund

replicates the performance of a broad market index such as the sensex and nifty. An investor

in an index fund figures that most managers can't beat the market. An index fund merely

replicates the market return and benefits investors in the form of low fees.

COSTS INVOLVED IN MUTUAL FUND

Mutual Funds: Costs

Costs are the biggest problem with mutual funds. These costs eat into your return, and they

are the main reason why the majority of funds end up with sub-par performance. Whats

even more disturbing is the way the fund industry hides costs through a layer of financial

complexity and jargon. Some critics of the industry say that mutual fund Companies get

away with the fees they charge only because the average investor does not understand what

he/she is paying for.

Fees can be broken down into two categories:

1. Ongoing yearly fees to keep you invested in the fund.

2. Transaction fees paid when you buy or sell shares in a fund (loads)

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 The Expense Ratio

The ongoing expenses of a mutual fund are represented by the expense ratio. This is
sometimes also referred to as themanagement expense ratio (MER). The expense ratio is
composed of the following:

The cost of hiring the fund manager (s) - Also known as the management fee,
This cost is between 0.5% and 1.0% of assets on average. While it sounds small,

This fee ensures that mutual fund managers remain in the countrys top echelon of

Earners. Think about it for aSecond: 1% of 250 million (a small mutual fund) is

2.5 million--fund managers are definitely not going hungry! Its true that paying

Managers is a necessary fee, but dont think that a high fee assures superior Performance.

Administrative costs

These include necessities such as postage, record keeping, customer service, cappuccino

machines, etc. Some funds are excellent at minimizing these costs while others (the ones

with the cappuccino machines in the office) are not. On the whole, expense ratios range

from as low as 0.2% (usually for index funds) to as high as 2.0%. The average equity

mutual fund charges around 1.3%-1.5%. Youll generally pay more for specialty or

international funds, which require more expertise from manager.

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 Buying and Selling

(You can buy somemutual funds no-load) by contacting the fund companies directly. Other

funds are sold through brokers, banks financial planners, or insurance agents. If you buy

through a third party there is a good chance theyll hit you with a sales charge (load). That

being said, more and more funds can be purchased through no-transaction fee programs that

offer funds of many companies. Sometimes referred to as a "fund

supermarket," this service lets you consolidate your holdings and record keeping, and it still

allows you to buy funds without sales charges from many different companies.

Popular examples are Schwabs OneSource, Vanguards Fund Access, and

Fidelitys Funds Network. Many large brokerages have similar offerings. Selling a fund

is as easy as purchasing one. All mutual funds will redeem (buy back) your shares on

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 any business day. In the United States companies must send you the payment within

seven days.

THE VALUES OF YOUR FUND

Net asset value (NAV) , which is a fund's assets minus liabilities, is the value of a mutual

fund. NAV per share is the value of one share in the mutual fund, and it is the number that

is quoted in newspapers. You can basically just think of NAV per share as the price of a

mutual fund. It fluctuates everyday as fund holdings and shares outstanding change.

When you buy shares, you pay the current NAV per share plus any sales front-end load.

When you sell your shares, the fund will pay you NAV less any back-end load .Moses gave

to his follow eternities 10 commandments that were to be followed till: The world of

investments too has several ground rules meant for investors who are novices in their own

right and wish to enter the myriad world of investments. These come in handy for there is

every possibility of losing what one has if due care is not taken.

1. Assess yourself: Self-assessment of ones needs; expectations and risk profile is of prime

importance failing which; one will make more mistakes in putting money in right places

than otherwise. One should identify the degree of risk bearing capacityone has and also

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 clearly state the expectations from the investments. Irrational expectations will only bring

pain.

2. Try to understand where the money is going: It is important to identify the nature

of investment and to know if one is compatible with the investment. One can lose

substantially if one picks the wrong kind of mutual fund. In order to avoid any confusion it

is better to go through the literature such as offer document and fact sheets that mutual fund

companies provide on their funds.

3. One first has to decide what he wants the money for and it is this investment goal

that should be the guiding light for all investments done. It is thus important to know the

risks associated with the fund and align it with the quantum of risk one is willing to take.

One should take a look at the portfolio of the funds for the purpose. Excessive exposure to

any specific sector should be avoided, as it will only add to the risk of the entire portfolio

.Mutual funds invest with a certain ideology such as the "Value Principle" or "Growth

Philosophy". Both have their share of critics but both philosophies work for investors of

different kinds. Identifying the proposed investment philosophy of the fund will give an

insight into the kind of risks that it shall be taking in future.

4. A common investor is limited in the degree of risk that . It is thus of key

importance that there is thought given to the process of investment and to the time horizon

of the intended investment. One should abstain from speculating which in other words

would mean getting out of one fund and investing in another with the intention of making

35
 quick money. One would do well to remember that nobody can perfectly time the market so

staying invested is the best option unless there are compelling reasons to exit.

5. This old age adage is of utmost importance. No matter what the risk profile of a

person is, it is always advisable to diversify the risks associated. So putting ones money in

different asset classes is generally the best option as it averages the risks in each category.

Thus, even investors of equity should be judicious and invest some portion of the

investment in debt. Diversification even in any particular asset class (such as equity, debt)

is good. Not all fund managers have the same acumen of fund management and with

identification of the best man being a tough task; it is good to place money in the hands of

several fund managers. This might reduce the maximum return possible, but will also

reduce the risks.

6. Investing should be a habit and not an exercise undertaken at ones wishes, if

one has to really benefit from them. As we said earlier, since it is extremely difficult to

know when to enter or exit the market, it is important to beat the market by being

systematic. The basic philosophy of Rupee cost averaging would suggest that if one invests

regularly through the ups and downs .of the market, he would stand a better chance of

generating more returns than the market for the entire duration. The SIP s (Systematic

Investment Plans) offered by all funds helps in being systematic. All that one needs to do is

to give post-dated cheques to the fundand thereafter one will not be harried later. The

36
 Automatic investment Plans offered by some funds goes a step further, as the amount can

be directly/electronically transferred from the account of the investment

7. Do your homework:

It is important for all investors to research the avenues available to them irrespective of the

investor category they belong to. This is important because an informed investor is in a

better decision to make right decisions. Having identified the risks associated with the

investment is important and so one should try to know all aspects associated with it. Asking

the intermediaries is one of the ways to take care of the problem.

8. Find the right funds

Finding funds that do not charge many fees is of importance, as the fee charged ultimately

goes from the pocket of the investor. This is even more important for debt funds as the

returns from these funds are not much. Funds that charge more will reduce the yield to the

investor. Finding the right funds is important and one should also use these funds for tax

efficiency. Investors of equity should keep in mind that all dividends are currently tax-free

in India and so their tax liabilities can be reduced if the dividend payout option is used.

Investors of debt will be charged a tax on dividend distribution and so can easily avoid the

payout options.

37
9. Keep track of your investments

Finding the right fund is important but even more important is to keep track of the way they

are performing in the market. If the market is beginning to enter a bearish phase, then

investors of equity too will benefit by switching to debt funds as thelosses can be

minimized. One can always switch back to equity if the equity market starts to show some

buoyancy.

10. Know when to sell your mutual funds :

Knowing when to exit a fund too is of utmost importance. One should book profits
immediately when enough has been earned i.e. the initial expectation from the fund has
been met with. Other factors like non-performance, hike in fee charged and change in any
basic attribute of the fund etc. are some of the reasons for to exit. For more on it, read
" When to say goodbye to your mutual fund .

Investments in mutual funds too are not risk-free and so investments warrant some caution
and careful attention of the investor. Investing in mutual funds can be a dicey business for
people who do not remember to follow these rules diligently, as people are likely to commit
mistakes by being ignorant or adventurous enough to take risks more than what they can
absorb. This is the reason why people would do well to remember these rules before they
set out to invest their hard-earned money.

38
SOME OF THE EXISTING AMC (ASSET MANAGEMENT
COMPANY)
Alliance Mutual Fund

Birla Mutual Fund

BOB Mutual Fund

BOI Mutual Fund

DSP Merrill Lynch Mutual Fund

HDFC Mutual Fund

IDBI Principal Mutual Fund

Indian Bank Mutual Fund

ING Mutual Fund

Kotak Mahindra Mutual Fund

LIC Mutual Fund

Morgan Stanley Mutual Fund

Pioneer ITI Mutual Fund

PNB Mutual Fund

Prudential ICICI Mutual Fund Reliance Capital Mutual Fund SBI

Mutual Fund

Standard Chartered Mutual Fund

Sundaram Mutual Fund

Tata TD Waterhouse Mutual Fun

39
 Taurus Mutual Fund

DEVELOPMENT OF MUTUAL FUND IN INDIA

The mutual fund industry in India started in 1963 with the formation of unit trust of

India at the initiative of government of India and reserve bank of India. The history

Of mutual fund

In India can be divided into four phases:

FIRST PHASE: 1964 87

SECOND PHASE: 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS)

THIRD PHASE:1993 2003 (ENTRY OF PRIVATE SECTOR FUNDS)

FOURTH PHASE: SINCE FEBURARY 2003

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India,

at the initiative of the Government of India and Reserve Bank of India. The history of

mutual funds in India can be broadly divided into four distinct phases

First Phase 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of

Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory

and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from

the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory

and administrative control in place of RBI. The first scheme launched by UTI was Unit

Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under management.

40
Second Phase 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non-

UTI, public sector mutual funds set up by public sector banks and Life Insurance

Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual

Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canara

bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank

Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC

established its mutual fund in June 1989 while GIC had set up its mutual fund in December

1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,

004 crores.

Third Phase 1993-2003 (Entry of Private Sector Funds) with the entry of private

sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian

investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual

Fund Regulations came into being, under which all mutual funds, except UTI were to be

registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin

Templeton) was the first private sector mutual fund registered in July 1993. The 1993

SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised

Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual

Fund) Regulations 1996. The number of mutual fund houses went on increasing, with

many foreign mutual funds setting up funds in India and also the industry has witnessed

several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds

41
with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of

assets under management was way ahead of other mutual funds.

Fourth Phase since February 2003 In February 2003, following the repeal of the Unit
Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified

Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 crores

as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured

return and certain other schemes. The Specified Undertaking of Unit Trust of India,

functioning under an administrator and under the rules framed by Government of India and

does not come under the purview of the Mutual Fund Regulations. The second is the UTI

Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and

functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI

which had in March 2000 more than Rs.76, 000 crores of assets under management and

with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund

Regulations, and with recent mergers taking place among different privatesector funds, the

mutual fund industry has entered its current phase of consolidation and growth.

42
GRAPHICAL REPRESENTATION

43
 MUTUAL FUND - ORGANIZATIONS

There are many entities involved and the diagram below illustrates the Organizational
set up of a mutual fund:

44
 REGULATORY BODIES

Financial System is basically responsible for the major up and downs in the Economy. So,

there are some regulatory bodies on it which ensures effectiveness In the management of

Fund of the investors and transparency in the transactions.

45
FLOW CHART

46
 FREQUENTLY USED TERMS IN MUTUAL FUND
NET ASSET VALUE

Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per

unit NAV is the net asset value of the scheme divided by the number of units outstanding

on the Valuation Date.

SALE PRICE

The price you pay when you invest in a scheme. Also called Offer Price. It may include a

sales load.

47
 REPURCHASE PRICE

The price at which units under open-ended schemes are repurchased by the Mutual Fund.

Such prices are NAV related.

REDEMPTION PRICE

The price at which close-ended schemes redeem their units on maturity. Such prices are

NAV related.

SALES LOAD

A charge collected by a scheme when it sells the units. Also called, Front-end load.

Schemes that do not charge a load are called No Load schemes.

REPURCHASE OR BACK END LOAD

A charge collected by a scheme when it buys back the units from the Unit holders.

48
 STRUCTURE OF INDIAN MUTUAL FUND

INDIAN MUTUAL FUND INDUSTRY

The rising Indian mutual funds industry probably never had it better, as far as the entry of

individual or retail investors is concerned. The industrys total AUM in December 2006

stood at a hefty Rs 3, 23,597 crore, with a total of2.79 crore depositor folios, of which 2.31

crore depositor folios had invested inequity schemes. The share of direct investors, on the

other hand, has been dropping, stating that more retail investors see mutual funds as a

preferred route for investing in the markets.

Existing and new market players as well as Exchange Traded Funds are likely to hit the

market in the coming months with a flurry of new Mutual Funds schemes. An action packed

first quarter of 2007 was forecasted to witness at Least 20 new schemes which are waiting

on the sidelines to be launched.

49
 Market share *(%) of mutual funds companies

PERFORMANCE SNAPSHOT!!!

The year 2006 scored high in terms of both returns and volatility. The rising Indian mutual

funds industry saw its best, as far as the entry of individual or retail investors is concerned.

In 2006, out of the 159 diversified equity funds (includes diversified equity, midcap, and

equity tax saving schemes):

20 funds (13%) out-performed the Sensex 50 funds (37%) out-performed the

Nifty

50
 The best returns generated were up to 58.3% (Tata Infrastructure Fund)

Equity Diversified funds churned out an average 33.2% return, which Comprise of

72 funds in this category comprising of total 135 funds

Infrastructure funds stole the limelight this year with the top three Performers

being Infrastructure Fund.

51
 TOTAL ASSET MANAGED BY VARIOUS FUND
HOUSES :
The amount of assets managed by AMCs varies every year. Following is the table that
depicts the total amount of asset managed by the well known AMCs in India. It also shows
the ranking of AMCs for the year 2007, based on the above mentioned parameter.

FUND HOUSE JAN 2009 JAN 2008 DEC 2008

Reliance MF 39,020 16,702 36,928

UTI MF 37,535 25,617 38,109

Prudential ICICI 34,746 22,635 33,305

HDFC MF 31,425 18,591 29,635
Franklin Templeton 23,908 18,153 23,403

Birla Sun Life 21,190 13,797 17,054

SBI MF 17,552 10,839 15,086

DSP Merrill Lynch 13,440 8,976 13,517

TATA MF 13,222 8,649 12,177

Standard Chartered 12,746 9,480 12,629

Kotak Mahindra 12,674 7,397 12,062

LIC MF 12,237 6,386 11,599

HSBC 12,140 6,288 10,450

Principal 10,333 6,789 10,522

Figures in Rs crores

52
1) Birla Sun life was the best performer in January 2007 and Rs4, 136 crore to
its assets

2) Reliance MF has become the top mutual fund house in the country by adding
a very Impressive Rs2, 092 crore to assets under management

3) Previous Top Fund House UTI MF declined by Rs574 crore and lost
its top position to Reliance

4) SBI MF was able to acquire 7th position by an addition of Rs2, 466 crore 5)

Tata MF gained Rs1, 045 crore and able to secure its position in top

10.

53
 BEST EQUITY MUTUAL FUNDS:
(As on 27 th April, 2009)

Following is the ranking of the best mutual funds and their NAVs as on 27thApril, 2009.
The rankings are based on 1 year returns of the Equity Mutual Funds available in the
market.

54
 MUTUAL FUND AT A GLANCE
A mutual fund is professionally managed firm of collective instrument that pools

money from many investors and invest it in Mutual, bonds etc.

A mutual fund is a trust registered with securities and exchange board of India.

Value of the fund

The value of each unit of mutual fund, known as net asset value (NAV)

Formula:

Net asset scheme / No. of unit outstanding

METHODS OF MUTUAL FUND

One time payment

Systematic investment plan

55
 SYSTEMATIC INVESTMENT PLAN:
Under this a fixed sum is invested each month on a fixed date of a month.

Payment is through post dated cheque or direct debit facilities

The investor gets the fewer units when the NAV is high and gets the more units

when the NAV is low.

56
WORKING OF MUTUAL FUND

57
Objective of the study

58
 To study the mutual fund industry in detail.

To study the investment procedure in detail.

To find out the market risk of sip plan.

To aware the client about mutual fund investment.

To suggest better investment option according to market behavior to the client.

Expansion of mutual fund investment.

To remove the past image of mutual fund from the mind of investors.

To show the beneficiary aspect of mutual fund.

To give the updated information to the investors about the high return and less risk

fund.

59
 Scope of the study
Scope of Mutual Funds has grown enormously over the years. In the first age of mutual

funds, when the investment management companies started to offer mutual funds, choices

were few. Even though people invested their money in mutual funds as these funds offered

them diversified investment option for the first time. By investing in these funds they were

able to diversify their investment in common Mutuals, preferred Mutuals, bonds and other

financial securities. At the same time they also enjoyed the advantage of liquidity. With

Mutual Funds, they got the scope of easy access to their invested funds on requirement.

But, in todays world, Scope of Mutual Funds has become so wide, that people sometimes

take long time to decide the mutual fund type, they are going to invest in. Several

Investment Management Companies have emerged over the years, who offer various types

of Mutual Funds, Each type carrying unique characteristics and different beneficial features.

60
 Research Methodology

1. Research Design:

A research design is a pattern or an outline of a research projects working. It is a statement

of only the essential element of a study, those that provide the basic guidelines for the

details of the project. It comprises a series of prior decision that taken together provide

master plans for executing a research projects.

A research design serves as a bridge between what has been established i.e., the research

objectives and what is to be done, in conduct of the study to relish those objectives. If there

were no research design, the research would have only foggy notions as about what is to be

done.

I have used of Exploratory Type. The research is of both qualitative as well as

quantitative type.

2. Unit of Analysis:

Investors

Characteristics of interest:

Clients knowledge about Mutual Fund.

Clients knowledge about Reliance.

Clients interest in getting knowledge of Mutual Fund.

61
 Clients willingness to deal in Mutual Fund with Reliance.

Clients preference in selecting tax saving instrument of investment.

Clients preference in selecting dealer.

3. Sources of Data:

Primary Source :

The primary data is collected using sampling method and by survey using questionnaire.

Secondary Source :

Secondary data includes information regarding present market scenario, Information

regarding Mutual Funds and competitors are collected by internet, Magazines and

Newspaper and books.

4. Sample Planning:

Sample Size: 50 units.

Sample Extent: Lucknow city.

5. Sample design:

A sample design is a definite plan for obtaining a sample from a given population. It refers

to the technique or method the researcher would adopt in selecting items for the sample.

62
 I have used convenience sampling method

6. Data collection method:

I have used survey method to collect the data.

Questionnaire plan: I have used structured for gathering the required data

through contacting respondent personally

7. Type of information:

I have collected facts, awareness, attitude, future action plan and reason using

questionnaire.

8. Type of questions:

Close ended questions for dichotomous.

Multiple choice type

9. Data Analysis and Interpretation:

Data analysis is based on the data collected by way of questionnaires. The data is

tabulated and frequency distribution chart is prepared.

63
 Use of the Project
Through this C can take the way that in which direction they should go for

promoting mutual fund.

Through this project (Awareness of Client towards Mutual Fund) we can know

about the securities market.

We can know that how many investors are aware about the mutual fund.

We can know that in which type of securities, people want to invest and why.

We can know that if investors dont want to invest in mutual fund so what the

reason behind that is.

We can aware the investors about mutual funds beneficiary schemes.

We can know about the market potential.

By this project we can know that, which fund is growing up and which fund is

going down.

By this we can know about the co.s that provide the mutual fund investment

facilities.

We can know about the Reliance Mutual fund co. and its working.

We can know about the mutual fund AMC (Asset Management Company)

64
 Importance of the study
Mutual funds offer inexperienced and experienced investors---who may not have a

lot of money to invest---the ability to invest in more than just one investment tool

without having to monitor or manage that investment personally and at a reduced

risk.

Every person who have no more knowledge about investment and he want to invest

anywhere so he can invest easily in mutual fund.

One of the mode to invest mutual fund thats SIP (Systematic Investment Plan) is

less risky to invest and every investor want to invest in less price.

Mutual fund is totally depend upon the NAV value (Net Assets Value)

By purchasing a combination of Mutuals, bonds and other securities--rather than just

one single Mutual purchase--their risk is spread out over many fields and

companies, instead of just one.

Purchasing into a mutual fund automatically provides the investor with an

experienced investment manager to oversee their investment. This is because the

mutual fund is composed of different investment securities and requires a competent

professional to oversee it from the onset.

It is one of the easiest ways of investing your saving money

65
 Research analysis and interpretation

MUTUAL FUND ADVISORS SUGGESTION ABOUT INVESTMENT

INTERPRETATION:

Mutual fund advisor will suggest the investors to invest in mutual fund investment more

because it is les risky than any investment. In mutual fund the investor can invest in sip

(systematic investment plan) which is depend upon NAV (net asset value) which is less

risky and whenever investors want to close that scheme they can. And it is profitable

because its profit is based on average basis.

66
 REASONS FOR CHOOSING ABOVE

INTERPRETATION:

After analysis we have got that lots of investors want to invest just for security purpose.

because most of the investors want to secure or their money, so for holding the money they

want to invest in somewhere so that they can safe their money for future .and a persons who

have no knowledge about security market, they can also be invest in mutual funds.

INVESTORS WHO KNOW ABOUT THE MUTUAL FUND SERVICES

67
 PROVIDED BY RELIANCE

INTERPRETATION:

After analysis we have known that most of the investors dont know about the mutual fund

services which has been provided by Reliance just because of publicity, Reliance doesnt

show that it provides mutual fund services along with other services such as: pan card

services, d.p. services, share trading services, IPOs services etc. thats why most of the

peoples are unknown about the Reliance mutual fund services.

68
 INVESTORS INTERESTED TO INVEST IN MUTUAL FUND

INTERPRETATION:

After analysis we have seen that most of the investors are not interested to invest in mutual

fund just because of:

Past image of mutual fund.

Because of unawareness.

They are unaware about the mutual fund benefits.

They dont want to take risk

69
 A INVESTORS WANTS TO INVEST ON WHICH BASIS

INTERPRETATION:

After analysis we have got the result that most of the investors want to invest in any

securities on the basis of rate of return, when they invest in any believable security

so they expected or anticipated that they will got the expected rate of return ,

Some people invest on the basis of safety purpose , some small investors mostly

invest their money for saving and for getting into near future

Businessman mostly invests their money on securities just for saving the tax because

invested money always is tax free

70
 A PERSON WANTS TO TAKE INFORMATION ABOUT MUTUAL
FUND

INTERPRETATION :
By above analysis we can know that most of the clients,

Persons or investors want to know about the mutual fund benefits, schemes, and
Each and every information, because now a days every persons or investors want to

Get information about everything so that on time he can utilize optimum utilization Of

resources in a right way and could get profit.

71
 A PERSON WHO WANT TO DO THE JOB IN RELIANCE
MUTUAL FUND

INTERPRETATION:

After analysis we got that investors dont want to do the job in Reliance because:

Because lots of persons have no time for joining that and there is lack of

management in each dept. of Reliance that is also be reason that persons dont want

to do job in Reliance

Some persons dont want just because of lack of knowledge about investment.

72
 Some persons dont want to do the job in Reliance because they dont want to

expand their business.

Some persons gave no answers on such issues.

A INVESTORS WHO WANT TO ATTEND THE SEMINAR
PROVIDED BY RELIANCE

INTERPRETATION:

By above evaluation we can see that some investors are interested to join the seminar

on mutual fund which has been organized by Reliance because they actually want

to know the actual situation of mutual fund that : benefits ,why this investment exist,

why they should invest over there.

73
Most of the persons dont want to attend seminar because

They have no time for such type of activities.

They dont trust on mutual fund investment.

They think that these all are rubbish thing.

ON WHICH COMPANIES THE CLIENT BELIEVES MORE

74
INTERPRETATION:
We all know that most of the investors or persons are interested to invest in public co. or

government co. in which there is less chance to drop out the invested money while on the

other hand less of the persons are not interested to invest in private sector because there is

more risk than public sectors.

Same as we can see in the above chart that most of the investors want to invest in reliance

co. because investors has made the mind set that we will get always theprofit in investing

over there while only small investors who invest very small amount in security invest in

private co. such as: HDFC,ICICI and Other.

75
 WHY THE CLIENTS BELIEVE ONLY ABOVE CHOOSING FUND

INTERPRETATION:

Most of the investors or clients want to invest in public co. because most of the

clients think that/;

It is risk free means to say there is less risk to invest in that type of funds, that is a

trustworthy co.

Some investors invest just because of good return, peoples perception towards that

co. is that it will never incurred loss and it will not cheat the investors.

Reliance is one of the most powerful and reputed co. even we can say MNC co. so

just because of good positioned in the market investors want to invest over there.

76
CLIENTS WANT TO GET ADVISORY SERVICES FROM RELIANCE

INTERPRETATION:

Investors who have already invested in mutual fund they all want advisory services from

Reliance, in advisory services; we can know NAV (net assets value) of each fund on daily

basis.

So investors want to get those services so that they can take right decision on right time, if

he sees that he is getting loss in investing fund so by this services he canswitch from loss

fund to profitable fund. So all the investors want to get that type of services from Reliance.

CLIENTS ATTITUDE TOWARDS DSP BLACK ROCK FUND WHICH

77
 PROVIDE 100% RETURN NOW A DAYS

INTERPRETATION:

We have seen that most of the investors dont want to invest in dsp black rock fund, which

is international co. , they dont want to invest because they know that now a days the NAV

of this fund is very low approx. (14 -15 rs.) so on this the 100% return is not so hectic for

the org. and market is totally based upon uncertainty and always be fluctuating so he thinks

that may be dspblack rock will not provide same return in future so the investors may get

lost, so they dont want to invest in this. Only those investors would like to invest in this

fund who invests for short term.

78
 INVESTORS WOULD LIKE TO INVEST IN

INTERPRETATION:

We can see that most if the investors want to invest in debt funds because there is a solid

reason behind this is that the debt funds provide the fixed rate of interest to the investors,

there is no risk in that type of funds for the investors.

While only big investors want to invest in equity market because equity fund provide the

dividend according to performance of the org. if there will be profit in org so investors will

get the dividend otherwise they will have to face loss

Thats why investors want to invest in debt funds rather than equity market.

79
WHICH TYPE OF INSTRUMENT CURRENTLY INVESTED IN

INTERPRETATION:

Now a days most of the investors want to invest in others funds such as:

FDs

INSURANCE

Etc.
After that the investors mostly focus on to invest in debt market just for reducing the
risk.

After that they want to invest in equity market for getting more profit.

Then investors want to invest in commodity market just for saving money in near
future

80
 FINDING OF REPORT

1) After getting in depth research s

2) tudy of Reliance, I came to know that Reliance is not much popular as other brands

operating in Lucknow city. Bajaj Allianz, HDFC, ICICI are having much higher

tapped market in respect to mutual funds.

3) Reliance as an investment option in Mutual Fund does not possess much proficiency

and potential customers in Lucknow city. Though the financial advisors advise their

clients to go for Mutual Fund as an investment option. About 42% of advisors

advise their clients to invest in Mutual Funds, followed by investing in Insurance

sector.

4) The advisors after having a deep thought says that it is the Returns that make them

convince their clients to go for investment in mutual funds. 36% of advisors said

that it is the Returns which make a person to invest in Mutual Fund. Followed by

Risk which is quite lesser in other investment options.

5) A huge lot of advisors showed a positive response in dealing of for Mutual Fund.

About 60% of them said that they are interested in dealing for Mutual Funds,

because that results in higher brokerage.

6) As far as Reliance is concerned about 91% of the advisors said that they are not

aware of the services provided by Reliance, including Mutual Fund.

81
7) When asked, 53% of advisors said that they are not interested to work with Reliance

Securities, to the contrary with they dont have any such expansion plans and they

have little knowledge about Reliance.

8) In Lucknow city advisors dont have an appropriate knowledge about Reliance as

an Investment hub.

82
 SWOT ANALYSIS
A type of fundamental analysis of the health of a company by examining its strengths(S),

weakness (W), business opportunity (O), and any threat (T) or dangers it might be exposed

to.

# I. STRENGTHS

Brand strategy : as opposed to some of its competitors (e.g. HSBC), Reliance

ADAG operates a multi-brand strategy. The company operates under numerous

well-known brand names, which allows the company to appeal to many different

segments of the market.

Distribution channel strategy : Reliance is continuously improving the

distribution of its products. Its online and Internet-based access offers a combination

of excellent growth prospects and its retail direct business also saw growth of 27%

in 2002 and

15% in 2003.
Various sources of income : Reliance has many sources of income throughout the

group, and this diversity within the group makes the company more flexible and

resistant to economic and environmental changes.

Large pool of installed capacities.

Experienced managers for large number of Generics.

83
 Large pool of skilled and knowledgeable manpower .

An increasing liberalization of government policies.

# II. WEAKNESS

Emerging markets : since there is more investment demand in the United States,

Japan and the rest of Asia, Reliance should concentrate on these markets, especially

in view of low global interest rates.

Mutual funds are like many other investments without a guaranteed return:there is

always the possibility that the value of your mutual fund will depreciate. Unlike

fixed-income products, such as bonds and Treasury bills, mutual funds experience

price fluctuations along with the stocks that make up the fund. When deciding on a

particj*ular fund to buy, you need to research the risks involved just because a

professional manager is looking after the fund, that doesnt mean the performance

will bestellar.

Fees : In mutual funds, the fees are classified into two categories: shareholder fees

and annual operating fees. The shareholder fees, in the forms of loads and

redemption fees are paid directly by shareholders purchasing or selling the funds.

The annual fund operating fees are charged as an annual percentage usually

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 ranging from 1-3%. These fees are assessed to mutual fund investors regardless of

the performance of the fund. As you can imagine, in years when the fund doesnt

make money, these fees only magnify losses.

III. OPPORTUNITIES

Potential markets : The Indian rural market has great potential. All the major

market leaders consider the segments and real markets for their products. A senior

official in a one of the leading company says foray into rural India already started

and there has been realization that the rural market is both price and quantity

conscious.

Entry of MNCs : Due to multinationals are entering into market job opportunities

are increasing day by day. Also India Mutual Fund majors are tie up with other

financial institutions.

# IV. THREATS

Hedge funds : sometimes referred to as as hot money, are also causing a threat for

mutual funds have gained worldwide notoriety for bringing the markets down. Be it

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a crash in the currency, A stock or A bond market, A usually a hedge fund

prominently figures somewhere in the picture.

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 RECOMMENDATION
There is high potential market. For mutual fund investors Lucknow city but this market

need to bed explored as investors are still hesitated to invest their money in mutual fund.

In Lucknow city, investor has inadequate knowledge of mutual fund, so proper

marketing of various scheme is required, co. should arrange more and more

seminar about mutual fund.

Co. should also provide the knowledge of growth rate and expected growth rate of

mutual fund in India.

Reliance must be concentrate on the management of the co. so that every work can

be done in a proper way.

Reliance must be advertising its tie up co. fund along with their features that the

investors can invest in that type of fund in Reliance.

Reliance must be provided the advice to investors about mutual fund growing fund.

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 CONCLUSION
The awareness level of investors is low who are interested in dealing in

mutual fund :

Most of investors are totally unaware about this investment.

Very less people knows about the service of Reliance.

Past image of mutual fund is not good.

Reliance can promote the investors by advertising, hording, and by interviews to

invest in this fund.

Most of the investors want to invest in public co.s fund just because of safety

purpose.

Most of the investors want to safer side in investment.

Most of the investors want to invest in debt funds because those are the risk free

funds; it gives the interest on investment.

Most of the investors dont know about the mutual funds so they want advisory

services from reliance which could provide them whole information about the

market situation of mutual fund.

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 ANNEXURE
We assure you that all the information that will be collected from you

will remain fully confidential and use only for study purpose.

NAME: ___________________________________

DESIGNATION/ADDRESS: ____________________________________________

EMAIL ID: ______________________ PHONE

NO.:___________________

1) As a financial advisor which investment options you will suggest your

customers:

a) Shares ( )

b) Insurance ( )

c) Mutual fund ( )

d) Fixed deposit ( )
2) Please indicate reason for choosing above :

a) Return ( )

b) Risk ( )

c) Safety ( )

d) Tax benefit ( )

89
 e) Others ( )

3) Do you know about the mutual fund services provided by the Reliance :

a) Yes ( )

b) No ( )

4) Are you interested to invest in mutual fund :

a) Yes ( )

b) No ( )

5) Do you invest your money on which basis :

a) Return ( )

b) Safety ( )
c) Tax saving ( )

d) Others ( )

6) Do you want to collect information about mutual fund investment:

a) Yes ( )b No ( )

90
7) Will you like to work in Reliance Mutual Fund Ltd. , which deals with mutual

fund :

a) Yes ( )

b) No ( )

8) In future will you attend the seminar arranged by Reliance to guide the investors

about mutual fund :

a) Yes ( )

b) No ( )

9) In which co. you believe more :

a) HDFC

b) ICICI

c) Reliance

d) SBI mutual funds

e) Any other fund _________________________

10)Why you believe only such kind of fund :

a) Return ( )

91
 b) Good market position ( )

c) Risk free ( )

d) Any other reason ( )

11)Do you want the advisory services of Reliance :

a) Yes ( )

b) No ( )
12)Now a days DSP black rock fund provides the 100 % return so do you want to

invest in this fund :

a) Yes ( )

b) No ( )

c) If yes/no why ______________________

13)If you have Rs. 100 , in which of these assets classes would you like to invest :

a) Equity ( )

b) Debt ( )

c) Commodities ( )

d) Derivatives ( )

92
14)Which type of instrument are currently invested in :

a) Mutual fund (equities) ( )

b) Debt funds ( )

c) Currency & Commodities ( )

d) Others_____________________

93
 BIBLIOGRAPHY

WEBSITE :

http://www.moneycontrol.com http://www.amfi.com

http://www.Reliance .com//v2/

www.amfiindia.com

MAGAZINES :
S.Gopichand, the finapolis , Reliance Mutual Fund Ltd..,volume 4 , 2010

PunithavathyPandian , Security Analysis And Portfolio Management , Vikas

Publishing House , 2001

Thank you

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