RISK RETURN ANALYSIS AND COMPARATIVE STUDY OF RELIANCE MUTUAL FUND

(A dissertation submitted to “RELIANCE CAPITAL ASSETS MANAGEMENT COMPANY” In partial

fulfillment of the requirement of summer training for the award of degree of MBA

TABLE OF CONTENT

S.No. Page No.

1 INTRODUCTION 27

2 COMPANY PROFILE 39

3 OBJECTIVES OF THE STUDY 33

4 COMPETITORS OF RELIANCE MUTUAL FUND 58

5 RESEARCH METHODOLOGY 59

6 DATA ANALYSIS AND INTERPRETATION 62

7 COMPARATIVE STUDY 85

8 OBSERVATION 94

9 FINDINGS AND SUGGESTIONS 95

10 CONCLUSION 97

11 LIMITATION 61
12 BIBLIOGRAPHY 98

EXECUTIVE SUMMARY

The performance evaluation of mutual fund is a vital matter of concern to the fund managers, investors,
and researchers alike. The core competence of the company is to meet objectives and the needs of the
investors and to provide optimum return for their risk. This study tries to find out the risk and return
allied with the mutual funds.

This project paper is segmented into three sections to explore the link between conventional subjective
and statistical approach of Mutual Fund analysis. To start with, the first section deals with the
introductory part of the paper by giving an overview of the Mutual fund industry and company profile.

This section also talks about the theory of portfolio analysis and the different measures of risk and
return used for the comparison.

The second section details on the need, objective, and the limitations of the study. It also discusses
about the sources and the period for the data collection. It also deals with the data interpretation and
analysis part wherein all the key measures related to risk and return are done with the interpretation of
the results.

In the third section, an attempt is made to analyze and compare the performance of the equity mutual
fund. For this purpose β-value, standard deviation, and risk adjusted performance measures such as
Sharpe ratio, Treynor measure, Jenson Alpha, and Fema measure have been used.
The portfolio analysis of the selected fund has been done by the measure return for the holding period.

At the end, it illustrates the suggestions and findings based on the analysis done in the previous sections
and finally it deals with conclusion part.

MUTUAL FUND OVERVIEW

Mutual fund is an investment company that pools money from small investors and invests in a
variety of securities, such as stocks, bonds and money market instruments. Most open-end Mutual
funds stand ready to buy back (redeem) its shares at their current net asset value, which depends on
the total market value of the fund's investment portfolio at the time of redemption. Most open-
end Mutual funds continuously offer new shares to investors. It is also known as an open-end
investment company, to differentiate it from a closed-end investment company.

Mutual funds invest pooled cash of many investors to meet the fund's stated investment objective.
Mutual funds stand ready to sell and redeem their shares at any time at the fund’s current net asset
value: total fund assets divided by shares outstanding.

INVEST THEIR INVEST IN VARIETY OF

STOCKS/BONDS
MONEY
MUTUAL FUND SHEMES

MARKET (FLUCTUATIONS)
INVESTOR

PROFIT/LOSS FORM PROFIT/LOSS FROM

PORTFOLIO OF INDIVIDUAL
INVESTMENT