Reliance money

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. Capital market provides the framework in which savings and investments take place, it facilitate savers to invest their savings in industrial or commercial activities. The capital market consists of primary and secondary segments. Capital market plays a major role in Indian financial system. There are many Instruments like Share, Debentures, Bonds, etc, Intermediates like Brokers, Agents, Sub Brokers etc, Regulators like SEBI, etc. Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Assets Under Management (AUM) of Rs. 59,143 crores (AUM as on 31st May 2008) and an investor base of over 3.3million. Reliance Mutual Fund, is a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest growing mutual funds in the country. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 115 cities across the country. 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

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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.

Scope of the study

This study helps in understanding the crucial role of mutual funds in Indian market. the study Equity schemes of Reliance Mutual Fund were scanned whose corpus value is more than 500 cr. to compare their performance by calculating risk and return associated with these schemes. An idea of the current market share of various mutual fund companies This study helps in understanding the what factors make investors invest in Reliance mutual Fund

Survey was conducted on Reliance Investors to know the most preferred Equity scheme by the Investors Opportunity to apply the concepts practically, which i learnt in first semester and second semester. Knowledge on the growth and prospects of Equity scheme To study on Mutual Funds Industry.

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Objectives of study: To study the concept mutual funds. To know the Performance of the preferred equity of Reliance Mutual Fund. 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 understand the concept of Mutual Fund its working, mechanism and types traded in India To understand the role that mutual fund plays in the investment market.

Limitations of the study:

Sample size is very small as compared to the total population. The data collection was strictly confined to secondary sources. Primary data was associated with only the survey conducted on the investors. Selection of schemes for study is very difficult because lot of Varieties in equity Schemes Collecting historical NAV is very difficult. Since samples were only 100, the information given by these people may not represent the population view regarding the ailment of investment.

The data collected and analyzed is based on the replies of the investors selected. Any biased information provided may alter the result of the study.

Research methodology of study: 3

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The data was collected in two ways, which are detailed below: Primary Data Secondary Data

PRIMARY DATA: The Data collected for a specific purpose for the first time is Original known as Primary Data. The primary data was basically collected in two different ways, they are: 1) Observation Method 2) Questionnaire Method

In the observation method instead of asking the respondents about the behavior and attitudes, an Observation was done and the data was collected. The Questionnaire method is a powerful tool to collect the information a structured Questionnaire involves in asking the questions in a prearranged order. This research contained a questionnaire that had structured (prearranged order), open ended (free answer questions) and close ended (limited answer can be given) questions. Some were also dichotomous questions i.e. having only two options to answer.

SECONDARY DATA: The data that is collected from the published sources i.e. not originally collected for the first time is called secondary data. During the research the secondary data was collected from various articles published in magazines, newspapers and websites, which are related to the same field.

Sampling method: -

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Sampling size: The sample composition was of 100 individuals from various levels of working and also income.

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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 Bonds Indira vikas patra &Kisan Vikas patra Government securities Money market securities (i.e. treasury bill, commercial paper, certificate of Deposit etc)

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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

INTRODUCTION TO THE MUTUAL FUND 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.

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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 appreciations realized are 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 fund flow chart: -

STRUCTURE OF MUTUAL FUND IN INDIA:

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Trustees

SEBI

Sponsor

Operations

AMC

Fund Manager

Market / Sales

Mutual Fund

Schemes

Investor

GROWTH OF MUTUAL FUNDS:

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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 February 2003 First phase: An Act of Parliament established Unit Trust of India (UTI) on 1963. 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. Second phase 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. Third Phase 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.

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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 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 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 Ltd, 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 private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes. As at the end of March 2008, which manage assets of Rs.326388 crores. THE DIFFERENT TYPES OF MUTUAL FUNDS: Schemes according to Maturity Period:
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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. 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:
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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. 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
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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 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
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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 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
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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 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. 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. 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
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down with your investments advisers who will help you to re-arrange your portfolio to suit your altered life style. 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 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. 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

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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. 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:

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.

FREQUENTLY USED TERMS: -

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Net Asset Value (NAV): 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. NAV = Market/Fair Value of schemes investments+ Receivables+ Accrued income + Other Assets- Accrued expenses- Payables- Other Liabilities Numbers of Units outstanding Sale Price: Sale Price is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales load. Repurchase Price: Repurchase Price is the price at which a close-ended scheme repurchases its units and it may include a back-end load. This is also called Bid Price.

Redemption Price: Redemption Price is the price at which open-ended schemes repurchase their units and

close-ended schemes redeem their units on maturity. Such prices are NAV related. Sales Load: Sales Load is a charge collected by a scheme when it sells the units. Also called, Frontend load. Schemes that do not charge a load are called No Load schemes. Repurchase or Back-end Load: Repurchase or Back-end Load is a charge collected by a scheme when it buys back the units from the unit holders.
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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), 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),
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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. 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
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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.

Organization Profile
RELIANCE MONEY
Introduction: Reliance Money is a group company of Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.

Reliance Money is a single window, enabling you to access, a wide range of financial products and services including Equity, Equity & Commodity Derivatives, Mutual Funds, IPOs,
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Life & General Insurance products, Offshore Investments, Money Transfer, Money Changing and Credit Cards. The Companys Endeavour is to change the way India transacts in financial markets and avails financial services.

Reliance Money is the most cost-effective, convenient and secure way to transact in a wide range of financial products and services. The highlights of Reliance Moneys are:

Cost-effective: The fee charged by the affiliates of Reliance Money, through whom the transaction can be placed, is among the lowest charged in the present scenario.

Convenience: The flexibility to access Reliance Money services in multiple ways; through the internet, Transaction Kiosks, Call and Transact (phone) or seek assistance through our Business Partners.

Security: Reliance Money provides secure access through an electronic token that flashes a unique security number every 32 seconds (and ensures that the number used for the earlier transaction is discarded). This number works as a third level password that keeps your account extra safe.

Single window for multiple products: Reliance Money, through its affiliates/partners, facilitates transactions in Equity & Commodity Derivatives, Offshore investments, Mutual Funds, IPOs, Life Insurance and General Insurance products.

3 in 1 integrated access: Reliance Money offers integrated access to your banking, trading and demat account. You can transact without the hassle of writing cheques.

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Demat Account with Reliance Capital: Through Reliance Money, you get a hassle-free demat account with Reliance Capital. The Annual Maintenance Charge for the Demat Account is just Rs.50/-per annum.

Other Services: Through the portal www.reliancemoney.com, Reliance Money provides: Reliable research, including views of external experts with an enviable track record. Live news from Reuters and Dow jones. CEOs/experts views on the economy and financial markets. The Personal Finance section provides tools that help you plan your investments, retirement, tax etc. Analyze your risk profile through the Risk Analyzer. Gets a suitable investment portfolio using the Asset Allocator.

Products and Services Offered by Reliance Money: Reliance Money is a single window, enabling you to access, a wide range of financial products and services including following products: Equity, Derivatives, Commodity, Mutual Funds, IPOs, Forex Life Insurance General Insurance products, Portfolio management service (PMS)

Equity: Equity is a share in the ownership of a company. It represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company increases. The terms share, equity and stock mean the same thing and can be used
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interchangeably. Holding a company's stock means that you are one of the many owners (shareholders) of a company, and, as such, you have a claim (to the extent of your holding) to everything the company owns. Yes, this means that technically, you own a portion of every piece of furniture; every trademark; every contract, etc. of the company. As an owner, you are entitled to your share of the company's earnings as well as any voting rights attached to the stock.

Another extremely important feature of equity is its limited liability, which means that, as a part-owner of the company, you are not personally liable if the company is not able to pay its debts. In case of other entities such as partnerships, if the partnership goes bankrupt, the partners are personally liable towards the creditors/lenders and they may have to sell off their personal assets like their house, car, furniture, etc., to make good the loss. In case of holding equity shares, the maximum value you can lose is the value of your investment.

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 your

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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
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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 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.
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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. Dividend income: -Companies report their profits earned on a quarterly basis. Based on the quantum of profits, companies declare dividends to distribute a portion of these profits to their shareholders. Dividends are declared as a percentage of the shares face value. For instance, if a company declares a dividend of 10 per cent and its share has a face value of Rs 10, it implies that it will pay Re 1 per share as dividend (Rs 10 x 10 per cent). As a shareholder, you will be entitled to dividend to the extent of your share holding. For instance, in this case if you hold 500 shares, you will get a dividend of Rs 500 (500 shares x Re 1 per share). However, dividend income is uncertain. Companies dont declare dividends regularly. Dividends are declared only when there are profits available for distribution. Bonus shares: - When you purchase shares of a company, you become a shareholder of the company. When the company is doing well, it may declare a bonus issue. This means that the company will issue fresh equity shares to its existing shareholders, for free. As a shareholder, you will be entitled to receive bonus shares in proportion to your holding in the company. For instance, if the company declares a bonus in the ratio of 1:2 (this means it will issue one share for every two shares you hold) and if you hold 100 shares, you will be entitled to 50 shares as a bonus.

Derivatives: Derivatives, as the name suggests, are financial instruments that derive their value from an underlying security or asset. The underlying could be equity shares or an index, a
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commodity, a currency or the exchange rate, bonds, etc. Sounds complicated? In a way, it is. But once you are clear about how a derivative product derives its value from an underlying asset and yet has a price and an identity of its own, it will become just another financial product to you. Then again, derivative products have more variants than any other financial products since they have been created to meet a variety of niche needs.

There are various derivative products, which derive their value from equity shares or an index, a commodity, a currency or the exchange rate, bonds, etc. These derivative products vary according to their structure and terms and conditions. The most popular derivative products are Forwards, Futures, Options, Warrants and Swaps. Some of these are short term in nature while others are long term. For example stock and index options that can be traded on stock exchanges are short term in nature, while options like warrants and rights have a longer term. Commodity: A commodity means rice, wheat, sugar, gold etc. And did you know that you could trade these commodities without owning a piece of the commodity you trade in. Commodities, which you have been eating or using all this years or donning it as a fashion accessory or even running you car with, can be now traded on the Indian exchanges. It has always been traded in the Global exchanges, now it is your turn to experience the power of commodities. The items produced by different producer are considered equivalent if they conform to a predetermined standard. It is this underlying standard or specifications that defines the commodity and not any quality inherent in the particular product. For example, gold of 99.95% purity is the same from a trading point-of-view, regardless of which part of the world it was produced in. However, gold of 99.99% purity is different since it has higher purity. Commodities can be agricultural or non-agricultural in nature. In the case of agricultural commodities, the specifications are often more elaborate and include
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stipulations on origin of the commodity, maximum permissible foreign particles, moisture content, etc. Other examples of commodities include Brent Crude Oil, Electrolytic Copper Cathode, Soyabeans, Sugar M-grade, Expeller Mustard Oil, and many more. It should be noted that the value arises from the owner's right to sell rather than the right to use. For example, television sets, automobiles and stereo systems are not commodities since their value is in their use and not in sale. In the Indian context, commodities can be broadly classified under the following categories:

Precious Metals: Such as Gold and Silver Base Metals: Such as Steel, Nickel, Tin, Iron, Copper, Zinc and Lead Energy Products: Such as Crude Oil, Furnace Oil, Natural Gas Plastics & Petrochemicals: Such as Polypropylene (PP), High Density Polyethylene (HDPE) Agricultural Commodities: These are varied and are classified in sub-groups such as: 1. Cereals - like Wheat, Maize, Rice 2. Pulses - like Chana (Gram), Urad (Black Matpe), Lemon Tur, Masoor, Field Peas, etc. 3. Oil Complex - like Soyabeans, Soy Oil and Soy Meal, Mustard Seed and Oil, Crude Palm Oil, etc 4. Spices - like Turmeric, Chilli, Black Pepper, Cumin, Cardamom 5. Plantation Crops like Coffee, Cashew, Rubber Fibres - like Cotton, Jute, Mulberry Cocoons, etc. 6. Others - like Guar Seed, Guar Gum, Sugar, Gur (Jaggery), Mentha Oil, Potato, etc.

Mutual Funds: A mutual fund is an entity, which offers a number of investment schemes with different investment objectives. An investor interested in investing in these schemes needs to assess which scheme has an investment objective that matches his, to make his selection
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from among the available schemes. Mutual funds are well-structured and closely-regulated entities, which hire investment professionals to invest and manage investors funds. Mutual funds issue units to each investor based on the amount invested. Units of mutual funds are similar to shares issued by companies. For instance, if an investor invests Rs 5,000 in a new scheme of a mutual fund, which is offering units at Rs 10 per unit, he will receive 500 units in the scheme (Rs 5,000 / Rs 10). The mutual fund invests the money collected from unit-holders on their behalf. Income earned on these investments is distributed by the mutual fund among its investors in proportion to their holding in the scheme. For instance, taking the above example forward, if the scheme issues a total of 1 lakh units and earns a total income of Rs 1 lakh in a particular period, it would have earned Re 1 per unit issued (Rs 1 lakh / 1 lakh units). The investor, who had applied for 500 units, will be entitled to receive Rs 500 (income earned per unit Re 1 x 500 units). From just two scheme types (equity scheme and debt scheme) offered when the mutual fund industry was conceived more than four decades ago, today, mutual funds offer a plethora of scheme types with different investment strategies. Consider equity schemes. From just one scheme type, there are, today, more than 10 types of schemes, each offering a unique investment strategy. Similarly, in case of debt schemes, from just a single debt scheme-type, presently, there are more than 6 scheme types. Each debt scheme focuses on specific debt securities with specified tenures. For instance, a long-term gilt scheme will invest in government securities with long tenures (exceeding 7-8 years) while a short-term floating rate fund will invest in debt securities with short tenures (1-3 years) whose coupon rates are reset at regular intervals depending on change in prevailing interest rates. In addition, there are schemes, which combine debt and equity to adopt different investment strategies (balanced funds, MIPs, etc.). IPOs: When private companies i.e. companies that are wholly owned by their promoters, invite the public to subscribe to their shares, this issue of shares is called an Initial Public
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Offering (IPO). The shares issued could be in the form of fresh equity and/or the promoters sell a portion of their equity to the public. These shares are then listed on a stock exchange where they can be bought and sold by investors. IPOs are a very popular way of investing in the stock market as they allow investors a simple entry route to buying stocks. Merchant Banker or Book Running Lead Managers (BRLM) to the issue, Syndicate Members, Underwriters to issue, Registrars to issue, Bankers to issue, Auditors etc. are the intermediaries to an issue. Contact details of all intermediaries like, contact person, Telephone number, address, email address etc are disclosed by the issuer. While the issue is open, all investors must submit their bids along with payment for the quantity of shares they have bid for. The payment due is calculated at their respective bid prices. One of the lead managers, who is called the book runner, maintains an order book in which the investors demand and price bids are registered. Once the issue period is over, the book runner demarcates a cut off price, i.e., a price at which the issue will be fully subscribed on the basis of the quantity and price bids received. All bids that are below the cut off price are ignored and investors who have bid at the cut off price or above can purchase shares that have been allotted to them at the cut-off price. SEBI guidelines permit only retail individual investors to apply at the cut off price. If you wish to take a loan in order to buy shares in an IPO, you can do so from banks and finance companies. They provide finance for subscribing to shares in the public / rights issues of reputed companies that are/will be listed as per the listing requirements of NSE / BSE. In order to avail of this loan you will be charged interest for the period for which you utilize the funds, i.e. from the date of closure of the issue till the date of the refund of money (in case of no shares being issued) or the repayment of the loan. You will also be charged a processing fee that is either a small fixed amount or a percentage of the amount funded. Lastly, the loan amount offered is usually about 50 per cent of the total value of your application bid and you will be required to put up the balance (your contribution is called margin money) of the application money.
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Forex: Forex, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another. Traders in the FOREX market wish to purchase or sell one currency for another with the hope of making a profit when the value of the currencies changes in favor of the investor, whether from market news or events those take place in the world.

The foreign exchange (FX or FOREX) market is the market where exchange rates are determined. Exchange rates are the mechanisms by which world currencies are tied together in the global marketplace, providing the price of one currency in terms of another.

For example, the U.S. dollar/Euro exchange rate is the price of a Euro expressed in U.S. dollars. On March 11, 2006 this exchange rate was 1.19 U.S. dollars per Euro, or, in market notation, 1.19 USD/Euro.

An exchange rate is just a price. The price of a liter of milk, for example, is Indian Rs 20, or 20 INR/milk, using the above exchange rate market notation. When we price exchange rates, the denominator refers specifically to one unit of a currency. Like in any other market, demand and supply determine the price of a currency. At any point in time, in a given country, the exchange rate is determined by the interaction of the demand for foreign currency and the corresponding supply of foreign currency. Thus, the exchange rate is an equilibrium price determined by supply and demand considerations.

Life Insurance: Life insurance helps Provide financial assurance & security for your dependents & loved ones. It is an important part of the financial planning bouquet for all individuals &
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families. Life insurance products offer comprehensive financial solutions which besides offering financial security also provide opportunity for saving, investment & tax planning.

General Insurance products: Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first non-life companies to get the license from the IRDA. RGICL offers an exhaustive range of insurance products that covers most risks including Property, Marine, Casualty and Liability. Customer Service: The Company dedicated and highly trained team of dealers at Dial & Trade Desk to execute orders in all the three markets, i.e., equity, commodities and foreign exchange. The Companys dealers are available to accept orders till the respective markets are open. You can call and place an order to trade as follows:

Equity: 9 am to 4 pm Commodities: 9 am to 11.30 pm Foreign exchange: 24 hours

The Company will be happy to assist you with any query/service related request you may have. The Companys Help Desk and Dial & Trade number is 022-39886000. You can also email at customer.support@reliancemoney.co.in In case of any grievances please write to customer.grievance@reliancemoney.co.in

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About

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. 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
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Vision, Mission & Market Strategy Vision statement To be a globally respected wealth creator with an emphasis on customer care and a culture of good corporate governance. Mission statementTo offer unparalleled value by providing the customer transparent, convenient and effective anytime-anywhere integrated financial transaction capability 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

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effective, convenient and secure manner. Reliance Money has introduced several never . before features and thereby changed the way you will invest: 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.
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Reliance Vision 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 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.
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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. 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:

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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. 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.
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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 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.

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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. 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.
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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 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.
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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 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.

PERFORMANCE COMPARISM OF MUTUAL FUND SCHEMES

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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. The following are the equity-diversified schemes in the selected funds. At the current date as 07/01/07 Tables for fund size Reliance Mutual Fund Equity schemes Scheme name Reliance Equity Fund (G) 2777.79 Reliance Equity Opportunities Fund (G) 1978.3 Reliance Growth Fund (G) 5369.89 Reliance Vision Fund (G) 2473.68 Reliance Tax Saver (ELSS) Fund (G) 2009.74 09/23/05 ETS 10/08/95 ED 10/08/95 ED 03/07/05 ED 03/07/06 ED Fund size DOI FUND CLASS

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

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Valid Friends/Relative s Newspapers/ Televisions Brokers/Agents Financial Consultants Total 34 28 100 34% 28% 100% Frequency 25 13 Percent 25% 13%

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 34% followed by the financial agents at 28%. 2.Reliance Schemes most preferred by investors Frequency Percent Valid Equity Debt 60 40 60% 40%
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Total 100 100%

3. Which Equity Scheme you prefer the most in Reliance Mutual Fund?

Frequency

Percent

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Reliance Growth Fund Reliance Equity Opportunity Fund Reliance Tax Saver (ELSS) Fund 20 Reliance Equity Fund 15 Reliance Vision Fund Total 23 100 23 100 15 20 30 30

12

12

4. What factors do you consider while investing in mutual fund? Frequency percentage 25 25 21 21
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Safety Rate of return

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Liquidity Tax benefit Flexibility Brand Name 18 12 9 15 100 18 12 9 15 100

5. How would you rate Reliance mutual fund when compared to the other mutual Fund? Frequency Percentage 23 23 33 33
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Reliance MF Franklin Templeton MF

Reliance money
HDFC MF ICICI MF UTI MF Total 10 19 15 100 10 19 15 100

Findings 32% of the Investors have come to know about Reliance mutual fund through Brokers/Agents followed by 28% who have come to know through Financial Consultants

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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 30% of the investors prefer Reliance Growth Fund followed by Reliance Vision Fund and other Schemes. 25% of the investors give most importance to safety followed by Rate of return as it is also important aspect of investors.

Reliance Mutual Fund is Ranked 2nd by the Investors i.e. 23% of them have ranked Reliance as 2nd and Franklin Templeton is Ranked 1st by the investors i.e. 33%

SUGGESTIONS 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
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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 ICICI. 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.

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
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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 companies.

QUESTIONNAIRE

Dear Sir/Madam:

I am pleased to introduce myself as PGDBM student of IMER As a part of curriculum I have undertaken project on Comparative study on performance of Equity Schemes of Reliance
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Mutual Fund . The information provided by you will be strictly kept confidential and used for academic purpose only.

Personal Details:

Name Address Occupation Contact No

: _____________________________________________ : _____________________________________________ : _____________________________________________ : _____________________________________________

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

Friends /Relatives

News papers / magazines

Brokers/Agents

Financial consultants.

Other_________________________

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

Equity Schemes

Debt Scheme

3. Which Equity Scheme you prefer the most in Reliance Mutual Fund?

Reliance Growth

[ ]

Reliance Equity Opportunity Fund

[ ]

Reliance Vision Fund

[ ]

Reliance Equity Fund

[ ]

Reliance Tax Saver (ELSS) Fund

[ ]

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

Safety

Rate of return

Liquidity

Tax benefit

Flexibility

Brand Name
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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

[ ]

Pru ICICI

[ ]

UTI

[ ]

Franklin Templeto

[ ]

HDFC

[ ]

THANK YOU

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