You are on page 1of 56

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 India’s 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
1

Reliance money
Need for the Study:
The study will help the organization in knowing how the Equity schemes of the company’s 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.

2

Reliance money
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

Reliance money
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: -

4

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

5

Negotiable and fixed income securities • • • • • • • Equity shares Preference share Debentures Bonds Indira vikas patra &Kisan Vikas patra Government securities Money market securities (i. Following are the various investment alternatives. certificate of Deposit etc) 6 . 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. commercial paper. time and risk. These alternatives range from financial securities to traditional non-securities investment.Reliance money INTRODUCTION An investment means employment of funds on assets (i.The selection of investment alternatives are depends up on the required level of return and the risk tolerance level. There are mainly four objectives.e. i.e.e. treasury bill. 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 scope and efficiency of Mutual Funds are influenced by overall economic fundamentals. Mutual Funds thus assist the process of financial deepening and intermediation. In the process stock market activities are also significantly influenced by Mutual Funds. the interrelationship between the financial and real sector. They mobilize Funds in the savings market and act as complementary to banking. which play a crucial role in an economy my mobilizing a link between savings and the capital market. market structure. the nature of development of the savings and capital markets. institutional arrangements and overall policy regime. at the same time they also compete with banks and other financial institutions. Therefore the activities of Mutual Funds have both short and long term impact on the savings and capital markets and the national economy.Reliance money 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. 7 .

debentures and other securities. 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: 8 . 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.Reliance money 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.

Reliance money Trustees SEBI Sponsor Operations AMC Fund Manager Market / Sales Mutual Fund Schemes Investor GROWTH OF MUTUAL FUNDS: 9 .

UTI. At the end of 1988 UTI had Rs. under which all mutual funds.since February 2003 First phase: An Act of Parliament established Unit Trust of India (UTI) on 1963. The first scheme launched by UTI was Unit Scheme 1964. Punjab National Bank Mutual Fund (Aug 89). 1993 was the year in which the first Mutual Fund Regulations came into being. LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. 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. Bank of India (Jun 90). a new era started in the Indian mutual fund industry.6. except UTI were to be registered and governed. giving the Indian investors a wider choice of fund families. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. Bank of Baroda Mutual Fund (Oct 92). public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). Indian Bank Mutual Fund (Nov 89).UTI Mutual Fund established in June 1987 followed by Canara bank Mutual Fund (Dec 87).700 crores of assets under management. Also. Third Phase With the entry of private sector funds in 1993. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India.Reliance money  First Phase-1964-87  Second Phase-1987-1993(Entry of Public Sector Funds)  Third Phase-1993-2003(Entry of Private Sector Funds)  Fourth Phase. Second phase – 1987 marked the entry of non. 10 . SBI Mutual Fund was the first non.

The Specified Undertaking of Unit Trust of India. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs. As at the end of January 2003. with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. It is registered with SEBI and functions under the Mutual Fund Regulations.Reliance money The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. 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. which manage assets of Rs. which manage assets of Rs.326388 crores. the assets of US 64 scheme.76. there were 33 mutual funds with total assets of Rs.000 crores of assets under management and with the setting up of a UTI Mutual Fund. The Unit Trust of India with Rs. As at the end of September 2004. PNB.44. following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities.21. As at the end of March 2008.541 crores of assets under management was way ahead of other mutual funds. The number of mutual fund houses went on increasing.153108 crores under 421 schemes.835 crores as at the end of January 2003.29. Fourth Phase – In February 2003. BOB and LIC. the mutual fund industry has entered its current phase of consolidation and growth. The second is the UTI Mutual Fund Ltd.805 crores. there were 29 funds. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. sponsored by SBI. representing broadly. and with recent mergers taking place among different private sector funds. assured return and certain other schemes. 1. THE DIFFERENT TYPES OF MUTUAL FUNDS: Schemes according to Maturity Period: 11 . . conforming to the SEBI Mutual Fund Regulations.

e. These schemes do not have a fixed maturity period.Reliance money A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period. Close-ended Fund/ Scheme A close-ended fund or scheme has a stipulated maturity period e. Open-ended Fund/ Scheme An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. Such schemes may be classified mainly as follows: 12 . The key feature of open-end schemes is liquidity. which are declared on a daily basis. In order to provide an exit route to the investors. or balanced scheme considering its investment objective. 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. either repurchase facility or through listing on stock exchanges.g. 5-7 years. Such schemes may be open-ended or close-ended schemes as described earlier. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices. 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. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i. some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. The fund is open for subscription only during a specified period at the time of launch of the scheme.

These funds are not affected because of fluctuations in equity markets. Such funds have comparatively high risks.Reliance money Growth / Equity Oriented Scheme The aim of growth funds is to provide capital appreciation over the medium to long. These are appropriate for investors looking for moderate growth. 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.term. These schemes provide different options to the investors like dividend option. Income / Debt Oriented Scheme The aim of income funds is to provide regular and steady income to investors. Government securities and money market instruments. capital appreciation. They generally invest 40-60% in 13 . However. The investors must indicate the option in the application form. Such schemes normally invest a major part of their corpus in equities. Such schemes generally invest in fixed income securities such as bonds. etc. Such funds are less risky compared to equity schemes. If the interest rates fall. long-term investors may not bother about these fluctuations. The mutual funds also allow the investors to change the options at a later date. However. 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. and the investors may choose an option depending on their preferences. corporate debentures. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. NAVs of such funds are likely to increase in the short run and vice versa.

etc. commercial paper and inter-bank call money. However. Gilt Fund These funds invest exclusively in government securities. These funds are also affected because of fluctuations in share prices in the stock markets. government securities. certificates of deposit. preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills. Returns on these schemes fluctuate much less compared to other funds. 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. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index. etc These schemes invest in the securities in the same weight age comprising of an index. though not exactly by the same percentage due to some factors known as "tracking error" in technical terms.Reliance money equity and debt instruments. NAVs of such funds are likely to be less volatile compared to pure equity funds. Government securities have no default risk. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. Money Market or Liquid Fund These funds are also income funds and their aim is to provide easy liquidity. S&P NSE 50 index (Nifty). Necessary disclosures in this regard are made in the offer 14 .

10 and those 15 .10. These schemes are growth oriented and invest pre-dominantly in equities. they are more risky compared to diversified funds.10. which invest in the securities of only those sectors or industries as specified in the offer documents. Sector specific funds/schemes These are the funds/schemes. Pension schemes launched by the mutual funds also offer tax benefits. 1961 as the Government offers tax incentives for investment in specified avenues. a charge will be payable. They may also seek advice of an expert. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. Fast Moving Consumer Goods (FMCG). While these funds may give higher returns. Load or no-load Fund A Load Fund is one that charges a percentage of NAV for entry or exit. Pharmaceuticals. Equity Linked Savings Schemes (ELSS). which are traded on the stock exchanges. If the entry as well as exit load charged is 1%. The returns in these funds are dependent on the performance of the respective sectors/industries. Their growth opportunities and risks associated are like any equity-oriented scheme.g. then the investors who buy would be required to pay Rs.g. E. Software. e. Tax Saving Schemes These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act. That is. This charge is used by the mutual fund for marketing and distribution expenses.Reliance money document of the mutual fund scheme. each time one buys or sells units in the fund. There are also exchange traded index funds launched by the mutual funds. Petroleum stocks. etc. Suppose the NAV per unit is Rs.

They also select suitable investment to achieve the objective of the scheme. They have a research team that continuously analyses the performance and prospects of companies. When you enter a new stage in your life. A no-load fund is one that does not charge for entry or exit. • Economies of scale – Because a mutual fund buys and sells large amounts of securities at a time. all you need to do is sit 16 . Efficient funds may give higher returns in spite of loads.Reliance money who offer their units for repurchase to the mutual fund will get only Rs. so you see that it is a continues process that takes time and expertise that will add value to your investment. the investors should also consider the performance track record and service standards of the mutual fund. Advantages of Mutual Fund. which are more important.9. • Professional Management: Qualified professionals manage your money but they are not alone. • Diversification: the Cliché. Really applies to the concept of intelligent investing. It means the investors can enter the fund/scheme at NAV and no additional charges are payable on purchase or sale of units. 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. “Don’t put all your eggs in one basket”. • Choice of schemes: Mutual Fund offers a variety of schemes that will suit individuals needs over a lifetime. its transaction costs are lower than you as an individual would pay. The investors should take the loads into consideration while making investment as these affect their yields/returns.90 per unit. These fund managers are in a better position to manage investments and get a higher return. However.

mutual funds give you the advantage of getting the average unit price over the long-term. for example daily NAVs. making it quick and efficient so that we can get your cash in hand as soon as possible. Mutual funds generally buy and sell securities in large volumes. making it easy for investors to compare one to the other. • Rupees Cost Averaging: Through using this concept of investing the same amount regularly. we may find that it is not possible to buy shares of larger corporations. which allow investors to benefit from lower trading costs. • The Transparency of Mutual Funds: The performance of a mutual fund is reviewed by various publications and rating agencies. And also the dividend received by an investor is tax free in the hands of investors. 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. Once we became part of mutual fund scheme.Reliance money down with your investments advisers who will help you to re-arrange your portfolio to suit your altered life style. Funds are more liquid than most investments in shares. deposits and bonds and the process is standardize. This reduces your risk and also allows you to discipline yourself by actually investing every month or quarterly and not making sporadic investments. The smallest investor can get started on 17 . These investments also get the benefit of indexation. we were provided with regular updates. • Tax benefits: Investments held by investors for a period of 12 months or more qualify for capital gains and will be taxed accordingly. • Affordability: As small investors. • Liquidity: with open-end funds. as well as information on the specific investments made and the fund manager’s strategy and out look of the scheme.

If your fund makes a profit on its sales. you will pay taxes on the income you receive. • Regulations of Mutual Funds: All mutual funds are required to register with SEBI. anyone who invests through a mutual fund runs the risk of losing money. We can invest with a minimum of Rs.Reliance money mutual funds because of the minimal investment requirements. you will pay a sales commission if you buy shares in a Load Fund. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. • Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses. FREQUENTLY USED TERMS: - 18 . financial consultants. They are obliged to follow strict regulations designed to protect investors. Some funds also charge sales commissions or "loads" to compensate brokers. or financial planners. even if you reinvest the money you made. the value of mutual fund shares will go down as well. Even if you don't use a broker or other financial adviser. Disadvantages Of Mutual Fund Mutual funds have their drawbacks and may not be for everyone: • No Guarantees: No investment is risk free. • Taxes: During a typical year. If the entire stock market declines in value. 500 in Systematic Investment Plan (SIP) on a regular basis. All operations are also regularly monitored by the SEBI. no matter how balanced the portfolio. However.

Payables. Repurchase Price: Repurchase Price is the price at which a close-ended scheme repurchases its units and it may include a back-end load. 19   . ‘Frontend’ load. NAV = Market/Fair Value of scheme’s investments+ Receivables+ Accrued income + Other Assets. It may include a sales load. Sales Load: Sales Load is a charge collected by a scheme when it sells the units. This is also called Bid Price. Such prices are NAV related. Also called Offer 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. 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. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.Reliance money  Net Asset Value (NAV): Net Asset Value is the market value of the assets of the scheme minus its liabilities. Also called.Other Liabilities Numbers of Units outstanding Sale Price: Sale Price is the price you pay when you invest in a scheme.Accrued expenses. Schemes that do not charge a load are called ‘No Load’ schemes.

the sponsor. Reliance Fixed Maturity Fund . Reliance NRI Equity Fund (October 2004). Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited. Reliance Liquid Fund (March 1998). The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited.Reliance money About Reliance Capital Asset Management Ltd. Reliance Growth Fund (September 1995) Reliance Income Fund (December 1997).13 crores.30. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12. Reliance Capital Asset Management Limited (RCAM). 20 .Series II (April 2005). Reliance Fixed Term Scheme (March 2003). Reliance Diversified Power Sector Fund (March 2004) Reliance Pharma Fund ( May 2004). Reliance NRI Income Fund (October 2004). Reliance Mutual Fund has launched twenty five Schemes till date. Reliance Floating Rate Fund (August 2004). 1995 and was amended on August 12. 1995.Series I (March 2005). Reliance Index Fund (January 2005). Reliance Media & Entertainment Fund (September 2004). Reliance Monthly Income Plan (December 2003). Pursuant to this IMA. The networth of the Asset Management Company including preference shares as on March 31. Reliance Equity Opportunities Fund (February 2005). 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund. 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. Reliance Medium Term Fund (August 2000). RCAM is authorised to act as Investment Manager of Reliance Mutual Fund. Reliance Banking Fund (May 2003). Reliance Fixed Maturity Fund . 1996. a company registered under the Companies Act. 1997 in line with SEBI (Mutual Funds) Regulations. namely: Reliance Vision Fund (September 1995). Reliance Short Term Fund (December 2002). Reliance Gilt Securities Fund (July 2003). 2005 is Rs.

Its responsibilities include receipt and delivery of securities. Trustees appoint the AMC. Reliance Liquidity Fund (June 2005). RCAM has been registered as a portfolio manager vide SEBI Registration No. it will further ensure that AMC meets the capital adequacy requirements. Reliance Fixed Tenor Fund (November 2005) and Reliance Equity Fund (Feb 2006).Reliance money Reliance Regular Saving Fund (May 2005). INP000000423 and renewed effective 1st August. the systems. Trustees float and market schemes. CUSTODIAN: A custodian handles the investment back office of a mutual fund. 2003. bank and securities accounts are segregated activity wise and there exists systems to prohibit access to inside information of various activities. and segregation of assets between schemes. Sponsors appoint trustees. and their job is to protect the interest of unitholders. which. and secure necessary approvals. collection of income. TRUSTEES: Trustees are like internal regulators in a mutual fund. As per SEBI Regulations. Trustees can be held accountable for financial irregularities in the mutual fund. and reports periodically to them on how the business is being run. It has been ensured that key personnel of the AMC. They check if the AMC’s investments are within defined limits and whether the fund’s assets are protected. distribution of dividends. separately for each such activity. back office. if any. Reliance Tax Saver (ELSS) Fund (July 2005). subsequently seek their approval for the work it does.RCAM has commenced these activities. The sponsor of a mutual fund mutual fund 21 .

REGISTRAR : Registrars. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group. Some fund houses handle such functions in-house.Reliance money cannot act as a custodian to the fund. 22 . in terms of net worth. Mutual Funds. Equity & Commodity Derivatives. ensures that the assets of mutual fund are not in the hands of its sponsor. sending fact sheet and annual reports. handle all investor-related services. Reliance Money is a single window. enabling you to access. formulated in the interest of investors. ranking among the top 3 private sector financial services and banking companies. This condition. also known as transfer agents. a wide range of financial products and services including Equity. IPO’s. This includes issuing and redeeming units. 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.

• 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). Offshore investments. • Convenience: The flexibility to access Reliance Money services in multiple ways. Transaction Kiosks. This number works as a third level password that keeps your account extra safe. • 3 in 1 integrated access: Reliance Money offers integrated access to your banking. You can transact without the hassle of writing cheques.Reliance money Life & General Insurance products. Money Changing and Credit Cards. Offshore Investments. facilitates transactions in Equity & Commodity Derivatives. IPOs. The Company’s Endeavour is to change the way India transacts in financial markets and avails financial services. 23 . through its affiliates/partners. trading and demat account. is among the lowest charged in the present scenario. through whom the transaction can be placed. Mutual Funds. Call and Transact (phone) or seek assistance through our Business Partners. Reliance Money is the most cost-effective. The highlights of Reliance Money’s are: • Cost-effective: The fee charged by the affiliates of Reliance Money. • Single window for multiple products: Reliance Money. through the internet. Life Insurance and General Insurance products. Money Transfer. convenient and secure way to transact in a wide range of financial products and services.

The Annual Maintenance Charge for the Demat Account is just Rs. including views of external experts with an enviable track record. Products and Services Offered by Reliance Money: Reliance Money is a single window. Commodity. Portfolio management service (PMS)  Equity: Equity is a share in the ownership of a company. Forex Life Insurance General Insurance products.   Analyze your risk profile through the Risk Analyzer.com. Mutual Funds. The Personal Finance section provides tools that help you plan your investments. The terms share. retirement. your ownership stake in the company increases. CEOs/experts views on the economy and financial markets. Live news from Reuters and Dow jones. It represents a claim on the company's assets and earnings. Gets a suitable investment portfolio using the Asset Allocator. enabling you to access.Reliance money • Demat Account with Reliance Capital: Through Reliance Money. IPOs. tax etc.50/-per annum. Reliance Money provides:     Reliable research. a wide range of financial products and services including following products:          Equity.reliancemoney. equity and stock mean the same thing and can be used 24 . As you acquire more stock. you get a hassle-free demat account with Reliance Capital. Derivatives. • Other Services: Through the portal www.

you own a portion of every piece of furniture. every contract. every trademark.Reliance money interchangeably. 500/.No matter if you don.s never happened before anywhere in the world! 2. car. These internet-enabled Kiosks bring the market to you. Security Token . ensuring that the number used for an earlier transaction is discarded. Holding a company's stock means that you are one of the many owners (shareholders) of a company. as such. it almost defies belief.and transact as much you want upto Rs.. 1. 1crore or for 2 months (whichever is earlier). Yes. Trading Kiosks . if the partnership goes bankrupt. this means that technically.t have access to a computer or the Internet. You will find exclusive Reliance Money Trading Kiosks at convenient locations throughout your city. portable plastic device flashes a unique number that changes every 36 seconds. etc. furniture. of the company. etc. you have a claim (to the extent of your holding) to everything the company owns. Another extremely important feature of equity is its limited liability. In case of holding equity shares. the partners are personally liable towards the creditors/lenders and they may have to sell off their personal assets like their house. As an owner. It. to make good the loss. Pay a flat fee of Rs. which means that. you are entitled to your share of the company's earnings as well as any voting rights attached to the stock. as a part-owner of the company. 3.Put your money into investments. not into brokerage. In case of other entities such as partnerships. the maximum value you can lose is the value of your investment. Flat Fees instead of Brokerage . This small. This number works over and above your 25 . you are not personally liable if the company is not able to pay its debts.The Reliance Money security token is so hi-tech. wherever you are. and.

5. Capital Market and Commodities Control • CEOs.With our Call N Trade facility. silver.t have to access your computer to trade or invest.You don.added Services: -Reliance Money provides: • Research. 4. market views and stock views from independent experts. serving as a third level of protection that guarantees your account total safety. with an enviable track record • LIVE news from Dow Jones. / experts. views on economy and the financial market • Personal Finance planning tools that help you plan your investments. 7. you can also trade / invest in Commodities (gold.000 per calendar year). tax etc. you can place orders over the phone. Widest Network: Reliance Money has a network of branches all over the country with associates who will assist you with your financial investment requirements.Along with equity. retirement. • 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 26 . Call N Trade . Multiple Offerings . 6. Other value . Derivatives. Forex (RBI allows you to remit US$25. IPOs and Insurance products (Life & General). base metals and other agri commodities to name a few). Mutual Funds.Reliance money normal login and password.

IPOs. 27 . Products and Services A product for every need: Reliance Money is the most comprehensive platform which allows you to invest in Shares. hassle-free and paperless way to invest in Mutual Funds. a unique tool that will help you track your favorite companies. Investing in Mutual Funds: Reliance Money brings you a unique. Simply put. there are no manual processes involved.You also get control over your investments with on-line order confirmations and order status tracking.Reliance money using our Asset Allocator. Insurance and other financial products. news. Once you place a request for investing in a particular fund. Just configure it and get real time quotes. You need no signatures or proof of identity for investing. we offer you a product for almost every investment need. Our technology allows you to detach it from the main screen and place it on your desktop. • Knowledge Centre will help you understand investing and trading basics and also delve into advanced concepts like trading strategies • Market Watch. Your bank funds are automatically debited or credited while simultaneously crediting or debiting your unit holdings. Commodities. Mutual Funds. You get to know the performance of your investments through online updation of your portfolio with current NAVs. views. Forex. Derivatives (Futures & Options). result etc. You can now invest on-line in Mutual Funds through Reliance Money No more filling application forms manually or any going through other paperwork.

Redemption: As with Purchases. For instance. redemptions too can be done online. Dividend income: -Companies report their profits earned on a quarterly basis. are financial instruments that derive their value from an underlying security or asset. you will get a dividend of Rs 500 (500 shares x Re 1 per share). Bonus shares: . Companies don’t declare dividends regularly. for free.When you purchase shares of a company. As a shareholder. it implies that it will pay Re 1 per share as dividend (Rs 10 x 10 per cent). When the company is doing well. a 28 . Switch: You can shift money from one scheme to another in the same mutual fund house. you will be entitled to dividend to the extent of your share holding. as the name suggests. As a shareholder. you become a shareholder of the company.  Derivatives: Derivatives. in this case if you hold 500 shares. with the click of a button. 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. This means that the company will issue fresh equity shares to its existing shareholders. For instance. you will be entitled to receive bonus shares in proportion to your holding in the company. Based on the quantum of profits. it may declare a ‘bonus issue’. companies declare dividends to distribute a portion of these profits to their shareholders. For instance. dividend income is uncertain. Dividends are declared only when there are profits available for distribution. The underlying could be equity shares or an index. you will be entitled to 50 shares as a bonus. Dividends are declared as a percentage of the share’s face value. However. if a company declares a dividend of 10 per cent and its share has a face value of Rs 10.Reliance money 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.

Warrants and Swaps. derivative products have more variants than any other financial products since they have been created to meet a variety of niche needs. Futures. etc. gold of 99. regardless of which part of the world it was produced in. These derivative products vary according to their structure and terms and conditions.95% purity is the same from a trading point-of-view. which derive their value from equity shares or an index. bonds. bonds. It has always been traded in the Global exchanges.Reliance money commodity. it is. In the case of agricultural commodities. For example. The most popular derivative products are Forwards.99% purity is different since it has higher purity. However. There are various derivative products.  Commodity: A commodity means rice. a currency or the exchange rate. it will become just another financial product to you. For example stock and index options that can be traded on stock exchanges are short term in nature. a currency or the exchange rate. can be now traded on the Indian exchanges. etc. Sounds complicated? In a way. The items produced by different producer are considered equivalent if they conform to a predetermined standard. now it is your turn to experience the power of commodities. And did you know that you could trade these commodities without owning a piece of the commodity you trade in. the specifications are often more elaborate and include 29 . sugar. gold etc. Some of these are short term in nature while others are long term. gold of 99. wheat. a commodity. It is this underlying standard or ‘specifications’ that defines the commodity and not any quality inherent in the particular product. Options. which you have been eating or using all this years or donning it as a fashion accessory or even running you car with. 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. while options like warrants and rights have a longer term. Then again. Commodities. Commodities can be agricultural or non-agricultural in nature.

Copper. Expeller Mustard Oil. Rice 2. Soy Oil and Soy Meal. Soyabeans. An investor interested in investing in these schemes needs to assess which scheme has an investment objective that matches his. Iron. Field Peas. etc 4. Others .like Guar Seed. 3. Nickel. television sets. Cashew. etc. Gur (Jaggery). Oil Complex . Other examples of commodities include Brent Crude Oil. Cereals . •  Mutual Funds: A mutual fund is an entity. Sugar. Maize. 6. High Density Polyethylene (HDPE) Agricultural Commodities: These are varied and are classified in sub-groups such as: 1. Guar Gum. Plantation Crops like Coffee. Mulberry Cocoons. Tin. Jute. Cumin. which offers a number of investment schemes with different investment objectives. Natural Gas Plastics & Petrochemicals: Such as Polypropylene (PP). etc. Spices .like Soyabeans. and many more. Mustard Seed and Oil. Mentha Oil. Electrolytic Copper Cathode. For example. Sugar M-grade. Masoor. etc. Cardamom 5. Furnace Oil. Black Pepper. moisture content.like Turmeric. Lemon Tur. automobiles and stereo systems are not commodities since their value is in their use and not in sale. Crude Palm Oil.like Chana (Gram). to make his selection 30 .like Wheat. Chilli. In the Indian context. It should be noted that the value arises from the owner's right to sell rather than the right to use.like Cotton. Urad (Black Matpe). Zinc and Lead Energy Products: Such as Crude Oil. Potato. Pulses . Rubber Fibres . commodities can be broadly classified under the following categories: • • • • Precious Metals: Such as Gold and Silver Base Metals: Such as Steel. etc.Reliance money stipulations on origin of the commodity. maximum permissible foreign particles.

Income earned on these investments is distributed by the mutual fund among its investors in proportion to their holding in the scheme. which hire investment professionals to invest and manage investors’ funds. Consider equity schemes. there are schemes.Reliance money from among the available schemes. it would have earned Re 1 per unit issued (Rs 1 lakh / 1 lakh units). Mutual funds issue units to each investor based on the amount invested.). Mutual funds are well-structured and closely-regulated entities. he will receive 500 units in the scheme (Rs 5. companies that are wholly owned by their promoters. who had applied for 500 units. this issue of shares is called an Initial Public 31 .000 in a new scheme of a mutual fund. there are. invite the public to subscribe to their shares. from just a single debt scheme-type. taking the above example forward. today. in case of debt schemes. mutual funds offer a plethora of scheme types with different investment strategies. there are more than 6 scheme types. For instance. 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.e. etc. Units of mutual funds are similar to shares issued by companies. Each debt scheme focuses on specific debt securities with specified tenures. The investor. For instance. MIPs. which is offering units at Rs 10 per unit. From just one scheme type. For instance. today. more than 10 types of schemes. Similarly. presently. 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.000 / Rs 10). each offering a unique investment strategy. The mutual fund invests the money collected from unit-holders on their behalf. In addition.  IPOs: When private companies i. if an investor invests Rs 5. which combine debt and equity to adopt different investment strategies (balanced funds. if the scheme issues a total of 1 lakh units and earns a total income of Rs 1 lakh in a particular period.

Auditors etc. 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. Bankers to issue. The shares issued could be in the form of fresh equity and/or the promoters sell a portion of their equity to the public. maintains an order book in which the investors demand and price bids are registered.. 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.e. 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. who is called the ‘book runner’. i. Once the issue period is over. 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. Registrars to issue. The payment due is calculated at their respective bid prices. Lastly. One of the lead managers. 32 . a price at which the issue will be fully subscribed on the basis of the quantity and price bids received. Telephone number. Contact details of all intermediaries like. These shares are then listed on a stock exchange where they can be bought and sold by investors. are the intermediaries to an issue. email address etc are disclosed by the issuer. You will also be charged a processing fee that is either a small fixed amount or a percentage of the amount funded. all investors must submit their bids along with payment for the quantity of shares they have bid for. Syndicate Members. SEBI guidelines permit only retail individual investors to apply at the cut off price. IPOs are a very popular way of investing in the stock market as they allow investors a simple entry route to buying stocks.e. Underwriters to issue.Reliance money Offering (IPO). address. While the issue is open. i. If you wish to take a loan in order to buy shares in an IPO. Merchant Banker or Book Running Lead Managers (BRLM) to the issue. the book runner demarcates a cut off price. contact person.

in a given country. At any point in time. whether from market news or events those take place in the world. For example. An exchange rate is just a price. or. On March 11.S.S. The price of a liter of milk. When we price exchange rates. 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. the exchange rate is an equilibrium price determined by supply and demand considerations. 1.S. dollars. is Indian Rs 20. Exchange rates are the mechanisms by which world currencies are tied together in the global marketplace. demand and supply determine the price of a currency.19 U. in market notation. providing the price of one currency in terms of another. 2006 this exchange rate was 1. the U. or Foreign Exchange. the exchange rate is determined by the interaction of the demand for foreign currency and the corresponding supply of foreign currency. for example. the denominator refers specifically to one unit of a currency.  Life Insurance: Life insurance helps Provide financial assurance & security for your dependents & loved ones. using the above exchange rate market notation.19 USD/Euro. dollar/Euro exchange rate is the price of a Euro expressed in U. Thus. dollars per Euro.Reliance money  Forex: Forex. is the simultaneous exchange of one country's currency for that of another. Like in any other market. or 20 INR/milk. The foreign exchange (FX or FOREX) market is the market where exchange rates are determined. It is an important part of the financial planning bouquet for all individuals & 33 .

equity. You can call and place an order to trade as follows: • • • Equity: 9 am to 4 pm Commodities: 9 am to 11.support@reliancemoney.grievance@reliancemoney. Life insurance products offer comprehensive financial solutions which besides offering financial security also provide opportunity for saving.30 pm Foreign exchange: 24 hours The Company will be happy to assist you with any query/service related request you may have.e. i. investment & tax planning.in 34 . You can also email at customer. ♦ Customer Service: The Company dedicated and highly trained team of dealers at Dial & Trade Desk to execute orders in all the three markets.in In case of any grievances please write to customer.Reliance money families. The Company’s dealers are available to accept orders till the respective markets are open.. The Company’s Help Desk and Dial & Trade number is 022-39886000. RGICL offers an exhaustive range of insurance products that covers most risks including Property.  General Insurance products: Reliance General Insurance.co. commodities and foreign exchange. Marine. is one of the first non-life companies to get the license from the IRDA. Casualty and Liability. a Subsidiary of Reliance Capital.co.

RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30.Reliance money About Reliance Mutual Fund Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act. March 2004. 1882 with Reliance Capital Limited (RCL). Limited (RCTCL). 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. March 2004 vide SEBI's letter no. IMD/PSP/4958/2004 date 11th. 1995. 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 35 . as the Trustee. as the Settlor/Sponsor and Reliance Capital Trustee Co. The name of Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund effective 11th.

unbiased advise individual investments. easy-to-understand brokerage/trading cost structure without any riders  Easy access to the financial market through convenient modes of distribution  Sound. safe and secure trading platform/software  Uncomplicated. Derivatives. 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. IPOs and Insurance products (Life & General). Reliance Money is a state-of-theart financial transaction platform. Detail Study about the company The easiest. Commodities and Forex. genuine. All this through one single window. convenient and effective anytime-anywhere integrated financial transaction capability” Marketing strategy. easy-to-understand. 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 statement“To offer unparalleled value by providing the customer transparent.to provide  Simple. which enables you to conduct your financial transactions in cost 36 .Reliance money Vision. Also invest on-line in Mutual Funds.

) 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 money effective. Reliance Tax Saver (ELSS) Fund : (An Open-ended Equity Linked Savings Scheme. Reliance Equity Opportunities Fund : (An Open-Ended Diversified Equity Scheme. 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.) 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. 37 . convenient and secure manner. Reliance Money has introduced several never .

38 . which could approximately be the same as that of Nifty. which could approximately be the same as that of Sensex.) 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.) 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. Reliance NRI Equity Fund : (An open-ended Diversified Equity Scheme. Reliance Growth Fund : (An Open-ended Equity Growth Scheme. with a view to endeavor to generate returns. The Investment Objective under the Sensex plan is to replicate the composition of the Sensex.) The Investment Objective under the Nifty Plan is to replicate the composition of the Nifty.) 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 money Reliance Vision Fund : (An Open-ended Equity Growth Scheme. Reliance Index Fund : (An Open Ended Index Linked Scheme. with a view to endeavor to generate returns.

Short Term Gilt Plan & Long Term Gilt Plan: 39 . Reliance Gilt Securities Fund . Government securities and money market instruments. If the interest rates fall. opportunities of capital appreciation are also limited in such funds. Such schemes generally invest in fixed income securities such as bonds. These funds are not affected because of fluctuations in equity markets. The NAVs of such funds are affected because of change in interest rates in the country.e. Debt Schemes : Reliance Monthly Income Plan : (An Open Ended Fund. However. long term investors may not bother about these fluctuations.Reliance money Debt/Income Schemes The aim of income funds is to provide regular and steady income to investors. upto 20%) in equity. 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. However.Primarily the investment shall be made in debt and money market securities (i. Such funds are less risky compared to equity schemes. 80%) with a small exposure (i. corporate debentures.e. NAVs of such funds are likely to increase in the short run and vice versa.

Accordingly.Reliance money 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. investments shall predominantly be made in Debt and Money Market Instruments. 40 .) 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 Medium Term Fund : (An Open End Income Scheme with no assured returns. investments shall predominantly be made in Debt & Money Instruments. The primary investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly. Reliance Liquid Fund : (Open-ended Liquid Scheme). This income may be complemented by capital appreciation of the portfolio.

The scheme shall also invest in Fixed rate debt Securities (including fixed rate securitised debt. Accordingly. 41 . investments shall predominantly be made in debt Instruments. 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.Reliance money 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). This income may be complimented 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. Reliance Fixed Maturity Fund . This income may be complemented by capital appreciation of the portfolio.Reliance money Reliance Fixed Maturity Fund . Reliance Liquidity Fund : (An Open . investments shall predominantly be made in Debt and Money Market Instruments.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.ended Liquid Scheme) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. 42 . Accordingly.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. Debt Option : The primary investment objective of this plan is to generate optimal returns consistent with moderate level of risk.

Software. 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.g. 43 . Petroleum stocks. e. Here the portfolio is dispersed or spread across the stocks in that particular sector. they are more risky compared to diversified funds. Sector Specific Schemes Sector Funds are specialty funds that invest in stocks falling into a certain sector of the economy.Reliance money 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. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. Pharmaceuticals. The returns in these funds are dependent on the performance of the respective sectors/industries. Fast Moving Consumer Goods (FMCG). Reliance Diversified Power Sector Fund Reliance Diversified Power Sector Scheme is an Open-ended Power Sector Scheme. While these funds may give higher returns. etc. 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.

PERFORMANCE COMPARISM OF MUTUAL FUND SCHEMES 44 .Reliance money 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 media & entertainment 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 Pharma and other associated companies.

68 Reliance Tax Saver (ELSS) Fund (G) 2009. The following are the equity-diversified schemes in the selected funds. The scheme.79 Reliance Equity Opportunities Fund (G) 1978. Sources from Investors came to know about Reliance Mutual fund 45 . 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.3 Reliance Growth Fund (G) 5369. At the current date as 07/01/07 Tables for fund size Reliance Mutual Fund Equity schemes Scheme name Reliance Equity Fund (G) 2777.89 Reliance Vision Fund (G) 2473.Reliance money There is lot of variety schemes offered by AMCs. is more than 500Crs. which has the corpus value.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.

Reliance money 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.Reliance Schemes most preferred by investors Frequency Percent Valid Equity Debt 60 40 60% 40% 46 . 2. which contributed around 34% followed by the financial agents at 28%.

Reliance money Total 100 100% 3. Which Equity Scheme you prefer the most in Reliance Mutual Fund? Frequency Percent 47 .

What factors do you consider while investing in mutual fund? Frequency percentage 25 25 21 21 48 Safety Rate of return .Reliance money 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.

How would you rate Reliance mutual fund when compared to the other mutual Fund? Frequency Percentage 23 23 33 33 49 Reliance MF Franklin Templeton MF .Reliance money Liquidity Tax benefit Flexibility Brand Name 18 12 9 15 100 18 12 9 15 100 5.

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 50 .

e. 33% SUGGESTIONS • Agents are the main person who influences the investment decision. • Reliance Mutual Fund is Ranked 2nd by the Investors i.e.Reliance money • 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. 23% of them have ranked Reliance as 2nd and Franklin Templeton is Ranked 1st by the investors i. Company can hire fresh graduates train them and sponsor for the AMFI exam just like insurance companies 51 .

• 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.Reliance money who conduct IRDA training. • Company has to provide timely services to its customers so that it can compete with its competitors like Franklin Templeton and ICICI. This will increase the feet on street for the mutual fund companies. 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 52 .

Reliance money 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 53 .

Other_________________________ 54 .Reliance money Mutual Fund ”. Personal Details: • • • • Name Address Occupation Contact No : _____________________________________________ : _____________________________________________ : _____________________________________________ : _____________________________________________ 1. The information provided by you will be strictly kept confidential and used for academic purpose only. How did you come to know about Reliance mutual Fund? Friends /Relatives News papers / magazines Brokers/Agents Financial consultants.

Reliance money 2. 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. Which Schemes of Reliance Mutual fund would you prefer the most? Equity Schemes Debt Scheme 3. What factors do you consider while investing in mutual fund? Safety Rate of return Liquidity Tax benefit Flexibility Brand Name 55 .

Reliance money 5. How would you rate Reliance mutual fund when compared to the other mutual Fund? (Rank them from 1 to 5. Reliance [ ] Pru ICICI [ ] UTI [ ] Franklin Templeto [ ] HDFC [ ] THANK YOU 56 . 1 being the Highest & 5 being the lowest).