Submitted-Monika Walia

MUTUAL FUND
A mutual fund is the trust that pools the savings of a

number of investors who share a common financial goal. Investment in Mutual Fund is the most cost efficient as it offers the lowest charge to the investor Anybody with an investable surplus of as little as a few hundred rupees can invest in Mutual Funds. The ownership of the fund is thus joint or mutual; the fund belongs to all investors. A single investors ownership of the fund is in the same proportion as the amount of the contribution made by him or her at the time of purchase. A Mutual Fund is a corporation and the fund managers interest is to professionally manage the funds provided by the investors and provide a return on them after deducting reasonable management fees.

MUTUAL FUND OPERATION FLOW CHART

TYPES OF MUTUAL FUND

Types of Mutual Funds

By By Investment

Constitution
Objective

Close Ended

Open Ended

Interval

Equity Funds

Debt Funds

Cash Fund

RELIANCE MUTUAL FUND

Reliance Mutual Fund (RMF) was established as trust under Indian

Trusts Act, 1882. The sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the Trustee.
It was registered on June 30, 1995 as Reliance Capital Mutual Fund

which was changed on March 11, 2004

RMF is one of Indias leading Mutual Funds, with Average Assets

Under Management (AAUM) of Rs. 90635* crs and an investor base of over 64 Lacs.
Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani

Group, is one of the fastest growing mutual funds in the country.

OBJECTIVES
To give a brief idea about the benefits available from

Mutual Fund investment. To give an idea of the types of schemes available. To study some of the mutual fund schemes. Observe the fund management process of mutual funds. Explore the recent developments in the mutual funds in India. To give an idea about the regulations of mutual funds. To study the Business Associate Plan. To study the Business Associate schemes.

BUSINESS ASSOCIATE MODEL

Business Associate Plan is launched in B-15 cities to increase awareness level of the mutual fund and tell benefits of investing in mutual and increase the sells of the mutual fund.

In this the targeted people where. Post office Agents Insurance Agents FD Agents Brokers / sub - brokers NSE / BSE Retried Government Officers Retried Teachers Retried Bank Officers Other individuals can also opt this opportunity.

LEVELS AND BENEFITS OF BA MODEL

Designation Level 1 Business AssociateProbation 2 3 Business Associate 4 AUM prerequisite 3 lacs(Monthly Net Sales) Privileges 1. Sales and marketing support 2. Visiting Cards 3. 1 IAPs Per Month 4. 1 Training Per Quarter 5. NISM Training Sponsorship 6. CPFA Sponsorship 7. 2 Trainings per quarter 8. Insurance Cover 5 lcs 9. 2 IAPs per Month 10. Insurance Cover 10 lcs 11. CFP Sponsorship 12. 3 IAPs per Month 13. Insurance Cover 15 Lcs 14. Insurance Cover 20 Lcs 15. Child Scholarship 16. Infrastructure Support 17. Annual Award Nite* 18. Insurance Cover 25 Lcs 19. Family Floater Mediclaim 20. MDP/EDP at Premier Management Institute

30 lacs - < 50 lacs 50 lacs - < 75 lacs 75 lacs - < 1 Cr

Senior Business Associate

5 6 7

1 Cr - < 1.5 Cr

1.5 Cr - < 2 Crs 2 Crs - < 5 Crs

Chief Business Associate

5 Cr - < 10 crs

Elite Business Associate

10 Crs and above

Fixed Commission
Designation Level AUM prerequisite Fixed Fixed Commission Commission Per Month Per Annum Rs. Rs.

Business AssociateProbation
Business Associate Senior Business Associate Chief Business Associate Elite Business Associate

1 2 3 4 5 6 7 8
9

3 lacs(Monthly Net Sales) 30 lacs - < 50 lacs 50 lacs - < 75 lacs 75 lacs - < 1 Cr 1 Cr - < 1.5 Cr 1.5 Cr - < 2 Crs 2 Crs - < 5 Crs 5 Cr - < 10 crs
10 Crs and above

3,000 5,000 6,000 7,500 10,000 15,000 20,000 50,000

100,000

36,000 60,000 72,000 90,000 120,000 180,000 240,000 600,000

1,200,000

Above 2 Crs, the Business Associate would be eligible for Rs 2000 on every additional Rs 20 lacs of AUM generated.

Referral Incentive

The Business Associate referring another Business

Associate will get an additional incentive of 5% of the total revenue (fixed + variable) earned by the referred Business Associate-RD.
Business Associate Annual Revenue Referrals Designation Of Referred Candidate Revenue Of Referred Candidate Annual Revenue Through 10 Referrals @ 5% Total Annual Revenue Rs.72,000 10 Business Associate Rs.72,000 Rs.36,000 Rs.108,000 A

B A+B

RESEARCH
DESCRIPTIVE RESEARCH Descriptive research is the most widely used research design as indicated by the theses and reports from research institutions. The common means of obtaining information through questionnaire, interviews personnel with the help of the study guide. Descriptive research is something more and more than the collection of data. Data can be exact expressions of central tendency, deviation or correlation. But the report is not research unless the discussion of those data is not carried up to the level of proper interpretation

ANALYIS AND FINDINGS

Now a days people are getting awareness about mutual fund, but some

where some portion of people are not aware about mutual fund.

Insurance agents think that mutual fund is more riskier than insurance. They do not know the benefits of investing in mutual fund. They say that LIC is life secure but mutual fund is not life secure than how

will they convince the investors.

Beside LIC some of them are doing their own business and some of them

are doing job, they does not have time to move towards other business.

ANALYIS AND FINDINGS

Some of them are new to LIC so they first want to concentrate in that

business .
Some of them are from many years in LIC and they are the member of

various club and their income is good as compare to mutual fund , so they dont want to move towards other business. Beside the agents find the salary structure of BA model to be less lucrative.
Some agents are also of the opinion that working in an open market

will be more easy and beneficial for them as compare to the model proposed by Reliance Mutual fund.

SUGGESTIONS
To increase the awareness we should organize programmes in public places to educate the people about mutual fund and in this way we can know the reaction of the public about mutual fund.
Insurance agents are working in insurance sector from many years so they know the benefits of insurance and think that BA model is riskier but we should

compare both insurance and BA model and explain that both are almost same thing.
For Business Associate Plan , Reliance Mutual Fund have to add some extra features in it with aggressive marketing promotional strategy. LIC is life secure but its maturity period is very long, minimum maturity period in insurance sector is 5 years , but in BA model beside tax saver schemes other schemes can be redeem after one year.

SUGGESTIONS
Insurance agents do not have to move from their place they can convince their insured customers to invest in mutual fund. And the people who visit to the office ,the agent can tell them about BA model and know their reaction about BA model.
We can explain them that consecutively giving 3 years LIC they become the

club member but in BA model the candidate has to fullfil the first 6 months target i.e. 3 lacs-30 lacs if the candidate complete the target than the candidate is promoted to the next level.
BA model along with that they can carry on his/her own work , we can explain them this

In BA plan the candidate has to move towards the market to bring investments for

.
There should be provision of suggestion boxes at the branch about the BA model. Reliance Mutual fund should explain that investing in mutual fund will give higher

rate of return as compare to Banks and Post Office.