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PROJECT REPORT

ON

RELIANCE MUTUAL FUND

SUBMITTED FOR THE PARTIAL FULFILLMENT OF


MASTER OF BUSINESS ADMINISTRATION
(INDUSTRY INTEGRATED)
TO
MADURAI KAMARAJ UNIVERSITY

UNDER GUIDANCE OF : SUBMITTED BY

Ms. SRISHTI SHARMA PRAVEEN KUMAR


M.B.A (2nd Semester)
A8750123

rbs
RAI BUSINESS SCHOOL
MADURAI KAMARAJ UNIVERSITY,BHOPAL
YEAR : 2008-2010
PREFACE

The successful completion of this project was a unique


experience for me because by visiting many place and
interacting various person ,I achieved a better
knowledge about sales . The experience which I gained
by doing this project was essential at this turning point
of my carrer this project is being submitted which
content detailed analysis of the research under taken by
me.

The research provides an opportunity to the student to


devote his/her skills knowledge and competencies
required during the technical session.

The research is on the topic “Reliance mutual Fund ”

2
ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to


various people who have shared their valuable time and
made possible this project ,through their direct indirect
cooperation .

My honourable Mam Mrs. Swati Tiwari (HOD) and


Mrs. Srishti Sharma (Faculty)Rai business School
BHOPAL ,for allowing me to work on this project and
provide necessary help.

I thank my respected faculties ,dear friend &


colleagues ,who help me in every possible ways , support
me and encouraged me to explore new dimensions.

PRAVEEN KUMAR
MBA 2nd Semester
Rai Business School
Bhopal

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CERTIFICATE
This to certify that Ms. PRAVEEN KUMAR,M.B.A II
Semester ,Rai Business School BHOPAL,Madurai
Kamaraj University has done project on “Reliance
Money “and has successfully completed his project on
“Reliance Mutual Fund “
This report is completed under my supervision .It is
only for academic purpose and is a bonafide work done
by researcher .

Project Guide
Mrs. Srishti Sharma
FACULTY
Rai Business School,BHOPAL

DECLARATION

4
I Priyanka Asati do here by declare that the project
work entitle on the “reliance mutual Fund in India”at
Bhopal is the original work done by me .

This project report presented as a partial fulfillment


requirement for the degree of Master of Business
administration.

PRAVEEN KUMAR
MBA 2nd semester
Rai business School
Bhopal

CONTENTS

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1. INTRODUCTION 8
2. COMPANY PROFILE 15
3. COMPETITORS OF RELIANCE MONEY 37
4. NEED FOR THE STUDY 39
5. OBJECTIVES OF THE STUDY 42
6. RESEARCH METHDOLOGY 43
7. DATA ANALYSIS AND INTERPRETATION 45
8. OBSERVATION 51
9. FINDINGS AND SUGGESTION 52
10.CONCLUSION 54
11.LIMITATION 55
12.BIBLIOGRAPHY 56

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INTRODUCTION

INTRODUCTION

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There are a lot of investment avenues available today in the
financial market for an investor with an invest able surplus.
He can invest in Bank Deposits, Corporate Debentures, and
Bonds where there is low risk but low return. He may
invest in Stock of companies where the risk is high and the
returns are also proportionately high. The recent trends in
the Stock Market have shown that an average retail investor
always lost with periodic bearish tends. People began
opting for portfolio managers with expertise in stock
markets who would invest on their behalf. Thus we had
wealth management services provided by many institutions.
However they proved too costly for a small investor. These
investors have found a good shelter with the mutual funds.

Like most developed


and developing countries the mutual fund cult has been
catching on in India. The reasons for this interesting
occurrence are:
1. Mutual funds make it easy and less costly for
investors to satisfy their need for capital growth, income
and/or income preservation.
2. Mutual fund brings the benefits of diversification and
money management to the individual investor, providing a
Opportunity for financial success that was once available
only to a select few.

HISTORY

8
Unit Trust of India is the first Mutual Fund set up
under a separate act, UTI Act in 1963, and started its
operations in 1964 with the issue of units under the scheme
US-641. In 1978 UTI was delinked from the RBI and
Industrial Development Bank of India (IDBI) took over the
Regulatory and administrative control in place of RBI.

In the year 1987 Public Sector banks like State Bank


of India, Punjab National Bank, Indian Bank, Bank of
India, and Bank of Baroda have set up mutual funds.

Apart from these above mentioned banks Life


Insurance Corporation [LIC] and General Insurance
Corporation [GIC] too have set up mutual fund. LIC
established its mutual fund in June 1989.while GIC had set
up its mutual fund in December 1990.The mutual fund
industry had assest under management of Rs. 47,004
crores.

With the entry of Private Sector Funds a new era has


started in Mutual Fund Industry [e.g:- Principal Mutual
Fund.]

Mutual Fund Regulations

9
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.

Types of MutualFunds Scheme in India

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Wide variety of Mutual Fund Schemes exist to cater to the
needs such as financial position, risk tolerance and return
expectations etc. The table below gives an overview into
the existing types of schemes in the Industry.
• By Structure
o Open - Ended Schemes

o Close - Ended Schemes

o Interval Schemes

• By Investment Objective
o Growth Schemes

o Income Schemes

o Balanced Schemes

o Money Market Schemes

• Other Schemes
o Tax Saving Schemes

o Special Schemes

 Index Schemes

 Sector Specfic

ADVANTAGES OF MUTUAL FUNDS

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There are numerous benefits of investing in mutual funds
and one of the key reasons for its phenomenal success in
the developed markets like US and UK is the range of
benefits they offer, which are unmatched by most other
investment avenues.

Diversification
The nuclear weapon in your arsenal for your fight
against Risk. It simply means that you must spread your
investment across different securities (stocks, bonds,
money market instruments, real estate, fixed deposits etc.)
and different sectors (auto, textile, information technology
etc.).
Tax Benefits
Any income distributed after March 31, 2002 will be
subject to tax in the assessment of all Unit holders.
However, as a measure of concession to Unit holders of
open-ended equity-oriented funds, income distributions for
the year ending March 31, 2003, will be taxed at a
concessional rate of 10.5%.

Regulations

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Securities Exchange Board of India (“SEBI”), the
mutual funds regulator has clearly defined rules, which
govern mutual funds. These rules relate to the formation,
administration and management of mutual funds and also
prescribe disclosure and accounting requirements. Such a
high level of regulation seeks to protect the interest of
investors

Affordability

A mutual fund invests in a portfolio of assets, i.e. bonds,


shares, etc. depending upon the investment objective of the
scheme. Azn investor can buy in to a portfolio of equities,
which would otherwise be extremely expensive.

Features related mutual funds

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• Reliance was the first fund house to launch sector
funds with flexibility to invest in a range of 0% to
100% in either equity or debt instruments.

• Mutual fund investments linked to an ATM/debit


card a Reliance innovation India’s first long-
short fund comes from Reliance Mutual Fund .

• As at 31st May 2008, more than 6.6 million people


had invested in Reliance Mutual Fund;the
investments comprised 16% of the country’s entire
mutual fund.

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COMPANY PROFILE OF
RELIANCE

15
RELIANCE INDUSTRIES LIMITED

Reliance Group Holdings has grown from


a small office data-processing equipment firm in 1961 into
a major insurance and financial-services group in one
generation under one chief.
Reliance's insurance operations constitute the
nation's 27th-largest property and casualty operation. The
parent company also includes a development subsidiary in

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commercial real estate. Reliance's international consulting
group contains several subsidiaries in energy, environment,
and natural resources consulting. A financial arm invests in
other businesses, primarily television stations.

Reliance Insurance started as the Fire Association


of Philadelphia in 1817, organized by 5 hose and 11 engine
fire companies. It became the nation's first association of
volunteer fire departments.

Business got a boost as a result of the Great


Chicago Fire of 1871.The association soon developed a
field of agents to write policies across the country. For the
first two years, shareholders received dividends twice a
year of $5 a share, which increased gradually to $10 in
1876.

In 1972, the Reliance insurance group divided its


pool so that Reliance Insurance Company and its
subsidiaries handled most standard lines, while United
Pacific Insurance Company handled the nonstandard and
other operations.

In 1977, the company moved into real estate,


forming Continental Cities Corporation, which became
Reliance Development Group, Inc. This division handled
all real estate operations of the parent company and other
subsidiaries.

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Reliance Capital Group, L.P. constituted the
investment branch of the Reliance conglomerate.
In December 1989, Reliance Capital sold its investment,
Days Corporation, parent company of Days Inn of America,
the world's third-largest hotel chain; it had been purchased
in 1984.

Reliance Industries Limited. The Group's


principal activity is to produce and distribute plastic and
intermediates, polyester filament yarn, fibre intermediates,
polymer intermediates, crackers, chemicals, textiles, oil and
gas. The refining segment includes production and
marketing operations of the Petroleum refinery. The
petrochemicals segment includes production and marketing
operations of petrochemical products namely, High and
Low density Polyethylene.

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"Growth has no limit at Reliance. I keep revising
my vision.
Only when you can dream it, you can do it."

Dhirubhai Ambani founded Reliance as a textile company


and led its evolution as a global leader in the materials and
energy value chain businesses.
He is credited to have brought about the equity cult in India
in the late seventies and is regarded as an icon for
enterprise in India. He epitomized the spirit 'dare to dream
and learn to excel'.
The Reliance Group is a living testimony to his indomitable
will, single-minded dedication and an unrelenting
commitment to his goals.

RELIANCE MUTUAL FUND

This groupdominates this key areain the financial


sector..This megabusiness houses show that it has
assetsunder management ofRs. 90,938 crore(US$ 22.73
billion) andan investor base of over6.6 million
(Source:www.amfiindia.com).Reliance’s mutual

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fundschemes are managed byReliance Capital
AssetManagement LimitedRCAM), a subsidiary of
Reliance Capital Limited,which holds 93.37% ofthe paid-
up capitalof RCAM.
The company notchedup a healthy
growth ofRs. 16,354 crore(US$ 4.09 billion)in assets under
management in February2008 and helped propelthe total
industry-wideAUM to Rs. 565,459 crore (US$ 141.36
billion)(Source: indiainvestments.com). A sharp rise infixed
maturity plans (FMPs) and collection ofRs. 7000 crore
(US$ 1.75 billion) through newfund offers (NFOs) created
this surge. In AUrankings, Reliance continues to be in
thenumber one spot.

India's Best Offering: Reliance Mutual Fund


Investing has become global. Today, a lot of countries
are waking up to the reality that in order to gain financial
growth, they must encourage their citizens to not only save
but also invest. Mutual funds are fast becoming the mode
of investment in the world.

In India, a mutual fund company called the Reliance


Mutual Fund is making waves. Reliance is considered
India's best when it comes to mutual funds. Its investors
number to 4.6 billion people. Reliance Capital Asset
Management Limited ranks in the top 3 of India's banking
companies and financial sector in terms of net value.

The Anil Dhirubhai Ambani Group owns Reliance; they are

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the fastest growing investment company in India so far. To
meet the erratic demand of the financial market, Reliance
Mutual Fund designed a distinct portfolio that is sure to
please potential investors. Reliance Capital Asset
Management Limited manages RMF.

Vision And Mission

Reliance Mutual Fund is so popular because it is investor


focused. They show their dedication by continually dishing
out innovative offerings and unparalleled service
initiatives. It is their goal to become respected globally for
helping people achieve their financial dreams through
excellent organization governance and customer care.
Reliance Mutual fund wants a high performance
environment that is geared at making investors happy.

RMF aims to do business lawfully and without stepping on


other people. They want to be able to create portfolios that
will ensure the liquidity of the investment of people in
India as well as abroad. Reliance Mutual Fund also wants
to make sure that their shareholders realize reasonable
profit, by deploying funds wisely. Taking appropriate risks
to reach the company's potential is also one of Reliance
Mutual Fund's objectives.

Schemes

To make their packages more attractive, Reliance Mutual


Fund created proposals called The Equity/ Growth scheme,
Debt/Income Scheme, and Sector Specific Scheme.

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i. Debt/Income Scheme, and Sector Specific
Scheme.

The Equity/ Growth scheme give medium to long


term capital increase. The major part of the investment
is on equities and they have fairly high risks. The
scheme gives the investors varying options like,
capital augmentation or dividend preference. The
choices are not deadlocked because if you want you
may change the options later on.

Providing steady and regular income is one of


the Debt/Income Scheme's primary goals. The
Debt/Income scheme has in its portfolio government
securities, corporate debentures fixed income
securities, and bonds. returns on Sector Specific
Scheme are dependent on the performance of the
industry at which your money is invested upon.
Compared to diversified funds this is a lot more risky
and you will need to really give your time on
observing the market.

Although RMF is gaining good ground in the


financial market, remember that they are a risk taking
bunch. They give higher profit because they take a lot
of risks. So, if you are faint hearted, then Reliance
Mutual Fund is not for you.

GROWTH OF RELIANCE MONEY THROUGH


RECOGNITION
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Growth through Recognition
Reliance has merited a series of awards and recognitions
for excellence for businesses and operations.

Corporate Ranking and Ratings:

Reliance featured in the Fortune Global 500 list of ‘World’s


Largest Corporations’ for the fourth consecutive year.
• Ranked 269th in 2007 having moved up 73 places
from the previous year.
• Featured as one of the world’s Top 200 companies in
terms of Profits.
• Among the top 25 climbers for two years in a row.
• Featured among top 50 companies with the biggest
increase in Revenues.
• Ranked 26th within the refining industry.

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Reliance is ranked 182nd in the FT Global 500 (up from
previous year’s 284th rank).
• PetroFed, an apex hydrocarbon industry association,
conferred the PetroFed 2007 awards in the categories
of “Refinery of the Year” and “Exploration &
Production - Company of the Year”.
• Brand Reliance was conferred the “Bronze Award” at
The Buzziest Brands Awards 2008, organized by
agencyfaqs!
• Institute of Economic Studies conferred the “Udyog
Ratna” award in October 2007 for contributions to the
industry.
• Chemtech Foundation conferred the “Hall of Fame” in
February 2008 for sterling contributions to the
industry.
• Chemtech Foundation conferred the “Outstanding
Achievement - Oil Refining” for work at the Jamnagar
Manufacturing Division.
Petroleum Federation of India conferred the “Refinery of
the Year Award - 2007” to Jamnagar Manufacturing
Division

• “The Plastics Export Promotion Council -


PLEXCOUNCIL Export Award” in the category of
Plastic Polymers for the year 2006-2007 was awarded
to Reliance being the largest exporter in this category.

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HEALTH:-

• Jamnagar Manufacturing Division was conferred the


“Golden Peacock Award for Occupational Health &
Safety - 2007” by Institute of Directors.
• Jamnagar Manufacturing Division was conferred the
“ICC Award for Water Resource Management in
Chemical Industry”.
• Jamnagar Manufacturing Division was conferred the
“Good House Keeping Award” from Baroda
Productivity Council.
• Jamnagar Manufacturing Division was conferred the
“BEL-IND” Award for the best scientific paper at the
58th National Conference of Occupational Health.
• Naroda Manufacturing Division was conferred the
“Safety Award and Certificate of Appreciation”
presented by Gujarat Safety Council & Directorate of
Industrial Safety & Health, Gujarat State for the
recognition of safety performance at the 29th State
Level Annual Safety Conference.
• Dahej Manufacturing Division received “BSC 5-Star”
rating from British Safety Council, UK.
• Dhenkanal Manufacturing Division received the “2nd
Prize for Longest Accident Free Period” from the
Hon’ble Minister of Labour, State of Orissa.

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• Hoshiarpur Manufacturing Division bagged the First
Prize in “Safety in Punjab”, organized by Punjab
Safety Council.
• Patalganga Manufacturing Division won the “Gold
Medal at CASHe (Change Agents for Safety, Health
and Environment) Conference”. It also won the III
Prize in Process Management category for
Presentation on Safety through Design in chemical
process industry in Petrosafe 2007 Conference.
• Kurkumbh Manufacturing Division won the
“Greentech Safety Award silver trophy” for
outstanding achievement in safety management in
chemical sector.
• Hazira Manufacturing Division received the “TERI
Corporate Environmental Award (Certificate of
Appreciation)” for PET recycling project.

Nagothane Manufacturing Division received the


“Shrishti G-Cube Award for Good Green Governance”
from Minister for Commerce and Industry, on World
Earth Day.

Training and Development:-

• Jamnagar Refinery was adjudged the winner of the


“Golden Peacock National Training Award -2007”.

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• Patalganga Manufacturing Division won the “ASTD
(American Society for Training & Development)
Excellence in Practice Award” for innovative practice
titled Learning Function’s role as Business partner:
Empowering people with Knowledge to achieve
Business Goals.
Reliance won the CNBC TV-18 instituted Jobstreet.com
Jobseekers’ Employer of Choice Award.

Energy Excellence:-

• Exploration & Production (E&P) Division won “The


Infraline Energy Excellence Awards 2007:
Hydrocarbon Columbus Award for Excellence in
Petroleum Exploration”.
• Patalganga Manufacturing Division won the First
Prize in “Energy Conservation in State of
Maharashtra” organized by Maharashtra Energy
Development Agency (MEDA).
• Jamnagar Manufacturing Division won the “Oil & Gas
Conservation Award -2007” from the Centre for High
Technology, Ministry of Power & Natural Gas for the
excellent performance in reduction/elimination of
steam leaks in the plant.
• Jamnagar Manufacturing Division was the recipient of
the “Infraline Energy Award-2007” by Ministry of
Power.

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• Hazira Manufacturing Division won the Government
of India Energy Conservation Award (2007) conferred
by the Bureau of energy efficiency and Ministry of
Power.
• Hazira Manufacturing Division was adjudged
“Excellent Energy Efficient Unit” at Energy Summit -
2007 by CII.
Vadodara Manufacturing Division received the CII
award for “Excellence in Energy Management - 2007” as
energy efficient unit. This division also received the 2nd
prize in “National Energy Conservation Award –2007”
from Bureau of Energy efficiency, Ministry of Power,
Government of India.
The Company’s manufacturing divisions at Vadodara and
Hazira were honoured with CII-National award for
excellence in water management - 2007 as water
efficient unit in “Within the fence” category.
Additionally, Hazira Manufacturing Division was
honoured as water efficient unit “Beyond the Fence”
category.

Quality:-

• For the first time ever, globally, a petrochemical


company bagged the “Deming Prize for Management
Quality”. “The Quality Control Award for Operations
Business Unit 2007” was awarded to the Hazira

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Manufacturing Division for Outstanding Performance
by Practicing Total Quality Management.
• “QUALTECH PRIZE 2007”, which recognizes
extraordinary results in improvement and innovation,
was won by Hazira Manufacturing Division for its
Small Group Activity Project.
• Vadodara Manufacturing Division’s Polypropylene-IV
(PP-IV) plant was conferred the “Spheripol Process
Operability Award-2006” for the highest operability
rate with an on stream factor 98.97% by M/s.
BASELL, Italy.
Allahabad Manufacturing Division won the “Excellent
Category Award” at National Convention of Quality
Circle (NCQC) - 07.

Six-Sigma:-

• Lean Six sigma project on “Reducing retention time of


caustic soda lye tankers at Jamnagar” won the 1st
prize in the national level competition held by Indian
Statistical Institute (ISI).
• Patalganga Manufacturing Division’s Six Sigma
Project on Improve Transfer Efficiency for Automatic
winders in PFY won the 2nd Prize for “Best design for
Six Sigma Project in International Six Sigma
Competition” organized by IQPC (International
Quality and Productivity center).

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• Barabanki Manufacturing Division won the 3rd prize
in “All India Six Sigma case study contest 2008” for
the Case study on “Reduction of waste of Plant 2 from
16% to 8%”.
• Hoshiarpur Manufacturing Division won the 2nd prize
in “Six Sigma competition at National Level”
organized by ISI and Quality Council of India (in
manufacturing category), while Dhenkanal and
Barabanki Manufacturing Divisions won the 3rd prize.
Vadodara Manufacturing Division’s Six Sigma project
won the 1st prize as the “Best Six Sigma project” at
National level by CII.

Technology, R&D and Innovation:-

• Vadodra Manufacturing Division’s R&D bagged an


award from Indian Institute of Chemical Engineers for
Excellence in Process / Product Development for the
work on “Eco friendly Process for Acetonitrile
Recovery”.
• “DSIR National Award for R&D Efforts in Industry
(2007)” was conferred on Hazira Manufacturing
Division for the Cyclehexane Recovery Project.
• Patalganga Manufacturing Division’s Project titled
Augmentation of ETP and use of biogas in Fired
heaters won the “Best Innovative Project” from CII.

30
• Reliance bagged the “Innovation Award at Tech
Converge 2007” for innovative developments in short-
cut fibres.
Hazira Manufacturing Division won the “Golden
Peacock Innovation Award - 2007” for its Cyclohexane
Recovery Process.

Information Technology:-

• “CIO of the Year Award” for the best IT-enabled


organization in India for the Year 2007.
• “Ones to Watch - CIO - USA Award”, for figuring
among the top 20 organizations fostering excellence in
IT team.
• “The Skoch Challenger Award” conferred for the best
IT Head (managing the most IT enabled organization)
of the Year 2007.
• “Best IT Implementation Award”, by PC Quest for
Knowledge Management Systems portal (KMS).
• “CIO Excellence Award” for Chemical Industry
Information Technology Forum for exemplary
Information Technology implementation amongst
global chemical companies.
“CTO Forum Hall of Fame Award” for the best CIOs in
India for not only providing service to their

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PRODUCT S : RELIANCE MONEY

The products on offer from Reliance MutualFund fall into


four main categories: equity, debt,sector specific and ETF
(Exchange Traded Fund).Each taps into a specific audience
profile fulfilling their varying needs.Under the equity
category, Reliance has118 SUPERBRANDS sixteen
schemes with Reliance Growth Fundand Reliance Vision

32
Fund as its flagship schemes.Reliance Equity Opportunities
Fund is a schemewhich operates in the multi-cap/multi-
sectorsegment; Reliance Equity Fund is a long-shortfund,
Reliance Quant Plus Fund is a quant fund.Reliance offers
investments in banking, power,media, entertainment and
pharmaceuticals;Reliance Tax Saver Fund and Reliance
Equity-Linked Savings Fund – Series 1 are tax saving
schemes; an NRI-dedicated equity scheme is
tailored for non-resident Indians. RelianceRegular Savings
Fund is an asset-allocation fund with three options.Under
the debt and liquid categories, Reliancehas liquid funds,
liquid plus funds, income funds,an NRI-dedicated debt
fund, gilt funds, fixedmaturity plans and an interval fund.In
the hybrid category, Reliance Monthlyincome Plan is a
popular option

Reliance understands that investments in mutual


fundshare a function of knowledge dissemination and
awareness of products amongst potential investors. In
building its ownbase of assets under management it will
necessarily have to carry the entire mutual fund
industry.Towards this end Reliance has launched a t wo-
pronged initiative.In the first pincer it has created
aformidable network of 26,000 distributors including some
of thebiggest names in the banking sector.This who’s who
of the financial industry comprises such giants asCitibank,
Standard Chartered, HSBC,ICICI, AXIS, Bank of Baroda,
Central Bank of India, Allahabad Bank andfund houses
such as JM, DSP Merrill Lynch and Karvy in addition to a
massive infrastructure of direct financial investment

33
officers. Thisprodigious effort is supplemented by
thebrands’ captive network of 120 branch offices
and 30 financial centres. In the second prong, Reliance has
created a series of informationpacked presentations which
help dispel misinformationGroup.This mega business house
dominates this key area in the financial sector.Figures for
March 2008 show that it has emerged as the top Indian
mutual fund with average assets under management of Rs.
90,938 crore (US$ 22.73 billion) and an investor base of
over 6.6 million (Source:www.amfiindia.com).
Reliance’s mutual fund schemes are
managed by RelianceCapitalAssetManagementLimited
(RCAM), a subsidiary of Reliance Capital Limited,which
holds 93.37% of the paid-up capitalof RCAM.The
company notchedup a healthy growth ofRs. 16,354 crore
(US$ 4.09billion)inassetsunder management in
February2008 and helped propelthe total industry-
wideAUM to Rs. 565,459 crore(US$ 141.36 billion)
(Source: indiainvestments.com). A sharp rise infixed
maturity plans (FMPs)andcollection of Rs. 7000 crore (US$
1.75 billion) through new fund offers (NFOs) created this
surge. InAUMrankings, Reliance continues to be in
thenumber one spot.

Reliance was the first fund house to launch sector funds


with flexibility to invest in a range of 0% to 100% in either
equity or debt instruments Mutual fund investments linked
to anATM/debit card are a Reliance innovationIndia’s first
long-short fund comes from Reliance Mutual Fund As at
31st May 2008, more than 6.6 million people had invested

34
in Reliance Mutual Fund;the investments comprised 16%
of the country’s entire mutual fund asset base.

Achievements

In two successive joint surveys by The Economic Times’


Brand Equity andACNielsen, Reliance was recognised as
India’s Most Trusted Mutual Fund.Thecompanyalsowalked

35
away with seven other scheme prizes – five of them being
outright winners – in the Gulf 2007 Lipper Awards.These
included the Fund House of the Year by Lipper GCC as
well asICRA Online and the Most Improved FundHouse
by Asia Asset Management.It also received the NDTV
Business Leadership Award 2007 in the mutual fund
category and runners’ up recognition as the Best Fund
House in theOutlook Money-NDTV Profit Awards. In
addition,the company received thecoveted CNBC Web18
Genius of the Web distinction for the Best Mutual Fund
Website inthe country. RCAM was awarded the India
Onshore Fund House 2008 instituted by theAsian Investor
magazine.The company also won the India Equities award
in the 5-yearPerformance category.

COMPARATIVE STUDY OF MUTUAL FUND

Major competitior of Reliance Money

Company Profile of HDFC


HDFC BANK is one of the leading Depository Participant

36
(DP) in the country with over 8 Lac demat accounts.

HDFC Bank Demat services offers you a secure and


convenient way to keep track of your securities and
investments, over a period of time, without the hassle of
handling physical documents that get mutilated or lost in
transit.

HDFC BANK is Depository particpant both with -National


Securities Depositories Limited (NSDL) and Central
Depository Services Limited (CDSL).

Features & Benefits

As opposed to the earlier form of dealing in physical


certificates with delays in transaction, holding and trading
in Demat form has the following benefits :

• Settlement of Securities traded on the exchanges as


well as off market transactions.
• Shorter settlements thereby enhancing liquidity.
• Pledging of Securities.
• Electronic credit in public issue.
• Auto Credit of Rights / Bonus / Public Issues /
Dividend credit through ECS.
• Auto Credit of Public Issue refunds to the bank
account.
• No stamp duty on transfer of securities held in demat
form.
No concept of Market Lots.

37
Change of address, Signature, Dividend Mandate,
registration of power of attorney, transmission etc. can be
effected across companies held in demat form by a single
instruction to the Depository Participant (DP).

Secured & easy transaction processing

HDFC Bank Ltd provides convenient facility called


'SPEED-e' (Internet based transaction) whereby account
holder can submit delivery instructions electronically
through SPEED-e website (https://speed-e.nsdl.com).
SPEED-e offers secured means of transaction processing
eliminating preparation of instruction slips and submission
of the same across the counter to the depository participant.
The 'IDEAS' facility helps in viewing the current
transactions and balances (holdings) of Demat account on
Internet on real time basis.

Company Profile of ICICI


ICICIDirect (or ICICIDirect.com) is stock trading company of
ICICI Bank. Along with stock trading and trading in derivatives in
BSE and NSE, it also provides facility to invest in IPOs, Mutual
Funds and Bonds. Trading is available in BSE and NSE

ICICIDirect offers 3 different online trading platforms to its


customers

1. Investment Account

Along with stock trading and IPO investing in BSE and NSE,
Wise Investment account also provide options to invest in
Mutual Funds and Bonds online.

38
Online Mutual funds investment allows investor to invest on-
line in around 19 Mutual Fund companies. ICICI Direct
offers various options while investing in Mutual Funds like
Purchase Mutual Fund, Redemption and switch between
different schemes, Systematic Investment plans, Systematic
withdrawal plan and transferring existing Mutual Funds in to
electronic mode. This account also provides facility to invest
in Government of India Bonds and ICICI Bank Tax
Saving Bonds.
ICICIDirect.com website is the primary tool to invest in
Mutual Funds, IPOs, Bonds and stock trading.

Reliance Money
Tax Saving funds Reliance Money:
Tax-saving funds (due to their equity-oriented
nature) are capable of clocking far superior returns their
assured return counterparts like National Savings
Certificate (NSC) and Public Provident Fund (PPF).
However investors must appreciate that the risk profile of
tax-saving funds tends to be proportionately higher.
Reliance Tax Saver (ELSS) Fund (RTSF) is the latest
entrant in the tax-saving funds segment. Flagship
diversified equity funds (Reliance Growth Fund and
Reliance Equity Fund) from Reliance Mutual Fund have
emerged as top performers in their segment across time
horizons. However investors should note that these funds
are managed aggressively; also they have displayed an
opportunistic streak by moving fluidly across market
segments (large caps, mid caps) to clock superior growth.
RTSF is likely to be a similar (high risk - high return)

39
investment proposition within the tax-saving funds
segment.

SYSTEM INVESTMENT PLAN

SIP is a way of investing in Mutual Funds. It is


designed for those investors who are willing to invest
regularly rather than making a lump sum investment. It is
just like a recurring deposit with the post office or bank
where we deposit some amount every month. The
difference here is that the amount is invested in a mutual
fund. Mutual Fund makes investment according to their
objective .They collect fund from investor and invests it.
Every fund has an objective and pattern of investing. There
are various kinds of mutual funds. There are equity funds
and debt funds. Further equity funds can be divided into
equity diversified mutual fund where funds are invested in
shares of different companies , sectoral funds where
investment is made in shares of some particular sector like
FMCG, IT, Auto, Oil & Gas, Banking etc. Every fund has a
NAV (net asset value) which is the value per unit. It is
calculated as the total asset is divided by the number of
outstanding units. As the value of asset changes, nav also
changes.

The best way to invest in stock market is mutual fund


through Systematic Investment Plan. But to get the benefit
of an SIP, a long term horizon is must.

40
OBJECTIVE

To give a brief idea about the benefits available from


mutual Fund investment.

To give an idea of the types of schemes available.

41
Explore the recent developments in the mutual funds in
India

To give an idea about the regulations of mutual funds.

To analyze reliance mutual fund strategy against its


competitor.

RESEARCH METHODOLOGY

42
Research as a care full investigation or enquiry specially
through search for a new facts in any branch of knowledge”
Research is an academic activity and such as the term
should be used in technical sense.The manipulation of
things , concepts or symbols for the purpose of
generalizing to extend ,correct or verify knowledge
,whether that knowledge through objective.

TYPES OF RESEARCH

ANALYTICAL RESERCH

In this project work, analytical research is used. In this


project has to use facts or information .Already used
available ,and analyze these to make a critical evolution of
the material.

METHODS OF DATA COLLECTION

In this project work primary and secondary data sources of


data has been used.

43
Primary data: Primary data collect through observation ,or
through direct communication or doing experiments .

Secondary data:Secondary data means already available


through books ,journals , magazines ,newspaper.

TOOLS OF ANALYSIS

For the proper analysis of data Quantitative Technique


such as percentage method was used.

DATA ANALYSIS AND INTERPRETATION

Q.1 Which banking mutual fund do you prefer for mutual

44
Fund ?

Co mpany Name Persentages of respondents


Reliance Money 25
HDFC 10
ICICI 15

25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION: 50% of respondent have Reliance


Money , 30% of respondent says that other%.

Q.2 Which banking mutual fund offer you good


investment plan?

Company Name Percentage of respondent


Reliance 22

45
HDFC 21
ICICI 7

25

20

15

10

0
RELIANCE HDFC ICICI

INTERPRETATION:
44% respondent for Reliance,32 %forHdfc,14% for ICICI

Q.3 Which banking mutul fund offer a lot of tax saving?


Company Name Percentage of respondent
Reliance 20
HDFC 15

46
ICICI 15

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:
40% respondent for Reliance,30 %forHdfc,30% for ICICI

Q.4 Which banking mutual fund offer you a large number


of product & services?
Company Name Percentage of respondent

47
Reliance 18
HDFC 16
ICICI 16

18

17.5

17

16.5

16

15.5

15
Reliance HDFC ICICI

INTERPRETATION:
36% respondent for Reliance,32%forHdfc,32% for ICICI

Q.5 Which banking mutual fund offer you a good e-mail


facility ?
Company Name Percentage of respondent
Reliance 22
HDFC 15

48
ICICI 13

25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:
44% respondent for Reliance,30%forHdfc,26% for ICICI

Represent
ICICI
29%
by pie chart
Reliance
41%

HDFC
30%
49
OBSERVATION

 50% of respondent have Reliance Money , 30% of


respondent says that other%.

 44% respondent for Reliance,32 %forHdfc,14% for


ICICI.

50
 40% respondent for Reliance,30 %forHdfc,30% for
ICICI.

 36% respondent for Reliance,32%forHdfc,32% for


ICICI.

 44% respondent for Reliance,30%forHdfc,26% for


ICICI.

FINDINGS AND SUGGESTION

In Equity Schemes we have taken Reliance Vison Fund


and Reliance growth Fund . Both schemes are open ended
but Reliance Growth fund is more valuable for Reliance
Mutual Fund than reliance vision Fund.

In Dedt scheme we have taken Reliance money Manager


Fund and Reliance Liquidty Fund .In it boths schemes are

51
open ended but reliance money manager is more beneficial
for reliance mutual fund .

In sector specific scheme we have taken Reliance media


and entertainment fund and Reliance Pharma fund scheme
both is more efficient for Reliance Mutual Fund.

Above all the schemes of Reliance Mutual Fund Debt


schemes are best schemes for Mutual Fund .

There is a Good investment plan and saving scheme in


reliance Mutual Fund.

SUGGESTION

• Reliance Money have to add some extra features in it


with aggressive marketing promotional strategy.
• Advertisement on television is the main source of
attraction so the company must advertise its products
heavily.
• Product must be improved .

52
• There should be provision of complain suggestion
boxes at each branch.

CONCLUSION

Mutual Fund investment is better than other raising fund .


Reliance Mutual Fund have good returns in investment .

A good brand is always welcomed over here people are


more aware and conscious for the brand so they go for they
are ready to spend some extra bucks for the quality .

53
At last all con be concluded by that Reliance Money is still
growing industry in India and is still exploring its potential
and prospects in here.

Limitations

54
• The time constraint was one of the major problems.
• The study is limited to the different schemes available
under the mutual funds selected.
• The study is limited to selected mutual fund schemes.
• The lack of information sources for the analysis part.

BIBLIOGRAPHY

Websites:
www.reliancemoney.com
www.hdfc.com
www.icicidirect.com

Referencebooks:
•FINANCIAL INSTITUTIONS AND MARKETS -

55
L.M.BHOLE
•INVESTMENT MANAGEMENT - V.K.BHALLA
Research Methodology - Kothari

QUESTIONNAIR
Q.1 Which banking mutual fund do you prefer for mutual
Fund ?
• Reliance Money
• HDFC
• ICICI

Q.2 Which banking mutual fund offer you good


investment plan?

56
• Reliance Money
• HDFC
• ICICI

Q.3 Which banking mutul fund offer a lot of tax saving?


• Reliance Money
• HDFC
• ICICI

Q.4 Which banking mutual fund offer you a large number


of product & services?
• Reliance Money
• HDFC
• ICICI

Q.5 Which banking mutual fund offer you a good e-mail


facility ?
• Reliance Money
• HDFC
• ICICI

57