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A Report On

“Mutual Fund in India – Reliance Money”

Submitted By:
Amit Karnani
(+919001023073)
MBA II Semester,
(Batch 2008-10)
IPS, Jaipur.

Reliance Money

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Table of Contents:

1. Acknowledgement 3
2. Declaration 4

3. List of Tables and Illustration 5

4. Abbreviations 6
5. Summary 7
6. Introduction, History 8-10
7. Objective of Project 11
8. Types of Mutual Fund Schemes in India 12
9. Company Profile
○ Parent Company (Reliance ADAG) 13
○ Reliance Money 14-15
○ Partners of Company 16
○ Products and Services 17
○ Major Competitors 18

○ Reliance Mutual Fund 19-20


○ Types of Reliance MF 19
○ Working of Mutual Fund 21-22
1. Research Methodology 23
2. Review of Literature 24
3. Findings And Suggestion 25
4. SWOT Analysis 26
5. Conclusion 27
6. Bibliography 28
7. Questionnaire. 29

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ACKNOWLEDGEMENT

This report bears the imprint of many people. Right from the experienced staff of
Reliance Money, to the staff of _________________________________, without whose
support and guidance I would have not got the unique opportunity to successfully
complete my internship in this esteemed organization.

I take this opportunity to express my deep gratitude to all the employees of,
Reliance Money, __________. Also I am indebted for the rich guidance, knowledge and
suggestions provided by my guide, _____________ who took sincere efforts and
illustrated the Marketing Concept of Financial Products, with their vast knowledge in the
field, which helped me in carrying out my internship.

I am highly indebted to ______________ (Relationship Manager of Reliance


project guide, who has provided me the necessary information and his good support in
understanding the basics of the Reliance Money easily.

I am gratified to _____________ for their earnest coordination owing to which, I


had the leg-up of undertaking the internship at the prominent organization, Reliance
Money Pvt ltd.

Last but not least, I also thank all those people whom I met in the industry during
my internship and helped me to accomplish my assignments in the most efficient and
effective manner.

Amit Karnani,
IPS, Jaipur.
Batch 2008-10.

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DECLARATION

I hereby declare that this Project Report entitled “Reliance Money – Mutual
Fund”, submitted in the partial fulfillment of the requirement of Master of Business
Administration (MBA) of IPS, The Business School, Jaipur is based on primary &
secondary data found by me in various departments, books, magazines and websites &
Collected by me in under guidance of __________.

Amit Karnani,
IPS, Jaipur.
Batch 2008-10.

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List of Tables and Illustration:

• Types of Mutual Funds 12


• Reliance ADAG Group Profile 13
• Reliance Money 15
• Partners of Reliance Money 16
• Types of Mutual Funds on the basis of Risk Vs Returns 19
• Comparison of Investment Schemes 20
• Working of a Mutual Fund 21

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Abbreviations:

NAV: Net Asset Value


MF: Mutual Fund
SIP: Systematic Investment Plan
UTI: Unit Trust of India
SEBI: Security and Exchange Board of India

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SUMMARY

This project has been a great learning experience for me; at the same time it gave me
enough scope to implement my analytical ability. This project as a whole can be divided
into two parts:

• The first part gives an insight about the mutual funds and its various
aspects. It is purely based on whatever I learned at Reliance Money. One
can have a brief knowledge about Mutual funds and all its basics through
the project. Other than that the real servings come when one moves ahead.
Some of the most interesting questions regarding mutual funds have been
covered. Apart from Mutual Funds a light has also been through on Life
Insurance Policies. All the topics have been covered in a very systematic
way. The language has been kept simple so that even a layman could
understand. All the data’s have been well analyzed with the help of charts
and graphs.

• The second part consists of data and their analysis, collected through a
survey done on 200 people. It covers the topic” Awareness and Impact
level among people about Mutual Funds and Life Insurance Policies”. The
data collected has been well organized and presented. Hope the research
findings and conclusions will be of use. It has also covered why people
don’t want to go in invest? The advisors can take further steps to approach
more and more people and indulge them for taking their advices.

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INTRODUCTION

There are a lot of investment avenues available today in the financial market for an
investor with 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
that 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 an Opportunity for financial success
that was once available only to a select few.

Mutual Funds: An Understanding:

Like most developed and developing countries the mutual fund cult has been
catching on in India. There are various reasons for this. Mutual funds make it easy and
less costly for investors to satisfy their need for capital growth, income and/or income
preservation. And in addition to this a mutual fund brings the benefits of diversification
and money management to the individual investor, providing an opportunity for financial
success that was once available only to a select few.

Understanding Mutual funds is easy as it’s such a simple concept: a mutual fund
is a company that pools the money of many investors—its shareholders—to invest in a
variety of different securities. Investments may be in stocks, bonds, money market
securities or some combination of these. Those securities are professionally managed on
behalf of the shareholders, and each investor holds a pro rata share of the portfolio—
entitled to any profits when the securities are sold, but subject to any losses in value as
well.

For the individual investor, mutual funds provide the benefit of having someone
else manage your investments and diversify your money over many different securities
that may not be available or affordable to you otherwise. Today, minimum investment
requirements on many funds are low enough that even the smallest investor can get
started in mutual funds. A mutual fund, by its very nature, is diversified—its assets are
invested in many different securities. Beyond that, there are many different types of

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mutual funds with different objectives and levels of growth potential, furthering your
chances to diversify.

The Concept of Mutual Fund:

A mutual fund is a common pool of money into which investors place their contributions
that are to be invested in accordance with a stated objective. The ownership of the fund is
thus ‘joint’ and ‘mutual’; the fund belongs to all investors.

Mutual Fund Industry in India:

The origin of mutual fund industry in India is with the introduction of the concept of
mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated
from the year 1987 when non-UTI players entered the industry. In the past decade, Indian
mutual fund industry had seen a dramatic improvement, both qualities wise as well as
quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets
Under Management (AUM) was Rs. 67bn. The private sector entry to the fund family
raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of
1,540 bn. Putting the AUM of the Indian Mutual Funds Industry into comparison, the
total of it is less than the deposits of SBI alone, constitute less than 11% of the total
deposits held by the Indian banking industry. The main reason of its poor growth is that
the mutual fund industry in India is new in the country. Large sections of Indian investors
are yet to be intellectualized with the concept. Hence, it is the prime responsibility of all
mutual fund companies, to market the product correctly abreast of selling. The mutual
fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.

First Phase - 1964-87:

Unit Trust of India (UTI) was established on 1963 through an Act of Parliament, It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the
RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds):

Entry of non-UTI mutual funds, SBI Mutual Fund was the first followed by could bank
Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92).
LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under
management.

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Third Phase - 1993-2003 (Entry of Private Sector Funds):

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the
year in which the first Mutual Fund Regulations came into being, under which all mutual
funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer
(now merged with Franklin Templeton) was the first private sector mutual fund registered
in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and
acquisitions, as at the end of January 2003, there were 33 mutual funds with total assets
of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under
management was way ahead of other mutual funds.

Fourth Phase - since February 2003:

This phase had bitter experience for UTI. It was bifurcated into two separate entities. One
is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores
(as on January 2003). The Specified Undertaking of Unit Trust of India, functioning
under an administrator and under the rules framed by Government of India and does not
come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual
Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and
functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI
which had in March 2000 more than Rs.76, 000 crores of AUM 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.

Mutual Fund Regulations:

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of
assets under management and with the setting up of a UTI Mutual Fund, conforming to
the SEBI Mutual Fund Regulations, and with recent mergers taking place among
different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September 2004, there were 29 funds, which
manage assets of Rs.153108 crores under 421 schemes.

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Advantages Of Mutual Funds:

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 confessional rate of 10.5%.
Regulations:

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.

Objective of the Project:

1. To give a brief idea about the benefits available from mutual Fund investment.
2. To give an idea of the types of schemes available.
3. Explore the recent developments in the mutual funds in India.
4. To give an idea about the regulations of mutual funds.
5. To analyze reliance mutual fund strategy against its competitor.

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Types Of Mutual Funds Scheme In India:

Wide variety of Mutual Fund Schemes exists 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:
1. Open - Ended Schemes,
2. Close - Ended Schemes,
3. Interval Schemes.

By Investment Objective:
1. Growth Schemes,
2. Income Schemes,
3. Balanced Schemes,
4. Money Market Schemes,

Other Schemes:
1. Tax Saving Schemes,
2. Special Schemes,
3. Index Schemes,
4. Sector Specific.

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Company Profile:

Reliance ADAG Group:

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Reliance Money:

Reliance money is a part of the reliance Anil Dhirubhai Ambani Group and is
promoted by Reliance capital, the fastest growing private sector financial services
company in India, ranked amongst the top 3 private sector financial companies in terms
of net worth. Reliance money is a comprehensive financial solution provider that enables
you to carry out trading and investment activities in a secure, cost-effective and
convenient manner. Through reliance money, you can invest in a wide range of asset
classes from Equity, Equity and commodity Derivatives, Mutual Funds, insurance
products, IPO’s to availing services of Money Transfer & Money changing. Reliance
Money offers the convenience of on-line and offline transactions through a variety of
means, including its Portal, Call & Transact, Transaction Kiosks and at it’s network of
affiliates.

“Success is a journey, not a destination.” If we look for examples to prove this


quote then we can find many but there is none like that of Reliance Money, The
company, which is today known as the largest financial service provider of India.

Success sutras of Reliance Money:

The success story of the company is driven by 9 success sutras adopted by it


namely Trust, Integrity, Dedication, Commitment, Enterprise, Hard work, Home work,
Team work play, Learning and Innovation, Empathy and Humility and last but not the
least it’s the Network. These are the values that bind success with Reliance Money.

Vision of Reliance Money:

To achieve & sustain market leadership, Reliance Money shall aim for complete
customer satisfaction, by combining its human and technological resources, to provide
world-class quality services. In the process Reliance Money shall strive to meet and
exceed customer’s satisfaction and set industry standards.

Mission statement:

“Our mission is to be a leading and preferred service provider to our customers, and we
aim to achieve this leadership position by building an innovative, enterprising, and
technology driven organization which will set the highest standards of service and
business ethics.”

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.

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Products and Services:

Equity Reliance Money offers its clients competitively priced Equity broking,
PMS and Portfolio Advisory Services. Trading execution assistance provided to clients.
In addition Reliance Money provides independent and unbiased view on markets along
with trading strategies and entry / exit points for taking an informed decision.

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Mutual Funds:

A mutual fund is a professionally managed fund of collective investments that collects


money from many investors and puts it in stocks, bonds, short-term money market
instruments, and/or other securities. Reliance Money offers dedicated research & expert
advice on Mutual Funds. Mutual funds are considered to have low risk factors owing to
diversification of assets into various sectors and scripts or instruments within.

Insurance:

• Life Insurance: Reliance Money assists its clients in choosing a customized plan,
which will secure the family’s future and their expenses post-retirement. Clients
can choose from different plans of almost all Insurance Companies where they
can invest their money. Clients can choose from products and services that
channel their savings and protect their needs while guaranteeing security and
returns for life. A team of experts will suggest the best Insurance scheme, which
suits the client’s requirement.
• General Insurance: General Insurance is all about protecting against all kind of
insurable risks. Reliance Money assists you in areas of Health insurance, Travel
insurance, Home insurance and Motor insurance.

Commodities:

A single platform to trade on both the major commodity exchanges i.e. NCDEX and
MCX. In addition In-house research desk shall provide research reports on all major
commodities, which shall enable in getting views for trading and diversify client’s
holdings. Trade Execution assistance is also provided to clients.

Structured Products:

Art Investments Structured Products is a new class of financial products for investors
apprehensive of increased volatility in stock markets. Specially designed products could
include Equity, Index-linked in nature, Real Estate Funds, Art Funds, Overseas
Investments and Infrastructure Investments.

Tax Planning: With a view to provide complete wealth management solutions, Reliance
Money’s wealth management offerings include tax related services like: Tax Planning &
advisory Filing Tax returns for individuals.

Real Estate Advisory Services: Broking Model for lease/rent and buy/sell of property
Valuation Real-estate Consulting – Corporate earnings model, Lease rentals, etc.

Offshore Investments:

Reliance Money provides a unique opportunity to invest in international financial


markets through the online platform, which includes different product ranges.

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Major Mutual Fund Companies in India:

• ABN AMRO Mutual Fund,


• Birla Sun Life Mutual Fund,
• Bank of Baroda Mutual Fund (BOB Mutual Fund),
• HDFC Mutual Fund,
• HSBC Mutual Fund,
• ING Vysya Mutual Fund,
• Prudential ICICI Mutual Fund,
• Sahara Mutual Fund,
• State Bank of India Mutual Fund,
• Tata Mutual Fund,
• Kotak Mahindra Mutual Fund,
• Unit Trust of India Mutual Fund,
• Standard Chartered Mutual Fund,
• Franklin Templeton India Mutual Fund,
• Morgan Stanley Mutual Fund India,
• Escorts Mutual Fund,
• Alliance Capital Mutual Fund,
• Benchmark Mutual Fund,
• Canbank Mutual Fund,
• Chola Mutual Fund,
• LIC Mutual Fund,
• GIC Mutual Fund.

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Reliance Mutual Fund:

Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai Ambani Group, is
India's leading Mutual Fund, with average Assets under Management of Rs. 90,813
crores for the month of June 2008, and an investor base of over 6.7 million. Reliance
Mutual Fund offers investors a well-rounded portfolio of products to meet varying
investor requirements. Reliance Mutual Fund has a presence in 300 cities across the
country and constantly endeavors to launch innovative products and customer service
initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by
Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital
Ltd.

Types of Reliance Mutual Funds:

1. Reliance Growth Fund,


2. Reliance Vision Fund,
3. Reliance Banking Fund,
4. Reliance Diversified Power Sector Fund,
5. Reliance Pharma Fund,
6. Reliance Media & Entertainment Fund,
7. Reliance NRI Equity Fund,
8. Reliance Equity opportunities Fund,
9. Reliance Index Fund,
10. Reliance Tax Saver (ELSS) Fund,
11. Reliance Equity Fund,
12. Reliance Long Term Equity Fund,
13. Reliance Regular Saving Fund.
There are two types of investment in Mutual Funds:

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1. Lump Sum,
2. Systematic Investment Plan (SIP).

Lump sum:

In Lump sum the investment is only one times that is of Rs. 5,000, and if the investment
is monthly then the investment will be 6,000/-.

Systematic Investment Plan (SIP):

We have already mentioned about SIPs in brief in the previous pages but now going into
details, we will see how the power of compounding could benefit us. In such case, every
small amounts invested regularly can grow substantially. SIP gives a clear picture of how
an early and regular investment can help the investor in wealth creation. Due to its
unlimited advantages SIP could be redefined as “a methodology of fund investing
regularly to benefit regularly from the stock market volatility. In the later sections we will
see how returns generated from some of the SIPs have outperformed their benchmark.

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Working of a Mutual Fund:

Advantages of Mutual Funds:

1. Diversification: The best mutual funds design their portfolios so individual


investments will react differently to the same economic conditions. For example,
economic conditions like a rise in interest rates may cause certain securities in a
diversified portfolio to decrease in value. Other securities in the portfolio will
respond to the same economic conditions by increasing in value. When a portfolio

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is balanced in this way, the value of the overall portfolio should gradually
increase over time, even if some securities lose value.
2. Professional Management: Most mutual funds pay topflight professionals to
manage their investments. These managers decide what securities the fund will
buy and sell.
3. Regulatory oversight: Mutual funds are subject to many government regulations
that protect investors from fraud.
4. Liquidity: It's easy to get your money out of a mutual fund. Write a check, make
a call, and you've got the cash.
5. Convenience: You can usually buy mutual fund shares by mail, phone, or over
the Internet.
6. Low cost: Mutual fund expenses are often no more than 1.5 percent of your
investment. Expenses for Index Funds are less than that, because index funds are
not actively managed. Instead, they automatically buy stock in companies that are
listed on a specific index.
7. Transparency,
8. Flexibility,
9. Choice of schemes,
10. Tax benefits,
11. Well regulated.

Drawbacks of Mutual Funds:

Mutual funds have their drawbacks and may not be for everyone:

1. No Guarantees: No investment is risk free. If the entire stock market declines in


value, the value of mutual fund shares will go down as well, no matter how
balanced the portfolio. Investors encounter fewer risks when they invest in mutual
funds than when they buy and sell stocks on their own. However, anyone who
invests through a mutual fund runs the risk of losing money.
2. Fees and commissions: All funds charge administrative fees to cover their day-
to-day expenses. Some funds also charge sales commissions or "loads" to
compensate brokers, financial consultants, or financial planners. Even if you don't
use a broker or other financial adviser, you will pay a sales commission if you buy
shares in a Load Fund.
3. Taxes: During a typical year, most actively managed mutual funds sell anywhere
from 20 to 70 percent of the securities in their portfolios. If your fund makes a
profit on its sales, you will pay taxes on the income you receive, even if you
reinvest the money you made.

Achievements:

In two successive joint surveys by The Economic Times’ Brand Equity and AC Nielsen,
Reliance was recognized as India’s Most Trusted Mutual Fund. The company also
walked away with seven other scheme prizes – five of them being outright winners – in

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the Gulf 2007 Lipper Awards. These included the Fund House of the Year by Lipper
GCC as well as ICRA Online and the Most Improved Fund House 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 the Outlook Money-
NDTV Profit Awards. In addition, the company received the coveted CNBC Web18
Genius of the Web distinction for the Best Mutual Fund Website in the country. RCAM
was awarded the India Onshore Fund House 2008 instituted by the Asian Investor
magazine. The company also won the India Equities award in the 5-yearPerformance
categories.

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Research Methodology:

Objective of research:

• The main objective of this project is concerned with getting the opinion of people
regarding Mutual Funds, to target them and create awareness while with the
generation of leads.
• I have tried to explore the general opinion about Mutual Funds. It also covers
why/ why not investors are availing the services of financial advisors.
• Along with it a brief introduction to India’s largest financial intermediary,
RELIANCE MONEY has been given and it is shown that what are mutual funds
and life insurance and how they work

Scope of the study:

The research was carried on in the Southern Region of India. It is restricted to


Hyderabad. I have visited people randomly nearby my locality, different shopping malls,
small retailers etc.

Data sources:

Research is totally based on primary data. Secondary data can be used only for the
reference. Research has been done by primary data collection, and interacting with
various people has collected primary data. The secondary data has been collected through
various journals and websites and some special publications of R-MONEY.

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Review of Literature:

This very journal is basically an interview, which is done by Patrick Crogan to Samuel
Weber. The title is Targeting, Television and Networking: An Interview with Samuel
Weber. Here a light is thrown on various aspects by the interviewee on the targeting,
media and networking. According to him; the ‘target’ is someone who doesn’t fit the
usual criteria. So one don’t have the same kind of search procedures as in the normal
hiring process.

The target of opportunity can be a function of affirmative action policy or be somebody


whose qualifications are unusual enough that one would not find them with a regular
search process following criteria peculiar to an individual discipline. On the one hand the
association of targeting with the aim of controlling the future, controlling the
environment by identifying a target, localizing it and hitting it or reaching it, depending
on what area a person is in, and on the other hand the notion of opportunity, which
suggests the unpredictable emergence of an event that can’t be entirely planned. The
coupling of the two terms suggests that targeting, rather than just designating an abstract
activity in which, unencumbered by constraints of time and space, he identify something
that he/she wants to accomplish or goals to be reach and then everything is done to
achieve that, involves responding in a very determinate situation spatially and temporally
to an unpredicted, unforeseen event, trying to get that event in some sense under control.

The word ‘opportunity’ itself is interesting because it already condenses this idea of the
unpredictable, singular event being turned into an occasion to do something else. An
opportunity means precisely to be able to do something with the event. Quite literally, the
word suggests a portal, op-port-unity; a gateway through which one can pass into another
domain. The latter can be construed as a realm of goals, and then the opportunity is
instrumental zed, like the target. But it can also suggest an area that may not be definable
strictly or primarily in terms of goals, aims or ends. In the latter case, you can’t be
absolutely sure that you are going to be able to reach your target or even that there is one.
So you have this tension between the two terms, target and opportunity.

In the financial domain as well, where the maximization of profit in the short term takes
precedence over all other considerations and has come to undermine the very foundations
of the capitalist economy that produced it in the first place. The current financial crisis
deriving from the use of ‘sub prime mortgages’ is an excellent example of this tendency.
Targeting in this sense seeks to eliminate the uncertainties of time by considering it
primarily as ‘short term’ and thus as amenable to the accomplishment of certain goals,
the maximization of profit primarily, without worrying about what comes next. One
reaction to this is the growth of ecological concerns, about ‘sustainable’ growth, but these
are then quickly exploited by the very same system dominated by finance capital and
short-term profit maximization. Overall, the journal speaks about concept of targeting
and opportunities in common. Though the real methodology is not been specified to do
targeting but the concepts it has discussed are really helpful for one who wants to do a
project on targeting.

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Findings and Suggestion:

In Equity Schemes we have taken Reliance Vision 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 Debt scheme we have taken Reliance money Manager Fund and Reliance Liquidity
Fund .In it both schemes are 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 are 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:

The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should be
made to realize that ignorance is no longer bliss and what they are losing by not
investing. Mutual funds and Insurance policies offer a lot of benefit, which no other
single option could offer. But most of the people are not even aware of what actually a
mutual fund is and moreover they are still unaware of the combination of Mutual Fund +
Insurance Policy, i.e. SIP+INSURE PLAN. They only see it as just another investment
option. So the advisors should try to change their mindsets.

The advisors should target for more and more young investors. Young investors as well
as persons at the height of their career would like to go for advisors due to lack of
expertise and time. The advisors may try to highlight some of the value added benefits of
MFs such as tax benefit, rupee cost averaging, and systematic transfer plan, rebalancing
etc. these benefits are not offered by other options single handedly. So these are enough
to drive the investors towards mutual funds. Investors could also try to increase the
spectrum of services offered. Now the most important reason for not availing the services
of advisors was spotted was being expensive.

The advisors should try to charge a nominal fee at the beginning. But if not possible then
they could go for offering more services and benefits at the existing rate. They should
also maintain their decency and follow the code of ethics so that the investors could trust
upon them. Thus the advisors should try to attract more and more persons and turn them
into investors and finally their clients.

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SWOT Analysis:

Strength:

• _____________________________,
• _____________________________,
• _____________________________,
• _____________________________.

Weakness:

• _____________________________,
• _____________________________,
• _____________________________,
• _____________________________.

Opportunities:

• _____________________________,
• _____________________________,
• _____________________________,
• _____________________________.

Threads:

• _____________________________,
• _____________________________,
• _____________________________,
• _____________________________.

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Conclusion:

Mutual Fund investment is better than other raising fund. Reliance Mutual Fund has good
returns in investment. 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. 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.

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Bibliography:

1. www.reliancemoney.com,
2. www.reliancecapital.co.in,
3. www.relianceadaggroup.com,
4. www.mutualfundsindia.com,
5. www.amfindia.com,
6. www.investopedia.com,
7. www.wikipedia.org,
8. www.reliancemoney.co.in,
9. www.google.com.

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Questionnaire:

1. Have you invested /are you interested to invest in mutual funds or to take an
Insurance policy?
• Yes
• No

2. What is the most important reason for not investing in mutual funds and in
Insurance policies?
• Lack of knowledge about mutual funds/insurance,
• Enjoys investing in other options,
• Its benefits are not enough to drive you for investment,
• No trust over the fund managers.

1. Where do you find yourself as a mutual fund investor/an insurance policy owner?
• Totally ignorant,
• Partial knowledge of mutual funds,
• Aware only of any specific scheme in which you invested,
• Fully aware.

1. Where from you purchase mutual funds/insurance policy?


• Directly from the AMCs,
• Brokers only,
• Brokers/ sub-brokers,
• Other sources.

1. Which feature of the mutual funds allures you most?


• Diversification,
• Professional management,
• Reduction in risk and transaction cost,
• Helps in achieving long-term goals.

1. According to you, which is the most suitable stage to invest in mutual funds/take
an Insurance policy?
• Young unmarried stage,
• Young Married with children stage,
• Married with older children stage,
• Pre-retirement stage.

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