A SYNOPSIS

On
A comparative study of Balanced Mutual Fund of Reliance Mutual Fund &
UTI Mutual Fund Companies in India on the basis of their NAV ( Net Asset
Value) a study of last Five year
(2008 2013)
Submitted to:



Priyadarshini Lokmanya Tilak Institute of Management Studies & Research,
Nagpur
Submitted by:
Omprakash B. Nimbarte
Faculty Guide:
Prof. Rahul Kapale
2013-2014

1. INTRODUCTION OF TOPIC
Mutual Fund
There are a lot of investment avenues available today in the financial market for an investor with
an investable 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.

Concept of mutual fund
A mutual fund is a common pool of money into which investors place their contributions
That is to be invested in accordance with a stated objective. 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 bears to the total
amount of the fund.
Mutual Funds are trusts, which accept savings from investors and invest the same in diversified
financial instruments in terms of objectives set out in the trusts deed with the view to reduce the
risk and maximize the income and capital appreciation for distribution for the members. 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. The objective sought to be achieved by Mutual Fund is to provide an
opportunity for Lower income groups to acquire without much difficulty financial assets. They
cater mainly to the needs of the individual investor whose means are small and to manage
investors portfolio in a manner that provides a regular income, growth, safety, liquidity and
diversification opportunities.

DEFINITION:
Mutual funds are collective savings and investment vehicles where savings of small
(or sometimes big) investors are pooled together to invest for their mutual benefit and returns
Distributed proportionately.
A mutual fund is an investment that pools your money with the money of an unlimited
Number of other investors. In return, you and the other investors each own shares of the fund.
The fund's assets are invested according to an investment objective into the fund's portfolio of
Investments. Aggressive growth funds seek long-term capital growth by investing primarily in
Stocks of fast-growing smaller companies or market segments. Aggressive growth funds are also
Called capital appreciation funds.















2 .Company Profile

A) 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. Reliance Mutual Fund was formed for launching of various scheme 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.
2RMF is one of Indias leading Mutual Funds, with Average Assets under Management
(AAUM) of Rs.88, 388 crs (AAUM for 30th April 09) and an investor base of over 7153 Lacs.
Reliance Mutual Fund, 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 round portfolio of
product to meet varying investor requirements and has presence in 118 cities across the country.

Reliance Mutual Fund constantly endeavors to launch innovative product and customer
service initiative to increase value to investor. Reliance Mutual fund scheme are managed by
Reliance Capital Asset Management Ltd, a subsidiary of Reliance Capital Ltd. which hold 93.37
of the paid up capital RCAM the balance paid up capital being held by minority share holders.








B) UTI MUTUAL FUND

UNIT TRUST OF INDIA MUTUAL FUND
Unit Trust of India was creating by the UTI Act passed by the parliament in 1963. For more than
two decades it remained the sole vehicle for investment in the capital market by the Indian
citizen in mid-1980s public sector bank were allowed to open mutual fund. The real vibrancy and
competition in the MF industry came with setting up of the Regulator SEBI and its laying down
the MF regulation 1993. UTI maintained its pre-eminent place till 2001 when a massive decline
in the market indices and negative investor sentiment after Ketan parekh scam created doubt
about the capacity of UTI to meet its obligation to the investors. This was further compounded
by two factor namely its flagship and largest scheme US 64 was sold and re- purchase not at
intrinsic NAV but artificial price and Assured Return scheme had promised returns as high as
18% over a period going up to two decades.
In order to distance Government from running a mutual fund the ownership was
transferred to four institutions, namely SBI, LIC, BOB, & PNB each owning 25%. UTI lost its
market dominance rapidly and by end of 2005, when the new share holder actually paid the
consideration money to Government its market share had come down to close to 10%.










3. REASON FOR SELECTING A TOPIC

The main purpose of doing this project was to know about mutual fund and its functioning. This
help to know in details about mutual fund industry right from its inception stage growth and
future prospects.
It also helps in understanding different scheme of mutual fund. Because my study depends upon
prominent fund in India and their scheme like balance as well as the returns associated with those
schemes.
















4. Objective of study

The basic objective of this study is as follows:
To study about the benefit available from mutual fund investment.
To study about the market trend of mutual fund investment.
To study some mutual fund companies and their fund.
To compare the NAVs of Reliance MF & UTI MF with respect o their balanced MF
schemes.











5. RESEARCH METHODOLOGY

Research methodology is a method to solve the research problem systematically. It
involves gathering data, use of statistical techniques, interpretation, and drawing conclusion
about the research data. It is a blueprint, which is followed to complete the study. It is similar to
builders blue-print for building a house.

There are two types of Research Methodology:

I. Primary Data.
II. Secondary Data.

Data Collection:

I. Primary Data:
The data directly collected by the researcher, with respect to the problem under study, is
known as primary data. Primary data is also the firsthand data collected by the researcher for the
immediate purpose of the study.
The methodology I have adopted for my study is various tools, which basically analyze
critical financial position of the organization.



II. Secondary Data:
Secondary data are statistics that already exist. They have been gathered not for
immediate use. This may be described as those data that have been compiled by some agency other
than the user.
Secondary data are those data which gather information through following method:
a) Internet.
b) Books.
c) Newspaper.










6. Scheme of chapters for main research project




Chapter No.

Contents

Page No.
1 INTRODUCTION
1.1
Mutual fund An Introduction
1.2
Need, Scope & Period of study
1.3
Objectives of study
1.4
Importance of study
2 RESEARCH METHODOLOGY
2.1
Data collection

2.2 Limitations of study
3 INDUSTRY PROFILE &
COMPANY PROFILE

4 ANALYSIS AND INTREPRETATION
5 CONCLUSION
6 APPENDICES
Bibliography
Searching a fact sheet both are companies for the year (
2008 to 2013)