A

SYNOPSIS ON

TAX SAVING SCHEMES IN MUTUAL FUNDS

AT

RELIANCE LIFE INSURANCE

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD OF THE

MASTER OF BUSINESS ADMINISTRATION

BY
AYESHA BEGUM
H.T. NO: 1170-18-672-098

Department of management studies

RG KEDIA COLLEGE OF COMMERCE

ESAMIA BAZAR, HYDERABAD, TELANGANA

2018-20
 INDEX

S. No. CHAPTER Page No

1 INTRODUCTION 01-02

2 NEED OF THE STUDY 03

3 SCOPE OF THE STUDY 03

4 OBJECTIVES OF THE STUDY 03

5 RESEARCH METHODOLOGY 04

6 LIMITATIONS OF THE STUDY 05

7 CHAPTER PLANS 05

8 REVIEW OF LITERATURE 06-07

9 BIBLIOGRAPHY 08
MUTUAL FUND INDUSTRY

An Overview

The mutual fund industry in india began with the setting up of the Unit Trust of india
(UTI) in 1963 by the Government of India. Till the year 2000, UTI has grown to be a dominant
player in the industry with the assets of over Rs. 76,547 crores as of March 31, 2000. the UTI is
governed by a special legislation, the Unit Trust of India Act, 1963. in 1987 public sector banks
and insurance companies were permitted to set up mutual funds. Also the two insurance
companies LIC and GIC established mutual funds. Securities Exchange Board of India (SEBI)
formulated the Mutual Fund (Regulation) 1993, which for the first time established a
comprehensive regulatory framework for the mutual fund industry. Since then several mutual
funds have been set up by the private and the joint sectrors.

Growth of Mutual Funds

The Indian Mutual Fund has passed through three phases. The first phase was between
1964 and 1987 and the only player was the Unit Trust of India, which had a total assets of Rs. 6700
crores at the end of 1988. The second phase is between 1987 and 1993 in which period 8 funds
were established (6 by banks and one each by LIC and GIC). The total assets under management
had grown to rs. 61028 crores at the end of 1994 and the number of schemes were 167.

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INTRODUCTION

The third phase began with the entry of private and foreign sectors in the Mutual Fund
industry in 1993. Kothari Pioneer Mutual Fund was the first fund to be established the private
sector in association with a foreign fund. At the end of financial year 2000 (31 st March) funds
were functioning with Rs. 113005 crores as total assets under management. As on August end
2000 there were 33 funds with 391 schemes and assets under management with Rs. 102849 crores.

As you probably know, mutual funds have become extremely popular over the last 20
years. What was once just another obscure financial instrument is now a part of our daily lives.
More than 80 million people, or one half of the households in America, invest in mutual funds
That means that, in the United States alone, trillions (yes, with a "T") of dollars are invested in
mutual funds.

In fact, to many people, investing meaying mutual funds. After all, it's common knowledge
that incesting in mutual funds is (or at least should be) better than simply letting your cash waste
away in a savings account, but, for most people, that's where the understanding of funds ends. It
doesn't help that mutual fund salespeople speak a strange language that, sounding sort of like
English, is interspersed with jargon like MER, NAVPS, load/no-load, etc.

Originally mutual funds were heralded as a way for the little guy to get a piece of the
market. Instead of spending all your free time buried in the financial pages of the Wall
Street Journal, all you have to do is buy a mutual fund and you'd be set on your way to
financial freedom. As you might have guessed, it's not that easy. Mutual funds are an
excellent idea in theory, but, in reality, they haven't always delivered. Not all mutual funds
are created equal, and investing in mutuals isn't as easy as throwing your money at the first
salesperson who solicits your business.

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OBJECTIVES OF THE STUDY:

 To study the tax savings scheme on mutual funds, its performance in the market, and its
exposure to stock.

 To study the potential of mutual funds in Relaince Securities Limited.

 To analyse the performance of various mutual funds schemes and suggests the best one.

SCOPE OF THE STUDY

The present study comprise of 5 mutual fund schemes launched by different sector. The time of
this period of this research work is from April 2014 to March 2018. The NAV of the selected
scheme have been compared for five years with an annual return. Then these schemes have been
compared with the bench mark return to evaluate the performance of these equity schemes.

SIGNIFICANCE OF THE STUDY

Evaluating the historical performance of mutual funds is important both for investors as well as
portfolio managers. It enables an investor to access as to how much return has been generated by
the portfolio manager and what risk level has been assumed in generating such returns. Further, an
investor can also appraise the comparative performance of different fund managers. Similarly fund
managers would also be able to know their performance over time and also other competitors in the
industry. The evaluation also provides a mechanism for identifying strengths and weaknesses of
fund managers in the investment process, which helps them to take corrective action.

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RESEARCH METHODOLOGY

RESEARCH DESIGN
The quality of any research project will be enhanced by a good understanding of research
design. Research design is a layout of the executing research project. Research design is
the way of systematic collection of data and analysis of data which is relevant to the
objective of the research project. Its cyanotype for the collection, measurement and
analysis of data.

For this research study descriptive research design has been applied and also data
collection is secondary data sources of information. Method of collecting the secondary
data was collected from the Association of Mutual Fund India, BSE India etc. initially this
study tries to evaluate the performance of the 20 equity mutual fund schemes.

SOURCES OF DATA:

 Secondary data:This data has been collected from the financial reports and statements of
the company.

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LIMITATIONS OF THE STUDY:
 The study is limited to the mutual Fund of Reliance securities limited.
 It studies about its performance and tax savings.
 The duration of the study is limited.

CHAPTER PLAN

CHAPTER -1 - INTRODUCTION

In this first chapter will provide introduction of the topic and need, scope, objectives of the
study. project limitations and methodology of the study.

CHAPTER - 2 REVIEW OF LITERATURE

This chapter includes different authors written articles and brief explanation of the topic.

CHAPTER - 3 - INDUSTRY PROFILE & COMPANY PROFILE

Chapter 3 explain about how industry growing in India what are the strategies and explain
about company like history of the company, board of directors, awards, milestones and
product etc.

CHAPTER - 4 - DATA ANALYSIS AND INTERPRETATION

CHAPTER - 5 - FINDINGS, SUGGESTIONS, CONCLUSION,

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 REVIEW OF LITERATURE

Dr.Umarani.M.B-2012-Growth of Indian mutual fund industry in the past decade:

The mutual fund industry has grown satisfactorily over the past decade. From the days when
it was felt that a savings oriented institution like the unit trust of India needs to be established
in the early 1960’s, the industry has grown enormously in the past decade. In fact, the entire
nature of the industry has completely not only in quantitative aspects. The mutual fund
industry now proffers a very wide range of choices for investment to the potential investors.
The industry has grown in stature to such an extent that it now acts as a reasonably strong
counter-force to the foreign institutional investors in the stock markets during times of
high volatility which is the hall mark of the sustained intermediate bull-runs in the stock
markets This present paper makes an attempt to assess the growth of funds and suggests
certain steps that need to be initiated by all players of the industry in a concerted
manner to create an atmosphere that will take the Indian mutual fund industry to its next level
of growth.

Rizwan Ali-2014- Performance Evaluation of Mutual Funds:

The aim of conducting this research is to find out the investment tendency in mutual
funds of Pakistan, Conventional Vs Islamic. The study is also aimed at finding out the
role of mutual fund investment in Pakistan. This study also finds out the factors
effecting the investment in mutual funds and measure the performance of mutual funds
through the models which are used worldwide to evaluate the investment tendency in
the area of mutual funds through portfolio(Risk/Return) Sharpe Measure and Treynor
Measure, to make the best point for investment through graphical representation for
both conventional and Islamic, which is much easier to take better decision for investment
either sell or buy.

6
Shivangi Agarwal, Nawazish Mirza-2017- A STUDY ON THE RISK-ADJUSTED
PERFORMANCE OF MUTUAL FUNDS INDUSTRY IN INDIA:
Investing through mutual funds has gained interest in recent years as it offers optimal risk
adjusted returns to investors. The Indian market is no exception and has witnessed a
multi fold growth in mutual funds over the years. As of 2016, the Indian market is crowded
with over two thousand mutual fund schemes, each promising higher returns compared to
their peers. This comes as a challenge for an ordinary investor to select the best portfolio to
in-vest making it critical to analyse the performance of these funds. While understanding and
analysing the historical performance of mutual funds do not guarantee future performance,
however, this may give an idea of how the fund is likely to perform in different market
conditions. In this research we address multiple research issues. These include measuring the
performance of selected mutual schemes on the basis of risk and return and compare
the performance of these selected schemes with benchmark index to see whether the
scheme is outperforming or underperforming the benchmark. We also rank funds on the
basis of performance and suggest strategies to invest in a mutual fund and therefore, our
findings have significant relevance for investing public.

Reepu-2017- A STUDY OF MUTUAL FUNDS:

Three Boston executives in 1924 pooled their money with no idea of how popular the
assemblage would become. The formation of Unit Trust of India, 1963 along with the
inventiveness of Government of India and Reserve Bank, led to the dawn of new
industry i.e. mutual fund industry in India. Its huge corpus enables diversification,
thereby minimizing the risks and maximizing the returns. In order to become customer’s
preference now-a-days, numerous specialised plans in specific to retirement, children etc
have also been fabricated. The present paper is an attempt to know about Mutual Fund, it’s
various schemes and analyse the different risk factors involved.

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 BIBLIOGRAPHY
BOOKS:
1. H.Prem Raja ,2007, “Systematic Study of Income Tax”.
2. Allen, F. and D. Gale, 1989, “Optimal Security Design,” Review of Financial Studies, 1 (3),
229–263.
3. Allen, F. and G. Gorton, 1993, “Churning Bubbles,” Review of Economic Studies, 60 (4), 813-
836.
4. Biais, B., T. Foucault, and F. Salanié, 1998, “Floors, Dealer Markets and Limit Order Markets,”
Journal of Financial Markets, 1, 253-284.

DATA SOURCES:-

5. www.reliancesecurities.com
6. www.kotakmutual.com
7. www.principalindia.com
8. www.templetonindia.com
9. www.reliancemutual.com
10.www.google.com
11. www.myiris.com