NAME

NEHAL AGHARA

GUIDED BY KULDEEP JOBANPUTRA

SUBMITTED TO SAURASHTRA UNIVERSITY

COLLEGE

R.P.BHALODIA COLLEGE

DECLARATION.
I Undersigned , Aghara Nehal G. student of T.Y.B.B.A of Shree R.P.Bhalodia College declare that the findings presented in this report is my own work and is carried out under supervision and guidance of my faculty members of college. The project report is not fake, it is prepared by a visit to the reputed institution.

This project work has not been submitted to any other university or for any other examination.

Date : Place : RAJKOT. Signature (Aghara Nehal)

ACKNOWELEDGMENT
The project report on RELIANCE Mutual Fund would have been impossible without the support of many persons directly and indirectly. I would like thank them all for sparing their valuable time and encouraging me. I would firstly like to thank Saurashtra University for giving us the opportunity to undergo the training part of service sector ,i.e. the bank and knowing there workings . Then I would like thank to our college Shree R.P.Bhalodia College for supporting me to prepare the report, and also my faculty members to encourage me to undergo the training sections of bank and help me to overcome the burden of studies also. I would now like thank RELIANCE Mutual Fund institute to allow me to take training for preparing the report and the head of department Mr.Mayur to help me in understanding the concept of mutual fund , and other staff members of institute. I would like to thank my family and friends for their support.

PREFACE
Practical training is an important part of management studies. Only knowledge of books is not enough. Marketing research plays an important role in the development of a student as it allow the student to interact with different individuals in the field from getting the permission for the project upto the completion of the project. This helps the student to get aware about the future he or she is going to face. During the academic year 2007 08 as a part of our studies I have undergone the project work on service sector i.e. Reliance Mutual Fund. It was really a great experience for me , and it has helped me a lot to improve my knowledge about mutual funds and working of institute .It also help us in developing our personality and contacts with the finance institute, which helps us in future to accomplish our goals . This project is very helpful to every reader as it provide all information about mutual funds and its investment criteria.

INDEX.

SR. NO.

TOPICS. GENERAL INFORMATION PRODUCTS DEPARTMENT MARKETING DEPARTMENT RESEARCH METHODOLOGHY ANALATICAL FINDINGS

PAGE NO. 6-14 15-33 34-36 37-40 41-49

COMMENTS RECOMMENDATIONS SWOT ANALYSIS CONCLUSION BIBLIOGRPHY

50-51 52-53 54-56 57-58 59-60

EXECUTIVE SUMMARY.
The economy is highly influenced by the financial system of the country The Indian Financial System has been broadly divided into two segment the organized and the unorganized. An investor has a wide array of investment avenues available. Economic well being in the long run depends significantly on how wisely he invests. For todays complex financial scenario a Mutual Fund is the ideal investment option. Markets for other investment avenues have become information driven. The Mutual Fund Industry in India began with the setting of the Unit Trust of India (UTI) in 1964 by the Government of India. Ever since then this industry has witnessed numerous changes and growth. In 1987 public sector banks and insurance companies were permitted to set up Mutual Funds. Securities Exchange Board of the 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 joint sectors and the share of the private players has risen sharply. When investors are confronted with an astounding range of products from traditional bank deposits to downright shady money multiplier schemes, it has to be judged on the yardsticks of return , liquidity, safety, convenience and tax efficiency . An important question facing many investors across the country is whether one should invest in a bank fixed deposit or should deposit the amount with a debt oriented Mutual Fund.

CONCEPT AND ROLE OF MUTUAL FUND.

A mutual fund is a pool of money collected from investors and is

invested according to certain investment objectives. A mutual fund is created when investors put their money together . It is therefore a pool of investors fund. The term mutual means that the investors contribute to the pool and also benefit from the pool. There are no other claimants to the funds. The pool of funds held mutually by investors is the mutual fund. A mutual funds business is to invest the funds thus collected , according to the wishes of the investors who crested the pool. In many markets these wishes are articulated as investment mandates. The investor appoints professional investment managers, to manage their funds. The same objective is achieved when professional investment managers create a product and offer it for investment to the investors.
The most important characteristics of the mutual fund are that the

contributors and the beneficiaries of the fund are the same class of people, namely the investors.
A mutual fund belongs to the investors who have pooled their

funds. The ownership of the fund is in the hands of investors. Investment professionals and other service providers, who earn a fee for their services, from the fund, manage the mutual fund. The pool of fund is invested in a portfolio of marketable investments. The value portfolio is updated everyday.

 The investment portfolio of the mutual fund is created according to the stated investment objectives of the fund. The investors share in the fund is denominated by units . The value of the units changes with change in the portfolios value everyday.

ADVANTAGES OF MUTUAL FUNDS TO INVESTORS.

1. Portfolio diversification 2. Professional management 3. Reduction in risk 4. Reduction of transaction costs 5. Convenience and flexibility 6. Liquidity.

DISADVANTAGES OF INVESTING IN MUTUAL FUND.

1. No control over cost : Since investors do not directly monitor

the funds operation they cannot control the cost effectively . Regulators therefore usually limit the expense of the mutual funds. 2. No tailor- made portfolios : Mutual fund portfolios are created and marketed by AMCS , into which investors invest. They cannot create tailor made portfolios. 3. Managing a portfolio of funds : As the number of mutual funds increases , in order to tailor a portfolio for himself, an investor may be holding a portfolio of funds, with the costs of monitoring them and using them, being incurred by him.

PROFESSIONAL MANAGEMENT MUTUAL FUND.

A. Mutual funds are managed by investment managers (AMC) who are appointed by trustees and bound by the investment management agreement, on the hows and investment management functions. B. AMCs are also required to be adequately capitalized, and are closely regulated by SEBI. AMCs competing for funds under management therefore bring in significant professional expertise and are bound by regulatory and trustee supervision. C. AMCs are prohibited by regulation to indulge in other business.
D. Regulation also ensures that trustees are able to monitor the

whys of their

performance of AMCs, and there are a number of safeguards and prudential regulations in the interest of investors. E. Investment managers and funds are also bound by the AMFI code of ethics, which foster professional standards in the industry. LIQUIDITY FEATURES OF MUTUAL FUND INVESTMENT 1.Most of the funds being sold today are open-ended . That is, investors can sell their existing units, or buy new units at any point of time, at prices that are related to the NAV of the fund on the date of the transaction. 2.Since investors continuously enter and exit funds, funds are actually able to provide liquidity to investors, even if the underlying market, in which the portfolio is invested doesnt have liquidity.

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IMPORTANT PHASES IN HISTORY OF MUTUAL FUNDS IN INDIA .

1963 1987 : The Unit Trust of India was the sole player in the industry. It was created by an Act of Parliament in 1963, UTI launched its first product, the Unit Scheme 1964, which even today is the single largest mutual fund scheme. UTI created a number of products such as monthly income plan, childrens plan, equity oriented schemes and offshore funds during this period. UTI managed assets of 6710 Cr Rs 1987 1993 : In 1987 public sector banks and financial institutions entered the mutual fund industry. SBI mutual fund was the first non UTI fund to be set up in 1987. Significant shift of investors from deposits to mutual fund industry happened during this period. Most funds were growth oriented closed- ended funds. By the end of this period, assets under UTIs management grew to Rs. 38,247 Cr and public sector funds managed Rs. 8750 Cr. 1993 1996 : In 1993, mutual fund industry was open to private sector players, both Indian and foreign. SEBIsfirst set of regulations for the industry were formulated in 1993, and substantially revised in 1996. Significant innovations in servicing, product design and information disclosure happened in this phase, mostly initiated by private sector players.

1996 1999 : The implementations of the new SEBI regulations and the restructuring of the mutual fund industry led to rapid assed
11

growth. Bank mutual funds were re-cast according to the SEBI recommendation structure, and UTI came under voluntary SEBI supervision.
1999 2003 : This phase was marked by very rapid growth in

industry , and significant increase in market shares of private sector players. Assets crossed Rs. 1,00,000 Cr. The tax break offered to mutual funds in 1999 created arbitrage opportunities for a number of institutional players. Bond funds and liquid funds registered the highest growth in this period , accounting for nearly 60% of the assets. UTIs share of the industry dropped50%.

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REGULAR PERIODIC SAVING IN MUTUAL FUNDS :

Mutual funds units in modern times are issued as account

statements, with the facility to hold units in fractions up to 4 decimal points. It is also simpler for investors to make additional investments, tore-invest dividends, to converts their holding in one fund into a holding in another, and to alter the investment options regarding their periodical dividends. These facilities make it possible for small investors to regularly save a fixed amount in a mutual fund, and create saving plans that suit their saving habits and financial goals.

RISK FACTOR :
Mutual funds invest in a portfolio of securities. This means that all

funds are not invested in the same investment avenue. It is well known that risk and returns of various investment options do not uniformly or in sympathy with one another. If a Pharma company share is going down, an InfoTech companys may be moving up. Therefore holding a portfolio that is diversified across investment avenues is a wise way to manage risk. When such a portfolio is liquid and marketed to market, it enables investors to continuously evaluate the portfolio and manage their risks more efficiently.

13

14

PRODUCTS OF MUTUAL FUND :

Mutual funds are investment portfolios that invest financial market instrument .These portfolio are created by pooling investor contributors, usually denominated in units. There are a variety of ways which mutual funds are created, to cater to varied risk and return requirement of investors. Depending on the investment portfolio that is created, and the segment of the various markets in which funds are invested, there is a choice of funds to investors.

GENERIC CHOICES TO MUTUAL FUND INVESTOR

Nature of participation :

1. OPEN- ENDED FUNDS : In an open ended fund, investors can

buy and sell units of the fund, at NAV related prices, at any time directly from the fund. This is called an open ended fund because the pool of funds is open for additional sales and repurchases. Therefore, both the amount of funds, that the mutual fund manages and the number of units, vary everyday. The price at which investors buy or sell units is linked to the NAV. Open-ended funds have to balance the interests of the investors who come in, investors who go out and investors who stay invested.
2. CLOSED-END FUNDS : A closed-end fund is open for sale to

investors for a specific period, after which further sales are closed. Any further transaction for buying the units or repurchasing them, happen in the secondary markets, where closed end funds are listed. Therefore , new investors buy from the exiting investors

15

,and exiting investors can liquidate their units by selling them to other willing buyers . In closed end fund, thus the pool of funds can technically be kept constant . Investors in close end funds receive either certificates or depository receipts, for their holding in a close end mutual funds.

Nature of income distribution :

1. Dividend Option: Investors, who choose a dividend option on their

investments, will receive dividend from mutual fund, as and when such dividends are declared.
2. Growth Option: Investors who do not require periodic income

distributions can choose the growth option, where the incomes earned are retained in the investment portfolio, and allowed to grow, rather than being distributed to investors.
3. Re-investment Option: Mutual funds also provide another option to

investors in the form of re-investment. Investors re-invest the dividends that are declared by the mutual fund, back into the fund itself at NAV that is prevalent at the time of re-investment.

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TYPES

OF

PRODUCT

OFFERED

BY

MUTUAL FUND:
1. EQUTIY FUNDS: Equity funds are those that invest pre-

dominantly in equity share of companies. There is variety of ways in which an equity portfolio is created for the investors. Types of Schemes in Equity Funds:

RELIANCE Growth Fund RELIANCE Long Term Advantage Fund RELIANCE Index Fund RELIANCE Equity Fund RELIANCE Capital Builder Fund RELIANCE Tax saver Fund RELIANCE Top 200 Fund RELIANCE Core & Satellite Fund RELIANCE Premier Multi-Cap Fund RELIANCE Long Term Equity Fund

2. DEBT FUND: Debt funds are those that invest pre-dominantly in

debt securities. Since most securities pay periodic interest to investors, these funds are also known as income funds. However, it must be remembered that funds investing in debt securities compromise of long term instruments such as bond issues by central and state government, public sector organizations, public financial institutions and private sector companies, and short term

17

instruments such as call money lending , commercial papers, certificates of deposits and treasury bills. Types of Schemes in Debt Funds:
RELIANCE Income Fund RELIANCE Liquid Fund RELIANCE Gilt Fund Short Term Plan RELIANCE Liquid Fund PREMIUM PLUS RELIANCE Short Term- PREMIUNM PLUS PLAN RELIANCE High Interest Fund RELIANCE Cash Management Fund RELIANCE Monthly Income Plan RELIANCE Multiple Yield Fund RELIANCE Fixed Maturity Plan

3. BALANCED FUND: Funds that invest both in equity and debt

markets are called balanced funds. A typically balanced fund would be almost equally invested in both the markets. The variations are funds that invest pre-dominantly in equity (about 70%) and keep smaller part of their portfolios in debt securities. A balanced fund also tends to provide investors exposure to both equity and debt markets in one product.

Types of Schemes in Balanced Fund:

RELIANCE Childrens Gift Fund Investment Plan 18

 RELIANCE Childrens Gift Fund Savings Plan RELIANCE Balanced Fund RELIANCE Prudence Fund

LOAD FUNDS AND NO-LOAD FUNDS :

Investment managers charge a fee for managing funds, and also impose certain operational costs on the investment income of a fund. These are usually called load. Whether the investors or the AMCs bear these costs in what differentiates a load fund and a no-load fund.
LOAD : Load is the factor that is applied to the NAV of a scheme

to arrive at the price. If a commission is paid to agents, to bring in new business, this represents a cost incurred by the mutual fund, for the additional sales. The fund may therefore decide that investors, who are already in the scheme, need not bear this cost. Therefore it may decide to impose this cost on the new investors, by increasing the price at which they can buy units. This is called the entry load or the sales load . Similarly, if investors stays in a fund for a short while, and decided to repurchase his units, the fund may incur same costs in liquidating the portfolio and paying off this investor. The fund may want to impose the costs of this operation on the exiting investor, in form of a load. This is called an exist load .
SALE AND REPURCHASE PRICE : The sale price is that price at

which a mutual fund is willing to sell the units to investors. An investor, who buys or invests in a mutual fund, pays the sales price. The repurchase price represents the price at which the mutual fund
19

is willing to buy the units back from the investor. That is the price at which the investor can sell his holdings to mutual fund. The mutual fund decided the sale and repurchase price, based on the NAV of the scheme. However, mutual funds did not make units available for sale and repurchase at the NAV of the scheme. They can alter the NAV by a factor called the load and charge a different sale and repurchase prices.

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FUND STRUCTURE :
The structure of mutual funds in India is governed by the SEBI Regulations, 1996. The regulations make it mandatory for mutual funds to have a three-tier structure of Sponsor Trustee AMC . The sponsor is the promoter of the mutual fund, and appoints the Trustee. The trustees are responsible to the investors in the mutual fund, and appoint the AMC for managing the investment portfolio. The AMC is the business face of the mutual fund, as it manages all the affairs of the mutual fund. The mutual fund and the AMC have to be registered with SEBI.

SPONSOR TRUSTEE AMC-ASSET MANAGEMENT COMPANY.

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1.

Sponsor :

The Sponsor is the promoter of the mutual fund. The sponsor establishes the mutual fund and registers the same with SEBI. DUTIES OF SPONSOR : 1) Sponsor appoints the trustees, custodians and the AMC with prior approval of SEBI and in accordance with SEBI regulations. 2) Sponsor must be carrying on business in financial services for a minimum period of five years. 3) Net worth of sponsor is positive in all preceding five years. 4) Net worth in immediately proceeding year is more than capital.
5) Sponsor must have been profit making in at least 3 of the

immediately preceding 5 years including the 5th year. 6) Sponsor must contribute at least 40% of the net worth of the AMC. STRUTURE OF MUTUAL FUND : 1. Company form, in which investors hold shares of the mutual fund. In this structure, management of the firm is in the hands of an elected board, which in turns appoints investment managers to manage the fund. 2. Trust form, in which the funds of investors are held by a trust, on behalf of the investors. The trust appoints investment managers and monitors their functioning in the interest of investors.

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MANAGING THE MUTUAL FUND : The sponsor acting through the trustee appoints all the functionaries required for managing the investors money. The functionaries are as follows : 1. Investment managers known as the AMC. 2. Registrars & transfer Agents. 3. Brokers
4. Selling & Distribution Agents .

5. Custodians 6. Depository Participants.

7. Legal Advisor and Auditors.

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2. Trustees :
The mutual fund, which is a trust is managed either by a Trust company or a Board of Trustees. Board of trustees and trust companies Are governed by the provisions of the Indian Trust Act. If the trustee is a company, it is also subjected to the provisions of the Indian Companies Act. It is responsibility of the trustees to protect the interest of the investors, whose fund is managed by the AMC. RIGHTS OF THE TRUSTEES :
1. Trustees appoint the AMC, in consultation with the sponsor

and according to SEBI regulations. 2. All mutual fund schemes floated by the AMC have to be approved by trustees 3. Trustees can seek information from the AMC on the operations and compliance of the mutual fund, with provision of the trust deed, investment management agreement and the SEBI regulations. These mandatory reviews and monitoring are to be made on quarterly basis.
4. Trustees can seek remedial action from AMC and in the

extreme situation of dissatisfaction with performance, dismiss the AMC.

3.AMC- Asset Management Company :

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The trustees on the advice of the usually appoints the AMC. The trust deed authorizes the trustees to appoint the AMC. The AMC is usually a private limited company , in which the sponsors and their associates or joint venture partners are shareholders. The AMC has to be a SEBI registered entity, and should have minimum net worth of Rs. 10 Cr. The trustees sign an investment management agreement which spells out the functions of the AMC. REGULATORY REQUIREMENT FOR THE AMC : 1. Only SEBI registered AMCs can be appointed as investment managers of mutual funds. 2. AMC must have a minimum net worth of Rs. 10 Cr. at all times 3. An AMC cannot be an AMC or Trustees of another mutual fund. 4. At least half of the members of the board of an AMC have to be independent . 5. The investment management agreement entered into the trustees and the AMC, spells out the rights and obligations of both parties. with the AMC,

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TYPES OF AMCs. :
AMCs owned by banks . AMCs owned by financial institutions. AMCs owned by the Indian private sector companies. AMCs owned by the foreign institutional investors. AMCs owned jointly by Indian and foreign sponsors. OBLIGATIONS OF THE AMCs :
1. Investments have to be according to the investment management

agreement and the SEBI regulations. 2. The actions of its employees and its associates have to be as mandated by the trustees. 3. AMCs have to submit detailed quarterly reports on the working and performance of the mutual fund, and compliance with SEBI regulations.
4. AMCs have to make the necessary statutory disclosures on

portfolio, NAV and price to investors. RESTRICTIONS ON THE BUSINESS ACTIVITIES OF AMCs : 1. The AMC shall not act as a trustee of any mutual funds. 2. AMC shall not undertake any business activity except in the nature of portfolio management services, management and advisory services to offshore funds etc, provided these activities are not in conflict with activities of mutual fund.

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3. AMC shall not invest in any of its scheme unless full disclosure of its intention to invest has been made in the offer document.

OFFER DOCUMENT AND KEY INFORMATION MEMORANDUM:

The mutual fund is required to file with the SEBI a detailed information memorandum in a prescribed format that provides all the information about the fund and the scheme. This document is also called as the Prospectus or the offer document and is very detailed and contains most of the relevant information that an investor would need. An abridged version of the offer document, in a prescribed format, is appended to the application form. Investors can get a summary of the other document, in the abridged version, which is also called as the key information memorandum. Investors have the right to ask for a free copy of the offer document.

IMPORTANCE OF OFFER DOCUMENT TO INVESTORS:

Offer document is very important for the following reasons: 1. Information about the scheme, and is fundamental attributes, are specified in the offer document. Therefore it forms the basis for the investors decisions. 2. Offer document is a legal document that specifies the details of the offer made by the mutual fund, and before buying the

27

mutual fund product, and investor must read and understand the terms of the offer.

28

BROAD CONTENTS OF THE OFFER DOCUMENT: 1. Preliminary Information. 2. Fund-specific Information 3. Scheme attributes 4. Details of the scheme being offered 5. Loads, fee structure and expenses 6. Unit holders rights 7. Associate transaction SUMMARY DISCLOSURE OF THE OFFER DOCUMENT: 1. Name of the mutual 2. Name of the Scheme 3. Type of the Scheme (growth, income , balanced ) 4. Name of the AMC 5. Classes of units offered for sale 6. Price of units 7. Name of the guarantor in case of assured return schemes 8. The opening, closing and earliest closing date of the offer 9. Mandatory statements

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STANDARD RISK FACTORS: Standard risk factors are SEBI stipulated factors that apply for mutual fund products as a category. These have to be stated in the first section of the offer document .The standard risk factors are: Mutual fund and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the mutual fund will be achieved. As with any investment in securities, the NAV of units issued under the scheme can go up or down, depending on factors and forces affecting capital markets.
Past performance of the sponsor/AMC/Mutual fund dose not

indicate the future performance of the scheme. The name of the scheme does not in any manner indicate other quality of the scheme or its future prospects and returns. Risk associated with the use of derivative instruments, if the fund plans to use such instruments. SCHEME SPECIFIC RISK FACTORS: 1. Risk arising from investment objective, investment strategy and asset allocation of a scheme. 2. Risk arising from non-diversification.
3. If a scheme offers assured returns, the scheme must state that

the assurance is on the basis of guarantees provided by sponsor/AMC. The net worth and liquidity of such guarantor should also be disclosed.

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4. If the AMC has no previous experience in managing a

mutual fund, a disclosure to the affect that this is the first scheme being launched under its management should be made. KEY INFORMATION MEMORANDUM: Since the offer document is very detailed, it is not feasible for mutual funds to provide them to all prospective investors. SEBI regulation allows mutual funds to summarize the key points in a summary document called the key information memorandum. It is mandatory that the key information to all investors, along with the application forms.

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INVESTMENT PLANS :
Investment plans are the different ways to reinvest in a scheme by investor. These are services offered by different mutual funds to their investors. These plans provide variable degree of convenience and flexibility to the investors. 1. Systematic investment plan (SIP) 2. Automatic Reinvestment plan (ARP) 3. Systematic Transfer plan (STP) 4. Systematic Withdrawal plan (SWP)

LARGE-CAP AND SMALL-CAP : The size of the company in the equity markets is determined by the number of the shares issued by the company times the market price at which the shares are traded. This number is called as market capitalization. If the market capitalization of the company is high, we call such a company as a large-cap company. Companies which are closely held, or are very small , tend to have a smaller market capitalization. These are called as small-cap companies. Research has shown that smallcap companies tend to be higher than that of large-cap companies.

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REQUIREMENTS FOR INVESTMENTS IN MUTUAL FUND :

SEBI regulations provide prudential guidelines regarding the investment management function of the mutual fund . The following are some of the significant regulatory requirements : 1. Mutual fund can invest only in marketable securities.
2. All investment by the mutual fund has to be the delivery basis that

is a mutual fund has to pay for each buy transaction, and delivery securities for every sell transactions. It cannot enter into trades with the view to squaring off the positions. 3. A mutual fund under all its schemes cannot hold more than 10% of the paid-up capital of a company. 4. Except in the case of Sectoral funds and index funds, a mutual fund scheme cannot invest more than 10% of its NAV in a single company. 5. Investments in rated investment grade issues of a single issuer cannot exceed 15% of the net assets can be extended to 20% , with the approval of the trustees. 6. Investment in unlisted shares cannot exceed 5% of net assets for an open-ended scheme, and 10% of net assets for a closed end scheme. 7. Mutual funds invest in a limited manner in treasury bonds and AAA rated corporate debt issued outside India.

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34

PROMOTIONAL ACTIVITIES
After the product has been planned, the channels of distribution of the product decided and the price structure evolved the next step is to decide upon the promotional activities that the firm may follow . It has rightly been said, Nothing happens until somebody sells something. This gives in a nutshell the philosophy of promotional activities . The promotional activities are concerned with . : (1) INFORMING the people about products distinctive want satisfying characteristics and its availability, (2) REMINDING people periodically about the product and its role and (3) PERSUADING the people / prospective buyers that make people to do what they might not otherwise do what they dont really want to do. Promotion is the all inclusive term representing the broad fieldadvertising, personal selling and sales promotion.

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CATALOGUES
These are printed in form in four to six pages or even more. They give information about the goods and services in greater details with the help of figures and illustrations in black and white or colors. Publishers, travel agencies, tourist departments , life insurance companies, medical firms or prestigious industrialists etc often use them. At the last page of browsers they are giving information related to RELIANCE Mutual Fund and services offered by them and about all branches.

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37

PROBLEM FORMULATION :
It has been perceived that there is huge potential market in Rajkot city. The strategy is to know the consumer needs & their behavior towards various available Investment options such as Secured Investment V/s Risk taking Investment. This is an analytical research. The consumer behavior towards Mutual Funds is to find out when they have different options available in the market for investment . During the time of recession in the market there was a serious shortage of short term management of funds in the hands of people .

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RESEARCH OBJECTIVE :
Primary Objectives : The study of Mutual Funds market in Rajkot was conducted with the primary objective to know the reason why do people prefer Mutual Funds during the time of recession in market. Secondary Objectives : 1. To know the awareness of Mutual Funds in the markets of Rajkot 2. To generate the awareness about Mutual Funds . 3. To know the investment objective, safety level and time period of investment 4. To know the share of Mutual Funds in investment portfolio of investors.

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SAMPLE SIZE :
SAMPLE SIZE : 100 Respondents. AREA COVERED : Rajkot INSTRUMENT USED : Questionnaire.

Questionnaire Structure :
Questionnaire Structure refers to the sequence in which the various subjects should appear on the questionnaire. The Questionnaire Structure is generally divided into five steps. 1). Opening or Lead in Questions : To start the flow of the response and gain rapport. 2). Qualifying Questions : To find out whether a person is of the right type to provide the correct information. 3). Warm- Up Questions : To direct the thinking and memory. 4). Specifies : To find out the real information sort by the study. 5). Demographic study : To describe the person who responded study.

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41

Q1. Age Group of Respondents.

Age group
60 50 40 Age 30 20 10 0 Results (percentage) Below 25 25-35 36-45 above 45

The above findings show that most of the respondents are of age of 36-45 because they have more knowledge about the investment criteria in Mutual funds & other investment instruments. And second age group is below 25.

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Q2. Average Yearly Income.

Average yearly income

35 30 Respondents 25 20 15 10 5 0 Results (percentage) Below 100000 100000-200000 200000-400000 400000 & more

The findings presented in the above graph show that more respondents have there yearly income between 2,00,000-4,00,000. As they more investment requirement so they more interest in investment.

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Q3. Occupation of respondents.

0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

ro fe ss io n es s de nt us in O th er s Jo b tu

The above graph shows that the most of the respondents approached are of business class as they have to watch more about the investment portfolio and other sector people like job & professionals have a fixed income level so they are less interested in taking risk.

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Q4. Investment Instruments.

Investment

Yes No

The data above shows that today everyone is interest in investing in different instruments provided by the different institutions. More & more people are investing in different options of investments.

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Q5. Investment Options provided to Respondents.

Investment Options
30% 25% 20% 15% 10% 5% 0%
In su ra nc M e ut ua lF un R d ea lE st B at an e k D ep os it S to ck s O th er s

Series1

The more preferred investment option by the respondents is Mutual fund as it provides more safety on investments done.

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Q6. Frequency of investments.

Frequency of Investment

1-15 Days 15-30 Days 1-3 Months 3-6 Months 6-12 Months 1- More

The frequency in which the more investment is done is between 1 month to 3months. And the less frequency is 1day to 15 days.

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Q7 Awareness about Investment Company of MF.

Different MF Investment
Others TATA MF MF HDFC MF SBI MF Franklin MF Reli MF 0 5 10 15 20 25 30

%Inves tment

The more awareness and interest for investment in Mutual Funds is about Reliance Mutual funds. As more people are aware about Reliance MF . Second important investment interest is in HDCF MF. Whereas TATA MF & SBI MF are having equal awareness .

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Q8. Interested to know more about MF.

Interest

Yes No

79 21

In todays business world people are more interested to know that how they save there income by investing it into different instruments .So about 79% of people in Rajkot are interested in knowing more about MF.

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COMMENTS.
The respondents meet for the research report were mainly of business sector so they were mostly affected by the market trends as they are the part in which affects the market in a manner so they are directly affected by the market . In such sector to respondents they manage their short term cash by using them in their working cycle or some part is left idle. While, the other sectors of the survey were of service & professionals as they are not a part of business trends they dont have any working capital to invest whatever they earn is liable for their personnel use, except their personal expenses nothing is dont by them from their money so they are least affected by the market trends .

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RECOMMENDATIONS :

Mutual fund trend is fast growing trend in the city . As it has developed a lot. There is very huge no. of people who are aware about Mutual fund 1. Spread awareness more about MF on larger & private basis. 2. There should be more private approaches towards potential customers. 3. More local advertising, through newspaper a local means of communication should be used.

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SWOT-ANALYSES
No firm can work for the shake of work. Each and every firm wants to have their own prestige in market there can be many other objectives like to earn more profit to satisfy customers need, to maintain quality . But none of above can be achieved or got without analyzing firms own performance. A firm having sound performance assessment policy will be succeeding in the up coming future. Every firm wants to compare its performance but we all know that if any firm will not consider its weakness in performance assessment, it cannot say that we are not lacking anywhere. In real, it is lacking but due to lack of vision they are saying so. There fore, SWOT analysis is one of the tools to measure company performance. It includes Strengths Weakness, Opportunities and Threats . For any particular firm this is the parameter which includes both the aspects i.e. area which has been already improved and areas which are needed to be improved . A firm has try to develop its weak areas retain its strengths look for new opportunities with considering competitors upcoming strategies that is what SWOT is all about.

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STRENGTHS VAST AREA OF SERVICES. GOOD INCREDIBILITY WELL DESIGNED CULTURE WEAKNESS DISPATCH DEPARTMENT TO BE SYSTEMIZED . OPPORTUNIES

TO INVEST IN REAL EASTATE. TO ENTER IN COMMODITY MARKET.

THREATS DOMESTIC COMPETITORS DEPENDS ON OTHER COMPANIES AND THEIR SITUATION.

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CONCLUSION :
After completion of this research report I have found out that the most part of the people in Rajkot are aware about the concept of Mutual funds and its working but they are somewhat not ready to take risk in investing in Mutual funds as the investment option preferred bye the people are government schemes and banks as they bring in sure amount of interest and there is safety in such options . The customers in Rajkot are not ready to take high risk in investment. But segment which suits the Mutual Funds concept as the right investors so the company should try to tap on such potential customers & create more surety of returns in their investment.

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BIBLOGRAPHY :
Marketing Management By Phillip Kotler www.relianceMF.com www.yahoofiance.com

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