Chapter 1

INTRODUCTION
Indian financial institutions have played a dominant role in asset
formation and intermediation, and contributed substantially in
macroeconomic development. In this process of development Mutual
Funds have emerged as strong financial intermediary and playing
important role in bringing stability to financial system and efficiency to
asset allocation.
Mutual Funds now represent perhaps the most appropriate
investment avenues for the most of the investors, as financial market
became more and more sophisticated and complex. They have opened
new vistas to investors and imparted much needed liquidity to the system.
In the process they have challenged, hitherto, dominant role of
commercial banks in financial markets and national economy.
1
WHAT IS MUTUAL FUND?
Mutual Fund is a trust that pools the savings of a number of
investors ! its shareholders called as unit holders ! who share a common
financial goal. The money thus collected is then invested 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 unit holders, and each investor
holds a pro rata share of the portfolio ! entitled to any profits when the
securities are sold, but sub"ect to any losses in value as well. In brief
mutual fund is a vehicle through which one can invest in stocks # bonds.
Managed by an Asset Management Company (AMC) :
The company that puts together a mutual fund is called an M$.
n M$ may have several mutual fund schemes with similar or varied
investment ob"ectives. The M$ hires a professional money manager,
who buys and sells securities in line with the fund%s stated ob"ective.
&ll M$'s (egulated by )*+I, Funds ,overned by +oard of
-irectors.
)*+I is the regulatory authority of MFs. )*+I has the following
broad guidelines pertaining to mutual funds/
2
MFs should be formed as a Trust under Indian Trust ct and
should be operated by sset Management $ompanies 0M$s1.
MFs need to set up a +oard of Trustees and Trustee $ompanies.
They should also have their +oard of -irectors.
The net worth of the M$s should be at least (s.2 crore.
M$s and Trustees of a MF should be two separate and distinct
legal entities.
The M$ or any of its companies cannot act as managers for any
other fund.
M$s have to get the approval of )*+I for its rticles and
Memorandum of ssociation.
ll MF schemes should be registered with )*+I.
MFs should distribute minimum of 345 of their profits among the
investors. In addition, every mutual fund has a board of directors that is
supposed to represent the shareholders% interests, rather than the M$'s
3
HISTORY OF MUTUAL FUND
In India, the first Mutual funds started in the shape of the 6nit
Trust of India in 7389, which was set up under the 6TI $T, 738: to
operate both as a financial institution # an investment trust. It was only
in the second half of eighties, public sector banks were permitted to set up
mutual funds, with )+I # $anara bank taking lead. Mutual Funds in
India 07389 ; <4441.
&6TI commenced its operations from =uly 7389 &with a view to
encouraging savings and investment and participation in the income,
profits and gains accruing to the $orporation from the acquisition,
holding, management and disposal of securities.> -ifferent provisions of
the 6TI ct laid down the structure of management, scope of business,
powers and functions of the Trust as well as accounting, disclosures and
regulatory requirements for the Trust.
In the year 733<, )ecurities # *xchange +oard of India 0)*+I1 act
was passed. The ob"ectives of )*+I are to protect the interest of
investment in securities # to promote the development of # to regulate
the securities market.
4
IMPORTANT PHASES OF THE HISTORY OFMUTUAL
FUNDS
738:;73?@/ The unit trust of India
738:;733:/ Aublic sector banks # financial institutions.
733:;7338/ Bpened to private sector players.
7338;7333/ Implementation of the new )*+I regulations.
7333;<449/ Aeriod of rapid growth.
CONCEPT OF MUTUAL FUND
Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal. The money thus collected
is then invested in capital market instruments such as shares, debentures
and other securities. The income earned through these investments and
the capital appreciations realiCed are shared by its unit holders in
proportion to the number of units owned by them. Thus a Mutual Fund is
the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost. The flow chart below describes broadly
the working of a mutual fund/
5
Mutual Fund Operation Flow Chart
6
STRUCTURE OF INDIAN MUTUAL FUNDS
7
Sponsor
Company
Custodian
Asset
Management
Company
Mutual
funds
Banker
Register
Transfer Agent
Establishes Mutual Fund as
a Trust
Register MF with SEBI
Hold Unit holders` Fund in
MF
Ensure Compliances with
SEBI & enters into
agreement with )*+I
Manages Fund as per
SEBI ,uidelines # M$
Provide Necessary
$ustodian )ervices
Provide Banking Services
Provide register Services
& Act as Transfer Agent
Managed by Board
of Trustees
A
p
p
o
i
n
t
e
d

b
y

B
o
a
r
d

o
f

T
r
u
s
t
e
e
s
bove figure gives exact idea about structure of Indian Mutual Funds.
Mutual Fund comprises four separate entities, namely
)ponsor $ompany,
Mutual Fund Trust,
sset Management $ompany 0M$1 and
$ustodian.
There are of course independent entities that assist in business like
+anks, (egistrar and Transfer gents. Dow let's discuss in brief about
these main four entities, their functions and their obligations.
The )ponsor for Mutual Fund can be any person, who acting alone
or in combination with another body establishes mutual fund and gets it
registered with )*+I. )ome important point about sponsor/
Ee is required to contribute at least 945 or 74 crore of asset
management company.
Ee must have sound track record and general reputation of fairness
and integrity in all his business.
s per )*+I regulations, the mutual fund is to be formed by the
sponsor and register with )*+I.
8
The +oard of Trustees manages the mutual funds and the sponsor
executes trust deeds in favor of trustees. The mutual fund raises money
through sale of unit under one or more schemes for investing in securities
accordance with )*+I guidelines. It is the "ob of the trustees to see that
the schemes floated and managed by M$, are accordance with trust
deeds and )*+I guidelines. )ome important points about Trustees/
t least half of the trustees should be independent person.
The M$ or its employees cannot act as trustee.
Do person who is appointed as trustee of one mutual fund can
appoint trustee of other mutual fund unless he is independent
trustee and prior permission is obtain from mutual fund in which he
is a trustee.
The trustee appoint custodian and supervise their activity.
ll schemes launched by M$ needs to be approved by the
trustees and copies of offer document are to be filed with )*+I.
s per )*+I guidelines sset Management $ompany 0M$1 is
appointed by the trustees to float the schemes for mutual fund and
manage the fund raised by selling units under a scheme. The M$ must
9
act as per )*+I guidelines, the trust deed and the management agreement
between trustee and M$. )ome important points about the M$/
The M$ should be register with )*+I
Det worth of M$ should be in form of cash and the entire asset
should be held in the name of M$.
M$ cannot give or guarantee loans.
M$ is prohibited from acquiring any asset 0out of schemes
property1 that would involve assumption of unlimited liability.
It is required to disclose the schemes particulars and the base of
DF calculations.
The )*+I regulations provide for the appointment of the $ustodian
by the trustees of the mutual fund for carrying on activity of safe keeping
of the securities or participating in any clearing system on behalf of
mutual fund. )ome important point about the $ustodian/
$ustodian must have sound track record and adequate relevant
experience.
t time of appointment, the $ustodian should not be associated
with the M$ or act as sponsor or trustee to any mutual fund.
10
TYPES OF MUTUAL FUND
Flow chart of types of Mutual Fund
11
CLASSIFICATION ACCORDING TO INVESTMENT
OB1ECTIVE:
Objectives:
Mutual funds have specific investment ob"ectives such as growth
of capital, safety of principal, current income or tax;exempt income. In
general mutual funds fall into three general categories/
*quity Funds invest in shares or equity of companies.
Fixed;Income funds invest in government or corporate securities
that offer fixed rates of return.
+alanced Funds invest in a combination of both stocks and bonds.
Schemes according to maturity period
Mutual fund scheme can be classified into open;ended scheme
or close ended scheme depending on its maturity period.
Open-ended fund/ scheme
n open ended fund or scheme is one that is available for
subscription and repurchase on a continuous basis. These schemes do not
12
have a fixed maturity period. Investors can conveniently buy and sell
units at Det sset Falue 0DF1 related prices which are declared on a
daily basis. The key feature of open;ended schemes is liquidity.
Close-ended fund/ Scheme
close;ended fund or scheme has a stipulated maturity period
e.g. 2;@ Gears. The fund is open for subscription only during a specific
period at the time of launch of the scheme. Investors can invest in the
scheme at the time of the initial public issue and thereafter they can buy
or sell the units of the scheme on the stock exchanges where the units are
listed. In order to provide an exit route to the investors, some close ended
funds give an option of selling back to units to the mutual fund through
periodic repurchase at DF related prices )*+I regulations stipulated
that at least one of the two exit route is provided to the investor i.e. either
repurchase facility or through listing on stock exchanges. These mutual
funds scheme dis close DF generally on weekly basis.
13
Scheme according to Investment Objective
)cheme can also be classified as growth scheme, income
scheme, or balanced scheme considering its investment ob"ective. )uch
scheme may be open;ended or close ended scheme as describe earlier.
)uch scheme may be classified mainly as fallows/;
Growth/ Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over
the medium to long term. )uch schemes normally invest a ma"or part of
their corpus in equities such funds have comparatively high risks. These
schemes provide a different options to the investors like dividend options,
capital appreciation, etc # the investors may choose an option depending
on their preferences. The investors must indicate the option in the
application form. The mutual funds also allow the investors to change the
options at the later date. ,rowth schemes are good for investors having a
long term outlook seeking appreciation over a period of time.
14
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income
to investors. )uch schemes generally invest in fixed income securities
such as bonds, corporate debentures, ,overnment securities and money
market instruments. )uch funds are less risky compared to equity
schemes these funds are not affected because of fluctuations in equity
markets. Eowever opportunities of capital appreciation are also limited in
such funds. The DF of such funds likely to increase in the short run and
voice versa. Eowever, long term investor may not bother about these
fluctuations.
Balanced fund
The aim of balanced funds is to provide both growth and regular
income as such scheme invest both in equities and fixed income securities
in the proportion indicated in there offer documents. These are
appropriate for investor looking for moderate growth. They generally
invest 94;845 in equity and debt instruments. These funds are also
affected because of fluctuations in the share prices in the stock markets.
Eowever, DF of such funds are likely to be less volatile compared to
pure equity funds.
15
Money Market or Liquid Fund
These funds are also income funds and their aim is to provide
easy liquidity, preservation of capital and moderate income. These
schemes invest exclusively in safer short term instrument such as treasury
bills, certificate of deposit, commercial paper and inter;bank call money,
government securities, etc. returns on this scheme fluctuate much less
compared to other funds. These funds are appropriate for compared to
other funds. These funds are appropriate for corporate and individual
investors as a means to park their surplus funds for short periods.
Gilt Fund
These funds invest exclusively in government securities.
,overnment securities have no default risk. DFs of this scheme also
fluctuate due to change in interest rates and other economic factors as is
the case income or debt oriented schemes.
16
Index Fund
Index fund replicate the portfolio of a particular index such as the
+)$ sensitive index, )#A D)* 24 index 0Difty1 etc. These schemes
invest in the securities in the same weightage comprising of an index.
DFs such schemes would rise or false accordance with the rise or fall in
the index, through not exactly by the same percentage due to some factors
known as &tracking error. in technical terms. Decessary disclosures in
this regard are made in the offer document of the mutual fund scheme.
There are also exchange traded index funds launched by the mutual funds
which are traded on the stock exchange.
17
A summary is presented in the table below of the various funds
and their investment objectives.

SCHEME
TYPE
TIME
HORIZON
RISK
PROFILE
TYPICAL
INVESTME
NT
PATTERN
Bb"ective Bpen
ended
$lose
ended
*quit
y 051
-ebt
051
Money
Market
Inst.HBth
ers 051
Money
Market
Ges Do )hort;Term Iow 4 4;<4 ?4;744
Income Ges Ges Medium
;Iong Term
Iow to
Medium
4 ?4;
744
4;<4
,rowth Ges Ges Iong Term Eigh ?4;
744
4;<4 4;<4
+alanced Ges Ges Iong term Medium to
high
4;84 4;94 4;<4
Tax
)aving
Ges Ges Iong term Eigh ?4;
744
?4;
744
4;<4
18
BENEFITS OF MUTUAL FUND
Following are some benefits in investing in Mutual Funds/
Professional management:
Mutual funds hire full;time, high;level investment professionals.
Funds can afford to do so as they manage large pools of money. The
managers have real;time access to crucial market information and are
able to execute trades on the largest and most cost;effective scale.
Diversification:
Mutual funds invest in a broad range of securities. This limits
investment risk by reducing the effect of a possible decline in the value of
any one security. Mutual fund unit;holders can benefit from
diversification techniques usually available only to investors wealthy
enough to buy significant positions in a wide variety of securities.
Low Cost:
mutual fund let%s you participate in a diversified portfolio for as
little as (s.2,444H;, and sometimes less. nd with a no;load fund, you pay
little or no sales charges to own them.
Liquidity:
19
In open;ended schemes, you can get your money back promptly at
net asset value 0DF1 related prices from the mutual fund itself. Jith
close;ended schemes you can sell your unit at stock exchange at
prevailing market price or avail of the facility of direct purchase at DF
related prices which close;ended schemes offers periodically.
Transparency:
Gou get regular information on the value of your investment in
addition to disclosure on the specific investments made by the mutual
fund scheme.
Choice of Schemes:
Mutual Funds offer a family of schemes to suit your varying needs
over lifetime.
Well regulated:
ll mutual funds are register with )*+I and they functions within
the provisions of strict regulation design to protect interest of investor.
The operations of Mutual funds are regularly monitored by )*+I.
20
Return Potential:
Bver medium to long;term, Mutual Funds have the potential to
provide higher returns as they invest in a diversified basket of securities.
Transparency
Flexibility
$hoice of schemes
Tax benefits
Jell regulated
21
Chapter 2
OB1ECTIVES OF STUDY
71 The main aim of pro"ect was to study # compare different
schemes of (eliance Mutual Fund.
<1 To compare various scheme of (eliance mutual funds on the
basis of their ob"ectives, DF, nnual returns, risk and
portfolio etc.
:1 To know various features and benefits of the schemes of mutual
funds.
91 To study the returns of mutual fund from investors point of
view.
21 To suggest the best fund for investment.
22
Chapter 3
IMPORTANCE AND SCOPE OF THE STUDY
71 The scope of the pro"ect is to conduct comparative study of
mutual fund I have selected specific schemes of mutual fund. i.e ,rowth
scheme.
(eliance diversified power sector fund.
(eliance Index fund Difty plan.
(eliance +anking fund.
(eliance media and entertainment fund.
(eliance D(I equity fund.
<1 The comparison is done on following basis,
Bb"ective of schemes
Aortfolio of schemes.
DF of schemes.
bsolute (eturns of schemes.
23
Chapter 4
HYPOTHESIS
71 It is found that (eliance Mutual Fund 0(MF1 is the biggest Mutual
Fund house in India.
<1 It has got considerable popularity in whole India.
:1 (eliance diversified power sector fund has constant and strong
hold on the market in terms of overall performance
91 Mutual fund industry is at the stage of expansion in its business
and after the opening of gates of Indian economy it is getting more
popular among the investors
24
Chapter 5
RESEARCH METHODOLOGY
&(esearch Methodology is a human activity based on intellectual
investigation and is aimed at discovering, interpreting, and revising
human knowledge on different aspects of the world..
RESEARCH DESIGN:-
research design indicates a primary interpretation of design
research is that it is concerned with undertaking research into the design
process. )econdary interpretations would refer to undertaking research
within the process of design. . It provides guidelines for the researcher to
know whether he is on the right track and is he moving in the right
direction. The research design specifies the methods # procedures for
collecting and analyCing the needed information. It is a frame work for
research plan of action.

25
DATA COLLECTION:
The whole data collected from secondary sources only. The
method which I used was secondary data. 6nder this method I have
collected external secondary data from the "ournals published from
companies.
Secondary Data
The secondary data collected through following basis/;
$ompany (ecords.
Fact sheets.
=ournals.
MagaCines.
SAMPLE
Sample size:
(eliance diversified power sector fund.
(eliance Index fund Difty plan.
(eliance +anking fund.
(eliance media and entertainment fund.
26
(eliance D(I equity fund.
The )ample used for the research is randomly selected.
LIMITATION OF PRO1ECT :
Iimitation of the pro"ect title, &to study of various schemes of
(eliance mutual.. The study has been restricted with reference to the
following basis of the various schemes only.
Bb"ective of schemes.
Aortfolios of schemes.
DF of schemes.
nnual returns of schemes.
27
Chapter 6
COMPANY PROFILE
INTRODUCTION OF RELIANCE MUTUAL FUND
(eliance Mutual Fund 0(MF1, a part of the (eliance nil
-hirubhai mbani ,roup, is India's leading Mutual Fund, with ssets
under management of (s @@,@82 $rores 06M as on :4th Dovember
<44@1, and an investor base of over 9.< million . (eliance Mutual Fund
is one of the fastest growing mutual funds in the country.
28
VISION STATEMENT
To be a globally respected wealth creator with an emphasis on
customer care and a culture of good corporate governance.
MISSION STATEMENT
To create and nurture a world;class, high performance environment
aimed at delighting our customers.
The main objectives of the Trust are :
To carry on the activity of a Mutual Fund as may be permitted at law
and formulate and devise various collective )chemes of savings and
investments for people in India and abroad and also ensure liquidity of
investments for the 6nit holders.
To deploy Funds thus raised so as to help the 6nit holders earn
reasonable returns on their savings.
To take such steps as may be necessary from time to time to realise
the effects without any limitation.
29
30
ABOUT RELIANCE MUTUAL FUND
(eliance Mutual Fund offers investors a well rounded portfolio of
products to meet varying investor requirements. (eliance Mutual Fund
has a presence in :44 cities across the country and constantly endeavors
to launch innovative products and customer service to increase value of
investors. (eliance Mutual Fund schemes are managed by (eliance
$apital sset Management Itd, a wholly owned subsidiary of (eliance
$apital Itd.
(eliance $apital limited is a financial services a company. The
$ompany has interests in asset management and mutual funds, life and
general insurance, private equity and investments, stock broking and
other activities in financial services.
In pril <44@, the company launched (eliance Money, an online
financial services and solutions portal, which provides its customer with
investment and trading access to equities and equities options and
commodities futures, mutual funds, initial public offerings 0IABs1, life
and general insurance products and credit cards. It operates in four
+usiness segments/ finance and investment, asset management, general
insurance and other. Bther includes foreign exchange, money transfer,
pharmaceuticals, healthcare and logistics.
31
(eliance Mutual Fund 0(MF1 is the biggest Mutual Fund house in
India. It has been sponsored by (eliance $apital Itd 0($I1. ($I has
been promoted by (eliance Industries Itd., one of India%s largest private
sector enterprises. (eliance $apital sset Management Itd manages the
investments of (eliance Mutual Fund.
(eliance mutual funds have now gone ahead of 6nit Trust of India
06TI1 to become India%s largest mutual fund by 6M 0assets under
management1. ccording to FMI 0ssociation of Mutual Funds of
India1 (eliance%s 6M was (s :3444 crore in =anuary compared to (s
:@244 crore of 6TI.
Arudential I$I$I MF is now in the third position with 6M of
:9@24 crore and E-F$ MF is at fourth position with 6M of :7244
crore. Total 6M of all mutual funds in India 0except Taurus and
*scorts1 is now at (s :<:244 crore.
(eliance Mutual Fund reported a healthy growth of (s 78,:29
crore in assets under management 06M1 in February, taking the total
industry;wise 6M to (s 2,82,923 crore. sset under management of
(eliance $apital Itd is 3:,2:< crores as on <3th Feb <44?.
32
RELIANCE CAPITAL LIMITED :
>(eliance Mutual Fund schemes are managed by (eliance $apital
sset Management Iimited., a subsidiary of (eliance $apital Iimited,
which holds 3:.:@5 of the paid;up capital of ($M, the balance paid up
capital being held by minority shareholders.>, the sponsor. (eliance
Mutual Fund 0(MF1 has been sponsored by (eliance $apital Itd 0($I1.
The promoter of ($I is *nterprises Arivate Iimited. (eliance
$apital Iimited is a Don +anking Finance $ompany.
(eliance $apital Iimited is one of the India's leading and fastest
growing financial services companies, and ranks among the top three
private sector financial services and banking companies, in terms of
networth.
(eliance $apital has interests in asset management and mutual
funds, life and non;life insurance, private equity and proprietary
investments, stock broking and other activities in the financial services
sector.
33
SCHEMES OF RELIANCE MUTUAL FUND
Growth Scheme
(eliance Datural (esources Fund
(eliance *quity Fund
(eliance Fision Fund
(eliance ,rowth Fund
(eliance D(I *quity Fund
Sector Specific Schemes
(eliance +anking Fund
(eliance -iversified Aower )ector Fund
(eliance Media # *ntertainment Fund
Debt\Income Schemes
(eliance Income Fund
(eliance Monthly Income Alan
(eliance Iiquidity Fund
34
Chapter 7
DATA ANALYSIS AND INTERPRETATION
TEXT OF STATISTICAL REPRESENTATION
The main aim of the pro"ect is to conduct comparative study of mutual
fund I have selected specific schemes of mutual fund. i.e ,rowth scheme.
(eliance diversified power sector fund.
(eliance Index fund Difty plan.
(eliance +anking fund.
(eliance media and entertainment fund.
(eliance D(I equity fund.
35
Scheme of Study
F6D-
DM*
Reliance
diversified
power
sector
fund
(Growth)
Reliance
Index
Fund
Nifty
plan
(Growth)
Reliance
Banking
fund
(Growth)
Reliance
media &
entertainment
fund
(Growth)
Reliance
NRI
Equity
Fund
(Growth)
Fund Type Bpen
*nded
Bpen
*nded
Bpen
*nded
Bpen *nded Bpen
*nded
Investment ,rowth ,rowth ,rowth ,rowth ,rowth
Inception
-ate
74 May,
<449
? Feb,
<442
<? May,
<44:
@ Bct,
<449
78 Dov,
<449
Minimum
Investment
2444 2444 2444 2444 2444
+enchmark India
Aower
Index
)#A
$DK
Difty
Index
)#A
$DK
+ank
fund
)#A $DK
media #
entertainment
Index
+)* <44
Index
Fund
Manager
)unil
)inghania
shwani
Lumar
)unil
)inghania
)ailesh (a"
+han
Bmprakash
Luckien
36
Comparative study of mutual fund schemes.
The parameters are selected on the following grounds:-
Bb"ective of schemes.
Aortfolio of schemes.
DF of schemes.
bsolute (eturns of schemes.
37
1) Comparison of objectives of schemes.
Objectives
Of
Schemes
Scheme 1 Scheme 2 Scheme 3 Scheme 4 Scheme 5
To seek to
continuous
(eturns by
investing in
equity #
equity
related or
fixed;
income
securities of
power #
other
associated
companies.
The ob"ective
of Difty Alan is
to replicate the
composition of
the Difty, with
a view to
endeavor to
generate
returns, which
could
approximately
be the same as
that of Difty.
The
primary
investment
ob"ective
of the
)cheme is
to seek to
generate
continuous
returns by
actively
investing in
equity H
equity
related or
fixed
income
securities
of banks.
To generate
continuous
(eturns by
investing in
equity #
equity related
or fixed;
income
securities of
media #
entertainment
# other
associated
companies.
To generate
optimal
(eturns by
investing in
equity #
equity
related
instruments
primarily
drawn from
the
companies
in the +)*
<44 Index.
38
2) Comparison of schemes by Portfolios
Duration Portfolios Scheme
1
Scheme
2
Scheme
3
Scheme
4
Scheme
5
:7
-ec,<474
*quity 8?.79 ?7.@7 3@.29 ?9.?7 3@.:3
$ash #
other
(eceivables
:7.?8 7<.<3 <.98 72.73 <.87
:7
=an,<477
*quity @9.?: 39.3< 3@.9< @8.98 3@.84
$ash #
other
(eceivables
<2.7@ 2.4? <.2? <:.29 <.94
<3
Feb,<477
*quity @4.3? ?<.9? 3:.?: 3<.93 32.43
$ash #
other
(eceivables
<3.4< 7@.2< 8.7@ @.27 9.37
3) Comparison of NAV of schemes
Duration Scheme
1
Scheme
2
Scheme
3
Scheme
4
Scheme
5
39
NAV
:7
Mar,<443
79.:
4
3.?7 <2.:
9
74.:
9
77.::
:7
Mar,<474
:4.4
@
79.:
8
:7.2
9
7?.3
@
7?.@?
:7
Mar,<477
?7.?
:
73.4
7
<<.@
:
97.<
7
:?.92
Comparison of NAV of last 1 year on 2012
Sr. Schemes NAV Remarks
40
No
7 (eliance diversified power
sector fund
0,rowth1
?7.?: I
< (eliance Index
Fund
Difty plan
0,rowth1
73.47 F
: (eliance +anking
fund
0,rowth1
<<.@:
IF
9 (eliance media # entertainment
fund 0,rowth1 97.<7
II
2 (eliance D(I *quity
Fund 0,rowth1 :?.92
III

From the above table we find that there is difference in DF of
each Mutual fund. DF of (eliance diversified power sector fund is
(s.?7.?: but other scheme of DF is low. This difference plays
41
important role while investors choose a scheme. From above table it is
clear that (eliance diversified power sector fund 0growth1 has better
chances of getting selected.
42
4) Comparison of Absolute Returns ( IN 1of Reliance
mutual fund
Returns
Duration Scheme
1
Scheme
2
Scheme
3
Scheme
4
Scheme
5
:7 Mar,<443 ?7.9 <?.< <3.< 9<.2 29.?
:7 Mar,<474 2?.? <9.? 7?.: 9:.: 93.8
:7 Mar,<477 7<<.8 97.? @2.2 @3.@ 2:.2
The above graph shows the comparison of bsolute returns.
Comparison of Absolute Return ( IN 1 of last 1 year on
2007
43
Sr. No. Scheme Absolute
Returns
Remark
s
7 (eliance diversified power
sector fund 0,rowth1
7<<.8 I
< (eliance Index Fund Difty
plan 0,rowth1
97.? F
: (eliance +anking fund
0,rowth1
@2.2 III
9 (eliance media #
entertainment fund 0,rowth1
@3.@ II
2 (eliance D(I *quity
Fund 0,rowth1
2:.2 IF
bove mentioned table shows the average bsolute returns of each
Mutual fund scheme. This factor is most important role while selecting
the mutual fund schemes for investor point of view.
Table shows that (eliance diversified power sector fund 0growth1
has highest average absolute returns i.e 7<<.85 and then (eliance media
# entertainment fund 0,rowth1 and (eliance +anking fund0,rowth1.
The annual (eturns of (eliance diversified power sector fund
0growth1 comes to be ?9.<@ and after that I$I$I pru infrastructure fund
comes to be 29.37.
44
45
5) Comparison of Schemes by Expense ratio.
Expense
Ratio
Reliance
power
Reliance
Index
Reliance
Banking
Reliance
media
Reliance
NRI
equity
7.895 7.@<5 <.745 <.7:5 <.945
graph shows the comparison of expense ratio between five
schemes.
46
bove mentioned graph shows the expense ratio of each scheme of
mutual fund. This factor plays very important role while selecting the
mutual scheme for investor point of view. +ecause if the expense ratio
should less then profit will increases and due to this returns to unit
holders also increases. s we seen that (eliance diversified power sector
fund has 7.895 expense ratio than other funds.
47
6) Comparison of Schemes by Beta.
Beta Reliance
power
Reliance
Index
Reliance
Banking
Reliance
media
Reliance
NRI
equity
4.37:9 4.?7< 4.37:9 4.37:9 4.3<::
From the above mentioned graph, we can find the average risk of
particular schemes of mutual fund. This factor shows the financial risk of
48
the fund and Alus an important role in getting investors faith. This table
shows reliance Index fund Difty plan has less risk than reliance
diversified power sector fund, reliance +anking fund and reliance media
# entertainment fund.
49
Chapter 8
CONCLUSION
The pro"ect has resulted in providing some important facts. It has
been found that (eliance diversified power sector fund has turned out to
the most popular mutual fund among the investors. This mutual fund got
the perfect ob"ective of investment, Det asset value, highest bsolute
returns and annual returns also. These factors are enough to gain the faith
of the investors and for the better prospectus in the market. This fund has
invested in equity # equity related or fixed;income securities of power #
other associated companies. They are ideal for medium to long term
investors who are willing to take moderate risk.
s it is found when the expense ratio should less then profit will
increases and due to this returns to unit holders also increases. s we seen
that (eliance diversified power sector fund has 7.895 expense ratios than
other funds.
It is found that (eliance Mutual Fund 0(MF1 is the biggest Mutual
Fund house in India. It has got considerable popularity in whole India.
For best results, $omparison can be done on the basis of the overall
performance made by the mutual fund in the next table, which is as
under/;
50
OVERALL PERFORMANCE RANKWISE
MUTUAL FUND NAV ABSOLUTE
RETURNS
(eliance diversified power
sector fund I I
(eliance Index fund Difty
plan F F
(eliance +anking fund
IF III
(eliance media #
entertainment fund II II
(eliance D(I equity
fund III IF
From the above table it is clear that (eliance diversified power
sector fund has constant and strong hold on the market in terms of overall
performance. The (eliance provides &ll in Bne. facilities which
understand the specific needs of investors who seek information #
guidance in making investments in wide range of financial products.
Mutual fund industry is at the stage of expansion in its business
and after the opening of gates of Indian economy it is getting more
51
popular among the investors. In last 74 years India become the largest
market for the mutual fund investment has getting highest priority than
any other financial investments in India.
52
BIBLIOGRAPHY
BOOKS
Financial management.
+G ; (FI LI)EB(*.
+G ; (.A.(6)TB,I.
+G ; LED # =ID.
INTERNET WEBSITES
7. www.reliancemutual.com
<. www.valueresearch.com
:. www.moneycontrol.com
INVESTORS MANUAL
53