1

1.1 INTRODUCTION OF THE MUTUAL

FUND
Mutual fund units are investment vehicles that
provide a means of participation in the stock market for
people who have neither the time nor money not perhaps
the expertise to undertake direct investment in equities
successfully on another level, they also provide a route
into specialist market where direct investment often
demand both more time and more knowledge than an
investor or his financial advisor may process.

The basic idea of mutual fund is simple. A large
number of investors pool their money in order to obtain a
spread of professionally managed stock exchange
investment that they cannot obtain individually. The
advantage is that the investor in a mutual fund is taking
much more/less of a risk than a direct equity investor,
because increase in the number of stocks held obviously
reduces the effect that anyone stock can have to maintain
benefits. It provides specialist investment expertise, which
should ensure greater success than the inexperienced
investor, can achieve on his own and it reduces the
administrative burden of investment.

A Mutual Fund is divided into equal portfolios called
units. The price of units is calculated regularly by the
managers, rather than being determined by supply and

2


demand in the market. The price are quoted for units
higher price being the price the investor pays to buy
units, and the lower price he will receive for units sold
back to the managers.

A mutual fund is a trust that pools the saving of
a numbers of investors who shares and common financial
goals. The money thus collected is then invested in capital
market instruments such as shares debenture and other
securities the income earned through these investment
and the capital appreciation realized is shared by its unit
holders in proportion to the no. of units own by them.
Thus, 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.












3


1.2 MUTUAL FUND INVESTMENT CYCLE













From the above cycle it can be observe that how
can the money from the investors flow and they get
returns out of it. With a small amount of fund, investors
pool their money with the fund manager. Taking into
consideration the marketer strategy the fund manger
invest this pool money into reliable securities. With up
and down in market returns are generated and they are
passed on to the investors. The above cycle should be very
clear also and effective. The fund manger while investing
on behalf of investors takes into consideration various
Factors like time risk; return etc so that he can make
proper investment decision.
Pool their
money with
Pool their
money with
INVESTORS
FUND
MANAGE
R
Pool their
money with
Invest in
SECURITIES
RETURNS
Generates
Passed
back to

4


1.3 HISTORY OF MUTUAL FUND IN INDIA

The mutual fund industry in india started in 1963
with the formation of Unit Trust of India, at the initive of
the government of India and reserve Bank of India. The
history can be brodly divided into four phases.

PHASE-1 1963-1987 UNIT TRUST OF INDIA

An act of parliament established Unit Trust of
india on 1963 it was set up by the reserve bank of
India,and functional under the regulatory and
administrative control of the RBI. The first scheme was
launched by UIT unit scheme 1964.These scheme was
also at least partially the the first open end scheme in the
country. Now moving toward becoming fully open end.
Later on, 1970 and 1980,UTI started innovating
offering different classes of different scheme to suit the
needs of different classes of different investors. Unit
Linked Insurance Plans (ULIP) was launched in 1971. Six
new scheme were introduced between 1981 &
1984.During 1984-87, new scheme like Childrens gift
growth fund and Master Share were launched and also
Monthly Income Plan scheme.




5


PHASE-2 1987-1993 ENTRY OF PUBLIC SECTOR
FUNDS.
In 1987 public sector bank and financial
institution entered in mutual fund industry. Public sector
mutual fund set up by public sector banks and Life
Insurance Corporation of India (LIC) and General
Insurance Corporation of India. SBI mutual fund was the
first non-UIT mutual fund established in june 1987. Most
of the funda were growth oriented, closed ended funds. By
the end of this period, assets under UTIs management
grew to Rs.38247 crores and Public sector funds managed
Rs. 8750 crores.

PHASE-3 1993-1996 ENTRY OF PRIVATE SECTOR
FUNDS.
A new era of mutual fund industry started with
the entry of private sector fund in 1993, giving the Indians
investors, a wider choice of fund families and increasing
competition for the existing public sector fund. Also, 1993
was the year in the first Mutual Fund regulation came
into being under which all mutual funds, except UTI were
to be registered and governed. During the year 1993-94
five Private Sector Mutual Fund launched their scheme
followed by other six.




6


PHASE-4 1996-2003 SEBI REGULATION FOR MUTUAL
FUNDS.
The implementation of the new SEBI regulation and
the restructuring of the mutual fund industry late to rapid
growth bank mutual fund were recast according to the
SEBI recommended structure, and UTI became voluntary
SEBI, supervision. 1999 makes the beginning of a new
phase in the history of the mutual fund industry in India,
a phase of significant growth in terms of both amount
mobilized from investors and assets under management.

PHASE -5 2003 ONWARDS

This phase was marked by very rapid growth in the
industry, and significant increase in market shares of
private sector players.
In February 2003, following the repeal of the unit
Trust of India Act 1963 was bifurcated into two separate
entities.
One is the specified undertakings of the Unit Trust
of India with assets under management of Rs.29,835
corers as at the end of January 2003, representation
broadly, the assets of unit scheme 1964, assured return
and certain other schemes. The specified undertakings of
UTI, functioning under an administrator and under the
rules framed by the Government of India, and do not
come under the purview of the Mutual Fund Regulation.

7

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 Regulation, with the bifurcation of the UTI which
had in march 2000 more than Rs. 76000 corers of assets
under management and with the setting up of a UIT
Mutual Fund, Conforming to the SEBI Mutual Fund
Regulation, and with recent mergers taking place among
different private sector funds, the Mutual Fund Industry
has entered its current phase of consolation and growth.
As, at the end of sep. 2004, there were 29 funds, which
manage assets of Rs. 153108 corers under 421 schemes



8


1.4 ORGANISATION STRUCTURE OF
MUTUAL FUND
























SEBI
Trustee Sponsor
Operations
AMC
Fund
Manager
Mutual
Fund
Schemes
Investors
MKT/Sales
Distributor
s
MKT/Sales

9


The Mutual fund is set up in the form of a trust,
which has sponsor, trustee, Asset Management Company
(AMC) and custodian. The trust is established by a
sponsor or more than one sponsor who is like promoter of
the company. The trustee of the mutual fund holds its
property for the benefit of the unit holders.AMC approved
by SEBI managed the fund by making investment in
various types of securities. A custodian, who is registered
with SEBI, holds the securities of various schemes of the
fund in its custody. The trustees are vested with the
general power of superintendence and direction over AMC.
They monitor the performance and compliance of SEBI
regulations by the mutual fund.
The structure of the mutual fund in India is
governed by the SEBI Regulation 1996. These regulation
make is mandatory for mutual fund to have a 3 tire
structure of

SPONSORS-----TRUSTEES-----AMC

SEBI
Like other countries, India has a legal
framework within which MF must be constituted. Unlike
in the UK, where two distinct Trust and corporation
structures are followed with separate regulations. In
India, open & closed funds operate under the same



10

regulatory structure, and are
constituted along one unique structure as Unit Trust. A
mutual fund in India is allowed to issue open and close
ended schemes under a common legal structure.
Therefore, mutual fund may have several different
schemes under it. The structure which is required to be
followed by MF in India is laid down under SEBI
regulation 1996

SPONSORS:-
Sponsors are the promoter of mutual fund and
appoint the Trustee. The sponsors, either directly acting
through the Trustees, will also appoints a custodian to
hold the funds assets. All these appointment are made
accordance with SEBI regulation. The sponsors will also
generally appoint an Assets Managements company as
Fund Managers.

TRUSTEES:-
Trustees are responsible to the investors in the
mutual fund and hold the mutual fund property for the
benefit of unit holders. They are an independent authority
set up under the aegis of SEBI. They are appointed by the
AMC for managing the investment portfolio.





11


ASSET MANAGEMENT COMPANY:-
AMC approved by it mange the funds by making
investment in various type of instrument and securities.
The role of AMC is to act as the Investment Manager of
the trust. The trustees are empowered to terminate the
appointment of the AMC by majority and new AMC with
the prior approval of SEBI and unit holders. The AMC of a
mutual fund must have a net worth of at least 10 corers
at all times.

CUSTODIAN:-
Custodian registered with SEBI, It holds the
securities of various scheme of the fund in its custody. Its
responsibilities include receipt and delivery of securities,
collecting income distributing dividends, safe keeping of
the units and safeguarding assets and settlement between
schemes. Their charge range between 0.15-0.2 per. of the
net value of the holding custodian cans more than one
fund.

DISTRIBUTORS:-
Distributor sells units on behalf of funds and is
generally appointed by the AMC.





12

BANKERS:-
Bankers are dealing with money for buy and sale of
units, paying and receiving funds for investment,
discharging obligations for operational expenses.

TRANSFER AGENT:-
Transfer agents are used for issuing and redeeming units,
preparation of transfer of documents, updating investor
records, in house or external agency.
















13


1.5 TYPES OF MUTUAL FUND SCHEME

























BY STRUCTURE
Open ended Schemes
Close ended Schemes
Interval Schemes
BY INVESTMENT OBJECTIVE
Growth Schemes
Income schemes
Balanced Schemes
Money market scheme
OTHER SCHEMES
Tax saving schemes
Special Schemes
Index income
Sector Schemes

14


Schemes according to Maturity period.

1. Open ended fund Schemes
An open ended fund or scheme is one of that is
available for subscription and repurchase on a
continuous basis. These schemes do not have a fixed
maturity period. The key feature of open end scheme is
liquidity. Investors can conveniently buy & sell unit at net
assets value related prices, which are declared on a daily
basis. Most mutual fund scheme are open ended.

2. Close ended fund schemes

A close ended fund or scheme has stipulated
Maturity periods e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of
launch. Generally, investors can invest in the scheme at
the time of New Fund Offer (NFO) and thereafter they can
buy or sell the unit of the schemes on the stock exchange
where the unit may be listed. Occasionally, the mutual
fund provides a repurchase option to investors for a
specified offer.







15


Schemes according to investment
Objectives:-
A scheme can also be classified as growth scheme,
income scheme or balanced scheme considering its
investment objective such scheme may be open ended or
close ended scheme as described earlier. Such scheme
may be classified mainly as follow:

1. Growth/Equity oriented scheme
The aim of growth fund is to provide capital
appreciation over the medium to long term. Such scheme
normally invests a major part of their corpus in equities.
Such funds have comparatively high risks. These schemes
provide different option to the investors like dividends
option, capital appreciation etc... And the investors may
choose an option depending on their preference. The
investors must indicate the option in the application form.
Growth schemes are good for investors having a long term
outlooks seeking appreciation over a periods of time.

2. Income/Debt oriented scheme
The aim of income funds is to provide regular and
steady income to investor. Such schemes generally invest
in fixed income securities such as bonds, corporate
debentures, govt. securities and money market
instrument. Such funds are risky compared to equity


16


schemes. These funds are not affected because of
fluctuation in equity market. The NAVS of such funds are
affected because of change in interest rate in the country.
If interest rates fall, NAVs of such funds are likely to
increase in the short run and vice-versa.

3. Balanced Fund
The aim of balanced funds as to provide both growth
and regular income as such schemes invest both in
equities and fixed income securities in the proportion
indicate in their offer document. These are appropriate for
investors looking for moderate growth. They generally
invest 40-60% in equity and debt instrument. These funds
are also affected because of fluctuation in share policies in
the stock markets.

4. Money Market / Liquid Fund
These funds are also income funds and their aim is to
provide easy liquidity and moderate income. These
schemes invest exclusively in safer short term instrument,
such as treasury bills, certificate of deposits, commercial
paper and interbank call money, government securities
etc. Returns on these schemes fluctuate much less
compared to other funds. These funds are appropriate for
corporate and individual investors as a means to park
their surplus funds for short periods.


17


Other schemes

1. Gilt funds
These funds invest in exclusively in government
securities. Government securities have no default risk.
NAV of these schemes also fluctuate due to change in
interest rates and other factors as is the cash with income
or debt oriented schemes.

2. Index funds
Index funds replicate the portfolio of a particular
index such as the BSE sensitive Index, S&P NSE 50 index
(Nifty) etc...These schemes invest in the securities in the
same weight age compromising of an index. NAV of such
Schemes would rise or fall in the index. Though not
exactly by the same percentage due to some factors
known as tracking error in technical terms. Necessary
discourses in this regard are made in the offer document
of the mutual fund schemes.

3. Sector specific Funds
These are the funds, which invest in the securities of
only those sectors or industries as specified in the offer
document. E.g. Pharmaceuticals, Software, Fast Moving
Consumer Goods (FMCG), Petroleum Stocks etcThe
returns in these funds are depending on the performance
of the respective sectors. While these funds may give


18

higher returns. They are more risky
compared to the diversify fund. Investors need to keep a
watch on the performance of those sectors and must exit
at an appropriate time.

4. Tax Saving Schemes
These schemes offer tax rebates to the investors
under specific provisions of the Income Tax Act, 1961 as
the government in specified avenues. e.g. Equity Linked
Saving Schemes (ELSS) pension Schemes launched by the
mutual funds also offer tax benefits. These schemes are
growth oriented and invest predominately in equities.













19


1.6 VARIOUS TYPES OF PLAN

SYSTEMATIC INVESTMENT PLAN (SIP)
Under this, affixed sum is invested each month on
a fixed date of a month. Payment is made through post
dated cheques or direct debit facilities. The investors get
fewer units when the NAV is high and gets more units
when the NAV is low. This is called as the Benefit of
Rupee Cost Averaging

SYSTEMATIC WITHDRAWAL PLAN (SWP)
An opposed to the SIP, the SWP allows the
investors the facility to withdraw the pre determined
interval. The investors units will be redeemed at the
existing NAV as on that day.

SYSTEMATIC TRANSFER PLAN (STP)
They allow the investors to transfer on a periodic
basis a specifying amount from one scheme to another
within the same fund family meaning two schemes
belonging to the same mutual fund. A transfer will be
treated as redemption of units from the scheme from
which the transfer is made. Such redemption or
investment will be at the applicable NAV. This service
allows the investor to manage his investment activity to
achieve his objectives.

20


1.7 ADVANTAGE OF MUTUAL FUND

1) PROFESSIONAL MANAGEMENT
Fund managers, people who are highly qualified in
the area of investment and have a thorough knowledge of
the capital market, manage mutual fund.
2) DIVERSIFICATION AND LOWERED RISKS
Mutual fund invests in a number of companies
across a broad cross section of industries and sectors.
This diversification reduces the risk because all stock
cannot go through adown trend at the same time and in
the same proportion. You achieve this diversification
through a mutual fund with far less money than you can
do on your own.
3) LOW COSTS
When compared to direct investment in the capital
market, funds cost less. This is due to savings in
brokerage costs, demat costs, depositary costs etc
4) LIQUIDITY
Investments in mutual funds are quite liquid and
hence can be redeemed at the Net Assets Value related
price on any working day.
5) TRANSPARANCY
All that you invest in a scheme is made known to you
and you are periodically informed about all the updates
and changes taking place.


21

6) FLEXIBILITY
Mutual funds offer flexibility in their options and
schemes to match individual needs. Also, with features
like regular withdrawal plans and systematic investment
plans. You can withdraw or invest funds according to
your needs and convenience.
7) TAX BENEFITS
Mutual funds offer a host of tax benefits. Dividend
income received from investing in equity and debt
schemes of a mutual fund is tax free in the hand of the
investor.
8) REGULATION
Mutual funds are regulated by SEBI and function
within provisions and regulations that protect the
interests of investors. SEBI acts as watchdog to ensure
fair market practices.










22


1.8 DISADVATAGES OF MUTUAL FUND

1) COST CONTROL NOT IN THE HANDS OF AN
INVESTOR
Investor has to pay investment management fees
and fund distribution cost as a percentage of the value of
his investments, irrespective of the performance of the
fund.
2) NO GURANTEES
No investments are 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. However, anyone who invests through a mutual
fund runs the risk of losing money.
3) MANAGEMENT RISK
When you invest in a mutual fund, you depend on
the funds manager to make the right decisions regarding
the funds portfolio. If the manager does perform as well
as you had hope, you might not makes as much money
on your investment as you expected of course.
4) DIFFICULTY IN SELECTING A SUITABLE FUND
SCHEME
Many investors find it difficult to select one
option from the plethora of funds/schemes/ plans
available. For this, they have to take advice from financial
planners in order to invest in the right fund to achieve
their objective.

23


1.9 BANKS V/S MUTUAL FUNDS





BANKS MUTUAL
FUNDS
Returns Low Better
Administrative
exp.
High Low
Risk Low Moderate
Investment
options
Less More
Network High
penetration
Low But
improving
Quality of
assets
Not
Transparent
Better
transparency
Interest
Calculation
Minimum
balance b/w
10
th
& 30
th
of
every month
Every year
Guarantee Maximum
Rs.1 lakh on
deposits
None

24


1.10 COMPARISION OF INDIAN
INVESTMENT OPTIONS
Investment means putting your money to work to earn
more money. You do not be wealthy to be an investor.
Investing even a small amount can produce considerable
rewards over the long term, especially if you do it
regularly. But you need to make decision about how
much you want to invest and where to invest it. To choose
wisely, you need to know the investment options
thoroughly and there relative risk exposures. Financial
planning is the process of meeting your lifes goal through
proper management of your finances.
Investment
Options
Liquidity Safety Returns Volatility
Equity
shares
Moderate
to High
Low Uncertain High
Debentures Low Moderate Moderate Moderate
Deposit Low Moderate Low Low
LifeInsurance Low High Low Low
RBI Bonds Moderate High Moderate Low
Bank Fixed
Deposits
High High Low Low
PPF Low High Moderate Low
Post Office High High Good Low
NSC Low High Moderate Low
Gold High High Moderate Moderate
Real Estates Low Moderate Variable High

25


1.11 IMPACT OF TAX ON INCOME FROM
MUTUAL FUND
Income earned from Mutual fund falls under two
heads;-
1. Dividend income
2. Capital gain
Given that the tax implication can have a significant
impact on the return earned it is necessary to understand
the tax implication for both these heads of income.
(1) .DIVIDEND INCOME
Lets take income earned under the head of dividends
first. As per existing tax provisions income from dividends
is tax free in the hands of the investors. However this is
not to say that there is no tax levied at all. To the
contrary, there is a levy of 15% of the dividends declared
as distribution tax. This tax is paid out of the profits of
the mutual funds schemes declaring the dividends. The
dividends distribution tax has to be paid only in the case
if debt scheme of the mutual fund. Equity schemes are
exempt from tax.
So, if you were to receive Rs. 100 as dividends
from a debt mutual fund it is an equivalent to Rs. 115
being paid out, the incremental Rs. 15 having being paid
to the government as distribution tax. In case of equity
funds however, as mentioned, there will be no. such
implication.

26


(2).CAPITAL GAIN
Capital gains from mutual fund are two types,
Short terms and long term capital gains. This
classification is based upon the periods of holding. If the
investment is sold within 365 days from the date of
purchase, any capital gain made would be treated as
short term nature. Such capital gain will be treated as
part of the total income and chargeable to tax at the
normal rate of tax. If the mutual fund investment is sold
after 365 days from the date of purchase, any capital gain
made during that period will be treated as long term
capital gain and they get tax deduction and they are not
liable to pay the tax.

Tax benefits
Section 88, 88B, 88C scrapped. New section 80C
introduced under which tax payers can directly claim
deductions up to Rs.1 lakhs from their income. All
investment eligible U/S 88, are being placed U/S 80C
without any sactoral caps. Amount invested under section
80CCC, 80CCD to be included U/S 88C. No changes in
tax treatment on capital gain on mutual fund units.
Investment in ELSS can be done up to 1 lakhs to claim
deduction under sectional 88C as against previous limit.



27


1.12 THE PROCESS OF PURCHASE AND
REDEEM UNIT
The most common method to invest in a fund once
you are in it is to simply fill out investment forms and
write a check to the mutual fund family. This is probably
the easiest but it often takes the few days or even a week
to have the funds credited to your account.
Another method that is common, automatic
withdrawals. This allows you to have a certain amount
which you choose to be deducted from your bank account
each month. These are excellent for getting into the habit
of investing on a regular basis.
The fund will also provide information on how you
can redeem your shares. Once common way is to request
redemption by filling out a form or writing a letter to the
mutual fund family. This is the most common method but
it is not only one.
Now that you understand the basis of a prospectus,
you are one step closer to getting started in mutual fund.
So, when you finally receive the information you
requested on a mutual fund, look it over carefully and
make an educated decision if it is right for you.




28


2.1 INTRODUCTION OF RELIANCE
COMAPANY LTD

RELIANCE INDUTRIES LIMITED-INDIAS LARGEST
BUSINESS HOUSE
Reliance group was founded by Dhirubhai Ambani
in 1966 as a polyester firm. Dhirubhai started the equity
cult in India. Reliance later entered into financial services,
petroleum refining, power sector. By 2002 Reliance had
grown into a $15 billion conglomerate. After the death of
Dhirubhai Ambani on July 6, 2002, Reliance was headed
by his sons. The group was formed after the two feuding
brothers Mukesh Ambani and Anil Ambani, split Reliance
Industries.
The Groups activities span exploration and
production of oil & gas, refining and marketing,
petrochemicals, textiles, financial services & insurance,
power& telecom. The Group exports its products to more
than 100 countries of the world. Reliance emerged as
Indias Most Admired Business House, for the third
successive year in a TNS mode survey for 2003.

Reliance Group Revenue is equilent to about 3.5% of
Indias GDP. The group contributes nearly 10 % of the
countrys indirect tax revenues and over 6% of Indias
exports.

29



RELIANCE INDUSTRIES LTD. - INDIAS LARGEST
PRIVATE SECTOR COMPANY
RELIANCE INDUSTRIES LTD. is Indias largest
private sector company on all major financial parameters
with gross turnover of Rs.74,418 Crore, cash profit of
Rs.9197 crore, net profit of Rs.34,452 crore, net worth of
Rs.50,483 crore and total assets of Rs. 71,157 crore.
RIL emerged as the only Indian company in the list
of global companies that create most value of their
shareholders, published by Financial Times based on a
global survey and research conducted by Price Warehouse
Cooper in 2004.RIL features in the Forbes Global list of
worlds 400 best big companies and in FT Global 500 list
of worlds largest companies.
RIL emerged as the Best Managed Company in
India in a study by Business Today and A.T.Kearney in
2003.The Company emerged Indias biggest wealth
creator in the private sector over a 5 year period in a
study by business today.







30


2.2 RELIANCE MUTUAL FUND

REALIANCE MUTUAL FUND (RMF) has been
sponsored by REALIANCE CAPITAL LTD (RCL). RCL has
been promoted by RELIANCE INDUSTRIES LTD., one of
the Indias largest private sector enterprise.RIL has net
worth Rs.5 ,483 crores as on march 31 2010 and
currently has a large family of shareholders.RCL is a non
banking finance company engaged in leasing ,investment
and other fund based activities.

RMF has been established as a trust under the
Indian Trust Act, 1882 with Reliance Capital Trustee Co.
Limited, as the Trustee. RMF has been registered with the
Securities & Exchange Board of India (SEBI) vide
registration number MF/022/95/1 dated June 30, 1995.

As of end August 2006, Reliance mutual fund has
Rs 28,753 crore of assets under management. Reliance
Equity Fund, launched by Reliance MF in early 2006, is
the largest mutual find scheme in the country with a fund
size of over





31


2.3 RELIANCE ASSET MANAGEMENT
COMPANY LIMITED
Reliance Capital Asset Management Limited
(RCAM), a company registered under the companies Act
1956 was appointed to act as the investment manager of
Reliance Mutual Fund.

RCAM is a wholly owned subsidiary of Reliance
Capital Limited, the sponsor. The entire paid up capital of
RCAM is held by Reliance capital Limited.

RCAM was approved as the Asset Management
Company for the mutual fund by SEBI vide their Letter
No.IIMARP/1264/95 dated June, 30 1995. The mutual
fund was entered into an Investment Management
Agreement (IMA) with RCAM dated May 12 1997 in line
with SEBI Regulations, 1996. Pursuant to this IMA,
RCAM is authorized to act as Investment manager of
Reliance Mutual Fund. Reliance Mutual Fund has
launched 35 schemes till date.






32


2.4 RMF INVESTMENT PROCESS

The sole business of the organization is to to
manage clients investment and to fill full their need from
cap-a-pie. At RMF the people are education centric, the
relationship manger will help you in identifying and
understanding your needs and helps you develop a
portfolio across different assets classes commensurate to
your needs. This practice is only performed at RMF and
this is what makes it superior to other competition in this
same field.

There are well trained expert who will give a feel on
the various assets classes and explain you the risk
associated with each in a simple and lucid manners to
put you at clam. Once the invest is planned and done we
dont leave our client in between, but we back them by
periodic valuation report and regular relevant information
through news, letter, e-mail, roads shows etc.

The prime concern of the people at RMF will be to
help you attain peace of mind on the investment points.





33


2.5 PHILOSOPHY OF RMF
It aims to provide need based solution for long term
wealth creation.
Educating and disclosing all the important facts
which the customers needs to be aware of, is
important.
It aim to provide all its customer, directly or
indirectly, with true, unbiased, need based solution
an advice that best meets their stated and unstated
needs.
At RMF its aim is to earn the trust of investors and
respect of the employees, customers, partner and
regulators.
To restructure investment plans on demand of
investors.
To provide reliable information also.
To guide the investors for their future investment.








34


2.6 PROJECT AT GLANCE

*Name of the company*
Reliance Mutual Fund

*Corporate office*
Reliance Capital Assets Management Ltd.
Express Building, 4th floor, 14 E Road,
Church Gate, Mumbai-400020.

*Registered Office*
Reliance House,
Nr. Mardia plaza,
Opp.C.G. Road,
Ahemdabad-380006.

*Form of Organization*
Private limited company.

*Year of establishment*
30
th
June, 1995.

*Types of Service*
Portfolio Management Service under head of Mutual
Fund.



35


*Website*
www.reliancemutual.com

*Toll free no.*
1800-300-11111

*Telephone No.*
022-30301111

*E-mail*
Customer-care@relaince. mutual.com















36


2.7 MANAGEMENT TEAM

Management Team
Chief Executive Officer - Sandeep Sikha
Head Equity Investors - Sunil B. Singhania
Head Fixed Income - Amitabh Mohanty
Board of Directors
Mr. Kanu Doshi
Mr. Manu Chadha
Mrs. Sushi Tripathi
Mr. Soumen Ghos
Equity Fund Management Team
Sunil Singhania
Ashwani Kumar
Sailesh Raj Bhan
Ompraksh S. Kuckian
Krishan Daga
Samir Rachh
Jhanvee Shah
Shrey Loonker
Debt Fund Manager
Mr.Amitabh Mohanty
Mr.Amit Tripathi




37

Head of Department
Himanshu Vyapak Executive-vice, President-Sales &
Distribution.
Pradeep Andrade Infrastructure & Admin
Milind Gandhi Chief Financial Officers
Vinay Nigudkar Information Technology
Bhalchandra Jhoshi Head Service Delivery
&Operation
Geeta Chandran Operation &Settlement
Sanjay Kumar Singh Head Product Development.

Zonal Head
Gurbir Chopra Northern Zone
Aashwin Dugal Western Zone
Gopal Khitan Southern Zone
Vikas Rathie Eastern Zone










38


2.8 ORGANIZATION CHART






MANAGING DIRECTOR
CHAIRMAN
BOARD OF DIRECTORS.
CHIEF EXECUTIVE
OFFICER
COMPANY.
BRANCH
MANAGER
BRANCH
MANAGER



BRANCH
MANAGER


BRANCH
MANAGER



39


2.8 VISION & MISSION STATEMENT

Vision
To be globally respected wealth creator with an
emphasis on customer care and a culture of good
corporate governance and also provide good service to the
consumers

Mission
To create and nurture a world class, high
performance environment aimed at delighting our
customer















40


2.10 DIVIDEND POLICY OF RELIANCE
MUTUAL FUND


It refers that RMF are many fund which is in the
market. Each fund have many option to the invest the
money of the investors. There are growth option, dividend
option, etcthe investor choose option as per his
requirement which the company paid dividend to the
investor weekly, monthly, yearly. A major decision of
financial management is the dividend decision in the
sense that the firm chose the distributing the dividends to
the investors and the also provided facilities of the
reinvestment of the dividend.














41


2.11 RELIANCE MUTUAL FUND
BRANCHES IN GUJARAT

Ahmadabad
4
th
floor, Mega House, Mithakali,
Low garden road, Ellis Bridge,
Ahmadabad 380 006

Rajkot
3
rd
floor, Plus Point, Opp. Haribhai Hall,
Near Ramakrishna Ashram,
Yagnik Road,
Rajkot 360 001

Anand
2
nd
Floor, 204 Maruti Sharnam,
Anand Vidhyanagar Road,
Anand 388 001

Bhavnagar
3
rd
floor, corporate house,
Plot no.113, Waghawadi Road.
Bhavnagar 364 004





42


2.12 DIFFERENT SCHEMES OFFERED BY
RELIANCE MUTUAL FUND

Reliance Vision Fund
The primary objective of the schemes is to achieve
long term growth of capital by investment in equity and
equity related securities through a research based
investment approach.

Reliance Equity Advantage Fund
The primary objective of the schemes is to seek to
generate capital appreciation and provide long term
growth opportunities by investing in a portfolio
predominately of equity & equity instrument with
investment generally in S & P CNX Nifty stocks and the
secondary objective is to generate consistence return by
investing in debt and money & money market securities.

Reliance Equity Fund
The investment objective of the schemes is to seek to
generate capital appreciation and provide long term
growth opportunities by investing in portfolio constituted
of equity & equity related securities of top 100 companies
by market capitalization and of companies which are
available in the derivatives segment from time to time and
the secondary objective is to generate consistent returns
by investing in debt and money market securities.


43


Reliance Index fund Nifty plan
The investment objective of the schemes is to
replicate the composition of the Nifty, with a view to
generate returns that are commensurate with the
performance of the Nifty, subject to tracking errors.

Reliance Growth Fund
The investment objective of the schemes is to achieve
long term growth of capital by investing in equity and
equity related securities through a research based
investment approach.

Reliance Long Term Equity Fund.
The investment objective of the schemes is to seek
to generate long term capital appreciation and provide
long term growth opportunities by investing in a portfolio
constituted of equity and equity related securities and
Derivatives and the secondary objective are to generate
consistent returns by investing in debt and money
markets securities.

Reliance Small Cap Fund
The investment objective of the schemes is to seek
to generate capital appreciation by investing pre
dominantly in equity and equity related instruments of
small cap companies and the secondary objective is to

44

generate consistent returns by
investing in debt and money market securities.

Reliance Equity Opportunities Fund
The investment objective of the schemes is to seek
to generate capital appreciation and provide long term
growth opportunities by investing in a portfolio
constituted of equity securities & equity related securities
and the secondary objective is to generate consistent
returns by investing in debt and money market securities.

Reliance Infrastructure Fund
The investment objective of the schemes is to seek
to generate long term capital appreciation by investing
predominantly in equity and equity related instrument of
companies engaged in infrastructure related sectors and
which are in corporate or have their area of primary
activity.

Reliance Natural Resources Fund
The investment objective of the schemes is to seek
to generate capital appreciation & provide long term
growth opportunities by investing in companies
principally engaged in the discovery, development,
production or distribution of natural resources.




45


Reliance Banking fund
The investment objective of the schemes is to seek
to generate continuous returns by actively investing in
equity & equity related or fixed income securities of
companies in the banking sector.

Reliance Diversified Power Sector Fund
The investment objective of the schemes is to seek
to generate continuous returns by actively investing in
equity & equity related or fixed income securities of power
and other associated companies.

Reliance Media & Entertainment Fund
The investment objective of the schemes is to seek
to generate continuous returns by investing in equity and
equity related or fixed income securities of media &
entertainment and other associated companies.

Reliance Pharma Fund
The investment objective of the schemes is to seek
to generate consistent returns by investing in equity &
equity related or fixed income securities of pharma and
other associated companies.

Reliance Tax Saver (ELSS) Fund
The investment objective of the schemes is to seek
to generate long term capital appreciation from a portfolio

46

that is invested predominately in
equity & equity related instruments.

Reliance Equity Linked Saving Fund(ELSS)
The investment objective of the schemes is to seek
to generate long term capital appreciation from a portfolio
that is invested predominantly in equities along with
income tax benefit.

Reliance Liquidity Fund
The investment objective of the schemes is to seek
to generate optimal returns consistent with moderate
levels of risk and high liquidity. Accordingly investment
shall predominantly be made in debt and money market
Instrument.

Reliance Money Manager Fund
The investment objective of the schemes is to seek
to generate optimal returns consistent with moderate
levels of risks and liquidity by investing in debt securities
and money market securities.

Reliance Medium Term Fund
The investment objective of the schemes is to seek
to generate regular income in order to make regular
dividend payments to unit holders and the secondary
objective is growth of capital.


47

Reliance Income Fund
The investment objective of the schemes is to seek
to generate optimal returns consistent with moderate
levels of risk. This income may be complemented by
capital appreciation of the portfolio. Accordingly,
investments shall be made in debt & money market
instruments.

Reliance Gilt Securities Fund
The investment objective of the schemes is to
generate optimal credit risk free returns by investing in a
portfolio of securities issued and guaranteed by the
Central Government and State Government.

Reliance Monthly Income Plan
The investment objective of the schemes is to seek
to generate regular income in order to make regular
dividend payments to unit holders and the secondary
objective is growth of capital.

Reliance Gold Exchange Traded Fund
The investment objective is to seek to provide
returns that closely correspond to returns provided by
price of gold through investment in physical Gold.
However, performance of the schemes may differ from that
of the domestic prices of gold due to expenses and or
other related factor.


48


3.1 INTRODUCTION OF NAV

In general senses, the performance of a mutual
fund are denoted by Net Assets Value. The investors
funds are deployed in a portfolio of securities by the fund
manager. The value of these investment keeps changing
as the market price of the securities change since
investors are free to enter and exit the fund at any time, it
is essential that the market value of their investment is
used to determine the price at which such entry and exist
will tax place. The NAV per unit is the market values of
securities of a scheme divided by the total no of units of
the scheme of any particular date. The net asset
represents the market value of assets, which belongs to
the investors, on a given date. NAV is the value of one unit
of investment in the fund, in net asset terms.

For e.g. If the market value of securities of a mutual fund
scheme is Rs. 200 lakhs and the mutual fund has issued
10 lakhs unit at Rs. 10 each to the investors, then the
NAV per unit of the fund is Rs.20.








49


3.2 CALCULATION OF NAV

NAV=Net assets value of the schemes /No. of units
outstanding
NAV is equals to- Market / fair value of schemes
(+) Receivables
(+) Accrued income
(+) Other assets
(-) Accrued expenses
(-) Payables
(-) Other liability
(/) Number of unit outstanding.

Here, "other assets" includes any income due to the fund
but not received as on the valuation date (for example,
dividend announced by a company but yet to be received).
Similarly, "other liabilities" includes expenses payable by
the fund, for example management fees payable to the
AMC. Thus, SEBI requires that all expenses and incomes
are accrued up to the valuation date and considered for
NAV computation



50


The major factor affecting the NAV of a fund are;
Sale and purchase of securities
Sale and repurchase of unit
Valuation of assets
Actual of income and exp.

In the context of mutual funds, NAV per share is
computed once a day based on the closing market prices
of the securities in the fund's portfolio. All mutual funds'
buy and sell orders are processed at the NAV of the trade
date. However, investors must wait until the following day
to get the trade price.

NAV of all schemes must be calculated and
published at least weekly for closed end schemes and
daily for open end schemes. Mutual funds pay out
virtually all of their income and capital gains. As a result,
changes in NAV are not the best gauge of mutual fund
performance, which is best measured by annual total
return.

Mutual funds pay out virtually all of their income
and capital gains. As a result, changes in NAV are not the
best gauge of mutual fund performance, which is best
measured by annual total return.



51


4.1 INTRODUCTION

Research means to collect the data and analysis it
with the help of a graph, tabulation etc. And gives some
findings which is useful to the research and other needy
people in their research and other needy people in their
research project
Here Research has collected the secondary data of
the different types of mutual funds of Reliance Mutual
fund &HDFC mutual fund. Research has collected
annually return on the different schemes of the Reliance
mutual fund & HDFC mutual fund. The financial
information provided by the company is become more
difficult to understand. One must possess ability to
understand and oversee risk. Research has found out on
the annual return of last five years of some schemes of
both mutual fund with the help of chart and small sample
test.
This information gives quite useful information to
the sampled unit to improve their position as well as to
the investor for investing their money in the different
schemes of funds. This information is also useful to the
adviser, manager, employees etc. of the company




52


4.2 OBJECTIVES OF THE STUDY

The main objectives of the study are as follows:-
To compare NAV of various schemes on various years
To know the profitability of the different schemes of the
mutual funds.
To get the idea about the highest benefit from the
different mutual fund schemes.
To know the efficiency of the sampled unit.
These studies also give risk margin.
To understand overall performance of various schemes
of both the mutual fund companies.
To know which Asset Management company is give
higher return to the investors.
To know which type of fund is preferred by the
investors.











53


4.3 SCOPE OF THE STUDY

Scope of the study means the study whichever is
carried out where it wills helpful future.
The study is useful to the Company in the following
ways..
This study will be helpful to the MF companies to know
where it is lacking behind.
This study will helpful to know the investor satisfaction
towards return provided by company.
On the basis of the study company can take the
corrective action.
Through this study company can get idea about the
competitors efficiency and they will take corrective
steps.
Through this study company can get the idea about at
which level they reach and what type of changes are
required.










54


4.4 SAMPLING PROCESS

The basic idea of sampling is that by selecting
some of the elements in a population, we may draw
conclusion about the entire populations. A sample is a
part of the target population carefully selected to
represent that populations sampling include following
process.













Sample Size:-
Reliance Mutual Fund
HDFC Mutual Fund

Sampling Technique:-
Convient Random Sampling
Define
Populations
Specify sampling
unit
Determining
sample size
Selection of
sampling method
Specifying
sampling plan
Selection of
sample

55


4.5 DATA COLLECTION

There are two kinds of data that can be collected
for research purpose. Based on the requirement in the
research appropriate data is collected. Both the kinds of
data are shown below.
Primary Data
Secondary Data

PRIMARY DATA
Primary data are collected and gathered for the
first time. Primary data are sought for their proximately to
the truth and control over error. Primary data are
collected by you &agents known to you especially to
answer your research question. In the primary data are 3
ways to collect it.
1. Observation
2. Survey
3. Focus

SECONDARY DATA
Secondary data are collected by someone else.
There are two ways to collect the data.
1. Published data
2. Unpublished data


56

By analyzing the requirement of data
here in this project report the secondary data is used for
the purpose of research work. Researcher has collected
annually return on the different schemes of the Reliance
mutual fund & HDFC mutual fund for the calculating
chart & Small Sample Test. I have also used the materials
provided by the mutual fund company.






















57


4.6 RESEARCH INSTRUMENTS

This is also part of research of methodology.
Instrument which I have used in my research are as
under:
Mean
Standard Deviation
F Test
There are two types of the sample tests for analysis of
statistical data. For analysis, you can choose the test
according to the sample size. They are as under

LARGE SAMPLE TEST
SMALL SAMPLE TEST

LARGE SAMPLE TEST

For testing a given hypothesis a random sample is
drawn from a population. If the no. of unit in the sample
is greater than 30, it is generally regarding as large
sample. The following tests will be included in this test.
Normal distribution is used for the testing.





58

Test of variance
A. Test of Significance of a mean
B. Test of Significance of difference between two means.
C. Test of Significance of difference between two standard
deviations.

Test of attributes
A. Test of significance of proportion of successes
B.Test of significance difference between two proportions

SMALL SAMPLE TEST

For testing a given hypothesis a random sample is
drawn from a population. If the No. of unit in the sample
is less than 30, it is generally regarding as a small
sample. We shall study the tests of significance for small
sample tests. The following tests will be included in this
test. Here, standard deviation is used for testing. In small
sample test there are also included two test T-test & F-
test.

F- Test
If we have two samples and to hypothesis that the
population variances are equal that time we use the F-
Test. In which, two method are included.
1. Significance of variance
2. ANOVA table

59


T-Test
If we have more than two samples and to hypothesis
that the population mean are equal that time we use the
T-Test. In which following method included.
1. Significance of mean
2. Significance of means
3. Significance of Co-relation Regression

Here, the hypothesis on the basis of a two sample
size and samples are less than 30. So, we used F-Test,
ANOVA table.



















60


4.7 METHOD OF DATA ANALYSIS

The data collected are tabulated according to the
annual returns received of last five years on each schemes
of both the mutual fund company. The steps of the data
analysis are as under

The data was collected from the different mutual fund
schemes of different companies and was complied in
an Excel sheet.
Then I used MS Excel software for in depth- analysis
of the survey.
With the help of descriptive Statistical tools of
analysis in MS Excel analyzed the whole data.












61


4.8 LIMITATION OF THE STUDY

There are many limitations while conducting my
study which are as follows:

Time constraint as the training is of 1 month I cannot
get the proper data within a limited time period.
Generalization of my study is not possible.
Research has been done on the secondary data , the
data itself has own limitation.
The period of study is 5 years. So, before and after 5
years changes take place are not considered.
Reliance Mutual Fund is large scale company, so not
possible to study the entire department.














62


5.1 DATA ANALYSIS

Under the topic A Comparative Study of NAVS in
Reliance Mutual Fund & HDFC Mutual Fund in which
we compare the annual returns of the RMF & HDFC MF
and for that we take the annual returns of the some
selected schemes and compare with each other. For
analysis of the data, we used F-Test and chart. Schemes
are as under.

ANNUAL RETURNS ON EQUITY ORIENTED SCHEMES
1. Equity Fund
2. Tax Sever Fund
3. Top 200 fund

ANNUAL RETURNS ON DEBT ORIENTED SCHEMES
1. Income Fund
2. Liquid cash
3. Monthly Income Plan
4. Short Term Fund








63


ANNUAL RETURNS ON EQUITY ORIENTED
SCHEMES
(1) .EQUITY FUND
The investment objective of the schemes is to seek to
generate capital appreciation and provide long term
growth opportunities by investing in portfolio constituted
of equity & equity related securities.

SR.NO YEAR RELIANCE
MF
HDFC MF
1 2006 0 35.86
2 2007 52.01 53.61
3 2008 -44.85 -49.68
4 2009 54.72 105.57
5 2010 0.28 29.22

TEST OF HYPOTHESIS
H0: There is no significant difference between annual
returns of Reliance Equity fund & HDFC Equity Fund
during the period of study.
F-Test Two-Sample for Variances

Reliance MF HDFC MF
Mean 12.432 34.91
Variance 1734.53 3132.81
Observations 5 5
Df 4 4
F 0.55
P(F<=f) one-tail 0.29
F Critical one- 0.15

64




INTERPRETATION:-
As the calculated value of F is greater than the critical
value of F in case of years so, the null hypothesis H0 is
rejected. So the researcher may conclude that there is
significant difference in NAVs of sample units during the
period of study.
As the calculated value of F is smaller than the
critical value of F in case of Mutual Fund companies so,
the null hypothesis Ho is accepted. So, the researcher
may conclude that there is no significant difference
between NAVs of Reliance MFs and HDFC MFs.
ANOVA: Two-Factor Without Replication

SUMMARY Count Sum Average Variance
2006 2 35.86 17.93 642.96
2007 2 105.62 52.81 1.28
2008 2 -94.53 -47.26 11.66
2009 2 160.29 80.14 1292.86
2010 2 29.5 14.75 418.76
Reliance
MF
5 62.16 12.43 1734.53
HDFC MF 5 174.58 34.91 3132.81
ANOVA

Source of
Variation
SS Df MS F F crit
Years 18365.71 4 4591.42 16.63 6.38
MF Co. 1263.826 1 1263.82 4.58 7.70
Error 1103.712 4 275.92
Total 20733.24 9

65

-60
-40
-20
0
20
40
60
80
100
120
1 2 3 4 5
A
N
N
U
A
L

R
E
T
U
R
N

NO.OF YEARS
EQUITY FUND
RELIANCE MF
HDFC MF





























66

(2) TAX SEVER (ELSS) FUND
The investment objective of the schemes is to seek
to generate long term capital appreciation from a portfolio
that is invested predominantly in equities along with
income tax benefit.

SR.NO. YEAR RELIANCE MF HDFC MF
1 2006 34.49 34.12
2 2007 42.4 39.44
3 2008 -52.35 -51.55
4 2009 82.01 99.07
5 2010 22.49 26.43

TEST OF HYPOTHESIS
H0: There is no significant difference between annual
returns of Reliance Tax sever fund & HDFC Tax Sever
Fund during the period of study.











F-Test Two-Sample for Variances

Reliance
MF
HDFC MF
Mean 25.80 29.50
Variance 2407.25 2884.66
Observations 5 5
Df 4 4
F 0.83
P(F<=f) one-tail 0.43
F Critical one-tail 0.15

67

ANOVA: Two-Factor Without Replication

SUMMARY Count Sum Average Variance
2006 2 68.61 34.305 0.068
2007 2 81.84 40.92 4.38
2008 2 -103.9 -51.95 0.32
2009 2 181.08 90.54 145.52
2010 2 48.92 24.46 7.76
Reliance
MF
5 129.04 25.808 2407.25
HDFC MF 5 147.51 29.502 2884.66

ANOVA

Source of
Variation
SS Df MS F F
crit
Years 21043.74 4 5260.93 169.79 6.38
MF Co. 34.11 1 34.11 1.10 7.70
Error 123.93 4 30.98
Total 21201.79 9

INTERPRETATION:-
As the calculated value of F is greater than the
critical value of F in case of years so, the null hypothesis
H0 is rejected. So the researcher may conclude that there
is significant difference in NAVs of sample units during
the period of study.
As the calculated value of F is less than the critical
value of F in case of Mutual Fund companies so, the null
hypothesis is accepted. So, the researcher may conclude
that there is no significant difference between NAVs of
Reliance MFs and HDFC MFs.

68

-60
-40
-20
0
20
40
60
80
100
120
1 2 3 4 5
A
N
N
U
A
L

R
E
T
U
R
N
S

NO. OF YEARS
TAX SEVER FUND
RELIANCE MF
HDFC MF




















69


(3) TOP 200 FUND


SR.NO YEAR RELIANCE
MF
HDFC MF
1 2006 0 37.44
2 2007 0 54.46
3 2008 -49.16 -45.35
4 2009 73.43 94.46
5 2010 19.36 25.05


TEST OF HYPOTHESIS
H0: There is no significant difference between annual
returns of Reliance Top 200 fund & HDFC Top 200 Fund
during the period of study.












F-Test Two-Sample for Variances

Reliance
MF
HDFC MF
Mean 8.72 33.212
Variance 1950.69 2614.81
Observations 5 5
Df 4 4
F 0.74
P(F<=f) one-tail 0.39
F Critical one-tail 0.15

70

ANOVA: Two-Factor Without Replication
SUMMARY Count Sum Average Variance
2006 2 37.44 18.72 700.87
2007 2 54.46 27.23 1482.94
2008 2 -94.51 -47.25 7.25
2009 2 167.89 83.94 221.13
2010 2 44.41 22.20 16.18
Reliance
MF
5 43.63 8.72 1950.69
HDFC MF 5 166.06 33.21 2614.81

ANOVA

Source
of
Variation
SS Df MS F F crit
Years 17332.55 4 4333.13 18.64 6.38
MF Co
.
1498.91 1 1498.91 6.45 7.70
Error 929.48 4 232.37
Total 19760.95 9

INTERPRETATION:-
As the calculated value of F is greater than the
critical value of F in case of years so, the null hypothesis
H0 is rejected. So the researcher may conclude that there
is significant difference in NAVs of sample units during
the period of study.
As the calculated value of F is smaller than the
critical value of F in case of Mutual Fund companies so,
the null hypothesis is accepted. So, the researcher may
conclude that there is no significant difference between
NAVs of Reliance MFs and HDFC MFs.

71

-60
-40
-20
0
20
40
60
80
100
120
1 2 3 4 5
A
N
N
U
A
L
R
E
T
U
R
N
S


NO. OF YEARS
TOP 200 FUND
RELIANCE MF
HDFC MF














72


ANNUAL RETURNS ON DEBT ORIENTED SCHEMES

(1). INCOME FUND
The investment objective of the schemes is to seek
to generate optimal returns consistent with moderate
levels of risk. This income may be complemented by
capital appreciation of the portfolio. Accordingly,
investments shall be made in debt & money market
instruments.
SR.NO YEAR RELIANCE MF HDFC MF
1 2006 5.94 2.79
2 2007 9.27 7.89
3 2008 21.49 16.08
4 2009 -0.65 1.85
5 2010 4.21 5.59

TEST OF HYPOTHESIS
H0: There is no significant difference between annual
returns of Reliance Income fund & HDFC Income Fund
during the period of study.
F-Test Two-Sample for Variances

Reliance
MF
HDFC MF
Mean 8.052 6.84
Variance 69.25 32.33
Observations 5 5
Df 4 4
F cal 2.14
F Critical one-tail 6.38


73

ANOVA: Two-Factor Without Replication

SUMMARY Count Sum Average Variance
2006 2 8.73 4.36 4.96
2007 2 17.16 8.58 0.95
2008 2 37.57 18.78 14.63
2009 2 1.2 0.6 3.12
2010 2 9.8 4.9 0.95
Reliance
MF
5 40.26 8.05 69.25
HDFC MF 5 34.2 6.84 32.33

ANOVA

Source
of
Variation
SS df MS F F crit
Years 385.40 4 96.35 18.39 6.38
MF Co. 3.67 1 3.67 0.70 7.70
Error 20.95 4 5.23
Total 410.02 9

INTERPRETATION:-


As the calculated value of F is greater than the
critical value of F in case of years so, the null hypothesis
H0 is rejected. So the researcher may conclude that there
is significant difference in NAVs of sample units during
the period of study.
As the calculated value of F is smaller than the
critical value of F in case of Mutual Fund companies so,
the null hypothesis is accepted. So, the researcher may
conclude that there is no significant difference between
NAVs of Reliance MFs and HDFC MFs.

74

-5
0
5
10
15
20
25
1 2 3 4 5
A
N
N
U
A
L

R
E
T
U
R
N
S

NO. OF Y E A R S
INCOME FUND
RELIANCE MF
HDFC MF
















75


(2). LIQUID CASH
The investment objective of the schemes is to seek to
generate optimal returns consistent with moderate levels
of risk and high liquidity. Accordingly investment shall
predominantly be made in debt and money market
Instrument.

SR.NO YEAR RELIANCE MF HDFC MF
1 2006 6.06 6.05
2 2007 5.87 8.12
3 2008 6.92 8.9
4 2009 2.45 5.29
5 2010 4.4 5.15

TEST OF HYPOTHESIS
H0: There is no significant difference between annual
returns of Reliance Liquid cash fund & HDFC Liquid Cash
Fund during the period of study.

F-Test Two-Sample for Variances

Reliance MF HDFC MF
Mean 5.14 6.70
Variance 3.08 2.91
Observations 5 5
Df 4 4
F 1.05
P(F<=f) one-tail 0.47
F Critical one-tail 6.3




76

ANOVA: Two-Factor Without Replication

SUMMARY Count Sum Average Variance
2006 2 12.11 6.05 5.05
2007 2 13.99 6.99 2.53
2008 2 15.82 7.91 1.96
2009 2 7.74 3.87 4.03
2010 2 9.55 4.77 0.28
Reliance
MF
5 25.7 5.14 3.08
HDFC MF 5 33.51 6.70 2.91


ANOVA

Source
of
Variation
SS df MS F F crit
Years 21.29 4 5.32 7.86 6.38
MF Co. 6.09 1 6.09 9.01 7.70
Error 2.70 4 0.67
Total 30.10 9

INTERPRETATION:-

As the calculated value of F is greater than the
critical value of F in case of years so, the null hypothesis
H0 is rejected. So the researcher may conclude that there
is significant difference in NAVs of sample units during
the period of study.
As the calculated value of F is greater than the
critical value of F in case of Mutual Fund companies so,
the null hypothesis is rejected. So, the researcher may
conclude that there is significant difference between NAVs
of Reliance MFs and HDFC MFs.

77

0
1
2
3
4
5
6
7
8
9
10
1 2 3 4 5
A
N
N
U
A
L

R
E
T
U
R
N
S

NO. OF YEARS
LIQUID CASH
RELIANCE MF
HDFC MF























78


(3). MONTHLY INCOME PLAN

The investment objective of the schemes is to seek to
generate regular income in order to make regular dividend
payments to unit holders and the secondary objective is
growth of capital.

SR.NO YEAR RELIANCE MF

HDFC MF
1 2006 14.97 6.01
2 2007 8.49 10.06
3 2008 9.57 -3.73
4 2009 21.17 17.54
5 2010 8.74 6.73


TEST OF HYPOTHESIS
H0: There is no significant difference between annual
returns of Reliance Monthly Income Plan & HDFC
Monthly Income Plan during the period of study.

F-Test Two-Sample for Variances

Reliance
MF
HDFC MF
Mean 12.58 7.32
Variance 30. 59.03
Observations 5 5
Df 4 4
F 0.50
P(F<=f) one-tail 0.2
F Critical one-tail 6.38



79


ANOVA: Two-Factor Without Replication

SUMMARY Count Sum Average Variance
2006 2 20.98 10.49 40.14
2007 2 18.55 9.27 1.23
2008 2 5.84 2.92 88.44
2009 2 38.71 19.35 6.588
2010 2 15.47 7.73 2.02
Reliance
MF
5 62.94 12.58 30.
HDFC MF 5 36.61 7.32 59.03


ANOVA

Source of
Variation
SS Df MS F F crit
Years 287.05 4 71.76 4.15 6.3
MF Co. 69.32 1 69.32 4.01 7.70
Error 69.09 4 17.27
Total 425.48 9

INTERPRETATION:-

As the calculated value of F is smaller than the
critical value of F in case of years so, the null hypothesis
H0 is accepted. So the researcher may conclude that
there is no significant difference in NAVs of sample units
during the period of study.
As the calculated value of F is smaller than the
critical value of F in case of Mutual Fund companies so,
the null hypothesis is accepted. So, the researcher may
conclude that there is no significant difference between
NAVs of Reliance MFs and HDFC MFs.

80

-5
0
5
10
15
20
25
1 2 3 4 5
A
N
N
U
A
L

R
E
T
U
R
N
S

NO. OF YEARS
MONTHLY INCOME PLAN
RELIANCE MF
HDFC MF






















81



(4). SHORT TERM FUND

The primary investment objective e of the schemes is
to generate stable d returns for investors with a short
term investment horizon by investing in fixed income
securities of a short term maturity.

TEST OF HYPOTHESIS
H0: There is no significant difference between annual
returns of Reliance Monthly Income Plan & HDFC
Monthly Income Plan during the period of study.

SR. NO. YEAR RELIANCE MF HDFC MF
1 2006 6.96 6.24
2 2007 9.8 8.92
3 2008 12.14 13.37
4 2009 8.85 8.68
5 2010 5.02 5.06

1

F-Test Two-Sample for Variances

Reliance
MF
HDFC MF
Mean 8.55 8.45
Variance 7.38 10.21
Observations 5 5
Df 4 4
F 0.72
P(F<=f) one-tail 0.38
F Critical one-tail 6.38

82


ANOVA: Two-Factor Without Replication
SUMMARY Count Sum Average Variance
2006 2 13.2 6.6 0.25
2007 2 18.72 9.36 0.38
2008 2 25.51 12.75 0.75
2009 2 17.53 8.76 0.01
2010 2 10.08 5.04 0.
Reliance
MF
5 42.77 8.55 7.38
HDFC MF 5 42.27 8.45 10.21


ANOVA

Source
of
Variation
SS Df MS F F crit
Years 68.99 4 17.24 49.52 6.38
MF Co. 0.02 1 0.025 0.07 7.70
Error 1.39 4 0.34
Total 70.41 9

INTERPRETATION:-

As the calculated value of F is greater than the
critical value of F in case of years so, the null hypothesis
H0 is rejected. So the researcher may conclude that there
is significant difference in NAVs of sample units during
the period of study.
As the calculated value of F is smaller than the
critical value of F in case of Mutual Fund companies so,
the null hypothesis is accepted. So, the researcher may
conclude that there is no significant difference between
NAVs of Reliance MFs and HDFC MFs.

83

0
2
4
6
8
10
12
14
16
1 2 3 4 5
A
N
N
U
A
L
R
E
T
U
R
N
S


NO.OF YEARS
SHORT TERM FUND
RELIANCE MF
HDFC MF






















84


SUMMARY

This project report is on the subject of comparative
study of NAVS of Reliance Mutual Fund & HDFC Mutual
Fund. This is an effort to analyze which MF company
gives higher return, which funds are better for the
investors and also give the information of the yearly
performance of the fund return. This report also gives
information that there is difference between two mutual
fund companys return or not.
FUND NAME F F
Crit
Accepted
/Rejected
Equity Oriented Schemes
Equity Fund Years 16.63 6.38 Rejected
MF co. 4.58 7.7 Accepted

Tax Sever fund Years 169.79 6.38 Rejected
MF Co. 1.10 7.7 Accepted

Top 200 fund Years 18.64 6.38 Rejected
MF Co. 6.45 7.7 Accepted
Debt oriented Schemes

Income fund Years 18.39 6.38 Rejected
MF Co. 0.7 7.7 Accepted

Liquid Cash
Fund
Years 7.86 6.38 Rejected
MF Co. 9.01 7.7 Accepted

Short Term
Fund
Years 49.52 6.38 Rejected
MF Co. 0.07 7.7 Accepted

Monthly Income
Plan
Years 4.15 6.3 Accepted
MF Co. 4.01 7.7 Accepted


85

EQUITY ORIENTED SCHEMES
Study of the above table, I conclude that in
equity oriented schemes, the fund annual returns of all
the schemes there are more significance difference
between NAVS of sample unit during the year. So, it is
rejected. Here, when any investors think to invest their
money in equity oriented schemes they first see the
returns of all the equity schemes year wise and then
invest.
There are no significance differences between
NAVs of two mutual fund companies equity oriented
schemes. So, it is accepted. Here, investor can invest in
any mutual fund companies either RMF or HDFC MF
because there are no any differences between two mutual
fund companies return.

DEBT ORIENTED SCHEMES
In Debt oriented schemes, the fund returns of all
the schemes except Monthly Income Plan (MIP) there are
more significance difference between NAVS of sample unit
during the year. So, it is rejected. In MIP there are no
significance differences of sample unit during the study.
So, it is accepted. Here, when any investors think to invest
their money in debt oriented schemes they first see the
returns of all the debt schemes year wise and then invest.




86

There are no significance
differences between NAVs of two mutual fund companies
debt oriented schemes. So, it is accepted. Here, investor
can invest in any mutual fund companies either RMF or
HDFC MF because there are no any differences between
two mutual fund companies return.


























87


FINDINGS

From the one month experience of my research
project with Reliance Mutual Fund I have come to know a
lot of things & it has enhanced my knowledge to great
extent. I found so many good things, which are very well
for the company.

1 1. . In the year of 2010, annual return of Equity Fund
scheme in RMF is 0.28 while the annual return of
HDFC MF is 26.22. So, we can say that the return of
equity fund of HDFC MF is high in compare with RMF.

2 2. . In the year of 2010, annual return of Tax sever fund
scheme in RMF is 22.49 while the annual return of
HDFC MF is 26.43.so, we can say that the return of
HDFC MF is more in compare to RMF.


3 3. . In the year of 2010, annual return of Top 200 fund
scheme in RMF is 19.36 while the annual return of
HDFC MF is 26.43. So, we can say that the return of
Top 200 fund of HDFC is more than the RMF.

4 4. . In the year of 2010, annual return of Income fund
scheme in RMF is 4.21 while the annual return of
HDFC MF is 5.59. So, we can say that the return of
income fund of HDFC is more than the RMF.

88


5 5. . In the year of 2010, annual return of liquid cash
scheme in RMF is 4.4 while the annual return of HDFC
MF is 5.15. here the return of liquid cash of HDFC MF
is more than the RMF.


6 6. . In the year of 2010, annual return of Monthly income
Plan in RMF is 8.74 while the annual return of HDFC
MF is 6.73.here we can say that it is higher than the
HDFC MF.





















89



6.3 SUGGESTION

As the student of B.B.A. I would like to highlight
some weakness of the Reliance Mutual Fund. The Mutual
Fund Company could improve on the respective areas.
There seems to be lack of awareness among the
investors regarding the mutual fund schemes. They
have only knowledge of the other investment options
like fixed deposits, PPF and insurance. So, company
can aware about the mutual funds to the investors
through the advertisement.
In Reliance liquid cash plan the returns are lower than
the HDFC liquid cash plan in all years. So, I suggest
him to change the portfolio of the liquid cash plan.









90



6.4 SWOT ANALYSIS

1) STRENGTH

Reliance Industries Ltd. is the Indias largest private
sector company. They export their products in more than
100 countries.

2) WEAKNESS
When compared with equity shares the return on mutual
funds are less. This is because of the various changes that
the mutual funds have to conduct.

3) OPPOURTUNITIES
Many of the mutual fund companies are presently
functioning in the urban area, but in country like India
were the substation part of total population lives in the
rural area, also the mutual fund company needs to
expand their business in the unexplored rural area which
will lead to the substantial increase in the total amount
which is invested in mutual fund.

4) THREATS
Company is common threats for any industrial unit. In
this modern era, one cannot setup its monopoly in the
market.


91



CONCLUSION
After going through different kinds of useful
experience during my training. I feel very pleased to
conclude that it was very nice experience from both the
point that is knowledge as well as practical asking. It is
also help the student to improve their personality in long
life run.
At Reliance Mutual Fund we have almost all kind of
schemes by help- of which investors can invest according
to their choice from equity fund for which ideal time
horizon is 1 to 3 years and too different other debt
schemes where time horizon can be up to 1 week to 30
days.
The company is developed in many fields like power
sector, infrastructure sector, petroleum sector,
entertainment sector and mutual fund etc. so the scope of
the expansion of the company in future is very much.
They are helpful to society by providing employment and
development can be raised more and more and the
employment opportunities raised. So, I wish them by
heart.





92



BIBILOGRAPHY

Books.
-Arora P.N. & Arora S.-Statistics, S. Chand & Company
New Delhi.
-C.R.Kothari, Research Methodology, New Age Publication
(P) Ltd., New Delhi.

Fact sheets
Fact sheets of Reliance mutual fund

Other Material
Key information memorandum.


WEBLIOGRAPHY
www.reliancemutual.com
www.moneycontrol.com
www.valueresearch.com
www.mutualfundsindia.com