INTRODUCTION

INTRODUCTION

There are a lot of investment avenues available today in the financial market for an investor
with an invest able surplus. He can invest in Bank Deposits, Corporate Debentures, and
Bonds where there is low risk but low return. He may invest in Stock of companies where
the risk is high and the returns are also proportionately high. The recent trends in the Stock
Market have shown that an average retail investor always lost with periodic bearish tends.
People began opting for portfolio managers with expertise in stock markets who would
invest on their behalf. Thus we had wealth management services provided by many
institutions. However they proved too costly for a small investor. These investors have
found a good shelter with the mutual funds.

Like most developed and developing countries the mutual fund cult has been catching on
in India. The reasons for this interesting occurrence are:

1. Mutual funds make it easy and less costly for investors to satisfy their need for capital
growth, income and/or income preservation.

2. Mutual fund brings the benefits of diversification and money management to the
individual investor, providing a

Opportunity for financial success that was once available only to a select few.

HISTORY

Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act in 1963,
and started its operations in 1964 with the issue of units under the scheme US-641. In 1978
UTI was delinked from the RBI and Industrial Development Bank of India (IDBI) took
over the

Regulatory and administrative control in place of RBI.

In the year 1987 Public Sector banks like State Bank of India, Punjab National Bank,
Indian Bank, Bank of India, and Bank of Baroda have set up mutual funds.

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 Apart from these above mentioned banks Life Insurance Corporation [LIC] and General
Insurance Corporation [GIC] too have set up mutual fund. LIC established its mutual fund
in June 1989.while GIC had set up its mutual fund in December 1990.The mutual fund
industry had assest under management of Rs. 47,004 crores.

With the entry of Private Sector Funds a new era has started in Mutual Fund Industry
[e.g:- Principal Mutual Fund.]

Mutual Fund Regulations

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 Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of
assets under management and with the setting up of a UTI Mutual Fund, conforming to the
SEBI Mutual Fund Regulations, and with recent mergers taking place among different
private sector funds, the mutual fund industry has entered its current phase of consolidation
and growth. As at the end of September, 2004, there were 29 funds, which manage assets
of Rs.153108 crores under 421 schemes.

Types of MutualFunds Scheme in India

Wide variety of Mutual Fund Schemes exist to cater to the needs such as financial position,
risk tolerance and return expectations etc. The table below gives an overview into the
existing types of schemes in the Industry.

By Structure
o Open - Ended Schemes
o Close - Ended Schemes
o Interval Schemes

By Investment Objective
o Growth Schemes
o Income Schemes
o Balanced Schemes
o Money Market Schemes

Other Schemes
o Tax Saving Schemes
o Special Schemes

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 Index Schemes
Sector Specfic

ADVANTAGES OF MUTUAL FUNDS

There are numerous benefits of investing in mutual funds and one of the key reasons for
its phenomenal success in the developed markets like US and UK is the range of benefits
they offer, which are unmatched by most other investment avenues.

Diversification

The nuclear weapon in your arsenal for your fight against Risk. It simply means that
you must spread your investment across different securities (stocks, bonds, money market
instruments, real estate, fixed deposits etc.) and different sectors (auto, textile, information
technology etc.).

Tax Benefits

Any income distributed after March 31, 2002 will be subject to tax in the assessment of all
Unit holders. However, as a measure of concession to Unit holders of open-ended equity-
oriented funds, income distributions for the year ending March 31, 2003, will be taxed at a
concessional rate of 10.5%.

Regulations
Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly
defined rules, which govern mutual funds. These rules relate to the formation,
administration and management of mutual funds and also prescribe disclosure and
accounting requirements. Such a high level of regulation seeks to protect the interest of
investors

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Affordability
A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the
investment objective of the scheme. Azn investor can buy in to a portfolio of equities,
which would otherwise be extremely expensive.

Features related mutual funds

Reliance was the first fund house to launch sector funds with flexibility to invest in
a range of 0% to 100% in either equity or debt instruments.
Mutual fund investments linked to an ATM/debit card a Reliance innovation
Indias first long-short fund comes from Reliance Mutual Fund .
As at 31st May 2008, more than 6.6 million people had invested in Reliance Mutual
Fund;the investments comprised 16% of the countrys entire mutual fund.

5
COMPANY
PROFILE
OF
RELIANCE

6
RELIANCE INDUSTRIES LIMITED

7
 Reliance Group Holdings has grown from a small office data-
processing equipment firm in 1961 into a major insurance and financial-services group in
one generation under one chief.

Reliance's insurance operations constitute the nation's 27th-largest property

and casualty operation. The parent company also includes a development subsidiary in
commercial real estate. Reliance's international consulting group contains several
subsidiaries in energy, environment, and natural resources consulting. A financial arm
invests in other businesses, primarily television stations.

Reliance Insurance started as the Fire Association of Philadelphia in 1817, organized by

5 hose and 11 engine fire companies. It became the nation's first association of volunteer
fire departments.

Business got a boost as a result of the GreatChicago Fire of 1871.The association soon
developed a field of agents to write policies across the country. For the first two years,
shareholders received dividends twice a year of $5 a share, which increased gradually to
$10 in 1876.

In 1972, the Reliance insurance group divided its pool so that Reliance Insurance
Company and itssubsidiaries handled most standard lines, while United Pacific Insurance
Company handled the nonstandard and other operations.

In 1977, the company moved into real estate, forming Continental Cities
Corporation, which became Reliance Development Group, Inc. This division handled all
real estate operations of the parent company and other subsidiaries.

Reliance Capital Group, L.P. constituted the investment branch of the Reliance
conglomerate.

In December 1989, Reliance Capital sold its investment, Days Corporation, parent
company of Days Inn of America, the world's third-largest hotel chain; it had been
purchased in 1984.

Reliance Industries Limited. The Group's principal activity is to

produce and distribute plastic and intermediates, polyester filament yarn, fibre
intermediates, polymer intermediates, crackers, chemicals, textiles, oil and gas. The
refining segment includes production and marketing operations of the Petroleum refinery.
The petrochemicals segment includes production and marketing operations of
petrochemical products namely, High and Low density Polyethylene.

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"Growth has no limit at Reliance. I keep revising my vision.
Only when you can dream it, you can do it."

DhirubhaiAmbani founded Reliance as a textile company and led its evolution as a global
leader in the materials andenergy value chain businesses.

He is credited to have brought about the equity cult in India in the late seventies and is
regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn
to excel'.

The Reliance Group is a living testimony to his indomitable will, single-minded dedication
and an unrelenting commitment to his goals.

RELIANCE MUTUAL FUND

This groupdominates this key areain the financial sector..Thismegabusiness houses
show that it has assetsunder management ofRs. 90,938 crore(US$ 22.73 billion) andan
investor base of over6.6 million (Source:www.amfiindia.com).Reliances mutual
fundschemes are managed byReliance Capital AssetManagementLimitedRCAM), a
subsidiary of

Reliance Capital Limited,which holds 93.37% ofthe paid-up capitalof RCAM.

The company notchedup a healthy growth ofRs. 16,354 crore(US$ 4.09

billion)in assets under management in February2008 and helped propelthe total industry-

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wideAUM to Rs. 565,459 crore (US$ 141.36 billion)(Source: indiainvestments.com). A
sharp rise infixed maturity plans (FMPs) and collection ofRs. 7000 crore (US$ 1.75 billion)
through newfund offers (NFOs) created this surge. In AUrankings, Reliance continues to
be in thenumber one spot.

India's Best Offering: Reliance Mutual Fund

Investing has become global. Today, a lot of countries are waking up to the reality that in
order to gain financial growth, they must encourage their citizens to not only save but
also invest. Mutual funds are fast becoming the mode of investment in the world.

In India, a mutual fund company called the Reliance Mutual Fund is making waves.
Reliance is considered India's best when it comes to mutual funds. Its investors number to
4.6 billion people. Reliance Capital Asset Management Limited ranks in the top 3 of
India's banking companies and financial sector in terms of net value.

The Anil DhirubhaiAmbani Group owns Reliance; they are the fastest growing
investment company in India so far. To meet the erratic demand of the financial market,
Reliance Mutual Fund designed a distinct portfolio that is sure to please potential
investors. Reliance Capital Asset Management Limited manages RMF.

Vision And Mission

Reliance Mutual Fund is so popular because it is investor focused. They show their
dedication by continually dishing out innovative offerings and unparalleled service
initiatives. It is their goal to become respected globally for helping people achieve their
financial dreams through excellent organization governance and customer care. Reliance
Mutual fund wants a high performance environment that is geared at making investors
happy.

RMF aims to do business lawfully and without stepping on other people. They want to be
able to create portfolios that will ensure the liquidity of the investment of people in India
as well as abroad. Reliance Mutual Fund also wants to make sure that their shareholders
realize reasonable profit, by deploying funds wisely. Taking appropriate risks to reach the
company's potential is also one of Reliance Mutual Fund's objectives.

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Schemes

To make their packages more attractive, Reliance Mutual Fund created proposals called
The Equity/ Growth scheme, Debt/Income Scheme, and Sector Specific Scheme.

i. Debt/Income Scheme, and Sector Specific Scheme.

The Equity/ Growth scheme give medium to long term capital increase. The major
part of the investment is on equities and they have fairly high risks. The scheme
gives the investors varying options like, capital augmentation or dividend
preference. The choices are not deadlocked because if you want you may change
the options later on.

Providing steady and regular income is one of the Debt/Income Scheme's

primary goals. The Debt/Income scheme has in its portfolio government securities,
corporate debentures fixed income securities, and bonds. returns on Sector
Specific Scheme are dependent on the performance of the industry at which your
money is invested upon. Compared to diversified funds this is a lot more risky and
you will need to really give your time on observing the market.

Although RMF is gaining good ground in the financial market, remember that
they are a risk taking bunch. They give higher profit because they take a lot of risks.
So, if you are faint hearted, then Reliance Mutual Fund is not for you.

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CHAPTER-2
OBJECTIVES

12
 OBJECTIVE

To give a brief idea about the benefits available from mutual Fund investment.
To give an idea of the types of schemes available.
Explore the recent developments in the mutual funds in India
To give an idea about the regulations of mutual funds.
To analyze reliance mutual fund strategy against its competitor.

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 CHAPTER-3
RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

Research as a care full investigation or enquiry specially through search for a new facts in
any branch of knowledge

Research is an academic activity and such as the term should be used in technical
sense.The manipulation of things , concepts or symbols for the purpose of generalizing to
extend ,correct or verify knowledge ,whether that knowledge through objective.

TYPES OF RESEARCH

ANALYTICAL RESERCH
In this project work, analytical research is used. In this project has to use facts or
information .Already used available ,and analyze these to make a critical evolution of the
material.

METHODS OF DATA COLLECTION

In this project work primary and secondary data sources of data has been used.

Primary data: Primary data collect through observation ,or through direct
communication or doing experiments .

Secondary data:Secondary data means already available through books ,journals ,

magazines ,newspaper.

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 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

16
 DATA ANALYSIS AND INTERPRETATION

Q.1 Which banking mutual fund do you prefer for mutual

Fund ?

Co mpany Name Persentages of respondents

Reliance Money 25

HDFC 10

ICICI 15

25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION: 50% of respondent have Reliance Money , 30% of respondent says

that other%.

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Q.2 Which banking mutual fund offer you good investment plan?

Company Name Percentage of respondent

Reliance 22

HDFC 21

ICICI 7

25

20

15

10

0
RELIANCE HDFC ICICI

INTERPRETATION:

44% respondent for Reliance,32 %forHdfc,14% for ICICI

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Q.3 Which banking mutul fund offer a lot of tax saving?

Company Name Percentage of respondent

Reliance 20

HDFC 15

ICICI 15

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:

40% respondent for Reliance,30 %forHdfc,30% for ICICI

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Q.4 Which banking mutual fund offer you a large number of product & services?

Company Name Percentage of respondent

Reliance 18

HDFC 16

ICICI 16

18

17.5

17

16.5

16

15.5

15
Reliance HDFC ICICI

INTERPRETATION:

36% respondent for Reliance,32%forHdfc,32% for ICICI

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Q.5 Which banking mutual fund offer you a good e-mail facility ?

Company Name Percentage of respondent

Reliance 22

HDFC 15

ICICI 13

25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:

44% respondent for Reliance,30%forHdfc,26% for ICICI

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Represent by pie chart

ICICI
29%
Reliance
41%

HDFC
30%

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OBSERVATION

50% of respondent have Reliance Money , 30% of respondent says that other%.

44% respondent for Reliance,32 %forHdfc,14% for ICICI.

40% respondent for Reliance,30 %forHdfc,30% for ICICI.

36% respondent for Reliance,32%forHdfc,32% for ICICI.

44% respondent for Reliance,30%forHdfc,26% for ICICI.

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CHAPTER-5
LIMITATIOS

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 Limitations

The time constraint was one of the major problems.

The study is limited to the different schemes available under the mutual funds
selected.
The study is limited to selected mutual fund schemes.
The lack of information sources for the analysis part.

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CHAPTER-6
FINDINGS

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 FINDINGS

In Equity Schemes we have taken Reliance Vison Fund and Reliance growth Fund . Both
schemes are open ended but Reliance Growth fund is more valuable for Reliance Mutual
Fund than reliance vision Fund.

In Dedtscheme we have taken Reliance money Manager Fund and Reliance Liquidty Fund
.In it boths schemes are open ended but reliance money manager is more beneficial for
reliance mutual fund .

In sector specific scheme we have taken Reliance media and entertainment fund and
Reliance Pharma fund scheme both is more efficient for Reliance Mutual Fund.

Above all the schemes of Reliance Mutual Fund Debt schemes are best schemes for Mutual
Fund .There is a Good investment plan and saving scheme in reliance Mutual Fund.

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CHAPTER-7
SUGGESTIONS

28
 SUGGESTION

Reliance Money have to add some extra features in it with aggressive marketing
promotional strategy.
Advertisement on television is the main source of attraction so the company must
advertise its products heavily.
Product must be improved .
There should be provision of complain suggestion boxes at each branch.

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CHAPTER-8
CONCLUSION

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 CONCLUSION

Mutual Fund investment is better than other raising fund .

Reliance Mutual Fund have good returns in investment .

A good brand is always welcomed over here people are more aware and conscious for the
brand so they go for they are ready to spend some extra bucks for the quality .

At last all con be concluded by that Reliance Money is still growing industry in India and
is still exploring its potential and prospects in here.

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CHAPTER-9
BIBLOGRAPHY

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 BIBLIOGRAPHY

1. Websites:

www.reliancemoney.com
www.hdfc.com
www.icicidirect.com

2. Referencebooks:

FINANCIAL INSTITUTIONS AND MARKETS - L.M.BHOLE

INVESTMENT MANAGEMENT - V.K.BHALLA
Research Methodology - Kothari

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 QUESTIONNAIR

Q.1 Which banking mutual fund do you prefer for mutual

Fund ?

Reliance Money
HDFC
ICICI

Q.2 Which banking mutual fund offer you good investment plan?

Reliance Money
HDFC
ICICI

Q.3 Which banking mutul fund offer a lot of tax saving?

Reliance Money
HDFC
ICICI

Q.4 Which banking mutual fund offer you a large number of product & services?

Reliance Money
HDFC
ICICI

Q.5 Which banking mutual fund offer you a good e-mail facility ?

Reliance Money
HDFC
ICICI

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