Summer Training Report

DECLARATION

I hereby declare that this Project Report titled “Analytical Comparison Of

Instruments Of Reliance Mutual Fund Ltd and instruments of Reliance Life
Insurance Ltd” submitted by me to ANSAL INSTITUTE OF TECHNOLOGY,
GURGAON is a bonafide work undertaken during the period from 27 MAY 2010 to
31 JULY 2010 by me and has not been submitted to any other University or Institution
.for the award of any degree diploma / certificate or published any time before

(Signature of the Student)

Name: vishavdeep singh thakur
Enroll no.0461061808

1
 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled “ANALYTICAL
COMPARISON OF INSTRUMENTS OF RELIANCE MUTUAL FUND LTD AND
INSTRUMENTS OF RELIANCE LIFE INSURANCE LTD” is the bonafide research
work carried out by vishavdeep singh thakur student of BBA (BNI), AIT,
GURGAON, during June-July 2010, in partial fulfillment of the requirements for the
Summer Training Project.

He has worked under my guidance.

--------------------
Mr. Navdeep Barwal
(Project Guide (Internal
:Date

2
 ACKNOWLEDGEMENT

I would like to take this opportunity to thank Mr. Navdeep Barwal, who poured over
every inch of my project with painstaking attention and helped me throughout the
working of the project. I also acknowledge my deepest sense of gratitude to Karan
Bhasin, CDA, Reliance Life Insurance Limited for his guidance and support which
has helped me immensely. The project could not have taken its present form sans their
endeavor and numerous suggestions. I am extremely grateful to them for all their
support and encouragement in the preparation of the project.

Vishavdeep Singh Thakur

En. No.-0461061808

Index

3
S.No. Contents Page No.

Executive Summary

Chapter-1
1.1 Introduction 08

1.2 Objective of the Study 22

1.3 Scope of the Study 23

Chapter-2
2.1 Literature review 24

Chapter-3

3.1 Research methodology 37

Chapter-4
4.1 Data analysis & interpretations 41

Chapter-5

5.1 Finding & conclusion 62

5.2 Limitation of the Study 65

Chapter-6

6.1 bibliography 66

EXECUTIVE SUMMARY

4
Investment decision deals with the selection of appropriate securities for the portfolio.
For the purpose of investment decision making it is necessary to analyze the financial
instruments that are available to the investor. Financial instruments that are available
in India include Mutual funds, life insurance, equity shares, bonds and debentures,
derivatives, CDs etc.The investor can choose from any scheme under these
instruments to design his portfolio. Reliance mutual fund ltd and Reliance life
insurance ltd provide various instruments that serve as good investment option.
This report is based on the comparative analysis of Instruments of Reliance
Mutual fund ltd and Reliance Life Insurance ltd.
The study is based on secondary data. The main objective is to analyze the financial
instruments provided by of Reliance Mutual fund ltd and Reliance Life Insurance ltd.
For analysis of financial instruments, secondary data is used. The study has been
exploratory as it aims at examining the secondary data for analyzing the previous
researches that have been done in the area of comparative analysis of financial
instruments. The knowledge thus gained from this preliminary study forms the basis
for the further detailed Descriptive research. In the exploratory study, the various
technical indicators that are important for analyzing financial instruments were
actually identified and important ones short listed.
The analysis includes the detailed description of the instruments, their features. These
instruments are analyzed on the basis of risk involved, return expected, performance
and growth perspective. Statistical tools used for performance evaluation and risk
assessment are beta, standard deviation, Jensen measure, Treynor’s Ratio and
Sharpe Ratio.

Various schemes analyzed in the study include the following:

Reliance Mutual fund ltd:-

• Reliance Vision Fund
• Reliance Growth Fund
• Reliance Equity Fund
• Reliance Tax Saver Fund
Reliance Life Insurance ltd:-
• Reliance Diversified Power Sector

5
 • Reliance Diversified Power Sector - Inst (G)

• Equity Fund

• Balanced Fund

• Capital Secure Fund

The performance of a portfolio is measured by combining the risk and return levels
with single value. The differential return earned by a portfolio may be due to the
difference in the risk exposure from that of say, the stock exchange. The difference
between the required rate of return on a mutual fund investment and the risk free rate
is the risk premium.

6
 CHAPTER: 1

INTRODUCTION

This Chapter gives an introduction, objective & literature

review of project.

1.1INTRODUCTION

7
A financial instrument is either cash; evidence of an ownership interest in an entity;
or a contractual right to receive, or deliver, cash or another financial instrument.
Financial instruments can be categorized by form depending on whether they are cash
instruments or derivative instruments:

• Cash instruments are financial instruments whose value is determined

directly by markets. They can be divided into securities, which are readily
transferable, and other cash instruments such as loans and deposits, where both
borrower and lender have to agree on a transfer.
• Derivative instruments are financial instruments which derive their value
from the value and characteristics of one or more underlying assets. They can
be divided into exchange-traded derivatives and over-the-counter (OTC)
derivatives.

Alternatively, financial instruments can be categorized by "asset class" depending on

whether they are equity based (reflecting ownership of the issuing entity) or debt
based (reflecting a loan the investor has made to the issuing entity). If it is debt, it can
be further categorized into short term (less than one year) or long term.

This study is based on the comparative analysis of these financial instruments on

the basis of their performance, growth, risk involved, and return and investment
period.

8
MUTUAL FUNDS

Mutual fund is a pool of money from many investors who wish to save or make
money. Investing in mutual funds can be a lot easier as compared to buying and
selling individual stocks or bonds on your own. An investor can redeem his/her
holdings partially or fully at any point of time and collect the proceedings on a t +2
basis.

The basic idea behind Mutual Fund is that investors lack time, the inclination and
skills required to manage their own investments. Professional Mutual Fund managers
are highly experienced personnel and act on behalf of the mutual fund company that
manages the investments for the benefit of the investors in return of a management
fees.

The organization that manages the investment is known as Asset Management

Company [AMC].In India, operations of AMC are supervised and regulated by the
Securities and Exchange Board of India (SEBI).

9
Tax benefits available by investing in mutual funds

From April 1, 2003 onwards, all dividends, declared by the debt-oriented mutual funds
(mutual funds with less than 50% of assets in equities), are tax-free in hands of the
investor.

The mutual fund has to pay a dividend distribution tax of 12.5% (that includes
surcharge on the dividends declared by the fund. Long-term debt funds, monthly
income plans (MIPs), government securities funds (G-sec/gilt funds), are some
examples of debt-oriented funds.

Dividends that are declared by equity-oriented funds (mutual funds with more than
50% investment of assets in equities) are tax-free in the hands of investor. Also, no
dividend distribution tax is applicable on these funds u/s 115R. Sector funds, balanced
funds and diversified equity funds, are examples of equity-oriented funds.

The amount invested in tax-saving funds such as Equity linked savings schemes
(ELSS) is eligible for deduction u/s 80C; but the aggregate amount deductible under
this section cannot exceed Rs 100,000.

TYPES OF MUTUAL FUNDS IN INDIA

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial
position, risk tolerance and return expectations etc. The existing types of schemes in
the Industry are:

• Mutual Fund Scheme By Structure

• Mutual Fund Scheme By Investment Objective
• Mutual Fund Scheme Other Schemes

10
Mutual Fund Scheme by Structure

• Open-end Funds:

An open-end fund is one that is available for subscription all through the year.
These do not have a fixed maturity. Investors can conveniently buy and sell
units at Net Asset Value (''NAV'') related prices. The key feature of open-end
schemes is liquidity.

• Closed-end Funds:

A closed-end fund has a stipulated maturity period which generally ranging

from 3 to 15 years. The fund is open for subscription only during a specified
period. 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 they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to
the Mutual Fund through periodic repurchase at NAV related prices. SEBI
Regulations stipulate that at least one of the two exit routes is provided to the
investor.

• Interval Funds:

Interval funds combine the features of open-ended and close-ended schemes.

They are open for sale or redemption during pre-determined intervals at NAV
related prices.

11
Mutual Fund Scheme by Investment Objective

• Growth Funds:

The aim of growth funds is to provide capital appreciation over the medium to
long term. Such schemes normally invest a majority of their corpus in equities.
It has been proved that returns from stocks, have outperformed most other kind
of investments held over the long term. Growth schemes are ideal for investors
having a long term outlook seeking growth over a period of time.

• Income Funds:

The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds,
corporate debentures and Government securities. Income Funds are ideal for
capital stability and regular income.

• Balanced Funds:

The aim of balanced funds is to provide both growth and regular income. Such
schemes periodically distribute a part of their earning and invest both in
equities and fixed income securities in the proportion indicated in their offer
documents. In a rising stock market, the NAV of these schemes may not
normally keep pace, or fall equally when the market falls. These are ideal for
investors looking for a combination of income and moderate growth.

• Money Market Funds:

The aim of money market funds is to provide easy liquidity, preservation of

capital and moderate income. These schemes generally invest in safer short-
term instruments such as treasury bills, certificates of deposit, commercial
paper and inter-bank call money. Returns on these schemes may fluctuate
depending upon the interest rates prevailing in the market. These are ideal for
Corporate and individual investors as a means to park their surplus funds for
short periods.

12
Other Schemes:

Tax Saving Schemes:

These schemes offer tax rebates to the investors under specific provisions of the Indian
Income Tax laws as the Government offers tax incentives for investment in specified
avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension
Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also
provides opportunities to investors to save capital gains u/s 54EA and 54EB by
investing in Mutual Funds.

Special Schemes

• Industry Specific Schemes: Industry Specific Schemes invest only in the

industries specified in the offer document. The investment of these funds is
limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc.
• Index Schemes: Index Funds attempt to replicate the performance of a
particular index such as the BSE Sensex or the NSE 50
• Sectoral Schemes: Sectoral Funds are those which invest exclusively in a
specified sector. This could be an industry or a group of industries or various
segments such as 'A' Group shares or initial public offerings.

Benefits of Investment In Mutual Funds

Mutual Funds offer several benefits to an investor that unmatched by the other
investment options. The major benefits are good post-tax returns and reasonable
safety, the other benefits in investing in Mutual Funds are

• Professional Management:

Mutual Funds provide the services of experienced and skilled professionals,

backed by a dedicated investment research team that analyses the performance
and prospects of companies and selects suitable investments to achieve the
objectives of the scheme.

13
• Diversification:

The best mutual funds design their portfolios so individual investments will
react differently to the same economic conditions. For example, economic
conditions like a rise in interest rates may cause certain securities in a
diversified portfolio to decrease in value. Other securities in the portfolio will
respond to the same economic conditions by increasing in value. When a
portfolio is balanced in this way, the value of the overall portfolio should
gradually increase over time, even if some securities lose value.

• Convenient Administration:

Investing in a Mutual Fund reduces paperwork and helps you avoid many
problems such as bad deliveries, delayed payments and follow up with brokers
and companies. Mutual Funds save your time and make investing easy and
convenient.

• Potential Return:

Mutual Funds have the potential to provide a higher return to an investor than
any other option over a reasonable period of time.

• Liquidity:

In open-end schemes, the investor gets the money back promptly at net asset
value related prices from the Mutual Fund. In closed-end schemes, the units
can be sold on a stock exchange at the prevailing market price or the investor
can avail of the facility of direct repurchase at NAV related prices by the
Mutual Fund.

• Low Costs:

Mutual fund expenses are often no more than 1.5 percent of your investment.
Expenses for Index Funds are less than that, because index funds are not
actively managed. Instead, they automatically buy stock in companies that are
listed on a specific index.

14
• Flexibility:

Investment in Mutual Funds offers a lot of flexibility with features of schemes

such as regular investment plan, regular withdrawal plans and dividend
reinvestment plans enabling systematic investment or withdrawal of funds.

• Affordability:

Small investors with low investment fund are unable to high-grade or blue chip
stocks. An investor through Mutual Funds can be benefited from a portfolio
including of high priced stock.

• Transparency:

You get regular information on the value of your investment in addition to

disclosure on the specific investments made by your scheme, the proportion
invested in each class of assets and the fund manager's investment strategy and
outlook.

• Well regulated:

All Mutual Funds are registered with SEBI and they function within the
provisions of strict regulations designed to protect the interests of investors.
The operations of Mutual Funds are regularly monitored by SEBI.

15
Disadvantages

Risks and Costs:

Changing market conditions can create fluctuations in the value of a mutual fund
investment. There are fees and expenses associated with investing in mutual funds that
do not usually occur when purchasing individual securities directly.

As with any type of investment, there are drawbacks associated with mutual funds.

• No Guarantees: The value of your mutual fund investment, unlike a bank

deposit, could fall and be worth less than the principle initially invested. And,
while a money market fund seeks a stable share price, its yield fluctuates,
unlike a certificate of deposit.
• The Diversification "Penalty" : Diversification can help to reduce your risk
of loss from holding a single security, but it limits your potential for a "home
run" if a single security increases dramatically in value. Remember, too, that
diversification does not protect you from an overall decline in the market.

16
LIFE INSURANCE

Life insurance is a contract between the policy owner and the insurer, where the
insurer agrees to pay a sum of money upon the occurrence of the insured
individual's or individuals' death.

In return, the policy owner (or policy payer) agrees to pay a stipulated amount called
a premium at regular intervals or in lump sums (so-called "paid up" insurance). There
may be designs in some countries where: (Assets, Bills, and death expenses plus
catering for after funeral expenses should be included in Policy Premium. Anyone
whose assets equal more than the value of their primary residence should not be
compensated beyond that value in case they cannot sell their house.

As with most insurance policies, life insurance is a contract between the insurer and
the policy owner (policyholder) whereby a benefit is paid to the designated
Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the
policy. To be a life policy the insured event must be based upon life (or lives) of the
people named in the policy. Insured events that may be covered include:

• death
• accidental death
• sickness

17
Life Insurance in India

Life insurance made its debut in India well over 100 years ago. Its salient features are
not as widely understood in our country as they ought to be. What follows is an
attempt to acquaint readers with some of the concepts of life insurance, with special
reference to life insurance. It should, however, be clearly understood that the
following narration is by no means an exhaustive description of the terms and
conditions of a life insurance policy or its benefits or privileges. For more details,
please contact our Branch or Divisional Office. Any life insurance Agent will be glad
to help you choose the life insurance plan to meet your needs and render policy
servicing.

Life Insurance sector is the fastest growing sector in India since 2000 when the
Government allowed Private players and FDI [Foreign Direct Investment] up to 26%.
Life Insurance in India was nationalized by incorporating Life Insurance Corporation
(LIC) in 1956. All private life insurance companies at that time were taken over by
LIC.

In 2000, the legislation amending the Insurance Act of 1938 and legislating the
Insurance Regulatory and Development Authority Act of 2000 was passed, where in
the newly appointed insurance regulator - Insurance Regulatory and Development
Authority [IRDA] started to issue licenses to private life insurers.

Key Features of Life Insurance:

18
1) Nomination: -
When one makes a nomination, as the policyholder you continue to be the owner of
the policy and the nominee does not have any right under the policy so long as you are
alive. The nominee has only the right to receive the policy monies in case of your
death within the term of the policy.

2) Assignment: -
If your intention is that your policy monies should go only to a particular person, you
need to assign the policy in favor of that person.

3) Death Benefit: -
The primary feature of a life insurance policy is the death benefit it provides.
Permanent policies provide a death benefit that is guaranteed for the life of the
insured, provided the premiums have been paid and the policy has not been
surrendered.

4) Cash Value: -
The cash value of a permanent life insurance policy is accumulated throughout the life
of the policy. It equals the amount a policy owner would receive, after any applicable
surrender charges, if the policy were surrendered before the insured's death.

5) Dividends: -
Many life insurance companies issue life insurance policies that entitle the policy
owner to share in the company's divisible surplus.

6) Paid-Up Additions: -
Dividends paid to a policy owner of a participating policy can be used in numerous
ways, one of which is toward the purchase of additional coverage, called paid-up
additions.

7) Policy Loans: -

19
Some life insurance policies allow a policy owner to apply for a loan against the value
of their policy. Either a fixed or variable rate of interest is charged. This feature allows
the policy owner an easily accessible loan in times of need or opportunity.

8) Conversion from Term to Permanent: -

When in need of temporary protection, individuals often purchase term life insurance.
If one owns a term policy, sometimes a provision is available that will allow her to
convert her policy to a permanent one without providing additional proof of
insurability.

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life
Insurance policy at an additional cost. It guarantees that coverage will stay in force
and continue to grow

20
BENEFITS OF LIFE INSURANCE OVER OTHER FINANCIAL
INSTRUMENTS:

• Protection
Savings through life insurance guarantee full protection against risk of death of
the saver. Also, in case of demise, life insurance assures payment of the entire
amount assured (with bonuses wherever applicable) whereas in other savings
schemes, only the amount saved (with interest) is payable.

• Aid to threat
Life insurance encourages 'thrift'. It allows long-term savings since payments
can be made effortlessly because of the 'easy installment' facility built into the
scheme. (Premium payment for insurance is either monthly, quarterly, half
yearly or yearly).

• Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any
policy that has acquired loan value. Besides, a life insurance policy is also
generally accepted as security, even for a commercial loan.

• Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and
wealth tax. This is available for amounts paid by way of premium for life
insurance subject to income tax rates in force.

Assesses can also avail of provisions in the law for tax relief. In such cases the
assured in effect pays a lower premium for insurance than otherwise.

21
 1.2OBJECTIVES

Primary Objective:

 Analytical comparison of instruments of Reliance Mutual Fund Ltd

and instruments of Reliance Life Insurance Ltd.

Sub-Objectives:

 To study the performance and growth of the instruments offered by

Reliance Life Insurance Limited.

 To study the performance and growth of the instruments offered by

Reliance Mutual Fund Limited.

22
 1.3 SCOPE OF THE STUDY
RLI Ltd is going through an expansion process under which a lot of new branches are
being introduced across the country. A lot of research work is also going on side by
side at various levels to provide a feed back for the formulation of new policies as well
evaluate the achievements. The present research project is also a part of this research
to see how successful are the efforts which are made by the company to make RLI Ltd
popular among the Mass. This study focuses on the analytical comparison of mutual
fund and life insurance instruments offered by Reliance to draw conclusions about the
performance of life insurance as compared to mutual fund instruments.

23
 Chapter-2
LITERATURE REVIEW

2.1 LITERATURE REVIEW

24
Sahadevan and Thiripalraju, in their research paper titled “Mutual Funds - Data
Interpretations And Analysis” (1997), analyzed the performance of private sector
funds they compiled and analyzed the monthly average return and standard deviation
of 10-selected private sector funds. The investigation reveals that in terms of the rate
of return, 5 funds viz., Alliance 95, ICICI Power, Kothari Prima, Kothari Pioneer Blue
Chip and Morgan Stanley Growth Fund outperformed the market, during the period of
comparison. The analysis also shows that, by and large, performance of a fund is not
closely associated with its size.

Gupta & Sehgal, in their research paper “Investment Performance of Mutual Funds:
The Indian Experience” (1998), tried to find out the investment performance of 80
schemes managed by 25 mutual funds, 15 in private sector and 10 in public sector for
the time period of June 1992-1996. The study has examined the performance in terms
of fund diversification and consistency of performance. The paper concludes that
mutual fund industry’s portfolio diversification has performed well. But it supported
the consistency of performance.

Turan and Bodla, in the paper “Performance Appraisal of Mutual funds” (2001)
examined the growth of mutual funds in India in terms of resource mobilization,
promotion of various types of schemes and NAV based risk and return. The study
reveals that mutual fund industry has registered a sharp rise in term of resource
mobilization during the period 1990-1991 to 1997- 1998.

Matthew and Hrishikesh, in their paper named “Estimation Risk in Mutual Fund
Ratings: The Case of Morningstar” (May 17, 2001) examined estimation risk in the
well-known Morningstar mutual fund star rating system. As a result, investors can be
somewhat less confident that the ratings of young funds are truly what they are
estimated to be.

Shanmugham (2000) conducted a survey of 201 individual investors to study the

information sourcing by investors, their perceptions of various investment strategy
dimensions and the factors motivating share investment decisions, and reports that

25
among the various factors, psychological and sociological factors dominated the
economic factors in share investment decisions.

Madhusudhan V Jambodekar (1996) conducted a study to assess the awareness of

MFs among investors, to identify the information sources influencing the buying
decision and the factors influencing the choice of a particular fund. The study reveals
among other things that Income Schemes and Open Ended. Schemes are more
preferred than Growth Schemes and Close Ended Schemes during the then prevalent
market conditions. Investors look for safety of Principal, Liquidity and Capital
appreciation in the order of importance;
Newspapers and Magazines are the first source of information through which investors
get to know about MFs/Schemes and investor service is a major differentiating factor
in the selection of Mutual Fund Schemes.

Sujit Sikidar and Amrit Pal Singh (1996) carried out a survey with an objective
to understand the behavioural aspects of the investors of the North Eastern region
towards equity and mutual funds investment portfolio. The survey revealed that the
salaried and self employed formed the major investors in mutural fund primarily due
to tax concessions. UTI and SBI schemes were popular in that part of the country then
and other funds had not proved to be a big hit during the time when survey was done.

26
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd.of the
Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading
private sector financial services companies, and ranks among the top 3 private sector
financial services and banking companies, in terms of net worth. Reliance Capital has
interests in asset management and mutual funds, stock broking, life and general
insurance, proprietary investments, private equity and other activities in financial
services.Reliance Capital Limited (RCL) is a Non-Banking Financial Company
(NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve
Bank of India Act, 1934. Reliance Capital sees immense potential in the rapidly
growing financial services sector in India and aims to become a dominant player in
this industry and offer fully integrated financial services. Reliance Life Insurance is
another steps forward for Reliance Capital Limited to offer need based Life Insurance
solutions to individuals and Corporate.

RELIANCE LIFE INSURANCE LTD: A PART OF RELIANCE CAPITAN

GROUP HOLDINGS

27
HISTORY

28
Reliance Capital Limited announced the launch of its life insurance business on
February 1, 2006. This was after obtaining the required regulatory approvals from the
Registrar Of Companies and the Insurance Regulatory and Development Authority.

It was in August 2005 that the ball was set rolling when Reliance Capital Limited, the
financial arm of Reliance – Anil Dhirubhai Ambani Group (ADAG) – announced the
requisition of 100% shareholding in AMP anmar Life Insurance Company Limited;
and the formal transfer of shares took place in October 2005. The company will issue
all policy contracts under the Reliance Life Insurance Company limited name. All the
existing policy contracts also stand transferred to the Reliance Life Insurance entity
with all the original contractual terms and commitments intact.

JOURNEY SO FAR
�2005
August: Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100
percent shareholding in AMP Sanmar Life Insurance Co Ltd.
� 2006
January 17: Mr. Nandgopal participates in a one-day conference on ‘Optimising
growth opportunities through Distribution Matrix: ‘Emerging Bancassurance’
organized by the Asia Insurance Post at the Taj President, Mumbai.
February 1: Rliance Life Insurance officially launched.
February 16, 17, 18: Strategy meet at the Reliance Management Institute. Amongst
those who participate are the CEO, COO, Functional Heads, Regional Managers and
Regional Sales Managers.
February 26: A Puja held at the Churchgate office situated in Express Building, 4th
Floor, 14 ‘E’ Road, Mumbai.
March 1: Churchgate office inaugurated by Mr. Amitabh Jhunjhunwala, Mr. Amitabh
Chaturvedi and Mr. Nandgopal.
March 6: Shifting to the new premises at Churchgate commences.
March 7: The new office at Chennai, at the Trapezium, First Floor, # 39, Nelson
Manickam Road, inaugurated by their CEO Mr. Nandgopal, Mr. KV Srinivasan and
Mr. Sureshbabu also graced the occasion.

29
MISSION

The mission of Reliance Life Insurance Company Limited is to be the best in every
sphere- business results, customer care and employee focus. The aim of the company
is to Think Bigger and Think Better.

CORE VALUES

Reliance Life Insurance Company Limited has some core values which are listed as
follows:

1) Result Oriented

2) Performance Driven

3) Customer Focused

4) Learning and Development Oriented

5) Employee Centric

6) Informal and Fun

30
MARKET SHARE OF RIL Ltd IN INSURANCE SECTOR

INSURANCE COMPANIES MARKET SHARE

LIC 79
SBI 4
ICICI 6
BIRLA 2
RLI 3
BHRT I AXA 2
OTHE RS 6

MARKET SHARES

LIC
SBI
ICICI
BIRLA
RLI
BH AXA
OTHERS

31
Achievements

• 3rd largest private player in a span of just 4 years, moved from 11th position
to 3rd

• Amongst the fastest growing Companies for 4 years in a row

• Continuous increase in market share over 4 years; from 1.9% in 2005-06 to

10.26% in 2009 -10

• RLIC has achieved a growth rate of 21% while the private industry has grown
at 13%

• Fastest to reach the 5 million policy mark

• Largest private insurer in terms of policy count in 2009-10

• 1145 branches 1,95,000 Advisors and over 16,000 employees

• RLIC continues to be amongst the foremost Life Insurance companies in India

to be certified ISO 9001:2000 for all the processes.

• Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of

Merit in the Financial Services category by Council for Fair Business
Practices (CFBP).

• The Company has also won the DL Shah Quality Council of India
Commendation Award in the services category in feb 2008 for its work on
promoting 'self help channels for service'

32
PRODUCT MIX

Protection Plans

In today’s uncertain world, there could be calamity at every step of the life. It is up to
you to ensure that your family stays protected always. Reliance Protection Plans helps
you do exactly the same. You have a wide range of options to choose a plan from.
Right from limited period plans to lifetime protection plans, you can opt for the one
that suits your lifestyle. While we understand that nothing can compensate for the loss
of a life, we intend to provide you the peace of mind. Investing in Reliance Protection
Plans would mean your family’s future is in safe hands.

Reliance Term Plan

Invest in the Reliance Term Plan, a pure life insurance plan that offers you
comprehensive and affordable coverage for a limited period of time to suit your needs

Reliance Term Plan

Invest in the Reliance Term Plan, a pure life insurance plan that offers you
comprehensive and affordable coverage for a limited period of time to suit your needs.

Reliance Special Term Plan

Imagine a life insurance policy, which on maturity returns to you all the premiums you

33
had paid for your basic policy. The Reliance Special Term Plan offers that and much
more.

Reliance Endowment Plan

The Reliance Endowment Plan gives you financial independence by allowing you to
decide the amount of Sum Assured based on your current financial position and
expected future expenses.

Savings & Investment Plans

In life, you have always given your family whatever they have wanted. Yet, there are
some promises you have to fulfill, such as taking your family for a vacation, or buying
that dream house.

Set aside some money to achieve these specific goals with the help of Reliance
Savings & Investment Plans. The plan allows you to experience the joys of life and
provide for your family’s needs.

Reliance Life Insurance Highest NAV Advantage Plan

Reliance Life Insurance Highest NAV Advantage Plan not only provides insurance
protection but also introduces certainty to your investments.

Reliance Life Insurance Classic Plan

To keep pace in the race of life where financial planning is one of the key
requirements, it is imperative that you move fast and act smart.

Reliance Life Traditional Golden Years Plan

Retirement means different things to different people, while some want to relax and
take a trip around the world, some want to start up a venture of their own, and pursue a
dream harnessed for years.

FUTURE PLANS

34
 • Forty-four new branches to be opened across the country in the coming
months; and a pan India presence with 162 branches in the coming year.

• A state-of-the-art customer care centre will provide continuous, responsive

services to the caller and promptly address queries, collate feedback and
suggestions from the caller, who may be both prospective and existing
clientele and from channel partners in Chennai and Mumbai.

• It will be launching additional products aimed at providing unparalleled

service to its valued clientele.

SWOT ANALYSIS OF RIL LTD

35
:Strengths of RIL Ltd

.A part of Reliance Capital Group holdings 

Third Largest Insurance Company and broad customer portfolio across the 
.country
.Excellent track record of performance in project implementation 
.Diversified thermal generation portfolio – multiple sizes and fuel types 
.Highly skilled and experienced human resources 
.High brand equity among shareholders 
.Strong balance sheet – ability to raise low cost debt 
.Brand value is good 
Weakness

 Marketing strategies are not appropriate and lack target marketing.

.Hierarchy for decision making that affects responsiveness 
.Poor penetration in rural areas 
Opportunities

Expand to rural areas 

.Enter into banking services i.e. backward integration 

Threats

.Strong position of LIC 

New insurance companies entering in the market 
.Changing norms of IRDA 

36
 Chapter-3

RESEARCH METHODOLOGY

37
 3.1 RESEARCH METHODOLOGY

The project ‘Comparative Analysis of Instruments of Reliance Mutual Fund Ltd

and Instruments of Reliance Life Insurance Ltd’ is a descriptive as well as
analytical study.

 It is descriptive research in the sense as it involves describing

about the instruments of Reliance Mutual Fund Ltd and
instruments of Reliance Life Insurance Ltd
 It is analytical research in the sense that the data from
environment and performance of the instruments is used to draw
important conclusions for the comparative analysis.

Project is based on secondary data. Project is mainly focused on the detail study of
.the Financial Instruments

Data collection:

Data has been largely collected from secondary sources like – websites of Reliance
mutual fund, Reliance life insurance, Reliance money, annual reports, business
newspapers, and financial text etc.

Data Analysis: The data collected from various sources is edited, tabulated and
analyzed using various techniques like beta, sharpe ratio, standard deviation, trenyor
.ratio and Jensen Measure using MS EXCEL

38
TOOLS USED FOR ANALYSIS

The Treynor Measure

Developed by Jack Treynor, this performance measure evaluates funds on the basis of
Treynor's Index. This Index is a ratio of return generated by the fund over and above
risk free rate of return (generally taken to be the return on securities backed by the
government, as there is no credit risk associated), during a given period and systematic
risk associated with it (beta). Symbolically, it can be represented as:

Treynor's Index (Ti) = (Ri - Rf)/Bi.

Where, Ri represents return on fund, Rf is risk free rate of return and Bi is beta of the
fund.

All risk-averse investors would like to maximize this value. While a high and positive
Treynor's Index shows a superior risk-adjusted performance of a fund, a low and
negative Treynor's Index is an indication of unfavorable performance.

The Sharpe Measure

In this model, performance of a fund is evaluated on the basis of Sharpe Ratio, which
is a ratio of returns generated by the fund over and above risk free rate of return and
the total risk associated with it. According to Sharpe, it is the total risk of the fund that
the investors are concerned about. So, the model evaluates funds on the basis of
reward per unit of total risk. Symbolically, it can be written as:

Sharpe Index (Si) = (Ri - Rf)/Si

Where, Si is standard deviation of the fund.

While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of
a fund, a low and negative Sharpe Ratio is an indication of unfavorable performance.

39
Comparison of Sharpe and Treynor

Sharpe and Treynor measures are similar in a way, since they both divide the risk
premium by a numerical risk measure. The total risk is appropriate when we are
evaluating the risk return relationship for well-diversified portfolios. On the other
hand, the systematic risk is the relevant measure of risk when we are evaluating less
than fully diversified portfolios or individual stocks. For a well-diversified portfolio
the total risk is equal to systematic risk. Rankings based on total risk (Sharpe measure)
and systematic risk (Treynor measure) should be identical for a well-diversified
portfolio, as the total risk is reduced to systematic risk. Therefore, a poorly diversified
fund that ranks higher on Treynor measure, compared with another fund that is highly
diversified, will rank lower on Sharpe Measure.

Jenson Model

Jenson's model proposes another risk adjusted performance measure. This measure
was developed by Michael Jenson and is sometimes referred to as the Differential
Return Method. This measure involves evaluation of the returns that the fund has
generated vs. the returns actually expected out of the fund given the level of its
systematic risk. The surplus between the two returns is called Alpha, which measures
the performance of a fund compared with the actual returns over the period. Required
return of a fund at a given level of risk (Bi) can be calculated as:

Ri = Rf + Bi (Rm - Rf)

Where, Rm is average market return during the given period. After calculating it,
alpha can be obtained by subtracting required return from the actual return of the fund.

Higher alpha represents superior performance of the fund and vice versa. Limitation of
this model is that it considers only systematic risk not the entire risk associated with
the fund and an ordinary investor can not mitigate unsystematic risk, as his knowledge
of market is primitive.

40
 CHAPTER: 4
DATA INTERPRETATION &
ANALYSIS

41
This Chapter includes Data analysis and data
interpretation.

Instruments of Reliance Mutual Fund

Reliance Vision Fund

Reliance Vision Fund was launched in October 1995, with an objective to achieve
long term growth of capital. One of the flagship schemes of Reliance Mutual Fund,
Reliance Vision Fund focuses on companies with Large size capitalization with a
small exposure to companies with a Mid size capitalization.

Benchmark Index: BSE 100

RETURN OF THE SCHEME

Table-1

Compounded Annualized Returns as on Scheme Benchmark

August 31, 2010 Returns % Returns %

Returns for the last 1 year 26.63 17.05

Returns for the last 3 years 8.36 7.00

Returns for the last 5 years 21.06 18.12

Returns since inception ( October 8, 1995) 24.83 12.61

42
Absolute Returns for each financial year for the last 5 years

PERFORMANCE OF THE FUND

Table-2

Performance as on 30/07/2010
Absolute Compound Annualized
6 months 1 Year 3 Years 5 Years Since Inception

Reliance Vision Fund - Retail Plan - Growth 18.63 25.65 8.26 21.17 25.44
BSE100 14.09 19.00 5.81 18.39 13.28

43
Volatility Measures
Beta 0.8515
Standard Deviation 4.2691
Sharpe Ratio 0.0411
Portfolio Turnover Ratio 1.53

INTERPRETATION:

• The returns of reliance vision fund were decent upto s years of its inception.
The returns of this fund raised substantially during 2001-2002 to 26%(approx).
• Returns of the fund are more than the benchmark return.performance of the
fund i.e its annualised compounded since its inception is 25%.
• The fund is not very risky, the volatality of the fund to market condition is
0.85%.

44
The primary investment objective of the Scheme is to achieve long-term growth of
capital by investment in equity and equity related securities through a research based
investment approach.

Benchmark Index: BSE 100

Minimum Application Amount:
Retail Plan : Rs 5000 and in multiples of Re. 1 thereafter

Minimum additional purchase amount:

Retail Plan : Rs 1000 and in multiples of Re. 1 thereafter

Asset Allocation:

Table-3

Indicative asset
Instrument allocation Risk Profile
(% of total assets)
Maximum Minimum
Equity and Equity related Instruments 100% 65% High
Debt Instruments & Money Market 35% 0% Medium to Low
Instruments

45
Performance of the scheme

Performance as on 30/06/2010
Absolute Compound Annualized
6 months 1 Year 3 Years 5 Years Since Inception
Reliance Growth Fund - Retail Plan - Growth 16.11 29.54 13.53 23.92 29.99
BSE100 14.09 19.00 5.81 18.39 13.28

SCHEME RETURN
Table-5

Compounded Annualized Scheme Returns % Benchmark Returns %

Returns as on JUNE 31,
2010

46
Returns for the last 1 30.20 17.05
year
Returns for the last 3 15.16 7.00
years
Returns for the last 5 23.23 18.12
years
Returns since inception 29.59 12.61
(October 8, 1995)

Absolute Returns for each financial year for the last 5 years

Table-6

RELIANCE
GROWTH FUND BSE100
FY05-06 92.28 69.57
FY06-07 12.96 11.57
FY07-08 28.59 24.98
FY08-09 -37.97 -39.97
FY09-10 112.06 88.17

47
Table-7

Volatility Measures
Beta 0.7666
Standard Deviation 3.8432
Sharpe Ratio 0.0268
Portfolio Turnover Ratio 1.53

INTERPRETATION:

• The returns of reliance vision fund were decent upto 5 years of its inception.
The returns of this fund raised substantially during 2001-2002 to 30%(approx).
• Returns of the fund are more than the benchmark return. Performance of the
fund i.e its annualised compounded since its inception is 25%.
• The fund is not very risky, the volatality of the fund to market condition is
0.76%.

The primary investment objective of the scheme is to seek to generate capital

appreciation & provide long-term growth opportunities by investing in a portfolio
constituted of equity & equity related securities of top 100 companies by market
capitalization & 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.

Benchmark Index : S&P CNX Nifty

48
Minimum Application Amount
Retail Plan : Rs. 5000 and in multiples of Re. 1 thereafter

Minimum additional purchase amount

Retail Plan : Rs. 1000 and in multiples of Re. 1 thereafter

Asset Allocation

Table-8

Indicative asset
Instrument allocation Risk Profile
(% of total assets)
Maximum Minimum
Equity and Equity Related Instruments 100% 75% Medium to
High
Debt and Money Market Instruments up to 25% Low to
(including investments in Securitized Debt) Medium

SCHEME PERFORMANCE
Table-9
Compounded Annualized Scheme Returns % Benchmark Returns %
Returns as on JUNE 31 2010
Returns for the last 1 year 7.23 15.88
Returns for the last 3 years 4.68 6.56
Returns for the last 5 years NA NA
Returns since inception ( 30 9.32 10.89
March2006)

Absolute Returns for each financial year for the last 5 years

Table-10

RELIANCE S&S CNX Nifty(%)

GROWTH

49
 FUND(%)
FY05-06 0.1 -0.48
FY06-07 8.66 12.31
FY07-08 20.29 23.89
FY08-09 -30.06 -36.19
FY09-10 59.63 73.76

Table-11

Performance
Absolute Compound Annualized
Since
6 months 1 Year 3 Year 5 Years Inception
Reliance Equity Fund - Retail 4.54 2.61 N.A 10.06
Plan - Growth 5.24
S & P CNX Nifty 14.58 18.61 6.27 N.A 13

Table-12

Volatility Measures
Beta 0.9046

50
Standard Deviation 4.4757
Sharpe Ratio 0.0412
Portfolio Turnover Ratio 0.84

INTERPRETATION:

• The returns of reliance vision fund were low calculated since its inception.
The returns of this fund raised substantially during 2001-2002 to 9.32%
(approx).
• Returns of the fund are more than the benchmark return. Performance of the
fund i.e its annualised compounded since its inception is 10.06%.
• The fund is slightly risky, the volatality of the fund to market condition is
0.90%.

(An Open-ended Equity Linked Savings Scheme.) The primary objective of the
scheme is to generate long-term capital appreciation from a portfolio that is invested
predominantly in equity and equity related instruments.

ASSET ALLOCATION

Indicative asset
Instrument allocation Risk Profile
(% of total assets)
Maximum Minimum
Equity and Equity related Instruments 1000% 80% High

51
 Debt Instruments & Money Market Upto 20% Medium to Low
Instruments

Scheme Features
Type: An Open-ended Equity Linked Savings Scheme.

Investment Objective:
The primary objective of the scheme is to generate long-term capital appreciation from
a portfolio that is invested predominantly in equity and equity related instruments.
Min. Additional Investment: Minimum additional purchases of Rs. 500.

Benchmark Index : BSE 100

SCHEME PERFORMANCE

TABLE-13
Compounded Annualised Scheme Returns % Benchmark Returns
Returns as on August 31 2010 %
Returns for the last 1 year 38.11 17.05
Returns for the last 3 years 10.92 7.00
Returns for the last 5 years N.A N.A
Returns since inception 16.70 17.43
( September 22 2005)

Absolute Returns for each financial year for the last 5 years
TABLE-14

RELIANCE GROWTH BSE100

52
 FUND
FY05-06 56.19 34.07
FY06-07 11.57 -0.37
FY07-08 24.98 5.49
FY08-09 -39.97 -30.71
FY09-10 88.17 92.75

Volatility Measures

Beta 0.8407
Standard Deviation 4.3766
R Squared 0.7864
Sharpe Ratio -0.0223
Portfolio Turnover Ratio 2.09

INTERPRETATION:

53
 • The returns of reliance vision fund were low calculated during early phases of
its inception. The returns of this fund raised substantially during 2001-2002 to
38.11%(approx).
• Returns of the fund are more than the benchmark return. Performance of the
fund i.e its annualised compounded for FY 2008-09 is 88.17%.
• The fund is slightly risky, the volatality of the fund to market condition is
0.84%.

RELIANCE LIFE INSURANCE INSTRUMENTS

EQUITY FUND

Fund objective: Provide high real rate of return in the long-term through high
exposure to equity investments, while recognizing that there is significant probability
of negative returns in the short term. The risk appetite is ‘high’.

Target asset allocation: Equity: 100%

Benchmark construction:S&P CNX Nifty: 100%

Asset Allocation

Fund Beta: 0.90

54
Growth of initial investment of Rs. 10,000

Fund Performance

Table-15

Period Gross Benchmark Standard Benchmark Fund Benchmark

fund return fund deviation standard sharpe sharpe ratio
return deviation ratio

last 1 year 23.36% 18.61% 15.40% 19.08% 1.19% 0.71%

last 2 year 26.86% 24.01% 28.88% 34.58% 0.76% 0.55%

(*(CAGR

last 3 year 4.96% 6.29% 32.22% 35.38% 0.001%- 0.04%

(*(CAGR

last 4 year 12.26% 13.86% 29.25% 31.83% 0.25% 0.28%

(*(CAGR

last 5 year 17.88% 18.31% 28.45% 30.50% 0.45% 0.44%

(*(CAGR

since 22.08% 23.60% 26.70% 28.45

inception
(*(CAGR

*CAGR: Compounded Annual Growth Rate

Interpretation:

• Return of the fund is 23.36% for last year i.e. FY 2009-10 and the average
return since inception is 22.08

• Volatility of the fund has reduced gradually making it more reliable.

55
 • Sharpe ratio was highest in the FY2009-10

• Growth og the fund is 31%(approx)

Capital Secure Fund

Fund Objective: Maintain the capital value of all contributions (net of charges) and
all interest additions, at all times. The risk appetite is ‘extremely low’.

Target Asset Allocation: Money Market Instruments: 100%

Benchmark Construction: Yield on 182-day T-bill: 100%

ASSET ALLOCATION

Fund characteristics:
YTM of debt portfolio: 6.82%

Growth of initial investment of Rs.10,000

56
Portfolio

Security total net assets rating/1-yr beta %

other money market 100.00

Instrument

total net assets 100.00

Fund Performance

Table-16

Period Gross Benchmark Standard Benchmark Fund Benchmark

fund return fund deviation standard sharpe sharpe ratio
return deviation ratio

last 1 year 6.72% 4.77% 0.15% 0.24% 11.81% 0.94%-

last 2 year 8.33% 5.08% 0.55% 0.43% 6.04% 0.19%

(*(CAGR

last 3 year 8.51% 6.07% 0.52% 0.54% 6.77% 2.00%

(*(CAGR

last 4 year 8.56% 6.43% 0.48% 0.50% 7.41% 2.85%

(*(CAGR

last 5 year 8.10% 6.45% 0.50% 0.45% 6.16% 3.20%

(*(CAGR

since 7.04% 5.76% 0.58% 0.48% 3.51% 1.60%

inception
(*(CAGR

57
 Date of Feb 2003
inception

*CAGR: Compounded Annual Growth Rate

Interpretation:

• Return of the fund is 6.73% for last year i.e. FY 2009-10 and the average
return since inception is 7.04%.

• Volatility of the fund has reduced gradually making it more reliable.

• Sharpe ratio was highest in the FY2009-10

• Growth of the fund is 14%(approx)

MONEY MARKET FUND

Fund Objective: To achieve predictable investment return. This will be achieved

through 100% investments in debt securities where returns are locked in through
portfolio immunization techniques and use of rigorous Asset Liability Management
(ALM). The risk appetite is 'low to moderate'.

Presently the investments of this fund are entirely in Certificate of deposits,

Commercial Paper and Fixed Deposits i.e. at 100% of the portfolio.

Target Asset Allocation

Money Market Instruments : 100%

Benchmark Construction
CRISIL Liquid Bond Index: 100%

ASSET ALLOCATION

58
FUND CHARACTERISTICS:

YTM of debt portfolio: 7.20 %

Growth of initial investment of Rs.10,000 in AIP

Fund Performance

Table-17

Period Gross fund Benchmark Fund Benchmark Fund Benchmark

return return standard standard sharpe sharpe ratio
deviation deviation ratio

last 1 year 7.17% 4.05% 0.09% 0.35% 24.07% 2.69%-

59
last 2 year 8.83% 5.42% 0.54% 0.81% 7.12% 0.52%
(*(CAGR

since 9.00% 6.11% 0.43% 0.72% 9.37% 1.53%

inception
(*(CAGR

*date of inception may, 2007

*CAGR: Compounded Annual Growth Rate

Interpretation:

• Return of the fund is 7.17% for last year i.e. FY 2009-10 and the average
return since inception is 9.00%

• Volatility of the fund has reduced gradually making it more reliable.

• Sharpe ratio was highest in the FY 2009-10

• Growth of the fund is 12%(approx)

Balanced Fund
Fund Objective: The investment objective of the fund is to provide investment returns
that exceed the rate of inflation in the long -term while maintaining a low probability
of negative returns in the short term. The risk appetite is defined as ‘low to moderate’.

Target asset allocation:

Debt.: 80% Equity: 20%

Benchmark construction:
CRISIL ST Bond Index: 80% S&P CNX Nifty: 20%

Asset Allocation as on Sept 30, 2010

60
Fund characteristics:

M.Duration of debt portfolio: 2.77 years

YTM of debt portfolio: 8.28%
Fund Beta: 0.92

Growth of initial investment of Rs. 10,000 in MRP

Fund Performance

Table-18

Period Gross fund Benchmark Standard Benchmark Fund Benchmark

return return fund deviation standard sharpe sharpe ratio
deviation ratio

last 1 year 9.68% 7.82% 3.38% 4.02% 1.38% 0.70%

last 2 year 13.52% 11.78% 6.77% 7.33% 1.26% 0.92%

(*(CAGR

last 3 year 8.44% 8.11% 7.38% 7.51% 0.47% 0.41%

(*(CAGR

last 4 year 9.65% 9.36% 6.85% 6.86% 0.68% 0.64%

61
 (*(CAGR

last 5 year 10.28% 9.74% 6.54% 6.49% 0.81% 0.73%

(*(CAGR

since 11.11% 9.91% 5.68% 5.76% 1.08% 0.85%

inception
(*(CAGR

Date of February
inception 2003

*CAGR: Compounded Annual Growth Rate

Interpretation:

• Return of the fund is 23.36% for last year i.e. FY 2009-10 and the average
return since inception is 22.08.

• Volatility of the fund has reduced gradually making it more reliable.

• Sharpe ratio has reduced in the FY2009-10

• Growth of the fund is 17%(approx)

62
 Chapter-5

CONCLUSION & FINDINGS

FINDINGS

• The volatility of life insurance instruments i.e. the average beta of the
instruments is 0.9 whereas the average beta of mutual fund instruments is 0.85.
Thus the life insurance instruments are more volatile as compared to mutual
fund instruments.

• Average Standard deviation of life insurance instruments is 8%(approx) and

the standard deviation of mutual fund instruments is 4.5% . It means that the
deviation in return from the expected return is high in case of life insurance

63
 instruments. This makes life insurance instruments more risky as compared to
mutual fund instruments.

• Average return of life insurance instruments is 18.5% and of mutual fund

instruments is 20%. Mutual fund instruments give more return comparative to
life insurance instruments.

• Average sharpe ratio of mutual fund instruments is 0.02% and of life

insurance instruments is 3.60.It means that the ratio of returns generated by the
fund over and above risk free rate of return and the total risk associated with it
is very high in case of life insurance instruments.

• The growth rate of mutual funds is quite higher as compared to life insurance
instruments.

CONCLUSION

This study concludes that the life insurance instruments are more volatile to market
conditions as compared to mutual funds. Mutual fund instruments of Reliance mutual
fund offer a high rate of return as compared Reliance life insurance instruments and
the growth rate is high in mutual fund. Reliance life insurance instruments are more
risky when compared to reliance mutual fund instruments. Thus as an investment
option Reliance mutual fund instruments are more attractive.

64
 RECOMMENDATION

Large segment of Indian consumer market is unaware of the investment options like
mutual funds and ULIP plans so company need to operate a advertising campaign or
promotion activities to increase awareness about investments.

Company need to give higher quality of services and satisfaction to the customer for
having higher market share and growth.

65
The rural and lower middle class population of India still believes in traditional
patrons of investments. So it gives them fewer returns at higher risk so to change the
mind of large potential consumer market bank should plane something solid steps.

Unavailability of branches in villages and undeveloped areas is also a constrain for

population of that area so company should plan to open its branches near every
potential market segment.

:Limitation of the study

• The topic of project is vast and thus time constraint.

• Analysis include various indicators, it is difficult task to select the most
reliable among all at right time.
• Mutual fund and life insurance are financial instruments of different nature
which makes the comparative analysis difficult.

66
67
 Chapter-6

Bibliography

BIBLIOGRAPHY

BOOKS:

• Chandra Prasanna, Investment Analysis and Portfolio Management,Tata

Mcgrill,2009
• Pandian Punithavathy , Security and Portfolio Management, Vikas Publishing
House ,2008
• Kevin S., Security and Portfolio Management, PHI publication,2008
• Tripathy, Financial Instruments and services, Prentice Hall Pub,2009
• Thakur Mukesh , Guide to Financial Instruments,Taxman Pub. Ltd,2009

68
 • Sundaran Shanka, Indian Mutual Funds, 2008
• Amitabh Gupta, Mutual Funds in India, Anmol Pub.,2008
• Sahadevan, K.G. and Thiripalraju (2007), “Mutual Funds - Data Interpretations
And Analysis”, Prentice Hall of India Private Limited, New Delhi, 20077).
• Gupta O.P. and Sehgal Sanjay (2006), “Investment Performance of Mutual
Funds: The Indian Experience”, ICFAI Journal of Applied Finance, Vol. No 2.

WEBSITES:

• www.reliancelife.com

• www.capitalmarket.com

• www.indobase.com/markets

• www.wikipedia.com

• www.business-standard.com

• www.sebi.gov.in

• www.reliancecapital.com

• www.indiainfoline.com

• www.bimaonline.com

ANNEXURES

Net Asset value of Reliance life insurance ltd

NAV NAV DATE NAV

NAV
Date
30/11/20
07 10.567 1/9/2009 12.2063
31/12/20
07 10.6456 30/09/2009 12.3242
31/01/20
08 10.7299 1/10/2009 12.3276
31/03/20
08 10.7601 31/10/2009 12.3973
30/04/20
08 10.8304 3/11/2009 12.4063

69
31/05/20
08 10.8702 30/11/2009 12.5756
31/07/20
08 10.7825 31/12/2009 12.6054
30/08/20
08 10.8469 1/1/2010 12.6161
30/09/20
08 10.9057 31/01/2010 12.7035
31/10/20
08 10.9276 1/2/2010 12.7034
4/5/2009 12.1243 28/02/2010 12.6953
29/05/20
09 12.0586 2/3/2010 12.6833
31/05/20
09 12.0636 31/03/2010 12.8166
1/6/2009 12.0661 1/4/2010 12.8189
30/06/20
09 12.2325 30/04/2010 12.9906
1/7/2009 12.2527 3/5/2010 12.989
2/7/2009 12.2732 31/05/2010 13.0379
30/06/20
10 13.1136 1/6/2010 13.0333

70