Suresh Part B

PERFORMANCE OF MUTUAL FUND
Amruta Institute Of Engineering &Management Science
Page 1
MUTUAL FUND OVERVIEW

A mutual fund is professionally managed form of collective investment that pools of money from many investors and invest it in stocks,bonds,short term money market instruments and other securities Mutual fund is an investment company that pools money from small investors and invests in a variety of securities, such as stocks, bonds and money market instruments. Most open-end Mutual funds stand ready to buy back (redeem) its shares at their current net asset value, which depends on the total market value of the fund's investment portfolio at the time of redemption. Most open-end Mutual funds continuously offer new shares to investors. It is also known as an open-end investment company, to differentiate it from a closed-end investment company
Mutual funds invest pooled cash of many investors to meet the fund's stated investment objective. Mutual funds stand ready to sell and redeem their shares at any time at the funds current net asset value: total fund assets divided by shares outstanding.
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HISTORY OF MUTUAL FUND
The first mutual fund was started in the Netherlands in 1774. Then mutual funds spread across Scotland, the U.K and France before entering the U.S. These early mutual funds are called Investment Trusts. The first American mutual fund was New York stock trust, established in 1889. Then most of the mutual funds were started in Boston in the early 1920s, including the State Street Fund, Massachusetts Investors Trust (MFS), Fidelity, Pioneer, and the PutnamFund. In India, first mutual fund was started by Unit Trust of India in 1964.Reserve bank of india promoted UTI and continued to regulate it until the relationship had broken up in 1978. UTI launched a ULIP in 1971 and six more schemes between 1981 and 1984. UTI enjoyedmonopoly until the public sector funds were allowed in to the industry. The second mutual fund was started by SBI in 1987.
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ADVANTAGES OF MUTUAL FUND

Portfolio Diversification Professional management Reduction / Diversification of Risk Liquidity Flexibility & Convenience Reduction in Transaction cost Safety of regulated environment Choice of schemes Transparency
DISADVANTAGE OF MUTUAL FUND

No control over Cost in the Hands of an Investor No tailor-made Portfolios Managing a Portfolio Funds Difficulty in selecting a Suitable Fund Scheme
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CATEGORIES OF MUTUAL FUNDS
BASED ON THEIR STRUCTURE
BASED ON THEIR INVESTMENT INDEX FUNDS DIVIDENT YIELD FUND EQUITY FUNDS EQUITY DIVERSIFIED THEMATIC FUNDS SECTOR FUNDS ELSS BALANCED FUNDS DEBT ORIENTED EQUITY ORIENTED LIQUID FUNDS GILT FUNDS
OPEN ENDED FUNDS
MUTUAL FUNDS
CLOSE ENDED FUNDS
DEBT FUNDS
INCOME FUNDS FMPs FLOATING RATE FUND ARBITRAGE FUNDS MIPs
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PERFORMANCE OF MUTUAL FUND Mutual funds can be classified as follow :

Based on their structure:
Open-ended funds: Investors can buy and sell the units from the fund, at an point of time. Close-ended funds: These funds raise money from investors only once. Therefore, after the offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most of the New Fund Offers of closeended funds provided liquidity window on a periodic basis such as monthly or weekly. Redemption of units can be made during specified intervals. Therefore, such funds have relatively low liquidity.
Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments. With fluctuating share prices, such funds show volatile performance, even losses. However,short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years. It can be further classified as: i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weightages. ii) Equity diversified funds- 100% of the capital is invested in equities spreading across different sectors and stocks. iii) Dividend yield funds- it is similar to the equity diversified funds except that the invest in companies offering high dividend yields. iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme. e.g. -An infrastructure fund invests in power, construction, cements sectors etc. v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest in banking stocks. vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.
Amruta Institute Of Engineering &Management Science Page 6
Balanced fund: Their investment portfolio includes both debt and equity. As a result, on the risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments.
Following are balanced funds classes:
i) Debt-oriented funds -Investment below 65% in equities. ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt. Debt fund: They invest only in debt instruments, and are a good option for investors averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs. i) Liquid funds- These funds invest 100% in money market instruments, a large portion being invested in call money market. ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills. iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate. iv) Arbitrage fund- They generate income through arbitrage opportunities due to mispricing between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities. v) Gilt funds - They invest 100% of their portfolio in long-term government securities. vi) Income funds - Typically, such funds invest a major portion of the portfolio in long-term debt papers. vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30% to equities. viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.
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History of Indian Mutual Fund Industry

The history of Mutual Funds in India can be broadly divided into 4 Phases: 1. First phase (1964-1987) 1.1 The Unit Trust of India (UTI) was established in the year 1963 by passing an act in the Parliament. 1.2. The UTI was setup by the Reserve Bank of India (RBI) and functioned under the Regulatory and Administrative control of the RBI. 1.3. The First scheme in the history of mutual funds was UNIT SCHEME-64, which is popularly known as US-64. 1.4. In 1978, UTI was de-linked from RBI. The Industrial Development Bank of India (IDBI) took over the Regulatory and Administrative control. At the end of the year 1988, UTI had Rs.6,700/- Crores of Assets Under Management.
1.5.
2. Second phase (1987-1993) 2.1. 2.2. 2.3 2.4 2.5 2.6 2.7 2.8 2.9 Entry of Public Sector Funds. In the year 1987, public sector Mutual Funds setup by public sector banks. Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) are came in to existence. State Bank of India Mutual Fund was the first non-UTI Mutual Fund. The following are the non-UTI Mutual Funds at initial stages. SBI Mutual Fund in June 1987. Can Bank Mutual Fund in December 1987. LIC Mutual Fund in June 1989.
2.10 Punjab National Bank Mutual Fund in August 1989.

3. Third phase (1993-2003) 3.1 Entry of Private Sector Funds - a wide choice to Indian Mutual Fund investors. 3.2 In 1993, the first Mutual Fund Regulations came into existence, under which all mutual funds except UTI were to be registered and governed. 3.3 The Erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector Mutual Fund Registered in July 1993. 3.4 In 1996, the 1993 Securities Exchange Board of India (SEBI) Mutual Funds regulations were substituted by a more comprehensive and revised Mutual fund Regulations. 3.5 The number of Mutual Fund houses went on increasing, with many foreign mutual funds setting up funds in India. 3.6 In this time, the Mutual Fund industry has witnessed several Mergers &Acquisitions. 3.7 The UTI with Rs.44, 541/- Crores. Of Assets Under management was way ahead of all other Mutual Funds.
The following was the status at end of February 2003:
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The diagram below shows three segments and some players in each segment.
4. Fourth phase (since 2003 February) 4.1 Following the repeal of the UTI Act in February 2003, it was (UTI) bifurcated into 2 separate entities.
4.2 One is the specified undertaking of the UTI with asset under management of Rs.29, 835/- Crores as at the end of January 2003. 4.3 The second is the UTI Mutual Funds Limited, sponsored by State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India. 4.4 UTI is functioning under an Administrator andunder the Rules framed by the government of India and does not comeunder the purview of the mutual Fund Regulations. 4.5 The UTI Mutual Funds Limited is registered with SEBI and functions under the Mutual Funds Regulations.
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4.6 With the bifurcation of the Erstwhile UTI, with the setting up of a UTI Mutual Fund, confirming 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 phases of consolidation and growth. At the end of September 2004, there were 29 funds, which manage assets of Rs.1, 53,108/- Crores under 421 different schemes.
4.7
4.8 At the end of March 2006, the status of Mutual fund Industry was:
INVESTMENT STRATEGIES
1. Systematic Investment Plan: Under this, a fixed sum is invested each month on a fixed date of a month. Payment ismade through post-dated cheques or direct debit facilities.The investor gets fewer units when the NAV is high and more units when the NAV is low This is called as the benefit of Rupee Cost Averaging (RCA) 2. Systematic Transfer Plan: Under this, an investor invest in debt-oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. 3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month..
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ORGANISATION OF MUTUAL FUND

SEBI
SPONSOR TRUSTEE
OPERATION
AMC FUND MANAGER
MKT./ SALES
MKT. / SALES
MUTUAL FUND SCHEMES INVESTOR
DISTRIBUTER
THE STRUCTURE CONSISTS OF:
SPONSOR Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the investment managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996. The sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund.
TRUST
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The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.
TRUSTEE Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders and ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner.
ASSET MANAGEMENT COMPANY (AMC) The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund. At least 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. The AMC must have a net worth of at least 10 cores at all times.
REGISTRAR AND TRANSFER AGENT
The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.
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DIFFERENT TYPES OF MUTUAL FUND
Reliance Mutual Fund HDFC Mutual Fund ICICI Prudential Mutual Fund UTI Mutual Fund Birla Sun Life Mutual Fund SBI Mutual Fund LIC Mutual Fund Kotak Mahindra Mutual Fund Franklin Templeton Mutual Fund IDFC Mutual Fund Tata Mutual Fund
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GROWTH UNDER ASSETS MANAGEMENT
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DISTRIBUTION CHANNELS:
Mutual funds posses a very strong distribution channel so that the ultimate customers doesnt face any difficulty in the final procurement. The various parties involved in distribution of mutual funds are:
1. Direct marketing by the AMCs: the forms could be obtained from the AMCs directly. The investors can approach to the AMCs for the forms. some of the top AMCs of India are; Reliance ,Birla Sunlife, Tata, SBI magnum, Kotak Mahindra, HDFC, Sundaram,ICICI, Mirae Assets, Canara Robeco, Lotus India, LIC, UTI etc. whereas foreign AMCs include: Standard Chartered, Franklin Templeton, Fidelity, JP Morgan, HSBC, DSP Merill Lynch, etc.
2. Broker/ sub broker arrangements: the AMCs can simultaneously go for broker/subbroker to popularize their funds. AMCs can enjoy the advantage of large network of these brokers and sub brokers.
3. Individual agents, Banks, NBFC: investors can procure the funds through individual agents, independent brokers, banks and several non- banking financial corporations too, whichever he finds convenient for him.
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Types of Mutual Funds 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 Open - Ended Schemes Close - Ended Schemes Interval Schemes
By Investment Objective Growth Schemes Income Schemes Balanced Schemes Money Market Schemes
Other Schemes
Tax Saving Schemes Special Schemes Index Schemes Sector Specific
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RELIANCE MUTUAL FUND

Reliance mutual fund, promoted by the Anil Dhirubhai Ambani (ADAG) group, is one of the fastest growing mutual funds in India having doubled its assets over the last one year. In March, 2006, the Reliance mutual fund emerged as the largest private sector fund house in the country, overtaking Prudential ICICI which has been holding that position for many years. The sponsor of the fund is Reliance Capital Limited, the financial services arm of ADAG. Reliance Capital Asset Management Limited, a wholly owned subsidiary of Reliance Capital Limited, acts as the AMC to the fund. Directors of the company include Amitabh Jhunjhunwala, a senior executive of ADAG. Amitabh Chaturvedi is the managing director of the AMC. 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 Rs 5,500 crore.
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About Reliance Capital Asset Management Ltd.

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. . Reliance Capital Asset Management Limited (RCAM) was approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 "Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited. A subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital being held by minority shareholders."
COMPITITORS OF RELIANCE MUTUAL FUND
ABN AMRO Mutual Fund

ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee (India) Pvt. Ltd. As the Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd. was incorporated on November 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund.
Birla Sun Life Mutual Fund

Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. Sun Life Financial is a global organization evolved in 1871 and is being represented in Canada, the US, the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life Mutual Fund follows a conservative long-term approach to investment. Recently it crossed AUM of Rs. 10,000 crores
Bank of Baroda Mutual Fund (BOB Mutual Fund)

Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under the sponsorship of Bank of Baroda. BOB Asset Management Company Limited is the AMC of BOB Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the custodian
HDFC Mutual Fund

HDFC Mutual Fund was setup on June 30, 2000 with two sponsorers namely Housing Development Finance Corporation Limited and Standard Life Investments Limited. HSBC Mutual Fund HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital Markets (India) Private Limited as the sponsor. Board of Trustees, HSBC Mutual Fund acts as the Trustee Company of HSBC Mutual Fund.
ING Vysya Mutual Fund

ING Vysya Mutual Fund was setup on February 11, 1999 with the same named Trustee Company. It is a joint venture of Vysya and ING. The AMC, ING Investment Management (India) Pvt. Ltd. Was incorporated on April 6, 1998.
Prudential ICICI Mutual Fund

The mutual fund of ICICI is a joint venture with Prudential Plc. of America, one of the largest life insurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13th of October,1993 with two sponsorers, Prudential Plc. and ICICI Ltd. The Trustee Company formed is Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company Limited Incorporated on 22nd of June, 1993.
Sahara Mutual Fund

Sahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial Corporation Ltd. As the sponsor. Sahara Asset Management Company Private Limited incorporated on August 31, 1995 works as the AMC of Sahara Mutual Fund. The paid-up capital of the AMC stands at Rs 25.8 crore.
State Bank of India Mutual Fund

State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshor fund, the India Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the largest Bank sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15 have already yielded handsome returns to investors. State Bank of India Mutual Fund has more than Rs. 5,500 Crores as AUM. Now it has an investor base of over 8 Lakhs spread over 18 schemes.
Tata Mutual Fund

Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsorers for Tata Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manager is Tata Asset Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset Management Limited's is one of the fastest in the country with more than Rs. 7,703 crores (as on April 30, 2005) of AUM.
Kotak Mahindra Mutual Fund

Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. It is presently having more than 1, 99,818 investors in its various schemes. KMAMC started its operations in December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with varying risk return profiles. It was the first company to launch dedicated gilt scheme investing only in government securities.
Unit Trust of India Mutual Fund

UTI Asset Management Company Private Limited, established in Jan 14, 2003, manages the UTI Mutual Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management.
Standard Chartered Mutual Fund

Standard Chartered Mutual Fund was set up on March 13, 2000 sponsored by Standard Chartered Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset Management Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December 20,1999.
Franklin Templeton India Mutual Fund

The group, Franklin Templeton Investments is a California (USA) based company with a global AUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups in the world. Investors can buy or sell the Mutual Fund through their financial advisor or through mail or through their website. They have Open end Diversified Equity schemes, Open end Sector Equity schemes, Open end Hybrid schemes, Open end Tax Saving schemes, Open end Income and Liquid schemes, Closed end Income schemes and Open end Fund of Funds schemes to offer.
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Morgan Stanley Mutual Fund India

Morgan Stanley is a worldwide financial services company and its leading in the market in securities, investment management and credit services. Morgan Stanley Investment Management (MISM) was established in the year 1975. It provides customized asset management services and products to governments, corporations, pension funds and non-profit organizations. Its services are also extended to high net worth individuals and retail investors. In India it is known as Morgan Stanley Investment Management Private Limited (MSIM India) and its AMC is Morgan Stanley Mutual Fund (MSMF). This is the first close end diversified equity scheme serving the needs of Indian retail investors focusing on a long-term capital appreciation.
Escorts Mutual Fund

Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its sponsor. The Trustee Company is Escorts Investment Trust Limited. Its AMC was incorporated on December 1, 1995 with the name Escorts Asset Management Limited.
Alliance Capital Mutual Fund

Alliance Capital Mutual Fund was setup on December 30, 1994 with Alliance Capital Management Corp. of Delaware (USA) as sponsored. The Trustee is ACAM Trust Company ,Pvt. Ltd. and AMC, the Alliance Capital Asset Management India (Pvt) Ltd. with the corporate office in Mumbai. Benchmark Mutual Fund Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt. Ltd. as the sponsored and Benchmark Trustee Company Pvt. Ltd. as the Trustee Company. Incorporated on October 16, 2000 and headquartered in Mumbai, Benchmark Asset Management Company Pvt. Ltd. is the AMC.
Canbank Mutual Fund

Canbank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as the sponsor. Canbank Investment Management Services Ltd. incorporated on March 2, 1993 is the AMC. The Corporate Office of the AMC is in Mumbai.
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Chola Mutual Fund
Chola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance Company Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is Cholamandalam AMC Limited.
LIC Mutual Fund

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in accordance with the provisions of the Indian Trust Act, 1882. . The Company started its business on 29th April 1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management Company Ltd as the Investment Managers for LIC Mutual Fund.
GIC Mutual Fund

GIC Mutual Fund, sponsored by General Insurance Corporation of India (GIC), a Government of India undertaking and the four Public Sector General Insurance Companies , viz. National Insurance Co. Ltd (NIC), The New India Assurance Co. Ltd. (NIA), The Oriental Insurance Co. Ltd (OIC) and United India Insurance Co. Ltd. (UII) and is constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882. Future of Mutual Funds in India By December 2004, Indian mutual fund industry reached Rs 1, 50,537 crore. It is estimated that
VISION STATEMENT To be a globally respected wealth creator with an emphasis on customer care and a culture of good corporate governance MISSION STATEMENT To create and nurture a world-class, high performance environment aimed at delighting our customers.
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PERFORMANCE OF MUTUAL FUND Types of Reliance Mutual Funds

Reliance Growth Fund Reliance Vision Fund Reliance Banking Fund Reliance Di versified Power Sector Fund Reliance Pharma Fund Reliance Media & Entertainment Fund Reliance NRI Equity Fund Reliance Equity opportunities Fund Reliance Index Fund Reliance Tax Saver (ELSS) Fund Reliance Equity Fund Reliance Long Term Equity Fund Reliance Regular Saving Fund
There are two types of investment in Mutual Funds.

Lump Sum Systematic Investment Plan(SIP)
Lump Sum : In Lump sum the investment is only one timesthat is of Rs. 5,000. and if the investment is monthly then the investment will be 6,000/-. Systematic Investment Plan(SIP): We have already mentioned about SIPs in brief in the previous pages butnow going into details, we will see how the power of compounding could benefit us. In such case, every small amounts invested regularly can grow substantially.
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RELIANCE MUTUAL FUND SCHEMES

Equity/Growth Schemes The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Debt/Income Schemes The aim of income funds is to provide regular and steady income to investors. Such schemesgenerally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations Sector Specific Schemes These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.
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AWARDS OF THE COMPANY1. Reliance Capital Asset Management Ltd. won the Asia Asset Management Award 2007 2. Reliance Capital Asset Management Ltd. won the Social & Corporate Governance Award 2007 3. Reliance Mutual Fund has been awarded the "NDTV Business Leadership Award 2007" in the Mutual Fund category. 4. CNBC TV18 - CRISIL Mutual Fund of the Year Award for 2007
Achievements
In two successive joint surveys by The Economic Times Brand Equity and AC Nielsen, Reliance was recognized as Indias Most Trusted Mutual Fund. The company also walked away with seven other scheme prizes five of them being outright winners in the Gulf 2007 Lipper Awards. These included the Fund House of the Year by Lipper GCC as well as ICRA Online and the Most Improved Fund House by Asia Asset Management. It also received the NDTV Business Leadership Award 2007 in the mutual fund category and runners up recognition as the Best Fund House in the Outlook Money-NDTV Profit Awards. In addition, the company received the coveted CNBC Web18 Genius of the Web distinction for the Best Mutual Fund Website in the country. RCAM was awarded the India Onshore Fund House 2008 instituted by the Asian Investor magazine. The company also won the India Equities award in the 5- yearPerformance category.
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PERFORMANCE OF MUTUAL FUND

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

MUTUAL FUND OVERVIEW

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

ADVANTAGES OF MUTUAL FUND

DISADVANTAGE OF MUTUAL FUND

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

CATEGORIES OF MUTUAL FUNDS

BASED ON THEIR STRUCTURE

OPEN ENDED FUNDS

CLOSE ENDED FUNDS

INCOME FUNDS FMPs FLOATING RATE FUND ARBITRAGE FUNDS MIPs

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND Mutual funds can be classified as follow :

Based on their investment objective:

PERFORMANCE OF MUTUAL FUND

Following are balanced funds classes:

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

History of Indian Mutual Fund Industry

2.10 Punjab National Bank Mutual Fund in August 1989.

PERFORMANCE OF MUTUAL FUND

The following was the status at end of February 2003:

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

ORGANISATION OF MUTUAL FUND

AMC FUND MANAGER

MUTUAL FUND SCHEMES INVESTOR

THE STRUCTURE CONSISTS OF:

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

REGISTRAR AND TRANSFER AGENT

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

DIFFERENT TYPES OF MUTUAL FUND

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

GROWTH UNDER ASSETS MANAGEMENT

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

Types of Mutual Funds Scheme in India

Tax Saving Schemes Special Schemes Index Schemes Sector Specific

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

RELIANCE MUTUAL FUND

Amruta Institute Of Engineering &Management Science

PERFORMANCE OF MUTUAL FUND

About Reliance Capital Asset Management Ltd.

COMPITITORS OF RELIANCE MUTUAL FUND

ABN AMRO Mutual Fund

Birla Sun Life Mutual Fund