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Report on reliance mutual funds
by Anshi Bajpai on Nov 26, 2012
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Report on reliance mutual funds by Anshika Bajpai
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Report on reliance mutual funds Document Transcript
1. SUMMER INTERNSHIP REPORT ONCOMPARITIVE ANALYSIS OF RELIANCE
MUTUALFUNDS WITH OTHER EXISTING MUTUAL FUNDS... 1
2. Submitted in fulfillment for the award of Master of business administration (G.B.T.U.
Lucknow) SESSION: 2010-2012 FOR THE PARTIAL FULFILLMENT OF TWO
YEAR DEGREE IN MASTER OF BUSINESS ADMINISTRATIONUNDER THE
GUIDANCE OF: SUBMITTEDBY:SANJAY KUMAR ANSHIKABAJPAIBranch
Manager MBA-Final yrReliance Mutual Fund Roll No.-1034970004 MAHARANA

18. INSTITUTE OF PROFESSIONAL STUDIES (AFFILIATED BY GAUTAM BUDDH
TECHNICAL UNIVERSITY) APPROVED BY AICTE, MINISTERY OF HRD, GOVT.
OF INDIA, 2
3. PREFACEWith the growth of rapid industrialization the need of management is felt
every where.management, A research report provides the most natural condition under
which a studentcan learn and got success in implementing the theoretically learned in to
the practical andcurrent environment of daily practices done by the people (investor) it
helps a student tolearn, to improve, to improvise, to experiment, to find knowledge in all
possible ways andto translate that knowledge into action.MBA is a foundation stone to
the management career. The classroom learning needs topractical exposure. To develop
concrete managerial and administrative skills of potentialmanager, it is important that the
interaction to the real environment be there.The project is a real life venture for me. It is a
great privilege that you have spread your forreading this. In forthcoming pages, an
attempt has been made to present the different aspectof my project. 3
4. Date (AnshikaBajpai)Place: Kanpur ACKNOWLEDGMENTIf words are considered
as a symbol of approval and taken of appreciation then let thewords play the heralding
role expressing my gratitude.First of all I thank to my Gracie god who blessed me with
all kind of facilities that had beenprovided to me for completion of my report.I‟m also
grateful to my teacher for guiding me to learn and helped me on project
onCOMPARITIVE ANALYSIS OF RELIANCE MUTUAL FUND WITH
OTHEREXISTING MUTUAL FUNDS.My endless appreciation goes to my all respected
faculty who has stood by my side andgive me moral support whenever I was low and
boosted my will power. Finally, I wouldlike to express my solidarity towards the
RELIANCE GROUP for providing me with suchan opportunity. 4
5. Thank You INTRODUCTION TABLE OF CONTENTS HISTORY OF THE
RELIANCE COMPANY 7-8 COMPANY PROFILE 9-10 RELIANCE 11-13
MUTUAL FUND PROFILE 14- Reliance Mutual Fund - 19 HISTORY OF MUTUAL
FUND About the project Accelerating Growth 20- Disadvantages of Advantages of
mutual funds 62 mutual funds 5
Risks 6. Types of mutual Various mutual fund scheme involved in mutual funds
The Costs involved in mutual fund Different types of funds fund Some of the
existing asset management company values of your fund Mutual Graphical
representation Development of mutual fund in India Frequently used terms in mutual
funds Flow chart funds organizations OBJECTIVE OF Working of mutual
fund Structure of Indian mutual fund THE STUDY SCOPE OF THE STUDY 63-64
RESEARCH METHODOLOGY 65-66 USE OF THE PROJECT 67-70
IMPORTANCE 71 OF THE STUDY RESEARCH ANALYSIS AND 72-73
INTERPRETATION FINDINGS 74-90 91-92 6
7. SWOT ANALYSIS 93- weakness Strengths 96 RECOMMENDATIONS
CONCLUSION 97-98 99- 100 ANNEXURE 101- BIBLIOGRAPHY 105 106
Introduction 7
8. There are a lot of investment avenues available today in the financial market for an
investorwith an investable surplus. He can invest in Bank Deposits, Corporate
Debentures, andBonds where there is low risk but low return. He may invest in Mutual of
companies wherethe risk is high and the returns are also proportionately high. The recent

19. trends in theMutual Market have shown that an average retail investor always lost with
periodic bearishtends. People began opting for portfolio managers with expertise in
Mutual markets whowould invest on their behalf. Thus we had wealth management
services provided by manyinstitutions. However they proved too costly for a small
investor. These investors havefound a good shelter with the mutual funds.Like most
developed and developing countries the mutual fund cult has been catching on inIndia.
The reasons for this interesting occurrence are: 8
9. # Mutual funds make it easy and less costly for investors to satisfy their need for
capitalgrowth, income and/or income preservation.# Mutual fund brings the benefits of
diversification and money management to theindividual investor, providing a
Opportunity for financial success that was once availableonly to a select few. History of
Reliance Company 9
10. The reliance group founded by Dhirubhai. H. Ambani (1932-2002) is India‟s largest
privatesector enterprise. He is credited to have brought about the equity cult in India in
the lateseventies and is regarded as an icon for enterprise in India. He epitomized the
spirit dare todream 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.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 1978UTI was delinked from the RBI and Industrial Development Bank of India (IDBI)
took overthe Regulatory and administrative control in place of RBI.In the year 1987
Public Sector banks like State Bank of India, Punjab National Bank, IndianBank, Bank of
India, and Bank of Baroda have set up mutual funds.Apart from these above mentioned
banks Life Insurance Corporation [LIC] and GeneralInsurance Corporation [GIC] too
have set up mutual fund. LIC established its mutual fundin June 1989.while GIC had set
up its mutual fund in December 1990.The mutual fundindustry had assets 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. 10
11. Company Profile 11
12. Reliance Group Holdings has grown from a small office data-processing equipment
firm in1961 into a major insurance and financial-services group in one generation under
one chief.Reliances insurance operations constitute the nations 27th-largest property and
casualtyoperation. The parent company also includes a development subsidiary in
commercial realestate. Reliances international consulting group contains several energy,
environment, andnatural resources consulting. A financial arm invests in other
businesses, primarilytelevision stations.Reliance Insurance started as the Fire Association
of Philadelphia in 1817, organized by 5hose and 11 engine fire companies. It became the
nations first association of volunteer firedepartments. Business got a boost as a result of
the Great Chicago Fire of 1871. 12
13. The association soon developed a field of agents to write policies across the country.
Forthe first two years, shareholders received dividends twice a year of $5 a share,
whichincreased gradually to $10 in 1876.In 1972, the Reliance insurance group divided
its pool so that Reliance Insurance Companyand its subsidiaries handled most standard
lines, while United Pacific Insurance Companyhandled 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

20. real estateoperations 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 companyof Days
Inn of America, the worlds third-largest hotel chain; it had been purchased in
1984.Reliance Industries Limited. The Groups principal activity is to produce and
distributeplastic and intermediates, polyester filament yarn, fiber intermediates,
polymerintermediates, crackers, chemicals, textiles, oil and gas. The refining segment
includesproduction and marketing operations of the Petroleum refinery. The
petrochemicalssegment includes production and marketing operations of petrochemical
products namely,High and Low density Polyethylene."Growth has no limit at Reliance. I
keep revising my vision.Only when you can dream it, you can do it." 13
14. Reliance mutual fund profileReliance Mutual Fund - Accelerating GrowthReliance
Mutual Fund, a part of the Reliance Anil Dhirubhai Ambani Group is the No. 1Mutual
Fund in India. Reliance Mutual Fund offers investors a well rounded portfolio ofproducts
to meet varying investor requirements. Reliance Mutual Fund has a presence inover 100
cities across the country, an investor base of over 3.9 million and manages assetsover Rs.
67,598 Crores as on August 31, 2007. Reliance Mutual Fund constantly endeavorsto
launch innovative products and customer service initiatives to increase value to
investors.Reliance Mutual Fund schemes are managed by Reliance Capital Asset
Management Ltd.,awholly owned subsidiary of Reliance Capital Ltd. Reliance Capital
Ltd. is one of India‟sleading and fastest growing private sector financial services
companies, and ranks amongthe top 3 private sector financial services and banking
companies, in terms of net worth.Reliance Capital Ltd. has interests in asset management
and mutual funds, life and generalinsurance, private equity and proprietary investments,
stock broking and other financialservices. 14
15. No.1 basis Assets under Management (AUM) as on August 31, 2007. 15
16. ABOUT PROJECT MUTUAL FUNDA mutual fund is nothing more than a
collection of Mutuals and/or bonds. You can think ofa mutual fund as a company that
brings together a group of people and invests their moneyin Mutuals, bonds, and other
securities. Each investor owns shares, which represent aportion of the holdings of the
fund. 16
17. You can make money from a mutual fund in three ways:1) Income is earned from
dividends on Mutuals and interest on bonds. A fund pays out.Nearly all income it
receives over the year to fund owners in the form of a distribution.2) If the fund sells
securities that have increased in price, the fund have a capital gain. Mostfunds also pass
on these gains to investors in a distribution.3) If fund holdings increase in price but are
not sold by the fund manager, the funds .Sharesincrease in price. You can then sell your
mutual fund shares for a profit.Funds will also usually give you a choice either to receive
a check for distributions ortoReinvest the earnings and get more shares.The competition
among funds has led to the launch of newer products, tailor-made to suitthe requirements
of investors. Mutual funds now offer products for the entire range of needsof investors.
The encouraging response to index funds and sector funds shows the growingmaturity
among investors. Open-end funds, which provide liquidity to investors at dailyNAV
related prices, are growing in popularity. The funds have be en adopting technology 17
18. to provide good service to investors and with the proposed introduction of electronic
fundstransfer and the growing trend towards E-Commerce; the efficiency of service will

21. increaseeven further. In the coming year‟s mutual funds as saving intermediaries will
play a greater role inbringing the gap between investors and issuers, especially in the area
of equity funds ?Atpresent these funds represents 13% of BSE market capitalization. This
is expected to go upwith increasing flows into financial savings, especially the mutual
fund with thegrowth and stability in the capital market flows into equity funds are
expected to go up. A Mutual Fund is a trust that pools the savings of a number of
investors who share acommon financial goal. The money thus collected is then invested
in capital marketinstruments such as shares, debentures and other securities. The income
earned throughthese investments and the capital appreciation realized is shared by its unit
holders inproportion to the number of units owned by them. Thus a Mutual Fund is the
most suitableinvestment for the common man as it offers an opportunity to invest in a
diversified,professionally managed basket of securities at a relatively low cost. Mutual
funds, also referred to as investment companies, offer an alternative investmentchoice for
individuals with a long-term horizon. The way they operate is that individualinvestor
money are pooled and invested in many different companies. Assets areprofessionally
managed to meet various investment objectives. They issue and sell shares toshare
holders and also redeem them (buy them back) upon request. Prices of shares are setdaily
at the close of business, based on the value of all investments in the mutual
fund‟sportfolio. Their major advantages are diversification and professional management,
which 18
19. are not readily available to small investors outside the mutual fund arena. Money
marketmutual funds are short-term funds. They invest in short-term cash and cash
equivalentinstruments, such as Treasury bills, certificates of deposit, and short-term
notes. Mutualfunds may own Mutual and bonds of many different companies.A mutual
fund is the ideal investment vehicle for today‟s complex and modern financialscenario.
Markets for equity shares, bonds and other fixed income instruments, real
estate,derivatives and other assets have become mature and information driven. Price
changes inthese assets are driven by global events occurring in faraway places. A typical
individual isunlikely to have the knowledge, skills, inclination and time to keep track of
events,understand their implications and act speedily. An individual also finds it difficult
to keeptrack of ownership of his assets, investments, brokerage dues and bank
transactions etc. 19
20. 20
21. History of mutualfundIn 1924 three Boston securities executives pooled their money
together to create the firstmutual fund. The idea of pooling money together for investing
purposes started in Europein the mid-1800s. The first pooled fund in the U.S was created
in 1893 for the faculty and 21
22. staff of Harvard University on March 21st, 1924 the first official mutual fund was
born. Itwas called the Massachusetts Investors Trust.However in India UTI was the first
to introduce mutual funds in the Indian markets and itcommenced its operations from
July 1964, Government allowed public sector banks andinstitutions to set up mutual
funds.In the year 1992, Securities and exchange Board of India (SEBI) Act was passed.
Theobjectives of SEBI are – to protect the interest of investors in securities and to
promote thedevelopment of and to regulate the securities market.As far as mutual funds
are concerned, SEBI formulates policies and regulates the mutualfunds to protect the
interest of the investors. SEBI notified regulations for the mutual fundsin1993.

22. Thereafter, mutual funds sponsored by private sector entities were allowed to enterthe
capital market. The regulations were fully revised in 1996 and have been
amendedthereafter from time to time. SEBI has also issued guidelines to the mutual funds
from timeto time to protect the interests of investors.All mutual funds whether promoted
by public sector or private sector entities includingthose promoted by foreign entities are
governed by the same set of Regulations. There is nodistinction in regulatory
requirements for these mutual funds and all are subject tomonitoring and inspections by
SEBI. The risks associated with the schemes launched by themutual funds sponsored by
these entities are of similar type. It may be mentioned here thatUnit Trust of India (UTI)
is not registered with SEBI as a mutual fund (as on January15,2002. The end of
millennium marks 36 years of existence of mutual funds in our country. 22
23. The ride through these 36 years is not been smooth. Investor opinion is still divided.
Whilesome are for mutual funds others are against it. MUTUAL FUND
SCHEMESMutual funds offer a variety of schemes to investor so as to provide steady
income orgrowth or both. They differ according to the investment policies. The funds like
individualinvestor have different goals. Of the investor who will first ascertain his
investmentobjectives, thinking that the units of a fund have an investment goal
paralleling hisobjectives FUND MUTUAL BASICS:As you probably know, mutual
funds have become extremely popular over the last 20years.What was once just another
obscure financial instrument is now a part of our daily lives.In fact, too many people,
investing means buying mutual funds. After all, its commonknowledge that investing in
mutual funds is (or at least should be) better than simply lettingyour cash waste away in a
savings account, but, for most people, thats where theunderstanding of funds ends. It
doesnt help those mutual fund sales people speak a strangelanguage that, sounding sort of
like English, is interspersed with jargon like MER, NAVPS,load/no-load, etc.Originally
mutual funds were heralded as a way for the little guy to get a piece of themarket. Instead
of spending all your free time buried in the financial pages of the 23
24. investment Journal, all you have to do is buy a mutual fund and youd be set on your
way tofinancial freedom. As you might have guessed, its not that easy. Mutual funds are
anexcellent idea in theory, but, in reality, they havent always delivered. Not all mutual
fundsare created equal, and investing in mutual‟s isnt as easy as throwing your money at
the firstsalesperson who solicits your business. ADVANTAGES OF MUTUAL FUND1-
Professional Management - The primary advantage of funds (at least theoretically)is the
professional management of your money. Investors purchase funds because they donot
have the time or the expertise to manage their own portfolio. A mutual fund is arelatively
inexpensive way for a small investor to get a full-time manager to make andmonitor
investments. 24
25. 2-Diversification - By owning shares in a mutual fund instead of owning
individualMutualOr bonds, your risk is spread out. The idea behind diversification is to
invest in a largenumber of assets so that a loss in any particular investment is minimized
by gains in others.In other words, the more Mutuals and bonds you own, the less any one
of them can hurt you(think about Enron). Large mutual funds typically own hundreds of
different Mutuals inmany different industries. It wouldnt be possible for an investor to
build this kind of aportfolio with a small amount of money.3-Economies of Scale -
Because a mutual fund buys and sells large amounts ofsecurities at a time, its transaction
costs are lower than you as an individual would pay.4-Liquidity - Just like an individual

23. Mutual, a mutual fund allows you to request that yourshares be converted into cash.5-
Simplicity- Buying a mutual fund is easy. DISADVANTAGES OF MUTUAL FUND1-
Professional Management- Did you notice how we qualified the advantage ofprofessional
management with the word "theoretically"? Many investors debate over 25
26. whether or not the so-called professionals are any better than you or I at picking
Mutuals.Management is by no means infallible, and, even if the fund loses money, the
manager stilltakes his/her cut. .2-Costs- Mutual funds dont exist solely to make your life
easier--all funds are in it for aProfit. The mutual fund industry is masterful at burying
costs under layers of jargon.Because funds have small holdings in so many different
companies, high returns from afew Investments often dont make much difference on the
overall return. Dilution is also theresult of a successful fund getting too big. When money
pours into funds that have hadstrong Success, the manager often has trouble finding a
good investment for all the newmoney3-Taxes- When making decisions about your
money, fund managers dont consider yourpersonal tax situation. For example, when a
fund manager sells a security, a capital-gain taxis triggered, which affects how profitable
the individual is from the sale. It might have beenmore advantageous for the individual to
defer the capital gains liability RISKS INVOLVED IN MUTUAL FUND 26
27. In short, how stable is the company or entity to which you lend your money when
youinvest? How certain are you that it will be able to pay the interest you are promised,
orrepay your principal when the investment matures? Inflation riskChanging interest
rates affect both equities and bonds in many ways. Investors arereminded that
“predicting” which way rates will go is rarely successful. A diversifiedportfolio can help
in offsetting these changes. Effect of loss of key professional and inability to adoptAn
industries‟ key asset is often the personnel who run the business i.e. intellectualproperties
of the key employees of the respective companies. Given the ever-changingcomplexion
of few industries and the high obsolescence levels, availability of qualified,trained and
motivated personnel is very critical for the success of industries in few sectors.It is,
therefore, necessary to attract key personnel and also to retain them to meet thechanging
environment and challenges all investments involve some form of risk, whichshould be
evaluated them potential Rewards when an investment is selected. Managing risk 27
28. At times the prices or yields of all the securities in a particular market rise or fall due
tobroad outside influences. When this happens, the Mutual prices of an out standing,
highlyprofitable company and a fledgling corporation may be affected.This change in
price is due to “market risk”. Interest rate riskSometimes referred to as “loss of
purchasing power”. Whenever inflation sprints forwardfaster than the earnings on your
investment, you run the risk that you will actually be able tobuy less, not more. Inflation
risk also occurs when prices rise faster than your returns. Credit riskThe sector offers.
Failure or inability to attract/retain such qualified key personnel mayimpact the prospects
of the companies in the particular sector in which the fund invests. Exchange risksA
number of companies generate revenues in foreign currencies and may have
investmentsor expenses also denominated in foreign currencies. Changes in exchange
rates may,therefore, have a positive or negative impact on companies which in turn
would have aneffect on the investment of the fund. Investment risks 28
29. The sectoral fund schemes, investments will be predominantly in equities of
selectcompanies in the particular sectors. Accordingly, the NAV of the schemes are
linked to theequity performance of such companies and may be more volatile than a more

24. diversifiedportfolio of equities. Changes in government policyChanges in Government
policy especially in regard to the tax benefits may impact thebusiness prospects of the
companies leading to an impact on the investments made bythe fund. 29
30. VARIOUS MUTUAL FUND SCHEME Mutual Fund Schemes:-Wide variety of
Mutual Fund Schemes exists to cater to the needs such as financial position,risk tolerance
and return expectations etc. The table below gives an overview into theexisting 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 30
31. Types of Mutual Fund 31
32. Mutual Funds: Different Types of FundsNo matter what type of investor you are there
is bound to be a mutual fund that fits yourstyle. According to the last count there are over
10,000 mutual funds in North America!That means there are more mutual funds than
Mutuals. Its important to understand thateach mutual fund has different risks and
rewards. In general, the higher the potential return,the higher the risk of loss. Although
some funds are less risky than others, all funds havesome level of risk--its never possible
to diversify away all risk. This is a fact for allinvestments.Each fund has a predetermined
investment objective that tailors the funds assets, regionsof investments, and investment
strategies. At the fundamental level, there are threevarieties: of mutual funds1) Equity
funds (Mutual)2)Fixed-income funds (bonds)3) Money market fundsAll mutual funds are
variations of these three asset classes. For example, while equityFunds that invest in fast-
growing companies are known as growth funds, equity funds that 32
33. Invest only in companies of the same sector or region is known as specialty funds.
Let‟s goover the many different flavors of funds. Well start with the safest and then Work
throughto the more risky. Money Market FundsThe money market consists of short-
term debt instruments, mostly T-bills. This is a safeLace to park your money. You wont
get great returns, but you wont have to worry aboutlosing your principal. A typical return
is twice the amount you would earn in a regularchecking/savings account and a little less
than the average certificate of deposit (CD).Wevegot a whole tutorial on the money
market if youd like to learn more about it. Bond/Income FundsIncome funds are named
appropriately: their purpose is to provide current income on asteady basis. When
referring to mutual funds, the terms "fixed-income," "bond," and"income" are
synonymous. These terms denote funds that invest primarily in governmentand corporate
debt. While fund holdings may appreciate in value, the primary objective ofthese funds is
to provide a steady cash flow to investors. As such, the audience for thesefunds consists
of conservative investors and retirees. 33
34. Bond funds are likely to pay higher returns than certificates of deposit and money
marketInvestments, but bond funds arent without risk. Because there are many different
types ofBonds, bond funds can vary dramatically depending on where they invest. For
example, afund specializing in high-yield junk bonds is much more risky than a fund that
invests ingovernment securities; also, nearly all bond funds are subject to interest rate
risk, whichmeans that if rates go up the value of the fund goes down. Balanced
FundsThe objective of these funds is to provide a "balanced" mixture of safety, income,
andcapital appreciation. The strategy of balanced funds is to invest in a combination of
fixed-income and equities. A typical balanced fund might have a weighting of 60%
equityand40% fixed-income. The weighting might also be restricted to a specified

25. maximum orminimum for each asset class.A similar type of fund is known as an asset
allocation fund. Objectives are similar to thoseof a balanced fund, but these kinds of
funds typically do not have to hold a specifiedpercentage of any asset class. The portfolio
manager is therefore given freedom to switchthe ratio of asset classes as the economy
moves through the business cycle. Equity FundsFunds that invest in Mutual represent
the largest category of mutual funds. Generally, theinvestment objective of this class of
funds is long-term capital growth with some income. 34
35. There are, however, many different types of equity funds because there are many
differenttypes of equities. A great way to understand the universe of equity funds is to use
a stylebox, an example of which is below.The idea is to classify funds based on both the
size of the companies invested in and theinvestment style of the manager. The term
"value" refers to a style of investing that looksfor high quality companies that are out of
favor with the market. These companies arecharacterized by low P/E ratios, price-to-book
ratios, and high dividend yields, etc.The opposite of value is growth, which refers to
companies that have had (and are expectedto continue to have) strong growth in earnings,
sales, and cash flow, etc. A compromisebetween value and growth is "blend," which
simply refers to companies that are neithervalue nor growth Mutuals and so are classified
as being somewhere in the middle. For example, a mutual fund that invests in large-cap
companies who are in strong financial shape but have recently seen their share price fall
would be placed in the upper left quadrant of the style box (large and value). The
opposite of this would be a fund that invests in startup technology companies with
excellent growth prospects. Such a mutual would reside in the bottom right quadrant
Global/International FundsAn international fund (or foreign fund) invests only outside
your home country.Global funds invest anywhere around the world, including your home
country.Its tough to classify these funds as either riskier or safer. On the one hand they
tend to bemore volatile and have unique country and/or political risks. But, on the flip
side, they can, 35
36. as part of a well-balanced portfolio, actually reduce risk by increasing
diversification.Although the worlds economies are becoming more inter-related, it is
Likely that anothereconomy somewhere is outperforming the economy of your home
Country. Index FundsThe last but certainly not the least important are index funds.
This type of mutual fundreplicates the performance of a broad market index such as the
sensex and nifty. Aninvestor in an index fund figures that most managers cant beat the
market. An index fundmerely replicates the market return and benefits investors in the
form of low fees. 36
37. COSTS INVOLVED IN MUTUAL FUND• Mutual Funds: CostsCosts are the
biggest problem with mutual funds. These costs eat into your return, and theyare the main
reason why the majority of funds end up with sub-par performance. What‟seven more
disturbing is the way the fund industry hides costs through a layer of financialcomplexity
and jargon. Some critics of the industry say that mutual fund Companies getaway with
the fees they charge only because the average investor does not understand whathe/she is
paying for. 37
38. Fees can be broken down into two categories:1. Ongoing yearly fees to keep you
invested in the fund.2. Transaction fees paid when you buy or sell shares in a fund
(loads)• The Expense RatioThe ongoing expenses of a mutual fund are represented by the
expense ratio. Thisis sometimes also referred to as the management expense ratio (MER).

26. The expense ratio iscomposed of the following:• The cost of hiring the fund manager(s) -
Also known as the management fee,This cost is between 0.5% and 1.0% of assets on
average. While it sounds small,This fee ensures that mutual fund managers remain in the
country‟s top echelon ofEarners. Think about it for a Second: 1% of 250 million (a small
mutual fund) is2.5 million--fund managers are definitely not going hungry! It‟s true that
payingManagers is a necessary fee, but don‟t think that a high fee assures
superiorPerformance.• Administrative costs –These include necessities such as postage,
record keeping, customer service, cappuccinomachines, etc. Some funds are excellent at
minimizing these costs while others (the oneswith the cappuccino machines in the office)
are not. On the whole, expense ratios range 38
39. from as low as 0.2% (usually for index funds) to as high as 2.0%. The average
equitymutual fund charges around 1.3%-1.5%. You‟ll generally pay more for specialty
orinternational funds, which require more expertise from manager..• Buying and Selling
39
40. (You can buy some mutual funds no-load) by contacting the fund companies
directly.Other funds are sold through brokers, banks financial planners, or insurance
agents. If youbuy through a third party there is a good chance they‟ll hit you with a sales
charge (load).That being said, more and more funds can be purchased through no-
transaction feeprograms that offer funds of many companies. Sometimes referred to as a
"fundsupermarket," this service lets you consolidate your holdings and record keeping,
and it stillallows you to buy funds without sales charges from many different companies.•
Popular examples are Schwab‟s OneSource, Vanguard‟s Fund Access, and Fidelity‟s
Funds Network. Many large brokerages have similar offerings. Selling a fund is as easy
as purchasing one. All mutual funds will redeem (buy back) your shares on any business
day. In the United States companies must send you the payment within seven days. 40
41. THE VALUES OF YOUR FUND Net asset value (NAV), which is a funds assets
minus liabilities, is the value of a mutual fund. NAV per share is the value of one share in
the mutual fund, and it is the number that is quoted in newspapers. You can basically just
think of NAV per share as the price of a mutual fund. It fluctuates everyday as fund
holdings and shares outstanding change. When you buy shares, you pay the current NAV
per share plus any sales front-end load. When you sell your shares, the fund will pay you
NAV less any back-end load .Moses gave to his follow eternities 10 commandments that
were to be followed till: The world of investments too has several ground rules meant for
investors who are novices in their own right and wish to enter the myriad world of
investments. These come in handy for there is every possibility of losing what one has if
due care is not taken.1. Assess yourself: Self-assessment of one‟s needs; expectations and
risk profile is of prime importance failing which; one will make more mistakes in putting
money in right places than otherwise. One should identify the degree of risk bearing
capacity one has and also clearly state the expectations from the investments. Irrational
expectations will only bring pain. 41
42. 2. Try to understand where the money is going : It is important to identify the nature
of investment and to know if one is compatible with the investment. One can lose
substantially if one picks the wrong kind of mutual fund. In order to avoid any confusion
it is better to go through the literature such as offer document and fact sheets that mutual
fund companies provide on their funds.3. One first has to decide what he wants the
money for and it is this investment goal that should be the guiding light for all

27. investments done. It is thus important to know the risks associated with the fund and
align it with the quantum of risk one is willing to take. One should take a look at the
portfolio of the funds for the purpose. Excessive exposure to any specific sector should
be avoided, as it will only add to the risk of the entire portfolio .Mutual funds invest with
a certain ideology such as the "Value Principle" or "Growth Philosophy". Both have their
share of critics but both philosophies work for investors of different kinds. Identifying the
proposed investment philosophy of the fund will give an insight into the kind of risks that
it shall be taking in future.4. A common investor is limited in the degree of risk that . It is
thus of key importance that there is thought given to the process of investment and to the
time horizon of the intended investment. One should abstain from speculating which in
other words would mean getting out of one fund and investing in another with the
intention of making 42
43. quick money. One would do well to remember that nobody can perfectly time the
market so staying invested is the best option unless there are compelling reasons to exit.5.
This old age adage is of utmost importance. No matter what the risk profile of a person is,
it is always advisable to diversify the risks associated. So putting one‟s money in
different asset classes is generally the best option as it averages the risks in each category.
Thus, even investors of equity should be judicious and invest some portion of the
investment in debt. Diversification even in any particular asset class (such as equity,
debt) is good. Not all fund managers have the same acumen of fund management and
with identification of the best man being a tough task; it is good to place money in the
hands of several fund managers. This might reduce the maximum return possible, but will
also reduce the risks.6. Investing should be a habit and not an exercise undertaken at
one‟s wishes, if one has to really benefit from them. As we said earlier, since it is
extremely difficult to know when to enter or exit the market, it is important to beat the
market by being systematic. The basic philosophy of Rupee cost averaging would suggest
that if one invests regularly through the ups and downs .of the market, he would stand a
better chance of generating more returns than the market for the entire duration. The SIP
s (Systematic Investment Plans) offered by all funds helps in being systematic. All that
one needs to do is to give post-dated cheques to the fund and thereafter one will not be
harried later. The 43
44. Automatic investment Plans offered by some funds goes a step further, as the amount
can be directly/electronically transferred from the account of the investment7. Do your
homework: It is important for all investors to research the avenues available to them
irrespective of the investor category they belong to. This is important because an
informed investor is in a better decision to make right decisions. Having identified the
risks associated with the investment is important and so one should try to know all
aspects associated with it. Asking the intermediaries is one of the ways to take care of the
problem. 8. Find the right funds Finding funds that do not charge many fees is of
importance, as the fee charged ultimately goes from the pocket of the investor. This is
even more important for debt funds as the returns from these funds are not much. Funds
that charge more will reduce the yield to the investor. Finding the right funds is important
and one should also use these funds for tax efficiency. Investors of equity should keep in
mind that all dividends are currently tax-free in India and so their tax liabilities can be
reduced if the dividend payout option is used. Investors of debt will be charged a tax on
dividend distribution and so can easily avoid the payout options. 44

28. 45. 9. Keep track of your investmentsFinding the right fund is important but even more
important is to keep track of the way theyare performing in the market. If the market is
beginning to enter a bearish phase, theninvestors of equity too will benefit by switching
to debt funds as the losses can beminimized. One can always switch back to equity if the
equity market starts to show somebuoyancy.10. Know when to sell your mutual
funds:Knowing when to exit a fund too is of utmost importance. One should book
profitsimmediately when enough has been earned i.e. the initial expectation from the fund
hasbeen met with. Other factors like non-performance, hike in fee charged and change in
anybasic attribute of the fund etc. are some of the reasons for to exit. For more on it,
read"When to say goodbye to your mutual fund.”Investments in mutual funds too are not
risk-free and so investments warrant some cautionand careful attention of the investor.
Investing in mutual funds can be a dicey business forpeople who do not remember to
follow these rules diligently, as people are likely to commitmistakes by being ignorant or
adventurous enough to take risks more than what they canabsorb. This is the reason why
people would do well to remember these rules before theyset out to invest their hard-
earned money.SOME OF THE EXISTING AMC (ASSET
MANAGEMENTCOMPANY) 45
BOB Mutual Birla Mutual Fund Alliance Mutual Fund 46. HDFC Mutual Fund
DSP Merrill Lynch Mutual Fund BOI Mutual Fund Fund ING Mutual Fund
Indian Bank Mutual Fund IDBI Principal Mutual Fund Morgan Stanley Mutual
Fund LIC Mutual Fund Kotak Mahindra Mutual Fund Prudential ICICI Mutual
PNB Mutual Fund Pioneer ITI Mutual Fund Fund¾Reliance Capital Mutual
Fund¾SBI Standard Mutual Fund Tata TD Waterhouse Mutual Sundaram Mutual
Fund Chartered Mutual Fund Taurus Mutual Fund Fun 46
47. DEVELOPMENT OF MUTUAL FUND IN INDIAThe mutual fund industry in India
started in 1963 with the formation of unit trust ofIndia at the initiative of government of
India and reserve bank of India. The historyOf mutual fundIn India can be divided into
four phases:FIRST PHASE : 1964 – 87SECOND PHASE: 1987-1993 (ENTRY OF
PUBLIC SECTOR FUNDS)THIRD PHASE : 1993 – 2003 (ENTRY OF PRIVATE
SECTOR FUNDS)FOURTH PHASE: SINCE FEBURARY 2003 47
48. The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India,at the initiative of the Government of India and Reserve Bank of India. The history
ofmutual funds in India can be broadly divided into four distinct phasesFirst Phase –
1964-87 Unit Trust of India (UTI) was established on 1963 by an Act ofParliament. It
was set up by the Reserve Bank of India and functioned under the Regulatoryand
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked fromthe
RBI and the Industrial Development Bank of India (IDBI) took over the regulatoryand
administrative control in place of RBI. The first scheme launched by UTI was
UnitScheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under
management.Second Phase – 1987-1993 (Entry of Public Sector Funds) 1987 marked the
entry ofnon- UTI, public sector mutual funds set up by public sector banks and Life
InsuranceCorporation of India (LIC) and General Insurance Corporation of India (GIC).
SBI MutualFund was the first non- UTI Mutual Fund established in June 1987 followed
by Canarabank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian BankMutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LICestablished its mutual fund in June 1989 while GIC had set up its mutual

29. fund in December1990. At the end of 1993, the mutual fund industry had assets under
management of Rs.47,004 crores. Third Phase – 1993-2003 (Entry of Private Sector
Funds) with the entry of privatesector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian 48
49. investors a wider choice of fund families. Also, 1993 was the year in which the first
MutualFund Regulations came into being, under which all mutual funds, except UTI
were to beregistered and governed. The erstwhile Kothari Pioneer (now merged with
FranklinTempleton) was the first private sector mutual fund registered in July 1993. The
1993SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revisedMutual Fund Regulations in 1996. The industry now functions under the SEBI
(MutualFund) Regulations 1996. The number of mutual fund houses went on increasing,
withmany foreign mutual funds setting up funds in India and also the industry has
witnessedseveral mergers and acquisitions. As at the end of January 2003, there were 33
mutual fundswith total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44,
541 crores ofassets under management was way ahead of other mutual funds.Fourth
Phase – since February 2003 In February 2003, following the repeal of the UnitTrust of
India Act 1963 UTI was bifurcated into two separate entities. One is the
SpecifiedUndertaking of the Unit Trust of India with assets under management of Rs.29,
835 croresas at the end of January 2003, representing broadly, the assets of US 64
scheme, assuredreturn and certain other schemes. The Specified Undertaking of Unit
Trust of India,functioning under an administrator and under the rules framed by
Government of India anddoes not come under the purview of the Mutual Fund
Regulations. The second is the UTIMutual Fund, sponsored by SBI, PNB, BOB and LIC.
It is registered with SEBI andfunctions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTIwhich had in March 2000 more than Rs.76, 000 crores of
assets under management and 49
50. with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
FundRegulations, and with recent mergers taking place among different private sector
funds, themutual fund industry has entered its current phase of consolidation and growth.
GRAPHICAL REPRESENTATION 50
51. MUTUAL FUND - ORGANIZATIONSThere are many entities involved and the
diagram below illustrates the 51
52. Organizational set up of a mutual fund: REGULATORY BODIESFinancial System is
basically responsible for the major up and downs in the 52
53. Economy. So, there are some regulatory bodies on it which ensures effectivenessIn
the management of Fund of the investors and transparency in the transactions. FLOW
CHART 53
54. FREQUENTLY USED TERMS IN MUTUAL FUND 54
55. NET ASSET VALUENet Asset Value is the market value of the assets of the
scheme minus its liabilities. The perunit NAV is the net asset value of the scheme divided
by the number of units outstandingon the Valuation Date. SALE PRICEThe price you
pay when you invest in a scheme. Also called Offer Price. It may include asales load.
REPURCHASE PRICE 55
56. The price at which units under open-ended schemes are repurchased by the Mutual
Fund.Such prices are NAV related. REDEMPTION PRICEThe price at which close-
ended schemes redeem their units on maturity. Such prices areNAV related. SALES

30. LOAD A charge collected by a scheme when it sells the units. Also called, „Front-end‟
load.Schemes that do not charge a load are called „No Load‟ schemes. REPURCHASE
OR BACK END LOADA charge collected by a scheme when it buys back the units
from the Unit holders. STRUCTURE OF INDIAN MUTUAL FUND INDIAN
MUTUAL FUND INDUSTRY 56
57. The rising Indian mutual funds industry probably never had it better, as far as the
entry ofindividual or retail investors is concerned. The industry‟s total AUM in
December 2006stood at a hefty Rs 3, 23,597 crore, with a total of2.79 crore depositor
folios, of which 2.31crore depositor folios had invested inequity schemes. The share of
direct investors, on theother hand, has been dropping, stating that more retail investors
see mutual funds as apreferred route for investing in the markets.Existing and new market
players as well as Exchange Traded Funds are likely to hit themarket in the coming
months with a flurry of new Mutual Funds schemes. An action packedfirst quarter of
2007 was forecasted to witness at Least 20 new schemes which are waitingon the
sidelines to be launched. Market share *(%) of mutual funds companies 57
58. PERFORMANCE SNAPSHOT!!!The year 2006 scored high in terms of both returns
and volatility. The rising Indian mutualfunds industry saw its best, as far as the entry of
individual or retail investors is concerned.In 2006, out of the 159 diversified equity funds
(includes diversified equity, midcap, andequity tax saving schemes): 20 funds (13 %)
out-performed the Sensex 50 funds (37%) out performed theNifty 58
-
59.  The best returns generated were up to 58.3% (Tata Infrastructure Fund) Equity
Diversified funds churned out an average 33.2% return, which Compriseof 72 funds in
this category comprising of total 135 funds Infrastructure funds stole the limelight this
year with the top three Performersbeing Infrastructure Fund. TOTAL ASSET
MANAGED BY VARIOUS FUND HOUSES: 59
60. The amount of assets managed by AMCs varies every year. Following is the table
thatdepicts the total amount of asset managed by the well known AMCs in India. It also
showsthe ranking of AMCs for the year 2007, based on the above mentioned
parameter.FUND HOUSE JAN 2009 JAN 2008 DEC 2008Reliance MF 39,020 16,702
36,928UTI MF 37,535 25,617 38,109Prudential ICICI 34,746 22,635 33,305HDFC MF
31,425 18,591 29,635Franklin Templeton 23,908 18,153 23,403Birla Sun Life 21,190
13,797 17,054SBI MF 17,552 10,839 15,086DSP Merrill Lynch 13,440 8,976
13,517TATA MF 13,222 8,649 12,177Standard Chartered 12,746 9,480 12,629Kotak
Mahindra 12,674 7,397 12,062LIC MF 12,237 6,386 11,599HSBC 12,140 6,288
10,450Principal 10,333 6,789 10,522Figures in Rs crores 60
61. 1) Birla Sun life was the best performer in January 2007 and Rs4, 136 crore to its
assets2) Reliance MF has become the top mutual fund house in the country by adding a
very Impressive Rs2, 092 crore to assets under management3) Previous Top Fund House
UTI MF declined by Rs574 crore and lost its top position to Reliance4) SBI MF was able
to acquire 7th position by an addition of Rs2, 466 crore5) Tata MF gained Rs1, 045 crore
and able to secure its position in top 10. 61
62. BEST EQUITY MUTUAL FUNDS: (As on 27th April, 2009) Following is the
ranking of the best mutual funds and their NAVs as on 27thApril, 2009. The rankings are
based on 1 year returns of the Equity Mutual Funds available in the market.S.NO.
SCHEME NAME 1 Yr. return Present (%) NAV1 DSPML Technology.com fund-growth
47.50 26.892 UTI Banking sector fund-growth 40.05 21.473 Magnum IT 36.06 28.494

31. Birla Sun life New Millennium-Growth 35.60 21.335 Banking Bees 32.69 590.316
Prudential ICICI Technology –Growth 32.59 15.997 Prudential ICICI Services Industries
Fund – 32.07 16.02 Growth8 UTI Software – Growth 30.09 27.719 Reliance Media &
Entertainment – Growth 28.61 26.0710 Birla Sun life Frontline Equity – Growth 27.90
52.8111 Reliance Banking – Growth 27.81 39.2012 Reliance NRI Equity Fund – Growth
26.54 24.7013 Franklin InfoTech – Growth 25.95 52.6214 DBS Chola Opportunity 25.85
28.6315 Reliance Diversified Power Sector – Growth 25.16 37.71 62
63. MUTUAL FUND AT A GLANCE• A mutual fund is professionally managed firm of
collective instrument that pools money from many investors and invest it in Mutual,
bonds etc.• A mutual fund is a trust registered with securities and exchange board of
India. Value of the fundThe value of each unit of mutual fund, known as net asset
value (NAV) Formula: Net asset scheme / No. of unit outstanding METHODS OF
MUTUAL FUND • One time payment • Systematic investment plan 63
64. SYSTEMATIC INVESTMENT PLAN:• Under this a fixed sum is invested each
month on a fixed date of a month.• Payment is through post dated cheque or direct debit
facilities• The investor gets the fewer units when the NAV is high and gets the more units
when the NAV is low. 64
65. WORKING OF MUTUAL FUND 65
66. NNNNN 66
67. Objective of the study 67
68. • To study the mutual fund industry in detail.• To study the investment procedure in
detail.• To find out the market risk of sip plan.• To aware the client about mutual fund
investment.• To suggest better investment option according to market behavior to the
client.• Expansion of mutual fund investment.• To remove the past image of mutual fund
from the mind of investors.• To show the beneficiary aspect of mutual fund.• To give the
updated information to the investors about the high return and less risk fund. 68
69. Scope of the study 69
70. Scope of Mutual Funds has grown enormously over the years. In the first age of
mutualfunds, when the investment management companies started to offer mutual funds,
choiceswere few. Even though people invested their money in mutual funds as these
funds offeredthem diversified investment option for the first time. By investing in these
funds they wereable to diversify their investment in common Mutuals, preferred Mutuals,
bonds and otherfinancial securities. At the same time they also enjoyed the advantage of
liquidity. WithMutual Funds, they got the scope of easy access to their invested funds on
requirement.But, in today‟s world, Scope of Mutual Funds has become so wide, that
people sometimestake long time to decide the mutual fund type, they are going to invest
in. SeveralInvestment Management Companies have emerged over the years, who offer
various typesof Mutual Funds, Each type carrying unique characteristics and different
beneficial features. 70
71. ResearchMethodology 71
72. 1. Research Design:A research design is a pattern or an outline of a research project‟s
working. It is a statementof only the essential element of a study, those that provide the
basic guidelines for thedetails of the project. It comprises a series of prior decision that
taken together providemaster plans for executing a research projects.A research design
serves as a bridge between what has been established i.e., the researchobjectives and what
is to be done, in conduct of the study to relish those objectives. If therewere no research

32. design, the research would have only foggy notions as about what is to bedone. I have
used of „Exploratory Type‟. The research is of both qualitative as well as quantitative
type.2. Unit of Analysis: Investors Characteristics of interest: Client‟s knowledge
about Mutual Fund. 72
73. Client‟s knowledge about Reliance. Client‟s interest in getting knowledge of
Mutual Fund. Client‟s willingness to deal in Mutual Fund with Reliance. Client‟s
preference in selecting tax saving instrument of investment. Client‟s preference in
selecting dealer.3. Sources of Data: Primary Source:The primary data is collected
using sampling method and by survey using questionnaire. Secondary
Source:Secondary data includes information regarding present market scenario,
Informationregarding Mutual Funds and competitors are collected by internet, Magazines
andNewspaper and books.4. Sample Planning: Sample Size: 50 units. Sample Extent:
Kanpur city.5. Sample design: 73
74. A sample design is a definite plan for obtaining a sample from a given population. It
refersto the technique or method the researcher would adopt in selecting items for the
sample. I have used convenience sampling method6. Data collection method: I have
used survey method to collect the data. Questionnaire plan: I have used structured for
gathering the required data through contacting respondent personally7. Type of
information: I have collected facts, awareness, attitude, future action plan and reason
using questionnaire.8. Type of questions: Close ended questions for dichotomous.
Multiple choice type9. Data Analysis and Interpretation: Data analysis is based on the
data collected by way of questionnaires. The data is tabulated and frequency
distribution chart is prepared. 74
75. Use of the Project• Through this C can take the way that in which direction they
should go for promoting mutual fund.• Through this project (Awareness of Client
towards Mutual Fund) we can know about the securities market. 75
76. • We can know that how many investors are aware about the mutual fund.• We can
know that in which type of securities, people want to invest and why.• We can know that
if investors don‟t want to invest in mutual fund so what the reason behind that is.• We
can aware the investors about mutual funds beneficiary schemes.• We can know about
the market potential.• By this project we can know that, which fund is growing up and
which fund is going down.• By this we can know about the co.‟s that provide the mutual
fund investment facilities.• We can know about the Reliance Mutual fund co. and it‟s
working.• We can know about the mutual fund AMC (Asset Management Company) 76
77. Importance of the study• Mutual funds offer inexperienced and experienced
investors---who may not have a lot of money to invest---the ability to invest in more than
just one investment tool without having to monitor or manage that investment personally
and at a reduced risk. 77
78. • Every person who have no more knowledge about investment and he want to invest
anywhere so he can invest easily in mutual fund.• One of the mode to invest mutual fund
that‟s SIP (Systematic Investment Plan) is less risky to invest and every investor want to
invest in less price.• Mutual fund is totally depend upon the NAV value (Net Assets
Value)• By purchasing a combination of Mutuals, bonds and other securities--rather than
just one single Mutual purchase--their risk is spread out over many fields and companies,
instead of just one.• Purchasing into a mutual fund automatically provides the investor

33. with an experienced investment manager to oversee their investment. This is because the
mutual fund is composed of different investment securities and requires a competent
professional to oversee it from the onset.• It is one of the easiest ways of investing your
saving money 78
79. Research analysisand interpretation 79
80. MUTUAL FUND ADVISORS SUGGESTION ABOUT
INVESTMENTINTERPRETATION:Mutual fund advisor will suggest the investors to
invest in mutual fund investment morebecause it is les risky than any investment. In
mutual fund the investor can invest in sip(systematic investment plan) which is depend
upon NAV (net asset value) which is lessrisky and whenever investors want to close that
scheme they can. And it is profitablebecause its profit is based on average basis. 80
81. REASONS FOR CHOOSING ABOVEINTERPRETATION:After analysis we have
got that lots of investors want to invest just for security purpose.because most of the
investors want to secure or their money, so for holding the money theywant to invest in
somewhere so that they can safe their money for future .and a persons whohave no
knowledge about security market, they can also be invest in mutual funds. 81
82. INVESTORS WHO KNOW ABOUT THE MUTUAL FUND SERVICES
PROVIDED BY RELIANCEINTERPRETATION:After analysis we have known that
most of the investors don‟t know about the mutual fundservices which has been provided
by Reliance just because of publicity, Reliance doesn‟tshow that it provides mutual fund
services along with other services such as: pan cardservices, d.p. services, share trading
services, IPOs services etc. that‟s why most of thepeoples are unknown about the
Reliance mutual fund services. 82
83. INVESTORS INTERESTED TO INVEST IN MUTUAL
FUNDINTERPRETATION:After analysis we have seen that most of the investors are
not interested to invest in mutualfund just because of: Past image of mutual fund.
Because of unawareness. They are unaware about the mutual fund benefits. 83
They don‟t want to take risk 84. A INVESTORS WANTS TO INVEST ON WHICH
BASISINTERPRETATION: • After analysis we have got the result that most of the
investors want to invest in any securities on the basis of rate of return, when they invest
in any believable security so they expected or anticipated that they will got the expected
rate of return , 84
85. • Some people invest on the basis of safety purpose , some small investors mostly
invest their money for saving and for getting into near future • Businessman mostly
invests their money on securities just for saving the tax because invested money always is
tax free A PERSON WANTS TO TAKE INFORMATION ABOUT MUTUAL
FUNDINTERPRETATION:By above analysis we can know that most of the
clients,Persons or investors want to know about the mutual fund benefits, schemes, and
85
86. Each and every information, because now a days every persons or investors want
toGet information about everything so that on time he can utilize optimum utilizationOf
resources in a right way and could get profit. A PERSON WHO WANT TO DO THE
JOB IN RELIANCE MUTUAL FUND 86
87. INTERPRETATION: • After analysis we got that investors don‟t want to do the job
in Reliance because: • Because lots of persons have no time for joining that and there is
lack of management in each dept. of Reliance that is also be reason that persons don‟t

34. want to do job in Reliance • Some persons don‟t want just because of lack of knowledge
about investment. • Some persons don‟t want to do the job in Reliance because they don‟t
want to expand their business. • Some persons gave no answers on such issues. 87
88. A INVESTORS WHO WANT TO ATTEND THE SEMINAR PROVIDED BY
RELIANCEINTERPRETATION: 88
89. • By above evaluation we can see that some investors are interested to join the
seminar on mutual fund which has been organized by Reliance because they actually
want to know the actual situation of mutual fund that : benefits ,why this investment
exist, why they Most of the persons don‟t want to attend should invest over there.
They They have no time for such type of activities. seminar because They think that
these all are don‟t trust on mutual fund investment. rubbish thing. ON WHICH
COMPANIES THE CLIENT BELIEVES MORE 89
90. INTERPRETATION: 90
91. We all know that most of the investors or persons are interested to invest in public co.
orgovernment co. in which there is less chance to drop out the invested money while on
theother hand less of the persons are not interested to invest in private sector because
there ismore risk than public sectors.Same as we can see in the above chart that most of
the investors want to invest in relianceco. because investors has made the mind set that
we will get always the profit in investingover there while only small investors who invest
very small amount in security invest inprivate co. such as: hdfc , icici. Other. WHY THE
CLIENTS BELIEVE ONLY ABOVE CHOOSING FUND 91
92. INTERPRETATION: Most of the investors or clients want to invest in public co.
because most of the clients think that/; It is risk free means to say there is less risk to
invest in that type of funds, that is a trustworthy co. Some investors invest just because
of good return, peoples perception towards that co. is that it will never incurred loss and it
will not cheat the investors. Reliance is one of the most powerful and reputed co. even
we can say MNC co. so just because of good positioned in the market investors want to
invest over there. 92
93. CLIENTS WANT TO GET ADVISORY SERVICES FROM
RELIANCEINTERPRETATION:Investors who have already invested in mutual fund
they all want advisory services fromReliance, in advisory services; we can know NAV
(net assets value) of each fund on dailybasis.So investors want to get those services so
that they can take right decision on right time, ifhe sees that he is getting loss in investing
fund so by this services he can switch from lossfund to profitable fund. So all the
investors want to get that type of services from Reliance. 93
94. CLIENTS ATTITUDE TOWARDS DSP BLACK ROCK FUND WHICH PROVIDE
100% RETURN NOW A DAYSINTERPRETATION:We have seen that most of the
investors don‟t want to invest in dsp black rock fund, whichis international co. , they
don‟t want to invest because they know that now a days the NAVof this fund is very low
approx. (14 -15 rs.) so on this the 100% return is not so hectic forthe org. and market is
totally based upon uncertainty and always be fluctuating so he thinksthat may be
dspblack rock will not provide same return in future so the investors may getlost, so they
don‟t want to invest in this. Only those investors would like to invest in thisfund who
invests for short term. 94
95. INVESTORS WOULD LIKE TO INVEST ININTERPRETATION:We can see that
most if the investors want to invest in debt funds because there is a solidreason behind

35. this is that the debt funds provide the fixed rate of interest to the investors,there is no risk
in that type of funds for the investors.While only big investors want to invest in equity
market because equity fund provide thedividend according to performance of the org. if
there will be profit in org so investors willget the dividend otherwise they will have to
face lossThat‟s why investors want to invest in debt funds rather than equity market. 95
96. WHICH TYPE OF INSTRUMENT CURRENTLY INVESTED Now a day‟s most
of the investors want to invest in ININTERPRETATION: others funds such as: • FD‟s •
INSURANCE • Etc. 96
After that the investors 97. mostly focus on to invest in debt market just for reducing
the risk. After that they want to invest in equity market for getting more Then investors
want to invest in commodity market just for profit. saving money in near future.
Findings 97
98. 1) After getting in depth research study of Reliance, I came to know that Reliance is
not much popular as other brands operating in Kanpur city. Bajaj Allianz, HDFC, ICICI
are having much higher tapped market in respect to mutual funds.2) Reliance as an
investment option in Mutual Fund does not possess much proficiency and potential
customers in Kanpur city. Though the financial advisors advise their clients to go for
Mutual Fund as an investment option. About 42% of advisors advise their clients to
invest in Mutual Funds, followed by investing in Insurance sector.3) The advisors after
having a deep thought says that it is the Returns that make them convince their clients to
go for investment in mutual funds. 36% of advisors said that it is the Returns which make
a person to invest in Mutual Fund. Followed by Risk which is quite lesser in other
investment options.4) A huge lot of advisors showed a positive response in dealing of for
Mutual Fund. About 60% of them said that they are interested in dealing for Mutual
Funds, because that results in higher brokerage.5) As far as Reliance is concerned about
91% of the advisors said that they are not aware of the services provided by Reliance,
including Mutual Fund. 98
99. 6) When asked, 53% of advisors said that they are not interested to work with
Reliance Securities, to the contrary with they don‟t have any such expansion plans and
they have little knowledge about Reliance.7) In Kanpur city advisors don‟t have an
appropriate knowledge about Reliance as an Investment hub. Swot Analysis 99
100. A type of fundamental analysis of the health of a company by examining its
strengths(S),weakness (W), business opportunity (O), and any threat (T) or dangers it
might be exposedto. # I. STRENGTHS • Brand strategy: as opposed to some of its
competitors (e.g. HSBC), Reliance ADAG operates a multi-brand strategy. The company
operates under numerous well-known brand names, which allows the company to appeal
to many different segments of the market. • Distribution channel strategy: Reliance is
continuously improving the distribution of its products. Its online and Internet-based
access offers a combination of excellent growth prospects and its retail direct business
also saw growth of 27% in 2002 and 15% in 2003. 100
101. • Various sources of income: Reliance has many sources of income throughout the
group, and this diversity within the group makes the company more flexible and resistant
to economic and environmental changes.• Large pool of installed capacities.•
Experienced managers for large number of Generics.• Large pool of skilled and
knowledgeable manpower.• An increasing liberalization of government policies.# II.
WEAKNESS• Emerging markets: since there is more investment demand in the United

36. States, Japan and the rest of Asia, Reliance should concentrate on these markets,
especially in view of low global interest rates.• Mutual funds are like many other
investments without a guaranteed return: there is always the possibility that the value of
your mutual fund will depreciate. Unlike fixed-income products, such as bonds and
Treasury bills, mutual funds experience price fluctuations along with the stocks that make
up the fund. When deciding on a particular fund to buy, you need to research the risks
involved – just because a 101
102. professional manager is looking after the fund, that doesn‟t mean the performance
will be stellar.• Fees: In mutual funds, the fees are classified into two categories:
shareholder fees and annual operating fees. The shareholder fees, in the forms of loads
and redemption fees are paid directly by shareholders purchasing or selling the funds.
The annual fund operating fees are charged as an annual percentage – usually ranging
from 1-3%. These fees are assessed to mutual fund investors regardless of the
performance of the fund. As you can imagine, in years when the fund doesn‟t make
money, these fees only magnify losses.III. OPPORTUNITIES• Potential markets: The
Indian rural market has great potential. All the major market leaders consider the
segments and real markets for their products. A senior official in a one of the leading
company says foray into rural India already started and there has been realization that the
rural market is both price and quantity conscious. 102
103. • Entry of MNCs: Due to multinationals are entering into market job opportunities
are increasing day by day. Also India Mutual Fund majors are tie up with other financial
institutions.•# IV. THREATS• Hedge funds: sometimes referred to as as hot money, are
also causing a threat for mutual funds have gained worldwide notoriety for bringing the
markets down. Be it a crash in the currency, A stock or A bond market, A usually a hedge
fund prominently figures somewhere in the picture. 103
104. Recommendations• There is high potential market. For mutual fund investors
Kanpur city but this market need to bed explored as investors are still hesitated to invest
their money in mutual fund. 104
105. • In Kanpur city, investor has inadequate knowledge of mutual fund, so proper
marketing of various scheme is required, co. should arrange more and more seminar
about mutual fund.• Co. should also provide the knowledge of growth rate and expected
growth rate of mutual fund in India.• Reliance must be concentrate on the management of
the co. so that every work can be done in a proper way.• Reliance must be advertising its
tie up co. fund along with their features that the investors can invest in that type of fund
in Reliance.• Reliance must be provided the advice to investors about mutual fund
growing fund. 105
106. Conclusion 106
107. The awareness level of investors is low who are interested in dealing in mutual
fund:• Most of investors are totally unaware about this investment.• Very less people
knows about the service of Reliance.• Past image of mutual fund is not good.• Reliance
can promote the investors by advertising, hording, and by interviews to invest in this
fund.• Most of the investors want to invest in public co.‟s fund just because of safety
purpose.• Most of the investors want to safer side in investment.• Most of the investors
want to invest in debt funds because those are the risk free funds; it gives the interest on
investment.• Most of the investors don‟t know about the mutual funds so they want

37. advisory services from reliance which could provide them whole information about the
market situation of mutual fund. 107
108. Annexure 108
109. We assure you that all the information that will be collected from youwill remain
fully confidential and use only for study purpose.NAME:
___________________________________DESIGNATION/ADDRESS:
____________________________________________EMAIL ID:
______________________ PHONENO.:___________________ 1) As a financial
advisor which investment options you will suggest your customers: a) Shares ( ) b)
Insurance ( ) c) Mutual fund ( ) d) Fixed deposit ( ) 109
110. 2) Please indicate reason for choosing above : a) Return ( ) b) Risk ( ) c) Safety ( ) d)
Tax benefit ( ) e) Others ( )3) Do you know about the mutual fund services provided by
the Reliance : a) Yes ( ) b) No ( )4) Are you interested to invest in mutual fund : a) Yes (
) b) No ( )5) Do you invest your money on which basis : a) Return ( ) b) Safety ( ) 110
111. c) Tax saving ( ) d) Others ( )6) Do you want to collect information about mutual
fund investment: a) Yes ( ) b) No ( )7) Will you like to work in Reliance Mutual Fund
Ltd. , which deals with mutual fund : a) Yes ( ) b) No ( )8) In future will you attend the
seminar arranged by Reliance to guide the investors about mutual fund : a) Yes ( ) b) No (
)9) In which co. you believe more : 111
112. a) Hdfc b) Icici c) Reliance d) Dsp black rock e) Any other fund
_________________________10) Why you believe only such kind of fund : a) Return ( )
b) Good market position ( ) c) Risk free ( ) d) Any other reason ( )11) Do you want the
advisory services of Reliance : a) Yes ( ) b) No ( ) 112
113. 12) Now a days DSP black rock fund provides the 100 % return so do you want to
invest in this fund : a) Yes ( ) b) No ( ) c) If yes/no why ______________________13) If
you have Rs. 100 , in which of these assets classes would you like to invest : a) Equity ( )
b) Debt ( ) c) Commodities ( ) d) Derivatives ( )14) Which type of instrument are
currently invested in : a) Mutual fund (equities) ( ) b) Debt funds ( ) c) Currency &
Commodities ( ) d) Others_____________________ 113
114. Bibliography WEBSITE:• http://www.moneycontrol.com• http://www.amfi.com•
http://www.Reliance .com//v2/ 114
115. • www.amfiindia.com MAGAZINES:• S.Gopichand, the finapolis , Reliance
Mutual Fund Ltd..,volume 4 , 2010• PunithavathyPandian , Security Analysis And
Portfolio Management , Vikas Publishing House , 2001 Thank you 115
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