PROJECT REPORT ON

RELIANCE MUTUAL FUND

SUBMITTED FOR THE PARTIAL FULFILLMENT OFMASTER OF BUSINESS ADMINISTRATION

(INDUSTRY INTEGRATED)TO

MADURAI KAMARAJ UNIVERSITY

UNDER GUIDANCE OF :

SUBMITTED BY Ms. SRISHTI SHARMAPRAVEEN KUMAR M.B.A (2nd Semester) A8750123

rbsRAI BUSINESS SCHOOL

MADURAI KAMARAJ UNIVERSITY,BHOPALYEAR : 2008-2010

PREFACE

The successful completion of thisproject was a unique experience for mebecause by visiting many place andinteracting various person ,I achieved abetter knowledge about sales . Theexperience which I gained by doing thisproject was essential at this turningpoint of my carrer this project is beingsubmitted which content detailedanalysis of the research under taken byme.

The research provides an opportunity tothe student to devote his/her skills

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knowledge and competencies requiredduring the technical session.

The research is on the topic “Reliancemutual Fund ”

ACKNOWLEDGEMENT

I would like to express my appreciationand gratitude to various people who haveshared their valuable time and made

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possible this project ,through theirdirect indirect cooperation .

My honourable Mam Mrs. SwatiTiwari (HOD) and Mrs. Srishti Sharma(Faculty)Rai business School BHOPAL ,forallowing me to work on this project andprovide necessary help.

I thank my respectedfaculties ,dear friend & colleagues ,whohelp me in every possible ways , supportme and encouraged me to explore newdimensions.

PRAVEEN KUMAR MBA 2nd Semester Rai Business School Bhopal

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CERTIFICATE

This to certify that Ms. PRAVEENKUMAR,M.B.A IISemester ,Rai Business SchoolBHOPAL,Madurai Kamaraj University hasdone project on “Reliance Money “and hassuccessfully completed his project on“Reliance Mutual Fund “This report is completed under mysupervision .It is only for academicpurpose and is a bonafide work done byresearcher .

Project Guide

Mrs. Srishti Sharma

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FACULTY

Rai Business School,BHOPAL

DECLARATIONI Priyanka Asati do here by declare thatthe project work entitle on the“reliance mutual Fund in India”at Bhopalis the original work done by me .

This project report presented as apartial fulfillment requirement for thedegree of Master of Businessadministration.

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PRAVEEN KUMAR

MBA 2nd semester

Rai business School

Bhopal

CONTENTS

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1. INTRODUCTION8

2. COMPANY PROFILE15

3. COMPETITORS OF RELIANCE MONEY37

4. NEED FOR THE STUDY39

5. OBJECTIVES OF THE STUDY42

6. RESEARCH METHDOLOGY43

7. DATA ANALYSIS AND INTERPRETATION45

8. OBSERVATION51

9. FINDINGS AND SUGGESTION52

10.CONCLUSION5411.LIMITATION5512.BIBLIOGRAPHY56

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INTRODUCTION

INTRODUCTION

There are a lot of investment avenuesavailable today in the financial market

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for an investor with an invest ablesurplus. He can invest in Bank Deposits,Corporate Debentures, and Bonds wherethere is low risk but low return. He mayinvest in Stock of companies where therisk is high and the returns are alsoproportionately high. The recent trendsin the Stock Market have shown that anaverage retail investor always lost withperiodic bearish tends. People beganopting for portfolio managers withexpertise in stock markets who wouldinvest on their behalf. Thus we hadwealth management services provided bymany institutions. However they provedtoo costly for a small investor. Theseinvestors have found a good shelter withthe mutual funds.

Like most developed and developingcountries the mutual fund cult has beencatching on in India. The reasons forthis interesting occurrence are:

1. Mutual funds make it easy andless costly for investors to satisfy

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their need for capital growth, incomeand/or income preservation.

2. Mutual fund brings the benefits ofdiversification and money management tothe individual investor, providing aOpportunity for financial success thatwas once available only to a select few.

HISTORY Unit Trust of India is the firstMutual Fund set up under a separate act,UTI Act in 1963, and started itsoperations in 1964 with the issue ofunits under the scheme US-641. In 1978UTI was delinked from the RBI andIndustrial Development Bank of India(IDBI) took over the Regulatory and administrative control inplace of RBI.

In the year 1987 Public Sector bankslike State Bank of India, PunjabNational Bank, Indian Bank, Bank of

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India, and Bank of Baroda have set upmutual funds. Apart from these above mentionedbanks Life Insurance Corporation [LIC]and General Insurance Corporation [GIC]too have set up mutual fund. LICestablished its mutual fund in June1989.while GIC had set up its mutualfund in December 1990.The mutual fundindustry had assest under management ofRs. 47,004 crores.

With the entry of Private SectorFunds a new era has started in MutualFund Industry [e.g:- Principal MutualFund.]

Mutual Fund Regulations

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The second is the UTI Mutual Fund Ltd,sponsored by SBI, PNB, BOB and LIC. Itis registered with SEBI and functionsunder the Mutual Fund Regulations. Withthe bifurcation of the erstwhile UTIwhich had in March 2000 more thanRs.76,000 crores of assets undermanagement and with the setting up of aUTI Mutual Fund, conforming to the SEBIMutual Fund Regulations, and with recentmergers taking place among differentprivate sector funds, the mutual fundindustry has entered its current phaseof consolidation and growth. As at theend of September, 2004, there were 29funds, which manage assets of Rs.153108crores under 421 schemes.

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Types of MutualFunds Scheme inIndia

Wide variety of Mutual Fund Schemesexist to cater to the needs such asfinancial position, risk tolerance andreturn expectations etc. The table belowgives an overview into the existingtypes of schemes in the Industry.

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

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

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Other Schemes o Tax Saving Schemes o Special Schemes

Index Schemes Sector Specfic

ADVANTAGES OF MUTUAL FUNDS

There are numerous benefits of investingin mutual funds and one of the keyreasons for its phenomenal success inthe developed markets like US and UK isthe range of benefits they offer, whichare unmatched by most other investmentavenues.

Diversification

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The nuclear weapon in yourarsenal for your fight against Risk. Itsimply means that you must spread yourinvestment across different securities(stocks, bonds, money marketinstruments, real estate, fixed depositsetc.) and different sectors (auto,textile, information technology etc.).

Tax Benefits

Any income distributed after March 31,2002 will be subject to tax in theassessment of all Unit holders. However,as a measure of concession to Unitholders of open-ended equity-orientedfunds, income distributions for the yearending March 31, 2003, will be taxed ata concessional rate of 10.5%.

Regulations

Securities Exchange Board ofIndia (“SEBI”), the mutual funds

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regulator has clearly defined rules,which govern mutual funds. These rulesrelate to the formation, administrationand management of mutual funds and alsoprescribe disclosure and accountingrequirements. Such a high level ofregulation seeks to protect the interestof investors

Affordability

A mutual fund invests in a portfolio ofassets, i.e. bonds, shares, etc.depending upon the investment objectiveof the scheme. Azn investor can buy into a portfolio of equities, which wouldotherwise be extremely expensive.

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Features related mutual funds

Reliance was the first fund houseto launch sector funds withflexibility to invest in a range of0% to 100% in either equity or debtinstruments.

Mutual fund investments linked toan ATM/debit card aReliance innovation India’s firstlong-short fund comes fromReliance Mutual Fund .

As at 31st May 2008, more than 6.6million people had invested in

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Reliance Mutual Fund;theinvestments comprised 16% of thecountry’s entire mutual fund.

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COMPANY PROFILE OF RELIANCE

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RELIANCE INDUSTRIES LIMITED

Reliance Group Holdings has grown from a small office data-processing equipment firm in1961 into a major insurance and

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financial-services group in one generation under one chief. Reliance's insuranceoperations constitute the nation's 27th-largest property and casualty operation.The parent company also includes adevelopment subsidiary in commercialreal estate. Reliance's internationalconsulting group contains severalsubsidiaries in energy, environment, andnatural resources consulting. Afinancial arm invests in otherbusinesses, primarily televisionstations.

Reliance Insurancestarted as the Fire Association ofPhiladelphia in 1817, organized by 5hose and 11 engine fire companies. Itbecame the nation's first association ofvolunteer fire departments.

Business got a boostas a result of the GreatChicago Fire of 1871.The associationsoon developed a field of agents to

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write policies across the country. Forthe first two years, shareholdersreceived dividends twice a year of $5 ashare, which increased gradually to $10in 1876. In 1972, the Relianceinsurance group divided its pool so thatReliance Insurance Company and itssubsidiaries handled most standardlines, while United Pacific InsuranceCompany handled the nonstandard andother operations.

In 1977, the companymoved into real estate, formingContinental Cities Corporation, whichbecame Reliance Development Group, Inc.This division handled all real estateoperations of the parent company andother subsidiaries.

Reliance Capital Group,L.P. constituted the investment branchof the Reliance conglomerate.

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In December 1989, Reliance Capital soldits investment, Days Corporation, parentcompany of Days Inn of America, theworld's third-largest hotel chain; ithad been purchased in 1984. RelianceIndustries Limited. The Group'sprincipal activity is to produce anddistribute plastic and intermediates,polyester filament yarn, fibreintermediates, polymer intermediates,crackers, chemicals, textiles, oil andgas. The refining segment includesproduction and marketing operations ofthe Petroleum refinery. Thepetrochemicals segment includesproduction and marketing operations ofpetrochemical products namely, High andLow density Polyethylene.

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

Dhirubhai Ambani founded Reliance as atextile company and led its evolution asa global leader in the materials andenergy value chain businesses.

He is credited to have brought about theequity cult in India in the lateseventies and is regarded as an icon for

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enterprise in India. He epitomized thespirit 'dare to dream and learn toexcel'.

The Reliance Group is a living testimonyto his indomitable will, single-mindeddedication and an unrelenting commitmentto his goals.

RELIANCE MUTUAL FUND This groupdominates thiskey areain the financial sector..Thismegabusiness houses show that it hasassetsunder management ofRs. 90,938crore(US$ 22.73 billion) andan investorbase of over6.6 million(Source:www.amfiindia.com).Reliance’smutual fundschemes are managedbyReliance Capital AssetManagementLimitedRCAM), a subsidiary ofReliance Capital Limited,which holds93.37% ofthe paid-up capitalof RCAM. The companynotchedup a healthy growth ofRs. 16,354crore(US$ 4.09 billion)in assets under

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management in February2008 and helpedpropelthe total industry-wideAUM to Rs.565,459 crore (US$ 141.36 billion)(Source: indiainvestments.com). A sharprise infixed maturity plans (FMPs) andcollection ofRs. 7000 crore (US$ 1.75billion) through newfund offers (NFOs)created this surge. In AUrankings,Reliance continues to be in thenumberone spot.

India's Best Offering: RelianceMutual Fund

Investing has become global. Today, alot of countries are waking up to thereality that in order to gain financialgrowth, they must encourage theircitizens to not only save but alsoinvest. Mutual funds are fast becomingthe mode of investment in the world.

In India, a mutual fund company calledthe Reliance Mutual Fund is makingwaves. Reliance is considered India'sbest when it comes to mutual funds. Its

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investors number to 4.6 billion people.Reliance Capital Asset ManagementLimited ranks in the top 3 of India'sbanking companies and financial sectorin terms of net value.

The Anil Dhirubhai Ambani Group ownsReliance; they are the fastest growinginvestment company in India so far. Tomeet the erratic demand of the financialmarket, Reliance Mutual Fund designed adistinct portfolio that is sure toplease potential investors. RelianceCapital Asset Management Limited managesRMF.

Vision And Mission

Reliance Mutual Fund is so popularbecause it is investor focused. Theyshow their dedication by continuallydishing out innovative offerings andunparalleled service initiatives. It istheir goal to become respected globallyfor helping people achieve theirfinancial dreams through excellent

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organization governance and customercare. Reliance Mutual fund wants a highperformance environment that is gearedat making investors happy.

RMF aims to do business lawfully andwithout stepping on other people. Theywant to be able to create portfoliosthat will ensure the liquidity of theinvestment of people in India as well asabroad. Reliance Mutual Fund also wantsto make sure that their shareholdersrealize reasonable profit, by deployingfunds wisely. Taking appropriate risksto reach the company's potential is alsoone of Reliance Mutual Fund'sobjectives.

Schemes

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

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

The Equity/ Growth schemegive medium to long term capitalincrease. The major part of theinvestment is on equities and theyhave fairly high risks. The schemegives the investors varying optionslike, capital augmentation ordividend preference. The choices arenot deadlocked because if you wantyou may change the options later on.

Providing steady andregular income is one of theDebt/Income Scheme's primary goals.The Debt/Income scheme has in itsportfolio government securities,corporate debentures fixed incomesecurities, and bonds. returns onSector Specific Scheme are dependenton the performance of the industryat which your money is investedupon. Compared to diversified funds

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this is a lot more risky and youwill need to really give your timeon observing the market.

Although RMF is gaininggood ground in the financial market,remember that they are a risk takingbunch. They give higher profitbecause they take a lot of risks.So, if you are faint hearted, thenReliance Mutual Fund is not for you.

GROWTH OF RELIANCE MONEY THROUGHRECOGNITION

Growth through Recognition

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Reliance has merited a series of awardsand recognitions for excellence forbusinesses and operations.

Corporate Ranking and Ratings:

Reliance featured in the Fortune Global500 list of ‘World’s LargestCorporations’ for the fourth consecutiveyear.

Ranked 269th in 2007 having moved up73 places from the previous year.

Featured as one of the world’s Top200 companies in terms of Profits.

Among the top 25 climbers for twoyears in a row.

Featured among top 50 companies withthe biggest increase in Revenues.

Ranked 26th within the refining industry.

Reliance is ranked 182nd in the FTGlobal 500 (up from previous year’s284th rank).

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PetroFed, an apex hydrocarbonindustry association, conferred thePetroFed 2007 awards in thecategories of “Refinery of the Year”and “Exploration & Production -Company of the Year”.

Brand Reliance was conferred the“Bronze Award” at The BuzziestBrands Awards 2008, organized byagencyfaqs!

Institute of Economic Studies conferred the “Udyog Ratna” award inOctober 2007 for contributions to the industry.

Chemtech Foundation conferred the “Hall of Fame” in February 2008 for sterling contributions to the industry.

Chemtech Foundation conferred the “Outstanding Achievement - Oil Refining” for work at the Jamnagar Manufacturing Division.

Petroleum Federation of India conferred the “Refinery of the Year Award - 2007” to Jamnagar Manufacturing Division

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“The Plastics Export Promotion Council - PLEXCOUNCIL Export Award” in the category of Plastic Polymers for the year 2006-2007 was awarded to Reliance being the largest exporter in this category.

HEALTH:-

Jamnagar Manufacturing Division was conferred the “Golden Peacock Award for Occupational Health & Safety - 2007” by Institute of Directors.

Jamnagar Manufacturing Division was conferred the “ICC Award for Water Resource Management in Chemical Industry”.

Jamnagar Manufacturing Division was conferred the “Good House Keeping Award” from Baroda Productivity Council.

Jamnagar Manufacturing Division was conferred the “BEL-IND” Award for the best scientific paper at the

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58th National Conference of Occupational Health.

Naroda Manufacturing Division was conferred the “Safety Award and Certificate of Appreciation” presented by Gujarat Safety Council & Directorate of Industrial Safety &Health, Gujarat State for the recognition of safety performance atthe 29th State Level Annual Safety Conference.

Dahej Manufacturing Division received “BSC 5-Star” rating from British Safety Council, UK.

Dhenkanal Manufacturing Divisionreceived the “2nd Prize for LongestAccident Free Period” from theHon’ble Minister of Labour, State ofOrissa.

Hoshiarpur Manufacturing Divisionbagged the First Prize in “Safety inPunjab”, organized by Punjab SafetyCouncil.

Patalganga Manufacturing Divisionwon the “Gold Medal at CASHe (ChangeAgents for Safety, Health and

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Environment) Conference”. It alsowon the III Prize in ProcessManagement category for Presentationon Safety through Design in chemicalprocess industry in Petrosafe 2007Conference.

Kurkumbh Manufacturing Division wonthe “Greentech Safety Award silvertrophy” for outstanding achievementin safety management in chemicalsector.

Hazira Manufacturing Divisionreceived the “TERI CorporateEnvironmental Award (Certificate ofAppreciation)” for PET recyclingproject.

Nagothane Manufacturing Divisionreceived the “Shrishti G-Cube Awardfor Good Green Governance” fromMinister for Commerce and Industry, onWorld Earth Day.

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Training and Development:-

Jamnagar Refinery was adjudged thewinner of the “Golden PeacockNational Training Award -2007”.

Patalganga Manufacturing Divisionwon the “ASTD (American Society forTraining & Development) Excellencein Practice Award” for innovativepractice titled Learning Function’srole as Business partner: Empoweringpeople with Knowledge to achieveBusiness Goals.

Reliance won the CNBC TV-18 institutedJobstreet.com Jobseekers’ Employer ofChoice Award.

Energy Excellence:-

Exploration & Production (E&P)Division won “The Infraline EnergyExcellence Awards 2007: HydrocarbonColumbus Award for Excellence inPetroleum Exploration”.

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Patalganga Manufacturing Divisionwon the First Prize in “EnergyConservation in State ofMaharashtra” organized byMaharashtra Energy DevelopmentAgency (MEDA).

Jamnagar Manufacturing Division wonthe “Oil & Gas Conservation Award -2007” from the Centre for HighTechnology, Ministry of Power &Natural Gas for the excellentperformance in reduction/eliminationof steam leaks in the plant.

Jamnagar Manufacturing Division wasthe recipient of the “InfralineEnergy Award-2007” by Ministry ofPower.

Hazira Manufacturing Division wonthe Government of India EnergyConservation Award (2007) conferredby the Bureau of energy efficiencyand Ministry of Power.

Hazira Manufacturing Division wasadjudged “Excellent Energy EfficientUnit” at Energy Summit - 2007 byCII.

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Vadodara Manufacturing Divisionreceived the CII award for “Excellencein Energy Management - 2007” as energyefficient unit. This division alsoreceived the 2nd prize in “NationalEnergy Conservation Award –2007” fromBureau of Energy efficiency, Ministryof Power, Government of India.The Company’s manufacturing divisionsat Vadodara and Hazira were honouredwith CII-National award for excellencein water management - 2007 as waterefficient unit in “Within the fence”category. Additionally, HaziraManufacturing Division was honoured aswater efficient unit “Beyond theFence” category.

Quality:-

For the first time ever, globally, apetrochemical company bagged the“Deming Prize for ManagementQuality”. “The Quality Control Award

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for Operations Business Unit 2007”was awarded to the HaziraManufacturing Division forOutstanding Performance byPracticing Total Quality Management.

“QUALTECH PRIZE 2007”, whichrecognizes extraordinary results inimprovement and innovation, was wonby Hazira Manufacturing Division forits Small Group Activity Project.

Vadodara Manufacturing Division’sPolypropylene-IV (PP-IV) plant wasconferred the “Spheripol ProcessOperability Award-2006” for thehighest operability rate with an onstream factor 98.97% by M/s. BASELL,Italy.

Allahabad Manufacturing Division wonthe “Excellent Category Award” atNational Convention of Quality Circle(NCQC) - 07.

Six-Sigma:-

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Lean Six sigma project on “Reducingretention time of caustic soda lyetankers at Jamnagar” won the 1stprize in the national levelcompetition held by IndianStatistical Institute (ISI).

Patalganga Manufacturing Division’sSix Sigma Project on ImproveTransfer Efficiency for Automaticwinders in PFY won the 2nd Prize for“Best design for Six Sigma Projectin International Six SigmaCompetition” organized by IQPC(International Quality andProductivity center).

Barabanki Manufacturing Division wonthe 3rd prize in “All India SixSigma case study contest 2008” forthe Case study on “Reduction ofwaste of Plant 2 from 16% to 8%”.

Hoshiarpur Manufacturing Divisionwon the 2nd prize in “Six Sigmacompetition at National Level”organized by ISI and Quality Councilof India (in manufacturing

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category), while Dhenkanal andBarabanki Manufacturing Divisionswon the 3rd prize.

Vadodara Manufacturing Division’s SixSigma project won the 1st prize as the“Best Six Sigma project” at Nationallevel by CII.

Technology, R&D and Innovation:-

Vadodra Manufacturing Division’s R&Dbagged an award from IndianInstitute of Chemical Engineers forExcellence in Process / ProductDevelopment for the work on “Ecofriendly Process for AcetonitrileRecovery”.

“DSIR National Award for R&D Effortsin Industry (2007)” was conferred onHazira Manufacturing Division forthe Cyclehexane Recovery Project.

Patalganga Manufacturing Division’sProject titled Augmentation of ETPand use of biogas in Fired heaters

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won the “Best Innovative Project”from CII.

Reliance bagged the “InnovationAward at Tech Converge 2007” forinnovative developments in short-cutfibres.

Hazira Manufacturing Division won the“Golden Peacock Innovation Award -2007” for its Cyclohexane RecoveryProcess.

Information Technology:-

“CIO of the Year Award” for the bestIT-enabled organization in India forthe Year 2007.

“Ones to Watch - CIO - USA Award”,for figuring among the top 20organizations fostering excellencein IT team.

“The Skoch Challenger Award”conferred for the best IT Head(managing the most IT enabledorganization) of the Year 2007.

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“Best IT Implementation Award”, byPC Quest for Knowledge ManagementSystems portal (KMS).

“CIO Excellence Award” for ChemicalIndustry Information TechnologyForum for exemplary InformationTechnology implementation amongstglobal chemical companies.

“CTO Forum Hall of Fame Award” for thebest CIOs in India for not onlyproviding service to their

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PRODUCT S : RELIANCE MONEY

The products on offer from RelianceMutualFund fall into four maincategories: equity, debt,sector specificand ETF (Exchange Traded Fund).Each tapsinto a specific audience profilefulfilling their varying needs.Under theequity category, Reliance has118SUPERBRANDS sixteen schemes withReliance Growth Fundand Reliance VisionFund as its flagship schemes.RelianceEquity Opportunities Fund is aschemewhich operates in themulti-cap/multi-sectorsegment; RelianceEquity Fund is a long-shortfund,

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Reliance Quant Plus Fund is a quantfund.Reliance offers investments inbanking, power,media, entertainment andpharmaceuticals;Reliance Tax Saver Fundand Reliance Equity-Linked Savings Fund– Series 1 are tax saving schemes; anNRI-dedicated equity scheme istailored for non-resident Indians.RelianceRegular Savings Fund is anasset-allocation fund with threeoptions.Under the debt and liquidcategories, Reliancehas liquid funds,liquid plus funds, income funds,an NRI-dedicated debt fund, gilt funds,fixedmaturity plans and an intervalfund.In the hybrid category, RelianceMonthlyincome Plan is a popular option

Reliance understands thatinvestments in mutual fundshare afunction of knowledge dissemination andawareness of products amongst potentialinvestors. In building its ownbase ofassets under management it willnecessarily have to carry the entiremutual fund

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industry.Towards this end Reliance haslaunched a t wo-pronged initiative.Inthe first pincer it has createdaformidable network of 26,000distributors including some ofthebiggest names in the bankingsector.This who’s who of the financialindustry comprises such giantsasCitibank, Standard Chartered,HSBC,ICICI, AXIS, Bank of Baroda,Central Bank of India, Allahabad Bankandfund houses such as JM, DSP MerrillLynch and Karvy in addition to a massiveinfrastructure of direct financialinvestment officers. Thisprodigiouseffort is supplemented by thebrands’captive network of 120 branch officesand 30 financial centres. In the secondprong, Reliance has created a series ofinformationpacked presentations whichhelp dispel misinformationGroup.Thismega business house dominates this keyarea in the financial sector.Figures forMarch 2008 show that it has emerged asthe top Indian mutual fund with averageassets under management of Rs. 90,938

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crore (US$ 22.73 billion) and aninvestor base of over 6.6 million(Source:www.amfiindia.com). Reliance’s mutual fund schemes are managed byRelianceCapitalAssetManagementLimited(RCAM), a subsidiary of Reliance CapitalLimited,which holds 93.37% of the paid-up capitalof RCAM.The company notchedupa healthy growth ofRs. 16,354 crore (US$4.09billion)inassetsunder management inFebruary2008 and helped propelthe totalindustry-wideAUM to Rs. 565,459crore(US$ 141.36 billion) (Source:indiainvestments.com). A sharp riseinfixed maturity plans(FMPs)andcollection of Rs. 7000 crore(US$ 1.75 billion) through new fundoffers (NFOs) created this surge.InAUMrankings, Reliance continues to bein thenumber one spot.

Reliance was the first fund house tolaunch sector funds with flexibility toinvest in a range of 0% to 100% ineither equity or debt instruments Mutual

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fund investments linked to anATM/debitcard are a Reliance innovationIndia’sfirst long-short fund comes fromReliance Mutual Fund As at 31st May2008, more than 6.6 million people hadinvested in Reliance Mutual Fund;theinvestments comprised 16% of thecountry’s entire mutual fund asset base.

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Achievements

In two successive joint surveys by TheEconomic Times’ Brand EquityandACNielsen, Reliance was recognised asIndia’s Most Trusted MutualFund.Thecompanyalsowalked away withseven other scheme prizes – five of thembeing outright winners – in the Gulf2007 Lipper Awards.These included theFund House of the Year by Lipper GCC aswell asICRA Online and the MostImproved FundHouse by Asia AssetManagement.It also received the NDTVBusiness Leadership Award 2007 in themutual fund category and runners’ uprecognition as the Best Fund House intheOutlook Money-NDTV Profit Awards. Inaddition,the company received thecovetedCNBC Web18 Genius of the Web distinction

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for the Best Mutual Fund Website inthecountry. RCAM was awarded the IndiaOnshore Fund House 2008 instituted bytheAsian Investor magazine.The companyalso won the India Equities award in the5-yearPerformance category.

COMPARATIVE STUDY OF MUTUAL FUND

Major competitior of Reliance Money

Company Profile of HDFC HDFC BANK is one of the leadingDepository Participant (DP) in thecountry with over 8 Lac demat accounts.

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HDFC Bank Demat services offers you asecure and convenient way to keep trackof your securities and investments, overa period of time, without the hassle ofhandling physical documents that getmutilated or lost in transit.

HDFC BANK is Depository particpant bothwith -National Securities DepositoriesLimited (NSDL) and Central DepositoryServices Limited (CDSL).

Features & Benefits

As opposed to the earlier form ofdealing in physical certificates withdelays in transaction, holding andtrading in Demat form has the followingbenefits :

Settlement of Securities traded onthe exchanges as well as off markettransactions.

Shorter settlements therebyenhancing liquidity.

Pledging of Securities.

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Electronic credit in public issue. Auto Credit of Rights / Bonus /Public Issues / Dividend creditthrough ECS.

Auto Credit of Public Issue refundsto the bank account.

No stamp duty on transfer ofsecurities held in demat form.No concept of Market Lots.Change of address, Signature,

Dividend Mandate, registration of powerof attorney, transmission etc. can beeffected across companies held in dematform by a single instruction to theDepository Participant (DP).

Secured & easy transaction processing

HDFC Bank Ltd provides convenientfacility called 'SPEED-e' (Internetbased transaction) whereby accountholder can submit delivery instructionselectronically through SPEED-e website(https://speed-e.nsdl.com). SPEED-eoffers secured means of transactionprocessing eliminating preparation of

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instruction slips and submission of thesame across the counter to thedepository participant. The 'IDEAS'facility helps in viewing the currenttransactions and balances (holdings) ofDemat account on Internet on real timebasis.

Company Profile of ICICI

ICICIDirect (or ICICIDirect.com) is stocktrading company of ICICI Bank. Along withstock trading and trading in derivatives inBSE and NSE, it also provides facility toinvest in IPOs, Mutual Funds and Bonds.Trading is available in BSE and NSE

ICICIDirect offers 3 different online tradingplatforms to its customers

1. Investment Account

Along with stock trading and IPOinvesting in BSE and NSE, Wise Investmentaccount also provide options to invest inMutual Funds and Bonds online.

Online Mutual funds investment allowsinvestor to invest on-line in around 19Mutual Fund companies. ICICI Direct

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offers various options while investing inMutual Funds like Purchase Mutual Fund,Redemption and switch between differentschemes, Systematic Investment plans,Systematic withdrawal plan andtransferring existing Mutual Funds in toelectronic mode. This account alsoprovides facility to invest in Governmentof India Bonds and ICICI Bank Tax SavingBonds.ICICIDirect.com website is the primarytool to invest in Mutual Funds, IPOs,Bonds and stock trading.

Reliance MoneyTax Saving funds Reliance Money:

Tax-saving funds (due totheir equity-oriented nature) arecapable of clocking far superior returnstheir assured return counterparts likeNational Savings Certificate (NSC) andPublic Provident Fund (PPF). Howeverinvestors must appreciate that the riskprofile of tax-saving funds tends to beproportionately higher.

Reliance Tax Saver (ELSS) Fund(RTSF) is the latest entrant in the tax-

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saving funds segment. Flagshipdiversified equity funds (RelianceGrowth Fund and Reliance Equity Fund)from Reliance Mutual Fund have emergedas top performers in their segmentacross time horizons. However investorsshould note that these funds are managedaggressively; also they have displayedan opportunistic streak by movingfluidly across market segments (largecaps, mid caps) to clock superiorgrowth. RTSF is likely to be a similar(high risk - high return) investmentproposition within the tax-saving fundssegment.

SYSTEM INVESTMENT PLAN

SIP is a way of investing inMutual Funds. It is designed for thoseinvestors who are willing to investregularly rather than making a lump suminvestment. It is just like a recurringdeposit with the post office or bankwhere we deposit some amount every

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month. The difference here is that theamount is invested in a mutual fund.Mutual Fund makes investment accordingto their objective .They collect fundfrom investor and invests it. Every fundhas an objective and pattern ofinvesting. There are various kinds ofmutual funds. There are equity funds anddebt funds. Further equity funds can bedivided into equity diversified mutualfund where funds are invested in sharesof different companies , sectoral fundswhere investment is made in shares ofsome particular sector like FMCG, IT,Auto, Oil & Gas, Banking etc. Every fundhas a NAV (net asset value) which is thevalue per unit. It is calculated as thetotal asset is divided by the number ofoutstanding units. As the value of assetchanges, nav also changes.

The best way to invest in stock marketis mutual fund through SystematicInvestment Plan. But to get the benefitof an SIP, a long term horizon is must.

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OBJECTIVE

To give a brief idea about the benefitsavailable from mutual Fundinvestment.

To give an idea of the types of schemesavailable.

Explore the recent developments in themutual funds in India

To give an idea about the regulations ofmutual funds.

To analyze reliance mutual fund strategyagainst its competitor.

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RESEARCH METHODOLOGY

Research as a care full investigation orenquiry specially through search for anew facts in any branch of knowledge”Research is an academic activity andsuch as the term should be used intechnical sense.The manipulation ofthings , concepts or symbols for thepurpose of generalizing toextend ,correct or verifyknowledge ,whether that knowledgethrough objective.

TYPES OF RESEARCH

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ANALYTICAL RESERCH

In this project work, analyticalresearch is used. In this project has touse facts or information .Already usedavailable ,and analyze these to make acritical evolution of the material.

METHODS OF DATA COLLECTION

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

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

Secondary data:Secondary data means already available through books ,journals , magazines ,newspaper.

TOOLS OF ANALYSIS

For the proper analysis of data Quantitative Technique such as percentage method was used.

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DATA ANALYSIS AND INTERPRETATION

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

Co mpany Name Persentages of respondents

Reliance Money 25HDFC 10ICICI 15

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

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

Company Name Percentage of respondent

Reliance 22HDFC 21ICICI 7

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

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

respondentReliance 20HDFC 15ICICI 15

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

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

respondentReliance 18HDFC 16ICICI 16

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

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

respondentReliance 22HDFC 15ICICI 13

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

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Represent by pie chart

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OBSERVATION

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

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

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

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

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

FINDINGS AND SUGGESTION

In Equity Schemes we have takenReliance Vison Fund and Reliance growthFund . Both schemes are open ended butReliance Growth fund is more valuablefor Reliance Mutual Fund than reliance

vision Fund.

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In Dedt scheme we have taken Reliancemoney Manager Fund and Reliance LiquidtyFund .In it boths schemes are open endedbut reliance money manager is morebeneficial for reliance mutual fund .

In sector specific scheme we have takenReliance media and entertainment fundand Reliance Pharma fund scheme both is more efficient for RelianceMutual Fund.

Above all the schemes of Reliance MutualFund Debt schemes are best schemes forMutual Fund .

There is a Good investment plan andsaving scheme in reliance Mutual Fund.

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SUGGESTION

Reliance Money have to add someextra features in it with aggressivemarketing promotional strategy.

Advertisement on television is themain source of attraction so thecompany must advertise its productsheavily.

Product must be improved . There should be provision ofcomplain suggestion boxes at eachbranch.

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CONCLUSION

Mutual Fund investment is better thanother raising fund .Reliance Mutual Fund have good returnsin investment .

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

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

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Limitations

• The time constraint was one of the major problems.• The study is limited to the different schemes available under the mutual fundsselected. • The study is limited to selected mutual fund schemes.• The lack of information sources for the analysis part.

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BIBLIOGRAPHY

Websites:www.reliancemoney.comwww.hdfc.comwww.icicidirect.com

Referencebooks: •FINANCIAL INSTITUTIONS AND MARKETS - L.M.BHOLE•INVESTMENT MANAGEMENT - V.K.BHALLAResearch Methodology - Kothari

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QUESTIONNAIRQ.1 Which banking mutual fund do you prefer for mutual Fund ?

Reliance Money HDFC ICICI

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

Reliance Money HDFC ICICI

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

Reliance Money HDFC ICICI

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

Reliance Money HDFC ICICI

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

Reliance Money HDFC ICICI

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