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A

Major Project Report

Subject Code: 536422(36)

On

THE CUSTOMERS PERCEPTION TOWARDS OTHER ADVANCE

PRODUCT FROM SBI CREDIT CARDS AT RAIPUR

Submitted for partial fulfillment of requirement for the award of degree

Of

Master of Business Administration

Of

CHHATTISGARH SWAMI VIVEKANAND TECHNICAL UNIVERSTY

BHILAI (C.G.)

Session 2009-11

Guided by: Submitted by:

Dr. R.K Agarwal Amaan khan

Professor 5053609014

Department of Management Enroll No.AC 6599

DIMAT MBA-IV Sem B

DEPARTMENT OF MANAGEMENT

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY

(Disha Education Society)

Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud,

Raipur (C.G.) 492001

DECLARATION

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I the undersigned solemnly declare that the report of the project work

entitled Awareness of Reliance Mutual fund in India, is based on my own

work carried out during the course of my study under the supervision of

Dr. R.K.Agrawal

I assert that the statements made and conclusions drawn are an

outcome of the project work. I further declare that to the best of my

knowledge and belief the project report does not contain any part or any

work which has been submitted for the award of any otherdegree/diploma/certificate in this University or any other University.

_______

__________

__

(Signature of the Candidate)

Amaan khan

Roll No.:5053609014

MBA IV sem secB

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CERTIFICATE BY GUIDE

This is to certify that the report of the project submitted is the outcome of the

project work entitled Awareness of Reliance Mutual fund in India carried

out by Amaan khan bearing Roll No.5053609014 under my guidance and

supervision for the award of Degree in Master of Business Administration of

Chhattisgarh Swami Vivekanand Technical University, Bhilai (C.G), India.

To the best of my knowledge the report

i) Embodies the work of the candidate him.

ii) Has duly been completed,

iii) Fulfils the requirement of the ordinance relating to the MBA degree

of the University and

iv) Is up to the desired standard for the purpose of which is submitted.

_______________________

(Signature of the Guide)

Name: Dr. R .K . Agrawal

Designation: Faculty of Management

Department: Management

Disha Institute of Management and Technology

Raipur(C.G)

The project work as mentioned above is hereby being recommended and

forwarded for examination and evaluation.

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CERTIFICATE BYTHE EXAMINERS

This is to certify that the project entitled

Awareness of Reliance Mutual fund in India

Submitted by

Amaan khan Roll No.5053609014 Enrollment No.AE6599

Has been examined by the undersigned as a part of the examination for the

award of Master of Business Administration degree of Chhattisgarh Swami

Vivekanand Technical University, Bhilai (C.G.).

__________________ _____________________

Name & Signature of Name &Signature of

Internal Examiner External Examiner

Date: Date:

Forwarded by

Academic Head

Department of Management

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ACKNOWLEDGEMENT

DAY BY DAY IN EVERY WAY I AM GETTING BETTER AND BETTER

This is a sentence that has virtually transformed my life, sending me on a path of constant and

never ending improvement. As I am preparing my research report on Awareness of

Reliance Mutual fund in Indiaa number of people who have been my teachers come

to my mind and whom I wish to thanks.

First and foremost it will be my parents my mother Smt ZAIBUNISHA BEGUM

who has been an internal inspiration and made her life a work of art. My father DR.H.U

KHAN, for being a consultant, a partner, a friend, a philosopher and a guide - all at the

same time.

My profound gratitude to Dr. R.K.Agrawal (Faculty of Management, DIMAT),

for their guidance during this entire report. Every meeting with them was a lesson of a

lifetime. Also the teachers of DIMAT for setting new standards in teaching and supporting

me always and in all ways.

May every thought in my mind find a perfect word in this report!

And may every word in this report find a perfect thought in your mind!

AMAAN KHAN

MBA, SEM-IV

Div-B

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Table of Contents

Chapter TitlePage No.

I Introduction 8 - 45

HISTORY OF MUTUAL FUND

II RESEARCH AND METHODOLOGY

46-54

III PRODUCT PROFILE

55-65

3.1.1 SIP OF RELIANCE MUTUAL FUND

IV DATA ANALYSIS AND INTERPRETATION

66-81

V QUESTIOANNAIRE

82-85

Bibliography and webloigraphy 86-

90

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8

Chapter I

Introduction


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INTRODUCTION

MUTUAL FUND? WHAT IS IT?

Weve allheard this term somewhere, especially in advertisements, through those whoclosely follow share markets, or even somewhere in the newspapers, mentioned in depthsof articles on investment.

Mutual Funds essentially collect money from many investors, which are then

invested by professional investors.

A mutual fund is created when investor put their money together. It is therefore a pool of

the investors fundsand is invested according to certain investment objectives.

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The term MUTUAL means that investors contribute to the pool and also benefit from

the pool. There are no other claimants to funds. The pool of funds help mutually by

investors is the mutual fund.

A mutual fund business is to invest the funds thus collected according to the wishes of the

investors who created the pool the investor appoints professional investment mangers, to

mange their funds.

These investments could be in instruments such as SHARES andBONDS.

The investor participates in the invested instruments gains and losses in an amount

proportionate to his/her investment.

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DIAGRAMMATIC REPRESENTATION

OF

MUTUAL FUND

11

POOL

OF

MONEY

INVESTO

RD

INVESTORCINVESTO

R B

CC

INVESTO

R A

POOL OF

MONEY IS

MANAGED

BY AMC


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HISTORY OF MUTUAL FUNDS

History of Mutual Funds has evolved over the years and it is sure to appear as something

very interesting for all the investors of the world. In present world, mutual funds have

become a main form of investment because of its diversified and liquid features. Not only

in the developed world, but in the developing countries also different types of mutual

funds are gaining popularity very fast in a tremendous way. But, there was a time when

The concept of Mutual Funds was not present in the economy.

According to some historians, the mutual funds were first introduced in

Netherlands in 1822. But according to some other belief, the idea of Mutual Fund first

came from a Dutch Merchant ling back in 1774. In 1822, that idea was further developed.

In 1822, the concept ofInvestment Diversification was properly incorporated in the

mutual funds. In fact, the Investment Diversification is the main attraction of mutual funds

as the small investors are also able to allocate theirlittle Funds in a diversified way tolowerRisks.

The modern day mutual funds came into existence in 1924, in Boston.

Massachusetts Investors Trust introduced the Modern Mutual Funds and the funds were

available from 1928. At present this Massachusetts Investors Trust is known as MFS

Investment Management Company. After the glorious year of 1928, Mutual fund ideas

expanded to different levels and different regulations came for well functioning of the

funds.

Still today, the funds are evolving and improving in order to offer people much wider

choices and better advantages for fulfillment of their various investment needs and

financial objectives.

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FEATURES OF MUTUAL FUND

1) A mutual fund actually belongs to the investors who have pooled their funds. The

ownership of the mutual fund is in the hand of the investors.

2) A mutual fund is managed by investment professionals and other service

providers who earn a fee for their services from the fund.

3) The pool of funds is invested in a portfolio of marketable investments. The value

of the portfolio is updated every day.

4) The investors share in the fund is denominated by UNIT. The value of the unit

changes with changes in the portfolio value every day the value of the unit of

investment is called as the Net Assets Value or NAV.

5) The investment portfolio of the fund is created according to the stated investment

objectives of the fund.

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WORKING CYCLE

OF

MUTUAL FUND COMPANIES

14

MUTUAL

FUND

RETURNS

INVESTORS

SHARES,

BONDS AND

OTHER

SECURITIES


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REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA.

The structure of mutual fund in India is governed by SEBI (MUTUAL FUND)

regulations 1996. These regulations make it mandatory for mutual funds to have a three-

tier structure of SPONSOR-TRUSTEE-ASSET

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CONCEPT AND ROLE OF MUTUAL FUNDS:A Mutual Fund is common pool of money into which Investor place their contributions

that are to be invested in accordance with a stated objective. The ownership of the Fund is

thus joint or mutual; the fund belongings to all investors.

A single investors ownership of the fund is in the same proportion as the amount of the

contribution made by him or her bears to the total amount of the fund.

A Mutual fund uses the money collected from investors to buy those assets, which are

specifically permitted by its stated investment objective. Thus, an Equity Fund would buy

mainly Equity assets-ordinary shares, preference shares, warrants etc. A bond fund would

mainly buy debt instruments such as debentures, bonds or government securities. It is

these assets, which are owned by the investors in the same proportions as there

contribution bears to the total contribution of all investors put together.

When an investor subscribes to a mutual fund, he or she buys a part of these assets or

the pool of funds that are outstanding at that time. Its no different from buying shares

of a joint stock company, in which case the purchase makes the investor a part owner of

the company and its assets. In fact, in the USA, a Mutual fund is constituted as an

investment company and an investor buys into the fund, meaning he buys the shares of

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the fund. In India, a mutual fund is constituted as a Trust and the investor subscribes to the

units issued by the fund, which is where the term unit Trust comes from.

TYPES OF MUTUAL FUND SCHEMES:

Schemes floated by the various mutual funds are essentially of two types, namely open-

ended and close-ended. The basic characteristics of these two types of mutual fund

schemesaregivenbelow:

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OPEN ENDED SCHEMES:

Open-ended schemes are available for subscription all the year round excluding the period

of book-closing. They may or may not have a specified redemption period. The sale and

repurchase prices are fixed by the mutual fund concerned from time to time. Repurchases

are generally allowed al specified rated. Each open-ended scheme must have a minimum

corpus of Rs.50 crore. In case the fund manager is not able to rise this amount at the time

of issue, or 60 % of the targeted amount whichever is higher, the entire subscription must

be returned to the investor.

CLOSE-ENDED SCHEMES

These are open for subscription only during a specified period. Generally the redemptiondates are also specified when the investor can redeem their units. The duration of this

scheme varies: normally it is 5-7 years. Repurchase during the intervening period may or

may not be allowed. Some of the schemes though have a repurchase facility after a certain

period. Many of these schemes are listed in stock exchanges, except for some of the close-

ended income schemes.

New shares are rarely issued after the fund is launched; shares are not normally

redeemable for cash or securities until the fund liquidates. Typically an investor can

acquire shares in a closed-end fund by buying shares on a secondary market from a

broker, market maker, or other investor -- as opposed to an open-end fund where all

transactions eventually involve the fund company creating new shares on the fly (in

exchange for either cash or securities) or redeeming shares (for cash or securities).

The price of a share in a closed-end fund is determined partially by the value of the

investments in the fund, and partially by the premium (or discount) placed on it by the

market. The total value of all the securities in the fund divided by the number of shares in

the fund is called the net asset value, often abbreviated NAV. The market price of a fund

share is often higher or lower than the NAV: when the fund's share price is higher than

NAV it is said to be selling at a premium; when it is lower, at a discount to the NAV

19
http://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Net_asset_valuehttp://en.wikipedia.org/wiki/Net_asset_valuehttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stock_brokerhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Net_asset_valuehttp://en.wikipedia.org/wiki/Cash


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EQUITY ORIENTED SCHEMES:

These schemes, also commonly called Growth Schemes, seek to invest a majority of their

funds in equities and a small portion in money market instruments. Such schemes have the

potential to deliver superior returns over the long term. However, because they invest in

equities, these schemes are exposed to fluctuations in value especially in the short term.

Equity schemes are hence not suitable for investors seeking regular income or needing to

use their investments in the short-term. They are ideal for investors who have a long-term

investment horizon. The NAV prices of equity fund fluctuates with market value of the

underlying stock which are influenced by external factors such as social, political as well

as economic.

DEBT BASED SCHEMES:

These schemes, also commonly called Income Schemes, invest in debt securities such as

corporate bonds, debentures and government securities. The prices of these schemes tend

to be more stable compared with equity schemes and most of the returns to the investors

are generated through dividends or steady capital appreciation. These schemes are ideal

for conservative investors or those not in a

Position to take higher equity risks, such as retired individuals. However, as compared to

the money market schemes they do have a higher price fluctuation risk and compared to a

Gilt fund they have a higher credit risk.

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IMPORTANT TERMS OF MUTUAL FUNDS

Net asset value

The net asset value, or NAV, is the current market value of a fund's holdings, (usually

expressed as a per-share amount. For most funds, the NAV is determined daily, after the

close of trading on some specified financial exchange, but some funds update their NAV

multiple times during the trading day. Open-end funds sell and redeem their shares at the

NAV, and so process orders only after the NAV are determined. Closed-end funds (the

shares of which are traded by investors) may trade at a higher or lower price than their

NAV; this is known as a premium or discount, respectively. If a fund is divided into

multiple classes of shares, each class will typically have its own NAV, reflecting

differences in fees and expenses paid by the different classes.

Some mutual funds own securities which are not regularly

traded on any formal exchange. These may be shares in very small or bankrupt

companies; they may be derivatives; or they may be private investments in unregisteredfinancial instruments (such as stock in a non-public company). In the absence of a public

market for these securities, it is the responsibility of the fund manager to form an estimate

of their value when computing the NAV. How much of a fund's assets may be invested in

such securities is stated in the fund's prospectus.

UNIT:

Unit means the interest of unit holders in scheme each unit represent one undivided share

in the assets of a scheme. The value of each unit change depending on Performance of the

fund.

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ENTRY LOAD:

The load charge at the time of investment is known as entry load. It is meant to cover the

Cost that the AMC spend in the process of Acquiring subscribers commission payable to

brokers, advertisement, registrar Expenses etc. The load is recovered by the Way of

charging a scale price higher than the prevailing NAV for

Ex...

If entry load is 5% and NAV of fund is 10Rs/unit.

Selling price= 10/ (1-0.05) =10.526

EXIT LOAD:

Some AMC dont charge on entry load but they charged on exit load They deduct load

before paying out the redemption proceeds psychologically ,investors are much more

willing to pay exit load as compared to entry load because they are paying after they have

obtained the service.

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THE FIVE MOST COMMON MISTAKES MUTUAL FUND

INVESTORS MAKE

Failing to stay invested for a longer period

Worrying about portfolio turnover or dividends it pays

Being affected by new in the market when youre supposed to be investing for the

long term

Selling out during bad markets

Being impatient and losing confidence too soon.

INVESTORS THINK LONG TERM BUT ACT SHORT TERM..

Time in the market is more important than timing the market

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Major Mutual Fund Companies in India

1)ABN AMRO Mutual Fund

2) Birla Sun Life Mutual Fund

3) Bank of Baroda Mutual Fund

4) HDFC Mutual Fund

5) HSBC Mutual Fund

6) ING Vysya Mutual Fund

7) Prudential ICICI Mutual Fund

8) Sahara Mutual Fund

9) State Bank of India Mutual Fund

10) TATA Mutual Fund

11) Kotak Mahindra Mutual Fund

12) UTI Mutual Fund

13) Reliance Mutual Fund

14) Standard Chartered Mutual Fund

15) Franklin Templeton India Mutual Fund

16) Morgan Stanley Mutual Fund India

17) Escorts Mutual Fund

18) Alliance Capital Mutual Fund

19) Benchmark Mutual Fund

20) Canbank Mutual Fund

21) Chola Mutual Fund

22) LIC Mutual Fund

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5 Easy Steps to Invest in Mutual Funds

1)Search: Where to look for if we want to invest in MF

a) Contacting an Investment advisor in a bank or a brokerage house or an Independent

Financial Advisor is the first step to gathering information.

b) Mutual funds units can also be bought over the Internet.

c) Mutual funds are much like any other product, in that there are manufacturers who

provide the product and there are dealers who sell them.

2) Evaluation: Evaluation: choosing the right mutual fund for you

As an investor one may

a) For the short term or long term want to invest

b) Want regular income or growth

c) Want to target lower risk or higher returns

d) Be convinced of a particular sector and want to invest in it

3) Purchase:

a) Systematic Investment Plan (SIP):Allows you to save a part of your income

regularly. Also used to reduce risk when investing in schemes targeting aggressive

growth.

b) Systematic Withdrawal Plan (SWP):Allows you to withdraw a part of your

investment regularly. Used when you want to withdraw your investment for a specific

regular payment, like insurance premium payments of monthly/quarterly frequency.

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c) Automatic debit:Saves the hassle of writing a cheque when making an

investment. Your account is debited automatically for the amount invested.

d) Dividend Plan:

A) Dividend Payout: Under this plan investor can redeem his/her dividend at

specific times

.B) Dividend Reinvestment: Under this plan investors dividend is reinvested

back to its principal amount which therefore increases the number of units

investor is holding.

e) Growth:Under this plan income generated from investment will put back to its

invested amount which therefore increases the value of each unit customer is holding.

4) Post Purchase Monitoring:

Once you have invested in an ongoing fund, expect a period of two to three days before

you receive an account statement on the address mentioned by you in your application

form.

a) The Account Statement

Your account statement indicates your current holding in the scheme that you have

invested.

b) The transaction slip:The transaction slip at the end of the account statement can

be used for additional purchases, redemptions or to intimate the mutual fund on any

change in bank mandates/address.

c) NAV:The NAVs of all the open-ended schemes are published at the fund's website,

financial newspapers and AMFI (Association of Mutual Funds) web-site

www.amfiindia.com.

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5) EXIT:

Every AMC advice that every investor should monitor his/her units NAV

periodically but AMC also recommend their unit holders to not get swayed by

short term considerations in deciding their exit.

Redemption: In case of open ended funds investor can redeem his/her invested

amount. Most funds take 1-3 days to credit your account with your redemption

proceeds.

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Who Can Invest In Mutual Funds In India?

Mutual funds in India are open to investment by:

Residents including

1) Resident Indian Individuals

2) Indian Companies

3) Indian Trusts/Charitable Institutions

4) Banks

5) Non-Banking Finance Companies

6) Insurance Companies

7) Provident Funds

Non Residents including

1) Non-Resident Indians, and

2) Overseas Corporate Bodies (OCBs) and

Foreign entities, viz;

1) Foreign Institutional Investors (FIIs) registered with SEBI. Foreign

citizens/ entities are however not allowed to invest in Mutual funds in India.

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Industry Profile

ABOUT MUTUAL FUND INDUSTRY

Mutual Funds are financial intermediaries which pool the savings of numerous

individuals and invest the money, thus related in a diversified portfolio of securities,

including equity, bonds debentures and other money market instruments, thus

spreading and reducing risk. The objective of mutual fund is to maximize the return to

the investor who participates in equity indirectly through mutual funds.

Even though the mutual fund industry grown in asset value from Rs.7000 Crores to 2,

00,000/- Crores today, this is just the tip of the iceberg. According to most Fund

Managers, the real boom is yet to come.

The sum of Rs.2, 00,000/- Crores represents just 3% - 4%

of the total market capitalization of 25, 00,000 Crore. This compares poorly with the US,

where the mutual funds have nearly $ 6.8 billion of market capitalization of roughly

Rs.70000 Crore, barely 3% - 4% of total market capitalization.

This is not expected, because mutual fund history in India, which dates back to 1964,

when the first open-ended mutual fund scheme Unit-64 was launches by Unit Trust of

India, is still dominated by it. The focus initially was income earning securities, with only

20 % of the Corpus going into equity. The early 80s saw other schemes like the growing

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income, fixed income, and monthly income being introduced by the UTI. Bit it was only

in 1986 that the first pure Growth equity scheme Master share was launched.

1989-90 was another landmark year in the history of mutual funds. For the fist time, themonopoly of UTI over the industry was broken. The government allowed public sector

banks and insurance companies to enter this sector to bring in some competition.

But it was only in 1993, when the private sector was given the green signal to float mutual

funds, that excitement and competition came. Not only did the Government allowed

Indian companies to float mutual funds, it even allowed foreign funds to set in shop in

India and float funds. Thus, in one stroke, this sector was truly privatized.

Today there are about 12-14 private players in the market including foreign funds such as

Morgan Stanley, besides the nine public sector players and UTI. Together, these funds

have mobilized around Rs.6500 Crore from the market. The collections could have been

better, had not the public sector funds been busy complying with the SEBI guidelines

pertaining to the formation of asset management companies etc.

But the best is yet to come. A number of companies have plans to float mutual funds at

various stages of implementation. Some of the major names which are likely to come tothe market are Tata Sons in collaboration with Kleinwort Benson, ITC Classic with

Thread needle UR, Oppenheimer of US, plus a host of others. And according to

conservative guesstimates, mutual funds are set to collect over Rs.10000 Crore from the

market this year. The reason for such confidence is that with SEBI firm about the small

investor taking the mutual fund route to investments in the stock market, and the

regulatory changes making it much more difficult to get allotments in primary markets;

small investors will not be left with many opportunities.

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Mutual Fund Industry in India

The mutual fund industry in India came into being in 1963 with the

setting up of the Unit Trust of India (UTI). In 1987, Public Sector Banks and Insurance

Companies opened their own mutual funds, thus starting the second phase in the growth

of the mutual funds industry. By the end of 1988, the industry's total assets under

management (AUM) reached Rs.67 billion. The industry registered a major milestone in

1993 when the first private sector player, the erstwhile Kothari Pioneer Mutual Fund (now

merged with Franklin Templeton), was set up. Since then, several international players

have also entered the fray. The industry has also witnessed a spate of mergers and

acquisitions, the most recent ones being the acquisition of Alliance Mutual by Birla Sun

Life, GIC Mutual by Canbank Mutual, and Sun F&C by Principal Mutual. While the

Indian mutual fund industry has grown in size by about 320% from March, 1993 (Rs470

billion) to December, 2004 (Rs1505 billion) in terms of AUM, the AUM of the sector

excluding UTI has grown over 8 times from Rs.152 billion in March 1999 to Rs.1295

billion as at December 2004.The latest phase in the industry's evolution began with the

bifurcation of UTI. The Indian mutual fund industry has grown by about 4.2 times from

1993 (Rs.470 billion) to 2005 (Rs.1992 billion) in terms of AUM. The private sector was

allowed entry to set up asset management companies in 1993. There was a brief period of

five years during which the asset growth was slow. The AUM for the mutual fund

industry started to grow rapidly after 1998. Between 1998 and 2005 the AUM of the

sector excluding UTI grew by over 15 times from Rs.114 billion in 1998 to Rs.1738

billion as at 2005. Though India is a minor player in the global mutual funds industry, its

AUM as a proportion of the global AUM has steadily increased, doubling from 1999

levels.

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TREND IN MUTUAL FUND INDUSTRY.

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ASSETS UNDER MANAGEMENT-JUNE - 2010

MUTUAL FUNDS AMU(Rs.CR)

1. ABN AMRO Mutual Fund 679100.472. AIG Global Investment Group Mutual

Fund 380887.45

3. Baroda Pioneer Mutual Fund 5953.67

4. Benchmark Mutual Fund 264180.76

5. Bharti AXA Mutual Fund N/A

6. Birla Sun Life Mutual Fund 4107523.54

7. Canara Robeco Mutual Fund 393275.34

8. DBS Chola Mutual Fund 194078.69

9. Deutsche Mutual Fund 1103737.79

10. DSP Merrill Lynch Mutual Fund 2054041.86

11. Edelweiss Mutual Fund N/A

12. Escorts Mutual Fund 16246.73

13. Fidelity Mutual Fund 810434.39

14. Franklin Templeton Mutual Fund 2474206.35

15. HDFC Mutual Fund 5271080.51

16. HSBC Mutual Fund 1735730.82

17. ICICI Prudential Mutual Fund 5947358.64

18. IDFC Mutual Fund 1164128.48

19. ING Mutual Fund 849610.65

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20. JM Financial Mutual Fund 1165515.19

21. JPMorgan Mutual Fund 265470.28

22. Kotak Mahindra Mutual Fund 2118330.04

23. LIC Mutual Fund 1863346.86

24. Lotus India Mutual Fund 740606.11

25. Mirae Asset Mutual Fund 243664.98

26. Morgan Stanley Mutual Fund 311083.45

27. PRINCIPAL Mutual Fund 1419920.79

28. Quantum Mutual Fund 6661.66

29. Reliance Mutual Fund 9081345.11

30. Sahara Mutual Fund 17600.87

31. SBI Mutual Fund 3013240.09

32. Sundaram BNP Paribas Mutual Fund 1284672.32

33. Tata Mutual Fund 2385289.12

34. Taurus Mutual Fund 29896.08

35. UTI Mutual Fund 5077056.56

Grand Total 56475275.65

Source:-AMFI

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Company Profile

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INTRODUCTION OF RELIANCE MUTUAL FUND

Reliance Mutual fund has largest AUM in India. Reliance capital

asset Management is no. 1 AMC in India but the picture is not the same in Chhattisgarh.

In Chhattisgarh they are no. 2 AMC. Management of Reliance mutual fund wants to

expand its feet in Chhattisgarh, before taking any step they want to understand market &

investor behavior of SMEs, so they may plan accordingly to capture Chhattisgarh Market.

In this research we have to analyze why, how, where, when & how much an investor

invest & according to it, we have to make profile of investors.

In this report I have endeavored to understand the factors affecting

Investment behavior of an investor in Chhattisgarh. This behavioral study consists of howany investor invests in CG. What factor they consider, why these factors they consider,

where do they invest, how do they invest, purpose behind investment, size of investment,

timing of investment & duration of investment. This study gave us basis to profile

investors.

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Reliance Capital Asset Management Ltd.

Reliance Capital Asset Management Limited (RCAM),a

company registered under the Companies Act, 1956 was appointed to act as the

Investment Manager of Reliance Mutual Fund. Reliance Capital Asset Management

Limited is a wholly owned subsidiary of Reliance Capital Limited, the sponsorReliance

Capital Asset Management Limited was approved as the Asset Management Company for

the Mutual Fund by SEBI vides their letter no IIMARP/1264/95 dated June 30, 1995. The

Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM

dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual

Funds) Regulations, 1996. Pursuant to this IMA, RCAM is authorized to act as

Investment Manager of Reliance Mutual Fund. The net worth of the Asset Management

Company including preference shares as on March 31, 2005 is Rs.30.13 crore. Reliance

Mutual Fund has launched twenty five Schemes till date, namely: Reliance Vision Fund

(September 1995), Reliance Growth Fund (September 1995) Reliance Income Fund

(December 1997), Reliance Liquid Fund (March 1998), Reliance Medium Term Fund

(August 2000), Reliance Short Term Fund (December 2002), Reliance Fixed Term

Scheme (March 2003), Reliance Banking Fund (May 2003), Reliance Gilt Securities Fund

(July 2003), Reliance Monthly Income Plan (December 2003), Reliance Diversified

Power Sector Fund (March 2004) Reliance Pharma Fund ( May 2004), Reliance Floating

Rate Fund (August 2004), Reliance Media & Entertainment Fund (September 2004),

Reliance NRI Equity Fund (October 2004), Reliance NRI Income Fund (October 2004),

Reliance Index Fund (January 2005), Reliance Equity Opportunities Fund (February

2005), Reliance Fixed Maturity Fund - Series I (March 2005), Reliance Fixed Maturity

Fund - Series II (April 2005), Reliance Regular Saving Fund (May 2005), Reliance

Liquidity Fund (June 2005), Reliance Tax Saver (ELSS) Fund (July 2005), Reliance

Fixed Tenor Fund (November 2005) and Reliance Equity Fund (Feb 2006). RCAM has

been registered as a portfolio manager vides SEBI Registration No. INP000000423 and

renewed effective 1st August, 2003. RCAM has commenced these activities. It has been

ensured that key personnel of the AMC, the systems, back office, bank and securities

accounts are segregated activity wise and there exists systems to prohibit access to inside

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information of various activities. As per SEBI Regulations, it will further ensure that

AMC meets the capital adequacy requirements, if any, separately for each such activity.

Relia

nce Mutual Fund

Reliance Mutual Fund (RMF) has been established as a trust under the

Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settler/Sponsor and

Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee. RMF has been registered

with the Securities & Exchange Board of India (SEBI) vide registration number

MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been

changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBI's letter no.

IMD/PSP/4958/2004 date 11th. March 2004. Reliance Mutual Fund was formed to launch

various schemes under which units are issued to the Public with a view to contribute to the

capital market and to provide investors the opportunities to make investments indiversified securities.

The main objectives of the Trust are:

To carry on the activity of a Mutual Fund as may be permitted at law and

formulate and devise various collective Schemes of savings and investments for

people in India and abroad and also ensure liquidity of investments for the Unit

holders;

To deploy Funds thus raised so as to help the Unit holders earn reasonable returns

on their savings and

To take such steps as may be necessary from time to time to realize the effects

without any limitation

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Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with

Assets Under Management (AUM) of Rs.59857 crore (AUM as on 30th June 2007) and

an investor base of over 3.1 million. Reliance Mutual Fund, a part of the Reliance -Anil

Dhirubhai Ambani Group, is one of the fastest growing mutual funds in the country.RMF offers investors a well-rounded portfolio of products to meet varying investor

requirements and has presence in 115 cities across the country. Reliance Mutual Fund

constantly endeavors to launch innovative products and customer service initiatives to

increase value to investors. Reliance Mutual Fund schemes are managed by Reliance

Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd.

Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial

services companies, and ranks among the top 3 private sector financial services andbanking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset

management, life and general insurance, private equity and proprietary investments, stock

broking and other financial service. Reliance Equity Fund NFO has created history as the

highest collection ever among domestic mutual funds, by raising a record Rs.5723.26

crore from Rs.9.24 lakhs applications. It has replaced the 14-year-old record set by the

erstwhile Unit Trust of Indias Master gain Fund, which raised Rs.4,780 crore.

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Vision Statement

To be a globally respected wealth creator with an emphasison customer care and a culture of good corporategovernance.

Mission Statement

To create and nurture a world-class, high performanceenvironment aimed at delighting our customers.

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Reliance Mutual Fund Schemes

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> Reliance NRI Equity Fund aims to generate optimal returns by investing in equity

and equity related instruments primarily drawn from the Companies in the BSE

200 Index

> Reliance Equity Fund: The primary investment objective of the scheme is to seek

to generate capital appreciation & provide long-term growth opportunities by

investing in a portfolio constituted of equity & equity related securities of top 100

companies by market capitalization & of companies which are available in the

derivatives segment from time to time and the secondary objective is to generate

consistent returns by investing in debt and money market securities.

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CHAPTER II

RESEARCH METHODOLOGY

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RESEARCH

The term research can be defined as A Scientific and systematic search for pertinent

information on a specific topic. A research is a careful investigation or inquiry especially

through search for new fact in branch of knowledge. It is an increase in the existing stock

of knowledge making for advancement.Research methodology is the way to

systematically solve the research problem. Research methodology just does not deal with

research methods but also consider the logic behind the methods. It may be understood as

the science of studying how research is done scientifically and systematically. In it we

study the various steps that are generally adopted by the researcher in study of his

research problem along with the logic behind them. It is necessary for the research to

know the research method and technique. He must also clearly understand the procedure

would apply to problem given to him. All this means that it is necessary for the researcher

to design the methodology from problem to problem.

Research methodology is the way to systematically solve the research problem. Research

methodology just does not deal with research methods but also consider the logic behind

the methods. It may be understood as the science of studying how research is done

scientifically and systematically. In it we study the various steps that are generally

adopted by the researcher in study of his research problem along with the logic behind

them. It is necessary for the research to know the research method and technique. He must

also clearly understand the procedure would apply to problem given to him. All this

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means that it is necessary for the researcher to design the methodology from problem to

problem.

So, the research methodologies adopted by the researcher in this project are as

follows:

REVIEW OF RELATED LITERATURE

Review of related literature means researcher should undertake extensive literature

summary connected with the problem for this purpose, the abstracting and indexing

journals and published and unpublished bibliographies are the first place to go to.

Academic journals, conference, proceedings, government reports, books etc. must be

tapped depending on the nature of the problem. In this process, it should be remembered

that one source would lead to another. The earlier studies if any, which are similar to the

study in hand, should be carefully studied. A good library will be a great help to the

researcher at this stage.

STATEMENT OF PROBLEM

To study about the satisfaction of customer towards RELIANCE MUTUAL FUNDandawareness about new product.

PURPOSE OF STUDY

To study about the RELIANCE MUTUAL FUND and to take the feedback of their

existing customers and non existing customers through whom the RMF strengths and

weakness will be find out.

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OBJECTIVE OF STUDY

Primary Research Objective:--

To determine factors effecting investments and profiling investors of Raipur

Secondary Research Objectives:--

a. To determine factors that affects RELIANCE SIP+INSURES

PRODUCT investment

To study the Customers Satisfaction towards RMF.

To Find out the Awareness of New Product SIP + INSURE

To find out the feedback of existing customers of RMF Raipur.

To find out the feedback of non-existing customers of RMF.

To find out the strengths and weaknesses of RMF.

To find out the customers requirements.

UNIVERSE

Sum total of all the units that confirms to some designated part of specification is called universe.

While conducting the research work, researcher has selected Raipur city as the

universe. All the data which has been collected is completely done in the Raipur city.

SAMPLE

Large sample gives reliable result than small sample. However, it is not feasible to target

entire population or even a substantial portion to achieve a reliable result. So, in this

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aspect selecting the sample to study is known as sample size. Hence, for my project my

sample size was 100.The Sample Size of 100 is not enough to draw a conclusion but as

per the time assigned it was difficult to take a sample size more than 100.The Sample Size

consist of both the Professional and Business class people. IT peoples, Doctors, Jewelers,

Timber Merchants & Real estate Agents are taken as Sample.

SAMPLE UNIT

Sample unit is the part of universe taken from the universe for testing hypothesis. Researcher has

taken the existing customers ofRELIANCE MUTUAL FUND and non-existing customers also.

SAMPLING METHOD

The researcher adopted the convenient sampling method. In this method the sampling unit

is chosen primarily on the basis of convenience to the investigators. In this type of

sampling the researcher selects the item for the sample deliberately; his choice concerning

the items remains supreme. In other words, under this sampling method the organizers of

the enquiry purposively choose the particular unit of the universe for constituting a sample

on the basis that the small mass that they select out of huge ones will be typical or

representative of the whole.

SOURCE OF DATA

The task of data collection begins after a research problem has defined .

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INTERNAL SOURCES: -

These referred to the sources of information within the organization. In certain cases

internal sources are indispensable without which the researcher can not obtain desired

results. This source includes organization policies, marketing reports, and statistics in

relation to expenditures.

EXTERNAL SOURCES : -

These data can be divided into two categories.

(a) Primary Data.

(b) Secondary Data

Primary Data: -

This refers to information collected by the researcher from original sources. Primary

data is usually collected for specific purpose. The main sources from where the

primary data can be obtained.

(1)Dealers: - Valuable information can be collected with regards to the products and

vices from the dealers and retailers. Information about marketing polices of

competitors can also be gathered from the dealers.

(2)Users: - This source of collecting primary data is of utmost importance.

Representative samples of consumers may be selected for conducting thorough

investigation with regard to price, quality & Services.

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Secondary Data: -

Data that already exists with in the organization, collected from the study of present organizational

structure, reporting system and various other sources is included in secondary data. Business

magazines and journals published periodically contain data, which is very useful for research.

The primary data are that, which are collected fresh and for the first time and thus happens to be

original in character. The secondary data on other hand are those which have already been

collected by someone else and which have already been passed through the statistical process.

So, while I conducting the research work, I have used the primary as well as

the secondary sources of data.

DATA COLLECTION TOOLS:

These are the tools that the researcher had used for collecting the datas:

QUESTIONNAIRE

The term questionnaire refers to a self administered process where by the respondent

himself /herself reads the questions and records his/her answers without any assistance ofan interviewer. Although the instrument is essentially question asking and data gathering

tool. A questionnaire is more structured and standardized. The questionnaire consists of a

number of questions printed or typed in a definite order on a form or a set of forms. This

method of data collection is quite popular in case of big enquiries.

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STATISTICAL TECHNIQUE

Percentage method technique of central tendency was used by researcher in the analysis of

the data in his research. Percentage refers to a special kind of ratio. Percentages are used

in making comparisons between two or more series of data. Percentages are used to

describe relationships. Percentages can also be used to compare the relative terms the

distribution of two or more series of data. Measures of central tendency tell us the point

about which items have a tendency to cluster. Such a measure is considered as the most

representative figure for the entire mass of data. Measure of central tendency is also

known as Statistical Average.

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EXECUTION OF THE PROJECT

It is the very importance step in the research process. According to it, findings depend

upon how systematically the study has been cased out in time so that it can make some

sense when required. I have executed the project after prior discussion with the guide and

structure in following steps:

1. Preparation of questionnaire

2. Collection of list of some of the chick interview of the customer so that more

interview is possible and the variety of responses can be reposted to have a good

data for analysis.

3. Visiting the customers and asking them about the service they all availing from

RELIANCE MUTUAL FUND. Try to find out the satisfaction level with the

existing.

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CHAPTER III

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SYSTEMATIC INVESTMENT PLAN

OF

RELIANCE MUTUAL FUND

WHAT IS SIP?

JUST AS DROPS OF WATER MAKE AN OCEAN, SMALL BUT REGULAR

INVESTMENTS CAN GO A LONG WAY IN BUILDING WEALTH OVER TIME.

THIS WAY YOU GROW STEP BY STEP. ITS ALWAYS PRUDENT TO

INVEST WITH A LONG TERM HORIZON IN MIND.SMALL BUT

REGULAR INVESTMENTS GO A LONG WAY IN CREATING

WEALTH OVER TIME.

RELIANCE SYSTEMATIC INVESTMENT PLAN HELPS YOU

ACHIEVE JUST THAT. IT IS AN INVESTMENT TECHNIQUE WHERE

YOU DEPOSIT AS LITTLE AS Rs.100 REGULARLY EVERY MONTHIN TO THE MUTUAL FUND SCHEME AT THE THEN PREVAILING

NAV( NET ASSET VALUE ),SUBJECT TO APPLICABLE LOAD.

SIP LETS YOU INVEST IN PARTS INSTEAD OF ONE SINGLE

LUMPSUM AMOUNT ALL YOU HAVE TO DO IS ISSUE POST-DATED

CHEQUES TO THE FUND, WHICH WILL BE PRESENTED TO YOUR

BANK ON THE SPECIFIED DATES. NOWADAYS, SIPs COME WITH

OTHER CONVENIENT FEATURE, AN AUTO DEBIT FACILITY. THE

AUTO DEBIT FACILITY DOES AWAY WITH POST DATEDCHEQUES.THE FUND DEBITS THE MONEY DIRECTLY FROM

YOURBANK ACCOUNT.

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ADVANTAGES OF SIP:

NO NEED TO TIME THE MARKET

Imagine, if you could always pick the right time to buy & sell. However,timing the market is a time consuming & risky task. Through disciplined, regular

investments you can stop worrying about when & how much to invest.

In short, it eliminates the need to actively track the markets.

LOWER COST PER UNIT

Since your investments are spread regularly over a period of time, buyingfewer units during rising markets & buying more units during falling markets

reduces the average cost per unit of your investments-this concept is known as

Rupee cost averaging.

ILLUSTRATION - Rupee cost averaging.

Say you have opted for Reliance Systematic Investment Plan, Investing

Rs.100 every month from April 2008 to September 2008 in a diversified equity fund.

DATE NAV(Rs.) UNITS AMOUNT (Rs.)

12/4/08 80.52 1.24 100

10/5/08 81.49 1.23 100

10/6/08 71.87 1.39 100

10/7/08 72.64 1.38 100

10/8/08 81.74 1.22 100

10/9/08 87.49 1.14 100

Total 475.75 7.60 600

Avg cost 78.91

Avg price 79.29

Average cost = total cash outflow/total no. of units

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= 600/7.60 = Rs.78.91

Average price = sum of all NAVs at which you have invested / no. of month of

Investments =475.75/6 =Rs.79.29

POWER OF COMPOUNDING

The power of compounding underlines the essence of making money work if

only invested at an early age. The longer one delays in investing, the greater the

financial burden to meet desired goals. Saving a small sum of money regularly at an

early age makes money work with greater power of compounding with significant

impact on wealth accumulation.

CONVENIENCE

SIP can be operated by simply providing post dated cheques with the

completed enrolment form or give ECS instructions. The cheques can be banked on

the specified dates and the units credited into the investor's account. The SIP facility

is available in the Principal Income Fund, Monthly Income Plan, Child Benefit

Fund, Balanced Fund, Index Fund, Growth Fund, Equity fund and Tax Savings

Fund.

TENSION-FREE INVESTMENT

Management of the fund by the professionals or experts is one of the key

advantages of investing through a mutual fund. They regularly carry out extensive

research - on the company, the industry and the economy - thus ensuring informed

investment.

Secondly, they regularly track the market. Thus for many of us who do not have the

desired expertise and are too busy with our vocation to devote sufficient time and effort

to investing in equity, mutual funds offer an attractive alternative. There for it is tension

free investment.

DIVERSIFICATION

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Another advantage of investing through mutual funds is that even with small

amounts we are able to enjoy the benefits of diversification. Huge amounts would be

required for an individual to achieve the desired diversification, which would not be

possible for many of us.

ITS WELL REGULATED

The mutual fund industry is well regulated both bySEBI(Securities and

Exchange Board of India) andAMFI (Association of Mutual Funds in India). They have,

over the years, introduced regulations, which ensure smooth and transparent

functioning of the mutual funds industry.

You can change mutual fund time by time, switch in different mutual fund, this is one of

the big profit.

HELPS TO FULFIL OUR DREAMS

The investments we make are ultimately for some objectives such as to buy a

house, children's education, marriage etc. And many of them require a huge one-

time investment.

As it would usually not be possible raise such large amounts at short notice, we needto build the corpus over a longer period of time, through small but regular

investments. This is what SIP is all about. Small investments, over a period of time,

result in large wealth and help fulfill our dreams & aspirations.

Now think for the investment and select best mutual fund. Happy Investing.

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http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.amfiindia.com/http://www.amfiindia.com/http://shaktibanna.blogspot.com/2008/07/mutualfundjuly2008.htmlhttp://shaktibanna.blogspot.com/2008/07/mutualfundjuly2008.htmlhttp://www.sebi.gov.in/http://www.amfiindia.com/http://shaktibanna.blogspot.com/2008/07/mutualfundjuly2008.html


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HOW TO INVEST?

Select Reliance Mutual fund of your choice.

Under the Reliance Systematic Investment Plan, you can choose from a range of

equity and debt schemes which offer SIP.

Investment periodicity- you can choose to make your investment on a monthly or

quarterly basis.

Minimum investment amount- Monthly SIP option 60 installments of Rs.100 /-

each or 12 installments of Rs.500 /- each or 6 installments of Rs.1000/- each & in

multiples of Re. 1 thereafter.

Quarterly SIP option- 12 installments of Rs.500 each or 4 installments of Rs.1500

each & in multiples of Re. 1 thereafter.

The first SIP installments can be submitted on any working day. However, the

subsequent installments can be dated 2nd, 10th, 18th or 28th of every month/quarter.

Investment Method- The SIP facility can be availed by :

1. Electronic Clearing Services (ECS) or Direct Debit Mandate, wherein the

investor will have to give a debit mandate along with one signed cheque from

his savings bank account.

2. Issuing post-dated cheques (PDCs). (Rs.100 SIP can be processed only

through ECS or direct debit.

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RELIANCE SIP + INSURE

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What is the Facility?

Reliance SIP Insure facility is an add on feature of life insurance cover under Group Term

Insurance to individual investors opting for SIP in the designated schemes. Reliance SIP

Insure provides free life insurance cover to investors at no extra cost. In the unfortunate

event of the demise of an investor during the tenure of the SIP, the insurance company

will pay for the balance amount towards the remaining unpaid SIP installments.

Reliance SIP Insure- Benefits to the Investor

The benefit of Long Term Equity Investment

o Equities provide relatively better returns among all asset classes over a

longer period of time

The benefit of Systematic Investment Plan:

o Inculcates Savings Habit

o Rupee Cost Averaging & Eliminates the need to time the market

Free Life Insurance Covero Helps to complete the planned investments

o Maturity Proceeds at NAV based prices

Flexibility

o Wide choice of eligible schemes

Convenience

o Auto Debit from 4 banks namely ICICI bank, HDFC bank, AXIS bank &

HSBCo ECS facility across 65 locations

Designated Schemes in which Reliance SIP Insure will be offered

Reliance Growth Fund - Retail Plan

Reliance Vision Fund - Retail Plan

Reliance Equity Opportunities Fund - Retail Plan

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Reliance Equity Fund - Retail Plan

Reliance Equity Advantage Fund- Retail Plan

Reliance Regular Savings Fund Equity option

Reliance Regular Savings Fund Balanced option

Reliance Banking Fund

Reliance Pharma Fund

Reliance Media & Entertainment Fund

Reliance Diversified Power Sector Fund Retail Plan

Eligibility

All individual investors enrolling for investments via SIP & opting for Reliance

SIP Insure

Only individual investors whose completed age is greater than 20 years and less

than 46 years at the time of investment.

In case of multiple holders in the any scheme, only the first unit holder will be

eligible for the insurance cover.

Investment Details

Minimum Investment per installment: Rs.2000 per month & in multiples of Re 1thereafter. There is no upper limit

Minimum Period of Contribution: 3 years and in multiples of 1 year thereafter.

Maximum Period of Contribution: 15 years OR till attaining 55 years of age,

whichever is earlier (e.g., a person can register an SIP of maximum 10 yrs at the

age of 45 yrs.) The insurance cover ceases when the investor attains 55 years of

age.

Mode of payment of SIP installments is only through Direct Debit & ECS ( Post

Dated Cheques shall not be accepted )

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Reliance SIP Insure How does this work?

An investor does a monthly SIP of Rs.10,000 for 5 years in Reliance Growth Fund

If he dies after a period of 3 yrs, then his Sum Assured= Unpaid SIP installments =

2 yrs (i.e. 24months) X 10, 000 = Rs2, 40,000

This amount will be paid by life insurance company to SIP investors nominee account* with

Reliance Mutual Fund and will be invested in Reliance Growth Fund (in the same scheme in

which the deceased has earlier invested)

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CHAPTER IV

DATA ANALYSIS

AND

INTERPRETATION

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1. IN WHICH SEGMENT INVESTMENT AVENUES

PREFERRED BY YOU?

INVESTMENT

AVENUES

NO.OF

RESPONDANTS

PERCENTAG

E

EQUITIES 18 18

FIXED DEPOSITS 24 24

GOLD 20 20

REAL ESTATES 14 14

MUTUAL FUND 21 21

OTHERS 3 3

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TOTAL 100%

CHART:

18

24

20

14

21

3

0 10 20 30

1

OTHERS

MUTUAL FUND

REAL ESTATES

GOLD

FIXED DEPOSITS

EQUITIES

INTERPRETATION:

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The above chart reveals that out of 100% respondents, 24% prefers to invest in Fixed

deposits, while the second preference is given to Mutual Funds which hold 21% as

considered a safer mode of investment rather than Equities .While the Gold holding the

third position with 20% investors prefer Gold as their investment avenue because it is

highly liquid & irrelevant to market risk. Approx. 18% of the total respondents prefer

investments in equities & 14% investors prefer to invest in Real Estates in Raipur. As

Real Estates requires a large amount to invest on.

2. DO YOU INVEST YOUR SAVINGS IN SYSTEMATIC

INVESTMENT PLAN (SIP)?

CHART

69

YES NO

100 00


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100

0

0

20

40

60

80

100

120

1 2

Series1

INTERPRETATION:

According to this study 100% of the people those filled this questionnaire are invest their

savings in systematic investment plan.

3. IN WHICH SECTOR YOU PREFER INVESTING IN?

TABLE

70

EQUITY 75

DEBT 10

HYBRID 15


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INTERPRETATION:

According to this study 75% of the people who are surveyed prefer investing in equities

and 10% of the people prefer investing in debt and 15%prefer hybrid investments.

71

75

10

15EQUITIES

DEBT

HYBRID


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4. DO YOU THINK THE RISK PROFILE OF YOUR INVESTMENT

IS OVERCOME BY THE SIP + INSURE PLAN (PROVIDED THE

FREE LIFE INSURANCE)?

RISK PROFILE NO. OF

RESPONDEN

TS

PERCENTA

GE

HIGH RISK 12 12

MODERATE RISK 30 30

LOW RISK 58 58

TOTAL 100 100

CHART:

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NO. OF RESPONDENTS

12%

30%58%

HIGH RISK

MODERATE RISK

LOW RISK

INTERPRETATION:

The above chart reveals that 30% of the total respondent wants to take moderate risk,

followed by 58% of lower risk profiles while only 12% people belongs to high risk

profile.

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5. BY WHICH SOURCE YOU INFLUENCED TO INVESTING IN

SYSTEMATIC INVESTMENT PLAN?

SOURCE OF

ENCOURAGEMEN

T

NO OF

RESPONDE

NT

PERCENTAG

E

MEDIA 38 38%

BROKERS ADVICE 8 8%

FRIENDS/RELATIVES 32 32%

OWN ANALYSIS 12 12%

OTHERS 10 10%

TOTAL 100 100%

CHART:

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NO OF RESPONDENT

38%

8%32%

12% 10% MEDIA

BROKERS ADVICE

FRIENDS/RELATIVES

OWN ANALYSIS

OTHERS

INTERPRETATION:

The above chart shows the type of encouragement which influence people to invest in sip

+ insure people think that recommendation of Media that is news channel is

responsible38%, 12% are having view that there own analysis is the reason behind it, 10%

investors relay on brokers advice, and rest 32% investors relay in friends

recommendation.

6. WHAT IS YOUR INVESTMENT HORIZON FOR SYSTEMATIC

INVESTMENT PLAN + INSURE?

INVESTMENT HORIZON NO OF PERCENTAGE

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RESONDENTS

LONG TERM 22 22

MEDIUM TERM 62 62

SHORT TERM 16 16

TOTAL 100 100

CHART:

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22%

62%

16%

LONG TERM

MEDIUM TERM

SHORT TERM

INTERPRETATION:

From the above chart it is quite apparent that most of the investors wanted to invest for a long

term horizon22%, while short term investors are only 16%, and 62% of investors invest in

medium term.

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7. THE INVESTORS SATISFACTION FROM THE RELIANCE

SIP + INSURE PRODUCT?

SATISFACTION

LEVEL

NO. OF

RESPONDE

D

PERCENTAG

E

SATISFIED 31 31%

DISSATISFIED 26 26%

NEUTRAL 43 43%

TOTAL 100%

CHART:

satisfaction levels

3126

43

0

10

20

30

40

50

SATISFIED DISSATISFIED NEUTRAL

PERCENTAGE

INTERPRETATION:

From the above it is quite apparent that 43% of the total respondents are neutral about

their investment avenue because most of investors expectation about returns + risk is

more than the actual returns. While 31% of total respondents are satisfied and 26%

investors are dissatisfied with their investment avenue.

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8. WHAT ARE THE MAIN FEATURES DO YOU LIKE IN THIS

SYSTEMATIC INVESTMENT PLAN + INSURE (SIP + INSURE)?

FEATURES NO. OF

RESPONDE

D

PERCENTAG

E

RETURNS 46 46

FREE LIFE INSURANCE 26 26

OPEN ENDED 28 28

TOTAL 100%

CHART:

46

26

28RETURNS

FREE LIFE

INSURANCE

OPEN ENDED

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INTERPRETATION:

From the above it is quite apparent that 46% of the total respondents are prefer about their

investment in returns avenue because most of investors expectation about returns. While

26% of total respondents are prefer for free life insurance and 28% investors are prefer for

open ended plan with their investment avenue.

9. DO YOU THINK THIS PRODUCT (SIP + INSURE) IS COMPLETE

AS PER YOUR NEED?

80

YES NO

66 44


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CHART:

66

44

1

2

INTERPRETATION:

According to this study 66% of the people who are surveyed are think that reliance

systematic investment plan + insure (with free life insurance)mutual fund is completed

their need and 44% of the people who are surveyed are think that its not completed their

need .

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CHAPTER V

FINDINGS, LIMITATTIONS

&

SUGGESTIONS

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Findings of Exploratory Research

Its conducted In-depth interviews under which 15 respondents

from various industries were interviewed to get market insights about investment patternsof profit. Accordingly, we got some other variables than we thought of like Profit parkingpatterns & awareness about investment options. As far as this research is concernedsecondary data is not required & will be of no relevance because no such research isconducted in Chhattisgarh and other States data will be of no use.

Weights given to those new variables were significant compared to theother variables. Hence, we have taken them to account. In-depth interviews also validated& ranked variables suggested by us and Management.

Now after exploratory research we have given following weight to different variables:

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Model Suggested By Researcher

Variables WeightsRisk 0.15

Profit Parking 0.15Flexibility 0.10

Tax Benefit 0.17Liquidity 0.13Motive 0.10

Awareness 0.10

LIMITATIONS:

Every work has its own limitation. Limitations are extent to which the process

should not exceed. Limitations of this project are:-

1. Duration of Project was not enough to make a conclusion on such a vast subject

time Constraint has become a big limitation.

2. The Sample Size being taken for drawing a conclusion was too small to get an

accurate result.

3. Changing the Mentality of people for investing in a particular Financial Product is

a very difficult task.

4. Some consumers may presented their biased opinion (because of good or bad

experience they had with the company), which put hindrance in the interpretation.

All the above mentioned statements are the limitations of the project .Time; Sample

Size & Mentality of investor are the main limitations of the project. The study is being

done by taking and keeping all the limitations in mind. The project is completed in

prescribed time. To find the Investors Perception about Reliance sip + insure and the

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Sample Size is not at all enough because the population size is much bigger than the

sample size and the last limitation was to change the mentality of the investor to invest

in a particular type of the Investment Product. As the Indian Market has a large

number of potential customers to draw a conclusion in such a small size may not be

reliable.

SUGGESTIONS:

Product promotion and communication strategy by advertisement in business

magazines and commercials.

Clients satisfaction by maintaining proper and regular contacts with the

customers.

AMC should conduct more surveys in order to get proper feedbacks from

customers either through group interview & personal observation methods.

AMC should create in awareness level to explain the customers the benefits of SIP

+ INSURE.

This can be done by arranging in house workshop or by external program at a

public place to educate people about the nature, benefits & importance of

Investing.

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CHAPTER VI

ANNEXURES

QUESTIONNAIRE

Questionnaire

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Hello Sir/Madam,

We are conducting a survey on investors of Chhattisgarh. For this I request

you to please answer some questions that would take just a little time.

1. Name.

2. Ageyrs

3. Occupation.contact no

4. WHAT DIFFERENT MODES OF INVESTMENT IS PREFERRED BY

YOU?

1. Equities. 2. Fixed deposit. 3. Real estates.

4. Mutual funds. 5. Gold. 6. Other.

5. DO YOU INVEST YOUR SAVINGS IN SYSTEMATIC INVESTMENT

PLAN (SIP)?

1. Yes 2. No

6. IN WHICH FUND ARE YOU INTERESTED IN INVESTING INSYSTEMATIC INVESTMENT PLAN (SIP)?

1.Growth. 2. Vision.

3. Equity Opportunity . 4. Any other. Specify-

7. WHAT IS THE PROFILE OF YOUR CLIENTS WHO COME FOR

INVESTMENTS?

1. Risk averse. 2. Risk Neutral.

3. Risk taker.

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8. WHICH SEGMENT OF PEOPLE/CLIENT YOU DEAL WITH?

1. Corporates. 2. Individuals.

3. HUF. 4. AMFI Certified.

9. WHY DO YOU PREFER TO INVEST IN SIP OF RELIANCE MUTUAL FUND?

1. Interest Rates. 2. Capital Appreciation.

3. Tax-exempted. 4. Diversified Source of investment.

10. WHAT ARE YOUR VIEWS ABOUT INVESTMENT IN RELIANCE

SYSTEMATIC INVESTMENT PLAN (SIP)?

1. Interested. 2. Not Interested.

3. Cant say.

11. WHICHPARAMETERS YOU ANALYZE BEFORE INVESTING IN

SYSTEMATICINVESTMENT PLAN + INSURE (SIP + INSURE)?

1. Liquidity. 2. Transparency 3. Capital Appreciation

4. Tax benefit 5. Low risk 6. Free Life Insurance.

12. DO YOU THINK THE RISK PROFILE OF YOUR INVESTMENT IS

OVERCOME BY THE SIP + INSURE PLAN (PROVIDED THE FREE LIFE

INSURANCE)?

1. High risk 2. Moderate risk 3. Low risk

13. BY WHICH SOURCE YOU INFLUENCED TO INVESTING IN

SYSTEMATIC INVESTMENT PLAN?

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1. Media 2. Brokers advise 3. Friends/Relatives

4. Own Analysis 5. Others

14. WHAT IS YOUR INVESTMENT HORIZON FORSYSTEMATIC

INVESTMENT PLAN + INSURE?

1. Long Term 2. Medium term 3. Short term

15. THE INVESTORS SATISFACTION FROM THE RELIANCE

SIP + INSURE PRODUCT?

1. Satisfied. 2. Dissatisfied. 3. Neutral.

16. WHAT ARE THE MAIN FEATURES DO YOU LIKE IN THIS

SYSTEMATIC INVESTMENT PLAN + INSURE (SIP + INSURE)?

1. Returns 2. Free Life Insurance 3. Open ended

17. DO YOU THINK THIS PRODUCT (SIP + INSURE) IS COMPLETE AS

PER YOUR NEED?

1. Yes 2. No

18. WHAT ARE YOUR VIEWS ABOUT INVESTMENT IN RELIANCE

SYSTEMATIC INVESTMENT PLAN (SIP)?

1. Interested. 2. Not Interested.

3. Cant say.

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BIBLIOGRAPHY

Text Books References:--

Kotler .P Marketing management American publisher 2006

Kothari C.R. Research methodology Delhi publication 2009

Webloigraphy

Web References:-

www.reliancemutuals.com

www.amfiindia.com

www.googl.com.gov.in

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