MUTUAL FUND MUTUAL FUND OPERATIONS IN OPERATIONS IN

RELIANCERELIANCE

COMPANY PROFILECOMPANY PROFILE

Reliance Money, A Reliance Capital Limited Reliance Money, A Reliance Capital Limited Company, is the financial services division of Company, is the financial services division of Reliance Anil Dhirubhai Ambani (ADA) Group. Reliance Anil Dhirubhai Ambani (ADA) Group. Reliance ADA group is among top 3 business houses Reliance ADA group is among top 3 business houses in India with wide range of presence across various in India with wide range of presence across various sectors. Group’s major interests ranges from sectors. Group’s major interests ranges from communications (Reliance Communications) and communications (Reliance Communications) and financial services (Reliance Capital Ltd), to financial services (Reliance Capital Ltd), to generation, transmission and distribution of power generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.(Reliance Energy), infrastructure and entertainment.

COMPANY PROFILECOMPANY PROFILE

Reliance Money has over 22 lakhs Reliance Money has over 22 lakhs customers and more than 10'000 branches customers and more than 10'000 branches in around 5000 cities in India. Company in around 5000 cities in India. Company is among the largest broking and is among the largest broking and distribution house of financial products distribution house of financial products and having share of more than 3% of total and having share of more than 3% of total stock market volume at BSE & NSE.stock market volume at BSE & NSE.

What is a Mutual Fund?What is a Mutual Fund?

A Mutual Fund is a financial instrument A Mutual Fund is a financial instrument which allows a group of investors to pool which allows a group of investors to pool their money together with a their money together with a predetermined investment objective.predetermined investment objective.

A mutual fund is nothing more than a A mutual fund is nothing more than a collection of stocks and/or bonds.collection of stocks and/or bonds.

How Mutual Funds Work:How Mutual Funds Work:

MUTUAL FUND OPERATION MUTUAL FUND OPERATION FLOW CHARTFLOW CHART

We can make money from a mutual fund We can make money from a mutual fund in three ways:in three ways:

Income is earned from dividends on Income is earned from dividends on stocks and interest on bonds.stocks and interest on bonds.

If the fund sells securities that have If the fund sells securities that have increased in price, the fund has a capital increased in price, the fund has a capital gain. gain.

If fund holdings increase in price but are If fund holdings increase in price but are not sold by the fund manager, the fund's not sold by the fund manager, the fund's shares increase in priceshares increase in price

How to invest in mutual fund?How to invest in mutual fund?

To invest in the mutual fund, a distinct To invest in the mutual fund, a distinct portfolio for each goal is required. The portfolio for each goal is required. The money will be required at different points money will be required at different points of time. The customer should choose of time. The customer should choose between diversified equity funds, fixed between diversified equity funds, fixed maturity plan or balanced fund, debt maturity plan or balanced fund, debt maturity fund. maturity fund.

Authorities to the Mutual Fund Firms of Authorities to the Mutual Fund Firms of India:India:

SBI Mutual Funds SBI Mutual Funds Prudential ICICI Prudential ICICI Bank Of Baroda Bank Of Baroda Bajaj Capital Bajaj Capital RELIANCE MUTUAL FUNDRELIANCE MUTUAL FUND Franklin Templeton Mutual Fund India Franklin Templeton Mutual Fund India Standard Chartered Mutual fund India Standard Chartered Mutual fund India

TYPES OF MUTUAL FUNDS TYPES OF MUTUAL FUNDS SCHEMESSCHEMES

According to Maturity PeriodAccording to Maturity Period Open EndedOpen Ended Close EndedClose Ended

According to Investment ObjectiveAccording to Investment Objective Growth/Equity Oriented SchemeGrowth/Equity Oriented Scheme Income / Debt Oriented SchemesIncome / Debt Oriented Schemes Balanced SchemeBalanced Scheme

Best Mutual Funds – Selection:Best Mutual Funds – Selection:

  The selection of Mutual Fund is highly critical for various The selection of Mutual Fund is highly critical for various reasons .reasons .

The Mutual Funds are investments in multiple securities .The Mutual Funds are investments in multiple securities . Every single share (unit) of a mutual fund is like a small Every single share (unit) of a mutual fund is like a small

investment in thousands of stocks and bonds.investment in thousands of stocks and bonds. The advantages of the mutual funds are that they allow The advantages of the mutual funds are that they allow

small investors to put their money in a large variety of small investors to put their money in a large variety of securities.securities.

The Mutual Funds charges administrative fees to all the The Mutual Funds charges administrative fees to all the shareholders, which becomes a discouraging factor for shareholders, which becomes a discouraging factor for small investors.small investors.

Best Mutual Funds – Characteristics:Best Mutual Funds – Characteristics:

Low Administrative FeesLow Administrative Fees Experienced ManagementExperienced Management Above Average PerformanceAbove Average Performance

Organization of a Mutual FundOrganization of a Mutual Fund

Save tax with mutual fundsSave tax with mutual funds

Tax Saving Mutual Funds are highly Tax Saving Mutual Funds are highly preferred by the investors as they can enjoy preferred by the investors as they can enjoy the benefits of Section 88 (of the Income the benefits of Section 88 (of the Income Tax Act). There are a range of parameters Tax Act). There are a range of parameters which should be followed by the investors which should be followed by the investors who wish to invest in the tax saving mutual who wish to invest in the tax saving mutual fund to ensure returns over a long period.fund to ensure returns over a long period.

Mutual Fund Risk:Mutual Fund Risk:

Call RiskCall Risk Country RiskCountry Risk Credit RiskCredit Risk Currency RiskCurrency Risk Income RiskIncome Risk Industry RiskIndustry Risk Manager RiskManager Risk

STANDARD DEVIATIONSTANDARD DEVIATION

The total risk of a given fund is The total risk of a given fund is measured in terms of standard measured in terms of standard deviation.deviation.

It tells us how much the values have It tells us how much the values have deviated from the mean of the values. deviated from the mean of the values.

STANDARD DEVIATIONSTANDARD DEVIATION

Advantages of Mutual Funds:Advantages of Mutual Funds:

Professional ManagementProfessional Management DiversificationDiversification LiquidityLiquidity SimplicitySimplicity TaxTax

Disadvantages of Mutual Funds:Disadvantages of Mutual Funds:

Professional ManagementProfessional Management CostsCosts DilutionDilution

SegmentationSegmentation

Economical conditionEconomical condition Geographic conditionGeographic condition

Lower Income group

Lower Income group

Middle Income group

Middle Income group

Higher income group

Higher income group

Age Age

Urban Urban

Metro cityMetro city

YoungYoung

Middle aged Middle aged

AgedAged

Targeting done by Reliance Mutual Targeting done by Reliance Mutual FundFund

Targeting

Small cities

Foreign countries

Franchises

Positioning done by Reliance Mutual Positioning done by Reliance Mutual FundFund

Brand name of the company Brand name of the company RELIANCE RELIANCE

Financial Supermarket Financial Supermarket Conducts Seminars, Events to provide Conducts Seminars, Events to provide

knowledge knowledge

SWOT ANALYSISSWOT ANALYSIS

WEAKNESS

Brand strategy

Distribution channel strategy

Various sources of income

Large pool

Increasing liberalization

Emerging markets

Without a guaranteed return Fees

SWOT ANALYSISSWOT ANALYSIS

OPPORTUNITIES THREATS

Potential markets

Entry of MNCs

Increased Competition

Hedge funds

RECOMMENDATIONSRECOMMENDATIONS

The marketing strategy which they follow The marketing strategy which they follow should be segment wise. They should not should be segment wise. They should not waste their time on the person who are waste their time on the person who are unaware of the investment plans.unaware of the investment plans.

That portfolio should be brought which That portfolio should be brought which is doing well in the market because that is doing well in the market because that has the chance of increment.has the chance of increment.

THANK YOU..!!THANK YOU..!!