A

Project Study Report

On

Training Undertaken at

Reliance Mutual Fund

RELIANCE PVT.LT

Titled

“FUTURE OF MUTUAL FUND”

Submitted in partial fulfillment for the

Award of degree of

Bachelor of Business Administration

(2008- 2011)

ST.WILFRED’S P.G. COLLEGE,JAIPUR

Submitted to:

Submitted by Dr

Yogesh kumar agrawal

BBA Part 3

PREFACE

The successful completion of this project was a unique experience for me because by visiting

many place and interacting various person ,I achieved a better knowledge about sales . The

experience which I gained by doing this project was essential at this turning point of my carrer

this project is being submitted which content detailed analysis of the research under taken by

me.

The research provides an opportunity to the student to devote his/her skills knowledge and

competencies required during the technical session.

The research is on the topic “Reliance mutual Fund ”

ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to various people who have shared their

valuable time and made possible this project ,through their direct indirect cooperation .

First of all I would like to express my thanks to Mr. Devesh Pareek cluster head of Reliance

mutual fund Limited, jaipur for permitting me to do the training at his concern.

There are a few things that come in the life of a person, may be for a short span of time, but

leaves on ever shining impression in to the mind. My summer training is one of the events

which will be ever green in my life.

As I have been placed in reliance mutual fund Limited ,at Jaipur. I shared the real marketing

skills and knowledge from their experienced, enthusiastic and cordial executives, without

whom I would have not been able to achieve my aim.

I thank my respected faculties ,dear friend & colleagues ,who help me in every

possible ways , support me and encouraged me to explore new dimensions.

Executive Summary

The project deals with understanding of mutual fund and analysis. During my project, I got the

opportunity to understand the concept, various AMC (Asset management company) issuing

various Mutual Fund according to the needs of the investors. During my project, I came to

know important regulations of SEBI for mutual fund operations.

Project deals with an analysis of RELIANCE Mutual Funds various schemes in which I tried to

came out with a result which is best, for that purpose I conducted a market research. During

the project I suggested the investors how to invest and in which fund they should invest.

During the project, I made an endeavor to understand the awareness of mutual funds among

the various classes of investors. The data collected mainly through fact sheets of funds,

broachers, and questionnaire and also from various sites of Reliance mutual funds etc. the

data analyzed and recommendation is given on the basis of the conclusions.

CONTENTS

1...INTRODUCTION TO THE INDUSTRY

2...INTRODUCTION TO THE ORGANIZATION

3.. .RESEARCH METHDOLOGY

TITLE OF THE STUDY

DURATION OF THE PROJECT

OBJECTIVE OF STUDY

TYPE OF RESEARCH

SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

SCOPE OF STUDY

LIMITATION OF STUDY

4. FACTS AND FINDINGS

5. ANALYSIS AND INTERPRETATION

6. SWOT

7. CONCLUSION

8. RECOMMENDATION AND SUGGESTIONS

9. APPENDIX

10. BIBLIOGRAPHY

1...INTRODUCTION TO THE INDUSTRY;

There are a lot of investment avenues available today in the financial market for an investor

with an invest able surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds

where there is low risk but low return. He may invest in Stock of companies where the risk is

high and the returns are also proportionately high. The recent trends in the Stock Market have

shown that an average retail investor always lost with periodic bearish tends. People began

opting for portfolio managers with expertise in stock markets who would invest on their behalf.

Thus we had wealth management services provided by many institutions. However they

proved too costly for a small investor. These investors have found a good shelter with the

mutual funds.

Like most developed and developing countries the mutual fund cult has been catching on in

India. The reasons for this interesting occurrence are:

1. Mutual funds make it easy and less costly for investors to satisfy their need for capital

growth, income and/or income preservation.

2. Mutual fund brings the benefits of diversification and money management to the individual

investor, providing a Opportunity for financial success that was once available

only to a select few.

Mutual funds made an opening in India in 1963 under the enactment f Unit Trust of India (UTI),

which came out with is debut scheme named US-64, an open ended scheme n, which is

operating till date. Up to 1986- 87 it had launched 20 schemes; mobilizing net resources

amounting to Rs. 4564 crores for these 23 long years up to 1987 UTI enjoyed complete

monopoly of the unit trust business in India. It remained one and the only mutual fund in India.

It was in 1986 that the government of India amended banking

regulation act and allowed commercial banks in public sector to set up

mutual funds. This lead to promotion of ‘SBI-MUTUAL FUND’ bySt ate Bank Of India (SBI) in

July 1987 followed by

Canara Bank

Indian bank

Bank of India

Bank of Baroda

Punjab National bank

The government of India further granted permission to Insurance Corporation to public sector

to float mutual funds. The following were the corporations,

Life Insurance Corporation

General Insurance of Corporation

This was the picture till 1991, but when in 1991 the government of India followed a policy of

liberalization, privatization, and globalization it opened the gates to private sector to launch

mutual funds.

The History of Indian mutual fund industry can be broadly classified in to

The four phases:

Phase 1— July 1964 to November 1987

Phase 1— November 1987- October 1993

Phase 3--- October 1993- February 2003

Phase 4-- since February 2003

Phase 1--- MONOPOLY OF UTI

This period was marked by the operations of a single institution, UTI, which prepared ground

for the future mutual fund industry. The first decade of UTI’s operations was the formative

period. The first and still more popular product launched by UTI was US-64. Due to immense

popularity of unit 64, UTI launched a reinvestment plan in 1966-67. Another popular scheme,

Unit Linked Insurance Plan (ULIP), was launched in 1971. By the end of June 1974 there were

six lakhs unit holders with UTI .the unit capital totalled Rs.152 crore and investible funds

Rs.172 crore.

The second phase of operations (1974-84) was one of the consolidation and

expansion. In this period UTI was delinked from RBI .The period was marked by the

introduction of open ended growth funds. Six new schemes were introduced during 1981-84.

by the end ofJune 84 the investible funds crossed Rs. 1000 crore and unit holders

numbered to 17 lakhs.

During 1984-87, innovative and widely accepted schemes such as Children’s Gift Growth

Fund, Master share were launched. The first Indian off shore fund, India Fund was launched in

august 1986.

Towards the end of 1980s, winds of change had started blowing in the Indian economy.

UTI was one of the few organizations to prepare fully to face the emerging challenges. In the

following years it launched all round diversification programmes through backward and forward

integration in order to retain its position as the undisputed market leader

Phase 2—PUBLIC SECTOR COMPETITION

This period was marked by the entry of non- UTI public sector mutual

funds in the market, bringing in competition. With the opening up of the economy many public

sector financial institution established mutual funds in India. However, the mutual fund industry

remained the exclusive domain of the public sector in this period.

The first non-UTI mutual fund (SBI mutual fund) was launched by the State Bank

of India in 1987,this was followed by Canbank mutual fund scheme (launched in December

1987),LIC mutual fund scheme (launched in June 1989) and Indian bank mutual fund scheme

(launched in January 1990).

The entry of the public sector mutual funds created waves in the market and attracted small

investors. The cumulative mobilization of resources went up from Rs.4500 crores in 1987

(mobilized by UTI alone.) toRs.19000 crore in 1990 (mobilized collectively by UTI, SBI mutual

fund, CANBANK mutual fund, LIC mutual fund, and Ind Bank mutual fund).

With the entry of three more mutual funds in the market namely, Bank of India mutual fund,

GIC mutual fund , PNB mutual fund ,collection increased to Rs.37,480 crore (1991-92)

indicating a 96% increase in between 1989-90 and 91-92. However UTI continued to be the

dominantly player in the market, though its share declined marginally from 87.9 % in 1988-89

to 84% in 1991-92.

The years 1992-93 and 93-94 saw a decline in collections by the public sector mutual

funds. The total collection declined from the 2500 crore to 1960 crore in 92-93. There were two

reasons for the fall in the collection. First, SEBI had prohibited mutual funds from any scheme

with an assured return. Second according to mutual fund regulations, 1993, Indian mutual

funds were to form Asset Management Company (AMC) pending which they could not launch

any scheme

Before 1989 there were no regulatory guidelines for the mutual fund industry in India.

The first such guidelines for setting up and regulating mutual funds were issued by Reserve

Bank Of India but they were applicable to mutual funds floated by banks. Then the guidelines

were issued by the government of India in 1990 covering all mutual funds and making them

mandatory for all the mutual funds to be registered with SEBI. These guidelines also set the

norms for registration, management, investment objectives, disclosure, pricing and valuation of

securities, and so on.

These guidelines were revised and Security and Exchange Board of India (SEBI) regulations

1993 came in to effect on the 20th Jan 1993, rules for formulation, administration, and

management of mutual funds in India were clearly laid down. The regulation made the

formulation of AMC and listing of the closed ended schemes compulsory.

With view to protect the investor’s right disclosure, norm was also tightened.

Another significant development during this period was the opening up of the mutual funds

market to the private sector.

PHASE 3-EMEREGENCE OF COMPETITATIVE MARKET.

A new era in mutual fund industry began with the entry of private sector funds in 1993,

posing a serious competition to the existing public sector funds. The new private sector funds

have distinctive operational advantages. They are

Most of them are jointly floated by Indian organization along with

experienced foreign asset management companies, facilitating access the latest technology

and foreign fund management strategies.

Private sector funds are able to attract the best managerial talents

from the public sector.

Starting of the mutual funds has been easier for them because

infrastructural inputs created by the public sector mutual funds

were already available.

The first private sector mutual fund to launch a scheme was the Madras based

Kothari Pioneer Mutual fund. It launched the open ended prima fund in November 1993.

During the year 93-94, five private sector mutual funds namely

o Kothari Pioneer Mutual Fund

o ICICI Mutual fund

o 20th century mutual fund

o Morgan Stanley Mutual Fund

o Taurus Mutual fund

During 1994-95 six more private sector funds were launched they are

o Apple mutual fund

o JM mutual fund

o Shriram mutual fund

o CRB mutual fund

o Alliance mutual fund

o Birla mutual fund

Between 1993 and 1995, further regulatory measures were introduced

The government of India has allowed NRIs and Overseas Corporate Bodies (OCB) to

invest in UTI and other mutual funds (in both primary and secondary market).

The practice of obtaining prior approval for advertising by mutual funds has been

dispensed with Mutual funds are allowed to invest in money market instruments up to 25% of

resources mobilized

The practice of reissuing of units of closed ended schemes has been dispensed with Mutual

funds are allowed to buy back their own units from the secondary marketing case they are

traded at a substantial discount to NAV.

With effect from 1 December 1993 new issuers have been allowed

to reserve 20% of the public issue for mutual funds.

Mutual funds have been allowed to launch income schemes with assured returns one at a

time.

Mutual funds have been allowed to enter in to underwriting activities to augment their

resources

PHASE-4 - (SINCE 2003 FEBRUARY)

On Feb 2003, UTI was bifurcated in to 2 separate entities. One is specified

undertaking of the UTI with asset under management of Rs.29, 835 crores as at the end of Jan

2003. The second is the UTI mutual funds Limited, sponsored by the State Bank of India, Bank

of Baroda and Life Insurance Corporation of India. UTI is functioning under an administrator

and rules framed by the government of India do not come under the purview of the Mutual fund

Regulations. The Mutual Funds Limited is registered with SEBI and functions under the Mutual

Fund Regulations. With the bifurcation of the erstwhile UTI, with the setting up of a UTI mutual

fund, confirming to the SEBI Mutual Fund Regulations and recent mergers taking place among

different private sector funds, the mutual fund industry has entered its current phases of

consolidation and growth.

At the end of September 2004, there are 29 funds, which manage assets of Rs. 153108 crores

under 421 different schemes.

At the end of July 2005 the status of mutual fund industry was

No of schemes

amount (crores

Open ended schemes

414

1, 64,998

Closed ended schemes

46

10 920

Risk factors associated with investing in mutual funds:

Mutual funds and securities investments are subject to market risks and there is no assurance

or guarantee that the objectives of the schemes will be achieved

As with any investment in securities, the NAV of the units issued under the schemes can rise

or fall depending on the factors and forces affecting capital markets. Neither the past

performance of the mutual funds managed by the sponsors and their affiliates / associates nor

the past performance of the sponsors, asset management companies (AMC) nor fund is

necessarily indicative of the future performance of the schemes

Equity Funds are open to market risk i.e. there is a possibility that the price of the stocks in

which the Fund has invested may decrease. Of course, the prices may also go up, making it

possible for the Fund to earn profits

Debts Funds are open to two main risks - Credit Risk and Interest Rate Risk. Credit Risk refers

to the possibility that the company that has issued the bond or debenture in which the Fund

has invested may default on interest or on principal payments. Debt Fund managers take care

of this by investing in bonds which have good credit rating

Interest Rate Risk refers to the possibility that the price of the bond in which the Fund has

invested may go down because of an increase in the interest rates in the economy. In general,

it is useful to remember that this is a "see-saw" relationship - a bond price (and therefore,

NAV) goes up when interest rates drop and drops when interest rates rise

Types of MutualFunds Scheme in India

Wide variety of Mutual Fund Schemes exist to cater to the needs such as financial position,

risk tolerance and return expectations etc. The table below gives an overview into the existing

types of schemes in the Industry.

•

By Structure

Open - Ended Schemes

Close - Ended Schemes

Interval Schemes

By Investment Objective

Growth Schemes

Income Schemes

Balanced Schemes

Money Market Schemes

Other Schemes

Tax Saving Schemes

Special Schemes

Index Schemes

Sector Specfic

Company Profile of ICICI

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock

trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs,

Mutual Funds and Bonds. Trading is available in BSE and NSE

ICICIDirect offers 3 different online trading platforms to its customers

1. Investment Account

Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also

provide options to invest in Mutual Funds and Bonds online.

Online Mutual funds investment allows investor to invest on- line in around 19 Mutual Fund

companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase

Mutual Fund, Redemption and switch between different schemes, Systematic Investment

plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic

mode. This account also provides facility toinves in Government of India Bonds and ICICI Bank

Tax Saving Bonds.

ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds and stock

trading.

Reliance Money

Tax Saving funds Reliance Money:

Tax-saving funds (due to their equity-oriented nature) are capable of clocking far

superior returns their assured return counterparts like National Savings Certificate (NSC) and

Public Provident Fund (PPF). However investors must appreciate that the risk profile of tax-

saving funds tends to be proportionately higher

Reliance Tax Saver (ELSS) Fund (RTSF) is the latest entrant in the tax-saving funds segment.

Flagship diversified equity funds (Reliance Growth Fund and Reliance Equity Fund) from

Reliance Mutual Fund have emerged as top performers in their segment across time horizons.

However investors should note that these funds are managed aggressively; also they have

displayed an opportunistic streak by moving fluidly across market segments (large caps, mid

caps) to clock superior growth. RTSF is likely to be a similar (high risk - high return)

investment proposition within the tax-saving funds segment.

SYSTEM INVESTMENT PLAN

SIP is a way of investing in Mutual Funds. It is designed for those investors who are

willing to invest regularly rather than making a lump sum investment. It is just like a recurring

deposit with the post office or bank where we deposit some amount every month. The

difference here is that the amount is invested in a mutual fund. Mutual Fund makes investment

according to their objective .They collect fund from investor and invests it. Every fund has an

objective and pattern of investing. There are various kinds of mutual funds. There are equity

funds and debt funds. Further equity funds can be divided into equity diversified mutual fund

where funds are invested in shares of different companies , sectoral funds where investment is

made in shares of some particular sector like FMCG, IT, Auto, Oil & Gas, Banking etc. Every

fund has a NAV (net asset value) which is the value per unit. It is calculated as the total asset

is divided by the number of outstanding units. As the value of asset changes, nav also

changes.

The best way to invest in stock market is mutual fund through Systematic Investment Plan. But

to get the benefit of an SIP, a long term horizon is must.

ADVANTAGES OF MUTUAL FUNDS

There are numerous benefits of investing in mutual funds and one of the key reasons for its

phenomenal success in the developed markets like US and UK is the range of benefits they

offer, which are unmatched by most other investment avenues.

Diversification

The nuclear weapon in your arsenal for your fight against Risk. It simply means that

you must spread your investment across different securities (stocks, bonds, money market

instruments, real estate, fixed deposits etc.) and different sectors (auto, textile, information

technology etc.).

Tax Benefits

Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit

holders. However, as a measure of concession to Unit holders of open-ended equity-oriented

funds, income distributions for the year ending March 31, 2003, will be taxed at a concessional

rate of 10.5%.

Regulations

Securities Exchange Board of India (“SEBI”), the mutual funds regulator has clearly

defined rules, which govern mutual funds. These rules relate to the formation, administration

and management of mutual funds and also prescribe disclosure and accounting requirements.

Such a high level of regulation seeks to protect the interest of investors

Affordability

A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the

investment objective of the scheme. Azn investor can buy in to a portfolio of equities, which

would otherwise be extremely expensive.

Features related mutual funds

Reliance was the first fund house to launch sector funds with flexibility to invest in a range of

0% to 100% in either equity or debt instruments.

•

Mutual fund investments linked to an ATM/debit

card a Reliance innovation India’s first long- short fund comes

from Reliance Mutual Fund . •

As at 31st May 2008, more than 6.6 million people had invested in Reliance Mutual Fund;the

investments comprised 16% of the country’s entire mutual fund.

COMPARATIVE STUDY OF MUTUAL FUND

Company Profile of HDFC

HDFC BANK is one of the leading Depository Participant 36 (DP) in the country with over 8

Lac demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep track of your

securities and investments, over a period of time, without the hassle of handling physical

documents that get mutilated or lost in transit.

HDFC BANK is Depository particpant both with -National Securities Depositories Limited

(NSDL) and Central Depository Services Limited (CDSL).

To make their packages more attractive, Reliance Mutual Fund created proposals called The

Equity/ Growth scheme, Debt/Income Scheme, and Sector Specific Scheme.

Debt/Income Scheme, and Sector Specific

Scheme.

The Equity/ Growth scheme give medium to long term capital increase. The major part of

the investment is on equities and they have fairly high risks. The scheme gives the investors

varying options like, capital augmentation or dividend preference. The choices are not

deadlocked because if you want you may change the options later on.

Providing steady and regular income is one of the Debt/Income Scheme's primary

goals. The Debt/Income scheme has in its portfolio government securities, corporate

debentures fixed income securities, and bonds. returns on Sector Specific Scheme are

dependent on the performance of the industry at which your money is invested upon.

Compared to diversified funds this is a lot more risky and you will need to really give

your time on observing

the market. Although RMF is gaining good ground in the financial market, remember that they

are a risk taking bunch. They give higher profit because they take a lot of risks. So, if you are

faint hearted, then Reliance Mutual Fund is not for you.

GROWTH OF RELIANCE MONEY THROUGH

Recognition

Growth through Recognition

Reliance has merited a series of awards and recognitions

for excellence for businesses and operations.

Corporate Ranking and Ratings:

Reliance featured in the Fortune Global 500 list of ‘World’s

Largest Corporations’ for the fourth consecutive year.

Ranked 269th in 2007 having moved up 73 places

from the previous year.

Featured as one of the world’s Top 200 companies in

terms of Profits.

Among the top 25 climbers for two years in a row.

Featured among top 50 companies with the biggest

increase in Revenues.

Ranked 26th within the refining industry

Reliance is ranked 182nd in the FT Global 500 (up from

previous year’s 284th rank).

PetroFed, an apex hydrocarbon industry association, conferred the PetroFed 2007

awards in the categories of “Refinery of the Year” and “Exploration & Production -

Company of the Year”.

Brand Reliance was conferred the “Bronze Award” at The Buzziest Brands Awards

2008, organized by agencyfaqs!

Institute of Economic Studies conferred the “UdyogRatna” award in October 2007 for

contributions to theindustry.

Chemtech Foundation conferred the “Hall of Fame” inFebruary 2008 for sterling

contributions to theindustry.

Chemtech Foundation conferred the “OutstandingAchievement - Oil Refining” for work

at the JamnagarManufacturing Division.

Petroleum Federation of India conferred the “Refinery ofthe Year Award - 2007” to

Jamnagar ManufacturingDivision

“The Plastics Export Promotion Council –

PLEXCOUNCIL Export Award” in the category ofPlastic Polymers for the year 2006-

2007 was awardedto Reliance being the largest exporter in this category.24

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 inChemical Industry”.

Jamnagar Manufacturing Division was conferred the“Good House Keeping Award” from

BarodaProductivity Council.

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

scientific paper at the 58th National Conference of Occupational Health.

Naroda Manufacturing Division was conferred the

“Safety Award and Certificate of Appreciation”

presented by Gujarat Safety Council & Directorate ofIndustrial Safety & Health, Gujarat

State for there cognition of safety performance at the 29th State

Level Annual Safety Conference.

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

UK.

Dhenkanal Manufacturing Division received the “2nd Prize for Longest Accident Free

Period” from the Hon’ble Minister of Labour, State of Orissa.

Hoshiarpur Manufacturing Division bagged the First Prize in “Safety in Punjab”,

organized by Punjab Safety Council.

Patalganga Manufacturing Division won the “Gold Medal at CASHe (Change Agents for

Safety, Health and Environment) Conference”. It also won the III Prize in Process

Management category for Presentation on Safety through Design in chemical process

industry in Petrosafe 2007 Conference.

Kurkumbh Manufacturing Division won the “Greentech Safety Award silver trophy” for

outstanding achievement in safety management in chemical sector.

Hazira Manufacturing Division received the “TERI Corporate Environmental Award

(Certificate of Appreciation)” for PET recycling project.

Nagothane Manufacturing Division received the “Shrishti G-Cube Award for Good Green

Governance” from Minister for Commerce and Industry, on World Earth Day.

Result:-

From the above graph, it is clear, peoples are not aware about mutual fund because they

were not educated. According to business men, 72% people known what is mutual fund

because they aware about share market. According to government employees, 40% peoples

know what is mutual fund; they don’t intrastate in share market. Youngsters have so aware

about mutual fund. 80% youngsters known, what is mutual fund. Now, we talk about private

employees, maximum people known, what is mutual fund, it is 60%.

Result:

We know that mutual fund is not always risk free. According to the customers who know

what is mutual fund, they also know it is not always risk free. Problem has that maximum

people are not aware about mutual fund.28% business men don’t know, 60% government

employees, 20% youngsters and private employees don’t know it is risk free or not.

Result:

From the above graph, which is according to the primery data collected, clearly shows that

“Preference of investors are based on high return, liquidity and growth of fund”i.e. investors

give their preferences to that fund which gives them high return. 26% customers like to the

Reliance mutual fund. 14% customer’s belief HDFC mutual fund. Birla sun life mutual fund

having 15% preferred. Kotak Mahindra mutual fund having 17% preferred, other’s mutual fund

having 28% preferred.

Result:

From the above graph, which is according to the primery data collected, clearly shows that

investors have two types mutual fund, it is 18%. They want earn maximum profit from mutual

fund. These customer want to increase number of units and also invest other plan like saving

plan.

Result:

The result of the primary data shows that investors of reliance mutual fund who invested in

other mutual fund having the higher percentage prudential ICICI Mutual fund but it may be

right or wrong. As reliance is the brand name in India, the company has good reputation in

the market, almost everyone heard about the reliance and their companies. Brand

management is also required to increase the product perceived value to the customer. That’s

the reason behind 37% of the people choosing reliance.

Result:

From the above graph, which is according to the primary data collection, clearly shows that

the investors are satisfy with the services providing by the reliance AMC. 37% belief on

reliance mutual fund. It is fine compare to other’s.

Result:

74% customers of reliance are satisfied with the services provided by Reliance Mutual fund

and the rest 26% are not satisfied. Customers of today are better educated, better informed,

more discriminating, more sophisticated and are more individualistic. What they value in a

mutual fund transaction has dramatically changed.

2. ..INTRODUCTION TO THE ORGANIZATION

HISTORY OF RELIANCE

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private

sector enterprise, with businesses in the energy and materials value chain. Group's annual

revenues are in excess of US$ 44 billion. The flagship company, Reliance Industries Limited,

is a Fortune Global 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of

Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward

vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum

refining and oil and gas exploration and production - to be fully integrated along the materials

and energy value chain.

REL

IANCE INDUSTRIES LIMITED

Reliance Group Holdings has grown froma small office data-processing

equipment firm in 1961 intoa major insurance and financial-services group in onegeneration

under one chief.

Reliance's insurance operations constitute the nation's 27th-largest property and

casualty operation. The parent company also includes a development subsidiary in commercial

real estate. Reliance's international consulting group contains several subsidiaries in energy,

environment, and natural resources consulting. A financial arm invests in other businesses,

primarily television stations.

Reliance Insurance started as the Fire Association of Philadelphia in 1817, organized

by 5 hose and 11 engine fire companies. It became the nation's first association of volunteer

fire departments.

Business got a boost as a result of the Great

Chicago Fire of 1871.The association soon developed a field of agents to write policies across

the country. For the first two years, shareholders received dividends twice a year of $5 a

share, which increased gradually to $10 in 1876.

In 1972, the Reliance insurance group divided its

pool so that Reliance Insurance Company and its

subsidiaries handled most standard lines, while United Pacific Insurance Company handled

the nonstandard and other operations.

In 1977, the company moved into real estate, forming Continental Cities Corporation,

which became Reliance Development Group, Inc. This division handled all real estate

operations of the parent company and other subsidiaries.

Reliance Capital Group, L.P. constituted the investment branch of the Reliance conglomerate.

In December 1989, Reliance Capital sold its investment, Days Corporation, parent company of

Days Inn of America, the world's third-largest hotel chain; it had been purchased in 1984.

Reliance Industries Limited. The Group's principal activity is to produce and distribute plastic

and intermediates, polyester filament yarn, fibre intermediates, polymer intermediates,

crackers, chemicals, textiles, oil and gas. The refining segment includes production and

marketing operations of the Petroleum refinery. The petrochemicals segment includes

production and marketing operations of petrochemical products namely, High and Low density

Polyethylene.

"Growth has no limit at Reliance. I keep revising

my vision.

Only when you can dream it, you can do it."

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global

leader in the materials and energy value chain businesses.

He is credited to have brought about the equity cult in India in the late seventies and is

regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to

excel'.

The Reliance Group is a living testimony to his indomitable will, single-minded dedication and

an unrelenting commitment to his goals.

Mukesh Ambani is the owner of these companies

Reliance Petroleum Limited

Reliance Jamnagar Infrastructure Limited

Reliance Retail Limited

Petrochemicals.

Textiles.

Reliance industries Limited

Reliance Group is India's largest private sector enterprise. Here is a brief profile of RIL.

Reliance Group

Reliance industries limited is India’s largest private sector conglomerate(and

second largest overall) with an annual turnover of US$35.9 billion and profit

of US$ 4.85 billion for the fiscal year ending in march 2008 making it one of

India’s Private sector Fortune Global 500 companies, being ranked at 206th

posting (2008). It was founded by the late Indian industrialist Dhirubhai

Ambani in 1966.

Though the company’s oil related operations forms the core of its business,

it has diversified its operations in recent years. After severs differences

between the founder’s two sons, Mukesh and Anil Ambani, the group was

divided between them in 2006.

Company’s profile

COMPANY’S BOARD OF DIRECTORS

Reliance Industries

Type Public (NSE: RELIANCE)

Founded1966 As Reliance Commercial

Corporation

Headquarters Mumbai, India

Key peopleMukesh Ambani, Chairman &

Managing Director

Industry Oil Conglomerates

Products

Petroleum and Petroleum

Products

Retail Stores

Polymers

Polyesters

Chemicals

Textile

Revenue $35.9 billion (2008) ▲

Operating

incomeUS$ 20.40 billion

Nikhil R. Meswani

Executive Director

Hital R. Meswani

Executive Director

H.S.Kohli

Executive Director

Ramniklal H. Ambani Mansingh L. Bhakta Yogendra P. Trivedi

Dr. D. V. Kapur M. P. Modi S. Venkitaramanan

Prof. Ashok Misra Prof. Dipak C JainDr. Raghunath

Anant Mashelkar

Reliance Industrial Investment & Major Subsidiaries & Associates

of Reliance

Major Subsidiaries:

Reliance Petroleum Limited

Reliance Netherlands BV (including Trevira)

Reliance Retail Limited

Ranger Farms Private Limited

Retail Concepts and Services Private Limited

Reliance Retail Insurance Broking Limited

Reliance Dairy Foods Limited

Reliance Retail Finance Limited

RESQ Limited

Reliance digital Retail Limited

Reliance Service Solutions Limited

Reliance Jamnagar Infrastructure Limited

Chairman’s profile

Reliance Haryana SEZ Limited Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments Limited

Reliance Exploration & Production - DMCC

Reliance Industries (Middle East) DMCC

Reliance Global Management Services (P) Limited.

Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani (1932-2002)

is the flagship company of the Reliance Anil Dhirubhai Ambani Group. It is India's foremost

truly integrated telecommunications service provider. With a customer base of over 36 million

including close to one million individual overseas retail customers, Reliance Communications

ranks among the top ten Asian Telecom companies. Its corporate clientele includes 600

Indian, 250 multinational corporations and over 200 global carriers and owns and operates the

world's largest next generation, IP enabled connectivity infrastructure, comprising over 150,000

kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific

region. For more information, visit:

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani,

48, is the chairman of all listed companies of the Reliance ADA Group

namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance

Natural Resources.

He is also the president of the Dhirubhai Ambani Institute of Information and

Communications Technology, Gandhinagar

An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is credited

with pioneering several financial innovations in the Indian capital markets. He spearheaded the

country’s first forays into overseas capital markets with international public offerings of global

depositary receipts, convertibles and bonds.

Under his chairmanship, the constituent companies of the Reliance ADA group have raised

nearly US$ 3 billion from global financial markets in a period of less than 15 months.

Shri Ambani has been associated with a number of prestigious academic institutions in India

and abroad.

He is currently a member of:

Wharton Board of Overseers, The Wharton School, USA

Board of Governors, Indian Institute of Management (IIM), Ahmedabad

Board of Governors, Indian Institute of Technology (IIT), Kanpur

Executive Board, Indian School of Business (ISB), Hyderabad

Executive Board, Indian School of Business (ISB), Hyderabad

In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha

– Upper House, Parliament of India, a position he chose to resign voluntarily on March

25, 2006.

Select Awards and Achievements

Voted ‘the Businessman of the Year’ in a poll conducted by The Times of India – TNS,

December 2006

Voted the ‘Best role model’ among business leaders in the biannual Mood of the

Nation poll conducted by India Today magazine, August 2006

Conferred ‘the CEO of the Year 2004’ in the Platts Global Energy Awards

Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management

Association, October 2002

• Awarded the First Wharton Indian Alumni Award by the Wharton India Economic

Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a

global leader in many of its business areas, December 2001

ORGANIZATIONAL SET UP

CHAIRMAN

PRESIDENT PRESIDENT PRESIDENT

(PRESONAL (ENTERPRISES (HOME

BUSINESS) BUSINESS) BUSINESS)

SENIOUR

V.P

G.M

DGM

AGM

SENIOUR

MANAGER

MANAGER

DUPTY

MANAGER

ASST.

MANAGER

MANAGEMANT TRAININ

Major Awards

Growth through Recognition

Reliance has merited a series of awards and recognitions for excellence for businesses and operations.

Leadership

In 2009, Shri Mukesh D. Ambani, Chairman and Managing Director of RIL, was ranked

the 5th best performing CEO in the world by the Harvard Business Review in its

ranking of the top 50 global CEOs of all publicly traded companies that have made it

into the Standard & Poor’s Global 1200 or BRIC 40 lists since 1997 and also

companies from Brazil, Russia, India, and China.

Shri Mukesh D. Ambani was awarded the Dean’s Medal by University of

Pennsylvania’s Eduardo Glandt, dean of the School of Engineering and Applied

Science in 2010. The recognition was for his leadership in the application of

engineering and technology.

Shri Mukesh D. Ambani was awarded the Indian Merchant’s Chamber (IMC) ‘Juran

Quality Medal for 2009’, in 2010.

Shri Hardev Singh Kohli received the ‘Gem of India Award’ for his contributions to

usher in excellence in the Indian industry at the All India Achievers’ Conference (AIAC)

in 2009.

Corporate Ranking & Ratings:

RIL continues to be featured, for the fifth consecutive year, in the Fortune Global 500

list of the “World’s Largest Corporations”; ranking for 2009 is as follows:

Ranked 264th in terms of sales

Ranked 117th in terms of profits

RIL is ranked 75th in 2009, in the FT Global 500 (up from previous year’s 80th rank).

RIL has been ranked as the 5th sustainable value creator globally by the Boston

Consulting Group (BCG) in their report on the Top 25 sustainable value creators that

have been most successful at attaining superior value creation over a longer period of

time.

RIL, ranked at the 11th position, was the only Indian company in the 25 A T Kearney

Global Champions for 2009.

RIL is ranked as 15th most innovative company in the world in 2009, climbing 4

positions from 2008, in a survey conducted by Business Week and the BCG. This

survey of around 3,000 global CEOs is done to rate the world’s top 50 most innovative

companies.

The Allahabad Manufacturing Division bagged the Golden Jubilee Award from the

Eastern UP Chamber of Commerce and Industry for extraordinary accomplishments in

2009.

The Exploration and Production (E&P) division won the ‘Best Project of the Year 2009’

award for KG-D6 Block Deepwater (D1/D3) Gas Fields Development Project

Kakinada, East coast of India from the Project Management Institute, India in 2009.

Health, Safety and Environment

The Allahabad Manufacturing Division received the BSC-5 star certification for safety

and occupational health from the British Safety Council in 2009.

The E&P division received the Oil Industry Safety Award from the Ministry of

Petroleum & Natural Gas for ‘Best Overall Safety Performance amongst Offshore

Drilling Rigs’ (private and joint venture) in 2009.

The Dahej Manufacturing Division received the ‘10th Annual Greentech Environment

Excellence Award 2009’ in the Petrochemicals sector from the Greentech Foundation

in 2009.

The Dahej Manufacturing Division won the ‘Greentech Safety Award 2009–Gold’ in the

Petrochemicals sector from the Greentech Foundation in 2009.

The Dahej Manufacturing Division received Runners up Award in the Gujarat State

Safety Award – 2007 (Petroleum Gas Generation & Distribution, Petrochemicals)

category. It was also selected for the lowest Disabling Injury Index (DII) in 2009.

The Hazira Manufacturing Division has won the ‘Golden Peacock Award for

Occupational Health & Safety’ in 2009.

The Hazira Manufacturing Division won the annual FICCI Award in the category of

environmental sustainability of businesses in 2009.

The Jamnagar Manufacturing Division (DTA Refinery) received the ‘International

Safety Award- 2008’ from the British Safety Council in 2009.

The Jamnagar Manufacturing Division received the ‘Golden Peacock Environment

Management Award 2009’ in the Petrochemicals sector in 2009.

The Jamnagar Manufacturing Division received the ‘Greentech Environment

Excellence Platinum Award 2009’ in the Petroleum Refinery sector in 2009.

The Naroda Manufacturing Division received a certificate of appreciation in

consideration of safety performance for the year 2008 from the Gujarat Safety Council

and the Director of Industrial Safety and Health in 2009.

The Patalganga Manufacturing Division was bestowed with the Dahanukar trophy for

the ‘Best Occupational Health Services in an Industry’ by the Indian Association of

Occupational Health (IAOH)

in 2009.

The Tapti Offshore Platform received the ‘Best Safety Performance Award for an

Offshore Platform’ at the annual Oil Industry Safety Awards in 2009

Training and Development

The Dahej Manufacturing Division received the ‘American Society for Training &

Development (ASTD) BEST Award-2008’ in 2009.

The Hazira Manufacturing Division bagged the ASTD ‘Excellence in Practice Award’

for Trucker Safety Training and ASTD ‘Excellence in Practice’ Citation for Total Quality

Management (TQM) and Six Sigma training case studies In 2009.

The Nagothane Manufacturing Division has been conferred with the ASTD ‘Excellence

in Practice’ Citation in 2009.

Quality

The Allahabad Manufacturing Division’s three Quality Circle (QC) projects received

‘excellent’, ‘distinguished’ and ‘meritorious’ category certifications from the National

Centre for Quality Control’s (NCQC) Kanpur Chapter; while the fourth QC project was

awarded ‘distinguished’ category certification by NCQC’s Bangalore chapter in 2009.

The Barabanki Manufacturing Division’s two QC projects received ‘excellent’ and

‘distinguished’ category certifications from the Quality Circle National Award in 2009.

The Hazira Manufacturing Division won the global award for ‘Best TQM Success Story’

at the International Forum of AOTS in 2009.

The Hazira Manufacturing Division won the Qualtech 2009 Excellence Award for its

Business Transformation in 2009.

The Hazira Manufacturing Division received the ‘PM SHRAM AWARD’ in recognition

of its Kaizen case studies in 2009.

At both the ‘National and Regional Quality Control Circle Events’, The Hazira

Manufacturing Division’s Quality Circles have won recognition, in 2009, for showcasing

its total employee involvement initiatives in shopfloor improvement case studies.

Energy Conservation / Efficiency

The Dahej Manufacturing Division received the India Chemical Council Award for

‘Excellence in Energy Conservation & Management 2008-09’ in 2009.

The Dahej Manufacturing Division was certified as an ‘Excellent Water Efficient Unit’

under the National Award for Excellence in Water Management-2009 by the

Confederation of Indian Industries (CII) in 2009.

The Dahej Manufacturing Division received the ‘Excellence in Energy Conservation &

Management Award – 2008’ from the Indian Chemical Council (ICC) in 2009.

The Hazira Manufacturing Division won the ‘Excellence in Energy Management 2009’

Award at the CII National Energy Summit in 2009 for the 9th time out of the 10 editions

till date and for the 6th consecutive time, thus qualifying for the ‘ENCON Champion of

the Year’.

The Jamnagar Manufacturing Division received the Oil & Gas Conservation Fortnight

(OGCF) Award - 2009 from the Centre for High Technology, Ministry of Petroleum &

Natural Gas, Government of India (GOI) in 2009.

The Jamnagar Manufacturing Division received the ‘Jawaharlal Nehru Centenary

Award for Energy Performance of Refineries’ for the year 2008-09 from the Centre for

High Technology, Ministry of Petroleum & Natural Gas, GOI in 2009.

The Jamnagar Manufacturing Division received the ‘National Award for Excellence in

Energy Management-2009’ from CII in 2009.

Technology, Patents, R&D and Innovation

The Jamnagar Manufacturing Division received the ‘National Award for the Most

Innovative Project in Energy Conservation -2009’ from CII in 2009.

The RTG at Hazira Manufacturing Division received the ‘Arch of Excellence for

Innovation’ and the ‘Rashtriya Ratan Award’ in 2009.

The RTG at Vadodra Manufacturing Division received the ‘Bhageerat Award’ in 2009

Corporate Social Responsibility

Gold Medal from the Indian Red Cross Society in recognition of the ‘Protsaham

Scheme’–for educational support to poor meritorious students in 2009.

Certificate of appreciation from the District Collector, East Godavari district in 2009 for

CSR initiatives in this region.

The Hazira Manufacturing Division won the ‘Arch of Excellence for CSR Outrech

Programmes’ at the AIAC Business Excellence Awards in 2009.

RELIANCE MUTUAL FUND

This groupdominates this key areain the financial

sector..This megabusiness houses show that it has assetsunder management ofRs. 90,938

crore(US$ 22.73 billion) andan investor base of over6.6

milli(Source:www.amfiindia.com).Reliance’s mutual fundschemes are managed byReliance

Capital AssetManagement LimitedRCAM),subsidiary of Reliance Capital Limited,which holds

93.37% ofthe paid- up capitalof RCAM.

The company notchedup a healthy growth ofRs. 16,354 crore(US$ 4.09 billion)in assets under

management in February2008 and helped propelthe total industry-wideAUM to Rs. 565,459

crore (US$ 141.36 billion)(Source: indiainvestments.com). A sharp rise infixed maturity plans

(FMPs) and collection ofRs. 7000 crore (US$ 1.75 billion) through newfund offers (NFOs)

created this surge. In AUrankings, Reliance continues to be in thenumber one spot.

India's Best Offering: Reliance Mutual Fund Investing has become global. Today, a lot of

countries are waking up to the reality that in order to gain financial growth, they must

encourage their citizens to not only save but also invest. Mutual funds are fast becoming the

mode of investment in the world.

In India, a mutual fund company called the Reliance Mutual Fund is making waves. Reliance is

considered India's best when it comes to mutual funds. Its investors number to 4.6 billion

people. Reliance Capital Asset Management Limited ranks in the top 3 of India's banking

companies and financial sector in terms of net value.

The Anil Dhirubhai Ambani Group owns Reliance; they are the fastest growing investment

company in India so far. To meet the erratic demand of the financial market, Reliance Mutual

Fund designed a distinct portfolio that is sure to please potential investors. Reliance Capital

Asset Management

Limited manages RMF.

Vision And Mission

Reliance Mutual Fund is so popular because it is investor focused. They show their dedication

by continually dishing out innovative offerings and unparalleled service initiatives. It is their

goal to become respected globally for helping people achieve their financial dreams through

excellent organization governance and customer care. Reliance Mutual fund wants a high

performance environment that is geared at making investors happy.

RMF aims to do business lawfully and without stepping on other people. They want to be able

to create portfolios that will ensure the liquidity of the investment of people in India as well as

abroad. Reliance Mutual Fund also wants to make sure that their shareholders realize

reasonable profit, by deploying funds wisely. Taking appropriate risks to reach the company's

potential is also one of Reliance Mutual Fund's objectives.

Training and Development:- •

Jamnagar Refinery was adjudged the winner of the

“Golden Peacock National Training Award -2007”.

Patalganga Manufacturing Division won the “ASTD (American Society for Training &

Development) Excellence in Practice Award” for innovative practice titled Learning Function’s

role as Business partner: Empowering people with Knowledge to achieve Business Goals.

Reliance won the CNBC TV-18 instituted Jobstreet.com

Jobseekers’ Employer of Choice Award.

Energy Excellence:- •

Exploration & Production (E&P) Division won “The

Infraline Energy Excellence Awards 2007: Hydrocarbon Columbus Award for Excellence in

Petroleum Exploration”.

•

Patalganga Manufacturing Division won the First Prize in “Energy Conservation in State of

Maharashtra” organized by Maharashtra Energy Development Agency (MEDA).

Jamnagar Manufacturing Division won the “Oil & Gas Conservation Award -2007” from the

Centre for High Technology, Ministry of Power & Natural Gas for the excellent performance in

reduction/elimination of steam leaks in the plant.•

Jamnagar Manufacturing Division was the recipient of the “Infraline Energy Award-2007” by

Ministry of Power.

Hazira Manufacturing Division won the Government of India Energy Conservation Award (2007)

conferred by the Bureau of energy efficiency and Ministry of Power.

Hazira Manufacturing Division was adjudged “Excellent Energy Efficient Unit” at Energy

Summit - 2007 by CII.

Vadodara Manufacturing Division received the CII award for “Excellence in Energy

Management - 2007” as energy efficient unit. This division also received the 2nd prize in

“National Energy Conservation Award –2007” from Bureau of Energy efficiency, Ministry of

Power, Government of India.

The Company’s manufacturing divisions at Vadodara and Hazira were honoured with CII-

National award for excellence in water management - 2007 as water efficient unit in “Within the

fence” category. Additionally, Hazira Manufacturing Division was honoured as water efficient unit

“Beyond the Fence” category.

Quality:- •

For the first time ever, globally, a petrochemical company bagged the “Deming Prize for

Management Quality”. “The Quality Control Award for Operations Business Unit 2007” was

awarded to the Hazira

Manufacturing Division for Outstanding Performance

by Practicing Total Quality Management.

•

“QUALTECH PRIZE 2007”, which recognizes extraordinary results in improvement and

innovation, was won by Hazira Manufacturing Division for its Small Group Activity Project.

•

Vadodara Manufacturing Division’s Polypropylene-IV (PP-IV) plant was conferred the

“Spheripol Process Operability Award-2006” for the highest operability rate with an on stream

factor 98.97% by M/s. BASELL, Italy.

Allahabad Manufacturing Division won the “Excellent Category Award” at National Convention

of Quality Circle (NCQC) - 07.

Six-Sigma:-

Lean Six sigma project on “Reducing retention time of caustic soda lye tankers at Jamnagar”

won the 1st prize in the national level competition held by Indian Statistical Institute (ISI).

Patalganga Manufacturing Division’s Six Sigma Project on Improve Transfer Efficiency for

Automatic winders in PFY won the 2nd Prize for “Best design for Six Sigma Project in

International Six Sigma Competition” organized by IQPC (International Quality and Productivity

center).

Barabanki Manufacturing Division won the 3rd prize in “All India Six Sigma case study contest

2008” for the Case study on “Reduction of waste of Plant 2 from 16% to 8%”.

Hoshiarpur Manufacturing Division won the 2nd prize in “Six Sigma competition at National

Level” organized by ISI and Quality Council of India (in manufacturing category), while

Dhenkanal and Barabanki Manufacturing Divisions won the 3rd prize.

Vadodara Manufacturing Division’s Six Sigma project won the 1st prize as the “Best Six Sigma

project” at National level by CII.

Achievements

In two successive joint surveys by The Economic Times’ Brand Equity andACNielsen,

Reliance was recognised as India’s Most Trusted Mutual Fund.Thecompanyalsowalked away

with seven other scheme prizes – five of them being outright winners – in the Gulf 2007 Lipper

Awards.These included the Fund House of the Year by Lipper GCC as well asICRA Online

and the Most Improved FundHouse by Asia Asset Management.It also received the NDTV

Business Leadership Award 2007 in the mutual fund category and runners’ up recognition as

the Best Fund House in theOutlook Money-NDTV Profit Awards. In addition,the company

received thecoveted CNBC Web18 Genius of the Web distinction for the Best Mutual Fund

Website inthe country. RCAM was awarded the India Onshore Fund House 2008 instituted by

theAsian Investor magazine.The company also won the India Equities award in the 5-

yearPerformance category.

3.. .RESEARCH METHDOLOGY

RESEARCH METHODOLOGY

Research as a care full investigation or enquiry specially through search for a new facts in any

branch of knowledge” Research is an academic activity and such as the term should be used

in technical sense.The manipulation of things , concepts or symbols for the purpose of

generalizing to extend ,correct or verify knowledge ,whether that knowledge through objective.

TITLE OF THE STUDY

FUTURE OF MUTUAL FUND

Working of a Mutual Fund -

DURATION OF THE PROJECT

Summer Training is an essential part in BBA curriculum. It enables the student to share the

real experience in industry. My summer training has placed in Reliance Mutule fund limited for

the period of 45 Days in jaipur

OBJECTIVE OF STUDY

Objectives:

1. To understand the basics of Mutual Funds and also what is their current popularity in

terms of how do investors rate them against other investment instruments.

2. To analyze the importance of mutual funds in today scenario

3. To know how many types of mutual funds exist in the market

4. To find the how a fund is being designed

5. To understand the risk involved in funds

6. To understand what competitive measures are being taken by a company for their

product

7. To recommend the strategies for the growth of funds

8. To understand the competitive environment in which the company is operating and

is   designed to meet customers need and satisfaction.

9. To analyze & help an investor in making a right choice of investments, while

considering the inherent risk factor

To give a brief idea about the benefits available from mutual Fund investment. To give an idea

of the types of schemes available. Explore the recent developments in the mutual funds in

India To give an idea about the regulations of mutual funds.To analyze reliance mutual fund

strategy against its competitor.

To give a brief idea about the benefits available from mutual Fund

Investment.

1 To give an idea of the types of schemes available.

2 Explore the recent developments in the mutual funds in India.

3 To give an idea about the regulations of mutual funds.

4 To analyze reliance mutual fund strategy against its competitor.

TYPES OF RESEARCH

ANALYTICAL RESERCH

In this project work, analytical research is used. In this project has to use facts or

information .Already used available ,and analyze these to make a critical evolution of the

material.

METHODS OF DATA COLLECTION

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

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.

collected to study the investment psyche of a person, their practice on saving, investment

options available and the need of financial planners to manage individual’s wealth.

Questionnaire was designed to ascertain the investor’s behavior as well as to depict the future

prospects and growth

The research methodology adopted was both Primary and Secondary. Primary data was

momentum of the wealth management industry

e) Sample Size and method of selecting sample

Data Collection Methods & Instruments

The instrument for data collection was a structured questionnaire targeted towards people who

do investments. This questionnaire was designed to know the investment psyche of a person

while investing in the financial products.

The mode of communication was informal & friendly conversation, which does not limit

discussion within a well-defined boundary.

The sample size of a statistical sample is the number of observations that constitute it. It is

typically denoted n, a positive integer (natural number).

Typically, all else being equal, a larger sample size leads to increased precision in estimates of

various properties of the population, though the results will become less accurate if there is a

systematic error in the experiment. This can be seen in such statistical rules as the law of large

numbers and the central limit theorem. Repeated measurements and replication of

independent samples are often required in measurement and experiments to reach a desired

precision

Selecting the Sample

The auditor should select the sample items in such a way that they are representative of the

population. The most commonly used sampling selection methods are:

Statistical Sampling Methods

o Random Sampling – ensures that all combinations of sampling units in the

population have an equal chance of selection.

o Systematic Sampling – involves selecting sampling units using a fixed interval

between selections with the first interval having a random start.

Non-Statistical Sampling Methods

o Haphazard Sampling – the auditor selects the sample without following a

structured technique.

o Judgmental Sampling – the auditor places a bias on the sample. For example,

selecting only sampling units over a certain value.

o

The selection of the sample size is affected by the level of sampling risk that the IT auditor is

willing to accept. Sampling risk is the risk the auditor’s conclusion may be different from the

conclusion that would be reached if the entire population were subjected to the same audit

procedure. The two types of sampling risk are:

1. The Risk of Incorrect Acceptance – the risk that a material misstatement is assessed as

unlikely, when in fact the population is materially misstated

2. The Risk of Incorrect Rejection – the risk that a material misstatement is assessed as

likely, when in fact the population is not materially misstated.

6-Scope of the study

1.To improve the organization effectiveness &

demand.

2. To motivate the employees for achieve max. goal.

3. To increase satisfaction label of the employees.

4. To heighten the morale of the employees.

7. Limitations

The time constraint was one of the major problems.

The study is limited to the different schemes availableunder the mutual funds

selected.

The study is limited to selected mutual fund schemes.

The lack of information sources for the analysis part.

In close-ended questionnaire, the option might not reveal the true feelings of the

participants

.There was lack of communication between departments.

Employees were hard worker but due to the work load they were not

enthusiastic energetic.

People have a very relaxed attitude.

The work is not challenging thus employees is not that active.

Role Clarity amongst the bottom line managers was not clear.

There was unclear authority and felt that they didn’t have the power to delegate

No proper sitting arrangement.

Lack of improper distribution channel

FACTS AND FINDINGS

1. In Equity Schemes we have taken Reliance Vision Fund and Reliance growth Fund. Both

schemes are open ended but Reliance Growth fund is more valuable for Reliance Mutual Fund

than reliance vision Fund.

2. In Debt scheme we have taken Reliance money Manager Fund and Reliance Liquidity Fund .In

it both schemes are open ended but reliance money manager is more beneficial for reliance

mutual fund.

3 In sector specific scheme we have taken Reliance media and entertainment fund and

Reliance Pharma fund scheme both is more efficient for Reliance Mutual Fund.

4. Above all the schemes of Reliance Mutual Fund Debt schemes are best

schemes for Mutual Fund.

5.There is a Good investment plan and saving scheme in reliance Mutual

Fund

o I got the knowledge of the “SERVICE AND OPERATION” of the company which is the

big finding for me. Threw that work I knew that how company give it’s service to it’s

customer agencies of firms and how company operate all that work.

o I found the knowledge about the “RECAL SOFTWARE”. How it work’s. How it is

important for the company.

o While doing the work in the company I knew about the internal environment of the

company. How much employ are satisfy with the company of with it’s work.

o While doing the work in the company I knew about the “RELIENCE INDUSTRY”, it’s

work, it’s future plans, market position, company’s working strategy.

DATA ANALYSIS AND INTERPRETATION

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

Fund ?

Company name Persentages of respondents

Reliance Money 25

HDFC 10

ICICI 15

INTERPRETATION: 50% of respondent have Reliance

Money , 30% of respondent says that other%.

2 Which banking mutual fund offer you good

investment plan?

Company name Persentages of respondents

Reliance 22

HDFC 21

ICICI 7

INTERPRETATION:

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

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

Company name Persentages of respondents

Reliance 20

HDFC 15

ICICI 15

INTERPRETATION:

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

.4 Which banking mutual fund offer you a large number

Of product and services?

Company name Persentages of respondents

Reliance 18

HDFC 16

ICICI 16

INTERPRETATION:

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

5 Which banking mutual fund offer you a good e-mail

facility ?

Company name Persentages of respondents

Reliance 22

HDFC 15

ICICI 13

INTERPRETATION:

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

Result:

As shown above chart 60% business men want to invest money into the mutual fund

because they have interest in mutual fund, maximum customers want to invest our money

into the mutual fund because their interest decreased in equity market they know that in this

field, risk is low compare to share market. 40% government employees want to invest your

money into the mutual fund, 56% youngsters and 40% private employees want to invest

money into the mutual fund.

Result:

From the above graph, mostly customers want to invest your money into the gold, they

purchased gold, according to customers, price of gold always increase and this is always

profitable in future. Youngsters and business men have interest in mutual fund; they like to

take risk because they know that, if risk is high then return may be high. 28% business

men,16% government employees, 40% youngsters, 20% private employees like to invest

money into the mutual fund.

Analysis

After completing my project successfully, I am going to conclude whatever I learned during my

summer project as well as training also.

Now a days people are getting awareness about mutual fund, but some where they

lack a proper guidance about how they works, and how to invest, in what type of

fund  they should invest.

Investors are more interested in equity fund rather than others because equity funds

give good returns.

Investors scared about the risk factor they need proper guidance about the risk factor

how mutual fund dilute the risk by investing in different companies of different

sectors.

A huge potential market is hidden in rural area, people are interested to investing in

other sources besides bank and post office saving schemes, but they are not getting

proper guidance.

According to present scenario due to some factors like increasing inflation and

increasing interest rate investors are avoiding mutual fund because banks are also

giving the interest at near about 10% so people don’t want to take risk by investing in

mutual funds.

The performance of mutual funds is not up to the investor’s expectation due to sub prime

crisis, so it is tuff time to attract investors.

 

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.

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

ICICI.

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

ICICI.

SWOT ANALYSIS

A type of fundamental analysis of the health of a company by examining its strengths(S),

weakness (W), business opportunity (O), and any threat (T) or dangers it might be exposed to.

1. I. STRENGTHS

Brand strategy : as opposed to some of its competitors (e.g. HSBC), Reliance ADAG

operates a multi-brand strategy. The company operates under numerous well-known

brand names, which allows the company to appeal to many different segments of the

market.

Distribution channel strategy : Reliance is continuously improving the distribution of its

products. Its online and Internet-based access offers a combination of excellent growth

prospects and its retail direct business also saw growth of 27% in 2002 and 15% in

2003.

Various sources of income : Reliance has many sources of income throughout the

group, and this diversity within the group makes the company more flexible and

resistant to economic and environmental changes.

Large pool of installed capacities.

Experienced managers for large number of Generics.

Large pool of skilled and knowledgeable manpower.

Ø Increasing liberalization of government policies.

1. II. WEAKNESS

Emerging markets : since there is more investment demand in the United States,

Japan and the rest of Asia, Reliance should concentrate on these markets, especially in

view of low global interest rates.

Mutual funds are like many other investments without a guaranteed return: there is

always the possibility that the value of your mutual fund will depreciate. Unlike fixed-

income products, such as bonds and Treasury bills, mutual funds experience price

fluctuations along with the stocks that make up the fund. When deciding on a particular

fund to buy, you need to research the risks involved – just because a professional

manager is looking after the fund, that doesn’t mean the performance will be stellar.

Fees: In mutual funds, the fees are classified into two categories: shareholder fees and

annual operating fees. The shareholder fees, in the forms of loads and redemption fees

are paid directly by shareholders purchasing or selling the funds. The annual fund

operating fees are charged as an annual percentage – usually ranging from 1-3%.

These fees are assessed to mutual fund investors regardless of the performance of the

fund. As you can imagine, in years when the fund doesn’t make money, these fees only

magnify losses.

1. III. OPPORTUNITIES

Potential markets : The Indian rural market has great potential. All the major market

leaders consider the segments and real markets for their products. A senior official in a

one of the leading company says foray into rural India already started and there has

been realization that the rural market is both price and quantity conscious.

Entry of MNCs : Due to multinationals are entering into market job opportunities are

increasing day by day. Also India Mutual Fund majors are tie up with other financial

institutions.

1. IV. THREATS

Increased Competition : With intense competition by so many local players causing

headache to the current marketers. In addition to this though multinational brands are

not yet established but still they will soon hit the mark. Almost 60 to 70% of the revenue

is spending on the management and services.

Hedge funds : sometimes referred to as ‘hot money’, are also causing a threat for

mutual funds have gained worldwide notoriety for bringing the markets down. Be it a

crash in the currency, stock or bond market, usually a hedge fund prominently figures

somewhere in the picture.

STRENGTHS •

Corporate memberships

•

Wider product offerings

•

Greater reliance on research

•

Accessing equity capital markets

•

Foreign collaborations and joint ventures

•

Specialized services/niche broking

•

Online broking

WEAKNESS

The major weakness of the Reliance Company that only 27% customer not satisfied with

Reliance Mutual Fund. Because of there are many problems to the customer’s side.

Promotional activities of the company are not affecting the people of jodhpur.

OPPORTUNITIES:

It can advertise its products in by endorsing it through celebrities in order to fund.

Reliance mutual fund should launch a scheme for their consumer.

THREATS:

The company is facing strong competition from other companies like HDFC, Kotak Mahindra

etc.

Conclusion

With the globalize economy and immense competition among countries for faster development

of their respective economies, the significance of Mutual Funds and Foreign investment has

taken manifold. With a buoyant vibrant and experienced stock market, India today is looking

ahead to surpass China in terms of foreign Investment and growth prospects. Stock exchange

being the barometer of the economy plays a vital role in showcasing growth of an economy

and luring investment. While studying the role of Mutual fund and FIIs in Stock Market, I

discussed with a few persons who are into stock broking business. And the information they

have provided shows that though the investment and participation of domestic investors are

rising, still, they have not been able to prove themselves to be as influential as mutual funds

and FIIs.

Importance and the role of Mutual funds and FIIs play in the Indian stock market can be seen

from the fact that the recent surge in Sensex and NIFTY is attributed to the active participation

of FIIs in the Stock Market. Despite being aware of the Asian economic crisis where FIIs role

was of a major concern, the importance of foreign capital in the development of economy can

not be undermined in anyway so the people more emphasis on mutual fund to earn more

return increasing our benefit .

Mutual Fund investment is better than other raising fund .

Reliance Mutual Fund have good returns in investment .

A good brand is always welcomed over here people are

more aware and conscious for 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 industry in India and is still

exploring its potential and prospects in here.

Recommendation and suggestions

The most vital problem spotted is of ignorance. Investors should be made aware of the

benefits. Nobody will invest until and unless he is fully convinced. Investors should be made

to realize that ignorance is no longer bliss and what they are losing by not investing.

Mutual funds offer a lot of benefit which no other single option could offer. But most of the

people are not even aware of what actually a mutual fund is? They only see it as just another

investment option. So the advisors should try to change their mindsets. The advisors should

target for more and more young investors. Young investors as well as persons at the height

of their career would like to go for advisors due to lack of expertise and time.

The advisors may try to highlight some of the value added benefits of Mutual funds such as

tax benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these

benefits are not offered by other options single-handedly. So these are enough to drive the

investors towards mutual funds. Investors could also try to increase the spectrum of services

offered.

Now the most important reason for not availing the services of advisors was spotted was

being expensive. The advisors should try to charge a nominal fee at the beginning. But if not

possible then they could go for offering more services and benefits at the existing rate. They

should also maintain their decency and follow the code of ethics so that the investors could

trust upon them. Thus the advisors should try to attract more and more persons and turn

them into investors and finally their clients.

It was a gratifying experience to be in corporate and work as a trainee with the brand name of

Reliance Mutual Fund. During my Project I came to know much more about the mutual funds,

how they work, what are the norms of SEBI to to regulate the AMCs. I have learnt so many

things also which I can not explain in my report. I got the opportunity during my project to

comparatively analyze two funds and give the recommendations also.

What ever I learnt during the completion of my project on behalf of that I am recommending to

the Reliance Mutual Funds

Asset management companies need to proper educate the investor to increase the

awareness and break the myths about mutual fund.

Mutual und distributors like Reliance Mutual Fund should start a campaign to educate

the investors: there is a need of advertisement also to attract the investor.

AMCs should target rural market as a potential hub of customer. In rural area people

are getting wealth gradually and need a guidance to shift their portfolio from old

sources to new and modern sources.

Sales force should be well educated about every aspect of mutual fund so that they

can solve the queries of the investors.

Reliance Money have to add some extra features in it

with aggressive marketing promotional strategy.

• Advertisement on television is the main source of

attraction so the company must advertise its products

heavily.

• Product must be improved .

There should be provision of complain suggestion

boxes at each branch.

APPENDIX

QUESTIONNAIR

1. Qualification:-

Graduation/PG

Under Graduate

Others

2.Occupation. Pl tick (√)

Govt. Sector

Pvt. Sector

Business

Agriculture

Others

3.what is your monthly family income approximately? Pl tick (√).

Up to Rs.10,000

Rs. 10,001 to 15000

Rs. 15,001 to 20,000

Rs. 20,001 to 30,000

Rs. 30,001 and above

4.What kind of investments you have made so far? Pl tick (√).

a. Saving account

b. Fixed deposits

c. Insurance

d. Mutual Fund

e. Post Office-NSC, etc

f. Shares/Debentures

5. While investing your money, which factor will you prefer?

(a) Liquidity

(b) Low Risk

(c) High Return

(d) Trust

6. Are you aware about Mutual Funds and their operations? Pl tick

Yes

No

7. If yes, how did you know about Mutual Fund?

a. Advertisement

b. Peer Group

c. Banks

d. Financial Advisors

8.Have you ever invested in Mutual Fund? Pl tick (√).

Yes

No

9. If not invested in Mutual Fund then why?

(a) Not aware of MF

(b) Higher risk

(c) Not any specific reason

10. which banking mutual fund do you prefer for mutual Fund?

A-Reliance Money

B- HDFC

C- ICICI

11. Which banking mutual fund offer you good investment plan?

A- Reliance Money

B - HDFC

C- ICICI

1. Do you know, what is mutual fund?

a) Yes

b) no

2. Do you want to invest your money into the mutual fund?

a) Yes

b) no

3. Is Mutual fund always risk free?

a) yes

b) No

c)I don’t know

4. Do you want to invest your money into the given following sector?

a) Mutual fund

b) Property

c) Gold

d) Shares

e) Insurance

5. If yes, Which AMC (asset Management Company) will you prefer?

a) Reliance mutual fund

b) HDFC mutual fund

c) Birla sun life mutual fund

d) Kotak Mahindra mutual fund

e) other

6. How many AMC’s mutual fund do you have?

a) One

b) Two

c) More than two

d) None

. According to you which company has more demand in the market?

a) Reliance mutual fund

b) HDFC mutual fund

c) Birla sun life mutual fund

d) Kotak Mahindra mutual fund

e) other

8. Which AMC provides better service?

a)Reliance mutual fund

b)HDFC mutual fund

c)Kotak Mahindra mutual fund

d)other

9. Are you satisfied by the services provided by reliance mutual fund?

) Yes

b) No

10. What is your view about reliance mutual fund?

___________________________________________________________________

_________________________________________________________

BIBLIOGRAPHY

Websites:

www.reliancemoney.com

www.HDFC.com

www.icicidirect.com

Reference books:

•FINANCIAL INSTITUTIONS AND MARKETS - L.M.BHOLE

•INVESTMENT MANAGEMENT - V.K.BHALLA

Research Methodology– Kothari

Security Analysis and Portfolio Management : Donald E Fischer,

Ronald J Jordan

• How to rate management of mutual funds : Harvard Business review

• Association of mutual funds in India (AMFI) Publications and quarterly

reports

• Securities and Exchange Board of India

• Investopedia

• Mutual Fund Performance : W. Sharpe