A Project Report On COMPARATIVE STUDY IN EQUITY SCHEMES OF VARIOUS COMPANIES MUTUAL FUND At Reliance Life Insurance

Page " 82









Table 5.15 Frequency invest in mutual fund scheme because



Table 5.16 Frequency not invested in mutual fund



Table 5.12 Frequency Of look before invest in mutual fund



Table 5.13 Frequency Of gather information about performance mutual fund scheme


A Project Report
On
COMPARATIVE STUDY IN EQUITY SCHEMES OF VARIOUS COMPANIES MUTUAL FUND
At
Reliance Life Insurance


In partial fulfilment of the requirements of Summer Internship Programme in the Masters in Business Administration programme of Gujarat Technological University


Submitted to Prof. Shweta Bambuwala


Submitted By
Darshan Patil
137140592040
Batch -2013-15

GLS INSTITUTE OF COMPUTER TECHNOLOGY (GLSICT - MBA)













Company Certificate Page
GLS Institute of Computer Technology (GLSICT – MBA)


Certificate

This is to certify that Mr. Darshan Patil EnrolmentNo. 137140592040, student of GLS Institute of Computer Technology (GLSICT-MBA) has successfully completed his Summer Project on "Topic" at "Company Name" in partial fulfillment of the requirements of MBA programme of Gujarat Technological University. This is his original work and has not been submitted elsewhere.




_______________Dr. Hitesh RuparelDirector____________________Prof. Shweta Bambuwala Project GuideProject Guide Name
_______________
Dr. Hitesh Ruparel
Director
____________________
Prof. Shweta Bambuwala
Project Guide
Project Guide Name





Date:


Place: Ahmedabad

Declaration



I, Darshan Patil Enrolment No. 137140592040 student of GLS Institute of Computer Technology - MBA hereby declare that I have successfully completed this project on 'Comparative study in Equity Schemes of Various Companies Mutual Fund' in the academic year 2013-14

I declare that this submitted work is done by me and to the best of my knowledge; no such work has been submitted by any other person for the award of degree or diploma.
I also declare that all the information collected from various secondary and primary sources has been duly acknowledged in this project report.






Darshan Patil(137140592040)

Darshan Patil
(137140592040)






PREFACE

In MASTERS IN BUSINESS ADMINISTRATION Theory of any subject is important but without its practical knowledge it becomes unless particularly for the Management Students.

As a student of the Business Administration, we have studied many theories and concepts in the classroom, but only after taking up this project work we have experienced & understood these Management theories & practices in its fullest sense, which plays a very vital role in business field today.

The knowledge of management is incomplete without knowing the practical application of the theories studied.

This training provides golden opportunity for all students, especially when the management student does not have prefect understanding of the working of a unit. Hence, this report is designed with the objective to know the equity schemes in mutual fund and get practical knowledge of the same.







ACKNOWLEDGEMENT

I am glad to express my profound sentiments of gratitude to all who rendered their valuable help for the successful completion of this project report titled, ― Comparative study in equity schemes of various companies Mutual fund.

I would like to thank Mr.Dhaval Mistry Executive Sales Manager and Mr. Anurag Branch Manager for giving me his valuable guidance, deep insight into project work and giving us the proper training.

Mrs. Shweta Bambuwala - Faculty of GLSICT of business management, our internal guide who helped us about the project and give valuable suggestions and opinions for the project. I would also like to thank our Director Sir, Mr. Hitesh Ruparal for giving us a peaceful and calm atmosphere to help in our Study.

I express my Gratitude to the GLSICT of Management for the support and the environment it has provided us. My genuine sense of gratitude goes to the Gujarat Technological University that gave me a chance to brighten my academic qualification that provided me this opportunity to have a practical knowledge of relevant fields.




EXECUTIVE SUMMARY

Now a day, there is a tough competition in financial revenues due to increase in the investment products. People can get many investment options to invest their savings. Selecting one from the many available options considering many associated factors is a very complex process.

Reliance Mutual Fund is one of India's largest brokerage and securities distribution house in India. It is new to Securities market but still among the top 5 performing company leaving far behind the oldest companies. It is considered to be one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-coordinators.

In this project I studied the Equity schemes of Mutual fund and their returns in various period of time which helped me in knowing how the various schemes are performing and the reasons behind it. I also came to know the risk associated with the various schemes and how risk and returns are related. Hence my topic of study is "Comparative study in Equity Schemes of Various Companies Mutual Fund."






TABLE OF CONTENT

CHAPTER NO.

TITLE


PAGE NO.


COMPANY CERTIFICATE

2


INSTITUTE CERTIFICATE
3


DECLARATION
4


PREFACE
5


ACKNOWLEDGEMENT
6


EXECUTIVE SUMMARY
7
1

RESEARCH METHODOLOGY
10

1.1
Problem Statement
11

1.2
Literature Review
11

1.3
Objectives of project
16

1.4
Scope of the study
16

1.5
Sampling
16

1.6
Limitations of the study
17

1.7
Research Design
17

1.8
Data Collection Source
17
2

INDUSTRY PROFILE
19
3

COMPANY PROFILE
39
4

INTRODUCTION OF TOPIC
53
5

DATA ANALYSIS
55
6

FINDINGS
76
7

SUGGESTIONS & CONCLUSION
77
8

BIBLIOGRAPHY
79
9

ANNEXURE
80


TABLE OF CHARTS

Table 5.1 Frequency of No. Of Category………………………………………………..56
Table 5.2 Frequency No. Of Income…………………………………………………….57
Table 5.3 Frequency No. Of Savings……………………………………………………58
Table 5.4 Frequency % Of Total Income………………………………………………..59
Table 5.5 Frequency Of Investors in Mutual Fund……………………………………..60
Table 5.6 Frequency Of most preferred Mutual Fund schmes………………………….61
Table 5.7 Frequency Of Equity funds Category………………………………………….62
Table 5.8 Frequency Of Knowledge Share Market……………………………………….63
Table 5.9 Frequency Of aware companies invest in share market………………………..64
Table 5.10 Frequency Of factors consider to invest in Mutual Fund…………………….65
Table 5.11 Frequency Of advantages to invest in Mutual Fund………………………….67
Table 5.12 Frequency Of look before invest in mutual fund……………………………..68
Table 5.13 Frequency Of gather information about performance mutual fund scheme…70
Table 5.14 Frequency Of how many years investing mutual fund scheme……………..71
Table 5.15 Frequency invest in mutual fund scheme because……………………………72
Table 5.16 Frequency not invested in mutual fund……………………………………….75


CHAPTER - 1 RESEARCH METHODOLOGY











Need for the Study:
The study will help the organization in knowing how the Equity schemes of the company's are performing and which schemes are preferred most by the investors.

LITERATURE REVIEW:
Sapar & Narayan(2003)
Examines the performance of Indian mutual funds in a bear market through relative performance index, risk-return analysis, Treyor's ratio, Sharp's ratio, Sharp's measure with a sample of 269 open ended schemes (out of total schemes of 433).
Rao D. N (2006)
Studied the financial performance of select open-ended equity mutual fund schemes for the period 1st April 2005 - 31st March 2006 pertaining to the two dominant investment styles and tested the hypothesis whether the differences in performance are statistically significant. The analysis indicated that growth plans have generated higher returns than that of dividend plans but at a higher risk studied classified the 419 open-ended equity mutual fund schemes into six distinct investment styles.

Agrawal Deepak & Patidar
Deepak (2009) studied the empirically testing on the basis of fund manager performance and analyzing data at the fund-manager and fund-investor levels. The objective of the study is to provide an overview of mutual fund activity in emerging markets, to describe their size, asset allocation, to analyze the Indian Mutual Fund Industry pricing mechanism with empirical studies on its valuation, to analyze data at both the fund-manager and fund-investor levels. The study reveled that the performance is affected saving and investment habits of the people at the second side the confidence and loyalty of the fund Manager and rewards affects the performance of the MF industry in India.

Mehta Sushilkumar (2010)
Analyze the performance of mutual fund schemes of SBI and UTI and found out that SBI schemes have performed better then the UTI in the year 2007-2008 studied the risk and return relationship of Indian mutual fund schemes. The study found out that out of thirty five sample schemes, eleven showed significant t–values and all other twenty four sample schemes did not prove significant relationship between the risk and return. According to t-alpha values, majority (thirty two) of the sample schemes' returns were not significantly different from their market returns and very few number of sample schemes' returns were significantly different from their market returns during the study period.

Mr. Vijay Anand (2000)
Mr. Vijay Anand in IFMR, Chennai (June 2000).The study focused on to understand the position of the schemes of birla sunlife and the competitors schemes available in the market. The study did Analysis of Performance of Equity fund for 3 years and SWOT Analysis of Birla Sunlife by Literature survey, Delphi technique, in depth financial review to identify among the selected equity funds that earns higher returns than benchmark and competitors and concluded that Birla Sunlife performs well compared to the benchmarks and competitors.

R.Nithya (2004)
R.Nithya in the IFMR Chennai (2004). The objective of the study is to analyse the performance of all the schemes available in the Franklin Templeton Mutual funds and Emphasize the values of mutual funds to the target people by identifying Asset Management Company that is performing well and identifying the top schemes in the category such as equity, balanced, Monthly Income Plan (MIP) & Income in the AMC. The AMC chosen was Franklin Templeton Mutual funds and it performed well and met the expectations.

Prasath.R.H (2009)
The study is trying to emphasize the core values of mutual fund investment, benefits of mutual funds, types of mutual funds, etc., The study is going to conducted by taking the NAV values of different types of HDFC mutual fund products. The study concludes that before choosing the mutual fund scheme, the investor should undergo fact sheet thoroughly and he has to choose the best one by calculating NAV calculation. If the investor finds difficulty of getting Rp, Rf, Standard deviation, and Beta parameters, NAV calculations are the best alternative to assess the performance.

Dr S Narayan Rao (2002)
The Study is conducted to understand whether most of the mutual fund schemes were able to satisfy investor's expectations by giving excess returns over expected returns. The objective of this study was to evaluate the performance of Indian Mutual Fund Schemes during bear market through relative performance index (RPI), risk- return analysis. The research study concluded that out of 269 schemes, 49 were under performers, 102 were par performers and 118 were out performers of the market and Medium Term Debt Funds were the best .It was also concluded that 58 of 269 open ended mutual funds have provided better returns than the market during the bear period of September 98-April 2002. Some of the funds provided excess returns over expected returns based on both premium for systematic risk and total risk.

Sharad Panwar and Dr. R. Madhumathi (2005)
The objective of the study is to identify differences in characteristics of public-sector sponsored & private-sector sponsored mutual funds and to find the extent of diversification in the portfolio of securities of public-sector sponsored and private-sector sponsored mutual funds and to compare the performance of public-sector sponsored and private-sector sponsored mutual funds using traditional investment measures. The study found that public-sector sponsored , private-sector Indian sponsored and private-sector foreign sponsored mutual funds do not differ statistically in terms of portfolio characteristics such as net assets, common stock%, market capitalization, holdings, Top Ten %. Portfolio risk characteristics measured through private-sector Indian sponsored mutual funds seems to have outperformed both Public- sector sponsored and Private-sector foreign sponsored mutual funds.

Jaspal Singh and Subhash Chander (2006)
The results show that the investors consider gold to be the most preferred form of investment, followed by NSC and Post Office schemes. Hence, the basic psyche of an Indian investor, who still prefers to keep his savings in the form of yellow metal, is indicated. Investors belonging to the salaried category, and in the age group of 20-35, years showed inclination towards close-ended growth (equity-oriented) schemes over the other scheme type.

Dr. S. Anand & Dr. V Murugaiah (2003)
The purpose of this study is to apply the measurement tools of modern portfolio theory to the performance of mutual funds. The study aims to examine the degree of correlation that exists between fund and market return, to understand the impact of fund specific characteristics on performance ,to evaluate the diversification and selectivity skills of fund managers. The study concluded on the basis of overall analysis in can be inferred here that the additional return on sampled schemes and the market over risk free return was significantly low during the study period. The study covers the period between April 1999 and March 2003 This indicates that the majority of schemes were showed underperformance in comparison with risk free return.

Soumya Guha Deb, Prof. Ashok Banerjee ,Prof. BB Chakrabarti in IIM, Calcutta (2005)
The research "Performance of Indian Equity Mutual Funds, Their Style Benchmarks– an Empirical Exploration" is done by. Indian equity mutual funds and to perform a return based style analysis of equity mutual funds in India and analyzed their relative performance with respect to style benchmarks. The analysis shows that Indian equity mutual fund managers have not been able to beat their style benchmarks on the average. It also shows that although all the funds in our sample are equity funds, the fixed income asset classes have come out important components of their style exposures, may be due to sticky returns of their component securities. The most important component of their style exposures are the mid cap stocks. This may indicate actual investment in those stocks, or in some other stocks that behaved like the mid cap index.

Mohit Gupta and Navdeep Agarwal (2009)
There is very little research on the construction of mutual fund portfolio. The present study seeks to fill this gap. The objective of the research is to construct the portfolio using uses the cluster method, taking industry concentration as a variable and to compare the performance of two types of portfolios with selected benchmarks, selected according to the prevalent modes of mutual fund purchase Results are found to be encouraging, as far as risk mitigation is concerned. This study also expected to help in the construction of funds.
Objectives:
To know the Performance of the preferred by comparison of Mutual Fund.
To understand the concept of Mutual Fund its working, mechanism and types traded in India.
To compare the risk and return associated with the Equity Schemes of Reliance Mutual Fund.
To know which scheme of Equity of Reliance Mutual Fund is most preferred by the investors and what factors they consider while investing in reliance mutual fund.

Scope Of Project:
The Equity Schemes were categorized and selected on evaluating their performance and
Relative risk. The scope of the project is mainly concentrated on the various companies mutual funds such as equity schemes.

Sample Size:
100 Mutual fund Investors

Sampling Method:
The sampling method is convenience sampling and sampling technique is non probability sampling.

Area of research: Ahmedabad City

Research design :
The research is done to find out preference level of investor's towards reliance mutual fund so it is a Conclusive type of research.
Further the study is about analyzing why people prefer other investment, so a Descriptive Research style is used.

Data Source:
The Data collected is of the Primary & Secondary type:
Primary Data: Primary data was collected by administering questionnaire. It is systematic collection of information directly from the Mutual Fund Investors. The basic purpose of collecting primary data is to know the preferred Equity Schemes of Mutual funds
Secondary data: Secondary data's are collected from Companies website, financial journals, recent Fact sheet of mutual fund relating to mutual funds

Limitations of the study:
Research cannot be taken for entire population.
The data collection was strictly confined to secondary sources. Primary data was associated with only the survey conducted on the investors.
Collecting historical NAV is very difficult.
Selection of schemes for study is very difficult because lot of Varieties in equity Schemes
To get an insight in the process of risk and return and deployment of funds by fund manager is difficult.
The project is unable to analyse each and every equity scheme of mutual funds to create awareness about risk and return. The risk and return of mutual fund equity schemes can change according to the market conditions.
Questionnaire method which is adopted for collecting data has its own limitations.
It may be hard for participants to recall information or to tell the truth about a controversial question.
Sample size is also the limited.
Some of the respondents of the survey were unwilling to share information.
Some of the respondents could not answer the questions due to lack of knowledge.
Period of Study:
The period of our research study is of 6 weeks.










CHAPTER – 2 INDUSTRY PROFILE

Definition:
A mutual fund is an investment vehicle which allows investors with similar (one could say mutual) investment objectives, to pool their resources and thereby achieve economies of scale and diversification in their investing.

History:
A mutual fund is a financial intermediary that pools the savings of investors for collective investment in a diversified portfolio of securities. A fund is "mutual" as all of its returns, minus its expenses, are shared by the fund's investors.

The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 defines a mutual fund as a 'a fund established in the form of a trust to raise money through the sale of
units to the public or a section of the public under one or more schemes for investing in securities, including money market instruments'.

According to the above definition, a mutual fund in India can raise resources through sale of units to the public. It can be set up in the form of a Trust under the Indian Trust Act. The
definition has been further extended by allowing mutual funds to diversify their activities in the following areas:
· Portfolio management services
· Management of offshore funds
· Providing advice to offshore funds
· Management of pension or provident funds
· Management of venture capital funds
· Management of money market funds
· Management of real estate funds
A mutual fund serves as a link between the investor and the securities market by mobilising savings from the investors and investing them in the securities market to generate returns.
Thus, a mutual fund is akin to portfolio management services (PMS). Although, both are conceptually same, they are different from each other. Portfolio management services are offered to high net worth individuals; taking into account their risk profile, their investments are managed separately. In the case of mutual funds, savings of small investors are pooled under a scheme and the returns are distributed in the same proportion in which the investments are made by the investors/unit-holders.
Mutual fund is a collective savings scheme. Mutual funds play an important role in mobilising the savings of small investors and channelising the same for productive ventures in the Indian economy.

The history of mutual funds, dates back to 19th century Europe, in particular, Great Britain. Robert Fleming set up in 1868 the first investment trust called Foreign and Colonial Investment Trust which promised to manage the finances of the moneyed classes of Scotland by spreading the investment over a number of different stocks. This investment trust and other investment trusts which were subsequently set up in Britain and the US, resembled today's close-ended mutual funds. The first mutual fund in the US, Massachusetts Investors'
Trust, was setup in March 1924. This was the first open-ended mutual fund.

The stock market crash in 1929, the Great Depression, and the outbreak of the Second World War slackened the pace of growth of the mutual fund industry. Innovations in products
and services increased the popularity of mutual funds in the 1950s and 1960s. The first international stock mutual fund was introduced in the US in 1940. In 1976, the first tax-exempt municipal bond funds emerged and in 1979, the first money market mutual funds were created. The latest additions are the international bond fund in 1986 and arm funds in 1990. This industry witnessed substantial growth in the eighties and nineties when there was a significant increase in the number of mutual funds, schemes, assets, and shareholders. In the US, the mutual fund industry registered a ten fold growth in the eighties (1980-89) only, with 25% of the household sector's investment in financial assets made through them. Fund assets
increased from less than $150 billion in 1980 to over $4 trillion by the end of 1997. Since 1996, mutual fund assets have exceeded bank deposits. The mutual fund industry and the
banking industry virtually rival each other in size.














CONCEPT OF MUTUAL FUNDS







BUSINESS STRUCTURE OF MUTUAL FUND



Benefits of Mutual Funds
An investor can invest directly in individual securities or indirectly through a financial intermediary. Globally, mutual funds have established themselves as the means of investment
for the retail investor.
1. Professional management: An average investor lacks the knowledge of capital market operations and does not have large resources to reap the benefits of investment. Hence, he
requires the help of an expert. It, is not only expensive to 'hire the services' of an expert but it is more difficult to identify a real expert. Mutual funds are managed by professional managers who have the requisite skills and experience to analyse the performance and prospects of companies. They make possible an organised investment strategy, which is hardly possible for an individual investor.
2. Portfolio diversification: An investor undertakes risk if he invests all his funds in a single scrip. Mutual funds invest in a number of companies across various industries and sectors. This diversification reduces the riskiness of the investments.
3. Reduction in transaction costs: Compared to direct investing in the capital market, investing through the funds is relatively less expensive as the benefit of economies of
scale is passed on to the investors.
4. Liquidity: Often, investors cannot sell the securities held easily, while in case of mutual funds, they can easily encash their investment by selling their units to the fund if it is an
open-ended scheme or selling them on a stock exchange if it is a close-ended scheme.
5. Convenience: Investing in mutual fund reduces paperwork, saves time and makes investment easy.
6. Flexibility: Mutual funds offer a family of schemes, and investors have the option of transferring their holdings from one scheme to the other.
7. Tax benefits Mutual fund investors now enjoy income-tax benefits. Dividends received from mutual funds' debt schemes are tax exempt to the overall limit of Rs 9,000 allowed under section 80L of the Income Tax Act.
8. Transparency Mutual funds transparently declare their portfolio every month. Thus an investor knows where his/her money is being deployed and in case they are not happy with the portfolio they can withdraw at a short notice.
9. Stability to the stock market Mutual funds have a large amount of funds which provide them economies of scale by which they can absorb any losses in the stock market and continue investing in the stock market. In addition, mutual funds increase liquidity in the money and capital market.
10. Equity research Mutual funds can afford information and data required for investments as they have large amount of funds and equity research teams available with them.



Growth of Mutual Funds in India
The Indian mutual fund industry has evolved over distinct stages. The growth of the mutual fund industry in India can be divided into four phases: Phase I (1964-87), Phase II (1987-92),
Phase III (1992-97), and Phase IV (beyond 1997).
Phase I: The mutual fund concept was introduced in India with the setting up of UTI in 1963. The Unit Trust of India (UTI) was the first mutual fund set up under the UTI Act, 1963, a special act of the Parliament. It became operational in 1964 with a major objective of mobilising savings through the sale of units and investing them in corporate securities for
maximising yield and capital appreciation. This phase commenced with the launch of Unit Scheme 1964 (US-64) the first open-ended and the most popular scheme. UTI's investible
funds, at market value (and including the book value of fixed assets) grew from Rs 49 crore in1965 to Rs 219 crore in 1970-71 to Rs 1,126 crore in 1980-81 and further to Rs 5,068 crore by June 1987. Its investor base had also grown to about 2 million investors. It launched innovative schemes during this phase. Its fund family included five income-oriented, open-ended schemes, which were sold largely through its agent network built up over the years. Master share, the equity growth fund launched in 1986, proved to be a grand marketing success. Master share was the first real close-ended scheme floated by UTI. It launched India Fund in 1986-the first Indian offshore fund for overseas investors, which was listed on the London Stock Exchange (LSE). UTI maintained its monopoly and experienced a consistent growth till 1987.
Phase II: The second phase witnessed the entry of mutual fund companies sponsored by nationalised banks and insurance companies. In 1987, SBI Mutual Fund and Canbank Mutual
Fund were set up as trusts under the Indian Trust Act, 1882. In 1988, UTI floated another offshore fund, namely, The India Growth Fund which was listed on the New York Stock
Exchange (NYSB). By 1990, the two nationalised insurance giants, LIC and GIC, and nationalised banks, namely, Indian Bank, Bank of India, and Punjab National Bank had started operations of wholly-owned mutual fund subsidiaries. The assured return type of schemes floated by the mutual funds during this phase were perceived to be another banking product offered by the arms of sponsor banks. In October 1989, the first regulatory guidelines were issued by the Reserve Bank of India, but they were applicable only to the mutual funds sponsored by FIIs. Subsequently, the Government of India issued comprehensive guidelines in June 1990 covering all 'mutual funds. These guidelines emphasised compulsory registration with SEBI and an arms length relationship be maintained between the sponsor and asset management company (AMC). With the entry of public sector funds, there was a tremendous growth in the size of the mutual fund industry with investible funds, at market value, increasing to Rs 53,462 crore and the number of investors increasing to over 23
million. The buoyant equity markets in 1991-92 and tax benefits under equity-linked savings schemes enhanced the attractiveness of equity funds.
Phase III: The year 1993 marked a turning point in the history of mutual funds in India. Tile Securities and Exchange Board of India (SEBI) issued the Mutual Fund Regulations in January 1993. SEBI notified regulations bringing all mutual funds except UTI under a common regulatory framework. Private domestic and foreign players were allowed entry in the mutual fund industry. Kothari group of companies, in joint venture with Pioneer, a US fund company, set up the first private mutual fund the Kothari Pioneer Mutual Fund, in 1993. Kothari Pioneer introduced the first open-ended fund Prima in 1993. Several other private sector mutual funds were set up during this phase. UTI launched a new scheme, Master-gain, in May 1992, which was a phenomenal success with a subscription of Rs 4,700 crore from 631akh applicants. The industry's investible funds at market value increased to Rs 78,655 crore and the number of investor accounts increased to 50 million. However, the year 1995 was the beginning of the sluggish phase of the mutual fund industry. During 1995 and 1996, unit holders saw an erosion in the value of their investments due to a decline in the NA V s of the equity funds. Moreover, the service quality of mutual funds declined due to a rapid growth in the number of investor accounts, and the inadequacy of service infrastructure. A lack of performance of the public sector funds and miserable failure of foreign funds like Morgan Stanley eroded the confidence of investors in fund managers. Investors perception about mutual funds, gradually turned negative. Mutual funds found it increasingly difficult to raise money. The average annual sales declined from about Rs 13,000 crore in 1991-94 to about Rs 9,000 crore in 1995 and 1996.
Phase IV: During this phase, the flow of funds into the kitty of mutual funds sharply increased. This significant growth was aided by a more positive sentiment in the capital market, significant tax benefits, and improvement in the quality of investor service. Investible funds, at market value, of the industry rose by June 2000 to over Rs 1,10,000 crore with UTI having 68% of the market share. During 1999-2000 sales mobilisation reached a record level of Rs 73,000 crore as against Rs 31,420 crore in the preceding year. This trend was, however,
sharply reversed in 2000-01. The UTI dropped a bombshell on the investing public by disclosing the NAV of US-64-its flagship scheme as on December 28,2000, just at Rs 5.81 as
against the face value of Rs 10 and the last sale price of Rs 14.50. The disclosure of NAV of the country's largest mutual fund scheme was the biggest shock of the year to investors.
Crumbling global equity markets, a sluggish economy coupled with bad investment decisions made life tough for big funds across the world in 2001-02. The effect of these problems was
felt strongly in India also. Pioneer m, JP Morgan and Newton Investment Management pulled out from the Indian market. Bank of India MF liquidated all its schemes in 2002.

The Indian mutual fund industry has stagnated at around Rs 1,00,000 crore assets since 2000-01. This stagnation is partly a result of stagnated equity markets and the indifferent performance by players. As against this, the aggregate deposits of Scheduled Commercial Banks (SCBs) as on May 3, 2002, stood at Rs 11,86,468 crore. Mutual funds assets under management (AUM) form just around 10% of deposits of SCBs.

The Unit Trust of India is losing out to other private sector players. While there has been an increase in AUM by around 11% during the year 2002, UTI on the contrary has lost more than 11% in AUM. The private sector mutual funds have benefited the most from the debacle ofUS-64 of UTI. The AUM of this sector grew by around- 60% for the year ending March 2002.


Types of Mutual Fund Schemes
The objectives of mutual funds are to provide continuous liquidity and higher yields with high degree of safety to investors. Based on these objectives, different types of mutual fund schemes have evolved.
Types of Mutual Fund Schemes
Functional :-
Open-Ended Event
Close-Ended Scheme
Interval Scheme
Portfolio :-
Income Funds
Growth Funds
Balanced Funds
Money Market
Mutual Fund
Geographical :-
Domestic
Off-Shore
Other :-
Sectoral Specific
Tax Saving
ELSS
Special
Gilt Funds
Load Funds
Index Funds
ETFs
PIE Ratio Fund


Functional Classification of Mutual Funds :-
1. Open-ended schemes: In case of open-ended schemes, the mutual fund continuously offers to sell and repurchase its units at net asset value (NAV) or NAV-related prices. Unlike close-ended schemes, open-ended ones do not have to be listed on the stock exchange and can also offer repurchase soon after allotment. Investors can enter and exit the scheme any time during the life of the fund. Open-ended schemes do not have a fixed corpus. The corpus of fund increases or decreases, depending on the purchase or redemption of units by investors.
There is no fixed redemption period in open-ended schemes, which can be terminated whenever the need arises. The fund offers a redemption price at which the holder can sell units to the fund and exit. Besides, an investor can enter the fund again by buying units from the fund at its offer price. Such funds announce sale and repurchase prices from time-to-time. UTI's US-64 scheme is an example of such a fund. The key feature of open-ended funds is liquidity. They increase liquidity of the investors as the units can be continuously bought and sold. The investors can develop their income or saving plan due to free entry and exit frame of funds. Open-ended schemes usually come as a family of schemes which enable the investors to switch over from one scheme to another of same family.
2. Close-ended schemes: Close-ended schemes have a fixed corpus and a stipulated maturity period ranging between 2 to 5 years. Investors can invest in the scheme when it is launched. The scheme remains open for a period not exceeding 45 days. Investors in close-ended schemes can buy units only from the market, once initial subscriptions are over and thereafter the units are listed on the stock exchanges where they dm be bought and sold. The fund has no interaction with investors till redemption except for paying dividend/bonus. In order to provide an alternate exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. If an investor sells units directly to the fund, he cannot enter the fund again, as units bought back by the fund cannot be reissued. The close-ended scheme can be converted into an open-ended one. The units can be rolled over by the passing of a resolution by a majority of the
3. Interval scheme: Interval scheme combines the features of open-ended and close-ended schemes. They are open for sale or redemption during predetermined intervals at NAVrelated
prices.

Portfolio Classification :-
Here, classification is on the basis of nature and types of securities and objective of investment.
1. Income funds: The aim of income funds is to provide safety of investments and regular income to investors. Such schemes invest predominantly in income-bearing instruments like bonds, debentures, government securities, and commercial paper. The return as well as the risk are lower in income funds as compared to growth funds.
2. Growth funds: The main objective of growth funds is capital appreciation over the medium-to-long- term. They invest most of the corpus in equity shares with significant growth potential and they offer higher return to investors in the long-term. They assume the risks associated with equity investments. There is no guarantee or assurance of returns. These schemes are usually close-ended and listed on stock exchanges.
3. Balanced funds: The aim of balanced scheme is to provide both capital appreciation and regular income. They divide their investment between equity shares and fixed nicebearing
instruments in such a proportion that, the portfolio is balanced. The portfolio of such funds usually comprises of companies with good profit and dividend track records. Their exposure to risk is moderate and they offer a reasonable rate of return.
4. Money market mutual funds: They specialise in investing in short-term money market instruments like treasury bills, and certificate of deposits. The objective of such funds is high liquidity with low rate of return.
Geographical Classification :-
1. Domestic funds: Funds which mobilise resources from a particular geographical locality like a country or region are domestic funds. The market is limited and confined to the boundaries of a nation in which the fund operates. They can invest only in the securities which are issued and traded in the domestic financial markets.
2. Offshore funds: Offshore funds attract foreign capital for investment in 'the country of the issuing company. They facilitate cross-border fund flow which leads to an increase in foreign currency and foreign exchange reserves. Such mutual funds can invest in securities of foreign companies. They open domestic capital market to international investors. Many mutual funds in India have launched a number of offshore funds, either independently or jointly with foreign investment management companies. The first offshore fund, the India Fund, was launched by Unit Trust of India in July 1986 in collaboration with the US fund manager, Merril Lynch.
Others :-
1. Sectoral: These funds invest in specific core sectors like energy, telecommunications, IT, construction, transportation, and financial services. Some of these newly opened-up sectors offer good investment potential.
2. Tax saving schemes: Tax-saving schemes are designed on the basis of tax policy with special tax incentives to investors. Mutual funds have introduced a number of tax saving
schemes. These are close--ended schemes and investments are made for ten years, although investors can avail of encashment facilities after 3 years. These schemes Contain various options like income, growth or capital application. The latest scheme offered is the Systematic Withdrawal Plan (SWP) which enables investors to reduce their tax incidence on dividends from as high as 30% to as low as 3 to 4%.
3. Equity-linked savings scheme (ELSS): In order to encourage investors to invest in equity market, the government has given tax-concessions through special schemes. Investment in these schemes entitles the investor to claim an income tax rebate, but these schemes carry a
lock-in period before the end of which funds cannot be withdrawn.
4. Special schemes: Mutual funds have launched special schemes to cater to the special needs of investors. UTI has launched special schemes such as Children's Gift Growth Fund, 1986, Housing Unit Scheme, 1992, and Venture Capital Funds.
5. Gilt funds: Mutual funds which deal exclusively in gilts are called gilt funds. With a view to creating a wider investor base for government securities, the Reserve Bank of India encouraged setting up of gilt funds. These funds are provided liquidity support by the Reserve Bank.
6. Load funds: Mutual funds incur certain expenses such as brokerage, marketing expenses, and communication expenses. These expenses are known as 'load' and are recovered by the fund when it sells the units to investors or repurchases the units from withholders. In other words, load is a sales charge, or commission, assessed by certain mutual funds to cover their selling costs.
Loads can be of two types-
1) Front-end-load and
2) back-end load.
Front-end-load, or sale load, is a charge collected at the time when an investor enters into the scheme. Back-end, or repurchase, load is a charge collected when the investor gets out of the scheme. Schemes that do not charge a load are called 'No load' schemes. In other words, if the asset management company (AMC) bears the load during the initial launch of the scheme, then these schemes are known as no-load schemes. However, these no-load schemes can have an exit load when the unit holder gets out of the scheme before a I stipulated period mentioned in the initial offer. This is done to prevent short-term investments and redemptions. Some funds may also charge different amount of loads to investors depending upon the time period the investor has stayed with the funds. The longer the investor stays with the fund, less is the amount of exit load charged. This is known as contingent deferred sales' charge (CDSL). It is a back-end (exit load) fee imposed by certain funds on shares redeemed with a specific period following their purchase and is usually assessed on a sliding scale.
7. Index funds: An index fund is a mutual fund which invests in securities in the index on which it is based BSE Sensex or S&P CNX Nifty. It invests only in those shares which
comprise the market index and in exactly the same proportion as the companies/weight age in the index so that the value of such index funds varies with the market index. An index fund follows a passive investment strategy as no effort is made by the fund manager to identify stocks for investment/dis-investment. The fund manager has to merely track the index on which it is based. His portfolio will need an adjustment in case there is a revision in the
underlying index. In other words, the fund manager has to buy stocks which are added to the index and sell stocks which are deleted from the index.
Internationally, index funds are very popular. Around onethird of professionally run portfolios in the US are index funds. Empirical evidence points out that active fund managers have not been able to perform well. Only 20-25% of actively managed equity mutual funds out-perform benchmark indices in the long-term. These active fund managers park 80% of their money in an index and do active management on the remaining 20%. Moreover, risk investors like provident funds and pension funds prefer investment in passively managed funds like index funds.
8. PIE ratio fund: PIE ratio fund is another mutual fund variant that is offered by Pioneer IT! Mutual Fund. The PIE (Price-Earnings) ratio is the ratio of the price of the stock of a company to its earnings per share (EPS). The PIE ratio of the index is the weighted average price-earnings ratio of all its constituent stocks.
The PIE ratio fund invests in equities and debt instruments wherein the proportion of the investment is determined by the ongoing price-earnings multiple of the market. Broadly, around 90% of the investible funds will be invested in equity if the Nifty Index PIE ratio is 12 or below. If this ratio exceeds 28, the investment will be in debt/money markets. Between the two ends of 12 and 28 PIE ratio of the Nifty, the fund will allocate varying proportions of its
investible funds to equity and debt. The objective of this scheme is to provide superior risk-adjusted returns through a balanced portfolio of equity and debt instruments.
9. Exchange traded funds: Exchange Traded Funds (ETFs) are a hybrid of open-ended mutual funds and listed individual stocks. They are listed on stock exchanges and trade like individual stocks on the stock exchange. However, trading at the stock exchanges does not affect their portfolio. ETFs do not sell their shares directly to investors for cash. The shares are offered to investors over the stock exchange. ETFs are basically passively managed funds that track a particular index such as S&P CNX Nifty.
Since they are listed on stock exchanges, it is possible to buy and sell them throughout the day and their price is determined by the demand-supply forces in the market. In practice, they trade in a small range around the value of the assets (NAV) held by them.
ETFs offer several distinct advantages:
ETFs bring the trading and real time pricing advantages of individual stocks to mutual funds. The ability to trade intraday at prices that are usually close to the actual intra-day NAV of the scheme makes it almost real-time trading.
ETFs are simpler to understand and hence they can attract small investors who are deterred to trade in index futures due to requirement of minimum contract size. Small investors can buy minimum one unit of ETF, can place limit orders and trade intra-day. This, in turn, would increase liquidity of the cash market.
ETFs can be used to arbitrate effectively between index futures and spot index.
ETFs provide the benefits of diversified index funds. The investor can benefit from the flexibility of stocks as well as the diversification.
ETFs being passively managed, have somewhat higher NAV against an index fund of the same portfolio. The operating expenses of ETFs are lower than even those of similar index funds as they do not have to service investors who deal in shares through stock exchanges.
ETFs can be beneficial for financial institutions also. Financial institutions can use ETFs for utilizing idle cash, managing redemptions, modifying sector allocations, and hedging market exposure.

The first exchange traded fund-Standard and Poor's Depository Receipt (SPDR-also called Spider)-was launched in the US in 1993. ETFs have grown rapidly with around US$100 billion in assets as on December 2001. Today, about 60% of trading value on the American Stock Exchange (AMEX) is from ETFs. ETFs were launched in Europe and Asia in 2001. Currently, more than 120 ETFs are available in US, Europe, Singapore, Hongkong, Japan, and other countries. Among the popular ones are SPDRs (Spiders) based on the S&P 500 Index, QQQs (cubes) based on the Nasdaq-100 Index, i SHARES based on MSCI Indices and TRAHK (Tracks) based on the Hang Seng Index. The ETF structure has seen over $120 bn pouring into it in more than 220 funds. It has become the fastest growing fund structure. In year 2001 alone, the number of funds doubled from 100 to 200.

The first ETF to be introduced in India is Nifty Bench mark Exchange-Traded Scheme (Nifty BeES). It is an open-ended ETF, launched towards the end of 2001 by Benchmark Mutual
Funds. The fund is listed in the capital market segment of the NSE and trades the S&P CNX Nifty Index. The Benchmark Asset Management Company has become the first company in
Asia (excluding Japan) to introduce ETF.

Net Asset Value: The net asset value of a fund is the market value of the assets minus the liabilities on the day of valuation. In other words, it is the amount which the shareholders will collectively get if the fund is dissolved or liquidated. The net asset value of a unit is the net asset value of fund divided by the number of outstanding units. Thus NAV = Market Price of Securities + Other Assets – Total Liabilities + Units Outstanding as at the NAV date. NAV = Net Assets of the Scheme + Number of units outstanding, that is, Market value of investments + Receivables + Other Accrued Income + Other Assets - Accrued Expenses - Other Payables - Other Liabilities + No. of units outstanding as at the NAV date.

A fund's NAV is affected by four sets of factors: purchase and sale of investment securities, valuation of all investment securities held, other assets and liabilities, and units sold or
redeemed.

SEBI has issued guidelines on valuation of traded securities, thinly traded securities and non-traded securities. These guidelines were issued to streamline the procedure of calculation
of NAV of the schemes of mutual funds. The aggregate value of illiquid securities as defined in the guidelines shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be valued in the manner as specified in the guidelines issued by the SEBI. Where income receivables on investments has accrued but has not been received for the period specified in the guidelines issued by SEBI, provision shall be made by debiting to the revenue account the income so accrued in the manner specified
By guidelines issued by SEBI.

Mutual funds are required to declare their NAV s and seller purchase prices of all schemes updated daily on regular basis on the AMFI website by 8.00 p.m. and declare NA V s of their
Close-ended schemes on every Wednesday.

According to SEBI (Mutual Funds) (Second Amendment) Regulations, 2000, a mutual fund can now invest up to 5% of its NAV in the unlisted equity shares or equity related instruments in case of open-ended schemes; while in case of close-ended schemes, the mutual fund can now invest up to 10% of its NAY.


Mutual Fund Investors
Mutual funds in India are open to investment by
Residents including:-
Resident Indian Individuals, including high net worthindividuals and the retail or small investors. Indian Companies
Indian Trusts/Charitable Institutions
Banks
Non-Banking Finance Companies
Insurance Companies
Provident Funds
Non-Residents, including
Non-Resident Indians
Other Corporate Bodies (OCBs)
c. Foreign entities, namely, Foreign Institutional Investors (FIIs) registered with SEBI. Foreign citizens/ entities are however not allowed to invest in mutual funds in India.

Market survey plays a vital role in understanding the investment pattern of the customer and the level of satisfaction. It is very important for the company to perform such activities like market research and surveys at regular intervals and accordingly further plans and policies can be formulated. By studying the investment pattern of the customers, the company can plan the strategies to capture the more market share by providing the better services and customized plans.


CHAPTER – 3 COMPANY PROFILE

Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settlers/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 in diversified securities.
Reliance Mutual Fund was approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RMF dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this IMA, RMF is authorised to act as Investment Manager of Reliance Mutual Fund. The networth of the Asset Management Company including preference shares as on March 31, 2005 is Rs.30.13 crores. 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 vide 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 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.


TRUSTEES: Trustees are like internal regulators in a mutual fund, and their job is to protect the interest of unitholders. Sponsors appoint trustees. Trustees appoint the AMC, which, subsequently seek their approval for the work it does, and reports periodically to them on how the business is being run. Trustees float and market schemes, and secure necessary approvals. They check if the AMC's investments are within defined limits and whether the fund's assets are protected. Trustees can be held accountable for financial irregularities in the mutual fund.
CUSTODIAN: A custodian handles the investment back office of a mutual fund. Its responsibilities include receipt and delivery of securities, collection of income, distribution of dividends, and segregation of assets between schemes. The sponsor of a mutual fund mutual fund cannot act as a custodian to the fund. This condition, formulated in the interest of investors, ensures that the assets of mutual fund are not in the hands of its sponsor.
REGISTRAR : Registrars, also known as transfer agents, handle all investor-related services. This includes issuing and redeeming units, sending fact sheet and annual reports. Some fund houses handle such functions in-house.

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
To take such steps as may be necessary from time to time to realize the effects without any limitation


Vision, Mission & Market Strategy:-
Vision statement –
"Empowering everyone to live their dream"

Mission statement-
"To offer unparalleled value by providing the customer transparent, convenient and effective anytime-anywhere integrated financial transaction capability"

Marketing strategy- to provide
Simple, easy-to-understand, safe and secure trading platform/software
Uncomplicated, easy-to-understand brokerage/trading cost structure without any riders
Easy access to the financial market through convenient modes of distribution
Sound, genuine, unbiased advise individual investments.

Detail Study about the company
The easiest, fastest and most convenient way to carry out your financial transactions is now at your fingertips! Reliance Money offers you the widest range of asset classes to trade in: Equity, Derivatives, Commodities and Forex. Also invest on-line in Mutual Funds, IPOs and Insurance products (Life & General). All this through one single window. Reliance Money is a state-of-the-art financial transaction platform, which enables you to conduct your financial transactions in cost effective, convenient and secure manner. Reliance Money has introduced several never . before features and thereby changed the way you will invest:
1. Flat Fees instead of Brokerage - Put your money into investments, not into brokerage. Pay a flat fee of Rs. 500/- and transact as much you want upto Rs. 1crore or for 2 months (whichever is earlier). It.s never happened before anywhere in the world!
2. Trading Kiosks - No matter if you don.t have access to a computer or the Internet. You will find exclusive Reliance Money Trading Kiosks at convenient locations throughout your city. These internet-enabled Kiosks bring the market to you, wherever you are.
3. Security Token - The Reliance Money security token is so hi-tech, it almost defies belief. This small, portable plastic device flashes a unique number that changes every 36 seconds, ensuring that the number used for an earlier transaction is discarded. This number works over and above your normal login and password, serving as a third level of protection that guarantees your account total safety.
4. Call N Trade - You don.t have to access your computer to trade or invest.With our Call N Trade facility, you can place orders over the phone.
5. Multiple Offerings - Along with equity, you can also trade / invest in Commodities (gold, silver, base metals and other agri commodities to name a few), Derivatives, Forex (RBI allows you to remit US$25,000 per calendar year), Mutual Funds, IPOs and Insurance products (Life & General).
6. Widest Network: Reliance Money has a network of branches all over the country with associates who will assist you with your financial investment requirements.
7. Other value - added Services: -Reliance Money provides:
Research, market views and stock views from independent experts, with an enviable
track record
LIVE news from Dow Jones, Capital Market and Commodities Control
CEOs. / experts. views on economy and the financial market
Personal Finance planning tools that help you plan your investments, retirement, tax etc.
Portfolio Tracker that will help you track your investments from one single
screen
Risk Analyzer to analyze your risk profile and get a suitable investment portfolio plan
using our Asset Allocator.
Knowledge Centre will help you understand investing and trading basics and also delve
into advanced concepts like trading strategies
Market Watch, a unique tool that will help you track your favorite companies. Just
configure it and get real time quotes, news, views, result etc. Our technology allows you to
detach it from the main screen and place it on your desktop.
Products and Services
A product for every need: Reliance Money is the most comprehensive platform which allows you to invest in Shares, Mutual Funds, Derivatives (Futures & Options), Commodities, Forex, IPOs, Insurance and other financial products. Simply put, we offer you a product for almost every investment need.
Investing in Mutual Funds:
Reliance Money brings you a unique, hassle-free and paperless way to invest in Mutual Funds. You can now invest on-line in Mutual Funds through Reliance Money No more filling application forms manually or any going through other paperwork. You need no signatures or proof of identity for investing. Once you place a request for investing in a particular fund, there are no manual processes involved. Your bank funds are automatically debited or credited while simultaneously crediting or debiting your unit holdings.You also get control over your investments with on-line order confirmations and order status tracking. You get to know the performance of your investments through online updation of your portfolio with current NAVs.
Reliance Money offers you various options while investing in Mutual Funds:
Purchase: Buying of Mutual Fund units is very convenient without the hassles of filling in the applications manually. Redemption: As with Purchases, redemptions too can be done online.
Switch: You can shift money from one scheme to another in the same mutual fund house, with the click of a button.





Reliance Mutual Funds
Equity Schemes :
Reliance Equity Fund:
(An open-ended diversified Equity Scheme.) 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.
Reliance Tax Saver (ELSS) Fund:
(An Open-ended Equity Linked Savings Scheme.) The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.
Reliance Equity Opportunities Fund:
(An Open-Ended Diversified Equity Scheme.) 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 securities &equity related securities and the secondary objective is to generate consistent returns by investing in debt and money market securities.
Reliance Vision Fund:
(An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to achieve long term growth of capital by investment in equity and equity related securities through a research based investment approach.
Reliance Growth Fund:
(An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to achieve long term growth of capital by investment in equity and equity related securities through a research based investment approach.
Reliance Index Fund:
(An Open Ended Index Linked Scheme.) The Investment Objective under the Nifty Plan is to replicate the composition of the Nifty, with a view to endeavor to generate returns, which could approximately be the same as that of Nifty. The Investment Objective under the Sensex plan is to replicate the composition of the Sensex, with a view to endeavor to generate returns, which could approximately be the same as that of Sensex.
Reliance NRI Equity Fund:
(An open-ended Diversified Equity Scheme.) The Primary investment objective of the scheme is to generate optimal returns by investing in equity or equity related instruments primarily drawn from the Companies in the BSE 200 Index.
Equity Option: The primary investment objective is to seek capital appreciation and or consistent returns by actively investing in equity / equity related securities.

Sector Specific Schemes
These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time.

Sector Specific Schemes
Sector Funds are specialty funds that invest in stocks falling into a certain sector of the economy. Here the portfolio is dispersed or spread across the stocks in that particular sector. This type of scheme is ideal for investors who have already made up their mind to confine risk and return to a particular sector
Reliance Banking Fund
Reliance Mutual Fund has an Open-Ended Banking Sector Scheme which has the primary investment objective to generate continuous returns by actively investing in equity / equity related or fixed income securities of banks.
Reliance Diversified Power Sector Fund
Reliance Diversified Power Sector Scheme is an Open-ended Power Sector Scheme. The primary investment objective of the Scheme is to seek to generate consistent returns by actively investing in equity / equity related or fixed income securities of Power and other associated companies.
Reliance Pharma Fund
Reliance Pharma Fund is an Open-ended Pharma Sector Scheme. The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of Pharma and other associated companies.
Reliance Media & Entertainment Fund
Reliance Media & Entertainment Fund is an Open-ended Media & Entertainment sector scheme.

The The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of media & entertainment and other associated companies.
NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices. NAV is calculated as follows:
NAV= Market value of the fund's investments+Receivables+Accrued Income.
Liabilities-Accrued Expenses.

Various Companies Detail:
FRANKLIN TEMPLETON MUTUAL FUND
The group, Franklin Templeton investment is a California based company with a
global AUM of US $409.2(as on 2005). It is one of the largest financial service group in
the world. Investors can buy or sell the Mutual Fund through their financial advisor or
through mail or through their website. They have open end Diversified Equity schemes,
Open end Sector Equity schemes, Open end Hybrid schemes, Open end tax saving
schemes, Open end income and liquid schemes, Closed end Income schemes and Open
end Fund of Funds schemes to offer.
HDFC MUTUAL FUND
HDFC Mutual Fund was setup on June 30, 2000 with two sponsors namely
Housing Development Finance Corporation Limited and Standard Life Investments
Limited.
ING VYSYA MUTUAL FUND
ING Yysya Mutual Fund was setup on February 11, 1999 with the same named Trustee
Company. It is a joint venture of Vysya and ING. The AMC, ING Investment
Management (India) Pvt. Ltd. was on corporaed on April 6, 1998.
PRUDENTIAL ICICI MUTUAL FUND
The mutual fund of ICICI is a joint venture with Prudential Plc. Of America, one
of the largest life insurance companies in the US of A. Prudential ICICI Mutual Fund was
setup on 13 October, 1993 with two sponsors, Prudential Plc. and the AMC is Prudential
ICICI Asset Management Company Limited incorporated on 22 June, 1993.
SAHARA MUTUAL FUND
Sahara Mutual Fund was setup on July 18, 1996 with Sahara India financial
Corporation Ltd. as the sponsor. Sahara Assets Management Company Private Limited
incorporated on August 31, 1995 works as the AMC of Sahara Mutual Fund. The paid up
capital of the AMC stands at Rs.25.8 crore.
STATE BANK OF INDIA MUTUAL FUND
State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to
launch offshore fund, the India Magnum Fund with a corpus of Rs.225 crore
approximately. Today it is the largest Bank sponsored Mutual Fund in India. They
already launched 35 schemes out of which 15 have already yield handsome returns to
investors. State Bank of India Mutual Fund has more than Rs.5, 500 crores as AUM.
Now it has an investor base of over 8 lakhs spread over 18 schemes.
TATA MUTUAL FUND
TATA Mutual Fund is a Trust under the Indian Trust Act, 1882. the sponsors for
Tata Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. the
investment manager is Tata management Limited is one of the fastest in the country with
more than Rs.7,703 Crore (as on 2005) of AUM.
KOTAK MAHINDRA ASSTE MANAGEMENT COMPANY
Kotak Mahindra Asset Management Company is a subsidiary of KMBL. It is
presently having more than 1, 99,818 investors in its various schemes. KMAMC stared
its operations in December 1998. Kotak Mahindra Mutual Fund offers schemes catering
to investors with varying risk return profiles. It was the first company to launch to
dedicated gilt scheme investing only in government securities.
UNIT TRUST OF INDIA MUTUAL FUND
UTI Asset Management Company Private Limited, established in Jan 24, 2003
manages the UTI Mutual Fund with the support of UTI Trustee Company Private
Limited. UTI Asset Management Company presently manages a corpus of over Rs.20,
000 crore. The sponsors of UTI Mutual Fund are Bank of Baroda, Punjab National Bank,
State Bank of India, and Life Insurance Corporation of India. The schemes of UTI
Mutual Fund are Liquid Funds, assets Management Funds, Index Funds and Balanced
Funds.
ABN AMRO MUTUAL FUND
ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO
Trustee (India) Pvt. Ltd. as the Trustee Company. The AMC, ABN AMRO Asset
Management (India) Ltd. was incorporated on November 4, 2003. Deutsche Bank A G is
the custodian of ABN AMRO Mutual Fund.
BIRLA SUN LIFE MUTUAL FUND
Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun
Life Financial. Sun Life Financial is a global organization evolved in 1871 and is being
represented in Canada, the US, the Philippines, Japan, Indonesia and Bermuda apart from
India. Birla Sun life Mutual Fund follows a conservative long-term approach to
investment. Recently it crossed an AUM of Rs.10, 000 crores.
BANK OF BARODA MUTUAL FUND
Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30,
1992 under the sponsorship of Bank of Baroda. BOB Assets Management Company
Limited is the AUM of BOB Mutual Fund and was incorporated on November 5, 1992.
Deutsche Bank AG is the custodian. STANDARD CHARTERED MUTUAL FUND
Standard Chartered Mutual Fund was setup on March 13, 2000 sponsored by
Standard Chartered Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd.
Standard Chartered Asset Management Company Pvt. Ltd is the AMC which was
incorporated with SEBI on December 20, 1999.
MORGAN STANLEY MUTUAL FUND
Morgan Stanley is a worldwide financial services company and its leading in the
market in securities, investment management and credit services. Morgan Stanley
Investment management was established in the year 1975. It provides customized asset
Management services and products to governments, corporations, pension funds and non
Profit organizations. Its services are also extending to high net worth individuals and
Retail investors. In India it is known as Morgan Stanley investment management Private
Ltd. and its AMC is Morgan Stanley Mutual Fund. This is the first closed end diversified
equity scheme serving the needs of Indian retail investors focusing on the long term
capital appreciation.
ESCORT MUTUAL FUNDS
Escort Mutual Funds was set up on April 15th, 1996 with Escorts Finance Ltd. as its
sponsor. The Trustee Company is Escorts Investments Trust Ltd. its AMC was
Incorporated on Dec1st, 95 with the name Escorts Asset Management Ltd.
ALLAINCE CAPITAL MUTUAL FUND
Allaince Capital Mutual Fund was set up on December 30, 1994 with Alliance
Capital Management Corp. of Delaware (USA) as sponsor. The Trustee is ACAM Trust
Company Pvt. Ltd. and AMC, the Alliance Capital Asset Management India Pvt. Ltd.
with the corporate office in Mumbai.
BENCHMARK MUTUAL FUND
Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial
Services Pvt. Ltd. as the sponsor and Benchmark Trustee Company Pvt. Ltd. as the
Trustee Company. Incorporated on October 16, 2000 and headquartered in Mumbai,
Benchmark Assets Management Company Pvt. Ltd. is the AMC.
CAN BANK MUTUAL FUND
Can Bank Mutual Fund was setup on December 19, 1987 with Canara Bank
Acting as the sponsor. Canara bank investment Management Service Ltd. incorporated on
March 2, 1993 is the AMC. The Corporate Office of the AMC is in Mumbai.
CHOLA MUTUAL FUND
Chola Mutual Fund under the sponsorship of Cholamandalam Investment &
Finance Company Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is
The Trustee Company and AMC is Cholamandalam AMC Limited.
LIC MUTUAL FUND
Life Insurance Corporation on India setup LIC Mutual Fund on 19th June 1989. It
Contributed Rs.2 crore towards the corpus of the Fund. LIC Mutual Fund was constituted
As a trust in accordance with the provisions of the Indian trust Act, 1882. The Company
Started its business on 29th April 1994. The Trustees of LIC Mutual Fund have appointed
Jeevan Bima Sahayog Asset Management Company Ltd. as the Investment Managers for
Mutual fund.
GIC MUTUAL FUND
GIC Mutual Fund, sponsored by General Insurance Corporation of India, a
Government of India undertaking and the four Public Sector General Insurance
Companies, viz. National Insurance Co. Ltd, the New India Assurance Co. Ltd. the
Oriental Insurance Co. Ltd and United India Insurance Co. Ltd and is constituted as a
Trust in Accordance with the provisions of the Indian Trusts Act, 1882.
CHAPTER – 4 INTRODUCTION OF TOPIC

About Mutual Funds
Mutual Funds operate as collective investment vehicles (CIV) that pools resources by issuing units to investors and collectively invests those resources in a diversified portfolio comprising of stocks, bonds or money market instruments in accordance with the objectives mentioned in the offer document issued for the purpose of pooling resources. The investors share the profit or losses in proportion to their investments in the fund. The first ever Mutual Fund in India, the Unit trust of India was set up in 1964. This was followed by entry of MFs supported by public sector banks and insurance companies in 1987. The industry was opened for the private players in 1993 providing Indian investors with a broader choice. Starting with an asset base of Rs. 25 crore in 1964, the industry has grown exponentially.

The MF industry in India is governed by the SEBI, which lay norms for MF and its Asset Managing Companies (AMCs). A Mutual Fund is allowed to issue open-ended and closed-ended schemes under a common legal structure. Respective Asset Management Companies (AMC) manages mutual fund schemes. Different business groups/ financial institutions/ banks have sponsored these AMCs, either alone or in collaboration with reputed international firms. Several international funds like Alliance and Templeton are also operating independently in India. Many more international Mutual Fund giants are expected to come into Indian markets in the near future.

Market survey plays a vital role in understanding the investment pattern of the customer and the level of satisfaction. It is very important for the company to perform such activities like market research and surveys at regular intervals and accordingly further plans and policies can be formulated. By studying the investment pattern of the customers, the company can plan the strategies to capture the more market share by providing the better services and customized plans.
Mutual Funds are dynamic financial institutions, which play a crucial role in an economy mobilizing a link between savings and the capital market. Therefore the activities of Mutual Funds have both short and long term impact on the savings and capital markets and the national economy. Mutual Funds thus assist the process of financial deepening and intermediation. They mobilize Funds in the savings market and act as complementary to banking, at the same time they also compete with banks and other financial institutions. In the process stock market activities are also significantly influenced by Mutual Funds. The scope and efficiency of Mutual Funds are influenced by overall economic fundamentals, the interrelationship between the financial and real sector, the nature of development of the savings and capital markets, market structure, institutional arrangements and overall policy regime.








CHAPTER – 5
DATA ANALYSIS


The given below is the Primary Analysis
i.e. one variable analysis of the questionnaire.


You belong to which one of the following category:


Frequency
Percent
Valid Percent
Cumulative Percent


Valid
Govt. Employee
21
21.0
21.0
21.0

Profestional Pvt. Firm Employee
23
23.0
23.0
44.0

Self Employed
23
23.0
23.0
67.0

Business Person
7
7.0
7.0
74.0

Agriculturist
1
1.0
1.0
75.0

Others
25
25.0
25.0
100.0

Total
100
100.0
100.0




Interpretation:
Out of the 21 People Govt. Employee, 23 People Professional Pvt. Firm Employee, 23 People Self Employed, 7 People Business Person, 1 Person Agriculturist, 25 People Others.

Your annual income is in the range of:


Frequency
Percent
Valid Percent
Cumulative Percent



Valid


Below Rs. 1 Lakh
12
12.0
12.0
12.0

Between 1 Lakh to 2 Lakh
23
23.0
23.0
35.0

Between 2 Lakh to 3 Lakh
22
22.0
22.0
57.0

Between 3 Lakh to 4 Lakh
15
15.0
15.0
72.0

Between 4 Lakh to 5 Lakh
12
12.0
12.0
84.0

Above Rs. 5 Lakh
16
16.0
16.0
100.0

Total
100
100.0
100.0



Interpretation:
Out of the 12 People income Below Rs. 1 Lakh, 23 people income Between 1 Lakh to 2 Lakh, 22 People Between 2 Lakh to3 Lakh, 15 people Between 3 Lakh to 4 Lakh, 12 people Between 4 Lakh to 5 Lakh, 16 people Above Rs. 5 Lakh.

Where do you invest your savings?


Frequency
Percent
Valid Percent
Cumulative Percent




Valid
Savings Bank
77
77.0
27.5
27.5

Fixed Deposit
51
51.0
18.21
45.71

Shares/Debentures
7
7.0
2.5
2.5

Gold/Silver
25
25.0
8.93
57.14

Postal savings
33
33.0
11.78
68.92

Real Estate
13
13.0
4.64
73.56

Mutual Funds
12
12.0
4.30
77.86

Insurance
62
62.0
22.14
100.0

Total
280
280.0
100.0

Interpretation:
Out of the 77 People savings in bank, 51 people saving in Fixed Deposit, 7 people saving in Shares / Debentures, 25 people saving in Gold / Silver, 33 people saving in Postal Savings, 13 people saving in Real Estate, 12 people saving in Mutual Fund, 62 People saving in Insurance.
What is the percentage of savings from your total income?


Frequency
Percent
Valid Percent
Cumulative Percent


Valid
<=25%
88
88.0
88.0
88.0

<=50%
10
10.0
10.0
98.0

<=75%
2
2.0
2.0
100.0


100
100.0
100.0



Interpretation:
88% people in ranked 1st < 25% are savings in total income, 10% people in ranked 2nd
< 50% are savings in total income, 2% people in ranked 3rd < 75% savings in total income.

Are you an investor in Mutual Funds? (If No, then directly go to question No.18)


Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Yes
17
17.0
17.0
17.0

No
83
83.0
83.0
100.0

Total
100
100.0
100.0



Interpretation:
17% of the respondents prefer investors invest in Mutual Fund, whereas 83% of the respondents prefer other investing source.

6. If yes, then you have invested in the Mutual Fund Which Company?
Please Mention________________________
Scheme ________________________

7. Which Schemes of Mutual fund would you prefer the most?


Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Equity Schemes
14
14.0
82.35
82.35

Debt Schemes
3
3.0
17.65
100.0

Total
17
17.0
100.0



Interpretation:
82.35% of the respondents prefer equity schemes as investors now days are ready to risk because they are getting good returns, whereas 17.65% of the respondents prefer debt schemes.

8. If Equity Funds then, in which category:


Frequency
Percent
Valid Percent
Cumulative Percent


Valid
Diversified Equity Funds
7
7.0
25.0
25.0

Mid-Cap Funds Sector
6
6.0
21.43
46.43

Specific Funds
4
4.0
14.29
60.72

Tax Savings Funds
11
11.0
39.28
100.0

Total
28
28.0
100.0



Interpretation:
Tax saving fund is ranked 1st by 39.20% of the Investors investing in saving fund as the returns are low and also riskier compared to other 3 schemes. Diversified equity fund is ranked 2nd by majority of the Investors as the returns are not so high compared to the other Schemes of Equity.
Do you have knowledge about the share market & its functioning?


Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Yes
13
13.0
76.47
76.47

No
4
4.0
23.53
100.0

Total
17
17.0
100.0



Interpretation:
76.47% of the respondents have knowledge about share market and its functioning, whereas 23.53% of the respondents have no knowledge.

Are you aware of the fact that Mutual Fund Companies will invest your money in
Share Market?


Frequency
Percent
Valid Percent
Cumulative Percent

Valid
Yes
14
14.0
82.35
82.35

No
3
3.0
17.65
100.0

Total
17
17.0
100.0




Interpretation:
82.35% of the respondents have aware about companies invest in share market, whereas 17.65% of the respondents have no about the companies strategy.

11. What factors do you consider while investing in mutual fund?


Frequency
Percent
Valid Percent
Cumulative Percent



Valid
Safety
11
11.0
22.45
22.45

Rate of return
7
7.0
14.29
36.74

Liquidity
4
4.0
8.16
44.9

Tax benefit
13
13.0
26.53
71.43

Flexibility
5
5.0
10.20
81.63

Brand Name
9
9.0
18.37
100.0

Total
49
49.0





Interpretation:
Out of the 11 respondents 22.45 % of them have rated to safety because every investors needs safety in his investment made but also some of them have given least preference to safety because as we know "higher the risk higher the return". 26.53 % of the respondents have ranked 1st for tax benefit which shows people give importance for tax benefit as it saves the investors money. 18.37% of the respondents have ranked 3rd to Brand which shows importance is given to brand name of the company in which investors are investing as it is shows the credit worthiness of the company.
14.29% of the respondent's people are ready to take risk but they expect good returns and higher return each time. 10.20% of the respondents have ranked 5th to Flexibility, which shows liquidity is given least preference. Out of the 4 respondents 8% of them have ranked liquidity as 6th which shows not much importance is given to flexibility as far as investors are getting good return from the schemes.



12. What advantages do you find when you invest in Mutual Funds?


Frequency
Percent
Valid Percent
Cumulative Percent




Valid
Professional Management
7
7.0
9.86
9.86

Diversification
4
4.0
5.63
15.49

Return Potential
13
13.0
18.31
33.8

Low Cost
7
7.0
9.86
43.66

Liquidity
7
7.0
9.86
53.52

Transparency
11
11.0
15.49
69.01

Flexibility
7
7.0
9.86
78.87

Choice of Schemes
5
5.0
7.04
85.91

Tax Benefit
10
10.0
14.09
100.0

Total
71
71.0
100.0



Interpretation:
Out of the 13 respondents ranked 1st 18.31 % of them have rated Return potential to because every investor needs Return in his investment.11 respondents ranked 2nd 15.49% them have transparency, 10 respondent ranked 3rd tax benefit 14.09.
7 respondents ranked 4th Professional Management, Low cost, Liquidity, Flexibility in 9.86% respectively. 5 respondents ranked 5th Choice of Schemes 7.04%, 4 respondents ranked 6th Diversification 5.63%.

13. What do you look before investing in a particular mutual fund scheme?


Frequency
Percent
Valid Percent
Cumulative Percent


Valid
Past Performance (NAV)
7
7.0
21.21
21.21

Ratings (by CRISIL, ICRA, Etc.)
15
15.0
45.45
66.66

Asset Management Companies (AMC)
5
5.0
15.15
81.81

Expert Advise
6
6.0
18.19
100.0

Total
33
33.0
100.0



Interpretation:
Out of the 15 respondents ranked 1st 45.45 % of them have rated Ratings (by CRISIL, ICRA, Etc) to because every investor look before invest in Mutual Fund, 7 respondents ranked 2nd 21.21% Past Performance (NAV), 6 respondents ranked 3rd Expert Advice 18.19%, 5 respondents 15.15% Asset Management Companies (AMC).

14. Where do you gather information about the performance of different mutual fund schemes?


Frequency
Percent
Valid Percent
Cumulative Percent



Valid
Financial Institutions
5
5.0
11.11
11.11

Brokers
4
4.0
8.88
19,99

Financial Consultants
3
3.0
6.66
26.65

TV Channels
6
6.0
13.33
39.98

Magazines
7
7.0
15.55
55.53

Internet
11
11.0
24.47
80.0

News Paper
9
9.0
20
100.0

Total
45
45.0








Interpretation:
For the popularity of the mutual funds all the means contributed all most equally but the dominated factor in these factors is advice from the Internet, which contributed around 24.47% followed by the News Paper at 20%.

15. Since how many years you are investing in Mutual Fund Schemes


Frequency
Percent
Valid Percent
Cumulative Percent



Valid
One Year
3
3.0
17.65
17.65

Two Year
4
4.0
23.53
41.18

Three Year
2
2.0
11.76
52.94

Four Year
0
0.0
0.0
0.0

Five Year
0
0.0
0.0
0.0

More than Five Years
8
8.0
47.06
100.0

Total
17
17.0




Interpretation:
Out of the 3 Person Investing in one year Scheme, 4 person invest two year scheme, 2 person invest in three year scheme, 8 person invest in More than five year scheme.

16. You invest in Mutual Fund Schemes because:


Frequency
Percent
Valid Percent
Cumulative Percent


Valid
It is a good investment instrument
13
13.0
40.63
40.63

It's better to invest in Mutual funds rather than investing directly in shares
8
8.0
25.0
65.63

They give assured and consistent return
4
4.0
12.5
78.13

They provide high return with low risk
7
7.0
21.87
100.0

Total
32
32.0







Interpretation:
Out of the 13 Person Investing in Mutual Fund Because It is a good investment instrument, 8 person investing in mutual fund It's better to invest in mutual fund rather than investing directly in shares, 4 person investing in mutual fund They give assured and consistent return, 7 person investing in mutual fund They provide high return with low risk.

17. How would you rate Reliance mutual fund when compared to the other mutual
Fund? (Rank them from 1 to 5, 1 being the Highest & 5 being the lowest).

Reliance [ ]
HDFC [ ]
Franklin Templeton [ ]
UTI [ ]
Pru ICICI [ ]

18. You have not invested in mutual funds because:


Frequency
Percent
Valid Percent
Cumulative Percent




Valid
No satisfactory return on investment when compared to other investment Instruments
24
24.0
16.44
16.44

No safety for funds invested
22
22.0
15.07
31.51

Risky investment instrument
14
14.0
9.59
41.1

No / Less Liquidity
7
7.0
4.79
45.89

No knowledge about how to invest
51
51.0
34.93
80.82

No knowledge about where to invest / investment centers
17
17.0
11.64
92.46

No Mutual Fund investors' education & service center in Ahmedabad
11
11.0
7.54
100.0

Total
146
146.0
100.0



Interpretation:
Out of the 24 respondents believe No satisfactory return on investment when compared to other investment Instruments, 22 respondents believe No safety for funds invested, 14 respondents Risky Investment Instrument, 7respondents believe No / Less Liquidity, 51 respondents believe No knowledge about how to invest, 17 respondents believe No knowledge about where to invest / investment centres, 11 respondents believe No Mutual Fund investors' education & service centre in Ahmedabad.







CHAPTER – 6
FINDINGS

25% of the Investors have come to know about Mutual fund through Internet followed by 20% who have come to know through News Paper.
82% of the Investors are giving more preference to Equity schemes as they are giving higher return whereas 18% of them prefer Debt Schemes because of the Safety they provide.
39% investing in Equity schemes Tax Saving Fund Category and 25% followed by Diversified Equity Fund.
53% of the investors prefer Reliance Growth Fund followed by Reliance Vision Fund and other Schemes.
76% of the investors give most importance to Tax Benefit as they expect 64% followed by Safety as it is also important aspect of investors.
47% invested in Mutual Fund Scheme More than Five Years and 23% Followed By two years.
Reliance Mutual Fund is Ranked 3rd by the Investors i.e. 53 % of them have ranked Reliance as 3rd , Pru. ICICI 2nd and Franklin Templeton is Ranked 1st.







CHAPTER – 7 SUGGESTIONS & CONCLUSION

SUGGESTIONS
Holding a seminar and presentations or Investors meet in the stock broking firm help the investors to remove any misconception regarding the Mutual Fund and this will create awareness of Mutual fund.
Agents are the main person who influences the investment decision. Company can hire fresh graduates train them and sponsor for the AMFI exam just like insurance companies who conduct IRDA training. This will increase the feet on street for the mutual fund companies.
Company has to provide timely services to its customers so that it can compete with its competitors like Franklin Templeton and HDFC.









CONCLUSION
I order to study the concept of mutual fund we should note that a mutual fund is a
Trust that pools the money of several investors and manages investments on behalf. The
Fund collects this money from investors through various schemes. Each schemes is
Differentiated by its objectives of investments or in other words a broadly defined
Purpose of how the collected money is going to be involved.

Investors invest in mutual fund due to following advantages: they have
Professional management, diversification, convenient administration, return potential,
Low cost, liquidity.

By comparing the above mentioned schemes I came to know the risk and return
Relation between the specified schemes. Therefore investors before investing in Equity
Mutual Fund schemes they should study the risk and return relation. And if the risk and
Returns is been matched with their planning, then only the investors should go for Equity Mutual Fund schemes.

After the analysis made on the performance of Equity Schemes of Mutual Fund I can conclude that Equity schemes are most preferred by Investors and overall Vision Fund and Growth scheme are doing extremely well in the market satisfying the customer wants of high returns and also through survey conducted it is clear that is performing quite well so it has been Reliance Mutual Fund ranked 3rd among the selected companies. From the study we also came to know that according to Investor Vision fund is ranked First but Company View (Profit) Reliance growth fund is ranked First.

CHAPTER – 8 BIBLIOGRAPHY


Retrieved july 20, 2014, from www.invetopidia.com.
(2014, july 7). Retrieved july 19, 2014, from www.reliancemf.com.
(2014, june 30). Retrieved july 16, 2014, from www.moneycontrol.com.
(2014, MARCH). Retrieved JUNE 27, 2014, from www.mutualfunds.com.
(2014, february). Retrieved july 5, 2014, from www.amfiindia.com.
(2014, MARCH 31). Retrieved JULY 11, 2014, from www.equitymaster.com.
Chartered Wealth Management (Vol. 3). (2014). Ahmedabad, Gujarat, India: AAFM.
Nikita. (2013). Analysis of Mutual Fund. Pune.
(2013). Reliance Fact Sheet. AHMEDABAD.
smart invest. (2013). Invest smart financial Journal .









CHAPTER – 9 ANNEXURE


QUESTIONNAIRE

Dear Sir/Madam:
I am student of GLSICT of Business Management, Ahmedabad, are conducting a survey on Comparative study in equity schemes of various companies Mutual fund. For this, I need your help and few precious minutes so that your responses can help us in our analysis. I assure you that the information taken from you will not be used otherwise and will be kept confidential.

Personal Details:

Name : _____________________________________________

Address : _____________________________________________

Occupation : _____________________________________________

Contact No : _____________________________________________


1. You belong to which one of the following category:
Govt. Employee [ ] Professional Pvt. Firm Employee [ ] Self Employed [ ]
Business Person [ ] Agriculturist [ ] Others [ ]
2. Your annual income is in the range of:
Below Rs. 1 Lakh [ ] Between 1 Lakh to 2 Lakh [ ]
Between 2 Lakh to 3 Lakh [ ] Between 3 Lakh to 4 Lakh [ ]
Between 4 Lakh to 5 Lakh [ ] Above Rs. 5 Lakh [ ]
3. Where do you invest your savings?
Savings Bank [ ] Fixed Deposit [ ] Shares/Debentures [ ] Gold/Silver [ ]
Postal savings [ ] Real Estate [ ] Mutual Funds [ ] Insurance [ ]
Others (Please Mention) [ ]
4. What is the percentage of savings from your total income?
[ ] <=25 % [ ] <= 50 % [ ] <= 75 % [ ] others ________
5. Are you an investor in Mutual Funds?
Yes [ ] No. [ ] (If No, then directly go to question No.18)
6. If yes, then you have invested in the Mutual Fund Which Company ?
Please Mention ________________________
Scheme ________________________
7. Which Schemes of Mutual fund would you prefer the most?
Equity Schemes [ ] Debt Scheme [ ]
8. If Equity Funds then, in which category
Diversified Equity Funds [ ] Mid-Cap Funds Sector [ ]
Specific Funds [ ] Tax Savings Funds [ ]
9. Do you have knowledge about the share market & its functioning?
Yes [ ] No [ ]
10. Are you aware of the fact that Mutual Fund Companies will invest your money in Share
Market
Yes [ ] No [ ]
11. What factors do you consider while investing in mutual fund?
Safety [ ] Rate of return [ ] Liquidity [ ]
Tax benefit [ ] Flexibility [ ] Brand Name [ ]
12. What advantages do you find when you invest in Mutual Funds?
Professional Management [ ] Diversification [ ] Return Potential [ ]
Low cost [ ] Liquidity [ ] Transparency [ ]
Flexibility [ ] Choice of schemes [ ] Tax benefits [ ]
13. What do you look before investing in a particular mutual fund scheme?
Past Performance (NAV) [ ] Ratings (by CRISIL, ICRA, Etc.) [ ]
Asset Management Companies (AMC) [ ] Expert Advise [ ]
14. Where do you gather information about the performance of different mutual fund schemes?
Financial Institutions [ ] Brokers [ ] Financial Consultants [ ] TV Channels [ ]
Magazines [ ] Internet [ ] News Paper [ ]
15. Since how many years you are investing in Mutual Fund Schemes
One year [ ] Two Years [ ] Three Years [ ] Four Years [ ] Five Years [ ]
More than five years [ ]
16. You invest in Mutual Fund Schemes because:
It is a good investment instrument [ ]
It's better to invest in Mutual funds rather than investing directly in shares [ ]
They give assured and consistent return [ ]
They provide high return with low risk. [ ]
17. How would you rate Reliance mutual fund when compared to the other mutual
Fund? (Rank them from 1 to 5, 1 being the Highest & 5 being the lowest).
Reliance [ ]
HDFC [ ]
Franklin Templeton [ ]
UTI [ ]
Pru ICICI [ ]
18. You have not invested in mutual funds because:
No satisfactory return on investment when compared to other investment
Instruments [ ]
No safety for funds invested [ ]
Risky investment instrument [ ]
No / Less Liquidity [ ]
No knowledge about how to invest [ ]
No knowledge about where to invest / investment centers [ ]
No Mutual Fund investors' education & service center in Ahmedabad [ ]

******************Thank You Very Much ***************

Table 5.14 Frequency Of how many years investing mutual fund scheme



Table 5.11 Frequency Of advantages to invest in Mutual Fund


Table 5.2 Frequency No. Of Income

Table 5.3 Frequency No. Of Savings


Table 5.4 Frequency % Of Total Income



Table 5.1 Frequency of No. Of Category


Table 5.5 Frequency of Investors in Mutual Fund



Table 5.9 Frequency Of aware companies invest in share market



Table 5.10 Frequency Of factors consider to invest in Mutual Fund


Table 5.8 Frequency Of Knowledge Share Market



Table 5.6 Frequency of most prefered
Mutual Fund schmes



Table 5.7 Frequency Of Equity funds Category