neha rai final project

8/8/2019 Neha Rai Final Project

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A

PROJECT REPORT

ON

COMPARATIVE ANALYSIS OF RELIANCE MUTUAL

FUND WITH HDFC AND ICICI MUTUAL FUND

SUBMITTED BY:

NEHA RAI

M.B.A (IV SEMESTER)

PEOPLES INSTITUTE OF MANAGEMENT AND RESEARCH

BARKATULLAH UNIVERSITY, BHOPAL

YEAR: 2008 2010


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DECLARATION

I HEAR BY DECLARE THAT THE PROJECT REPORT ENTITLED

COMPARATIVE ANALYSIS OF RELIANCE MUTUAL FUND WITH HDFC AND

ICICI MUTUAL FUND IS AN AUTHENTIC WORK DONE BY ME.

THE PROJECT WAS UNDERTAKEN AS A PART OF THE COURSE

CURRICULUM OF M.B.A PROGRAMME , BARKATULLAH UNIVERSITY,

BHOPAL. THIS IS NOT BEEN SUBMITTED TO MY OTHER EXAMINATION

BODY EARLIER.

Signature

(NEHA RAI)

MBA IV SEMESTER


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Contents

INTRODUCTION ............................................................................................ 4

TYPES OF MUTUAL FUNDS SCHEME IN INDIA ........................................ 13

COMPANY PROFILE OF RELIANCE ............................................................... 16

OBJECTIVE .................................................................................................. 28

RESEARCH METHODOLOGY ........................................................................ 29

METHODS OF DATA COLLECTION ............................................................... 30

DATA ANALYSIS AND INTERPRETATION ..................................................... 31

FINDINGS ................................................................................................... 43

SUGGESTIONS ............................................................................................ 44

CONCLUSION ............................................................................................. 45

LIMITATIONS .............................................................................................. 46

BIBLIOGRAPHY ........................................................................................... 47

QUESTIONNAIR .......................................................................................... 48


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INTRODUCTION

There are a lot of investment avenues available today in the financialmarket for an investor with invest able surplus. He can invest in Bank

Deposits, Corporate Debentures, and Bonds where there is low risk but

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

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

Stock Market have shown that an average retail investor always lost

with periodic bearish tends. People began opting for portfolio managers

with expertise in stock markets who would invest on their behalf. Thus

we had wealth management services provided by many institutions.However they proved too costly for a small investor. These investors

have found a good shelter with the mutual funds.

Like most developed and developing countries the mutual fund cult has

been catching on in India. The reasons for this interesting occurrence

are:

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

need for capital growth, income and/or income preservation.

2. Mutual fund brings the benefits of diversification and money

management to the individual investor, providing an Opportunity for

financial success that was once available only to a select few.


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HISTORY

Mutual funds made an opening in India in 1963 under the enactment fUnit Trust of India (UTI), which came out with is debut scheme named

US-64, an open ended scheme n, which is operating till date. Up to 1986-

87 it had launched 20 schemes; mobilizing net resources amounting to

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

complete monopoly of the unit trust business in India. It remained one

and the only mutual fund in India.

It was in 1986 that the government of India amended banking

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

mutual funds. This lead to promotion of SBI-MUTUAL FUND by StateBank Of India (SBI) in July 1987 followed by

Canara Bank

Indian bank Bank of India Bank of Baroda Punjab National bank

The government of India further granted permission to Insurance

Corporation to public sector to float mutual funds. The following were

the corporations,

Life Insurance Corporation General Insurance of Corporation


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This was the picture till 1991, but when in 1991 the government of

India followed a policy of liberalization, privatization, and globalization

it opened the gates to private sector to launch mutual funds.

The History of Indian mutual fund industry can be broadly classified into

The four phases:

Phase 1 July 1964 to November 1987

Phase 1 November 1987- October 1993

Phase 3--- October 1993- February 2003

Phase 4-- since February 2003

Phase 1--- MONOPOLY OF UTI

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

which prepared ground for the future mutual fund industry.

The first decade of UTIs operations was the formativeperiod. The first and still more popular product launched by UTI was

US-64. Due to immense popularity of unit 64, UTI launched a

reinvestment plan in 1966-67. Another popular scheme, Unit Linked

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

there were six lakhs unit holders with UTI .the unit capital totalled

Rs.152 crore and investible funds Rs.172 crore.

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

consolidation and expansion. In this period UTI was delinked from

RBI .The period was marked by the introduction of open ended growth

funds. Six new schemes were introduced during 1981-84. by the end of


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June 84 the investible funds crossed Rs. 1000 crore and unit holders

numbered to 17 lakhs.

During 1984-87, innovative and widely accepted schemes such as

Childrens Gift Growth Fund, Master share were launched. The firstIndian off shore fund, India Fund was launched in august 1986.

Towards the end of 1980s, winds of change had started blowing

in the Indian economy. UTI was one of the few organizations to prepare

fully to face the emerging challenges. In the following years it launched

all round diversification programmes through backward and forward

integration in order to retain its position as the undisputed market

leader.

Phase 2PUBLIC SECTOR COMPETITION

This period was marked by the entry of non-

UTI public sector mutual funds in the market, bringing in competition.

With the opening up of the economy many public sector financial

institution established mutual funds in India. However, the mutual fund

industry remained the exclusive domain of the public sector in this

period.

The first non-UTI mutual fund (SBI mutual fund) was

launched by the State Bank of India in 1987,this was followed by

Canbank mutual fund scheme (launched in December 1987),LIC

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

fund scheme (launched in January 1990).

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

and attracted small investors. The cumulative mobilization of resources

went up from Rs.4500 crores in 1987 (mobilized by UTI alone.) to


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Rs.19000 crore in 1990 (mobilized collectively by UTI, SBI mutual fund,

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

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

of India mutual fund, GIC mutual fund , PNB mutual fund ,collectionincreased to Rs.37,480 crore (1991-92) indicating a 96% increase in

between 1989-90 and 91-92. However UTI continued to be the

dominantly player in the market, though its share declined marginally

from 87.9 % in 1988-89 to 84% in 1991-92.

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

public sector mutual funds. The total collection declined from the 2500

crore to 1960 crore in 92-93. There were two reasons for the fall in the

collection. First, SEBI had prohibited mutual funds from any scheme

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

1993, Indian mutual funds were to form Asset Management Company

(AMC) pending which they could not launch any scheme.

Before 1989 there were no regulatory guidelines for the mutual

fund industry in India. The first such guidelines for setting up and

regulating mutual funds were issued by Reserve Bank Of India but they

were applicable to mutual funds floated by banks. Then the guidelines

were issued by the government of India in 1990 covering all mutual

funds and making them mandatory for all the mutual funds to be

registered with SEBI. These guidelines also set the norms for

registration, management, investment objectives, disclosure, pricing

and valuation of securities, and so on.

These guidelines were revised and Security and Exchange Board of

India (SEBI) regulations 1993 came in to effect on the 20th Jan 1993,rules for formulation, administration, and management of mutual

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

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


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With view to protect the investors right disclosure, norm was alsotightened.

Another significant development during this period was the

opening up of the mutual funds market to the private sector.

PHASE 3-EMEREGENCE OF COMPETITATIVE MARKET.

A new era in mutual fund industry began with the entry of private

sector funds in 1993, posing a serious competition to the existing public

sector funds. The new private sector funds have distinctive operational

advantages. They are Most of them are jointly floated by Indian organization along with

experienced foreign asset management companies, facilitating

access the latest technology and foreign fund management

strategies.

Private sector funds are able to attract the best managerial talentsfrom the public sector.

Starting of the mutual funds has been easier for them becauseinfrastructural inputs created by the public sector mutual funds

were already available.

The first private sector mutual fund to launch a scheme was

the Madras based Kothari Pioneer Mutual fund. It launched the open

ended prima fund in November 1993.

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

o Kothari Pioneer Mutual Fundo ICICI Mutual fundo 20th century mutual fundo Morgan Stanley Mutual Fundo Taurus Mutual fund


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

o Apple mutual fundo JM mutual fundo Shriram mutual fundo CRB mutual fundo Alliance mutual fundo Birla mutual fund

Between 1993 and 1995, further regulatory measures were introduced

The government of India has allowed NRIs and OverseasCorporate Bodies (OCB) to invest in UTI and other mutual funds (in both

primary and secondary market).

The practice of obtaining prior approval for advertising by mutual

funds has been dispensed with Mutual funds are allowed to invest in

money market instruments up to 25% of resources mobilized.

The practice of reissuing of units of closed ended schemes has

been dispensed with Mutual funds are allowed to buy back their ownunits from the secondary marketing case they are traded at a substantial

discount to NAV.

With effect from 1 December 1993 new issuers have been allowed

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

Mutual funds have been allowed to launch income schemes withassured returns one at a time.

Mutual funds have been allowed to enter in to underwriting

activities to augment their resources


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PHASE-4 - (SINCE 2003 FEBRUARY)

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

specified undertaking of the UTI with asset under management of Rs.29,

835 crores as at the end of Jan 2003. The second is the UTI mutual funds

Limited, sponsored by the State Bank of India, Bank of Baroda and Life

Insurance Corporation of India. UTI is functioning under an

administrator and rules framed by the government of India do not come

under the purview of the Mutual fund Regulations. The Mutual Funds

Limited is registered with SEBI and functions under the Mutual Fund

Regulations. With the bifurcation of the erstwhile UTI, with the setting

up of a UTI mutual fund, confirming to the SEBI Mutual Fund

Regulations and recent mergers taking place among different private

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

consolidation and growth.

At the end of September 2004, there are 29 funds, which

manage assets of Rs. 153108 crores under 421 different schemes.

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

No of schemes amount (crores)

Open ended schemes 414 1, 64,998

Closed ended schemes 46 10 920


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Risk factors associated with investing in mutual funds:

Mutual funds and securities investments are subject to market risks and

there is no assurance or guarantee that the objectives of the schemes

will be achieved

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

the schemes can rise or fall depending on the factors and forces

affecting capital markets. Neither the past performance of the mutual

funds managed by the sponsors and their affiliates / associates nor the

past performance of the sponsors, asset management companies (AMC)

nor fund is necessarily indicative of the future performance of the

schemes

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

price of the stocks in which the Fund has invested may decrease. Of

course, the prices may also go up, making it possible for the Fund to

earn profits

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

Risk. Credit Risk refers to the possibility that the company that has

issued the bond or debenture in which the Fund has invested may

default on interest or on principal payments. Debt Fund managers take

care of this by investing in bonds which have good credit rating

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

which the Fund has invested may go down because of an increase in the

interest rates in the economy. In general, it is useful to remember that

this is a "see-saw" relationship - a bond price (and therefore, NAV) goes

up when interest rates drop and drops when interest rates rise.


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Mutual Fund Regulations

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and

LIC. It is registered with SEBI and functions under the Mutual Fund

Regulations. With the bifurcation of the erstwhile UTI which had in

March 2000 more than Rs.76,000 crores of assets under management

and with the setting up of a UTI Mutual Fund, conforming to the SEBI

Mutual Fund Regulations, and with recent mergers taking place among

different private sector funds, the mutual fund industry has entered itscurrent phase of consolidation and growth. As at the end of September,

2004, there were 29 funds, which manage assets of Rs.153108 crores

under 421 schemes.

TYPES OF MUTUAL FUNDS SCHEME IN INDIA

Wide variety of Mutual Fund Schemes exists to cater to the needs suchas financial position, risk tolerance and return expectations etc. Thetable below gives an overview into the existing types of schemes in theIndustry.

By Structureo Open - Ended Schemeso Close - Ended Schemeso Interval Schemes By Investment Objectiveo Growth Schemeso Income Schemeso Balanced Schemeso Money MarketSchemes
http://finance.indiamart.com/india_business_information/types_of_schemes_mutual_funds.htmlhttp://finance.indiamart.com/india_business_information/types_of_schemes_mutual_funds.html


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Other Schemeso Tax Saving Schemeso Special Schemes Index Schemes

Sector Specific

ADVANTAGES OF MUTUAL FUNDS

There are numerous benefits of investing in mutual funds and one of thekey reasons for its phenomenal success in the developed markets likeUS and UK is the range of benefits they offer, which are unmatched by

most other investment avenues.

Diversification

The nuclear weapon in your arsenal for your fight against Risk. Itsimply means that you must spread your investment across differentsecurities (stocks, bonds, money market instruments, real estate, fixeddeposits etc.) and different sectors (auto, textile, information technologyetc.).

Tax Benefits

Any income distributed after March 31, 2002 will be subject to tax in theassessment of all Unit holders. However, as a measure of concession toUnit holders of open-ended equity-oriented funds, income distributionsfor the year ending March 31, 2003, will be taxed at a confessional rateof 10.5%.

Regulations

Securities Exchange Board of India (SEBI), the mutual fundsregulator has clearly defined rules, which govern mutual funds. These

rules relate to the formation, administration and management of mutual


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funds and also prescribe disclosure and accounting requirements. Such

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

Affordability

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

depending upon the investment objective of the scheme. An investor can

buy in to a portfolio of equities, which would otherwise be extremely

expensive.

Features related mutual funds

Reliance was the first fund house to launch sector funds with flexibilityto invest in a range of 0% to 100% in either equity or debt instruments.

Mutual fund investments linked to an ATM/debit card a Relianceinnovation Indias first long-short fund comes from Reliance MutualFund.

As at 31st May 2008, more than 6.6 million people had invested inReliance Mutual Fund; the investments comprised 16% of the countrys

entire mutual fund.


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COMPANY PROFILE OF RELIANCE


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RELIANCE INDUSTRIES

LIMITED

Reliance Group Holdings has grown from a small office

data-processing equipment firm in 1961 into a major insurance and

financial-services group in one generation under one chief.

Reliance's insurance operations constitute the nation's 27th-

largest property and casualty operation. The parent company alsoincludes a development subsidiary in commercial real estate. Reliance's

international consulting group contains several subsidiaries in energy,

environment, and natural resources consulting. A financial arm invests

in other businesses, primarily television stations.

Reliance Insurance started as the Fire Association of

Philadelphia in 1817, organized by 5 hose and 11 engine fire companies.

It became the nation's first association of volunteer fire departments.


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Business got a boost as a result of the Great Chicago Fire of

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

across the country. For the first two years, shareholders received

dividends twice a year of $5 a share, which increased gradually to $10 in

1876.

In 1972, the Reliance insurance group divided its pool so that

Reliance Insurance Company and its Subsidiaries handled most

standard lines, while United Pacific Insurance Company handled the

nonstandard and other operations.

In 1977, the company moved into real estate, forming

Continental Cities Corporation, which became Reliance Development

Group, Inc. This division handled all real estate operations of the parent

company and other subsidiaries.

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

In December 1989, Reliance Capital sold its investment, Days

Corporation, parent company of Days Inn of America, the world's third-

largest hotel chain; it had been purchased in 1984.

Reliance Industries Limited. The Group's principalactivity is to produce and distribute plastic and intermediates, polyester

filament yarn, fiber intermediates, polymer intermediates, crackers,

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

production and marketing operations of the Petroleum refinery. The


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petrochemicals segment includes production and marketing operations

of petrochemical products namely, High and Low density Polyethylene.

"Growth has no limit at Reliance. I keep

revising my vision.

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

Dhirubhai Ambani founded Reliance as a textile company and led its

evolution as a global leader in the materials and energy value chainbusinesses.

He is credited to have brought about the equity cult in India in the lateseventies and is regarded as an icon for enterprise in India. Heepitomized the spirit 'dare to dream and learn to excel'.

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

minded dedication and an unrelenting commitment to his goals.


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RELIANCE MUTUAL FUND

This group dominates this key area in the financial sector. This

mega business houses show that it has assets under management of Rs.

90,938 crore(US$ 22.73 billion) andan investor base of over6.6 million

(Source:www.amfiindia.com).Reliance mutual fund schemes aremanaged by Reliance Capital Asset Management Limited CAM), a

subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-

up capital of RCAM.

The company notched up a healthy growth of Rs. 16,354

crore (US$ 4.09 billion) in assets under management in February2008

and helped propel the total industry-wideAUM to Rs. 565,459 crore

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

maturity plans (FMPs) and collection of Rs. 7000 crore (US$ 1.75 billion)

through new fund offers (NFOs) created this surge. In an Urankings,

Reliance continues to be in the number one spot.

INDIA'S BEST OFFERING: RELIANCE MUTUAL FUND

Investing has become global. Today, a lot of countries are waking up to

the reality that in order to gain financial growth, they must encourage

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

becoming the mode of investment in the world.

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

making waves. Reliance is considered India's best when it comes to

mutual funds. Its investors number to 4.6 billion people. Reliance


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

companies and financial sector in terms of net value.

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

growing investment company in India so far. To meet the erratic

demand of the financial market, Reliance Mutual Fund designed a

distinct portfolio that is sure to please potential investors. Reliance

Capital Asset Management Limited manages RMF.

Vision and Mission

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

show their dedication by continually dishing out innovative offerings

and unparalleled service initiatives. It is their goal to become respected

globally for helping people achieve their financial dreams through

excellent organization governance and customer care. Reliance Mutual

fund wants a high performance environment that is geared at making

investors happy.

RMF aims to do business lawfully and without stepping on other people.

They want to be able to create portfolios that will ensure the liquidity of

the investment of people in India as well as abroad. Reliance Mutual

Fund also wants to make sure that their shareholders realize reasonable

profit, by deploying funds wisely. Taking appropriate risks to reach the

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


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Schemes

To make their packages more attractive, Reliance Mutual Fund created

proposals called The Equity/ Growth scheme, Debt/Income Scheme, and

Sector Specific Scheme.

Debt/Income Scheme, and Sector Specific

Scheme.

The Equity/ Growth scheme give medium to long term capital

increase. The major part of the investment is on equities and they have

fairly high risks. The scheme gives the investors varying options like,

capital augmentation or dividend preference. The choices are not

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

Providing steady and regular income is one of the Debt/Income

Scheme's primary goals. The Debt/Income scheme has in its portfolio

government securities, corporate debentures fixed income securities,

and bonds. Returns on Sector Specific Scheme are dependent on the

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

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

to really give your time on observing the market.

Although RMF is gaining good ground in the financial market,

remember that they are a risk taking bunch. They give higher profit

because they take a lot of risks. So, if you are faint hearted, then Reliance

Mutual Fund is not for you.


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Major competitor of Reliance

Money

Company Profile of HDFC

HDFC BANK is one of the leading Depository Participant (DP) in the

country with over 8 Lac Demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to

keep track of your securities and investments, over a period of time,

without the hassle of handling physical documents that get mutilated or

lost in transit.

HDFC BANK is Depository participant both with -National Securities

Depositories Limited (NSDL) and Central Depository Services Limited

(CDSL).

Features & Benefits

As opposed to the earlier form of dealing in physical certificates with

delays in transaction, holding and trading in Demat form has the

following benefits:

Settlement of Securities traded on the exchanges as well as off market


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transactions.

Shorter settlements thereby enhancing liquidity. Pledging of Securities. Electronic credit in public issue. Auto Credit of Rights / Bonus / Public Issues / Dividend credit through

ECS.

Auto Credit of Public Issue refunds to the bank account. No stamp duty on transfer of securities held in demats form.

No concept of Market Lots.

Change of address, Signature, Dividend Mandate, registration of

power of attorney, transmission etc. can be effected across companies

held in Demat form by a single instruction to the Depository Participant

(DP).

Secured & easy transaction processing

HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet

based transaction) whereby account holder can submit delivery

instructions electronically through SPEED-e website. SPEED-e offers

secured means of transaction processing eliminating preparation of

instruction slips and submission of the same across the counter to the

depository participant. The 'IDEAS' facility helps in viewing the current

transactions and balances (holdings) of Demat account on Internet on

real time basis.


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Company Profile of ICICI

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

Along with stock trading and trading in derivatives in BSE and NSE, it

also provides facility to invest in IPOs, Mutual Funds and Bonds.Trading is available in BSE and NSE

ICICI Direct offers 3 different online trading platforms to its customers

1. Investment AccountAlong with stock trading and IPO investing in BSE and NSE, Wise

Investment account also provide options to invest in Mutual Funds andBonds online.

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

around 19 Mutual Fund companies. ICICI Direct offers various options

while investing in Mutual Funds like Purchase Mutual Fund,

Redemption and switch between different schemes, Systematic

Investment plans, Systematic withdrawal plan and transferring existing

Mutual Funds in to electronic mode. This account also provides facilityto invest in Government of India Bonds and ICICI Bank Tax Saving

Bonds.

ICICIDirect.com website is the primary tool to invest in Mutual Funds,

IPOs, Bonds and stock trading.

Reliance Money

Tax Saving funds Reliance Money:

Tax-saving funds (due to their equity-oriented nature) are

capable of clocking far superior returns their assured return

counterparts like National Savings Certificate (NSC) and Public


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Provident Fund (PPF). However investors must appreciate that the risk

profile of tax-saving funds tends to be proportionately higher.

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

tax-saving funds segment. Flagship diversified equity funds (RelianceGrowth Fund and Reliance Equity Fund) from Reliance Mutual Fund

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

However investors should note that these funds are managed

aggressively; also they have displayed an opportunistic streak by

moving fluidly across market segments (large caps, mid caps) to clock

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

investment proposition within the tax-saving funds segment.

SYSTEM INVESTMENT PLAN

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

investors who are willing to invest regularly rather than making a lumpsum investment. It is just like a recurring deposit with the post office or

bank where we deposit some amount every month. The difference here

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

investment according to their objective .They collect fund from investor

and invests it. Every fund has an objective and pattern of investing.

There are various kinds of mutual funds. There are equity funds and

debt funds. Further equity funds can be divided into equity diversified

mutual fund where funds are invested in shares of different companies ,sectoral funds where investment is made in shares of some particular

sector like FMCG, IT, Auto, Oil & Gas, Banking etc. Every fund has a NAV

(net asset value) which is the value per unit. It is calculated as the total


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asset is divided by the number of outstanding units. As the value of asset

changes, nav also changes.

The best way to invest in stock market is mutual fund through

Systematic Investment Plan. But to get the benefit of an SIP, a long term

horizon is must.


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OBJECTIVE

To give a brief idea about the benefits available from mutual Fundinvestment.

To give an idea of the types of schemes available.

Explore the recent developments in the mutual funds in India.

To give an idea about the regulations of mutual funds.

To analyze reliance mutual fund strategy against its competitor.


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RESEARCH METHODOLOGY

Research as a care full investigation or enquiry especially throughsearch for new facts in any branch of knowledge

Research is an academic activity and such as the term should be used in

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

purpose of generalizing to extend ,correct or verify

knowledge ,whether that knowledge through objective.

TYPES OF RESEARCH

ANALYTICAL RESERCH

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

use facts or information .Already used available, and analyze these to

make a critical evolution of the material.


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METHODS OF DATA COLLECTION

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

Primary data: Primary data collect through observation, or through

direct communication or doing experiments.

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

TOOLS OF ANALYSIS

For the proper analysis of data Quantitative Technique such as

percentage method was used.


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DATA ANALYSIS AND INTERPRETATION


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1. What kind of investments you have made so far? Pl tick (). Allapplicable.

a. Saving account

b. Fixed deposits

c. Insurance

d. Mutual Fund

e. Post Office-NSC, etc

f. Shares/Debentures

g. Gold/ Silver

h. Real Estate

INTERPRETATION:

30% respondent for Fixed deposits, 20 %forMutual Fund,20% for Real

Estate.

10

30

0

20

0

10

10

20 Saving account

Fixed deposits

Insurance

Mutual Fund

Post Office-NSC, etc

Shares/Debentures

Gold/ Silver

Real Estate


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

(a) Liquidity

(b) Low Risk

(c) High Return

(d) Trust

INTERPRETATION:

40% respondent for Low Risk, 30 % forHigh Return, 20% for Liquidity.

20

40

30

10

Liquidity

Low Risk

High Return

Trust


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3. Are you aware about Mutual Funds and their operations? Pl tick().

a) Yesb)No

INTERPRETATION:

80% respondent for Yes , 20 %forNo.

80

20

Yes

No


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

a. Advertisement

b. Peer Group

c. Banks

d. Financial Advisors

INTERPRETATION:

INTERPRETATION: 30% respondent for Financial Advisors, 25 %for

Banks

5

30

25

1.2

Advertisement

Peer Group

Banks

Financial Advisors


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5. Have you ever invested in Mutual Fund? Pl tick ().a) Yesb)Noc)

INTERPRETATION: 50% respondent for Yes , 50 % forNo.

5050

Yes

No


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6. If not invested in Mutual Fund then why?

(a) Not aware of MF

(b) Higher risk

(c) Not any specific reason

INTERPRETATION: 60% respondent for Not aware of MF, 10 % forHigh

risk

6010

30

Not aware of MF

Higher risk

Not any specific reason


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

Company Name Percentages of respondents

Reliance Money 25

HDFC 10

ICICI 15

INTERPRETATION: 50% of respondent have Reliance Money, 30% of

respondent says that other.

25

10

15

Reliance Money

HDFC

ICICI


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

Company Name Percentage of respondent

Reliance 22

HDFC 21

ICICI 7

INTERPRETATION:

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

22

21

15

Reliance Money

HDFC

ICICI


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9. Which banking mutual fund offer a lot of tax saving?Company Name Percentage of respondent

Reliance 20

HDFC 15

ICICI 15

INTERPRETATION:

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

20

15

15

Reliance Money

HDFC

ICICI


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10.Which banking mutual fund offers you a large number of product &services?

Company Name Percentage of respondent

Reliance 18

HDFC 16

ICICI 16

INTERPRETATION:

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

18

16

7

Reliance MoneyHDFC

ICICI


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11. Which banking mutual fund offers you a good e-mail facility?Company Name Percentage of respondent

Reliance 22

HDFC 15

ICICI 13

INTERPRETATION:

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

22

15

7

Reliance Money

HDFC

ICICI


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FINDINGS

1. In Equity Schemes we have taken Reliance Vision Fund and Reliancegrowth Fund. Both schemes are open ended but Reliance Growth fund is

more valuable for Reliance Mutual Fund than reliance vision Fund.

2. In Debt scheme we have taken Reliance money Manager Fund andReliance Liquidity Fund .In it both schemes are open ended but reliance

money manager is more beneficial for reliance mutual fund.

3. In sector specific scheme we have taken Reliance media andentertainment fund and Reliance Pharma fund scheme both is moreefficient for Reliance Mutual Fund.

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

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


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SUGGESTIONS

Reliance Money has to add some extra features in it with aggressivemarketing promotional strategy.

Advertisement on television is the main source of attraction so thecompany must advertise its products heavily.

Product must be improved. There should be provision of complain suggestion boxes at each branch.


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CONCLUSION

1. Mutual Fund investment is better than other raising fund. RelianceMutual Fund has good returns in investment.

2. A good brand is always welcomed over here people are more aware andconscious for the brand so they go for they are ready to spend some

extra bucks for the quality.

3. At last all cons are concluded by that Reliance Money is still growingindustry in India and is still exploring its potential and prospects in here.


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LIMITATIONS

The time constraint was one of the major problems.

The study is limited to the different schemes available under themutual funds selected.

The study is limited to selected mutual fund schemes.

The lack of information sources for the analysis part.


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BIBLIOGRAPHY

Websites:

www.reliancemoney.com

www.HDFC.com

www.icicidirect.com

Reference books:

FINANCIAL INSTITUTIONS AND MARKETS - L.M.BHOLEINVESTMENT MANAGEMENT - V.K.BHALLA

Research Methodology Kothari

Security Analysis and Portfolio Management : Donald E Fischer,Ronald J Jordan

How to rate management of mutual funds : Harvard Business review

Association of mutual funds in India (AMFI) Publications and quarterlyreports

Securities and Exchange Board of India

Investopedia

Mutual Fund Performance : W. Sharpe


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QUESTIONNAIR

DATE..

Name:-

Add: -

Phone:-

Age:-

1. Qualification:-

Graduation/PG

Under Graduate

Others

2. Occupation. Pl tick ()


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Govt. Sector

Pvt. Sector

Business

Agriculture

Others

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

Up to Rs.10,000

Rs. 10,001 to 15000

Rs. 15,001 to 20,000

Rs. 20,001 to 30,000

Rs. 30,001 and above

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

a. Saving account

b. Fixed deposits

c. Insurance

d. Mutual Fund

e. Post Office-NSC, etc

f. Shares/Debentures


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g. Gold/ Silver

h. Real Estate

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

(a) Liquidity

(b) Low Risk

(c) High Return

(d) Trust

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

Yes

No

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

a. Advertisement

b. Peer Group

c. Banks

d. Financial Advisors


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

Yes

No

9. If not invested in Mutual Fund then why?(a) Not aware of MF

(b) Higher risk

(c) Not any specific reason

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

HDFC

ICICI

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

HDFC

ICICI


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12.Which banking mutual fund offer a lot of tax saving?Reliance Money

HDFC

ICICI

13.Which banking mutual fund offers you a large number of product &services?

Reliance Money

HDFC

ICICI

14.Which banking mutual fund offers you a good e-mail facility?Reliance Money

HDFC

ICICI

neha rai final project

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