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PROJECT REPORT
ON
RELIANCE MUTUAL FUND
SUBMITTED FOR THE PARTIAL FULFILLMENT OF
MASTER OF BUSINESS ADMINISTRATION
(INDUSTRY INTEGRATED)
TOMADURAI KAMARAJ UNIVERSITY
UNDER GUIDANCE OF: SUBMITTED BY
Ms. SRISHTI SHARMA PRAVEEN KUMARM.B.A (2nd Semester)
A8750123
rbs
RAI BUSINESS SCHOOL
MADURAI KAMARAJ UNIVERSITY,BHOPALYEAR : 2008-2010
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PREFACE
The successful completion of this project was a unique
experience for me because by visiting many place and
interacting various person ,I achieved a better knowledge
about sales . The experience which I gained by doing this
project was essential at this turning point of my carrer this
project is being submitted which content detailed analysis of
the research under taken by me.
The research provides an opportunity to the student to
devote his/her skills knowledge and competencies required
during the technical session.
The research is on the topic Reliance mutual Fund
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ACKNOWLEDGEMENT
I would like to express my appreciation and gratitude tovarious people who have shared their valuable time and
made possible this project ,through their direct indirect
cooperation .
My honourable Mam Mrs. Swati Tiwari (HOD) and
Mrs. Srishti Sharma (Faculty)Rai business School BHOPAL
,for allowing me to work on this project and provide
necessary help.
I thank my respected faculties ,dear friend &
colleagues ,who help me in every possible ways , support me
and encouraged me to explore new dimensions.
PRAVEEN KUMAR
MBA 2nd Semester
Rai Business School
Bhopal
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CERTIFICATE
This to certify that Ms. PRAVEEN KUMAR,M.B.A II
Semester ,Rai Business School BHOPAL,Madurai KamarajUniversity has done project on Reliance Money and has
successfully completed his project on Reliance Mutual
Fund
This report is completed under my supervision .It is only for
academic purpose and is a bonafide work done by
researcher .
Project Guide
Mrs. Srishti Sharma
FACULTY
Rai Business School,BHOPAL
DECLARATION
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I Priyanka Asati do here by declare that the project work
entitle on the reliance mutual Fund in Indiaat Bhopal is
the original work done by me .
This project report presented as a partial fulfillment
requirement for the degree of Master of Business
administration.
PRAVEEN KUMAR
MBA 2nd semester
Rai business School
Bhopal
CONTENTS
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1. INTRODUCTION 82. COMPANY PROFILE 15
3. COMPETITORS OF RELIANCE MONEY 374. NEED FOR THE STUDY 395. OBJECTIVES OF THE STUDY 426. RESEARCH METHDOLOGY 437. DATA ANALYSIS AND INTERPRETATION 458. OBSERVATION 519. FINDINGS AND SUGGESTION 5210.CONCLUSION 54
11.LIMITATION 5512.BIBLIOGRAPHY 56
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INTRODUCTION
INTRODUCTION
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There are a lot of investment avenues available today in the
financial market for an investor with an invest able surplus. Hecan invest in Bank Deposits, Corporate Debentures, and Bondswhere there is low risk but low return. He may invest in Stock ofcompanies where the risk is high and the returns are alsoproportionately high. The recent trends in the Stock Market haveshown that an average retail investor always lost with periodicbearish tends. People began opting for portfolio managers withexpertise in stock markets who would invest on their behalf.
Thus we had wealth management services provided by manyinstitutions. However they proved too costly for a smallinvestor. These investors have found a good shelter with themutual funds.
Like most developed anddeveloping 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 tosatisfy their need for capital growth, income and/or incomepreservation.
2. Mutual fund brings the benefits of diversification andmoney management to the individual investor, providing a
Opportunity for financial success that was once available only toa select few.
HISTORY
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Unit Trust of India is the first Mutual Fund set up under a
separate act, UTI Act in 1963, and started its operations in 1964
with the issue of units under the scheme US-641. In 1978 UTIwas delinked from the RBI and Industrial Development Bank ofIndia (IDBI) took over theRegulatory and administrative control in place of RBI.
In the year 1987 Public Sector banks like State Bank of India, Punjab National Bank, Indian Bank, Bank of India, andBank of Baroda have set up mutual funds.
Apart from these above mentioned banks Life Insurance
Corporation [LIC] and General Insurance Corporation [GIC] toohave set up mutual fund. LIC established its mutual fund in June1989.while GIC had set up its mutual fund in December1990.The mutual fund industry had assest under management ofRs. 47,004 crores.
With the entry of Private Sector Funds a new era has started in Mutual Fund Industry [e.g:- Principal Mutual Fund.]
Mutual Fund Regulations
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The second is the UTI Mutual Fund Ltd, sponsored by SBI,PNB, BOB and LIC. It is registered with SEBI and functionsunder the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs.76,000crores of assets under management and with the setting up of aUTI Mutual Fund, conforming to the SEBI Mutual FundRegulations, and with recent mergers taking place amongdifferent private sector funds, the mutual fund industry hasentered its current phase of consolidation and growth. As at theend of September, 2004, there were 29 funds, which manageassets of Rs.153108 crores under 421 schemes.
Types of MutualFunds Scheme in India
Wide variety of Mutual Fund Schemes exist to cater to the needssuch as financial position, risk tolerance and return expectations
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etc. The table below gives an overview into the existing types ofschemes in the Industry.
By Structureo Open - Ended Schemeso Close - Ended Schemeso Interval Schemes
By Investment Objectiveo Growth Schemeso Income Schemeso Balanced Schemeso Money Market Schemes
Other Schemeso Tax Saving Schemeso Special Schemes
Index Schemes Sector Specfic
ADVANTAGES OF MUTUAL FUNDS
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There are numerous benefits of investing in mutual funds andone of the key reasons for its phenomenal success in thedeveloped markets like US and UK is the range of benefits they
offer, which are unmatched by most other investment avenues.
Diversification
The nuclear weapon in your arsenal for your fight againstRisk. It simply means that you must spread your investmentacross different securities (stocks, bonds, money market
instruments, real estate, fixed deposits etc.) and different sectors(auto, textile, information technology etc.).
Tax Benefits
Any income distributed after March 31, 2002 will be subject totax in the assessment of all Unit holders. However, as a measureof concession to Unit holders of open-ended equity-oriented
funds, income distributions for the year ending March 31, 2003,will be taxed at a concessional rate of 10.5%.
Regulations
Securities Exchange Board of India (SEBI), the mutualfunds regulator has clearly defined rules, which govern mutualfunds. These rules relate to the formation, administration andmanagement of mutual funds and also prescribe disclosure and
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accounting requirements. Such a high level of regulation seeksto protect the interest of investors
Affordability
A mutual fund invests in a portfolio of assets, i.e. bonds, shares,etc. depending upon the investment objective of the scheme.Azn investor can buy in to a portfolio of equities, which wouldotherwise be extremely expensive.
Features related mutual funds
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Reliance was the first fund house to launch sector fundswith flexibility to invest in a range of 0% to 100% ineither equity or debt instruments.
Mutual fund investments linked to an ATM/debit carda Reliance innovation Indias first long-short fundcomes from Reliance Mutual Fund .
As at 31st May 2008, more than 6.6 million people had
invested in Reliance Mutual Fund;the investmentscomprised 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 asmall office data-processing equipment firm in 1961 into amajor insurance and financial-services group in one generationunder one chief.
Reliance's insurance operations constitute thenation's 27th-largest property and casualty operation. The parentcompany also includes a development subsidiary in commercial
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real estate. Reliance's international consulting group containsseveral subsidiaries in energy, environment, and naturalresources consulting. A financial arm invests in other
businesses, primarily television stations.
Reliance Insurance started as the Fire Association ofPhiladelphia in 1817, organized by 5 hose and 11 engine firecompanies. It became the nation's first association of volunteerfire departments.
Business got a boost as a result of the GreatChicago Fire of 1871.The association soon developed a field ofagents to write policies across the country. For the first twoyears, shareholders received dividends twice a year of $5 ashare, which increased gradually to $10 in 1876.
In 1972, the Reliance insurance group divided its poolso that Reliance Insurance Company and its
subsidiaries handled most standard lines, while United PacificInsurance Company handled the nonstandard and otheroperations.
In 1977, the company moved into real estate, formingContinental Cities Corporation, which became RelianceDevelopment Group, Inc. This division handled all real estate
operations of the parent company and other subsidiaries.
Reliance Capital Group, L.P. constituted theinvestment branch of the Reliance conglomerate.
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In December 1989, Reliance Capital sold its investment, DaysCorporation, parent company of Days Inn of America, theworld's third-largest hotel chain; it had been purchased in 1984.
Reliance Industries Limited. The Group's principal activity is to produce and distribute plastic andintermediates, polyester filament yarn, fibre intermediates,polymer intermediates, crackers, chemicals, textiles, oil and gas.The refining segment includes production and marketingoperations of the Petroleum refinery. The petrochemicalssegment includes production and marketing operations of
petrochemical products namely, High and Low densityPolyethylene.
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"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 andled its evolution as a global leader in the materials and energyvalue chain businesses.
He is credited to have brought about the equity cult in India inthe late seventies and is regarded as an icon for enterprise inIndia. He epitomized the spirit 'dare to dream and learn to excel'.
The Reliance Group is a living testimony to his indomitablewill, single-minded dedication and an unrelenting commitmentto his goals.
RELIANCE MUTUAL FUND
This groupdominates this key areain the financial
sector..This megabusiness houses show that it has assetsundermanagement ofRs. 90,938 crore(US$ 22.73 billion) andaninvestor base of over6.6 million(Source:www.amfiindia.com).Reliances mutual fundschemesare managed byReliance Capital AssetManagementLimitedRCAM), a subsidiary of
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Reliance Capital Limited,which holds 93.37% ofthe paid-upcapitalof RCAM.
The company notchedup a healthy growth
ofRs. 16,354 crore(US$ 4.09 billion)in assets under managementin February2008 and helped propelthe total industry-wideAUMto Rs. 565,459 crore (US$ 141.36 billion)(Source:indiainvestments.com). A sharp rise infixed maturity plans(FMPs) and collection ofRs. 7000 crore (US$ 1.75 billion)through newfund offers (NFOs) created this surge. InAUrankings, Reliance continues to be in thenumber one spot.
India's Best Offering: Reliance Mutual Fund
Investing has become global. Today, a lot of countries arewaking up to the reality that in order to gain financial growth,they must encourage their citizens to not only save but alsoinvest. Mutual funds are fast becoming the mode of investmentin the world.
In India, a mutual fund company called the Reliance MutualFund is making waves. Reliance is considered India's best whenit comes to mutual funds. Its investors number to 4.6 billionpeople. Reliance Capital Asset Management Limited ranks inthe top 3 of India's banking companies and financial sector interms of net value.
The Anil Dhirubhai Ambani Group owns Reliance; they are thefastest growing investment company in India so far. To meet theerratic demand of the financial market, Reliance Mutual Funddesigned a distinct portfolio that is sure to please potential
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investors. Reliance Capital Asset Management Limited managesRMF.
Vision And Mission
Reliance Mutual Fund is so popular because it is investorfocused. They show their dedication by continually dishing outinnovative offerings and unparalleled service initiatives. It istheir goal to become respected globally for helping peopleachieve their financial dreams through excellent organizationgovernance and customer care. Reliance Mutual fund wants ahigh performance environment that is geared at makinginvestors happy.
RMF aims to do business lawfully and without stepping on otherpeople. They want to be able to create portfolios that will ensurethe liquidity of the investment of people in India as well asabroad. Reliance Mutual Fund also wants to make sure that their
shareholders realize reasonable profit, by deploying fundswisely. Taking appropriate risks to reach the company'spotential is also one of Reliance Mutual Fund's objectives.
Schemes
To make their packages more attractive, Reliance Mutual Fund
created proposals called The Equity/ Growth scheme,Debt/Income Scheme, and Sector Specific Scheme.
i. Debt/Income Scheme, and Sector Specific Scheme.
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The Equity/ Growth scheme give medium to long termcapital increase. The major part of the investment is onequities and they have fairly high risks. The scheme gives
the investors varying options like, capital augmentation ordividend preference. The choices are not deadlockedbecause if you want you may change the options later on.
Providing steady and regular income is one of theDebt/Income Scheme's primary goals. The Debt/Incomescheme has in its portfolio government securities, corporatedebentures fixed income securities, and bonds. returns on
Sector Specific Scheme are dependent on the performanceof the industry at which your money is invested upon.Compared to diversified funds this is a lot more risky andyou will need to really give your time on observing themarket.
Although RMF is gaining good ground in the
financial market, remember that they are a risk takingbunch. They give higher profit because they take a lot ofrisks. So, if you are faint hearted, then Reliance MutualFund is not for you.
GROWTH OF RELIANCE MONEY THROUGH
RECOGNITION
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Growth through Recognition
Reliance has merited a series of awards and recognitions for
excellence for businesses and operations.
Corporate Ranking and Ratings:
Reliance featured in the Fortune Global 500 list of WorldsLargest Corporations for the fourth consecutive year.
Ranked 269th in 2007 having moved up 73 places from theprevious year.
Featured as one of the worlds Top 200 companies in termsof Profits.
Among the top 25 climbers for two years in a row.
Featured among top 50 companies with the biggest increase
in Revenues.
Ranked 26th within the refining industry.
Reliance is ranked 182nd in the FT Global 500 (up fromprevious years 284th rank).
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PetroFed, an apex hydrocarbon industry association,conferred the PetroFed 2007 awards in the categories ofRefinery of the Year and Exploration & Production -
Company of the Year. Brand Reliance was conferred the Bronze Award at The
Buzziest Brands Awards 2008, organized by agencyfaqs!
Institute of Economic Studies conferred the Udyog Ratnaaward in October 2007 for contributions to the industry.
Chemtech Foundation conferred the Hall of Fame in
February 2008 for sterling contributions to the industry.
Chemtech Foundation conferred the OutstandingAchievement - Oil Refining for work at the JamnagarManufacturing Division.
Petroleum Federation of India conferred the Refinery of theYear Award - 2007 to Jamnagar Manufacturing Division
The Plastics Export Promotion Council - PLEXCOUNCILExport Award in the category of Plastic Polymers for theyear 2006-2007 was awarded to Reliance being the largestexporter in this category.
HEALTH:-
Jamnagar Manufacturing Division was conferred theGolden Peacock Award for Occupational Health & Safety- 2007 by Institute of Directors.
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Jamnagar Manufacturing Division was conferred the ICCAward for Water Resource Management in ChemicalIndustry.
Jamnagar Manufacturing Division was conferred the GoodHouse Keeping Award from Baroda Productivity Council.
Jamnagar Manufacturing Division was conferred the BEL-IND Award for the best scientific paper at the 58thNational Conference of Occupational Health.
Naroda Manufacturing Division was conferred the Safety
Award and Certificate of Appreciation presented byGujarat Safety Council & Directorate of Industrial Safety &Health, Gujarat State for the recognition of safetyperformance at the 29th State Level Annual SafetyConference.
Dahej Manufacturing Division received BSC 5-Starrating from British Safety Council, UK.
Dhenkanal Manufacturing Division received the 2nd Prizefor Longest Accident Free Period from the HonbleMinister of Labour, State of Orissa.
Hoshiarpur Manufacturing Division bagged the First Prizein Safety in Punjab, organized by Punjab Safety Council.
Patalganga Manufacturing Division won the Gold Medalat CASHe (Change Agents for Safety, Health andEnvironment) Conference. It also won the III Prize inProcess Management category for Presentation on Safetythrough Design in chemical process industry in Petrosafe2007 Conference.
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Exploration & Production (E&P) Division won TheInfraline Energy Excellence Awards 2007: HydrocarbonColumbus Award for Excellence in Petroleum
Exploration. Patalganga Manufacturing Division won the First Prize in
Energy Conservation in State of Maharashtra organizedby Maharashtra Energy Development Agency (MEDA).
Jamnagar Manufacturing Division won the Oil & GasConservation Award -2007 from the Centre for HighTechnology, Ministry of Power & Natural Gas for theexcellent performance in reduction/elimination of steamleaks in the plant.
Jamnagar Manufacturing Division was the recipient of theInfraline Energy Award-2007 by Ministry of Power.
Hazira Manufacturing Division won the Government ofIndia Energy Conservation Award (2007) conferred by the
Bureau of energy efficiency and Ministry of Power.
Hazira Manufacturing Division was adjudged ExcellentEnergy Efficient Unit at Energy Summit - 2007 by CII.
Vadodara Manufacturing Division received the CII award forExcellence in Energy Management - 2007 as energyefficient unit. This division also received the 2nd prize in
National Energy Conservation Award 2007 from Bureauof Energy efficiency, Ministry of Power, Government ofIndia.The Companys manufacturing divisions at Vadodara andHazira were honoured with CII-National award for excellence
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in water management - 2007 as water efficient unit in Withinthe fence category. Additionally, Hazira ManufacturingDivision was honoured as water efficient unit Beyond the
Fence category.
Quality:-
For the first time ever, globally, a petrochemical companybagged the Deming Prize for Management Quality. The
Quality Control Award for Operations Business Unit 2007was awarded to the Hazira Manufacturing Division forOutstanding Performance by Practicing Total QualityManagement.
QUALTECH PRIZE 2007, which recognizesextraordinary results in improvement and innovation, waswon by Hazira Manufacturing Division for its Small Group
Activity Project.
Vadodara Manufacturing Divisions Polypropylene-IV (PP-IV) plant was conferred the Spheripol Process OperabilityAward-2006 for the highest operability rate with an onstream factor 98.97% by M/s. BASELL, Italy.
Allahabad Manufacturing Division won the Excellent
Category Award at National Convention of Quality Circle(NCQC) - 07.
Six-Sigma:-
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Lean Six sigma project on Reducing retention time ofcaustic soda lye tankers at Jamnagar won the 1st prize inthe national level competition held by Indian Statistical
Institute (ISI). Patalganga Manufacturing Divisions Six Sigma Project on
Improve Transfer Efficiency for Automatic winders in PFYwon the 2nd Prize for Best design for Six Sigma Project inInternational Six Sigma Competition organized by IQPC(International Quality and Productivity center).
Barabanki Manufacturing Division won the 3rd prize inAll India Six Sigma case study contest 2008 for the Casestudy on Reduction of waste of Plant 2 from 16% to 8%.
Hoshiarpur Manufacturing Division won the 2nd prize inSix Sigma competition at National Level organized byISI and Quality Council of India (in manufacturingcategory), while Dhenkanal and Barabanki Manufacturing
Divisions won the 3rd prize.Vadodara Manufacturing Divisions Six Sigma project wonthe 1st prize as the Best Six Sigma project at National levelby CII.
Technology, R&D and Innovation:-
Vadodra Manufacturing Divisions R&D bagged an awardfrom Indian Institute of Chemical Engineers for Excellencein Process / Product Development for the work on Ecofriendly Process for Acetonitrile Recovery.
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DSIR National Award for R&D Efforts in Industry(2007) was conferred on Hazira Manufacturing Divisionfor the Cyclehexane Recovery Project.
Patalganga Manufacturing Divisions Project titledAugmentation of ETP and use of biogas in Fired heaterswon the Best Innovative Project from CII.
Reliance bagged the Innovation Award at Tech Converge2007 for innovative developments in short-cut fibres.
Hazira Manufacturing Division won the Golden Peacock
Innovation Award - 2007 for its Cyclohexane RecoveryProcess.
Information Technology:-
CIO of the Year Award for the best IT-enabledorganization in India for the Year 2007.
Ones to Watch - CIO - USA Award, for figuring amongthe top 20 organizations fostering excellence in IT team.
The Skoch Challenger Award conferred for the best ITHead (managing the most IT enabled organization) of theYear 2007.
Best IT Implementation Award, by PC Quest forKnowledge Management Systems portal (KMS).
CIO Excellence Award for Chemical IndustryInformation Technology Forum for exemplary Information
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Technology implementation amongst global chemicalcompanies.
CTO Forum Hall of Fame Award for the best CIOs in India
for not only providing service to their
PRODUCT S : RELIANCE MONEY
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The products on offer from Reliance MutualFund fall into fourmain categories: equity, debt,sector specific and ETF (ExchangeTraded Fund).Each taps into a specific audience profile fulfilling
their varying needs.Under the equity category, Reliance has118SUPERBRANDS sixteen schemes with Reliance GrowthFundand Reliance Vision Fund as its flagship schemes.RelianceEquity Opportunities Fund is a schemewhich operates in themulti-cap/multi-sectorsegment; Reliance Equity Fund is a long-shortfund, Reliance Quant Plus Fund is a quant fund.Relianceoffers investments in banking, power,media, entertainment andpharmaceuticals;Reliance Tax Saver Fund and Reliance Equity-
Linked Savings Fund Series 1 are tax saving schemes; an NRI-dedicated equity scheme istailored for non-resident Indians. RelianceRegular Savings Fundis an asset-allocation fund with three options.Under the debt andliquid categories, Reliancehas liquid funds, liquid plus funds,income funds,an NRI-dedicated debt fund, gilt funds,fixedmaturity plans and an interval fund.In the hybrid category,
Reliance Monthlyincome Plan is a popular option
Reliance understands that investments in mutualfundshare a function of knowledge dissemination and awarenessof products amongst potential investors. In building its ownbaseof assets under management it will necessarily have to carry theentire mutual fundindustry.Towards this end Reliance has launched a t wo-pronged initiative.In the first pincer it has created aformidablenetwork of 26,000 distributors including some of thebiggestnames in the banking sector.This whos who of the financialindustry comprises such giants asCitibank, Standard Chartered,HSBC,ICICI, AXIS, Bank of Baroda, Central Bank of India,
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Allahabad Bank andfund houses such as JM, DSP Merrill Lynchand Karvy in addition to a massive infrastructure of directfinancial investment officers. Thisprodigious effort is
supplemented by thebrands captive network of 120 branchofficesand 30 financial centres. In the second prong, Reliance hascreated a series of informationpacked presentations which helpdispel misinformationGroup.This mega business housedominates this key area in the financial sector.Figures for March2008 show that it has emerged as the top Indian mutual fundwith average assets under management of Rs. 90,938 crore (US$
22.73 billion) and an investor base of over 6.6 million(Source:www.amfiindia.com).
Reliances mutual fund schemes aremanaged by RelianceCapitalAssetManagementLimited(RCAM), a subsidiary of Reliance Capital Limited,which holds93.37% of the paid-up capitalof RCAM.The companynotchedup a healthy growth ofRs. 16,354 crore (US$
4.09billion)inassetsunder management in February2008 andhelped propelthe total industry-wideAUM to Rs. 565,459crore(US$ 141.36 billion) (Source: indiainvestments.com). Asharp rise infixed maturity plans (FMPs)andcollection of Rs.7000 crore (US$ 1.75 billion) through new fund offers (NFOs)created this surge. InAUMrankings, Reliance continues to be inthenumber one spot.
Reliance was the first fund house to launch sector funds withflexibility to invest in a range of 0% to 100% in either equity ordebt instruments Mutual fund investments linked toanATM/debit card are a Reliance innovationIndias first long-short fund comes from Reliance Mutual Fund As at 31st May
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Trusted Mutual Fund.Thecompanyalsowalked away with sevenother scheme prizes five of them being outright winners inthe Gulf 2007 Lipper Awards.These included the Fund House of
the Year by Lipper GCC as well asICRA Online and the MostImproved FundHouse by Asia Asset Management.It alsoreceived the NDTV Business Leadership Award 2007 in themutual fund category and runners up recognition as the BestFund House in theOutlook Money-NDTV Profit Awards. Inaddition,the company received thecoveted CNBC Web18Genius of the Web distinction for the Best Mutual Fund Websiteinthe country. RCAM was awarded the India Onshore Fund
House 2008 instituted by theAsian Investor magazine.Thecompany also won the India Equities award in the 5-yearPerformance category.
COMPARATIVE STUDY OF MUTUAL FUND
Major competitior of Reliance Money
Company Profile of HDFCHDFC BANK is one of the leading Depository Participant (DP)
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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 physicaldocuments that get mutilated or lost in transit.
HDFC BANK is Depository particpant both with -NationalSecurities Depositories Limited (NSDL) and Central DepositoryServices Limited (CDSL).
Features & Benefits
As opposed to the earlier form of dealing in physical certificateswith delays in transaction, holding and trading in Demat formhas the following benefits :
Settlement of Securities traded on the exchanges as well as
off market transactions. Shorter settlements thereby enhancing liquidity.
Pledging of Securities.
Electronic credit in public issue.
Auto Credit of Rights / Bonus / Public Issues / Dividendcredit through ECS.
Auto Credit of Public Issue refunds to the bank account.
No stamp duty on transfer of securities held in demat form.No concept of Market Lots.Change of address, Signature, Dividend Mandate,
registration of power of attorney, transmission etc. can beeffected across companies held in demat form by a single
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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 submitdelivery instructions electronically through SPEED-e website(https://speed-e.nsdl.com). SPEED-e offers secured means oftransaction processing eliminating preparation of instructionslips and submission of the same across the counter to thedepository participant. The 'IDEAS' facility helps in viewing the
current transactions and balances (holdings) of Demat accounton Internet on real time basis.
Company Profile of ICICI
ICICIDirect (or ICICIDirect.com) is stock trading company of ICICIBank. Along with stock trading and trading in derivatives in BSE and
NSE, it also provides facility to invest in IPOs, Mutual Funds and
Bonds. Trading is available in BSE and NSE
ICICIDirect offers 3 different online trading platforms to its customers
1. Investment Account
Along with stock trading and IPO investing in BSE and NSE, WiseInvestment account also provide options to invest in Mutual Fundsand Bonds online.
Online Mutual funds investment allows investor to invest on-linein around 19 Mutual Fund companies. ICICI Direct offers variousoptions while investing in Mutual Funds like Purchase MutualFund, Redemption and switch between different schemes,Systematic Investment plans, Systematic withdrawal plan and
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transferring existing Mutual Funds in to electronic mode. Thisaccount also provides facility to invest in Government of IndiaBonds 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 returncounterparts like National Savings Certificate (NSC) and Public
Provident Fund (PPF). However investors must appreciate thatthe risk profile of tax-saving funds tends to be proportionatelyhigher.
Reliance Tax Saver (ELSS) Fund (RTSF) is the latest entrantin the tax-saving funds segment. Flagship diversified equityfunds (Reliance Growth Fund and Reliance Equity Fund) fromReliance Mutual Fund have emerged as top performers in theirsegment across time horizons. However investors should notethat these funds are managed aggressively; also they havedisplayed an opportunistic streak by moving fluidly acrossmarket segments (large caps, mid caps) to clock superiorgrowth. 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 designedfor those investors who are willing to invest regularly rather thanmaking a lump sum investment. It is just like a recurring deposit
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with the post office or bank where we deposit some amountevery month. The difference here is that the amount is investedin 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 arevarious kinds of mutual funds. There are equity funds and debtfunds. Further equity funds can be divided into equitydiversified mutual fund where funds are invested in shares ofdifferent companies , sectoral funds where investment is made inshares of some particular sector like FMCG, IT, Auto, Oil &Gas, Banking etc. Every fund has a NAV (net asset value) which
is the value per unit. It is calculated as the total asset is divided by the number of outstanding units. As the value of assetchanges, nav also changes.
The best way to invest in stock market is mutual fund throughSystematic Investment Plan. But to get the benefit of an SIP, along term horizon is must.
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OBJECTIVE
To give a brief idea about the benefits available frommutual Fund investment.
To give an idea of the types of schemes available.
Explore the recent developments in the mutual funds inIndia
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 specially throughsearch for a new facts in any branch of knowledgeResearch is an academic activity and such as the term should beused in technical sense.The manipulation of things , concepts orsymbols for the purpose of generalizing to extend ,correct orverify knowledge ,whether that knowledge through objective.
TYPES OF RESEARCH
ANALYTICAL RESERCH
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In this project work, analytical research is used. In this projecthas to use facts or information .Already used available ,andanalyze these to make a critical evolution of the material.
METHODS OF DATA COLLECTION
In this project work primary and secondary data sources of datahas been used.
Primary data: Primary data collect through observation ,orthrough direct communication or doing experiments .
Secondary data:Secondary data means already available throughbooks ,journals , magazines ,newspaper.
TOOLS OF ANALYSIS
For the proper analysis of data Quantitative Technique such aspercentage method was used.
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DATA ANALYSIS AND INTERPRETATION
Q.1 Which banking mutual fund do you prefer for mutualFund ?
Co mpany Name Persentages of respondents
Reliance Money 25
HDFC 10
ICICI 15
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0
5
10
15
20
25
Reliance HDFC ICICI
INTERPRETATION: 50% of respondent have Reliance
Money , 30% of respondent says that other%.
Q.2 Which banking mutual fund offer you good investment
plan?
Company Name Percentage of respondent
Reliance 22
HDFC 21
ICICI 7
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0
5
10
15
20
25
RELIANCE HDFC ICICI
INTERPRETATION:44% respondent for Reliance,32 %forHdfc,14% for ICICI
Q.3 Which banking mutul fund offer a lot of tax saving?Company Name Percentage of respondent
Reliance 20
HDFC 15
ICICI 15
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0
5
10
15
20
Reliance HDFC ICICI
INTERPRETATION:
40% respondent for Reliance,30 %forHdfc,30% for ICICI
Q.4 Which banking mutual fund offer you a large number of
product & services?Company Name Percentage of respondent
Reliance 18
HDFC 16
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ICICI 16
15
15.5
16
16.5
17
17.5
18
Reliance HDFC ICICI
INTERPRETATION:36% respondent for Reliance,32%forHdfc,32% for ICICI
Q.5 Which banking mutual fund offer you a good e-mailfacility ?
Company Name Percentage of respondent
Reliance 22
HDFC 15
ICICI 13
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0
5
10
15
20
25
Reliance HDFC ICICI
INTERPRETATION:44% respondent for Reliance,30%forHdfc,26% for ICICI
Represent by pie chart
48
Reliance
41%
HDFC
30%
ICICI
29%
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OBSERVATION
50% of respondent have Reliance Money , 30% ofrespondent says that other%.
44% respondent for Reliance,32 %forHdfc,14% for ICICI.
40% respondent for Reliance,30 %forHdfc,30% for ICICI.
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36% respondent for Reliance,32%forHdfc,32% for ICICI.
44% respondent for Reliance,30%forHdfc,26% for ICICI.
FINDINGS AND SUGGESTION
In Equity Schemes we have taken Reliance Vison Fund andReliance growth Fund . Both schemes are open ended but
Reliance Growth fund is more valuable for Reliance MutualFund than reliance vision Fund.
In Dedt scheme we have taken Reliance money Manager Fundand Reliance Liquidty Fund .In it boths schemes are open ended but reliance money manager is more beneficial for reliancemutual fund .
In sector specific scheme we have taken Reliance media andentertainment fund and Reliance Pharma fund scheme
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both is more efficient for Reliance Mutual Fund.
Above all the schemes of Reliance Mutual Fund Debt schemesare best schemes for Mutual Fund .
There is a Good investment plan and saving scheme in relianceMutual Fund.
SUGGESTION
Reliance Money have to add some extra features in it withaggressive marketing promotional strategy.
Advertisement on television is the main source of attractionso the company must advertise its products heavily.
Product must be improved .
There should be provision of complain suggestion boxes ateach branch.
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CONCLUSION
Mutual Fund investment is better than other raising fund .
Reliance Mutual Fund have good returns in investment .
A good brand is always welcomed over here people are moreaware and conscious for the brand so they go for they are readyto spend some extra bucks for the quality .
At last all con be concluded by that Reliance Money is still
growing industry in India and is still exploring its potential and prospects in here.
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Limitations
The time constraint was one of the major problems. The study is limited to the different schemes available under
the mutual 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.comwww.hdfc.comwww.icicidirect.com
Referencebooks:FINANCIAL INSTITUTIONS AND MARKETS -L.M.BHOLEINVESTMENT MANAGEMENT - V.K.BHALLA
Research Methodology - Kothari
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QUESTIONNAIR
Q.1 Which banking mutual fund do you prefer for mutualFund ?
Reliance Money HDFC
ICICI
Q.2 Which banking mutual fund offer you good investmentplan?
Reliance Money
HDFC ICICI
Q.3 Which banking mutul fund offer a lot of tax saving?
Reliance Money
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HDFC
ICICI
Q.4 Which banking mutual fund offer you a large number ofproduct & services?
Reliance Money
HDFC
ICICI
Q.5 Which banking mutual fund offer you a good e-mail
facility ? Reliance Money
HDFC
ICICI