INTRODUCTIONThe Reliance group ± one of India¶s largest business houses with revenues of Rs. 990 billion ($22.6 billion) that is equal t o 3.5 percent of the country¶s gross domestic product was split into two. The group ± which claims to contribute nearly 10 per cent of the country¶s indirect tax revenues and over six percent of India¶s exports ± was divided betwee n Mukesh Ambani and his younger brother Anil on June 18, 2005. The group¶s activities span exploration, production, refining an d marketing of oil and natural gas, petrochemicals, textiles, financial services, insurance, power and telecom. The family also has interests in advertising agency and life sciences. Reliance Mutual Fund (RMF) is one of Indiaâ¼s leading Mutual Funds, with Average Assets Under Management (AAUM) of Rs. 90,938 Crores (AAUM for Mar 08 ) and an investor base of over 66.87Lakhs. Reliance Mutual Fund, a part of the Reliance ± Anil Dhirubhai Ambani Group, is one of the fastest growing mutual funds in the country. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 115 cities across the country. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. ³Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital being held by minority shareholders .´ Reliance Capital Ltd. is one of Indiaâ¼s leading and fastest growing private sector financial services companies, and ranks among the t op 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services. Reliance Mutual fundhas largest AUM in India. Reliance capital asset Management is no. 1 AMC in India but the picture is not the same in Chhattisgarh. In Chhattisgarh they are no. 2 AMC. Management of Reliancemutual fund wants to expand its feet in Chhattisgarh, before taking any step they want to understand market & investor and distributor behavior of SMEs, so they may plan accordingly to capture Chhattisgarh Market. In this research we have to analyze why, how, where, when & how much an investor invest & according to it, we have to make profile of investors. In this report I have endeavored to understand the factors affecting Investment behavior of an investor in Chhattisgarh. This behavioral study consists of how any investor invests in CG. What factor they consider, why these factors they consider, where do they invest, how do they invest, purpose behind investment, size of investment, timing of investment & duration ofinvestment. This study gave us basis to profile investors. ASSETS UNDER MANAGEMENTAUM for the Month Mar 2008Average AUM Excluding Fund of Funds 9093794.02 Crs.
Management Ltd., the implementation and observance of ethical processes and policies has helped us in
standing up to the scrutiny of our domestic and international investors.
MANAGEMENT
The management at Reliance Capital Asset Management Ltd. is committed to good Corporate
Governance, which includes transparency and timely dissemination of information to its investors andunit holders. The Board of Directors of RCAM is a professional body, including well-experienced and
knowledgeable Independent Members. Regular Audit Committee meetings are conducted to review the
operations and performance of the company.
EMPLOYEES
Reliance Capital Asset Management Ltd. has at present, a code of conduct for all its officers. It has a
clearly defined prohibition on insider trading policy and regulations. The management believes in the
principles of propriety and utmost care is taken while handling public money, making proper and
adequate disclosures.
All personnel at Reliance Capital Asset Management Ltd are made aware of their rights, obligations andduties as part of the Dealing Policy laid down in terms of SEBI guidelines. They are taken through a
well-designed HR program, conducted to impart work ethics, the Code of Conduct, information security,
Internet and e-mail usage and a host of other issues.
One of the core objectives of Reliance Capital Asset Management Ltd. is to identify issues considered
sensitive by global corporate standards, and implement policies/guidelines in conformity with the best
practices as an ongoing process. Reliance Capital Asset Management Ltd. gives top priority to
compliance in true letter and spirit, fully understanding its fiduciary responsibilities.
SPONSORS
â¼×â¼×Reliance Mutual Fundâ¼�â¼� schemes are managed by Reliance Capital Asset ManagementLimited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM,
the balance paid up capital being held by minority shareholders.´, the sponsor. Reliance Mutual
Fund (RMF) has been sponsored by Reliance Capital Ltd (RCL). The promoter of RCL is AAA
Enterprises Private Limited. Reliance Capital Limited is a Non Banking Finance
Company. Reliance Capital Limited is one of the India�s leading and fastest growing financial
services companies, and ranks among the top three private sector financial services and banking
companies, in terms of net worth.
Reliance Capital has interests in asset management and mutual funds, life and non-life insurance,
private equity and proprietary investments, stock broking and other activities in the financial servicessector. The net worth of RCL is Rs. 5,161.23 crores as on March 31, 2007.
GIVEN BELOW IS A SUMMARY OF RCL�S FINANCIALS Particulars(Rs. in crores)
2006-07 2005-06 2004-05 2003-04
Total Income 883.86 652.02 295.69 356.79Profit Before Tax 733.18 550.61 111.21 105.79
Profit After Tax 646.18 537.61 105.81 105.79Reserves & Surplus 4915.07 3849.58 1310.08 1271.84Net Worth 5161.23 4122.46 1437.92 1399.81Earnings per Share(Rs.)
28.39(Basic +Diluted)
29.74(Basic
+Diluted)
8.31(Basic+ Diluted)
8.31(Basic +
Diluted)Book Value per Share (Rs.)
210.12 112.95 112.95 109.96
Dividend (%) 35% 30% 30% 29%Paid up EquityCapital
246.16 223.40 127.84 127.84
Reliance Capital Ltd. has contributed Rupees One Lac as the initial contribution to the corpus for the
setting up of the Mutual Fund. Reliance Capital Ltd. is responsible for discharging its functions and
responsibilities towards the Fund in accordance with the Securities and Exchange Board of India (SEBI)
Regulations.
The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyondthe contribution of an amount of Rupees one Lac made by them towards the initial corpus for setting up
the Fund and such other accretions and additions to the corpus.
THE AMC
RELIANCE CAPITAL ASSET MANAGEMENT COMPANY
Reliance Capital Asset Management Limited (RCAM), a company registered under the Companies Act,
1956 was appointed to act as the Investment Manager of Reliance Mutual Fund.
Reliance Capital Asset Management Limited (RCAM) 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 RCAM dated
May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996.
Pursuant to this IMA, RCAM is authorized to act as Investment Manager ofReliance Mutual Fund. The
net worth of the Asset Management Company including preference shares as on September 30, 2007 is
Rs.152.02 crores.
³Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited., a
subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance
paid up capital being held by minority shareholders.´
Reliance Capital Asset Management Limited (RCAM) was approved as the Asset Management Company
for the Mutual Fund by SEBI by their letter no. IIMARP/1264/95 dated June 30, 1995. The Mutual
Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12, 1995
and was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to
this IMA, RCAM is authorized to act as Investment Manager of Reliance Mutual Fund. The net worth of
the Asset Management Company including preference shares as on March 31, 2005 is Rs.113.59 crores.
MUTUAL FUNDS ASSET UNDER MANAGEMENT: TOP 10 COMPANIES LIST
Mutual Fund Assets Under Management (Rs. cr.) February-   08
March- 08
Change %Change
Reliance Mutual Fund 93,532 90,938 -2,594 -2.77
ICICI Prudential Mutual Fund 59,278 54,322 -4,956 -8.36
UTI Mutual Fund 52,465 48,983 -3,482 -6.64HDFC Mutual Fund 46,292 44,773 -1,519 -3.28
Birla Sun Life Mutual Fund 34,704 35,906 1,202 3.46
SBI Mutual Fund 29,493 29,179 -314 -1.06
Franklin Templeton Mutual Fund 29,902 26,842 -3,059 -10.23
Tata Mutual Fund 20,205 19,679 -526 -2.60
Kotak Mahindra Mutual Fund 20,968 18,071 -2,897 -13.82
DSP Merrill Lynch Mutual Fund 19,139 16,675 -2,463 -12.87
SCHEMES
1. A. EQUITY/GROWTH SCHEMES The aim of growth funds is to provide capital appreciation over
the medium to long- term. Such schemes normally invest a major part of their corpus in equities.
Such funds have comparatively high risks. These schemes provide different options to the investors
like dividend option, capital appreciation, etc. and the investors may choose an option depending on
their preferences. The investors must indicate the option in the application form. The mutual funds
also allow the investors to change the options at a later date. Growth schemes are good for investors
having a long-term outlook seeking appreciation over a period of time.
1. B. DEBT/INCOME SCHEMES The aim of income funds is to provide regular and steady income to
investors. Such schemes generally invest in fixed income securities such as bonds, corporate
debentures, Government securities and money market instruments. Such funds are less risky
compared to equity schemes. These funds are not affected because of fluctuations in equity markets.
However, opportunities of capital appreciation are also limited in such funds. The NAVs of such
funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of
such funds are likely to increase in the short run and vice versa. However, long term investors may
not bother about these fluctuations.
1. C. SECTOR SPECIFIC SCHEMESThese 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. They may also seek
advice of an expert.
PRODUCTS
FOLLOWING ARE SOME OF THE SCHEMES LAUNCHED BY RELIANCE MUTUAL FUND: Reliance Growth Fund Reliance Vision Fund
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.
MAIN OBJECTIVE OF THE TRUST
To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise variouscollective 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 and
To take such steps as may be necessary from time to time to realize the effects without any limitation.
SOCIAL RESPONSIBILITIES
â¼Organizations, like individuals, depend for their survival, sustenance and growth on the support
and goodwill of the communities of which they are an integral part, and must pay back this generosity in
every way they can.â¼This ethical standpoint, derived from the vision of the founder, lies at the heart
of the CSR philosophy of the Reliance Group.
While they strongly believe that their primary obligation or duty as corporate entities is to their
shareholders â¼³ they are just as mindful of the fact that this imperative does not exist in isolation; it is
part of a much larger compact which they have with their entire body of stakeholders: From employees,
customers and vendors to business partners, eco-system, local communities, and society at large.
They evaluate and assess each critical business decision or choice from the point of view of diverse
stakeholder interest, driven by the need to minimize risk and to pro-actively address long-term social,
economic and environmental costs and concerns. For them, being socially responsible is not an
occasional act of charity or that one-time token financial contribution to the local school, hospital or
environmental NGO. It is an ongoing year-round commitment, which is integrated into the very core of
their business objectives and strategy.
Because they believe that there is no contradiction between doing well and doing right.
Indeed, â¼doing right is a necessary condition for doing wellâ¼.
