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RELIANCE MUTUAL FUND praveen

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PROJECT REPORTON RELIANCE MUTUAL FUNDSUBMITTED FOR THE PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) TO MADURAI KAMARAJ UNIVERSITY

UNDER GUIDANCE OF :Ms. SRISHTI SHARMA

SUBMITTED BYPRAVEEN KUMAR M.B.A (2nd Semester) A8750123

rbs RAI BUSINESS SCHOOL MADURAI KAMARAJ UNIVERSITY,BHOPAL YEAR : 2008-2010

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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ACKNOWLEDGEMENTI would like to express my appreciation and gratitude to various people who have shared their valuable time and made possible this project ,through their direct indirect cooperation . 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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CERTIFICATEThis to certify that Ms. PRAVEEN KUMAR,M.B.A II Semester ,Rai Business School BHOPAL,Madurai Kamaraj University 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

DECLARATION4

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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INTRODUCTION 2. COMPANY PROFILE 3. COMPETITORS OF RELIANCE MONEY 4. NEED FOR THE STUDY 5. OBJECTIVES OF THE STUDY 6. RESEARCH METHDOLOGY 7. DATA ANALYSIS AND INTERPRETATION 8. OBSERVATION 9. FINDINGS AND SUGGESTION 10.CONCLUSION 11.LIMITATION 12.BIBLIOGRAPHY1.

8 15 37 39 42 43 45 51 52 54 55 56

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INTRODUCTION

INTRODUCTION7

There are a lot of investment avenues available today in the financial market for an investor with an invest able surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions. However they proved too costly for a small investor. These investors have found a good shelter with the mutual funds. Like most developed and developing countries the mutual fund cult has been catching on in India. The reasons for this interesting occurrence are: 1. Mutual funds make it easy and less costly for investors to satisfy their need for capital growth, income and/or income preservation. 2. Mutual fund brings the benefits of diversification and money management to the individual investor, providing a Opportunity for financial success that was once available only to a select few.

HISTORY8

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 UTI was delinked from the RBI and Industrial Development Bank of India (IDBI) took over the Regulatory 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, and Bank of Baroda have set up mutual funds. Apart from these above mentioned banks Life Insurance Corporation [LIC] and General Insurance Corporation [GIC] too have set up mutual fund. LIC established its mutual fund in June 1989.while GIC had set up its mutual fund in December 1990.The mutual fund industry had assest under management of Rs. 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 Regulations9

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 its current 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 MutualFunds Scheme in India

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Wide variety of Mutual Fund Schemes exist to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry.

By Structure o Open - Ended Schemes o Close - Ended Schemes o Interval Schemes By Investment Objective o Growth Schemes o Income Schemes o Balanced Schemes o Money Market Schemes Other Schemes o Tax Saving Schemes o Special Schemes Index Schemes Sector Specfic

ADVANTAGES OF MUTUAL FUNDS

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There are numerous benefits of investing in mutual funds and one of the key reasons for its phenomenal success in the developed markets like US and UK is the range of benefits they offer, which are unmatched by most other investment avenues.

Diversification The nuclear weapon in your arsenal for your fight against Risk. It simply means that you must spread your investment across different securities (stocks, bonds, money market instruments, real estate, fixed deposits etc.) and different sectors (auto, textile, information technology etc.). Tax Benefits Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit holders. However, as a measure of concession to Unit holders of open-ended equity-oriented funds, income distributions for the year ending March 31, 2003, will be taxed at a concessional rate of 10.5%.

Regulations

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Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds and also prescribe disclosure and accounting requirements. Such a high level of regulation seeks to protect the interest of investors Affordability A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment objective of the scheme. Azn investor can buy in to a portfolio of equities, which would otherwise be extremely expensive.

Features related mutual funds13

Reliance was the first fund house to launch sector funds with flexibility to invest in a range of 0% to 100% in either equity or debt instruments. Mutual fund investments linked to an ATM/debit card a Reliance innovation Indias first longshort fund comes from Reliance Mutual Fund . As at 31st May 2008, more than 6.6 million people had invested in Reliance Mutual Fund;the investments comprised 16% of the countrys entire mutual fund.

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COMPANY PROFILE OF RELIANCE

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RELIANCE INDUSTRIES LIMITEDReliance 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 also includes a development subsidiary in16

commercial real estate. Reliance's international consulting group contains several subsidiaries in energy, environment, and natural resources consulting. A financial arm invests in other businesses, primarily television stations. Reliance Insurance started as the Fire Association of Philadelphia in 1817, organized by 5 hose and 11 engine fire companies. It became the nation's first association of volunteer fire departments. Business got a boost as a result of the Great Chicago Fire of 1871.The association soon developed a field of agents to write policies across the country. For the first two years, shareholders received dividends twice a year of $5 a share, which increased gradually to $10 in 1876. In 1972, the Reliance insurance group divided its pool so that Reliance Insurance Company and its subsidiaries handled most standard lines, while United Pacific Insurance Company handled the nonstandard and other operations. In 1977, the company moved into real estate, forming Continental Cities Corporation, which became Reliance Development Group, Inc. This division handled all real estate operations of the parent company and other subsidiaries.

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Reliance Capital Group, L.P. constituted the investment branch of the Reliance conglomerate. In December 1989, Reliance Capital sold its investment, Days Corporation, parent com

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