CONTENTS

1. 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.BIBLIOGRAPHY

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

INTRODUCTION

INTRODUCTION

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.

HISTORY

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.]

Types of Mutual Funds Scheme in India

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 o o

Open - Ended Schemes Close - Ended Schemes Interval Schemes Growth Schemes Income Schemes Balanced Schemes Money Market Schemes Tax Saving Schemes Special Schemes

By Investment Objective
o o o o

Other Schemes
o o

Index Schemes Sector Specfic

ADVANTAGES OF MUTUAL FUNDS

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 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 funds

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 long-short fund comes from Reliance Mutual Fund .

As at 31st May 2012, more than 6.6 million people had invested in Reliance Mutual Fund the investments comprised 16% of the countrys entire mutual fund.

COMPANY PROFILE OF RELIANCE

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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) and an investor base of over6.6 million (Source:www.amfiindia.com).Reliances mutual fund schemes are managed by Reliance Capital Asset Management Limited RCAM), 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-wide AUM 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.

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 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.

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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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PRODUCT S : RELIANCE MONEY The products on offer from Reliance Mutual Fund fall into four main categories: equity, debt, sector specific and ETF (Exchange Traded Fund).Each taps into a specific audience profile fulfilling their varying needs. Under the equity category, Reliance has118 SUPERBRANDS sixteen schemes with Reliance Growth Fund and Reliance Vision Fund as its flagship schemes .Reliance Equity Opportunities Fund is a scheme which operates in the multi-cap/multi-sector segment; Reliance Equity Fund is a long-short fund, Reliance Quant Plus Fund is a quant fund. Reliance offers investments in banking, power ,media, entertainment and pharmaceuticals ;Reliance Tax Saver Fund and Reliance Equity-Linked Savings Fund Series 1 are tax saving schemes; an NRI-dedicated equity scheme is tailored for non-resident Indians. Reliance Regular Savings Fund is an asset-allocation fund with three options. Under the debt and liquid categories, Reliance has liquid funds, liquid plus funds, income funds, an NRI-dedicated debt fund, gilt funds, fixed maturity plans and an interval fund. In the hybrid category, Reliance Monthly income Plan is a popular option Reliance understands that investments in mutual fund share a function of knowledge dissemination and awareness of products amongst potential investors. In building its own base of assets under management it will necessarily have to carry the entire mutual fund industry. Towards this end Reliance has launched a two-pronged initiative .In the first pincer it has created a formidable network of 26,000 distributors including some of the biggest names in the banking sector. This whos who of the financial industry comprises such giants as Citibank, Standard Chartered, HSBC,ICICI, AXIS, Bank of Baroda, Central Bank of India, Allahabad Bank and fund houses such as JM, DSP Merrill Lynch and Karvy in addition to a massive infrastructure of direct financial investment officers.

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COMPARATIVE STUDY OF MUTUAL FUND Major competitior 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 particpant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

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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 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 demat 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 (https://speed-e.nsdl.com). 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 ICICIDirect (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 ICICIDirect offers 3 different online trading platforms to its customers 1. Investment Account Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also provide options to invest in Mutual Funds and Bonds 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 facility to invest in Government of India Bonds and ICICI Bank Tax Saving 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 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 (Reliance Growth Fund and Reliance Equity 17 Bonds. ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs,

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 lump sum 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 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 To give an idea of the types of schemes available. Explore the recent developments in the mutual funds in To give an idea about the regulations of mutual funds. To analyze reliance mutual fund strategy against its competitor. India mutual Fund investment.

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RESEARCH METHODOLOGY

Research as a care full investigation or enquiry specially through search for a 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

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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.

METHODS OF DATA COLLECTION In this project work primary and secondary data sources of data has been 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

Q.1 Which banking mutual fund do you prefer for mutual Fund ? Co mpany Name Reliance Money HDFC ICICI Persentages of respondents 25 10 15

25 20 15 10 5 0 Reliance HDFC ICICI

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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 Reliance HDFC ICICI Percentage of respondent 22 21 7

25 20 15 10 5 0

RELIANCE

HDFC

ICICI

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INTERPRETATION: 44% respondent for Reliance,32 %forHdfc,14% for ICICI

Q.3 Which banking mutul fund offer a lot of tax saving? Company Name Reliance HDFC ICICI Percentage of respondent 20 15 15

20 15 10 5 0

Reliance

HDFC

ICICI

INTERPRETATION: 40% respondent for Reliance,30 %forHdfc,30% for ICICI

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Q.4 Which banking mutual fund offer you a large number of product & services? Company Name Reliance HDFC ICICI Percentage of respondent 18 16 16

18 17.5 17 16.5 16 15.5 15 Reliance HDFC ICICI

INTERPRETATION: 36% respondent for Reliance,32%forHdfc,32% for ICICI

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Q.5 Which banking mutual fund offer you a good e-mail facility ? Company Name Reliance HDFC ICICI Percentage of respondent 22 15 13

25 20 15 10 5 0 Reliance HDFC ICICI

INTERPRETATION: 44% respondent for Reliance,30%forHdfc,26% for ICICI

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Represent by pie chart

ICICI 29%

Reliance 41%

HDFC 30%

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OBSERVATION 50% of respondent have Reliance Money , 30% of respondent says that other%.

44% respondent for Reliance,32 %forHdfc,14% for ICICI.

40% respondent for Reliance,30 %forHdfc,30% for ICICI. 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 and Reliance growth Fund . Both 28

schemes are open ended but Reliance Growth fund is more valuable for Reliance Mutual Fund than reliance vision Fund. In Dedt scheme we have taken Reliance money Manager Fund and Reliance Liquidty Fund .In it boths schemes are open ended but reliance money manager is more beneficial for reliance mutual fund .

In sector specific scheme we have taken Reliance media and entertainment fund and Reliance Pharma fund scheme both is more efficient for Reliance Mutual Fund.

Above all the schemes of Reliance Mutual Fund Debt schemes are best schemes for Mutual Fund . There is a Good investment plan and saving scheme in reliance Mutual Fund.

SUGGESTION Reliance Money have to add some extra features in it with aggressive marketing promotional strategy. Advertisement on television is the main source of attraction so the company must advertise its products heavily.

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

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 more aware and conscious for the brand so they go for they are ready to spend some extra bucks for the quality .

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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.

Limitations The time constraint was one of the major problems.

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 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.

BIBLIOGRAPHY Websites:

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www.reliancemoney.com www.hdfc.com www.icicidirect.com Referencebooks: FINANCIAL INSTITUTIONS AND MARKETS - L.M.BHOLE INVESTMENT MANAGEMENT - V.K.BHALLA Research Methodology - Kothari

QUESTIONNAIR Name : Age :

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Address: Pin : Sex : M Phone : 1. Do you invest in mutual fund? Yes 2.What is your age? 15.25 35-45 25-35 above 45 . No . F

3. What is your income? (Yearly based) 1 lakh 4-5 lakh 2 - 4lakh more than 5

4. From where you come to know about this companys mutual fund schemes? Family members & relatives Friends & peers

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Companyemplooyes

Others Please specify 5. What is the time duration of your investment? 0-1 year 2-4year 1-2 year more than 4 . .

6. Which banking mutual fund do you prefer for mutual Fund ? Reliance Money HDFC ICICI

7. Which banking mutual fund offer you good investment plan? Reliance Money HDFC ICICI

8. Which banking mutul fund offer a lot of tax saving? Reliance Money HDFC ICICI

9. Which banking mutual fund offer you a large number of product & services?

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Reliance Money HDFC ICICI

10. Which banking mutual fund offer you a good e-mail facility ? Reliance Money HDFC ICICI

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