A

Project Report
On
45 days summer training
“Systematic investment plan with the special reference
of Reliance mutual fund”

Submitted in partial fulfilment for the

Award of degree of
Master of Business Administration

. Submitted by

Rahul Tandon
2010-07-30
Poornima School of Management
ISI-2 RIICO Institutional Area, Goner Road, Sitapura,jaipur
 POORNIMA SCHOOL OF MANAGEMENT
(Department Of Management Studies)
(ISI – 2, Goner Road, Sitapura, Jaipur)

CERTIFICATE OF
Summer Project/Training during June – July, 2010
Certified that Mr. Rahul Tandon student of Master of Business Administration, III
Semester has submitted his report on “SYSTEMATIC INVSTMENT PLAN WITH
SPEAICL REFRENCE RELIANCE MUTUAL FUND “after successfully
completing the summer practical training at ‘GCMMF Ltd.’ from June 17th to
August 1st 2010, towards fulfilment of the syllabus requirement prescribed by
Rajasthan technical University, Kota for MBA III semester Paper.

Manoj Gupta
Director, PIET
VandanSharm
Director, PSOM
Rakesh Duggal
Director,PGI(FOM)
Amish Dugar
Director, PSBM
 Acknowledgement

Talent and capabilities are of course necessary but opportunities and right
guidance is two very important back-ups without which any person cannot climb
the ladder to success.
I would like to express my gratitude to all those who gave me the possibility to
complete this project. This project is indeed an important aspect of MBA program
and it is our great privilege to have project report on SUMMER TRAINING For
this I am very grateful to Mr. RAJAT RARA(Branch Manager of Reliance Mutual
Fund) for giving me this valuable opportunity, in the first instance and to do the
necessary research work and to use departmental data.
And I am also thankful to mentor Ambika gupta mam, without her this project
would not be successfully completed. Her help, stimulating suggestions and
encouragement helped me in all the time..

Rahul Tandon
 Table of Content

Preface
1. Executive summary
2. Industry profile
3. Company profile
4. Objective, Scope and Purpose
5. Research Methodology
6. Data & Analysis
7. Conclusion
8. Recommendations
9. Limitation
10. Bibliography
 Preface

This project on the topic of “ Systematic Investment Plan with the Special
reference of Reliance Mutual Fund” is prepared by me to fulfil the need of
submitting report as per the requirement of company.
I have got major opportunity to explore all the aspect of marketing under the topic
“Mutual fund has wider scope in the present market environment” in particular of
Mutual Fund in India. These aspects are really treasure for the researcher as well
as for the reader of the project to attain maximum knowledge about the term
marketing.
This project report contains fact relating to the sale and services of different kind
of products and there aspects.
The mutual fund is not the sale of products, but servicing customers. It is a
system, by which the money invested into the market n make a money and
Exposed to similar risks. Mutual fund is a protection against financial loss arising:
on the happening of an unexpected event. The opening up of the Mutual fund
Sector to Private Companies, has made available more products and world class
service to Indian Customer.
The objective of the project is study to find out what is Mutual fund And Reliance
Systematic Investment Plan and which are the companies involved in it and to
know what are the trends in mutual fund and invest the money.
 EXECUTIVE SUMMARY

In few years Mutual Fund has emerged as a tool for ensuring one’s financial
well being. Mutual Funds have not only contributed to the India growth story but
have also helped families tap into the success of Indian Industry. As information
and awareness is rising more and more people are enjoying the benefits of
investing in mutual funds. The main reason the number of retail mutual fund
investors remains small is that nine in ten people with incomes in India do not
know that mutual funds exist. But once people are aware of mutual fund
investment opportunities, the number who decide to invest in mutual funds
increases to as many as one in five people. The trick for converting a person
with no knowledge of mutual funds to a new Mutual Fund customer is to
understand which of the potential investors are more likely to buy mutual funds
and to use the right arguments in the sales process that customers will accept
as important and relevant to their decision.This Project gave me a great
learning experience and at the same time it gave me enough scope to
implement my analytical ability. The analysis and advice presented in this
Project Report is based on market research on the saving and investment
practices of the investors and preferences of the investors for investment in
Mutual Funds.

This Report will help to know about the investors’ Preferences in Mutual Fund
means Are they prefer any particular Asset Management Company (AMC),
Which type of Product they prefer, Which Option (Growth or Dividend) they
prefer or Which Investment Strategy they follow (Systematic Investment Plan or
One time Plan). This Project as a whole can be divided into two parts.

The first part gives an insight about Mutual Fund and its various aspects,
the Company Profile, Objectives of the study, Research Methodology. One can
have a brief knowledge about Mutual Fund and its basics through the Project.
The second part of the Project consists of data and its analysis collected
through survey.
 Industry Profile

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 also
includes 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.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 the

Reliance 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 principal activity is to produce and distribute plastic and
intermediates, polyester filament yarn, fibre intermediates, polymer intermediates,
crackers, chemicals, textiles, oil and gas. The refining segment includes
production and marketing operations of the Petroleum refinery. The
petrochemicals segment includes production and marketing operations of
petrochemical products namely, High and Low density Polyethylene.
 Company profile

Reliance Capital Asset Management Limited (RCAM)

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 is a wholly owned subsidiary of
Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) of
Reliance Capital Asset Management Limited is held by Reliance Capital Limited.
Reliance Capital Asset Management Limited 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 of
Reliance Mutual Fund. The net worth of the Asset Management Company
including preference shares as on March 31, 2005 is Rs.30.13 crores. Reliance
Mutual Fund has launched twenty five Schemes till date, namely: Reliance Vision
Fund (September 1995), Reliance Growth Fund (September 1995) Reliance
Income Fund (December 1997), Reliance Liquid Fund (March 1998), Reliance
Medium Term Fund (August 2000), Reliance Short Term Fund (December 2002),
Reliance Fixed Term Scheme (March 2003), Reliance Banking Fund (May 2003),
Reliance Gilt Securities Fund (July 2003), Reliance Monthly Income Plan
(December 2003), Reliance Diversified Power Sector Fund (March 2004)
Reliance Pharma Fund ( May 2004), Reliance Floating Rate Fund (August 2004),
Reliance Media & Entertainment Fund (September 2004), Reliance NRI Equity
Fund (October 2004), Reliance NRI Income Fund (October 2004), Reliance Index
Fund (January 2005), Reliance Equity Opportunities Fund (February 2005),
Reliance Fixed Maturity Fund - Series I (March 2005), Reliance Fixed Maturity
Fund - Series II (April 2005), Reliance Regular Saving Fund (May 2005),
Reliance Liquidity Fund (June 2005), Reliance Tax Saver (ELSS) Fund (July
2005), Reliance Fixed Tenor Fund (November 2005) and Reliance Equity Fund
(Feb 2006).

RCAM has been registered as a Portfolio Manager vide SEBI Registration No.
INP000000423 and renewed effective 1st August 2003.
RCAM has commenced these activities. It has been ensured that key personnel
of the AMC, the systems, back office, bank and securities accounts are
segregated activity wise and there exists systems to prohibit access to inside
information of various activities. As per SEBI Regulations, it will further ensure
that AMC meets the capital adequacy requirements, if any, separately for each
such activity.
RCAM has been appointed as the Investment Manager of "Reliance India Power
Fund", a Venture Capital Fund registered with SEBI vide Registration no.
IN/VCF/05-06/062 dated June 16, 2005 but this activity is yet to commence.
 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 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

MUTUAL FUNDS – AN INTRODUCTION

“…A mutual fund is a company that brings together money from many
people and invests it in stocks, bonds or other assets. The combined holdings of
stocks, bonds or other assets the fund owns are known as its portfolio. Each
investor in the fund owns shares, which represent a part of these holdings……..”
-The U.S. Securities and Exchange Commission

Mutual Fund is an investment where the investor invest the their money in the
many funds and get the units and the fund manger invest the money in share
market and provided the better return to the investor.

Reliance Systematic Investment Plan

The Systematic Investment Plan (SIP) is a simple and time honored investment
strategy for accumulation of wealth in a disciplined manner over long term period.
The plan aims at a better future for its investors as an SIP investor gets good rate
of returns compared to a one time investor.
 About Reliance Mutual Fund

Reliance Mutual Fund (RMF) has been established as a trust under the Indian
Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Sponsor and
Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee.

RMF has been registered with the Securities & Exchange Board of India (SEBI)
vide registration number MF/022/95/1 dated June 30, 1995. The name of
Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund
effective 11th. March 2004 vide SEBI's letter no. IMD/PSP/4958/2004 date 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.

The main objectives of the Trust are:

• To carry on the activity of a Mutual Fund as may be permitted at law and
formulate and devise various collective 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.
 Association of Mutual Funds in India (AMFI)
With the increase in Mutual Fund players in India, a need for Mutual Fund
Association in India was generated to function as a non-profit organization.
Association of Mutual Funds in India (AMFI) was incorporated on 22nd August,
1995.
AMFI is an apex body of all Asset Management Companies (AMC) which
has been registered with Securities Exchange Board of India (SEBI). Till date all
the AMCs are that have launched mutual fund schemes are its members. It
functions under the supervision and guidelines of its Board of Directors.
Association of Mutual Funds India has brought down the Indian Mutual
Fund Industry to a professional and healthy market with ethical lines enhancing
and maintaining standards. It follows the principle of both protecting and
promoting the interests of mutual funds as well as their unit holders.

The objectives of Association of Mutual Funds in India

The Association of Mutual Funds of India works with 30 registered AMCs of
the country. It has certain defined objectives which juxtaposes the guidelines of
its Board of Directors. The objectives are as follows:

1 � T his Mutual Fund Association of India maintains high professional and

ethical standards in all areas of operation of the industry.

2 �It also recommends and promotes the top class business practices and
code of conduct which is followed by members and related people
engaged in the activities of Mutual Fund and Asset Management. The
agencies who are by any means connected or involved in the field of
capital markets and financial services also involved in this code of conduct
of the association. �AMFI interacts with SEBI and works according to
SEBIs guidelines in the Mutual Fund industry.
 1 �Associations of Mutual Fund of India do represent the Government of
India, the Reserve Bank of India and other related bodies on matters
relating to the Mutual Fund Industry.

2 �It develops a team of well qualified and trained Agent distributors. It

implements a programme of training and certification for all intermediaries
and other engaged in the mutual fund industry.

3 �AMFI undertakes all India awareness programme for investors in order

to promote proper understanding of the concept and working of Mutual
Funds.

4 �At last but not the least Association of Mutual Fund of India also
disseminate information on Mutual Fund Industry and undertakes studies
and research either directly or in association with other bodies.

The sponsors of Association of Mutual Funds in India

Bank Sponsored

1 �SBI Fund Management Ltd.

2 �BOB Asset Management Co. Ltd.

3 �Canbank Investment Management Services Ltd.

4 �UTI Asset Management Company Pvt. Ltd.

Institutions

1 �GIC Asset Management Co. Ltd.

 2 �Jeevan Bima Sahayog Asset Management Co. Ltd.

Indian:

1 �Benchmark Asset Management Co. Pvt. Ltd.

2 �Cholamandalam Asset Management Co. Ltd.

3 �Credit Capital Asset Management Co. Ltd.

4 �Escorts Asset Management Ltd.

5 �JM Financial Mutual Fund

6 �Kotak Mahindra Asset Management Co. Ltd.

7 �Reliance Capital Asset Management Ltd.

8 �Sahara Asset Management Co. Pvt. Ltd

9 �Sundaram Asset Management Company Ltd.

10 �Tata Asset Management Private Ltd.

Predominantly India Joint Ventures:

1 �Birla Sun Life Asset Management Co. Ltd.

2 �DSP Merrill Lynch Fund Managers Limited

3 �HDFC Asset Management Company Ltd.

Predominantly Foreign Joint Ventures:

1 �ABN AMRO Asset Management (I) Ltd.

2 �Alliance Capital Asset Management (India) Pvt. Ltd.

3 �Deutsche Asset Management (India) Pvt. Ltd.

4 �Fidelity Fund Management Private Limited

5 �Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.

6 �HSBC Asset Management (India) Private Ltd.

 7 �ING Investment Management (India) Pvt. Ltd.

8 �Morgan Stanley Investment Management Pvt. Ltd.

9 �Principal Asset Management Co. Pvt. Ltd.

10 �Prudential ICICI Asset Management Co. Ltd.

11 �Standard Chartered Asset Mgmt Co. Pvt. Ltd.

Association of Mutual Funds in India Publications:

AMFI publishes mainly two types of bulletin. One is on the monthly basis
and the other is quarterly. These publications are of great support for the
investors to get intimation of the know how of their parked money. only

SEBI REGULATIONS ON MUTUAL FUNDS

The Government brought Mutual Funds in the Securities market under the
regulatory framework of the Securities and Exchange board of India (SEBI) in the
year 1993. SEBI issued guidelines in the year 1991 and comprehensive set of
regulations relating to the organization and management of Mutual Funds in
1993.

SEBI REGULATIONS 1993 (20.1.1993)

The regulations bar Mutual Funds from options trading, short selling and
carrying forward transactions in securities. The Mutual Funds have been
permitted to invest only in transferable securities in the money and capital
markets or any privately placed debentures or securities debt. Restrictions have
also been placed on them to ensure that investments under an individual
scheme, do not exceed five per cent and investment in all the schemes put
together does not exceed 10 per cent of the corpus. Investments under all the
schemes cannot exceed 15 per cent of the funds in the shares and debentures of
a single company.

SEBI grants registration to only those mutual funds that can prove an
efficient and orderly conduct of business. The track record of sponsors, a
minimum experience of five years in the relevant field of Investment, financial
services, integrity in business transactions and financial soundness are taken into
account. The regulations also prescribe the advertisement code for the marketing
schemes of Mutual Funds, the contents of the trust deed, the investment
management agreement and the scheme-wise balance sheet. Mutual Funds are
required to be formed as trusts and managed by separately formed as trusts and
managed by separately formed Asset Management Companies (AMC). The
minimum net worth of such AMC is stipulated at Rs.5 crores of which, the Mutual
Fund should have a custodian who is not associated in any way with the AMC
and registered with the SEBI.

The minimum amount raised in closed-ended scheme should be Rs.20

Crores and for the open-ended scheme, Rs.50 Crores. In case, the amount
collected falls short of the minimum prescribed, the entire amount should be
refunded not later than six weeks from the date of closure of the scheme. If this is
not done, the fund is required to pay an interest at the rate of 15 per cent per
annum from the date of expiry of six weeks. In addition to these, the Mutual
Funds are obliged to maintain books of accounts and provision for depreciation
and bad debts.

Further, the Mutual Funds are now under the obligation to publish scheme-
wise annual reports, furnish six month un-audited accounts, quarterly statements
of the movements of the net asset value and quarterly portfolio statements to the
SEBI. There is also a stipulation that the Mutual Funds should ensure adequate
disclosures to the investors. SEBI has agreed to let the Mutual Funds buy back
the units of their schemes. However, the funds cannot advertise this facility in
their prospectus. SEBI is also empowered to appoint an auditor to investigate into
the books of accounts or the affairs of the Mutual Funds.

SEBI can suspend the registration of Mutual Funds in the case of

deliberate manipulation, price rigging or deterioration of the financial position of
Mutual Funds.
SEBI REGULATIONS, 1996
SEBI announced the amended Mutual Fund Regulations on December 9,
1996 covering Registration of Mutual Funds, Constitution and Management of
Mutual funds and Operation of Trustees, Constitution and Management of Asset
Management Companies (AMCs) and custodian schemes of MFs, investment
objectives and valuation policies, general obligations, inspection and audit. The
revision has been carried out with the objective of improving investor protection,
imparting a greater degree of flexibility and promoting innovation.

The increase in the number of MFs and the types of schemes offered by
them necessitated uniform norms for valuation of investments and accounting
practices in order to enable the investors to judge their performance on a
comparable basis. The Mutual Fund Regulations is sued in December 1996
provide for a scheme-wise report and justification of performance, disclosure of
large investments which constitute a significant portion of the portfolio and
disclosure of the movements in the unit capital.
The existing Asset Management Companies are required to increase their net worth
from Rs.10 crores within one year from the date of notification of the amended
guidelines. AMCs are also allowed to do other fund-based businesses such as
providing investment management services to offshore funds, other Mutual Funds,
Venture Capital Funds and Insurance Companies. The amended guidelines retained
the former fee structure of the AMCs of 1.25% of weekly average Net Asset Value
(NAV) up to Rs.100 crores and 1% of NAV for net assets in excess of Rs.100 crores.

The consent of the investors has to be obtained for bringing about any change
in the fundamental attributes of the scheme on the basis of which the unit holders
had made initial investments. The regulation empowers the investor. The amended
guidelines require portfolio disclosure, standardization of accounting policies,
valuation norms for NAV and pricing. The regulations also sought to address the
areas of misuse of funds by introducing prohibitions and restrictions on affiliate
transactions and investment exposures to companies belonging to the group of
sponsors of mutual funds. The payment of early bird incentive for various schemes
has been allowed provided they are viewed as interest payment of early bird
incentive for early investment with full disclosure.

The various Mutual Funds are allowed to mention an indicative return for
schemes for fixed income securities. In 1998-99 the Mutual Funds Regulation were
amended to permit Mutual Funds to trade in derivatives for the purpose of hedging
and portfolio balancing. SEBI registered Mutual Funds and Fund managers are
permitted to invest in overseas markets, initially within an overall limit of US $500
million and a ceiling for an individual fund at US$ 50 million.

SEBI made (October 8, 1999) investment guidelines for MFs more stringent.
The new guidelines restrict MFs to invest no more than 10% of NAV of a scheme in
share or share related instruments of a single company. MF’s in rated debt
instruments of a single issuer is restricted to 15% of NAV of the scheme (up to 20%
with prior approval of Board of Trustees or AMC). Restrictions in un- rated debt
instruments and in shares of unlisted companies. The new norms also specify a
maximum limit of 25% of NAV for any scheme for investment in listed group
companies as against an umbrella limit of 25% of NAV of all schemes taken together
earlier. SEBI increased (June 7, 2000) the maximum investment limit for MFs in
listed companies from 5% to 10% of NAV in respect of open-ended funds. Changes
in fundamental attributes of a scheme was also allowed without the consent of three
fourths of unit holders provided the unit holders are given the exit option at NAV
without any exit load. MFs are also not to make assurance or claim that is likely to
mislead investors. They are also banned from making claims in advertisement based
on past performance.
 Systematic Investment plan(SIP)

A program that allows an investor to provide post-dated cheques to the mutual

Investment Plan (SIP) fund to allot fresh units at specified intervals (usually monthly
or quarterly). On the specified dates, the cheques are realized by the mutual fund
and additional unit satthe prevailing NAV are allotted to the investor. This enables
him to invest as little as Rs 1000 a month and take advantage of rupee cost
averaging.

The Systematic Investment Plan (SIP) is a simple and time honored

investment strategy for accumulation of wealth in a disciplined manner over long
term period. The plan aims at a better future for its investors as an SIP investor gets
good rate of returns compared to a one time investor.

What is Systematic Investment Plan

• A specific amount should be invested for a continuous period at regular

intervals under this plan.
• SIP is similar to a regular saving scheme like a recurring deposit. It is a
method of investing a fixed sum regularly in a mutual fund.
 • SIP allows the investor to buy units on a given date every month. The investor
decides the amount and also the mutual fund scheme.
• While the investor's investment remains the same, more number of units can
be bought in a declining market and less number of units in a rising market.
• The investor automatically participates in the market swings once the option
for SIP is made.

How an SIP scores

It makes you disciplined in your savings. Every month you are forced to keep aside a
fixed amount. This could either be debited directly from your account or you could
give the mutual fund post-dated cheques.

As you see above, it helps you make money over the long term. Since you get more
units when the NAV drops and fewer when it rises, the cost averages out over time.
So you tide over all the ups and downs of the market without any drastic losses.

Also, a number of mutual funds do not charge an entry load if you opt for an SIP.
This fee is a percentage of the amount you are investing. And if you do not exit (sell
your units) within a year of buying the units, you do not have to pay an exit load
(same as an entry load, except this is charged when you sell your units).

If, however, you do sell your units within a year, you would be charged an exit load.
So it pays to stay invested for the long-run.

The best way to enter a mutual fund is via an SIP. But to get the benefit of an SIP,
think of at least a three-year time frame when you won't touch your money.

Of course you would lose money if your units lost value over time.

What most SIP Mutual funds don't tell you is that they recover their fees as monthly
charges by selling your units, so while you are buying more units when the market is
down, more of your units are also being sold to fund the monthly charges of the
Mutual fund. Also the Bid and Offer of the Mutual Fund is around 7% and this is the
front load or expense you pay for buying the units each month. Also sometimes the
Mutual fund will have annual fee charges.

In spite of the above drawbacks the retail investors' benefit in the long term horizon
of 5-8 years is enormous. Only make sure that you can switch your funds from stock
market to money market at short notice when the markets are really in a correction
phase to safeguard the profits which you have made when the market was in a
booming phase.

SIP investor:-

It is easy to become a systematic investor. One needs to plan the saving effectively
and set aside some amount of money every month for investment purposes in a fund
that is ideally a diversified equity fund or balanced fund. Post dated cheques can be
given to the fund house. The investor is at liberty to exit from the scheme depending
on the market conditions.

Power of compounding:-

The power of compounding underlines the essence of making money work if only
invested at an early age. The longer one delays in investing, the greater the financial
burden to meet desired goals. Saving a small sum of money regularly at an early age
makes money work with greater power of compounding with significant impact on
wealth accumulation.

Rupee cost averaging:-

Timing the market consistency is a difficult task. Rupee cost averaging is an

automatic market timing mechanism that eliminates the need to time one's
investments. Here one need not worry about where share prices or interest are
headed as investment of a regular sum is done at regular intervals; with fewer units
being bought in a declining market and more units in a rising market. Although SIP
does not guarantee profit, it can go a long way in minimizing the effects of investing
in volatile markets.
Convenience: -

SIP can be operated by simply providing post dated cheques with the completed
enrolment form or give ECS instructions. The cheques can be banked on the
specified dates and the units credited into the investor's account. The SIP facility is
available in the Principal Income Fund, Monthly Income Plan, Child Benefit Fund,
Balanced Fund, Index Fund, Growth Fund, Equity fund and Tax Savings Fund.

SIP features:-

Disciplined investing is vital to earning good returns over a longer time frame.
Investors are saved the bother of identifying the ideal entry and exit points from
volatile markets. SIP options such as equity, debt and balanced schemes offer a
range of investment plans. While there is no entry load on SIP, investors face an exit
load if the units are redeemed within a stipulated time frame. The success of your
SIP hinges on the performance of your selected scheme.
 Systematic Investment plan +SIP Insure Plan
There is a new kind of investment vehicle introduced in the Indian Mutual Fund and
Insurance Industry. It’s a combination of SIP (Systematic Insurance Plan) and
insurance benefit. The latest offering is from Reliance Mutual Fund and is called the
Reliance SIP+Insure Plan.

But the million

dollar question
is - How good is
this SIP +
insurance plan &
should the investor
invest in such
SIP + insure plans?. In this article, let’s try to analyse this investment option called
SIP + insure.

As far as I know, there are 2 mutual fund houses who have come out with this kind of
plan – one is Reliance Mutual fund with its Reliance SIP + Insure Facility, while the
other is Birla with its Century SIP.

What’s this Reliance SIP + Insure plan all about?

This Reliance SIP + Insure plan claims to offer a combo pack of SIP investment with
so-called “FREE” insurance offered to the investor.
How does the Reliance SIP + Insure plan work?

Basically, the Reliance SIP + Insure plan works as follows: You decide to put your
money in one of the Reliance Schemes through a pre-defined SIP investment
amount. The Reliance SIP insure plan offers FREE insurance for the investor to the
maximum possible beneficiary amount of the accumulated unpaid SIP amount. So
say one decides to opt for the SIP amount of Rs. 10,000 per month and the investor
dies after 5 years. So over this 5 year or 60 months, the investor has paid a total of
600,000 Rs. to the Reliance Sip + Insure plan. Suppose that at the time of death of
the investor, the investment value has risen to 650,000. Hence, the insurance
beneficiary value will be 650,000 for the nominee of the investor. The remaining part
of the SIP installments of the deceased will be paid by the insurance company.

What are the investment schemes available for investment under the Reliance
SIP + Insure plan ?

The following schemes are available for investments under the Reliance SIP + Insure
plan:

•Reliance Growth Fund- Retail Plan

•Reliance Vision Fund - Retail Plan

Reliance Equity Opportunities Fund - Retail Plan

• Reliance Equity Fund - Retail Plan

• Reliance Equity Advantage Fund- Retail Plan

• Reliance Regular Savings Fund – Equity option

• Reliance Regular Savings Fund – Balanced option

• Reliance Banking Fund

• Reliance Pharma Fund

• Reliance Media & Entertainment Fund

• Reliance Diversified Power Sector Fund – Retail Plan

What are the minimum investment requirement and eligibility criteria for
Reliance SIP + Insure plan?

• Minimum Investment for SIP installment: Rs.2000 per month & in multiples of Re 1
thereafter. No upper limit (Why would they mind anyone giving them loads of money
to manage)
• Minimum Period of Contribution: 3 years and in multiples of 1 year thereafter.
• Maximum Period of Contribution: 15 years OR till attaining 55 years of age,
whichever is earlier (e.g., a person can register an SIP of maximum 10 yrs at the age
of 45 yrs.) The insurance cover ceases when the investor attains 55 years of age.
• Mode of payment of SIP installments is only through Direct Debit & ECS ( Post
Dated Cheques shall not be accepted). They do not want to get into the hassles of
depositing the cheques and getting it cleared.

Related Competitor Product: Birla Century SIP Plan.

Any tax benefit available with Reliance SIP + Insure plan?

No tax benefit is available with Reliance SIP + Insure Investment plan.

What are the entry load, exit load charges or load structure for Reliance SIP +
Insure plan?

Don’t expect any respite from the fund managers when it comes to load structure.

• The Entry Load under Reliance SIP Insure shall be same as applicable to normal
purchase /additional purchase transactions in the respective designated schemes. It
may be anywhere from 2% to 3% (based upon the standard load of mutual funds –
not sure though).

• There will an Exit Load of 2%, if the accumulated units acquired or allotted under
Reliance SIP Insure are redeemed or switched out to another scheme before the
maturity of SIP tenure as opted in the respective scheme either by the SIP-Insure
unit holder or by the nominee.
 What are the drawbacks and risks associated with Reliance SIP +
Insure plan?

There are many drawbacks in this Reliance SIP + Insure plan.

• The second point listed above, about the exit load is a big drawback. You will have
to pay a heavy charge of 2% if you decide to switch your money from one scheme
to another.

• The entry load may also be higher and will be charged at each of your SIP, i.e.
monthly.

• Then there is risk of mutual fund non-performance – no guarantee of any returns

• If you select a non-performing or loss making investment scheme, you will have to
pay exit load of 2% to switch to another scheme

• What appears to be a “FREE” Insurance is actually another investment.

• The Insurance cover shall commence after “waiting period” of 90 days from the
commencement of SIP instalments. Though the waiting period will not be applicable
in respect of accidental deaths. The insurance will also not be applicable if the death
is due to a pre-existing decease.

• The longer you live, the less insurance cover you get.

• Investment only through ECS and Direct Debit Facility. It may turn out many
investors who do not have bank accounts in banks without ECS or Direct debit
facility.
 RELIANCE MUTUAL FUND SCHEMES
Under The Systematic
Investment Plan(SIP)

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.
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.
Sector Specific Schemes
These 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

EQUITY/GROWTH SCHEMES

Reliance Equity Fund

(An open-ended diversified Equity Scheme.) The primary investment objective

of the scheme is to seek to generate capital appreciation & provide long-term growth
opportunities by investing in a portfolio constituted of equity & equity related
securities of top 100 companies by market capitalization & of companies which are
available in the derivatives segment from time to time and the secondary objective is
to generate consistent returns by investing in debt and money market securities.

Reliance Equity Opportunities Fund

(An Open-Ended Diversified Equity Scheme.) The primary investment objective

of the scheme is to seek to generate capital appreciation & provide long-term growth
opportunities by investing in a portfolio constituted of equity securities & equity
related securities and the secondary objective is to generate consistent returns by
investing in debt and money market securities.

Reliance Vision Fund

(An Open-ended Equity Growth Scheme.) The primary investment objective of

the Scheme is to achieve long term growth of capital by investment in equity and
equity related securities through a research based investment approach.

Reliance Growth Fund

(An Open-ended Equity Growth Scheme.) The primary investment objective of

the Scheme is to achieve long term growth of capital by investment in equity and
equity related securities through a research based investment approach.

Reliance NRI Equity Fund

 (An open-ended Diversified Equity Scheme.) The Primary investment objective
of the scheme is to generate optimal returns by investing in equity or equity related
instruments primarily drawn from the Companies in the BSE 200 Index.

Reliance Regular Savings Fund

(An Open-ended Scheme.) Equity Option: The primary investment objective of

this option is to seek capital appreciation and/or to generate consistent returns by
actively investing in Equity &Equity-related Securities

Balanced Option: The primary investment objective of this option is to

generate consistent returns and appreciation of capital by investing in mix of
securities comprising of equity, equity related instruments & fixed income
instruments.

Reliance Long Term Equity Fund

(An close-ended Diversified Equity Scheme.) The primary investment

objective of the scheme is to seek to generate long term capital appreciation &
provide long-term growth opportunities by investing in a portfolio constituted of equity
& equity related securities and Derivatives and the secondary objective is to
generate consistent returns by investing in debt and money market securities.
 CONCEPT OF MUTUAL FUNDS

A mutual fund is an investment vehicle, which allows investors with similar (one
could say mutual) investment objectives, to pool their resources and thereby achieve
economies of scale and diversification in their investing. Economies of Scale mean
lower costs on a per unit basis by doing things "in bulk" which spreads fixed costs
over greater volume. A mutual fund achieves lower per unit costs for professional
money management and for transaction charges, than small investors could achieve
on their own. This can increase return to the investor. Diversification is just another
way of saying "Don’t put all your eggs in one basket." A mutual fund allows its
investors to a small percentage of many different investments. So in a well-
diversified mutual fund no one particular investment dominates its performance.
Poor results from some investments are likely to be offset by good results from other
investments. Therefore, the unit value of a mutual fund will not fluctuate as sharply
as the value of any one of its investments. This can reduce risk to the investor.

A mutual fund is the ideal investment vehicle for today’s complex and modern
financial scenario. Markets for equity shares, bonds and other fixed income
instruments, real estate, derivatives and other assets have become mature and
information driven. Price changes in these assets are driven by global events
occurring in faraway places. A typical individual is unlikely to have the knowledge,
skills, inclination and time to keep track of events, understand their implications and
act speedily. An individual also finds it difficult to keep track of ownership of his
assets, investments, brokerage dues and bank transactions etc.
A mutual fund is the answer to all these situations. It appoints professionally qualified
and experienced staff that manages each of these functions on a full time basis. The
large pool of money collected in the fund allows it to hire such staff at a very low cost
to each investor. In effect, the mutual fund vehicle exploits economies of scale in all
three areas - research, investments and transaction processing. While the concept of
individuals coming together to invest money collectively is not new, the mutual fund
in its present form is a 20th century phenomenon. In fact, mutual funds gained
popularity only after the Second World War. Globally, there are thousands of firms
offering tens of thousands of mutual funds with different investment objectives.
Today, mutual funds collectively manage almost as much as or more money as
compared to banks.

Despite these advantages mutual funds do not guarantee do not return, nor do they
eliminate risk to investors. The return and risk of a mutual fund depend primarily on
the type of securities instruments in which it invests, and secondarily on how well it is
managed by the company offering it.

Typically a sponsor who recognizes and markets the fund initiates a mutual fund
scheme. It pre specifies the investment objective of the fund and the risks associated
with the costs involved in the process and broad rules for entry into and exit from the
fund and other areas of operation. In India as in most nations the sponsors need
approval from the regulator viz. SEBI. A sponsor then hires an asset management
company to invest the funds according to the investment objective. It also hires
another entity to the custodian of

the assets of the funds and perhaps a third one to handle registry work.
In the Indian context, the sponsors promote the Asset Management Company also,
in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in
the Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of
the Birla Sun Life Asset Management Company Ltd., which has floated different
mutual funds schemes and also acts as an asset manager for the funds collected
under the schemes.
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned
through these investments and the capital appreciations realized are shared by its
unit holders in proportion to the number of units owned by them. Thus a Mutual Fund
is the most suitable investment for the common man as it offers an opportunity to
invest in a diversified, professionally managed basket of securities at a relatively low
cost.

The small savings of all the investors are put together to increase the buying power
and hire a professional manager to invest and monitor the money. Anybody with an
invest able surplus of as little as a few thousand rupees can invest in Mutual Funds.
Each Mutual Fund scheme has a defined investment objective and strategy.
 Mutual fund Investment Flow-chart

OPTIONS AVAILABLE TO INVESTORS

Each plan of every mutual fund has three options – Growth, Dividend and dividend
reinvestment. Separate NAV are calculated for each scheme.

Dividend Option
Under the dividend plan dividend are usually declared on quarterly or annual basis.
Mutual fund reserves the right to change the frequency of dividend declared.

Dividend reinvestment option

Instead of remittances of units through payouts, Units holder may choose to invest
the entire dividend in additional units of the scheme at NAV related prices of the next
working day after the record date. No sales or entry load is levied on dividend
reinvest.

Dividend Payout option

Dividend declared by the fund manager is remitted to the investors and NAV is
reduced by that value.

Growth Option
Under this plan returns accrue to the investor in the form of capital appreciation as
reflected in the NAV. The scheme will not declare the dividend under the Growth
plan and investors who opt for this plan
will not receive any income from the scheme. Instead of income earned on their units
will remain invested within the scheme and will be reflected in the NA.

7 INVESTMENT TIPS TO IMPROVE YOUR RETURNS

1. Know your risk profile

Before you take a decision to invest in equity funds, it is important to assess your risk
tolerance. Risk tolerance depends on certain factors like emotional temperament,
attitude and investment experience. Remember, Vwhile ascertaining the risk
tolerance, it is crucial to consider one's desire to assume risk as the capacity to
assume the risk. It helps to understand different categories of overall risk tolerance,
i.e. Conservative, moderate or aggressive. While a conservative investor will accept
lower returns to minimise price volatility, a moderate investor would be all right with
greater price volatility than conservative risk tolerances to pursue higher returns. An
aggressive investor wouldn't mind large swings in the NAV’s to seek the highest
returns. Though identifying the desire for risk is a tough job, it can be made easy by
defining one's comfort zone.

2. Don't have too many schemes in your portfolio

While it is true that diversification helps in earning better returns with a lower level of
fluctuations, it becomes counterproductive when one has too many funds in the
portfolio. For example, if you have 15 funds in your portfolio, it does not necessarily
mean that your portfolio is adequately diversified. To determine the right level of
diversification, one has to consider factors like size of the portfolio, type of funds and
allocation to different asset classes. Therefore, it is possible that a portfolio having 5
schemes may be adequately diversified whereas another one with 10 schemes may
have very little diversification. Remember, to have a well-balanced equity portfolio, it
is important to have the right level of exposure to different segments of the equity
market like large cap, mid-cap and small cap. In addition, for a decent portfolio size,
it is all right to have some exposure in the sector and specialty funds.

3. Longer time horizon provides protection from volatility

As an equity fund investor, you need to understand that volatility is an integral part of
the stock market. However, if you remain focused on the long-term objectives and
follow a disciplined approach to investing, you can not only handle volatility properly
but also turn it to your advantage.
4. Understand and analyze 'Good Performance'

'Good performance' is a subjective thing. Ideally, to analyze performance, one should

consider returns as well as the risk taken to achieve those returns. Besides,
consistency in terms of performance as well as portfolio selection is another factor
that should play an important part
while analyzing the performance. Therefore, if an investment in a Mutual fund
scheme takes you past your risk tolerance while providing you decent returns; it
cannot always be termed as good performance. In fact, at times to ensure that your
investment remains within the parameters defined in the investment plan, you may to
be forced to exit from that scheme. In other words, you need to assess as to how
much risk did the fund manger subject you to, and did he give you an adequate
reward for taking that risk. Besides, you also need to consider whether own risk
profile allows you to accept the revised level of risk

5. Sell your fund, if you need to

There is no standard formula to determine the right time to sell an investment in

Mutual fund or for that matter any investment. However, you can definitely benefit by
following certain guidelines while deciding to sell an investment in a Mutual fund
scheme. Here are some of them:
You may consider selling a fund when your investment plan calls for a sale rather
than doing so for emotional reasons. You need to hold a fund long enough to
evaluate its performance over
a complete market cycle, i.e. around three years or so. Many of us make the mistake
of either holding on to funds for too long or exit in a hurry. It is important to do a
thorough analysis before taking a decision to sell. In other words, if you take a wrong
decision, there is always a risk of missing out on good rallies in the market or getting
out too early thus missing out on
potential gains. You should consider coming out of a fund if its performance has
consistently lagged its peers for a period of one year or so. It doesn't make sense to
hold a fund when it no longer meets your needs. If you have made a proper
selection, you would generally be required
to make changes only if the fund changes its objective or investment style, or if your
needs change.

6. Diversified vs. Concentrated Portfolio

The choice between funds that have a diversified and a concentrated portfolio largely
depends upon your risk profile. As discussed earlier, a well - diversified portfolio
helps in spreading the investments across different sectors and segments of the
market. The idea is that if one or more stocks do badly, the portfolio won't be affected
as much. At the same time, if one stock does very well, the portfolio won't reap all the
benefits. A diversified fund, therefore, is an ideal choice for someone who is looking
for steady returns over the longer term. A concentrated portfolio works exactly in the
opposite manner. While a fund with a concentrated portfolio has a better chance of
providing higher returns, it also increases your chances of underperforming or losing
a large portion of your portfolio in a market downturn. Thus, a concentrated portfolio
is ideally suited for those investors who have the capacity to shoulder higher risk in
order to improve the chances of getting better returns.

7. Review your portfolio periodically

It is always a good idea to review your portfolio periodically. For example, you may
begin reviewing your portfolio on a half-yearly basis. Besides, you may be required to
review your portfolio in greater detail when your investments goals or financial
circumstances change.

ADVANTAGES OF MUTUAL FUNDS

• Professional Management
The major advantage of investing in a mutual fund is that you get a
professional money manager to manage your investments for a small fee. You
can leave the investment decisions to him and only have to monitor the
performance of the fund at regular intervals.

• Diversification
Considered the essential tool in risk management, mutual funds make it
possible for even small investors to diversify their portfolio. A mutual fund can
effectively diversify its portfolio because of the large corpus. However, a small
investor cannot have a well-diversified portfolio because it calls for large
 investment. For example, a modest portfolio of 10 bluechip stocks calls for a
few a few thousands.

• Convenient Administration
Mutual funds offer tailor-made solutions like systematic investment plans and
systematic withdrawal plans to investors, which is very convenient to
investors. Investors also do not have to worry about investment decisions,
they do not have to deal with brokerage or depository, etc. for buying or
selling of securities. Mutual funds also offer specialized schemes like
retirement plans, children’s plans, industry specific schemes, etc. to suit
personal preference of investors. These schemes also help small investors
with asset allocation of their corpus. It also saves a lot of paper work.
• Costs Effectiveness
A small investor will find that the mutual fund route is a cost-effective method
(the AMC fee is normally 2.5%) and it also saves a lot of transaction cost as
mutual funds get concession from brokerages. Also, the investor gets the
service of a financial professional for a very small fee. If he were to seek a
financial advisor's help directly, he will end up paying significantly more for
investment advice. Also, he will need to have a sizeable corpus to offer for
investment management to be eligible for an investment adviser’s services.
• Liquidity
You can liquidate your investments within 3 to 5 working days (mutual funds
dispatch redemption cheques speedily and also offer direct credit facility into
your bank account i.e. Electronic Clearing Services).
• Transparency
Mutual funds offer daily NAVs of schemes, which help you to monitor your
investments on a regular basis. They also send quarterly newsletters, which
give details of the portfolio, performance of schemes against various
benchmarks, etc. They are also well regulated and Sebi monitors their actions
closely.
• Tax benefits
 You do not have to pay any taxes on dividends issued by mutual funds. You
also have the advantage of capital gains taxation. Tax-saving schemes and
pension schemes give you the added advantage of benefits under section 88.
• Affordability
Mutual funds allow you to invest small sums. For instance, if you want to buy a
portfolio of blue chips of modest size, you should at least have a few lakhs of
rupees. A mutual fund gives you the same portfolio for meager investment of
Rs.1,000-5,000. A mutual fund can do that because it collects money from
many people and it has a large corpus.
 DISADVANTAGES OF MUTUAL FUNDS:

• Professional Management-
Did you notice how we qualified the advantage of professional
management with the word "theoretically"? Many investors debate over
whether or not the so-called professionals are any better than you or I at
picking stocks. Management is by no means infallible, and, even if the fund
loses money, the manager still takes his/her cut. We'll talk about this in detail
in a later section.
• Costs –
Mutual funds don't exist solely to make your life easier--all funds are in
it for a profit. The Mutual fund industry is masterful at burying costs under
layers of jargon. These costs are so complicated that in this tutorial we have
devoted an entire section to the subject.
• Dilution –
It's possible to have too much diversification (this is explained in our
article entitled "Are You Over-Diversified?"). Because funds have small
holdings in so many different companies, high returns from a few investments
often don't make much difference on the overall return. Dilution is also the
result of a successful fund getting too big. When money pours into funds that
have had strong success, the manager often has trouble finding a good
investment for all the new money.

• Taxes –
When making decisions about your money, fund managers don't
consider your personal tax situation. For example, when a fund manager sells
 a security, a capital-gain tax is triggered, which affects how profitable the
individual is from the sale. It might have been more advantageous for the
individual to defer the capital gains liability.Equity funds, if selected in the right
manner and in the right proportion, have the ability to play an important role in
achieving most long-term objectives of investors in different segments.

TYPE OF RESEARCH:

Personal interview approach was adopted for the project. In this type of research, the
researcher has to contact the person directly to know the available information and
analyze these to make a critical evaluation. The facts or information required to
analyze the data was available in interviewer’s statements. This was one of the main
sources for the project.
The other approach was PERSONNEL RESEARCH. It is based on the personal
knowledge. It is applicable to phenomenon that can be expressed in terms of words.

RESEARCH PROCESS:
Research Process consists of a series of action or steps necessary to effectively
carry out the research and the desired sequencing of these steps. The various steps,
which provided guidelines to the research process pertaining to the project, are as
follows:
Formulating the research problem
Formulation of research problem involves understanding the problem thoroughly and
rephrasing the same into meaningful terms from an analytical point of view.
Extensive literature survey
It is necessary for the researcher to conduct an extensive survey connected with the
problem. For the purpose manual, company records, journals, published data can be
used.
Development of working hypotheses
Working hypotheses is a tentative assumption made in order to draw out and rest its
logical or empirical consequences.
Preparing the research design
The researcher will be required to prepare a research i.e. he will have to state the
conceptual structure within which research would be conducted. The function of
research design is to provide the collection of relevant evidence with minimum
expenditure of efforts, time and money.

Determining the sample design

The researcher must decide a way of selecting a sample or what is popularly known
as sample design. The types of sample design are:
Simple Sampling
Random sampling
Systematic Random Sampling
Stratified Sampling
Quota Sampling
Cluster and Area sampling
Multistage Sampling
Sequential Sampling

Collection of data
While deciding the methods of data collection to be used for study the researcher
should keep in mind two types of data viz.

Primary Data:
The Primary data are those, which are collected afresh and for the first time and thus
happen to be original in character.

Secondary Data:
Secondary data means data that are already available i.e. they refer to the data
which have already been collected and segregated by someone else. The
researcher has to determine the various sources of obtaining secondary data.
Secondary data may be published or unpublished in nature.
Published data are available in:
Publications of central, state and local newspapers
Publication of foreign government or of international bodies
Technical or trade journals
Books, magazines and newspapers and Internet
Public record and statistics, historical documents and sources of public information.
Data CollectionData used for the project was the secondary and primary data.

Analysis of data
Analysis of data can of two types:

Quantitative analysis
Qualitative analysis
Thus analysis of data require a number of closely related operations such as
establishment of categories, the application of these categories into raw data through
tabulation, chart and then draw inferences. Analysis work is generally based on the
computation of various percentage, co-efficient etc. by applying various statistical
formulae.

Preparation of Reports
After analysis, the next step is in the preparation of the report. The report has been
prepared according to the report writing principles.
The Objective, clarity in presentation of ideas and the uses of charts have been
maintained throughout the report.
Once the data has been collected, the researcher has to process, analyze and
interpret the same. It was emphasized that the researcher should exercise good care
to ensure that reliable data are not properly processed and analyzed. Sufficient
attention is often not given to these aspects, with the result that the quality of the
report suffers.
Editing -The first task in data is editing. It is the process by which data are prepared
for subsequent coding. As it is very subjective process, editing is the process of
examining errors and omission in the collected data and making necessary in the
same this is desirable when there is more inconsistency in the responses.
Coding - coding is the procedure of classifying the answers to a question in
meaningful categories the symbol used to indicate the categories are called codes.
Coding is necessary to carry out the subsequent operation of tabulation and
analyzing data.
Coding involves two steps:
The first is to specify the different categories or classes into which the responses are
classified. The second step is to allocate individual answers to different categories.
Tabulation - tabulation comprises of sorting of data into different categories and
counting the number of cases that belongs to each categories.
One is unvaried tabulation. This includes the numbers of responses to one question
or to count. It’s very simplest way to tabulate where two or more variables are
involved in tabulation. It is called bivariate or multivariate tabulation. In marketing
research project, generally both type of tabulation is used.
Analysis and interpretation: - analysis and interpretation are the central steps in the
research process. The goal of analysis is to summaries the collected data in such a
way that they provide answer to questions that triggered while research.
Interpretation is the research for border, meaning of research finding.
 DATA ANALYSIS AND INTERPRETATION

Q.1 Which banking mutual fund do you prefer for mutual

Fund ?

Co mpany Name Persentages of respondents

Reliance Money 25
HDFC 10
ICICI 15

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

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

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

ICICI 16

INTERPRETATION:
36% respondent for Reliance,32%forHdfc,32% for ICICI
Q.5 Which banking mutual fund offer 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
 Represent by pie chart

ICICI
29%
Reliance
41%

HDFC
30%

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.

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 .
• 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.
• The expectations of the customers are regularly increasing because of the
increasing competition and emergence of global market.
• In such conditions it becomes very necessary for a company to fulfill all the
expectations of the customers and give them a delightful experience.
• Though reliance money is working very hard in order to do so but there is a
gap between the expectations and the experiences of the customers which is
widening regularly.
• This gap has emerged because of the sales oriented focus of reliance money.
• In order to increase the sales figures, the company has somewhere ignored
the service delivery and left the customer on his own. In order to fill this gap,
company needs to customize its services as it is dealing into financial
instruments.
• These financial instruments are risky and it is very essential to make the
customer feel that you are taking care of his money.
• This can be done only if all the services are customized and the system is
made transparent for the customer as well as for the employees.
 Limitations
• The time constraint was one of the major problems.

• people are reluctant towards giving response and take it as a waste of time.
• Taking appointments was very tough as people were not ready to give their
time for a survey.
• Cold callings were not entertained everywhere and thus we were not able to
meet all the classification of customers.
• Because of the temporary fluctuations in the market it was a tough time talking
to the people regarding investments.
• People were reluctant towards the products of reliance because of a general
perception that reliance always comes with low price but always has hidden
charges.
• Language was a hurdle while talking to many of the local people.
• Though these limitations were there but because of the support of the people I
have surveyed and the experience I have gained while preparing for the
survey presentations of my college, I was able to complete the survey and
prepare my project report much before the deadline.
 RECOMMENDATIONS AND SUGGESTIONS
After analyzing all the expectations of the customers and the experience they
basically get while using the product we can a gap between the expectations and the
experience. This gap needs to be filled before it starts bringing in some adverse
consequences. To fill this gap I have come up with some recommendations and
suggestions which can help the company satisfy their customers better. These
suggestions are listed below:-

1) Though reliance money is having a very good and well trained sales staff
which is able to bring in customers but it is very necessary to build relationship
with the customers to keep them retained. Company should train its
employees regarding relationship management so that the products can be
personalized according to the needs of the customers.
2) Most of the customers trade via the online platform of the company and not
from the office therefore company should start a system of filling up of
feedbacks and complaints online so that rectification of errors can be done
easily.
3) Many of the customers are not in touch of company but actually deal with
franchisees and remissers. These are untrained people and are unaware of
the importance of relationship. Company should start a kind of soft skill
training program for all of its distributors so that the customers feel the same
level of satisfaction as they feel while transacting with the company.
4) As seen in the qualitative analysis, many people don’t trade or invest because
they don’t have any knowledge regarding the market. Company should start a
free of cost training program for these kinds of customers.
5) Though the sales staff is very effective but reliance money is lacking behind in
operational effectiveness. Company should take a note on this.
6) Motivational programs should be conducted in order to increase the efficiency
of the customers.
 BIBLIOGRAPHY

NEWS PAPER
Business Standard
Economic Times
Green Line

Magazines
Dalal Street
Capital Market

Websites:-
WWW.SBIMF.COM

www.google.com

WWW.MONEYCONTROL.COM

WWW.AMFIINDIA.COM

WWW.ONLINERESEARCHONLINE.COM

WWW.RELIANCEMUTUAL.COM