m To have a brief idea about the benefits available from

Mutual Fund investment.

m To give an idea of the types of schemes available.
m To discuss about the market trends of Mutual Fund
investment.
m To study some of the mutual fund schemes and analyze
them.
m Observe the fund management process of mutual funds.
m Explore the recent developments in the mutual funds in
India.
m To get an idea about the regulations of mutual funds.
m The main purpose of doing this project was to know about
mutual fund and its functioning.
m This helps to know in details about mutual fund industry right
from its inception stage, growth and future prospects.
m It also helps in understanding different schemes of mutual
funds.
m The project study was done to ascertain the asset
allocation, entry load, exit load, associated with the mutual
funds.
m Ultimately this would help in understanding the benefits of
mutual funds to investors.
m The methodology of the study is constrained to only the
secondary data that is available from factsheets, website of
company and books.
m !eliance mutual fund, promoted by the Anil Dhirubhai
Ambani (ADAG) group, is one of the fastest growing mutual
funds in India having doubled its assets over the last one year.
m In March, 2006, the !eliance mutual fund emerged as the
largest private sector fund house in the country, overtaking
Prudential ICICI which has been holding that position for
many years.
m !eliance Mutual Fund (!MF) is one of India͛s leading Mutual
Funds, with Average Assets Under Management (AAUM) of
!s. 1, 11,819 Crores and an investor count of over 74 Lakh
folios.
m !eliance Capital Ltd. has interests in asset management, life
and general insurance, private equity and proprietary
investments, stock broking and other financial services.
m The origin of mutual fund industry in India is with the
introduction of the concept of mutual fund by UTI in the year
1963.
m The mutual fund industry posted a decline of 2.3 per cent
during the fiscal year ended on June 30, 2010.
m After touching the highest level of the year at !s.236 billion in
September 2009, the industry started declining from this level
and managed to close the year at !s.199 billion, thus
, demonstrating 15.8 per cent decline.
m The money market funds category showed growth of 876.5
per cent over the year.
m Open ended fund size decreased by 4.0 per cent to reach
!s.168 billion, while the closed end funds showed an increase
of 0.7 per cent to reach !s .31 billion.
m During June, the size of the Growth Funds category stood at
!s 39.2 billion, showing a surge of 2.8 per cent on M-o-M
basis.
m The annual composite rate of growth is expected 13.4%
during the rest of the decade.
m According to the current growth rate , by year 2010, mutual
fund assets will be double.






 







 

 

 





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m The performance of the !eliance Banking Fund was comparatively
much better when compared with UTI Banking Fund since 5 years
when we look in terms of returns.
m Though Canara !obeco debt fund performed well in 2008 !eliance
Banking fund stood in better position in 2009.
m Though !eliance regular savings fund growth showed a poor
performance in 2008 the performance picked up in 2009 but still it
could not perform much better than Sundaram BNP Paribas.
m Performance of !eliance MIP was not good when compared with
HDFC MIP. Because HDFC allocated 23.75 per cent of its assets in
equity whereas !eliance allocated only 17.38 per cent.
m !eliance Pharma Fund has performed well with 116.7 percent
absolute returns in 2009.
m Only !eliance AMC has allocated its funds in other options whereas
other AMCs allocated only in equity.
m !eliance has allocated 99.82 per cent of its funds in Debt and 40.58
per cent is concentrated in Top5 holdings and 60.28 per cent in
Top10 holdings for better fund performance.
m !eliance AMC has 38.50 per cent of holdings in Top5 companies
and 65.48 per cent in Top10 holdings which is very less when
compared with UTI.
m !eliance MIP has allocated 80.82 per cent of its assets in Debt and
17.38 per cent in equity when compared with other AMCs.
m Asset management companies need to proper educate the
investor to increase the awareness and break the myths
about mutual fund.
m Index Funds have delivered much less compared to actively
managed Funds. Gilt and Income Funds have performed very
well during the last three years. They perform best in a falling
interest environment. Since interest rates are now much
lower, short term Funds are preferable.
m Diversified equity has done very well while sectorial
categories have fared poorly in Indian market.
m Mutual fund distributors like !eliance Mutual Fund should
start a campaign to educate the investors: there is a need of
advertisement also to attract the investor.
m Sales force should be well educated about every aspect of
mutual fund so that they can solve the queries of the
investors.
m AMCs should target rural market as a potential hub of
customer. In rural area people are getting wealth gradually
and need a guidance to shift their portfolio from old sources
to new and modern sources.
6