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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.]

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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.

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Types of MutualFunds 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 Open - Ended Schemes

o Close - Ended Schemes

o Interval Schemes

 By Investment Objective
o Growth Schemes

o Income Schemes

o Balanced Schemes

o Money Market Schemes

 Other Schemes
o Tax Saving Schemes

o Special Schemes

 Index Schemes

 Sector Specfic

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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

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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.

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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 India’s first long-short fund
comes from Reliance Mutual Fund .

 As at 31st May 2008, more than 6.6 million people


had invested in Reliance Mutual Fund;the investments
comprised 16% of the country’s entire mutual fund.

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COMPANY PROFILE OF RELIANCE

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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,

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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.

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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.

"Growth has no limit at Reliance. I keep revising my


vision.
Only when you can dream it, you can do it."

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Dhirubhai Ambani founded Reliance as a textile company and
led its evolution as a global leader in the materials and energy
value chain businesses.
He is credited to have brought about the equity cult in India in
the late seventies and is regarded as an icon for enterprise in
India. He epitomized the spirit 'dare to dream and learn to
excel'.
The Reliance Group is a living testimony to his indomitable
will, single-minded dedication and an unrelenting
commitment to his goals.

RELIANCE MUTUAL FUND

This groupdominates this key areain the financial


sector..This megabusiness houses show that it has assetsunder
management ofRs. 90,938 crore(US$ 22.73 billion) andan
investor base of over6.6 million
(Source:www.amfiindia.com).Reliance’s mutual fundschemes
are managed byReliance Capital AssetManagement
LimitedRCAM), a subsidiary of
Reliance Capital Limited,which holds 93.37% ofthe paid-up
capitalof RCAM.
The company notchedup a healthy growth
ofRs. 16,354 crore(US$ 4.09 billion)in assets under
management in February2008 and helped propelthe total
industry-wideAUM to Rs. 565,459 crore (US$ 141.36
billion)(Source: indiainvestments.com). A sharp rise infixed
maturity plans (FMPs) and collection ofRs. 7000 crore (US$
1.75 billion) through newfund offers (NFOs) created this
surge. In AUrankings, Reliance continues to be in thenumber
one spot.

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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.

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.

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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.

Schemes

To make their packages more attractive, Reliance Mutual


Fund created proposals called The Equity/ Growth scheme,
Debt/Income Scheme, and Sector Specific Scheme.

i. Debt/Income Scheme, and Sector Specific


Scheme.

The Equity/ Growth scheme give medium to long


term capital increase. The major part of the investment is
on equities and they have fairly high risks. The scheme
gives the investors varying options like, capital
augmentation or dividend preference. The choices are not
deadlocked because if you want you may change the
options later on.

Providing steady and regular income is one of the


Debt/Income Scheme's primary goals. The Debt/Income
scheme has in its portfolio government securities,
corporate debentures fixed income securities, and bonds.
returns on Sector Specific Scheme are dependent on the
performance of the industry at which your money is
invested upon. Compared to diversified funds this is a lot
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more risky and you will need to really give your time on
observing the market.

Although RMF is gaining good ground in the


financial market, remember that they are a risk taking
bunch. They give higher profit because they take a lot of
risks. So, if you are faint hearted, then Reliance Mutual
Fund is not for you.

GROWTH OF RELIANCE MONEY THROUGH


RECOGNITION

Growth through Recognition


Reliance has merited a series of awards and recognitions for
excellence for businesses and operations.

Corporate Ranking and Ratings:

Reliance featured in the Fortune Global 500 list of ‘World’s


Largest Corporations’ for the fourth consecutive year.
 Ranked 269th in 2007 having moved up 73 places from
the previous year.

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 Featured as one of the world’s Top 200 companies in
terms of Profits.
 Among the top 25 climbers for two years in a row.
 Featured among top 50 companies with the biggest
increase in Revenues.
 Ranked 26th within the refining industry.
Reliance is ranked 182nd in the FT Global 500 (up from
previous year’s 284th rank).
 PetroFed, an apex hydrocarbon industry association,
conferred the PetroFed 2007 awards in the categories of
“Refinery of the Year” and “Exploration & Production -
Company of the Year”.
 Brand Reliance was conferred the “Bronze Award” at
The Buzziest Brands Awards 2008, organized by
agencyfaqs!
 Institute of Economic Studies conferred the “Udyog
Ratna” award in October 2007 for contributions to the
industry.
 Chemtech Foundation conferred the “Hall of Fame” in
February 2008 for sterling contributions to the industry.
 Chemtech Foundation conferred the “Outstanding
Achievement - Oil Refining” for work at the Jamnagar
Manufacturing Division.
Petroleum Federation of India conferred the “Refinery of the
Year Award - 2007” to Jamnagar Manufacturing Division

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 “The Plastics Export Promotion Council -
PLEXCOUNCIL Export Award” in the category of
Plastic Polymers for the year 2006-2007 was awarded to
Reliance being the largest exporter in this category.

HEALTH:-

 Jamnagar Manufacturing Division was conferred the


“Golden Peacock Award for Occupational Health &
Safety - 2007” by Institute of Directors.
 Jamnagar Manufacturing Division was conferred the
“ICC Award for Water Resource Management in
Chemical Industry”.
 Jamnagar Manufacturing Division was conferred the
“Good House Keeping Award” from Baroda Productivity
Council.
 Jamnagar Manufacturing Division was conferred the
“BEL-IND” Award for the best scientific paper at the
58th National Conference of Occupational Health.
 Naroda Manufacturing Division was conferred the
“Safety Award and Certificate of Appreciation”
presented by Gujarat Safety Council & Directorate of
Industrial Safety & Health, Gujarat State for the
recognition of safety performance at the 29th State Level
Annual Safety Conference.
 Dahej Manufacturing Division received “BSC 5-Star”
rating from British Safety Council, UK.

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 Dhenkanal Manufacturing Division received the “2nd
Prize for Longest Accident Free Period” from the
Hon’ble Minister of Labour, State of Orissa.
 Hoshiarpur Manufacturing Division bagged the First
Prize in “Safety in Punjab”, organized by Punjab Safety
Council.
 Patalganga Manufacturing Division won the “Gold
Medal at CASHe (Change Agents for Safety, Health and
Environment) Conference”. It also won the III Prize in
Process Management category for Presentation on Safety
through Design in chemical process industry in Petrosafe
2007 Conference.
 Kurkumbh Manufacturing Division won the “Greentech
Safety Award silver trophy” for outstanding achievement
in safety management in chemical sector.
 Hazira Manufacturing Division received the “TERI
Corporate Environmental Award (Certificate of
Appreciation)” for PET recycling project.

Nagothane Manufacturing Division received the “Shrishti


G-Cube Award for Good Green Governance” from
Minister for Commerce and Industry, on World Earth Day.

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Training and Development:-

 Jamnagar Refinery was adjudged the winner of the


“Golden Peacock National Training Award -2007”.
 Patalganga Manufacturing Division won the “ASTD
(American Society for Training & Development)
Excellence in Practice Award” for innovative practice
titled Learning Function’s role as Business partner:
Empowering people with Knowledge to achieve
Business Goals.
Reliance won the CNBC TV-18 instituted Jobstreet.com
Jobseekers’ Employer of Choice Award.

Energy Excellence:-

 Exploration & Production (E&P) Division won “The


Infraline Energy Excellence Awards 2007: Hydrocarbon
Columbus Award for Excellence in Petroleum
Exploration”.
 Patalganga Manufacturing Division won the First Prize
in “Energy Conservation in State of Maharashtra”
organized by Maharashtra Energy Development Agency
(MEDA).
 Jamnagar Manufacturing Division won the “Oil & Gas
Conservation Award -2007” from the Centre for High
Technology, Ministry of Power & Natural Gas for the
excellent performance in reduction/elimination of steam
leaks in the plant.

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 Jamnagar Manufacturing Division was the recipient of
the “Infraline Energy Award-2007” by Ministry of
Power.
 Hazira Manufacturing Division won the Government of
India Energy Conservation Award (2007) conferred by
the Bureau of energy efficiency and Ministry of Power.
 Hazira Manufacturing Division was adjudged “Excellent
Energy Efficient Unit” at Energy Summit - 2007 by CII.
Vadodara Manufacturing Division received the CII award
for “Excellence in Energy Management - 2007” as energy
efficient unit. This division also received the 2nd prize in
“National Energy Conservation Award –2007” from
Bureau of Energy efficiency, Ministry of Power,
Government of India.
The Company’s manufacturing divisions at Vadodara and
Hazira were honoured with CII-National award for
excellence in water management - 2007 as water efficient
unit in “Within the fence” category. Additionally, Hazira
Manufacturing Division was honoured as water efficient
unit “Beyond the Fence” category.

Quality:-

 For the first time ever, globally, a petrochemical


company bagged the “Deming Prize for Management
Quality”. “The Quality Control Award for Operations
Business Unit 2007” was awarded to the Hazira

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Manufacturing Division for Outstanding Performance by
Practicing Total Quality Management.
 “QUALTECH PRIZE 2007”, which recognizes
extraordinary results in improvement and innovation,
was won by Hazira Manufacturing Division for its Small
Group Activity Project.
 Vadodara Manufacturing Division’s Polypropylene-IV
(PP-IV) plant was conferred the “Spheripol Process
Operability Award-2006” for the highest operability rate
with an on stream factor 98.97% by M/s. BASELL, Italy.
Allahabad Manufacturing Division won the “Excellent
Category Award” at National Convention of Quality Circle
(NCQC) - 07.

Six-Sigma:-

 Lean Six sigma project on “Reducing retention time of


caustic soda lye tankers at Jamnagar” won the 1st prize
in the national level competition held by Indian
Statistical Institute (ISI).
 Patalganga Manufacturing Division’s Six Sigma Project
on Improve Transfer Efficiency for Automatic winders in
PFY won the 2nd Prize for “Best design for Six Sigma
Project in International Six Sigma Competition”
organized by IQPC (International Quality and
Productivity center).
 Barabanki Manufacturing Division won the 3rd prize in
“All India Six Sigma case study contest 2008” for the

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Case study on “Reduction of waste of Plant 2 from 16%
to 8%”.
 Hoshiarpur Manufacturing Division won the 2nd prize in
“Six Sigma competition at National Level” organized by
ISI and Quality Council of India (in manufacturing
category), while Dhenkanal and Barabanki
Manufacturing Divisions won the 3rd prize.
Vadodara Manufacturing Division’s Six Sigma project won
the 1st prize as the “Best Six Sigma project” at National
level by CII.

Technology, R&D and Innovation:-

 Vadodra Manufacturing Division’s R&D bagged an


award from Indian Institute of Chemical Engineers for
Excellence in Process / Product Development for the
work on “Eco friendly Process for Acetonitrile
Recovery”.
 “DSIR National Award for R&D Efforts in Industry
(2007)” was conferred on Hazira Manufacturing Division
for the Cyclehexane Recovery Project.
 Patalganga Manufacturing Division’s Project titled
Augmentation of ETP and use of biogas in Fired heaters
won the “Best Innovative Project” from CII.
 Reliance bagged the “Innovation Award at Tech
Converge 2007” for innovative developments in short-
cut fibres.

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Hazira Manufacturing Division won the “Golden Peacock
Innovation Award - 2007” for its Cyclohexane Recovery
Process.

Information Technology:-

 “CIO of the Year Award” for the best IT-enabled


organization in India for the Year 2007.
 “Ones to Watch - CIO - USA Award”, for figuring
among the top 20 organizations fostering excellence in
IT team.
 “The Skoch Challenger Award” conferred for the best IT
Head (managing the most IT enabled organization) of the
Year 2007.
 “Best IT Implementation Award”, by PC Quest for
Knowledge Management Systems portal (KMS).
 “CIO Excellence Award” for Chemical Industry
Information Technology Forum for exemplary
Information Technology implementation amongst global
chemical companies.
“CTO Forum Hall of Fame Award” for the best CIOs in
India for not only providing service to their

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PRODUCT S : RELIANCE MONEY

The products on offer from Reliance MutualFund 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 Fundand Reliance Vision Fund as its
flagship schemes.Reliance Equity Opportunities Fund is a
schemewhich operates in the multi-cap/multi-sectorsegment;
Reliance Equity Fund is a long-shortfund, 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. RelianceRegular Savings
Fund is an asset-allocation fund with three options.Under the
debt and liquid categories, Reliancehas liquid funds, liquid
plus funds, income funds,an NRI-dedicated debt fund, gilt
funds, fixedmaturity plans and an interval fund.In the hybrid
category, Reliance Monthlyincome Plan is a popular option

Reliance understands that investments in mutual


fundshare a function of knowledge dissemination and
awareness of products amongst potential investors. In building
its ownbase of assets under management it will necessarily
have to carry the entire mutual fund
industry.Towards this end Reliance has launched a t wo-
pronged initiative.In the first pincer it has created aformidable
network of 26,000 distributors including some of thebiggest
names in the banking sector.This who’s who of the financial
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industry comprises such giants asCitibank, Standard
Chartered, HSBC,ICICI, AXIS, Bank of Baroda, Central
Bank of India, Allahabad Bank andfund houses such as JM,
DSP Merrill Lynch and Karvy in addition to a massive
infrastructure of direct financial investment officers.
Thisprodigious effort is supplemented by thebrands’ captive
network of 120 branch offices
and 30 financial centres. In the second prong, Reliance has
created a series of informationpacked presentations which
help dispel misinformationGroup.This mega business house
dominates this key area in the financial sector.Figures for
March 2008 show that it has emerged as the top Indian mutual
fund with average assets under management of Rs. 90,938
crore (US$ 22.73 billion) and an investor base of over 6.6
million (Source:www.amfiindia.com).
Reliance’s mutual fund schemes are
managed by RelianceCapitalAssetManagementLimited
(RCAM), a subsidiary of Reliance Capital Limited,which
holds 93.37% of the paid-up capitalof RCAM.The company
notchedup a healthy growth ofRs. 16,354 crore (US$
4.09billion)inassetsunder management in February2008 and
helped propelthe total industry-wideAUM to Rs. 565,459
crore(US$ 141.36 billion) (Source: indiainvestments.com). A
sharp rise infixed maturity plans (FMPs)andcollection of Rs.
7000 crore (US$ 1.75 billion) through new fund offers
(NFOs) created this surge. InAUMrankings, Reliance
continues to be in thenumber one spot.

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
anATM/debit card are a Reliance innovationIndia’s first long-
short fund comes from Reliance Mutual Fund As at 31st May

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2008, more than 6.6 million people had invested in Reliance
Mutual Fund;the investments comprised 16% of the country’s
entire mutual fund asset base.

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Achievements

In two successive joint surveys by The Economic Times’


Brand Equity andACNielsen, Reliance was recognised as
India’s Most Trusted Mutual Fund.Thecompanyalsowalked
away with seven other scheme prizes – five of them being
outright winners – in the Gulf 2007 Lipper Awards.These
included the Fund House of the Year by Lipper GCC as well
asICRA Online and the Most Improved FundHouse by Asia
Asset Management.It also received the NDTV Business
Leadership Award 2007 in the mutual fund category and
runners’ up recognition as the Best Fund House in theOutlook
Money-NDTV Profit Awards. In addition,the company
received thecoveted CNBC Web18 Genius of the Web
distinction for the Best Mutual Fund Website inthe country.
RCAM was awarded the India Onshore Fund House 2008
instituted by theAsian Investor magazine.The company also
won the India Equities award in the 5-yearPerformance
category.

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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).

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.
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 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.

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.

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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.
ICICIDirect.com website is the primary tool to invest in Mutual
Funds, IPOs, 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
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.

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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.

31
OBJECTIVE

To give a brief idea about the benefits available from


mutual Fund investment.

To give an idea of the types of schemes available.

Explore the recent developments in the mutual funds in


India

To give an idea about the regulations of mutual funds.

To analyze reliance mutual fund strategy against its


competitor.

32
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

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.

33
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.

34
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

25

20

15

10

0
Reliance HDFC ICICI

INTERPRETATION: 50% of respondent have Reliance


Money , 30% of respondent says that other%.

Q.2 Which banking mutual fund offer you good investment


plan?
35
Company Name Percentage of respondent
Reliance 22
HDFC 21
ICICI 7

25

20

15

10

0
RELIANCE HDFC ICICI

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

36
HDFC 15
ICICI 15

20

15

10

0
Reliance HDFC ICICI

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

37
Reliance 18
HDFC 16
ICICI 16

18

17.5

17

16.5

16

15.5

15
Reliance HDFC ICICI

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

38
25

20

15

10

0
Reliance HDFC ICICI

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

Represent by pie chart

ICICI
29%
Reliance
41%

HDFC
30%

39
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.

40
FINDINGS AND SUGGESTION

In Equity Schemes we have taken Reliance Vison Fund and


Reliance growth Fund . Both 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.

41
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.
 Product must be improved .
 There should be provision of complain suggestion boxes
at each branch.

42
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.

43
Limitations
• The time constraint was one of the major problems.
• 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.

44
BIBLIOGRAPHY

Websites:
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

45
QUESTIONNAIR
Q.1 Which banking mutual fund do you prefer for mutual
Fund ?
 Reliance Money
 HDFC
 ICICI

Q.2 Which banking mutual fund offer you good investment


plan?
 Reliance Money
 HDFC
 ICICI

Q.3 Which banking mutul fund offer a lot of tax saving?


 Reliance Money
 HDFC
 ICICI

Q.4 Which banking mutual fund offer you a large number of


product & services?
 Reliance Money
 HDFC
 ICICI

Q.5 Which banking mutual fund offer you a good e-mail


facility ?
 Reliance Money
 HDFC
 ICICI

46