A PROJECT REPORT

ON

For the partial fulfillment of the award of

Bachelor of Business Administration

(2008-2011)

Submitted To Submitted by

JIWAJI UNIVERSITY GWALIOR VIVEK KAPOOR

BBA-V Sem.
 INSTITUTE OF ALLIED SCIENCE AND COMPUTER APPLICATION

Sithouli , Gwalior

DECLARATION

I VIVEK KAPOOR , student of BBA V Semester of INSTITUTE OF ALLIED

SCIENCE AND COMPUTER APPLICATION , hereby declare that the project is my
original piece of work and not the copy of any such work undertaken by someone else,
all the information , facts and figures presented in the report are first hand in nature.
They are actually based on my intense efforts conducted in RELIANCE MUTUAL
FUNDS . I have completed this project under the guidance of Prof. NAVITA
NATHANI ( Faculty PIMG)

Date: VIVEK KAPOOR

BBA –V Sem
 CERTIFICATE

This is to certify that MR. VIVEK KAPOOR Student of BBA Vth Semester
programme has completed her summer training of 4 weeks and prepared this report of
“RELIANCE MUTUAL FUND” under my guidance .

Date: Prof.
(Faculty Guide)
 ACKNOWLEDGEMENT

The present work is dedicated to the persons who not only taught me, but continue
inspire me in knowing the clandestine facts of workmanship. I bow in honor before these
great teachers. The accomplishment of the present study became possible by the
invaluable assistance and guidance of my professional guides to whom I may gratefully
indebted. Firstly I would like to express my sincere gratitude to my faculty guide Prof.
NAVITA NATHANI without whose invaluable guidance, moral support and
encouragement my work would have ever assumed the present shape, research. I were
indebted to my parents and friends for their moral support and possible efforts they
made for me.

Date: VIVEK KAPOOR

BBA –V Sem
 CONTENTS
CHAPTER-1
• ORGANISATION AT A GLANCE
• MUTUAL FUNDS AN OVERVIEW
• CONCEPTUJAL FRAMEWORK
• REVIEW OF LITERATURE
• RATIONALE
• OBJECTIVES OF THE STUDY

CHAPTER -2
• RESEARCH METHODOLOY
• SAMPLE DESIGN
• TOOLS USED FOR DATA COLLECTION
• TOOLS USED FOR DATA ANALYSIS
CHAPTER-3
• RESULTS AND DISCUSSION
• CHAPTER-4
• FINDINGS AND OBSERVATIONS
• CHAPTER-5
 • IMPLICATIONS

CHAPTER-6
• SUGGESTIONS

CHAPTER-7
• SUMMARY

CHAPTER-8
• CONCLUSION
• REFERENCES
• GLOSSARY
• ANNEXURE
ORGANISATION AT A
GLANCE
ABOUT THE DHIRUBHAI AMBANI

Few men in history have made as dramatic a contribution to their country’s economic
fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left
behind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: the corporate visionary, the unmatched strategist, the proud patriot,
the leader of men, the architect of India’s capital markets, the champion of shareholder
interest.

But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator.
In one lifetime, he built, starting from the proverbial scratch, India’s largest private sector
enterprise.
When Dhirubhai embarked on his first business venture, he had a seed capital of barely
US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this
fledgling enterprise into a Rs 60,000 crore colossus—an achievement which earned
Reliance a place on the global Fortune 500 list, the first ever Indian private company to
do so.

Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when
Reliance Textile Industries Limited first went public, the Indian stock market was a place
patronised by a small club of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors

to participate in the unfolding Reliance story and put their hard-earned money in the
Reliance Textile IPO, promising them, in exchange for their trust, substantial return on
their investments. It was to be the start of one of great stories of mutual respect and
reciprocal gain in the Indian markets.

Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the
greatest growth stories in corporate history anywhere in the world, and went on to
become India’s largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the ordinary
shareholder uppermost in mind, in the process making millionaires out of many of the
initial investors in the Reliance stock, and creating one of the world’s largest shareholder
families.

A dream come true The late Dhirubhai Ambani

dreamt of a digital India — an India where the common man would have access to
affordable means of information and communication. Dhirubhai, who single-handedly
built India’s largest private sector company virtually from scratch, had stated as early as
1999: “Make the tools of information and communication available to people at an
affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.”

It was with this belief in mind that Reliance Communications (formerly Reliance
Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone.
This backbone was commissioned on 28 December 2002, the auspicious occasion of
Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and

wireline) and convergent (voice, data and video) digital network. It is capable of
delivering a range of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services — for enterprises as
well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionising the way India communicates and

networks, truly bringing about a new way of life.

Think big. Think different. Think ahead.

Dhirubhai preached — and personally practised — one mantra throughout his life: Dream
with conviction.
He built the Reliance empire from scratch and, in a short span of 25 years, it catapulted to
become one of the top Fortune 500 corporations of the world — an achievement
unparalleled in history.

He was deeply rooted in traditional Indian values, and at the same time, Dhirubhai
possessed a very modern outlook - truly that of a 21st century person. His corporate
philosophy was short, simple and incredibly effective: “Think big. Think different. Think
fast. Think ahead. Aim for the best.” This was clearly reflected in his passion for mega-
sized projects, as well as his fascination for cutting-edge technology and desire to always
achieve the highest possible productivity. At Reliance, Dhirubhai was a pillar of
inspiration for one and all. By practicing what he preached, he inspired and encouraged
everyone to surpass the best in the world.

Dhirubhai fully realised that true empowerment of the people is possible only through
education. Being an effective communicator, he continued to inspire, guide, educate and
motivate everyone through his communications. He was a firm believer in the power of
information and communication, and how it can be utilised and turned to the advantage
of one and all, by making time and distance irrelevant.

He would always say that if a telephone call could be made cheaper than a postcard, it
would transform every home, empower every Indian, remove every obstacle to
opportunity and growth, and tear apart every barrier that divides Indian society. He was
convinced that infocom could energise enterprises, drive governance, and render learning
an interesting experience, apart from making life exciting.
 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.
 MTUTUAL FUNDS AN OVERVIEW

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.

 Apart from these above mentioned banks Life Insurance Corporation

[LIC] and General Insurance Corporation [GIC] too have set up mutual
fund. LIC established its mutual fund in June 1989.while GIC had set up its
mutual fund in December 1990.The mutual fund industry had assest under
management of Rs. 47,004 crores.

 With the entry of Private Sector Funds a new era has started in Mutual
Fund Industry [e.g:- Principal Mutual Fund.]
 Mutual Fund 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.
 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
 ADVANTAGES OF MUTUAL FUNDS

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

Diversification

The nuclear weapon in your arsenal for your fight against Risk. It
simply means that you must spread your investment across different
securities (stocks, bonds, money market instruments, real estate, fixed
deposits etc.) and different sectors (auto, textile, information technology
etc.).

Tax Benefits

Any income distributed after March 31, 2002 will be subject to tax in the
assessment of all Unit holders. However, as a measure of concession to Unit
holders of open-ended equity-oriented funds, income distributions for the
year ending March 31, 2003, will be taxed at a concessional rate of 10.5%.

Regulations

Securities Exchange Board of India (“SEBI”), the mutual funds

regulator has clearly defined rules, which govern mutual funds. These rules
relate to the formation, administration and management of mutual funds and
also prescribe disclosure and accounting requirements. Such a high level of
regulation seeks to protect the interest of investors

Affordability

A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc.

depending upon the investment objective of the scheme. Azn investor can
buy in to a portfolio of equities, which would otherwise be extremely
expensive.
 Rationale

• 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.
 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.

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.
"Growth has no limit at Reliance. I keep revising my vision.
Only when you can dream it, you can do it."

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.

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.

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 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.

• 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

• “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.

• 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.
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.

• 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
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 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.

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
 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 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 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.
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.

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.

 RESEARCH METHODOLOGY

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.
• 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.

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.

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.
 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.
 TOOLS USED FOR 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.
 RESULTS & DISCUSSION

GRAPHICAL REPRESENTATION

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?

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

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
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

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%

FINDING AND 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.

 IMPLICATION

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
 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.
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.
 SUMMARY

Reliance Mutual Fund is so popular because it is investor focused. They

show their dedication by continually dishing out innovative offerings and
unparalleled service initiatives. It is their goal to become respected globally
for helping people achieve their financial dreams through excellent
organization governance and customer care. Reliance Mutual fund wants a
high performance environment that is geared at making investors happy.

RMF aims to do business lawfully and without stepping on other people.

They want to be able to create portfolios that will ensure the liquidity of the
investment of people in India as well as abroad. Reliance Mutual Fund also
wants to make sure that their shareholders realize reasonable profit, by
deploying funds wisely. Taking appropriate risks to reach the company's
potential is also one of Reliance Mutual Fund's objectives.
 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.
 REFERENCES

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
 GLOSSARY

•
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.
• 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.
• 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.