Awareness and Marketing of Mutual Fund at Reliance Nippon Life Asset Management LTD

AWARENESS AND MARKETING OF MUTUAL
FUND AT RELIANCE NIPPON LIFE ASSET

MANAGEMENT LTD
A SUMMER INTERNSHIP REPORT

Submitted by
MUHAMMAD FAHAD C
(ROLL NO. 17P006)

in the partial fulfillment of Summer Internship for the award of the degree of
POST GRADUATE DIPLOMA IN MANAGEMENT/

MASTER OF BUSINESS ADMINISTRATION
FIREBIRD INSTITUTE OF RESEARCH IN MANAGEMENT

COIMBATORE
OCTOBER 2018
CERTIFICATE
Certified that the summer internship project report “AWARENESS AND

MARKETING OF MUTUAL FUND AT RELIANCE NIPPON LIFE ASSET
MANAGEMENT” is the bonafide work of “MUHAMMAD FAHAD C (ROLL
No. 17P006)” MBA/PGDM at Firebird Institute of Research in Management
carried out under my supervision during 10-04-2018 to 31-10-2018.
Place: Coimbatore
Date:
Prof. M. Sankar
Supervisor
DECLARATION
I certify that
a. The work contained in this Summer Internship program is original and has been done
by myself under the general supervision of my Industry and Internal supervisors.
b. The work has not been submitted to any other Institute for any degree or
diploma.
c. I have followed the guidelines provided by the Institute in writing the report.
d. I have conformed to the norms and guidelines given in the Ethical Code of Conduct
of the Institute.
e. Whenever I have used materials (data, theoretical analysis and text) from other
sources, I have given due credit to them by citing them in the text of the thesis and
giving their details in the references.
f. Whenever I have quoted written materials from other sources, I have put them
under quotation marks and given due credit to the sources by citing them and giving
required details in the references.
Muhammad Fahad C
ACKNOWLEDGEMENT
It has all been a great experience being at Reliance Nippon Life Asset Management Limited
(Bangalore).
 I am thankful to Mr. Sundeep Sikka the CEO of Reliance Nippon Life Asset Management Limited
for giving me an internship and a good opportunity to learn and experience about mutual funds.
 I would like to thank Mr. Y. Varrun (Regional Manager) & Mr. Vivek Verma (Relationship
Manager) for their understanding and support. They made my learning and understanding process
easier. Without his approval and sincere support my internship would never have been possible.
 I would like to thank Prof. M. Sankar for his understanding and support. He also made my
learning and understanding process easier. He also helped me in preparing my Final Report.
 Employees of the organization: I would like to thank
Mr. Manjunath N (Relationship Manager)
Ms. Ambika (Operation member)
And all other employees, for helping me out throughout my internship
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CONTENTS
Chapter 1. INTRODUCTION
1.1 COMPANY INTRODUCTION
1.2 SWOT ANALYSIS
1.3 EIC ANALYSIS
1.4 ECONOMIC ANALYSIS OF MUTUAL FUNDS
1.5 ASSETS UNDER MANAGEMENT
1.6 GROWTH IN ASSETS UNDER MANAGEMENT
1.7 COMPANY ANALYSIS
1.8 MAJORLY FOCUSSED SCHEMES
Chapter 2. REVIEW OF LITERATURE
Chapter 3. METHODOLOGY
Chapter 4. ANALYSIS
INTERPRETATION WITH THE QUESTIONNAIRE
COMPARATIVE ANALYSIS WITH OTHER COMPANIES
Chapter 5. FINDINGS,
RECOMMENDATIONS
CONCLUSIONS
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LIST OF FIGURES
Fig. 1.1 MUTUAL FUND OPERATION FLOW CHART

Fig. 1.2 WHY MUTUAL FUNDS?
Fig. 1.3 RELIANCE CAPITAL PERCENTAGE
Fig. 1.4 SWOT ANALYSIS
Fig. 1.5 TOP 5AMC”S IN INDIA
Fig. 1.6 TYPES OF MUTUAL FUNDS
Fig. 4.1 CUSTOMER DISTRIBUTION BASED ON AGE
Fig. 4.2 CUSTOMER DISTRIBUTION BASED ON OCCUPATION
Fig. 4.3 CUSTOMER DISTRIBUTION BASED ON INCOME
Fig. 4.4 AWARENESS OF MUTUAL FUND
Fig. 4.5 CUSTOMER SOURCES ABOUT MUTUAL FUND
Fig. 4.6 CUSTOMER INVESTMENTS IN MUTUAL FUND
Fig. 4.7 CUSTOMER WAY OF INVESTMENT IN MUTUAL FUND
Fig. 4.8 CUSTOMER PREFERENCE ON INVESTMENT
Fig. 4.9 CUSTOMER PREFERENCE WHILE INVESTING
Fig. 4.10 CUSTOMER INTEREST ON MUTUAL FUND COMPANIES
Fig. 4.11 CUSTOMER SATISFACTION ON INVESTMENT
LIST OF TABLES
Table No. 3.1 GROWTH IN ASSETS UNDER MANAGEMENT

Table No. 3.2 DATA ANALYSIS
Table No. 3.3 DIVERSIFIED MID & SMALL CAP CATEGORY
Table No. 3.4 MULTI CAP FUNDS
Table No. 3.5 SECTOR SPECIFIC CATEGORY
Table No. 3.6 TAX SAVER CATEGORY
Table No. 3.7 TAX SAVER CATEGORY (BALANCED CATEGORY)
Table No. 3.8 MONTHLY INCOME PLAN (MIP) CATEGORY
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ABSTRACT
• Mutual fund is i ncreasing fast each year and it is an investm ent for future with
high return . This study i ncludes the understandi ng of various S yst emati c
Investm ent Pl an s (S IP), and to understand the vari ous schem es avail able i n the
mutual fund, and how it is benefici al to the cust omers in t erms of t ax and return.
This stud y is to know about the awareness of mutual funds among the emplo yees
who are working in banks and t o promot e Reli ance mutual fund product. To
understand whether t he customers are sat isfied who are already i n the m utual
fund. Here, the difference bet ween mutual fund and other i nvestments like fixed
deposit is shown in t erms of return. The main obj ectives of research is to find
awareness regarding m utual fund among earning peopl e and Marketing of mutual
funds in a gi ven area and hi ghli ght the benefits to custom ers.
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CHAPTER 1
INTRODUCTION
INTRODUCTION
These days you are hearing more and more about mutual funds as a means of investment. If you are
like most people, you probably have most of your money in a bank savings account and your biggest
investment may be your home. Apart from that, investing is probably something you simply do not
have the time or knowledge to get involved in. You are not the only one. This is why investing through
mutual funds has become such a popular way of investing.
What is a Mutual Fund?
A mutual fund is a pool of money from numerous investors who wish to save or make money just
like you. Investing in a mutual fund can be a lot easier than buying and selling individual stocks and
bonds on your own. Investors can sell their shares when they want.
Professional Management Each fund's investments are chosen and monitored by qualified
professionals who use this money to create a portfolio. That portfolio could consist of stocks, bonds,
money market instruments or a combination of those.
Fund Ownership. As an investor, you own shares of the mutual fund, not the individual securities.
Mutual funds permit you to invest small amounts of money, however much you would like, but even
so, you can benefit from being involved in a large pool of cash invested by other people. All
shareholders share in the fund’s gains and losses on an equal basis, proportionately to the amount
they've invested.
Mutual Funds are Diversified
By investing in mutual funds, you could diversify your portfolio across a large number of securities
so as to minimize risk. By spreading your money over numerous securities, which is what a mutual
fund does, you need not worry about the fluctuation of the individual securities in the fund's portfolio.
Mutual Fund Objectives
There are many different types of mutual funds, each with its own set of goals. The investment
objective is the goal that the fund manager sets for the mutual fund when deciding which stocks and
bonds should be in the fund's portfolio.
For example, an objective of a growth stock fund might be: This fund invests primarily in the equity
markets with the objective of providing long-term capital appreciation towards meeting your long-
term financial needs such as retirement or a child’s education.
Depending on investment objectives, funds can be broadly classified in the following 5 types:
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 Aggressive growth means that you will be buying into stocks which have a chance for dramatic growth
and may gain value rapidly. This type of investing carries a high element of risk with it since stocks
with dramatic price appreciation potential often lose value quickly during downturns in the economy.
It is a great option for investors who do not need their money within the next five years, but have a
more long-term perspective. Do not choose this option when you are looking to conserve capital but
rather when you can afford to potentially lose the value of your investment.
 As with aggressive growth, growth seeks to achieve high returns; however, the portfolios will consist
of a mixture of large-, medium- and small-sized companies. The fund portfolio chooses to invest in
stable, well established, blue-chip companies together with a small portion in small and new
businesses. The fund manager will pick, growth stocks which will use their profits grow, rather than
to pay out dividends. It is a medium - long-term commitment, however, looking at past figures,
sticking to growth funds for the long-term will almost always benefit you. They will be relatively
volatile over the years so you need to be able to assume some risk and be patient.
 A combination of growth and income funds, also known as balanced funds, are those that have a
mix of goals. They seek to provide investors with current income while still offering the potential for
growth. Some funds buy stocks and bonds so that the portfolio will generate income whilst still
keeping ahead of inflation. They are able to achieve multiple objectives which may be exactly what
you are looking for. Equities provide the growth potential, while the exposure to fixed income
securities provide stability to the portfolio during volatile times in the equity markets. Growth and
income funds have a low-to-moderate stability along with a moderate potential for current income
and growth. You need to be able to assume some risk to be comfortable with this type of fund
objective.
 That brings us to income funds. These funds will generally invest in a number of fixed-income
securities. This will provide you with regular income. Retired investors could benefit from this type
of fund because they would receive regular dividends. The fund manager will choose to buy
debentures, company fixed deposits etc. in order to provide you with a steady income. Even though
this is a stable option, it does not go without some risk. As interest-rates go up or down, the prices of
income fund shares, particularly bonds will move in the opposite direction. This makes income funds
interest rate sensitive. Some conservative bond funds may not even be able to maintain your
investments' buying power due to inflation.
 The most cautious investor should opt for the money market mutual fund which aims at maintaining
capital preservation. The word preservation already indicates that gains will not be an option even
though the interest rates given on money market mutual funds could be higher than that of bank
deposits. These funds will pose very little risk but will also not protect your initial investments' buying
power. Inflation will eat up the buying power over the years when your money is not keeping up with
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inflation rates. They are, however, highly liquid so you would always be able to alter your investment
strategy.
Closed-End Funds
A closed-end fund has a fixed number of shares outstanding and operates for a fixed duration
(generally ranging from 3 to 15 years). The fund would be open for subscription only during a
specified period and there is an even balance of buyers and sellers, so someone would have to be
selling in order for you to be able to buy it. Closed-end funds are also listed on the stock exchange so
it is traded just like other stocks on an exchange or over the counter. Usually the redemption is also
specified which means that they terminate on specified dates when the investors can redeem their
units.
Open-End Funds
An open-end fund is one that is available for subscription all through the year and is not listed on the
stock exchanges. The majority of mutual funds are open-end funds. Investors have the flexibility to
buy or sell any part of their investment at any time at a price linked to the fund's Net Asset Value.
MUTUAL FUND OPERATION FLOW CHART.
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FIG.NO: 1.1
The diagram above illustrates the mutual fund is a common pool of investments of a cross section to
investors and the over view of mutual fund.
Why Should You Invest in Mutual Funds?

Mutual funds allow investors to pool in their money for a diversified selection of securities, managed
by a professional fund manager. It offers an array of innovative products like fund of funds, exchange-
traded funds, Fixed Maturity Plans, Sect oral Funds and many more. Whether the objective is financial
gains or convenience, mutual funds offer many benefits to its investors.
WHY MUTUAL FUNDS?
FIG NO: 1.2

SOURCE: TIMES OF INDIA NEWS ARTICLE
BEAT INFLATION
Mutual Funds help investors generate better inflation-adjusted returns, without spending a lot of
time and energy on it. While most people consider letting their savings 'grow' in a bank, they don't
consider the inflation may be nibbling away its value. Suppose you have Rs.100 as savings in your
bank today. These can buy about 10 bottles of water. Your bank offers 5% interest per annum, so by
next year you will have Rs.105 in your bank. However, inflation that year rose by 10%. Therefore,
one bottle of water costs Rs.11. By the end of the year, with Rs.105, you will not be able to afford
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10 bottles of water anymore. Mutual Funds provide an ideal investment option to place your savings
for a long-term inflation adjusted growth, so that the purchasing power of your hard earned money
does not plummet over the years.
EXPERT MANAGERS
Backed by a dedicated research team, investors are provided with the services of an experienced
fund manager who handles the financial decisions based on the performance and prospects available
in the market to achieve the objectives of the mutual fund scheme.
Convenience
Mutual funds are an investment option when you are looking at convenience and timesaving
opportunity. With low investment amount alternatives, the ability to buy or sell them on any
business day and a multitude of choices based on an individual's goal and investment need,
investors are free to pursue their course of life while their investments earn for them.
Probably the biggest advantage for any investor is the low cost of investment that mutual funds
offer, as compared to investing directly in capital markets. Most stock options require significant
capital, which may not be possible for young investors who are just starting out.
Mutual funds, on the other hand, are relatively less expensive. The benefit of scale in brokerage and
fees translates to lower costs for investors. One can start with as low as Rs.500 and get the
Advantage of long term equity investment.
Diversification
Going by the adage, 'Do not put all your eggs in one basket', mutual funds help mitigate risks to a
large extent by distributing your investment across a diverse range of assets. Mutual funds offer a
great investment opportunity to investors who have a limited investment capital.
Liquidity
Investors have the advantage of getting their money back promptly, in case of open-ended schemes
based on the Net Asset Value (NAV) at that time. In case your investment is close-ended, it can be
traded in the stock exchange, as offered by some schemes.
High Return Potential
Based on medium or long-term investment, mutual funds have the potential to generate a higher
return, as you can invest on a diverse range of sectors and industries.
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REVIEW OF LITERATURE
Dr. Sadhak . has explained in detail the growth of Indian mutual fund industry over a period of
time. He has explained very neatly the benefits of the mutual funds and their benefits as well as risk
involved in the investment in them further, he has explained the recent changes in the regulations,
practices, investment management, and strategies of marketing, various products of mutual funds,
selling and distribution as well as services delivery systems. The book has suggested various ways of
improvements in the strategic as well as operational practices of mutual funds are suggested keeping in
mind the mechanisms used by the fund managers in developed economies. These include
1. Measures to improve operational efficiency
2. Strict norms for the supervision of the mutual fund industry by the regulatory body.
3. Higher and strict standards of disclosure and managerial accountability
4. Ways for minimising risks by better planning so that the business cycles and liquidity planning is
managed in a better way.
5. Strategies for product development, market expansion and improvement in service standards
Further in the context of extreme market volatility the book discussed the self regulatory organization,
corporate governance and related fiduciary responsibilities in mutual funds. Thus the book provides
fund managers and investors a thorough analysis of mutual funds.
Amit Singh Sisodiya, Azala Reddy & Feroz Zaheer have authored a book on the development phases of
mutual fund industry and the emergence of the mutual fund industry as a major force in Indian financial
market. The authors observed that with the total AUM increasing from Rs. 1,01,565 crores in January
2000 to Rs.1,75,918 crores by the year 2005, the industry growth has been very rapid and outstanding.
According to the authors, the vibrant development in the economy backed by the booming stock market is
the major reasons behind such a radical development of the mutual fund industry.
Madhusudan and Jambodekar studied the marketing strategies of mutual fund companies to get the
business from the prospective investors. They also carried on a survey to find out the awareness amongst
the common investors regarding mutual fund investments. They tried to find out the factors and the
information sources which influence the buying decision of the mutual fund investors. The study
concluded that that Income Schemes and Open Ended Schemes are more preferred than Growth Schemes
and Close Ended Schemes. Investors give preference to the liquidity of their investments. Hence they
prefer open ended schemes over close ended schemes. The study also found out that newspapers are
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Magazines are the most preferred source of information for the investors for taking their investment
decisions.
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Company Profile
Reliance Capital is one of the largest financial services company in India. It was founded by
DhirubhaiAmbani in 1986 at Ahmadabad in Gujarat it has headquartered in Mumbai, India. It is
presently led by Anil Ambani, Chairman, Reliance capital is involved in activity such as asset
management, mutual fund, life insurance, general insurance, equities and commodity broking, wealth
management services, distribution of financial products, asset reconstruction, proprietary investments
and other activities of financial services
Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset Management
Limited) (RNLAM) is the asset manager of Reliance Mutual Fund (RMF). RNLAM is a subsidiary
of Reliance Capital Limited (RCL). Presently, RCL holds 51% of its total issued and paid-up equity
share capital of RNLAM. Nippon Life Insurance Company (NLI) holds 44.57% of RNLAM's total
issued and paid up equity share capital.
RELIANCE CAPITAL ASSETS HOLDING %
FIG NO: 1.3
VISION STATEMENT
 To be globally respected wealth creator with emphasis on customer care and culture of good corporate
governance.
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MISSION STATEMENT
 To create and nurture a world class, high performance environment aimed at delighting our customer
OVERVIEW
Reliance Mutual Fund (RMF) is one of India's leading mutual funds, with Average Assets Under
Management (AAUM) of 1,95,845 Crores (October 2016 - December 2016 Quarter Q3) and 64.67
lakhs folios (as on 31st December 2016)
Reliance Mutual Fund, a part of the Reliance Anil Dhirubhai Ambani (ADA) Group, is one of the
fastest growing mutual funds in India. RMF offers investors a well-rounded portfolio of products to
meet varying investor requirements and has presence in 160cities across the country. RMF constantly
endeavors to launch innovative products and customer service initiatives to increase value to
investors.
The main objective of reliance mutual fund is
 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.
 To take such steps as may be necessary from time to time to realize the effects without any limitation.
Sponsors
Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Limited (RCL) and Nippon
Life Insurance Company (NLI). RCL is sponsor & settler of RMF. RCL is a RBI registered Non-
Banking Finance Company (NBFC) and has its business interests in Asset Management, Life
Insurance, General Insurance, Private Equity, Proprietary Investments, Stock Broking and other
activities in the banking and financial services sector. The Sponsors i.e. RCL and NLI are not
responsible or liable for any loss resulting from the operation of the Scheme beyond the contribution
of an amount of `1 Lakh, which has been made by RCL towards the initial corpus for setting up the
Fund and such other accretions and additions to the corpus.
SCHEMES
To make their packages more attractive, reliance mutual fund offered many schemes called the
equity/growth schemes, debt/income schemes and sector specific scheme
Schemes under Reliance Mutual fund:
By Structure
 Open ended schemes
 Close ended schemes
 Interval schemes
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By Investment Objective
 Growth schemes
 Dividend schemes
 Dividend payout schemes
 Balanced schemes
 Tax saving schemes
 Sector specific schemes
OBJECTIVES OF RELIANCE MUTUAL FUND

 To deploy funds and thus raised for the benefit of the unit holders so that they get reasonable return
on their savings.
 To take such steps as may be necessary from time to time to realise the effects without any limitations.
 To carry on the activities of the mutual fund according to the law and for the benefit of the people of
India and abroad they formulated and devised various collective schemes of savings and investment.
SWOT ANALYSIS
Strength Opportunity
(external)
(Internal)
Weakness Weakness
(External)
(internal)
Fig. 1.4
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SWOT ANALYSIS OF RELIANCE MUTUAL FUND
A type of fundamental analysis of the health of a company by examining its strengths(S), weakness
(W), business opportunity (O), and any threat (T) or dangers it might be exposed to.
STRENGTHS
 Brand strategy
As opposed to some of its competitors (e.g. HSBC), Reliance ADAG operates a multi-brand strategy.
The company operates under numerous well-known brand names, which allows the company to
appeal to many different segments of the market.
Distribution channel strategy:

Reliance is continuously improving the distribution of its products. Its online and Internet-based
access offers a combination of excellent growth prospects and its retail direct business.
Various sources of income:
Reliance has many sources of income throughout the group, and this diversity within the group makes
the company more flexible and resistant to economic and environmental changes.
Large pool of installed capacities
Experienced managers for large number of Generics.
Large pool of skilled and knowledge able manpower.
Increasing liberalization of government policies.
 WEAKNESS
Emerging markets:
Since there is more investment demand in the United States, Japan and the rest of Asia, Reliance
should concentrate on these markets, especially in view of low global interest rates.
Mutual funds are like many other investments without a guaranteed return:
There is always the possibility that the value of your mutual fund will depreciate. Unlike fixed-
income products, such as bonds and Treasury bills, mutual funds experience price fluctuations along
with the stocks that make up the fund. When deciding on a particular fund to buy, you need to research
the risks involved ± just because a professional manager is looking after the fund, that doesn’t mean
the performance will be stellar.
Fees:
In mutual funds, the fees are classified into two categories:
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Shareholder fees and annual operating fees. The shareholder fees, in the forms of loads and
redemption fees are paid directly by shareholders purchasing or selling the funds. The annual fund
operating fees are charged as an annual percentage ± usually ranging from 1-3%. These fees are
assessed to mutual fund investors regardless of the performance of the fund. As you can imagine, in
years when the fund doesn’t make money, these fees only magnify losses.
 OPPORTUNITIES
Online Market (Reliance mutual funds)

The online market offers Reliance mutual funds the ability to greatly expand their business.
Reliance mutual funds can market to a much wider audience for relatively little expense…
New Products can help Reliance mutual funds to expand their business and diversity their customer
base.
Greater innovation can help Reliance mutual funds to produce unique products and services that
meet customer’s needs for eg: Reliance mutual fund day on every month 07th
 THREATS
MATURE MARKETS
Mature markets are competitive. In order for Reliance mutual funds to grow in a mature market, it
has to increase market share, which is difficult and expensive
BADECONOMY
A bad economy can hurt Reliance mutual funds business by decreasing the number of potential
customers
INTENSE COMPETITION
Intense competition can lower Reliance mutual funds profits, because competitors can entice
consumers away with superior products
EIC ANALYSIS
India has emerged as the fastest growing major economy in the world as per the Central Statistics
Organization (CSO) and International Monetary Fund (IMF). The Government of India has forecasted
that the Indian economy will grow by 7.1 per cent in FY 2016-17. As per the Economic Survey 2016-
17, the Indian economy should grow between 6.75 and 7.5 per cent in FY 2017-18. The improvement
in India’s economic fundamentals has accelerated in the year 2015 with the combined impact of
strong government reforms, Reserve Bank of India's (RBI) inflation focus supported by benign global
commodity prices.
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India's consumer confidence index stood at 136 in the fourth quarter of 2016, topping the global list
of countries on the same parameter, as a result of strong consumer sentiment, according to market
research agency, Nielsen.
Market size
India's gross domestic product (GDP) grew by 7 per cent year-on-year in October-December 2016
quarter, which is the strongest among G-20 countries, as per Organization for Economic Co-operation
and Development (OECD) Economic Survey of India, 2017. According to IMF World Economic
Outlook Update (January 2017), Indian economy is expected to grow at 7.2 per cent during FY 2016-
17 and further accelerate to 7.7 per cent during FY 2017-18.
The tax collection figures between April 2016 and January 2017 show an increase in Net Indirect
taxes by 16.9 per cent and an increase in Net Direct Taxes by 10.79 per cent year-on-year, indicating
a steady trend of healthy growth. The total number of e-filed Income Tax Returns rose 21 per cent
year-on-year to 42.1 million in 2016-17 (till 28.02.17), whereas the number of e-returns processed
during the same period stood at 43 million.
Corporate earnings in India are expected to grow by over 20 per cent in FY 2017-18 supported by
normalization of profits, especially in sectors like automobiles and banks, while GDP is expected to
grow by 7.5 per cent during the same period, according to Bloomberg consensus.
India has retained its position as the third largest startup base in the world with over 4,750 technology
startups, with about 1,400 new start-ups being founded in 2016, according to a report by NASSCOM.
India's labor force is expected to touch 160-170 million by 2020, based on rate of population growth,
increased labor force participation, and higher education enrolment, among other factors, according
to a study by ASSOCHAM and Thought Arbitrage Research Institute. India's foreign exchange
reserves stood at US$ 366.781 billion as on March 17, 2017 as compared to US$ 360 billion by end
of March 2016, according to data from the RBI.
Asset Management: AUMs have more than doubled since FY07
 The asset management industry in India is among the fastest growing in the world.
 Total AUM of the mutual fund industry clocked a CAGR of 12.4 per cent over FY07–16.
 As of FY16, 42 asset management companies were operating in the country.
 As of March 2016, total AUM of mutual fund industry was recorded at US$ 206.8 billion.
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Country’s financial services sector consists of the capital markets, insurance sector and non-banking
financial companies (NBFCs). India’s gross domestic savings (GDS) as a percentage of Gross
Domestic Product (GDP) has remained above 30 per cent since 2004. It is projected that national
savings in India will reach US$ 1,272 billion by 2019. Over 95 per cent of household savings in India
are invested in bank deposits and only 5 per cent in other financial asset classes.
 The asset management industry in India is among the fastest growing in the world. Corporate
investors accounted for around 45.9 per cent of total AUM in India, while High Net worth Individuals
(HNWI) and retail investors account for 28.6 per cent and 22.9 per cent, respectively. In the Asia-
Pacific, India is among the top five countries in terms of HNWIs.
 RBI has allowed 100 per cent foreign investment under the automatic route in ‘other financial
services’.
 State Bank of India (SBI) and FTSE Russell, the arm of the London Stock Exchange, has plans to
jointly develop a Bond Index for global investors to benchmark Indian bond market against that of
its competitors.
 India’s equity market turnover has increased significantly in recent years. The annual turnover value
in the National Stock Exchange (NSE) witnessed a CAGR of 20.7 per cent between FY96 and FY15
to reach US$ 718 billion. During the month of October 2016, the mutual fund equity schemes attracted
a net inflow of US$ 1.40 billion
 The Government of India has taken various steps to deepen the reforms in the capital markets,
including simplification of the Initial Public Offer (IPO) process which allows qualified foreign
investors (QFIs) to access the Indian bond markets.
TOP 5 AMC”S IN INDIA
Fig no: 1.5
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Economic analysis of mutual funds
Putting together a mutual fund portfolio is a daunting task for an average investor. Some investors
know how to choose a few top-performing equity mutual fund schemes. But even they would struggle
to put them together to create a mutual fund portfolio based on their risk appetite and quantum of
investment.
This is the reason why Mutual Funds has been recommending mutual fund portfolios for some time.
These portfolios consist of carefully chosen mutual funds. It also offers allocation to different funds
based on the investor's risk profile and the quantum of SIP (Systematic Investment Plan) investment.
Three risk profile considered were: conservative, moderate and aggressive. Considered three SIP
investment profile -- below Rs 5,000, between Rs 5,000-10,000 and above Rs 10,000 - while
constructing the portfolio.
Mutual funds are now the investment of choice for huge flows of individual savings. Almost 99% of
this amount was accounted for by flows of $401 billion into stock funds, bond funds, and money
market funds. Truly, this is an industry on the move. Most of the action, as it were, is in the fund
industry’s stock funds.
Conflicting Returns on Capital

The higher the cost for the shareholder, the lower the return on his or her capital invested in the fund.
But the higher the fee the management company charges the fund, the higher the return on its capital.
It doesn’t take a mathematical genius to figure out that, other things equal, each extra one billion.
Dollars of fees extracted from the fund by the manager results in one billion dollars of reduced returns
to .The fund shareholders. And, as will be obvious from the numbers I’ll soon present, fund expenses
could .Easily be reduced by many billions of dollars. To understand this point, let’s consider which
return you might have made if a decade ago, you’d .Invested $10,000, not in the shares of the average
fund, but in the shares of the average fund manager.
There are a number of managers whose shares are publicly-held, so the answer can be calculated. For
the .Average equity fund, the investment would have grown to $53,000—a four-fold profit. Not bad!
But a Far cry from the $70,000 value—a six-fold profit—on the same initial investment in the
common stocks of the managers. The managers, obviously, did better for themselves than for their
investors. For them .To do so well in the face of their pervasive failure to add value to fund
shareholders’ performance Indeed, to subtract substantial value.
22 | P a g e
Mutual fund assets hit record Rs. 17.9 trillion at Feb-end 2017
The industry, comprising 43 active players, had an average assets under management (AUM) of Rs
17.37 lakh crore at January-end, the latest data of the Association of Mutual Funds in India (AMFI)
showed.
 Mutual fund industry's asset base rose to an all-time high of Rs 17.89 lakh crore at the end of
February, primarily on account of strong inflows in equity, income and money market segments.
 Industry experts attributed the monthly rise in asset base to inflows in income and equity categories.
Besides, buoyant investor sentiment and phenomenal growth in systematic investment plans (SIPs)
also helped in the growth of assets under management, they added. "With balance funds are fast
catching up with equity funds in terms of getting almost same fresh flows. It indicates asset
allocation approach is setting in among investors," added.
 The industry AUM had crossed Rs 10 lakh crore in May 2014, and it is expected to reach Rs 20 lakh
crore this year.
 "The asset under management of the mutual fund industry is quite likely to cross the Rs 20 lakh
crore mark in 2017," Quantum Mutual Fund Chief Executive Jimmy Patel said.
 Overall inflow in mutual fund schemes stood at Rs 30,273 crore in last month Of this, income funds,
which invest in a combination of government securities saw Rs 10,864 crore coming in while liquid
funds or money market category, invest in cash assets such as treasury bills, certificates of deposit
and commercial paper for short investment horizon, witnessed an infusion of Rs 8,227 crore.
Further, equity and equity-linked saving schemes saw an infusion of Rs 6,462 crore. However, gilt
and gold exchange-traded funds (ETFs) witnessed a pull out of Rs. 772 Crore and Rs. 46 crore,
respectively during the period under review. Mutual funds are investment vehicles made up of a
pool of funds collected from a large number of investors. The funds are invested in stocks, bonds
and money market instruments, among others.
23 | P a g e
Types of mutual funds
Fig No: 1.6
Mutual funds are those institutions which take the money under mutual funds schemes. These
schemes are also managed by Asset Management Companies (AMC), which are sponsored by
different financial institutions or companies. These mutual funds schemes can be divided under
different basis and need of customers. Detail of these schemes are given below:
Types of Mutual Funds Schemes on the Basis of Structure
i) Open - Ended Schemes

Open - ended schemes is that structure of mutual fund which allow investors to buy the shares of
MF at its unlimited level and time and sell it when they want in market.
ii) Close - Ended Schemes

Close - ended schemes issue the Mutual Funds under many restrictions like to offer to limited
investors or limit of time of issue etc.
iii) Interval Schemes

This is a mutual fund scheme whose redemption features is between those of closed-end and open-
end funds.
24 | P a g e
Types of Mutual Funds Schemes on the Basis of Investment
Objective
i) Growth Schemes
In the growth scheme, all profits made by the fund are ploughed back into the scheme. This causes
the Net Asset Value to rise over time. The NAV is the price of a unit of a mutual fund.
ii) Income or Dividend Schemes

The dividend option does not re-invest the profits made by the fund through its investments.
Instead, it is given to the investor from time to time.
iii) Balanced Schemes

The aim of balanced schemes is to provide both growth and regular income. Such schemes invest
both in equities and fixed income securities in the proportion indicated in their offer documents.
They generally invest 40-60% in equity and the rest in debt instruments.
Other Mutual Funds Schemes

1) Money Market Schemes
it is open ended mutual funds whose amount will be only invested in money market. These funds
invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of
deposit, and commercial paper. The main goal is the preservation of principal, accompanied by
modest dividends.
ii) Tax Saving Schemes
Tax saving schemes of mutual funds which saves the tax of investors. Tax benefits to be mentioned
under the "objects of the offering" column. Any exclusive tax advantages for the mutual fund
company and its shareholders by mentioning the section number of the Income Tax Act
1961 without revealing the content of the section.
iii) Special Schemes
this is the mutual funds which have something special and mutual funds provider will mention this
in invitation form. You can read the discussion of reliance mutual funds updates to know what is
special in it.
iv) Index Schemes
Index schemes attempt to replicate the performance of a particular index such as the BSE.
25 | P a g e
v) Sector Specific Schemes
Sector Specific Schemes are those Mutual funds Schemes which make investments in those sectors
that have been specified in the prospectus of the funds. The various sectors in which the Sector
Specific Schemes make investments are software, petroleum stocks, power, and pharmaceuticals
ADVANTAGES OF MUTUALFUNDS
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
One rule of investing, for both large and small investors, is asset diversification. Diversification
involves the mixing of investments within a portfolio and is used to manage risk. For example, by
choosing to buy stocks in the retail sector and offsetting them with stocks in the industrial sector, you
can reduce the impact of the performance of any one security on your entire portfolio. To achieve a
truly diversified portfolio, you may have to buy stocks with different capitalizations from different
industries and bonds with varying maturities from different issuers. For the individual investor, this
can be quite costly.
 Liquidity
Another advantage of mutual funds is the ability to get in and out with relative ease. In general, you
are able to sell your mutual funds in a short period of time without there being much difference
between the sale price and the most current market value. However, it is important to watch out for
any fees associated with selling, including back-end load fees. Also, unlike stocks and exchange-
traded funds (ETFs), which trade any time during market hours, mutual funds transact only once per
day after the fund's net asset value (NAV) is calculated.
 Professional Management
When you buy a mutual fund, you are also choosing a professional money manager. This manager
will use the money that you invest to buy and sell stocks that he or she has carefully researched.
Therefore, rather than having to thoroughly research every investment before you decide to buy or
sell, you have a mutual fund's money manager to handle it for you
26 | P a g e
How to get maximum returns from mutual funds?
1) Invest through SIP: Best way to invest in mutual funds is investing through SIP every month.
Each small amount invested through mutual fund every month would create a good amount over a
period of time. Do you know that Rs 5,000 per month invested through SIP in equity fund with an
annualized returns of 12% can yield you Rs 25 Lakhs in 15 years.
2) Invest based on risk appetite: High risk appetite investors should go more towards equity
funds, moderate risk appetite investors should be investing in hybrid funds (Equity + debt
combination) and low risk appetite investors should be investing more in debt related funds. E.g.
Reliance Small Cap fund, which is for high risk investors gave 140% returns in 1 year. This does
not mean you would get such returns every year. But investing based on your risk style would help
you to get high returns.
3) Invest in various categories of funds: Large cap, mid-cap and small-cap funds perform
differently over a period of time in various market scenarios. Hence, investing in various categories
of such funds would help you to get maximum returns. E.g. Franklin India Smaller companies fund
focuses on potential small companies. This fund has outperformed and given 100% returns in last 1
year and annualized returns of 24% in last 5 years. Mid-cap funds may not provide such returns
every year. But investing in such mid-cap fund would help you to get maximum return over a
period of time.
4) Invest in sectors that are expected to outperform: There are high risk investors who are
willing to take risks and invest in high risk funds like sector funds. Such investors can consider
sectors that are likely to out-perform in the near future and invest in such funds. E.g. Infrastructure
sector, though has reached some peak, is still expected to outperform in next 3 to 5 years.
Considering Infra funds or banking funds (which would indirectly boost infra sector by way of
funding) for short term to medium term of 3 to 5 years would be a best period to invest.
5) Invest in funds based on your financial goal: One of the area where investors fail to
understand about mutual funds is they invest in wrong funds or misunderstand about the basic
principle that they need to hold for the long term. Don’t invest just because a mutual fund scheme
has given 100% returns in one year. You should know that such fund could erode your capital if
there is market crash. Invest in mutual funds based on your financial goal. E.g. You want to save
money of Rs 30 Lakhs for your child foreign education in next 15 years. If you can invest Rs 6,000
per month in well diversified mutual fund portfolio for 15 years, you can easily achieve this goal.
Hence, your investment should always be based on a pre-defined goal to achieve best result.
27 | P a g e
6) Use STP for lump sum mutual fund investments: One of the biggest mistake investor would do
is investing a lump sum in equity funds. This may be a good strategy during market corrections.
However, when markets are reaching peak or when you do not know its direction, the best way to
invest a lump sum in mutual funds is invest in short term debt funds and do STP (Systematic Transfer
Plan) to equity funds over a period of time. This is nothing but you are doing SIP to equity fund from
debt fund thereby reducing risk of investing a lump sum in mutual fund.
Assets under Management - AUM'

Assets under management (AUM) are the total market value of assets that an investment company
or financial institution manages on behalf of investors. Assets under management definitions and
formulas vary by company. Some financial institutions include bank deposits, mutual funds and
cash in their calculations; others limit it to funds under discretionary management, where the
investor assigns responsibility to the company.
BREAKING DOWN 'Assets under Management - AUM'
Assets under management describe how much of investor’s money an investment company controls.
Investments are held in a mutual fund or hedge fund and are managed by a venture capital company,
brokerage company or portfolio manager.
AUM indicates the size of the fund and may refer to the total amount of assets managed for all clients
or the total assets managed for a specific client. It includes the funds the manager can use to make
transactions. For example, if an investor has $50,000 in an investment portfolio, the fund manager
can buy and sell shares using the investor's funds without obtaining the investor’s permission.
Fluctuating daily, AUM depends on the flow of investor money in and out of a particular fund and
asset performance. It also fluctuates based on changes in the company investments or the value of a
fund.
In the United States, once a firm has more than $30 million in assets under management, it must
register with the Securities and Exchange Commission. An investor’s AUM determines the type of
services received from a financial advisor or brokerage company. Many companies have requirements
based on AUM, and it may determine if an investor is qualified for a certain type of investment
because some investments have minimum purchase requirements.
28 | P a g e
Calculating AUM
Methods of calculating assets under management vary among companies. It may increase when
investment performance increases or when new customers and new assets are acquired. It may
decrease when investment performance decreases, and because of client turnovers, fund closures,
withdrawals or redemptions. Assets under management include investor capital and can include
capital owned by the investment company executives.
Why AUM Matters
Several investment companies charge management fees that are a fixed percentage of assets under
management and it is important for investors to understand how companies calculate AUM.
Investment companies use assets under management as a marketing tool to attract investors. It helps
investors get an indication of the size of the company's operations relative to its competitors.
However, it is only one aspect in evaluating a company and does not offer full details about the
investment potential of the company.
How to Compare AUM
Investors want to know how much money from other investors is flowing into a company. Therefore,
an investor should understand how to compare AUM. More assets under management is not always
better. It may be helpful to search for below-average to average net assets as a method to compare
AUM. An asset under management provides insight into a company, but when compared against
other factors such as market capitalization, it discloses true insight into an investment company.
TITLE: GROWTH IN ASSETS UNDER MANAGEMENT

Assets under management (Rs.Cr)
Decem %
Mutual March Chan
ber Chan
Funds 2017 ge
2016 ge
ICICI
Prudentia 242,96 14,97
227,989 6.57
l Mutual 1 3
Fund
HDFC
237,17 15,35
Mutual 221,825 6.92
8 3
Fund
Reliance
210,89 15,04
Mutual 195,845 7.68
1 5
Fund
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Birla Sun
Life 195,04 14,24
180,808 7.88
Mutual 9 1
Fund
SBI
157,02 16,02
Mutual 140,997 11.37
5 8
Fund
UTI
136,81
Mutual 129,389 7,421 5.74
0
Fund
Kotak
Mahindra 10,08
82,135 92,216 12.27
Mutual 1
Fund
Franklin
Templeto
75,783 81,615 5,833 7.70
n Mutual
Fund
DSP
BlackRoc
58,357 64,177 5,820 9.97
k Mutual
Fund
IDFC
Mutual 57,998 60,636 2,638 4.55
Fund
Axis
Mutual 49,281 57,700 8,419 17.08
Fund
Tata
Mutual 38,271 42,619 4,348 11.36
Fund
L&T
Mutual 35,191 39,300 4,109 11.68
Fund
Sundaram
Mutual 27,013 29,370 2,357 8.72
Fund
DHFL
Pramerica
24,807 26,117 1,310 5.28
Mutual
Fund
Invesco
Mutual 23,617 23,528 -89 -0.38
Fund
LIC
Mutual 18,022 21,475 3,453 19.16
Fund
JM
13,522 13,668 146 1.08
Financial
30 | P a g e
Mutual
Fund
Indiabulls
Mutual 10,227 10,820 593 5.80
Fund
Baroda
Pioneer
10,785 10,324 -462 -4.28
Mutual
Fund
Canara
Robeco
9,411 9,940 529 5.62
Mutual
Fund
HSBC
Mutual 8,670 8,812 142 1.64
Fund
Motilal
Oswal
7,131 8,115 984 13.80
Mutual
Fund
IDBI
Mutual 7,761 7,719 -42 -0.55
Fund
Mirae
Asset
6,343 7,457 1,113 17.55
Mutual
Fund
Edelweiss
Mutual 6,826 6,918 91 1.34
Fund
BNP
Paribas
6,032 5,891 -141 -2.34
Mutual
Fund
PRINCIP
AL
4,868 5,347 479 9.84
Mutual
Fund
BOI
AXA
2,896 3,552 656 22.66
Mutual
Fund
Union
Mutual 3,056 3,416 361 11.80
Fund
Mahindra
Mutual 1,457 1,995 539 36.97
Fund
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Taurus
-
Mutual 2,339 1,876 -463
19.81
Fund
Peerless
Mutual 946 1,062 116 12.28
Fund
Quantum
Mutual 858 962 104 12.12
Fund
PPFAS
Mutual 676 696 21 3.04
Fund
IIFL
Mutual 424 565 141 33.33
Fund
Escorts
-
Mutual 286 243 -44
15.33
Fund
Sahara
Mutual 67 67 0 0.49
Fund
Shriram
Mutual 38 41 3 7.70
Fund
1,691,9 1,828,1 136,2
Total 7.45
46 51 06
TABLE NO
CHAPTER 2
METHODOLOGY
2.2 RESEARCH DESIGN:
The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data
Exploratory and descriptive design has been used in this research
32 | P a g e
Exploratory Research
Exploratory research is defined as the initial research into a hypothetical or theoretical idea. This
is where a researcher has an idea or has observed something and seeks to understand more about it.
An exploratory research project is an attempt to lay the groundwork that will lead to future studies
or to determine if what is being observed might be explained by a currently existing theory. Most
often, exploratory research lays the initial groundwork for future research.
Descriptive Research
Descriptive research includes surveys and fact-finding enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present.
Once the groundwork is established, the newly explored field needs more information. The next
step is descriptive research, defined as attempts to explore and explain while providing additional
information about a topic. This is where research is trying to describe what is happening in more
detail, filling in the missing parts and expanding our understanding. This is also where as much
information is collected as possible instead of making guesses or elaborate models to predict the
future. Based on the objectives of study as a marketer uses descriptive and exploratory research
method. Descriptive study will be taken up when the customer is interested in knowing the present
status regarding a particular area of interest eg: present data of reliance top performing schemes
The conclusions are arrived at from the collected secondary data.
Data collection:
Data collection is the process of gathering and measuring information on targeted variables in an
established systematic fashion, which then enables one to answer relevant questions and evaluate
outcomes
Unstructured interviews and scheduling for primary data, secondary data through internet, company
literature etc.
Sampling Method
A sampling method is a procedure for selecting sample members from a population.
Nonrandom / purposive – Individuals visiting the banks attached
Judgmental/Purposive sampling
in this type of sampling, subjects are chosen to be part of the sample with a specific purpose in
33 | P a g e
mind. With judgmental sampling, the researcher believes that some subjects are fit for the research
compared to other individuals. This is the reason why they are purposively chosen as subjects.
Any sampling method where some elements of the population have no chance of selection, or where
the probability of selection cannot be accurately determined.
“THEY DON’T HAVE THE PURPOSE OF INVESTING IN MUTUAL FUND” After getting
awareness about returns and performance if they convinced they will invest
SAMPLING UNITS
A sampling unit is one of the units into which an aggregate is divided for the purpose of sampling,
each unit being regarded as individual and indivisible when the selection is made
SAMPLING UNITS: BANKS
1) Federal Bank
2) KVB BANK
3) Equities Small Finance Bank
Data Collection Instrument: Questionnaire
CHAPTER 3
DATA ANALYSIS AND INTERPRETATION
Data analysis: Trend analysis for performance of schemes, analysis of customer’s perceptions
towards mutual fund and RNLAM
TABLE NO: 3.1
Scheme Name Crisil Category Latest 1 year

Ranking NAV Return
(%)
Sector -
Not
Reliance Banking Fund (G) Banking & 244.44 47.3
Ranked
Finance
Sector -
Reliance Banking Fund - Direct Not
Banking & 250.73 48.5
(G) Ranked
Finance
34 | P a g e
Diversified
Reliance Equity Oppor - IP (G) Rank 5 21.95 21.5
Equity
Diversified
Reliance Equity Oppor - RP (G) Rank 5 85.03 26.8
Equity
Reliance Equity Oppor -Direct Diversified
Rank 5 87.90 27.8
(G) Equity
Reliance Equity Savings Fund Not Diversified
11.74 14.5
(G) Ranked Equity
Reliance Focused Large Cap -

Rank 3 Large Cap 28.34 30.6
RP (G)
Reliance Focused Large Cap-Dir
Rank 3 Large Cap 29.20 31.6
(G)
Gilt Long
Reliance Gilt Sec. - Direct (G) Rank 1 23.08 14.7
Term
Gilt Long
Reliance Gilt Sec. - IP (G) Rank 1 22.23 13.5
Term
Gilt Long
Reliance Gilt Sec. - RP (G) Rank 1 22.06 13.4
Term
Reliance Gilt Security - Direct Not Gilt Long
12.90 14.7
(Bonus) Ranked Term
Reliance Gilt Security - RP Not Gilt Long
12.66 13.4
(Bonus) Ranked Term
Fund of Funds
Reliance Gold Savings - Direct Not
- Commodity 12.46 -6.4
(G) Ranked
oriented
Fund of Funds
Not
Reliance Gold Savings Fund (G) - Commodity 12.24 -6.8
Ranked
oriented
Diversified
Reliance Growth Fund - RP (G) Rank 3 1,025.11 32.5
Equity
Reliance Growth Fund -Direct Diversified
Rank 3 1,056.65 33.5
(G) Equity
Debt Long
Reliance Income Fund (G) Rank 3 53.50 10.0
Term
Reliance Income Fund - Direct Debt Long
Rank 3 55.58 11.0
(G) Term
Reliance Liquid - Cash (G) Rank 5 Liquid 2,561.72 6.1
Reliance Liquid - Cash -Direct
Rank 5 Liquid 2,646.75 7.2
(G)
Reliance Liquid - TP - Direct Not
Liquid 4,000.26 7.2
(G) Ranked
Reliance Liquid - TP - IP (G) Rank 3 Liquid 3,986.37 7.1
Not
Reliance Liquid Fund TP (G) Liquid 3,729.55 6.2
Ranked
Reliance Liquidity - Direct (G) Rank 3 Liquid 2,471.31 7.1
Reliance Liquidity Fund (G) Rank 3 Liquid 2,461.93 7.0
Reliance Media & Enter. -Direct Not
Sector - Others 69.37 23.6
(G) Ranked
Not
Reliance Media & Entertain (G) Sector - Others 67.12 22.7
Ranked
Reliance Medium Term - Direct Ultra Short
Rank 3 34.99 9.0
(G) Term Debt
Reliance Medium Term Fund Ultra Short
Rank 3 34.39 8.4
(G) Term Debt
Reliance Mid & Small Cap - Small & Mid
Rank 4 45.52 35.1
Direct (G) Cap
35 | P a g e
Reliance Mid & Small Cap Fund Small & Mid
Rank 4 43.96 33.8
(G) Cap
MIP
Reliance MIP (G) Rank 4 39.17 12.2
Aggressive
MIP
Reliance MIP - Direct (G) Rank 4 40.67 13.1
Aggressive
Ultra Short
Reliance Money Manager (G) Rank 3 2,260.65 7.8
Term Debt
Not Ultra Short
Reliance Money Mgr -Direct (G) 2,295.82 8.2
Ranked Term Debt
Not Ultra Short
Reliance Money Mgr-RP (G) 2,186.59 7.3
Ranked Term Debt
Not Diversified
Reliance NRI Equity - Direct (G) 83.68 31.2
Ranked Equity
Not Diversified
Reliance NRI Equity Fund (G) 81.61 30.4
Ranked Equity
Sector -
Not
Reliance Pharma Fund (G) Pharma & 131.03 -1.8
Ranked
Healthcare
Sector -
Reliance Pharma Fund - Direct Not
Pharma & 135.66 -0.9
(G) Ranked
Healthcare
Debt Oriented
Reliance RF -Income Generation Not Hybrid
11.63 11.3
(G) Ranked Specialty
Funds
Debt Oriented
Reliance RF -Income Generation Not Hybrid
12.02 12.9
- DP (G) Ranked Specialty
Funds
Equity
Oriented
Reliance RF -Wealth Creation Not
Hybrid 11.91 23.3
(G) Ranked
Specialty
Funds
Debt Short
Reliance Short Term - Direct (G) Rank 3 31.86 9.1
Term
Debt Short
Reliance Short Term Fund (G) Rank 3 31.05 8.5
Term
Small & Mid
Reliance Small Cap - Direct (G) Rank 2 39.39 47.5
Cap
Small & Mid
Reliance Small Cap Fund (G) Rank 2 37.93 45.9
Cap
Reliance Tax Saver (ELSS) (G) Rank 3 ELSS 57.60 33.1
Reliance Tax Saver(ELSS)-
Rank 3 ELSS 59.47 34.2
Direct (G)
Reliance Top 200 - Direct (G) Rank 2 Large Cap 30.33 33.7
Reliance Top 200 Fund-RP (G) Rank 2 Large Cap 29.26 32.3
Reliance Vision Fund - Direct Diversified
Rank 4 45.97 14.9
(D) Equity
Diversified
Reliance Vision Fund - RP (G) Rank 4 517.63 26.1
Equity
36 | P a g e
OBJECTIVES
Primary Objectives
• The main objectives of research is to find awareness regarding mutual fund among earning people.
• Marketing of mutual funds in a given area and highlight the benefits to customers.
Secondary-objectives
• To find how much people investing in mutual fund.
• To find which mutual fund they are investing.
• To find which way or which option people like while investing in mutual fund.
QUESTIONNAIRE
1) What is your age?

a) 20-29 b) 30-39 c) 40-49 d) 50 Above
2) What is your Occupation?
a) Student (b) Business (c) Private (d) profession (e) others
3) What is your monthly family in come?
a) 10000-20000 (b) 20001-30000 (c) 30001-40000 (d) above 40001
4) You have any idea about Mutual Fund?
a) Aware (b) unaware
5) From which source you came to know about Mutual Fund?
a) Peer group (b) Bank (c) TV/ newspaper (d) Financial Advisor
6) Have you ever invest in mutual fund?
a) Yes b) No
7) Which way you like to invest in mutual fund?
a) Lump sum b) SIP
8) Where you prefer to invest?
a) Saving (b) FD (c) Insurance (d) Mutual Fund
9) Which is your preference while investing?
a) Low Return (b) High Return (c) Liquidity (d) Trust
10) Which Mutual Fund Company you will prefer to invest?
(a) Reliance (b) SBI (c) Birla (d) others
37 | P a g e
11) To how much extent are you satisfied with the service offered by your investment
company regarding MF?
a) Extremely satisfied b)Satisfied c) Neutral d) Dissatisfied e) Extremely Dissatisfied
CHAPTER 3
ANALYSIS
3.1 INTERPRETATION WITH THE QUESTIONNAIRE
Interpretation is the act of explaining, reframing, or otherwise showing own understanding of
something.
 The act or the result of interpreting: explanation

 a particular adaptation or version of a work, method, or style
Ques1. What is your age?

Ans) a) 20-29 b) 30-39 c) 40-49 d) 50 Above
No of
Age respondents Percentage
20-29 13 13%
30-39 46 46%
40-49 35 35%
50 above 6 6%
what is your age
50
40
30
46
20 35
10 13
6
0
20-29 30-39 40-49 50 above
Fig. No 3.1
Customer distribution based on Age
 46% of respondents are 30-39 years old.
 35% of the respondents lie between 40-49 years of age.
38 | P a g e
 46% of respondents are middle age people they invest in mutual fund for future purpose (long term
investment). So the return from the investment will be very high when they invest at the age of
middle.
Ques.2 what is your Occupation?
Ans) a) student (b) Business (c) Private (d) profession (e) others
No of
Occupation respondents Percentage
Student 7 7%
Business 28 28%
Private 30 30%
Profession 18 18%
Others 17 17%
Customer distribution based on occupation
occupation
30
28
30
25
18 17
20
15
7
10
5
Series1
0
student business private profession others
Fig. No 3.2
Analysis
 30% of the respondents (customers) are private employees.
 28% of respondents are business people.
 18% of respondents are profession.
 17% of respondents have responded that they belong to others category, while the remaining 7%
of respondents are students.
39 | P a g e
 30% of respondents are from private sector that means most of them believe that mutual fund can
give security or better return in future.
Ques.3 how much is your monthly family income?

ANS) a) 10000-20000 (b) 20001-30000 (c) 30001-40000 (d) above 40001
Customer distribution Based on income
No of
Income respondent Percentage
10000-
20000 16 16%
20001-
30000 31 31%
30001-
40000 32 32%
Above
40001 21 21%
income
40 31 32
30 21
16
20
10
0
10000-20000 20001-30000 30001-40000 above 40001
Fig. 3.3
Analysis
 31% of respondents have responded that their income between 20001-30000

 32% of respondents’ income lies between 30001-40000
40 | P a g e
 62% of respondents’ income is in between 20001-40000 and the remaining 16% of people get
salary below 20000.
Ques.4 Are you aware about Mutual Fund?

(a) aware (b) unaware
No of
Awareness respondents Percentage
Aware 63 63%
Unaware 37 17%
Awareness of mutual fund
70
60
50
40
63
30
37
20
10
0
aware unaware
Fig. 3.4
Analysis
 63% of respondents are aware about the mutual fund and the rest 37% of respondents are
unaware about the mutual fund.
 Most of the respondents are aware or heard about mutual funds, not everyone invested in mutual
funds. But the customers don’t the deep knowledge or the what are the benefit they getting from
the mutual fund, they are unaware about the mutual fund.
41 | P a g e
Ques.5 from which source you came to know about Mutual Fund?
(a) Peer group (b) Bank (c) TV/ newspaper (d) Financial Advisors
no of
Sources respondent percentage
Peer group 15 15%
Bank 67 67%
TV/news
paper 14 14%
Financial
advisor 4 4%
70
60
50
40
67
30
20
10 15 14
1 4
0
peer group bank tv/news paper financial advisor
Series1 Series2
Fig no: 3.5

Analysis
42 | P a g e
 67 % of respondents are aware about the mutual fund products through banks, and 15% of
respondents are known mutual funds through peers and the remaining 14% and 4% are aware of
mutual fund through TV and financial advisors.
 Bank is the best place to promote mutual fund, because people believe banks than sales
executives or an advisor so it is the best place to create awareness and promote mutual funds.
6) Have you ever invest in mutual fund?

a) Yes b) No
Have ever invest in mutual fund
34%
yes
66%
No
Analysis
 From all the respondents 63% respondents are aware about mutual fund and among all of them
only 34% have invest in the mutual fund.
 From 100% of respondents only 34% of respondents have invested in mutual funds and the remaining 66%
of people have not invested in mutual fund.
 Most of the respondents are known about mutual fund but less number of respondents only invested in
mutual fund that means respondents are not aware about the mutual fund benefit.
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7) Which way you like to invest in mutual fund?
a) Lump sum b) SIP
Lump Sum
20%
SIP
80%
CHART TITLE
Analysis
80% of the respondents like to invest in Systematic Investment Plan and 20% in Lump Sum, which
shows that respondents are more likely to invest in Systematic Investment Plan rather than Lump
Sum. 80% of respondents are preferred SIP.
44 | P a g e
Ques.8 where you prefer to invest?
(a) Savings (b) FD (c) Insurance (d) Mutual Fund
Investment Respondents percentage

Savings 25 25%
FD 38 38%
Insurance 7 7%
Mutual
Fund 34 34%
Customer interest on investments
40
35
30
25
20
15
10
5
0
savings fd insurance mutual fund
Fig. No. 3.6
Analysis
.
45 | P a g e
 38% of respondents prefer to invest in Fixed Deposit and 34% of respondents prefer to invest in
Mutual Funds than savings and insurance. 25% and 7% respondents prefer to invest savings and
insurance. Most of the customer prefer to invest in FD because people do not know much benefit
getting from mutual fund like tax benefits, high return etc..
Ques.9 what is your preference while investing?

(a) Low Return (b) High Return (c) Liquidity d) risk
Preference Respondents percentage

Low risk 14 14%
High return 55 55%
Liquidity 25 25%
Risk 6 6%
Customer preference while investing
60
50
40
30
20
10
0
Low risk High return Liquidity Risk
Fig: 3.7
Analysis
55% of respondents prefer to get high return and 6% respondents not ready to take risk at all,
remaining 25% of respondents prefer the liquidity and 14% respondents not ready to invest in any
risk investments. Good percentage of customer require high return but they are not willing to take
risk.
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Ques.10 Which Mutual Fund Company you will prefer to invest?
(b) Reliance (b) SBI (c) Birla (d) others
company Respondents Percentage

RELIANCE 16 28%
SBI 15 17%
Birla 24 46%
others 9 9%
Customer interest on mutual fund companies
30
25
20
15
10
5
0
RELIANCE SBI BIRLA OTHERS
Fig .No. 3.8
Analysis
 46% of respondents prefer to invest in Birla Mutual fund and 27% in Reliance.
 17% of respondent prefer to invest in SBI Mutual Fund.
 Remaining 9% of people prefer to invest in other mutual funds.
47 | P a g e
 Customers do not believe Reliance mutual fund, people have the fear to invest in Reliance mutual
fund because most of the customers conversion from banks so people need to invest bank related
companies like SBI, HDFC, ICICI etc..
Ques.11 To how much extent are you satisfied with the service offered by your investment
company regarding MF?
respondent percentage
Extremely satisfied 8 23.5294118
Satisfied 11 32.3529412
Neutral 6 17.6470588
Dissatisfied 6 17.6470588
Extremely
dissatisfied 3 8.82352941
To how much extent are you satisfied with the service offered by your
investment company regarding MF?
11
12
10 8
8 6 6
6 3
4
2
0
Extremely satisfied neutral dissatisfied extremely
satisfied dissatisfied
Fig. No. 3.9
48 | P a g e
Analysis
 11% of investors are satisfied with their investment in mutual funds and 3% of investors are
extremely dissatisfied with their investment.
 Only 8% of respondents are completely satisfied with their investment.
 6% of investors are neutral and other 6% of respondents are dissatisfied with their investment.
COMPARATIVE ANALYSIS WITH OTHER COMPANIES

Diversified large cap category
TABLE NO. 3.2
1 Year 3 Years 5 Years 10 Years

Diversified Large Cap Category SIP Present SIP Present SIP Present SIP Present
Yield Yield Yield Yield
Invest Value Invest Value Invest Value Invest Value
(SIP) (SIP) (SIP) (SIP)
(` Lacs) (`Lacs) (` Lacs) (`Lacs) (` Lacs) (`Lacs) (` Lacs) (`Lacs)
S&P BSE Sensex 1.20 1.31 16.71 3.60 4.00 7.02 6.00 7.75 10.19 12.00 19.28 9.17
Nifty 50 1.20 1.31 17.97 3.60 4.08 8.38 6.00 7.94 11.15 12.00 19.86 9.73
Reliance Top 200 Fund 1.20 1.36 25.67 3.60 4.39 13.35 6.00 9.31 17.61 NA NA NA
Reliance Vision Fund 1.20 1.32 19.94 3.60 4.26 11.23 6.00 8.98 16.13 12.00 22.74 12.28
Birla Sun Life Frontline Equity
1.20 1.33 21.59 3.60 4.41 13.68 6.00 9.32 17.67 12.00 26.80 15.35
Fund
Franklin India Blue chip 1.20 1.31 17.07 3.60 4.29 11.80 6.00 8.65 14.62 12.00 23.88 13.20
HDFC Equity Fund 1.20 1.37 26.93 3.60 4.36 12.87 6.00 9.15 16.91 12.00 26.39 15.07
HDFC Top 200 1.20 1.37 27.37 3.60 4.38 13.10 6.00 8.93 15.92 12.00 25.09 14.12
ICICI Prudential Focused Bluechip
1.20 1.33 21.36 3.60 4.35 12.64 6.00 8.96 16.04 NA NA NA
Equity Fund
UTI Opportunities Fund 1.20 1.29 14.84 3.60 4.04 7.66 6.00 8.06 11.78 12.00 23.76 13.10
Funds which invest a larger proportion of their corpus in companies with large market capitalization
are called large cap funds. A diversified large cap category invests in companies regardless of size
and sector. It diversifies investments across the stock market in a bid to maximize gains for investors.
They are offered by unit-linked insurance plans / ULIPs, mutual funds and other investment firms.
The criteria for large cap companies may vary. However, these are generally the ones with huge
market capitalization. Large cap funds are known to offer stable and sustainable returns over a period
of time, but might be outperformed by small and mid-cap funds, which have higher risk exposure.
49 | P a g e
DIVERSIFIED MID & SMALL CAP FUND
Mutual funds which diversify investments in between mid and small cap companies are termed as
mid and small cap funds. The proportion of investments between midcap and small cap may vary
from fund to fund.
TABLE No. 3.3

Diversified Mid & Small Cap SIP Present SIP Present SIP Present SIP Present
Category Invest Value Invest Value Invest( Value Invest Value
(` Lacs) (`Lacs) (` Lacs) (`Lacs) ` Lacs) (`Lacs) (` Lacs) (`Lacs)
S&P BSE MidSmallCap 1.20 1.40 31.82 3.60 4.78 19.33 6.00 10.12 21.05 12.00 25.40 14.35
S&P BSE SmallCap 1.20 1.42 35.16 3.60 4.72 18.44 6.00 10.22 21.46 NA NA NA
S&P BSE 100 1.20 1.33 20.06 3.60 4.16 9.61 6.00 8.14 12.18 12.00 20.37 10.21
Reliance Growth Fund 1.20 1.37 27.38 3.60 4.56 16.04 6.00 9.75 19.51 12.00 26.25 14.96
Reliance Mid & Small Cap Fund 1.20 1.37 27.10 3.60 4.72 18.47 6.00 11.12 24.97 12.00 31.85 18.56
Reliance Small Cap Fund 1.20 1.45 40.38 3.60 5.22 25.74 6.00 13.60 33.46 NA NA NA
Birla Sun Life Mid Cap Fund 1.20 1.39 30.49 3.60 4.89 20.97 6.00 11.06 24.75 12.00 31.44 18.32
ck Micro Cap Fund 1.20 1.42 35.69 3.60 5.50 29.58 6.00 14.26 35.50 NA NA NA
DSP BlackRock Small and Midcap
1.20 1.42 35.61 3.60 5.08 23.71 6.00 11.73 27.21 12.00 36.16 20.91
Fund
Franklin India Prima Fund 1.20 1.38 29.17 3.60 4.91 21.23 6.00 11.69 27.06 12.00 36.37 21.01
Franklin India Smaller Companies
1.20 1.38 29.75 3.60 5.05 23.23 6.00 12.85 31.05 12.00 41.10 23.28
Fund
HDFC Mid-Cap Opportunities
1.20 1.41 33.82 3.60 4.99 22.43 6.00 11.79 27.40 NA NA NA
Fund
IDFC Premier Equity Fund 1.20 1.31 18.17 3.60 4.36 12.80 6.00 9.69 19.25 12.00 32.19 18.75
IDFC Sterling Equity Fund 1.20 1.42 36.58 3.60 4.69 18.04 6.00 10.00 20.55 NA NA NA
Sundaram Select Midcap 1.20 1.38 29.02 3.60 4.97 22.18 6.00 11.76 27.31 12.00 36.40 21.03
TABLE No. 3.3

In diversified large cap category
The best performing funds for long term growth as per this comparative analysis
BIRLA SUN LIFE FRONTLINE EQUITY FUND
HDFC TOP 200 FUND
RELIANCE VISION FUND
RELIANCE TOP 200 FUND
50 | P a g e
MULTI CAP FUNDS
Multi cap funds are diversified mutual funds that can invest in companies across market
capitalization. In other words, they are market capitalization agnostic and invest across the breadth of
the equity market.
TABLE NO. 3.4

Diversified Multi Cap Category SIP Present SIP Present SIP Present SIP Present
(SIP) (2SI (SIP) (SIP)
P)
S&P BSE 200 1.20 1.33 21.24 3.60 4.24 10.96 6.00 8.40 13.45 12.00 21.09 10.86
Reliance Equity Opportunities
1.20 1.33 21.00 3.60 4.16 9.56 6.00 8.87 15.65 12.00 28.44 16.46
Fund
Reliance Regular Savings Fund –
1.20 1.35 24.27 3.60 4.42 13.79 6.00 9.34 17.74 12.00 26.02 14.80
Equity
Franklin India High Growth
1.20 1.35 24.26 3.60 4.57 16.12 6.00 10.63 23.10 NA NA NA
Companies Fund
Franklin India Flexi Cap Fund 1.20 1.30 16.02 3.60 4.29 11.73 6.00 9.32 17.66 12.00 26.48 15.13
HDFC Growth Fund 1.20 1.36 25.15 3.60 4.40 13.56 6.00 8.78 15.24 12.00 23.60 12.98
ICICI Prudential Dynamic Plan 1.20 1.38 29.24 3.60 4.51 15.24 6.00 9.35 17.80 12.00 26.80 15.35
ICICI Prudential Value Discovery
1.20 1.31 16.94 3.60 4.39 13.31 6.00 10.27 21.66 12.00 35.32 20.48
Fund
L&T Equity Fund 1.20 1.34 22.81 3.60 4.36 12.91 6.00 9.12 16.77 12.00 25.46 14.40
DESCRIPTION
These funds invest in a mix of midcap and small cap stocks. Due to their exposure in high beta stocks,
they are positioned on a high risk return trade-off plane compared to a large cap fund. Mid and small
cap funds are those which have at least 60 per cent of assets in mid cap companies over the last 3
years. These funds can touch soaring heights when the markets are favorable while can also wipe out
fortunes when the tide reverses.
IN THIS MID & SMALL CAP FUNDS THE BEST PERFORMING SCHEMES ARE
DSP BLACK ROCK MICROCAP FUND

RELIANCE SMALL CAP FUND
FRANKLIN INDIA SMALLER COMPANIES FUND
51 | P a g e
SECTOR SPECIFIC CATEGORY
A stock mutual, exchange-traded or closed-end fund that invests solely in businesses that operate in
a particular industry or sector of the economy. Because the holdings of this type of fund are in the
same industry, there is an inherent lack of diversification associated with these funds.
TABLE. No. 3.5

SIP Present SIP Present SIP Present SIP Present
Sector Specific Category Invest Value Invest Value Invest Value Invest Value
Nifty Bank 1.20 1.39 31.26 3.60 4.49 14.87 6.00 9.19 17.11 12.00 26.14 14.88
Nifty Media 1.20 1.40 32.82 3.60 4.88 20.84 6.00 9.79 19.70 12.00 23.23 12.68
S&P BSE Power 1.20 1.37 26.66 3.60 4.10 8.61 6.00 7.22 7.32 12.00 12.50 0.80
S&P BSE HC 1.20 1.18 -3.59 3.60 3.69 1.66 6.00 8.16 12.26 12.00 29.10 16.89
Reliance Banking Fund 1.20 1.44 39.38 3.60 4.78 19.33 6.00 10.09 20.93 12.00 31.71 18.48
Reliance Diversified Power Sector
1.20 1.52 53.65 3.60 4.81 19.70 6.00 9.53 18.58 12.00 19.46 9.35
Fund
Reliance Media & Entertainment
1.20 1.35 24.18 3.60 4.49 14.89 6.00 9.11 16.76 12.00 25.38 14.34
Fund
Reliance Pharma Fund 1.20 1.18 -3.47 3.60 3.82 3.87 6.00 8.58 14.27 12.00 34.38 19.98
HDFC Infrastructure Fund 1.20 1.33 21.40 3.60 4.14 9.38 6.00 8.70 14.85 NA NA NA
ICICI Prudential Banking and
1.20 1.48 46.05 3.60 5.19 25.26 6.00 11.46 26.24 NA NA NA
Financial Services Fund
ICICI Prudential Infrastructure
1.20 1.39 30.93 3.60 4.33 12.39 6.00 8.87 15.65 12.00 20.22 10.07
Fund
SBI Pharma Fund 1.20 1.20 -0.27 3.60 3.99 6.76 6.00 9.42 18.11 12.00 34.80 20.20
Sundaram Financial Services
1.20 1.40 32.61 3.60 4.63 17.00 6.00 9.31 17.61 NA NA NA
Opportunities Fund
UTI Banking Sector Fund 1.20 1.40 32.47 3.60 4.67 17.65 6.00 9.45 18.22 12.00 26.85 15.39
UTI Pharma and Healthcare Fund 1.20 1.20 -0.77 3.60 3.76 2.90 6.00 8.21 12.51 12.00 28.28 16.35
When people think of investing in an equity mutual fund, the most commonly asked question them
is which is the best fund to invest. Actually the first question should be which category is most
appropriate to choose the fund from – whether it should be large cap, midcap, small cap, multi cap,
or sectorial fund category. Each such category has its own advantages - while large-cap funds can
ensure stability in the portfolio, midcap and small cap funds can potentially provide exceptionally
high returns, and sectorial funds can provide a kicker to the returns if the going is good for the
52 | P a g e
sector.
Nevertheless among all these categories the one that stands out due to its considerable flexibility to
invest anywhere is multi cap category. Multi cap funds are diversified mutual funds that can invest
in companies across market capitalization. In other words, they are market capitalization agnostic
and invest across the breadth of the equity market. This multi cap funds are able to take advantage
of the opportunities across market cap for the investment.
IN DIVERSIFIED MULTI CAP FUNDS THE BEST PERFORMING FUNDS ARE
ICICI PRUDENTIAL VALUE DISCOVERY FUND

RELIANCE EQUITY OPPORTUNITIES FUND
ICICI PRUDENTIAL DYNAMIC PLAN
DISCRIPTION
These funds tend to increase substantially in price when there is an increased demand for the product
or service offering provided by the businesses in which the funds invest. On the other hand, if there
is a downturn in the specific sector in which a sector fund invests, the fund will often face heavy
losses as a result of the lack of diversification in its holdings
IN SECTOR SPECIFIC CATEGORY THE BEST PERFORMING FUNDS ARE.

SBI PHARMA FUND
RELIANCE PHARMA FUND
TAX SAVER CATEGORY

Taxes saving mutual funds are just like any other mutual funds with the added bonus that investments
made in them are eligible for tax benefits under section 80C. Most of the tax saving mutual funds are
ELSS schemes and make investments in equity markets.
TABLE NO: 3.6

Tax Saver Category Yield Yield Yield Yield
Invest Value Invest Value Invest( Value Invest( Value
(` Lacs) (`Lacs) (` Lacs) (`Lacs) ` Lacs) (`Lacs) ` Lacs) (`Lacs)
S&P BSE 100 1.20 1.33 20.06 3.60 4.16 9.61 6.00 8.14 12.18 12.00 20.37 10.21
Reliance Tax Saver (ELSS) Fund 1.20 1.37 28.23 3.60 4.52 15.39 6.00 10.41 22.21 12.00 31.18 18.16
Axis Long Term Equity Fund 1.20 1.30 16.16 3.60 4.34 12.60 6.00 10.07 20.83 NA NA NA
Birla Sun Life Tax Relief 96 1.20 1.35 23.58 3.60 4.59 16.47 6.00 10.15 21.19 NA NA NA
HDFC Taxsaver Fund 1.20 1.40 32.79 3.60 4.46 14.47 6.00 9.38 17.94 12.00 26.21 14.93
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ICICI Prudential Long Term Equity
1.20 1.35 24.04 3.60 4.44 14.15 6.00 9.67 19.18 12.00 29.02 16.83
Fund (Tax Saving)
SBI Magnum Tax Gain Scheme 93 1.20 1.32 18.34 3.60 4.25 11.13 6.00 9.02 16.32 12.00 24.30 13.53
Sundaram Taxsaver 1.20 1.35 24.88 3.60 4.56 16.01 6.00 9.40 18.02 12.00 24.72 13.84
DESCRIPTION
ELSS schemes tend to come with a lock-in period of 3 years, which means that the investment cannot
be withdrawn for till the end of that time. If the investment is being made in monthly installments
(SIP) then the lock-in period for each installment is 3 years. For example, if the first investment was
made on the 1st of Jan 2015 and the second one on 1st of February 2015 then on the 1st of January
2018 ONLY the first installments will get unlocked. The second installment will remain locked till
the 1st of February 2018.
1. When it comes time to withdrawals, investors can see how many units have gotten unlocked and
redeem them at the current NAV. The NAV (Net Asset Value) is the amount you will get for each
unit. To make withdrawals, you will need to know the number of available units and submit a claim
form to the mutual fund provider. They will credit the amount to your account as soon as it is
processed.
IN TAX SAVER CATEGORY THE BEST PERFORMING SCHEMES ARE

RELIANCE TAX SAVER (ELSS) FUND
ICICI PRUDENTIAL LONG TERM EQUITY FUND (TAX SAVINGS)
TITLE. COMPARITIVE ANALYSIS OF BALANCED CATEGORY

A balanced fund combines a stock component, a bond component and sometimes a money
market component in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix
of stocks and bonds that reflects either a moderate, or higher equity, component, or conservative, or
higher fixed-income, component orientation.
TABLE NO: 3.7

Balanced Category Yield Yield Yield Yield
Crisil Balanced Fund - Aggressive
1.20 1.29 14.83 3.60 4.14 9.26 6.00 7.90 10.97 12.00 19.89 9.76
Index
Reliance Regular Savings Fund –
1.20 1.32 18.96 3.60 4.40 13.43 6.00 9.15 16.91 12.00 26.94 15.45
Balanced
Birla Sun Life Balanced 95 1.20 1.33 20.51 3.60 4.49 14.98 6.00 9.42 18.09 12.00 27.01 15.49
DSP BlackRock Balanced Fund 1.20 1.32 19.13 3.60 4.50 15.01 6.00 9.16 16.98 12.00 24.49 13.67
HDFC Balanced Fund 1.20 1.33 21.23 3.60 4.49 14.87 6.00 9.57 18.77 12.00 29.47 17.12
HDFC Prudence Fund 1.20 1.36 26.24 3.60 4.48 14.71 6.00 9.38 17.91 12.00 27.92 16.11
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ICICI Prudential Balanced
1.20 1.29 14.95 3.60 4.28 11.65 6.00 8.64 14.59 12.00 24.43 13.62
Advantage Fund
ICICI Prudential Balanced Fund 1.20 1.35 24.27 3.60 4.56 15.95 6.00 9.62 18.97 12.00 27.67 15.95
Tata Balanced Fund 1.20 1.29 13.88 3.60 4.30 11.87 6.00 9.15 16.92 12.00 27.07 15.54
UTI Balanced Fund 1.20 1.33 20.14 3.60 4.35 12.74 6.00 8.69 14.81 12.00 22.78 12.31
DESCRIPTION
Balanced funds are geared toward investors who are looking for a mixture of safety, income and
modest capital appreciation. The amounts this type of mutual fund invests into each asset class usually
must remain within a set minimum and maximum. Although they are in the "asset allocation" family,
balanced fund portfolios do not materially change their asset mix. This is unlike life-cycle, target-
date and actively managed asset-allocation funds, which make changes in response to an investor's
changing risk-return appetite and age or overall investment market conditions.
IN THIS CATEGORY THE BEST PERFORMING SCHEMES ARE
HDFC BALANCED FUND
ICICI PRUDENTIAL BALANCED FUND
TATA BALANCED FUND
RELIANCE REGULAR SAVINGS FUND (BALANCED OPTION)
MONTHLY INCOME PLAN (MIP) CATEGORY

A type of investment vehicle that provides a specified monthly payment to the investor. This monthly
payment is intended to be a stable form of income and is therefore typically suited for retired persons
or senior citizens without other substantial sources of monthly income.
TABLE No. 3.8

MIP Category Yield Yield Yield Yield
Crisil MIP Blended Fund Index 1.20 1.26 10.11 3.60 4.19 10.15 6.00 7.77 10.28 12.00 19.18 9.08
Reliance Monthly Income Plan 1.20 1.26 9.96 3.60 4.16 9.66 6.00 7.87 10.80 12.00 21.06 10.84
Birla Sun Life MIP 1.20 1.25 7.29 3.60 4.10 8.63 6.00 7.56 9.20 12.00 18.89 8.78
DSP BlackRock MIP Fund 1.20 1.28 11.88 3.60 4.20 10.32 6.00 7.83 10.62 12.00 19.99 9.86
HDFC Monthly Income Plan - LTP 1.20 1.28 12.89 3.60 4.25 11.10 6.00 8.09 11.93 12.00 21.33 11.08
ICICI Prudential MIP 1.20 1.27 10.71 3.60 4.17 9.73 6.00 7.81 10.50 12.00 19.71 9.59
ICICI Prudential MIP 25 1.20 1.28 13.23 3.60 4.28 11.63 6.00 8.18 12.35 12.00 21.11 10.89
UTI Monthly Income Scheme 1.20 1.26 9.43 3.60 4.14 9.23 6.00 7.66 9.72 12.00 19.27 9.16
DESCRIPTION
A monthly income plan can be thought of as a budget for a retirement income. Rather than reaching
retirement and spending your nest egg by making random withdrawals of varying amounts, a monthly
55 | P a g e
income plan can ensure you receive a stable amount of funds each month to spend, which limits the
risk of over-spending. In this regard, an MIP is similar in many ways to an annuity.
IN THIS CATEGORY THE TOP PERFORMING SCHEMES ARE
ICICI PRUDENTIAL MIP 25

RELIANCE MONTHLY INCOME PLAN
HDFC MONTHLY INCOME PLAN –LTP
CHAPTER 4
FINDINGS, RECOMMENDATIONS AND CONCLUSIONS
FINDINGS
 Among all the respondents 63% are aware about mutual fund and 37% are not aware about
mutual fund.
 From all aware respondents only 34 respondents have invest in mutual fund.
 60 respondents income is in between 20001-40000.
 From all the respondents 67% respondents have awareness regarding mutual fund through bank
and less no. of respondents are aware through financial advisor.
 80% of respondents are investing in lump sum and 20% are investing in systematic investment
plan.
 38% of respondents have the preference to invest in FD and 34% interest in mutual fund.
 46% of respondents prefer to invest in Birla than Reliance mutual fund.
 Among all the respondents 33% are satisfied with their investment in mutual fund and 24% are
extremely satisfied with their investment. Only 8% are extremely dissatisfied with their
investment.
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RECOMMENDATIONS
There is high potential market for mutual fund investors in Bangalore city, but this market need to be
explored as investors are still habituated to invest their money in mutual fund
• As per survey bank creates higher awareness so the mutual fund companies should more collaborate
with the bank.
• The company should organize seminar to give information about mutual fund and should distribute
brochures having detail of schemes of mutual fund.
• The company should appoint 2 more sales executives to meet banks to create relationship and
awareness with the staffs.
• The company should attract the lower income people to invest in mutual fund.
• The company should give information regarding Tax benefit to invest into mutual fund
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LIMITATIONS OF THE RESEARCH
 This research reflect on individual customer in Bangalore only. So findings and suggestions given
on the basis of this research cannot be extrapolated to the entire population.
 Sample size is 100 which is very small that is not enough to study the awareness of consumers.
 Respondents are not sincere and care full to fill up the questionnaires so we cannot find right
solution.
 The study might consist of the respondents’ bias answer.
 It take much time to go in a different areas and fill up questionnaire so the timings are also limited
to make the project.
 In India people are not much care full and educated regarding investment plan so to do this type of
research is little hard.
CONCLUSIONS
After making the whole report I am concluded that this project measures the awareness of mutual
fund and its service. As mutual fund have good option and schemes, so we can grow it with creating
the awareness among the people. It is also good for those who want to make their future in it. For
that the only thing you need is to give time to your money to grow, they will surely give good
returns and the other thing is the knowledge of the all product schemes.
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The industry can aware more investors to invest in mutual fund. They can do these through
seminars, advertisement etc. They can also increase their sales by collaborating with many banks.
They can also make more advisors by giving them more commission.
REFERENCES
www.reliancemutualfund.com
www.mutualfundsindia.com
www.moneycontrol.com
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Awareness and Marketing of Mutual Fund at Reliance Nippon Life Asset Management LTD

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AWARENESS AND MARKETING OF MUTUAL

FUND AT RELIANCE NIPPON LIFE ASSET

A SUMMER INTERNSHIP REPORT

(ROLL NO. 17P006)

POST GRADUATE DIPLOMA IN MANAGEMENT/

FIREBIRD INSTITUTE OF RESEARCH IN MANAGEMENT

Certified that the summer internship project report “AWARENESS AND

by myself under the general supervision of my Industry and Internal supervisors.

giving their details in the references.

required details in the references.

Fig. 1.1 MUTUAL FUND OPERATION FLOW CHART

Table No. 3.1 GROWTH IN ASSETS UNDER MANAGEMENT

MUTUAL FUND OPERATION FLOW CHART.

Why Should You Invest in Mutual Funds?

WHY MUTUAL FUNDS?

FIG NO: 1.2

RELIANCE CAPITAL ASSETS HOLDING %

FIG NO: 1.3

OBJECTIVES OF RELIANCE MUTUAL FUND

Distribution channel strategy:

Online Market (Reliance mutual funds)

Asset Management: AUMs have more than doubled since FY07

TOP 5 AMC”S IN INDIA

Fig no: 1.5

Conflicting Returns on Capital

Fig No: 1.6

Types of Mutual Funds Schemes on the Basis of Structure

i) Open - Ended Schemes

ii) Close - Ended Schemes

iii) Interval Schemes

ii) Income or Dividend Schemes

iii) Balanced Schemes

Other Mutual Funds Schemes

Assets under Management - AUM'

BREAKING DOWN 'Assets under Management - AUM'

Why AUM Matters

How to Compare AUM

TITLE: GROWTH IN ASSETS UNDER MANAGEMENT

The conclusions are arrived at from the collected secondary data.

Data Collection Instrument: Questionnaire

DATA ANALYSIS AND INTERPRETATION

TABLE NO: 3.1

Scheme Name Crisil Category Latest 1 year

Reliance Focused Large Cap -

1) What is your age?

 The act or the result of interpreting: explanation

Ques1. What is your age?

what is your age

Ques.2 what is your Occupation?

Customer distribution based on occupation

Ques.3 how much is your monthly family income?

 31% of respondents have responded that their income between 20001-30000

Ques.4 Are you aware about Mutual Fund?

Awareness of mutual fund

Fig no: 3.5

6) Have you ever invest in mutual fund?

Have ever invest in mutual fund

(a) Savings (b) FD (c) Insurance (d) Mutual Fund

Investment Respondents percentage

Customer interest on investments

Fig. No. 3.6

Ques.9 what is your preference while investing?

Preference Respondents percentage