GAUHATI UNIVERSITY

A training report submitted in partial fulfillment of the requirement for the award of
the degree of the Masters of Business Administration (industry integrated), Gauhati
University on

PROJECT REPORT

ON

RELIANCE MUTUAL FUND

UNDER GUIDANCE OF : SUBMITTED BY :

VIKRAM ADITYA VAID MOHD TARIQ
 PREFACE

The successful completion of this project was a unique

experience for me because by visiting many place and
interacting various person, I achieved a better knowledge
about the corporate world. The experience which I gained by
doing this project was essential at this turning point of my
career this project is being submitted with content detailed
analysis of the research under taken by me.

The research provides an opportunity to the student to

devote his/her skills knowledge and competencies required
during the technical session.

The research is on the topic “Reliance mutual Fund”

2
 ACKNOWLEDGEMENT

“No man is indispensable but there are certain mortal

without whom the quality work suffers their guidance
becomes important in acquiring quality results”.

I am immense grateful to my subject teachers Mr. who

has given me this opportunity to prepare this project and
provided their invaluable guidance. I am also grateful to
my cluster head MR.GAURAV GUPTA who has provided
all the necessary information required to prepare this
report.

I am also grateful to my parents and friends who

inspired me to put my best efforts.

VIKRMADITYA VAID
PGDM 2nd Semester
CENTRE FOR MANAGEMENT DEVLOPMENT
MODINAGAR

3
 DECLARATION
I here by declare that this project report titled submitted
by me in partial fulfillment for the award of “POST
GRADUATION DIPLOMA IN MANAGEMENT” is a result of
the authentic work taken by me.
I have not submitted the same to any other university for
any other graduate or post graduate course whatsoever.

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 CONTENTS

1. INTRODUCTION 8
2. COMPANY PROFILE 15
3. COMPETITORS OF RELIANCE MONEY 37
4. NEED FOR THE STUDY 39
5. OBJECTIVES OF THE STUDY 42
6. RESEARCH METHDOLOGY 43
7. DATA ANALYSIS AND INTERPRETATION 45
8. OBSERVATION 51
9. FINDINGS AND SUGGESTION 52
10. CONCLUSION 54
11. LIMITATION 55
12. BIBLIOGRAPHY 56

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INTRODUCTION

6
 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.

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 HISTORY

 Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act
in 1963, and started its operations in 1964 with the issue of units under the scheme
US-641. In 1978 UTI was delinked from the RBI and Industrial Development
Bank of India (IDBI) took over the
Regulatory and administrative control in place of RBI.

 In the year 1987 Public Sector banks like State Bank of India, Punjab National
Bank, Indian Bank, Bank of India, and Bank of Baroda have set up mutual funds.

 Apart from these above mentioned banks Life Insurance Corporation [LIC] and
General Insurance Corporation [GIC] too have set up mutual fund. LIC established
its mutual fund in June 1989.while GIC had set up its mutual fund in December
1990.The mutual fund industry had assets under management of Rs. 47,004
crores.

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

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 Mutual Fund Regulations

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It
is registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000
crores of assets under management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered its
current phase of consolidation and growth. As at the end of September, 2004, there
were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

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 Types of Mutual Funds Scheme in India

Wide variety of Mutual Fund Schemes exists 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 Specific

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 ADVANTAGES OF MUTUAL FUNDS

There are numerous benefits of investing in mutual funds and

one of the key reasons for its phenomenal success in the
developed markets like US and UK is the range of benefits they
offer, which are unmatched by most other investment avenues.
Diversification
The nuclear weapon in your arsenal for your fight against
Risk. It simply means that you must spread your investment
across different securities (stocks, bonds, money market
instruments, real estate, fixed deposits etc.) and different sectors
(auto, textile, information technology etc.).
Tax Benefits
Any income distributed after March 31, 2002 will be subject to
tax in the assessment of all Unit holders. However, as a measure
of concession to Unit holders of open-ended equity-oriented
funds, income distributions for the year ending March 31, 2003,
will be taxed at a concessional rate of 10.5%.

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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.

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 Features related mutual funds

• Reliance was the first fund house to launch sector funds

with flexibility to invest in a range of 0% to 100% in
either equity or debt instruments.

• Mutual fund investments linked to an ATM/debit card

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

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

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

13
COMPANY PROFILE OF RELIANCE

14
 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.

15
The parent company also includes a development subsidiary in
commercial real estate. Reliance's international consulting group
contains several subsidiaries in energy, environment, and natural
resources consulting. A financial arm invests in other
businesses, primarily television stations.
Reliance Insurance started as the Fire
Association of Philadelphia in 1817, organized by 5 hose and 11
engine fire companies. It became the nation's first association of
volunteer fire departments.
Business got a boost as a result of the Great
Chicago Fire of 1871.The association soon developed a field of
agents to write policies across the country. For the first two
years, shareholders received dividends twice a year of $5 a
share, which increased gradually to $10 in 1876.
In 1972, the Reliance insurance group divided its pool so
that Reliance Insurance Company and its
Subsidiaries handled most standard lines, while United Pacific
Insurance Company handled the nonstandard and other
operations.

16
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.

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"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.

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 RELIANCE MUTUAL FUND

This group dominates this key area in the financial

sector. This mega business houses show that it has 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 Reliance Capital Asset Management Limited
RCAM), a subsidiary of
Reliance Capital Limited ,which holds 93.37% of the paid-up
capital of RCAM.
The company notched up a healthy growth
ofRs. 16,354 crore(US$ 4.09 billion)in assets under management
in February2008 and helped propel the total industry-wide AUM
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 new fund offers (NFOs) created this surge. In A
rankings, Reliance continues to be in the number one spot.

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 India's Best Offering: Reliance Mutual Fund
Investing has become global. Today, a lot of countries are
waking up to the reality that in order to gain financial growth,
they must encourage their citizens to not only save but also
invest. Mutual funds are fast becoming the mode of investment
in the world.
In India, a mutual fund company called the Reliance Mutual
Fund is making waves. Reliance is considered India's best when
it comes to mutual funds. Its investors number to 4.6 billion
people. Reliance Capital Asset Management Limited ranks in
the top 3 of India's banking companies and financial sector in
terms of net value.

The Anil Dhirubhai Ambani Group owns Reliance; they are the
fastest growing investment company in India so far. To meet the
erratic demand of the financial market, Reliance Mutual Fund
designed a distinct portfolio that is sure to please potential
investors. Reliance Capital Asset Management Limited manages
RMF.

Vision And Mission

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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.
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

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 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

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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.

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 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

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 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.

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• 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 Labor, State of Orissa.
• Hoshiarpur Manufacturing Division bagged the First Prize
in “Safety in Punjab”, organized by Punjab Safety Council.

26
• 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

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 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).

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• 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

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 and Hazira were honored with CII-National award for
Excellence in water management - 2007 as water
Efficient unit in “Within the fence” category.

Additionally, Hazira Manufacturing Division was

Honored 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

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 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

31
 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 Cycle hexane 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 fibers.
Hazira Manufacturing Division won the “Golden
Peacocks Innovation Award - 2007” for its Cycle
hexane Recovery Process.

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 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 Stock Challenger Award” conferred for the best IT
Head (managing the most IT enabled organization) of the
Year 2007.
• “Best IT Implementation Award”, by PC Quest for
Knowledge Management Systems portal (KMS).
• “CIO Excellence Award” for Chemical Industry
Information Technology Forum for exemplary Information
Technology implementation amongst global chemical
companies.
“CTO Forum Hall of Fame Award” for the best CIOs
in India for not only providing service to their

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 PRODUCT S : RELIANCE MONEY

The products on offer from Reliance Mutual Fund 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 Fund and Reliance Vision Fund as its flagship
schemes. Reliance Equity Opportunities Fund is a scheme which
operates in the multi-cap/multi-sector segment; Reliance Equity
Fund is a long-short fund, 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. Reliance Regular Savings
Fund is an asset-allocation fund with three options. Under the
debt and liquid categories, Reliance has liquid funds, liquid plus
funds, income funds, an NRI-dedicated debt fund, gilt funds,
fixed maturity plans and an interval fund. In the hybrid category,
Reliance Monthly income Plan is a popular option.

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Reliance understands that investments in mutual fund share a
function of knowledge dissemination and awareness of products
amongst potential investors. In building its own base of assets
under management it will necessarily have to carry the entire
mutual fund Industry.

Towards this end Reliance has launched a two-pronged

initiative. In the first pincer it has created formidable network of
26,000 distributors including some of the biggest names in the
banking sector. This who’s who of the financial industry
comprises such giants as Citibank, Standard Chartered,
HSBC,ICICI, AXIS, Bank of Baroda, Central Bank of India,
Allahabad Bank and fund houses such as JM, DSP Merrill
Lynch and Karvy in addition to a massive infrastructure of direct
financial investment officers. This prodigious effort is
supplemented by the brands’ captive network of 120 branch
offices
and 30 financial centers. In the second prong, Reliance has
created a series of information packed presentations which help
dispel misinformation Group. 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).

35
 Reliance’s mutual fund schemes are managed by Reliance
Capital Asset Management Limited (RCAM), a subsidiary of
Reliance Capital Limited, which holds 93.37% of the paid-up
capital of RCAM. The company notched up a healthy growth
ofRs. 16,354 crore (US$ 4.09billion)in assets under management
in February2008 and helped propel the total industry-wideAUM
to Rs. 565,459 crore(US$ 141.36 billion) (Source:
indiainvestments.com). A sharp rise infixed maturity plans
(FMPs) and collection of Rs. 7000 crore (US$ 1.75 billion)
through new fund offers (NFOs) created this surge. In rankings,
Reliance continues to be in the number 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 an
ATM/debit card are 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 asset base.

36
 Achievements

In two successive joint surveys by The Economic Times’ Brand

Equity and A Nielsen, Reliance was recognized as India’s Most
Trusted Mutual Fund. The company also walked 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 as ICRA Online and
the Most Improved Fund House 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 the Outlook Money-NDTV Profit Awards. In
addition, the company received the coveted CNBC Web18
Genius of the Web distinction for the Best Mutual Fund Website
in the country. RCAM was awarded the India Onshore Fund
House 2008 instituted by the Asian Investor magazine. The
company also won the India Equities award in the 5-
yearPerformance category.

37
 COMPARATIVE STUDY OF MUTUAL FUND

Major competitor 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 participant both with -National

Securities Depositories Limited (NSDL) and Central Depository
Services Limited (CDSL).

38
 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).

39
 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

40
ICICI Direct (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 IPO’s, Mutual Funds and
Bonds. Trading is available in BSE and NSE

ICICI Direct 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, IPO's, Bonds and stock trading.

Reliance Money

Tax Saving funds Reliance Money:

41
 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

42
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.

OBJECTIVE

To give a brief idea about the benefits available from

mutual Fund investment.

To give an idea of the types of schemes available.

43
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

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

44
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.

METHODS OF DATA COLLECTION

In this project work primary and secondary data sources of data

has been used.

45
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.

DATA ANALYSIS AND INTERPRETATION

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

Fund?

46
Company Name Percentages 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

47
ICICI 7

25

20

15

10

0
RELIANCE HDFC ICICI

INTERPRETATION:
44% respondent for Reliance, 32 %forHdfc, 14% for ICICI

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

Company Name Percentage of respondent

Reliance 20
HDFC 15
ICICI 15

48
 20

15

10

0
Reliance HDFC ICICI

INTERPRETATION:
40% respondent for Reliance, 30 %forHdfc, 30% for ICICI

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

product & services?
Company Name Percentage of respondent
Reliance 18
HDFC 16

49
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 offers you a good e-mail

facility?
Company Name Percentage of respondent
Reliance 22
HDFC 15
ICICI 13

50
 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%

51
 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.

52
  44% respondent for Reliance, 30%forHdfc, 26% for ICICI.

FINDINGS AND SUGGESTION

In Equity Schemes we have taken Reliance Vision 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 Debt scheme we have taken Reliance money Manager

Fund and Reliance Liquidity Fund .In it both schemes are
open ended but reliance money manager is more
beneficial for reliance mutual fund .

In sector specific scheme we have taken Reliance media

53
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.

SUGGESTION

• Reliance Money has 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.
• And the last thing company should reduce extra charges
which the e company is charging on their own products.

54
 CONCLUSION

Mutual Fund investment is better than other raising fund.

Reliance Mutual Fund has 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 cons are concluded by that Reliance Money is still

growing industry in India and is still exploring its potential and
prospects in here.

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

• The study is limited to the different schemes available

under the mutual funds selected.

• The study is limited to selected mutual fund schemes.

• The lack of information sources for the analysis part.

56
 • BIBLIOGRAPHY

Websites:
www.reliancemoney.com
www.hdfc.com
www.icicidirect.com

Reference books:

•FINANCIAL INSTITUTIONS AND MARKETS

L.M.BHOLE

• INVESTMENT MANAGEMENT
V.K.BHALLA

57
 • RESEARCH METHODOLOGY
KOTHARI

QUESTIONNAIRE

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

Fund?
• Reliance Money
• HDFC
• ICICI

Q.2 which banking mutual fund offers you good

Investment plan?
• Reliance Money
• HDFC
• ICICI

Q.3 which banking mutual fund offers a lot of tax

Saving?

58
 • Reliance Money
• HDFC
• ICICI

Q.4 which banking mutual fund offers you a large

Number of product & services?
• Reliance Money
• HDFC
• ICICI

Q.5 which banking mutual fund offers you a good e-mail

Facility?
• Reliance Money
• HDFC
• ICICI

59