A PROJECT REPORT ON THE TOPIC OF STUDY AND ANALYSIS OF VARIOUS

FINANCIAL PRODUCTS OF RELIANCE SUPPORTED WITH CONSUMER PERCEPTION

IN
RELIANCE MONEY,
Anil Dhirubhai Ambani Group

Submitted In Partial Fulfillment Of the Requirement of Post Graduate Diploma in Management

(2008 2010)
SUBMITTED BY ANUP KUMAR GUPTA PGDM IIIrd SEMESTER

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH 1

KONDHWA BUDRUK, PUNE

CERTIFICATE
This is to certify that Mr. Anup Kumar Gupta student of SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH, Pune has completed his field work report at RELIANCE MONEY on the topic of

STUDY AND ANALYSIS OF VARIOUS FINANCIAL PRODUCTS OF

RELIANCE SUPPORTED WITH CONSUMER PERCEPTION and has submitted the field work report in partial fulfillment of PGDM of the UNIVERSITY OF PUNE for the academic year 2008-2010 He has worked under our guidance and direction. The said report is based on bonafide information.

Prof. ViveK Swami Project guide

Prof. Sunil kumar Director

Date:Place:-

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND RESEARCH, KONDHWA (BK)

DECLARATION

I hereby declare that the project titled Study and Analysis of various financial products of Reliance supported with consumer perception is an original piece of research work carried out by me under the guidance and supervision of Prof. Vivek Swami. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of PGDM to Pune University.

Place: Date:

Signature: Anup Kumar Gupta

Certificate

Acknowledgement
I would like to take this opportunity to convey my heartfelt appreciation to them whose blessings and cooperation was important to bring this report in light. First, I want to pay my gratitude to the Almighty God for everything. This project has been a platform in my learning about the financial sector. I am deeply indebted to my institution SINHGAD INSTITUTE OF BUSINESS ADMNISTRATION AND RESEARCH PUNE to provide me an opportunity to undergo such a project, which gave me thorough insights and experience of the corporate culture that will always a milestone in the path of my successful career. I take immense pleasure in completing this project with RELIANCE MONEY LTD. I would like to thank RELIANCE MONEY LTD for giving me an opportunity of learning and contributing through this project. I also want to express my thankfulness to Mr. Gaurav Kumar (Cluster Head) and my internship supervisor/mentor Mr. Lakshmikant Dubey (Central Manager), for their direction, constant and spontaneous support, efficient supervision and constructive suggestions. Without their help this report would not have been a complete and comprehensive one. I would cordially thank all the staffs working in Reliance Money for their constant support throughout my Internship period. In this context as a student of SINHGAD INSTITUTE OF BUSINESS ADMNISTRATION AND RESEARCH I convey my earnest gratefulness to Prof. Vivek Swami for assigning me such a worthwhile topic Study and

Analysis of various financial products of Reliance supported with consumer perception and final. And also my thanks further extend to my
family, colleagues and friends who have assisted me directly or indirectly while preparing this report.

EXECUTIVE SUMMARY

The project work is pursued as a part of PGDM (Marketing) Curriculum at SINHGAD INSTITUTE OF BUSINESS ADMNISTRATION AND RESEARCH It is undertaken as a traineeship at Reliance Money Ltd. The project is done under expert supervision and guidance of Prof. Vivek Swami (Lecture in Marketing) and Mr. Lakshmikant Dubey (Center Manager, Reliance Money) The Project is about the study of marketing and sales of financial products and also the efforts done to make improvements in the customer acquisition process for better results. At RELIANCE MONEY, initially the trainees were imparted process and product knowledge. They were given sufficient time to know about the products and also about sales and distribution channel. They had to work with the sales representatives of the Distributor and think of ways of improving the sales and distribution channel and implementing them. The main aim was to increase sales and for this different ways were tried and implemented. They were provided with database and had to make cold calls from the data. Company activity was also one of the major sources for generating business. Initially they even accompanied sales representatives to the clients place. Main objective was to know the need of the customer and how to fulfill that in the best way. The project dealt with various fields like: 1. Trading and D-mat account 2. Life insurance 3. General insurance 4. Mutual funds

Thus it gave trainees the opportunity to learn about all the products and with the range of products Reliance money offered it made the task a bit easier as we could fulfill the need of the customer in a better way. Our task was divided in 4 phases: 1. Product knowledge: This included the theoretical knowledge about the field and products which needed to be marketed. 2. Pitching in retail sector: This included the implementation of the knowledge imparted to us and the test of our marketing skills. Initially we were accompanied by other sales executive so that we can learn how to deal with the customers and understand their need. This also enhanced our interpersonal skills and confidence level. 3. Implementation in retail sector and pitching in corporate: By the start of this phase we were confident enough about the pitching and fulfilling the needs of the customer in the retail sector. This also included of the ways we should pitch the corporate. 4. Implementation at corporate levels: This included the implementation of the all the knowledge and ways learnt for the pitching and extracting business out of the corporate. With the end of 8 weeks every phase was completed and it gave us the real experience of retail as well as corporate world.

TABLE OF CONTENTS
1. Introduction 2. Objectives 3. Methodology 4. Company Profile 5. Literature survey 6. Data presentation 6.1 Data collection 6.2 Data analysis 7. Conclusions 8. Limitations / future scope 9. Recommendations 10. Bibliography 11. Annexure

Introduction
The research provides an opportunity to a student to demonstrate application of his/her knowledge, skill and competencies required during the technical session. Research also helps the student to devote his/her skill to analyze the problem to suggest alternative solution, to evaluate them and to provide feasible recommendation on the provided data. The research is on the topic of Investors Perception towards Equity Market

and PMS of Reliance Money , although I have tried my level best to prepare this report. An error free reports every effort has been made to offer the most authenticated position with accuracy. Satisfaction is a function of perceived performance and expectations. If the performance matches the expectations, the customer is satisfied. Managing money has always been difficult task for man. Before 20-30 years ago people were not aware various investments options to make investment of their savings. They mainly invest their money in Gold, Silver, Real estate, etc. Though there are various traditional investment options available such as Fixed Deposits, Government securities, National Saving Certificate like IVP (Indira Vikas Patra) KVP (Kisan Vikas Patra) etc. people also make investment in various companies by purchasing of their shares. But due to globalization India, the Worlds largest democracy, is opening up to the global competition with the advent of liberalization. Todays economy is full of various investment avenues; there are various options available to a common investor irrespective of whether he being a retail or corporate. In near future a proper financial planning is required to invest money in all type of financial product because there is good potential in market to Invest. Investors generally have the tendency to diversify the risk and maximize the return so that maximum profit can be derived from any investment Market linked products are generally in a boom in this era, be it Mutual Funds, Securities, Commodities, Insurance, Equity etc. 10

The Indian mutual fund industry has witnessed significant growth in the past few years driven by several favorable economic and demographic factors such as rising income levels and the increasing reach of Asset Management Companies (AMCs) and distributors. However, after several years of relentless growth, the industry witnessed a fall of 8 percent in the assets under management in the financial year 2008-09 that has impacted revenues and profitability. Recent developments triggered by the global economic crisis have served to highlight the vulnerability of the Indian mutual fund industry to global economic turbulence and exposed our increased dependence on corporate customers and the retail distribution system. It is therefore an opportune time for the industry to dwell on the experiences and develop a roadmap through a collaborative effort across all stakeholders, to achieve sustained profitable growth and strengthen investor faith and confidence in the health of the industry. Industry scope The business of investment management has several facets, including the employment of professional fund managers, research (of individual assets and asset classes), dealing, settlement, marketing, internal auditing, and the preparation of reports for clients. The largest financial fund managers are firms that exhibit all the complexity their size demands. Apart from the people who bring in the money (marketers) and the people who direct investment (the fund managers), there are compliance staff (to ensure accord with legislative and regulatory constraints), internal auditors of various kinds (to examine internal systems and controls), financial controllers (to account for the institutions' own money and costs), computer experts, and "back office" employees (to track and record transactions and fund valuations for up to thousands of clients per institution).

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This report summarizes the study some of the Reliance various financial products and analysis of its historical performance it also throw light on the perception of the consumers towards investment in various financial products.

Objectives

Any job or the task, have the specific objectives i.e. what is need and what is the requirement of the particular work. In the same way my objective is also to learn something from the summer internship program. It means that the training program in any reputed company give the market knowledge of its subject matter of study. The right choice of the company in which a student has to do the training is also the part of the learning and what he/she wants to learn in the summer training.

Primary Objective:
Study of Various financial product of Reliance and analyze the past performance of some Mutual fund Supported with consumer perception about financial product. To find out consumers criterions for selection of Mutual Funds.

Secondary Objective:
To understand Investment and Mutual Fund Industry. To study benefits in investment in Mutual Funds. To find out which types of investment is best stock or mutual funds.

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Research Methodology
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. The advance learners dictionary of current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Marketing Research: Before defining Marketing Research let us determine Market Research. Various authors have defined it in different ways. Its purpose is to find answer to the question through the application of scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Marketing research is a scientific and objective study of problem pertaining of the marketing of goods and services Marketing research is the collection and interpretation of facts that help marketing management to set products more efficiently in the hands of the consumer. Market research encompasses all information pertinent to this all the appropriate techniques. American Marketing Association (AMA) has defined Marketing Research as:The systematic gathering, recording and analysis of data about problem relation to the marketing of Goods & Services. Any marketing research project can be formulated by following steps:
Defining the problem and research objectives

Developing research plan

Collecting the information

Analysis of information

Presentation of information

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Research Design: Research design is needed because it facilitates the smooth sailing of the various research operations there by making research as efficient as possible and yielding maximum information with minimum expenditure of efforts, time and money. Research design is generally classified as:1. Descriptive Research 2. Exploratory Research 3. Causal Research 4. Analytical Research 5. Applied Research 6. Fundamental Research 7. Quantitative Research 8. Qualitative Research 9. Conceptual Research 10. Empirical Research In case of this project the main aim was to find out the various financial products and understand mutual fund. And find scope to increase business. In order to facilitate this, I have selected Descriptive Research. The instrument used for research purpose is questionnaire method.

1.1 RESEARCH APPROACH

Qualitative as well as Quantitative approach has been used for this research. But the stress was basically on the quantitative approach.

1.1.1 Quantitative approach

Quantitative data involves the generation of data in a quantitative form which can be subjected to analysis in a formal and rigid fashion.

Qualitative approach
It is concerned with subjective assessment of opinions and behavior.

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Research Design
This calls for developing the most efficient plan for gathering the necessary information, design a research plan, decision on the data sources, research approaches, research instruments, sampling plan and contact methods. A research design is the specification of the method and procedure for acquiring the information needed. According to my research design I have performed the

following Steps in the project.

Deciding objective and sub-objective of the research. To determine the most suitable method of research.

Research designs are of following types: 1. DESCRIPTIVE 3. CAUSAL 5. EXPLORATORY In this project, descriptive type of research design has been used. 2. DIAGNOSTIC 4. EXPERIMENTAL

SAMPLING
SAMPLING METHOD & TECHNIQUE There are two types of sampling methods 1. PROBABILITY METHOD. 2. NON PROBABILITY METHOD. In this research the non-probability sampling technique is used and in nonprobability Method, random sampling is used.

RESEARCH TOOL
A structured questionnaire was used as an instrument in gathering the required information from the Regular customer. It is a systematic compilation of questions. The questions were well defined and mostly were closed ended question because of which respondent dont have to stress their mind.

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RESEARCH TYPE
DESCRIPTIVE RESEARCH This method was undertaken to know about characteristics of every group. In this project the objective was to gather information about financial product and mutual fund and problem faced by it.

RESEARCH DURATION
The research duration was of two month from 1th of June to 31th of July 2009

SAMPLING
Sampling is one of the most fundamental concepts underlying any research work. Most research studies attempt to make generalization or draw inference regarding the population. Based on their study of a part of the population that is the sample. The sample data enables the researchers to correctly estimate the population parameters. While doing sampling I considered Pune region area and then have taken help of convenience sampling.

SAMPLING UNIT
My sample units were Investor and non investor who are taking mutual funds D-met and financial product. So it is clear that the sample units are nothing but the variables to be studied.

SAMPLE FRAME
The entire list that contains the sample unit is known as sample frame: in this case my sample frame was Pune region.

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SAMPLE SIZE
In this research I have taken the total sample size of 120. In which I considered who invest money and those who not invest money. We found some customers who are interested to invest money but not being able to invest due to their personnel reason.

Sampling Design: Population In statistical usages, term population is applied to any finite or infinite collection of individuals. For this project the samples taken included respondents who were existing Reliance Subscribers, subscribers of other service providers and few respondents were such that they did not use any service providers.

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Sample Selection: Sample selection is mainly divided under two types:1. Probabilistic 2. Non Probabilistic For research purpose, the sampling technique selected is Probabilistic Sampling. The population for the project was large; it was not possible to meet every one so researcher select convenience sampling method from probabilistic sampling method. During the two months of research, the area covered is from all parts of Pune city. Sample Size: Considering the coverage of research, the sample size taken was of 120 and was bifurcated into various parts: business organizations and individual respondents. After research problem in marketing has been identified, the next step is to gather the requisite data. These data are of two types 1. PRIMARY DATA 2. SECONDARY DATA 1. PRIMARY DATA Those data which are collected at first hand either by the researcher or by someone else especially for the propose of study are shown as The Primary data can be collected mainly in three ways: i. ii. iii. Observation Methods Questionnaire Method Interview Method

In this research mainly two ways of data collection for the primary data are being used. Those are questionnaire method and interview method. 2. SECONDARY DATA Any Data which has been gathered earlier some other purpose are secondary data in the hands of marketing researcher. In this research some secondary data is also being used

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Research Methodology adopted for the Project The research conducted was the primary Research where in a survey has been conducted with readers And Advertisers. The interview will be personal interview and questionnaires will be used to collect relevant data.
Research Design Sampling Technique Sources of Data Sample Size Area of Research Descriptive Research Probability Sampling: sampling) Primary + Secondary 120 (questionnaire) PUNE (Stratified

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LITERATURE SURVEY
According to the Websters dictionary, literature is the writings that pertain to a particular branch of learning, and printed matter. And review means to examine again, to study carefully. Therefore literature review is the printed matter which we study very carefully during our work. This project is also a collection of insight into the different printed material. As this project is specifically related to sales of financial products hence books on investments is one of the study materials. The insurance institute of India has published books which give an insight into the life insurance products and general insurance products. The main source of data through which this project has taken its shape is the circulars of SEBI and IRDA. These circulars give description of existing market. The knowledge about the marketing principles is gained from the book principles of marketing written by Philip Kotler. Chapter positioning and marketing of services of the service management and operations published by prentice hall international editions gives us the outline of marketing of services. Chapter Building Customer Satisfaction, Value and Retention of Marketing Management written by Philip Kotler. Purpose of this book is to provide background needed to understand the basics of forming strong customer bonds and customer relationship management. Chapter on distribution channels in the book marketing channels written by Louis W.stern & add I.E.I Ansary. Purpose of this book is to provide the detailed knowledge about what is distribution channel, its importance & role in marketing. Chapter The concept and role of mutual funds of the AMFI mutual fund testing programmers by association of mutual funds in India. This book provide concept of mutual funds. The article managing your D-mat account published in the MINT dated June 18, 2007 page 12 give knowledge about D-mat account. 20

Last but not the least, the practical experiences of reliance money has given the best ever exposure on the actually market works in financial products and services.

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Company Profile

Content Online Business

Video Rental

Mobile Games

Broad casting

Theme Entertainment

Core Business

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Reliance Capital

Reliance Mutual fund Reliance Mutual Fund General Insurance

Reliance Reliance Life Insurance Money

Reliance Consumer Finance

Reliance money is a part of the reliance Anil Dhirubai Ambani Group

and is promoted by Reliance capital, the fastest growing private sector financial services company in India, ranked amongst the top 3 private sector financial companies in terms of net worth. Reliance money is a comprehensive financial solution provider that enables you to carry out trading and investment activities in a secure, cost-effective and convenient manner. Through reliance money, you can invest in a wide range of asset classes from Equity, Equity and commodity Derivatives, Mutual Funds, insurance products, IPOs to availing services of Money Transfer & Money changing. Reliance Money offers the convenience of on-line and offline transactions through a variety of means, including its Portal, Call & Transact, Transaction Kiosks and at its network of affiliates. Some key steps of the company that are as. Success sutras of Reliance Money:

The success story of the company is driven by 8 success sutras adopted by it namely trust, integrity, dedication, commitment, enterprise, hard work and team play, learning and innovation, empathy and humility. These are the values that bind success with Reliance Money.

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Vision of Reliance Money:

To achieve & sustain market leadership, Reliance Money shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality services. In the process Reliance Money shall strive to meet and exceed customer's satisfaction and set industry standards. Mission statement:

Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics.

Business Overview
Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, consumer finance and other activities in financial services. Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance is India's fastest growing life insurance company and among the top 4 private sector insurers. Reliance General Insurance is India's fastest growing general insurance company and the top 3 private sector insurers. Reliance Money is the largest brokerage and distributor of financial products in India with more than 2.5 million customers and the largest distribution network. Reliance Consumer finance has a loan book of over Rs. 8,000 crores at the end of June 2008 Reliance Capital has a net worth of Rs.6, 862 crores (US$ 1.6 billion) and total assets of Rs. 19,940 crores (US$ 4.6 billion) as of June 30, 2008 and over 26,000 employees.

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Reliance Money has increased its market share among private financial companies to nearly Convenient & effective Anytime & anywhere financial transaction capability. Launched in April 2007. It provides the Flat fees system. It has 2.2 million customers in 1 year of official launch. It has over 5,000 outlets across 700 towns/cities. Average daily turnover in excess of Rs 2,000 crores. Considering the entire life market, including the Rs. 12,890 crores booked by life insurance Corporation, Reliance life insurance market share works out to around 6.25% The life insurance market continuous to be dominated by LIC which has about 67% share this only a marginal dip from its 73% share in end-July these comparisons are only for first year or new business premium. The gap between Reliance life insurance and the second-in-line private insurer is vast. In fact, this scenario has led some analysts to wonder if the company is not a trifle too aggressive. But others say this has more to do with the companies customer-centric focus, its pan-India presence and superior risk management and investment strategies. Reliance Money is not, however, resting on its laurels. Companys customer centric approach will be studied during the training period and the finding of the research work will definitely focus on the present condition & future requirement (if any) relating to products of company.

Board of Directors
Anil Dhirubhai Ambani - Chairman Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 50, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural Resources and Reliance Power. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and 25

Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company's management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country's first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997. Amitabh Jhunjhunwala - Vice-Chairman Rajendra Chitale - Independent Director Sudip bandhopahy - MD Reliance Money Kapil wali CEO Ansual Hazara - National Head Pankaj Sharma - Regional Head Gaurav Kumar - Cluster Head Lakshmikant Dubey - Central Manager

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Products of Company D-mat Account Services

There are many broking houses doing business in India and they charge a brokerage on every transaction made online or offline. (Buying and Selling are treated as separate transaction). Reliance Moneys advantage over others is that its charging the lowest brokerage in the market which is just 1 paisa on every executive trade irrespective of the volume traded. Reliance Money, the brokerage and distribution arm of Reliance ADA Group, aims to tap investors in the smaller towns and cities through a flat fee structure. The current leaders in the retail broking segment like ICICI Direct, India Infoline and Indiabulls offer a pay per use model where the customer pays a percentage of the amount transacted by him. Reliance Moneys brokerage rates are quite competitive. The new wonder is Reliance Money's pre-paid card for stock market brokerage. Reliance Money, the financial services division of Anil Dhirubhai Ambani Group-promoted Reliance Capital, is bringing to the market pre-paid cards in denominations of Rs500, Rs1000, Rs2500, Rs5000 and Rs 10000 with validity period of two months, six months and twelve months respectively. Fee Structure and validity limits (+ Rs. 750/- as registration)
Access (Rs.) Fee Validity earlier) Time Validity 1 Year 2 months 6months 1 year (whichever is Turnover Limit Turnover Validity Rs. 2 lac Rs. 1 cr. Rs. 3 cr. Rs. 7 cr. Intraday Turnover Rs. 1.8 k Rs. 90 lac Rs. 2.7 cr. Rs. 6.3 cr. Delivery Turnover Rs. 0.2 k Rs. 10 lac Rs. 30 lac Rs. 70 lac

500 1000 2500 5000

Unutilized Delivery limit may be added to intraday limit

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Converted to percentage terms competitive brokerage rates trades up to Rs10 lacs

- Reliance Money offers most 0.05% for delivery trades and

0.005% for non-delivery trades (fixed fee of Rs500/- for delivery and/or non-delivery trades up to Rs1 crore). Industry rates vary between 0.4% to 0.85% for delivery trades and between 0.05% and 0.10% for non delivery trades.

How reliance money scored over others? Two way authentication : Reliance offers its customers with a token (an electronic gadget) that generates a password, which are a third level of security in addition to the customer log in and a password provided. The password generated by the token is valid only for a period of 20 seconds. If the web page expires, for the fresh login, a new password generated by the token has to be keyed in by the customer. Lowest brokerage: Reliance offers the lowest brokerage of 1 paisa which is very less with respect to the other DPs in the market. User friendly software: The portal offered is very easy to understand and use. Forex and offshore investment: Reliance provides the offshore facility which no other AMC is providing in the market. Better research and news: Reliance offers news from the DOW JONES and REUTERS. Seeking to bring share trading closer to consumers just like ATMs, Reliance Capital's stock brokerage arm Reliance Money launched Internet trading services through web-enabled retail kiosks. Now reliance money introduces % brokerage which computed other competitor in the market as well as Super Trade. % brokerage is different form top up which is available in reliance money. 28

Turnover slabs >2.5 Crores 50 Lakes to 2.5 Crores 25 Lakes to 50 Lakes 10 lakes to 25 Lakes 5 lakes to 10 lakes < 5 lakes

Brokerage (Delivery) 0.15% 0.20% 0.30% 0.40% 0.45% 0.50%

Turnover slabs 50 Cr. Or More 25 Cr. To 50 Cr. 10 Cr. To 25 Cr. 5 Cr. To 10 Cr. 2 Cr. To 5 Cr. Less than 2 Cr.

Brokerage (Intraday) 0.02% 0.02% 0.03% 0.03% 0.04% 0.05%

Charges of Super Trade For Limit Card Clients: Rs.500 + service tax per quarter (Fees are nonrefundable) For % Brokerage Clients: Rs.500 + service tax per quarter (Fees excluding Service tax are refundable)

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"Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event." Reliance Life Insurance is an associate company of Reliance Capital Ltd., which along with its associates has acquired 100% shares in AMP Sanmar Life Insurance Co Ltd. Reliance Life Insurance, has a pan presence and a range of products catering to individual as well as corporate needs. Various products to cover customers need and benefits. Guiding Principles Customer Care and Satisfaction Corporate Governance Creativity and Innovation Competitiveness

NEED FOR LIFE INSURANCE Protection of the interest of the faculty of the loss of income due to death of the breadwinner. Provision for the education & marriage of children. Post retirement income for self & dependents. Special needs like loss of income due to disabilities, accidents, treatment of diseases, sickness etc. To protect against inflation. Types of Insurance Insurance for woman Medical and Non-Medical Schemes With Profit and Without Profit Plans Tax Benefit Insurance 30

 Unit Linked Insurance Plan

Fundamentals of General Insurance companies are business houses. The product they sell is financial protection. To succeed and survive, they must cover their costs, which include payments to cover the losses of policyholders, as well as sales and administrative expenses, taxes and dividends. Insurance companies have two sources of income for covering these costs: premium and investment income. The premium are collected on a regular basis and invested in Government Bonds, Gift stocks, mutual funds, real estates and other conservative avenues. However, investment income depends on market conditions, interest rates, economy etc and varies from year to year. Because of the uncertainty associated with the investment income, insurance companies must generate enough income from premium to cover the bulk of their expenses. The primary function of insurance is to provide protection against financial losses caused by unforeseen events. This protection is available to individuals, businessmen and large companies alike. Types of General Insurance Health Personal Accident Fire

Engineering

Marine Motor Liability Miscellaneous 31

Travel

BASIC FEATURES Hospitalization Expenses Daycare Treatment Domiciliary Hospitalization Pre and Post Hospitalization Coverage of Pre-Existing Diseases Critical Illness Cover Donor Expenses

VALUE ADDED FEATURES Expenses of accompanying person at the Hospital Local Road Ambulance Services Recovery Benefit Cost of Health Check up Nursing Allowance Hospital Daily Allowance

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THEORITICAL BACKGROUND The Concept of Mutual Fund A mutual fund is a common pool of money into which investors place their contributions that are to be invested in accordance with a stated objective. The ownership of the fund is thus joint and mutual; the fund belongs to all investors

Mutual Funds are essentially investment vehicles where people with similar investment objective come together to pool their money and then invest accordingly. Each unit of any scheme represents the proportion of pool owned by the unit holder (investor). Appreciation or reduction in value of investments is reflected in net asset value (NAV) of the concerned scheme, which is declared by the fund from time to time. Mutual fund schemes are managed by respective Asset Management Companies (AMC). Different business groups/ financial institutions/ banks have sponsored these AMCs, either alone or in collaboration with reputed international firms. Several international funds like Alliance and Templeton are also operating independently in India. Many more international Mutual Fund giants are expected to come into Indian markets in the near future.

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Working of a Mutual Fund

Types of Mutual Funds on the Basis of Risk Vs Returns

Sector Funds Diversified Equity Funds

R e t u r n s

Balanced Funds MIPs Gilt Funds Income Funds Floaters Money Market Funds

Risk The key term in mutual funds Dividend Policy:

Dividend will be distributed from the available distributable surplus after the deduction of the divided distribution surplus after the deduction of the dividend distribution tax and the applicable surcharge, if any. The mutual fund is not guaranteeing or assuring any dividend. Pease read the offer document for details. Further payment of all the dividends shall be in compliance with SEBI circular No. SEBI/IMD/CIR No. 1/64057/06 dated 4/4/06. 34

Net Asset Value (NAV):

Net Asset Value is the market value of the assets of the scheme minus its liabilities. Per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date. Applicable NAV: Sale of units by reliance mutual fund: in respect of valid applications received up to 3 p.m. by the mutual fund along with a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable. Repurchase including Switch-out: in respect of valid applications received up to 3 pm by the mutual fund, same days closing NAV shall be applicable. In respect of valid applications received after 3 p.m. by the mutual fund, the closing NAV of the next business day shall be applicable. Daily net Asset Value (NAV) publication: the NAV is declared on all

working days and is published in 2 newspapers. NAV can also be viewed on www.reliancemutualfund.com and www.amfiindia.com . Tax Benefits to the mutual fund: Reliance Mutual Fund is a Mutual fund registered with the securities & exchange board of India and hence the entire income of the mutual fund will be exempt from income tax in accordance with the provisions of section 10(23D) of the income tax act, 1961. The mutual fund will receive all income without any deduction of tax at source under the provisions of section 196(iv) of the act. An exemption has been granted under the finance (No.2) act, 2004 to open ended equity oriented mutual funds from paying distribution tax on income distributed without any time limit, effective from 1 April 2004. Securities transaction Tax:

Name of Transaction Payable by Rate of Tax Purchase and sale of equity Both purchaser as well as 0.125% shares or units of equity seller oriented mutual funds on a recognised stock exchange

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on delivery basis Sale on stock exchange of Seller equity shares or units of equity basis Sale oriented mutual funds on non- delivery of derivatives Seller stock

0.025%

0.017%

reorganized

exchange Sale of units of equity Seller oriented mutual funds to the mutual fund

0.25%

Sale Price

Is the price you pay when you invest in a scheme? Also called Offer Price. It may include a sales load. Repurchase Price

Is the price at which a close-ended scheme repurchases its units and it may include a back-end load? This is also called Bid Price Redemption Price

Is the price at which open-ended schemes repurchase their units and closeended schemes redeem their units on maturity? Such prices are NAV related. Sales Load

Is a charge collected by a scheme when it sells the units? Also called, Frontend load. Schemes that do not charge a load are called No Load schemes Repurchase or Back-end Load

Is a charge collected by a scheme when it buys back the units from the unit holders?

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 TYPES OF INVESTMENT: Lump Sum Systematic Investment Plan(SIP) Lump sum: In Lump sum the investment is only one times that is of Rs. 5,000 and if the investment is monthly then the investment will be 6,000/Systematic Investment Plan (SIP): We have already mentioned about SIPs in brief in the previous pages but now going into details, we will see how the power of compounding could benefit us. In such case, every small amounts invested regularly can grow substantially. SIP gives a clear picture of how an early and regular investment can help the investor in wealth creation. Due to its unlimited advantages SIP could be redefined as a methodology of fund investing regularly to benefit regularly from the stock market volatility. In the later sections we will see how returns generated from some of the SIPs have outperformed their benchmark. But before moving on to that lets have a look at some of the top performing SIPs and their return for 1 year: Exposure of Mutual Funds Companies in India The concept of mutual funds in India dates back to the year 1963. The era between 1963 and 1987 marked the existence of only one mutual fund company in India with Rs. 67bn assets under management (AUM), by the end of its monopoly era, the Unit Trust of India (UTI). By the end of the 80s decade, few other mutual fund companies in India took their position in mutual fund market. The new entries of mutual fund companies in India were SBI Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund. The succeeding decade showed a new horizon in Indian mutual fund industry. By the end of 1993, the total AUM of the industry was Rs. 470.04 bn. The private sector funds started penetrating the fund families. In the same year the first Mutual Fund Regulations came into existence with re-registering all

37

mutual funds except UTI. The regulations were further given a revised shape in1996. Kothari Pioneer was the first private sector mutual fund company in India which has now merged with Franklin Templeton. Just after ten years with private sector players penetration, the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund companies in India in which some are as below. ABN AMRO Mutual Funds Birla Sun life mutual Funds Bank of Baroda Mutual Fund HDFC Mutual Fund HSBC Mutual Fund ING Vysya Mutual Fund Prudential ICICI Mutual Fund Sahara Mutual Fund State Bank of India Mutual Fund Tata Mutual Fund (TMF) Kotak Mahindra Asset Management Company (KMAMC) UTI Asset Management Company Private Limited Reliance Mutual Fund (RMF) Standard Chartered Mutual Fund Escorts Mutual Fund Alliance Capital Mutual Fund Benchmark Mutual Fund Canbank Mutual Fund Chola Mutual Fund LIC Mutual Fund GIC Mutual Fund

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Terms and conditions This facility offered only to the investors having bank accounts in selected cities which are specific in the form of the SIP. Submit the following document at least 21 working days before the first SIP date for ECS (Electronic clearing Service). The first SIP cheque should be issued from the same bank account which is to be debited under ECS for subsequent installments. The bank account provided for ECS (Debit) should participate in local MICR clearing. SIP auto debit facility is available only on specific dates of the month i.e. 2 nd or 10th or 18th or 28th. The investor agrees to abide by the terms and conditions of ECS facility of Reserve bank of India. An investor can opt for monthly or quarterly frequency. Only one SIP per month or per quarter is permitted per folio/account. Minimum investment amount monthly SIP option 60 installments of Rs. 100/- each or 12 installment or Rs. 500/- each or 6 installments of Rs. 1000/each and in multiples of Re.1/- thereafter. The gap between the 1st cheque/ installment & the 2nd cheque / installment should be at least 21working days. However subsequent cheques should have a gap of at least a month or a quarter depending upon the frequency chosen. Performance Measures of Mutual Funds Mutual Fund industry today, with about 34 players and more than five hundred schemes, is one of the most preferred investment avenues in India. However, with a plethora of schemes to choose from, the retail investor faces problems in selecting funds. Factors such as investment strategy and management style are qualitative, but the funds record is an important indicator too. Though past performance alone can not be indicative of future performance, it is, frankly, the only quantitative way to judge how good a fund is at present. Therefore, there is a need to correctly assess the past performance of different mutual funds. 39

Worldwide, good mutual fund companies over are known by their AMCs and this fame is directly linked to their superior stock selection skills. For mutual funds to grow, AMCs must be held accountable for their selection of stocks. In other words, there must be some performance indicator that will reveal the quality of stock selection of various AMCs. Return alone should not be considered as the basis of measurement of the performance of a mutual fund scheme, it should also include the risk taken by the fund manager because different funds will have different levels of risk attached to them. Risk associated with a fund, in a general, can be defined as variability or fluctuations in the returns generated by it. The higher the fluctuations in the returns of a fund during a given period, higher will be the risk associated with it. These fluctuations in the returns generated by a fund are resultant of two guiding forces. First, general market fluctuations, which affect all the securities, present in the market, called market risk or systematic risk and second, fluctuations due to specific securities present in the portfolio of the fund, called unsystematic risk. The Total Risk of a given fund is sum of these two and is measured in terms of standard deviation of returns of the fund. Systematic risk, on the other hand, is measured in terms of Beta, which represents fluctuations in the NAV of the fund vis--vis market. The more responsive the NAV of a mutual fund is to the changes in the market; higher will be its beta. Beta is calculated by relating the returns on a mutual fund with the returns in the market. While unsystematic risk can be diversified through investments in a number of instruments, systematic risk cannot. By using the risk return relationship, we try to assess the competitive strength of the mutual funds vis--vis one another in a better way. In order to determine the risk-adjusted returns of investment portfolios, several eminent authors have worked since 1960s to develop composite performance indices to evaluate a portfolio by comparing alternative portfolios within a particular risk class. The most important and widely used measures of performance are: The Treynor Measure The Sharpe Measure Jenson Model 40

Advantages of Mutual Funds The benefits on offer are many with good post-tax returns and reasonable safety being the hallmark that we normally associate with them. Some of the other major benefits of investing in them are: Number of available options Mutual funds invest according to the underlying investment objective as specified at the time of launching a scheme. So, we have equity funds, debt funds, gilt funds and many others that cater to the different needs of the investor. The availability of these options makes them a good option. While equity funds can be as risky as the stock markets themselves, debt funds offer the kind of security that is aimed for at the time of making investments. Money market funds offer the liquidity that is desired by big investors who wish to park surplus funds for very short-term periods. The only pertinent factor here is that the fund has to be selected keeping the risk profile of the investor in mind because the products listed above have different risks associated with them. So, while equity funds are a good but for a long term, they may not find favor with corporate or High Net worth Individuals (HNIs) who have short-term needs. Diversification

Investments are spread across a wide cross-section of industries and sectors and so the risk is reduced. Diversification reduces the risk because all stocks don t move in the same direction at the same time. One can achieve this diversify through a Mutual Fund with far less money than one can on his own. Professional Management

Mutual Funds employ the services of skilled professionals who have years of experience to back them up. They use intensive research techniques to analyze each investment option for the potential of returns along with their risk levels to come up with the figures for performance that determine the suitability of any potential investment. 41

Potential of Returns

Returns in the mutual funds are generally better than any other option in any other avenue over a reasonable period of time. People can pick their investment horizon and stay put in the chosen fund for the duration. Equity funds can outperform most other investments over long periods by placing long-term calls on fundamentally good stocks. The debt funds too will outperform other options such as banks. Though they are affected by the interest rate risk in general, the returns generated are more as they pick securities with different duration that have different yields and so are able to increase the overall returns from the portfolio. Liquidity

Fixed deposits with companies or in banks are usually not withdrawn premature because there is a penal clause attached to it. The investors can withdraw or redeem money at the Net Asset Value related prices in the openend schemes. In closed-end schemes, the units can be transacted at the prevailing market price on a stock exchange. Mutual funds also provide the facility of direct repurchase at NAV related prices. The market prices of these schemes are dependent on the NAVs of funds and may trade at more than NAV (known as Premium) or less than NAV (known as Discount) depending on the expected future trend of NAV which in turn is linked to general market conditions. Bullish market may result in schemes trading at Premium while in bearish markets the funds usually trade at Discount. This means that the money can be withdrawn anytime, without much reduction in yield. Some mutual funds however, charge exit loads for withdrawal within a period. Besides these important features, mutual funds also offer several other key traits. Important among them are: Well Regulated

Unlike the company fixed deposits, where there is little control with the investment being considered as unsecured debt from the legal point of view, 42

the Mutual Fund industry is very well regulated. All investments have to be accounted for, decisions judiciously taken. SEBI acts as a true watchdog in this case and can impose penalties on the AMCs at fault. The regulations, designed to protect the investors interests are also implemented effectively. Transparency

Being under a regulatory framework, mutual funds have to disclose their holdings, investment pattern and all the information that can be considered as material, before all investors. This means that the investment strategy, outlooks of the market and scheme related details are disclosed with reasonable frequency to ensure that transparency exists in the system. This is unlike any other investment option in India where the investor knows nothing as nothing is disclosed. Tax Benefits

Tax saver schemes facilitate investors to enjoy Tax rebate. Flexible, Affordable and a Low Cost affair Mutual Funds offer a relatively less expensive way to invest when compared to other avenues such as capital market operations. The fee in terms of brokerages, custodial fees and other management fees are substantially lower than other options and are directly linked to the performance of the scheme. Investment in mutual funds also offers a lot of flexibility with features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans enabling systematic investment or withdrawal of funds. Even the investors, who could otherwise not enter stock markets with low investible funds, can benefit from a portfolio comprising of high-priced stocks because they are purchased from pooled funds. As has been discussed, mutual funds offer several benefits that are unmatched by other investment options. Post liberalization, the industry has been growing at a rapid pace and has crossed Rs. 100000 crore sizes in terms of its assets under management. However, due to the low key investor awareness, the inflow under the industry is yet to overtake the inflows in banks. Rising 43

inflation, falling interest rates and a volatile equity market make a deadly cocktail for the investor for whom mutual funds offer a route out of the impasse. The investments in mutual funds are not without risks because the same forces such as regulatory frameworks, government policies, interest rate structures, performance of companies etc. that rattle the equity and debt markets, act on mutual funds too. But it is the skill of the managing risks that investment managers seek to implement in order to strive and generate superior returns than otherwise possible that makes them a better option than many others. You can usually buy mutual fund shares by mail, phone, or over the Internet. Drawbacks of Mutual Funds

Mutual funds have their drawbacks and may not be for everyone: No Guarantees: No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money. Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge sales commissions or "loads" to compensate brokers, financial consultants, or financial planners. Even if you don't use a broker or other financial adviser, you will pay a sales commission if you buy shares in a Load Fund. Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the income you receive, even if you reinvest the money you made. Management risk: When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected. Of course, if you invest in Index Funds, you forego management risk, because these funds do not employ managers.

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Reliance Mutual Fund Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai Ambani Group, is India's leading Mutual Fund, with average Assets under Management of Rs. 90,813 crores for the month of June 2008, and an investor base of over 6.7 million. Reliance Mutual Fund offers investors a well rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a presence in 300 cities across the country and constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd. Some of the Reliance Mutual Fund can be enlisted as below: Reliance Growth Fund Reliance Vision Fund Reliance Banking Fund Reliance Diversified Power Sector Fund Reliance Pharma Fund Reliance Media & Entertainment Fund Reliance NRI Equity Fund Reliance Equity opportunities Fund Reliance Index Fund Reliance Tax Saver (ELSS) Fund Reliance Equity Fund Reliance Long Term Equity Fund Reliance Regular Saving Fund 45

DATA ANALYSIS
RELIANCE EQUITY FUND: On the basis of features:
Fund Feature Type of scheme Nature Option Inception Date Face value (Rs/Unit) Fund Size in Cr (as on July 31, 2009) NAV calculation Minimum Investment Entry load Exit load Expense Ratio Portfolio turnover ratio (%) Increase/ Decrease in fund Size (as on 30, Jun 2009) RELIANCE EQUITY FUND Open Ended Equity Growth Mar 28,2006 10 2345.23 Daily 380053 0% 1 % (0-3 year) for (0- 4.9 Cr) 1 % (0-10 days) for (> 5Cr) 1.87 114 113.21

As per the historical NAV value:

Value NAV as on 14 Aug 2009 52- Week high 52- Week low RELIANCE EQUITY FUND 13.79 14.16 as on Aug 3, 2009 8.21 as on Mar 9, 2009

NAV Graph:

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Interpretation: Above graph represents the RELIANCE EQUITY FUND (Growth) performance from 15-july-09 to 14-Aug-09. It has start at 12.69 and last was at 13.79. This shows the 10% growth. It also shows the up and down in funds growth due to up and down of share market. During this period but it has never gown in loss. So it is a good investment option. As per Risk and Return: Historical Return %age:

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RISK:
Ratios Sharpe Beta Treynor Sortino Fama -0.12 0.73 -0.69 -0.21 0.05 Value

As per Portfolio:
Portfolio attributes P/E P/B Dividend Yield Market Capital (Cr) Large Mid Small Top five holding (%) No. of stocks RELIANCE EQUITY FUND 24.02 as on Jul-2009 4.08 as on Jul-2009 0.94 as on Jul-2009 73,951.29 as on Jul-2009 58.56 as on Jul-2009 16.85 as on Jul-2009 NA 27.60 as on May-2009 21

Asset allocation:
Sector Equity Debt Cash & equivalent RELIANCE EQUITY FUND 79.54 0.00 20.46

RELIANCE TAX SAVER FUND: On the basis of features: 48

Fund Feature Type of scheme Nature Option Inception Date Face value (Rs/Unit) Fund Size in Cr (as on July 31, 2009) NAV calculation Minimum Investment Entry load Exit load Expense Ratio Portfolio turnover ratio (%) Increase/ Decrease in fund Size (as on Jun 30, 2009)

RELIANCE TAX SAVER FUND Open Ended Equity Growth Sept 22, 2005 10 2006.63 Daily 38053 0% 0% 1.92 119 126.82

As per the historical NAV value:

Value NAV as on 14 Aug, 2009 RELIANCE TAX SAVER FUND 15.31

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52- Week high 52- Week low

15.61 as on Aug 3, 2009 8.53 as on Mar 9, 2009

NAV Graph:

Interpretation: Above graph represents the RELIANCE TAX SAVER FUND (Growth) performance from 15-july-09 to 14-Aug-09. It has start at Rs.14.01 and last was at Rs. 15.31. This shows the 9.9% growth. It also shows the up and down in funds growth due to up and down of share market. During this period but it has never gown in loss. So it is a good investment option. As per Risk and Return:

Ratios Sharpe -0.12

Value

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Beta Treynor Sortino Fama

0.72 -0.75 -0.22 0.01

As per Portfolio:
Portfolio attributes P/E P/B Dividend Yield Market Capital (Cr) Large Mid Small Top five holding No. of stocks RELIANCE TAX SAVER FUND 23.82 as on July-2009 4.23 as on July-2009 0.97 as on July-2009 49,884.35 as on July-2009 45.99 as on July-2009 26.87 as on July-2009 4.10 as on July-2009 28.64 as on May-2009 34

Asset allocation:
Sector Equity Debt Cash & equivalent
RELIANCE TAX SAVER FUND

84.05 0.00 15.15

RELIANCE VISION FUND: On the basis of features:

RELIANCE VISION FUND Fund Feature Type of scheme Nature Open Ended Equity

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Option Inception Date Face value (Rs/Unit) Fund Size in Cr (as on July 31,2009) NAV calculation Minimum Investment Entry load Exit load Expense Ratio Portfolio turnover ratio (%) Increase/ Decrease in fund Size (as on May 2009)

Growth Oct 8, 1995 10 3716.51 Daily 380053 0% 1 % (0-3 year) for (0- 4.9 Cr) 1 % (0-10 days) for (> 5Cr 1.85 173 263.19 Cr

As per the historical NAV value:

Value NAV as on Aug 14,2009 52- Week high 52- Week low RELIANCE VISION FUND 210.69 216.92 as on Aug 5, 2009 116.66 as on Mar 9, 2009

NAV Graph:

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Interpretation: Above graph represents the RELIANCE VISION FUND (Growth) performance from 15-july-09 to 14-Aug-09. It has start at Rs.192.15 and last was at Rs. 210.69. This shows the 9.6% growth. It also shows the up and down in funds growth due to up and down of share market. But 3rd Aug 09 funds growing Rs. 217 after two or three day fund going down but after market up fund up finally during this period funs has never gown in loss. So it is a good investment option.

As per Risk and Return:

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RISK:
Ratios 0.13 Sharpe 0.79 Beta -0.78 Treynor -0.23 Sortino 0.02 Fama Value

As per Portfolio:
Portfolio attributes RELIANCE VISION FUND P/E P/B Dividend Yield Market Capital (Cr) Large Mid Small Top five holding No. of stocks 21.71 as on July-2009 3.87 as on July-2009 1.12 as on July-2009 70,765.54 as on July-2009 65.31 as on July-2009 13.02 as on July-2009 NA 25.73 as on May-2009 28

Asset allocation:
Sector Equity Debt Cash & equivalent RELIANCE VISION FUND 84.15 0.00 15.85

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Q1. Are you aware of all the financial products available in market? a. Yes b. No. c. Few of them
Response Yes No. Few of them No. of responded 75 20 25

Interpretation Question was ask to respondent to know the awareness about financial product and it was found that more than 62.5% people have good knowledge about financial product but 21% people have some knowledge about financial product and 16.5% people dont know anything about financial product. So its shows that there is lack of awareness between people about financial product and company have good scope also.

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Q2. Are you aware of Mutual Funds? a. Yes b. No.

Response Yes No. No. of responded 75 25

Interpretation

Question was asked to respondent to know the awareness

about mutual fund. Out of 120 only 100 are aware for financial product so on that basses it was found that more than 75% people have good knowledge about Mutual fund but 25% people have not knowledge about mutual fund So its shows that there is good scope of company to introduce new product and idea about the mutual fund so people know what is mutual fund.

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If Yes, Q2.1 what is your perception about Mutual Fund? a. A saving tool b. A tax saving device c. Return earning tool
Response A Saving tool A Tax saving tool Return earning tool No. of responded 15 25 35

Interpretation

In this question I asked to respondent to perception about

mutual fund and it was found that 47% people have invest in mutual fund as a return earning tool its shows good for those who earn extra income. And 33% people have mutual fund is a tax saving tool its shows that its a tax saving tool but 20% people have invest in mutual fund as an saving tool this is not good because mutual fund are risk to give always profit its depended on market.

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Q2.2Then has you invested in mutual funds? a. Yes b. No.

Response Yes No. No. of responded 60 15

Interpretation

Question was ask to respondent to invested in mutual fund

and it was found that those who are aware in mutual fund who are interested to invested in mutual. But only 80% are invested in mutual fund and 20% are still not invested in mutual fund because some personal reason like insufficient fund, high risk involves and other investment product.

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Q2.3Which Company you prefer to invest on Mutual funds? a. LIC b. Reliance c. ICICI pru. d. SBI

e. HDFC
Response LIC Reliance ICICI Pru. SBI HDFC No. of responded 7 17 12 11 13

Interpretation

Question was ask to respondent to which company you

prefer to invest mutual fund it was found that 28% are interested in Reliance mutual fund, 22% are interested in HDFC mutual fund,20% are interested in ICICI Pru., 18% are interested in SBI and rest 12% are interested in LIC. So 59

its show that company increase their market size because on one best in this field.

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Q2.4 On what basis you select a particular mutual fund? a. Brand Name b. Past Performance c. self monitoring of products & yields d. Any other source
Response Brand Name Past Performance Self monitoring of products & yields Any other source No. of responded 11 14 25 10

Interpretation

Question was ask to respondent to how you select mutual

fund 25 people are select mutual fund on the basses of self monitoring of product & yields because invested are not take risk, 14 people are investing in mutual fund on the basses of past performance, 11 people are investing on the bases of Brand name and rest 10 are investing on the basses of some other source like advisor and friends.

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Q.2.5 How long you keep your money in a particular mutual fund? a. < 1 year b. 1- 2 year c. 2- 3 year d. more than 3 years.
Response < 1 year 1-2 year 2-3 year More than 3 year No. of responded 10 22 18 10

Interpretation

Question was ask to respondent How long you invest you

money in mutual fund it was 36% are interested to save money 1-2 year because its give high return, 30% are interested to invest money for 2-3 year and 17% are invested money more than 3 year because some time funds give very high return. But 17% are invested money less than 1 year because high risk involve in the market so people interested invest money in market when market is good.

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3. IF No. Why? a. High risk involve b. Insufficient funds c. Other attractive investment products d. Complicated product features
Response High risk involve Insufficient fund Other attractive Inv. Products Complicated product features No. of responded 6 3 3 3

Interpretation

This question was ask to respondent who are not invested

money in mutual fund it was found that 40% people are not invested money in mutual fund because of high risk involve, 20% people are insufficient fund, 20% people not invested money in mutual fund due to other attractive investment product are available in market and rest 20% are interested due to complicated product features.

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Q3. Do you fell investing in stock market is safe? a. Yes b. No.

Response Yes No. No. of responded 55 65

Interpretation

Question was ask to respondent to how you fell invest in

stock market is safe it was found that 54% people says no invest in stock market is not safe because of high risk market condition etc. but 46% people says invest in stock market is safe.

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Q4. How do you rate a Fixed Deposit as an investment? a. Excellent b. Average c. Good
Response Excellent Average Good No. of responded 25 60 35

Interpretation Question was ask to respondent to know is fixed deposit is better than other investment product on that basses it was found that 60 people are rated average because there is no risk involve in fixed deposit, 35 people are rated good because investment in fixed deposit is fully safe and its give fixed return. And rest 25 people rated excellent. In this company introduces some fixed return product which gives investor as a safe side.

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Q5. Which channels will you preferred for your investments? a. Direct b. Internet c. Financial Advisors d. Brokerage houses
Response Direct Internet Financial Advisors Brokerage houses No. of responded 35 25 35 25

Interpretation Question was ask to respondent to which channels you prefers investment and it was found that 29% people go directly in investment company office and invest money because it is best way to invest money and know your investment company, 29% people invest money through financial advisors because financial advisors give the information about the fund which fund is best how long you invest your money etc.,21% people invest money through Brokerage houses because brokerage houses deal various financial

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product and 21% people invest money through internet because all company provide portal in their website. Q7. Do you have a D-mat/Trading account? a. Yes b. No.
Response Yes No. No. of responded 58 62

Interpretation

Question was ask to respondent to know have you a D-

mat/trading a/c and it was found that 58 people have no D-mat/trading A/c its shows that still people are not interested to trade in share market because of high risk and uncertainty share market. And 62 people have a D-mat/trading A/c so its shows that there is lack of awareness and knowledge about share market and company have good scope also.

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FINDINGS

Market Share of Reliance MF is higher as compare to other players. All the three mutual fund performed well before six months and earned very high returns but because of recession in world economy and slow down in Indian economy we can see a downfall in the returns in Mutual Fund three months back.

After three months the funds again started performing. One month back when market comes down to 12173.4 then we see declination in returns. The %age of investors is not equivalent to the non investors.

Preference of Brand in non Investors is more as compare to the Investors as Investors are experience of MF investment and thus they also consider the other aspects.

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CONCLUSION
Mutual Fund is a safe mode of investment, and as Reliance is an aggressive company, thus even with some risk is involve Investment in Reliance MF can be proved beneficial, if the investment is made for high returns. Most of the MF investors scale all the aspects before investment in Mutual Funds.

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RECOMMENDATION
If Reliance could come up with a mutual fund on some top companies as top 100, then it can attract more consumers and satisfy their needs. Reliance should also come up with some thematic plans on specific sectors. Reliance Infrastructure MF should tap as many consumers as possible by mode of proper advertisement, so that to more and more people can become aware of the company offer as still there are many who are not aware of the Mutual Funds.

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BIBLIOGRAPHY
Bhole L.M.,Financial Institution and Market, McGrawHill, 2007. Mahatur Jitendra, L.M Bhole,Financial Institution and Market, McGraw Hill, 2009. Khan M.Y. Indian Financial System", Tata, McGraw Hill, 2007. Kothari,C.R. Research methodology ,methods & techniques, New age international (p) limited,2006 Pandey I. M., Financial Management, 9th edition, Vikas Publishing House, 2008. Chandra Prasanna, Financial Management: Theory and Practice, Tata McGraw-Hill, 2004. Chandra Prasanna, Fundamentals of Financial Management, Tata McGraw-Hill, 2005. Marathe Ujjwal, Investing in Mutual Funds, Utkarsh Prakashan, 2005.

Reference from websites

www.reliancemoney.com www.reliancecapital.com www.amfi.com www.mutualfundsindia.com www.bse.com www.moneyguide.com http://simulator.investopedia.com/ http://www.moneysmartz.com/info/190665 http://www.morningstar.com/ http://www.vanguard.com/ http://finance.yahoo.com/funds http://www.reliancemutual.com/ http://www.investorwords.com/3173/mutual_fund.html http://finance.indiamart.com/markets/mutual_funds/ www.mydeltaquest.com 71

http://www.mfea.com/ http://www.statbrain.com/www.mutualfundsindia.com/

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Annexure
QUESTIONAIRE

1. Are you aware of all the financial products available in market? Yes / No/ Few of them. Response: 2. Are you aware of Mutual Funds? Yes / No Response: If yes, a. What is your perception about Mutual Fund? A saving tool/ a tax saving device/ Return earning tool/ any other (mention) Response: b. Then have you invested in mutual funds? Yes/ No. Response: c. Which company you prefer to invest on for Mutual funds? LIC/ Reliance/ ICICI/ SBI/ Religare/ Bharti Axa/ Taurus/ Any other (mention) Response: d. On what basis you select a particular mutual fund? Brand Name/ Good services/ High Yield/ Advertisement/ Past performance/ Friends advice/ self monitoring of products & yields/ as advised by financial advisor/ any other. Response: e. How long you keep your money in a particular mutual fund? < 1 year/ 1- 2 year/ 2- 3 year/ more than 3 years. 73

Response: f. If no, then Why? High risk involve/ insufficient funds/ other attractive investment products/ Complicated product features/ not advised by financial advisor/ Complicated application forms & doc. required/ any other (mention) Response: 3. Do you fell investing in stock market is safe? Yes/ No. Response: 4. How do you rate a Fixed Deposit as an investment? Average/Good/Excellent Response: 5. Which channels will you preferred for your investments? Direct/ Internet/ My local CA/ public sector banks/ Private sector banks/ Brokerage houses/ through financial advisors/ any other (mention). Response: 6. Do you have a D-mat/Trading account? Yes/ No. Response:

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