SUGGESTING INVESTMENT PLANS TO SMEs WITH

RELIANCE MUTUAL FUND

Submitted by

Rajarajan. p
OBJECTIVE:
 Analyzing how SMES maintains their cash
inflows and outflows.
 Suggesting SMES the various investment plans
offered by reliance mutual fund (RMF) like liquid
funds, Liquid plus funds, and weekend parking.
 Suggesting SMES the better investment options
and awareness about mutual funds.
NEED FOR THE STUDY:
 To suggest better investment options to SMEs by
using various plans offered by RMF.
 To increase the potential growth of the SMES by
suggesting them the investment options in mutual
funds.
 To study and understand the behavior and
perception of the SMES, about mutual funds and
distribution channels for the same.
 Identifying the various types of company’s
investment policies.
SCOPE OF STUDY:
 To create an awareness to SMEs regarding mutual funds.
 To suggest them with the best plans offered by RMF that
suits the company’s nature of cash flow.
 Identifying whether the nature of SMEs investments are
either in debt or equity.
 Identifying the nature of business, duration of existence of
the company and nature of their clientele.
 Identifying the company’s nature of cash flow and various
offers offered by their banker.
FINDINGS:
 Regarding investment knowledge most of the companies
possess only moderate or low investment knowledge about
mutual funds.
 Most of the SMEs are maintaining their funds in current
account and bank deposits.
 Except few most of the companies are investing their
funds in long term instruments.
 As for as analyzed most of the SMEs expect a return of
about 6-10%.
 Most of the companies are interested to invest in debt
instruments rather than equity.
 Most of the companies are responded positively that they
will be investing in mutual funds if they were been guided
properly.
 Most of the SMEs investment plans are made by
accountant rather than financial planner or portfolio
manager.
 Most of the SMEs investments in mutual funds are mainly
based on the brand name and highly rated portfolio’s
which gives them their expected returns.
 It is identified that most of the companies analyzed had
invested in mutual funds, in that some of the companies
are not having a very good opinion about the return they
got through mutual funds.
 It is identified that most of the companies analyzed are
interested in liquid investments.
RECOMMENDATIONS:
 Most of the companies are expecting moderate return with minimum
risk. So the companies like reliance mutual funds which possess high
rating portfolio’s having a wider scope in the SME markets.
 Most of the companies are parking their surplus in current account
and fixed deposits, so these companies can be guided with better
mutual fund plans.
 Most of the companies are investing their surplus in long term
instruments, so it would be better to suggest these companies with
liquid plus plans offered by RMF.
 Most of the companies expecting a return of about 6 to 10 % which
will be possible only if the companies invest with long term
instruments preferably in debt instruments.
 There are some companies which do not generate any surplus; these
companies can park their working capital with RMF concept called as
weekend parking.
 Most of the companies preferring their portfolio
composition as debt being at larger composition than
equity, and some preferring the sandwich of these to
things. This gives us a conclusion that companies
investment plans are contradicting with mutual funds.
 Most of the companies are responded positively that they
will be investing in mutual funds if they were been guided
properly. This shows that there is wider scope is there for
mutual funds in SME segments.
 As the SMEs investments plans are made by accountant
who probably doesn’t possess that much knowledge about
mutual funds.
 Most of the companies preferring mutual funds based on
the brand name and returns given by them. So RMF having
a very good brand name holds a better position in SME
segments.
LIMITATIONS:
 The time constraint was one of the major problems.
 The study is limited to few schemes available under the reliance
mutual funds.
 The lack of information sources about the companies was the major
drawback to get information regarding companies cash flows.
 In most of the companies the client met posses only low cadre in
finance department restricts to arrive at a better solutions.
 Every plans posses at least two to three restrictions its very difficult to
satisfy the clients with necessary solutions they expect.
 We got no plans to do with the companies maintaining only over draft
account.
CONCLUSION:
 Mutual Fund investment is better among the other fund raising options
available in the market. Reliance Mutual Fund has providing very
good returns on investments. A good brand is always welcomed
among SMEs and people are more aware and conscious for the brand
name. They are ready to spend some extra amount for the quality.
 Most of the SMEs are unaware about the various new schemes
introduced in the market by RMF. Once these schemes were been
clearly explained to them there is wider scope for the RMF to flourish
among the SME segments.
 Some of the SMEs are having a very bad opinion about mutual funds
because of their past experience, their mind set can be changed by
guiding by explaining the top rated papers possess by RMF.
 SMEs can improve their investment options by investing in mutual
funds, for low risk and high security SMEs can rely on top rated
instruments offered by renowned organization like RMF.