Reliance mutual fund profile

Reliance Mutual Fund –

Reliance Mutual Fund, a part of the Reliance Anil Dhirubhai Ambani Group is the No. 1 Mutual
Fund in India. Reliance Mutual Fund offers investors a well-rounded portfolio of products to meet
varying investor requirements. Reliance Mutual Fund has a presence in over 100 cities across the
country, an investor base of over 3.9 million and manages assets over Rs. 67,598 Crores as on
August 31, 2007. Reliance Mutual Fund 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. Reliance Capital Ltd. is one of India’s leading
and fastest growing private sector financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has
interests in asset management and mutual funds, life and general insurance, private equity and
proprietary investments, stock broking and other financial services.

No.1 basis Assets under Management (AUM) as on August 31, 2007.

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HISTORICAL BACKGROUND

History of Reliance Company

The Reliance group founded by Dhirubhai H. Ambani (1932-2002) is India’s largest private sector
enterprise. He is credited to have brought about equity cult in India in the late seventies and is
regarded as an icon for enterprise in India. The Reliance group is a living testimony to his
indomitable will, single minded dedication and an unrelenting commitment to his goals.
Unit trust of India is the first mutual fund setup under the separate Act UTI ACTin 1963 and started
its operations in 1964 with the issue of schemes US-641. In 1978 UTI was delinked from 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 bank like state bank of India, Punjab national bank, Indian bank,
bank of India, and bank of Baroda have set up mutual funds.
Apart from the abovementioned banks life insurance corporation (LIC) and general Insurance
Corporation too have setup mutual funds. LIC established its mutual funds in june1989 while gic
had set up its mutual funds in December 1990. The mutual fund industry had assets under
management of RS 47,004 crore.
With the entry of private sector funds a new era has started in mutual funds industry e.g. Principal
mutual fund.

SEBI REGISTRATION

RMF has been register with the security and exchange board of India vide registration number
MF./022/95/1 dated June 30, 1995. The name of the Reliance capital mutual FUND HAS BEEN
CHANGED to reliance mutual fund effective 11th.March 2004 vide sebi letters number
IMD/PSP/4958/2008 Date 11th march 2004. Reliance mutual fund was formed to launch various
schemes under which units are issued to the public with a view to contribute to the capital market
marker and to provide investors the opportunity to make investment in diversified securities and
reliance growth fund, vision fund, power fund, banking fund media and entertainment fund etc.

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VISION AND MISSION STATEMENT

Vision statement
To be a globally respected wealth creator with an emphasis on customer care and a culture of good
corporate governance.

Mission statement

To create and nurture a world class high performance environment aimed at delighting our
customers.

OBJECTIVES OF THE STUDY:

 The study level of satisfaction of customers towards Reliance Mutual Fund.
 To find the factors which are responsible for slow growth of mutual funds.
 To create awareness of the customers towards toward Reliance Mutual Fund.

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CONCEPT OF MUTUAL FUNDS:

A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciation realized are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

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Organization of Mutual Funds in India:-

There are many entities involved and the diagram below illustrates the organizational set up of a
mutual fund:

Organization of a Mutual Fund

Types of mutual fund schemes

 By structure :

 Open - ended schemes

 Close - ended schemes
 Interval schemes

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 By investment objective
 Growth schemes
 Income schemes
 Balanced schemes
 Money market schemes
 Other schemes
 tax saving schemes
 special schemes
i. index schemes
ii. sector specific schemes

MUTUAL FUNDS INDUSTRY IN INDIA:-

The origin of mutual fund industry in India is with the introduction of the concept of mutual
fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year
1987 when non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen dramatic improvements, both quality
wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase;
the Assets under Management (AUM) was Rs. 67bn. The private sector entry to the fund
family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height
of 1,540 bn.

The main reason of its poor growth is that the mutual fund industry in India is new in the
country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence,
it is the prime responsibility of all mutual fund companies, to market the product correctly
abreast of selling.

The mutual fund industry can be broadly put into four phases according to the development
of the sector. Each phase is briefly described as under.

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ADVANTAGES OF MUTUAL FUNDS:

The advantages of investing in a Mutual Fund are:

• Diversification: The best mutual funds design their portfolios so individual investments will
react differently to the same economic conditions. For example, economic conditions like a
rise in interest rates may cause certain securities in a diversified portfolio to decrease in value.
Other securities in the portfolio will respond to the same economic conditions by increasing in
value. When a portfolio is balanced in this way, the value of the overall portfolio should
gradually increase over time, even if some securities lose value.

• Professional Management: Most mutual funds pay topflight professionals to manage their
investments. These managers decide what securities the fund will buy and sell.

• Regulatory oversight: Mutual funds are subject to many government regulations that protect
investors from fraud.

• Liquidity: It's easy to get your money out of a mutual fund. Write a check, make a call, and
you've got the cash.

• Convenience: You can usually buy mutual fund shares by mail, phone, or over the Internet.

• Low cost: Mutual fund expenses are often no more than 1.5 percent of your investment.
Expenses for Index Funds are less than that, because index funds are not actively managed.
Instead, they automatically buy stock in companies that are listed on a specific index

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Types of Mutual Fund

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Mutual Funds: Different Types of Funds

No matter what type of investor you are there is bound to be a mutual fund that fits your style.
According to the last count there are over 10,000 mutual funds in North America! That means
there are more mutual funds than Mutuals. It's important to understand that each mutual fund has
different risks and rewards. In general, the higher the potential return, the higher the risk of loss.
Although some funds are less risky than others, all funds have some level of risk--it's never
possible to diversify away all risk. This is a fact for all investments.

Each fund has a predetermined investment objective that tailors the fund's assets, regions
of investments, and investment strategies. At the fundamental level, there are three
varieties:
1)Equity-funds(Mutual)
2)Fixed-incomefunds(bonds)
3) Money market funds

All mutual funds are variations of these three asset classes. For example, while equity Funds that
invest in fast-growing companies are known as growth funds, equity funds that Invest only in
companies of the same sector or region is known as specialty funds. Let’s go over the many
different flavors of funds. We'll start with the safest and then Work through to the more risky.

 Money Market Funds

The money market consists of short-term debt instruments, mostly T-bills. This is a safe Lace to
park your money. You won't get great returns, but you won't have to worry about losing your
principal. A typical return is twice the amount you would earn in a regular checking/savings
account and a little less than the average certificate of deposit (CD).We've got a whole tutorial on
the money market if you'd like to learn more about it.

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  Bond/Income Funds

Income funds are named appropriately: their purpose is to provide current income on a steady
basis. When referring to mutual funds, the terms "fixed-income," "bond," and" income" are
synonymous. These terms denote funds that invest primarily in government and corporate debt.
While fund holdings may appreciate in value, the primary objective of these funds is to provide a
steady cash flow to investors. As such, the audience for these funds consists of conservative
investors and retirees.

Bond funds are likely to pay higher returns than certificates of deposit and money market
Investments, but bond funds aren't without risk. Because there are many different types of Bonds,
bond funds can vary dramatically depending on where they invest. For example, a fund
specializing in high-yield junk bonds is much more risky than a fund that invests in government
securities; also, nearly all bond funds are subject to interest rate risk, which means that if rates go
up the value of the fund goes down.

 Balanced Funds

The objective of these funds is to provide a "balanced" mixture of safety, income, and capital
appreciation. The strategy of balanced funds is to invest in a combination of fixed-income and
equities. A typical balanced fund might have a weighting of 60% equity and40% fixed-income.
The weighting might also be restricted to a specified maximum or minimum for each asset class.
A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a
balanced fund, but these kinds of funds typically do not have to hold a specified percentage of any
asset class. The portfolio manager is therefore given freedom to switch the ratio of asset classes as
the economy moves through the business cycle.

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  Equity Funds

Funds that invest in Mutual represent the largest category of mutual funds. Generally, the
investment objective of this class of funds is long-term capital growth with some income. There
are, however, many different types of equity funds because there are many different types of
equities. A great way to understand the universe of equity funds is to use a style box, an example
of which is below.
The idea is to classify funds based on both the size of the companies invested in and the investment
style of the manager. The term "value" refers to a style of investing that looks for high quality
companies that are out of favor with the market. These companies are characterized by low P/E
ratios, price-to-book ratios, and high dividend yields, etc.
The opposite of value is growth, which refers to companies that have had (and are expected to
continue to have) strong growth in earnings, sales, and cash flow, etc. A compromise between
value and growth is "blend," which simply refers to companies that are neither value nor growth
Mutual and so are classified as being somewhere in the middle.

 For example, a mutual fund that invests in large-cap companies who are in strong financial
shape but have recently seen their share price fall would be placed in the upper left quadrant
of the style box (large and value). The opposite of this would be a fund that invests in
startup technology companies with excellent growth prospects. Such a mutual would reside
in the bottom right quadrant

 Index Funds

The last but certainly not the least important are index funds. This type of mutual fund replicates
the performance of a broad market index such as the Sensex and nifty. An investor in an index
fund figures that most managers can't beat the market. An index fund merely replicates the market
return and benefits investors in the form of low fees.

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 THE VALUES OF YOUR FUND

Net asset value (NAV), which is a fund's assets minus liabilities, is the value of a mutual fund.
NAV per share is the value of one share in the mutual fund, and it is the number that is quoted in
newspapers. You can basically just think of NAV per share as the price of a mutual fund. It
fluctuates everyday as fund holdings and shares outstanding change.

When you buy shares, you pay the current NAV per share plus any sales front-end load. When you
sell your shares, the fund will pay you NAV less any back-end load .Moses gave to his follow
eternities 10 commandments that were to be followed till: The world of investments too has several
ground rules meant for investors who are novices in their own right and wish to enter the myriad
world of investments. These come in handy for there is every possibility of losing what one has if
due care is not taken.

1. Assess yourself: Self-assessment of one’s needs; expectations and risk profile is of prime
importance failing which; one will make more mistakes in putting money in right places than
otherwise. One should identify the degree of risk bearing capacity one has and also clearly state
the expectations from the investments. Irrational expectations will only bring pain.

2. Try to understand where the money is going: It is important to identify the nature of investment
and to know if one is compatible with the investment. One can lose substantially if one picks the
wrong kind of mutual fund. In order to avoid any confusion it is better to go through the literature
such as offer document and fact sheets that mutual fund companies provide on their funds.

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3. One first has to decide what he wants the money for and it is this investment goal that should
be the guiding light for all investments done. It is thus important to know the risks associated with
the fund and align it with the quantum of risk one is willing to take. One should take a look at the
portfolio of the funds for the purpose. Excessive exposure to any specific sector should be avoided,
as it will only add to the risk of the entire portfolio .Mutual funds invest with a certain ideology
such as the "Value Principle" or "Growth Philosophy". Both have their share of critics but both
philosophies work for investors of different kinds. Identifying the proposed investment philosophy
of the fund will give an insight into the kind of risks that it shall be taking in future.

4. A common investor is limited in the degree of risk that . It is thus of key importance that there
is thought given to the process of investment and to the time horizon of the intended investment.
One should abstain from speculating which in other words would mean getting out of one fund
and investing in another with the intention of making quick money. One would do well to
remember that nobody can perfectly time the market so staying invested is the best option unless
there are compelling reasons to exit.

5. This old age adage is of utmost importance. No matter what the risk profile of a person is, it is
always advisable to diversify the risks associated. So putting one’s money in different asset classes
is generally the best option as it averages the risks in each category. Thus, even investors of equity
should be judicious and invest some portion of the investment in debt. Diversification even in any
particular asset class (such as equity, debt) is good. Not all fund managers have the same acumen
of fund management and with identification of the best man being a tough task; it is good to place
money in the hands of several fund managers. This might reduce the maximum return possible,
but will also reduce the risks.

6. Investing should be a habit and not an exercise undertaken at one’s wishes, if one has to really
benefit from them. As we said earlier, since it is extremely difficult to know when to enter or exit
the market, it is important to beat the market by being systematic. The basic philosophy of Rupee
cost averaging would suggest that if one invests regularly through the ups and downs .of the
market, he would stand a better chance of generating more returns than the market for the entire
duration. The SIP s (Systematic Investment Plans) offered by all funds helps in being systematic.

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 All that one needs to do is to give post-dated cheques to the fund and thereafter one will not be
harried later. The Automatic investment Plans offered by some funds goes a step further, as the
amount can be directly/electronically transferred from the account of the investment

7. Do your homework:
It is important for all investors to research the avenues available to them irrespective of the investor
category they belong to. This is important because an informed investor is in a better decision to
make right decisions. Having identified the risks associated with the investment is important and
so one should try to know all aspects associated with it. Asking the intermediaries is one of the
ways to take care of the problem.

8. Find the right funds

Finding funds that do not charge many fees is of importance, as the fee charged ultimately goes
from the pocket of the investor. This is even more important for debt funds as the returns from
these funds are not much. Funds that charge more will reduce the yield to the investor. Finding the
right funds is important and one should also use these funds for tax efficiency. Investors of equity
should keep in mind that all dividends are currently tax-free in India and so their tax liabilities can
be reduced if the dividend payout option is used. Investors of debt will be charged a tax on dividend
distribution and so can easily avoid the payout options.

9. Keep track of your investments

Finding the right fund is important but even more important is to keep track of the way they are
performing in the market. If the market is beginning to enter a bearish phase, then investors of
equity too will benefit by switching to debt funds as the losses can be minimized. One can always
switch back to equity if the equity market starts to show some buoyancy.

10. Know when to sell your mutual funds:

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Knowing when to exit a fund too is of utmost importance. One should book profits immediately
when enough has been earned i.e. the initial expectation from the fund has been met with. Other
factors like non-performance, hike in fee charged and change in any basic attribute of the fund etc.
are some of the reasons for to exit. For more on it, read "When to say goodbye to your mutual
fund.”

DEVELOPMENT OF MUTUAL FUND IN INDIA

The mutual fund industry in India started in 1963 with the formation of unit trust of India at the
initiative of government of India and reserve bank of India. The history Of mutual fund.

IN INDIA CAN BE DIVIDED INTO FOUR PHASES:

FIRST PHASE : 1964 – 87

SECOND PHASE: 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS)

THIRD PHASE : 1993 – 2003 (ENTRY OF PRIVATE SECTOR FUNDS)

FOURTH PHASE: SINCE FEBURARY 2003

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank of India. The history of mutual funds
in India can be broadly divided into four distinct phases

First Phase – 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament.
It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative
control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in place of

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RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,
700 crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI,
public sector mutual funds set up by public sector banks and Life Insurance Corporation of India
(LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fund established in June 1987 followed by Canara bank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun
90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while
GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry
had assets under management of Rs.47, 004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds) with the entry of private sector funds
in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider
choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came
into being, under which all mutual funds, except UTI were to be registered and governed. The
erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted
by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses
went on increasing, with many foreign mutual funds setting up funds in India and also the industry
has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33
mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541
crores of assets under management was way ahead of other mutual funds.

Fourth Phase – since February 2003 In February 2003, following the repeal of the Unit Trust of
India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of
the Unit Trust of India with assets under management of Rs.29, 835 crores as at the end of January
2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes.

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The Specified Undertaking of Unit Trust of India, functioning under an administrator and under
the rules framed by Government of India and does not come under the purview of the Mutual Fund
Regulations. The second is the UTI Mutual Fund, 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.

REGULATORY BODIES

Financial System is basically responsible for the major up and downs in the Economy. So, there
are some regulatory bodies on it which ensures effectiveness. In the management of Fund of the
investors and transparency in the transactions.

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 ABOUT RELIANCE MUTUAL FUNDS

Reliance mutual funds is one of the India’s leading mutual fund with average asset under
management of Rs. 1,12,914 crores (April 14 – June 14 quarter ) and 52.69 Lakhs folios. (30thjune
2014). Source http://www.amfiindia.com.

Reliance mutual funds is a part of reliance group is one of the fastest growing mutual funds in
India. RMF offers investors a well-rounded portfolio of products to meet varying investors
requirement and has a presence in 179 cities across the country Reliance mutual funds constantly
endeavors to launch innovative products and customer service initiatives to increase value to
investors. Reliance capital asset management limited (RCAM) is the set manager of the reliance
mutual fund. RCAM is a subsidiary of reliance capital limited (RCL).

Presently, RCL holds Upto 65.23% of its total issued and paid up equity share capital and the
balance of its issue and paid up equity share capital is held by other shareholders which includes
Nippon life insurance company (“NLI” ) holding 26% of RCAM’s total issued and paid up equity
share capital . NLI acquired the said 26% shareholding in RCAM on august 17, 2012.
Reliance capital ltd is one of India’s leading and fastest growing private sector financial services
companies and ranks among the top 3 private sector financial services and banking companies in
terms of net worth. Reliance capital ltd has interest in asset management, life and general
insurance, private equity and proprietary investments, stock broking and other financial services.

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PRODUCTS:

1. Equity/Growth Schemes:

The aim of growth funds is to provide capital appreciation over the medium to long- term. Such
schemes normally invest a major part of their corpus in equities. Such funds have comparatively
high risks. These schemes provide different options to the investors like dividend option, capital
appreciation, etc. and the investors may choose an option depending on their preferences. The
investors must indicate the option in the application form. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for investors having a
long-term outlook seeking appreciation over a period of time.

1. Reliance Equity Fund:-

(An open-ended diversified Equity Scheme.) The primary investment objective of the scheme is
to seek to generate capital appreciation & provide long-term growth opportunities by investing in
a portfolio constituted of equity & equity related securities of top 100 companies by market
capitalization & of companies which are available in the derivatives segment from time to time
and the secondary objective is to generate consistent returns by investing in debt and money market

securities.

2. Reliance Tax Saver (ELSS) Fund :-

(An Open-ended Equity Linked Savings Scheme.) The primary objective of the scheme is to
generate long-term capital appreciation from a portfolio that is invested predominantly in equity
and equity related instruments.

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 3. Reliance Equity Opportunities Fund :-

(An Open-Ended Diversified Equity Scheme.) The primary investment objective of the scheme is
to seek to generate capital appreciation & provide long-term growth opportunities by investing in
a portfolio constituted of equity securities & equity related securities and the secondary objective
is to generate consistent returns by investing in debt and money market securities.

4. Reliance Vision Fund:

(An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to
achieve long term growth of capital by investment in equity and equity related securities through
a research based investment approach.

5. Reliance Growth Fund:

(An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to
achieve long term growth of capital by investment in equity and equity related securities through
a research based investment approach.

6. Reliance Index Fund :-

(An Open Ended Index Linked Scheme.) The Investment Objective under the Nifty Plan is to
replicate the composition of the Nifty, with a view to endeavor to generate returns, which could
approximately be the same as that of Nifty. The Investment Objective under the Sensex plan is to
replicate the composition of the Sensex, with a view to endeavor to generate returns, which could
approximately be the same as that of Sensex.

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 7. Reliance NRI Equity Fund :-

(An open-ended Diversified Equity Scheme.) The Primary investment objective of the scheme is
to generate optimal returns by investing in equity or equity related instruments primarily drawn
from the Companies in the BSE 200 Index.

8. Reliance Regular Savings Fund:-

(An Open-ended Scheme.) Equity Option: The primary investment objective of this option is to
seek capital appreciation and/or to generate consistent returns by actively investing in Equity
&Equity-related Securities.

BALANCED OPTION:

The primary investment objective of this option is to generate consistent returns and appreciation
of capital by investing in mix of securities comprising of equity, equity related instruments & fixed
income instruments.

1. Reliance Long Term Equity Fund:

(An close-ended Diversified Equity Scheme.) The primary investment objective of the scheme is
to seek to generate long term capital appreciation & provide long-term growth opportunities by
investing in a portfolio constituted of equity & equity related securities and Derivatives and the
secondary objective is to generate consistent returns by investing in debt and money market
securities.

2. Reliance Equity Advantage Fund:

(An open-ended Diversified Equity Scheme.) The primary investment objective of the scheme is
to seek to generate capital appreciation & provide long-term growth opportunities by investing in
a portfolio predominantly of equity & equity related instruments with investments generally in S
& P CNX Nifty stocks and the secondary objective is to generate consistent returns by investing
in debt and money market securities

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 2. Debt/Income Schemes

The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Government
securities and money market instruments. Such funds are less risky compared to equity schemes.
These funds are not affected because of fluctuations in equity markets. However, opportunities of
capital appreciation are also limited in such funds. The NAVs of such funds are affected because
of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely
to increase in the short run and vice versa. However, long term investors may not bother about
these fluctuations.

1. Reliance Monthly Income Plan :

(An Open Ended Fund. Monthly Income is not assured & is subject to the availability of
distributable surplus ) The Primary investment objective of the Scheme is to generate regular
income in order to make regular dividend payments to unit holders and the secondary objective is
growth of capital.

2. Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt Plan :

Open-ended Government Securities Scheme) The primary objective of the Scheme is to generate
Optimal credit risk-free returns by investing in a portfolio of securities issued and guaranteed by
the central Government and State Government

Reliance Income Fund:

(An Open-ended Income Scheme) The primary objective of the scheme is to generate optimal
returns consistent with moderate levels of risk. This income may be complemented by capital
appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt &
Money market instruments.

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Reliance Medium Term Fund:

(An Open End Income Scheme with no assured returns.) The primary investment objective of the
Scheme is to generate regular income in order to make regular dividend payments to unit holders
and the secondary objective is growth of capital

Reliance Short Term Fund :

(An Open End Income Scheme) The primary investment objective of the scheme is to generate
stable returns for investors with a short investment horizon by investing in Fixed Income Securities
of short term maturity.

Reliance Liquid Fund :

(Open-ended Liquid Scheme). The primary investment objective of the Scheme is to generate
optimal returns consistent with moderate levels of risk and high liquidity. Accordingly,
investments shall predominantly be made in Debt and Money Market Instrument.

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THE FUNDS WHICH WE LEARN IN RELIANCE MUTUAL FUND

RELIANCE MUTUAL FUND (EQUITY)

RELIANCE MUTUAL FUND

(EQUITY) DIVERSIFIED LARGE
CAP

RELIANCE VISION RELIANCE TOP 200

FUND FUND

RELIANCE VISION FUND:

The primary investment objective of this scheme is to achieve a long term growth of capital
by investing in equities and equity related securities through a research based investment
approach.

FUND DATA:

Type……Open ended Equity Growth Scheme.

Allotment/Inception Date……08-Oct-1995

Equities…..97.86%

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RELIANCE TOP 200 FUND

The primary investment objective of this scheme is to achieve a long term growth of capital
by investing in equities and equity related securities through a research based investment
approach within the range of highest and lowest market.

FUND DATA:

Type…….Open ended Diversified Equity Scheme

Allotment/ Inception Date…….08-Aug-2007

Equity……98.40%

RELIANCE MID CAP AND SMALL CAP

DIVERSIFIED MID AND SMALL CAP FUND

RELIANCE GROWTH FUND RELIANCE MID AND

SMALL CAP FUND

RELIANCE SMALL CAP FUND

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RELIANCE GROWTH FUND

The primary investment of this scheme is to achieve long term growth of capital by investing in
equities and equity related scheme through a research based investment approach

FUND DATA:

Type……..Open ended Equity Growth scheme

Allotment/Inception date……….8-Oct-1995

Equity……95.50%

REIANCE MID AND SMALL CAP FUND

The primary objective of this scheme is to seek long term capital generation opportunities by
investing in portfolio constituted of equity and equity related securities.

FUND DATA:

Type……An open Ended Diversified Equity Scheme

Allotment/Inception………27-Dec-2006

Equity…….98.88%

RELIANCE SMALL CAP FUND

The primary investment of this scheme is to achieve long term growth of capital by investing in
equities and equity related scheme through a research based investment approach

FUND DATA:

Type…… an Open Ended Equity Scheme

Allotment/Inception Date…..16-Sep-2016

Equity….93.67

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DIVERSIFIED MULTI CAP FUND

DIVERSIFIES MULTI CAP FUND

RELIANCE REGULAR RELIANCE EQUITY

SAVING FUND OPPORTUNITY FUND

RELIANCE REGULAR SAVING FUND

The primary investment objective of this scheme is to seek capital appreciation and to generate
consistent returns in investing in equity and equity related securities.

FUND DATA:
TYPE…….Open Ended Scheme
Allotment/Inception Date…….08-Jun-2005
Equity…..97.63%

RELIANCE EQUITY OPPORTUNITY FUND

28
The primary investment objective of this scheme is to seek and generate capital appreciation and
providing long term growth opportunities by investing in portfolio constituted to equity security
and equity related securities.

FUND DATA
Type………Open ended Diversified Equity Scheme
Allotment/Inception Date……..28-MAR-2005
Equity……..99.07%

RELIANCE BALANCE FUND

RELIANCE BALANCED FUND

RELIANCE REGULAR SAVING RELIANCE EQITY SAVING

FUND ( BALANCED FUND
FUND )

RELIANCE REGULAR SAVING FUND (BALANCED FUND)

The primary objective of this option is to generate consistence return and appreciation of capital
by investing in of mix of securities compirising of equity and equity related instrument and fixed
income requirement.

FUND DATA
Type…………open-ended scheme
29
Allotment/Inception Date…..08-jun-2005
Equity……71.38%

RELIANCE EQUITY SAVING FUND

The primary investment objective of this fund is to generate income and capital appreciation by
investing in arbitrage opportunity & pure equity investment along with investment in debt
securities & money market instrument. However, there can be no assurance or gauarantee that
the investment objective of the scheme will be achieved.

Fund data
Type……..open-ended equity scheme
Allotement/inception Date……30-may-2015
Equity……66.89%

Tax saver

Reliance Tax saver fund (ELSS) Fund

The primary objective of the scheme is to generate long-term capital appreciatrion from a
portfolio that is investment predominantly in equity and equity related instruments.
However, there can be no assurance that the scheme’s investment objective shall be achieved.

Fund data
Type…..open-ended Equity linked Saving Scheme
Allotement/Inception Date….21 Sep-2005, Equity….98.72%

Reliance long term (Fixed income)

30
Reliance Regular Saving Fund-Debt option

The primary investment objective of this option is to generate optimal returns consistent with
moderate level of risk. This income may be complemented by capital appreciation of the
portfolio According investments shall predominatly be made in debt & money market instrument

Fund Data
Fund manager …..Prashant pimple
Type …..open s- ended scheme
Allotment/inception Date….08-jun-2005

SWOT ANALYSIS:-

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a business venture. It involves specifying the objective of
the business venture or project and identifying the internal and external factors that are favourable
and unfavorable to achieve that objective.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis
may be incorporated into the strategic planning model. Strengths: attributes of the person or
company that is helpful to achieving the objectives.
 Weaknesses: attributes of the person or company that is harmful to achieving the
objectives.
 Opportunities: external conditions that is helpful to achieving the objectives.
 Threats: external conditions which could do damage to the objectives.

Identification of SWOTs is essential because subsequent steps in the process of planning for
achievement of the selected objective may be derived from the SWOT .Identification the threats
and opportunities in the environment and strength weakness of the firm is the basis of business
policy formulation; these factors determine the course of action to ensure the survival or growth
of the firm. The environment might present many opportunities but a company might not have the
strengths to exploit all opportunities. Similarly, sometimes a firm will not have the strengths to
31
meet the environmental threats. If a company thus finds that it will not have the competence to
survive in a particular line of business, it will prudent to give up and concentrate on such business
for which the firm is most competent.

I. STRENGTH

 Brand strategy:
 As opposed to some of its competitors (e.g. HSBC), Reliance mutual funds operates a
multi-brand strategy. The company operates under numerous well-known brand names,
which allows the company to appeal to many different segments of the market.

 Distribution channel strategy: Reliance is continuously improving the distribution of its

products. Its online and Internet-based access offers a combination of excellent growth.
 There are well trained and experienced development officer for guiding agent.
 Agents are business minded and experienced in this profession.
 The company has the direct marketing network with well established distribution
system.
 The company has fully computerized departments and production units and corporate
office is connected through intranet.

II. WEAKNESS

 Emerging markets since there is more investment demand in the United States, Japan and
the rest of Asia. Reliance should concentrate on these markets, especially in view of low
global interest rates.

 Mutual funds are like many other investments without a guaranteed return . There is always
the possibility that the value of your mutual fund will depreciate. Unlike fixed-income
products, such as bonds and Treasury bills, mutual funds experience price fluctuations
along with the stocks that make up the fund. When deciding on a particular fund to buy,
you need to research the risks involved – just because a professional manager is looking
after the fund, that doesn’t mean the performance will be stellar.

32
  Fees: In mutual funds, the fees are classified into two categories: shareholder fees and
annual operating fees. The shareholder fees, in the forms of loads and redemption fees are
paid directly by shareholders purchasing or selling the funds. The annual fund operating
fees are charged as an annual percentage – usually ranging from 1-3%. These fees are
assessed to mutual fund investors regardless of the performance of the fund. As you can
imagine, in years when the fund doesn’t make money, these fees only magnify losses.

 The middle class population that we are eyeing at are today overburdened, first by
inflationary pressures on their pockets and then by the tax net.
 It is not an independent decision making on, it always dependent to national economic
conditions
 It should follow the updating Indian economic norms.

III. OPPORTUNITIES

 Potential markets: The Indian rural market has great potential. All the major market leaders
consider the segments and real markets for their products. A senior official in a one of the
leading company says foray into rural India already started and there has been realization
that the rural market is both price and quantity conscious.
 Entry of MNCs: Due to multinationals are entering into market job opportunities are
increasing day by day. Also India Mutual Fund majors are tie up with other financial
institutions.
 Mutual fund market is very big, where company can expand its horizon in insurance
industry.
 Globalization of the economy has helped the organization to overcome operational
restrictions.

IV. THREATS

 Hedge funds: Sometimes referred to as as hot money, are also causing a threat for mutual
funds have gained worldwide notoriety for bringing the markets down. Be it a crash in the

33
 currency, A stock or A bond market, A usually a hedge fund prominently figures
somewhere in the picture.
 The investors in the capital may turn their face off in case the rate of return on capital falls
short of the existing rate of return on capital.
 It’s still difficult task to win the confidence of public towards mutual company.
 Highly competitive market The Company is facing some threats from other private
companies.

METHODOLOGY

DATA COLLECTION

There are several ways of collecting the appropriate data which differ considering in context of
money, costs, time, and other resources data can be collected through different sources.

Primary data
Primary data was collected through survey method by distributing questionnaire to the different
customers of reliance mutual funds.

Secondary data
The secondary data collection includes collection of data through sources like

1. Fund facts sheets of different AMC’S that are considered for the analysis purpose
2. The NAV’s are taken from AMFI & websites of the AMC’S under consideration
3. From record, report, magazine and websites or RMF.

34
DATA ANALYSIS AND INTERPRETATION TABLE: 1

As a financial planner in Reliance mutual fund product falls under your product bucket

PARTICULARS NUMBER OF RESPONDENTS PERCENTAGE

Yes 30 100
No 0 0
Total 30 100

ANALYSIS
100% of the respondents agree that as a financial planner RMF product falls under customers
product bucket.

PERCENTAGE

EXCELLENT
VERY GOOD

NUMBER OF RESPONDENTS

0 20 40 60 80 100

INTERPRETATION
All the respondents agree that as a financial planner RMF product falls under their product bucket.

35
TABLE: 2
Rating the performance of Reliance Mutual Funds

PARTICULARS NUMBER OF RESPONDENTS PERCENTAGE

Excellent 8 27
Very Good 20 67
Good 2 6
Moderate 0 0
Total 30 100

ANALYSIS
67% of the respondents rate performance of RMF is Very Good, 27% rate excellent, and 6% rate
Good

FAIR

GOOD
NUMBER OF
RESPONDENTS
PERCENTAGE
VERY GOOD

EXCELLENT

0 10 20 30 40 50 60

Interpretation
Majority of the respondents rate the performance of RMF is Very Good.

36
TABLE: 3
Rating the services provided by Reliance Mutual Funds?

PARTICULARS NUMBER OF RESPONDENTS PERCENTAGE

Very Satisfied 5 17
Satisfied 17 57
Neither Satisfied 7 23
Nor Dissatisfied
Dissatisfied 1 3
Very Dissatisfied 0 0
Total 30 100

ANALYSIS
According to the analysis, 57% of the respondents rate the services provided by RMF is Good,
23% rate Average, 17% rate Excellent, and 3% rate as Below Average.

POOR

FAIR

PERCENTAGE
GOOD
NUMBER OF
RESPONDENTS
VERY GOOD

EXCELLENT

0 10 20 30 40 50

Interpretation
Majority of the respondents rate the services provided by RMF as Good.

37
TABLE: 4
While taking a investment decision what matters a lot

PARTICULARS NUMBER OF RESPONDENTS PERCENTAGE

AMC 0 0
Performance 22 73
Consistency 8 27
Service 0 0
Fund Manager 0 0
Total 30 100

ANALYSIS
73% of the respondents feel that while taking a investment decision Performance matters a lot, and
27% Consistency is considered.

POOR

FAIR

PERCENTAGE
GOOD
NUMBER OF
RESPONDENTS
VERY GOOD

EXCELLENT

0 10 20 30 40 50

INTERPRETATION
Majority of the respondents feel that while taking a decision Performance matters a lot.

38
Table: 5
RMF has a sizable impact as compared to its peers in MF industry

PARTICULARS NUMBER OF RESPONDENTS PERCENTAGE

Yes 30 100
No 0 0
Total 30 100

ANALYSIS
All the respondents tell Yes that RMF has a sizable impact as compared to its peers in MF industry.

PERCENTAGE

NUMBER OF RESPONDENTS

0 20 40 60 80 100

Interpretation
All the respondents tell Yes that RMF has a sizable impact as compared to its peers in MF industry

39
TABLE: 6
RMF is very helpful in analyzing and making right choice of investments to the distributors

PARTICULARS NUMBER OF RESPONDENTS PERCENTAGE

Yes 26 87
No 0 0
To some extent 4 13
Total 30 100

ANALYSIS
87% of the respondents tell that RMF is very helpful in analyzing & making right choice of
investments to the investors, 13% tell To some extent.

GOOD

PERCENTAGE
VERY GOOD
NUMBER OF
RESPONDENTS

EXCELLENT

0 10 20 30 40 50

INTERPRETATION
Majority of the respondents tell Yes RMF is very helpful in analyzing & making right choice of
investments to the investors.

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TABLE: 7
RMF has a greater technological advancements when compared to other AMC’

PARTICULARS NUMBER OF RESPONDENTS PERCENTAGE

Yes 25 83
No 0 0
To some extent 5 17
No knowledge 0 0
Total 30 100

ANALYSIS
Yes (83%) RMF has a greater technological advancements when compared to other AMC’s, and
17% feel To some extent.

GOOD

PERCENTAGE
VERY GOOD
NUMBER OF
RESPONDENTS

EXCELLENT

0 10 20 30 40 50

INTERPRETATION

Majority of the respondents tell Yes that RMF has a greater technological advancements when
compared to its peers in MF industry.

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TABLE: 8
Rating the equity performance of Reliance Mutual Fund in long run

PARTICULARS NUMBER OF RESPONDENTS PERCENTAGE

Excellent 13 43
Very Good 12 40
Good 5 17
Fair 0 0
Poor 0 0
Total 30 100

ANALYSIS
According to the rating, 43% of the respondents rate the equity performance of RMF in long run
is Excellent, 40% rate it Very Good, and 17% rate it as Good.

POOR

FAIR

PERCENTAGE
GOOD
NUMBER OF
RESPONDENTS
VERY GOOD

EXCELLENT

0 10 20 30 40 50

INTERPRETATION
43% of the respondents rate the equity performance of RMF in long run is Excellent

42
CONCLUSION

The research shows that Equity Funds are performing well, but the investments from investors are
less in equity funds, because of unawareness about mutual funds.

Therefore company has to take some steps to make aware people of Mutual Funds, through
advertisements in Newspaper, Magazine, Commercial advertisement, distributing leaflets,
Television, Radios. And I came for following conclusion :

 All the workers and staff work together to increase the organization’s profit and thereby to
increase its growth, each department works without any failures.
 Very less people knows about the service of Reliance.
 Managing complex business processes is one of the important management challenges of
this new century. Moreover, globalization and technological advancement are driving
changes in all sectors. In reliance organisational structure and management style are
playing an important role in Information Technology Management.
 Structure is influenced by the external environment in which the business operates as well
as its culture and the nature of the work and activities it undertakes.
 The structure can have both a positive and negative impact on a business.
 Having the right structure allows a business to respond and adapt to changes in the market
quickly.
 The company needs to adopt new strategy’s to have an efficient departments
. The organization is following highly appreciable managerial practices, which made it
possible to the organizational goals more easily. The HR policies set by the company are
remarkable. Satisfied workers are considered to be the assets of the organization and they
are motivated enough to perform well. The infrastructure facilities are very much
impressive. There is a high rate of capacity utilization. Quality management system is also
remarkable.

 By this study, I was able to understand how the various functional departments of an
organization co-ordinate and work towards achieving the organizational goals in an
effective and efficient manner. I am sure that my study at Reliance capital asset
management was a success and hope that it will be an asset for my future.

43
 The awareness level of investors is low who are interested in dealing in mutual fund:

 Most of investors are totally unaware about this investment.

 Very less people knows about the service of Reliance.
 Past image of mutual fund is not good.
 Reliance can promote the investors by advertising, hording, and by interviews to invest in
this fund.
 Most of the investors want to invest in public co.’s fund just because of safety purpose.
 Most of the investors want to safer side in investment.
 Most of the investors want to invest in debt funds because those are the risk free funds; it
gives the interest on investment.

 Most of the investors don’t know about the mutual funds so they want advisory services
from reliance which could provide them whole information about the market situation of
mutual fund.

FINDINGS AND SUGGESTION

In Equity Schemes we have taken Reliance Vison Fund and Reliance growth Fund . Both
schemes are open ended but Reliance Growth fund is more valuable for Reliance Mutual Fund
than reliance vision Fund.

In Dedt scheme we have taken Reliance money Manager Fund and Reliance Liquidty Fund .In
it boths schemes are open ended but reliance money manager is more beneficial for reliance mutual
fund .

In sector specific scheme we have taken Reliance media and entertainment fund and Reliance
Pharma fund scheme both is more efficient for Reliance Mutual Fund.

Above all the schemes of Reliance Mutual Fund Debt schemes are best schemes for Mutual Fund
.There is a Good investment plan and saving scheme in reliance Mutual Fund

44
BIBLIOGRAPHY

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

LEARNING EXPERIENCE

Before joining for internship we felt that making investment in mutual funds was difficult task .but
later joining to reliance mutual fund as an interns,
1. We got a clear idea how to invest in mutual fund
2. What is the cut off time for liquid funds and equity funds
3. How to fill an application form without a single mistakes because if even a single mistake
or overwriting is found the application will be rejected by RMF in such a case the units
will not be allotted to the investors on that particular NAV.
4. what is kyc- know your client, when a new investor want to invest in mutual fund then
KYC is mandatory before investing in any mutual fund
5. what is “KYC’details change form”
in case of Individuals, missing/not available details are as follows:
• Father’s/Spouse Name,
• Marital Status,
• Nationality,
• Gross Annual Income or Net worth as on recent date
6. SIP means systematic investment plan which allows the investors to invest a fixed amount
on a particular scheme on regular basis Your money is auto-debited from your bank
account and invested into a specific mutual fund scheme. You are allocated certain number
of units based on the ongoing market rate (called NAV or net asset value) for the day.
7. What is the difference between equity fund schemes and liquid fund schemes what is the
risk and return involved in it
45
8. Our guide – Mr. Abhishekh Malia [ Regional Manager ] who use to say that practical
knowledge is very important so he use to make us travel along with him to banks , clients
,the way he use to communicate, the way he use to identify the potential clients, the way
he use make the clients to understand about the benefits of newly launched schemes and
make them to invest in reliance mutual fund .
This gave us a clear idea how reliance mutual fund is successful in attracting the clients to
invest in reliance mutual fund and it also improved our communication skills a lot .

We are really thank full to all the employees ,all the top level managers especially
regional manager and relationship manager [Nagpur Branch] for giving us a chance
to work as an intern for 45 days and who has helped us, guided us a lot in successfully
completion of the project .

46
QUESTIONNAIRE

PERSONAL DETAILS:

Name : Priyanka Thakare and Renuka Mane

College: Dept. of Business Administration and Management

1. As a financial planner is Reliance mutual fund product falls under your product bucket
A. Yes
B. No

2. How did you come to know about Reliance mutual Fund?

a) Friends /Relatives b) News papers / magazines

c) Brokers/Agents d) Financial consultants.

Other_________________________

3. Which Schemes of Reliance Mutual fund would you prefer the most?

Equity Schemes Debt Scheme

4. Which Equity Scheme you prefer the most in Reliance Mutual Fund?

(Rank them from 1 to 5, being the most preferred and 5 being the least)

Reliance Growth [ ]

Reliance Vision Fund [ ]

Reliance Equity Opportunity Fund [ ]

Reliance Tax Saver (ELSS) Fund [ ]

Reliance Equity Fund [ ]

47
5. What factors do you consider while investing in mutual fund? (Rank them from 1 to 6. No1
for preferred and No 6 for least preferred)

a) Safety b) Rate of return

c) Liquidity d) Tax benefit

e) Flexibility f) Brand Name

6. How would you rate Reliance mutual fund when compared to the other mutual Fund? (Rank
them from 1 to 5, 1 being the Highest & 5 being the lowest).

Reliance [ ]

HDFC [ ]

Franklin Templeton [ ]

UTI [ ]

ICICI [ ]

7. How do you rate the performance of reliance mutual funds?

a. Excellent
b. Very good
c. Good
d. Moderate

8. How do you rate the services provided by reliance mutual funds

a. Very Satisfied
b. Satisfied
c. Neither Satisfied nor dissatisfied
d. Dissatisfied
e. Very Dissatisfied

48
9. While taking investment decision what matters a lot?
a. AMC
b. Performance
c. Consistency
d. Service
e. Fund Manager

10. Does RMF has a sizable impact as compared to its peers in MF industry?

a. Yes
b. No

11. Is RMF is very helpful in analyzing and in making right choice of investment?

a. Yes
b. No
c. To some extent

12. Do you think that RMF has a greater technological advancements when compared to other
AMC’s?

a. Yes
b. No
c. To some extent
d. No knowledge

13. How do you rate equity performance of reliance mutual fund in long run?

a. Excellent
b. Very Good
c. Good
d. Fair
e. poor

49
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