A PROJECT REPORT ON

“ COMPARATIVE STUDY OF VARIOUS SCHEMES

OF RELIANCE MUTUAL FUND”.

Submitted to:-
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur.
In partial fulfillment of
Degree of Master of Business Administration.
For the academic year 2007-2008.
Submitted by:-
MISS. DIPALI GAIDHANI
B.Sc (pcm).
M.B.A fourth semester student.
Researcher.
Enroll No: RTMNU/A4/ 73700.

Under the guidance of:-

Prof. HEMANT BABHULKAR

B.com, MBA.
Submitted through:-

SHRI SHIVAJI EDUCATION SOCIETY AMRAVATI’S,

DR. PANJABRAO DESHMUKH INSTITUTE OF

MANAGEMENT TECHNOLOGY & RESEARCH,
DHANWATE NATIONAL COLLEGE, NAGPUR.
 SHRI SHIVAJI EDUCATION SOCIETY AMRAVATI’S
DR.PANJABRAO DESHMUKH INSTITUTE OF MANAGEMENT TECHNOLOGY & RESEARCH
Dhanwate National College, Congress Nagar, Nagpur-440 012 Phone: 91-712-22430464, 22445356
Fax: 0712-2454193 e-mail: pdimtr@rediffmail.com / Website :http:\\www.pdimtr.com

CERTIFICATE
I hereby certify that this project Report entitled “ COMPARATIVE STUDY OF
VARIOUS SCHEMES OF RELIANCE MUTUAL FUND”.

submitted by MISS. DIPALI GAIDHANI

to Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur in the
faculty of commerce is bonafide and original research work carried out
under my guidance and supervision. It is a piece of research of
sufficiently high standard to warrant its submission to the University for
the Award of the said degree.

No part of the thesis has been submitted for any Degree or Diploma
or published in any other form.

The assistance and help rendered to the researcher during the course
of his investigation in the form of basic source material and information
have been duly acknowledged.

Dr. B.B. Taywade Prof. (Mr.) HEMANT BABHULKAR

Director Supervisor
Place-Nagpur
Date-

APPROVED BY AICTE, NEW DELHI  AFFILIATED TO NAGPUR UNIVERSITY

FOUNDER PRESIDENT : Late Dr.Panjabrao Deshmukh. PRESIDENT : Hon. Shri Adv.Arunkumar B.
Shelke.
DIRECTOR : Dr.B.B.Taywade. CO-ORDINATOR : Dr.M.A.Burghate.. Placement In charge: Mrs.K.D.Patil
 DECLARATION

I, DIPALI GAIDHANI, here by declare that project Entitled “comparative study of

various schemes of Reliance mutual fund distributed by Anagram stock broking

Limited.” In the outcome of my research work based on personal study and has not been

submitted previously for award of any Degree/Diploma to this University or any other

University.

The sources of material and data used in this study have been acknowledged.

Nagpur DIPALI GAIDHANI

Researcher
 ACKNOWLEDGEMENT
To get the blossomed tree, seeds need to be of utmost quality and environment
as well. Thoughts are converted into ideas, ideas into plans, plans into actions and actions
into the work. To reach the heightened goal successfully, systematic and consistent work
under a guide is required. It is the guide who inspires and encourages completing the
work in stipulated time. I would like to express my gratitude to the Director of
PDIMTR, Nagpur, Dr.B.B Taywade and Co-ordinator Dr. Mukul Burghate, for
giving me opportunity to do the project in order to enhance my knowledge, skills and
abilities.
I owe my sincere thanks to my research guide and mentor Prof. HEMANT
BABHULKAR for his valuable guidance. I find myself lacking in expression to extend
my profound sense of respect to Mr. Babhulkar, with out his guidance it would have been
mission impossible for me to move ahead with this research : “ COMPARATIVE
STUDY OF VARIOUS SCHEMES OF RELIANCE MUTUAL FUND”.

I would be failing in my duty if I don’t express my sincere thanks to the faculty

members and requisite personnel of my institute for providing me the concerned books
and guidance and assistance.

DIPALI GAIDHANI
Researcher
 EXECUTIVE SUMMARY
The project is mainly related to the financial services sector. With the starting
of era of liberalization and globalization of the Indian economy, a tremendous
Competition among financial services has started. The company & financial institution
are always on their toes to develop and issue something innovative keeping in
considerations the choice of the people. This is the reason that every now and then new
schemes of mutual funds are available in the market to fit the requirement of various
segment of the market. This entitles for any institution of company, involved in the
capital services, to have through analysis if current trends, orientation and government
norms together with development of skills to enter competition and succeed in any
segment if the market.
The project “comparative study of various schemes of Reliance mutual finds” is
an empirical study based on the secondary data as available. The major emphasis of
research design is the distribution of ideas and purpose of my study is to gain insights of
various schemes of mutual funds, which are managed by financial institution and
companies.
The main of this project is to the study and compare various schemes of mutual
finds and to find out the effect of benefits & current NAV & returns on client’s
purchasing decision.

The project is conducted from the point of view of clients in other words the
focus is to highlight the level of satisfaction & security of returns of unit holders, like – “
WHY A PARTICILAR CLINT BUYS A PARTICILAR SCHEMES OF MUTUAL
FIND OF A COMPANY”? These are some key questions & answer to these questions is
the target of the project.
 CHAPTERISATION

CHAPTER CONTENTS PAGE NO.

NO.

INTRODUCTION OF MUTUAL
1 FUND 6-23

2 OBJECTIVES OF STUDY 24-25

3 RESEARCH METHODOLOGY 26-28

4 INTRODUCTION OF ANAGRAM 29-30

STOCKBROKING LTD

5 INTRODUCTION OF RELIANCE 31-35

MUTUAL FUND

6 SCHEME FOR STUDY 36-38

7 COMPARATIVE STUDY 39-49

8 CONCLUSION AND SUGGESTION 50-52

53
BIBLIOGRAPHY
9
 CHAPTER 1

INTRODUCTION

INTRODUCTION
 INTRODUCTION OF MUTUAL FUND

• INTRODUCTION :

Indian financial institutions have played a dominant role in asset formation and
intermediation, and contributed substantially in macroeconomic development. In this
process of development Mutual Funds have emerged as strong financial intermediary and
playing important role in bringing stability to financial system and efficiency to asset
allocation.
Mutual Funds now represent perhaps the most appropriate investment avenues for
the most of the investors, as financial market became more and more sophisticated and
complex. They have opened new vistas to investors and imparted much needed liquidity
to the system. In the process they have challenged, hitherto, dominant role of commercial
banks in financial markets and national economy.

What is mutual fund?

A Mutual Fund is a trust that pools the savings of a number of investors – its
shareholders called as unit holders – who share a common financial goal. The money thus
collected is then invested in a variety of different securities. Investments may be in
stocks, bonds, money market securities or some combination of these. Those securities
are professionally managed on behalf of the unit holders, and each investor holds a pro
rata share of the portfolio – entitled to any profits when the securities are sold, but subject
to any losses in value as well. In brief mutual fund is a vehicle through which one can
invest in stocks & bonds.
 • Managed by an Asset Management Company (AMC) :
The company that puts together a mutual fund is called an AMC. An AMC may
have several mutual fund schemes with similar or varied investment objectives. The
AMC hires a professional money manager, who buys and sells securities in line with the
fund's stated objective.

“All AMC’s Regulated by SEBI, Funds Governed by Board of Directors”

SEBI is the regulatory authority of MFs. SEBI has the following broad
guidelines pertaining to mutual funds:

 MFs should be formed as a Trust under Indian Trust Act and should be operated
by Asset Management Companies (AMCs).
 MFs need to set up a Board of Trustees and Trustee Companies. They should also
have their Board of Directors.
 The net worth of the AMCs should be at least Rs.5 crore.
 AMCs and Trustees of a MF should be two separate and distinct legal entities.
 The AMC or any of its companies cannot act as managers for any other fund.
 AMCs have to get the approval of SEBI for its Articles and Memorandum of
Association.
 All MF schemes should be registered with SEBI.

MFs should distribute minimum of 90% of their profits among the investors. In
addition, every mutual fund has a board of directors that is supposed to represent the
shareholders' interests, rather than the AMC’s
 HISTORY OF MUTUAL FUND

In India, the first Mutual funds started in the shape of the Unit Trust of India in
1964, which was set up under the UTI ACT, 1963 to operate both as a financial
institution & an investment trust. It was only in the second half of eighties, public sector
banks were permitted to set up mutual funds, with SBI & Canara bank taking lead.
Mutual Funds in India (1964 - 2000)

“UTI commenced its operations from July 1964 “with a view to encouraging
savings and investment and participation in the income, profits and gains accruing to the
Corporation from the acquisition, holding, management and disposal of securities."
Different provisions of the UTI Act laid down the structure of management, scope of
business, powers and functions of the Trust as well as accounting, disclosures and
regulatory requirements for the Trust.

In the year 1992, Securities & Exchange Board of India (SEBI) act was passed.
The objectives of SEBI are to protect the interest of investment in securities & to promote
the development of & to regulate the securities market.
 IMPORTANT PHASES OF THE HISTORY OFMUTUAL
FUNDS

• 1963-1987: The unit trust of India

• 1963-1993: Public sector banks & financial institutions.
• 1993-1996: Opened to private sector players.
• 1996-1999: Implementation of the new SEBI regulations.
• 1999-2004: Period of rapid growth.

CONCEPT OF MUTUAL FUND

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 appreciations 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

 Structure of Indian Mutual
Funds

Establishes Mutual Fund as

Sponsor a Trust
Appointed by Board of Trustees

Company Register MF with SEBI

Hold Unit holders’ Fund in
MF
Mutual
Managed by Board funds
of Trustees Ensure Compliances with

SEBI & enters into

agreement with SEBI

Asset Manages Fund as per

Management
Company SEBI Guidelines & AMC

Provide Necessary

Custodian Custodian Services

Banker Provide Banking Services

Register Provide register Services

Transfer Agent & Act as Transfer Agent
Above figure gives exact idea about structure of Indian Mutual Funds. A Mutual Fund
comprises four separate entities, namely

 Sponsor Company,
 Mutual Fund Trust,
 Asset Management Company (AMC) and
 Custodian.

There are of course independent entities that assist in business like Banks,
Registrar and Transfer Agents. Now let’s discuss in brief about these main four entities,
their functions and their obligations.

The Sponsor for Mutual Fund can be any person, who acting alone or in
combination with another body establishes mutual fund and gets it registered with SEBI.
Some important point about sponsor:

• He is required to contribute at least 40% or 10 crore of asset management

company.
• He must have sound track record and general reputation of fairness and integrity
in all his business.
• As per SEBI regulations, the mutual fund is to be formed by the sponsor and
register with SEBI.
 The Board of Trustees manages the mutual funds and the sponsor executes
trust deeds in favor of trustees. The mutual fund raises money through sale of unit under
one or more schemes for investing in securities accordance with SEBI guidelines. It is the
job of the trustees to see that the schemes floated and managed by AMC, are accordance
with trust deeds and SEBI guidelines. Some important points about Trustees:

• At least half of the trustees should be independent person.

• The AMC or its employees cannot act as trustee.
• No person who is appointed as trustee of one mutual fund can appoint trustee of
other mutual fund unless he is independent trustee and prior permission is obtain
from mutual fund in which he is a trustee.
• The trustee appoint custodian and supervise their activity.
• All schemes launched by AMC needs to be approved by the trustees and copies of
offer document are to be filed with SEBI.

As per SEBI guidelines Asset Management Company (AMC) is appointed by

the trustees to float the schemes for mutual fund and manage the fund raised by selling
units under a scheme. The AMC must act as per SEBI guidelines, the trust deed and the
management agreement between trustee and AMC. Some important points about the
AMC:
 • The AMC should be register with SEBI
• Net worth of AMC should be in form of cash and the entire asset should be held
in the name of AMC.
• AMC cannot give or guarantee loans.
• AMC is prohibited from acquiring any asset (out of schemes property) that would
involve assumption of unlimited liability.
• It is required to disclose the schemes particulars and the base of NAV
calculations.

The SEBI regulations provide for the appointment of the Custodian by the trustees
of the mutual fund for carrying on activity of safe keeping of the securities or
participating in any clearing system on behalf of mutual fund. Some important point
about the Custodian:

• Custodian must have sound track record and adequate relevant experience.
• At time of appointment, the Custodian should not be associated with the AMC or
act as sponsor or trustee to any mutual fund.
TYPES OF MUTUAL FUND

Flow chart of types of Mutual Fund

CLASSIFICATION ACCORDING TO INVESTMENT
OBJECTIVE:
Objectives:
Mutual funds have specific investment objectives such as growth of capital,
safety of principal, current income or tax-exempt income. In general mutual funds fall
into three general categories:
 Equity Funds invest in shares or equity of companies.
 Fixed-Income funds invest in government or corporate securities that offer fixed
rates of return.
 Balanced Funds invest in a combination of both stocks and bonds.

Schemes according to maturity period

A Mutual fund scheme can be classified into open-ended scheme or close
ended scheme depending on its maturity period.

Open-ended fund/ scheme

An open ended fund or scheme is one that is available for subscription and
repurchase on a continuous basis. These schemes do not have a fixed maturity period.
Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices
which are declared on a daily basis. The key feature of open-ended schemes is liquidity.

Close-ended fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7

Years. The fund is open for subscription only during a specific period at the time of
launch of the scheme. Investors can invest in the scheme at the time of the initial public
issue and thereafter they can buy or sell the units of the scheme on the stock exchanges
where the units are listed. In order to provide an exit route to the investors, some close
ended funds give an option of selling back to units to the mutual fund through periodic
repurchase at NAV related prices SEBI regulations stipulated that at least one of the two
exit route is provided to the investor i.e. either repurchase facility or through listing on
stock exchanges. These mutual funds scheme dis close NAV generally on weekly basis.

Scheme according to Investment Objective

A Scheme can also be classified as growth scheme, income scheme, or

balanced scheme considering its investment objective. Such scheme may be open-ended
or close ended scheme as describe earlier. Such scheme may be classified mainly as
fallows:-

Growth/ Equity Oriented Scheme

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 a different
options to the investors like dividend options, capital appreciation, etc & 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 the later date. Growth schemes are good for investors having a long term
outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme

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 NAV of such funds likely to increase in the short run and
voice versa. However, long term investor may not bother about these fluctuations.

Balanced fund

The aim of balanced funds is to provide both growth and regular income
as such scheme invest both in equities and fixed income securities in the proportion
indicated in there offer documents. These are appropriate for investor looking for
moderate growth. They generally invest 40-60% in equity and debt instruments. These
funds are also affected because of fluctuations in the share prices in the stock markets.
However, NAV of such funds are likely to be less volatile compared to pure equity funds.

Money Market or Liquid Fund

These funds are also income funds and their aim is to provide easy
liquidity, preservation of capital and moderate income. These schemes invest exclusively
in safer short term instrument such as treasury bills, certificate of deposit, commercial
paper and inter-bank call money, government securities, etc. returns on this scheme
fluctuate much less compared to other funds. These funds are appropriate for compared to
other funds. These funds are appropriate for corporate and individual investors as a
means to park their surplus funds for short periods.

Gilt Fund

These funds invest exclusively in government securities. Government

securities have no default risk. NAVs of this scheme also fluctuate due to change in
interest rates and other economic factors as is the case income or debt oriented schemes.

Index Fund

Index fund replicate the portfolio of a particular index such as the BSC
sensitive index, S&P NSE 50 index (Nifty) etc. These schemes invest in the securities in
the same weightage comprising of an index. NAVs such schemes would rise or false
accordance with the rise or fall in the index, through not exactly by the same percentage
due to some factors known as “tracking error” in technical terms. Necessary disclosures
in this regard are made in the offer document of the mutual fund scheme. There are also
exchange traded index funds launched by the mutual funds which are traded on the stock
exchange.
A summary is presented in the table below of the various funds and
their investment objectives.

TIME RISK
HORIZON PROFILE TYPICAL INVESTMENT
PATTERN
SCHEME
TYPE
Objective Open Close Equity Debt Money
(%) (%) Market
ended ended Inst./Others
(%)
Money Yes No Short- Low 0 0-20 80-100
Market Term
Income Yes Yes Medium Low to 0 80- 0-20
-Long Medium 100
Term
Growth Yes Yes Long High 80-100 0-20 0-20
Term
Balanced Yes Yes Long term Medium 0-60 0-40 0-20
to high
Tax Yes Yes Long term High 80-100 80- 0-20
Saving 100
 Benefits of Mutual Fund
Following are some benefits in investing in Mutual Funds:

Professional management:
Mutual funds hire full-time, high-level investment professionals. Funds can afford to
do so as they manage large pools of money. The managers have real-time access to
crucial market information and are able to execute trades on the largest and most cost-
effective scale.

Diversification:
Mutual funds invest in a broad range of securities. This limits investment risk by
reducing the effect of a possible decline in the value of any one security. Mutual fund
unit-holders can benefit from diversification techniques usually available only to
investors wealthy enough to buy significant positions in a wide variety of securities.

Low Cost:
A mutual fund let's you participate in a diversified portfolio for as little as Rs.5,000/-,
and sometimes less. And with a no-load fund, you pay little or no sales charges to own
them.

Liquidity:
In open-ended schemes, you can get your money back promptly at net asset value
(NAV) related prices from the mutual fund itself. With close-ended schemes you can sell
your unit at stock exchange at prevailing market price or avail of the facility of direct
purchase at NAV related prices which close-ended schemes offers periodically.
 Transparency:
You get regular information on the value of your investment in addition to disclosure
on the specific investments made by the mutual fund scheme.

Choice of Schemes:
Mutual Funds offer a family of schemes to suit your varying needs over lifetime.

Well regulated:
All mutual funds are register with SEBI and they functions within the provisions of
strict regulation design to protect interest of investor. The operations of Mutual funds are
regularly monitored by SEBI.

Return Potential:
Over medium to long-term, Mutual Funds have the potential to provide higher returns
as they invest in a diversified basket of securities.
 Transparency
 Flexibility
 Choice of schemes
 Tax benefits
 Well regulated
 CHAPTER 2

OBJECTIVES OF
STUDY

INTRODUCTION
 OBJECTIVES OF PROJECT WORK

OBJECTIVES

 The main aim of project was to study & compare different

schemes of Reliance Mutual Fund.
 To compare various scheme of Reliance mutual funds on the basis
of their objectives, NAV, Annual returns, risk and portfolio etc.
 To know various features and benefits of the schemes of mutual
funds.
 To study the returns of mutual fund from investors point of view.
 To suggest the best fund for investment.
 CHAPTER 3

RESEARCH
METHODOLOGY

INTRODUCTION
 RESEARCH METHODOLOGY

“Research Methodology is a human activity based on intellectual

investigation and is aimed at discovering, interpreting, and revising human
knowledge on different aspects of the world.”

1. Research Design:-
A research design indicates a primary interpretation of design
research is that it is concerned with undertaking research into the design process.
Secondary interpretations would refer to undertaking research within the process of
design. . It provides guidelines for the researcher to know whether he is on the right track
and is he moving in the right direction. The research design specifies the methods &
procedures for collecting and analyzing the needed information. It is a frame work for
research plan of action.

Data collection:-
The whole data collected from secondary sources only.
The method which I used was secondary data. Under this method I
have collected external secondary data from the journals published from companies.

Secondary Data
The secondary data collected through following basis:-
• Company Records.
• Fact sheets.
• Journals.
• Magazines.
Sample
Sample size:-
• Reliance diversified power sector fund.
• Reliance Index fund Nifty plan.
• Reliance Banking fund.
• Reliance media and entertainment fund.
• Reliance NRI equity fund.

The Sample used for the research is randomly selected.

Limitation of project :-

Limitation of the project title, “comparative study of various schemes of

Reliance mutual fund distributed by Anagram stock broking Ltd.” The study has been
restricted with reference to the following basis of the various schemes only.
• Objective of schemes.
• Portfolios of schemes.
• NAV of schemes.
• Annual returns of schemes.
 CHAPTER 4

INTRODUCTION OF

ANAGRAM
STOCKBROKING
LTD

INTRODUCTION
 Introduction of Anagram Stock broking limited

Anagram is a Part of the Lalbhai Group; Anagram is a Member of the NSE, BSE,
MCX, NCDEX, NMCE and ASE, and a Depository Participant with NSDL. It is, today,
one of India’s leading Stock broking houses. It offers a wide range of services for the
discerning equity investor, in addition to online account access and real time trading.

• Over 90000 satisfied customers

• Over 140 branches across India.

Benefits:

• Nationally recognized brand.

• Proven business model.
• Online back office support.
• Internet trading for clients.
• Intraday trading and research based investment calls from a team of experts.

The community of Moneypore was founded by Anagram Stock broking, a

firm which is part of the Rs. 2,000 crores Lalbhai Group. Anagram is a member of the
National Stock Exchange (registration number INB--230597630). Ever since its
foundation in 1993, Anagram Securities has always focused on the needs of the retail
client. Last year, billings crossed Rs.17,000 crore with around 5,000 people making their
trades through Anagram.
 The firm has its roots in Western India especially Gujarat where it is the biggest
player. But it has expanded considerably.

CHAPTER 5

INTRODUCTION
OF
RELIANCE
MUTUAL
FUND
 Introduction of Reliance mutual fund

Reliance Mutual Fund (RMF), a part of the Reliance Anil Dhirubhai

Ambani Group, is India’s leading Mutual Fund, with Assets under management of Rs
77,765 Crores (AUM as on 30th November 2007), and an investor base of over 4.2
million . Reliance Mutual Fund is one of the fastest growing mutual funds in the country.

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.

The main objectives of the Trust are :

• To carry on the activity of a Mutual Fund as may be permitted at law and formulate
and devise various collective Schemes of savings and investments for people in India
and abroad and also ensure liquidity of investments for the Unit holders.
• To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on
their savings.
• To take such steps as may be necessary from time to time to realise the effects
without any limitation.

About Reliance Mutual Fund

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 to increase value of investors. Reliance Mutual Fund schemes are managed by
Reliance Capital Asset Management Ltd, a wholly owned subsidiary of Reliance Capital
Ltd.

Reliance Capital limited is a financial services a company. The Company has

interests in asset management and mutual funds, life and general insurance, private equity
and investments, stock broking and other activities in financial services.

In April 2007, the company launched Reliance Money, an online financial

services and solutions portal, which provides its customer with investment and trading
access to equities and equities options and commodities futures, mutual funds, initial
public offerings (IPOs), life and general insurance products and credit cards. It operates
in four Business segments: finance and investment, asset management, general insurance
and other. Other includes foreign exchange, money transfer, pharmaceuticals, healthcare
and logistics.
 Reliance Mutual Fund (RMF) is the biggest Mutual Fund house in India. It has
been sponsored by Reliance Capital Ltd (RCL). RCL has been promoted by Reliance
Industries Ltd., one of India's largest private sector enterprises. Reliance Capital Asset
Management Ltd manages the investments of Reliance Mutual Fund.

Reliance mutual funds have now gone ahead of Unit Trust of India (UTI) to
become India's largest mutual fund by AUM (assets under management).
According to AFMI (Association of Mutual Funds of India) Reliance's AUM was Rs
39000 crore in January compared to Rs 37500 crore of UTI.

Prudential ICICI MF is now in the third position with AUM of 34750 crore and
HDFC MF is at fourth position with AUM of 31500 crore. Total AUM of all mutual
funds in India (except Taurus and Escorts) is now at Rs 323500 crore.

Reliance Mutual Fund reported a healthy growth of Rs 16,354 crore in assets

under management (AUM) in February, taking the total industry-wise AUM to Rs
5,65,459 crore.
Asset under management of Reliance Capital Ltd is 93,532 crores as on 29th Feb 2008.

Reliance Capital Limited :

"Reliance Mutual Fund schemes are managed by Reliance Capital Asset

Management Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of
the paid-up capital of RCAM, the balance paid up capital being held by minority
shareholders.", the sponsor. Reliance Mutual Fund (RMF) has been sponsored by
Reliance Capital Ltd (RCL). The promoter of RCL is AAA Enterprises Private Limited.
Reliance Capital Limited is a Non Banking Finance Company.

Reliance Capital Limited is one of the India’s leading and fastest growing
financial services companies, and ranks among the top three private sector financial
services and banking companies, in terms of networth.

Reliance Capital has interests in asset management and mutual funds, life and
non-life insurance, private equity and proprietary investments, stock broking and other
activities in the financial services sector.

SCHEMES OF RELIANCE MUTUAL FUND

• GROWTH SCHEME

Reliance Natural Resources Fund

Reliance Equity Fund
Reliance Vision Fund
Reliance Growth Fund
Reliance NRI Equity Fund

• SECTOR SPECIFIC SCHEMES

Reliance Banking Fund

Reliance Diversified Power Sector Fund
Reliance Media & Entertainment Fund

• DEBT\INCOME SCHEMES

Reliance Income Fund

Reliance Monthly Income Plan
Reliance Liquidity Fund
 CHAPTER 6

SCHEME OF
STUDY

INTRODUCTION
 TEXT OF STATISTICAL REPRESENTATION

The main aim of the project is to conduct comparative study of

mutual fund I have selected specific schemes of mutual fund. i.e Growth
scheme.

• Reliance diversified power sector fund.

• Reliance Index fund Nifty plan.
• Reliance Banking fund.
• Reliance media and entertainment fund.
• Reliance NRI equity fund.
 Scheme of Study

FUND Reliance Reliance Reliance Reliance Reliance

NAME diversifie Index Banking media & NRI
d power Fund fund entertainment Equity
sector Nifty (Growth) fund Fund
fund plan (Growth) (Growth)
(Growth) (Growth)
Fund Type Open Ended Open Open Open Ended Open
Ended Ended Ended
Investment Growth Growth Growth Growth Growth
Inception 10 May, 8 Feb, 28 May, 7 Oct, 16 Nov,
Date 2004 2005 2003 2004 2004
Minimum 5000 5000 5000 5000 5000
Investment
Benchmark India Power S&P CNX S&P CNX S&P CNX media BSE 200
Index Nifty Bank & entertainment Index
Index fund Index
Fund Sunil Ashwani Sunil Sailesh Raj Bhan Omprakash
Manager Singhania Kumar Singhania Kuckien
 CHAPTER 7

COMPARATIVE
STUDY

INTRODUCTION
 Comparative Study
Comparative study of Mutual Fund Schemes.

The parameters are selected on the following grounds:-

• Objective of schemes.

• Portfolio of schemes.

• NAV of schemes.

• Absolute Returns of schemes.

 1) Comparison of objectives of schemes.

Scheme 1 Scheme 2 Scheme 3 Scheme 4 Scheme 5

To seek to The objective of The primary To generate To generate
continuous Nifty Plan is to investment continuous optimal
Returns by replicate the objective of Returns by Returns by
investing in composition of the Scheme investing in investing in
equity & the Nifty, with a is to seek to equity & equity equity &
Objectives equity view to generate related or equity related
related or endeavor to continuous fixed-income instruments
Of fixed- generate returns, returns by securities of primarily
income which could actively media & drawn from
securities of approximately investing in entertainment the
Schemes power & be the same as equity / & other companies in
other that of Nifty. equity associated the BSE 200
associated related or companies. Index.
companies. fixed
income
securities of
banks.
 2) Comparison of schemes by Portfolios

Duration Portfolios Scheme Scheme Scheme Scheme Scheme

1 2 3 4 5
Equity 68.14 81.71 97.54 84.81 97.39
31 Cash & 31.86 12.29 2.46 15.19 2.61
Dec,2007 other
Receivable
s
Equity 74.83 94.92 97.42 76.46 97.60
31 Cash & 25.17 5.08 2.58 23.54 2.40
Jan,2008 other
Receivable
s
Equity 70.98 82.48 93.83 92.49 95.09
29 Cash & 29.02 17.52 6.17 7.51 4.91
Feb,2008 other
Receivable
s
3) Comparison of NAV of schemes

Duration Scheme Scheme Scheme Scheme Scheme

1 2 3 4 5

31 14.3 9.81 25.3 10.3 11.33

Mar,2005 0 4 4
NAV
31 30.0 14.3 31.5 18.9 18.78
Mar,2006 7 6 4 7

31 81.8 19.0 22.7 41.2 38.45

Mar,2007 3 1 3 1
 NAV COMPARISON

100
80
60
40
20
0
Scheme Scheme Scheme
1 3 5
mutual fund schemes

31 Mar,2005
Comparison 31 1Mar,2006
of NAV of last year on 2007 31 Mar,2007
Sr. No Schemes NAV Remarks
1 Reliance
diversified power 81.83
sector fund
I
(Growth)
2 Reliance Index
Fund
Nifty plan
19.01 V
(Growth)

3 Reliance Banking
fund 22.73
(Growth)
IV
4 Reliance media &
entertainment 41.21
fund (Growth)
II
5 Reliance NRI
Equity
 Fund (Growth) 38.45
III

From the above table we find that there is difference in NAV of each Mutual
fund. NAV of Reliance diversified power sector fund is Rs.81.83 but other scheme of
NAV is low. This difference plays important role while investors choose a scheme. From
above table it is clear that Reliance diversified power sector fund (growth) has better
chances of getting selected.

4) Comparison of Absolute Returns ( IN % )

of Reliance mutual fund

Duration Scheme Scheme Scheme Scheme Scheme

1 2 3 4 5
31
Mar,2005 81.4 28.2 29.2 42.5 54.8
Returns 31
Mar,2006 58.8 24.8 18.3 43.3 49.6
31
Mar,2007 122.6 41.8 75.5 79.7 53.5
 COMPARISON OF SCHEMES BY ABSOLUTE RETURNS

140
120
100
IN %
80
60
40
20
0
SchemeSchemeSchemeSchemeScheme
1 2 3 4 5
MUTUAL FUND SCHEMES

31 Mar,2005 31 Mar,2006 31 Mar,2007

The above graph shows the comparison of Absolute returns.

Comparison of Absolute Return ( IN % )

of last 1 year on 2007

Sr. No. Scheme Absolute Remark

Returns s
1 Reliance
diversified
power sector
122.6 I
fund
(Growth)
2 Reliance Index
Fund
Nifty plan
41.8 V
(Growth)
3 Reliance
Banking
fund
75.5 III
 (Growth)
4 Reliance media
&
entertainment
79.7 II
fund (Growth)
5 Reliance NRI
Equity
Fund (Growth)
53.5 IV

Above mentioned table shows the average Absolute returns of each Mutual
fund scheme. This factor is most important role while selecting the mutual fund schemes
for investor point of view.
Table shows that Reliance diversified power sector fund (growth) has highest
average absolute returns i.e 122.6% and then Reliance media & entertainment fund
(Growth) and Reliance Banking fund(Growth).
The annual Returns of Reliance diversified power sector fund (growth) comes
to be 84.27 and after that ICICI pru infrastructure fund comes to be 54.91.

5) Comparison of Schemes by Expense ratio.

Expense Reliance Reliance Reliance Reliance Reliance

Ratio power Index Banking media NRI
equity
1.64% 1.72% 2.10% 2.13% 2.40%
 Com parison of schem es by expense ratio

2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
scheme1 scheme2 scheme3 scheme4 scheme5
m utual fund schemes

A graph shows the comparison of expense ratio between five schemes.

Feb
Above mentioned graph shows the expense ratio of each scheme of mutual fund.
This factor plays very important role while selecting the mutual scheme for investor point
of view. Because if the expense ratio should less then profit will increases and due to this
returns to unit holders also increases. As we seen that Reliance diversified power sector
fund has 1.64% expense ratio than other funds.

6) Comparison of Schemes by Beta.

Beta Reliance Reliance Reliance Reliance Reliance
power Index Banking media NRI
equity
0.9134 0.812 0.9134 0.9134 0.9233
 Comparison of schemes by Beta
0.95

0.9
0.85

0.8
0.75
Scheme1 Scheme3 Scheme5
Mutual fund Schemes

From the above mentioned graph, we can find the

Feb average risk of particular
schemes of mutual fund. This factor shows the financial risk of the fund and
Plus an important role in getting investors faith. This table shows reliance Index fund
Nifty plan has less risk than reliance diversified power sector fund, reliance Banking fund
and reliance media & entertainment fund.

CHAPTER 8
 CONCLUSION

INTRODUCTION

CONCLUSION:-

The project has resulted in providing some important facts. It has been found

that Reliance diversified power sector fund has turned out to the most popular mutual

fund among the investors. This mutual fund got the perfect objective of investment, Net

asset value, highest Absolute returns and annual returns also. These factors are enough to

gain the faith of the investors and for the better prospectus in the market. This fund has
invested in equity & equity related or fixed-income securities of power & other

associated companies. They are ideal for medium to long term investors who are willing

to take moderate risk.

As it is found when the expense ratio should less then profit will increases and

due to this returns to unit holders also increases. As we seen that Reliance diversified

power sector fund has 1.64% expense ratios than other funds.

It is found that Reliance Mutual Fund (RMF) is the biggest Mutual Fund house

in India. It has got considerable popularity in whole India. For best results, Comparison

can be done on the basis of the overall performance made by the mutual fund in the next

table, which is as under:-

OVERALL PERFORMANCE RANKWISE

MUTUAL FUND NAV ABSOLUTE

RETURNS
Reliance diversified
power sector fund I I
Reliance Index fund
Nifty plan V V
 Reliance Banking
fund IV III
Reliance media &
entertainment fund II II
Reliance NRI equity
fund III IV

From the above table it is clear that Reliance diversified power sector fund has

constant and strong hold on the market in terms of overall performance. The Reliance

provides “All in One” facilities which understand the specific needs of investors who

seek information & guidance in making investments in wide range of financial products.

As the whole things are depends on the stock market and due to this the

performance of that fund will be change accordingly.

One is reminded that, “IF YOU CAN IMAGINE IT,

YOU CAN ACHIEVE IT,

 IF YOU CAN DREAM IT,

YOU CAN DO IT.”

After conducting this project, I have found out a very interesting fact that

there has been constant increase in the demand of mutual funds, Investors are more eager

to invest their savings in the mutual fund. This trend has made the investor more aware of

current knowledge.

Mutual fund industry is at the stage of expansion in its business and after the

opening of gates of Indian economy it is getting more popular among the investors. In

last 10 years India become the largest market for the mutual fund investment has getting

highest priority than any other financial investments in India.

BIBLIOGRAPHY

• BOOKS

FINANCIAL MANAGEMENT.

BY - RAVI KISHORE.
BY - R.P.RUSTOGI.
BY - KHAN & JAIN.

• INTERNET WEBSITES
 1. www.reliancemutual.com
2. www.amfiindia.com
3. www.valueresearch.com
4. www.moneycontrol.com

• INVESTORS MANUAL

RELIANCE MUTUAL FUND.