Comparative study on performance of equity schemes of reliance mutual fund mba project report

“Comparative study on performance of Equity Schemes of Reliance Mutual Fund.”

EXECUTIVE SUMMARY

Now a day, there is a tough competition in financial avenues due to increase in the

investment products. People can get many investment options to invest their savings. Selecting

one from the many available options considering many associated factors is a very complex

process.

Reliance Mutual Fund is one of India's largest brokerage and securities distribution

house in India. It is new to Securities market but still among the top 5 performing company

leaving far behind the oldest companies. It is considered to be one of the leading investment

broking houses catering to the needs of both institutional and non-institutional investor

categories with presence all over the country through franchisees and co-coordinators.

In this project I studied the schemes of Reliance Mutual fund and their returns in

various period of time which helped me in knowing how the various schemes are performing

and the reasons behind it. I also came to know the risk associated with the various schemes and

how risk and returns are related. Hence my topic of study is “Comparative study on

performance of Equity Schemes of Reliance Mutual Fund.”

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Design of the Study

Need for the Study:

The study will help the organization in knowing how the Equity schemes of the company’s are

performing and which schemes are preferred most by the investors.

Objectives of the Study

To know the Performance of the preferred equity of Reliance Mutual Fund.

To understand the concept of Mutual Fund its working, mechanism and types traded in

India.

To compare the risk and return associated with the Equity Schemes of Reliance Mutual

Fund.

To know which scheme of Equity of Reliance Mutual Fund is most preferred by the

investors and what factors they consider while investing in reliance mutual fund.

To evaluate the performance Sharpe’s and Treynor’s index are used

Scope of the study

For the study Equity schemes of Reliance Mutual Fund were scanned whose

corpus value is more than 500 crores to compare their performance by calculating risk and

return associated with these schemes. Also a survey was conducted on Reliance Investors to

know the most preferred Equity scheme by the Investors and what factors make them Invest

in Reliance mutual Fund

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To evaluate the performance of the scheme and funds I have applied sharp’s index &

Treynor’s index .

Limitations of the study:

The data collection was strictly confined to secondary sources. Primary data was

associated with only the survey conducted on the investors.

Collecting historical NAV is very difficult.

Selection of schemes for study is very difficult because lot of Varieties in equity Schemes

Techniques of analysis:

1. Return :

Return on a typical investment consists of two components. The basic is the periodic cash

receipts (or income) on the investment, either in the form of interest or dividends. The second

component is the change in the price of the assets-commonly called the capital gain or loss.

This element of return is the difference between the purchase price and the price at which the

assets can be or is sold; therefore, it can be again or a loss.

The return has been calculated as under:

NAVt – NAVt-1

Portfolio return: Rit =---------------------------------

NAV t-1

Where Rit is the difference between Net Asset Values for two consecutive days dividend by the

NAV of the preceding day.

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M.indt – M.indt-1

Market return: Rmt =--------------------------------

M.indt-1

Where Rmt is the difference between market indices of two consecutive days dividend by

the market index for the preceding day

2. Risk :

Risk is neither good nor bad. Risk in holding securities is generally associated with the

possibility that realized returns will be less than expected returns. The difference between the

required rate of returns on mutual fund investment and the risk free return is the risk premium.

Risk can be measured in terms of Beta & standard deviations.

Standard deviation

It is used to measure the variation in individual returns from the average expected returns

over a certain period. Standard deviation is used in the concept of risk of a portfolio of

investments. Higher standard deviation means a greater fluctuation in expected return.

Standard deviation (SD) =\/ var

Where Var = variance

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Var= p (ri-E(r)) 2

Beta :

Beta measures the systematic risk and shows how prices of securities respond to the

market forces. It is calculated by relating the return on a security with return for the market. By

convention, market will have beta 1.0.Mutual fund is said to be volatile, more volatile or less

volatile. If beta is grater than 1 the stock is said to be riskier than market. If beta is less than

1,the indication is that stock is less risky in comparison to market. If beta is zero then the risk is

the same as that of the market. Negative beta is rare.

= nxy-(x)( y)

nx2-(x) 2

Where n= number of days

X =rolling returns of the NSE index

Y= rolling returns of the schemes

3. Sharpe index

Sharpe index measures risk premium of a portfolio, relative to the total amount of risk in

the portfolio. Sharpe index summarizes the risk and return of a portfolio in a single measure

that categorizes the performance of funds on the risk- adjusted basis. The larger the Sharpe’s

index the portfolio over performs the market and vise versa.

Where

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st = Sharpe’s index

Rp= portfolio return

Rf= Risk free rate of return (7.59%)

SD= Standard Deviation of the port folio

St= RP-Rf

SD

4. Treynor’s Index

Treynor’s model is on the concept of the characteristics straight line. The characteristics

line has drawn a relationship between the market return and a specific portfolio without taking

into consideration any direct adjustment for risk. It is also known as reward to volatility ratio

and is defined as:

The formula for Treynor’s Index is:

Portfolio avg return (Rp) – risk-free rate of interest (Rf)

Treynor index (Tn) = ---------------------------------------------------------------------

Beta coefficient of portfolio (Bp)

Rp -Rf

Tn = -------------------------

Bp

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It measures portfolio risk in terms of beta, which is weighted average of individual

security beta. The ratio is investors, for who the fund represents only a fraction of their total

assets. The higher the ratio better is the performance.

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INTRODUCTION

An investment means employment of funds on assets (i.e. securities or mutual funds or

any of the investment avenues) with the aim of earning of income as well as capital

appreciation. There are mainly two attributes while investing to any of the means, i.e. time and

risk. There are mainly four objectives, which the investments activities will carry on those are :

Return

Risk

Liquidity

Hedge against inflation

Safety

There are many alternatives which investment avenues are open to the investors to suit

their needs and nature .The selection of investment alternatives are depends up on the required

level of return and the risk tolerance level. These alternatives range from financial securities to

traditional non-securities investment.

Following are the various investment alternatives.

Negotiable and fixed income securities

Equity shares

Preference share

Debentures

Bonds

Indira vikas patra &Kisan Vikas patra

Government securities

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Money market securities (i.e. treasury bill, commercial paper, certificate of

Deposit etc)

Non-negotiable securities

Bank deposit

Post office deposit

NBFC deposit

Tax saving schemes

Public provident fund scheme

National saving scheme

Life insurance

Mutual funds

Real estate

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Securities

Companies raise funds to finance their projects through various methods. The promoters

can bring their own money or barrow from the financial institutions or mobilizes capital by

issuing securities. The funds ` may be raised through issue of fresh share at per or

premium. Preference shares debenture or global depository receipts. These are mainly two

markets which any company can raise their funds; those are primary market and secondary

market .the companies raise funds for the following purposes:

To promote a new company

To expand an existing company

To diversify the production

To meet the regular working capital requirement

To capitalize the reserves.

NEW ISSUE MARKET (PRIMARY MARKET)

Stock available for the first time is offered through new issue market. The issuer may be

a new company or an existing company. These issues may be of new type or the secure used in

the past. In the new market the issuer can be consider as a manufacturers. The issuing house,

investing banker and broker act as the channel of distributing for new issue. They take the

responsibility of selling the stock to the public

The primary market provides a direct link between the prospective investors and

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Company. The main survives function of the primary market are:

Origination

Underwriting

Distribution

The main objectives of NSE are as follows.

To establish the nation wide trading facility for Equities, Debt instruments and hybrids.

To ensure equal access to investors all over the country through appropriate

communication network.

To enable shorter settlement cycle and book entry settlement system.

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INTRODUCTION TO THE MUTUAL FUND

Mutual Funds are dynamic financial institutions, which play a crucial role in an economy my

mobilizing a link between savings and the capital market. Therefore the activities of Mutual

Funds have both short and long term impact on the savings and capital markets and the national

economy. Mutual Funds thus assist the process of financial deepening and intermediation. They

mobilize Funds in the savings market and act as complementary to banking, at the same time

they also compete with banks and other financial institutions. In the process stock market

activities are also significantly influenced by Mutual Funds. The scope and efficiency of Mutual

Funds are influenced by overall economic fundamentals, the interrelationship between the

financial and real sector, the nature of development of the savings and capital markets, market

structure, institutional arrangements and overall policy regime.

MEANING

A MUTUAL FUND IS A COMMON POOL OF MONEY INTO WHICH THE INVESTORS

PLACE THEIR CONTRIBUTIONS THAT ARE TO BE INVESTED IN ACCORDANCE

WITH A STATED OBJECTIVE.

Mutual fund is a mechanism for pooling the resources by issuing units to the investors

And investing funds in securities in accordance with objectives as disclosed in offer document

Investments in securities are spread across a wide cross-section of industries and sectors and thus

the risk is reduced. Diversification reduces the risk because all stocks may not move in the same

direction in the same proportion at the same time. Mutual fund issues units to the investors in

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accordance with quantum of money invested by them. Investors of mutual funds are known as

unit holders.

The investors in proportion to their investments share the profits or losses. The mutual funds

normally come out with a number of schemes with different investment objectives, which are

launches from time to time. A mutual fund is required to be registered with Securities and

Exchange Board of India (SEBI), which regulates securities markets before it can collect funds

from the public.

About Reliance Capital Asset Management Ltd.

Reliance Capital Asset Management Limited (RCAM), a company registered under the

Companies Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund.

Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital

Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management

Limited is held by Reliance Capital Limited.

Reliance Capital Asset Management Limited was approved as the Asset Management

Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30,

1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with

RCAM dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual

Funds) Regulations, 1996. Pursuant to this IMA, RCAM is authorised to act as Investment

Manager of Reliance Mutual Fund. The networth of the Asset Management Company including

preference shares as on March 31, 2005 is Rs.30.13 crores. Reliance Mutual Fund has launched

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twenty five Schemes till date, namely: Reliance Vision Fund (September 1995), Reliance

Growth Fund (September 1995) Reliance Income Fund (December 1997), Reliance Liquid Fund

(March 1998), Reliance Medium Term Fund (August 2000), Reliance Short Term Fund

(December 2002), Reliance Fixed Term Scheme (March 2003), Reliance Banking Fund (May

2003), Reliance Gilt Securities Fund (July 2003), Reliance Monthly Income Plan (December

2003), Reliance Diversified Power Sector Fund (March 2004) Reliance Pharma Fund ( May

2004), Reliance Floating Rate Fund (August 2004), Reliance Media & Entertainment Fund

(September 2004), Reliance NRI Equity Fund (October 2004), Reliance NRI Income Fund

(October 2004), Reliance Index Fund (January 2005), Reliance Equity Opportunities Fund

(February 2005), Reliance Fixed Maturity Fund - Series I (March 2005), Reliance Fixed

Maturity Fund - Series II (April 2005), Reliance Regular Saving Fund (May 2005), Reliance

Liquidity Fund (June 2005), Reliance Tax Saver (ELSS) Fund (July 2005), Reliance Fixed Tenor

Fund (November 2005) and Reliance Equity Fund (Feb 2006).

RCAM has been registered as a portfolio manager vide SEBI Registration No.

INP000000423 and renewed effective 1st August, 2003.RCAM has commenced these activities.

It has been ensured that key personnel of the AMC, the systems, back office, bank and securities

accounts are segregated activity wise and there exists systems to prohibit access to inside

information of various activities. As per SEBI Regulations, it will further ensure that AMC meets

the capital adequacy requirements, if any, separately for each such activity.

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TRUSTEES: Trustees are like internal regulators in a mutual fund, and their job is to protect the

interest of unitholders. Sponsors appoint trustees. Trustees appoint the AMC, which,

subsequently seek their approval for the work it does, and reports periodically to them on how

the business is being run. Trustees float and market schemes, and secure necessary approvals.

They check if the AMC’s investments are within defined limits and whether the fund’s assets are

protected. Trustees can be held accountable for financial irregularities in the mutual fund.

CUSTODIAN: A custodian handles the investment back office of a mutual fund. Its

responsibilities include receipt and delivery of securities, collection of income, distribution of

dividends, and segregation of assets between schemes. The sponsor of a mutual fund mutual fund

cannot act as a custodian to the fund. This condition, formulated in the interest of investors,

ensures that the assets of mutual fund are not in the hands of its sponsor.

REGISTRAR : Registrars, also known as transfer agents, handle all investor-related services.

This includes issuing and redeeming units, sending fact sheet and annual reports. Some fund

houses handle such functions in-house.

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STRUCTURE OF MUTUAL FUND IN INDIA:

Trustees SEBI Sponsor

Operations AMC

Fund Manager Market / Sales

Mutual Fund

Schemes

Investor

GROWTH OF MUTUAL FUNDS:

The Indian mutual fund as passed through three phases. The first phase was between 1964 and

1987 and only player was the trust of India, which had a total asset of Rs. 6700/- crores and the

end of 1988.the second phase is between 1987 and 1993 during which period 8 funds were

established (6 by banks and one each by LIC and GIC). The total asset under management had

grown to Rs.61, 028/- crores at and of 1994 and the numbers of schemes were 167.

The third began with the entry of private and foreign sectors in the mutual fund industry in 1993.

Kothari pioneer mutual fund was the first fund to be established by the private sector in

association with a foreign fund.

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As at the end of financial year 2000 (31 march) 32 funds were functioning with Rs. 1,13,005

crores as total asset under management. As on august end 2000, there were 33 with 391 schemes

and assets under management with Rs. 1,02,849 crores.

The securities and exchange board of India (SEBI) came out with comprehensive regulation in

1993, which defined the structure of mutual fund and asset management companies for the first

time. Currently there are 34 of mutual fund organizations in India managing over Rs.1, 02,000/-

crore

First investors pool their money in Mutual fund through franchisee or agents or himself in

particular scheme.

Fund manager collect that money and diversify that money in different securities.

Then that securities generate return.

That returns will passed back to the investors.

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THE DIFFERENT TYPES OF MUTUAL FUNDS:

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-end 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 specified 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 the units to the

mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that

at least one of the two exit routes is provided to the investor i.e. either repurchase facility or

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through listing on stock exchanges. These mutual funds schemes disclose NAV generally on

weekly basis.

Schemes according to Investment Objective:

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

considering its investment objective. Such schemes may be open-ended or close-ended schemes

as described earlier. Such schemes may be classified mainly as follows:

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 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.

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.

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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.

Balanced Fund

The aim of balanced funds is to provide both growth and regular income as such schemes invest

both in equities and fixed income securities in the proportion indicated in their offer documents.

These are appropriate for investors looking for moderate growth. They generally invest 40-60%

in equity and debt instruments. These funds are also affected because of fluctuations in share

prices in the stock markets. However, NAVs 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 instruments

such as treasury bills, certificates of deposit, commercial paper and inter-bank call money,

government securities, etc. Returns on these schemes fluctuate much less compared to other

funds. These funds are appropriate for corporate and individual investors as a means to park their

surplus funds for short periods.

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Gilt Fund

These funds invest exclusively in government securities. Government securities have no default

risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic

factor as is the case with income or debt oriented schemes.

Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P

NSE 50 index (Nifty), etc These schemes invest in the securities in the same weight age

comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or

fall in the index, though 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 exchanges.

Sector specific funds/schemes

These are the funds/schemes, which invest in the securities of only those sectors or industries as

specified in the offer documents. E.g. Pharmaceuticals, Software, Fast Moving Consumer Goods

(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of

the respective sectors/industries. While these funds may give higher returns, they are more risky

compared to diversified funds. Investors need to keep a watch on the performance of those

sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

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Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act,

1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity

Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax

benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth

opportunities and risks associated are like any equity-oriented scheme.

Load or no-load Fund

A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each time one

buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund

for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as well

as exit load charged is 1%, then the investors who buy would be required to pay Rs.10.10 and

those who offer their units for repurchase to the mutual fund will get only Rs.9.90 per unit. The

investors should take the loads into consideration while making investment as these affect their

yields/returns. However, the investors should also consider the performance track record and

service standards of the mutual fund, which are more important. Efficient funds may give higher

returns in spite of loads. A no-load fund is one that does not charge for entry or exit. It means the

investors can enter the fund/scheme at NAV and no additional charges are payable on purchase

or sale of units.

Advantages of Mutual Fund;

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Professional Management: Qualified professionals manage your money but they are not

alone. They have a research team that continuously analyses the performance and

prospects of companies. They also select suitable investment to achieve the objective of

the scheme, so you see that it is a continues process that takes time and expertise that will

add value to your investment. These fund managers are in a better position to manage

investments and get a higher return.

Diversification: the Cliché, “Don’t put all your eggs in one basket”. Really applies to the

concept of intelligent investing. Diversification lowers the risk of loss by spreading your

money across various industries it is a rare occasion when all stocks decline at the same

time and in the same proportion.

Choice of schemes: Mutual Fund offers a variety of schemes that will suit individuals

needs over a lifetime. When you enter a new stage in your life, all you need to do is sit

down with your investments advisers who will help you to re-arrange your portfolio to

suit your altered life style.

Affordability: As small investors, we may find that it is not possible to buy shares of

larger corporations. Mutual funds generally buy and sell securities in large volumes,

which allow investors to benefit from lower trading costs. The smallest investor can get

started on mutual funds because of the minimal investment requirements. We can invest

with a minimum of Rs. 500 in Systematic Investment Plan (SIP) on a regular basis.

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Tax benefits: Investments held by investors for a period of 12 months or more qualify

for capital gains and will be taxed accordingly. These investments also get the benefit of

indexation. And also the dividend received by an investor is tax free in the hands of

investors.

Liquidity: with open-end funds, we can redeem all or part of investment any time when

we wish and receive the current value of the shares or the NAV related price. Funds are

more liquid than most investments in shares, deposits and bonds and the process is

standardize, making it quick and efficient so that we can get your cash in hand as soon as

possible.

Rupees Cost Averaging: Through using this concept of investing the same amount

regularly, mutual funds give you the advantage of getting the average unit price over the

long-term. This reduces your risk and also allows you to discipline yourself by actually

investing every month or quarterly and not making sporadic investments.

The Transparency of Mutual Funds: The performance of a mutual fund is reviewed by

various publications and rating agencies, making it easy for investors to compare one to

the other. Once we became part of mutual fund scheme, we were provided with regular

updates, for example daily NAVs, as well as information on the specific investments

made and the fund manager’s strategy and out look of the scheme.

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Regulations of Mutual Funds: All mutual funds are required to register with SEBI.

They are obliged to follow strict regulations designed to protect investors. All operations

are also regularly monitored by the SEBI.

Disadvantages Of Mutual Fund

Mutual funds have their drawbacks and may not be for everyone:

No Guarantees: No investment is risk free. If the entire stock market declines in value,

the value of mutual fund shares will go down as well, no matter how balanced the

portfolio. Investors encounter fewer risks when they invest in mutual funds than when

they buy and sell stocks on their own. However, anyone who invests through a mutual

fund runs the risk of losing money.

Fees and commissions: All funds charge administrative fees to cover their day-to-day

expenses. Some funds also charge sales commissions or "loads" to compensate brokers,

financial consultants, or financial planners. Even if you don't use a broker or other

financial adviser, you will pay a sales commission if you buy shares in a Load Fund.

Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20

to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales,

you will pay taxes on the income you receive, even if you reinvest the money you made.

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CONTENTS

- Organization Profile

- Sampling

- Date Collection Methods

- Measuring Tools

RELIANCE MONEY

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The Mutual Fund

About Reliance Mutual Fund

Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882

with Reliance Capital Limited (RCL), as the Settlor/Sponsor and Reliance Capital Trustee Co.

Limited (RCTCL), as the Trustee.

RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration

number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been

changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBI's letter no.

IMD/PSP/4958/2004 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 and to provide investors the opportunities to make investments in diversified

securities.

The main objectives of the Trust are :

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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 realize the effects without

any limitation

Vision, Mission & Market Strategy

Vision statement –

“Empowering everyone to live their dream”

Mission statement-

“To offer unparalleled value by providing the customer transparent, convenient and

effective anytime-anywhere integrated financial transaction capability”

Marketing strategy- to provide

Simple, easy-to-understand, safe and secure trading platform/software

Uncomplicated, easy-to-understand brokerage/trading cost structure without any

riders

Easy access to the financial market through convenient modes of distribution

Sound, genuine, unbiased advise individual investments.

Detail Study about the company

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The easiest, fastest and most convenient way to carry out your financial transactions is now at

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Products and Services

A product for every need: Reliance Money is the most comprehensive platform which allows

you to invest in Shares, Mutual Funds, Derivatives (Futures & Options), Commodities, Forex,

IPOs, Insurance and other financial products. Simply put, we offer you a product for almost

every investment need.

Investing in Mutual Funds:

Reliance Money brings you a unique, hassle-free and paperless way to invest in Mutual Funds.

You can now invest on-line in Mutual Funds through Reliance Money No more filling

application forms manually or any going through other paperwork. You need no signatures or

proof of identity for investing. Once you place a request for investing in a particular fund, there

are no manual processes involved. Your bank funds are automatically debited or credited while

simultaneously crediting or debiting your unit holdings.You also get control over your

investments with on-line order confirmations and order status tracking. You get to know the

performance of your investments through online updation of your portfolio with current NAVs.

Reliance Money offers you various options while investing in Mutual Funds:

Purchase: Buying of Mutual Fund units is very convenient without the hassles of filling in the

applications manually. Redemption: As with Purchases, redemptions too can be done online.

Switch: You can shift money from one scheme to another in the same mutual fund house, with

the click of a button.

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Reliance Mutual Funds

Equity Schemes :

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.

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.

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.

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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.

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.

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.

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.

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,

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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.

Debt Schemes :

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 unitholders and the secondary objective is

growth of capital.Primarily the investment shall be made in debt and money market securities

(i.e. 80%) with a small exposure (i.e. upto 20%) in equity.

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

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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 Instruments.

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 unitholders

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 Instruments.

Reliance Fixed Term Scheme :

(Close-ended Income Scheme) The primary objective of the Scheme is to seek to achieve regular

returns / growth of capital by investing in a portfolio of fixed income securities normally

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maturing in line with the time profile of the plan with the objective of limiting interest rate

volatility.

Reliance Floating Rate Fund :

(An Open End Income Scheme) The primary objective of the scheme is to generate regular

income through investment in a portfolio comprising substantially of Floating Rate Debt

Securities (including floating rate securitized debt and Money Market Instruments and Fixed

Rate Debt Instruments swapped for floating rate returns). The scheme shall also invest in Fixed

rate debt Securities (including fixed rate securitised debt, Money Market Instruments and

Floating Rate Debt Instruments swapped for fixed returns

Reliance NRI Income Fund :

(An Open-ended Income scheme) The primary investment objective of the Scheme is to generate

optimal returns consistent with moderate levels of risks. This income may be complimented by

capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in

debt Instruments.

Reliance Fixed Maturity Fund - Series I :

(A Close Ended Income Scheme) The primary investment objective of the Scheme is to seek to

achieve regular returns / growth of capital by investing in a portfolio of fixed income securities

normally maturing in line with the time profile of the Plan with the objective of limiting interest

rate volatility.

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Reliance Fixed Maturity Fund - Series II :

(A closed ended Income Scheme) The primary investment objective of the Scheme is to seek to

achieve growth of capital by investing in a portfolio of fixed income securities normally

maturing in line with the time profile of the respective plans.

Reliance Liquidity Fund :

(An Open - ended Liquid Scheme) The 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 Instruments.

Debt Option : The primary investment objective of this plan is to generate optimal returns

consistent with moderate level of risk. This income may be complemented by capital

appreciation of the portfolio. Accordingly investments shall predominantly be made in Debt &

Money Market Instruments.

Equity Option : The primary investment objective is to seek capital appreciation and or

consistent returns by actively investing in equity / equity related securities.

Sector Specific Schemes

These are the funds/schemes which invest in the securities of only those sectors or industries as

specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods

(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance

of the respective sectors/industries. While these funds may give higher returns, they are

more risky compared to diversified funds. Investors need to keep a watch on the performance

of those sectors/industries and must exit at an appropriate time.

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Sector Specific Schemes

Sector Funds are specialty funds that invest in stocks falling into a certain sector of the economy.

Here the portfolio is dispersed or spread across the stocks in that particular sector. This type of

scheme is ideal for investors who have already made up their mind to confine risk and return to a

particular sector

Reliance Banking Fund

Reliance Mutual Fund has an Open-Ended Banking Sector Scheme which has the primary

investment objective to generate continuous returns by actively investing in equity / equity

related or fixed income securities of banks.

Reliance Diversified Power Sector Fund

Reliance Diversified Power Sector Scheme is an Open-ended Power Sector Scheme. The

primary investment objective of the Scheme is to seek to generate consistent returns by actively

investing in equity / equity related or fixed income securities of Power and other associated

companies.

Reliance Pharma Fund

Reliance Pharma Fund is an Open-ended Pharma Sector Scheme. The primary investment

objective of the Scheme is to generate consistent returns by investing in equity / equity related or

fixed income securities of Pharma and other associated companies.

Reliance Media & Entertainment Fund

Reliance Media & Entertainment Fund is an Open-ended Media & Entertainment sector scheme.

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The The primary investment objective of the Scheme is to generate consistent returns by

investing in equity / equity related or fixed income securities of media & entertainment and other

associated companies.

NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net

of its liabilities. NAV per unit is simply the net value of assets divided by the number of units

outstanding. Buying and selling into funds is done on the basis of NAV-related prices. NAV is

calculated as follows:

NAV= Market value of the fund’s investments+Receivables+Accrued Income.

Liabilities-Accrued Expenses

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Methodology

Data sources :

Primary Data: Primary data was collected by administering questionnaire. It is

systematic collection of information directly from the Reliance Mutual Fund

Investors . The basic purpose of collecting primary data is to know the preferred

Equity Schemes of Reliance Mutual funds

Secondary data: Secondary data’s are collected from Reliance website, financial

journals, recent Fact sheet of Reliance mutual fund relating to mutual funds

Sampling

Sample size: 50 Reliance Mutual fund Investors

Area of research: Belgaum City.

Research approach: Survey method.

Research Instrument: Questionnaire.

.

]

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CONTENTS

- Results & Discussion with Charts & Graphs

- Summary, Conclusion & a Proposed Action Plan with Resource Requirements &

Projected Benefits to the Organization

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PERFORMANCE COMPARISM OF MUTUAL FUND SCHEMES

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Equity diversified schemes

There is lot of variety schemes offered by AMCs. Equity diversified is one of the scheme

offered by the AMC .the selection criteria of schemes is totally depend on the fund size and age

of the fund. The scheme, which has the corpus value, is more than 500Crs .

The following are the equity-diversified schemes in the selected funds. at the current date

as 06/03/07

Tables for fund size

Reliance Mutual Fund Equity schemes

Scheme name Fund size DOI FUND

CLASS

Reliance Equity Fund (G)

4359.6 03/07/06 ED

Reliance Equity Opportunities Fund

(G)

2385.65 03/07/05 ED

Reliance Growth Fund (G)

3263.71 09/08/95 ED

Reliance Vision Fund (G)

2473.68 09/07/95 ED

Reliance Tax Saver (ELSS) Fund 1501.78 08/23/05 ETS

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(G)

1. Return:

Name of Scheme

DOI (30/03/07)

Returns (annualized) 5yrsAvg return 1 yr 2yr 3yr 4yr 5yr

Reliance Growth Fund (G)199.52 48.21 93.23 80.40 27.21 53.64 60.54

Reliance Vision Fund (G)137.65 50.45 62.62 60.56 34.41 81.42 57.89

Reliance Tax Saver (ELLS) Fund(G)

115.193 47.48 106.91 53.02 29.77 18.07 51.05Reliance Equity

Opportunities Fund (G)

45.4206 48.24 63.85 70.46 32.17 -2.24 42.50Reliance Equity Fund (G)

26.52 32.47 39.03 28.00 9.97 0.00 27.37

NAVt – NAVt-1

Portfolio return: Rit =---------------------------------

NAV t-1

Where Rit is the difference between Net Asset Values for two consecutive days dividend by the

NAV of the preceding day.

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2. Risk

Beta

Scheme name 5 years avg return* Beta

Reliance Growth Fund (G) 60.54 0.91

Reliance Vision Fund (G) 57.89 0.98

Reliance Tax Saver (ELLS) Fund(G) 51.05 0.93Reliance Equity Opportunities Fund (G)

42.50 0.96Reliance Equity Fund (G)

27.37 0.94

* Returns are annualized

= nxy-(x)( y)

nx2-(x) 2

Where n= number of days

X =rolling returns of the NSE index

Y= rolling returns of the schemes

Beta describes the relationship between the stock’s return and the index returns. it describes

the risk in the portfolio with comparing market risk as 1 .

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If beta =1

One percent changes in market index return causes exactly one percent change in the stock

returns. it indicates that the stock moves in tandem with the market .

If Beta <1

Then the stock is less volatile compared to the market.

If Beta >1

Then the stock is more volatile compared to the market. The stock value

With more then 1 beta value is considered to be risky.

If Beta –ve: native Beta indicates that the stock returns moves in the opposite direction to the market return.

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Standard deviation

It is used to measure the variation in individual returns from the average expected

returns over a certain period. Standard deviation is used in the concept of risk of a

portfolio of investments. Higher standard deviation means a greater fluctuation in

expected return.

Name of Scheme

DOI (30/03/07)

Returns (annualized) 5yrsAvg return SD1 yr 2yr 3yr 4yr 5yr

Reliance Growth Fund (G)199.52 48.21 93.23 80.40 27.21 53.64 60.54 23.55

Reliance Vision Fund (G)137.65 50.45 62.62 60.56 34.41 81.42 57.89 15.43


115.193 47.48 106.91 53.02 29.77 18.07 51.05 30.59Reliance Equity

Opportunities Fund (G)

45.4206 48.24 63.85 70.46 32.17 -2.24 42.50 26.00Reliance Equity Fund (G)

26.52 32.47 39.03 28.00 9.97 0.00 27.37 14.59

Standard deviation (SD) =\/ var

Where Var = variance

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Var= p (ri-E(r)) 2

Return & Risk

Name of Scheme DOI(30/03/07)5 yrs avg returns sd beta

Reliance Growth Fund (G)3263.71

60.54 23.55 0.91

Reliance Vision Fund (G)2473.68

57.89 15.43 0.98

Reliance Tax Saver (ELLS) Fund(G)1501.78

51.05 30.59 0.93

Reliance Equity Opportunities Fund (G) 2385.6542.50 26.00 0.96

Reliance Equity Fund (G) 4359.627.37 14.59 0.94

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Sharpe’s

Sharpe’s index measures the risk premium of the portfolio relative to the total amt of risk in the portfolio. This risk premium is the difference between the

portfolio’s average rate of return and the risk less rate of return. The index assigns the highest values to assets that have best risk-adjusted average rate of returns.

Name of Scheme DOI(30/03/07)

5 yrs avg returns rp rf sd st


60.54 8 23.55 2.23


57.89 8 15.43 3.23


51.058

30.59 1.40Reliance Equity Opportunities Fund (G) 2385.65

42.508

26.00 1.33Reliance Equity Fund (G) 4359.6

27.378

14.59 1.32

Where

st =Sharpe’s index

Rp=portfolio return

Rf=Risk free rate of return (8 %)

SD= standard deviation of the port folio

St= RP-Rf

SD

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Sharpe's Ranking to Reliance Equity Diversified Schemes

0

0.5

1

1.5

2

2.5

3

3.5

Sharpe’s

Schemes

Per

form

ance

Reliance GrowthFund (G)

Reliance VisionFund (G)

Reliance Tax Saver(ELLS) Fund(G)

Reliance EquityOpportunities Fund(G)Reliance EquityFund (G)

Interpretation:

Reliance Vision Fund (G) is performing well and is ranked No 1 according to Sharpe’s as

it is giving higher returns compared to other Schemes.

Name of Scheme DOI(30/03/07)

5 yrs avg returns rp rf Beta tn


60.54 8 0.91 57.74Reliance Vision Fund (G) 2473.68 57.89 0.98 50.91

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8


51.058

0.93 46.29Reliance Equity Opportunities Fund (G) 2385.65

42.508

0.96 35.94Reliance Equity Fund (G) 4359.6

27.378

0.94 20.61

Treynor’s Index:

In Treynor’s higher the ratio higher the performance.

Tn =Treynor’s index

Rp=portfolio return

Rf=Risk free rate of return (8 %)

Formula

Tn= RP-Rf

Beta

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Treynors Ranking on Reliance Equity Diversified Fund

0

10

20

30

40

50

60

70

Treynor’s

Schemes

Reliance GrowthFund (G)

Reliance VisionFund (G)

Reliance TaxSaver (ELLS)Fund(G)

Reliance EquityOpportunitiesFund (G)

Reliance EquityFund (G)

Interpretation:

Reliance Growth Fund (G) is performing well and is ranked No 1 according to Treynor’s

index as it is giving higher returns compared to other Schemes according to him and also the

risk involved is less

Performance Evaluation Tables

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Name of the schemeDOI (30/06/06) Rp Beta SD Sharpe’s Treynor’s


60.54 0.91 23.55 2.23 57.74


57.89 0.98 15.43 3.23 50.91


1501.7851.05 0.93 30.59 1.40 46.29

Reliance Equity Opportunities

Fund (G) 2385.6542.50 0.96 26.00 1.33 35.94

Reliance Equity Fund (G) 4359.627.37 0.94 14.59 1.32 20.61

Analysis of Survey

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1.Sources from Investors came to know about Reliance Mutual fund

Frequency Percent Valid Percent Cumulative Percent

Valid Friends/Relatives 12 24.0 24.0 24.0

Newspapers/Televisions

7 14.0 14.0 38.0

Brokers/Agents 16 32.0 32.0 70.0

Financial Consultants

15 30.0 30.0 100.0

Total 50 100.0 100.0

Interpretation:

For the popularity of the mutual funds all the means contributed all most equally but the

dominated factor in these factors is advice from the Brokers/Agents, which contributed around

32% followed by the financial agents at 30%.

2.Reliance Schemes most preferred by investors

Frequency Percent Valid Percent

Cumulative Percent

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Valid Equity 30 60.0 60.0 60.0

Debt 20 40.0 40.0 100.0

Total 50 100.0 100.0

Interpretation:

60% of the respondents prefer equity schemes as investors now days are ready to risk

because they are getting good returns, whereas 40% of the respondents prefer debt schemes.

. 3a.Reliance equity fund


Cumulative Percent

Valid 1 9 18.0 18.0 18.0

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2 1 2.0 2.0 20.0 4 30 60.0 60.0 80.0 5 10 20.0 20.0 100.0 Total 50 100.0 100.0

Interpretation:

Reliance equity fund is ranked 4 th by majority of the Investors as the returns are not so

high compared to the other Schemes of Equity.

3b.Reliance equity Opportunity fund

Frequency Percent Valid Cumulativ

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Percent e Percent Valid 1 1 2.0 2.0 2.0 2 9 18.0 18.0 20.0 4 10 20.0 20.0 40.0 5 30 60.0 60.0 100.0 Total 50 100.0 100.0

Interpretation:

Reliance Equity opportunity fund is ranked 5th by 60% of the Investors investing in Reliance

mutual fund as the returns are low and also riskier compared to other 4 schemes.

3c.Reliance Growth fund

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Cumulative Percent

Valid 1 26 52.0 52.0 52.0 2 3 6.0 6.0 58.0 3 18 36.0 36.0 94.0 4 3 6.0 6.0 100.0 Total 50 100.0 100.0

3d. Reliance Vision fund

Frequency Percent Valid PercentCumulative

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Percent Valid 1 2 4.0 4.0 4.0 2 24 48.0 48.0 52.0 3 16 32.0 32.0 84.0 4 7 14.0 14.0 98.0 5 1 2.0 2.0 100.0 Total 50 100.0 100.0

3e.Reliance Tax Saver-ELSS


Cumulative Percent

Valid 1 12 24.0 24.0 24.0 2 14 28.0 28.0 52.0

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3 15 30.0 30.0 82.0 5 9 18.0 18.0 100.0 Total 50 100.0 100.0

4a. Safety


Cumulative Percent

Valid 1 10 20.0 20.0 20.0 2 33 66.0 66.0 86.0 5 2 4.0 4.0 90.0 6 5 10.0 10.0 100.0 Total 50 100.0 100.0

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Interpretation:

Out of the 50 respondents 66 % of them have rated 2 to safety because every investors

needs safety in his investment made but also some of them have given least preference to safety

because as we know “higher the risk higher the return”.

4b. Rate of Return

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Interpretation:

66% of the respondents have ranked rate of return as No 1 ranking this is because of the

changing trend where people are ready to take risk but they expect good returns and higher return

each time.

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Cumulative Percent

Valid 1 33 66.0 66.0 66.0 2 9 18.0 18.0 84.0 3 1 2.0 2.0 86.0 4 2 4.0 4.0 90.0 5 5 10.0 10.0 100.0 Total 50 100.0 100.0


4c. Liquidity


Cumulative Percent

Valid 1 2 4.0 4.0 4.0 2 1 2.0 2.0 6.0 3 9 18.0 18.0 24.0 4 26 52.0 52.0 76.0 5 12 24.0 24.0 100.0 Total 50 100.0 100.0

Interpretation:

Out of the 50 respondents 52% of them have ranked liquidity as 4 th , whereas only 10%

of them have ranked 3rd which shows liquidity is given least preference when compared to other

factors.

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4d. Tax Benefit


Cumulative Percent

Valid 2 2 4.0 4.0 4.0 3 26 52.0 52.0 56.0 4 9 18.0 18.0 74.0 5 1 2.0 2.0 76.0 6 12 24.0 24.0 100.0 Total 50 100.0 100.0

Interpretation:

52% of the respondents have ranked 3rd for tax benefit which shows people give

importance for tax benefit as it saves the investors money.

4e. Brand name

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Cumulative Percent

Valid 2 5 10.0 10.0 10.0 3 2 4.0 4.0 14.0 4 13 26.0 26.0 40.0 5 18 36.0 36.0 76.0 6 12 24.0 24.0 100.0 Total 50 100.0 100.0

Interpretation:

36% of the respondents have ranked 5 th to Brand which shows importance is given to

brand name of the company in which investors are investing as it is shows the credit worthiness

of the company.

4f. Flexibility

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Cumulative Percent

Valid 1 5 10.0 10.0 10.0 3 12 24.0 24.0 34.0 5 12 24.0 24.0 58.0 6 21 42.0 42.0 100.0 Total 50 100.0 100.0

Interpretation: 42% of the respondents have ranked 6 th to Flexibility which shows not much importance

is given to flexibility as far as investors are getting good return from the schemes.

5a. Reliance Mutual Fund

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Cumulative Percent

Valid 1 14 28.0 28.0 28.0 2 34 68.0 68.0 96.0 4 2 4.0 4.0 100.0 Total 50 100.0 100.0

Interpretation:

Majority of the respondents have ranked Reliance mutual funds as 2 nd when compared to

the other 4 companies so this shows that in a short span of time Reliance has made a good image

in the eyes of the investors.

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5b. HDFC Mutual Fund


Cumulative Percent

Valid 1 2 4.0 4.0 4.0 2 1 2.0 2.0 6.0 3 35 70.0 70.0 76.0 4 9 18.0 18.0 94.0 5 3 6.0 6.0 100.0 Total 50 100.0 100.0

Interpretation:

Majority of the investors have ranked HDFC mutual fund as 3 rd when compared to other

mutual fund so comparatively it is doing well.

5c. Franklin Templeton Mutual Fund

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Frequency Percent Valid Percent Cumulative Percent

Valid 1 32 64.0 64.0 64.0 2 15 30.0 30.0 94.0 3 2 4.0 4.0 98.0 4 1 2.0 2.0 100.0 Total 50 100.0 100.0

Interpretation:

Franklin has been ranked NO 1 mutual fund company by the respondents when compared

to the other mutual funds as it has maintained its returns over a long period of time.

5d. UTI mutual Fund


Cumulative Percent

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Valid 1 1 2.0 2.0 2.0

3 10 20.0 20.0 22.04 5 10.0 10.0 32.05 34 68.0 68.0 100.0

Total 50 100.0 100.0

Interpretation:

Majority of the investors are not preferring UTI mutual funds as their returns are very low

when compared to their previous records and so it is been ranked 4th by the investors.

5e. ICICI mutual fund


Cumulative Percent

Valid 1 1 2.0 2.0 2.0 3 3 6.0 6.0 8.0 4 33 66.0 66.0 74.0 5 13 26.0 26.0 100.0 Total 50 100.0 100.0

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Interpretation:

Majority of the investors are not preferring UTI mutual funds as their returns are very low

when compared to other 3 companies but it is ranked 4th that shows it is performing good than

UTI mutual fund.

Findings

32% of the Investors have come to know about Reliance mutual fund through

Brokers/Agents followed by 30% who have come to know through Financial

Consultants

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60% of the Investors are giving more preference to Equity schemes as they are giving

higher return whereas 40% of them prefer Debt Schemes because of the Safety they

provide

52% of the investors prefer Reliance Growth Fund followed by Reliance Vision Fund and

other Schemes.

66% of the investors give most importance to Rate of return as they expect higher and

higher returns followed by Safety as it is also important aspect of investors.

Reliance Mutual Fund is Ranked 2nd by the Investors i.e. 68% of them have ranked

Reliance as 2nd and Franklin Templeton is Ranked 1st.

SUGGESTIONS

Holding a seminar and presentations or Investors meet in the stock broking firm help the

investors to remove any misconception regarding the Mutual Fund and this will create

awareness of Mutual fund.

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Agents are the main person who influences the investment decision. Company can hire

fresh graduates train them and sponsor for the AMFI exam just like insurance companies

who conduct IRDA training. This will increase the feet on street for the mutual fund

companies.

Company has to provide timely services to its customers so that it can compete with its

competitors like Franklin Templeton and HDFC.

CONCLUSION

After the analysis made on the performance of Equity Schemes of Reliance

Mutual Fund I can conclude that Equity schemes are most preferred by Investors and overall

Reliance Vision Fund and Reliance Growth scheme are doing extremely well in the market

satisfying the customer wants of high returns and also through survey conducted it is clear

that Reliance is performing quite well so it has been ranked 2nd among the selected

companies. From the study we also came to know that according to Sharpe ‘s Reliance

Vision fund is ranked First but according to Treynor’s Reliance growth fund is ranked First.

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CONTENTS

- QUESTIONAREE- ANNEXURE- BIBLOGRAPHY

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QUESTIONNAIRE

Dear Sir/Madam: Personal Details:

Name : _____________________________________________

Address : _____________________________________________

Occupation : _____________________________________________

Contact No : _____________________________________________

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

Friends /Relatives News papers / magazines

Brokers/Agents Financial consultants. Other_________________________

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

Equity Schemes Debt Scheme

3. Which Equity Scheme you prefer the most in Reliance Mutual Fund? (Rank them from 1 to 5, 1 being the most preferred and 5 being the least)

Reliance Growth [ ]

Reliance Vision Fund [ ]

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Reliance Equity Opportunity Fund [ ]

Reliance Tax Saver (ELSS) Fund [ ]

Reliance Equity Fund [ ]

4. 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)

Safety Rate of return

Liquidity Tax benefit

Flexibility Brand Name

5. 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 [ ] Pru ICICI [ ]

THANK YOU

Annexure

Details about top schemes

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RELIANCE VISION FUND

RELIANCE GROWTH FUND

Structure Open ended Equity Growth Scheme

Inception Date 08/10/1995

Corpus 3263.71

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Corpus 2473.68 crore

Minimum Invst 5000

Fund Manager Ashwini Kumar

Entry Load 2.25%

Exit Load Nil

Investment Objective 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.


Minimum Invst 5000

Fund Manager Sunil Singhania

Entry Load 2.25%

Exit Load Nil

Investment Objective The primary investment objective of the scheme is to achieve long-term growth of capital by investing in equity and equity related securities through a research-basedinvestment approach.

RELIANCE TAX SAVER FUND



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Corpus 1501.78

Minimum Invst 500

Fund Manager Ashwani Kumar

Entry Load 2.25%

Exit Load Nil

Investment Objective 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.

RELIANCE EQUITY OPPURTUNITY FUND

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RELIANCE EQUITY FUND

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Corpus Rs 2,385.65 crore

Minimum Invst 5000

Fund Manager .Sailesh Raj Bhan

Entry Load 2.25%

Exit Load Nil

Investment Objective The primary investment objective of the scheme is to seek to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio constitutedof equity securities & equity-related securities and the secondary objective is to generate consistent returns by investing in Debt and Money Market securities.


Bibliography

Reliance Fact Sheets

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Corpus Rs 4359.6 crore

Minimum Invst 5000

Fund Manager .Sailesh Raj Bhan

Entry Load 2.25%

Exit Load Nil

Investment Objective The primary investment objective of the scheme is to seek to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio constitutedopportunities by investing in a portfolio constituted of equity and equity related securities of top 100 companies by market capitalization and of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns byinvesting in debt and money market securities.


Invest smart financial Journal

Websites

- www.myris.com

- www.reliancemf.com

- www.equitymaster.com

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http://www.equitymaster.com/

http://www.reliancemf.com/

http://www.myris.com/

Comparative study on performance of equity schemes of reliance mutual fund mba project report

Economy & Finance

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