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RAI BUSINESS SCHOOL
MADURAI KAMARAJ UNIVERSITY,BHOPAL
YEAR : 2008-2010
PREFACE
2
ACKNOWLEDGEMENT
PRAVEEN KUMAR
MBA 2nd Semester
Rai Business School
Bhopal
3
CERTIFICATE
This to certify that Ms. PRAVEEN KUMAR,M.B.A II
Semester ,Rai Business School BHOPAL,Madurai
Kamaraj University has done project on “Reliance
Money “and has successfully completed his project on
“Reliance Mutual Fund “
This report is completed under my supervision .It is
only for academic purpose and is a bonafide work done
by researcher .
Project Guide
Mrs. Srishti Sharma
FACULTY
Rai Business School,BHOPAL
DECLARATION
4
I Priyanka Asati do here by declare that the project
work entitle on the “reliance mutual Fund in India”at
Bhopal is the original work done by me .
PRAVEEN KUMAR
MBA 2nd semester
Rai business School
Bhopal
CONTENTS
5
1. INTRODUCTION 8
2. COMPANY PROFILE 15
3. COMPETITORS OF RELIANCE MONEY 37
4. NEED FOR THE STUDY 39
5. OBJECTIVES OF THE STUDY 42
6. RESEARCH METHDOLOGY 43
7. DATA ANALYSIS AND INTERPRETATION 45
8. OBSERVATION 51
9. FINDINGS AND SUGGESTION 52
10.CONCLUSION 54
11.LIMITATION 55
12.BIBLIOGRAPHY 56
6
INTRODUCTION
INTRODUCTION
7
There are a lot of investment avenues available today in the
financial market for an investor with an invest able surplus.
He can invest in Bank Deposits, Corporate Debentures, and
Bonds where there is low risk but low return. He may
invest in Stock of companies where the risk is high and the
returns are also proportionately high. The recent trends in
the Stock Market have shown that an average retail investor
always lost with periodic bearish tends. People began
opting for portfolio managers with expertise in stock
markets who would invest on their behalf. Thus we had
wealth management services provided by many institutions.
However they proved too costly for a small investor. These
investors have found a good shelter with the mutual funds.
HISTORY
8
Unit Trust of India is the first Mutual Fund set up
under a separate act, UTI Act in 1963, and started its
operations in 1964 with the issue of units under the scheme
US-641. In 1978 UTI was delinked from the RBI and
Industrial Development Bank of India (IDBI) took over the
Regulatory and administrative control in place of RBI.
9
The second is the UTI Mutual Fund Ltd, sponsored by SBI,
PNB, BOB and LIC. It is registered with SEBI and
functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000
more than Rs.76,000 crores of assets under management
and with the setting up of a UTI Mutual Fund, conforming
to the SEBI Mutual Fund Regulations, and with recent
mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September,
2004, there were 29 funds, which manage assets of
Rs.153108 crores under 421 schemes.
10
Wide variety of Mutual Fund Schemes exist to cater to the
needs such as financial position, risk tolerance and return
expectations etc. The table below gives an overview into
the existing types of schemes in the Industry.
• By Structure
o Open - Ended Schemes
o Interval Schemes
• By Investment Objective
o Growth Schemes
o Income Schemes
o Balanced Schemes
• Other Schemes
o Tax Saving Schemes
o Special Schemes
Index Schemes
Sector Specfic
11
There are numerous benefits of investing in mutual funds
and one of the key reasons for its phenomenal success in
the developed markets like US and UK is the range of
benefits they offer, which are unmatched by most other
investment avenues.
Diversification
The nuclear weapon in your arsenal for your fight
against Risk. It simply means that you must spread your
investment across different securities (stocks, bonds,
money market instruments, real estate, fixed deposits etc.)
and different sectors (auto, textile, information technology
etc.).
Tax Benefits
Any income distributed after March 31, 2002 will be
subject to tax in the assessment of all Unit holders.
However, as a measure of concession to Unit holders of
open-ended equity-oriented funds, income distributions for
the year ending March 31, 2003, will be taxed at a
concessional rate of 10.5%.
Regulations
12
Securities Exchange Board of India (“SEBI”), the
mutual funds regulator has clearly defined rules, which
govern mutual funds. These rules relate to the formation,
administration and management of mutual funds and also
prescribe disclosure and accounting requirements. Such a
high level of regulation seeks to protect the interest of
investors
Affordability
13
• Reliance was the first fund house to launch sector
funds with flexibility to invest in a range of 0% to
100% in either equity or debt instruments.
14
COMPANY PROFILE OF
RELIANCE
15
RELIANCE INDUSTRIES LIMITED
16
commercial real estate. Reliance's international consulting
group contains several subsidiaries in energy, environment,
and natural resources consulting. A financial arm invests in
other businesses, primarily television stations.
17
Reliance Capital Group, L.P. constituted the
investment branch of the Reliance conglomerate.
In December 1989, Reliance Capital sold its investment,
Days Corporation, parent company of Days Inn of America,
the world's third-largest hotel chain; it had been purchased
in 1984.
18
"Growth has no limit at Reliance. I keep revising
my vision.
Only when you can dream it, you can do it."
19
fundschemes are managed byReliance Capital
AssetManagement LimitedRCAM), a subsidiary of
Reliance Capital Limited,which holds 93.37% ofthe paid-
up capitalof RCAM.
The company notchedup a healthy
growth ofRs. 16,354 crore(US$ 4.09 billion)in assets under
management in February2008 and helped propelthe total
industry-wideAUM to Rs. 565,459 crore (US$ 141.36
billion)(Source: indiainvestments.com). A sharp rise infixed
maturity plans (FMPs) and collection ofRs. 7000 crore
(US$ 1.75 billion) through newfund offers (NFOs) created
this surge. In AUrankings, Reliance continues to be in
thenumber one spot.
20
the fastest growing investment company in India so far. To
meet the erratic demand of the financial market, Reliance
Mutual Fund designed a distinct portfolio that is sure to
please potential investors. Reliance Capital Asset
Management Limited manages RMF.
Schemes
21
i. Debt/Income Scheme, and Sector Specific
Scheme.
23
Reliance is ranked 182nd in the FT Global 500 (up from
previous year’s 284th rank).
• PetroFed, an apex hydrocarbon industry association,
conferred the PetroFed 2007 awards in the categories
of “Refinery of the Year” and “Exploration &
Production - Company of the Year”.
• Brand Reliance was conferred the “Bronze Award” at
The Buzziest Brands Awards 2008, organized by
agencyfaqs!
• Institute of Economic Studies conferred the “Udyog
Ratna” award in October 2007 for contributions to the
industry.
• Chemtech Foundation conferred the “Hall of Fame” in
February 2008 for sterling contributions to the
industry.
• Chemtech Foundation conferred the “Outstanding
Achievement - Oil Refining” for work at the Jamnagar
Manufacturing Division.
Petroleum Federation of India conferred the “Refinery of
the Year Award - 2007” to Jamnagar Manufacturing
Division
24
HEALTH:-
25
• Hoshiarpur Manufacturing Division bagged the First
Prize in “Safety in Punjab”, organized by Punjab
Safety Council.
• Patalganga Manufacturing Division won the “Gold
Medal at CASHe (Change Agents for Safety, Health
and Environment) Conference”. It also won the III
Prize in Process Management category for
Presentation on Safety through Design in chemical
process industry in Petrosafe 2007 Conference.
• Kurkumbh Manufacturing Division won the
“Greentech Safety Award silver trophy” for
outstanding achievement in safety management in
chemical sector.
• Hazira Manufacturing Division received the “TERI
Corporate Environmental Award (Certificate of
Appreciation)” for PET recycling project.
26
• Patalganga Manufacturing Division won the “ASTD
(American Society for Training & Development)
Excellence in Practice Award” for innovative practice
titled Learning Function’s role as Business partner:
Empowering people with Knowledge to achieve
Business Goals.
Reliance won the CNBC TV-18 instituted Jobstreet.com
Jobseekers’ Employer of Choice Award.
Energy Excellence:-
27
• Hazira Manufacturing Division won the Government
of India Energy Conservation Award (2007) conferred
by the Bureau of energy efficiency and Ministry of
Power.
• Hazira Manufacturing Division was adjudged
“Excellent Energy Efficient Unit” at Energy Summit -
2007 by CII.
Vadodara Manufacturing Division received the CII
award for “Excellence in Energy Management - 2007” as
energy efficient unit. This division also received the 2nd
prize in “National Energy Conservation Award –2007”
from Bureau of Energy efficiency, Ministry of Power,
Government of India.
The Company’s manufacturing divisions at Vadodara and
Hazira were honoured with CII-National award for
excellence in water management - 2007 as water
efficient unit in “Within the fence” category.
Additionally, Hazira Manufacturing Division was
honoured as water efficient unit “Beyond the Fence”
category.
Quality:-
28
Manufacturing Division for Outstanding Performance
by Practicing Total Quality Management.
• “QUALTECH PRIZE 2007”, which recognizes
extraordinary results in improvement and innovation,
was won by Hazira Manufacturing Division for its
Small Group Activity Project.
• Vadodara Manufacturing Division’s Polypropylene-IV
(PP-IV) plant was conferred the “Spheripol Process
Operability Award-2006” for the highest operability
rate with an on stream factor 98.97% by M/s.
BASELL, Italy.
Allahabad Manufacturing Division won the “Excellent
Category Award” at National Convention of Quality
Circle (NCQC) - 07.
Six-Sigma:-
29
• Barabanki Manufacturing Division won the 3rd prize
in “All India Six Sigma case study contest 2008” for
the Case study on “Reduction of waste of Plant 2 from
16% to 8%”.
• Hoshiarpur Manufacturing Division won the 2nd prize
in “Six Sigma competition at National Level”
organized by ISI and Quality Council of India (in
manufacturing category), while Dhenkanal and
Barabanki Manufacturing Divisions won the 3rd prize.
Vadodara Manufacturing Division’s Six Sigma project
won the 1st prize as the “Best Six Sigma project” at
National level by CII.
30
• Reliance bagged the “Innovation Award at Tech
Converge 2007” for innovative developments in short-
cut fibres.
Hazira Manufacturing Division won the “Golden
Peacock Innovation Award - 2007” for its Cyclohexane
Recovery Process.
Information Technology:-
31
PRODUCT S : RELIANCE MONEY
32
Fund as its flagship schemes.Reliance Equity Opportunities
Fund is a schemewhich operates in the multi-cap/multi-
sectorsegment; Reliance Equity Fund is a long-shortfund,
Reliance Quant Plus Fund is a quant fund.Reliance offers
investments in banking, power,media, entertainment and
pharmaceuticals;Reliance Tax Saver Fund and Reliance
Equity-Linked Savings Fund – Series 1 are tax saving
schemes; an NRI-dedicated equity scheme is
tailored for non-resident Indians. RelianceRegular Savings
Fund is an asset-allocation fund with three options.Under
the debt and liquid categories, Reliancehas liquid funds,
liquid plus funds, income funds,an NRI-dedicated debt
fund, gilt funds, fixedmaturity plans and an interval fund.In
the hybrid category, Reliance Monthlyincome Plan is a
popular option
33
officers. Thisprodigious effort is supplemented by
thebrands’ captive network of 120 branch offices
and 30 financial centres. In the second prong, Reliance has
created a series of informationpacked presentations which
help dispel misinformationGroup.This mega business house
dominates this key area in the financial sector.Figures for
March 2008 show that it has emerged as the top Indian
mutual fund with average assets under management of Rs.
90,938 crore (US$ 22.73 billion) and an investor base of
over 6.6 million (Source:www.amfiindia.com).
Reliance’s mutual fund schemes are
managed by RelianceCapitalAssetManagementLimited
(RCAM), a subsidiary of Reliance Capital Limited,which
holds 93.37% of the paid-up capitalof RCAM.The
company notchedup a healthy growth ofRs. 16,354 crore
(US$ 4.09billion)inassetsunder management in
February2008 and helped propelthe total industry-
wideAUM to Rs. 565,459 crore(US$ 141.36 billion)
(Source: indiainvestments.com). A sharp rise infixed
maturity plans (FMPs)andcollection of Rs. 7000 crore (US$
1.75 billion) through new fund offers (NFOs) created this
surge. InAUMrankings, Reliance continues to be in
thenumber one spot.
34
in Reliance Mutual Fund;the investments comprised 16%
of the country’s entire mutual fund asset base.
Achievements
35
away with seven other scheme prizes – five of them being
outright winners – in the Gulf 2007 Lipper Awards.These
included the Fund House of the Year by Lipper GCC as
well asICRA Online and the Most Improved FundHouse
by Asia Asset Management.It also received the NDTV
Business Leadership Award 2007 in the mutual fund
category and runners’ up recognition as the Best Fund
House in theOutlook Money-NDTV Profit Awards. In
addition,the company received thecoveted CNBC Web18
Genius of the Web distinction for the Best Mutual Fund
Website inthe country. RCAM was awarded the India
Onshore Fund House 2008 instituted by theAsian Investor
magazine.The company also won the India Equities award
in the 5-yearPerformance category.
36
(DP) in the country with over 8 Lac demat accounts.
37
Change of address, Signature, Dividend Mandate,
registration of power of attorney, transmission etc. can be
effected across companies held in demat form by a single
instruction to the Depository Participant (DP).
1. Investment Account
Along with stock trading and IPO investing in BSE and NSE,
Wise Investment account also provide options to invest in
Mutual Funds and Bonds online.
38
Online Mutual funds investment allows investor to invest on-
line in around 19 Mutual Fund companies. ICICI Direct
offers various options while investing in Mutual Funds like
Purchase Mutual Fund, Redemption and switch between
different schemes, Systematic Investment plans, Systematic
withdrawal plan and transferring existing Mutual Funds in to
electronic mode. This account also provides facility to invest
in Government of India Bonds and ICICI Bank Tax
Saving Bonds.
ICICIDirect.com website is the primary tool to invest in
Mutual Funds, IPOs, Bonds and stock trading.
Reliance Money
Tax Saving funds Reliance Money:
Tax-saving funds (due to their equity-oriented
nature) are capable of clocking far superior returns their
assured return counterparts like National Savings
Certificate (NSC) and Public Provident Fund (PPF).
However investors must appreciate that the risk profile of
tax-saving funds tends to be proportionately higher.
Reliance Tax Saver (ELSS) Fund (RTSF) is the latest
entrant in the tax-saving funds segment. Flagship
diversified equity funds (Reliance Growth Fund and
Reliance Equity Fund) from Reliance Mutual Fund have
emerged as top performers in their segment across time
horizons. However investors should note that these funds
are managed aggressively; also they have displayed an
opportunistic streak by moving fluidly across market
segments (large caps, mid caps) to clock superior growth.
RTSF is likely to be a similar (high risk - high return)
39
investment proposition within the tax-saving funds
segment.
40
OBJECTIVE
41
Explore the recent developments in the mutual funds in
India
RESEARCH METHODOLOGY
42
Research as a care full investigation or enquiry specially
through search for a new facts in any branch of knowledge”
Research is an academic activity and such as the term
should be used in technical sense.The manipulation of
things , concepts or symbols for the purpose of
generalizing to extend ,correct or verify knowledge
,whether that knowledge through objective.
TYPES OF RESEARCH
ANALYTICAL RESERCH
43
Primary data: Primary data collect through observation ,or
through direct communication or doing experiments .
TOOLS OF ANALYSIS
44
Fund ?
25
20
15
10
0
Reliance HDFC ICICI
45
HDFC 21
ICICI 7
25
20
15
10
0
RELIANCE HDFC ICICI
INTERPRETATION:
44% respondent for Reliance,32 %forHdfc,14% for ICICI
46
ICICI 15
20
15
10
0
Reliance HDFC ICICI
INTERPRETATION:
40% respondent for Reliance,30 %forHdfc,30% for ICICI
47
Reliance 18
HDFC 16
ICICI 16
18
17.5
17
16.5
16
15.5
15
Reliance HDFC ICICI
INTERPRETATION:
36% respondent for Reliance,32%forHdfc,32% for ICICI
48
ICICI 13
25
20
15
10
0
Reliance HDFC ICICI
INTERPRETATION:
44% respondent for Reliance,30%forHdfc,26% for ICICI
Represent
ICICI
29%
by pie chart
Reliance
41%
HDFC
30%
49
OBSERVATION
50
40% respondent for Reliance,30 %forHdfc,30% for
ICICI.
51
open ended but reliance money manager is more beneficial
for reliance mutual fund .
SUGGESTION
52
• There should be provision of complain suggestion
boxes at each branch.
CONCLUSION
53
At last all con be concluded by that Reliance Money is still
growing industry in India and is still exploring its potential
and prospects in here.
Limitations
54
• The time constraint was one of the major problems.
• The study is limited to the different schemes available
under the mutual funds selected.
• The study is limited to selected mutual fund schemes.
• The lack of information sources for the analysis part.
BIBLIOGRAPHY
Websites:
www.reliancemoney.com
www.hdfc.com
www.icicidirect.com
Referencebooks:
•FINANCIAL INSTITUTIONS AND MARKETS -
55
L.M.BHOLE
•INVESTMENT MANAGEMENT - V.K.BHALLA
Research Methodology - Kothari
QUESTIONNAIR
Q.1 Which banking mutual fund do you prefer for mutual
Fund ?
• Reliance Money
• HDFC
• ICICI
56
• Reliance Money
• HDFC
• ICICI
57