Project report on relaince mutual funds


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Project report on relaince mutual funds

  1. 1. PROJECT REPORT ON RELIANCE MUTUAL FUNDS Supervised by- Submitted to- Ms. Preeti Kaushal Himanshu Kinra
  2. 2. INTRODUCTION • The Reliance group largest business houses with revenues of Rs. 990 billion ($22.6 billion) that is equal to 3.5% of GDP • The group – which claims to contribute nearly 10 per cent of the country’s indirect tax revenues and over six percent of India’s exports. • The group’s activities span exploration, production, refining and marketing of oil and natural gas, petrochemicals, textiles, financial services, insurance, power and telecom.
  3. 3. Reliance Anil Dhirubhai Ambani Group Structure
  4. 4. INDUSTRY PROFILE The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the Industry. In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise.
  5. 5. Contd..  Before monopoly AUM is 67 billion  Private sector entry in march1993 leads to increase upto470billion and 1540 billion till2004  1st Phase(1964-1987) first scheme is Unit scheme1964 and till 1987 UTI has6700 crore AUM.  2nd Phase(1988-1993) entry of public sector LIC,SBI,GIC,BOI and till 1993 UTI has47004 crore AUM.  3rd Phase(1994-2004)entry of private sector KOTHARI PIONEER now Franklin Templeton at the end of 2003 UTI has 1,21,805 crore AUM  4th Phase(since feb2003 till today) two entities one is UTI broadly assets US64 AUM is 29,835 at the end of2003 second is registered with SEBI at the end of sept2004 AUM is 153108 crore with29funds and421 schemes.
  6. 6. COMPANY PROFILE Reliance Capital Ltd.  RCL incorporated in 1986 in Gujarat as Reliance capital& finance trust limited. RCL come into effect in jan1995.  In 2006, Reliance Capital Ventures Limited merged with RCL with this shareholder base move to 1.3million from 0.15million.  Presently the shares are listed on The Stock Exchange Mumbai and the National Stock Exchange of India.  RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of India (SEBI). It had lead managed/co-managed 15 issues of an aggregate value of Rs. 400 crore and had underwritten 33 issues for an aggregate value of Rs. 550 crore.
  7. 7. About Reliance Mutual Fund • Reliance Mutual Fund is one of India’s leading Mutual Funds,with(AAUM)of Rs. 1,00,000 Crores and an investor count of over 58.42 and 64.53 Lakh folios. (AAUM and investor count as of jan13) . • RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 179 cities across the country.
  8. 8. About Reliance Mutual Fund • Reliance Capital Asset Management Limited is the asset manager of Reliance Mutual Fund. • RCAM is a subsidiary of Reliance Capital Limited (RCL). • Presently, RCL holds 65.23% of its total issued and paid-up equity share capital and the balance of its issued and paid up equity share capital is held by other shareholders. • NLI acquired the said 26% share holding in RCAM on August 17, 2012.
  9. 9. Vision & Mission Vision To be a globally respected wealth creator with an emphasis on customer care and a culture of good corporate governance. Mission To create and nurture a world-class, high performance environment aimed at delighting our customers.
  10. 10. SWOT ANALYSIS STRENGTHS • Brand strategy: As opposed to some of its competitors (e.g. HSBC), Reliance ADAG operates a multi-brand strategy. The company operates under numerous well-known brand names, which allows the company to appeal to many different segments of the market. • Distribution channel strategy: Reliance is continuously improving the distribution of its products. Its online and Internet-based access offers a combination of excellent growth prospects and its retail direct business also growing on a good pace • Various sources of income: Reliance has many sources of income throughout the group and this diversity within the group makes the company more flexible..
  11. 11. SWOT ANALYSIS  Weakness • Emerging markets: since there is more investment demand in the United States, Japan and the rest of Asia, Reliance should concentrate on these markets, especially in view of low global interest rates. • Mutual funds are like many other investments without a guaranteed return: there is always he possibility that the value of your mutual fund will depreciate. • Fees: In mutual funds, the fees are classified into two categories: shareholder fees and annual operating fees. The shareholder fees are paid directly by shareholders purchasing or selling the funds.The Annual fund operating fees are charged as an annual percentage - usually ranging from 1-3%in years when the fund doesn't make money, these fees only magnify losses.
  12. 12. SWOT ANALYSIS  OPPORTUNITIES • Potential markets: The Indian rural market has great potential. All the major market lenders consider the segments and real markets for their products. • Entry of MNCs: Due to multinationals are entering into market job opportunities are increasing day by day. Also India Mutual Fund majors are tie up with other financial institutions.
  13. 13. SWOT ANALYSIS  THREATS Increased Competition: With intense competition by so many local players causing headache to the current marketers. In addition to this though multinational brands are not yet established but still they will soon hit the mark.
  15. 15. OBJECTIVES OF THE STUDY: • To understand the Functions of an Asset Management Company • To understand the performances of various schemes using various tools to measure the performances. • To discuss about the market trends of top debt &equity funds. • To study top debt and equity mutual funds scheme and analyse them. • Explore the recent developments in mutual funds.
  16. 16. METHODOLOGY:  Data collection: • The data required for the study may be collected either from primary sources or from secondary sources. A major portion of the data in this study has been collected through secondary sources of data.  Secondary data: • Published material and annual reports of mutual fund companies • Other published material of mutual funds.  Primary data: • Data collected from Bank employees, Employees from different AMC and random people selected for that a subset of 100 people has been taken and from 83pepole have invested in mutual funds so just a basic analysis from the data collected.  Sample Profile: • The sample required for the study has been selected through random sampling method from the available list of mutual fund schemes in the market. Broadly the sample of 6 mutual fund schemes includes equity funds, debt funds.
  17. 17. ANALYSIS OF QUESTIONARRE Data collected from Bank employees, Employees from different AMC and random people selected for that a subset of 100 people has been taken and from 83 people have invested in mutual funds so just a basic analysis from the data collected.
  18. 18. 1. What kind of investment do you prefer? The first question was about the investment preferences of the investors that what kind of investment they prefer they were asked to tick more than one if they prefer to do so. The number of investors covered in the research was 100 and the responses given in this question was 122. 0 10 20 30 40 50 Series1
  19. 19. For this question multiple responses were recorded from each investor and then the total responses were analysed. The total number of responses was 122 and the total number of investors was 100. On the bases of these responses the most popular was Real estate now a days people showing more interest in this sector  Then the post office is traditional investment and now a days  The mutual funds came on 3rd number when it comes to number of responses.  Gold is also much more preferable than the other investments and was the 4th popular tool.  The least preferred tool of investment was shares and debentures.  Insurance which is also a necessity when it comes to investment was on 5th number on the basis of responses given.
  20. 20. 2. What are the factors that affect your investment? In this question investors were asked to rank the factors from 1 to 5 as 5 being the most preferred and 1 being the lowest preferred. These factors were also analyzed on the basis of average rating to see that factor comes first when it comes to ratings. The results of that are given below in the table.
  21. 21. RISK 42 TAX BENEFITS 10 RETURNS 24 LIQUIDITY 14 AVAILABILITY OF FUNDS 10 0 5 10 15 20 25 30 35 40 45 Series1
  22. 22. Have you ever invested in mutual funds ? The third question was asked to know whether the investors have ever invested in mutual funds or not . This question was asked to know about how many of them mutual fund investors are. Yes, I invest regularly in mutual funds 29 I invested once or twice. 30 NO, I never invested in mutual funds 41 The results of this question are given below:
  23. 23. Yes, I invest regularly in mutual funds 29% I invested once or twice. 30% NO, I never invested in mutual funds 41% Chart TitleOut of the 100 investors 29 were mutual fund investors and were investing regularly in mutual funds. Among those 100 investors 30 were those who have invested once or twice but are not regular mutual fund investors. There were 41 investors who never invested in mutual funds. They were investing in other types of investment tools but were not investing in mutual funds.
  24. 24. How well do you understand the mutual fund markets and investments? The investors in this question were asked about their understanding of mutual fund markets and investments. The data below shows the results No. Percentage I don’t understand markets at all 22 22% I have basic understanding 29 29% I am an amateur investor 25 25% I am an experienced investor 24 24%
  25. 25. I don’t understand markets at all 22% I have basic understanding 29% I am an amateur investor 25% I am an experienced investor 24% Chart Title  About 22% of investors said they don’t have any knowledge of the markets and they don’t understand markets at all.  Only 24% of them said that they have an good knowledge of the market and are experienced investors.  The maximum percentage was of the investors who said that they have an basic or entry level knowledge of the market.  On the other hand 25% of them said that they have average knowledge about the mutual fund investments and have invested earlier.
  26. 26. How do you invest in mutual funds? Mutual investments have many ways to invest in them that can be SIP i.e. systematic investment plan or lump sum amount at any time or irregular investments. This question was asked to know about the investing pattern of those 82 investors who earlier said that they have invested in mutual funds and the results are given below Investments No. %age One time 35 43% SIP 19 23% Irregular investments 16 19% Invest whenever I have surplus 12 15%
  27. 27. One time 43% SIP 23% Irregular investments 19% Invest whenever I have surplus 15% Chart Title
  28. 28. Have you ever invested in any of these schemes given below of reliance mutual funds? In this question asked from people about the top six schemes of RMF have they invested in these schemes or not the results are given below on table. Reliance equity opportunity fund 14 Reliance growth 2 Reliance banking fund 22 RRSF(EQUITY) 1 RRSF (DEBT) 20 Reliance dynamic bond 18
  29. 29. Reliance equity opportunity fund 18% Reliance growth 3% Reliance banking fund 29% RRSF(EQUITY) 1% RRSF (DEBT) 26% Reliance dynamic bond 23% Chart Title  A total of77 people knows about these schemes of RMF  Almost50% of people knows about the equity scheme of reliance mutual funds and among those schemes RELIANCE BANKING FUND is more popular and after that RELIANCE equity opportunity is popular  In case of debt both schemes are good in their own places as almost almost25% people knows about these schemes and some of them are well known to these schemes  Many a people around 60 of all d people knows about both the scheme but they don’t have much knowledge about it
  30. 30. What was the reason behind investing in these schemes..?? This is asked just to know their view what are they expectation from schemes or from this sector. The results are shown below in a table Growth 20 Capital appreciation 60 Tax saving 20 Beating inflation 0
  31. 31. Growth 20% Capital appreciation 60% Tax saving 20% Beating inflation 0% Chart Title  Most of the people want capital appreciation almost 60% they took it as 1st preference ans rest are on same side.  For employed persons tax saving is main motive got a response of 40% main motive as investments.  Rest is growth and they keep on investing again and again.  Actually these results shows that people hav more aware about AMC but their only motive is to earn as much as you can
  32. 32. How did you came to know about these schemes? This question is put just to know where Reliance is lacking either in advertising their funds being the country best player in mutual fund industry still people know less about them and how banks play a vital role in it. The results are as follows in table Newspaper Advertisment 12 Sales representative Banking sector 85 Friends & Family 3
  33. 33. Newspaper 0% Advertisment 12% Sales representative 0% Banking sector 85% Friends & Family 3% Chart TitleInvesting in mutual funds always influenced by banking sector and it can be seen through this survey also almost 85% of people influenced by banks. Remaining15% is effected advertisement in newspaper or through electronic media. Sales representative hardly makes any difference in sales of mutual funds it’s all due to lack of confidence in mutual fund market in people.
  35. 35. During the period of almost 11 weeks Many activities done details are as follows: • SIP DRIVES. • PUBLIC DEALING SELLLING SIP • GENRATING LEAD FOR RELIANCE • VISITNG DEACTIVATED BRANCH • RELATIONSHIP MANAGEMENT
  36. 36. Contd..  SIP DRIVES: I went to many branches and covered almost whole Tricity and organized sip drives with different banks such as yes bank, axis bank, icici banks each sip drive is of one week and in this we had to visit that branch and meeting their RM and providing them all the needed documents and providing them their incentive schemes for motivating them to sell more and more and stay there for whole day and helping n influencing customers to go for reliance sip.  PUBLIC DEALING SELLING SIP: in the beginning of my internship I visited many public sector units banks (PSU) and stayed there for whole day in different banks of Chandigarh in different sectors and personally met customers and influence them and sell sip to them by giving detail to them about the fund and reliance and providing them their incentive schemes for motivating them to sell more and more. Public dealing is little difficult as it’s very difficult to influence any person to invest a little money with us but of all the work I did this one is most interesting and knowledge gaining too.
  37. 37. Contd…  VISITNG DEACTIVATED BRANCHES: during the mid of my internship I visited many branches which is like deactivated for reliance as no business from their side or you can a low business branches of different banks at different locations and I visited them too and met Branch manager their and provided them details needed and documents for sip application form and I visited them frequently or whenever they give a call for any work related to sip.  RELATIONSHIP MANAGAMENT: during my whole internship the main thing I have to focus on is sale and relation management as maintaining good relations with different bank managers and their RM so that they give importance reliance sip and gives more and more business to us and keep this in mind I visited many branches of different private and public banks and provide them needed documents and my availability any time.
  38. 38. Contd..  LEAD GENERATION: This is what I did in my last phase of internship a project is given to me to visit all the Chandigarh based companies in whole Tricity (Chandigarh, Mohali, Zirakpur) and collect the data of their owner and different details which can help us in contacting them the main aim is to collect data for reliance to catch/pitch people with more liquid funds and those who can invest in Reliance mutual fund. In Chandigarh I visited sec34 companies almost almost35companies there and Industrial area-I Industrial area-II all the companies here in like all the dealerships of automobile sector and other companies which are owned by Chandigarh based owners. List of companies visited (excel sheet) and dairy too…!!!
  39. 39. Contd..!!!  TOTAL NO OF BANKS VISITED:45 • ICICI BANK • AXIS BANK • YES BANK • CENTRAL BANK • SOUTH INDIAN BANK • FEDRAL BANK Location:- Chandigarh,Zirakpur,Baltana,Panchkula, Derabassi Mohali, TOTAL NO OF COMPANIES VISITED FOR GENERATING LEAD: :120+ Location:- Chandigarh sec-34,Chandigarh Ind-I Chandigarh-Ind II,DLF IT Park,Mohali PH- VII, Mohali-VIII, Quarkcity(MOHALI)
  40. 40. Conclusion  Reliance mutual fund is the best EQUITY and DEBT fund in India as it has topped in the 5 parameters which are chosen for the purpose of evaluation.  Dynamic bond fund and Reliance Equity Opportunities fund both are at second place.
  41. 41. Start Early Invest Regularly Invest Long-Term KEY to success? Its not the timing but the time in the market which matters
  42. 42. Thank You...