A Report On<br />“Mutual Fund in India – Reliance Money”<br />Submitted By:<br />Amit Karnani<br />(+919001023073)<br />MBA II Semester,<br />(Batch 2008-10)<br />IPS, Jaipur. <br />Reliance Money<br />Table of Contents:<br />Acknowledgement3<br />Declaration4<br />List of Tables and Illustration5<br />Abbreviations6<br />Summary7<br />Introduction, History 8-10<br />Objective of Project11<br />Types of Mutual Fund Schemes in India12<br />Company Profile<br />Parent Company (Reliance ADAG)13<br />Reliance Money14-15<br />Partners of Company16<br />Products and Services17<br />Major Competitors18<br />Reliance Mutual Fund19-20<br />Types of Reliance MF19<br />Working of Mutual Fund21-22<br />Research Methodology23<br />Review of Literature24<br />Findings And Suggestion25<br />SWOT Analysis26<br />Conclusion27<br />Bibliography28<br />Questionnaire.29<br />ACKNOWLEDGEMENT<br />This report bears the imprint of many people. Right from the experienced staff of <br />Reliance Money, to the staff of _________________________________, without whose support and guidance I would have not got the unique opportunity to successfully complete my internship in this esteemed organization.<br />I take this opportunity to express my deep gratitude to all the employees of, Reliance Money, __________. Also I am indebted for the rich guidance, knowledge and suggestions provided by my guide, _____________ who took sincere efforts and illustrated the Marketing Concept of Financial Products, with their vast knowledge in the field, which helped me in carrying out my internship.<br />I am highly indebted to ______________ (Relationship Manager of Reliance project guide, who has provided me the necessary information and his good support in understanding the basics of the Reliance Money easily.<br />I am gratified to _____________ for their earnest coordination owing to which, I had the leg-up of undertaking the internship at the prominent organization, Reliance Money Pvt ltd.<br />Last but not least, I also thank all those people whom I met in the industry during my internship and helped me to accomplish my assignments in the most efficient and effective manner.<br />Amit Karnani,<br />IPS, Jaipur.<br />Batch 2008-10.<br />DECLARATION<br />I hereby declare that this Project Report entitled “Reliance Money – Mutual Fund”, submitted in the partial fulfillment of the requirement of Master of Business Administration (MBA) of IPS, The Business School, Jaipur is based on primary & secondary data found by me in various departments, books, magazines and websites & Collected by me in under guidance of __________.<br />Amit Karnani,<br />IPS, Jaipur.<br />Batch 2008-10.<br />List of Tables and Illustration:<br />Types of Mutual Funds12<br />Reliance ADAG Group Profile13<br />Reliance Money15<br />Partners of Reliance Money16<br />Types of Mutual Funds on the basis of Risk Vs Returns19<br />Comparison of Investment Schemes20<br />Working of a Mutual Fund21<br />Abbreviations:<br />NAV: Net Asset Value<br />MF:Mutual Fund<br />SIP:Systematic Investment Plan<br />UTI:Unit Trust of India<br />SEBI:Security and Exchange Board of India<br />SUMMARY<br />This project has been a great learning experience for me; at the same time it gave me enough scope to implement my analytical ability. This project as a whole can be divided into two parts:<br />The first part gives an insight about the mutual funds and its various aspects. It is purely based on whatever I learned at Reliance Money. One can have a brief knowledge about Mutual funds and all its basics through the project. Other than that the real servings come when one moves ahead. Some of the most interesting questions regarding mutual funds have been covered. Apart from Mutual Funds a light has also been through on Life Insurance Policies. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the data’s have been well analyzed with the help of charts and graphs.<br />The second part consists of data and their analysis, collected through a survey done on 200 people. It covers the topic” Awareness and Impact level among people about Mutual Funds and Life Insurance Policies”. The data collected has been well organized and presented. Hope the research findings and conclusions will be of use. It has also covered why people don’t want to go in invest? The advisors can take further steps to approach more and more people and indulge them for taking their advices.<br />INTRODUCTION<br />There are a lot of investment avenues available today in the financial market for an investor with 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 that 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.<br />Like most developed and developing countries the mutual fund cult has been catching on in India. The reasons for this interesting occurrence are:<br />Mutual funds make it easy and less costly for investors to satisfy their need for capital growth, income and/or income preservation.<br />Mutual fund brings the benefits of diversification and money management to the individual investor, providing an Opportunity for financial success that was once available only to a select few.<br />Mutual Funds: An Understanding:<br />Like most developed and developing countries the mutual fund cult has been catching on in India. There are various reasons for this. Mutual funds make it easy and less costly for investors to satisfy their need for capital growth, income and/or income preservation. And in addition to this a mutual fund brings the benefits of diversification and money management to the individual investor, providing an opportunity for financial success that was once available only to a select few.<br />Understanding Mutual funds is easy as it’s such a simple concept: a mutual fund is a company that pools the money of many investors—its shareholders—to invest in a variety of different securities. Investments may be in stocks, bonds, money market securities or some combination of these. Those securities are professionally managed on behalf of the shareholders, and each investor holds a pro rata share of the portfolio—entitled to any profits when the securities are sold, but subject to any losses in value as well.<br />For the individual investor, mutual funds provide the benefit of having someone else manage your investments and diversify your money over many different securities that may not be available or affordable to you otherwise. Today, minimum investment requirements on many funds are low enough that even the smallest investor can get started in mutual funds. A mutual fund, by its very nature, is diversified—its assets are invested in many different securities. Beyond that, there are many different types of mutual funds with different objectives and levels of growth potential, furthering your chances to diversify.<br />The Concept of Mutual Fund:<br />A mutual fund is a common pool of money into which investors place their contributions that are to be invested in accordance with a stated objective. The ownership of the fund is thus ‘joint’ and ‘mutual’; the fund belongs to all investors.<br />Mutual Fund Industry in India:<br />The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry. In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of 1,540 bn. Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking industry. The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian investors are yet to be intellectualized with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling. The mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under.<br /> <br />First Phase - 1964-87:<br />Unit Trust of India (UTI) was established on 1963 through an Act of Parliament, It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under management. <br />Second Phase - 1987-1993 (Entry of Public Sector Funds):<br />Entry of non-UTI mutual funds, SBI Mutual Fund was the first followed by could bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under management.<br />Third Phase - 1993-2003 (Entry of Private Sector Funds):<br />With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.<br />The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions, as at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds.<br />Fourth Phase - since February 2003:<br />This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores (as on January 2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund 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 AUM 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.<br />Mutual Fund Regulations:<br />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. <br /> Advantages Of Mutual Funds:<br />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.<br />Diversification:<br />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.).<br />Tax Benefits:<br />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 confessional rate of 10.5%.<br />Regulations:<br />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<br />Affordability:<br />A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment objective of the scheme. Azn investor can buy in to a portfolio of equities, which would otherwise be extremely expensive.<br />Objective of the Project:<br />To give a brief idea about the benefits available from mutual Fund investment.<br />To give an idea of the types of schemes available.<br />Explore the recent developments in the mutual funds in India.<br />To give an idea about the regulations of mutual funds.<br />To analyze reliance mutual fund strategy against its competitor.<br />Types Of Mutual Funds Scheme In India:<br />Wide variety of Mutual Fund Schemes exists 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.<br />By Structure:<br />Open - Ended Schemes,<br />Close - Ended Schemes,<br />Interval Schemes.<br />By Investment Objective:<br />Growth Schemes,<br />Income Schemes,<br />Balanced Schemes,<br />Money Market Schemes,<br />Other Schemes:<br />Tax Saving Schemes,<br />Special Schemes,<br />Index Schemes,<br />Sector Specific.<br />Company Profile:<br />Reliance ADAG Group:<br />Reliance Money:<br />Reliance money is a part of the reliance Anil Dhirubhai Ambani Group and is promoted by Reliance capital, the fastest growing private sector financial services company in India, ranked amongst the top 3 private sector financial companies in terms of net worth. Reliance money is a comprehensive financial solution provider that enables you to carry out trading and investment activities in a secure, cost-effective and convenient manner. Through reliance money, you can invest in a wide range of asset classes from Equity, Equity and commodity Derivatives, Mutual Funds, insurance products, IPO’s to availing services of Money Transfer & Money changing. Reliance Money offers the convenience of on-line and offline transactions through a variety of means, including its Portal, Call & Transact, Transaction Kiosks and at it’s network of affiliates.<br />“Success is a journey, not a destination.” If we look for examples to prove this quote then we can find many but there is none like that of Reliance Money, The company, which is today known as the largest financial service provider of India.<br />Success sutras of Reliance Money: <br />The success story of the company is driven by 9 success sutras adopted by it namely Trust, Integrity, Dedication, Commitment, Enterprise, Hard work, Home work, Team work play, Learning and Innovation, Empathy and Humility and last but not the least it’s the Network. These are the values that bind success with Reliance Money.<br />Vision of Reliance Money:<br />To achieve & sustain market leadership, Reliance Money shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world-class quality services. In the process Reliance Money shall strive to meet and exceed customer’s satisfaction and set industry standards.<br />Mission statement:<br />“Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising, and technology driven organization which will set the highest standards of service and business ethics.” <br />.<br />Products and Services:<br />Equity Reliance Money offers its clients competitively priced Equity broking, PMS and Portfolio Advisory Services. Trading execution assistance provided to clients. In addition Reliance Money provides independent and unbiased view on markets along with trading strategies and entry / exit points for taking an informed decision. <br />Mutual Funds:<br />A mutual fund is a professionally managed fund of collective investments that collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities. Reliance Money offers dedicated research & expert advice on Mutual Funds. Mutual funds are considered to have low risk factors owing to diversification of assets into various sectors and scripts or instruments within. <br />Insurance: <br />Life Insurance: Reliance Money assists its clients in choosing a customized plan, which will secure the family’s future and their expenses post-retirement. Clients can choose from different plans of almost all Insurance Companies where they can invest their money. Clients can choose from products and services that channel their savings and protect their needs while guaranteeing security and returns for life. A team of experts will suggest the best Insurance scheme, which suits the client’s requirement.<br />General Insurance: General Insurance is all about protecting against all kind of insurable risks. Reliance Money assists you in areas of Health insurance, Travel insurance, Home insurance and Motor insurance.<br />Commodities:<br />A single platform to trade on both the major commodity exchanges i.e. NCDEX and MCX. In addition In-house research desk shall provide research reports on all major commodities, which shall enable in getting views for trading and diversify client’s holdings. Trade Execution assistance is also provided to clients.<br />Structured Products:<br />Art Investments Structured Products is a new class of financial products for investors apprehensive of increased volatility in stock markets. Specially designed products could include Equity, Index-linked in nature, Real Estate Funds, Art Funds, Overseas Investments and Infrastructure Investments.<br />Tax Planning: With a view to provide complete wealth management solutions, Reliance Money’s wealth management offerings include tax related services like: Tax Planning & advisory Filing Tax returns for individuals.<br />Real Estate Advisory Services: Broking Model for lease/rent and buy/sell of property Valuation Real-estate Consulting – Corporate earnings model, Lease rentals, etc.<br />Offshore Investments:<br />Reliance Money provides a unique opportunity to invest in international financial markets through the online platform, which includes different product ranges. <br />Major Mutual Fund Companies in India:<br />ABN AMRO Mutual Fund,<br />Birla Sun Life Mutual Fund,<br />Bank of Baroda Mutual Fund (BOB Mutual Fund),<br />HDFC Mutual Fund,<br />HSBC Mutual Fund,<br />ING Vysya Mutual Fund,<br />Prudential ICICI Mutual Fund,<br />Sahara Mutual Fund,<br />State Bank of India Mutual Fund,<br />Tata Mutual Fund,<br />Kotak Mahindra Mutual Fund,<br />Unit Trust of India Mutual Fund,<br />Standard Chartered Mutual Fund,<br />Franklin Templeton India Mutual Fund,<br />Morgan Stanley Mutual Fund India,<br />Escorts Mutual Fund,<br />Alliance Capital Mutual Fund,<br />Benchmark Mutual Fund,<br />Canbank Mutual Fund,<br />Chola Mutual Fund,<br />LIC Mutual Fund,<br />GIC Mutual Fund.<br />Reliance Mutual Fund:<br />Reliance Mutual Fund (RMF), a part of the Reliance - Anil Dhirubhai Ambani Group, is India's leading Mutual Fund, with average Assets under Management of Rs. 90,813 crores for the month of June 2008, and an investor base of over 6.7 million. Reliance Mutual Fund offers investors a well-rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a presence in 300 cities across the country and constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd. <br />Types of Reliance Mutual Funds:<br />Reliance Growth Fund,<br />Reliance Vision Fund,<br />Reliance Banking Fund,<br />Reliance Diversified Power Sector Fund,<br />Reliance Pharma Fund,<br />Reliance Media & Entertainment Fund,<br />Reliance NRI Equity Fund,<br />Reliance Equity opportunities Fund,<br />Reliance Index Fund,<br />Reliance Tax Saver (ELSS) Fund,<br />Reliance Equity Fund,<br />Reliance Long Term Equity Fund,<br />Reliance Regular Saving Fund.<br />There are two types of investment in Mutual Funds:<br />Lump Sum,<br />Systematic Investment Plan (SIP).<br />Lump sum: <br />In Lump sum the investment is only one times that is of Rs. 5,000, and if the investment is monthly then the investment will be 6,000/-. <br />Systematic Investment Plan (SIP):<br />We have already mentioned about SIPs in brief in the previous pages but now going into details, we will see how the power of compounding could benefit us. In such case, every small amounts invested regularly can grow substantially. SIP gives a clear picture of how an early and regular investment can help the investor in wealth creation. Due to its unlimited advantages SIP could be redefined as “a methodology of fund investing regularly to benefit regularly from the stock market volatility. In the later sections we will see how returns generated from some of the SIPs have outperformed their benchmark. <br />Working of a Mutual Fund:<br />Advantages of Mutual Funds:<br />Diversification: The best mutual funds design their portfolios so individual investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value.<br />Professional Management: Most mutual funds pay topflight professionals to manage their investments. These managers decide what securities the fund will buy and sell.<br />Regulatory oversight: Mutual funds are subject to many government regulations that protect investors from fraud.<br />Liquidity: It's easy to get your money out of a mutual fund. Write a check, make a call, and you've got the cash.<br />Convenience: You can usually buy mutual fund shares by mail, phone, or over the Internet.<br />Low cost: Mutual fund expenses are often no more than 1.5 percent of your investment. Expenses for Index Funds are less than that, because index funds are not actively managed. Instead, they automatically buy stock in companies that are listed on a specific index.<br />Transparency,<br />Flexibility,<br />Choice of schemes,<br />Tax benefits,<br />Well regulated.<br />Drawbacks of Mutual Funds:<br />Mutual funds have their drawbacks and may not be for everyone:<br />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.<br />Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge sales commissions or "
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.<br />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. <br />Achievements:<br />In two successive joint surveys by The Economic Times’ Brand Equity and AC Nielsen, Reliance was recognized as India’s Most Trusted Mutual Fund. The company also walked 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 as ICRA Online and the Most Improved Fund House 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 the Outlook Money-NDTV Profit Awards. In addition, the company received the coveted CNBC Web18 Genius of the Web distinction for the Best Mutual Fund Website in the country. RCAM was awarded the India Onshore Fund House 2008 instituted by the Asian Investor magazine. The company also won the India Equities award in the 5-yearPerformance categories.<br />Research Methodology:<br />Objective of research: <br />The main objective of this project is concerned with getting the opinion of people regarding Mutual Funds, to target them and create awareness while with the generation of leads.<br />I have tried to explore the general opinion about Mutual Funds. It also covers why/ why not investors are availing the services of financial advisors.<br />Along with it a brief introduction to India’s largest financial intermediary, RELIANCE MONEY has been given and it is shown that what are mutual funds and life insurance and how they work <br />Scope of the study:<br />The research was carried on in the Southern Region of India. It is restricted to Hyderabad. I have visited people randomly nearby my locality, different shopping malls, small retailers etc.<br />Data sources:<br />Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and interacting with various people has collected primary data. The secondary data has been collected through various journals and websites and some special publications of R-MONEY. <br />Review of Literature:<br />This very journal is basically an interview, which is done by Patrick Crogan to Samuel Weber. The title is Targeting, Television and Networking: An Interview with Samuel Weber. Here a light is thrown on various aspects by the interviewee on the targeting, media and networking. According to him; the ‘target’ is someone who doesn’t fit the usual criteria. So one don’t have the same kind of search procedures as in the normal hiring process.<br />The target of opportunity can be a function of affirmative action policy or be somebody whose qualifications are unusual enough that one would not find them with a regular search process following criteria peculiar to an individual discipline. On the one hand the association of targeting with the aim of controlling the future, controlling the environment by identifying a target, localizing it and hitting it or reaching it, depending on what area a person is in, and on the other hand the notion of opportunity, which suggests the unpredictable emergence of an event that can’t be entirely planned. The coupling of the two terms suggests that targeting, rather than just designating an abstract activity in which, unencumbered by constraints of time and space, he identify something that he/she wants to accomplish or goals to be reach and then everything is done to achieve that, involves responding in a very determinate situation spatially and temporally to an unpredicted, unforeseen event, trying to get that event in some sense under control. <br />The word ‘opportunity’ itself is interesting because it already condenses this idea of the unpredictable, singular event being turned into an occasion to do something else. An opportunity means precisely to be able to do something with the event. Quite literally, the word suggests a portal, op-port-unity; a gateway through which one can pass into another domain. The latter can be construed as a realm of goals, and then the opportunity is instrumental zed, like the target. But it can also suggest an area that may not be definable strictly or primarily in terms of goals, aims or ends. In the latter case, you can’t be absolutely sure that you are going to be able to reach your target or even that there is one. So you have this tension between the two terms, target and opportunity.<br />In the financial domain as well, where the maximization of profit in the short term takes precedence over all other considerations and has come to undermine the very foundations of the capitalist economy that produced it in the first place. The current financial crisis deriving from the use of ‘sub prime mortgages’ is an excellent example of this tendency. Targeting in this sense seeks to eliminate the uncertainties of time by considering it primarily as ‘short term’ and thus as amenable to the accomplishment of certain goals, the maximization of profit primarily, without worrying about what comes next. One reaction to this is the growth of ecological concerns, about ‘sustainable’ growth, but these are then quickly exploited by the very same system dominated by finance capital and short-term profit maximization. Overall, the journal speaks about concept of targeting and opportunities in common. Though the real methodology is not been specified to do targeting but the concepts it has discussed are really helpful for one who wants to do a project on targeting. <br />Findings and Suggestion:<br />In Equity Schemes we have taken Reliance Vision Fund and Reliance growth Fund. Both schemes are open ended but Reliance Growth fund is more valuable for Reliance Mutual Fund than reliance vision Fund.<br />In Debt scheme we have taken Reliance money Manager Fund and Reliance Liquidity Fund .In it both schemes are open ended but reliance money manager is more beneficial for reliance mutual fund.<br />In sector specific scheme we have taken Reliance media and entertainment fund and Reliance Pharma fund scheme <br />Both are more efficient for Reliance Mutual Fund.<br />Above all the schemes of Reliance Mutual Fund Debt schemes are best schemes for Mutual Fund.<br />There is a Good investment plan and saving scheme in reliance Mutual Fund.<br />Suggestion:<br />The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. Mutual funds and Insurance policies offer a lot of benefit, which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is and moreover they are still unaware of the combination of Mutual Fund + Insurance Policy, i.e. SIP+INSURE PLAN. They only see it as just another investment option. So the advisors should try to change their mindsets.<br />The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. The advisors may try to highlight some of the value added benefits of MFs such as tax benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these benefits are not offered by other options single handedly. So these are enough to drive the investors towards mutual funds. Investors could also try to increase the spectrum of services offered. Now the most important reason for not availing the services of advisors was spotted was being expensive.<br />The advisors should try to charge a nominal fee at the beginning. But if not possible then they could go for offering more services and benefits at the existing rate. They should also maintain their decency and follow the code of ethics so that the investors could trust upon them. Thus the advisors should try to attract more and more persons and turn them into investors and finally their clients. <br />SWOT Analysis:<br />Strength: <br />_____________________________,<br />_____________________________,<br />_____________________________,<br />_____________________________.<br />Weakness: <br />_____________________________,<br />_____________________________,<br />_____________________________,<br />_____________________________.<br />Opportunities:<br />_____________________________,<br />_____________________________,<br />_____________________________,<br />_____________________________.<br />Threads:<br />_____________________________,<br />_____________________________,<br />_____________________________,<br />_____________________________.<br />Conclusion:<br />Mutual Fund investment is better than other raising fund. Reliance Mutual Fund has good returns in investment. Good brand is always welcomed over here people are more aware and conscious for the brand so they go for they are ready to spend some extra bucks for the quality. 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.<br />Bibliography:<br />www.reliancemoney.com,<br />www.reliancecapital.co.in,<br />www.relianceadaggroup.com,<br />www.mutualfundsindia.com,<br />www.amfindia.com,<br />www.investopedia.com,<br />www.wikipedia.org,<br />www.reliancemoney.co.in,<br />www.google.com. <br />Questionnaire:<br />Have you invested /are you interested to invest in mutual funds or to take an Insurance policy?<br />Yes<br />No<br />What is the most important reason for not investing in mutual funds and in Insurance policies?<br />Lack of knowledge about mutual funds/insurance,<br />Enjoys investing in other options,<br />Its benefits are not enough to drive you for investment,<br />No trust over the fund managers.<br />Where do you find yourself as a mutual fund investor/an insurance policy owner?<br />Totally ignorant,<br />Partial knowledge of mutual funds,<br />Aware only of any specific scheme in which you invested,<br />Fully aware.<br />Where from you purchase mutual funds/insurance policy?<br />Directly from the AMCs,<br />Brokers only,<br />Brokers/ sub-brokers,<br />Other sources.<br />Which feature of the mutual funds allures you most?<br />Diversification,<br />Professional management,<br />Reduction in risk and transaction cost,<br />Helps in achieving long-term goals.<br />According to you, which is the most suitable stage to invest in mutual funds/take an Insurance policy?<br />Young unmarried stage,<br />Young Married with children stage,<br />Married with older children stage,<br />Pre-retirement stage.<br />