Market research of Reliance Mutual Funds

1. INTRODUCTION OF THE COMPANY
RELIANCE INDUSTRIES LIMITED
Reliance Group Holdings has grown from a small office data-processing equipment
firm in 1961 into a major insurance and financial-services group in one generation under one
chief. Reliance's insurance operations constitute the nation's 27th-largest property and
casualty operation. The parent company also includes a development subsidiary in
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.
Reliance Insurance started as the Fire Association of Philadelphia in 1817, organized
by 5 hose and 11 engine fire companies. It became the nation's first association of volunteer
fire departments. Business got a boost as a result of the Great Chicago Fire of 1871.The
association soon developed a field of agents to write policies across the country. For the first
two years, shareholders received dividends twice a year of $5 a share, which increased
gradually to $10 in 1876.
In 1972, the Reliance insurance group divided its pool so that Reliance Insurance
Company and its subsidiaries handled most standard lines, while United Pacific Insurance
Company handled the nonstandard and other operations.
In 1977, the company moved into real estate, forming Continental Cities Corporation,
which became Reliance Development Group, Inc. This division handled all real estate
operations of the parent company and other subsidiaries.
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. Reliance Industries Limited. The Group's principal activity is to produce
and distribute plastic and intermediates, polyester filament yarn, fibre intermediates, polymer
intermediates, crackers, chemicals, textiles, oil and gas. The refining segment includes
production and marketing operations of the Petroleum refinery. The petrochemicals segment
includes production and marketing operations of petrochemical products namely, High and
Low density Polyethylene.

2. "Growth has no limit at Reliance. I keep revising my vision.
Only when you can dream it, you can do it."
Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a
global leader in the materials and energy value chain businesses. He is credited to have
brought about the equity cult in India in the late seventies and is regarded as an icon for
enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'. The Reliance
Group is a living testimony to his indomitable will, single-minded dedication and an
unrelenting commitment to his goals.
RELIANCE MUTUAL FUND
This group dominates this key area in the financial sector. This mega business houses
show that it has assets under management of Rs.90,938 crore (US$ 22.73 billion) and an
investor base of over6.6 million (Source:www.amfiindia.com). Reliance’s mutual fund
schemes are managed by Reliance Capital Asset Management Limited (RCAM), a subsidiary
of Reliance Capital Limited, which holds 93.37% of the paid up capital of RCAM.
The company notchedup a healthy growth of Rs.16,354 crore (US$ 4.09 billion) in
assets under management in February2008 and helped propel the total industry-wide AUM 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 new fund
offers (NFOs) created this surge. Reliance continues to be in the number one spot. India's
Best Offering: Reliance Mutual Fund Investing has become global. Today, a lot of countries
are waking up to the reality that in order to gain financial growth, they must encourage their
citizens to not only save but also invest. Mutual funds are fast becoming the mode of
investment in the world. In India, a mutual fund company called the Reliance Mutual Fund is
making waves. Reliance is considered India's best when it comes to mutual funds. Its
investors number to 4.6 billion people. Reliance Capital Asset Management Limited ranks in

3. the top 3 of India's banking companies and financial sector in terms of net value. The Anil
Dhirubhai Ambani Group owns Reliance; they are 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. Vision And Mission Reliance Mutual Fund is
so popular because it is investor focused. They show their dedication by continually dishing
out innovative offerings and unparalleled service initiatives. It is their goal to become
respected globally for helping people achieve their financial dreams through excellent
organization governance and customer care.
Reliance Mutual fund wants a high performance environment that is geared at making
investors happy. RMF aims to do business lawfully and without stepping on other people.
They want to be able to create portfolios that will ensure the liquidity of the investment of
people in India as well as abroad. Reliance Mutual Fund also wants to make sure that their
shareholders realize reasonable profit, by deploying funds wisely. Taking appropriate risks to
reach the company's potential is also one of Reliance Mutual Fund's objectives.
SCHEMES
To make their packages more attractive, Reliance Mutual Fund created proposals
called The Equity/ Growth scheme, Debt/Income Scheme, and Sector Specific Scheme. i.
Debt/Income Scheme, and Sector Specific Scheme. The Equity/ Growth scheme give
medium to long term capital increase. The major part of the investment is on equities and
they have fairly high risks. The scheme gives the investors varying options like, capital
augmentation or dividend preference. The choices are not deadlocked because if you want
you may change the options later on. Providing steady and regular income is one of the
Debt/Income Scheme's primary goals. The Debt/Income scheme has in its portfolio
government securities, corporate debentures fixed income securities, and bonds. returns on
Sector Specific Scheme are dependent on the performance of the industry at which your
money is invested upon. Compared to diversified funds this is a lot more risky and you will
need to really give your time on observing the market.

4. Although RMF is gaining good ground in the financial market, remember that they
are a risk taking bunch. They give higher profit because they take a lot of risks. So, if you are
faint hearted, then Reliance Mutual Fund is not for you.
GROWTH OF RELIANCE MONEY THROUGH RECOGNITION
Growth through Recognition Reliance has merited a series of awards and recognitions
for excellence for businesses and operations. Corporate Ranking and Ratings:
• Reliance featured in the Fortune Global 500 list of ‘World’s Largest Corporations’ for
the fourth consecutive year.
• Ranked 269th in 2007 having moved up 73 places from the previous year.
• Featured as one of the world’s Top 200 companies in terms of Profits.
• Among the top 25 climbers for two years in a row.
• Featured among top 50 companies with the biggest increase in Revenues.
• Ranked 26th within the refining industry.
• 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

5. • “The Plastics Export Promotion Council - PLEXCOUNCIL Export Award” in the
category of Plastic Polymers for the year 2006-2007 was awarded to Reliance being the
largest exporter in this category.
HEALTH:-
• Jamnagar Manufacturing Division was conferred the “Golden Peacock Award for
Occupational Health & Safety - 2007” by Institute of Directors.
• Jamnagar Manufacturing Division was conferred the “ICC Award for Water Resource
Management in Chemical Industry”.
• Jamnagar Manufacturing Division was conferred the “Good House Keeping Award”
from Baroda Productivity Council.
• Jamnagar Manufacturing Division was conferred the “BEL-IND” Award for the best
scientific paper at the 58th National Conference of Occupational Health.
• Naroda Manufacturing Division was conferred the “Safety Award and Certificate of
Appreciation” presented by Gujarat Safety Council & Directorate of Industrial Safety &
Health, Gujarat State for the recognition of safety performance at the 29th State Level
Annual Safety Conference.
• Dahej Manufacturing Division received “BSC 5-Star” rating from British Safety
Council, UK.
• Dhenkanal Manufacturing Division received the “2nd Prize for Longest Accident Free
Period” from the Hon’ble Minister of Labour, State of Orissa. 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.

6. • Hazira Manufacturing Division received the “TERI Corporate Environmental Award
(Certificate of Appreciation)” for PET recycling project. Nagothane Manufacturing
Division received the “Shrishti G-Cube Award for Good Green Governance” from
Minister for Commerce and Industry, on World Earth Day.

7. QUALITY:-
• For the first time ever, globally, a petrochemical company bagged the “Deming Prize
for Management Quality”. “The Quality Control Award for Operations Business Unit
2007” was awarded to the Hazira 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:-
• Lean Six sigma project on “Reducing retention time of caustic soda lye tankers at
Jamnagar” won the 1st prize in the national level competition held by Indian Statistical
Institute (ISI).
• Patalganga Manufacturing Division’s Six Sigma Project on Improve Transfer
Efficiency for Automatic winders in PFY won the 2nd Prize for “Best design for Six
Sigma Project in International Six Sigma Competition” organized by IQPC (International
Quality and Productivity center).
• 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.

8. PRODUCT S : RELIANCE MONEY
The products on offer from Reliance Mutual Fund fall into four main categories:
equity, debt, sector specific and ETF (Exchange Traded Fund).Each taps into a specific
audience profile fulfilling their varying needs. Under the equity category, Reliance has118
SUPERBRANDS sixteen schemes with Reliance Growth Fund and Reliance Vision Fund as
its flagship schemes. Reliance Equity Opportunities Fund is a scheme which operates in the
multi-cap/multi sector segment; Reliance Equity Fund is a long-short fund, 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. Reliance Regular Savings Fund is an asset-allocation fund with
three options. Under the debt and liquid categories, Reliance has liquid funds, liquid plus
funds, income funds, an NRI-dedicated debt fund, gilt funds, fixed maturity plans and an
interval fund. In the hybrid category, Reliance Monthly income Plan is a popular option
Reliance understands that investments in mutual fund share a function of knowledge
dissemination and awareness of products amongst potential investors. In building its own
base of assets under management it will necessarily have to carry the entire mutual fund
industry. Towards this end Reliance has launched at wopronged initiative. In the first pincer
it has created aformidable network of 26,000 distributors including some of the biggest
names in the banking sector. This who’s who of the financial industry comprises such giants
as Citibank, Standard Chartered, HSBC,ICICI, AXIS, Bank of Baroda, Central Bank of
India, Allahabad Bank and fund houses such as JM, DSP Merrill Lynch and Karvy in
addition to a massive infrastructure of direct financial investment officers. This prodigious
effort is supplemented by the brands’ captive network of 120 branch offices and 30 financial
centres. In the second prong, Reliance has created a series of information packed
presentations which help dispel misinformation Group. 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 Reliance Capital Asset Management
Limited (RCAM), a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-

9. up capital of RCAM. The company notchedup a healthy growth ofRs.16,354 crore (US$ 4.09
billion) in assets under management in February 2008 and helped propel the total industry
wide AUM to Rs. 565,459 crore(US$ 141.36 billion) (Source: indiainvestments.com). A
sharp rise infixed maturity plans (FMPs) and collection of Rs.7000 crore (US$ 1.75 billion)
through new fund offers (NFOs) created this surge. In AUM rankings, Reliance continues to
be in the number one spot. 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 Mutual
fund investments linked to an ATM/debit card are a Reliance innovation India’s first long-
short fund comes from Reliance Mutual Fund As at 31st May 2008, more than 6.6 million
people had invested in Reliance Mutual Fund; the investments comprised 16% of the
country’s entire mutual fund asset base.
ACHIEVEMENTS
In two successive joint surveys by The Economic Times’ Brand Equity and
ACNielsen, Reliance was recognised 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 category.

10. INTRODUCTION OF THE PROJECT
HISTORY OF MUTUAL FUNDS
It may seem hard to believe given its fairly recent appearance in the public
consciousness, but mutual funds have actually been around for more than 70 years, when
they were first made available in the United States. It was in March 21, 1924 that the first
open-end mutual fund was founded in the country. Called the Massachusetts Investors Trust,
it grew to about 200 shareholders and almost $400,000 in total assets only one year after
beginning operations.
The entire industry–including a few closed-ended funds–nevertheless had a fairly
modest beginning, with less than $10 million total assets in 1924. Its growth proceeded
steadily however, and by the end of December 1999 there were more than 8,000 mutual
funds recorded with well over $6.8 trillion in combined assets.
THE SLOW GROWTH YEARS
As we mentioned earlier, the history of mutual funds has been that growth in the
mutual funds industry was a bit sluggish after its introduction, particularly during its first 27
years. In 1951, the number of mutual funds barely reached the 100 mark, and the number of
shareholders were recorded at just a little over one million. In 1954 however, it was clear that
the stock market was on the upswing, and mutual funds exceeded its 1929 peak. By the end
of the fifties there were just over 150 mutual funds in existence, with combined assets of
nearly $16 billion.
It was in 1967 when mutual funds hit their highest mark so far–or so it seemed.
Figures of the earnings for one quarter showed at least 50%, representing an average return
of 67%, but this was an artificial situation bolstered by the practice of borrowing money, and
entailed risky options, as well as artificially boosting returns with letter stock. Nevertheless,
the end of the 60s saw almost 300 mutual funds in existence, with total assets of nearly $50
billion.

11. MUTUAL FUNDS AFTER THE INTRODUCTION OF THE IRA
The passing of the Individual Retirement Account by Congress in 1981 heralded a
new period of intense growth in mutual funds and by the end of the decade, there were
almost 3,000 mutual funds in existence, with well over $900 billion in combined assets. By
December 1998, the total value of stock mutual funds was recorded at $2.981 trillion or
almost 54% of the total assets of the mutual fund industry.
CONCEPT OF MUTUAL FUND
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through these
investments and the capital appreciation realized is shared by its unit holders in proportion to
the number of units owned by them. Thus a Mutual Fund is the most suitable investment for
the common man as it offers an opportunity to invest in a diversified, professionally managed
basket of securities at a relatively low cost. The flow chart below describes broadly the
working of a mutual fund:
ADVANTAGES OF MUTUAL FUNDS
• Professional Management: Most mutual funds pay topflight professionals to
manage their investments. These managers decide what securities the fund will buy
and sell.

12. • Regulatory oversight: Mutual funds are subject to many government regulations that
protect investors from fraud.
• 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.
• Convenience: You can usually buy mutual fund shares by mail, phone, or over the
Internet.
• Low cost: Mutual fund expenses are often no more than 1.5 percent of your
investment.
DRAWBACKS OF MUTUAL FUNDS
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.
• Management risk: When you invest in a mutual fund, you depend on the fund's
manager to make the right decisions regarding the fund's portfolio. If the manager
does not perform as well as you had hoped, you might not make as much money on
your investment as you expected.

13. MUTUAL FUNDS IN INDIA
The concept of mutual funds in India dates back to the year 1963. The era between
1963 and 1987 marked the existence of only one mutual fund company in India with Rs.
67bn assets under management (AUM), by the end of its monopoly era, the Unit Trust of
India (UTI). By the end of the 80s decade, few other mutual fund companies in India took
their position in Mutual fund market.
The succeeding decade showed a new horizon in Indian mutual fund industry. By the
end of 1993, the total AUM of the industry was Rs. 470.04 bn. The private sector funds
started penetrating the fund families. In the same year the first Mutual Fund Regulations
came into existence with re-registering all mutual funds except UTI. The regulations were
further given a revised shape in 1996.
Kothari Pioneer was the first private sector mutual fund company in India which has
now merged with Franklin Templeton. Just after ten years with private sector player’s
penetration, the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund
companies in India. Some of them are as follows:-
 ABN AMRO MUTUAL FUND: ABN AMRO mutual fund was set up on April
15, 2004 with ABN AMRO Trustee (India) Pvt. Ltd. As the Trustee Company. The
AMC, ABN AMRO Asset Management (India) Ltd. was incorporated on
November 4, 2003. Deutsche Bank AG is the custodian of ABN AMRO Mutual
Fund. ABN AMRO Asset Management is headquartered in London and Amsterdam
with important units in Atlanta, Hong Kong, Chicago and Singapore.
 BIRLA SUN LIFE MUTUAL FUND: Birla Sun Life Mutual Fund is the joint
venture of Aditya Birla Group and Sun Life Financial. Sun Life Financial is a
global organization evolved in 1871 and is being represented in Canada and US.
The AMC of Birla Sun Life Mutual Fund is Birla Sun Life Asset Management
Company Limited which was incorporated on September 5, 1994. Recently Birla
Mutual Fund crossed AUM of Rs. 10,000 crores.
 BANK OF BARODA MUTUAL FUND: Bank of Baroda Mutual Fund was set
up on October 30, 1992 under the sponsorship of Bank of Baroda. BOB Asset

14. Management Company Ltd. Is the AMC of BOB Mutual Fund and was
incorporated on November 5, 1992. Deutsche Bank is the custodian.
 HDFC MUTUAL FUND: HDFC Mutual Fund was set up on June 30, 2000 with
two sponsors namely Housing Development Finance Corporation Limited and
Standard Life Investment Limited.
 HSBC MUTUAL FUND: HSBC Mutual Fund was set up on May 27, 2002 with
HSBC Securities and Capital Markets (India) Private Limited as the sponsor. Board
of Trustees, HSBC Mutual Fund acts as the Trustee Company of HSBC Mutual
Fund.
 PRUDENTIAL ICICI MUTUAL FUND: The mutual fund of ICICI is a joint
venture with Prudential Plc. Of America, one of the largest life insurance
companies in the US. Prudential ICICI mutual fund was set up on October 13, 1993
with two sponsors Prudential Plc. And ICICI Ltd. The Trustee Company formed is
Prudential ICICI Trust Ltd. And the AMC id Prudential Asset Management
Company Limited incorporated on June 22, 1993. The debt funds, the Pru ICICI
equity funds like Power and Growth Plan have well performed in recent past.
Prudential ICICI has a separate analyst who monitors the credit ratings of quality of
assets which are given by the credit rating agencies.
 SAHARA MUTUAL FUND: Sahara Mutual Fund was set up on July 18, 1996
with Sahara India financial corporation ltd. As the sponsor. Sahara Asset
Management Company Private Limited incorporated on August 31, 1995 works as
the AMC of Sahara Mutual Fund.
 STATE BANK OF INDIA MUTUAL FUND: SBI mutual fund is the first bank
sponsored mutual fund to launch offshore fund, the India magnum fund with a
corpus of Rs. 225 crore approximately. Today it is the largest bank sponsored
mutual fund in India. They have already launched 35 schemes out of which 15 have

15. already yielded handsome returns to investors. SBI mutual fund has mire than Rs.
5500 Crores as AUM.
 TATA MUTUAL FUND: Tata mutual fund is a trust under the Indian Trust Act,
1882. Tata Mutual Fund was setup on June 30, 1995. The Asset Management
Company of Tata Mutual Fund is Tata Asset Management Limited, incorporated on
March 15, 1994. The Trustee is Tata Trustee Company Private Limited Tata Asset
Management Limited is one of the fastest growing fund management companies in
India.
 UNIT TRUST OF INDIA MUTUAL FUND: UTI Asset Management Company
Private Limited, established on January 14, 2003, manages the UTI mutual fund
with the support of UTI Trustee Company Private Ltd. UTI Asset Management
Company presently manages a corpus of over Rs. 20000 crore. The sponsors of UTI
mutual fund are Bank of Baroda, Punjab National Bank, State Bank of India and
Life Corporation of India.
 RELIANCE MUTUAL FUND: Reliance mutual fund was established as trust
under Indian trusts act, 1882. The sponsor of RMF is Reliance Capital Limited and
Reliance Capital Trustees Co. limited is the Trustee. It was registered on June 30,
1995 as Reliance Capital Mutual Fund which was changed on March 11, 2004.
Reliance Mutual Fund was formed for launching of 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.
 Standard Chartered Mutual Fund: Standard Chartered Mutual Fund was set up
on March 13, 2000 sponsored by Standard Chartered Bank. The Trustee is Standard
Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset Management
Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December
20,1999.

16.  Franklin Templeton India Mutual Fund: The group, Franklin Templeton
Investments is a California (USA) based company with a global AUM of US$
409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups in
the world. Investors can buy or sell the Mutual Fund through their financial advisor
or through mail or through their website. They have Open end Diversified Equity
schemes, Open end Sector Equity schemes, Open end Hybrid schemes, Open end
Tax Saving schemes, Open end Income and Liquid schemes, Closed end Income
schemes and Open end Fund of Funds schemes to offer.
 Morgan Stanley Mutual Fund India: Morgan Stanley is a worldwide financial
services company and its leading in the market in securities, investment
management and credit services. Morgan Stanley Investment Management (MISM)
was established in the year 1975. It provides customized asset management services
and products to governments, corporations, pension funds and non-profit
organizations. Its services are also extended to high net worth individuals and retail
investors. In India it is known as Morgan Stanley Investment Management Private
Limited (MSIM India) and its AMC is Morgan Stanley Mutual Fund (MSMF). This
is the first close end diversified equity scheme serving the needs of Indian retail
investors focusing on a long-term capital appreciation.
 Escorts Mutual Fund: Escorts Mutual Fund was setup on April 15, 1996 with
Excorts Finance Limited as its sponsor. The Trustee Company is Escorts
Investment Trust Limited. Its AMC was incorporated on December 1, 1995 with the
name Escorts Asset Management Limited.
 Alliance Capital Mutual Fund: Alliance Capital Mutual Fund was setup on
December 30, 1994 with Alliance Capital Management Corp. of Delaware (USA)
as sponsorer. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the
Alliance Capital Asset Management India (Pvt) Ltd. with the corporate office in
Mumbai.

17.  Benchmark Mutual Fund: Benchmark Mutual Fund was setup on June 12, 2001
with Niche Financial Services Pvt. Ltd. as the sponsorer and Benchmark Trustee
Company Pvt. Ltd. as the Trustee Company. Incorporated on October 16, 2000 and
headquartered in Mumbai, Benchmark Asset Management Company Pvt. Ltd. is the
AMC.
 Canbank Mutual Fund: Canbank Mutual Fund was setup on December 19,
1987 with Canara Bank acting as the sponsor. Canbank Investment Management
Services Ltd. incorporated on March 2, 1993 is the AMC. The Corporate Office of
the AMC is in Mumbai.
 Chola Mutual Fund: Chola Mutual Fund under the sponsorship of
Cholamandalam Investment & Finance Company Ltd. was setup on January 3,
1997. Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is
Cholamandalam AMC Limited.
 LIC Mutual Fund: Life Insurance Corporation of India set up LIC Mutual Fund
on 19th June 1989. It contributed Rs. 2 Crores towards the corpus of the Fund. LIC
Mutual Fund was constituted as a Trust in accordance with the provisions of the
Indian Trust Act, 1882. . The Company started its business on 29th April 1994. The
Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset
Management Company Ltd as the Investment Managers for LIC Mutual Fund.
 GIC Mutual Fund: GIC Mutual Fund, sponsored by General Insurance
Corporation of India (GIC), a Government of India undertaking and the four Public
Sector General Insurance Companies, viz. National Insurance Co. Ltd (NIC), The
New India Assurance Co. Ltd. (NIA), The Oriental Insurance Co. Ltd (OIC) and
United India Insurance Co. Ltd. (UII) and is constituted as a Trust in accordance
with the provisions of the Indian Trusts Act, 1882.

18. MUTUAL FUND CLASSIFIACTIONS
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.
TYPES OF MUTUAL FUND SCHEMES
• By Structure
o Open - Ended Schemes
o Close - Ended Schemes
o Interval Schemes
• By Investment Objective
o Growth Schemes
o Income Schemes
o Balanced Schemes
o Money Market Schemes
• Other Schemes
o Tax Saving Schemes
o Special Schemes
 Index Schemes
 Sector Specific Schemes
OPEN ENDED
An open-end mutual fund is a fund that does not have a set number of shares. It
continues to sell shares to investors and will buy back shares when investors wish to sell.
Units are bought and sold at their current net asset value.
Open-end funds keep some portion of their assets in short-term and money market
securities to provide available funds for redemptions. A large portion of most open mutual
funds is invested in highly liquid securities, which enables the fund to raise money by selling
securities at prices very close to those used for valuations.

19. CLOSED ENDED MUTUAL FUND
A closed-end mutual fund has a set number of shares issued to the public through an
initial public offering. These funds have a stipulated maturity period generally ranging from
3 to 15 years.
The fund is open for subscription only during a specified period. 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 they are listed. once underwritten, closed-
end funds trade on stock exchanges like stocks or bonds. The market price of closed-end
funds is determined by supply and demand and not by net-asset value (NAV), as is the case
in open-end funds. Usually closed mutual funds trade at discounts to their underlying asset
value.
INTERVAL SCHEMES
These schemes combine the features of open ended and close ended schemes and are
available for purchase or sale during a select period
LARGE CAP FUNDS
Large cap funds are those mutual funds, which seek capital appreciation by investing
primarily in stocks of large blue chip companies with above-average prospects for earnings
growth.
Different mutual funds have different criteria for classifying companies as large cap.
Generally, companies with a market capitalization in excess of Rs. 1000 crore are known
large cap companies. Investing in large caps is a lower risk-lower return proposition (vis-à-
vis mid cap stocks), because such companies are usually widely researched and information
is widely available.
MID CAP FUNDS
Mid cap funds are those mutual funds, which invest in small / medium sized
companies. As there is no standard definition classifying companies as small or medium,
each mutual fund has its own classification for small and medium sized companies.
Generally, companies with a market capitalization of up to Rs.500 crores are classified as

20. small. Those companies that have a market capitalization between Rs. 500 crores and Rs.
1,000 crores are classified as medium sized.
Big investors like mutual funds and Foreign Institutional Investors are increasingly
investing in mid caps nowadays because the price of large caps has increased substantially.
Small / mid sized companies tend to be under researched thus they present an opportunity to
invest in a company that is yet to be identified by the market. Such companies offer higher
growth potential going forward and therefore an opportunity But mid cap funds are very
volatile and tend to fall like a pack of cards in bad times. So, caution should be exercised
while investing in mid cap mutual funds.
EQUITY MUTUAL FUNDS
Equity mutual funds are also known as stock mutual funds. Equity mutual funds
invest pooled amounts of money in the stocks of public companies.
Stocks represent part ownership, or equity, in companies, and the aim of stock
ownership is to see the value of the companies increase over time. Stocks are often
categorized by their market capitalization (or caps), and can be classified in three basic sizes:
small, medium, and large. Many mutual funds invest primarily in companies of one of these
sizes and are thus classified as large-cap, mid-cap or small-cap funds. Equity fund managers
employ different styles of stock picking when they make investment decisions for their
portfolios. Some fund managers use a value approach to stocks, searching for stocks that are
undervalued when compared to other, similar companies. Another approach to picking is to
look primarily at growth, trying to find stocks that are growing faster than their competitors,
or the market as a whole. Some managers buy both kinds of stocks, building a portfolio of
both growth and value stocks.
BALANCED FUND
Balanced fund is also known as hybrid fund. It is a type of mutual fund that buys a
combination of common stock, preferred stock, bonds, and short-term bonds, to provide both
income and capital appreciation while avoiding excessive risk.
Balanced funds provide investor with an option of single mutual fund that combines
both growth and income objectives, by investing in both stocks (for growth) and bonds (for

21. income). Such diversified holdings ensure that these funds will manage downturns in the
stock market without too much of a loss. But on the flip side, balanced funds will usually
increase less than an all-stock fund during a bull market
GROWTH FUNDS
Growth funds are those mutual funds that aim to achieve capital appreciation by
investing in growth stocks. They focus on those companies, which are experiencing
significant earnings or revenue growth, rather than companies that pay out dividends.
Growth funds tend to look for the fastest-growing companies in the market. Growth
managers are willing to take more risk and pay a premium for their stocks in an effort to
build a portfolio of companies with above-average earnings momentum or price appreciation.
In general, growth funds are more volatile than other types of funds, rising more than other
funds in bull markets and falling more in bear markets. Only aggressive investors, or those
with enough time to make up for short-term market losses, should buy these funds.
NO-LOAD MUTUAL FUNDS
Mutual funds can be classified into two types - Load mutual funds and No-Load
mutual funds. Load funds are those funds that charge commission at the time of purchase
or redemption. They can be further subdivided into (1) Front-end load funds and (2) Back-
end load funds. Front-end load funds charge commission at the time of purchase and back-
end load funds charge commission at the time of redemption.
On the other hand, no-load funds are those funds that can be purchased without
commission. No load funds have several advantages over load funds. Firstly, funds with
loads, on average, consistently under perform no-load funds when the load is taken into
consideration in performance calculations. Secondly, loads understate the real commission
charged because they reduce the total amount being invested. Finally, when a load fund is
held over a long time period, the effect of the load, if paid up front, is not diminished because
if the money paid for the load had invested, as in a no-load fund, it would have been
compounding over the whole time period.

22. EXCHANGE TRADED FUNDS
Exchange Traded Funds ( ETFs ) represent a basket of securities that are traded on an
exchange. An exchange traded fund is similar to an index fund in that it will primarily invest
in the securities of companies that are included in a selected market index. An ETF will
invest in either all of the securities or a representative sample of the securities included in the
index. The investment objective of an ETF is to achieve the same return as a particular
market index.
Exchange traded funds rely on an arbitrage mechanism to keep the prices at which
they trade roughly in line with the net asset values of their underlying portfolios.
VALUE FUNDS
Value funds are those mutual funds that tend to focus on safety rather than growth,
and often choose investments providing dividends as well as capital appreciation. They
invest in companies that the market has overlooked, and stocks that have fallen out of favour
with mainstream investors, either due to changing investor preferences, a poor quarterly
earnings report, or hard times in a particular industry.
Value stocks are often mature companies that have stopped growing and that use their
earnings to pay dividends. Thus value funds produce current income (from the dividends) as
well as long-term growth (from capital appreciation once the stocks become popular again).
They tend to have more conservative and less volatile returns than growth funds.
MONEY MARKET MUTUAL FUNDS
A money market fund is a mutual fund that invests solely in money market
instruments. Money market instruments are forms of debt that mature in less than one year
and are very liquid. Treasury bills make up the bulk of the money market instruments.
Securities in the money market are relatively risk-free.
Money market funds are generally the safest and most secure of mutual fund
investments. The goal of a money-market fund is to preserve principal while yielding a
modest return. Money-market mutual fund is akin to a high-yield bank account but is not
entirely risk free. When investing in a money-market fund, attention should be paid to the
interest rate that is being offered.

23. INTERNATIONAL MUTUAL FUNDS
International mutual funds are those funds that invest in non-domestic securities
markets throughout the world. Investing in international markets provides greater portfolio
diversification and let you capitalize on some of the world's best opportunities. If investments
are chosen carefully, international mutual fund may be profitable when some markets are
rising and others are declining.
However, fund managers need to keep close watch on foreign currencies and world
markets as profitable investments in a rising market can lose money if the foreign currency
rises against the dollar
SECTOR MUTUAL FUNDS
Sector mutual funds are those mutual funds that restrict their investments to a
particular segment or sector of the economy. These funds concentrate on one industry such as
infrastructure, heath care, utilities, pharmaceuticals etc. The idea is to allow investors to
place bets on specific industries or sectors, which have strong growth potential.
These funds tend to be more volatile than funds holding a diversified portfolio of
securities in many industries. Such concentrated portfolios can produce tremendous gains or
losses, depending on whether the chosen sector is in or out of favour.
INDEX FUNDS
An index fund is a type of mutual fund that builds its portfolio by buying stock in all
the companies of a particular index and thereby reproducing the performance of an entire
section of the market. The most popular index of stock index funds is the Standard & Poor's
500. An S&P 500 stock index fund owns 500 stocks-all the companies that are included in
the index.
Investing in an index fund is a form of passive investing. Passive investing has two
big advantages over active investing. First, a passive stock market mutual fund is much
cheaper to run than an active fund. Second, a majority of mutual funds fail to beat broad
indexes such as the S&P

24. FUND OF FUNDS
A fund of funds is a type of mutual fund that invests in other mutual funds. Just as a
mutual fund invests in a number of different securities, a fund of funds holds shares of many
different mutual funds. Fund of funds are designed to achieve greater diversification than
traditional mutual funds. But on the flipside, expense fees on fund of funds are typically
higher than those on regular funds because they include part of the expense fees charged by
the underlying funds.

25. REVIEW OF LITERATURE
REVIEWS
By Porter, Gary E, Trifts, Jack W (1998), This study examines the performance of 93 fund
managers over the 10 year period 1986 through 1995 using relative percentile ranks based on
quarterly compounded, annual total returns measured against funds with the same investment
objective. On average, managers with 10-year track records at the same fund do not perform
better than managers with shorter track records. Also, for these experienced managers,
superior performance in one-five-year period is not predictive of superior performance over
the next five years. However, inferior performance persists, particularly for funds with above
average expense ratios.
Grinblatt and Titman (1992) analyze performance of 279 funds over the period of 1975 to
1984 using a benchmark technique and find evidence that performance differences between
funds persists over time.
Hendricks, Patel, and Zeckhauser (1993) study 165 no-load growth-oriented funds over
the period 1974 to 1988 and obtain similar results. In a study of 728 mutual fund returns over
the period 1976 to 1988.
Goetzman and Ibbotson (1994) find that two-year performance is predictive of performance
over the successive two years. Volkman and Wohar (1995) extend this analysis to examine
factors that impact performance persistence. Their data consists of 322 funds over the period
1980 to 1989, and shows performance persistence is negatively related to size and negatively
related to levels of management fees.
Carhart (1997) shows that expenses and common factors in stock returns such as beta,
market capitalization, one-year return momentum, and whether the portfolio is value or
growth oriented "almost completely" explain short term persistence in risk-adjusted returns.
He concludes that his evidence does not "support the existence of skilled or informed mutual
fund portfolio managers".

26. Kahn and Rudd 1995 study of 300 equity funds and 195 bond funds between 1983 and
1993, only the bond funds show evidence of persistence.
Detzel and Weigand (1998) use a regression residual technique to control for the effects of
investment style, size and expense ratios. They find, after controlling for these variables, no
evidence of performance persistence.
Dunn and Theisen (1983) rank the annual performance of 201 institutional portfolios for the
period 1973 through 1982 without controlling for fund risk. They found no evidence that
funds performed within the same quartile over the ten-year period. They also found that
ranks of individual managers based on 5-year compound returns revealed no consistency.
Bauman and Miller (1995) studied the persistence of pension and investment fund
performance by type of investment organization and investment style. They employed a
quartile ranking technique because they noted that "investors pay particular attention to
consultants' and financial periodicals' investment performance rankings of mutual funds and
pension funds". They found that portfolios managed by investment advisors showed more
consistent performance (measured by quartile rankings) over market cycles and that funds
managed by banks and insurance companies showed the least consistency. They suggest that
this result may be caused by a higher turnover in the decision-making structure in these less
consistent funds. This study controls for the effects of turnover of key decision makers by
restricting the sample to those funds with the same manager for the entire period of study.
Laurie Prather, William J. Bertin and Thomas Henker (2004), This study provides a
comprehensive examination of recent mutual fund performance by analyzing a large set of
both mutual funds and fund attributes in an effort to link performance to fund-specific
characteristics. The results indicate that the hypothesized relationships between performance
and the explanatory variables are generally upheld. After taking into consideration general
market conditions and fund investment objective, the characteristic variables that relate to
fund popularity, growth, cost, and management also explain performance. Finally, after

27. controlling for survivorship and benchmark error as well as fund-specific factors, the results
refute the performance persistence phenomenon.
Crystal, Mary (1997) On bank marketing suggests more direct interaction with customers
by direct mail or personal contact. Doing it pro-actively and by alternative methods: call
centers, PC-banking, internet banking and supermarket banking. Using branding and other
retail marketing skills. Bankers have tried to cut down on personal contact and may have
alienated their customers.
Milligan, John (1996) First Long Island Bank prospers because it serves a small niche of
small privately owned companies and upscale consumers that it coddles by being available
both in person/ phone and online.
Carrow Kenneth A., the study investigates whether the announcement of a merger between
Citicorp and Travelers abnormally impacted stock prices of financial and insurance
companies. Analysis of abnormal returns surrounding the merger show that life insurance
companies and large banks experienced significant stock price increases, while the returns of
stocks of smaller banks, health insurers, and property remain relatively unchanged.
The Bobroff-Mack (2003), The authors study a sample of funds from 55 fund families with
at least $10 billion in assets. They identify the chair’s independence for each fund from (at
least) the most current Statement of Additional Information (SAI) filed with the Commission,
but do not provide information about how many documents were examined and over how
many years. First, they report that the relative and absolute Morningstar rankings of funds
with independent chairs are significantly lower than the rankings of management-affiliated
chaired funds over the past three, five and ten years. Second, they report that the average
alpha for management-chaired funds is higher than for independent-chaired funds. Third,
they report no reliable relation between chair independence and expenses, noting that the
inference depends on how expenses are measured and the relative weight of each fund
considered.

28. The Ferris-Yan Study (2002), This study uses a larger sample of mutual fund families in
2002 to address whether board and chair independence are related to fund fees and whether
independence is related to the probability of a fund family being identified as under
investigation for market timing or late trading activity. The analysis covers almost 450 fund
families with over 97% of industry total net assets. The study does not address the question
of whether board or chair independence is associated with differences in performance.
The Meschke Study (2006), Meschke assesses the impact of board and chair independence
for a sample of 400 randomly chosen mutual funds for the period from 1995 through 2004.
He documents increases in the percentage of boards with independent chairs as well as
increases in the average percentage of director independence over the decade. Meschke
examines whether this increase in independence can be ascribed to an evolution of boards
generally or whether it is associated with a clientele effect – that is, boards add governance
features in response to an increased set of investors who are attracted to funds with those
characteristics.
NEED OF THE STUDY

29. OBJECTIVES OF THE STUDY
The present study has also been taken up to fulfill some objectives. Thus the
objectives of the present study have been identified as follows:-
1. To give a brief idea about the benefits available from mutual Fund investment.
2. To know about the performance of Mutual Funds in Reliance Mutual Fund.
3. To know about the fund management of different schemes.
4. To study the feedback of different investors of Reliance mutual fund.
5. To give an idea about the regulations of mutual funds.
6. To make the study of Mutual Fund in the present scenario.

30. RESEARCH METHODOLOGY
“All progress for born of inquiry. Doubt is often better than over confidence for it
leads to inquiry and inquiry leads invention”.
Research has its significance in solving various operational and planning problems of
business and industry. Operational Research and Market research along with Motivational
Research are considered crucial and their results exist in more that one way in taking
business decisions.
Market Research is the investigation of the structure and development of market for
the purpose of formulating efficient policies for the purchasing, production and sales.
Operational research refers to the application of mathematical, logical and analytical
techniques to the solution of business problems for cost minimization or maximization for
the profit, which can be termed as optimization problems.
Motivational Research of defining why people behave as they do is mainly concerned
with the determination of motivations underlying their consumer behavior. As these are of
great help to people in business and industry who are responsible for taking business
decisions.
The present study, which attempts to know about the awareness and performance of
mutual fund of the different companies, plays a very crucial role. For a good research and for
proper and authentic results research methodology plays a crucial role.
Research Methodology is a way to systematically solve the research problem, which
is a science of studying how research is done scientifically. Thus research methodology
encompasses the research methods or techniques research results are capable at being
evaluated either by the researcher himself or by others.
The project also covers Descriptive Research which includes surveys and fact
findings from various inquiries.
The relationship between the customers and the market players must be established
and explored to make the marketing effort fruitful and profitable. Thus, it is reflected in the
above wording that the present study shall be useful in meeting and exploring the proposed
objectives. Therefore to make the present study meaningful the data shall be collected from

31. various sources such as questionnaire, journals, newspapers and Internet etc. that will serve
as the base for the primary and secondary data and for interacting with the respective users of
the insurance/mutual fund.
Research design
In the present study the exploratory-cum-descriptive research design will be followed
which help in exploring the answers to the specified objectives of the present study.
A research design is an arrangement of condition for collection and analysis of data in
a manner that aims to combine relevance to research purpose with economy in procedure.
In fact the research design is the conceptual structure with in which the research is
conducted. Research design is needed because it facilitates the smooth sailing of the various
research operations. Thereby making research as efficient as possible yielding maximal
information with minimal expenditure of efforts, time and money.
Research Design, in fact, has a great bearing on the reliability of the results arrived at
and as such constitutes the firm foundation of the entire evidence of the research work. In the
other words we can say that research design is advance planning of research.
A good research design should be flexible, appropriate, and efficient and so on. It
should try to minimize biases and maximize reliability of the data collected and analyzed is
considered a good design.
The design must give the smallest experimental error and it should yield maximum
information. The present study is an attempt of descriptive in nature, which defines method
to measure and find a method of measuring it along with a clear-cut definition of population.
Hence it is an endeavour to obtain complete and accurate information and it is a rigid
specially paying attention on these points:
• Objectives of the study
• Designing the methods of data collection
• Selecting the sample
• Collecting the data
• Processing the data
• Reporting the findings

32. STEPS OF METHODOLOGY
Collection of Data
Organisation of Data
Presentation of Data
Analysis of Data
Interpretation of Data
RESEARCH INSTRUMENTS
The proposed study is based on both primary and secondary data. For the primary
data the customers has been contacted with the questionnaire designed to gather the data
relevant with objective of the study. Data is collected through newspapers, magazines,
journals, published reports of the industry players and the internet.
SAMPLING
Sampling may be defined as the selection of some part of an aggregate or totality on
the basic of which a judgment or inference about the aggregate and totality is made.
Sampling is used in practice for various reasons. All items in any field of inquiry constitute a
universe or population complete enumeration of all items in the population is known as
census inquiry. It can be presumed that in such an inquiry, when all items are covered,
element of chance is left and highest accuracy is obtain. But in practice this may be not true.
Even the slightest element of bias in such an inquiry will get larger and as the numbers of
observations increased more over there is no way checking the element of bias or it extend
except through a survey or used sample checks besides this type of inquiry involves a great
deal of time, money and energy. Therefore when the field of inquiry is large this method
becomes difficult to adopt because of the resources involve. On the other hand the sample
survey has the followings advantages:-
Sampling can save time and money: A sample study is usually a less expensive than a
census study and produces results at a relatively a faster speed.

33. . Sampling may enable more accurate measurement for trained and experienced
investigator generally conducts a sample study.
. Sampling remains the only way when population contains infinitely may member.
. Sampling remains the only choice when a test involves the destruction of the item
under study.
. Sampling usually enables to estimate the sampling errors and thus assists in obtaining
information concerning same characteristics of the population.
SAMPLING UNIT: - Every researcher has to take a decision regarding a sample unit before
selecting sample. Sampling unit may be a geographical one such as district, state and village
etc or a social unit such as family, club, school, etc or it may be an individual.
In my study the sampling units are individuals who are the users of the Mutual
Fund.
SAMPLE SIZE: - Size of samples refers to the numbers of items to be selected from the
universe to constitute a sample. This is a major problem before every researcher. The size of
sample should neither be excessively large, nor too small. It should be optimum. An
optimum sample is one, which fulfills the requirements of efficiency representatives,
reliability and flexibility. While deciding the size of sample researcher must determine the
desired precision as also an expectable confidence liable for the estimate, the size of
population variance needs to be consider as in case of large variance usually a bigger sample
is needed. The size of population must be kept in view for this also limits the sample size. As
such budgetary constraints must invariable to taken into consideration when researcher
decide the sample size 100 respondents looking at the above consideration. In this case,
stratified random sampling was done.
SAMPLING PLAN
For the purpose of gathering the primary data the respondents numbering not more
than 100 shall be contacted with the help of a questionnaire. The sampling has been random
and discrete.

34. AREA FOR SAMPLING
The areas, which has been considered for the purpose of present study is Chandigarh,
Derabasi & Zirakpur. Equal number of respondents is contacted for the purpose of uniformity
in results without a place for biasness in area or location.
DATA COLLECTION
The task of data collection begins after the research program has been defined and research
design plan checked out. The data collection is and important part of the research.
DATA COLLECTION METHOD
In the data collection method different methods are adopted for primary data collection and
secondary data collection.
Primary Data Collection: - Primary data collection, which is collected through observation
or direct communication with the respondent in one form or another. These are several
methods for primary data collection.
• Observation Method
• Interview Method
• Through Questionnaire
But as the time was limited I used the Questionnaire method for data collection
Secondary Data: - Secondary data is also collected by me various documents of the
company from the Internet.
DATA COLLECTION INSTRUMENTS
The data collection instruments used in the study are following: -
QUESTIONNAIRE: - This method of data collection is quiet popular, particularly in care of
inquiries. As we know Questionnaire should be comparatively short and simple in the size of
the questionnaire should be kept to minimum questions should proceed in logical sequence
moving from easy to more difficult. Hence questionnaire made by me is structured.
Structured questionnaire is that in which these are define concrete and predetermine

35. questions. The questions were presented with exactly with same wording and in the same
order to all respondents. Structured questionnaire are simple to administer and relatively
inexpensive to analyze. The provision of alternatives replies at times helps to understand the
meaning of question clearly but such questionnaire have limitations too for instance, wide
range of data and that too in respondents own words can’t be obtained with structured
questionnaire.
The sequence is the next important aspect in order to make the effective questionnaire
to ensure quality. A researcher should pay attention to the questions sequence in preparing
the questionnaire. A proper sequence of questions reduces considerably the chances of
individual questions being misunderstood. The following type of question should be avoided.
Questions that put too much strain on the memory or intellectual of the respondent.
• Questions of a personal characters
• Questions related to personal wealth
Question sequence must be clear and smoothly moving, meaning thereby that the relation
of one question to another question should be reading apparent to the respondent.
Concerning the form of questions we can talk about two principles forms:
• Multiple Choice Questions
• Open Ended Questions
Multiple choice or close questions have been the advantages of easy handling, simple to
answer quick and relatively inexpensive to analyze. They are most amendable to a statistical
analysis some time the open questions are difficult to analyze but as they provide large
information so close ended and multiple choice questions are chosen by me in my study.

36. FUND MANAGEMENT OF DIFFERENT SCHEMES OF RELIANCE
MUTUAL FUND
1. DYNAMIC PLAN
It is diversified equity fund that could be your ideal choice to make the most of
dynamic changes in the market. It has the ability to capture upside opportunities across value
and growth, large and midcap, index and non-index stocks. On the flip-side it also has ability
to move into cash as markets get overvalued.
Its objective is to generate capital appreciation by actively investing in equity related
securities for defensive considerations; the scheme may invest in debt, money market
instruments and derivatives.
Table 3.1
Years %age
2009 -3.11
2008 -44.79
2007 40.78
2006 58.31
2005 58.51
2004 15.70

37. 58.31 58.51
60.00
40.78
40.00
Dynamic Plan %age
15.70
20.00
-3.11
0.00
-20.00
-40.00
-44.79
-60.00
2009 2008 2007 2006 2005 2004
Years
As the diagram depicts that the annual return from Reliance Mutual Fund dynamic
plan was 15.70% in 2004 and increased in 2005 and 2006 but it declines in 2007 due to the
entry of new firms in the market and it became negative in 2008 due to recession in the
whole economy of the country and is still facing the same situation.
2. FMCG PLAN
Reliance Mutual FMCG fund is a diversified sector fund that invests in companies
which are benefiting from the consumption boom in the Indian economy. It is an open ended
equity fund. The portfolio is made up of a few number of scrip chosen to reflect the prospects
of FMCG sector. With in the broad definition of the sector scrips are held across sub-sectors
like food, retail distribution and consumables. A smaller allocation to other sectors is
permitted purely for defensive considerations.
Table 3.2
Years %age
2009 -1.79
2008 -44.92
2007 42.75
2006 24.60

38. 2005 94.26
2004 30.12
94.26
100.00
FMCG Fund Return %age 80.00
60.00 42.75
30.12
40.00 24.60
20.00 -1.79
0.00
-20.00
-40.00 -44.92
-60.00
2009 2008 2007 2006 2005 2004
Years
The annual return from Reliance Mutual FMCG fund was 30.12 in 2004 and
increased to 94.26 in 2005 due to recruitment of trained personnel in the organization and
heavy expenditure on promotion. But it decreased in 2006 due to entry of competitors in the
market. But it again increases and becomes negative in 2008 due the problem of recession
and is still facing the same problem.
3. MONTHLY INCOME PLAN
It is that kind of product seeking to generate regular income with stability and lower
risk. It is a conservatively managed fund that invest predominately in debt securities, it invest
with the view of generating regular income from debt securities.

39. Table 3.3
Years %age
2009 -6.15
2008 25.40
2007 9.15
2006 6.23
2005 4.24
2004 -0.10
Monthly Income Return %age
30.00
25.40
25.00
20.00
15.00
9.15
10.00 6.23
4.24
5.00 -0.10
0.00
-5.00 -6.15
-10.00
2009 2008 2007 2006 2005 2004
Years
The annual return from Reliance Mutual monthly income plan was negative in 2004
due to improper knowledge to the consumers but with heavy promotional expenditure it
increases upto the year of 2008 and becomes negative in the year of 2009 due to the effect of
recession.
4. INCOME MULTIPLIER FUND
It is that type of fund which adds a flavor of equity to the debt portfolio so that
investors are able to benefit from the equity market without taking on substantial risks. It
predominantly invests in a debt portfolio that is conservatively managed with a focus on
generating regular income. The objective is to keep interest rate risks and credit risks low.

40. Table 3.4
Years %age
2009 -0.47
2008 -12.08
2007 16.09
2006 14.74
2005 15.74
2004 -8.76
20.00
16.09 14.74 15.74
Income Multiplier Fund Return
15.00
10.00
5.00
%age
-0.47
0.00
-5.00
-10.00 -8.76
-12.08
-15.00
2009 2008 2007 2006 2005 2004
The annual return from Reliance Mutual income multiplier plan was negative in 2004
due to improper knowledge to the customers but with the introduction of it through
advertisements it increases and becomes negative in 2008 due to economic recession and is
still facing the same.
5. BALANCED FUND
Asset allocation is the key to investing success. It helps the investors to reduce the
volatility of returns. A balanced fund takes care of this assets allocation by investing in
equity for capital appreciation and debt for stable returns. It focuses on reducing volatility of
returns by increasing/decreasing equity exposure based on market outlook and using a core

41. debt portfolio to do the rebalancing. It is an open-ended fund that allocates to both equity and
debt markets, reflects this wisdom.
Table 3.5
Years %age
2009 -0.72
2008 -43.83
2007 36.59
2006 29.36
2005 38.70
2004 16.69
38.70
40.00 36.59 29.36
30.00
Balance Fund Return %age
16.69
20.00
10.00 -0.72
0.00
-10.00
-20.00
-30.00
-40.00 -43.83
-50.00
2009 2008 2007 2006 2005 2004
Years
The annual return from Reliance Mutual balanced fund was 16.69% in 2004 and it
increased in 2005 due to training and development of employees and again decreased in 2006
due to increase in competition and it increases in 2007 and negative in 2008 due to recession
and is still facing the same.
6. CHILD CARE (GIFT PLAN)
It is an investment instrument specially designed to help you give your child a head
start in life. It is suitable if your child is in age-group of 1-13 years.
Table 3.6

42. Years %age
2009 -3.44
2008 -6.60
2007 17.04
2006 13.48
2005 14.61
2004 6.36
20.00 17.04
14.61
13.48
Child Care Plan Return %age
15.00
10.00
6.36
5.00
0.00
-3.44
-5.00
-6.60
-10.00
2009 2008 2007 2006 2005 2004
Years
The annual return from Reliance Mutual child care plan (gift) was 17.1% in 2004 and
increased in 2005 due to emotional appeals used by the advertiser and decreased in 2006 due
to increase in the competition and in 2007 it again increases due to training and development
of employees and becomes negative in 2008 due to recession in the economy and is still
facing the same.
7. CHILD CARE (STUDY) PLAN
It is an investment specially designed to help you give your child a head start in life.
It is suitable if your child is in age group of 13-17 years.
Table 3.7

43. Years %age
2009 -3.44
2008 -6.60
2007 17.04
2006 13.48
2005 14.61
2004 6.36
20.00 17.04
14.61
Child Care Plan Return %age
13.48
15.00
10.00 6.36
5.00
0.00
-3.44
-5.00
-6.60
-10.00
2009 2008 2007 2006 2005 2004
Years
The annual return from Reliance Mutual child care plan (study) was 6.36% in 2004
and due to increase in promotion expenses it increased and becomes negative in 2008 due to
recession situation in the economy and is still facing the same.
8. INDEX FUND
There are two approaches to mange an investor’s portfolio. One is active management
which involves choosing sectors and stocks that represent the views of the fund managers, as
best suited to meet the portfolio objective. The other is passive management which simply
means buying into a market index. Reliance Mutual Index fund offers a passive choice to
investors.
Table 3.8

44. Years %age
2009 2.30
2008 -50.36
2007 56.46
2006 41.94
2005 39.98
2004 9.32
56.46
60.00
41.94 39.98
40.00
Index Fund Return %age
20.00
9.32
2.30
0.00
-20.00
-40.00
-50.36
-60.00
2009 2008 2007 2006 2005 2004
Years
The annual return from Reliance Mutual index fund was 9.32% in 2004 and is
increased up to 2007 due to heavy promotional expenses spent on advertisements and
becomes negative in 2008 due to recession situation in the economy and its position now has
been improved.
9. GROWTH PLAN
It seeks to invest in large, profitable and well known companies, and aims to benefit
from the best long terms investments that the market has to offer in large cap space. The
investments are spread across sectors to ensure risk diversification and stocks are selected
through rigorous fundamental bottom up analysis.
Table 3.9

45. Years %age
2009 3.53
2008 -47.74
2007 44.40
2006 42.77
2005 49.53
2004 13.35
49.53
50.00 44.40 42.77
40.00
30.00
Growth Plan %age
20.00 13.35
10.00 3.53
0.00
-10.00
-20.00
-30.00
-40.00 -47.74
-50.00
2009 2008 2007 2006 2005 2004
Years
The annual return from Reliance Mutual growth plan was 13.35% in 2004 and it
increased to 49.53% in 2005 due to heavy promotional expenditure and due to recruitment of
able and trained employees in the organization but it declined in 2006 and became negative
in 2008 due to recession period and its position is now improving day by day.
10. TAX PLAN
It allows the investors to harness the benefits of long term equity investing in addition
to helping you save tax. It is an open-ended equity linked saving scheme. It is suited for
patient investors who have a long term investing horizon of 3-5 years and at the same time
are looking at tax saving.
Table 3.10

46. Years %age
2009 69.5
2008 -56.4
2007 39.1
2006 23.5
2005 67.7
2004 35.9
80 69.5 67.7
60
Tax Plan Retrun (In %age)
39.1
35.9
40
23.5
20
0
-20
-40
-56.4
-60
2009 2008 2007 2006 2005 2004
Years
The annual return from Reliance Mutual tax plan was 35.9% in 2004 but it increased
suddenly to 67.7% in 2005 due to heavy expenditure on the promotional tools. This plan
helps to save tax. But it decreased in 2006 due to the increase in the competition in the
market but it became negative in 2008 due to economic recession and is still facing the same
problem.
11. EMERGING S.T.A.R. (Stocks Targeted At Returns) PLAN
It identifies and focuses on those stocks that not only hold promise but can also
weather adversity in their path to becoming big and seeks to bring you the benefit of
investing in the leaders of tomorrow, today. It is an open-ended equity fund that is focused on
mid-cap sector. It provides the opportunity to take part in and gain from the growth stories of
lesser known, smaller stocks.
Table 3.11

47. Years %age
2009 -10.30
2008 -68.40
2007 59.40
2006 38.50
2005 68.90
2004 19.30
80.00 68.90
59.40
Emerging S.T.A.R. %age
60.00
38.50
40.00
19.30
20.00
0.00
-10.30
-20.00
-40.00
-60.00
-68.40
-80.00
The annual return from Reliance Mutual emerging S.T.A.R. fund2004 19.3% in 2004
2009 2008 2007 2006 2005 was
Years
and increased in 2005 due to increase in the advertisements and decreased in 2006 due to
increase in the competition and lack of able manpower in the organization but it increased in
2007 due to heavy expenditure on training and development of employees and became
negative in 2008 due to recession situation in the economy and is still facing the same
situation.
12. DISCOVERY FUND
It offers an alternative value investing style that helps in truly balancing the equity
portfolio. The value Philosophy focuses on discovering stocks that have high potential but
are currently lying low at a discount to their inherent value.
It seeks to invest in companies that are well managed and fundamentally strong,
picked based on in depth research. As these companies are brought at discount to their fair
value, there is a margin of safety in the value portfolio.
Table 3.12

48. Years %age
2009 -3.43
2008 -54.56
2007 39.65
2006 28.69
2005 63.74
2004 24.93
Discovery Fund Return %age
80.00 63.74
60.00
39.65
40.00 28.69 24.93
20.00
0.00
-3.43
-20.00
-40.00
-54.56
-60.00
2009 2008 2007 2006 2005 2004
Years
The annual return from Reliance Mutual discovery fund was 24.93% in 2004 and it
increased in 2005 due to promotional expenses and decreased in 2006 due to lack of able
manpower and it again increased in 2007 due to training and development and became
negative in 2008 due to recession period in the whole economy and is trying to move out
from the worst situation.
13. TECHNOLOGY FUND
It is a concentrated sector fund that focuses predominantly on information
Technology. The fund can enhance exposure of an investor’s Portfolio to this sector, if
investor is convinced about the prospects.
Table 3.13
Years %age
2009 -4.91
2008 -62.76
2007 10.92
2006 51.64

49. 2005 53.34
2004 17.08
51.64 53.34
60.00
Technology Fund Return %age 40.00
10.92 17.08
20.00
-4.91
0.00
-20.00
-40.00
-60.00 -62.76
-80.00
2009 2008 2007 2006 2005 2004
The annual return from Reliance Mutual Years
technology fund was 17.08% in 2004 and
increased in 2005 due to heavy promotional expenses and it decreased in 2006 and 2007 due
to entry of new firms in the market and becomes negative in 2008 due to recession in the
economy and is still facing the same.
14. POWER
It is an open-ended equity fund. The port folio is made up of large cap and mid-cap
Stocks and is aimed at capturing the growth opportunities across multiple sectors in the
market. It seeks to optimize risk adjusted return.
Table 3.14
Years %age
60.00 51.47 50.55
2009 1.54
2008 -54.78
Power Fund Return %age
40.00
2007 51.47
2006
20.00 1.54
50.55
0.00
-20.00
-40.00 -54.78
-60.00
2009 2008 2007 2006
Years

50. The annual return of Reliance Mutual power plan was 50.55% in 2006 and it
increased in 2007 due to increase in the promotional expenses and becomes negative in 2008
due to recession situation in the economy and its situation is now improving day by day.

51. ANALYSIS AND INTERPRETATION
Table 4.1
Classification of the Respondents on the basis of their Occupation
Occupation No. of Respondents %age
Businessman 26 26%
Govt. Employee 36 36%
Students 10 10%
Professional 15 15%
Any Other 13 13%
40 36
35
No.of Respondents
30 26
25
20 15
13
15 10
10
5
0
Professional
Businessm an
Any Other
Em ployee
Students
Govt.
Occupation
The above diagram shows that 36 respondents are govt. employees, 26 respondents
are businessman, 15 respondents are professionals, 13 respondents belongs to any other
category i.e. farmers and small shopkeepers and 10 respondents are students, has been taken
as sample size for the research study by the researcher.