STUDY AND ANALYSIS OF
MUTUAL FUNDS IN INDIA
(WITH REFERENCE TO
RELIANCE MUTUAL FUND)
Mutual Fund investment is the fastest growing investment industry in the
present scenario and it needs to be properly supported with educating the
investor community which is not aware of Mutual Fund as it is of other
forms of investment patterns like those of Fixed Deposits, Savings
Accounts, Postal Deposits, Recurring Deposits, Insurance plans, Stocks
etc. 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:
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
The first part gives an insight about the mutual funds and its
various aspects. 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. 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.
The second part consists of data and their analysis. The data
collected has been well organized and presented. Hope the
research findings and conclusions will be of use. The advisors
can take further steps to approach more and more people and
indulge them for taking their advices.
OBJECTIVES OF THE STUDY
To understand the concept of Mutual fund, its
working and various types of mutual fund.
To study the risk involved in MFs.
Collection of data:
Secondary data: Fact sheets of Mutual Funds collected
through various web-sites, Magazines, Journals and
Analysis of data
Preparation of project report
Research has been done by secondary data collection. The
secondary data has been collected through various journals
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
The income earned through these investments and the
capital appreciation realised are shared by its unit
holders in proportion to the number of units owned by
MUTUAL FUND OPERATION
Pool their money in
Which is invested inThat generates
Given back to
No matter what type of investor you are, there is
bound to be a mutual fund that fits your style.
It's important to understand that each mutual fund has
different risks and rewards. In general, the higher the
potential return, the higher the risk of loss.
At the fundamental level, mutual funds can be
classified on three parameters:
1) On the basis of structure.
2) On the basis of investment objective.
3) On the basis of special schemes.
TYPES OF MUTUAL FUNDS
TYPES OF MUTUAL FUNDS
Systematic Investment Plan (SIP)
Invest a fixed sum every month. (6 months to 10
years- through post-dated cheques or Direct Debit
Fewer units when the share prices are high, and more
units when the share prices are low.
Convenience and Discipline are the benefits of SIP.
Systematic Withdrawal Plan (SWP)
Is a facility provided by a mutual fund to
withdraw money on a regular basis.
INDIAN MUTUAL FUNDS
FUTURE - GROWTH FACTS
In the past 6 years, Mutual Funds in India
have recorded a growth of 100 %.
One of the major factors contributing to the
growth of this industry has been the booming
stock market with an optimistic domestic
Second most important reason for this growth
is a favorable regulatory regime which has
been enforced by SEBI. This regulatory board
has improved the market surveillance to
protect the investor’s interest.
In the future, there lies a big scope for the Indian
Mutual Funds industry to expand.
Several asset management companies which are
foreign based are now entering the Indian
A number of commodity Mutual Funds will be
introduced in the future. The SEBI (Securities
Exchange Board of India) has granted the
permission for the same.
More emphasis is put on the effective Mutual
There is also enough scope for the Indian Mutual
funds to enter into the semi-urban and rural
Reliance mutual fund, a part of the Reliance- Anil
Dhirubhai group (RADAG) is one of the fastest growing
mutual funds in the country.
Reliance mutual fund offers investors a well rounded
portfolio of products to meet varying investor
Reliance mutual fund has a presence in 95 cities across
the country, an investor base of over 2.8 million and
manages assets of Rs36927crore as on December 31,
RMF has been registered with the Securities &
Exchange Board of India (SEBI) vide registration
number MF/022/95/1 dated June 30, 1995.
Reliance Mutual Fund was formed to launch various
schemes under which units are issued to the Public with
a view to contribute to the capital market and to provide
investors the opportunities to make investments in
FINDINGS AND SUGGESTION
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.
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
It is hopeful that this study creates awareness that the mutual
funds are worth investment practice. The various schemes of
mutual funds provide the investors with a wide range of
investments options according to his risk bearing capacities and
interest. Besides they also give a handy return to the investors.
The project analyses various schemes of Different Companies.
In India Mutual funds are playing important role. The mutual funds
companies pool the savings of small investors and invest those
collected huge amount of funds in different sectors of the
economy. They are performing like intermediary between small
investor and the Indian capital market. In recent years many
mutual fund companies are established. Through this
competition is increased among the companies. To encounter
the competition the different companies are introducing different
types of mutual fund schemes with attractive returns and low
risk. So it is an advantage to the investors.
The stock market has been rising for over six years now. This in
turn has not only protected the money invested in funds but has
also to helped grow these investments.
Introduction to Mutual Fund By AMFI
“Comparative study and analysis of Mutual Funds”,