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Reliance Mutual Fund

Reliance Mutual Fund

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  • THE SPONSORERS OF ASSOCIATION OF MUTUAL FUNDS IN INDIA :
  • AMC
  • NAV
  • UNITS
  • SPONSORS
  • INCOME FUND
  • GROWTH FUNDS
  • BALANCED FUNDS
  • CLOSE ENDED
  • OPEN ENDED FUNDS
  • LOCK IN PERIOD
  • MANAGEMENT FEES
  • REDEMPTION
  • MARKET PRICE
  • REGISTRAR
  • CUSTODAIN
  • EXIT LOAD
  • ENTRY LOAD
  • LIQUIDITY
  • TRANSPARENCY
  • CONCEPT OF MUTUAL FUNDS
  • WHAT IS A MUTUAL FUND?
  • WHAT DOES A MUTUAL FUND DO WITH INVESTOR'S MONEY?
  • MUTUAL FUNDS V/S PORTFOLIO MANAGEMENT SCHEMES
  • MUTUAL FUND V/S BANK DEPOSIT
  • Capital Appreciation:
  • NET ASSET VALUE (NAV)
  • LOAD
  • SALE PRICE
  • ORGANISATION OF MUTUAL FUND INDUSTRY
  • STRUCTURE OF THE INDIAN MUTUAL FUND INDUSTRY :
  • THE STRUCTURE CONSISTS OF :
  • SPONSOR
  • TRUST
  • TRUSTEE
  • ASSET MANAGEMENT COMPANY (AMC) :
  • REGISTRAR AND TRANSFER AGENT
  • CUSTODIAN
  • Other Advantages of investing in a Mutual Fund are:
  • The MAJOR PLAYERS in the Indian Mutual Fund Industry are:
  • GROWTH IN ASSETS UNDER MANAGEMENT
  • FIRST PHASE - 1964-87
  • SECOND PHASE -1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS)
  • THIRD PHASE 1993- 1996 EMERGENCE OF PRIVATE FUNDS
  • FOURTH PHASE - 1996-1999: GROWTH AND SEBI REGULATION
  • FIFTH PHASE - 1999-2004: EMERGENCE OF LARGE AND UNIFORM INDUSTRY
  • SIXTH PHASE - 2004: CONSOLIDATION AND GROWTH
  • BY STRUCTURE:
  • OPEN-ENDED FUND/ SCHEME
  • CLOSE-ENDED FUND/SCHEME
  • DIFFERENCE BETWEEN OPEN-END AND CLOSED-END FUNDS
  • ADVANTAGES OF CLOSED-END FUNDS
  • DISADVANTAGES OF CLOSED-END FUNDS
  • INTERVAL FUNDS
  • BY INVESTMENT OBJECTIVE:
  • INCOME FUNDS
  • TYPES OF INCOME FUNDS
  • BALANCED FUNDS / HYBRID FUNDS
  • TYPES OF HYBRID FUNDS
  • MONEY MARKET FUNDS
  • LOAD FUNDS
  • NO-LOAD FUNDS
  • TAX SAVING SCHEMES
  • SPECIAL SCHEMES
  • CHECK OUT THE MACROS
  • SENSE OF THE SENSEX
  • INTEREST RATES AND LIQUIDITY
  • CHECK OUT THE MICROS
  • POINTS TO REMEMBER BEFORE INVESTMENT :
  • RELIANCE CAPITAL ASSET MANAGEMENT LTD
  • RELIANCE MUTUAL FUND
  • RELIANCE EQUITY FUND
  • RELIANCE TAX SAVER (ELSS) FUND
  • RELIANCE EQUITY OPPORTUNITIES FUND
  • RELIANCE VISION FUND
  • RELIANCE GROWTH FUND
  • RELIANCE INDEX FUND
  • RELIANCE NRI EQUITY FUND
  • RELIANCE MONTHLY INCOME PLAN
  • RELIANCE GILT SECURITIES FUND
  • RELIANCE INCOME FUND
  • RELIANCE MEDIUM TERM FUND
  • RELIANCE SHORT TERM FUND
  • RELIANCE LIQUID FUND
  • RELIANCE FIXED TERM SCHEME
  • RELIANCE FLOATING RATE FUND
  • RELIANCE NRI INCOME FUND
  • RELIANCE FIXED MATURITY FUND - SERIES I
  • RELIANCE FIXED MATURITY FUND - SERIES II
  • RELIANCE LIQUIDITY FUND
  • RELIANCE REGULAR SAVINGS FUND(AN OPEN - ENDED SCHEME)
  • THE INVESTMENT OBJECTIVES:
  • RELIANCE BANKING FUND
  • RELIANCE DIVERSIFIED POWER SECTOR FUND
  • RELIANCE PHARMA FUND
  • RELIANCE MEDIA & ENTERTAINMENT FUND
  • SALIENT FEATURES :
  • ZONAL HEADS
  • THE SPONSORS
  • RELIANCE CAPITAL LIMITED Registered Office
  • Corporate Office
  • A. PROBLEM:
  • B. DEVELOPING THE RESEARCH PLAN :
  • The development of Research Plan has the following Steps :
  • DATA SOURCES
  • RESEARCH INSTRUMENT
  • SAMPLING PLAN
  • COLLECTING THE INFORMATION
  • ANALYZE THE INFORMATION
  • IMPORTANCE OF OPERATIONS AND CUSTOMER SATISFACTION
  • INVESTORS
  • BROKERS
  • PRODUCT TRAINING :
  • S.NO.NAME OF DISTRIBUTORSNO. OF
  • APP. TOTAL BUSINESS GENERATED
  • OUTCOME
  • MY ROLE
  • Q. WHICH FACTOR INFLUENCES YOU MOST TO INVEST IN MUTUAL
  • FUNDS
  • INCREASING CONSUMER PARTICIPATION
  • WEBSITES:
  • BOOKS & MAGAZINES:

ASSOCIATION OF MUTUAL FUND OF INDIA

With the increase in mutual fund players in India, a need for mutual fund association in India was generated to function as a non-profit organisation. Association of Mutual Funds in India (AMFI) was incorporated on 22nd August 1995. AMFI is an apex body of all Asset Management Companies (AMC), which has been registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes are its members. It functions under the supervision and guidelines of its Board of Directors. Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders

THE OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS IN INDIA :
The Association of Mutual Funds of India works with 30 registered AMCs of the country. It has certain defined objectives, which juxtaposes the guidelines of its Board of Directors. The objectives are as follows:

This mutual fund association of India maintains a high professional and ethical standard in all areas of operation of the industry. It also recommends and promotes the top class business practices and code of conduct which is followed by members and related people engaged in the activities of mutual fund and asset management. The agencies who are by any means connected or involved in the field of capital markets and financial services

also involved in this code of conduct of the association.

AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry. Association of Mutual Fund of India do represent the Government of India, the Reserve Bank of India and other related bodies on matters relating to the Mutual Fund Industry.

It develops a team of well-qualified and trained Agent distributors. It implements a programme of training and certification for all intermediaries and other engaged in the mutual fund industry.

AMFI undertakes all India awareness programme for investors in order to promote proper understanding of the concept and working of mutual funds. At last but not the least association of mutual fund of India also disseminate information’s on Mutual Fund Industry and undertakes studies and research either directly or in association with other bodies.

THE SPONSORERS OF ASSOCIATION OF MUTUAL FUNDS IN INDIA :

BANK SPONSORED
• • • •

SBI Fund Management Ltd. BOB Asset Management Co. Ltd. Can bank Investment Management Services Ltd. UTI Asset Management Company Pvt. Ltd.

Institutions
• •

GIC Asset Management Co. Ltd. Jeevan Bima Sahayog Asset Management Co. Ltd

Private Sector Indian:•

Benchmark Asset Management Co. Pvt. Ltd.

• • • • • • • • •

Cholamandalam Asset Management Co. Ltd. Credit Capital Asset Management Co. Ltd. Escorts Asset Management Ltd. JM Financial Mutual Fund Kotak Mahindra Asset Management Co. Ltd. Reliance Capital Asset Management Ltd. Sahara Asset Management Co. Pvt. Ltd Sundaram Asset Management Company Ltd. Tata Asset Management Private Ltd.

Predominantly India Joint Ventures:• • •

Birla Sun Life Asset Management Co. Ltd. DSP Merrill Lynch Fund Managers Limited HDFC Asset Management Company Ltd.

Predominantly Foreign Joint Ventures:• • • • • • • • •

ABN AMRO Asset Management (I) Ltd. Alliance Capital Asset Management (India) Pvt. Ltd. Deutsche Asset Management (India) Pvt. Ltd. Fidelity Fund Management Private Limited Franklin Templeton Asset Mgmt. (India) Pvt. Ltd. HSBC Asset Management (India) Private Ltd. ING Investment Management (India) Pvt. Ltd. Morgan Stanley Investment Management Pvt. Ltd. Principal Asset Management Co. Pvt. Ltd.

• •

Prudential ICICI Asset Management Co. Ltd. Standard Chartered Asset Mgmt Co. Pvt. Ltd.

GLOSSARY OF SOME CONCEPTS
AMC The AMC is the corporate entity, which markets and manager and manages a mutual fund scheme and in return receives a management fee from the fund corpus. SEBI specifies that an AMC must be separate entity the trust that manages it. NAV It is the value of unit of a Mutual Fund scheme and represents its true worth. NAV is arrived at by dividing total value of all investment made under the scheme by number of units of the scheme. NAV is critical yardstick of the funds performance. UNITS Units in a mutual fund scheme are similar to shares of a joint company. These are always in denominations of Rs. 10 each the sum total of all the units constitutes corpus of mutual fund. SPONSORS Sponsor of a mutual fund are those who establish the mutual fund trust and the AMC they constitute the shareholders of the AMC and receive dividends on profits made by the AMC. SEBI rules stipulate that mutual fund trust as well as the AMC must maintain an arms length relationship with the sponsors to avoid any conflict to interests, which may affect the unit holders.

their scale may fluctuate depending upon the prevalent interest rates and credit quality of the debt securities. Close-ended funds mature after a specified period. Such funds earn returns more regularly than a growth fund but level of returns over longer periods normally lag behind those offered by growth funds while returns in such funds may be regular. . CLOSE ENDED In a close-ended fund an investor is allowed to subscribe only during the period of the initial offer. Equity funds may earn higher but they also carry larger risks. For risk taking investor equity are best suited. Withdrawals are allowed at NAV minus a back end load. Since stock markets travel through a natural cycle of boom and bursts one should normally stay invested inequity funds for a longer times to earn higher returns. after the close of initial offer. BALANCED FUNDS A balanced fund is the mixture of income fund and growth fund invested partly in equity to achieve a trade-of between risk and return. OPEN ENDED FUNDS Funds in which investor can invest & withdraw whenever he wishes.INCOME FUND These Funds invest largely in fixed income securities like bonds and debentures. GROWTH FUNDS Growth funds predominantly invest in stock market securities and carry risks larger than income funds.

CUSTODAIN Banking organization that keeps in safe custody all the securities & other instruments belonging to the fund to insure smooth inflow & outflow of securities. accepts and processes investors applications in informs AMC about amounts received/disbursed for subscription/ purchase/ redemption it also handles communications with investors. MARKET PRICE Price at which units of mutual funds are quoted in stock exchange where they are listed. REDEMPTION Disbursement of the unit capital on maturity of the scheme to all exiting unit holders. It is also approved regulated and registered with SEBI. monitored. . REGISTRAR Organization appointed by an AMC to the schemes it is registered. MANAGEMENT FEES An AMC that mangers & markets a mutual fund scheme is entitled to a management fee@ 1% to 25% of the total funds managed. it provides required services like system capabilities back up. it could be charged to the scheme irrespective of the performance of the scheme. perform data entry services and dispatches account statements. Lock in period is imposed to allow fund manager to deploy money for an adequate period of time to earn a reasonable return premature withdrawals may destabilize the fund & are not beneficial to the interests of investors.LOCK IN PERIOD Period of time during which you can neither redeem nor transfer your holdings to others. and regulated by SEBI.

and its NAV is calculated and published daily so that there is no chance of any default in the working of Mutual Funds. .EXIT LOAD Value of deduction from NAV on the date when one choose to withdraw from a fund. which are charged to the scheme. it has to work under strict guidelines issued by SEBI. LIQUIDITY Ability of investors to change its unit into cash within minimum time as and when he needs money. TRANSPARENCY Basic feature of mutual funds is transparency. Mutual funds incur many expenses during an issue. load is imposed because withdrawals carry transaction cost to AMC it can not be more than 6% of NAV of corpus as prescribed by SEBI many schemes offer redemption facility without exit load. ENTRY LOAD Charge paid by unit holder when he invests an amount in the scheme. well monitored & transparent working of AMC is regulated by SEBI it is audited weekly. Such load is called entry load. their functioning is very efficient.

This is why investing through mutual funds has become such a popular way of investing. You are not the only one. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced.INTRODUCTION CONCEPT OF MUTUAL FUNDS These days you are hearing more and more about mutual funds as a means of investment. The mutual funds normally come out with a number of schemes with different investment objectives. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. The investors in proportion to their investments share the profits or losses. WHAT IS A MUTUAL FUND? Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. investing is probably something you simply do not have the time or knowledge to get involved in. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. If you are like most people. Apart from that. . you probably have most of your money in a bank savings account and your biggest investment may be your home.

WHAT DOES A MUTUAL FUND DO WITH INVESTOR'S MONEY? Anybody with an investible surplus of as little as a few hundred rupees can invest in mutual funds. The investors buy units of a fund that best suits their investment objectives and future needs. the investments of different investors are pooled to form a common investible corpus and gain/loss to all investors during a given period are same for all investors while in case of portfolio management scheme. the bank is supposed to return the principal amount and interest to you. as per the investment strategy specified for the scheme. Here the gain or loss of all the investors will be different from each other. less expenses of the manager. with the expenses. is reflected in the NAV or distributed as income. loss. if any.which are launched from time to time. Likewise. money market instruments etc. is to be borne by you. A Mutual Fund invests the pool of money collected from the investors in a range of securities comprising equities. the investments of a particular investor remains identifiable to him. on your behalf. The profit. is in turn invested by the manager. the money you invest. . A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI). in a mutual fund. MUTUAL FUNDS V/S PORTFOLIO MANAGEMENT SCHEMES In case of mutual funds. MUTUAL FUND V/S BANK DEPOSIT When you deposit money with the bank. debt. which regulates securities markets before it can collect funds from the public. The income earned and the capital appreciation realized by the scheme. are shared by the investors in same proportion as the number of units owned by them. On the date of maturity. after charging for the AMC fees. the bank promises to pay you a certain rate of interest for the period you specify. if any. Whereas.

Dividend distribution again is of two types. It can either be reinvested in the fund or can be on paid to the investor. . Capital Appreciation: An increase in the value of the units of the fund is known as capital appreciation.Capital Appreciation or Dividend Distribution. An investor can book a profit by selling the units at prices higher than the price at which he bought the units. the fund's unit price increases. Dividend Distribution: The profit earned by the fund is distributed among unit holders in the form of dividends.TYPES OF RETURNS FROM A MUTUAL FUND :Mutual Funds give returns in two ways . As the value of individual securities in the fund increases.

Net Asset Value is the market value of the securities held by the scheme. The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on any particular date. Unit Capital is the investor’s subscriptions. There are liabilities of short-term nature. . of Outstanding Units The NAV reflects the liquidation value of the fund's investments on that particular day after accounting for all expenses.MUTUAL FUND TERMINOLOGY NET ASSET VALUE (NAV) Net Asset Value (NAV) denotes the performance of a particular scheme of a mutual fund. NAV of a scheme also varies on day-to-day basis. In simple words. Since market value of securities changes every day. Investments made on behalf of the investors are reflected on the assets side of the balance sheet. In mutual funds it is not treated as a liability. It is calculated by deducting all liabilities (except unit capital) of the fund from the realizable value of all assets and dividing it by number of units outstanding.  Fund’s Net Asset = Asset – Liabilities  Net Asset Value = Net Assets of the scheme / No.

if the market value of securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. Capital Appreciation in the underlying value of the stocks held in the portfolio. Dividend and income earned on the assets. 10 each to the investors. The exit load percentage is deducted from the NAV at the time of redemption or transfer between schemes. .depending on the type of scheme. The entry load percentage is added to the NAV at the time of allotment of units. Number of units sold or purchased.daily or weekly . When a charge is collected at the time of entering into the scheme it is called an Entry load or Front-end load or Sales load. Other assets and liabilities. • Some schemes do not charge any load and are called "No Load Schemes" Capital Gains or Losses on the sale or purchase of the Investment securities.For example. NAV is required to be disclosed by the mutual funds on a regular basis . The factors affecting the NAV are as following: • • • • • LOAD • • The charge collected by a Mutual Fund from an investor for selling the units or investing in it.20. then the NAV per unit of the fund is Rs. • An Exit load or Back-end load or Repurchase load is a charge that is collected at the time of redeeming or for transfer between schemes (switch).

The flow chart above describes broadly the working of mutual fund . This price may include the sales or entry load.SALE PRICE It is the price paid by an investor when investing in a scheme of a Mutual Fund. MUTUAL FUND INVESTMENT CYCLE Funds will also usually give you a choice either to receive a cheque for distributors or to reinvest the earnings and get more shares.

MUTUAL FUND ORGANIZATION:There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund: .

while legally incorrect. is true for all practical purposes. is the biggest scheme with a corpus of about Rs200bn.ORGANISATION OF MUTUAL FUND INDUSTRY STRUCTURE OF THE INDIAN MUTUAL FUND INDUSTRY : The Unit Trust of India dominates the Indian mutual fund industry. The UTI has many funds/schemes in all categories i. which has a total corpus of Rs700bn collected from more than 20 million investors. which. income etc with some being openended and some being closed-ended.e. The Unit Scheme 1964 commonly referred to as US 64. balanced. which is a balanced fund. UTI was floated by financial institutions and is governed by a special act of Parliament. equity. . Most of its investors believe that the UTI is government owned and controlled.

The largest of these are Prudential ICICI AMC and Birla Sun Life AMC. Sponsor must contribute at least 40% of the net worth of the Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations. Can bank Asset Management floated by Canara Bank and SBI Funds Management floated by the State Bank of India are the largest of these.The second largest category of mutual funds is the ones floated by nationalized banks. 1908. TRUSTEE Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). 1882 by the Sponsor.The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund. The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of . GIC AMC floated by General Insurance Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the other prominent ones. The third largest category of mutual funds is the ones floated by the private sector and by foreign asset management companies. The aggregate corpus of assets managed by this category of AMCs is in excess of Rs250bn THE STRUCTURE CONSISTS OF : SPONSOR Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. The trust deed is registered under the Indian Registration Act. 1996. TRUST The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act. The aggregate corpus of funds managed by this category of AMCs is about Rs150bn.

D. REGISTRAR AND TRANSFER AGENT The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. A Custody Agreement has been entered with Deutsche Bank in accordance with SEBI Regulations. as the Custodian of the securities that are bought and sold under the Scheme. 222 Dr. Deutsche Bank. The registrar and transfer agent also handles communications with investors and updates investor records. Ground Floor. redemption requests and dispatches account statements to the unit holders. IN/CUS/003 to act as Custodian for the Fund. AG • The Trustee has appointed Deutsche Bank. CUSTODIAN Custodian is the agency. The AMC must have a net worth of at least 10 crore at all times. the provisions of the Trust Deed and the Offer Documents of the respective Schemes. 1996. ASSET MANAGEMENT COMPANY (AMC) : The Trustee as the Investment Manager of the Mutual Fund appoints the AMC.Investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations. AG located at Kodak House. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund.Road. At least 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner. The Registrar processes the application form. Mumbai-400 001. The Custodian is approved by SEBI under registration no. which will have the physical possession of all the securities purchased by the mutual fund.N. At least 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. .

FUND STRUCTURE Fund Sponsor Trustees Asset Management Company Depository Agent Custodian .

However. An investor can pick up a scheme depending upon his risk / return profile. mutual funds have the advantage of the redemption option at the NAVs. Over and above this the units can be directly redeemed to the Mutual Fund as and when they announce the repurchase. Mutual Funds also provide complete portfolio disclosure of the investments made by various schemes and also the proportion invested in each asset type. Such a spread would not have been possible without their assistance. They thoroughly analyze the markets and economy to pick good investment opportunities. . Also in cases of liquidity crisis where stocks are sold at a distress. Choice: The large amount of Mutual Funds offers the investor a wide variety to choose from. thus increasing his or her risk. A fund normally invests in companies across a wide range of industries.ADVANTAGES OF MUTUAL FUNDS Small investments: Mutual funds help you to reap the benefit of returns by a portfolio spread across a wide spectrum of companies with small investments. Professional Fund Management: Professionals having considerable expertise. experience and resources manage the pool of money collected by a mutual fund. a mutual fund will spread its risk by investing a number of sound stocks or bonds. Liquidity: Closed ended funds have their units listed at the stock exchange. thus they can be bought and sold at their market value. so the risk is diversified at the same time taking advantage of the position it holds. Transparency and interactivity: Mutual Funds regularly provide investors with information on the value of their investments. Spreading Risk: An investor with a limited amount of fund might be able to to invest in only one or two stocks / bonds. Mutual Funds clearly layout their investment strategy to the investor.

Other Advantages of investing in a Mutual Fund are: • • • • • • Diversification Convenient Administration Return Potential Low Costs Flexibility Tax benefits .Regulations: All the mutual funds are registered with SEBI and they function within the provisions of strict regulation designed to protect the interests of the investor.

still under the control of Government of India with AUM of Rs. PNB. 67. Many reputed foreign mutual funds such as Templeton. BOB and LIC.INDIAN MUTUAL FUND INDUSTRY The history of Indian mutual fund industry can be distinctly divided into two phases . 2003. non-UTI.004 million. Detailed guidelines were established and the mutual fund industry (except UTI) came under the regulation of Securities Exchange Board of India (SEBI). Prudential group etc. In February 2003. there were 33 mutual funds with total assets of Rs. The second is the UTI Mutual Fund Ltd. with assets under . paving the way for an unprecedented choice of products and services to Indian investors. public sector mutual funds were allowed and public sector banks and financial institutions set up a series of mutual fund companies. set up operations in India.000 million. the Unit Trust of India Act 1963 was repealed and UTI was broken into two separate entities. there were totally 31 funds in India. Unit Trust of India (UTI) was established in 1963 and launched its legendary first scheme 'US-64' in 1964. 298. One is the Specified Undertaking of the Unit Trust of India. At the end of1993 the overall AUM of mutual fund industry was Rs.the period before liberalization when only public sector players existed with one dominant player Unit Trust of India and the post-liberalization era where the industry was opened up to private players. As at the end of January 2003. From 1987. It is registered with SEBI and functions under the Mutual Fund Regulations. 470. As at the end of October 31. Alliance.218. 1.050 million.350 million as at the end of January 2003. UTI witnessed a slow and steady growth over seventies and eighties and by end of 1988 it had an AUM of Rs. sponsored by SBI. The mutual fund industry was opened up for private participation 1993 and a new era was ushered in.

160 million. the total of mutual fund reaches to 1. 2318620 million.management of about Rs. there were 29 funds. The MAJOR PLAYERS in the Indian Mutual Fund Industry are: GROWTH IN ASSETS UNDER MANAGEMENT .267. As the end of September 2004. But at the end of financial year (05-06) the total of Mutual Fund reaches Rs. which manage assets of Rs. 1531080 million under 521 schemes. As at the end of March 04.396.260 million. 1.

At the end of 1993. public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LlC) and General Insurance Corporation of India (GIC).6. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. Bank of Baroda Mutual Fund (Oct 92). THIRD PHASE 1993. SECOND PHASE -1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS) 1987 marked the entry of non. Bank of India (Jun 90). SBI Mutual Fund was the first non. at the initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can be broadly divided into four distinct phases FIRST PHASE . Punjab National Bank Mutual Fund (Aug 89). 004 crores.UTI. The first scheme launched by UTI was Unit Scheme 1964. 700 crores of assets under management.HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY The mutual fund industry in India started in 1963 with the formation of Unit Trust of India. LlC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1988 UTI had Rs.1964-87 An Act of Parliament established Unit Trust of India (UTI) on 1963. Indian Bank Mutual Fund (Nov 89).UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87).47. the mutual fund industry had assets under management of Rs. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (lOBI) took over the regulatory and administrative control in place of RBI.1996 EMERGENCE OF PRIVATE FUNDS .

FIFTH PHASE . Quite significantly. 1996. foreign fund management companies were also allowed to operate mutual funds. Similarly the Budget of Union Government in 1996 took a big step in exempting all mutual funds dividends from income tax in the hands of investors. 2. These regulations set uniform standards for all funds. This gave the Indian investor a broader choice of fund families and an increasing competition to the existing public sector funds. FOURTH PHASE . investment management techniques and investor servicing technology that make the Indian mutual fund industry today a vibrant and growing financial intermediary.1999-2004: EMERGENCE OF LARGE AND UNIFORM INDUSTRY The other major development in the fund industry has been the creation of level playing . These private funds have brought with them the latest product innovation.1996-1999: GROWTH AND SEBI REGULATION Since 1996 the mutual fund industry in India saw tighter regulation and higher growth. The steadily improving performance of several funds houses. both SEBI and AMFl launched investor awareness programmed aimed at educating the investors in investing through mutual funds.A new era in the Mutual Fund industry began in 1993 with the permission granted for the entry of private sector funds. Investors now clearly saw the benefits of investing through mutual funds and became discerning and selective. It scaled new heights in terms of mobilization of funds and number of players. The development of SEBI. A comprehensive set of regulation for all mutual funds operating in India was introduced with SEBI Regulation s. During this phase. Measures were taken by SEBI to protect the investor and by the Government to enhance investor's returns through tax benefits. The factors that contributed to greater inventor’s confidence were: 1. s regulatory framework for the Indian mutual fund industry. .

. SIXTH PHASE . Between 1999 and 2005. 150. This happened in February 2003. As at the end of September 2004. which have gone from about Rs.2004: CONSOLIDATION AND GROWTH The industry has lately witnessed a spate of mergers and acquisitions. which manage assets of Rs. most recent one being the acquisition of schemes of Alliance Fund by Birla Sun Life etc. more international players continue to enter India . when the UTI Act was repealed . Within the growing industry relative market shares of different players in terms of amount mobilized and assets under Management has also undergone changes.UTI no longer had a special legal status and had to adopt the same structure as any other fund in India -a Trust and an Asset Management Company. the size of the industry has doubled in terms of assets under management.000 crores.The mutual fund industry has entered its current phase of consolidation and growth. At the same time.153108 crores under 421 schemes. 6800 to over Rs. there were 29 funds.field for all mutual funds operating in India.

. The table below gives an overview into the existing types of schemes in the Industry. risk tolerance and return expectations etc.TYPES OF MUTUAL FUND SCHEMES Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position.

which are declared on a daily basis. . Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices. 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 the units are listed. • • Fund is open for subscription only during a specified period at the time of launch of the scheme. Some funds offer repurchase after a fixed period. For example. UTI MIP offers a repurchase after 3 years. • • • Investors are not allowed to buy or redeem the units directly from the funds. BY STRUCTURE: OPEN-ENDED FUND/ SCHEME • • • • • • Available for subscription and repurchase on a continuous basis. Units’ maybe traded at a discount or premium to NAV based on investor’s perception about the funds future performance and other market factors. 5-7 years. Fund size and its total investment go up if more new subscriptions come in than redemptions and vice-versa.TYPES OF MUTUAL FUNDS SCHEMES : Mutual fund schemes may be classified on the basis of its structure and its investment objective.g. The key feature of open-end schemes is liquidity. These schemes do not have a fixed maturity period. CLOSE-ENDED FUND/SCHEME • Stipulated maturity period e. Unit capital of the fund is not fixed but variable.

They also trade according to market demands. When a mutual fund closes. have a fixed number of shares. when a mutual fund closes to new investors it does not make it a closed-end fund. closed-end funds have an IPO. Much like a new publicly traded stock. Closed-end funds. meaning they can be sold for more than their NAV. • • . also known as mutual funds. meaning they are trading below their NAV. on the other hand. However.DIFFERENCE BETWEEN OPEN-END AND CLOSED-END FUNDS Open-end funds. sell high. the fund shares could be trading at a discount or premium. Remember. • • DISADVANTAGES OF CLOSED-END FUNDS • As mentioned above. are open to new investors (they can create as many shares as needed). Closed-end funds can sometimes be sold at a premium. Every seller must have a buyer. Closed-end funds have access to some investments and strategies that mutual funds shy away from. buy low. it still allows current investors to buy more shares and when those investors want to sell their holdings. Examples include buying illiquid securities or using leverage. they don't need to find a buyer. which could work against you. ADVANTAGES OF CLOSED-END FUNDS • Closed-end funds can sometimes be purchased at a discount. Closed-end funds are plagued with broker trading fees. Closed-end funds are generally riskier.

Unlike mutual funds. INTERVAL FUNDS. the shares are not redeemable (meaning the company does not have to buy the shares back) • • Closed-end funds tend to charge between 1-2 percent a year for management fees. • Some funds allow fresh subscriptions and redemption at fixed times every year (say every six months) in order to reduce the administrative aspects of daily entry or exit. open-end funds attract better management talent because they can grow by attracting new investors over time.• Closed-end funds are less liquid. It has been proven that returns from stocks. As a general rule. BY INVESTMENT OBJECTIVE: GROWTH FUNDS The aim of growth funds is to provide capital appreciation over the medium to longterm. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time. yet providing reasonable liquidity. Such schemes normally invest a majority of their corpus in equities. meaning they are much harder to sell. Closed-end fund price information is not always available. • These funds combine the features of both open–ended and close-ended funds wherein the fund is close-ended for the first couple of years and open-ended thereafter. . have outperformed most other kind of investments held over the long term.

Ideal for investors with a conservative and long-term orientation. Carry both credit risk and interest rate risks. convertible securities. Have a higher risk of default by borrowers as compared to Gilt funds. Debt funds can be categorized further based on their risk profiles. Objective is to gain income. . TYPES OF INCOME FUNDS  Diversified Debt Funds  Focused Debt Funds  High yield Debt Funds  Assured return Debt funds BALANCED FUNDS / HYBRID FUNDS Aim of Hybrid funds is to provide both growth and regular income as such schemes have a portfolio comprising of debt instruments. Have higher price fluctuation as compared to money market funds due to interest rate fluctuation.INCOME FUNDS • Invest in debt instruments issued not only by government. banks and financial institutions and other entities such as infrastructure companies/utilities. • • • Almost equal proportion of debt/money market securities and equities. Are best suited for the medium to long-term investors who are averse to risk and seek capital preservation. but also by private companies. and preference and equity shares. moderate capital appreciation and preservation of capital. Normally funds maintain a Equity-Debt ratio of 55:45 or 60:40. • • • • • • Target low risk and stable income for the investor and not capital appreciation.

Invest in Treasury bills issued by government.TYPES OF HYBRID FUNDS • • • Balanced funds. These funds are ideal for Corporate. It could be worth paying the load.flexible asset allocation between debt equity and Money Market MONEY MARKET FUNDS • • Invest in securities of short-term nature I. less than one-year maturity. Commercial Paper issued companies.seek to provide regular income and capital appreciation Growth income funds. Have emerged as an alternative for savings and short-term fixed deposit accounts with comparatively higher returns. • • • • • • Aim to provide easy liquidity. a commission will be payable. institutional investors and business houses LOAD FUNDS A Load Fund is one that charges a commission for entry or exit.e. High liquidity and safety of principal Low risk and low returns Period of investment could be as short as a day. That is. NO-LOAD FUNDS A No-Load Fund is one that does not charge a commission for entry or exit. That is. each time you buy or sell units in the fund. no . if the fund has a good performance history. preservation of capital and moderate income.seek to provide high dividend and capital appreciation Asset allocation funds. Certificates of deposit issued by banks. Typically entry and exit loads range from 1% to 2%. government securities and inter-bank call money.

The advantage of a no load fund is that the entire corpus is put to work. 2000. and Pharmaceuticals etc  Index Schemes Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50  Sectoral Schemes Sectoral Funds are those. which invest exclusively in a specified industry or a group of industries or various segments such as 'A' Group shares or initial public offerings. SPECIAL SCHEMES  Industry Specific Schemes Industry Specific Schemes invest only in the industries specified in the offer document.commission is payable on purchase or sale of units in the fund. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act. 1961. FMCG. . The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds. 2000 and the amount is invested before September 30. provided the capital asset has been sold prior to April 1. The investment of these funds is limited to specific industries like InfoTech. OTHER SCHEMES: TAX SAVING SCHEMES These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues.

availing of the interest rate swings is allpossible through the diversified or sector dedicated as well as Debt funds. As you would do with investing in the market directly. So today one doesn’t need Rs. 100.000 minimum to start investing in shares of sensex pivotal. Also diversification. One can invest in them for as little as Rs 1000. CHECK OUT THE MACROS Don’t just blindly look at every new float as an opportunity to invest. always keep the background in mind. perhaps you can wait to pick up the new float after it is listed rather than at the time of the offer. Against a turbulent background. and the funds are usually liquid. industrial growth. and liquidity position in the markets? Don’t be alarmed by all the economic jargon. sector concentration. the liquidity position is tightening. inflation is up. just a thorough read of the newspaper everyday will give you all this dope. An indication of this is the number and variety of funds offered by the issuers. as well as the depth of the market in terms of the secondary trading. . Mutual funds issuers have cast their nets wide by offering a plethora of instruments which aim to maximize returns while minimizing risk They offer the advantage of professionals managing your money. where the economy is in a downtrend. What are the current economic scenario.LOOK BEFORE INVESTMENT The mutual funds industry in India has also finally come of age.

SENSE OF THE SENSEX One of the cardinal rules of investing is getting the price right. Lastly.interest rates and bond prices are inversely proportional. you must check out the interest rate scenario. track record of the fund manager (if possible) and objectives of the particular scheme. So in case you are expecting a fall in the interest rates. Remember the basic rule . and then perhaps it will not be able to generate a positive momentum in its NAV. the other comes down.-overall economic scenario . What is the parentage of the Fund house proposing the issues what has been their past in terms of good management and reporting practices. dispatch of dividends and certificates etc? Their financial performance in terms of dividend and NAVs. i. specific service standards promised (like maximum time to be taken in mailing repurchase/redemption proceed). INTEREST RATES AND LIQUIDITY In case you are keen on a balanced or debt fund. or has it been steady. Time the market. as these prices may be difficult to reach again. look for investing in Debt funds (which have a medium to long term horizon). In case the sensex has been consistently on a high. it is time to check out the Micros. watch the sensex has it been rising or falling. Other aspects like availability of an exit route. they had all invested in the frenzy of the ICE age and have been caught on the wrong foot in the subsequent meltdown. the fund will invest your money into scrip’s at these high prices. which normally happens when the liquidity position is loose in the market. When one goes up. As we had mentioned earlier timing the market is the essence of success. See if the time is right to invest in equity funds. So.e. then remember. Look at the track record of the mutual fund under consideration. In case you are expecting a rise in the interest rates then look at Gilt funds (which have a shorter time horizon) or at balanced funds. Remember the InfoTech funds which today are quoting below par. CHECK OUT THE MICROS After a risky of the Macros.

8) In choosing mutual funds. 9) The next step is to identify which types of mutual funds match your investment goals investment goals. 6) Owning too many funds means you may be paying for active management when you really hold the market. time frame. 3) Before picking a mutual fund. And then decide which type of fund you want to invest in. your first task is to formulate your investment objectives and identify your time frame. and . For balanced funds to debt funds check out the interest rate scenario. sensex has been on the upswing but not necessarily peaking. overall sentiment is flat to good. POINTS TO REMEMBER BEFORE INVESTMENT : 1) People invest in mutual funds in order to achieve diversification without the time and cost of tracking hundreds of individual securities. 2) There is no ideal number of mutual funds to own.seems positive. consider your amount of investment capital. Have a look at the NAV performance of other funds floated in the same quarter. 5) Diversify among different investment styles to potentially reduce risk and increase returns. 7) Your investment adviser can help you evaluate each fund to determine its role in your portfolio. 4) Diversify among different asset classes to help reduce risk and potentially increase the rate of return of your portfolio.

(RCAM). 1996. 1995 and was amended on August 12. 1997 in line with SEBI (Mutual Funds) Regulations. the name of Reliance Capital Mutual Fund has been changed to -Reliance Mutual Fund). The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited. 1995. Pursuant to this IMA.e. a company registered under the Companies Act. ABOUT THE COMPANY RELIANCE CAPITAL ASSET MANAGEMENT LTD. 2005 is Rs. Reliance Mutual Fund has launched twenty five Schemes till date.f November 2003. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12. the sponsor. namely: Reliance Vision Fund . It is a wholly owned subsidiary of Reliance Capital Ltd.30. Reliance Capital Asset Management Limited was approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30. 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund (w. 10) Companies such as Crisil and dedicated websites provide statistical information on mutual funds. The net worth of the Asset Management Company including preference shares as on March 31. Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited. RCAM is authorized to act as Investment Manager of Reliance Mutual Fund.13 crores.and risk tolerance. Reliance Capital Asset Management Ltd.

as the Trustee. March 2004. Reliance Growth Fund (September 1995) Reliance Income Fund (December 1997). Reliance Medium Term Fund (August 2000). Reliance Media & Entertainment Fund (September 2004). Reliance Diversified Power Sector Fund (March 2004) Reliance Pharma Fund ( May 2004). March 2004 vide SEBI's letter no. 1882 with Reliance Capital Limited (RCL). Reliance NRI Equity Fund (October 2004). as the Settler/Sponsor and Reliance Capital Trustee Co. Reliance Monthly Income Plan (December 2003). Reliance Short Term Fund (December 2002). Reliance Gilt Securities Fund (July 2003). Reliance Fixed Term Scheme (March 2003). Reliance Banking Fund (May 2003). The name of Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund effective 11th. 1995. Reliance Regular Saving Fund (May 2005). Reliance Fixed Maturity Fund . The main objectives of the Trust are: . Reliance Fixed Maturity Fund . Limited (RCTCL).Series II (April 2005). Reliance NRI Income Fund (October 2004). IMD/PSP/4958/2004 date 11th. Reliance Floating Rate Fund (August 2004). Reliance Index Fund (January 2005). Reliance Liquid Fund (March 1998). Reliance Fixed Tenor Fund (November 2005) and Reliance Equity Fund (Feb 2006). RELIANCE MUTUAL FUND Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act. Reliance Liquidity Fund (June 2005). Reliance Tax Saver (ELSS) Fund (July 2005).(September 1995).Series I (March 2005). Reliance Equity Opportunities Fund (February 2005). RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30. 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 diversified securities.

) The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. • To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings and To take such steps as may be necessary from time to time to realize the effects without any limitation.) The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity & equity related securities of top 100 companies by market capitalization & of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities. RELIANCE TAX SAVER (ELSS) FUND (An Open-ended Equity Linked Savings Scheme. . • THE PRODUCTS EQUITY SCHEMES :RELIANCE EQUITY FUND (An open-ended diversified Equity Scheme.• To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unit holders.

with a view to endeavor to generate returns.) The Investment Objective under the Nifty Plan is to replicate the composition of the Nifty. The Investment Objective under the Sensex plan is to replicate the composition of the Sensex. with a view to endeavor to generate returns. RELIANCE INDEX FUND (An Open Ended Index Linked Scheme. which could approximately be the same as that of Sensex.) The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity related securities through a research based investment approach. RELIANCE NRI EQUITY FUND .RELIANCE EQUITY OPPORTUNITIES FUND (An Open-Ended Diversified Equity Scheme. which could approximately be the same as that of Nifty. RELIANCE GROWTH FUND (An Open-ended Equity Growth Scheme.) The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity securities & equity related securities and the secondary objective is to generate consistent returns by investing in debt and money market securities. RELIANCE VISION FUND (An Open-ended Equity Growth Scheme.) The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity related securities through a research based investment approach.

(An open-ended Diversified Equity Scheme.e.) The primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unit holders and the secondary objective is growth of capital RELIANCE SHORT TERM FUND . RELIANCE MEDIUM TERM FUND (An Open End Income Scheme with no assured returns. Monthly Income is not assured & is subject to the availability of distributable surplus) The Primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unit holders and the secondary objective is growth of capital. DEBT SCHEMES :RELIANCE MONTHLY INCOME PLAN (An Open Ended Fund. up to 20%) in equity.The primary objective of the Scheme is to generate Optimal credit risk-free returns by investing in a portfolio of securities issued and guaranteed by the central Government and State Government RELIANCE INCOME FUND (An Open-ended Income Scheme) The primary objective of the scheme is to generate optimal returns consistent with moderate levels of risk. Accordingly. This income may be complemented by capital appreciation of the portfolio. 80%) with a small exposure (i. Primarily the investment shall be made in debt and money market securities (i.e.) The Primary investment objective of the scheme is to generate optimal returns by investing in equity or equity related instruments primarily drawn from the Companies in the BSE 200 Index. RELIANCE GILT SECURITIES FUND (Short Term Gilt Plan & Long Term Gilt Plan Open-ended Government Securities Scheme) . investments shall predominantly be made in Debt & Money Instruments.

RELIANCE FLOATING RATE FUND (An Open End Income Scheme) The primary objective of the scheme is to generate regular income through investment in a portfolio comprising substantially of Floating Rate Debt Securities (including floating rate securitised debt and Money Market Instruments and Fixed Rate Debt Instruments swapped for floating rate returns). . investments shall predominantly be made in Debt and Money Market Instruments. RELIANCE LIQUID FUND (Open-ended Liquid Scheme). The primary investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. RELIANCE FIXED TERM SCHEME (Close-ended Income Scheme) The primary objective of the Scheme is to seek to achieve regular returns / growth of capital by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the plan with the objective of limiting interest rate volatility. This income may be complimented by capital appreciation of the portfolio. Accordingly. investments shall predominantly be made in debt Instruments.(An Open End Income Scheme) The primary investment objective of the scheme is to generate stable returns for investors with a short investment horizon by investing in Fixed Income Securities of short term maturity. Accordingly. Money Market Instruments and Floating Rate Debt Instruments swapped for fixed returns RELIANCE NRI INCOME FUND (An Open-ended Income scheme) The primary investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risks. The scheme shall also invest in Fixed rate debt Securities (including fixed rate securitised debt.

RELIANCE FIXED MATURITY FUND . investments shall predominantly be made in Debt and Money Market Instruments.RELIANCE FIXED MATURITY FUND . Hybrid Option: The primary investment objective is to generate consistent return by . Accordingly. Accordingly investments shall predominantly be made in Debt & Money Market Instruments.ENDED SCHEME) THE INVESTMENT OBJECTIVES: Debt Option: The primary investment objective of this plan is to generate optimal returns consistent with moderate level of risk.ended Liquid Scheme) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. This income may be complemented by capital appreciation of the portfolio.SERIES I (A Close Ended Income Scheme)The primary investment objective of the Scheme is to seek to achieve regular returns / growth of capital by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the Plan with the objective of limiting interest rate volatility. Equity Option: The primary investment objective is to seek capital appreciation and or consistent returns by actively investing in equity / equity related securities.SERIES II (A closed ended Income Scheme) The primary investment objective of the Scheme is to seek to achieve growth of capital by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the respective plans. RELIANCE REGULAR SAVINGS FUND(AN OPEN . RELIANCE LIQUIDITY FUND (An Open .

The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of media & entertainment and other associated companies.investing a major portion in debt & money market securities and a small portion in equity & equity related instruments. . RELIANCE PHARMA FUND (Reliance Pharma Fund is an Open-ended Pharma Sector Scheme) The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of Pharma and other associated companies. RELIANCE BANKING FUND Reliance Mutual Fund has an Open-Ended Banking Sector Scheme which has the primary investment objective to generate continuous returns by actively investing in equity/equity related or fixed income securities of banks. SECTOR SPECIFIC SCHEMES :Sector Funds are specialty funds that invest in stocks falling into a certain sector of the economy. RELIANCE DIVERSIFIED POWER SECTOR FUND Reliance Diversified Power Sector Scheme is an Open-ended Power Sector Scheme The primary investment objective of the Scheme is to seek to generate consistent returns by actively investing in equity / equity related or fixed income securities of Power and other associated companies. Here the portfolio is dispersed or spread across the stocks in that particular sector. RELIANCE MEDIA & ENTERTAINMENT FUND (Reliance Media & Entertainment Fund is an Open-ended Media & Entertainment sector scheme). This type of scheme is ideal for investors who have already made up their mind to confine risk and return to a particular sector.

2.472 crore. which aims at minimizing the downside risk. And markets may fall. The investment strategy being that even if the markets go down. A diversified equity fund with derivative strategies that aim to minimize risk and take advantage of both the rising and falling market conditions. It has replaced the 14-year-old record of the UTI Mastergain IPO. The recent record mobilization in any equity fund was Rs. the fund has a part of its portfolio hedged. The Reliance Equity Fund aims to capitalize on both the rising and falling markets. NFO collection ever in the history of the Indian mutual fund industry. Mastergain had garnered Rs.SALIENT FEATURES : § Record collection of over Rs. Because markets may rise. 5700 crore from over 9. 2008: The recently concluded Reliance Equity Fund NFO has created history with collections of over Rs.29 Lac applications. striking just the right chord amongst the investor community. March 14. Backed by a huge marketing push. 4. the Reliance Equity Fund was launched at a time when the markets were at an all time high and there was a need for such an innovative product.855 crore mopped up by SBI Mutual Fund in its Blue Chip Fund that closed this January. Went the advertisements. The fund has received a tremendous response from investors across the length and breadth of the country. The fund will not only use hedging techniques to limit the downside risk but will also try & capitalize on short selling opportunities to generate additional returns for the investors § Highest .29 lac applications. the Reliance Equity Fund NFO collection is the highest ever in the 42-year history of the Mutual Fund industry in the country. 5700 crores from over 9.

BOARD OF DIRECTORS & MANAGEMENT TEAM • Board of Directors • • • • • Amitabh Jhunjhunwala Amitabh Chaturvedi Kanu Doshi Manu Chadha Management Team • • • • President Vikrant Gugnani Chief Investment Officer K.Rajagopal Head Equity Investments Madhusudan Kela Equity Fund Managers • Equity Fund Manager .

Ashish N Mehta • Equity Fund Manager Sunil B. Singhania • Equity Fund Manager Ashwani Kumar • Equity Fund Manager Shailesh Raj Bhan • Debt Fund Managers Head Fixed Income : Amitabh Mohanty • Debt Fund Manager Amit Tripathi • Debt Fund Manager Ramesh Rachuri • Debt Fund Manager Prashant Pimple • • Head Of Departments Brand and Communication Abraham Alapatt • Finance and Accounts Amit Bapna .

Himanshu Vyapak Devendra Daga Gurbir Chopra .• Human Resource Development Rajesh Derhgawen • Information Technology Vinay Nigudkar • Legal & Compliance Balkrishna Kini • Operations & Settlement Geeta Chandran • • • • Product Management Ramaswamy Subramanian R&T operations Prashanth D Pereira Risk Management Sangya Nigam Sales and Distribution Sundeep Sikka ZONAL HEADS Northern Zone Head Western Zone Head Eastern Zone Head THE SPONSORS.

Gujarat. District Jamnagar 361280 . The objective of the research is to study and analyze the awareness level of investors of mutual funds through Reliance Mutual fund . is a wholly owned subsidiary of Reliance Capital Limited. service. Padana Taluka Lalpur. liquidity. OBJECTIVES OF THE STUDY 1. Mumbai . the sponsor. Village Meghpar. An attempt has been made to measure various variable’s playing in the minds of investors in terms of safety. 2.400033. 3. Fosbery Road. The entire paid-up capital (100%) of Reliance Capital Asset Management Ltd is held by Reliance Capital Ltd. Old ICI Godown. . returns. To measure the satisfaction level of investors regarding mutual funds. tax efficiency.RELIANCE CAPITAL LIMITED Registered Office Reliance Capital Ltd. Reliance Capital Asset Management Ltd. Corporate Office Reliance Capital Ltd. Off Reay Road Station (East).

Such framework is called “RESEARCH DESIGN”. A.RESEARCH METHODOLOGY My research project has a specified framework for collecting the data in an effective manner. DEVELOPING THE RESEARCH PLAN : The development of Research Plan has the following Steps : DATA SOURCES . The research process which was followed by me consisted following steps. B. PROBLEM: The problem at hand was to study and measure the awareness level of people regarding mutual funds in the city.

Books. The secondary data has been used to make things more clear. A Questionnaire consisting a set of questions was presented to respondents for their answers. technology including personal interviewing. b. Secondary data & primary data. Secondary Data: Indirect collection of data from sources containing past or recent past information like Bank’s Brochures. Contact Methods : I have contacted the respondents through personal interviews. Primary Data: Direct collection of data from the source of information. c. My major emphasis was on gathering the primary data. i. I have collected the information from the respondents with the help of questionnaire ANALYZE THE INFORMATION . RESEARCH INSTRUMENT A close friend questionnaire was constructed for my survey. Sample Size: The sample consisted of 50 respondents. COLLECTING THE INFORMATION After this.Two types of data were taken into consideration i. The sample was drawn from walk in customers of Reliance Mutual fund. Sampling Unit: I have completed my survey in Yamuna Nagar District . a.e. ii. survey etc. Annual publications. SAMPLING PLAN The sampling plan calls for three decisions. Newspaper & Magazines etc. The selection of the respondents was done on the basis of simple random sampling.

• Since a smaller sample was chosen so it may not be a true representative of the population under study. LIMITATIONS • Due to paucity of time and resources a countrywide survey was not possible. Hence only Yamuna Nagar district has been taken for the study. frequencies & percentages were prepared to render impact of the study. Thus the whole data was grouped aspect wise and was presented in tabular form. Thus. I have tabulated the collected data & developed frequency distributions.The next step is to extract the pertinent findings from the collected data. .

The possibility of the respondent’s responses being biased cannot be ruled out.

RELIANCE MUTUAL FUND,

SALES OPERATIONS
o INHOUSE IFA’S

o KARVY BACKEND SERVICE

BANKSPRIVATE BANKS PUBLIC SECTOR BANKS

OPERATIONS AND CUSTOMER SATISFACTIONS
IMPORTANCE OF OPERATIONS AND CUSTOMER SATISFACTION What makes service industry so distinct from manufacturing ones is their immediacy. Balancing the supply and demand sides is not easy. Services are direct; they cannot be inventoried. The perishability of services leaves the manager without an important buffer that is available to manufacturing managers. Whereas the consumption of goods can be delayed, as a general rule services are produced and consumed almost simultaneously. There is a high degree of producer consumer interaction in the production of service, which is a mixed blessing; on the one hand, consumers are a source of productive

capacity, but on the other, the consumer’s role creates uncertainty for managers about the process’s time, the product’s quality, and the facility’s accommodation of the consumer’s needs. Operations form the spinal cord, which supports the organization. It not only helps in saving huge amount of hidden cost but it also generates huge amount of profit as in the process of handling queries it creates a sale. Furthermore, it supplies adequate information to each and every person associated with the organization. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes.

CUSTOMER RELATIONSHIP

Barnes’ 4 R’s
Customer Retention Customer Referrals Customer Relationships Recovery

Custome r Satisfact ion

Custome r Retentio n& Increase d Profits Employe e Loyalty

Quality services

INHOUSE

His signature.. . Hyderabad & send cheques to HDFC bank.• • • • • • • • • • Receiving of applications from different brokers. Applications. post-dated cheques or incomplete bank details.m. Scrutinize the applications for investor’s Bank Account no.. When customers apply in particular fund then they receive statement next day. KARVY BACKEND SERVICE • • • • Receive applications from our office after 3 p. Keep all record of rejection of cheques for future references. Rejection can be arise by mis-matching of signatures. Address. The respective amounts are credited into the bank accounts of various schemes of Reliance Mutual fund. At the time of punching. Cheques are then send to respective Bank. keep all record & then send to near Karvy Branch.m. one on the backside of the cheque & the third stamp is for the purpose of customers on acknowledgement. if related to liquid funds then we do all punching. A DTR (Daily Transactions Record) prepares to keep a track of the transactions. Make sure the cheque is not post-dated & it should be of local clearing with customer’s signature. Broker’s code. one should be on application form. Applications. it should be noted that the punching machine releases the same stamp. if related to non-liquid funds then we only put time punching on that & send to the Registrar Karvy Branch. & then Karvy put data punching in K-BOLT (Karvy Branch Online transactions) Send scan image or hard copy of transactions & DTR report to Karvy Head Office. Banks & investors directly before 3 p. Out of these. HDFC bank give report about the clearance or rejection of the cheques to Karvy. Pan no.

Karvy Head Office sends all record to Reliance Head Office. The foremost was how one can improve the systems to help the individual working at the reception to minimize his time in searching for things like papers.• • • If cheque clears then the respective amount credited into bank accounts of various schemes of Reliance Mutual Fund. SALES . Operations required a lot of observation and involvement in the day-to-day working and grasping things rapidly. and thereby maximizing time with the investor by assisting him promptly and efficiently which is only possible if things are organized. files etc. The major areas of Queries by: INVESTORS • • • • • Non receipt of statements Corrections in the details in the statement Problem in SIP/STP Non-receipt of dividend cheques Non-receipt of redemption amount BROKERS • • • • Delay in brokerage No updation of Broker’s code in switch transactions. Wrong updation of Broker’s code No information about rejection. Mumbai.

. This is especially true in business-to-business selling situations where the amount of promotional expense allocated to support a sales force far exceeds expenses for advertising.Jim Rohn Selling is a highly misunderstood profession. which involved right from learning about the basic . Salespeople whose goal is to just get the sale and not worry about the customer satisfaction are doomed to failure. If you stand still. successful selling requires the establishment of strong relationships with customers. instantly use terms such as pushy. Professional selling requires knowledge and skills that must be learnt over time. or some other unkind adjective. If you make an investment of time and good service In a customer. Yet professional selling is not what most people think. Many people. During my training with Reliance Mutual Fund. when asked what they think of salespeople.In business. Also. Knudsen If you make a sale you make a living.William S. initially I was given an overview of the entire working of the organization. they will swallow you. . the competition will bite you if you keep running. relationships that are intended to last for a long time. greedy. you can Make a fortune. Professionally trained salespeople are among the most important individuals within many companies.

• • • • Improves communication skills.Last but not least position of the funds in the market vis-à-vis competitors. sales channel of Reliance mutual fund includes: .performed operations. Developing and maintaining relationships As u know.Past track record of funds .Load structure .Features available . PRODUCT TRAINING : The first phase of my training involved understanding and learning about the products as offered by Reliance Mutual Fund. My learning involved a core understanding on: . Organizing skills are also developed. An activity such as Direct Sales infuses selling confidence.Investment objective . Lead generation and materializing sales.Type of schemes . maintaining relationships with the distributors and that with the banks.Plans & options . I also got the opportunity to interact with the industry and do direct selling to Individual customers as well as corporate customers. The fund house offers a varying range of funds in equity as well as debt.

He has achieved success in this regard to a huge extent. Also told them. Making the aware of the risk & profit margin regarding schemes. if they start doing a business of 5 lakhs in a month. I was given the responsibility to activate such distributors for RMF (Chandigarh). I visited to their office personally if required.The distributions houses generate a huge chunk of business for any fund house. But I did it very passion sly. Hence it is very essential for the fund house to maintain healthy working relationships with the distributors. that was either in the form of low business or irregular business. But there were certain distributors. So there. Moreover a distribution house is an agent of mutual funds of a number of fund houses. While my training. Called them to come our office on tea for meeting & discussion Company also offers a surprise gift to them. IFA (Individual financial Agents) channel. which needed to be revived in terms of the business that they were generating for the fund house. It was very good. • • • • • • • . my duty was to call them or visit individually but have to make generate business from them. Same is the case with Reliance Mutual funds. he gave me seven distributors name and address that are not giving good business to the company. Send daily NAV sheet to them by SMS or through Email so that they make comparison between our funds & others funds. they can make investments in SIP rather than lump sum amount. Rominder Singh. Complete product training to the direct selling agents of the distribution house. interesting and challenging one for me. Hence. Sometimes. which generate a decent size of business from the distributors. which is handled by Mr. Try to make clear picture about other mutual funds also. MY ROLE • • Call them daily & try to make aware about our schemes. if they face any problem.

OF S. . The bank relationship here at Reliance Mutual Funds (Chandigarh). which generates a decent size of business from the banks.S. handled by Mr.R. that was either in the form of low business or irregular business. NAME OF DISTRIBUTORS 1 2 3 4 5 6 7 OUTCOME • TOTAL BUSINESS GENERATED 20000 2000(SIP) 1500(SIP) 3500(SIP) 5000(SIP) 22000 15000 APP. INVESTORS BAJAJ CAPITAL Daily average applications from these distributors picked up from 21 to 35 in span of 3 weeks. LTD R. Same is the case with Reliance Mutual Funds. Hence. 4 2 3 4 4 4 3 MASTER TRUST KARVY VIKSON INVESTMENTS INNOVATIVE CONSULTANTS B. Nishant Mahajan (Territory Manager). High level of motivation achieved.D. I was given the responsibility to activate such branches for Reliance Mutual Fund (Chandigarh).The following are the results of various distributors. Hence. Vinay Khera (Branch Head) & Mr. Moreover a bank is a distributor of mutual funds of a number of fund houses. NO. They achieved success in this regard to a huge extent. Training of new relationship manager to these location Increasing in visibility • • • BANKS & CORPORATES The banks generate a huge chunk of business for any fund house. which needed to be revived in terms of the business that they were generating for the fund house. But there were certain bank branches. it is very essential for the fund house to maintain healthy working relationships with the bankers.NO.

Makes the sales manager or financial advisors aware of the latest offers and news from RMF. Sec. 3 3 4 4 3 TOTAL BUSINESS GENERATED 20000 2000(SIP) 1500(SIP) 22500 5000(SIP) 4 PKL 5 HDFC BANK. My job further extended to collect new database of customers for them. 11 NO.32 CHD INDUSIND BANK.MY ROLE They instruct to look after the five banks. handling customers queries on the mutual funds and at some branches reviving existing customers for making in further investments. 9 CHD UTI BANK. PH. which were not performing business. The following are the results of various banks: NAME OF BANK S. 7 MOHALI OUTCOME • Daily receive applications from these banks picked up from 15 to 23 in span of 3 weeks. Sec. Sec. OF APP.NO. I did various following steps to generate business: • • • • • • Complete product training to the direct selling of the agents of the banks Makes the sales manager aware of the risk & profit margin Send daily NAV sheet of our schemes by SMS or through EMAIL Try to make clear information about others Mutual Fund house also Done meeting with them to reduce their doubts. High level of motivation achieved Training of new Territory Manager to these location Increasing in visibility • • • . Sec. 8 CHD CPOB BANK. 1 2 3 BRANCHES PNB BANK.

there was exhibition. and then I make them aware (what is risk & profit) and later on. 4 customers invested in SIP & 4 invested in lump sum. 8 investors invested in various schemes. I attended 30 customers.While my training. some of them don’t know about mutual fund. OPERATIONS AT RELIANCE MUTUAL FUNDS. Collections of funds by investments done by Investors directly Through brokers Through bank agents . which was held in Hotel Shivalikview in which I had to promote SIP of various schemes related to equity.

The respective amounts are credited into the bank accounts of various schemes of reliance mutual fund The collected amount is then informed to the fund manager who utilize that amount accordingly The fund managers utilize the amount keeping aside the amount required for redemption.Applications submitted before 3’o clock are time stamped A daily transactions report of the stamped applications is prepared to keep a track of the transactions taking place on daily basis Collected applications are then send to karvy All the necessary data is entered for each and every application The cheques are then submitted in the HDFC bank. OBJECTIVES: . After performing a quality check statements are sent to the investors. minimize the negative effects of customer dissatisfaction and to identify and review company’s structural and process weaknesses. The hard copy of applications is sent to the head office of the registrar (karvy) that is in Hyderabad where managers do a quality check for every application. COMPLAINT MANAGEMENT MODULE :The general aim of a complaint management system is to restore customer satisfaction.

As in the future the differentiating point between products and services is going to be how customers are handled effectively and timely.  Implementation and clarification of a customer-oriented company strategy.  Reduction of internal and external error costs. It is created to ensure customer delight. This module is created as user friendly and keeping in mind the above objectives on an excel sheet. Restoring (complaint) satisfaction. COMPLAINT LOGBOOK FORMAT :- Complaint Serial # Date Name of the Person Calling Contact # Address (if required) .  Analysis and usage of complaint information.  Influencing word of mouth communication.

ARE YOU AWARE OF THE MUTUAL FUND SCHEME BEING OFFERED BY VARIOUS INSTITUTION? YES NO 100% 0 .Email Address (if Required) Fax #(if required) Name of the Client Folio # Contact # Address (if required) Email Address (if Required) Fax #(if required) Nature of Complaint If any Other Please Mention Consignment #(if required) Name of the Person Contacted for Resolving the Problem Contact # Action Taken If any Other Please Mention Resolved If Unresolved Please Mention Reason GRAPHICAL PRESENTATION Q.

Q.Response of Awareness amonf the investors 150% 100% 50% 0% YES 0 NO 100% Series1 INTERPRETATION According to the respondents taken by me for my research all of them are aware about the mutual funds offered by various institutions. ARE YOU INVESTING IN THEM? 100 Y E S NO 0 . IF YES .

Q. OUT OF THE FOLLOWING IN WHICH MUTUAL FUND YOU ARE INVESTED? NAMES PERCENTAGE .% of Investors 120% 100% 80% 60% 40% 20% 0% 100% 0 YES NO INTERPRETATION According to the respondents taken by me all of them are invested in mutual funds.

10% in SBI and 4% in ICICI prudential. 32% invest in reliance due to its goodwill . Q.TATA MUTAL FUND 14% FRANKLIN TEMPLTON 40% RELIANCE 32% ICICI PRUDENTIAL 4% SBI 10% OTHER - % of investors in various mutual fund companies 0% 10% 4% 32% 14% TATA MUTAL FUND FRANKLIN TEMPLTON RELIANCE ICICI PRUDENTIAL 40% SBI OTHER INTERPRETATION According researcher sample size 40% investor invest in franklin templeton because it’s a very old company and having good market experience. WHICH FACTOR INFLUENCES YOU MOST TO INVEST IN MUTUAL FUNDS Factors Percentage .

24% investors choose safety. .14 % of the investors choose high returns as the important factor and 12% of investor choose because of less risk. 34% of the investors preferred liquidity as the most important thing.16% of the investors think that tax benefit is the most important factor . most of respondents chose liquidity as the most important factor. Above all one thing is there that all the above factors are very important. An investor keeps in mind all the factors while investing.Less Risk 12% High Returns 14% Liquidity 34% Safety 24% Tax benefit 16% Factor responsible for the invest 40% 30% 20% 12% 10% 0% Series1 34% 24% 14% 16% Percentag e of Responde nts Less 12% High 14% Liquidi 34% Safety 24% Tax 16% Factors Responsible INTERPRETATION When asked that what factor affect most while investing in Mutual Funds.

Most of the investors prefer to invest for 1 to 5 years.Q. WHAT IS YOUR INVESTMENT ? AVERAGE TIME HORIZON OF Percentage Time-Horizon 6 mon – 1yr 26% 1 yr – 3 yr 40% 3 yr – 5 yr 10% More than 5 yr 4% % of investors average time 50% 40% 30% 20% 10% 0% 40% 26% 10% 4% More than 5 yr 6 mon – 1yr 1 yr – 3 yr 3 yr – 5 yr INTERPRETATION Of the total respondents considered for the survey. 26% invest for a time period of 6 month to 1 year. Only 4% invest for more then 5 years. Very few invest for more then 5 years. . About 40% invest for 1 to 3 years and about 10% invest for 3 to 5 years.

investors are taking risk. . WHICH SCHEME WOULD INVESTING IN MUTUAL FUNDS ? YOU PREFER WHILE Various Schemes Percentage Debt 14% Equity 56% Balanced 30% % of investors preference in various Mutual fund schemes 14% Debt Equity Balanced 56% 30% INTERPRETATION As the market conditions have changed. 30% prefer investing in balanced funds and only 14% of the investors invest in debt funds. 56% of the investors invest in pure equity funds.Q.

Q. OUT OF THE FOLLOWING WHICH OPTION WOULD YOU PREFER? Open ended 74% Close ended 26% 26% Open ended Close ended 74% INTERPRETATION 74% Investors opt open ended because this option will increase the level of liquidity and 26% investor opt close ended option. .

Around of the investors prefer SIP at this stage of market.Q DO YOU PREFER SIP (SYSTEMATIC INVESTMENT PLAN) OR INVESTING LUMP SUM ? FACTOR PERCENTAGE SIP 48% Lump sum 36% Depends upon financial conditions 16% 16% SIP 48% 36% Lump sum Depends upon financial conditions INTERPRETATION It depends upon the availability of funds that whether an investor should opt for SIP or lump sum. 36% the investors .

16% of the investors said it depends upon the availability of funds.prefer investing lump sum. WHICH FACTOR INFLUENCE YOU MOST TO INVEST THROUGH RELIANCE MUTUAL FUND ? FACTORS PERCENTAGE RELIANCE SERVICES 20% SAFETY 42% WORD OF MOUTH 14% ADVERTISEMENT 6% PAST EXPERIENCE 18% RELIANCE SERVICES SAFETY WORD OF MOUTH ADVERTISEMEN T 42% PAST EXPERIENCE 18% 6% 14% 20% INTERPRETATION . Q.

Q.18% past experience . TO HOW MUCH EXTENT ARE YOU SATISFIED WITH THE SERVICES OFFERED BY RELAINCE ? 80% EXTREMELY SATISFIED SATISFIED TO LESSER EXTENT 10% DISSATISFIED TO LESSER 5% EXTENT EXTREMELY DISSATISFIED 5% % OF INVESTORS SATISFACTION 5% 5% 10% LEVEL EXTREMELY SATISFIED SATISFIED TO LESSER EXTENT DISSATISFIED TO LESSER EXTENT 80% EXTREMELY DISSATISFIED .20% Reliance services .14% word of mouth and 6% advertisement. 42% investors choose safety.When asked that what factor affect most while investing in Mutual Funds through Reliance Mutual fund than wide preference is given to safety.

5%are extremely dissatisfied.10% are satisfied to lesser extent . AS EQUITY MARKET IS GROWING WHAT ACCORDING TO YOU IS THE FUTURE OF MUTUAL FUNDS? DEGREE Very strong Strong Moderate PERCENTAGE 35% 50% 15% 15% 35% Very strong Strong Moderate 50% .INTERPRETATION Out of the respondents 80% are extremely satisfied with the services offered by Reliance Mutual fund . Q.

35% of the investors say that future is very strong. This would not only result in cost efficiency for the registrar but also in better management in giving cheques to the customers. the registrar from Hyderabad releases the respective cheques. • Non-receipt of dividend cheques is a major issue with the customers. • One way to combat this problem is by having tie-ups with more number of banks regarding direct credit facility. it results in loss of trust of the customers that might further lead to spreading a bad word of mouth about the organization. During this procedure at times the cheques get misplaced leading to inconvenience to the customer. Also it would help in reverting back to the customer query more quickly and efficiently. • Whenever the management declares dividend. Hence a provision should be there so that the cheques of a particular AMC should reach that AMC only. Hence a board displaying the NAV’S should be put up at the front desk itself so that it would save the time of the person at the reception and he could focus on other queries of the customers. Due to lack of communication regarding the status of their query. RECOMMODATION INCREASING CONSUMER PARTICIPATION • One of the most frequently asked queries by the customers is the current NAV’S. .INTERPRETATION As Indian equity market is growing the future of mutual funds is very bright. 50% of the investors say that future is strong and only 15% said that future is moderate. This would help us in saving time and tracking the query more efficiently and providing quick services to the customers.

As a result of which most of the times one lost track about the status of the query. Brokers should receive their brokerage by monthly. FINDINGS • • • Not send NAV sheet to their regular bankers. • Brokerage problems arise because of quarterly basis.• The major problem that I encountered over here was that most of the complaints of the customers went unregistered. Payment schedule should be changed. which is not good for any organization. as a dissatisfied customer would spread a bad word of mouth. Not having the proper record of their meeting with the financial consultants of banks Problem of not receiving the brokerage on time . Due to large number of investors it becomes very essential for a complaint logbook.

com www.reliancemutual.com www.amfiindia. July 2006 Marketing Management – Philip Kotler howhohiow .com www.BIBLIOGRAPHY WEBSITES: • • • • • www.rbi.google.org BOOKS & MAGAZINES: • • Business world.valueresearchonline.com www.

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