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Documentos de Profesional
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ON
rbs
RAI BUSINESS SCHOOL
MADURAI KAMARAJ UNIVERSITY,BHOPAL
YEAR : 2008-2010
PREFACE
2
ACKNOWLEDGEMENT
PRAVEEN KUMAR
MBA 2nd Semester
Rai Business School
Bhopal
3
CERTIFICATE
This to certify that Ms. PRAVEEN KUMAR,M.B.A II
Semester ,Rai Business School BHOPAL,Madurai
Kamaraj University has done project on “Reliance
Money “and has successfully completed his project on
“Reliance Mutual Fund “
This report is completed under my supervision .It is
only for academic purpose and is a bonafide work done
by researcher .
Project Guide
Mrs. Srishti Sharma
FACULTY
Rai Business School,BHOPAL
4
DECLARATION
I Priyanka Asati do here by declare that the project
work entitle on the “reliance mutual Fund in India”at
Bhopal is the original work done by me .
PRAVEEN KUMAR
MBA 2nd semester
Rai business School
Bhopal
CONTENTS
5
1. INTRODUCTION 8
2. COMPANY PROFILE 15
3. COMPETITORS OF RELIANCE MONEY 37
4. NEED FOR THE STUDY 39
5. OBJECTIVES OF THE STUDY 42
6. RESEARCH METHDOLOGY 43
7. DATA ANALYSIS AND INTERPRETATION 45
8. OBSERVATION 51
9. FINDINGS AND SUGGESTION 52
10.CONCLUSION 54
11.LIMITATION 55
12.BIBLIOGRAPHY 56
6
INTRODUCTION
7
INTRODUCTION
8
HISTORY
9
Mutual Fund Regulations
10
Types of MutualFunds Scheme in India
o Interval Schemes
• By Investment Objective
o Growth Schemes
o Income Schemes
o Balanced Schemes
• Other Schemes
o Tax Saving Schemes
o Special Schemes
Index Schemes
Sector Specfic
11
ADVANTAGES OF MUTUAL FUNDS
Diversification
The nuclear weapon in your arsenal for your fight
against Risk. It simply means that you must spread your
investment across different securities (stocks, bonds,
money market instruments, real estate, fixed deposits etc.)
and different sectors (auto, textile, information technology
etc.).
Tax Benefits
Any income distributed after March 31, 2002 will be
subject to tax in the assessment of all Unit holders.
However, as a measure of concession to Unit holders of
open-ended equity-oriented funds, income distributions for
the year ending March 31, 2003, will be taxed at a
concessional rate of 10.5%.
12
Regulations
Affordability
13
Features related mutual funds
14
COMPANY PROFILE OF
RELIANCE
15
RELIANCE INDUSTRIES LIMITED
16
Reliance's insurance operations constitute the
nation's 27th-largest property and casualty operation. The
parent company also includes a development subsidiary in
commercial real estate. Reliance's international consulting
group contains several subsidiaries in energy, environment,
and natural resources consulting. A financial arm invests in
other businesses, primarily television stations.
17
all real estate operations of the parent company and other
subsidiaries.
18
"Growth has no limit at Reliance. I keep revising
my vision.
Only when you can dream it, you can do it."
19
billion) andan investor base of over6.6 million
(Source:www.amfiindia.com).Reliance’s mutual
fundschemes are managed byReliance Capital
AssetManagement LimitedRCAM), a subsidiary of
Reliance Capital Limited,which holds 93.37% ofthe paid-
up capitalof RCAM.
The company notchedup a healthy
growth ofRs. 16,354 crore(US$ 4.09 billion)in assets under
management in February2008 and helped propelthe total
industry-wideAUM to Rs. 565,459 crore (US$ 141.36
billion)(Source: indiainvestments.com). A sharp rise
infixed maturity plans (FMPs) and collection ofRs. 7000
crore (US$ 1.75 billion) through newfund offers (NFOs)
created this surge. In AUrankings, Reliance continues to be
in thenumber one spot.
20
The Anil Dhirubhai Ambani Group owns Reliance; they are
the fastest growing investment company in India so far. To
meet the erratic demand of the financial market, Reliance
Mutual Fund designed a distinct portfolio that is sure to
please potential investors. Reliance Capital Asset
Management Limited manages RMF.
Schemes
21
Fund created proposals called The Equity/ Growth scheme,
Debt/Income Scheme, and Sector Specific Scheme.
22
GROWTH OF RELIANCE MONEY THROUGH
RECOGNITION
23
• Ranked 26th within the refining industry.
Reliance is ranked 182nd in the FT Global 500 (up from
previous year’s 284th rank).
• PetroFed, an apex hydrocarbon industry association,
conferred the PetroFed 2007 awards in the categories
of “Refinery of the Year” and “Exploration &
Production - Company of the Year”.
• Brand Reliance was conferred the “Bronze Award” at
The Buzziest Brands Awards 2008, organized by
agencyfaqs!
• Institute of Economic Studies conferred the “Udyog
Ratna” award in October 2007 for contributions to the
industry.
• Chemtech Foundation conferred the “Hall of Fame” in
February 2008 for sterling contributions to the
industry.
• Chemtech Foundation conferred the “Outstanding
Achievement - Oil Refining” for work at the Jamnagar
Manufacturing Division.
Petroleum Federation of India conferred the “Refinery of
the Year Award - 2007” to Jamnagar Manufacturing
Division
24
Plastic Polymers for the year 2006-2007 was awarded
to Reliance being the largest exporter in this category.
HEALTH:-
25
• Dhenkanal Manufacturing Division received the “2nd
Prize for Longest Accident Free Period” from the
Hon’ble Minister of Labour, State of Orissa.
• Hoshiarpur Manufacturing Division bagged the First
Prize in “Safety in Punjab”, organized by Punjab
Safety Council.
• Patalganga Manufacturing Division won the “Gold
Medal at CASHe (Change Agents for Safety, Health
and Environment) Conference”. It also won the III
Prize in Process Management category for
Presentation on Safety through Design in chemical
process industry in Petrosafe 2007 Conference.
• Kurkumbh Manufacturing Division won the
“Greentech Safety Award silver trophy” for
outstanding achievement in safety management in
chemical sector.
• Hazira Manufacturing Division received the “TERI
Corporate Environmental Award (Certificate of
Appreciation)” for PET recycling project.
26
• Jamnagar Refinery was adjudged the winner of the
“Golden Peacock National Training Award -2007”.
• Patalganga Manufacturing Division won the “ASTD
(American Society for Training & Development)
Excellence in Practice Award” for innovative practice
titled Learning Function’s role as Business partner:
Empowering people with Knowledge to achieve
Business Goals.
Reliance won the CNBC TV-18 instituted Jobstreet.com
Jobseekers’ Employer of Choice Award.
Energy Excellence:-
27
• Jamnagar Manufacturing Division was the recipient of
the “Infraline Energy Award-2007” by Ministry of
Power.
• Hazira Manufacturing Division won the Government
of India Energy Conservation Award (2007) conferred
by the Bureau of energy efficiency and Ministry of
Power.
• Hazira Manufacturing Division was adjudged
“Excellent Energy Efficient Unit” at Energy Summit -
2007 by CII.
Vadodara Manufacturing Division received the CII
award for “Excellence in Energy Management - 2007” as
energy efficient unit. This division also received the 2nd
prize in “National Energy Conservation Award –2007”
from Bureau of Energy efficiency, Ministry of Power,
Government of India.
The Company’s manufacturing divisions at Vadodara
and Hazira were honoured with CII-National award for
excellence in water management - 2007 as water
efficient unit in “Within the fence” category.
Additionally, Hazira Manufacturing Division was
honoured as water efficient unit “Beyond the Fence”
category.
Quality:-
28
• For the first time ever, globally, a petrochemical
company bagged the “Deming Prize for Management
Quality”. “The Quality Control Award for Operations
Business Unit 2007” was awarded to the Hazira
Manufacturing Division for Outstanding Performance
by Practicing Total Quality Management.
• “QUALTECH PRIZE 2007”, which recognizes
extraordinary results in improvement and innovation,
was won by Hazira Manufacturing Division for its
Small Group Activity Project.
• Vadodara Manufacturing Division’s Polypropylene-IV
(PP-IV) plant was conferred the “Spheripol Process
Operability Award-2006” for the highest operability
rate with an on stream factor 98.97% by M/s.
BASELL, Italy.
Allahabad Manufacturing Division won the “Excellent
Category Award” at National Convention of Quality
Circle (NCQC) - 07.
Six-Sigma:-
29
Six Sigma Project in International Six Sigma
Competition” organized by IQPC (International
Quality and Productivity center).
• Barabanki Manufacturing Division won the 3rd prize
in “All India Six Sigma case study contest 2008” for
the Case study on “Reduction of waste of Plant 2 from
16% to 8%”.
• Hoshiarpur Manufacturing Division won the 2nd prize
in “Six Sigma competition at National Level”
organized by ISI and Quality Council of India (in
manufacturing category), while Dhenkanal and
Barabanki Manufacturing Divisions won the 3rd prize.
Vadodara Manufacturing Division’s Six Sigma project
won the 1st prize as the “Best Six Sigma project” at
National level by CII.
30
• Patalganga Manufacturing Division’s Project titled
Augmentation of ETP and use of biogas in Fired
heaters won the “Best Innovative Project” from CII.
• Reliance bagged the “Innovation Award at Tech
Converge 2007” for innovative developments in short-
cut fibres.
Hazira Manufacturing Division won the “Golden
Peacock Innovation Award - 2007” for its Cyclohexane
Recovery Process.
Information Technology:-
31
“CTO Forum Hall of Fame Award” for the best CIOs in
India for not only providing service to their
32
(Exchange Traded Fund).Each taps into a specific audience
profile fulfilling their varying needs.Under the equity
category, Reliance has118 SUPERBRANDS sixteen
schemes with Reliance Growth Fundand Reliance Vision
Fund as its flagship schemes.Reliance Equity Opportunities
Fund is a schemewhich operates in the multi-cap/multi-
sectorsegment; Reliance Equity Fund is a long-shortfund,
Reliance Quant Plus Fund is a quant fund.Reliance offers
investments in banking, power,media, entertainment and
pharmaceuticals;Reliance Tax Saver Fund and Reliance
Equity-Linked Savings Fund – Series 1 are tax saving
schemes; an NRI-dedicated equity scheme is
tailored for non-resident Indians. RelianceRegular Savings
Fund is an asset-allocation fund with three options.Under
the debt and liquid categories, Reliancehas liquid funds,
liquid plus funds, income funds,an NRI-dedicated debt
fund, gilt funds, fixedmaturity plans and an interval fund.In
the hybrid category, Reliance Monthlyincome Plan is a
popular option
33
Central Bank of India, Allahabad Bank andfund houses
such as JM, DSP Merrill Lynch and Karvy in addition to a
massive infrastructure of direct financial investment
officers. Thisprodigious effort is supplemented by
thebrands’ captive network of 120 branch offices
and 30 financial centres. In the second prong, Reliance has
created a series of informationpacked presentations which
help dispel misinformationGroup.This mega business house
dominates this key area in the financial sector.Figures for
March 2008 show that it has emerged as the top Indian
mutual fund with average assets under management of Rs.
90,938 crore (US$ 22.73 billion) and an investor base of
over 6.6 million (Source:www.amfiindia.com).
Reliance’s mutual fund schemes are
managed by RelianceCapitalAssetManagementLimited
(RCAM), a subsidiary of Reliance Capital Limited,which
holds 93.37% of the paid-up capitalof RCAM.The
company notchedup a healthy growth ofRs. 16,354 crore
(US$ 4.09billion)inassetsunder management in
February2008 and helped propelthe total industry-
wideAUM to Rs. 565,459 crore(US$ 141.36 billion)
(Source: indiainvestments.com). A sharp rise infixed
maturity plans (FMPs)andcollection of Rs. 7000 crore (US$
1.75 billion) through new fund offers (NFOs) created this
surge. InAUMrankings, Reliance continues to be in
thenumber one spot.
34
long-short fund comes from Reliance Mutual Fund As at
31st May 2008, more than 6.6 million people had invested
in Reliance Mutual Fund;the investments comprised 16%
of the country’s entire mutual fund asset base.
Achievements
35
In two successive joint surveys by The Economic Times’
Brand Equity andACNielsen, Reliance was recognised as
India’s Most Trusted Mutual Fund.Thecompanyalsowalked
away with seven other scheme prizes – five of them being
outright winners – in the Gulf 2007 Lipper Awards.These
included the Fund House of the Year by Lipper GCC as
well asICRA Online and the Most Improved FundHouse
by Asia Asset Management.It also received the NDTV
Business Leadership Award 2007 in the mutual fund
category and runners’ up recognition as the Best Fund
House in theOutlook Money-NDTV Profit Awards. In
addition,the company received thecoveted CNBC Web18
Genius of the Web distinction for the Best Mutual Fund
Website inthe country. RCAM was awarded the India
Onshore Fund House 2008 instituted by theAsian Investor
magazine.The company also won the India Equities award
in the 5-yearPerformance category.
36
Company Profile of HDFC
HDFC BANK is one of the leading Depository Participant
(DP) in the country with over 8 Lac demat accounts.
37
form.
No concept of Market Lots.
Change of address, Signature, Dividend Mandate,
registration of power of attorney, transmission etc. can be
effected across companies held in demat form by a single
instruction to the Depository Participant (DP).
1. Investment Account
38
Along with stock trading and IPO investing in BSE and NSE,
Wise Investment account also provide options to invest in
Mutual Funds and Bonds online.
Reliance Money
Tax Saving funds Reliance Money:
Tax-saving funds (due to their equity-oriented
nature) are capable of clocking far superior returns their
assured return counterparts like National Savings
Certificate (NSC) and Public Provident Fund (PPF).
However investors must appreciate that the risk profile of
tax-saving funds tends to be proportionately higher.
Reliance Tax Saver (ELSS) Fund (RTSF) is the latest
entrant in the tax-saving funds segment. Flagship
diversified equity funds (Reliance Growth Fund and
Reliance Equity Fund) from Reliance Mutual Fund have
emerged as top performers in their segment across time
horizons. However investors should note that these funds
are managed aggressively; also they have displayed an
opportunistic streak by moving fluidly across market
39
segments (large caps, mid caps) to clock superior growth.
RTSF is likely to be a similar (high risk - high return)
investment proposition within the tax-saving funds
segment.
40
OBJECTIVE
41
To give an idea of the types of schemes available.
RESEARCH METHODOLOGY
42
Research as a care full investigation or enquiry specially
through search for a new facts in any branch of knowledge”
Research is an academic activity and such as the term
should be used in technical sense.The manipulation of
things , concepts or symbols for the purpose of
generalizing to extend ,correct or verify knowledge
,whether that knowledge through objective.
TYPES OF RESEARCH
ANALYTICAL RESERCH
43
Primary data: Primary data collect through observation ,or
through direct communication or doing experiments .
TOOLS OF ANALYSIS
44
Q.1 Which banking mutual fund do you prefer for mutual
Fund ?
25
20
15
10
0
Reliance HDFC ICICI
45
Reliance 22
HDFC 21
ICICI 7
25
20
15
10
0
RELIANCE HDFC ICICI
INTERPRETATION:
44% respondent for Reliance,32 %forHdfc,14% for ICICI
46
HDFC 15
ICICI 15
20
15
10
0
Reliance HDFC ICICI
INTERPRETATION:
40% respondent for Reliance,30 %forHdfc,30% for ICICI
47
Company Name Percentage of respondent
Reliance 18
HDFC 16
ICICI 16
18
17.5
17
16.5
16
15.5
15
Reliance HDFC ICICI
INTERPRETATION:
36% respondent for Reliance,32%forHdfc,32% for ICICI
48
HDFC 15
ICICI 13
25
20
15
10
0
Reliance HDFC ICICI
INTERPRETATION:
44% respondent for Reliance,30%forHdfc,26% for ICICI
49
ICICI
29% Reliance
41%
HDFC
30%
OBSERVATION
50
44% respondent for Reliance,32 %forHdfc,14% for
ICICI.
51
In Dedt scheme we have taken Reliance money Manager
Fund and Reliance Liquidty Fund .In it boths schemes are
open ended but reliance money manager is more beneficial
for reliance mutual fund .
SUGGESTION
52
• Advertisement on television is the main source of
attraction so the company must advertise its products
heavily.
• Product must be improved .
• There should be provision of complain suggestion
boxes at each branch.
CONCLUSION
53
A good brand is always welcomed over here people are
more aware and conscious for the brand so they go for they
are ready to spend some extra bucks for the quality .
54
Limitations
• The time constraint was one of the major problems.
• The study is limited to the different schemes available
under the mutual funds selected.
• The study is limited to selected mutual fund schemes.
• The lack of information sources for the analysis part.
BIBLIOGRAPHY
Websites:
www.reliancemoney.com
55
www.hdfc.com
www.icicidirect.com
Referencebooks:
•FINANCIAL INSTITUTIONS AND MARKETS -
L.M.BHOLE
•INVESTMENT MANAGEMENT - V.K.BHALLA
Research Methodology - Kothari
QUESTIONNAIR
Q.1 Which banking mutual fund do you prefer for mutual
Fund ?
• Reliance Money
56
• HDFC
• ICICI
57