a project report on need of financial advisor for mutual fund

2011-12
SUBMITTED BY
HABIB-UR-RAHMAN
SUBMITTED TO
RAJIV KAPOOR SIR
A PROJECT REPORT
ON
“NEED OF FINANCIAL ADVISOR IN MUTUAL FUND”

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TABLE OF CONTENT
S.No. PARTICULAR PAGE
NO.
1 Acknowledgement 3
2 Declaration 4
3 Certificate 5
4 Executive summary 6
5 Introduction 8
6 Company profile 17
7 Objectives and scope 37
8 Research methodology 39
9 Data analysis and interpretation 43
10 Findings and conclusions 55
11 Suggestions & recommendations 57
12 Bibliography 59

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ACKNOWLEDGEMENT
It is my proud privilege to express my sincere gratitude to all those who
helped me directly or indirectly in completion of this project report.
I am greatly thankful to Mr. DIVYADITYA KOTHARI (Director RIBS) and
MR. RAJIV KAPOOR (Dean RIBS) for his support, guidance and valuable
suggestion by which this work has been completed effectively and efficiently.
I also very thankful to Mr. PRASOON JAIN(Cluster head of RMF),MISS
AMRITA SHAHI (RM OF RMF)Mr. AKASH MAHAKALKAR (RM OF
RMF) and all other reliance mutual fund relationship managers whose
continuous cooperation throughout the study was fabulous . Their charismatic
attitude made this study joyful and interesting.
HABIB-UR-REHMAN
3rd
SEM .MBA (FINANCE)
RENAISSANCE INDRA BUSINESS SCHOOL,
Bhilai.(CG)

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DECLERATION
I “HABIB-UR-REHMAN” student of “ Renaissance Indra Business
School Bhilai (C.G)” hereby declare that this project “Need Of Financial
Adviser In Mutual Fund” is original task performed by me under the able
guidance of MR.DIVYADITYA KOTHARI SIR , MR.RAJEEV
KAPOOR SIR(DEAN) , ALL FACULTIES OF RIBS AND Mr.
PRASOON JAIN (Cluster head of RMF),MISS AMRITA SHAHI (RM OF
RMF)Mr. AKASH MAHAKALKAR (RM OF RMF).
This is after undergoing training program in partial fulfillment of MBA
degree. And I also declare that this has not been submitted by any other student.

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CERTIFICATE
This is to certify that Mr. HABIB-UR-RAHMAN has successfully
completed the summer training in partial fulfillment of requirement for the
award of PGP Degree prescribed by the RENAISSANCE INDRA BUSINESS
SCHOOL, Bhilai.
This report is the record of authentic work carried out by the student
during the academic year 2011-2012
Mr. PRASOON JAIN
(Cluster head of RMF),

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Executive summary
I started my training from 1st
of august 2011 the concept of my topic is to
know how important is the role of financial advisor in mutual fund .At very first
day we just given classroom training there we learned about the mutual fund
from the day fifth we were in the market.
In few years Mutual Fund has emerged for ensuring one of the best return
tools. Mutual Funds have not only contributed to the India growth story but
have also helped families to achieve their success of Indian Industry. As
information and awareness is rising more and more people are enjoying the
benefits of investing in mutual funds. The main reason the number of retail
mutual fund investors remains small is that nine in ten people with incomes in
India do not know that mutual funds exist, but once people are aware of mutual
fund investment opportunities, the number who decide to invest in mutual funds
increases to as many as one in five people. The trick for converting a person
with no knowledge of mutual funds to a new Mutual Fund customer is to
understand which of the potential investors are more likely to buy mutual funds
and to use the right things in the sales process that customers will accept as
important and relevant to their decision. There is popular saying’’ sold only that
attributes which consumer want’’.
The topic of the project has been given by project guide Ms. AMRITA SHAHI
(relationship manager) reliance mutual fund, Raipur branch. As per our
discussion the topic has been found very important as far as in reliance mutual
fund. So being a summer trainee of reliance mutual fund Raipur branch, it was a
great opportunity for me to take up this topic as a challenge, because the result
of this project or survey will be very much beneficial for me as well as company
too. They will get to know about their strength and they will know that how
much of market they have captured.
I used to go out to the market for selling interaction the products of the reliance
and Due to this I grab great experience to communicate with different types of
customers, which was really good experience and will help me in my future
course of life. The major part of my training is I went to business people,
doctor’s and many more. . During the selling I found some difficulties like the
customers had no time or they were too busy with their works and in most of the
cases they were not available at their places.

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This Project gave me a great learning experience and at the same time it gave
me enough scope to implement my analytical ability. The analysis and advice
presented in this Project Report is based on market research on the saving and
investment practices of the investors and preferences of the investors for
investment in Mutual Funds. This Report will help to know about the investors’
Preferences in Mutual Fund means why they prefer any particular Asset
Management Company (AMC), Which type of Product they prefer, Which
Option (Growth or Dividend) they prefer or Which Investment Strategy they
follow (Systematic Investment Plan or One time Plan).
It was great opportunity that we attended 2 training program the name of such
are LDGM (LOST DUTHMAN GOLD MINE) program conducted by reliance
national training head MIHIR SHAH in this program we experienced how to
increase ROI(return on investment. This program especially designed for
bankers we took part into that as a provisionary concept they used in program
was mind blowing.
It was our great pleasure that we also attended training programmed of debt that
was basically designed for IFA (institute of financial advisor) in this session we
learned money market instrument and debt composition funds.
There is one thing that I have found that the peoples working at reliance mutual
fund are very much helpful in all areas. Every time they came to me and told me
that they are available at any time for us for anything, which really boost me
and motivated me towards my goal and objectives. The culture of reliance
mutual fund is very much friendly and cool to work there. The boss or cluster
head as well as Branch relationship manager together play a vital role to boost
their colleagues.

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INTRODUCTION TO MUTUAL FUND
Mutual fund is a trust that pools the savings of a number of investors
who share a common financial goal. This pool of money is invested in
accordance with a stated objective. The joint ownership of the fund is thus
“Mutual”, i.e. the fund belongs to all investors. The money thus collected
is then invested in capital market instruments such as shares, debentures
and other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion
the number of units owned by them. Thus a Mutual Fund is the most
suitable investment for the common man as it offers an opportunity to
invest in a diversified, professionally managed basket of securities at a
relatively low cost. A Mutual Fund is an investment tool that allows small
investors access to a well-diversified portfolio of equities, bonds and other
securities. Each shareholder participates in the gain or loss of the fund.
Units are issued and can be redeemed as needed. The fund’s Net Asset
value (NAV) is determined each day.
Investments in securities are spread across a wide cross-section of
industries and sectors and thus the risk is reduced. Diversification reduces
the risk because all stocks may not move in the same direction in the same
proportion at the same time. 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.

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When an investor subscribes for the units of a mutual fund, he becomes
part owner of the assets of the fund in the same proportion as his contribution
amount put up with the corpus (the total amount of the fund). Mutual Fund
investor is also known as a mutual fund shareholder or a unit holder.
Any change in the value of the investments made into capital market
instruments (such as shares, debentures etc) is reflected in the Net Asset Value
(NAV) of the scheme. NAV is defined as the market value of the Mutual Fund
scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing
the market value of scheme's assets by the total number of units issued to the
investors.

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ADVANTAGES OF MUTUAL FUND
 Portfolio Diversification
 Professional management
 Reduction / Diversification of Risk
 Liquidity
 Flexibility & Convenience
 Reduction in Transaction cost
 Safety of regulated environment
 Choice of schemes
 Transparency
DISADVANTAGE OF MUTUAL FUND
 No control over Cost in the Hands of an Investor
 No tailor-made Portfolios
 Managing a Portfolio Funds
 Difficulty in selecting a Suitable Fund Scheme

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HISTORY OF MUTUAL FUND IN INDIA
The mutual fund industry in India started in 1963 with the
formation of Unit Trust of India, at the initiative of the Government
of India and Reserve Bank. Though the growth was slow, but it
accelerated from the year 1987 when non-UTI players entered the
Industry.
In the past decade, Indian mutual fund industry had seen a dramatic
improvement, both qualities wise as well as quantity wise. Before,
the monopoly of the market had seen an ending phase; the Assets
Under Management (AUM) was Rs67 billion. The private sector
entry to the fund family raised the Amount to Rs. 470 billion in
March 1993 and till April 2004; it reached the height if Rs. 1540
billion.
The Mutual Fund Industry is obviously growing at a tremendous
space with the mutual fund industry can be broadly put into four
phases according to the development of the sector. Each phase is
briefly described as under.
First Phase – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of
Parliament by the Reserve Bank of India and functioned under the
Regulatory and administrative control of the Reserve Bank of
India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched
by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6,700 crores of assets under management.
Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set
up by public sector banks and Life Insurance Corporation of India
(LIC) and General Insurance Corporation of India (GIC). SBI
Mutual Fund was the first non- UTI Mutual Fund established in

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June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund
(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC
had set up its mutual fund in December 1990.At the end of 1993,
the mutual fund industry had assets under management of
Rs.47,004 crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
1993 was the year in which the first Mutual Fund Regulations came
into being, under which all mutual funds, except UTI were to be
registered and governed. The erstwhile Kothari Pioneer (now
merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a
more comprehensive and revised Mutual Fund Regulations in
1996. The industry now functions under the SEBI (Mutual Fund)
Regulations 1996. As at the end of January 2003, there were 33
mutual funds with total assets of Rs. 1,21,805 crores.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India
Act 1963 UTI was bifurcated into two separate entities. One is the
Specified Undertaking of the Unit Trust of India with assets under
management of Rs.29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return
and certain other schemes
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB,
BOB and LIC. It is registered with SEBI and functions under the
Mutual Fund Regulations. consolidation and growth. As at the end
of September, 2004, there were 29 funds, which manage assets of
Rs.153108 crs under 421 schemes

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CLASSIFICATION OF MUTUAL FUND
Mutual funds can be classified as follow :
 Based on their structure:
 Open-ended funds: Investors can buy and sell the units from the
fund, at any point of time.
 Close-ended funds: These funds raise money from investors only
once. Therefore, after the offer period, fresh investments can not be
made into the fund. If the fund is listed on a stocks exchange the
units can be traded like stocks (E.g., Morgan Stanley Growth Fund).
Recently, most of the New Fund Offers of close-ended funds
provided liquidity window on a periodic basis such as monthly or
weekly. Redemption of units can be made during specified intervals.
Therefore, such funds have relatively low liquidity.
 Based on their investment objective:
Equity funds: These funds invest in equities and equity related
instruments. With fluctuating share prices, such funds show volatile
performance, even losses. However, short term fluctuations in the
market, generally smoothens out in the long term, thereby offering
higher returns at relatively lower volatility. At the same time, such
funds can yield great capital appreciation as, historically, equities
have outperformed all asset classes in the long term. Hence,
investment in equity funds should be considered for a period of at
least 3-5 years. It can be further classified as:
i) Index funds- In this case a key stock market index, like
BSE Sensex or Nifty is tracked. Their portfolio mirrors the
benchmark index both in terms of composition and individual stock
weightings.
ii) Equity diversified funds- 100% of the capital is invested
in equities spreading across different sectors and stocks.

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iii|) Dividend yield funds- it is similar to the equity
diversified funds except that they invest in companies offering high
dividend yields.
iv) Thematic funds- Invest 100% of the assets in sectors
which are related through some theme.
e.g. -An infrastructure fund invests in power, construction, cements
sectors etc.
v) Sector funds- Invest 100% of the capital in a specific
sector. e.g. - A banking sector fund will invest in banking stocks.
vi) ELSS- Equity Linked Saving Scheme provides tax benefit
to the investors.
Balanced fund: Their investment portfolio includes both debt and
equity. As a result, on the risk-return ladder, they fall between
equity and debt funds. Balanced funds are the ideal mutual funds
vehicle for investors who prefer spreading their risk across various
instruments. Following are balanced funds classes:
i) Debt-oriented funds -Investment below 65% in equities.
ii) Equity-oriented funds -Invest at least 65% in equities,
remaining in debt.
Debt fund: They invest only in debt instruments, and are a good
option for investors averse to idea of taking risk associated with
equities. Therefore, they invest exclusively in fixed-income
instruments like bonds, debentures, Government of India securities;
and money market instruments such as certificates of deposit (CD),
commercial paper (CP) and call money. Put your money into any of
these debt funds depending on your investment horizon and needs.
i) Liquid funds- These funds invest 100% in money market
instruments, a large portion being invested in call money market.
ii) Gilt funds ST- They invest 100% of their portfolio in
government securities of and T-bills.

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iii) Floating rate funds - Invest in short-term debt papers.
Floaters invest in debt instruments which have variable coupon
rate.
iv) Arbitrage fund- They generate income through arbitrage
opportunities due to mis-pricing between cash market and
derivatives market. Funds are allocated to equities, derivatives and
money markets. Higher proportion (around 75%) is put in money
markets, in the absence of arbitrage opportunities.
v) Gilt funds LT- They invest 100% of their portfolio in
long-term government securities.
vi) Income funds LT- Typically, such funds invest a major
portion of the portfolio in long-term debt papers.
vii) MIPs- Monthly Income Plans have an exposure of 70%-
90% to debt and an exposure of 10%-30% to equities.
viii) FMPs- fixed monthly plans invest in debt papers whose
maturity is in line with that of the fund.

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INVESTMENT STRATEGIES
1. Systematic Investment Plan:
Under this a fixed sum is invested each month on a fixed date of a
month. Payment is made through post dated cheques or direct auto
debit facilities. The investor gets fewer units when the NAV is high
and more units when the NAV is low. This is called as the benefit of
Rupee Cost Averaging (RCA)
2. Systematic Transfer Plan:
Under this an investor invests in debt oriented fund and gives
instructions to transfer a fixed sum, at a fixed interval, to an equity
scheme of the same mutual fund.
3. Systematic Withdrawal Plan:
If someone wishes to withdraw from a mutual fund then he can
withdraw a fixed amount each month
RISK AND RETURN ANALYSIS OF VARIOUS FUNDS

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COMPANY PROFILE

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COMPANY PROFIE:-
Reliance Capital Limited (RCL) was incorporated in year 1986 at
Ahmadabad in Gujarat as Reliance Capital & Maharashtra, in 2006.
In 2006, Reliance Capital Ventures Limited merged with RCL and with
this merger the shareholder base of RCL rose from 0.15 million Finance Trust
Limited. The name RCL came into effect from January 5, 1995. In 2002, RCL
shifted its registered office to Jamnagar in Gujarat before it finally moved to
Mumbai in shareholders to 1.3 million.
RCL entered the Capital Market with a maiden public issue in 1990 and
in subsequent years further tapped the capital market through rights issue and
public issues. The equity shares were initially listed on the Ahmadabad Stock
Exchange and The Stock Exchange Mumbai. Presently the shares are listed on
The Stock Exchange Mumbai and the National Stock Exchange of India.
RCL was accredited a Category 1 Merchant banker by the Securities
Exchange Board of India (SEBI). It had lead managed/co-managed 15 issues of
an aggregate value of Rs. 400 crore and had underwritten 33 issues for an
aggregate value of Rs.550 crore. All these companies were listed on various
exchanges.
RCL obtained its registration as a Non-banking Finance Company
(NBFC) in December 1998. In view of the regulatory requirements RCL
surrendered its Merchant Banking License.

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TOP MANAGEMENT PROFILE

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TOP MANAGEMENT PROFILE
Reliance Capital is anchored by a team of experienced and committed visionaries who
are dedicated towards scaling the company to greater heights through innovation and
excellence; thereby creating value for all our stakeholders.
Amit Bapna (Chief Financial Officer, Reliance Capital)
Arun Hariharan (President, Quality and Knowledge Management, Reliance
Capital)
K. Achuthan (Chief People Officer, Reliance Capital)
K. V. Srinivasan (Chief Executive Officer, Reliance Commercial Finance)
Madhusudan Kela (Chief Investment Strategist, Reliance Capital)
Malay Ghosh (Executive Director & President, Reliance Life Insurance
Company)
Rajnikant Patel (President and Chief Executive Officer, Reliance Spot
Exchange)
Sam Ghosh (Chief Executive Officer, Reliance Capital)
Sandeep Phanasgaonkar (Chief Technology Officer, Reliance Capital)
Sanjay Jain (Chief Marketing Officer, Reliance Capital)
Sundeep Sikka (Chief Executive Officer, Reliance Capital Asset
Management)
Vijay Pawar (Executive Director & Chief Executive Officer, Reliance
General Insurance)
V. R. Mohan (Company Secretary, Reliance Capital)

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Vision
Reliance Capital's vision is that:
By 2012, it will be a company that is known as:
"And most trusted financial services company in India and in the emerging
markets".
In doing so, the company expects to reach the following targets by 2012:
1. 50 million customers.
2. 75,000 employees
3. A profit after tax of Rs. 5,000 crore for that financial year.
4. A valuation of Rs. 100,000 crore for the company and its subsidiary
businesses.
In achieving this vision, the company will be both customer-centric and
innovation-driven.
Reliance Capital Ltd. is one of India’s leading and fastest growing private
sector financial
Services companies, and ranks among the top 3 private sector financial
services and banking companies, in terms of net worth. Reliance Capital Ltd.
has interests in asset management,
Life and general insurance, private equity and proprietary investments, stock
broking and other financial services

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RELIANCE MUTUAL FUND PRODUCTS
A)EQUITY
B)DEBT
C)GOLD
A)EQUITY-
The aim of growth funds is to provide capital appreciation over the medium to
long- term. Such schemes normally invest a major part of their corpus in
equities. Such funds have comparatively high risks. These schemes provide
different options to the investors like dividend option, capital appreciation, etc.
and the investors may choose an option depending on their preferences. The
investors must indicate the option in the application form. The mutual funds
also allow the investors to change the options at a later date. Growth schemes
are good for investors having a long-term outlook seeking appreciation over a
period of time.
TYPES OF EQUITY FUND
1 Diversified large cap 5 Diversified theme base
2 Diversified mid and small cap 6 Sector fund
3 Index fund 7 Arbitrage
4 Banking fund 8Tax saver
9 Balanced fund
1)DIVERSIFIED LARGE CAP FUNDS -:
(A) Reliance Quant Plus Fund:-

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A Moderate Large-cap Oriented Fund. It is actively managed Quant based fund
focusing on constituents of S&P CNX Nifty Index. It is this fund is suitable for
those investors who are seeking capital appreciation and growth vis-à-vis the
benchmark index in all market conditions by investing in a concentrated active
portfolio of frontline stocks which is constructed on the basis of a
mathematical model. The fund can be viewed as an additional asset allocation
option by the investors.
(B) Reliance Top 200 Fund:-
A Conservative Large cap Oriented Fund. The Scheme will invest in equity or
equity related instruments of companies whose market capitalization is within
the range of highest & lowest market capitalization of BSE 200 Index. The
selection of the companies will be done so as to capture the growth in the
Indian economy. The fund will be focusing on companies having good
liquidity in the stock market.
(C) Reliance NRI Equity Fund:-
A Conservative Large cap Oriented Fund. It is an exclusive offering for NRIs
having a large cap oriented portfolio with focus on stable companies. It is
reliance NRI Equity Fund is suitable for NRI investors who are seeking
exposure to diversified equity space to participate in the strong trajectory of
India growth story.
(D)Reliance Equity Fund:-
A Moderate Large-cap Oriented Fund. It is large-cap Fund that aims to
capitalize on long and short opportunities. It is a useful product in every
investors portfolio as it intends to reduce volatility and reduce downside risks
by using innovative P/E based hedging/shorting strategies
(E)Reliance Vision Fund:-

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A Moderate Large-cap Oriented Fund. It is large-cap fund with a small.
exposure to mid cap stocks. It is the fund is ideal for those investors who are
Reliance Long Term Equity Fund:-
An Aggressive Mid cap and small-cap Oriented Fund. It is poised to Take
Benefits of Opportunities in Mid Caps and Small Caps. It is ideal for those
investors who want to capitalize on opportunities in small and mid cap space
with a long term investment horizon of more than 3 years.
2 DIVERSIFIED MID AND SMALL CAP
Reliance Growth Fund:-
A Moderate Mid cap Oriented Fund. It is mid-cap Fund with small exposure
to large cap stocks. It is the fund is ideal for those investors who are seeking
a higher exposure to mid-cap s tocks for capital appreciation & growth and
considerably lower exposure to debt markets for consistent return.
Reliance Small Cap Fund:-
A Very Aggressive small- cap oriented fund. It is a relatively high risk/high
return oriented fund which shall predominantly invest in small cap
companies/stocks with an objective to maximize the returns and at the same
time trying to minimize the risk by reasonable diversification. Small Cap
stocks for the purpose of the Fund, are stocks whose market capitalization is in
between the highest and lowest market capitalization of companies on BSE

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Small Cap Index at the time of investment. Reliance Small Cap Fund will be a
vital part of an investor's core portfolio that aims to create an alpha for his/her
investments.
3 INDEX FUND -
Reliance Index Fund Sensex Plan:
A Conservative Large Cap Oriented Index Linked Fund. It is passively
managed fund which aims to mirror BSE SENSEX so as to commensurate
with the performance of the underlying Index, subject to tracking errors. It is
ideal for those investors who would like to participate in the India growth story
by investing in well-diversified portfolio of well large cap company.
4 BANKING EXCHANGE TRADED FUND-:
Reliance Banking Exchange Traded Fund:-
The investment objective of Reliance Banking Exchange Traded Fund
(RBETF) is to provide returns that, before expenses, closely correspond to the
total returns of the securities as represented the CNX Bank Index. However,
the performance of Scheme may differ from that of the underlying index due to
tracking error.
5 THEME BASE-:
Reliance Infrastructure Fund:-
A Moderate Multi cap Oriented Fund. It is the fund aims to invest in
companies operating & listed in India engaged in infrastructure &
infrastructure related activities. It follows a multi cap strategy with a medium
to long term investment horizon. It is a product for those investors who want to
take exposure in India's infrastructure growth story with a medium to long term

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investment horizon.
Reliance Natural Resources Fund:-
An Aggressive Large Cap Oriented Fund. It is large cap oriented fund that
allows the investor to participate in Indian and Global stocks of issuers in
natural resources industries. The fund does not invest in natural resources
themselves. It is the fund is ideal for those investors who want to invest in
those sectors which are scarcely available in Indian & Global Markets
6 SECTOR-:
Reliance Banking Fund:-
A Moderate Multi cap Oriented Fund. It is the fund aims to generate
consistent returns by investing in equity / equity related or fixed income
securities of companies belonging to the Banking Sector. The fund follows an
active strategy of management with endeavor to generate alpha and outperform
the Banking Index.
Reliance Diversified Power Sector Fund:-
A Moderate Multi cap Oriented Fund. It is the fund focuses on companies
related to power sector. It provides opportunity to diversify within the sector,
with focused approach and flexibility to invest in power distribution,
transmission and generation related companies.
Reliance Media Entertainment Fund:-
A Moderate Multi cap Oriented Fund. It is a sector specific fund which
focuses on investing in companies related to media & entertainment sector.
Reliance Pharma Fund:-

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A Moderate Multi cap Oriented Fund. It is a dynamic asset allocation sector
fund which aims to generate consistent returns by investing in all important
segments of the pharmaceutical industry.
7 TAX SAVER-:
Reliance Tax Saver (ELSS) Fund:-
An Aggressive Large cap Mid Cap Oriented Fund. It is the fund is an open
ended equity linked savings scheme which gives dual advantage of tax savings
& growth potential. It is a large cap orientated fund which aims to have a mix
of minimum 50% exposure to top 100 companies by market capitalization and
high quality mid cap companies. It is this fund is ideal offering for investors
who are seeking exposure to equity to participate in the India Story and the
Indian markets in the diversified equity space as well as who want to take
advantage of the tax benefit availed under Section 80C of Income Tax Act
1961.
Reliance Equity Linked Saving Fund Series 1:-
(A 10 year close-ended Equity Linked Savings Scheme) The primary
objective of the scheme is to generate long-term capital appreciation from a
portfolio that is invested predominantly in equities along with income tax
benefit.
8.RELIANCE ARBITRAGE ADVANTAGE FUND:-
A Conservative Arbitrage Fund. It is the fund aims to generate income through
arbitrage opportunities arising out of pricing mismatch in a security between
cash and derivative segment and with derivatives segment along with
investments in debt securities and money market instruments. It is reliance
Arbitrage Advantage Fund would prove to be an apt product for those

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investors who want to remain conservative and invest in relatively less risky
portfolio.
BALANCE
Reliance Regular Savings Fund - Balanced Plan:-
A Conservative Large & Mid cap Oriented Fund A hybrid equity oriented
portfolio focusing on well managed, high quality large cap stocks as well as
mid cap stocks Ideal for those investors who have a balanced approach towards
risk taking ability
DEBT
The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds,
corporate debentures, Government securities and money market instruments.
Such funds are less risky compared to equity schemes. These funds are not
affected because of fluctuations in equity markets. However, opportunities of
capital appreciation are also limited in such funds. The NAVs of such funds
are affected because of change in interest rates in the country. If the interest
rates fall, NAVs of such funds are likely to increase in the short run and vice
versa. However, long term investors may not bother about these fluctuations
ULTRA SHORT TERM-:
Reliance Money Manager Fund:-
This fund belongs to the family of ultra short term debt funds with very low
exposure to MTM instruments. The fund is managed with a relatively
conservative approach to credit risk and duration as compared to Reliance

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Medium Term Fund & Reliance Floating Rate Fund - Short Term Plan. As a
result of having a higher credit profile and a low MTM component, the returns
may be less volatile than Reliance Medium Term Fund & Reliance Floating
Rate Fund - Short Term Plan. The fund portfolio is designed to generate a
moderate yield pick up over liquid funds and is suitable for investors with
investment between 1 week to 1 month. It is suitable for investors with
investment between 1 week to 1 month.
Reliance Medium Term Fund:-
This fund belongs to the family of ultra short term debt funds, with moderate
exposure to MTM assets. The portfolio is positioned at the shorter end of the
yield curve but has a leeway to take marginal exposure to securities upto 1 year
maturity in case value is identified at that part of the curve. This fund can
marginally enhance the credit risk profile of the portfolio to enhance returns.
The NAV of the fund may be a little more volatile than a liquid fund because
of a higher MTM component in the fund. The fund is suitable for investors
with an investment horizon of 1 month or more. It is suitable for investors with
an investment horizon of 1 month or more.
Reliance Floating Rate Fund Short Term Plan:-
The fund belongs to the category of Ultra Short Term Funds. A significant
portion of the fund is mandated to invest in a combination of debt securities,
money market instruments and floating rate instruments with a maturity profile
of three months and upto 2 years. This fund may have a slightly more
aggressive credit and duration profile compared to Reliance Money Manager
fund and Reliance Medium Term Fund and therefore would be suitable for

RIBS,BHILAI Page 30
investors with minimum 3 months holding period. It is suitable for investors
with minimum 3 months holding period
SHORT TERM FUND
Reliance Dynamic Bond Fund:-
The fund has a dynamic asset allocation structure enabling complete flexibility
in investment in debt instruments which may include investments in corporate
and PSU bonds, Government Securities, money market instruments,
securitized debt etc of varying tenors and the quantum of investments in any of
the above mentioned categories is also flexible. Therefore, the fund intends to
take medium term calls on interest rates and take significant bets on the same.
A significant portion of the fund’s pie shall be invested in higher rate corporate
bonds, money market instruments and gilts. Credit call, if at all, will be taken
on low duration securities. It is
suitable for investors with minimum 6 months holding period
Reliance Short Term Fund:-
The fund belongs to the family of income funds. It is suitable for investors
with short to medium term investment horizon of 6 – 9 months and medium
appetite for risk. The fund predominantly invests in various debt instruments
like Government and Corporate bonds, Securitized Debt, Money Market
Instruments etc and normally maintains a moderate maturity of the portfolio
between 1- 2 years. It is suitable for investors with short to medium term
investment horizon of 6 – 9monthsmedium appetite for risk

RIBS,BHILAI Page 31
RELIANCE DUAL ADVANTAGE FIXED TENURE FUND-PLAN J:
Reliance Monthly Income Plan:-
This is a hybrid fund with a marginal allocation to equity which may go up to
maximum 20%. This is ideal for a predominantly fixed income investor with a
marginal appetite for equity risk .The investment horizon in this fund should
typically be 2 years or more so that the long term benefit of having a marginal
exposure to equity pays off. The fund intends to offer a predominantly fixed
income investor the power of equity along with the stability of debt. It is
suitable for investors with 2 years holding period
Reliance Liquid Fund - Cash Plan:
This fund also belongs to the family of Liquid Funds. The fund is managed
with a relatively conservative approach to credit risk as compared to other
liquid funds. Large part of the portfolio will be invested in the banks/financial
institution space to achieve this objective. The fund is suitable to park very
short term investment surplus fora duration ranging from a day to a month. It is
suitable to park very short term investment surplus for a duration ranging from
a day to a week.
Reliance Liquid Fund - Treasury Plan:-
This fund belongs to the family of Liquid Funds. It is targeted towards varied
investor categories like retail/SMEs/HNIs due to which the minimum
investment amount in the fund is Rs 5000. Since the fund is targeted towards a
diverse investor base, the AUM of the fund is relatively more stable in nature.
This is reflected in its portfolio wherein there is a relatively lower allocation to

RIBS,BHILAI Page 32
relative cash and cash like instruments. Also because of a more diversified
investor base, the marketing expenses on an average are slightly higher than
Reliance Liquidity Fund resulting in relatively higher expense charged. It is
meant for short term cash management & is suitable investors with investment
horizon between 1 day to 1 month.
Reliance Liquidity Fund:
The fund belongs to the family of Liquid Funds. It is designed to handle
extremely large ticket size investments with the minimum application amount
being Rs. 5 crore. Since the fund is meant for large ticket size investors,
therefore, on an average maintains low total expense ratio resulting from low
marketing expense. The portfolio endeavors to maintain a larger proportion of
assets in liquid, cash and near cash instruments to handle the possibility of
larger volatility in a smooth manner. It is meant for short term cash
management for corporates & is suitable investors with investment horizon
between 1 day to 1 mont
LONG TERM
Reliance Regular Savings Fund Debt Option:-
This fund belongs to the family of income funds. This fund is positioned
towards the retail/HNI/SME kind of fixed income investors. The fund has a
limit on the amount that the investor can invest in a month. The fund basically
seeks to benefit from any opportunity available in the debt market space at
different points in time. Therefore, this fund invests based on short to medium
term interest rate view and shape of the yield curve.It typically maintains a
moderate duration between 1 - 2 years and invests in well researched credits/
structures for yield enhancement. The fund is intended towards ensuring that

RIBS,BHILAI Page 33
the investors have a healthy holding period return over1 - 2 years. It is suitable
for investors with 1-2 years holding period
Reliance Income Fund:-
This fund belongs to the family of income funds. It is suitable for investors
with medium to longer term investment horizon of 12 months and more and
medium to high appetite for risk. Income funds mainly invest in debt securities
of varying maturity periods, i.e. both in short term and long term debt
instruments like Government and Corporate bonds, Securitized Debt, Money
Market Instruments etc, depending on the fund manager’s view of the market
.Suitable for investors with medium to longer term investment horizon of 12
months and more and medium to high appetite for risk
Reliance Gilt Securities Fund:-
This fund belongs to the family of Gilt Funds. It predominantly invests in a
portfolio comprising of securities issued and guaranteed by the Central
Government and State Government, hence has a higher credit profile. It has a
very low credit risk profile. However, it can run extremely long durations and
therefore, have a higher interest rate risk profile. It is suitable for investors with
an investment horizon of 12 months and longer who have a positive view on
falling interest rates. Suitable for investors with an investment horizon of 12
months and longer who have a positive view on falling interest rates.
GOLD
Gold is seen as a symbol of security and a sign of prosperity. Indian consumers
consider gold jewellery as an investment and are well aware of gold’s benefits
as a store of value. Gold is also recognized as a form of money in India, a

RIBS,BHILAI Page 34
tradable liquid asset. It is one of the foundation assets for Indian households
and a means to accumulate wealth from a long term perspective. Gold
investment has been in the culture of Indian tradition and has been on rise
amongst the modern investors as well due to the financial uncertainty and
inflationary pressures.
Reliance Gold Exchange Traded Fund:
(An open-ended Gold Exchange Traded Fund) The investment objective is to
seek to provide returns that closely correspond to returns provided by price of
gold through investment in physical Gold (and Gold related securities as
permitted by Regulators from time to time). However, the performance of the
scheme may differ from that of the domestic prices of Gold due to expenses
and or other related factors
Reliance Gold Savings Fund:-
Gold is seen as a symbol of security and a sign of prosperity. Indian
consumers consider gold jewellery as an investment and are well aware of
gold’s benefits as a store of value. Gold is also recognized as a form of money
in India, a tradable liquid asset.

RIBS,BHILAI Page 35
TOP TEN PLAYERS OF MUTUAL FUND

RIBS,BHILAI Page 36
TOP TEN PLAYERS OF MUTUAL FUND
NAME OF COMPANY AUM
(IN CRS.)
MARKET
CAPITALISATION
(IN %)
Reliance Mutual Fund 101,259 14%
HDFC Mutual Fund 92,033 12.38%
ICICI Prudential Mutual Fund 79,759 10.72%
UTI Mutual Fund 69,105 9.28%
Birla Sun Life Mutual Fund 67,475 9.07%
SBI Mutual Fund 47,874 6.44%
Franklin Templeton Mutual Fund 34,729 4.67%
Kotak Mahindra Mutual Fund 33,994 4.57%
Tata Mutual Fund 25,006 3.36%
Sundaram Mutual Fund 14,541 1.97%
Religare Mutual Fund 11,342 1.52%
Other Mutual fund company 108,306 15%

RIBS,BHILAI Page 37
OBJECTIVES
OF
STUDY

RIBS,BHILAI Page 38
OBJECTIVES OF STUDY
1) To find out the awareness of customers regarding mutual fund.
2) To find out the preferences of consumer in choosing different schemes.
3) To know why one choose to invest in mutual fund.
4) To know preferences regarding portfolio.
5) To find out most preferred channel of selling.

RIBS,BHILAI Page 39
RESEARCH METHODOLOGY

RIBS,BHILAI Page 40
RESEARCH METHODOLOGY
The research methodology helps to build the project on the basis of data
collected. I have collected the data which has helped me to frame the project
through primary and secondary data.
Primary data collection was given more importance since it
is related to the factor in attitude studies. One of the most importance of primary
research is that it helps in identifying the problem, collecting, analyzing the
required information data and providing an alternative solution to the problem
.It also helps in collecting the vital information that is required by the top
management to assist them for the better decision making both day to day
decision and critical ones.
Data sources –:
Data are collected through primary and secondary data.
PRIMARY DATA:
In this case, I had discussion with the company guide and senior
colleagues to gather the information related to my project work and then I
approached the customers of Reliance Money.
During my project not only the primary data helped me but I have to take
help of the secondary data.
Secondary Data:
In this case, I have referred to various books, magazines, company
brochure, net etc. To extract the information that was needed for my
project.

RIBS,BHILAI Page 41
Sampling:
Sampling procedure:
The sample was selected of them who are the customers/visitors of
“UNITED BANK OF INDIA MALVIYA ROAD BRANCH,
ORIENTAL BANK OF COMMERCE COLLECTORATE
BRANCH ,OBC BANK MEDICAL COLLEGE BRANCH,
BANK OF INDIA PACHPEDI NAKA BRANCH”, of RAIPUR
irrespective of them It was also collected through personal visits to
persons, by formal and informal talks and through filling up the
questionnaire prepared..
 Sample size:
The sample size of my project is limited to 100 people only. Out of
which only 55 people had invested in Mutual Fund. Other 45
people did not have invested in Mutual Fund.

RIBS,BHILAI Page 42
LIMITATION OF THE STUDY
1 This study is limited to only schemes of mutual fund.
2 This study is restricted to Raipur city only.
3 The study is limited up to the mutual funds operating in India.
4 Possibility of data collection because may have not given actual
information.
5 The sample size of my project is limited to 100 people only. Out of
which only 55 people had invested in Mutual Fund. Other 45 people did
not have investment in Mutual Fund.

RIBS,BHILAI Page 43
DATA ANALYSIS
AND
INTERPRETATION

RIBS,BHILAI Page 44
Q1 AGE DITRIBUTION OF INVESTORS?
Age Group <= 30 31-35 36-40 41-45 46-50 50<
No. of
Investors
10 15 30 20 15 10
INTERPRITATION-: According to this chart out of 100 Mutual Fund
investors of Raipur the most are in the age group of 36-40 yrs. i.e. 30%, the
second most investors are in the age group of 41-45yrs i.e. 20% and the least
investors are in the age group of below 30 yrs.
10
15
30
20
15
10
AGE DISTRIBUTION
up to 30
31-35
36-40
41-45
46-50
above 50

RIBS,BHILAI Page 45
Q.2 Do you aware of the term mutual fund ?
A) YES B) NO
INTERPRETATION-:
According to the above chart it can be concluded that out of 100 people 60%
people are not aware of the term mutual fund only 30% people aware of it.
30%
60%
10%
RESPONDENT RESPONSE
YES
NO
CAN'T SAY

RIBS,BHILAI Page 46
Q.3 INFORMATION YOU GOT FROM?
Source of information No. of Respondents
Advertisement 5%
colleague 15%
Banks 55%
Financial Advisors 25%
INTERPRETATION-:
Above chart is showing how the mutual fund investor came to know about
mutual out of 100 people 55% came to know from bank25% from the financial
advisor 15%from colleague and only 5% from advertisement
ADVERTISEMENT
5%
PEER GROUP
15%
BANK
55%
FINANCIAL
ADVISOR
25%
SOURCES OF INFORMATION

RIBS,BHILAI Page 47
Q.4 Respondents current investment in Mutual Fund
Response No. of Respondents
YES 25
NO 75
Total 100
INTERPRETATION-:
The above data is showing current investor investment in mutual fund of
4 different banks United Bank of India , Oriental Bank of Commerce medical
college branch, Bank of India, oriental bank of commerce collectorate branch
out of 100 people of different bank only 25 respondents are have current
investment in mutual fund.
0
5
10
15
20
25
no
yes

RIBS,BHILAI Page 48
Q.5. Reason for not invested in Mutual Fund
Reason No. of Respondents
Not Aware 75
Higher Risk 5
Not any Specific
Reason
10
INTERPRETATION-:
Out of 90 people, who have not invested in Mutual Fund, 75% are not
aware of Mutual Fund, 5% said there is likely to be higher risk and 10% do not
have any specific reason.
NOT
AWARE
83%
HIGHER
RISK
6%
NOT ANY SPECIFIC
REASON
11%
REASON FOR NOT INVESTMENT

RIBS,BHILAI Page 49
Q.6 Do you aware of mutual fund schemes?
A)YES B)NO
RESPONSE NO. OF RESPONDENTS
YES 26
NO 74
INTERPRETATION-:
Out of 100 people 74 are not fully aware of mutual fund schemes only
26% are aware of that.
26
74
RESPONSE
YES
NO

RIBS,BHILAI Page 50
Q.7Do you know about option and plan in mutual fund?
A) YES B) NO
INTERPRETATION-:
out of 25 people who have invested in mutual fund 57% are not
aware of option and plan under mutual fund but 43% are aware of it.
43
57
RESPONSE
YES
NO

RIBS,BHILAI Page 51
Q.8Monthly Family Income of the Investors of RAIPUR.
Income Group No. of Investors
Below-10,000 7
10,001-20,000 15
20,001-30,000 30
30,001-40,000 23
Above-40,000 25

INTERPRETATION-:
In the Income Group of the investors of Raipur , out of 100
investors, 30% investors that is the maximum investors are in the
monthly income group Rs. 20,001 to Rs. 30,000, Second one i.e.
25% investors are in the monthly income group of more than Rs.
40,000 and the minimum investors i.e.7% are in the monthly
income group of below Rs. 10,000
0
5
10
15
20
25
30
35
below 10,000 10,001 -20,000 20,001-30,000 30,001-40,000 above 40,000
RESPONSE

RIBS,BHILAI Page 52
Q.9Preferred Portfolios by the Investors
INTERPRETATION-:
out of 100people 45% people prefer to invest in gold saving fund17% prefer in
balance fund 15% prefer in debt and 25% n equity
EQUITY
24%
DEBT
15%
BALANCE
16%
GOLD
45%
RESPOSE
Portfolio No. of Investors
Equity 25
Debt 15
Balanced
Gold
17
46

RIBS,BHILAI Page 53
Q.10Total no. of avenues of investment you know?
A) FD
B) RD
C) SAVING A/C
D) INSURANCE
E) REAL ESTATE
F) MUTUAL FUND
G) INVESTMENTS IN CAPITAL MARKET
H) INVESTMENT IN MONEY MARKET
I) GOLD AND SILVER
J) IF OTHERS SPECIFY……………………………………….
INTERPRETATION-:Above showing avenues of investment people know
93% people know about F.D .90% know R.D. 94% know about saving account
93%
90%
94%
80%
64%
45%
40%
30% 65%
10%
INVESTOR RESPONSE
FIXED DEPOSIT
RECURRING DEPOSIT
SAVING A/C DEPOSIT
INSURANCE
REAL ESTATE
MUTUAL FUND

RIBS,BHILAI Page 54
80% know about insurance 64% know about real estate only 30% know about
the mutual fund.
Q.11Which feature of the investment attracts you most?
A) Risk Diversification
B) Max. return with max. risk
C) Min.risk with min. return
D) Moderate risk with moderate return.
INTERPRETATION-:
Above data showing the feature that investors consider while investing
45% consider risk diversification factor 26% consider max. return with max.
risk 20% consider min. risk with min. return factor while 19% consider
moderate with moderate.
45
26
20
19
RESPONSE
RISK DIVERSIFICATION
MAX.RETURN WITH MAX. RISK
MIN.RISK WITH MIN. RETURN
MODERATE RISK WITH
MODERATE RETURN

RIBS,BHILAI Page 55
FINDINGS AND CONCLUSION
 In Raipur the investors in the Age Group of 36-40 years were
more in numbers. The second most Investors were in the age
group of 41-45 years and the least were in the age group of
below 30 years.
 In family Income group, between Rs. 20,001- 30,000 were
more in numbers, the second most were in the Income group
between Rs.30,000-40,000 and the least were in the group of
below Rs. 10,000.
 About all the Respondents had a Saving A/c in Bank, 76%
Invested in Fixed Deposits, Only26% Respondents invested in
Mutual fund.
 Mostly Respondents preferred High Return while investment,
the second most preferred Low Risk then liquidity and the
least preferred Trust.
 Only 30% Respondents were aware about Mutual fund and
its operations and 60% were not.

RIBS,BHILAI Page 56
 Among 100 Respondents only 26% had invested in Mutual
Fund and 74% did not have invested in Mutual fund.
 Most of the Investors had invested in LIC and preferred to
invest in that due to security.
 Out of 26 investors of RMF 41% have invested due to its
association with the Brand RELIANCE, 29% Invested because
of Advisor’s Advice and 30% due to better return.
 Most of the investors who did not invested in RMF due to not
Aware of RMF, the second most due to risks.
 For Future investment the maximum Respondents preferred
Reliance Mutual Fund, the second most preferred ICICI
Prudential, SBIMF has been preferred after them.
 25% Investors preferred to Invest through Financial Advisors,
15% from their colleagues and 55% through Bank.
 15% preferred One Time Investment and 85% preferred SIP
out of both type of Mode of Investment.
 The most preferred Portfolio was GOLD, the second most
was EQUITY and the least preferred Portfolio was Debt
portfolio.

RIBS,BHILAI Page 57
 Maximum Number of Investors Preferred Growth Option for
returns.
SUGGESTIONS AND RECOMMENDATION
 The most vital problem spotted is of ignorance. Investors
should be made aware of the benefits. Nobody will invest
until and unless he is fully convinced. Investors should be
made to realize that what they are losing by not investing.
 Mutual funds offer lots of benefit which no other single
option could offer. But most of the people are not even
aware of what actually a mutual fund is? They only see it as
just another investment option. So the advisors should try
to change their mindsets. The advisors should target for
more and more young investors. Young investors as well as
persons at the height of their career would like to go for
advisors due to lack of expertise and time.

RIBS,BHILAI Page 58
 Reliance Mutual Fund needs to give the training of the
Individual Financial Advisors(bankers) about the
Fund/Scheme and its objective, because they are the main
source to influence the investors.
 Before making any investment Financial Advisors should first
enquire about the risk tolerance of the investors/customers,
their need and time (how long they want to invest). By
considering these three things they can take the customers
into consideration.
 Younger people aged under 35 will be a key new customer
group into the future, so making greater efforts with
younger customers who show some interest in investing
should pay off.
 Customers with graduate level education are easier to sell
and there is a large untapped market there. To succeed
however, advisors must provide sound advice and high
quality.
 Systematic Investment Plan (SIP) is one the innovative
products launched by Assets Management companies in

RIBS,BHILAI Page 59
the industry. SIP is easy for monthly salaried person as it
provides the facility of do the investment in EMI. Though
most of the prospects and potential investors are not aware
about the SIP. There is a large scope for the companies to
tap the salaried persons.
BIBLIOGRAPHY
www.reliancemutualfund.com
www.moneycontrol.com
WWW.AMFIINDIA.COM
WWW.ONLINERESEARCHONLINE.COM
NEWS PAPERS

RIBS,BHILAI Page 60
OUTLOOK MONEY
TELEVISION CHANNEL (CNBC AAWAJ)
MUTUAL FUND HAND BOOK
FACT SHEET AND STATEMENT

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