comparative study on performance of equity schemes of reliance mutual fund mba project report

7/31/2019 Comparative Study on Performance of Equity Schemes of Reliance Mutual Fund MBA PROJECT REPORT

1/81

Comparative study on performance of Equity Schemes of

Reliance Mutual Fund.

EXECUTIVE SUMMARY

Now a day, there is a tough competition in financial avenues due to increase in the

investment products. People can get many investment options to invest their savings. Selecting

one from the many available options considering many associated factors is a very complex

process.

Reliance Mutual Fund is one of India's largest brokerage and securities distribution house

in India. It is new to Securities market but still among the top 5 performing company leaving far

behind the oldest companies. It is considered to be one of the leading investment broking houses

catering to the needs of both institutional and non-institutional investor categories with presence

all over the country through franchisees and co-coordinators.

In this project I studied the schemes of Reliance Mutual fund and their returns in

various period of time which helped me in knowing how the various schemes are performing and

the reasons behind it. I also came to know the risk associated with the various schemes and how

risk and returns are related. Hence my topic of study is Comparative study on performance of

Equity Schemes of Reliance Mutual Fund.

BABASAB PATIL

1


2/81



Design of the Study

Need for the Study:

The study will help the organization in knowing how the Equity schemes of the companys are

performing and which schemes are preferred most by the investors.

Objectives of the Study

To know the Performance of the preferred equity of Reliance Mutual Fund.

To understand the concept of Mutual Fund its working, mechanism and types traded in

India.

To compare the risk and return associated with the Equity Schemes of Reliance Mutual

Fund.

To know which scheme of Equity of Reliance Mutual Fund is most preferred by the

investors and what factors they consider while investing in reliance mutual fund.

To evaluate the performance Sharpes and Treynors index are used

Scope of the study

For the study Equity schemes of Reliance Mutual Fund were scanned whose corpus

value is more than 500 crores to compare their performance by calculating risk and return

associated with these schemes. Also a survey was conducted on Reliance Investors to knowthe most preferred Equity scheme by the Investors and what factors make them Invest in

Reliance mutual Fund

BABASAB PATIL

2


3/81



To evaluate the performance of the scheme and funds I have applied sharps index &

Treynors index .

Limitations of the study:

The data collection was strictly confined to secondary sources. Primary data was associated

with only the survey conducted on the investors.

Collecting historical NAV is very difficult.

Selection of schemes for study is very difficult because lot of Varieties in equity Schemes

Techniques of analysis:

1. Return :

Return on a typical investment consists of two components. The basic is the periodic cash

receipts (or income) on the investment, either in the form of interest or dividends. The second

component is the change in the price of the assets-commonly called the capital gain or loss. This

element of return is the difference between the purchase price and the price at which the assets

can be or is sold; therefore, it can be again or a loss.

The return has been calculated as under:

NAVt NAVt-1

Portfolio return: Rit =---------------------------------

NAV t-1

Where Rit is the difference between Net Asset Values for two consecutive days dividend by the

NAV of the preceding day.

BABASAB PATIL

3


4/81



M.indt M.indt-1

Market return: Rmt =--------------------------------

M.indt-1

Where Rmt is the difference between market indices of two consecutive days dividend by

the market index for the preceding day

2. Risk :

Risk is neither good nor bad. Risk in holding securities is generally associated with the

possibility that realized returns will be less than expected returns. The difference between the

required rate of returns on mutual fund investment and the risk free return is the risk premium.

Risk can be measured in terms of Beta & standard deviations.

Standard deviation

It is used to measure the variation in individual returns from the average expected returns

over a certain period. Standard deviation is used in the concept of risk of a portfolio of

investments. Higher standard deviation means a greater fluctuation in expected return.

Standard deviation (SD) =\/ var

Where Var = variance

BABASAB PATIL

4


5/81



Var= p (ri-E(r))2

Beta :

Beta measures the systematic risk and shows how prices of securities respond to the market

forces. It is calculated by relating the return on a security with return for the market. By

convention, market will have beta 1.0.Mutual fund is said to be volatile, more volatile or less

volatile. If beta is grater than 1 the stock is said to be riskier than market. If beta is less than 1,the

indication is that stock is less risky in comparison to market. If beta is zero then the risk is the

same as that of the market. Negative beta is rare.

= nxy-(x)( y)

nx2-(x) 2

Where n= number of days

X =rolling returns of the NSE index

Y= rolling returns of the schemes

3. Sharpe index

Sharpe index measures risk premium of a portfolio, relative to the total amount of risk inthe portfolio. Sharpe index summarizes the risk and return of a portfolio in a single measure that

categorizes the performance of funds on the risk- adjusted basis. The larger the Sharpes index

the portfolio over performs the market and vise versa.

BABASAB PATIL

5


6/81



Where

st = Sharpes index

Rp= portfolio return

Rf= Risk free rate of return (7.59%)

SD= Standard Deviation of the port folio

St= RP-Rf

SD

4. Treynors Index

Treynors model is on the concept of the characteristics straight line. The characteristics

line has drawn a relationship between the market return and a specific portfolio without taking

into consideration any direct adjustment for risk. It is also known as reward to volatility ratio and

is defined as:

The formula for Treynors Index is:

Portfolio avg return (Rp) risk-free rate of interest (Rf)

Treynor index (Tn) = ---------------------------------------------------------------------

Beta coefficient of portfolio (Bp)

Rp -Rf

BABASAB PATIL

6


7/81



Tn = -------------------------

Bp

It measures portfolio risk in terms of beta, which is weighted average of individual security

beta. The ratio is investors, for who the fund represents only a fraction of their total assets. The

higher the ratio better is the performance.

BABASAB PATIL

7


8/81



INTRODUCTION

An investment means employment of funds on assets (i.e. securities or mutual funds or any

of the investment avenues) with the aim of earning of income as well as capital appreciation.

There are mainly two attributes while investing to any of the means, i.e. time and risk. There are

mainly four objectives, which the investments activities will carry on those are :

Return

Risk

Liquidity

Hedge against inflation

Safety

There are many alternatives which investment avenues are open to the investors to suit

their needs and nature .The selection of investment alternatives are depends up on the required

level of return and the risk tolerance level. These alternatives range from financial securities to

traditional non-securities investment.

Following are the various investment alternatives.

Negotiable and fixed income securities

Equity shares

Preference share

Debentures

BABASAB PATIL

8


9/81



Bonds

Indira vikas patra &Kisan Vikas patra

Government securities

Money market securities (i.e. treasury bill, commercial paper, certificate of

Deposit etc)

Non-negotiable securities

Bank deposit Post office deposit

NBFC deposit

Tax saving schemes

Public provident fund scheme

National saving scheme

Life insurance

Mutual funds

Real estate

BABASAB PATIL

9


10/81



Securities

Companies raise funds to finance their projects through various methods. The promoters

can bring their own money or barrow from the financial institutions or mobilizes capital by

issuing securities. The funds may be raised through issue of fresh share at per or

premium. Preference shares debenture or global depository receipts. These are mainly two

markets which any company can raise their funds; those are primary market and secondary

market .the companies raise funds for the following purposes:

To promote a new company

To expand an existing company

To diversify the production

To meet the regular working capital requirement

To capitalize the reserves.

NEW ISSUE MARKET (PRIMARY MARKET)

Stock available for the first time is offered through new issue market. The issuer may be a

new company or an existing company. These issues may be of new type or the secure used in the

past. In the new market the issuer can be consider as a manufacturers. The issuing house,

investing banker and broker act as the channel of distributing for new issue. They take the

responsibility of selling the stock to the public

The primary market provides a direct link between the prospective investors and

BABASAB PATIL

10


11/81



Company. The main survives function of the primary market are:

Origination

Underwriting

Distribution

The main objectives of NSE are as follows.

To establish the nation wide trading facility for Equities, Debt instruments and hybrids.

To ensure equal access to investors all over the country through appropriatecommunication network.

To enable shorter settlement cycle and book entry settlement system.

BABASAB PATIL

11


12/81



INTRODUCTION TO THE MUTUAL FUND

Mutual Funds are dynamic financial institutions, which play a crucial role in an economy my

mobilizing a link between savings and the capital market. Therefore the activities of Mutual Funds

have both short and long term impact on the savings and capital markets and the national economy.

Mutual Funds thus assist the process of financial deepening and intermediation. They mobilize

Funds in the savings market and act as complementary to banking, at the same time they also

compete with banks and other financial institutions. In the process stock market activities are also

significantly influenced by Mutual Funds. The scope and efficiency of Mutual Funds are

influenced by overall economic fundamentals, the interrelationship between the financial and real

sector, the nature of development of the savings and capital markets, market structure, institutional

arrangements and overall policy regime.

MEANING

A MUTUAL FUND IS A COMMON POOL OF MONEY INTO WHICH THE INVESTORS

PLACE THEIR CONTRIBUTIONS THAT ARE TO BE INVESTED IN ACCORDANCE WITH

A STATED OBJECTIVE.

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

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

BABASAB PATIL

12


13/81



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. The mutual funds

normally come out with a number of schemes with different investment objectives, which are

launches from time to time. A mutual fund is required to be registered with Securities and

Exchange Board of India (SEBI), which regulates securities markets before it can collect funds

from the public.

About Reliance Capital Asset Management Ltd.

Reliance Capital Asset Management Limited (RCAM), a company registered under the Companies

Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund.

Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital

Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management

Limited is held by Reliance Capital Limited.

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, 1995.

The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM

dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual Funds)

Regulations, 1996. Pursuant to this IMA, RCAM is authorised to act as Investment Manager of

Reliance Mutual Fund. The networth of the Asset Management Company including preference

shares as on March 31, 2005 is Rs.30.13 crores. Reliance Mutual Fund has launched twenty five

BABASAB PATIL

13


14/81



Schemes till date, namely: Reliance Vision Fund (September 1995), Reliance Growth Fund

(September 1995) Reliance Income Fund (December 1997), Reliance Liquid Fund (March 1998),

Reliance Medium Term Fund (August 2000), Reliance Short Term Fund (December 2002),

Reliance Fixed Term Scheme (March 2003), Reliance Banking Fund (May 2003), Reliance Gilt

Securities Fund (July 2003), Reliance Monthly Income Plan (December 2003), Reliance

Diversified Power Sector Fund (March 2004) Reliance Pharma Fund ( May 2004), Reliance

Floating Rate Fund (August 2004), Reliance Media & Entertainment Fund (September 2004),

Reliance NRI Equity Fund (October 2004), Reliance NRI Income Fund (October 2004), Reliance

Index Fund (January 2005), Reliance Equity Opportunities Fund (February 2005), Reliance Fixed

Maturity Fund - Series I (March 2005), Reliance Fixed Maturity Fund - Series II (April 2005),

Reliance Regular Saving Fund (May 2005), Reliance Liquidity Fund (June 2005), Reliance Tax

Saver (ELSS) Fund (July 2005), Reliance Fixed Tenor Fund (November 2005) and Reliance

Equity Fund (Feb 2006).

RCAM has been registered as a portfolio manager vide SEBI Registration No.

INP000000423 and renewed effective 1st August, 2003.RCAM has commenced these activities. It

has been ensured that key personnel of the AMC, the systems, back office, bank and securities

accounts are segregated activity wise and there exists systems to prohibit access to inside

information of various activities. As per SEBI Regulations, it will further ensure that AMC meets

the capital adequacy requirements, if any, separately for each such activity.

BABASAB PATIL

14


15/81



TRUSTEES: Trustees are like internal regulators in a mutual fund, and their job is to protect the

interest of unitholders. Sponsors appoint trustees. Trustees appoint the AMC, which, subsequently

seek their approval for the work it does, and reports periodically to them on how the business is

being run. Trustees float and market schemes, and secure necessary approvals. They check if the

AMCs investments are within defined limits and whether the funds assets are protected. Trustees

can be held accountable for financial irregularities in the mutual fund.

CUSTODIAN: A custodian handles the investment back office of a mutual fund. Its

responsibilities include receipt and delivery of securities, collection of income, distribution of

dividends, and segregation of assets between schemes. The sponsor of a mutual fund mutual fund

cannot act as a custodian to the fund. This condition, formulated in the interest of investors,

ensures that the assets of mutual fund are not in the hands of its sponsor.

REGISTRAR : Registrars, also known as transfer agents, handle all investor-related services.

This includes issuing and redeeming units, sending fact sheet and annual reports. Some fund

houses handle such functions in-house.

BABASAB PATIL

15


16/81



STRUCTURE OF MUTUAL FUND IN INDIA:

Trustees SEBI Sponsor

Operations AMC

Fund Manager Market / Sales

Mutual Fund

Schemes

Investor

GROWTH OF MUTUAL FUNDS:

The Indianmutual fund as passed through three phases. The first phase was between 1964 and

1987 and only player was the trust of India, which had a total asset of Rs. 6700/- crores and the end

of 1988.the second phase is between 1987 and 1993 during which period 8 funds were established

(6 by banks and one each by LIC and GIC). The total asset under management had grown to Rs.61,

028/- crores at and of 1994 and the numbers of schemes were 167.

BABASAB PATIL

16


17/81



The third began with the entry of private and foreign sectors in the mutual fund industry in 1993.

Kothari pioneer mutual fund was the first fund to be established by the private sector in association

with a foreign fund.

As at the end of financial year 2000 (31 march) 32 funds were functioning with Rs. 1,13,005 crores

as total asset under management. As on august end 2000, there were 33 with 391 schemes and

assets under management with Rs. 1,02,849 crores.

The securities and exchange board of India (SEBI) came out with comprehensive regulation in

1993, which defined the structure of mutual fund and asset management companies for the first

time. Currently there are 34 of mutual fund organizations in India managing over Rs.1, 02,000/-

crore

First investors pool their money in Mutual fund through franchisee or agents or himself in

particular scheme.

Fund manager collect that money and diversify that money in different securities.

Then that securities generate return.

That returns will passed back to the investors.

BABASAB PATIL

17


18/81



THE DIFFERENT TYPES OF MUTUAL FUNDS:

Schemes according to Maturity Period:

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending

on its maturity period.

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and repurchase on a

continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently

buy and sell units at Net Asset Value (NAV) related prices, which are declared on a daily basis.

The key feature of open-end schemes is liquidity.

Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for

subscription only during a specified period at the time of launch of the scheme. 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. In order to provide an exit

route to the investors, some close-ended funds give an option of selling back the units to the

BABASAB PATIL

18


19/81



mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at

least one of the two exit routes is provided to the investor i.e. either repurchase facility or through

listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

Schemes according to Investment Objective:

A scheme can also be classified as growth scheme, income scheme, or balanced scheme

considering its investment objective. Such schemes may be open-ended or close-ended schemes as

described earlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme

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.

Income / Debt Oriented Scheme

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

BABASAB PATIL

19


20/81


21/81



are appropriate for corporate and individual investors as a means to park their surplus funds for

short periods.

Gilt Fund

These funds invest exclusively in government securities. Government securities have no default

risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic

factor as is the case with income or debt oriented schemes.

Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P

NSE 50 index (Nifty), etc These schemes invest in the securities in the same weight age

comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or

fall in the index, though not exactly by the same percentage due to some factors known as

"tracking error" in technical terms. Necessary disclosures in this regard are made in the offer

document of the mutual fund scheme. There are also exchange traded index funds launched by the

mutual funds, which are traded on the stock exchanges.

Sector specific funds/schemes

These are the funds/schemes, which invest in the securities of only those sectors or industries as

specified in the offer documents. E.g. Pharmaceuticals, Software, Fast Moving Consumer Goods

(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of

BABASAB PATIL

21


22/81



the respective sectors/industries. While these funds may give higher returns, they are more risky

compared to diversified funds. Investors need to keep a watch on the performance of those

sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act,

1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity

Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax

benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth

opportunities and risks associated are like any equity-oriented scheme.

Load or no-load Fund

A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each time one buys

or sells units in the fund, a charge will be payable. This charge is used by the mutual fund for

marketing and distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as well as

exit load charged is 1%, then the investors who buy would be required to pay Rs.10.10 and those

who offer their units for repurchase to the mutual fund will get only Rs.9.90 per unit. The investors

should take the loads into consideration while making investment as these affect their

yields/returns. However, the investors should also consider the performance track record and

service standards of the mutual fund, which are more important. Efficient funds may give higher

returns in spite of loads. A no-load fund is one that does not charge for entry or exit. It means the

BABASAB PATIL

22


23/81



investors can enter the fund/scheme at NAV and no additional charges are payable on purchase or

sale of units.

Advantages of Mutual Fund;

Professional Management: Qualified professionals manage your money but they are not

alone. They have a research team that continuously analyses the performance and prospects

of companies. They also select suitable investment to achieve the objective of the scheme,

so you see that it is a continues process that takes time and expertise that will add value to

your investment. These fund managers are in a better position to manage investments and

get a higher return.

Diversification: the Clich, Dont put all your eggs in one basket. Really applies to the

concept of intelligent investing. Diversification lowers the risk of loss by spreading your

money across various industries it is a rare occasion when all stocks decline at the same

time and in the same proportion.

Choice of schemes: Mutual Fund offers a variety of schemes that will suit individuals

needs over a lifetime. When you enter a new stage in your life, all you need to do is sit

down with your investments advisers who will help you to re-arrange your portfolio to suit

your altered life style.

Affordability: As small investors, we may find that it is not possible to buy shares of

larger corporations. Mutual funds generally buy and sell securities in large volumes, which

allow investors to benefit from lower trading costs. The smallest investor can get started on

BABASAB PATIL

23


24/81



mutual funds because of the minimal investment requirements. We can invest with a

minimum of Rs. 500 in Systematic Investment Plan (SIP) on a regular basis.

Tax benefits: Investments held by investors for a period of 12 months or more qualify for

capital gains and will be taxed accordingly. These investments also get the benefit of

indexation. And also the dividend received by an investor is tax free in the hands of

investors.

Liquidity: with open-end funds, we can redeem all or part of investment any time when we

wish and receive the current value of the shares or the NAV related price. Funds are more

liquid than most investments in shares, deposits and bonds and the process is standardize,

making it quick and efficient so that we can get your cash in hand as soon as possible.

Rupees Cost Averaging: Through using this concept of investing the same amount

regularly, mutual funds give you the advantage of getting the average unit price over the

long-term. This reduces your risk and also allows you to discipline yourself by actually

investing every month or quarterly and not making sporadic investments.

The Transparency of Mutual Funds: The performance of a mutual fund is reviewed by

various publications and rating agencies, making it easy for investors to compare one to the

other. Once we became part of mutual fund scheme, we were provided with regular

updates, for example daily NAVs, as well as information on the specific investments made

and the fund managers strategy and out look of the scheme.

BABASAB PATIL

24


25/81



Regulations of Mutual Funds: All mutual funds are required to register with SEBI. They

are obliged to follow strict regulations designed to protect investors. All operations are also

regularly monitored by the SEBI.

Disadvantages Of Mutual Fund

Mutual funds have their drawbacks and may not be for everyone:

No Guarantees: No investment is risk free. If the entire stock market declines in value, the

value of mutual fund shares will go down as well, no matter how balanced the portfolio.

Investors encounter fewer risks when they invest in mutual funds than when they buy and

sell stocks on their own. However, anyone who invests through a mutual fund runs the risk

of losing money.

Fees and commissions: All funds charge administrative fees to cover their day-to-day

expenses. Some funds also charge sales commissions or "loads" to compensate brokers,

financial consultants, or financial planners. Even if you don't use a broker or other financial

adviser, you will pay a sales commission if you buy shares in a Load Fund.

Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20

to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales,

you will pay taxes on the income you receive, even if you reinvest the money you made.

BABASAB PATIL

25


26/81



CONTENTS

- Organization Profile

- Sampling

- Date Collection Methods

- Measuring Tools

BABASAB PATIL

26


27/81



RELIANCE MONEY

The Mutual Fund

About Reliance Mutual Fund

Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882

with Reliance Capital Limited (RCL), as the Settlor/Sponsor and Reliance Capital Trustee Co.

Limited (RCTCL), as the Trustee.

RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration

number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been

changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBI's letter no.

IMD/PSP/4958/2004 date 11th. March 2004. 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.

BABASAB PATIL

27


28/81



The main objectives of the Trust are :

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;

To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on

their savings

To take such steps as may be necessary from time to time to realize the effects without any

limitation

Vision, Mission & Market Strategy

Vision statement

Empowering everyone to live their dream

Mission statement-

To offer unparalleled value by providing the customer transparent, convenient and

effective anytime-anywhere integrated financial transaction capability

Marketing strategy- to provide

Simple, easy-to-understand, safe and secure trading platform/software

Uncomplicated, easy-to-understand brokerage/trading cost structure without any

riders

Easy access to the financial market through convenient modes of distribution

BABASAB PATIL

28


29/81



Sound, genuine, unbiased advise individual investments.

Detail Study about the company

The easiest, fastest and most convenient way to carry out your financial transactions is now at your

fingertips! Reliance Money offers you the widest range of asset classes to trade in: Equity,

Derivatives, Commodities and Forex. Also invest on-line in Mutual Funds, IPOs and Insurance

products (Life & General). All this through one single window. Reliance Money is a state-of-the-

art financial transaction platform, which enables you to conduct your financial transactions in cost

effective, convenient and secure manner. Reliance Money has introduced several never . before

features and thereby changed the way you will invest:

1. Flat Fees instead of Brokerage - Put your money into investments, not into brokerage. Pay a

flat fee of Rs. 500/- and transact as much you want upto Rs. 1crore or for 2 months (whichever is

earlier). It.s never happened before anywhere in the world!

2. Trading Kiosks - No matter if you don.t have access to a computer or the Internet. You will

find exclusive Reliance Money Trading Kiosks at convenient locations throughout your city. These

internet-enabled Kiosks bring the market to you, wherever you are.

3. Security Token - The Reliance Money security token is so hi-tech, it almost defies belief. This

small, portable plastic device flashes a unique number that changes every 36 seconds, ensuring that

the number used for an earlier transaction is discarded. This number works over and above your

normal login and password, serving as a third level of protection that guarantees your account total

safety.

BABASAB PATIL

29


30/81



4. Call N Trade - You don.t have to access your computer to trade or invest.With our Call N

Trade facility, you can place orders over the phone.

5. Multiple Offerings - Along with equity, you can also trade / invest in Commodities (gold,

silver, base metals and other agri commodities to name a few), Derivatives, Forex (RBI allows you

to remit US$25,000 per calendar year), Mutual Funds, IPOs and Insurance products (Life &

General).

6. Widest Network: Reliance Money has a network of branches all over the country with

associates who will assist you with your financial investment requirements.

7. Other value - added Services: -Reliance Money provides:

Research, market views and stock views from independent experts, with an enviable

track record

LIVE news from Dow Jones, Capital Market and Commodities Control

CEOs. / experts. views on economy and the financial market

Personal Finance planning tools that help you plan your investments, retirement, tax etc.

Portfolio Tracker that will help you track your investments from one single

screen

Risk Analyzer to analyz e your risk profile and get a suitable investment portfolio plan

using our Asset Allocator.

Knowledge Centre will help you understand investing and trading basics and also delve

into advanced concepts like trading strategies

Market Watch, a unique tool that will help you track your favorite companies. Just

BABASAB PATIL

30


31/81



configure it and get real time quotes, news, views, result etc. Our technology allows you to

detach it from the main screen and place it on your desktop.

Products and Services

A product for every need: Reliance Money is the most comprehensive platform which allows you

to invest in Shares, Mutual Funds, Derivatives (Futures & Options), Commodities, Forex, IPOs,

Insurance and other financial products. Simply put, we offer you a product for almost every

investment need.

Investing in Mutual Funds:

Reliance Money brings you a unique, hassle-free and paperless way to invest in Mutual Funds.

You can now invest on-line in Mutual Funds through Reliance Money No more filling application

forms manually or any going through other paperwork. You need no signatures or proof of identity

for investing. Once you place a request for investing in a particular fund, there are no manual

processes involved. Your bank funds are automatically debited or credited while simultaneously

crediting or debiting your unit holdings.You also get control over your investments with on-line

order confirmations and order status tracking. You get to know the performance of your

investments through online updation of your portfolio with current NAVs.

Reliance Money offers you various options while investing in Mutual Funds:

Purchase: Buying of Mutual Fund units is very convenient without the hassles of filling in the

applications manually. Redemption: As with Purchases, redemptions too can be done online.

Switch: You can shift money from one scheme to another in the same mutual fund house, with the

click of a button.

BABASAB PATIL

31


32/81



Reliance Mutual Funds

Equity Schemes :

Reliance Equity Fund :

(An open-ended diversified Equity 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 & 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 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.

Reliance Equity Opportunities Fund :

(An Open-Ended Diversified Equity 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.

BABASAB PATIL

32


33/81



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.

Reliance Growth 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.

Reliance Index Fund :

(An Open Ended Index Linked Scheme.) The Investment Objective under the Nifty Plan is to

replicate the composition of the Nifty, with a view to endeavor to generate returns, which could

approximately be the same as that of Nifty. The Investment Objective under the Sensex plan is to

replicate the composition of the Sensex, with a view to endeavor to generate returns, which could

approximately be the same as that of Sensex.

Reliance NRI Equity Fund :

(An open-ended Diversified Equity Scheme.) 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.

Debt/Income Schemes

BABASAB PATIL

33


34/81



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.

Debt Schemes :

Reliance Monthly Income Plan :

(An Open Ended Fund. 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 unitholders and the secondary objective is

growth of capital.Primarily the investment shall be made in debt and money market securities (i.e.

80%) with a small exposure (i.e. upto 20%) in equity.

Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt Plan:

Open-ended Government Securities Scheme) 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

BABASAB PATIL

34


35/81



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. This income may be complemented by capital

appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt &

Money Instruments.

Reliance Medium Term Fund :

(An Open End Income Scheme with no assured returns.) The primary investment objective of the

Scheme is to generate regular income in order to make regular dividend payments to unitholders

and the secondary objective is growth of capital

Reliance Short Term Fund :

(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.

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. Accordingly,

investments shall predominantly be made in Debt and Money Market Instruments.

Reliance Fixed Term Scheme :

BABASAB PATIL

35


36/81



(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.

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 securitized debt and Money Market Instruments and Fixed Rate Debt

Instruments swapped for floating rate returns). The scheme shall also invest in Fixed rate debt

Securities (including fixed rate securitised debt, 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. This income may be complimented by

capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in debt

Instruments.

Reliance Fixed Maturity Fund - 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.

BABASAB PATIL

36


37/81



Reliance Fixed Maturity Fund - 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 Liquidity Fund :

(An Open - ended Liquid Scheme) The investment objective of the Scheme is to generate optimal

returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall

predominantly be made in Debt and Money Market Instruments.

Debt Option : The primary investment objective of this plan is to generate optimal returns

consistent with moderate level of risk. This income may be complemented by capital appreciation

of the portfolio. Accordingly investments shall predominantly be made in Debt & Money Market

Instruments.

Equity Option : The primary investment objective is to seek capital appreciation and or consistent

returns by actively investing in equity / equity related securities.

Sector Specific Schemes

These are the funds/schemes which invest in the securities of only those sectors or industries as

specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods

(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance

of the respective sectors/industries. While these funds may give higher returns, they are

BABASAB PATIL

37


38/81



more risky compared to diversified funds. Investors need to keep a watch on the performance of

those sectors/industries and must exit at an appropriate time.

Sector Specific Schemes

Sector Funds are specialty funds that invest in stocks falling into a certain sector of the economy.

Here the portfolio is dispersed or spread across the stocks in that particular sector. This type of

scheme is ideal for investors who have already made up their mind to confine risk and return to a

particular sector

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.

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.

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 Media & Entertainment Fund

Reliance Media & Entertainment Fund is an Open-ended Media & Entertainment sector scheme.

BABASAB PATIL

38


39/81



The 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.

NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of

its liabilities. NAV per unit is simply the net value of assets divided by the number of units

outstanding. Buying and selling into funds is done on the basis of NAV-related prices. NAV is

calculated as follows:

NAV= Market value of the funds investments+Receivables+Accrued Income.

Liabilities-Accrued Expenses

BABASAB PATIL

39


40/81



Methodology

Data sources :

Primary Data: Primary data was collected by administering questionnaire. It is

systematic collection of information directly from the Reliance Mutual Fund

Investors . The basic purpose of collecting primary data is to know the preferred

Equity Schemes of Reliance Mutual funds

Secondary data: Secondary datas are collected from Reliance website, financial

journals, recent Fact sheet of Reliance mutual fund relating to mutual funds

Sampling

Sample size: 50 Reliance Mutual fund Investors

Area of research: Belgaum City.

Research approach: Survey method.

Research Instrument: Questionnaire.

.

]

BABASAB PATIL

40


41/81



CONTENTS

- Results & Discussion with Charts & Graphs

- Summary, Conclusion & a Proposed Action Plan with Resource Requirements &

Projected Benefits to the Organization

BABASAB PATIL

41


42/81



PERFORMANCE

COMPARISM OF

MUTUAL FUNDSCHEMES

BABASAB PATIL

42


43/81



Equity diversified schemes

There is lot of variety schemes offered by AMCs. Equity diversified is one of the schemeoffered by the AMC .the selection criteria of schemes is totally depend on the fund size and age of

the fund. The scheme, which has the corpus value, is more than 500Crs .

The following are the equity-diversified schemes in the selected funds. at the current date as

06/03/07

Tables for fund size

Reliance Mutual Fund Equity schemes

Scheme name Fund size DOI FUND

CLASS

Reliance Equity Fund (G)

4359.6 03/07/06 ED

Reliance Equity Opportunities Fund

(G)

2385.65 03/07/05 ED

Reliance Growth Fund (G)

3263.71 09/08/95 ED

Reliance Vision Fund (G)

2473.68 09/07/95 ED

Reliance Tax Saver (ELSS) Fund

(G)

1501.78 08/23/05 ETS

1. Return:

BABASAB PATIL

43
http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC103http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC008http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC001http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC101http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC101http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC103http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC008http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC001http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC101http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC101


44/81



Name of Scheme

DOI

(30/03/07)

Returns (annualized) 5yrs

Avg

return

1 yr 2yr 3yr 4yr 5yr

Reliance Growth Fund (G)199.52 48.21 93.23 80.40 27.21 53.64 60.54

Reliance Vision Fund (G)137.65 50.45 62.62 60.56 34.41 81.42 57.89

Reliance Tax Saver (ELLS)Fund(G)

115.193 47.48 106.91 53.02 29.77 18.07 51.05

Reliance EquityOpportunities Fund (G)

45.4206 48.24 63.85 70.46 32.17 -2.24 42.50


26.52 32.47 39.03 28.00 9.97 0.00 27.37

NAVt NAVt-1

Portfolio return: Rit =---------------------------------

NAV t-1

Where Rit is the difference between Net Asset Values for two consecutive days dividend by the

NAV of the preceding day.

2. Risk

BABASAB PATIL

44
http://c/WINDOWS/Desktop/New%20Folder/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC008http://c/WINDOWS/Desktop/New%20Folder/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC001http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC103http://c/WINDOWS/Desktop/New%20Folder/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC008http://c/WINDOWS/Desktop/New%20Folder/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC001http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC103


45/81



Beta

Scheme name 5 years avg return* Beta

Reliance Growth Fund (G) 60.54 0.91

Reliance Vision Fund (G) 57.89 0.98

Reliance Tax Saver (ELLS) Fund(G) 51.05 0.93

Reliance Equity Opportunities Fund (G) 42.50 0.96

Reliance Equity Fund (G) 27.37 0.94

* Returns are annualized

= n xy-( x)( y)

n x2-( x) 2

Where n= number of days

X =rolling returns of the NSE index

Y= rolling returns of the schemes

Beta describes the relationship between the stocks return and the index returns. it describes the

risk in the portfolio with comparing market risk as 1 .

If beta =1

One percent changes in market index return causes exactly one percent change in the stock

returns. it indicates that the stock moves in tandem with the market .

If Beta


46/81



Then the stock is less volatile compared to the market.

If Beta >1

Then the stock is more volatile compared to the market. The stock value

With more then 1 beta value is considered to be risky.

IfBeta ve: native Beta indicates that the stock returns moves in the opposite direction to themarket return.

Standard deviation

BABASAB PATIL

46


47/81



It is used to measure the variation in individual returns from the average expected

returns over a certain period. Standard deviation is used in the concept of risk of a portfolioof investments. Higher standard deviation means a greater fluctuation in expected return.

Name of Scheme

DOI

(30/03/07)

Returns (annualized) 5yrs

Avg

return

SD1 yr 2yr 3yr 4yr 5yr

Reliance Growth Fund (G)199.52 48.21 93.23 80.40 27.21 53.64 60.54 23.55

Reliance Vision Fund (G)

137.65 50.45 62.62 60.56 34.41 81.42 57.89 15.43Reliance Tax Saver (ELLS) Fund(G)

115.193 47.48 106.91 53.02 29.77 18.07 51.05 30.59

Reliance Equity

Opportunities Fund (G)

45.4206 48.24 63.85 70.46 32.17 -2.24 42.50 26.00


26.52 32.47 39.03 28.00 9.97 0.00 27.37 14.59

Standard deviation (SD) =\/ var

Where Var = variance

Var= p (ri-E(r)) 2

Return & Risk

BABASAB PATIL

47
http://c/WINDOWS/Desktop/New%20Folder/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC008http://c/WINDOWS/Desktop/New%20Folder/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC001http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC103http://c/WINDOWS/Desktop/New%20Folder/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC008http://c/WINDOWS/Desktop/New%20Folder/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC001http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC103


48/81



Name of Scheme DOI(30/03/07) 5 yrs avgreturns sd beta

Reliance Growth Fund (G) 3263.71 60.54 23.55 0.91

Reliance Vision Fund (G) 2473.68 57.89 15.43 0.98

Reliance Tax Saver (ELLS) Fund(G) 1501.78 51.05 30.59 0.93

Reliance Equity Opportunities Fund (G) 2385.65 42.50 26.00 0.96

Reliance Equity Fund (G) 4359.6 27.37 14.59 0.94

Sharpes

BABASAB PATIL

48
http://c/WINDOWS/Desktop/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC008http://c/WINDOWS/Desktop/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC001http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC103http://c/WINDOWS/Desktop/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC008http://c/WINDOWS/Desktop/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC001http://f/india/mutualfunds/mfinfo/14/16/mfcodesearch/MRC103


49/81



Sharpes index measures the risk premium of the portfolio relative to the total amt of risk

in the portfolio. This risk premium is the difference between the portfolios average rate of returnand the risk less rate of return. The index assigns the highest values to assets that have best risk-

adjusted average rate of returns.

Where

st =Sharpes index

Rp=portfolio return

Rf=Risk free rate of return (8 %)

SD= standard deviation of the port folio

St= RP-Rf

SD

BABASAB PATIL

49

Name of Scheme DOI(30/03/07)

5 yrs avgreturnsrp rf sd st

Reliance Growth Fund (G) 3263.71 60.54 8 23.55 2.23

Reliance Vision Fund (G) 2473.68 57.89 8 15.43 3.23

Reliance Tax Saver (ELLS) Fund(G) 1501.78 51.05 8 30.59 1.40

Reliance Equity Opportunities Fund (G) 2385.65 42.50 8 26.00 1.33

Reliance Equity Fund (G) 4359.6 27.37 8 14.59 1.32


50/81



Sharpe's Ranking to Reliance EquiDiversified Schemes

0

0.5

1

1.5

2

2.5

3

3.5

Sharpes

Schemes

Performance

Reliance GrowthFund (G)

Reliance Vision

Fund (G)

Reliance Tax Save(ELLS) Fund(G)

Reliance EquityOpportunities Fund

(G)Reliance EquityFund (G)

Interpretation:

Reliance Vision Fund (G) is performing well and is ranked No 1 according to Sharpes as

it is giving higher returns compared to other Schemes.

Treynors Index:

BABASAB PATIL

50

Name of Scheme DOI(30/03/07)

5 yrs avgreturnsrp rf Beta tn

Reliance Growth Fund (G) 3263.71 60.54 8 0.91 57.74

Reliance Vision Fund (G) 2473.68 57.89 8 0.98 50.91

Reliance Tax Saver (ELLS) Fund(G) 1501.78 51.05 8 0.93 46.29

Reliance Equity Opportunities Fund (G) 2385.65 42.50 8 0.96 35.94Reliance Equity Fund (G) 4359.6 27.37 8 0.94 20.61


51/81



In Treynors higher the ratio higher the performance.

Tn =Treynors index

Rp=portfolio return

Rf=Risk free rate of return (8 %)

Formula

Tn= RP-Rf

Beta

BABASAB PATIL

51


52/81


53/81



Performance Evaluation Tables

Name of the schemeDOI

(30/06/06) Rp Beta SD Sharpes Treynors

Reliance Growth Fund (G) 3263.71 60.54 0.91 23.55 2.23 57.74

Reliance Vision Fund (G) 2473.68 57.89 0.98 15.43 3.23 50.91

Reliance Tax Saver (ELLS)Fund(G) 1501.78 51.05 0.93 30.59 1.40 46.29

Reliance Equity Opportunities Fund(G) 2385.65 42.50 0.96 26.00 1.33 35.94

Reliance Equity Fund (G) 4359.6 27.37 0.94 14.59 1.32 20.61

Analysis of Survey

BABASAB PATIL

53


54/81



1.Sources from Investors came to know about Reliance Mutual fund

Frequency Percent Valid Percent CumulativePercent

Valid Friends/Relatives 12 24.0 24.0 24.0

Newspapers/Televisions

7 14.0 14.0 38.0

Brokers/Agents 16 32.0 32.0 70.0

FinancialConsultants

15 30.0 30.0 100.0

Total 50 100.0 100.0

Sources from Investors came to know about R

Sources from Investors came to know about Relaince Mutual fund

Financial Consultant

Brokers/Agents

New spapers/Televisio

Friends/Relatives

Frequ

ency

20

10

0

Interpretation:

For the popularity of the mutual funds all the means contributed all most equally but the

dominated factor in these factors is advice from the Brokers/Agents, which contributed around

32% followed by the financial agents at 30%.

2.Reliance Schemes most preferred by investors

BABASAB PATIL

54


55/81



Frequency Percent Valid

Percent

Cumulative

PercentValid Equity 30 60.0 60.0 60.0

Debt 20 40.0 40.0 100.0

Total 50 100.0 100.0

Reliance Schemes most preferred by investors

Reliance Schemes most preferred by investors

DebtEquity

Frequency

40

30

20

10

0

Interpretation:

60% of the respondents prefer equity schemes as investors now days are ready to risk

because they are getting good returns, whereas 40% of the respondents prefer debt schemes.

. 3a.Reliance equity fund

BABASAB PATIL

55


56/81




Percent

Cumulative

PercentValid 1 9 18.0 18.0 18.0

2 1 2.0 2.0 20.0

4 30 60.0 60.0 80.0

5 10 20.0 20.0 100.0

Total 50 100.0 100.0

Reliance equity fund

Reliance equity fund

5421

Percent

70

60

50

40

30

20

10

0

Interpretation:

Reliance equity fund is ranked 4th by majority of the Investors as the returns are not so high

compared to the other Schemes of Equity.

BABASAB PATIL

56


57/81



3b.Reliance equity Opportunity fund

Frequency Percent ValidPercent

CumulativePercent

Valid 1 1 2.0 2.0 2.0

2 9 18.0 18.0 20.0

4 10 20.0 20.0 40.0

5 30 60.0 60.0 100.0

Total 50 100.0 100.0

Reliance equity Oppurtunity fund

Reliance equity Oppurtunity fund

5421

Percent

70

60

50

40

30

20

10

0

Interpretation:

Reliance Equity opportunity fund is ranked 5th by 60% of the Investors investing in Reliance

mutual fund as the returns are low and also riskier compared to other 4 schemes.

BABASAB PATIL

57


58/81



3c.Reliance Growth fund

Frequency Percent Valid PercentCumulativePercent

Valid 1 26 52.0 52.0 52.0

2 3 6.0 6.0 58.0

3 18 36.0 36.0 94.0

4 3 6.0 6.0 100.0

Total 50 100.0 100.0

Reliance Growth fund

Reliance Growth fund

4321

Percent

60

50

40

30

20

10

0

BABASAB PATIL

58


59/81



3d. Reliance Vision fund


Valid 1 2 4.0 4.0 4.0

2 24 48.0 48.0 52.0

3 16 32.0 32.0 84.0

4 7 14.0 14.0 98.0

5 1 2.0 2.0 100.0

Total 50 100.0 100.0

Reliance Vision fund

Reliance Vision fund

54321

Percent

60

50

40

30

20

10

0

3e.Reliance Tax Saver-ELSS

BABASAB PATIL

59


60/81



Frequency Percent Valid PercentCumulative

PercentValid 1 12 24.0 24.0 24.0

2 14 28.0 28.0 52.0

3 15 30.0 30.0 82.0

5 9 18.0 18.0 100.0

Total 50 100.0 100.0

4a. Safety

Freque

Valid 1 10

2 335 2

6 5

Total 50

BABASAB PATIL

60

Reliance Tax Saver-ELSS

Reliance Tax Saver-ELSS

5321

Pe

rcent

40

30

20

10

0


61/81



Safety

Safety

6521

Per

cent

70

60

50

40

30

20

10

0

Interpretation:

Out of the 50 respondents 66 % of them have rated 2 to safety because every investors

needs safety in his investment made but also some of them have given least preference to safety

because as we know higher the risk higher the return.

4b. Rate of Return

BABASAB PATIL

61


CumulativePercent

Valid 1 33 66.0 66.0 66.0

2 9 18.0 18.0 84.0

3 1 2.0 2.0 86.0

4 2 4.0 4.0 90.0

5 5 10.0 10.0 100.0

Total 50 100.0 100.0


62/81



Rate of Return

Rate of Return

54321

Pe

rcent

70

60

50

40

30

20

10

0

Interpretation:

66% of the respondents have ranked rate of return as No 1 ranking this is because of the

changing trend where people are ready to take risk but they expect good returns and higher return

each time.

4c. Liquidity


Valid 1 2 4.0 4.0 4.0

2 1 2.0 2.0 6.0

3 9 18.0 18.0 24.04 26 52.0 52.0 76.0

5 12 24.0 24.0 100.0

Total 50 100.0 100.0

BABASAB PATIL

62


63/81



Interpretation:

Out of the 50

respondents 52% of

them have ranked

liquidity as 4th ,

whereas only 10% of

them have ranked 3rd which shows liquidity is given least preference when compared to other

factors.

4d. Tax Benefit


CumulativePercent

Valid 2 2 4.0 4.0 4.0

3 26 52.0 52.0 56.0

4 9 18.0 18.0 74.0

5 1 2.0 2.0 76.0

6 12 24.0 24.0 100.0

Total 50 100.0 100.0

BABASAB PATIL

63

Liquidity

Liquidity

54321Percent

60

50

40

30

20

10

0


64/81



Tax Benefit

TaxBenefit

65432

Percent

60

50

40

30

20

10

0

Interpretation:

52% of the respondents have ranked 3rd for tax benefit which shows people give

importance for tax benefit as it saves the investors money.

4e. Brand name


CumulativePercent

Valid 2 5 10.0 10.0 10.0

3 2 4.0 4.0 14.0

4 13 26.0 26.0 40.05 18 36.0 36.0 76.0

6 12 24.0 24.0 100.0

Total 50 100.0 100.0

BABASAB PATIL

64


65/81



Brand name

Brand name

65432

Percent

40

30

20

10

0

Interpretation:

36% of the respondents have ranked 5th to Brand which shows importance is given to

brand name of the company in which investors are investing as it is shows the credit worthiness of

the company.

4f. Flexibility


CumulativePercent

Valid 1 5 10.0 10.0 10.0

3 12 24.0 24.0 34.0

5 12 24.0 24.0 58.0

6 21 42.0 42.0 100.0

Total 50 100.0 100.0

BABASAB PATIL

65


66/81



Flexibility

Flexibility

6531

Perc

ent

50

40

30

20

10

0

Interpretation:

42% of the respondents have ranked 6th to Flexibility which shows not much importance is

given to flexibility as far as investors are getting good return from the schemes.

5a. Reliance Mutual Fund


Percent

Cumulative

PercentValid 1 14 28.0 28.0 28.0

2 34 68.0 68.0 96.0

4 2 4.0 4.0 100.0

Total 50 100.0 100.0

BABASAB PATIL

66


67/81



Reliance Mutual Fund

Reliance Mutual Fund

421

Percent

80

60

40

20

0

Interpretation:

Majority of the respondents have ranked Reliance mutual funds as 2nd when compared to

the other 4 companies so this shows that in a short span of time Reliance has made a good image in

the eyes of the investors.

5b. HDFC Mutual Fund


CumulativePercent

Valid 1 2 4.0 4.0 4.0

2 1 2.0 2.0 6.0

3 35 70.0 70.0 76.0

4 9 18.0 18.0 94.0

5 3 6.0 6.0 100.0

BABASAB PATIL

67


68/81



Total 50 100.0 100.0

HDFC Mutual Fund

HDFC Mutual Fund

54321

Percent

80

60

40

20

0

Interpretation:

Majority of the investors have ranked HDFC mutual fund as 3rd

when compared to other

mutual fund so comparatively it is doing well.

5c. Franklin Templeton Mutual Fund


Valid 1 32 64.0 64.0 64.0

2 15 30.0 30.0 94.0

3 2 4.0 4.0 98.0

4 1 2.0 2.0 100.0

Total 50 100.0 100.0

BABASAB PATIL

68


69/81



Franklin templeton Mutual Fund

Franklin templeton Mutual Fund

4321P

ercent

70

60

50

40

30

20

10

0

Interpretation:

Franklin has been ranked NO 1 mutual fund company by the respondents when compared

to the other mutual funds as it has maintained its returns over a long period of time.

5d. UTI mutual Fund


Valid 1 1 2.0 2.0 2.0

3 10 20.0 20.0 22.0

4 5 10.0 10.0 32.05 34 68.0 68.0 100.0

Total 50 100.0 100.0

BABASAB PATIL

69


70/81



UTI mutual Fund

UTI mutual Fund

5431

Percent

80

60

40

20

0

Interpretation:

Majority of the investors are not preferring UTI mutual funds as their returns are very low

when compared to their previous records and so it is been ranked 4 th by the investors.

5e. ICICI mutual fund

Frequ

Valid 1 1

3 3

4 33

5 13

Total 50

Interpretation:

BABASAB PATIL

70

ICICI mutual fund

ICICI mutual fund

5431

Percent

70

60

50

40

30

20

10

0


71/81



Majority of the investors are not preferring UTI mutual funds as their returns are very low

when compared to other 3 companies but it is ranked 4 th that shows it is performing good than UTI

mutual fund.

Findings

32% of the Investors have come to know about Reliance mutual fund through

Brokers/Agents followed by 30% who have come to know through Financial

Consultants

60% of the Investors are giving more preference to Equity schemes as they are giving

higher return whereas 40% of them prefer Debt Schemes because of the Safety they

provide

52% of the investors prefer Reliance Growth Fund followed by Reliance Vision Fund and

other Schemes.

66% of the investors give most importance to Rate of return as they expect higher and

higher returns followed by Safety as it is also important aspect of investors.

Reliance Mutual Fund is Ranked 2nd by the Investors i.e. 68% of them have ranked

Reliance as 2nd and Franklin Templeton is Ranked 1st.

BABASAB PATIL

71


72/81



SUGGESTIONS

Holding a seminar and presentations or Investors meet in the stock broking firm help the

investors to remove any misconception regarding the Mutual Fund and this will create

awareness of Mutual fund.

Agents are the main person who influences the investment decision. Company can hire

fresh graduates train them and sponsor for the AMFI exam just like insurance companies

who conduct IRDA training. This will increase the feet on street for the mutual fund

companies.

Company has to provide timely services to its customers so that it can compete with its

competitors like Franklin Templeton and HDFC.

CONCLUSION

After the analysis made on the performance of Equity Schemes of Reliance

Mutual Fund I can conclude that Equity schemes are most preferred by Investors and overall

BABASAB PATIL

72


73/81



Reliance Vision Fund and Reliance Growth scheme are doing extremely well in the market

satisfying the customer wants of high returns and also through survey conducted it is clear that

Reliance is performing quite well so it has been ranked 2 nd among the selected companies.

From the study we also came to know that according to Sharpe s Reliance Vision fund is

ranked First but according to Treynors Reliance growth fund is ranked First.

CONTENTS

- QUESTIONAREE

BABASAB PATIL

73


74/81



- ANNEXURE- BIBLOGRAPHY

QUESTIONNAIRE

Dear Sir/Madam:

Personal Details:

Name : _____________________________________________

Address : _____________________________________________

Occupation : _____________________________________________

Contact No : _____________________________________________

BABASAB PATIL

74


75/81



1. How did you come to know about Reliance mutual Fund?

Friends /Relatives News papers / magazines

Brokers/Agents Financial consultants.

Other_________________________

2. Which Schemes of Reliance Mutual fund would you prefer the most?

Equity Schemes Debt Scheme

3. Which Equity Scheme you prefer the most in Reliance Mutual Fund?(Rank them from 1 to 5, 1 being the most preferred and 5 being the least)

Reliance Growth [ ]

Reliance Vision Fund [ ]

Reliance Equity Opportunity Fund [ ]

Reliance Tax Saver (ELSS) Fund [ ]

Reliance Equity Fund [ ]

4. What factors do you consider while investing in mutual fund?(Rank them from 1 to 6. No1 for preferred and No 6 for least preferred)

Safety Rate of return

Liquidity Tax benefit

Flexibility Brand Name

5. How would you rate Reliance mutual fund when compared to the other mutualFund? (Rank them from 1 to 5, 1 being the Highest & 5 being the lowest).

BABASAB PATIL

75


76/81

C

comparative study on performance of equity schemes of reliance mutual fund mba project report

Documents