A

Project Study Report

On

Training Undertaken at

Reliance Mutual Fund

“FUTURE OF MUTUAL FUND”

Submitted in partial fulfillment for the award of degree of

Master of Business Administration

Submitted by Submitted to:

GAURI SHANKAR PROF: ASHWINI AGARWAL

MBA PART III (DIRECTOR of G.D Memorial

College Of Management &

Technology, Jodhpur)

2007-2009

Facts and finding

Questionnaire for customer

Name: ______________________________________

Age: __________

Address: _____________________________________

Phone no. ___________________________________

Email._______________________________________

1. Do you know, what is mutual fund?

a) Yes b) no

2. Do you want to invest your money into the mutual fund?

a) Yes b) no

3. Is Mutual fund always risk free?

a) yes

b) No

c) I don’t know

4. Do you want to invest your money into the given following sector?

a) Mutual fund

b) Property

c) Gold

d) Shares

e) Insurance

5. If yes, Which AMC (asset Management Company) will you prefer?

a) Reliance mutual fund

b) HDFC mutual fund

c) Birla sun life mutual fund

d) Kotak Mahindra mutual fund

e) other

6. How many AMC’s mutual fund do you have?

a) One

b) Two

c) More than two

d) None

7. According to you which company has more demand in the market?

a) Reliance mutual fund

b) HDFC mutual fund

c) Birla sun life mutual fund

d) Kotak Mahindra mutual fund

e) other

8. Which AMC provides better service?

a) Reliance mutual fund

b) HDFC mutual fund

c) Kotak Mahindra mutual fund

d) other

9. Are you satisfied by the services provided by reliance mutual fund?

a) Yes b) No

10. What is your view about reliance mutual fund?

___________________________________________________________________

_________________________________________________________.

Signature__________________

Result:-

From the above graph, it is clear, peoples are not aware about mutual fund because they

were not educated. According to business men, 72% people known what is mutual fund

because they aware about share market. According to government employees, 40% peoples

know what is mutual fund; they don’t intrastate in share market. Youngsters have so aware

about mutual fund. 80% youngsters known, what is mutual fund. Now, we talk about private

employees, maximum people known, what is mutual fund, it is 60%.

Result:

As shown above chart 60% business men want to invest money into the mutual fund

because they have interest in mutual fund, maximum customers want to invest our money

into the mutual fund because their interest decreased in equity market they know that in this

field, risk is low compare to share market. 40% government employees want to invest your

money into the mutual fund, 56% youngsters and 40% private employees want to invest

money into the mutual fund.

Result:

We know that mutual fund is not always risk free. According to the customers who know

what is mutual fund, they also know it is not always risk free. Problem has that maximum

people are not aware about mutual fund.28% business men don’t know, 60% government

employees, 20% youngsters and private employees don’t know it is risk free or not.

Result:

From the above graph, mostly customers want to invest your money into the gold, they

purchased gold, according to customers, price of gold always increase and this is always

profitable in future. Youngsters and business men have interest in mutual fund; they like to

take risk because they know that, if risk is high then return may be high. 28% business

men,16% government employees, 40% youngsters, 20% private employees like to invest

money into the mutual fund.

Result:

From the above graph, which is according to the primery data collected, clearly shows that

“Preference of investors are based on high return, liquidity and growth of fund”i.e. investors

give their preferences to that fund which gives them high return. 26% customers like to the

Reliance mutual fund. 14% customer’s belief HDFC mutual fund. Birla sun life mutual fund

having 15% preferred. Kotak Mahindra mutual fund having 17% preferred, other’s mutual

fund having 28% preferred.

Result:

From the above graph, which is according to the primery data collected, clearly shows that

investors have two types mutual fund, it is 18%. They want earn maximum profit from mutual

fund. These customer want to increase number of units and also invest other plan like saving

plan.

Result:

The result of the primary data shows that investors of reliance mutual fund who invested in

other mutual fund having the higher percentage prudential ICICI Mutual fund but it may be

right or wrong. As reliance is the brand name in India, the company has good reputation in

the market, almost everyone heard about the reliance and their companies. Brand

management is also required to increase the product perceived value to the customer.

That’s the reason behind 37% of the people choosing reliance.

Result:

From the above graph, which is according to the primary data collection, clearly shows that

the investors are satisfy with the services providing by the reliance AMC. 37% belief on

reliance mutual fund. It is fine compare to other’s.

Result:

74% customers of reliance are satisfied with the services provided by Reliance Mutual fund

and the rest 26% are not satisfied. Customers of today are better educated, better informed,

more discriminating, more sophisticated and are more individualistic. What they value in a

mutual fund transaction has dramatically changed.

SWOT Analysis

STRENGTHS

Corporate memberships

Wider product offerings

Greater reliance on research

Accessing equity capital markets

Foreign collaborations and joint ventures

Specialized services/niche broking

Online broking

WEAKNESS

The major weakness of the Reliance Company that only 27% customer not satisfied with

Reliance Mutual Fund. Because of there are many problems to the customer’s side.

Promotional activities of the company are not affecting the people of jodhpur.

OPPORTUNITIES:

It can advertise its products in by endorsing it through celebrities in order to fund.

Reliance mutual fund should launch a scheme for their consumer.

THREATS:

The company is facing strong competition from other companies like HDFC, Kotak Mahindra

etc.

Conclusion

With the globalize economy and immense competition among countries for faster

development of their respective economies, the significance of Mutual Funds and Foreign

investment has taken manifold. With a buoyant vibrant and experienced stock market, India

today is looking ahead to surpass China in terms of foreign Investment and growth

prospects. Stock exchange being the barometer of the economy plays a vital role in

showcasing growth of an economy and luring investment. While studying the role of Mutual

fund and FIIs in Stock Market, I discussed with a few persons who are into stock broking

business. And the information they have provided shows that though the investment and

participation of domestic investors are rising, still, they have not been able to prove

themselves to be as influential as mutual funds and FIIs.

Importance and the role of Mutual funds and FIIs play in the Indian stock market can be

seen from the fact that the recent surge in Sensex and NIFTY is attributed to the active

participation of FIIs in the Stock Market. Despite being aware of the Asian economic crisis

where FIIs role was of a major concern, the importance of foreign capital in the development

of economy can not be undermined in anyway so the people more emphasis on mutual fund

to earn more return increasing our benefit .

Recommendation and suggestions

The most vital problem spotted is of ignorance. Investors should be made aware of the

benefits. Nobody will invest until and unless he is fully convinced. Investors should be made

to realize that ignorance is no longer bliss and what they are losing by not investing.

Mutual funds offer a lot of benefit which no other single option could offer. But most of the

people are not even aware of what actually a mutual fund is? They only see it as just another

investment option. So the advisors should try to change their mindsets. The advisors should

target for more and more young investors. Young investors as well as persons at the height

of their career would like to go for advisors due to lack of expertise and time.

The advisors may try to highlight some of the value added benefits of Mutual funds such as

tax benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these

benefits are not offered by other options single-handedly. So these are enough to drive the

investors towards mutual funds. Investors could also try to increase the spectrum of services

offered.

Now the most important reason for not availing the services of advisors was spotted was

being expensive. The advisors should try to charge a nominal fee at the beginning. But if not

possible then they could go for offering more services and benefits at the existing rate. They

should also maintain their decency and follow the code of ethics so that the investors could

trust upon them. Thus the advisors should try to attract more and more persons and turn

them into investors and finally their clients.