A SURVEY REPORT

ON

“AWARENESS AND PERCEPTION OF MUTUAL FUND”

BY

AJAY SINGH RATTHORE (3003)MBA II

JODHPUR INSTITUE OF MANAGEMENTJODHPUR.

ORGANISATION

TABLE OF CONTENTS

Acknowledgement………………………………………………….

Abstract…………………………………………………………….

CHAPTER I……………………………………………………….

Objective

Limitation

Methodology

CHAPTER II………………………………………………………

Industry profile

History and organization of Mutual Fund in India

Mutual Fund companies in India

Recent trend in Mutual Fund Industry

CHAPTER III……………………………………………………..

Introduction about Mutual Funds

Mutual fund : why?

Mutual fund :what is it ?

Mutual fund :what is it made of?

Different type of MF

CHAPTER IV…………………………………………………….

Company profile

Introduction

Product and service of reliance MF

Why Reliance Mutual Fund ?

CHAPTER V……………………………………………………..

SWOT Analysis

CHAPTER VI…………………………………………………….

Analysis and interpretation of Mutual of data

CHAPTER VI………………………………………………… ..

Findings

CHAPTER VIII…………………………………………………

Recommendation

CHAPTER IX…………………………………………………..

Conclusion

CHAPTER X…………………………………………. ……….

Objectives

Limitation

CHAPTER XI……………………………………………………..

Questionnaire

Bibliography…………………………………………………….

ACKNOWLEDGMENT

I am grateful to all those who have helped me directly or indirectly in

company this project . I firmly believe that there is always scope for

improvement and accordingly. I shall took forward to received

suggestions.

First of all I would like to thank God for his grace .I am

further thankful to Reliance Mutual Fund ,Jodhpur .which give me

chance to held my project study upon of it

. I exuberantly thankful to Mr. Pawan Joshi (Relationship

manager) I further want to thank to Mr. Arvind Kuri who guide me and

help taking right direction in field work. I further welcome inspiration

and suggestion to make it best.

I sincerely believe that the road of improvement is never

ending. Hence I shall forward to end gratefully acknowledge all

suggestions received. I am highly grateful to Dr. Abha Purohit faculty

of JIM, Jodhpur for acting as a Guiding star for me. Who helped me in

their own way to complete this interim report. my sincere apologies is

who helped me in a variety of wage and Whose name could not be

individually acknowledged.

AJAY SINGH RATHORE

(3003)

ABSTRACT

Probably nothing can define the spirit of being ‘mutual’ better than this verse.

And who else to understand it better than the mutual fund industry. It seems

the mutual fund industry in India is slowly but surely beginning to recognize

this aspect for the better. Today, there is greater emphasis on the role of the

industry, the regulator. Securities and Exchange board of India (SEBI) and

industry body, Association of Mutual Funds in India (AMFI) on creating

awareness among investors and improving investor services. In fact, the

efforts of both the regulator as well as AMFI are laudable for promoting the

cause of investor education religiously. The ‘one product caters to all needs’

approach has given way to offering products which suite the specific needs of

investors ala product innovation. There is also increased emphasis on

convenience in terms of comfortable transaction services to investors by

using delivery or distribution platforms like the Internet, ATMs, Corporate

brokers, etc. Infect, distribution innovation has come to play a key role in the

growth of the industry. Industry players are using different distribution

channels to increase their market penetration. However, a significant change

that is being witnessed now is the swift response on part of the regulator to

safeguard investors’ interests. Thanks to the collective efforts of SEBI and

AMFI, and also the industry players, the domestic mutual fund industry has

been untouched by the depression of late trading, inside trading etc., which

affected the US Mutual Fund industry in recent times. However, that is not to

say that the Indian Mutual Fund Industry is completely problem-free. Issues

such as low penetration in both semi

urban as well rural areas (mutual funds have so far been largely and urban

affair that too in big cities), poor investor awareness and exploitation of this

fact by industry players, as demonstrated by the mutual fund IPO commotion

and excessive focus on corporate and other big pocket investors at the

expense of retail investors are some of the issues that industry needs to

address.

With the increase in domestic saving s

and improvement in deployment of investment through markets, the need and

scope for mutual fund operation has increased tremendously. Mutual funds

are not only best suited for the purpose but also are capable of meeting this

challenge effectively. Professionals who manage mutual funds are considered

to have a better knowledge of market behavior. Another important reason is

that the dividends and capital gains are reinvested automatically in mutual

funds and, hence, are not frittered away. Mutual funds also create awareness

among the urban and rural middle-class about the benefits of investments in

capital markets through profitable and safe avenues, and are able to gather a

large amount of the surplus funds available with this section.

Within short span of time mutual

fund operation has become an integral part of the Indian financial scene and

is balanced for rapid growth in the near future. The mutual fund industry has

been remarkably flexible over the last decade in spite of varying economic

conditions, capital market scams, and increasing competition. Today,

numerous schemes, tailored to meet the diversified needs of savers, are being

offered by many institutions. In this project an attempt has been made to

evaluate the awareness and perception of mutual fund on different

parameter

CHAPTER I

Objectives

Limitations

Methodology

OBJECTIVES

The main aim of undertaking this study is to accomplish the following objective:

Conducting a market survey and understanding the customer perception.

Analyzing the market survey and thereby finding out the investment pattern of the customer.

Proper understanding and evaluation of mutual funds as an investment option

Analysis customer awareness about Mutual fund.

Proper understanding and analysis of the perspective investor about this financial product .

LIMITATIONS

Though the present study aimed to achieve the above-mentioned objectives in full earnest and accuracy, it was in a weak position due to certain limitations. Some of the limitations of this study may be summarized as follows :

Getting accurate responses from the respondents due to their inherent problems was difficult. They were partial, and refused to cooperate.

Very few people have knowledge about Mutual funds and the other products of the Mutual Funds .

Locating the target respondents was very time consuming.

Sample size was limited due to the limited period of days allocated for the survey.

The selection of respondents to cover the various strata of the society

was tedious and time consuming.METHODOLOGY The objective of the present study can be accomplished by conducting a systematic market survey. Market Research is a systematic design, collection, analysis and reporting of data and finding that are relevant to different market situation facing by the company. The marketing research process that will be adopted in the present study consist of the following stages:Defining the problem and research objective:

The research objective state that what information is needed to solve the

problem. Here the objective of other research is awareness and perception

of Mutual fund as an Investment option and what are the benefits that the

investor will get by investing in Mutual funds.

1. Developing research plan:

Once the problem is defined, the next step is to prepare a plan for getting

the information needed for the research. The present study will adopt

exploratory approach where in there is a need to gather a large amount of

information before making a conclusion if required. The descriptive and

casual approaches may also be used.

2. Collection and Sources of Data:

To collect the data, relevant information is necessary as regards to the

project; as a result data was collected by using two ways:

Primary Data

Secondary Data.

Primary Data:

In this the information is being possessed with first hand information,

which is new and fresh.

The tools used by us for the primary data are:

Questionnaire

Face-to-Face Interview

Observation

Secondary data:

The information that is received with the help of Journals, Magazines,

Financial reports or which is already present with the company.

References used from management books

Gathered information through World Wide Web (www).

Support and knowledge provided by Faculty and Company guide.

3. Sampling Plan:

Sampling unit: The customers will be stratified and segmented

according to their age, income, cultural background, gender, education,

etc(Demography).

Sampling size: A survey was conducted for one hundred respondents.

4. Analyze the collected information:

This involves converting raw material in to useful information. It

involves tabulation of data and using statically measures on them for

developing frequency distribution and calculating the averages and

dispersions.

5. Report research findings:

This phase will mark the culmination of the marketing research efforts.

The report with the research finding is a formal written document.

CHAPTER II

Industry Profile

HISTORY AND ORGANIZATION OF MUTUAL

FUNDS 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 the. The history of mutual funds in India can be broadly divided into four distinct phases

First Phase – 1964-87: Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up 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 June 1987 followed by Canbank 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): With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 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. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January

2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds.

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 Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. 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. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.  

The graph indicates the growth of assets over the years. 

 

Graph 1: The graph showing Growth in assets under management through Mutual Funds

RECENT TRENDS IN MUTUAL FUND INDUSTRY

The most important trend in the mutual fund industry is the aggressive

expansion of the foreign owned mutual fund companies and the decline

of the companies floated by nationalized banks and smaller private sector

players.

Many nationalized banks got into the mutual fund business in the early

nineties and got off to a good start due to the stock market boom

prevailing then. These banks did not really understand the mutual fund

business and they just viewed it as another kind of banking activity. Few

hired specialized staff and generally chose to transfer staff from the

parent organizations. The performance of most of the schemes floated by

these funds was not good. Some schemes had offered guaranteed returns

and their parent organizations had to safekeeping out these AMCs by

paying large amounts of money as the difference between the guaranteed

and actual returns. The service levels were also very bad. Most of these

AMCs have not been able to retain staff, float new schemes etc. and it is

doubtful whether, barring a few exceptions, they have serious plans of

continuing the activity in a major way.

The experience of some of the AMCs floated by private sector Indian companies was

also very similar. They quickly realized that the AMC business is a business, which

makes money in the long term and requires deep-pocketed support in the intermediate

years. Some have sold out to foreign owned companies, some have merged with

others and there is general restructuring going on The foreign owned companies have

deep pockets and have come in here with the expectation of a long pull. They can be

credited with introducing many new practices such as new product innovation, sharp

improvement in service standards and disclosure, usage of technology, broker

education and support etc. In fact, they have forced the industry to upgrade itself and

service levels of organizations like UTI have improved dramatically in the last few

years in response to the competition provided by these.

MUTUAL FUND COMPANIES IN INDIA

List of Some of the AMCs Operating in India

Name of the AMC Nature of ownership

Alliance Capital Asset Management (I) Private Limited

Private Foreign

Birla Sun Life Asset Management Company Limited

Private Indian

Bank of Baroda Asset Management Company Limited

Banks

Bank of India Asset Management Company Limited Banks

Canbank Investment Management Services Limited Banks

Cholamandalam Cazenove Asset Management Company Limited

Private Foreign

Dundee Asset Management Company Limited Private Foreign

DSP Merrill Lynch Asset Management Company Limited

Private Foreign

Escorts Asset Management Limited Private Indian

First India Asset Management Limited Private Indian

GIC Asset Management Company Limited Institutions

IDBI Investment Management Company Limited Institutions

Indfund Management Limited Banks

ING Investment Asset Management Company Private Limited

Private Foreign

J M Capital Management Limited Private Indian

Jardine Fleming (I) Asset Management Limited Private Foreign

Kotak Mahindra Asset Management Company Limited

Private Indian

Kothari Pioneer Asset Management Company Limited

Private Indian

Jeevan Bima Sahayog Asset Management Company Limited

Institutions

Morgan Stanley Asset Management Company Private Limited

Private Foreign

Punjab National Bank Asset Management Company Limited

Banks

Reliance Capital Asset Management Company Limited

Private Indian

State Bank of India Funds Management Limited Banks

Shriram Asset Management Company Limited Private Indian

Sun F and C Asset Management (I) Private Limited Private Foreign

Sundaram Newton Asset Management Company Limited

Private Foreign

Tata Asset Management Company Limited Private Indian

Credit Capital Asset Management Company Limited

Private Indian

Templeton Asset Management (India) Private Limited

Private Foreign

Unit Trust of India Institutions

Zurich Asset Management Company (I) Limited Private Foreign

.

The sponsorers of Association of Mutual Funds in India

Bank Sponsored :

SBI Fund Management Ltd.

BOB Asset Management Co. Ltd.

Canbank Investment Management Services Ltd.

UTI Asset Management Company Pvt. Ltd.

Institutions:

GIC Asset Management Co. Ltd.

Jeevan Bima Sahayog Asset Management Co. Ltd.

Private Sector

Indian:

BenchMark Asset Management Co. Pvt. Ltd.

Cholamandalam Asset Management Co. Ltd.

Credit Capital Asset Management Co. Ltd.

Escorts Asset Management Ltd.

JM Financial Mutual Fund

Kotak Mahindra Asset Management Co. Ltd.

Reliance Capital Asset Management Ltd.

Sahara Asset Management Co. Pvt. Ltd

Sundaram Asset Management Company Ltd.

Tata Asset Management Private Ltd.

Predominantly India Joint Ventures:

Birla Sun Life Asset Management Co. Ltd.

DSP Merrill Lynch Fund Managers Limited

HDFC Asset Management Company Ltd

Predominantly Foreign Joint Ventures:

ABN AMRO Asset Management (I) Ltd.

Alliance Capital Asset Management (India) Pvt. Ltd.

Deutsche Asset Management (India) Pvt. Ltd.

Fidelity Fund Management Private Limited

Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.

HSBC Asset Management (India) Private Ltd.

ING Investment Management (India) Pvt. Ltd.

Morgan Stanley Investment Management Pvt. Ltd.

Principal Asset Management Co. Pvt. Ltd.

Prudential ICICI Asset Management Co. Ltd.

Standard Chartered Asset Mgmt Co. Pvt. Ltd.

Association of Mutual Funds in India Publications

AMFI publishes mainly two types of bulletin. One is on the monthly

basis and the other is quarterly. These publications are of great support

for the investors to get intimation of the know-how of their parked

money.

CHAPTER-III

Introduction about Mutual Fund

Mutual Funds :Why ?

Professional management Diversification and Lowered risks Low costs Liquidity Transparency Flexibility Choice of schemes Tax benefits regulation

The advantages of investing in a Mutual Fund are:

Professional Management

Mutual funds hire full-time, high-level investment professionals. Funds can afford to do so as they manage large pools of money. The managers have real-time access to crucial market information and are able to execute trades on the largest and most cost-effective scale.

Diversification

Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund unit-holders can benefit from diversification

techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities.

Low Costs

A mutual fund let's you participate in a diversified portfolio for as little as Rs.5,000/-, and sometimes less. And with a no-load fund, you pay little or no sales charges to own them.

Liquidity

In open-ended schemes, you can get your money back promptly at net asset value related prices from the mutual fund itself.

Transparency

You get regular information on the value of your investment in addition to disclosure on the specific investments made by the mutual fund scheme.

Convenience and Flexibility

You own just one security rather than many; yet enjoy the benefits of a diversified portfolio and a wide range of services. Fund managers decide what securities to trade collect the interest payments and see that your dividends on portfolio securities are received and your rights exercised. It also uses the services of a high quality custodian and registrar in order to make sure that your convenience remains at the top of our mind.

Personal Service

One call puts you in touch with a specialist who can provide you with information you can use to make your own investment choices. They will provide you personal assistance in buying and selling your fund units, provide fund information and answer questions about your account status. Our Customer service centers are at your service and our Marketing team would be eager to hear your comments on our schemes.

Mutual Funds : What is it ?

Mutual Fund Operation Flow Chart

A Mutual Fund is a trust that pools the savings of a number of investors who share

a common financial goal. 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 appreciation realized are shared

by its unit holders in proportion to 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. The flow chart below describes broadly the working of a

mutual fund:

Mutual Fund : What is it made of ?

Investors:

Every investor, given his financial position and personal disposition, has a certain

tendency preference to take risk (risk profile / risk appetite). The hypothesis is that by

taking an incremental risk (of losing capital, wholly or partly), it would be possible for

the investor to earn an incremental return.

But assuming risk without regularly monitoring it is foolhardy. Therefore, it would be

prudent for investors who take a risk to be able to manage this risk.

MF is a solution for investors who lack the time, or the inclination or the skills to

actively manage their investment risk in individual securities. They can delegate this

role to the MF, while retaining the right and the obligation to monitor their

investments in the scheme (which, in turn, invests in individual securities).

In the absence of a MF option, the moneys of such “passive” these investors would lie

either in bank deposits or other “safe” investment options, thus depriving the investors

of the possibility of earning a better return.

Investing through a MF would make economic sense for an investor if his investment,

over the medium to long term, fetches a return (net of all costs and expenses) that is

higher than what she would otherwise have earned by investing directly.

Because the goal of investing is to accumulate real wealth – an enhanced ability to pay

for goods and services – the ultimate focus of the long-term investor must be on real,

not nominal, returns.

Trustees:

Trustees are the people within the mutual fund organization, who are responsible to

ensure for ensuring that investors’ interests are properly taken care of In return for

their services, they are paid trustee fees, which is normally charged to the scheme.

Asset Management Company (AMC):

AMCs manage the investment portfolios of schemes. An AMC’s Income for an AMC

comes through from the management fees that are it charges to the schemes. The

management fee is calculated as a percentage of net assets managed. Some countries

provide for performance based management fees as well.

Distributors

Distributors earn a commission for bringing investors into the schemes of a MF. This

commission is an expense for the scheme,

although there are occasions when the AMC chooses to bear the cost, wholly or partly.

Depending on the financial and physical resources at their disposal, they distributors

could be:

Tier 1 distributors (having an owned or franchised network reaching out to

investors all across the country); or

Tier 2 distributors (regional players with some reach within their region); or

Tier 3 distributors (marginal players).

It is paradoxical that distributors earn a commission from the AMC, but are expected

to safeguard the financial health of investors from whom they do not earn a fee.

It is almost like a doctor earning a commission from the pharmaceutical company, but

expected to safeguard the physical health of the patient who does not pay him

anything.

Registrars

The investor’s’ holding in various schemes is typically tracked by the scheme’s

Registrar and Transfer agent (R&T). Some AMCs prefer to handle this role in-house.

The registrar / AMC maintains an account of the investor’s’ investments in and dis-

investment from the scheme. Requests to invest more money into a scheme, or to

recover moneys against existing investments in the scheme are processed by the R&T.

Custodian / Depository

The custodian maintains custody of the securities in which the scheme invests (as

distinct from the registrar who tracks the

investment by investors in the scheme). This ensures an ongoing independent record

of the investments of the scheme. The custodian also follows up on various corporate

actions, such as rights, bonus and dividends declared by invested companies.

In a situation where securities are increasingly being dematerialized, the role of the

depository for such independent record of investments is increasing growing.

Different types of Mutual Funds :

Wide variety of Mutual Fund Schemes exists to cater to the needs such as

financial position, risk tolerance and return expectations etc. The table

below gives an overview into the existing types of schemes in the

Industry.

TYPES OF MUTUAL FUND SCHEMES

By Structure:

Open - Ended Schemes : An open-end fund is one that is available for

subscription all through the year. These do not have a fixed maturity.

Investors can conveniently buy and sell units at Net Asset Value

("NAV") related prices. The key feature of open-end schemes is

liquidity.

Close - Ended Schemes : A closed-end fund has a stipulated maturity

period which generally ranging from 3 to 15 years. The fund is open for

subscription only during a specified period. 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 they 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 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.

Interval Schemes: Interval funds combine the features of open-ended

and close-ended schemes. They are open for sale or redemption during

pre-determined intervals at NAV related prices.

By Investment Objective :

Growth Schemes: The aim of growth funds is to provide capital

appreciation over the medium to long- term. Such schemes normally

invest a majority of their corpus in equities. It has been proven that

returns from stocks, have outperformed most other kind of investments

held over the long term. Growth schemes are ideal for investors having a

long-term outlook seeking growth over a period of time.

Income Schemes : 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 and Government

securities. Income Funds are ideal for capital stability and regular

income.

Balanced Schemes : The aim of balanced funds is to provide both

growth and regular income. Such schemes periodically distribute a part

of their earning and invest both in equities and fixed income

securities in the proportion indicated in their offer documents. In a rising

stock market, the NAV of these schemes may not normally keep pace, or

fall equally when the market falls. These are ideal for investors looking

for a combination of income and moderate growth.

Money Market Schemes: The aim of money market funds is to provide

easy liquidity, preservation of capital and moderate income. These

schemes generally invest in safer short-term instruments such as treasury

bills, certificates of deposit, commercial paper and inter-bank call

money. Returns on these schemes may fluctuate depending upon the

interest rates prevailing in the market. These are ideal for Corporate and

individual investors as a means to park their surplus funds for short

periods.

Load Funds: A Load Fund is one that charges a commission for entry or

exit. That is, each time you buy or sell units in the fund, a commission

will be payable. Typically entry and exit loads range from 1% to 2%. It

could be worth paying the load, if the fund has a good performance

history.

No-Load Funds: A No-Load Fund is one that does not charge a

commission for entry or exit. That is, no commission is payable on

purchase or sale of units in the fund. The advantage of a no load fund is

that the entire corpus is put to work. 

Other Schemes :

Tax Saving Schemes: These schemes offer tax rebates to the investors

under specific provisions of the Indian Income Tax laws as the

Government offers tax incentives for investment in specified avenues.

Investments made in Equity Linked Savings Schemes (ELSS) and

Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act,

1961. The Act also provides opportunities to investors to save capital

gains u/s 54EA and 54EB by investing in Mutual Funds, provided the

capital asset has been sold prior to April 1, 2000 and the amount is

invested before September 30, 2000.

Special Schemes :

Industry Specific Schemes : Industry Specific Schemes invest only in

the industries specified in the offer document. The investment of these

funds is limited to specific industries like InfoTech, FMCG, and

Pharmaceuticals etc.

Index Schemes : Index Funds attempt to replicate the performance of a

particular index such as the BSE Sensex or the NSE 50

Sector Specific Schemes: Sectoral Funds are those, which invest

exclusively in a specified industry or a group of industries or various

segments such as 'A' Group shares or initial public offerings

CHAPTER IV

COMPANY PROFILE

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.

OUR FOUNDER

Dhirubhai H. Ambani

Founder Chairman, Reliance Industries Limited, India

December 28, 1932 - July 6, 2002

Major Group Companies: Reliance Industries Limited, India's largest private

sector company.

Birthplace: Chorwad, village in Saurashtra (Gujarat), IndiaFather's Name: Hirachand Govardhandas AmbaniMother's Name: Jamunaben Hirachand Ambani

INTRODUCTION

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 authorized to act as Investment Manager of Reliance

Mutual Fund. The net worth of the Asset Management Company including preference

shares as on March 31, 2005 is Rs.30.13 crores.

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.

RCAM has been appointed as the Investment Manager

of "Reliance India Power Fund", a Venture Capital Fund registered with SEBI vide

Registration no.IN/VCF/05-06/062 dated June 16, 2005 but this activity is yet to

commence.

Mr. Amitabh Chaturvedi *Raheja Empress, Flat No. 1201/1202,12th Floor, Veer Savarkar Marg, Opp. Siddhi Vinayak Temple, Prabhadevi, Mumbai - 400 025

Director:Reliance Asset Management (Singapore) Pte Limited,Reliance Asset Management (Mauritius) Limited, Reliance Infoinvestments Limited.

Mr. Kanu Doshi102, Shivala, Khatau Road, Cuffe Parade, Mumbai - 400 005

Chartered Accountant

Chairman: Matrix Advisors (India) Private Limited

Director: BOB Capital Markets Limited,Peoples Financial Services LimitedAlphaplus Investment Management Private Limited.

Mr. Manu ChadhaC-35, Malcha Marg,Chankyapuri, New Delhi - 110 021

Chartered Accountant

Director:TRC Financial Services Ltd, Himalayan Crest Power Ltd, GIC Housing Finance Ltd., Kotla Hydro Power Ltd., Ispat Industries Ltd, SBI Funds Management Pvt. Ltd.

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.

Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with

Average Assets Under Management (AAUM) of Rs. 88,388 Crs (AAUM for

30th Apr 09 ) and an investor base of over 71.53 Lacs. Reliance Mutual

Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the

fastest growing mutual funds in the country. RMF offers investors a well-

rounded portfolio of products to meet varying investor requirements and has

presence in 118 cities across the country. Reliance Mutual Fund constantly

endeavors to launch innovative products and customer service initiatives to

increase value to investors. "Reliance Mutual Fund schemes are managed by

Reliance Capital Asset Management Limited., a subsidiary of Reliance

Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the

balance paid up capital being held by minority shareholders." 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

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 and

To take such steps as may be necessary from time to time to realise the

effects without any limitation.

The Sponsors

Reliance Capital Limited Corporate & Registered Office :

Reliance Capital Ltd. H Block, 1st Floor, Dhirubhai Ambani Knowledge

City, Koparkhairne, Navi Mumbai - 400 710.Tel. 022 – 30327000, Fax. 022

– 30327202

PRODUCTS AND SERVICES OF RELIANCE MF

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.

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 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

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 unit holders 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

(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 securitized 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.

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.

Reliance Regular Savings Fund

(An Open - ended scheme) 

The Investment Objectives:

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

generate optimal returns consistent with moderate level of risk. 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. 

Hybrid Option: The primary investment objective is to generate

consistent return by investing a major portion in debt & money market

securities and a small portion in equity & equity related instruments. 

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. 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

WHY RELIANCE MUTUAL FUND ?

Reliance Mutual Fund ,a part of the –Anil Dhirubhai Ambani

Group(R-ADAG) is one of the fastest growing mutual fund company

in the country.

Reliance mutual fund offer investors a well –rounded portfolio of

products to meet varying investor requirements.

Reliance mutual fund has a presence over 80 cities across the country.

Reliance mutual fund investor base of over 2 million and manages

assets over Rs.88388 crore as on 30 April 2009,

(source:www.amfiindia.com)

A fund from Reliance mutual fund ,an AMC with a established track

record of consistent return.

Investor –friendly personal and technological support.

Strong and consistent fund management team.

CHAPTER V

SWOT Analysis

STRENGTHS

Reliance Mutual Fund ,a part of the –Anil Dhirubhai Ambani

Group(R-ADAG) is one of the fastest growing mutual fund

company in the country.

Reliance mutual fund offer investors a well –rounded portfolio of

products to meet varying investor requirements.

Reliance mutual fund has a presence over 118 cities across the

country,with investor base over 71.53 lacs.

Reliance mutual fund investor base of over 2 million and manages

assets over Rs.88388 crore as on April

30,2009(source:www.amfiindia.com)

A fund from Reliance mutual fund ,an AMC with a established

track record of consistent return.

Strong and consistent fund management team.

Investor –friendly personal and technological support.

Ensures better costumer services, conveniences ,communication by efficient

network.

Quality product & services – High quality standard maintained.

Brand Name – ‘Reliance Mutual Fund ’ is popular brand name

among customers.

Good image between customers.

.

WEAKNESS

Less existence in rural areas

less expenditure on advertising and promotional schemes

OPPORTUNITIES

Jodhpur is a big industrial area so there is a huge opportunities.

Reliance mutual fund has a very good quality products &schemes

comparison to other competitor.

Reliance is first company which launched Equity fund with hedging

feature which aim to minimize risk..

Good perception among the customer.

THREATS

Less schemes provided by Reliance mutual fund comparison to

competitor.

Lot of competitor in market.

Lot of schemes are provided by competitors.

Share market may be go down in future.

The Mutual Fund is not guaranteeing or assuring any dividend/ bonus.

CHAPTER VI

Analysis and Interpretation of Data

Knowing the awareness and perception of the customers is very important

in any industry. this provide insight into the customer behavior and his

expectation from the industry players. a proper understanding of the

awareness and perception would definitely benefit the players. this survey

attempt to know the mutual fund investor better. it examines some

interesting choices of the retail investor including the reasons behind

investing in mutual funds and the risk tolerance levels of the investors.

the investor knowledge about the mutual funds and what according to

him are the best mutual funds is also analyzed. this udaipur city survey

was conducted to know the retail investor awareness and perception about

mutual funds. It is hoped that this survey in udaipur city would go a long

way in benefiting for reliance mutual fund.

The total sample for the study was 100 across Jodhpur city.

I. AN OVERVIEW :This section shows an simple overview of respondents like their age ,gender, income profile, saving habits and qualification

(a) Age-profile:

Table No. I(a) showing age profile of respondents:S. No Age No .of

respondentsPercentage

1. 20-25 19 19%2. 25-40 40 40%3. 40-55 21 21%4. 55-60 15 15%5. 60-Above 5 5%

Total 100 100%

INTERPRETATION :

In this survey I found the maximum number of respondents belongs to the age group of 25-40 years, followed by 40-55 years of age category.

(b) Gender-wise:

Table No. I(b) showing gender wise profile of respondents:S. No Gender No. of

respondentsPercentage

1. Male 92 92%2. Female 8 8%

Total 100 100%

INTERPRETATION :

Table No.I(b) represents the gender ratio of the respondents in this survey.92%of the covered respondents were male and remaining 8% were female

(c)Income Profile:

Table No. I(c) showing income wise profile of respondents:S. No Income No. of

respondentsPercentage

1. Less then 1.0 Lakh

34 17%

2. 1.0-2.0 Lakh 38 38%3. 2.0-3.0 Lakh 30 30%4. 3.0-5.0 Lakh 6 6%5. More then

5.0 Lakh4 4%

6. No response 5 5%Total 100 100%

INTERPRETATION :

In this survey I found the break up of the respondents. Around 38%of the respondents have an income between of Rs.1.0-2.0 Lakhs per annum and 30% of respondents in between 2.0-3.0 Lakhs .it display the income profile of respondents.

(d) Saving Habits :.Table No. I(d) showing saving habits profile of respondents:

S. No Savings No. of respondents

Percentage

1. Up to Rs. 2000

31 31%

2. Rs.2001-5000

33 33%

3. Rs.5001-10000

16 16%

4. Rs.10001-20000

3 3%

5. Above Rs.20001

1 1%

6. No Response 16 16%Total 100 100%

In this survey around 33% of the respondents reported to have a saving in the range of Rs.2001-5000 per month .only 1% of the respondents reported having in higher bracket i.e more then 20001 per month.

(e)Qualification :

Table No. I(e) showing Qualification profile of respondents:S.No Qualification No. of

respondentsPercentage

1. Undergraduates 6 6%2. Graduates 39 39%3. Postgraduates 40 40%4. Others 1 1%5. No response 14 14%

Total 100 100%

INTERPRETATION :

The surveyed group are well educated group with 40%being post graduates and 39%being graduates. around 6% of the samples collected were undergraduates.

II. KNOWLEDGE OF MUTUAL FUNDS : In the survey ,I attempted to understand from the investors their knowledge of Mutual fund.

(a)Knowledge of Mutual Fund:

Table No. II(a) showing knowledge of mutual fund of respondents:S.n No Knowledge

of Mutual Funds

No. of respondents

Percentage

1. Very good 4 42. Good 9 93. Average 19 194. Poor 64 645. No response 4 4

Total 100 100%

INTERPRETATION :

In this survey it was found that 64% of the respondents don’t’ know or their knowledge is very poor about Mutual funds. they ,while 4% respondents rated their understanding as very good about Mutual funds. it shows knowledge of Mutual funds are very low..

(b) Knowledge related to share market:

Table No. II(b) showing knowledge related to share market of respondents:

S. No Knowledge related to share market

No. of respondents

Percentage

1. Yes 32 32%2. No 64 64%3. Can’t say 4 4%

Total 100 100%

INTERPRETATION :

It was found that 64% of the respondents don’t know that the Mutual fund is related to share market. they also don’t know that Mutual funds returns is affected by the fluctuation in share market.

III. Investment objective/decisions :This section of survey was aimed at understanding the main reason behind the investment decision made by an individual. I tried to catch the factor that contribute to making of an investment portfolio off an individual.

(a)Investment objective:

S. No Investment objective

No. of respondents

Percentage

1. Capital Gain 21 21%2. Generate

Regular return

6 6%

3. Secure Future

59 59%

4. Tax benefits 14 14%Total 100 100%

INTERPRETATION :

Total number of 100 responses were generated for this question and multiple response were sought for the various investment objectives. the analysis brings out the fact that investor were more concerned about the secure future(59%) and capital gains(21%), and after that they considered tax benefits(14%) and regular return(6%) as their main investment objectives.

(b)Decision affecting Factors:

S. No Decision affecting Factors

No. of respondents

Percentage

1. Economic scenario

19 19%

2. Company image

44 44%

3. Fund performance

21 21%

4. Fund manager image

2 2%

5. Tax incentive 14 14%Total 100 100%

INTERPRETATION :

There are certain overall factors that tend to affect the investment decision decision of the investor, such as economic scenario. I tried to know the respondents opinion on these macro factors that further tend to affect their investment decisions. This survey showed that company image acts as the determining factor for their investment with 44%.the second most important factor was fund performance(21%) and economic scenario(19%).

(c)Information sources regarding Mutual Funds:

S. No Information sources

No. of respondents

Percentage

1. Print media 29 29%2. Electronic

media21 21%

3. Friends/Relative

6 6%

4. Financial advisors

19 19%

5. Personal analysis

4 4%

6. Agents 21 21%Total 100 100%

INTERPRETATION :In this survey I asked from the respondents about the kind of media that affect their investment decision.29% of the respondents said that the print media is the major influencer in making their investment decisions, electronic media(21%) and agents(21%) were the second major influencer in investment decision making.

(d)Priority of reason for investment:

S. No Priority for investment

No. of respondents

Percentage

1. Saving for future

51 51%

2. Tax incentive 14 14%3. Returns 23 23%4. Future

outlook7 7%

5. Brand value 2 2%6. Risk factors 3 3%

Total 100 100%

INTERPRETATION:

In this survey I found that saving for the future was the foremost important criteria for investment in the minds of investors (51%),while 23%respondents said that they considered the returns before making investment decisions.

IV. Risk-Return profile :In my study I also tried to understand the risk and return matrix of an individual investor. this was done in order to obtain information Information on the relationship between the kind of funds an individual investor opts to invest in and the relative expectation he has on the return front.

(a)Investment Avenues:S. No Investment

AvenuesNo. of respondents

Percentage

1. Post office schemes

12 12%

2. Insurance 4 4%3. Banks 66 66%4. Share market 3 3%5. Mutual funds 7 7%6. Govt.

securities8 8%

Total 100 100%

INTERPRETATION:

The risk return matrix of an individual is the key factor in framing his investment portfolio. I asked the respondents to select the investment avenues they would prefer to keep their investment portfolio. 66% of investor preferred to have banks savings as one of the investment avenue., while 12% of the investor said that they would certainly would like to have post office schemes as one of their preferred investment avenue.

(b)Return expectation from Mutual funds:

S. No Return expectation from Mutual funds

No. of respondents

Percentage

1. 5%-10% 5 5%2. 11%-15% 24 24%3. 16%-20% 31 31%4. More then

20%16 16%

5. Can’t say 24 24%Total 100 100%

INTERPRETATION:

In this survey when I came to return expected ,I found that 31% of the investor are expecting a return in range of 16%-20%,while 24%of the investor are expecting 11%-15% rate of return but 24% of investor can’t said about return expectation.

(c) Investment pattern preferred in Mutual fund by investor :

S. No

Investment pattern preferred in Mutual fund

No. of respondents

Percentage

1. Growth schemes

41 41%

2. Balanced schemes

11 11%

3. ELSS 18 18%4. Sector

specific schemes

6 6%

5. Liquid schemes

7 7%

6. Can’t say 17 17%Total 100 100%

INTERPRETATION:

The type of schemes selected for investment depends largely on the risk return matrix of an individual and the time horizon of his investment. My findings demonstrate that 41% of investors prefer to invest in growth schemes,18% of investor in ELSS schemes.

(d) Return in diversified schemes in Mutual fund :

S. No Return in diversified schemes in Mutual fund

No. of respondents

Percentage

1. Yes 23 23%2. No 77 77%

Total 100 100%

INTERPRETATION:

In this survey I tried to know the knowledge of investors about the return on diversified schemes .I found that 77%of surveyed people don’t know that the return on diversified mutual fund schemes is more then other schemes. so, it shows that vary lake of awareness about mutual funds.

(e) Sources of product information :

S. No Sources of product information

No. of respondents

Percentage

1. Company brochures

39 39%

2. Company websites

3 3%

3. Investment advisor

14 14%

4. Newspaper 37 37%5. Friends and

relatives7 7%

Total 100 100%

INTERPRETATION:

This chart represents the different sources of product information, through which investor generally tend to know regarding the mutual fund’s new schemes and products.39% of the respondents said that they receive the product information from the company brochures and 37% respondents said that they get it from newspaper.

CHAPTER VII

FINDINGS

Out of 100 people being surveyed to know the awareness and

perception among people about mutual funds, I found that 14% knew

about mutual funds who mostly invest in these funds while 86% where

not at all aware about the product and its investments

Some People were less interested in knowing about the product.

They have the impression that these funds are not safe, as the money is

locked in for a particular period, which is known as the lock in period.

Mutual funds, in a country like India is in its growth stage and it would

take some time to enter into the maturity stage.

People investing into mutual funds basically invest at the financial

year-end.

They invest into these funds mostly for tax saving purposes other than

investment or return purposes.

CHAPTER VIII

RECOMMENDATIONS & OBJECTIVES

There should be more awareness made about the Reliance Mutual Fund and their services by giving more advertisement.

The Reliance Mutual Fund should go for tie-ups with the corporate to invest in RMF.

Reliance Mutual Fund should organize some events to build its Brand Image in the minds of the people.

As per customer’s point of view, they feel that Reliance Mutual Fund should open more number of branches for the convenience of people.

OBJECTIVES

1. The main motive of my job the Reserach is to brand building of

Reliance Mutual Fund and creating awareness & sales, that is it’s an

brand building & sales orientated.

2. The objective of the Reliance MF is to create awareness of the

products among the general public and to know the perception of the

general public regarding the Mutual Funds and try to fulfill their

requirement.

3. Analyzing the market survey and thereby finding out the investment

pattern of the customer.

CHAPTER IX

CONCLUSION

AS been analyzed people are very rarely aware of mutual funds as people

were not properly educated about the policies but when made aware they

wanted to get more information about the funds by this we can say that

mutual fund is in its infant stage today but it will reach its growth stage

within no time.

Mutual fund has been compared to Unit linked polices people are more

aware of ULIP than Mutual fund which takes more customer to the

insurance sector but slowly as people are getting more aware of the funds

they will surely start investing in these funds as some of the mutual fund

companies have already started giving more than 30% returns which is

really a huge amount being 6% minimum and 10% maximum guidelines

given a company.

Mutual funds in this competitive world is very helpful for the people who

are interested into investments as this particular fund can take less

investment but give u hefty.

CHAPTER XI

Questionnaire

Age profile :

Gender :

Income profile :

Saving habits :

Qualification :

Q1. Do you know about the Mutual Funds ?

(a) Very good (b)Good (c)Average (d)Poor (e)No response

Q2. What is your objective /motive behind investment ?

(a)Capital gain (b)Generate regular(c)Secure future (d)Tax benefits

Q3. Where do you generally invest/save ?

(a)Post office schemes(b)Insurance(c)Banks(d)Share market(e)Mutual funds(f)Govt. securities

Q4. How do you prioritize the reason for investment ?[rank from 1-5,1 being highest priority]

Saving for future __________Tax incentives __________Returns __________Future outlook __________Brand value __________Risk factor __________

Q5. How did you come to know about mutual fund ?

(a)Print media(b)Electronic media(c)Friend/relative(d)Financial advisor/C.A(c)Personal analysis(f)Agents

Q6. What factors affect your decision for investment in Mutual Fund ?

(a)Economic scenario(b)Company image(c)Fund performance (d)Fund manager image(e)Tax incentive

Q7. How much return you expect from Mutual Fund ?

(a)5%-10% (b)11% -15% (c)16%-20%(d)more than 20% (e)can’t say

Q8. What kind of investment pattern you prefer in Mutual Fund ?

(a)Growth schemes(b)Balanced schemes(c)ELSS(d)Sector specific schemes(e)Income schemes(f)Liquid schemes

Q9. What are the sources of information gathering for you regarding mutual fund?

(a)Company brochures(b)Company websites (c)Investment advisor(d)Newspaper(e)Friends and relatives

Q10. Are you aware that by investing in diversified investment avenues the average rate of return would considerable go up ?

(a)Yes (b)No

Q11. Do you know that mutual fund is related to share market?

(a)yes (b)no (c)can’t say

Bibliography

WEB SITES VISITED:

www.amfiindia.com www.mutualfundsindia.com www.sebi.gov.in www.reliancemutual.com www.yahoo.com www.google.com www.rbi.org.in

BOOK REFERRED:

Marketing management by Phillip Kotler

Think Bigger ,Think Better