REVIEW OF LITERATURE AND

PROBLEM STATEMENT

Reliance Mutual Fund (RMF) has been established as a trust

under the Indian Trusts Act, 1882 with Reliance Capital Limited
(RCL), as the Settler/Sponsor and Reliance Capital Trustee Co.
Limited (RCTCL), as the Trustee. Reliance Mutual Fund has
been registered with the Securities & Exchange Board of India
(SEBI) dated June 30, 1995. The name of Reliance Capital
Mutual Fund has been changed to Reliance Mutual Fund
effective 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.

The stocks have risk, which comprises of either unique risk ,also
called as diversifiable risk or unsystematic risk and market risk
also called as non-diversifiable risk or systematic risk. There are
few problems, which reveal the necessity to analyze the risk and
return of the Mutual Funds. We can neither predict the risk involved
nor the future performance of the stock. Many Mutual Funds
schemes have not performed well due to which investor have
incurred losses. The movement of BSE-100 index depends on the
performance of the company’s stock.

If a particular industry is not in a booming stage, then the stock of

companies related to that industry would be affected. Given the
background of risk and uncertainty about investment in mutual
fund, present study tries to find out risk return taken on Reliance
mutual fund in comparison with BSE-100 index has been
undertaken.
 OBJECTIVES OF THE PROPOSED
STUDY

⇒ To study Mutual Fund Industry in India.

⇒ To study the different Schemes provided by Reliance Mutual

Fund.

⇒ To study the performance of different schemes of the Company.

⇒ To study the Risk involved in different Schemes.

⇒ To study the Monthly Returns with respect to their Benchmark.

 RESEARCH METHODOLOGY
DESCRIPTIVE RESEARCH:

In this research an attempt has been made to analyze the past

performance of the Reliance Mutual schemes and to know the
benefits to the investors. The study is to be done on different
schemes provided by the company to know the company’s
performance for the past few months and to know the risk and
returns of the funds.

METHODOLOGY OF DATA COLLECTION:

DATA COLLECTED:
 Five Years monthly Navs of different schemes
 Five Years monthly index of BSE-100& S&P CNX NIFTY

SOURCES OF DATA:

Secondary source of data

The source of data were only the secondary source as the
comparison of the schemes were done keeping BSE Sensex as the
base and thus the project did not require any first hand information
in the form of primary source.

TOOLS & TECHNIQUES USED FOR THE STUDY

Beta:
Standard deviation
Alpha
Sharpe Ratio
Treynor Ratio

CONCEPTUAL DESIGN:

Sample unit: Schemes of Reliance Mutual Fund.

Sample size: Five years monthly Net Asset Values.
 SCOPE OF THE PROPOSED STUDY

⇒ The study covers the activity of a Mutual Fund as may be

permitted at law and formulates and devises various collective
schemes of savings and investments for people in India and
abroad and also ensure liquidity of investments for the Unit
holders.

⇒ The study deploys 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 realize the
effects without any limitation.

⇒ The study was limited to just finding the risk and returns
associated with the schemes.

⇒ The study covers only the open-ended funds.

 QUESTIONNAIRE
NAME :- _______________________________________________

ADDRESS :- ____________________________________________
____________________________________________

CONTACT NO:- (O)__________ (R)__________ (M)____________

1) Which investment avenues are you aware of?

Equity /Mutual fund □

Post Office (NSC, KVP, PPF) □
Fixed Deposits □
Others □
If others please specify □
2) Do you invest in mutual funds?

Yes □ No □
3) If yes, in which assets class do you want to invest in mutual
funds?

Equity □ Debt □ Liquid □

4) Do you invest in Reliance mutual fund?

Yes □ No □
5) If yes, in which scheme would you invest in RELIANCE MUTUAL
FUND?

Equity □
Tax Saver □
Others □
 REFERENCES

Journals :-

⇒ The Economic Times

⇒ Reliance Money Factsheet and journals

⇒ The Telegraph

Websites :-

⇒ www.reliancemutual.com

⇒ www.amfiindia.com

⇒ www.valueresearchonline.com

⇒ www.moneycontrol.com

⇒ www.economictimes.com
 A SYNOPSIS ON
RELIANCE MUTUAL FUNDS
NEW DELHI
Supervisor: Submitted by:

Name:- Name:- Priya

Bhatnagar

Designation:- Enrolment No:-

08061240038

Specialization:- MBA IVth Semister

Remarks of Evaluator

Approved/Disapproved
Approved/Disapproved

(I Evaluation) (II Evaluation)

Session 2008-2010

DIRECTORATE OF DISTANCE EDUCATION

GURU JAMBHESHWAR UNIVERSITY OF

SCIENCE & TECHNOLOGY,HISAR