Professional Documents
Culture Documents
Keerthi Project
Keerthi Project
Project Report
Submitted to
By
Ms. GELIJA KEERTHI
(Regd.No.19BF1E0071)
(2019-2021)
SRI VENKATESWARA COLLEGE OF ENGINEERING
(Council for Social Development)
Approved by AICTE, New Delhi & Affiliated to JNT University, Anantapur
CERTIFICATE
Engineering, Tirupati”. To the best of my knowledge and belief the data &
information presented by him/her in the project has not been submitted earlier to
Opp. LIC Training Centre, Karakambadi Road, TIRUPATI – 517501, ANDHRA PRADESH
Phone: 0877 – 2285992 , FAX : + 91-0877-2285991 www.svcolleges.edu.in / svce@svcolleges.edu.in
DECLARATION
This is bearing Gelija Keerthi, Reg. No. 19BF1E0071 , a student of MBA in SV College
of Engineering, Tirupati, affiliated to JNTUAnantapur, Anantapuram , hereby declare that this
Project Report entitled “A Study on portfolio Management in Reliance mutual fund ltd, Tirupati ”
, is a bonafide work done by me in partial fulfillment for the award of Degree in Master of
Business Administration.
I further declare that this project work is a result of my own effort and has not been
submitted to any other University or Institution for the award of any degree diploma/ certificate
or published any time before.
(Gelija Keerthi)
Reg.No:19BF1E0071
Date:
A Project work at post graduate level is a golden opportunity for learning and self-
development. I consider myself very lucky and honored to have so many wonderful people lead
me through in completion of this project.
I feel it a great privilege to express my sincere gratitude to project guide Ms.T. Sirisha
Assistant Professor, for her valuable guidance, numerate suggestions, keen interest and constant
support throughout the project.
I offer my deep sense of gratitude to Dr. N. Sudhakar Reddy, Principal, SVCE, and
Tirupati for his moral support and permitting me to do the Project work.
I would like to thank the Faculty members, parents and friends who are directly or
indirectly involved in the execution of my project.
(GELIJA KEERTHI)
Reg.No:19BF1E0071
CHAPTER SCHEME
3.4 METHODOLOGY 42
5.1 FINDINGS 69
5.2 SUGGESTIONS 70
Chapter-5
5.3 CONCLUSION 71
BIBILIOGRAPHY 72
PORTFOLIO MANAGEMENT
CHAPTER -1
INTRODUCTION
INDUSTRY PROFILE
COMPANY PROFILE
PRODUCT PROFILE
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1.1 INTRODUCTION
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 is 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 mutual funds.
.
Investment means conversion of money/cash into the monetary asset.
Investment is a scarifying the current amount for future benefit. Investment is the
employment of funds with the aim of achieving additional income or growth in value.
The essential quality of an investment is that it involves “waiting” for reward. It
involves the commitment of resources, which have been saved or put away from
current consumption in a hope that some benefits will accrue in future. There are a
number of fields where people can invests there surplus money, just like in Bank,
Mutual fund, Insurance, Chit funds, Post office, Purchasing directly shares from the
company and many more.
Mutual Funds (MF) are one such type of investment. It 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. Mutual Fund issues
units to the investors in accordance with the quantum of m oney invested by them.
Investors of Mutual Funds are known as unit holders. The investors in the
proportion to their investments share the profit or losses. The Mutual Funds come out
with a number of schemes with different investments objectives, which are launched
from time to time. Mutual Funds are required to be registered with Securities and
Exchange Board of India (SEBI) that regulates securities before it can collect funds
from the public.
It was set up in the form of a trust that has a Sponsor, Trustee; Asset
Management the mutual fund needs to be constituted in the form of a trust and the
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instrument of the trust should be in the form of a deed registered under the provision
of the Indian Registration Act, 1908. The sponsor is required to contribute at least 40
percent of the minimum net worth (Rest 10 cores) of the asset management company.
DEFINITION:
The SEBI (Mutual Funds) Regulations 1993 define a mutual
fund as a fund established in the form a trust by a sponsor to raise monies by the
trustee through the sale of units to the public under one or more schemes for investing
in securities in accordance with these regulations.
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Funds will also usually give you a choice either to receive a check for
distributions or to reinvest the earnings and get more shares.
These could range from shares to debentures. The income earned through
these investment the capital realized by the scheme and shared by its unit holders in
proportion to the number of units owned by them .Mutual Funds in the most suitable
investment for the common man as it offer an opportunity manager portfolio at a
relatively low cost. Each Mutual fund has a defined investment objectives and
strategy. This can be explained in the following figure ………
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The new entries of mutual fund companies in India were SBI Mutual
Fund, Can bank Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank
Mutual Fund, Bank of India Mutual Fund.
Kothari Pioneer was the first private sector mutual fund company in
India which has now merged with Franklin Templeton. Just after ten years with
private sector players penetration, the total assets rose up to Rs. 1218.05 bn. Today
there are 33 mutual fund companies in India.
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HSBCMutualFund:
HSBC Mutual Fund was setup on May 27, 2002 with HSBC
Securities and Capital Markets (India) Private Limited as the sponsor. Board of
Trustees, HSBC Mutual Fund acts as the Trustee Company of HSBC Mutual Fund.
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The Indian stock markets till date have remained stagnant due to
the rigid economic controls. It was only in 1991, after the liberalization process that
the India securities market witnessed a flurry of IPOs serially. The market saw many
new companies spanning across different industry segments and business began to
flourish.
The launch of the NSE (National Stock Exchange) and the OTCEI
(Over the Counter Exchange of India) in the mid 1990s helped in regulating a smooth
and transparent form of securities trading.
SEBI (Securities and Exchange Board of India) ESTABLISHMENT OF
SEBI
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PREAMBLE
The regulatory body for the Indian capital markets was the SEBI
(Securities and Exchange Board of India). The capital markets in India experienced
turbulence after which the SEBI came into prominence. The market loopholes had to
be bridged by taking drastic measures.
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The mutual fund industry is a lot like the film star of the
finance business.Though it is perhaps the smallest segment of the industry, it is also
the most glamorous – in that it is a young industry where there are changes in the rule
of the game everyday, and there are constant shifts and upheavals The mutual fund is
structured around a fairly simple concept, the mitigation of risk through the spreading
of investments across multiple entities, which is achieved by the pooling of a number
of small investments into a large bucket. Yet it has been the subject of perhaps the
most elaborate and prolonged regulatory effort in the history o f the country.
The mutual fund industry started in India in a small way
with the UTI Act creating what was effectively a small savings division within the
RBI. Over a period of 25 years this grew fairly successfully and gave investors a good
return, and therefore in 1989, as the next logical step, public sector banks and
financial institutions were allowed to float mutual funds and their success emboldened
the government to allow the private sector to foray into this area.
The initial years of the industry also saw the emerging
years of the Indian equity market, when a number of mistakes were made and hence
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the mutual fund schemes, which invested in lesser-known stocks and at very high
levels, became loss leaders for retail investors. From those days to today the retail
investor, for whom the mutual fund is actually intended, has not yet returned to the
industry in a big way. But to be fair, the industry too has focused on brining in the
large.
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 history of mutual funds in India can be broadly divided into four
distinct phases
.
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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.
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It was with this belief that Reliance Infocomm began laying its
60,000 route kilometers of pan-India fiber optic backbone in 1999. The backbone was
commissioned on December 28, 2002, Dhirubhai’s 70th birth anniversary, first since
his sad demise on July 6, 2002.
Broking:
Reliance Money has 75,000 customers and more than
Rs.500crs daily turnover happening. It has captured 1percent of the total market share.
It also distributes life and general insurance products, mutual fund distribution,
marketing of credit cards. Only 4.9 percent of household savings invested in
equity/equity related assets. Unrealized gains of Rs.27.2 bn(consolidated) on listed
investments as on
March 31,2007 (Remember, this is inclusive of REL). Unlisted companies include
yatra.com, 44 percent stake in DTDC, 31 percent stake in BLR India, and many
others. Consumer finance and Asset Reconstruction business is yet to launch. Every
subsidiary is 100 percent owned.
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its product base. It recently set up its retail broking arm 'Reliance Money' and plans to
start its consumer finance business in this fiscal year. The company has also applied
to the Reserve Bank of India for its entry into asset reconstruction business and is
awaiting approval.
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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.
Organization Structure
Reliance Anil Dhirubhai Ambani Group
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Reliance securities:
Reliance commodities:
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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.
Debt/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, 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 the salutations.
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 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.
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CHAPTER – 2
REVIEW OF LITERATURE
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2. REVIEW OF LITERATURE
Literature on mutual fund performance evaluation is enormous. A few
research studies that have influenced the preparation of this paper substantially are
discussed in this section. Sharpe, William F. (1966) suggested a measure for
the evaluation of portfolio performance. Drawing on results obtained in
the field of portfolio analysis, economist Jack L. Trey nor has suggested a
new predictor of mutual fund performance, one that differs from virtually all those
used previously by incorporating the volatility of a fund's return in a
simple yet meaningful manner.
Michael C. Jensen (1967) derived a risk-adjusted measure
of portfolio performance (Jensen’s alpha) that estimates how much a manager’s
forecasting ability contributes to fund’s returns. As indicated by Statman (2000), the e
SDAR of a fund portfolio is the excess return of the portfolio over the return of the
benchmark index, where the portfolio is leveraged to have the benchmark index’s
standard deviation. S. Narayan Rao, evaluated performance of Indian mutual funds in
a bear market through r e l a t i ve performance index, risk-return analysis, Treynor’s
ratio, Sharpe’s ratio, Sharpe’ s measure , Jensen’s measure, and Fama’s measure.
The study used 269 open-ended schemes (out of total schemes of
433) for computing relative performance index. Then after excluding funds whose
returns are less than risk-free returns, 58 schemes are finally used for further analysis.
The results of performance measures suggest that most of mutual fund schemes in the
sample of 58were able to satisfy investor’s expectations by giving excess returns over
expected returns based on both premium for systematic risk and total risk.
BijanRoy, conducted an empirical study on conditional performance of
Indian mutual funds.
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variables improves the performance of mutual fund schemes, causing alphas to shift
towards right and reducing the number of negative timing coefficients.
Mishra, et al.,(2002) measured mutual fund performance using lower partial
moment. In this paper, measures of evaluating portfolio performance based on lower
partial moment are developed. Risk from the lower partial moment is measured
by taking into account only those states in which return is below a pre-
specified “target rate” like risk-free rate.
Kshama Fernandes(2003) evaluated index fund
implementation in India. In this paper, tracking error of index funds in
India is measured. The consistency and level of tracking errors obtained by some
well-run index fund suggests that it is possible to attain low levels of tracking
error under Indian conditions. At the same time, there do seem to be
periods where certain index funds appear to depart from the discipline
of indexation. K. Pendaraki studied construction of mutual fund portfolios, developed
a multi-criteria methodology and applied it to the Greek market of equity mutual
funds. The methodology is based on the combination of discrete and continuous
multi-criteria decision aid methods for mutual fund selection and composition.
UTADIS multi-criteria decision aid methods employed in order to develop mutual
fund’s performance models. Goal programming model is employed to determine
proportion of selected mutual funds in the final portfolios.
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By Scheme Type:
A mutual fund schemes can be classified into open-ended scheme or
close-ended 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 price
which are declare on a daily basis. The key feature of open-ended schemes is
liquidity.
Close-ended Fund/Scheme:
A Close ended fund or schemes has a stipulated maturity period,
e.g.5-7 year. 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 exchange where the units are listed. In order to provide an exit route to the
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investors, some close ended funds given option of selling back the units to the, mutual
fund through periodic repurchase at NAV related price.
SEBI regulations stipulated that at least one of the two exit routes
is provided to the investors, i.e. either repurchase facility or through listing on stock
exchanges. These mutual fund schemes disclose NAV generally on a weekly basis.
These funds invest in companies spread across sectors. These funds are generally
meant for risk-averse investors who want a diversified portfolio across sectors.
A. Bank Sponsored
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1. Indian
2. Foreign
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Diversification:
By owning shares in a mutual fund instead of owning
individual stocks or bonds, your risk is spread out. The idea behind diversification is
to invest in a large number of assets so that a loss in any particular investment is
minimized by gains in others. In other words, the more stocks and bonds you own, the
less any one of them can hurt you (think about Enron). Large mutual funds typically
own hundreds of different stocks in many different industries. It wouldn't be possible
for an investor to build this kind of a portfolio with a small amount of money.
Economies of Scale:
Because a mutual fund buys and sells large amounts of
securities at a time, its transaction costs are lower than what an individual would pay
for securities transactions.
Liquidity :
Just like an individual stock, a mutual fund allows you to
request that your shares be converted into cash at any time.
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Simplicity:
Buying a mutual fund is easy! Pretty well any bank has its own
line of mutual funds, and the minimum investment is small. Most companies also
have automatic purchase plans whereby as little as $100 can be invested on a monthly
basis.
Professional Management :
Many investors debate whether or not the professionals are any
better than you or I at picking stocks. Management is by no means infallible, and,
even if the fund loses money, the manager still gets paid.
Costs :
Creating, distributing, and running a mutual fund is an
expensive proposition. Everything from the manager’s salary to the investors’
statements cost money. Those expenses are passed on to the investors. Since fees vary
widely from fund to fund, failing to pay attention to the fees can have negative long-
term consequences. Remember, every dollar spend on fees is a dollar that has no
opportunity to grow over time.
Dilution :
It's possible to have too much diversification. Because funds
have small holdings in so many different companies, high returns from a few
investments often don't make much difference on the overall return. Dilution is also
the result of a successful fund getting too big. When money pours into funds that have
had strong success, the manager often has trouble finding a good investment for all
the new money.
Taxes:
When a fund manager sells a security, a capital-gains tax is
triggered. Investors who are concerned about the impact of taxes need to keep those
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returns, but you won't have to worry about losing your principal. A typical return is
twice the amount you would earn in a regular checking/savings account and a little
less than the average certificate of deposit (CD).
Bond/Income Funds:
Income funds are named appropriately: their purpose is to
provide current income on a steady basis. When referring to mutual funds, the terms
"fixed-income," "bond," and "income" are synonymous. These terms denote funds
that invest primarily in government and corporate debt. While fund holdings may
appreciate in value, the primary objective of these funds is to provide a steady cash
flow to investors. As such, the audience for these funds consists of conservative
investors and retirees. Bond funds are likely to pay higher returns than certificates of
deposit and money market investments, but bond funds aren't without risk. Because
there are many different types of bonds, bond funds can vary dramatically depending
on where they invest. For example, a fund specializing in high-yield junk bonds is
much more risky than a fund that invests in government securities.
Balanced Funds :
The objective of these funds is to provide a balanced mixture
of safety, income and capital appreciation. The strategy of balanced funds is to invest
in a combination of fixed income and equities. A typical balanced fund might have a
weighting of 60% equity and 40% fixed income. The weighting might also be
restricted to a specified maximum or minimum for each asset class.
Equity Funds:
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CHAPTER – 3
RESEARCH METHODOLOGY
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The main purpose of doing this project was to know about mutual fund and its
functioning.
To know in details about mutual fund industry right from its inception stage,
growth and future prospects.
To know the different schemes of mutual funds.
To know the performance of .equity and debt schemes
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To study a brief idea about the benefits available from Mutual Fund
investment.
To study an idea of the types of schemes available.
To study some of the mutual fund schemes and analyze them.
To study an idea about the regulations of mutual funds.
To know which schemes are giving the good returns to it’s unit holders .
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One can visualize the fact that detailed study is required in each practical
situation for better result. Any effort which is directed to such study for better results
is known as research.
RESEARCH METHODOLOGY
A system of models, procedures and techniques used to find the results of
a research problem is called a research methodology.
1. Primary
2. Secondary
PRIMARY:
The data, which has being collected for the first time and it is the original data.
In this project the primary data has been taken from staff and advising.
SECONDARY:
The secondary information is mostly taken from websites, books, etc.
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CHAPTER - 4
DATA ANALYSIS
&
INTERPRETATIONS
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EQUITY SCHEMES
RELIANCE GROWTH FUND - (G)
Entry load: No entry load will be charged by the scheme to the investor effective
august 2015.
Exit load: 1 percent if redeemed on or before completion of 1 year from the date of
allotment of units. There shall be no exit load after completion of 1 year.
Choice of plans and options: Under each retail and institutional plans following
options are included:
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Asset Size (Cr.) Fund Manger Launch Date Min. Inv Inc. Inv(Rs.)
7428.96 Sunil Singhania 2018 5000 100000
Asset allocation
Returns
Scheme Name 3MONTH 6MONTH 1YEAR
Nifty 0.82 4.62 21.09
Reliance Growth
4.54 10.38 40.38
Fund - (G)
Sensex 0.72 4.28 21.30
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Sectorial allocation
GROWTH PLAN:
Growth option:
10 500 5000
Bonus option:
100000/455=219.7
Total units=500+219.7
=719.7
DIVIDEND PLAN:
(40.38%) 4 2000
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2000/451=4.43
Total units=500+4.43
=504.4
Interpretation:
From the above table no 4.1 it is clearly shows that the value of this
asset is high. Per unit, unit holder gets Rs. 4 as dividend. It’s better to investor to sell
his units.
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Entry load: No entry load will be charged by the scheme to the investor effective
august2016.
Exit load:1 percent if redeemed on or before completion of 1 year from the date of
allotment of units. There shall be no exit load after completion of 1 year.
Choice of plans and options: Under each retail and institutional plans following
options are included:
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TABLE NO:4.2
Calculation of Bonus and Dividend on Reliance vision Fund
Bench mark: BSE100
Asset Size (Cr.) Fund Mngr Launch Date Min. Inv Inc. Inv(Rs.)
Ashwini
3591.84 2020 5000 100000
Kumar
Asset allocation
Returns
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Sectorial allocation
GROWTH PLAN:
Growth option:
10 500 5000
Bonus option:
100000/259.3=385.6
Total units=500+385.6
=885.6
DIVIDEND PLAN:
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1642/256=6.41
Total units=500+6.41
=506.41
Interpretation:
From the above table no 4.2 it is clearly shows that the value of this
asset is high. Per unit, unit holder gets Rs.3.2 as dividend. It’s better to investor to sell
his units.
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Entry load: No entry load will be charged by the scheme to the investor effective
august 2017.
Exit load: 1 percent if redeemed on or before completion of 15 days from the date of
allotment of units. There shall be no exit load after completion of 15 days.
Choice of plans and options: Under each retail and institutional plans following
options are included:
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TABLE NO:4.3
Calculation of Bonus and Dividend on Reliance Quant plus Fund
Bench mark: S&P CNX nifty
Asset Size (Cr.) Fund Mngr Launch Date Min. Inv Inc. Inv(Rs.)
62.7 Krishan Daga 2019 5000 100000
Returns
GROWTH PLAN:
Growth option:
10 500 5000
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Bonus option:
100000/12.06=342.5
Total units=500+342.5
=842.
DIVIDEND PLAN:
1135/9.79=115.9
Total units=500+115.9
=615.9
Interpretation:
From the above table no 4.3 it is clearly shows that the value of this
asset is low. Per unit, unit holder gets Rs.2.27 as dividend. It’s better to investor to
hold his unit, because it gives more returns than it’s unit value.
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INCOME FUNDS
RELIANCE INCOME FUND - (G)
Investment objective: The primary objective is to generate the optimal returns
consistent with moderate level of risk.
Entry load: No entry load will be charged by the scheme to the investor effective
august 2019.
Exit load: 1 percent if redeemed on or before completion of 30 days from the date of
allotment of units. There. shall be no exit load after completion of 30 days.
Choice of plans and options: Under each retail and institutional plans following
options are included:
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TABLE NO:4.4
Calculation of Bonus and Dividend on Reliance Income Fund
Asset Size (Cr.) Fund Mngr Launch Date Min. Inv Inc. Inv(Rs.)
330.55 Prashant Pimple 2020 5000 100000
Asset allocation
Returns
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Fund - (G)
Sensex 0.72 4.28 21.30
GROWTH PLAN:
Growth option:
10 500 5000
Bonus option:
100000/31.29=319.5
Total units=500+319.5
=819.5
DIVIDEND PLAN:
210/330=0.63
Total units=500+0.63
=500.63
Interpretation:
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From the above table no 4.4 it is clearly shows that the value of this
asset is low. Per unit, unit holder gets Rs.0.42 as dividend. It’s better to investor to
hold his units, because it gives more returns than it’s unit value.
Entry load: No entry load will be charged by the scheme to the investor effective
august 2019.
Choice of plans and options: under each retail and institutional plans following
options are included:
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TABLE NO:4.5
Calculation of Bonus and Dividend on Reliance Medium Term Fund
Bench mark: crisil short term bond fund index
Asset Size (Cr.) Fund Mngr Launch Date Min. Inv Inc. Inv(Rs.)
13356.67 Amit Tripathy 2020 5000 100000
Asset allocation
Returns
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Reliance Medium
1.29 2.44 4.91
Term Fund - (G)
Sensex 0.72 4.28 21.30
GROWTH PLAN:
Growth option:
10 500 5000
Bonus option:
100000/19.29=207.3
Total units=500+207.3
=707.3
DIVIDEND PLAN:
245/18.8=13
Total units=500+13
=513
Interpretation:
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From the above table no 4.5 it is clearly shows that the value of this
asset is low. Per unit, unit holder gets Rs.0.429 as dividend. It’s better to investor to
hold his units, because it gives more returns than it’s unit value.
Entry load: No entry load will be charged by the scheme to the investor effective
august 2020.
Exit load: 2 percent if redeemed on or before completion of 1 year. Nil after
completion of 1 year.
Choice of plans and options: under each retail and institutional plans following
options are included:
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TABLE NO:4.6
Calculation of Bonus and Dividend on Reliance Regular Savings
Fund
Bench mark: crisil composite bond fund index
Asset Size (Cr.) Fund Mngr Launch Date Min. Inv Inc. Inv(Rs.)
2994.33 Arpit Malaviya sep 10 2020 500 100000
Asset allocation
Returns
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Reliance Regular
Savings Fund - Debt 5.55 7.00 7.16
(G)
Sensex 0.72 4.28 21.30
GROWTH PLAN:
Growth option:
10 500 5000
Bonus option:
100000/12.79=781.1
Total units=500+781.1
=1281.1
DIVIDEND PLAN:
355/12.08=29.3
Total units=500+29.3
=529.3
Interpretation:
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From the above table no 4.6 it is clearly shows that the value of this
asset is low. Per unit, unit holder gets Rs.0.719 as dividend. It’s better to investor to
hold his units, because it gives more returns than it’s unit value.
Net Asset Value (NAV) is the actual value of one unit of a given scheme on any given
business day.
The NAV reflects the liquidation value of the fund's investments on that particular
day after accounting for all expenses.
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CHAPTER – 5
FINDINGS
SUGGESTIONS
&
CONCLUSION
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5.1 FINDINGS
In Equity Schemes Reliance quant plus Fund is better than the others because
unit value is low but the returns are more.
In debt scheme reliance regular savings fund is better than the rest of funds
because unit value is low but returns are more.
Mutual funds although regulated by the government but they are not insured
against loses.
Changing the government policies & taxes are impact the returns to the
investors in various schemes.
Management charge some fees on fund amount so if it reduces the returns are
available to investors.
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5.2 SUGGESTIONS
When government regulates the insurance against the losses it will be benefit
to the investors.
Willing to create a mutual fund for development of rural sectors .
If the government gives some protection policies to investors it will encourage
them to invest their money in mutual funds.
If the management reduces the additional fee charges on funds it’s benefit to
the investors to get the reasonable returns.
The fund manager should take necessary steps to control the risk.
The fund manager should be actively participated at the investment situations
can get growth returns.
RMF should take the essential steps to increasing the performance and growth.
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5.3 CONCLUSION
There are various opportunities to invest our money but mutual funds are
better because every one think that “low risk – high returns” but in the mutual funds
we get the optimum returns with low risk.
Reliance mutual funds schemes are giving the good returns to its unit
holders. That’s why reliance mutual fund is occupying today the largest Indian
AMC’S.
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BIBLOGRAPHY
BOOKS:
1. I.M.pandey “Financial Management”, Edition 12th, Vikas publishers.
2. L.M.bhole, “Financial institutions markets”, Edition 16th, TATA MC
Grawhill publishers.
WEB SITES:
WWW.MUTUAL FUNDS.COM
WWW.AMFI.COM
WWW.RELIANCE MONEY.COM
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