Professional Documents
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Project On Reliance Mutual Fund
Project On Reliance Mutual Fund
The Reliance group – one of India’s largest business houses with revenues of Rs. 990 billion ($22.6
billion) that is equal to 3.5 percent of the country’s gross domestic product was split into two.
The group – which claims to contribute nearly 10 per cent of the country’s indirect tax revenues and
over six percent of India’s exports – was divided between Mukesh Ambani and his younger brother Anil
on June 18, 2005.
The group’s activities span exploration, production, refining and marketing of oil and natural gas,
petrochemicals, textiles, financial services, insurance, power and telecom. The family also has interests
in advertising agency and life sciences.
Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with Average Assets Under
Management (AAUM) of Rs. 90,938 Crores (AAUM for Mar 08 ) and an investor base of over
66.87Lakhs.
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 115 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. Reliance Mutual fundhas largest
AUM in India. Reliance capital asset Management is no. 1 AMC in India but the picture is not the same
in Chhattisgarh. In Chhattisgarh they are no. 2 AMC. Management of Reliancemutual fund wants to
expand its feet in Chhattisgarh, before taking any step they want to understand market & investor and
distributor behavior of SMEs, so they may plan accordingly to capture Chhattisgarh Market. In this
research we have to analyze why, how, where, when & how much an investor invest & according to it, we
have to make profile of investors. In this report I have endeavored to understand the factors affecting
Investment behavior of an investor in Chhattisgarh. This behavioral study consists of how any investor
invests in CG. What factor they consider, why these factors they consider, where do they invest, how do
they invest, purpose behind investment, size of investment, timing of investment & duration of
investment. This study gave us basis to profile investors.
ASSETS UNDER MANAGEMENT
AUM for the Month Mar 2008
Average AUM Excluding Fund of Funds 9093794.02 Crs.
Average AUM Fund of Funds 0
COMPANY PROFILE
VISION STATEMENT
“To be a globally respected wealth creator, with an emphasis on customer care and a culture of
good corporate governanceâ€.
MISION STATEMENT
“To create and nurture a world-class, high performance environment aimed at delighting
their customersâ€.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE POLICY
Reliance Capital Asset Management Ltd. has a vision of being a leading player in the Mutual
Fundbusiness and has achieved significant success and visibility in the market. However, an imperative
part of growth and visibility is adherence to Good Conduct in the marketplace. AtReliance Capital Asset
Management Ltd., the implementation and observance of ethical processes and policies has helped us in
standing up to the scrutiny of our domestic and international investors.
MANAGEMENT
The management at Reliance Capital Asset Management Ltd. is committed to good Corporate
Governance, which includes transparency and timely dissemination of information to its investors and
unit holders. The Board of Directors of RCAM is a professional body, including well-experienced and
knowledgeable Independent Members. Regular Audit Committee meetings are conducted to review the
operations and performance of the company.
EMPLOYEES
Reliance Capital Asset Management Ltd. has at present, a code of conduct for all its officers. It has a
clearly defined prohibition on insider trading policy and regulations. The management believes in the
principles of propriety and utmost care is taken while handling public money, making proper and
adequate disclosures.
All personnel at Reliance Capital Asset Management Ltd are made aware of their rights, obligations and
duties as part of the Dealing Policy laid down in terms of SEBI guidelines. They are taken through a
well-designed HR program, conducted to impart work ethics, the Code of Conduct, information security,
Internet and e-mail usage and a host of other issues.
One of the core objectives of Reliance Capital Asset Management Ltd. is to identify issues considered
sensitive by global corporate standards, and implement policies/guidelines in conformity with the best
practices as an ongoing process. Reliance Capital Asset Management Ltd. gives top priority to
compliance in true letter and spirit, fully understanding its fiduciary responsibilities.
SPONSORS
‘‘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.”, the sponsor. Reliance Mutual
Fund (RMF) has been sponsored by Reliance Capital Ltd (RCL). The promoter of RCL is AAA
Enterprises Private Limited. Reliance Capital Limited is a Non Banking Finance
Company. Reliance Capital Limited is one of the India’s leading and fastest growing financial
services companies, and ranks among the top three private sector financial services and banking
companies, in terms of net worth.
Reliance Capital has interests in asset management and mutual funds, life and non-life insurance,
private equity and proprietary investments, stock broking and other activities in the financial services
sector. The net worth of RCL is Rs. 5,161.23 crores as on March 31, 2007.
The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond
the contribution of an amount of Rupees one Lac made by them towards the initial corpus for setting up
the Fund and such other accretions and additions to the corpus.
THE AMC
RELIANCE CAPITAL ASSET MANAGEMENT COMPANY
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 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 Asset Management Limited (RCAM) was approved as the Asset Management Company
for the Mutual Fund by SEBI by 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.113.59 crores.
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.
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 realize the effects without any limitation.
SOCIAL RESPONSIBILITIES
“Organizations, like individuals, depend for their survival, sustenance and growth on the support
and goodwill of the communities of which they are an integral part, and must pay back this generosity in
every way they can.â€This ethical standpoint, derived from the vision of the founder, li es at the heart
of the CSR philosophy of the Reliance Group.
While they strongly believe that their primary obligation or duty as corporate entities is to their
shareholders – they are just as mindful of the fact that this imperative does not exist in isolation; it is
part of a much larger compact which they have with their entire body of stakeholders: From employees,
customers and vendors to business partners, eco-system, local communities, and society at large.
They evaluate and assess each critical business decision or choice from the point of view of diverse
stakeholder interest, driven by the need to minimize risk and to pro-actively address long-term social,
economic and environmental costs and concerns. For them, being socially responsible is not an
occasional act of charity or that one-time token financial contribution to the local school, hospital or
environmental NGO. It is an ongoing year-round commitment, which is integrated into the very core of
their business objectives and strategy.
Because they believe that there is no contradiction between doing well and doing right.
Indeed, “doing right is a necessary condition for doing wellâ€.
THE MANAGEMENT TEAM
Board of Directors
Mr. Amitabh Chaturvedi
Mr. Kanu Doshi
Mr. Manu Chadha
Mr. Sushil Tripathi
Management Team
CEO
Mr. Vikrant Gugnani
Deputy CEO
Mr. Sundeep Sikka
Head Equity Investments
Mr. Madhusudan Kela
Head Fixed Income
Mr. Amitabh Mohanty
Equity Fund Managers
Mr. Sunil B. Singhania Mr. Ashwani Kumar
Mr. Shailesh Raj Bhan Mr. Shiv Chanani
Mr. Omprakash S. Kuckian
Debt Fund Managers
Mr. Amit Tripathi Ms. Anju Chhajer
Mr. Arpit Malaviya
Commodities
Head of Commodities Mr Vikram Dhawan
Head Of Departments
Marketing Communication Mr Rajat Johri
Finance and Accounts Mr. Sanjay Wadhwa
Human Resource Development Mr. Rajesh Derhgawen
Information Technology Mr. Vinay Nigudkar
Legal & Compliance Mr. Balkrishna Kini
Operations & Settlement Ms. Geeta Chandran
R&T Operations & Investor Relations Mr. Milind Nesarikar
Risk Management Mr. Lav Chaturvedi
Sales & Distribution Mr Himanshu Vyapak
Zonal Heads
Northern Zone Head Mr. Aashwin Dugal
Western Zone Head Mr. Sanjiv Gudal
Southern Zone Head Mr. Gurbir Chopra
Eastern Zone Head Mr. Gopal Khaitan
CUSTOMER MOTIVATION PLAN
a)Â Â Â Â Â OBJECTIVES
Area wise Identifying Potential Prospective distributors, which leads to increase the
business.
b)Â Â Â The Prospects
The Starting point is every one who might conceivably buy the product that is calledsuspects and
from these the company determines the most likely prospects which it hopes to convert into first time
customers then repeat customers and then clients.
Following figure shows the main steps of attracting and keeping customers.