A Study On Mutual Funds at Reliance Mutual Funds

A STUDY ON MUTUAL FUNDS AT
RELIANCE MUTUAL FUNDS

ABSTRACT
A mutual fund is a type of professionally managed collective investment vehicle that

pools money from many investors to purchase securities. As the mutual fund sector has
developed, there's been a growing acceptance by most policy holders that the assured return era
is a thing of the past. The mutual fund companies are focusing on the Market Linked Plans. This
study would help in explaining the investor’s perception of risk & return & their preference for
different schemes of mutual fund.
The Primary objective of the study is to assess the investor’s perception towards the
RELIANCE Mutual funds. The secondary objectives include identifying the advantages of
RELIANCE Mutual funds over other forms of investments and compare RELIANCE Mutual
funds with other types of investments and mutual funds of other companies. This study also aims
to understanding the investor’s perception of risk & return & their preference for different
schemes of mutual fund.
This study constitute a sample of 250 different kinds of investors they diversification of
investment plans, opinion of the investors has been collected through structured questionnaire
and study confined to the area of different areas in Chennai. Most of the investors have very
good knowledge about RELIANCE Mutual funds investment and other investment plan. Based
on the findings and analysis it can be concluded that the investors are satisfied with the returns
and performance of RELIANCE Mutual funds superiority and over other investments plan of
other mutual fund companies.
CHAPTER - I
INTRODUCTION
Mutual fund:-
A Mutual Fund is a pool of money collected from investors & is invested according to
certain investment objectives. A Mutual Fund is created when investors put their money
together. It is therefore a pool of the investor’s funds. The most important characteristic of a
Mutual Fund is that the contributors & the beneficiaries of the fund are the same class of people,
namely the investors. The term Mutual means that investor’s contributed to the pool & also
benefit from the pool. There are no other claimants to the funds. The pool of funds held mutually
by investors is the Mutual Fund.
A Mutual Fund’s business is to invest the funds thus collected, according to the wishes of
the investor’s who create the pool. In many markets the wishes are articulated as “Investment
Mandates” Usually, the investor’s appoint professional investment managers, to manage their
funds. The main objective is achieved when professional investment managers create a
“Product” & offer it for investment to the investor. This product represents a share in the pool, &
pre-states investment objectives.
For example: A Mutual Fund, which sells a “money market mutual fund”, is actually seeking
investor’s willing to invest in a pool that would invest pre-dominantly in money market
instruments.
Characteristics of a Mutual Fund:
1. A Mutual Fund actually belongs to the investors who have pooled their funds. The ownership
of the Mutual Fund is in the hands of the investors.
2. A Mutual Fund is managed by investment professionals & other service providers, who earn
a fee to their services from the fund.
3. The pool of funds is invested in a portfolio of marketable investments. The value of the
portfolio is updated every day.
4. The investor’s share in the fund is denominated by “Units”. The value of the units changes
with change in the portfolio’s value, every day. The value of the unit of the investment is
called as Net Asset Value or NAV.
5. The investment portfolio of the Mutual Fund is created according to the stated investment
objectives of the fund.
Emergence of Mutual Fund:
Mutual Funds now represent perhaps the most appropriate investment opportunity for
most investors; as financial markets became more sophisticated and complex, investors need a
financial intermediary who provides the required knowledge and professional expertise on
successful investing.
It is no wonder then that in the birth place of Mutual Funds – U.S.A. – the fund industry
has already overtaken the banking industry, more funds being under Mutual Fund management
than deposited with banks.
The Indian Mutual Fund industry has already started opening up many of the existing
investment opportunities to Indian Investors. We have started witnessing the phenomenon of
more saving now being entrusted to the funds than to the banks.
Despite the expected continuing growth in the industry, Mutual Funds are still a new
financial intermediary in India.
Hence, it is important that the investors, the Mutual Fund agents / distributors, the
investment advisors and even the fund employees acquire better knowledge of what Mutual
Funds are, what they can do for investors and what they cannot, and how they function
differently from other intermediary such as the banks.
The Association of Mutual Fund in India has commissioned this workbook as the basic
compilation of the minimum knowledge required by both the fund distributors and the
employees. The Workbook will also serve as a guide to the AMFI Testing Programme for
distributors and employees.
STATEMENT OF THE PROBLEM:
 There is very low awareness among people about the RELIANCE Mutual funds. This
prevents them from obtaining a fair return for their investment.
 A very few educated people who do not want to invest in mutual fund just because they
are completely unaware of functioning of a mutual fund & they perceive a very high
degree of risk.
 There are over 500 different types of products offered by different mutual funds both
private & public. These discount products will have different portfolios according to the
investment period involved.
 For e.g.: short-term, medium-term etc. these products meet the expectations of investors.
But awareness among investors about the RELIANCE Mutual funds is limited in this
regard.
4. 2 NEED FOR THE STUDY
A mutual fund is a type of professionally managed collective investment vehicle that

pools money from many investors to purchase securities. As the mutual fund sector has
developed, there's been a growing acceptance by most policy holders that the assured return
era is a thing of the past. The mutual fund companies are focusing on the Market Linked
Plans.
This study would help in explaining the investor’s perception of risk & return &
their preference for different schemes of mutual fund. All this would help in giving
suggestions to strengthen the marketing efforts of insurance companies’ and expand their
business.
4.3 OBJECTIVES:
PRIMARY OBJECTIVES:
The Primary objective of the study is to assess the investor’s perception towards the mutual
funds of RELIANCE
SECONDARY OBJECTIVES:
 To understand how a mutual fund works.

 To identify the advantages of RELIANCE mutual funds over other forms of investments.
 To compare the RELIANCE mutual funds with other types of investments.
 To know investors perception of risk & return & their preference for different schemes of
mutual fund.
4.4 SCOPE OF THE STUDY
 The scope of the study is to analyze and interpret the investor’s perception towards
the RELIANCE Mutual Funds and over other investments.
 The research records around a general awareness on then mutual fund and other
investment level and precaution towards RELIANCE Mutual Funds.
 Analyze and interpret the factors affecting the choice of Mutual Fund and investors
preference on the RELIANCE Mutual Fund and over other investment Schemes.
4.5. RESEARCH DESIGN
The research design indicates the types of research methodology undertaken to collect the
information for the study. The research design selected for this study for this project is both
descriptive research design and hypothesis testing research design.
The purpose of descriptive research is to get the characteristic of an individual toward an

objectives or the variable of interest in a situation. A descriptive research design is the one that
simply describes something such as demographic characteristic of group (or) customers of the
product.
Descriptive research study provides clear specification of who, what, when, why, where and how
aspects of the research. It involves more specific hypothesis and testing of them through
statistical inference techniques. However the descriptive does not find the cause and effect
relationship among variables.
SAMPLING DESIGN
The selected samples based on the stratified random sampling.
A sample design is a definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the research would adopt in selecting items for the sample.
Sample design may as well lay down the number of items to be included in the sample that is the
size of the sample. Sample design is determined before data are collected.
Stratified Random sampling:
Under stratified random sampling the population is divided in to several. Sub-population

that are individually more homogeneous than the population, (the different sub – population are
called strata) and then we select items from each stratum to constitute a sample.
Since each stratum is homogenous than the population, we are able to get more precise,
estimate for each stratum and by estimating more accurately each of the component part, we get
a better estimates of the whole. In brief stratified sampling results in more reliable and detailed
information.
HYPOTHESIS
Hypothesis may be defined as a proposition or a set forth as an explanation for the
occurrence of some specified group of phenomena either asserted merely as a provisional
conjecture to guide some investigation or accepted as highly probable in the light of established
facts .
HYPOTHESIS: I
Chi Square
NULL HYPOTHESIS:
Ho = There is no significant difference exists between the monthly income and investment in
RELIANCE Mutual funds.
ALTERNATIVE HYPOTHESIS:-
H 1= There is significant difference exists between the monthly income and investment in
HYPOTHESIS: II
Chi Square
NULL HYPOTHESIS:-
Ho =There is no significant difference exists between the place of living and awareness about
ALTERNATIVE HYPOTHESIS:
H1 = There is no significant difference exists between the place of living and awareness about
HYPOTHESIS: III
Correlation
NULL HYPOTHESIS:
Ho=There is no significant difference exists between the monthly income and awareness about
RELIANCE Mutual funds
ALTERNATIVE HYPOTHESIS:-
H1 =There is significant difference exists between the monthly income and awareness about
HYPOTHESIS: IV
Regression
NULL HYPOTHESIS:
Ho =There is no significant difference exists between the Occupation and the
Preference for a specific scheme.
H1 = There is significant difference exists between the Occupation and the
Preference for a specific scheme.
HYPOTHESIS: V
NULL HYPOTHESIS:
Ho =There is no significant difference exists between the age and the mutual fund schemes
H1 = There is no significant difference exists between the age and the mutual fund schemes
DATA COLLECTION METHOD
PRIMARY DATA:
For this study, this questionnaire type survey is used to collect the primary data because
of its extreme flexibility. This primary data pertain demographic and socio-economic
characteristics of the investors, attitudes and opinion of investors, their awareness and
knowledge.
SECONDARY DATA:
Secondary data has been collected from magazines and journals like “TAKE STOCK”,
from the books of “AMFI” and “HDFC”, and “SEBI INVESTORS GUIDE”
Secondary data need for conducting this research work was collected both internally and
externally. The required internal data was collected from company brochures, etc…, and the
external source was magazines, other business forms, websites, investors, bank, mutual fund
industry, post office, statistical and management books and so on. The research did here is desk
research, that is collection and analysis were made in secondary data.
I. POPULATION
The universe or population is the specified group of people, firms, conditions, activities,
etc.., which form the pivotal point of the research project. For developing and using a sample, it
becomes a primary duty to define the population from which draw the sample.
II.SAMPLING FRAME
A sampling frame may be defined as the listing of the general components of the
individual units that comprise the defined population.
III.SAMPLING METHOD AND SAMPLE SIZE
Non-probability sampling method was used for this research study in non-probability
sampling, the method adopted is convenience-sampling method. The investigator has selected
the sample according to this convenience. He has included those items in the sample, which he
thought were most typical of population.
NON-PROBABILITY SAMPLING
Non –probability sampling method is one, which does not provide every item in the
universe with a known chance of being include in the sample. The selection process is partially
subjective.
CONVENIENCE SMAPLING
A convenience sample is obtained by selecting ’’convenient’’ population units.

Convenience samples are prove to bias by their very nature selecting population elements which
are convenient to choose almost always make them special or different from the best of the
elements in the population in same way.
IV. SAMPLE SIZE DETERMINANTS

The sample size is usually determined by the sampling method selected and nature of the
research. Hence considering this, the sample size is determined. The sampling here is non-
probability and convenience sapling for that more number of sample sizes is preferred.
v. SAMPLE SIZE:
The method of sampling used here was Convenience sampling. The survey was
conducted in Chennai with sample size of 250 customers of State of India.
Secondary data
Secondary data has been collected from magazines and journals like “TAKE STOCK”, from the
books of “AMFI” and “HDFC”, and “SEBI INVESTORS GUIDE”.
The task here depends on whether probability or non-probability sampling. As it was taken as
non-probability sampling, large number of sampling is preferred to precise the sampling error
estimate. The sample size here includes existing and potential investors, which is 250.
QUESTIONNAIRE DESIGN
The researcher used a questionnaire method to collect the data from the mutual fund
investors and other investors for the research work.
The questionnaire framed for the research study is a structured questionnaire in which all
the questions are predetermined before conducting the survey. The form of questionnaire is of
both closed and open type
A pilot survey was administrated to revise and complement survey questions before
preparing the final questionnaire. All the variable were to be
Part I to be demographic details on age, sex, occupation, income, education.
Part II Six point scale of one to Two, with 1 representing HDFC income fund and 6
representing Templeton India Income Builder.
Part III Five point scale of one to five, with 1 representing Mutual fund and 5 representing Co-
operative society.
Part IV Four point scale of one to four, with 1 representing Equity and 4 representing balanced
fund.
Part V Three point scale of one to three, 1 representing Recurring Deposits and 3 representing
Chit fund.
QUESTIONNAIRE
A questionnaire is simply a formalized set of questions for eliciting information.
TYPES OF QUESTIONS
The different types of questions used for the study are:
Open- ended questions.
Closed- ended questions.
Multiple choice questions.
TOOLS FOR ANALYSIS
PERCENTAGE ANALYSIS
FORMULA:
Percentage= (number of responses/total number of respondents)*100.
CHI SQUARE TEST:
(O-E)2/E
O=Observed frequency
E=Expected frequency.
Chi-square is used to test whether difference between observed and expected frequency
are frequent.
CORRELATION:
Its studies the joint variation of two or more variables for determining the amount of
correlation between two or more variables
REGRESSION:
Regression is the determination of a statistical relationship between two or more

variables. In simple regression, we have only two variables, one variable (defined as
independent) is the cause of the behavior of another one (defined as dependent variable). The
basic relationship between X and Y.
ANOVA:
Analysis of Variance (abbreviated as ANOVA) It is the essentially a procedure for

testing the deference among different groups of data for homogeneity. The essence of ANOVA
is that the total amount of variation in a set of data is broken down into two types, that amount
which can be attributed to chance and that amount which can be attributed to specified causes.
ANOVA consists in splitting the variance for analytical purposes.
4.6 LIMITATIONS OF THE STUDY
 Only 250 customers of RELIANCE from Chennai were selected for the study because
only the investors in mutual fund with sufficient knowledge about various forms of
investment will be able to make a comparison between them.
 Lack of time because of which some of the information could not be collected.
 Unwillingness & Bias from the part of respondents limits the coverage of the Study.
4.7 EXPECTED CONTRIBUTION OF THE STUDY
The project was a great learning experience. Each moment spent during the project brought
new experiences and practical learning which is not confined within the text book but gave
exposure to the real world constraints in applying all that we have read in books. Following are
some learning attained during the project.
 The training very usefully to understand about the mutual fund investment functioning,
mutual fund superiority and over other investment position.
 The study gave ample opportunity to learn about preparation of mutual fund investors
and other investor’s analysis and collect they are primary repots and overall investment
industrial report identified.
 The project usefully to understand about the RELIANCE Mutual funds, bank deposit,
chit fund, bond, post office savings.
Thus the project was a great learning experience and will be so helpful for my future.
CHAPTER II
REVIEW OF LITERATURE
Using Mutual Fund:
A small man – anyone with a portfolio of, Say, under $100,000 – is unlikely to do as well
investing his own money as he can do in a [Mutual Fund]
- Paul Samuelson,
- MIT Economist
- Nobel Laureate.
A mutual fund is financial service organization that receives money from shareholder, invests it,
attempts to make it grow and agrees to pay the share holder cash on demand for the current value
of his investment”
AUTHOR:
BURTON G. MALKIEL
PUBLISHED BY THE INVESTMENT COMPANY OF THE U.S.
 A trust that pools the savings of investors who share a common financial goal is known
as a ‘mutual fund’.
 The money thus collected is then invested in financial market instruments such as shares
debentures and other securities like government paper, etc.
AUTHOR:
DONALD R. LICHTENSTEIN [PROFESSOR OF FINANCE]
UNIVERSITY OF COLORADO.
 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.
 Investments in securities are spread over wide cross-section of industries and sectors,
thus allowing risk reduction to take place. Diversification reduces the risk because all
stocks and/or debt instruments may not move in the same time.
AUTHOR:
MA.SANJAI BHAGAT
PROFESSOR OF FINAANCE
The investment of mutual fund it is essentially a mechanism of pooling together the savings of a
large number of investors for collective investment with the objective of attractive yields and
appreciation in their value.
Mutual funds are an important segment of the financial system. It is a non-depository financial
intermediary. Mutual funds are mobilizes of saving particularly of the small and household
sectors, for investment in the stock and money market.
Features, role, benefits of mutual funds superiority over other investments:
 Mutual funds mobilize funds by sell in their own shares, know as unit. To an investor, a
unit in mutual funds means ownership of proportional share of securities in the portfolio
of a mutual fund.
 This gives the benefit of convenience and the satisfaction of owning shares in many
industries.
 Thus, mutual funds are primarily investment intermediaries to acquire individual
investments and pass on the returns to small fund investors.
AUTHOR:
DR. S GURUSAMY
FINANCIAL SERCICES READER
DG VAISHNAV COLLEGE
BOOK:
FINANCIAL SERVICES
PAGE NO: 267 TO 283
 The mutual fund investment gives the benefit of convenience and the satisfaction of
owning shares in many investors and industries.
 A mutual fund is that it provides an ideal avenue for investment for persons of small
means, and enables them to earn a reasonable return with the advantages of relatively
better liquidity.
 It offers investors a proportionate claim on the portfolio of assets that fluctuate in value in
comparison to the value of the assets that comprise the portfolio.
 It is possible for the small investors to have the benefit of professional and expert
management of their funds. Mutual funds employ professional experts who manage the
investment portfolios efficiently and profitably.
Diversified investment: mutual funds have the advantage of diversified investment of funds in
various industry segments spread across the country. This is advantageous to small investors who
cannot afford having the shares of highly established corporate because of high market price.
Mutual funds have the distinct advantage of offering to its investors the benefit of better liquidity
of investment. There is always a ready market available for the mutual funds units.
There is only a minimum risk attached to the principal amount and return f or the investments
made in mutual fund schemes. This is usually made possible by expert supervision,
diversification and liquidity of units.
An attractive benefit of mutual funds is that the various schemes offered by them provide tax
shelter to the investor. This benefit is available under the provisions, all at will.
Website:
www.amfiindia.com www.msn.com www.mutualfund.com

CHAPTER III
INDUSTRY & COMPANY PROFILE
INDUSTRY PROFILE
HISTORY OF MUTUAL FUNDS IN INDIA:
The Mutual Fund industry started in 1963 with the formation of Unit Trust of India. At
the initiative of the Reserve Bank and the Government of India, the objective then was to attract
the small investors and introduce them to market investments. Since then, the history of Mutual
Funds in India can be broadly divided into three distinct phases.
Phase 1 – 1964 – 1987 [Unit Trust of India]
This phase spans from 1964 to 1987. In 1963, UTI was established by an Art of
Parliament and given a monopoly. Operationally, UTI was set up by the Reserve Bank India, but
was later de-linked from RBI. The first and still one of the largest schemes, launched by UTI was
Unit Scheme 1964. Over the years, US-64 attached, and probably still has, the largest number of
investors in any single investment scheme. It was also at least partially the first open-end scheme
in the country, now moving towards becoming fully open-end.
Later in 1970s and 80s, UTI started innovating and offering different schemes to suit the
needs of different classes of investors. Unit Linked Insurance Plan [ULIP] was launched in 1971.
Six new schemes were introduced between 1981 and 1984. During 1984 – 1987, new schemes
like children’s Gilt Growth Fund [1986] and Master share [1987] were launched. Master share
could be termed at the first diversified equity investment scheme in India. The first Indian
offshore fund, India Fund, was launched in August 1986. During 1990s, UTI catered to the
demand for income-oriented schemes by launching Monthly Income Schemes, a somewhat
unusual fund product offering “assured returns”.
The Mutual Fund industry in India not only started with UTI, but still counts UTI as its
largest player with the largest corpus of investible funds among all Mutual Funds currently
operating in India. Until 1980s, UTI operations in the stock market often determined the
direction of market movements. Now, many Indian investors have taken to direct investing on
the stock markets. Foreign and other institutional players have been brought in. so direct
influence of UTI on the markets may be less than before, through it remains the largest player in
the fund industry. In absolute terms, the investible funds corpus of even UTI was still relatively
small at about Rs.600 crores in 1984. But, at the end of this phase one, UTI has grown large as
evidenced by the following statistics:
1987 – 1988
Amount Mobilized Assets Under Management Mobilization as % of
[Rs. Crores] [Rs. Crores] Gross Domestic
Savings
UTI 2,175 6,700 3.1%
Total 2,175 6,700 3.1%
Phase 2 – 1987 – 1993 [Entry of Public Sector Funds]
1987 marketed the entry of non-UTI, Public Sector Mutual Funds, bringing in
competition. With the opening up of the economy, many public sector banks and financial
institutions were allowed to establish Mutual Funds. The State Bank of India established
the first non-UTI Mutual Fund –RELIANCE Mutual Fund – in November 1987. This was
followed by Canbank Mutual Fund [launched in December 1987], LIC Mutual Fund
[launched in 1989], GIC Mutual Fund and PNB Mutual Fund. These Mutual Funds helped
enlarge the investor community and the investible funds. From 1987 to 1992 – 1993, the
fund industry expanded nearly seven times in terms of Assets Under Management, as seen
in the following figures:
1992 – 1993
Savings
UTI 11,057 38,247 5.2%
Public 1,964 8,757 0.9%
sector
Total 13,021 47,004 6.1%
During this period, investors were shifting away from bank deposits to Mutual Funds, as
they started allocating larger part of their financial assets and savings [5.2% in 1992, 3.1% in
1988] to fund investments. UTI was still the largest segment of the industry, although with
nearly 20% market share ceded to the Public Sector Funds.
Phase 3 – 1993 – 1996 [Emergence of Private Funds]
A new era the Mutual Fund industry began with the permission granted for the entry of
private sector funds in 1993, giving the Indian investors a broader choice of ‘fund families’ and
increasing competition for the existing public sector funds. Quite significantly, foreign fund
management companies were also allowed to operate Mutual Funds, most of them coming into
India through their joint ventures with Indian promoters. These private funds have brought in
with them the latest product innovations, investment management techniques and investor
serving technology that makes the Indian Mutual Fund industry today a vibrant and growing
financial intermediary.
During the year 1993 – 1994, five private sector Mutual Funds launched their schemes
followed by six others in 1994 – 1995. Initially, the mobilization of funds by the private Mutual
Funds was slow. But this segment of the fund industry now has been witnessing much greater
investor confidence in them. One influencing factor has been the development of a SEBI driven
regulatory framework for Mutual Funds.
But another important factor has been the steadily improving performance of several funds
themselves. Investors in India now clearly see the benefits of investing through Mutual Funds
and have started becoming selective.
Phase 4 – 1996 [SEBI Regulation for Mutual Funds]
The entire Mutual Fund industry in India, despite initial hiccups, has since scaled new
heights in terms of mobilization of funds and number of players. Deregulation and liberalization
of the Indian economy has introduced competition and provided impetus to the growth of the
industry. Finally most investors – small or large – have started shifting towards Mutual Funds as
opposed to banks or direct market investments.
More investor friendly regulatory measures have been taken both by SEBI to promote the
investor and by the government to enhance investors’ returns through tax benefits. A
comprehensive set of regulations for all Mutual Funds operating in India has been accomplished
with SEBI [Mutual Fund] Regulations, 1996. These regulations set uniform standards for all
funds and will eventually be applied in full to Unit Trust of India as well, even through UTI is
governed by its own UTI Act. In fact, UTI has been voluntarily adopting SEBI guidelines for
most of its schemes. Similarly the 1999 Union Government Budget took a big step in exempting
all Mutual Fund dividends from income tax in the hands of investors. Both the 1996 regulation
and the 1999 Budget must be considered of historic importance, given their far – reaching impact
on the fund industry and investors.
The Mutual Fund industry 1999 seems to mark the beginning of a new phase in its
history, a phase of significant growth in terms of assets under management. Consider the growth
in assets as seen in the figures below:
1998 – 1999
Savings
UTI 11,679 53,320 2.79%
Public 1,732 8,292 0.08%
sector
Public 7,966* 6,860* 1.14%
sector
Total 21,377 68,472 5.1%
1998 – 1999
Amount Mobilized Assets Under Management
[Rs. Crores] [Rs. Crores]
UTI 8,312 64,276
Public 1,222 8,656
sector
Public 13,789* 14,017*
sector
Total 23,323 86,949
* Figures of Assets under management are after taking account of Redemptions. Amounts
Mobilized are Grass.
The size of the industry is growing rapidly, as seen by the figure of assets under
management, which have gone from over 68,000 crores to nearly 87,000 crores in just one year.
Within the growing industry, by March 1999, UTI’s share of mobilizations’ had decreased to
55% [from 85% in 1992 – 1993], while the share of the private sector stood at 37%. During April
to October 1999, the private sector accounted for 59% of mobilisations. Mobilisations during this
period of 7 months in fact exceeded the same for the whole of 1998 – 1999.
It is also clear that the enhanced share of the private sector is explained not only by the
growing appetite for Mutual Funds, but also by the growing acceptance of the private sector
funds.
The following chart portrays the growth of the Mutual Fund industry in
India across the development phases discussed above
Place of Mutual Funds in Financial Markets:
Indian household started allocating more of their savings to the capital markets in 1980s,
with investments flowing into equity and debt instruments. Besides the conventional mode of
bank deposits.
Until 1992, primary market investors were assured good returns as the price of new
equity issues was controlled. After introduction of free pricing of shares lost money and
withdrew from the markets altogether. Even those investors who continued as direct investors in
the stock markets realized that the key to successful investing in the capital markets lay in
building a diversified portfolio, potential from the capital market involved careful research and
monitoring of the market, which was not possible for all investors. Under similar circumstances
in other countries, Mutual Funds had emerged as professional intermediaries.
Besides providing the expertise in stock market investing, these funds allow investing in
small amounts and yet holding a diversifies portfolio to limit risk, while providing the potential
for income and growth associated with the debt and equity instruments. In India Unit Trust of
India occupied this place as the only capital markets intermediary from 1964 until 1988, when
the Government started other sponsors also set up Mutual Funds. With some ups and downs, this
new class of intermediary institutions is emerging, in India as elsewhere, as a good alternative to
direct investing in capital markets.
Mutual Funds serve as a link between the saving public and the capital markets in that
they mobilize savings from investors and borrowers in the capital markets. By the nature of their
activities, and by virtue of being knowledgeable and informed investors, they influence the stock
markets and play an active role in promoting good corporate governance, investor protection and
the health of capital markets.
Mutual Funds have imparted much needed liquidity into the financial system and
challenged the hitherto dominant role of banking and financial institutions in the capital markets.
Understanding of mutual fund
Using Mutual Fund:
A small man – anyone with a portfolio of, Say, under $100,000 – is unlikely to do as well
investing his own money as he can do in a [Mutual Fund]
- Paul Samuelson,
- MIT Economist
- Nobel Laureate.
Advantages of Mutual Fund:
1. Portfolio diversification:
By offering diversified portfolios Mutual Fund enable investors to hold diversified

portfolios. Through investors can create their own diversified portfolios. The cost of creating &
unconditioning such portfolios can be high apart from fact that investors may lack professional
expertise to manage such a portfolio.
2. Professional management:
Mutual Funds are managed by investment managers who are appointed by trustees &
bannered by the investment management agreement & the AMC’S are closely regulated by the
SEBI.
3. Reduction in risk:
Mutual Fund invests in a portfolio of securities. This means that all funds are not invested
in the same investment avenue. Therefore, holding a portfolio that is diversified across
investment avenues in a wise way to manage risk.
4. Reduction of transaction costs:
Mutual Funds provide the benefit of economics of scale by virtue of their size. Through
the individual investors contribution may be small; the Mutual Fund itself is large enough to be
able to reduce cost in its transactions.
5. Liquidity:
Most of the funds being sold today are open ended. That is investors can sell their
existing units or buy new units, at any point of time at prices that are related to the NAV of the
fund on the date of transaction.
6. Helps in financial planning:

Investors in the Mutual Fund industry today have a choice of 39 Mutual Funds, offering
nearly 500 products. They provide different categories of products. It is also possible for the
investors to choose the manner in which the returns would be distributed. The most important
benefit of product choice is that it enables investors to choose options that suit their return
requirements.
7. Enables regular periodic saving:
It enables regular periodic savings through systematic investment plan [SIP].
Why Buy Mutual Fund?
Reason 1 – Tax superior
 Dividend received is exempt

 Capital gains-long term
 With indexation – 20%
 Without indexation – 10%
Short-term – applicable tax bracket.
Reason 2 – deposit rates are reducing.
PLUS
 Very few companies accepting FD investments.

 Most of them going to debt market for fresh money - & this gives Mutual Funds an
opportunity to buy them for your customers.
 Mutual Funds – lock in period is low & liquidity is very high.
 And give higher returns generally.
 Minimum amount of investment is lower than FDs generally – thus everyone can sfford it.
Reason 3 –stock markets remain good… but long term only.
If your holding period was… The number of negative returns / loss

periods would be
6 days 51% of the time – losses.
5 years 24% of the time – losses.
10 years 5% of the time – losses.
15 years O% of the time – losses.
Daily rolling returns for relevant period from 2000 onwards [ short term , 365days] &
from 1980 [for long term]
Average return over 10 year period is > 15%
 Direct equity in short term is very volatile – thousands have suffered losses
 Not everyone can afford to spend time & money in monitoring – thus equity Mutual Funds
are a good option – one can invest REGULARLY & even with LOW INVESTMENTS.
 Equity Mutual Funds can select the right shares at the right time & can often buy at lower
prices.
Types of Mutual Fund:
I. Types available with respect to investment:
Depending on the investment portfolio that is created, the following are the types of
products offered by Mutual Fund:
1) Equity funds / Growth schemes.

2) Debt funds / Income schemes.
3) Balanced funds.
1) Equity funds / Growth schemes:

Equity funds are those that invest predominantly in equity shares of companies. Following
are the various types of equity funds:
a) Growth funds:
Growth funds invest in companies whose earnings are expected to rise at an above
average rate. The primary objective of growth funds is capital appreciation over 3 to 5 years
span.
b) Specialty funds:
These funds have a narrow portfolio orientation & invest in only companies that meet pre
defined criteria. For example: - at the height of the South African apartheid region many
funds in the U.S. offered plans that promised not to invest in South African companies.
c) Sectoral funds:
Sector funds portfolio consists of investment in only one industry or sector of the market
such as information technology etc.
d) Index funds:
An index fund tracks the performance of a specific stock market index. The objective is
to match the performance of the stock market by tracking an index that represents the overall
market. The fund invests in shares that constitute the index & in the same proportion as the
index.
e) Value funds:
Value funds try to seek out fundamentally sound companies whose shares are currently
under priced in the market. Value funds will add only those shares to their portfolios that are
selling at low price-earning ratios & are undervalued by other yardsticks.
f) Diversified equity funds:

A fund that seeks to invest only in equities, except for a very small portion in liquid
money market securities, but is not focused on any one or few sectors or shares may be
remedy as diversified equity fund.
g) Equity Linked Saving Schemes [ELSS]:
In India the investors have been given tax concessions to encourage them to invest in
equity market through these special schemes. Investment in these schemes entitles the
investors to claim an income tax rebate, but usually has a lock in period before the end of
which funds cannot be with drawn.
2) Debt funds / Income schemes:
Debt funds are those that predominantly invest in debt securities. Since most debt
securities pay periodic interest to investors. These funds are also known as income funds.
What is important in that portfolio is pre-dominantly made up of debt securities. Debt
securities companies of long term instruments such as bond issued by Central & State
Governments, public sector organizations, corporate debentures & money market instruments
like Treasury bills, Commercial papers, Certificate of deposit etc. following are the various
types of debt funds:
a) Liquid or money market funds:
These funds provide easy liquidity, preservation of capital & moderate income. These
schemes invest exclusively in safer short-term instruments such as Treasury bills, Commercial
papers, Certificate of deposit etc. return on these schemes fluctuate much less compound to other
schemes.
b) Gilt funds:
These funds invest exclusively in government securities. Government securities have no

default risk.
c) Diversifies debt funds:

A debt fund that invests in all available types of debt securities issued by entities across
all industries & sector is a diversified debt fund.
d) Focused debt fund:
Some debt funds have a narrow focus, with less diversification in its investments.
Example: includes sector, specialized & off share debt funds.
e) High yield debt funds:
A high yield debt fund seeks to obtain higher interest returns by investing in debt
instruments that are considered “Below investment grade”.
f) Assured return funds:
Assured return schemes are those schemes that assure a specific return to the unit holders
irrespective of performance of the scheme. A scheme cannot promise return unless such returns
are fully guaranteed by the sponsor or AMC.
3) Balanced fund:
The aim of balanced funds is to provide both growth & regular income as such schemes
invest both in equities & fixed income securities in the proportion indicated in their offer
document. These are appropriate for investors looking for moderate growth. They generally
invest 40 – 60% in equities & debt instrument.
Types according to maturity period:
1) Open-ended schemes:
An Open-ended fund or scheme is one that is available for subscription & repurchase of,
on a continuous basis. These schemes do not conveniently buy & sell units at Net Asset Value
[NAV] related prices, which are declared on a daily basis. The key features if an open-end
scheme is liquidity.
2) Close-ended scheme:
A Close-ended scheme or fund has a stipulated maturity period. Example: 5 to 7 years.

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 images & therefore they
can buy or sell the units of the schemes on the stock exchanges where the units 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 through listing on
stock exchanges. These Mutual Funds schemes disclose NAV generally on weekly basis.
Load funds & No load funds:
A load fund is one that charges a percentage of NAV for entry or exit. That is each time
one buys or sells units in the fund, a charge will be payable. This charge is used by the
Mutual Fund for marketing & distribution expenses. Suppose the NAV per unit is Rs.10, if
the entry as well as exit load is 1% then the investor who buy would be required to pay
Rs.10.10 & those who offer their units for repurchase to the Mutual Fund will get only
Rs.9.90 per unit.
A No Load fund is one that does not charge for entry or exit. It means that investor can enter
the scheme at NAV & no additional charges are payable on purchase or sale of units.
Options for structuring returns to investors:
Mutual Funds offer a variety of opinions to investors in which the returns from their
investments in structured. Investor has two options:
1) Dividend opinion:
Under this option the dividends will be declared by the Mutual Fund. Again this option is
divided into two. They are:
a) Dividend payout:
Under this option the investor will receive dividends from the Mutual Fund as &
when such dividends are declared or are directly credited to the investors bank A/C.
dividends may be declared weekly, monthly, quarterly, half yearly or annually.
b) Dividend re-investment:
Under this option the investor re-invest the dividends that are declared by Mutual
Fund back into the fund itself, at NAV that is prevalent at the time of re-investment. In
this option the number of units held by the investor will charge with every re-investment.
2) Growth option:
Investors who do not require periodic income distributions can choose the growth option.
Where the incomes earned are retained in the investment portfolio & allowed to grow, rather
than being distributed to the investors.
Net Asset Value [NAV]:
The performance of a particular scheme of a Mutual Fund is denoted by Net Asset Value
[NAV]. NAV of Mutual Fund is the value of one unit of investment in the fund, in the Net
Asset terms. It is computed by dividing the Net Asset of the fund by the number of units that
are outstanding in the books of the funds. NAV is calculated as follows: -
NAV = Total assets – Total liabilities
No. Of units outstanding
Total Assets = Market value of investment + Current assets
+ Accrued income.
Total Liabilities = Current Liabilities + Accrued expenses.
Role of SEBI:
As far as Mutual Funds are concerned SEBI formulated policies & interest of the
investor. SEBI notified regulations for the Mutual Funds in 1993. Thereafter Mutual Funds
sponsored by private sector entities were allowed to enter the capital market.
The regulations were revised in 1996 & have been amended thereafter from time to time.
SEBI has also issued guidelines to the Mutual Funds from time to time to protect the interest
of investors.
All Mutual Funds in India are required to be mandatory registered with the SEBI. The
structured & formation of Mutual Funds, appointment of key functionaries, investment
restrictions etc. are all defined under SEBI regulations. Mutual Funds have to send half-
yearly compliance reports to SEBI & also provide all other information about their
operations as SEBI may require.
Advantages of Income Funds over Bank Fixed Deposits:
1. Portfolio diversification:
By offering ready-made diversified portfolios Mutual Funds enable investors to hold
diversified portfolios. But Bank Deposits does not enjoy this advantage of Income Fund &
other schemes of Mutual Fund.
2. Liquidity:
Since the Income funds are open-ended that investors sell their existing units or buy new
units at any point of time. This enables investors to enjoy a high level of liquidity on their
investments on the other hand in Bank FD’s the money invested will be locked up for the
period of deposits hence does not enjoy liquidity.
3. Higher Returns:
An income fund gives much better return when compared to Bank Fixed Deposits.
Mutual Funds provide professional management of funds where the funds are managed
by investment managers appointed by trustees & the AMC’s are closely regulated by SEBI.
Comparison:
Return:
Where we compare income funds table & Bank Deposits rates table, it is implicated that
the returns available from income funds are much higher when compared to Bank Deposits.
Income Funds give better returns than the Bank deposits for an investor.
Risk:
Bank Deposits are safer when compared to Income funds. But in Income Funds the
investment will be made in debt instruments like money market instruments, government
bonds & securities etc, which are safe. That is why Income funds are considered as safe may
be not much as Bank Deposits.
Liquidity:
Income Funds, Liquid Funds enjoy liquidity. The investors can redeem their investment
when they want to do so. But Bank Fixed Deposits does not enjoy liquidity features. The
amount invested will be locked for the period of deposit.
LIQUID FUNDS:
Making the banks run for their money:
Liquid funds in India, and across the world, form a major chunk of total assets under
management in the Mutual Funds industry. In India itself, 22% of assets go into liquid funds.
How it started?
The first money market fund – the Reserve Fund – was established in the US in the early
1970’s. Its masterstroke was to take the privileges that institutions enjoyed, & make them
available to average investors.
Bruce Bent, who was the genius behind the fund, summarized it this way: ‘I wanted
to put money where people could forget about it – dollar back, plus a competitive rate of
return. We broke the stranglehold by banks for savers, and it leveled the playing field.’
His idea was to package high-yielding money market debt instruments and commercial
paper, into a Mutual Fund. Investors could safely take advantage of high yields, while paying
only a small fee to the manager of the fund. The concept was an overnight sensation. Today,
there are around 1,500 such funds in the US, and a further 1,300 in Europe.
However, the success didn’t come without growing pains. Following some high-profile
fund failure in the early years, the US Securities and Exchange Commission decided to
closely regulate their workings. One of its main stipulations for these funds was the high
quality of the underlying securities. This was to minimize the potential for any losses.
Today, in Europe, money market funds tend to be more aggressive, focusing more on
better performance, whereas US-style money funds focus on preserving capital. Dubbed
‘money market plus’ funds, these souped-up versions invest beyond the most conservative
range of short-term securities.
FMP’S competing with bank deposit
Next target of Mutual Fund!
After giving s stiff competition to the banks for cash management needs of corporate and
large investors through liquid funds, mutual funds are now eyeing the deposit base of the
banks through Fixed Maturity Plans – debt funds that invest your money for a fixed period
and earn [almost] fixed returns. The FMPs as they are popularly known as, are an excellent
substitute of short-term bank deposits where the investor is certain about his investment
horizon and wants to take minimum risk.
FMPs are Mutual Fund schemes where the fund manager invests your money for the
tenure of your choice in fixed income securities. For example, if you wish to invest
Rs.1,00,000 for three months, then you select a quarterly fixed maturity plan and invest at par
when the scheme opens for investments. The scheme matures after 3 months and you get
your money back based on the prevailing NAV.
Fixed returns through fixed Maturity:
FMPs are typically close-ended schemes [or exit is restricted by charging high exit
loads]. This allows the fund manager to buy debt securities that have a maturity equal to the
tenure of the scheme and then these securities are held on till the scheme matures.
Since trading in the portfolio is minimal and securities are held till maturity, the
portfolio is free from interest rate risk and thus its ability to assure ‘indicative returns’.
The Mutual Funds do not assure ‘fixed’ returns as it may not always be possible to
buy securities whose maturity exactly matches the tenure of the scheme and hence there may
be a small reinvestment risk as some of the debt papers in the portfolio mature before the
scheme matures.
SESTEMATIC INVESTMENT PLAN (SIP) VERSUS CHIT FUND
Systematic investment plan (SIP):
Whether investors are ready to take their first step towards their long-term investment
goals or have already started their journey, investors may be concerned about the possibility
of market volatility or high prices. There are ways the investor can benefit from the market
and still not suffer stocks.
What is known in the US as Dollar cost averaging is a systematic approach to long term
investing. Basically, under SIP option an investor commits making a regular [monthly,
quarterly] investment in a particular Mutual Fund and there by accumulate more units when
the market prices are low and lower number of units when prices are high in effect.
This has the effect of keeping an investors average cost of units lower than if investor
were to go into the market with the lump sum investment on any given day or if the investor
were to buy similar amount of units in the market irrespective of price. Repeated studies have
shown that the best way to benefit from markets is to invest long term and invest
systematically.
SIP is an application of the principals of Dollar cost averaging in the Indian context.
What is systematic investment plan [SIP]
An investment strategy based on the concept of rupees-cost averaging, which

automatically ensure that the average purchase price of securities over a series of periodic
transactions is always lower than the security’s highest prices at any point of time. SIP’s
which are based on the concept of rupee cost averaging which is a very common investment
strategy in the stock market. Under this, an investor purchases units worth a fixed amount
regularly, in effect buying fewer units when the NAV is high and more when the NAV is
low. A SIP automatically disciplines investors to invest regardless of market movements.
Systematic investments are an easy way to accumulate assets and take advantage of
Rupee cost averaging [buying more shares when prices are low] by allocating pre-determined
periodic investment into Mutual Funds.
SIP is an investment option that is presently available only with Mutual Funds. The other
investment option comparable to SIP’s is the recurring deposit schemes for Post office and
banks. Basically, under an SIP option an investor commits making a regular [monthly]
investment in a particular Mutual Fund / deposit.
Systematic investments do not assure a profit and do not protect against a loss in
declining markets. Since systematic investing involves continuous involvement in the market
regardless of functioning price levels of securities, you should consider your financial ability
to continue your purchases through periods of low price levels.
How to invest in Sips?
 The SIP option is available with all types of funds like equity, income or gilt.
 An investor can avail the SIP option by giving post-dated cheques of Rs.500 or Rs.1000
according to the funds’ policy.
 If an investor wants to put more than Rs.500 or Rs.1000 in any given month he will have to
fill in a new form for SIP intimating the fund that he is changing his SIP structure. Also he
will be allowed to change the SIP structure only in the multiples of the SIP amount.
 If an investor is investing in two different schemes of the same fund he can fill in a common
SIP form for all the schemes. However if the first holders in those schemes are different than
they will have to fill different SIP forms, as the first holder has to sign on the form.
 The investor can get out of the fund i.e. redeem his units any time irrespective of whether he
completed his minimum investment in that scheme. In such a case his post-dated cheques
will be returned back to him.
Benefits of SIP buil wealth over the long term:
The key to building wealth is to start investing early and regularly. These regular
amounts of savings, however small they may be, can possibly grow into a substantial amount
of wealth over the long term. Most of us tend to procrastinate investment decisions for there
is always some expense, which is a top priority. Therefore, if you have to save regularly. It
makes sense to pay yourself first and that is the only way to increase your savings.
SIP makes sense to an investor if and only it the investor considers the following:
1. Investor is unsure about which to invest.

2. Investor doesn’t want to commit too much at a time.
3. A disciplined approach to long term investing appeals to investor.
4. Investor wants to use potential market volatility to his advent
Chit fund:
Chit fund is an investment where person invests his money on monthly basis. The
gain or the dividend, which an investor gets after certain period of time, depends entirely on
the bid amount.
The following are the 8 different schemes from SRI RAM CHITS [K] LTD having
different chit values & investment period. These are the data related to the schemes from
1999 – April 2003.
SIP:
The following table shows the returns available from investment in systematic investment
plan. The table gives the Absolute return from SIP of different income funds if at all the
investor had invested through a SIP instead of putting the money in a chit fund.
Advantages of SIP over chit fund:
1. Safety:
Mutual Fund schemes are much safer when compared to chit fund. This is because Mutual
Funds are regulated by SEBI. On the other hand chit fund involves higher risk. They are not
regulated hence there is no surety for the investor’s money.
2. Better returns:
SIP’s gives a better return than a chit fund. In a chit fund the dividend or the return entirely
depends on the Bid amount apart from this the amount collected from the investors
anywhere. It is a kind of rotating the money among the investors.
3. Diversified portfolio: -
A Mutual Fund scheme gives different portfolios to the investor. But a chit fund does not
involve any such term.
SIP versus Bank Recurring Deposits:
Both SIP & Bank Recurring Deposits are similar in nature. Both involve monthly or
periodic investment. The people who want to invest their monthly savings usually go for
Bank Recurring Deposits but Mutual Fund schemes gives a similar kind of investment option
that is Systematic investment plan. Following gives the comparison between the to:
Advantages of SIP over recurring deposits:

1. Diversified portfolio:
Mutual Fund schemes invest in different securities or instruments & there by enable the
investor to get the advantages of diversified returns.
2. Higher Returns:
Systematic investment plan gives a better return when compared to the Bank Recurring
Deposits.
Investment managers manage Mutual Funds & therefore they bring in significant
professional expertise & are bound by regulatory & trustee supervision.
RBI bonds:
There are two types of RBI bonds. They are:
1. 8% savings bonds [taxable]:
These bonds will bear interest at the rate of 8% p.a. interest ion non-cumulative bonds will be
payable at half yearly intervals & interest on the cumulative bonds will be compounded with
half yearly rests & will the principal as the subscriber may choose. Interest, as these bonds
will be taxable under the income tax act 1961 as applicable. According to the relevant tax
status of the bondholder. These bonds are exempt from wealth tax. The tenure of the bond is
6 years.
2. 6.50% savings bonds [non-taxable]:

The tenure of these bonds is 5 years. The Interest on bonds will be exempt from income tax
under the income tax act of 1961.
Post office savings:
Post office savings involve following forms of investment: -
1. National saving certificate [NSC]:
The tenure of these certificates is 6 years. This certificate bears interest at the rate of 8%.
2. Kisan vikas patra:
Under savings the principal amount doubles in 8 years 7 months.
3. Public provident fund:
This bears an interest rate of 8%.
4. Recurring deposit [RD]:
The tenure is 5 years & it bears an interest rate of 8%.
5. Time deposit:
Years Interest rate.
1 year 6.25%
2 years 6.50%
5 years 7%
6. Monthly income schemes:
This bears an interest rate of 8% & after maturity a bonus of 10% is given to the investor.
Advantages of Mutual funds over RBI bonds & post office savings:
1. Liquidity:
Even though the RBI bonds & post office certificates are very safe for the investor, they do
not have liquidity. The principal amounts & the interest are paid only after the tenure of the
bond or certificate on the other hand Mutual Funds provides liquidity features to the investor
where he can redeem his units at any point of time.
2. Diversified port folio:
Mutual Funds provide ready-made portfolio to the investor which involves different shares,
money market instruments, government bonds, debentures etc.
Co-operative society deposits:
There are various co-operative societies & banks, which accepts deposits from the
customers.
Apart from income funds, there are equity-oriented schemes & balanced funds
provided by the mutual funds. Investor can earn a good returns if the chooses the right fund
at a right time. He can earn a good return if he knows when to invest & when to come out of
it.
2.2 COMPANY PROFILE
Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani Group, and is
ranked among the 25 most valuable private companies in India.
Reliance Capital 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 groups, in
terms of net worth.
Reliance Capital has interests in asset management and mutual funds, life and general
insurance, private equity and proprietary investments, stock broking, depository services,
distribution of financial products, consumer finance and other activities in financial services.
The Reliance Anil Dhirubhai Ambani Group is one of India's top 2 business houses, and
has a market capitalization of over Rs.2,90,000 crore (US$ 75 billion), net worth in excess of
Rs.55,000 crore (US$ 14 billion), cash flows of Rs. 11,000 crore (US$ 2.8 billion) and net
profit of Rs. 7,700 crore (US$ 1.9 billion).
Reliance Capital Ltd. is a Non-Banking Financial Company (NBFC) registered with the
Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. RCL was
incorporated as a public limited company in 1986 and is now listed on the Bombay Stock
Exchange and the National Stock Exchange (India). With a net worth of over Rs 3,300 crore and
over 165,000 shareholders, Reliance Capital has established its presence as a leading player in
the financial services sector in the country.
On conversion of outstanding equity instruments, the net worth of the company will
increase to about Rs 4,100 crore.
Reliance Capital sees immense potential in the rapidly growing financial services sector in India
and aims to become a dominant player in this industry and offer fully integrated financial
services. It is headed by Anil Ambani.
Reliance Capital 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 has interests in asset management and
mutual funds, life and general insurance, private equity and proprietary investments, stock broking
and other activities in financial services.
I have done my project in Reliance Money and the study of mutual funds of Reliance products or
schemes.
About Reliance Money:
Reliance Money is a group company of Reliance Capital; one of India's leading and fastest
growing private sector financial services companies, ranking among the top 3
private sector financial services and banking companies, in terms of net worth. Reliance Capital is a
part of the Reliance Anil Dhirubhai Ambani Group.
Reliance Money which commenced commercial operations in April 2007 has over
300,000 customers and 4,300 outlets in more than 3,500 locations across India.
Reliance Money is a comprehensive electronic transaction platform offering a wide range
of asset classes. Its Endeavour is to change the way India transacts in financial markets
and avails financial services. Reliance Money is a single window, enabling you to access,
amongst others in Equities, Equity & Commodities Derivatives, Mutual Funds, IPO’s,
Life & General Insurance products, Off share Investments, Money Transfer, Money
Changing and Credit Cards.
Reliance Capital Ltd. has interests in asset management, life and general insurance,
private equity and proprietary investments, stock broking and other financial services.
ABOUT RELIANCE MUTUAL FUND:

Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with Average Assets
Under Management (AAUM) of Rs. 84563.92 Crs (AAUM for June 30th 08 ) and an investor base of
over 68.38 Lakhs.
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.
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
Table1. Shows Distribution of the respondents based on the age.
Respondents Percent
S.No Age
1 BELOW 20 30 12
2 20 -30 86 34.4
3 30 - 40 69 27.6
4 40 - 50 42 16.8
5 ABOVE 50 23 9.2
Total 250 100
Age
100
90
80
70
60 Respondents
50
40 Percent
30
20
10
0
Source: Data gathered from the primary source
Interpretation:
Table1. Shows that distribution of the respondents based on the age group.
The highest 34.4% of the respondents were 20-30 years age group followed by 12% of the
respondents were below 20 years age group and 27.6% of the respondents were 30-40 years age
group and 16.8% of the respondents were 40-50 years and 9.2% of the respondents were above
50 years age.
Table2. Shows
Respondents Percent
S.No Gender Distribution of
the respondents
186 74.4 based on the
1 MALE
gender:
2 FEMALE 64 25.6
250 100
Total
Interpretation:
Table2. Shows that distribution of the respondents based on the gender.
The highest 74.4% of the respondents were male followed by 25.6% of the respondents were
female
Gender
200
150
MALE
100
FEMALE
50
0
Respondentes Percent
Table3. Shows distribution of the respondents based on the Educational Qualification:
S.No Education Respondents Percent

1 UG 72 28.8
2 PG 113 45.2
3 PROFESSIONAL 46 18.4
19 7.6
4 HSC/SSLC
Total 250 100
Interpretation:
Table3. Shows that distribution of the respondents based on the educational qualification.
The highest 45.2% of the respondents were PG and 28.8% of the respondents were UG and
18.4% of the respondents were Professional and 7.6% of the respondents were
HSC/SSLC.
Education Qualification
120
100
80
Respondentes
60
Percent
40
20
0
Table4. Shows distribution of the respondents based on the Occupation:
Respondents Percent
S.No Occupation
1 PROFESSIONAL 19 7.6
2 OWN BUSINESS 112 44.8
3 PRIVATE EMPLOYEE 61 24.4
4 GOVT EMPLOYEE 42 16.8
5 OTHERS 16 6.4
Total 250 100
Table4. Shows that distribution of the respondents based on the occupation.
The highest 44.8% of the respondents were own business and 7.6% of the respondents were
professional and 24.4% of the respondents were private employee and 16.8% of the respondents
were Govt employee and 6.4% of the respondents were others.
Occupation
PROFESSIONAL
OWN BUSINESS
6% 8%
17%
PRIVATE
EMPLOYEE
45%
24% GOVT
EMPLOYEE
OTHERS
Table5. Shows distribution of the respondents based on the Place of living:
Respondents Percent
S.No Place Of Living
1 URBAN 58 23.2
2 SEMI URBAN 92 36.8
3 RURAL 41 16.4
4 CITY 59 23.6
Total 250 100
Interpretation:
Table5. Shows that distribution of the respondents based on the place of living:
The highest 36.8% of the respondents are SEMI-URBAN and 23.2% of the respondents are
URBAN and 16.4% of the respondents are RURAL and 23.6% of the respondents are CITY.
Place of living
100
90
80
70
60
Respondentes
50
40 Percent
30
20
10
0
URBAN SEMI RURAL CITY
URBAN
Table6. Shows distribution of the respondents based on the monthly income:
Respondents Percent
S.N0 Monthly Income
1 LESS THAN 10000 11 4.4
2 10000 -15000 90 36
3 15000 -20000 69 27.6
4 20000 -25000 59 23.6
5 ABOVE 25000 21 8.4
Total 250 100

Interpretation:
Table6. Shows that distribution of the respondents based on the monthly income:
The highest 36% of the respondents were 10000-15000 and 4.4% of the respondents were below
10000 and 27.6% of the respondents were15000-20000 and 23.6% of the respondents were
20000-25000 and 8.4% of the respondents were above 25000.
Table7. Shows distribution of the respondents based on the awareness about fund is:
Awareness about Respondents Percent

S.No fund
1 HIGH 101 40.4
2 MEDIUM 90 36
3 LOW 45 18
4 NOT AWARE 14 5.6
250 100
Total
Interpretation:
Table7. Shows that distribution of the respondents based on the awareness about mutual
fund is:
The highest 40.4% of the respondents were High awareness and 36% of the respondents were
Medium awareness and 18% of the respondents were Low awareness and 5.6% of the
respondents were Not awareness.
Table8. Shows distribution of the respondents based on the investment in RELIANCE
Mutual funds so far is:
S.No Investment Respondents Percent

1 LESS THAN 10000 23 9.2
2 10000 -25000 135 54
3 25000 - 50000 41 16.4
4 ABOVE 50000 47 18.8
5 NOT INVESTED 4 1.6
250 100
Total
Interpretation:
Table8. Shows that distribution of the respondents based on the investment in RELIANCE
Mutual funds so far is:
The highest 54% of the respondents were invest 10000-25000 and 9.2% of the respondents were
invest less than 10000 and 16.4% of the respondents were invest 25000 - 50000 and 18.8% of the
respondents were invest above 50000 and 1.6% of the respondents not invested.
Table 9. Shows distribution of the respondents based on the RELIANCE Mutual funds are
a great way to let money grow:
Respondents Percent
S.No Money grow
1 STRONGLY AGREE 52 20.8
2 AGREE 106 42.4
3 STRONGLY DISAGREE 40 16
4 DISAGREE 52 20.8
Total 250 100
Interpretation:
Table9. Shows that distribution of the respondents based on the RELIANCE Mutual funds
are a great way to let money grow:
The highest 42.4% of the respondents were agree to let money grow and 20.8% of the
respondents were strongly agree to let money grow and 16% of the respondents were strongly
disagree to let money grow and 20.8% of the respondents were disagree to let money grow.
Table10. Shows Distribution of the respondents based on the choose the best types of
investments based on the satisfaction available from their return:
S.No Satisfaction investment Respondent Percent

1 RELIANCE Mutual funds 80 32
2 Bank FD 50 20
3 Chit funds 40 16
4 Bonds 35 14
5 Co-Operative Society 30 12
6 Post office Savings 15 6
Total 250 100
Interpretation:
Table10. Shows that distribution of the respondents based on the choose the best types of
investments based on the satisfaction available from their return.
The highest 32% of the respondents were choose on mutual fund and 20% of the respondents
were choose bank Fd and 16% of the respondents were choose Chit funds and 14% of the
respondents were choose bonds and 12% of the respondent were choose co- operative society
and 6%of the respondent were choose post office savings.
Table11. Shows distribution of the respondents based on the risk perception about mutual
fund:
Respondents Percent
S.Nos Risk perception
1 HIGH RISK 60 24
2 RISK 113 45.2
3 SAFE 31 12.4
4 VERY SAFE 46 18.4
Total 250 100
Interpretation:
Table11. Shows that distribution of the respondents based on the risk perception about
mutual fund:
The highest 45.2% of the respondents were Risk and 24% of the respondents were High-risk
12.4% of the respondents were Safe and 18.4% of the respondents were Very safe.
Table12. Shows distribution of the respondents based on the following schemes/ funds
would like to invest in mutual fund:
Respondents Percent
S.No SCHEMES/FUNDS
Source:
1 EQUITY ORIENTED 96 38.4 Data
2 DEBT ORIENTED 108 43.2 gathered
3 BALANCED ORIENTED 46 18.4 from the
primary
250 100 source
Total
Table12. Shows that distribution of the respondents based on the following schemes/funds
would like to invest in:
The highest 45.2% of the respondents were Risk and 24% of the respondents were High-risk
12.4% of the respondents were Safe and 18.4% of the respondents were Very safe.
Table13. Shows distribution of the respondents based on the following gives better return:
Respondents Percent
S.no Better return
1 EQUITY 51 20.4
2 INCOME FUND 113 45.2
3 GILT FUND 69 27.6
4 BALANCED FUND 17 6.8
Total 250 100
Interpretation:
Table13. Shows that distribution of the respondents based on the following gives better
return:
The highest 45.2% of the respondents were Income fund gives better return and 20.4% of the
respondents were Equity gives better return 27.6% of the respondents were Gilt fund and 6.8%
of the respondents were Balanced fund.
Better Return
7%
20%
EQUITY
28%
INCOME FUND
GILT FUND
BALANCED FUND
45%
Table14. Shows distribution of the respondents based on the influenced to invest in mutual
fund:
Respondents Percent
S.No Influenced
1 FRIENDS 59 23.6
2 RELATIVES 77 30.8
3 MEDIA 68 27.2
4 BROKERS 39 15.6
5 OTHERS 7 2.8
Total 250 100
Interpretation:
Table14. Shows that distribution of the respondents based on the influenced to invest in
mutual fund:
The highest 30.8% of the respondents were influenced Relatives and 23.6% of the respondents
were influenced Friends 27.2% of the respondents were influenced Media and 15.6% of the
respondents were influenced Brokers and 15.6% of the respondents were others.
Invest In Mutual Fund
90
80
70
60
50 Respondents
40 Percent
30
20
10
0
Table15. Shows distribution of the respondents based on the mutual fund schemes fulfill
objective of maximizing the return from the investment:
Respondents Percent
S.No Return from

1 TO A GREAT EXTENT 83 33.2
2 TO SOME EXTENT 133 53.2
3 DOES NOT FULFILL 34 13.6
Total 250 100
Interpretation:
Table15. Shows that distribution of the respondents based on the mutual fund schemes
fulfill objective of maximizing the return from the investment:
The highest 53.2% of the respondents were and 23.6% of the respondents were influenced
Friends 27.2% of the respondents were influenced Media and 15.6% of the respondents were
influenced Brokers and 15.6% of the respondents were others.
Table16. Shows distribution of the respondents based on the investors want to invest on
monthly savings:
Respondents Percent
S.no Monthly invest
1 RECURRING DEPOSITS 106 42.4
2 SIP 85 34
3 CHIT FUND 59 23.6
Total 250 100
Interpretation:
Table16. Shows that distribution of the respondents based on the investors want to invest
on monthly savings:
The highest 42.4% of the respondents were invest in recurring deposits saving scheme and 34%
of the respondents were invest in Sip saving scheme 23.6% of the respondents were invest in chit
fund saving scheme.
Table17. Shows Distribution of the respondents based on the choose the best income fund
based on the satisfaction available from their return:
S.No Income fund Returns Respondents Percent Source:

1 Reliance 80 32 Data
2 Grinlays super saver 30 12
3 Chole Triple ace 15 6
4 IDBI prim income fund 35 14
5 Prudential ICICI flexible income plan 40 16
6 Templeton India Income builder 50 20
Total 250 250
gathered from the primary source
Interpretation:
Table17ss. Shows that distribution of the respondents based on the choose the best income
fund based on the satisfaction available from their return.
The highest 32% of the respondents were choose HDFC income fund and 12% of the
respondents were choose Grindlays super saver fund and 6% of the respondents were choose
Chola Triple ace and 16% of the respondents were choose ICICI Pru income fund and 14% of
the respondent were choose IDBI income fund and 6%of the respondent were choose
TEMPLETON income fund.
ANALYSIS USING CHI-SQUARE WITH SPSS
EXAMPLE - 1
DEPENDENT ATTRIBUTE: Investment in mutual fund so far is

INDEPENDENT ATTRIBUTE: Monthly income
FIXING OF HYPOTHESIS
H0: There is a significant relationship between the attributes

H1: There is no significant relationship between the attributes
N-Par Tests
Chi-Square Test
Frequencies
MONTHLY INCOME
Observed N Expected N Residual
LESS THAN
11 50 -39
10000
10000 -15000 90 50 40
15000 -20000 69 50 19
20000 -25000 59 50 9
ABOVE 25000 21 50 -29
Total 250
YOUR INVESTMENT IN RELIANCE MUTUAL FUNDS SO FAR IS

Observed N Expected N Residual
LESS THAN
23 50 -27
10000
10000 -25000 135 50 85
25000 - 50000 41 50 -9
ABOVE 50000 47 50 -3
NOT INVESTED 4 50 -46
Total 250
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency
is 50.0.
Test Statistics
MONTHLY YOUR INVESTMENT IN RELIANCE
INCOME MUTUAL FUNDS SO FAR IS
Chi-Square 88.08 203.2
df 4 4
Asymp. Sig. 3.367E-18 7.70598E-43
Interpretation:
Since, the calculated value is less than the table value, H0 (null hypothesis) is accepted.
Conclusion:
Thus, it is concluded that there is no significant difference between the monthly income and
investors investment in RELIANCE Mutual funds so far is finding.
EXAMPLE - 2
DEPENDENT ATTRIBUTE: Awareness about the mutual fund

INDEPENDENT ATTRIBUTE: Place of living
FIXING OF HYPOTHESIS
H0: There is a significant relationship between the attributes

H1: There is no significant relationship between the attributes
N-Par Tests
Chi-Square Test
Frequencies
PLACE OF LIVING
Observed Expected N Residual
N
URBAN 58 62.5 -4.5
SEMI URBAN 92 62.5 29.5
RURAL 41 62.5 -21.5
CITY 59 62.5 -3.5
Total 250
YOUR AWARENESS ABOUT RELIANCE MUTUAL FUNDS IS
Observed Expected N Residual
N
HIGH 101 62.5 38.5
MEDIUM 90 62.5 27.5
LOW 45 62.5 -17.5
NOT AWARE 14 62.5 -48.5
Total 250
Test Statistics
PLACE OF LIVING YOUR AWARENESS ABOUT
RELIANCE MUTUAL FUNDS IS
Chi-Square 21.84 78.352 a. 0
Df 3 3 cells
Asymp. Sig. 7.043E-05 6.92604E-17
(.0%)
have expected frequencies less than 5. The minimum expected cell frequency is 62.5.
Interpretation:
Conclusion:
Thus, it is concluded that there is no significant difference between the place of living and
investors awareness of the mutual fund.
2.Correlations
MONTHLY YOUR
INCOME INVESTMENT
IN RELIANCE
MUTUAL
FUNDS SO
FAR IS
Pearson 1 0.213602365
MONTHLY INCOME Correlation
Sig. (2-tailed) 0.000674486
N 250 250
YOUR Pearson
INVESTMENT IN Correlation
RELIANCE 0.213602365 1
MUTUAL FUNDS
SO FAR IS
Sig. (2-tailed) 0.000674486
N 250 250
**. Correlation is significant at the 0.01 level (2-tailed).

Nonparametric Correlations
MONTHLY YOUR
INCOME INVESTMEN **.
T IN
RELIANCE
MUTUAL
FUNDS SO
FAR IS
Kendall's MONTHLY Correlation 1 0.181507
tau_b INCOME Coefficient
Sig. (2-tailed) 3.4848E+308 0.000798
N 250 250
YOUR Correlation 0.181507019 1
INVESTMENT Coefficient
IN RELIANCE
MUTUAL
FUNDS SO FAR
IS
Sig. (2-tailed) 0.000797563 3.5E+308
N 250 250
Spearma MONTHLY Correlation 1 0.203805
n's rho INCOME Coefficient
Sig. (2-tailed) 3.4848E+308 0.001194
N 250 250
YOUR Correlation 0.203805159 1
INVESTMENT Coefficient
IN RELIANCE
MUTUAL
FUNDS SO FAR
IS
Sig. (2-tailed) 0.001193747 3.5E+308
N 250 250
Correlation is significant at the 0.01 level (2-tailed).
3.Regression
Variables Entere/Removedb
Model Variables Variables Method

Entered Removed
1 Occupational 3.4848E+308 Enter
a. All requested variables entered.

b. Dependent Variable: WHICH THE FOLLOWING SCHEMES/FUNDS YOU WOULD LIKE
TO INVEST IN
Model Summary:
Model R R Square Adjusted R Std. Error of the

Square Estimate
1 0.23162 0.0536502 0.049834317 0.70972

52 44
Interpretation:
Conclusion:
Thus, it is concluded that there is no significant difference between the occupation and investors
like to invest schemes in RELIANCE Mutual funds.
4.ANOVA
Oneway
Relationship between the experience and material issues method.
Ho: There is no significant difference between the occupation and the following schemes/funds
would like to invest in.
H1: There is significant difference between the occupation and the following schemes/funds
would like to invest in.
Mod Sum of df Mean F Sig.

el Squares Square
1 Regressi 7.081832142 1 7.081832 14.05956 0.00022
on
Residual 124.9181679 248 0.503702
Total 132 249

a. Predictors: (Constant), OCCUPATION
b. Dependent Variable: WHICH THE FOLLOWING SCHEMES/FUNDS YOU WOULD
LIKE TO INVEST IN
Coefficients
Model Unstandardized Standardized t Sig.

Coefficients Coefficients
Std. Error Beta
5.22E-
1.364095446 0.124618038 10.94621
1 (Constant) 23
0.161685665 0.043120686 0.231625 3.749608 0.00022
OCCUPATION
Interpretation:
Conclusion:
Thus, it is concluded that there is no significant difference between the occupation and investors
like to invest schemes in RELIANCE Mutual funds.
5. Kolmogorov-Smirnov
NPar Tests
Relationship between the respondent age and objective of maximizing the return from the
investment.
Ho: There is no significant difference between the respondent age and objective of maximizing
the return from the investment.
H1: There is significant difference between the respondent age and objective of maximizing the
return from the investment.
AGE OBJECTIVE OF
MAXIMIZING THE
RETURN FROM THE a. Test
INVESTMENT distribution
N 250 250 is Normal.
Normal Mean 2.768 1.804
Parametersa
Std. Deviation 1.145173213 0.656741378
Most Extreme Absolute 0.212775341 0.28531754
Differences
Positive 0.212775341 0.24668246
Negative -0.131224659 -0.28531754
Kolmogorov- 3.364273543 4.511266417
Smirnov Z
Asymp. Sig. (2- 0 0
tailed)
Interpretation:
Conclusion:
Thus, it is concluded that there is no significant difference between the respondent age and
objective of maximizing the return from the investment.
CHAPTER V
FINDINGS SUGGESTIONS AND CONCLUSION
6. FINDINGS OF THE STUDY:
1. The comparison made between mutual fund & other forms of investment shows those mutual
fund products gives a higher, stable return than others. The rate of return available from
mutual fund is quite higher than other forms of investment. Apart from this mutual fund
gives different or diversified portfolios to the investor.
2. From the Analysis it is inferred that 34.4% of the respondents were 20-30 years age group
followed by 12% of the respondents were below 20 years age group and 27.6% of the
respondents were 30-40 years age group and 16.8% of the respondents were 40-50 years and
9.2% of the respondents were above 50 years age.
3. From the Analysis it is inferred that 74.4% of the respondents were male followed by 25.6%
of the respondents were female
4. From the Analysis it is inferred that 45.2% of the respondents were PG and 28.8% of the
respondents were UG and 18.4% of the respondents were Professional and 7.6% of
the respondents were HSC/SSLC.
5. From the Analysis it is inferred that 44.8% of the respondents were own business and 7.6%
of the respondents were professional and 24.4% of the respondents were private employee
and 16.8% of the respondents were Govt employee and 6.4% of the respondents were others.
6. From the Analysis it is inferred that 36.8% of the respondents are SEMI-URBAN and 23.2%
of the respondents are URBAN and 16.4% of the respondents are RURAL and 23.6% of the
respondents are CITY.
7. From the Analysis it is inferred that 36% of the respondents were 10000-15000 and 4.4% of
the respondents were below 10000 and 27.6% of the respondents were15000-20000 and
23.6% of the respondents were 20000-25000 and 8.4% of the respondents were above 25000.
8. From the Analysis it is inferred that 40.4% of the respondents were High awareness and 36%
of the respondents were Medium awareness and 18% of the respondents were Low
awareness and 5.6% of the respondents were not awareness.
9. From the Analysis it is inferred that 54% of the respondents were invest 10000-25000 and
9.2% of the respondents were invest less than 10000 and 16.4% of the respondents were
invest 25000 - 50000 and 18.8% of the respondents were invest above 50000 and 1.6% of the
respondents not invested.
10. From the Analysis it is inferred that 42.4% of the respondents were agree to let money grow
and 20.8% of the respondents were strongly agree to let money grow and 16% of the
respondents were strongly disagree to let money grow and 20.8% of the respondents were
disagree to let money grow.
11. From the Analysis it is inferred that 45.2% of the respondents were Risk and 24% of the
respondents were High-risk 12.4% of the respondents were Safe and 18.4% of the
respondents were Very safe.
12. From the Analysis it is inferred that Risk and 45.2% of the respondents were 24% of the
respondents were High-risk 12.4% of the respondents were Safe and 18.4% of the
respondents were Very safe.
13. From the Analysis it is inferred that 45.2% of the respondents were Income fund gives better
return and 20.4% of the respondents were Equity gives better return 27.6% of the
respondents were Gilt fund and 6.8% of the respondents were Balanced fund.
14. From the Analysis it is inferred that 30.8% of the respondents were influenced Relatives and
23.6% of the respondents were influenced Friends 27.2% of the respondents were influenced
Media and 15.6% of the respondents were influenced Brokers and 15.6% of the respondents
were others.
15. From the Analysis it is inferred that 53.2% of the respondents were and 23.6% of the
respondents were influenced Friends 27.2% of the respondents were influenced Media and
15.6% of the respondents were influenced Brokers and 15.6% of the respondents were others.
16. From the Analysis it is inferred that 42.4% of the respondents were invest in recurring
deposits saving scheme and 34% of the respondents were invest in Sip saving scheme 23.6%
of the respondents were invest in chit fund saving scheme.
SUGGESTIONS
 Investment in real estate:
Mutual fund is allowed to invest in real estates. Real estates gives higher profit & there
by enables the investors in RELIANCE Mutual funds to get higher returns for their
investment. SEBI must allow RELIANCE Mutual funds to invest either directly in real
estate business or invest in companies shares that do real estate business.
 Higher awareness among investors:
Mutual fund companies should bring greater awareness in the investors mind about their
different schemes. Since the bank interest rates are falling, the mutual fund companies
must bring awareness among investors about their products & enable the investors to get
a better return for their investments.
 Tax rebate for investing in mutual fund:
Tax rebate should be provided to the investor for investing in mutual fund so as to
encourage them to invest in RELIANCE Mutual funds apart from ELSS.
 Innovative products or funds:
Mutual fund companies must create innovative funds for the investor keeping in mind the
investment period of the investor. For e.g.: Standard charted mutual fund offered medium
term plan for the investor which gives a better return when the investor looks for a
investment period of 6 months – 1years.
CONCLUSION
The study on investor’s perception towards the RELIANCE Mutual funds enables us to
find over other investments plans, level, structure, benefits and superiority of RELIANCE
Mutual funds level compare with other investments and mutual funds. This study constitute a
sample of 250 different kinds of investors they diversification of investment plans, opinion of the
investors has been collected through structured questionnaire and study confined to the area of
different areas in Chennai. Most of the investors have very good knowledge about RELIANCE
Mutual funds investment and other investment plan and they are satisfied with the returns and
with the performance of the investments scheme. Very easily long term and short term wealth
can be created and investors are aware of that and this is a scheme which is disciplined and it
gives good return and it protects the investors when the market falls.
Conclusion is that almost all the investors are satisfied with the returns and with the performance
of the schemes. Based on the findings and analysis it can be concluded that the investors are
satisfied with the returns and performance of RELIANCE Mutual funds superiority and over
other investments plan from other mutual fund companies.
BIBLIOGRAPHY
1. A.N ARORA & S.ARORA “Statistical For Management”

THE U.S PUBLISHED….
2. UMA SEKARAN “Research Methods for Business”
3. AUTHOR:
DR. S GURUSAMY
FINANCIAL SERCICES READER, “MUTUAL FUNDS AND OTHER
INVESTMENT “
DG VAISHNAV COLLEGE
PUBLISHED BY MARGHAM…
4. AUTHOR: “INVESTMEN ANALYZIS AND PLANNING”

BURTON G. MALKIEL
PUBLISHED BY THE INVESTMENT COMPANY OF THE U.S.
AUTHOR:
C R KOTHARI
SECOND EDITION “RESEARCH METHODOLOGY”
PUBLISHE BY WISHWA PRAKASHAN
WEBSITES:
 www.amfifndia.com
 www.iepindia.com
 www.mutualfundsindia.com
ANNEXURE
QUESTIONNAIRE
DEMOGRAPHIC DETAILS:
1. Name__________________________________
2. Address________________________________
3. Age
□ Below 20
□ 22 to 30
□ 30 to 40
□ 40 to 50
□ Above 50
4. Gender
□ Male
□ Female
5. Education qualification
□ Under graduate
□ post graduate
□ professional
□ HSC/SSLC
6. Occupation
□ Professional
□ Own Business
□ Private employee
□ Govt employee
□ Others, please specify_________
7. Place of living
□ urban
□ Semi urban
□ Rural
□ city
8. Monthly Income
□ Less than 10000
□ 10000 to 15000
□ 15000 to 20000
□ 20000 to 25000
□ Above 25000
9. Your awareness about RELIANCE mutual funds is

□ High
□ Medium
□ Low
□ Not aware
10. Your Investment in RELIANCE Mutual funds so far is

□ Less than 10,000
□ 10, 000 to 25,000
□ 25,000 to 50,000
□ Above 50,000
□ Not Invested
11. RELIANCE Mutual funds are a great way to let your money grow
□ Strongly agree
□ Agree
□ Strongly Disagree
□ Disagree
□ Neither Agree nor Disagree
12. Choose the best types of investments based on the satisfaction available from their return.
□Mutual fund
□Bank Fund
□Chit funds
□Bonds
□Co-operative society
□Post office savings
13. What is your risk perception about RELIANCE mutual fund

□ High risky
□ Risky
□ Safe
□ Very Safe
14. Which the following schemes / funds of RELIANCE you would like to invest in
□ Equity oriented
□ Debt oriented
□ Balanced fund
15. Which of the following gives you better return from RELIANCE
□ Equity
□ Income fund
□ Gilt fund
□ Balanced fund
16. Who influenced you to invest in RELIANCE mutual funds?

□ Friends
□ Relatives
□ Media
□ Brokers
□ Others
17.Does the RELIANCE mutual fund schemes fulfill your objective of maximizing the return
from the investment
□ To a great extent
□ To some extent
□ Does not fulfill
18. Where do you want to invest you’re your monthly savings

□ Recurring deposits
□ SIP
□ Chit fund
19.Rank the following Income funds based on the satisfaction available from their
Returns.
□ RELIANCE Income fund
□ Grindlays Super saver
□ Chola Triple ace
□ IDBI prim income fund
□ ICICI pru
□ Templeton India income builder
20. Give your suggestion to improve the RELIANCE mutual funds?

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A STUDY ON MUTUAL FUNDS AT

RELIANCE MUTUAL FUNDS

A mutual fund is a type of professionally managed collective investment vehicle that

Characteristics of a Mutual Fund:

Emergence of Mutual Fund:

STATEMENT OF THE PROBLEM:

4. 2 NEED FOR THE STUDY

A mutual fund is a type of professionally managed collective investment vehicle that

 To understand how a mutual fund works.

4.4 SCOPE OF THE STUDY

4.5. RESEARCH DESIGN

The purpose of descriptive research is to get the characteristic of an individual toward an

The selected samples based on the stratified random sampling.

Stratified Random sampling:

Under stratified random sampling the population is divided in to several. Sub-population

Ho =There is no significant difference exists between the Occupation and the

Preference for a specific scheme.

H1 = There is significant difference exists between the Occupation and the

Preference for a specific scheme.

DATA COLLECTION METHOD

III.SAMPLING METHOD AND SAMPLE SIZE

A convenience sample is obtained by selecting ’’convenient’’ population units.

IV. SAMPLE SIZE DETERMINANTS

Part I to be demographic details on age, sex, occupation, income, education.

A questionnaire is simply a formalized set of questions for eliciting information.

The different types of questions used for the study are:

Open- ended questions.

Closed- ended questions.

Multiple choice questions.

TOOLS FOR ANALYSIS

Percentage= (number of responses/total number of respondents)*100.

CHI SQUARE TEST:

Regression is the determination of a statistical relationship between two or more

Analysis of Variance (abbreviated as ANOVA) It is the essentially a procedure for

4.6 LIMITATIONS OF THE STUDY

4.7 EXPECTED CONTRIBUTION OF THE STUDY

Using Mutual Fund:

PUBLISHED BY THE INVESTMENT COMPANY OF THE U.S.

DONALD R. LICHTENSTEIN [PROFESSOR OF FINANCE]

Features, role, benefits of mutual funds superiority over other investments:

FINANCIAL SERCICES READER

PAGE NO: 267 TO 283

www.amfiindia.com www.msn.com www.mutualfund.com

HISTORY OF MUTUAL FUNDS IN INDIA:

Phase 1 – 1964 – 1987 [Unit Trust of India]

Phase 2 – 1987 – 1993 [Entry of Public Sector Funds]

Phase 3 – 1993 – 1996 [Emergence of Private Funds]

Phase 4 – 1996 [SEBI Regulation for Mutual Funds]

India across the development phases discussed above

Place of Mutual Funds in Financial Markets:

Understanding of mutual fund

Using Mutual Fund:

By offering diversified portfolios Mutual Fund enable investors to hold diversified

4. Reduction of transaction costs:

6. Helps in financial planning:

7. Enables regular periodic saving:

It enables regular periodic savings through systematic investment plan [SIP].

Why Buy Mutual Fund?