A study on risk and return of various schemes in reliance mutual funds

Click to editby: karthik.k style Presented Master subtitle

Guided by: Mr.Thiyagarajan

3/20/12

Abstract:

The project title is A STUDY

ON RISK RETURN VARIOUS AND OF
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Industry profile:
The origin of mutual fund industry in India is with the

introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry.
Before, the monopoly of the market had seen an ending

phase, the Assets Under Management (AUM) was Rs. 67 bn. The private sector entry to the fund family rose the AUM to Rs. 470 in March 1993 and till April 2004, it reached the height of 1,540 bn.
The main reason of its poor growth is that the mutual fund

industry in India is new in the country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling.
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cont,
The mutual fund industry can be broadly put into four phases: First Phase - 1964-87:
Unit Trust of India (UTI) was established on 1963 by an

Act of Parliament. It was set up by the Reserve Bank of India.

In 1978 UTI was de-linked from the RBI and the

Industrial Development Bank of India (IDBI).

The first scheme launched by UTI was Unit Scheme

1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public 3/20/12 Sector Funds):

Cont..,
Third Phase - 1993-2003 (Entry of Private Sector Funds):
With the entry of private sector funds

in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families.
As at the end of January 2003, there

were 33 mutual funds with total assets of Rs. 1,21,805 3/20/12 crores. The

Company profile:
The Reliance group one of Indias largest business houses with revenues of Rs. 990 billion ($22.6 billion) that is equal to 3.5 percent of the countrys gross domestic product was split into two.
The group which claims to contribute nearly 10 per

cent of the countrys indirect tax revenues and over six percent of Indias exports was divided between Mukesh Ambani and his younger brother Anil on June 18, 2005.
Reliance Mutual Fund (RMF) is one of Indias 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.
3/20/12 Reliance Mutual Fund, a part of the Reliance Anil

Cont..,
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.

VISION STATEMENT
To be a globally respected wealth creator, with an emphasis on

customer care corporate governance.

and

culture

of

good

MISION STATEMENT
To create and nurture a world-class, high performance environment aimed at delighting their customers.

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Cont..,
THE MANAGEMENT TEAM:
Board of Directors: Mr. Amitabh Chaturvedi Mr. Kanu Doshi Mr. Manu Chadha Mr. Sushil Tripathi CEO: Deputy CEO: Mr. Vikrant Gugnani Mr. Sundeep Sikka

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Cont..,
Products:
Reliance Growth Fund Reliance Income Fund Reliance Medium Term Fund Reliance Monthly Income Plan Reliance NRI Income Fund ? Reliance Equity Opportunities Fund ? Reliance Equity Fund ? Reliance Regular Savings Fund ? Reliance Index Fund

Reliance NRI Equity Fund

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? Reliance Long Term Equity Fund ? Reliance Vision Fund

Objectives:
Primary objective:
To study the risk and return of various schemes in

reliance mutual funds

Secondary objective:
To know the concepts of risk and return of portfolio. To determine the relationship (or trade-off) between

risk and return of portfolio.

To

highlight the difference between avoidable (unsystematic) risk and unavoidable (systematic) risk; and explain how proper diversification can eliminate one of these risks.

To study the risk involved in different schemes. 3/20/12 To study the different schemes provided by reliance

Scope:
The study was limited to just findings the risk and return

associated with the schemes of reliance mutual fund.

The study covers the five different schemes provided by

reliance mutual fund. Are as :

v 1) Reliance growth fund v 2) Reliance vision fund v 3) Reliance banking fund v 4) Reliance Pharma fund

v 5) Reliance equity opportunities fund The study covers the period four years from Jan2008 to

Dec2011.
The study covers only the open-ended funds. 3/20/12

Research problem:

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Thank you,

with regards, k.karthik

3/20/12