Reliance Growth Fund Project
Reliance Growth Fund Project
Reliance Growth Fund Project
A mutual fund is a scheme in which several people invest their money for a common financial cause. The collected money invests in the capital market and the money, which they earned, is divided based on the number of units, which they hold.
The mutual fund industry started in India in a small way with the UTI Act creating what was effectively a small savings division within the RBI. Over a period of 25 years this grew fairly successfully and gave investors a good return, and therefore in 1989, as the next logical step, public sector banks and financial institutions were allowed to float mutual funds and their success emboldened the government to allow the private sector to foray into this area.
The advantages of mutual fund are professional management, diversification and economies of scale, simplicity, and liquidity. The disadvantages of mutual fund are high costs, overdiversification, possible tax consequences, and the inability of management to guarantee a superior return.
The biggest problems with mutual funds are their costs and fees it include Purchase fee, Redemption fee, Exchange fee, Management fee, Account fee & Transaction Costs. There are some loads which add to the cost of mutual fund. Load is a type of commission depending on the type of funds.
Mutual funds are easy to buy and sell. You can either buy them directly from the fund company or through a third party. Before investing in any funds one should consider some factor like objective, risk, Fund Managers and scheme track record, Cost factor etc. There are many, many types of mutual funds. You can classify funds based Structure (open-ended & close-ended), Nature (equity, debt, balanced), Investment objective (growth, income, money market) etc.
A code of conduct and registration structure for mutual fund intermediaries, which were subsequently mandated by SEBI. In addition, this year AMFI was involved in a number of developments and enhancements to the regulatory framework.
The most important trend in the mutual fund industry is the aggressive expansion of the foreign owned mutual fund companies and the decline of the companies floated by nationalized banks and smaller private sector players.
Reliance Mutual Fund, UTI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund and Birla Sun Life Mutual Fund are the top five mutual fund company in India. Reliance mutual funding is considered to be most reliable mutual funds in India. People want to invest in this institution because they know that this institution will never dissatisfy them at any cost. You should always keep this into your mind that if particular mutual funding scheme is on larger scale then next time, you might not get the same results so being a careful investor you should take your major step diligently otherwise you will be unable to obtain the high returns.
INTRODUCTION
DEFINITION
Mutual funds are collective savings and investment vehicles where savings of small (or sometimes big) investors are pooled together to invest for their mutual benefit and returns distributed proportionately. A mutual fund is an investment that pools your money with the money of an unlimited number of other investors. In return, you and the other investors each own shares of the fund. The fund's assets are invested according to an investment objective into the fund's portfolio of investments. Aggressive growth funds seek long-term capital growth by investing primarily in stocks of fastgrowing smaller companies or market segments. Aggressive growth funds are also called capital appreciation funds.
When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. Any change in the value of the investments made into capital market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors.
For example
A. If the market value of the assets of a fund is Rs. 100,000 B. The total number of units issued to the investors is equal to 10,000. C. Then the NAV of this scheme = (A)/(B), i.e. 100,000/10,000 or 10.00 D. Now if an investor 'X' owns 5 units of this scheme
Mutual funds can be either or both of open ended and closed ended investment companies depending on their fund management pattern. An open-end fund offers to sell its shares (units) continuously to investors either in retail or in bulk without a limit on the number as opposed toa closed-end fund. Closed end funds have limited number of shares. Mutual funds have diversified investments spread in calculated proportions amongst securities of various economic sectors. Mutual funds get their earnings in two ways. First is the most organic way, which is the dividend they get on the securities they hold. Second is by the redemption of their shares by investors will be at a discount to the current NAVs (net asset values).
RULES OF S.E.B.I.FOR MUTUAL FUND PRELIMINARY RULE:1. Short title, Application and Commencement
a. These regulations may be called the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. b. They shall come into force on the date of their publication in the Official Gazette. 2. Definitions In these regulations, unless the context otherwise requires :a. "Act" means the Securities and Exchange Board of India Act 1992, (15 of 1992); b. "Advertisement" includes every form of advertising, whether in a publication, by display of notices, signs, labels or by means of circulars, catalogues or other documents, by an exhibition of. c. pictures or photographic films, by way of sound broadcasting or television, or in any other manner;
Company Profile
COMPANY PROFILE
Reliance Capital Asset Management 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. RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of India (SEBI). It had lead managed/co-managed 15 issues of an aggregate value of Rs. 400 crore and had underwritten 33 issues for an aggregate value of Rs. 550 crore. All these companies were listed on various exchanges. RCL obtained its registration as a Non-banking Finance Company (NBFC) in December 1998. In view of the regulatory requirements RCL surrendered its Merchant Banking License. RCL has since diversified its activities in the areas of asset management and mutual fund; life and general insurance; consumer finance and industrial finance; stock broking; depository services; private equity and proprietary investments; exchanges, asset reconstruction; distribution of financial products and other activities in financial services. The Reliance Anil DhirubhaiAmbani 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).
VISION
Reliance Capital's vision is that: By 2015, it will be a company that is known as: "The most profitable, innovative, and most trusted financial services company in India and in the emerging markets". In achieving this vision, the company will be both customer-centric and innovation-driven.
Business Overview
Reliance Capital, a constituent of CNX Nifty Junior and MSCI India, is a part of the Reliance Group. It is one of India's leading and amongst most valuable financial services companies in the private sector. Reliance Capital has interests in asset management and mutual funds; life and general insurance; commercial finance; equities and commodities broking; investment banking; wealth management services; distribution of financial products; exchanges; private equity; asset reconstruction; proprietary investments and other activities in financial services. Reliance Mutual Fund is amongst top two Mutual Funds in India with over seven million investor folios. Reliance Life Insurance and Reliance General Insurance are amongst the leading private sector insurers in India. Reliance Securities is one of Indias leading retail broking houses. Reliance Money is one of Indias leading distributors of financial products and services. Reliance Capital has a net worth of Rs. 11,696 crore (US$ 2.3 billion) and total assets of Rs. 35,344 crore (US$ 6.9 billion) as on March 31, 2012.
Exchange, Third Party Products Other Businesses Exchanges, Private Equity, Institutional Broking, Asset Reconstruction, Venture Capital
Chairman's Profile
Shri Anil D. Ambani, regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D. Ambani, is the Chairman of Reliance Capital Limited, Reliance Infrastructure Limited, Reliance Communications Limited and Reliance Power Limited. He is also on the Board of Reliance Infratel Limited and Reliance Anil DhirubhaiAmbani Group Limited. He is the President of the DhirubhaiAmbani Institute of Information and Communication Technology, Gandhinagar, Gujarat. An MBA from the Wharton School of the University of Pennsylvania, ShriAmbani is credited with pioneering several path-breaking financial innovations in the Indian capital markets. He spearheaded the countrys first forays into overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Under his Chairmanship, the constituent companies of the Reliance Group have raised nearly US$ 7 billion from global financial markets in a period of less than 3 years. He is currently a member of : Wharton Board of Overseers, The Wharton School, USA Board of Governors, Indian Institute of Management (IIM), Ahmedabad Executive Board, Indian School of Business (ISB), Hyderabad
In June 2004, ShriAmbani was elected as an Independent member of the RajyaSabha Upper House, Parliament of India, a position he chose to resign voluntarily on March 29, 2006.
Awarded by Light Readings as the Person of the Year 2008 for outstanding achievements in the communication industry. Voted 'the Businessman of the Year' in a poll conducted by The Times of India TNS, December, 2006.
Voted the 'Best role model' among business leaders in the biannual Mood of the Nation poll conducted by India Today magazine, August 2006.
16
Conferred 'the CEO of the Year 2004' in the Platts Global Energy Awards. Conferred The Entrepreneur of the Decade Award by the Bombay Management Association, October 2002.
Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December, 2001.
Vikrant Gugnani (Chief Executive Officer, International Business- Reliance Capital) V. R. Mohan (President and Company Secretary )
Board of Directors
KanuDoshi SushilTripathi Manu Chadha SoumenGhosh
Management Team
SundeepSikka CEO HimanshuVyapak Deputy CEO Sunil B. Singhania Head - Equity Investments Amitabh Mohanty Head - Fixed Income
Commodities
Head of Departments
Pradeep Andrade Infrastructure & Admin Milind Gandhi Chief Financial Officer Rajesh Derhgawen Head - HR, Admin & Infrastructure VinayNigudkar Information Technology Bhalchandra Joshi Head - Service Delivery & Investor Relations GeetaChandran Operations & Settlement MuneeshSud Legal, Secretarial & Compliance Sanjay Kumar Singh Head - Product Development
Zonal Heads
Gurbir Chopra Northern Zone Head AashwinDugal Western Zone Head GopalKhaitan Southern Zone Head VikasRathie Eastern Zone Head
COMPETITORS
OBJECTIVE
1. To analyze the benefits from Reliance Mutual Fund investment against banks and insurance 2. To analyse investment option provided by Reliance Mutual fund. 3. To Study the awareness of mutual funds in Nagpur . 4.The main objective of this project is concerned with getting the opinion of people regarding Mutual Funds, to target them and create awareness while with the generation of leads. 5. I have tried to explore the general opinion about Mutual Funds. It also covers why not investors are availing the services of financial advisors.
SCOPE
In my project the scope is limited to some prominent mutual funds in the mutual fund industry. I analyzed the funds depending on their schemes like equity, income, balance. But there is so many other schemes in mutual fund industry like specialized (Banking, Infrastructure, Pharma) funds, index funds etc. My study is mainly concentrated on equity schemes, the returns, in income schemes therating of CRISIL, ICRA and other credit rating agencies.
RESEARCH METHODOLOGY
Collection of Data
Primary Data:
The Primary data is collected from bank because Reliance have a tie-up with nationalized banks like Central bank of India, bank of India, cosmos bank, Andhra Bank etc.
Sample size
I have taken 150 samples out of 150 samples 54 have responded to my survey and rest of 96 are not aware of mutual funds.
Secondary data
Published data are available in: Publications of central, state and local newspapers Publication of foreign government or of international bodies Technical or trade journals Books, magazines and newspapers and Internet Public record and statistics, historical documents and sources of public information.
Ordinal scale:A ranking scale in which numbers are assigned to the objects to indicate the relative extent to which some characteristics is possessed. Thus it is possible to know whether an object has more of a characteristics than some other object e.g. Quality ranking
Analysis of data:By preparing charts and tables from the data The data analysis is done on the basis of Rate of return of the each company
Chart Title
Yes No
Yes 36%
Analysis
36% are interested to invest in mutual funds and 64% are not interested because mojority of the people trust on other investments. There may be so many cause behind it like having lack of appropriate knowledge regarding mutual funds.
Reasons
Lack of knowledge about mutual funds Enjoys investing in other options Its benefits are not enough to drive you for investment No trust over the fund managers 73 34 15 28
Responds
Chart showing the the reason for not investing in mutual funds of respondents towards mutual funds
Responds
80 70 60 50 40 30 20 10 0 Lack of knowledge Enjoys investing in Its benefits are not No trust over the about mutual other options enough to drive you fund managers funds/insurance for investment 15 34 28 Responds 73
Analysis
30 Dayananda Sagar Business School
Maximum primary customer has lack of awareness about mutual funds because people are interested in enjoying in other option or has no trust according to my analysis. And the people don't want to take risk investing in mutual funds.
Responses
Totally ignorant
Responds
43 51 30
Partial knowledge of mutual funds Aware only of any specific scheme in which you invested Fully aware
26
Chart showing the the reason for not investing in mutual funds of respondents towards mutual funds
60 50 40 30 20 10 0 Totally ignorant Partial knowledge of Aware only of mutual funds any specific scheme in which you invested 43 51 30 26 Responds
Fully aware
Analysis: In the view of most of the respondents, have Partial knowledge of mutual funds but they don't know the benefits of the same. And 43 respondance are not interested in mutual funds.my aim is to make them understand and create awareness to them. Because they believe in banks and other investments only.
Table showing the which is the most suitable stage to invest in mutual funds
Responses
Young unmarried stage Young Married with children stage Married with older children stage Pre-retirement stage
Responds
56 32 28 34
Chart showing the which is the most suitable stage to invest in mutual funds
Responds
60 50 40 32 30 20 10 0 Young unmarried Young Married with Married with older stage children stage children stage Pre-retirement stage 28 Responds 56
34
Interpretation: According to my survey young married stage people are interested to invest i.e.. 56 out of 150 are interested to invest in investments. The young which are married and have children who show interest are only 32 out of 150. The pre retirement people contribute about 34 of 150 . Whereas married with younger are the least number with only 28 . It show younger and unmarried have more interest in investments.
Saving account Fixed deposits Insurance Mutual Funde. Post Office-NSC, Shares/Debentures Gold/ Silver Real Estate PF Chart showing the kind of investments you prefer most
Response
Gold/ Silver 8% Shares/Debenture s 2% Post Office-NSC, 9% Mutual Funde. 13% Real Estate 5%
PF 1%
Interpretaion: According to the graph shown above the people are interested more in saving account rather than in other areas with considerable amount of 58 out of 150 and whereas others account less in number.
Chart showing the investing your money, which factor you prefer most
Company reputation, 28
Liquidity, 21
High Return 32
Low Risk 69
Interpretation: As the human intention shows that most of the investors are not ready to take risk. As to quantify that almost 69 out of 150 have selected low risk investments in real time. Where as company reputation, high returns and liquidity are 28,32 and 21 respectively with liquidity at the last position.
Responds 52 27 17
Responds
Not any specific reason, 17 Not aware of MF Not aware of MF , 52 Higher risk Not any specific reason
Higher risk , 27
Interpretation
According to pie chart table we can analysis that:
1) 52 Out of 96 are lack of knowledge regarding the mutual funds 2) 27 out of 96 is thinking are investing mutual funds are high risk. 3) Among 96,17 are not at all given any specification reasons why they are nor investing in mutual funds.
SBIMF UTI HDFC Reliance ICICI prudential funds JM mutual fund Other. Specify
Responds
JM mutual fund ICICI prudential funds Reliance HDFC UTI SBIMF 0 2 4 6 8 10 6 10 12 14 16 2 5 14 14 Responds
Chart showing in Mutual Funds which mode of investment will respondents prefer
Interpretation
According to pie chart table we can analysis that: 1) 35 Out of 54 are among with Systematic investment plan because It can be done in monthly 2) 19 are interested in lump sum amount among 96.means 3) By Systematic invesment plans invester can invest there money by monthly basis.it can reduce the burden of the invester and gives better results.
General Oil and petroleum Gold fund Diversified equity fund Power sector Debt fund Banking fund Real estate fund
Responds 4 5 18 3 5 0 11 8
Debt fund, 0
Interpretation: 1) As per my analysis as above we can say that in mutual fund investers are interested in gold fund.because it gives one of the best retunes than any other retures 2) 11 Out of 54 are interested in banking fund as it gives ever green retuns. 3) Real estate fund plays an third place in as per respondents
Responses
Others 4
Agriculture
Business
21
Responses
Pvt. Sec
12
Govt. Sec 0 5
14 10 15 20 25
Analysis:1) Majority of respondents are related to business field means 21 out of 54. 2) As per data above next respondents are related to government sector, private sector, agriculture sector are 14,12,3 respectively.
Up toRs.10,000 Rs. 10,001 to 15,000 Rs. 15,001 to 20,000 Rs. 20.001 to 30,000 Rs. 30.001 and above
Responses 5 10 9 13 17
Responses
Up toRs.10,000 9%
Analysis 1)31% Out of 100 are related to 30001 and above salary respondents in the above Chart. 2) 24% out of 100 to 20001 to 30000 salary respondents in the above Chart. 3)19% out of 100 to 10000 to 15001 salary respondents in the above Chart. 4)17% out of 100 to 10000 to 15000 salary respondents in the above Chart
From all the above analysis the interpretation that I have come up with is as follows:Interpretation of data
REASONS
are
you can get information Like - Fixed deposit, invest in the equity. on them easily. Recurring deposit, gold Like - Equity shares, schemes. 2.
ABEGIN SMALL
preference share.
Most mutual funds will The amount of fixed It has start with less let you start with deposit should be investment if shares are available in the market.
Investment Plan, some will let you start with only Rs.100. 3.
CONVENIENT
Easy to buy and sell of There is no one option Investor can buy and fund, easy to get available investing to check sell shares online. on
information online.
amount
An investor who lacks There are schemes made In the share market the time or knowledge to by fund manager only there manage their are not any own once and its not flexible schemes or fund.
investments can turn to in the schemes in the the mutual fund and let a bank. professional handle all
the securities, analysis, and questions of when to buy or sell for them.
5.
are
no The
opportunities
fund really means you opportunities to added should be getting on the are a part owner in a extra fund in the existing basis of up and down pooled managed diversification, schemes. by market condition and it will be done in short period of time.
investments through this alliance that you could never afford on your own. 6.
LOWER YOUR RISK
Mutual funds diversify There is no risk but get In the share market your portfolio by less return. there has high risk to invest in the market.
investing in a number of securities and so spread the risk out into more baskets. 7.
CHOICES
are
limited
have many thousands of be limited and over a choices to invest in the options to choose from. long period of time. You can make choices based on those grounds as well as the financial stability of the fund itself and your particular share market.
financial plan. 8.
DIVERSIFICATION
is
fund typically invests in diversification available diversifying his shares dozens of companies in in the bank scheme. different sometimes industries, even in to other shares.
different
countries
9.
TRANSPARENCY
As an investor, you get The bank not informing In the share market they updates on the value of about the update to the updating every minutes your units, information customer. on specific investments made by the mutual fund and the fund manager's strategy and outlook. his share prices with help of 5 working days.
10.
LIQUID ASSETS
Mutual funds can be There are not get liquidity Shares can be liquid bought or sold on any of schemes in the banks. day the market is doing business. The money can be in your hands in a matter of a few days. quickly with the help of Demat A/C.
11.
RETURNS
In mutual fund there is In the field of bank there In the share market low risk and generate is no risk but less returns. high returns. there is high risk and returns depending market. should on be the
I have given detailed information and retunes that generate from last 5 years detail reliance equity Diversified fund that is Reliance Growth funds in following. So that people will get awareness about the same.
Reliance Growth Fund Nature :Open-ended Equity Growth Scheme Investment Objective:
The primary investment objective of the scheme is to achieve long term growth of capital by investing in equity and equity related securities through a research based investment approach.
Date of Allotment:08/10/1995 Inception Date:08/10/1995 Quarterly AAUM (Rs. in Crores):5557 ( 30/06/2012 ) Minimum Investment:
Retail Plan- Rs 5000 and in multiples of Re. 1 thereafter IP Plan- Rs 5 cr and in multiples of Re. 1 thereafter
Retail Plan & Institutional Plan - 1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units - Nil if redeemed or switched out after completion of 1 year from the date of allotment of units
Benchmark:
BSE100
*In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged byThe Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to theAMFI registered Distributors basedon the investors' assessment of various factors including the service rendered by theDistributor.
Disclaimers
The views expressed herein constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. This information is meant for general reading purposes only and is not meant to serve as a professional guide for the readers. Certain factual and statistical (both historical and projected) industry and market data and other information was obtained by RCAM from independent, third-party sources that it deems to be reliable, some of which have been cited above. However,
RCAM has not independently verified any of such data or other information, or the reasonableness of the assumptions upon which such data and other information was based, and there can be no assurance as to the accuracy of such data and other information. Further, many of the statements and assertions contained in these materials reflect the belief of RCAM, which belief may be based in whole or in part on such data and other information. The Sponsor, the Investment Manager, the Trustee or any of their respective directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and opinions given are fair and reasonable. This information is not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Readers are advised to seek independent professional advice, verify the contents and arrive at an informed investment decision before making any investments.
46 Dayananda Sagar Business School
None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this material. The Sponsor, the Investment Manager, the Trustee, any of their respective directors, employees including the fund managers, affiliates, representatives including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies) / specific economic. Statutory Details: Reliance Mutual Fund has been constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882. Sponsor: Reliance Capital Limited. Trustee: Reliance Asset Capital Trustee Co. Limited. Investment Office of Manager: Trustee Reliance & Capital
Management 'H'
Limited (Registered
Investment
Manager:
Block,1st
Mumbai - 400 710, Maharashtra. . The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. Investment Objective: The primary investment objective of the scheme is to achieve long term growth of capital by investment in equity and equity related securities through a research based investment approach. However, there can be no assurance that the investment objective of the Scheme will be realized, as actual market movements may be at variance with anticipated trends.Terms of Issue: The NAV of the Scheme will be calculated and declared on every working day. The Scheme provides sale/ switch -in &repurchase /switch - out facility on all Business Days at NAV based prices Risk Factors: Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on the factors and forces affecting the capital markets. Reliance Growth Fund is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future prospects or returns. Past performance of
47 Dayananda Sagar Business School
the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme. The NAV of the Scheme may be affected, interalia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. For details of scheme features and for Scheme specific risk factors, please refer to the Scheme Information Document which is available at all the DISC / Distributors / www.reliancemutual.com. Please read the Scheme Information Document and Statement of Additional Information carefully before investing.
Weightage %
Federal Bank Ltd Bombay Dyeing & Manufacturing Co Ltd Gujarat Mineral Development Corp Ltd Satyam Computers Ltd. Indiabulls Financial Services Ltd United Phosphorus Ltd Max India Ltd RadicoKhaitan Ltd United Spirits Ltd Jindal Steel & Power Ltd Tata Motors Ltd Greaves Cotton Ltd Orient Paper & Industries Ltd Larsen & Toubro Ltd Jaiprakash Associates Ltd HT Media Ltd BEML Ltd Maharashtra Seamless Ltd Equity Less Than 1% of Corpus Sub Total of Equities Derivatives, Debt, Cash and Other Receivables Grand Total
2.72 2.35 2.34 2.05 2.35 2.35 1.72 1.82 1.86 2.03 1.97 1.88 1.63 1.52 1.39 1.16 1.05 1.01 14.87 94.43 5.57 100.00
Equity Strides Arcolab ICICI Bank Divis Labs HCL Tech Lupin SBI Jindal Saw GSFC Ranbaxy Labs Reliance
Sector Pharmaceuticals Banking/Finance Pharmaceuticals Technology Pharmaceuticals Banking/Finance Metals & Mining Chemicals Pharmaceuticals Oil & Gas
Value (Rscr) 273.38 272.31 242.80 234.64 233.99 227.33 210.53 196.77 170.40 166.39
Asset % 4.99 4.97 4.43 4.28 4.27 4.15 3.84 3.59 3.11 3.03
Concentration
Holdings Top 5 Top 10 Sector Top 3 (%) 22.92 40.64 (%) 43.04
Sectoral Allocation
Sector Value (Rs in cr.) 920.5681 273.38 242.80 233.99 170.40 777.7425 Qty -3,686,575.00 2,364,504.00 4,341,119.00 3,475,164.00 -% 16.79 4.99 4.43 4.27 3.11 14.18
51 Dayananda Sagar Business School
Banking & Financial Services ICICI Bank State Bank of India Federal Bank Indiabulls Financial Services Information Technology HCL Technologies Infosys Financial Technologies Mahindra Satyam Metals & Mining Jindal Saw Gujarat Mineral Development Corporation Jindal Steel & Power Maharashtra Seamless Chemicals Gujarat State Fertilizers Company United Phosphorous Engineering & Capital Goods Greaves Cotton Larsen and Toubro BEML
272.31 227.33 149.19 128.91 661.9421 234.64 164.37 150.73 112.20 504.9348 210.53 128.17 111.11 55.13 325.4048 196.77 128.63 243.5998
3,027,057.00 1,052,862.00 3,327,591.00 5,594,929.00 -4,927,318.00 656,797.00 2,044,538.00 14,302,469.00 -15,906,740.00 6,892,837.00 2,366,593.00 1,649,963.00 -4,711,404.00 10,249,639.00 --
4.97 4.15 2.72 2.35 12.07 4.28 3.00 2.75 2.05 9.21 3.84 2.34 2.03 1.01 5.93 3.59 2.35 4.44
Conglomerates Bombay Dyeing and Manufacturing Company Orient Paper and Industries Food & Beverages United Spirits RadicoKhaitan Oil & Gas Reliance Industries
Automotive Tata Motors Manufacturing Max India Cement & Construction Jaiprakash Associates Media & Entertainment HT Media Cash / Call Others / Unlisted
32
Competition
Diversified Equity
HDFC Equity Fund (G) Reliance Growth Fund - RP (G) ICICI Pru Dynamic Plan (G) UTI Dividend Yield Fund (G) Reliance Equity Oppor - RP (G) Reliance RSF - Equity (G) SBI Magnum Contra Fund (G) Reliance Vision Fund - RP (G) UTI Equity Fund (G) Franklin India Prima Plus (G) Franklin (I) Flexi Cap (G) Morgan Stanley Growth (G) DSP-BR Equity Fund - RP (D) HDFC Growth Fund (G) DSP-BR Equity Fund - RP (G)
Crisil Rank
Rank2 Rank3 Rank2 Rank2 Rank1 Rank3 Rank5 Rank4 Rank1 Rank2 Rank3 Rank4 Not Rank Rank2 Rank3
3mth (%)
-3.2 -5.1 -0.5 -0.2 -0.2 -1.5 -2.3 -3.4 --0.8
6mth (%)
-0.95 -1.95 0.45 -0.55 7.55 2.55 2.25 -0.95 3.15 1.35
1yr (%)
-11.4 -10.3 -5.4 -6.7 -1.0 -10.6 -9.2 -10.8 -2.9 -5.0
3yr (%)
34.3 17.2 38.2 36.7 69.7 19.2 5.4 16.7 36.2 29.8
5yr (%)
47.0 27.9 40.4 67.3 57.2 53.6 15.3 11.9 51.4 34.2
NAV AS ON 29TH JUNE 2012 Reliance Growth Fund-Growth Plan Reliance Growth Fund-Bonus Plan Reliance Growth Fund-Dividend Plan Reliance Growth Fund-Institutional Growth Reliance Growth Fund-InstitutionalDividend
DIVIDEND HISTORY
Record Date Rate (Re/Unit) Cum Dividend NAV 21-Mar-00 18-Feb-03 18-Jul-03 9-Oct-03 18-Dec-03 12-Mar-04 19-Oct-04 24-Dec-04 29-Mar-05 19-Dec-05 29-Mar-06 30-Oct-06 12-Mar-07 17-Aug-07 19-Mar-08 20-Mar-09 31-Oct-09 30-Mar-10 24-Mar-11 23-Mar-12 10.00 2.00 3.00 3.00 6.00 7.50 3.00 2.50 5.00 3.00 7.50 2.50 7.50 3.50 6.50 2.00 5.00 2.50 4.00 2.00 40.89 22.61 27.96 34.67 41.1 34.67 33.61 37.34 36.21 50.83 57.77 55.58 54.09 54.72 54.53 29.72 53.40 56.29 53.76 48.98 *Ex- Dividend NAV 30.90 20.67 24.47 31.80 35.28 27.17 30.37 34.91 31.80 47.63 50.90 53.08 47.16 52.04 47.42 28.60 46.98 53.84 50.61 46.35
Past performance may or may not be sustained in future; Dividend distribution is subject to availability & adequacy ofdistributable surplus. The Mutual Fund is not assuring that itwill make periodical dividend distributions, though it has everyintention of doing so. After the payment of dividend, the per unitNAV falls to the extent of the dividend payout and distributiontaxes, if any. Performance of dividend plan/option would be netof applicable statutory levy, if any Face value of Rs.10.
* NAV on the 1st transaction day after Record Date, whichincludes the mark to market impact also.
NAV as at June 29, 2012 (Rs.) Performance of Reliance Growth Fund - Retail Plan - Growth Option as on 29/06/2012
Date NAV Scheme Benchmark Additional Returns #(%) Benchmark Returns ##(%) Scheme (Rs) Benchmark # (Rs)
421.8321
Additional Benchmark
## (Rs)
Since inception till June29,2012 10.0000 June 29, 2011 to June 29, 2012 June 29, 2010 to June 29, 2011 June 29, 2009 to June 29, 2010 447.6087 456.683 332.5021
421,832
55,570
48,439
N.A.
Since Inception Date - 08/10/1995 # Benchmark - BSE 100 ## Additional Benchmark BSE SENSEX
Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Since inception returns (wherever provided) is computed on Compounded Annualized Growth Returns (CAGR) basis. For Scheme(s)which has completed more than 3 years, point to point returns for twelve month periods for last 3 years is provided basis the last day of thecalendar quarter and are computed on absolute basis. In case the scheme(s) which is in existence for more than 1 year but less than 3 years point to point returns is provided for as many period as possible, such period being counted from the last day of the calendar quarter and arecomputed on absolute
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basis. Further (wherever applicable), Returns for 7 days, 15 days and 30 days are computed on a simple annualized basis Performance of dividend option would be Net of Dividend distribution tax, if any. Since inception returns are based on first declared NAV Faceof value of scheme is Rs.10/- per unit. Face of Value of Reliance Money Manager Fund is Rs.1000/per unit. Face value of Reliance GoldExchange Traded Fund is Rs.100 per unit. In case, the start/end date of the concerned period is non-business day (NBD), the NAV of the previousdate is considered for computation of returns.
CONCLUSION
CONCLUSION
Mutual Fund investment is better than other raising fund. Reliance Mutual Fund have good returns in investment Reliance Vision Fund. A good brand is always welcomed over here people are more aware and conscious for the brand so they go for they are ready to spend some extra bucks for the quality. At last all can be concluded by that Reliance Money is still growing industry in India and is still exploring its potential and prospects in here. The expectations of the customers are regularly increasing because of the increasing competition and emergence of global market. In such conditions it becomes very necessary for a company to fulfill all the expectations of the customers and give them a delightful experience. Though reliance money is working very hard in order to do so but there is a gap between the expectations and the experiences of the customers which is widening regularly. This gap has emerged because of the sales oriented focus of reliance mutual fund. In order to increase the sales figures, the company has somewhere ignored the service delivery and left the customer on his own. In order to fill this gap, company needs to customize its services as it is dealing into financial instruments. These financial instruments are risky and it is very essential to make the customer feel that you are taking care of his money. This can be done only if all the services are customized and the system is made transparent for the customer as well as for the employees.
LIMITATION
The time constraint was one of the major problems. People are reluctant towards giving response and take it as a waste of time. Taking appointments was very tough as people were not ready to give their time for a survey. Cold callings were not entertained everywhere and thus we were not able to meet all the classification of customers. Because of the temporary fluctuations in the market it was a tough time talking to the people regarding investments. People were reluctant towards the products of reliance because of a general perception that reliance always comes with low price but always has hidden charges. Language was a hurdle while talking to many of the local people. Though these limitations were there but because of the support of the people I have surveyed and the experience I have gained while preparing for the survey presentations of my college, I was able to complete the survey and prepare my project report much before the deadline.
QUESTIONNAIRE A study of preferences of the investors for investment in mutual funds. 1.What kind of investments you prefer most? Pl tick (). All applicable a. Saving account d. Mutual Funde. g. Gold/ Silver b. Fixed deposits c. Post Office-NSC, h. Real Estate c. Insurance f. Shares/Debentures I. PPF j. PF
2. While investing your money, which factor you prefermost? Any one a.Liquidity b. Low Risk c.High Return d.Company reputation
3. Have you ever invested your money in mutual fund? a.Yes If yes, a)Where do you find yourself as a mutual fund investor? Totally ignorant [ ] Partial knowledge of mutual funds [ ] Aware only of any specific scheme in which you invested [ ] Fully aware [ ] b)In which kind of mutual you would like to invest? Public [ ] Private [ ] b.No
c.) how do you come to know about Mutual Fund? a. Advertisement b.Peer Group c. Banks d. Financial Advisors
d)Which mutual fund scheme have you used? a.Open-ended b.Close-ended c.Liquid fund d.Mid- Cap e.Growth fund f.Regular Income fund
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g.Long-Cap Sector fund If no, a)If not invested in Mutual Fund then why? Not aware of MF Higher risk Not any specific reason
4. which feature of the mutual funds allure you most? Diversification Better return and safety Reduction in risk and transaction cost Regular Income Tax benef it [] [] [] [] []
5. In which Mutual Fund you have invested? Please tick (). All applicable. a. SBIMF b. UTI f. JM mutual fund c. HDFC g. Other. Specify d. Reliance e. ICICI prudential funds
6. When you invest in Mutual Funds which mode of investment will you prefer? a. One Time Investment b. Systematic Investment Plan (SIP)
7. Where from you purchase mutual funds? Directly from the AMCs [ ] Brokers only [ ] Brokers/ sub-brokers [ ] Other sources [ ] 8. Which AMC will you prefer to invest? Assets Management Co.a. SBIMF b. UTI c. Relianced. HDFC e. Kotak f. ICICI g. JM finance Which sector are you investing in mutual fund sector? i.General ii.Oil and petroleum iii.Gold fundi v.Diversified equity fund
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10. How would you like to receive the returns every year? a. Dividend payout b. Dividend re-investment c. Growth in NAV 11.Personal Details: (a). Name:(b). Add: Contact No:(c). Age:(d). Qualification:(e). Occupation. Pl tick () Govt. Sec Pvt. Sec Business Agriculture Others (g). What is your monthly family income approximately? Pl tick (). Up toRs.10,000 Rs. 10,001 to15000 Rs. 15,001 to20,000 Rs. 20,001 to30,000 Rs. 30,001 andabove Graduation/PG Under Graduate Others
BIBLIOGRAPHY News Paper Business Standard Economic Times Green Line The Financial Times