Differernt Mutual Fund Scheme for Hnis

7/30/2019 Differernt Mutual Fund Scheme for Hnis

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ON

EVALUATE DIFFERENT MUTUAL FUND SCHEME

FOR HNIS

TABLE OF CONTENTS

Cover page

Title page

Authorization

Acknowledgements

1. Company Profile

2. Introduction to Mutual Funds


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2.1 Benefits

3.Analysis

4.Conclusion

5. Reference

6. Apendix

CHAPTER 2: RELIANCE MUTUAL FUND

2.1 The Sponsors: Reliance Capital Limited

Reliance Capital Asset Management Ltd. is a wholly owned subsidiary of Reliance

Capital Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital

Asset Management Ltd is held by Reliance Capital Ltd.

Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Ltd (RCL).


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Reliance Capital is Indias fastest growing private sector financial services company.

Ranking among the top 3 private sector banking and finance companies in India,

with a shareholder base of over 1.3 million. Reliance Capital has interests in asset

management and mutual funds, life and general insurance, private equity and

proprietary investments, stock broking and other financial services with a net worth

in excess of Rs. 5,262 crore (as of March 31, 2007)

Particulars

(Rs.in

crores)crores)

2005-06 2004-05 2003-04 2002-03

Total Income 652.02 295.69 356.79 458.78

Profit Before Tax 550.61 111.21 105.79 102.63

Profit After Tax 537.61 105.81 105.79 102.63

Reserves & Surplus 3849.58 1310.08 1271.84 1208.5

Net Worth 4122.46 1437.92 1399.81 1336.33

Earnings per Share

(Rs.)

29.74

(Basic +

Diluted)

8.31

(Basic +

Diluted)

8.31

(Basic +

Diluted)

8.06

(Basic +

Diluted)

Book Value per

Share (Rs.)

112.95 112.95 109.96 104.54

Dividend (%) 30% 30% 29% 29%

Paid up Equity

Capital

223.40 127.84 127.84 127.83

Reliance Capital Ltd. has contributed Rupees One Lac as the initial contribution to

the corpus for the setting up of the Mutual Fund. Reliance Capital Ltd. is responsible


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for discharging its functions and responsibilities towards the Fund in accordance

with the Securities and Exchange Board of India (SEBI) Regulations.

The Sponsor is not responsible or liable for any loss resulting from the operation of

the Scheme beyond the contribution of an amount of Rupees one Lac made by

them towards the initial corpus for setting up the Fund and such other accretions

and additions to the corpus.

2.2 Reliance Capital Asset Management Limited

Reliance Capital Asset Management Limited (RCAM), a company registered under the

Companies Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund.

Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital

Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management

Limited is held by Reliance Capital Limited.

Reliance Capital Asset Management Limited was approved as the Asset Management Company

for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995.

The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM

dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual Funds)

Regulations, 1996. Pursuant to this IMA, RCAM is authorized to act as Investment Manager of

Reliance Mutual Fund.

The networth of the Asset Management Company including preference shares as on March 31,

2005 is Rs.30.13 crores.

2.3 Reliance Mutual Fund


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Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Assets

Under Management (AUM) of Rs. 48,828 crore (AUM as on 30th Apr 2007) and an

investor base of over 3.1 million.

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one

of the fastest growing mutual funds in the country. RMF offers investors a well-

rounded portfolio of products to meet varying investor requirements and has

presence in 115 cities across the country.

Reliance Mutual Fund constantly endeavors to launch innovative products and

customer service initiatives to increase value to investors.

Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management

Ltd., a wholly owned subsidiary of Reliance Capital Ltd.

Reliance Capital Ltd. is one of Indias 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.

Sponsor: Reliance Capital Limited.

Asset Management Company: Reliance Capital Asset Management Ltd.


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Trustee: Reliance Capital Trustee Co. Limited.

Transfer Agent/Registrar: Reliance Computer Share Private Limited.

Custodian: Deutsche Bank AG

Auditors: Haribhakti & Co. (statutory auditors),

Price Waterhouse Coopers (internal auditors),

C.C.Chokshi & Co. (auditors to AMC),

M/s. Malpani & Associates (auditors to trustee)

Investment Manager: Reliance Capital Asset Management

Limited. The Sponsor, the Trustee and the

Investment Manager are incorporated under

the Companies Act 1956.

Vision


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Reliance Capital Asset Management Ltd. has a vision of being a leading player in the

Mutual Fund business and has achieved significant success and visibility in the

market.

However, an imperative part of growth and visibility is adherence to Good Conduct

in the marketplace. At Reliance Capital Asset Management Ltd., the implementation

and observance of ethical processes and policies has helped us in standing up to

the scrutiny of our domestic and international investors.

Management

The management at Reliance Capital Asset Management Ltd. Is committed to good

Corporate Governance, which includes transparency and timely dissemination of

information to its investors and unit holders. The Reliance Capital Asset

Management Limited Board is a professional body, including well-experienced and

knowledgeable Independent Directors. Regular Audit Committee meetings are

conducted to review the operations and performance of the company.

Reliance Capital Ltd. has contributed Rupees One Lac as the initial contribution to

the corpus for the setting up of the Mutual Fund. Reliance Capital Ltd. is responsible

for discharging its functions and responsibilities towards the Fund in accordance

with the Securities and Exchange Board of India (SEBI) Regulations.

The Sponsor is not responsible or liable for any loss resulting from the operation of

the Scheme beyond the contribution of an amount of Rupees one Lac made by


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them towards the initial corpus for setting up the Fund and such other accretions

and additions to the corpus.

2.3(1) Trustees

The trustees of Reliance Mutual Fund are:

Reliance Capital Trustee Co. Limited (RCTCL)

2.3(2) The Custodian

Deutsche Bank, AG .The Trustee has appointed Deutsche Bank, AG located at

Kodak House, Ground Floor, 222 Dr. D.N.Road, Mumbai-400 001, as the Custodian

of the securities that are bought and sold under the Scheme. A Custody Agreement

has been entered with Deutsche Bank in accordance with SEBI Regulations. The

Custodian is approved by SEBI under registration no. IN/CUS/003 to act as

Custodian for the Fund.

Deutsche Bank AG, the Custodian shall, inter alia:

Provide post-trading and custodial services to the Mutual Fund.

Keep Securities and other instruments belonging to the Scheme in safe

custody.

Ensure smooth inflow/outflow of securities and such other instruments as and

when necessary, in the best interests of the unit holders.

Ensure that the benefits due to the holdings of the Mutual Fund are recovered

and

Be responsible for loss of or damage to the securities due to negligence on its

part on the part of its approved agents.


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2.3(3) The Registrar

Reliance Capital Asset Management Limited has appointed M/s. Reliance

Computershare Pvt. Limited to act as the Registrar and Transfer Agent to the

Schemes of Reliance Mutual Fund. M/s. Reliance Computershare Pvt. Limited (KCL)having their office at No.21, Avenue 4, Street No.1, Adjacent to Rainbow Hospital,

Banjara Hills, Hyderabad - 500 034, is a Registrar and Transfer Agent registered

with SEBI under registration no. INR000000221.

Reliance Capital Asset Management Ltd. and the Trustee have satisfied themselves,

after undertaking appropriate due diligence measures, that they can provide the

services required and have adequate facilities, including systems facilities and back

up, to do so. The Trustee has also laid down broad parameters for supervision of the

Registrar. As Registrar to the Schemes, KCL will accept and process investor'sapplications, handle communications with investors, perform data entry services,

dispatch Account Statements and also perform such other functions as agreed, on

an ongoing basis.

The Registrar is responsible for carrying out diligently the functions of a Registrar

and Transfer Agent and will be paid fees as set out in the agreement entered into

with it and as per any modification made thereof from time to time.

2.4 Management Team

Board of Directors

Amitabh Chaturvedi

Kanu Doshi

Manu Chadha

Sushil Tripathi
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Management Team

President

Vikrant Gugnani

Chief Investment Officer

K.Rajagopal

Head Equity Investments

Madhusudan Kela

Equity Fund Managers

Equity Fund Manager Sunil B. Singhania

Equity Fund Manager Ashwani Kumar

Equity Fund Manager Shailesh Raj Bhan

Debt Fund Managers

Head Fixed Income Amitabh Mohanty

Debt Fund Manager Amit Tripathi

Debt Fund Manager Prashant Pimple

Head Of Departments

Brand and Communication Abraham Alapatt

Finance and Accounts Amit Bapna

Human Resource Development Rajesh Derhgawen

Information Technology Vinay Nigudkar

Legal & Compliance Balkrishna Kini

Risk Management Lav Chaturvedi

Operations & Settlement Geeta Chandran

Infrastructure & Administration Pradeep Andrade
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R&T operations Prashanth D Pereira

Sales and Distribution Sundeep Sikka

Zonal Heads

Northern Zone Head Aashwin Dugal

Western Zone Head Devendra Daga

Southern Zone Head Gurbir Chopra
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2.5 Different Schemes Offered By Reliance Mutual Fund

Debt Schemes

Reliance Income Fund

The primary objective of the scheme is to generate optimal returns consistent

with moderate levels of risk. This income may be complemented by capital

appreciation of the portfolio. Accordingly, investments shall predominantly be made

in Debt & Money market instruments. The benchmark for the scheme is Crisil

Composite Bond Fund Index.

FUND PERFORMANCE

Period % change in NAV % change in Index

1 Year 5.27 3.68

3 Years 4.36 2.83

5 Years 6.76 5.40

Since Inception 9.48 NA

Reliance Monthly Income Plan

The primary investment objective of the scheme is to generate regular

income in order to make regular dividend payments to unitholders and the

secondary objective is growth of capital. The benchmark for the scheme is Crisil MIP

Blended Index.

FUND PERFORMANCE


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1 Year 6.46 8.88

3 Years 10.74 8.19

Since Inception 9.51 6.38


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Reliance Medium Term Fund

The primary investment objective of the scheme is to generate regular

income in order ro make regular dividend payments to unitholders and the

secondary objective is growth of capital. The benchmark for the scheme is Crisil

Short Term Bond Fund Index.

FUND PERFORMANCE


1 Year 6.21 6.10

3 Years 3.73 4.675 Years 5.22 5.36


Reliance Liquid Fund (Treasury Plan)

The primary investment objectiveof the scheme is to generate optimal

returns consistent with moderate levels of risk and high liquidity. Accordingly,

investments shall predominantly be made in Debt and Money market instruments.

The benchmark for the scheme is Crisil Liquid Fund Index.

FUND PERFORMANCE


1 Year 7.15 7.18

3 Years 5.66 5.58

5 Years 5.71 5.32



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Reliance Liquid Fund (Cash Plan)

The primary investment objectiveof the scheme is to generate optimal

returns consistent with moderate levels of risk and high liquidity. Accordingly,

investments shall predominantly be made in Debt and Money market instruments.


FUND PERFORMANCE


1 Year 6.94 7.18

3 Years 5.49 5.58

5 Years 5.19 5.32


Reliance Short Term Fund

The primary objective of the scheme is to generate stable returns for

investors with a short term investment horizon by investing in fixed income

securities of a short term maturity. The benchmark for the scheme is Crisil Liquid

Fund Index.

FUND PERFORMANCE


1 Year 8.01 7.18

3 Years 6.41 5.58


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Reliance Gilt Securities Fund (Short Term Plan)

The primary objective of the scheme is to generate optimal credit risk-free

returns by investing in a portfolio of securities issued and guaranteed by the Central

Government and State Government. The benchmark for the scheme is I - Sec Si -

Bex.


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FUND PERFORMANCE


1 Year 4.31 6.84

3 Years 3.19 5.17


Reliance Gilt Securities Fund (Long Term Plan)

The primary objective of the scheme is to generate optimal credit risk-free

returns by investing in a portfolio of securities issued and guaranteed by the Central

Government and State Government. The benchmark for the scheme is I - Sec Li -

Bex.

FUND PERFORMANCE


1 Year 6.64 6.64

3 Years 5.54 3.13


Reliance Floating Rate Fund

The primary objective of the scheme is to generate regular income through

investments in a portfolio comprising substantially of Floating Rate Debt Securities (

including floating rate securitized debt and Money market instruments and Fixed

Rate debt instruments swapped for floating rate returns.) The scheme shall also

invest in Fixed rate debt securities (including fixed rate securitized debt, money


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market instruments and floating rate debt instruments swapped for fixed returns).


FUND PERFORMANCE


1 Year 6.11 5.52


Reliance NRI Income Fund

The primary investment objective of the scheme is to generate optimal

returns consistent with moderate levels of risks. This income may be complimented

by capital appreciation of the portfolio. Accordingly, investments shall

predominantly be made in debt instruments. The benchmark for the scheme is Cirsil

Composite Bond Fund Index.

FUND PERFORMANCE


1 Year 7.15 3.68


Reliance Regular Savings Fund (Debt Option)

The primary investment objective of this option is to generate optimal returns

consistent with moderate level of risk. This income may be complemented by the

capital appreciation of the portfolio. Accordingly investments shall predominantly be


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made in debt and money market instruments. The benchmark for the scheme is

Crisil Composite Bond Fund Index.

FUND PERFORMANCE


1 Year 3.22 3.68


Reliance Regular Savings Fund (Equity Option)

The primary investment objective of this option is to seek capital appreciation

and / or to generate consistent returns by actively investing in equity / equity

related instruments. The benchmark for the scheme is BSE 100 Index.

FUND PERFORMANCE


1 Year 40.90 38.69


Reliance Regular Savings Fund (Hybrid Option)

The primary investment objective of this option is to generate consistent

return by investing a major portion in debt and money market securities and a small

portion in equity and equity related instruments. The benchmark for the scheme is

Crisil MIP Blended Index.


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FUND PERFORMANCE


1 Year 14.40 9.14


Reliance Liquidity Fund


returns consistent with moderate levels of risks. Accordingly, investments shall

predominantly be made in debt instruments.

The benchmark for the scheme is Crisil Liquid Fund Index. The fund has given

a weighted average return of 4.57% since inception date 16/06/2005.

FUND PERFORMANCE


1 Year 7.96 7.18


Reliance Liquid Plus Fund

The investment objective of the scheme is to generate optimal returns

consistent with moderate levels of risk and liquidity by investing in debt securities

and money market securities. The benchmark for the scheme is Crisil Liquid Fund

Index.


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FUND PERFORMANCE



EQUITY FUNDS

Reliance Growth Fund

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. The benchmark for the scheme is BSE 100

Index.

FUND PERFORMANCE


1 Year 33.48 38.69

3 Years 62.23 43.54

5 Years 61.33 36.12


Reliance Vision Fund


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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. The benchmark for the scheme is BSE 100

Index.

FUND PERFORMANCE


1 Year 41.01 38.69

3 Years 54.30 43,54

5 Years 55.49 36.12


Reliance NRI Equity Fund


returns by investing in equity or equity related instruments primarily drawn from

companies in the BSE 200 Index. The benchmark for the scheme is BSE 200 Index.

FUND PERFORMANCE


1 Year 46.49 36.92


Reliance Equity Opportunities Fund


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The primary investment objective of the scheme is to seek to generate

capital appreciation and provide long term growth opportunities by investing in a

portfolio constituted of equity and equity related securities and the secondary

objective is to generate consistent returns by investing in debt and money market

securities. The benchmark for the scheme is BSE 100 Index.

FUND PERFORMANCE


1 Year 33.81 38.69


Reliance Index Fund (Nifty Plan)

The objective of this plan is to replicate the composition of the Nifty with a

view to endeavor to generate returns which could approximately be the same as

that of the Nifty. The benchmark of the scheme is S & P CNX Nifty Index.

FUND PERFORMANCE


1 Year 26.00 39.88


Reliance Index Fund (Sensex Plan)

The objective of this plan is to replicate the composition of the Sensex with a

view to endeavor to generate returns which could approximately be the same as

that of the Sensex. The benchmark of the scheme is BSE Sensex.


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FUND PERFORMANCE


1 Year 34.84 39.87


Reliance Tax Saver Fund (ELSS)

The primary objective of the scheme is to generate long term capital

appreciation from a portfolio that is invested predominantly in equity and equity

related instruments. The benchmark for the scheme is BSE 100 Index.

FUND PERFORMANCE


1 Year 23.37 38.69


Reliance Equity Fund

The primary objective of the scheme is to generate capital appreciation and

provide long term growth opportunities by investing in a portfolio constituted of

equity and equity related securities of top 100 companies by market capitalization

and of companies which are available in the derivatives segment from time to time

and the secondary objective is to generate consistent returns by investing in debt

and money market securities. The benchmark for the scheme is S & P CNX Nifty.

FUND PERFORMANCE



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1 Year 30.21 39.88


Reliance Long Term Equity Fund

The primary investment objective of the scheme is to seek to generate long

term capital appreciation and provide long term growth opportunities by investing

in a portfolio constituted of equity and equity related securities and derivatives and

the secondary objective is to generate consistent returns by investing in debt and

money market securities. The benchmark for the scheme is BSE 200 Index.

SECTORAL FUNDS

Reliance Banking Fund


continuous returns by actively investing in equity and equity related instruments or

fixed income securities of banks. The benchmark for the scheme is S & P CNX Banks

Index.


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FUND PERFORMANCE


1 Year 47.05 55.27

3 Years 35.95 40.94


Reliance Diversified Power Sector Funds



fixed income securities of power and other associated companies. The benchmark

for the scheme is India Power Index.

FUND PERFORMANCE


1 Year 56.42 43.43

3 Years 63.28 49.43


Reliance Pharma Fund



fixed income securities of pharma and associated companies. The benchmark for

the scheme is BSE Health Care Index.


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FUND PERFORMANCE


1 Year 35.20 13.40


RELIANCE INFRASTRUCTURE FUND:-.The new fund offers two plans

Retail and Institutional. The minimum investment in the fund would be Rs.

5,000 and in multiples of Re. 1 thereafter for the Retail Plan and Rs. 5

crore and in multiples of Re 1 thereafter for the Institutional Plan.

Reliance Infrastructure Fund will invest at least 65 per cent of its assets in

engineering, cement and power stocks as well as banks, whereas the

balance will be invested in debt and money markets.

Here is a list of sectors that the fund may invest in (from their

prospectus): At first glance it may occur to you that the Reliance mutual

fund will invest most of its assets in Airport, then Banks, then Cement and

so on (which is what I felt), but this is not true. This is just a list of

indicative sectors and is not in any particular order.

Airports

Banks, Financial Institutions and Term Lending institutions.

Cement

Coal

Construction

Electrical and Electric Component

Engineering

Energy

Industry Capital Goods


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Metals and Minerals

Ports

Power and Power equipment

Road and Railways

Telecom

Transportation

Urban Infrastructure

Mining

Aluminum

Reliance Infrastructure Fund Manager

Why to Consider Infrastructure Mutual Fund Now?

Stable and stronger government - easy policy making

o The earlier coalition government had limited scope to thrust

infrastructure related reforms given its constitution. However stability of

the new government should ease policy making.

Sharp government focus on infrastructure - better implementation

o The government has indicated that infrastructure is a crucial growth

area and hence one can expect better project implementation than what

was witnessed in the past. The UPA in its manifesto seeks to increase

public investment into infrastructure and plans to increase power capacity

by 12,000 - 15,000 MW per year.

Key to reviving domestic growth

o The government has recognized that infrastructure spend might aid the

economy to ride overthe ongoing slowdown while even insulating the

economy from the adverse impact of the financial meltdown.

Entry Load of Reliance Infrastructure Mutual Fund

Subscription below Rs. 2 Crores: 2.25%

Between Rs. 2 and 5 Crores: 1.25%

Above Rs. 5 Crores: Nil


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Exit Load of Reliance Infrastructure Mutual Fund

1% if redeemed within a year of allotment

Nil if redeemed after a year of allotment

Nil if subscription is more than Rs. 5 crores

Minimum Application Amount for Retail Investors

The minimum investment needed is Rs.5000 and if you want to invest

additional money then you must invest a minimum of Rs.1000.

Plans offered by Reliance Infrastructure Mutual Fund

There are two types of plans in this fund:

Growth Plan and Dividend Plan

The growth plan is meant for people who are not looking for regular

dividend payouts from the mutual fund and the income from their funds

will be reinvested in the fund. The Dividend plan on the other hand will

give you dividend income (when the fund declares dividends). There is a

dividend reinvestment plan also where the fund will reinvest your

dividends to buy more units of the mutual fund.

Tax Rates

The dividends are tax free in the hands of resident Indian investors.

Similarly, there is no tax on long term capital gains. There is a 15% tax on

short term capital gains of the scheme

Following the result of the 2009 general elections the stock market has

gone up substantially in India. Over the last three months the Sensex has

jumped by 80%. Despite this rally there are many opportunities that

remain in the stock market. Billions of dollars have been poured into the

Indian markets by foreign institutional investors over the last few weeks.

Not surprisingly the dollar has dipped to around 47 rupees after hitting a

high of 52+ earlier this year. Indications are that there is a lot of money

waiting to be invested in Indian stocks. The recent run-up is very difficult


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for many hedge funds, foreign investors and mutual funds to buy stocks at

reasonable price. Many mutual funds like Morgan Stanley and investment

stalwarts like Mark Mobius have talked of very high targets for the Sensex

over the next year or two. The targets spoken about by significantly from

19,500 to as high as 25,000. In this scenario mutual fund houses like

reliance mutual fund are better equipped as compared to the retail

investor to make money from investing in stocks.

Until March this year most mutual funds had reported a poor performance.

Since then there have been increasing gains in the NAVs of most major

mutual funds. From the signs of it, then next year to two years will

continue to see a lot of money flowing in the Indian stock markets. So far

only between 5 to 10% of the investment in the dust. Infrastructure

remains a key sector for investment.

Reliance infrastructure fund comes at an opportune time as the NFO will

close barely a week before the Indian budget is announced. Indications

are that reliance will mop up anywhere between 4000 and 6000 crores

with this NFO. Most of the earliest mutual fund schemes of reliance have

outperformed many other mutual fund schemes. Reliance mutual fund

manages a corpus of 100,000 crores across all its mutual fund schemes.

While many investors invest in new fund offers because they are priced at

10 rupees instead of a higher NAV, there are several other more rational

reasons reliance infrastructure fund may be a good pick. For one the

infrastructure boom story is far from over. A lot of new money is expected

to come in over the next one year from FIIs, mutual funds, financial

institutions and even local HNIs who haven't been able to push in all their

money yet. Given their track record, financial clout and management,

reliance mutual fund is well-equipped to manage your money.

While the last month has seen the stock market go up substantially, it

cannot go up all the time and occasionally hiccups can be expected. If you

would like to ride the infrastructure boom and are willing to be patient

with your investments, the reliance infrastructure fund may be a good

option to consider.


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Reliance Media and Entertainment Fund



fixed income securities of media and entertainment and other associated

companies. The benchmark for the scheme is S & P CNX Media and Entertainment

Index.

FUND PERFORMANCE


1 Year 57.95 83.65


2.6 Reliance Mutual Fund: An Overview

Reliance Mutual Fund has been awarded as Indias Most Trusted Mutual Fund

Brand by Economic Times Brand Equity survey by AC Nielsen ORG-MARG

2005

Reliance Mutual Fund is the of the Largest Private Sector AMC in the country

First Mutual Fund in the World to launch Online Redemption through ATMs/

PoS

o Investors can redeem their Mutual Fund Units using any VISA ATM/ PoS

across the Globe on 24 X 7 bases.

Healthy Debt Equity mix of 50:50 with largest Equity Fund corpus in the

Industry as on September 06


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Reliance Equity Fund NFO had created history for having the highest

collection ever among domestic mutual funds, by raising a record Rs

5723.26 crores & 9.24 lakh applications- Surpassed UTIs 14-year-old record

Some of our Funds have been awarded both by International as well as

Domestic Rating Agencies in terms of their Performance and Consistency

Current Competitive Analysis

Amt. in Rs. Crs

Industry Players AUM as

on Mar

05

AUM as

on

Mar06

AUM as

on

Jan07

Growth

(Mar 05-

Mar 06)

YTD

Annualise

d Growth

Reliance 9,543 24,669 39,020 159% 70%

UTI 20,740 29,519 37,535 55% 33%

Pru ICICI 15,201 23,502 34,746 42% 57%

HDFC 15,010 21,550 31,425 44% 55%

Franklin

Templeton

15,354 17,827 23,907 16% 41%

Birla 10,373 15,018 21,190 45% 49%

Industry 1,49,6002,31,715 3,39,66355% 56%


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0

5000

10000

15000

20000

25000

30000

35000

40000

Mar-06 Jun-06 Sep-06 Dec-06

0

50000

100000

150000

200000

250000

300000

350000

400000

Reliance Mutual Fund Indus try


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Current Competitive Analysis

RMF Vs Industry QOQ Growth

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Q1 Q2 Q3Industry RMF

Asset Class Wise - QOQ Growth


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0

5000

10000

15000

20000

25000

Mar 06 Jun-06 Sep-06 Dec-06Equity Debt

Current Investor Base

0

100

200

300

400

500

600

700

Debt Liquid** Equity

* The base period is Mar 05 which is taken as 100

Mar 05*

Mar 06

Jan 07


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Asset

Class

# of Folios

as on Mar

05

# of Folios

as on Mar

06

%

Growth

# of Folios

as on Jan

07

YTD %

Growth

Debt 30,205 34,138 13% 54,519 59.7%

Liquid*

*

5,616 12,547 123% 12,841 2.3%

Equity 4,40,768 20,50,369 365% 30,08,254 46.7%

Total 4,76,840 20,96,952 340% 30,75,614 46.6%

**Liquid category Includes Reliance Floating Rate Fund

Footprint

Mar - 06 Jan - 07 FY 06-07

Branches 30 46 50

FPC 20 22 25

Sub Total (A) 49 67 75

RRs 08 14 20

BFs 24 29 30

Sub Total (B) 32 43 50

Total 82 110 125


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Expansion plan into Tier-III & Tier IV cities

Expansion route

o Aggressively ramp up Resident Representatives (RRs) platforms formarket expansion

o Convert RRs into Branches on achieving Rs. 20 crs of Equity AUMs per

location

Branch breakeven target at 12 months & payback in 24 months

TYPES OF MUTUAL FUNDS


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A Mutual Fund may float several schemes, which may be classified on the basis of

its structure, its investment objectives and constitution.

INVESTMENT OBJECTIVE

Schemes can be classified by way of their stated investment objective such as

growth Fund, Balanced Fund, and Income Fund etc

EQUITY ORIENTED SCHEMES

These schemes, also commonly called Growth Schemes, seek to invest a majority

of their funds in equities and a small portion in money market instruments. Such

schemes have the potential to deliver superior returns over the long term because

the market boom and depression phases get evened out over a longer time span.

However, because they invest in equities, these schemes are exposed to

fluctuations in value especially in the short-term.

SECTOR SPECIFIC

These schemes restrict their investing to one or more pre-defined sectors, e.g.

technology sector, pharmaceutical, information technology etc. Since they depend

upon the performance of select sectors only, these schemes are inherently more

risky than general-purpose schemes. They are suited for informed investors who

wish to take a view and risk on the concerned sector.

SPECIAL SCHEMES

INDEX SCHEMES

The primary purpose of an Index is to serve as a measure of the performance of the

market as a whole, or a specific sector of the market. An Index also serves as a


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relevant benchmark to evaluate the performance of mutual funds. Some investors

are interested in investing in the market in general rather than investing in any

specific fund. Such investors are happy to receive the returns posted by the

markets. As it is not practical to invest in each and every stock in the market in

proportion to its size, these investors are comfortable investing in a fund that they

believe is a good representative of the entire market. Index Funds are launched and

managed for such investors.

An example to such a fund is the HDFC Index Fund.

TAX SAVING SCHEMES

Investors (individuals and Hindu Undivided Families (HUFs)) are being

encouraged to invest in equity markets through Equity Linked Savings Scheme

(ELSS) by offering them a tax rebate. Units purchased cannot be assigned /

transferred/ pledged / redeemed / switched out until completion of 3 years from

the date of allotment of the respective Units.

The Scheme is subject to Securities & Exchange Board of India (Mutual Funds)

Regulations, 1996 and the notifications issued by the Ministry of Finance

(Department of Economic Affairs), Government of India regarding ELSS.

REAL ESTATE FUNDS

Specialized real estate funds would invest in real estates directly, or may fund real

estate developers or lend to them directly or buy shares of housing finance

companies or may even buy their securitised assets.

DEBT BASED SCHEMES


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These schemes, also commonly called Income Schemes, invest in debt securities

such as corporate bonds, debentures and government securities. The prices of these

schemes tend to be more stable compared with equity schemes and most of the

returns to the investors are generated through dividends or steady capital

appreciation. These schemes are ideal for conservative investors or those not in a

position to take higher equity risks, such as retired individuals. However, as

compared to the money market schemes they do have a higher price fluctuation

risk and compared to a Gilt fund they have a higher credit risk.

INCOME SCHEMES

These schemes invest in money markets, bonds and debentures of corporates with

medium and long-term maturities. These schemes primarily target current income

instead of capital appreciation. They therefore distribute a substantial part of their

distributable surplus to the investor by way of dividend distribution. Such schemes

usually declare quarterly dividends and are suitable for conservative investors who

have medium to long-term investment horizon and are looking for regular income

through dividend or steady capital appreciation.

HDFC Income Fund, HDFC Short Term Plan and HDFC Fixed Investment Plans

are examples of bond schemes.

LIQUID INCOMES SCHEMES

Similar to the Income scheme but with a shorter maturity than Income schemes.

An example of this scheme is the HDFC Liquid Fund

MONEY MARKET SCHEMES

These schemes invest in short-term instruments such as commercial paper (CP),

certificates of deposit (CD), treasury bills (T-Bill) and overnight money

(Call). The schemes are the least volatile of all the types of schemes because of


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their investments in money market instrument with short-term maturities. These

schemes have become popular with institutional investors and high net worth

individuals having short-term surplus investible funds.

GILT FUNDS

This scheme primarily invests in Government Debt. Hence, the investor usually

does not have to worry about credit risk since Government Debt is generally credit

risk free.

HDFC Gilt Fund is an example of such a scheme.

HYBRID SCHEMES

These schemes are commonly known as balanced schemes. These schemes invest

in both equities as well as debt. By investing in a mix of this nature, balanced

schemes seek to attain the objective of income and moderate capital appreciation

and are ideal for investors with a conservative, long-term orientation.

HDFC Balanced Fund and HDFC Childrens Gift Fund are examples of hybrid

schemes.

CONSTITUTION

Schemes can be classified as Closed-ended or Open-ended depending upon

whether they give the investor the option to redeem at any time (open-ended) or

whether the investor has to wait till maturity of the scheme.

OPEN-ENDED SCHEMES

The units offered by these schemes are available for sale and repurchase on any

business day at NAV based prices. Hence, the unit capital of the schemes keeps

changing each day. Such schemes thus offer very high liquidity to investors and

are becoming increasingly popular in India. It is important to remember that an


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open-ended fund is NOT obliged to keep selling/issuing new units at all times, and

may stop issuing further subscription to new investors. On the other hand, an open-

ended fund rarely denies to its investor the facility to redeem existing units.

CLOSE-ENDED SCHEMES

The unit capital of a close-ended product is fixed as it makes a one-time sale of

fixed number of units. These schemes are launched with an initial public offer

(IPO) with a stated maturity period after which the units are fully redeemed at

NAV linked prices. In the interim, investors can buy or sell units on the stock

exchanges where they are listed. Unlike open-ended schemes, the unit capital in

closed-ended schemes usually remains unchanged. After an initial closed period,

the scheme may offer direct repurchase facility to the investors. Closed-ended

schemes are usually more illiquid as compared to open-ended schemes and hence

trade at a discount to the NAV. This discount tends towards the NAV closer to the

maturity date of the scheme.

INTERVAL SCHEMES

These schemes combine the features of open-ended and closed-ended schemes.

They may be traded on the stock exchange or may be open for sale or redemption

during pre-determined intervals at NAV based prices.

BY TRADING STRATEGY

This category depends on the pace at which the funds trade their securities:

ACTIVE FUNDS

These are funds that are constantly active in the market - buying and selling the

securities in their portfolio very frequently. Such funds intend to take advantage of

the cycles in the market, and the opportunities in individual securities. Technically,


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these funds are said to have a 'high portfolio turnover'.

PASSIVE FUNDS

These are the funds with low portfolio trading. They normally follow a buy and

hold strategy and do not trade their holdings very frequently.

BALANCED FUNDS

Balanced Funds are those that follow the middle path between the active and

passive fund approaches. A better option for a conservative investor than the other

two.

BY INVESTMENT STRATEGY

This category is based on the various processes by which funds examine, analyze

and then invest the securities in their portfolios. Thus:


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GROWTH FUNDS

Growth funds typically invest in well-established companies with strong earnings

potential. Normally, such stocks have high price to earning ratios (P/E).

VALUE FUNDS

Value funds, on the other hand, invest in companies that have recently fallen out of

favor but are expected to bounce back or simply put they pick stocks that are out of

favor in the market believing that their prevailing market prices do not fully reflect

their intrinsic worth.

VALUE CUM GROWTH follows a mix of the growth and value approaches.

ASSET ALLOCATION FUNDS use asset allocation as a tool to maximize returns.

Here, the fund manager attempts to earn returns by shifting between asset classes.

In doing so, he can increase exposure to debt when equity markets are down and

vice versa. Investments in this case are generally made in index heavy stocks.

TRADING FUNDS are identified with high portfolio trading. Here, the fund

specifically adopts an active trading strategy to generate returns. Since mutual

funds do not have to pay any short -term capital gains tax, it makes sense for them

to operate trading funds.

.

BY SECURITY SELECTION

The type of security that the fund invests in is what determines this particular

group:


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TOP DOWN FUNDS are those that select stocks using the top down approach,

where the fund manager first identifies the sector in which he'd like to invest and

then the potential scrips /stock within the sector.

BOTTOMS UP FUNDS use the bottom up approach to investing, where the fund

manager focuses on the scrips, irrespective of what sector they come under.

SMALL CAP FUNDS focus on small cap stocks for their investment portfolio.

MID-CAP FUNDS invest in mid cap scrips.

LARGE CAP FUNDS are those that invest in large cap scrips.

AAA RATED FUNDS are those funds that invest only in triple A rated or higher

rated securities.

G SEC / GILT FUNDS invest in gilts or government securities (g-secs)

COMBINATION FUNDS are those that use a mix of each of the above security

selection strategies.

GENERAL FUNDS are those funds that do not follow any specified security

selection criteria

BY OBJECTIVE

This is one of the easiest to follow. Here the funds are classified based on the

objective that the investor has in mind while investing his money. Thus:

GENERAL FUNDS do not have any specific objectives and are ideal for investors

with no particular purpose in mind, apart from a good investment of course.

DEMATERIALIZED SHARES FUNDS invest in dematerialized shares only.

TAX SAVING (ELSS) FUNDS operates in conformity with the guidelines issued


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for Equity Linked Savings Schemes. Such schemes offer investors a tax rebate

under Section 80(C) of the Income Tax Act up to a maximum of Rs.100,000.

However, ELSS funds also prescribe a three-year lock-in period during which the

funds aren't accessible. These funds are also required to invest a minimum of 80 %

of their corpus in equity and related securities.

TAX SAVING (PENSION) enables unit holders to invest for their pension needs.

Investments in such funds normally carry a tax benefit under Section 88. Normally,

these funds also carry a lock-in period, which is determined according to the age of

the investor.

TAX SAVING (Insurance Linked) offers a tax-saving option along with insurance

benefits.

ASSURED RETURN assures unit holders of a minimum return in a prescribed

period. Normally, debt funds assure returns, however, there have been instances in

India of assured return equity schemes as well.

SHORT-TERM FUNDS invest with a short-term perspective. The Investment

timeframe influences the security selection strategy of the fund.

MEDIUM-TERM FUNDS invest with a medium term perspective. Here too,

investment timeframe influences security selection.

LONG-TERM FUNDS invest purely with a long-term perspective.

BY LOAD CHARGED/COST

These are based on whether a fee is charged or not for a particular transaction:

LOAD FUNDS impose a charge on a transaction carried out by the investor. For

example, when the fund sells units, it might charge an amount over and above the


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value of the units. Similarly, at the time of redemption, the fund may return a

slightly smaller amount than the total value of the units. This charge imposed by

the fund is called a "load". Thus, load funds are those that impose a charge either

on entry into the fund or on exit from the fund, or in some cases both on entry and

exit, within the limits as laid down by the regulatory authorities.

NO-LOAD FUNDS do not charge any fee on the transactions carried out by an

investor with the fund.

BY PLACE OF ORIGIN

OFFSHORE FUNDS raise money abroad to be invested in India.

DOMESTIC FUNDS raise and invest money in India.

THE BENEFITS OF MUTUAL FUNDS

DIAGRAM 4


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There are numerous benefits of investing in mutual funds and one of the key

reasons for its phenomenal success in the developed markets like US and UK is the

range of benefits they offer, which are unmatched by most other investment

avenues.

The benefits have been broadly split into universal benefits, applicable to all

schemes, and benefits applicable specifically to open-ended schemes.

BENEFITS

1. AFFORDABILTIY

A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending

upon the investment objective of the scheme. An investor can buy in to a portfolio

of equities, which would otherwise be extremely expensive. Each unit holder thus

gets an exposure to such portfolios with an investment as modest as Rs.500/-. This

amount today would get an investor less than quarter of an Infosys share! Thus, it

would be affordable for an investor to build a portfolio of investments through a

mutual fund rather than investing directly in the stock market.

2. DIVERSIFICATION

It is a well-known fact that one way of ensuring safe investments is to spread them

out over various instruments, securities, asset classes, locations and so on.

In proverbial layman terms:

Don't put all your eggs in one basket!

Mutual Funds, by virtue of their structure, offer investors precisely this benefit of

diversification.


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For instance, take Equity Growth Funds where the fund invests the money

collected in shares of various companies. The advantage? Say, some of the scrips

turn out to be poor investment decisions. The impact of this will not be disastrous

simply because the better investment decisions will balance it out and bring in

returns rather than losses

3. VARIETY OF OPTIONS

Mutual funds offer a tremendous variety of schemes. This variety is beneficial in

two ways:

First, it offers different types of schemes to investors with different needs and risk

appetites;

Secondly, it offers an opportunity to an investor to invest sums across a variety of

schemes, both debt and equity.

For example, an investor can invest his money in a Growth Fund (equity scheme)

and Income Fund (debt scheme) depending on his risk appetite and thus create a

balanced portfolio easily or simply just buy a Balanced Scheme.

4. PROFESSIONAL MANAGEMENT

I. Instead of making decisions based on gut-feel or what one has heard from

others, when an investor buys into a mutual fund, he simply leaves his

investments in the expert hands of Professional fund managers, who invest

this money on the basis of minute analysis and astute investment strategies.

With their skill and experience at work, ones money ends up in the relevant


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assets. Qualified investment professionals who seek to maximize returns and

minimize risk monitor investor's money..

II. POTENTIAL OF RETURNS

Returns in the mutual funds are generally better than any other option in any other

avenue over a reasonable period of time. People can pick their investment horizon

and stay put in the chosen fund for the duration. Equity funds can outperform most

other investments over long periods by placing long-term calls on fundamentally

good stocks. The debt funds too will outperform other options such as banks.

Though they are affected by the interest rate risk in general, the returns generated

are more as they pick securities with different duration that have different yields

and so are able to increase the overall returns from the portfolio.

DIAGRAM

5

THE

RISK

RETURN TRADE-OFF


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The most important relationship to understand is the risk-return trade-off. Higher

the risk greater the returns/loss and lower the risk lesser the returns/loss.

Hence, it is up to the investor to decide how much risk he is willing to take. In

order to do this one must first be aware of the different types of risks involved with

his investment decision.

I. MARKET RISK

Sometimes prices and yields of all securities rise and fall. Broad outside influences

affecting the market in general lead to this situation. This is true, may it be big

corporations or smaller mid-sized companies. This is known as Market Risk. A

Systematic Investment Plan (SIP) that works like a recurring deposit account

might help mitigate this risk.

II. CREDIT RISK

The debt servicing ability (may it be interest payments or repayment of principal)

of a company through its cash flows determines the Credit Risk faced by the

investors. This credit risk is measured by independent rating agencies like CRISIL,

ICRA who rate companies and their paper. An AAA rating is considered the

safest whereas a D rating is considered poor credit quality. A well-diversified

portfolio might help mitigate this risk.

III. INFLATION RISK

Things one can often hear people talking about:

Rs.100 today is worth more than Rs.100 tomorrow.

Remember the time when a bus ride used to cost 50 paise?

The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot

of times people make conservative investment decisions to protect their capital but


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end up with a sum of money that can buy less than what the principal could at the

time of the investment. This happens when inflation grows faster than the return on

ones investment. A well-diversified portfolio with some investment in equities

might help mitigate this risk.

IV. POLITICAL/GOVERNMENT POLICY RISK

Changes in government policy and political decision especially with regard to the

tax benefits may impact the business prospects of the companies leading to an

impact on the investments made by the fund.

They can create a favorable environment for investment or vice-versa. Therefore,

stable monetary and fiscal policies are crucial to sustain a propitious investment

environment.

V. LIQUIDITY RISK

Liquidity risk arises when it becomes difficult to sell the securities that one has

purchased. Liquidity Risk can be partly mitigated by diversification, staggering of

maturities as well as internal risk controls that lean towards purchase of liquid

securities.

VI. DIVERSIFICATION

The nuclear weapon in an investors arsenal to fight against Risk!

Diversification is the idea of spreading out ones money across many different

types of investments. When one investment is down another might be up. It

simply means that one must spread his investment across different securities

(stocks, bonds, money market instruments, real estate, fixed deposits etc.) and

different sectors (auto, textile, information technology etc.). Choosing to diversify

investment holdings not only reduces the risk tremendously but also adds to the

stability of returns.


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The most basic level of diversification is to buy multiple stocks rather than just one

stock. Mutual funds are set up to buy many stocks (even hundreds or thousands).

Mutual funds automatically diversify in a predetermined category of investments

(i.e. - growth companies, low-grade corporate bonds, international small

companies).

QUESTION-WISE ANALYSIS

1.) Do you think you have enough time and expertise to manage your financial

investment?

Results out of 250:

(a) Yes: 34 (b) No: 216


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Following patterns were observed:

(i) Around 86% people opined that the either have time constraints or lack

of expertise in financial area so that they can manage their funds in a best

possible way. They require professional management of their investment.

Such investors can better go for MF investment.

(ii) People belonging to (a) category exhibited profound knowledge of stock

markets, and invest primarily in equities, thus backing their own

judgment over mutual funds

2.) Do you have any knowledge about Mutual Funds?

Results out of 250:

(a) Yes: 78 (b) No: 172


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(i) A large population of investors was found to be ignorant

about MF industry. These include those people who

never have invested in mutual fund product.

(ii) Only 31% of the respondents said they have profound

knowledge about it.

3.) What is your annual income?

Results out of 250:

(a) Below Rs 1,50,000 : 25 (b)Rs 1,50,000 Rs 3,00,000: 102

(c) Rs 3,00,000 Rs 5,00,000: 78 (d) Rs 5,00,000 above: 45


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(i) The chart above simply shows the income distribution of respondents.

Major portion of the respondents lie in category b. The income

distribution affects the preference for the different products.

4.) How do you rate the risk taking ability?

Results out of 250:

(a) Low: 36 (b) Average: 96

(c) Medium: 64 (d) High: 54


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(i) Here category b and category c includes most of the respondents. It is in

accordance with the general tendency of investors to take average risk and to

gain average return. Thus Mutual Funds which fulfills this need, will be

preferred by most of the customers.

(ii) Category d respondents will prefer MF based on equity, which involves high

risk and high return whereas category a, which covers 14% of respondents,

are highly risk averse and will go for MF based purely on Debt funds.

5.) How do you rate the risks associated with Mutual Funds?

Results out of 250:

(a) Low: 67 (b) Average: 98

(c) Medium: 65 (d) High: 20


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(i) Around 40% of the respondents believe that investing in MFs involves

average risk and 27 % believe that it has medium risk.

(ii) 67% people think that the risk involved is quite low with MFs, thus

they are the ones who will prefer to invest MFs.

6.) What is your expected rate of return on Investments in a year?

Results out of 250:

(a) Less than 10 %: 12 (b) 10 % - 25 %: 123

(c) 25 % - 40 %: 71 (d) 40 % above: 44


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(i) Most of the people expectation is below 10%. This might be because of

the depression in the market.

7.) Do you think, it is safe to invest in Mutual Funds?

Results out of 250:

(a)Yes: 189 (b) No: 15

(c) Cant say: 46


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Interpretation:

It is good to see that people have still expectations from mutual funds. In this

scenario of market it is good to concentrate.

8.) How long would you like to hold your Investments?

Results out of 250:

(a) Less than 5 yrs: 21 (b) 5 to 10 yrs: 117

(c) 10 to 15 yrs: 76 (d) more than 15 yrs: 36


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Interpretation:

This shows a good sign from the investors that people understand that long term

investment will give them a good earn, however people also do not want to leave

that money for more than 10 years.

9.) Which Mutual Fund Plan do you consider the best?

Results out of 250:

(a) Balanced Plan: 111 (b) Equity Plan: 53

(c) Income Funds: 34 (d) Gilt funds: 40

(e) Cant say: 12


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Interpretation:

People of Dehradun are good in understanding the nature of market. They want to

diversify their investment rather than investing in few.

10.) During current scenario of market, do you think Mutual Funds are

destination for investments?

(a) Yes: 187 (b) No: 31

(c) Cant say: 32


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Interpretation:

Most of the people are satisfied with mutual funds and the think mutual funds as a

good option to invest.

11.) What are the factors that attract you to invest in Mutual Funds?

Results out of 250:

(a) Good Returns: 87 (b) Tax Benefits / Exemptions: 45

(c) Professional Management: 76 (d) Other: 42


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Interpretation:

In mutual funds people get good returns and also their risk is diversification. This

is due to the proper and professional management of funds.

12.)Which end-scheme do you feel is good?

Results out of 250:

(a) Close-end: 33 (b) Open-end: 217


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Interpretation:

Most of the people want to go with the open ended scheme. Thus MF with

liquidity options can better cater to the need of customers.

13.)Which among the following is the safest Investment option?

Results out of 250:

(a) Stock Markets: 11 (b) Mutual Funds: 75

(c) Bank Deposits: 83 (d) Others: 81


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Interpretation:

Due to steep declination in the stock market people think it is better to retain

money in banks, however a good amount of people still believe that mutual fund is

a good option. Although they have got certain losses but it is very less as compared

to the gain they have got from the mutual funds.

14.) What would you look for in a Mutual Fund company?

Results out of 250:

a) A trusted name: 98 b) Friendly service & responsiveness: 54

c) Good Plans: 78 d) Accessibility: 20


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Interpretation:

People think many times before investing. Brand image is given

the most preference and then the second most important thing

which people think about are the good plans.


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15.)Which of the following Mutual Fund product would you prefer?

Results out of 250:

a) Reliance MFs: 44 b) Tata AIG MFs: 57

c) SBI Life MFs: 71 d) ICICI MFs: 49

e) UTI MFs: 21 f) Others: 9

Interpretation:

It is clear from the results that people rely on the brand image of

the company. So the results have come according to the reliability

of the people on the organization. They thought that their money

is more secured in public sector companies.


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16.)How do you rate your experience with Mutual Funds?

Results out of 250:

(a) Excellent: 23 (b) Very good: 43

(c) Good: 52 (d) Average: 119 (e) Bad: 13

Interpretation:

Most of the people have got either average or good returns with mutual funds so

they are satisfied with the performance of mutual fund in this scenario.


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17.)Are you satisfied with the services offered by Reliance with respect to

MF? (Answer if you are a customer of Reliance or if you are aware of its

services)

Results out of 250:

(a) Yes: 176 (b) No: 67


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(c) Cant say: 107

Interpretation:

It is a good sign for Reliance that most of the people are fully satisfied with the

performance of the company. But still about of the people are having some

problem with it. So it is better to concentrate on the services and improve it to get

better results.


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CONCLUSION

1. Most the people dont have time to manage their financial

investments. So they will depend on ant broker to manage

their fincial investments.

2. The knowledge about the mutual funds is very less in the

customers. So it is very much essential to make them aware

of different types of options available to them in the market.

3. The investments which are having moderate risk are more

attracted by the customers. So mutual funds can have a long

run to go.

4. Most of the customers are aware that the risk associated

with mutual funds is average when compared to other

investments

5. The expectations of the customers were very less because of

downfall of the market

6. Most of the customers are of the opinion that it is safe to

ionvest on mutual funds as the economy is very down

7. Most of the investors were in long term growth of their

investments


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8. The people want to diversify their they investments

9. The customers were looking for liquidity in their options

10. They were in favour of open ended mutual funds

11. The most trusted mutual funds are SBI, TATA AiG,

RELIANCE, etc.

12. While choosing investments the customers choose the

trusted names more.

.

Questionnaire

Perception of consumers based on Reliance Mutual

Fund Products

Name = _______________________________Mob.__________________

Age = __________________ Gender = __________________

Profession = __________________

1.) Do you think you have enough time and expertise to manage your financial

investment?

(a) Yes (b) No

2.) Do you have any knowledge about Mutual Funds?

(a) Yes (b) No


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3.) What is your annual income?

(a) Below Rs 1,50,000 (b)Rs 1,50,000 Rs 3,00,000

(c) Rs 3,00,000 Rs 5,00,000 (d) Rs 5,00,000 above

4.) How do you rate your the risk taking ability?

(a) Low (b) Average

(c) Medium (d) High

5.) How do you rate the risks associated with Mutual Funds?

(a) Low (b) Average

(c) Medium (d) High

6.) What is your expected rate of return on Investments in a year?

(a) Less than 10 % (b) 10 % - 25 %

(c) 25 % - 40 % (d) 40 % above

7.) Do you think, it is safe to invest in Mutual Funds?

(a)Yes (b) No

8.) How long would you like to hold your Investments?

(a) Less than 5 yrs (b) 5 to 10 yrs

(c) 10 to 15 yrs (d) more than 15 yrs

9.) Which Mutual Fund Plan do you consider the best?

(a) Balanced Plan (b) Equity Plan


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(c) Income Funds (d) Gilt funds

10.) During current scenario of market, do you think Mutual Funds are a

destination for investments?

(a) Yes (b) No

11.) What are the factors that attract you to invest in Mutual Funds?

(a) Good Returns (b) Tax Benefits / Exemptions

(c) Professional Management (d) Other (specify___________________)

12.) Which end-scheme do you feel is good?

(a) Close-end (b) Open-end

13.) Which among the following is the safest Investment option?

(a) Stock Markets (b) Mutual Funds

(c) Bank Deposits (d) Others (specify__________________)

14.) What would you look for in a Mutual Fund company?

a) A trusted name b) Friendly service & responsiveness

c) Good Plans d) Accessibility

15.) Which of the following Mutual Fund product would you prefer?

a) Reliance MFs b) Tata AIG MFs

c) SBI Life MFs d) ICICI MFs


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e) UTI MFs f) others.

16.) How do you rate your experience with Mutual Funds?

(a) Excellent (b) Very good (c) Good (d) Average (e) Bad

17.) Are you satisfied with the services offered by Reliance with respect to

MF? (Answer if you are a customer of Reliance or if you are aware of its

services)

(a) Yes (b) No

If not, why _________________________________________

Thank You for Your cooperation

References:


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http://www.Reliance .com/v2/showPage.asp?page=homePage.asp

http://www.Reliance online.com/

http://demataccount.com/

https://nsdl.co.in/about/index.php

http://www.cdslindia.com/

http://www.religare.in/\

http://www.religare.in/apply-now.asp

www.demataccount.com

http://www.nse-india.com/

http://www.bseindia.com/

Reports of previous years

Finapolish(monthly magazine of Reliance ),Jan(09),Feb(09),Mar(09)

Business Research Methods(Donald.R.Cooper and Pamela.S.Schindler).8th

Edition

Tata McGraw-Hill, 2003.
http://www.karvy.com/v2/showPage.asp?page=homePage.asphttp://www.karvyonline.com/http://demataccount.com/https://nsdl.co.in/about/index.phphttp://www.cdslindia.com/http://www.religare.in/%5Chttp://www.religare.in/apply-now.asphttp://www.demataccount.com/http://www.nse-india.com/http://www.karvy.com/v2/showPage.asp?page=homePage.asphttp://www.karvyonline.com/http://demataccount.com/https://nsdl.co.in/about/index.phphttp://www.cdslindia.com/http://www.religare.in/%5Chttp://www.religare.in/apply-now.asphttp://www.demataccount.com/http://www.nse-india.com/

Documents

Differernt Mutual Fund Scheme for Hnis