a project report on which comparision is done and various mutual fund schemes are studied.

1. A
Project Report
0n
“A Comparative Analysis Of Mutual Fund Schemes In Various Banks”
Submitted to Rajasthan University in partial fulfillment requirement of
Bachelor of Business Administration (BBA) in lieu of paper 406
2015-16
Submitted by: Submitted To:
Maya Singh Ms.Varsha Sharma
BBA IV sem (Assistant Professor)
From
BIYANI GIRLS COLLEGE (BGC)
JAIPUR (RAJASTHAN)
1

2. DECLARATION BY STUDENT
I hereby declare that this report is my original work and I have not copied it from anywhere. I
further declare that I have not submitted this report anywhere else.
Maya Singh
BBA IV SEM
BGC
DECLARATION BY GUIDE
It is to certify that Ms Maya Singh student of BBA IV Sem, Biyani Girls College has
completed the project title on “Comparative Analysis Of Mutual Fund Schemes In
Various Banks” under my guidance. I wish her all success in academic carrier as well as her
life.
Ms. Varsha Sharma
Assistant Professor
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3. Acknowledgment
A project is the fruit of experiment and experience and it goes a long way to modeling a
person and gaining a new insight in that field of research.
In this rewarding experience, one recognizes the help and support rendered by kind heart
behind its success.
I would take this opportunity to thank all my teachers, especially Ms. Varsha Sharma, my
project guide, who sincerely guided and supported me in doing the project and has given me
the relevant information on the topic.
Maya Singh
BBA IV SEM
3

4. PREFACE
The project report is a part of the curriculum of the Rajasthan University, Bachelor of
Business Administrative (BBA IV SEM). It is aimed to provide the student an exposure.
The subject of my study is " Comparative Analysis of Mutual Fund Schemes In Various
Banks " is a part of our academic session.
Mutual funds are pools of money that are managed by an investment charter. A Mutual Fund
is a trust that pools the savings of a number of investors who share a common financial goal.
The money thus collected is invested by the fund manager in different types of securities
depending upon the objective of the scheme. These could range from shares to debentures to
money market instruments. The income earned through these investments and the capital
appreciation realized by the scheme are shared by its unit holders in proportion to the number
of units owned by them (pro rata). Thus a Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified, professionally managed
portfolio at a relatively low cost
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5. CONTENTS
SR. No. TOPICS Pages
1. INTRODUCTION OF MUTUAL FUND 1-21
2. RELIANCE MUTUAL FUND vs. UTI MUTUAL
FUND
20-28
3. RESEARCH METHODOLOGY
• OBJECTIVES
• LIMITATIONS
• SCOPE OF STUDY
30
31
32
33
4. DATA ANALYSIS 35-44
5. FINDINGS,CONCLUSION,SUGGESTION 45-47
6. QUESTIONNAIRE 48-51
7. BIBLIOGRAPHY -
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6. INTRODUCTION OF MUTUAL FUND
There are a lot of investment avenues available today in the financial market for an investor
with an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds
where there is low risk but low return. He may invest in Stock of companies where the risk is
high and the returns are also proportionately high. The recent trends in the Stock Market have
shown that an average retail investor always lost with periodic bearish tends. People began
opting for portfolio managers with expertise in stock markets who would invest on their
behalf. Thus we had wealth management services provided by many institutions. However
they proved too costly for a small investor. These investors have found a good shelter with
the mutual funds.
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7. 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 fast-growing smaller companies or market segments. Aggressive growth funds
are also called capital appreciation funds”.
RETURN RISK MATRIX
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8. HISTORY OF MUTUAL FUNDS IN INDIA
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank. The history of mutual funds in
India can be broadly divided into four distinct phases.
FIRST PHASE – 1964-87:
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6,700 crores of assets under management.
SECOND PHASE – 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS):
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47,004
crores.
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9. THIRD PHASE – 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS):
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions.
As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805
crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way
ahead of other mutual funds.
FOURTH PHASE – SINCE FEBRUARY 2003:
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs.29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
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10. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation
of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth. As at the
end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores
under 421 schemes.
ADVANTAGES OF MUTUAL FUNDS
1. Portfolio Diversification:
Each investor in the fund is a part owner of all the fund’s assets, thus enabling him to hold a
diversified investment portfolio even with a small amount of investment that would otherwise
require big capital.
2. Professional Management:
Even if an investor has a big amount of capital available to him, he benefits from the
professional management skills brought in by the fund in the management of the investor’s
portfolio. The investment management skills, along with the needed research into available
investment options, ensure a much better return than what an investor can manage on his
own. Few investors have the skill and resources of their own to succeed in today’s fast
moving, global and sophisticated markets.
3. Reduction/Diversification Of Risk:When an investor invests directly, all the risk of
potential loss is his own, whether he places a deposit with a company or a bank, or he buys a
share or debenture on his own or in any other from. While investing in the pool of funds with
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11. investors, the potential losses are also shared with other investors. The risk reduction is one
of the most important benefits of a collective investment vehicle like the mutual fund.
4. Reduction Of Transaction Costs:What is true of risk as also true of the transaction costs.
The investor bears all the costs of investing such as brokerage or custody of securities. When
going through a fund, he has the benefit of economies of scale; the funds pay lesser costs
because of larger volumes, a benefit passed on to its investors.
5. Liquidity:Often, investors hold shares or bonds they cannot directly, easily and quickly
sell. When they invest in the units of a fund, they can generally cash their investments any
time, by selling their units to the fund if open-ended, or selling them in the market if the fund
is close-end. Liquidity of investment is clearly a big benefit.
6. Convenience And Flexibility:Mutual fund management companies offer many investor
services that a direct market investor cannot get. Investors can easily transfer their holding
from one scheme to the other; get updated market information and so on.
7. Tax Benefits:Any income distributed after March 31, 2002 will be subject to tax in the
assessment of all Unit holders. However, as a measure of concession to Unit holders of open-
ended equity- oriented funds, income distributions for the year ending March 31, 2003, will
be taxed at a concessional rate of 10.5%.
8. Choice of Schemes:
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
9. Well Regulated:All Mutual Funds are registered with SEBI and they function within the
provisions of strict regulations designed to protect the interests of investors. The operations of
Mutual Funds are regularly monitored by SEBI.
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12. 10. Transparency:
You get regular information on the value of your investment in addition to disclosure on the
specific investments made by your scheme, the proportion invested in each class of assets and
the fund manager's investment strategy and outlook.
DISADVANTAGES Of MUTUAL FUNDS:
1. No Control over Costs: An investor in a mutual fund has no control of the overall costs of
investing. The investor pays investment management fees as long as he remains with the
fund, albeit in return for the professional management and research. Fees are payable even if
the value of his investments is declining. A mutual fund investor also pays fund distribution
costs, which he would not incur in direct investing. However, this shortcoming only means
that there is a cost to obtain the mutual fund services.
2. No Tailor-Made Portfolio:Investors who invest on their own can build their own
portfolios of shares and bonds and other securities. Investing through fund means he
delegates this decision to the fund managers. The very-high-net-worth individuals or large
corporate investors may find this to be a constraint in achieving their objectives. However,
most mutual fund managers help investors overcome this constraint by offering families of
funds- a large number of different schemes- within their own management company. An
investor can choose from different investment plans and constructs a portfolio to his choice.
3. Managing a Portfolio Of Funds:Availability of a large number of funds can actually
mean too much choice for the investor. He may again need advice on how to select a fund to
achieve his objectives, quite similar to the situation when he has individual shares or bonds to
select.
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13. 4. The Wisdom of Professional Management:That's right, this is not an advantage. The
average mutual fund manager is no better at picking stocks than the average nonprofessional,
but charges fees.
5. No Control:Unlike picking your own individual stocks, a mutual fund puts you in the
passenger seat of somebody else's car.
6. Dilution:Mutual funds generally have such small holdings of so many different stocks that
insanely great performance by a fund's top holdings still doesn't make much of a difference in
a mutual fund's total performance.
7. Buried Costs:Many mutual funds specialize in burying their costs and in hiring salesmen
who do not make those costs clear to their clients.
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14. TYPES OF MUTUAL FUNDS SCHEMES IN INDIA
Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position,
risk tolerance and return expectations etc. thus mutual funds has Variety of flavors, Being a
collection of many stocks, an investors can go for picking a mutual fund might be easy. There
are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual
funds in categories, mentioned below:
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15. A). BY STRUCTURE
1. Open - Ended Schemes: An open-end fund is one that is available for subscription all
through the year. These do not have a fixed maturity. Investors can conveniently buy and sell
units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is
liquidity.
2. Close - Ended Schemes: Closed-end fund has a stipulated maturity period which generally
ranging from 3 to 15 years. The fund is open for subscription only during a specified period.
Investors can invest in the scheme at the time of the initial public issue and thereafter they
can buy or sell the units of the scheme on the stock exchanges where they are listed. In order
to provide an exit route to the investors, some close-ended funds give an option of selling
back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI
Regulations stipulate that at least one of the two exit routes is provided to the investor.
3. Interval Schemes: Interval Schemes are that scheme, which combines the features of
open-ended and close- ended schemes. The units may be traded on the stock exchange or may
be open for sale or redemption during pre-determined intervals at NAV related prices.
B). BY NATURE
1. Equity Fund: These funds invest a maximum part of their corpus into equities holdings.
The structure of the fund may vary different for different schemes and the fund manager’s
outlook on different stocks. The Equity Funds are sub-classified depending upon their
investment objective, as follows:
• Diversified Equity Funds
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16. • Mid-Cap Funds
• Sector Specific Funds
• Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon, thus Equity funds rank high on the
risk-return matrix.
2. Debt Funds: The objective of these Funds is to invest in debt papers. Government
authorities, private companies, banks and financial institutions are some of the major issuers
of debt papers. By investing in debt instruments, these funds ensure low risk and provide
stable income to the investors.
3. Balanced Funds: As the name suggest they, are a mix of both equity and debt funds. They
invest in both equities and fixed income securities, which are in line with pre-defined
investment objective of the scheme. These schemes aim to provide investors with the best of
both the worlds. Equity part provides growth and the debt part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of investment
parameter viz, Each category of funds is backed by an investment philosophy, which is pre-
defined in the objectives of the fund. The investor can align his own investment needs with
the funds objective and invest accordingly.
C). BY INVESTMENT OBJECTIVE:
Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these
schemes is to provide capital appreciation over medium to long term. These schemes
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17. normally invest a major part of their fund in equities and are willing to bear short-term
decline in value for possible future appreciation.
Income Schemes: Income Schemes are also known as debt schemes. The aim of these
schemes is to provide regular and steady income to investors. These schemes generally invest
in fixed income securities such as bonds and corporate debentures. Capital appreciation in
such schemes may be limited.
Balanced Schemes: Balanced Schemes aim to provide both growth and income by
periodically distributing a part of the income and capital gains they earn. These schemes
invest in both shares and fixed income securities, in the proportion indicated in their offer
documents (normally 50:50).
Money Market Schemes: Money Market Schemes aim to provide easy liquidity,
preservation of capital and moderate income. These schemes generally invest in safer, short-
term instruments, such as treasury bills, certificates of deposit, commercial paper and inter-
bank call money.
Load Funds: A Load Fund is one that charges a commission for entry or exit. That is, each
time you buy or sell units in the fund, a commission will be payable. Typically entry and exit
loads range from 1% to 2%. It could be worth paying the load, if the fund has a good
performance history.
No-Load Funds: A No-Load Fund is one that does not charge a commission for entry or
exit. That is, no commission is payable on purchase or sale of units in the fund. The
advantage of a no load fund is that the entire corpus is put to work.
OTHER SCHEMES:
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18. Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax laws
prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to any
Equity Linked Savings Scheme (ELSS) are eligible for rebate.
Index Schemes: Index schemes attempt to replicate the performance of a particular index
such as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only
those stocks that constitute the index. The percentage of each stock to the total holding will
be identical to the stocks index weight age. And hence, the returns from such schemes would
be more or less equivalent to those of the Index.
Sector Specific Schemes: These are the funds/schemes which invest in the securities of only
those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals,
Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these
funds are dependent on the performance of the respective sectors/industries. While these
funds may give higher returns, they are more risky compared to diversified funds. Investors
need to keep a watch on the performance of those sectors/industries and must exit at an
appropriate time.
WORKING OF MUTUAL FUNDS
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19. The mutual fund collects money directly or through brokers from investors. The money is
invested in various instruments depending on the objective of the scheme. The income
generated by selling securities or capital appreciation of these securities is passed on to the
investors in proportion to their investment in the scheme. The investments are divided into
units and the value of the units will be reflected in Net Asset Value or NAV of the unit. NAV
is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the
net asset value of the scheme divided by the number of units outstanding on the valuation
date. Mutual fund companies provide daily net asset value of their schemes to their investors.
NAV is important, as it will determine the price at which you buy or redeem the units of a
scheme. Depending on the load structure of the scheme, you have to pay entry or exit load.
STRUCTURE OF A MUTUAL FUND:
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20. India has a legal framework within which Mutual Fund have to be constituted. In India open
and close-end funds operate under the same regulatory structure i.e. as unit Trusts. A Mutual
Fund in India is allowed to issue open-end and close-end schemes under a common legal
structure. The structure that is required to be followed by any Mutual Fund in India is laid
down under SEBI (Mutual Fund) Regulations, 1996.
The Fund Sponsor: Sponsor is defined under SEBI regulations as any person who, acting
alone or in combination of another corporate body establishes a Mutual Fund. The sponsor of
the fund is akin to the promoter of a company as he gets the fund registered with SEBI. The
sponsor forms a trust and appoints a Board of Trustees. The sponsor also appoints the Asset
Management Company as fund managers. The sponsor either directly or acting through the
trustees will also appoint a custodian to hold funds assets. All these are made in accordance
with the regulation and guidelines of SEBI. As per the SEBI regulations, for the person to
qualify as a sponsor, he must contribute at least 40% of the net worth of the Asset
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21. Management Company and possesses a sound financial track record over 5 years prior to
registration.
Mutual Funds as Trusts: A Mutual Fund in India is constituted in the form of Public trust
Act, 1882. The Fund sponsor acts as a settler of the Trust, contributing to its initial capital
and appoints a trustee to hold the assets of the trust for the benefit of the unit-holders, who
are the beneficiaries of the trust. The fund then invites investors to contribute their money in
common pool, by scribing to “units” issued by various schemes established by the Trusts as
evidence of their beneficial interest in the fund.
Trustees: A Trust is created through a document called the Trust Deed that is executed by
the fund sponsor in favour of the trustees. The Trust- the Mutual Fund – may be managed by
a board of trustees- a body of individuals, or a trust company- a corporate body. Most of the
funds in India are managed by Boards of Trustees. While the boards of trustees are governed
by the Indian Trusts Act, where the trusts are a corporate body, it would also require to
comply with the Companies Act, 1956. The Board or the Trust company as an independent
body, acts as a protector of the of the unit-holders interests. objectives and in accordance with
the trusts deeds and SEBI regulations.
The Asset Management Companies: The role of an Asset Management Company
(AMC) is to act as the investment manager of the Trust under the board supervision and the
guidance of the Trustees. The AMC is required to be approved and registered with SEBI as
an AMC. The AMC of a Mutual Fund must have a net worth of at least Rs. 10 Crores at all
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22. times. Directors of the AMC, both independent and non- independent, should have adequate
professional expertise in financial services and should be individuals of high morale standing,
a condition also applicable to other key personnel of the AMC. The AMC cannot act as a
Trustee of any other Mutual Fund. Besides its role as a fund manager, it may undertake
specified activities such as advisory services and financial consulting, provided these
activities are run independent of one another and the AMC’s resources (such as personnel,
systems etc.) are properly segregated by the activity. The AMC must always act in the
interest of the unit-holders and reports to the trustees with respect to its activities.
Custodian and Depositories: Mutual Fund is in the business of buying and selling of
securities in large volumes. Handling these securities in terms of physical delivery and
eventual safekeeping is a specialized activity. The custodian is appointed by the Board of
Trustees for safekeeping of securities or participating in any clearance system through
approved depository companies on behalf of the Mutual Fund and it must fulfill its
responsibilities in accordance with its agreement with the Mutual Fund. The custodian should
be an entity independent of the sponsors and is required to be registered with SEBI. With the
introduction of the concept of dematerialization of shares the dematerialized shares are kept
with the Depository participant while the custodian holds the physical securities. Thus,
deliveries of a fund’s securities are given or received by a custodian or a depository
participant, at the instructions of the AMC, although under the overall direction and
responsibilities of the Trustees.
Bankers:A Fund’s activities involve dealing in money on a continuous basis primarily with
respect to buying and selling units, paying for investment made, receiving the proceeds from
sale of the investments and discharging its obligations towards operating expenses. Thus the
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23. Fund’s banker plays an important role to determine quality of service that the fund gives in
timely delivery of remittances etc.
Transfer Agents: Transfer agents are responsible for issuing and redeeming units of the
Mutual Fund and provide other related services such as preparation of transfer documents and
updating investor records. A fund may choose to carry out its activity in-house and charge the
scheme for the service at a competitive market rate. Where an outside Transfer agent is used,
the fund investor will find the agent to be an important interface to deal with, since all of the
investor services that a fund provides are going to be dependent on the transfer agent.
REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA
The structure of mutual funds in India is guided by the SEBI. Regulations, 1996.These
regulations make it mandatory for mutual fund to have three structures of sponsor trustee and
asset Management Company. The sponsor of the mutual fund and appoints the trustees. The
trustees are responsible to the investors in mutual fund and appoint the AMC for managing
the investment portfolio. The AMC is the business face of the mutual fund, as it manages all
the affairs of the mutual fund. The AMC and the mutual fund have to be registered with
SEBI.
SEBI REGULATIONS
• As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual
funds to protect the interest of the investors.
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24. • SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored
by private sector entities were allowed to enter the capital market.
• The regulations were fully revised in 1996 and have been amended thereafter from time to
time.
• SEBI has also issued guidelines to the mutual funds from time to time to protect the
interests of investors.
• All mutual funds whether promoted by public sector or private sector entities including
those promoted by foreign entities are governed by the same set of Regulations. The risks
associated with the schemes launched by the mutual funds sponsored by these entities are of
similar type. There is no distinction in regulatory requirements for these mutual funds and all
are subject to monitoring and inspections by SEBI.
• SEBI Regulations require that at least two thirds of the directors of trustee company or
board of trustees must be independent i.e. they should not be associated with the sponsors.
• Also, 50% of the directors of AMC must be independent. All mutual funds are required to
be registered with SEBI before they launch any scheme.
• Further SEBI Regulations, inter-alia, stipulate that MFs cannot guarantee returns in any
scheme and that each scheme is subject to 20 : 25 condition [I.e. minimum 20 investors per
scheme and one investor can hold more than 25% stake in the corpus in that one scheme].
• Also SEBI has permitted MFs to launch schemes overseas subject various restrictions and
also to launch schemes linked to Real Estate, Options and Futures, Commodities, etc.
Major Mutual Fund Companies in India:
• ABN AMRO Mutual Fund,
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25. • Birla Sun Life Mutual Fund,
• Bank of Baroda Mutual Fund,
• HDFC Mutual Fund,
•HSBC Mutual Fund,
• ING Vysya Mutual Fund,
• Prudential ICICI Mutual Fund,
• St ate Bank of India Mutual Fund,
• Tata Mutual Fund,
• Unit Trust of India Mutual Fund,
• Reliance Mutual Fund,
• Standard Chartered Mutual Fund,
• Franklin Templeton India Mutual Fund,
• Morgan Stanley Mutual Fund India,
• Escorts Mutual Fund,
• Alliance Capital Mutual Fund,
• Benchmark Mutual Fund,
• Can bank Mutual Fund,
• Chola Mutual Fund,
• LIC Mutual Fund,
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26. • GIC Mutual Fund.
RELIANCE MUTUAL FUND Vs UTI MUTUAL FUND
26

27. RELIANCE MUTUAL FUND
Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. The
sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the
Trustee. It was registered on June 30, 1995 as Reliance Capital Mutual Fund which was
changed on March 11, 2004. Reliance Mutual Fund was formed for launching of various
schemes under which units are issued to the Public with a view to contribute to the capital
market and to provide investors the opportunities to make investments in diversified
securities.
RMF is one of India’s leading Mutual Funds, with Average Assets Under Management
(AAUM) of Rs. 88,388 crs (AAUM for 30th Apr 09) and an investor base of over 71.53
Lacs. Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of
the fastest growing mutual funds in the country. RMF offers investors a well-rounded
portfolio of products to meet varying investor requirements and has presence in 118 cities
across the country.
Reliance Mutual Fund constantly endeavours to launch innovative products and customer
service initiatives to increase value to investors. "Reliance Mutual Fund schemes are
managed by Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital
Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital
being held by minority shareholders."
27

28. Sponsor: Reliance Capital Limited.
Trustee: Reliance Capital Trustee Co. Limited.
Investment Manager:
Reliance Capital Asset Management Limited. The Sponsor, the Trustee and the Investment
Manager are incorporated under the Companies Act 1956.
Vision Statement:
“To be a globally respected wealth creator with an emphasis on customer care and a culture
of good corporate governance.”
Mission Statement:
To create and nurture a world-class, high performance environment aimed at delighting our
customers.
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29. The Main Objectives of the Trust:
• To carry on the activity of a Mutual Fund as may be permitted at law and formulate and
devise various collective Schemes of savings and investments for people in India and abroad
and also ensure liquidity of investments for the Unit holders;
•To deploy Funds thus rose so as to help the Unit holders earn reasonable returns on their
savings.
•To take such steps as may be necessary from time to time to realise the effects without any
limitation.
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30. UNIT TRUST OF INDIA MUTUAL FUND
'Unit Trust of India was created by the UTI Act passed by the Parliament in 1963. For more
than two decades it remained the sole vehicle for investment in the capital market by the
Indian citizens. In mid- 1980s public sector banks were allowed to open mutual funds. The
real vibrancy and competition in the MF industry came with the setting up of the Regulator
SEBI and its laying down the MF Regulations in 1993.UTI maintained its pre-eminent place
till 2001, when a massive decline in the market indices and negative investor sentiments after
Ketan Parekh scam created doubts about the capacity of UTI to meet its obligations to the
investors. This was further compounded by two factors; namely, its flagship and largest
scheme US 64 was sold and re-purchased not at intrinsic NAV but at artificial price and its
Assured Return Schemes had promised returns as high as 18% over a period going up to two
decades.
In order to distance Government from running a mutual fund the ownership was transferred
to four institutions; namely SBI, LIC, BOB and PNB, each owning 25%. UTI lost its market
dominance rapidly and by end of 2005,when the new share-holders actually paid the
consideration money to Government its market share had come down to close to 10%.
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31. A new board was constituted and a new management inducted. Systematic study of its
problems role and functions was carried out with the help of a reputed international
consultant. Once again UTI has emerged as a serious player in the industry. Some of the
funds have won famous awards, including the Best Infra Fund globally from Lipper. UTI has
been able to benchmark its employee compensation to the best in the market.
Besides running domestic MF Schemes UTI AMC is also a registered portfolio manager
under the SEBI (Portfolio Managers) Regulations.
This company runs two successful funds with large international investors being active
participants. UTI has also launched a Private Equity Infrastructure Fund along with HSH
Nord Bank of Germany and Shinsei Bank of Japan.
Vision:
To be the most Preferred Mutual Fund.
Mission:
• The most trusted brand, admired by all stakeholders.
• The largest and most efficient money manager with global presence
• The best in class customer service provider
• The most preferred employer
• The most innovative and best wealth creator
• A socially responsible organisation known for best corporate governance.
31

32. Assets Under Management: UTI Asset Management Co. Ltd
Sponsor:
•State Bank of India
•Bank of Baroda
•Punjab National Bank
•Life Insurance Corporation of India
Trustee: UTI Trustee Co. Limited.
Reliability:
UTIMF has consistently reset and upgraded transparency standards. All the branches, UFCs
and registrar offices are connected on a robust IT network to ensure cost-effective quick and
efficient service. All these have evolved UTIMF to position as a dynamic, responsive,
restructured, efficient and transparent entity, fully compliant with SEBI regulations.
RELIANCE MUTUAL FUND UTI MUTUAL FUND
When started? Established in 1995
Currently No. 1 company in India.
Established in 1964
First Mutual Fund company
in India.
How they come into
business?
Registered with SEBI as trust
under Indian trust Act 1882.
By the UTI act passed by the
parliament in 1963.
Minimum investment Rs. 500.0 Rs. 1000.0
Investment Equity: Equity:
32

33. Bank: 8-15%
Software: 8-19%
Petroleum products: 4-8%
Pharmaceuticals: 6-10%
Invest in 12-20 sectors which
includes: Auto, Auto Ancillaries,
Finance, Industrial Capital Goods,
Telecom-Services, Power,
Construction Project, Hotels,
Retailing, Media & Entertainment,
Transportation etc.
Financial service: 16-22%
Energy: 12-18%
Consumer goods: 08-14%
Invest in 7-15 sector which
include: IT, Telecom,
Automobile, Cement
Products, Derivatives,
Textile, Metals etc.
Main Funds.
UTI Dividend yield fund,
UTI Opportunity Fund.
Reliance Diversified Fund,
Reliance Equity Opportunity
Fund,
Reliance regular saving
funds.
Type of fund offered Equity fund, Debt Fund, Sector
specific fund and Gold exchange
traded fund.
Equity fund, Index fund,
Asset fund, Balanced fund,
Debt fund(Income, Liquid)
Numbers of schemes
offered
106 schemes. 107 schemes.
Distribution • Online and internet based
distribution.
• Reliance outlets and branches.
• Tie-up with Post offices
branches.
• UTI outlets and Branches.
Is any other venue? • Life Insurance. • UTI Bank.
33

34. • General Insurance.
• Broking and distribution.
• Consumer Finance.
• Private Equity.
• Assets Reconstruction.
• Pan card.
• Bank Recruitment.
• ULIP.
RESEARCH METHODOLOGY
Research as a care full investigation or enquiry especially through search for a new facts in
any branch of knowledge” Research is an academic activity and such as the term should be
34

35. used in technical sense. The manipulation of things , concepts or symbols for the purpose of
generalizing to extend ,correct or verify knowledge ,whether that knowledge through
objective.
ANALYTICAL RESERCH:
In this project work, analytical research is used. In this project has to use facts or
information .Already used available, and analyze these to make a critical evolution of the
material.
METHODS OF DATA COLLECTION:
In this project work primary and secondary data sources of data has been used.
Primary data: Primary data collect through observation, or through direct communication or
doing experiments.
Secondary data: Secondary data means already available through books, journals,
magazines, newspaper.
ANALYSIS: For the proper analysis of data Quantitative Technique such as percentage
method was used.
SCOPE OF STUDY
35

36. The main purpose of doing this project was to know about mutual fund and its functioning.
This helps to know in details about mutual fund industry right from its inception stage,
growth and future prospects.
It also helps in understanding different schemes of mutual funds. Because my study depends
upon prominent funds in India and their schemes like equity, income, balance as well as the
returns associated with those schemes.
The project study was done to ascertain the asset allocation, entry load, exit load, associated
with the mutual funds. Ultimately this would help in understanding the benefits of mutual
funds to investors.
OBJECTIVES
36

37. To give a brief idea about the benefits available from Mutual Fund investment.
To give an idea of the types of schemes available.
To study some of the mutual fund schemes.
To study on reliance mutual fund and uti mutual funds.
To compare reliance mutual funds with uti mutual funds.
To know which company provides better customer satisfaction.
To know why people invest in reliance and uti mutual funds.
LIMITATIONS:
37

38. • The study is limited to the different schemes available under the mutual funds selected.
• The study is limited to selected mutual fund schemes.
• The lack of information sources for the analysis part.
DATA ANALYSIS AND INTERPRETATION:
38

39. Q1 Are you an investor in mutual funds?
Yes 90
No 10
INTERPRETATION:- Investors 90% and non-investors 10%.
Q.2 What do you look before investing in a particular mutual fund scheme?
Past performance (NAV) 30
Asset management companies(AMC) 25
Ratings (by CRISIL, ICRA, etc.) 35
Expert advice 10
INTERPRETATION:- looks for past performance 30%,asset management companies
25%,ratings 35% and expert advice 10%.
Q.3 how is your invested pattern?
Monthly 20
Once in six months 25
Once in year 40
Very rare 15
39

40. monthly
once in six
months
once in year
very rare
INTERPRETATION : Monthly 20%,once in six months 25%,once in year 40% and
very rare 15%.
Q.4Which banking mutual fund do you prefer for mutual Fund?
Company Name Percentages of respondents
Reliance Money 25
Other 10
UTI 15
40

41. INTERPRETATION: 50% of respondent have Reliance Money, 30% of respondent have
UTI and 20% others.
Q.5 Which banking mutual fund offer you good investment plan?
Company Name Percentage of respondent
Reliance 22
Other 21
UTI 7
0
5
10
15
20
25
RELIANCE Other UTI
41

42. INTERPRETATION: 44% respondent for Reliance, 32 % for other, 14% for UTI.
Q.6 Which banking mutual fund offer a lot of tax saving?
Company Name Percentage of respondent
Reliance 20
Other 15
UTI 15
0
2
4
6
8
10
12
14
16
18
20
Reliance Other UTI
INTERPRETATION: 40% respondent for Reliance, 30%for UTI, 30% for other.
42

43. Q.7 which banking mutual fund offers you a large number of product & services?
Company Name Percentage of respondent
Reliance 18
Other 16
UTI 16
15
15.5
16
16.5
17
17.5
18
Reliance Other UTI
INTERPRETATION: 36% respondent for Reliance, 32%for UTI and 32% for other.
43

44. Q.8 Which banking mutual fund offer you a good e-mail facility?
Company Name Percentage of respondent
Reliance 22
Other 15
UTI 13
0
5
10
15
20
25
Reliance Other UTI
INTERPRETATION: 44% respondent for Reliance, 30% for other and 26% UTI.
44

45. Q.9 What is your Risk Profile?
0
10
20
30
40
50
60
70
INNOVATOR
MODERATE
RISK ADVERSE
INTERPRETATION :Innovator 20%,Moderate 15% and risk adverse 15%.
Q.10 What you feel about the company norms, documentation and formalities?
Highly satisfied 15
45
Innovator 20
Moderate 65
Risk adverse 15

46. Satisfied 25
Neutral 40
Dissatisfied 15
Highly dissatisfied 5
0
5
10
15
20
25
30
35
40
45
highly satisfied
satisfied
neutral
dissatisfied
highly dissatisfied
INTERPRETATION : Highly satisfied 15%,satisfied 25%,neutral 40% and highly
dissatisfied 5%.
46

47. Q.11 which mutual fund provides you better returns?
Reliance 50
Uti 30
Others 20
reliance
uti
others
INTERPRETATION :Reliance 50%,uti 30% and others 20%.
47

48. Conclusion Represented by pie chart
48
Reliance
41%
Other
30%
UTI
29%

49. FINDINGS:
In Equity Schemes we have taken Reliance Vision Fund and Reliance growth Fund. Both
schemes are open ended but Reliance Growth fund is more valuable for Reliance Mutual
Fund than reliance vision Fund.
In Dedt scheme we have taken Reliance money Manager Fund and Reliance Liquidity
Fund .In it both schemes are open ended but reliance money manager is more beneficial for
reliance mutual fund.
In sector specific scheme we have taken Reliance media and entertainment fund and Reliance
Pharma fund scheme both is more efficient for Reliance Mutual Fund.
Above all the schemes of Reliance Mutual Fund Debt schemes are best schemes for Mutual
Fund. There is a Good investment plan and saving scheme in reliance Mutual Fund.
49

50. CONCLUSION
• Mutual Fund investment is better than other raising fund.
• Reliance Mutual Fund have good returns in investment.
• 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 cons are concluded by that Reliance Money is still growing industry in India and
is still exploring its potential and prospects in here.
Mutual Funds now represent perhaps most appropriate investment opportunity for most
investors. As financial markets become more sophisticated and complex, investors need a
financial intermediary who provides the required knowledge and professional expertise on
successful investing. As the investor always try to maximize the returns and minimize the
risk. Mutual fund satisfies these requirements by providing attractive returns with affordable
risks. Risk takers for getting capital appreciation should invest in growth, equity schemes.
Investors who are in need of regular income should invest in income plans.
Reliance India mutual funds provide major benefits to a common man who wants to make his
life better than previous.
India's largest mutual fund, UTI, still controls nearly 80 per cent of the market. Also, the
mutual fund industry as a whole gets less than 2 per cent of household savings against the 46
per cent that go into bank deposits. Some fund managers say this only indicates the sector's
potential. "If mutual funds succeed in chipping away at bank deposits, even a triple digit
growth is possible over the next few years.
50

51. SUGGESTION
• Reliance Money and UTI have to add some extra features in it with aggressive
marketing promotional strategy.
• Advertisement on television is the main source of attraction so the company must
advertise its products heavily.
• Product must be improved.
• There should be provision of complain suggestion boxes at each branch.
51

52. QUESTIONNAIRE
Name: _________________ Age: ______
Occupation: ____________.
Q.1 are you an investor in mutual funds?
• Yes
• No
Q.2 what do you look before investing in a particular mutual fund scheme?
• Past performance (NAV)
• Asset management companies(AMC)
• Ratings (by CRISIL, ICRA, etc.)
• Expert advice
Q.3 how is your invested pattern?
• Monthly
• Once in six months
• Once in year
52

53. • Very rare
Q.4 which banking mutual fund do you prefer for mutual Fund?
• Reliance Money
• UTI
• OTHER
Q.5 Which banking mutual fund offer you good investment plan?
• Reliance Money
• UTI
• OTHER
Q.6 Which banking mutual fund offer a lot of tax saving?
• Reliance Money
• UTI
• OTHER
Q.7 Which banking mutual fund offers you a large number of product & services?
• Reliance Money
• UTI
53

54. • OTHER
Q.8 which banking mutual fund offers you a good e-mail facility?
• Reliance Money
• UTI
• OTHER
Q.9 what is your risk profile?
• Innovator
• Moderate
• Risk adverse
Q.10 what you feel about the company norms, documentation and formalities?
• Highly satisfied
• Satisfied
• Neutral
54

55. • Dissatisfied
• Highly dissatisfied
Q.11 what you say which provides better return?
• Reliance
• Uti
• others
55

56. BIBLIOGRAPHY
__________________________________________________________________________
REFERENCE BOOK:
• Gordon and Natarajan-FINANCIAL MARKET AND SERVICES-EDITION-2010
BHALLA V.K- INVESTMENT MANAGEMENT-Goyal publications-EDITION 2014
• Kothari- Research Methodology –RBD-EDITION-2009
WEBSITE:
• www.mutualfundindia.com
• www.indiamarkets.com
• www.utimf.com
• www.reliancemutual.com
• www.amfiindia.com
• www.karvy.com
• www.sebi.gov.in
• www.moneycontrol.com
56

57. MAGAZINES:
• Business Today
• Business Standard
• AMFI Journal
• Mutual Fund Quarterly Report.
57

58. 58