SUMMER INTERNSHIP PROJECT REPORT

A STUDY ON
RELIANCE MUTUAL FUNDS

UNDER THE GUIDANCE OF

INDUSTRIAL GUIDE: INTERNAL GUIDE:

Mr. Mukesh Kumar Prof. Sachin
Kumar (Unit Manager)

BY
SHIVANGI SINGH
BATCH OF 2018-19
Enrollment No 0161MBA092
BBK DAV COLLEGE FOR WOMEN’S, AMRITSAR
 CERTIFICATE

This to certify that Ms. SHIVANGI SINGH BVOC(BANKING AND

FINANCE)2-Semester ,BBK DAV COLLEGE FOR WOMEN, AMRITSAR
has done project on “Reliance Mutual funds “and has successfully
completed his project on “Reliance Mutual Fund “
This report is completed under my supervision .It is only for
academic purpose and is a bonafide work done by researcher .

Project Guide
[Link] Rajput
FACULTY
BBK DAV COLLEGE FOR WOMEN’S,
AMRITSAR
 DECLARATION

I SHIVANGI SINGH do here by declare that the project work

entitle on the “reliance mutual Fund in India “at Amritsar is
the original work done by me .

This project report presented as a partial fulfilment

requirement for the degree of Bvoc(banking and finance).

SHIVANGI SINGH
Bvoc (banking and finance)
Semester-2
 ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to

various people who have shared their valuable time and
made possible this project ,through their direct indirect
cooperation .

My honourable Mam Mrs. Mandeep Sodhi (HOD) and

Mrs. Anjana Bedi (Faculty)BBK DAV COLLEGE for Women’s
(Amritsar),for allowing me to work on this project and
provide necessary help.

I thank my respected faculties ,dear friend & colleagues

,who help me in every possible ways , support me and
encouraged me to explore new dimensions.

Shivangi Singh
BBK DAV College for
Women’s
Amritsar
INTRODUCTION TO BANKING
A bank is a financial institution that provides banking and other financial services
to their customers. A bank is generally understood as an institution which provides
fundamental banking services such as accepting deposits and providing loans. There are
also nonbanking institutions that provide certain banking services without meeting the
legal definition of a bank. Banks are a subset of the financial services industry. A banking
system also referred as a system provided by the bank which offers cash management
services for customers, reporting the transactions of their accounts and portfolios,
throughout the day. The banking system in India should not only be hassle free but it
should be able to meet the new challenges posed by the technology and any other external
and internal factors. For the past three decades, India’s banking system has several
outstanding achievements to its credit.
The Banks are the main participants of the financial system in India. The Banking
sector offers several facilities and opportunities to their customers. All the banks
safeguards the money and valuables and provide loans, credit, and payment services, such
as checking accounts, money orders, and cashier’s cheques. The banks also offer
investment and insurance products. As a variety of models for cooperation and
integration among finance industries have emerged, some of the traditional distinctions
between banks, insurance companies, and securities firms have diminished. In spite of
these changes, banks continue to maintain and perform their primary role is accepting
deposits and lending funds from these deposits.
 MEANING OF BANKING
 Banking is an industry that handles cash, credit, and other financial transactions.
Banks provide a safe place to store extra cash and credit. They offer savings
accounts, certificates of deposit, and checking accounts. Banks use these deposits to
make loans. These loans include home mortgages, business loans, and car
[Link] can be defined as the business activity of accepting and safeguarding
money owned by other individuals and entities, and then lending out this money in
order to earn a profit. However, with the passage of time, the activities covered by
banking business have widened and now various other services are also offered by
banks. The banking services these days include issuance of debit and credit cards,
providing safe custody of valuable items, lockers, ATM services and online transfer of
funds across the country .bank is a financial institution licensed to receive deposits
and make loans. Banks may also provide financial services, such as wealth
management, currency exchange, and safe deposit boxes. There are two types of
banks: commercial/retail banks and investment banks. In most countries, banks are
regulated by the national government or central [Link] is a financial institution
licensed to receive deposits and make loans. Banks may also provide financial
services, such as wealth management, currency exchange, and safe deposit boxes.
There are two types of banks: commercial/retail banks and investment banks. In
most countries, banks are regulated by the national government or central bank.
FUNCTIONS OF BANKING

The functions of banks are briefly highlighted in following Diagram or chart.

. Primary Functions of Banks ↓

The primary functions of a bank are also known as banking functions. They are the main
functions of a bank.
These primary functions of banks are explained below
[Link] of Deposit :The bank collects deposits from the public. These deposits can be of
different types, such as :
Saving Deposits
Fixed Deposits
Current Deposits
Recurring Deposits
a. Saving Deposits
This type of deposits encourages saving habit among the public. The rate of interest is low.
At present it is about 4% p.a. Withdrawals of deposits are allowed subject to certain
restrictions. This account is suitable to salary and wage earners. This account can be opened
in single name or in joint names.

b. Fixed Deposits
Lump sum amount is deposited at one time for a specific period. Higher rate of interest is
paid, which varies with the period of deposit. Withdrawals are not allowed before the expiry
of the period. Those who have surplus funds go for fixed deposit.
c. Current Deposits
This type of account is operated by businessmen. Withdrawals are freely allowed. No
interest is paid. In fact, there are service charges. The account holders can get the benefit of
overdraft facility.
d. Recurring Deposit
This type of account is operated by salaried persons and petty traders. A certain sum of
money is periodically deposited into the bank. Withdrawals are permitted only after the
expiry of certain period. A higher rate of interest is paid.
2. Granting of Loans and Advances
The bank advances loans to the business community and other members of the public. The
rate charged is higher than what it pays on deposits. The difference in the interest rates
(lending rate and the deposit rate) is its profit.
The types of bank loans and advances are :-
Overdraft
Cash Credits
Loans
Discounting of Bill of Exchange
a. Overdraft
This type of advances are given to current account holders. No separate account is
maintained. All entries are made in the current account. A certain amount is sanctioned as
overdraft which can be withdrawn within a certain period of time say three months or so.
Interest is charged on actual amount withdrawn. An overdraft facility is granted against a
collateral security. It is sanctioned to businessman and firms.
b. Cash Credits
The client is allowed cash credit up to a specific limit fixed in advance. It can be given to
current account holders as well as to others who do not have an account with bank.
Separate cash credit account is maintained. Interest is charged on the amount withdrawn in
excess of limit. The cash credit is given against the security of tangible assets and / or
guarantees. The advance is given for a longer period and a larger amount of loan is
sanctioned than that of overdraft.
c. Loans
It is normally for short term say a period of one year or medium term say a period of five
years. Now-a-days, banks do lend money for long term. Repayment of money can be in the
form of instalments spread over a period of time or in a lump sum amount. Interest is
charged on the actual amount sanctioned, whether withdrawn or not. The rate of interest
may be slightly lower than what is charged on overdrafts and cash credits. Loans are
normally secured against tangible assets of the company.
d. Discounting of Bill of Exchange
The bank can advance money by discounting or by purchasing bills of exchange both
domestic and foreign bills. The bank pays the bill amount to the drawer or the beneficiary
bill by deducting usual discount charges. On maturity, the bill is presented to the drawee or
acceptor of the bill and the amount is collected.
square B. Secondary Functions of Banks ↓
The bank performs a number of secondary functions, also called as non-banking functions.
These important secondary functions of banks are explained below.
1. Agency Functions
The bank acts as an agent of its customers. The bank performs a number of agency functions
which includes :-
Transfer of Funds
Collection of Cheques
Periodic Payments
Portfolio Management
Periodic Collections
Other Agency Functions
INTRODUCTION TO MUTUAL FUNDS

There are a lot of investment avenues available today in the

financial market for an investor with an invest able 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.

Like most developed and

developing countries the mutual fund cult has been catching
on in India. The reasons for this interesting occurrence are:

1. Mutual funds make it easy and less costly for investors to

satisfy their need for capital growth, income and/or income
preservation.

2. Mutual fund brings the benefits of diversification and

money management to the individual investor, providing a
Opportunity for financial success that was once available only
to a select few.

HISTORY

Unit Trust of India is the first Mutual Fund set up under a

separate act, UTI Act in 1963, and started its operations in
1964 with the issue of units under the scheme US-641. In 1978
UTI was delinked from the RBI and Industrial Development
Bank of India (IDBI) took over the
Regulatory and administrative control in place of RBI.

In the year 1987 Public Sector banks like State Bank of India,
Punjab National Bank, Indian Bank, Bank of India, and Bank of
Baroda have set up mutual funds.

Apart from these above mentioned banks Life Insurance

Corporation [LIC] and General Insurance Corporation [GIC] too
have set up mutual fund. LIC established its mutual fund in
June [Link] GIC had set up its mutual fund in December
[Link] mutual fund industry had assets under
management of Rs. 47,004 crores.

With the entry of Private Sector Funds a new era has started
in Mutual Fund Industry [e.g.:- Principal Mutual Fund.]
 Mutual Fund Regulations

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.

Types of MutualFunds Scheme in India

Wide variety of Mutual Fund Schemes exist to cater to the

needs such as financial position, risk tolerance and return
expectations etc. The table below gives an overview into the
existing types of schemes in the Industry.
 By Structure
o Open - Ended Schemes

o Close - Ended Schemes

 o Interval Schemes
 By Investment Objective
o Growth Schemes

o Income Schemes

o Balanced Schemes

o Money Market Schemes

 Other Schemes
o Tax Saving Schemes

o Special Schemes

 Index Schemes

 Sector Specfic

ADVANTAGES OF MUTUAL FUNDS

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.

Diversification

The nuclear weapon in your arsenal for your fight

against Risk. It simply means that you must spread your
investment across different securities (stocks, bonds, money
market instruments, real estate, fixed deposits etc.) and
different sectors (auto, textile, information technology etc.).

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%.

Regulations

Securities Exchange Board of India (“SEBI”), the mutual

funds regulator has clearly defined rules, which govern mutual
funds. These rules relate to the formation, administration and
management of mutual funds and also prescribe disclosure
and accounting requirements. Such a high level of regulation
seeks to protect the interest of investors

Affordability

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

shares, etc. depending upon the investment objective of the
scheme. Azn investor can buy in to a portfolio of equities,
which would otherwise be extremely expensive

Features related mutual funds

 Reliance was the first fund house to launch sector

funds with flexibility to invest in a range of 0% to 100%
in either equity or debt instruments.

 Mutual fund investments linked to an ATM/debit card

a Reliance innovation India’s first long-short fund
comes from Reliance Mutual Fund .

 As at 31st May 2008, more than 6.6 million people had

invested in Reliance Mutual Fund;the investments
comprised 16% of the country’s entire mutual fund.
 COMPANY PROFILE OF RELIANCE

RELIANCE INDUSTRIES LIMITED

Reliance Group Holdings has grown from a

small office data-processing equipment firm in 1961 into a
major insurance and financial-services group in one
generation under one chief.
Reliance's insurance operations constitute the
nation's 27th-largest property and casualty operation. The
parent company also includes a development subsidiary in
commercial real estate. Reliance's international consulting
group contains several subsidiaries in energy, environment,
and natural resources consulting. A financial arm invests in
other businesses, primarily television stations.

Reliance Insurance started as the Fire Association of

Philadelphia in 1817, organized by 5 hose and 11 engine fire
companies. It became the nation's first association of
volunteer fire departments.

Business got a boost as a result of the Great

Chicago Fire of [Link] association soon developed a field of
agents to write policies across the country. For the first two
years, shareholders received dividends twice a year of $5 a
share, which increased gradually to $10 in 1876.

In 1972, the Reliance insurance group divided its pool

so that Reliance Insurance Company and its
subsidiaries handled most standard lines, while United Pacific
Insurance Company handled the nonstandard and other
operations.

In 1977, the company moved into real estate,

forming Continental Cities Corporation, which became
Reliance Development Group, Inc. This division handled all
real estate operations of the parent company and other
subsidiaries.
 Reliance Capital Group, L.P. constituted the
investment branch of the Reliance conglomerate.

In December 1989, Reliance Capital sold its investment, Days

Corporation, parent company of Days Inn of America, the
world's third-largest hotel chain; it had been purchased in
1984.
Reliance Industries Limited. The Group's
principal activity is to produce and distribute plastic and
intermediates, polyester filament yarn, fibre intermediates,
polymer intermediates, crackers, chemicals, textiles, oil and
gas. The refining segment includes production and marketing
operations of the Petroleum refinery. The petrochemicals
segment includes production and marketing operations of
petrochemical products namely, High and Low density
Polyethylene.
Dhirubhai Ambani founded Reliance as a textile company and
led its evolution as a global leader in the materials and energy
value chain businesses.

He is credited to have brought about the equity cult in India in

the late seventies and is regarded as an icon for enterprise in
India. He epitomized the spirit 'dare to dream and learn to
excel'.
The Reliance Group is a living testimony to his indomitable
will, single-minded dedication and an unrelenting
commitment to his goals.

This groupdominates this key areain the financial

sector..This megabusiness houses show that it has
assetsunder management ofRs. 90,938 crore(US$ 22.73
billion) andan investor base of over6.6 million
(Source:[Link]).Reliance’s mutual fundschemes
are managed by Reliance Capital Asset Management
LimitedRCAM), a subsidiary of
Reliance Capital Limited, which holds 93.37% of the paid-up
capital of RCAM.
The company notchedup a healthy growth
ofRs. 16,354 crore(US$ 4.09 billion)in assets under
management in February2008 and helped propelthe total
industry-wideAUM to Rs. 565,459 crore (US$ 141.36
billion)(Source: [Link]). A sharp rise infixed
maturity plans (FMPs) and collection ofRs. 7000 crore (US$
1.75 billion) through newfound offers (NFOs) created this
surge. In AUrankings, Reliance continues to be in the number
one spot.

India's Best Offering: Reliance Mutual Fund

Investing has become global. Today, a lot of
countries are waking up to the reality that in order to gain
financial growth, they must encourage their citizens to
not only save but also invest. Mutual funds are fast
becoming the mode of investment in the world.

In India, a mutual fund company called the Reliance

Mutual Fund is making waves. Reliance is considered
India's best when it comes to mutual funds. Its investors
number to 4.6 billion people. Reliance Capital Asset
Management Limited ranks in the top 3 of India's banking
companies and financial sector in terms of net value.

The Anil Dhirubhai Ambani Group owns Reliance; they

are the fastest growing investment company in India so
far. To meet the erratic demand of the financial market,
Reliance Mutual Fund designed a distinct portfolio that is
sure to please potential investors. Reliance Capital Asset
Management Limited manages RMF.

Vision And Mission

Reliance Mutual Fund is so popular because it is investor
focused. They show their dedication by continually
dishing out innovative offerings and unparalleled service
initiatives. It is their goal to become respected globally for
helping people achieve their financial dreams through
excellent organization governance and customer care.
Reliance Mutual fund wants a high performance
environment that is geared at making investors happy.

RMF aims to do business lawfully and without stepping

on other people. They want to be able to create portfolios
that will ensure the liquidity of the investment of people
in India as well as abroad. Reliance Mutual Fund also
wants to make sure that their shareholders realize
reasonable profit, by deploying funds wisely.

Schemes
 To make their packages more attractive, Reliance Mutual
Fund created proposals called The Equity/ Growth
scheme, Debt/Income Scheme, and Sector Specific
Scheme.

i. Debt/Income Scheme, and Sector Specific Scheme.

The Equity/ Growth scheme give medium to long

term capital increase. The major part of the investment is
on equities and they have fairly high risks. The scheme
gives the investors varying options like, capital
augmentation or dividend preference. The choices are
not deadlocked because if you want you may change the
options later on.

Providing steady and regular income is one of the

Debt/Income Scheme's primary goals. The Debt/Income
scheme has in its portfolio government securities,
corporate debentures fixed income securities, and
bonds. returns on Sector Specific Scheme are
dependent on the performance of the industry at which
your money is invested upon. Compared to diversified
funds this is a lot more risky and you will need to really
give your time on observing the market.

Although RMF is gaining good ground in the financial

market, remember that they are a risk taking bunch. They
give higher profit because they take a lot of risks. So, if
 you are faint hearted, then Reliance Mutual Fund is not
for you.

1. What are Reliance mutual funds?

One of the fastest growing mutual funds in India, Reliance Mutual Fund was
incorporated in 1995 and has been performing strongly since with its presence in
over 160 cities in India. The fund house deals in 5 main fund classes, namely, Equity
Funds, Debt Funds, Retirement Funds, Gold Funds and Liquid Funds. There are
over 200 schemes available under RMF and over 800 scheme options for investors
to choose from. To offer its investors an all-round product portfolio, RMF offers
innovative products that meet the investing needs of the investors.
It is one of the top mutual funds in India, founded as a trust under the Indian Trusts
Act, 1882, where Reliance Capital Limited (RCL) was its Sponsor/Settler and
Reliance Capital Trustee Co. Limited (RCTC) its Trustee.

2. How to invest
Whether you are a seasoned investor or a novice in this area, investing in Reliance
Mutual Funds is made very simple with ClearTax.. You can visit ClearTax to pick
from a diverse list of handpicked funds that are designed keeping in mind the risk
profile and investment objective of investors. You can be assured of a hassle-free
quick process of selecting any product from your favorite fund house – Reliance
Mutual Fund, with 5. This requires just one KYC formality that will take not more than
7 minutes of your [Link] makes simple investing for you.
The process is very simple on ClearTax.
Step 1: Select the fund(s) and the amount you want to invest every month
Step 2: Provide your details
Step 3: Make payment and you are done

3. Process and Documents required to

invest in Reliance Mutual Funds via Clear
Tax
Money laundering and corruption can cripple the economy and the stability of our
country. Here, Know Your Customer (KYC) and In-Person Verification (IPV) can help
a financial institution significantly. However, ClearTax doesn’t believe in
inconveniencing their investors. So they have enabled a way to do KYC in a quick
and simple way. What’s more, if investing via ClearTax Save, investor needs to do it
only once for their first investment.
KYC is necessary for all fund houses. If you are investing through ClearTax, you
need to do your KYC just once. The same KYC will be used for all your future
investments.
KYC verification through ClearTax is a very simple process. You can verify by:
a. Using OTP sent to your Aadhaar-registered mobile number
b. By uploading photos/scans of the required documents
ID Proofs: You can submit Xerox copy of PAN Card, Passport, Aadhaar Card, Voter
ID or Driving License. Other central government approved documents like NREGA
job card are also accepted.
Residential proofs: You can submit the same ID proof (except PAN), if the address
on it is your current residential address. Rental/lease agreement, most utility bill and
ration card can also serve the purpose. If your permanent address and
correspondence address are not the same, then submit proof for both.

4. List of top 5 RMF

Top 5 RMF 1yr Return 3yr Return 5yr Return 10yr Return

Reliance Annual Interval Series I Inst 0.64 7.47 7.89

Reliance Annual Interval Series I Retail 6.64 7.47 7.89 7.97

Reliance Arbitrage Fund 6.24 6.26 7.38

Reliance Banking & PSU Debt Fund 4.93 7.52 – –

Reliance Banking Fund 8.64 13.67 17.09 16.64

5. Top 5 RMF EQUITY Funds

RMF Equity Funds are medium to high risk funds invested in stocks and equities that
offer investors dynamic returns on their investments. The schemes are designed for
long term capital appreciation and are curated to meet investment needs based on
individual risk appetite.
 Equity Fund Name Risk 5-yr
Return

Reliance Vision Fund Moderately 14.1 The objective of the scheme is to offer long term growth
High

Reliance Large Cap Fund Moderately 16.8 The scheme aims to generate long term capital apprecia
High guarantee that the investment objective of the Scheme

Reliance Quant Fund High 11.27 The aim of the scheme is to generate capital appreciatio
achieved.

Reliance Balanced Moderately 13.42 To capitalize on the potential upside in equity markets w
Advantage Fund High There is no guarantee that the investment objective of t

Reliance Index Fund – Nifty Moderately 11.59 The scheme seeks to mirror the composition of the Nift
Plan High

6. Top 5 RMF TAX-SAVING EQUITY Funds

The RMF Tax Saving Funds are also known as Equity LInked Saving Schemes that
help investors save taxes under Section 88 of the Income Tax Act.

Tax Saving Fund Name Risk 5-yr Return

Reliance Tax Saver (ELSS) Fund Moderately High 18.55 The main purpose of the scheme is to offer long-t

7. Top 5 RMF DEBT Funds

The RMF Debt Funds are designed to function as tax saving instruments that offer
investors medium returns with much more safety and reliability in comparison
to equity funds.

Debt Fund Name Risk 5-yr Return

Reliance Floating Rate Fund Moderately Low 7.6 The scheme seeks to generate regular income by inv

Reliance Low Duration Fund Moderately Low 8.13 The scheme generates high returns that are consiste
 Reliance Prime Debt Fund Moderate 8.05 This scheme investments primarily in debt instrume

Reliance Short Term Fund Moderately Low 7.62 The scheme offers stable returns to investors with a

Reliance Credit Risk Fund Moderate 8.31 This scheme seeks to generate high returns with mo

8. Top 5 RMF HYBRID Funds

The RMF Hybrid Funds are aimed at delivering risk adjusted returns by means of
investing in a combination of fixed income instruments and equities. It optimizes the
advantage of pairing the growth potential of equities with the relative stability that is
offered by income investments.

Hybrid Fund Name Risk 5-yr

Return

Reliance Equity Hybrid Fund Moderately 16.28 The prime focus of this plan is to offer lon
High

Reliance Arbitrage Fund Moderately 7.38 This scheme generates income by taking a
Low

Reliance Hybrid Bond Fund Moderately 8.89 The scheme seeks to generate a regular s
High

Reliance Retirement Fund – Income Moderately 5.81 (3yr The investment objective of this scheme i
Generation Scheme High ) income securities. Again, there is no guara

9. About RMF
Reliance Mutual Fund (RMF) is one of India’s top mutual funds. It falls under The
Reliance Anil Dhirubhai Ambani (ADA) group, which was founded as Trust under the
Indian Trusts Act, 1882. It has Reliance Capital Limited (RCL) as its Sponsor/Settler
and Reliance Capital Trustee Co. Limited (RCTC) as its Trustee. Reliance Mutual
Fund registered itself with the SEBI (Securities & Exchange Board of India) on June
30, 1995, with its registration number as MF/022/95/1. Reliance Capital Mutual Fund
was renamed to Reliance Mutual Fund w.e.f March 11, 2004, vide, Securities &
Exchange Board of India’s letter no. IMD/PSP/4958/2004, dated March 11, 2004.
The RMF was formed to launch a number of schemes under which the units would
be issued to its investors to contribute to the capital market and allow investors to
invest in diversified securities. The schemes are managed by Reliance Capital Asset
Management Limited., a subsidiary of Reliance Capital Limited
Reliance Capital Limited is the Sponsor while the Trustee is Reliance Capital Trustee
Co. Limited. The Sponsor, the Trustee and the Investment Manager are incorporated
under the Companies Act 1956. Reliance Mutual Fund which was formerly known as
Reliance Capital Mutual Fund, is a Trust under Indian Trust Act, 1882 and is
registered with SEBI, the registration number being MF/022/95/1 dated June 30,
1995.
There are many benefits of investing in Reliance Mutual Funds:

 The schemes offered under the RMF offer investors benefits on a wide selection of
investment instruments
 The Reliance fund house has over 20 years experience in mutual funds
 The distribution network of RMF is extensive and spans across the country
 The customer service of RMF one of the best in the industry
 Reliance Mutual Funds are considered to be the pioneers in the mutual fund industry

Pure

THE MAIN OBJECTIVES OF

RMF ARE
01
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;
02
To deploy funds thus raised so as to help the unit holders earn
reasonable returns on their savings; and
03
To take such steps as may be necessary from time to time to
realise the effects without any limitation.
 Achievements

In two successive joint surveys by The Economic Times’ Brand

Equity and ACNielsen, Reliance was recognised as India’s Most
Trusted Mutual [Link] away with
seven other scheme prizes – five of them being outright
winners – in the Gulf 2007 Lipper Awards. These included the
Fund House of the Year by Lipper GCC as well asICRA Online
and the Most Improved Fund House by Asia Asset
Management. It also received the NDTV Business Leadership
Award 2007 in the mutual fund category and runners’ up
recognition as the Best Fund House in the Outlook Money-
NDTV Profit Awards. In addition, the company received the
coveted CNBC Web18 Genius of the Web distinction for the
Best Mutual Fund Website in the country. RCAM was awarded
the India Onshore Fund House 2008 instituted by the Asian
Investor magazine. The company also won the India Equities
award in the 5-yearPerformance category.
 GROWTH OF RELIANCE MONEY THROUGH RECOGNITION

Growth through Recognition

Reliance has merited a series of awards and recognitions for excellence for businesses and
operations.

Corporate Ranking and Ratings:

Reliance featured in the Fortune Global 500 list of ‘World’s Largest Corporations’ for the
fourth consecutive year.

 Ranked 269th in 2007 having moved up 73 places from the previous year.

 Featured as one of the world’s Top 200 companies in terms of Profits.

 Among the top 25 climbers for two years in a row.

 Featured among top 50 companies with the biggest increase in Revenues.

 Ranked 26th within the refining industry.

Reliance is ranked 182nd in the FT Global 500 (up from previous year’s 284th rank).

 PetroFed, an apex hydrocarbon industry association, conferred the PetroFed 2007

awards in the categories of “Refinery of the Year” and “Exploration & Production -
Company of the Year”.

 Brand Reliance was conferred the “Bronze Award” at The Buzziest Brands Awards
2008, organized by agencyfaqs!

 Institute of Economic Studies conferred the “Udyog Ratna” award in October 2007
for contributions to the industry.

 Chemtech Foundation conferred the “Hall of Fame” in February 2008 for sterling
contributions to the industry.

 Chemtech Foundation conferred the “Outstanding Achievement - Oil Refining” for

work at the Jamnagar Manufacturing Division.

Petroleum Federation of India conferred the “Refinery of the Year Award - 2007” to
Jamnagar Manufacturing Division
  “The Plastics Export Promotion Council - PLEXCOUNCIL Export Award” in the
category of Plastic Polymers for the year 2006-2007 was awarded to Reliance being
the largest exporter in this category.

Systematic Investment Plan

systematic investment plan, commonly called an SIP, is a Godsend to those who
wish to multiply their wealth intelligently and efficiently, without putting too much of it
at stake at any given time.
Simply put, a SIP is nothing but a plan through which a fixed amount of money is
invested into a mutual fund scheme at fixed intervals, for a fixed or variable duration
of time (depending on the type of plan/fund scheme). In SIPs, instructions to
increase/decrease the value of the monthly instalment, start/stop at predetermined
intervals, etc. can also be given.
What is SIP?
SIP or Systematic Investment Plan is a method of investing in mutual funds. Under the
SIP investment method, an investor picks a mutual fund scheme and decides to invest
a certain fixed amount at fixed intervals. Investing in one scheme through small
instalments over time (rather than with a large amount at once) is Systematic
Investment Planning.
For example: Mr. Anand wishes to invest ₹25,000 in a mutual fund, but does not have
this amount ready to invest at the moment. Mr. Anand can invest ₹2,500 per month
for the next 10 months, so the eventual total value of his investment will be ₹25,000.
In this way, Mr. Anand has fulfilled his investment goal and also gained many benefits
- such as Rupee Cost Averaging, budgeting, etc. (which are explained below). This
method of investing a fixed amount over time for a particular goal through a particular
mutual fund is called Systematic Investment Planning or SIP.
How does SIP work?
The simplest way to understand the basic workings of SIPs is to imagine a child and
a piggy bank. The child ‘deposits’ a certain amount at certain intervals and before he
knows it, the contents of the piggy bank have built up to a respectable amount.
In the same way, a systematic investment plan deposits a certain amount of money,
which could be as low as ₹500 or as high as the investor wishes, at certain fixed
intervals of time, which could be a week, a month, an annual quarter, etc., and allows
this amount to build up over time. The biggest difference between the piggy bank and
the SIP, however, is the fact that SIPs don’t just keep the money aside for you, but
also invest that money into profitable businesses and give you a share of the earnings.
Also, with every periodic investment, the amount being reinvested keeps growing
larger - which means that returns on the investments grow larger as well.
It’s up to the investor to decide whether he/she wishes to receive these investment
returns in a periodic format, or as a lump sum at the end of the SIP’s tenure, when the
investment matures. Of course, the detailed workings of a systematic investment plan
that invests in mutual funds are a bit more complex and they sometimes speak a
different language, but understanding the different types of SIPs can help patient
investors reap massive rewards.
Why Invest in SIP?
There are many reasons as to why investors prefer investing in mutual funds through
SIP, the benefits of SIP are listed below:

1. Rupee Cost Averaging: SIP investments facilitate a phenomenon called

Rupee Cost Averaging. To understand it, let’s first see how mutual funds are
purchased and held as investments with an example:

In October 2018, Mr. Anand has ₹60,000 on hand to invest into a mutual fund
scheme. He has two options: lump sum or SIP.

Lump sum: He decides to invest it all at one go in October. He goes online,

signs up with an online mutual fund investment platform and purchases ‘Units’
of a fund in exchange for his money. These ‘mutual fund units’ represent his
ownership of the fund. Let’s assume the NAV in October is ‘200’ and Mr. Anand
received 300 units for his ₹60,000 lump sum investment.

SIP: In the same scenario where the NAV in October is ‘200’. Mr. Anand
purchased 100 units for ₹20,000. In November, the NAV rose to ‘250’ and Mr.
Anand’s next investment of ₹20,000 fetched him only 80 units - for the same
price. In December, the NAV dropped to ‘100’ and his ₹20,000 gets him 200
 units. So through SIPs, Mr. Anand’s ₹60,000 has bought him a total of 380 units
only because of the fluctuating market.

So, for ₹60,000 in total, Mr. Anand received 300 units through lump sum
investing at a cost of Rs 200 per unit and 380 units through SIP at an average
cost of Rs 157.9. Through SIP, Mr. Anand has the benefit of owning a greater
number of fund units because of Rupee Cost Averaging. The cost of funds
averaged over time, giving Mr. Anand more units for the same investment
amount.

In reality, the NAV of mutual fund schemes rises and drops on a daily basis, and savvy
investors get ahead of the game and own more mutual fund units through planning their
investments around NAV fluctuations. The NAV of all funds rises and drops based on the
performance of its investments. ‘Mutual Fund Units’ represent an investor’s share of
ownership in a particular fund and form the basis on which the mutual fund is
traded with the investor. When the fund’s investments are doing well, the price
of Units increases. This means that the Net Asset Value (NAV) of the fund has
increased.

2. Minimizes risk: Investing small amounts on a monthly basis rather than one
large amount at once means that the investments can be stopped at any time
the investor desires. In the rare and unfortunate event that a well-performing
fund has a change in fund manager, or a risky investment doesn’t pan out well,
or the fund displays below average returns for an extended time, the investor
can simply stop investing. The SIP can simply be stopped and the investment
can be to another well-performing fund to recoup any negative returns.

3. Compounding: Earnings in a mutual fund scheme invested through SIP are

added back to the investment itself, thus increasing its value. As subsequent
investments are made through the course of the investment term, the total value
is allowed to keep on growing by adding earnings to itself, to allow for greater
growth.

4. Budgeting: The importance of proper periodical financial planning cannot be

understated. Many would-be investors earn more than enough to invest and
multiply their wealth, but because of inadequate financial planning, don’t save
enough to invest. Strict monthly budgeting can allow for huge amounts to be
earned through investing very little. Systematic investment plans with standing
instructions in one’s bank account can take the old saying ‘a penny saved is a
penny earned’ to a whole new level.
 5. Financial discipline: By establishing that an investment has to be made every
month, a person can establish financial discipline. This is nothing but being
disciplined and attentive when handling one’s money - a trait that is, by and
large, lacking in modern India. A typical salaried corporate employee between
25-30 years of age typically realises far too late that he/she regularly spends
way too much on non-vital and largely unnecessary things. Once this realisation
happens, more importance is given to saving and spending only on the
essentials. With an SIP, a positive expense is listed as a recurring month-on-
month investment. By allocating funds separately for this, the remaining income
is divided among vital expenses in a planned and disciplined way.

6. Convenience: There is no reason for investors to go out of their way to invest

in SIPs. The amount is automatically deducted from the investor’s bank account
at a particular date every month. The state of the investment, its returns being
generated, etc. can all be tracked online in an efficient and informative
dashboard like the one in the Funds India mobile app. Investors can also simply
sign and submit post-dated cheques set at the required investment frequency
to ensure that regular investments are being made.

It is for these reasons, among many others, that the SIP investment route is
preferred over the lump sum investment route.

How to start investing in SIP online?

Investing in mutual funds through SIP online is faster, easier, and more efficient than
the traditional way. The online SIP investment route doesn’t require a ton of paperwork
or frequent trips to an office for signatures. Investors simply register with their email
ID and phone number and submit digital copies of ID/address proof online. A secure
account is then created and the investor can pick and choose the ideal fund, as all the
information is readily available online on FundsIndia itself. What’s more, FundsIndia
has a dedicated team of award-winning investment advisors to suggest funds best
suited to an investor’s individual needs.

Traditionally, SIP investments required a large amount of paperwork and frequent trips
to the fund house, bank, or AMC. But today, SIP investments can be started within a
couple of hours in an entirely paperless and fully secure online environment.

To get started, one must meet the eligibility criteria to invest in SIPs in India, which
is as follows:

1. The investor must be an Indian Resident, Non-Resident Indian (NRI), or Person

of Indian Origin (PIO) who resides abroad on a full repatriation basis.
2. The investor must be over the age of 18.
 3. The investor must own a bank account with the requisite funds.
4. The investor must be sure that the SIP instalment amount will be readily
available before the investment date.

One must also gather the required to invest in SIPs in India:

1. Proof of identity: A copy of any of the following documents can be submitted

as ID proof:
a. PAN Card
b. Passport
c. Driver’s License
d. Voter’s ID
2. Proof of address: A copy of any of the following documents can be submitted
as address proof:
a. PAN Card
b. Driver’s License
c. Voter’s ID
d. Rental/Purchase Agreement

How to invest in SIP?

Follow these steps to start investing in SIPs:
Step 1: Log on to [Link] create your free account
Step 2: Submit the required documents online - either scan or send a picture of the
required KYC documents for verification
Step 3: A mutual fund advisor will call you and help you zero in on the best scheme
suited to your individual needs and risk-taking ability
Step 4: Set up the SIP investment by choosing an amount and frequency -
the amount is ‘how’ much will be invested and the frequency is ‘how often’ it will be
invested (weekly, monthly, etc.)
Step 5: Track your investments on the interactive online dashboard either on a PC or
through the smartphone app
Step 6: Sit back and watch your money grow!
When to invest in SIP?
This is a very common question and the answer is - “whenever you’re ready”. There
is no ideal time of year/season/market condition to start investing in a mutual fund
scheme through SIPs, as one of the primary benefits of SIP is the fact that they can
minimize the negative impact of market forces over time. SIP investments can be
started at any time with minimal risk, provided the scheme chosen is the right fit for
the investor. Different schemes appeal to different investors and finding the right
scheme for you is as important as the investment itself. For this, FundsIndia has a
team of expert market analysts and award-winning investment advisors to help guide
investments in the right direction.
The best time to invest in an SIP is as soon as you’ve found the best mutual fund scheme that
fulfils all your requirements. Investing as early as possible in SIPs has proven to yield the best
results.

Best SIP Plans to Invest in 2019

Scheme name 3 YEARS RETURNS 5 YEARS RETURNS

SBI Blue Chip Fund Growth 10.77% 14.93%

 Scheme name 3 YEARS RETURNS 5 YEARS RETURNS

Franklin India Equity Fund Growth 10.63% 15.50%

Mirae Asset India Equity Fund Growth 16.62% 17.64%

HDFC Mid-Cap Opportunities Fund Growth 13.49% 18.37%

ICICI Peru Blue chip Fund Growth 13.92% 13.97%

SIP Calculator
SIP investments can be started at any time - if you wish to know the eventual total
value of a SIP - click here. This SIP calculator can show the total value that your
investments will gain over the years. Simply input your investment amount, tenure,
and rate of return. If you already have a financial goal that you're investing towards -
for example - if you need Rs.50,00,000 in 10 years to buy a house - this calculator can
show you how much you need to invest, and what rate of returns you'll need in order
to achieve your goal. Use these investment calculators to get a realistic idea of what
your investment will look like over the next few years.

*T&C apply calculator is for informational purposes only.

SIP FAQs
1. When is the best time to start investing in SIPs?

The earlier that one begins an investment in SIP, the better. This is primarily
due to the positive effect of compounding. Earnings on SIP investment are
added back to the investment itself and allowed to grow - enabling the positive
and powerful effects of compounding to take place. To make the most of a
Systematic Investment Plan, start as soon as possible.

For example, Mr. Anand wishes to purchase a house at the age of 40. He
invests just ₹17,000 per month in a mutual fund scheme through SIPs.
(assuming a CAGR of 11%)
 o - If he begins his investment at age 25, he will have earned roughly
₹78,00,000 by the time he’s 40.
o - If he begins his investment at age 27, just two years later, he will only
be able to earn ₹58,00,000 - a massive difference just because of a tiny
two-year delay.
o - Had Mr. Anand waited until age 30 to invest the same way, he would
only have earned roughly ₹37,22,000 by the time he’s 40 years old.
2. How much can I invest in SIP? What is the minimum and maximum
investment in SIP?

To begin investing in mutual funds through SIP, one must assess his/her
financial goals and the time in which those goals must be achieved.

SIP investments can be as low as ₹500 and as high as the investor wishes.
Whatever the chosen amount, it must be available in the investor’s account on
the SIP investment date. SIP investment dates are the dates on which the
chosen amount gets deducted from the investor’s account and added to the
mutual fund scheme in exchange for units. The frequency chosen by the
investor - i.e. the regular cycle on which he/she wishes to invest - can be
weekly, monthly, quarterly, biannually, etc., depending on the investor and
whether these options are offered by the AMC, bank, or fund house. Most SIPs
are invested in on a month-on-month basis - otherwise called a monthly
frequency.

3. Will fluctuating market conditions negatively affect my SIP?

Prevailing market conditions affect the way mutual fund schemes investments
perform, and this, in turn, affects the NAV or Net Asset Value of the scheme.

Market conditions will not negatively or positively affect an SIP investment due
to the fact that a fixed amount is invested in a certain frequency, despite the
current NAV. If the NAV is high in one month, the number of units purchased
will be lower; but when the NAV falls, the number of units purchased will be
higher. In this way, the number of units purchased for a fixed amount averages
out over time. This is the benefit of Rupee cost averaging through SIP.

4. Is SIP a risky investment?

SIPs are among the easiest and safest ways to invest in mutual fund schemes.
It removes the risk of buying at the wrong time when markets are high or not
buying when markets are cheap. SIP ensures that you invest through different
markets, therefore, minimizing timing risk. The inherent risk involved in mutual
fund investing comes from the investments the fund makes. There are high-risk
investments that offer the potential for high rewards, and low-risk investments
that keep the investment safe but offer returns at a far lower rate.
 SIPs are not a risky investment, but the mutual fund scheme in which they
invest could carry a greater amount of risk than an investor can handle.

5. Can the investment amount in SIP be increased and reduced?

The recurring amount being invested in an SIP cannot be reduced, but it can
be increased with online SIP schemes by simply intimating the fund house that
you wish to do so. An investor can also stop or close a particular SIP investment
and start another SIP investment in the same scheme at a lower or higher
recurring amount, as is necessary.

In most cases, additional investments can be made in a particular mutual fund

even if the investor has an SIP running for that particular scheme. A lump sum
investment can be made at any time in addition to the existing recurring SIP
investment, and this will increase the value of holding in that fund. The existing
SIP orders will not be affected.

6. What happens if I miss an SIP instalment or payment? Can I miss an SIP

instalment or payment?

Nothing happens to your SIP if you miss one SIP instalment. The SIP will only
be terminated or cancelled by the fund house if an investor misses/does not
pay 3 consecutive SIP instalments.

However, if the SIP instalments were being made through ECS - the bank from
which the amount is being auto-debited will penalize you for missing a payment.
The mutual fund house or AMC will not penalize you for a single missed
payment.

If you are aware that you will have to miss your next SIP instalment, you can
pause the SIP by informing the fund house/AMC and submitting a duly filled out
request form.

7. Do I have to pay anything to the distributor, broker, or investment advisor for

SIP? Is there a brokerage charged for SIP investments?

As per SEBI guidelines, mutual fund houses, AMCs, banks, etc. are no longer
allowed to charge an ‘Entry Load’. An Entry Load was a charge levied as a
percentage of the initial investment when buying into a mutual fund scheme.

Commission and brokerage are paid to brokers, distributors, and investment

advisors by the bank, AMC, fund house that’s offering the fund.

However, investors can pay for the services of a broker, distributor, investment
advisor, etc. if the investor finds that the services offered - such as professional
 fund management, proprietary technology, intuitive digital services, financial
advisory services, etc. - are worth paying for.

8. Can I invest in SIP online?

SIP investments can be started online. Online SIP investing is the modern and
preferred way to invest in SIP, as it involves minimal paperwork and
investments made reflect immediately. Online SIP investments can be viewed
on a dashboard that constantly tracks all the details about the fund such as
NAV, fund performance, etc.

9. Can I withdraw from an ELSS SIP before 3 years?

No. For an ELSS plan to reap the full benefit from taxation, it cannot be
dissolved, redeemed, or withdrawn from at any time before the completion of 3
years from the investment date. In the case of SIP investments in ELSS
schemes, every instalment has to spend 3 years invested in the scheme before
it can be withdrawn. This means that if an ELSS SIP investment started on June
2014, and subsequent instalments were made in July, August, September,
October, etc., they can be redeemed in the respective month after 3 years - i.e.
the instalment of June 2014 can be withdrawn after June 2017, the instalment
of July 2014 can be withdrawn after July 2017, and so on, irrespective of the
total value of the sum of all SIP instalments.

10. How to make payments into the SIP mutual fund scheme? How to pay SIP
instalments?

The most convenient and most popular way of paying SIP instalments is via
ECS - or Electronic Clearance Service - which is a digital standing order that is
placed on your bank account. This standing order directs the bank to
automatically transfer ‘Rs.x’ from your bank account to the mutual fund scheme.
The ECS can be set up to automatically transfer money on a certain date -
meaning that if you receive your salary on the 1st of the month, you can set up
an ECS to directly debit Rs.x on the 5th of every month, thus establishing an
SIP. The NACH - National Automated Clearing House system works in a similar
and reportedly more efficient way. Direct Debit Mandate is another form of
standing instruction with the bank and has the same effect.

Another convenient way of making SIP payments is to issue a number of post-

dated cheques for the SIP amount. The number of cheques would be the same
as the number of SIP instalments due until maturity, and the date on the cheque
would be the date the SIP instalment is due.

Alternatively, you could log into your bank account online and manually make
the payment on the SIP instalment date every month.
 OBJECTIVE

To give a brief idea about the benefits available from

mutual Fund investment.

To give an idea of the types of schemes available.

Explore the recent developments in the mutual funds in

India

To give an idea about the regulations of mutual funds.

To analyse reliance mutual fund strategy against its
competitor.

RESEARCH METHODOLOGY

Research as a care full investigation or enquiry specially

through search for a new facts in any branch of knowledge”
Research is an academic activity and such as the term should
be 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.

TYPES OF RESEARCH

ANALYTICAL RESERCH
In this project work, analytical research is used. In this project
has to use facts or information .Already used available ,and
analyse 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.

TOOLS OF ANALYSIS

For the proper analysis of data Quantitative Technique such

as percentage method was used.

DATA ANALYSIS AND INTERPRETATION

 OBSERVATION

 50% of respondent have Reliance Money , 30% of

respondent says that other%.

 44% respondent for Reliance,32 %forHdfc,14% for ICICI.

 40% respondent for Reliance,30 %forHdfc,30% for ICICI.

 36% respondent for Reliance,32%forHdfc,32% for ICICI.

 44% respondent for Reliance,30%forHdfc,26% for ICICI.

FINDINGS AND SUGGESTION

In Equity Schemes we have taken Reliance Vison 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 Debt scheme we have taken Reliance money Manager Fund
and Reliance Liquidity Fund .In it boths 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.

SUGGESTION

 Reliance Money 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.

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 con be concluded by that Reliance Money is still

growing industry in India and is still exploring its potential
and prospects in here.
Limitations
• The time constraint was one of the major problems.
• 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.

Bibliography
Websites:

[Link]/schemewatch

[Link]

[Link]/schemewatch

[Link]

[Link]