Investors Perception Towards The Mutual Funds - Reliance Securities

INVESTORS PERCEPTION TOWARDS THE RELIANCE MUTUAL FUNDS
ABSTRACT
A mutual fund is a type of professionally managed collective investment
vehicle that pools money from many investors to purchase securities. As the mutual
fund sector has developed, there's been a growing acceptance by most policy holders
that the assured return era is a thing of the past. The mutual fund companies are
focusing on the Market Linked Plans. This study would help in explaining the
investors perception of risk & return & their preference for different schemes of
mutual fund.
The Primary objective of the study is to assess the investors perception
towards the RELIANCE Mutual funds. The secondary objectives include identifying
the advantages of RELIANCE Mutual funds over other forms of investments and
compare RELIANCE Mutual funds with other types of investments and mutual funds
of other companies. This study also aims to understanding the investors perception of
risk & return & their preference for different schemes of mutual fund.
This study constitute a sample of 250 different kinds of investors they
diversification of investment plans, opinion of the investors has been collected
through structured questionnaire and study confined to the area of different areas in
Chennai. Most of the investors have very good knowledge about RELIANCE Mutual
funds investment and other investment plan. Based on the findings and analysis it can
be concluded that the investors are satisfied with the returns and performance of
RELIANCE Mutual funds superiority and over other investments plan of other mutual
fund companies.
TABLE OF CONTENTS
CHAPTER
CONTENTS
PAGE NO.
NO.
I
INTRODUCTION
II
2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE
III
REVIEW OF LITERATURE
IV
RESEARCH METHODOLOGY
4.1 Statement of the problem
4.2 Need for the study
4.3 Objectives of the study
4.4 Scope of the study
4.5 Research Design
4.6 Limitations of the study
4.7 Expected contribution of the study
DATA ANALYSIS AND INTERPRETATION
VI
FINDINGS
VII
SUGGESTIONS
VIII
CONCLUSION
IX
BIBLIOGRAPHY
ANNEXURE
TABLE CONTENTS
SLNO
CONTENTS
PAGE NO.
Distribution of the respondents based on the age
Distribution of the respondents based on the gender

Distribution of the respondents based on the
3
Educational Qualification
4
Occupation
Distribution of the respondents based on the Place of
5
living
Distribution of the respondents based on the monthly

6
income
7
awareness about fund
8
investment in RELIANCE Mutual funds so far
9
RELIANCE Mutual funds are a great way to let

money grow
Distribution of the respondents based on the choose
10
the best types of investments based on the

satisfaction available from their return
Distribution of the respondents based on the risk
11
perception about mutual fund
12
following schemes/ funds would like to invest in

mutual fund
13
following gives better return
14
influenced to invest in mutual fund
Distribution of the respondents based on the mutual
15
fund schemes fulfill objective of maximizing the

return from the investment
16

the best income fund based on the satisfaction
available from their return
LIST OF CHARTS
SLNO
CONTENTS
PAGE NO.
Distribution of the respondents based on the age
Distribution of the respondents based on the gender

Educational Qualification

Occupation
Distribution of the respondents based on the Place of

living
Distribution of the respondents based on the monthly

income

awareness about fund

investment in RELIANCE Mutual funds so far

RELIANCE Mutual funds are a great way to let
5
money grow
10

the best types of investments based on the
satisfaction available from their return
11
Distribution of the respondents based on the risk

perception about mutual fund
12

following schemes/ funds would like to invest in
mutual fund
13

following gives better return
14

influenced to invest in mutual fund
15
Distribution of the respondents based on the mutual

fund schemes fulfill objective of maximizing the
return from the investment
16

the best income fund based on the satisfaction
available from their return
CHAPTER - I
INTRODUCTION:
Mutual fund:A Mutual Fund is a pool of money collected from investors & is invested
according to certain investment objectives. A Mutual Fund is created when investors
put their money together. It is therefore a pool of the investors funds. The most
important characteristic of a Mutual Fund is that the contributors & the beneficiaries
of the fund are the same class of people, namely the investors. The term Mutual
means that investors contributed to the pool & also benefit from the pool. There are
no other claimants to the funds. The pool of funds held mutually by investors is the
Mutual Fund.
A Mutual Funds business is to invest the funds thus collected, according to
the wishes of the investors who create the pool. In many markets the wishes are
articulated as Investment Mandates Usually, the investors appoint professional
investment managers, to manage their funds. The main objective is achieved when
professional investment managers create a Product & offer it for investment to the
investor. This product represents a share in the pool, & pre-states investment
objectives.
For example: A Mutual Fund, which sells a money market mutual fund, is actually
seeking investors willing to invest in a pool that would invest pre-dominantly in
money market instruments.
Characteristics of a Mutual Fund:
1. A Mutual Fund actually belongs to the investors who have pooled their funds. The
ownership of the Mutual Fund is in the hands of the investors.
2. A Mutual Fund is managed by investment professionals & other service providers,
who earn a fee to their services from the fund.
3. The pool of funds is invested in a portfolio of marketable investments. The value
of the portfolio is updated every day.
4. The investors share in the fund is denominated by Units. The value of the units
changes with change in the portfolios value, every day. The value of the unit of
the investment is called as Net Asset Value or NAV.
5. The investment portfolio of the Mutual Fund is created according to the stated
investment objectives of the fund.
Emergence of Mutual Fund:
Mutual Funds now represent perhaps the most appropriate investment
opportunity for most investors; as financial markets became more sophisticated and
complex, investors need a financial intermediary who provides the required
knowledge and professional expertise on successful investing.
It is no wonder then that in the birth place of Mutual Funds U.S.A. the
fund industry has already overtaken the banking industry, more funds being under
Mutual Fund management than deposited with banks.
The Indian Mutual Fund industry has already started opening up many of the
existing investment opportunities to Indian Investors. We have started witnessing the
phenomenon of more saving now being entrusted to the funds than to the banks.
Despite the expected continuing growth in the industry, Mutual Funds are still
a new financial intermediary in India.
Hence, it is important that the investors, the Mutual Fund agents / distributors,
the investment advisors and even the fund employees acquire better knowledge of
what Mutual Funds are, what they can do for investors and what they cannot, and how
they function differently from other intermediary such as the banks.
The Association of Mutual Fund in India has commissioned this workbook as
the basic compilation of the minimum knowledge required by both the fund
distributors and the employees. The Workbook will also serve as a guide to the AMFI
Testing Programme for distributors and employees.
CHAPTER 2
2.1 INDUSTRY PROFILE
HISTORY OF MUTUAL FUNDS IN INDIA:
The Mutual Fund industry started in 1963 with the formation of Unit Trust of
India. At the initiative of the Reserve Bank and the Government of India, the objective
then was to attract the small investors and introduce them to market investments.
Since then, the history of Mutual Funds in India can be broadly divided into three
distinct phases.
Phase 1 1964 1987 [Unit Trust of India]
This phase spans from 1964 to 1987. In 1963, UTI was established by an Art
of Parliament and given a monopoly. Operationally, UTI was set up by the Reserve
Bank India, but was later de-linked from RBI. The first and still one of the largest
schemes, launched by UTI was Unit Scheme 1964. Over the years, US-64 attached,
and probably still has, the largest number of investors in any single investment
scheme. It was also at least partially the first open-end scheme in the country, now
moving towards becoming fully open-end.
Later in 1970s and 80s, UTI started innovating and offering different schemes
to suit the needs of different classes of investors. Unit Linked Insurance Plan [ULIP]
was launched in 1971. Six new schemes were introduced between 1981 and 1984.
During 1984 1987, new schemes like childrens Gilt Growth Fund [1986] and
Master share [1987] were launched. Master share could be termed at the first
diversified equity investment scheme in India. The first Indian offshore fund, India
Fund, was launched in August 1986. During 1990s, UTI catered to the demand for
income-oriented schemes by launching Monthly Income Schemes, a somewhat
unusual fund product offering assured returns.
The Mutual Fund industry in India not only started with UTI, but still counts
UTI as its largest player with the largest corpus of investible funds among all Mutual
Funds currently operating in India. Until 1980s, UTI operations in the stock market
often determined the direction of market movements. Now, many Indian investors
9
have taken to direct investing on the stock markets. Foreign and other institutional
players have been brought in. so direct influence of UTI on the markets may be less
than before, through it remains the largest player in the fund industry. In absolute
terms, the investible funds corpus of even UTI was still relatively small at about
Rs.600 crores in 1984. But, at the end of this phase one, UTI has grown large as
evidenced by the following statistics:
1987 1988
Amount
UTI
Total
Mobilized Assets Under Management Mobilization as % of
[Rs. Crores]
[Rs. Crores]
Gross
2,175
2,175
6,700
6,700
Savings
3.1%
3.1%
Domestic
Phase 2 1987 1993 [Entry of Public Sector Funds]

1987 marketed the entry of non-UTI, Public Sector Mutual Funds, bringing in
competition. With the opening up of the economy, many public sector banks and
financial institutions were allowed to establish Mutual Funds. The State Bank of India
established the first non-UTI Mutual Fund RELIANCE Mutual Fund in November
1987. This was followed by Canbank Mutual Fund [launched in December 1987],
LIC Mutual Fund [launched in 1989], GIC Mutual Fund and PNB Mutual Fund.
These Mutual Funds helped enlarge the investor community and the investible funds.
From 1987 to 1992 1993, the fund industry expanded nearly seven times in terms of
Assets Under Management, as seen in the following figures:
1992 1993
Amount
[Rs. Crores]
[Rs. Crores]
Gross
Domestic
Savings
UTI
11,057
38,247
5.2%
Public
1,964
8,757
0.9%
sector
Total
13,021
47,004
6.1%
During this period, investors were shifting away from bank deposits to Mutual
Funds, as they started allocating larger part of their financial assets and savings [5.2%
in 1992, 3.1% in 1988] to fund investments. UTI was still the largest segment of the
industry, although with nearly 20% market share ceded to the Public Sector Funds.
10
Phase 3 1993 1996 [Emergence of Private Funds]

A new era the Mutual Fund industry began with the permission granted for the
entry of private sector funds in 1993, giving the Indian investors a broader choice of
fund families and increasing competition for the existing public sector funds. Quite
significantly, foreign fund management companies were also allowed to operate
Mutual Funds, most of them coming into India through their joint ventures with
Indian promoters. These private funds have brought in with them the latest product
innovations, investment management techniques and investor serving technology that
makes the Indian Mutual Fund industry today a vibrant and growing financial
intermediary.
During the year 1993 1994, five private sector Mutual Funds launched their
schemes followed by six others in 1994 1995. Initially, the mobilization of funds by
the private Mutual Funds was slow. But this segment of the fund industry now has
been witnessing much greater investor confidence in them. One influencing factor has
been the development of a SEBI driven regulatory framework for Mutual Funds.
But another important factor has been the steadily improving performance of several
funds themselves. Investors in India now clearly see the benefits of investing through
Mutual Funds and have started becoming selective.
Phase 4 1996 [SEBI Regulation for Mutual Funds]
The entire Mutual Fund industry in India, despite initial hiccups, has since
scaled new heights in terms of mobilization of funds and number of players.
Deregulation and liberalization of the Indian economy has introduced competition and
provided impetus to the growth of the industry. Finally most investors small or large
have started shifting towards Mutual Funds as opposed to banks or direct market
investments.
More investor friendly regulatory measures have been taken both by SEBI to
promote the investor and by the government to enhance investors returns through tax
benefits. A comprehensive set of regulations for all Mutual Funds operating in India
has been accomplished with SEBI [Mutual Fund] Regulations, 1996. These
11
regulations set uniform standards for all funds and will eventually be applied in full to
Unit Trust of India as well, even through UTI is governed by its own UTI Act. In fact,
UTI has been voluntarily adopting SEBI guidelines for most of its schemes. Similarly
the 1999 Union Government Budget took a big step in exempting all Mutual Fund
dividends from income tax in the hands of investors. Both the 1996 regulation and the
1999 Budget must be considered of historic importance, given their far reaching
impact on the fund industry and investors.
The Mutual Fund industry 1999 seems to mark the beginning of a new phase
in its history, a phase of significant growth in terms of assets under management.
Consider the growth in assets as seen in the figures below:
1998 1999
Amount
[Rs. Crores]
[Rs. Crores]
Gross
Domestic
Savings
UTI
11,679
53,320
2.79%
Public
1,732
8,292
0.08%
sector
Public
7,966*
6,860*
1.14%
sector
Total
21,377
68,472
5.1%
1998 1999
Amount
Mobilized Assets Under Management
[Rs. Crores]
[Rs. Crores]
UTI
8,312
64,276
Public
1,222
8,656
sector
Public
13,789*
14,017*
sector
Total
23,323
86,949
* Figures of Assets under management are after taking account of Redemptions.
Amounts Mobilized are Grass.
The size of the industry is growing rapidly, as seen by the figure of assets
under management, which have gone from over 68,000 crores to nearly 87,000 crores
in just one year. Within the growing industry, by March 1999, UTIs share of
mobilizations had decreased to 55% [from 85% in 1992 1993], while the share of
the private sector stood at 37%. During April to October 1999, the private sector
12
accounted for 59% of mobilisations. Mobilisations during this period of 7 months in

fact exceeded the same for the whole of 1998 1999.
It is also clear that the enhanced share of the private sector is explained not
only by the growing appetite for Mutual Funds, but also by the growing acceptance of
the private sector funds.
The following chart portrays the growth of the Mutual Fund industry in
100%
80%
60%
40%
20%
0%
Private Sector
Public Sector
9
O
c
t
8
A
p
8
9
1
9
9
3
9
2
9
9
1
UTI
India across the development phases discussed above

Place of Mutual Funds in Financial Markets:
Indian household started allocating more of their savings to the capital markets
in 1980s, with investments flowing into equity and debt instruments. Besides the
conventional mode of bank deposits.
Until 1992, primary market investors were assured good returns as the price of
new equity issues was controlled. After introduction of free pricing of shares lost
money and withdrew from the markets altogether. Even those investors who
continued as direct investors in the stock markets realized that the key to successful
investing in the capital markets lay in building a diversified portfolio, potential from
the capital market involved careful research and monitoring of the market, which was
not possible for all investors. Under similar circumstances in other countries, Mutual
Funds had emerged as professional intermediaries.
13
Besides providing the expertise in stock market investing, these funds allow
investing in small amounts and yet holding a diversifies portfolio to limit risk, while
providing the potential for income and growth associated with the debt and equity
instruments. In India Unit Trust of India occupied this place as the only capital
markets intermediary from 1964 until 1988, when the Government started other
sponsors also set up Mutual Funds. With some ups and downs, this new class of
intermediary institutions is emerging, in India as elsewhere, as a good alternative to
direct investing in capital markets.
Mutual Funds serve as a link between the saving public and the capital
markets in that they mobilize savings from investors and borrowers in the capital
markets. By the nature of their activities, and by virtue of being knowledgeable and
informed investors, they influence the stock markets and play an active role in
promoting good corporate governance, investor protection and the health of capital
markets.
Mutual Funds have imparted much needed liquidity into the financial system
and challenged the hitherto dominant role of banking and financial institutions in the
capital markets.
Understanding of mutual fund
Using Mutual Fund:
A small man anyone with a portfolio of, Say, under $100,000 is unlikely to do as
well investing his own money as he can do in a [Mutual Fund]
-
Paul Samuelson,
MIT Economist
Nobel Laureate.
14
Advantages of Mutual Fund:

1. Portfolio diversification:
By offering diversified portfolios Mutual Fund enable investors to hold
diversified portfolios. Through investors can create their own diversified portfolios.
The cost of creating & unconditioning such portfolios can be high apart from fact that
investors may lack professional expertise to manage such a portfolio.
2.
Professional management:
Mutual Funds are managed by investment managers who are appointed by
trustees & bannered by the investment management agreement & the AMCS are
closely regulated by the SEBI.
3. Reduction in risk:
Mutual Fund invests in a portfolio of securities. This means that all funds are
not invested in the same investment avenue. Therefore, holding a portfolio that is
diversified across investment avenues in a wise way to manage risk.
4. Reduction of transaction costs:
Mutual Funds provide the benefit of economics of scale by virtue of their size.
Through the individual investors contribution may be small; the Mutual Fund itself is
large enough to be able to reduce cost in its transactions.
5. Liquidity:
Most of the funds being sold today are open ended. That is investors can sell
their existing units or buy new units, at any point of time at prices that are related to
the NAV of the fund on the date of transaction.
15
6. Helps in financial planning:

Investors in the Mutual Fund industry today have a choice of 39 Mutual
Funds, offering nearly 500 products. They provide different categories of products. It
is also possible for the investors to choose the manner in which the returns would be
distributed. The most important benefit of product choice is that it enables investors to
choose options that suit their return requirements.
7. Enables regular periodic saving:
It enables regular periodic savings through systematic investment plan [SIP].
Why Buy Mutual Fund?
Reason 1 Tax superior
Dividend received is exempt
Capital gains-long term
With indexation 20%
Without indexation 10%
Short-term applicable tax bracket.

Reason 2 deposit rates are reducing.
PLUS
Very few companies accepting FD investments.
Most of them going to debt market for fresh money - & this gives Mutual Funds
an opportunity to buy them for your customers.
Mutual Funds lock in period is low & liquidity is very high.
And give higher returns generally.
Minimum amount of investment is lower than FDs generally thus everyone can
sfford it.
16
Reason 3 stock markets remain good but long term only.

If your holding period was
The number of negative returns / loss

periods would be
6 days
51% of the time losses.
15 days
30 days
180 days
365 days
5 years
10 years
15 years
O% of the time losses.
Daily rolling returns for relevant period from 2000 onwards [ short term , 365days] &
from 1980 [for long term]
Average return over 10 year period is > 15%
Direct equity in short term is very volatile thousands have suffered losses
Not everyone can afford to spend time & money in monitoring thus equity
Mutual Funds are a good option one can invest REGULARLY & even with
LOW INVESTMENTS.
Equity Mutual Funds can select the right shares at the right time & can often buy
at lower prices.
Types of Mutual Fund:

I. Types available with respect to investment:
Depending on the investment portfolio that is created, the following are the
types of products offered by Mutual Fund:
1) Equity funds / Growth schemes.
2) Debt funds / Income schemes.
3) Balanced funds.
1) Equity funds / Growth schemes:
17
Equity funds are those that invest predominantly in equity shares of companies.
Following are the various types of equity funds:
a) Growth funds:
Growth funds invest in companies whose earnings are expected to rise at an
above average rate. The primary objective of growth funds is capital appreciation
over 3 to 5 years span.
b) Specialty funds:
These funds have a narrow portfolio orientation & invest in only companies
that meet pre defined criteria. For example: - at the height of the South African
apartheid region many funds in the U.S. offered plans that promised not to invest
in South African companies.
c) Sectoral funds:
Sector funds portfolio consists of investment in only one industry or sector of
the market such as information technology etc.
d) Index funds:
An index fund tracks the performance of a specific stock market index. The
objective is to match the performance of the stock market by tracking an index
that represents the overall market. The fund invests in shares that constitute the
index & in the same proportion as the index.
e) Value funds:
Value funds try to seek out fundamentally sound companies whose shares are
currently under priced in the market. Value funds will add only those shares to
their portfolios that are selling at low price-earning ratios & are undervalued by
other yardsticks.
f) Diversified equity funds:
18
A fund that seeks to invest only in equities, except for a very small portion
in liquid money market securities, but is not focused on any one or few sectors
or shares may be remedy as diversified equity fund.
g) Equity Linked Saving Schemes [ELSS]:
In India the investors have been given tax concessions to encourage them to
invest in equity market through these special schemes. Investment in these
schemes entitles the investors to claim an income tax rebate, but usually has a lock
in period before the end of which funds cannot be with drawn.
2) Debt funds / Income schemes:
Debt funds are those that predominantly invest in debt securities. Since
most debt securities pay periodic interest to investors. These funds are also known
as income funds. What is important in that portfolio is pre-dominantly made up of
debt securities. Debt securities companies of long term instruments such as bond
issued by Central & State Governments, public sector organizations, corporate
debentures & money market instruments like Treasury bills, Commercial papers,
Certificate of deposit etc. following are the various types of debt funds:
a) Liquid or money market funds:
These funds provide easy liquidity, preservation of capital & moderate
income. These schemes invest exclusively in safer short-term instruments such as
Treasury bills, Commercial papers, Certificate of deposit etc. return on these schemes
fluctuate much less compound to other schemes.
b) Gilt funds:
These funds invest exclusively in government securities. Government
securities have no default risk.
c) Diversifies debt funds:
A debt fund that invests in all available types of debt securities issued by
entities across all industries & sector is a diversified debt fund.
19
d) Focused debt fund:

Some debt funds have a narrow focus, with less diversification in its
investments. Example: includes sector, specialized & off share debt funds.
e) High yield debt funds:
A high yield debt fund seeks to obtain higher interest returns by investing in
debt instruments that are considered Below investment grade.
f) Assured return funds:
Assured return schemes are those schemes that assure a specific return to the
unit holders irrespective of performance of the scheme. A scheme cannot promise
return unless such returns are fully guaranteed by the sponsor or AMC.
3) Balanced fund:
The aim of balanced funds is to provide both growth & regular income as such
schemes invest both in equities & fixed income securities in the proportion indicated
in their offer document. These are appropriate for investors looking for moderate
growth. They generally invest 40 60% in equities & debt instrument.
Types according to maturity period:
1) Open-ended schemes:
An Open-ended fund or scheme is one that is available for subscription &
repurchase of, on a continuous basis. These schemes do not conveniently buy & sell
units at Net Asset Value [NAV] related prices, which are declared on a daily basis.
The key features if an open-end scheme is liquidity.
2) Close-ended scheme:
20
A Close-ended scheme or fund has a stipulated maturity period. Example: 5 to

7 years. The fund is open for subscription only during a specified period at the time of
launch of the scheme.
Investors can invest in the scheme at the time of the initial public images &
therefore they can buy or sell the units of the schemes on the stock exchanges where
the units 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 through listing on stock exchanges. These Mutual
Funds schemes disclose NAV generally on weekly basis.
Load funds & No load funds:
A load fund is one that charges a percentage of NAV for entry or exit. That is
each time one buys or sells units in the fund, a charge will be payable. This charge is
used by the Mutual Fund for marketing & distribution expenses. Suppose the NAV
per unit is Rs.10, if the entry as well as exit load is 1% then the investor who buy
would be required to pay Rs.10.10 & those who offer their units for repurchase to the
Mutual Fund will get only Rs.9.90 per unit.
A No Load fund is one that does not charge for entry or exit. It means that investor
can enter the scheme at NAV & no additional charges are payable on purchase or sale
of units.
Options for structuring returns to investors:
Mutual Funds offer a variety of opinions to investors in which the returns from
their investments in structured. Investor has two options:
1) Dividend opinion:
Under this option the dividends will be declared by the Mutual Fund. Again this
option is divided into two. They are:
a) Dividend payout:
21
Under this option the investor will receive dividends from the Mutual
Fund as & when such dividends are declared or are directly credited to the
investors bank A/C. dividends may be declared weekly, monthly, quarterly,
half yearly or annually.
b) Dividend re-investment:
Under this option the investor re-invest the dividends that are declared
by Mutual Fund back into the fund itself, at NAV that is prevalent at the time
of re-investment. In this option the number of units held by the investor will
charge with every re-investment.
2) Growth option:
Investors who do not require periodic income distributions can choose the
growth option. Where the incomes earned are retained in the investment portfolio
& allowed to grow, rather than being distributed to the investors.
Net Asset Value [NAV]:
The performance of a particular scheme of a Mutual Fund is denoted by Net
Asset Value [NAV]. NAV of Mutual Fund is the value of one unit of investment in the
fund, in the Net Asset terms. It is computed by dividing the Net Asset of the fund by
the number of units that are outstanding in the books of the funds. NAV is calculated
as follows: NAV = Total assets Total liabilities
No. Of units outstanding
Total Assets = Market value of investment + Current assets
+ Accrued income.
Total Liabilities = Current Liabilities + Accrued expenses.
22
Role of SEBI:
As far as Mutual Funds are concerned SEBI formulated policies & interest of
the investor. 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 revised in 1996 & have been amended thereafter from time to
time. SEBI has also issued guidelines to the Mutual Funds from time to time to
protect the interest of investors.
All Mutual Funds in India are required to be mandatory registered with the
SEBI. The structured & formation of Mutual Funds, appointment of key functionaries,
investment restrictions etc. are all defined under SEBI regulations. Mutual Funds have
to send half-yearly compliance reports to SEBI & also provide all other information
about their operations as SEBI may require.
Advantages of Income Funds over Bank Fixed Deposits:

1. Portfolio diversification:
By offering ready-made diversified portfolios Mutual Funds enable investors to
hold
diversified portfolios. But Bank Deposits does not enjoy this advantage of
Income Fund & other schemes of Mutual Fund.

2. Liquidity:
Since the Income funds are open-ended that investors sell their existing units or
buy new units at any point of time. This enables investors to enjoy a high level of
liquidity on their investments on the other hand in Bank FDs the money invested will
be locked up for the period of deposits hence does not enjoy liquidity.
3. Higher Returns:
23
An income fund gives much better return when compared to Bank Fixed Deposits.
4. Professional management:
Mutual Funds provide professional management of funds where the funds are
managed by investment managers appointed by trustees & the AMCs are closely
regulated by SEBI.
Comparison:
Return:
Where we compare income funds table & Bank Deposits rates table, it is
implicated that the returns available from income funds are much higher when
compared to Bank Deposits. Income Funds give better returns than the Bank deposits
for an investor.
Risk:
Bank Deposits are safer when compared to Income funds. But in Income
Funds the investment will be made in debt instruments like money market
instruments, government bonds & securities etc, which are safe. That is why Income
funds are considered as safe may be not much as Bank Deposits.
Liquidity:
Income Funds, Liquid Funds enjoy liquidity. The investors can redeem their
investment when they want to do so. But Bank Fixed Deposits does not enjoy
liquidity features. The amount invested will be locked for the period of deposit.
LIQUID FUNDS:
Making the banks run for their money:
24
Liquid funds in India, and across the world, form a major chunk of total assets
under management in the Mutual Funds industry. In India itself, 22% of assets go into
liquid funds.
How it started?
The first money market fund the Reserve Fund was established in the US
in the early 1970s. Its masterstroke was to take the privileges that institutions
enjoyed, & make them available to average investors.
Bruce Bent, who was the genius behind the fund, summarized it this way: I
wanted to put money where people could forget about it dollar back, plus a
competitive rate of return. We broke the stranglehold by banks for savers, and it
leveled the playing field.
His idea was to package high-yielding money market debt instruments and
commercial paper, into a Mutual Fund. Investors could safely take advantage of high
yields, while paying only a small fee to the manager of the fund. The concept was an
overnight sensation. Today, there are around 1,500 such funds in the US, and a further
1,300 in Europe.
However, the success didnt come without growing pains. Following some
high-profile fund failure in the early years, the US Securities and Exchange
Commission decided to closely regulate their workings. One of its main stipulations
for these funds was the high quality of the underlying securities. This was to minimize
the potential for any losses.
Today, in Europe, money market funds tend to be more aggressive, focusing
more on better performance, whereas US-style money funds focus on preserving
capital. Dubbed money market plus funds, these souped-up versions invest beyond
the most conservative range of short-term securities.
FMPS competing with bank deposit
25
Next target of Mutual Fund!

After giving s stiff competition to the banks for cash management needs of
corporate and large investors through liquid funds, mutual funds are now eyeing the
deposit base of the banks through Fixed Maturity Plans debt funds that invest your
money for a fixed period and earn [almost] fixed returns. The FMPs as they are
popularly known as, are an excellent substitute of short-term bank deposits where the
investor is certain about his investment horizon and wants to take minimum risk.
FMPs are Mutual Fund schemes where the fund manager invests your money
for the tenure of your choice in fixed income securities. For example, if you wish to
invest Rs.1,00,000 for three months, then you select a quarterly fixed maturity plan
and invest at par when the scheme opens for investments. The scheme matures after 3
months and you get your money back based on the prevailing NAV.
Fixed returns through fixed Maturity:
FMPs are typically close-ended schemes [or exit is restricted by charging high
exit loads]. This allows the fund manager to buy debt securities that have a maturity
equal to the tenure of the scheme and then these securities are held on till the scheme
matures.
Since trading in the portfolio is minimal and securities are held till maturity,
the portfolio is free from interest rate risk and thus its ability to assure indicative
returns.
The Mutual Funds do not assure fixed returns as it may not always be
possible to buy securities whose maturity exactly matches the tenure of the scheme
and hence there may be a small reinvestment risk as some of the debt papers in the
portfolio mature before the scheme matures.
SESTEMATIC INVESTMENT PLAN (SIP) VERSUS CHIT FUND
Systematic investment plan (SIP):
26
Whether investors are ready to take their first step towards their long-term
investment goals or have already started their journey, investors may be concerned
about the possibility of market volatility or high prices. There are ways the investor
can benefit from the market and still not suffer stocks.
What is known in the US as Dollar cost averaging is a systematic approach to
long term investing. Basically, under SIP option an investor commits making a regular
[monthly, quarterly] investment in a particular Mutual Fund and there by accumulate
more units when the market prices are low and lower number of units when prices are
high in effect.
This has the effect of keeping an investors average cost of units lower than if
investor were to go into the market with the lump sum investment on any given day or
if the investor were to buy similar amount of units in the market irrespective of price.
Repeated studies have shown that the best way to benefit from markets is to invest
long term and invest systematically.
SIP is an application of the principals of Dollar cost averaging in the Indian
context.
What is systematic investment plan [SIP]
An investment strategy based on the concept of rupees-cost averaging, which
automatically ensure that the average purchase price of securities over a series of
periodic transactions is always lower than the securitys highest prices at any point of
time. SIPs which are based on the concept of rupee cost averaging which is a very
common investment strategy in the stock market. Under this, an investor purchases
units worth a fixed amount regularly, in effect buying fewer units when the NAV is
high and more when the NAV is low. A SIP automatically disciplines investors to
invest regardless of market movements.
Systematic investments are an easy way to accumulate assets and take
advantage of Rupee cost averaging [buying more shares when prices are low] by
allocating pre-determined periodic investment into Mutual Funds.
27
SIP is an investment option that is presently available only with Mutual Funds.
The other investment option comparable to SIPs is the recurring deposit schemes for
Post office and banks. Basically, under an SIP option an investor commits making a
regular [monthly] investment in a particular Mutual Fund / deposit.
Systematic investments do not assure a profit and do not protect against a loss
in declining markets. Since systematic investing involves continuous involvement in
the market regardless of functioning price levels of securities, you should consider
your financial ability to continue your purchases through periods of low price levels.
How to invest in Sips?
The SIP option is available with all types of funds like equity, income or gilt.
An investor can avail the SIP option by giving post-dated cheques of Rs.500 or
Rs.1000 according to the funds policy.
If an investor wants to put more than Rs.500 or Rs.1000 in any given month he
will have to fill in a new form for SIP intimating the fund that he is changing his
SIP structure. Also he will be allowed to change the SIP structure only in the
multiples of the SIP amount.
If an investor is investing in two different schemes of the same fund he can fill in
a common SIP form for all the schemes. However if the first holders in those
schemes are different than they will have to fill different SIP forms, as the first
holder has to sign on the form.
The investor can get out of the fund i.e. redeem his units any time irrespective of
whether he completed his minimum investment in that scheme. In such a case his
post-dated cheques will be returned back to him.
Benefits of SIP buil wealth over the long term:
The key to building wealth is to start investing early and regularly. These
regular amounts of savings, however small they may be, can possibly grow into a
28
substantial amount of wealth over the long term. Most of us tend to procrastinate
investment decisions for there is always some expense, which is a top priority.
Therefore, if you have to save regularly. It makes sense to pay yourself first and that is
the only way to increase your savings.
SIP makes sense to an investor if and only it the investor considers the following:
1. Investor is unsure about which to invest.
2. Investor doesnt want to commit too much at a time.
3. A disciplined approach to long term investing appeals to investor.
4. Investor wants to use potential market volatility to his advent
Chit fund:
Chit fund is an investment where person invests his money on monthly basis.
The gain or the dividend, which an investor gets after certain period of time, depends
entirely on the bid amount.
The following are the 8 different schemes from SRI RAM CHITS [K] LTD
having different chit values & investment period. These are the data related to the
schemes from 1999 April 2003.
SIP:
The following table shows the returns available from investment in systematic
investment plan. The table gives the Absolute return from SIP of different income
funds if at all the investor had invested through a SIP instead of putting the money in
a chit fund.
Advantages of SIP over chit fund:
1. Safety:
Mutual Fund schemes are much safer when compared to chit fund. This is because
Mutual Funds are regulated by SEBI. On the other hand chit fund involves higher
risk. They are not regulated hence there is no surety for the investors money.
29
2. Better returns:
SIPs gives a better return than a chit fund. In a chit fund the dividend or the
return entirely depends on the Bid amount apart from this the amount collected from
the investors anywhere. It is a kind of rotating the money among the investors.
3. Diversified portfolio: A Mutual Fund scheme gives different portfolios to the investor. But a chit fund
does not involve any such term.
SIP versus Bank Recurring Deposits:
Both SIP & Bank Recurring Deposits are similar in nature. Both involve
monthly or periodic investment. The people who want to invest their monthly savings
usually go for Bank Recurring Deposits but Mutual Fund schemes gives a similar
kind of investment option that is Systematic investment plan. Following gives the
comparison between the to:
Advantages of SIP over recurring deposits:
1. Diversified portfolio:
Mutual Fund schemes invest in different securities or instruments & there by
enable the investor to get the advantages of diversified returns.
2. Higher Returns:
Systematic investment plan gives a better return when compared to the Bank
Recurring Deposits.
3. Professional management:
30
Investment managers manage Mutual Funds & therefore they bring in

significant professional expertise & are bound by regulatory & trustee
supervision.
RBI bonds:
There are two types of RBI bonds. They are:
1. 8% savings bonds [taxable]:

These bonds will bear interest at the rate of 8% p.a. interest ion non-cumulative
bonds will be payable at half yearly intervals & interest on the cumulative bonds will
be compounded with half yearly rests & will the principal as the subscriber may
choose. Interest, as these bonds will be taxable under the income tax act 1961 as
applicable. According to the relevant tax status of the bondholder. These bonds are
exempt from wealth tax. The tenure of the bond is 6 years.
2.
6.50% savings bonds [non-taxable]:
The tenure of these bonds is 5 years. The Interest on bonds will be exempt from
income tax under the income tax act of 1961.
Post office savings:
Post office savings involve following forms of investment: 1. National saving certificate [NSC]:
The tenure of these certificates is 6 years. This certificate bears interest at the rate
of 8%.
2. Kisan vikas patra:
Under savings the principal amount doubles in 8 years 7 months.
31
3. Public provident fund:

This bears an interest rate of 8%.
4. Recurring deposit [RD]:
The tenure is 5 years & it bears an interest rate of 8%.
5. Time deposit:
Years
Interest rate.
1 year
6.25%
2 years
6.50%
5 years
7%
6. Monthly income schemes:
This bears an interest rate of 8% & after maturity a bonus of 10% is given to the
investor.
Advantages of Mutual funds over RBI bonds & post office savings:
1. Liquidity:
Even though the RBI bonds & post office certificates are very safe for the
investor, they do not have liquidity. The principal amounts & the interest are paid
only after the tenure of the bond or certificate on the other hand Mutual Funds
provides liquidity features to the investor where he can redeem his units at any
point of time.
2. Diversified port folio:
Mutual Funds provide ready-made portfolio to the investor which involves
different shares, money market instruments, government bonds, debentures etc.
Co-operative society deposits:
32
There are various co-operative societies & banks, which accepts deposits from
the customers.
Apart from income funds, there are equity-oriented schemes & balanced funds
provided by the mutual funds. Investor can earn a good returns if the chooses the right
fund at a right time. He can earn a good return if he knows when to invest & when to
come out of it.
2.2 COMPANY PROFILE

Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani Group,
and is ranked among the 25 most valuable private companies in India.
Reliance Capital is one of India's leading and fastest growing private sector
financial services companies, and ranks among the top 3 private sector financial
services and banking groups, in terms of net worth.
Reliance Capital has interests in asset management and mutual funds, life
and general insurance, private equity and proprietary investments, stock broking,
depository services, distribution of financial products, consumer finance and other
activities in financial services.
The Reliance Anil Dhirubhai Ambani Group is one of India's top 2 business
houses, and has a market capitalization of over Rs.2,90,000 crore (US$ 75 billion),
net worth in excess of Rs.55,000 crore (US$ 14 billion), cash flows of Rs. 11,000
crore (US$ 2.8 billion) and net profit of Rs. 7,700 crore (US$ 1.9 billion).
Reliance Capital Ltd. is a Non-Banking Financial Company (NBFC)
registered with the Reserve Bank of India under section 45-IA of the Reserve Bank
of India Act, 1934. RCL was incorporated as a public limited company in 1986 and is
now listed on the Bombay Stock Exchange and the National Stock Exchange (India).
With a net worth of over Rs 3,300 crore and over 165,000 shareholders, Reliance
Capital has established its presence as a leading player in the financial services
sector in the country.
On
conversion of outstanding equity instruments, the net worth of the
company will increase to about Rs 4,100 crore.

Reliance Capital sees immense potential in the rapidly growing financial services
33
sector in India and aims to become a dominant player in this industry and offer fully
integrated financial services. It is headed by Anil Ambani.
Reliance Capital is one of Indias leading and fastest growing private sector
financial services companies, and ranks among the top 3 private sector financial services
and banking companies, in terms of net worth.Reliance Capital has interests in asset
management and mutual funds, life and general insurance, private equity and proprietary
investments, stock broking and other activities in financial services.
I have done my project in Reliance Money and the study of mutual funds of Reliance
products or schemes.
About Reliance Money:
Reliance Money is a group company of Reliance Capital; one of India's leading
and fastest growing private sector financial services companies, ranking among the top 3
private sector financial services and banking companies, in terms of net worth. Reliance
Capital is a part of the Reliance Anil Dhirubhai Ambani Group.
Reliance Money which commenced commercial operations in April 2007 has over
300,000 customers and 4,300 outlets in more than 3,500 locations across India.
Reliance Money is a comprehensive electronic transaction platform offering a wide range
of asset classes. Its Endeavour is to change the way India transacts in financial markets
and avails financial services. Reliance Money is a single window, enabling you to access,
amongst others in Equities, Equity & Commodities Derivatives, Mutual Funds, IPOs,
Life & General Insurance products, Off share Investments, Money Transfer, Money
Changing and Credit Cards.
Reliance Capital Ltd. has interests in asset management, life and general
insurance,
private equity and proprietary investments, stock broking and other financial services.
ABOUT RELIANCE MUTUAL FUND:
Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Average
Assets Under Management (AAUM) of Rs. 84563.92 Crs (AAUM for June 30th 08 ) and an
investor base of over 68.38 Lakhs.
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.
34
Reliance Mutual Fund constantly endeavors to launch innovative products and

customer service initiatives to increase value to investors.
"Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management
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."
Reliance Capital Ltd. is one of Indias leading and fastest growing private sector
financial services companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth.
Reliance Capital Ltd. has interests in asset management, life and general insurance,
private equity and proprietary investments, stock broking and other financial services.
35
CHAPTER 3
3. REVIEW OF LITERATURE
Using Mutual Fund:
A small man anyone with a portfolio of, Say, under $100,000 is unlikely to do as
well investing his own money as he can do in a [Mutual Fund]
-
Paul Samuelson,
MIT Economist
Nobel Laureate.
A mutual fund is financial service organization that receives money from shareholder,
invests it, attempts to make it grow and agrees to pay the share holder cash on demand
for the current value of his investment
AUTHOR:
BURTON G. MALKIEL
PUBLISHED BY THE INVESTMENT COMPANY OF THE U.S.
A trust that pools the savings of investors who share a common financial goal
is known as a mutual fund.
The money thus collected is then invested in financial market instruments such
as shares debentures and other securities like government paper, etc.
AUTHOR:
DONALD R. LICHTENSTEIN [PROFESSOR OF FINANCE]
UNIVERSITY OF COLORADO.
36
The income earned through these investments, and the capital appreciation
realized, are shared by its unit holders in proportion to the number of units
owned by them.
Investments in securities are spread over wide cross-section of industries and
sectors, thus allowing risk reduction to take place. Diversification reduces the
risk because all stocks and/or debt instruments may not move in the same
time.
AUTHOR:
MA.SANJAI BHAGAT
PROFESSOR OF FINAANCE
The investment of mutual fund it is essentially a mechanism of pooling together the
savings of a large number of investors for collective investment with the objective of
attractive yields and appreciation in their value.
Mutual funds are an important segment of the financial system. It is a non-depository
financial intermediary. Mutual funds are mobilizes of saving particularly of the small
and household sectors, for investment in the stock and money market.
Features, role, benefits of mutual funds superiority over other investments:
Mutual funds mobilize funds by sell in their own shares, know as unit. To an
investor, a unit in mutual funds means ownership of proportional share of
securities in the portfolio of a mutual fund.
This gives the benefit of convenience and the satisfaction of owning shares in
many industries.
Thus, mutual funds are primarily investment intermediaries to acquire
individual investments and pass on the returns to small fund investors.
AUTHOR:
DR. S GURUSAMY
FINANCIAL SERCICES READER
DG VAISHNAV COLLEGE
BOOK:
FINANCIAL SERVICES
37
PAGE NO: 267 TO 283
The mutual fund investment gives the benefit of convenience and the
satisfaction of owning shares in many investors and industries.
A mutual fund is that it provides an ideal avenue for investment for persons of
small means, and enables them to earn a reasonable return with the advantages
of relatively better liquidity.
It offers investors a proportionate claim on the portfolio of assets that fluctuate
in value in comparison to the value of the assets that comprise the portfolio.
It is possible for the small investors to have the benefit of professional and
expert management of their funds. Mutual funds employ professional experts
who manage the investment portfolios efficiently and profitably.
Diversified investment: mutual funds have the advantage of diversified investment of
funds in various industry segments spread across the country. This is advantageous to
small investors who cannot afford having the shares of highly established corporate
because of high market price.
Mutual funds have the distinct advantage of offering to its investors the benefit of
better liquidity of investment. There is always a ready market available for the mutual
funds units.
There is only a minimum risk attached to the principal amount and return f or the
investments made in mutual fund schemes. This is usually made possible by expert
supervision, diversification and liquidity of units.
An attractive benefit of mutual funds is that the various schemes offered by them
provide tax shelter to the investor. This benefit is available under the provisions, all at
will.
Website:
www.amfiindia.com
www.msn.com
www.mutualfund.com
38
CHAPTER 4
4.1 STATEMENT OF THE PROBLEM:
There is very low awareness among people about the RELIANCE Mutual
funds. This prevents them from obtaining a fair return for their investment.
A very few educated people who do not want to invest in mutual fund just
because they are completely unaware of functioning of a mutual fund & they
perceive a very high degree of risk.
There are over 500 different types of products offered by different mutual
funds both private & public. These discount products will have different
portfolios according to the investment period involved.
For e.g.: short-term, medium-term etc. these products meet the expectations of
investors. But awareness among investors about the RELIANCE Mutual funds
is limited in this regard.
4. 2 NEED FOR THE STUDY
A mutual fund is a type of professionally managed collective investment
vehicle that pools money from many investors to purchase securities. As the
mutual fund sector has developed, there's been a growing acceptance by most
policy holders that the assured return era is a thing of the past. The mutual fund
companies are focusing on the Market Linked Plans.
This study would help in explaining the investors perception of risk &
return & their preference for different schemes of mutual fund. All this would help
in giving suggestions to strengthen the marketing efforts of insurance companies
and expand their business.
39
4.3 OBJECTIVES:
PRIMARY OBJECTIVES:
The Primary objective of the study is to assess the investors perception towards the
mutual funds of RELIANCE
SECONDARY OBJECTIVES:
To understand how a mutual fund works.
To identify the advantages of RELIANCE mutual funds over other forms of
investments.
To compare the RELIANCE mutual funds with other types of investments.
To know investors perception of risk & return & their preference for different
schemes of mutual fund.
4.4 SCOPE OF THE STUDY
The scope of the study is to analyze and interpret the investors
perception towards the RELIANCE Mutual Funds and over other
investments.
The research records around a general awareness on then mutual fund
and other investment level and precaution towards RELIANCE Mutual
Funds.
Analyze and interpret the factors affecting the choice of Mutual Fund
and investors preference on the RELIANCE Mutual Fund and over other
investment Schemes.
40
4.5. RESEARCH DESIGN

The research design indicates the types of research methodology undertaken to
collect the information for the study. The research design selected for this study for
this project is both descriptive research design and hypothesis testing research design.
The purpose of descriptive research is to get the characteristic of an individual toward
an objectives or the variable of interest in a situation. A descriptive research design is
the one that simply describes something such as demographic characteristic of group
(or) customers of the product.
Descriptive research study provides clear specification of who, what, when, why,
where and how aspects of the research. It involves more specific hypothesis and
testing of them through statistical inference techniques. However the descriptive does
not find the cause and effect relationship among variables.
SAMPLING DESIGN
The selected samples based on the stratified random sampling.
A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the research would adopt in selecting items
for the sample. Sample design may as well lay down the number of items to be
included in the sample that is the size of the sample. Sample design is determined
before data are collected.
Stratified Random sampling:
41
Under stratified random sampling the population is divided in to several. Subpopulation that are individually more homogeneous than the population, (the different
sub population are called strata) and then we select items from each stratum to
constitute a sample.
Since each stratum is homogenous than the population, we are able to get
more precise, estimate for each stratum and by estimating more accurately each of the
component part, we get a better estimates of the whole. In brief stratified sampling
results in more reliable and detailed information.
HYPOTHESIS
Hypothesis may be defined as a proposition or a set forth as an explanation for
the occurrence of some specified group of phenomena either asserted merely as a
provisional conjecture to guide some investigation or accepted as highly probable in
the light of established facts .
HYPOTHESIS: I
Chi Square
NULL HYPOTHESIS:
Ho = There is no significant difference exists between the monthly income and
investment in RELIANCE Mutual funds.
ALTERNATIVE HYPOTHESIS:H 1= There is significant difference exists between the monthly income and
investment in RELIANCE Mutual funds.
HYPOTHESIS: II
Chi Square
NULL HYPOTHESIS:Ho =There is no significant difference exists between the place of living and
awareness about RELIANCE Mutual funds.
42
ALTERNATIVE HYPOTHESIS:
H1 = There is no significant difference exists between the place of living and
awareness about RELIANCE Mutual funds.
HYPOTHESIS: III
Correlation
NULL HYPOTHESIS:
Ho=There is no significant difference exists between the monthly income and
awareness about RELIANCE Mutual funds
ALTERNATIVE HYPOTHESIS:H1 =There is significant difference exists between the monthly income and awareness
about RELIANCE Mutual funds.
HYPOTHESIS: IV
Regression
NULL HYPOTHESIS:
Ho =There is no significant difference exists between the Occupation and the
Preference for a specific scheme.
H1 = There is significant difference exists between the Occupation and the
Preference for a specific scheme.
HYPOTHESIS: V
NULL HYPOTHESIS:
Ho =There is no significant difference exists between the age and the mutual fund
schemes
43
H1 = There is no significant difference exists between the age and the mutual fund
schemes
DATA COLLECTION METHOD

PRIMARY DATA:
For this study, this questionnaire type survey is used to collect the primary
data because of its extreme flexibility. This primary data pertain demographic and
socio-economic characteristics of the investors, attitudes and opinion of investors,
their awareness and knowledge.
SECONDARY DATA:
Secondary data has been collected from magazines and journals like TAKE
STOCK, from the books of AMFI and HDFC, and SEBI INVESTORS
GUIDE
Secondary data need for conducting this research work was collected both
internally and externally. The required internal data was collected from company
brochures, etc, and the external source was magazines, other business forms,
websites, investors, bank, mutual fund industry, post office, statistical and
management books and so on. The research did here is desk research, that is
collection and analysis were made in secondary data.
I. POPULATION
The universe or population is the specified group of people, firms, conditions,
activities, etc.., which form the pivotal point of the research project. For developing
and using a sample, it becomes a primary duty to define the population from which
draw the sample.
II.SAMPLING FRAME
A sampling frame may be defined as the listing of the general components of
the individual units that comprise the defined population.
44
III.SAMPLING METHOD AND SAMPLE SIZE

Non-probability sampling method was used for this research study in nonprobability sampling, the method adopted is convenience-sampling method. The
investigator has selected the sample according to this convenience. He has included
those items in the sample, which he thought were most typical of population.
NON-PROBABILITY SAMPLING
Non probability sampling method is one, which does not provide every item
in the universe with a known chance of being include in the sample. The selection
process is partially subjective.
CONVENIENCE SMAPLING
A convenience sample is obtained by selecting convenient population units.
Convenience samples are prove to bias by their very nature selecting population
elements which are convenient to choose almost always make them special or
different from the best of the elements in the population in same way.
IV. SAMPLE SIZE DETERMINANTS

The sample size is usually determined by the sampling method selected and
nature of the research. Hence considering this, the sample size is determined. The
sampling here is non-probability and convenience sapling for that more number of
sample sizes is preferred.
v. SAMPLE SIZE:
The method of sampling used here was Convenience sampling. The survey
was conducted in Chennai with sample size of 250 customers of State of India.
Secondary data
45
Secondary data has been collected from magazines and journals like TAKE
STOCK, from the books of AMFI and HDFC, and SEBI INVESTORS
GUIDE.
The task here depends on whether probability or non-probability sampling. As it was
taken as non-probability sampling, large number of sampling is preferred to precise
the sampling error estimate. The sample size here includes existing and potential
investors, which is 250.
QUESTIONNAIRE DESIGN
The researcher used a questionnaire method to collect the data from the mutual
fund investors and other investors for the research work.
The questionnaire framed for the research study is a structured questionnaire
in which all the questions are predetermined before conducting the survey. The form
of questionnaire is of both closed and open type
A pilot survey was administrated to revise and complement survey questions
before preparing the final questionnaire. All the variable were to be
Part I to be demographic details on age, sex, occupation, income, education.
Part II Six point scale of one to Two, with 1 representing HDFC income fund and 6
representing Templeton India Income Builder.
Part III Five point scale of one to five, with 1 representing Mutual fund and 5
representing Co-operative society.
Part IV Four point scale of one to four, with 1 representing Equity and 4 representing
balanced fund.
Part V Three point scale of one to three, 1 representing Recurring Deposits and 3
representing Chit fund.
46
QUESTIONNAIRE
A questionnaire is simply a formalized set of questions for eliciting
information.
TYPES OF QUESTIONS
The different types of questions used for the study are:
Open- ended questions.
Closed- ended questions.
Multiple choice questions.
TOOLS FOR ANALYSIS

PERCENTAGE ANALYSIS
FORMULA:
Percentage= (number of responses/total number of respondents)*100.
CHI SQUARE TEST:
(O-E)2/E
O=Observed frequency
E=Expected frequency.
Chi-square is used to test whether difference between observed and expected
frequency are frequent.
CORRELATION:
47
Its studies the joint variation of two or more variables for determining the
amount of correlation between two or more variables
REGRESSION:
Regression is the determination of a statistical relationship between two or
more variables. In simple regression, we have only two variables, one variable
(defined as independent) is the cause of the behavior of another one (defined as
dependent variable). The basic relationship between X and Y.
ANOVA:
Analysis of Variance (abbreviated as ANOVA) It is the essentially a
procedure for testing the deference among different groups of data for homogeneity.
The essence of ANOVA is that the total amount of variation in a set of data is broken
down into two types, that amount which can be attributed to chance and that amount
which can be attributed to specified causes. ANOVA consists in splitting the variance
for analytical purposes.
4.6 LIMITATIONS OF THE STUDY
Only 250 customers of RELIANCE from Chennai were selected for the study
because only the investors in mutual fund with sufficient knowledge about
various forms of investment will be able to make a comparison between them.
Lack of time because of which some of the information could not be collected.
Unwillingness & Bias from the part of respondents limits the coverage of the
Study.
4.7 EXPECTED CONTRIBUTION OF THE STUDY

The project was a great learning experience. Each moment spent during the
project brought new experiences and practical learning which is not confined within
the text book but gave exposure to the real world constraints in applying all that we
have read in books. Following are some learning attained during the project.
48
The training very usefully to understand about the mutual fund investment
functioning, mutual fund superiority and over other investment position.
The study gave ample opportunity to learn about preparation of mutual fund
investors and other investors analysis and collect they are primary repots and
overall investment industrial report identified.
The project usefully to understand about the RELIANCE Mutual funds, bank
deposit, chit fund, bond, post office savings.
Thus the project was a great learning experience and will be so helpful for my
future.
49
CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
Table1. Shows Distribution of the respondents based on the age.
S.No
1
2
3
4
5
Age
BELOW 20
20 -30
30 - 40
40 - 50
ABOVE 50
Total
Respondents
Percent
30
86
69
42
23
250
12
34.4
27.6
16.8
9.2
100
Source: Data gathered from the primary source

50
Interpretation:
S.No
Gender
MALE
FEMALE
Total
Respondents
Percent
186
74.4
64
25.6
250
100
Table1.
Shows that
distribution
of
the
respondents
based
on
the
age
group.
The highest 34.4% of the respondents were 20-30 years age group followed by 12%
of the respondents were below 20 years age group and 27.6% of the respondents were
30-40 years age group and 16.8% of the respondents were 40-50 years and 9.2% of
the respondents were above 50 years age.
Table2. Shows Distribution of the respondents based on the gender:

Interpretation:
Table2. Shows that distribution of the respondents based on the gender.
The highest 74.4% of the respondents were male followed by 25.6% of the
respondents were female
51
Table3. Shows distribution of the respondents based on the Educational

Qualification:
S.No
1
2
Education
UG
PG
Respondents
Percent
72
113
28.8
45.2
PROFESSIONAL
46
18.4
HSC/SSLC
19
7.6
250
100
Total

Interpretation:
Table3. Shows that distribution of the respondents based on the educational
qualification.
52
The highest 45.2% of the respondents were PG and 28.8% of the respondents were
UG and
18.4% of the respondents were Professional and 7.6% of the
respondents were HSC/SSLC.
Table4. Shows distribution of the respondents based on the Occupation:
S.No
1
2
3
4
5
Occupation
PROFESSIONAL
OWN BUSINESS
PRIVATE EMPLOYEE
GOVT EMPLOYEE
OTHERS
Total
Respondents
Percent
19
112
61
42
16
250
7.6
44.8
24.4
16.8
6.4
100
Table4. Shows that distribution of the respondents based on the occupation.

The highest 44.8% of the respondents were own business and 7.6% of the respondents
were professional and 24.4% of the respondents were private employee and 16.8% of
the respondents were Govt employee and 6.4% of the respondents were others.
53
Table5. Shows distribution of the respondents based on the Place of living:

Respondents
Percent
58
92
41
23.2
36.8
16.4
CITY
59
23.6
Total
250
100
S.No
1
2
3
Place Of Living
URBAN
SEMI URBAN
RURAL

Interpretation:
Table5. Shows that distribution of the respondents based on the place of living:
54
The highest 36.8% of the respondents are SEMI-URBAN and 23.2% of the
respondents are URBAN and 16.4% of the respondents are RURAL and 23.6% of the
respondents are CITY.
Table6. Shows distribution of the respondents based on the monthly income:
S.N0
1
2
3
4
5
Monthly Income
LESS THAN 10000
10000 -15000
15000 -20000
20000 -25000
ABOVE 25000
Total
Respondents
Percent
11
90
69
59
21
250
4.4
36
27.6
23.6
8.4
100

Interpretation:
Table6. Shows that distribution of the respondents based on the monthly income:
55
The highest 36% of the respondents were 10000-15000 and 4.4% of the respondents
were below 10000 and 27.6% of the respondents were15000-20000 and 23.6% of the
respondents were 20000-25000 and 8.4% of the respondents were above 25000.
Table7. Shows distribution of the respondents based on the awareness about fund
is:
S.No
1
2
3
4
Awareness
about Respondents
fund
101
HIGH
90
MEDIUM
45
LOW
14
NOT AWARE
Total
250
Percent
40.4
36
18
5.6
100

Interpretation:
Table7. Shows that distribution of the respondents based on the awareness about
mutual fund is:
56
The highest 40.4% of the respondents were High awareness and 36% of the
respondents were Medium awareness and 18% of the respondents were Low
awareness and 5.6% of the respondents were Not awareness.
Table8. Shows distribution of the respondents based on the investment in

RELIANCE Mutual funds so far is:
S.No
1
2
3
4
5
Investment
LESS THAN 10000
10000 -25000
25000 - 50000
ABOVE 50000
NOT INVESTED
Total
Respondents
23
135
41
47
4
Percent
9.2
54
16.4
18.8
1.6
250
100

Interpretation:
Table8. Shows that distribution of the respondents based on the investment in
RELIANCE Mutual funds so far is:
57
The highest 54% of the respondents were invest 10000-25000 and 9.2% of the
respondents were invest less than 10000 and 16.4% of the respondents were invest
25000 - 50000 and 18.8% of the respondents were invest above 50000 and 1.6% of
the respondents not invested.
Table 9. Shows distribution of the respondents based on the RELIANCE Mutual

funds are a great way to let money grow:
S.No
1
2
3
4
Money grow
STRONGLY AGREE
AGREE
STRONGLY DISAGREE
DISAGREE
Total
Respondents
Percent
52
106
40
52
250
20.8
42.4
16
20.8
100

Interpretation:
Table9. Shows that distribution of the respondents based on the RELIANCE
Mutual funds are a great way to let money grow:
The highest 42.4% of the respondents were agree to let money grow and 20.8% of
the respondents were strongly agree to let money grow and 16% of the respondents
58
were strongly disagree to let money grow

disagree to let money grow.
and 20.8% of the respondents were
Table10. Shows Distribution of the respondents based on the choose the best
types of investments based on the satisfaction available from their return:
S.No
1
2
3
4
5
6
Satisfaction investment
RELIANCE Mutual funds
Bank FD
Chit funds
Bonds
Co-Operative Society
Post office Savings
Total
Respondent
80
50
40
35
30
15
250
Percent
32
20
16
14
12
6
100

Interpretation:
Table10. Shows that distribution of the respondents based on the choose the best
types of investments based on the satisfaction available from their return.
The highest 32% of the respondents were choose on mutual fund and 20% of the
respondents were choose bank Fd and 16% of the respondents were choose Chit funds
59
and 14% of the respondents were choose bonds and 12% of the respondent were
choose co- operative society and 6%of the respondent were choose post office
savings.
Table11. Shows distribution of the respondents based on the risk perception

about mutual fund:
S.Nos
1
2
3
4
Risk perception
HIGH RISK
RISK
SAFE
VERY SAFE
Total
Respondents
Percent
60
113
31
46
250
24
45.2
12.4
18.4
100

Interpretation:
Table11. Shows that distribution of the respondents based on the risk perception
about mutual fund:
The highest 45.2% of the respondents were Risk and 24% of the respondents were
High-risk 12.4% of the respondents were Safe and 18.4% of the respondents were
Very safe.
60
Table12. Shows distribution of the respondents based on the following schemes/

funds would like to invest in mutual fund:
S.No
1
2
3
SCHEMES/FUNDS
EQUITY ORIENTED
DEBT ORIENTED
BALANCED ORIENTED
Total
Respondents
Percent
96
108
46
38.4
43.2
18.4
250
100

Interpretation:
Table12. Shows that distribution of the respondents based on the following
schemes/funds would like to invest in:
The highest 45.2% of the respondents were Risk and 24% of the respondents were
High-risk 12.4% of the respondents were Safe and 18.4% of the respondents were
Very safe.
61
Table13. Shows distribution of the respondents based on the following gives

better return:
S.no
1
2
3
4
Better return
EQUITY
INCOME FUND
GILT FUND
BALANCED FUND
Total
Respondents
Percent
51
113
69
17
250
20.4
45.2
27.6
6.8
100

Interpretation:
Table13. Shows that distribution of the respondents based on the following gives
better return:
The highest 45.2% of the respondents were Income fund gives better return and
20.4% of the respondents were Equity gives better return 27.6% of the respondents
were Gilt fund and 6.8% of the respondents were Balanced fund.
62
Table14. Shows distribution of the respondents based on the influenced to invest

in mutual fund:
S.No
1
2
3
4
5
Influenced
FRIENDS
RELATIVES
MEDIA
BROKERS
OTHERS
Total
Respondents
Percent
59
77
68
39
7
250
23.6
30.8
27.2
15.6
2.8
100
Interpretation:
Table14. Shows that distribution of the respondents based on the influenced to
invest in mutual fund:
The highest 30.8% of the respondents were influenced Relatives and 23.6% of the
respondents were influenced Friends 27.2% of the respondents were influenced Media
and 15.6% of the respondents were influenced Brokers and 15.6% of the respondents
were others.
63
Table15. Shows distribution of the respondents based on the mutual fund

schemes fulfill objective of maximizing the return from the investment:
Respondents
Percent
S.No
Return from
TO A GREAT EXTENT
83
33.2
TO SOME EXTENT
133
53.2
DOES NOT FULFILL
34
13.6
Total
250
100
Interpretation:
Table15. Shows that distribution of the respondents based on the mutual fund
schemes fulfill objective of maximizing the return from the investment:
The highest 53.2% of the respondents were and 23.6% of the respondents were
influenced Friends 27.2% of the respondents were influenced Media and 15.6% of the
respondents were influenced Brokers and 15.6% of the respondents were others.
64
Table16. Shows distribution of the respondents based on the investors want to

invest on monthly savings:
Respondents
Percent
S.no
Monthly invest
1
2
RECURRING DEPOSITS 106

85
SIP
CHIT FUND
59
23.6
Total
250
100
42.4
34
Interpretation:
Table16. Shows that distribution of the respondents based on the investors want
to invest on monthly savings:
The highest 42.4% of the respondents were invest in recurring deposits saving scheme
and 34% of the respondents were invest in Sip saving scheme 23.6% of the
respondents were invest in chit fund saving scheme.
65
Table17. Shows Distribution of the respondents based on the choose the best
income fund based on the satisfaction available from their return:
S.No
1
2
3
4
5
6
Income fund Returns

Reliance
Grinlays super saver
Chole Triple ace
IDBI prim income fund
Prudential ICICI flexible income plan
Templeton India Income builder
Total
Respondents
80
30
15
35
40
50
250
Percent
32
12
6
14
16
20
250

Interpretation:
Table17ss. Shows that distribution of the respondents based on the choose the
best income fund based on the satisfaction available from their return.
The highest 32% of the respondents were choose HDFC income fund and 12% of the
respondents were choose Grindlays super saver fund and 6% of the respondents were
choose Chola Triple ace and 16% of the respondents were choose ICICI Pru income
66
fund and 14% of the respondent were choose IDBI income fund and 6%of the
respondent were choose TEMPLETON income fund.
ANALYSIS USING CHI-SQUARE WITH SPSS
EXAMPLE - 1
DEPENDENT ATTRIBUTE:
INDEPENDENT ATTRIBUTE:
Investment in mutual fund so far is

Monthly income
FIXING OF HYPOTHESIS
H0: There is a significant relationship between the attributes
H1: There is no significant relationship between the attributes
N-Par Tests
Chi-Square Test
Frequencies
67
MONTHLY
Test
StatisticsINCOME
Observed N
MONTHLY
INCOME
LESS
THAN 11
Chi-Square
88.08
10000
df
4
10000 -15000
90
Asymp. Sig.
3.367E-18
15000 -20000
69
20000 -25000
59
ABOVE 25000
21
Total
250
Expected
Residual IN RELIANCE
YOUR N
INVESTMENT
MUTUAL FUNDS SO FAR IS
50
-39
203.2
4
50
40
7.70598E-43
50
19
50
9
50
-29
YOUR INVESTMENT IN RELIANCE MUTUAL FUNDS SO FAR IS

Observed N Expected N
Residual
LESS
THAN
23
50
-27
10000
10000 -25000
135
50
85
25000 - 50000
41
50
-9
ABOVE 50000
47
50
-3
NOT INVESTED
4
50
-46
Total
250
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 50.0.
Interpretation:
Since, the calculated value is less than the table value, H0 (null hypothesis) is
accepted.
Conclusion:
Thus, it is concluded that there is no significant difference between the monthly
income and investors investment in RELIANCE Mutual funds so far is finding.
EXAMPLE - 2
DEPENDENT ATTRIBUTE:
Awareness about the mutual fund
INDEPENDENT ATTRIBUTE: Place of living
FIXING OF HYPOTHESIS
H0: There is a significant relationship between the attributes
H1: There is no significant relationship between the attributes
68
N-Par Tests
Chi-Square Test
Frequencies
PLACE OF LIVING
URBAN
SEMI URBAN
RURAL
CITY
Total
Observed
N
58
92
41
59
250
Expected N
Residual
62.5
62.5
62.5
62.5
-4.5
29.5
-21.5
-3.5
YOUR AWARENESS ABOUT RELIANCE MUTUAL FUNDS IS

Observed
Expected N
Residual
N
HIGH
101
62.5
38.5
MEDIUM
90
62.5
27.5
LOW
45
62.5
-17.5
NOT AWARE
14
62.5
-48.5
Total
250
Test Statistics
PLACE OF LIVING
Chi-Square
Df
Asymp. Sig.
21.84
3
7.043E-05
YOUR
AWARENESS
ABOUT
RELIANCE MUTUAL FUNDS IS
78.352
3
6.92604E-17
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 62.5.
69
Interpretation:
accepted.
Conclusion:
Thus, it is concluded that there is no significant difference between the place of living
and investors awareness of the mutual fund.
2.Correlations
MONTHLY INCOME
MONTHLY
INCOME
YOUR
INVESTMENT
IN RELIANCE
MUTUAL
FUNDS
SO
FAR IS
Pearson
Correlation
Sig. (2-tailed)
0.213602365
250
250
0.213602365
YOUR
INVESTMENT
IN
RELIANCE
MUTUAL
FUNDS Pearson
SO FAR IS
Correlation
0.000674486
Sig. (2-tailed)
0.000674486
250
**. Correlation is significant at the 0.01 level (2-tailed).
70
250
Nonparametric Correlations
MONTHLY
INCOME
Kendall's
tau_b
MONTHLY
INCOME
YOUR
INVESTMENT
IN RELIANCE
MUTUAL
FUNDS SO FAR
IS
Spearma
n's rho
MONTHLY
INCOME
YOUR
INVESTMENT
IN RELIANCE
Correlation
Coefficient
Sig. (2-tailed)
YOUR
INVESTMEN
T
IN
RELIANCE
MUTUAL
FUNDS SO
FAR IS
0.181507
3.4848E+308
0.000798
N
Correlation
Coefficient
250
0.181507019
250
1
Sig. (2-tailed)
0.000797563
3.5E+308
N
Correlation
Coefficient
Sig. (2-tailed)
250
1
250
0.203805
3.4848E+308
0.001194
N
Correlation
Coefficient
250
0.203805159
250
1
71
MUTUAL
FUNDS SO FAR
IS
Sig. (2-tailed)
N
0.001193747
250
3.5E+308
250
**. Correlation is significant at the 0.01 level (2-tailed).
3.Regression
Variables Entere/Removedb
Model
1
Variables
Entered
Occupational
Variables
Removed
3.4848E+308
Method
Enter
a. All requested variables entered.

b. Dependent Variable: WHICH THE FOLLOWING SCHEMES/FUNDS YOU
WOULD LIKE TO INVEST IN
Model Summary:
Model
R Square
Adjusted
Square
0.23162
52
0.0536502 0.049834317
44
Interpretation:
72
R Std. Error of the

Estimate
0.70972
accepted.
Conclusion:
Thus, it is concluded that there is no significant difference between the occupation
and investors like to invest schemes in RELIANCE Mutual funds.
4.ANOVA
Oneway
Relationship between the experience and material issues method.
Ho: There is no significant difference between the occupation and the following
schemes/funds would like to invest in.
H1: There is significant difference between the occupation and the following
schemes/funds would like to invest in.
Mod
el
1
Regressi
on
Residual
Sum
of df
Squares
7.081832142
1
Mean
Square
7.081832
124.9181679
0.503702
248
Sig.
14.05956
0.00022
Total
132
249
a. Predictors: (Constant), OCCUPATION
b. Dependent Variable: WHICH THE FOLLOWING SCHEMES/FUNDS YOU
WOULD LIKE TO INVEST IN
Coefficients
73
Model
Unstandardized
Coefficients
Standardized t
Coefficients
Std. Error
(Constant)
OCCUPATION
Interpretation:
Sig.
Beta
0.124618038
10.94621
0.161685665
0.043120686 0.231625
3.749608 0.00022
accepted.
Conclusion:
Thus, it is concluded that there is no significant difference between the occupation
and investors like to invest schemes in RELIANCE Mutual funds.
5. Kolmogorov-Smirnov
NPar Tests
Relationship between the respondent age and objective of maximizing the return from
the investment.
Ho: There is no significant difference between the respondent age and objective of
maximizing the return from the investment.
H1: There is significant difference between the respondent age and objective of
maximizing the return from the investment.
AGE
N
Normal
Parametersa
5.22E23
1.364095446
Mean
Std. Deviation
Most
Extreme Absolute
Differences
Positive
Negative
KolmogorovSmirnov Z
Asymp. Sig. (2tailed)
250
2.768
OBJECTIVE
MAXIMIZING
RETURN FROM
INVESTMENT
250
1.804
1.145173213
0.212775341
0.656741378
0.28531754
0.212775341
-0.131224659
3.364273543
0.24668246
-0.28531754
4.511266417
0
74
OF
THE
THE
a. Test distribution is Normal.

Interpretation:
accepted.
Conclusion:
Thus, it is concluded that there is no significant difference between the respondent age
and objective of maximizing the return from the investment.
CHAPTER 6
6. FINDINGS OF THE STUDY:
1. The comparison made between mutual fund & other forms of investment shows
those mutual fund products gives a higher, stable return than others. The rate of
return available from mutual fund is quite higher than other forms of investment.
Apart from this mutual fund gives different or diversified portfolios to the
investor.
2. From the Analysis it is inferred that 34.4% of the respondents were 20-30 years
age group followed by 12% of the respondents were below 20 years age group and
27.6% of the respondents were 30-40 years age group and 16.8% of the
respondents were 40-50 years and 9.2% of the respondents were above 50 years
age.
3. From the Analysis it is inferred that 74.4% of the respondents were male followed
by 25.6% of the respondents were female
4. From the Analysis it is inferred that 45.2% of the respondents were PG and 28.8%
of the respondents were UG and 18.4% of the respondents were Professional and
7.6% of the respondents were HSC/SSLC.
5. From the Analysis it is inferred that 44.8% of the respondents were own business
and 7.6% of the respondents were professional and 24.4% of the respondents were
private employee and 16.8% of the respondents were Govt employee and 6.4% of
the respondents were others.
75
6. From the Analysis it is inferred that 36.8% of the respondents are SEMI-URBAN
and 23.2% of the respondents are URBAN and 16.4% of the respondents are
RURAL and 23.6% of the respondents are CITY.
7. From the Analysis it is inferred that 36% of the respondents were 10000-15000
and 4.4% of the respondents were below 10000 and 27.6% of the respondents
were15000-20000 and 23.6% of the respondents were 20000-25000 and 8.4% of
the respondents were above 25000.
8. From the Analysis it is inferred that 40.4% of the respondents were High
awareness and 36% of the respondents were Medium awareness and 18% of the
respondents were Low awareness and 5.6% of the respondents were not
awareness.
9. From the Analysis it is inferred that 54% of the respondents were invest 1000025000 and 9.2% of the respondents were invest less than 10000 and 16.4% of the
respondents were invest 25000 - 50000 and 18.8% of the respondents were invest
above 50000 and 1.6% of the respondents not invested.
10. From the Analysis it is inferred that 42.4% of the respondents were agree to let
money grow and 20.8% of the respondents were strongly agree to let money grow
and 16% of the respondents were strongly disagree to let money grow and 20.8%
of the respondents were disagree to let money grow.
11. From the Analysis it is inferred that 45.2% of the respondents were Risk and 24%
of the respondents were High-risk 12.4% of the respondents were Safe and 18.4%
of the respondents were Very safe.
12. From the Analysis it is inferred that Risk and 45.2% of the respondents were 24%
of the respondents were High-risk 12.4% of the respondents were Safe and 18.4%
of the respondents were Very safe.
13. From the Analysis it is inferred that 45.2% of the respondents were Income fund
gives better return and 20.4% of the respondents were Equity gives better return
27.6% of the respondents were Gilt fund and 6.8% of the respondents were
Balanced fund.
14. From the Analysis it is inferred that 30.8% of the respondents were influenced
Relatives and 23.6% of the respondents were influenced Friends 27.2% of the
respondents were influenced Media and 15.6% of the respondents were influenced
Brokers and 15.6% of the respondents were others.
15. From the Analysis it is inferred that 53.2% of the respondents were and 23.6% of
the respondents were influenced Friends 27.2% of the respondents were
influenced Media and 15.6% of the respondents were influenced Brokers and
15.6% of the respondents were others.
76
16. From the Analysis it is inferred that 42.4% of the respondents were invest in
recurring deposits saving scheme and 34% of the respondents were invest in Sip
saving scheme 23.6% of the respondents were invest in chit fund saving scheme.
CHAPTER 7
SUGGESTIONS
Investment in real estate:
Mutual fund is allowed to invest in real estates. Real estates gives higher profit
& there by enables the investors in RELIANCE Mutual funds to get higher
returns for their investment. SEBI must allow RELIANCE Mutual funds to
invest either directly in real estate business or invest in companies shares that
do real estate business.
Higher awareness among investors:
Mutual fund companies should bring greater awareness in the investors mind
about their different schemes. Since the bank interest rates are falling, the
mutual fund companies must bring awareness among investors about their
products & enable the investors to get a better return for their investments.
Tax rebate for investing in mutual fund:
Tax rebate should be provided to the investor for investing in mutual fund so
as to encourage them to invest in RELIANCE Mutual funds apart from ELSS.
Innovative products or funds:
77
Mutual fund companies must create innovative funds for the investor keeping
in mind the investment period of the investor. For e.g.: Standard charted
mutual fund offered medium term plan for the investor which gives a better
return when the investor looks for a investment period of 6 months 1years.
CHAPTER 8
CONCLUSION
The study on investors perception towards the RELIANCE Mutual funds
enables us to find over other investments plans, level, structure, benefits and
superiority of RELIANCE Mutual funds level compare with other investments and
mutual funds. This study constitute a sample of 250 different kinds of investors they
diversification of investment plans, opinion of the investors has been collected
through structured questionnaire and study confined to the area of different areas in
Chennai. Most of the investors have very good knowledge about RELIANCE Mutual
funds investment and other investment plan and they are satisfied with the returns and
with the performance of the investments scheme. Very easily long term and short term
wealth can be created and investors are aware of that and this is a scheme which is
disciplined and it gives good return and it protects the investors when the market falls.
Conclusion is that almost all the investors are satisfied with the returns and with the
performance of the schemes. Based on the findings and analysis it can be concluded
that the investors are satisfied with the returns and performance of RELIANCE
78
Mutual funds superiority and over other investments plan from other mutual fund
companies.
CHAPTER 9
BIBLIOGRAPHY
1. A.N ARORA & S.ARORA
Statistical For Management
THE U.S PUBLISHED.
2. UMA SEKARAN
Research Methods for Business
3. AUTHOR:
DR. S GURUSAMY
FINANCIAL SERCICES READER,
INVESTMENT
DG VAISHNAV COLLEGE
PUBLISHED BY MARGHAM
MUTUAL FUNDS AND OTHER
4. AUTHOR:
INVESTMEN ANALYZIS AND
PLANNING
BURTON G. MALKIEL
PUBLISHED BY THE INVESTMENT COMPANY OF THE U.S.
AUTHOR:
79
C R KOTHARI
SECOND EDITION
METHODOLOGY
PUBLISHE BY WISHWA PRAKASHAN
WEBSITES:
www.amfifndia.com
www.iepindia.com
www.mutualfundsindia.com
CHAPTER 10
ANNEXURE
QUESTIONNAIRE
DEMOGRAPHIC DETAILS:
1. Name__________________________________
2. Address________________________________
3. Age
Below 20
22 to 30
30 to 40
40 to 50
Above 50
4. Gender
Male
Female
5. Education qualification
Under graduate
post graduate
professional
HSC/SSLC
80
RESEARCH
6. Occupation
Professional
Own Business
Private employee
Govt employee
Others, please specify_________
7. Place of living
urban
Semi urban
Rural
city
8. Monthly Income
Less than 10000
10000 to 15000
15000 to 20000
20000 to 25000
Above 25000
9. Your awareness about RELIANCE mutual funds is
High
Medium
Low
Not aware
10. Your Investment in RELIANCE Mutual funds so far is
Less than 10,000
10, 000 to 25,000
25,000 to 50,000
Above 50,000
Not Invested
11. RELIANCE Mutual funds are a great way to let your money grow
Strongly agree
Agree
Strongly Disagree
Disagree
Neither Agree nor Disagree
12. Choose the best types of investments based on the satisfaction available from
their return.
Mutual fund
Bank Fund
Chit funds
Bonds
Co-operative society
81
Post office savings

13. What is your risk perception about RELIANCE mutual fund
High risky
Risky
Safe
Very Safe
14. Which the following schemes / funds of RELIANCE you would like to invest in
Equity oriented
Debt oriented
Balanced fund
15. Which of the following gives you better return from RELIANCE
Equity
Income fund
Gilt fund
Balanced fund
16. Who influenced you to invest in RELIANCE mutual funds?
Friends
Relatives
Media
Brokers
Others
17.Does the RELIANCE mutual fund schemes fulfill your objective of maximizing
the return
from the investment
To a great extent
To some extent
Does not fulfill
18. Where do you want to invest youre your monthly savings
Recurring deposits
SIP
Chit fund
19.Rank the following Income funds based on the satisfaction available from their
Returns.
RELIANCE Income fund
Grindlays Super saver
Chola Triple ace
IDBI prim income fund
ICICI pru
82
Templeton India income builder

20. Give your suggestion to improve the RELIANCE mutual funds?
_____________________________________________________________
83

Investors Perception Towards The Mutual Funds - Reliance Securities

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INVESTORS PERCEPTION TOWARDS THE RELIANCE MUTUAL FUNDS

2.1 INDUSTRY PROFILE

DATA ANALYSIS AND INTERPRETATION

Distribution of the respondents based on the age

Distribution of the respondents based on the gender

Distribution of the respondents based on the monthly

RELIANCE Mutual funds are a great way to let

the best types of investments based on the

following schemes/ funds would like to invest in

fund schemes fulfill objective of maximizing the

Distribution of the respondents based on the choose

available from their return

Distribution of the respondents based on the age

Distribution of the respondents based on the gender

Distribution of the respondents based on the

Distribution of the respondents based on the

Distribution of the respondents based on the Place of

Distribution of the respondents based on the monthly

Distribution of the respondents based on the

Distribution of the respondents based on the

Distribution of the respondents based on the

Distribution of the respondents based on the choose

Distribution of the respondents based on the risk

Distribution of the respondents based on the

Distribution of the respondents based on the

Distribution of the respondents based on the

Distribution of the respondents based on the mutual

Distribution of the respondents based on the choose

Mobilized Assets Under Management Mobilization as % of

Phase 2 1987 1993 [Entry of Public Sector Funds]

Phase 3 1993 1996 [Emergence of Private Funds]

accounted for 59% of mobilisations. Mobilisations during this period of 7 months in

India across the development phases discussed above

Advantages of Mutual Fund:

6. Helps in financial planning:

Dividend received is exempt

Capital gains-long term

With indexation 20%

Without indexation 10%

Short-term applicable tax bracket.

Very few companies accepting FD investments.

Mutual Funds lock in period is low & liquidity is very high.

And give higher returns generally.

Reason 3 stock markets remain good but long term only.

The number of negative returns / loss

Types of Mutual Fund:

d) Focused debt fund:

A Close-ended scheme or fund has a stipulated maturity period. Example: 5 to

Advantages of Income Funds over Bank Fixed Deposits:

Income Fund & other schemes of Mutual Fund.

Next target of Mutual Fund!

Investment managers manage Mutual Funds & therefore they bring in

1. 8% savings bonds [taxable]:

6.50% savings bonds [non-taxable]:

3. Public provident fund:

2.2 COMPANY PROFILE

conversion of outstanding equity instruments, the net worth of the

company will increase to about Rs 4,100 crore.