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PDF | The Indian mutual fund industry has come a long way since its inception in The industry has witnessed sufficient growth on all. ACKNOWLEDGEMENT With regard to my Summer Project with ICICI Mutual Fund in India, I would like to thank each and every one who offered help, guideline. PROJECT REPORT ON RELIANCE MUTUAL FUND SUBMITTED FOR THE PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION.

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A PROJECT REPORT ON Mutual Fund: A Globally Proven Investment STRUCTURE OF A MUTUAL FUND: India has a legal framework within which . DOWNLOAD FULL PDF EBOOK here { }. Mutual Funds Complete Project Report - Download as Word Doc .doc /.docx), PDF File .pdf), Text File .txt) or read online. A complete report on Performance. funds by using of Statistical tools and ratio analysis of mutual fund schemes (tax Key words: Mutual Fund, Open ended schemes, Tax Saving Scheme, Ratio.

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The aim of these schemes is to provide capital appreciation over medium to long term. These schemes normally invest a major part of their fund in equities and are willing to bear short-term decline in value for possible future appreciation. Income Schemes: Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures.

Capital appreciation in such schemes may be limited. Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. These schemes invest in both shares and fixed income securities, in the proportion indicated in their offer documents. Money Market Schemes: Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate income.

These schemes generally invest in safer, short-term instruments, such as treasury bills, certificates of deposit, commercial paper and inter-bank call money.

Other schemes Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under Sec. Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the Nifty The portfolio of these schemes will consist of only those stocks that constitute the index. The percentage of each stock to the total holding will be identical to the stocks index weightage. And hence, the returns from such schemes would be more or less equivalent to those of the Index.

Sector Specific Schemes: While these funds may give higher returns, they are more risky compared to diversified funds. Advantages of Mutual Funds Diversification — It can help an investor diversify their portfolio with a minimum investment.

Spreading investments across a range of securities can help to reduce risk.

A stock mutual fund, for example, invests in many stocks. This minimizes the risk attributed to a concentrated position.

If a few securities in the mutual fund lose value or become worthless, the loss maybe offset by other securities that appreciate in value. Further diversification can be achieved by investing in multiple funds which invest in different sectors. Professional Management- Mutual funds are managed and supervised by investment professional. This eliminates the investor of the difficult task of trying to time the market.

Well regulated- Mutual funds are subject to many government regulations that protect investors from fraud. Liquidity- It's easy to get money out of a mutual fund. Convenience- we can download mutual fund shares by mail, phone, or over the Internet. Low cost- Mutual fund expenses are often no more than 1. Expenses for Index Funds are less than that, because index funds are not actively managed.

Instead, they automatically download stock in companies that are listed on a specific index Transparency- The mutual fund offer document provides all the information about the fund and the scheme.

This document is also called as the prospectus or the fund offer document, and is very detailed and contains most of the relevant information that an investor would need.

Choice of schemes — there are different schemes which an investor can choose from according to his investment goals and risk appetite. The AMC is usually a private limited company in which the sponsors and their associates or joint venture partners are the shareholders. It is the AMC that employs fund managers and analysts, and other personnel. It is the AMC that handles all operational matters of a mutual fund — from launching schemes to managing them to interacting with investors.

Fund Offer document The mutual fund is required to file with SEBI a detailed information memorandum, in a prescribed format that provides all the information about the fund and the scheme. This document is also called as the prospectus or the fund offer document, and is very detailed and contains most of the relevant information that an investor would need Trust The Mutual Fund is constituted as a Trust in accordance with the provisions of the Indian Trusts Act, by the Sponsor.

The trust deed is registered under the Indian Registration Act, The Trust appoints the Trustees who are responsible to the investors of the fund. Trustees Trustees are like internal regulators in a mutual fund, and their job is to protect the interests of the unit holders. Trustees are appointed by the sponsors, and can be either individuals or corporate bodies.

In order to ensure they are impartial and fair, SEBI rules mandate that at least two-thirds of the trustees be independent, i.

Mutual Funds Complete Project Report | Fixed Income | Investing

Trustees appoint the AMC, which subsequently, seeks their approval for the work it does, and reports periodically to them on how the business being run. Custodian A custodian handles the investment back office of a mutual fund. Its responsibilities include receipt and delivery of securities, collection of income, distribution of dividends and segregation of assets between the schemes.

The sponsor of a mutual fund cannot act as a custodian to the fund. This condition, formulated in the interest of investors, ensures that the assets of a mutual fund are not in the hands of its sponsor.

For example, Deutsche Bank is a custodian, but it cannot service Deutsche Mutual Fund, its mutual fund arm. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date. The NAV is usually calculated on a daily basis. In terms of corporate valuations, the book values of assets less liability. Whatever the Profit is earned out of sold stocks by the Mutual fund is called Receivables. Accrued Income: Income received from the investment made by the Mutual Fund.

Whatever they have to pay to other companies are called liabilities.

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Accrued Expenses: Day to day expenses such as postal expenses, Printing, Advertisement Expenses etc. Equity shares of Various Companies. Market Value of Shares is Rs. Sale price Is the price we pay when we invest in a scheme. Also called Offer Price. It may include a sales load.

Mutual Funds Complete Project Report

Such prices are NAV related Redemption Price Is the price at which close-ended schemes redeem their units on maturity. The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered.

Fund Management Actively managed funds: Mutual Fund managers are professionals. They are considered professionals because of their knowledge and experience. Managers are hired to actively manage mutual fund portfolios. Instead of seeking to track market performance, active fund management tries to beat it.

To do this, fund managers "actively" download and sell individual securities. For an actively managed fund, the corresponding index can be used as a performance benchmark.

Is an active fund a better investment because it is trying to outperform the market?

Not necessarily. While there is the potential for higher returns with active funds, they are more unpredictable and more risky. Fund styles usually fall within the following three categories. Fund Styles: The manager invests in stocks believed to be currently undervalued by the market. The manager selects stocks they believe have a strong potential for beating the market. The manager looks for a combination of both growth and value stocks.

To determine the style of a mutual fund, consult the prospectus as well as other sources that review mutual funds. Don't be surprised if the information conflicts. Although a prospectus may state a specific fund style, the style may change. Value stocks held in the portfolio over a period of time may become growth stocks and vice versa. Other research may give a more current and accurate account of the style of the fund. Passively Managed Funds: Passively managed mutual funds are an easily understood, relatively safe approach to investing in broad segments of the market.

They are used by less experienced investors as well as sophisticated institutional investors with large portfolios. Indexing has been called investing on autopilot. The metaphor is an appropriate one as managed funds can be viewed as having a pilot at the controls. When it comes to flying an airplane, both approaches are widely used. Broad-based market index funds make asset allocation and diversification easy. The passive nature of indexing eliminates any concerns about human error or management tenure.

Low portfolio turnover. Less downloading and selling of securities means lower costs and fewer tax consequences. Low operational expenses. Indexing is considerably less expensive than active fund management.

Asset bloat. Portfolio size is not a concern with index funds. It is a matter of record that index funds have outperformed the majority of managed funds over a variety of time periods. You make money from your mutual fund investment when: The fund earns income on its investments, and distributes it to you in the form of dividends. The fund produces capital gains by selling securities at a profit, and distributes those gains to you.

You sell your shares of the fund at a higher price than you paid for them IX. Risk Every type of investment, including mutual funds, involves risk. Risk refers to the possibility that you will lose money both principal and any earnings or fail to make money on an investment. A fund's investment objective and its holdings are influential factors in determining how risky a fund is.

Reading the prospectus will help you to understand the risk associated with that particular fund. Generally speaking, risk and potential return are related. Higher risks are usually taken with the expectation of higher returns at the cost of increased volatility.

Mutual Funds Complete Project Report

The school of thought when investing in mutual funds suggests that the longer your investment time horizon is the less affected you should be by short-term volatility.

Therefore, the shorter your investment time horizon, the more concerned you should be with short-term volatility and higher risk. Defining Mutual fund risk Different mutual fund categories as previously defined have inherently different risk characteristics and should not be compared side by side.

A bond fund with below-average risk, for example, should not be compared to a stock fund with below average risk. Of all the asset classes, cash investments i. Bonds typically experience more short-term price swings, and in turn have generated higher long-term returns. However, stocks historically have been subject to the greatest short-term price fluctuations—and have provided the highest long-term returns.

Investors looking for a fund which incorporates all asset classes may consider a balanced or hybrid mutual fund. These funds can be very conservative or very aggressive.

Asset allocation portfolios are mutual funds that invest in other mutual funds with different asset classes. At the discretion of the manager s , securities are bought, sold, and shifted between funds with different asset classes according to market conditions.

Mutual funds face risks based on the investments they hold. For example, a bond fund faces interest rate risk and income risk. Bond values are inversely related to interest rates.

If interest rates go up, bond values will go down and vice versa. Bond income is also affected by the change in interest rates. Income risk is greater for a short-term bond fund than for a long-term bond fund. Similarly, a sector stock fund which invests in a single industry, such as telecommunications is at risk that its price will decline due to developments in its industry. A stock fund that invests across many industries is more sheltered from this risk defined as industry risk.

Following is a glossary of some risks to consider when investing in mutual funds. Call Risk. The possibility that falling interest rates will cause a bond issuer to redeem—or call—its high-yielding bond before the bond's maturity date Country Risk.

The possibility that political events a war, national elections , financial problems rising inflation, government default , or natural disasters an earthquake, a poor harvest will weaken a country's economy and cause investments in that country to decline.

Credit Risk. The possibility that a bond issuer will fail to repay interest and principal in a timely manner. Also called default risk. Currency Risk. The possibility that returns could be reduced for Americans investing in foreign securities because of a rise in the value of the U.

Also called exchange-rate risk. Income Risk. The possibility that a fixed-income fund's dividends will decline as a result of falling overall interest rates.

Industry Risk. The possibility that a group of stocks in a single industry will decline in price due to developments in that industry. It is also used to measure the systematic risk. Systematic risk means risks which are external to the organization like competition, government policies. They are non-diversifiable risks. Beta is calculated using regression analysis, Beta can also be defined as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market.

A beta less than 1 means that the security will be less volatile than the market. A beta greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1. Many utilities stocks have a beta of less than 1.

Conversely, most hi-tech NASDAQ-based stocks have a beta greater than 1, offering the possibility of a higher rate of return but also posing more risk. Alpha Alpha takes the volatility in price of a mutual fund and compares its risk adjusted performance to a benchmark index. It is calculated as a return which is earned in excess of the return generated by CAPM. Alpha is often considered to represent the value that a portfolio manager adds to or subtracts from a fund's return.

In the second prong, Reliance has created a series of informationpacked presentations which help dispel misinformationGroup. This mega business house dominates this key area in the financial sector. Figures for March show that it has emerged as the top Indian mutual fund with average assets under management of Rs.

A sharp rise infixed maturity plans FMPs andcollection of Rs. InAUMrankings, Reliance continues to be in thenumber one spot. Thecompanyalsowalked away with seven other scheme prizes — five of them being outright winners — in the Gulf Lipper Awards.

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The company also won the India Equities award in the 5-yearPerformance category. HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit.

No concept of Market Lots. Change of address, Signature, Dividend Mandate, registration of power of attorney, transmission etc. SPEED-e offers secured means of transaction processing eliminating preparation of instruction slips and submission of the same across the counter to the depository participant. Online Mutual funds investment allows investor to invest on- line in around 19 Mutual Fund companies.

However investors must appreciate that the risk profile of tax-saving funds tends to be proportionately higher. Flagship diversified equity funds Reliance Growth Fund and Reliance Equity Fund from Reliance Mutual Fund have emerged as top performers in their segment across time horizons.

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However investors should note that these funds are managed aggressively; also they have displayed an opportunistic streak by moving fluidly across market segments large caps, mid caps to clock superior growth. RTSF is likely to be a similar high risk - high return investment proposition within the tax-saving funds segment. It is designed for those investors who are willing to invest regularly rather than making a lump sum investment.

It is just like a recurring deposit with the post office or bank where we deposit some amount every month.

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The difference here is that the amount is invested in a mutual fund. Mutual Fund makes investment according to their objective. They collect fund from investor and invests it. Every fund has an objective and pattern of investing. There are various kinds of mutual funds. There are equity funds and debt funds.

Every fund has a NAV net asset value which is the value per unit. It is calculated as the total asset is divided by the number of outstanding units. As the value of asset changes, nav also changes.

The best way to invest in stock market is mutual fund through Systematic Investment Plan. But to get the benefit of an SIP, a long term horizon is must. To give an idea of the types of schemes available.

Explore the recent developments in the mutual funds in India To give an idea about the regulations of mutual funds. To analyze reliance mutual fund strategy against its competitor. The manipulation of things , concepts or symbols for the purpose of generalizing to extend ,correct or verify knowledge ,whether that knowledge through objective.

In this project has to use facts or information. Already used available ,and analyze these to make a critical evolution of the material. Primary data: Primary data collect through observation ,or through direct communication or doing experiments. Secondary data:Secondary data means already available through books ,journals , magazines ,newspaper.

Both schemes are open ended but Reliance Growth fund is more valuable for Reliance Mutual Fund than reliance vision Fund. In it boths schemes are open ended but reliance money manager is more beneficial for reliance mutual fund. In sector specific scheme we have taken Reliance media and entertainment fund and Reliance Pharma fund scheme both is more efficient for Reliance Mutual Fund.

There is a Good investment plan and saving scheme in reliance Mutual Fund. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weightages.

Balanced fund: Their investment portfolio includes both debt and equity. As a result, on the risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments.

Debt fund: They invest only in debt instruments, and are a good option for investors averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit CD , commercial paper CP and call money. Put your money into any of these debt funds depending on your investment horizon and needs. Floaters invest in debt instruments which have variable coupon rate.

Funds are allocated to equities, derivatives and money markets. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month.

ICICI Prudential Asset Management Company, in a span of just over eight years, has forged a position of pre-eminence in the Indian Mutual Fund industry as one of the largest asset management companies in the country with assets under management of Rs.

The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors spread across 68 cities in the country. ICICI Bank is second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalization Free float holding excludes all promoter holdings, strategic investments and cross holdings among public sector entities. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.

Our UK subsidiary has established branches in Belgium and Germany. Headquartered in London, Prudential plc and its affiliated companies together constitute one of the world's leading financial services groups. Prudential provides insurance and financial services in a number of markets around the world, including in Asia, the US, the UK, Europe and the Middle East. Prudential has been writing life insurance in the United Kingdom for years and has had the largest long-term fund in the United Kingdom, for over a century.