Analysis of Mutual Fund Schemes of Reliance Money

Published on Nov 30, 2023

Abstract

A mutual fund is an investment vehicle where a person or group of persons, called mutual fund managers, choose a group of stocks and sell them in one package. Mutual Funds are generally lower risk investment for a beginner or intermediate investor because;

 The managers are experts.
 Having a large number and variety of stocks is less risky than owning one stock
 If the prices per share of some stocks go down, others
can go up, possibly keeping the price (NET ASSET VALUE), of the mutual fund stable or going up.

Mutual funds are also recommended for those who do not have the time, energy or desire to research their own stocks. Every mutual fund and fund family comes with a prospectus read the prospectus before investing. The prospectus not only helps you to understand what you are investing in, but it helps you to understand mutual funds and stocks in general.

Structural changes in the global economic environment have, over the year, led to the emerged of a strong market economy and facilitated the growth of the mutual fund industry, particularly since the 1980s’. A market economy depends more on growth led by the stock market than by bank finance. Since the mutual fund industry is a strong pillar of the stock market system, it got a boost with the emergence of a strong market economy. Mutual funds found increasing acceptance also because they have the capacity to absorb the instability and uncertainties that characterize the stock market system. The rise in inflation, reduction in real interest and growing complexities in the market provide tremendous opportunities to mutual funds. For these reasons, mutual fund industry began to thrive well particularly during the 1990s’ in not only the developed countries, but the newly industrialized and developing countries as well.

Objectives

1. To study the various offers of the company, services ranging from equities, commodities, portfolio management etc.
2. The objective of the study was to collect information on the various securities revolving in the market & thus providing customer service to clients to help them invest capital in profitable plans.
3. To know about returns of the fund which one is beneficial.
4. To know their portfolio management.

The study covers various aspects of mutual fund like basic concept, types, future of mutual fund in India & the schemes etc. But it does not cover these aspects in detail relating with the legal aspects and the provisions made in different acts. The time horizon selected for the study is from April 2007 to March 2008. All the schemes have been analyzed with the consideration of this time frame.

Introduction

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, IPO’s, Life & General Insurance products, Off share Investments, Money Transfer, Money Changing and Credit Cards.

Reliance Mutual Fund (RMF) is one of India’s 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.

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 India’s 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.