PROJECT REPORT ON MUTUAL FUND AS AN INVESTMENT OPTION SUBMITTED FOR THE PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION (INDUSTRY

INTEGRATED) TO SRUSTI ACADEMY OF MANAGEMENT

UNDER GUIDENCE OF: RASMI RANJAN DAS

SUMMITTED BY: NIRAJ KUMAR SAH

PREFACE The successful completion of this project was a unique experience for me because by visiting many place and interacting various person, I achieved a better knowledge about the corporate world. The experience which I gained by doing this project was essential at this turning point of my career this project is being submitted with content detailed analysis of the research under taken by me. The research provides an opportunity to the student to devote his/her skills knowledge and competencies required during the technical session. The research is on the topic Mutual Fund AS An Investment option

ACKNOWLEDGEMENT I would like to express my appreciation and gratitude to various people who have shared their valuable time and made possible this project ,through their direct indirect cooperation . My honourable SIR MR.N.S. NANDA (HOD) and MR P.K.SAHOO (FACULITY) Srusti academy of management, for allowing me to work on this project and provide necessary help. I thank my respected faculties ,dear friend & colleagues ,who help me in every possible ways , support me and encouraged me to explore new dimensions.

NIRAJ KUMAR SAH MBA(3RD SEMISTER) SRUSTI ACADEMYOF MANAGMENT BHUBANESWAR

Declaration & N.O.C

I-------------------------------------------------student of 1st year MBA bearing Registration Number-------------------------------- do here by declare that I have understood the evaluation parameters of summer project as stipulated by BPUT properly and undertake that I shall submit my project report from 24.09.1130.09.11. I understand that my physical presence is required for evaluation of my project report. In case I fail to do so my project may not be evaluated at all and the case will be referred to the evaluation committee for final decision.

Full Signature of the student

Countersigned by Internal Guide

CONTENTS

1 .INTRODUCTION 2. MUTUAL FUND INDUSTRY ANALYSIS 3. COMPANY PROFILE OF RELIANCE INDUSTRY 4. VARIOUS ASSET CLASSES IN WHICH MUTUAL FUND INVESTED 5. FINDINGS AND SUGGESTIONS 6. CONCLUSION

INTRODUCTION There are a lot of investment option available today in the financial market for an investor with invest able surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions. However they proved too costly for a small investor. These investors have found a good shelter with the mutual funds. Like most developed and developing countries the mutual fund cult has been catching on in India. The reasons for this interesting occurrence are: 1. Mutual funds make it easy and less costly for investors to satisfy their need for capital growth, income and/or income preservation. 2. Mutual fund brings the benefits of diversification and money management to the individual investor, providing an Opportunity for financial success that was once available only to a select few. There are several investment option toward the investors in India . A mutual fund is one of the investment option to the investors. The following investment option are_________ 1 2 3 4 5 6 7 8 9 10 SAVING ACCOUNT FIXED DEPOSITS INSAURANCE MUTUAL FUND POST OFFICE,NSC SHARES/DEBENTURES GOLD/SILVER REAL ESTATE PPF PF

Mutual fund Mutual funds are the vehicles to mobilize money from the investors, to invest in different markets and securities in line with the investment objectives agreed upon, between the mutual fund and the investors. The primary role is to assist investors in earning an income or building their wealth, by participating in the opportunities available in various securities and markets. A Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invest by the fund manager in different type of securities depending upon the objective of the scheme. These could range from share to debenture to money market instruments. The income earned through these investments and the capital appreciation realized are shared by its units holders in proportion the number of unit owned by them. Thus a mutual fund is a most suitable investment for the common man as it offers an opportunity invest in a diversified, professionally managed portfolio at a relatively low cost. A Mutual fund is an investment tool that allow small investors access to a well diversified portfolio of equities , bonds and other securities. Each shareholder participate in the gain and loss of fund. It is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money mangers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. Mutual fund investors make money either by receiving dividends and interest from their investments, or by the rise in value of the securities. Dividends, interest and profits from the sale of any securities (capital gains) are passed on to the shareholders in the form of distributions. And shareholders generally are allowed to sell (redeem) their shares at any time for the closing market price of the fund on that day .

ADVANTAGES OF MUTUAL FUND There are numerous benefits of investing in mutual funds and one of the key reasons for its phenomenal success in the developed markets like US and UK is the range of benefits they offer, which are unmatched by most other investment avenues. Diversification Using mutual funds can help an investor diversify their portfolio with a minimum investment. When investing in a single fund, an investor is actually investing in numerous securities. Spreading your investment across a range of securities can help to reduce risk. A stock mutual fund, for example, invests in many stocks - hundreds or even thousands. This minimizes the risk attributed to a concentrated position. If a few securities in the mutual fund lose value or become worthless, the loss may be offset by other securities that appreciate in value. Further diversification can be achieved by investing in multiple funds which invest in different sectors or categories. This helps to reduce the risk associated with a specific industry or category. Diversification may help to reduce risk but will never completely eliminate it. It is possible to lose all or part of your investment. Professional Management: Mutual funds are managed and supervised by investment professionals. As per the stated objectives set forth in the prospectus, along with prevailing market conditions and other factors, the mutual fund manager will decide when to buy or sell securities. This eliminates the investor of the difficult task of trying to time the market. Furthermore, mutual funds can eliminate the cost an investor would incur when proper due diligence is given to researching securities. This cost of managing numerous securities is dispersed among all the investors according to the amount of shares they own with a fraction of each dollar invested used to cover the expenses of the fund. What does this mean? Fund managers have more money to research more securities more in depth than the average investor. Convenience: With most mutual funds, buying and selling shares, changing distribution options, and obtaining information can be accomplished conveniently by telephone, by mail, or online. Although a fund's shareholder is relieved of the day-to-day tasks involved in researching, buying, and selling securities, an investor will still need to evaluate a mutual fund based on investment goals and risk tolerance before making a purchase decision. Investors should always read the prospectus carefully before investing in any mutual fund.

Liquidity: Mutual fund shares are liquid and orders to buy or sell are placed during market hours. However, orders are not executed until the close of business when the NAV (Net Average Value) of the fund can be determined. Fees or commissions may or may not be applicable. Fees and commissions are determined by the specific fund and the institution that executes the order. Investment control Once an investment is made with a mutual fund, they make it convenient for the investor to make further purchases with very little documentation. Regulatory control The regulator, Securities and exchange board of India (SEBI) has mandated strict checks and balances in the structure of mutual funds and their activities. These are detailed in the subsequent units. Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds and also prescribe disclosure and accounting requirements. Such a high level of regulation seeks to protect the interest of investors.

Minimum Initial Investment: Most funds have a minimum initial purchase of $2,500 but some are as low as $1,000. If you purchase a mutual fund in an IRA, the minimum initial purchase requirement tends to be lower. You can buy some funds for as little as $50 per month if you agree to dollar-cost average, or invest a certain dollar amount each month or quarter. Affordability A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment objective of the scheme. An investor can buy in to a portfolio of equities, which would otherwise be extremely expensive.

LIMITATION OF MUTUAL FUND

No Guarantees
The value of your mutual fund investment, unlike a bank deposit, could fall and be worth less than the principle initially invested. And, while a money market fund seeks a stable share price, its yield fluctuates, unlike a certificate of deposit. In addition, mutual funds are not insured or guaranteed by an agency of the U.S. government. Bond funds, unlike purchasing a bond directly, will not re-pay the principle at a set point in time.

Choice Overhead
Over 800 mutual fund schemes offered by 38 mutual funds and multiple options within those schemes make it difficult for investors to choose between them. Greater dissemination of industry information through various media and availability of professional advisors in the market should help investors handle the overload.

Lack of Portfolio customization

Some securities houses offer portfolio management schemes to large investors. In a portfolio management scheme, the investor has better control over of what securities are bought and sold on this behalf.

MUTUAL FUND INDUSTRY ANALYSIS

The Mutual fund industry started in India in 1963 with the formation of unit trust of India, at the initiative of the government of India and reserve bank. The primary objective at that time was to attract the small investors and it was made possible through the collective efforts of the Government of India and the Reserve Bank of India. The history of mutual fund industry in India can be better understood divided into following phases. Phase 1. Establishment and Growth of Unit Trust of India - 1964-87 Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an act of Parliament. UTI was set up by the Reserve Bank of India and it continued to operate under the regulatory control of the RBI until the two were de-linked in 1978 and the entire control was transferred in the hands of Industrial Development Bank of India (IDBI). UTI launched its first scheme in 1964, named as Unit Scheme 1964 (US-64), which attracted the largest number of investors in any single investment scheme over the years. UTI launched more innovative schemes in 1970s and 80s to suit the needs of different investors. It launched ULIP in 1971, six more schemes between 1981-84, Children's Gift Growth Fund and India Fund (India's first offshore fund) in 1986, Master share (India's first equity diversified scheme) in 1987 and Monthly Income Schemes (offering assured returns) during 1990s. By the end of 1987, UTI's assets under management grew ten times to Rs 6700 crores. Phase II. Entry of Public Sector Funds - 1987-1993

The Indian mutual fund industry witnessed a number of public sector players entering the market in the year 1987. In November 1987, SBI Mutual Fund from the State Bank of India became the first non-UTI mutual fund in India. SBI Mutual Fund was later followed by Can bank Mutual Fund, LIC Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. By 1993, the assets under management of the industry increased seven times to Rs. 47,004 crores. However, UTI remained to be the leader with about 80% market share.

Phase III. Emergence of Private Secor Funds - 1993-96

The permission given to private sector funds including foreign fund management companies (most of them entering through joint ventures with Indian promoters) to enter the mutual fund industry in 1993, provided a wide range of choice to investors and more competition in the

industry. Private funds introduced innovative products, investment techniques and investorservicing technology. By 1994-95, about 11 private sector funds had launched their schemes. Phase IV. Growth and SEBI Regulation - 1996-2004 The mutual fund industry witnessed robust growth and stricter regulation from the SEBI after the year 1996. The mobilisation of funds and the number of players operating in the industry reached new heights as investors started showing more interest in mutual funds. Invetors' interests were safeguarded by SEBI and the Government offered tax benefits to the investors in order to encourage them. SEBI (Mutual Funds) Regulations, 1996 was introduced by SEBI that set uniform standards for all mutual funds in India. The Union Budget in 1999 exempted all dividend incomes in the hands of investors from income tax. Various Investor Awareness Programmes were launched during this phase, both by SEBI and AMFI, with an objective to educate investors and make them informed about the mutual fund industry. In February 2003, the UTI Act was repealed and UTI was stripped of its Special legal status as a trust formed by an Act of Parliament. The primary objective behind this was to bring all mutual fund players on the same level. UTI was re-organised into two parts: 1. The Specified Undertaking, 2. The UTI Mutual Fund. Phase V. Growth and Consolidation - 2004 Onwards The industry has also witnessed several mergers and acquisitions recently, examples of which are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund and PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more international mutual fund players have entered India like Fidelity, Franklin Templeton Mutual Fund etc. There were 29 funds as at the end of March 2006.This is a continuing phase of growth of the industry through consolidation and entry of new international and private sector players.

COMPONEY PROFILE OF RELIANCE INDUSTRY

RELIANCE INDUSTRIES LIMITED

Reliance Group Holdings has grown from a small office data-processing equipment firm in 1961 into a major insurance and financial-services group in one generation under one chief. Reliance's insurance operations constitute the nation's 27th- largest property and casualty operation. The parent company also includes a development subsidiary in commercial real estate. Reliance's international consulting group contains several subsidiaries in energy, environment, and natural resources consulting. A financial arm invests in other businesses, primarily television stations. Reliance Insurance started as the Fire Association of Philadelphia in 1817, organized by 5 hose and 11 engine fire companies. It became the nation's first association of volunteer fire departments. Business got a boost as a result of the Great Chicago Fire of1871.The association soon developed a field of agents to write policiesacross the country. For the first two years, shareholders receiveddividends twice a year of $5 a share, which increased gradually to $10 in 1876. In 1972, the Reliance insurance group divided its pool so that Reliance Insurance Company and its Subsidiaries handled most standard lines, while United Pacific Insurance Company handled the nonstandard and other operations. In 1977, the company moved into real estate, forming Continental Cities Corporation, which became Reliance Development Group, Inc. This division handled all real estate operations of the parent company and other subsidiaries. Reliance Capital Group, L.P. constituted the investment branch of the Reliance conglomerate. In December 1989, Reliance Capital sold its investment, Days Corporation, parent company of Days Inn of America, the world's third- largest hotel chain; it had been purchased in 1984. Reliance Industries Limited. The Group's principal activity is to produce and distribute plastic and intermediates, polyester filament yarn, fiber intermediates, polymer intermediates, crackers, chemicals, textiles, oil and gas. The prefining segment includes production and marketing operations of the Petroleum refinery. The petrochemicals segment includes

production and marketing operations of petrochemical products namely, High and Low density Polyethylene.

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'. The Reliance Group is a living testimony to his indomitable will, single- minded dedication and an unrelenting commitment to his goals.

RELIANCE MUTUAL FUND

Re l i a n c e M u t u a l F u n d , a p a r t o f A n i l D h i r u b h a i A m b a n i G r o u p , i s o n e o f t h e f a s t e s t growing mutual funds in the country. Reliance mutual fund was started in 1995. Within 2 days reliance launched two schemes Reliance Vision fund and Reliance Growth fund. Reliance Mutual Fund ('RMF'/ 'Mutual Fund') is one of Indias leading Mutual Funds, with Average Assets Under Management (AAUM) of Rs. 1,01,259 Crores and an investor count of over 66.90 Lakh folios. Reliance Mutual Fund, a part of the Reliance Group, is one of the fastest growing mutual funds in India. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 159 cities across the country. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. 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. Reliance Mutual Fund Limited (RCAM) was approved as the Asset Management Company for the Mutual Fund by SEBI consults their letter no IIMARP/1264/95

dated June 30, 1995.The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12, 1995. RCAM is authorized to act as Investment Manager of Reliance mutual fund. Reliance mutual fund schemes are managed by Reliance Capital Asset Management limited(RCA) 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 share holders. One of the core objectives of Reliance Capital Asset Management Ltd. is to identify issues considered sensitive by global corporate standards, and implement policies/guidelines in conformity with the best practices as an ongoing process. Reliance Capital Limited is a Non- Banking Finance Company. Reliance Capital Limited is one of the Indias leading and fastest growing financial services companies, and ranks among the top three private sector financial services and banking companies, in terms of net worth. Anil Dhirubhai Ambani Group firm Reliance Mutual Fund on Wednesday 27 may 2011, announced a dividend of up to 50% for its two schemes: Reliance Regular Savings Fund and Reliance Equity Opportunities Fund. The company would pay a dividend of 50% or Rs5 per unit and 30% or Rs3 per piece under the equity and balanced options of Reliance Regular Savings Fund, respectively, it said in a statement. The fund house has also announced a dividend of 20% or Rs2 per unit under the retail a dend.

Theoretical Background of Reliance Mutual Fund

Reliance Capital Asset management limited,(RCAM) a company registered under the companies Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund. Reliance Capital Asset management limited was approved as the Asset management Company for the mutual fund by SEBI with their letter ni IIMARP/1264/95. On june30,1995. The Mutual Fund has entered into an Investment M anagement Agreement (IMA) with RCAM on May 12, 1995 and was amended on August 12, 1997 in line with SEBI. It has launched 35 schemes till date.

Reliance Mutual fund at a glance

1. At the end of June 2011, Reliance Mutual Fund has a corpus of over Rs1,08,332crore for over 71 lakh investors. 2.It has investor base of over 8.5 Million as on March 31 2010. 3.Accelerated growth in investor base-66.89% year on year.

4.Reliance Mutual fund has over 10 years of extensive market experience over 26schemes combined with a strong performance track around. 5.It has footprint in over 118 cities. 6.It has wide portfolio of 26 well rounded products to meet varying investor requirements. 7.Reliance Mutual Fund is amongst the few mutual funds in the industry to offer subscription , Redemption and Switch through online transactions. 8.Reliance Equity fund has over NFO (6thfeb-7thmarch 2006), the largest ever collection of Rs 5579(1.29 billion dollars)min the history of the indian Mutual fund.

India's Best Offering: Reliance Mutual Fund

Investing has become global. Today, a lot of country are waking up to the reality that in order to gain financial growth, they must encourage their citizens to not only save but also invest. Mutual funds are fast becoming the mode of investment in the world. In India, a mutual fund company called the Reliance Mutual Fund is making waves. Reliance is considered India's best when it comes to mutual funds. Its investors number to 4.6 billion people. Reliance Capital Asset Management Limited ranks in the top 3 of India's banking companies and financial sector in terms of net value. The Anil Dhirubhai Ambani Group owns Reliance; they are the fastest growing investment company in India so far. To meet the erratic demand of the financial market, Reliance Mutual Fund designed a distinct portfolio that is sure to please potential investors. Reliance Capital Asset Management Limited manages RMF.

VISION AND STATEMENT

Reliance Mutual Fund is so popular because it is investor focused. They show their dedication by continually dishing out innovative offerings and unparalleled service initiatives. It is their goal to become respected globally for helping people achieve their financial dreams through excellent organization governance and customer care. Reliance Mutual fund wants a high performance environment that is geared at making investors happy. RMF aims to do business lawfully and without stepping on other people. They want to be able to create portfolios that will ensure the liquidity of the investment of people in India as well as abroad. Reliance Mutual Fund also wants to make sure that their shareholders realize reasonable profit, by deploying funds wisely. Taking appropriate risks to reach the company's potential is also one of Reliance mutual funds objectives.

Some of the achievements for Reliance Mutual Funds

1. Best Mutual Fund debt 2011 2. Winner for the Best Mutual Fund House and 3. Runner up for the Best Equity Fund House 2010 4. CNBC TV18 - CRISIL Mutual Fund of the Year Award for 2009/2007 5. Liper fund award India 20076.Liper fund award Gulf 2007

Management Team
Board of Directors
Kanu Doshi Sushil Tripathi Manu Chadha Soumen Ghosh

Management Team
Sundeep Sikka - CEO Himanshu Vyapak - Deputy CEO Sunil B. Singhania Head - Equity Investments Amitabh Mohanty Head - Fixed Income

Equity Fund Managers

Shailesh Raj Bhan Ashwani Kumar Krishan Daga

Omprakash S. Kuckian Govind Agrawal

Debt Fund Managers

Amit Tripathi Prashant Pimple

Head Of Departments

Pradeep Andrade Milind Gandhi Rajesh Derhgawen Vinay Nigudkar Bhalchandra Joshi Geeta Chandran Muneesh Sud Sanjay Kumar Singh

- Infrastructure & Admin - Chief Financial Officer - Head- HR, Admin & Infrastructure -Information Technology - Head- Service Delivery & Operations Excel -Operations & Settlement - Legal, Secretarial & Compliance - Head - Product Development

OBJECTIVES 1. STUDY OF MUTUAL FUND IS AN ALTERNATIVE OPTION 2. TO GIVE AN IDEA ABOUT MUTUAL FUND 3. TO GIVE AN IDEA OF MUTUAL FUND INVESTED IN VARIOUS ASSETS

VARIOUS ASSET CLASSES IN WHICH MUTUAL FUND INVESTED

1 2 3 EQUITY FUND DEBT FUND GOLD FUND

EQUITY FUND
Mutual funds pool the monies of individual investors to help them diversify their investments and gain greater returns over time. Equity mutual funds deal only in companies that are publicly traded, buying and selling stock using active or passive management. Equity funds typically are categorized by market capitalization. Market cap is the value of a company based on the share price multiplied by the number of outstanding shares. Large-cap funds purchase stock in companies with market caps hovering around $10 billion. At the opposite end of the spectrum, small-cap funds invest in companies with market caps below $1 billion. FEATURES
1 . A stock or any other security representing an ownership interest.

2. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholders' equity". 3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage. 4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage. 5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio.

Advantages of investing in equity mutual funds

Liquidity: Mutual funds are highly liquid, meaning that they are easily converted to cash by redeeming theshares with the investment company. Share redemption can be done as easily as a phone call or online.

Diversification: A share of a mutual fund represents ownership of a portion of all the holdings owned by the mutual fund. For example, an investor who owns one share of the sample fund above owns some of all the stocks in the fund. By diversifying the assets in a portfolio, i.e., by owning a variety of financial assets, an investor can reduce the risk associated with investing. This is analogous to not putting all your eggs in one basket, as the saying goes. Affordability: While some funds require a sizeable initial investment, many have no such requirement. Furthermore, many mutual funds that have a minimum initial investment requirement waive this requirement for a retirement account and/or for an account to which regular monthly contributions are made. Many mutual funds are no-load funds, meaning that there are no transaction costs at the time of the investment or upon redemption. It is usually the case that there is no charge for moving money from one fund to another within a family of funds, e.g., from one Royce Funds mutual fund to a different Royce Funds mutual fund. Recordkeeping: The mutual fund company keeps track of how many shares an investor has purchased or redeemed and the dates of the transactions. Most mutual fund companies send investors periodic reports in addition to an annual summary. The annual summary typically reports: the dollar amount and date of dividend distributions made by the fund (not the stocks held by the fund) to the investor during the year, and whether the dividends were reinvested the dollar amount and date of any redemptions taken by the investor during the year the cost basis (amount invested) for the shares redeemed and the holding period for tax purposes (short-term or long-term) Daily share pricing (NAV): The share price of a mutual fund is determined at the end of each trading day as described above. This means that regardless of the time of day at which the investor buys shares of a mutual fund, the price per share is set at the close of the trading day.

Equity Schemes of Reliance Mutual Fund

1. 2. 3. 4. 5. 6. 7. 8. Reliance Equity Fund Reliance Index Fund Nifty Plan Reliance Index Fund Sensex Plan Reliance Vision Fund Reliance Regular Saving Fund Reliance Equity advantage fund Reliance quant plus fund Reliance equity opportunity fund

DEBT FUND
DEBT funds are specialized types of funds that invest in bonds and other debt instruments. Since they invest in debt instruments like government bonds, corporate bonds, debuntures etc the returns are nearly guaranteed and at the same time, since they are safe instruments their returns are also only equivalent to bank deposits. Around 8-9% per annum. Debt mutual funds are simply mutual funds that invest in an assortment of debt instruments like government bonds, fixed deposits and approved private deposits. Debt funds are primarily focused on getting regular returns. The fund invests in deposits with maturing tenures and varying interest rates. So when investing in these funds you should take care to match your individual time frame to that of the fund. The current income is also received in the form of dividend so the cash flow is generally tax free in the hands of investors. Debt funds are also highly liquid as they can be converted to cash easily and are useful in creating a well balanced portfolio. 1 year HDFC Monthly Income Plan and 3 years Reliance Monthly Income plan are two of the top performing Mutual funds that invest in debt instruments in India. A debt fund is an investment product that pools the contributions of a number of investors for the purpose of buying and holding fixed-income debt instruments. According to Reuters India, expected returns for debt funds range from 6 to 12 %. Debt funds utilize a variety of debt instruments to maintain a steady income, including corporate and government bonds, securitized debt products and money market investment. A debt mutual fund, also called a bond fund, is a mutual fund portfolio completely comprised of debt securities, which pay interest and principal at either fixed or variable rates.

Unlike a growth mutual fund, which seeks to secure value for investors primarily through capital gains, debt mutual funds are designed to generate steady income based on a constant principal

value. For this reason, debt mutual funds are considered a low-risk option for conservative investors seeking stable and predictable returns. Debt security is the technical name for a bond. Any security that pays interest at a fixed or variable rate on a principal amount (par value) for a specific period qualifies as debt security. These items include, but are not limited to, long-term (more than one year) corporate and government bonds, short-term (less than one year) money market items, and collateralized debt securities .

ADVANTAGES OF DEBT FUND

Investment can begin at a small amount No need to track the market daily and decide on what stock to buy and sell We get professional investment expertise because the fund manager who is trading in stocks with our money is very experienced and the chances of him making a profit out of our money is considerably higher than our chances.

RELIANCE DEBT FUND ARE 1 Reliance monthly income plan 2 Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt Plan 3 Reliance Income Fund 4 Reliance Medium Term Fund 5 Reliance Short Term Fund 6 Reliance Liquid Fund 7 Reliance Liquid plus Fund

GOLD FUND
A mutual fund or exchange-traded fund (ETF) that invests primarily in gold-producing companies or gold bullion. The price of shares within a gold fund should correlate very closely to the spot price of gold itself, assuming the fund holds the majority of its assets in bullion or in the stocks and bonds of gold miners and manufacturers. While many mutual funds focus on manufacturing and production stocks within precious metals, a few new ETF entries have focused primarily on ownership of gold bullion. Gold funds are a valuable tool for investors, including speculators (gold can be a very volatile commodity) and those wishing to hedge against geopolitical instability. Gold is also valuable as a bet against a falling currency. By investing in a gold fund, a retail or institutional investor can gain exposure to this asset without the hassle of taking delivery of physical gold assets, which is often required in the commodities market.

Investing in gold or other precious metals is very popular these days, but precious metals investing requires special attention to the logistics of the purchase. Gold ETF funds provide a method for investing in gold that eliminates these issues. The logistics referred to are the problems of insurance, storage, moving, and reselling, along with many others .

Benefits of Gold as an Investment

Diversification -- Gold belongs to a distinct asset class and may thus be an effective means of portfolio diversification. Low Correlation -- Gold has a low correlation with the overall U.S. equity markets (as measured by the S&P 500). Gold not only diversifies your portfolio but, when included with your portfolio of U.S. equities, may help dampen the volatility of your overall portfolio. Hedge -- Gold has traditionally acted as a hedge against financial assets. So, in uncertain times and in periods of high inflation, gold may act as an effective store of wealth. Demand -- Demand for gold is on the increase, fueled by the jewelry industry as well as by industrial demand.

RELIANCE GOLD FUND ARE

1. RELIANCE GOLD EXCHANGE TRADED FUND 2. RELIANCE GOLD SAVING FUND

RESEARH METHODOLOGY
Research as a care full investigation or enquiry especially through search for new facts in any branch of knowledge Research is an academic activity and such as the term should be used in technical sense. The manipulation of things , concepts or symbols for the purpose of generalizing to extend ,correct or verify knowledge ,whether that knowledge through objective. The Reliance promotes its product through its distribution channels. The different distribution channels are Banking, IFA, National Distributor, Institutional etc. I am promoting the product of Reliance through the Banking division. The research is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. Primary data is collected through interaction with the customers in the bank. One of the most important uses of this research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing alternative solution to the problem .It will also help in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical only data can be used only for the reference. Research will be done by primary data collection, and primary data has been collected by interacting with various people in the bank. The secondary data has been collected through various journals and websites.

TYPES OF RESEARH

ANALYTICAL RESERCH
In this project work, analytical research is used. In this project has to use facts or information .Already used available, and analyze these to make a critical evolution of the material.

METHODS OF DATA COLLECTION

In this project work primary and secondary data sources of data has been used. Primary data: Primary data collect through observation, or through direct communication or doing experiments. Secondary data: Secondary data means already available through books, journals, magazines, newspaper.

SAMPLING The sample was selected of them who are the customers/visitors of Bank Of Baroda. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The Questionnaire design was necessary for proper analysis of the research work done. SAMPLE SIZE The sample size of my project is limited to 100 people only. Out of which only 60 people had invested in Mutual Fund. Other 40 people did not have invested in Mutual Fund.

DATA ANALYSIS AND INTERPRETATION

FINDING AND SUGGESTION

FINDING After completing my project successfully, I am going to conclude whatever I learned during my summer project as well as training also. 1. Now a days people awareness about mutual fund, but somewhere they lack a proper guidance about how they work and how they invested, in what type of fund they should invest. 2. Investors are more interest to invest in equity fund rather than other because equity fund gives good return. 3. Investors scared about the risk factor they need proper guidance about the risk factor how mutual fund dilute the risk by investing in different companies of different sector. 4. A huge potential market is hidden in rural areas ,people are interested to invest in other sources beside the bank and post office saving scheme but they are not getting the proper guidance. 5. Since Rate of Interest on Bank deposit is falling people will be attracted towards investments in Mutual Funds because of high rate of return. 6. There is a great potential for investment in Mutual Fund as people wants to save for various future obligation. 7. People of young age group are ready to take risk and they can be targeted for investment in mutual fund.

SUGESSTION
1 2 3 4 5 Advertisement on television is the main source of attraction so the company must advertise its products heavily. There should be provision of complain suggestion boxes at each branch. Reliance Money has to add some extra features in it with aggressive marketing promotional strategy. People of young age group are ready to take risk and they can be targeted for investment in mutual fund. More awareness among the people must be created about the mutual funds. There should be better communication channels through which they can get to know about different schemes and funds. For increasing the clients provide them best service you can give and provide them all kind of facilities which can attract them and they invest more. The people do not want to take risk. The AMC should launch more diversified funds so that the risk minimizes. This will lure more and more people to invest in mutual funds.

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CONCLUSION
4. A mutual fund is a financial institution that receives money from different investors. 5. Mutual funds are managed by professional fund managers, who manages the funds of individuals and institution, which may not have such high degree of expertise or knowledge 6. Mutual Fund investment is better than other raising fund. 7. Reliance Mutual Fund has good returns in investment. 8. A good brand is always welcomed over here people are more aware and conscious for the brand so they go for they are ready to spend some extra bucks for the quality. 9. At last all cons are concluded by that Reliance Money is still growing industry in India and is still exploring its potential and prospects in here. 10. Mutual fund is a good investment option to the investors.