ENHANCEMENT OF MUTUAL FUND INVESTORS THROUGH PUBLIC SECTOR BANK NETWORK IN LUCKNOW (ACQUISITION & NEW MARKET DEVELOPMENT)”

AT

RELIANCE MUTUAL FUND

COMPANY PROFILE• One of India’s leading Mutual Funds, with Average Assets Under Management (AAUM) of

Rs. 80,694 Crores and an investor count of over 63.17 and 69.37 Lakh folios. (AAUM and investor count as of Apr - June '12)

• 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 179 cities across the country.

• It constantly endeavors to launch innovative products and customer service initiatives to increase value to investors.

• Reliance Capital Asset Management Limited (‘RCAM’) is the asset manager of Reliance Mutual Fund. RCAM a subsidiary of Reliance Capital Limited, which holds 92.93% 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,

•

ABOUT THE PROJECT• The project was “ENHANCEMENT OF MUTUAL FUND INVESTORS THROUGH PUBLIC

SECTORBANK NETWORK IN LUCKNOW (ACQUISITION & NEW MARKET DEVELOPMENT)”

• The mission of the project is to tap the untapped market of HNI’S where there is large investment opportunity available.

• Another mission of the project was to analyze the working of the alternate channel • (P.S.B s) and finally creating and enhancing an effective and efficient sales lead that can

help RMF to attain its goal.

• Final objective of all these activities is to generate more revenue for the Asset Management Company from a new channel and to analyze the current PSB channel.

RELEVANCE OF THE PROJECT• The main motive of the project is to

• Make the people more and more aware about Reliance Mutual Fund schemes and their benefits.

• To make the public aware about the Systematic Investment Plan and its benefits in future course of action.

• Finally to make them invest in SIP format in Reliance Gold Savings Plan.

• To change the perception of general public towards the Mutual Fund Industry.

Why Systematic Investing?• The Goal of most investors is to buy when the prices are

low, and sell when the prices are high.• Sounds simple, but trying to time the market like this is :

1. Time Consuming

2. Risky

3. And almost Impossible to predict…….

• A more successful strategy is to adopt Rupee Cost Averaging.

How to make Sip work for you ?

• Set your financial goals

• Identify the scheme

• Decide the SIP amount

• Look for a long term commitment

• Aim for the big picture

• Start investing.

Month Unit Price Amount Invested Units Bought Amount Invested Units Bought1 20 60000 3000 10000 5002 18 -- -- 10000 5563 14 -- -- 10000 7144 22 -- -- 10000 4555 26 -- -- 10000 3856 20 -- -- 10000 500

Average price paidTotal units bought

THE POWER OF RUPEE COST AVERAGING

Lum-Sum Investor Regular Investor

Total Amount Invested Rs 60000 Rs 60000

Value of investment after six months

Rs 60000 Rs 62018

20 193000 3109

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY• Research type : Descriptive

• Analysis tools : Statistical

• Collection of data :

• Secondary data: Through journals, e-source and articles etc.• Primary data: Through questionnaires.

• Sampling method : convenience and judgment sampling.

• Sample size : 50

Assumptions andLimitations of the study

Assumptions  

• It has been assumed that sample respondents represents the whole population.

•  The information given by the customer is unbiased.

Limitations

• 1. Duration of Project was not enough to make a conclusion on such a vast subject time constraint has become a big limitation.

• 2. The Sample Size being taken for drawing a conclusion was too small to get an accurate result.

• 3. There can be an error in the research due to the biased response of the respondents.

• 4:-People are not willing to tell out their personal information.

FINDINGS AND ANALYSIS• It has been found out that the awareness level regarding

mutual funds is too low.

• Public who are aware of mutual funds are not aware of Systematic Investment Plan which is a recent concept.

• There has been wrong perception in the mind of investors that mutual funds are complex ones and are directly related to share markets.

• If investors are given some awareness by conducting some awareness programs, many of them who do not invest presently would possibly like to invest in future.

Contd…..

• Most of the businessmen invest their money in business itself rather then investing in mutual funds.

• People consider Fixed and Bank deposits as a better and safer avenue for their investments.

• Young people these days are particularly more interested in mutual funds because they see mutual fund as safe bet. Also these people have large disposable incomes and risk taking capability too.

• Most of the businessman that were interviewed want to expand their business in recent years.

Recommendations• The most vital problem spotted is of ignorance. Investors should be made aware of the

benefits. Nobody will invest until and unless he is fully aware and convinced.

• There is a wrong perception among the investors regarding mutual funds , this should be rectified as soon as possible:-Most of the persons have wrong perception that the mutual funds are directly related to share market so this perception of the public have to be rectified.

• Banking channel should be focused more and more as it have a huge potential for Mutual Fund Industry:-The banking channel should be dealt more aggressively which can be a great source of income for Reliance Mutual Fund.

• There is lot of complaint regarding the service of Reliance Mutual Fund industry so it should be dealt more seriously to make the investors happy:-Most of the public that were interviewed were very dissatisfied regarding the customer support service of Reliance..

• Proper Training and up to date knowledge of Gold Savings Fund should be given to every employee of Reliance Mutual Fund so that then can explain its benefits and structure to the clients.

LEARNINGS• 1:-From this project under Reliance Mutual Fund made me aware about

the whole functioning of Mutual Funds , and how it can benefit us in our near future.

• 2:-It also gave me a chance to meet the HNI’S who can act as a heart and soul for this industry.

• 3:-It made me understand the various expectation that a person have while investing in Mutual Funds.

• 4:- It also made me aware of the risk and return associated with the Mutual Fund Schemes.

• 5:- It made me learn how negative market sentiments affect the investment option of the general public.

Contd……• 6:- It made me learn the awareness level of the general public and the

perception that they hold towards Mutual Fund Industry.

• 7:- It also made me learn how we can pitch the right product to the right person after knowing the risk taking ability of the person.

• 8:-It also made me aware of the various competitors of Reliance Mutual Fund and what steps have been taken by Reliance to make the investors happy and satisfied.

• 9:-Learned how to process the new applications and got to know the various formalities required to invest in Reliance Mutual Fund..

• 10:-During the course of the project I learned how to interact with new people so that they can be convinced to be a part of Mutual Fund Industry.