Summary[/b]
The project deals with understanding of mutual fund and analysis. During my project, I got the opportunity to understand the concept, various AMC (Asset management company) issuing various Mutual Fund according to the needs of the investors. During my project, I came to know important regulations of SEBI for mutual fund operations.
Project deals with an analysis of RELIANCE Mutual Funds various schemes in which I tried to came out with a result which is best, for that purpose I conducted a market research. During the project I suggested the investors how to invest and in which fund they should invest.
During the project, I made an endeavor to understand the awareness of mutual funds among the various classes of investors. The data collected mainly through fact sheets of funds, broachers, and questionnaire and also from various sites of Reliance mutual funds etc. the data analyzed and recommendation is given on the basis of the conclusions.
Aims/ Objectives:[/b]
· To understand the basics of Mutual Funds and also what is their current popularity in terms of how do investors rate them against other investment instruments.
· To analyze the importance of mutual funds in today scenario
· To know how many types of mutual funds exist in the market
· To find the how a fund is being designed
· To understand the risk involved in funds
· To understand what competitive measures are being taken by a company for their product
· To recommend the strategies for the growth of funds
· To understand the competitive environment in which the company is operating and is designed to meet customers need and satisfaction.
· To analyze & help an investor in making a right choice of investments, while considering the inherent risk factors.
Analysis and Findings:[/b]
· Now a days people are getting awareness about mutual fund, but some where they lack a proper guidance about how they works, and how to invest, in what type of fund they should invest.
· Investors are more interested in equity fund rather than others because equity funds give good returns.
· 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 sectors.
· A huge potential market is hidden in rural area, people are interested to investing in other sources besides bank and post office saving schemes, but they are not getting proper guidance.
· According to present scenario due to some factors like increasing inflation and increasing interest rate investors are avoiding mutual fund because banks are also giving the interest at near about 10% so people don’t want to take risk by investing in mutual funds.
The performance of mutual funds is not up to the investor’s expectation due to sub prime crisis, so it is tuff time to attract investors.
Conclusion:[/b]
Out of the list of Debt Fund stated in the above: -
Reliance Short Term fund, is a Short Term Fund.
All of these schemes have been performing consistently from past five years and have witnessed rough phases of the market.
Also, all of them command reasonably good risk-ratios,
Reliance Short Term is Short Term Fund and is more aggressive than other Short Term Fund.
Therefore, investors can pick any of these the schemes according to their risk profile
Recommendations:[/b]
It was a gratifying experience to be in corporate and work as a trainee with the brand name of Reliance Mutual Fund. During my Project I came to know much more about the mutual funds, how they work, what are the norms of SEBI to to regulate the AMCs. I have learnt so many things also which I can not explain in my report. I got the opportunity during my project to comparatively analyze two funds and give the recommendations also.
What ever I learnt during the completion of my project on behalf of that I am recommending to the Reliance Mutual Funds
· Asset management companies need to proper educate the investor to increase the awareness and break the myths about mutual fund.
· Mutual und distributors like Reliance Mutual Fund should start a campaign to educate the investors: there is a need of advertisement also to attract the investor.
· AMCs should target rural market as a potential hub of customer. In rural area people are getting wealth gradually and need a guidance to shift their portfolio from old sources to new and modern sources.
· Sales force should be well educated about every aspect of mutual fund so that they can solve the queries of the investors.