“A study of Mutual Funds of Reliance Mutual Funds”

Introduction

A Mutual Fund is a body corporate that pools the saving of a member of investors and
invests the same in a variety of different financial instruments or securities.

Investments in securities are spread across a wide cross-section of industries and sectors
depending upon the objective of the schemes. Mutual Funds invest in various asset
classes like equity, bonds, debentures, commercial papers and government securities. The
income earned through these investments and the capital appreciations realized by the
scheme are shared by its unit holders in proportion to the number of units owned by
them.

Mutual Funds can thus be considered as financial intermediaries in the investment

business that collects funds from the public and invest on behalf of the investor. The
losses and gains access to the investors only. The investment objectives outlined by a
Mutual Fund in its prospectus are building on the Mutual funds Scheme. The investment
objectives specify a mutual fund can invest in.

A Mutual fund is the ideal investment while for today's complex and modern financial
scenario. Markets for equity shares, bonds and other fixed income instruments, real
estate, derivatives and other assets have become very mature and information drives Price
changes in these assets are drives by global events occurring in fare way place. A mutual
fund is the answer to all these situations qualified and experienced professionals'
managers' mutual funds on a full time basis. Further mutual funds make investments is a
number of stocks, the resultant diversification reduces risk.

A mutual fund is required to be registered with Stock and Exchange Board of India that
regulates securities markets before it can collect funds from the public.

Stock and Exchange Board of India (SEBI) Regulations require that at least two third of
the directors of trustee company or Board of trustee must be independent i.e. they should
not be associated with the sponsors. Also 50% of the directors of asset Management
Company must be independent. All mutual funds are required to be registered with Stock
and Exchange Board of India before they launch any Scheme. However, Unit Trust of
India is not registered with Stock and Exchange Board of India (as on Jan 15, 02).

Literature Review

Rationale of the study

The rationale of the study is that is as follows:

 1. To study the mutual funds behaviour in market.
2. To know the reasons why people invest in mutual funds.
3. To understand the perception about the people why they choose Reliance Mutual
funds for their investment.

Objective of the study

The objective of the study the Mutual fund of Reliance Mutual Funds

Methodology

The methodology of the study is based on following things:

1. Data Type – Primary & Secondary Data
2. Sample Size – Self prepared questionnaire.
3. Tools for Data Collection – Reliance Mutual Fund, Internet, journals
4. Data Analysis – Most appropriate tool for data analysis

Reference:
1. http://www.reliancemutual.com/
2. http://faculty.chicagobooth.edu/finance/papers/eval3.pdf