29-05-2012, 01:42 PM
ANALYSIS OF MUTUAL FUND SCHEMES OF RELIANCE MONEY
INTRODUCTION TO MUTUAL FUNDS:
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.
Development of the Global Mutual Funds Industry
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.
COMPANY PROFILE:
Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani Group, and is ranked among the 25 most valuable private companies in India.
Reliance Capital 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 groups, in terms of net worth.
Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, consumer finance and other activities in financial services.
The Reliance Anil Dhirubhai Ambani Group is one of India's top 2 business houses, and has a market capitalization of over Rs.2,90,000 crore (US$ 75 billion), net worth in excess of Rs.55,000 crore (US$ 14 billion), cash flows of Rs. 11,000 crore (US$ 2.8 billion) and net profit of Rs. 7,700 crore (US$ 1.9 billion).
Reliance Capital Ltd. is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. RCL was incorporated as a public limited company in 1986 and is now listed on the Bombay Stock Exchange and the National Stock Exchange (India). With a net worth of over Rs 3,300 crore and over 165,000 shareholders, Reliance Capital has established its presence as a leading player in the financial services sector in the country. On conversion of outstanding equity instruments, the net worth of the company will increase to about Rs 4,100 crore.
CONCLUSION:
From the analysis it is found that most of the customers go with bank deposits because of current needs. They should divert their investors mind from bank saving deposit and make them aware of the high returns gained by investing in mutual fund.
Guidance is an important criterion for the investors to make them aware about mutual fund schemes and their returns. Hence asset management companies should start promotional campaigns for exploring the knowledge and information about the mutual fund.
Hence by analyzing the schemes of Reliance mutual fund it can be stated that most of the investors invest in ELLS. The representatives of Reliance Money are able to satisfy all the queries offered by the clients. In turn, helping them to serve in a better way.