A Project Report on Mutual Fund

Mutual Fund

Origin

The origin of the Indian mutual funds industry dates back to 1963

when the Unit Trust of India (UTI) came into existence at the

initiative of the Government of India and the Reserve Bank of

India. Since then the mutual funds sector remained the sole

fiefdom of UTI till 1987 when a slew of non-UTI, public sector

mutual funds were set up by nationalized banks and life insurance

companies.

The year 1993 saw sweeping changes being introduced in the

mutual fund industry with private sector fund houses making their

debut and the laying down of comprehensive mutual fund

regulations. Over the years, the Indian mutual funds industry has

witnessed an exponential growth riding piggyback on a booming

economy and the arrival of a horde of international fund houses.

Concept

“Mutual fund is vehicle that enables a number of investors to

pool their money and have it jointly managed by a professional

money manager.”

A Mutual Fund is a pool of money, collected from investors, and is

invested according to certain investment objectives.

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 then invested in capital market

instruments such as shares, debentures and other securities.

The income earned through these investments and the capital

appreciation realised are shared by its unit holders in proportion to

the number of units owned by them.

Mutual Fund companies are known as asset management

companies. They offer a variety of diversified schemes. Mutual

Fund acts as investment companies. They pool the savings of

investors and invest them in a well-diversified portfolio of sound

investments.

Mutual funds can be broken down into two basic categories: equity

and bond funds.

Equity funds invest primarily in common stocks, while bond funds

invest mainly in various debt instruments.

Within each of these sectors, investors have a myriad of choices to

consider, including: international or domestic, active or indexed,

and value or growth, just to name a few.

We will cover these topics shortly. First, however, we're going to

focus our attention on the “nuts and bolts” of how mutual funds

operate.

Mutual Fund Operation Flow Chart

Organisation

Or

ganisation of a Mutual Fund

Mutual funds

Mutual fund is vehicle that enables a number of investors to pool

their money and have it jointly managed by a professional money

manager

Sponsor

Sponsor is the person who acting alone or in combination with

another body corporate establishes a mutual fund. The Sponsor is

not responsible or liable for any loss or shortfall resulting from the

operation of the Schemes beyond the initial contribution made by it

towards setting up of the Mutual Fund.

Trustee

Trustee is usually a company (corporate body) or a Board of

Trustees (body of individuals). The main responsibility of the

Trustee is to safeguard the interest of the unit holders and ensure

that the AMC functions in the interest of investors and in

accordance with the Securities and Exchange Board of India

(Mutual Funds) Regulations, 1996.

Asset Management Company (AMC)

The AMC is appointed by the Trustee as the Investment Manager

of the Mutual Fund. At least 50% of the directors of the AMC are

independent directors who are not associated with the Sponsor in

any manner. The AMC must have a net worth of at least 10 crores

at all times.

Transfer Agent

The AMC if so authorised by the Trust Deed appoints the Registrar

and Transfer Agent to the Mutual Fund. The Registrar processes

the application form, redemption requests and dispatches account

statements to the unit holders. The Registrar and Transfer agent

also handles communications with investors and updates investor

records.

History of the Indian Mutual Fund

The mutual fund industry in India started in 1963 with the

formation of Unit Trust of India, at the initiative of the

Government of India and Reserve Bank the. The history of mutual

funds in India can be broadly divided into four distinct phases:

First Phase – 1964-87: Unit Trust of India (UTI) was

established on 1963 by an Act of Parliament. It was set up by

the Reserve Bank of India and functioned under the Regulatory

and administrative control of the Reserve Bank of India. In 1978

UTI was de-linked from the RBI and the Industrial

Development Bank of India (IDBI) took over the regulatory and

administrative control in place of RBI. At the end of 1988 UTI

had Rs.6, 700 crores of assets under management.

Second Phase – 1987-1993 (Public Sector Funds): SBI

Mutual Fund was the first non- UTI Mutual Fund established in

June 1987 followed by Punjab National Bank Mutual Fund

(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India

(Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC

established its mutual fund in June 1989 while GIC had set up

its mutual fund in December 1990. At the end of 1993, the

mutual fund industry had assets under management of Rs 47000

crores.

Third Phase – 1993-2003 (Private Sector Funds): With

the entry of private sector funds in 1993, a new era started in the

Indian mutual fund industry, giving the Indian investors a wider

choice of fund families. Also, 1993 was the year in which the

first Mutual Fund Regulations came into being, under which all

mutual funds, except UTI were to be registered and governed.

The 1993 SEBI (Mutual Fund) Regulations were substituted

by a more comprehensive and revised Mutual Fund

Regulations in 1996. The industry now functions under the

SEBI (Mutual Fund) Regulations 1996. The number of mutual

fund houses went on increasing, with many foreign mutual

funds setting up funds in India and also the industry has

witnessed several mergers and acquisitions. As at the end of

January 2003, there were 33 mutual funds total assets of Rs. 1,

21,805 crores.

Fourth Phase – since February 2003: In February 2003,

following the repeal of the Unit Trust of India Act 1963 UTI

was bifurcated into two separate entities.

One is the Specified Undertaking of the Unit Trust of India with

assets under management of Rs.29, 835 crores as at the end of

January 2003.

The second is the UTI Mutual Fund Ltd, sponsored by SBI,

PNB, BOB and LIC. With the bifurcation of the UTI which had

in March 2000 more than Rs.76, 000 crores of assets under

management and with the setting up of a UTI Mutual Fund,

conforming to the SEBI Mutual Fund Regulations, and with

recent mergers taking place among different private sector

funds, the mutual fund industry has entered its current phase of

consolidation and growth. As at the end of September, 2004,

there were 29 funds, which manage assets of Rs.153108 crores

under 421 schemes.

The graph indicates the growth of assets over the years.

Growth in Assets under Management

Characteristics of a Mutual Fund

The following are the characteristics of the mutual funds:-

A mutual fund belongs to the investors who have pooled their

funds. The ownership of the mutual fund is in the hands of

the investors.

Investment professionals and other service providers, who

earn a fee for their services, from the fund, manage the

mutual fund.

The pool of funds is invested in a portfolio of marketable

investments. The value of the portfolio is updated every day.

The investors share in the fund is denominated by “units”.

The value of the units changes with change in the portfolio’s

value, every day. The value of one unit of investment is

called as the Net Asset Value or NAV.

The investment portfolio of the mutual fund is created

according to the stated investment objectives of the fund.

Case StudyOn

Introduction

Reliance Mutual Fund (RMF) is one of India’s leading

Mutual Funds, with Assets under Management of Rs.

36,927 crores as on 31st December 2006 and an investor

base of over 2.8 million.

Reliance Mutual Fund, a part of the Reliance - Anil

Dhirubhai Ambani Group, is one of the fastest growing

mutual funds in the country. It offers investors a well-

rounded portfolio of products to meet varying investor

requirements and has presence in 95 cities across the

country.Reliance Mutual Fund constantly endeavors to

launch innovative products and customer service initiatives

to increase value to investors.

Reliance Mutual Fund schemes are managed by Reliance

Capital Asset Management Ltd., a wholly owned subsidiary

of Reliance Capital Ltd. Reliance Capital Ltd. 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 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 (RMF) has been

established as a trust under the Indian Trusts Act, 1882

with Reliance Capital Limited (RCL), as the

Settler/Sponsor and Reliance Capital Trustee Co. Limited

(RCTCL), as the Trustee.

It has been registered with the Securities & Exchange

Board of India (SEBI) on dated June 30, 1995. The name of

Reliance Capital Mutual Fund has been changed to

Reliance Mutual Fund effective 11th. March 2004.

REGISTERED OFFICE Reliance Capital Asset Management LimitedEO1, Reliance Greens, Village Motikhavdi, P.O. Digvijaygram, District Jamnagar - 361 140.Gujarat. Tel No.: 0288 3011556. Fax No.: 02880 3011598.

Reliance Capital Asset Management Limited

Trade World, 'B' Wing,

7th Floor, Kamal Mill Compound,

Lower Parel, Mumbai 400013

Reliance Capital Asset Management Limited

Mittal Chambers, Gr. Flr,

Near Bajaj Bhawan,

Nariman Point,

Mumbai 400021.

Tel No.: 022 56386700 / 22854880.

Fax No.: 022 22853702.

Advantages of a Mutual Fund to Investors:-

CORPORATE OFFICE Reliance Capital Asset Management Limited Express Building,4th & 6th Floor, 14-'E' - Road,Above Satkar Hotel,Opp. Churchgate Station,Churchgate, Mumbai 400 020.Tel No.: +91 22 3041 4800.Fax No.:+91 22 3041 4818 / 3041 4899.

Every investment has advantages and disadvantages. But

it's important to remember that features that matter to one

investor may not be important to you. Whether any

particular feature is an advantage for you will depend on

your unique circumstances. For some investors, mutual

funds provide an attractive investment choice because they

generally offer the following benefits:

Professional Management: The primary advantage of funds

(at least theoretically) is the professional management of

your money. Investors purchase funds because they do not

have the time or the expertise to manage their own portfolio.

A mutual fund is a relatively inexpensive way for a small

investor to get a full-time manager to make and monitor

investments.

Portfolio Diversification: A proven principle of sound

investment is that of diversification, which is the idea of not

putting all eggs in one basket. By investing in many

companies, the mutual funds protect themselves from drop in

value of shares. Majority of people consider diversification as

the major strength of mutual funds.

Reduction of Risk: Risk in investment is as to recovery of

the principal amount and as to return on it. Mutual funds, on

both fronts provide a comfortable situation for investors. The

expert supervision, diversification, and liquidity of units

ensured in mutual funds minimize the risks.

Economies of Scale: Mutual funds having large funds at

their disposal avail economies of scale. The brokerage fee or

trading commission may be reduced substantially. The

reduced transaction costs obviously increases the income

available for investors.

Liquidity: A distinct advantage of mutual fund over other

investments is that, there is always a market for its

units/shares. Moreover, Securities & Exchange Board of

India requires that mutual funds in India have to ensure

liquidity.

Safety of Investment: Besides depending on the expert

supervision of fund managers, the legislation in a country

(SEBI) also provide for safety of investments. Mutual funds

have to broadly follow the laid down provisions for their

regulation. SEBI acts as a watch dog and attempts whole

heartedly to safeguard investor’s interests.

Choice: Mutual funds come in a wide variety of types. Some

mutual funds invest exclusively in a particular sector (e.g.

energy funds), while others might target growth opportunities

in general. There are thousands of funds, and each has its

own objectives and focus. The key is for you to find the

mutual funds that most closely match your own particular

investment objectives.

Convenience: When you own a mutual fund, you

don't need to worry about tracking the dozens of

different securities in which the fund invests; rather,

all you need to do is to keep track of the fund's

performance. It's also quite easy to make monthly

contributions to mutual funds and to buy and sell

shares in them.

Simplicity: Buying a mutual fund is easy! Pretty well

any bank has its own line of mutual funds, and the

minimum investment is small. Most companies also

have automatic purchase plans whereby as little as

$100 can be invested on a monthly basis.

Tax Shelter: Depending on the schemes of mutual

funds, tax shelter is also available under section 80C.

The returns from the mutual funds are also eligible for

favorable tax treatment.

Disadvantages of Mutual Fund:-

There are more benefits to mutual fund investing, but you

should also be aware of the drawbacks associated with mutual

funds. They are as follows:

Professional Management: Did you notice how we

qualified the advantage of professional management with

the word "theoretically"? Many investors debate over

whether or not the so-called professionals are any better

than you or I at picking stocks. Management is by no

means infallible, and, even if the fund loses money, the

manager still takes his/her cut.

No control over costs: Since investors do not directly

monitor the fund’s operations they cannot control the cost

effectively. Regulators therefore usually limit the

expenses of mutual funds. Investors must pay sales

charges, annual fees, and other expenses regardless of

how the fund performs. And, depending on the timing of

their investment, investors may also have to pay taxes on

any capital gains distribution they receive — even if the

fund went on to perform poorly after they bought shares.

Dilution: Although diversification reduces the amount of

risk involved in investing in mutual funds, it can also be a

disadvantage due to dilution. For example, if a single

security held by a mutual fund doubles in value, the

mutual fund itself would not double in value because that

security is only one small part of the fund's holdings. By

holding a large number of different investments, mutual

funds tend to do neither exceptionally well nor

exceptionally poorly.

Taxes: When making decisions about your money, fund

managers don't consider your personal tax situation. For

example, when a fund manager sells a security, a capital-

gain tax is triggered, which affects how profitable the

individual is from the sale. It might have been more

advantageous for the individual to defer the capital gains

liability.

No Insurance: Mutual funds, although regulated by the

government, are not insured against losses. That means

that despite the risk-reducing diversification benefits

provided by mutual funds, losses can occur, and it is

possible that you could even lose your entire investment.

Trading Limitations: Although mutual funds are highly

liquid in general, most mutual funds cannot be bought or

sold in the middle of the trading day. You can only buy

and sell them at the end of the day, after they've

calculated the current value of their holdings.

Poor Performance: Returns on a mutual fund are by no

means guaranteed. In fact, on average, around 75% of all

mutual funds fail to beat the major market indexes, and a

growing number of critics now question whether or not

professional money managers have better stock-picking

capabilities than the average investor.

Fees and Expenses: Most mutual funds charge

management and operating fees that pay for the fund's

management expenses (usually around 1.0% to 1.5% per

year). In addition, some mutual funds charge high sales

commissions, fees, and redemption fees. And some funds

buy and trade shares so often that the transaction costs

add up significantly. Some of these expenses are charged

on an ongoing basis, unlike stock investments, for which

a commission is paid only when you buy and sell.

Types of Mutual Funds:-

Mutual funds come in many varieties. For example, there

are index funds, stock funds, bond funds, money market

funds, and more. Each of these may have a different

investment objective and strategy and a different

investment portfolio. Different mutual funds may also be

subject to different risks, volatility, and fees and expenses.

Wide variety of Mutual Fund Schemes exists to cater to the

needs such as financial position, risk tolerance and return

expectations etc. The table below gives an overview into

the existing types of schemes in the Industry:

By Structure

Open-Ended Funds

All mutual funds fall into one of two broad categories:

open-end funds and closed-end funds. Most mutual funds

are open-end. The reason why these funds are called "open-

end" is because there is no limit to the number of new

shares that they can issue. New and existing shareholders

may add as much money to the fund as they want and the

fund will simply issue new shares to them. Open-end funds

also redeem, or buy back, shares from shareholders. In

order to determine the value of a share in an open-end fund

at any time, a number called the Net Asset Value

(described below) is used. You purchase shares in open-end

mutual funds from the mutual fund itself or one of its

agents; they are not traded on exchanges.

Closed-End Funds

Closed-end funds behave more like stock than open-end

funds; that is to say, closed-end funds issue a fixed number

of shares to the public in an initial public offering, after

which time shares in the fund are bought and sold on a

stock exchange. Unlike open-end funds, closed-end funds

are not obligated to issue new shares or redeem outstanding

shares. The price of a share in a closed-end fund is

determined entirely by market demand, so shares can either

trade below their net asset value ("at a discount") or above

it ("at a premium"). Since you must take into consideration

not only the fund's net asset value but also the discount or

premium at which the fund is trading, closed-end funds are

considered to be more suitable for experienced investors.

You can purchase shares in a closed-end fund through a

broker, or agents, or also just as you would purchase a

shares.

By Investments

The aim of growth funds is to

provide capital appreciation over the

medium to long term. Such schemes

normally invest a majority of their corpus in equities. Growth

schemes are ideal for investors who have a long-term outlook

and are seeking growth over a period of time. The primary

investment objective of the Scheme is to achieve long-term

growth of capital by investment in equity and equity related

securities through a research based investment approach.

The aim of Income Funds is to provide regular and steady

income to investors. Such schemes generally invest in fixed

income securities such as bonds, corporate debentures and

Government securities.Income Funds are ideal for capital

stability and regular income.

Capital appreciation in such funds

may be limited, though risks are

typically lower than that in a growth fund.

Reliance Money Market Funds

The aim of Money Market Funds is to provide easy liquidity,

preservation of capital and moderate income. These schemes

generally invest in safer short-term instruments such as

Treasury Bills, Certificates of Deposit, Commercial Paper and

Inter-Bank Call Money. Returns on these schemes may

fluctuate depending upon the interest rates prevailing in the

market.These are ideal for corporate and individual investors

as a means to park their surplus funds for short periods.

Reliance Balanced Funds

The aim of Balanced Funds is to provide both growth and

regular income. Such schemes periodically distribute a part of

their earning and invest both in equities and fixed income

securities in the proportion indicated in their offer documents.

This proportion affects the risks and the returns associated with

the balanced fund - in case equities are allocated a higher

proportion, investors would be exposed to risks similar to that

of the equity market. Balanced funds with equal allocation to

equities and fixed income securities are ideal for investors

looking for a combination of income and moderate growth.

Other Schemes

These schemes offer

tax rebates to the

investors under specific

provisions of the Indian Income Tax laws, as the

Government offers tax incentives for investment

in specified avenues.Investments made in Equity

Linked Savings Schemes (ELSS) and Pension

Schemes are allowed as deduction under Section

80c of the Indian Income Tax Act, 1961.

Index Funds attempt to replicate the performance of a

particular index such as the BSE Sensex or the NSE S&P CNX

50.The objective of Nifty Plan is to replicate the composition

of the Nifty, with a view to

endeavor to generate returns,

which could approximately be

the same as that of Nifty.

Why the Mutual Funds are so popular:

Mutual funds provide an easy way for small investors to

make long-term, diversified, professionally managed

investments at a reasonable cost.If an investor only has a

small amount of money with which to invest, then he/she

will most likely not be able to afford a professional money

manager, a diversified basket of stocks, or have access to

low trading fees. With a mutual fund, however, a large

group of investors can pool their resources together and

make these benefits available to the entire group. Mutual

funds are also popular because they provide an excellent

way for anyone to direct a portion of their income towards

a particular investment objective.Whether you're looking

for a broad-based fund or a narrow industry-focused niche

fund, you're almost certain to find a fund that meets your

needs. Although the various style and category types are

virtually endless, here's a quick summary of some of the

various choices available to equity investors:

How Mutual Fund reduces risk of investors:

Mutual Funds invest in a portfolio of securities. This means

that all funds are not invested in the same investment

avenue. It is well known that risk and returns of various

options do not move uniformly. E.g. If a Reliance

Company share is moving upwards, a Kotak Mahindra

company’s shares could be moving downwards; if the debt

markets may be moving up, the equity market is moving

down. Therefore, holding a portfolio that is diversified

across investment avenues is a wise way to manage risk.

When such a portfolio is liquid and marked to market, it

enables investors to continuously evaluate the portfolio and

manage their risks more efficiently.

Types of returns from a Mutual Fund

Mutual Funds give returns in two ways - Capital

Appreciation or Dividend Distribution

.Capital Appreciation: An increase in the value of the units

of the fund is known as capital appreciation. As the value

of individual securities in the fund increases, the fund's unit

price increases. An investor can book a profit by selling the

units at prices higher than the price at which he bought the

units.

Dividend Distribution: The profit earned by the fund is

distributed among unit holders in the form of dividends.

Dividend distribution again is of two types. It can either be

re-invested in the fund or can be on paid to the investor.

How Funds Can Earn Money for You:

You can earn money from your investment in three ways:

Dividend Payments — a fund may earn income in the

form of dividends and interest on the securities in its

portfolio. The fund then pays its shareholders nearly

all of the income it has earned in the form of

dividends.

Capital Gains Distributions — the price of the

securities a fund owns may increase. When a fund

sells a security that has increased in price, the fund has

a capital gain. At the end of the year, most funds

distribute these capital gains (minus any capital losses)

to investors.

Increased NAV — if the market value of a fund's

portfolio increases after deduction of expenses and

liabilities, then the value (NAV) of the fund and its

shares increases. The higher NAV reflects the higher

value of your investment.

Choosing a Mutual Fund

Each individual has different financial goals, based on

lifestyle, financial independence and family commitments

and level of incomes and expenses and many other factors.

Thus before investing your money you need to analyze the

following factors:

Investment objective

Your financial goals will vary, based on your age,

lifestyle, financial independence, family commitments

and level of income and expenses among many other

factors. Therefore, the first step should be to assess your

needs. You can begin by defining the investment

objectives, which could be regular income, buying a

home or finance a wedding or educate your children or a

combination of all these needs. Also your risk appetite

and cash flow requirements need to be taken into account.

Choose the right Mutual Fund

Once the investment objective is clear in your mind the

next step is choosing the right Mutual Fund scheme.

Before choosing a mutual fund the following factors need

to be considered:

NAV performance in the past track record of

performance in terms of returns over the last few years

in relation to appropriate yardsticks and other funds in

the same category.

Risk in terms of volatility of returns

Services offered by the mutual fund and how investor

friendly it is.

Transparency, which is reflected in the quality and

frequency of its communications.

Tips to consider when choosing mutual funds:

You don't need to own a lot of different mutual funds.

A handful should be enough to achieve diversification,

because each of them in turn invests in dozens of

stocks, bonds, etc.

Investing in just one Mutual Fund scheme may not

meet all your investment needs. You may consider

investing in a combination of schemes to achieve your

specific goals.

Keep in mind that just because a fund had excellent

performance last year does not necessarily mean that it

will duplicate that performance. For example, market

conditions can change and this year’s winning fund

might be next year’s loser.

The above advice should get you started on the right

path. You will probably discover other things to

consider as you investigate further.

Current scenario of Indian Mutual Funds

Mutual funds in

India have been

attracting investment

from retail investors

for a few years now.

Gone are the UTI

mutual fund days of guaranteed returns and controlled

economy. Today's funds are completely linked to the market

and they are open ended and fully redeemable. Unfortunately,

the investment community in India still looks at them like they

way a day trader looks at stocks. They get in and get out

quickly hoping to make a quick killing. The only people who

get rich in that process are the fund managers. You can see in

the figure also that that the side of the fund managers is more

heavier then the side of the share holders.We believe that the

mutual fund industry has only grown in terms of size or

choices available, but is still a long distance from being

regarded as a mature one. Because no doubt, now there are

benefits to the share holders in mutual funds but not as much

as we all are thinking Indian mutual funds are giving.

Future of Mutual Funds in India

Mutual funds are the one of the fastest growing segment of

the financial services sector in India. Analysts believe that

the mutual funds and banks would be able to corner

sizeable funds from savings bank accounts in metros such

as Delhi, Mumbai, Kolkata, Chennai and Bangalore. But

semi-urban and rural centers would continue to be out of

reach for the new schemes--at least for some more time.

Surely, investors are not going to say no to the banker or

financial advisor who will make that extra buck for you.

By December 2004, Indian mutual fund industry reached

Rs 1, 50,537 crores. It is estimated that by 2010 March-end,

the total assets of all scheduled commercial banks should

be Rs.40, 90,000 crores.The annual composite rate of

growth is expected 13.5% during the rest of the decade. In

the last 5 years we have seen annual growth rate of 8.5%.

According to the current growth rate, by year 2010, mutual

fund assets will be double the current markets.

You can see in the figure also that the side of the share

holders is a bit heavier then the side of the. fund managers.

Thats what the future of indian mutual funds is going to be.

Its really going to be brighter as the way the progress is

been made, and the pains taken for the improvement are

really going to be paid up by well developed indian mutual

fund.

The numbers of investors are also going to grow with the

massive speed, which no one would have thought. There

are going to be very high expectations with the working

and the functioning of the mutual funds.

Conclusion

We would like to conclude by discussing the immense learning

experience in the company while preparing the project.

While compiling this project, it was a great challenge since it gave

us a chance to interact with highly qualified people having

professional approach towards their work. This helped us to

develop a professional approach towards work, which gave us the

right mantra for meeting deadlines.

To state on the concluding front for the Mutual Funds, it can be

said that Mutual funds are a method for investors to diversify risk

and to benefit from professional money management. Mutual

funds are easy to buy and sell. You can either buy them directly

from the fund company or through a third party

Since the mutual fund has come of age the world over with more

and more area and products under risk, i.e. more the risk more is

the benefit & less the risk, less is the benefit.

Now, as the competition has started, there will be more healthy

competition in mutual fund market; where by the market will get

broader and deeper as time passes away. The company will

compete for brand value in the market. This all will result in

improvement of services and with rising advertising, demand is

bond to increase.

.

Thus a Mutual Fund is the most suitable investment for the

common man as it offers an opportunity to invest in a diversified,

professionally managed basket of securities at a relatively low cost

and in well balanced risks..

Lastly, we would like to say that this project gave us lot of helpful

basic knowledge about Mutual Funds in detailed manner and also

all the workings, operations related to it.

Thank you

Major Mutual Fund Companies in India

.ABN AMRO Mutual Fund:- April 15, 2004

Birla Sun Life Mutual Fund:-

Bank of Baroda Mutual Fund:- October 30, 1992

HDFC Mutual Fund:- June 30, 2000

HSBC Mutual Fund:- May 27, 2002

ING Vysya Mutual Fund:- February 11, 1999

Prudential ICICI Mutual Fund:- October 13, 1993

State Bank of India Mutual Fund:-

Tata Mutual Fund:-

Kotak Mahindra Mutual Fund:- December 1998

Unit Trust of India Mutual Fund:- Jan 14, 2003

Reliance Mutual Fund: - March 11, 2004.

Standard Chartered Mutual Fund:- March 13, 2000

Franklin Templeton India Mutual Fund:-

Morgan Stanley Mutual Fund:-

Alliance Capital Mutual Fund:- December 30, 1994