57581541 Irfan Mutual Funds Project

8/10/2019 57581541 Irfan Mutual Funds Project

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INTRODUCTION TO MUTUAL FUNDS

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 realized is shared by its unit

holders in proportion to the number of units owned by them. 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. The

flow chart below describes broadly the working of mutual funds.

Mutual fund is a mechanism for pooling the resources by issuing units to the

investors and investing funds in securities in accordance with objectives as disclosed in

offer document.

nvestments in securities are spread across a wide cross!section of industries

and sectors and thus the risk is reduced. "iversification reduces the risk because all

stocks may not move in the same direction in the same proportion at the same time.Mutual fund issues units to the investors in accordance with #uantum of money

invested by them. nvestors of mutual funds are known as unit holders.

The investors in proportion to their investments share the profits or losses. The

mutual funds normally come out with a number of schemes with different investment

objectives that are launched from time to time.

"ifferent investment avenues are available to investors. Mutual funds also offer

good investment opportunities to the investors. $ike all investments, they also carry

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certain risks. The investors should compare the risks and e+pected yields after

adjustment of ta+ on various instruments while taking investment decisions

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OBJECTIVES OF THE STUDY

To make a more informed investment decision while selecting a specific

scheme.

To give a brief idea about the -istory of Mutual Fund in ndia.

To make a detailed study about the funds available in Mutual Fund

ndustry.

To discuss about the Market Trends of the Mutual Fund investment.

To discuss comparative study of -"F' /T schemes of

Mutual Fund.

To study the recent trends and future scenario of Mutual Fund performance in

the market.

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NEED FOR THE STUDY

A mutual fund is a special type of financial service organization. t

acts as an investment intermediary. t channels savings of a large no of people to the

corporate securities in such a way that investors get steady return, capital appreciationand a low risk. The need for the study is investors who got the specific return with a

low risk and also suggest which funds to choose invest his capital.

The study provides me an opportunity to helpful to my theoretical

knowledge and also practical e+perience for the investing the capital in to the mutual

funds with a low risk and get steady return. And also know the various practical aspects

in marketing and finance area

-ence the study of performance of mutual fund is helpful to

understanding the customer preference to words mutual funds. n ndia, first mutual

fund was started in )123 when /nit Trust of ndia was established. /nit Trust of ndia

brought out a number of schemes beneficial to investors. t is the biggest mutual fund

in ndia. The government of ndia amended *anking 4egulation Act in )156 to enable

commercial banks to establish mutual funds in ndia. A number of mutual funds to mop

up savings of every section of society. The %tate *ank of ndia has launched a mutual

fund called 7%* Mutual Fund8 in )156. ndian *ank established a mutual fund called

7ndian *ank Mutual Fund8 in )119. the government of ndia allowed the private

sector corporate or companies to join the mutual fund in industry in )11.-"F' AM'

for the mutual fund by %(* on &uly 0 rd999.

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SCOPE OF THE STUDY

The scope of the calculations is growth funds are to know whether the schemes

are performing really well, than can be known by looking annulized returns earned by

the %tudy that is taken into consideration, in this respect five growth fund schemes

taken viz., -"F' :rowth Fund, 4eliance :rowth Fund and Franklin :rowth Fund.

The study covers the randomly selected three companies; growth funds for the period

of 3 years i.e.


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METHODOLOGY OF THE STUDY

Data collection meto!"

The collection of data refers to a planned gathering of information relevant to

the subject matter of the study from the units under investigation. The method of

collection of data depends mainly upon the nature, objectives and scope of the in#uiry

on one hand and available of resources and time on the other hand. "ata may be

classified into primary and secondary data, depending upon the nature and mode of

collection.

P#ima#$ !ata?!

@rimary data is collected directly from the prospective customers, agents, and

staff of -"F' *AB employees. @rimary data is collected through interaction with

various respondents.

Secon!a#$ !ata?!

%econdary data collected from the published magazines and websites to collect

the data. the secondary data is collected form the following sources.

*usiness magazines

&ournals

@ublished *ooks

Cebsites

'ompany broachers and books

Re%ea#c In%t#&ment"'

Duestionnaire has been used in this research to collect the necessary

information. Duestionnaire is the most common instrument, in collecting the primary

data. The #uestionnaire consists of a set of #uestions presented to the respondents for

their valuable answers.

The #uestionnaire consist of #uestions, were used to obtain necessaryinformation from customers. n designing the #uestionnaire for the data collection,

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effort was made to avoid unnecessary #uestions and to include all the necessary

#uestions.

Most of the #uestions in the #uestionnaire are closed!end #uestions i.e., they

pre! specify all possible answers and respondents make a choice among them. There

are only few #uestions which are opened #uestions, i.e. That allows the respondents to

answers in their own words. 'are has been taken to make the wording of #uestion as

simple, direct and unbiased as possible, so that, the customer can feel easy.

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LIMITATIONS OF THE STUDY

This study is under taken as a part of M.*.A course curriculum during the

summer vocation. %hort span of time 5 weeks is a limitation of the study.

The comparative study of performance is taken for selecting three schemes in

-"F' and three schemes in /T.

This study covers mostly on customers and not covers the agents and corporate

agents of mutual fund. *ecause of time constraint.

The limitation of the study is entire schemes are not taken into consideration

only limited are taken each type of the mutual funds for the study.

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INDUSTRY PROFILE

The mutual fund industry in ndia started in )120 with the formation of /nit Trust of

ndia, at the initiative of the :overnment of ndia and 4eserve *ank the. The history of

mutual funds in ndia can be broadly divided into four distinct phases.

Fi#%t Pa%e ( )*+,'-.

/nit Trust of ndia


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COMPANY PROFILE

HDFC Ban7 Limite!

The -ousing "evelopment Finance 'orporation $imited 9 crore billion=. The

paid!up capital is 4s.091.1 crore


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the bank;s e#uity and about )1.>G of the e#uity is held by the A"% "epository


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Mr. &agadish kapoor took over as the bankKs 'hairman in &uly 99). @rior to

this,

Mr. kapoor was a "eputy :overnor of the 4eserve *ank of ndia.

The Managing "irector, Mr. Aditya @uri, has been a professional banker for

over > years and before joining -"F' *ank in )113 was heading 'itibankKs

operations in Malaysia.

The *ankKs *oard of "irectors is composed of eminent individuals with a wealth of

e+perience in public policy, administration, industry and commercial banking. %enior

e+ecutives representing -"F' are also on the *oard.

%enior banking professionals with substantial e+perience in ndia and abroad head

various businesses and functions and report to the Managing "irector. :iven the

professional e+pertise of the management team and the overall focus on recruiting andretaining the best talent in the industry, the bank believes that its people are a

significant competitive strength.

Tecnolo9$

-"F' *ank operates in a highly automated environment in terms of

information technology and communication systems. All the bank;s branches have

online connectivity, which enables the bank to offer speedy funds transfer facilities to

its customers. Multi!branch access is also provided to retail customers through the

branch network and Automated Teller Machines


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B&%ine%% P#o1ile

-"F' *ank caters to a wide range of banking services covering commercial

and investment banking on the wholesale side and transactional I branch banking on

the retail side. The bank has three key business segments?

a= ;ole%ale Ban7in9 Se#6ice%

The *ank;s target market is primarily large, blue chip manufacturing

companies in the ndian corporate sector and to a lesser e+tent, small mid!sized

corporate and agri!based businesses. For these customers, the *ank provides a wide

range of commercial and transactional banking services, including working capital

finance, trade services, transactional services, cash management, etc. The bank is alsoa leading provider of structured solutions, which combine cash management services

with vendor and distributor finance for facilitating superior supply chain management

for its corporate customers. *ased on its superior product delivery I service levels and

strong customer orientation, the *ank has made significant inroads into the banking

consortia of a number of leading ndian corporate including multinationals,

companies from the domestic business houses and prime public sector companies. t

is recognized as a leading provider of cash management and transactional banking

solutions to corporate customers, mutual funds, stock e+change members and banks.

b= Retail Ban7in9 Se#6ice%

The objective of the 4etail *ank is to provide its target market customers a

full range of financial products and banking services, giving the customer a one!stop

window for all hisIher banking re#uirements. The products are backed by world!class

service and delivered to the customers through the growing branch network, as well as

through alternative delivery channels like ATMs, @hone *anking, et *anking and

Mobile *anking.

The -"F' *ank @referred program for high net worth individuals, the -"F'

*ank @lus and the nvestment Advisory %ervices programs have been designed

keeping in mind needs of customers who seek distinct financial solutions, information

and advice on various investment avenues. The *ank also has a wide array of retail

loan products including Auto $oans, $oans against marketable securities, @ersonal

$oans and $oans for Two!wheelers.

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-"F' *ank was the first bank in ndia to launch an nternational "ebit 'ard in

association with J%A


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Tier *onds while Fitch 4atings ndia @vt. $td. has assigned the rating 7AAA% 7Be%t Dome%tic

Comme#cial Ban7 A:a#! 455?8 for ndia.

The *ank was awarded The Asian *anker;s, 7E@cellence in Retail Ban7in9

Ri%7 Mana9ement A:a#! 1o# 455,, and pan!Asia recognition of the bank;srisk management abilities.

The Asset


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The *ank was rated as the 7Be%t O6e#all Local


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THEORETICAL FRAME ;OR

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 realized is shared by its

unit holders in proportion to the number of units owned by them. 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. The

flow chart below describes broadly the working of a Mutual Fund?

nvestIpool profitIloss from

Their Money

portfolio invest

nvest in a no. of @rofitI$oss from

%tocksI*onds ndividual investment

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In6e%to#

M&t&al F&n! Com8an$

Pool o1 Mone

Ma#7et 0Fl&ct&ate%3


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ORGANISATION OF A MUTUAL FUND

There are man entities involved and the diagram below illustrates the organizational set

up of a mutual fund?

-"F' Mutual Fund @roducts

Sceme%"

E&it$ F&n!%

-"F' :rowth Fund

-"F' $ong Term Advantage Fund

HDFC In!e@ F&n!

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-"F' (#uity Fund

-"F' 'apital *uilder Fund

-"F' Ta+ %aver

-"F' Top 99 Fund

-"F' 'ore %atellite Fund

-"F' @remier Multi!'ap Fund

Balance! F&n!%

-"F' 'hildrenKs :ift Fund nvestment @lan

-"F' 'hildrenKs :ift Fund %avings @lan

-"F' *alanced Fund

-"F' @rudence Fund

De2t F&n!%

-"F' ncome Fund

-"F' $i#uid Fund

-"F' :ilt Fund %hort Term @lan

-"F' :ilt Fund $ong Term @lan

-"F' %hort Term @lan

-"F' Floating 4ate ncome Fund %hort Term @lan

-"F' Floating 4ate ncome Fund $ong Term @lan

-"F' $i#uid Fund ! @4(M/M @$A

-"F' $i#uid Fund ! @4(M/M @$/% @$A

-"F' %hort Term @lan ! @4(M/M @$A

-"F' %hort Term @lan ! @4(M/M @$/% @$A

-"F' ncome Fund @remium @lan

-"F' ncome Fund @remium plus @lan

-"F' -igh nterest Fund

-"F' -igh nterest Fund ! %hort Term @lan

-"F' %overeign :ilt Fund ! %avings @lan

-"F' %overeign :ilt Fund ! nvestment @lan

-"F' %overeign :ilt Fund ! @rovident @lan

-"F' 'ash Management Fund ! %avings @lan

-"F' 'ash Management Fund ! 'all @lan

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-"F'MF Monthly ncome @lan ! %hort Term @lan

-"F'MF Monthly ncome @lan ! $ong Term @lan

-"F' 'ash Management Fund ! %avings @lus @lan

-"F' Multiple Hield Fund

-"F' Multiple Hield Fund @lan 99>

Val&e A!!e! Se#6ice%

%@ , 99,999 borrowers, )0, 99,999

depositors, ), 99,999 shareholders and >,999 deposit agents. -"F' raises funds from

international agencies such as the Corld *ank, F'


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Stan!a#! Li1e In6e%tment% Limite!

The %tandard $ife Assurance 'ompany was established in )5> and has

considerable e+perience in global financial markets. n )115, %tandard $ife

nvestments $imited became the dedicated investment management company of the

%tandard $ife :roup and is owned )99G by The %tandard $ife Assurance 'ompany.

Cith global assets under management of appro+imately /%R)2 billion as at May )>,

990, %tandard $ife nvestments $imited is one of the worldKs major investment

companies and is responsible for investing money on

*ehalf of five million retail and institutional clients worldwide. Cith its head#uarters in

(dinburgh, %tandard $ife nvestments $imited has an e+tensive and developing global

presence with operations in the /nited Bingdom, reland, 'anada, /%A and -ongBong. n order to meet the different needs and risk profiles of its clients, %tandard $ife

nvestments $imited manages a diverse portfolio covering all of the major markets

world!wide, which includes a range of private and public e#uities, government and

company bonds, property investments and various derivative instruments. The

companyKs current holdings in /B e#uities account for appro+imately G of the market

capitalization of the $ondon %tock (+change. The %tandard $ife Assurance 'ompany

was present in the ndian life insurance market from )536 to )105 when agencies were

set up in Bolkata and Mumbai. The %tandard $ife Assurance 'ompany was therefore

keen to re!enter the ndian market and in )11>, signed an agreement with -"F' to

launch an insurance joint venture. -"F' and %tandard $ife nvestments $imited are

neither responsible nor liable for any loss resulting from the operation of the %cheme


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Fund by %(* on &uly 0, 999. The registered office of the AM' is situated at 4amon

-ouse,

0rd Floor, -.T. @arekh Marg, )21, *ack bay 4eclamation, 'hurch gate, Mumbai

399 99. n terms of the nvestment Management Agreement, the Trustee has

appointed -"F' Asset Management 'ompany $imited to manage the Mutual Fund.

The paid up capital of the AM' is 4s. 6>.)2) crore.

The present share holding pattern of the AM' is as follows?

@articularsG of the paid up share

capital

-"F' >9.)9

%tandard $ife nvestments

$imited31.19

Surich nsurance 'ompany


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Te %t#&cte con%i%t% o1 S8on%o#

%ponsor is the person who acting alone or in combination with another body

corporate establishes a mutual fund. %ponsor must contribute at least 39G of the net

worth of the nvestment Managed and meet the eligibility criteria prescribed under the

%ecurities and (+change *oard of ndia


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4egistrar and Transfer agent also handles communications with investors and updates

investor records.

In6e%tment O2ecti6e:

%chemes can be classified by way of their stated investment objective such as

:rowth Fund, *alanced Fund, and ncome Fund etc

TYPES OF MUTUAL FUND SCHEMES

Cide variety of Mutual Fund %chemes e+ists to cater to the needs such as financial

position, risk tolerance and return e+pectation etc. Functional classification of mutual

funds is based on the basic characteristics of mutual fund schemes opened for the

public for subscription. En this account mutual funds are classified into two broadtypes?

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An open!ended fund


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OTHER SCHEMES

TA %AJ: %'-(M(%

%@('A$ %'-(M(%

"( %'-(M(%

%('TE4 %@('F' %'-(M(%

INTERVAL SCHEMES"

These schemes are a combination of the features of open!ended and closed!

ended scheme. Chich will be traded on the %tock (+change at a time or will be open

for sale or redemption during the predetermined intervals at AJ related prices.

E&it$ O#iente! Sceme%

These schemes, also commonly called :rowth %chemes, seek to invest a

majority of their funds in e#uities and a small portion in money market instruments.

%uch schemes have the potential to deliver superior returns over the long term.

-owever, because they invest in e#uities, these schemes are e+posed to fluctuations in

value especially in the short term.

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(#uity schemes are hence not suitable for investors seeking regular

income or needing to use their investments in the short!term. They are ideal for

investors who have a long!term investment horizon. The AJ prices of e#uity fund

fluctuates with market value of the underlying stock which are influenced by e+ternal

factors such as social, political as well as economic. -"F' :rowth Fund, -"F' Ta+

@lan 999 and -"F' nde+ Fund are e+amples of e#uity schemes.

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Gene#al Po%e

The investment objectives of general!purpose e#uity schemes do not restrict

them to invest in specific industries or sectors. They thus have a diversified portfolio of

companies across a large spectrum of industries. Chile they are e+posed to e#uity price

risks, diversified general!purpose e#uity funds seek to reduce the sector or stock

specific risks through diversification. They mainly have market risk e+posure. -"F'

:rowth Fund is a general!purpose e#uity scheme.

Secto# S8eci1ic

These schemes restrict their investing to one or more pre!defined sectors, e.g.

technology sector. %ince they depend upon the performance of select sectors only, these

schemes are inherently more risky than general!purpose schemes. They are suited for

informed investors who wish to take a view and risk on the concerned sector.

S8ecial Sceme%"

In!e@ %ceme%

The primary purpose of an nde+ is to serve as a measure of the performance of

the market as a whole, or a specific sector of the market. An nde+ also serves as a

relevant benchmark to evaluate the performance of mutual funds. %ome investors are

interested in investing in the market in general rather than investing in any specific

fund. %uch investors are happy to receive the returns posted by the markets. As it is not

practical to invest in each and every stock in the market in proportion to its size, these

investors are comfortable investing in a fund that they believe is a good representative

of the entire market. nde+ Funds are launched and managed for such investors. An

e+ample to such a fund is the -"F' nde+ Fund.

Ta@ %a6in9 %ceme%

nvestors


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transferredI pledged I redeemed I switched P out until completion of 0 years from the

date of allotment of the respective /nits.

The %cheme is subject to %ecurities (+change *oard of ndia


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Income %ceme%"'

These schemes invest in money markets, bonds and debentures of corporate

with medium and long!term maturities. These schemes primarily target current income

instead of capital appreciation. They therefore distribute a substantial part of their

distributable surplus to the investor by way of dividend distribution. %uch schemes

usually declare #uarterly dividends and are suitable for conservative investors who

have medium to long!term investment horizon and are looking for regular income

through dividend or steady capital appreciation. -"F' ncome Fund, -"F' %hort

Term @lan and -"F' Fi+ed nvestment @lans are e+amples of bond schemes.

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Li&i! Income Sceme%:-

%imilar to the ncome scheme but with a shorter maturity than ncome schemes.

An e+ample of this scheme is the -"F' $i#uid Fund.

Money Market %chemes?!

These schemes invest in short term instruments such as commercial paper


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obliged to keep sellingIissuing new units at all times, and may stop issuing further

subscription to new investors. En the other hand, an open!ended fund rarely denies to

its investor the facility to redeem e+isting units.

Clo%e! en!e! Sceme%

The unit capital of a close!ended product is fi+ed as it makes a one!time sale of

fi+ed number of units. These schemes are launched with an initial public offer


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independent rating agencies like '4%$ who rate companies and their paper. An

AAA; rating is considered the safest whereas a "; rating is considered poor credit

#uality. A well!diversified portfolio might help mitigate the risk Things you hear

people talk about? 74s )99 Today is a worth more than 4s )99 tomorrow.8 74emember

the time when a bus ridecosted>9paiseO8 The root cause, nflation. nflation is the loss

of purchasing power over time. A lot of times people make conservative investment

decisions to protect their capital but end up with a sum of money that can buy less than

what the principal could at the time of the investment. This happens when inflation

grows faster than the return on your investment. A well!diversified portfolio with some

investment in e#uities might help

Mitigate this risk. nterest 4ate 4isk n free market economy interest rates is difficult if

not impossible to predict. 'hanges in interest rates affect the prices of bonds as well as

e#uities. f interest rates rise the prices of bonds fall and vice versa. (#uity might be

negatively affected as well in a rising interest rate environment. A well!diversified

portfolio might help mitigate this risk. @oliticalI:overnment @olicy 4isk 'hanges in

government policy and political decision can change the investment environment. They

can create a favorable environment for investment or vice versa. $i#uidity 4isk

$i#uidity risk arises when it becomes difficult to sell the securities that one has

purchased. $i#uidity 4isk can be partly mitigated by diversification, staggering of

maturities as well as internal risk controls that lean towards purchase of li#uid

securities. Hou have been reading about diversification above, but what is itO

"iversification the nuclear weapon in your arsenal for your fight against 4isk. t simply

means that you must spread your investment across different securities


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money market instruments, real estate, fi+ed deposits etc.= and different sectors ! M*A "ept


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distribution and marketing e+penses. These charges have no effect on the performance

of the scheme. %ales loads are usually e+pression percentage and or of two types front!

end and back!end.

F#ont'En! Loa!? !

t is a one time fi+ed fee paid by an investor when buying a mutual funds

scheme. t determines public offer price which in term decides how much of your initial

investment actually get invested the standard practice of arriving a public offer price is

as follows.

Net A%%et Val&e

P&2lic o11e# 8#ice KKKKKKKKKK

0) 1#ont'en! loa!3

$et us assume, an investor invests 4%.)9999 in a scheme that charges a G

front!end load at a AJ per unit 4s. )9 using the formula public offer price V )9I


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Net A%%et Val&e

Re!em8tion 8#ice KKKKKKKKK

0) 2ac7 en! loa!3

$et us assume an investor redeems units valued at rs )9999 in a scheme that charges a

G back end load at a AJ per units of 4s. )9. /sing the formula redemption price )9I


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Fo# te 8o%e o1 Anal$%i% I a6e ta7en 2elo: mentione! name% o1

te 1&n!%

-"F' (D/TH F/"

-"F' 'EM( F/"

-"F' $D/" F/"

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DATA ANALYSIS AND INTERPRETATION

Anal$%i% o1 te F&n!%"

-"F' (D/TH F/"

-"F' 'EM( F/"

-"F' $D/" F/"

TABLE:-5.1

HDFC EQUITY FUND

FUND CLASS Ince8tion !ate INVESTMENT A9e o1 F&n!

OBJECTIVE

EUITY "ecember 5, )113 To achieve capitalAppreciation )0 Months

Minim&m In6e%tment 4s. >,999

F&n! Man9e# @rashant &ain

Val&e in 0R%3

A% on

Late%t NAV 22.50 I .2> June 09,99>

F&n! A%%et Si=e )96,3>5.52 &une 09, 99>

La%t Di6i!en! 4s. 0.99 per unit ovember09,993

Bon&% .A .A

O8tion

:rowthIdividendLoa! MAH 0)!99>

(ntry $oad .>G ,X>crore(+it $oad il

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Comment% o lock in period

Feate% .A

TABLE"'?4ASSET BREA DO;N OF HDFC EUITY FUND

TABLE"'?/ABSOLUTE AND ANNULISED RETURNS OF HDFC EUITY FUND

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A%%et B#ea7!o:n JUNE/5 455?

Class %

(#uity 15.00

Ethers I /nlisted 9.99

"ebt .A

Money Market .A

A2%ol&te Retn% JUNE/5 455?

Period %

Ene year 1.>3W

Three years .0)9WW


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TABLE"'?,

TOP HOLDING OF HDFC EUITY FUND

TABLE"'??

SECTORAL ;EIGHTAGES OF HDFC EUITY FUND

TABLE"'?+NAV AND GRO;TH OF HDFC EUITY FUND

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To8 Hol!in9% JUNE/5 455?

Stocks %

%tate *ank of ndia )9.9>

4eliance ndustries $td. 6.06

%atyam 'omputer %ervices $td. 2.36

Sectoral Weightages (Top Ten Holdings) JUNE30, 2005(%)

ndustrial 'apital :oods )6.50%oftware )3.56*anks )0.)3@etroleum products 1.26

Auto Ancillaries 2.33'ement 2.0@esticides 3.66Auto 3.)2Eil 3.)

N! ("s#) JUNE30, 2005

Di6i!en! G#o:t

NAV 0R%3 44+? ++-/

?4 ;ee7% i9 0R%3 4/,, +-+*

> weeks $ow .0)


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TABLE"'?.

RETURNS OF HDFC EUITY FUND

INTERPRETATION"

This is an open!ended growth %cheme. This fund is fully invested in e#uity e#uity

related instruments.

The table >. shows the Asset break down of -"F' (#uity Fund more G in thee#uity .

The table >.0 shows the annualized returns of last five years average is 3.51G

The table >.3 shows the major Top -oldings of -"F' (#uity Fund

The table >.> shows the fund portfolio sectors like ndustrial 'apital :oods, %oftware,

and *anks etc.,

The table >.2 shows AJ had increased from 4s. >0.1 to 22.50.%hows the securitised

portfolio that has maintained.

This table >.6 shows fund had generated a return of 1.>3G. The benchmark return


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HDFC INCOME FUND

F&n! Cla%% Ince8tion

Date

In6e%tment

O2ecti6e

A9e o1 F&n! F&n!

Mana9e#

ncome Fund %ep )),999

Eptimize

returnsbalance ofsafety yieldli#uidity

>0 Months %habbir Bapasi

JA$/( .59 &une09,99>

Fund Asset%ize

>2,>).56 &une09,99>

$ast "ividend )G per unit May 3,99>

*onus .A .A

Eption :rowth I"ividend

$oad =

(ntry

9G

(+it

9.>9G

Features .A

TABLE"'?*ASSET BREADO;N OF HDFC INCOME FUND

%&'(T ! 30 ! M*A "ept


44/67

TABLE"'?)5

A*%E$/T( 4(T/4% EF -"F' 'EM( F/"

TABLE"'?))TOP HOLDING OF HDFC INCOME FUND

TABLE" ?)4

SECTORAL ;EIGHTAGES OF HDFC INCOME FUND

%&'(T ! 33 ! M*A "ept

Asset Breakdown JUNE30, 2005

Class %

(#uity .A

Ethers I /nlisted .A

"ebt 52.03

Money Market 9.1

Top Holdings JUNE30, 2005

Stocks %

6.05G :E 9)> 5.05

%tate *ank of ndia )9.3

*harat @etroleum 'orporation $td. 1.3

Absolute Returns JUNE30, 2005

period %

Ene year 9.9)W

Three years 6.00WW

Sectoral Weightages (Top Ten Holdings) JUNE30, 2005 (%)

:overnment %ecurities )).)2

"ebenchers 6>.)5

Money Market nstruments 9.1


45/67

TABLE"'?)/NAV AND GRO;TH OF HDFC INCOME FUND

TABLE"'?),

4(T/4% EF -"F' 'EM( F/"

INTERPRETATION"

%&'(T ! 3> ! M*A "ept

N! ("s#) JUNE30, 2005

Di6i!en! G#o:t

NAV 0R%3 )54/ )?-5

?4 ;ee7% i9 0R%3 )5.. )?-?

From Date NAV (Rs) To Date NAV (Rs)

Di6i!en! G#o:t Di6i!en! G#o:t

A8#il ) 455, )55. )?.- JUNE/5 455? )54/ )?-5

$solte "etrns$ 0#0&


46/67

This is an open!ended income scheme.

The table >.1 shows the Asset break down of -"F' 'EM( Fund more G in the

"ebt.

The table >.)9 shows the annualized returns of last five years average is )9.31G

The table >.)) shows the major Top -oldings of -"F' 'EM( Fund

The table >.) shows the fund portfolio sectors like government bonds, debentures,

money market instruments. (tc.,

The table >.)0shows AJ has)>.59G.%hows the securitized portfolio that has

maintained.

This fund completely concentrated on the debt market. This fund has investments in

non!convertible debentures, convertible debentures money market.

The returns compared with the market benchmark are also ver low bench mark returns

are 9.2G where as the fund results are 9.9)G only.

TABLE"'?)?

%&'(T ! 32 ! M*A "ept


47/67

HDFC LIQUID FUND


Date

In6e%tment

O2ecti6e

A9e o1 F&n! F&n!

Mana9e#

$i#uid Fund-$F%ep )),999

Eptimizereturns

balance ofsafety yieldli#uidity

>0 Months %hobhitMehrotra

JA$/( 591 &/(09,99>

Fund Asset%ize

99,309.> &une09,99>

$ast "ividend )9.960 @er/nit

MAH3,99>

*onus .A .A

Eption :rowth I"ividend

$oad =

(ntry

9G

(+it

9.>9G

Features .A

TABLE"'?)+ASSET BREADO;N OF HDFC LIUID FUND

%&'(T ! 36 ! M*A "ept


48/67

TABLE"'?).

A*%E$/T( 4(T/4% EF -"F' $D/" F/"

TABLE"'?)-TOP HOLDINGS OF HDFC LIUID FUND

TABLE"'?)*SECTORAL ;EIGHTAGES OFHDFC LIUID FUND

%&'(T ! 35 ! M*A "ept


Class %

(#uity .A


"ebt 0>.9

Money Market 0>.>)

'ash I 'all 9.60

Top Holdings JUNE30, 2005

Stocks %

-ousing and /rban "ev 'orp $td. .63

ndian retail A*% Trust P '' *ank $td. 3.5)

&ammu Bashmir *ank $td. 3.95

4everse 4epo;s )5.)0


Period %

Ene year 3.)0W

Three years >.)3WW

Sectoral Weightages (Top Ten Holdings) JUNE30, 2005 (%)

"ebentures 0>.9

Money Market nstruments >>.01

"epositsI et 4eceivables 1.>1


49/67

TABLE"'?45NAV AND GRO;TH OFHDFC LIUID FUND

TABLE"'?4)RETURNS OF HDFC LIUID FUND

%&'(T ! 31 ! M*A "ept

N! ("s#) JUNE30, 2005

Di6i!en! G#o:t

NAV 0R%3 )5)4 )?-5

?4 ;ee7% i9 0R%3 )5)4 )?-*

> weeks $ow .2


Di6i!en! G#o:t Di6i!en! G#o:t

A8#il ) 455, )55. )?.- Ma$ 455? )5)4 )?-5

$solte "etrns$'#&3


50/67

INTERPRETATION"

This is an open!ended li#uid scheme.

The table >.)2 shows asset break down in most debt and money market

The table >.)6 shows the absolute returns and annualised of last three years is>.)3G

The table >.)5 shows the major Top holding companies of the stocks.

The table >.)1 shows the debentures I bonds, Money market, deposits. This is ahighly li#uidate able fund investor can e+it at any time. This fund maintains ahighly volatile portfolio.

Most of the funds are kept in the Money Market instruments.

The table >.9 have AJ of growthIdividend shows the last performance

The table >.) shows fund has generated a return of 3.)0G where as the benchmark

inde+ has give 0.59G. This is highly securitized portfolio

%&'(T ! >9 ! M*A "ept


51/67

INTRODUCTION TO UTI MUTUAL FUND"'

/nit Trust of ndia ) ! M*A "ept


52/67

(#uity Fund April 9,)11

$ong!termappreciationwith incomedistribution.

)35 Months Mr.JinayBulkarni

JA$/(

Fund Asset%ize

)022.22 crore &/(09,99>

$ast "ividend 4s per unit 2!may!99>

*onus .A .A

Eption ''''''''

$oad =

(ntry load

9G

(+it load

0G

Features .A

TABLE"'?4/ASSET BREADO;N OF UTI EUITY FUND

TABLE"'?4,ABSOLUTE RETUNS OFUTI EUITY FUND

%&'(T ! > ! M*A "ept

Asset *reakdown May 0), 99>

'lass G

(#uity )99.99


"ebt .A

Money Market .A

'ash I 'all .A

et 4eceivable I @ayable .A

Absolute 4eturns May 0), 99>

Period %

Ene year 5.15

Three years 01.19

Five years )9.>9

%ince nception )).>2


53/67

TABLE"'?4?TOP HOLDINGS OFUTI EUITY FUND

TABLE"'?4+SECTORAL ;EIGHTAGES OFUTI EUITY FUND

TABLE"'?4.

NAV AND GRO;TH OF UTI EUITY FUND

%&'(T ! >0 ! M*A "ept

Top -oldings May 0), 99>

Stocks %

Tata motors . 2.9>

ndustrial "evelopment *ank of ndia 0.13

%atyam 'omputers $td. 0.20

Sectoral Weightages (Top Ten Holdings) JUNE30, 2005(%)

@harmaceuticals )5.6

Finance )9.5)

Technology 5.15

Automobile 2.29

@etroleum 6.61

(ngineering >.>

'onsumer @roduct 3.52

N! ("s#) ne30, 2005

NAV 0R%3 4*-4

?4 ;ee7% i9 0R%3 /5.+

> weeks $ow


54/67

TABLE"'?4-RETURNS OF UTI EUITY FUND

INTERPRITATION"

The table>.0 shows that major asset breakdown in e#uity

The table >.3 shows that absolute returns of last five years )).>2G

The table >.> shows that major top holdings of e#uity fund

The table >.2 shows top ten sectoral weightages

The table >.6 shows the AJ and growth of last > weeks

The table >.5 shows the absolute returns given as on &une 09th

This fund is continued with its diversification focus.

The credit off take has witnessed a strong growth and the fund feels that the banking

companies are attractively valued.

Ta2le" ?4*

%&'(T ! >3 ! M*A "ept


A8#il ) 455, 4,-+ &ne/5 455? 4*-4

$solte "etrns$23#*


55/67

/T 'EM( F/"

F&n! Cla%% Ince8tion Date In6e%tment O2ecti6e A9e o1 F&n! F&n! Mana9e#

ncome fund &an ), 99

:enerate credit risk!free return throughsovereign securities 05 Months Mr.@uneet @al

JA$/(

Fund Asset %ize 6.15 I 6905

$ast "ividend %T@? G, $T@? 6G May , 990

*onus

.A .A

Eption :rowth

$oad =

(ntry

9G

(+it

)G days=

Features .A

Ta2le" ?/5

A%%et 2#ea7 !o:n o1 UTI INCOME F&n!

%&'(T ! >> ! M*A "ept


'lass G

(#uity .A

Ethers I /nlisted .A"ebt 2.)9Money Market 2).2'ash I 'all ).25



56/67

Ta2le" ?/)

A2%ol&te #et&n% an! ann&ali=e! #etn% o1 UTI INCOME F&n!

Ta2le" ?/4

To8 ol!in9% o1UTI INCOME F&n!

Ta2le" ?//Secto#al :ei9ta9e% o1 UTI INCOME F&n!

%&'(T ! >2 ! M*A "ept

Top -oldings &/(09, 99>

Stocks %

"evelopment 'redit *ank $td. )2.32

%undaram Finance $td. ).22

'itifinancial 'onsumer Fin. ndia $td. )).56

Allahabad *ank 5.60

'ash I 'all

et 4eceivable I @ayable

Absolute 4eturns &/(09, 99>

Period %

6 "ays 3.2)

09 "ays 3.>1

19 "ays 3.>1

02> "ays 3.>1

%ince nce tion >.1)

Sectoral Weightages (Top Ten Holdings) ne30, 2005 (%)

LTP"

:sec 33.99

N 3

T bill )6.99STP"

NCA .,55

T bill 2.99


57/67

Ta2le" ?/,

NAVan! 9#o:t o1 UTI INCOME F&n!

Ta2le"'?/?

Retn% o1 UTI INCOME F&n!

INTERPRETATION

This Fund is the low risk, low!volatile fund aims at offering returns to investors looking

to park in short!term surpluses.

%&'(T ! >6 ! M*A "ept

N! ("s#) (+T) ne30, 2005 Di6i!en! G#o:t

NAV 0R%3 )54- )/-5

?4 ;ee7% i9 0R%3 )5// )/-5

> weeks $ow


58/67

The table >.09 shows the asset break downs of debt fund is 2.)9G

The table >.0) shows the absolute and annualized returns of last five years is >.1)G

The table >.0 shows the top holdings of investing funds in it.

The table >.00 shows the sectoral weightages to the industry wide.

The table >.03 shows the AJ and growth rates of last ) year

The )9!year old :E yield opened at 6.)5G and eased down to 2.21G due to

cancellation of scheduled auction and inflation rate

W The AJ in the growth option has an increase in percentage of 4s.3) and givenreturn in the month of march of 3.>1

Ta2le"'?/+

/T $D/" F/"


Date

In6e%tment O2ecti6e A9e o1 F&n! F&n! Mana9e#

$i#uid fund &uly 0,99)

4easonable return objective of low riskhigh li#uidity 33 months Mr.Amandeep

%.chopra

JA$/(

Fund Asset %ize ))> crores &une09!99>

$ast "ividend .A

*onus

.A .A

Eption :rowthIncome

$oad =

(ntry

9G

(+it

9G

%&'(T ! >5 ! M*A "ept


59/67

Ta2le" ?/.

A%%et 2#ea7!o:n o1 UTI LIUID F&n!

Ta2le"'?/-

A2%ol&te an! ann&ali=e! #etn% o1 UTI LIUID F&n!

Ta2le"'?/*

To8 ol!in9% o1 UTI LIUID F&n!

%&'(T ! >1 ! M*A "ept


'lass G

(#uity .A


"ebt 2.)9

Money Market 2).2

'ash I 'all ).25


Top -oldings &/(09, 99>

Stocks %

"evelopment 'redit *ank $td. )2.32%undaram Finance $td. ).22'itifinancial 'onsumer Fin. ndia $td. )).56Allahabad *ank 5.60

'ash I 'all


Period %

6 "ays 3.2)09 "ays 3.>119 "ays 3.>1

02> "ays 3.>1%ince nception >.1)


60/67

Ta2le"'?,5

Secto#al :ei9ta9e% o1 UTI LIUID F&n!

Ta2le"'?,)

NAV an! G#o:t #ate% o1 UTI LIUID F&n!

Ta2le"'?,4

Retn% o1 UTI LIUID F&n!

%&'(T ! 29 ! M*A "ept

Sectoral Weightages (Top Ten Holdings) ne30, 2005 (%)

'ertificate of "eposits 3.5)%T" 2.)9F4* )1.22'ommercial @apers )2.61

N! ("s#) ne30, 2005

Di6i!en! G#o:t

AJ weeks $ow


61/67


62/67

FINDINGS

Mutual Funds simplifie investor;s e+perience and allows him to depend

on the e+pertise and e+perience of professional money managers freeing

up his time to be used for more enjoyable pursuits.

Mutual Funds generally nvest in %tocks, *onds and Money Market

nstruments.

Chen investor invest in a Mutual Fund, he is hiring a team of

professionals with years of e+perience and e+pertise making these

decisions on behalf of investors, which will put him at ease with

investing.

The other major benefit of investing in Mutual Fund is diversification.

Mutual Fund will typically in a basket of )99 or more stocks or bonds in

each fund giving him the peace of mind assuring that all of his eggs are

not in one basket in other words, some of the stronger performing

holdings will help to offsets some of the lesser performing holdings in

the funds.

*y utilizing professional money managers in Mutual Fund, investor can

take a giant step toward potentially reducing investment risk. n addition

he can use a time proven techni#ue called 7Asset Allocation8 which is

the process of spreading his Mutual Fund investment across different

asset classes and management styles.

As far as the two companies are concerned, -"F' and /T the

following the points may be consideredYYYYY

The -"F' Mutual Fund had worked competitively well than the /T

Mutual Funds.

The sectorial allocation of -"F' is good than that of the /T due to the

high level of diversification.

%&'(T ! 2 ! M*A "ept


63/67

Te NAV #etn% com8a#e! in te 1&n!% a#eK

n (D/TH F/" category -"F' has given 1.>3G of return in the

latest year where as /T has given 0.15G of return.

n 'EM( F/" category -"F' has given 9.9)G of return where as

/T has given P9.65G of return.

n *A$A'(" F/" category -"F' has given )1.3G of return in

the latest year where as /T has given )>.56G of return.

n $D/" F/" category -"F' has given 3.)0G where as /T had

given 3.>1G this fund had done better than -"F' li#uid fund.

%&'(T ! 20 ! M*A "ept


64/67

SUGGESTIONS

Four se#uential steps will enable investor to decide effectively.

)."ivide the spectrum of Mutual Fund depending on major asset class invested in,presently there are only two.

(#uity funds investing in %tocks and %hares.

"ebt funds investing in interest paying securities issued :overnment,

%emi!government bodies @ublic %ector /nits and 'orporates.

4Cate9o#i=e e&itie%"

"iversified! invest in large capitalized stocks belonging to multiplesectors.

%ectorial ! invest in specific sectors only, like technology, FM':,

@harmaceutical and @etroleum.

W Cate9o#i=e !e2t?

:ilt! invest only in :overnment securities, $ong maturity securities with

average if 1!)0years, very sensitive to invest rate movement.

Medium term debt !6years.

%hort! term debt!average maturity is ) yearU interest rate sensitivity is very

low, with steady returns.

$i#uid! invest in money market, other short term paper and each, highly

li#uid, average maturity is 0 months.

/REVIE; CATEGORIES"

"iversified e#uity has done well while %ectoral categories have fared poorly in

ndian market.

nde+ funds have delivered much less compared to actively managed funds.

:ilt and income funds have performed very well during in last three years. They

perform best in a failing interest rate environment. %ince interest rates are nowlower, short!term funds are preferable.

%&'(T ! 23 ! M*A "ept


65/67

,SPECIFIC SCHEME SELECTION"

4anking are based on criteria including past performance, risk and

resilience in unfavorable conditions, stability and investment style of fund

management, costs and service levels. %ome recommended schemes are "iversified

e#uity, :ilt funds, and %hort!term funds. Cith in debt class presently more is

allocated towards %hort!term fund because of low prevailing interest rate. -owever,

if interest rates go up investor can allocate more in Mutual Funds.

%&'(T ! 2> ! M*A "ept


66/67

CONCLUSION

Mutual Fund is affordable for most individuals. They are less risky

investments. The market is growing day by day, increasing the number of schemes and

making easy way to invest for the investors. The availability of the technology makes

the investor at ease of knowing every bit of information needed. %o, investment had

become easier with the introduction of technology.

%&'(T ! 22 ! M*A "ept


67/67

BIBILOGRAPHY

Boo7%"

Mutual Funds in ndia; -.%A"AB, edition )111, response

*ooks, ew "elhi.

%ecurity Analysis and @ortfolio Management J.A.AJA"-A,

edition )111,

JOURNALS"

'harted Financial Analysis by .'.F.A.

NE;S PAPERS"

Financial (+press

(conomic Times

*usiness line

Times of ndia

;e2%ite%"

:::9oo9le%ea#ccom

:::!1c1&n!com

:::&tim1com

:::%e2i9o6coin

:::am1iin!iacom
http://www.googlesearch.com/http://www.hdfcfund.com/http://www.utimf.com/http://www.sebi.gov.co.in/http://www.amfiindia.com/http://www.googlesearch.com/http://www.hdfcfund.com/http://www.utimf.com/http://www.sebi.gov.co.in/http://www.amfiindia.com/

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