Chapter 1: Introduction 1
Sep 09, 2014
Chapter 1: Introduction
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SYSTEMATIC INVESTMENT PLAN (SIP)
The Systematic Investment Plan (SIP) is a simple and time honored investment strategy for
accumulation of wealth in a disciplined manner over long term period. The plan aims at a
better future for its investors as an SIP investor gets good rate of returns compared to a one
time investor. A specific amount should be invested for a continuous period at regular
intervals under this plan.
SIP is similar to a regular saving scheme like a recurring deposit. It is a method of investing a
fixed sum regularly in a mutual fund.
SIP allows the investor to buy units on a given date every month.
While the investor's investment remains the same, more number of units can be bought in a
declining market and less number of units in a rising market. The investor automatically
participates in the market swings once the option for SIP is made.
SIP ensures averaging of dollar cost as consistent investment ensures that average cost per
unit fits in the lower range of average market price. An investor can either give post dated
cheques or credit card instruction and the investment will be made regularly in the mutual
fund desired for the required amount. SIP generally starts at minimum amounts of $300 per
month and upper limit could be as you may choose.
SCOPE OF STUDY
A big boom has been witnessed in Mutual Fund Industry in resent times. A large
number of new players have entered the market and trying to gain market share in this
rapidly improving market.
The research was carried on in Varanasi. I had been sent at one of the branch of HDFC
AMC LTD. Varanasi where I completed my Project work. I surveyed on my Project
Topic “Awareness of systematic plan amongst investors.” on the visiting customers of
the HDCF AMC Varanasi.
Study will help to know awareness of SIP in the customers, which company,
portfolio, mode of investment, option for getting return and so on they prefer.
This project report may help the company to make further planning and strategy.
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Chapter 2: Industry Overview
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History of Mutual Fund Industry
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 of India. The history of mutual
funds in India can be broadly divided into four distinct phases:
First phase – 1964-87(Monopoly of UTI)
An Act of Parliament established Unit Trust of India (UTI) on 1963. 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. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6, 700 crores of assets under management.
Second Phase – 1987-93(Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), and 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.47,004 crores.
Third Phase – 1993-2003(Entry of 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 erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
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
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several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds
with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of
assets under management was way ahead of other mutual funds.
Forth 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,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB,
BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
With the bifurcation of the erstwhile 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 October 31, 2003, there were 31 funds, which
manage assets of Rs.126726 crores under 386 schemes.
Mutual funds have played a significant role in financial intermediation, the development of
capital markets and the growth of the Indian Economy. The Indian mutual fund industry has
been no exception. Though it is relatively new, it has grown at a dynamic speed, influencing
various sectors of the financial market and the national economy.
The Indian economy is under transition on account of the on going structural adjustment
programs and liberalization. The corporate sector and the investment community play a major
role in the markets today. Economic transition is usually marked by changes in the market
mechanics, institutional integration, market regulations, relocation of savings and investments
and changes in inter-scrotal relationships.
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Customers Profile of Mutual Fund Industry
(Type of Customers)
1. While you recommend a financial plan, you also need to understand the needs and
financial objectives of your customer along with his risk tolerance and his
expectations from the investments.
2. Honest and straightforward advice is appreciated. Help your customers make the
right choice.
3. Advise your customers to start investing early and regularly to help them optimize
the benefits of the compounding rupee.
4. Help your investors with the procedures and paper work involved in making an
investment.
Treat every customer exclusively. A satisfied customer can give you increased business
through resale and referrals of other prospective customers.
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Positioning Strategy of Mutual Fund Industry
Positioning starts with a product. But positioning is not what you do to a product. Positioning
is what you do to the mind of the prospect. That is, you position the product in the mind of
prospect. A company’s differentiating and positioning strategy must change as the product,
market, and competitors change over time. . There should be no under positioning, over
positioning, confused positioning or doubtful positioning.
Channels of Distribution
In Every asset Management Company’s distribution channel played very important roles.
Here assets management companies have distributors like :
Consultants
Agents
Distributors
Advisers
Broker
Their role is very important for Assets Management Company’s Office.
Promotional Tools Employed by Mutual Fund Companies
Some specific other documents help to increase selling product like: -
(1) Banners:
Banners define brief idea of scheme, it should be very attractive with specific objective &
its related picture in city, and Banners keep in specific places which very help to do good
publicity. It distributes only by AMC’s office. When any new scheme is launched or any
new NFO coming up that times company make banners before few days. Its helps to good
advertising & easy cover to customer or people.
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(2) Application Form:
Any product like Equity, debt and balance, investor should fill up its common
Application forms. Form define acknowledge slip which give return to customer.
Actually 3-time stamp done in form, one of them is acknowledged slip. These forms are
distributed by Assets Management Company’s office. It is all Assets Management
Company’s office duty to dispatch forms to their customer like agents, brokers, and
advisers time to time.
(3) Broachers:
Broachers include brief history of company. It defines when and where assets
management Company invests investor’s money. This defines performance of each
scheme product & also defines its comparison to last 3 months to more than 5 years. In
end of every month Assets Management Company’s office send Boucher to their
investors, brokers, agents, advisers regularly.
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Chapter 3: Company Overview
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Background and Objective of HDFC Group
Background
HDFC was incorporated in 1977 with the primary objective of meeting a social need – that of
promoting home ownership by providing long-term finance to households for their housing
needs. HDFC was promoted with an initial share capital of Rs. 100 million.
Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the country
through the provision of housing finance in a systematic and professional manner, and to
promote home ownership. Another objective is to increase the flow of resources to the
housing sector by integrating the housing finance sector with the overall domestic financial
markets...
Organizational Goals
HDFC’s main goals are to
a) Develop close relationships with individual households,
b) Maintain its position as the premier housing finance institution in the country,
c) Transform ideas into viable and creative solutions,
d) Provide consistently high returns to shareholders, and
e) To grow through diversification by leveraging off the existing client base.
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Key Companies of HDFC group
HDFC Reality
HDFC Bank
HDFC Standard Life Insurance
HDFC Mutual Fund
HDFC Chubb General Insurance
Credit Information Bureau (INDIA) Limited
HDFC Securities
HDFC Consultancy Services
Intel net Global
HDFC-Asset Management Company
An HDFC asset Management Company limited is well-established fund house. HDFC Assets
Management Company limited is sponsored by Housing Development Finance Corporation
Limited (HDFC) andhttp://www.standardlifeinvestments.com/ Standard life investments
limited.
HDFC assets Management Company limited launched its scheme HDFC EQUITY FUND in
the year January 1995. Since then it focused on different class of schemes for many years and
launched several innovative products that went to become bourgeoning categories in the
Indian mutual fund industry.
Some of these were HDFC GROWTH FUND, HDFC TOP 200 FUND, and HDFC
BALANCED FUND, HDFC PRUDENCE FUND etc. HDFC assets Management Company
limited have offices in 29 cities and currently manage assets in excess of Rs 75,406.10 cores.
(May 2009)
HDFC was incorporated in 1977 as the first specialized Mortgage Company in India. HDFC
is a Premier Housing Finance Company in India. HDFC provides financial assistance to
individuals, corporates and developers for the purchase or construction of residential housing.
It also provides property related services (e.g. property identification, sales services and
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valuation), training and consultancy. Of these activities, housing finance remains the
dominant activity. HDFC has a client base of around 10 lac borrowers, around 10 lac
depositors, over 1,23,000 shareholders and 50,000 deposit agents, as at March 31, 2009. The
Company has a total asset size of Rs. 96,993 crore as at March 31, 2009 and cumulative
approvals and disbursements of housing loans of Rs. 237,450 crore and Rs. 191,806 crore
respectively as at March 31, 2009. HDFC had raised funds from international agencies such
as the World Bank, IFC (Washington), USAID, DEG, ADB and KfW, international
syndicated loans, domestic term loans from banks and insurance companies, bonds and
deposits. HDFC has received the highest rating for its deposits program for the fourteenth
year in succession.
STANDARD LIFE INVESTMENTS LIMITED
Standard Life Investments Limited is the dedicated investment management company of the
Standard Life group and is a wholly owned subsidiary of Standard Life Investments
(Holdings) Limited, which in turn is a wholly owned subsidiary of Standard Life plc. With
global assets under management of approximately US$ 169 billion as at March 31, 2009,
Standard Life Investments Limited is one of the world's major investment companies and is
responsible for investing money on behalf of five million retail and institutional clients
worldwide. Standard Life Investments is a leading asset management company, with
approximately US$ 169 billion of assets under management as at March 31, 2009. The
company operates in the UK, Canada, Hong Kong, China, Korea, Ireland, Paris, Sydney and
the USA to ensure it is able to form a truly global investment view.
Board of Directors
The Board of Directors of the HDFC Asset Management Company Limited (AMC) consists
of the following eminent persons.
Mr. Deepak S Parekh
Mr. Hoshang S. Billimoria
Mr. N. Keith Skeoch
Mr. Humayun Dhanrajgir
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Ms. Renu S. Karnad
Mr. Milind Barve
Mr. Mark Connolly
Mr. Rajeshwar Ram Bajaj
Mr. P. M. Thampi
Dr. Deepak Phatak
Product Details
Equity Schemes of HDFC
1. HDFC Equity Fund:-
Investment Objective: The investment objective of the Scheme is to achieve capital
appreciation.
Investment Options: Dividend & Growth Option
Nature of Scheme: Open-ended Growth Scheme
Inception Date: January 01, 1995
2. HDFC growth fund:-
Investment Objective: The primary investment objective of the Scheme is to generate
long term capital appreciation from a portfolio that is invested predominantly in equity
and equity related instruments.
Investment Options: Dividend & Growth Option
Nature of Scheme: Open-ended Growth Scheme
Inception Date: September 11, 2000
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3. HDFC Top 200 Fund:-
Investment Objective: To generate long-term capital appreciation from a portfolio of
equity and equity-linked instruments primarily drawn from the companies in BSE 200
index.
Investment Options: Dividend & Growth Option
Nature of Scheme: Open-ended Growth Scheme
Inception Date: October 11, 1996
4. HDFC Capital Builder Fund:-
Investment Objective: To generate long-term capital appreciation from a portfolio that is
substantially constituted of equity and equity related securities of Small and Mid-Cap
companies.
Investment Options: Dividend & Growth Option
Nature of Scheme: Open Ended Growth Scheme
Inception Date: February 01, 1994
5. HDFC Core & Satellite Fund:-
Investment Objective: The primary objective of the Scheme is to generate capital
appreciation through equity investment in companies whose shares are quoting at prices
below their true value.
Investment Options: Dividend & Growth Option
Nature of Scheme: Open Ended Growth Scheme
Inception Date: September 17, 2004
6. HDFC Premier Multi-Cap Fund:-
Investment Objective: The primary objective of the Scheme is to generate capital
appreciation in the long term through equity investments by investing in a diversified
portfolio of Mid Cap and Large Cap `blue chip` companies.
Investment Options: Dividend Plan, Growth Plan, The Dividend Plan offers Dividend
Payout and Reinvestment Facility.
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Nature of Scheme: Open Ended Growth Scheme
Inception Date: April 06, 2005
Balanced Schemes of HDFC
1. HDFC Balanced Fund: -
Investment Objective: The primary objective of the Scheme is to generate capital
appreciation along with current income from a combined portfolio of equity and equity
related and debt and money market instruments.
Investment Options: Dividend & Growth Option
Nature of Scheme: Open Ended balanced fund
Inception Date: September 11, 2000
2. HDFC Prudence Fund:-
Investment Objective: The investment objective of the Scheme is to provide periodic
returns and capital appreciation over a long period of time, from a judicious mix of equity
and debt investments, with the aim to prevent/ minimize any capital erosion.
Investment Options: Dividend & Growth Option
Nature of Scheme: Open Ended balanced fund
Inception Date: February 01, 1994
3. HDFC Short Term Plan:-
Investment Objective: - The primary objective of the HDFC Short Term Plan is to
generate regular income through investment in Debt Securities and Money Market
Instruments.
Investment Options: Growth Plan, Dividend Plan. The Dividend Plan offers Dividend
Payout and Reinvestment Facility.
Nature of Scheme:- Open Ended income fund
Inception Date: - February 28, 2002
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4. HDFC Multi Yield Fund :-
Investment Objective: The primary objective of the Scheme is to generate positive
returns over medium time frame with low risk of capital loss over medium time frame.
Investment Options: Growth Plan, Dividend Plan. The Dividend Plan offers Dividend
Payout and Reinvestment Facility.
Nature of Scheme: - Open Ended income fund
Inception Date: - September 17, 2004
Debt Schemes of HDFC
1. HDFC Income Fund:-
Investment Objective: - The primary objective of the Scheme is to optimize returns
while maintaining a balance of safety, yield and liquidity.
Investment Options: Dividend & Growth Option
Nature of Scheme: - Open-ended Income Scheme
Inception Date: - September 11, 2000
HDFC Income Fund: -
Investment Objective: - The investment objective of HDFC High Interest Fund is to
generate income by investing in a range of debt and money market instruments of various
maturity dates with a view to maximizing income while maintaining the optimum balance
of yield, safety and liquidity.
Investment Options: Dividend & Growth Option
Nature of Scheme: - Open Ended Income Scheme
Inception Date: - April 28, 1997
2. HDFC MF Monthly Income Plan - Short Term Plan:-
Investment Objective: - The primary objective of Scheme is to generate regular returns
through investment primarily in Debt and Money Market Instruments. The secondary
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objective of the Scheme is to generate long-term capital appreciation by investing a
portion of the Scheme’s assets in equity and equity related instruments. However, there
can be No assurance that the investment objective of the Scheme will be achieved.
Investment Options: Quarterly Dividend Option, Monthly Dividend Option, and Growth
Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility
Nature of Scheme: - An open-ended income scheme. Monthly income is not assured and
is subject to availability of distributable surplus
Inception Date:- December 26, 2003
3. HDFC MF Monthly Income Plan - Long Term Plan:-
Investment Objective: - The primary objective of Scheme is to generate regular returns
through investment primarily in Debt and Money Market Instruments. The secondary
objective of the Scheme is to generate long-term capital appreciation by investing a
portion of the Scheme’s assets in equity and equity related instruments. However, there
can be no assurance that the investment objective of the Scheme will be achieved
Investment Options: Growth Plan, Quarterly Dividend Option, Monthly Dividend
Option. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Nature of Scheme: - An open-ended income scheme. Monthly income is not assured and
is subject to availability of distributable surplus
Inception Date: - December 26, 2003
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Chapter 4: Review of Literature /
Theoretical Background (delete whichever
is not applicable)
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HDFC MF SIP is similar to a Recurring Deposit. Every month on a specified date an amount
you choose is invested in a mutual fund scheme of your choice. The dates currently available
for SIPs are the 1st, 5th, 10th, 15th, 20th and the 25th of a month. You’ll be amazed to learn
about the many benefits of investing through HDFC MF SIP.
Become A Disciplined Investor
Being disciplined - It’s the key to investing success. With the HDFC MF Systematic
Investment Plan you commit an amount of your choice (minimum of Rs. 500 and in multiples
of Rs. 100 thereof*) to be invested every month in one of our schemes.
Think of each SIP payment as laying a brick. One by one, you’ll see them transform into a
building. You’ll see your investments accrue month after month. It’s as simple as giving at
least 6 postdated monthly cheques to us for a fixed amount in a scheme of your choice. It’s
the perfect solution for irregular investors.
*Minimum amounts may differ for each Scheme.
Reach Your Financial Goal
Imagine you want to buy a car a year from now, but you don’t know where the down-
payment will come from. HDFC MF SIP is a perfect tool for people who have a specific,
future financial requirement. By investing an amount of your choice every month, you can
plan for and meet financial goals, like funds for a child’s education, a marriage in the family
or a comfortable postretirement life. The table below illustrates how a little every month can
go a long way.
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Table A:-
Monthly Savings - What your savings may generate
Savings per month
(for 15 years)
Total amount invested
(Rs. in Lacs)
Rate of return
6.0% 8.0% 10.0%
(rupees in lacs, 15 years later)*
5000 9.0 14.6 17.4 20.9
4000 7.2 11.7 13.9 16.7
3000 5.4 8.8 10.4 12.5
2000 3.6 5.8 7.0 8.3
1000 1.8 2.9 3.5 4.2
*Monthly instalments, compounded monthly, for a 15-year period.
Disclaimer: The illustration above is merely indicative in nature and should not be construed
as investment advice. It does not in any manner imply or suggest performance of any HDFC
Mutual Fund Scheme(s).
Take Advantage of Rupee Cost Averaging
Most investors want to buy stocks when the prices are low and sell them when prices are
high. But timing the market is time consuming and risky. A more successful investment
strategy is to adopt the method called Rupee Cost Averaging. To illustrate this we’ll compare
investing the identical amounts through a SIP and in one lump sum.
Imagine Suresh invests Rs. 1000 every month in an equity mutual fund scheme starting in
January. His friend, Rajesh, invests Rs. 12000 in one lump sum in the same scheme. The
following table illustrate how their respective investments would have performed from Jan to
Dec:
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Table B:-
Suresh’s Investment Rajesh’s Investment
Month NAV Amount Units Amount Units
Jan-04 9.345 1000 107.0091 12000 1284.1091
Feb-04 9.399 1000 106.3943
Mar-04 8.123 1000 123.1072
Apr-04 8.750 1000 114.2857
May-04 8.012 1000 124.8128
Jun-04 8.925 1000 112.0448
Jul-04 9.102 1000 109.8660
Aug-04 8.310 1000 120.3369
Sep-04 7.568 1000 132.1353
Oct-04 6.462 1000 154.7509
Nov-04 6.931 1000 144.2793
Dec-04 7.600 1000 131.5789
*NAV as on the 10th every month. These are assumed NAVs in a volatile market
Disclaimer: The illustration above is merely indicative in nature and should not be construed
as investment advice. It does not in any manner imply or suggest performance of any HDFC
Mutual Fund Scheme(s). Rupee Cost Averaging neither ensures you profits nor protects you
from making a loss in declining markets.
As seen in the table, by investing through SIP, you end up buying more units when the price
is low and fewer units when the price is high. However, over a period of time these market
fluctuations are generally averaged. And the average cost of your investment is often
reduced.
Grow Your Investment with Compounded Benefits
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It is far better to invest a small amount of money regularly, rather than save up to make one
large investment. This is because while you are saving the lump sum, your savings may not
earn much interest.
With HDFC MF SIP, each amount you invest grows through compounding benefits as well.
That is, the interest earned on your investment also earns interest. The following example
illustrates this.
Imagine Neha is 20 years old when she starts working. Every month she saves and invests Rs.
5,000 till she is 25 years old. The total investment made by her over 5 years is Rs. 3
lakhs.Arjun also starts working when he is 20 years old. But he doesn’t invest monthly. He
gets a large bonus of Rs. 3 lakhs at 25 and decides to invest the entire amount.
Both of them decide not to withdraw these investments till they turn 50. At 50, Neha’s
Investments have grown to Rs. 46,68,273* whereas Arjun’s investments have grown to Rs.
36,17,084*. Neha’s small contributions to a SIP and her decision to start investing earlier
than Arjun have made her wealthier by over Rs. 10 lakhs.
Do All This Effortlessly
Investing with HDFC MF SIP is easy. Simply give us post-dated cheques or opt for an
Auto Debit from your bank account for an amount of your choice (minimum of Rs. 500 and
in multiples of Rs. 100 thereof*) and we’ll invest the money every month in a fund of your
choice. The plans are completely flexible. You can invest for a minimum of six months, or
for as long as you want. You can also decide to invest quarterly and will need to invest for a
minimum of two quarters.
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Chapter 5: Objective
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To understand the needs of the investors with respect to their investment and
various options where investors invest their money
To understand the awareness of SIP route to invest.
To understand the reasons to invest or not to invest in SIP.
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Chapter 6: Research Methodology
Research Methodology is the investigation of specific problem in detail. At first
problem is defined carefully for conducting research. There should be a good research
plan for conducting research. No research can be done without data collection. After all
this analysis made for getting solution for problem.
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Define the problem
Define the sample size
Collection of data
Analysis and interpretation
Defining the problem
Defining the research problem is first necessary step for any research. This work
should be done carefully. Here research problem is to know wilingess of general public
to work as an agent with private player or HDFC MUTUAL FUND.
Research plan
This report is based on primary as well secondary data, however primary data
collection was given more importance since it is overhearing factor in attitude studies.
One of the most important users of research methodology is that it helps in identifying
the problem, collecting, analyzing the required information data and providing an
alternative solution to the problem .It also helps in collecting the vital information that
is required by the top management to assist them for the better decision making both
day to day decision and critical ones.
Data sources:
Research is totally based on primary data. Secondary data can be used only for the
reference. Research has been done by primary data collection, and primary data has
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been collected by interacting with various people. The secondary data has been
collected through questionnaire.
Duration of Study:
The study was carried out for a period of two months, from 15th May to 15th July 2011
Sampling:
Sampling procedure: The sample was selected of them who are the customers/visitors
of HDFC Asset Management Company Limited AD-64/127, 4th Floor Arihant
Complex, Sigra Limited, Varansi irrespective of them being investors or not or
availing the services or not. It was also collected through personal visits to persons, by
formal and informal talks and through filling up the questionnaire prepared. The data
has been analyzed by using mathematical/Statistical tool.
Sample size:
The sample size of my project is limited to 100 people only.
Sample design:
Data will be presented with the help of bar graph, pie charts, line graphs etc.
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Chapter 7: Data Analysis and Interpretation
1. Qualification of the investors?
Table 1:-
Qualification Investors
Graduate/PG 58
Undergraduate 32
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Others(Students etc) 10
Chart 1:-
Graduate/PG Undergraduate Others(Students etc)0
10
20
30
40
50
60
70
58
32
10
Interpretation:-
Qualification of investor who are Graduate/PG are 58 , Undergraduate are 32 and other are
only 10 . We can say more graduate/PG people are investors
2. Occupation of the investors?
Table 2:-
Occupation No. of respondents
Govt. sector 27
Pvt. sector 38
29
Business 24
Agriculture 04
Others 07
Chart 2:-
Govt. Sector Pvt. Sector Business Agriculture Others 0
5
10
15
20
25
30
35
40
27
38
24
47
Interpretation:-
Occupation of investors pvt. Sector are 38 , govt. sector are 27 , business are 24 , agriculture are 4 and others are 7. We can say more number of investors are from pvt. Sector.
3. Monthly income of the investors?
Table 3:-
Income No. of respondents
Up to Rs.10,000 2
Rs.10,001 to 15,000 4
30
Rs.15,000 to 20,000 11
Rs.20,000 to 30,000 17
Rs.30,001 and above 66
Chart 3:-
2% 4%11%
17%
66%
Up to Rs.10,000 Rs. 10,001 to 15000 Rs. 15,001 to 20,000 Rs. 20,001 to 30,000 Rs. 30,001 and above
Interpretation:-
Family income of investors Up to Rs.10,000 are only 2% , Rs.10,001 to 15,000 are only 4%
Rs.15,001 to 20,000 are only 11% , Rs.20,001 to 30,000 are only 17% and above 30,000 are
66%. We can say , the family income of investors are more than 30,000 , they are more
invest.
4. How many people are invest?
Table 4:-
Yes 96
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No 4
Chart 4:-
96%
4%
Yes No
Interpretation:-
96% of people are invest and 4% of people are not invest. We can say most of the people
invest.
5. Awareness of various investment options?
Table 5:-
Investmentplan
Fixed deposit
Real estate
Mutualfund
Pensionplan
PPF Gold Any other
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No.of respondents
45 60 53 65 40 58 62
Chart 5:-
fixed deposit real estate mutul fund pension plan PPF gold any other0
10
20
30
40
50
60
70
45
60
53
65
40
5862
(Define investments avenues)
Interpretation:-
From the above charts we can interpret that awareness of other option like fixed deposit is 45,
real estate is 60 , mutual fund is 53 , pension plan 65 , PPF 40,gold 58 and any 62 other plan
among the most of investors.
6. Investment in systematic investment plan?
Table 6:-
Yes 55
33
No 45
Chart 6:-
Yes No0
10
20
30
40
50
60
Interpretation:-
55 people are invest in SIP and 45 people are not invest . we can say more people are invest
in SIP.
7. Reasons for investing in SIP?
Table 7:-
Capital prevention 55
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Retirement 52
Children education 48
Income growth 54
Tax saving 55
Others 45
Chart 7:-
Capital preven-
tion18%
Retirement17%
Chil-dren
educa-tion16%
Income growth17%
Tax saving18%
Others15%
Interpretation:-
People who invest for capital prevention are 55 , retirement are 52 , for children education are
48 , for income growth are 54 , for tax saving are 55 and for other are 45. We can say
different people invest according their needs and want.
8. If yes, in which assets class would you prefer to invest in Mutual Fund?
Table 8:-
TYPES OF SCHEMES RESPONSE PERCENTAGE
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EQUITY 30 50.00%
DEBT 22 36.67%
LIQUID 8 13.33%
Chart 8:-
EQUITY(50%) DEBT(36.67%) LIQUID(13,33%)
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
LIQUIDDEBTEQUITY
(Define schemes preferred by investors)
Interpretation: -
From the above chart it is getting clear that from 100 peoples sample 60(60%) people are
invest in Mutual fund and out of 30 (50%) people invests in equity assets class and
22(36.37%) people choose to invests in debt class but only just 8(13.33%) peoples choose to
invests in liquid class.
9. Do you invest in HDFC assets Management Company limited?
Table 9:-
YES NO TOTAL
36
56 44 100
Chart 9:-
56
44
0
10
20
30
40
50
60
YES NO
PREFERNCE
NO
OF
PE
OP
LE
Series1
(Define investment in HDFC assets Management Company)
Interpretation: -
From the above chart it is getting clear that out of 100 people sampled, 56 peoples are invest
in HDFC assets management company and 44 peoples are not invests in HDFC assets
management company.
10. Awareness of various schemes of HDFC?
Table 10:-
Schemes Of HDFC No. Of Investors
37
Equity Fund 43
Capital Builder Fund 2
Prudence Fund 17
Tax Saver Fund 35
Core And Satellite Fund 3
Top 200 Fund 16
Balanced Fund 1
Growth Fund 16
Others Fund 5
Chart 10:-
NO OF INVESTOERS
43
21735
3
161
16 5
EQUITY FUND CAPITAL BUILDER FUND
PRUDENCE FUND TAX SAVER FUND
CORE AND SATELITE FUND TOP 200 FUND
BALANCED FUND GROWTH FUND
OTHERS FUND
(Define scheme in which investors invest in HDFC assets Management Company)
Interpretation:
we can see that in HDFC assets Management Company’s EQUITY FUND maximum number
(43) of people are aware. In TAX SAVER FUND 35 number of people invests. In both TOP
200 FUND and GROWTH FUND 16 numbers of people are aware but in BALANCED
FUND, CAPITAL BUILDER FUND, CORE AND SATELITE FUND only 1, 2 and 3
people are aware.
11. By which medium you invest in HDFC assets Management Company limited?
Table 11:-
38
MEDIUM OF INVESTMENT NO. OF PEOPLE
DISTRIBUTOR 8
BANK 48
ONLINE / SELF 0
Chart 11:-
8
48
00
51015
20253035
404550
DISTRIBUTOR ONLINE
MEDIUMS
NO OF PEOPLE
NO OF PEOPLE
(Define mediums chosen by investors for invest in HDFC assets management company)
Interpretation: -
From the above chart it’s getting cleared that most of the peoples (48) are invest by bank and
only 8 peoples are invest by distributors. Nobody invests through online. So here HDFC
assets Management Company has to provide facility by which investors invest their money
without any middle man in mutual fund schemes through online.
Note: - Here out of 100 respondents, 44 respondents are not investing in HDFC assets
Management Company. These responds are not considered in these questions.
12. Do you know about ongoing new fund offer of HDFC Assets Management Company limited?
Table 12:-
39
AWARENESS OF NFO NUMBER PERCENTAGE
YES 58 58%
NO 42 42%
TOTAL 100 100%
Chart 12:-
NUMBER
58
42
YES
NO
Interpretation: -
The above pie - chart shows that around 58% people aware of on going new fund offer of
HDFC assets Management Company and only 42% people are unaware from on going new
fund offer of HDFC assets management company.
40
Chapter 8: Conclusions
41
Occupation, income level and qualification have impact on investors.
Most of the people invest regularly.
Distributor plays vital role in investment. Distribution channels are also important for the investment in SIP.
Lack of awareness is barrier for Systematic Investment Plan.
Tax saving, children education, retirement etc scheme influence customer to invest in SIP.
42
Chapter 9: Limitations
Some of the persons were not so responsive.
Possibility of error in data collection because many of investors may
have not given actual answers of my questionnaire.
43
Sample size is limited to 100 visitors of HDFC AMC
COMPANY LIMITED AD-64/127, 4th Floor Arihant
Complex, Sigra Limited, Varanasi
The research is confined to a certain part of Varanasi.
44
Chapter 10: Recommendations
The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits investing in mutual funds.
The advisors should target for more and more young investors. Young investors as
well as persons at the height of their career would like to go for advisors due to lack
of expertise and time.
45
The advisors may try to highlight some of the value added benefits of MFs such as tax
benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. These
benefits are not offered by other options single handed.
Organisation should engage banks to sell the systematic investment plan to increase
the number of investors. Company should training to the bank and distributor staff
about systematic investment plan.
46
Appendices
Questionnaire
NAME: -
ADDRESS: -
47
CONTACT NO: (O) (R) (M)
(1) (a). What is qualification:-
(b). What is occupation. Pl tick (√)
Govt. Ser Pvt. Ser Business Agriculture Others
(c). What is your monthly family income approximately? Pl tick (√).
Up to Rs.10,000
Rs. 10,001 to 15000
Rs. 15,001 to 20,000
Rs. 20,001 to 30,000
Rs. 30,001 and above
(2) Are you aware Systematic Investment plan?
Yes No
(3) If you are aware of asset management co. If Yes, which AMC will you
Prefer?
Assets Management Co.
a. HDFC MF
48
Graduation/PG Under Graduate Others
b. UTI
c. Reliance
d. SBI
e. Kotak
f. ICICI
(4)Which are the other options you are aware of?
a. Fixed deposit b. Mutual fundb. Pension plan c. PPFd. Insurance e. Stock market f. Gold g. Any other
(5) In which assets class do you want to invest in S I P in mutual funds?
Equity Debt Liquid
(6) Do you invest in HDFC Systematic investment Plan?
Yes No
(7) If yes, in which scheme have you invested?
49
Equity
Capital builder
Prudence fund
Tax saver
Top 200 fund
Balanced fund
Growth
Others
(8) Reasons for investing in SIP?
a. Capital prevention ( )b. Tax saving ( )c. Children education ( )d. Income growth ( )e. Retirement ( )f. Any other ( )
(9) By which medium have you invested?
50
Distributor Bank Online
(10) What is the reason for selecting HDFC S I P ?
Better fund house
Excellent customer service provider
Consistent return
Other
If other please specify
(11) If no, why do not invest in SIP?
(a) No monthly imprest
(b)Not much aware
(c) Other better option
(12) Do you know about ongoing new fund offers of HDFC AMC?
Yes No
51
Would you like the bank to contact you for providing information about its fund offers?
Remarks if any other please specifies: -
Thank you for your time.
52
Bibliography
www.hdfcfund.com
www.the-finapolis.com
www.mutualfundsindia.com
www.valueresearchonline.com
www.moneycontrol.com
www.morningstar.com
www.yahoofinance.com
www.theeconomictimes.com
www.rediffmoney.com
www.bseindia.com
53
www.nseindia.com
www.investopedia.com
Journals & other references
HDFC AMC manual
The Economic Times
Business Standard
The Telegraph
Business India
Fact sheet and statements of various fund houses
54