SYMBIOSIS CENTRE FOR DISTANCE LEARNINGFINANCIAL INCLUSION IN
INDIA TOP THREE BANKS OF INDIA For partial fulfillment of the
requirement for the degree ofPOST GRADUATE DIPLOMA IN BANKING AND
FINANCE SESSION:2013-15SUBMITTED BY:Name: SURINDER KAURRegistration
No. -201117826Course: p.g.d.m.-(IV-Sem.)Centre city: Bareilly
Symbiosis centre for distance learning
Certificate
This is to certify that Mr SURINDER KAUR a student of PGDM IV
Semester has completed his/her Research Project Report titled
COMPARETIVE STUDY OF EQUITY DIVERCIFICATION ICICI MUTUAL FUND WITH
HDFC MUTUAL FUND assigned by MBA Department under my supervision.It
is further certified that she has personally prepared this report
that is the result of her personal survey / observation. It is of
the standard expected to PGDM student and hence recommended for
evaluation.
DECLARATION
This is to be declare that I SURINDER KAUR student of PGDM in
SYMBIOSIS CENTRE FOR DISTANCE LEARNING have given original data and
information to best of my knowledge in the report entitle
comparative study of equity diversification ICICI mutual fund with
HDFC mutual fundI further state that no part of this information
has been used for any assignment but for Partial fulfillment of the
requirements towards the completion of the above mentioned
Course.
SURINDER KAUR
AKNOWLADGEMENT
If words are considered as a symbol of approval and taken of
appreciation then let the words play the heralding role expressing
my gratitude.First of all I thank to my Gracie god who blessed me
with all kind of facilities that had been provided to me for
completion of my report.Im also grateful to my teacher for guiding
me to learn and helped me on project on COMPARITIVE STUDY OF EQUITY
DIVERSIFICATION ICICI MUTUAL FUND WITH HDFC MUTUAL FUND.My endless
appreciation goes to my all respected faculty who has stood by my
side and give me moral support whenever I was low and boosted my
will power.
CONTENT
CONTENTSPAGE NUMBERS
Executive summary6 to 7
Chapter.1Introduction of topic8 to 10
Chapter.2Literature Review11 to 14
Chapter.3Research Design15 to 23
Chapter.4Data analysis & interpretation24 to 47
Chapter.5Findings & conclusions48 to 49
Chapter 6Summary &conclusion
50
Annexure 1Bibliography/References51 to 52
Annexure 2Questionnaire53to59
EXCICUTIVE SUMMRY Even though the first mutual fund in the
country is more than40 yrs old, the mutual fund industry is still
nascent one. Most of the mutual funds are about 10 years old. As
percentages of the savings of the household sector; they manage
only about3%. This shows, however, a great potential that the
industry has. This slow growth by the mutual funds is a surprising
one when one collects that, just over a decade back, the industry
in one year, was managing as high as 8-9% of financial savings of
the household sector. Also during the last 15 years, interest rates
on safe banking instruments have been coming down. The number of
mutual funds has grown but their penetration in household sector
has not increased commensurately. This calls for an explanation on
further research. Unfortunately the area of mutual funds has been a
highly under researched one. The relative yields of long term
instruments, their riskiness, and comparative performance etc are
areas of research where not enough attention has been paid by the
researchers. The reason may be that industry is an ascent one and a
decade is not sufficiently long period for drawing meaningful
conclusions. The period chosen for this study is when public mutual
funds have already been set up and private sector funds entered and
global mutual funds are just entering. The external environments
are common to both. The public sector mutual funds have the legacy
and performance and advantage of distribution network, but now they
are facing the adverse market situation. The private sector mutual
funds entered perhaps at a wrong time but have a freedom to recruit
talent at the market price and started with the best available
talent in the financial sector. This set up allowed good
competitive environments for fund managers. There is a good reason
to deviate from the long term study of other countries because the
returns on the equity investment outperform returns on the risk
free instruments. Only a good research can help us to know whether
this is also an appropriate time for India
CHAPTER- 1 INTRODUCTION OF THE TOPICMutual Funds have become a
widely popular and effective way for investors to Participate in
financial markets in an easy, low-cost fashion, while muting risk
Characteristics by spreading the investment across different types
of securities, also known as diversification. It can play a central
role in an individuals Investment strategy. They offer the
potential for capital growth and income through investment
performance, dividends and distributions under the guidance of a
portfolio manager who makes investment decisions on behalf of
mutual fund Unit holders. Over the past decade, mutual funds have
increasingly become the Investors vehicle of choice for long-term
investment. It becomes pertinent to study the performance of the
mutual fund. The relation between risk-return determines the
performance of a mutual fund scheme. As risk is commensurate with
return, therefore, providing maximum return on the investment made
within the acceptable associated risk level helps in segregating
the better performers from The laggards. Many asset management
companies are working in India, so it is Necessary to study the
performance of it which may be useful for the investors to select
the right mutual fund. A Mutual Fund is a trust that pools
thesavings of a number of investors who sharea common financial
goal. Anybody with aninvestible surplus of as little as a few
hundred rupees caninvest Mutual Funds. These investors buy units
ofa particular Mutual Fund scheme that hasdefined investment
objective and strategy. The money thus collected is theninvested by
the fund managerin different types of Securities. These could range
from shares to debentures to money market Instruments, depending
upon the scheme have stated objectives. The income earned
throughthese investments and the capital appreciation realized by
the scheme is shared by its unit in proportion to the number of
units owned by them. Thus aMutual Fund is the most suitable
investment for the commonman as it offers an opportunity to invest
in a diversified, professionally managed basketof securities at
relatively low-cost
OBJECTIVE To give a brief idea about the benefits available from
mutual fund investment.
To give an idea of the type of schemes available.
To discuss about the market trends of mutual fund
investment.
To study some of the mutual fund schemes.
To study some of the mutual fund companies.
Observe the some management process of mutual funds.
Explore the recent developments in the mutual fund in India.
To give an idea about the regulation of mutual fund.
To evaluate and compare the performance of equity diversified
mutual fund schemes of selected companies .
To compare the performance of equity diversified mutual fund
schemes of selected companies vis--vis the market. SCOPE
The research work attempt to evaluate the performance of mutual
fund Industry in India under the regulated environment after the
introduction Of the icici and reliance mutual fund regulations 1996
enforcing Uniformity in rules and regulations. Performance
evaluation of mutualFund in this study is confined to three aspects
namely, financial investing public and regulatory body. In
financial aspects, the Performance of the mutual fund is evaluated
from return incurred bythem and their comparison with the stock
market index. Investment Performance of the mutual fund is
evaluated through a survey conducted on the mutual fund investors
considering their attitude, satisfaction and their aspects,
finally, the impact of regulatory measures taken from time to time
by by regulatory authority on the performance of the mutual fund.
For evaluating the financial performance of selected mutual fund,
the period of the study is taken from 2002-2003 to 2013-2014etc.
April 2002, march 2014.
CHAPTER- 2 LITLATURE REVIEWSapir & Narayan(2003) examines
the performanceof Indian mutual fund in a bear market through
relative performance index, risk-return analysis, Tenors ratio,
Sharp's ratio, Sharp's measure, Jensen's measure, and Fames measure
with a sample of 269 open ended schemes (out of total schemes of
433). The results of performance measures suggest that most of the
mutual fund schemes in the sample of 58 were able to satisfy
investor's expectations by giving excess returns over expected
returns based on both premium for systematic risk and total risk.
Rao D. N (2006) studied the financial performance of select
open-ended equity mutual fund schemes for the period 1st April 2005
31st March 2006 pertaining to the two dominant investment styles
and tested the hypothesis whether the differences in performance
are statistically significant. The analysis indicated that growth
plans have generated higher returns than that of dividend plans but
at a higher risk studied classified the 419 open-ended equity
mutual fund schemes intosix distinct investment styles. the
empirically testing on the basis of fund manager performance and
analyzing data at the fund-manager and fund-investor levels. The
study revealed that the performance is affected by the saving and
investment habits of the people and at the second side the
confidence and loyalty of the fund Manager and rewards- affects the
performance of the MF industry in India. Mehta Sushilkumar (2010)
analyze the performance of mutual fund schemes of icici and
reliance and found out that HDFC schemes have performed better then
the ICICI in the year 2007-2008. Selvam et.al (2011) studied the
risk and return relationship of Indian mutual fund schemes. The
study found out that out of thirty five sample schemes, eleven
showed significant tvalues and all other twenty four sample schemes
did not prove significant relationship between the risk and return.
According to t-alpha values, majority (thirty two) of the sample
schemes' returns were not significantly different from their market
returns and very few number of Sample schemes' returns were
significantly different from their market.The topic of project was
mutual funds A case study and survey. After the research works that
mutualfund industry is enlarging its size inIndia investors are
willing pour money in mutual funds. Despite some Temporary
registrants, othereconomic modes are in favorable mode. Thus we
need proper management of advisory services more schemes financial
advisor and institution to cater the market.Industry need to revise
its business strategy. Investors perception is not Prioritized yet
instead of completing target, advisors working under Institutions
should consider the requirements of the investors. We need
Changingpattern of selling mutual funds.The topic was a study of
preferences of investors for investment in mutual funds for the
reliance mutual funds. that most of the investors dont invest in
Sbimutual fund due to nonawareness. And he adds that most ofthe
investors of Patna had invested in reliance or icici mutual funds
andICICI mutual funds also has good brandposition among them. And
icici mf places after ICICI mutual fund according to respondents.
The most portfolio are equity second most is balanceand least
prefer portfolio was debtsportfolio. Most of the investors doesnt
want to invest in sectored fund. And he observed thatmany people
havethe fear of mutual fund. They need information brand place and
important role and relaince mutual fund ICICI mf etc. arewell non
brandso they are doing well.Review of literature is a brief
description about mutual funds research work conducted in India as
well as in abroad. Some of these studies have been reviewed in the
following paragraphs in order to establish the research gap and
need for the present study. Treynor (1965) developed a methodology
for evaluating mutual fund performance that is popularly referred
to as reward to volatility ratio. Sharpe (1966) carried out a well
acknowledged and widely quoted work on performance evaluation. He
also developed a composite measure of performance evaluation that
considers both return & risk. Jensens (1968) classic studies
developed an absolute measure of performance based upon the Capital
Asset Pricing Model. The excess fund returns were regressed upon
the excess market returns to estimate the characteristics line of
the regression model. J. Williamson (1972) made an effort on the
study of measuring and forecasting of mutual funds performance and
test the hypothesis that a funds performance affected by net new
money. There is a popular belief that the availability of net new
money tends to increase performance. Williamson, however, found no
correlation. He also sought to determine if net new money was
related to past performance with the result that no correlation was
found. Kun and Jen (1978) estimated the systematic risk and
performance of 49 mutual funds over the period 1960-71 by utilizing
monthly price data. The result indicated that a very substantial
fraction of mutual funds had two level of systematic risk during
each of three sub periods. Kane and Marks (1983) developed
conditions under which Sharpe (1966) measure would correctly and
completely capture market timing ability of fund managers. Lee and
Rahman (1989) examined market timing and selectivity performance of
selected mutual funds. They concluded that at the individual level,
there was some evidence of superior forecasting ability on the part
of fund manager. Grinblatt and Titman (1994) reported that mutual
fund performance evaluation measures generally yielded similar
inferences with the same benchmark. Jayadev (1998) conducted a
study on the performance evaluation of portfolio managers. He
examined the performance of 62 mutual fund schemes using monthly
NAV data for the period of April 1987 to March 1995. The study
showed that the Indian mutual funds were not properly diversified.
Singh and Chander (2001) appraised the status of Indian mutual fund
in pre-liberalisation and Asia Pacific Journal of Marketing &
Management Mohanan (2006) found that Indian mutual fund industry
was one of the fastest growing sectors in the Indian capital and
financial markets. Mutual funds assets under management grew by 96
percent between the end of 1997 and June 2003 and as a result it
rose from 8 percent of GDP to 15 percent. Agrawal (2007) examined
that since the development of the Indian capital Market and
deregulations of the economy in 1992 it has came a long way with
lots of ups anddowns. The study revealed that the performance is
affected by saving and investment habits of the people; at the
second side the confidence and loyalty of the fund manager and
rewards affects the performance of the mutual fund industry in
India. Parihar et al. (2009) revealed that mutual funds
arefinancial intermediaries concerned with mobilizing savings of
those who have surplus and the canalization of these savings in
those avenues where there is a demand for funds. CHAPTER 3 RESEARCH
DESIGENResearch DesignA method and systema statical analysisbased
on past history tofacilitate the investmentprocess. respective fund
using a principal factor such as cumulativegrowth and stability.
For tracking investment, upper and lower control limits are
definedaccording to standard deviation of average total return over
predetermine period of time to improve chances ofthe investors
achieving a profit as well as a near optimum performance. .This
research methodology helps us to giveinformation about the
opportunities of mutual funds investment. It will help to study the
market ofmutual funds better.Sample DesignAll mutual fund companies
and there return on investment.A sample design is a definite plan
for obtaining a sample from a given population. It refers to the
technique or method the researcher would adopt in selecting items
for the sample.
Tools of data collectionThere are many methods of data
collection which can be used according to nature and type of
research. I will use following data for the research purpose My
research only the basis of secondary data.
Secondary dataArticlesFactsheetManagement generalsAnnual
reportResearch papersInternetCompanies product voucherNews
papersTools for data Analysis1.Return on investment2. Graph3.
ChartMajor FindingAfter valuation of the data I amfinding out some
positive and some negativeresult forIndian market mutual funds
opportunities.Positive results:1. Professional Management -The
basic advantage of funds is that, they are professional managed, by
well qualified professional. Investors purchase funds becausethey
do not have the time or the expertise to managetheir own portfolio.
A mutual fund is considered to be relatively less expensive way to
make andmonitor their investments.2. Diversification -Purchasing
units in a mutual fund instead ofbuying individual stocks orbonds,
the investors risk is spread out and minimized up to certain
extent. The ideabehind diversification is to invest in a large
number of assets so that aloss in any particularinvestment is
minimized by gains in others.3. Economies of Scale -Mutual fund buy
and sell largeamounts of securities at a time, thus help to
reducing transaction costs, and helpto bring down the averagecost
of the unit fortheir investors.4. Liquidity -Just like an
individual stock, mutual fund also allows investors to liquidate
their holdings as and when they want.
5. Simplicity -Investments in mutual fund are considered to
beeasy, compare to otheravailable instruments in the market, and
the minimum investment is small. Most AMC also have automatic
purchase plans wherebyas little as Rs. 2000, where SIP start with
just Rs.50per month basis.
STATISCAL TOOLS: For the purpose of analysis, Mean and
percentage methods are used for the calculation and the result was
interpreted. This test was used to minimize the error of the data
collected. Statistical tools used:Sample tools are used for analyze
purpose, they are follows: Cross tab method Chi square test Phi and
Cramer V test
Null hypothesis (HO) states: the two attributes are independent
of each other.
Alternative hypothesis (HI) states: the two attributes are
dependent of each other.
QUESTIONNARE1. What kind of investments you prefer most? Pl tick
(). All applicablea. Saving accountb. Fixed depositsc. Insurance d.
Mutual Fund
e. Post Office-NSC, etcf. Shares/Debenturesg. Gold/ Silverh.
Real Estate
I. PPFj. PF
2. While investing your money, which factor you prefer most? Any
oneLiquidity Low RiskHigh ReturnCompany reputation
3. Have you ever invested your money in mutual fund?Yes No
If yes, a) Where do you find yourself as a mutual fund investor?
Totally ignorant [ ] Partial knowledge of mutual funds [ ] Aware
only of any specific scheme in which you invested [ ] Fully aware [
]
b) In which kind of mutual you would like to invest?
Public [ ] Private [ ]
c) how do you come to know about Mutual Fund?a. Advertisementb.
Peer Groupc. Banks d. Financial Advisors
d) Which mutual fund scheme have you used?Open-ended
Close-ended
Liquid fundMid- Cap
Growth fundRegular Income fund
Long-CapSector fund
a) If not invested in Mutual Fund then why? Not aware of MF
Higher riskNot any specific reason
4. which feature of the mutual funds allure you most?
Diversification [ ] Better return and safety [ ] Reduction in risk
and transaction cost [ ] Regular Income [ ] Tax benefit [ ]
5. In which Mutual Fund you have invested? Please tick (). All
applicable.a. SBIMF
b. UTI
c. HDFC
d. Reliance
e. ICICI prudential funds
f. JM mutual fund
g. Other. Specify
6. When you invest in Mutual Funds which mode of investment will
you prefer? a. One Time Investmentb. Systematic Investment Plan
(SIP)
7. Where from you purchase mutual funds? Directly from the AMCs
[ ] Brokers only [ ] Brokers/ sub-brokers [ ] Other sources [ ]
8. Which AMC will you prefer to invest? Assets Management
Co.
a. SBIMF
b. UTI
c. Reliance
d. HDFC
e. Kotak
f. ICICI
g. JM finance
9. Which sector are you investing in mutual fund sector?i.
General 1st
ii. Oil and petroleum
iii. Gold fund
iv. Diversified equity fund
v. Power sector
vi. Debt fund
vii. Banking fund
viii. Real estate fund
ix. General 1st
10. How would you like to receive the returns every year? a.
Dividend payout b. Dividend re-investmentc. Growth in NAV
11. Personal Details: (a). Name:- (b). Add: - Contact No:- (c).
Age:- (d). Qualification:-Graduation/PGUnder GraduateOthers
(e). Occupation. Pl tick ()Govt. SecPvt.
SecBusinessAgricultureOthers
(g). What is your monthly family income approximately? Pl tick
().Up to Rs.10,000Rs. 10,001 to 15000Rs. 15,001 to 20,000Rs. 20,001
to 30,000Rs. 30,001 and above
CHAPTER- 4 DATAANALYSIS AND INTERPRETATION
1. Do you invest in mutual fund?
YES100
NO0
Interpretation:-All the candidates who are asked to fill the
questionnaire have invested in mutual fund.
2. With which company do you have invested in mutual funds?
HDFC 65
ICICI 35
Reliance 0
SBI 0
LIC 0
Kotak Mahindra 0
Others 0
Interpretation:Out of 100 candidates up to 65have invested in
mutual fund with HDFC & 35 have invested with ICICI. There is
no investor who have invested in mutual fund with any another
company.
VAR00001
Observed NExpected NResidual
HDFC6550.015.0
ICICI3550.0-15.0
Total100
Test Statistics
VAR00001
Chi-Square9.000a
df1
Asymp. Sig..003
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 50.0.
3. What is your age? .15-25 8
25-35 12
35-45 60
More than 45 20
Interpretation:
60 investors are of age between 35-45. 20 are of age more than
45. 12 are of between of 25-35. 8 are of 15-25. This data shows
that many investors are of middle age & there are less
investors of young age in mutual fund.
One-Sample Statistics
NMeanStd. DeviationStd. Error Mean
VAR000011002.9200.80000.08000
One-Sample Test
Test Value = 0
tdfSig. (2-tailed)Mean Difference95% Confidence Interval of the
Difference
LowerUpper
VAR0000136.50099.0002.920002.76133.0787
4. What is your income? (Yearly based)
1 lakh 0
2-4 lakh 10
4-5 lakh 20
More than 5 70
Interpretation:
Up to 70 investors have income more than 5 lakh. 20 have between
4-5 lakh.10 investors have income between 2-4 lakh & there is
no investor who have income up to 1akh. VAR00001
Observed NExpected NResidual
1 lakh825.0-17.0
2-4 lakh1225.0-13.0
4-5 lakh6025.035.0
more than 52025.0-5.0
Total100
Test Statistics
VAR00001
Chi-Square68.320a
df3
Asymp. Sig..000
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 25.0.
5. From where you come to know about this companys mutual fund
schemes? Family & relatives 35
Friends & peers 40
Company employee 15
Others 10
Interpretation:
Many investors (up to 40) have been come to know about the
company to be invested by their friends & peers.35 have been
known by their family & relatives .15have been come to know by
company employees & 10 by others. This means many have come to
know by their friends & peers.
VAR00001
Observed NExpected NResidual
Family & relatives3525.010.0
friends & peers4025.015.0
Company employee1525.0-10.0
Others1025.0-15.0
Total100
VAR00001
Observed NExpected NResidual
Family & relatives3525.010.0
friends & peers4025.015.0
Company employee1525.0-10.0
Others1025.0-15.0
Total100
6. What is the time duration of your investment?
0-1 year 15
1-2 year 35
2-4year 30
more than 4 20
Interpretation:
15 investors have time of investment less than one year. 20 have
time duration of their investment between of 1-2 year. 30 have
between 2-4 year & 35 have more than 4 years.So, we can say
that 35 investors have more experience than others.
VAR00001
Observed NExpected NResidual
0-1 year1525.0-10.0
1-2 year3525.010.0
2-4 year3025.05.0
more than 42025.0-5.0
Total100
Test Statistics
VAR00001
Chi-Square10.000a
df3
Asymp. Sig..019
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 25.0.
7. Are you satisfied by service of the companys employees /
peoples behavior?
Highly satisfied 15
Satisfied 35
Neutral
30
Dissatisfied 15
Highly Dissatisfied
5
Interpretation: Out of 100 investors 15 are highly satisfied. 35
are satisfied. 30 are neutral towards employee behavior of a
company. 15 are dissatisfied. 5 are highly dissatisfied. We say
that many people are satisfied by employee behavior.
VAR00002
Observed NExpected NResidual
highly satisfied1520.0-5.0
satisfied3520.015.0
neutral3020.010.0
dissatisfied1520.0-5.0
highly dissatisfied520.0-15.0
Total100
8. What is your risk profile?
Innovator 20
Moderate 65
Risk adverse 15
Interpretation:
20% investors are innovator means they like to take risk for
more returns. 15% are moderate towards risk means they are
indifferent towards risk. 65% are risk adverse means they mainly
try to avoid risk.
VAR00002
Observed NExpected NResidual
innovator2033.3-13.3
moderate6533.331.7
risk adverse1533.3-18.3
Total100
Test Statistics
VAR00002
Chi-Square45.500a
df2
Asymp. Sig..000
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 33.3.
9. What you feel about the company norms, documentation &
formalities?
Highly Satisfied 15
Satisfied 25
Neutral 40
Dissatisfied 15
Highly dissatisfied 5
15%25%40%15%5% Highly Satisfied Satisfied Neutral Dissatisfied
HighlyDissatisfied
Interpretation:15% investors are highly satisfied by companys
documentation policy (filling up the forms etc.). 25% are
satisfied, 40% never cares about it or are moderate towards it ,
15% are dissatisfied by it & 5% are highly dissatisfied.
VAR00002
Observed NExpected NResidual
highly satisfied1520.0-5.0
satisfied2520.05.0
neutral4020.020.0
dissatisfied1520.0-5.0
highly dissatisfied520.0-15.0
Total100
Test Statistics
VAR00002
Chi-Square35.000a
df4
Asymp. Sig..000
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 20.0.
10. What you say which provides better returns?
HDFC 68
ICICI 32
Interpretation:
According to collected data 68 investors thinks that HDFC
provides better returns where as 32 to think that ICICI provides
better returns.VAR00001
Observed NExpected NResidual
HDFC6850.018.0
ICICI3250.0-18.0
Total100
Test Statistics
VAR00001
Chi-Square12.960a
df1
Asymp. Sig..000
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 50.0.
11. Would you like to exchange your investment with one another
between HDFC & ICICI? Yes 15
No 85
Interpretation:15 investors said that they would like to change
their investment with each another between HDFC & ICICI. But 85
investors say that they are ok with their companies and they
wouldnt like to exchange their investment.
VAR00001
Observed NExpected NResidual
Yes1550.0-35.0
No8550.035.0
Total100
Test Statistics
VAR00001
Chi-Square49.000a
df1
Asymp. Sig..000
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 50.0.
CHAPTER-5
FINDINGS
In my research I have founded following things:-
Investors have more faith HDFCs mutual fund.
As the age increases investors are much satisfied, see more risk
& become more risk adverse.
Old people &Widows prefer lower risk.
Investors are not highly satisfied by company rules &
employee behavior.
Investors think that HDFC provides better returns than
ICICI.
CONCLUSION To conclude we can say that mutual fund is a very
much profitable tool for investment because of its low cost of
acquiring fund, tax benefit, and diversification of profits &
reduction of risk. Many investors who have invested in mutual fund
have invested with HDFC and them also thinks that it provides
better returns than ICICI .There is also an affect of age on mutual
fund investors like; old people & widows want regular returns
than capital appreciation. Companies can adopt new techniques to
attract more & more investors. In my study I was suppose to do
comparative analyses the mutual fund of HDFC &ICICI and I had
found that people consider HDFC better than ICICI. But ICICI have
also respondents and it can increase its investors by improving
itself in some terms.
To conclude we can say mutual fund is a best investment vehicle
for old & widow, as well as to those who want regular returns
on their investment.
Mutual fund is also better and preferable for those who want
their capital appreciation.
Both the companies are doing considerable achievements in mutual
fund industry.
There are also so many competitors involved those affects on
both companies.
RECOMMENDATION
In my study I have found some limitations. For that I can
suggest both
companies following suggestions or areas of improvement:-
ICICI bank should try to provide better returns to its investors
as compare to HDFC.
Both companies should try to invest in better securities for
better profits.
Both companies should try to satisfy their customer by better
customer service or by improving customer relationship
management.
Companies should try to make people initiative towards risk.
Investors should be made fully aware of the concept of mutual
fund & all the terms and conditions. It should more emphasize
in advertising, as it is the most Powerful tool to position ant
brand in the mindsets of customers.
REFERENCES
[1] Agrawal, D. (2006). Measuring Performance of Indian Mutual
Funds. Prabandhan , 179-185.[2] Guha, S. (2008). Performance of
Indian Equity Mutual Funds vis-a-vis their Style Benchmarks.
TheICFAI Journal of Applied Finance, 49-81.[3] Madhumathi, S. P.
(2005). Characteristics & performance evaluation of selected
Mutual Funds in India.9th Indian Institute of Capital Market
Conference.[4] Michael, C. J. (1967). The Performance of Mutual
Funds in the period 1945-1964. Journal of Finance , 389-416.[5]
Sharpe, W. (1966). Mutual Fund Performance. The Journal of Business
, 119.[6] Treynor, J. (1965). How to Rate Management of Investment
Funds? Harvard Business Review , 63-75.[7] Sapar, Narayan Rao and
Madava, Ravindran, Performance Evaluation of Indian Mutual Funds.
Availableat SSRN: http://ssrn.com/abstract=433100 or
http://dx.doi.org/10.2139/ssrn.433100[8] Rao, D. N., Investment
Styles and Performance of Equity Mutual Funds in India (August 6,
2006).Available at SSRN: http://ssrn.com/abstract=922595 or
http://dx.doi.org/10.2139/ssrn.922595[9] Selvam, Murugesan and
Palanisamy, Bhuvaneswari, Analysis of Risk and Return Relationship
of IndianEquity (Dividend) Mutual Fund Schemes (2011). Available at
SSRN: http://ssrn.com/abstract=1862214[10] Agrawa, D. (2009). A
Comparative Study of Equity Based Mutual Fund of Reliance and
HDFC.Prabandhan , 145-154.[11] http://www.amfiindia.com[12]
http://www.bseindia.com[13] http://www.rbi.org.in[14]
http://www.mutualfundsindia.com
QUESTIONNARE 1. What kind of investments you prefer most? Pl
tick (). All applicablea. Saving accountb. Fixed depositsc.
Insurance d. Mutual Fund
e. Post Office-NSC, etcf. Shares/Debenturesg. Gold/ Silverh.
Real Estate
I. PPFj. PF
2. While investing your money, which factor you prefer most? Any
oneLiquidity Low RiskHigh ReturnCompany reputation
3. Have you ever invested your money in mutual fund?Yes No
If yes, c) Where do you find yourself as a mutual fund investor?
Totally ignorant [ ] Partial knowledge of mutual funds [ ] Aware
only of any specific scheme in which you invested [ ] Fully aware [
]d) In which kind of mutual you would like to invest?
Public [ ] Private [ ] c) how do you come to know about Mutual
Fund?a. Advertisementb. Peer Groupc. Banks d. Financial
Advisors
e) Which mutual fund scheme have you used?Open-ended
Close-ended
Liquid fundMid- Cap
Growth fundRegular Income fund
Long-CapSector fund
b) If not invested in Mutual Fund then why? Not aware of MF
Higher riskNot any specific reason
4. which feature of the mutual funds allure you most?
Diversification [ ] Better return and safety [ ] Reduction in risk
and transaction cost [ ] Regular Income [ ] Tax benefit [ ]5. In
which Mutual Fund you have invested? Please tick (). All
applicable.a. SBIMF
b. UTI
c. HDFC
d. Reliance
e. ICICI prudential funds
f. JM mutual fund
g. Other. Specify
6. When you invest in Mutual Funds which mode of investment will
you prefer? a. One Time Investmentb. Systematic Investment Plan
(SIP)
7. Where from you purchase mutual funds? Directly from the AMCs
[ ] Brokers only [ ] Brokers/ sub-brokers [ ] Other sources [ ]8.
Which AMC will you prefer to invest? Assets Management Co.
a. SBIMF
b. UTI
c. Reliance
d. HDFC
e. Kotak
f. ICICI
g. JM finance
9. Which sector are you investing in mutual fund sector?x.
General 1st
xi. Oil and petroleum
xii. Gold fund
xiii. Diversified equity fund
xiv. Power sector
xv. Debt fund
xvi. Banking fund
xvii. Real estate fund
xviii. General 1st
10. How would you like to receive the returns every year? a.
Dividend payout b. Dividend re-investmentc. Growth in NAV
11. Personal Details: (a). Name:- (b). Add: - Contact No:- (c).
Age:- (d). Qualification:-Graduation/PGUnder GraduateOthers
(e). Occupation. Pl tick ()Govt. SecPvt.
SecBusinessAgricultureOthers
(g). What is your monthly family income approximately? Pl tick
().Up to Rs.10,000Rs. 10,001 to 15000Rs. 15,001 to 20,000Rs. 20,001
to 30,000Rs. 30,001 and above
THANK YOU
4