Mutual-Fund Project.doc

8/11/2019 Mutual-Fund Project.doc

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A

Major Project Report

On

HDFC MUTUAL FUND

Submitted for partial ful llment of requirement for theaward of Master of Business Administration

PUNJAB TECHNICAL UNIVER T!

JALAN"HAR #PUNJAB$

ession %&'%(')

Super i!ion "#

Submitted b#

Name of the $uide Name of the!tudent

De!i%nation

Department &ollNo''''(

de%ree


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Of

%&')

**********************************************INTERNATI+NAL CH++L +, MANA-EMENT AN"

TECHN+L+-!

Sailee )nternational* Old MH" Colon#* $orai &oad* "ori ali+,-* Mumbai./0

MAHA&ASHT&A(

M"A )1 Seme!ter


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DECLARATION

) the under!i%ned !olemnl# de2lare that the report of

HDFC MUTUAL FUND * i! ba!ed m# own wor3 2arried out

durin% the 2our!e of m# !tud# under the !uper i!ion of

) a!!ert that the !tatement! made and 2on2lu!ion!

drawn are an out2ome of the pro4e2t wor3( ) further

de2lare that to the be!t of m# 3nowled%e and belief that

the pro4e2t report doe! not 2ontain an# part of an# wor3

whi2h ha! been !ubmitted for the award of an# other

de%ree5diploma52erti 2ate in thi! Uni er!it# or an# otherUni er!it#(

&ollNo(6


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CERTI,ICATE B!THE E/AMINER

T0is is certif1 t0at t0e project entit2ed

THE H",C MUTUAL ,UN"

UBMITTE" B!

e33e1 anandpara Ro22 No4( Enro22ment No4(

Has 5een e6amined 51 t0e undersi7ned as apart of t0e

mination for t0e a8ard of Master of Business administration

ree of PUNJAB TECNICAL UNIVER IT! JHALAN"ER #PUNJAB$IA9


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Acknowledgement

I express my sincere thanks to my project guide, Designation , Deptt. Finance, foguiding me right form the inception till the successful completion of the project. I

sincerely acknowledge her for extending their valuable guidance, support for

literature, critical reviews of project and the report and above all the moral support

he had provided to me with all stages of this project.

I would also like to thank the supporting staff Finance & H.R. Deportment, for their help and cooperation throughout out project

. __________________


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Name ! "ekke# Anand$a%a

%oll no !

'A ! (()(( *eme+te%

CHA TER TO IC AGENO

- INTRODUCTION 1. !"!#$ %!&D '("!)*. +. '- )(/. 0(&(%I"' % !"!#$ %!&D. -#)I"#$ 2#I&

3. I&+('" (&" -4I"(4I#


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/ O'0ECTI1E OF THE *TUD2 -3 A'OUT HDFC UTUAL FUND

1. 567 6D%- !"!#$ %!&D*. ') &' 4'

. "4!'"((

/. # - DI4(-" 4'

. #5#4D'

-4

) RODUCT &*ER1ICE1. "7)(' % !"!#$ %!&D

*. I&+('" (&" )$#&. )4 D!-" % !"!#$ %!&D

/3

5 ART OF 2 *U ER TRAINING )6ETHODOLOG2 OF THE *TUD2

1. 4('(#4-6 ("6 D $ 27*. 67) "6('I' ' !4-(' % D#"#

- $$(-"I &. % "6( '"!D7/. D#"# - $$(-"I & 8 #$7'I'

57

6 8UE*TIONARE 3

4 FINDING, RECO ENDATION,CONCLU*ION

6

9 'I'LIOGRA H2 6/


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CHA TER - INTRODUCTION

1. !"!#$ %!&D '("!)*. +. '- )(

/. 0(&(%I"' % !"!#$ %!&D. -#)I"#$ 2#I&3. I&+('" (&" -4I"(4I#


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INTRODUCTION

"he financial market plays a crucial role in the in the economic development of

a country by facilitating the allocation of scarce resources. %inancial markets

essentially involve the allocation of resources. "his can be thought of as the

brain of the entire economic system, the locus of central decision9making: if

they fail, not only will the sectors profit be lower than would otherwise have

been, but the performance of the entire economic system may be impaired.

"he efficiency of financial market how ever, depends on the existence of active and efficient financial intermediaries in the system. Deposit taking

institutional investor is the important financial intermediaries involved in the

task of allocating assets. ' tructural changes in the financial market have

ind uced a reve rse tr end in financia l inte rmed ia tio n, i .e. financial

disintermediation, in which the central role of banking is being taken over by

investment institutions and institutional investors. "he shift from a credit9

based system to a financial has initiated the process of disintermediation, andcapital market based factors like insurance, pension funds and mutual funds

are increasingly playing the central role.

"he reforms have successfully dismantled the entry barriers, with the result

that today there are domestic and foreign financial institutions, like mutual

funds, broking firms and insurance companies, operating in the Indian market.

"he introduction of capital ade;uacy norms, prudential regulation and world

class regulatory mechanisms to protect the interest of investor, besides the

strict re;uirement of disclosure, have given a boost to the confidence of

domestic and foreign investors. "he Indian economy has slowly integrated

itself with the global economy and financial market.


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:;at i+ a


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'(0I 4egulations re;uire that at least two thirds of the directors of trustee company or

board of trustees must be independent i.e. they should not be associated with the

sponsors. #lso, >? of the directors of # - must be independent. #ll mutual funds are

re;uired to be registered with '(0I before they launch any scheme. 6owever, !nit "rust

of India


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the reason that foreign companies compete with one another in setting up insurance and

mutual fund business units in India. "he sheer magnitude of the population of educated

white collar employees provides unlimited scope for development of utual %und

0usiness in India.

-.). ! 'ene>it+ o>


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-. %o>e++ional anagement

"he investor avails of the services of experienced and skilled professionals who are

backed by a dedicated investment research team which analyses the performance

and prospects of companies and selects suitable investments to achieve the

objectives of the scheme .

/. Di e%+i>ication

utual %unds invest in a number of companies across a broad cross9section of

industries and sectors. "his diversification reduces the risk because seldom do all

stocks decline at the same time and in the same proportion. 7ou achieve this

diversification through a utual %und with far less money than you can do on your

own.

. Con enientAdmini+t%ation

Investing n in a utual %und reduces paperwork and helps you avoid many

problems such as bad deliveries, delayed payments and unnecessary follow up with

brokers and companies. utual %unds save your time and make investing easy and

convenient.

). Ret


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In open9ended schemes, you can get your money back promptly at net asset value

related prices from the utual %und itself. 5ith close9ended schemes, you can sell

your units on a stock exchange at the prevailing market price or avail of the facility

of direct repurchase at + related prices which some close9ended and interval

schemes offer you periodically.

6. T%an+$a%enc#

7ou get regular information on the value of your investment in addition to disclosure

on the specific investments made by your scheme, the proportion invested in each

class of assets and the fund managerCs investment strategy and outlook.

4. Fle i ilit#

"hrough features such as regular investment plans, regular withdrawal plans and

dividend reinvestment plans, you can systematically invest or withdraw funds

according to your needs and convenience.

9. C;oice o> *c;eme+

utual %unds offer a family of schemes to suit your varying needs over a lifetime.

-7. :ell Reg


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#ll investments whether in shares, debentures or deposits involve risk share value

may go down depending upon the performance of the company, the industry, state

of capital market and the economy: generally, however longer the term, lesser the

risk: companies may default in payment of interestEprincipal on their depositsEbonds

debentures: the rate of interest on investment may fall short of the rate of inflation

reducing the purchasing power.

5hile risk cannot be eliminated, skillful management can minimiFe risk. utual fund

helps to reduce risk through diversification and professional management. "he

experience and expertise of utual %und managers in selecting fundamentally

sound securities and timing their purchases and sales help them to build a

diversified portfolio that minimiFe risk and maximiFes returns.

1*. Ta 'ene>it+

"he incomes under utual %unds are much more "ax efficient than any fixed

income security due to the following benefits 9

'ection G>$ of the income "ax #ct ,1H31 enables tax free income up to rs

1 >>> and dividends from % s are eligible for this benefit.

5hen you invest for over a year, the tax payable on encashment is $ong

term -apitals gains tax at *>?. nce also get an indexation benefit which

has been approximately G? per year. "his reduces the taxable income and

thus decreases the tax liability.

"here is also an opportunity to set off capital losses against gains from

income schemes.


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%ull exemption from capital gains tax as it comes under 'ection /(#E(0 of

the income tax #ct.

ne has to pay tax only when he encash units, but have to pay tax on the

interest earned on other debt instruments every year on an accrual basis,

even though he receives the interest later. "his generates higher post tax

returns compared to other debt instruments.

"ax is just like a monster that frightens a number of individuals through out the

nation. "here are just tow way to fight with this monater

. -oncealEDepress Income

. ake tax efficient investments.

)erhaps the second option is far better than the first as it gives the peace of

mind together with a feeling that one is a responsible citiFen of the nation. 5ith

increasing amount of awareness that is taking birth in the minds of investors,

mutual fund has become cynosure of the eye of the several investors.

"he taxes available are two kinds

. "o the mutual fund9 as explained below in &o 1

. "o the Investor9 as explained below in &o *

-.


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. utual fund is fully exempted from the tax under 'ection1>


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Lowe% co+t

It is a lower cost of investment as compare to other mode of investment option in the

market. 6ere the investor can invest a minimum of 4s >> in the scheme of ($'' income g%o


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O'0ECTI1E OF THE *TUD2

Indian financial system has been expiring the vast effect of globaliFation i.e.

drastic interest rate cut, political disturbances, security scam etc have scattered thecommon investor s perception in selecting various investment portfolio. ost of the

security holders have lost their confidence in newly come9up corporate sectors for

investment. $ooking to the situation, it is ;uite encouraging to analyFe how the 6D%-

utual %und able to trap the deposits by introducing various schemes and how it protects

the interest of the investors.

"he main study is based on the performance and analysis of various schemes

with reference to 6D%- utual %und that is a leading mutual fund industry in India.

"he total performance analysis of financial instruments with reference to the

6D%- utual %und has got objectives. "his are as follows 9

"o know the performance of the different schemes.

"he comparative study of 6D%- utual %und with other mutual funds.

"o know the investment pattern of the investors in different schemes.

"he benefits made from the investment on the different schemes.

"o know the ranking of the 6D%- utual %und 'chemes.

"o know the diversify portfolio of 6D%- utual %und.

"o know the service which 6D%- utual %und is providing to its

investors with compare to other mutual fund

-6#)"(4


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A'OUT HDFC UTUAL FUND

1. 567 6D%- !"!#$ %!&D

*. ') &' 4'

. "4!'"((

/. #5#4D'


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3.- ! :;# HDFC >e%

5e believe, that, by giving the investor long9term benefits, we have to constantly review

the markets for new trends, to identify new growth sectors and share this knowledge with

our investors in the form of product offerings. 5e have come up with various products

across asset and risk categories to enable investors to invest in line with their investment

objectives and risk taking capacity. 0esides, we also offer )ortfolio anagement'ervices.


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O


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*tanda%d Li>e In e+tment+ Limited. "he 'tandard $ife #ssurance -ompany wasestablished in 1G* and has considerable experience in global financial markets. "he

company was present in the Indian life insurance market from 1G/J to 1H G when

agencies were set up in Bolkata and umbai. "he company re9entered the Indian market

in 1HH , when an agreement was signed with 6D%- to launch an insurance joint venture.

n #pril *>>3, the 0oard of "he 'tandard $ife #ssurance -ompany recommended that it

should demutualise and 'tandard $ife plc float on the $ondon 'tock (xchange. #t a

'pecial 2eneral eeting held in ay voting members overwhelmingly voted in favour of

this. "he -ourt of 'ession in 'cotland approved this in @une and 'tandard $ife plc floated

on the $ondon 'tock (xchange on 1>th @uly *>>3. 'tandard $ife Investments is a

leading asset management company, with approximately !'P *3J billion as at arch 1,

*>>G, of assets under management. "he company operates in the !B, -anada, 6ongBong, -hina, Borea, Ireland, )aris, 'ydney and the !'# to ensure it is able to form a

truly global investment view. In order to meet the different needs and risk profiles of its

clients, 'tandard $ife Investments $imited manages a diverse portfolio covering all of the

major markets world9wide, which includes a range of private and public e;uities,

government and company bonds, property investments and various derivative

instruments

3.3 ! TRU*TEE

6D%- "rustee -ompany $imited, a company incorporated under the -ompanies #ct,

1H 3 is the "rustee to 6D%- utual %und vide the "rust deed dated @une G, *>>>, as

amended from time to time. 6D%- "rustee -ompany $td is wholly owned subsidiary of

6D%-


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ICRA >J


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option of selling back the units to the mutual fund through periodic repurchase at +

related prices. '(0I 4egulations stipulate that at least one of the two exit routes is

provided to the investor i.e. either repurchase facility or through listing on stock

exchanges. "hese mutual funds schemes disclose + generally on weekly basis.

?c@*ecto% +$eci>ic >


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)./.- ! *2*TE ATIC IN1E*T ENT LAN ?*I @ 6D%- % 'I) is similar to a 4ecurring Deposit. (very month on a specified date an

amount you choose is invested in a mutual fund scheme of your choice. "he dates

currently available for 'I)s are the -+t, 5t;, -7t;, -5t;, /7t; and t;e /5t; of a month.7ou ll be amaFed to learn about the many benefits of investing through 6D%- % 'I).

'ene>it - 'ecome A Di+ci$lined In e+te% 0eing disciplined 9 It s the key to investing success. 5ith the 6D%- % 'ystematic

Investment )lan you commit an amount of your choice >> and in

multiples of 4s. 1>> thereofQ= to be invested every month in one of our schemes.

"hink of each 'I) payment as laying a brick. ne by one, you ll see them transform intoa building. 7ou ll see your investments accrue month after month. It s as simple as giving

at least 3 postdated monthly che;ues to us for a fixed amount in a scheme of your

choice. It s the perfect solution for irregular investors.

Q inimum amounts may differ for each 'cheme. )lease refer to 'I) (nrolment %orm for

details.

'ene>it / Reac; 2o


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?>o% -5 #ea%+@ ? G.>? 1>.>?

1/.3 1J./ *>.H

)777 J.* 11.J 1 .H 13.J3777 ./ G.G 1>./ 1*.

/777 .3 .G J.> G.

-777 1.G *.H . /.*

Q onthly instalments, compounded monthly, for a 1 9year period.

Di+claime% "he illustration above is merely indicative in nature and should not beconstrued as investment advice. It does not in any manner imply or suggest performance

of any 6D%- utual %und 'cheme


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ont; + #mount !nits #mount !nits

0an!7) H. / 1>>> 1>J.>>H1 1*>>> 1*G/.1>H1

Fe !7) H. HH 1>>> 1>3. H/

a%!7) G.1* 1>>> 1* .1>J*

A$%!7) G.J > 1>>> 11/.*G J

a#!7) G.>1* 1>>> 1*/.G1*G

0>> 11*.>//G

0* 1>>> 1>H.G33>

A 1>>> 1*>. 3H

*e$!7) J. 3G 1>>> 1 *.1

Oct!7) 3./3* 1>>> 1 /.J >H

No !7) 3.H 1 1>>> 1//.*JH

Dec!7) J.3>> 1>>> 1 1. JGH

Q+ as on the 1>th every month. "hese are assumed +s in a volatile market

Di+claime% "he illustration above is merely indicative in nature and should not beconstrued as investment advice. It does not in any manner imply or suggest performance



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0oth of them decide not to withdraw these investments till they turn >. #t >, &eha s

Investments have grown to 4s. /3,3G,*J Q whereas #rjun s investments have grown to

4s. 3,1J,>G/Q. &eha s small contributions to a 'I) and her decision to start investing

earlier than #rjun have made her wealthier by over 4s. 1> lakhs.

Q%igures based on 1>? p.a. interest compounded monthly.

Di+claime% "he"he illustration above is merely indicative in nature and should not beconstrued as investment advice. It does not in any manner imply or suggest performance



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)././ ! *2*TE ATIC TRAN*FER LAN ?*T @

'") refers to 'ystematic "ransfer )lan where in an investor invests a lump sum amount

in one scheme and regularly transfers t;e >i%+t mont; of each ;uarter.

"he Ent%# Load *t%


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).3 ! RODUCT* OF UTUAL FUND

E8UIT2 GRO:TH FUND

CHILDRENJ* GIFT FUND

LI8UID FUND

DE'T INCO E FUND


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E8UIT2 GRO:TH FUND DE'T INCO E FUNDHDFC G%owt; F


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HDFC Hig; Inte%e+t F


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6D%- 2rowth fund, an open9ended growth scheme, applies an investment

approach based on a set of well established but flexible principles that emphasiFe

the concept of sustainable economic earnings cash return on investment. "heobjective is to identify Kbusiness with superior growth prospects nd good

management at a reasonable priceL. "he five basic principles that serve the

foundation for this approach are as follows

%ocus on the long term

Investment confers proportionate ownership of the business

aintain a margin safety

aintain a balanced outlook on the market

Discipline approach to selling.

"he investment philosophy rests on a two9pronged approach. 3>9G>? of the

portfolio will aim to stay invested for most of the time in large cap stocks that

satisfy the above investment criteria. "his allocation to large cap stocks also

ensures greater li;uidity in the portfolio. *>9/>? of the portfolio will be invested in

companies of scale that are either large market share holder

'a+ic *c;eme In>o%mation,


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&ature of 'cheme pen (nded 2rowth 'cheme

Inception Date 'eptember 11, *>>>

ptionE)lan Dividend )lan, 2rowth )lan. "he Dividend )lan

offers Dividend )ayout and 4einvestment %acility.

lan name NA1 Date NA1 al>G *H.>*J>

G%owt; $lan 1G #ug *>>G G.H J>


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T;e a++et allocation ollow+

*%.no T#$e o> In+t% Net A++et@

No%malAllocation? o> Net A++et@

Ri+k %o>ile

- (;uity 8 (;uity relatedinstruments

G>91>> >> edium to high

/

Debt 'ecurities, oney

arket instruments 8-ash

>9*>

>> $ow to medium

Ret


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*e$tem e% --,/777

'ince Inception .>>> * .H3QQ 1/.//QQ

Q #bsolute 4eturns QQ -ompounded #nnualised 4eturns S '(&'(T

U Due to an over all sharp rise in the stock pricesV )ast performance may or may not be sustained in the future

*I Ret>.>> 3>,>>>.>> 3,>>>.>> 1*,>>>.>>

a%ket 1al


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profit or guarantee protection against a loss in a declining market. )lease refer 'I)

(nrolment %orm or contact nearest I'- for 'I) $oad 'tructure


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HDFC TO !/77 FUND

In e+tment O "ecti e

"he investment objective is to generate long term capital appreciation from a portfolio of

e;uity and e;uity linked instruments. "he investment portfolio for e;uity and e;uity linked

instruments will be primarily drawn from the companies in the 0'( *>> Index. %urther,the 'cheme may also invest in listed companies that would ;ualify to be in the top *>> by

market capitaliFation on the 0'( even though they may not be listed on the 0'( "his

includes participation in large I) s where in the market capitaliFation of the company

based on issue price would make the company a part of the top *>> companies listed on

the 0'( based on market capitaliFation

'a+ic *c;eme In>o%mation

Nat *c;eme O$en Ended G%owt; *c;eme

Ince$tion Date ctober 11, 1HH3

O$tion lan Dividend )lan,2rowth )lan. "he Dividend )lan offersDividend )ayout and 4einvestment %acility.

lan Name NA1 Date NA1 Amo>G G.*H

G%owt; lan 1G #ug *>>G 1*H. 3


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In e+tment atte%n

"he 'cheme may also invest upto * ? of net assets of the 'cheme in derivatives such

as %utures 8 ptions and such other derivative instruments as may be introduced fromtime to time for the purpose of hedging and portfolio balancing and and other uses as

may be permitted under the regulations and guidelines.

"he 'cheme may also invest a part of its corpus, not exceeding />? of its net assets, in

overseas markets in 2lobal Depository 4eceipts


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days=

*I Ret>.>> 1*>,>>>.>> 3>,>>>.>> 3,>>>.>> 1*,>>>.>>

a%ket 1al/ 11 , J .>* /1,331.*H H,G/ .>1

Ret


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HDFC E8UIT2 FUND

6D%- (;uity %und is an open9ended growth scheme, which aims to generatelong9term capital appreciation. "he scheme maintains a focused portfolio

predominantly of large cap stocks, through there is controlled exposure to mid

caps. "he schemes however a lways remain diversified across sectors .

oreover, the sectoral allocation is done keeping in mind to diversify across

sectors weakly co9related to each other to further reduce risk. "he underlying

theme while managing the scheme is to invest in businesses that are

sustainable and for good ;uality.

'a+ic *c;eme In>o%matio n

Nat *c;eme O$en Ended G%owt; *c;eme

Ince$tion Date @anuary >1, 1HH

O$tion lan Dividend )lan,2rowth )lan. "he Dividend )lan offersDividend )ayout and 4einvestment %acility.

lan Name NA1 Date NA1 Amo>G 3.13 >

G%owt; lan 1G #ug *>>G 1 3.J33>

In e+tment *t%ateg#In order to provide long term capital appreciation, the 'cheme will invest predominantly in

growth companies. -ompanies selected under this portfolio would as far as practicable

consist of medium to large siFed companies which


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are likely achieve above average growth than the industry: enjoy distinct competitive advantages, and

have superior financial strengths.

"he aim will be to build a portfolio, which represents a cross9section of the strong

growth companies in the prevailing market. In order to reduce the risk of volatility,

the 'cheme will diversify across major industries and economic sectors

In e+tment atte%n"he asset allocation under the 'cheme will be as follows

*%.No. A++et T#$e ? o> o%t>olio@ Ri+k %o>ile

- (;uities and (;uity 4elated Instruments G> 9 1>> edium to 6igh

/ Debt 8 oney arket Instruments > 9 *> $ow to edium

Investment in 'ecuritised debt, if undertaken, would not exceed *>? of the net assets of

the scheme.

"he 'cheme may also invest upto * ? of net assets of the 'cheme in derivatives such

as %utures 8 ptions and such other derivative instruments as may be introduced fromtime to time for the purpose of hedging and portfolio balancing and other uses as may be

permitted under the 4egulations.

"he 'cheme may also invest a part of its corpus, not exceeding />? of its net assets, in

overseas markets in 2lobal Depository 4eceipts


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composition.

&ot with standing anything stated above, subject to the regulations, the asset allocation

pattern indicated above may change from time to time, keeping in view marketconditions, market opportunities, applicable regulations and political and economic

factors. It may be clearly understood that the percentages stated above are only

indicative and are not absolute and that they can vary substantially depending upon the

perception of the # -, the intention being at all times to seek to protect the + of the

scheme. 'uch changes will be for short term and defensive considerations. )rovided

further and subject to the above, any change in the asset allocation affecting the

investment profile of the 'cheme and amounting to a change in the %undamental

#ttributes of the 'cheme shall be effected in accordance with sub9regulation . *QQ 1./JQQ

Decem e% /4,/776

$ast 'ix months 9 /.GGQ 9 H. GQ

0


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securities of companies engaged in or expected to benefit from growth and development of

infrastructure.

'a+ic *c;eme In>o%mation

Nat *c;eme Clo+e Ended EB%om t;e date o> allotment wit; aG G. G >

Di idend O$tion 1G #ug *>>G G. G >

In e+tment atte%n"he asset allocation under the respective )lans will be as follows

T#$e o> In+t%ile o> t;eIn+t%


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a%ket In+t%? of the net assets of the

'cheme. "he 'cheme may seek investment opportunity in %oreign 'ecurities


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days=

Q #bsolute 4eturns QQ -ompounded #nnualised 4eturns S '8) -&T >>

U Due to an overall sharp rise in the stock prices

V )ast performance may or may not be sustained in the future

FC %o%mation

Nat *c;eme O$en Ended 'alanced *c;eme

Ince$tion Date %ebruary >1, 1HH/

O$tion lan Dividend )lan, 2rowth )lan. "he Dividend )lan offersDividend )ayout and 4einvestment %acility.

Ret


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Decem e% /4,/776

$ast 1G days 13>.3GJ> 9*H.GGQ 9**.JQ

0


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%und anager

%. ea+ant 0ain

%. an and Ladd 9 Dedicated %und anager 9 %oreign 'ecurities

In e+tment atte%n

"he following table provides the asset allocation of the 'chemeCs portfolio.

"he asset allocation under the respective )lans will be as follows

Reno. T#$e o> In+t% Net A++et+@

Ri+k %o>ile

- (;uities 8 (;uity related instruments /> 9 J ? edium to 6igh

/ Debt 'ecurities, oney arketinstruments? $ow to edium


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HDFC Ca$ital '


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Date

Di idend lan 1G #ug

*>>G

**.>J

G%owt; lan 1G #ug

*>>G

3H.H1G

In e+tment atte%n

"he asset allocation under the 'cheme will be as follows

*%.No. A++et T#$e ? o> o%t>olio@ Ri+k %o>ile

- (;uities and (;uity 4elated Instruments !pto 1>>? edium to 6igh

/ Debt 8 oney arket Instruments &ot more than *>? $ow to edium

Investment in 'ecuritiFed debt, if undertaken, would not exceed *>? of the net

assets of the scheme. "he 'cheme may also invest upto * ? of net assets of the

'cheme in derivatives such as %utures 8 ptions and such other derivative

instruments as may be introduced from time to time for the purpose of hedgingand portfolio balancing and other uses as may be permitted under regulations and

guidelines.

"he 'cheme may also invest a part of its corpus, not exceeding />? of its net

assets, in overseas markets in 2lobal Depository 4eceipts


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overseas e;uity, bonds and mutual funds and such other instruments as may be

allowed under the 4egulations from time to time. #lso refer to the 'ection on

)olicy on off9shore Investments by the 'cheme.>> 1*>,>>>.>> 3>,>>>.>> 3,>>>.>> 1*,>>>.>>

a%ket 1alG 1> , /H./> J, H. / H,*/*.13

Ret


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M Ret. .>GQQ 1./JQQ

Decem e% /4, /776 $ast 'ix months .1* > 9 G.H3Q 9 H. GQ

0>

V )ast performance may or may not be sustained in the future

'enc;ma%k ! * & CNK 577 Disclaimer"he above investment simulation is for illustrative purposes only and should not be

construed as a promise on minimum returns and safeguard of capital. "he # - E utual

%und is not guaranteeing or promising or forecasting any returns. 'I) does not assure a

profit or guarantee protection against a loss in a declining market. )lease refer 'I)

(nrolment %orm or contact nearest I'- for 'I) $oad 'tructure.


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-6#)"(4

%or the purpose of fulfillment of masters degree in business administration i had

undertaken HDFC!m


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I had chosen the HDFC!m


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"he largest amount of investment was made by r. D #0ID ,an amount of 1, >,>>> , in

the scheme 6D%-9 e;uity fund for a duration of years.

ther investors were

NA E In e+tment t#$e

Amo> %!&D 1 7(#4

3. DE'ENDRA NATH AUL One time -,77,777 6D%- (O!I"7 %!&D 7(#4

). NAS US SA A *I -,777 6D%- 24 5"6 %!&D 1 7(#4

5. D A'ID ONE TI E -,57,777 6D%- (O!I"7 %!&D * 7(#4

. NI*HIT HE ANI *I /,777 6D%- 24 5"6 %!&D 1 7(4#

6. D% NE2AS AH ED *I -,777 6D%- 24 5"6 %!&D 1 7(4#

4. HALID *ADAT *I /,777 6D%- " ) *>> %!&D 1 7(#4

9. CHANDU LAL GU TA *I -,777 6D%- " ) *>> %!&D 1 7(#4

-7. NI*HIT HE ANI ONE TI E 57,777 6D%- (O!I"7 %!D * 7(#4

--. D ER:ES ALA *I -,777 6D%- 0#$#&-(D %!&D 1 7(#4

-/. 0U'AIR HAN *I -,777 6D%- 0#$#&-(D %!&D 1 7(#4

-3. D T OHANT2 *I -,777 6D%- 24 5"6 %!&D 1 7(#4-). RA A*H 0HA *I -,777 6D%- " ) *>> %!&D 1 7(#4

-5. HALID *ADAT One time -,77,777 6D%- (O!I"7 %!&D 7(#4

- . A IT DAGA *I /,777 6D%- 24 5"6 %!&D 1 7(#4

-6. 1I RANT GU TA *I -,777 6D%- 24 5"6 %!&D * 7(#4


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-4. RA0E*H U AR *I -,777 6D%- 24 5"6 %!&D 1 7(4#

-9. D A*IF *I -,777 6D%- 24 5"6 %!&D 1 7(4#

/7. ASAR HAN *I -,777 6D%- " ) *>> %!&D 1 7(#4

/-. 'I*:A0IT RAI *I -,777 6D%- " ) *>> %!&D 1 7(#4

//. NARENDRA NATH AUL *I -,777 6D%- 24 5"6 %!&D * 7(#4

/3. HAR REET AUR *I -,777 6D%- 0#$#&-(D %!&D 1 7(#4

/). *O A AGAR:AL *I -,777 6D%- (O!I"7 %!D 1 7(#4

During the training period I managed to convince people to make investment in 6dfcutual funds. "he total amount of transaction I provided was about 4s J,>>,>>>


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CHA TER

ETHODOLOG2

OF

THE *TUD2

1. 4('(#4-6 ("6 D $ 27*. ' !4-(' % D#"#

- $$(-"I &. 67) "6('I' % "6(

'"!D7/. D#"# - $$(-"I & 8

#$7'I'

.- ! Re+ea%c; et;odolog#

'ince the study undertaken by me is related to the study of mutual fund in India,

the means adopted for collection of various facts and data were in the form of personal

observation, officials documents, and directly interacting with the officers concerned and

also directly interacting with the existing customers as well as new customer formed. It

was an exploratory research. 5ork is mainly emphasiFed on the primary data. )rimary


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data are gathered form prescribed ;uestionnaire and by personal interview and the

secondary data are collected from different books and magaFines.

./ ! *o Data collection

"here are two sources of data collection. "hey are

-. RI AR2 DATA *OURCE/. *ECONDAR2 DATA *OURCE

"he secondary data are those, which have already been collected by someone else

thorough 0ooks, Internet, "elevision, journals, agaFines, etc. n the other hand primary

data does not exist here. "he researcher has to gather primary data afresh for the

specific study undertaken by him. )rimary data has been collected here by ;uestionnaire

method and personal interview method is followed. )rimary sources such as Interviews,

bservation, and attending training and development classes. 'econdary sources such

as 0ooklets, onthly journal, agaFines, fficial files etc.

.3 ! H2 OTHE*I* OF THE *TUD2

%or doing the dissertation topic Kperformance of mutual fund analysis I took the

hypothesis of certain groups. I divide the total population on the basis of their age,

income, gender, occupation and status.


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ale jobholders within the age group of */9/>.

%emale jobholders within the age group of */9/>.

ale jobholders above the age />.

%emale jobholders above the age />. Individual having the income in the range of 1lkh9 lkh per annum.

Individual having the income above lkh per annum.

In 4ajasthan i.e. rural area it is still a new concept so it will take some more time to really

penetrate into this market apart from people who are 6&I s though these people are

given more emphasis by all the utual funds and distribution channels. 5ith the

introduction of 'I) s the industry has created some options clear for retail investors to

enter this market. y survey says that it the awareness level that is playing acting as anobstacle in the growth of utual fund Industry in 4ajasthan as a whole. )eople in

@halawar are now opening up and interested in looking forward for certified investment

planners to help them designing their investment portfolio. 4ajasthan as a market was

not that efficient few years back, but now with lot of multinational companies and other

reputed companies coming down, the 4ajasthan market is slowly picking up. %or mutual

funds it is one of the emerging markets that can be trapped form its developing stage and

though people of rural areas prefer oderate risk they can easily accept mutual funds.

utual fund Industry is delivering a splendid performance and will of course continue in

coming future. 0ut that can be only possible as the distribution channels like Barvy, 0ajaj

finance and 0anks i.e. -iti 0ank, 6D%- 0ank, I-I-I 0ank and 'tandard -hartered 0ank

along with all #sset anagement -ompany.

.) ! Data Collection & Data Anal#+i+


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No o> %e+$ondent ! /77

ale ! -35

Female ! 5

N %e+$ondent+ Acco%ding to age g%o to :; :; to ?; ?; to ;; ;; 7 aboe

&e!pondent


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)7 to 57 )7

57 a o e /5

T;e +


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0ank %D s

utual funds

Insurance

INFERENCE

Acco%ding to t;e in e+to%+ in ota, 33 o> in e+to%+ $%e>e% to de$o+itt;e%e mone# in ank FDJ+. :;e%e a+ 4 o> t;e in e+to%+ want to in e+t in $o+tal+c;eme, ) in go e%nment +ece% m


71/87

oderate risk

"ax benefits

6assle free

)ast performance

5ell regulated

&o idea

.

INFRENCE

Acco%ding to $eo$le o> ota t;e# att%act wit; $a+t $e%>o%mance o> t;ecom$an# i> com$an# $a+t %eco%d+ i+ good t;en t;e# inte%e+ted to in e+t. A>te% t;at$eo$le att%act wit; ta ene>it t;en %et


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3. e%centage o> enti%e in e+tment incl?

> to G>?

G>? above

INFRENCE


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'# t;i+ we come to know t;at mo+t o> t;e $eo$le o% mo% /7 to57in e+tment in


74/87

>i e >


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0ank %D, 'avings

Insurance

utual funds

(;uity market

2ovt. securities

4eal estate

)ostal savings, %D

INFRENCE

Acco%ding to m# +o%e 5 #ea% mo+t o> t;e $eo$le?--3@ o> ota cit#in e+ted ;i+ mone# in in+


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INFERENCE

In t;e cit# like ota in etween t;e age g%o


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INFERENCE

Acco%ding to t;e +


78/87


79/87

CHA TER 6

8UE*TIONARE

Ouestionnaire

lea+e >ill 9 >

W >9aboveX

Occ


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-. :;at a%e t;e In e+tment A en=

)ostal schemes #o< ;a e in e+ted in ? G>? above


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5. :;at we%e #oe%ence@4eturns 4isk factors

$ock9in period past performance

"ax benefits


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9. 2o< elie e in Z

6igh risk, 6igh returns

oderate risk, moderate returns

$ow risk, low returns

-7. Ha e #o< een e e% a$$%oac;ed # a Ce%ti>ied In e+tment Financial lanne%=7es &o

--. :oo% #o=

7es &o


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CHA TER 4

FINDING, RECO ENDATION,

&

CONCLU*ION

FINDING*

In India utual fund Industry has seen Dramatic improvements in Ouality as well as

;uality of products and services offering over the past decade, but the industry has

witnessed growth in the last 1> years considerably below potential. "he #sset under anagement have grown from about 4s. /J> billion in march 1HH to 4s. 1, /> billion in

#pril *>>/ billion till sep *>>G. "his

has mainly achieved due to collection through mutual fund I) s that has been

increasing due to the investors feeling that it is cheaper in its I) stage on account of its

4s. 1> +.

"here has been a strong appreciation in e;uities in comparison to the debt market, whichhas shown a downward trend last year. #nd in turn id9cap and diversified funds have

delivered the highest in comparison to other funds. #s the Indian economy is showing a

growing trend with 2D) more than 3? and expected to show G? and Indian household

saving being */? of the entire 2D). "here is a strong growth potential of utual fund

industry in India.

In 4ajesthan i.e. rural area it is still a new concept so it will take some more time to really

penetrate into this market apart from people who are 6&I s though these people are

given more emphasis by all the utual funds and distribution channels. 5ith the

introduction of 'I) s the industry has created some options clear for retail investors to


84/87

enter this market. y survey says that it the awareness level that is playing acting as an

obstacle in the growth of utual fund Industry in 4ajesthan as a whole.

*ome o> t;e a"o% Finding+

1. It is found that 6D%- is a favorable utual %und.

*. "he basis objective behind investments are mainly long9term capital appreciation,

current income 8 to some extent tax benefits.

. "he performance of 6D%- -ore 8 'atellite 8 6D%- "op *>> %und is very good.

/. It is seen that the investment in growth fund is very high. 0ecause the scope of

income and capital appreciation in the long term.

. It is observed that the driving aspects of investments in mutual fund are safety,

fund performance, 'ervice, $i;uidity, return 8 tax benefits.

3. "he type of investment plan that most investor s prefer is to get principal safety at

all time with low returns rather than high return with no safety.

J. 6D%- utual %und does not provide Mmonthly income scheme which other

mutual funds have and performance is very appreciable.

G. %und anagers have suggested 6D%- prudence ,6D%- "ax'aver , 6D%- (;uity

for investment , %or the top .

H. 6D%- )rudence is performing good with comparison to the prudence fund of any

other mutual fund house.

1>.#t this period of time when market condition is not so good, it is better for investors

to invest through 'ystamatic Investment plan. 5hich reduces the market risk.


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RECO ENDATION

6D%- utual %und is one of the largest mutual funds and well9established fund house in

the country with consistent and above average fund performance across categories since

its incorporation on December 1>,1HHH."he single most important factor that drives

6D%- utual %und is its belief to give the investor the chance to profitably invest in the

financial market, without constantly worrying about the market swings.

*ome ma"o% %ecommendation

-@%und managers should continuous Investor awareness )rograms to makethe investors aware of technicalities of fund management and the return

aspects.

/@ #gents, 'ervice personnel must be able to give correct and timelyinformation about + and the return on different schemes.

3@onthly income scheme should be introduced.)@ 'cheme should be offered as per the needs and the re;uirement of the

industries.5@"he regulatory norms provided by the regulatory authorities like '(0I are

re;uired to be known to all including investors.


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CONCLU*ION

"he global financial market has transformed from 'eller s market to 0uyer s market with

liberaliFation, 2lobaliFations and privatiFation. "he Indian mutual fund market has also

become global when foreign funds entered, they came up with probably best marketing

strategies to beat Indian giants like 0I4$#, 6D%-, and I-I-I have come up with

aggressive strategies to beat the foreign funds. &ow the cutthroat competition goes on

and on.

6D%- utual funds have rewarded investors with hand some returns. "he good news is

that this is poised to become a trend. "he mutual funds have strengthened their

distribution networks, become more transparent and investor friendly and are rewarding

investors. "he mutual fund is finally, proving itself as a vehicle of safety for investments.

0ut it is still the fund manager s investment philosophy that makes the difference

between the winner and the losers.

-areful market analysis, consumer segmentation, identification of investor needs, service

designing are to be carried out for the successful implementation of different schemes by

mutual fund organiFations. 4egulatory measures by '(0I should be clearly explained to

the investors. )ositioning of the schemes and their branding will help a lot for growth of

the industry. -reativity and innovation are the means of marketing in the days to come for

Indian mutual fund market.


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-6#)"(4 H

'I'LIOGRA H2

AGASINE*

INDIA TODA2

'U*INE** :ORLD

:E' *ITE*

:::.HDFCFUND.CO

http EEwww.hdfcfund.comE#bout!sE

http EEwww.hdfcfund.comE)roductsE

:::.A FIINDIA.CO

http EEwww.amfiindia.comEshowhtml.aspA

pageRmfconceptS#

0OURNAL INTOUCH UTUALL2
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