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Culture Documents
This is to certify that Miss. Parneet Kaur has done the Minor Research Project entitled
Comparative analysis of mutual fund of HDFC & ICIC under my supervision for
the degree of Master of Business Administration. The work done by her is a sole effort
and has not been submitted as or its part for any other degree.
DECLARATION
I, PARNEET KAUR here-by declare that the project report COMPARATIVE
ANALYSIS OF MUTUAL FUND OF HDFC & ICICI for the fulfillment of the
requirement of my course from AIM is an original work of mine and the data provided in
the study is authentic, to the best of my knowledge.
This study has not been submitted to any other Institution or University for award of any
other degree.
Parneet Kaur
Roll.No.95202239175
Parneet Kaur
PREFACE
Many individuals own mutual funds today. Indeed, the mutual fund industry
which reached $3.64 trillion in assets by 2009,comprises the bulk of many
investors financial assets, whether for retirement or taxable savings purposes .To a
large extent, mutual funds are the investment vehicle for the majority of house
holds in the India.
In the introductory chapter, I have consider the role of
mutual fund in todays investing environment, learn just how popular mutual
funds have become and consider why investors have chosen to put so much
money into funds. Clearly, mutual funds are a major financial asset for numerous
investors, and in many ways they play the dominant role in todays investing
world for millions of house holds.
I have also told about the basics of mutual funds,
defining terms and discussing the mechanics about how funds work. I have also
considered other alternatives .I have mainly focused up on the study that which
companys mutual investments are mostly preferable by investors. Today
investors are becoming rational & they see all the parameters before investing .I
had also reviewed the types of mutual funds, structure of mutual funds and their
current scenario.
The over all objective of my study on this project is to know
which company provides better investment opportunities from HDFC & ICICI
and make the investors to be able to take better decisions .Of course, as every
study needs, Id adopted an objective view of over all situation that examines both
sides of the issue situated in HDFC &ICICI.
S.NO.
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Contents
Introduction To Topic
Introduction to Companies
Page No.
7
11
Review of literature
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Need/Scope of Study
0bjective of the study
Research Methodology
Analysis
Findings
Limitations
Recommendations
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Conclusion
Bibliography
Annexure
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Introduct
ion to
Topic
What is mean by mutual fund?
Mutual funds are pools of money that are managed by an investment company. They
offer investors a variety of goals, depending on the fund and its investment charter. Some
funds, for example, seek to generate income on a regular basis. Others seek to preserve an
investor's money. Still others seek to invest in companies that are growing at a rapid pace.
Funds can impose a sales charge, or load, on investors when they buy or sell shares.
Many funds these days are no load and impose no sales charge. Mutual funds are
investment companies regulated by the Investment Company Act of 1940. Related: openend fund, closed-end fund.
Concept of mutual funds
A mutual fund is a trust that pools the savings of a no. of investors, who share a common
financial goal. The money thus collected is then invested in capital market instruments
such as shares, debentures and other securities. The income earned through these
investments and the capital appreciations realized are shared by its unit holders in
proportion to the number of units owned by them. Thus a mutual fund is the most suitable
investment for the common man as it offers an opportunity to invest in diversified,
professionally managed basket of securities at a relatively low cost.
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Historical Aspect
Mutual fund firstly was established in 1822 in the form of Society General De
Belguique. It mainly gains the progress in Switzerland & little in franc and Germany in
its initial days. The first investment trust The foreign and colonial govt. trust Was
founded in London in 1868.
Types of
Mutual Fund
Structure
Open Ended
Investment
objective
Special schemes
Growth
Close
Income
Internal
Balanced
Industry specific
Specific
Index schemes
Sector schemes
Money
Market
Diversification.
Professional Management.
Liquidity (mainly in case of opened mutual funds).
Regulatory.
Convenience.
Low cost.
Reduction of transaction cost.
Diverse returns.
Advantages to Industrial concern.
Tax relief.
Attract foreign Capital.
Reduction / Diversification of risk.
No guaranties.
Fees & Commission.
Taxes.
Management Risk.
Introductio
n to
Companies
HDFC mutual fund was set up on June 30, 2000 with two sponsors namely
Housing Development Finance Corporation ltd. and Standard Life Insurance ltd.
HDFC mutual fund came into existence on 10 Dec. 1999 and got approval from the
SEBI on 3rd July 2000.
Housing Development Finance Corporation Limited, more popularly known as
HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of
the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first
banks to receive an 'in principle' approval from RBI, for setting up a bank in the
private sector. The bank was incorporated with the name 'HDFC Bank Limited', with
its registered office in Mumbai. The following year, it started its operations as a
Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches
and over 3275 ATMs across India.
Products and Schemes of HDFC mutual fund
Equity funds.
Balanced funds.
Debt funds.
Liquid funds.
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Equity funds.
Balanced funds.
Debt funds.
Liquid funds.
Childrens gift fund
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12
Review
of
Literatur
e
COMPANY PROFILE
ICICI Bank is India's second-largest bank with total assets of about Rs. 1
trillion and a network of about 540 branches and offices and over 1,000
ATMs. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas
of investment banking, life and non-Banking , venture capital, asset
management and information technology. ICICI Bank's equity shares are
listed in India on stock exchanges at Chennai, Muzaffarnagar, Kolkata and
Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange
of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).
HDFC Banks exposure to market risk a function of its trading and asset
and liability management activities and its role as a financial intermediary
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in customer-related transactions. HDFC had tried its best in mutual fund sector. It has
grown up its market share in a meanwhile time. The objective of market risk management
is to minimize the impact of losses due to market risks on earning and equity capital.
Source:- www.sribd.com
www.artclenich.com
Need of
study
Scope of
study
Objectives
of study
Need of the study
The need of study arises for learning the variables available that distinguish the
mutual fund of two companies.
To know the risk & return associated with mutual fund.
To chose best company for mutual investment between HDFC & ICICI.
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Objectives
.
15
Research
Methodol
ogy
Research refers to search for knowledge. One can also define research as a scientific and
systematic search for pertinent information on a specific topic. It is an art of scientific
investigation.
Research Methodology:It is the way to systematically solve a problem. The methodology adopted in this
study is explained below: Research Design
A. Problem Defining:
In a competitive situation with multiple mutual funds
operating in Indian market, it is necessary to know about the performance
of different mutual funds as the performance of mutual fund decides about
the future of Mutual Fund Company. In this study my focus is upon
performance of investors regarding HDFC &ICICI. This is my problem to
be studied for research.
B. Literature Survey:
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17
18
An
aly
sis
1. Do you invest in mutual fund?
.
YES
100
NO
19
Interpretation:All the candidates who are asked to fill the questionnaire have invested in mutual fund.
HDFC
65
ICICI
35
Reliance
SBI
LIC
Kotak Mahindra
Others
20
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 N
HDFC
ICICI
Total
Expected N
Residual
65
50.0
15.0
35
50.0
-15.0
100
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Test Statistics
VAR00001
9.000a
Chi-Square
df
Asymp. Sig.
.003
12
35-45
60
More than 45
20
22
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.
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One-Sample Statistics
Mean
Std. Deviation
VAR00001
100
2.9200
.80000
.08000
One-Sample Test
Test Value = 0
36.500
df
.000
2.92000
Lower
2.7613
Upper
3.0787
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1 lakh
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.
25
VAR00001
Observed N
1 lakh
Expected N
Residual
25.0
-17.0
2-4 lakh
12
25.0
-13.0
4-5 lakh
60
25.0
35.0
more than 5
20
25.0
-5.0
Total
100
Test Statistics
VAR00001
68.320a
Chi-Square
df
Asymp. Sig.
.000
5. From where you come to know about this companys mutual fund schemes?
35
40
Company employee
15
Others
10
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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 N
Expected N
Residual
35
25.0
10.0
40
25.0
15.0
Company employee
15
25.0
-10.0
Others
10
25.0
-15.0
Total
100
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VAR00001
Observed N
Expected N
Residual
35
25.0
10.0
40
25.0
15.0
Company employee
15
25.0
-10.0
Others
10
25.0
-15.0
Total
100
0-1 year
15
1-2 year
35
2-4year
30
more than 4
20
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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
Test Statistics
Observed N
Expected N
VAR00001
0-1 year
Chi-Square
15
25.0
1-2 year
df
35
25.0
Asymp. Sig.
2-4 year
30
25.0
Residual
10.000a
3 10.0
.019
a. 0 cells
(.0%) have expected frequencies less than 5. The
more than
4
20
25.0
minimum expected cell frequency is 25.0.
Total
100
-10.0
5.0
-5.0
29
Highly satisfied
15
Satisfied
35
Neutral
30
Dissatisfied
15
Highly Dissatisfied
5
30
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 N
Expected N
Residual
highly satisfied
15
20.0
-5.0
satisfied
35
20.0
15.0
neutral
30
20.0
10.0
dissatisfied
15
20.0
-5.0
20.0
-15.0
highly dissatisfied
Total
100
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Test Statistics
VAR00002
30.000a
Chi-Square
df
8. What is your
Asymp. Sig.
.000
risk profile?
Innovator
20
Moderate
65
Risk adverse
15
32
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.
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VAR00002
Observed N
innovator
moderate
risk adverse
Total
Expected N
Residual
20
33.3
-13.3
65
33.3
31.7
15
33.3
-18.3
100
Test Statistics
VAR00002
45.500a
Chi-Square
df
Asymp. Sig.
.000
9. What you feel about the company norms, documentation & formalities?
Highly Satisfied
15
Satisfied
25
Neutral
40
Dissatisfied
15
Highly dissatisfied
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VAR00002
Observed N
Residual
highly satisfied
15
20.0
-5.0
satisfied
25
20.0
5.0
neutral
40
20.0
20.0
dissatisfied
15
20.0
-5.0
20.0
-15.0
highly dissatisfied
Total
5%
15%
Expected N
100
Highly Satisfied
15%
Satisfied
Neutral
25%
Dissatisfied
40%
Highly
Dissatisfied
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.
35
Test Statistics
VAR00002
35.000a
Chi-Square
df
Asymp. Sig.
.000
68
36
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 N
HDFC
ICICI
Total
Expected N
Residual
68
50.0
18.0
32
50.0
-18.0
100
37
Test Statistics
VAR00001
Chi-Square
df
Asymp. Sig.
12.960a
1
.000
11. Would you like to exchange your investment with one another between
HDFC & ICICI?
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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.
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VAR00001
Observed N
Yes
No
Total
Expected N
Residual
15
50.0
-35.0
85
50.0
35.0
100
Test Statistics
VAR00001
Chi-Square
49.000a
df
Asymp. Sig.
1
.000
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Findings
Limitatio
ns
Recomm
endations
Findings: - In my research I have founded following things:Conclusi
on have more faith HDFCs mutual fund.
Investors
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.
to
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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.
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Bibli
ogra
phy
44
45
Annexure
Ann
exur
e
Name ________________________ Age _________
Adress_____________________________________
Pin ___________ Sex _________ Phone _________
1. Do you invest in mutual fund?
Yes
No
ICICI
Reliance
LIC
SBI
Kotak Mahindra
Others
Please specify
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25-35
above 45
2 - 4lakh
4-5 lakh
more than 5
5. From where you come to know about this companys mutual fund schemes?
Family members & relatives
Friends & peers
Companyemplooyes
Others
Please specify
1-2 year
2-4year
more than 4 .
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Innovator
Moderator
Risk adverse
9. What you feel about the company norms, documentation & formalities?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
10. What you say which provides better returns?
HDFC
ICICI
11. Would you like to exchange your investment with one another between HDFC &
ICICI?
YES
NO
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