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BONOFIDE CERTIFICATE

This is to certify that the Report on Project Work titled “RISK RETURN ANALYSIS AND
COMPARATIVE STUDY OF MUTUAL FUNDS” for HDFC Asset Management Company Ltd.
is a bonafide record of the work done by

Somesh Behere

studying in Master of Business Administration in Vidhyasagar Institute of Management ,Bhopal

during the year 2008-10.

Project Viva-Voce held on.....................

Internal examiner External examiner

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 DECLARATION

I hereby declare that the projects entitled “ A Comparative

study on the performance between two sectorial funds in Jamshedpur ”
conducted at HDFC MUTUAL FUND has been prepared by me during the
academic year 2009-10 under the able guidance of my faculty guide Prof.
GOPAL PRUSETH and my project mentor Mr. SHAILESH KUMAR BANSAL.

I also declare that this project is the result of my effort

and has not been submitted to any other University or Institution for the
award of any degree, or personal favors whatsoever. All the details and
analysis provided in the report hold true to the best of my knowledge.

GOPAL KUMAR AGARWAL

Date: June 2009

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 PREFACE

The Summer Internship Program forms an important component of education. It is

an attempt to bridge the gap between the academic institution and the corporate
world. It provides us an opportunity to apply the concepts learnt in real life
situations.

The perfect combination of Project and OJT help us in exploring our skills and
capabilities. This internship program makes a mark of hard work, sincerity,
knowledge and ethics on the host organization. It would also be a great learning
experience since it enables us to apply theory to practice and observe and learn the
current trends in the market.

It provides an opportunity for us to satisfy our inquisitiveness about corporate,

provides exposure to technical skills, and helps us to acquire social skills by being
in constant interaction with the professionals of other organizations.

It helps us in developing a network, which will be useful in enhancing in career

prospects. This will help to gain a deeper understanding of the work, culture,
deadlines, pressures etc. of an organization.

Thus, it helps to develop the qualities of a Manager by involving teamwork,

goal orientation and managing interpersonal relationships and by creating
awareness about strengths and weaknesses in the work environment.

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 Acknowledgement

I express my sincere thanks to my project guide, Mr. Himanshu Vyas Designation,

Deptt. Finance, for guiding 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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 Table of Contents

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 EXECUTIVE SUMMARY

The significant outcome of the government policy of liberalization in industrial

and financial sector has been the development of new financial instruments.
These new instruments are expected to impart greater competitiveness
flexibility and efficiency to the financial sector. Growth and development of
various mutual fund products in Indian capital market has proved to be one
of the most catalytic instruments in generating momentous investment
growth in the capital market. There is a substantial growth in the mutual fund
market due to high level of precision in the design and marketing of variety
of mutual fund products by banks and other financial institution providing
growth, liquidity and return. In this context, prioritization, preference building
and close monitoring of mutual funds are essentials for fund managers to
market this the strongest and most preferred instrument in Indian capital
market for the coming years. With the decline in the bank interest rates,
frequent fluctuations in the secondary market and the inherent attitude of
Indian small investors to avoid risk, it is important on the part of fund
managers and mutual fund product designers to combine various elements
of liquidity, return and security in making mutual fund products the best
possible alternative for the small investors in Indian market .There are
various parameters which an investor should consider before investing in
mutual funds. The comparative analysis between two mutual fund will help
the investor to take appropriate decision before investing in mutual funds.

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 INTRODUCTION

A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities.
The income earned through these investments and the capital appreciations
realized are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fundi’s the most suitable investment for the
common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. The flow
chart below describes broadly the working of a Mutual Fund A Mutual Fund
is a body corporate registered with the Securities and Exchange Board of
India (SEBI) that pools up the money from individual/corporate investors and
invests the same on behalf of the investors/unit holders, in Equity shares,
Government securities, Bonds, Call Money Markets etc., and distributes the
profits. In the other words, a Mutual Fund allows investors to indirectly take
a position in a basket of assets. Mutual Fund is a mechanism for pooling the
resources by issuing units to the investors and investing funds in securities
in accordance with objectives as disclosed in offer document. Investments
insecurities are spread among a wide cross-section of industries and sectors
thus the risk is reduced. Diversification reduces the risk because all stocks
may not move in the same direction in the same proportionate same time.
Investors of mutual funds are known as unit holders the investors in
proportion to their investments share the profits or losses. The mutual funds
normally come out with a number of schemes with different investment
objectives which are launched from time to time. A Mutual Fund is required
to be registered with Securities Exchange Board of India (SEBI) which
regulates securities markets before it can collect funds from the public.

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 ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the
organizational set up of a Mutual Fund:

Mutual Funds diversify their risk by holding a portfolio of instead of only one
asset. This is because by holding all your money in just one asset, the entire
fortunes of your portfolio depend on this one asset. By creating a portfolio of
a variety of assets, this risk is substantially reduced. Mutual Fund
investments are not totally risk free. In fact, investing in Mutual Funds
contains the same risk as investing in the markets, the only difference being
that due to professional management of funds the controllable risks are
substantially reduced. A very important risk involved in Mutual Fund
investments is the market risk. However, the company specific risks are
largely eliminated due to professional fund management.

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 CHARACTERISTICS OF A MUTUAL FUND

 A Mutual Fund actually belongs to the investors who have pooled their
funds. The ownership of the mutual fund is in the hands of the
Investors
 A Mutual Fund is managed by investment professional and other
Service providers, who earns a fee for their services, from the funds.

 The pool of Funds is invested in a portfolio of marketable investments.

 The value of the portfolio is updated every day.

 The investor’s share in the fund is denominated by “units”. The value

of the units changes with change in the portfolio value, every day. The
value of one unit of investment is called net asset value (NAV).

 The investment portfolio of the mutual fund is created according to the

stated Investment objectives of the Fund

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  How is a mutual fund set up?

A mutual fund is set up in the form of a trust, which has sponsor, trustees,
asset Management Company (AMC) and custodian. The trust is established
by a sponsor or more than one sponsor who is like promoter of a company.
The trustees of the mutual fund hold its property for the benefit of the unit
holders. Asset Management Company (AMC) approved by SEBI manages
the funds by making investments in various types of securities.

Custodian, who is registered with SEBI, holds the securities of various

schemes of the fund in its custody. The trustees are vested with the general
power of superintendence and direction over AMC. They monitor the
performance and compliance of SEBI Regulations by the mutual fund.

SEBI Regulations require 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. Also, 50% of the directors of AMC must be
independent. All mutual funds are required to be registered with SEBI before
they launch any scheme. However, Unit Trust of India (UTI) is not registered
with SEBI (as on January 15, 2002).

 What is Net Asset Value (NAV) of a scheme?

The performance of a particular scheme of a mutual fund is denoted by Net

Asset Value (NAV).

Mutual funds invest the money collected from the investors in securities
markets. In simple words, Net Asset Value is the market value of the

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securities held by the scheme. Since market value of securities changes
every day, NAV of a scheme also varies on day to day basis. The NAV per
unit is the market value of securities of a scheme divided by the total number
of units of the scheme on any particular date. For example, if the market
value of securities of a mutual fund scheme is Rs 200 lakhs and the mutual
fund has issued 10 lakhs units of Rs. 10 each to the investors, then the NAV
per unit of the fund is Rs.20. NAV is required to be disclosed by the mutual
funds on a regular basis - daily or weekly - depending on the type of scheme.

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 Scope for Development of Mutual Fund

A Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed
basket of securities at a relatively low cost. India has a burgeoning population
of middle class now estimated around 300 million. A typical Indian middle
class family can have liquid savings ranging from Rs.2 to Rs.10 Lacs today.
Investments in Banks are liquid and safe, but with the falling rate of interest
offered by Banks on Deposits, it is no longer attractive. At best a part can be
saved in bank deposits, but what is the other sources of investment for the
common man? Mutual Fund is the ready answer. Viewed in this sense
globally India is one of the best markets for Mutual Fund Business, so also
for Insurance business. This is the reason that foreign companies compete
with one another in setting up insurance and mutual fund business units in
India. The sheer magnitude of the population of educated white collar
employees provides unlimited scope for development of Mutual Fund
Business in India.

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 Benefits of Mutual Funds

There are numerous benefits of investing in mutual funds and one of the key
reasons for its phenomenal success in the developed markets like US and UK is
the range of benefits they offer, which are unmatched by most other investment
avenues. We have explained the key benefits in this section. The benefits have
been broadly split into universal benefits, applicable to all schemes, and benefits
applicable specifically to open-ended schemes.

1. AFFORDABILITY
A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending
upon the investment objective of the scheme. An investor can buy in to a portfolio
of equities, which would otherwise be extremely expensive. Each unit holder thus
gets an exposure to such portfolios with an investment as modest as Rs.500/-. This
amount today would get you less than quarter of an Infosys share! Thus it would

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be affordable for an investor to build a portfolio of investments through a mutual
fund rather than investing directly in the stock market.

2. DIVERSIFICATION

The nuclear weapon in your arsenal for your fight against Risk. It simply means that
you must spread your investment across different securities (stocks, bonds, money
market instruments, real estate, fixed deposits etc.) and different sectors (auto,
textile, information technology etc.). This kind of a diversification may add to the
stability of your returns, for example during one period of time equities might under
perform but bonds and money market instruments might do well enough to offset
the effect of a slump in the equity markets. Similarly the information technology
sector might be faring poorly but the auto and textile sectors might do well and
may protect your principal investment as well as help you meet your return
objectives.

3. VARIETY
Mutual funds offer a tremendous variety of schemes. This variety is
beneficial in two ways: first, it offers different types of schemes to

Professional Management

The 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.

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  Diversification

Mutual Funds invest in a number of companies across a broad cross-

section of industries and sectors. This diversification reduces the risk
because seldom do all stocks decline at the same time and in the same
proportion. You achieve this diversification through a Mutual Fund with far
less money than you can do on your own.

 Convenient Administration
Investing n in a Mutual Fund reduces paperwork and helps you avoid
many problems such as bad deliveries, delayed payments and
unnecessary follow up with brokers and companies. Mutual Funds save
your time and make investing easy and convenient.

1. Return Potential

Over a medium to long-term, Mutual Funds have the potential to provide

a higher return as they invest in a diversified basket of selected
securities.

2. Low Costs

Mutual Funds are a relatively less expensive way to invest compared to

directly investing in the capital markets because the benefits of scale in
brokerage, custodial and other fees translate into lower costs for
investors.

3. Liquidity

In open-ended schemes, you can get your money back promptly at net
asset value related prices from the Mutual Fund itself. With close-ended

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 schemes, you can sell your units on a stock exchange at the prevailing
market price or avail of the facility of direct repurchase at NAV related
prices which some close-ended and interval schemes offer you
periodically.

4. Transparency

You 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 manager's
investment strategy and outlook.

5. Flexibility

Through 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.

6. Well Regulated

All Mutual Funds are registered with SEBI and they function within
the provisions of strict regulations designed to protect the interests of
investors. The operations of Mutual Funds are regularly monitored by
SEBI.

7. Understanding and Managing Risk

All 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;

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 generally, however longer the term, lesser the risk; companies may
default in payment of interest/principal on their deposits/bonds
debentures; the rate of interest on investment may fall short of the rate
of inflation reducing the purchasing power.

While risk cannot be eliminated, skillful management can minimize risk.

Mutual fund helps to reduce risk through diversification and professional
management. The experience and expertise of Mutual Fund managers
in selecting fundamentally sound securities and timing their purchases
and sales help them to build a diversified portfolio that minimize risk and
maximizes returns.

8. Tax Benefits

The incomes under Mutual Funds are much more Tax efficient than any
fixed income security due to the following benefits:-

 Section 80L of the income Tax Act ,1961 enables tax free income
up to Rs 15000 and dividends from MF s are eligible for this
benefit.
 When you invest for over a year, the tax payable on encashment
is Long term Capitals gains tax at 20%. Once also get an
indexation benefit which has been approximately 8% per year.
This reduces the taxable income and thus decreases the tax
liability.
 There is also an opportunity to set off capital losses against gains
from income schemes.

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  Full exemption from capital gains tax as it comes under Section
54EA/EB of the income tax Act.
 One has to pay tax only when he encase 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.
This generates higher post tax returns compared to other debt
instruments.

Tax is just like a monster that frightens a number of individuals

throughout the nation. There are just two way to fight with this
monster:

. Conceal/Depress Income

. Make tax efficient investments.

Perhaps 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 citizen
of the nation. With 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.

The taxes available are two kinds:

. To the mutual fund- as explained below in No 1

. To the Investor- as explained below in No 2

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1. Mutual Fund Taxation

. Mutual fund is fully exempted from the tax under Section10 (23D) of the
Income Tax Act1961.

. It receives all income without deduction at source.

. Mutual funds do not have to pay tax on trading profit, short term capital
gain, dividend income, underwriting commission, placement fees, long term
capital gains, other income, etc.

2. Benefits to the Investors

There are number of benefits that the investor of a mutual fund avail.
These are discussed as follows:

Resident Unit Holders- In case of an individual or Hindu Undivided Families

(HUF’s), income by way of dividends, if any from unit of schemes of the fund
together with other income on specified investment/deposit are except from
tax within the overall limit of Rs.15000/- specified under Section80L of the
I.T. Act,1961. Since dividends from shares no longer invite dividend tax and
hence the whole limit is available for mutual fund dividends.

. Tax deduction at source- as per Section196A of the Income Tax Act, 1961,
no deduction of tax at source is made from any income payable to the unit
holders. This implies that there is no tax deduction at source for redemption
up to any limit.

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As per Section194k of the I.T.Act 1961, deduction of tax at source is not
made if the dividend income from a mutual fund does not exceed Rs10000
per annum.

Investment criteria

 Lower cost

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

option in the market. Here the investor can invest a minimum of Rs500 in the
scheme of ELSS (Equity Link Saving Scheme).

 Less paper work

Here less paper work is require than other. The investor give his detail
information like his/her name,age,address,phone no., pan card no, nominee
name and address(in case of minor) and three full signature of the candied.

 No cash Transactions

Investor need not require paying cash, instead of cash investor has to pay
cheque or demand draft. Which help to prevent misappropriation and also
save the tax. Here the investor just writes the product name of mutual fund
and sign on it. It also saves the time.

 No Age Bar

There is no age bar of investor here any age group can invest in mutual
fund. In case of minor (below 18 year) there is a nominee, so a child can

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invest through his guardian and a person having age of 70 also invest in
mutual fund ,which is not possible in other investments.

OBJECTIVE OF THE STUDY

Indian financial system has been expiring the vast effect of globalization i.e.
drastic interest rate cut, political disturbances, security scam etc. have
scattered the common investor’s perception in selecting various investment
portfolio. Most of the security holders have lost their confidence in newly
come-up corporate sectors for investment. Looking to the situation, it is quite
encouraging to analyse how the HDFC Mutual Fund able to trap the deposits
by introducing various schemes and how it protects the interest of the
investors.

The main study is based on the performance and analysis of various

schemes with reference to HDFC Mutual Fund that is a leading mutual fund
industry in India.

The total performance analysis of financial instruments with reference to the

HDFC Mutual Fund has got objectives. This are as follows:-

 To know the performance of the different schemes.

 The comparative study of HDFC Mutual Fund with other
mutual funds.
 To know the investment pattern of the investors in different
schemes.

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  The benefits made from the investment on the different
schemes.
 To know the ranking of the HDFC Mutual Fund Schemes.

STRUCTURE OF A MUTUAL FUND

THE STRUCTURE CONSISTS OF:

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SPONSOR:

Sponsor is the person who acting alone or in combination with another body
corporate establishes a mutual fund. Sponsor must contribute at least 40%
of the net worth of the Investment managed and meet the eligibility criteria
prescribed under the Securities and Exchange Board of India (Mutual Fund)
Regulations, 1996. The sponsor is not responsible or liable for any loss or
shortfall resulting from the operation of the Schemes beyond the initial
contribution made by it towards setting up of the Mutual Fund.

TRUST:

The Mutual Fund is constituted as a trust in accordance with the provisions

of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered
under the Indian Registration Act, 1908.

TRUSTEE:

Trustee is usually a company (corporate body) or a Board of Trustees (body

of individuals). The main responsibility of the Trustee is to safeguard the
interest of the unit holders and ensure that the AMC functions in the interest
of investors and in accordance with the Securities and Exchange Board of
India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed
and the Offer Documents of the respective Schemes. At least 2/3rd directors
of the Trustee are independent directors who are not associated with the
Sponsor in any manner.

ASSET MANAGEMENT COMPANY (AMC):

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The AMC is appointed by the Trustee as the Investment Manager of the
Mutual Fund. The AMC is required to be approved by the Securities and
Exchange Board of India (SEBI) to act as an asset management company
of the Mutual Fund. At least 50% of the directors of the AMC are independent
directors who are not associated with the Sponsor in any manner. The AMC
must have a net worth of at least 10 cores at all times.

REGISTRAR AND TRANSFER AGENT:

The AMC if so authorized by the Trust Deed appoints the Registrar and
Transfer Agent to the Mutual Fund. The Registrar processes the application
form, redemption requests and dispatches account statements to the unit
holders. The Registrar and Transfer agent also handles communications
with investors and updates investor records.

INVESTORS PROFILE:

An investor normally prioritizes his investment needs before undertaking an

investment. So different goals will be allocated to different proportions of the
total disposable amount. Investments for specific goals normally find their
way into the debt market as risk reduction is of prime importance, this is the
area for the risk-averse investors and here, Mutual Funds are generally the
best option. One can avail of the benefits of better returns with added
benefits of anytime liquidity by investing in open-ended debt funds at lower
risk, this risk of default by any company that one has chosen to invest in, can
be minimized by investing in Mutual Funds as the fund managers analyse
the companies financials more minutely than an individual can do as they
have the expertise to do so.

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 Moving up the risk spectrum, there are people who would like to take some
risk and invest in equity funds/capital market. However, since their appetite
for risk is also limited, they would rather have some exposure to debt as well.
For these investors, balanced funds provide an easy route of investment,
armed with expertise of investment techniques, they can invest in equity as
well as good quality debt thereby reducing risks and providing the investor
with better returns than he could otherwise manage. Since they can reshuffle
their portfolio as per market conditions, they are likely to generate moderate
returns even in pessimistic market conditions. Next comes the risk takers,
risk takers by their nature, would not be averse to investing in high-risk
avenues. Capital markets find their fancy more often than not, because they
have historically generated better returns than any other avenue, provided,
the money was judiciously invested. Though the risk associated is generally
on the higher side of the spectrum, the return-potential compensates for the
risk attached.

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 TYPES OF MUTUAL FUND SCHEME

 Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and

repurchase on a continuous basis. These schemes do not have a fixed
maturity period. Investors can conveniently buy and sell units at Net Asset
Value (NAV) related prices which are declared on a daily basis. The key
feature of open-end schemes is liquidity.

 Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7

years. The fund is open for subscription only during a specified period at the
time of launch of the scheme. Investors can invest in the scheme at the time
of the initial public issue and thereafter they can buy or sell the units of the
scheme on the stock exchanges where the units are listed. In order to
provide an exit route to the investors, some close-ended funds give an option
of selling back the units to the mutual fund through periodic repurchase at
NAV related prices. SEBI Regulations 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. These mutual funds schemes disclose NAV
generally on weekly basis.

 Sector specific funds/schemes

These are the funds/schemes which invest in the securities of only those
sectors or industries as specified in the offer documents. e.g.
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Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG),
Petroleum stocks, etc. The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds may
give higher returns, they are more risky compared to diversified funds.
Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time. They may also seek
advice of an expert.

 Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions
of the Income Tax Act, 1961 as the Government offers tax incentives for
investment in specified avenues. e.g. Equity Linked Savings Schemes
(ELSS). Pension schemes launched by the mutual funds also offer tax
benefits. These schemes are growth oriented and invest pre-dominantly in
equities. Their growth opportunities and risks associated are like any equity-oriented
scheme.

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 INVESTMENT PLAN

SYSTEMATIC INVESTMENT PLAN (SIP)

HDFC MF SIP is similar to a Recurring Deposit. Every month on a specified

date an amount you choose is invested in a mutual fund scheme of your choice.
The dates currently available for SIPs are the 1st, 5th, 10th, 15th, 20th and the
25th of a month. You’ll be amazed to learn about the many benefits of investing
through HDFC MF SIP.

Benefit 1 : Become A Disciplined Investor

Being disciplined - It’s the key to investing success. With the HDFC MF Systematic
Investment Plan you commit an amount of your choice (minimum of Rs. 1000 and
in multiples of Rs. 100 thereof*) to be invested every month in one of our schemes.
Think of each SIP payment as laying a brick. One by one, you’ll see them
transform into a building. You’ll see your investments accrue month after month.
It’s as simple as giving at least 6 post-dated monthly cheques to us for a fixed
amount in a scheme of your choice. It’s the perfect solution for irregular investors.
Minimum amounts may differ for each Scheme. Please refer to SIP Enrolment
Form for details.

Benefit 2 : Reach Your Financial Goal

Imagine you want to buy a car a year from now, but you don’t know where the
down-payment will come from. HDFC MF SIP is a perfect tool for people who
have a specific, future financial requirement. By investing an amount of your
choice every month, you can plan for and meet financial goals, like funds for a

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child’s education, a marriage in the family or a comfortable postretirement life.
The table below illustrates how a little every month can go a long way.
Monthly Savings - What your savings may generate

Savings per month Total amount invested Rate of return

(for 15 years) (Rs. in Lacs)
6.0% 8.0% 10.0%

(rupees in lacs, 15 years later)*

5000 9.0 14.6 17.4 20.9

4000 7.2 11.7 13.9 16.7

3000 5.4 8.8 10.4 12.5

2000 3.6 5.8 7.0 8.3

1000 1.8 2.9 3.5 4.2

Monthly instalments, compounded monthly, for a 15-year period.

Disclaimer: The illustration above is merely indicative in nature and should not
be construed as investment advice. It does not in any manner imply or suggest
performance of any HDFC Mutual Fund Scheme(s). Please read Risk Factors.

Benefit 3 : Take Advantage of Rupee Cost Averaging

Most investors want to buy stocks when the prices are low and sell them when
prices are high. But timing the market is time-consuming and risky. A more
successful investment strategy is to adopt the method called Rupee Cost
Averaging. To illustrate this we’ll compare investing the identical amounts
through a SIP and in one lump sum.

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Imagine Suresh invests Rs. 1000 every month in an equity mutual fund scheme
starting in January. His friend, Rajesh, invests Rs. 12000 in one lump sum in the
same scheme. The following table illustrate how their respective investments would have
performed from Jan to Dec:

Suresh’s Investment Rajesh’s Investment

Month NAV Amount Units Amount Units

Jan-04 9.345 1000 107.0091 12000 1284.1091

Feb-04 9.399 1000 106.3943

Mar-04 8.123 1000 123.1072

Apr-04 8.750 1000 114.2857

May-04 8.012 1000 124.8128

Jun-04 8.925 1000 112.0448

Jul-04 9.102 1000 109.8660

Aug-04 8.310 1000 120.3369

Sep-04 7.568 1000 132.1353

Oct-04 6.462 1000 154.7509

Nov-04 6.931 1000 144.2793

Dec-04 7.600 1000 131.5789

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*NAV as on the 10th every month. These are assumed NAVs in a volatile market

Disclaimer: The illustration above is merely indicative in nature and should not
be construed as investment advice. It does not in any manner imply or suggest
performance of any HDFC Mutual Fund Scheme(s). Rupee Cost Averaging
neither ensures you profits nor protects you from making a loss in declining
markets. Please read Risk Factors. As seen in the table, by investing through SIP,
you end up buying more units when the price is low and fewer units when the price
is high. However, over a period of time these market fluctuations are generally
averaged. And the average cost of your investment is often reduced.

At the end of the 12 months, Suresh has more units than Rajesh, even though they invested
the same amount. That’s because the average cost of Suresh’s units is much lower than that
of Rajesh. Rajesh made only one investment and that too when the per-unit price was high.

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Suresh’s average unit price = 12000/1480.6012 = Rs. 8.105
Rajesh’s average unit price = Rs. 9.345

Benefit 4 : Grow Your Investment With Compounded Benefits

It is far better to invest a small amount of money regularly, rather than save up
to make one large investment. This is because while you are saving the lump
sum, your savings may not earn much interest. With HDFC MF SIP, each
amount you invest grows through compounding benefits as well. That is, the
interest earned on your investment also earns interest. The following example
illustrates this.
Imagine Neha is 20 years old when she starts working. Every month she saves
and invests Rs. 5,000 till she is 25 years old. The total investment made by her
over 5 years is Rs. 3 lakhs.Arjun also starts working when he is 20 years old.
But he doesn’t invest monthly. He gets a large bonus of Rs. 3 lakhs at 25 and
decides to invest the entire amount. Both of them decide not to withdraw these

33 | P a g e
investments till they turn 50. At 50, Neha’s Investments have grown to Rs.
46,68,273* whereas Arjun’s investments have grown to Rs. 36,17,084*. Neha’s
small contributions to a SIP and her decision to start investing earlier than Arjun
have made her wealthier by over Rs. 10 lakhs. Figures based on 10% p.a.
interest compounded monthly.

Disclaimer: TheThe illustration above is merely indicative in nature and should

not be construed as investment advice. It does not in any manner imply or
suggest performance of any HDFC Mutual Fund Scheme(s). Please read Risk
Factors.

Benefit 5 : Do All This Effortlessly

Investing with HDFC MF SIP is easy. Simply give us post-dated cheques or opt
for an Auto Debit from you bank account for an amount of your choice (minimum
of Rs. 1000 and in multiples of Rs. 100 thereof*) and we’ll invest the money every
month in a fund of your choice. The plans are completely flexible. You can invest
for a minimum of six months, or for as long as you want. You can also decide to
invest quarterly and will need to invest for a minimum of two quarters.

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 SYSTEMATIC TRANSFER PLAN (STP)

STP refers to Systematic Transfer Plan where in an investor invests a lump

sum amount in one scheme and regularly transfers (i.e. switches) a pre-
defined amount into another scheme. Every month on a specified date an
amount you choose is transfered from one mutual fund scheme to another
of your choice.

Currently, Fixed Systematic Transfer Plan (FSTP) - Monthly Interval and

Capital Appreciation Systematic Transfer Plan (CASTP) - Monthly Interval
facility is available to the Unit holders on 1st, 5th, 10th, 15th, 20th and 25th
of a month and FSTP - Quarterly Interval and CASTP - Quarterly Interval
facility is available to the Unit holders on 1st, 5th, 10th, 15th, 20th and 25th
of the first month of each quarter.

The Entry Load Structure for the transferee schemes - HDFC Growth
Fund, HDFC Equity Fund, HDFC Top 200 Fund, HDFC Capital Builder
Fund, HDFC Core & Satellite Fund, HDFC Premier Multi-Cap Fund, HDFC
Balanced Fund, HDFC Prudence Fund, HDFC Long Term Advantage Fund
and HDFC TaxSaver will be as follows:

The Exit Load Structure is as follows:

For Transferee Schemes : HDFC Long Term Advantage Fund and HDFC
TaxSaver – Nil For Transferee Schemes : HDFC Growth Fund, HDFC
Equity Fund, HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC
Core & Satellite Fund, HDFC Premier Multi-Cap Fund, HDFC Balanced

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Fund and HDFC Prudence Fund.
In respect of each investment through STP less than Rs. 5 crore in value,
an Exit Load of 1.25% is payable if units are redeemed / switched-out on or
before 2 years from the date of allotment. In respect of each investment
through STP equal to or greater than Rs. 5 crore in value, no Exit Load is
payable.

Thus, this facility offers the benefits similar to those of an SIP and is suitable
for investors who intend to invest systematically and currently have funds for
investments.

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 PRODUCTS OF MUTUAL FUND

EQUITY/ GROWTH FUND

CHILDREN’S GIFT FUND

LIQUID FUND

DEBT/ INCOME FUND

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 EQUITY/ GROWTH FUND DEBT/INCOME FUND

HDFC Growth Fund HDFC MF Monthly Income Plan - Short

Term Plan
HDFC Top 200 Fund

HDFC Core and Satellite Fund

HDFC Multiple Yield Fund
HDFC Index Fund - Sensex Plan

HDFC Index Fund - Sensex Plus Plan

HDFC Income Fund
HDFC Balanced Fund

HDFC Long Term Advantage Fund (ELSS)

HDFC Short Term Plan
HDFC Long Term Equity Fund

HDFC Infrastructure Fund

HDFC Gilt Fund - Short Term Plan
HDFC Capital Builder Fund

HDFC Premier Multi-Cap

HDFC Floating Rate Income Fund -Short
HDFC Index Fund - Nifty Plan
Term Plan
HDFC Arbitrage Fund

HDFC Equity Fund

HDFC Cash Management Fund - Savings
HDFC Prudence Fund Plus Plan

HDFC TaxSaver (ELSS)

HDFC Mid-Cap Opportunities Fund HDFC MF Monthly Income Plan - Long

Term Plan

HDFC Multiple Yield Fund - Plan 2005

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 HDFC High Interest Fund

HDFC High Interest Fund - Short term Plan

HDFC Gilt Fund - Long Term Plan

HDFC Floating Rate Income Fund - Long

Term Plan

CHILDREN’S GIFT FUND LIQUID FUND

HDFC Children's Gift Fund - Investment HDFC Liquid Fund

Plan
HDFC Liquid Fund Premium Plan
HDFC Children's Gift Fund - Savings Plan
HDFC Liquid Fund Premium Plus Plan

HDFC Cash Management Fund – Call

HDFC Cash Management Fund - Savings

Plan

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 LEGAL FRAME WORK OF SEBI & AMFI

REGULATORY ASPECTS OF MUTUAL FUNDS:

In the year 1992, Securities and exchange Board of India (SEBI) Act
was passed. The objectives of SEBI are – to protect the interest of
investors in securities and to promote the development of and to
regulate the securities market.

SEBI formulates policies and regulates the mutual funds to protect the
interest of the investors.

GUIDELINES OF SEBI

 Mutual funds are regulated by the SEBI (mutual Fund) Regulations,

1996.

 SEBI is the regulator of all funds, except offshore funds.

 Bank-sponsored mutual funds are jointly regulated by SEBI and RBI.
 The bank-sponsored fund cannot provide a guarantee without RBI
Permission.
 RBI regulates money and government securities markets, in which
Mutual Funds are invested.

 Listed mutual funds are subject to the listing regulations of stock

Exchange.

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  Since the AMC and Trustee Company are companies, the Department
of Company affairs regulate them. They have to send periodic reports to
the ROC (Register of Companies) and the CLB (Company Law
Board) is the appellate authority.

 Investors cannot sue the trust, as they are the same as the trust and
Can’t sue themselves.

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 REGULATORY OF MUTUAL FUND IN INDIA

 SEBI

The capital market regulates the mutual funds in India. SEBI

requires all mutual funds to be registered with them. SEBI issues
guidelines for all mutual funds operations-investment, accounts,
expenses etc. Recently, it has been decided that Money Market
Mutual Funds of registered mutual funds will be regulated by SEBI
through (Mutual Fund) Regulations 1996.

 RBI

RBI, a supervisor of the Banks owned Mutual Funds-As banks in

India come under the regulatory Jurisdiction of RBI, banks owned
funds to be under supervision of RBI and SEBI. RBI has supervisory
responsibility over all entities that operate in the money markets.

 COMPANY LOW BOARD

Registrar of companies is called Company Low Board. AMCs of Mutual
Funds are companies registered under the companies Act 1956 and
therefore answerable to regulatory authorities empowered by the Companies
Act.
 STOCK EXCHANGE
Stock Exchanges are Self-regulatory organizations supervised by SEBI.
Many closed ended funds of AMCs are listed as stock exchanges and are
traded like shares.

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  OFFICE OF THE PUBLIC TRUSTEE

Mutual Fund being public trust is governed by the Indian Trust Act 1882.
The Board of trustee or the Trustees Company is accountable to the
office of public trustee, which in turn reports to the Charity commissioner

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 MAN WITH A MISSION

If ever there was a man with a mission it was

Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of HDFC Group who left
this earthly abode on November 18, 1994.
Born in a traditional banking family in Surat,
Gujarat, Mr. Parekh started his financial
career at Harkisandass Lukhmidass – a
leading stock broking firm. The firm closed
down in the late

Seventies, but, long before that, he went on to become a towering

figure on the Indian financial scene. In 1956 he began his lifelong
financial affair with the economic world, as General .

Manager of the newly-formed Industrial Credit and Investment

Corporation of India (ICICI). He rose to become Chairman and
continued so till his retirement in 1972. At the ripe age of 60,
Hasmukhbhai started his second dynamic life, even more illustrious
than his first. His vision for mortgage finance for housing gave birth
to the Housing Development Finance Corporation – it was a trend-
setter for housing finance in the whole Asian continent.

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 He was also a writer in his own right. There are over 200 published
articles by him...

In 1992, the Government of India honoured him with the Padma

Bhushan Award. The London School of Economics & Political
Science conferred on him an Honorary

He was one of the Founder Members of the Centre for Advancement

of Philanthropy, and it’s Chairman till 1993.

He took active interest in the

Bombay Community Public Trust,
designed specifically to serve the
needs of the

Chairman from Hasmukhbhai, he

said: “Taking over from H.T. Parekh is a formidable task; his vision…
brought about not only an institution, but an entire concept which
has proved itself to be of lasting importance.”

Today we are the largest residential mortgage finance institution in

India, with a net worth of Rs. 2,703 crores as of March 31, 2006 and
an asset base of over Rs. 22,000 crores. We also aim to increase
45 | P a g e
 the flow of resources to the housing sector by integrating the
housing finance sector with the overall domestic financial markets.

Over a span of 25 years, HDFC has become the pioneer in housing

finance in India and made it possible for over two million Families to
own their homes, through housing loans worth over Rs. 42,000
crores.

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 ABOUT COMPANY HDFC :-

HDFC Mutual Fund has been constituted as a trust in accordance with the
provisions of the Indian Trusts Act, 1882, as per the terms of the trust deed
dated June 8, 2000 with Housing Development Finance Corporation Limited
(HDFC) and Standard Life Investments Limited as the Sponsors / Settlors
and HDFC Trustee Company Limited, as the Trustee. The Trust Deed has
been registered under the Indian Registration Act, 1908. The Mutual Fund
has been registered with SEBI, under registration code MF/044/00/6 on June
30, 2000.

HDFC Asset Management Company Limited (AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated under the
Companies Act, 1956, on December 10, 1999, and was approved to act as
an Asset Management Company for the HDFC Mutual Fund by SEBI vide its
letter dated July 3, 2000.
The registered office of the AMC is situated at “HDFC House”, 2nd Floor, H.
T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai - 400
020. The Company Identification Number(CIN) is
U65991MH1999PLC123027.
In terms of the Investment Management Agreement, the Trustee has
appointed the HDFC Asset Management Company Limited to manage the
Mutual Fund.
MORGAN STANLEY MUTUAL FUND
In 2014, HDFC Asset Management Company Ltd and HDFC Trustee
Company Limited (“HDFC Trustee”), the AMC and trustee company of HDFC
Mutual Fund, respectively, entered into an agreement dated December 23,
2013 with Morgan Stanley Investment Management Private Limited (“MS
AMC”) and the Board of Trustees of Morgan Stanley Mutual Fund (the “MS
Trustees”), the asset management company and trustees of Morgan Stanley
Mutual Fund (“MSMF”), pursuant to which the schemes of MSMF (“MSMF
Schemes”) were transferred to, and formed part of HDFC Mutual Fund,
HDFC Trustee took over the trusteeship of the MSMF Schemes from the MS
Trustees and HDFC AMC took over the rights to manage the MSMF
Schemes from MS AMC and became the investment manager of the MSMF
Schemes with effect from June 27, 2014

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HDFC Inflation Indexed Bond Fund was wound up in December 2015.
HDFC Short Term Plan underwent a change in fundamental attributes
As part of the change in fundamental attributes of Morgan Stanley Multi
Asset Fund (Plan A and Plan B), Plan A was renamed as HDFC Dynamic
PE Ratio Fund of Funds and Plan B was merged into it
2. Details about the Changes to the Schemes were provided in Notice-
cum-Addendum dated May 14, 2014 issued by MSMF. The Notice-cum-
addendum and the Option Exercise Letter were also published on the
website of Morgan Stanley Mutual Fund www.morganstanley.com/indiamf

ZURICH INDIA MUTUAL FUND

Zurich Insurance Company (“ZIC”), the Sponsor of Zurich India Mutual Fund,
following a review of its overall strategy, had decided to divest its asset
management business in India, which was operated through Zurich AMC. In
2003, HDFC AMC entered into an agreement with ZIC dated March 16, 2003
to acquire Zurich AMC through the acquisition of its holding company Zurich
Finance (Mauritius) Limited, subject to necessary regulatory approvals.
On obtaining the requisite regulatory approvals, the following schemes of
Zurich India Mutual Fund migrated to HDFC Mutual Fund on June 19, 2003,
in accordance with the deed of variation dated June 19, 2003, executed
between our Company, our Sponsors, our Trustee, ZIC, Zurich Trustee
Company (India) Private Limited and ZAMC. These schemes were renamed
as follows:

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 Former Name New Name

Zurich India Equity Fund HDFC Equity Fund

Zurich India Prudence Fund HDFC Prudence Fund

Zurich India Capital Builder Fund HDFC Capital Builder Fund

Zurich India TaxSaver Fund HDFC TaxSaver

Former Name New Name

Zurich India Top 200 Fund HDFC Top 200 Fund

Zurich India High Interest Fund HDFC High Interest Fund

Zurich India Liquidity Fund HDFC Cash Management Fund

Zurich India Sovereign Gilt Fund HDFC Sovereign Gilt Fund*

Disclaimer:The AMC is also providing portfolio management / advisory

services and such activities are not in conflict with the activities of the Mutual
Fund. The AMC is registered with SEBI vide registration No. - PM /
INP000000506 to act as a Portfolio Manager under the SEBI (Portfolio

49 | P a g e
Managers) Regulations, 1993. The registration is valid unless it is suspended
or cancelled by SEBI.

WHY HDFC MUTUAL FUND

HDFC Mutual Fund is one of the largest mutual funds and well-established
fund houses in the country with focus on delivering consistent fund
performance across categories since the launch of the first scheme(s) in July
2000. While our past experience does make us a veteran, we still strive to
get better.

Mission Statement

Our Investment Philosophy

Equity Schemes
Our investment philosophy for equity-oriented investments is based on the
belief that over time stock prices reflect their intrinsic values. We are medium
to long-term investors in equity and our investments are driven by
fundamental research with a medium to long-term view.

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Debt Schemes
Our investment philosophy for fixed income investments is based on our
objective of delivering optimal risk adjusted returns across our schemes, with
a particular focus on safety, liquidity and returns.

We Offer
We believe in offering products that cater to varied investor needs.
Our products across asset classes and risk categories enable
investors to invest in line with their investment objectives and risk
taking capacity.
To know more about our products please visit
our Products section.
To find out your current financial health and tips about financial
planning

TRUSTEES

MR. ANIL KUMAR HIRJEE

Chairman,
HDFC Trustee Company Limited
Mr. Anil Kumar Hirjee, the Chairman of the Board, is an Independent
Director. Mr. Hirjee has 54 years of experience in different areas of Business
Management and his expertise extends to finance, banking, legal,
commercial, industrial and general administration. Mr. Hirjee has been
associated with “The Bombay Burmah Trading Corporation Limited” since
1976 and is presently its Vice Chairman. He is also a Director on the Boards
of various other companies. He is also actively associated with leading
Charitable Institutions.

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Mr. Hirjee is a B.A. (Hons.), LL.B. (Hons.), Barrister-at-Law and SloanFellow
of the London Business School.

MR. VIMAL BHANDARI

Additional Director,
HDFC Trustee Company Limited
Mr. Vimal Bhandari is appointed as an Additional Independent Director on
the Board. Mr. Bhandari has over 30 years of experience in a range of
businesses in the financial services industry, of which over 21 years have
been at the Board of Directors level. Until April 2017, he was the Managing
Director & CEO of Indostar Capital Finance Limited, a Non-Banking Financial
Services Company (NBFC) since its inception in 2011.
Prior to that, he was the Country Head of AEGON N.V., the Dutch life
insurance and pension player, since its inception in 2004. Before that, he
worked with IL&FS Limited (1988-2004), of which for 9 years he was the
Executive Director, responsible for its financial services business.
Mr Bhandari is a Member of Executive Committee of FICCI and Member of
the Financial Sector Committee of CII. He is also an independent director on
the Board of various companies.

EDUCATION & INSIGHTS

Beginners
Getting Started with Investments

 The ABCs of Investing

 Saving vs. Investing
 Importance of Starting Early
 Knowing your Investing Personality
 Know your Investment Options

Getting Started with Mutual Funds

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 What is a Mutual Fund
 Different Types of Mutual Funds
 Benefits of Mutual Funds
 Key Terms & Concept

Getting Started with Financial Concepts

 Inflation
 Time Value of Money
 Power of Compounding
 Rupee Cost Averaging
 Diversification
 Asset Allocation
 Risk/Return Trade-of

SPONSORS
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
(HDFC Ltd.)
HDFC was incorporated as a public limited company on October 17, 1977
under the Companies Act, 1956 and received a certificate of commencement
of business on December 3, 1977. HDFC received a certificate of registration
dated July 31, 2001 from the NHB under Section 29A of the NHB Act. Its CIN
is L70100MH1977PLC019916 and its registered office is situated at Ramon
House, 169, Backbay Reclamation, H. T. Parekh Marg, Mumbai 400 020,
Maharashtra, India. The equity shares of HDFC were listed on BSE in 1978
and NSE in 1996. The equity shares of HDFC are currently listed on NSE
and BSE.
As per the terms of the memorandum of association of HDFC, its main object
is to, inter alia, advance money to any person, company, association or
society, either at interest or without, and / or with or without any security, for
the purpose of enabling the borrower to erect or purchase or enlarge or repair
any house or building or lease any property in India on such terms and
conditions as it may deem fit.

53 | P a g e
As on date, HDFC carries on the business of financing by way of loans for
the purchase or construction of residential houses, commercial properties
and certain other purposes, in India. All other activities of HDFC revolve
around the main business carried out by it.

STANDARD LIFE INVESTMENTS LIMITED

Standard Life Assurance Company (“Standard Life”) was, founded in 1825
and present in the Indian life insurance market from 1847 to 1938 when
agencies were set up in Kolkata and Mumbai. Standard Life re-entered the
Indian market in 1995, launching an insurance joint venture with HDFC.
In 1998, Standard Life Investments launched as a separate company, rapidly
becoming a leading global asset manager. In 2017, Standard Life merged
with Aberdeen Asset Management forming the Standard Life Aberdeen
Group.
Standard Life Aberdeen is one of the world’s largest investment companies,
dedicated to creating long-term value for clients and shareholders.
On completion of the merger, Standard Life Investments Limited remains a
wholly owned subsidiary of Standard Life Investments (Holdings) Limited,
which in turn is a wholly owned subsidiary of Standard Life Aberdeen plc, the
ultimate parent of the Standard Life Aberdeen Group.
While retaining distinct investment philosophies and processes, Standard
Life Investments and Aberdeen Asset Management share a set of common
investment beliefs. The combined investment business has a substantial
global presence with clients across 80 countries and £575.7bn assets under
management*. It manages a diverse portfolio covering all major markets
world-wide, including a range of private and public equities, government and
company bonds, property investments and various derivative instruments.
For more information log on to www.aberdeenstandard.com

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HDFC ASSET MANAGEMENT COMPANY LIMITED (AMC)

Internal Structure & processes:

Management Team:
HDFC Trustee company Limited: a company incorporated under the
Companies Act, 1956 is the Trustee to the Mutual Fund vide the Trust
deed dated June 8, 2000, as amended from time to time. HDFC Trustee
Company Limited is a wholly owned subsidiary of HDFC Limited.

HDFC Asset Management Company Ltd (AMC) was incorporated

under the Companies Act, 1956, on December 10, 1999, and was
approved to act as an Asset Management Company for the HDFC
Mutual Fund by SEBI vide its letter dated July 3, 2000. The registered
office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh
Marg, 169, Backbay Reclamation, Church gate, Mumbai-400020. In
terms of the Investment Management Agreement, the Trustee has
appointed the HDFC Asset Management Company Limited to manage
the Mutual Fund. The paid up capital of the AMC is Rs. 45.161crore.

55 | P a g e
 HDFC Mutual Fund

HDFC Asset Management Company (AMC) is the first AMC in India to

have been assigned the ‘CRISIL Fund House Level – 1’ rating. This is
its highest Fund Governance and Process Quality Rating which reflects
the highest governance levels and fund management practices at
HDFC AMC It is the only fund house to have been assigned this rating
for two years in succession. Over the past, we have won a number of
awards and accolades for our Performance.

HDFC Mutual Fund is one of the largest mutual funds and well-
established fund house in the country with consistent and above
average fund performance across categories since its incorporation on
December 10, 1999.

HDFC MUTUAL FUND PRODUCTS

Equity Funds

HDFC Growth Fund

HDFC Long Term Advantage Fund

HDFC Index Fund

HDFC Equity Fund

HDFC Capital Builder Fund

HDFC Tax saver

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HDFC Top 200 Fund

HDFC Core & Satellite Fund

HDFC Premier Multi-Cap Fund

HDFC Long Term Equity Fund

HDFC Mid-Cap Opportunity Fund

Balanced Funds

HDFC Children's Gift Fund Investment Plan

HDFC Children's Gift Fund Savings Plan

HDFC Balanced Fund

HDFC Prudence Fund

Debt Funds

HDFC Income Fund

HDFC Liquid Fund

HDFC Gilt Fund Short Term Plan

HDFC Gilt Fund Long Term Plan

HDFC Short Term Plan

HDFC Floating Rate Income Fund Short Term Plan

HDFC Floating Rate Income Fund Long Term Plan

HDFC Liquid Fund - PREMIUM PLAN

HDFC Liquid Fund - PREMIUM PLUS PLAN

HDFC Short Term Plan - PREMIUM PLAN

HDFC Short Term Plan - PREMIUM PLUS PLAN

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 ACHIEVEMENT AND AWARDS

CNBC - TV 18 - CRISIL Mutual Fund of the Year Awards 2008 :

HDFC Prudence Fund was the only scheme that won the CNBC - TV 18 -
CRISIL Mutual Fund of the Year Award 2008 in the Most Consistent
Balanced Fund under CRISIL ~ CPR for the calendar year 2007 (from
amongst 3 schemes).

HDFC Cash Management Fund - Savings Plan was the only scheme that
won the CNBC - TV 18 - CRISIL Mutual Fund of the Year Award 2008 in
the Most Consistent Liquid Fund under CRISIL ~ CPR for the calendar
year 2007 (from amongst 5 schemes).

HDFC Cash Management Fund - Savings Plan was the only scheme that
won the CNBC - TV 18 - CRISIL Mutual Fund of the Year Award 2008 in
the Liquid Scheme – Retail Category for the calendar year 2007 (from
amongst 19 schemes).

Lipper Fund Awards 2008:

HDFC Equity Fund - Growth has been awarded the 'Best Fund over Ten
Years' in the 'Equity India Category' at the Lipper Fund Awards 2008
(form amongst 23 schemes). It was awarded the Best Fund over ten years
in 2006 and 2007 as well. 2008 makes it three in a row.
Lipper Fund Awards 2009 :

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HDFC Equity Fund - Growth has been awarded the 'Best Fund over Ten
Years' in the 'Equity India Category' (form amongst 34 schemes) and HDFC
Prudence Fund – Growth Plan in the ‘Mixed Asset INR Aggressive
Category’ (from amongst 6 schemes), have been awarded the ‘Best Fund
over 10 Years’ by Lipper Fund Awards India 2009.

ICRA Mutual Fund Awards – 2008 :

HDFC MF Monthly Income Plan - Long Term Plan - Ranked a Seven Star
Fund and has been awarded the Gold Award for "Best Performance" in
the category of "Open Ended Marginal Equity" for the three year period
ending December 31, 2007 (from amongst 27 schemes)

HDFC High Interest Fund - Short Term Plan - Ranked a Five Star Fund
indicating performance among the top 10% in the category of "Open Ended
Debt - Short Term" for one year period ending December 31, 2007 (from
amongst 20 schemes).

HDFC Prudence Fund - Ranked a Five Star Fund indicating performance

among the top 10% in the category of "Open Ended Balanced" for the three
year period ending December 31, 2007 (from amongst 16 schemes)

CNBC TV18 - CRISIL MUTUAL FUND AWARDS 2011:

Debt Mutual Fund House of the Year

Eligibility Criteria: Gilt, Income, Income - Short, Liquid - Retail, Liquid -

Institutional, Liquid - Super Institutional, MIP - Aggressive, MIP -
Conservative, Ultra Short term debt - Retail, Ultra Short term debt-
Institutional , Ultra Short term - Super Institutional, Consistent Debt and

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Consistent Liquid categories are considered.

Methodology: Quarterly CRISIL Fund Ranks during the year for the above
categories, for ranked schemes from eligible fund houses, are multiplied
with appropriate factors to arrive at the weighted scores. The mutual fund
house with the highest weighted score is awarded the ’Debt Mutual Fund
House of the Year’.

Equity Mutual Fund House of the Year Award

Eligibility Criteria: Large cap, Diversified, Small & Mid cap, ELSS, Index,
Thematic - Infrastructure, Balanced, Consistent Equity and Consistent
Balanced categories are considered.

Methodology: Quarterly CRISIL Fund Ranks during the year for the above
categories, for ranked schemes from eligible fund houses, are multiplied
with appropriate factors to arrive at the weighted scores. The mutual fund
house with the highest weighted score is awarded the ’Equity Mutual Fund
House of the Year’.

Mutual Fund House of the Year Award

Eligibility Criteria: The mutual fund house should have won at least one
scheme level award.

Methodology: Quarterly CRISIL Fund Ranks during the year across all
categories, for ranked schemes from eligible fund houses, are multiplied
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with appropriate factors to arrive at the weighted scores. The mutual fund
house with the highest weighted score is the ’Mutual Fund House of The
Year’.

STRENGTHS AND WEAKNESSES:

STRENGTHS:
a) Wide range of products: The AMC has got good number of
differentiated products in the entire asset class.

b) Consistent performance: The funds have given consistent

performance over 10 years.

c) Experienced team: HDFC has fund managers with rich experience

whose consistent performance has made this AMC CRISIL level one
fund house.

d) Strong Compliance: The AMC has very strong compliance of industry

set rules to protect the interest of the investors.

e) Risk management team: AMC has a separate risk management team

which constantly monitor the risk exposure related to different fund
management.
WEAKNESSES:
a) Restrictive reach: HDFC business is more concentrated on urban
areas. HDFC has very limited offices.
b) Less Aggressive in Marketing and execution: HDFC does match the
aggressiveness required in the industry and are slow in execution.

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 HDFC PROVIDES:-

Personalized Service
We believe in providing a personalized service enabling individual
attention to achieve your investment goal.

Professional Advice
We provide professional advice on equity and debt portfolio with an
objective to provide consistent long-term return while taking calculated
market risk. Our approach helps you to build a proper mix of portfolio, not
just to promote one individual product. Hence your long term objectives
are best served.

Long-term Relationship

We believe steady wealth creation requires long-term vision, it can’t be

achieved in a short span of time. To achieve this one needs to take
advantage of short-term market opportunity while not losing sight of
long term objective. Hence we partner all our clients in their objective of
achieving their long-term Vision.

Access to Research Reports

Through us, you will have access to certain research work of CRISIL, so
that you will benefit from the expert knowledge of economists and
analysts of one of the leading financial research and rating company of
India. This third party research gives you a comfort of getting unbiased
advice to make a proper decision for your investment.

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Transparency & Confidentiality
Through email you will get a regular portfolio statement from us. You will also
be given a web access to view at your convenience the details of your
investments and its performance. Access to your portfolio is restricted to you
and our monitoring system enables us to detect any unauthorized access to
your investments.

Flexibility

To facilitate smooth dealing and consistent attention, all our clients will be
serviced by their respective relationship executive. This allows us to provide
tailor made advice to achieve your investment objective.

Hassle Free Investment

Our relationship person will provide you with a customized service at your
convenience. We take care of all the administrative aspects of your
investments including submission of application forms to fund houses along
with monthly reporting on overall state of your investments and
performance of your portfolio.

Mutual funds are all the rage today simply because people have realized the
symbiotic relationship that an investor shares with the asset management
companies as compared to the ever volatile and ruthless world of SENSEX.

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 COMPETITOR ANALYSIS:-

Tata Mutual Fund:-

Tata Asset Management Private Limited is very old
house and is well placed in the market.

Tata Mutual Fund has AUM of Rs.21304 Crores.

Size and Growth:

Tata MF opened its office in Jamshedpur four years ago. Since than it has done
good business. Tata have brand advantage in Jamshedpur, as investors trust
TATA group. Jamshedpur which is a market of Rs 1300cr, Tata MF has nearly 10-
12% of the market share of Jamshedpur. In Jharkhand they have four offices.

Internal Structure & processes:

Tata Mutual Fund has been constituted as a trust on 9th May 1995 in accordance
with the provisions of the Indian Trusts Act, 1882 with Tata Sons Limited (TSL) and
Tata Investment Corporation Limited (TICL) as the sponsers and the settlers. The
Mutual Fund was registered with SEBI on 30th Tata Mutual Fund (TMF) has been
constituted as a Trust in accordance with the provisions of the Indians Trusts Act,
1882 and is registered as a Trust under The Indian Registration Act, 1908. TMF was
registered with Securities & Exchange Board of India (SEBI) and commenced
operation by launching

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 THE FUTURE GROWTH DRIVERS:-

 Higher GDP Growth.

 India's huge financial spread Investment System.
 Systematic investment planning ratio which is projected to double by 2009–
2010.
 Fast paced urbanization rise from 28 to 40% by 2020.
 Growing working class population and Middle class expanding by 30 – 40
million every year.
 Upward migration of household income levels.
 Fast economic Development.
 Increasing disposable Income with the service sector.
 Cheaper (declining interest rates) & easier finance Schemes.
 Govt. policy promotes tax investment & planning Sec 80 C.
 Increasing level of FDI in country.
 Emergence of India as BPO and IT hub.

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 Part of my understudy training

For the purpose of fulfillment of masters degree in business administration i had

undertaken my summer training at HDFC-mutual fund at Kota branch for a period of 45
days. In course of the training i had an opportunity to get proper working knowledge about
the internal workings of Mutual funds dept.

The single most important factor that drives HDFC Mutual Fund is its belief to give the
investor the chance to profitably invest in the financial market, without constantly worrying
about the market swings.

I had chosen the HDFC-mutual fund as it is one of the most highly reputed mutual fund
all over the INDIA and offers under study training to students during summer. I had the
job of convincing investors to choose HDFC mutual funds over others. For this purpose I
also maintained a database of all the investors who had been approached.

Money is a valuable asset and it is obvious that people think many times before investing
their money into any kind of funds. They frequently ask questions about the time period,
interest rates, current status of the share market, etc which requires good running
knowledge in the field.

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 RESEARCH METHODOLOGY

NEED FOR THE STUDY

The Mutual Fund Companies periodically build up a study, which can prioritize and
analyse the portfolio of the mutual funds. This study is helpful in having a
comparison among the mutual funds based on the risk bearing capacity and expected
return of the investor and will also carry out an analysis of the portfolio of the
selected mutual fund.

The mutual fund industry is growing globally and new products are emerging in the
market with all captivating promises of providing high return. It has become difficult
for the investors to choose the best fund for their needs or in other words to find out
a fund which will give maximum return for minimum risk. Therefore, they turn to
their financial adviser to get precise direct investment. Hence, the company asked
me to prepare a model, which will facilitate them to analyse the fund and to have
reasonable estimation for the fund performance.

The driving force of Mutual Funds is the ‘safety of the principal’ guaranteed, plus
the added advantage of capital appreciation together with the income earned in the
form of interest or dividend. The various schemes of Mutual Funds provide the
investor with a wide range of investment options according to his risk bearing
capacities and interest besides; they also give handy return to the investor. Mutual
Funds offers an investor to invest even a small amount of money, each Mutual Fund
has a defined investment objective and strategy. Mutual Funds schemes are managed
by respective asset managed companies, sponsored by financial institutions, banks,

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private companies or international firms. A Mutual Fund is the ideal investment
vehicle for today’s complex and modern financial scenario.

The study is basically made to analyze the various open-ended equity schemes of
HDFC Asset Management Company to highlight the diversity of investment that
Mutual Fund offer. Thus, through the study one would understand how a common
person could fruitfully convert a meagre amount into great penny by wisely investing
into the right scheme according to his risk taking abilities.

Sharpe ratio is a performance measure, which reflects the excess return earned on a
portfolio per unit of its total risk (standard deviation). Trey nor measure indicates
the risk premium return per unit risk of the portfolio. While Jensen alpha talks about
the deviation of the actual return from its expected one. Feme measure decomposes
the portfolio total return into two main components: systematic return and the
unsystematic return. It determines whether the portfolio is perfectly diversified or
not. Hence, it is a significant measure to evaluate the performance of the fund
manager.

The analysis of the fund portfolio has been done to find out the influence of the top
holdings on the performance of the fund. All these measures give fair implication
and results about the portfolio performance and can show the ground reality to a
rational investor.

OBJECTIVE OF THE STUDY

 Whether the growth oriented Mutual Fund are earning higher returns than the
benchmark returns (or market Portfolio/Index returns) in terms of risk.

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  Whether the growth oriented mutual funds are offering the advantages of
Diversification, Market timing and Selectivity of Securities to their investors

 This study provides a proper investigation for logical and reasonable

comparison and selection of the funds.

 It also assists in analysing the portfolio of the selected funds.

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 LIMITATIONS OF THE STUDY

 The study is limited only to the analysis of different schemes and its suitability
to different investors according to their risk-taking ability.

 The study is based on secondary data available from monthly fact sheets,
websites and other books, as primary data was not accessible.

 The study is limited by the detailed study of six schemes of HDFFC.

 Many investors are all price takers.

 The assumption that all investors have the same information and beliefs about
the distribution of returns.

 Banks are free to accept deposits at any interest rate within the ceilings fixed
by the Reserve Bank of India and interest rate can vary from client to client.
Hence, there can be inaccuracy in the risk free rates.

The study excludes the entry and the exit loads of the mutual funds

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 Data sources:

Research is totally based on primary data. Secondary data can

be used only for the reference. Research has been done by

primary data collection, and primary data has been collected by

interacting with various people. The secondary data has been

collected through various journals and websites.

Sources of Data collection

There are two sources of data collection. They are:

1. PRIMARY DATA SOURCE

2. SECONDARY DATA SOURCE

The secondary data are those, which have already been collected by
someone else thorough Books, Internet, Television, journals, Magazines,
etc. On the other hand primary data does not exist here. The researcher has
to gather primary data afresh for the specific study undertaken by him.
Primary data has been collected here by questionnaire method and personal
interview method is followed. Primary sources such as Interviews,
Observation, and attending training and development classes. Secondary
sources such as Booklets, Monthly journal, Magazines, Official files etc.

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 Sampling:

 Sampling procedure:

The sample was selected of them who are the customers/visitors of

State Bank of India, Boring Canal Road Branch, irrespective of them

being investors or not or availing the services or not. It was also

collected through personal visits to persons, by formal and informal

talks and through filling up the questionnaire prepared. The data has

been analysed by using mathematical/Statistical tool.

 Sample size:

The sample size of my project is limited to 200 people only. Out

of which only 120 people had invested in Mutual Fund. Other 80

people did not have invested in Mutual Fund.

 Sample design:

Data has been presented with the help of bar graph, pie charts,

line graphs etc.

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 CASE ANALYSIS
DATA INTERPRETATION

Risk returns analysis and comparative study of funds

In this section, a sample of HDFC equity related funds have been studied, evaluated
and analysed. This study could facilitate to get a fair comparison.

The expectations of the study are to give value to the funds by keeping the risk in
the view. Here equity funds are taken as they bear high return with high risk.

(a) Age distribution of the Investors

Age Group <= 30 31-35 36-40 41-45 46-50 >50

No. of 12 18 30 24 20 16
Investors

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 35

Investors invested in Mutual Fund

30

25

20

15 30
24
10 20
18 16
5 12

0
<=30 31-35 36-40 41-45 46-50 >50

Age group of the Investors

Interpretation:

According to this chart out of 120 Mutual Fund investors of the

most are in the age group of 36-40 yrs. i.e. 25%, the second most

investors are in the age group of 41-45yrs i.e. 20% and the least

investors are in the age group of below 30 yrs.

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 (b). Educational Qualification of investors

Educational Qualification Number of Investors

Graduate/ Post Graduate 88

Under Graduate 25

Others 7

Total 120

6%

23%

71%

Graduate/Post Graduate Under Graduate Others

Interpretation:

Out of 120 Mutual Fund investors 71% of the investors in Dehradoon are Graduate/Post

Graduate, 23% are Under Graduate and 6% are others (under HSC).

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 3). Occupation of the investors

Occupation No. of Investors

Govt. Service 30
.
Pvt. Service 45
Business 35
Agriculture 4
Others 6

50
45
No. of Investors

40
35
30
25
20 45
15 35 30
10
5 6
0 4
Govt. Pvt. Service Business Agriculture Others
Service

Occupation of the customers

Interpretation:
In Occupation group out of 120 investors, 38% are Pvt. Employees, 25%

are Businessman, 29% are Govt. Employees, 3% are in Agriculture and

5% are in others.

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 4) Investors invested in different kind of investments.

Kind of Investments No. of Respondents

Saving A/C 195
Fixed deposits 148
Insurance 152
Mutual Fund 120
Post office (NSC) 75
Shares/Debentures 50
Gold/Silver 30
Real Estate 65

65
Kinds of Investment

30
50
75
120
152
148
195
0 100 200 300

No.of Respondents

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 Interpretation:

From the above graph it can be inferred that out of 200 people, 97.5% people have

invested in Saving A/c, 76% in Insurance, 74% in Fixed Deposits, 60% in Mutual Fund,

37.5% in Post Office, 25% in Shares or Debentures, 15% in Gold/Silver and 32.5% in Real

Estate.

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 5. Preference of factors while investing

Factors (a) Liquidity (b) Low Risk (c) High Return (d) Trust

No. of 40 60 64 36

Respondents

18% 20%

32% 30%

Liquidity Low Risk High Return Trust

Interpretation:

Out of 200 People, 32% People prefer to invest where there is High Return, 30% prefer to

invest where there is Low Risk, 20% prefer easy Liquidity and 18% prefer Trust

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 6. Awareness about Mutual Fund and its Operations

Response Yes No

No. of Respondents 135 65

33%

67%

Yes

Interpretation:

From the above chart it is inferred that 67% People are aware of Mutual Fund and
its operations and 33% are not aware of Mutual Fund and its operations

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 7. Source of information for customers about Mutual Fund

Source of information No. of Respondents

Advertisement 18

Peer Group 25

Bank 30

Financial Advisors 62

80

60
No. of Respondents

40
62
20
25 30
18
0
Advertisement Peer Group Bank Financial Advisors

Source of Information

Interpretation:

From the above chart it can be inferred that the Financial Advisor is the most important

source of information about Mutual Fund. Out of 135 Respondents, 46% know about

Mutual fund Through Financial Advisor, 22% through Bank, 19% through Peer Group

and 13% through Advertisement.

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 8. Investors invested in Mutual Fund

Response No. of Respondents

YES 120
NO 80

Total 200

No
40%

Yes
60%

Interpretation:

Out of 200 People, 60% have invested in Mutual Fund and 40% do not have invested in

Mutual Fund.

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 9. Reason for not invested in Mutual Fund

Reason No. of Respondents

Not Aware 65

Higher Risk 5

Not any Specific Reason 10

13% 6%

81%

Not Aware Higher Risk Not Any

Interpretation:

Out of 80 people, who have not invested in Mutual Fund, 81% are not
aware of Mutual Fund, 13% said there is likely to be higher risk and 6%
do not have any specific reason.

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 10. Investors invested in different Assets Management Co. (AMC)

Name of AMC No. of Investors

SBIMF 55
UTI 75
HDFC 30
Reliance 75
ICICI Prudential 56
Kotak 45
Others 70

Others
70
HDFC
30
Name of AMC

Kotak
45
SBIMF
55
ICICI
56
Reliance
75
UTI
75
0 20 40 60 80
No. of Investors

Interpretation:

In most of the Investors preferred UTI and Reliance Mutual Fund. Out of 120 Investors

62.5% have invested in each of them, only 46% have invested in SBIMF, 47% in ICICI

Prudential, 37.5% in Kotak and 25% in HDFC.

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 9. Reason for invested in SBIMF

Reason No. of Respondents

Associated with SBI 35

Better Return 5

Agents Advice 15

27%

9% 64%

Associated with SBI Better Return Agents Advice

Interpretation:

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 Out of 55 investors of SBIMF 64% have invested because of its association with Brand SBI,

27% invested on Agent’s Advice, 9% invested because of better return.

10. Reason for not invested in SBIMF

Reason No. of Respondents

Not Aware 25

Less Return 18

Agent’s Advice 22

34% 38%

28%

Not Aware Less Return Agent's Advice

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 Interpretation:

Out of 65 people who have not invested in SBIMF, 38% were not aware with SBIMF, 28%

do not have invested due to less return and 34% due to Agent’s Advice.

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 Findings

 In the Age Group of 36-40 years were more in numbers. The second most

Investors were in the age group of 41-45 years and the least were in the

age group of below 30 years.

 In most of the Investors were Graduate or Post Graduate and below HSC

there were very few in numbers.

 In Occupation group most of the Investors were Govt. employees, the

second most Investors were Private employees and the least were

associated with Agriculture.

 In family Income group, between Rs. 20,001- 30,000 were more in

numbers, the second most were in the Income group of more than

Rs.30,000 and the least were in the group of below Rs. 10,000.

 About all the Respondents had a Saving A/c in Bank, 76% Invested in Fixed

Deposits, Only 60% Respondents invested in Mutual fund.

 Mostly Respondents preferred High Return while investment, the second

most preferred Low Risk then liquidity and the least preferred Trust.

 Only 67% Respondents were aware about Mutual fund and its operations

and 33% were not.

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 Among 200 Respondents only 60% had invested in Mutual Fund and 40%

did not have invested in Mutual fund.

 Out of 80 Respondents 81% were not aware of Mutual Fund, 13% told

there is not any specific reason for not invested in Mutual Fund and 6% told

there is likely to be higher risk in Mutual Fund.

 65% preferred One Time Investment and 35% preferred SIP out of both

type of Mode of Investment.

 The most preferred Portfolio was Equity, the second most was Balance

(mixture of both equity and debt), and the least preferred Portfolio was

Debt portfolio.

 Maximum Number of Investors Preferred Growth Option for returns, the

second most preferred Dividend Pay-out and then Dividend Reinvestment.

 Most of the Investors did not want to invest in Sectoral Fund, only 21%

wanted to invest in Sectoral Fund.

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 FINANCIAL ANALYSIS

Objective of the study-

The primary objective of this study is to analyze the financial performance

of the two leading Sectorial Mutual Fund schemes of HDFC and TATA on
the basis of various financial parameters, which will be discussed later in
the following sections of the report. This will help in the following ways:

 A complete and comprehensive financial analysis can be made

before making a decision to invest in a particular Mutual Fund
scheme.

 An in-depth and complete approach towards managing a portfolio
of investments can be made by analyzing the funds on the basis of
these financial parameters.

 This study will also give us a brief overview of the quality and
consistency of the fund management in keeping up with the various
expectations and hopes that the mutual fund investors have in the
Asset Management Company (AMC).

 It also helps us to compare the individual fund performance with
the performance of the overall market, including the Bombay Stock
Exchange (BSE), and National Stock Exchange (NSE).


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  It also helps us to study the risk-return trade-off i.e. whether the
hand-in-hand relationship between Risk and Return holds true in
case of Mutual funds or not.


Rationale of choosing these funds-

The above chosen funds have had a market presence of at least three years.
Also the government of India has a large interest in Indian growth story which
is in complete without have a much impetus in infrastructure sector. Hence,
with this fact we can have a fair idea of their acceptability in the market. The
basic rationale of choosing these funds is to have and present a brief idea of
the current mutual funds market and to understand the latest trends in the
market.

Data Collection -

All the data used for the study was secondary data. This data was collected
from the following sources:

 Funds Fact Sheets


 Magazines

 Journal

 Internet

 Key information memorandum of various schemes

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Methodology
The project report is made precisely keeping in mind the Asset management
business in Jamshedpur. Therefore, I had done primary as well as secondary
data collection to facilitate my findings. In primary data collection, I have
made a questionnaire relating to sales, services and distribution services of
the Asset management company. The sample size is 40 persons which include
individual ARNs,

Distribution house RMs, Banking staffs and some customers. The data
was collected and the collated to give a brief idea about which AMC is
good in products, sales and services. The questionnaire also shows
some traits like dependability, trust and suitability of the AMCs in
context to the various requirements of the distributors. The secondary
data was collected from the abyss of different websites and online
articles of experts. The raw data was then compiled and analysed using
different tools.

Primary Data collection:

The primary data is basically consisting of Products (offerings, innovation and
fund performance), Services (response time, reliability, premium services)
and Distribution (brokerages and incentives).

Secondary data collection:

It is collected from different websites; this project is made of more of
secondary data collection.

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 Some of the Major Findings

1. It is found that HDFC is a favourable Mutual Fund.

2. The basis objective behind investments are mainly long-term capital
appreciation, current income & to some extent tax benefits.
3. The performance of HDFC Core & Satellite & HDFC Top 200 Fund is
very good.
4. It is seen that the investment in growth fund is very high. Because the
scope of income and capital appreciation in the long term.
5. It is observed that the driving aspects of investments in mutual fund
are safety, fund performance, Service, Liquidity, return & tax benefits.
6. The 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.
7. HDFC Mutual Fund does not provide ‘monthly income scheme’ which
other mutual funds have and performance is very appreciable.
8. Fund Managers have suggested HDFC prudence, HDFC TaxSaver ,
HDFC Equity for investment , For the top 5.
9. HDFC Prudence is performing good with competition to the prudence
fund of any other mutual fund house.
10. At this period of time when market condition is not so good, it is
better for investors to invest through Systematic Investment plan.
Which reduces the market risk.

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 CONCLUSION:-

HDFC Equity Fund has an ability to spot the sector trends & it has
delivered handsomely. In Current status it emerged as the third best-
performing diversified equity fund.

Running a successful Mutual Fund requires complete understanding of

the peculiarities of the Indian Stock Market and also the psyche of the
small investors. This study has made an attempt to understand the
financial behaviour of Mutual Fund investors in connection with the
preferences of Brand (AMC), Products, Channels etc. I observed that
many of people have fear of Mutual Fund. They think their money will
not be secure in Mutual Fund. They need the knowledge of Mutual Fund
and its related terms. Many of people do not have invested in mutual
fund due to lack of awareness although they have money to invest. As
the awareness and income is growing the number of mutual fund
investors are also growing.

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 SUGGESTIONS TO HDFC MUTUAL FUND:

HDFC Mutual Fund is one of the largest mutual funds and well-established
fund house in the country with consistent and above average fund
performance across categories since its incorporation on December 10,
1999.The single most important factor that drives HDFC Mutual Fund is its
belief to give the investor the chance to profitably invest in the financial
market, without constantly worrying about the market swings.

1. There is a great potential for the mutual fund because the

people are ready to invest in the mutual fund as there is a
positive responses.

2. Now a days people are investing in more of an equity fund

because it gives high return as compare to other mutual fund
schemes.

3. People are preferred to invest in the long term savings when

only they have enough of surplus. They are least concerned
about the other’s advice.

4. The people of Rajkot have enough purchasing power supported

by N.R.I. Mutual Fund Companies should take this fact
positively at the time of designing promotional scheme.

5. HDFC MF is doing comparatively very less marketing in MF

industry in compare to other players. Due to this other player

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 are getting the advantage. Thus it should try to increase the
marketing and advertising related activities time to time or at
least at the time of new NFO’s, at the time when they are
declaring dividends or at the peak time (i.e. January - March)
last quarter of financial year when people are searching for
investing instruments.

6. A very small part market has been cover by HDFC MF. It can
increase the circle of its business in small and rural areas of
every state and cities of India where they can find a huge
business.

7. To uproot the investment level the company should give training

programme to financial agents who approach the investor for
the investments. And they should be aware of all the benefits of
the mutual Funds.

8. Company should undertake the Campaign, Road shows

Advertisement and other type of Publicity for the effective awareness
of different schemes that are available in the market.

9. The company should arrange seminars and presentations, giving

detail idea about securities and benefits of investment in mutual fund.

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 BIBLIOGRAPHY

 NEWS PAPERS

 OUTLOOK MONEY

 TELEVISION CHANNEL (CNBC AAWAJ)

 MUTUAL FUND HAND BOOK

 FACT SHEET AND STATEMENT

1. www.investsmartindia.com

2. www.amfiindia.com

3. www.mutualfundsindia.com

4. www.valueresearchonline.com

5. www.investopedia.com

6. www.bcg.com

7. www.tatamutual.com

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 8. www.google.com

9. www.hdfcfund.com

QUESTIONAIRE

Q 1) : Among the following which mutual fund house is the better fund
house in the terms of products?
a)Tata Mutual Fund b)HDFC Mutual Fund c) Others ( )
Q 2) : Out of the following which fund house gives you and your
customer better satisfaction in the terms of sales support?
a)Tata Mutual Fund b)HDFC Mutual Fund c) Others ( )
Q 3): Among the following which mutual fund house gives you
premium services and after sales services?
a)Tata Mutual Fund b)HDFC Mutual Fund c) Others ( )
Q 4): Which mutual fund is having more effective strategy regarding
the distribution services in terms of brokerage and incentives?
a)Tata Mutual Fund b)HDFC Mutual Fund c) Others ( )
Q 5): Which mutual fund is more aggressive & innovative in terms of
marketing and sales i.e. coming with the NFO and new products ?
a)Tata Mutual Fund b)HDFC Mutual Fund c) Others ( )
Q 6) Which fund house is better in the terms of fund performance in
long and short run?
a)Tata Mutual Fund b)HDFC Mutual Fund c) Others ( )
Q 7) Which fund house’s employee you feel more comfortable
discussing your sales activities?
a)Tata Mutual Fund b)HDFC Mutual Fund c) Others ( )

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