A Synopsis on

“Comparative Study of Mutual Funds of ICICI and HDFC”

Submitted to
YASHWANTRAO CHAVAN MAHARASHTRA OPEN UNIVERSITY
SCHOOL OF COMMERCE AND MANAGEMENT
Nashik.

In partial fulfillment of the Requirement for the award of the degree of

Master of Business Administration (MBA)

By

Miss. Sayali Mahendra Chaudhari.

PRN No: - 2017017000780507

Under the Guidance of

CA. Prof. A. N. Arsiwala.

Through

The Coordinator
Study centre code:- 5303A
1. INTRODUCTION
Mutual funds are pools of money that are managed by an investment company.
They offer investors a variety of goals, depending on the fund and its investment
charter. A mutual fund is a trust that pools the savings of a no. of investors, who
share a common financial goal. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities. The
income earned through these investments and the capital appreciations realized are
shared by its unit holders in proportion to the number of units owned by them.
Thus a mutual fund is the most suitable investment for the common man as it
offers an opportunity to invest in diversified, professionally managed basket of
securities at a relatively low cost.

There are different types of Mutual Funds in India. They are as follows:
Prudential ICICI Mutual Fund

The mutual fund of ICICI is a joint venture with Prudential PLC. Of America, one
of the largest life insurance companies in the USA. Prudential ICICI mutual fund
was set up on 13th of Oct. 1993 with two sponsors. ICICI Bank started as a wholly
owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four
years later, when the company offered ICICI Bank's shares to the public, ICICI's
shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an
equity offering in the form of ADRs on the New York Stock Exchange (NYSE),
thereby becoming the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. In the next year, it
acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the
year and the next fiscal year, the bank made secondary market sales to institutional
investors.

Products and Schemes of Prudential ICICI mutual fund:

 Equity funds.
 Balanced funds.
 Debt funds.
 Liquid funds.
 Children’s gift fund

HDFC Mutual Fund

HDFC mutual fund was set up on June 30, 2000 with two sponsors namely
Housing Development Finance Corporation ltd. and Standard Life Insurance ltd.
HDFC mutual fund came into existence on 10 Dec. 1999 and got approval from the
SEBI on3rd July 2000.
Housing Development Finance Corporation Limited, more popularly known as
HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization
of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the
first banks to receive an 'in principle' approval from RBI, for setting up a bank in
the private sector. The bank was incorporated with the name 'HDFC Bank
Limited', with its registered office in Mumbai. The following year, it started its
operations as a Scheduled Commercial Bank. Today, the bank boasts of as many
as1412 branches and over 3275 ATMs across India.
Products and Schemes of HDFC mutual fund
 Equity funds.
 Balanced funds.
 Debt funds.
 Liquid funds.

Association of Mutual Funds in India (AMFI)

The Association of Mutual Funds in India (AMFI) is dedicated to developing the
Indian Mutual Fund Industry on professional, healthy and ethical lines and to
enhance and maintain standards in all areas with a view to protecting and
promoting the interests of mutual funds and their unit holders.

AMFI, the association of SEBI registered mutual funds in India of all the
registered Asset Management Companies, was incorporated on August 22, 1995,
as a non-profit organization. As of now, all the 42 Asset Management Companies
that are registered with SEBI, are its members.

Objectives of AMFI:

 To define and maintain high professional and ethical standards in all areas of
operation of mutual fund industry.
 To recommend and promote best business practices and code of conduct to
be followed by members and others engaged in the activities of mutual fund
and asset management including agencies connected or involved in the field
of capital markets and financial services.
 To interact with the Securities and Exchange Board of India (SEBI) and to
represent to SEBI on all matters concerning the mutual fund industry.
 To represent to the Government, Reserve Bank of India and other bodies on
all matters relating to the Mutual Fund Industry.
 To undertake nationwide investor awareness programme so as to promote
proper understanding of the concept and working of mutual funds.
 To disseminate information on Mutual Fund Industry and to undertake
studies and research directly and/or in association with other bodies.
 To take regulate conduct of distributors including disciplinary actions
(cancellation of ARN) for violations of Code of Conduct.
 To protect the interest of investors/unit holders.
2. Importance and Significance of the Study

 To choose the best company for mutual funds investment between ICICI and
HDFC.
 To know the risks and returns associated with mutual funds.
 To make people aware of concept of mutual funds.
 To provide information regarding advantages and demerits of mutual funds.
 To advice where to invest and not to invest.
 To provide information regarding types of mutual funds which is beneficial
for whom.

3. Objectives of the Study

It is necessary to specify the objective of the study. This is because the

specification of objectives will enable us to study various areas and aspects
with clarity.

 To analyze which provides better returns from ICICI and HDFC.

 To analyze the concepts and parameters of mutual funds.
 To know how many people are satisfied with their investments (in
ICICI or HDFC).
 To know people behavior regarding risk factors involved in mutual
funds.
 To know purpose and performance of investment in mutual fund.
 To study the risk and relationship with reference to mutual funds.

.
4. Hypotheses

1. Due to diversification, there will be a significant risk reduction in the

investment.

5. Research Methodology

A. Data Collection

There are two ways to collect date for the research, Primary data and
Secondary data.
(a) Primary Data:-
A primary data are those which are collected a fresh and for the first time
and for the purpose of the research and thus happens to be original in
nature.
Here, the Researcher will collect the primary data with the help of survey
method. A structured Questionnaire will be prepared for the existing
investors of mutual funds and their replies will be sought.

(b) Secondary Data:-

A secondary data are those which have been already collected by some
other agency and which is already processed and published and used for
their purposed. Generally speaking, Secondary data is the information
which is collected by some other person/ organization for its own need,
but latter used by others for different purpose.
Here, various books, magazines, journals, websites, reports, etc., which
are generated by mutual fund agencies.

B. Sampling and sample size

It represents whole population. It is the process of choosing the sample

from whole population. I have choose a sample of 10 Middle class people
who have invested in mutual funds as a sample.
 C. Limitations of the Study

No study is free from limitations. The limitations of this study can be

 Sample size taken is small.

 The study only conducts in one geographical area Jalgaon.
 Respondent bias and sampling errors.
 The study will be conduct only for less than a year.

6. Expected Contribution

This research work will cover the study of different mutual funds which are offers
by ICICI and HDFC. The study will put some light on the risks and returns
associated with the investments with these two firms.
This study will also help investors to choose the right funds of these two different
companies. This study will also improve the decision making capacity of the
investors about mutual funds.

7. Chapterisation

Chapter No.1:- Introduction to Topic.

Chapter No.2:- Introduction to Companies.
Chapter No.3:- Review of Literature.
Chapter No.4:- Need of Study, Scope of Study and Objectives of Study.
Chapter No.5:- Research Methodology.
Chapter No.6:- Data Analysis and Interpretation
Chapter No.7:- Findings, Limitations, Recommendations and Conclusion

Bibliography
Appendix

Sign of Research Candidate. Sign. Of Research Supervisor.