A

Summer Project Report On Scheme Analysis of HDFC Asset Management Company Ltd. A Summer Project Report Submitted in Partial Fulfillment of award of MBA Degree

Submitted To

S. K. Patel Institute of Management and Computer Studies (A Constituent of Kadi Sarva Vishwa Vidhyalaya) Gandhinagar, India

Submitted By Bhaumik Trivedi Jalpesh Malani

(113) (45)

Flow of presentation
Introduction Industry profile

Company profile
Research methodology Scheme analysis of HDFC mutual fund Suggestion Learning Conclusion bibliography

Introduction
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.

These is a substantial growth in the mutual fund market due to a 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.
Mutual funds combine various elements of liquidity, return and security in making themselves as the best possible alternative for the small investors in Indian market.

We have attempted to study various need expectations of small investors from different types of mutual funds available in the Indian market and identify the risk return perception with the purchase of Mutual Funds.

Industry profile
Again, high net-worth individuals accounted for 1.76 per cent of the

investor population in March 2012, yet their share of AUM was 26.6 per cent, compared to 23.7 per cent in September 2011. But retail investors, who make up 97.3 per cent of the investor population, accounted for a mere 27.4 per cent of the industry's AUM in March 2012, compared to 23.6 per cent in September last year. High net-worth investors with Rs 42,588 crore invested in equity funds displayed patience as nearly 40 per cent of their investments stayed invested for over 24 months according to AMFI data for March 2012. In September 2011, only 35.35 per cent of their investment stayed for more than 24 months. Volatility propelled by uncertainty, both on the domestic and global front, is the key reason why these investors have not churned their investments frequently.

Having seen a sharp downturn in equity markets in 2011, and with the higher interest environment, retail investors were attracted by debt oriented funds, which include gilt and liquid schemes. According to business today - value research study of 'india's best mutual funds', released in early April, equity mutual funds delivered average 20 per cent negative returns over one year period when debt funds gave positive returns of nearly 8 per cent. The 6.1 per cent and 13.8 per cent increase in folios of debt funds, over the last six and twelve months respectively, is a clear endorsement. in terms of aim, retail accounted for 6.15 per cent of total debt aim in march 2012, up from 4.8 per cent in September 2011 and 5 per cent in march 2011.

RESEARCH METHODOLOGY
OBJECTIVES: Objective of this study is to analyze the Past Performance of the various

Mutual Funds Schemes on the Basis of their Historical NAV, divident, performance and rating etc. This helps in understanding the performance of mutual fund schemes in terms of risk adjusted Return. DATA COLLECTION All the data used for the study was secondary data and primary. This data was collected from the following sources. Fund fact sheet Magazines Journals Internet Key information memorandum of various schemes Direct Contact

 METHODOLOGY Primary data collection: Face to Face Tele Calling Secondary data collection: It is collected from different website. This project is made

of more of secondary data.

Company profile
HDFC Asset Management Company Limited (AMC) Vision To be a dominant player in the Indian mutual fund space recognized for its

high levels of ethical and professional conduct and a commitment towards enhancing investor interests.
SPONSORS

Housing Development Finance Corporation Limited (Hdfc) Standard Life Investments Limited HDFC Trustee Company Ltd. HDFC Asset Management Company (AMC)

ORGANISATION OF A MUTUAL FUND

Registrar

SEBI
Custodian

Trust

AMC

GROWTH IN ASSETS UNDER MANAGEMENT

Top 10 AMCs by Average AUM (Rs billion)

Avg AUM April-June 2012

Franklin Templeton Mutual Fund 8% SBI Mutual fund 10% UTI Mutual fund 13% HDFC Mutual fund 20%

Reliance Mutual Fund 18% ICICI Prudential Mutual fund 16%

Birla Sun Life Mutual Fund 15%

 Advantage of mutual fund

Portfolio diversification Professional management Less risk Low transaction cost Liquidity Choice of scheme Transferability Flexibility Safety

Disadvantage of mutual fund

Risk and cost No guarantees No control

Scheme analysis of HDFC mutual fund

PERFORMANCE
1-Month Return (%)
3.89

Fund Name HDFC Balanced

6-Month Return (%)

13.31

1-Year Return (%)

1.86

3-Year Return (%)

19.45

5-Year Return (%)

12.42

HDFC Equity
HDFC Mid-Cap Opportunities HDFC Prudence HDFC TaxSaver HDFC Top 200

5.42
5.41 3.60 4.92 5.72

14.44
17.78 12.70 10.21 13.19

-7.28
-0.20 -0.67 -7.51 -4.81

17.09
24.36 18.67 16.02 14.03

9.14
10.23 11.43 6.60 10.53

30 HDFC Balanced

25

20

HDFC Equity

15

HDFC Mid-Cap Opportunities

10

HDFC Prudence

HDFC Taxsaver

0 Return (%) -5 1-Month Return (%) 6-Month Return (%) 1-Year Return (%) 3-Year Return (%) 5-Year HDFC Top 200

-10

NAV DETAIL
Fund Name NAV As on Jul 10, 2012 Jul 10, 2012 Jul 10, 2012 Jul 10, 2012 Jul 10, 2012 Jul 10, 2012 Chg. from previous 0.42 3.17 0.11 1.45 1.98 2.53 52 Weeks High 59.65 284.39 16.83 221.30 238.69 214.17 As on Feb 21, 2012 Jul 25, 2011 Jul 19, 2011 Jul 25, 2011 Jul 25, 2011 Jul 25, 2011 52 Weeks Low 50.07 215.06 13.11 183.13 189.27 168.05 As On Dec 20, 2011 Dec 20, 2011 Dec 20, 2011 Dec 20, 2011 Dec 20, 2011 Dec 20, 2011

HDFC Balanced-G HDFC Equity-G HDFC Mid-Cap Opportunities- G HDFC Prudence-G HDFC TaxSaver-G HDFC Top 200-G

59.25 262.17 16.49 217.20 219.86 202.98

Dividend declared (Rs/unit) hdfc equity hdfc top200 hdfc balance hdfc prudence fund fund fund fund 3.5 3.5 4 4 4 4 2.25 2.25 hdfc TaxSaver fund 6 6

date

2012 2011

2010
2009 2008

3.5
2.5 5

3
5.5 5

4
3 0

2.25
1.5 0

6
5 8

SNAPSHOT

SUGGESTIONS
An aggressive advertising campaigning should be there to encourage more people to invest. As some of the people think that mutual fund is risky so the company should show people the advantages of the mutual fund and how it is better than the other investment avenues. There is a great potential for the mutual fund because the people are ready to invest in the mutual as there is a positive responses. 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 final a huge business. Financial adviser should give proper guidance to the investors so that they can take advantage of mutual fund. Company should undertake the Campaigns, Road shows, Advertisement and other type of Publicity for the effective awareness of different schemes that are available in the market. The company should arrange seminars and presentations, giving detail idea about of securities and benefits of investment in mutual fund.

LEARNING
1st Weeks (Training sessions)
From the Starting Days the internship will go well and in training sessions the learned from the external guide so many and then after Appling in practical in selling mutual funds. In training study of mutual fund industries and about the concept of mutual funds and how working mutual fund and why people are not interested or interested in investing money in mutual funds. First 3 day learning of mutual fund industries than about HDFC mutual fund and other AMC, how all the organization will work and will generating portfolio. Some of day will go than after study of mutual fund schemes of HDFC mutual funds, like HDFC Equity fund, HDFC Top 200 Fund, HDFC Prudence Fund, HDFC Balanced Fund, HDFC TaxSaver, HDFC Gold Fund, HDFC Mid-Cap Opportunities Fund, HDFC Cash management Fund Etc.

 Also study like How many types of fund? What is mutual fund history? How mutual fund industries work? Which fund will be more risky and which will be more return given? Why people investing 2 or 3 Day in Liquid Fund? What is SIP & benefit of SIP? Why investing in SIP? What is a one year Bank FD rate, benefit of mutual fund? What is STP (Systematic transfer plan)? In six week, we pitched scheme to customer in the IDBI bank and had

called them out them who are interested we has taken followed up them. In seven week, we had gone to distributor (Poona investment) where we learned how to do tale calling and effective follow up. They gave us 150 to 200 telephone no. of different area every day and we had talk to customer and try to convince them for meet. Thus we have completed our sip with great learning and wonderful experience

CONCLUSION
This report is prepared to get the ideas of mutual fund and various schemes of HDFC. The general concept of the market study will help the different individuals to

invest in different investment tools as per their appetite. Through research study, it is very much visualized the present market trend opted by the selected number of people and their perception regarding Mutual Fund. Hence, from this report I conclude that people are more invest in Mutual Fund due to the stability and getting more diversified options. HDFC mutual fund is performing better than other mutual fund company. The people who do not invest in mutual fund basically fear that they are less secured as compared with other investments. Most of the investors who invest in Mutual Fund substitute the same against the Bank Deposits, insurance and other saving schemes. The investors are not willing to invest in mutual fund industry unless they are guaranteed about minimum returns. The increase in mutual fund and various schemes have left many investors confused as to which scheme to opt for even if they want to invest in mutual fund.

 The increase in Mutual fund and various schemes have increased

competition. Hence it has been remarked by many investors mutual funds are too busy trying to race against each other. As a result they lose their stabilizing factor in the market. Many investors are not aware about the asset allocation principles stated by renowned theorists of the mutual fund industry. The investors prefer investing more in banks and post office, which shows that investors want security, and assured returns. Others than Banks and post office the next preference of investors who go for risky preposition in shares and Mutual Funds. That is basically due to misconception that Mutual Fund Companies usually invest in equity market, which shakes trust of people in Mutual Fund. Majority of investors invested in open-ended schemes. The awareness level about HDFC assets Management Company is very low. As the investor prefers safe investment and want consistent return; they invest in debt schemes. Mutual funds are also preferred because of the cost effectiveness and higher income by investing in equity schemes. The banks mostly make the investments through the agents followed. The time frame of the investment by majority of the investors is open-ended schemes in which their money is not locked for 3 to 5 years.

BIBLIOGRAPHY
www.investsmartindia.com
www.amfiindia.com www.mutualfundsindia.com

www.valueresearchonline.com
www.investopedia.com www.hdfcfund.com www.wikepedia.org www.tflguide.com www.businesstoday.intoday.in/