Post on 10-Mar-2015
A
Report
On
comparative study on the
performance of hdfc and icici
prudential mutual funds
Submitted By:Shubhransu kumar patel
TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................................2
ACKNOWLEDGEMENTS...........................................................................................................................4
EXECUTIVE SUMMARY............................................................................................................................5
MUTUAL FUNDS IN INDIA........................................................................................................................6
STRUCTURE OF THE INDIAN MUTUAL FUND INDUSTRY ............................................................6RECENT TRENDS IN MUTUAL FUND INDUSTRY .............................................................................7
ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI).......................................................................9
THE THREE BASIC FEATURES OF MUTUAL FUNDS......................................................................11
HOW TO INVEST IN MUTUAL FUND....................................................................................................12
RIGHTS OF A MUTUAL FUND UNIT HOLDER .................................................................................13
ADVANTAGES OF MUTUAL FUND........................................................................................................15
LIMITATIONS OF MUTUAL FUNDS......................................................................................................18
PARTIES INVOLVED IN MUTUAL FUND DEALINGS.......................................................................19
FREQUENTLY USED TERMS..................................................................................................................20
NET ASSET VALUE (NAV) .................................................................................................................20SALE PRICE .........................................................................................................................................20REPURCHASE PRICE.............................................................................................................................20REDEMPTION PRICE.............................................................................................................................20SALES LOAD...........................................................................................................................................20REPURCHASE OR ‘BACK-END’ LOAD ..............................................................................................21SYSTEMATIC INVESTMENT PLAN (SIP)...........................................................................................21SYSTEMATIC WITHDRAWAL PLAN (SWP).......................................................................................21SYSTEMATIC TRANSFER PLAN (STP)...............................................................................................21EQUITY LINKED SAVING SCHEMES (ELSS).....................................................................................21THE GOOD PICKS...................................................................................................................................22
TYPES OF MUTUAL FUNDS....................................................................................................................25
BY STRUCTURE......................................................................................................................................25B Y I NVESTMENT O BJECTIVE .............................................................................................................................2 6 OTHER SCHEMES...................................................................................................................................27S PECIAL S CHEMES ..........................................................................................................................................2 8
PLANS OF MUTUAL FUNDS....................................................................................................................29
G ROWTH PLAN ...............................................................................................................................................2 9 D IVIDEND P LAN .............................................................................................................................................2 9
BASIS OF COMPARISON OF VARIOUS SCHEMES OF MUTUAL FUNDS.....................................31
1 BETA.....................................................................................................................................................31
2 ALPHA..................................................................................................................................................31
3 R-SQUARED.........................................................................................................................................32
4 SHARPE RATIO...................................................................................................................................32
5 TREYNOR RATIO................................................................................................................................33
6 STANDARD DEVIATION...................................................................................................................33
7 NAV......................................................................................................................................................33
ANALYSIS OF TOP 10 MUTUAL FUNDS...............................................................................................35
C OMPARISON OF TEN MUTUAL FUND SCHEMES OF HDFC M UTUAL F UND AND P RUDENTIAL ICICI M UTUAL F UND .....35
ASSET MANAGEMENT COMPANIES (AMCS)....................................................................................45
BRIEF DESCRIPTION ABOUT SOME OF THE AMCS IS:..................................................................46
FUTURE OF MUTUAL FUNDS IN INDIA..............................................................................................53
Contents1. Executive Summary
2. Objective of Study
3. Introduction - Mutual Fund in India
4. Growth & Performance of Mutual Fund in India
5. Structure of the Indian Mutual Fund Industry
6. Recent Trend in Mutual Fund Industry
7. Association of Mutual Fund in India (AMFI)
8. The Objectives of Association of Mutual Fund
9. The Sponsor of Association of Mutual Fund
10. The Three Basic Features of Mutual Fund
11. How to Invest in Mutual Fund
12. Rights of a Mutual Fund Unit Holder
13. Advantages of Mutual Fund
14. Limitations of Mutual Fund
15. Types of Mutual Funds
16. Plans For Mutual Fund
17. Information About HDFC Mutual Fund and ICICI Prudential Mutual Fund
18. Comparison of Mutual Fund
19. Asset Management Companies (AMCS)
20. Brief Description About Some of the AMCs
21. Conclusion 22. Findings23. Suggestion24. Bibliography
EXECUTIVE SUMMARY
This report gives one an insight into the mutual funds in
India. I have tried my level best to incorporate the readings and
the information.
The first section of this report talks about the different
types of mutual funds along with a brief description of AMFI, the
regulatory body of mutual funds.
The second section gives a definition of all the terms
which are frequently used while dealing in mutual funds. This
section also discusses all performance on which I have
analyzed different mutual fund schemes of Prudential ICICI
Mutual Fund and HDFC Mutual Fund.
OBJECTIVE OF THE STUDY
Main objectives of our study is:-
To know the growth and performance of mutual fund in
India.
Structure of the Indian mutual fund industry.
Steps for investment in mutual fund.
To know the performance of HDFC mutual fund and ICICI
Pru mutual fund.
To know the portfolio record of HDFC mutual fund
schemes and ICICI mutual fund schemes.
To supply information towards the investors regarding the
mutual fund in which they should invest.
Provide informations regarding Asset Management
Companies (AMCs).
MUTUAL FUNDS IN INDIA
A mutual fund is simply a financial intermediary that
allows a group of investors to pool their money together with a
predetermined investment objective. The mutual fund will have
a fund manager who is responsible for investing the pooled
money into specific securities (usually stocks or bonds). When
one invests in a mutual fund, he is buying shares (or portions)
of the mutual fund and becoming a shareholder of the fund.
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 a diversified,
professionally managed basket of securities at a relatively low
cost. The flow chart below describes broadly the working of a
mutual fund.
While the concept of individuals coming together to
invest money collectively is not new, the mutual fund in its
present form is a 20th century phenomenon. In fact, mutual
funds gained popularity only after the Second World War.
Globally, there are thousands of firms offering tens of
thousands of mutual funds with different investment
objectives. Today, mutual funds collectively manage almost
as much as or more money as compared to banks.
A draft offer document is to be prepared at the time of
launching the fund. Typically, it pre specifies the investment
objectives of the fund, the risk associated, the costs involved
in the process and the broad rules for entry into and exit from
the fund and other areas of operation.
In India, as in most countries, these sponsors need
approval from a regulator, SEBI (Securities exchange Board of
India) in our case. SEBI looks at track records of the sponsor
and its financial strength in granting approval to the fund for
commencing operations. A sponsor then hires an asset
management company to invest the funds according to the
investment objective. It also hires another entity to be the
custodian of the assets of the fund and perhaps a third one to
handle registry work for the unit holders (subscribers) of the
fund.
GROWTH AND PREFORMANCE OF
MUTUAL FUND
In India the mutual fund industry has been monopolized by
the unit trust of India ever since 1963. Now the commercial
banks like the SBI, Canada Bank, Indian Bank, Bank of India and
the Punjab national bank have entered in to the field. These
institutions have successfully launched a variety of schemes to
meet the diverse needs of millions of small investors. The UTI is
the countries largest mutual fund company with over 25 million
investors, accounting for nearly 10% of countries stock market
capitalization.
In India mutual funds have been preferred as an avenue
for investment by the house hold savers only from 1990’s.
The Indian mutual funds industry has evolved over distinct
stages.
The growth of mutual fund industry can be divided into 4
phases:-
Phase 1 –(1964-1987)
Phase 2 –(1987-1992)
Phase 3 –(1992-1997)
Phase 4 –(beyond 1997)
PHASE 1 –(1964-1987)
The mutual fund concept was introduced in India with the
setting up of UTI in 1963 which became operational in 1964
with the objective of mobilizing savings by sale of units and
investing them in corporate securities for maximizing yield and
capital appreciation.
It commenced with the launch of unit scheme and other
innovative schemes like income oriented and open ended
schemes.
UTI launched equity growth fund in 1986 which proved to
be an grand marketing success.
It launched India fund in1986 – the 1stIndian offshore fund.
UTI maintains its monopoly and growth till 1987.
PHASE 2 –(1987-1992)
This involved the entry of mutual fund companies
sponsored by nationalized banks and insurance companies.
In 1987 SBI mutual fund and Canada bank mutual fund
were set up. In 1988 UTI floated another offshore fund (Indian
growth fund) listed in New York stock exchange.
LIC, GIC, Nationalized banks, BOI, PNB, started its
operation in mutual fund by 1990.
In1989 1st regulatory guidelines wad issued by RBI for
mutual fund sponsored by banks and in1990 Govt. of India
issued guidelines for all mutual funds.
PHASE 3 –(1992-1997)
The year 1993 marked a turning point in the history of
mutual funds in India.
The SEBI issued the mutual fund regulation in january
1993.
Foreign and private domestic players were allowed entry
in the mutual fund industry.
Kothari group of companies, in joint venture with pioneer
as US funds company set up the 1st private mutual fund known
as the Kothari-pioneer mutual fund in 1993.
PHASE 4 –(BEYOND 1997)
The flow of fund into mutual fund increased due to more
positive sentiment in the capital market, significant, tax benefit
and improvement in the quality of investor services etc.
The Indian mutual fund industry has stagnated at around
rupees 1 lakh crore assets since 2000-01.
In 2001-02 90 new schemes were launched,74 of which
were open-ended and 16 were close-ended. There were 53
income schemes.
If mutual fund ensure good returns, quick liquidity and
safety and create a good report with the investors, their future
will be very bright.
STRUCTURE OF THE INDIAN MUTUAL
FUND INDUSTRY
The Indian mutual fund industry is dominated by the Unit
Trust of India which has a total corpus of Rs700bn collected
from more than 20 million investors. The UTI has many
funds/schemes in all categories i.e. equity, balanced, income
etc with some being open-ended and some being closed-
ended. The Unit Scheme 1964 commonly referred to as US 64,
which is a balanced fund, is the biggest scheme with a corpus
of about Rs200bn. UTI was floated by financial institutions and
is governed by a special act of Parliament. Most of its
investors believe that the UTI is government owned and
controlled, which, while legally incorrect, is true for all
practical purposes.
The second largest category of mutual funds is the ones
floated by nationalized banks. Can bank Asset Management
floated by Canara Bank and SBI Funds Management floated by
the State Bank of India are the largest of these. GIC AMC
floated by General Insurance Corporation and Jeevan Bima
Sahayog AMC floated by the LIC are some of the other
prominent ones. The aggregate corpus of funds managed by
this category of AMCs is about Rs150bn.
The third largest categories of mutual funds are the ones
floated by the private sector and by foreign asset management
companies. The largest of these are Prudential ICICI AMC and
Birla Sun Life AMC. The aggregate corpus of assets managed by
this category of AMCs is in excess of Rs250bn.
RECENT TRENDS IN MUTUAL FUND
INDUSTRY
The most important trend in the mutual fund industry is
the aggressive expansion of the foreign owned mutual fund
companies and the decline of the companies floated by
nationalized banks and smaller private sector players.
Many nationalized banks got into the mutual fund business
in the early nineties and got off to a good start due to the stock
market boom prevailing then. These banks did not really
understand the mutual fund business and they just viewed it as
another kind of banking activity.
Guaranteed returns and their parent organizations had to
bail out these AMCs by paying large amounts of money as the
difference between the guaranteed and actual returns. The
service levels were also very bad. Most of these AMCs have not
been able to retain staff, float new schemes etc. and it is
doubtful whether, barring a few exceptions, they have serious
plans of continuing the activity in a major way.
The experience of some of the AMCs floated by private
sector Indian companies was also very similar. They quickly
realized that the AMC business is a business, which makes
money in the long term and requires deep-pocketed support in
the intermediate years. Some have sold out to foreign owned
companies, some have merged with others and there is general
restructuring going on.
The foreign owned companies have deep pockets and
have come in here with the expectation of a long haul. They
can be credited with introducing many new practices such as
new product innovation, sharp improvement in service
standards and disclosure, usage of technology, broker
education and support etc. In fact, they have forced the
industry to upgrade itself and service levels of organizations
like UTI have improved dramatically in the last few years in
response to the competition provided by these.
Changing Regulations
The recent ruling by the Securities and Exchange Board of
India, SEBI, on the removal of entry loads on mutual fund (MF)
investments has brought appreciation as well as criticism from
different corners. Last year SEBI had already done away with
entry loads in cases where the investors directly invested in
mutual funds without going through an agent or a distributor.
Changing regulations is not a new trend in the mutual
fund industry; we have had previous rulings which seemed
difficult and cumbersome to implement at the time but have
been adopted by all affected parties over time. In 2001, SEBI
made AMFI (Association of Mutual Funds in India) certification
compulsory to sell MFs which was accepted after initial protest
from distributors. Similarly, a PAN (Permanent Account
Number) was made compulsory for all MF investments in 2007
and KYC (Know Your Customer) compliance was made
mandatory last year. In spite of all the objections, over time
everyone has accepted the changes, adapted to them and
moved on.
ASSOCIATION OF MUTUAL FUNDS IN
INDIA (AMFI)
With the increase in mutual fund players in India, a need
for mutual fund association in India was generated to function
as a non-profit organization. Association of Mutual Funds in
India (AMFI) was incorporated on 22nd August, 1995.
AMFI is an apex body of all Asset Management Companies
(AMC) which has been registered with SEBI. Till date all the
AMCs are that have launched mutual fund schemes are its
members. It functions under the supervision and guidelines of
its Board of Directors.
Association of Mutual Funds India has brought down the Indian
Mutual Fund Industry to a professional and healthy market with
ethical lines enhancing and maintaining standards. It follows
the principle of both protecting and promoting the interests of
mutual funds as well as their unit holders.
THE OBJECTIVES OF ASSOCIATION OF
MUTUAL FUNDS IN INDIA
The AMFI works with 30 registered AMCs of the country. It
has certain defined objectives which juxtaposes the guidelines
of its Board of Directors. The objectives are as follows:
This mutual fund association of India maintains a high
professional and ethical standard in all areas of operation of the
industry. It also recommends and promotes the top class
business practices and code of conduct which is followed by
members and related people engaged in the activities of
mutual fund and asset management. The agencies who are by
any means connected or involved in the field of capital markets
and financial services also involved in this code of conduct of
the association.
AMFI interacts with SEBI and works according to SEBIs
guidelines in the mutual fund industry. AMFI does represent the
Government of India, the Reserve Bank of India and other
related bodies on matters relating to the Mutual Fund Industry.
It develops a team of well qualified and trained Agent
distributors. It implements a programme of training and
certification for all intermediaries and other engaged in the
mutual fund industry.
AMFI undertakes all India awareness programme for investors
in order to promote proper understanding of the concept and
working of mutual funds.
At last but not the least association of mutual fund of India also
disseminate informations on Mutual Fund Industry and
undertakes studies and research either directly or in
association with other bodies.
THE SPONSOR OF ASSOCIATION OF
MUTUAL FUNDS IN INDIA
Bank Sponsored
SBI Fund Management Ltd.
BOB Asset Management Co. Ltd.
Canbank Investment Management Services Ltd.
UTI Asset Management Company Pvt. Ltd.
Institutions
GIC Asset Management Co. Ltd.
Jeevan Bima Sahayog Asset Management Co. Ltd.
Private Sector
Indian:-
BenchMark Asset Management Co. Pvt. Ltd.
Cholamandalam Asset Management Co. Ltd.
Credit Capital Asset Management Co. Ltd.
Escorts Asset Management Ltd.
JM Financial Mutual Fund
Kotak Mahindra Asset Management Co. Ltd.
Reliance Capital Asset Management Ltd.
Sahara Asset Management Co. Pvt. Ltd
Sundaram Asset Management Company Ltd.
Tata Asset Management Private Ltd.
Predominantly India Joint Ventures:
Birla Sun Life Asset Management Co. Ltd.
DSP Merrill Lynch Fund Managers Limited
HDFC Asset Management Company Ltd.
Predominantly Foreign Joint Ventures:
ABN AMRO Asset Management (I) Ltd.
Alliance Capital Asset Management (India) Pvt. Ltd.
Deutsche Asset Management (India) Pvt. Ltd.
Fidelity Fund Management Private Limited
Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.
HSBC Asset Management (India) Private Ltd.
ING Investment Management (India) Pvt. Ltd.
Morgan Stanley Investment Management Pvt. Ltd.
Principal Asset Management Co. Pvt. Ltd.
Prudential ICICI Asset Management Co. Ltd.
Standard Chartered Asset Mgmt Co. Pvt. Ltd.
THE THREE BASIC FEATURES OF
MUTUAL FUNDS
a) All mutual funds charge expenses. Whether they be
marketing, management or brokerage fees, fund expenses
are generally passed back to the investors.
b) Investors exercise no control over what securities the fund
buys or sells.
c) The buying and selling of securities within the mutual fund
portfolio generates capital gains and losses which are
passed back to investors even if they have not sold any of
their mutual fund shares.
HOW TO INVEST IN MUTUAL FUND
Step One -Identify your Investment needs
Your financial goals will vary, based on your age, lifestyle,
financial independence, family commitments, and level of
income and expenses among many other factors. Therefore,
the first step is to assess your needs. You can begin by defining
your investment objectives and needs which could be regular
income, buying a home or finance a wedding or educate your
children or a combination of all these needs, the quantum of
risk you are willing to take and your cash flow requirements.
Step Two -Choose the right Mutual Fund
The important thing is to choose the right mutual fund
scheme which suits your requirements. The offer document of
the scheme tells you its objectives and provides supplementary
details like the track record of other schemes managed by the
same Fund Manager. Some factors to evaluate before choosing
a particular Mutual Fund are the track record of the
performance of the fund over the last few years in relation to
the appropriate yardstick and similar funds in the same
category. Other factors could be the portfolio allocation, the
dividend yield and the degree of transparency as reflected in
the frequency and quality of their communications for selecting
the right scheme as per your specific requirements.
Step Three -Select the ideal mix of Schemes
Investing in just one Mutual Fund scheme may not meet
all your investment needs. You may consider investing in a
combination of schemes to achieve your specific goals.
Step Four -Invest regularly
The best approach is to invest a fixed amount at specific
intervals, say every month. By investing a fixed sum each
month, you buy fewer units when the price is higher and more
units when the price is low, thus bringing down your average
cost per unit. This is called rupee cost averaging and is a
disciplined investment strategy followed by investors all over
the world. You can also avail the systematic investment plan
facility offered by many open end funds.
Step Five-Start early
It is desirable to start investing early and stick to a regular
investment plan. If you start now, you will make more than if
you wait and invest later. The power of compounding lets you
earn income on income and your money multiplies at a
compounded rate of return.
Step Six -The final step
All you need to do now is to click for online application
forms of various mutual fund schemes and start investing. You
may reap the rewards in the years to come. Mutual Funds are
suitable for every kind of investor -whether starting a career or
retiring, conservative or risk taking, growth oriented or income
seeking.
RIGHTS OF A MUTUAL FUND UNIT
HOLDER
A unit holder in a Mutual Fund scheme governed by the SEBI
(Mutual Funds) Regulations is entitled to:
1 Receive unit certificates or statements of accounts
confirming the title within 6 weeks from the date of
closure of the subscription or within 6 weeks from the date
of request for a unit certificate is received by the Mutual
Fund.
2 Receive information about the investment policies,
investment objectives, financial position and general
affairs of the scheme.
3 Receive dividend within 42 days of their declaration and
receive the redemption or repurchase proceeds within 10
days from the date of redemption or repurchase.
4 Vote in accordance with the Regulations to:
Approve or disapprove any change in the fundamental
investment policies of the scheme, which are likely to
modify the scheme or affect the interest of the unit
holder. The dissenting unit holder has a right to redeem
the investment.
Change the Asset Management Company.
Wind up the schemes.
5. Inspect the documents of the Mutual Funds specified in
the scheme's offer document.
ADVANTAGES OF MUTUAL FUND
Professional Management
The idea behind a mutual fund is that individual investors
generally lack the time, the inclination or the skills to manage
their own investment. Thus mutual funds hire professional
managers to manage the investments for the benefit of their
investors in return for a management fee.
The organization that manages the investment is the
Asset Management Company (AMC). Employees of the AMC
who perform this role of managing investments are the fund
managers.
Diversification
The best mutual funds design their portfolios so individual
investments will react differently to the same economic
conditions. For example, economic conditions like a rise in
interest rates may cause certain securities in a diversified
portfolio to decrease in value. Other securities in the portfolio
will respond to the same economic conditions by increasing in
value. When a portfolio is balanced in this way, the value of the
overall portfolio should gradually increase over time, even if
some securities lose value.
Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps
you avoid many problems such as bad deliveries, delayed
payments and follow up with brokers and companies. Mutual
Funds save your time and make investing easy and convenient.
Low cost
Mutual fund expenses are often no more than 1.5 percent
of your investment. Expenses for Index Funds are less than
that, because index funds are not actively managed. Instead,
they automatically buy stock in companies that are listed on a
specific index.
Choice of Schemes
A mutual fund can, and typically does have several
schemes to cater to different investors preferences. The
individual could choose to hire a professional manager to
manage his money as per his investment and risk preferences.
Such personal treatment often referred to as Portfolio
Management Scheme (PMS).
Legal Framework
Since the investors are often not so well qualified to
invest, the mutual fund business is highly regulated. Broadly
the existing regulations are:
1 Pre-requisitions to start a mutual fund;
2 Permissible schemes and investments;
3 Control over marketing process;
4 Checks and balances in the legal structure;
5 Valuation of securities;
6 Level of operational flexibility to the professional
investors.
Tax Benefits
Dividend income from mutual fund units will be exempt from
income tax with effect from July 1, 1999. Further, investors can
get rebate from tax under section 88 of Income Tax Act, 1961
by investing in Equity Linked Saving Schemes of mutual funds.
Further benefits are also available under section 54EA and
54EB with regard to relief from long term capital gains tax in
certain specified schemes.
Return Potential
Mutual funds allow you to allocate investments assets across
different fund categories to achieve a variety of risk/reward
objectives thereby reducing overall portfolio risk. In other
words, the right way to benefit from Mutual funds is to balance
the risk as well as the potential to earn.
Liquidity
Open-end schemes offer liquidity through on-going sale and re-
purchase facility. Thus, the investor does not have to worry
about finding a buyer for his investment –a risk normally
associated with direct investment in the securities market.
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.
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.
Affordability
Investors individually may lack sufficient funds to invest in high-
grade stocks. A mutual fund because of its large corpus allows
even a small investor to take the benefit of its investment
strategy.
LIMITATIONS OF MUTUAL FUNDS
No Guarantees
No investment is risk free. If the entire stock market
declines in value, the value of mutual fund shares will go down
as well, no matter how balanced the portfolio. Investors
encounter fewer risks when they invest in mutual funds than
when they buy and sell stocks on their own. However, anyone
who invests through a mutual fund runs the risk of losing
money.
Fees and commissions
All funds charge administrative fees to cover their day-to-
day expenses. Some funds also charge sales commissions or
"loads" to compensate brokers, financial consultants, or
financial planners. Even if you don't use a broker or other
financial adviser, you will pay a sales commission if you buy
shares in a Load Fund.
Taxes
During a typical year, most actively managed mutual
funds sell anywhere from 20 to 70 percent of the securities in
their portfolios. If your fund makes a profit on its sales, you will
pay taxes on the income you receive, even if you reinvest the
money you made.
Management risk
When you invest in a mutual fund, you depend on the
fund's manager to make the right decisions regarding the
fund's portfolio. If the manager does not perform as well as you
had hoped, you might not make as much money on your
investment as you expected. Of course, if you invest in Index
Funds, you forego management risk, because these funds do
not employ managers.
Dilution
It's possible to have too much diversification. Because
funds have small holdings in so many different companies, high
returns from a few investments often don't make much
difference on the overall return. Dilution is also the result of a
successful fund getting too big. When money pours into funds
that have had strong success, the manager often has trouble
finding a good investment for all the new money.
TYPES OF MUTUAL FUNDS
Mutual fund schemes may be classified on the basis of its
structure and its investment objective.
BY STRUCTURE:-
Open-ended Funds
An open-end fund is one that is available for subscription
all through the year. These do not have a fixed maturity.
Investors can conveniently buy and sell units at Net Asset Value
("NAV") related prices. The key feature of open-end schemes is
liquidity.
Top five open-end schemes are:
Sundaram BNP Paribas Money Fund Super
Institutional Growth
15.0772
Templeton India Liquid Plus-Growth Plan 13.0721
HDFC Cash Management Fund - Savings Plan-
Growth Option
14.8842
SBI MICF CASH PLAN 16.0392
Fidelity Multi Manager Cash Fund-Growth Option 10.3436
Closed-ended Funds
A closed-end fund has a stipulated maturity period which
generally ranging from 3 to 15 years. The fund is open for
subscription only during a specified period. 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 they 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.
The top five close-ended funds are:
Prudential ICICI Fusion Fund-FII - Growth 9.05
Tata Equity Management Fund - Growth 10.2370
SBI Debt Fund Series-60 Days-1-Growth 10.0927
Sundaram BNP Paribas Fixed Term Plan
Series VII Growth
10.0737
Reliance Fixed Maturity Fund-Series-II-
Annual Plan Series-1
10.6576
Growth Option
Interval Funds
Interval funds combine the features of open-ended and close-
ended schemes. They are open for sale or redemption during
pre-determined intervals at NAV related prices.
BY INVESTMENT OBJECTIVE:-
Growth Funds
The aim of growth funds is to provide capital appreciation over
the medium to long-term. Such schemes normally invest a
majority of their corpus in equities. It has been proven that
returns from stocks, have outperformed most other kind of
investments held over the long term. Growth schemes are ideal
for investors having a long-term outlook seeking growth over a
period of time.
The top three worth considering funds are:
Reliance Diversified Power Sector Fund-
Growth-Growth
25.0016
Sundaram BNP Paribas India Leadership
Fund-Growth
23.1767
Magnum Equity Fund 25.84
Income Funds
The aim of income funds is to provide regular and steady
income to investors. Such schemes generally invest in fixed
income securities such as bonds, corporate debentures and
Government securities. Income Funds are ideal for capital
stability and regular income.
The top three income funds are:
Reliance Income Fund-Retail Plan - Growth
Plan Growth Option
22.321
Sundaram BNP Paribas Bond Saver-Growth 22.0890
SBI Magnum Income Fund-Growth 19.1812
Balanced Funds
The aim of balanced funds is to provide both growth and
regular income. Such schemes periodically distribute a part of
their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents.
In a rising stock market, the NAV of these schemes may not
normally keep pace, or fall equally when the market falls. These
are ideal for investors looking for a combination of income and
moderate growth.
The top three balanced funds are:
SBI Magnum Balanced Fund - Growth 29.04
HDFC Balanced Fund-Growth Plan 27.061
FT India Balanced Fund-Growth Plan 26.7482
Money Market Funds
The aim of money market funds is to provide easy
liquidity, preservation of capital and moderate income. These
schemes generally invest in safer short-term instruments such
as treasury bills, certificates of deposit, commercial paper and
inter-bank call money. Returns on these schemes may fluctuate
depending upon the interest rates prevailing in the market.
These are ideal for Corporate and individual investors as a
means to park their surplus funds for short periods.
Load Funds
A Load Fund is one that charges a commission for entry or
exit. That is, each time you buy or sell units in the fund, a
commission will be payable. Typically entry and exit loads
range from 1% to 2%. It could be worth paying the load, if the
fund has a good performance history.
No-Load Funds
A No-Load Fund is one that does not charge a commission
for entry or exit. That is, no commission is payable on purchase
or sale of units in the fund. The advantage of a no load fund is
that the entire corpus is put to work.
OTHER SCHEME:-
Tax Saving Schemes
These schemes offer tax rebates to the investors under
specific provisions of the Indian Income Tax laws as the
Government offers tax incentives for investment in specified
avenues. Investments made in Equity Linked Savings Schemes
(ELSS) and Pension Schemes are allowed as deduction u/s 88 of
the Income Tax Act, 1961. The Act also provides opportunities
to investors to save capital gains u/s 54EA and 54EB by
investing in Mutual Funds.
Special Schemes
Industry Specific Schemes
Industry Specific Schemes invest only in the industries
specified in the offer document. The investment of these funds
is limited to specific industries like InfoTech, FMCG, and
Pharmaceuticals etc.
Index Schemes
Index Funds attempt to replicate the performance of a
particular index such as the BSE Sensex or the NSE 50.
Sectoral Schemes
Sectoral Funds are those, which invest exclusively in a specified
industry or a group of industries or various segments such as
'A' Group shares or initial public offerings.
Various sectoral schemes are:
Pharma sector schemes
FMCG sector schemes
Service sector schemes
Infrastructural sector schemes
Bank sector schemes
Auto sector schemes, etc,
PLANS OF MUTUAL FUNDS
There are two types of plans. Those are:
1) Growth Plan
2) Dividend plan
Growth plan
A mutual fund whose aim is to achieve capital
appreciation by investing in growth stocks. They focus on
companies that are experiencing significant earnings or
revenue growth, rather than companies that pay out dividends.
The hope is that these rapidly growing companies will continue
to increase in value, thereby allowing the fund to reap the
benefits of large capital gains. In general, growth funds are
more volatile than other types of funds, rising more than other
funds in bull markets and falling more in bear markets.
Some growth plan schemes are:
Franklin India Prima Fund-Growth 161.99
Reliance Vision Fund-GROWTH PLAN-
Growth Option
140.74
HDFC Equity Fund-Growth Plan 116.694
Dividend Plan
Again dividend plan is sub divided into two parts:
Dividend reinvestment plan (DRIP)
An investment plan offered by some corporations enabling
shareholders to automatically reinvest cash dividends and
capital gains distributions, thereby accumulating more stock
without paying brokerage commissions. Many DRIPs also allow
the investment of additional cash from the shareholder, known
as an optional cash purchase. Unlike with a Direct Stock
Purchase Plan, with a DRIP the investor must purchase the first
share in the company through a brokerage. After that, the
company will take whatever dividends it would normally send
as a check and instead it will reinvest them to purchase more
shares in the company for you, all without charging a
commission. The only drawback is that the investor has no
control over when his/her money from the dividends is used to
purchase new stock in the company, which means he/she might
be buying new shares at suboptimal times. Also called Dividend
Reinvestment Programs.
Some dividend reinvestment schemes are:
Dividend payout plan
The ex-dividend date was created to allow all pending
transactions to be completed before the record date. If an
investor does not own the stock before the ex-dividend date,
he or she will be ineligible for the dividend payout. Further, for
all pending transactions that have not been completed by the
ex-dividend date, the exchanges automatically reduce the price
of the stock by the amount of the dividend. This is done
because a dividend payout automatically reduces the value of
the company (it comes from the company's cash reserves ), and
the investor would have to absorb that reduction in value
(because neither the buyer nor the seller are eligible for the
dividend).
Some dividend payout schemes are:
HDFC Equity Fund-Dividend Plan 34.841
Prudential ICICI Tax Plan-Dividend 24.05
Sundaram BNP Paribas S.M.I.L.E.Fund-
Dividend
12.8372
Information
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 Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.
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. 25.161 crore.
The present equity shareholding pattern of the AMC is as follows :
Particulars % of the paid up equity capital
Housing Development Finance Corporation Limited
60
Standard Life Investments Limited 40
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. The AMC had entered into an agreement with ZIC to acquire the said business, subject to necessary regulatory approvals.
On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual Fund have migrated to HDFC Mutual Fund on June 19, 2003. These Schemes have been renamed as follows:
Former Name New NameZurich India Equity Fund HDFC Equity Fund
Zurich India Prudence Fund HDFC Prudence FundZurich India Capital Builder Fund
HDFC Capital Builder Fund
Zurich India TaxSaver Fund HDFC TaxSaverZurich India Top 200 Fund HDFC Top 200 FundZurich India High Interest Fund HDFC High Interest FundZurich India Liquidity Fund HDFC Cash Management
FundZurich India Sovereign Gilt Fund
HDFC Sovereign Gilt Fund*
PRODUCTS
Equity / Growth Fund
Invest primarily in equity and equity related instruments.
Children's Gift Fund
Children's Gift Fund
Fixed Maturity Plan
Invest primarily in Debt / Money Market Instruments and Government Securities...
Liquid Funds
Provide high level of liquidity by investing in money market and debt instruments.
Debt/ Income Fund
Invest in money market and debt instruments and provide optimum balance of yield, ...
Quarterly Interval Fund
The primary objective of the Scheme is to generate regular income through investment..
AWARDS ACCOLADES
ICRA Mutual Fund Awards 2011
HDFC Mutual Fund was awarded the 'Star Fund House of
the Year' in the 'Equity' Category (from amongst 13 fund
houses) for the one year period ending December 31, 2010 at
ICRA Mutual Fund Awards 2011.
'Star Fund House of the Year Award' indicates top overall
performance within the eligible fund houses.
Past Performance is no guarantee of future results.
Please refer below the Award / Ranking Methodology
and Disclaimer for the Awards/ Rankings.
ICRA Gold Award for 'Best Performance' - Seven Star Fund
Ranking.
HDFC Prudence Fund has been ranked a "Seven Star
Fund" and has been awarded Gold Award for 'Best
Performance' in the category of Open Ended Balanced for one
year period ending December 31, 2010 (from amongst 28
schemes) at ICRA Mutual Fund Awards 2011.
HDFC Capital Builder Fund has been ranked a "Seven Star
Fund" and has been awarded Gold Award for 'Best
Performance' in the category of Open Ended Diversified
Equity - Aggressive for one year period ending December 31,
2010 (from amongst 83 schemes) at ICRA Mutual Fund
Awards 2011.
HDFC Equity Fund has been ranked a "Seven Star Fund"
and has been awarded Gold Award for 'Best Performance'
in the category of Open Ended Diversified Equity - Defensive for
one year period ending December 31, 2010 (from amongst
118 schemes) at ICRA Mutual Fund Awards 2011.
HDFC TaxSaver has been ranked a "Seven Star Fund" and
has been awarded Gold Award for 'Best Performance' in
the category of Open Ended Equity Linked Savings Schemes
(ELSS) for one year period ending December 31, 2010 (from
amongst 34 schemes) at ICRA Mutual Fund Awards 2011.
HDFC MF Monthly Income Plan - Long Term Plan has been
ranked a "Seven Star Fund" and has been awarded Gold
Award for 'Best Performance' in the category of Open
Ended Marginal Equity for one year period ending December
31, 2010 (from amongst 46 schemes) at ICRA Mutual Fund
Awards 2011.
HDFC Prudence Fund has been ranked a "Seven Star
Fund" and has been awarded Gold Award for 'Best
Performance' in the category of Open Ended Balanced for
three year period ending December 31, 2010 (from amongst
27 schemes) at ICRA Mutual Fund Awards 2011.
HDFC Short Term Plan has been ranked a "Seven Star
Fund" and has been awarded Gold Award for 'Best
Performance' in the category of Open Ended Debt – Short
Term for three year period ending December 31, 2010 (from
amongst 18 schemes) at ICRA Mutual Fund Awards 2011.
HDFC Equity Fund has been ranked a "Seven Star Fund"
and has been awarded Gold Award for 'Best Performance' in
the category of Open Ended Diversified Equity - Defensive for
three year period ending December 31, 2010 (from amongst
95 schemes) at ICRA Mutual Fund Awards 2011.
Past Performance is no guarantee of future results.
Please refer below the Award / Ranking Methodology
and Disclaimer for the Awards / Rankings.
'Seven Star Fund' Ranking: Best Performance amongst 5-Star
Funds in the respective category.
'ICRA 7-Star Gold Award': The best performing fund amongst
the 5-Stars is ranked as a 7-Star Fund provided it's fund size is
greater than the average of the respective category or Rs. 100
crores, whichever is lower.
ICRA Five Star Fund Ranking
HDFC Children's Gift Fund - Investment Plan has been
ranked a "Five Star Fund" indicating performance among top
4.6% in the category of Open Ended Balanced for one year
period ending December 31, 2010 (from amongst 28 schemes)
at ICRA Mutual Fund Awards 2011.
HDFC Balanced Fund has been ranked a "Five Star Fund"
indicating performance among top 4.6% in the category of
Open Ended Balanced for one year period ending December
31, 2010 (from amongst 28 schemes) at ICRA Mutual Fund
Awards 2011.
HDFC Growth Fund has been ranked a "Five Star Fund"
indicating performance among top 4.6% in the category of
Open Ended Diversified Equity - Defensive for one year period
ending December 31, 2010 (from amongst 118 schemes) at
ICRA Mutual Fund Awards 2011.
HDFC Long Term Advantage Fund has been ranked a "Five
Star Fund" indicating performance among top 4.6% in the
category of Open Ended Equity Linked Savings Schemes (ELSS)
for one year period ending December 31, 2010 (from amongst
34 schemes) at ICRA Mutual Fund Awards 2011.
HDFC Cash Management Fund-Treasury Advantage Plan
- Retail Option has been ranked a "Five Star Fund"
indicating performance among top 4.6% in the category of
Open Ended Liquid for one year period ending December 31,
2010 (from amongst 54 schemes) at ICRA Mutual Fund
Awards 2011.
HDFC Children's Gift Fund - Savings Plan has been ranked
a "Five Star Fund" indicating performance among top 4.6% in
the category of Open Ended Marginal Equity for one year
period ending December 31, 2010 (from amongst 46 schemes)
at ICRA Mutual Fund Awards 2011.
HDFC Multiple Yield Fund - Plan 2005 has been ranked a
"Five Star Fund" indicating performance among top 4.6% in
the category of Open Ended Marginal Equity for one year
period ending December 31, 2010 (from amongst 46 schemes)
at ICRA Mutual Fund Awards 2011.
HDFC Balanced Fund has been ranked a "Five Star Fund"
indicating performance among top 4.6% in the category of
Open Ended Balanced for three year period ending December
31, 2010 (from amongst 27 schemes) at ICRA Mutual Fund
Awards 2011.
HDFC Multiple Yield Fund - Plan 2005 has been ranked a
"Five Star Fund" indicating performance among top 4.6% in
the category of Open Ended Marginal Equity for three year
period ending December 31, 2010 (from amongst 45schemes)
at ICRA Mutual Fund Awards 2011.
HDFC TaxSaver has been ranked a "Five Star Fund"
indicating performance among top 4.6% in the category of
Open Ended Equity Linked Savings Schemes (ELSS) for three
year period ending December 31, 2010 (from amongst 23
schemes) at ICRA Mutual Fund Awards 2011.
ICICI PRUDENTIAL ASSET MANAGEMENT
COMPANY LIMITED (AMC):-
ICICI Prudential Asset Management Company enjoys the
strong parentage of Prudential plc, one of UK's largest players
in the insurance & fund management sectors and ICICI Bank, a
well-known and trusted name in financial services in India. ICICI
Prudential Asset Management Company, in a span of just over
eight years, has forged a position of pre-eminence in
the Indian Mutual Fund industry as one of the largest asset
management companies in the country with average assets
under management of Rs. 69,754.78 Crore (as of sept 30,
2010). The Company manages a comprehensive range of
schemes to meet the varying investment needs of its
investors spread across 230 cities in the country.
Key indicators
At inception - May 1998 As on September 30, 2010
Average Assets Under
ManagementRs. 160 Crore Rs. 69,754.78 Crore
Number of Funds Managed 2 40
SPONSORS
Securities and Exchange Board of India, vide its
letter no. MFD/PM/567/02 dated June 4, 2002, has
accorded its approval in recognizing ICICI Bank Ltd.
as a co-sponsor consequent to the merger of ICICI
Ltd. with ICICI Bank Ltd.
ICICI Bank is India's second-largest bank with total
assets of Rs. 3,997.95 billion (US$ 100 billion) at
March 31, 2008 and profit after tax of Rs. 41.58
billion for the year ended March 31, 2008. ICICI Bank
is second amongst all the companies listed on the
Indian stock exchanges in terms of free float market
capitalization Free float holding excludes all
promoter holdings, strategic investments and
cross holdings among public sector entities. The
Bank has a network of about 1,308 branches and
3,950 ATMs in India and presence in 18 countries.
ICICI Bank offers a wide range of banking products
and financial services to corporate and retail
customers through a variety of delivery channels
and through its specialised subsidiaries and affiliates
in the areas of investment banking, life and non-life
insurance, venture capital and asset management.
The Bank currently has subsidiaries in the United
Kingdom, Russia and Canada, branches in Unites
States, Singapore, Bahrain, Hong Kong, Sri Lanka,
Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates,
China, South Africa, Bangladesh, Thailand, Malaysia
and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany. ICICI Bank's
equity shares are listed in India on Bombay Stock
Exchange and the National Stock Exchange of India
Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange
(NYSE). (Source: Overview at www.icicibank.com).
Headquartered in London, Prudential plc and its
affiliated companies together constitute one of the
world's leading financial services groups. Prudential
provides insurance and financial services in a
number of markets around the world, including in
Asia, the US, the UK, Europe and the Middle East.
Founded in 1848, the company has £249 billion in
funds under management (as of 31 December 2008)
and more than 21 million customers worldwide.
Prudential has been writing life insurance in the
United Kingdom for 160 years and has had the
largest long-term fund in the United Kingdom, for
over a century. In the United Kingdom, Prudential is
a leading retirement savings and income solutions
and life assurance provider. M&G is Prudential's
fund management business in the United Kingdom
and Europe, with almost £140 billion in funds under
management (as of 31 December 2008). In the
United States, Jackson National Life, which we
acquired in 1986, is one of the largest life insurance
companies providing retirement savings and income
solutions.
In Asia, Prudential is the leading Europe-based life
insurer in terms of market coverage and number of
top three ranking positions. It is also one of the
largest and most successful fund managers in Asia
with more top five market rankings than any other
regional player. Today, Prudential has life insurance
and fund management operations spanning 13
diverse markets in Asia.
Prudential plc is incorporated and with its principal
place of business in the United Kingdom. It is not
affiliated in any manner with Prudential Financial,
Inc., a company whose principal place of business is
in the United States.
COMPARISION OF MUTUAL FUNDS
COMPARISON OF MUTUAL FUND SCHEMES OF
HDFC MUTUAL FUNDAND PRUDENTIAL ICICI
MUTUAL FUND :-
1. Comparison between HDFC Top 200 Fund and ICICI
Prudential Focused Blue-chip Equity Fund :-
HDFC Top 200 Fund ICICI Prudential Focused Bluechip
Equity Fund
Objective To generate longterm capitalappreciation from aportfolio of equityand equity-linkedinstruments primarilydrawn from thecompanies in BSE200 index.
To generate longterm capitalappreciation from aportfolio of equityand equity-linkedinstruments primarilydrawn from thecompanies in BSE200 index.
Fund HDFC Mutual Fund Prudential ICICI Mutual Fund
AMC HDFC Asset Management Company Ltd.
Prudential ICICI Asset Management Co. Ltd.
Category Equity Equity
Type Of Scheme
Open Ended Open Ended
Inception Date 11/10/1996 23/05/2008
Net Assets (Rs.Crores)
Rs. 9,481.82 crores as on 28/02/2011
Rs. 1,658.17 crores as on 31/12/2010
Minimum Investment (Rupees)
5000 5000
PERFORMANCE ANALYSIS DIAGRAM :-
INTERPRETATION :-
Regarding Benchmark Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Top 200 fund is
-5.34% where ICICI Pru Focused Bluechip Equity Fund is -1.4%.
The performance in last 1 year of HDFC Top 200 fund is
5.48% where ICICI Pru Focused Bluechip Equity Fund is 8.3%.
The performance since inception of HDFC top 200 fund is
14.45% where ICICI Pru Focused Bluechip Equity Fund is 2.75%.
Regarding Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Top 200 fund is
-3.91% where ICICI Pru Focused Bluechip Equity Fund is -0.13%.
The performance in last 1 year of HDFC Top 200 fund is
13.74% where ICICI Pru Focused Bluechip Equity Fund is
15.93%.
The performance since inception of HDFC top 200 fund is
24.74% where ICICI Pru Focused Bluechip Equity Fund is
16.92%.
FINDINGS :-
According to study ICICI Pru Focused Bluechip Equity Fund
is a better fund for investment as comparison to HDFC Top 200
fund.
PORTFOLIO CHART:-
INTERPRETATION :-
HDFC Top 200 fund invest their 96% in equity and equity
related holdings, 3.65% in other cash, cash equivalent and net
current assets.
Where ICICI Pru Focused Blue chip equity fund invest their
97% in equity and equity related holdings and 3% in other
current assets.
2. Comparison between HDFC Equity Fund-Dividend
and ICICI Pru Dynamic Fund-Dividend :-
HDFC Equity Fund-
Dividend
Prudential ICICI
Dynamic Fund-
Dividend
Objective Objective: These
funds diversify their
portfolio evenly
across stocks and
industry sectors.
Objective: These
funds diversify their
portfolio evenly
across stocks and
industry sectors.
Fund HDFC Mutual Fund Prudential ICICI
Mutual Fund
AMC HDFC Asset
Management
Company Ltd.
Prudential ICICI
Asset Management
Co. Ltd.
Category Equity - Diversified Equity - Diversified
Type Of Scheme Open Ended Open Ended
Inception Date 01/01/1995 31/10/2002
Net Assets
(Rs.Crores)
Rs.8271.94 crore as
on 28/02/2011
Rs. 2,785.39
croresas on
31/12/2010
Minimum
Investment(Rupe
es)
5000 5000
PERFORMANCE ANALYSIS DIAGRAM:
INTERPRETATION :-
Regarding Benchmark Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Equity Fund is -
6.67% where ICICI Pru Dynamic Fund is -1.4%.
The performance in last 1 year of HDFC Equity Fund is 2.88%
where ICICI Pru Dynamic Fund is 8.3%.
The performance in last 3 years of HDFC Equity Fund is -1.2%
where ICICI Pru Dynamic Fund is 0.3%.
The performance in last 5 years of HDFC Equity Fund is 9.81%
where ICICI Pru Dynamic Fund is 11.64%.
The performance since inception of HDFC Equity Fund is 9.54%
where ICICI Pru Dynamic Fund is 22.98%.
Regarding Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Equity Fund is -
4.74% where ICICI Pru Dynamic Fund is 0.74%.
The performance in last 1 year of HDFC Equity Fund is 16.87%
where ICICI Pru Dynamic Fund is 13.41%.
The performance in last 3 years of HDFC Equity Fund is 11.54%
where ICICI Pru Dynamic Fund is 8.74%.
The performance in last 5 years of HDFC Equity Fund is 17.45%
where ICICI Pru Dynamic Fund is 17.25%.
The performance since inception of HDFC Equity Fund is
22.36% where ICICI Pru Dynamic Fund is 32.21%.
FINDINGS :
According to study ICICI Pru Dynamic Equity Fund is better
fund for investment as comparison to HDFC Equity Fund.
PORTFOLIO CHART:-
INTERPRETATION :-
HDFC Equity Fund invest their 50.58% in equity and equity
related holdings, 0.32% in cash margin, 3.30% in other cash
and cash equivalent and 45.80% in top ten equity holdings.
Where ICICI Pru Dynamic Equity Fund invest their 37% in
top ten equity holdings, 56% in other equity holdings and 7% in
other current assets.
3. Comparison between HDFC Equity Fund-Growth and
ICICI Prudential Growth Plan :-
HDFC Equity Fund-
Growth
ICICI Prudential
Growth plan
Objective Objective: These
funds diversify their
portfolio evenly
across stocks and
industry sectors.
Objective: These
funds diversify their
portfolio evenly
across stocks and
industry sectors.
Fund HDFC Mutual Fund Prudential ICICI
Mutual Fund
AMC HDFC Asset
Management
Company Ltd.
Prudential ICICI
Asset Management
Co. Ltd.
Category Equity - Diversified Equity - Diversified
Type Of Scheme Open Ended Open Ended
Inception Date 11/09/2000 09/07/1998
Net Assets
(Rs.Crores)
Rs.1216.12 crores as
on 28/02/2011
Rs. 3 83.62
croresas on
31/12/2010
Minimum
Investment(Rupe
es)
5000 5000
PERFORMANCE ANALYSIS DIAGRAM:-
INTERPRETATION :-
Regarding Benchmark Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Growth Fund is -
0.97% where ICICI Pru Growth Plan is -1.4%.
The performance in last 1 year of HDFC Growth Fund is 8.44%
where ICICI Pru Growth Plan is 8.3%.
The performance in last 3 years of HDFC Growth Fund is 0.0%
where ICICI Pru Growth Plan is 0.3%.
The performance in last 5 years of HDFC Growth Fund is
11.43% where ICICI Pru Growth Plan is 11.64%.
The performance since inception of HDFC Growth Fund is
13.58% where ICICI Pru Growth Plan is 14.51%.
Regarding Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Growth Fund is -
5.48% where ICICI Pru Growth Plan is 0.42%.
The performance in last 1 year of HDFC Growth Fund is 15.98%
where ICICI Pru Growth Plan is 10.03%.
The performance in last 3 years of HDFC Growth Fund is 5.95%
where ICICI Pru Growth Plan is 3.8%.
The performance in last 5 years of HDFC Growth Fund is 17.4%
where ICICI Pru Growth Plan is 12.39%.
The performance since inception of HDFC Growth Fund is
22.17% where ICICI Pru Growth Plan is 22.39%.
FINDINGS :
According to study HDFC Growth Fund is better fund for
investment as comparison to ICICI Pru Growth Plan.
PORTFOLIO CHART:-
Interpretation :-
HDFC Growth Plan invest their 98% in equity and equity
holdings and 2% in cash, cash equivalent and net current
assets.
Where ICICI Pru Growth Plan invest their 23% in equity
and equity related holdings and 77% in other current assets.
4. Comparison between HDFC Tax Saver and ICICI
Prudential Tax Saver:-
HDFC
TaxSaver
ICICI Prudential
Tax Plan
Objective To achieve long term
growth of
capital.
To achieve long
term growth of
capital.
Fund HDFC Mutual Fund Prudential ICICI
Mutual Fund
AMC HDFC Asset
Management
Company Ltd.
Prudential ICICI
Asset Management
Co. Ltd.
Category Equity Equity
Type Of Scheme Open Ended Open Ended
Inception Date 31/03/1996 19/08/1999
Net Assets
(Rs.Crores)
Rs.2767.11crore as
on 28/02/2011
Rs. 1,320.28
croresas on
31/12/2010
Minimum
Investment(Rupe
es)
500 500
PERFORMANCE ANALYSIS DIAGRAM:-
INTERPRETATION :-
Regarding Benchmark Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Tax Saver is -6.67%
where ICICI Pru Tax Plan is -1.4%.
The performance in last 1 year of HDFC Tax Saver is 2.88%
where ICICI Pru Tax Plan is 8.3%.
The performance in last 3 years of HDFC Tax Saver is -1.2%
where ICICI Pru Tax Plan is 0.3%.
The performance in last 5 years of HDFC Tax Saver is 9.81%
where ICICI Pru Tax Plan is 11.64%.
The performance since inception of HDFC Tax Saver is 12.84%
where ICICI Pru Tax Plan is 12.68%.
Regarding Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Tax Saver is -5.86%
where ICICI Pru Tax Plan is -3.38%.
The performance in last 1 year of HDFC Tax Saver is 12.53%
where ICICI Pru Tax Plan is 9.99%.
The performance in last 3 years of HDFC Tax Saver is 8.05%
where ICICI Pru Tax Plan is 7.8%.
The performance in last 5 years of HDFC Tax Saver is 13.38%
where ICICI Pru Tax Plan is 11.19%.
The performance since inception of HDFC Tax Saver is 30.81%
where ICICI Pru Tax Plan is 25.11%.
FINDINGS :
According to study ICICI Pru Tax Plan is better fund for
investment as comparison to HDFC Tax Saver.
PORTFOLIO CHART:-
Interpretation :-
HDFC Tax Saver invest their 17% in top ten holdings, 20%
in other equity holdings and 63% in current assets.
Where ICICI Prudential Tax Plan invest their 16% in top ten
holdings, 24% in other equity holdings and 60% in current
assets.
5. Comparison Between HDFC Balanced Fund and
Prudential ICICI Balanced Plan:-
HDFC Balanced Fund Prudential ICICI Balanced Plan
Objective To generate capitalappreciation along withcurrent income from acombined portfolio of equity& equity-related and debt &money market instruments.
To generate capitalappreciation along withcurrent income from acombined portfolio of equity& equity-related and debt &money market instruments.
Fund HDFC Mutual Fund Prudential ICICI Mutual Fund
AMC HDFC Asset Management Company Ltd.
Prudential ICICI Asset Management Co. Ltd.
Category Hybrid (Equity) Hybrid (Equity)
Type Of Scheme Open Ended Open Ended
Inception Date 11/09/2000 03/11/1999
Net Assets (Rs.Crores)
Rs.238.0279 crores as on 28/02/2011
Rs. 274.21 crores as on 31/12/2010
Minimum Investment(Rupees)
5000 5000
PERFORMANCE ANALYSIS DIAGRAM:-
INTERPRETATION :-
Regarding Benchmark Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Balanced Fund is
0.02% where ICICI Balanced Fund is 0.02%.
The performance in last 1 year of HDFC Balanced Fund is
7.49% where ICICI Balanced Fund is 7.49%.
The performance in last 3 years of HDFC Balanced Fund is
3.51% where ICICI Balanced Fund is 3.51%.
The performance in last 5 years of HDFC Balanced Fund is
10.56% where ICICI Balanced Fund is 10.56%.
The performance since inception of HDFC Balanced Fund is
0.0% where ICICI Balanced Fund is 0.0%.
Regarding Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Balanced Fund is -
1.63% where ICICI Balanced Fund is 0.28%.
The performance in last 1 year of HDFC Balanced Fund is
15.3% where ICICI Balanced Fund is 10.78%.
The performance in last 3 years of HDFC Balanced Fund is
11.6% where ICICI Balanced Fund is 1.31%.
The performance in last 5 years of HDFC Balanced Fund is
13.96% where ICICI Balanced Fund is 9%.
The performance since inception of HDFC Balanced Fund is
17.06% where ICICI Balanced Fund is 13.9%.
FINDINGS :
According to study ICICI Balanced Fund is better for investment
as comparison to HDFC Balanced Fund.
PORTFOLIO CHART:-
Interpretation :-
HDFC Balanced Fund invest their 14% in top 10 equity
holdings, 15% in other equity holdings and 71% in Govt.
securities, money market instrument and other credit
exposure.
Where ICICI Pru Balanced Fund invest their 68% in equity
holdings, 31% in debt. holdings and -1% in other current assets.
6. Comparison Between HDFC Core & Satellite and
Prudential ICICI Emerging Star Fund:-
HDFC Core &
Satellite Fund
Prudential ICICI
Emerging Star Fund
Objective To generate capital
appreciation through
equity investment in
companies whose
shares are quoting
at prices below their
true value.
To generate capital
Appreciation through
equity investment in
companies whose
shares are quoting at
prices below their
true value.
Fund HDFC Mutual Fund Prudential ICICI
Mutual Fund
AMC HDFC Asset
Management
Company Ltd.
ICICI Investment
Management
Company Ltd.
Category Equity - Diversified Equity - Diversified
Scheme Plan Dividend Dividend
Type Of Scheme Open Ended Open Ended
Inception Date 17/09/2004 28/10/2004
Net Assets
(Rs.Crores)
394.80 as on
28/02/2011
414.74 as on
31/12/2011
Minimum
Investment(Rupees
5000 5000
)
PERFORMANCE ANALYSIS DIAGRAM:-
INTERPRETATION :-
The performance in last 1 year of HDFC Core and Satellite
Fund is 5.48% where ICICI Emerging S.T.A.R. Fund is 3.44%.
The performance in last 3 years of HDFC Core and Satellite
Fund is -0.82% where ICICI Emerging S.T.A.R. Fund is 2.66%.
The performance in last 5 years of HDFC Core and Satellite
Fund is 11.03% where ICICI Emerging S.T.A.R. Fund is 11.85%.
The performance since inception of HDFC Core and Satellite
Fund is 18.66% where ICICI Emerging S.T.A.R. Fund is 18.9%.
Regarding Benchmark Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Core and Satellite
Fund is -5.34% where ICICI Emerging S.T.A.R. Fund is -11.64%.
Regarding Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Core and Satellite
Fund is -6.24% where ICICI Emerging S.T.A.R. Fund is -15.83%.
The performance in last 1 year of HDFC Core and Satellite Fund
is 12.2% where ICICI Emerging S.T.A.R. Fund is -0.93%.
The performance in last 3 years of HDFC Core and Satellite
Fund is 6.12% where ICICI Emerging S.T.A.R. Fund is -7.04%.
The performance in last 5 years of HDFC Core and Satellite
Fund is 12.3% where ICICI Emerging S.T.A.R. Fund is 6.16%.
The performance since inception of HDFC Core and Satellite
Fund is 22.89% where ICICI Emerging S.T.A.R. Fund is 18.75%.
FINDINGS :
According to study HDFC Core and Satellite Fund is better for
investment as comparison to ICICI Emerging S.T.A.R. Fund.
PORTFOLIO CHART:-
INTERPRETATION :-
HDFC Core and Satellite Fund invest their 13% in top ten
holdings, 85% in equity and equity related holdings and 2% in
Cash, cash equivalent and net current assets.
Where ICICI Pru Emerging S.T.A.R Fund invest their 16% in
top ten holdings, 25% in other equity related holdings and 59%
in other current assets.
7. Comparison between HDFC Index Nifty Plan and
Prudential ICICI Index Fund:-
HDFC Index Nifty
Plan
Prudential ICICI
Index Fund
Objective To generate returns
that are
commensurate with
the performance of
the Nifty, subject to
tracking errors.
To generate returns
that are
commensurate with
the performance of
the Nifty, subject to
tracking errors.
Fund HDFC Mutual Fund Prudential ICICI
Mutual Fund
AMC HDFC Asset
Management
Company Ltd.
Prudential ICICI
Asset Management
Co. Ltd.
Category Equity - Index Fund Equity - Index Fund
Scheme Plan Growth Growth
Type Of Scheme Open Ended Open Ended
Inception Date 17/7/2002 26/02/2002
Net Assets
(Rs.Crores)
55.42 as on
28/02/2011
88.77 as on
31/12/2010
Minimum
Investment(Rupe
es)
5000 5000
PERFORMANCE ANALYSIS DIAGRAM:-
INTERPRETATION :-
Regarding Benchmark Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Nifty Index Fund is -
1.09% where ICICI Nifty Index Plan is -1.4%.
The performance in last 1 year of HDFC Nifty Index Fund is
9.46% where ICICI Nifty Index Plan is 9.18%.
The performance in last 3 years of HDFC Nifty Index Fund is
1.35% where ICICI Nifty Index Plan is 0.3%.
The performance in last 5 years of HDFC Nifty Index Fund is
12.96% where ICICI Nifty Index Plan is 11.64%.
The performance since inception of HDFC Nifty Index Fund is
22.76% where ICICI Nifty Index Plan is 18.12%.
Regarding Return (upto 28 th Feb 2011)
The performance in last 6 months of HDFC Nifty Index Fund is -
2.07% where ICICI Nifty Index Plan is -1.3%.
The performance in last 1 year of HDFC Nifty Index Fund is
7.51% where ICICI Nifty Index Plan is 9.18%.
The performance in last 3 years of HDFC Nifty Index Fund is
-0.87% where ICICI Nifty Index Plan is 1.22%.
The performance in last 5 years of HDFC Nifty Index Fund is
8.7% where ICICI Nifty Index Plan is 12.89%.
The performance since inception of HDFC Nifty Index Fund is
18.97% where ICICI Nifty Index Plan is 19.43%.
FINDINGS :
According to study ICICI Nifty Index Plan is better for
investment as comparison to HDFC Nifty Index Fund.
PORTFOLIO CHART:-
Interpretation :-
HDFC Nifty Index Fund invest their 52% in top ten equity
holdings, 39% in other equity holdings, 8% in cash margin /
earmarked cash for futures and options and 1% in other cash,
cash equivalent and net current assets.
Where ICICI Pru Nifty Plan invest their 97% in equity
holdings and 3% in short-term and other current assets.
ASSET MANAGEMENT COMPANIES
(AMCs)
A company formed primarily to act as a manager of
another entity, distance control of the other entity from the
owners, and absorb liabilities arising from the management
function. Company that invests the pooled funds of retail
investors for a fee. By aggregating the funds of a large number
of small investors into a specific investments (in line with the
objectives of the investors), an investment company gives
individual investors access to a wider range of securities than
the investors themselves would have been able to access. Also,
individual investors should be able to save on trading costs
since the investment company is able to gain economies of
scale in operations.
AMCs operating currently are:
Name of the AMC Nature of ownership
Alliance Capital Asset Management (I) Private Limited
Private foreign Birla Sun Life Asset Management Company
Limited Private Indian Bank of Baroda Asset Management
Company Limited Banks Bank of India Asset Management
Company Limited Banks C anbank Investment Management
Services Limited Banks Cholamandalam Cazenove Asset
Management Company Limited Private foreign Dundee Asset
Management Company Limited Private foreign DSP Merrill
Lynch Asset Management Company Limited Private foreign
Escorts Asset Management Limited Private Indian First India
Asset Management Limited Private Indian GIC Asset
Management Company Limited Institutions IDBI Investment
Management Company Limited Institutions Indfund
Management Limited Banks ING Investment Asset
Management Company Private Limited Private foreign
J M Capital Management Limited Private Indian Jardine
Fleming (I) Asset Management Limited Private foreign Kotak
Mahindra Asset Management Company Limited Private Indian
Kothari Pioneer Asset Management Company Limited Private
Indian Jeevan Bima Sahayog Asset Management Company
Limited Institutions Morgan Stanley Asset Management
Company Private Limited Private foreign Punjab National Bank
Asset Management Company Limited Banks Reliance Capital
Asset Management Company Limited Private Indian State Bank
of India Funds Management Limited Banks Shriram Asset
Management Company Limited Private Indian Sun F and C
Asset Management (I) Private Limited Private foreign
Sundaram Newton Asset Management Company Limited
Private foreign Tata Asset Management Company Limited
Private Indian Credit Capital Asset Management Company
Limited Private Indian Templeton Asset Management (India)
Private Limited Private foreign Unit Trust of India Institutions
Zurich Asset Management Company (I) Limited Private foreign
BRIEF DESCRIPTION ABOUT SOME OF
THE AMCS IS:
1) Reliance Capital Asset Management Company
Limited (RCAM)
Reliance Capital Asset Management Limited (RCAM), a
company registered under the Companies Act, 1956 was
appointed to act as the Investment Manager of Reliance Mutual
Fund.
Reliance Capital Asset Management Limited is a wholly owned
subsidiary of Reliance
Capital Limited, the sponsor. The entire paid-up capital (100%)
of Reliance Capital Asset Management Limited is held by
Reliance Capital Limited.
Reliance Capital Asset Management Limited was approved as
the Asset Management Company for the Mutual Fund by SEBI
vide their letter no IIMARP/1264/95 dated June 30, 1995. The
Mutual Fund has entered into an Investment Management
Agreement (IMA) with RCAM dated May 12, 1995 and was
amended on August 12, 1997 in line with SEBI (Mutual Funds)
Regulations, 1996. Pursuant to this IMA, RCAM is authorized to
act as Investment Manager of Reliance Mutual Fund. The net
worth of the Asset Management Company including preference
shares as on March 31, 2005 is Rs.30.13 crores. Reliance
Mutual Fund has launched twenty five Schemes till date,
namely: Reliance Vision Fund (September 1995), Reliance
Growth Fund (September 1995) Reliance Income Fund
(December 1997), Reliance Liquid Fund (March 1998), Reliance
Medium Term Fund (August 2000), Reliance Short Term Fund
(December 2002), Reliance Fixed Term Scheme (March 2003),
Reliance Banking Fund (May 2003), Reliance Gilt Securities
Fund (July 2003), Reliance Monthly Income Plan (December
2003), Reliance Diversified Power Sector Fund (March 2004)
Reliance Pharma Fund ( May 2004), Reliance Floating Rate
Fund (August 2004), Reliance Media & Entertainment Fund
(September 2004), Reliance NRI Equity Fund (October 2004),
Reliance NRI Income Fund (October 2004), Reliance Index Fund
(January 2005), Reliance Equity Opportunities Fund (February
2005), Reliance Fixed Maturity Fund Series I (March 2005),
Reliance Fixed Maturity Fund - Series II (April 2005), Reliance
Regular Saving Fund (May 2005), Reliance Liquidity Fund (June
2005), Reliance Tax Saver (ELSS) Fund (July 2005), Reliance
Fixed Tenor Fund (November 2005) and Reliance Equity Fund
(Feb 2006).
RCAM has been registered as portfolio managers vide SEBI
Registration No. INP000000423 and renewed effective 1st
August, 2003. RCAM has commenced these activities. It has
been ensured that key personnel of the AMC, the systems, back
office, bank and securities accounts are segregated activity
wise and there exists systems to prohibit access to inside
information of various activities. As per SEBI Regulations, it will
further ensure that AMC meets the capital adequacy
requirements, if any, separately for each such activity.
RCAM has been appointed as the Investment Manager of
"Reliance India Power Fund", a Venture Capital Fund registered
with SEBI vide Registration no.IN/VCF/05-06/062 dated June 16,
2005 but this activity is yet to commence.
2) Birla Sun Life Asset Management Company Limited
(BSLAMC)
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the
investment managers of Birla Mutual Fund, is a joint venture
between the Aditya Birla Group and the Sun Life Financial
Services Inc. of Canada. The joint venture brings together the
Aditya Birla Groups' experience in the Indian market and Sun
Life's global experience.
Since its inception in 1994, Birla Mutual Fund has emerged as
one of India's leading Mutual Funds with over Rs. 16,500 crores
* of assets under management and an investor base in excess
of 8 lakhs. The fund offers a range of investment options, which
include diversified and sector specific equity schemes, fund of
fund schemes, hybrid and monthly income funds, a wide range
of debt and treasury products and offshore funds.
BSLAMC is the first asset management company in India to be
awarded the coveted ISO 9001:2000 certification by DNV,
Netherlands. BSLAMC also provides private Wealth
Management services.
BSLAMC follows a long-term, fundamental research based
approach to investment. The approach is to identify companies,
which have excellent growth prospects and strong
fundamentals. The fundamentals include the quality of the
company’s management, sustainability of its business model
and its competitive position, amongst other factors. Birla Sun
Life Asset Management Company has one of the largest team
of research analysts in the industry, dedicated to tracking down
the best companies to invest in.
Birla Sun Life AMC strives to provide transparent, ethical and
research-based investments and wealth management services.
Vision
To be the most trusted name in investment and wealth
management, to be the preferred employer in the industry and
to be a catalyst for growth and excellence of the asset
management business in India.
Mission
To consistently pursue investor's wealth optimization by:
Achieving superior and consistent investment results. Creating
a conducive environment to hone and retain talent. Providing
customer delight. Institutionalizing system- approach in all
aspects of functioning. Upholding highest standards of ethical
values at all times.
Values
Integrity
Commitment
Passion
Seamlessness
Speed
3) Sundaram Newton Asset Management Company
Sundaram BNP Paribas Mutual has assets under management
to the tune of more than USD 1 billion helps investors to reach
their financial goals by delivering consistent performance
through judicious investment practices.
Vision
To be a significant player in the Indian asset management
space and be one of the top ten asset managers.
Mission
To provide people the best experience in accessing financial
markets.
Philosophy
To take the least cost and most effective solution
Never ever take short-cuts
Admit and share mistakes - internally
Take necessary steps to avoid repetition of work
Respect others, their needs, religion and sentiments
Be on time always
Communicate freely and maintain confidentiality
Develop and maintain trust
Work as a coherent team
4) Kotak Mahindra Asset Management Company
Limited (KMAMC)
Kotak Mahindra Mutual Fund (KMMF) is managed by Kotak
Mahindra Asset Management Company Ltd., a wholly owned
subsidiary of Kotak Mahindra Bank Ltd.
Kotak Mahindra Mutual Fund launched its Schemes in
December 1998 and today manages over Rs.13,635.83 crores
of assets from close to 4,34,622 investors in various schemes.
Kotak Mahindra is one of India's leading financial institutions,
offering complete financial solutions that encompass every
sphere of life. From commercial banking, to stock broking, to
mutual funds, to life insurance, to investment banking, the
group caters to the financial needs of individuals and
corporates.
The group has a net worth of over Rs. 2,500 crore, employs
around 6,700 people in its various businesses and has a
distribution network of branches, franchisees, representative
offices and satellite offices across 250 cities and towns in India
and offices in New York, London, Dubai and Mauritius. The
Group services over 1.6 million customer accounts.
Kotak Mahindra Asset Management Company Limited (KMAMC),
a wholly owned subsidiary of KMBL, is the asset manager for
Kotak Mahindra Mutual Fund (KMMF). KMAMC started
operations in December 1998 and has close to 4, 27,450
investors in various schemes. KMMF offers schemes catering to
investors with varying risk -return profiles and was the first
fund house in the country to launch a dedicated gilt scheme
investing only in government securities.
5) ING Investment Asset Management Company
Private Limited (INGIM)
ING Group is a global financial services company of Dutch
origin with 150 years of experience, providing a wide array of
banking, insurance and asset management services in over 50
countries. Our 114,000 employees work daily to satisfy a broad
customer base: individuals, families, small businesses, large
corporations, institutions and governments. Based on market
capitalization, ING is one of the 20 largest financial institutions
worldwide and in the top-10 in Europe.
Mission
We strive to deliver our financial products and services in the
way our customers expect with exemplary service, maximum
convenience and at competitive rates. This is reflected in our
mission statement: To set the standard in helping our
customers manage their financial future.
Stakeholders
ING conducts its business on the basis of clearly defined
business principles. In all our activities we carefully weigh the
interests of our stakeholders: customers, employees,
shareholders, business partners and society at large. ING
strives to be a good corporate citizen.
ING Investment Management Limited (INGIM) is part of the
specialist investment network of ING Group. INGIM employs
around 2,300 staff in 29 countries across three broad
geographic regions: Europe, the Americas and Asia Pacific. Its
global assets under management total more than a$563 billion
as at 30 September 2005.
Combining rigorous research and integrated risk management,
INGIM’s team of investment professionals is expert in
managing investments across all major asset classes, including
Australian shares, international shares, property securities and
fixed interest.
INGIM’s investment approach
INGIM’s investment philosophy maintains that markets have
inefficiencies and active portfolio management should
generate superior long-term investment returns. INGIM aims to
deliver consistently attractive returns for investors over the
long term at acceptable levels of risk.
INGIM believes that investment markets are ultimately driven
by trends in the economic cycle, and a particular asset class
tends to perform differently to other asset classes at any given
point in the cycle.
INGIM’s active portfolio management aims to take advantage
of asset class trends, adding value and managing risk.
INGIM’s multi sector and international share funds have
exposure to foreign currency. Foreign currency is actively
managed with a view to increasing the return available in
Australian dollars for the benefit of the total portfolio. Active
currency management means buying undervalued currencies
and selling overvalued currencies.
6) TATA Asset Management Company
Tata Asset Management is one of India's fastest-growing fund
management companies, with over Rs 6,200 crore of assets
under management from over 350,000 investors. Established
in 1995, it is also one of the oldest fund management
companies in the Indian private sector.
Tata Asset Management is focused on identifying investment
avenues to generate medium term returns for corporate
investors. The company uses the latest and the best fund
management processes and techniques to service its
organizational clients through 16 branches across the country,
associates in seven other cities in India and 57 investor
servicing centers.
The company offers a wide range of investment products for
institutional investors, with schemes which include equity /
debt and balanced options across the risk-return spectrum.
Among these are:
Tata Pure Equity Fund (invested in fundamentally
undervalued companies with a medium-term horizon.
Tata Equity Opportunities Fund (aimed to capitalizing on
opportunities in the equity market).
Tata Life Sciences and Technology Fund (invested mainly
in fast-growing, intellectual property-driven, new-economy
sectors).
Tata Select Equity Fund (invested predominantly in
growing basic sectors).
Tata Growth Fund (invested in growth-oriented
companies).
Tata Equity P/E Fund (invested predominantly in
undervalued companies).
Tata Dividend Yield Fund (invested predominantly in
stocks with high dividend yields).
Tata Tax Saving Fund (equity-linked tax-saving scheme).
Tata Balanced Fund (balanced exposure to both equities
and debt).
Tata Income Fund (invested in high-quality fixed-income
securities).
Tata Gilt Securities Fund (invested exclusively in
government securities).
Tata Short Term Bond Fund (invested mainly in short-
term, fixed-income and money-market securities).
Tata Income Plus Fund (invested in high-quality debt
securities).
Tata Dynamic Bond Fund (invested across asset and
maturity segments).
7) State Bank of India Funds Management Limited
Banks
The greater sophistication and diversity of investors' asset
management needs requires investment management firms to
offer, in a timely manner, products that meet the needs of a
wide range of investors.
SBI Asset Management leverages its position as an independent
management company, and utilizes domestic and overseas
resources, to offer investors not just conventional financial
products, such as domestic and overseas stocks and bonds, but
alternative investment products as well, including unlisted
stocks and hedge funds.
Investing in Promising Unlisted Stocks. Very few asset
management companies offer investors a chance to invest in
unlisted stocks through public subscription investment trust,
because this requires sophisticated know-how that differs from
conventional listed stock investing.
SBI Asset Management leverages the know-how it has
accumulated through years of experience in the SBI Group
discovering promising new companies, carrying out due
diligence, following up on business trends to offer investors an
opportunity to invest in unlisted stocks through mutual funds.
CONCLUSION
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 behavior 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.
“Brand” plays important role for the investment. People
invest in those Companies where they have faith or they are
well known with them. There are many AMCs. Some are
performing well due to Brand awareness. Some AMCs are not
performing well although some of the schemes of them are
giving good return because of not awareness about Brand.
Reliance, UTI, SBIMF, ICICI Prudential etc. they are well known
Brand, they are performing well and their Assets Under
Management is larger than others whose Brand name are not
well known like Principle, Sunderam, etc.
Through our study we compare the various mutual fund
schemes of HDFC and ICICI mutual fund and this will be
beneficial for the general investors for their decision making
related to mutual fund investment.
FINDINGS
According to our study we found that :-
ICICI Focused Bluechip Equity fund is better as compare to
HDFC Top 200 Fund.
ICICI Pru Dynamic Equity Fund is better as compare to
HDFC Equity Fund.
HDFC Growth Plan is better fund as comparison to ICICI
Pru Growth Plan.
ICICI Pru Tax Plan is better as comparison to HDFC Tax
Saver.
ICICI Balanced Fund is better as comparison to HDFC
Balanced Fund.
HDFC Core and Satellite Fund is better as comparison to
ICICI Emerging S.T.A.R Fund.
ICICI Nifty Index Plan is better as comparison to Nifty
Index Plan.
SUGGESTION
ICICI Pru Mutual Fund have better fund management, but
in ICICI Pru Growth Plan and ICICI Emerging S.T.A.R. fund they
have to improve their fund management for better
performance in future.
HDFC Mutual Fund have to improve their fund
management to compete with ICICI Mutual Funds for better
performance in future and attract more investors for
investment.
BIBLIOGRAPHY
TELEVISION CHANNEL (CNBC AAWAJ)
MUTUAL FUND HAND BOOK
WWW.MONEYCONTROL.COM
WWW.AMFIINDIA.COM
WWW. MUTUALFUNDSINDIA.COM
WWW.ICICIPRUAMC.COM
WWW.HDFCFUND.COM
Certificate of the
Guide
This is to certify that Jashobanta Sahoo, Final
year BBA, Ravenshaw University has successfully
completed the entrepreneurship project
“Comparative Study On The Performance Of
HDFC Mutual Fund & ICICI Prudential Mutual
Fund” under my guidance.
Date : Mukesh Agarwall
Branch ManagerICICI Mutual Fund Cuttack Branch
Declaration
I Jashobanta Sahoo declare that this project
report entitled “Comparative Study On The
Performance Of HDFC Mutual Fund & ICICI
Prudential Mutual Fund” is an original piece of work
done and submitted by me towards partial fulfillment of
my Bachelor in Business Administration.
Jashobanta Sahoo
Acknowledgement
Study is an excellent tool for learning and exploration. No
classroom routine can substitute which is possible while
working in real situations. Application of theoretical knowledge
to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and
perspiration, it’s not easy to achieve anything. There is always
a sense of gratitude, which we express to others for the help
and the needy services they render during the different phases
of our lives. I too would like to do it as I really wish to express
my gratitude toward all those who have been helpful to me
directly or indirectly during the development of this project.
Sometimes words fall short to show gratitude, the same
happened to me during this project. The immense help and
support received from HDFC Mutual Fund & ICICI Prudential
overwhelmed me during this project.
I am highly indebted to Mrs. Madhumala Tripathy, who
has provided me with the necessary information and her
valuable suggestions and comments on bringing out this report
in the best possible way.
I also thank our head of the department Mr. Rajesh
Kumar Sain, who has sincerely supported me at the
foundation stage of the project.
I also thank to Mr. Mukesh Agarwall (Branch manager
ICICI mutual fund )to give their valuable time and suggestion to
us regarding completion of this project
Last but not the list; my heartfelt love for my parents,
whose constant support and blessings helped me throughout
this project.
Jashobanta Sahoo