Chapter 6:

Research Findings and

Conclusion

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3 Assets Management Company

1. HDFC Assets Management Company Limited

2. ICICI Assets Management Company Limited

3. Reliance Assets Management Company Limited

9 Equity Schemes of 3 Assets Management Company

HDFC

1. HDFC Top 200 Fund

2. HDFC Equity Fund

3. HDFC Prudence Fund

ICICI

4. ICICI Top 200 Fund

5. ICICI Discovery Fund

6. ICICI Dynamic Fund

RELIANCE

7. RELIANCE Vision Fund

8. RELIANCE Equity Fund

9. RELIANCE Regular Saving Fund

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HDFC Top 200 Fund

Active Management:

Refers to the use of a human element, such as a single Manager, co-managers or

a team of managers, to actively manage a fund’s Portfolio.They rely on analytical

research, forecasts and their own judgement and experience in making

investment decisions. They believe it is possible to profit from the stock market

through any number of strategies that aim to identify mispriced securities.

Passive Management:

An investing strategy that mirrors a market index and does not attempt to beat

the market attempt to beat the market

Investment Strategy:

The investment portfolio for equity and equity linked instruments will be

Primarily drawn from the companies in the BSE 200 Index

The fund may also invest in listed companies that would qualify to be in the

top200 by market capitalisation on the BSE even though they may not be

listed on the BSE

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Last 5 Year NAV (Net assets Value) and performance:

4

HDFC Equity Fund

Investing in strong companies…

Stronger companies reduce risk in bad times, both of the markets and of the

Industry. Preference for strong and well managed companies across

capitalization Preference for No. 1, 2 or 3 companies in the respective sectors /

segments Investment in mid caps is also targeted in strong companies in their

respective sectors.

Quality of diversification is more important that quantity

Investments in 10 stocks with high correlation is riskier than investments in 3

stocks with low correlation

Despite maintaining a focused portfolio the fund is reasonably diversified

across sectors

Care is taken to target low correlation across sectors (diversify across key

Economic risks / variables)

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Last 5 Year NAV (Net assets Value) and performance:

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HDFC Prudence Fund

A balanced fund is one that has a portfolio comprising debt instruments,

convertible securities, preference and equity shares Assets are generally held in

predefined proportion of debt / money market securities and equities Broadly,

balanced funds target returns greater than debt schemes with lower volatility

than equity schemes Balanced funds provide investors with the best of both

worlds; the returns of equity with the safety of debt

In the long term, the mix between equity and debt instruments is targeted

Between 40:75 and 60:25 respectively

In such times when the interest rates are high and equities are expensive,

investments in debt would be generally more attractive versus equities and

accordingly the fund would increase the debt component in the portfolio

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Last 5 Year NAV (Net assets Value) and performance:

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ICICI Prudential Dynamic Fund

To generate capital appreciation by actively investing in equity and equity

related securities and for defensive consideration in debt / money market

instruments and derivative. The scheme is ranked 2 in Diversified Equity 

category by Crisil. If you are already invested in this scheme, you may continue

to stay invested. But, do keep a check on its performance.

Investment Philosophy

This fund adopts a "Bottom-up" fundamental analysis strategy across market

capitalizations on a diversified basis, to identify and pick its investments. The

fund manager has the discretion to take aggressive or defensive asset calls,

based on market conditions

Key Benefits

It could be an ideal product in a volatile environment as it has the agility,

aimed at capturing upside opportunities in the market across market

capitalizations. On the flip side, it has the ability to switch to cash; thus seeking

to limit the downside, in case stock markets get into an overvalued position.

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Last 5 Year NAV (Net assets Value) and performance:

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ICICI Prudential Top 200 Fund

A multitude of choice could make it difficult to settle on anything. What

looks excellent today may not be that fruitful tomorrow, and what seems

to be hopeless today could be terrific tomorrow.

ICICI Prudential Top 200 Fund, an open-ended diversified equity fund allows

you to capture growth opportunities by constantly being on the lookout for out

the best sectors to invest in across multiple regions in the market.

Investment Philosophy

This fund seeks to optimize the risk-adjusted return by building a portfolio of

large and mid-cap stocks across select sectors. It follows a blend of top-down

macro research to identify growth sectors and bottom-up fundamental research

to identify stocks. It is a multi-sector fund focused on investing in carefully

selected stocks offering best possible risk-adjusted return across select sectors

with potential growth opportunities.

Key Benefits

It gives you a core large-cap portfolio with limited exposure to mid-cap stocks.

It gives you an edge by capturing the best sectoral opportunities in the market

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Last 5 Year NAV (Net assets Value) and performance:

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ICICI Prudential Discovery Fund

Open-ended Diversified Equity Fund, which aims to invest stocks available

at a discount to their intrinsic value, through a process of ‘Discovery’. The

process involves identifying companies that are well managed,

fundamentally strong, and are available at a price, which can be termed as

a bargain.

Investment Philosophy

This fund adopts a "Bottom-up" strategy, to identify and pick its investments

based on an evaluation of several parameters such as Price / Earning, Price /

Book Value and Dividend Yield. The fund manager works towards building a

portfolio that is well diversified across sectors and constructed based on in-

depth research.

Key Benefits

It follows a value strategy of bargain hunting for intrinsically good stocks

As the potential value of the stocks in which the fund invests has not yet

been unlocked, the probability of growth is much higher.

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Last 5 Year NAV (Net assets Value) and performance:

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