Study of HDFC Mutual Fund

8/13/2019 Study of HDFC Mutual Fund

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A

SUMMER TRAINING PROJECT

ON

HDFC MUTUAL FUNDSubmitted

JIWAJI UNIVERSITY GWALIOR (M.P.)

in patia! "u!"i!!ment #" t$e a%ad #" de&ee #"

'a$e!# O" 'uine Adminitati#n

(*+,,-,)

SUBMITTED TO SUBMITTED BY

Ms.Tanu Khar SARIKA SUMAN

!"au!t/ &uide.) BBA " SEM

JAIN GROUP OF COLLEGES G#ALIOR


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DECLARATION

I SARIKA SUMAN Hereby Declare That The Summer Training Entitled HDFC

Mu$ua% Fun& has been prepared as part of the degree of a BBA . JAIN

GROUP OF COLLEGES G#ALIOR and it is beside on original wor as will

be used academic purpose

Da$ ' SARIKA SUMAN P%a( ' G)a%*+r BBA " Semete


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A01NOWLE2GEMENT

It gi!es me immense pleasure to e"press my deep sense of gratitude to mr. #.$

%erma JAIN GROUP OF COLLEGES G#ALIOR for him !aluable guidance

and consistent super!ision throughout the course.

I am also thankful to Ms.Tanu Khar my Company Guide of

3HDFC Mu$ua% Fun&. for his valuable guidance for preparing thefinal Report and also for providing the necessary facilities.

Finally I am indebted to our other faculty members, my

friends and my parents who gave their full fledged cooperation

for successful completion of my pro!ect. It was indeed learning

e"perience for me.

Da$ ' SARIKA SUMAN

P%a(' G)a%*+r BBA " Semete


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0ERTI4I0ATE O4 4A0ULTY GUI2E

#his is to certify that M. SARIKA SUMAN student of BBA "

Semeteprogramme has completed his$her %ummer #raining of

&' (ays prepared this report under my guidance. HDFC LIFE

INSURANCE #ORKING CAPITAL.

Da$ ', Ms.Tanu KharP%a( ',G#ALIOR ("au!t/ &uide.)


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CHAPTER TOPIC PAGE NO

- OBJECTI"E OF THE STUDY

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1 ABOUT HDFC MUTUAL FUND). 789 8(FC *+#+- F+(1. %04%4R%3. #R+%#//&. *C (IR/C#4R%'. 7R(%

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4 PART OF MY SUMMER TRAINING 25 METHODOLOGY OF THE STUDY

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46

5 7UESTIONARIE 1

0 FINDING8 RECOMMENDATION8CONCLUSION 59 BIBLIOGRAPHY 5/


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O'JE0TIVEO4

T5E STU2Y


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OBJECTI"E OF THE STUDY

Indian financial system has been e"piring the !ast effect of globali&ation i.e. drastic

interest rate cut' political disturbances' security scam etc ha!e scattered the common in!estor(s

perception in selecting !arious in!estment portfolio. )ost of the security holders ha!e lost their

confidence in newly come*up corporate sectors for in!estment. +ooing to the situation' it is

,uite encouraging to analy&e how the HD-# )utual -und able to trap the deposits by

introducing !arious schemes and how it protects the interest of the in!estors.

The main study is based on the performance and analysis of !arious schemes with

reference to HD-# )utual -und that is a leading mutual fund industry in India.

The total performance analysis of financial instruments with reference to the HD-#

)utual -und has got obecti!es. This are as follows/*

To now the performance of the different schemes.

The comparati!e study of HD-# )utual -und with other mutual funds.

To now the in!estment pattern of the in!estors in different schemes.

The benefits made from the in!estment on the different schemes.

To now the raning of the HD-# )utual -und Schemes.

To now the di!ersify portfolio of HD-# )utual -und.

To now the ser!ice which HD-# )utual -und is pro!iding to its in!estors

with compare to other mutual funds.


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INTRO2U0TION

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#ha$ *s a Mu$ua% Fun&:

)utual fund is a mechanism for pooling the resources by issuing units to the in!estorsand in!esting funds in securities in accordance with obecti!es as disclosed in offerdocument.

In!estments in securities are spread across a wide cross*section of industries and sectorsand thus the ris is reduced. Di!ersification reduces the ris because all stocs may notmo!e in the same direction in the same proportion at the same time. )utual fund issuesunits to the in!estors in accordance with ,uantum of money in!ested by them. In!estorsof mutual funds are nown as unit holders. The profits or losses are shared by thein!estors in proportion to their in!estments. The mutual funds normally come out with anumber of schemes with different in!estment obecti!es which are launched from time totime.

A mutual fund is re,uired to be registered with Securities and E"change Board of India1SEBI which regulates securities marets before it can collect funds from the public.


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/.- , H+) *s a ;u$ua% +< a s(h;:The performance of a particular scheme of a mutual fund is denoted by :et Asset %alue1:A%.

)utual funds in!est the money collected from the in!estors in securities marets. Insimple words' :et Asset %alue is the maret !alue of the securities held by the scheme.Since maret !alue of securities changes e!ery day' :A% of a scheme also !aries on dayto day basis. The :A% per unit is the maret !alue of securities of a scheme di!ided bythe total number of units of the scheme on any particular date. -or e"ample' if the maret!alue of securities of a mutual fund scheme is 3s 255 lahs and the mutual fund hasissued 95 lahs units of 3s. 95 each to the in!estors' then the :A% per unit of the fund is3s.25. :A% is re,uired to be disclosed by the mutual funds on a regular basis * daily orweely * depending on the type of scheme.


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/.1 , S(+= e ha!e e"plained

the ey benefits in this section. The benefits ha!e been broadly split into uni!ersalbenefits' applicable to all schemes' and benefits applicable specifically to open*endedschemes.


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-. Pr+ith close*ended schemes' you can sellyour units on a stoc e"change at the pre!ailing maret price or a!ail of the facilityof direct repurchase at :A% related prices which some close*ended and inter!alschemes offer you periodically.


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5. Trans=arn(

?ou get regular information on the !alue of your in!estment in addition todisclosure on the specific in!estments made by your scheme' the proportionin!ested in each class of assets and the fund managers in!estment strategy and

outloo.

0. F%**%*$

Through features such as regular in!estment plans' regular withdrawal plans anddi!idend rein!estment plans' you can systematically in!est or withdraw fundsaccording to your needs and con!enience.

9. Ch+*( +< S(h;s)utual -unds offer a family of schemes to suit your !arying needs o!er a lifetime.

-6. #%% R@u%a$&

All )utual -unds are registered with SEBI and they function within the pro!isionsof strict regulations designed to protect the interests of in!estors. The operations of)utual -unds are regularly monitored by SEBI.

--. Un&rs$an&*n@ an& Mana@*n@ R*s

All in!estments whether in shares' debentures or deposits in!ol!e ris/ share !aluemay go down depending upon the performance of the company' the industry' stateof capital maret and the economy0 generally' howe!er longer the term' lesser theris0 companies may default in payment of interestprincipal on their depositsbondsdebentures0 the rate of interest on in!estment may fall short of the rate of inflationreducing the purchasing power.

>hile ris cannot be eliminated' sillful management can minimi&e ris. )utualfund helps to reduce ris through di!ersification and professional management. The

e"perience and e"pertise of )utual -und managers in selecting fundamentallysound securities and timing their purchases and sales help them to build a di!ersifiedportfolio that minimi&e ris and ma"imi&es returns.

92.Ta Bn


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Section C5+ of the income Ta" Act '99 enables ta" free income up to rs

94555 and di!idends from )- s are eligible for this benefit.

>hen you in!est for o!er a year' the ta" payable on encashment is +ong

term #apitals gains ta" at 256. @nce also get an inde"ation benefit whichhas been appro"imately C6 per year. This reduces the ta"able income andthus decreases the ta" liability.

There is also an opportunity to set off capital losses against gains from

income schemes.

-ull e"emption from capital gains ta" as it comes under Section 4FEAEB of

the income ta" Act.

@ne has to pay ta" only when he encash units' but ha!e to pay ta" on the

interest earned on other debt instruments e!ery year on an accrual basis'e!en though he recei!es the interest later. This generates higher post ta"returns compared to other debt instruments.

Ta" is ust lie a monster that frightens a number of indi!iduals through out thenation. There are ust tow way to fight with this monater/

. #oncealDepress Income

. )ae ta" efficient in!estments.

$erhaps the second option is far better than the first as it gi!es the peace ofmind together with a feeling that one is a responsible citi&en of the nation. >ithincreasing amount of awareness that is taing birth in the minds of in!estors'mutual fund has become cynosure of the eye of the se!eral in!estors.

The ta"es a!ailable are tow inds/


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. To the mutual fund* as e"plained below in :o 9

. To the In!estor* as e"plained below in :o 2

-. Mu$ua% Fun& Taa$*+n

. )utual fund is fully e"empted from the ta" under Section95 12;D of theIncome Ta" Act99.

.It recei!es all income without deduction at source.

.)utual funds do not ha!e to pay ta" on trading profit' short term capital gain'di!idend income' underwriting commission' placement fees' long term capitalgains' other income' etc.

/. Bn


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/. , In?s$;n$ (r*$r*a

L+)r (+s$

It is a lower cost of in!estment as compare to other mode of in!estmentoption in the maret. Here the in!estor can in!est a minimum of 3s455 in thescheme of E+SS 1E,uity +in Sa!ing Scheme.

Lss =a=r )+r

Here less paper wor is re,uire than other. The in!estor gi!e his detailinformation lie hisher name'age'address'phone no.' pan card no' nomineename and address1in case of minor and three full signature of the candided.

N+ (ash Transa($*+ns

In!estor need not re,uire paying cash' instead of cash in!estor has to payche,ue or demand draft. >hich help to pre!ent misappropriation and alsosa!e the ta". Here the in!estor ust writes the product name of mutual fundand sign on it. It also sa!es the time.

N+ A@ Bar

There is no age bar of in!estor here any age group can in!est in mutual fund.In case of minor1below 9C year there is a nominee' so a child can in!estthrough his guardian and a person ha!ing age of G5 also in!est in mutualfund 'which is not possible in other in!estments.

Sr?*( +r an *n& +< *n(+; @r+u=

A ser!ice holder or any ind of income group or a student or unemployedpeople can in!est in mutual fund but the person is a rational human beingha!ing sound nowledge of in!estment company.


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A'OUT

5240 6MUTUAL 4UN2

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1.- , #h HDFC Mu$ua% Fun&:

HD-# )utual -und is one of the largest mutual funds and well*established fund house in the

country with consistent and abo!e a!erage fund performance across categories since its

incorporation on December 95' 9. >hile our past e"perience does mae us a !eteran' but

when it comes to in!estments' we ha!e ne!er belie!ed that the e"perience is enough.

Our In?s$;n$ Ph*%+s+=h

The single most important factor that dri!es HD-# )utual -und is its belief to gi!e the in!estor

the chance to profitably in!est in the financial maret' without constantly worrying about the

maret swings. To reali&e this belief' HD-# )utual -und has set up the infrastructure re,uired

to conduct all the fundamental research and bac it up with effecti!e analysis. @ur strong

emphasis on managing and controlling portfolio ris a!oids chasing the latest fads and trends.

# Oe ha!e come up with !arious products across asset

and ris categories to enable in!estors to in!est in line with their in!estment obecti!es and ris

taing capacity. Besides' we also offer $ortfolio )anagement Ser!ices.

Our A(h*?;n$s

HD-# Asset )anagement #ompany 1A)# is the first A)# in India to ha!e been assigned theJ#3ISI+ -und House +e!el K 9( rating. This is its highest -und Lo!ernance and $rocess Muality

3ating which reflects the highest go!ernance le!els and fund management practices at HD-#

A)# It is the only fund house to ha!e been assigned this rating for two years in succession.

@!er the past' we ha!e won a number of awards and accolades for our performance


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1./ , SPONSORS

H+us*n@ D?%+=;n$ F*nan( C+r=+ra$*+n L*;*$& !HDFC>. HD-# was

incorporated in 9GG as the first speciali&ed )ortgage #ompany in India. HD-# pro!ides

financial assistance to indi!iduals' corporate and de!elopers for the purchase or construction of

residential housing. It also pro!ides property related ser!ices 1e.g. property identification' sales

ser!ices and !aluation' training and consultancy. @f these acti!ities' housing finance remains

the dominant acti!ity. HD-# has a client base of around 92 lac borrowers' around C lac

depositors' o!er 9.5C lac shareholders and 45'555 deposit agents' as at )arch ;9' 255C. HD-#

has raised funds from international agencies such as the >orld Ban' I-# 1>ashington'

7SAID' DEL' ADB and =f>' international syndicated loans' domestic term loans from bans

and insurance companies' bonds and deposits. HD-# has recei!ed the highest rating for its bonds

and deposits program for the thirteenth year in succession. HD-# Standard +ife Insurance

#ompany +imited' promoted by HD-# was the first life insurance company in the pri!ate sector

to be granted a #ertificate of 3egistration 1on @ctober 2;' 2555 by the Insurance 3egulatory and

De!elopment Authority to transact life insurance business in India.

S$an&ar& L*


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marets world*wide' which includes a range of pri!ate and public e,uities' go!ernment and

company bonds' property in!estments and !arious deri!ati!e instruments

1.1 , TRUSTEEHD-# Trustee #ompany +imited' a company incorporated under the #ompanies Act' 94 is the

Trustee to HD-# )utual -und !ide the Trust deed dated 8une C' 2555' as amended from time to

time. HD-# Trustee #ompany +td is wholly owned subsidiary of HD-#

Th B+ar& +< D*r($+rs +< HDFC Trus$ (+;=an L*;*$& (+ns*s$s +< $h


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1.2 , A)ar&s 3 A((+%a&s

CNBC , T" -0 , CRISIL Mu$ua% Fun& +< $h Yar A)ar&s /660' !1 a)ar&s>

-. HDFC Pru&n( Fun&was the only scheme that won the #:B# * T% 9C * #3ISI+ )utual -undof the ?ear Award 255C in the M+s$ C+ns*s$n$ Ba%an(& Fun& un&r CRISIL CPRfor thecalendar year 255G 1from amongst ; schemes.

/. HDFC Cash Mana@;n$ Fun& , Sa?*n@s P%anwas the only scheme that won the #:B# * T%9C * #3ISI+ )utual -und of the ?ear Award 255C in the M+s$ C+ns*s$n$ L*u*& Fun& un&rCRISIL CPRfor the calendar year 255G 1from amongst 4 schemes.

1. HDFC Cash Mana@;n$ Fun& , Sa?*n@s P%anwas the only scheme that won the #:B# * T%9C * #3ISI+ )utual -und of the ?ear Award 255C in the L*u*& S(h; R$a*% Ca$@+rforthe calendar year 255G 1from amongst 9 schemes.

ICRA Mu$ua% Fun& A)ar&s /660' !1 a)ar&s>

-. HDFC MF M+n$h% In(+; P%an*L+n@ Tr; P%an* 3aned a S?n S$ar Fun&and has beenawarded the G+%& A)ar&


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PRO2U0T 7 SERVI0E

O4

5240 MUTUAL 4UN2

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2.- , TYPES OF MUTUAL FUND SCHEME

!a>O=n,n&& Fun& S(h;

An open*ended fund or scheme is one that is a!ailable for subscription and repurchase ona continuous basis. These schemes do not ha!e a fi"ed maturity period. In!estors cancon!eniently buy and sell units at :et Asset %alue 1:A% related prices which aredeclared on a daily basis. The ey feature of open*end schemes is li,uidity.

!>C%+s,n&& Fun& S(h;

A close*ended fund or scheme has a stipulated maturity period e.g. 4*G years. The fund isopen for subscription only during a specified period at the time of launch of the scheme.

In!estors can in!est in the scheme at the time of the initial public issue and thereafterthey can buy or sell the units of the scheme on the stoc e"changes where the units arelisted. In order to pro!ide an e"it route to the in!estors' some close*ended funds gi!e anoption of selling bac the units to the mutual fund through periodic repurchase at :A%related prices. SEBI 3egulations stipulate that at least one of the two e"it routes ispro!ided to the in!estor i.e. either repurchase facility or through listing on stoce"changes. These mutual funds schemes disclose :A% generally on weely basis.

!(>S($+r s=(*


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2./ , IN"ESTMENT PLAN

2./.- , SYSTEMATIC IN"ESTMENT PLAN !SIP>HD-# )- SI$ is similar to a 3ecurring Deposit. E!ery month on a specified date an amount you

choose is in!ested in a mutual fund scheme of your choice. The dates currently a!ailable for SI$s

are the -s$8 4$h8 -6$h8 -4$h8 /6$h an& $h /4$h of a month. ?ou(ll be ama&ed to learn about themany benefits of in!esting through HD-# )- SI$.

Bnith the HD-# )- Systematic In!estment

$lan you commit an amount of your choice 1minimum of 3s. 9555 and in multiples of 3s. 955thereofO to be in!ested e!ery month in one of our schemes.

Thin of each SI$ payment as laying a bric. @ne by one' you(ll see them transform into a

building. ?ou(ll see your in!estments accrue month after month. It(s as simple as gi!ing at least

postdated monthly che,ues to us for a fi"ed amount in a scheme of your choice. It(s the perfect

solution for irregular in!estors.

O)inimum amounts may differ for each Scheme. $lease refer to SI$ Enrolment -orm for details.

Bn


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D*s(%a*;r'The illustration abo!e is merely indicati!e in nature and should not be construed asin!estment ad!ice. It does not in any manner imply or suggest performance of any HD-# )utual-und Scheme1s. $lease read 3is -actors.

Bn


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as in!estment ad!ice. It does not in any manner imply or suggest performance of any HD-#

)utual -und Scheme1s. 3upee #ost A!eraging neither ensures you profits nor protects you

from maing a loss in declining marets. $lease read 3is -actors.

As seen in the table' by in!esting through SI$' you end up buying more units when the price is

low and fewer units when the price is high. Howe!er' o!er a period of time these maret

fluctuations are generally a!eraged. And the a!erage cost of your in!estment is often reduced.

At the end of the 92 months' Suresh has more units than 3aesh' e!en though they in!ested thesame amount. That(s because the a!erage cost of Suresh(s units is much lower than that of

3aesh. 3aesh made only one in!estment and that too when the per*unit price was high.

Suresh(s a!erage unit price P 925559FC5.592 P 3s. C.954

3aesh(s a!erage unit price P 3s. .;F4


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Bnith HD-# )- SI$' each amount you in!est grows through compounding benefits as well. That

is' the interest earned on your in!estment also earns interest. The following e"ample illustrates

this.

Imagine :eha is 25 years old when she starts woring. E!ery month she sa!es and in!ests 3s.

4'555 till she is 24 years old. The total in!estment made by her o!er 4 years is 3s. ; lahs.Arun

also starts woring when he is 25 years old. But he doesn(t in!est monthly. He gets a large bonus

of 3s. ; lahs at 24 and decides to in!est the entire amount.

Both of them decide not to withdraw these in!estments till they turn 45. At 45' :eha(s

In!estments ha!e grown to 3s. F'C'2G;O whereas Arun(s in!estments ha!e grown to 3s.


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;'9G'5CFO. :eha(s small contributions to a SI$ and her decision to start in!esting earlier than

Arun ha!e made her wealthier by o!er 3s. 95 lahs.

O-igures based on 956 p.a. interest compounded monthly.

D*s(%a*;r'TheThe illustration abo!e is merely indicati!e in nature and should not be construed

as in!estment ad!ice. It does not in any manner imply or suggest performance of any HD-#

)utual -und Scheme1s. $lease read 3is -actors.

Bn


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The En$r L+a& S$ru($ur for the transferee schemes * HD-# Lrowth -und' HD-# E,uity

-und' HD-# Top 255 -und' HD-# #apital Builder -und' HD-# #ore Q Satellite -und' HD-#

$remier )ulti*#ap -und' HD-# Balanced -und' HD-# $rudence -und' HD-# +ong Term

Ad!antage -und and HD-# Ta"Sa!er will be as follows/

The E*$ L+a& S$ru($uris as follows/

-or Transferee Schemes / HD-# +ong Term Ad!antage -und and HD-# Ta"Sa!er * :il

-or Transferee Schemes / HD-# Lrowth -und' HD-# E,uity -und' HD-# Top 255 -und'

HD-# #apital Builder -und' HD-# #ore Q Satellite -und' HD-# $remier )ulti*#ap -und'

HD-# Balanced -und and HD-# $rudence -und.

In respect of each in!estment through ST$ less than 3s. 4 crore in !alue' an E"it +oad of 9.246is payable if units are redeemed switched*out on or before 2 years from the date of allotment. In

respect of each in!estment through ST$ e,ual to or greater than 3s. 4 crore in !alue' no E"it

+oad is payable.

Thus' this facility offers the benefits similar to those of an SI$ and is suitable for in!estors who

intend to in!est systematically and currently ha!e funds for in!estments.


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2.1 , PRODUCTS OF MUTUAL FUND

E7UITY GRO#TH FUND

CHILDRENS GIFT FUND

LI7UID FUND

DEBT INCOME FUND


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E7UITY GRO#TH FUND DEBTINCOME FUNDHDFC Gr+)$h Fun&

HDFC T+= /66 Fun&

HDFC C+r an& Sa$%%*$ Fun&HDFC In& Fun& , Sns P%an

HDFC In& Fun& , Sns P%us P%an

HDFC Ba%an(& Fun&

HDFC L+n@ Tr; A&?an$a@ Fun& !ELSS>

HDFC L+n@ Tr; Eu*$ Fun&

HDFC In


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HDFC Gr+)$h Fun&

HD-# Lrowth fund' an open*ended growth scheme' applies an in!estment approach

based on a set of well established but fle"ible principles that emphasi&e the concept of

sustainable economic earnings cash return on in!estment. The obecti!e is to identifybusiness with superior growth prospects nd good management at a reasonable price.

The fi!e basic principles that ser!e the foundation for this approach are as follows/

-ocus on the long term

In!estment confers proportionate ownership of the business

)aintain a margin safety

)aintain a balanced outloo on the maret

Discipline approach to selling.

The in!estment philosophy rests on a two*pronged approach. 5*C56 of the portfolio will

aim to stay in!ested for most of the time in large cap stocs that satisfy the abo!e

in!estment criteria. This allocation to large cap stocs also ensures greater li,uidity in the

portfolio. 25*F56 of the portfolio will be in!ested in companies of scale that are either

large maret share holder

Bas*( S(h; In


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Fun& Pr un*$>Da$ Pr*+& NA" R$urns!>

Bn(h;arR$urns!>Q

Mar(h 168 /665 +ast F4C days F4.F9 9;.C9OO 2.;GOOD(;r /08

/665

+ast Si" months 19C4

days

G.G5 *;2.CCO *;;.;CO

Jun /98 /665 +ast 9 ?ear 1;G days 4F.4 *2.22OO *C.5GOOJun 168 /664 +ast ; ?ears 195

days24.F 2G.GOO 2;.29OO

Jun 168 /661 +ast 4 ?ears 19C2Gdays

95.C2 ;G.4COO ;5.9OO

Jun 168 -990 +ast 95 ?ears 1;4;days

:.A :.A. 94.24OO

S=$;r --8/666

Since Inception 12CFdays

95.555 2;.OO 9F.FFOO

O Absolute 3eturns OO #ompounded Annualised 3eturns R SE:SE Due to an o!er all sharp rise in the stoc pricesU $ast performance may or may not be sustained in the future

SIP R$urnsSIP In?s$;n$s S*n( In(=$*+n 4 Yar 1 Yar - YarT+$a% A;+un$ In?s$& !Rs.> F'555.55 5'555.55 ;'555.55 92'555.55Mar$ "a%u as +n Jun 168 /660 ;;C'C5.F 994'G44.; F;'GFC.4C 'C4G.;R$urns !Annua%*s&> ;9.CF6 2.F6 9;.956 *;9.FF6

Bn(h;ar R$urns 22.GG6 25.F6 .GG6 *;.946

# SENSEX

Benchmar * BSE Sense"

Disclaimer/ The abo!e in!estment simulation is for illustrati!e purposes only and should not be

construed as a promise on minimum returns and safeguard of capital. The A)# )utual -und is

not guaranteeing or promising or forecasting any returns. SI$ does not assure a profit or

guarantee protection against a loss in a declining maret. $lease refer SI$ Enrolment -orm or

contact nearest IS# for SI$ +oad Structure


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HDFC TOP,/66 FUND

In?s$;n$ O($*?

The in!estment obecti!e is to generate long term capital appreciation from a portfolio of e,uity

and e,uity lined instruments. The in!estment portfolio for e,uity and e,uity lined instruments

will be primarily drawn from the companies in the BSE 255 Inde". -urther' the Scheme may also

in!est in listed companies that would ,ualify to be in the top 255 by maret capitali&ation on the

BSE e!en though they may not be listed on the BSE This includes participation in large I$@s

where in the maret capitali&ation of the company based on issue price would mae the company

a part of the top 255 companies listed on the BSE based on maret capitali&ation

Bas*( S(h; In


37/75

R$urnsHDFC T+= /66Fun&

!NA" as a$ ?a%ua$*+n &a$8 Rs.Pr un*$>

--4.2/2

Da$ $eriod :A% 3eturns16 NNU

Benchmar3eturns16R

Mar(h 168 /665 +ast F4C days 95F.45F C.2FOO F.F4OOD(;r /08/665

+ast Si" months 19C4days

9G.CCC5 *;9.24O *;G.4;O

Jun /98 /665 +ast 9 ?ear 1;G days 925.;F *F.5OO *C.C4OOJun 168 /664 +ast ; ?ears 195

days4G.;F; 2.2;OO 29.2OO


2;.;4C ;G.OO 2.F;OO


92.GF 2G.92OO 9G.44OO

O($+r --8 -99 Since Inception 1F2C5days 95.555 24.;OO 94.9COO

SIP R$urnsSIP In?s$;n$s S*n(

In(=$*+n-6 Yar 4 Yar 1 Yar - Yar

T+$a% A;+un$ In?s$&!Rs.>

9F9'555.55 925'555.55

5'555.55 ;'555.55

92'555.55

Mar$ "a%u as +n Jun168 /660

C;4'4;4.F4 4C5'92.5F

99;';G4.52

F9'9.2

'CF;.59

R$urns !Annua%*s&> 2G.C46 2.46 24.GG6 .G;6 *;9.F6Bn(h;ar R$urns 9C.;26 25.246 9C.56 4.C26 *;C.F56

Bn(h;ar , BSE /66





contact nearest IS# for SI$ +oad Structure


38/75

HDFC E7UITY FUND

HD-# E,uity -und is an open*ended growth scheme' which aims to generate long*

term capital appreciation. The scheme maintains a focused portfolio predominantly

of large cap stocs' through there is controlled e"posure to mid caps. The schemes

howe!er always remain di!ersified across sectors. )oreo!er' the sectoral allocation

is done eeping in mind to di!ersify across sectors wealy co*related to each other

to further reduce ris. The underlying theme while managing the scheme is to in!est

in businesses that are sustainable and for good ,uality.

Bas*( S(h; In


39/75

Sr.N+. Ass$ T= ! +< P+r$ R*s Pr+


40/75

Da$ Pr*+& NA" R$urns!>

Bn(h;arR$urns!>Q

Mar(h 168 /665 +ast F4C days 9F2.52 5.;2OO 9.FGOOD(;r /08/665

+ast Si" months 19C4days

29.C4G5 *;F.CCO *;.;CO

Jun /98 /665 +ast 9 ?ear 1;Gdays

94.;9; *9;.;;OO *99.4OO

Jun 168 /664 +ast ; ?ears 195days

G;.GC 2F.G9OO 9C.CGOO


2.5 ;.COO 2.5;OO


G.2C5 ;F.GOO 9G.G4OO

Januar -8 -994 Since Inception 1F2days

95.555 29.GCOO .22OO

O Absolute 3eturns OO #ompounded Annualised 3eturns R SQ$ #: 455U $ast performance may or may not be sustained in the future

SIP R$urns

SIP In?s$;n$s S*n(In(=$*+n

-6 Yar 4 Yar 1 Yar - Yar

T+$a% A;+un$ In?s$&!Rs.>

92'555.55 925'555.55

5'555.55 ;'555.55

92'555.55

Mar$ "a%u as +n Jun

168 /660

9'FF'G4;.2 F'F5.

4

95G'5F.9

2

;C'C.

G

'F5C.4G

R$urns !Annua%*s&> 2.4;6 ;9.6 2;.G96 4.2G6 *;G.426Bn(h;ar R$urns 9.9C6 9.GG6 9G.46 ;.246 *F5.2G6

D*s(%a*;r'

The abo!e in!estment simulation is for illustrati!e purposes only and should not be construed asa promise on minimum returns and safeguard of capital. The A)# )utual -und is notguaranteeing or promising or forecasting any returns. SI$ does not assure a profit or guaranteeprotection against a loss in a declining maret. $lease refer SI$ Enrolment -orm or contactnearest IS# for SI$ +oad Structure.

HDFC In


41/75

In?s$;n$ O($*?

To see long*term capital appreciation by in!esting predominantly in e,uity and e,uity related

securities of companies engaged in or e"pected to benefit from growth and de!elopment of

infrastructure.

Bas*( S(h; In


42/75

The Scheme may tae deri!ati!es position for hedging' portfolio balancing or to undertae any

other strategy as permitted under SEBI 3egulations from time to time 1ma". 256 of the net

assets based on the opportunities a!ailable subect to SEBI 3egulations.

R$urns

HDFC In


43/75

HDFC Pru&n( Fun&

In?s$;n$ O($*?

The in!estment obecti!e of the Scheme is to pro!ide periodic returns and capital appreciationo!er a long period of time' from a udicious mi" of e,uity and debt in!estments' with the aim topre!ent minimise any capital erosion.

Bas*( S(h; In


44/75

In?s$;n$ S$ra$@

As outlined abo!e' the in!estments in the Scheme will comprise both debt and e,uities. The

-und would in!est in Debt instruments such as Lo!ernment securities' money maret

instruments' securitised debts' corporate debentures and bonds' preference shares' ,uasi

Lo!ernment bonds' and in e,uity shares. In the long term' the mi" between debt instruments and

e,uity instruments is targeted between 5/F5 and F5/5 respecti!ely. The e"act mi" will be a

function of interest rates' e,uity !aluations' reser!es position' ris taing capacity of the portfolio

without compromising the consistency of di!idend pay out 1in the case of Di!idend $lan' need

for capital preser!ation and the need to generate capital appreciation.

-und )anagerMr. Prashan$ Ja*nMr. Anan& La&&ha* Dedicated -und )anager * -oreign Securities

In?s$;n$ Pa$$rn

The following table pro!ides the asset allocation of the Schemes portfolio.The asset allocation under the respecti!e $lans will be as follows /

Sr.N+. T= +< Ins$ru;n$s N+r;a%A%%+(a$*+n! +< N$ Ass$s>

R*s Pr+


45/75

HDFC Ca=*$a% Bu*%&r Fun&

HD-# #apital Builder -und' an open*ended growth scheme' aims to in!est in

strong companies at prices that below fair !alue in the opinion of the fund managers. The

in!estment approach is based on the philosophy that !alue may be unco!ered only where

the crowd has not disco!ered it yet. In the opinion of the fund managers such !alue e"ists

in good ,uality well managed neglected stocs. The current neglect in these companies

by the broad maret participants can be due to !arious factors such as difficult recent

maret conditions' maor restructuring charges' %3S e"penses or other such one time

effects that may subdue profits in the near term. This also usually results in the shares of

such companies being relati!ely illi,uid.

>hile assuming such relati!e ris adusted li,uidity ris the fund managers

propose to capitali&e on e"pected pic up reported earning as result of strong growth

prospects in the future. This e!entually translates in to more li,uidity depending on the

success of this strategy. Such opportunities are a!ailable in large companies as well as

small companies. >hile there is no criteria for stoc selection based on maret

capitali&ation the endea!or is to eep a balance of companies in the portfolio between big

and small companies' on one category o!erwhelming the other

Bas*( S(h; In


46/75

255C

In?s$;n$ Pa$$rn

The asset allocation under the Scheme will be as follows /

Sr.N+. Ass$ T= ! +< P+r$ R*s Pr+

9G;'555.55 925'555.55

5'555.55 ;'555.55

92'555.55

Mar$ "a%u as +n Jun168 /660

C5'9;9.F2 F;'G42.5C

95;';F.F5

;G'4;.;F

'2F2.9

R$urns !Annua%*s&> 25.496 24.496 29.26 2.GF6 *;.G;6Bn(h;ar R$urns 94.5F6 9.GG6 9G.46 ;.246 *F5.2G6

Pas$ =r


47/75

R$urns

HDFC Ca=*$a%Bu*%&r Fun&

!NA" as a$ ?a%ua$*+n &a$8Rs. Pr un*$>

2.-9

Da$ Pr*+& NA" R$urns!>

Bn(h;arR$urns!>Q

Mar(h 168 /665 +ast F4C days 5.; 4.5COO 9.FGOOD(;r /08 /665 +ast Si" months

19C4 days954.92;5 *;C.O *;.;CO

Jun /98 /665 +ast 9 ?ear 1;Gdays

G;.2G *92.;OO *99.4OO

Jun 168 /664 +ast ; ?ears 195days

;G.FGF 9.2OO 9C.CGOO


9;.99G ;G.;2OO 2.5;OO

Jun 168 -990 +ast 95 ?ears 1;4;days G.FC5 2;.OO 9G.G4OO

Fruar -8 -992 Since Inception142; days

95.555 9;.GOO G.4OO

O Absolute 3eturns OO #ompounded Annualised 3eturns

R SQ$ #: 455

U $ast performance may or may not be sustained in the future

Bn(h;ar , S 3 P CN 466





contact nearest IS# for SI$ +oad Structure.


48/75

PART

O4 MY

SUMMER TRAINING


49/75

As =ar$ +< ; un&rs$u& $ra*n*n@

-or the purpose of fulfillment of masters degree in business administration i had

undertaen my summer training at HDFC,;u$ua%


50/75

The largest amount of in!estment was made by )r. )D ABID 'an amount of 9'45'555 ' in the

scheme HD-#* e,uity fund for a duration of years.@ther in!estors were

NAME In?s$;n$$=

A;+un$ Scheme Dura$*+n

-. MD ABID SIP /8666 HD-# L3@>TH -7:D 9 ?EA3 /. SHOAIB AKHTER SIP -8666 HD-# T@$ 255 -7:D 9 ?EA3 1. DEBENDRA NATH PAUL On $*; -8668666 HD-# EM7IT? -7:D ; ?EA3 2. NAM U AMA SIP -8666 HD-# L3@>TH -7:D 9 ?EA3 4. MD ABID ONE TIME -8468666 HD-# EM7IT? -7:D 2 ?EA3 . NISHIT HEMANI SIP /8666 HD-# L3@>TH -7:D 9 ?E3A5. Dr NEYA AHMED SIP -8666 HD-# L3@>TH -7:D 9 ?E3A

0. KHALID SADAT SIP /8666 HD-# T@$ 255 -7:D 9 ?EA3 9. CHANDU LAL GUPTA SIP -8666 HD-# T@$ 255 -7:D 9 ?EA3 -6. NISHIT HEMANI ONE TIME 468666 HD-# EM7IT? -7D 2 ?EA3 --. MD PER#E ALAM SIP -8666 HD-# BA+A:#ED -7:D 9 ?EA3-/. JUBAIR KHAN SIP -8666 HD-# BA+A:#ED -7:D 9 ?EA3-1. D T MOHANTY SIP -8666 HD-# L3@>TH -7:D 9 ?EA3 -2. PRAKASH JHA SIP -8666 HD-# T@$ 255 -7:D 9 ?EA3 -4. KHALID SADAT On $*; -8668666 HD-# EM7IT? -7:D ; ?EA3 -. MD NABEEL SIP /8666 HD-# L3@>TH -7:D 9 ?EA3 -5. "IKRANT GUPTA SIP -8666 HD-# L3@>TH -7:D 2 ?EA3 -0. RAJESH KUMAR SIP -8666 HD-# L3@>TH -7:D 9 ?E3A-9. MD ASIF SIP -8666 HD-# L3@>TH -7:D 9 ?E3A

/6. MAAR KHAN SIP -8666 HD-# T@$ 255 -7:D 9 ?EA3 /-. BIS#AJIT RAI SIP -8666 HD-# T@$ 255 -7:D 9 ?EA3 //. NARENDRA NATH PAUL SIP -8666 HD-# L3@>TH -7:D 2 ?EA3 /1. HARPREET KAUR SIP -8666 HD-# BA+A:#ED -7:D 9 ?EA3/2. SOMA AGAR#AL SIP -8666 HD-# EM7IT? -7D 9 ?EA3

During the training period i managed to con!ince people to mae in!estment in Hdfc )utualfunds.The total amount of trasaction i pro!ided was about 3s G'55'555


51/75

MET5O2OLOGYO4

T5E STU2Y

).R/%/RC8

*/#84(4-4G9

1.%4+RC/% 4F (#

C4--/C#I4

3.8904#8/%I% 4F #8/

%#+(9

&.(# C4--/C#I4 :

-9%I%


52/75


53/75

.- , Rsar(h M$h+&+%+@'Since the study undertaen by me is related to the study of mutual fund in India' the

means adopted for collection of !arious facts and data were in the form of personal obser!ation'

officials documents' and directly interacting with the officers concerned and also directly

interacting with the e"isting customers as well as new customer formed. It was an e"ploratory

research. >or is mainly emphasi&ed on the primary data. $rimary data are gathered form

prescribed ,uestionnaire and by personal inter!iew and the secondary data are collected from

different boos and maga&ines.

8.* - S#ue #" 2ata #!!eti#n#here are two sources of data collection. #hey are;

,. PRIMARY 2ATA SOUR0E

*. SE0ON2ARY 2ATA SOUR0E

#he secondary data are those, which have already been collected by

someone else thorough 5ooks, Internet, #elevision, !ournals, *aga


54/75

.1 , HYPOTHESIS OF THE STUDY-or doing the dissertation topic performance of mutual fund analysisI too the hypothesis of

certain groups. I di!ide the total population on the basis of their age' income' gender' occupation

and status.

)ale obholders within the age group of 2F*F5.

-emale obholders within the age group of 2F*F5.

)ale obholders abo!e the age F5.

-emale obholders abo!e the age F5.

Indi!idual ha!ing the income in the range of 9lh*;lh per annum.

Indi!idual ha!ing the income abo!e ;lh per annum.

In @rissa i.e. rural area it is still a new concept so it will tae some more time to really penetrate

into this maret apart from people who are H:I(s though these people are gi!en more emphasis

by all the )utual funds and distribution channels. >ith the introduction of SI$(s the industry has

created some options clear for retail in!estors to enter this maret. )y sur!ey says that it the

awareness le!el that is playing acting as an obstacle in the growth of )utual fund Industry in

@rissa as a whole. $eople in Bhubaneswar are now opening up and interested in looing forward

for certified in!estment planners to help them designing their in!estment portfolio. @rissa as a

maret was not that efficient few years bac' but now with lot of multinational companies and

other reputed companies coming down' the @rissa maret is slowly picing up. -or mutual funds

it is one of the emerging marets that can be trapped form its de!eloping stage and though

people of rural areas prefer )oderate ris they can easily accept mutual funds. )utual fund

Industry is deli!ering a splendid performance and will of course continue in coming future. But

that can be only possible as the distribution channels lie =ar!y' Baa finance and Bans i.e.

#iti Ban' HD-# Ban' I#I#I Ban and Standard #hartered Ban along with all Asset

)anagement #ompany.


55/75

.2 , Da$a C+%%($*+n 3 Da$a Ana%s*s

N+ +< rs=+n&n$ , /66

Ma% , -14

F;a% , 4

Nu;r +< rs=+n&n$s A((+r&*n@ $+ a@@r+u=s'

-0 $+ 16 44

16 $+ 26 06

26 $+ 46 26

46 a+? /4

Th sur? *s (+n&u($& +n a sa;=% +< /66 =+=% )h*(h *n(%u&s --6 ;a%san& 96

'>

)>>

)'>

male female

Respondent

''?>

&>1'

>

1>

&>

6>

?>

)>>

)? to 3' 3' to &' &' to '' '' :

above

Respondent


56/75

-. In?s$;n$ A?nus a?a*%a% *n $h ;ar$8 $ha$ *n?s$+r ar a)ar

+


57/75

3eturns

)oderate ris

Ta" benefits

Hassle free

$ast performance

>ell regulated

:o idea

.INFRENCE'

A((+r&*n@ $+ =+=% +< R+ur%a $h a$$ra($ )*$h =as$ =r


58/75

25 to 456

45 to C56

C56 abo!e

INFRENCE'

B $h*s ) (+; $+ n+) $ha$ ;+s$ +< $h =+=% us $+ @+


59/75

2. F+r In?s$;n$s *n Mu$ua% Fun&8 )h*(h (+;=an *n?s$+rs =r


60/75

4. H+) &+ *n?s$+rs ;ana@ h*s *n?s$;n$ =+r$


61/75

. Sa?*n@s*n?s$;n$ a?nus 4 ar a(:

Ban -D' Sa!ings

Insurance

)utual funds

E,uity maret

Lo!t. securities

3eal estate

$ostal sa!ings' -D

INFRENCE'

A((+r&*n@ $+ ; sur? +

+ow ris low return !L8L>

INFERENCE'

A((+r&*n@ $+ $h sur?8 ) (an (+n(%u& $ha$8 =+=% *n rura% aras

;+s$% %*? *n M+&ra$ r*s8 an& ;+&ra$ r$urns. E?n ;u$ua%


64/75

9. H+) sr*+us% =+=% *n R+ur%a $h*n@ a+u$ un&r@+*n@ a


65/75

9UESTIONARE


66/75

Muestionnaire

P%as

Na; * VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

A@ * W25*;5X S ) -

W ;5*F5

W F5*45

W 45*abo!eX

O((u=a$*+n * Ser!ice 1Lo!t.

Ser!ice 1$!t.

Business

Self*employed

3etired

Or@an*a$*+n * VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

Ds*@na$*+n , VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

Annua% In(+;* Below 9 lah

9 K ; lah

; K 4 lah

Abo!e 4 lah

-. #ha$ ar $h In?s$;n$ A?nus a?a*%a% *n $h ;ar$8 $ha$ +u ar a)ar +


67/75

$ostal schemes 1i.e. )IS$$-:S#3.DT.D etc.

Lo!ernment securities

Ban -D(s

Direct e,uity in!estment

)utual funds

Insurance

/. Ar +u a)ar +< $h


68/75

Insurance Deri!ati!es

E,uity maret

3eal estate

5. H+) &+ +u ;ana@ +ur *n?s$;n$ =+r$


69/75

4IN2ING:RE0OMMEN2ATION:7

0ON0LUSION


70/75

FINDINGSIn India )utual fund Industry has seen Dramatic impro!ements in Muality as well as ,uality of

products and ser!ices offering o!er the past decade' but the industry has witnessed growth in the

last 95 years considerably below potential. The Asset under )anagement ha!e grown from about

3s. FG5 billion in march 9; to 3s. 9'4F5 billion in April 255F1#AL3 of 99.F percent Q now

it grown to 3s. 4'25 billion till sep 255C. This has mainly achie!ed due to collection through

mutual fund I$@(s that has been increasing due to the in!estors feeling that it is cheaper in its

I$@ stage on account of its 3s. 95 :A%.

There has been a strong appreciation in e,uities in comparison to the debt maret' which has

shown a downward trend last year. And in turn )id*cap and di!ersified funds ha!e deli!ered the

highest in comparison to other funds. As the Indian economy is showing a growing trend with

LD$ more than 6 and e"pected to show C6 and Indian household sa!ing being 2F6 of the

entire LD$. There is a strong growth potential of )utual fund industry in India.

In @rissa i.e. rural area it is still a new concept so it will tae some more time to really penetrate

into this maret apart from people who are H:I(s though these people are gi!en more emphasisby all the )utual funds and distribution channels. >ith the introduction of SI$(s the industry has

created some options clear for retail in!estors to enter this maret. )y sur!ey says that it the

awareness le!el that is playing acting as an obstacle in the growth of )utual fund Industry in

@rissa as a whole.


71/75

S+; +< $h Ma+r F*n&*n@s

9. It is found that HD-# is a fa!orable )utual -und.

2. The basis obecti!e behind in!estments are mainly long*term capital appreciation' current

income Q to some e"tent ta" benefits.

;. The performance of HD-# #ore Q Satellite Q HD-# Top 255 -und is !ery good.

F. It is seen that the in!estment in growth fund is !ery high. Because the scope of income

and capital appreciation in the long term.

4. It is obser!ed that the dri!ing aspects of in!estments in mutual fund are safety' fund

performance' Ser!ice' +i,uidity' return Q ta" benefits.

. The type of in!estment plan that most in!estor s prefer is to get principal safety at all

time with low returns rather than high return with no safety.

G. HD-# )utual -und does not pro!ide Jmonthly income scheme( which other mutual

funds ha!e and performance is !ery appreciable.

C. -und )anagers ha!e suggested HD-# prudence 'HD-# Ta"sa!er ' HD-# E,uity for

in!estment ' -or the top 4.

. HD-# $rudence is performing good with comparition to the prudence fund of any other

mutual fund house.

95. At this period of time when maret condition is not so good' it is better for in!estors to

in!est through Systamatic In!estment plan. >hich reduces the maret ris.


72/75

RECOMMENDATION

HD-# )utual -und is one of the largest mutual funds and well*established fund house in the

country with consistent and abo!e a!erage fund performance across categories since its

incorporation on December 95'9.The single most important factor that dri!es HD-# )utual

-und is its belief to gi!e the in!estor the chance to profitably in!est in the financial maret'

without constantly worrying about the maret swings.

S+; ;a+r r(+;;n&a$*+n'

-> -und managers should continuous In!estor awareness $rograms to mae the

in!estors aware of technicalities of fund management and the return aspects.

/> Agents' Ser!ice personnel must be able to gi!e correct and timely information

about :A% and the return on different schemes.

1> )onthly income scheme should be introduced.

2> Scheme should be offered as per the needs and the re,uirement of the industries.

4> The regulatory norms pro!ided by the regulatory authorities lie SEBI arere,uired to be nown to all including in!estors.


73/75

CONCLUSIONThe global financial maret has transformed from Seller(s maret to Buyer(s maret with

liberali&ation' Llobali&ations and pri!ati&ation. The Indian mutual fund maret has also become

global when foreign funds entered' they came up with probably best mareting strategies to beat

Indian giants lie BI3+A' HD-#' and I#I#I ha!e come up with aggressi!e strategies to beat the

foreign funds. :ow the cutthroat competition goes on and on.

HD-# )utual funds ha!e rewarded in!estors with hand some returns. The good news is that this

is poised to become a trend. The mutual funds ha!e strengthened their distribution networs'

become more transparent and in!estor friendly and are rewarding in!estors. The mutual fund isfinally' pro!ing itself as a !ehicle of safety for in!estments. But it is still the fund manager(s

in!estment philosophy that maes the difference between the winner and the losers.

#areful maret analysis' consumer segmentation' identification of in!estor needs' ser!ice

designing are to be carried out for the successful implementation of different schemes by mutual

fund organi&ations. 3egulatory measures by SEBI should be clearly e"plained to the in!estors.

$ositioning of the schemes and their branding will help a lot for growth of the industry.

#reati!ity and inno!ation are the means of mareting in the days to come for Indian mutual fund

maret.


74/75

'I'LIOGRAP5Y


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'I'LIOGRAP5Y;-

MAGA

Study of HDFC Mutual Fund

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