CERTIFICATE

This is to certify that Amarjit Priyadarshan of +3,3rd year commerce exam roll no. 3116006
for the session 2016-19 has submitted this project entitled “COMPARATIVE ANALYSIS
OF MUTUAL FUND OF HDFC & ICICI”. This report has not been submitted earlier any
where for any purpose. It is forwarded to the controller of examination M.P.C. Autonomous
College, Baripada after evaluation.

Miss. MANISHA SHARMA

(Lecturer)
Department of Commerce
M.P.C. Autonomous college,
Baripada

1
 DECLARATION

I Amarjit Priyadarshan do here by declared that the project report entitled “COMPARATIVE
ANALYSIS OF MUTUAL FUND OF HDFC & ICICI” submitted by me to M.P.C.
Autonomous College, Baripada in partial fulfillment of the requirement for +3,3rd year
commerce this project is original genuine.

I also declare that the project report submitted by me is of my own and it is not submitted by
any other institution including the university at any time before.

HOWEVER, I ACCEPT THE SOLE RESPONSIBILITY OF

ANY POSSIBLE ERROR OR OMISSION

Date Amarjit Priyadarshan

Place- Baripada +3,3rd Year Commerce

Class Roll No. BC16-094

Exam Roll No. 3116006
Regd. No.- 11981/16

2
 ACKNOWLEDGMENT

I deemed this project work to be unique pleasure and privilege to express indebtedness to my
project guide Miss Manisha Sharma Lecturer in Commerce and Dr. P.K Uphadhaya under
whose guidance, supervision, interest, and constructive criticism. I have been able to complete
the assignment within stipulated time.

Amarjit Priyadarshan

+3,3rd Year Commerce

Class Roll No. BC16-094

Exam Roll No. 3116006
Regd. No.- 11981/16

3
 PREFACE

Many individuals own mutual funds today. Indeed, the mutual fund industry which
reached $3.64 trillion in assets by 2009,comprises the bulk of many investors financial
assets, whether for retirement or taxable savings purposes .To a large extent, mutual
funds are the investment vehicle for the majority of house holds in the India.
In the introductory chapter, I have consider the role of
mutual fund in today’s investing environment, learn just how popular mutual funds
have become and consider why investors have chosen to put so much money into funds.
Clearly, mutual funds are a major financial asset for numerous investors, and in many
ways they play the dominant role in today’s investing world for millions of house holds.
I have also told about the basics of mutual funds, defining
terms and discussing the mechanics about how funds work. I have also considered other
alternatives .I have mainly focused up on the study that which company’s mutual
investments are mostly preferable by investors. Today investors are becoming rational
& they see all the parameters before investing .I had also reviewed the types of mutual
funds, structure of mutual funds and their current scenario.
The over all objective of my study on this project is to know which
company provides better investment opportunities from HDFC & ICICI and make the
investors to be able to take better decisions .Of course, as every study needs, I’d adopted
an objective view of over all situation that examines both sides of the issue situated in
HDFC &ICICI.

4
CHAPTER
TITLE PAGE NO.
NO.

1 INTRODUCTION TO TOPIC 6

INTRODUCTION TO
2 15
COMPANIES

3 REVIEW OF LITERATURE 18

4 NEED,SCOPE,OBJECTIVE OF STUDY 20

5 RESEARCH METHODOLOGY 22

6 ANALYSIS 25

FINDINGS,LIMITATIONS,RECOMMENDATIONS,
7 47
CONCLUSION

8 BIBLIOGRAPHY 50

5
 CHAPTER 1

INTRODUCTION TO
TOPIC

6
 INTRODUCTION

The Indian financial system based on four basic components like Financial Market, Financial
Institutions, Financial Service, Financial Instruments. All are play important role for smooth
activities for the transfer of the funds and allocation of the funds. The main aim of the Indian
financial system is that providing the efficiently services to the capital market. The Indian
capital market has been increasing tremendously during the second generation reforms. The
first generation reforms started in 1991 the concept of LPG. (Liberalization, privatization,
Globalization)

Then after 1997 second generation reforms was started, still the it’s going on, its include
reforms of industrial investment, reforms of fiscal policy, reforms of ex- imp policy, reforms
of public sector, reforms of financial sector, reforms of foreign investment through the
institutional investors, reforms banking sectors. The economic development model adopted
by India in the post independence era has been characterized by mixed economy with the
public sector playing a dominating role and the activities in private industrial sector control
measures emaciated form time to time. The last two decades have been a phenomenal
expansion in the geographical coverage and the financial spread of our financial system.

The spared of the banking system has been a major factor in promoting financial
intermediation in the economy and in the growth of financial savings with progressive
liberalization of economic policies, there has been a rapid growth of capital market, money
market and financial services industry including merchant banking, leasing and venture
capital, leasing, hire purchasing. Consistent with the growth of financial sector and second
generation reforms its need to fruition of the financial sector. Its also need to providing the
efficient service to the investor mostly if the investors are supply small amount, in that point
of view the mutual fund play vital for better service to the small investors. The main vision
for the analysis for this study is to scrutinize the performance of five star rated mutual funds,
given the weight of risk, return, and assets under management, net assets value, book value
and price earnings ratio.

7
What is mean by mutual fund?

Mutual funds are pools of money that are managed by an investment company. They offer
investors a variety of goals, depending on the fund and its investment charter. Some funds,
for example, seek to generate income on a regular basis. Others seek to preserve an investor's
money. Still others seek to invest in companies that are growing at a rapid pace. Funds can
impose a sales charge, or load, on investors when they buy or sell shares. Many funds these
days are no load and impose no sales charge. Mutual funds are investment companies
regulated by the Investment Company Act of 1940. Related: open-end fund, closed-end fund.

Concept of mutual funds

A mutual fund is a trust that pools the savings of a no. of investors, who share a common
financial goal. The money thus collected is then invested in capital market instruments such
as shares, debentures and other securities. The income earned through these investments and
the capital appreciations realized are shared by its unit holders in proportion to the number of
units owned by them. Thus a mutual fund is the most suitable investment for the common
man as it offers an opportunity to invest in diversified, professionally managed basket of
securities at a relatively low cost.

Historical Aspect

Mutual fund firstly was established in 1822 in the form of Society General De Belguique.
It mainly gains the progress in Switzerland & little in franc and Germany in its initial days.
The first investment trust “The foreign and colonial govt. trust” Was founded in London in
1868.

8
Indian Scenario of Mutual Fund

The origin of mutual fund industry in India is with the introduction of the concept of by
UTI in the year 1963. Through the growth was slow, but it accelerated from the year 1987
when non-UTI players entered in industry. The mutual fund industry goes through four
phases:-

 First phase 1964-87 (Establishment of UTI).

 Second phase 1987-93 (Entry of public sector funds).
 Third phase 1993-2003 (Entry of a private sector funds).
 Fourth phase since feb.2003 (Bifurcated of UTI).

In the first phase, UTI was established in 1963 by an act of parliament. In

1978 it was delinked from RBI & the IDBI took over the control of UTI. In second
phase, SBI entered as first non-UTI mutual fund provider then it was followed by can
bank (Dec. 87). PNB (Aug 89) & LIC in 1989. In third phase, the private sector entered
in it. The Erstwhile Kothari pioneer (now merged with Franklin Templeton) was first
registered in July 1993 in mutual fund. In revised registration of SEBI I n 1993 the
industry functions under SEBI. And the fourth phase had bitter experience for UTI. It
was bifurcated into two separate entities. One is the specified under taking of UTI with
AUM of 29,835cr. The second is UTI mutual fund ltd. Sponsored by SBI, PNB, BOB and
LIC& it is registered with SEBI.

9
 Types of
Mutual Fund

Structure Investment Special schemes

objective
Open Ended Growth Industry specific
Specific

Close Income Index schemes

Internal Balanced
Sector schemes

Money Market

ADVANTAGES OF MUTUAL FUNDS

Mutual funds have designed to provide maximum benefits to investors, and fund manager have
research team to achieve schemes objective. Assets Management Company has different type
of sector funds, which need to proper planning for strategic investment and to achieve the
market return.

Portfolio Diversification

Mutual Funds invest in a well-diversified portfolio of securities which enables investor to hold
a diversified investment portfolio (whether the amount of investment is big or small).

10
Professional Management

Fund manager undergoes through various research works and has better investment
management skills which ensure higher returns to the investor than what he can manage on his
own.

Less Risk

Investors acquire a diversified portfolio of securities even with a small investment in a Mutual
Fund. The risk in a diversified portfolio is lesser than investing in merely 2 or 3 securities.

Low Transaction Costs

Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser transaction
costs. These benefits are passed on to the investors.

Liquidity

An investor may not be able to sell some of the shares held by him very easily and quickly,
whereas units of a mutual fund are far more liquid.

DISADVANTAGES OF MUTUAL FUNDS

The mutual fund not just advantage of investor but also has disadvantages for the funds. The
fund manager not always made profits but might creates loss for not properly managed. The
fund have own strategy for investment to hold, to sell, to purchase unit at particular time period.

Costs Control Not in the Hands of an Investor

Investor has to pay investment management fees and fund distribution costs as a percentage of
the value of his investments (as long as he holds the units), irrespective of the performance of
the fund

No Customized Portfolios

The portfolio of securities in which a fund invests is a decision taken by the fund manager.
Investors have no right to interfere in the decision making process of a fund manager, which
some investors find as a constraint in achieving their financial objectives.

Difficulty in Selecting a Suitable Fund Scheme

11
 Many investors find it difficult to select one option from the plethora of
funds/schemes/plans available. For this, they may have to take advice from financial
planners in order to invest in the right fund to achieve their objectives.

ORIGIN OF MUTUAL FUND IN INDIA

The history of mutual funds dates backs to 19th century when it was introduced in Europe, in
particular, Great Britain. Robert Fleming set up in 1968 the first investment trust called Foreign
and Colonial Investment Trust which promised to manage the finances of the moneyed classes
of Scotland by spreading the investment over a number of different stocks. This investment
trust and other investments trusts which were subsequently set up in Britain and the US,
resembled today’s close – ended mutual funds. The first mutual in the U.S., Massachustsettes
investor’s Trust, was set up in March 1924. This was the open – ended mutual fund.
The stock market crash in 1929, the Great Depression, and the outbreak of the Second World
War slackened the pace of mutual fund industry, innovations in products and services
increased the popularity of mutual funds in the 1990s and 1960s. The first international stock
mutual fund was introduced in the U.S. in 1940. In 1976, the first tax – exempt municipal
bond funds emerged and in 1979, the first money market mutual funds were created. The
latest additions are the international bond fund in 1986 and arm funds in 1990. This industry
witnessed substantial growth in the eighties and nineties when there was a significant
increase in the number of mutual funds, schemes, assets, and shareholders. In the US, the
mutual fund industry registered a ten – fold growth the eighties. Since 1996, mutual fund
assets have exceeded bank deposits. The mutual fund industry and the banking industry
virtually rival each other in size.

12
GROWTH OF MUTUAL FUNDS IN INDIA

By the year 1970, the industry had 361 Funds with combined total assets of 47.6 billion dollars
in 10.7 million shareholder’s account. However, from 1970 and on wards rising interest rates,
stock market stagnation, inflation and investors some other reservations about the profitability
of Mutual Funds, Adversely affected the growth of mutual funds. Hence Mutual Funds realized
the need to introduce new types of Mutual Funds, which were in tune with changing
requirements and interests of the investors. The 1970’s saw a new kind of fund innovation;
Funds with no sales commissions called “ no load “ funds. The largest and most successful no
load family of funds is the Vanguard Funds, created by John Bogle in 1977.

In the series of new product, the First Money Market Mutual Fund (MMMF) i.g. The Reserve
Fund” was started in November 1971. This new concept signaled a dramatic change in Mutual
Fund Industry. Most importantly, it attracted new small and individual investors to mutual fund
concept and sparked a surge of creativity in the industry.

Role of SEBI

A index fund scheme’ means a mutual fund scheme that invests in securities in the same
proportion as an index of securities;” A mutual fund may lend and borrow securities in
accordance with the framework relating to short selling and securities lending and borrowing
specified by the Board.”A mutual fund may enter into short selling transactions on a recognized
stock exchange, subject to the framework relating to short selling and securities lending and
borrowing specified by the Board.” “Provided that in case of an index fund scheme, the
investment and advisory fees shall not exceed three fourths of one percent (0.75%) of the
weekly average net assets.“

“Provided further that in case of an index fund scheme, the total expenses of the scheme
including the investment and advisory fees shall not exceed one and one half percent (1.5%)

13
of the weekly average net assets.” Every mutual fund shall buy and sell securities on the basis
of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all
cases of sale, deliver the securities: Provided that a mutual fund may engage in short selling of
securities in accordance with the framework relating to short selling and securities lending and
borrowing specified by the Board

Role of AMFI (Association of Mutual Fund in India)

The Association of Mutual Funds in India (AMFI) is dedicated to developing the

Indian Mutual Fund Industry on professional, healthy and ethical lines and to enhance
and maintain standards in all areas with a view to protecting and promoting the
interests of mutual funds and their unit holders.

AMFI working group on Best Practices for sales and marketing of Mutual Funds under the
Chairmanship of Shri B. G. Daga, Former Executive Director of Unit Trust of India with Shri
Vivek Reddy of Pioneer ITI, Shri Alok Vajpeyi of DSP Merrill Lynch, Shri Nikhil Khattau of
Sun F & C and Shri Chandrashekhar Sathe, Formerly of Kotak Mahindra Mutual Fund has
suggested formulation of guidelines and code of conduct for intermediaries and this work has
been ably done by a sub-group consisting of Shri B. G. Daga and Shri Vivek Reddy.

14
 CHAPTER 2
INTRODUCTION TO
COMPANIES

15
 HDFC Mutual Fund

HDFC mutual fund was set up on June 30, 2000 with two sponsors namely
Housing Development Finance Corporation ltd. and Standard Life Insurance ltd. HDFC
mutual fund came into existence on 10 Dec. 1999 and got approval from the SEBI on 3rd
July 2000.
Housing Development Finance Corporation Limited, more popularly known as
HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the
Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to
receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The
bank was incorporated with the name 'HDFC Bank Limited', with its registered office in
Mumbai. The following year, it started its operations as a Scheduled Commercial Bank.
Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India.

Products and Schemes of HDFC mutual fund

 Equity funds.
 Balanced funds.
 Debt funds.
 Liquid funds.

Prudential ICICI Mutual Fund

The mutual fund of ICICI is a joint venture with

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

16
 Products and Schemes of HDFC mutual fund

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

Other Players in Mutual Fund

 Bank of Baroda mutual fund (BOB MF) 30OCT. 1992.

 Benchmark mutual funds (June 12, 2001).
 Birla Sun life MF (1871).
 Chola mutual fund (3 Jan. 1997).
 Can bank mutual fund (Dec. 19, 1987).
 LIC mutual fund (19th June, 1989).
 Reliance mutual fund (30June, 1995).
 Sahara mutual fund (18 July, 1996).
 GIC (General Insurance Corporation of India). Etc.

17
 CHAPTER 3
REVIEW OF
LITERATURE

18
COMPANY PROFILE
ICICI Bank is India's second-largest bank with total assets of about Rs. 1 trillion and a network
of about 540 branches and offices and over 1,000 ATMs. 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 specialized subsidiaries and affiliates in the areas
of investment banking, life and non-Banking , venture capital, asset management and
information technology. ICICI Bank's equity shares are listed in India on stock exchanges at
Chennai, Muzaffarnagar, Kolkata and Vadodara, the Stock Exchange, Mumbai and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE).

HDFC Bank’s exposure to market risk a function of its trading and asset and liability
management activities and its role as a financial intermediary in customer-related transactions.
HDFC had tried its best in mutual fund sector. It has grown up its market share in a meanwhile
time. The objective of market risk management is to minimize the impact of losses due to
market risks on earning and equity capital.

19
 CHAPTER 4
NEED OF STUDY
SCOPE OF STUDY
OBJECTIVE OF STUDY

20
Need of the study

 The need of study arises for learning the variables available that distinguish the
mutual fund of two companies.
 To know the risk & return associated with mutual fund.
 To chose best company for mutual investment between HDFC & ICICI.
 To project mutual fund as the ‘productive avenue for investing activities.

Scope of the study

 To make people aware about concept of mutual fund.

 To provide information regarding advantages and demerits of mutual fund.
 To advice where to invest or not to invest.
 To provide information regarding types of mutual fund which is beneficial for whom.

Objectives

 To analysis which provides better returns from HDFC &ICICI.

 To analyze the concept and parameters of mutual fund.
 To know how many people are satisfied by their investment (in HDFC or ICICI).
 To know people behavior regarding risk factor involved in mutual fund.
.

21
 CHAPTER 5
RESEARCH
METHODOLOGY

22
Research refers to search for knowledge. One can also define research as a scientific and
systematic search for pertinent information on a specific topic. It is an art of scientific
investigation.

Research Methodology:-
It is the way to systematically solve a problem. The methodology adopted in this study
is explained below:-

 Research Design

A. Problem Defining:

In a competitive situation with multiple mutual funds operating in

Indian market, it is necessary to know about the performance of different mutual
funds as the performance of mutual fund decides about the future of Mutual
Fund Company. In this study my focus is upon performance of investors
regarding HDFC &ICICI. This is my problem to be studied for research.

B. Literature Survey:

I have used newspapers, magazines related to business & finance

& apart from websites.

C. Type of research:
The research is qualitative & descriptive in nature. Qualitative
research is that talk about the quality of the subject to be researched and
Descriptive research is one that describes things as exists in present.

D. Data collection Design:

I. Sources of data =

23
  Primary Sources – I have used questionnaire as primary
source for collecting data for my study.
 Secondary sources – I had collected my secondary data from
websites & journals.

II. Sampling =

It represents whole population. It is the processes of choosing a

sample from whole population .I have choose a sample of high class &
middle class people who have invested in mutual funds as a sample.

III. Tools =

I have used some charts (Pie chart, column chart, cylinder chart,
cone chart) and hypothesis tests (chi-square one sample T- test etc.)

IV. Sampling Size =

It represents that how many candidates you’ve chosen to be

filled up your questionnaire or candidates upon whom you can study. I
had chosen sample of 100 candidates.

V. Sampling Techniques =

 Deliberate &
 Convenience Sampling.

VI. Data Interpretation =

Data interpretation is that in which we analysis the whole

collected data & tries to give it in simple words to be understandable.

24
 CHAPTER 6
ANALYSIS

25
1. Do you invest in mutual fund?

YES 100

NO 0

120
100
100

80
YES
60
NO
40

20

Interpretation:-

All the candidates who are asked to fill the questionnaire have invested in mutual fund.

26
2. With which company do you have invested in mutual funds?

HDFC 65
ICICI 35
Reliance 0
SBI 0
LIC 0
Kotak Mahindra 0
Others 0

70 65

60
HDFC
50 ICICI
Reliance
40 35
SBI
30 LIC
20 Kotak Mahindra
Others
10
0 0 0 0 0
0

Interpretation:

Out of 100 candidates up to 65have invested in mutual fund with HDFC & 35 have invested
with ICICI. There is no investor who have invested in mutual fund with any another
company.

27
 VAR00001

Observed N Expected N Residual

HDFC
65 50.0 15.0

ICICI
35 50.0 -15.0

Total
100

Test Statistics

VAR00001

Chi-Square 9.000a

df 1

Asymp. Sig. .003

a. 0 cells (.0%) have expected frequencies less than 5.

The minimum expected cell frequency is 50.0.

28
3. What is your age?

.
15-25 8

25-35 12

35-45 60

More than 45 20

60
60

50

40 15-25
25-35
30
35-45
20
20 More than 45
12
10 8

29
Interpretation:

60 investors are of age between 35-45. 20 are of age more than 45. 12 are of between of 25-
35. 8 are of 15-25. This data shows that many investors are of middle age & there are less
investors of young age in mutual fund.

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference
Mean
t df Sig. (2-tailed) Difference Lower Upper

VAR00001
36.500 99 .000 2.92000 2.7613 3.0787

30
4. What is your income? (Yearly based)

1 lakh 0

2-4 lakh 10

4-5 lakh 20

More than 5 70

70
70

60

50
1 lakh
40 2-4 lakh

30 4-5 lakh
20 More than 5
20
10
10
0
0

Interpretation:

Up to 70 investors have income more than 5 lakh. 20 have between 4-5 lakh.10 investors
have income between 2-4 lakh & there is no investor who have income up to 1akh.

31
 VAR00001

Observed N Expected N Residual

1 lakh 8 25.0 -17.0

2-4 lakh 12 25.0 -13.0

4-5 lakh 60 25.0 35.0

more than 5 20 25.0 -5.0

Total 100

Test Statistics

VAR00001

Chi-Square 68.320a

df 3

Asymp. Sig. .000

a. 0 cells (.0%) have expected frequencies less than 5.

The minimum expected cell frequency is 25.0.

32
5. From where you come to know about this company’s mutual fund schemes?

Family & relatives 35

Friends & peers 40

Company employee 15

Others 10

40
40
35
35

30 Family & relatives

25
Friends & peers
20
15 Company employee
15
10
10 Others

Interpretation:

Many investors (up to 40) have been come to know about the company to be invested by their
friends & peers.35 have been known by their family & relatives .15have been come to know
by company employees & 10 by others. This means many have come to know by their
friends & peers.

33
 VAR00001

Observed N Expected N Residual

Family & relatives 35 25.0 10.0

friends & peers 40 25.0 15.0

Company employee 15 25.0 -10.0

Others 10 25.0 -15.0

Total 100

VAR00001

Observed N Expected N Residual

Family & relatives 35 25.0 10.0

friends & peers 40 25.0 15.0

Company employee 15 25.0 -10.0

Others 10 25.0 -15.0

Total 100

34
6. What is the time duration of your investment?

0-1 year 15

1-2 year 35

2-4year 30

more than 4 20

35
35
30
30
25
0-1 year
20
20 1-2 year
15
15 2-4year
more than 4
10
5
0

Interpretation:

15 investors have time of investment less than one year. 20 have time duration of their
investment between of 1-2 year. 30 have between 2-4 year & 35 have more than 4 years.
So, we can say that 35 investors have more experience than others.

35
 VAR00001

Observed N Expected N Residual

0-1 year 15 25.0 -10.0

1-2 year 35 25.0 10.0

2-4 year 30 25.0 5.0

more than 4
20 25.0 -5.0

Total
100

Test Statistics

VAR00001

Chi-Square 10.000a

df 3

Asymp. Sig. .019

a. 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 25.0.

36
7. Are you satisfied by service of the company’s employees / people’s behavior?

Highly satisfied 15

Satisfied 35

Neutral 30

Dissatisfied 15

Highly Dissatisfied 5

35
35
30
30 Highly satisfied

25 Satisfied
20
15 15 Neutral
15

10 Dissatisfied
5
5 Highly Dissatisfied

Interpretation:

Out of 100 investors 15 are highly satisfied. 35 are satisfied. 30 are neutral towards
employee behavior of a company. 15 are dissatisfied. 5 are highly dissatisfied. We say that
many people are satisfied by employee behavior.

37
 VAR00002

Observed N Expected N Residual

highly satisfied 15 20.0 -5.0

satisfied 35 20.0 15.0

neutral 30 20.0 10.0

dissatisfied
15 20.0 -5.0

highly dissatisfied 5 20.0 -15.0

Total
100

Test Statistics

VAR00002

Chi-Square 30.000a

df 4

Asymp. Sig. .000

a. 0 cells (.0%) have expected frequencies less than

5. The minimum expected cell frequency is 20.0.

38
8. What is your risk profile?

Innovator 20

Moderate 65

Risk adverse 15

70 65

60

50
Innovator
40
Moderate
30 Risk adverse
20
20 15

10

0
Innovator Moderate Risk adverse

Interpretation:

20% investors are innovator means they like to take risk for more returns. 15% are moderate
towards risk means they are indifferent towards risk. 65% are risk adverse means they mainly
try to avoid risk.

39
 VAR00002

Observed N Expected N Residual

innovator
20 33.3 -13.3

moderate
65 33.3 31.7

risk adverse
15 33.3 -18.3

Total
100

Test Statistics

VAR00002

Chi-Square 45.500a

df 2

Asymp. Sig. .000

a. 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 33.3.

40
9. What you feel about the company norms, documentation & formalities?

Highly Satisfied 15

Satisfied 25

Neutral 40

Dissatisfied 15

Highly dissatisfied 5

5% Highly Satisfied
15%
15%
Satisfied

Neutral
25%
Dissatisfied

40% Highly
Dissatisfied

Interpretation:

15% investors are highly satisfied by company’s documentation policy (filling up the forms
etc.). 25% are satisfied, 40% never cares about it or are moderate towards it , 15% are
dissatisfied by it & 5% are highly dissatisfied.

41
 VAR00002

Observed N Expected N Residual

highly satisfied 15 20.0 -5.0

satisfied 25 20.0 5.0

neutral 40 20.0 20.0

dissatisfied 15 20.0 -5.0

highly dissatisfied 5 20.0 -15.0

Total 100

Test Statistics

VAR00002

Chi-Square 35.000a

df 4

Asymp. Sig. .000

a. 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 20.0.

42
10. What you say which provides better returns?

HDFC 68

ICICI 32

70 68

60

50

40 HDFC
32
ICICI
30

20

10

Interpretation:

According to collected data 68 investors thinks that HDFC provides better returns where as
32 to think that ICICI provides better returns.

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 VAR00001

Observed N Expected N Residual

HDFC
68 50.0 18.0

ICICI
32 50.0 -18.0

Total
100

Test Statistics

VAR00001

Chi-Square 12.960a

df 1

Asymp. Sig. .000

a. 0 cells (.0%) have expected frequencies less than 5.

The minimum expected cell frequency is 50.0.

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11. Would you like to exchange your investment with one another between
HDFC & ICICI?

Yes 15

No 85

90 , 85
80

70

60

50 Yes
No
40

30

20 15
10

Interpretation:

15 investors said that they would like to change their investment with each another between
HDFC & ICICI. But 85 investors say that they are ok with their companies and they wouldn’t
like to exchange their investment.

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 VAR00001

Observed N Expected N Residual

Yes
15 50.0 -35.0

No
85 50.0 35.0

Total
100

Test Statistics

VAR00001

Chi-Square 49.000a

df 1

Asymp. Sig. .000

a. 0 cells (.0%) have expected frequencies less

than 5. The minimum expected cell frequency is
50.0.

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 CHAPTER 7
FINDINGS
LIMITATIONS
RECOMMENDATIONS
CONCLUSION

47
Findings: - In my research I have founded following things:-

 Investors have more faith HDFC’s mutual fund.

 As the age increases investors are much satisfied, see more risk & become more
risk adverse.
 Old people &Widows prefer lower risk.
 Investors are not highly satisfied by company rules & employee behavior.
 Investors think that HDFC provides better returns than ICICI.

Limitations: - There are some limitations of my study, those are as

Following:-
 Sample limitation: - which sample is taken by me is very small in size to
Compare mutual fund of two companies.
 Reliability: - The data collected by me is not much reliable because many
investors chosen by me have invested in HDFC.
 Parameters: - All the parameters have not been taken.
 Time limitation: - I had the shortage of time because of that I was not able to do
my study in a good manner.
 Awareness: - Investors chosen for study are not fully aware of all the terms and
conditions related to mutual fund .So, it is very difficult to construct right
information from them.

Recommendations / Suggestions: - In my study I have found some limitations. For that I

can suggest both companies following suggestions or areas of improvement:-

 ICICI bank should try to provide better returns to its investors as compare to
HDFC.
 Both companies should try to invest in better securities for better profits.
 Both companies should try to satisfy their customer by better customer service or
by improving customer relationship management.
 Companies should try to make people initiative towards risk.

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  Investors should be made fully aware of the concept of mutual fund & all the
terms and conditions.
 It should more emphasize in advertising, as it is the most
Powerful tool to position ant brand in the mindsets of customers

Conclusion: - To conclude we can say that mutual fund is a very much profitable tool for
investment because of its low cost of acquiring fund, tax benefit, and diversification of profits
& reduction of risk. Many investors who have invested in mutual fund have invested with
HDFC and them also thinks that it provides better returns than ICICI .There is also an affect
of age on mutual fund investors like; old people & widows want regular returns than capital
appreciation. Companies can adopt new techniques to attract more & more investors. In my
study I was suppose to do comparative analyses the mutual fund of HDFC &ICICI and I had
found that people consider HDFC better than ICICI. But ICICI have also respondents and it
can increase its investors by improving itself in some terms.

 To conclude we can say mutual fund is a best investment vehicle for old & widow, as
well as to those who want regular returns on their investment.
 Mutual fund is also better and preferable for those who want their capital
appreciation.
 Both the companies are doing considerable achievements in mutual fund industry.
 There are also so many competitors involved those affects on both companies.

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 CHAPTER 8
BIBLIOGRAPHY

50
Bibliography:-

Books:-
 C.R.Kothari, Research Methodology. New Delhi, Vikas
Publishing house Pvt.Ltd.2017.
 Bogle on Mutual Funds – John C. Bogle
 ICICI and HDFC Brochure .

Websites:-
www.wiki.answers.
com
www.scribd.com
www.hdfc.com
www.icici.com
www.google.com

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