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TABLE OF C O N T E N T S

Chapter No. Title Page No.

1. Introduction
1.1 Introduction of the study 2-7
1.2 Objective of the study 8
1.3 Scope of the study 9
1.4 Limitation of the study 10

2. Profile of the Organization 12


2.1 History & General information 13-16
2.2 Company Profile 17-20
2.2 Scheme offered by HDFC mutual 21-45
fund
3 Review of literature 46-48

4. Research Methodology 49-50

5. Findings 51-52

6. Conclusion 53-54

7. Reference 55-56

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CHAPTER I

INTRODUCTION

1.1 Introduction of Mutual Funds:

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Mutual funds pool money from the investing public and use that money to buy other
securities, usually stocks and bonds. The value of the mutual fund company depends on the
performance of the securities it decides to buy. So, when you buy a unit or share of a mutual
fund, you are buying the performance of its portfolio or, more precisely, a part of the portfolio's
value. Investing in a share of a mutual fund is different from investing in shares of stock. Unlike
stock, mutual fund shares do not give its holders any voting rights. A share of a mutual fund
represents investments in many different stocks (or other securities) instead of just one holding.

That's why the price of a mutual fund share is referred to as the net asset value (NAV) per share,
sometimes expressed as NAVPS. A fund's NAV is derived by dividing the total value of the
securities in the portfolio by the total amount of shares outstanding. Outstanding shares are those
held by all shareholders, institutional investors, and company officers or insiders. Mutual fund
shares can typically be purchased or redeemed as needed at the fund's current NAV, which—
unlike a stock price—doesn't fluctuate during market hours, but it is settled at the end of each
trading day.

The average mutual fund holds hundreds of different securities, which means mutual fund
shareholders gain important diversification at a low price. Consider an investor who buys only
Google stock before the company has a bad quarter. He stands to lose a great deal of value
because all of his dollars are tied to one company. On the other hand, a different investor may
buy shares of a mutual fund that happens to own some Google stock. When Google has a bad
quarter, she loses significantly less because Google is just a small part of the fund's portfolio.

How Mutual Funds Work

A mutual fund is both an investment and an actual company. This dual nature may seem strange,
but it is no different from how a share of AAPL is a representation of Apple Inc. When an
investor buys Apple stock, he is buying partial ownership of the company and its assets.
Similarly, a mutual fund investor is buying partial ownership of the mutual fund company and its
assets. The difference is that Apple is in the business of making innovative devices and tablets,
while a mutual fund company is in the business of making investments.

Investors typically earn a return from a mutual fund in three ways:

1. Income is earned from dividends on stocks and interest on bonds held in the fund's
portfolio. A fund pays out nearly all of the income it receives over the year to fund
owners in the form of a distribution. Funds often give investors a choice either to receive
a check for distributions or to reinvest the earnings and get more shares.
2. If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.

1.1.1 What Is a Mutual Fund?

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A mutual fund is a type of financial vehicle made up of a pool of money collected from
many investors to invest in securities like stocks, bonds, money market instruments, and other
assets. Mutual funds are operated by professional money managers, who allocate the fund's
assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's
portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Mutual funds give small or individual investors access to professionally managed portfolios of
equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in
the gains or losses of the fund. Mutual funds invest in a vast number of securities, and
performance is usually tracked as the change in the total market cap of the fund—derived by the
aggregating performance of the underlying investments.

TYPES OF MUTUAL FUNDS:

1. Money market funds


These funds invest in short-term fixed income securities such as government bonds, treasury
bills, bankers’ acceptances, commercial paper and certificates of deposit. They are generally a
safer investment, but with a lower potential return then other types of mutual funds. Canadian
money market funds try to keep their net asset value (NAV) stable at $10 per security.

2. Fixed income funds


These funds buy investments that pay a fixed rate of return like government bonds, investment-
grade corporate bonds and high-yield corporate bonds. They aim to have money coming into the
fund on a regular basis, mostly through interest that the fund earns. High-yield corporate bond
funds are generally riskier than funds that hold government and investment-grade bonds.

3. Equity funds
These funds invest in stocks. These funds aim to grow faster than money market or fixed income
funds, so there is usually a higher risk that you could lose money. You can choose from different
types of equity funds including those that specialize in growth stocks (which don’t usually pay
dividends), income funds (which hold stocks that pay large dividends), value stocks, large-cap
stocks, mid-cap stocks, small-cap stocks, or combinations of these.

4. Balanced funds
These funds invest in a mix of equities and fixed income securities. They try to balance the aim
of achieving higher returns against the risk of losing money. Most of these funds follow a
formula to split money among the different types of investments. They tend to have more risk
than fixed income funds, but less risk than pure equity funds. Aggressive funds hold more
equities and fewer bonds, while conservative funds hold fewer equities relative to bonds.

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5. Index funds
These funds aim to track the performance of a specific index such as the S&P/TSX Composite
Index. The value of the mutual fund will go up or down as the index goes up or down. Index
funds typically have lower costs than actively managed mutual funds because the portfolio
manager doesn’t have to do as much research or make as many investment decisions.

6. Specialty funds
These funds focus on specialized mandates such as real estate, commodities or socially
responsible investing. For example, a socially responsible fund may invest in companies that
support environmental stewardship, human rights and diversity, and may avoid companies
involved in alcohol, tobacco, gambling, weapons and the military.

7. Fund-of-funds
These funds invest in other funds. Similar to balanced funds, they try to make asset allocation
and diversification easier for the investor. The MER for fund-of-funds tend to be higher than
stand-alone mutual funds.

1.1.2 Importance of Mutual Fund:

Mutual funds provide a host of benefits which make them important. Let’s look at the

importance of mutual funds as listed below.

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Convenience: 
For investors, one of the most prominent benefits that mutual funds provide is convenience. By

investing in a single fund, they can gain access to a broad range of the financial market. A typical

diversified equity fund can spread out the money across tens of stocks with some portion

invested in fixed income securities as well.

Diversification:
Further, if an investor wants to focus on one segment of the market, for instance, large-cap

stocks, funds focused on this segment can spread out the investment across multiple large-cap

stocks in just one transaction of purchasing the fund. If the investor were to try to do that

themselves, it would take a lot of effort, transaction cost, and time to create an individual large-

cap stock portfolio. The situation with investing in bonds is even more difficult if one tries to do

it individually rather than taking the fund route.

Ease of Investment:
Apart from this, mutual funds are easy to buy and sell. One can either engage the services of a

distributor or agent to transact in funds or do it over the internet themselves. In the case of latter,

the transaction amount is debited from or comes directly to the bank account linked to the mutual

fund account depending on whether a fund has been bought or sold.

Spoilt For Choice:


This feature follows from the convenience aspect discussed above. Investors have several

choices when it comes to mutual funds. And given their investment objectives, funds provide

access to a wide range of financial instruments, sectors, and strategies.

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Professional Management:
This is one of the factors, which is a key highlight of the importance of mutual funds. Due to

lack of expertise several investors don’t have the confidence in taking the financial market route

to grow their wealth. They feel they have limited or no capability to invest in stocks and bonds

on their own and do not have the time to keep tracking their investments even if they manage to

invest on their own.

Mutual funds take care of this issue by providing the expertise of the fund manager and their

team of analysts, which perform the analysis of financial markets and instruments on a daily

basis. They charge a fee for their professional services, which are bundled into the expense ratio

of a mutual fund.

1.2 Objective of study:

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The objectives of the study is to analyses, in detail the growth pattern of mutual fund
industry in India and to evaluate performance of different schemes floated by most preferred
mutual funds in public fund in public and private sector. The main objectives of this project are:

 To study about the Mutual Funds in India

 To study the various Mutual Funds schemes in India.

 To study about the risk factors involved in the Mutual Funds and How to analyze it?

 To study the performance indices that can be used for mutual fund comparison.

 To study the various scheme offered by the HDFC in mutual fund.

 To study the returns portfolio of the HDFC mutual fund.

1.3 Scope of the study:

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Liquidity
Unless you opt for close-ended mutual funds, it is relatively easier to buy and exit a mutual fund
scheme. You can sell your units at any point (when the market is high). Do keep an eye on
surprises like exit load or pre-exit penalty. Remember, mutual fund transactions happen only
once a day after the fund house releases that day’s NAV.

Diversification
Mutual funds have their share of risks as their performance is based on the market movement.
Hence, the fund manager always invests in more than one asset class (equities, debts, money
market instruments, etc.) to spread the risks. It is called diversification. This way, when one asset
class doesn’t perform, the other can compensate with higher returns to avoid the loss for
investors.

Less cost for bulk transactions


You must have noticed how price drops with increased volume when you buy any product. For
instance, if 100g toothpaste costs Rs.10, you might get a 500g pack for, say, Rs.40. The same
logic applies to mutual fund units as well. If you buy multiple units at a time, the processing fees
and other commission charges will be less compared to when you buy one unit.

Invest in smaller denominations


By investing in smaller denominations (SIP), you get exposure to the entire stock (or any other
asset class). This reduces the average transactional expenses – you benefit from the market lows
and highs. Regular (monthly or quarterly) investments, as opposed to lump sum investments,
give you the benefit of rupee cost averaging.

1.4 Limitations of the study:

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 Costs to manage the overall mutual fund investment.

 The salary of the market analysts and fund manager comes from the investors.

 The overall fund management charge is one of the first parameters to consider when
choosing a mutual fund. Higher management fees do not guarantee better fund
performance.

 Many mutual funds have long-term lock-in periods, ranging from five to eight years.
Exiting such funds before maturity can be an expensive affair.

 Diversification averages your risks of loss; it can also dilute your profits.

 You should not invest in more than seven to nine mutual funds at a time.

 Investors may not have the time, knowledge or patience to research and analyze different
mutual funds.

REGULATORY FRAMEWORK

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Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds
mentioned above. All the mutual funds must get registered with SEBI. The only exception is the
UTI, since it is a corporation formed under a separate Act of Parliament.

Broad Guidelines issued by SEBI for Mutual Funds:

SEBI is the regulatory authority of Mutual Funds. SEBI has the following broad guidelines
pertaining to mutual funds:

 Mutual Funds should be formed as a Trust under Indian Trust Act & should be operated
by Asset Management Companies (AMCs).

 Mutual funds need to set up a Board of Trustees and Trustee Companies. They should
also have their Board of Directors.

 The Net worth of the AMCs should be at least Rs. 5 Crore.

 AMCs and Trustees of a Mutual Fund should be two separate and distinct legal entities.

 The AMCs or any of its companies cannot act as managers for any other fund.

 AMCs have to get the approval of SEBI for its Articles and Memorandum of Association.

 All Mutual Funds schemes should be registered with SEBI.

 Mutual Fund should distribute minimum of 90% of their profits among the investor.

There are other guidelines also that govern investment strategy, disclosure norms and advertising
code for mutual funds.

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Chapter II
Profile of organization

2.1 HISTORY OF HDFC BANK:


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The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank Limited', with
its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. The Housing Development Finance Corporation (HDFC)
was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994.

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
1416 branches spread over 550 cities across India. All branches are linked on an online real–time
basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank
also has a network of about over 3382 networked ATMs across these cities.

The promoter of the company HDFC was incepted in 1977 is India's premier housing finance
company and enjoys an impeccable track record in India as well as in international markets.
HDFC has developed significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange
of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts
(GDRs) are listed on Luxembourg Stock Exchange.

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory approval
process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC
Bank for every 29 shares of CBoP.

The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net
advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be
over Rs. 1, 63,000 crore. The amalgamation added significant value to HDFC Bank in terms of
increased branch network, geographic reach, and customer base, and a bigger pool of skilled
manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in
the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the

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shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received
1 share of HDFC Bank for every 5.75 shares of Times Bank

OVERVIEW OF HDFC BANK


HDFC Bank is one of India’s leading private banks and was among the first to receive approval
from the Reserve Bank of India (RBI) to set up a private sector bank in 1994.

Today, HDFC Bank has a banking network of 5,345 branches and 14,533  ATMs spread across
2,787 cities and towns.

HDFC Bank was incorporated in August 1994 with its registered office in Mumbai, India. The
bank commenced operations as a Scheduled Commercial Bank in January 1995. As of December
31, 2019, the Bank had a nationwide distribution network 5,345 branches and 14,533 ATM's in
2,787 cities/towns. 

The Housing Development Finance Corporation Limited or HDFC was among the first financial
institutions in India to receive an “in principle” approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector. This was done as part of RBI’s policy for liberalisation of
the Indian banking industry in 1994.

Promoter

HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

Business Focus

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As on September 30, 2016 the authorised share capital of the Bank is Rs. 650 crores. The paid-up
share capital of the Bank is Rs. 509,12,67,434 (2545633717 equity shares of Rs. 2 each). The
HDFC Group holds 21.34 % of the bank’s equity and about 18.58 % of the equity is held by the
ADS / GDR Depositories (in respect of the bank’s American Depository Shares (ADS) and
Global Depository Receipts (GDR) Issues). Also, 32.04 % of the equity is held by Foreign
Institutional Investors (FIIs) and the bank has 4,74,443 shareholders.
 
HDFC Bank shares are listed on the BSE Limited and The National Stock Exchange of India
Limited (NSE). The bank’s American Depository Shares (ADS) are listed on the New York
Stock Exchange (NYSE) under the symbol ‘HDB’ and Global Depository Receipts (GDRs) are
listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

Capital Structure

HDFC Bank is headquartered in Mumbai, India. As of December 31, 2016, the bank’s
distribution network was at 4,555 branches across 2,597 cities. All branches are linked online in
real-time. Customers across India are also serviced through multiple delivery channels such as
phone banking, NetBanking, mobile banking and SMS-based banking.
 
Our expansion plans take into account the need to have a presence in all major industrial and
commercial centers where our corporate customers are located. We also seek to build a strong
retail customer base for both deposits and loan products.
 
Being a clearing and settlement bank to various leading stock exchanges, we have branches in
centres where the NSE and BSE have a strong and active member base. The bank also has a
network of 12,087 ATMs across India. Our ATM network can be accessed by all domestic and
international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express
Credit / Charge cardholders.

Distribution Network

HDFC Bank is headquartered in Mumbai. As of September 30, 2019, the Bank's distribution
network was at 5,314 branches across 2,768 cities. All branches are linked online on a real-time
basis. Customers across India are also serviced through multiple delivery channels such as Phone
Banking, Net Banking, Mobile Banking, and SMS based banking. The Bank's expansion plans
take into account the need to have a presence in all major industrial and commercial centers,
where its corporate customers are located, as well as the need to build a strong retail customer
base for both deposits and loan products. Being a clearing / settlement bank to various leading
stock exchanges, the Bank has branches in centres where the NSE / BSE have a strong and active

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member base. The Bank also has a network of 13,541 ATMs across India. HDFC Bank's ATM
network can be accessed by all domestic and international Visa / MasterCard, Visa Electron /
Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.

Technology

HDFC Bank operates in a highly automated environment powered by information technology


and communication systems. All branches have online connectivity which enables speedy funds
transfer for customers. Multi-branch access is also provided to retail customers through the
branch network and Automated Teller Machines (ATMs).
 
We have made substantial efforts and investments in acquiring the best technology available
internationally to build the infrastructure for a world class bank.
 
For our core banking software needs, the corporate banking business is supported by Flexcube,
and the retail banking business by Finware, both from i-Flex Solutions Ltd. The systems are
open, scaleable and web-enabled.
HDFC Bank has prioritised its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core businesses. In each of its
businesses, the bank has succeeded in leveraging its market position, expertise and technology to
create a competitive advantage and build market share.

2.2 Company Profile:


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About Our Business:
HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank has
three key business segments:

1. Wholesale Banking

The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and agri-based
businesses. For these customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured solutions,
which combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian corporates including
multinationals, companies from the domestic business houses and prime public sector

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companies. It is recognised as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange members and banks.

2. Treasury

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government securities.
The Treasury business is responsible for managing the returns and market risk on this
investment portfolio.

3. Retail Banking

The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to customers
through the growing branch network, as well as through alternative delivery channels like
ATMs, Phone Banking, Net Banking and Mobile Banking. 

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the

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Investment Advisory Services programs have been designed keeping in mind needs of customers
who seek distinct financial solutions, information and advice on various investment avenues. The
Bank also has a wide array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider
of Depository Participant (DP) services for retail customers, providing customers the facility to
hold their investments in electronic form. 

HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank
launched its credit card business in late 2001. By March 2015, the bank had a total card base
(debit and credit cards) of over 25 million. The Bank is also one of the leading players in the
"merchant acquiring" business with over 235,000 Point-of-sale (POS) terminals for debit / credit
cards acceptance at merchant establishments. The Bank is well positioned as a leader in various
net based B2C opportunities including a wide range of internet banking services for Fixed
Deposits, Loans, Bill Payments, etc.

2.2.1 Vision, Mission and Values of HDFC:

HDFC Bank’s mission is to be a world class Indian bank. We have a two-fold objective: first, to
be the preferred provider of banking services for target retail and wholesale customer segments.
The second objective is to achieve healthy growth in profitability, consistent with the bank’s risk
appetite.

The bank is committed to maintaining the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank’s business philosophy is
based on five core values: Operational Excellence, Customer Focus, Product Leadership, People
and Sustainability.

2.3 Introduction to HDFC Mutual Fund:

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Incorporated on the 10th of December, 1999, HDFC Asset Management Company Ltd. is
among the most popular fund houses in India. The company offers an extensive range of
mutual funds and is home to some of the most trustworthy fund managers who ensure
that your hard-earned money is invested in the right schemes. Whether you seek growth
funds, income funds, or even retirement funds, HDFC AMC Ltd. has it all. HDFC Mutual
Fund launched its first scheme in the month of July 2000 and ever since it has been
ambitious about offering a stable performance of funds across all the variants of schemes
offered by it. The main vision of the HDFC Mutual Fund is to be a player of dominance
in the mutual fund market of India. It offers high levels of professional and ethical
conduct. It is committed towards the enhancement of the investors’ interests.

The HDFC Mutual Fund is managed by HDFC Asset Management Company (HDFC
AMC) Limited. HDFC Trustee Company Limited is the trustee to the mutual fund. The
HDFC Mutual Fund is sponsored by the Housing Development Finance Corporation
Limited (HDFC Ltd.) and the Standard Life Investments Limited.

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC Ltd.)


Principal shareholders include Housing Development Finance Corporation Limited
(HDFC) and Standard Life Investments Limited (“SLI”) who own 52.8% and 26.9%
stake respectively. HDFC was incorporated in 1977 as a specialised mortgage finance
company and is today a financial conglomerate having a dominant presence in housing
finance, banking, life and non-life insurance, asset management, real estate funds and
education finance.

VISION OF HDFC Mutual Fund

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The main vision of the HDFC Mutual Fund are as follows

 To be a player of dominance in the mutual fund market of India.


 To offers high levels of professional and ethical conduct.
 Committed towards the enhancement of the investors’ interests.

Services Offered by HDFC Mutual Fund

 Equity/Growth Fund
 Debt/Income Fund
 Exchange Traded Funds
 Children’s Gift Fund
 Fund of Fund Schemes
 Fixed Maturity Plan
 Liquid Funds
 Quarterly interval Fund

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1. Equity Funds Offered by HDFC
The following are the equity/growth funds offered by HDFC Asset Management
Company Ltd.:

1. HDFC Housing Opportunities Fund – Series 1:

Fund Type Close-ended thematic equity scheme

Entry Load N/A

Exit Load N/A

Benchmark India Housing & Allied Business Index

Fund Manager Srinivas Rao Ravuri and Rakesh Vyas

Risk Factor High

Investment Objective of the HDFC Housing Opportunities Fund – Series 1

The investment objective of the HDFC Housing Opportunities Fund – Series 1 is to


offer capital appreciation over the long term by making investments primarily in equity
and equity-related instruments of companies that are involved in and/or forecast to
benefit from growth in the housing sector and business activities associated with it.

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Who is the HDFC Housing Opportunities Fund – Series 1 for?

The HDFC Housing Opportunities Fund – Series 1 offers both the regular as well as
the direct option. The regular option is ideal for those who want to route their
investment via any distributor, while the direct option is perfect for those who want to
make investments directly rather than routing them via any distributor.

2. HDFC Equity Fund

Fund Type Open-ended growth scheme

Entry Load N/A

a. In case units are switched-out or redeemed within a year from the


date on which they were allotted, an exit load of 1% will be
Exit Load applicable.
b. In case units are switched-out or redeemed after a year from the date
on which they were allotted, there will be no exit load.

Benchmark Nifty 500

Fund
Rakesh Vyas and Prashant Jain
Manager

Risk Factor Moderately high

Investment Objective of the HDFC Equity Fund


The investment objective of the HDFC Equity Fund is to generate capital appreciation
via investment in equities and equity-related instruments.

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Who is the HDFC Equity Fund for?
The HDFC Equity Fund – Direct Plan is ideal for investors who subscribe for or
purchase units in a scheme directly with the fund rather than those whose investments
are routed via a distributor.

3. HDFC Top 100 Fund

Fund Type Open-ended growth scheme

Entry Load N/A

a. In case units are switched-out or redeemed within a year from the date on
which they were allotted, an exit load of 1% will be applicable.
Exit Load
b. In case units are switched-out or redeemed after a year from the date on which
they were allotted, there will be no exit load.

Benchmark S&P BSE 200

Fund
Rakesh Vyas and Prashant Jain
Manager

Risk Factor Moderately high

Investment Objective of HDFC Top 100 Fund


The investment objective of the HDFC Top 100 Fund is to generate capital
appreciation in the long term by making investments in a portfolio comprising of
equity and equity-related instruments of companies in the BSE 200 index.
Who is the HDFC Top 100 Fund for?
The HDFC Top 100 Fund is ideal for investors who look for long-term capital
appreciation via investments in equity and equity-related instruments of companies in
the S&P BSE 200 Index.

4. HDFC Mid-Cap Opportunities Fund


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Fund Type Open-ended equity scheme

Entry Load N/A

a. In case units are switched-out or redeemed within a year from the date on
which they were allotted, an exit load of 1% will be applicable.
Exit Load
b. In case units are switched-out or redeemed after a year from the date on
which they were allotted, there will be no exit load.

Benchmark NIFTY Midcap 100

Fund
Rakesh Vyas and Chirag Setalvad
Manager

Risk Factor Moderately high

Investment Objective of HDFC Mid-Cap Opportunities Fund


The investment objective of the HDFC Mid-Cap Opportunities Fund is to generate
capital growth over the long term via investment in a portfolio that mainly comprises
of equity and equity-related instruments of small- and mid-cap companies.
Who is the HDFC Mid-Cap Opportunities Fund for?
The HDFC Mid-Cap Opportunities Fund is ideal for investors who want long-term
capital appreciation through investment mainly in equity and equity-related
instruments of small- and mid-cap companies.

5. HDFC Prudence Fund

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Fund Type Open-ended balanced scheme

Entry Load N/A

a. The redemption of up to 15% of the units allotted will be without any


exit load.
b. In case units are switched-out or redeemed within a year from the
Exit Load date on which they were allotted, an exit load of 1% will be
applicable.
c. In case units are switched-out or redeemed after a year from the date
on which they were allotted, there will be no exit load.

Benchmark CRISIL Balanced Fund Index

Fund
Rakesh Vyas and Prashant Jain
Manager

Risk Factor Moderately high

Investment Objective of HDFC Prudence Fund


The investment objective of the HDFC Prudence Fund is to offer long-term capital
appreciation along with periodic returns via investment in a judicious combination of
debt and equity instruments, with the objective to minimise/prevent the erosion of
capital.
Who is the HDFC Prudence Fund for?
The HDFC Prudence Fund is ideal for investors who want periodic income along with
capital growth whilst ensuring that their capital will remain safe from erosion over the
long term.

2. Debt Funds Offered by HDFC Asset Management Company


Ltd.
The following are the debt/income funds offered by HDFC Asset Management Company
Ltd.:

26
1. HDFC Gilt Fund

Fund Type Open-ended income scheme

Entry Load N/A

Exit Load N/A

Benchmark I-Sec Li-Bex

Fund Manager Anil Bamboli

Risk Factor Moderate

Investment Objective of HDFC Gilt Fund


The investment objective of the HDFC Gilt Fund is to achieve credit risk-free returns
by investing in sovereign securities of the State Government and/or Central
Government, whose maturities range between medium and long term.
Who is the HDFC Gilt Fund for?
The HDFC Gilt Fund is ideal for investors who want credit risk-free returns between
the medium and long term by investment in a portfolio consisting of securities issued
by State/Central Government.

2. HDFC Corporate Bond

Fund Type Open-ended debt scheme

27
Entry Load N/A

Exit Load N/A

Benchmark CRISIL Composite Bond Fund Index

Fund Manager Anil Bamboli, Anupan Joshi, and Shobhit Mehrotra

Risk Factor Moderately low

Investment Objective of HDFC Corporate Bond


The investment objective of the HDFC Corporate Bond is to achieve capital
appreciation and generate income via investments mainly in corporate bonds that are
rated AA+ and above.
Who is the HDFC Corporate Bond for?
The HDFC Corporate Bond is ideal for investors who want regular income between the
medium and long term by investments in money market and debt instruments along
with government securities whose maturity periods are below 60 months.

3. HDFC Short Term Debt Fund

Fund Type Open-ended income scheme

Entry Load N/A

28
Exit Load N/A

Benchmark CRISIL Short-Term Bond Fund Index

Fund Manager Anil Bamboli and Rakesh Vyas

Risk Factor Moderately low

Investment Objective of HDFC Short Term Debt Fund


The investment objective of the HDFC Short Term Debt Fund is to generate income on
a regular basis via investments in money market/debt instruments along with
government securities whose maturity periods are below 36 months.

Who is the HDFC Short Term Debt Fund for?


The HDFC Short Term Debt Fund is ideal for investors who want regular income in
the short to medium term by making investments in government securities, money
market, and debt instruments whose maturity periods are less than 36 months.

4. HDFC Credit Risk Debt Fund

Fund Type Open-ended debt scheme

Entry Load N/A

29
 No exit load will be applicable on the redemption of 15% of the
units.
 In case units are switched-out or redeemed within a year from the
date on which they were allotted, an exit load of 1% will be applicable.
Exit Load  In case units are switched-out or redeemed after a year but within
18 months from the date on which they were allotted, an exit load of 0.50%
will be applicable.
 In case units are switched-out or redeemed after 18 months from
the date on which they were allotted, there will be no exit load.

Benchmark CRISIL Short-Term Bond Fund Index

Fund
Anil Bamboli and Shobhit Mehrotra
Manager

Risk Factor Moderate

Investment Objective of HDFC Credit Risk Debt Fund


The investment objective of the HDFC Credit Risk Debt Fund is to generate income
along with capital appreciation via investment mainly in corporate bonds that are rated
AA and below.

Who is the HDFC Credit Risk Debt Fund for?


The HDFC Credit Risk Debt Fund is ideal for investors who want regular income
between the medium and long term along with capital appreciation via investment
mainly in corporate debt.

5. HDFC Hybrid Debt Fund

Fund Type Open-ended income scheme

30
Entry Load N/A

 No exit load will be applicable on the redemption of 15% of the


units.
 In case units are switched-out or redeemed within a year from the
Exit Load
date on which they were allotted, an exit load of 1% will be applicable.
 In case units are switched-out or redeemed after a year from the
date on which they were allotted, there will be no exit load.

Benchmark CRISIL MIP Blended Index

Fund
Rakesh Vyas, Prashant Jain, and Shobhit Mehrotra
Manager

Risk Factor Moderately high

Investment Objective of HDFC Hybrid Debt Fund


The investment objective of the HDFC Hybrid Debt Fund is to generate returns on a
regular basis via investment mainly in money market and debt instruments. The
scheme also aims at achieving capital appreciation in the long term via investment of a
part of the assets in equity and equity-related instruments.

Who is the HDFC Hybrid Debt Fund for?


The HDFC Hybrid Debt Fund is ideal for investors who want regular income over the
medium to long term via investment in money market and debt instrument in addition
to investment in equity and equity-related instruments

3. Liquid Funds Offered by HDFC Asset Management Company


Ltd.
The following are the liquid funds offered by HDFC Asset Management Company Ltd.:

1. HDFC Money Market Fund


31
Fund Type Open-ended high liquidity income scheme

Entry Load N/A

Exit Load N/A

Benchmark CRISIL Liquid Fund Index

Fund Manager Rakesh Vyas and Anil Bamboli

Risk Factor Low

Investment Objective of HDFC Money Market Fund


The investment objective of the HDFC Money Market Fund is to generate optimal
returns while ensuring that high liquidity and safety are maintained.
Who is the HDFC Money Market Fund for?
The HDFC Money Market Fund is ideal for investors who want optimal returns in the
short term via investment in money market and debt instruments that come with
maturity periods of less than 91 days.

2. HDFC Cash Management Fund – Call Plan

Fund Type Open-ended high liquidity income scheme

Entry Load N/A

32
Exit Load N/A

Benchmark CRISIL Liquid Fund Index

Fund Manager Rakesh Vyas and Anil Bamboli

Risk Factor Low

Investment Objective of HDFC Cash Management Fund – Call Plan


The investment objective of the HDFC Cash Management Fund – Call Plan is to
generate optimal returns while ensuring that high liquidity and safety are maintained.

Who is the HDFC Cash Management Fund – Call Plan for?


The HDFC Cash Management Fund – Call Plan is ideal for investors who want
optimal returns over the short term by investing in CBLO (Collateralised Borrowing
and Lending Obligations), fixed income securities with overnight liquidity/maturity,
and overnight reverse repos in Government securities.

3. HDFC Liquid Fund Premium Plan

Fund Type Open-ended liquidity income scheme

Entry Load N/A

33
Exit Load N/A

Benchmark CRISIL Liquid Fund Index

Fund Manager Rakesh Vyas and Shobhit Mehrotra

Risk Factor Low

Investment Objective of HDFC Liquid Fund Premium Plan


The investment objective of the HDFC Liquid Fund Premium Plan is to increase
income while ensuring that a high level of liquidity is maintained, by investing in a
judicious portfolio that consists of debt and money market instruments.

Who is the HDFC Liquid Fund Premium Plan for?


The HDFC Liquid Fund Premium Plan is ideal for investors who want short-term
income via investment in money market and debt instruments.

4. HDFC Liquid Fund

Fund Type Open-ended high liquidity income scheme

Entry Load N/A

34
Exit Load N/A

Benchmark CRISIL Liquid Fund Index

Fund Manager Rakesh Vyas and Anupam Joshi

Risk Factor Low

Investment Objective of HDFC Liquid Fund


The investment objective of the HDFC Liquid Fund is to generate income while
ensuring that a high level a liquidity is maintained via investment in a judicious
portfolio that consists of debt and money market instruments.

Who is the HDFC Liquid Fund for?


The HDFC Liquid Fund is ideal for investors who want short-term income via
investment in money market and debt instruments.

4. Children’s Gift Fund Offered by HDFC Asset Management


Company Ltd.
The following is the children’s gift fund offered by HDFC Asset Management Company
Ltd.:

HDFC Children’s Gift Fund

Fund Type Open-ended balanced scheme

Entry Load N/A

35
 Nil if the units are subject to a lock-in period or if they are switched out or
redeemed after three years from the date on which they were allotted.
 1% in case the units are switched-out or redeemed after two years but
before three years from the date on which they were allotted.
Exit Load
 2% in case the units are switched-out or redeemed after one year but before
two years from the date on which they were allotted.
 3% in case the units are switched-out or redeemed within a year from the
date on which they were allotted.

Benchmark CRISIL Balanced Fund – Aggressive Index

Fund
Rakesh Vyas and Chirag Setalvad
Manager

Risk Factor Moderately high

Investment Objective of HDFC Children’s Gift Fund


The investment objective of the HDFC Children’s Gift Fund is to generate capital
appreciation over the long term via investment mainly in equities and equity-related
instruments. The assets under this fund will also be invested in money market/debt
instruments and their objective will be to generate long term returns while ensuring that
risk is under control.

Who is the HDFC Children’s Gift Fund for?


The HDFC Children’s Gift Fund is ideal for investors who want long-term capital
appreciation via investment in money market and debt instruments as well as equity and
equity-related instruments.

5. Exchange Traded Funds Offered by HDFC Asset Management


Company Ltd.
The following are the exchange traded funds offered by HDFC Asset Management
Company Ltd.:

36
1. HDFC Gold Exchange Traded Fund

Fund Type Open-ended exchange traded fund

Entry Load N/A

Exit Load N/A

Benchmark Domestic Price of Physical Gold

Fund Manager Krishan Kumar Daga

Risk Factor Moderately high

Investment Objective of HDFC Gold Exchange Traded Fund


The investment objective of the HDFC Gold Exchange Traded Fund is to generate
returns equivalent to the performance of gold via investment mainly in gold bullion of
0.995 fineness.
Who is the HDFC Gold Exchange Traded Fund for?
The HDFC Gold Exchange Traded Fund is ideal for investors who want returns that
correspond with the performance of gold.

2. HDFC Nifty 50 ETF

Fund Type Open-ended exchange traded fund

37
Entry Load N/A

Exit Load N/A

Benchmark Nifty 50 Index

Fund Manager Krishan Kumar Daga

Risk Factor Moderately high

Investment Objective of HDFC Nifty 50 ETF


The investment objective of the HDFC Nifty 50 ETF is to generate returns that
correspond with the overall returns of the securities under the Nifty 50 Index.

Who is the HDFC Nifty 50 ETF for?


The Nifty 50 ETF is ideal for investors who want returns that correspond with the
performance of the Nifty 50 Index via investment in equity securities that are covered
under the index.

3. HDFC Sensex ETF

Fund Type Open-ended exchange traded fund

38
Entry Load N/A

Exit Load N/A

Benchmark S&P BSE Sensex

Fund Manager Krishan Kumar Daga

Risk Factor Moderately high

Investment Objective of HDFC Sensex ETF


The investment objective of the HDFC Sensex ETF is to generate returns that
correspond with the overall returns of the securities under the S&P BSE Sensex Index.
Who is the HDFC Sensex ETF for?
The HDFC Sensex ETF is ideal for investors who want returns that correspond with
the performance of the S&P BSE Sensex Index via investment in equity securities that
fall under the index

2.3.1 INVESTMENT PLAN

1. SYSTEMATIC INVESTMENT PLAN (SIP):-

HDFC MF SIP is similar to a recurring deposit. Every month on a specified date an


amount you choose is invested in a mutual fund scheme of your choice. The dates
currently available for sips are the 1st, 5th, 10th, 15th, 20th and the 25th of a month.
You’ll be amazed to learn about the many benefits of investing through HDFC MF SIP.

Benefits:-

39
1. Become A Disciplined Investor-:

Being disciplined - it’s the key to investing success. With the HDFC MF systematic
investment plan you commit an amount of your choice (minimum of RS. 500 and in
multiples of RS. 100 thereof) to be invested every month is one of our scheme. Think of
each sip payment as laying a brick. One by one, you’ll see them transform into a
building. You’ll see your investments accrue month after month. It’s as simple as giving
at least 6 postdated monthly cheque to us for a fixed amount in a scheme of your choice.
It’s the perfect solution for irregular investors

2. Reach Your Financial Goal-:

Imagine you want to buy a car a year from now, but you don’t know where the down-
payment will come from. HDFC MF SIP is a perfect tool for people who have a specific,
future financial requirement. By investing an amount of your choice. Every month, you
can plan for and meet financial goals, like funds for a child’s education, a marriage in the
family or a comfortable postretirement life.

3. Take Advantage Of Rupee Cost Averaging-:

Most investors want to buy stocks when the prices are low and sell them when prices are
high. But timing the market is time consuming and risky. A more successful investment
strategy is to adopt the method called rupee cost averaging. To illustrate this we’ll
compare investing the identical amount thought a sip and in one lump sum.

4. Grow Your Investment With Compounded Benefits-:

40
It is far better to invest a small amount of money regularly, rather than save up to make
one large investment. This is because while you are saving the lump sum, your savings
may not earn much interest. With HDFC MF SIP, each amount you invest grows through
compounding benefits as well. That is, the interest earned on your investment also earns
interest.

2. SYTEMATIC TRANSFER PLAN (STP)-:

STP refers to systematic transfer plan where in an investor invests a lump sum amount in
one scheme and regularly transfers (i.e. switches) a pre-defined amount into another
scheme. Every month on a specified date an amount you choose is transferred from one
mutual fund scheme to another of your choice. Currently, fixed systematic transfer plan
(FSTP) - monthly interval and capital appreciation systematic transfer plan (CASTP) -
monthly interval facility is available to the unit holders on 1st, 5th, 10th, 15th, 20th and
25th of a month and FSTP - quarterly interval and CASTP - quarterly interval facility is
available to the unit holders on 1st, 5th, 10th, 15th, 20th and 25th of the first month of
each quarter.

2.3.2 SWOT ANALYSIS –


A type of fundamental analysis of the health of a company by examining its
strengths(s),weakness (w), business opportunity (o), and any threat (t) or dangers it might be
exposed to

STRENGTHS:-

41
 Brand Strategy: as opposed to some of its competitors (e.g. HSBC), HDFC operates a
multi-brand strategy. The company operates under numerous well-known brand names,
which allows the company to appeal to many different segments of the market.

 Distribution Channel Strategy: HDFC is continuously improving the distribution of its


products. Its online and internet-based access offers a combination of excellent growth
prospects and its retail direct business also saw growth of 27% in 2002 and 15% in 2003.
100

 Various Sources Of Income: HDFC has many sources of income throughout the group, and
this diversity within the group makes the company more flexible and resistant to economic
and environmental changes.

• Large pool of installed capacities.


• Experienced managers for large number of generics.
• Large pool of skilled and knowledgeable manpower.
• An increasing liberalization of government policies.

WEAKNESS:-

 Emerging Markets: Since there is more investment demand in the United states, Japan and
the rest of Asia, HDFC should concentrate on these markets, especially in view of low
global interest rates.

 Mutual Funds Are Like Many Other Investments Without A Guaranteed Return:
There is always the possibility that the value of your mutual fund will depreciate. Unlike
fixed-income products, such as bonds and treasury bills, mutual funds experience price
fluctuations along with the stocks that make up the fund. When deciding on a particular fund
to buy, you need to research the risks involved – just because a professional manager is
looking after the fund, that doesn’t mean the performance will be stellar.

 Fees: In mutual funds, the fees are classified into two categories: shareholder fees and
annual operating fees. The shareholder fees, in the forms of loads and redemption fees are
paid directly by shareholders purchasing or selling the funds. The annual fund operating
fees are charged as an annual percentage – usually ranging 214 from 1-3%. These fees are
assessed to mutual fund investors regardless of the performance of the fund. As you can
imagine, in years when the fund doesn’t make money, these fees only magnify losses. III.

42
OPPORTUNITIES:-

 Potential Markets: The Indian rural market has great potential. All the major market
leaders consider the segments and real markets for their products. A senior official in a one
of the leading company says foray into rural India already started and there has been
realization that the rural market is both price and quantity conscious.
 Entry Of MNCS: Due to multinationals are entering into market job opportunities are
increasing day by day. Also India mutual fund majors are tie up with other financial
institutions.

THREATS:-
 Hedge Funds: Sometimes referred to as hot money, are also causing a threat for mutual
funds have gained worldwide notoriety for bringing the markets down. Be it a crash in
the currency, a stock or a bond market, a usually a hedge fund prominently figures
somewhere in the picture.

2.3.3 How to invest in HDFC Mutual Funds?

It is easier than ever to shortlist any HDFC mutual fund product and invest. ClearTax has
always been a reliable platform to find hand-picked funds that suit your investment
purpose and risk profile. Now, you can also select any product from a particular fund
house (say, an HDFC mutual fund) from ClearTax Save portal. One of the advantages of
going through us is, you need to do your KYC formalities only once. The entire
investment process will take no more than 7 minutes.

43
Clear Tax gives you a quick and seamless process in 3 steps.

Step 1: Click on the fund(s) and enter how much you want to invest
monthly/quarterly/annually

Step 2: Fill in your personal info in respective columns

Step 3: Pay online by card or Net Banking – the entire process takes less than 7 minutes

How to Invest in HDFC Mutual Funds Online?

Investing in HDFC Mutual Funds online is as easy as it gets. The HDFCMF Online
facility introduced by HDFC enables customers to transact online at any time. By using
this facility, you can purchase switch, redeem, view your account details, register for
SIPs/STPs, check the valuation of your portfolio and download account statements with
relative ease. To transact online, all you need is an existing folio, an email address that is
registered in the folio, and your HDFC Personal Identification Number.

Documents Required for HDFC Mutual Funds

The following are the documents you will need to invest in HDFC Mutual Funds:
 Application form (one for opening a mutual fund account, one if you want to
select an SIP, and one if you want to transfer funds electronically from your bank
account)

 KYC documents (KYC individual form along with a passport-sized photograph)

44
 Identity proof (any one of Passport, Driving License, PAN, Aadhaar Card, or
Voter’s ID)

 Address proof (any one of Passport, Aadhaar Card, Driving License, Voter’s ID,
Ration Card, utility bills such as gas bill, electricity bill, or telephone bill, or flat
maintenance bill, passbook, insurance copy, bank account statement, or registered
sale/lease agreement of residence)

 Third party declaration in case of investment on behalf of a minor (Third party


declaration form)

45
CHAPTER III
REVIEW OF LITERATURE

3.1 A COMPARATIVE ANALYSIS OF MUTUAL FUND


SCHEMES IN INDIA:
DR. SARITA BAHL, MEENAKSHI RANI.
ABSTRACT:
Many of the financial instruments mutual fund is one of the most attractive financial
investment instrument that plays a vital role in the economy of a country. Mutual fund schemes
provides new opportunities for investors. Mutual fund Industry was introduced in India 1963

46
with the formation of Unit Trust of India. During the last few years many extraordinary and rapid
changes have been seen in the Mutual fund industry. Therefore, due to the changed environment
it becomes important to investigate the mutual fund performance. The need for evaluating the
performance of mutual fund schemes in India to see whether the mutual fund schemes are
outperforming or underperforming than the benchmark and to see the competency of schemes to
make out a strong case for investment. The present paper investigates the performance of open-
ended, growth-oriented equity schemes. Open-ended mutual fund schemes are those which don’t
have a fixed maturity, not listed in the stock exchange and these schemes offer new unit for sale
and ready to buy any time.

Conclusion:
The present paper investigates the performance of 29 open-ended, growth-oriented
equity schemes for the period from April 2005 to March 2011 (six years) of transition economy.
Monthly NAV of different schemes have been used to calculate the returns from the fund
schemes. BSE-sensex has been used for market portfolio. The historical performance of the
selected schemes were evaluated on the basis of Sharpe, Trey nor, and Jensen’s measure whose
results will be useful for investors for taking better investment decisions. The study revealed that
14 out of 29 (48.28 percent) sample mutual fund schemes had outperformed the benchmark
return. The results also showed that some of the schemes had underperformed; these schemes
were facing the diversification problem. In the study, the Sharpe ratio was positive for all
schemes which showed that funds were providing returns greater than risk free rate. Results of
Jensen measure revealed that 19 out of 29 (65.52 percent) schemes were showed positive alpha
which indicated superior performance of the schemes.

3.2 Gayathri, S., Karthika, S. & Kumar, Gajendran L. (2010)


Abstract:
Reviewed on Mutual Funds in India are financial instruments. A mutual fund
is not an alternative investment option to stocks and bonds; rather it pools the

47
money of several investors and invests this in stocks, bonds, money m a r k e t
instruments and other types of securities. 
T h e o w n e r o f   a   m u t u a l f u n d   u n i t   g e t s   a  proportional share of the fund’s
gains, losses, income and expenses. Mutual Fund is vehicle for investment in stocks
and Bonds. Each mutual fund has  a specific stated objective. Some popular objectives
of a mutual fund are: Fund Objective - What the fund will invest in; Equity (Growth) - Only in
stocks; Debt (Income); Only in fixed-income securities; Money Market (including
Gilt) - In short-term money market instruments (including government securities);
Balanced - Partly in stocks and partly in fixed-income securities, in order to maintain a
'balance' in returns and risk. The share value of the Mutual Funds in India is known as net asset
value per share (NAV).

Conclusion:

The NAV is calculated on the total amount of the Mutual Funds in India, by


dividing it with the number of shares issued and outstanding shares on daily basis. The
company that puts together mutual fund is called an AMC. An AMC may have several mutual
fund schemes with similar or varied investment objectives. The AMC hires a professional money
manager, who buys and sells securities in line with the fund's stated objective. The
Securities and Exchange Board of India (SEB I) mutual fund regulations
require that the fund’s objectives are clearly spelt out in the prospectus. In addition,
every mutual fund has a board of directors that is supposed to represent the shareholders'
interests, rather than the AMC’s.

48
CHAPTER IV
RESEARCH METHODOLOGY

4.1 Research Methodology


Research Methodology- is a way to systematically solve the research problem. The
Research Methodology includes the various methods and techniques for conducting a research
Marketing Research is the systemic design, collection, analysis and reporting of data and finding
relevant solution to a specific marketing situation or problem."

49
DESCRIPTIVE RESEARCH:

Descriptive research includes survey and fact finding enquiries of different kinds. The
major purpose of descriptive research is description of state of affairs as it exists at present. The
main characteristic of this method is that there searcher has no control over the variable can
only report what has happened or what is happening.

4.2 DATA COLLECTION;

SECONDARY DATA:

This type of data already collected by someone else and passes through statistical
process.

Instrument: Internet, Articles, Journal, websites.

Research Plan:

Data source: secondary


Research instrument: HDFC Journals Articles

50
CHAPTER V
FINDINGS

5.1 Findings of study:

 Maximum of the investors is invested by middle age group.

51
 Mutual fund is more preferred by the job holders and business people

 Maximum investors holder fall under average annual income like 1-3 lakh

 Mostly use by the middle group families

 Mostly prefer for high interest

 Investment have good market value

CHAPTER VI
CONCLUSION

52
6.1CONCLUSION:

The HDFC mutual fund In India has gone through sea- changes in the last decade or so and has
witnessed very impressive growth rates. However, even now, it is poised for many far reaching
changes that can unleash a further period of very high growth in the near future as well.

At HDFC bank we understand the value of your time and the opportunities it holds for you. Your
personal finances may not get the attention they deserve while you attend to your business and
professional needs. We are pleased to offer to you our tailors made private banking services.
Created exclusively for valued customer for managing and enhancing your wealth.

The HDFC mutual fund industry has involved in many aspects in the last decade or so. Be it
product innovation. Distribution reach, investors education or leveraging technology. At present,
only small portions of public savings reach the capital markets through the HDFC MF route will
raise gradually. Innovations like arbitrage funds, exchange - traded funds are going to benefit

53
investors is a very tangible way. However again within the exchange traded funds category,
products like real estate exchange traded funds will take some time to be introduced in the Indian
market. The industry one of the most regulated and has so far seen a very small numbers of
issues. This fact alone should illustrate the likely future development of the HDFC mutual funds
industry.

CHAPTER VII
REFRENCES

54
7.1REFERENCE:

www.moneycontrol.com
www.nseindia.com
www.bseindia.com
www.hdfcfund.com
www.amfi.com
www.sebi.gov.in
www.bankbazar.com
www.investopedia.com
55
www.shodhganga.in

56