Beruflich Dokumente
Kultur Dokumente
16 September, 2008
Consumer Behavior on
Advantages Investors
l th
eir Disadvantages
o
Po ney
ck d
wi over Cost
Pa
Professional Management
Reduction/Diversification of No Tailor-
Risk Fund made
Returns
Liquidity Manager Portfolios
Flexibility & Convenience Managing a
Portfolio Funds
Reduction in Transaction cost
n
Ge
ti
Safety of regulated
ne
s
ve
ra
In
environment
t
Securities
es
Offer Document
• A Legal document
• Issued by AMC on behalf of Trustees
• Offer Document describes the Product/Scheme
• Very important document for prospective investor
• First time investors must read OD before deciding to invest
• For Close Ended Fund issued at the time of launching a scheme
• For Open Ended Fund revised every 2 years
KIM
• A abridged version of Offer Document
• A part of the Application Form
• To be in the format as prescribed by SEBI
Institutional Intermediaries
• Fund distribution companies
Private Sector MF prefer
• Finance Companies
established Fund distribution Cos
• Investment Advisory Companies as Fund Distributors
• Banks and Institutions AMFI Registration No. (ARN) card
• Post Offices necessary before selling
• Brokers and Sub-brokers Commission can be paid upfront
or trail commission
• The aim will be to build a portfolio, which represents a cross-section of the strong growth
companies in the prevailing market. In order to reduce the risk of volatility, the Scheme will
diversify across major industries and economic sectors.
• A part of the funds may be invested in debt and money market instruments.
• The Scheme may also invest up to 25% of net assets of the Scheme in derivatives such as Futures
& Options and such other derivative instruments as may be introduced from time to time for the
purpose of hedging and portfolio balancing and other uses as may be permitted under the
Regulations.
• The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in overseas
markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds and mutual funds
and such other instruments as may be allowed under the Regulations from time to time.
Equity Mutual Funds 9/16/2008 14
USP (Unique Selling Proposition)
JM Equity MF
The scheme seeks long-term capital growth and appreciation through investment
primarily in equities.
Investment Strategy
• The corpus of these Schemes will be invested in equity and equity related instruments and also in
high quality debt and money
• Market instruments.
• Subject to the Regulations, the corpus of the Scheme can be invested in any (but not exclusively)
of the following securities:
― Equity and Equity related securities including convertible bonds and debentures and warrants carrying the right to obtain equity
shares
― ADRs, GDRs issued by Indian companies subject to condition issued by RBI and SEBI.
― Securities created and issued by the Central and State Governments and/or repos/reverse repos in such Government, Securities
as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).
― Securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon
bonds and treasury bills).
― Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government
guarantee.
― Corporate debt and securities (of both public and private sector undertakings) including Bonds, Debentures, Notes, Strips, etc.
The Fund Size is Rs.3,776.03 Cr. The Fund size is Rs.63.75 Cr. (07-
(08-29-08) 31-08)
HDFC Equity (G) fund is standing at JM Equity (G) fund is standing at
19th Rank as on 12 Sep, 2008 with 44th Rank as on 12 Sep, 2008 with
33.45% returns in 5 years. 25.81% returns in 5 years.
Last Dividend declared by the fund Last Dividend declared by the fund
is Rs. 5.50 (Mar-07-2008) is Rs. 2.00 (Aug-28-2006)
Fund is managed by Prashant Fund is managed by Sandip
Jain Sabharwal
The Benchmark for the Scheme is The Benchmark for the Scheme is
S&P CNX 500. Performance BSE Sensex. Performance
comparisons will be made vis-ã-vis comparisons will be made vis-ã-vis
the benchmark. the benchmark.
Current value as on 15th Sep 2008 Current value as on 15th Sep 2008
• Dividend Option: Rs. 35.32 • Dividend Option: Rs. 14.74
• Growth Option: Rs. 153.11 • Growth Option: Rs. 32.82
Source: hdfcfund.com, jmfinancialmf.com, amfiindia.com, Moneycontrol.com, valueresearchonline.com.
3.7% 1.0%
0.6%
98.4%
96.3%
96.3% of the total amount invested in the 98.4% of the total amount invested in the
fund will be invested in the equity fund will be invested in the equity
markets. markets.
The remaining 3.7% amount will be kept as 1.0% of the amount will be invested in the
the cash/call option. Money Markets.
The remaining 0.6% amount will be kept as
the cash/call option.
Source: hdfcfund.com, jmfinancialmf.com, amfiindia.com, Moneycontrol.com, valueresearchonline.com.
Sector HDFC JM
HDFC Equity Fund (as on 31 Aug 2008)
Engineering 18.70% 11.27%
ICICI Bank 8.94%
Banking/Finance 20.49 –
ONGC 5.96
Technology – 16.36
SBI 5.39
Pharmaceuticals 13.80 –
Crompton Greaves 4.73
Utilities – 10.07
Divi's Laboratories Ltd. 4.45
Manufacturing – 9.98
Media 7.76 –
JM Equity Fund (as on 31 Aug 2008)
Chemicals – 7.23
Bombay Rayon Fashions 11.35%
Food & Beverage 7.01 –
Satyam Computers 9.07
Oil & Gas 6.77 –
United Phosphorus Ltd. 6.91
Telecom – 5.62
BHEL 6.48
Other 25.47 39.47
Tata Power 5.42
Total 100% 100%
From the above table it is clear that the past returns From the above table it is clear that the past returns
of the fund has been always good except last 1-year of the fund has been always impressive when
returns when compared to the benchmark returns. compared to the benchmark returns.
2007 -3.2 20.9 9.7 21.3 51.6 2007 -17.5 28.8 17.9 17.4 44.4
2006 18.6 -13.0 16.8 9.6 35.6 2006 19.9 -10.6 13.8 13.7 43.6
2005 0.7 8.1 25.2 13.4 61.2 2005 2.6 9.1 19.9 4.8 51.1
2004 -1.3 -14.4 18.1 18.3 25.8 2004 -2.9 -13.9 14.7 16.5 17.7
Source: hdfcfund.com, jmfinancialmf.com, amfiindia.com, Moneycontrol.com, valueresearchonline.com.
(1) Compounded Annualised Returns. (2) HDFC: S&P CNX 500. JM: BSE Sensex. (3) Inception Date for HDFC is January 1, 1995 & for JM is April 1, 1995.
From Date NAV (Rs.) To Date NAV (Rs.) From Date NAV (Rs.) To Date NAV (Rs.)
3-Jan-00 8.502 11-Sep-08 36.827 3-Jan-00 12.684 11-Sep-08 15.718
Absolute Returns(1): 540.9 %. Absolute Returns(1): 321.5 %.
As per the above graph the fund’s performance As per the above graph the fund’s performance
was always as per the sensex performance that was always as per the sensex performance till
means the Fund manager has managed the 2004 but after that the fund never picked up.
fund well. Wrong selection of the sector by the Fund
Appropriate selection of the sector is been Manager was the reason for the fall in fund
always a positive point of this fund. performance specially in Q1 2007.
Source: hdfcfund.com, jmfinancialmf.com, amfiindia.com, Moneycontrol.com, valueresearchonline.com.
(1) Returns have been calculated after adjusting the NAV's for dividends, bonus & rights, if any.
According to the survey, before investing in mutual funds 50% investors were
investing in FDs, 30% in Saving accounts whereas Government Bond and
balanced Mutual Funds got 10-10% share each.
This survey reveled that almost 30% investors have invested in the HDFC
Equity Mutual Funds and 20% in JM Equity Mutual Funds.
JM Equity Fund investors have invested a lump sum amount in growth option
in 2006 whereas, HDFC Equity Fund investors are into SIP with dividend
payout option with the mind frame of earning income over the years.
This survey also tells that 40% investors have an average knowledge of
mutual fund industry whereas 30% are with below average knowledge.
In terms of Customer services and regular updates from the AMC both the
funds got same rating.
Looking at the current market situation almost 90% Investors are happy with
their current Fund Manager and they think none other manager could have
performed better than the him.
10% investors think they should withdraw their money from the current fund
(JM Equity Fund) and invest into Reliance Growth Fund which again is a Equity
Diversified Fund which mostly invests in Large-caps.
Other suggestion which came into picture was for Online transaction.
• 10% investors say that HDFC AMC’s online buying of mutual fund’s procedure is
lengthy and tedious.
• Whereas 20% investors says JM AMC does not have online transact facility at all
and they should come up with this facility.
According to the survey most Investors are satisfied with HDFC AMC services.
When both the funds are compared among each other, It has been cleared
that HDFC Equity fund has been outperformed over the years.
Even when compared with its peer Equity Funds HDFC Equity Fund stands
at 19th Rank (as on 12 Sep, 2008) with 33.45% absolute returns in 5 years
whereas JM Equity Fund stands at 44th Rank (as on 12 Sep, 2008) with
only 25.81% absolute returns in 5 years.
Both the funds are concentrating on Large and Mid cap stocks but its only
the sector which affects the returns. Its where the Fund Manager’s role
comes into picture. HDFC Equity Fund manager Mr. Prashant Jain scores
full marks in sector switching as and when market situation permits.
From the above table its clear that HDFC Equity Fund has always given better
dividend to the investors.
Its always advisable to invest in Equity Fund rather than directly investing
into stock market for safe & good returns with the long term perspective.
Also keeping in mind the current market situation one should be advised to
go for SIP (systematic Investment Plan) for safe investment.
Equity Mutual Funds 9/16/2008 27
Thank You
Note: Mutual Fund investments are subject to market risks. Please read
the offer document carefully for details on risk factors before investment.