Gen Study-No Graph

SUMMER TRAINNING PROJECT REPORT ON
GENERAL STUDY OF HDFC MUTUAL FUND
SUBMITTED BY
VISHAL N. NASIT MBA Sem-III ACADEMIC YEAR 2006 2008
PROJECT GUIDE
(DR). MITA VORA (assistant professor)
SUBMITTED TO
SAURASHTRA UNIVERSITY, RAJKOT
COLLEGE NAME
R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)
PREFACE
In todays era of cut-throat competition, Masters of Business Administration (MBA) is sure to have an edge over their counterparts. MBA education brings its students in direct contact with the real corporate world through industrial training. The MBA program provides its students with an in depth study of various managerial activities that are performed in any organization. A detailed analysis of managerial activities conducted in various departments like production, marketing, finance, human resources, export-imports, credit dept, etc. gives the student a conceptual idea of what they are expected to manage , how to manage and how to obtain the maximum output through minimum inputs and how to minimize the wastage of resources. I have undergone my summer training at HDFC MUTUAL FUND. It is one of the leading mutual fund companies in the country. I feel great pleasure to present this report work after my training at HDFC MUTUAL FUND that produced to be golden opportunity for me by enriching my knowledge by comparing my theoretical knowledge with the managerial skill and application. Simple language has been used throughout the report. Report is illustrated with figure, charts and diagrams as and when required.
DECLARATION
I NASIT VISHAL, student of MBA Semester III of R.K. COLLEGE OF BUSINESS MANAGEMENT hereby declare that the project work presented in this report is my own work and has been carried out under the supervisor of Mr.Amit Doshi (Assistant Manager of HDFC Mutual Fund, Rajkot). My report is submitted as a part of study curriculum and as a partial fulfilment of the degree of M.B.A. (Masters of Business Administration). I am also declaring that I am submitting this report on the training undertaken at HDFC Mutual Fund regarding the General Study of Mutual Fund at Rajkot Branch and studying the peoples perception regarding the investment in mutual fund. I guarantee that this project report has not been submitted for the awards to any other university for degree, diploma or any other such prizes.
Date: Place: RAJKOT (NASIT VISHAL N.)
ACKNOWLEDGEMENT
With great zeal, I present my individual summer training Report in MBA (SEMESTER III) on HDFC MUTUAL FUND. I convey my deepest gratitude to Mr. Amit Doshi, Mr. Kilol Karia, and Mr. Sandip Kalola. and all other staff members of HDFC MUTUAL FUND (AMC) and HDFC BANK who have been very co-operative and helpful in providing vital information for my project. This Summer Training has imparted me a professional exposure to the real corporate world and its general management orientation. By working at HDFC MUTUAL FUND (AMC), studying different schemes of MUTUAL FUND, knowing the criteria of making investment, interacting with professional departmental heads and by preparing this report, it has added a practical touch to my theoretical knowledge. I avail this opportunity to convey my sincere thanks to Mr. T.D.TIWARI, the director of R.K. College of Business Management. I am thankful to DR. MITA VORA, my project guide for recommending me the necessary information for the report. His instilling support and enthusiasm, expert guidance and insight have lent my project a unique touch. I also express my sincere gratitude to Mr. Prof (Dr.) T. D. TIWARI, Director of R.K.C.B.M., for providing us an opportunity to interact with professional people in the real corporate world. I forward my gratitude for the compulsion of this most wonderful aspect of our MBA curriculum without which knowledge of management is incomplete and futile. At last I am also thankful to my family member and friends who had given me their constructive advice, educative suggestions, encouragement and co-operation to prepare this report.
CONTENTS
Particulars EXECUTIVE SUMMARY PART A :- INDUSTRY OVERVIEW Short history of Mutual Fund Concept of Mutual Fund in Detail Types of Mutual Fund Organization of Mutual Fund Phases of Mutual Fund Industry Type & Way to Invest Legal Framework of SEBI & AMFI Benefits of Mutual Fund Mutual Fund Players In India PART B : - COMPANY DETAIL History of HDFC About HDFC Mutual Fund Mutual Products at Glance Achievement & Awards PART C : - DEPARTMENT DETAILS Operation Department Details Marketing Department Details Human Resource Department Detail Finance Department Details PART D :- DIFFERENT SCHEMES OF HDFC Equity Schemes Balanced Schemes SWOT ANALYSIS CONCLUSION GLOSSARY BIBLIOGRAPHY SUGGESTIONS Page 06 08 09 10 14 15 21 25 26 28 31 34 35 36 41 44 45 46 48 53 59 74 75 83 87 88 89 90 92
EXECUTIVE SUMMARY
The economy is highly influenced by the Financial System of the country. The Indian Financial System has been broadly divided into two segments: the organized and unorganized. An investor has a wide array of investment avenues available. Economic well being in the long run depends significantly on how wise he invests. In present financial scenario where the economy is poised to grow at 9% ,as stated by our finance minister P Chidambaram, and the present bulls run in the capital
market ,where lot of money is being pumped into the economy by FII, and increasing disposable income with the generation next has created a problem of investment because there is lot money on hand but they dont know where to invest as there is no attractive return in the bank FD, PPF, KVP, NSC, MIS, and other Post saving scheme. Due to uncertainty in share market and low returns due to low interest a rate has left investor are puzzled, i.e. to spend the money or save the money. If to save the money then where to save it, so that they can get better return with flexibility, tax benefit and as well as capital appreciation. So it is necessary for investor to find the answer and way of capital growth with better return rather than uncertain share market and other low yield investment avenues. All investments involve risk in varying degrees, and hence it is necessary to understand risk profile of each investment avenues and know how it can affect your investments. There should be trade off between risk and return. There are also risks that are not in our control like inflation risk, credit risk, risk of sudden rise in oil prices, risk pertaining to political environment for instance. In present financial system, investment has lost their potential to earn additional income, which can help for growth of their capital because the interest return which varies from approx 4% to 8% and the inflation rate hovering in and around 5%-6% so the real return is varying between (-)2% to 2% so this is the real return what a investor gets by investing in FIXED DEPOSIT, GOVERNMENT SECURITY ,KVP,NSC,PPF,MIS and also blocking there money for min of 2-5 years ,in these instruments ,which is not very encouraging for an investor to invest in these instruments .So the investor is likely to spend his earnings than invest(save), which what is happening in our country. Mutual fund is indeed of great benefit in this respect. They provide the services of experienced and skilled professionals who determine this risk and monitor them on going basis they are also backed up by research, done by individual asset Management Company based on the fund objectives. When investors are confronted with an outstanding range of products, form traditional bank deposits to downright shady money-multiples schemes, it has to be judged on the yardsticks of returns, liquidity, safety, convenience and tax efficiency. An important question facing many investors across the country today is whether one should invest in a bank fixed deposit or in a debt-oriented Mutual Fund. Mutual fund
R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM) 6
gives an opportunity to the IFAs to select from different investment options ranging from liquid funds to diversified equity ,based on there clients appetite for risk and and the return they want . The data is contained from insurance advisors, income tax consultant, and post office agent. So the basic objective of the study was to test the potentiality and develop the business of mutual funds by obtaining the data form Independent financial advisors. During the training period and interaction with people it was found that awareness of Mutual Fund among IFAs was there to a limited extent but there was lot of misconceptions among them about mutual fund as I had meet few who had lost there money in UTI scam and others though where aware of mutual fund where not suggesting this to there clients as they thought it as to be to risky for there clients and those who where aware where really aggressive to take the opportunity offered by mutual fund to earn a high return. On the whole if I have to conclude my survey I would like to say that if we have to create awareness about diversified portfolio, professional management and SEBI Regulations and benefits it offers to IFAs and there clients and also we have to clear few misconception which IFAs have, to tap the huge potential which mutual fund market has to offer
PART A INDUSTRY OVERVIEW
SHORT HISTORY OF MUTUAL FUNDS

WHERE DID THEY COME FROM? Mutual funds are not an American invention. The first was started in the Netherlands in 1822, and the second in Scotland in the 1880's. Originally called investment trusts, the first American one was the New York Stock Trust, established in 1889. Most that followed were begun in Boston in the early 1920's, including the State Street Fund, Massachusetts Investor's Trust (now called MFS), Fidelity, Scudder, Pioneer, and the Putnam Fund. The Wellington Fund, the first balanced fund that included both stocks and bonds, was founded in 1928, and today is part of the giant Vanguard Funds
Group. In the 1960's there was a phenomenal rise in aggressive growth funds (with very high risk). Sometimes called "go-go" or "hot-shot" funds, they received the majority of the billions of dollars flowing into mutual funds at that time. In 1968 and 1969, over 100 of these new aggressive growth funds were established. A severe bear market began in the autumn of 1969. People became disillusioned with stocks and mutual funds. "The market's toast. Itll never get back to where it was!" was echoed by panicked investors. Unemployment grew; inflation went crazy, and investors pulled billions back out of the funds. They should have hung in there! Many funds have risen 9,000% since then. The 1970's saw a new kind of fund innovation: funds with no sales commission called "no load" funds. The largest and most successful no load family of funds is the Vanguard Funds, created by John Boggle in 1977. At the end of the 1920's there were only 10 mutual funds. At the end of the 1960's there were 244. Today there are more than 6,500 unique funds and even thousands more that differ only by their share class (how they are sold, and how their expenses are charged). Before we continue with all you need to know about mutual funds, here is something that merits your attention. Since 1940, no mutual fund has gone bankrupt. You sure can't say that about banks and savings and loans!
THE CONCEPT OF MUTUAL FUND IN DETAIL
A mutual fund is a common pool of money into which investors place their contributions that are to be invested in accordance with a stated objective. The ownership of the fund is thus joint or mutual, fund belongs to all investors. The work Mutual means a vehicle wherein the benefits of a certain investment are reaped by investors in proportion to their investment. A mutual fund uses the money collected from investors to buy those assets which are specifically permitted by its stated investment objective. Thus, an equity fund would buy equity assets ordinary shares, preference shares, warrants etc. A bond fund would buy debt instruments such as debentures, bonds or government securities. It is these assets which are owned by the investors in the same proportion as their contribution bears to the total contributions of all investors put together. When an investor subscribes to a mutual fund, he or she buys a part of the assets or the pool of funds that are outstanding at that time. It is no different from buying shares of joint stock Company, in which case the purchase makes the investor a part owner of the company and its assets. In fact, in the USA, a mutual fund is constituted as an investment company and an investor buys in to the fund, meaning he buys the shares of the fund. In India, a mutual fund is constituted as a Trust and the investor subscribes to the units issued by the fund, which is where the term Unit Trust comes from. However, whether the investor gets fund shares or units is only a matter of legal distinction. In any case, a mutual fund shareholder or unit-holder is a part owner of
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the funds assets. The term unit-holder includes the mutual fund account-holder or close-end fund shareholder. A Mutual Fund is a trust that pools the savings of a number 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 appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus Mutual fund is most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. WHY INVESTORS NEED MUTUAL FUNDS? Mutual Funds offer benefits, which are too significant to miss out. Any investment has to be judged on the yardsticks of return, liquidity and safety. Convenience and Tax efficiency are the other benchmark relevant in Mutual Fund investments. In the wonderful game of finance safety and return are two opposite goals and investor cannot be nearer to both at the same time. Mutual Funds are pooled resources that get invested in a diversified portfolio. The crux of Mutual Fund investing is averaging the risk. When risk is equalized so are the returns. When investor are confronted with a mind-boggling range of products, from traditional bank deposits to downright shady money-multiplier schemes-let alone the physical assets and non-conventional investments. Investor choice perhaps normally falls somewhere amongst the products shown in the table below:
(Source: Mutual Fund Review, Dec. 2003)
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Option
Current Yield
Capital Appreciati on High Negligible
Risk
Marketability or Liquidity
Convenie nce High High
Equity Shares Non Convertible Debentures Growth Schemes Income Schemes Bank Deposits PPF Life Insurance Residential House Gold and Silver
Low High
High Low
Variable Average
Low High Moderate Nil Nil Low Nil
High Low Nil High Moderate High Moderate
High Low Negligible Nil Nil Negligible Average
High High High Average Average Low Average
Very High Very High Very High Very High Very High Fair Average
Many investors possibly dont know that considering returns alone, many Mutual Funds have outperformed a host of other investment products. Mutual Funds have historically delivered yields averaging between 9% to 25% over a medium to long time frame (source: www.moneycontrol.com). The duration is important because like wise, Mutual Fund returns taste better with the passage of time. Investor should be prepared to lock in your investments preferably for 3 years in an income fund and 5 years in an equity fund. Liquid Funds of course, generate returns even in a very short term. Performance analysis of several funds shows that depending on the scheme and the duration returns from funds average between 9% to 25%. Such average may be misleading, as some would have fared poorly while others would have posted phenomenally high returns. however level out.
The burden of intelligent choice therefore rests on
investor. As the market matures and funds develop equal capabilities returns may
Besides, unlike in a bank deposit or an investment in bonds, returns in Mutual Funds may fluctuate according to market volatility. A sufficiently longer time span will help Mutual Funds yield their best returns. Another critical benchmark for comparing investment options is liquidity. Liquidity refers to the case with which investor can quickly convert investments back into cash at least cost. Mutual Fund score high on this benchmark too. And depending on the schemes investor chooses, Mutual Funds have diverse risk profiles high, medium and even low. Investor can choose the scheme that best matches his risk appetite. But the decisive charm of Mutual Funds lies not so much in their returns. It is the convenience and tax efficiency that till the balance in favour of Mutual Funds. Convenience of open-end funds is evident in their free entry and exits, systematic investment and withdrawal plans. Mutual Fund Operation Flow Chart
TYPES OF MUTUAL FUNDS
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There are two BASIC TYPES of mutual funds. "Open-ended" or "Open" mutual funds are the most common type of mutual funds. Investors may purchase units from the fund sponsor or redeem units at the valuation promised in the fund documents, usually on a daily basis. "Closed-ended" or "Closed" mutual funds are traded as financial securities, once they are issued, and holders must sell their units on the stock market to receive their funds back.
1. AS PER INVESTMENT OBJECTIVE Schemes can be classified by the way of their stated investment objective such as Growth Fund, Balanced Fund and Income Fund etc 1) EQUITY ORIENTED SCHEMES These schemes, also commonly called Growth Schemes, seek to invest a majority of their funds in equities and a small portion in money market instruments. Such schemes have the potential to deliver superior returns over the long term. However, because they invest in equities, these schemes are exposed to fluctuations in value especially in the short term. Equity schemes are hence not suitable for investors seeking regular income or needing to use their investments in the short term. They are ideal for investors who have a long term investment horizon.
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General Purpose The investment objectives of general-purpose equity schemes do not restrict them to invest in specific industries or sectors. They thus have a diversified portfolio of companies across a large spectrum of industries. While they are exposed to equity price risks, diversified general purpose equity funds seek to reduce the sector or stock specific risks through diversification. They mainly have market risk exposure. HDFC Growth Fund is a general purpose equity scheme. Sector Specific The schemes restrict their investing to one or more pre-defined sectors, e.g. technology sector. Since they depend upon the performance of select sectors only, these schemes are inherently more risky than general purpose schemes. They are suited for informed investors who wish to take a view and risk on the concerned sector. Special Schemes I. Index Schemes The primary purpose of an Index is to serve as a measure of the performance of the market as a whole, or a specific sector of the market. An Index also serves as a relevant benchmark to evaluate the performance of mutual funds. Some investors are interested in investing in the market in general rather than investing in any specific fund. Such investors are happy to receive the returns posted by the markets. As it is not practical to invest in each and every stock in the market in proportion to its size, these investors are comfortable investing in a fund that they believe is a good representative of the entire market. Index Funds are launched and managed for such investors. II. Tax Saving Schemes Investors (individuals and Hindu Undivided Families (HUFs)) are being encouraged to invest in equity market through Equity Linked Savings Scheme (ELSS) by offering them a tax rebate. Units purchased cannot be assigned/ transferred/ pledged/ redeemed/ switched out until completion of 3years from the date of allotment of the respective Units.
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The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Regulations, 1996 and the notifications issued by the Ministry of Finance (Department of Economic Affairs), Government of India regarding ELSS. III. Real Estate funds Specialized real estate funds would invest in real estates directly, or may fund real estate developers or lend to them directly or buy shares of housing of finance companies or may even buy their securitized assets. 2) DEBT BASED SCHEME These schemes are commonly called Income Schemes; invest in debt securities such as corporate bonds, debentures and government securities. The prices of these schemes tend to be more stable compared with the equity schemes and most of the returns to the investors are generated through dividends or steady capital appreciation. These schemes are ideal for conservative investors or those not in a position to take higher equity risks, such as retired individuals. However, as compared to the money market schemes they do have a higher price fluctuation risk and compared to a Gilt fund they have a higher credit risk. I. Income Schemes These schemes invest in money markets, bonds and debentures of corporate with medium and long term maturities. These schemes primarily target current income instead of capital appreciation. They therefore distribute a substantial part of their distributable surplus to the investor by way of dividend distribution. Such schemes usually declare quarterly dividends and are suitable for conservative investors who have medium to long term investment horizon and are looking for regular income through dividend or steady capital appreciation. Liquid Income Schemes Similar to the Income scheme but with a shorter maturity than Income schemes. II. Money Market Schemes These schemes invest in short term instruments such as commercial paper (CP), certificates of deposit (CD), treasury bills (T-Bill) and overnight money (Call).
The schemes are the least volatile of all the types of schemes because of their investments in money market instrument with short term maturities. These schemes have become popular with institutional investors and high net worth individuals having short term surplus funds. III. Gilt fund This scheme primarily invests in Government Debt. Hence the investor usually does not have to worry about the credit risk since Government Debt is generally credit risk free. 3) HYBRID SCHEMES These schemes are commonly known as balanced schemes. These schemes invest in both Equity as well as Debt. By investing in a mix of this nature, balanced schemes seek to attain the objective of income and moderate capital appreciation and are ideal for investors with a conservative, long term orientation. 2. AS PER CONSTITUTION 1) OPEN ENDED MUTUAL FUNDS Open-ended schemes do not have a fixed maturity period. Investors can buy or sell units at NAV-related prices from and to the mutual fund on any business day. These schemes have unlimited capitalization, open-ended schemes do not have a fixed maturity, there is no cap on the amount you can buy from the fund and the unit capital can keep growing. These funds are not generally listed on any exchange. 2) CLOSE-ENDED MUTUAL FUNDS Close-ended schemes have fixed maturity periods. Investors can buy into these funds during the period when these funds are open in the initial issue. After that such schemes can not issue new units except in case of bonus or rights issue. However, after the initial issue, you can buy or sell units of the scheme on the stock exchanges where they are listed. The market price of the units could vary from the NAV of the
scheme due to demand and supply factors, investors expectations and other market factors 3) INTERVAL SCHEME These schemes combine the features of open-ended and close-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV based prices.
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ORGANISATION OF MUTUAL FUND
THE STRUCTURE CONSISTS OF: SPONSOR Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the Investment managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996. The sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund. TRUST The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.
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TRUSTEE Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders and ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner. ASSET MANAGEMENT COMPANY (AMC) The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund. At least 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. The AMC must have a net worth of at least 10 cores at all times. REGISTRAR AND TRANSFER AGENT The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.
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PHASES OF MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. The history of mutual fund in India can be broadly divided into four distinct phases.
Phases of Mutual Fund Industry in India
se a Ph
IV
Ph as
FIRST PHASE 1964-1987 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978, UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme in 1964. At the end of 1988 UTI had Rs.6, 700 cores of assets under management.
Ph a
eII I
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se
-II
Ph as e-I
SECOND PHASE 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non-UTI, public sector mutual funds set up by the public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987 Name of the Mutual Fund Company SBI Mutual Fund Can bank Mutual Fund Punjab National bank Mutual Fund Indian bank Mutual Fund Bank of India Mutual Fund Bank of Baroda Mutual Fund LIC Mutual Fund GIC Mutual Fund Time of establishment June December August November June October June December 1987 1987 1989 1989 1990 1992 1989 1990
At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 cores. THIRD PHASE 1993-2003 (Entry of Private Sector Funds) With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being under which all the mutual funds except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first privates sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.
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The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with the total assets of Rs. 1, 12,805 cores. The Unit Trust of India with Rs. 44,541 cores of assets under management was way ahead of other mutual funds. FOURTH PHASE since February 2003 In February 2003, following the repeal of the Unit Trust of India Act 1963, UTI was bifurcated into two separate entities. One is the specified undertaking of the Unit Trust of India with assets under management of Rs.29, 835 cores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The specified undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 cores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations and with the recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs. 153108 cores under 421 schemes.
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The graph indicates the growth of assets over the years.
Note Erstwhile UTI was bifurcated into UTI Mutual fund and the Specified Undertaking of the Unit Trust of India effective from February 2003. The Assets under management of the Specified Undertaking of the Unit Trust of India has thereof been executed from the total assets of the industry as a whole from February 2003 onwards.
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THE WAY & TYPE TO INVEST IN MUTUAL FUND

Mutual funds normally come out with an advertisement in newspapers publishing the date of launch of the new schemes. Investors can also contact the agents and distributors of mutual funds who are spread all over the country for necessary information and application forms. Forms can be deposited with mutual funds through the agents and distributors who provide such services. Now days, the post offices and banks also distribute the units of mutual funds. However, the investors may please note that the mutual funds schemes being marketed by banks and post offices should not be taken as their own schemes and no assurance of returns is given by them. The only role of banks and post offices is to help in. distribution of mutual funds schemes to the investors. Investors should not be carried away by commission/gifts given by agents/distributors for investing in a particular scheme. On the other hand they must consider the track record of the mutual fund and should take objective decision. ONE TIME INVESTMENT The amount that has to be invested in onetime is known as Onetime Investment. The investor has to pay the whole amount at once. The minimum amount is Rs. 5000 and maximum is as per the investors Choice. This investment is generally preferred for the business man who Are able to pay at one time. SYSTEMATIC INVESTMENT PLAN (SIP) The amount that has to be invested through same monthly installment is known as Systematic Investment Plan. The investor has to pay the minimum amount Rs.1000 monthly for all equity and balanced schemes like that for 6months. And Rs.500 monthly for Tax Saver scheme like that for 12 months. The minimum amount that the investor has to invest is Rs6000 and maximum as per their choice. This type of investment is generally preferred for the salaried people.
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LEGAL FRAME WORK OF SEBI & AMFI

REGULATORY ASPECTS OF MUTUAL FUNDS: In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The objectives of SEBI are to protect the interest of investors in securities and to promote the development of and to regulate the securities market. SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. GUIDELINES OF SEBI & AMFI Mutual funds are regulated by the SEBI (mutual Fund) Regulations, 1996. SEBI is the regulator of all funds, except offshore funds. Bank-sponsored mutual funds are jointly regulated by SEBI and RBI.
The bank-sponsored fund cannot provide a guarantee without RBI Permission. are invested.
RBI regulates money and government securities markets, in which mutual Funds Listed mutual funds are subject to the listing regulations of stock exchange.
Since the AMC and Trustee Company are companies, the Department of Company affairs regulate them. They have to send periodic reports to the ROC (Register of Companies) and the CLB (Company Law Board) is the appellate authority.
Investors cannot sue the trust, as they are the same as the trust and cant sue themselves. UTI does not have a separate sponsor and AMC.
UTI is governed by the UTI Act, 1963 and is voluntarily under SEBI Regulations.
UTI can borrow as well as lend also engage in other financial services activities. Only AMFI certified agents can sell Mutual Fund units.
Mutual Funds Company is required to update the NAV of the scheme on the AMFI website on a daily basis in case of open-ended scheme.
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REGULATORY OF MUTUAL FUND IN INDIA

SEBI The capital market regulates the mutual funds in India. SEBI requires all mutual funds to be registered with them. SEBI issues guidelines for all mutual funds operationsinvestment, accounts, expenses etc. Recently, it has been decided that Money Market Mutual Funds of registered mutual funds will be regulated by SEBI through (Mutual Fund) Regulations 1996. RBI RBI, a supervisor of the Banks owned Mutual Funds-As banks in India come under the regulatory Jurisdiction of RBI, banks owned funds to be under supervision of RBI and SEBI. RBI has supervisory responsibility over all entities that operate in the money markets. MINISTRY OF FINANCE (MOF) Ministry of Finance ultimately supervises both the RBI and the SEBI and plays the role of apex authority for any major disputes over SEBI guidelines. COMPANY LOW BOARD Registrar of companies is called Company Low Board. AMCs of Mutual Funds are companies registered under the companies Act 1956 and therefore answerable to regulatory authorities empowered by the Companies Act. STOCK EXCHANGE Stock Exchanges are Self-regulatory organizations supervised by SEBI. Many closed ended funds of AMCs are listed as stock exchanges and are traded like shares. OFFICE OF THE PUBLIC TRUSTEE Mutual Fund being public trust is governed y the Indian Trust Act 1882. The Board of trustee or the Trustees Company is accountable to the office of public trustee, which in turn reports to the Charity commissioner.
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BENEFITS OF MUTUAL FUND
There are numerous benefits of investing in mutual funds and one of the key reasons for its phenomenal success in the developed markets like US and UK is the range of benefits they offer, which are unmatched by most other investment avenues. We have explained the key benefits in this section. The benefits have been broadly split into universal benefits, applicable to all schemes and benefits applicable specifically to open-ended schemes.
1. AFFORDABILITY A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment objective of the scheme. An investor can buy in to a portfolio of equities, which would otherwise be extremely expensive. Each unit holder thus gets an exposure to such portfolios with an investment as modest as Rs.500/-. This amount today would get you less than quarter of an Infosys share! Thus it would be affordable
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for an investor to build a portfolio of investments through a mutual fund rather than investing directly in the stock market. 2. DIVERSIFICATION The nuclear weapon in your arsenal for your fight against Risk. It simply means that you must spread your investment across different securities (stocks, bonds, money market instruments, real estate, fixed deposits etc.) and different sectors (auto, textile, information technology etc.). This kind of a diversification may add to the stability of your returns, for example during one period of time equities might under perform but bonds and money market instruments might do well enough to offset the effect of a slump in the equity markets. Similarly the information technology sector might be faring poorly but the auto and textile sectors might do well and may protect your principal investment as well as help you meet your return objectives. 3. VARIETY Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two ways: first, it offers different types of schemes to investors with different needs and risk appetites; secondly, it offers an opportunity to an investor to invest sums across a variety of schemes, both debt and equity. For example, an investor can invest his money in a Growth Fund (equity scheme) and Income Fund (debt scheme) depending on his risk appetite and thus create a balanced portfolio easily or simply just buy a Balanced Scheme. 4. PROFESSIONAL MANAGEMENT Qualified investment professionals who seek to maximize returns and minimize risk monitor investor's money. When you buy in to a mutual fund, you are handing your money to an investment professional that has experience in making investment decisions. It is the Fund Manager's job to (a) find the best securities for the fund, given the fund's stated investment objectives; and (b) keep track of investments and changes in market conditions and adjust the mix of the portfolio, as and when required.
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5. TAX BENEFITS Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit holders. However, as a measure of concession to Unit holders of openended equity-oriented funds, income distributions for the year ending March 31, 2003, will be taxed at a confessional rate of 10.5%. In case of Individuals and Hindu Undivided Families a deduction unto Rs. 9,000 from the Total Income will be admissible in respect of income from investments specified in Section 80L, including income from Units of the Mutual Fund. Units of the schemes are not subject to Wealth-Tax and Gift-Tax. 6. REGULATIONS Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds and also prescribe disclosure and accounting requirements. Such a high level of regulation seeks to protect the interest of investors. 7. CONVENTIONAL ADMINISTRATION Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient. higher return as they invest in a diversified basket of selected securities. 8. LIQUIDITY In open-ended mutual funds, you can redeem all or part of your units any time you wish. Some schemes do have a lock-in period where an investor cannot return the units until the completion of such a lock-in period. 9. CONVENIENCE An investor can purchase or sell fund units directly from a fund, through a broker or a financial planner. The investor may opt for a Systematic Investment Plan (SIP) or a Systematic Withdrawal Advantage Plan (SWAP). In addition to this an investor receives account statements and portfolios of the schemes.
Return
Potential Over a medium to long-term; Mutual Funds have the potential to provide a
MUTUAL FUND PLAYER IN INDIA

A) Bank Sponsored 1. Joint Ventures - Predominantly Indian a. SBI Funds Management Private Ltd. 2. Others a. BOB Asset Management Co. Ltd. b. Can bank Investment Management Services Ltd. c. UTI Asset Management Co. Private Ltd. B) Institutions a. Jeevan Bima Sahayog Asset Management Co. Ltd. C) Private Sector 1. Indian a. Benchmark Asset Management Co. Private Ltd. b. Cholamandalam Asset Management Co. Ltd. c. Credit Capital Asset Management Co. Ltd. d. Escorts Asset Management Ltd. e. J. M. Financial Asset Management Private Ltd. f. Kotak Mahindra Asset Management Co. Ltd. g. Reliance Capital Asset Management Ltd. h. Sahara Asset Management Co. Private Ltd i. Sundaram Asset Management Co. Ltd. j. Tata Asset Management Ltd. 2. Joint Ventures - Predominantly Indian a. Birla Sun Life Asset Management Co. Ltd. b. DSP Merrill Lynch Fund Managers Ltd. c. HDFC Asset Management Co. Ltd. d. Prudential ICICI Asset Management Co. Ltd. 3. Joint Ventures - Predominantly Foreign a. ABN AMRO Asset Management (India) Ltd. b. Deutsche Asset Management (India) Private Ltd. c. Fidelity Fund Management Private Ltd. d. Franklin Templeton Asset Management (India) Private Ltd. e. HSBC Asset Management (India) Private Ltd. f. ING Investment Management (India) Private Ltd. g. Morgan Stanley Investment Management Private Ltd. h. Principal Pnb Asset Management Co. Private Ltd. i. Standard Chartered Asset Management Co. Private Ltd.
AUM OF COMPETITORS
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Assets Under Management (AUM) as at the end of May-2007 (Rs in Lakes) Mutual Fund Name AUM Average AUM For The Month Excluding Fund Of Excluding Fund Of Fund Of Funds Fund Of Funds Funds Funds 687443.08 36549.73 626525.88 35964.53 N/A 641785.64 2371946.37 9759.11 291004.49 247308.99 728368.45 1185328.84 13247.54 881348.73 2627635.74 3614666.74 1458564.08 5070300.11 554148.05 377249.74 N/A 1672255.56 990442.2 362314.83 318066.94 N/A 0 1905.17 0 0 0 0 0 0 4365.86 30636.2 0 0 3907.38 81847.32 0 N/A 54018.22 0 0 0 N/A 543258.09 2177700.58 10249.22 267091.92 211747.28 718837.47 1176345.78 11715.44 844375.84 N/A 0 1890.64 0 0 0 0 0 0 4476.53
1. ABN AMRO Mutual Fund 2. AIG Global Investment Group Mutual Fund 3. Benchmark Mutual Fund 4. Birla Sun Life Mutual Fund 5. BOB Mutual Fund 6. Canbank Mutual Fund 7. DBS Chola Mutual Fund 8. Deutsche Mutual Fund 9. DSP Merrill Lynch Mutual Fund 10. Escorts Mutual Fund 11. Fidelity Mutual Fund 12. Franklin Templeton Mutual Fund 13. HDFC Mutual Fund 14. HSBC Mutual Fund 15. ICICI Prudential Mutual Fund 16. ING Mutual Fund 17. JM Financial Mutual Fund 18. JPMorgan Mutual Fund 19. Kotak Mahindra Mutual Fund 20. LIC Mutual Fund 21. Lotus India Mutual Fund 22. Morgan Stanley
2536497.59 31101.51 3388820.86 1350481 4599486.19 0 0 3870.1
426654.38 83156.41 350488.13 0 N/A N/A
1454533.63 52628.06 969282.55 280596.17 310005.39 0 0 0
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Mutual Fund 23. PRINCIPAL Mutual Fund 24. Quantum Mutual Fund 25. Reliance Mutual Fund 26. Sahara Mutual Fund 27. SBI Mutual Fund 28. Standard Chartered Mutual Fund 29. Sundaram BNP Paribas Mutual Fund 30. Tata Mutual Fund 31. Taurus Mutual Fund 32. UTI Mutual Fund Grand Total
1314851.07 6105.59 5914347.61 17646.54 1966082.91 1617021.76 1534.45 1014528.63 1408188.86 30547.23 4007016.87 41399522 0 0 0 0 214764.3
0 0 0 0 0
1089590.26 6015.5 5763304.33 17316.89
0 0 0 0
1952036.51 0 1583682.27 1579.72 899695.06 1345348.07 30198.75 3677723.39 38619604.4 0 0 0 0 214668
PART B
COMPANY DETAIL
MAN WITH A MISSION

If ever there was a man mission Parekh, and Emeritus, left Mr. H.T. PAREKH is conferred the Padma Bhushan by the Government
with it
a was
Hasmukhbhai Founder Chairmanof earthly
HDFC Group who this
of India in the year 1992.
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abode on November 18, 1994. Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial career at Harkisandass Lukhmidass a leading stock broking firm. The firm closed down in the late seventies, but, long before that, he went on to become a towering figure on the Indian financial scene. In 1956 he began his lifelong financial affair with the economic world, as General Manager of the newly-formed Industrial Credit and Investment Corporation of India (ICICI). He rose to become Chairman and continued so till his retirement in 1972. At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious than his first. His vision for mortgage finance for housing gave birth to the Housing Development Finance Corporation it was a trend-setter for housing finance in the whole Asian continent. He was also a writer in his own right. There are over 200 published articles by him... In 1992, the Government of India honoured him with the Padma Bhushan Award. The London School of Economics & Political Science conferred on him an Honorary Fellowship. He was one of the Founder Members of the Centre for Advancement of Philanthropy, and its Chairman till 1993. He took active interest in the Bombay Community Public Trust, designed specifically to serve the needs of the citys underprivileged citizens. When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he said: Taking over from H.T. Parekh is a formidable task; his vision brought about not only an institution, but an entire concept which has proved itself to be of lasting importance. Today we are the largest residential mortgage finance institution in India, with a net worth of Rs. 2,703 cores as of March 31, 2006 and an asset base of over Rs. 22,000 cores. We also aim to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. Over a span of 25 years, HDFC has become the pioneer in housing finance in India and made it possible for over two million Families to own their homes, through housing loans worth over Rs. 42,000 cores.
ABOUT COMPANY HDFC
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VISION To be a dominant player in the Indian mutual fund space, recognized for its high levels of ethical and professional conduct and a commitment towards enhancing investor interests. ORGANIZATION AND MANAGEMENT HDFC is a professionally managed organization with a board of directors consisting of eminent persons who represent various fields including finance, taxation, construction and urban policy & development. The board primarily focuses on strategy formulation, policy and control, designed to deliver increasing value to shareholders. Name and Designation Location Contact Number Mr. Deepak S. Parekh is the executive Chairman of the Corporation. He is fellow of the Institute of Chartered Accountants (England & Wales).Mr. Parekh joined the Corporation in a senior management position in 1978.He was inducted as a whole time director of the Corporation in 1985 and was appointed as the Chairman in 1993. He is the chief executive officer of the Corporation Mumbai. Mr. K. M. Mistry the Managing Director of the Corporation. Is a Fellow of the Institute of Chartered Accountants of India? He has been employed with the Corporation since 1981 and was the executive director of the Corporation since 1993. He was appointed as the deputy managing director in 1999 and the Managing Director in 2000. He is also a member of the Investors Grievance Committee of Directors. Ms. Renu S. Karnad the Executive Director of the Corporation. Is a graduate in law and holds a Masters degree in economics from Delhi University. She has been employed with the
Corporation since 1978 and was appointed as the Executive Director of the Corporation in 2000. She is responsible for overseeing all aspects of lending operations of HDFC.New Delhi. BOARD OF DIRECTORS Mr. D S Parekh - Chairman Mr. Keshub Mahindra - Vice Chairman Ms. Renu S. Karnad - Executive Director Mr. K M Mistry - Managing Director Mr. Shirish B Patel Mr. B S Mehta Mr. D N Ghosh Dr. S A Dave Mr. S Venkitaramanan Dr. Ram S Tarneja Mr. N M Munjee Mr. D M Satwalekar
HDFC ASSET MANAGEMENT COMPANY LIMITED (AMC) AMC was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an AMC for the Mutual Fund by SEBI on July 30, 2000. The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Back bay Reclamation, Church gate, Mumbai - 400 020. In terms of the Investment Management Agreement, the Trustee has appointed HDFC Asset Management Company Limited to manage the Mutual Fund As per the terms of the Investment Management Agreement, the AMC will conduct the operations of the Mutual Fund and manage assets of the schemes, including the schemes launched from time to time. The present share holding pattern of the AMC is as follows: Particulars Standard Life Investments Limited % of the paid up capital 49.90
Housing Development Finance Corporation Limited 50.10
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Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of its overall strategy, had decided to divest its Asset Management business in India. The AMC had entered into an agreement with ZIC to acquire the said business, subject to necessary regulatory approvals. On obtaining the regulatory approvals, the Schemes of Zurich India Mutual Fund has now migrated to HDFC Mutual Fund on June 19, 2003. These schemes have been renamed as follows: FORMER NAME Zurich India Equity Fund Zurich India Prudence Fund Zurich India Capital Builder Fund Zurich India Tax Saver Fund Zurich India Top 200 Fund Zurich India High Interest Fund Zurich India Liquidity Fund Zurich India Sovereign Gilt Fund NEW NAME HDFC Equity Fund HDFC Prudence Fund HDFC Capital Builder Fund HDFC Tax Saver Fund HDFC Top 200 Fund HDFC High Interest Fund HDFC Liquidity Fund HDFC Sovereign Gilt Fund
The AMC is managing 2 close ended Income Scheme viz. HDFC Fixed Investment Plan and HDFC Long Term Equity Fund and 23 open-ended schemes of the Mutual Fund viz. HDFC Growth Fund (HGF), HDFC Balanced Fund (HBF), HDFC Income Fund (HIF), HDFC Liquid Fund (HLF), HDFC Long Term Advantage Fund, HDFC Tax Plan 2000 (HTP), HDFC Children's Gift Fund (HDFC CGF), HDFC Gilt Fund (HGILT), HDFC Short Term Plan (HSTP), HDFC Index Fund, HDFC Floating Rate Income Fund (HFRIF), HDFC Equity Fund (HEF), HDFC Top 200 Fund, (HT200), HDFC Capital Builder Fund (HCBF), HDFC Tax Saver (HTS), HDFC Prudence Fund (HPF), HDFC High Interest Fund (HHIF), HDFC Sovereign Gilt Fund (HSGF) and HDFC Cash Management Fund (HCMF), HDFC MF Monthly Income Plan (HMIP), HDFC Core & Satellite Fund (HSCF), HDFC Multiple Yield Fund
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(HMYF), HDFC Premier Multi-Cap Fund (HPM) and HDFC Multiple Yield Fund Plan 2005 (HMY2005). The AMC is also providing portfolio management / advisory services and such activities are not in conflict with the activities of the Mutual Fund. The AMC has renewed its registration from SEBI vide Registration No. - PM / INP000000506 dated December 22, 2000 to act as a Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is valid from January 1, 2004 to December 31, 2006. SPONSORS HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC): HDFC was incorporated in 1977 as the first specialised housing finance institution in India. HDFC provides financial assistance to individuals, corporate and developers for the purchase or construction of residential housing. It also provides property related services (e.g. property identification, sales services and valuation), training and consultancy. Of these activities, housing finance remains the dominant activity. HDFC currently has a client base of over 8, 00,000 borrowers, 12, 00,000 depositors, 92,000 shareholders and 50,000 deposit agents. HDFC raises funds from international agencies such as the World Bank, IFC (Washington), USAID, CDC, ADB and KFW, domestic term loans from banks and insurance companies, bonds and deposits. HDFC has received the highest rating for its bonds and deposits program for the ninth year in succession. HDFC Standard Life Insurance Company Limited, promoted by HDFC was the first life insurance company in the private sector to be granted a Certificate of Registration (on October 23, 2000) by the Insurance Regulatory and Development Authority to transact life insurance business in India. 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, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. STANDARD LIFE INVESTMENTS LIMITED The Standard Life Assurance Company was established in 1825 and has considerable experience in global financial markets. In 1998, Standard Life Investments Limited became the dedicated investment management company of the Standard Life Group and is owned 100% by The Standard Life Assurance Company. With global assets under management of approximately US$186.45 billion as at March 31, 2005, Standard Life Investments Limited is one of the world's major investment companies and is responsible for investing money on behalf of five million retail and institutional clients worldwide. With its headquarters in Edinburgh, Standard Life Investments Limited has an extensive and developing global presence with operations in the United Kingdom, Ireland, Canada, USA, China, Korea and Hong Kong. In order to meet the different needs and risk profiles of its clients, Standard Life Investments Limited manages a diverse portfolio covering all of the major markets world-wide, which includes a range of private and public equities, government and company bonds, property investments and various derivative instruments. The company's current holdings in UK equities account for approximately 2% of the market capitalization of the London Stock Exchange. HDFC MUTUAL FUND PRODUCTS Equity Funds HDFC Growth Fund HDFC Long Term Advantage Fund HDFC Index Fund HDFC Equity Fund HDFC Capital Builder Fund
HDFC Tax saver HDFC Top 200 Fund HDFC Core & Satellite Fund HDFC Premier Multi-Cap Fund HDFC Long Term Equity Fund HDFC Mid-Cap Opportunity Fund Balanced Funds HDFC Children's Gift Fund Investment Plan HDFC Children's Gift Fund Savings Plan HDFC Balanced Fund HDFC Prudence Fund Debt Funds HDFC Income Fund HDFC Liquid Fund HDFC Gilt Fund Short Term Plan HDFC Gilt Fund Long Term Plan HDFC Short Term Plan HDFC Floating Rate Income Fund Short Term Plan HDFC Floating Rate Income Fund Long Term Plan HDFC Liquid Fund - PREMIUM PLAN HDFC Liquid Fund - PREMIUM PLUS PLAN HDFC Short Term Plan - PREMIUM PLAN HDFC Short Term Plan - PREMIUM PLUS PLAN HDFC Income Fund Premium Plan HDFC Income Fund Premium plus Plan HDFC High Interest Fund HDFC High Interest Fund - Short Term Plan HDFC Sovereign Gilt Fund - Savings Plan HDFC Sovereign Gilt Fund - Investment Plan HDFC Sovereign Gilt Fund - Provident Plan HDFC Cash Management Fund - Savings Plan HDFC Cash Management Fund - Call Plan HDFCMF Monthly Income Plan - Short Term Plan
HDFCMF Monthly Income Plan - Long Term Plan HDFC Cash Management Fund - Savings Plus Plan HDFC Multiple Yield Fund HDFC Multiple Yield Fund Plan 2005
HDFC MUTUAL FUND AT A GLANCE

Name of Unit Address : : HDFC MUTUAL FUND 2nd Floor, Shiv Darshan, 5 Jagnath Plot,Dr.Radhakrishna Road, Rajkot. Form of Organization : Private Sector
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Contact Number Establishment year Sponsors
: : :
(0281)-5524881/82 2000 Housing Development Finance Corporation Limited (HDFC), Standard Life Investments Limited.
Management
Trustee. HDFC Asset Management Company Limited (AMC).
Working Hours Web site
: :
9.30 am to 9.00 p.m www.hdfcfund.com
ACHIEVEMENT AND AWARDS

HDFC Prudence fund has been ranked ICRA-MFR 1, and Has Been awarded the Gold Award for Best Performance in the category of Open Ended Balanced Scheme for one year Period Ending Dec 31, 2005. HDFC Tax saver fund has been ranked ICRA-MFR 1, and Has Been Silver award for Second Best Performance in the category of Open Ended Equity Linked Saving Scheme(ELSS) for Three year Period Ending Dec 31, 2005.
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HDFC MIP~LTP has been ranked ICRA-MFR 1, and Has been awarded the Gold Award For Best Performance in the category of Open Ended Marginal Equity Scheme for one year Period Ending Dec 31, 2005.
PART C
DEPARTMENT DETAILS
OPERATION DETAILS
PRODUCTION / OPERATION PROCESS A process is any activity or group of activities that takes one or more inputs, transforms and add value to them, and provides one or more output for its customers. The term operation management refers to the direction and control of the process that transform inputs into product and services.
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LOCATION DETAILS HDFC AMC is located at Yagnik road which is in the heart of the city where service is easily available for all customer and easy access compare with other place that available in city. Location has major impact on success or failure of operation. Advantages of this type of location are that service cost and distribution cost is minimum comparison with other place. The major investor service centres of HDFC MUTUAL FUND are as below.
LAYOUT DETAILS There is a plan of all the act of planning & optimum arrangement of planning including flow of man & material and customer, operating equipment, storage space, material handling equipments and all other supporting services along with the design of best structure to contain all these facilities. PLANNING AND CONTROL It is useful for effective utilization of resources, to achieve organization goal and objectives with respect to quality service, cost control timely service to co-ordinate with other department to ensure continuous quality service. There is a proper planning and planning with respect to which type of scheme to be introduced, what are
expenses of R&D for finding out feasibility of that scheme, how many people will work on that particular job, before introducing new scheme. There is special research department for carrying out the analysis of market and there is a fund manager who carries out all planning for investing in various sector and he is also responsible for controlling the cost of transaction so that it can give return to investors. MAINTENANCE HDFC AMC is the service sector industry so all work is carried out with the help of computer System. There is contract given to service provider and other maintenance is done by staff itself. PROCUREMENT HDFC AMC is the service sector industry so procurement is only for computer machinery and computer stationary and other stationary include brochures of all the schemes and monthly fact sheet is used in daily work. Procurement of computer machinery is done through central contract of main branch and for procurement of stationary is done through local stationary distributor. STORE MANAGEMENT HDFC AMC is the service sector industry so storage is only for files and fact sheet and other document that published by AMC.
MARKETING DETAILS
Marketing generally refers as the task of creating, promoting and delivering goods and services to consumers and business. Marketing managers seeks to influence the level of timing and composition of demand to meet the organisations objectives. Marketing people are involved in 10types of entities: goods, services, experiences, events, persons, places, properties, organization, information and ideas. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.
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Marketing is defined as a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. The basic four Ps of marketing are PRODUCT, PRICE, PLACE and PROMOTION. MARKETINGSCENARIO The last few years have seen an increased attention to mutual funds across all genres of investors big or small, individuals or corporate. The growing awareness of the advantages that mutual funds offer over other investments avenues have been better communicated and more understood. A mutual fund is the ideal investment vehicle for todays complex and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. A mutual fund is answer to all these situations. It appoints professionally qualified and experienced staffs that manages each of these functions on a fulltime basis. Now, Mutual Fund is new developing market. In fact, the mutual fund vehicle exploits economies of scale in all three areas research, investment and transaction processing. MARKET SEGMENTATION Market segmentation is an effort to increase a companys precision marketing. A market segment consists of large identifiable group within a market with similar wants, purchasing power, buying attitudes or buying habits. As HDFC mutual fund is a service sector industry they introduce different schemes for different people. Each person is different in nature and each have differ criteria for investment like risk factor, return, liquidity, tax benefits etc. So that HDFC Asset management company have introduced variety of scheme like debt scheme, balanced scheme, equity related scheme and each schemes have option
to invest in SIP (Systematic Investment Plan) which help investor to invest a specific amount for a continuous period, at regular intervals so that investor has the advantage of rupee cost averaging and also helps him save compulsorily a fixed amount each amount. TARGET MARKET HDFC Asset Management Company is a joint venture of HDFC bank (50.10%) and Standard Life Investment Limited (49.90%). The joint venture was formed with the key objective of providing the Indian investor mutual fund products to suit a variety of investment needs. HDFC Asset Management Company, have variety of scheme both open ended and close ended scheme. Both have different objective and different target market. Equity Mutual Fund Scheme has target market of person who wants to take high risk and also expect high return. Balanced scheme have target market of person who wants to take moderate risk and expect average return and Debt scheme have target market of person who wants to take less risk. Close ended scheme have target market of person who wants long term equity investment. CUSTOMERS PROFILE HDFC Asset Management Company, have variety scheme and each scheme have different customer profile. For Equity related scheme customer profile is young generation, for liquid scheme customer profile is business man who wants to utilize their money in effective manner for shorter period, in SIP (Systematic Investment Plan) customer basically are serviced person who invest regularly and want to earn more than average return. Thus, HDFC Asset Management Company, have introduced variety of scheme to suit need of variety of customer. POSITIONING STRATEGY Positioning is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind. Positioning starts with a product. A piece of merchandise, a service, a company, an institution, or even a person. But positioning is not what you do to a product.
Positioning is what you do the mind of the prospect. That is, you position the product in the mind of prospect. A companys differentiating and positioning strategy must change as the product, market, and competitors change over time. Once the company has developed a clear positioning strategy, it must communicate at the positioning effectively. There should be no under positioning, over positioning, confused positioning or doubtful positioning. HDFC Asset Management Company, have positioning strategy of Continuing a Tradition of Trust. It is accurate positioning strategy because it signifies a trust with its clients. Here is special Relationship Manager dedicated towards customer service and satisfaction and give them guidance about various schemes which helps them to get right scheme which suit their investment needs. In this way it continues to maintain a trust with its clients. DISTRIBUTION COMPANIES Availing of the services of established distribution companies is practice accepted by mutual fund internationally. This practice evolve with a view to provide the huge administrative mechanism require supporting a large agent force. Instead of having to deal with several agents, a fund can interact with distribution a company which has several employees or sub brokers under it.
BANK & NBFCS In developed countries, bank are an important marketing vehicles for mutual funds given that banks themselves had large depositors/ clients base of their own. We can see the opening up of this new channel now in India. Several banks, particularly private and foreign banks are involved in fund distribution by providing services similar to those of distribution companies, on a commission basis. DIRECT MARKETING Direct marketing means that the mutual funds sell their own products without any use of intermediateries. Usually, this takes the form of the sales officer and employees of
the AMC who approach the investor and accept their contribution directly. However in India, independent agents may really be created as a direct marketing channel in a sense that they do not form a well knit independent and organized a single entity and act more like fund employees. Others channel like distribution companies or banks or even stock brokers are clearly distinct and independent intermediaries. PRICING POLICY HDFC Asset Management Company is service Provider Company so there is Entry Load and Exit Load for each scheme. NO 1 2 Scheme name Equity Funds SIP Entry load 2.25% <=5 cr Nil above 5 cr 2.25 % Exit load Nil 1.25% months Thus each scheme has different Entry Load and Exit Load. PROMOTIONAL TOOLS The objective of advertising of HDFC AMC is to create awareness about services and scheme of HDFC among investors and sub-brokers and increase sub-brokers of HDFC AMC. Company does give advertisement in media like Newspapers, and Magazines etc. when in introduce new scheme or mutual fund IPO and through direct marketing they advertise and create awareness about their services and new schemes. HDFC also do presentation about various schemes so that investors can know more about their product and services. Another tool of promotion of HDFC AMC is Public Relation involves a variety of programs designed to promote or protect a companys image or its individual products. HDFC has PR department monitors the attitudes of the organizations publics and distributes information and communications to build goodwill. They also perform following function: Press relation: Presenting news and information about the HDFC AMC in the most positive light.
before
Product publicity: Sponsoring efforts to publicize specific products. Counselling: Advising management abut public issues and company positions and image.
HUMAN RESOURCE DETAILS

HUMAN RESOURCE MANAGEMENT Human Resource Management function that helps managers recruits select, train and develop members for an organization. Obviously, HRM is concerned with the peoples dimension in organizations In all business concerns, there is one common element. I.e. HUMAN RESOURCE. Work force of an Organization is one of the most important inputs of components. It is said that people are our single most important assets. Because of the unique importance of HUMAN RESOURCE and its complexity due to ever changing
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psychology, behaviour and attitudes of men and women at work, personnel function, i.e., manpower management function is becoming increasingly specialized. The personnel function or system can be broadly defined as the management of people at work- management of managers and management of workers. Personnel function is particularly interested in personnel relationship and interaction of employees-human relations. In a sense, management is personnel administration. Management is the development of people, and not mere direction of material resources. Human capital is the greatest asset of a business enterprise. The essential ingredient of management is the leadership and direction of people. Each manager of people has to be his own personnel man. Personnel management is not something you really turn over to personnel department staff. DEFINITIONS According to Edward Flippo Personnel management organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished. Personnel planning are the process by which an organization ensures that is has the right number and kind of people, at right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. MANPOWER PLANNING Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently competing those tasks that will help the organization achieve its overall objectives. Human Resource Planning translates the organizations objectives and plans into the number of workers meet those objectives. Without a clear-cut planning, estimation of an organizations human resource need is reduced to mere guesswork
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Manpower planning is needed with respect to persons who can work as sub-broker for the companies. Companies focus on Advisors of Mutual Fund product and ELSS schemes of HDFC AMC and focused on Insurance Advisor and post office agent, Tax consultants and CAs for making sub-broker. HDFC AMC follows the following process: The first step is forecasting the need of man power in terms of divisions, department or functions. Along with the estimate of the number of the people required in different departments it is also decided that at which level they will be needed. After estimating the man power requirement, next step is to have a look at the current human resource. The current human resource is assessed so as to know whether the requirement can be filled by the existing personnel or not. At last detailed policies for recruitment, selection, training, promotion, retirement, replacement etc. of existing and new employees to meet the forecasted needs is made HDFC is incorporated under the companies Act 1956, December 10, 1999 . (A) CULTURE INTEGRITY Integrity is central flature of HDFC culture and hence HDFC AMC is no exception and the same is expected of the dealings, behaviour and work conduct.
TRUST Based on principal of trusteeship and HDFC AMC recognizes the immense trust placed in it by its shareholders, employees and customers base and strives to live by the standards it has set for itself, the standards that have made it what it is today. INFORMAL WORKPLACE RELATIONSHIP Informality in relationships at the workplace is the core of HDFC AMC culture. Here at HDFC AMC is believed that Human resource is not the domain of the Human Resource Department alone but also superior and hence of every superior juniors share both a professional and personal relationship. The superior is not only the person the junior reports into but is also a guide, advisor and mentor.
COMMITTED, DILLEGENT AND ENTHUSIASTIC HDFC SMC workplace environment is various and infused with enthusiasm and ambition. (B) EMPLOYMENT TERMS EEO EEO is the policy and practice of the company to provide it to all the persons regardless of their religion, caste, creed, gender or other factors. All the employees and applicants receive equal consideration and treatment with respectively to employment, training, promotion, compensation, transfer, layoff, recall, discipline termination and other conditions. MENTORING HDFC AMC understands the constant need of guidance and direction to employees. Every superior acts as a mentor for all employees reporting into him. The mentor acts like a coach provides constructive feedback which helps the subordinates to sheer their career in the right direction.
EXCLUSIVE EMPLOYMENT The employee position is that of full time employed with HDFC AMC. The company strictly prohibits the employees from seeking employment of any nature with any other entity. The employees have to take prior approval from the superior and the Human Resource department before engaging in activities like addressing seminars, teaching etc. and ensure that this official duties do not suffer on this account and no monetary benefit is derived there from. The employee or its relatives should also not be empanelled as an authorized / unauthorized distributor / agent / broker or in any other similar capacity of any entity (including HDFC Mutual Fund) engaged in distribution and selling of financial products.
RECRUITMENT POLICY Recruitment & Selection The upper level members like zonal managers, regional managers, branch managers and senior executives are recruited by publishing recruitment advertisement in leading national level newspaper. The qualified applicant are then called for interview and selected. The regional manager has authority to select lower level employee like peon, marketing executives, financial accountant etc. by approval of zonal manager.
RECRUITMENT PROCESS
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Step 1:Prospecting Identify as many prospective candidates as possible from multiple sources. Step 2:Attracting talent Be prepared to talk passionately about the opportunities of this career.
Step 3:selecting talent Select quality talents through effective interviewing, evaluation & hiring practices.
Step 1: Prospecting It consists of the following steps: Generating leads of potential candidates Contacting the leads and finding out their prima facie interest Step 2: Attracting talent Developing your own recruiting style Developing a resource pool of talent Creating interest in the potential advisor Step 3: Selecting talent Conducting an initial interview Administrating the candidate Final Selection interview is conducted by Managing Director. TRAINING Continuous training and upgrading technical, behavioural and managerial skills is a way of life in HDFC AMC. HDFC AMC encourages agent or sub-broker to hone their skills regularly to enable them to face the challenges of the changing requirements of customers that fit market up and down.
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Training needs analysis is done on a regular basis and systematic methodologies are ensured that skills and capabilities of all agents are constantly upgraded to enable them to perform in the challenging work. There is special training session at regular time period in local branch to all financial consultant and agents about new scheme and to improve their effectiveness. The successful candidates of the AMFI Exam are given the product training. The primary purpose is to become quite conversant with the product that one sells. In other words, product knowledge is very important for any advisor. Product knowledge is not just about knowing the broad terms and conditions of the various schemes of mutual fund. The advisors are explained about the schemes, the terms related with it, the benefits it provides to investor. This training is aimed at making the advisors fully equipped with the companies product information. This training is aimed at making the advisors experts in selling the mutual fund products. This gives the advisors a systematic framework which they can follow so as to attract the customers and be effective in their work. Later the agents are trained on products, need analyses and how to deliver the message to the market. PERFORMANCE APPRAISAL Objective of Performance appraisal if for Developmental uses for agents and financial consultants, for wages, transfer, promotion, for documentation and for organizational purpose like Human Resource Planning, Job analysis and for training and development. For Performance Appraisal modern method is used like MBO (Management by Objectives) and 360 appraisal. But there is some limitation like Hello effect, Bias, Perception factor, Spill over etc.
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FINANCIAL DETAILS
IMPORTANCE OF FINANCE Finance is regarded as the life blood of a business enterprise. This is because in the modern money oriented economy. Finance is the one of the basic foundation of all kind of electronic activity. It is the master key which provides access to the entire source for being employed in manufacturing and merchandizing activities. It has rightly been said the business needs money to make more money. However it is also true that money begets more money, only when it is properly managed. Hence, efficient management of every business enterprise is closely linked with efficient management of its finance. MEANING OF BUSINESS FINANCE In general finance may be defined as the provision of money at the time it is wanted. However, as a management function it has a special meaning. Finance function may be defined as the procurement of funds and their effective utilization. Some of the authoritative definitions are as follows: Business finance is that business activity which is concerned with the acquisition and conservation of capital funds in meeting financial needs and overall objectives of far business enterprise. Business finance can broadly be defined as the activity concerned with planning rising, controlling and administrating of the funds used in the business.
MEANING OF FINANCIAL MANAGEMENT From the various definition of the term business finance given above, it can be conclude that the term business finance mainly involves, rising of funds and their effective utilization keeping in view the overall objectives of the firm. This requires great caution and wisdom on the part of management. The management makes use of
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various financial techniques, devices, etc. For administrating the financial affairs of the firm in the most effective and efficient way. Financial management, therefore, means the entire gamut of managerial efforts devoted to the management of finance both its sources and uses of the enterprise. According to somloman financial management is concerne4d with the efficient use of an important economic resource, namely, capital funds. Phillipppatus has given a more elaborate definition of the term financial management. According to him financial management is concerned with the managerial decisions that result in the acquisition and financing of long-term and short-term credits for the firm. As such it seals with the situations that require selection of specific assets (or combination of assets), the selection of specific liability (or combination of liabilities) as well as the problem of size and growth of an enterprise. The analysis of these decisions is based on the executed inflows and outflow of funds and their effects upon managerial objectives. Thus, financial management is mainly concerned with proper management of funds. The finance manager must see that the funds are procured in a manner that the risk, cost and control consideration are properly balanced in a given situation and there is optimum utilization of funds.
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ACQUISITION OF FUNDS & UTILIZATION OF FUNDS HDFC Asset Management Company is a service sector industry so acquisition of funds is done by introducing various schemes and utilization of fund is done by Fund Manager and fund is invested in market and following is the total AUM (Asset Under Management) and also given % of utilization in equity and debt.
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Assets Under Management (AUM) as at the end of May-2007 (Rs in Lakes) HDFC Mutual Fund Scheme NAV Name AUM Average AUM For The Month Excluding Fund Excluding Fund Fund Of Of Fund Of Of Funds Funds Funds Funds Open Ended HDFC Long Term Advantage Fund formerly HDFC Tax Plan 2000Dividend HDFC Long Term Advantage Fund formerly HDFC Tax Plan 2000-Growth HDFC Balanced Fund-Dividend Plan HDFC Balanced Fund-Growth Plan HDFC Capital Builder Fund-Dividend Plan HDFC Capital Builder Fund-Growth Plan HDFC Cash Management Fund - Call Plan-Daily Dividend Plan HDFC Cash Management Fund - Call Plan-Growth Option HDFC Cash Management Fund Savings Plan-Daily Dividend Option HDFC Cash Management Fund Savings Plan-Growth Option HDFC Cash Management Fund Savings Plan-Weekly Dividend Option HDFC Cash Management Savings Plus - Retail Plan Daily Dividend Option HDFC Cash Management Savings Plus - Retail Plan Monthly Dividend Option HDFC Cash Management Savings Plus - Wholesale Plan Growth Option HDFC Cash Management Savings Plus - Wholesale Plan Monthly Dividend Option HDFC Cash Management Savings Plus - Wholesale Plan Weekly Dividend Option HDFC Cash Management Savings Plus-Dividend Plan HDFC Cash Management Savings Plus-Growth Plan HDFC Children Gift Fund-Investment HDFC Children Gift Fund-Savings HDFC CORE & SATELLITE FUNDHDFC CORE & SATELLITE FUND DIVIDEND 34783.02 35974.95 7773.05 3667.61 49043.36 22335.67 2440.28 10960.22 211371.49 236291.44 72338.61 28396.51 1571 10485.3 1591.1 47239.64 93709.85 12511.15 13302.15 5420.15 34749.45 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 33346.33 34439.6 7747.63 3725.87 48018.84 21982.98 4722.77 17793.46 230866.21 137745.72 67306.86 16489.87 803.74 8530.71 694.14 41867.73 87002.52 10186.66 12913.71 5404.67 36213.87 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2006
Schedule INCOME Management Fee Interest Dividend Other Income EXPENDITURE Staff Expenses Administrative and Other Expenses Depreciation PROFIT/(LOSS) BEFORE TAX Provision for Tax (Net of Deferred
tax)
Previous Year Rupees(2006) Rupees (2005) 12 13 14 15 133,69,74,621 3,19,650 1,82,62,800 84,55,729 136,40,12,800 36,50,46,679 23,01,25,621 3 6,83,28,410 66,35,00,710 70,05,12,090 24,22,38,100 35,10,000 45,47,63,990 5,27,67,278 50,75,31,268 4,54,76,399 2,50,00,000 35,06,250 8,80,63,500 1,23,50,906 8,80,63,500 1,23,50,906 23,27,19,807 16.94 96,50,56,908 2,71,503 1,65,99,156 2,65,85,358 100,85,12,925 19,12,96,703 25,73,13,844 6,65,90,054 51,52,00,601 49,33,12,324 17,71,68,866 31,61,43,458 20,89,58,430 52,51,01,888 21,72,933 3,16,14,346 25,00,00,000 3,96,57,535 51,82,745 2,57,900 12,58,05,000 1,76,44,151 5,27,67,278 10.78
Provision for Fringe Benefit Tax PROFIT/(LOSS) AFTER TAX Balance brought forward from Previous year Profit Available for Appropriation Appropriations: Short provision of Income Tax for earlier years (net) General Reserve Capital Redemption Reserve Preference Dividend Tax on Preference Dividend Education Cass on Equity Dividend (FY 2003 - 04) Interim Equity Dividend Paid Tax on Interim Equity Dividend Paid Proposed Equity Dividend Tax on Proposed Equity Dividend Balance carried forward to the Balance Sheet Earnings Per Share
BALANCE SHEET AS ON MARCH 31, 2006

Schedule March 31, 2005
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Rupees Rupees(2006) FUNDS EMPLOYED SHAREHOLDERS FUNDS Share Capital Reserves and Surplus APPLICATION OF FUNDS FIXED ASSETS 3 Gross Block Less: Depreciation Net Block Capital Advances INVESTMENTS DEFERRED TAX ASSET CURRENT ASSETS, LOANS AND ADVANCES Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: CURRENT LIABILITIES AND PROVISIONS Current Liabilities Provisions 10 11 19,97,83,840 64,43,35,366 84,41,19,206 NET CURRENT ASSETS 4 5 1 2 50,16,10,000 59,54,32,963 109,70,42,963 81,70,23,962 19,28,39,455 62,41,84,507 3,25,993 63,05,10,500 51,36,82,426 4,64,76,435
Rupees(2005) 50,16,10,000 37,00,04,035 87,16,14,035 79,49,92,631 12,62,51,492 66,87,41,139 11,15,856 66,98,56,995 33,26,90,199 1,24,04,535
6 7 8 9
5,94,48,534 1,14,77,426 6,027 67,95,60,821 75,04,92,808
2,42,20,249 1,01,93,726 4,823 31,47,04,320 34,91,23,118
17,39,08,663 31,85,52,149 49,24,60,812 (9,36,26,398) (1433,37,694) 109,70,42,963 87,16,14,035
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2006
Rupees(2006) A. CASH FLOW FROM OPERATING ACTIVITIES
Rupees(2005)
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Profit before taxation and extraordinary items Add / (Less) : Adjustment for Depreciation Profit on sale of investment (net) (Profit) / Loss on sale of fixed assets (net) Investment Income (dividend) Provision for wealth tax Operating Profit before working capital changes (Increase) / Decrease in Loans and Advances (Increase) / Decrease in Other Current Assets (Increase) / Decrease in Sundry Debtors Increase / (Decrease) in Current Liabilities Cash generated from Operations Income tax paid Net cash from operating activities B. CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets Proceeds from sale of fixed assets Purchase of investments Proceeds from sale of investments Net cash used in investing activities
C.
70,05,12,090 6,83,28,410 (16,81,892) (3,62,004) (1,82,62,800) 75,472 74,86,09,276 (9,21,49,302) (1,204) (3,52,28,285) 11,83,75,177 73,96,05,662 (27,62,84,709) 46,33,20,953
49,33,12,324 6,65,90,054 (1,00,75,602) (10,48,315) (1,65,99,156) 62,998 53,22,42,303 (1,32,43,781) 2,349 (83,46,683) 71,39,908 51,77,94,096 (16,24,85,230) 35,53,08,866
(2,91,99,454) (4,58,05,383) 5,79,543 17,42,848 (48,14,67,068) (118,75,61,739) 132,04,19,533 128,67,69,273 (18,96,67,446) 5,51,44,999
CASH FLOW FROM FINANCING (23,88,68,500) (3,35,01,307) (27,23,69,807) 12,83,700 1,01,93,726 1,14,77,426 12,83,700 (25,00,00,000) (14,03,01,535) (1,83,35,658) (40,86,37,193) 18,16,672 83,77,054 1,01,93,726 18,16,672
ACTIVITIES Share Capital - Preference Dividend paid Tax paid on Dividend Net cash from financing activities Net Increase / (Decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the yea Cash and cash equivalents at the end of the year
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RATIO ANALYSIS
Name N. P. Ratio Current Ratio Return on investment Earning per share (EPS)
Formula Net profit/ Sales * 100 Current assets / current Liabilities Net profit / Total invt * 100 Profit available to equity shareholder / No. Of equity
2005 50.24 % 0.71: 1 56.59 % 10.78
2006 51.38% 0.70:1 58.70% 16.94
Note: In absence of any information about sales we have calculated N. P. ratio based on their main income
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PART D DIFFERENT SCHEMES OF HDFC MUTUAL FUND
EQUITY SCHEMES
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1. HDFC GROWTH FUND Investment objective The primary investment objective of the Scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. Basic Scheme Information Nature of Scheme Inception Date Option/Plan Entry Load. (as a % of the Applicable NAV) Open Ended Growth Scheme Sep 11, 2000 Dividend Option, Growth Option, -In respect of each purchase / switch-in of Units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable. -In respect of each purchase / switch-in of Units equal to or great than Rs. 5 crore Exit Load. (as a % of the Applicable NAV) Minimum Application Amount in value, no Entry Load is payable. Nil Rs.5000 and in multiples of Rs.100 thereof to open an account / folio. Additional purchases is Rs. 1000 and in Lock-In-Period Net Asset Value Periodicity Redemption Proceeds multiples of Rs. 100 thereof Nil Every Business Day Normally despatched within 3 Business days Investment pattern The corpus of the Scheme will be invested primarily in equity and equity related instruments. The Scheme may invest a part of its corpus in debt and money market instruments, in order to manage its liquidity requirements from time to time, and under certain circumstances, to protect the interests of the Unit holders. The asset allocation under the Scheme will be as follows : SR NO. TYPE OF INSTRUMENTS NORMAL ALLOCATION (%of net asset) RISK PROFILE
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1 2
Equities & Equities related instruments Debt securities, money market instruments & cash
80-100 0-100
Medium to high Low to medium
Investment Strategy & Risk Control The investment approach will be based on a set of well established but flexible principles that emphasise the concept of sustainable economic earnings and cash return on investment as the means of valuation of companies. In summary, the Investment Strategy is expected to be a function of extensive research and based on data and reasoning, rather than current fashion and emotion. The objective will be to identify "businesses with superior growth prospects and good management, at a reasonable price". Benchmark Index : SENSEX Fund Manager : Mr. Shrinivas Rao 2. HDFC EQUITY FUND Investment Objective The investment objective of the Scheme is to achieve capital appreciation. Basic Scheme Information Nature of Scheme Inception Date Option/Plan Entry Load. (as a % of the Applicable NAV) Open Ended Growth Scheme Jan 01, 1995 Dividend Option, Growth Option, In respect of each purchase / switchin of Units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable. In respect of each purchase / switchin of Units equal to or great than Rs. 5 Exit Load. (as a % of the Applicable NAV) Minimum Application Amount crore in value, no Entry Load is payable. Nil Rs.5000 and in multiples of Rs.100 thereof to open an account / folio.
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Additional purchases is Rs. 1000 and in Lock-In-Period Net Asset Value Periodicity Redemption Proceeds multiples of Rs. 100 thereof Nil Every Business Day Normally despatched within 3 Business days Investment Pattern The asset allocation under the Scheme will be as follows: SR NO. TYPE OF INSTRUMENTS NORMAL ALLOCATION 1 2 Equities & Equities related instruments Debt securities, money market (%of net asset) 80-100 0-100 RISK PROFILE Medium to high Low to medium
instruments & cash Investment in Securitised debt, if undertaken, would not exceed 20% of the net assets of the scheme. The Scheme may also invest upto 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. Investment Strategy & Risk Control In order to provide long term capital appreciation, the Scheme will invest predominantly in growth companies. Companies selected under this portfolio would as far as practicable consist of medium to large sized companies which: are likely achieved above average growth than the industry; enjoy distinct competitive advantages, and have superior financial strengths. 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. Benchmark Index : S&P CNX 500. HDFC Equity, which is benchmarked to S&P CNX 500 Index is not sponsored, endorsed, sold or promoted by Indian Index Service & Products Limited (IISL). Fund Manager : Mr. Prashant Jain
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3. HDFC TAXSAVER Investment Objective The investment objective of the Scheme is to achieve long term growth of capital. Basic Scheme Information Nature of Scheme Inception Date Option/Plan Entry Load. (as a % of the Applicable NAV) Open Ended Equity Linked Saving Scheme Mar 31, 1996 Dividend Option, Growth Option, In respect of each purchase / switchin of Units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable. In respect of each purchase / switchin of Units equal to or great than Rs. 5 Exit Load. (as a % of the Applicable NAV) Minimum Application Amount Lock-In-Period Net Asset Value Periodicity Redemption Proceeds Investment Pattern The asset allocation under the Scheme will be as follows: SR NO. 1 2 ASSET TYPE Equities & Equities related instruments Debt securities, money market instruments & cash Investment in Securitized debt, if undertaken, would not exceed 20% of the net assets of the scheme. 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 (% OF PORTFOLIO) Minimum 80% Minimum 20% RISK PROFILE Medium to high Low to medium crore in value, no Entry Load is payable. Nil Rs.5000 and in multiples of Rs.100 thereof to open an account / folio. 3 yrs Every Business Day Normally despatched within 3 Business days
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introduced from time to time for the purpose of hedging and portfolio balancing and and other uses as may be permitted under the regulations and guidelines. 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. The ELSS (Equity Linked Savings Scheme) guidelines, as applicable, would be adhered to in the management of this Fund. If the investment in equities and related instruments falls below 80% of the portfolio of the Scheme at any point in time, it would be endeavoured to review and rebalance the composition. Benchmark Index : S&P CNX 500. HDFC Tax saver, which is benchmarked to S&P CNX 500 Index is not sponsored, endorsed, sold or promoted by Indian Index Service & Products Limited (IISL). Fund Manager : Dhawal Mehta
4. HDFC TOP 200 FUND Investment Objective The investment objective is to generate long term capital appreciation from a portfolio of equity and equity linked instruments. The investment portfolio for equity and equity linked instruments will be primarily drawn from the companies in the BSE 200 Index. Further, the Scheme may also invest in listed companies that would qualify to be in the top 200 by market capitalisation on the BSE even though they may not be listed on the BSE This includes participation in large IPOs where in the market capitalisation of the company based on issue price would make the company a part of the top 200 companies listed on the BSE based on market capitalisation. Basic Scheme Information Nature of Scheme Open Ended Equity Growth Scheme
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Inception Date Option/Plan Entry Load. (as a % of the Applicable NAV)
Oct 11, 1996 Dividend Option, Growth Option, In respect of each purchase / switchin of Units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable. In respect of each purchase / switchin of Units equal to or great than Rs. 5 crore in value, no Entry Load is payable.
Exit Load. Minimum Application Amount
Nil Rs.5000 and in multiples of Rs.100 thereof to open an account / folio. Additional purchases is Rs. 1000 and in multiples of Rs. 100 thereof.
Lock-In-Period
Nil
Investment Pattern The asset allocation under the Scheme will be as follows: SR NO. 1 ASSET TYPE Equities & Equities related instruments (% OF PORTFOLIO) Upto 100% (including use of derivatives for hedging and other uses as permitted by prevailing SEBI 2 Debt securities, money market instruments & Regulations) Balance in Debt & Money Market Instruments Low to medium RISK PROFILE Medium to high
cash Investment in Securitised debt, if undertaken, would not exceed 20% of the net assets of the scheme. The Scheme may also invest upto 25% of net assets of the Scheme in derivatives such as Futures & Options and such other derivative instruments as may
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be introduced from time to time for the purpose of hedging and portfolio balancing and other uses as may be permitted under the regulations and guidelines. Investment Strategy & Risk Control The investment strategy of primarily restricting the equity portfolio to the BSE 200 Index scrips is intended to reduce risks while maintaining steady growth. Stock specific risk will be minimised by investing only in those companies / industries that have been thoroughly researched by the investment manager's research team. Risk will also be reduced through a diversification of the portfolio. Benchmark Index : BSE 200 Fund Manager : Mr. Prashant Jain 5. HDFC MID-CAP OPPORTUNITIES FUND Investment Objective To generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of Small and Mid-Cap companies. Basic Scheme Information Nature of Scheme Inception Date Option/Plan Entry Load (as a % of the Applicable NAV) Exit Load (as a % of the Applicable NAV Minimum Application Amount Lock-In-Period Net Asset Value Periodicity Redemption Proceeds Investment Pattern The asset allocation under the Scheme will be as follows: SR NO. ASSET TYPE (% OF PORTFOLO)
Close Ended Equity Scheme May 07, 2007 Growth Option. Dividend Option (with Payout Facility only). Nil
Nil
Rs.5000 and in multiples of Re.1000 thereafter Nil Every Business Day Within 10 working days.
RISK PROFILE
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1 2 3
Equities & Equities related instruments Debt securities, money market instruments & cash Equity and equity related securities of Small and Mid-Cap companies of which Small-Cap companies Mid-Cap companies
Upto 100% Not more than 25% 100 % 15 % 95 %
HIGH Low to medium HIGH
The Investment in Securitised Debt will not normally exceed 25% of the net assets of the Scheme.
The Scheme may seek investment opportunity in the ADR / GDR / Foreign Equity and Debt Securities (max. 25% of net assets). The Scheme may take derivatives position for hedging and portfolio balancing (max. 20% of the net assets) based on the opportunities available subject to SEBI Regulations. Fund Manager MR. CHIRAG SATELVAD MR. ANAND LADDHA BALANCED SCHEMES 1. HDFC BALANCED FUND Investment Objective The primary objective of the Scheme is to generate capital appreciation along with current income from a combined portfolio of equity and equity related and debt and money market instruments. Basic Scheme Information Nature of Scheme Inception Date Option/Plan Entry Load. (as a % of the Applicable NAV) Open Ended balanced Scheme Sep 11, 2000 Dividend Option, Growth Option, In respect of each purchase / switchin of Units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable. In respect of each purchase / switchin of Units equal to or great than Rs. 5
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Exit Load. Minimum Application Amount
crore in value, no Entry Load is payable. Nil Rs.5000 and in multiples of Rs.100 thereof to open an account / folio. Additional purchases is Rs. 1000 and in multiples of Rs. 100 thereof. Nil Every Business Day
Lock-In-Period Net Asset Value Periodicity
Investment Pattern The Scheme will be invested in equity and equity related instruments as well as in debt and in money market instruments in normal circumstances. The following table provides the asset allocation of the Schemes portfolio. The asset allocation under the Scheme will be as follows: SR NO. 1. TYPE OF INSTRUMENT Equity & Equity related 2. instruments Debt securities & Money Market instruments) Investment Strategy & Risk Control The balanced product is positioned as a lower risk alternative to a pure equities scheme, while retaining some of the upside potential from equities exposure. The Scheme provides the Investment Manager with the flexibility to shift allocations in the event of a change in view regarding an asset class. Asset allocation between equities and debt is a critical function in a balanced fund. It is proposed to continuously monitor the potential for both debt and equities to arrive at a dynamic allocation between the asset classes. 40 20 Normal Allocation (% of Net Assets) 60 Normal Deviation (% of Normal Allocation) 20 RISK PROF ILE Mediu m to high Low to mediu m
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The equity and debt portfolios of the Scheme would be managed as per the respective investment strategies detailed herein. The investment approach would be based on the concept of economic earning power and cash return on investments Risk control The overall portfolio structure would aim to maintain risk at a moderate level. The Fund Manager would avoid adopting either a very defensive or aggressive posture at any point in time. Risk will also be controlled through portfolio diversification and a conscious focus on maintaining adequate levels of liquidity at all points in time. Macro economic risk will be addressed through a constant review of the business and economic environment. The AMC may from time to time, review and modify the Schemes? Investment strategy if such changes are considered to be in the best interest of Unit holders and appropriate to the existing market situation. Investments in securities and instruments not specifically mentioned earlier may also be made, provided they are permitted by SEBI Regulations. Benchmark Index : CRISIL Balanced Fund Index Fund Manager : Mr. Tushar Pradhan 2. HDFC PRUDENCE FUND Investment Objective The investment objective of the Scheme is to provide periodic returns and capital appreciation over a long period of time, from a judicious mix of equity and debt investments, with the aim to prevent/ minimise any capital erosion. Under normal circumstances, it is envisaged that the debt : equity mix would vary between 60:40 and 40:60 respectively. This mix is geared to achieve the investment objective and is expected to result in regular income, capital appreciation and also prevent capital erosion. Basic Scheme Information Nature of Scheme Inception Date Option/Plan Entry Load. (as a % of the Applicable NAV) Open Ended balanced Scheme Feb 01, 1994 Dividend Option, Growth Option, In respect of each purchase / switchin of Units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable. In respect of each purchase / switch-
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in of Units equal to or great than Rs. 5 Exit Load. (as a % of the Applicable NAV) crore in value, no Entry Load is payable. In Respect of each purchase/ switch in an Exit load of 1% is payable if Units are redeemed / switched out within 1 year Minimum Application Amount from the date of allotment. Rs.5000 and in multiples of Rs.100 thereof to open an account / folio. Additional purchases is Rs. 1000 and in Lock-In-Period Net Asset Value Periodicity Redemption Proceeds Investment Pattern The asset allocation under the Scheme will be as follows: SR NO. 1 2 ASSET TYPE Equities & Equities related instruments Debt securities, money (% OF PORTFOLIO) Upto 100% Not more than RISK PROFILE Medium to high Low to medium multiples of Rs. 100 thereof. Nil Every Business Day Normally despatched within 3 Business days
market instruments & cash 20% Investment in Securitised debt, if undertaken, would not exceed 10% of the net assets of the scheme. In such times when the interest rates are high, investment in debt would be more attractive versus equities and accordingly the Fund is likely to increase the debt component in the Scheme's portfolio. Similarly in times when the interest rates are low and the equity valuations are cheap, the Scheme is likely to reduce exposure to debt and increase exposure to equities. In addition to debt and equities the scheme will also invest in money market instruments. The exact proportion in money market instruments will be a function of the liquidity needs and the attractiveness of the debt/ equity markets. At times when neither the debt market nor equities are attractive for investment, more resources may be temporarily invested in money market investments to be invested in debt/ equities at a more appropriate time. Investment Strategy & Risk Control As outlined above, the investments in the Scheme will comprise both debt and equities. The Fund would invest in Debt instruments such as Government securities,
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money market instruments, securitised debts, corporate debentures and bonds, preference shares, quasi Government bonds, and in equity shares Benchmark Index : CRISIL Balanced Fund Index Fund Manager : Mr. Prashant Jain SWOT ANALYSIS STRENGTH Good Brand Name of the company in all over India. Flexible products Expertise in the field of mutual fund Sound financial resources of the company as well as sponsors. Strong Communication Network all over the country. WEAKNESS Less awareness regarding mutual fund among investors Yet to build strong distribution network Cannot tap rural market OPPORTUNITIES: Untapped rural market Lack of competitive products to suit clients investment objective THREAT The numbers of players are increasing which further increases the competition. Product Innovation done by other Asset Management companies and is able to collect large amounts. Customer mindsets are still rigid and they mostly prefer traditional pattern of investments.
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CONCLUSION
This report is prepared to get the basic ideas of mutual fund and various schemes of HDFC. The general concept of the market study will help the different individuals to invest in different investment tools as per their appetite. Through research study, it is very much visualized the present market trend opted by the selected number of people and their perception regarding Mutual Fund. Hence, from this report I conclude that people are more keen to invest in Mutual Fund due to the stability and getting more diversified options.
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GLOSSARY
SHORT FORMS AMC AMFI AUM BSE FII GILT IPO IRP MIP MTM NAR NAV NSE OD Asset Management Company Association of Mutual Fund of India Asset under Management Bombay Stock Exchange Foreign Institute of Investor. FII can invest in Mutual Funds. Government of India Linked Treasury. These Initial Public Offer Investor Risk Profile Monthly Investment Plan Market to Market Net Amount at Risk Net Asset Value National Stock Exchange Offer Document is the most important source of information
They invest through the Non-resident rupee account. Funds are those that invest only in government securities.
for the investors. Abridged version of the OD is called as Key Information Memorandum (KIM). PAR VALUE SAR SIP SWP WDM It is said as face value. Sum at Risk Systematic Investment Plan Systematic Withdrawal Plan wholesale Debt Market
81
BIBLIOGRAPHY
BOOKS Marketing Management - Philip Kotler Personnel Management MAGAZINES Business Standard Newspaper Business world Mutual Fund Insight WEBSITES www.google.com www.hdfcfund.com www.amphiindia.com www.moneycontrol.com www.sebi.gov.in http://www.amfiindia.com/showhtml.asp?page=mfconcept http://www.amfiindia.com/showhtml.asp?page=mfindustry http://www.sebi.gov.in/Index.jsp?contentDisp=Department&dep_id=4 http://shell.windows.com/fileassoc/0409/xml/redir.asp?Ext=pdf http://www.amfiindia.com/showhtml.asp?page=aum http://www.hdfcfund.com/products/schemeShow.jsp?schemeId=342&fundID=1 http://www.hdfcfund.com/products/schemeShow.jsp?schemeId=342&fundID=1 http://www.hdfcfund.com/aboutus/index.jsp - C.B.Memoria
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http://www.hdfcfund.com/fundschool/index.jsp http://www.hdfcfund.com/navcorner/index.jsp http://www.hdfcfund.com/news/index.jsp http://www.hdfcfund.com/download/sebiCirculatShow.jsp http://www.amfiindia.com/pu-showfundwiseaum.asp?admin=yn http://www.amfiindia.com/accounts_halfyearly.asp http://www.amfiindia.com/showhtml.asp?page=sitemap http://www.amfiindia.com/accounts_annual.asp http://www.moneycontrol.com/mutualfundindia/ http://www.moneycontrol.com/india/mutualfunds/bestmfipo/15/30/bestmutualfundIP Omf http://www.moneycontrol.com/planning_desk/understandingmf.php?step1=1 http://www.moneycontrol.com/india/mutualfunds/comparefunds/15/30/mf_compare/ All http://www.hdfcfund.com/products/schemeShow.jsp?schemeId=342&fundID=1 http://www.hdfcfund.com/products/schemeShow.jsp?schemeId=3&fundID=2 http://www.moneycontrol.com/easymf/learn/ http://www.moneycontrol.com/planning_desk/understandingmf.php?step1=1
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SUGGESTIONS
1. An aggressive advertising campaigning should be there to encourage more people to invest.
2.
As some of the people think that mutual fund is risky so the company should show people the advantages of the mutual fund and how it is better than the other investment avenues.
3. There is a great potential for the mutual fund because the people are ready to invest in the mutual fund as there is a positive responses. 4. Now a days people are investing in more of an equity fund because it gives high return as compare to other mutual fund schemes. 5. People are preferred to invest in the long term savings when only they have enough of surplus. They are least concerned about the others advice. 6. The people of Rajkot have enough purchasing power supported by N.R.I. Mutual Fund Companies should take this fact positively at the time of designing promotional scheme. 7. HDFC MF is doing comparatively very less marketing in MF industry in compare to other players. Due to this other player are getting the advantage. Thus it should try to increase the marketing and advertising related activities time to time or at least at the time of new NFOs, at the time when they are declaring dividends or at the peak time (i.e. January - March) last quarter of financial year when people are searching for investing instruments.
8.
A very small part market has been cover by HDFC MF. It can increase the circle of its business in small and rural areas of every state and cities of India where they an find a huge business.
9.
To uproot the investment level the company should give training programme to financial agents who approach the investor for the investments. And they should be aware of all the benefits of the mutual Funds.
84
10.
Company should undertake the Campaign, Road shows, Advertisement and other type of Publicity for the effective awareness of different schemes that are available in the market.
11.
The company should arrange seminars and presentations, giving detail idea about securities and benefits of investment in mutual fund.
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SUMMER TRAINNING PROJECT REPORT ON

GENERAL STUDY OF HDFC MUTUAL FUND

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

Date: Place: RAJKOT (NASIT VISHAL N.)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

PART A INDUSTRY OVERVIEW

SHORT HISTORY OF MUTUAL FUNDS

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

THE CONCEPT OF MUTUAL FUND IN DETAIL

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

(Source: Mutual Fund Review, Dec. 2003)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

Capital Appreciati on High Negligible

Convenie nce High High

Low High Moderate Nil Nil Low Nil

High Low Nil High Moderate High Moderate

High Low Negligible Nil Nil Negligible Average

High High High Average Average Low Average

The burden of intelligent choice therefore rests on

TYPES OF MUTUAL FUNDS

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

ORGANISATION OF MUTUAL FUND

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

PHASES OF MUTUAL FUND INDUSTRY

Phases of Mutual Fund Industry in India

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

The graph indicates the growth of assets over the years.

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

THE WAY & TYPE TO INVEST IN MUTUAL FUND

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

LEGAL FRAME WORK OF SEBI & AMFI

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

REGULATORY OF MUTUAL FUND IN INDIA

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

BENEFITS OF MUTUAL FUND

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

MUTUAL FUND PLAYER IN INDIA

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

2536497.59 31101.51 3388820.86 1350481 4599486.19 0 0 3870.1

426654.38 83156.41 350488.13 0 N/A N/A

1454533.63 52628.06 969282.55 280596.17 310005.39 0 0 0

R. K. COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

1089590.26 6015.5 5763304.33 17316.89

1952036.51 0 1583682.27 1579.72 899695.06 1345348.07 30198.75 3677723.39 38619604.4 0 0 0 0 214668

MAN WITH A MISSION

Hasmukhbhai Founder Chairmanof earthly

HDFC Group who this

of India in the year 1992.

ABOUT COMPANY HDFC