A STUDY OF THE PRECEPTION OF INVESTORS OF HDFC MUTUAL FUND IN DELHI

Submitted in the partial fulfillment of the requirement of Degree of Master of Business Administration from Guru Gobind Singh Indraprastha University, Delhi (2010-2012)

BY: LAXMAN SINGH Class of 2010

ARMY INSTITUTE OF MANAGEMENT AND TECHNOLOGY GREATER NOIDA-201306

AUGUST 2011

ACKNOWLEDGEMENT
As we move towards building our careers, there are numerous challenges that we encounter on our path. Therefore I would like to take this opportunity, to thank those who have given me their invaluable support to make this research project a reality. Firstly, I would like to thank HDFC AMC, New Delhi for providing me an opportunity to train with them and to expose me to the challenging aspects of HDFC AMC LIMITED company. I would like to express my gratitude to Mr. VIKRAM SHARMA,Sales and distribution - Manager for her support and guidance. He has been an inspirational mentor and helped instill a great deal of self-confidence in me to achieve my goal. I would like to thank Army Institute of Management & Technology, Greater Noida for giving me an opportunity to undergo an Industry Internship and bring out the best in me. I deeply express my gratitude to Mr. Sanjeev Tandon, my faculty guide and mentor. I am indebted to him for his invaluable advice and insights in giving my project a direction and also for his encouraging guidance as a mentor. Although success is a result of ones hard work and determination, it cannot be achieved without the advice, support and encouragement of my friends and family. I thank them all for their co-operation.

LAXMAN SINGH MBA-07

Certificate of Originality
I ____________________________________________ Roll no__________________of 2010, a full time bonafide student of first year of Master of Business Administration (MBA) Programme of Army Institute of Management & Technology, Greater Noida. I hereby certify that this project work carried out by me at

____________________________________________________________ the report submitted in partial fulfillment of the requirements of the programme is an original work of mine under the guidance of the industry mentor____________________________________________________________ and faculty

mentor_____________________________________________________ and is not based or reproduced from any existing work of any other person or on any earlier work undertaken at any other time or for any other purpose, and has not been submitted anywhere else at any time.

(Student's Signature) Date: July --, 2011

(Faculty Mentors Signature) Date:july 01,2011

Executive Summary
HDFC Mutual Fund was setup on June 30, 2000 with two sponsors namely Housing Development Finance Corporation Limited and Standard Life Investments Limited. The Trustee Company of HDFC Mutual Fund is HDFC Trustee Company Limited and AMC is HDFC Asset Management Company Limited, incorporated with the SEBI on December 10, 1999. It is one of the largest mutual funds and well-established fund house in the country with consistent and above average fund performance across categories since its incorporation on December 10, 1999. Report focuses on the observations and analysis of the investor buying behavior with respect to the purchase of mutual funds. The research project was carried out at the HDFC Asset Management Company for my summer internship program. To perform operations, I had been allotted HDFC Branch at (BARAKAMBHA), HDFC Branch at (SOUTH DELHI), HDFC Branch at (RAJANDER PLACE) by the AMC. The research begins from examining the objective and bringing it down to a few major factors which play a key role in the purchase of mutual funds. An attempt has been made to recognize the clients perspective in terms of his risk appetite, extent of guidance, knowledge about the product, other investment avenues etc. The types of information took account of peoples knowledge, their perception about investments, mutual funds, & HDFCetc.

The size of the Mutual Fund market in India is quite significant. The huge potential of this market can certainly benefit the investors through professional expertise & consistent returns and also generate enhanced business for HDFC MUTUAL FUND in the process. The investment environment is becoming increasingly complex. Innumerable parameters need to be factored in to generate a clear understanding of market movement and performance in the year and long term future. The basic purpose here is finding an opportunity, designing an approach and checking for its financial viability. Analyzing the HDFC-Mutual Fund schemes, formulation of questionnaire etc is the first step followed. Fundamental analysis of three best performing schemes of HDFC-M.F has been done. Then the thorough analysis is made on the basis of response attained with the help of the questionnaire designed. Then, the respondents were categorized on the basis of Age, Gender and Occupation and findings were made on the basis of that categorization.

Table of contents
Acknowledgementii Certificate of Originality...iii Certificate from industry mentoriv Executive Summaryv Sr.No. 1 2 TOPIC Objective of the study Chapter 2 2.1. Meaning of Mutual fund 2.2. History of the Indian mutual fund 2.3. Categories of mutual fund 2.4. Investment strategies 2.5 Risk vs return 2.7 Mutual fund terms 2.8 why to invest in MF 2.9 Reach of HDFC AMC 2.10 Vision Statement 2.11 Frame work of HDFC MF 2.11.1 Fund management team 2.12 HDFC products 2.13 An industry competition and analysis Page No 1

2 5 6 8 9 11 12 13 16 17 18 19 22

3 Chapter 3 3.1 Research Methodology 3.2 Data Analysis & Interpretation 3.3 Finding 25 27 46

Chapter 4 Conclusion References Questionnaire

47 49 50

LIST OF FIGURES

Figure No. Figure 1. Figure2. Figure 3 Categories of mutual fund Risk and Return Framework of HDFC AMC

Figure description

Page No. 13 16 24