HDFC Operations Management

HDFC MUTUAL FUND
(HDFC ASSETS MANAGEMENT COMPANY

LTD)
IN PARTIAL FULFILLMENT OF
MASTER OF BUSINESS ADMINISTRATION
PROGRAMME
SUBMITTED BY: GUIDED BY:
BADAMI KALPESH. D. INTERNAL GUIDE AT GRIMS
DR.R.S.SHAH
EXTERNAL GUIDE AT CO.
MR.RAJAN MEHTA
GIDC RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT
STUDIES, VAPI
SUMMER TRAINING PROJECT (200)
1
DECLARATION
I, Badami Kalpesh D. a student of MBA semester iii, here by declare that the project
work presented in this report is my contribution and has been carried out under
superision of DI!"#$%! DR.R.S.SHAH of GIDC RAJJU SHROFF
INSTITUTE OF MANAGEMENT STUDIES.
$he objectie of the trainin& undertaken is to &et speciali'ed knowled&e in the
speciali'ed field, which further sharpen the skill and add practicality in the
speciali'ation. $his work has not been preiously submitted to any other uniersity
for any other e(amination
DA$") * SIGNATURE (student+
BADAMI KA,-"./ D.

-,A#") * SIGNATURE (guide)
D!.!..../A/

0
PREFACE
1"(perience is the best teacher.2 $his sayin& is ery well applicable in eeryone3s
life. $herefore as a student of mana&ement it must apply to me also. $hen the
4uestion arises that from where we can &et this e(perience. %biously we must
under&o practical $rainin&. $o sere this purpose I had under&one two months
summer trainin& at /D5# assets Mana&ement #ompany limited and as an outcome I
hae prepared this project report.
$his project report on 1mutual fund awareness in retail inestors of /D5# assets
Mana&ement #ompany in .urat2 is as per syllabus prescribed by 6eer 7armad south
8ujarat 9niersity for MBA students. $his project also deals with arious actiities of
/D5# assets Mana&ement #ompany limited. $he e(perience of this trainin& will be
useful in my future and findin&s of this particular project will be /elpful to take
decision re&ardin& to marketin& and adertisin& of mutual fund schemes $o /D5#
assets Mana&ement #ompany limited.
:
ACKNO!LEDGEMENT
5irst of all, I would like to e(press my sincere &ratitude to Mr. !ajan Mehta, Branch
mana&er of /D5# assets Mana&ement #ompany limited, .urat branch for allowin&
me for summer trainin& at /D5# assets Mana&ement #ompany limited.
I heartily feel thanks to Mr. -iyush lal, sales e(ecutie who proided me aluable
su&&estions and &uidance at eery sta&e of my summer trainin&.
I would also like to e(press my &ratitude to Mr. !.s.shah, my project mentor and other
faculty members of 8ID# !A;;9 ./!%55 !%5", I7.$I$9$" %5
MA7A8"M"7$ .$9DI"., api for &uide me.
I would like to thank followin& persons who help me a lot in my summer trainin&.
Mr. 8aura maheshwari, /D5# assets Mana&ement #ompany limited
Mr. -inkal shah, /D5# assets Mana&ement #ompany limited.
Mr. #hintan patel, /D5# assets Mana&ement #ompany limited.
Mr. !itesh jariwala, /D5# assets Mana&ement #ompany limited.
Mr. 9tkrash &heewala, /D5# bank, -arle point branch
Mr. 7ilesh patel, /D5# bank, -arle point branch.
Mr. Mitesh sampat, /D5# bank, -arle point branch.
I also thank to respondents, who hae been helpful and faithful enou&h to &ie the
re4uired information, which helped my project to be a &reat success, which was the
main and important part of my project. I feel happy indeed and it has &ien me a lot of
pleasure in company.
,ast but not the least I would like to e(tent my deep sense of &ratitude to my family,
friends and all whom &uided and helped me durin& my trainin& period.
-lace) * .urat. Badami Kalpesh. B.
Date) * <
th
Au&ust 0==>
?
O"#$%&'($) *+ S&,-.
@ithout any aim or objectie, no actiity can e(ist, in the same direction of
preparation of this report on /D5# assets Mana&ement #ompany limited. In different
functional areas A research on the 1mutual fund awareness in retail inestors of
/D5# assets Mana&ement #ompany limited in .urat2 is based on the followin&
objecties) *
1. My primary objectie is to ac4uire primary functions of mana&ement like
-lannin&, %r&ani'in&, Directin& and controllin& from arious functional areas
such as 5inance, /uman !esource, Marketin&, and .ales etc.
0. @hateer we are tau&ht in the classrooms, there is a limitation that book can
only &ie theoretical concept or knowled&e and it has a limited iew of
practically. .o, the other important objectie of this trainin& is to know about
practical aspect and to know how a company actually works in practical
situation.
:. $o know the mutual fund awareness leel of the retail inestors who are inest
in /D5# assets Mana&ement #ompany limited.
B
L'/'&0&'*1) *+ S&,-.
$here is no actiity without any limitations.
1. $hou&h eery one used to be ery co*operatie but eery detail was unable to
be disclosed to me as the officials has to maintain secrets of the company.
0. It is difficult to coer all the function of the company.
:. $he analysis and conclusion made by me as per my limited understandin& and
there may be somethin& ariation in the actual situation.
?. Because of the limited time period, the surey work was conducted in the
.urat re&ion and the sample si'e was taken as 1== respondents only.
B. In this rapidly chan&in& turbulent era the su&&estions and recommendations
drawn out today mi&ht proe inade4uate or improper tomorrowC this is likely
to limit its effectieness.
D
EXECUTIVE
SUMMARY
>
Executive Summary
$he entire report is an unfor&ettable journey of support, knowled&e, e(perience,
dedication, perfection, and patience. 5or me it is all about to understand a customer
and market of mutual fund industry.
$he report is specially oriented to particular area, thou&h it is representin& the stron&
base of Inestment mana&ement*which coers different inestment aenues, their
handlin& contribution, strate&y, portfolios, and related risk factors. Mutual funds* how
they are formed, history, scenario, types, trends, myths, distribution, adanta&es, and
een disadanta&es of them.
$ips to effectiely sell the mutual funds, to be effectie a&ent, some do3s and don3ts
about mutual funds while inestin&. #ompany details and its pro&ress and its
interpretation base for analysis, conclusion, findin&s, and 4uestionnaire, which helped
a lot in consumer, surey analysis. Asset allocation, accountin&, ta(ation, aluation
and necessary information for &eneratin& base for conclusion. And at last but not the
least the collected data from city and their interpretation.
In short all efforts which was made to make this report e(plains
2!ORK IS !ORSHIP3
E
CONTENTS
.r. 7o. 7ame of $able -a&e 7o.
1 %bjecties of .tudy B
0 ,imitations of study D
: "(ecutie summary E
? #ompany details 11
About the #ompany 10
.ponsors of /D5# Assets Mana&ement
#ompany
1:
Mana&ement of /D5# Assets Mana&ement
#ompany
1?
%ffices of /D5# assets mana&ement company
limited
1>
B -roduct details 0?
D 5uture scenario :0
> Industry details ::
Introduction :?
/istory of Mutual 5und Industry :D
#ustomers -rofile of mutual fund industry ?=
-ositionin& .trate&y of mutual fund industry
?1
-romotional $ools "mployed by arious mutual
fund companies
?0
5acts About Mutual 5und ?B
E Mutual fund ?D
Introduction to Mutual 5und ?>
Mutual 5und #ycle ?<
#ritical iew about Mutual 5und B=
@hy Inestor 7eeds Mutual 5und B?
Mutual 5und !isk BB
< $ypes of Mutual 5und BE
1= .tructure of Mutual 5und D=
11 %ther arious assets mana&ement companies details D?
10 !e&ulatory Aspects D>
1: !esearch >1
-urpose of the !esearch >0
!esearch %bjectie >:
<
1? !esearch Methodolo&y >?
!esearch Desi&n >B
.ources of Data >D
.amplin& -lan >E
Data #ollection Method E=
1B Data analysis and findin&s E1
1D 5indin&s <0
1> ,imitations <B
1E #onclusions <>
1< !ecommendations 1==
0= Anne(ure 1=:
01 8lossary 1=B
00 ,ist of $able 1=>
0: ,ist of 8raphs 1=E
0? Biblio&raphy 1=<
1=
COMPANY
DETAILS

11
About te Com!a"y# $
An /D5# asset Mana&ement #ompany limited is well*established fund house. /D5#
Assets Mana&ement #ompany limited is sponsored by /ousin& Deelopment 5inance
#orporation ,imited F/D5#+ and .tandard life inestments limited.

/D5# assets Mana&ement #ompany limited launched its scheme /D5# "G9I$H
597D in the year ;anuary 1<<B. .ince then it focused on different class of schemes
for many years and launched seeral innoatie products that went to become
bour&eonin& cate&ories in the Indian mutual fund industry.
.ome of these were /D5# 8!%@$/ 597D, /D5# $%- 0== 597D, and /D5#
BA,A7#"D 597D, /D5# -!9D"7#" 597D etc.
/D5# assets Mana&ement #ompany limited hae offices in 0< cities and currently
mana&e assets in e(cess of !s :D1?D.D> cores. FMay 0==>.+
10
Sponsors of HDFC Assets Management Company:-
Housing Development Finance Corporation Limited (HDFC)
/D5# was incorporated in 1<>> as the first speciali'ed Mort&a&e #ompany in India.
/D5# proides financial assistance to indiiduals, corporates and deelopers for the
purchase or construction of residential housin&. It also proides property related
serices Fe.&. property identification, sales serices and aluation+, trainin& and
consultancy. %f these actiities, housin& finance remains the dominant actiity.
/D5# has a client base of around <.B lack borrowers, around 1 million depositors,
oer <1,=== shareholders and B=,=== deposit a&ents as at March :1, 0==>. /D5# has
raised funds from international a&encies such as the @orld Bank, I5# F@ashin&ton+,
9.AID, D"8, ADB and Kf@, international syndicated loans, domestic term loans
from banks and insurance companies, bonds and deposits. /D5# has receied the
hi&hest ratin& for its bonds and deposits pro&ram for the twelfth year in succession.
/D5# .tandard ,ife Insurance #ompany ,imited, promoted by /D5# was the first
life insurance company in the priate sector to be &ranted a #ertificate of !e&istration
Fon %ctober 0:, 0===+ by the Insurance !e&ulatory and Deelopment Authority to
transact life insurance business in India.
Standard Life nvestments Limited
$he .tandard ,ife Assurance #ompany was established in 1E0B and has considerable
e(perience in &lobal financial markets. $he company was present in the Indian life
insurance market from 1E?> to 1<:E when a&encies were set up in Kolkata and
Mumbai. $he company re*entered the Indian market in 1<<B, when an a&reement was
si&ned with /D5# to launch an insurance joint enture. %n April 0==D, the Board of
$he .tandard ,ife Assurance #ompany recommended that it should demutualise and
.tandard ,ife plc float on the ,ondon .tock "(chan&e. At a .pecial 8eneral Meetin&
held in May otin& members oerwhelmin&ly oted in faor of this. $he #ourt of
.ession in .cotland approed this in ;une and .tandard ,ife plc floated on the ,ondon
.tock "(chan&e on 1= ;uly 0==D. .tandard ,ife Inestments was launched as an
inestment mana&ement company in 1<<E. It is a wholly owned subsidiary of
.tandard ,ife Inestments F/oldin&s+ ,imited, which in turn is a wholly owned
subsidiary of .tandard ,ife plc. .tandard ,ife Inestments is a leadin& asset
mana&ement company, with appro(imately 9.I 0D< billion as at March :=, 0==>, of
assets under mana&ement. $he company operates in the 9K, #anada, /on& Kon&,
#hina, Korea, Ireland and the 9.A to ensure it is able to form a truly &lobal
inestment iew. In order to meet the different needs and risk profiles of its clients,
.tandard ,ife Inestments ,imited mana&es a dierse portfolio coerin& all of the
major markets world*wide, which includes a ran&e of priate and public e4uities,
&oernment and company bonds, property inestments and arious deriatie
instruments.
1:
Management of HDFC Assets Management Company:-

HDFC !rustee Company Limited:
A company incorporated under the #ompanies Act, 1<BD is the $rustee to the Mutual
5und ides the $rust deed dated ;une E, 0===, as amended from time to time. /D5#
$rustee #ompany ,imited is a wholly owned subsidiary of /D5# ,imited.
HDFC Asset Management Company Limited:
/D5# assets Mana&ement #ompany limited was incorporated under the #ompanies
Act, 1<BD, on December 1=, 1<<<, and were approed to act as an Asset Mana&ement
#ompany for the Mutual 5und by ."BI on ;uly :, 0===. $he re&istered office of the
/D5# assets Mana&ement #ompany limited is situated at !amon /ouse, :rd 5loor,
/.$. -arekh Mar&, 1D<, Backbay !eclamation, #hurch &ate, Mumbai * ?== =0=. In
terms of the Inestment Mana&ement A&reement, the $rustee has appointed /D5#
Asset Mana&ement #ompany ,imited to mana&e the Mutual 5und. $he paid up
capital of the /D5# assets Mana&ement #ompany limited is !s.>B.1D1 crore.
1?
$he present share holdin& pattern of the /D5# Assets mana&ement company is as
follows)
-articulars
J of the paid up share
capital
/D5# B=.1=
.tandard ,ife Inestments
,imited
?<.<=
$he /D5# Assets mana&ement company is mana&in& 1E open*ended schemes of the
Mutual 5und i'. /D5# 8rowth 5und F/85+, /D5# Balanced 5und F/B5+, /D5#
Income 5und F/I5+, /D5# ,i4uid 5und F/,5+, /D5# $a( -lan 0=== F/$-+, /D5#
#hildrenKs 8ift 5und F/D5# #85+, /D5# 8ilt 5und F/8I,$+, /D5# .hort $erm
-lan F/.$-+, /D5# Inde( 5und, /D5# 5loatin& !ate Income 5und F/5!I5+, /D5#
"4uity 5und F/"5+, /D5# $op 0== 5und, F/$0==+, /D5# #apital Builder 5und
F/#B5+, /D5# $a( .aer F/$.+, /D5# -rudence 5und F/-5+, /D5# /i&h Interest
5und F//I5+, /D5# .oerei&n 8ilt 5und F/.85+ and /D5# #ash Mana&ement
5und F/#M5+. /D5# assets Mana&ement #ompany limited is also mana&in& the
respectie -lans of /D5# 5i(ed Inestment -lan, a closed ended Income .cheme.
$he /D5# Assets mana&ement company has obtained re&istration from ."BI ide
!e&istration 7o. * -M L I7-======B=D dated December 00, 0=== to act as a -ortfolio
Mana&er under the ."BI F-ortfolio Mana&ers+ !e&ulations, 1<<:.
$he /D5# Assets mana&ement company is also proidin& portfolio mana&ement L
adisory serices and such actiities are not in conflict with the actiities of the
Mutual 5und
1B
/D5# assets Mana&ement #ompany3s punch line is 1continuin& a
tradition of trust2.
In 8ujarat /D5# assets Mana&ement #ompany is located at Ahmadabad,
.urat, adodara, !ajkot.
/D5# assets Mana&ement #ompany is workin& from <):= a.m. onwards.
/D5# assets Mana&ement #ompany /ae 0== and more distributors in
.urat.
/D5# assets Mana&ement #ompany -roide account statements to
inestors accordin& to inestor3s re4uirement.
/D5# assets Mana&ement #ompany -roide &ood serices to inestors.
1D
O%%ice& o% HDFC ASSETS MANAGEMENT
COM'AN( )IMITED
I76".$%! ."!6I#" #"7$!".L
%55I#IA, -%I7$. %5 A##"-$A7#" 5%! /D5# M9$9A,
597D
!"8I.$"!"D
%55I#"
/D5# Mutual 5und * Mumbai M
!amon /ouse, :rd 5loor,
/.$ -arekh Mar&, 1D<,
Backbay !eclamation, #hurch &ate
Mumbai ?===0=.
Andhra -radesh
/D5# Mutual 5und * /yderabad
D*:*EE:L>, 0nd 5loor,
.aphire .4uare, .omaji&uda,
/yderabad * B==0E0.
"mail)sericeshyderabadNhdfcfund.com
/D5# Mutual 5und * 6isakhapatnam
8round 5loor, .ai&opal Arcade,
%pp @altair #lub,
@altair Main !oad, .iripuram,
6isakhapatnam * B:===:.
"mail)sericesi'a&Nhdfcfund.com
Bihar
/D5# Mutual 5und * -atna
!ani -la'a Apartment,
F-atna O*!ay #linic+,
"(hibition !oad,
-atna * E====1.
"mail)sericespatnaNhdfcfund.com
7ew Delhi
/D5# Mutual 5und * 7ew Delhi
?th 5loor, Mohan De Bld&., 1:,
$olstoy Mar&, #onnau&ht -lace,
7ew Delhi * 11===1.
"mail)sericesdelhiNhdfcfund.com
8oa /D5# Mutual 5und * 8oa
1>
A:, 5irst 5loor, Krishna Buildin&,
%pp. "ducation Dept,
Behind .usheela Buildin&, 8.-. !oad,
-anaji * ?=:==1.
"mail)serices&oaNhdfcfund.com
8ujarat
/D5# Mutual 5und * Ahmadabad
0nd 5loor, Me&ha /ouse,
Besides 8ruh /ouse,
Mithakhali .i( !oads,
Ahmedabad * :E===<.
"mail)sericesahmedabadNhdfcfund.com
/D5# Mutual 5und * !ajkot
0nd 5loor, .hi Darshan,
Dr !adha Krishnan !oad,
B, ;a&nath -lot #orner,
!ajkot * :D===1.
"mail)sericesrajkotNhdfcfund.com
/D5# Mutual 5und * .urat
91 * 9:, ;olly -la'a,
%pp Athwa 8ate -olice .tation,
Athwa 8ate,
.urat * :<B==1.
"mail)sericessuratNhdfcfund.com
/D5# Mutual 5und * 6adodara
9pper 8round 5loor, 8okulesh,
! # Dutt !oad,
6adodara * :<===>.
"mail)sericesadodaraNhdfcfund.com
;harkhand
/D5# Mutual 5und P ;amshedpur
8ayatri "nclae,
0nd 5loor, QK !oadQ,
Bistupur,
;amshedpur * E:1==1.
"mail)sericesjamshedpurNhdfcfund.com
Karnataka /D5# Mutual 5und P Ban&alore
7o.11?, 1st 5loor, -resti&e $owers,
<< A 1==, !esidency !oad,
Ban&alore * BD==0B.
"mail)sericesban&aloreNhdfcfund.com
/D5# Mutual 5und P Man&alore
1E
98 *II, D A >, 9pper 8round 5loor,
Ma(imus #ommercial #omple(,
,i&ht /ouse /ill !oad, %pp. KM#,
Man&alore * B>B==1.
"mail)sericesman&aloreNhdfcfund.com
Kerala
/D5# Mutual 5und P Kochi
8round 5loor,
#inema #um #ommercial #omple(,
Behind !aipuram Bus .top,
M.8. !oad,
Kochi * DE0=1D.
"mail)sericeskochiNhdfcfund.com
Madhya
-radesh
/D5# Mutual 5und P Bhopal
!anjit $owers,
Rone II, E M- 7a&ar,
Bhopal * ?D0=11.
"mail)sericesbhopalNhdfcfund.com
/D5# Mutual 5und P Indore
M1, M0 A M:, Me''anine 5loor,
.terlin& Arcade,1B L :, !ace #ourse !oad,
Indore * ?B0==1.
"mail)sericesindoreNhdfcfund.com
Maharashtra /D5# Mutual 5und P Mumbai
Mistry Bhaan, 1st 5lr, 100,
Backbay !eclamation,
Dinsha 6achha !oad, #hurch&ate,
Mumbai * ?===0=.
"mail)sericesmumbaiNhdfcfund.com
/D5# Mutual 5und P 7a&pur
1=D*11=, .hriram .hyam $owers,
0nd 5loor, 7e(t to 7I$ Buildin&,
Kin&sway, .adar,
7a&pur * ??===1.
"mail)sericesna&purNhdfcfund.com
/D5# Mutual 5und P 7ashik
8* 1 A 8*0, Q.uyojit /ei&htsQ,
%pp. !aji 8andhi Bhaan,
.haranpur !oad,
7ashik * ?00==0.
"mail)sericesnashikNhdfcfund.com
/D5# Mutual 5und P -une
1<
/D5# /ouse, 0nd 5loor,
.hiaji 7a&ar, 9niersity !oad,
-une * ?11==B.
"mail)sericespuneNhdfcfund.com
%rissa
/D5# Mutual 5und P Bhubaneswar
0nd 5loor, 6inayak <D,
;anpath,
Bhubaneshwar * >B1==1.
"mail)sericesbhubaneshwarNhdfcfund.com
-unjab
/D5# Mutual 5und P #handi&arh
.#% :>B*:>D,
8round 5loor, .ector :B*B,
#handi&arh * 1D==00.
"mail)sericeschandi&arhNhdfcfund.com
/D5# Mutual 5und P ,udhiana
.#% 100,
5ero'e 8andhi Market,
,udhiana * 1?1==1.
"mail)sericesludhianaNhdfcfund.com
!ajasthan
/D5# Mutual 5und P ;aipur
Moondhra Bhaan,
: Ajmer !d,
;aipur * :=0==1.
"mail)sericesjaipurNhdfcfund.com
/D5# Mutual 5und P ;odhpur
8ulab .in&h Buildin&,
11, #hopasani !oad,
;odhpur * :?0==:.
"mail)sericesjodhpurNhdfcfund.com
$amil 7adu
/D5# Mutual 5und P #oimbatore
1:>1A, 8round 5loor,
7adar Buildin& $richy !oad,
#oimbatore * D?1=1E.
"mail)sericescoimbatoreNhdfcfund.com
/D5# Mutual 5und P #hennai
I$# #entre, 1st 5loor,
>D= Anna .alai,
#hennai * D====0.
"mail)sericeschennaiNhdfcfund.com
9ttar -radesh /D5# Mutual 5und P Kanpur
0=
1st 5loor, 1DLE= D,
Behind .BI Main, #iil ,ines,
Kanpur * 0=E==1.
"mail)sericeskanpurNhdfcfund.com
/D5# Mutual 5und P ,ucknow
? .hahnajaf !oad,
,ucknow * 00D==1.
"mail)sericeslucknowNhdfcfund.com
@est Ben&al
/D5# Mutual 5und P Kolkata
Menaka "state, 1st 5loor,
: !ed #ross -lace,
Kolkata * >====1.
"mail)sericeskolkataNhdfcfund.com
01
(Fig no "- office locations of HDFC Assets Management Company)
00
PRODUCT
DETAILS
0:
'ro*uct Detai+&
#$%!& 'ALA(C#D D#'!

(Fig no ) - Different !ypes of *roducts)
EQUITY SCHEMES OF HDFC ASSET MANAGEMENT
COMPANY:-
1. HDFC Equity Fund:-
Inest!ent O"#e$tie: $he inestment objectie of the .cheme
Is to achiee capital appreciation.
Inest!ent O%ti&ns) Diidend A 8rowth %ption
N'tu(e &) S$*e!e: - %pen "nded 8rowth .cheme
In$e%ti&n D'te) * ;anuary =1, 1<<B
0?
2. HDFC growth fund:-
Inest!ent O"#e$tie: - $he primary inestment objectie of
the .cheme is to &enerate lon& term capital appreciation from a
portfolio that is inested predominantly in e4uity and e4uity
related instruments.
Inest!ent O%ti&ns: Diidend A 8rowth %ption
In$e%ti&n D'te) *.eptember 11, 0===
3. HDFC Top 200 fund:-
Inest!ent O"#e$tie: - $o &enerate lon&*term capital
appreciation from a portfolio of e4uity and e4uity*linked
instruments primarily drawn from the companies in B." 0==
inde(.
4. HDFC mid cp! opportunity fund"-
appreciation from a portfolio that is substantially constituted of
e4uity and e4uity related securities of small and Mid*#ap
companies.
N'tu(e &) S$*e!e:- %pen "nded 8rowth .cheme
In$e%ti&n D'te)* May =>, 0==>
#. HDFC cpit$ %ui$d!r fund:-
appreciation from a portfolio that is substantially constituted of
e4uity and e4uity related securities of small and Mid*#ap
companies.
In$e%ti&n D'te)* 5ebruary =1, 1<<?
0B
&. HDFC cor! nd 't!$$it! fund:-
Inest!ent O"#e$tie: - $he primary objectie of the
.cheme is to &enerate capital appreciation throu&h e4uity
inestment in companies whose shares are 4uotin& at prices
below their true alue.
In$e%ti&n D'te)* .eptember 1>, 0==?
+, HDFC premier multicape fund:-
Inest!ent O"#e$tie: - $he primary objectie of the .cheme
is to &enerate capital appreciation in the lon& term throu&h
e4uity inestments by inestin& in a diersified portfolio of
Mid #ap and ,ar&e #ap Sblue chipS companies.
Inest!ent O%ti&ns: Diidend -lan, 8rowth -lan, $he
Diidend -lan offers Diidend -ayout and !einestment
5acility.
In$e%ti&n D'te) * April =D, 0==B
'ALA(C#D SCH#M#S -F HDFC ASS#! MA(A.#M#(!
C-M*A(&:-
1. HDFC %$nc!d fund: -
.cheme is to &enerate capital appreciation alon& with current
income from a combined portfolio of e4uity and e4uity
related and debt and money market instruments.
N'tu(e &) S$*e!e: - %pen "nded balanced fund
In$e%ti&n D'te: - .eptember 11, 0===

0D
2. HDFC prud!nc! fund:-
Inest!ent O"#e$tie: - $he inestment objectie of the
.cheme is to proide periodic returns and capital
appreciation oer a lon& period of time, from a judicious mi(
of e4uity and debt inestments, with the aim to preentL
minimi'e any capital erosion
N'tu(e &) S$*e!e: - %pen "nded balanced fund
In$e%ti&n D'te: - 5ebruary =1, 1<<?
/, HDFC 'hort t!rm p$n:-
/D5# .hort $erm -lan is to &enerate re&ular income
throu&h inestment in debt securities and money market
instruments.
Inest!ent O%ti&ns: 8rowth -lan, Diidend -lan. $he
5acility.
N'tu(e &) S$*e!e:- %pen "nded income fund
In$e%ti&n D'te: - 5ebruary 0E, 0==0
4. HDFC mu$ti yi!$d fund:-
.cheme is to &enerate positie returns oer medium time
frame with low risk of capital loss oer medium time frame.
Inest!ent O%ti&ns: 8rowth -lan, Diidend -lan. $he
5acility.
N'tu(e &) S$*e!e: - %pen "nded income fund
In$e%ti&n D'te: - .eptember 1>, 0==?
0>
D#'! SCH#M#S -F HDFC ASS#! MA(A.#M#(!
C-M*A(& :-
1. HDFC (ncom! Fund:-
is to optimi'e returns while maintainin& a balance of safety,
yield and li4uidity.
N'tu(e &) S$*e!e: - %pen "nded Income .cheme
In$e%ti&n D'te: - .eptember 11, 0===
2. HDFC (ncom! Fund: -
Inest!ent O"#e$tie: - $he inestment objectie of /D5#
/i&h Interest 5und is to &enerate income by inestin& in a
ran&e of debt and money market instruments of arious
maturity dates with a iew to ma(imi'in& income while
maintainin& the optimum balance of yield, safety and li4uidity.
N'tu(e &) S$*e!e: - %pen "nded Income .cheme
In$e%ti&n D'te: - April 0E, 1<<>
3. HDFC )F )onth$y (ncom! *$n - +hort T!rm *$n:-
Inest!ent O"#e$tie: - $he primary objectie of .cheme is
to &enerate re&ular returns throu&h inestment primarily in
Debt and Money Market Instruments. $he secondary objectie
of the .cheme is to &enerate lon&*term capital appreciation by
inestin& a portion of the .cheme3s assets in e4uity and e4uity
related instruments. /oweer, there can be 7o assurance that
the inestment objectie of the .cheme will be achieed.
0E
Inest!ent O%ti&ns: Guarterly Diidend %ption, Monthly
Diidend %ption, and 8rowth -lan. $he Diidend -lan offers
Diidend -ayout and !einestment 5acility
N'tu(e &) S$*e!e: - An open*ended income scheme. Monthly
income is not assured and is subject to aailability of
distributable surplus
In$e%ti&n D'te:- December 0D, 0==:
4. HDFC )F )onth$y (ncom! *$n - ,ong T!rm *$n:-
Inest!ent O"#e$tie: - $he primary objectie of .cheme is
to &enerate re&ular returns throu&h inestment primarily in
Debt and Money Market Instruments. $he secondary objectie
of the .cheme is to &enerate lon&*term capital appreciation by
inestin& a portion of the .cheme3s assets in e4uity and e4uity
related instruments. /oweer, there can be no assurance that
the inestment objectie of the .cheme will be achieed
Inest!ent O%ti&ns: 8rowth -lan, Guarterly Diidend
%ption, Monthly Diidend %ption. $he Diidend -lan offers
Diidend -ayout and !einestment 5acility.
N'tu(e &) S$*e!e: - An open*ended income scheme. Monthly
income is not assured and is subject to aailability of
distributable surplus
In$e%ti&n D'te: - December 0D, 0==:
0<
#. HDFC F$oting -t! (ncom! Fund ,ong T!rm *$n:-
is to &enerate re&ular income throu&h inestment in a portfolio
comprisin& substantially of floatin& rate debt L money market
instruments, fi(ed rate debt L money market instruments swapped
for floatin& rate returns, and fi(ed rate debt securities and money
market instruments.
Inest!ent O%ti&ns: Diidend -lan, 8rowth -lan. $he
Diidend -lan offers !einestment 5acility only
N'tu(e &) S$*e!e: - An open*ended income scheme.
In$e%ti&n D'te: - ;anuary 1D, 0==:
:=
FUTURE
SCENARIO
:1
$he asset base will continue to &row at an annual rate of about :B to ?=J
oer the ne(t fie year as inestor3s shift their assets from banks and other
traditional aenues. .ome of the older public and priate sector players will
either close shop or be taken oer.
%ut of ten public players fie will sell out, close down or mer&e with stron&er
player in three to four years. In the priate sector this trend has already started
with two mer&ers and one take oer. /ere too some of them will down their
shutters in the near future to come.
But this does not mean that there is no room for other players. $he
market will witness a flurry of new players enterin& the areas. $here will be a
lar&e no. of offers from arious asset mana&ement companies in the time to
come, some bi& names like -rinciple, .BI, 5idelity, old mutual etc are lookin&
at Indian market seriously. %ne important reason for it is that most major
players hae presence here and hence these bi& names would hardly like to &et
left behind.
$he mutual fund industry is awaitin& the introduction of deriaties in India as
this would enable it to hed&e its risk and this in turn would be reflected in its
7et Asset 6alue F7A6+.

."BI is workin& out the norms for enablin& the e(istin& mutual fund schemes
to trade in deriaties. Importantly, many market players hae called on the
!e&ular to initiate the process immediately, so that the mutual funds can
implement the chan&es that are re4uired to trade in Deriaties.
:0
INDUSTRY
DETAILS
::
I"tro*uctio"
A Mutual 5und is a trust that pools the sain&s of a number of inestors who share a
common financial &oal. $he money thus collected is inested by the fund mana&er in
different types of securities dependin& upon the objectie of the scheme. $hese could
ran&e from shares to debentures to money market instruments. $he income earned
throu&h these inestments and the capital appreciations reali'ed by the scheme are
shared by its unit holders in proportion to the number of units owned by them. $hus a
Mutual 5und is the most suitable inestment for the common man as it offers an
opportunity to inest in a diersified, professionally mana&ed portfolio at a relatiely
low cost.
Anybody with an inestible surplus of as little as a few thousand rupees can inest in
Mutual 5unds. "ach Mutual 5und scheme has a defined inestment objectie and
strate&y.
A Mutual 5und is the ideal inestment ehicle for today3s comple( and modern
financial scenario. Markets for e4uity shares, bonds and other fi(ed income
instruments, real estate, deriaties and other assets hae become mature and
information drien. -rice chan&es in these assets are drien by &lobal eents
occurrin& in faraway places. A typical indiidual is unlikely to hae the knowled&e,
skills, inclination and time to keep track of eents, understand their implications and
act speedily. An indiidual also finds it difficult to keep track of ownership of his
assets, inestments, brokera&e dues and bank transactions etc.
:?
A Mutual 5und is the answer to all these situations. It appoints professionally
4ualified and e(perienced staff that mana&es each of these functions on a full time
basis. $he lar&e pool of money collected in the fund allows it to hire such staff at a
ery low cost to each inestor.
In effect, the Mutual 5und ehicle e(ploits economies of scale in all three areas *
research, inestments and transaction processin&. @hile the concept of indiiduals
comin& to&ether to inest money collectiely is not new, the mutual fund in present
form is a 0=
th
century phenomenon. In fact, mutual funds &ained popularity only after
the .econd @orld @ar. 8lobally, there are thousands of firms offerin& tens of
thousands of mutual funds with different inestment objecties. $oday, Mutual 5unds
collectiely mana&e almost as much as or more money as compared to banks.
:B
Hi&tory o% Mutua+ Fu"* I"*u&try
$he mutual fund industry in India started in 1<D: with the formation of 9nit $rust of
India, at the initiatie of the 8oernment of India and !esere Bank of India. $he
history of mutual funds in India can be broadly diided into four distinct phases
Fir't ph'! . 1/&4-01
2)onopo$y of 3T(4
An Act of -arliament established 9nit $rust of India F9$I+ on 1<D:. It was set up by
the !esere Bank of India and functioned under the !e&ulatory and administratie
control of the !esere Bank of India. In 1<>E 9$I was de*linked from the !BI and
the Industrial Deelopment Bank of India FIDBI+ took oer the re&ulatory and
administratie control in place of !BI. $he first scheme launched by 9$I was 9nit
.cheme 1<D?. At the end of 1<EE 9$I had !s.D, >== crores of assets under
mana&ement.

+!cond *h'! . 1/01-/3
2Entry of *u%$ic +!ctor Fund'4
1<E> marked the entry of non* 9$I, public sector mutual funds set up by public sector
banks and ,ife Insurance #orporation of India F,I#+ and 8eneral Insurance
#orporation of India F8I#+. .BI Mutual 5und was the first non* 9$I Mutual 5und
established in ;une 1<E> followed by #anbank Mutual 5und FDec E>+, -unjab
7ational Bank Mutual 5und FAu& E<+, Indian Bank Mutual 5und F7o E<+, Bank of
India F;un <=+, and Bank of Baroda
Mutual 5und F%ct <0+. ,I# established its mutual fund in ;une 1<E< while 8I# had
set up its mutual fund in December 1<<=.
At the end of 1<<:, the mutual fund industry had assets under mana&ement of !s.?>,
==? crores.

Third *h'! . 1//3-2003
:D
2Entry of *ri5t! +!ctor Fund'4
@ith the entry of priate sector funds in 1<<:, a new era started in the Indian mutual
fund industry, &iin& the Indian inestors a wider choice of fund families. Also, 1<<:
was the year in which the first Mutual 5und !e&ulations came into bein&, under
which all mutual funds, e(cept 9$I were to be re&istered and &oerned. $he erstwhile
Kothari -ioneer Fnow mer&ed with 5ranklin $empleton+ was the first priate sector
mutual fund re&istered in ;uly 1<<:.

$he 1<<: ."BI FMutual 5und+ !e&ulations were substituted by a more
comprehensie and reised Mutual 5und !e&ulations in 1<<D. $he industry now
functions under the ."BI FMutual 5und+ !e&ulations 1<<D.

$he number of mutual fund houses went on increasin&, with many forei&n mutual
funds settin& up funds in India and also the industry has witnessed seeral mer&ers
and ac4uisitions. As at the end of ;anuary 0==:, there were :: mutual funds with total
assets of !s. 1, 01,E=B crores. $he 9nit $rust of India with !s.??, B?1 crores of assets
under mana&ement was way ahead of other mutual funds.

Forth *h'! .
+inc! F!%rury 2003
In 5ebruary 0==:, followin& the repeal of the 9nit $rust of India Act 1<D: 9$I was
bifurcated into two separate entities. %ne is the .pecified 9ndertakin& of the 9nit
$rust of India with assets under mana&ement of !s.0<, E:B crores as at the end of
;anuary 0==:, representin& broadly, the assets of 9. D? scheme, assured return and
certain other schemes. $he .pecified 9ndertakin& of 9nit $rust of India, functionin&
under an administrator and under the rules framed by 8oernment of India and does
not come under the puriew of the Mutual 5und !e&ulations.

:>
$he second is the 9$I Mutual 5und ,td, sponsored by .BI, -7B, B%B and ,I#. It is
re&istered with ."BI and functions under the Mutual 5und !e&ulations. @ith the
bifurcation of the erstwhile 9$I which had in March 0=== more than !s.>D, ===
crores of assets under mana&ement and with the settin& up of a 9$I Mutual 5und,
conformin& to the ."BI Mutual 5und !e&ulations, and with recent mer&ers takin&
place amon& different priate sector funds, the mutual fund industry has entered its
current phase of consolidation and &rowth. As at the end of %ctober :1, 0==:, there
were :1 funds, which mana&e assets of !s.10D>0D crores under :ED schemes.
:E
T*e g('%* indi$'tes t*e g(&+t* &) 'ssets &e( t*e
,e'(s-
(Fig no /, .ro0t1 of Asset -ver !1e year)
:<
Cust&!e(s P(&)i.e &) !utu'. )und indust(,:-

(Fig no 2,!ype of Customer)
1. @hile you recommend a financial plan, you also need to understand the
needs and financial objecties of your customer alon& with his risk tolerance
and his e(pectations from the inestments.
0. /onest and strai&htforward adice is appreciated. /elp your customers make
the ri&ht choice
:. Adise your customers to start inestin& early and re&ularly to help them
optimi'e the benefits of the compoundin& rupee.
?. /elp your inestors with the procedures and paper work inoled in makin&
an inestment.
$reat eery customer e(clusiely. A satisfied customer can &ie you increased
business throu&h resale and referrals of other prospectie customers
?=
*ositioning Strategy of mutual fund industry:-
-ositionin& starts with a product. But positionin& is not what you do to a product.
-ositionin& is what you do to the mind of the prospect. $hat is, you position the
product in the mind of prospect. A company3s differentiatin& and positionin& strate&y
must chan&e as the product, market, and competitors chan&e oer time. . T*e(e
s*&u.d "e n& unde( %&siti&ning/ &e( %&siti&ning/ $&n)used %&siti&ning &(
d&u"t)u. %&siti&ning-
C1annel of Distri3ution:-
In "ery asset Mana&ement #ompany3s distribution channel played ery
important roles.
/ere assets mana&ement companies hae distributors like
#onsultants
A&ents
Distributors
Adisers
Broker
$heir role is ery important for Assets Mana&ement #ompany3s %ffice.
?1
*romotional !ools #mployed 3y various mutual fund
companies:-
.ome specific other document help to increase sellin& product like) *
(") 'anners: -
Banners define brief idea of scheme, it should be ery attractie with specific
objectie A its related picture in city, and Banners keep in specific places which
ery help to do &ood publicity. It distributes only by AM#3s office.
@hen any new scheme is launched or any new 75% comin& up that times
company make banners before few days. Its helps to &ood adertisin& A easy
coer to customer or people.
()) Application Form:
Any product like "4uity, debt and balance, inestor should fill up its common
Application forms.

5orm define acknowled&e slip which &ie return to customer.
Actually :*time stamp done in form, one of them is acknowled&ed slip.
$hese forms are distributed by Assets Mana&ement #ompany3s office.
It is all Assets Mana&ement #ompany3s office duty to dispatch forms to their
customer like a&ents, brokers, and adisers time to time.
(/) 'roac1ers:
Broachers include brief history of company. It defines when and where assets
mana&ement #ompany inests inestor3s money.
$his defines performance of each scheme product A also defines its comparison to
last : months to more than B years.
In end of eery month Assets Mana&ement #ompany3s office send Boucher to
their inestors, brokers, a&ents, adisers re&ularly.
?0
(#! ASS#! 4AL%#:-
$he 7et Asset 6alue or 7A6 is a term used to describe the alue of an entityKs assets
less the alue of its liabilities. $he term is commonly used in relation to collectie
inestment schemes. It may also be used as a synonym for the book alue of a firm.
7A6 coers the companyKs current asset and liability position. Inestors mi&ht
e(pect the company to hae lar&e &rowth prospects, in which case they would be
prepared to pay more for the company than the 7A6 su&&ests.
$he 7A6 is usually below the market price because the current alues of the fund3s
assets are hi&her than the historical financial statements used in the 7A6 calculation.
CALC%LA!(. (#! ASS#! 4AL%#
9nit capital is the inestor3s subscriptions. In M5 it is not treated as a liability.
Inestments made on behalf of the inestors are assets side of the balance sheet. $here
are liabilities of short*term nature.
597D. 7"$ A.."$ T A.."$ P ,IABI,I$I".
7A6 T 7et Assets

Issued 9nits
I.e.
7A6T Fmarket alue of inestments U other accrued income U other assets P accrued
e(penses P other payables Pother liabilities+L Fno. %f units outstandin& as at the 7A6
date+
?:
!H# FAC!-5 AFF#C!(. !H# (A4 A5# AS F-LL-6(.:
1. #apital &ains or losses on the sale or purchase of inestment
.ecurities.
0. Diidend and income earned on the assets
:. #apital appreciation in the underlyin& alue of the stocks holds in the portfolio
?. %ther assets and liabilities
B. 7umber of units sold or purchased
??
Fact& About Mutua+ Fu"*
"4uity Instruments like shares form only a part of the securities held by
Mutual 5unds. Mutual 5unds also inest in debt securities, which are
relatiely much safer.
$he bi&&est adanta&e of Mutual 5unds is their ability to diersify the risk.
Mutual 5unds are there in India since 1<D?. Mutual 5unds market is much
eoled in 9...A and is there for last D= years.
Mutual 5unds are the best solution for people who want to mana&e risk and
&et &ood returns.
$he si'e of Mutual 5unds market in India is !s. 1=>>0E crores and that in
9...A is many times hi&her.
Accordin& to the ."BI * 7#A"! .urey of Indian Inestors about 1B million
or E.>J of the households hae inested in Mutual 5unds and there are nearly
0: million unit holders in India.
:=J of inestors fall in the income &roup of inestors hain& monthly income
up to !s. 1=,===L*.
In 9...A there are more deposits in the mutual funds than in bank deposits.
$he truth is, as inestors we should always pay attention to our mutual funds
and continue to monitor them.
?B
MUTUAL FUND
?D
I"tro*uctio" to Mutua+ Fu"*
A Mutual 5und is a trust that pools the sain&s of a number of inestors who share a
common financial &oal. $he money thus collected is inested by the fund mana&er in
different types of securities dependin& upon the objectie of the scheme. $hese could
ran&e from shares to debentures to money market instruments. $he income earned in
these inestments and the capital appreciation reali'ed by the scheme is shared by its
unit holders in proportion to the number of units owned by them. $hus a Mutual 5und
is the most suitable inestment for the common man as it offers an opportunity to
inest in a diersified, professionally mana&ed portfolio at a relatiely low cost.
Anybody with an inest able surplus of a few thousand rupees can inest in Mutual
5unds. "ach Mutual 5und scheme has a defined inestment objectie and strate&y.
A mutual fund is the ideal inestment ehicle for today3s comple( and modern
financial scenario. Markets for e4uity shares, bonds and other fi(ed income
instruments, real estate, deriaties and other assets hae become mature and
information drien. -rice chan&es in these assets are drien by &lobal eents
occurrin& in faraway places. A typical indiidual is unlikely to hae the knowled&e,
skills, inclination and time to keep track of eents, understand their implications and
act speedily.
A mutual fund is answer to all these situations. It appoints professionally 4ualified
and e(perienced staff that mana&es each of these functions on a fulltime basis. $he
lar&e pool of money collected in the fund allows it to hire such staff at a ery low cost
to each inestor. In fact, the mutual fund ehicle e(ploits economies of scale in all
three areas Presearch, inestment and transaction processin&.
?>
A draft offer document is to be prepared at the time of launchin& the fund. $ypically,
it pre specifies the inestment objectie of the fund, the risk associated, the cost
inoled in the process and the broad rules for entry into and e(it from the fund and
other areas of operation. In India, as in most countries, these sponsors need approal
from a re&ulator, ."BI in our case. ."BI looks at track records of the sponsor and its
financial stren&th in &rantin& approal to the fund for commencin& operations.
A sponsor then hires an asset mana&ement company to inest the funds accordin& to
the inestment objectie. It also hires another entity to be the custodian of the assets
of the fund and perhaps a third one to handle re&istry work for the unit holders of the
fund. In the Indian conte(t, the sponsors promote the Asset Mana&ement #ompany
also, in which it holds a majority stake. In many cases a sponsor can hold a 1==J
stake in the Asset Mana&ement #ompany FAM#+.
".&. Birla 8lobal 5inance is the sponsor of the Birla .un ,ife Asset Mana&ement
#ompany ,td., which has floated different mutual funds schemes and also acts as an
asset mana&er for the funds collected under the schemes.
As per ."BI re&ulations, mutual funds can offer &uaranteed returns for a ma(imum
period of one year. In case returns are &uaranteed, the name of the &uarantor and how
the &uarantee would be honored is re4uired to be disclosed in the offer document.
?E
Mutua+ Fu"* Cyc+e
(Fig no 7,-Mutual Fund Cycle)
5rom the aboe cycle, it can be obsered that how the money from the inestors flow
and they &et returns out of it. @ith a small amount of fund, inestors pool their money
with the funds mana&ers. $akin& into consideration the market strate&y the funds
mana&ers inest this pool of money into reliable securities. @ith ups and downs in
market returns are &enerated and they are passed on to the inestors. $he aboe cycle
should be ery clear and also effectie.
$he fund mana&er while inestin& on behalf of inestors takes into consideration
arious factors like time, risk, return, etc. so that he can make proper inestment
decision.
?<
Critica+ vie, about Mutua+ Fu"*
Benefits
If mutual funds are emer&in& as faorite inestment ehicle, it is because of the many
adanta&es they hae oer other forms and aenues of inestin&, particularly for the
inestors who has limited resources aailable in terms of capital and ability to carry
out details research and market monitorin&. $he followin& are the major adanta&es
offered by mutual funds to all inestors.
*5-F#SS-(AL #8*#5!S#
5und mana&ers are professionals who track the market on an on &oin& basis.
@ith their mi( of professional 4ualification and market knowled&e, they are
better placed than the aera&e inestor to understand the markets.
D4#5SFCA!-(
.ince a mutual fund scheme inests in number of stocks andLor debentures, the
associated risks are &reatly reduced.
5#LA!4#L& L#SS #8*#(S4#
@hen compared to direct inestments in the capital market, mutual funds cost
less. $his is due to sain&s in brokera&e costs, demat costs, depository costs
etc.
L$%D!&
Inestments in mutual funds are completely li4uid and can be redeemed at 7et
Assets 6alue F7A6+ related price on any workin& day.
!5A(S*A5#(C&
Hou will always hae access to up*to*date information on the alue of your
inestment in addition to the complete portfolio of inestments, the proportion
allocated to different assets and the fund mana&er3s inestment strate&y.
B=
FL#8'L!&
$hrou&h features such as re&ular inestment plans, re&ular withdrawal plans
and diidend inestment plans, you can systematically inest or withdraw
funds accordin& to your needs and conenience.
S#' 5#.%LA!#D
All mutual funds are re&istered with ."BI and function within the proisions
and re&ulations that protect the interests of inestors.
61ile most investment options provide most of t1ese features9 only
Mutual Funds provide all of t1ese options,
B1
,imitations
(- C-(!5-L -4#5 C-S!
Any inestor in a mutual fund has no control oer the oerall cost of inestin&.
/e pays inestment mana&ement fees as lon& as he remains with fund, albeit in
return for the professional mana&ement and research. 5ees are payable een in
declinin& sta&e. A mutual fund inestor also pays fund distribution costs, which
he would not incur in direct inestin&. /oweer, this shortcomin& only means
that there is a cost to obtain the benefits of mutual fund serices.
(- !AL-5-MAD# *-5!F-L-S
Inestors who inest on there own can build their own portfolios of shares and
bonds and other securities. Inestin& throu&h funds means he dele&ates this
decision to the fund mana&ers. $he ery hi&h*net*worth indiiduals or lar&e
corporate inestors may find this to be a constraint in achiein& their
objecties. /oweer, most mutual fund mana&ers help inestors oercome this
constraint by offerin& families of funds* a lar&e number of different schemes P
within their own mana&ement company. An inestor can choose form different
inestment plans and construct a portfolio of his own.
MA(A.(. A *-5!F-L- -F F%(DS
Aailability of a lar&e number of funds can actually mean too much choice for
the inestor. /e may a&ain need adice on how to select a fund to achiee his
objecties, 4uite similar to the situation when he has to select indiidual shares
or bonds to inest in.
B0
#(!5& A(D #8! C-S!
Mutual funds are a ictim of their own success. @hen a lar&e body like a fund
inests in shares, the concentrated buyin& and sellin& often results in aderse
price moement i.e. at the time of buyin&, the fund ends up payin& a hi&h price
and by sellin& it reali'es a lower price. 5or obious reasons, this problem is
een more seere for funds inestin& in small capitali'ation stocks. /oweer,
&ien the lar&e si'e of debt market, e(cludin& 9$I, most debt funds do not
face this problem.
CHA(.# -F (D#8 C-M*-S!-(
$he indices chan&in& oer the world to reflect chan&in& market conditions.
$here is an inherent suriorship bias in this process, with the bad stocks
bided out and replaced by emer&in& blue chips. $his is a seere problem in
India with the sense( hain& bein& chan&in& twice in last B years, with each
chan&e bein& 4uite substantial. Another reason for chan&e inde( composition
is Mer&ers and Ac4uisitions. $he wei&ht a&e of the shares of a particular
company in the inde( chan&es if it ac4uires a lar&e company not a part of the
inde(.
B:
-y I"ve&tor Nee*& Mutua+ Fu"*
Mutual funds offer benefits, which are too si&nificant to miss out. Any inestment has
to be jud&ed on the yardstick of return, li4uidity and safety. #onenience and ta(
efficiency are the other benchmarks releant in mutual fund inestment. In the
wonderful &ame of financial safety and returns are the tows opposite &oals and
inestors cannot be nearer to both at the same time. $he cru( of mutual fund inestin&
is aera&in& the risk.
Many inestors possibly don3t know that considerin& returns alone, many mutual
funds hae outperformed a host of other inestment products. Mutual funds hae
historically deliered yields aera&in& between <J to 0BJ oer a medium to lon&
time frame. $he duration is important because like wise, mutual funds return taste
bitter with the passa&e of time. Inestors should be prepared to lock in their
inestments preferably for : years in an income fund and B years in an e4uity funds.
,i4uid funds of course, &enerate returns een in a short term.
B?
Mutua+ Fu"* Ri&.
Mutual funds face risks based on the inestments they hold. 5or e(ample, a bond fund
faces interest rate risk and income risk. Bond alues are inersely related to interest
rates. If interest rates &o up, bond alues will &o down and ice ersa. Bond income is
also affected by the chan&es in interest rates. Bond yields are directly related to
interest rates fallin& as interest rates fall and risin& as interest rates.
.imilarly, a sector stock fund is at risk that its price will decline due to deelopments
in its industry. A stock fund that inests across many industries is more sheltered from
this risk defined as industry risk.
5ollowin&s are &lossary of some risks to consider when inestin& in mutual funds.
Country 5is:
$he possibility that political eents Fa war, national election+, financial problems
Frisin& inflation, &oernment default+, or natural disasters will weaken a country3s
economy and cause inestments in that country to decline.
ncome 5is:
$he possibility that a fi(ed*income fund3s diidends will decline as a result of fallin&
oerall interest rates.
Mar:et 5is:
$he possibility that stock fund or bond fund prices oerall will decline oer short or
een e(tended periods. .tock and bond markets tend to moe in cycles, with periods
when prices rise and other periods when prices fall.
BB
Ri&. Retur" Re,ar* i" Mutua+ Fu"*
,i4uid 5und
.hort $erm
5und
Income 5und
MI-
Balance 5und
"4uity 5und
(Fig no ;: - 5is: 5eturn in Mutual Fund)
$his &raph shows risk and return impact on arious mutual funds. $here is a direct
relationship between risks and return, i.e. schemes with hi&her risk also hae potential
to proide hi&her returns.
BD
TYPES OF
MUTUAL FUNDS
B>
Ty!e& o% Mutua+ Fu"*
$here are a wide ariety of Mutual 5und schemes that cater to your needs, whateer
your a&e, financial position, risk tolerance and return e(pectation. @hether as the
foundation of your inestment pro&ram or as a supplement, Mutual 5und schemes can
help you meet your financial &oals. $he different types of Mutual 5unds are as
follows)
Diversified #<uity Mutual Fund Sc1em!
A mutual fund scheme that achiees the benefits of diersification by inestin& in
the stocks of companies across a lar&e number of sectors. As a result, it minimi'es
the risk of e(posure to a sin&le company or sector.
Sectoral #<uity Mutual Fund Sc1eme
A mutual fund scheme, which focuses on inestments in the e4uity of companies
across a limited number of sectors P usually one to three.
nde= Funds
$hese funds inest in the stocks of companies, which comprise major indices such
as the B." .ense( or the .A- #7O 7ifty in the same wei&ht a&e as the
respectie indices.
!a= Saving #<uity Sc1emes
.chemes inestin& predominantly in e4uity which offer ta( rebates to inestors
under specific proisions of the Income $a( Act, 1<D1 as the 8oernment offers
ta( incenties for inestment in specified aenues. ".&. "4uity ,inked .ain&s
.chemes F",..+. #urrently rebate uLs EE can be aailed unto a ma(imum
inestment of !s 1=,===. A ,ock*in of : years is mandatory.
BE
Mont1ly ncome *lan Sc1eme
A mutual fund scheme which aims at proidin& re&ular income Fnot necessarily
monthly, donKt &et misled by the name+ to the unit holder, usually by way of
diidend, with inestments predominantly in debt securities Fup to <BJ+ of
corporate and the &oernment, to ensure re&ularity of returns, and hain& a
smaller component of e4uity inestments FBJ to 1BJ+ to ensure hi&her return.
ncome sc1emes
Debt oriented schemes inestin& in fi(ed income securities such as bonds,
corporate debentures, 8oernment securities and money market instruments.
Floating-5ate De3t Fund
A fund comprisin& of bonds for which the interest rate is adjusted periodically
accordin& to a predator*mined formula, usually linked to an inde(.
.ilt Funds
$hese funds inest e(clusiely in &oernment securities.
'alanced Funds
$he aim of balanced funds is to proide both &rowth and re&ular income as such
schemes inest both in e4uities and fi(ed income securities in the proportion
indicated in their offer documents. $hey &enerally inest ?=*D=J in e4uity and
debt instruments.
B<
Structure o% Mutua+ Fu"*
(Fig n& 0 - St(u$tu(e &) Mutu'. Fund)
5und .ponsor
Any person or corporate body that establishes the 5und with a net worth of !s. 1=
crores and has paid out consistent returns to its inestors for last three years
consistently and re&isters it with ."BI can be a fund sponsor. $he fund sponsor forms
a trust and appoints board of trustees. /e appoints #ustodian and Asset Mana&ement
#ompany FAM#+ either directly or throu&h trust in accordance with ."BI re&ulations.
."BI re&ulations also define that a sponsor must contribute at least ?= J to the net
worth of the asset mana&ement company.
AMC
%nit1olders
Savings
%nits
!rust nvestments
!rust
AMC
Custodian
5egistrar
S#'
5eturns
D=
$rustees
$rust is created throu&h the document called $rust deed that is e(ecuted by the fund
sponsor and re&istered with ."BI. Board of trustees* a body of indiiduals or a trust
company*a corporate body may mana&e the trust cum Mutual 5und. $hese are
protector of unit holders interests.0L: of the trustees will be indiiduals and will not be
associated with the sponsors.
Follo0ing are t1e rig1ts of trustees:
Approe each of the schemes floated by the assets Mana&ement #ompany.
!i&ht to re4uest any necessary information from assets Mana&ement
#ompany.
!i&ht to take correctie action if they beliee that of fund3s business.
!i&ht to dismiss the assets Mana&ement #ompany.
"nsure that any shortfall in net worth of the assets Mana&ement #ompany
is made up.
Follo0ing are t1e o3ligations of trustees:
"nter in to an inestment mana&ement a&reement with the assets
Mana&ement #ompany.
"nsure that the fund3s transactions are in accordance with the trust
deed.
5urnish to ."BI on a half yearly basis, a report on the fund3s actiities.
D1
"nsure that no chan&e in the fundamental attributes of any scheme or
the trust or any other chan&e, which would affect the interest of unit
holder, happens with informin& to unit holder.
!eiew the inestor complaints receied and redressed of the same by
assets Mana&ement #ompany.
Asset Mana&ement #ompany
$his acts as inestment mana&er of the trust under the board superision and direction
of trustees. In has to be approed and re&istered with ."BI.
$his will float and mana&e different inestment schemes in the name of trust and in
accordance with ."BI re&ulations. $hese acts in the interest of holders and reports to
the trustees. At least B=J of the directors on the board are independent of the sponsor
or the trustees.
Follo0ing are t1e o3ligations of Assets Management Company:
5loat inestment schemes only after &ettin& approal from the trustees and
."BI.
.end 4uarterly reports to trustees.
Make the re4uired disclosures to the inestors in the area such as
calculation of 7A6 and repurchase price.
Must maintain a net worth of at least !s.1= crores at all the times
@ill not purchase or sale securities throu&h any broker with the brokera&e
of B J or more of the a&&re&ate purchases and sale of securities made
by the Mutual 5und in all its schemes.
Assets Mana&ement #ompany cannot act as trustees of any other Mutual
5und.
D0
Do not undertake any other actiity conflictin& with mana&in& the fund.
Follo0ing are t1e 3odies appointed 3y t1e trustees>AMC,
#ustodian is the responsible person for physical handlin& and safe
keepin& of the securities. /e should be independent of the sponsor and
re&istered with ."BI.
Indian capital market is moin& away from physical certificates for
securities to demateriali'ed form with a depository. /e holds
demateriali'ed security holdin&s of Mutual 5und.
#ustodian
%ften an independent or&ani'ation, it takes custody of securities and other assets of
mutual fund. Its responsibilities include receipt and deliery of securities, collectin&
income*distributin& diidends, safekeepin& of the units and se&re&atin& assets and
settlements between schemes. $heir char&es ran&e between =.1B*=.0 percent of the net
alue of the holdin&. #ustodians can serice more than one fund.
Depository
Indian capital markets are moin& away from hain& physical certificates for
securities, to ownership of these securities in Vdemateriali'ed3 form with a Depository.
$hus, a mutual fund3s demateriali'ed securities holdin&s will be held by a Depository
throu&h a Depository -articipant. A fund3s physical securities will continue to be held
by a #ustodian. $hus, delieries of a fund3s securities are &ien or receied by a
custodian or a depository participant, at the instruction of the AM#, althou&h under
the oerall direction and responsibility of the $rustees.
D:
!1e ot1er various assets management companies? details are as
under: -
A) 1'n2 s%&ns&(ed
a. B%B Asset Mana&ement #o. ,td.
b. #anbank Inestment Mana&ement .erices ,td.
c. -7B Asset Mana&ement #o. ,td.
d. .BI 5unds Mana&ement ,td.
e. 9$I Asset Mana&ement #ompany F-+ ,td.
1) Instituti&ns
a. 8I# Asset Mana&ement #o. ,td.
b. IDBI -rincipal Asset Mana&ement #o. ,td.
c. I, A 5. Asset Mana&ement #o. ,td.
d. ;eean Bima .ahayo& Asset Mana&ement #o. ,td.
C) P(i'te Se$t&(
3- F&(eign
a. -rincipal Asset Mana&ement #o. ,td.
b. 5idelity Asset Mana&ement #o. ,td.
4- Indi'n
a. Benchmark Asset Mana&ement #o. ,td.
b. #holamandalam Asset Mana&ement #o. ,td.
c. "scorts Asset Mana&ement ,td.
d. ;.M. #apital Mana&ement ,td.
e. Kotak Mahindra Asset Mana&ement #o. ,td.
f. .undaram Asset Mana&ement #ompany
&. !eliance #apital Asset Mana&ement ,td.
D?
5- 6&int 7entu(es - P(ed&!in'nt., Indi'n
a. Birla .un ,ife Asset Mana&ement -t. #o. ,td.
b. #redit #apital Asset Mana&ement #o. ,td.
c. D.- Merrill ,ynch 5und Mana&ers ,imited
d. 5irst India Asset Mana&ement -riate ,td.
8- 6&int 7entu(es 9 P(ed&!in'nt., F&(eign
a. Alliance #apital Asset Mana&ement FIndia+ -t. ,td.
b. Deutsche Asset Mana&ement FIndia+ -t. ,td.
c. Dundee Inestment Mana&ement A !esearch F-t.+ ,td.
d. /.B# Asset Mana&ement FIndia+ -riate ,td.
e. I78 Inestment Mana&ement FIndia+ -t. ,td.
f. Mor&an .tanley Inestment Mana&ement -t. ,td.
&. -rudential I#I#I Mana&ement #o. ,td.
h. .un 5 A # Asset Mana&ement FI+ -t. ,td
I. $empleton Asset Mana&ement FIndia+ -t. ,td.
DB
R$4,50&*6.
A)7$%&)
DD

AM5I FAssociation of Mutual
fund in India+
AM5I not a .elf !e&ulatory %r&ani'ation F.!%+.
It3s made to promote mutual fund in the masses and &ie recommendation in
order to uphold the interest of the inestor.
O"#e$ties &) AMFI:-
$o define and maintain hi&h professional and ethical standards in all areas
of operation of mutual fund industry

$o recommend and promote best business practices and code of conduct to
be followed by members and others en&a&ed in the actiities of mutual
fund and asset mana&ement includin& a&encies connected or inoled in
the field of capital markets and financial serices.

$o interact with the .ecurities and "(chan&e Board of India F."BI+ and to
represent to ."BI on all matters concernin& the mutual fund industry.

$o represent to the 8oernment, !esere Bank of India and other bodies
on all matters relatin& to the Mutual 5und Industry.

$o deelop a cadre of well*trained A&ent distributors and to implement a
-ro&ramme of trainin& and certification for all intermediaries and other
en&a&ed in the industry.

$o undertake nation wide inestor awareness -ro&ramme so as to promote
proper understandin& of the concept and workin& of mutual funds.

D>
."BI F.ecurity "(chan&e Board
of India+
.ecurities and "(chan&e Board of India FQ."BIQ+, the #apital Markets re&ulator has
clearly defined rules, which &oern mutual funds. $hese rules relate to the formation,
administration and mana&ement of mutual funds and also prescribe disclosure and
accountin& re4uirements. .uch a hi&h leel of re&ulation seeks to protect the interest
of inestors.
All Mutual 5unds are re&istered with ."BI and they function within the proision of
strict re&ulations desi&ned to protect the interests of inestors. $he operations of
Mutual 5unds are re&ularly monitored by ."BI.
!BI F!esere Bank of India+
!esere bank of India was the re&ulator of Mutual 5und before ."BI. It re&ulated
mutual fund initially and there were only few schemes in the market. But now with
comin& of ."BI, it has now become the main re&ulator of the Mutual 5und. !BI now
only &oerns Bank .ponsored Mutual 5und.
Ministry of 5inance
$he Ministry of 5inance, which is char&ed with implementin& the &oernment
policies, ultimately superises both the !BI and the ."BI. Besides bein& the ultimate
policy makin& and superisin& entity, the M%5 has also been playin& the role of an
Appellate Authority for any major disputes oer ."BI &uidelines on certain specific
capital market related &uidelines P in particular any cases of insider tradin& or
mer&ers and ac4uisitions.
DE
#ompany ,aw Board
Mutual fund Asset Mana&ement #ompanies and corporate trustees are companies
re&istered under the #ompanies Act, 1<BD, and are therefore answerable to re&ulatory
authorities empowered by the #ompanies Act.
$he primary le&al interface for all companies is the !e&ister of #ompanies F!o#+.
$he Department of #ompany Affairs in turn superises ro#s. $he D#A forms part of
#ompany ,aw Board, which is part of the Ministry of ,aw and ;ustice of the 8ot. of
India.
$he !o# ensures that the assets mana&ement company or the $rustee #ompany as the
case may be is in compliance with all #ompanies Act proisions. All assets
mana&ement company accounts and records are filed with the !oc, who may demand
additional information and documents from the company. $he !o# plays the role of a
watchdo& with respect to re&ulatory compliance by companies.
$he #ompany ,aw Board F#,B+ is the ape( re&ulatory authority under the
#ompanies Act. @hile the #,B &uides the D#A, another arm of the #,B called the
#ompany ,aw Bench is the Appellate Authority for corporate offences.
$he #ompany ,aw Board F#,B+ is a body specially constituted by the #entral
8oernment for carryin& out judicial proceedin&s with respect to company affairs.
.ince mutual fund assets Mana&ement #ompany are companies, the #,B3s role
assumes importance.
As the members of assets mana&ement companies or $rustee companies will usually
be the sponsors and their joint enture partners or associates, it is unlikely that mutual
fund inestors will hae anythin& to do with any of these re&ulators. $he authorities
would &enerally re&ulate the assets mana&ement companies whose shareholders may
hae recourse to them in specific cases.
D<
Inestors !i&hts
-roportionate ri&ht to beneficial ownership of scheme3s assets
!i&ht to obtain information from trustees
"ntitled to receie diidend warrants within := days of declaration of diidend
Inspect major documents of the fund
Appointment of the assets mana&ement company can be terminated by >BJ of
the unit holders of the scheme present and otin&
!i&ht to approe of chan&es in fundamental attributes of a close ended scheme
F>B J of unit holders should approe+ * ri&ht to be informed so in open ended
schemes so that they can redeem
!i&ht to receie a copy of annual financial statements of fund and periodic
transaction statements
>BJ of the unit holders can resole to wind up the scheme
,e&al ,imitations to Inestors
9nit holders can not sue the trust
#an initiate le&al proceedin&s a&ainst trustees
.ponsor of mutual funds hae no obli&ation to meet any shortfall in the assured
return * unless e(plicitly &uaranteed in the offer document
7o ri&hts to a prospectie inestor
Inestor %bli&ations
#arefully study the offer document before inestin&
Monitor his inestment in a scheme by referrin& financial statements,
performance updates and research reports sent by the assets mana&ement
company.
>=

RESEARCH
>1
P,67*)$ *+ &8$ R$)$06%8
@ith liberali'ation, priati'ation and &lobali'ation there has been a major chan&e in
the Indian Mutual 5unds Industry. $he momentum is on and one is sure to see similar
hectic actiity at the offices of the new entrants especially after the <=3s as priate
sector &ained entry in the Indian markets.
@ith the priate sector penetration, a lar&e number of schemes hae also been
introduced due to which the aera&e consumer has become ary sensitie to the new
schemes comin& its way. .o to ensure about the arious consumer attitudes, a surey
was undertaken.
De facto, to ensure what the 1consumer thinks2 A 1what it thinks the best2 we
undertook a consumer surey, to &et a clear picture of the future of the Mutual 5unds
companies who are busy wooin& the customers, with their lucratie schemes, to
surie the rat race A emer&e as no.1 in this field.
>0
Re&earc Ob/ective
!esearch %bjecties addresses the purpose of the inesti&ation. It is here that you
layout e(actly what is bein& planned by the proposed research. $he !esearch
%bjecties flows naturally from the problem statement, &iin& the sponsor specific,
concrete, and achieable &oals. It is best to list the objecties either in order of
importance or in &eneral terms first, moin& to specific terms. !esearch %bjectie is
the basis for jud&in& the !esearch process. It is the final step &iin& e(act definition
of problem.
Analy@ing mutual fund a0areness in retail investors of HDFC
assets Management Company in Surat,
>:
RESEARCH
METHODOLODY
>?
!esearch methodolo&y is a systematic plan or schedule or pro&ram of the research
done. It describes all the procedures of the research.
Re&earc De&i0"
!esearch desi&n can be described as an out line of a research project workin& or a
pattern. In a research desi&n there are series of prior decision that to&ether proide
a master plan for completin& a research project. !esearch desi&n is proed to be a
brid&e between what has been established and what is to be done in conduct of the
studies. !esearch desi&n should be compressie and it should proide which
method to be used and what work to be done.
!esearch desi&n describes as a master plan a series of key decisions that seres a
model for conductin& a research project. $here are the main components of
research desi&n.
%bjectie of research
Data inputs
Analysis of data collected
T*e (ese'($* design +'s exploratory type and the focus was on &ettin& mutual
fund3s employees iews for arious products, e(pectations from market.
#=ploratory 5esearc1:
"(ploratory study &oes beyond description and attempts to e(plain the reasons for the
phenomenon that the descriptie study only obsered. $he researcher uses theories or
at least hypotheses to account for the forces that caused a certain phenomenon to
occur.
>B
Source& o% Data
$he &atherin& of data may ran&e from a simple obseration at one location to a
&randiose surey of multinational corporations at sites in different parts of the world.
$he method selected will lar&ely determine how the data are collected. DA$A is the
facts presented to the researcher from the study3s enironment. #haracteristics of the
data are as follows)
Data are more metaphorical than real
Data are processed by our senses*often limited in comparison to
$he senses of other liin& or&anisms.
#apturin& data are said to be trustworthy because they may be
6erified.
Data classify their erity by closeness to the phenomena
$here are two kinds of data that can be collected for research purpose. Based on the
re4uirement in the research appropriate data is collected. Both the kinds of data are
shown below in the fi&ure)
"rror) !eference source not found

1+ -rimary data source
-rimary data are collected and &athered for the first time. -rimary data are sou&ht for
their pro(imity to the truth and controls oer error. Adanta&es of primary data are)
>D
!esearchers can collect precisely the information they want.
$hey usually can specify the operational definitions used and can eliminate, or
at least monitor and record the e(traneous influences on the data as they are
&athered.
0+ .econdary data source
.omeone else collects secondary data. .o, it becomes secondary information for the
research. .econdary data hae had least one leel of interpretation inserted between
the eent and its recordin&. !easons for usin& the secondary data are listed below)
$hey fill a need for specific reference or citation on some point
.econdary data are an inte&ral part of a lar&er research study
.econdary data may be used as the sole basis for a research study, since
In many research situations one cannot conduct primary research
Because of physical, le&al, or cost influences.
Analy'in& the re4uirement of data, it was found that primary data is more important
for achiein& !esearch %bjectie. Primary data is collected with the help of
interviews .
>>
Sam!+i"0 '+a"
#ollectin& the re4uired information from the ri&ht source is ery important. .ources
from which the data are collected differ as per the re4uired of researcher.
Basically there are two types of data collection sources)
1+ .amplin& 9nit)
$he samplin& unit primarily consisted of inestors like businessman, professionals,
salaried employees and others. $he sample unit is taken from the .urat city of 8ujarat
re&ion.
0+ .ample .i'e)
$hou&h lar&e sample &ie more reliable results than small samples but increases the
cost, time and non*samplin& error. Keepin& in iew these constraints 1== respondents
were chosen. Attempts hae been made to see that samples are chosen from different
areas of .urat.
I hae taken 1== responds as a sample si'e for this particular project.
>E
$he followin& table shows area wise distribution of sample si'e.
AREA SAMP:E
9D/7A 1>
M%!AB/A8A, :
ADA;A7 1B
!A7D"! !%AD 1>
!A,@AH .$A$I%7
!%AD B
-A!," -%I7$ B
8/%DD%D !%AD E
-I-,%D 0
MA;9!A8A$" 0
!I78 !%AD ?
B/A8A, ?
KA$A!8AM ?
6A!A#/A 0
#I$H ,I8/$ !%AD D
7A7-9!A 0
-A7D".A!A 1
6"D !%AD 1
-A, 1
B/".$A7 1
TOTA: 3;;
><
Data Co++ectio" Meto*
1 Ti& &te! i"vo+ve& ma.i"0 a very &!eci%ic !+a" about o, you ,i++ co"*uct
your re&earc a"* co++ect your *ata.2
1+ .ureys A Guestionnaires
Survey Th! m!n' %y which quntitti5! r!'!rch i' conduct!d.
$uestionnaire 6 pr!pr!d '!t of qu!'tion' d!'ign!d to g!n!rt! dt
n!c!''ry for ccomp$i'hing th! o%7!cti5!' of th! r!'!rch pro7!ct.
used survey met1od for data collection. (nformtion w' co$$!ct!d %y
personal intervie0s through <uestionnaire,
Fo$$owing typ!' of m!'ur!m!nt 'c$!' w!r! u'!d in th! qu!'tionnir!.
+imp$! ct!gory 'c$!: - 28-29 8-49 8-09 8-/4
)u$tip$! choic! 'ing$! r!'pon'! 'c$!': - 28-&4
)u$tip$! choic! mu$tip$! r!'pon'! 'c$!:-28-19 8-39 8-#9 8-14
E=
DATA ANALYSIS
AND
FINDINGS
E1
G*1 which inestment aenues are you aware ofW
I76".$M"7$ A6A79". 5!"G9"7#H -"!#"7$A8"
"G9I$HLM9$9A, 597D 1== :?.:DJ
-%.$ %55I#" <? :0.:=J
5.D. ED 0<.BBJ
%$/"!. 11 :.><J
100
/4
0&
11
E83(T:;).F.
*<+T <FF(CE
F.D.
<THE-+
(Fig no A: - Define investments avenues)
nterpretation: -
5rom the aboe charts we can interpret that awareness of e4uityLmutual fund, post
office F7.#, K6-, and --5+, fi(ed deposits is more compare to others like 8%6$
I..9"D Instrument, 8%6$ Backed Instrument, !eal "state, &old etc. so /D5#
assets Mana&ement #ompany needs to focus more on those inestors who are more
inest in K6-, 7.#, --5 and fi(ed deposits.
E0
G*0 do you inests in mutual fundW
3
/1
0
20
40
&0
00
100
120
:E+ =<
*5#F#5(C#
(
-

-
F

*
#
-
*
L
#
+!ri!'1
(Fig no "B: - Define investments in mutual fund)
5rom the aboe chart it is &ettin& clear that now a days people are like to inest their
money in mutual fund of different assets mana&ement company, out of 1== people
sampled <> are inestin& in the mutual fund.
H". 7%
<> :
E:
G*: If yes, in which assets class do you want to inest in
Mutual 5undW
$H-". %5 .#/"M". !".-%7." -"!#"7$A8"
"G9I$H ED >0.0>J
D"B$
0> 00.D<J
,IG9ID D B.=?J
-E+*<=+E
0&
21
&
0
20
40
&0
00
100
E83(T: DE>T ,(83(D
SCH#M#S
(
-

-
F

*
#
-
*
L
#
-E+*<=+E
(Fig no "": - Define sc1emes preferred 3y investors)
5rom the aboe chart it is &ettin& clear that from 1== peoples sample EDF>0.0>J+
people are inest in e4uity assets class and 0>F00.D<J+ people choose to inests in
debt class but only just DFB.=?J+ peoples choose to inests in li4uid class.
E?
G*? Do you inest in /D5# assets mana&ement company
,imitedW
H". 7% $%$A,
BD ?? 1==
#&
44
0
10
20
30
40
#0
&0
:E+ =<
*5#F#5(C#
(
-

-
F

*
#
-
*
L
#
+!ri!'1
(Fig no "): - Define investment in HDFC assets Management Company)
From th! %o5! chrt it i' g!tting c$!r tht out of 100 p!op$! 'mp$!d9 #&
p!op$!' r! in5!'t in HDFC ''!t' mng!m!nt compny nd 44 p!op$!'
r! not in5!'t' in HDFC ''!t' mng!m!nt compny.
EB
G*B If yes, in which scheme would you inest in /D5# assets
Mana&ement company limitedW
SCHEMES OF HDFC
NO OF
IN7ESTOERS
"G9I$H 597D ?:
#A-I$A, B9I,D"! 597D 0
-!9D"7#" 597D 1>
$AO .A6"! 597D :B
#%!" A7D .A$",I$" 597D :
$%- 0== 597D 1D
BA,A7#"D 597D 1
8!%@$/ 597D 1D
%$/"!. 597D B
=< <F (=?E+T<E-+
43
2
11
3#
3
1&
1
1&
#
E83(T: F3=D C6*(T6, >3(,DE- F3=D
*-3DE=CE F3=D T6@ +6?E- F3=D
C<-E 6=D +6TE,(TE F3=D T<* 200 F3=D
>6,6=CED F3=D A-<BTH F3=D
<THE-+ F3=D
(Fig no "/: - Define sc1eme in 01ic1 investors invest in HDFC assets
Management Company)
5rom the aboe chart we can see that in /D5# assets Mana&ement #ompany3s
"G9I$H 597D ma(imum number F?:+ of people are inest. In $AO .A6"! 597D
:B number of people inests. In both $%- 0== 597D and 8!%@$/ 597D 1D
numbers of people are inests but in BA,A7#"D 597D, #A-I$A, B9I,D"!
597D, #%!" A7D .A$",I$" 597D only 1,0 and : people are inest so inestors
are not inested in these : schemes. In -!9D"7#" 597D 1> numbers of people are
inested.
ED
G*D By which medium you inest in /D5# assets
MEDIUM OF IN7ESTMENT NO OF PEOP:E
DI.$!IB9$%! E
BA7K ?E
%7,I7" =
0
40
0
0
#
10
1#
20
2#
30
3#
40
4#
#0
D(+T-(>3T<- <=,(=E
M#D%MS
=< <F *E<*,E
=< <F *E<*,E
(Fig no "2: - Define mediums c1oose 3y investors for invest in HDFC
assets management company)
5rom the aboe chart it3s &ettin& cleared that most of the peoples F?E+ are inest by
bank and only E peoples are inest by distributors. 7obody inests throu&h online. .o
here /D5# assets Mana&ement #ompany has to proide facility by which inestors
inest their money with out any middle man in mutual fund schemes throu&h online.
7otes) * here out of 1== responds, ?? responds are not inest in /D5# assets
Mana&ement #ompany. $hese responds are not considered in these 4uestions.

E>
G*> why do you prefer inestin& in /D5# assets
PREFENCE CRITERIA NUM1ER
B"$$"! 597D /%9." ?:
"O#",,"7$ #9.$%M"! ."!6I#"
-!%6ID"! 1B
#%7.I.$A7$ !"$9!7 ??
%$/"!. 1
=3)>E-
43
1#
44
1
>ETTE- F3=D
H<3+E
E@CE,,E=T
C3+T<)E-
+E-?(CE
*-<?(DE-
C<=+(+T6=T
-ET3-=
<THE-+
FFig no "7: - Define *reference criteria of investors)
5rom the aboe pie * chart it can be seen that majority of the people that is ?? peoples
&ie first rank to consistent return and ?: peoples inest in /D5# assets mana&ement
company because /D5# assets mana&ement company is a better fund house and 1B
peoples beliees that /D5# assets Mana&ement #ompany proides "O#",,"7$
#9.$%M"! ."!6I#".
EE
G*E In which type of product Lschemes would you prefer while
Inested in e4uity schemes of /D5# assets mana&ement
#ompany limitedW
TYPES OF SCHEMES RESPONSE
%-"7 "7D"D B:
#,%." "7D"D :
-E+*<=+E
#3
3
0
10
20
30
40
#0
&0
<*E= E=DED C,<+E E=DED
!&*#S -F SCH#M#S
(
-

-
F

*
#
-
*
L
#
-E+*<=+E
(Fig no ";: - Define type of product >sc1emes investors prefer for
investments)
5rom the aboe chart it is &ettin& clear that most of peoples FB:+ prefer to inest in
%-"7 "7D"D e4uity schemes and only just : peoples want to inest in #,%."
"7D"D e4uity schemes of /D5# assets Mana&ement #ompany.
7otes) * here out of 1== responds, ?? responds are not inest in /D5# assets
Mana&ement #ompany. $hese responds are not considered in these 4uestions.
E<
G*< do you know about on &oin& new fund offer of /D5#
Assets Mana&ement company limitedW
A<ARENESS OF NFO NUM1ER PERCENTAGE
H". BE BEJ
7% ?0 ?0J
$%$A, 1== 1==J
=3)>E-
#0
42
:E+
=<
(Fig no "+: - Define a0areness level a3out on going (F- of HDFC assets
Management Company,)
$he aboe pie * chart shows that around BEJ people aware of on &oin& new fund
offer of /D5# assets Mana&ement #ompany and only ?0J people are unaware from
on &oin& new fund offer of /D5# assets mana&ement company.
<=

FINDINGS
<1
Findings
Almost BDJ are inestin& in /D5# assets mana&ement company3s schemes.
%ut of the total respondent almost :=J said that they inest in fi(ed deposit
and Insurance. @here as :?J said that they inest in .hares and mutual funds,
where as :0J says that they inest in post office schemes.
<>J of the inestor was found who is inested their sain&s in different
schemes of mutual fund.
B: respondents prefer to inest in a open ended schemes of /D5# assets
mana&ement company, where as remainin& only : respondents prefer to inest
in a close ended of /D5# assets mana&ement company.
It is found that awareness leel about Mutual 5unds is <>J in .urat city of
8ujarat.
%ut of the total respondent >0.0>J are inestin& in e4uity schemes. @here as
remainin& 00.D<J prefer debt and B.=?J prefer to inest in li4uid schemes.
/D5# assets Mana&ement #ompany are also hi&hly popular for their
consistent return and ?: responds beliees that /D5# assets Mana&ement
#ompany is better fund house. @hile only just 1B responds beliees that
/D5# assets Mana&ement #ompany proides "O#",,"7$ #9.$%M"!
."!6I#".
<0
%ut of the total respondents almost ?E responds are inestin& throu&h bank,
only E responds inestin& their money by distributor and nobody inested by
online.
$he BEJ of the respondent were aware about the on&oin& 75% of /D5#
assets mana&ement company and ?0J were not aware about the on&oin& 75%
of /D5# assets mana&ement company.
In /D5# assets Mana&ement #ompany3s "G9I$H 597D ma(imum number
F?:+ of people are inested and In $AO .A6"! 597D :B number of people
are inests.
<:
LIMITATIONS
<?
Limitations of research
$his e(ploratory research is done focusin& on the inestment scenario of .urat
city of 8ujarat re&ion only and therefore findin&s and su&&estions &ien on the
basis of this research and cannot be considered for the entire Mutual 5und
Industry of India.
.ome of the people, out of arious sectors that I had isited for study, did not
&ie me cooperatie response.
Due to small market and time limit I could take only 1== responses.
Another limitation is that due to lack of knowled&e and education many
inestors don3t know the basic ideas behind mutual fund.
Due to $ime constraint I could not analy'e more.
My own ine(perience in research area mi&ht hae affected the study.
<B
CONCLUSIONS
<D
Conclusions
/alf of the respondents are inestin& in different schemes of mutual fund
companies.
$he inestors prefer inestin& more in banks and post office, which shows that
inestors want security, and assured returns.
%thers than Banks and post office the ne(t preference of inestors who &o for
risky preposition in shares and Mutual 5unds. $hat is basically due to
misconception that Mutual 5und #ompanies usually inest in e4uity market,
which shakes trust of people in Mutual 5und.
Majority of inestors inested in open*ended schemes.
$he awareness leel about /D5# assets Mana&ement #ompany is moderate
but still the awareness should be created because ??J peoples still not inest
in /D5# assets Mana&ement #ompany.
As the inestor prefers safe inestment and want consistent return, they inest
in debt schemes F00.D<J+.
$he inestors prefer /D5# assets Mana&ement #ompany more because of the
ta( benefit and consistent return.
Mutual funds are also preferred because of the cost effectieness and hi&her
income by inestin& in e4uity schemes.
$he banks mostly make the inestments throu&h the a&ent3s followed.
<>
-rofessional and Business class, which is considered to be the most
knowled&eable class of the re&ion prefers Mutual 5unds less compare to
serice class.
$he time frame of the inestment by majority of the inestors is open*ended
schemes in which their money is not locked for : to B years.
<E
RECOMMENDATION
S
<<
Recommendations
$he company should try to make aware people about their different schemes
throu&h the road showC seminars and presentation that it is not just e4uity
based schemes but also debt and li4uid or balanced schemes also promoted by
company. #ompany has to put hoardin&s, banners, pamphlets in that area
where peoples can watch easily.
$he customers should be made aware that if the time frame of the inestment
is more than : years "4uity option is the best tool for inestin& in mutual fund
by this inestors &ettin& &ood and hi&h returns for their inestments.
$he company should be conductin& special trainin& and motiation
-ro&ramme for their distributors and also for inestors so that they are bein&
motiated to work, their 4uality of performance and contribution in sales is
maintained.
#ompany has to proide application forms and other promotional materials to
their distributors time to time and company has to maintain better relationship
with their distributors by these they can &ie &ood contribution in inestments.
7one of responds inest their money in different schemes of company
By %nline, so company has opportunity to launch online serices for their
distributors and retail inestors.
1==
#ompany3s core and satellite fund, balanced fund, capital builder fund are
preferred by ery few inestors because this schemes not perform well so
company has to think about their companies in which they inest inestor3s
money so they hae to chan&e portfolio of inestments.
Most of the people still preferred to inest in post office schemes and fi(ed
deposits so company has to focus on these inestors.
1=1
ANNEXURE
1=0
3ue&tio""aire
=6)E: -
6DD-E++: -
C<=T6CT =<: 2<4 2-4 2)4

14 Bhich in5!'tm!nt 5!nu!' r! you wr! ofC
Equity ;)utu$ fund
*o't <ffic! 2=+C9 D?*9 **F4

FiE!d D!po'it'
<th!r'
(f oth!r' p$!'! 'p!cify
24 Do you in5!'t in mutu$ fund'C
:!' =o

34 (f y!'9 in which ''!t' c$'' do you wnt to in5!'t in mutu$ fund'C

Equity D!%t ,iquid

44 Do you in5!'t in HDFC mutu$ fundC
:!' =o

1=:
#4 (f y!'9 in which 'ch!m! wou$d you in5!'t in HDFC )3T36, F3=DC
Equity
Cpit$ %ui$d!r
*rud!nc! fund
TE '5!r

Cor! F 't!$$it!
Top 200 fund
>$nc!d fund
Arowth

<th!r'

&4 >y which m!dium do you in5!'t in HDFC mutu$ fund 'ch!m!C
Di'tri%utor >nG <n$in!

14 Bhy do you pr!f!r in5!'ting in HDFC )FC

>!tt!r fund hou'!
EEc!$$!nt cu'tom!r '!r5ic! pro5id!r
Con'i't!nt r!turn
<th!r

(f oth!r p$!'! 'p!cify
04 Bhich typ! of product;'ch!m! wou$d you pr!f!r whi$! in5!'ting in Equity
+ch!m! of HDFC mutu$ fundC

<p!n-!nd!d C$o'! !nd!d
/4 Do you Gnow %out on going n!w fund off!r' of HDFC 6)CC

:!' =o
1=?
-!mrG' if ny oth!r p$!'! 'p!cifi!': -
ThnG you for your tim!.
G+o&&ary
(et Asset 4alue ((A4)
7et Asset 6alue is the market alue of the assets of the scheme minus its
liabilities. $he per unit 7A6 is the net asset alue of the scheme diided by the
number of units outstandin& on the 6aluation Date.
Sale *rice
$he price you pay when you inest in a scheme. Also called %ffer -rice. It
May include a sales load.
5epurc1ase *rice
$he price at which a close*ended scheme repurchases its units and it may
Include a back*end load. $his is also called Bid -rice.
5edemption *rice
$he price at which open*ended schemes repurchase their units and close*
"nded schemes redeem their units on maturity. $hese prices are 7A6
!elated.

5epurc1ase or C'ac:-end? Load
A char&e collected by a scheme when it buys backs the units from the unit
1=B
/olders.
#=pense 5atio:
$he "(penses of a scheme include mana&ement fees and all the fees associated with
the schemeKs daily operations. "(pense !atio refers to the annual percenta&e of fundKs
assets that is paid out in e(penses and can affect the performance of the scheme.
#=it Load:
It is the load char&ed by the fund when one redeems the units from the fund. It
reduces the price of the units to less than the 7A6 and is e(pressed as a percenta&e of
7A6.
Face 4alue:
$he ori&inal issue price of one unit of a scheme, &enerally !s 1=.
Loc:-in period:
$he coolin& period after inestment in fresh units durin& which the inestor
#annot redeem the units.
(o Load:
It refers to the fund that does not char&e any load for buyin& or sellin& its units, i.e.
the inestor can transact at the 7A6.
1=D
)i&t o% tab+e
.r. 7o. 7ame of $able -a&e 7o.
1 %ffices of /D5# assets mana&ement company limited 1>
0 %ther arious assets mana&ement companies3 details D?
: Area wise distribution of sample si'e. ><
? Define inestments aenues E0
B Define inestments in mutual fund E:
D Define schemes preferred by inestors E?
>
Define inestment in /D5# assets mana&ement
company
EB
E
Define scheme in which inestors inest in /D5#
assets mana&ement company
ED
<
Define medium choose by inestors for inest in /D5#
E>
1= Define -!"5"7#" #!I$"!IA of inestors EE
11
Define type of product Lschemes inestors prefer for
inestments.
E<
10
Define awareness leel about on &oin& 75% of /D5#
assets mana&ement company.
<=
1=>
)i&t o% Gra!
S(- N&- N'!e &) G('%* P'ge N&-
1
%ffice locations of /D5# Assets Mana&ement
#ompany
00
0 Different $ypes of -roducts 0?
: 8rowth of Asset %er $he year :<
? $ypes of customers ?=
B Mutual 5und #ycle ?<
D !isk !eturn in Mutual 5und BD
> .tructure %f Mutual 5und D=
E #lassification %f Data >D
< Define inestments aenues E0
1= Define inestments in mutual fund E:
11 Define schemes preferred by inestors E?
10 Define inest in /D5# assets mana&ement company EB
1:
Define scheme in which inestors inest in /D5#
ED
1?
Define medium choose by inestors for inest in /D5#
E>
1B Define -reference criteria of inestors EE
1D
Define type of product Lschemes inestors prefer for
inestments.
E<
1>
Define awareness leel about on &oin& 75% of /D5#
assets mana&ement company.
<=

1=E
4ib+io0ra!y
Books
Cooper and sc1inder Research Methodology =!w D!$hi Tt
)cArw-Hi$$ ,td 2001
Fct 'h!!t of HDFC ''!t' )ng!m!nt Compny $imit!d.
www.hdfcfund.com
www.mfiindi.com
www.5$u!r!'!rchon$in!.com
www.mon!ycontro$.com
@ebsites
1=<
CERTIFICATE
$his is to certify that Mr. 1'd'!i ='.%es* D- has satisfactorily completed the project
work entitled, >Mutu'. )und A+'(eness in Ret'i. Inest&(s O) HDFC Assets
!'n'ge!ent $&!%'n, in Su('t? 1'sed on the declaration made by the candidate
and my association as a &uide for carryin& out this work, I recommended this project
report for ealuation as a part of the MBA pro&rammer of 6eer 7armad .outh
8ujarat 9niersity.
-lace) XXXXXXXXXXXXXXX
Date) FDr. !. .. .hah+
$his project is forwarded for ealuation to the 6eer 7armad .outh 8ujarat
9niersity.
-lace)
Date) XXXXXXXXXXXXXXXXXXXX
Director of 8!IM.
FDr. !. .. .hah+
11=
111

HDFC Operations Management

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