This document provides information about Shiva Nihar's summer internship report on mutual funds with HDFC Ltd. It includes a title page, certificate from his internal guide, acknowledgements, declaration, table of contents, and introduction chapter. The introduction provides an overview of mutual funds, including what they are, their advantages, categories, and organizational structure. It explains that a mutual fund pools money from investors and invests it on their behalf in stocks, bonds, and other securities. The main advantages discussed are diversification, professional management, and lower costs through bulk transactions.
This project report has been prepared as per the requirement of the syllabus of
MBA course structure under which the students are the required to undertake
project.
It was a first hand experience for us as that we were exposed to the professional
set-up and were facing the market, which was really a great experience.
During project period, I had very touching experiences. When business is involved,
experiences counts a lot, as we know, experience are an instrument, which leads
towards success.
I have found all primary data and secondary data for this project by my own efforts and the all data are 100% true according to my summer internship experience..Thanks
A STUDY ON INVESTOR PERCEPTION OF THE FINANCIAL ADVISORY SERVICES OF PRUDENT CAS LTD. FOR MUTUAL FUNDS, A STUDY ON INVESTOR PERCEPTION OF THE FINANCIAL ADVISORY SERVICES FOR MUTUAL FUNDS..
This project report has been prepared as per the requirement of the syllabus of
MBA course structure under which the students are the required to undertake
project.
It was a first hand experience for us as that we were exposed to the professional
set-up and were facing the market, which was really a great experience.
During project period, I had very touching experiences. When business is involved,
experiences counts a lot, as we know, experience are an instrument, which leads
towards success.
I have found all primary data and secondary data for this project by my own efforts and the all data are 100% true according to my summer internship experience..Thanks
A STUDY ON INVESTOR PERCEPTION OF THE FINANCIAL ADVISORY SERVICES OF PRUDENT CAS LTD. FOR MUTUAL FUNDS, A STUDY ON INVESTOR PERCEPTION OF THE FINANCIAL ADVISORY SERVICES FOR MUTUAL FUNDS..
An Overview of Mutual funds here I tried to explain. Hope this is helpful to people who are newly learning about mutual fund.
Most of the things I explaiend in a simplified manner.
for any help mail me at: basunaik221@gmail.com
The report is all about the consumer perception towards mutual fund in delhi NCR region.
The data analysis is on the the basis questionnaire which helps to get the proper result.
various tools are being used for research.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
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how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
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@Pi_vendor_247
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USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
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how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
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how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
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@Pi_vendor_247
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The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
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Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
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If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
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Project report on mutual funds
1. 1 | P a g e
A SUMMER INTERNSHIP ON
“MUTUAL FUNDS”
WITH REFERENCE TO
HDFC Ltd
A Internship Report submitted to
ST.MARTIN’S ENGINEERING COLLEGE, SECUNDERABAD
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted By
Mr. SHIVA NIHAR
Reg. No: 19K81E0046
Under the guidance of
MRS.B.MOUNIKA
Asst. Professor, MBA DEPARTMENT
2. 2 | P a g e
St. Martin’s Engineering College
An Autonomous Institute
Approved by AICTE / Affiliated to JNTUH, Hyderabad / NAAC-Accredited ‘A+’ Grade
2(f) & 12(B) status (UGC) / ISO 9001:2008 Certified / NBA Accredited / SIRO (DSIR) / UGC-Paramarsh
Recognized Remote Center of IIT, Bombay Dhulapally, Secunderabad – 500100
www.smec.ac.in
CERTIFICATE
This is certify that the summer internship report submitted by Mr. SHIVA NIHAR with registration No
19K81E0046 in partial fulfillment of the requirement for the degree of MASTER OF BUSINESS
ADMINISTRATION in ST.MARTIN’S ENGINEERING COLLEGE of our knowledge the work
presented in this report has not been submitted to any other university or institute for the award of any degree.
MRS.B.MOUNIKA
Assistant Professor MBA
Internal Guide
External Examiner
Dr. Y.VENKATARANGAIAH.
HOD, Dept. of MBA
SMEC
3. 3 | P a g e
ACKNOWLEDGEMENTS
I express my sincere thanks to Mr. M. LAKSHMAN REDDY, Chairman of St. Martin’s
Engineering College, DR. SANTOSH KUMAR PATRA, Principal of SMEC, DR.Y.VENKATA
RANGAIAH, HOD of SMEC MBA, Secunderabad, had supported me in taking up and completion of my
summer internship.
I wish to express profound gratitude to my faculty member and my Internship guide Dr/Mr/Mrs/Ms.
XXXXX for his guidance and timely suggestions, inspiration and encouragement throughout the period of
work right from the selection of topic till the successful completion of my Internship work.
I express my sincere and wholehearted thanks to my company guide <<Mr/Ms>> for his guidance in
acquiring proper information and all the employees for their co-operation in providing required information for
building up my Internship Report successfully. I am very much thankful to Manager of the company for giving
me the opportunity in their firm and guiding me in a right path by providing all the required information to
make the Internship work success.
.
SHIVA NIHAR
(Reg. No. 19K81E0046)
4. 4 | P a g e
DECLARATION
I hereby declare that this Internship entitled “A STUDY ON MUTUAL FUNDS WITH REFERENCE
TO HDFC Ltd” has been prepared by me during the academic year 2019-2020, in partial fulfillment of the
requirement for the award of the degree of “MASTER OF BUSINESS ADMINISTRATION” by Jawaharlal
Nehru Technological University, Hyderabad.
I assure that this Internship Report is the result of my effort and that it has not been submitted to this
University or any other University for the award of any Degree or Diploma.
HYDERABAD SHIVA NIHAR
DATE: (Reg. No. 19K81E0046)
5. 5 | P a g e
INDEX
CHAPTERS CONTENTS PAGE .NO
1 Introduction 06-18
2
Company profile 19-20
2.1 Introduction of the Company 20-24
2.2 Company Vision & Mission 24
2.3 Organization Structure 25
2.4 Products and competitors of the company 26-28
2.5 Achievements and Goals 29-30
2.6 Functions of the Company 31-34
3 SWOT Analysis of the Company 35-60
4 Findings & Recommendations 61-63
5 Bibliography 64-65
7. 7 | P a g e
INTRODUCTION
A Mutual Fund is a body corporate registered with the Securities and Exchange Board of
India (SEBI) that pools up the money from individual / corporate investors and invests the
same on behalf of the investors /unit holders, in equity shares, Government securities, Bonds,
Call money markets etc., and distributes the profits. In other words, a mutual fund allows an
investor to indirectly take a position in a basket of assets.
Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act in 1963, and
started its operations in 1964 with the issue of units under the scheme US64.
Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds
mentioned above. All the mutual funds must get registered with SEBI. The only exception is
the UTI, since it is a corporation formed under a separate Act of Parliament. SEBI is the
regulatory authority of MFs. SEBI has the following broad guidelines pertaining to mutual
funds :
1. MFs should be formed as a Trust under Indian Trust Act and should be operated by Asset
Management Companies (AMCs).
2. MFs need to set up a Board of Trustees and Trustee Companies. They should also have their
Board of Directors.
3. The net worth of the AMCs should be at least Rs.5 crore.
4. AMCs and Trustees of a MF should be two separate and distinct legal entities.
5. The AMC or any of its companies cannot act as managers for any other fund.
6. AMCs have to get the approval of SEBI for its Articles and Memorandum of Association.
7. All MF schemes should be registered with SEBI.
8. MFs should distribute minimum of 90% of their profits among the investors.
9. There are other guidelines also that govern investment strategy, disclosure norms and
advertising code for mutual funds.
A mutual fund is just the connecting bridge or a financial intermediary that allows a group of
investors to pool their money together with a predetermined investment objective. The mutual
fund will have a fund manager who is responsible for investing the gathered money into specific
securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions
of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund.
Mutual funds are considered as one of the best available investments as compare to others they
are very cost efficient and also easy to invest in, thus by pooling money together in a mutual
fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to
do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing
risk & maximizing returns
8. 8 | P a g e
MUTUAL FUND OVERVIEW:
MUTUAL FUND AN INVESTMENT PLATFORM :
Mutual fund is an investment company that pools money from small
investors and invests in a variety of securities, such as stocks, bonds and money market
instruments. Most open-end Mutual funds stand ready to buy back (redeem) its shares at their
current net asset value, which depends on the total market value of the fund's investment
portfolio at the time of redemption. Most open-end Mutual funds continuously offer new shares
to investors. It is also known as an open-end investment company, to differentiate it from a
closed-end investment company.
Mutual funds invest pooled cash of many investors to meet the fund's stated investment
objective. Mutual funds stand ready to sell and redeem their shares at any time at the fund’s
current net asset value: total fund assets divided by shares outstanding.
In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as disclosed in offer
document.
Investments in securities are spread across a wide cross-section of industries and sectors and
thus the risk is reduced. Diversification reduces the risk because not all stocks may move in
the same direction in the same proportion at the same time. Mutual fund issues units t o the
investors in accordance with quantum of money invested by them. Investors of Mutual fund
are known as unit holders. The profits or losses are shared by the investors in proportion to
their investments. The Mutual funds normally come out with a number of schemes with
different investment objectives which are launched from time to time.
ADVANTAGES OF MUTUAL FUND :
9. 9 | P a g e
a. Liquidity:
Unless you opt for close-ended mutual funds, it is relatively easier to buy and exit a
mutual fund scheme. You can sell your units at any point (when the market is high). Do keep an eye
on surprises like exit load or pre-exit penalty. Remember, mutual fund transactions happen only once
a day after the fund house releases that day’s NAV.
b. Diversification:
Mutual funds have their share of risks as their performance is based on the market
movement. Hence, the fund manager always invests in more than one asset class (equities,
debts, money market instruments, etc.) to spread the risks. It is called diversification. This way, when
one asset class doesn’t perform, the other can compensate with higher returns to avoid the loss for
investors.
c. Expert Management:
A mutual fund is favoured because it doesn’t require the investors to do the
research and asset allocation. A fund manager takes care of it all and makes decisions on what to do
with your investment. He/she decides whether to invest in equities or debt. He/she also decide on
whether to hold them or not and for how long.
Your fund manager’s reputation in fund management should be an essential criterion for you to
choose a mutual fund for this reason. The expense ratio (which cannot be more than 1.05% of
the AUM guidelines as per SEBI) includes the fee of the manager too.
d. Less cost for bulk transactions:
You must have noticed how price drops with increased volume
when you buy any product. For instance, if a 100g toothpaste costs Rs.10, you might get a 500g pack
for, say, Rs.40. The same logic applies to mutual fund units as well. If you buy multiple units at a
time, the processing fees and other commission charges will be less compared to when you buy one
unit.
e. Invest in smaller denominations:
By investing in smaller denominations (SIP), you get exposure to
the entire stock (or any other asset class). This reduces the average transactional expenses – you
benefit from the market lows and highs. Regular (monthly or quarterly) investments, as opposed to
lumpsum investments, give you the benefit of rupee cost averaging.
f. Suit your financial goals:
There are several types of mutual funds available in India catering to
investors from all walks of life. No matter what your income is, you must make it a habit to set aside
some amount (however small) towards investments. It is easy to find a mutual fund that matches your
income, expenditures, investment goals and risk appetite.
g. Cost-efficiency:
You have the option to pick zero-load mutual funds with fewer expense ratios. You
can check the expense ratio of different mutual funds and choose the one that fits in your budget and
financial goals. Expense ratio is the fee for managing your fund. It is a useful tool to assess a mutual
fund’s performance.
h. Quick & painless process:
You can start with one mutual fund and slowly diversify. These days it
is easier to identify and handpicked fund(s) most suitable for you. Tracking mutual funds will not take
any extra effort from your side. The fund manager, with the help of his team, will decide when, where
and how to invest. In short, their job is to beat the benchmark and deliver you maximum returns
consistently.
i. Tax-efficiency:
You can invest up to Rs 1.5 lakh in tax-saving mutual funds which is covered under
10. 10 | P a g e
Section 80C of the Income Tax Act, 1961. Though a 10% tax on Long-Term Capital Gains (LTCG) is
applicable for returns above Rs.1 lakh after one year, they have consistently delivered higher returns
than other tax-saving instruments like FD in recent years.
j. Automated payments:
It is common to forget or delay SIPs or prompt lumpsum investments due to
any given reason. You can opt for paperless automation with your fund house or agent. Timely email
and SMS notifications help to counter this kind of negligence.
k. Safety:
There is a general notion that mutual funds are not as safe as bank products. This is a myth
as fund houses are strictly under the purview of statutory government bodies like SEBI and AMFI.
One can easily verify the credentials of the fund house and the asset manager from SEBI. They also
have an impartial grievance redressal platform that works in the interest of investors.
l. Systematic or one-time investment:
You can plan your mutual fund investment as per your budget
and convenience. For instance, starting a SIP (Systematic Investment Plan) on a monthly or quarterly
basis suits investors with less money. On the other hand, if you have surplus amount, go for a one-
time lumpsum investment.
DISADVANTAGE OF INVESTING THROUGH MUTUAL FUNDS:
a) Costs to manage the mutual fund:
The salary of the market analysts and fund manager comes
from the investors. Total fund management charge is one of the first parameters to consider when
choosing a mutual fund. Higher management fees do not guarantee better fund performance.
b) Lock-in periods:
Many mutual funds have long-term lock-in periods, ranging from five to
eight years. Exiting such funds before maturity can be an expensive affair. A specific portion of the
fund is always kept in cash to pay out an investor who wants to exit the fund. This portion cannot earn
interest for investors.
11. 11 | P a g e
c) Dilution:
While diversification averages your risks of loss, it can also dilute your profits.
Hence, you should not invest in more than seven to nine mutual funds at a time.As you have just read
above, the benefits and potential of mutual funds can undoubtedly override the disadvantages, if you
make informed choices. However, investors may not have the time, knowledge or patience to research
and analyse different mutual funds. Investing with Clear Tax could solve this as we have already done
the homework for you by handpicking the top-rated funds from the best fund houses in the country.
CATEGORIES OF MUTUAL FUND:
By Structure:
Open-ended funds:
Investors can buy and sell the units from the fund, at any point of time.
Close-ended funds:
These funds raise money from investors only once. Therefore, after the
offer period, fresh investments cannot be made into the fund. If the fund is listed on a stocks
exchange, the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently,
most of the New Fund Offers of close-ended funds provided liquidity window on a periodic
basis such as monthly or weekly. Redemption of units can be made during specified intervals.
Therefore, such funds have relatively low liquidity.
12. 12 | P a g e
By Asset Class:
Equity funds: These funds invest in equities and equity related instruments. With fluctuating
share prices, such funds show volatile performance, even losses. However, short term
fluctuations in the market, generally smoothens out in the long term, thereby offering higher
returns at relatively lower volatility. At the same time, such funds can yield great capital
appreciation as, historically, equities have outperformed all asset classes in the long term.
Hence, investment in equity funds should be considered for a period of at least 3-5 years.
Debt fund: They invest only in debt instruments, and are a good option for investors averse to
idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income
instruments like bonds, debentures, Government of India securities; and money market
instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put
your money into any of these debt funds depending on your investment horizon and needs.
ORGANISATION STRUCTURE OF MUTUAL FUND:
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.
13. 13 | P a g e
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.
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.
RISK V/S REWARD
Having understood the basics of mutual funds the next step is to build a successful investment
portfolio. Before you can begin to build a portfolio, one should understand some other
elements of mutual fund investing and how they can affect the potential value of your
investments over the years. The first thing that has to be kept in mind is that when you invest
in mutual funds, there is no guarantee that you will end up with more money when you
withdraw your investment than what you started out with. That is the potential of loss is
always there. The loss of value in your investment is what is considered risk in investing.
Even so, the opportunity for investment growth that is possible through investments inmutual
funds far exceeds that concern for most investors. Here’s why At the cornerstone of investing is
the basic principal that the greater the risk you take, the greater the potential reward. Or stated
in another way, you get what you pay for and you get paid a higher return only when you're
willing to accept more volatility.
Risk then, refers to the volatility the up and down activity in the markets and individual issues
that occurs constantly over time. This volatility can be caused by a number of factors interest
rate changes, inflation or general economic conditions. It is this variability, uncertainty and
potential for loss, that causes investors to worry.
14. 14 | P a g e
TYPES OF RISKS:
All investments involve some form of risk. Consider these common types of
risk and evaluate them against potential rewards when you select an investment.
Market Risk:
At times the prices or yields of all the securities in a particular market
rise or fall due to broad outside influences. When this happens, the stock
prices of both an outstanding, highly profitable company and a fledgling
corporation may be affected. This change in price is due to "market risk".
Also known as systematic risk.
Inflation Risk:
Sometimes referred to as "loss of purchasing power". Whenever
inflation rises forward faster than the earnings on your investment, you run
the risk that you'll actually be able to buy less, not more. Inflation risk also
occurs when prices rise faster than your returns.
Credit Risk:
In short, how stable is the company or entity to which you lend your
money when you invest? How certain are you that it will be able to pay the
interest you are promised, or repay your principal when the investment
matures?
Interest Rate
Risk:
Changing interest rates affect both equities and bonds in many
ways. Investors are reminded that "predicting" which way rates will
go is rarely successful. A diversified portfolio can help in offsetting
these changes.
Exchange risk:
A number of companies generate revenues in foreign currencies and
may have investments or expenses also denominated in foreign currencies.
Changes in exchange rates may, therefore, have a positive or negative
impact on companies which in turn would have an effect on the investment
of the fund.
Investment Risks:
The sectorial fund schemes, investments will be predominantly
in equities of select companies in the particular sectors.
Accordingly, the NAV of the schemes are linked to the equity
performance of such companies and may be more volatile than a
more diversified portfolio of equities.
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Call Risks:
Call risk is associated with bonds have and embedded call option in
them. This option gives the issuer the right to call back the bonds prior to
maturity. Then investor however is exposed to some risks here. The price
of the callable bond many not rise much above the price at which the issuer
may call
NEED OF THE STUDY
Mutual fund is a booming sector now a days and it has a lot of scope to generate income and
provide return to the investors.
There is a need to investigate how efficiently the hard earned money of the investors and scare
resources of the economy are effectively utilized.
The main purpose of the study is to know about the mutual funds and it's functioning.
This helps to know in detail about mutual fund industry right from it’s inception stage, growth
and future prospects.
OBJECTIVES
To know the risk and return of four small cap equity funds.
To analyze those small cap mutual funds based on risk and returns.
To suggest the ideal mutual fund to investor based on risk and return.
To help a step ahead in the process of financial planning.
SCOPE OF THE STUDY
This study can be extended to the schemes of various mutual funds
Apart from mutual funds the study can be extended to various collective investment schemes.
Because of the reason for such performance is immediately analyzed in the issue.
Graphs are used to reflect the portfolio risk and return.
RESEARCH METHODOLOGY:
This study is both analytical and descriptive in nature.
Secondary source of data is used for measuring the performance of mutual funds by its risk and
returns. This study was based on data regarding NAV.
Primary data:
Primary data is the first hand information. Primary data was collected through survey method
by distributing questionnaires to employees. The methods followed were interview methods
and questionnaire methods.
The questionnaires were carefully designed by taking into account the parameters of my
study. The managers of different departments were the majority to be interviewed in the entire
sample taken. In the employees and managers of the CAPITAL IQ were asked questions
regarding the recruitment and selection process, its effectiveness and the relevant or required
changes they intended to have in the present recruitment and selection process of the
company.
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Secondary data:
The secondary data collected from the different sites, brochure, news papers, company offer
documents, different books and through suggestions from the project guide and from the
faculty members of our college.
One of the most important uses of research methodology is that it helps in identifying the
problem, collecting, analyzing the required information data and providing an alternative
solution to the problem. It also helps in collecting the vital information that is required by the
top management to assist them for the better decision making both day to day decision and
critical ones.
RISK AND RETURN:
The concept of time value of money says , and it is a rational to ,
that a rupee receive today is more value than receiving it tomorrow.
RISK:
In the investing world, the dictionary definition of risk is the chance that an investment's
actual return will be different than expected. Risk means you have the possibility of losing some, or
even all, of your original investment. Low levels of uncertainty (low risk) are associated with low
potential returns. High levels of uncertainty (high risk) are associated with high potential returns. The
risk/return trade off is the balance between the desire for the lowest possible risk and the highest
possible return. Investment risks can be divided into two categories: systematic and unsystematic.
Systematic risk :
Systematic risk is caused by factors external to the particular company
and uncontrollable by the company. The systematic risk affects the market as a whole factors effect
the systematic risk are
Economic conditions
Political conditions
Sociological changes
The systematic risk is unavoidable.
Unsystematic risk:
Unsystematic risk is unique and peculiar to a firm or an industry. The
nature and mode of rising finance and paying back the loans, involved the risk element .Financial
leverage of the companies i.e, debt-equity portion of the companies differs from each other. All these
factors affect the unsystematic risk and contribute apportion in the total variability of the return.
Managerial efficiently.
Technological change in the production process.
17. 17 | P a g e
Formula:
Average returns =sum of returns / number of returns
Annual returns:
Annual returns is the returns an investment provides over a period of time,
expressed as a time-weighted annual percentage source of returns can include dividends, returns of
capital and capital appreciation.
Holding period returns:
Holding period return is the return on an asset or portfolio over the whole
period during which it was held it is particularly useful for comparing returns
RISK AND EXPECTED RETURN:
There is a positive relationship between the amount of risk and
the amount of expected returns i.e., the greater the risk, the larger the expected return and larger the
changes of substantial loss. One of the most difficult problems for an investor is to estimate the
highest level of risk.
LIMITATIONS OF THE STUDY:
The study is conducted in short period, due to which the study may not be detailed in all
aspects.
The study is limited only to the analysis of different schemes and its suitability to different
investors according to their risk-taking ability.
The study is based on secondary data available from monthly fact sheets, web sites; offer
documents, magazines and newspapers etc., as primary data was not accessible.
Though, I tried to collect some primary data but they were too inadequate for the purpose of
the study.
The study is limited to selected mutual fund schemes.
RECENT TRENDS IN MUTUAL FUND INDUSTRY:
The most important trend in the mutual fund industry is the aggressive expansion of the
foreign owned mutual fund companies and the decline of the companies floated by
nationalized banks and smaller private sector players.
Many nationalized banks got into the mutual fund business in the early nineties and got off to
a good start due to the stock market boom prevailing then. These banks did not really
understand the mutual fund business and they just viewed it as another kind of banking
activity. Few hired specialized staff and generally chose to transfer staff from the parent
organizations.
The performance of most of the schemes floated by these funds was not good. Some schemes
had offered guaranteed returns and their parent organizations had to bail out these AMCs by
18. 18 | P a g e
paying large amounts of money as the difference between the guaranteed and actual returns.
The service levels were also very bad. Most of these AMCs have not been able to retain staff,
float new schemes etc. and it is doubtful whether, barring a few exceptions, they have serious
plans of continuing the activity in a major way
The experience of some of the AMCs floated by private sector Indian companies was also
very similar. They quickly realized that the AMC business is a business, which makes money
in the long term and requires deep-pocketed support in the intermediate years.
Some have sold out to foreign owned companies, some have merged with others and there is
general restructuring going on.
The foreign owned companies have deep pockets and have come in here with the expectation
of a long haul. They can be credited with introducing many new practices such as new product
innovation, sharp improvement in service standards and disclosure, usage of technology,
broker education and support etc. In fact, they have forced the industry to upgrade itself and
service levels of organizations like UTI have improved dramatically in the last few years in
response to the competition provided by these.
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CHAPTER-II
Company profile
2.1 Introduction of the Company
2.2 Company Vision & Mission
2.3 Organization Structure
2.4 Products and competitors
of the company
2.5 Achievements and Goals
2.6 Functions of the Company
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COMPANY PROFILE
HDFC Asset Management Company Limited (AMC)
HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956,
on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC
mutual fund by SEBI vide its letter dated July 3rd,2000.
A subsidiary of the Housing Development Finance Corporation, HDFC Bank was incorporated in
1994, with its registered office in Mumbai, Maharashtra, India. Its first corporate office and a full-
service branch at Sandoz House, Worli were inaugurated by the then Union Finance
Minister, Manmohan Singh.
As of 30 June 2019, the Bank's distribution network was at 5,500 branches across 2,764 cities. The
bank also installed 430,000 POS terminals and issued 23,570,000 debit cards and 12 million credit
cards in FY 2017
2.1 Introduction of the Company:
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)
HDFC Ltd. was incorporated in 1977 as the first specialized mortgage company 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 has a client base of around 13.25lac borrowers, over 17.5lac depositors,
over 1.82lac shareholders and over 25,000 deposit agents, as at March 31, 2014. In terms of the
Investment Management Agreement, the Trustee has appointed the HDFC Asset Management
Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs.25.241crore as
on March 31, 2015.
HDFC's borrowings consists of domestic term loans from banks and insurance companies, bonds and
retail deposits. HDFC has received the highest rating for its bonds and deposits program for the
Nineteenth year in succession.
As part of HDFC‟s developmental initiatives, the company has set up institutions in various fields
including Banking, Insurance; Life and General, Asset Management, Credit Rating, Consumer
Finance, IT- enabled services, Real Estate and Education Finance.
Over the years, the HDFC group has emerged as a strong financial conglomerate in the Indian capital
markets with a presence in banking, life and general insurance, asset management and venture capital.
HDFC‟s key associate and subsidiary companies include HDFC Bank Limited, HDFC Standard Life
Insurance Company Limited, HDFC Ergo General Insurance Company Limited.
HDFC Asset Management Company Limited, GRUH Finance Limited,
HDFC Venture Capital Limited and Credila Financial Services Limited
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The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169,
Backbay Reclamation, Churchgate, Mumbai - 400 020.
In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset
Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs.
25.241 crore as on September 30, 2014. The present equity shareholding pattern of the AMC is as
follows :
Particulars % of the paid up equity capital
Housing Development Finance Corporation Limited 59.81
Standard Life Investments Limited 39.87
Other Shareholders (shares issued on exercise of Stock Options)
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 following Schemes of Zurich India Mutual Fund have
migrated to HDFC Mutual Fund on June 19, 2003. These Schemes have been renamed as follows:
Former Name New Name
Zurich India Equity Fund HDFC Equity Fund
Zurich India Prudence Fund HDFC Prudence Fund
Zurich India Capital Builder
Fund
HDFC Capital Builder Fund
Zurich India Tax Saver
Fund
HDFC TaxSaver
Zurich India Top 200 Fund HDFC Top 200 Fund
HDFC Sovereign Gilt Fund has been wound up in March 2006
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 February 12, 2013 to act as a Portfolio Manager under
the SEBI (Portfolio Managers) Regulations, 1993.The Certificate of Registration is valid from
January1, 2013 to December 31,2015. The registered office of the AMC is situated at Ramon House,
3rd Floor, H.T. Parekh Marg 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.
In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset
Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs.
25.169 crore.
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The Board of Directors of the HDFC Asset Management Company Limited (AMC) consists of
the following eminent persons.
MR. ANIL KUMAR HIRJEE (Chairman )
MR. VINCENT JOSEPH O‟BRIEN (Director)
MR. SHISHIR K. DIWANJI (Director)
MR. RANJAN SANGHI (Director )
Mr.DeepakS.Parekh
Mr.N.KeithSkeoch
Mr.KekiM.Mistry
Mr.JamesAird
Mr.P.M.Thampi
Mr.HumayunDhanrajgir
Dr.DeepakB.Phatak
Mr.HoshangS.Billimoria
Mr.RajeshwarRajBajaj
Mr.VijayMerchant
Ms.RenuS.Karnad
Mr.MilindBarve
MR. ANIL KUMAR HIRJEE Chairman,
HDFC Trustee Company Limited
Mr. Anil Kumar Hirjee, the Chairman of the Board, is an independent Director. Mr. Hirjee has 52
years of experience in different areas of Business Management and his expertise extends to finance,
banking, legal, commercial, industrial and general administration. Mr. Hirjee has been associated with
The Bombay Burmah Trading Corporation Limited since 1976 and is presently its Vice Chairman. He
is also a Director on the Boards of various other companies. He has also been actively associated with
leading Charitable Institutions.
Mr. Hirjee is a B.A. (Hons.), LL.B. (Hons.), Barrister-at-Law, and SLOAN Fellow of the London
Business School.
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MR. VINCENT JOSEPH O‟BRIEN, Director HDFC Trustee Company Limited
Mr. Vincent Joseph O’Brien has been appointed as an associate Director on the Board of the Trustee
Company. He joined Standard Life Investments Limited in 2003 and in 2010 he was appointed as the
Global Head of Strategic Alliances with specific responsibility for the Company’s operations in India
and Japan. Prior to 2010 he was the Company Secretary with additional responsibilities for regulatory
compliance and risk management. He reports to the Director of Global Client Group of Standard Life
Investments Limited. Before 2003 he worked for Standard Life Bank as its Company
Secretary with responsibilities for compliance, risk management and legal.
HDFC Mutual Fund is one of the largest mutual funds and well-established fund house in the country
with consistent fund performance across categories since its incorporation on December 10, 1999.
While our past experience does make us a veteran, but when it comes to investments, we have never
believed that the experience is enough.
BUSINESS FOCUS:
HDFC Bank's mission is to be a World-Class Indian Bank. The objective
is to build sound customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest
level of ethical standards, professional integrity, corporate governance and regulatory compliance.
HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer
Focus, Product Leadership and People.
BUSINESS STRATEGY:
* Increasing market share in India’s expanding banking
* Delivering high quality customer service
* Maintaining current high standards for asset quality through disciplined credit risk management
* Develop innovative products and services that attract targeted customers and address inefficiencies
in the Indian financial sector.
DISTRIBUTION NETWORK:
HDFC Bank is headquartered in Mumbai. The Bank at
present has an enviable network of over 1229 branches spread over 444 cities across India. All
branches are linked on an online real-time basis. Customers in over 120 locations are also serviced
through Telephone Banking. The Bank's expansion plans take into account the need to have a
presence in all major industrial and commercial centers where its corporate customers are located as
well as the need to build a strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers
where the NSE/BSE has a strong and active member base.
PROMOTER:
HDFC is India's premier housing finance company and enjoys an impeccable
track record in India as well as in international markets. Since its inception in 1977, the Corporation
has maintained a consistent and healthy growth in its operations to remain a 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
24. 24 | P a g e
markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC
was ideally positioned to promote a bank in the Indian environment.
TECHNOLOGY:
HDFC Bank operates in a highly automated environment in terms of
information technology and communication systems. All the bank's branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-
branch access is also provided to retail customers through the branch network and Automated
Teller(ATMs). The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank. The Bank's
business is supported by scalable and robust systems which ensure that our clients always get the
finest services we offer. The Bank has prioritised its engagement in technology and the internet as one
of its key goals and has already made significant progress in web-enabling its core businesses. In each
of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology
to create a competitive advantage and build market share.
2.2 Company Vision & Mission:
Vision:
To become the market leader in Housing Development Finance in Sri Lanka
One of the most successful and admired life insurance company, which means that we are the one of
the most trusted company, the easiest to deal with, offer the best value for money and set the
standards in the industry.
Mission:
We define our mission in the broader context of our shareholders, customers, staff, the
national economy, regulators and the natural environment.
To our shareholders, our mission is to optimize returns.
To our customers, our mission is to provide a caring service by anticipating their requirements
and innovatively satisfying them beyond their expectations.
To our staff, our mission is to identify their multi-faceted talents, develop, motivate, recognize
and reward them towards fullfilment of the institutional and national housing vision.
To the national economy and the industry regulator, we are the key driver and thought leader,
shaping and financing the national housing policy.
To our natural environment, we enforce sustainable practices across all our activities.
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2.3 Organization Structure:
As on 30-June-2019, the authorized share capital of the Bank is
Rs. 650 crore. The paid-up share capital of the Bank as on the said date is Rs. 546,56,24,542 /- which
is comprising of 273,28,12,271 equity shares of the face value of Rs 2/- each. The HDFC Group holds
21.31% of the Bank's equity and about 18.81% of the equity is held by the ADS / GDR Depositories
(in respect of the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR)
Issues). 31.37% of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has
6,53,843 shareholders
The shares are listed on the BSE Limited and The National Stock Exchange of India
Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange
(NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on
Luxembourg Stock Exchange under ISIN No US40415F2002
An organizational structure is a system that outlines how certain activities are directed in
order to achieve the goals of an organization. These activities can include rules, roles, and
responsibilities.
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2.4 Products and competitors of the company:
Products of the company:
HDFC Bank provides a number of products and services including wholesale
banking, retail banking, treasury, auto loans, two-wheeler loans, personal loans, loans against
property, consumer durable loan, lifestyle loan and credit cards. Along with this various digital
products are Payzapp and Smartbuy.
Credit cards
Consumer Banking
Corporate Banking
Finance and Insurance
Investment Banking
Mortgage Loans
Private Banking
Private Equity
Wealth Management
Competitors of the company:
Axis Bank
Axis Bank is the third largest private-sector banks in
India offering a comprehensive suite of financial products
ICICI Bank
ICICI Bank is a private sector bank that provides banking and
financial services.
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IndusInd Bank
IndusInd Bank is one of the leading Private Sector Banks
of the country
Punjab National Bank
Punjab National Bank is an Indian
multinational banking and financial services company
Bank of Baroda
Bank of Baroda is an Indian state-owned banking and financial
services company headquartered in Vadodara in Gujarat, India
RELIANCE CAPITAL
Reliance Capital Limited is
an Indian diversified financial services holding company promoted by Reliance Anil Dhirubhai
Ambani Group. Reliance Capital, a constituent of Nifty Midcap 50 and MSCI Global Small Cap
Index, is a part of the Reliance Group.
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SBI MUTUAL FUNDS
SBI Mutual Fund was
incorporated in 1987 with its corporate head office located in Mumbai, India. SBIFMPL is a joint
venture between the State Bank of India, an Indian public sector bank, and Amundi, a European asset
management company
HARTFUNDS
The Hartford Financial Services
Group, Inc., usually known as The Hartford, is a United States-based investment
and insurance company. The Hartford is a Fortune 500 company headquartered in its namesake city
of Hartford, Connecticut.[2] It was ranked 160th in Fortune 500 in the year of 2020.[3] The
company's earnings are divided between property-and-casualty operations, group benefits and mutual
funds.
FUNDSINDIA
FundsIndia (est. 2009) is an
online investment website headquartered in Chennai, Tamil Nadu.[5][6] The website is owned by
Wealth India Financial Services Pvt. Ltd.[1] It was initially created just for mutual funds but later
introduced other investment products like stocks, corporate fixed deposits, bonds, and
more.[7] FundsIndia was founded by C.R. Chandrasekar and Srikanth Meenakshi,[8] alumnus of
the University of Hyderabad
IDBI MUTUAL
IDBI Capital Markets &
Securities Ltd.(formerly known as "IDBI Capital Market Services Limited"), a wholly owned
subsidiary of IDBI Bank, is a fully integrated financial services provider catering to retail,
institutional and corporate clients. Incorporated in December 1993, today it has a net worth of around
INR 3 billion and employs over 200 employees in 15 branches across India
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2.5 Achievements and Goals:
Achievements:
HDFC Bank began operations in 1995 with a simple mission: to be
a "World-class Indian Bank". We realised that only a single-minded focus on product quality and
service excellence would help us get there. Today, we are proud to say that we are well on our way
towards that goal.
It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.
2016:
- Best Banking Performer, India in 2016 by Global Brands Magazine Award.
- Best Performing Branch in Microfinance among private sector banks by NABARD, 2016,
Award for Best Performance in Microfinance
- KPMG study of India's Best Banks, Bank of the year & best digital banking initiative award
2016
- BrandZ Rankings, Most Valued brand in India for third successive year
- FinanceAsia poll on Asia's Best Companies 2015, Best managed public company – India
- J. P. Morgan Quality Recognition Award, Best in class straight through processing rates
2019:
- Best Bank: New Private Sector – FE Best Bank awards
- Winner in Innovation and Inclusiveness in Priority Sector Lending – 11th Inclusive Finance
India Awards (IFI) 2019
- Ranked 1st in 2019 Brand Z Top 75 Most Valuable Indian Brands HDFC Bank was featured
for the 6th consecutive year.
- Among The Most Honored Company List, Institutional Investor All-Asia (ex-Japan)
Executive Team 2019 survey
- India’s Best Bank, Euro money Awards for Excellence 2019
- Bank of the Year and Best Large Bank, Business Today – Money Today Financial Awards
2019
- Best Bank in India 2019, by Global magazine Finance Asia.
- Ranked 60th in 2019 Brand Z Top 100 Most Valuable Global Brands
- HDFC Bank was featured Brand Z Top 100 Most Valuable Global Brands 2019 for the 5th
consecutive year. The Bank's brand value has gone up from $20.87 billion in 2018 to
$22.70 billion in 2019.
- Best Large Bank & Fastest Growing Large Bank in 2019, by Business World Magna Awards.
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2020:
India's Best Bank : Euro money Awards
ET Innovation Awards 2020
- Marketing and Brand Innovation of the Year
Award
Asiamoney Asia's Outstanding
Companies Poll 2019?
- Most Outstanding Company - Financial
Sector
2020 BrandZ™ Top 75 Most
Valuable Indian Brands
- HDFC Bank ranked India’s Most
ValuableBrand for the 7th consecutive year
Euromoney (Global) Awards For
Excellence 2020
- Lifetime Achievement Award - AdityaPuri
FinanceAsia Country Awards 2020 - Best Bank in India
Euromoney Awards for Excellence
2020
- India’s Best Bank
Great Place To Work
- HDFC Bank certified as a ‘Great Place to
Work’ for 2020
Goals:
HDFC Bank's mission is to be a world class Indian bank. We have a two-fold objective:
first, to be the preferred provider of banking services for target retail and wholesale customer
segments. The second objective is to achieve healthy growth in profitability, consistent with the
bank's risk appetite
Smart Goals is a unique savings scheme which enables customers to realize their medium-
term goals. This helps customers to target their goals at the end of three years. At that point,
you can fullfil your aspirations in life, be it purchasing a new car, getting married or sending
your children overseas for education.
Minimum savings period is 03 years - At the end of three years, customers can withdraw their
deposits with the accumulated interest.
Accounts can be opened with Rs.1,000/-at any branch of the HDFC Bank
Smart Goals offers higher interest rates
Total flexibility and convenience. Customers can plan ahead to achieve their targets in three
years by depositing any amount of money at any time.
Incentive to save. The more customers save, the higher the interest rate. It will be calculated
on a daily basis and credited to one’s Smart Goals account monthly.
Customers can also opt not to withdraw their money at the end of three years. This will entitle
them to an additional interest rate of 0.5% if no withdrawals are made during the relevant mth
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2.6 Functions of the Company:
A: General Functions:
1. Receiving Deposits: The first and foremost function of commercial bank is to receive or collect
deposits from the public in different forms of accounts e.g. current, savings, term deposits. No interest
is charged in the current account, lower rate of interest is charged in the savings account and
comparatively higher interest rates charged in fixed deposits. Thus, commercial bank builds up
customer network.
2. Accommodation of loans and advances: Commercial Bank attaches much importance to
providing loans and advances at a higher rates than the deposit rates and thus earns profits on it.
Working capital is accommodated to the borrower for expansion and smooth running of business. In
the similar manner, commercial bank extends financial accommodation for the development of
agriculture 6 and industry. Credit accommodation is provided to the entrepreneurs for reviving sick
and old industries as per Govt. directives. Thus, commercial bank also extends welfare services to the
people at large.
3. Creation of Loan Deposits: Commercial Bank not only receives deposits from public and
accommodates loans to public but also creates loan deposits. For example: while disbursing loans as
per sanction stipulation, the amount of loan is credited to the borrower‟s account. The borrower may
not withdraw the full amount at a time. The residual amount i.e. balance left in the account creates
loan deposits.
4. Creation of medium of exchange: Central Bank has got exclusive right to issue notes. On
the other hand, Commercial Bank creates medium of exchange by issuing cheques. Like notes,
cheque is transferrable being popularly used in the banking transactions.
5. Contribution in foreign trade: Commercial Bank plays a vital role in expediting foreign
exchange and foreign trade business e.g. import, export etc. It contributes greatly in the economy
through import finance and export finance and thus, earn foreign exchange for the country.
B. Public Utility Functions:
1. Remittance of Money: Remittance of money to the public from one place to another is one of
the functions of commercial bank. Remittance is effected in the form of demand draft ,telegraphic
transfer etc. through different branches and correspondents home and abroad.
2. Help in trade and commerce: Commercial Bank helps expand trade and commerce. In
inland and foreign trade customers are allowed credit accommodation in the form of letter of credit ,
bill purchased and discounted etc.
3. Safe custody of valuables: Commercial Bank introduces „locker‟ services to the customers
for safe custody of valuables e.g. documents, shares, securities etc.
4. Help in Foreign Exchange business: While opening letter of credit , commercial bank
obtains credit report of the suppliers and thus help expedite import and export business.
5. Act as a Referee: 7 Commercial Bank acts as a referee for and on behalf of the customers.
6. Act as an Adviser: Commercial Bank provides valuable advice to the customers on different
products, business growth and development, feasibility of business and industry.
C. Agency Functions: Besides above stated functions, commercial bank acts as a
representative of the customers.
32. 32 | P a g e
1. Collection and payment: Commercial Bank is engaged in collection and payment of cheque,
bill of exchange, promissory notes, pension, dividends, subscription, insurance premium, interest etc.
on behalf of the clients.
2. Purchase and sale of shares and securities: Commercial Bank is entrusted with the
responsibility of purchase and sale of shares and securities on behalf of the customers.
3. Maintenance of secrecy: Maintenance of secrecy is one of the most important functions of
commercial bank.
4. Act as a trustee: Commercial Bank acts as a trustee on behalf of the customer.
5. Economic Development and Welfare activities: Commercial Bank contributes much for
the welfare and economic development of the country.
BENEFITS OF MUTUAL FUNDS:
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
Universal Benefits Affordability:
A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the
33. 33 | P a g e
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!
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 underperform but bonds and money market instruments
might do well enough to offset the effect of a slump in the equity markets.
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
Professional Management:
Qualified investment professionals who seek to maximise returns and minimise risk monitor
investor's money. When you buy in to a mutual fund, you are handing your money to an
investment professional who 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.
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 open-ended equity-
oriented funds, income distributions for the year ending March 31, 2003, will be taxed at a
concessional rate of 10.5%.
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
34. 34 | P a g e
Benefits of Open-ended Schemes:
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.
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.
Flexibility
Mutual Funds offering multiple schemes allow investors to switch easily between various schemes.
This flexibility gives the investor a convenient way to change the mix of his portfolio over time.
Transparency
Open-ended mutual funds disclose their Net Asset Value (“NAV”) daily and the entire portfolio
monthly. This level of transparency, where the investor himself sees the underlying assets bought
with his money, is unmatched by any other financial instrument. Thus the investor is in the know of
the quality of the portfolio and can invest further or redeem depending on the kind of the portfolio
that has been constructed by the investment manager.
35. 35 | P a g e
CHAPTER-III
SWOT Analysis of the Company
36. 36 | P a g e
SWOT Analysis of the Company:
Strengths in the SWOT analysis of HDFC:
HDFC bank is the second largest private banking sector in India having 2,201 branches and
7,110 ATM’s
HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve
customers through Telephone banking
The bank’s ATM card is compatible with all domestic and international Visa/Master card,
Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for HDFC cards
to be the most preferred card for shopping and online transactions
HDFC bank has the high degree of customer satisfaction when compared to other private
banks
The attrition rate in HDFC is low and it is one of the best places to work in private banking
sector
HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from various
financial rating institutions like Dun and Bradstreet, Financial express, Euromoney awards for
excellence, Finance Asia country awards etc
HDFC has good financial advisors in terms of guiding customers towards right investments
Weaknesses in the SWOT analysis of HDFC:
HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its direct
competitor is expanding in rural market
HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyals in
terms of banking services.
HDFC lacks in aggressive marketing strategies like ICICI
The bank focuses mostly on high end clients
Some of the bank’s product categories lack in performance and doesn’t have reach in the
market
The share prices of HDFC are often fluctuating causing uncertainty for the investors
Opportunities in the SWOT analysis of HDFC:
HDFC bank has better asset quality parameters over government banks, hence the profit
growth is likely to increase
The companies in large and SME are growing at very fast pace. HDFC has good reputation in
terms of maintaining corporate salary accounts
HDFC bank has improved it’s bad debts portfolio and the recovery of bad debts are high when
compared to government banks
HDFC has very good opportunities in abroad
Greater scope for acquisitions and strategic alliances due to strong financial position
37. 37 | P a g e
HDFC Equity Fund analysis
Plan Name NAV Date NAV
Amount
Returns D D*D
HDFC
Equity
Fund
27 Feb, 2019 55.135 0.161683 0.159183 0.025339
HDFC
Equity
Fund
26 Feb, 2019 55.046 -0.70351 -0.70351 0.494932
HDFC
Equity
Fund
25 Feb, 2019 55.436 0.642678 0.642678 0.413035
HDFC
Equity
Fund
22 Feb, 2019 55.082 0.37905 0.37905 0.143679
HDFC
Equity
Fund
21 Feb, 2019 54.874 0.522083 0.522083 0.272571
HDFC
Equity
Fund
20 Feb, 2019 54.589 1.472201 1.472201 2.167376
HDFC
Equity
Fund
19 Feb, 2019 53.797 0.253443 0.253443 0.064233
HDFC
Equity
Fund
18 Feb, 2019 53.661 -0.81879 -0.81879 0.670423
38. 38 | P a g e
HDFC
Equity
Fund
15 Feb, 2019 54.104 0.077689 0.077689 0.006036
HDFC
Equity
Fund
14 Feb, 2019 54.062 -0.26749 -0.26749 0.071553
HDFC
Equity
Fund
13 Feb, 2019 54.207 -1.15787 -1.15787 1.340667
HDFC
Equity
Fund
12 Feb, 2019 54.842 -0.49713 -0.49713 0.247142
HDFC
Equity
Fund
11 Feb, 2019 55.116 5.681361 5.681361 32.27786
HDFC
Equity
Fund
08 Feb, 2019 52.153 -1.53681 -1.53681 2.361772
HDFC
Equity
Fund
07 Feb, 2019 52.967 0.058561 0.058561 0.003429
HDFC
Equity
Fund
06 Feb, 2019 52.936 1.22961 1.22961 1.511941
HDFC
Equity
Fund
05 Feb, 2019 52.293 -0.33164 -0.33164 0.109983
HDFC
Equity
Fund
04 Feb, 2019 52.467 -0.66831 -0.66831 0.446635
39. 39 | P a g e
HDFC
Equity
Fund
01 Feb, 2019 52.82 -0.62462 -0.62462 0.390155
HDFC
Equity
Fund
31 Jan, 2019 53.152 1.402217 1.402217 1.966212
HDFC
Equity
Fund
30 Jan, 2019 52.417 -5.19624 -5.19624 27.00089
HDFC
Equity
Fund
29 Jan, 2019 55.29 0.083267 0.083267 0.006933
HDFC
Equity
Fund
28 Jan, 2019 55.244 -1.29889 -1.29889 1.687107
HDFC
Equity
Fund
25 Jan, 2019 55.971 -0.44822 -0.44822 0.200897
HDFC
Equity
Fund
24 Jan, 2019 56.223 0.162118 0.162118 0.026282
HDFC
Equity
Fund
23 Jan, 2019 56.132 -0.84788 -0.84788 0.718895
HDFC
Equity
Fund
22 Jan, 2019 56.612 -0.63538 -0.63538 0.403705
HDFC
Equity
Fund
21 Jan, 2019 56.974 0.043899 0.043899 0.001927
40. 40 | P a g e
HDFC
Equity
Fund
18 Jan, 2019 56.949 -0.50491 -0.50491 0.254933
HDFC
Equity
Fund
17 Jan, 2019 57.238 -0.22139 -0.22139 0.049013
HDFC
Equity
Fund
16 Jan, 2019 57.365 0.334068 0.334068 0.111601
HDFC
Equity
Fund
15 Jan, 2019 57.174 1.014134 1.014134 1.028468
HDFC
Equity
Fund
14 Jan, 2019 56.6 -0.64074 -0.64074 0.410553
HDFC
Equity
Fund
11 Jan, 2019 56.965 -0.24866 -0.24866 0.06183
HDFC
Equity
Fund
10 Jan, 2019 57.107 0.082369 0.082369 0.006785
HDFC
Equity
Fund
09 Jan, 2019 57.06 6.716041 6.716041 45.10521
HDFC
Equity
Fund
08 Jan, 2019 53.469 0.894424 0.894424 0.799994
HDFC
Equity
Fund
07 Jan, 2019 52.995 0.371219 0.371219 0.137804
41. 41 | P a g e
HDFC
Equity
Fund
04 Jan, 2019 52.799 0.667315 0.667315 0.445309
HDFC
Equity
Fund
03 Jan, 2019 52.449 -0.89002 -0.89002 0.79214
HDFC
Equity
Fund
02 Jan, 2019 52.92 -1.15247 -1.15247 1.328196
HDFC
Equity
Fund
01 Jan, 2019 53.537 0.703497 0.703497 0.494908
HDFC
Equity
Fund
31 Dec, 2018 53.163 0.220563 0.220563 0.048648
HDFC
Equity
Fund
28 Dec, 2018 53.046 0.947705 0.947705 0.898145
HDFC
Equity
Fund
27 Dec, 2018 52.548 0.362886 0.362886 0.131686
HDFC
Equity
Fund
26 Dec, 2018 52.358 0.445075 0.445075 0.198092
HDFC
Equity
Fund
24 Dec, 2018 52.126 -0.42218 -0.42218 0.178238
HDFC
Equity
Fund
21 Dec, 2018 52.347 -1.48301 -1.48301 2.199333
42. 42 | P a g e
HDFC
Equity
Fund
20 Dec, 2018 53.135 -0.23844 -0.23844 0.056856
HDFC
Equity
Fund
19 Dec, 2018 53.262 -5.28169 -5.28169 27.89625
HDFC
Equity
Fund
20 Dec, 2018 56.232 6.433479 6.433479 41.38965
HDFC
Equity
Fund
18 Dec, 2018 52.833 0.448695 0.448695 0.201327
HDFC
Equity
Fund
17 Dec, 2018 52.597 0.735449 0.735449 0.540885
HDFC
Equity
Fund
14 Dec, 2018 52.213 0.442452 0.442452 0.195764
HDFC
Equity
Fund
13 Dec, 2018 51.983 0.631086 0.631086 0.398269
HDFC
Equity
Fund
12 Dec, 2018 51.657 1.737075 1.737075 3.017431
HDFC
Equity
Fund
11 Dec, 2018 50.775 0.782041 0.782041 0.611588
HDFC
Equity
Fund
10 Dec, 2018 50.381 -1.67642 -1.67642 2.8104
43. 43 | P a g e
HDFC
Equity
Fund
07 Dec, 2018 51.24 0.4568 0.4568 0.208666
HDFC
Equity
Fund
06 Dec, 2018 51.007 -1.51758 -1.51758 2.303048
HDFC
Equity
Fund
05 Dec, 2018 51.793 -1.34291 -1.34291 1.803403
HDFC
Equity
Fund
04 Dec, 2018 52.498 0.187023 0.187023 0.034978
HDFC
Equity
Fund
03 Dec, 2018 52.4 0.637628 0.637628 0.406569
HDFC
Equity
Fund
30 Nov, 2018 52.068 -0.24905 -0.24905 0.062027
HDFC
Equity
Fund
29 Nov, 2018 52.198 0.423256 0.423256 0.179146
HDFC
Equity
Fund
28 Nov, 2018 51.978 0 0 0
TOTAL
RETURNS
0.61683 TOTAL 0.025339
AVG
RETURNS
0.0025 SD 0.00038
VARIANCE 0.0195
44. 44 | P a g e
GRAPHICAL REPRESENTATION
INTERPRETATION: HDFC funds have been analyzed and it's is found that there is a
positive growth on an average. On an average the fund yields a return of 0.0025 % which
means if invested in the funds an investor can expect a positive returns of 0.0025% at a
standard risk of 0.00038 %. This indicates a moderate returns at a given rate of moderate
risk.
45. 45 | P a g e
SBI Equity Fund Analysis
Plan
Name NAV date
NAV
Amount Returns D D*D
SBI
Equity
Fund
28-Feb-2019 12.388 -0.38263 -0.39624 0.15701
SBI
Equity
Fund
27-Feb-2019 12.4354 0.01689 0.00328 0.00001
SBI
Equity
Fund
26-Feb-2019 12.4333 0.02011 0.00650 0.00004
SBI
Equity
Fund
25-Feb-2019 12.4308 0.05953 0.04592 0.00211
SBI
Equity
Fund
22-Feb-2019 12.4234 0.01449 0.00088 0.00000
SBI
Equity
Fund
21-Feb-2019 12.4216 0.01771 0.00410 0.00002
SBI
Equity
Fund
20-Feb-2019 12.4194 0.04026 0.02665 0.00071
SBI
Equity
18-Feb-2019 12.4144 0.05961 0.04600 0.00212
46. 46 | P a g e
Fund
NAV date
NAV
Amount Returns D D*D
SBI
Equity
Fund
15-Feb-2019 12.407 0.00725 -0.00636 0.00004
SBI
Equity
Fund
14-Feb-2019 12.4061 0.02015 0.00654 0.00004
SBI
Equity
Fund
13-Feb-2019 12.4036 0.03950 0.02589 0.00067
SBI
Equity
Fund
12-Feb-2019 12.3987 0.01532 0.00171 0.00000
SBI
Equity
Fund
11-Feb-2019 12.3968 0.05808 0.04447 0.00198
SBI
Equity
Fund
08-Feb-2019 12.3896 0.02179 0.00818 0.00007
SBI
Equity
Fund
07-Feb-2019 12.3869 0.05974 0.04613 0.00213
SBI
Equity
Fund
06-Feb-2019 12.3795 0.02100 0.00739 0.00005
SBI
Equity
05-Feb-2019 12.3769 0.01939 0.00578 0.00003
47. 47 | P a g e
Fund
NAV date
NAV
Amount Returns D D*D
SBI
Equity
Fund
04-Feb-2019 12.3745 0.04849 0.03488 0.00122
SBI
Equity
Fund
01-Feb-2019 12.3685 0.02102 0.00741 0.00005
SBI
Equity
Fund
31-Jan-2019 12.3659 -0.38089 -0.39450 0.15563
SBI
Equity
Fund
30-Jan-2019 12.413 0.02095 0.00733 0.00005
SBI
Equity
Fund
29-Jan-2019 12.4104 0.02659 0.01298 0.00017
SBI
Equity
Fund
28-Jan-2019 12.4071 0.06690 0.05329 0.00284
SBI
Equity
Fund
25-Jan-2019 12.3988 0.01936 0.00575 0.00003
SBI
Equity
Fund
24-Jan-2019 12.3964 0.02178 0.00817 0.00007
SBI
Equity
Fund
23-Jan-2019 12.3937 0.01694 0.00333 0.00001
SBI 22-Jan-2019 12.3916 0.02502 0.01141 0.00013
48. 48 | P a g e
Equity
Fund
NAV date
NAV
Amount Returns D D*D
SBI
Equity
Fund
21-Jan-2019 12.3885 0.06296 0.04935 0.0244
SBI
Equity
Fund
18-Jan-2019 12.3807 0.02423 0.01062 0.00011
SBI
Equity
Fund
17-Jan-2019 12.3777 0.02020 0.00659 0.00004
SBI
Equity
Fund
16-Jan-2019 12.3752 0.02263 0.00901 0.00008
SBI
Equity
Fund
15-Jan-2019 12.3724 0.02425 0.01064 0.00011
SBI
Equity
Fund
14-Jan-2019 12.3694 0.07599 0.06238 0.00389
SBI
Equity
Fund
11-Jan-2019 12.36 0.02670 0.01309 0.00017
SBI
Equity
Fund
10-Jan-2019 12.3567 0.02590 0.01229 0.00015
SBI
Equity
Fund
09-Jan-2019 12.3535 0.02590 0.01229 0.00015
SBI 08-Jan-2019 12.3503 0.03320 0.01959 0.00038
SBI
Equity
07-Jan-2019 12.3462 0.06318 0.04957 0.00246
49. 49 | P a g e
Fund
NAV date
NAV
Amount Returns D D*D
SBI
Equity
Fund
04-Jan-2019 12.3384 0.03080 0.01719 0.00030
SBI
Equity
Fund
03-Jan-2019 12.3346 0.00568 -0.00794 0.00006
SBI
Equity
Fund
02-Jan-2019 12.3339 0.03243 0.01882 0.00035
SBI
Equity
Fund
01-Jan-2019 12.3299 0.03569 0.02207 0.00049
SBI
Equity
Fund
31-Dec-2018 12.3255 0.08113 0.06752 0.00456
SBI
Equity
Fund
28-Dec-2018 12.3155 -0.36945 -0.38306 0.14674
SBI
Equity
Fund
27-Dec-2018 12.3663 0.03560 0.02198 0.00048
SBI
Equity
Fund
26-Dec-2018 12.3566 0.04370 0.03009 0.00091
SBI
Equit
Fund
24-Dec-2018 12.3512 0.06801 0.05440 0.00296
SBI
Equity
Fund
21-Dec-2018 12.3428 0.01701 0.00340 0.00001
50. 50 | P a g e
SBI
Equity
Fund
20-Dec-2018 12.3407 0.02107 0.00746 0.00006
SBI
Equity
Fund
19-Dec-2018 12.3381 0.03323 0.01962 0.00038
SBI
Equity
18-Dec-2018 12.334 0.03000 0.01639 0.00027
SBI Equity
Fund
17-Dec-2018 12.3303 0.06245 0.04884 0.00238
SBI Equity
Fund
14-Dec-2018 12.3226 0.02597 0.01236 0.00015
SBI Equity
Fund
13-Dec-2018 12.3194 0.03572 0.02210 0.00049
SBI Equity
Fund
12-Dec-2018 12.315 0.03329 0.01968 0.00039
SBI Equity
Fund
11-Dec-2018 12.3109 0.01218 -0.00143 0.00000
SBI Equity
Fund
10-Dec-2018 12.3094 0.05443 0.04082 0.00167
SBI Equity
Fund
07-Dec-2018 12.3027 0.02601 0.01240 0.00015
SBI Equity
Fund
06-Dec-2018 12.2995 0.02764 0.01403 0.00020
SBI Equity
Fund
05-Dec-2018 12.2961 0.04392 0.03030 0.00092
51. 51 | P a g e
SBI Equity
Fund
04-Dec-2018 12.2907 0.02848 0.01487 0.00022
SBI Equity
Fund
03-Dec-2018 12.2872 0.02945 0.01584 0.00025
Average
Returns 0.01361 0.50161
SD 0.00809
Variance 0.08994
GRAPHICAL REPRESENTATION
INTERPRETATION: SBI equity fund has been analyzed and it is found that there is a
positive growth. However there were no fluctuations in the returns there were constant
returns as well as at a certain point negative returns has been found.
52. 52 | P a g e
ICICI PRUDENTIAL EQUITY FUND ANALYSIS
Plan Name
NAV
Date
NAV
Amount Returns D D*D
ICICI
Prudential
Fund
28-Feb-19 21.1 0.75829 0.83191 0.69208
ICICI
Prudential
Fund
27-Feb-19 20.94 -0.09551 -0.02189 0.00048
ICICI
Prudential
Fund
26-Feb-19 20.96 -0.14313 -0.06951 0.00483
ICICI
Prudential
Fund
25-Feb-19 20.99 0.61934 0.69296 0.48020
ICICI
Prudential
Fund
22-Feb-19 20.86 0.43145 0.50507 0.25509
ICICI
Prudential
Fund
21-Feb-19 20.77 0.19259 0.26620 0.07086
53. 53 | P a g e
ICICI
Prudential
Fund
20-Feb-19 20.73 0.62711 0.70073 0.49102
ICICI
Prudential
Fund
19-Feb-19 20.6 0.19417 0.26779 0.07171
ICICI
Prudential
Fund
18-Feb-19 20.56 -0.43774 -0.36412 0.13259
ICICI
Prudential
Fund
15-Feb-19 20.65 -0.62954 -0.55592 0.30905
ICICI
Prudential
Fund
14-Feb-19 20.78 0.04812 0.12174 0.01482
ICICI
Prudential
Fund
13-Feb-19 20.77 -0.28888 -0.21526 0.04634
ICICI
Prudential
Fund
12-Feb-19 20.83 -0.96015 -0.88653 0.78594
ICICI
Prudential
Fund
11-Feb-19 21.03 -1.04612 -0.97251 0.94577
ICICI
Prudential
Fund
08-Feb-19 21.25 -0.84706 -0.77344 0.59821
54. 54 | P a g e
ICICI
Prudential
Fund
07-Feb-19 21.43 0.41997 0.49359 0.24363
ICICI
Prudential
Fund
06-Feb-19 21.34 -0.09372 -0.02010 0.00040
ICICI
Prudential
Fund
05-Feb-19 21.36 -0.60861 -0.53500 0.28622
ICICI
Prudential
Fund
04-Feb-19 21.49 -0.74453 -0.67091 0.45012
ICICI
Prudential
Fund
01-Feb-19 21.65 0.32333 0.39694 0.15757
ICICI
Prudential
Fund
31-Jan-19 21.58 0.74143 0.81505 0.66430
ICICI
Prudential
Fund
30-Jan-19 21.42 0.37348 0.81505 0.66430
ICICI
Prudential
Fund
29-Jan-19 21.34 0.28116 0.35478 0.12587
ICICI
Prudential
Fund
28-Jan-19 21.28 -1.69173 -1.61811 2.61828
ICICI
Prudential
Fund
27-Jan-19 21.28 -1.69173 -1.61811 2.61828
55. 55 | P a g e
ICICI
Prudential
Fund
25-Jan-19 21.64 -0.83179 -0.75817 0.57483
ICICI
Prudential
Fund
24-Jan-19 21.82 -0.32081 -0.24719 0.06110
ICICI
Prudential
Fund
23-Jan-19 21.89 0.00000 0.07362 0.00542
ICICI
Prudential
Fund
22-Jan-19 21.89 -0.77661 -0.70299 0.49420
ICICI
Prudential
Fund
21-Jan-19 22.06 -0.90662 -0.83300 0.69389
ICICI
Prudential
Fund
18-Jan-19 22.26 -0.49416 -0.42054 0.17685
ICICI
Prudential
Fund
17-Jan-19 22.37 -0.35762 -0.28400 0.08066
ICICI
Prudential
Fund
16-Jan-19 22.45 0.53452 0.60814 0.36983
ICICI
Prudential
Fund
15-Jan-19 22.33 0.94044 1.01406 1.02831
ICICI
Prudential
14-Jan-19 22.12 -0.22604 -0.15242 0.02323
56. 56 | P a g e
Fund
ICICI
Prudential
Fund
11-Jan-19 22.17 -0.49617 -0.42255 0.17855
ICICI
Prudential
Fund
10-Jan-19 22.28 0.08977 0.16339 0.02669
ICICI
Prudential
Fund
09-Jan-19 22.26 0.04492 0.11854 0.01405
ICICI
Prudential
Fund
08-Jan-19 22.25 -0.26966 -0.19604 0.03843
ICICI
Prudential
Fund
07-Jan-19 22.31 -0.26894 -0.19532 0.03815
ICICI
Prudential
Fund
04-Jan-19 22.37 -0.13411 -0.06049 0.00366
ICICI
Prudential
Fund
03-Jan-19 22.4 -0.49107 -0.41745 0.17427
ICICI
Prudential
Fund
02-Jan-19 22.51 -0.44425 -0.37063 0.13736
ICICI
Prudential
Fund
01-Jan-19 22.61 0.26537 0.33899 0.11491
ICICI 31-Dec-18 22.55 0.57650 0.65012 0.42265
57. 57 | P a g e
Prudential
Fund
ICICI
Prudential
Fund
28-Dec-18 22.42 0.40143 0.47505 0.22567
ICICI
Prudential
Fund
27-Dec-18 22.33 0.44783 0.52145 0.27191
ICICI
Prudential
Fund
26-Dec-18 22.23 0.35987 0.43349 0.18792
ICICI
Prudential
Fund
24-Dec-18 22.15 -0.63205 -0.55844 0.31185
ICICI
Prudential
Fund
21-Dec-18 22.29 -0.76267 -0.68905 0.47480
ICICI
Prudential
Fund
20-Dec-18 22.46 0.17809 0.25171 0.06336
ICICI
Prudential
Fund
19-Dec-18 22.42 1.42730 1.50092 2.25275
ICICI
Prudential
Fund
18-Dec-18 22.1 0.18100 0.25461 0.06483
ICICI 17-Dec-18 22.06 0.54397 0.61759 0.38142
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Prudential
Fund
ICICI
Prudential
Fund
14-Dec-18 21.94 -0.31905 -0.24543 0.06024
ICICI
Prudential
Fund
13-Dec-18 22.01 0.68151 0.75513 0.57022
ICICI
Prudential
Fund
12-Dec-18 21.86 2.10430 2.17792 4.74333
ICICI
Prudential
Fund
11-Dec-18 21.4 0.56075 0.63437 0.40242
ICICI
Prudential
Fund
10-Dec-18 21.28 -1.31579 -1.24217 1.54299
ICICI
Prudential
07-Dec-18 21.56 0.04638 0.12000 0.01440
ICICI
Prudential
Fund
06-Dec-18 21.55 -1.11369 -1.04007 1.08175
ICICI
Prudential
Fund
05-Dec-18 21.79 -1.19321 -1.11959 1.25348
ICICI 04-Dec-18 22.05 -0.04535 0.02827 0.00080
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Prudential
Fund
ICICI
Prudential
Fund
03-Dec-18 22.06 -0.04600 0.02762 0.00076
Average
return -0.0736
28.67162
Standard
Deviation 0.45511
Variance 0.6746
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RAPHICAL REPRESENTATION
INTERPRETATION: ICICI Prudential fund have been analyzed and it is found that
there has been volatility, in the returns. At starting the returns where high compared to
the current and average return is negative.
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CHAPTER-IV
Findings & Recommendations
62. 62 | P a g e
Findings:
As far as analysis is concerned, we found out that the HDFC Growth Fund was
among the best performers fund. Although all the funds are affected by the global meltdown,
(recession) still HDFC Growth Fund has better performed comparing to other funds for its systematic
and unsystematic risk. It offers advantages of diversification, market timing, and selectivity. In the
comparison of sample of funds, HDFC Growth fund is found highly diversified fund and because of
high diversification, it has reduced the total risk of portfolio.
Further, other funds were found very poor in diversification, market timing, and
selectivity. Although HDFC Top 200 Fund and Equity Fund performed better in terms of returns but
these suffered by the systematic risk (market volatility) and lack of diversification. For the further
clarification, we too studied the portfolio of HDFC Growth fund.
One of the findings that I came across is that generally, a good model of asset
classes is the one that can explain a large portion of the variance of returns on the assets and there
were some stocks in the fund portfolio, which were not aligned with strategy of the fund portfolio.
The optimal situation involves the selection that proceeds from sensible
assumptions, is carefully and logically constructed, and is broadly consistent with the data while
collecting the stocks for the portfolio. The portfolio was showing constructive outcome in long time
horizon and the results can be improved by making the minor changes in fund portfolio.
Hence, the portfolio theory teaches us that investment choices are made on the
basis of expected risk and returns and these expectations can be satisfied by having right mix of
assets.
SBI funds show a better risk-adjusted performance out of top four mutual funds.
It is found from the analyzed data that the investor‟s first priority is highreturn‟s then liquidity
and risk.
The four small cap equity funds of three months where ICICI,SBI HDFC,IDBI have high
volatility.
The data analysis of IDBI and ICICI equity funds have shown negative returns.
Recommendations:
Considering the above analysis, it can be noted that the three growth oriented mutual
funds (HDFC Equity Fund, HDFC Growth Fund and HDFC Top 200 fund) have performed better
than their benchmark indicators. Other funds such as HDFC Capital Builder Fund, HDFC Long term
Advantage Fund did not perform well even some performed negatively. Though HDFC Equity Fund,
HDFC Growth Fund and HDFC Top 200 fund have performed better than the benchmark of their
systematic risk (volatility) but with respect to total risk the fund have not outperformed the Market
Index. Growth oriented mutual funds are expected to offer the advantages of Diversification, Market
timing and Selectivity. In the sample, HDFC Equity Fund, HDFC Growth Fund and HDFC Top 200
fund is found to be diversified fund and because of high diversification, it has reduced total risk of the
portfolio. Whereas, others are low diversified and because of low diversification their total risk is
found to be very high. Further, the fund managers of these under performing funds are found to be
poor in terms of their ability of market timing and selectivity.
63. 63 | P a g e
The fund manager of HDFC Equity Fund, HDFC Growth Fund and HDFC Top 200
fund can improve the returns to the investors by increasing the systematic risk of the portfolio, which
in turn can be done by identifying highly volatile shares. Alternatively, these can take advantage by
diversification, which goes to reduce the risk if the same return is given to the investor at a reduced
risk level, the compensation for risk might seem adequate.
The fund manager of HDFC Capital Builder Fund, HDFC Long term Advantage Fund
can earn better returns by adopting the marketing timing strategy and selecting the under priced
securities. The fund manager can divide all securities into several asset classes and tries to
construct an efficient portfolio based on expected returns, risk, and correlations of indexes
representing these asset classes. The investment should be done in the bench mark indexes to get an
“efficient” portfolio in such a way that no other combination of these indexes would result in a
portfolio with a higher return for a given level of risk. It should be emphasized, however, that this is
not a fully efficient portfolio because information about correlations among individual securities
within an index and across the indexes is lost in the transition from individual securities to the
benchmarks that represent them.
These measures are more useful to investors who are putting their money into one
diversified fund and are able to use leverage or invest in the risk-free asset. When the investor is
investing in the different funds, the fund’s marginal contribution to the portfolio’s risk and return is
more important than its individual security characteristics. To construct an efficient portfolio, an
investor must take account of the correlations among the being considered.
It is not advisable to apply just procedure or approach for all situations at least when it
comes to investments though the used measures are highly reliable in the studies done on similar
veins. Even at this juncture it would still be recommended that instead of going ahead only on the
basis of risk and return, other indicators like new projects, sector impact, individual sentiments about
companies etc besides ‘common sense and intuition’ may also be looked into
1. Brand building:
Brand building is an exercise, which every business enterprise will have. Brand is the soul of an
institution; it survives on it, lives with it and cherishes it. Example: LIC Nomura Balanced
-Growth has a brand, every bank, insurance companies; mutualfund companies have got their own
brands.
2. Strength full Strategies:
Every AMC should try to turn into a more modern, a more vibrant, a more transparent and regulatory
compliance institution. It is with this in mind, every institution should try to come up with variety of
different type of products to fill different investment objectives
3. Marketing tools for total quality achievement:
1. Large Network.
2. Effective Man power
3. Distribution across the Market.
4. Customer relations(Building better relationships.
5. Value added services.
6. Better transparency level.
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BIBLIOGRAPHY
I.TEXT BOOKS
Donald E Fischer
Ronald J Jordan
H.Sadhak - Mutual Fund in India
II.WEB SITES
www.hdfcamc.com
www.bseindia.com
www.moneycontrol.com
www.hdfcfund.com
III. MAGAZINES
Business India
Business World
IV. JOURNALS
Journal of research in capital market.
International journal for innovating research in science&technology.
Journal of business and management.
V.NEWS PAPERS
Economic Times
Business Standard