29800444 a project on comparative analysis of hdfc mutual fund with other mutual funds in the city...
TRANSCRIPT
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
1/81
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
2/81
PROJJECTREPORTONPROECTREPORTONAACOMPARATIIVEANALYSIISCOMPARATVEANALYSSOFHDFCMUTUALFUNDWIITHCOMPARIISIIONOFHDFCMUTUALFUNDWTHCOMPARSONWIITHOTHERMUTUALFUNDWTHOTHERMUTUALFUNDIINCIITYOFJJAMSHEDPURNCTYOFAMSHEDPUR
AREPORTSUBMITTEDINPARTIALFULFILLMENTOFTHEREQUIREMENTOFPGDMPROGRAMOFKOUSTUVBUSINESSSCHOOL
SUBMITTEDTO:FACULTYGUIDEPROF.GOPALPRUSETHKOUSTUVBUSINESSSCHOOLBHUBANESWARSUBMITTEDBY:GOPALKUMARAGARWALDM-0829KOUSTUVBUSINESSSCHOOLBHUBANESWARPROJECTGUIDESHAILESHKUMARBANSALHDFCMUTUALFUNDJAMSHEDPUR
HDFCMUTUALFUND
2|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
3/81
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
4/81
CERTIFICATEBYGUIDEThisistocertifythatthefollowingstudentissubmittingtheprojectreporttitledAComparativestudyontheperformancebetweentwosectorialfundsinJamshedpur.ItistheoriginalandbonafideworksubmittedinpartialfulfillmentoftherequirementfortheawardofPGDMprogram.
Prof.GOPALPRUSETH(ProjectGuide)KBS,Bhubaneswar
HDFCMUTUALFUND
4|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
5/81
ACKNOWLEDGEMENTInthecourseofthisprojectIgotaninsightintothemutualfundindustry,cametoknowalotaboutthebasicworkingofanassetmanagementcompany,understoodhowthemutualfundsofdifferentfundhousesarecompared,learntvariouscomputationsandoverallgotapreviewofwhatajobinthemutualfundindustrywouldentail.FirstandforemostIamveryproudtobeastudentofKoustuvBusinessSchool,BhubaneswarandammostgratefulforhavingbeengiventhechancetoworkwithareputedcompanylikeHDFCMUTUALFUNDatthebeginningofmycareer.IwouldfailtodomydutyifIdidnttakethisopportunitytothankmyfacultyguide,Prof.GopalSirforhistimelyhelpandguidance.IwouldliketothankhimwholeheartedlyformakingmeworkhardersoastogainamoreindepthknowledgeofthesubjectwhichIamsurewillhelpmealotinthelongrunaswell.Iwouldsaythatthisprojectwouldnthavebeenthesamewithouthissupport,guidance,encouragementandconstantdemandforimprovement.Mycompanyguide,Mr.ShaileshKumarBansal,Managerisanotherpersonwhohasplayedakeyroleinthedevelopmentofmeasaperson,inthecompletionofthisprojectandinbeingeducatedaboutthemutualfundindustryingeneral.Withouttheknowledge,attentionandtimethathehasbestowedonme,thisprojectwouldsimplyhavebeenimpossible.Heistrulyaninspirationformeanddrovemetowardsworkingharderthanmyexpectationswhichsimplymadememorereadyforthecorporatelife.HetrulygavemethecorporateexposureIhadthoughtof.MyacknowledgementwouldbeincompleteifIdidntthankmyteammates.DuringthecourseofthisSIPwehavedevelopedacamaraderiewhichwasveryhealthyandenjoyable.Iamgratefulforeveryonessupportandhelpwhenneeded.Withoutthemthistrainingwouldnot
havebeenthesame.GOPALKUMARAGARWAL
HDFCMUTUALFUND
5|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
6/81
EXECUTIVESUMMARYThesignificantoutcomeofthegovernmentpolicyofliberalizationinindustrialandfinancialsectorhasbeenthedevelopmentofnewfinancialinstruments.Thesenewinstrumentsareexpectedtoimpartgreatercompetitivenessflexibilityandefficiencytothefinancialsector.GrowthanddevelopmentofvariousmutualfundproductsinIndiancapitalmarkethasprovedtobeoneofthemostcatalyticinstrumentsingeneratingmomentousinvestmentgrowthinthecapitalmarket.Thereisasubstantialgrowthinthemutualfundmarketduetoahighlevelofprecisioninthedesignandmarketingofvarietyofmutualfundproductsbybanksandotherfinancialinstitutionprovidinggrowth,liquidityandreturn.Inthiscontext,prioritization,preferencebuildingandclosemonitoringofmutualfundsareessentialsforfundmanagerstomakethisthestrongestandmostpreferredinstrumentinIndiancapitalmarketforthecomingyears.Withthedeclineinthebankinterestrates,frequentfluctuationsinthesecondarymarketandtheinherentattitudeofIndiansmallinvestorstoavoidrisk,itisimportantonthepartoffundmanagersandmutualfundproductdesignerstocombinevariouselementsofliquidity,returnandsecurityinmakingmutualfundproductsthebestpossiblealternativeforthesmallinvestorsinIndianmarket.Therearevariousparameterswhichaninvestorshouldconsiderbeforeinvestinginmutualfunds.Thecomparativeanalysisbetweentwomutualfundwillhelptheinvestortotakeappropriatedecisionbeforeinvestinginmutualfunds.
HDFCMUTUALFUND
6|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
7/81
TABLEOFCONTENTSDECLARATIONCERTIFICATEBYGUIDEACKNOWLEDGEMENTEXECUTIVESUMMARYTOPICS#1.INTRODUCTION2.ORGANISATIONOFMUTUALFUND3.CHARACTERISTICSOFMUTUALFUND4.OBJECTIVESOFMUTUALFUND5.STRUCTUREOFMUTUALFUND6.INVESTORPROFILE7.FACTORSIMPACTINGTHEINDUSTRY8.OPPURTUNITIES&THREATS9.BENEFITSOFMUTUALFUND10.CATEGORIESOFMUTUALFUND11.THEWAYTOINVESTINMUTUALFUND12.LEGALFRAMEWORKOFSEBI13.REGULATORYOFMUTUALFUND14.MUTUALFUNDININDIAATAGLANCE15.COMPANYDETAIL16.COMPETITORANALYSIS17.COMPARATIVEANALYSISBETWEENHDFC&TATAPGNO.1012131414171820222631323437425762
HDFCMUTUALFUND
7|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
8/81
18.FUTUREGROWTHDRIVERS19.FINANCIALANALYSES20.CONCLUSION21.SUGGESTIONS22.GLOSSARY23.BIBLIOGRAPHY24.QUESTIONAIRE
68717475777879
HDFCMUTUALFUND
8|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
9/81
PARTAINDUSTRYOVERVIEW
HDFCMUTUALFUND
9|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
10/81
INTRODUCTION
AMutualFundisatrustthatpoolsthesavingsofanumberofinvestorswhoshareacommonfinancialgoal.Themoneythuscollectedistheninvestedincapitalmarketinstrumentssuchasshares,debenturesandothersecurities.Theincomeearnedthroughtheseinvestmentsandthecapitalappreciationsrealizedaresharedbyitsunitholdersinproportiontothenumberofunitsownedbythem.ThusaMutualFundisthemostsuitableinvestmentforthecommonmanasitoffersanopportunitytoinvestinadiversified,professionallymanagedbasketofsecuritiesatarelativelylowcost.TheflowchartbelowdescribesbroadlytheworkingofaMutualFund.
HDFCMUTUALFUND
10|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
11/81
AMutualFundisabodycorporateregisteredwiththeSecuritiesandExchangeBoardofIndia(SEBI)thatpoolsupthemoneyfromindividual/corporateinvestorsandinveststhesameonbehalfoftheinvestors/unitholders,inEquityshares,Governmentsecurities,Bonds,CallMoneyMarketsetc,anddistributestheprofits.Intheotherwords,aMutualFundallowsinvestorstoindirectlytakeapositioninabasketofassets.MutualFundisamechanismforpoolingtheresourcesbyissuingunitstotheinvestorsandinvestingfundsinsecuritiesinaccordancewithobjectivesasdisclosedinofferdocument.Investmentsinsecuritiesarespreadamongawidecross-sectionofindustriesandsectorsthustheriskisreduced.Diversificationreducestheriskbecauseallstocksmaynotmoveinthesamedirectioninthesameproportionatsametime.Investorsofmutualfundsareknownasunitholders.Theinvestorsinproportiontotheirinvestmentssharetheprofitsorlosses.Themutualfundsnormallycomeoutwithanumberofschemeswithdifferentinvestmentobjectiveswhicharelaunchedfromtimetotime.AMutualFundisrequiredtoberegisteredwithSecuritiesExchangeBoardofIndia(SEBI)whichregulatessecuritiesmarketsbeforeitcancollectfundsfromthepublic.
HDFCMUTUALFUND
11|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
12/81
ORGANISATIONOFAMUTUALFUND:TherearemanyentitiesinvolvedandthediagrambelowillustratestheorganizationalsetupofaMutualFund:
MutualFundsdiversifytheirriskbyholdingaportfolioofinsteadofonlyoneasset.Thisisbecausebyholdingallyourmoneyinjustoneasset,theentirefortunesofyourportfoliodependonthisoneasset.Bycreatingaportfolioofavarietyofassets,thisriskissubstantiallyreduced.MutualFundinvestmentsarenottotallyriskfree.Infact,investinginMutualFundscontainsthesameriskasinvestinginthemarkets,theonlydifferencebeingthatduetoprofessionalmanagementoffundsthecontrollablerisksaresubstantiallyreduced.AveryimportantriskinvolvedinMutualFundinvestmentsisthemarketrisk.However,thecompanyspecificrisksarelargelyeliminatedduetoprofessionalfundmanagement.
HDFCMUTUALFUND
12|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
13/81
CHARACTERISTICSOFAMUTUALFUND:AMutualFundactuallybelongstotheinvestorswhohavepooledtheirfunds.TheownershipofthemutualfundisinthehandsoftheInvestors.AMutualFundismanagedbyinvestmentprofessionalandotherServiceproviders,whoearnsafeefortheirservices,fromthefunds.ThepoolofFundsisinvestedinaportfolioofmarketableinvestments.Thevalueoftheportfolioisupdatedeveryday.Theinvestorsshareinthefundisdenominatedbyunits.Thevalueoftheunitschangeswithchangeintheportfoliovalue,everyday.Thevalueofoneunitofinvestmentiscallednetassetvalue(NAV).TheinvestmentportfolioofthemutualfundiscreatedaccordingtothestatedInvestmentobjectivesoftheFund.
HDFCMUTUALFUND
13|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
14/81
OBJECTIVESOFAMUTUALFUND:ToProvideanopportunityforlowerincomegroupstoacquirewithoutmuchdifficulty,propertyintheformofshares.ToCatermainlyoftheneedofindividualinvestors,whosemeansaresmall?ToManageinvestorsportfoliothatprovidesregularincome,growth,Safety,liquidity,taxadvantage,professionalmanagementanddiversification.
STRUCTUREOFAMUTUALFUND:-
THESTRUCTURECONSISTSOF:14|Page
HDFCMUTUALFUND
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
15/81
SPONSOR:Sponsoristhepersonwhoactingaloneorincombinationwithanotherbodycorporateestablishesamutualfund.Sponsormustcontributeatleast40%ofthenetworthoftheInvestmentmanagedandmeettheeligibilitycriteriaprescribedundertheSecuritiesandExchangeBoardofIndia(MutualFund)Regulations,1996.ThesponsorisnotresponsibleorliableforanylossorshortfallresultingfromtheoperationoftheSchemesbeyondtheinitialcontributionmadebyittowardssettingupoftheMutualFund.TRUST:TheMutualFundisconstitutedasatrustinaccordancewiththeprovisionsoftheIndianTrustsAct,1882bytheSponsor.ThetrustdeedisregisteredundertheIndianRegistrationAct,1908.TRUSTEE:Trusteeisusuallyacompany(corporatebody)oraBoardofTrustees(bodyofindividuals).ThemainresponsibilityoftheTrusteeistosafeguardtheinterestoftheunitholdersandensurethattheAMCfunctionsintheinterestofinvestorsandinaccordancewiththeSecuritiesandExchangeBoardofIndia(MutualFunds)Regulations,1996,theprovisionsoftheTrustDeedandtheOfferDocumentsoftherespectiveSchemes.Atleast2/3rddirectorsoftheTrusteeareindependentdirectorswhoarenotassociatedwiththeSponsorinanymanner.
HDFCMUTUALFUND
15|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
16/81
ASSETMANAGEMENTCOMPANY(AMC):
TheAMCisappointedbytheTrusteeastheInvestmentManageroftheMutualFund.TheAMCisrequiredtobeapprovedbytheSecuritiesandExchangeBoardofIndia(SEBI)toactasanassetmanagementcompanyoftheMutualFund.Atleast50%ofthedirectorsoftheAMCareindependentdirectorswhoarenotassociatedwiththeSponsorinanymanner.TheAMCmusthaveanetworthofatleast10coresatalltimes.
REGISTRARANDTRANSFERAGENT:
TheAMCifsoauthorizedbytheTrustDeedappointstheRegistrarandTransferAgenttotheMutualFund.TheRegistrarprocessestheapplicationform,redemptionrequestsanddispatchesaccountstatementstotheunitholders.TheRegistrarandTransferagentalsohandlescommunicationswithinvestorsandupdatesinvestorrecords.
HDFCMUTUALFUND
16|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
17/81
INVESTORSPROFILE:Aninvestornormallyprioritizeshisinvestmentneedsbeforeundertakinganinvestment.Sodifferentgoalswillbeallocatedtodifferentproportionsofthetotaldisposableamount.Investmentsforspecificgoalsnormallyfindtheirwayintothedebtmarketasriskreductionisofprimeimportance,thisistheareafortherisk-averseinvestorsandhere,MutualFundsaregenerallythebestoption.Onecanavailofthebenefitsofbetterreturnswithaddedbenefitsofanytimeliquiditybyinvestinginopen-endeddebtfundsatlowerrisk,thisriskofdefaultbyanycompanythatonehaschosentoinvestin,canbeminimizedbyinvestinginMutualFundsasthefundmanagersanalyzethecompaniesfinancialsmoreminutelythananindividualcandoastheyhavetheexpertisetodoso.Movinguptheriskspectrum,therearepeoplewhowouldliketotakesomeriskandinvestinequityfunds/capitalmarket.However,sincetheirappetiteforriskisalsolimited,theywouldratherhavesomeexposuretodebtaswell.Fortheseinvestors,balancedfundsprovideaneasyrouteofinvestment,armedwithexpertiseofinvestmenttechniques,theycaninvestinequityaswellasgoodqualitydebttherebyreducingrisksandprovidingtheinvestorwithbetterreturnsthanhecouldotherwisemanage.Sincetheycanreshuffletheirportfolioaspermarketconditions,theyarelikelytogeneratemoderatereturnseveninpessimisticmarketconditions.
HDFCMUTUALFUND
17|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
18/81
Nextcomestherisktakers,risktakersbytheirnature,wouldnotbeaversetoinvestinginhigh-riskavenues.Capitalmarketsfindtheirfancymoreoftenthannot,becausetheyhavehistoricallygeneratedbetterreturnsthananyotheravenue,provided,themoneywasjudiciouslyinvested.Thoughtheriskassociatedisgenerallyonthehighersideofthespectrum,thereturn-potentialcompensatesfortheriskattached.
FACTORSIMPACTINGTHEINDUSTRY:PESTAnalysis:PoliticalFactors:a)GovernmentRegulation:SEBIregulatestheindustryandeverydecisiontakenbythemimpacttheindustryveryquickly.b)Stableconstituency:Themutualfundindustrycantakelongtermdecisionifthegovernmentisstable.c)Fiscalpolicy:taxstructureplaysaveryimportantroleinthegrowthoftheindustry.Ifthetaxstructurewillbehighthantherewillbelesssavingsandinvestment.WehaveseentheinterestratereducingcontinuouslywhichboosttheindustrytosellproductswhicharebetterthantheFDs,PF,NSCandKVPs.
HDFCMUTUALFUND
18|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
19/81
Economicfactors:d)Marketperformance:Thelastfiveyearswitnessedasharpriseinthemarkets.Themutualfundindustrybasicallyworksparallelwiththemarkets.Suppose,ifthemarketsalwaysbeondownside,thentheinvestorswillnotbesocomfortabletoinvest.Thiswillreducethemarketsizedrastically.e)GlobalStandards:Astheindustrywillgrowbetter,Indiabeingaglobaleconomy,theMFindustryhastomatchtotheglobalmatureMFmarkets.Theyhavetogivedueemphasisonproductinnovation,costreductionandpenetration.f)Inflation:priceriseaffectsinterestrateandreducesthechancesofinvestment.
Socialfactors:g)Consumerbehaviour:thisisveryunpredictableandbasedonsentimentsgetschangedveryfrequently,whichsometimesmakessellingofproductsdifficult.h)Income:Therichpeopleareinbiggercities,sothemutualfundindustryismuchmoreconcentratedthere.
Technologicalfactors:Thisistheeraofinformationtechnologyandduetonetbanking,onlinetransaction,onlineRTGS,clearingsystemhelpstheindustryalot.
HDFCMUTUALFUND
19|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
20/81
OPPORTUNITIESANDTHREATS:-
a)RealEstatesectorboom:TheRealestatehasalwaysbeenoneofthepreferredinvestmentavenuesfortheIndianinvestor.Andwhatbetterwayforthesmallerinvestorstoparticipateinthisboomthantohavearealestatemutualfund.AMChastocomeupwiththestructuredproductsinthissegmentandshouldtakecompetitiveadvantage.
b)PenetrationtoRuralmarkets:Theindustryhastotakethemselvestothelocalandruralmarketstoincreasethemarketsize.Also,thecostofsettingupbusinessinbiggercitiesishugecomparetosmallercities.ThiswillreducetheAMCbusinesscost.
c)ConcentrationofCorporateInvestors:Mutualfundshavebecomeoverlyattractivetocorporateinvestorsbecauseofhigherreturnsthanbankdepositsandabilitytodistributecapitalgainstax.Corporateinvestorsaccountformorethan55%oftheAUM(byvalue).ItisclearthatthelackofgrowthinfundsundermanagementinIndiaisbecauseoftheabsenceoflongterminvestors.Corporateinvestorstakeprofitsfrequentlyresultingindestructioninthecompoundgrowthinfundsundermanagement.Distributorsareforcedtopassonmorecommissionstocompanies,whilefundcompaniesarecompelledtoofferfundswithwaferthinmargins.
HDFCMUTUALFUND
20|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
21/81
d)Retailinvestorsloseoutinthesensethattheycontinuetopayhigherexpenses.
e)HigherReturnsofAlternativeDebtInstruments:Governmentguaranteedschemesprovideriskfreereturnsatcompetitiveratesofreturns.Thisiswhymutualfundshavedifficultycompetingretailbusiness.
f)Hugescopeforexpansion:Thereareonly33AMCwhichisverysmallfigurecomparedtothematuremarkets.
g)Distribution:Oneofthemajorfactorsimpactingthegrowthofmutualfundindustryistheabsenceofanyregulationindistributionofmutualfunds.Mutualfundinvestorsneed
distributorswhoareabletoinformthemabouttheefficacyofdistributionproductforaparticularriskprofileandstageinlifecycle.LackofdistributorawarenessandtheabsenceofanydisclosuresfromdistributorsmakemissellingofMFproductscommonplace.
HDFCMUTUALFUND
21|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
22/81
BENEFITSOFMUTUALFUND
TherearenumerousbenefitsofinvestinginmutualfundsandoneofthekeyreasonsforitsphenomenalsuccessinthedevelopedmarketslikeUSandUKistherangeofbenefitstheyoffer,whichareunmatchedbymostotherinvestmentavenues.Wehaveexplainedthekeybenefitsinthissection.Thebenefitshavebeenbroadlysplitintouniversalbenefits,applicabletoallschemesandbenefitsapplicablespecificallytoopenendedschemes.
HDFCMUTUALFUND
22|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
23/81
1.AFFORDABILITYAmutualfundinvestsinaportfolioofassets,i.e.bonds,shares,etc.dependingupontheinvestmentobjectiveofthescheme.Aninvestorcanbuyintoaportfolioofequities,whichwouldotherwisebeextremelyexpensive.EachunitholderthusgetsanexposuretosuchportfolioswithaninvestmentasmodestasRs.500/-.ThisamounttodaywouldgetyoulessthanquarterofanInfosysshare!Thusitwouldbeaffordableforaninvestortobuildaportfolioofinvestmentsthroughamutualfundratherthaninvestingdirectlyinthestockmarket.2.DIVERSIFICATIONThenuclearweaponinyourarsenalforyourfightagainstRisk.Itsimplymeansthatyoumustspreadyourinvestmentacrossdifferentsecurities(stocks,bonds,moneymarketinstruments,realestate,fixeddepositsetc.)anddifferentsectors(auto,textile,informationtechnologyetc.).Thiskindofadiversificationmayaddtothestabilityofyourreturns,forexampleduringoneperiodoftimeequitiesmightunderperformbutbondsandmoneymarketinstrumentsmightdowellenoughtooffsettheeffectofaslumpintheequitymarkets.Similarlytheinformationtechnologysectormightbefaringpoorlybuttheautoandtextilesectorsmightdowellandmayprotectyourprincipalinvestmentaswellashelpyoumeetyourreturnobjectives.3.VARIETYMutualfundsofferatremendousvarietyofschemes.Thisvarietyisbeneficialintwoways:first,itoffersdifferenttypesofschemesto
HDFCMUTUALFUND
23|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
24/81
investorswithdifferentneedsandriskappetites;Secondly,itoffersanopportunitytoaninvestortoinvestsumsacrossavarietyofschemes,bothdebtandequity.Forexample,aninvestorcaninvesthismoneyinaGrowthFund(equityscheme)andIncomeFund(debtscheme)dependingonhisriskappetiteandthuscreateabalancedportfolioeasilyorsimplyjustbuyaBalancedScheme.4.PROFESSIONALMANAGEMENTQualifiedinvestmentprofessionalswhoseektomaximizereturnsandminimizeriskmonitorinvestor smoney.Whenyoubuyintoamutualfund,youarehandingyourmoneytoaninvestmentprofessionalthathasexperienceinmakinginvestmentdecisions.ItistheFundManager sjobto(a)findthebestsecuritiesforthefund,giventhefund sstatedinvestmentobjectives;and(b)keeptrackofinvestmentsandchangesinmarketconditionsandadjustthemixoftheportfolio,asandwhenrequired.5.TAXBENEFITSAnyincomedistributedafterMarch31,2002willbesubjecttotaxintheassessmentofallUnitholders.However,asameasureofconcessiontoUnitholdersofopen-endedequity-orientedfunds,incomedistributionsfortheyearendingMarch31,2003,willbetaxedataconfessionalrateof10.5%.IncaseofIndividualsandHinduUndividedFamiliesadeductionuntoRs.9,000fromtheTotalIncomewillbeadmissibleinrespectofincomefrominvestmentsspecifiedinSection80L,including
HDFCMUTUALFUND
24|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
25/81
incomefromUnitsoftheMutualFund.UnitsoftheschemesarenotsubjecttoWealth-TaxandGift-Tax.6.REGULATIONSSecuritiesExchangeBoardofIndia(SEBI),themutualfundsregulatorhasclearlydefinedrules,whichgovernmutualfunds.Theserulesrelatetotheformation,administrationandmanagementofmutualfundsandalsoprescribedisclosureandaccountingrequirements.Suchahighlevelofregulationseekstoprotecttheinterestofinvestors.7.CONVENTIONALADMINISTRATIONInvestinginaMutualFundreducespaperworkandhelpsyouavoidmanyproblemssuchasbaddeliveries,delayedpaymentsandfollowupwithbrokersandcompanies.MutualFundssaveyourtimeandmakeinvestingeasyandconvenient.ReturnPotentialOveramediumtolongterm;MutualFundshavethepotentialtoprovideahigherreturnastheyinvestinadiversifiedbasketofselectedsecurities.8.LIQUIDITYInopen-endedmutualfunds,youcanredeemallorpartofyourunitsanytimeyouwish.Someschemesdohavealock-inperiodwhereaninvestorcannotreturntheunitsuntilthecompletionofsuchalock-inperiod.
HDFCMUTUALFUND
25|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
26/81
9.CONVENIENCEAninvestorcanpurchaseorsellfundunitsdirectlyfromafund,throughabrokerorafinancialplanner.TheinvestormayoptforaSystematicInvestmentPlan(SIP)oraSystematicWithdrawalAdvantagePlan(SWAP).Inadditiontothisaninvestorreceivesaccountstatementsandportfoliosoftheschemes.
CATEGORIESOFMUTUALFUNDS:
HDFCMUTUALFUND
26|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
27/81
MutualFundcanbeclassifiedasfollows:BasedontheStructure:1.OPEN-ENDEDMUTUALFUNDS:TheholdersofthesharesintheFundcanresellthemtotheissuingMutualFundcompanyatthetime.Theyreceiveinturnthenetassetsvalue(NAV)ofthesharesatthetimeofre-sale.SuchMutualFundCompaniesplacetheirfundsinthesecondarysecuritiesmarket.Theydonotparticipateinnewissuemarketasdopensionfundsorlifeinsurancecompanies.Thustheyinfluencemarketpriceofcorporatesecurities.Open-endinvestmentcompaniescansellanunlimitednumberofSharesandthuskeepgoinglarger.TheopenendMutualFundCompanyBuysorsellstheirshares.ThesecompaniessellnewsharesNAVplusaLoadingormanagementfeesandredeemsharesatNAV.Inotherwords,thetargetamountandtheperiodbothareindefiniteinsuchfunds.2.CLOSED-ENDEDMUTUALFUNDS:AclosedendFundisopenforsaletoinvestorsforaspecificperiod,afterwhichfurthersalesareclosed.Anyfurthertransactionforbuyingtheunitsorrepurchasingthem,Happeninthesecondarymarkets,whereclosedendFundsarelisted.Thereforenewinvestorsbuyfromtheexistinginvestors,andexistinginvestorscanliquidatetheirunitsbysellingthemtootherwillingbuyers.InaclosedendFunds,thusthepooloffundscantechnicallybekeptconstant.
HDFCMUTUALFUND
27|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
28/81
Theassetmanagementcompany(AMC)however,canbuyouttheunitsfromtheinvestors,inthesecondarymarkets,thusreducingtheamountoffundsheldbyoutsideinvestors.ThepriceatwhichunitscanbesoldorredeemedDependsonthemarketprices,whicharefundamentallylinkedtotheNAV.InvestorsinclosedendFundsreceiveeithercertificatesorDepositoryreceipts,fortheirholdingsinaclosedendmutualFund.Basedontheirinvestmentobjective:
1.EQUITYFUNDS:Thesefundsinvestinequitiesandequityrelatedinstruments.Withfluctuatingshareprices,suchfundsshowvolatileperformance,evenlosses.However,shorttermfluctuationsinthemarket,generallysmoothensoutinthelongterm,therebyofferinghigherreturnsatrelativelylowervolatility.Atthesametime,suchfundscanyieldgreatcapitalappreciationas,historically,equitieshaveoutperformedallassetclassesinthelongterm.Hence,investmentinequityfundsshouldbeconsideredforaperiodofatleast3-5years.Itcanbefurtherclassifiedas:i)Indexfunds-Inthiscaseakeystockmarketindex,likeBSESensexorNiftyistracked.Theirportfoliomirrorsthebenchmarkindexbothintermsofcompositionandindividualstockweightages.ii)Equitydiversifiedfunds-100%ofthecapitalisinvestedinequitiesspreadingacrossdifferentsectorsandstocks.
HDFCMUTUALFUND
28|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
29/81
iii)DividendYieldfunds-Itissimilartotheequitydiversifiedfundsexceptthattheyinvestincompaniesofferinghighyielddividends.iv)Thematicfunds-Invest100%oftheassetsinsectorswhicharerelatedthroughsometheme.e.g.-Aninfrastructurefundinvestsinpower,construction,cementssectorsetc.v)Sectorfunds-Invest100%ofthecapitalinaspecificsector.e.g.-Abankingsectorfundwillinvestinbankingstocks.vi)ELSS-EquityLinkedSavingSchemeprovidestaxbenefittotheinvestors.2.BALANCEDFUNDS:Theirinvestmentportfolioincludesbothdebtandequity.Asaresult,ontherisk-returnladder,theyfallbetweenequityanddebtfunds.Balancedfundsaretheidealmutualfundsvehicleforinvestorswhopreferspreadingtheirriskacrossvariousinstruments.Followingarebalancedfundsclasses:i)Debt-orientedfunds-Investmentbelow65%inequities.ii)Equity-orientedfunds-Investatleast65%inequities,remainingindebt.
3.DEBTFUND:Theyinvestonlyindebtinstruments,andareagoodoptionforinvestorsaversetoideaoftakingriskassociatedwithequities.Therefore,theyinvestexclusivelyinfixed-incomeinstrumentslikebonds,debentures,GovernmentofIndiasecurities;andmoneymarketinstrumentssuchascertificatesofdeposit(CD),commercialpaper(CP)
HDFCMUTUALFUND
29|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
30/81
andcallmoney.Putyourmoneyintoanyofthesedebtfundsdependingonyourinvestmenthorizonandneeds.i)Liquidfunds-Thesefundsinvest100%inmoneymarketinstruments,alargeportionbeinginvestedincallmoneymarket.ii)GiltfundsST-Theyinvest100%oftheirportfolioingovernmentsecuritiesofandT-bills.iii)Floatingratefunds-Investinshort-termdebtpapers.Floatersinvestindebtinstrumentswhichhavevariablecouponrate.iv)Arbitragefund-Theygenerateincomethrougharbitrageopportunitiesduetomis-pricingbetweencashmarketandderivativesmarket.Fundsareallocatedtoequities,derivativesandmoneymarkets.Higherproportion(around75%)isputinmoneymarkets,intheabsenceofarbitrageopportunities.v)GiltfundsLT-Theyinvest100%oftheirportfolioinlong-termgovernmentsecurities.vi)IncomefundsLT-Typically,suchfundsinvestamajorportionoftheportfolioinlong-termdebtpapers.vii)MIPs-MonthlyIncomePlanshaveanexposureof70%-90%todebtandanexposureof10%-30%toequities.viii)FMPs-fixedmonthlyplansinvestindebtpaperswhosematurityisinlinewiththatofthefund.
HDFCMUTUALFUND
30|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
31/81
THEWAYTOINVESTINMUTUALFUNDMutualfundsnormallycomeoutwithanadvertisementinnewspaperspublishingthedateoflaunchofthenewschemes.Investorscanalsocontacttheagentsanddistributorsofmutualfundswhoarespreadalloverthecountryfornecessaryinformationandapplicationforms.Formscanbedepositedwithmutualfundsthroughtheagentsanddistributorswhoprovidesuchservices.Nowdays,thepostofficesandbanksalsodistributetheunitsofmutualfunds.However,theinvestorsmaypleasenotethatthemutualfundsschemesbeingmarketedbybanksandpostofficesshouldnotbetakenastheirownschemesandnoassuranceofreturnsisgivenbythem.Theonlyroleofbanksandpostofficesistohelpin.distributionofmutualfundsschemestotheinvestors.Investorsshouldnotbecarriedawaybycommission/giftsgivenby
agents/distributorsforinvestinginaparticularscheme.Ontheotherhandtheymustconsiderthetrackrecordofthemutualfundandshouldtakeobjectivedecision.ONETIMEINVESTMENTTheamountthathastobeinvestedinonetimeisknownasOnetimeInvestment.Theinvestorhastopaythewholeamountatonce.TheminimumamountisRs.5000andmaximumisaspertheinvestorsChoice.ThisinvestmentisgenerallypreferredforthebusinessmanwhoAreabletopayatonetime.
HDFCMUTUALFUND
31|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
32/81
SYSTEMATICINVESTMENTPLAN(SIP)
TheamountthathastobeinvestedthroughsamemonthlyinstallmentisknownasSystematicInvestmentPlan.TheinvestorhastopaytheminimumamountRs.1000monthlyforallequityandbalancedschemeslikethatfor6months.AndRs.500monthlyforTaxSaverschemelikethatfor12months.TheminimumamountthattheinvestorhastoinvestisRs6000andmaximumaspertheirchoice.Thistypeofinvestmentisgenerallypreferredforthesalariedpeople.
LEGALFRAMEWORKOFSEBI&AMFIREGULATORYASPECTSOFMUTUALFUNDS:
Intheyear1992,SecuritiesandexchangeBoardofIndia(SEBI)Actwaspassed.TheobjectivesofSEBIaretoprotecttheinterestofinvestorsinsecuritiesandtopromotethedevelopmentofandtoregulatethesecuritiesmarket.SEBIformulatespoliciesandregulatesthemutualfundstoprotecttheinterestoftheinvestors.
HDFCMUTUALFUND
32|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
33/81
GUIDELINESOFSEBI&AMFIMutualfundsareregulatedbytheSEBI(mutualFund)Regulations,1996.SEBIistheregulatorofallfunds,exceptoffshorefunds.Bank-sponsoredmutualfundsarejointlyregulatedbySEBIandRBI.Thebank-sponsoredfundcannotprovideaguaranteewithoutRBIPermission.RBIregulatesmoneyandgovernmentsecuritiesmarkets,inwhichmutualFundsareinvested.Listedmutualfundsaresubjecttothelistingregulationsofstockexchange.SincetheAMCandTrusteeCompanyarecompanies,theDepartmentofCompanyaffairsregulatethem.TheyhavetosendperiodicreportstotheROC(RegisterofCompanies)andtheCLB(CompanyLawBoard)istheappellateauthority.Investorscannotsuethetrust,astheyarethesameasthetrustandcantsuethemselves.UTIdoesnothaveaseparatesponsorandAMC.UTIisgovernedbytheUTIAct,1963andisvoluntarilyunderSEBIRegulations.UTIcanborrowaswellaslendalsoengageinotherfinancialservicesactivities.OnlyAMFIcertifiedagentscansellMutualFundunits.MutualFundsCompanyisrequiredtoupdatetheNAVoftheschemeontheAMFIwebsiteonadailybasisincaseofopen-endedscheme.
HDFCMUTUALFUND
33|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
34/81
REGULATORYOFMUTUALFUNDININDIA
SEBIThecapitalmarketregulatesthemutualfundsinIndia.SEBIrequiresallmutualfundstoberegisteredwiththem.SEBIissuesguidelinesforallmutualfundsoperations-investment,accounts,expensesetc.Recently,ithasbeendecidedthatMoneyMarketMutualFundsofregisteredmutualfundswillberegulatedbySEBIthrough(MutualFund)Regulations1996.RBIRBI,asupervisoroftheBanksownedMutualFunds-AsbanksinIndiacomeundertheregulatoryJurisdictionofRBI,banksownedfundstobeundersupervisionofRBIandSEBI.RBIhassupervisoryresponsibilityoverallentitiesthatoperateinthemoneymarkets.MINISTRYOFFINANCE(MOF)MinistryofFinanceultimatelysupervisesboththeRBIandtheSEBIandplaystheroleofapexauthorityforanymajordisputesoverSEBIguidelines.
HDFCMUTUALFUND
34|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
35/81
COMPANYLOWBOARDRegistrarofcompaniesiscalledCompanyLowBoard.AMCsofMutualFundsarecompaniesregisteredunderthecompaniesAct1956andthereforeanswerabletoregulatoryauthoritiesempoweredbytheCompaniesAct.STOCKEXCHANGEStockExchangesareSelf-regulatoryorganizationssupervisedbySEBI.ManyclosedendedfundsofAMCsarelistedasstockexchangesandaretradedlikeshares.OFFICEOFTHEPUBLICTRUSTEEMutualFundbeingpublictrustisgovernedbytheIndianTrustAct1882.TheBoardoftrusteeortheTrusteesCompanyisaccountabletotheofficeofpublictrustee,whichinturnreportstotheCharitycommissioner.
HDFCMUTUALFUND
35|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
36/81
RISKV/S.RETURN:
HDFCMUTUALFUND
36|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
37/81
MUTUALFUNDSININDIAATAGLANCEThemutualfundindustryinIndiastartedin1963withtheformationofUnitTrustofIndia,attheinitiativeoftheGovernmentofIndiaandReserveBankthe.ThehistoryofmutualfundsinIndiacanbebroadlydividedintofourdistinctphases:-
Phase-I
Phase-IIPhasesofMutualFundIndustryinIndia
Phase-IV
Phase-III
HDFCMUTUALFUND
37|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
38/81
FirstPhase1964-87
UnitTrustofIndia(UTI)wasestablishedon1963byanActofParliament.ItwassetupbytheReserveBankofIndiaandfunctionedundertheRegulatoryandadministrativecontroloftheReserveBankofIndia.In1978UTIwasde-linkedfromtheRBIandtheIndustrialDevelopmentBankofIndia(IDBI)tookovertheregulatoryandadministrativecontrolinplaceofRBI.ThefirstschemelaunchedbyUTIwasUnitScheme1964.Attheendof1988UTIhadRs.6,700croresofassetsundermanagement.SecondPhase1987-1993(EntryofPublicSectorFunds)
1987markedtheentryofnon-UTI,publicsectormutualfundssetupbypublicsectorbanksandLifeInsuranceCorporationofIndia(LIC)andGeneralInsuranceCorporationofIndia(GIC).SBIMutualFundwasthefirstnon-UTIMutualFundestablishedinJune1987followedbyCanbankMutualFund(Dec87),PunjabNationalBankMutualFund(Aug89),IndianBankMutualFund(Nov89),BankofIndia(Jun90),BankofBarodaMutualFund(Oct92).LICestablisheditsmutualfundinJune1989whileGIChadsetupitsmutualfundinDecember1990.Attheendof1993,themutualfundindustryhadassetsundermanagementofRs.47,004crores.
HDFCMUTUALFUND
38|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
39/81
ThirdPhase1993-2003(EntryofPrivateSectorFunds)
Withtheentryofprivatesectorfundsin1993,anewerastartedintheIndianmutualfundindustry,givingtheIndianinvestorsawiderchoiceoffundfamilies.Also,1993wastheyearinwhichthefirstMutualFundRegulationscameintobeing,underwhichallmutualfunds,exceptUTIweretoberegisteredandgoverned.TheerstwhileKothariPioneer(nowmergedwithFranklinTempleton)wasthefirstprivatesectormutualfundregisteredinJuly1993.
The1993SEBI(MutualFund)RegulationsweresubstitutedbyamorecomprehensiveandrevisedMutualFundRegulationsin1996.TheindustrynowfunctionsundertheSEBI(MutualFund)Regulations1996.
Thenumberofmutualfundhouseswentonincreasing,withmanyforeignmutualfundssettingupfundsinIndiaandalsotheindustryhaswitnessedseveralmergersandacquisitions.AsattheendofJanuary2003,therewere33mutualfundswithtotalassetsofRs.1,21,805crores.TheUnitTrustofIndiawithRs.44,541croresofassetsundermanagementwaswayaheadofothermutualfunds.
HDFCMUTUALFUND
39|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
40/81
FourthPhasesinceFebruary2003
InFebruary2003,followingtherepealoftheUnitTrustofIndiaAct1963UTIwasbifurcatedintotwoseparateentities.OneistheSpecifiedUndertakingoftheUnitTrustofIndiawithassetsundermanagementofRs.29,835croresasattheendofJanuary2003,representingbroadly,theassetsofUS64scheme,assuredreturnandcertainotherschemes.TheSpecifiedUndertakingofUnitTrustofIndia,functioningunderanadministratorandundertherulesframedbyGovernmentofIndiaanddoesnotcomeunderthepurviewoftheMutualFundRegulations.ThesecondistheUTIMutualFundLtd,sponsoredbySBI,PNB,BOBandLIC.ItisregisteredwithSEBIandfunctionsundertheMutualFundRegulations.WiththebifurcationoftheerstwhileUTIwhichhadinMarch2000morethanRs.76,000croresofassetsundermanagementandwiththesettingupofaUTIMutualFund,conformingtotheSEBIMutualFundRegulations,andwithrecentmergerstakingplaceamongdifferentprivatesectorfunds,themutualfundindustryhasentereditscurrentphaseofconsolidationandgrowth.AsattheendofSeptember,2004,therewere29funds,whichmanageassetsofRs.153108croresunder421schemes.
HDFCMUTUALFUND
40|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
41/81
Thegraphindicatesthegrowthofassetsovertheyears.
NoteErstwhileUTIwasbifurcatedintoUTIMutualfundandtheSpecifiedUndertakingoftheUnitTrustofIndiaeffectivefromFebruary2003.TheAssetsundermanagementoftheSpecifiedUndertakingoftheUnitTrustofIndiahasthereofbeenexecutedfromthetotalassetsoftheindustryasawholefromFebruary2003onwards.
HDFCMUTUALFUND
41|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
42/81
PARTBCOMPANYDETAIL
HDFCMUTUALFUND
42|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
43/81
MANWITHAMISSIONIfevertherewasamanwithamissionitwasHasmukhbhaiParekh,FounderandChairmanEmeritus,ofHDFCGroupwholeftthisearthlyabodeonNovember18,1994.BorninatraditionalbankingfamilyinSurat,Gujarat,Mr.Parekhstartedhisfinancialcareerat
HarkisandassLukhmidassaleadingstockbrokingfirm.Thefirmcloseddowninthelateseventies,but,longbeforethat,hewentontobecomeatoweringfigureontheIndianfinancialscene.In1956hebeganhislifelongfinancialaffairwiththeeconomicworld,asGeneral.Managerofthenewly-formedIndustrialCreditandInvestmentCorporationofIndia(ICICI).HerosetobecomeChairmanandcontinuedsotillhisretirementin1972.Attheripeageof60,Hasmukhbhaistartedhisseconddynamiclife,evenmoreillustriousthanhisfirst.HisvisionformortgagefinanceforhousinggavebirthtotheHousingDevelopmentFinanceCorporationitwasatrend-setterforhousingfinanceinthewholeAsiancontinent.Hewasalsoawriterinhisownright.Thereareover200publishedarticlesbyhim...
HDFCMUTUALFUND
43|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
44/81
In1992,theGovernmentofIndiahonouredhimwiththePadmaBhushanAward.TheLondonSchoolofEconomics&PoliticalScienceconferredFellowship.HewasoneoftheFounderMembersoftheCentreforAdvancementofPhilanthropy,anditsChairmantill1993.HetookactiveinterestintheBombayCommunityPublicTrust,designedspecificallytoservetheneedsoftheMr.H.T.PAREKHisconferredthePadmaBhushanbytheGovernmentofIndiaintheyear1992.
on
him
an
Honorary
citysunderprivilegedcitizens.WhenMr.DeepakParekhtookoverasChairmanfromHasmukhbhai,hesaid:
TakingoverfromH.T.Parekhisaformidabletask;hisvisionbroughtaboutnotonlyaninstitution,butanentireconceptwhichhasproveditselftobeoflastingimportance.TodaywearethelargestresidentialmortgagefinanceinstitutioninIndia,withanetworthofRs.2,703croresasofMarch31,2006andanassetbaseofoverRs.22,000crores.Wealsoaimtoincreasetheflowofresourcesto
thehousingsectorbyintegratingthehousingfinancesectorwiththeoveralldomesticfinancialmarkets.Overaspanof25years,HDFChasbecomethepioneerinhousingfinanceinIndiaandmadeitpossibleforovertwomillionFamiliestoowntheirhomes,throughhousingloansworthoverRs.42,000crores.
HDFCMUTUALFUND
44|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
45/81
ABOUTCOMPANYHDFC:-
VISIONSTATEMENT:-
HDFCMUTUALFUND
45|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
46/81
ORGANISATIONSTRUCTURE:TheHDFCAMChasthebelowgivenorganisationalstructureandthedifferentfunctionaldepartmentareheadedbydifferentpeople.
ManagingDirectorMr.MilindBarve
CIO-EDMr.PrashantJain
CFOMr.RahulBhandari
HeadOperationsMr.SureshBabu
HeadClientServicingMr.JohnMathews
HeadComplianceMr.YezdiKhariwala
HeadSalesMr.KiranKaushik
HeadPMSMr.PankajChopra
HeadHRMr.AlokSheopurkar
HDFCMUTUALFUND
46|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
47/81
LINEOFBUSINESS:
PMSHDFCAMCMutualFund
Retail
CorporateBusiness
HDFCMUTUALFUND
47|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
48/81
HDFCASSETMANAGEMENTCOMPANYLIMITED(AMC)InternalStructure&processes:
ManagementTeam:HDFCTrusteecompanyLimited:acompanyincorporatedundertheCompaniesAct,1956istheTrusteetotheMutualFundvidetheTrustdeeddatedJune8,2000,asamendedfromtimetotime.HDFCTrusteeCompanyLimitedisawhollyownedsubsidiaryofHDFCLimited.
HDFCAssetManagementCompanyLtd(AMC)wasincorporatedundertheCompaniesAct,1956,onDecember10,1999,andwasapprovedtoactasanAssetManagementCompanyfortheHDFCMutualFundbySEBIvideitsletterdatedJuly3,2000.TheregisteredofficeoftheAMCissituatedatRamonHouse,3rdFloor,H.T.ParekhMarg,169,BackbayReclamation,Churchgate,Mumbai-400020.IntermsoftheInvestmentManagementAgreement,theTrusteehasappointedtheHDFCAssetManagementCompanyLimitedtomanagetheMutualFund.ThepaidupcapitaloftheAMCisRs.45.161crore.
ThepresentequityshareholdingpatternoftheAMCisasfollows:Particulars%ofthepaidupequitycapital
HDFCLimitedStandardLifeInvestmentsLimited
6040
HDFCMUTUALFUND
48|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
49/81
HDFCLtd.60.0%
HDFCAssetManagementCompanyLtd.
StandardLifeInvestments40.0%
HDFCMutualFund
HDFCAssetManagementCompany(AMC)isthefirstAMCinIndiatohavebeenassignedtheCRISILFundHouseLevel1rating.ThisisitshighestFundGovernanceandProcessQualityRatingwhichreflectsthehighestgovernancelevelsandfundmanagementpracticesatHDFCAMCItistheonlyfundhousetohavebeenassignedthisratingfortwoyearsinsuccession.Overthepast,wehavewonanumberofawardsandaccoladesforourPerformance.HDFCMutualFundisoneofthelargestmutualfundsandwell-establishedfundhouseinthecountrywithconsistentandaboveaveragefundperformanceacrosscategoriessinceitsincorporationonDecember10,1999.
HDFCMUTUALFUND
49|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
50/81
Whileourpastexperiencedoesmakeusaveteran,butwhenitcomestoinvestments,wehaveneverbelievedthattheexperienceisenough.ThesinglemostimportantfactorthatdrivesHDFCMutualFundisitsbelieftogivetheinvestorthechancetoprofitablyinvestinthefinancialmarket,withoutconstantlyworryingaboutthemarketswings.Torealizethisbelief,HDFCMutualFundhassetuptheinfrastructurerequiredtoconductallthefundamentalresearchandbackitupwitheffectiveanalysis.Ourstrongemphasisonmanagingandcontrollingportfolioriskavoidschasingthelatestfadsandtrends.INTERNALANALYSISOFHDFCAMCHDFChasgrowninleapsandboundsaftertakingZurichin2003,nowitisthethirdlargestprivatecompanyinAssetmanagementcompany.InJamshedpur,HDFChasnearly20%ofthetotalAUMandaccordingtotheCAMSreport,inAUMunderCAMSwehave35%marketshareandwedogrosssalesof70%everymonth.AUMMarch.2003March.2004March.2005March.2006March.2007March.2008March.20096482
GrowthRate-------
14985131.18150100.172155043.572835831.594629163.245795625.19
Thebelowgivengraphdepictsthesame.
HDFCMUTUALFUND
50|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
51/81
DFCAMChas4%marketofthetotalassetmanagementbusiness.Thepie-chartshowsthemarketshareoftheotherAMCsandofHDFC.
28%
50%
5%
4%
5%
8%
OTHERS(29)UTIHDFCMutualFundPrudentialICICIMutualFundRelianceMutualFundGrandTotal
HDFCMUTUALFUND
51|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
52/81
STRENGTHSANDWEAKNESSES:STRENGTHS:
a)Widerangeofproducts:TheAMChasgotgoodnumberofdifferentiatedproductsintheentireassetclass.b)Consistentperformance:Thefundshavegivenconsistentperformanceover10years.c)Experiencedteam:HDFChasfundmanagerswithrichexperiencewhoseconsistentperformancehasmadethisAMCCRISILlevelonefundhouse.d)StrongCompliance:TheAMChasverystrongcomplianceofindustrysetrulestoprotecttheinterestoftheinvestors.e)Riskmanagementteam:AMChasaseparateriskmanagementteamwhichconstantlymonitortheriskexposurerelatedtodifferentfundmanagement.WEAKNESSES:
a)Restrictivereach:HDFCbusinessismoreconcentratedonurbanareas.HDFChasverylimitedoffices.b)LessAggressiveinMarketingandexecution:HDFCdoesmatchtheaggressivenessrequiredintheindustryandareslowinexecution.
HDFCMUTUALFUND
52|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
53/81
HDFCMUTUALFUNDATAGLANCE
NameofUnit
:
HDFCMUTUALFUND
Address
:
GayatriEnclave,2ndFloor,"K"Road,Bistupur,Jamshedpur-831001.:PrivateSector
FormofOrganization
ContactNumber
:Tel.:18002336767(Toll-free)Telefax:06572249730/2249691
EstablishmentyearSponsors:
:
2007HousingDevelopmentFinanceCorporationLimited(HDFC),StandardLifeInvestmentsLimited.
Management
:Trustee.HDFCAssetManagementCompanyLimited(AMC).
WorkingHoursWebsite
::
9.30amto5.30p.mwww.hdfcfund.com
HDFCMUTUALFUND
53|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
54/81
ACHIEVEMENTANDAWARDSHDFCPrudencefundhasbeenrankedICRA-MFR1,andHasBeenawardedtheGoldAwardforBestPerformanceinthecategoryofOpenEndedBalancedSchemeforoneyearPeiodEndingDec31,2005.
HDFCTaxsaverfundhasbeenrankedICRA-MFR1,andHasBeenSilverawardforSecodBestPerformanceinthecategoryofOpenEndedEquityLinkedSavingScheme(ELSS)forThreeyearPeriodEndingDec31,2005.
HDFCMIP~LTPhasbeenrankedICRA-MFR1,andHasbeenawardedtheGoldAwardForBstPerformanceinthecategoryofOpenEndedMarginalEquitySchemeforoneyearPeriodEndingDec31,2005.
HDFCMUTUALFUND
54|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
55/81
HDFCPROVIDES:PersonalizedServiceWebelieveinprovidingapersonalizedserviceenablingindividualattentiontoachieveyourinvestmentgoal.ProfessionalAdviceWeprovideprofessionaladviceonequityanddebtportfoliowithanobjectivetoprovideconsistentlong-termreturnwhiletakingcalculatedmarketrisk.Ourapproachhelpsyoutobuildapropermixofportfolio,notjusttopromoteoneindividualproduct.Henceyourlongtermobjectivesarebestserved.Long-termRelationshipWebelievesteadywealthcreationrequireslong-termvision,itcantbeachievedinashortspanoftime.Toachievethisoneneedstotakeadvantageofshort-termmarketopportunitywhilenotloosingsightoflongtermobjective.Hencewepartnerallourclientsintheirobjectiveofachievingtheirlong-termVision.AccesstoResearchReportsThroughus,youwillhaveaccesstocertainresearchworkofCRISIL,sothatyouwillbenefitfromtheexpertknowledgeofeconomistsandanalystsofoneoftheleadingfinancialresearchandratingcompanyofIndia.Thisthirdpartyresearchgivesyouacomfortofgettingunbiasedadvicetomakeaproperdecisionforyourinvestment.
HDFCMUTUALFUND
55|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
56/81
Transparency&ConfidentialityThroughemailyouwillgetaregularportfoliostatementfromus.Youwillalsobegivenawebaccesstoviewatyourconveniencethedetailsofyourinvestmentsanditsperformance.Accesstoyourportfolioisrestrictedtoyouandourmonitoringsystemenablesustodetectanyunauthorizedaccesstoyourinvestments.FlexibilityTofacilitatesmoothdealingandconsistentattention,allourclientswillbeservicedbytheirrespectiverelationshipexecutive.Thisallowsustoprovidetailormadeadvicetoachieveyourinvestmentobjective.HassleFreeInvestmentOurrelationshippersonwillprovideyouwithacustomizedserviceatyourconvenience.Wetakecareofalltheadministrativeaspectsofyourinvestmentsincludingsubmissionofapplicationformstofundhousesalongwithmonthlyreportingonoverallstateofyourinvestmentsandperformanceofyourportfolio.MutualfundsarealltheragetodaysimplybecausepeoplehaverealizedthesymbioticrelationshipthataninvestorshareswiththeassetmanagementcompaniesascomparedtotheevervolatileandruthlessworldofSENSEX.
HDFCMUTUALFUND
56|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
57/81
COMPETITORANALYSIS:TataMutualFund:TataAssetManagementPrivateLimitedisveryoldhouseandiswellplacedinthemarket.TataMutualFundhasAUMofRs.21304Crores.SizeandGrowth:TataMFopeneditsofficeinJamshedpurfouryearsago.Sincethanithasdonegoodbusiness.TatahavebrandadvantageinJamshedpur,asinvestorstrustTATAgroup.JamshedpurwhichisamarketofRs1300cr,TataMFhasnearly10-12%ofthemarketshareofJamshedpur.InJharkhandtheyhavefouroffices.InternalStructure&processes:TataMutualFundhasbeenconstitutedasatruston9thMay1995inaccordancewiththeprovisionsoftheIndianTrustsAct,1882withTataSonsLimited(TSL)andTataInvestmentCorporationLimited(TICL)asthesponsersandthesettlers.TheMutualFundwasregisteredwithSEBIon30thTataMutualFund(TMF)hasbeenconstitutedasaTrustinaccordancewiththeprovisionsoftheIndiansTrustsAct,1882andisregisteredasaTrustunderTheIndianRegistrationAct,1908.TMFwasregisteredwithSecurities&ExchangeBoardofIndia(SEBI)andcommencedoperationbylaunching
HDFCMUTUALFUND
57|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
58/81
itsfirstschemeon30thAugust1995.TataSonsLimited(TSL)andTataInvestmentCorporationLtd(TICL)aretheSponsersandtheSettlors.
ShareHoldingPatternOfTataAssetManagementLtd(TAML)
TatasonsLtd.67.91%
TataAssetManagementLtd.
TataInvestmentCorporationLtd32.09%
TataMutualFund
BoardOfDirectors:-
BoardOfTataTrusteeCompanyPrivateLimitedMr.S.M.Datta(Chairman)Mr.I.Hussain(Director)Mr.J.N.Godrej(Director)Mr.NowrozeJ.N.Vazifdar(Director)
HDFCMUTUALFUND
58|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
59/81
BoardOfDirectorsOfTataAssetManagmentLimited:Mr.F.K.Kavarana(Chairman)Mr.VedPrakashChaturvedi(ManagingDirector)Mr.A.R.Gandhi(Director)Mr.M.L.Apte(Director)Mr.A.Hasib(Director)
LineofBusiness:
TataMutualFund
Mutualfundbusiness
Portfoliomanagement
Strengths&Weaknesses:Strengths:a)TrustedParentcompany:TataAssetManagementLtdisapartoftheTatagroup,oneofIndia slargestandmostrespectedindustrialgroups.JamshedpuristhehomegroundforTataMFandtheyenjoygreatsupportandtrust.
HDFCMUTUALFUND
59|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
60/81
b)Highpayoutstructure:TheypaymoreincentiveandbrokeragetotheredistributorsincomparisonofotherAMCs,whichgivesthemsomeedgetoattractthedistributorstoselltheproduct.Weaknesses:a)Focussedononeproduct:AtJamshedpur,TataMFisfocussedononlyoneproductthatisTataInfrastructureFundwhichsomehownarrowstheirproductdiversification.b)LackofAggression:TheteaminJamshedpurlackaggressionandactiveness,theydonotpushthereproductstoomuchinthemarkets.Productsgetsoldoftherebrandpresence.c)Services:TheAMCisnotgivinggoodserviceandtheresponsetimeisslow.ProjectedFutureStrategy:Tomeetthecompetition,Tatamutualfundwillhavetoexpandtherebusinessandpenetrationbyincreasingthenumberofbranchesandmanpower.Distributor/Businessmodel:ThedistributormodelisdividedintotwopartsthatisIFAsandBanksandnationaldistributors.ThentheIFAsarecategorisedintwocategoriesi.e.preferredandbasic.Preferredgets2.25%brokerageandbasicgets2.10%.Formakingpreferredpartnerthereisnosuchsetofrule.Also,TatahasschemespecificbrokeragestructurelikeinTatainfrastructuretheypay3.00%,insomeschemes2.25%andinsome1.75%.
HDFCMUTUALFUND
60|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
61/81
Products(NFOs/schemes):
TatahasnotgotsogoodwiderangeofproductsinallcategoriesandmaximumAUMofthereisconcentratedindebtthemaximumpartisindebt.No.ofschemesNo.ofschemesincludingoptionsEquitySchemesDebtSchemesShorttermdebtSchemesEquity&DebtMoneyMarketGiltFund9837537291147026
Fromthetherepatterntheyaremorecashingbusinessontheinfrastructuretheme.TillnowtheyhavetwoinfrastructurebasedfundsandoneNFOisrunningwhichisalsoInfrastructurebasedfund.Recently,theyhadalsofiledofferdocumentwithSEBIforthereTatasmallandMidcapInfrastructurefund.
HDFCMUTUALFUND
61|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
62/81
ComparativeAnalysisofHDFCAMCwithTATA:i)Infrastructure:SCHEMEFUNDCLASSAveragemkt.cap.(inCrores)InceptiondateMAY.2009MAY.2009HDFCINFRASTRUCTUREEquitydiversified75406.10TATAINFRASTRUCTUREEquitydiversified21304.00
FromthefollowingdatawecananalyisethatHDFCMUTUALFUNDhasfaredbetterthanTATAMUTUALFUND..
ii)SWOTanalysisofHDFCAMCwithTataAMC.
HDFCMUTUALFUND
62|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
63/81
SWOTAnalysisofHDFCAssetManagementCompanyLtd.
BuySmartDraw!-purchasedcopiesprintthisdocumentwithoutawatermark.Visitwww.smartdraw.comorcall1-800-768-3729.
HDFCMUTUALFUND
63|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
64/81
SWOTAnalysisofTataAssetManagementLtd
BuySmartDraw!-purchasedcopiesprintthisdocumentwithoutawatermark.Visitwww.smartdraw.comorcall1-800-768-3729.
HDFCMUTUALFUND
64|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
65/81
iii)AdditionalServicesOfferedByHDFCMutualFunds:-
HDFCMFOnline,
whichenablesyoutotransactonlineonhttps://investor.hdfcfund.com/mfonline/24hoursaday,7daysaweek,365daysayear.OnHDFCMFOnline,youcanPurchase.Redeem.Switch.ViewAccountDetails.ViewPortFolioValuation.DownloadAccountStatements........Online!!TheServicesofferedinHDFCMFOnline:eDocs:HDFCMutualFundOffersyoutheconvenienceofrecievingdocumentsbyemailatnoadditionalcosttoyou.ePayouts:Saveyourtimeandexperiencetheconvenienceofreceivingyourdividendandredemptionpayout(s),ifany,directlyintoyourbankaccount.ThisfacilitycanbeoptedbyselectingRBI sNationalElectronicFundTransfer(NEFT)orElectronicClearingService(ECS*).NEFTandECSfacilitatesfaster,reliableandtroublefreecreditofredemption/dividendintoyourbankaccount.Itisalsooneofthesafestmodeofpaymentasiteliminatespossibilitiesoffraudulentencashmentofredemption/dividendinstrumentsoranypossiblelosswhileinpostaltransittoyou.
HDFCMF
Mobile,Nowtransactingwithmobilecanalsobedone.HDFCofferthefacilitytransactingusingthemobilephoneanywhereandanytime.OnHDFCMFMobile,youcanPurchase.Redeem.Switch.
HDFCMUTUALFUND
65|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
66/81
ViewAccountDetails.ViewPortFolioValuation.RequestforAccountStatements.CheckNAV.
NEFTFacility(NationalElectronicFundTransfer):
ThisisafacilityintroducedbytheReserveBankofIndia(RBI).NEFTisanationwideelectronicfundstransfersystemtomovefundsfromanybankbranchinanypartofcountrytoanyotherbankbranchinanotherpartofthecountry.Whowillbenefitfromthisservice?Thispayoutchannelwillbeparticularlybeneficialtoallsuchinvestorswhosemandatedbankaccountisnotinthelistofbankswithwhomwepresentlyhaveadirectcreditarrangementforcreditingtheirdividend/redemptionproceeds.ThisservicewillalsobenefitallsuchinvestorsatlocationswhereaHDFCMutualFundInvestorServiceCentre(ISC)/aHDFCBankbranch,isnotpresentandsuchlocationsarecoveredbytheRBIforpaymentsthroughtheNEFTmode.WhataretheadvantagesofNEFToverthecurrentpayoutmode?Investorswhosecurrentpaymentsaresettledthroughademanddraft(DD)/PayOrder(PO)fortheirdividend/redemptionpayoutsaretheprimebeneficiaries.SuchDDs/POsarethendispatchedtotheinvestor,whichwouldtakeacoupleofdaystoreach.Incomparison,throughNEFTthebeneficiarygetsthecreditusuallyonthesamedayorthenextdaydependingonthetimeofsettlement.Thismakespaymentsettlementfaster,saferandriskfree.
HDFCMUTUALFUND
66|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
67/81
iv)NAVPerformance:NAVOFHDFCGROWTHFUNDisRs.NAV58.91,Dateis2ndJuly,2009.NAVOFTATAGROWTHFUNDisRs.31.4833,Dateis2ndJuly,2009.&NAVOFHDFCEQUITYFUNDisRs.NAV177.86,Dateis2ndJuly,2009.NAVOFTATAPUREGROWTHFUNDisRs.72.34Dateis2ndJuly,2009.
v)DividendHistory:HDFCGROWTHFUNDcurrentdividendis25.02TATAGROWTHFUNDcurrentdividendis14.04&HDFCEQUITYFUNDcurrentdividendis35.702TATAEQUITYFUNDcurrentdividendis28.6397
SobyabovedatawecananalyisethatHDFCGROWTHFUNDisbetterforinvestorwholookforhighdividends.
HDFCMUTUALFUND
67|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
68/81
THEFUTUREGROWTHDRIVERS:HigherGDPGrowth.India shugefinancialspreadInvestmentSystem.Systematicinvestmentplanningratiowhichisprojectedtodoubleby20092010.Fastpacedurbanizationrisefrom28to40%by2020.GrowingworkingclasspopulationandMiddleclassexpandingby3040millioneveryyear.Upwardmigrationofhouseholdincomelevels.FasteconomicDevelopment.IncreasingdisposableIncomewiththeservicesector.Cheaper(declininginterestrates)&easierfinanceSchemes.Increasingdispensableincomeofruralagriculturesector.Govt.policypromotestaxinvestment&planningSec80C.IncreasinglevelofFDIincountry.EmergenceofIndiaasBPOandIThub.
HDFCMUTUALFUND
68|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
69/81
Equitymarketshavebeenbuoyantoverthepastfewmonthsprimarilyonthebackofexpectedgoodcorporateperformance,stronggloballiquidityandstrongflowstoemergingmarkets.Therushofplayersintothemutualfundindustryduringthelastdecadecouldbeattributedtolowentrybarriers,bothregulatoryandcompetitive,andthedesireoftheexistingfinancialplayerstobroad-basetheiractivitiesinthefinancialsector.ThelastfewyearsalsohighlightstheemergenceofthemutualfundindustryasamajorforceinIndianfinancialmarkets.WiththetotalAssetsUnderManagement(AUM)increasingfromRs.1,13,005crinMarch2000toRs.565469CrinFeb.2008,the
industry sgrowthhasbeennothingbutexceptional.Andifsizeisthemeasureofdominance,theIndianmutualfundindustrycannowboastofthat.Soletsnowtakealookattheoverallgrowthofthemutualfundindustryinthelastdecade.
HDFCMUTUALFUND
69|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
70/81
Tosumitup,wecanenumeratethatthehostofthingswhichsuggestthatthemutualfundindustryisallsettoenteraperiodofhighgrowthare:
Arobusteconomy,fledglingstockmarket,increasingawarenessandacceptanceofmutualfundsamonginvestors,strongdomesticcurrency,andhealthycorporateperformances.
HDFCMUTUALFUND
70|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
71/81
FINANCIALANALYSISObjectiveofthestudyTheprimaryobjectiveofthisstudyistoanalyzethefinancialperformanceofthetwoleadingSectorialMutualFundschemesofHDFCandTATAonthebasisofvariousfinancialparameters,whichwillbediscussedlaterinthefollowingsectionsofthereport.Thiswillhelpinthefollowingways:AcompleteandcomprehensivefinancialanalysiscanbemadebeforemakingadecisiontoinvestinaparticularMutualFundscheme.Anin-depthandcompleteapproachtowardsmanagingaportfolioofinvestmentscanbemadebyanalyzingthefundsonthebasisofthesefinancialparameters.ThisstudywillalsogiveusabriefoverviewofthequalityandconsistencyofthefundmanagementinkeepingupwiththevariousexpectationsandhopesthatthemutualfundinvestorshaveintheAssetManagementCompany(AMC).Italsohelpsustocomparetheindividualfundperformancewiththeperformanceoftheoverallmarket,includingtheBombayStockExchange(BSE),andNationalStockExchange(NSE).Italsohelpsustostudytherisk-returntrade-offi.e.whetherthehand-in-handrelationshipbetweenRiskandReturnholdstrueincaseofMutualfundsornot.
HDFCMUTUALFUND
71|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
72/81
RationaleofchoosingthesefundsTheabovechosenfundshavehadamarketpresenceofatleastthreeyears.AlsothegovernmentofIndiahasalargeinterestinIndiangrowthstorywhichisincompletewithouthaveamuchimpetusininfrastructuresector.Hence,withthisfactwecanhaveafairideaoftheiracceptabilityinthemarket.Thebasicrationaleofchoosingthesefundsistohaveandpresentabriefideaofthecurrentmutualfundsmarketandtounderstandthelatesttrendsinthemarket.DataCollectionAllthedatausedforthestudywassecondarydata.Thisdatawascollectedfromthefollowingsources:FundsFactSheetsMagazinesJournalInternetKeyinformationmemorandumofvariousschemesMehodologyTheprojectreportismadepreciselykeepinginmindtheAssetmanagementbusinessinJamshedpur.Therefore,Ihaddoneprimaryaswellassecondarydatacollectiontofacilitatemyfindings.Inprimarydatacollection,Ihavemadeaquestionnairerelatingtosales,servicesanddistributionservicesoftheAssetmanagementcompany.Thesamplesizeis40personswhichincludeindividualARNs,
HDFCMUTUALFUND
72|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
73/81
DistributionhouseRMs,Bankingstaffsandsomecustomers.ThedatawascollectedandthecollatedtogiveabriefideaaboutwhichAMCisgoodinproducts,salesandservices.Thequestionnairealsoshowssometraitslikedependability,trustandsuitabilityoftheAMCsincontexttothevariousrequirementsofthedistributors.Thesecondarydatawascollectedfromtheabyssofdifferentwebsitesandonlinearticlesofexperts.Therawdatawasthencompiledandanalysedusingdifferenttools.PrimaryDatacollection:TheprimarydataisbasicallyconsistingofProducts(offerings,innovationandfundperformance),Services(responsetime,reliability,premiumservices)andDistribution(brokeragesandincentives).
Secondarydatacollection:Itiscollectedfromdifferentwebsites;thisprojectismadeofmoreofsecondarydatacollection.
HDFCMUTUALFUND
73|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
74/81
CONCLUSION:HDFCEquityFundhasaabilitytospotthesectortrends&ithasdeliveredhandsomely.InCurrentstatusitemergedasthethirdbestperformingdiversifiedequityfund.
HDFCMUTUALFUND
74|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
75/81
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
76/81
8.AverysmallpartmarkethasbeencoverbyHDFCMF.ItcanincreasethecircleofitsbusinessinsmallandruralareasofeverystateandcitiesofIndiawheretheyanfindahugebusiness.
9.Touproottheinvestmentlevelthecompanyshouldgivetrainingprogrammetofinancialagentswhoapproachtheinvestorfortheinvestments.AndtheyshouldbeawareofallthebenefitsofthemutualFunds.10.CompanyshouldundertaketheCampaign,Roadshows,
Advertisementandother
typeofPublicityfortheeffective
awarenessofdifferentschemesthatareavailableinthemarket.11.Thecompanyshouldarrangeseminarsandpresentations,givingdetailideaaboutsecuritiesandbenefitsofinvestmentinmutualfund.
HDFCMUTUALFUND
76|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
77/81
GLOSSARYSHORTFORMSAMCAssetManagementCompany.AMFIAssociationofMutualFundofIndia.AUMAssetunderManagement.BSEFIIBombayStockExchange.ForeignInstituteofInvestor.FIIcaninvestinMutualFunds.TheyinvestthroughtheNon-residentrupeeaccount.GILTGovernmentofIndiaLinkedTreasury.TheseFundsarethosethatinvestonlyingovernmentsecurities.IPOIRPInitialPublicOffer.InvestorRiskProfile.
MIPMonthlyInvestmentPlan.MTMMarkettoMarket.NARNetAmountatRisk.NAVetAssetValue.NSENationalStockExchange.ODOfferDocumentisthemostimportantsourceofinformationfortheinvestors.AbridgedversionoftheODiscalledasKeyInformationMemorandum(KIM).PARVALUEItissaidasfacevalue.SARSumatRiskSIPSystematicInvestmentPlan
SWPSystematicWithdrawalPlanWDMWholesaleDebtMarket
HDFCMUTUALFUND
77|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
78/81
BIBLIOGRAPHY1.www.investsmartindia.com2.www.amfiindia.com3.www.mutualfundsindia.com4.www.valueresearchonline.com5.www.investopedia.com6.www.bcg.com7.www.tatamutual.com8.www.google.com9.www.hdfcfund.com10.www.wikepedia.org
HDFCMUTUALFUND
78|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
79/81
QUESTIONAIREQ1):Amongthefollowingwhichmutualfundhouseisthebetterfundhouseinthetermsofproducts?a)TataMutualFundb)HDFCMutualFundc)Others()
Q2):Outofthefollowingwhichfundhousegivesyouandyourcustomerbettersatisfactioninthetermsofsalessupport?a)TataMutualFundb)HDFCMutualFundc)Others()
Q3):Amongthefollowingwhichmutualfundhousegivesyoupremiumservicesandaftersalesservices?a)TataMutualFundb)HDFCMutualFundc)Others()
Q4):Whichmutualfundishavingmoreeffectivestrategyregardingthedistributionservicesintermsofbrokerageandincentives?a)TataMutualFundb)HDFCMutualFundc)Others()
Q5):Whichmutualfundismoreaggressive&innovativeintermsofmarketingandsalesi.e.comingwiththeNFOandnewproducts?a)TataMutualFundb)HDFCMutualFundc)Others()
Q6)Whichfundhouseisbetterinthetermsoffundperformanceinlongandshortrun?a)TataMutualFundb)HDFCMutualFundc)Others()
Q7)Whichfundhousesemployeeyoufeelmorecomfortablediscussingyoursalesactivities?a)TataMutualFundb)HDFCMutualFundc)Others()
HDFCMUTUALFUND
79|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
80/81
Q8)Whichfundhouseismorereliabletoworkwith:a)TataMutualFundb)HDFCMutualFundc)Others()
Q9):Whichofthefollowingfundhousegivesyouquickresponsetoyourqueries?a)TataMutualFundb)HDFCMutualFundc)Others()
Q10):Whichofthefollowingfundhouseyoufeeloverallgoodtoworkwith?
a)TataMutualFund
b)HDFCMutualFund
c)Others(
)
AnySuggestions:
HDFCMUTUALFUND
80|Page
-
7/31/2019 29800444 a Project on Comparative Analysis of Hdfc Mutual Fund With Other Mutual Funds in the City of Jamshed
81/81