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A Report On comparative study on the performance of hdfc and icici prudential mutual funds Submitted By: Shubhransu kumar patel

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Page 1: Atul Project

A

Report

On

comparative study on the

performance of hdfc and icici

prudential mutual funds

Submitted By:Shubhransu kumar patel

Page 2: Atul Project

TABLE OF CONTENTS

TABLE OF CONTENTS................................................................................................................................2

ACKNOWLEDGEMENTS...........................................................................................................................4

EXECUTIVE SUMMARY............................................................................................................................5

MUTUAL FUNDS IN INDIA........................................................................................................................6

STRUCTURE OF THE INDIAN MUTUAL FUND INDUSTRY ............................................................6RECENT TRENDS IN MUTUAL FUND INDUSTRY .............................................................................7

ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI).......................................................................9

THE THREE BASIC FEATURES OF MUTUAL FUNDS......................................................................11

HOW TO INVEST IN MUTUAL FUND....................................................................................................12

RIGHTS OF A MUTUAL FUND UNIT HOLDER .................................................................................13

ADVANTAGES OF MUTUAL FUND........................................................................................................15

LIMITATIONS OF MUTUAL FUNDS......................................................................................................18

PARTIES INVOLVED IN MUTUAL FUND DEALINGS.......................................................................19

FREQUENTLY USED TERMS..................................................................................................................20

NET ASSET VALUE (NAV) .................................................................................................................20SALE PRICE .........................................................................................................................................20REPURCHASE PRICE.............................................................................................................................20REDEMPTION PRICE.............................................................................................................................20SALES LOAD...........................................................................................................................................20REPURCHASE OR ‘BACK-END’ LOAD ..............................................................................................21SYSTEMATIC INVESTMENT PLAN (SIP)...........................................................................................21SYSTEMATIC WITHDRAWAL PLAN (SWP).......................................................................................21SYSTEMATIC TRANSFER PLAN (STP)...............................................................................................21EQUITY LINKED SAVING SCHEMES (ELSS).....................................................................................21THE GOOD PICKS...................................................................................................................................22

TYPES OF MUTUAL FUNDS....................................................................................................................25

BY STRUCTURE......................................................................................................................................25B Y I NVESTMENT O BJECTIVE .............................................................................................................................2 6 OTHER SCHEMES...................................................................................................................................27S PECIAL S CHEMES ..........................................................................................................................................2 8

PLANS OF MUTUAL FUNDS....................................................................................................................29

G ROWTH PLAN ...............................................................................................................................................2 9 D IVIDEND P LAN .............................................................................................................................................2 9

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BASIS OF COMPARISON OF VARIOUS SCHEMES OF MUTUAL FUNDS.....................................31

1 BETA.....................................................................................................................................................31

2 ALPHA..................................................................................................................................................31

3 R-SQUARED.........................................................................................................................................32

4 SHARPE RATIO...................................................................................................................................32

5 TREYNOR RATIO................................................................................................................................33

6 STANDARD DEVIATION...................................................................................................................33

7 NAV......................................................................................................................................................33

ANALYSIS OF TOP 10 MUTUAL FUNDS...............................................................................................35

C OMPARISON OF TEN MUTUAL FUND SCHEMES OF HDFC M UTUAL F UND AND P RUDENTIAL ICICI M UTUAL F UND .....35

ASSET MANAGEMENT COMPANIES (AMCS)....................................................................................45

BRIEF DESCRIPTION ABOUT SOME OF THE AMCS IS:..................................................................46

FUTURE OF MUTUAL FUNDS IN INDIA..............................................................................................53

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Contents1. Executive Summary

2. Objective of Study

3. Introduction - Mutual Fund in India

4. Growth & Performance of Mutual Fund in India

5. Structure of the Indian Mutual Fund Industry

6. Recent Trend in Mutual Fund Industry

7. Association of Mutual Fund in India (AMFI)

8. The Objectives of Association of Mutual Fund

9. The Sponsor of Association of Mutual Fund

10. The Three Basic Features of Mutual Fund

11. How to Invest in Mutual Fund

12. Rights of a Mutual Fund Unit Holder

13. Advantages of Mutual Fund

14. Limitations of Mutual Fund

15. Types of Mutual Funds

16. Plans For Mutual Fund

17. Information About HDFC Mutual Fund and ICICI Prudential Mutual Fund

18. Comparison of Mutual Fund

19. Asset Management Companies (AMCS)

20. Brief Description About Some of the AMCs

21. Conclusion 22. Findings23. Suggestion24. Bibliography

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EXECUTIVE SUMMARY

This report gives one an insight into the mutual funds in

India. I have tried my level best to incorporate the readings and

the information.

The first section of this report talks about the different

types of mutual funds along with a brief description of AMFI, the

regulatory body of mutual funds.

The second section gives a definition of all the terms

which are frequently used while dealing in mutual funds. This

section also discusses all performance on which I have

analyzed different mutual fund schemes of Prudential ICICI

Mutual Fund and HDFC Mutual Fund.

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OBJECTIVE OF THE STUDY

Main objectives of our study is:-

To know the growth and performance of mutual fund in

India.

Structure of the Indian mutual fund industry.

Steps for investment in mutual fund.

To know the performance of HDFC mutual fund and ICICI

Pru mutual fund.

To know the portfolio record of HDFC mutual fund

schemes and ICICI mutual fund schemes.

To supply information towards the investors regarding the

mutual fund in which they should invest.

Provide informations regarding Asset Management

Companies (AMCs).

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MUTUAL FUNDS IN INDIA

A mutual fund is simply 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 pooled

money into specific securities (usually stocks or bonds). When

one invests in a mutual fund, he is buying shares (or portions)

of the mutual fund and becoming a shareholder of the fund.

The income earned through these investments and the

capital appreciations realized are shared by its unit holders in

proportion to the number of units owned by them. Thus a

Mutual Fund is the most suitable investment for the common

man as it offers an opportunity to invest in a diversified,

professionally managed basket of securities at a relatively low

cost. The flow chart below describes broadly the working of a

mutual fund.

While the concept of individuals coming together to

invest money collectively is not new, the mutual fund in its

present form is a 20th century phenomenon. In fact, mutual

funds gained popularity only after the Second World War.

Globally, there are thousands of firms offering tens of

thousands of mutual funds with different investment

objectives. Today, mutual funds collectively manage almost

as much as or more money as compared to banks.

A draft offer document is to be prepared at the time of

launching the fund. Typically, it pre specifies the investment

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objectives of the fund, the risk associated, the costs involved

in the process and the broad rules for entry into and exit from

the fund and other areas of operation.

In India, as in most countries, these sponsors need

approval from a regulator, SEBI (Securities exchange Board of

India) in our case. SEBI looks at track records of the sponsor

and its financial strength in granting approval to the fund for

commencing operations. A sponsor then hires an asset

management company to invest the funds according to the

investment objective. It also hires another entity to be the

custodian of the assets of the fund and perhaps a third one to

handle registry work for the unit holders (subscribers) of the

fund.

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GROWTH AND PREFORMANCE OF

MUTUAL FUND

In India the mutual fund industry has been monopolized by

the unit trust of India ever since 1963. Now the commercial

banks like the SBI, Canada Bank, Indian Bank, Bank of India and

the Punjab national bank have entered in to the field. These

institutions have successfully launched a variety of schemes to

meet the diverse needs of millions of small investors. The UTI is

the countries largest mutual fund company with over 25 million

investors, accounting for nearly 10% of countries stock market

capitalization.

In India mutual funds have been preferred as an avenue

for investment by the house hold savers only from 1990’s.

The Indian mutual funds industry has evolved over distinct

stages.

The growth of mutual fund industry can be divided into 4

phases:-

Phase 1 –(1964-1987)

Phase 2 –(1987-1992)

Phase 3 –(1992-1997)

Phase 4 –(beyond 1997)

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PHASE 1 –(1964-1987)

The mutual fund concept was introduced in India with the

setting up of UTI in 1963 which became operational in 1964

with the objective of mobilizing savings by sale of units and

investing them in corporate securities for maximizing yield and

capital appreciation.

It commenced with the launch of unit scheme and other

innovative schemes like income oriented and open ended

schemes.

UTI launched equity growth fund in 1986 which proved to

be an grand marketing success.

It launched India fund in1986 – the 1stIndian offshore fund.

UTI maintains its monopoly and growth till 1987.

PHASE 2 –(1987-1992)

This involved the entry of mutual fund companies

sponsored by nationalized banks and insurance companies.

In 1987 SBI mutual fund and Canada bank mutual fund

were set up. In 1988 UTI floated another offshore fund (Indian

growth fund) listed in New York stock exchange.

LIC, GIC, Nationalized banks, BOI, PNB, started its

operation in mutual fund by 1990.

In1989 1st regulatory guidelines wad issued by RBI for

mutual fund sponsored by banks and in1990 Govt. of India

issued guidelines for all mutual funds.

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PHASE 3 –(1992-1997)

The year 1993 marked a turning point in the history of

mutual funds in India.

The SEBI issued the mutual fund regulation in january

1993.

Foreign and private domestic players were allowed entry

in the mutual fund industry.

Kothari group of companies, in joint venture with pioneer

as US funds company set up the 1st private mutual fund known

as the Kothari-pioneer mutual fund in 1993.

PHASE 4 –(BEYOND 1997)

The flow of fund into mutual fund increased due to more

positive sentiment in the capital market, significant, tax benefit

and improvement in the quality of investor services etc.

The Indian mutual fund industry has stagnated at around

rupees 1 lakh crore assets since 2000-01.

In 2001-02 90 new schemes were launched,74 of which

were open-ended and 16 were close-ended. There were 53

income schemes.

If mutual fund ensure good returns, quick liquidity and

safety and create a good report with the investors, their future

will be very bright.

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STRUCTURE OF THE INDIAN MUTUAL

FUND INDUSTRY

The Indian mutual fund industry is dominated by the Unit

Trust of India which has a total corpus of Rs700bn collected

from more than 20 million investors. The UTI has many

funds/schemes in all categories i.e. equity, balanced, income

etc with some being open-ended and some being closed-

ended. The Unit Scheme 1964 commonly referred to as US 64,

which is a balanced fund, is the biggest scheme with a corpus

of about Rs200bn. UTI was floated by financial institutions and

is governed by a special act of Parliament. Most of its

investors believe that the UTI is government owned and

controlled, which, while legally incorrect, is true for all

practical purposes.

The second largest category of mutual funds is the ones

floated by nationalized banks. Can bank Asset Management

floated by Canara Bank and SBI Funds Management floated by

the State Bank of India are the largest of these. GIC AMC

floated by General Insurance Corporation and Jeevan Bima

Sahayog AMC floated by the LIC are some of the other

prominent ones. The aggregate corpus of funds managed by

this category of AMCs is about Rs150bn.

The third largest categories of mutual funds are the ones

floated by the private sector and by foreign asset management

companies. The largest of these are Prudential ICICI AMC and

Birla Sun Life AMC. The aggregate corpus of assets managed by

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this category of AMCs is in excess of Rs250bn.

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.

Guaranteed returns and their parent organizations had to

bail out these AMCs by 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

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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.

Changing Regulations

The recent ruling by the Securities and Exchange Board of

India, SEBI, on the removal of entry loads on mutual fund (MF)

investments has brought appreciation as well as criticism from

different corners. Last year SEBI had already done away with

entry loads in cases where the investors directly invested in

mutual funds without going through an agent or a distributor.

Changing regulations is not a new trend in the mutual

fund industry; we have had previous rulings which seemed

difficult and cumbersome to implement at the time but have

been adopted by all affected parties over time. In 2001, SEBI

made AMFI (Association of Mutual Funds in India) certification

compulsory to sell MFs which was accepted after initial protest

from distributors. Similarly, a PAN (Permanent Account

Number) was made compulsory for all MF investments in 2007

and KYC (Know Your Customer) compliance was made

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mandatory last year. In spite of all the objections, over time

everyone has accepted the changes, adapted to them and

moved on.

ASSOCIATION OF MUTUAL FUNDS IN

INDIA (AMFI)

With the increase in mutual fund players in India, a need

for mutual fund association in India was generated to function

as a non-profit organization. Association of Mutual Funds in

India (AMFI) was incorporated on 22nd August, 1995.

AMFI is an apex body of all Asset Management Companies

(AMC) which has been registered with SEBI. Till date all the

AMCs are that have launched mutual fund schemes are its

members. It functions under the supervision and guidelines of

its Board of Directors.

Association of Mutual Funds India has brought down the Indian

Mutual Fund Industry to a professional and healthy market with

ethical lines enhancing and maintaining standards. It follows

the principle of both protecting and promoting the interests of

mutual funds as well as their unit holders.

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THE OBJECTIVES OF ASSOCIATION OF

MUTUAL FUNDS IN INDIA

The AMFI works with 30 registered AMCs of the country. It

has certain defined objectives which juxtaposes the guidelines

of its Board of Directors. The objectives are as follows:

This mutual fund association of India maintains a high

professional and ethical standard in all areas of operation of the

industry. It also recommends and promotes the top class

business practices and code of conduct which is followed by

members and related people engaged in the activities of

mutual fund and asset management. The agencies who are by

any means connected or involved in the field of capital markets

and financial services also involved in this code of conduct of

the association.

AMFI interacts with SEBI and works according to SEBIs

guidelines in the mutual fund industry. AMFI does represent the

Government of India, the Reserve Bank of India and other

related bodies on matters relating to the Mutual Fund Industry.

It develops a team of well qualified and trained Agent

distributors. It implements a programme of training and

certification for all intermediaries and other engaged in the

mutual fund industry.

AMFI undertakes all India awareness programme for investors

in order to promote proper understanding of the concept and

working of mutual funds.

At last but not the least association of mutual fund of India also

disseminate informations on Mutual Fund Industry and

undertakes studies and research either directly or in

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association with other bodies.

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THE SPONSOR OF ASSOCIATION OF

MUTUAL FUNDS IN INDIA

Bank Sponsored

SBI Fund Management Ltd.

BOB Asset Management Co. Ltd.

Canbank Investment Management Services Ltd.

UTI Asset Management Company Pvt. Ltd.

Institutions

GIC Asset Management Co. Ltd.

Jeevan Bima Sahayog Asset Management Co. Ltd.

Private Sector

Indian:-

BenchMark Asset Management Co. Pvt. Ltd.

Cholamandalam Asset Management Co. Ltd.

Credit Capital Asset Management Co. Ltd.

Escorts Asset Management Ltd.

JM Financial Mutual Fund

Kotak Mahindra Asset Management Co. Ltd.

Reliance Capital Asset Management Ltd.

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Sahara Asset Management Co. Pvt. Ltd

Sundaram Asset Management Company Ltd.

Tata Asset Management Private Ltd.

Predominantly India Joint Ventures:

Birla Sun Life Asset Management Co. Ltd.

DSP Merrill Lynch Fund Managers Limited

HDFC Asset Management Company Ltd.

Predominantly Foreign Joint Ventures:

ABN AMRO Asset Management (I) Ltd.

Alliance Capital Asset Management (India) Pvt. Ltd.

Deutsche Asset Management (India) Pvt. Ltd.

Fidelity Fund Management Private Limited

Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.

HSBC Asset Management (India) Private Ltd.

ING Investment Management (India) Pvt. Ltd.

Morgan Stanley Investment Management Pvt. Ltd.

Principal Asset Management Co. Pvt. Ltd.

Prudential ICICI Asset Management Co. Ltd.

Standard Chartered Asset Mgmt Co. Pvt. Ltd.

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THE THREE BASIC FEATURES OF

MUTUAL FUNDS

a) All mutual funds charge expenses. Whether they be

marketing, management or brokerage fees, fund expenses

are generally passed back to the investors.

b) Investors exercise no control over what securities the fund

buys or sells.

c) The buying and selling of securities within the mutual fund

portfolio generates capital gains and losses which are

passed back to investors even if they have not sold any of

their mutual fund shares.

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HOW TO INVEST IN MUTUAL FUND

Step One -Identify your Investment needs

Your financial goals will vary, based on your age, lifestyle,

financial independence, family commitments, and level of

income and expenses among many other factors. Therefore,

the first step is to assess your needs. You can begin by defining

your investment objectives and needs which could be regular

income, buying a home or finance a wedding or educate your

children or a combination of all these needs, the quantum of

risk you are willing to take and your cash flow requirements.

Step Two -Choose the right Mutual Fund

The important thing is to choose the right mutual fund

scheme which suits your requirements. The offer document of

the scheme tells you its objectives and provides supplementary

details like the track record of other schemes managed by the

same Fund Manager. Some factors to evaluate before choosing

a particular Mutual Fund are the track record of the

performance of the fund over the last few years in relation to

the appropriate yardstick and similar funds in the same

category. Other factors could be the portfolio allocation, the

dividend yield and the degree of transparency as reflected in

the frequency and quality of their communications for selecting

the right scheme as per your specific requirements.

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Step Three -Select the ideal mix of Schemes

Investing in just one Mutual Fund scheme may not meet

all your investment needs. You may consider investing in a

combination of schemes to achieve your specific goals.

Step Four -Invest regularly

The best approach is to invest a fixed amount at specific

intervals, say every month. By investing a fixed sum each

month, you buy fewer units when the price is higher and more

units when the price is low, thus bringing down your average

cost per unit. This is called rupee cost averaging and is a

disciplined investment strategy followed by investors all over

the world. You can also avail the systematic investment plan

facility offered by many open end funds.

Step Five-Start early

It is desirable to start investing early and stick to a regular

investment plan. If you start now, you will make more than if

you wait and invest later. The power of compounding lets you

earn income on income and your money multiplies at a

compounded rate of return.

Step Six -The final step

All you need to do now is to click for online application

forms of various mutual fund schemes and start investing. You

may reap the rewards in the years to come. Mutual Funds are

suitable for every kind of investor -whether starting a career or

retiring, conservative or risk taking, growth oriented or income

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seeking.

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RIGHTS OF A MUTUAL FUND UNIT

HOLDER

A unit holder in a Mutual Fund scheme governed by the SEBI

(Mutual Funds) Regulations is entitled to:

1 Receive unit certificates or statements of accounts

confirming the title within 6 weeks from the date of

closure of the subscription or within 6 weeks from the date

of request for a unit certificate is received by the Mutual

Fund.

2 Receive information about the investment policies,

investment objectives, financial position and general

affairs of the scheme.

3 Receive dividend within 42 days of their declaration and

receive the redemption or repurchase proceeds within 10

days from the date of redemption or repurchase.

4 Vote in accordance with the Regulations to:

Approve or disapprove any change in the fundamental

investment policies of the scheme, which are likely to

modify the scheme or affect the interest of the unit

holder. The dissenting unit holder has a right to redeem

the investment.

Change the Asset Management Company.

Wind up the schemes.

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5. Inspect the documents of the Mutual Funds specified in

the scheme's offer document.

ADVANTAGES OF MUTUAL FUND

Professional Management

The idea behind a mutual fund is that individual investors

generally lack the time, the inclination or the skills to manage

their own investment. Thus mutual funds hire professional

managers to manage the investments for the benefit of their

investors in return for a management fee.

The organization that manages the investment is the

Asset Management Company (AMC). Employees of the AMC

who perform this role of managing investments are the fund

managers.

Diversification

The best mutual funds design their portfolios so individual

investments will react differently to the same economic

conditions. For example, economic conditions like a rise in

interest rates may cause certain securities in a diversified

portfolio to decrease in value. Other securities in the portfolio

will respond to the same economic conditions by increasing in

value. When a portfolio is balanced in this way, the value of the

overall portfolio should gradually increase over time, even if

some securities lose value.

Convenient Administration

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Investing in a Mutual Fund reduces paperwork and helps

you avoid many problems such as bad deliveries, delayed

payments and follow up with brokers and companies. Mutual

Funds save your time and make investing easy and convenient.

Low cost

Mutual fund expenses are often no more than 1.5 percent

of your investment. Expenses for Index Funds are less than

that, because index funds are not actively managed. Instead,

they automatically buy stock in companies that are listed on a

specific index.

Choice of Schemes

A mutual fund can, and typically does have several

schemes to cater to different investors preferences. The

individual could choose to hire a professional manager to

manage his money as per his investment and risk preferences.

Such personal treatment often referred to as Portfolio

Management Scheme (PMS).

Legal Framework

Since the investors are often not so well qualified to

invest, the mutual fund business is highly regulated. Broadly

the existing regulations are:

1 Pre-requisitions to start a mutual fund;

2 Permissible schemes and investments;

3 Control over marketing process;

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4 Checks and balances in the legal structure;

5 Valuation of securities;

6 Level of operational flexibility to the professional

investors.

Tax Benefits

Dividend income from mutual fund units will be exempt from

income tax with effect from July 1, 1999. Further, investors can

get rebate from tax under section 88 of Income Tax Act, 1961

by investing in Equity Linked Saving Schemes of mutual funds.

Further benefits are also available under section 54EA and

54EB with regard to relief from long term capital gains tax in

certain specified schemes.

Return Potential

Mutual funds allow you to allocate investments assets across

different fund categories to achieve a variety of risk/reward

objectives thereby reducing overall portfolio risk. In other

words, the right way to benefit from Mutual funds is to balance

the risk as well as the potential to earn.

Liquidity

Open-end schemes offer liquidity through on-going sale and re-

purchase facility. Thus, the investor does not have to worry

about finding a buyer for his investment –a risk normally

associated with direct investment in the securities market.

Transparency

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You get regular information on the value of your investment in

addition to disclosure on the specific investments made by your

scheme, the proportion invested in each class of assets and the

fund manager's investment strategy and outlook.

Flexibility

Through features such as regular investment plans, regular

withdrawal plans and dividend reinvestment plans, you can

systematically invest or withdraw funds according to your

needs and convenience.

Affordability

Investors individually may lack sufficient funds to invest in high-

grade stocks. A mutual fund because of its large corpus allows

even a small investor to take the benefit of its investment

strategy.

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LIMITATIONS OF MUTUAL FUNDS

No Guarantees

No investment is risk free. If the entire stock market

declines in value, the value of mutual fund shares will go down

as well, no matter how balanced the portfolio. Investors

encounter fewer risks when they invest in mutual funds than

when they buy and sell stocks on their own. However, anyone

who invests through a mutual fund runs the risk of losing

money.

Fees and commissions

All funds charge administrative fees to cover their day-to-

day expenses. Some funds also charge sales commissions or

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"loads" to compensate brokers, financial consultants, or

financial planners. Even if you don't use a broker or other

financial adviser, you will pay a sales commission if you buy

shares in a Load Fund.

Taxes

During a typical year, most actively managed mutual

funds sell anywhere from 20 to 70 percent of the securities in

their portfolios. If your fund makes a profit on its sales, you will

pay taxes on the income you receive, even if you reinvest the

money you made.

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Management risk

When you invest in a mutual fund, you depend on the

fund's manager to make the right decisions regarding the

fund's portfolio. If the manager does not perform as well as you

had hoped, you might not make as much money on your

investment as you expected. Of course, if you invest in Index

Funds, you forego management risk, because these funds do

not employ managers.

Dilution

It's possible to have too much diversification. Because

funds have small holdings in so many different companies, high

returns from a few investments often don't make much

difference on the overall return. Dilution is also the result of a

successful fund getting too big. When money pours into funds

that have had strong success, the manager often has trouble

finding a good investment for all the new money.

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TYPES OF MUTUAL FUNDS

Mutual fund schemes may be classified on the basis of its

structure and its investment objective.

BY STRUCTURE:-

Open-ended Funds

An open-end fund is one that is available for subscription

all through the year. These do not have a fixed maturity.

Investors can conveniently buy and sell units at Net Asset Value

("NAV") related prices. The key feature of open-end schemes is

liquidity.

Top five open-end schemes are:

Sundaram BNP Paribas Money Fund Super

Institutional Growth

15.0772

Templeton India Liquid Plus-Growth Plan 13.0721

HDFC Cash Management Fund - Savings Plan-

Growth Option

14.8842

SBI MICF CASH PLAN 16.0392

Fidelity Multi Manager Cash Fund-Growth Option 10.3436

Closed-ended Funds

A closed-end fund has a stipulated maturity period which

generally ranging from 3 to 15 years. The fund is open for

subscription only during a specified period. Investors can invest

in the scheme at the time of the initial public issue and

thereafter they can buy or sell the units of the scheme on the

stock exchanges where they are listed. In order to provide an

exit route to the investors, some close-ended funds give an

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option of selling back the units to the Mutual Fund through

periodic repurchase at NAV related prices. SEBI Regulations

stipulate that at least one of the two exit routes is provided to

the investor.

The top five close-ended funds are:

Prudential ICICI Fusion Fund-FII - Growth 9.05

Tata Equity Management Fund - Growth 10.2370

SBI Debt Fund Series-60 Days-1-Growth 10.0927

Sundaram BNP Paribas Fixed Term Plan

Series VII Growth

10.0737

Reliance Fixed Maturity Fund-Series-II-

Annual Plan Series-1

10.6576

Growth Option

Interval Funds

Interval funds combine the features of open-ended and close-

ended schemes. They are open for sale or redemption during

pre-determined intervals at NAV related prices.

BY INVESTMENT OBJECTIVE:-

Growth Funds

The aim of growth funds is to provide capital appreciation over

the medium to long-term. Such schemes normally invest a

majority of their corpus in equities. It has been proven that

returns from stocks, have outperformed most other kind of

investments held over the long term. Growth schemes are ideal

for investors having a long-term outlook seeking growth over a

period of time.

The top three worth considering funds are:

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Reliance Diversified Power Sector Fund-

Growth-Growth

25.0016

Sundaram BNP Paribas India Leadership

Fund-Growth

23.1767

Magnum Equity Fund 25.84

Income Funds

The aim of income funds is to provide regular and steady

income to investors. Such schemes generally invest in fixed

income securities such as bonds, corporate debentures and

Government securities. Income Funds are ideal for capital

stability and regular income.

The top three income funds are:

Reliance Income Fund-Retail Plan - Growth

Plan Growth Option

22.321

Sundaram BNP Paribas Bond Saver-Growth 22.0890

SBI Magnum Income Fund-Growth 19.1812

Balanced Funds

The aim of balanced funds is to provide both growth and

regular income. Such schemes periodically distribute a part of

their earning and invest both in equities and fixed income

securities in the proportion indicated in their offer documents.

In a rising stock market, the NAV of these schemes may not

normally keep pace, or fall equally when the market falls. These

are ideal for investors looking for a combination of income and

moderate growth.

The top three balanced funds are:

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SBI Magnum Balanced Fund - Growth 29.04

HDFC Balanced Fund-Growth Plan 27.061

FT India Balanced Fund-Growth Plan 26.7482

Money Market Funds

The aim of money market funds is to provide easy

liquidity, preservation of capital and moderate income. These

schemes generally invest in safer short-term instruments such

as treasury bills, certificates of deposit, commercial paper and

inter-bank call money. Returns on these schemes may fluctuate

depending upon the interest rates prevailing in the market.

These are ideal for Corporate and individual investors as a

means to park their surplus funds for short periods.

Load Funds

A Load Fund is one that charges a commission for entry or

exit. That is, each time you buy or sell units in the fund, a

commission will be payable. Typically entry and exit loads

range from 1% to 2%. It could be worth paying the load, if the

fund has a good performance history.

No-Load Funds

A No-Load Fund is one that does not charge a commission

for entry or exit. That is, no commission is payable on purchase

or sale of units in the fund. The advantage of a no load fund is

that the entire corpus is put to work.

OTHER SCHEME:-

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Tax Saving Schemes

These schemes offer tax rebates to the investors under

specific provisions of the Indian Income Tax laws as the

Government offers tax incentives for investment in specified

avenues. Investments made in Equity Linked Savings Schemes

(ELSS) and Pension Schemes are allowed as deduction u/s 88 of

the Income Tax Act, 1961. The Act also provides opportunities

to investors to save capital gains u/s 54EA and 54EB by

investing in Mutual Funds.

Special Schemes

Industry Specific Schemes

Industry Specific Schemes invest only in the industries

specified in the offer document. The investment of these funds

is limited to specific industries like InfoTech, FMCG, and

Pharmaceuticals etc.

Index Schemes

Index Funds attempt to replicate the performance of a

particular index such as the BSE Sensex or the NSE 50.

Sectoral Schemes

Sectoral Funds are those, which invest exclusively in a specified

industry or a group of industries or various segments such as

'A' Group shares or initial public offerings.

Various sectoral schemes are:

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Pharma sector schemes

FMCG sector schemes

Service sector schemes

Infrastructural sector schemes

Bank sector schemes

Auto sector schemes, etc,

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PLANS OF MUTUAL FUNDS

There are two types of plans. Those are:

1) Growth Plan

2) Dividend plan

Growth plan

A mutual fund whose aim is to achieve capital

appreciation by investing in growth stocks. They focus on

companies that are experiencing significant earnings or

revenue growth, rather than companies that pay out dividends.

The hope is that these rapidly growing companies will continue

to increase in value, thereby allowing the fund to reap the

benefits of large capital gains. In general, growth funds are

more volatile than other types of funds, rising more than other

funds in bull markets and falling more in bear markets.

Some growth plan schemes are:

Franklin India Prima Fund-Growth 161.99

Reliance Vision Fund-GROWTH PLAN-

Growth Option

140.74

HDFC Equity Fund-Growth Plan 116.694

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Dividend Plan

Again dividend plan is sub divided into two parts:

Dividend reinvestment plan (DRIP)

An investment plan offered by some corporations enabling

shareholders to automatically reinvest cash dividends and

capital gains distributions, thereby accumulating more stock

without paying brokerage commissions. Many DRIPs also allow

the investment of additional cash from the shareholder, known

as an optional cash purchase. Unlike with a Direct Stock

Purchase Plan, with a DRIP the investor must purchase the first

share in the company through a brokerage. After that, the

company will take whatever dividends it would normally send

as a check and instead it will reinvest them to purchase more

shares in the company for you, all without charging a

commission. The only drawback is that the investor has no

control over when his/her money from the dividends is used to

purchase new stock in the company, which means he/she might

be buying new shares at suboptimal times. Also called Dividend

Reinvestment Programs.

Some dividend reinvestment schemes are:

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Dividend payout plan

The ex-dividend date was created to allow all pending

transactions to be completed before the record date. If an

investor does not own the stock before the ex-dividend date,

he or she will be ineligible for the dividend payout. Further, for

all pending transactions that have not been completed by the

ex-dividend date, the exchanges automatically reduce the price

of the stock by the amount of the dividend. This is done

because a dividend payout automatically reduces the value of

the company (it comes from the company's cash reserves ), and

the investor would have to absorb that reduction in value

(because neither the buyer nor the seller are eligible for the

dividend).

Some dividend payout schemes are:

HDFC Equity Fund-Dividend Plan 34.841

Prudential ICICI Tax Plan-Dividend 24.05

Sundaram BNP Paribas S.M.I.L.E.Fund-

Dividend

12.8372

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Information

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 3, 2000.

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. 25.161 crore. 

The present equity shareholding pattern of the AMC is as follows :

Particulars % of the paid up equity capital

Housing Development Finance Corporation Limited

60

Standard Life Investments Limited 40

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 NameZurich India Equity Fund HDFC Equity Fund

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Zurich India Prudence Fund HDFC Prudence FundZurich India Capital Builder Fund

HDFC Capital Builder Fund

Zurich India TaxSaver Fund HDFC TaxSaverZurich India Top 200 Fund HDFC Top 200 FundZurich India High Interest Fund HDFC High Interest FundZurich India Liquidity Fund HDFC Cash Management

FundZurich India Sovereign Gilt Fund

HDFC Sovereign Gilt Fund*

PRODUCTS

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Equity / Growth Fund

Invest primarily in equity and equity related instruments.

Children's Gift Fund

Children's Gift Fund

Fixed Maturity Plan

Invest primarily in Debt / Money Market Instruments and Government Securities...

Liquid Funds

Provide high level of liquidity by investing in money market and debt instruments.

Debt/ Income Fund

Invest in money market and debt instruments and provide optimum balance of yield, ...

Quarterly Interval Fund

The primary objective of the Scheme is to generate regular income through investment..

AWARDS ACCOLADES

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ICRA Mutual Fund Awards 2011

HDFC Mutual Fund was awarded the 'Star Fund House of

the Year' in the 'Equity' Category (from amongst 13 fund

houses) for the one year period ending December 31, 2010 at

ICRA Mutual Fund Awards 2011.

'Star Fund House of the Year Award' indicates top overall

performance within the eligible fund houses.

Past Performance is no guarantee of future results.

Please refer below the Award / Ranking Methodology

and Disclaimer for the Awards/ Rankings.

ICRA Gold Award for 'Best Performance' - Seven Star Fund

Ranking.

HDFC Prudence Fund has been ranked a "Seven Star

Fund" and has been awarded Gold Award for 'Best

Performance' in the category of Open Ended Balanced for one

year period ending December 31, 2010 (from amongst 28

schemes) at ICRA Mutual Fund Awards 2011.

HDFC Capital Builder Fund has been ranked a "Seven Star

Fund" and has been awarded Gold Award for 'Best

Performance' in the category of Open Ended Diversified

Equity - Aggressive for one year period ending December 31,

2010 (from amongst 83 schemes) at ICRA Mutual Fund

Awards 2011.

HDFC Equity Fund has been ranked a "Seven Star Fund"

and has been awarded Gold Award for 'Best Performance'

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in the category of Open Ended Diversified Equity - Defensive for

one year period ending December 31, 2010 (from amongst

118 schemes) at ICRA Mutual Fund Awards 2011.

HDFC TaxSaver has been ranked a "Seven Star Fund" and

has been awarded Gold Award for 'Best Performance' in

the category of Open Ended Equity Linked Savings Schemes

(ELSS) for one year period ending December 31, 2010 (from

amongst 34 schemes) at ICRA Mutual Fund Awards 2011.

HDFC MF Monthly Income Plan - Long Term Plan has been

ranked a "Seven Star Fund" and has been awarded Gold

Award for 'Best Performance' in the category of Open

Ended Marginal Equity for one year period ending December

31, 2010 (from amongst 46 schemes) at ICRA Mutual Fund

Awards 2011.

HDFC Prudence Fund has been ranked a "Seven Star

Fund" and has been awarded Gold Award for 'Best

Performance' in the category of Open Ended Balanced for

three year period ending December 31, 2010 (from amongst

27 schemes) at ICRA Mutual Fund Awards 2011.

HDFC Short Term Plan has been ranked a "Seven Star

Fund" and has been awarded Gold Award for 'Best

Performance' in the category of Open Ended Debt – Short

Term for three year period ending December 31, 2010 (from

amongst 18 schemes) at ICRA Mutual Fund Awards 2011.

HDFC Equity Fund has been ranked a "Seven Star Fund"

and has been awarded Gold Award for 'Best Performance' in

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the category of Open Ended Diversified Equity - Defensive for

three year period ending December 31, 2010 (from amongst

95 schemes) at ICRA Mutual Fund Awards 2011.

Past Performance is no guarantee of future results.

Please refer below the Award / Ranking Methodology

and Disclaimer for the Awards / Rankings.

'Seven Star Fund' Ranking: Best Performance amongst 5-Star

Funds in the respective category.

'ICRA 7-Star Gold Award': The best performing fund amongst

the 5-Stars is ranked as a 7-Star Fund provided it's fund size is

greater than the average of the respective category or Rs. 100

crores, whichever is lower.

ICRA Five Star Fund Ranking

HDFC Children's Gift Fund - Investment Plan has been

ranked a "Five Star Fund" indicating performance among top

4.6% in the category of Open Ended Balanced for one year

period ending December 31, 2010 (from amongst 28 schemes)

at ICRA Mutual Fund Awards 2011.

HDFC Balanced Fund has been ranked a "Five Star Fund"

indicating performance among top 4.6% in the category of

Open Ended Balanced for one year period ending December

31, 2010 (from amongst 28 schemes) at ICRA Mutual Fund

Awards 2011.

HDFC Growth Fund has been ranked a "Five Star Fund"

indicating performance among top 4.6% in the category of

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Open Ended Diversified Equity - Defensive for one year period

ending December 31, 2010 (from amongst 118 schemes) at

ICRA Mutual Fund Awards 2011.

HDFC Long Term Advantage Fund has been ranked a "Five

Star Fund" indicating performance among top 4.6% in the

category of Open Ended Equity Linked Savings Schemes (ELSS)

for one year period ending December 31, 2010 (from amongst

34 schemes) at ICRA Mutual Fund Awards 2011.

HDFC Cash Management Fund-Treasury Advantage Plan

- Retail Option has been ranked a "Five Star Fund"

indicating performance among top 4.6% in the category of

Open Ended Liquid for one year period ending December 31,

2010 (from amongst 54 schemes) at ICRA Mutual Fund

Awards 2011.

HDFC Children's Gift Fund - Savings Plan has been ranked

a "Five Star Fund" indicating performance among top 4.6% in

the category of Open Ended Marginal Equity for one year

period ending December 31, 2010 (from amongst 46 schemes)

at ICRA Mutual Fund Awards 2011.

HDFC Multiple Yield Fund - Plan 2005 has been ranked a

"Five Star Fund" indicating performance among top 4.6% in

the category of Open Ended Marginal Equity for one year

period ending December 31, 2010 (from amongst 46 schemes)

at ICRA Mutual Fund Awards 2011.

HDFC Balanced Fund has been ranked a "Five Star Fund"

indicating performance among top 4.6% in the category of

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Open Ended Balanced for three year period ending December

31, 2010 (from amongst 27 schemes) at ICRA Mutual Fund

Awards 2011.

HDFC Multiple Yield Fund - Plan 2005 has been ranked a

"Five Star Fund" indicating performance among top 4.6% in

the category of Open Ended Marginal Equity for three year

period ending December 31, 2010 (from amongst 45schemes)

at ICRA Mutual Fund Awards 2011.

HDFC TaxSaver has been ranked a "Five Star Fund"

indicating performance among top 4.6% in the category of

Open Ended Equity Linked Savings Schemes (ELSS) for three

year period ending December 31, 2010 (from amongst 23

schemes) at ICRA Mutual Fund Awards 2011.

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ICICI PRUDENTIAL ASSET MANAGEMENT

COMPANY LIMITED (AMC):-

ICICI Prudential Asset Management Company enjoys the

strong parentage of Prudential plc, one of UK's largest players

in the insurance & fund management sectors and ICICI Bank, a

well-known and trusted name in financial services in India. ICICI

Prudential Asset Management Company, in a span of just over

eight years, has forged a position of pre-eminence in

the Indian Mutual Fund industry as one of the largest asset

management companies in the country with average assets

under management of Rs. 69,754.78 Crore (as of sept 30,

2010). The Company manages a comprehensive range of

schemes to meet the varying investment needs of its

investors spread across 230 cities in the country.

Key indicators

  At inception - May 1998 As on September 30, 2010

Average Assets Under

ManagementRs. 160 Crore Rs. 69,754.78 Crore

Number of Funds Managed 2 40

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SPONSORS

Securities and Exchange Board of India, vide its

letter no. MFD/PM/567/02 dated June 4, 2002, has

accorded its approval in recognizing ICICI Bank Ltd.

as a co-sponsor consequent to the merger of ICICI

Ltd. with ICICI Bank Ltd.

ICICI Bank is India's second-largest bank with total

assets of Rs. 3,997.95 billion (US$ 100 billion) at

March 31, 2008 and profit after tax of Rs. 41.58

billion for the year ended March 31, 2008. ICICI Bank

is second amongst all the companies listed on the

Indian stock exchanges in terms of free float market

capitalization Free float holding excludes all

promoter holdings, strategic investments and

cross holdings among public sector entities. The

Bank has a network of about 1,308 branches and

3,950 ATMs in India and presence in 18 countries.

ICICI Bank offers a wide range of banking products

and financial services to corporate and retail

customers through a variety of delivery channels

and through its specialised subsidiaries and affiliates

in the areas of investment banking, life and non-life

insurance, venture capital and asset management.

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The Bank currently has subsidiaries in the United

Kingdom, Russia and Canada, branches in Unites

States, Singapore, Bahrain, Hong Kong, Sri Lanka,

Qatar and Dubai International Finance Centre and

representative offices in United Arab Emirates,

China, South Africa, Bangladesh, Thailand, Malaysia

and Indonesia. Our UK subsidiary has established

branches in Belgium and Germany. ICICI Bank's

equity shares are listed in India on Bombay Stock

Exchange and the National Stock Exchange of India

Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange

(NYSE). (Source: Overview at www.icicibank.com).

Headquartered in London, Prudential plc and its

affiliated companies together constitute one of the

world's leading financial services groups. Prudential

provides insurance and financial services in a

number of markets around the world, including in

Asia, the US, the UK, Europe and the Middle East.

Founded in 1848, the company has £249 billion in

funds under management (as of 31 December 2008)

and more than 21 million customers worldwide.

Prudential has been writing life insurance in the

United Kingdom for 160 years and has had the

largest long-term fund in the United Kingdom, for

over a century. In the United Kingdom, Prudential is

a leading retirement savings and income solutions

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and life assurance provider. M&G is Prudential's

fund management business in the United Kingdom

and Europe, with almost £140 billion in funds under

management (as of 31 December 2008). In the

United States, Jackson National Life, which we

acquired in 1986, is one of the largest life insurance

companies providing retirement savings and income

solutions.

In Asia, Prudential is the leading Europe-based life

insurer in terms of market coverage and number of

top three ranking positions. It is also one of the

largest and most successful fund managers in Asia

with more top five market rankings than any other

regional player. Today, Prudential has life insurance

and fund management operations spanning 13

diverse markets in Asia.

Prudential plc is incorporated and with its principal

place of business in the United Kingdom. It is not

affiliated in any manner with Prudential Financial,

Inc., a company whose principal place of business is

in the United States. 

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COMPARISION OF MUTUAL FUNDS

COMPARISON OF MUTUAL FUND SCHEMES OF

HDFC MUTUAL FUNDAND PRUDENTIAL ICICI

MUTUAL FUND :-

1. Comparison between HDFC Top 200 Fund and ICICI

Prudential Focused Blue-chip Equity Fund :-

HDFC Top 200 Fund ICICI Prudential Focused Bluechip

Equity Fund

Objective To generate longterm capitalappreciation from aportfolio of equityand equity-linkedinstruments primarilydrawn from thecompanies in BSE200 index.

To generate longterm capitalappreciation from aportfolio of equityand equity-linkedinstruments primarilydrawn from thecompanies in BSE200 index.

Fund HDFC Mutual Fund Prudential ICICI Mutual Fund

AMC HDFC Asset Management Company Ltd.

Prudential ICICI Asset Management Co. Ltd.

Category Equity Equity

Type Of Scheme

Open Ended Open Ended

Inception Date 11/10/1996 23/05/2008

Net Assets (Rs.Crores)

Rs. 9,481.82 crores as on 28/02/2011

Rs. 1,658.17 crores as on 31/12/2010

Minimum Investment (Rupees)

5000 5000

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PERFORMANCE ANALYSIS DIAGRAM :-

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INTERPRETATION :-

Regarding Benchmark Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Top 200 fund is

-5.34% where ICICI Pru Focused Bluechip Equity Fund is -1.4%.

The performance in last 1 year of HDFC Top 200 fund is

5.48% where ICICI Pru Focused Bluechip Equity Fund is 8.3%.

The performance since inception of HDFC top 200 fund is

14.45% where ICICI Pru Focused Bluechip Equity Fund is 2.75%.

Regarding Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Top 200 fund is

-3.91% where ICICI Pru Focused Bluechip Equity Fund is -0.13%.

The performance in last 1 year of HDFC Top 200 fund is

13.74% where ICICI Pru Focused Bluechip Equity Fund is

15.93%.

The performance since inception of HDFC top 200 fund is

24.74% where ICICI Pru Focused Bluechip Equity Fund is

16.92%.

FINDINGS :-

According to study ICICI Pru Focused Bluechip Equity Fund

is a better fund for investment as comparison to HDFC Top 200

fund.

PORTFOLIO CHART:-

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INTERPRETATION :-

HDFC Top 200 fund invest their 96% in equity and equity

related holdings, 3.65% in other cash, cash equivalent and net

current assets.

Where ICICI Pru Focused Blue chip equity fund invest their

97% in equity and equity related holdings and 3% in other

current assets.

2. Comparison between HDFC Equity Fund-Dividend

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and ICICI Pru Dynamic Fund-Dividend :-

HDFC Equity Fund-

Dividend

Prudential ICICI

Dynamic Fund-

Dividend

Objective Objective: These

funds diversify their

portfolio evenly

across stocks and

industry sectors.

Objective: These

funds diversify their

portfolio evenly

across stocks and

industry sectors.

Fund HDFC Mutual Fund Prudential ICICI

Mutual Fund

AMC HDFC Asset

Management

Company Ltd.

Prudential ICICI

Asset Management

Co. Ltd.

Category Equity - Diversified Equity - Diversified

Type Of Scheme Open Ended Open Ended

Inception Date 01/01/1995 31/10/2002

Net Assets

(Rs.Crores)

Rs.8271.94 crore as

on 28/02/2011

Rs. 2,785.39

croresas on

31/12/2010

Minimum

Investment(Rupe

es)

5000 5000

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PERFORMANCE ANALYSIS DIAGRAM:

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INTERPRETATION :-

Regarding Benchmark Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Equity Fund is -

6.67% where ICICI Pru Dynamic Fund is -1.4%.

The performance in last 1 year of HDFC Equity Fund is 2.88%

where ICICI Pru Dynamic Fund is 8.3%.

The performance in last 3 years of HDFC Equity Fund is -1.2%

where ICICI Pru Dynamic Fund is 0.3%.

The performance in last 5 years of HDFC Equity Fund is 9.81%

where ICICI Pru Dynamic Fund is 11.64%.

The performance since inception of HDFC Equity Fund is 9.54%

where ICICI Pru Dynamic Fund is 22.98%.

Regarding Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Equity Fund is -

4.74% where ICICI Pru Dynamic Fund is 0.74%.

The performance in last 1 year of HDFC Equity Fund is 16.87%

where ICICI Pru Dynamic Fund is 13.41%.

The performance in last 3 years of HDFC Equity Fund is 11.54%

where ICICI Pru Dynamic Fund is 8.74%.

The performance in last 5 years of HDFC Equity Fund is 17.45%

where ICICI Pru Dynamic Fund is 17.25%.

The performance since inception of HDFC Equity Fund is

22.36% where ICICI Pru Dynamic Fund is 32.21%.

FINDINGS :

According to study ICICI Pru Dynamic Equity Fund is better

fund for investment as comparison to HDFC Equity Fund.

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PORTFOLIO CHART:-

INTERPRETATION :-

HDFC Equity Fund invest their 50.58% in equity and equity

related holdings, 0.32% in cash margin, 3.30% in other cash

and cash equivalent and 45.80% in top ten equity holdings.

Where ICICI Pru Dynamic Equity Fund invest their 37% in

top ten equity holdings, 56% in other equity holdings and 7% in

other current assets.

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3. Comparison between HDFC Equity Fund-Growth and

ICICI Prudential Growth Plan :-

HDFC Equity Fund-

Growth

ICICI Prudential

Growth plan

Objective Objective: These

funds diversify their

portfolio evenly

across stocks and

industry sectors.

Objective: These

funds diversify their

portfolio evenly

across stocks and

industry sectors.

Fund HDFC Mutual Fund Prudential ICICI

Mutual Fund

AMC HDFC Asset

Management

Company Ltd.

Prudential ICICI

Asset Management

Co. Ltd.

Category Equity - Diversified Equity - Diversified

Type Of Scheme Open Ended Open Ended

Inception Date 11/09/2000 09/07/1998

Net Assets

(Rs.Crores)

Rs.1216.12 crores as

on 28/02/2011

Rs. 3 83.62

croresas on

31/12/2010

Minimum

Investment(Rupe

es)

5000 5000

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PERFORMANCE ANALYSIS DIAGRAM:-

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INTERPRETATION :-

Regarding Benchmark Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Growth Fund is -

0.97% where ICICI Pru Growth Plan is -1.4%.

The performance in last 1 year of HDFC Growth Fund is 8.44%

where ICICI Pru Growth Plan is 8.3%.

The performance in last 3 years of HDFC Growth Fund is 0.0%

where ICICI Pru Growth Plan is 0.3%.

The performance in last 5 years of HDFC Growth Fund is

11.43% where ICICI Pru Growth Plan is 11.64%.

The performance since inception of HDFC Growth Fund is

13.58% where ICICI Pru Growth Plan is 14.51%.

Regarding Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Growth Fund is -

5.48% where ICICI Pru Growth Plan is 0.42%.

The performance in last 1 year of HDFC Growth Fund is 15.98%

where ICICI Pru Growth Plan is 10.03%.

The performance in last 3 years of HDFC Growth Fund is 5.95%

where ICICI Pru Growth Plan is 3.8%.

The performance in last 5 years of HDFC Growth Fund is 17.4%

where ICICI Pru Growth Plan is 12.39%.

The performance since inception of HDFC Growth Fund is

22.17% where ICICI Pru Growth Plan is 22.39%.

FINDINGS :

According to study HDFC Growth Fund is better fund for

investment as comparison to ICICI Pru Growth Plan.

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PORTFOLIO CHART:-

Interpretation :-

HDFC Growth Plan invest their 98% in equity and equity

holdings and 2% in cash, cash equivalent and net current

assets.

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Where ICICI Pru Growth Plan invest their 23% in equity

and equity related holdings and 77% in other current assets.

4. Comparison between HDFC Tax Saver and ICICI

Prudential Tax Saver:-

HDFC

TaxSaver

ICICI Prudential

Tax Plan

Objective To achieve long term

growth of

capital.

To achieve long

term growth of

capital.

Fund HDFC Mutual Fund Prudential ICICI

Mutual Fund

AMC HDFC Asset

Management

Company Ltd.

Prudential ICICI

Asset Management

Co. Ltd.

Category Equity Equity

Type Of Scheme Open Ended Open Ended

Inception Date 31/03/1996 19/08/1999

Net Assets

(Rs.Crores)

Rs.2767.11crore as

on 28/02/2011

Rs. 1,320.28

croresas on

31/12/2010

Minimum

Investment(Rupe

es)

500 500

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PERFORMANCE ANALYSIS DIAGRAM:-

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INTERPRETATION :-

Regarding Benchmark Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Tax Saver is -6.67%

where ICICI Pru Tax Plan is -1.4%.

The performance in last 1 year of HDFC Tax Saver is 2.88%

where ICICI Pru Tax Plan is 8.3%.

The performance in last 3 years of HDFC Tax Saver is -1.2%

where ICICI Pru Tax Plan is 0.3%.

The performance in last 5 years of HDFC Tax Saver is 9.81%

where ICICI Pru Tax Plan is 11.64%.

The performance since inception of HDFC Tax Saver is 12.84%

where ICICI Pru Tax Plan is 12.68%.

Regarding Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Tax Saver is -5.86%

where ICICI Pru Tax Plan is -3.38%.

The performance in last 1 year of HDFC Tax Saver is 12.53%

where ICICI Pru Tax Plan is 9.99%.

The performance in last 3 years of HDFC Tax Saver is 8.05%

where ICICI Pru Tax Plan is 7.8%.

The performance in last 5 years of HDFC Tax Saver is 13.38%

where ICICI Pru Tax Plan is 11.19%.

The performance since inception of HDFC Tax Saver is 30.81%

where ICICI Pru Tax Plan is 25.11%.

FINDINGS :

According to study ICICI Pru Tax Plan is better fund for

investment as comparison to HDFC Tax Saver.

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PORTFOLIO CHART:-

Interpretation :-

HDFC Tax Saver invest their 17% in top ten holdings, 20%

in other equity holdings and 63% in current assets.

Where ICICI Prudential Tax Plan invest their 16% in top ten

holdings, 24% in other equity holdings and 60% in current

assets.

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5. Comparison Between HDFC Balanced Fund and

Prudential ICICI Balanced Plan:-

HDFC Balanced Fund Prudential ICICI Balanced Plan

Objective To generate capitalappreciation along withcurrent income from acombined portfolio of equity& equity-related and debt &money market instruments.

To generate capitalappreciation along withcurrent income from acombined portfolio of equity& equity-related and debt &money market instruments.

Fund HDFC Mutual Fund Prudential ICICI Mutual Fund

AMC HDFC Asset Management Company Ltd.

Prudential ICICI Asset Management Co. Ltd.

Category Hybrid (Equity) Hybrid (Equity)

Type Of Scheme Open Ended Open Ended

Inception Date 11/09/2000 03/11/1999

Net Assets (Rs.Crores)

Rs.238.0279 crores as on 28/02/2011

Rs. 274.21 crores as on 31/12/2010

Minimum Investment(Rupees)

5000 5000

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PERFORMANCE ANALYSIS DIAGRAM:-

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INTERPRETATION :-

Regarding Benchmark Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Balanced Fund is

0.02% where ICICI Balanced Fund is 0.02%.

The performance in last 1 year of HDFC Balanced Fund is

7.49% where ICICI Balanced Fund is 7.49%.

The performance in last 3 years of HDFC Balanced Fund is

3.51% where ICICI Balanced Fund is 3.51%.

The performance in last 5 years of HDFC Balanced Fund is

10.56% where ICICI Balanced Fund is 10.56%.

The performance since inception of HDFC Balanced Fund is

0.0% where ICICI Balanced Fund is 0.0%.

Regarding Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Balanced Fund is -

1.63% where ICICI Balanced Fund is 0.28%.

The performance in last 1 year of HDFC Balanced Fund is

15.3% where ICICI Balanced Fund is 10.78%.

The performance in last 3 years of HDFC Balanced Fund is

11.6% where ICICI Balanced Fund is 1.31%.

The performance in last 5 years of HDFC Balanced Fund is

13.96% where ICICI Balanced Fund is 9%.

The performance since inception of HDFC Balanced Fund is

17.06% where ICICI Balanced Fund is 13.9%.

FINDINGS :

According to study ICICI Balanced Fund is better for investment

as comparison to HDFC Balanced Fund.

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PORTFOLIO CHART:-

Interpretation :-

HDFC Balanced Fund invest their 14% in top 10 equity

holdings, 15% in other equity holdings and 71% in Govt.

securities, money market instrument and other credit

exposure.

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Where ICICI Pru Balanced Fund invest their 68% in equity

holdings, 31% in debt. holdings and -1% in other current assets.

6. Comparison Between HDFC Core & Satellite and

Prudential ICICI Emerging Star Fund:-

HDFC Core &

Satellite Fund

Prudential ICICI

Emerging Star Fund

Objective To generate capital

appreciation through

equity investment in

companies whose

shares are quoting

at prices below their

true value.

To generate capital

Appreciation through

equity investment in

companies whose

shares are quoting at

prices below their

true value.

Fund HDFC Mutual Fund Prudential ICICI

Mutual Fund

AMC HDFC Asset

Management

Company Ltd.

ICICI Investment

Management

Company Ltd.

Category Equity - Diversified Equity - Diversified

Scheme Plan Dividend Dividend

Type Of Scheme Open Ended Open Ended

Inception Date 17/09/2004 28/10/2004

Net Assets

(Rs.Crores)

394.80 as on

28/02/2011

414.74 as on

31/12/2011

Minimum

Investment(Rupees

5000 5000

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)

PERFORMANCE ANALYSIS DIAGRAM:-

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INTERPRETATION :-

The performance in last 1 year of HDFC Core and Satellite

Fund is 5.48% where ICICI Emerging S.T.A.R. Fund is 3.44%.

The performance in last 3 years of HDFC Core and Satellite

Fund is -0.82% where ICICI Emerging S.T.A.R. Fund is 2.66%.

The performance in last 5 years of HDFC Core and Satellite

Fund is 11.03% where ICICI Emerging S.T.A.R. Fund is 11.85%.

The performance since inception of HDFC Core and Satellite

Fund is 18.66% where ICICI Emerging S.T.A.R. Fund is 18.9%.

Regarding Benchmark Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Core and Satellite

Fund is -5.34% where ICICI Emerging S.T.A.R. Fund is -11.64%.

Regarding Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Core and Satellite

Fund is -6.24% where ICICI Emerging S.T.A.R. Fund is -15.83%.

The performance in last 1 year of HDFC Core and Satellite Fund

is 12.2% where ICICI Emerging S.T.A.R. Fund is -0.93%.

The performance in last 3 years of HDFC Core and Satellite

Fund is 6.12% where ICICI Emerging S.T.A.R. Fund is -7.04%.

The performance in last 5 years of HDFC Core and Satellite

Fund is 12.3% where ICICI Emerging S.T.A.R. Fund is 6.16%.

The performance since inception of HDFC Core and Satellite

Fund is 22.89% where ICICI Emerging S.T.A.R. Fund is 18.75%.

FINDINGS :

According to study HDFC Core and Satellite Fund is better for

investment as comparison to ICICI Emerging S.T.A.R. Fund.

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PORTFOLIO CHART:-

INTERPRETATION :-

HDFC Core and Satellite Fund invest their 13% in top ten

holdings, 85% in equity and equity related holdings and 2% in

Cash, cash equivalent and net current assets.

Where ICICI Pru Emerging S.T.A.R Fund invest their 16% in

top ten holdings, 25% in other equity related holdings and 59%

in other current assets.

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7. Comparison between HDFC Index Nifty Plan and

Prudential ICICI Index Fund:-

HDFC Index Nifty

Plan

Prudential ICICI

Index Fund

Objective To generate returns

that are

commensurate with

the performance of

the Nifty, subject to

tracking errors.

To generate returns

that are

commensurate with

the performance of

the Nifty, subject to

tracking errors.

Fund HDFC Mutual Fund Prudential ICICI

Mutual Fund

AMC HDFC Asset

Management

Company Ltd.

Prudential ICICI

Asset Management

Co. Ltd.

Category Equity - Index Fund Equity - Index Fund

Scheme Plan Growth Growth

Type Of Scheme Open Ended Open Ended

Inception Date 17/7/2002 26/02/2002

Net Assets

(Rs.Crores)

55.42 as on

28/02/2011

88.77 as on

31/12/2010

Minimum

Investment(Rupe

es)

5000 5000

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PERFORMANCE ANALYSIS DIAGRAM:-

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INTERPRETATION :-

Regarding Benchmark Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Nifty Index Fund is -

1.09% where ICICI Nifty Index Plan is -1.4%.

The performance in last 1 year of HDFC Nifty Index Fund is

9.46% where ICICI Nifty Index Plan is 9.18%.

The performance in last 3 years of HDFC Nifty Index Fund is

1.35% where ICICI Nifty Index Plan is 0.3%.

The performance in last 5 years of HDFC Nifty Index Fund is

12.96% where ICICI Nifty Index Plan is 11.64%.

The performance since inception of HDFC Nifty Index Fund is

22.76% where ICICI Nifty Index Plan is 18.12%.

Regarding Return (upto 28 th Feb 2011)

The performance in last 6 months of HDFC Nifty Index Fund is -

2.07% where ICICI Nifty Index Plan is -1.3%.

The performance in last 1 year of HDFC Nifty Index Fund is

7.51% where ICICI Nifty Index Plan is 9.18%.

The performance in last 3 years of HDFC Nifty Index Fund is

-0.87% where ICICI Nifty Index Plan is 1.22%.

The performance in last 5 years of HDFC Nifty Index Fund is

8.7% where ICICI Nifty Index Plan is 12.89%.

The performance since inception of HDFC Nifty Index Fund is

18.97% where ICICI Nifty Index Plan is 19.43%.

FINDINGS :

According to study ICICI Nifty Index Plan is better for

investment as comparison to HDFC Nifty Index Fund.

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PORTFOLIO CHART:-

Interpretation :-

HDFC Nifty Index Fund invest their 52% in top ten equity

holdings, 39% in other equity holdings, 8% in cash margin /

earmarked cash for futures and options and 1% in other cash,

cash equivalent and net current assets.

Where ICICI Pru Nifty Plan invest their 97% in equity

holdings and 3% in short-term and other current assets.

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ASSET MANAGEMENT COMPANIES

(AMCs)

A company formed primarily to act as a manager of

another entity, distance control of the other entity from the

owners, and absorb liabilities arising from the management

function. Company that invests the pooled funds of retail

investors for a fee. By aggregating the funds of a large number

of small investors into a specific investments (in line with the

objectives of the investors), an investment company gives

individual investors access to a wider range of securities than

the investors themselves would have been able to access. Also,

individual investors should be able to save on trading costs

since the investment company is able to gain economies of

scale in operations.

AMCs operating currently are:

Name of the AMC Nature of ownership

Alliance Capital Asset Management (I) Private Limited

Private foreign Birla Sun Life Asset Management Company

Limited Private Indian Bank of Baroda Asset Management

Company Limited Banks Bank of India Asset Management

Company Limited Banks C anbank Investment Management

Services Limited Banks Cholamandalam Cazenove Asset

Management Company Limited Private foreign Dundee Asset

Management Company Limited Private foreign DSP Merrill

Lynch Asset Management Company Limited Private foreign

Escorts Asset Management Limited Private Indian First India

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Asset Management Limited Private Indian GIC Asset

Management Company Limited Institutions IDBI Investment

Management Company Limited Institutions Indfund

Management Limited Banks ING Investment Asset

Management Company Private Limited Private foreign

J M Capital Management Limited Private Indian Jardine

Fleming (I) Asset Management Limited Private foreign Kotak

Mahindra Asset Management Company Limited Private Indian

Kothari Pioneer Asset Management Company Limited Private

Indian Jeevan Bima Sahayog Asset Management Company

Limited Institutions Morgan Stanley Asset Management

Company Private Limited Private foreign Punjab National Bank

Asset Management Company Limited Banks Reliance Capital

Asset Management Company Limited Private Indian State Bank

of India Funds Management Limited Banks Shriram Asset

Management Company Limited Private Indian Sun F and C

Asset Management (I) Private Limited Private foreign

Sundaram Newton Asset Management Company Limited

Private foreign Tata Asset Management Company Limited

Private Indian Credit Capital Asset Management Company

Limited Private Indian Templeton Asset Management (India)

Private Limited Private foreign Unit Trust of India Institutions

Zurich Asset Management Company (I) Limited Private foreign

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BRIEF DESCRIPTION ABOUT SOME OF

THE AMCS IS:

1) Reliance Capital Asset Management Company

Limited (RCAM)

Reliance Capital Asset Management Limited (RCAM), a

company registered under the Companies Act, 1956 was

appointed to act as the Investment Manager of Reliance Mutual

Fund.

Reliance Capital Asset Management Limited is a wholly owned

subsidiary of Reliance

Capital Limited, the sponsor. The entire paid-up capital (100%)

of Reliance Capital Asset Management Limited is held by

Reliance Capital Limited.

Reliance Capital Asset Management Limited was approved as

the Asset Management Company for the Mutual Fund by SEBI

vide their letter no IIMARP/1264/95 dated June 30, 1995. The

Mutual Fund has entered into an Investment Management

Agreement (IMA) with RCAM dated May 12, 1995 and was

amended on August 12, 1997 in line with SEBI (Mutual Funds)

Regulations, 1996. Pursuant to this IMA, RCAM is authorized to

act as Investment Manager of Reliance Mutual Fund. The net

worth of the Asset Management Company including preference

shares as on March 31, 2005 is Rs.30.13 crores. Reliance

Mutual Fund has launched twenty five Schemes till date,

namely: Reliance Vision Fund (September 1995), Reliance

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Growth Fund (September 1995) Reliance Income Fund

(December 1997), Reliance Liquid Fund (March 1998), Reliance

Medium Term Fund (August 2000), Reliance Short Term Fund

(December 2002), Reliance Fixed Term Scheme (March 2003),

Reliance Banking Fund (May 2003), Reliance Gilt Securities

Fund (July 2003), Reliance Monthly Income Plan (December

2003), Reliance Diversified Power Sector Fund (March 2004)

Reliance Pharma Fund ( May 2004), Reliance Floating Rate

Fund (August 2004), Reliance Media & Entertainment Fund

(September 2004), Reliance NRI Equity Fund (October 2004),

Reliance NRI Income Fund (October 2004), Reliance Index Fund

(January 2005), Reliance Equity Opportunities Fund (February

2005), Reliance Fixed Maturity Fund Series I (March 2005),

Reliance Fixed Maturity Fund - Series II (April 2005), Reliance

Regular Saving Fund (May 2005), Reliance Liquidity Fund (June

2005), Reliance Tax Saver (ELSS) Fund (July 2005), Reliance

Fixed Tenor Fund (November 2005) and Reliance Equity Fund

(Feb 2006).

RCAM has been registered as portfolio managers vide SEBI

Registration No. INP000000423 and renewed effective 1st

August, 2003. RCAM has commenced these activities. It has

been ensured that key personnel of the AMC, the systems, back

office, bank and securities accounts are segregated activity

wise and there exists systems to prohibit access to inside

information of various activities. As per SEBI Regulations, it will

further ensure that AMC meets the capital adequacy

requirements, if any, separately for each such activity.

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RCAM has been appointed as the Investment Manager of

"Reliance India Power Fund", a Venture Capital Fund registered

with SEBI vide Registration no.IN/VCF/05-06/062 dated June 16,

2005 but this activity is yet to commence.

2) Birla Sun Life Asset Management Company Limited

(BSLAMC)

Birla Sun Life Asset Management Company Ltd. (BSLAMC), the

investment managers of Birla Mutual Fund, is a joint venture

between the Aditya Birla Group and the Sun Life Financial

Services Inc. of Canada. The joint venture brings together the

Aditya Birla Groups' experience in the Indian market and Sun

Life's global experience.

Since its inception in 1994, Birla Mutual Fund has emerged as

one of India's leading Mutual Funds with over Rs. 16,500 crores

* of assets under management and an investor base in excess

of 8 lakhs. The fund offers a range of investment options, which

include diversified and sector specific equity schemes, fund of

fund schemes, hybrid and monthly income funds, a wide range

of debt and treasury products and offshore funds.

BSLAMC is the first asset management company in India to be

awarded the coveted ISO 9001:2000 certification by DNV,

Netherlands. BSLAMC also provides private Wealth

Management services.

BSLAMC follows a long-term, fundamental research based

approach to investment. The approach is to identify companies,

which have excellent growth prospects and strong

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fundamentals. The fundamentals include the quality of the

company’s management, sustainability of its business model

and its competitive position, amongst other factors. Birla Sun

Life Asset Management Company has one of the largest team

of research analysts in the industry, dedicated to tracking down

the best companies to invest in.

Birla Sun Life AMC strives to provide transparent, ethical and

research-based investments and wealth management services.

Vision

To be the most trusted name in investment and wealth

management, to be the preferred employer in the industry and

to be a catalyst for growth and excellence of the asset

management business in India.

Mission

To consistently pursue investor's wealth optimization by:

Achieving superior and consistent investment results. Creating

a conducive environment to hone and retain talent. Providing

customer delight. Institutionalizing system- approach in all

aspects of functioning. Upholding highest standards of ethical

values at all times.

Values

Integrity

Commitment

Passion

Seamlessness

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Speed

3) Sundaram Newton Asset Management Company

Sundaram BNP Paribas Mutual has assets under management

to the tune of more than USD 1 billion helps investors to reach

their financial goals by delivering consistent performance

through judicious investment practices.

Vision

To be a significant player in the Indian asset management

space and be one of the top ten asset managers.

Mission

To provide people the best experience in accessing financial

markets.

Philosophy

To take the least cost and most effective solution

Never ever take short-cuts

Admit and share mistakes - internally

Take necessary steps to avoid repetition of work

Respect others, their needs, religion and sentiments

Be on time always

Communicate freely and maintain confidentiality

Develop and maintain trust

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Work as a coherent team

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4) Kotak Mahindra Asset Management Company

Limited (KMAMC)

Kotak Mahindra Mutual Fund (KMMF) is managed by Kotak

Mahindra Asset Management Company Ltd., a wholly owned

subsidiary of Kotak Mahindra Bank Ltd.

Kotak Mahindra Mutual Fund launched its Schemes in

December 1998 and today manages over Rs.13,635.83 crores

of assets from close to 4,34,622 investors in various schemes.

Kotak Mahindra is one of India's leading financial institutions,

offering complete financial solutions that encompass every

sphere of life. From commercial banking, to stock broking, to

mutual funds, to life insurance, to investment banking, the

group caters to the financial needs of individuals and

corporates.

The group has a net worth of over Rs. 2,500 crore, employs

around 6,700 people in its various businesses and has a

distribution network of branches, franchisees, representative

offices and satellite offices across 250 cities and towns in India

and offices in New York, London, Dubai and Mauritius. The

Group services over 1.6 million customer accounts.

Kotak Mahindra Asset Management Company Limited (KMAMC),

a wholly owned subsidiary of KMBL, is the asset manager for

Kotak Mahindra Mutual Fund (KMMF). KMAMC started

operations in December 1998 and has close to 4, 27,450

investors in various schemes. KMMF offers schemes catering to

investors with varying risk -return profiles and was the first

fund house in the country to launch a dedicated gilt scheme

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investing only in government securities.

5) ING Investment Asset Management Company

Private Limited (INGIM)

ING Group is a global financial services company of Dutch

origin with 150 years of experience, providing a wide array of

banking, insurance and asset management services in over 50

countries. Our 114,000 employees work daily to satisfy a broad

customer base: individuals, families, small businesses, large

corporations, institutions and governments. Based on market

capitalization, ING is one of the 20 largest financial institutions

worldwide and in the top-10 in Europe.

Mission

We strive to deliver our financial products and services in the

way our customers expect with exemplary service, maximum

convenience and at competitive rates. This is reflected in our

mission statement: To set the standard in helping our

customers manage their financial future.

Stakeholders

ING conducts its business on the basis of clearly defined

business principles. In all our activities we carefully weigh the

interests of our stakeholders: customers, employees,

shareholders, business partners and society at large. ING

strives to be a good corporate citizen.

ING Investment Management Limited (INGIM) is part of the

specialist investment network of ING Group. INGIM employs

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around 2,300 staff in 29 countries across three broad

geographic regions: Europe, the Americas and Asia Pacific. Its

global assets under management total more than a$563 billion

as at 30 September 2005.

Combining rigorous research and integrated risk management,

INGIM’s team of investment professionals is expert in

managing investments across all major asset classes, including

Australian shares, international shares, property securities and

fixed interest.

INGIM’s investment approach

INGIM’s investment philosophy maintains that markets have

inefficiencies and active portfolio management should

generate superior long-term investment returns. INGIM aims to

deliver consistently attractive returns for investors over the

long term at acceptable levels of risk.

INGIM believes that investment markets are ultimately driven

by trends in the economic cycle, and a particular asset class

tends to perform differently to other asset classes at any given

point in the cycle.

INGIM’s active portfolio management aims to take advantage

of asset class trends, adding value and managing risk.

INGIM’s multi sector and international share funds have

exposure to foreign currency. Foreign currency is actively

managed with a view to increasing the return available in

Australian dollars for the benefit of the total portfolio. Active

currency management means buying undervalued currencies

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and selling overvalued currencies.

6) TATA Asset Management Company

Tata Asset Management is one of India's fastest-growing fund

management companies, with over Rs 6,200 crore of assets

under management from over 350,000 investors. Established

in 1995, it is also one of the oldest fund management

companies in the Indian private sector.

Tata Asset Management is focused on identifying investment

avenues to generate medium term returns for corporate

investors. The company uses the latest and the best fund

management processes and techniques to service its

organizational clients through 16 branches across the country,

associates in seven other cities in India and 57 investor

servicing centers.

The company offers a wide range of investment products for

institutional investors, with schemes which include equity /

debt and balanced options across the risk-return spectrum.

Among these are:

Tata Pure Equity Fund (invested in fundamentally

undervalued companies with a medium-term horizon.

Tata Equity Opportunities Fund (aimed to capitalizing on

opportunities in the equity market).

Tata Life Sciences and Technology Fund (invested mainly

in fast-growing, intellectual property-driven, new-economy

sectors).

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Tata Select Equity Fund (invested predominantly in

growing basic sectors).

Tata Growth Fund (invested in growth-oriented

companies).

Tata Equity P/E Fund (invested predominantly in

undervalued companies).

Tata Dividend Yield Fund (invested predominantly in

stocks with high dividend yields).

Tata Tax Saving Fund (equity-linked tax-saving scheme).

Tata Balanced Fund (balanced exposure to both equities

and debt).

Tata Income Fund (invested in high-quality fixed-income

securities).

Tata Gilt Securities Fund (invested exclusively in

government securities).

Tata Short Term Bond Fund (invested mainly in short-

term, fixed-income and money-market securities).

Tata Income Plus Fund (invested in high-quality debt

securities).

Tata Dynamic Bond Fund (invested across asset and

maturity segments).

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7) State Bank of India Funds Management Limited

Banks

The greater sophistication and diversity of investors' asset

management needs requires investment management firms to

offer, in a timely manner, products that meet the needs of a

wide range of investors.

SBI Asset Management leverages its position as an independent

management company, and utilizes domestic and overseas

resources, to offer investors not just conventional financial

products, such as domestic and overseas stocks and bonds, but

alternative investment products as well, including unlisted

stocks and hedge funds.

Investing in Promising Unlisted Stocks. Very few asset

management companies offer investors a chance to invest in

unlisted stocks through public subscription investment trust,

because this requires sophisticated know-how that differs from

conventional listed stock investing.

SBI Asset Management leverages the know-how it has

accumulated through years of experience in the SBI Group

discovering promising new companies, carrying out due

diligence, following up on business trends to offer investors an

opportunity to invest in unlisted stocks through mutual funds.

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CONCLUSION

Running a successful Mutual Fund requires complete

understanding of the peculiarities of the Indian Stock Market

and also the psyche of the small investors. This study has made

an attempt to understand the financial behavior of Mutual Fund

investors in connection with the preferences of Brand (AMC),

Products, Channels etc. I observed that many of people have

fear of Mutual Fund. They think their money will not be secure

in Mutual Fund. They need the knowledge of Mutual Fund and

its related terms. Many of people do not have invested in

mutual fund due to lack of awareness although they have

money to invest. As the awareness and income is growing the

number of mutual fund investors are also growing.

“Brand” plays important role for the investment. People

invest in those Companies where they have faith or they are

well known with them. There are many AMCs. Some are

performing well due to Brand awareness. Some AMCs are not

performing well although some of the schemes of them are

giving good return because of not awareness about Brand.

Reliance, UTI, SBIMF, ICICI Prudential etc. they are well known

Brand, they are performing well and their Assets Under

Management is larger than others whose Brand name are not

well known like Principle, Sunderam, etc.

Through our study we compare the various mutual fund

schemes of HDFC and ICICI mutual fund and this will be

beneficial for the general investors for their decision making

related to mutual fund investment.

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FINDINGS

According to our study we found that :-

ICICI Focused Bluechip Equity fund is better as compare to

HDFC Top 200 Fund.

ICICI Pru Dynamic Equity Fund is better as compare to

HDFC Equity Fund.

HDFC Growth Plan is better fund as comparison to ICICI

Pru Growth Plan.

ICICI Pru Tax Plan is better as comparison to HDFC Tax

Saver.

ICICI Balanced Fund is better as comparison to HDFC

Balanced Fund.

HDFC Core and Satellite Fund is better as comparison to

ICICI Emerging S.T.A.R Fund.

ICICI Nifty Index Plan is better as comparison to Nifty

Index Plan.

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SUGGESTION

ICICI Pru Mutual Fund have better fund management, but

in ICICI Pru Growth Plan and ICICI Emerging S.T.A.R. fund they

have to improve their fund management for better

performance in future.

HDFC Mutual Fund have to improve their fund

management to compete with ICICI Mutual Funds for better

performance in future and attract more investors for

investment.

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BIBLIOGRAPHY

TELEVISION CHANNEL (CNBC AAWAJ)

MUTUAL FUND HAND BOOK

WWW.MONEYCONTROL.COM

WWW.AMFIINDIA.COM

WWW. MUTUALFUNDSINDIA.COM

WWW.ICICIPRUAMC.COM

WWW.HDFCFUND.COM

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Certificate of the

Guide

This is to certify that Jashobanta Sahoo, Final

year BBA, Ravenshaw University has successfully

completed the entrepreneurship project

“Comparative Study On The Performance Of

HDFC Mutual Fund & ICICI Prudential Mutual

Fund” under my guidance.

Date : Mukesh Agarwall

Branch ManagerICICI Mutual Fund Cuttack Branch

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Declaration

I Jashobanta Sahoo declare that this project

report entitled “Comparative Study On The

Performance Of HDFC Mutual Fund & ICICI

Prudential Mutual Fund” is an original piece of work

done and submitted by me towards partial fulfillment of

my Bachelor in Business Administration.

Jashobanta Sahoo

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Acknowledgement

Study is an excellent tool for learning and exploration. No

classroom routine can substitute which is possible while

working in real situations. Application of theoretical knowledge

to practical situations is the bonanzas of this survey.

Without a proper combination of inspection and

perspiration, it’s not easy to achieve anything. There is always

a sense of gratitude, which we express to others for the help

and the needy services they render during the different phases

of our lives. I too would like to do it as I really wish to express

my gratitude toward all those who have been helpful to me

directly or indirectly during the development of this project.

Sometimes words fall short to show gratitude, the same

happened to me during this project. The immense help and

support received from HDFC Mutual Fund & ICICI Prudential

overwhelmed me during this project.

I am highly indebted to Mrs. Madhumala Tripathy, who

has provided me with the necessary information and her

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valuable suggestions and comments on bringing out this report

in the best possible way.

I also thank our head of the department Mr. Rajesh

Kumar Sain, who has sincerely supported me at the

foundation stage of the project.

I also thank to Mr. Mukesh Agarwall (Branch manager

ICICI mutual fund )to give their valuable time and suggestion to

us regarding completion of this project

Last but not the list; my heartfelt love for my parents,

whose constant support and blessings helped me throughout

this project.

Jashobanta Sahoo