Chapter 1: Introduction

1

SYSTEMATIC INVESTMENT PLAN (SIP)

The Systematic Investment Plan (SIP) is a simple and time honored investment strategy for

accumulation of wealth in a disciplined manner over long term period. The plan aims at a

better future for its investors as an SIP investor gets good rate of returns compared to a one

time investor. A specific amount should be invested for a continuous period at regular

intervals under this plan.

SIP is similar to a regular saving scheme like a recurring deposit. It is a method of investing a

fixed sum regularly in a mutual fund.

SIP allows the investor to buy units on a given date every month.

While the investor's investment remains the same, more number of units can be bought in a

declining market and less number of units in a rising market. The investor automatically

participates in the market swings once the option for SIP is made.

SIP ensures averaging of dollar cost as consistent investment ensures that average cost per

unit fits in the lower range of average market price. An investor can either give post dated

cheques or credit card instruction and the investment will be made regularly in the mutual

fund desired for the required amount. SIP generally starts at minimum amounts of $300 per

month and upper limit could be as you may choose.

SCOPE OF STUDY

A big boom has been witnessed in Mutual Fund Industry in resent times. A large

number of new players have entered the market and trying to gain market share in this

rapidly improving market.

The research was carried on in Varanasi. I had been sent at one of the branch of HDFC

AMC LTD. Varanasi where I completed my Project work. I surveyed on my Project

Topic “Awareness of systematic plan amongst investors.” on the visiting customers of

the HDCF AMC Varanasi.

Study will help to know awareness of SIP in the customers, which company,

portfolio, mode of investment, option for getting return and so on they prefer.

This project report may help the company to make further planning and strategy.

2

Chapter 2: Industry Overview

3

History of Mutual Fund Industry

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at

the initiative of the Government of India and Reserve Bank of India. The history of mutual

funds in India can be broadly divided into four distinct phases:

First phase – 1964-87(Monopoly of UTI)

An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by the

Reserve Bank of India and functioned under the Regulatory and administrative control of the

Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial

Development Bank of India (IDBI) took over the regulatory and administrative control in

place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988

UTI had Rs.6, 700 crores of assets under management.

Second Phase – 1987-93(Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks

and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India

(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987

followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),

Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), and Bank of Baroda Mutual

Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual

fund in December 1990. At the end of 1993, the mutual fund industry had assets under

management of Rs.47,004 crores.

Third Phase – 1993-2003(Entry of Private Sector Funds

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year

in which the first Mutual Fund Regulations came into being, under which all mutual funds,

except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged

with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and

revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI

(Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing,

with many foreign mutual funds setting up funds in India and also the industry has witnessed

4

several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds

with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of

assets under management was way ahead of other mutual funds.

Forth Phase – Since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was

bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of

India with assets under management of Rs.29, 835 crores as at the end of January 2003,

representing broadly, the assets of US 64 scheme, assured return and certain other schemes.

The Specified Undertaking of Unit Trust of India, functioning under an administrator and

under the rules framed by Government of India and does not come under the purview of the

Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB,

BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.

With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000

crores of assets under management and with the setting up of a UTI Mutual Fund,

conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place

among different private sector funds, the mutual fund industry has entered its current phase of

consolidation and growth. As at the end of October 31, 2003, there were 31 funds, which

manage assets of Rs.126726 crores under 386 schemes.

Mutual funds have played a significant role in financial intermediation, the development of

capital markets and the growth of the Indian Economy. The Indian mutual fund industry has

been no exception. Though it is relatively new, it has grown at a dynamic speed, influencing

various sectors of the financial market and the national economy.

The Indian economy is under transition on account of the on going structural adjustment

programs and liberalization. The corporate sector and the investment community play a major

role in the markets today. Economic transition is usually marked by changes in the market

mechanics, institutional integration, market regulations, relocation of savings and investments

and changes in inter-scrotal relationships.

5

Customers Profile of Mutual Fund Industry

(Type of Customers)

1. While you recommend a financial plan, you also need to understand the needs and

financial objectives of your customer along with his risk tolerance and his

expectations from the investments.

2. Honest and straightforward advice is appreciated. Help your customers make the

right choice.

3. Advise your customers to start investing early and regularly to help them optimize

the benefits of the compounding rupee.

4. Help your investors with the procedures and paper work involved in making an

investment.

Treat every customer exclusively. A satisfied customer can give you increased business

through resale and referrals of other prospective customers.

6

Positioning Strategy of Mutual Fund Industry

Positioning starts with a product. But positioning is not what you do to a product. Positioning

is what you do to the mind of the prospect. That is, you position the product in the mind of

prospect. A company’s differentiating and positioning strategy must change as the product,

market, and competitors change over time. . There should be no under positioning, over

positioning, confused positioning or doubtful positioning.

Channels of Distribution

In Every asset Management Company’s distribution channel played very important roles.

Here assets management companies have distributors like :

Consultants

Agents

Distributors

Advisers

Broker

Their role is very important for Assets Management Company’s Office.

Promotional Tools Employed by Mutual Fund Companies

Some specific other documents help to increase selling product like: -

(1) Banners:

Banners define brief idea of scheme, it should be very attractive with specific objective &

its related picture in city, and Banners keep in specific places which very help to do good

publicity. It distributes only by AMC’s office. When any new scheme is launched or any

new NFO coming up that times company make banners before few days. Its helps to good

advertising & easy cover to customer or people.

7

(2) Application Form:

Any product like Equity, debt and balance, investor should fill up its common

Application forms. Form define acknowledge slip which give return to customer.

Actually 3-time stamp done in form, one of them is acknowledged slip. These forms are

distributed by Assets Management Company’s office. It is all Assets Management

Company’s office duty to dispatch forms to their customer like agents, brokers, and

advisers time to time.

(3) Broachers:

Broachers include brief history of company. It defines when and where assets

management Company invests investor’s money. This defines performance of each

scheme product & also defines its comparison to last 3 months to more than 5 years. In

end of every month Assets Management Company’s office send Boucher to their

investors, brokers, agents, advisers regularly.

8

Chapter 3: Company Overview

9

Background and Objective of HDFC Group

Background

HDFC was incorporated in 1977 with the primary objective of meeting a social need – that of

promoting home ownership by providing long-term finance to households for their housing

needs. HDFC was promoted with an initial share capital of Rs. 100 million.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country

through the provision of housing finance in a systematic and professional manner, and to

promote home ownership. Another objective is to increase the flow of resources to the

housing sector by integrating the housing finance sector with the overall domestic financial

markets...

Organizational Goals

HDFC’s main goals are to

a) Develop close relationships with individual households,

b) Maintain its position as the premier housing finance institution in the country,

c) Transform ideas into viable and creative solutions,

d) Provide consistently high returns to shareholders, and

e) To grow through diversification by leveraging off the existing client base.

10

Key Companies of HDFC group

HDFC Reality

HDFC Bank

HDFC Standard Life Insurance

HDFC Mutual Fund

HDFC Chubb General Insurance

Credit Information Bureau (INDIA) Limited

HDFC Securities

HDFC Consultancy Services

Intel net Global

HDFC-Asset Management Company

An HDFC asset Management Company limited is well-established fund house. HDFC Assets

Management Company limited is sponsored by Housing Development Finance Corporation

Limited (HDFC) andhttp://www.standardlifeinvestments.com/ Standard life investments

limited.

HDFC assets Management Company limited launched its scheme HDFC EQUITY FUND in

the year January 1995. Since then it focused on different class of schemes for many years and

launched several innovative products that went to become bourgeoning categories in the

Indian mutual fund industry.

Some of these were HDFC GROWTH FUND, HDFC TOP 200 FUND, and HDFC

BALANCED FUND, HDFC PRUDENCE FUND etc. HDFC assets Management Company

limited have offices in 29 cities and currently manage assets in excess of Rs 75,406.10 cores.

(May 2009)

HDFC was incorporated in 1977 as the first specialized Mortgage Company in India. HDFC

is a Premier Housing Finance Company in India. HDFC provides financial assistance to

individuals, corporates and developers for the purchase or construction of residential housing.

It also provides property related services (e.g. property identification, sales services and

11

valuation), training and consultancy. Of these activities, housing finance remains the

dominant activity. HDFC has a client base of around 10 lac borrowers, around 10 lac

depositors, over 1,23,000 shareholders and 50,000 deposit agents, as at March 31, 2009. The

Company has a total asset size of Rs. 96,993 crore as at March 31, 2009 and cumulative

approvals and disbursements of housing loans of Rs. 237,450 crore and Rs. 191,806 crore

respectively as at March 31, 2009. HDFC had raised funds from international agencies such

as the World Bank, IFC (Washington), USAID, DEG, ADB and KfW, international

syndicated loans, domestic term loans from banks and insurance companies, bonds and

deposits. HDFC has received the highest rating for its deposits program for the fourteenth

year in succession.

STANDARD LIFE INVESTMENTS LIMITED

Standard Life Investments Limited is the dedicated investment management company of the

Standard Life group and is a wholly owned subsidiary of Standard Life Investments

(Holdings) Limited, which in turn is a wholly owned subsidiary of Standard Life plc. With

global assets under management of approximately US$ 169 billion as at March 31, 2009,

Standard Life Investments Limited is one of the world's major investment companies and is

responsible for investing money on behalf of five million retail and institutional clients

worldwide. Standard Life Investments is a leading asset management company, with

approximately US$ 169 billion of assets under management as at March 31, 2009. The

company operates in the UK, Canada, Hong Kong, China, Korea, Ireland, Paris, Sydney and

the USA to ensure it is able to form a truly global investment view.

Board of Directors

The Board of Directors of the HDFC Asset Management Company Limited (AMC) consists

of the following eminent persons.

Mr. Deepak S Parekh

Mr. Hoshang S. Billimoria

Mr. N. Keith Skeoch

Mr. Humayun Dhanrajgir

12

Ms. Renu S. Karnad

Mr. Milind Barve

Mr. Mark Connolly

Mr. Rajeshwar Ram Bajaj

Mr. P. M. Thampi

Dr. Deepak Phatak

Product Details

Equity Schemes of HDFC

1. HDFC Equity Fund:-

Investment Objective: The investment objective of the Scheme is to achieve capital

appreciation.

Investment Options: Dividend & Growth Option

Nature of Scheme: Open-ended Growth Scheme

Inception Date: January 01, 1995

2. HDFC growth fund:-

Investment Objective: The primary investment objective of the Scheme is to generate

long term capital appreciation from a portfolio that is invested predominantly in equity

and equity related instruments.

Investment Options: Dividend & Growth Option

Nature of Scheme: Open-ended Growth Scheme

Inception Date: September 11, 2000

13

3. HDFC Top 200 Fund:-

Investment Objective: To generate long-term capital appreciation from a portfolio of

equity and equity-linked instruments primarily drawn from the companies in BSE 200

index.

Investment Options: Dividend & Growth Option

Nature of Scheme: Open-ended Growth Scheme

Inception Date: October 11, 1996

4. HDFC Capital Builder Fund:-

Investment Objective: To generate long-term capital appreciation from a portfolio that is

substantially constituted of equity and equity related securities of Small and Mid-Cap

companies.

Investment Options: Dividend & Growth Option

Nature of Scheme: Open Ended Growth Scheme

Inception Date: February 01, 1994

5. HDFC Core & Satellite Fund:-

Investment Objective: The primary objective of the Scheme is to generate capital

appreciation through equity investment in companies whose shares are quoting at prices

below their true value.

Investment Options: Dividend & Growth Option

Nature of Scheme: Open Ended Growth Scheme

Inception Date: September 17, 2004

6. HDFC Premier Multi-Cap Fund:-

Investment Objective: The primary objective of the Scheme is to generate capital

appreciation in the long term through equity investments by investing in a diversified

portfolio of Mid Cap and Large Cap `blue chip` companies.

Investment Options: Dividend Plan, Growth Plan, The Dividend Plan offers Dividend

Payout and Reinvestment Facility.

14

Nature of Scheme: Open Ended Growth Scheme

Inception Date: April 06, 2005

Balanced Schemes of HDFC

1. HDFC Balanced Fund: -

Investment Objective: The primary objective of the Scheme is to generate capital

appreciation along with current income from a combined portfolio of equity and equity

related and debt and money market instruments.

Investment Options: Dividend & Growth Option

Nature of Scheme: Open Ended balanced fund

Inception Date: September 11, 2000

2. HDFC Prudence Fund:-

Investment Objective: The investment objective of the Scheme is to provide periodic

returns and capital appreciation over a long period of time, from a judicious mix of equity

and debt investments, with the aim to prevent/ minimize any capital erosion.

Investment Options: Dividend & Growth Option

Nature of Scheme: Open Ended balanced fund

Inception Date: February 01, 1994

3. HDFC Short Term Plan:-

Investment Objective: - The primary objective of the HDFC Short Term Plan is to

generate regular income through investment in Debt Securities and Money Market

Instruments.

Investment Options: Growth Plan, Dividend Plan. The Dividend Plan offers Dividend

Payout and Reinvestment Facility.

Nature of Scheme:- Open Ended income fund

Inception Date: - February 28, 2002

15

4. HDFC Multi Yield Fund :-

Investment Objective: The primary objective of the Scheme is to generate positive

returns over medium time frame with low risk of capital loss over medium time frame.

Investment Options: Growth Plan, Dividend Plan. The Dividend Plan offers Dividend

Payout and Reinvestment Facility.

Nature of Scheme: - Open Ended income fund

Inception Date: - September 17, 2004

Debt Schemes of HDFC

1. HDFC Income Fund:-

Investment Objective: - The primary objective of the Scheme is to optimize returns

while maintaining a balance of safety, yield and liquidity.

Investment Options: Dividend & Growth Option

Nature of Scheme: - Open-ended Income Scheme

Inception Date: - September 11, 2000

HDFC Income Fund: -

Investment Objective: - The investment objective of HDFC High Interest Fund is to

generate income by investing in a range of debt and money market instruments of various

maturity dates with a view to maximizing income while maintaining the optimum balance

of yield, safety and liquidity.

Investment Options: Dividend & Growth Option

Nature of Scheme: - Open Ended Income Scheme

Inception Date: - April 28, 1997

2. HDFC MF Monthly Income Plan - Short Term Plan:-

Investment Objective: - The primary objective of Scheme is to generate regular returns

through investment primarily in Debt and Money Market Instruments. The secondary

16

objective of the Scheme is to generate long-term capital appreciation by investing a

portion of the Scheme’s assets in equity and equity related instruments. However, there

can be No assurance that the investment objective of the Scheme will be achieved.

Investment Options: Quarterly Dividend Option, Monthly Dividend Option, and Growth

Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility

Nature of Scheme: - An open-ended income scheme. Monthly income is not assured and

is subject to availability of distributable surplus

Inception Date:- December 26, 2003

3. HDFC MF Monthly Income Plan - Long Term Plan:-

Investment Objective: - The primary objective of Scheme is to generate regular returns

through investment primarily in Debt and Money Market Instruments. The secondary

objective of the Scheme is to generate long-term capital appreciation by investing a

portion of the Scheme’s assets in equity and equity related instruments. However, there

can be no assurance that the investment objective of the Scheme will be achieved

Investment Options: Growth Plan, Quarterly Dividend Option, Monthly Dividend

Option. The Dividend Plan offers Dividend Payout and Reinvestment Facility.

Nature of Scheme: - An open-ended income scheme. Monthly income is not assured and

is subject to availability of distributable surplus

Inception Date: - December 26, 2003

17

Chapter 4: Review of Literature /

Theoretical Background (delete whichever

is not applicable)

18

HDFC MF SIP is similar to a Recurring Deposit. Every month on a specified date an amount

you choose is invested in a mutual fund scheme of your choice. The dates currently available

for SIPs are the 1st, 5th, 10th, 15th, 20th and the 25th of a month. You’ll be amazed to learn

about the many benefits of investing through HDFC MF SIP. 

Become A Disciplined Investor

Being disciplined - It’s the key to investing success. With the HDFC MF Systematic

Investment Plan you commit an amount of your choice (minimum of Rs. 500 and in multiples

of Rs. 100 thereof*) to be invested every month in one of our schemes. 

Think of each SIP payment as laying a brick. One by one, you’ll see them transform into a

building. You’ll see your investments accrue month after month. It’s as simple as giving at

least 6 postdated monthly cheques to us for a fixed amount in a scheme of your choice. It’s

the perfect solution for irregular investors. 

*Minimum amounts may differ for each Scheme.

Reach Your Financial Goal

Imagine you want to buy a car a year from now, but you don’t know where the down-

payment will come from. HDFC MF SIP is a perfect tool for people who have a specific,

future financial requirement. By investing an amount of your choice every month, you can

plan for and meet financial goals, like funds for a child’s education, a marriage in the family

or a comfortable postretirement life. The table below illustrates how a little every month can

go a long way. 

19

Table A:-

Monthly Savings - What your savings may generate

Savings per month 

(for 15 years)

Total amount invested 

(Rs. in Lacs)

Rate of return

6.0% 8.0% 10.0%

(rupees in lacs, 15 years later)*

5000 9.0 14.6 17.4 20.9

4000 7.2 11.7 13.9 16.7

3000 5.4 8.8 10.4 12.5

2000 3.6 5.8 7.0 8.3

1000 1.8 2.9 3.5 4.2

*Monthly instalments, compounded monthly, for a 15-year period.

Disclaimer: The illustration above is merely indicative in nature and should not be construed

as investment advice. It does not in any manner imply or suggest performance of any HDFC

Mutual Fund Scheme(s).  

Take Advantage of Rupee Cost Averaging

Most investors want to buy stocks when the prices are low and sell them when prices are

high. But timing the market is time consuming and risky. A more successful investment

strategy is to adopt the method called Rupee Cost Averaging. To illustrate this we’ll compare

investing the identical amounts through a SIP and in one lump sum. 

Imagine Suresh invests Rs. 1000 every month in an equity mutual fund scheme starting in

January. His friend, Rajesh, invests Rs. 12000 in one lump sum in the same scheme. The

following table illustrate how their respective investments would have performed from Jan to

Dec: 

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Table B:-

    Suresh’s Investment Rajesh’s Investment

Month NAV Amount Units Amount Units

Jan-04 9.345 1000 107.0091 12000 1284.1091

Feb-04 9.399 1000 106.3943    

Mar-04 8.123 1000 123.1072    

Apr-04 8.750 1000 114.2857    

May-04 8.012 1000 124.8128    

Jun-04 8.925 1000 112.0448    

Jul-04 9.102 1000 109.8660    

Aug-04 8.310 1000 120.3369    

Sep-04 7.568 1000 132.1353    

Oct-04 6.462 1000 154.7509    

Nov-04 6.931 1000 144.2793    

Dec-04 7.600 1000 131.5789    

*NAV as on the 10th every month. These are assumed NAVs in a volatile market

Disclaimer: The illustration above is merely indicative in nature and should not be construed

as investment advice. It does not in any manner imply or suggest performance of any HDFC

Mutual Fund Scheme(s). Rupee Cost Averaging neither ensures you profits nor protects you

from making a loss in declining markets.

As seen in the table, by investing through SIP, you end up buying more units when the price

is low and fewer units when the price is high. However, over a period of time these market

fluctuations are generally averaged. And the average cost of your investment is often

reduced. 

Grow Your Investment with Compounded Benefits

21

It is far better to invest a small amount of money regularly, rather than save up to make one

large investment. This is because while you are saving the lump sum, your savings may not

earn much interest. 

With HDFC MF SIP, each amount you invest grows through compounding benefits as well.

That is, the interest earned on your investment also earns interest. The following example

illustrates this. 

Imagine Neha is 20 years old when she starts working. Every month she saves and invests Rs.

5,000 till she is 25 years old. The total investment made by her over 5 years is Rs. 3

lakhs.Arjun also starts working when he is 20 years old. But he doesn’t invest monthly. He

gets a large bonus of Rs. 3 lakhs at 25 and decides to invest the entire amount. 

Both of them decide not to withdraw these investments till they turn 50. At 50, Neha’s

Investments have grown to Rs. 46,68,273* whereas Arjun’s investments have grown to Rs.

36,17,084*. Neha’s small contributions to a SIP and her decision to start investing earlier

than Arjun have made her wealthier by over Rs. 10 lakhs. 

Do All This Effortlessly

Investing with HDFC MF SIP is easy. Simply give us post-dated cheques or opt for an

Auto Debit from your bank account for an amount of your choice (minimum of Rs. 500 and

in multiples of Rs. 100 thereof*) and we’ll invest the money every month in a fund of your

choice. The plans are completely flexible. You can invest for a minimum of six months, or

for as long as you want. You can also decide to invest quarterly and will need to invest for a

minimum of two quarters. 

22

Chapter 5: Objective

23

To understand the needs of the investors with respect to their investment and

various options where investors invest their money

To understand the awareness of SIP route to invest.

To understand the reasons to invest or not to invest in SIP.

24

Chapter 6: Research Methodology

Research Methodology is the investigation of specific problem in detail. At first

problem is defined carefully for conducting research. There should be a good research

plan for conducting research. No research can be done without data collection. After all

this analysis made for getting solution for problem.

25

Define the problem

Define the sample size

Collection of data

Analysis and interpretation

Defining the problem

Defining the research problem is first necessary step for any research. This work

should be done carefully. Here research problem is to know wilingess of general public

to work as an agent with private player or HDFC MUTUAL FUND.

Research plan

This report is based on primary as well secondary data, however primary data

collection was given more importance since it is overhearing factor in attitude studies.

One of the most important users of research methodology is that it helps in identifying

the problem, collecting, analyzing the required information data and providing an

alternative solution to the problem .It also helps in collecting the vital information that

is required by the top management to assist them for the better decision making both

day to day decision and critical ones.

Data sources:

Research is totally based on primary data. Secondary data can be used only for the

reference. Research has been done by primary data collection, and primary data has

26

been collected by interacting with various people. The secondary data has been

collected through questionnaire.

Duration of Study:

The study was carried out for a period of two months, from 15th May to 15th July 2011

Sampling:

Sampling procedure: The sample was selected of them who are the customers/visitors

of HDFC Asset Management Company Limited AD-64/127, 4th Floor Arihant

Complex, Sigra Limited, Varansi irrespective of them being investors or not or

availing the services or not. It was also collected through personal visits to persons, by

formal and informal talks and through filling up the questionnaire prepared. The data

has been analyzed by using mathematical/Statistical tool.

Sample size:

The sample size of my project is limited to 100 people only.

Sample design:

Data will be presented with the help of bar graph, pie charts, line graphs etc.

27

Chapter 7: Data Analysis and Interpretation

1. Qualification of the investors?

Table 1:-

Qualification Investors

Graduate/PG 58

Undergraduate 32

28

Others(Students etc) 10

Chart 1:-

Graduate/PG Undergraduate Others(Students etc)0

10

20

30

40

50

60

70

58

32

10

Interpretation:-

Qualification of investor who are Graduate/PG are 58 , Undergraduate are 32 and other are

only 10 . We can say more graduate/PG people are investors

2. Occupation of the investors?

Table 2:-

Occupation No. of respondents

Govt. sector 27

Pvt. sector 38

29

Business 24

Agriculture 04

Others 07

Chart 2:-

Govt. Sector Pvt. Sector Business Agriculture Others 0

5

10

15

20

25

30

35

40

27

38

24

47

Interpretation:-

Occupation of investors pvt. Sector are 38 , govt. sector are 27 , business are 24 , agriculture are 4 and others are 7. We can say more number of investors are from pvt. Sector.

3. Monthly income of the investors?

Table 3:-

Income No. of respondents

Up to Rs.10,000 2

Rs.10,001 to 15,000 4

30

Rs.15,000 to 20,000 11

Rs.20,000 to 30,000 17

Rs.30,001 and above 66

Chart 3:-

2% 4%11%

17%

66%

Up to Rs.10,000 Rs. 10,001 to 15000 Rs. 15,001 to 20,000 Rs. 20,001 to 30,000 Rs. 30,001 and above

Interpretation:-

Family income of investors Up to Rs.10,000 are only 2% , Rs.10,001 to 15,000 are only 4%

Rs.15,001 to 20,000 are only 11% , Rs.20,001 to 30,000 are only 17% and above 30,000 are

66%. We can say , the family income of investors are more than 30,000 , they are more

invest.

4. How many people are invest?

Table 4:-

Yes 96

31

No 4

Chart 4:-

96%

4%

Yes No

Interpretation:-

96% of people are invest and 4% of people are not invest. We can say most of the people

invest.

5. Awareness of various investment options?

Table 5:-

Investmentplan

Fixed deposit

Real estate

Mutualfund

Pensionplan

PPF Gold Any other

32

No.of respondents

45 60 53 65 40 58 62

Chart 5:-

fixed deposit real estate mutul fund pension plan PPF gold any other0

10

20

30

40

50

60

70

45

60

53

65

40

5862

(Define investments avenues)

Interpretation:-

From the above charts we can interpret that awareness of other option like fixed deposit is 45,

real estate is 60 , mutual fund is 53 , pension plan 65 , PPF 40,gold 58 and any 62 other plan

among the most of investors.

6. Investment in systematic investment plan?

Table 6:-

Yes 55

33

No 45

Chart 6:-

Yes No0

10

20

30

40

50

60

Interpretation:-

55 people are invest in SIP and 45 people are not invest . we can say more people are invest

in SIP.

7. Reasons for investing in SIP?

Table 7:-

Capital prevention 55

34

Retirement 52

Children education 48

Income growth 54

Tax saving 55

Others 45

Chart 7:-

Capital preven-

tion18%

Retirement17%

Chil-dren

educa-tion16%

Income growth17%

Tax saving18%

Others15%

Interpretation:-

People who invest for capital prevention are 55 , retirement are 52 , for children education are

48 , for income growth are 54 , for tax saving are 55 and for other are 45. We can say

different people invest according their needs and want.

8. If yes, in which assets class would you prefer to invest in Mutual Fund?

Table 8:-

TYPES OF SCHEMES RESPONSE PERCENTAGE

35

EQUITY 30 50.00%

DEBT 22 36.67%

LIQUID 8 13.33%

Chart 8:-

EQUITY(50%) DEBT(36.67%) LIQUID(13,33%)

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

LIQUIDDEBTEQUITY

(Define schemes preferred by investors)

Interpretation: -

From the above chart it is getting clear that from 100 peoples sample 60(60%) people are

invest in Mutual fund and out of 30 (50%) people invests in equity assets class and

22(36.37%) people choose to invests in debt class but only just 8(13.33%) peoples choose to

invests in liquid class.

9. Do you invest in HDFC assets Management Company limited?

Table 9:-

YES NO TOTAL

36

56 44 100

Chart 9:-

56

44

0

10

20

30

40

50

60

YES NO

PREFERNCE

NO

OF

PE

OP

LE

Series1

(Define investment in HDFC assets Management Company)

Interpretation: -

From the above chart it is getting clear that out of 100 people sampled, 56 peoples are invest

in HDFC assets management company and 44 peoples are not invests in HDFC assets

management company.

10. Awareness of various schemes of HDFC?

Table 10:-

Schemes Of HDFC No. Of Investors

37

Equity Fund 43

Capital Builder Fund 2

Prudence Fund 17

Tax Saver Fund 35

Core And Satellite Fund 3

Top 200 Fund 16

Balanced Fund 1

Growth Fund 16

Others Fund 5

Chart 10:-

NO OF INVESTOERS

43

21735

3

161

16 5

EQUITY FUND CAPITAL BUILDER FUND

PRUDENCE FUND TAX SAVER FUND

CORE AND SATELITE FUND TOP 200 FUND

BALANCED FUND GROWTH FUND

OTHERS FUND

(Define scheme in which investors invest in HDFC assets Management Company)

Interpretation:

we can see that in HDFC assets Management Company’s EQUITY FUND maximum number

(43) of people are aware. In TAX SAVER FUND 35 number of people invests. In both TOP

200 FUND and GROWTH FUND 16 numbers of people are aware but in BALANCED

FUND, CAPITAL BUILDER FUND, CORE AND SATELITE FUND only 1, 2 and 3

people are aware.

11. By which medium you invest in HDFC assets Management Company limited?

Table 11:-

38

MEDIUM OF INVESTMENT NO. OF PEOPLE

DISTRIBUTOR 8

BANK 48

ONLINE / SELF 0

Chart 11:-

8

48

00

51015

20253035

404550

DISTRIBUTOR ONLINE

MEDIUMS

NO OF PEOPLE

NO OF PEOPLE

(Define mediums chosen by investors for invest in HDFC assets management company)

Interpretation: -

From the above chart it’s getting cleared that most of the peoples (48) are invest by bank and

only 8 peoples are invest by distributors. Nobody invests through online. So here HDFC

assets Management Company has to provide facility by which investors invest their money

without any middle man in mutual fund schemes through online.

Note: - Here out of 100 respondents, 44 respondents are not investing in HDFC assets

Management Company. These responds are not considered in these questions.

12. Do you know about ongoing new fund offer of HDFC Assets Management Company limited?

Table 12:-

39

AWARENESS OF NFO NUMBER PERCENTAGE

YES 58 58%

NO 42 42%

TOTAL 100 100%

Chart 12:-

NUMBER

58

42

YES

NO

Interpretation: -

The above pie - chart shows that around 58% people aware of on going new fund offer of

HDFC assets Management Company and only 42% people are unaware from on going new

fund offer of HDFC assets management company.

40

Chapter 8: Conclusions

41

Occupation, income level and qualification have impact on investors.

Most of the people invest regularly.

Distributor plays vital role in investment. Distribution channels are also important for the investment in SIP.

Lack of awareness is barrier for Systematic Investment Plan.

Tax saving, children education, retirement etc scheme influence customer to invest in SIP.

42

Chapter 9: Limitations

Some of the persons were not so responsive.

Possibility of error in data collection because many of investors may

have not given actual answers of my questionnaire.

43

Sample size is limited to 100 visitors of HDFC AMC

COMPANY LIMITED AD-64/127, 4th Floor Arihant

Complex, Sigra Limited, Varanasi

The research is confined to a certain part of Varanasi.

44

Chapter 10: Recommendations

The most vital problem spotted is of ignorance. Investors should be made aware of the

benefits investing in mutual funds.

The advisors should target for more and more young investors. Young investors as

well as persons at the height of their career would like to go for advisors due to lack

of expertise and time.

45

The advisors may try to highlight some of the value added benefits of MFs such as tax

benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. These

benefits are not offered by other options single handed.

Organisation should engage banks to sell the systematic investment plan to increase

the number of investors. Company should training to the bank and distributor staff

about systematic investment plan.

46

Appendices

Questionnaire

NAME: -

ADDRESS: -

47

CONTACT NO: (O) (R) (M)

(1) (a). What is qualification:-

(b). What is occupation. Pl tick (√)

Govt. Ser Pvt. Ser Business Agriculture Others

(c). What is your monthly family income approximately? Pl tick (√).

Up to Rs.10,000

Rs. 10,001 to 15000

Rs. 15,001 to 20,000

Rs. 20,001 to 30,000

Rs. 30,001 and above

(2) Are you aware Systematic Investment plan?

Yes No

(3) If you are aware of asset management co. If Yes, which AMC will you

Prefer?

Assets Management Co.

a. HDFC MF

48

Graduation/PG Under Graduate Others

b. UTI

c. Reliance

d. SBI

e. Kotak

f. ICICI

(4)Which are the other options you are aware of?

a. Fixed deposit b. Mutual fundb. Pension plan c. PPFd. Insurance e. Stock market f. Gold g. Any other

(5) In which assets class do you want to invest in S I P in mutual funds?

Equity Debt Liquid

(6) Do you invest in HDFC Systematic investment Plan?

Yes No

(7) If yes, in which scheme have you invested?

49

Equity

Capital builder

Prudence fund

Tax saver

Top 200 fund

Balanced fund

Growth

Others

(8) Reasons for investing in SIP?

a. Capital prevention ( )b. Tax saving ( )c. Children education ( )d. Income growth ( )e. Retirement ( )f. Any other ( )

(9) By which medium have you invested?

50

Distributor Bank Online

(10) What is the reason for selecting HDFC S I P ?

Better fund house

Excellent customer service provider

Consistent return

Other

If other please specify

(11) If no, why do not invest in SIP?

(a) No monthly imprest

(b)Not much aware

(c) Other better option

(12) Do you know about ongoing new fund offers of HDFC AMC?

Yes No

51

Would you like the bank to contact you for providing information about its fund offers?

Remarks if any other please specifies: -

Thank you for your time.

52

Bibliography

www.hdfcfund.com

www.the-finapolis.com

www.mutualfundsindia.com

www.valueresearchonline.com

www.moneycontrol.com

www.morningstar.com

www.yahoofinance.com

www.theeconomictimes.com

www.rediffmoney.com

www.bseindia.com

53

www.nseindia.com

www.investopedia.com

Journals & other references

HDFC AMC manual

The Economic Times

Business Standard

The Telegraph

Business India

Fact sheet and statements of various fund houses

54