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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:
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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.
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.
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(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.
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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
(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.
(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
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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.
2.1 Introduction
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If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and Chairman-
Emeritus, of HDFC Group who left this earthly abode on November 18, 1994. Born in a traditional
banking family in Surat, Gujarat, Mr. Parekh started his financial career at Harkisandass Lukhmidass –
a leading stock broking firm. The firm closed down in the late seventies, but, long before that, he went
on to become a towering figure on the Indian financial scene.
In 1956 he began his lifelong financial affair with the economic world, as General
Manager of the newly formed Industrial Credit and Investment Corporation of India (ICICI).
He rose to become Chairman and continued so till his retirement in 1972.
At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious than
his first. His vision for mortgage finance for housing gave birth to the Housing
Development Finance Corporation – it was a trendsetter for housing finance in the whole
Asian continent.
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 June 30, 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 AMC to manage
the Mutual Fund. As per the terms of the Investment Management Agreement, the AMC will conduct
the operations of the Mutual Fund and manage assets of the schemes, including the schemes launched
from time to time.The present shareholding pattern of the AMC is as follows:
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.
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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:
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
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b) Maintain its position as the premier housing finance institution in the country,
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
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.
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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 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 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.
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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
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Research Objectives addresses the purpose of the investigation. It is here that you layout exactly what
is being planned by the proposed research. The Research Objectives flows naturally from the problem
statement, giving the sponsor specific, concrete, and achievable goals. It is best to list the objectives
either in order of importance or in general terms first, moving to specific terms. Research Objective is
the basis for judging the Research process. It is the final step giving exact definition of problem.
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Analyzing mutual fund awareness in retail investors of HDFC assets Management Company in
Bhavnagar.
With liberalization, privatization and globalization there has been a major change in the Indian Mutual
Funds Industry. The momentum is on and one is sure to see similar hectic activity at the offices of the
new entrants especially after the 90’s as private sector gained entry in the Indian markets.
With the private sector penetration, a large number of schemes have also been introduced due to which
the average consumer has become vary sensitive to the new schemes coming its way. So to ensure
about the various consumer attitudes, a survey was undertaken.
De facto, to ensure what the “consumer thinks” & “what it thinks the best” we undertook a consumer
survey, to get a clear picture of the future of the Mutual Funds companies who are busy wooing the
customers, with their lucrative schemes, to survive the rat race & emerge as no.1 in this field.
Research design describes as a master plan a series of key decisions that serves a model for
conducting a research project. There are the main components of research design.
• Objective of research
• Data inputs
• Analysis of data collected
The research design was exploratory type and the focus was on getting mutual fund’s views for
various products, expectations from market
Exploratory Research:
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Exploratory study goes beyond description and attempts to explain the reasons for the phenomenon
that the descriptive study only observed. The researcher uses theories or at least hypotheses to account
for the forces that caused a certain phenomenon to occur.
Target population
Target population was the retail investors of HDFC-AMC, Bhavnagar branch
Sample size
The sample size taken for the study is 100.
Sampling method
The retail investors of HDFC-AMC, Bhavnagar branch had been selected on the basis of convenience
sampling. The study is the sample survey having small size sample have the customer of the bank.
I have taken 100 responds as a sample size for this particular project.
The following table shows area wise distribution of sample size:
AREA SAMPLES
KALANALA 20
WAGHAWADI ROAD 30
KANBIWAD 15
VIDYANAGAR 15
PATEL PARK 10
SARDARNAGAR 10
TOTAL 100
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Analyzing the requirement of data, it was found that primary data is more important for achieving
Research Objective.
Questionnaire A prepared set of questions designed to generate data necessary for accomplishing the
objectives of the research project.
I used survey method for data collection. Information was collected by personal interviews through
questionnaire.
Following types of measurement scales were used in the questionnaire:
4.1 Introduction
Mutual Fund – Concept
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial
goal. The money thus collected is invested by the fund manager in different types of securities
depending upon the objective of the scheme. These could range from shares to debentures to money
market instruments. The income earned in these investments and the capital appreciation realized by
the scheme is 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 portfolio at a relatively low cost. Anybody with an invest able
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surplus of a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined
investment objective and strategy.
A mutual fund is the ideal investment vehicle for today’s complex and modern financial scenario.
Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other
assets have become mature and information driven. Price changes in these assets are driven by global
events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills,
inclination and time to keep track of events, understand their implications and act speedily.
A mutual fund is answer to all these situations. It appoints professionally qualified and experienced
staff that manages each of these functions on a fulltime basis. The large pool of money collected in the
fund allows it to hire such staff at a very low cost to each investor. In fact, the mutual fund vehicle
exploits economies of scale in all three areas –research, investment and transaction processing.
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(Source: www.indiamart.com)
The fund manager while investing on behalf of investors takes into consideration various factors like
time, risk, return, etc. so that he can make proper investment decision.
BY INVESTMENT OBJECTIVE
A. Growth/Equity Oriented Schemes
B. Income/Debt Oriented Schemes
C. Balanced Schemes
D. Money Market/Liquid Schemes
E. Gilt Schemes
F. Index Schemes
OTHER SCHEMES
A. Sector Specific Schemes
B. Tax Saving/ELSS Schemes
# BY STRUCTURE
As the name implies the size of the scheme (fund) is open – i.e. not specified or pre-determined. Entry
to the fund is always open, the investor who can subscribe at anytime. Such fund stands ready to buy
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or sell its securities at anytime. The key feature of Open-ended schemes is Liquidity. It implies that the
capitalization of the fund is constantly changing as investors sell or buy their shares. Further, the
shares or units are normally not traded on the stock exchange but are repurchased by the funds at
announced rates. Open-ended schemes have comparatively better liquidity despite the fact that these
are not listed. The reason is that investors can any time approach mutual fund for sale of such units.
No intermediaries are required. Moreover, the realizable amount is certain since repurchase is at a
price based on declared net asset value (NAV). The portfolio mix of such schemes has to be
investments, which are actively traded in the market. Otherwise it will not be possible to calculate
NAV. This is the reason that generally open-ended schemes are equity based. In Open-ended schemes,
the option of dividend reinvestment is available.
B. Close-Ended Schemes:
A Close – ended schemes have a definite period after which their shares/units are redeemed. The
scheme is open for subscription only during a specified period at the time of launch of a scheme.
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 the units are listed. In order to provide an
exit route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. In these types of schemes, the size of
the fund kept to be constant. SEBI regulations stipulate that at least one of the two exit routes is
provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These
mutual funds schemes disclose NAV generally on weekly basis.
C. Interval schemes:
Interval Schemes combine the features of both open-ended and close-ended schemes. They are open
for sale or redemption during pre-determined intervals at NAV based prices.
# BY INVESTMENT OBJECTIVE
The aim of growth funds is to provide capital appreciation over the medium to long term. Such
schemes normally invest a major part of their corpus in equities. Such funds have comparatively high
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risks. These schemes provide different options to the investors like dividend option; capital
appreciation etc. and the investors may choose an option depending on their preference. The investor
must indicate the option in the application form. The mutual funds also allow the investors to change
the options at a later date. Growth schemes are good for investors having a long-term outlook seeking
appreciation over a period of time.
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, government securities and
money market instruments. Such funds are less risky compared to equity schemes. These funds are not
affected because of fluctuations in equity market. However, opportunities of capital appreciation are
also limited in such funds. The NAV’s of such funds are affected because of change in interest rates in
the country. If the interest rates fall, NAV’s of such funds are likely to increase in the short run and
vice versa. However, long-term investors may not bother about these fluctuations.
Balanced Fund:
The aim of balanced funds is to provide both growth and regular income as such schemes invest both
in equities and fixed income securities in the proportion indicated in their offer documents. These are
appropriate for investors looking for moderate growth. They generally invest 40-60% in equities and
debt instruments. These funds are also affected because of fluctuations in share prices in the stock
markets. However, NAV’s of such funds are likely to be less volatile compared to pure equity funds.
These funds are also income funds and their aim is to provide easy liquidity, preservation of capital
and moderate income. These schemes invest exclusively in safer short-term instruments such as
treasury bills, certificates of deposit, commercial paper and inter-bank call money, government
securities etc. Returns in these schemes fluctuate much less compared to other funds. These funds are
appropriate for corporate and individual investors as a means to park their surplus funds for short
periods.
Gilt Funds:
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These funds invest exclusively in government securities. Government securities have no default risk.
NAV’s of these schemes also fluctuate due to change in interest rates and other economic factors as
are the case with income or debt oriented schemes.
Index Schemes:
Index funds replicate the portfolio of a particular index such as the BSE Sensex, S&P NSE 50 index
(Nifty) etc. These schemes invest in the securities in the same weight age comprising of an index.
NAV’s of such schemes would rise or fall in accordance with the rise or fall in the Index, though not
exactly by the same percentage due to some factors known as “tracking error” in technical terms.
Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. These
are also exchange traded index funds launched by the mutual funds, which are traded in the stock
exchanges.
# OTHER SCHEMES
A. Tax Saving (ELSS) Schemes:
All the mutual funds floated by public sector banks and insurance companies have launched tax saving
schemes. These schemes are designed on the basis of tax policy with special tax incentives to tax
taxpaying investors. These schemes offer tax rebates to the investors under specific provisions of the
Income Tax Act, 1961 as the government offers tax incentives for investment in specified avenues.
E.g. Equity Linked Savings Schemes (ELSS). Pension Schemes launched by the mutual funds also
offer tax benefits. These schemes are growth oriented and invest predominantly in equities. Their
growth opportunities and risks associated are like any equity-oriented scheme.
These are the schemes, which invest in the securities of only those sectors or industries as specified in
the offer documents. E.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Power
or Infrastructure etc. The return sin these funds are dependent in the performance of the respective
sector/ industries. While these funds may give higher returns, they are more risky compared to
diversified funds. Investors need to keep a watch in the performance of those sectors/industries and
must exit at an appropriate time. They may also seek advice of an expert.
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Professional Management:
Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated
investment research team that analyses the performance and prospects of companies and selects
suitable investments to achieve the objectives of the scheme.
(2) Diversification:
Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors.
This diversification reduces the risk because seldom do all stocks decline at the same time and in the
same proportion. You achieve this diversification through a Mutual Fund with far less money than you
can do on your own.
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Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest
in a diversified basket of selected securities.
Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital
markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs
for investors.
(6) Liquidity:
In Open-End schemes, the investor gets the money back promptly at net asset value related prices from
the mutual fund. In Close-Ended schemes, the units can be sold on a Stock Exchange at the prevailing
market price or the investor can avail of the facility of direct repurchase at NAV related prices by the
mutual fund.
(7) Transparency:
Investors get regular information on the value of their investment in addition to disclosure on the
specific investments made by their scheme, the proportion invested in each class of assets and the fund
manager's investment strategy and outlook.
(8) 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.
(9) 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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Mutual funds are a victim of their own success. When a large body like a fund invests in shares, the
concentrated buying or selling in adverse price movements lay at the time of buying, the fund ends up
paying a higher price and while selling it realize a lower price. This problem is especially severe in
emerging markets like India, where, excluding a few stocks, even the stocks in the Sensex are not
liquid. Let alone stocks in the NSE 50 or the CRISIL 500. So there is simply no way that a fund can
beat the Sensex or any other index, if it is blindly invests in the same stocks as those in the Sensex and
in the same proportion.
The costs of the fund management process are deducted from the fund. This includes marketing and
initial costs deducted at the time of entry itself, called, ‘Load’. Then there is the annual asset
management fee and expenses, together called the expense ratio. Usually, the former is not counted
while measuring performance, while the latter is. A Standard 2 percent expense ratio means that,
everything else being equal, the fund manager under performs the benchmark index by an equal
amount.
The portfolio of a fund does not remain constant. The extent to which the portfolio changes is a
function of the style of the individual fund manager i.e. whether he is a buy and hold type of manager
or one who aggressively churns the fund. It is also depends on the volatility of the fund size i.e.
whether the fund constantly receives fresh subscriptions and redemptions. Such portfolios changes
have associated costs of brokerage, custody fees, registration fees etc. that lowers the portfolio return
commensurately.
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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.
(5) 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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The most important relationship to understand is the risk-return trade-off. Higher the risk greater the
returns/loss and lower the risk lesser the returns/loss. Hence it is up to you, the investor to decide how
much risk you are willing to take. In order to do this you must first be aware of the different types of
risks involved with your investment decision.
Market Risk:
Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting the
market in general lead to this. This is true, may it be big corporations or smaller mid-sized companies.
This is known as Market Risk. A Systematic Investment Plan (“SIP”) that works on the concept of
Rupee Cost Averaging (“RCA”) might help mitigate this risk.
Credit Risk:
The debt servicing ability (may it be interest payments or repayment of principal) of a company
through its cash flows determines the Credit Risk faced by you. This credit risk is measured by
independent rating agencies like CRISIL who rate companies and their paper. An ‘AAA’ rating is
considered the safest whereas a ‘D’ rating is considered poor credit quality. A well-diversified
portfolio might help mitigate this risk.
Inflation Risk:
The root cause is Inflation. Inflation is the loss of purchasing power over time. A lot of times people
make conservative investment decisions to protect their capital but end up with a sum of money that
can buy less than what the principal could at the time of the investment. This happens when inflation
grows faster than the return on your investment. A well-diversified portfolio with some investment
might help mitigate this risk.
Interest rate risk:
In a free market economy interest rates are difficult if not impossible to predict. Changes in interest
rates affect the prices of bonds as well as equities. If interest rates raise the prices of bonds fall and
vice versa. Equity might be negatively affected as well in a rising interest rate environment. A well-
diversified portfolio might help mitigate this risk.
Political/Government policy risk:
Changes in government policy and political decision can change the investment environment. They
can create a favorable environment for investment or vice versa.
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Liquidity risk:
Liquidity risk arises when it becomes difficult to sell the securities that one has purchased. Liquidity
Risk can be partly mitigated by diversification, staggering of maturities as well as internal risk controls
that lean towards purchase of liquid securities
# Sponsors:
The Sponsors initiate the idea to set up a mutual fund. It could be a registered company, scheduled
bank or financial institution.
A Sponsor is the Promoter of the Mutual Fund which cerates AMC and appoints trustees. There are
some criterions, which every sponsor have to fulfill:
Financial Services Business:
5- years Track record
3 years profit making record
At least 40% contribution to AMC capital
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# Trustees:
Trustees hold a fiduciary responsibility towards unit holders by protecting their interests. Trustees
float and market schemes and secure necessary approvals. Trustees are appointed by sponsor with
SEBI approval. A trust has registered ownership of investments and appoints all other constituents.
They check if the AMC’s investments are within well defined limits, whether the fund’s assets are
protected and also ensure that unit hold get their due returns.
An AMC is responsible for operational aspects of the mutual fund. Basically, they are manufacturers
of mutual fund schemes. They have an investment management agreement with trustees, which are
registered with SEBI. Its net worth should be maintained Rs.10 crore at all times. An AMC cannot
have any other Business interest and they have a mandatory duty of quarterly reporting to appointed
trustees.
# Other Constituents:
Custodian:
It takes custody of securities and other assets of mutual fund. Its responsibilities include receipt and
delivery of securities, collecting income-distributing dividends, safekeeping of the units and
segregating assets and settlements between schemes. Custodians can service more than one fund.
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Many investors possibly don’t know that considering returns alone, many mutual funds have
outperformed a host of other investment products. Mutual funds have historically delivered yields
averaging between 9% to 25% over a medium to long time frame. The duration is important because
like wise, mutual funds return taste bitter with the passage of time. Investors should be prepared to
lock in their investments preferably for 3 years in an income fund and 5 years in an equity funds.
Liquid funds of course, generate returns even in a short term.
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11
86 100
EQUITY/M.F.
POST OFFICE
F.D.
OTHERS
94
From the above charts we can interpret that awareness of equity/mutual fund, post office (NSC, KVP,
and PPF), fixed deposits is more compare to others like GOVT ISSUED Instrument, GOVT Backed
Instrument, Real Estate, gold etc. so HDFC assets Management Company needs to focus more on
those investors who are more invest in KVP, NSC, PPF and fixed deposits.
1
20
9
7
1
00
8
0
6
0 S
erie
s1
4
0
2
0
3
0
Y
ES N
O
P
REF
ERN
CE
Interpretation: -
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From the above chart it is getting clear that now a days people are like to invest their money in mutual
fund of different assets management company, out of 100 people sampled 97 are investing in the
mutual fund.
R ESPON SE
10 0
86
80
NO OF PEOPLE
60
R E SP ON SE
40 27
20
6
0
EQU ITY D EBT LIQU ID
S CHEM ES
YES NO TOTAL
56 44 100
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Awareness of Mutual Fund in retail investors of HDFC-AMC
60 56
50 44
NO OF PEOPLE
40
30 Series1
20
10
0
YES NO
PREFERNCE
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.
NO. OF
SCHEMES OF HDFC INVESTOERS
EQUITY FUND 43
CAPITAL BUILDER FUND 2
PRUDENCE FUND 17
TAX SAVER FUND 35
CORE AND SATELITE FUND 3
TOP 200 FUND 16
BALANCED FUND 1
GROWTH FUND 16
OTHERS FUND 5
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Awareness of Mutual Fund in retail investors of HDFC-AMC
NO OF INVESTOERS
16 5
1 43
16
3 2
35 17
Interpretation: -
From the above chart we can see that in HDFC assets Management Company’s EQUITY FUND
maximum number (43) of people are invest. In TAX SAVER FUND 35 number of people invests. In
both TOP 200 FUND and GROWTH FUND 16 numbers of people are invests but in BALANCED
FUND, CAPITAL BUILDER FUND, CORE AND SATELITE FUND only 1,2 and 3 people are
invest so investors are not invested in these 3 schemes. In PRUDENCE FUND 17 numbers of people
are invested.
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Awareness of Mutual Fund in retail investors of HDFC-AMC
NOOFP
EOP
LE
48
50
45
40
35
30
25
20 NOOFP
EOP
LE
15
10 8
5 0
0
DIS
TRIB
U T
O R O
NLINE
M
EDIU
M S
(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 with out any middle man in
mutual fund schemes through online.
Note: - here out of 100 respondents, 44 respondents are not invest in HDFC assets Management
Company. These responds are not considered in these questions.
1 EXCELLENT
44 43 CUSTOMER
SERVICE
PROVIDER
CONSISTANT
15
RETURN
OTHERS
Interpretation: -
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Awareness of Mutual Fund in retail investors of HDFC-AMC
From the above pie - chart it can be seen that majority of the people that is 44 peoples give first rank to
consistent return and 43 peoples invest in HDFC assets management company because HDFC assets
management company is a better fund house and 15 peoples believes that HDFC assets Management
Company provides EXCELLENT CUSTOMER SERVICE.
8. In which type of product /schemes would you prefer while Invested in equity
schemes of HDFC assets management Company limited?
TYPES OF SCHEMES RESPONSE
OPEN ENDED 53
CLOSE ENDED 3
RESPONSE
60 53
NO OF PEOPLE
50
40
30 RESPONSE
20
10 3
0
OPEN ENDED CLOSE ENDED
TYPES OF SCHEMES
Note: - Here out of 100 respondents, 44 respondents are not invest in HDFC assets Management
Company. These responds are not considered in these questions.
9. Do you know about on going new fund offer of HDFC Assets Management
Company limited?
AWARENESS OF NFO NUMBER PERCENTAGE
YES 58 58%
NO 42 42%
TOTAL 100 100%
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Awareness of Mutual Fund in retail investors of HDFC-AMC
NUMBER
42
YES
NO
58
(Define awareness level about on going NFO of HDFC Assets Management Company)
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.
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Awareness of Mutual Fund in retail investors of HDFC-AMC
Conclusion
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Awareness of Mutual Fund in retail investors of HDFC-AMC
Half of the respondents are investing in different schemes of mutual fund companies.
o The investors prefer investing more in banks and post office, which shows that investors
want security, and assured returns.
o Others than Banks and post office the next preference of investors who go for risky
preposition in shares and Mutual Funds. That is basically due to misconception that
Mutual Fund Companies usually invest in equity market, which shakes trust of people in
Mutual Fund.
Majority of investors invested in open-ended schemes.
o The awareness level about HDFC assets Management Company is moderate but still the
awareness should be created because 44% peoples still not invest in HDFC assets
Management Company.
o As the investor prefers safe investment and want consistent return, they invest in debt
schemes (22.69%).
o The investors prefer HDFC assets Management Company more because of the tax benefit
and consistent return.
o Mutual funds are also preferred because of the cost effectiveness and higher income by
investing in equity schemes.
The banks mostly make the investments through the agent’s followed.
o Professional and Business class, which is considered to be the most knowledgeable class
of the region prefers Mutual Funds less compare to service class.
o The time frame of the investment by majority of the investors is open-ended schemes in
which their money is not locked for 3 to 5 years.
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Awareness of Mutual Fund in retail investors of HDFC-AMC
Annexure
Name: ________________________________________Contact No:_________________________
THANK YOU
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Awareness of Mutual Fund in retail investors of HDFC-AMC
BIBLIOGRAPHY
Books
• Cooper and Schindler , Research Methodology New Delhi Tata McGraw-Hill Ltd 2001
Websites
www.hdfcfund.com
www.amfiindia.com
www.valuereserchonline.com
www.moneycontrol.com
www.timesofindia.com
www.rbi.com
Literature
• literature of HDFC-AMC
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Awareness of Mutual Fund in retail investors of HDFC-AMC
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Awareness of Mutual Fund in retail investors of HDFC-AMC
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