Вы находитесь на странице: 1из 60

A PROJECT REPORT

ON

“ Financial Markets”

WITH SPECIAL REFERENCE TO

REPORT ON “ Financial Markets” WITH SPECIAL REFERENCE TO LATUR SUBMITTED TO S.R.T.M.U.NANDED SUBMITTED BY DNYANESHWAR

LATUR SUBMITTED TO

S.R.T.M.U.NANDED

SUBMITTED BY

DNYANESHWAR H. YERME M.B.A.(FINANCE)

GUIDED BY

H.S.PATIL

BY DNYANESHWAR H. YERME M.B.A.(FINANCE) GUIDED BY H.S.PATIL SWAMI RAMANAND TIRTH MARATHAWADA UNIVERSITY, NANDED

SWAMI RAMANAND TIRTH MARATHAWADA UNIVERSITY, NANDED SUB-CENTRE LATUR

(2011-2012)

SWAMI RAMANAND TEERTH MARATHWADA UNIVERSITY, NANDED. SCHOOL OF MANAGEMENT SUB-CENTRE, LATUR. This is to certify

SWAMI RAMANAND TEERTH MARATHWADA UNIVERSITY, NANDED.

SCHOOL OF MANAGEMENT

SUB-CENTRE, LATUR.

UNIVERSITY, NANDED. SCHOOL OF MANAGEMENT SUB-CENTRE, LATUR. This is to certify that CERTIFICATE MR.DNYANESHWAR H. YERME

This is to certify that

CERTIFICATE

MR.DNYANESHWAR H. YERME

of SRTMUN, Sub-centre school of management has successfully

completed the project work titled

“FINANCIAL MARKETS”

In partial fulfillment of requirement for the award of (MASTER OF BUSINESS ADMINISTRATION) prescribed by the SWAMI RAMANAND TEERTH MARATHWADA UNIVERSITY, NANDED.

This project is the record of authentic work carried out during the academic year (2011-2012)

H.S.PATIL

Dr. D.MISHRA

Project Guide

Director

DECLARATION

I here by declare that the thesis entitle “FINANCIAL MARKETS” completed

And written by me has not previously formed the basis for the award of any degree or diploma or other similar title of this or any other University or examining body.

INDEX

Sr. No.

Topics

Pg. No.

Chap. 1

Introduction and Research Methodology

 

1.1

Introduction to Topic

 

1.2

Importance of the Study

 

1.3

Statement of the problem

 

1.4

Objective of the Study

 

1.5

Methodology adopted – Universe Sampling etc

 

1.6

Tools of Data Collection

 

1.7

Scope of the Study

 

1.8

Limitations of the Study

 

Chap. 2

Theoretical Frame Work

 

Chap. 3

Organization profile

 

3.1

History of the organization

 

3.2

Vision & Mission

 

3.3

Other information about the bank

 

Chap.4

Data Presentation, Analysis & Interpretation

 

Chap.5

Findings , Suggestion and Conclusion

 
 

Questionnaire

 
 

Bibliography

 

Introduction

HDFC Standard Life, one of India's leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India's leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom.

HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others.

HDFC Standard Life's product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 32 retail and 4 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers.

HDFC Standard Life continues to have one of the widest reaches among new insurance companies with 568 branches servicing customer needs in over 700 cities and towns. The company has a strong presence in its existing markets with a base of 2,00,000 Financial Consultants.

Research Methodology

Tools of data collection and sampling procedure

Research approach

For collecting the information on the given topic a survey work was carried out in the Latur City for collecting vital information on important areas.

Sampling Methods

Here the researcher adopted the survey method for this analytical study. A schedule was used to collect information through personal interviews from the current customers, general public. A structured questionnaire is used for the collection of primary data.

Sample Size

The sample size included 100 people from various walks of life.

Division of Data

There are mainly two types by which data could be collected, namely:

1. Primary Data

2. Secondary Data

1. Primary Data

This data which is collected in fresh and for the first time and thus original in character. The data, which Researcher collected, is from the people in various walks of life. It collected with help of well-structured questionnaire along with formal interview and informal interview. Planning of the questionnaire is explained in the next topic separately.

2. Secondary Data

This data on the other hand is that which is not collected in fresh. It has been collected from the company records and internal documentation. It collected through inner sources of the firm so it is further distinguished as Internal Secondary data. Secondary data was collected from the following sources.

Internal Marketing Bulletin i.e. infocom magazine

Communication files maintained by the Dealers

Marketing Guide for the executives

Data Analysis:

i) Data from the questionnaire

The answer given by the respondent was checked properly and table that consisted of the percentage % of different answer to each question was made the complaints and suggestions were recorded.

ii) Data from formal Interview The data obtained mainly consisted of opinion and suggestion, so it is

subjected to comparison and the reason behind it was found out.

iii) Data from informal Interview The Data is also collected from the experts from the informal interview.

The experts consist of all lead managers of various companies.

THEROTICAL FRAME WORK

ORGANISATION PROFILE

HDFC STANDARD LIFE

The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…”

In 1994, the committee submitted the report and some of the key recommendations included: i) Structure

Government stake in the insurance Companies to be brought down to 50%

Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate

ii) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry.

No Company should deal in both Life and General Insurance through a single entity.

Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

Postal Life Insurance should be allowed to operate in the rural market.

Only one State Level Life Insurance Company should be allowed to operate in each state

iii) Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up

Controller of Insurance (Currently a part from the Finance Ministry) should be made independent

iv) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from75% to 50%

GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time)

v) Customer Service

LIC should pay interest on delays in payments beyond 30 days

Insurance companies must be encouraged to set up unit linked pension plans

Computerization of operations and updating of technology to be carried out in the Insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could run the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crore. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting upon independent regulatory body.

The Insurance Regulatory and Development Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are

expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

Punch line: -

“With You, Right Through; painting your world with safety and security”.

History of Organization

HDFC Bank began operations in 1995 with a simple mission: to be a

"World-class Indian Bank".

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve Bank of

India (RBI) to set up a bank in the private sector, as part of the RBI's

liberalization of the Indian Banking Industry in 1994. The bank was

incorporated in August 1994 in the name of 'HDFC Bank Limited', with its

registered office in Mumbai, India. HDFC Bank commenced operations as a

Scheduled Commercial Bank in January 1995.

HDFC Bank Limited, a private sector bank, provides financial services to

corporations, and middle and upper-income individuals in India. It has three

divisions: Wholesale Banking, Retail Banking, and Treasury Operations. The

Wholesale Banking division provides loans, deposit products, documentary

credits, guarantees, bullion trading, and foreign exchange and derivative

products. It also offers cash management services, clearing and settlement services for stock exchanges, tax and other collections for the government, custody services for mutual funds, and correspondent banking services. The

Retail banking division provides various deposit products, as well as loans, bill payment services, gold and silver credit cards, debit cards, third party distribution, investment advisory services, card and automated teller machine (ATM) acquiring transactions, and depositary services. The Treasury Operations division offers foreign exchange and derivative products for its clients. In addition, the bank provides telephone, Internet, and mobile telephone banking services. As of March 31, 2005, it operated 467 branches and 1,147 ATMs in 211 cities. The company was incorporated in 1994 and is headquartered in Mumbai, India.

BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 531 branches spread over 228 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion

plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base. The Bank also has a network of about over 1054 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accesed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders

Location of the HDFC

and American Express Credit/Charge cardholders Location of the HDFC Associated Companies : - HDFC Mutual Funds.

Associated Companies: -

HDFC Mutual Funds.

HDFC Standard Life Insurance Company.

HDFC Security.

HDFC Reality.

HDFC Chubb General Insurance Company Ltd.

HDFC Internet global Service Ltd.

HDFC Credit Information India Ltd.

Organization & Management

Board of Directors

Chairman

Mr. Deepak S. Parekh is the Chairman of the Company. He is also the

Executive Chairman of Housing Development Finance Corporation Limited (HDFC

Limited). He joined HDFC Limited in a senior management position in 1978. He was

inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its

Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited.

Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).

Directors

§ Mr. K. M. Mistry joined the Board of Directors of the Company in December,

2000. He is currently the Managing Director of HDFC Limited. He joined

HDFC Limited in 1981 and became an Executive Director in 1993. He was

appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow

of the Institute of Chartered Accountants of India and a member of the Michigan

Association of Certified Public Accountants

12

§ Mr. Alexander M Crombie joined the Board of Directors of the Company in

April, 2002. He has been with the Standard Life Group for 34 years holding

various senior management positions. He was appointed as the Group Chief

Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow

of the Faculty of Actuaries in Scotland.

§ Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate

in law and holds a Master's degree in economics from Delhi University. She has

been employed with HDFC Limited since 1978 and was appointed as the

Executive Director in 2000. She is responsible for overseeing all aspects of

lending operations of HDFC Limited.

§ Ms. Marcia D. Campbel is currently the Group Operations Director in the

Standard Life group and is responsible for Group Operations, Asia Pacific

Development, Strategy & Planning, Corporate Responsibility and Shared

Services Centre. Ms. Campbell joined the Board of Directors in November

2005.

§ Mr. Norman Keith Skeoch is currently the Chief Executive in Standard Life

Investments Limited and is responsible for overseeing Investment Process &

Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with

M/s. James Capel & Co. holding the positions of UK Economist, Chief

Economist, Executive Director, Director of Controls and Strategy HSBS

Securities and Managing Director International Equities. He was also

responsible for Economic and Investment Strategy research produced on a

worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.

§

Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow

of

the Institute of Chartered Accountants of India. Mr. Divan was the Former

Chairman and Managing Committee Member of Midsnell Group International,

an International Association of Independent Accounting Firms and has authored

several papers of professional interest. Mr. Divan has wide experience in

auditing accounts of large public limited companies and nationalized banks,

financial and taxation planning of individuals and limited companies and also

has substantial experience in structuring overseas investments to and from India.

13

§

Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards

on

Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-

President at Bain & Company, Inc., Boston, where he led the worldwide Utility

Practice. He was also Director, Corporate Business Development at General

Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The

Wharton School and BE (Honors) from Birla Institute of Technology and

Sciences.

§ Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange

of India Limited. Mr. Ravi Narain was a member of the core team to set-up the

Securities & Exchange Board of India (SEBI) and is also associated with

various committees of SEBI and the Reserve Bank of India (RBI).

Managing Director and CEO

Mr. D. M. Satwalekar is the Managing Director and CEO of the Company

since November, 2000. Prior to this, he was the Managing Director of HDFC

Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology

from the Indian Institute of Technology, Bombay and a Masters Degree in Business

Administration from The American University, Washington DC.

Organizational Chart of the HDFC: -

Board of Directors

Board of Directors

Board of Directors
Board of Directors
Organizational Chart of the HDFC: - Board of Directors Chairman Executive Director Managing Director Senior General

Chairman

Executive Director

Executive Director

the HDFC: - Board of Directors Chairman Executive Director Managing Director Senior General Manager General Manager
Managing Director

Managing Director

Managing Director
Managing Director
of Directors Chairman Executive Director Managing Director Senior General Manager General Manager Deputy General Manager
Senior General Manager

Senior General Manager

Senior General Manager
Senior General Manager
of Directors Chairman Executive Director Managing Director Senior General Manager General Manager Deputy General Manager
General Manager

General Manager

General Manager
General Manager
of Directors Chairman Executive Director Managing Director Senior General Manager General Manager Deputy General Manager

Deputy General Manager

Awards and Accolades: -

s

HDFC ranked No. 3 “India’s Best Managed Companies” by finance Asia.

The Economic Times Lifetime Achievement Award - 2003. (For Mr. Deepak Parekh - Chairman, HDFC Ltd.)

One of the Top Ten Most Admired Companies in India ' - 2003 by Business Barons

‘Retail Banking Risk Management Award in India’ - 2004 by the Asian Banker Excellence.

Economic Times Awards "Company of the Year" Award for Corporate Excellence 2004-05.

Asia money Awards ‘Best Domestic Commercial Bank Best Cash Management Bank ‘- India 2005.

Our Vision & Values

‘The most successful and admired life insurance company, which

means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the

industry’.

‘The most obvious choice for all’.

Our Values

Values that we observe while we work:

• Integrity

• Innovation

• Customer centric

• People Care “One for all and all for one”

• Team work

• Joy and Simplicity

HDFC Future Plans

HDFC has always been market-oriented and dynamic with respect to resource mobilization as well as its lending Programmer. This renders it more than capable to meet the new challenges that has emerged

HDFC has developed a vast client base of Borrowers, depositors, shareholders and agents, and it hopes to capitalize on this loyal and satisfied client base for future growth.

Internal systems have been developed to be robust and agile, to take into account changes in the Volatile external environment.

HDFC has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialized financial services. Each institution is being fine-tuned for a specific market, while offering the entire HDFC customer base the highest standards of quality in product design, facilities and service.

Following are the Life insurance plans offered by HDFC Life Insurance Company Ltd.

1.Protection Plans

by HDFC Life Insurance Company Ltd. 1.Protection Plans Protection Plans ensures your family’s financial

Protection Plans ensures your family’s financial independence in the event of your unfortunate demise or critical illness.

Protection Plan - Currently available products to purchase

Following are the Protection Plans offered by HDFC Life Insurance

a. HDFC Term Assurance Plan : The Plan is designed to secure your family

from any kind of financial uncertainties. It provides you high cover at nominal cost, flexibility to choose the sum assured an additional benefit options can be availed at marginal cost and gives you the option of paying single premium or regular premium.

b. HDFC Premium Guarantee Plan: It is an insurance plan that comes with

double advantage of protection and return of premiums* on maturity. So, you can enjoy life meaningful that your family’s financial independence is secure

even in your absence. And your premiums are yours on your survival at maturity.

c. HDFC Loan Cover Term Assurance Plan : It protects your family form

your loan liabilities in case of your demise within the policy term, a lump sum amount is provided which is a decreasing percentage of the initial Sum Assured.

c. HDFC Home Loan Protection Plan : The plan protects your family from

your loan liabilities in case of your unfortunate demise within the policy term. In case if you are not there to repay the monthly installment on your housing loan, then a sum of money is available towards repaying your housing loan.

2.Children’s Plans

on your housing loan, then a sum of money is available towards repaying your housing loan.

The children plan helps you to fulfill your child’s dreams. The plan secures your child’s future financially even though you are not around them.

a. HDFC Children's Plan- The plan ensures that you can start building your

savings today to give a bright future to your child. A the time of maturity a guaranteed lump sum is given to the beneficiary or in case of your unfortunate

demise, early into the policy term.

b. HDFC Unit Linked Young Star II- The plan provides a valuable protection

to your child in case you are not there to support them. The unit linked plan also

gives you an outstanding investment opportunity to maximize your savings by providing you a choice of thoroughly researched & selected investments.

c. HDFC SL YoungStar Super Premium - This plan offers you choice of

cover options and benefit payment preferences- all designed to suit your needs.

Children Plan - Old products not available for fresh purchase

a.HDFC Unit Linked Young Star II- The plan provides a valuable protection to your child in case you are not there to support them. The unit linked plan also gives you an outstanding investment opportunity to maximize your savings by providing you a choice of thoroughly researched & selected investments.

b. HDFC Unit Linked Young Star Plus II- The plan provides a valuable

protection to your child in case you are not there to support them. The unit linked plan also gives you an outstanding investment opportunity to maximize your savings by providing you a choice of thoroughly researched & selected

investments. Along with that a regular Loyalty Units are also provided to improve your fund value every year.

d. HDFC Unit Linked Young Star Champion- The plan provides a valuable

protection to your child in case you are not there to support them. The unit linked plan also gives you an outstanding investment opportunity to maximize

your savings by providing you a choice of thoroughly researched & selected investments. Along with that the plan also provides Bumper Addition to the funds at the time of maturity.

3.

Retirement plan

3. Retirement plan The Retirement Plans of HDFC Life Insurance ensure you to provide a secure

The Retirement Plans of HDFC Life Insurance ensure you to provide a secure life after your retirement. It provides you with financial security in life & you don’t need to comprise with your life. The plan gives you a lump sum on retirement, which helps you to get a regular income through an annuity plan.

Retirement Plans - Currently available products to purchase

a. HDFC Personal Pension Plan- A plan that gives you a post retirement

income for life. You can choose the premium, sum assured and your retirement date too.

b. HDFC Immediate Annuity- It is a contract that uses your capital to provide

you with a guaranteed gross income through out your life. The income is guaranteed & is unaffected by rise or fall of interest rates.

Retirement Plans - Old products not available for fresh purchase

a. HDFC Unit Linked Pension II- A unit linked insurance plan that gives you an outstanding investment opportunity to maximize your saving. It also gives you Bumper Addition.

b. HDFC Unit Linked Pension Maximiser II- It’s a unique single premium unit linked plan, designed to provide a post retirement income with maximum investment returns. The plan also gives Bumper Addition of 10% of initial single premium at vesting & on death.

4.Saving & Investment:

at vesting & on death. 4.Saving & Investment: The saving & investment plan gives you dual

The saving & investment plan gives you dual benefit of protection & long term savings. Along with that an assured sum for your future need.

Saving & Investment Plans - Currently available products to purchase

a.HDFC SL Crest It is insurance cum investment plan that provides valuable financial protection to your family when needed the most along with an investment option for certainty of highest NAV along with a guarantee on returns.

b.HDFC SL ProGrowth Super II It is savings-cum-insurance plan that will help you naturally provide the best for your family, be it today or tomorrow.

c.HDFC SL ProGrowth Maximiser - This plan strives to maximize your returns so that ensuring the best for your loved ones is easy.

d. HDFC Endowment Assurance Plan- The plan will give your family a

guaranteed lump sum on maturity or in case of your unfortunate demise.

e. HDFC Money Back Plan- The plan gives you proportion of the basis Sum Assured as cash lump sums after every 5 years.

f. HDFC Single Premium Whole of Life Insurance Plan- A single premium investment plan which provides long-term real growth of your money.

g. HDFC Assurance Plan- A long term saving plan that will secure the life of

your family too.

h. HDFC Savings Assurance Plan- A plan which comes 'With Profits' savings

plan which helps you easily build your long-term savings and ensure that your family is protected even if you are not around.

Saving & Investment Plans - Old products not available for fresh purchase

a. HDFC Unit Linked Endowment Plus II- With this plan you start saving

today so that your family remains financially independent, even when you are

not around. The plan gives you Loyalty Units to boost your fund value.

b. HDFC SimpliLife- The HDFC SimpliLife Plan gives you the opportunity to

maximize your savings & secure your family’s future.

benefits like Life option, extra life option, life & health option & extra life & health option.

d. HDFC Unit Linked Enhanced Life Protection II- Under this plan the sum

assured chosen by you will automatically increased by 5% each year.

e. HDFC Unit Linked Wealth Maximiser Plus - It’s a unique single premium

investment cum protection plan, which gives you Loyalty Units to enhance your fund value every year.

f. HDFC Unit Linked Endowment Winner- The plan gives you the choice of thoroughly researched & select the investments. It comes with Bumper Addition to the fund value at maturity.

Health Plan - Currently available products to purchase

5.Health Plan

Health plans give you the financial safety to get together health related contingencies. Due to

Health plans give you the financial safety to get together health related contingencies. Due to changing lifestyles, health issues have acquired completely new dimension overtime, becoming more complex in nature. It becomes imperative then to have a health plan in place, which will ensure that no substance how critical your illness is, it does not impact your financial independence.

a. HDFC Critical Care Plan – Its provides for a lump sum payment on

survival post diagnosis of a critical illness, so that in the event a critical illness

strikes, you don’t have to dig into those precious savings of yours.

b. HDFC SurgiCare Plan Its provides you with timely support in case you

have to undergo a major surgery and hospitalization, as the case maybe, ensuring your financial independence at all times.

FINANCIAL MARKET

On times of financial tsunamis and uncertainty, Aditya Puri is the just the type of banker you can trust with your hard earned money. Even when Indian banks were caught between the Head winds of a global financial crisis and a slowing domestic economy, he made sure HDFC grew steadily while maintaining margins. In the end the bank emerged from the slowdown as the youngest company to reach a market capitalisation of Rs 1.00,000 crore, after Bharti. In a short span of 16years, Puri has not only created a world class bank but also brought modern banking to the Indian middle class.

How do you manage growth profitably?

With under-penetrated financial markets and GDP growing somewhere between 7 and 9%, it is clear that demand is not the issue in India. When demand is not the issue why should you compromise on pricing service levels or brand image?

We wanted to grow at a rate at which we could maintain the credibility of the brand and what we stand for.

How do you feel on being the second youngest company to cross Rs one lakh crore in market capitalisation?

I don't think about market capitalisation. But we were very clear from the day we started the bank that in all businesses that we participate we will, over a reasonable period of time, either be the major players or we will exit the business. So growth has been better than what we thought because the country did better. But we were very dear that we would be a large bank, just like we are very clear that we will soon be an even larger bank since our growth rate, on a larger base, has not slowed down. We do not see it slowing down for the next five years.

Do we need consolidation in the banking industry?

The answer is yes, for multiple reasons. If the relationship of the customer is split among five banks then it is not the most profitable for the bank itself. The transaction cost goes up, the cost of managing the customer goes up. If you have scale, you can also go overseas. But does a bank necessarily have to go overseas? Is Bank of America a glob-al bank, with 95% of its business is in the US? They have gone global to the extent that they are able to service American corporations which have gone global and meet their needs. Do we plan to be a major consumer bank in the United States of America? No. However, since Indian corporates are going there, we can set up an operation to meet their needs.

On the banking sector s responsibility for more financial inclusion:

The time available for financial inclusion is limited, so it is important that every constituent that can have financial inclusion, come together at the same time so that we make sure that we eliminate poverty and the major disparities in the shortest possible time. Together we can do a much better job. If the government also helps it in terms of ensuring that subsidies go to the right people or lending against subsidies, you can do in five years what will normally take ten years.

Should bankers have been more prudent?

You must understand that there are two parts to a bank's balance sheet, one is lending and the other is depositing. You call it prudence, but I say it is my obligation to my depositors to make sure that 1 am prudent in the lending so that the viability of the bank is always maintained and they can ; leap peacefully at night.

Did the slowdown change your thinking in some way ?

It was a great opportunity. The globe has to re-balance but it will take ime. We must have our strategies clear for that re-balancing and make sure we are well positioned. We should have greater dealings with China, the fareast and the middle east.

How can we ensure India-Bharat growth parity.'

Bharat is one of the biggest opportunities available in the globe today. You have 400 to 500 million people that are going to go up the affluence ladder. Commodity prices have improved which will help the agree community, per capita income is about to change, and there is largely unorganised finance there. To me, Bharat is the biggest opportunity.

What does power mean to you?

It means nothing to me. When power starts meaning something to you, you lose your humility. Corporate Dossier - Economic Times Friday, 21 Jan 2011 Page# :2 Size :

389.07 sq.c

Mr.Aditya Puri, HDFC BANK Business Leader Of The Year.

Introduction to Financial Markets

2011 Page# :2 Size : 389.07 sq.c Mr.Aditya Puri, HDFC BANK Business Leader Of The Year.

Financial System

The financial system of every economy consists of various constituents such as

1) Financial Institutions

2) Financial Companies

3) Financial Markets

4) Financial Instruments

5) Financial Services

6) Financial regulations

The financial market in India comprised of capital market and money market whereas the financial system of the country comprised of institutions, which operate the financial markets and the financial instruments with which the financial system is put into operation. Tax anomy of financial markets can be understood on functional, sectoral and institutional basis. On a functional basis we can divide financial markets into

1) Money market (short term) 2) Capital market (long term)

The institutional classification can be made into

1) Organized financial market 2) Non-Organized financial market

What is Capital Market?

A Capital Market deals in financial assets, excluding coins and currency. The financial assets comprise of banking accounts, pension funds, provident fund, mutual fund, insurance policy, shares, debentures, and other securities. If the stock exchanges are well regulated and function smoothly, then it is an indication of healthy capital market. Stock exchange provide a good leverage of the capital market and their relationship is directly proportional. India has multi-stock exchange system with 24 stock exchanges functioning across the country. In our country, capital markets are generally also known as security/stock market. The Indian capital

market currently provides excellent investment opportunities to domestic and foreign investors in both equity and fixed income Segments.12 The Indian Capital Markets can be broadly classified into three types of markets. 1) Money market 2) Primary market 3) Secondary market

1) Money market

market 2) Primary market 3) Secondary market 1) Money market The money market is part of

The money market is part of overall financial system and securities or capital market. It deals in short term financial assets which can be readily converted into cash. Money market is a place for trading in money and short tern financial assets that are as liquid as money. It provides a platform for short term surplus funds of lenders or investors and short term requirements of borrowers, the instruments can be traded at low cost and are highly liquid.

2) Primary market

Primary market is generally referred to the market of issues or market for new mobilization of resources by the companies and the government undertakings, for new projects as also for expansion, modernization, addition, and diversification and up gradation. Primary market operations include new issues of shares by new and existing companies, further and right issues to existing share holders, public offers, and issue of debt instruments such as debentures, bonds, etc. Raising money from capital market is cheap for the company and involves a low servicing cost. The investors’ benefit by way of dividend and or capital appreciation. The following are the market intermediaries associated with the primary market 1) Merchant banker/book building lead manager 2) Registrar and transfer agent 3) Underwriter/broker to the issue 4) Advisor to the issue 5) Banker to the issue 6) Depository 7) Depository participant

Defects in Indian Primary Market 1) Aggressive pricing and over pricing. 2) Price rigging before and during issues. 3) Poor, wrong and vague disclosures in offer documents. 4) Poor information accessibility. 5) Misleading projections subject to vague assumptions. 6) Delay in penal actions against the erring market intermediaries.

2) Secondary Market

The secondary market is the market where script are traded. It is a market place, which provides liquidity to the script issued in the primary market. Thus, the growth of secondary market is dependent upon primary market. More the number of companies entering the primary market, the greater is the volume at the secondary market. Trading activities in the secondary market are done through recognized stock 14 exchanges, which are 24 in number including Over the Counter Exchange of India, National Stock Exchange of India, and Inter- connected Stock Exchange of India.

Secondary market operations involves buying and selling of securities on the stock exchange through its members. The following intermediaries are involved in the secondary marker. 1) Broker/member of Stock Exchange- buyer broker and selling broker 2) Portfolio manager 3) Investment advisor 4) Share transfer agent 5) Depository 6) Depository participant

RISK

Whether it is driving, or just walking down the street, everyone exposes himself to risk. It is equally true in the case of investments. Your personality and lifestyle play a big role on how much risk you are comfortably able to take if you invest in stocks and have no trouble sleeping at nights because of your investments you are probably taking too much of risk. All investments are risky, whether in stock, capital market, banking, financial sector, real estate, bullion, gold etc.

The degree of risk however varies on the basis of the features of the assets, investments instrument, the mode of investment, time frame or the issuer of the security etc.

Risk can be defined as “Possibility of suffering losses” “The chance of something happening that will have an impact upon objectives. It is measured in terms of consequences and likelihood”. Investopedia has defined risk as “The chance that an investment’s actual return will be different than expected” this includes the possibility of losing some or all of the original investments. When considering any security, the investor is always concerned with the return expected on the investments and the risks of the investments, i.e. how likely it is that the return expected will be achieved.

There are two types of risks 1) Systematic Risks 2) Unsystematic Risks

1) Systematic Risks

The risks arising out of external and uncontrollable factors, arising out of the market, nature of industry, the state of the economy and a host of other factors. 38. This risk influences a large number of assets. It is virtually impossible to protect yourself against this type of risk. Example, Market Risk, Interest rate risk, Purchasing power risk etc

2) Unsystematic Risk

The risk emerging out of known and controllable factors, internal to the issuer of the securities or companies. This risk affects a very small number of assets. Sometimes referred to as “specific risks”. Example Business risk, financial risk, Insolvency risks etc.

Financial Risk

Financial risk means fear of loss of money, which is the biggest risk faced by a broking firm. Financial risk in respect of broking firm can be of two types firstly loss of income i.e. brokerage secondly loss of capital

Market Risk

The risk of loss arising from adverse market rate movements e.g. foreign exchange (transaction, translation, or economic) interest rates, commodity and equity prices are termed as market risk. Generally this risk occurs due to volatility in scrip’s, which can’t be controlled.

HDFC Short Term Plan

HDFC Short Term Plan Financial Market Reforms and Developments Reforms in the Capital Market ‘ HDFC’

Financial Market Reforms and Developments

Reforms in the Capital Market

HDFC’ was awarded the ‘Best Group over 3 Years’# in the ‘Overall Group Award’ Category (from amongst 13 fund groups) for the 3 year period ending December 31, 2009 at Lipper Fund Awards 2010 (India). The said award has been given for the Sponsor Companies i.e. Housing Development Finance Corporation Limited and Standard Life Investments Limited.

# Past Performance is no guarantee of future results. Award Methodology and Disclaimer for the award is annexed and forms part of the Trustee Report.

1) SCHEME PER FOR MANCE, FUTURE OUTLOO K AND OPER ATIONS OF THE SCHEMES SCHEME PERFORMANCE AND OPERATIONS OF THE SCHEME

HDFC Short Term Plan - An Open-ended Income Scheme The performance of HDFC Short Term Plan – Growth Option as at March 31, 2010 is presented below:

Period

Returns (%) ^

Benchmark

 

Returns(%)#

Last 1 Year (365 days)

7.58

5.88

Last 3 Years (1097 days)

10.36

8.14

Last 5 Years (1826 days)

8.49

6.78

Since Inception@ (3171 days)

7.53

N.A.

Past performance may or may not be sustained in the future. Above returns are compounded annualized (CAGR)

# Benchmark Index: CRISIL Short Term Bond Fund Index @ Date of Inception/Allotment: February 28, 2002

Face Value: Rs. 10 per unit N. A.: Not Available The Scheme has out performed its benchmark in FY 2009-10 as it was running

a higher maturity compared to the benchmark index. The Scheme has delivered

7.53% p.a. returns since inception. The Benchmark returns since inception are not available. To reflect more effectively the investment objective, investment strategy and portfolio mix of the Scheme, effective July 30, 2009, the Benchmark Index of the Scheme has been changed from Crisil Liquid Fund Index to Crisil Short Term Bond Fund Index. The net assets of the Scheme amounted to Rs. 2,400.79 crore as at March 31, 2010 as against Rs. 1,058.21 crore as at March 31, 2009. As at March 31, 2010, 106.41% of the net assets of the Scheme were invested in Debt & money market instruments (including Fixed Deposits) and – 6.41% in other current assets (including Reverse Repos / CBLO). Investment opportunities are assessed with regard to credit risk, interest rate risk and liquidity risk. Investments in bonds and debentures are usually made in instruments that have been assigned as “high investment grade” by a Credit Rating Agency registered with SEBI. Average maturity of the Scheme does not normally exceed 2 years.

FUTURE OUTLOOK

Equity Market Outlook

In the near term, global events are likely to take centre stage. Governments are looking at reigning in their fiscal deficits through various austerity measures. Savings rates, which had fallen over the years, will need to be raised. This could dampen growth prospect in the near term. A mild slowdown will put downward pressure on commodity prices and interest rates, which is positive from India’s perspective. As long as things don’t deteriorate significantly, the Indian economy should do well. On the domestic front, the level of economic activity has picked up. Inflation is

a source of concern and the government is seized of the problem and looking to

tackle it. With commodity prices easing and the base effect coming in, inflation is likely to temper. India is projected to be among the fastest growing economies in world where growth is becoming scarce. While the short term may see some volatility, impacted by transitory events that are very difficult to

foresee, the longer-term outlook remains positive.

With markets trading at close to its long-term average valuations, returns are likely to be driven more by earnings growth rather than by an expansion in valuations. For those investors with a tolerance for volatility and a long-term horizon, equities continue to offer superior prospects and the opportunity to build long-term wealth.

Debt Market Outlook

The global recovery is expected to continue to be aided by the massive monetary and fiscal support and a strong growth in Emerging Market Economies (EME). Inflation expectations in advanced countries remain stable, but have started rising in several EMEs. The Indian economy is firmly on the recovery path. The industrial sector recovery is increasingly becoming broad-based and is expected to continue to get better on the back of rising domestic and external demand. However, the inflationary pressures have increased in the recent period. The headline WPI inflation in expected to fall during the year, but fears are increasing that supply side driven inflation is getting more generalized. This may lead RBI to continue to tighten its monetary policy.

The fiscal deficit is expected to be significantly lower than last year at 5.5% of GDP in FY 2010-11, but the government’s net borrowing (adjusted for maturities, MSS desequestering and RBI OMO) is higher than last year. However, since April 2010, Government has benefited from the success of the spectrum auction, which resulted in an inflow of over Rs. 1.05 lac crores against budget estimates of Rs 35,000 crs.

This would enable better fiscal management in the current year. With the likely reduction in fiscal deficit, the long-term government bond yields are expected to head lower during FY11.

HOUSING DEVELOPMENT FINANCE COR POR ATION LIMITE D (HDFC)

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 11 lac borrowers, 10 lac depositors, over 1,23,000 shareholders and 25,000 deposit agents, as at March 31, 2010. As at March 31, 2010, HDFC has a total asset size of Rs. 1,11,763 crore and

cumulative approvals and disbursements of housing loans of Rs. 2,98,061 crore and Rs. 2,42,219 crore respectively.

3)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 fifteenth year in succession. HDFC Standard Life Insurance Company Limited, promoted by HDFC was the first life insurance company in the private sector to be granted a Certificate of Registration (on October 23, 2000) by the Insurance Regulatory and Development Authority to transact life insurance business in India. For more information log on to www.hdfc.com.

in India. For more information log on to www.hdfc.com. Market Crash STANDARD LIFE INVESTMENTS LIMITED Standard

Market Crash

STANDARD LIFE INVESTMENTS LIMITED Standard Life Investments was launched as an investment management company in 1998. It 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$ 221.2 billion as at March 31, 2010 Standard Life Investments Limited is one of the world’s major investment companies, operating in the UK, Canada, Hong Kong, China, Korea, Ireland and the USA, and is responsible for investing money on behalf of five million retail and institutional clients worldwide.

The Standard Life Assurance Company was established in 1825 and has considerable experience in global financial markets. The company was present in the Indian life insurance market from 1847 to 1938 when agencies were set up in Kolkata and Mumbai. The company re-entered the Indian market in 1995, when an agreement was signed with HDFC to launch an insurance joint venture. On April 2006, the Board of The Standard Life Assurance Company recommended that it should demutualise and Standard Life plc float on the London Stock Exchange. At a Special General Meeting held in May voting members overwhelmingly voted in favour of this. The Court of Session in Scotland approved this in June and Standard Life plc floated on the London Stock Exchange on 10 July 2006. In order to meet the different needs and risk profiles of its clients, Standard Life Investments Limited manages a diverse portfolio covering all of the major markets world-wide, which includes a range of private and public equities, government and company bonds, property investments and various derivative instruments. The company’s current holdings in UK equities account for approximately 1.8% of the market capitalisation of the London Stock Exchange. For more information log on to the website www.standardlifeinvestments.com

b. HDFC MUTUAL FUND

HDFC Mutual Fund (the “Fund”) has been constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882, as per the terms of the trust deed dated June 8, 2000 with Housing Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited as the Sponsors / Settlors and HDFC Trustee Company Limited, as the Trustee. The Trust Deed has been registered under the Indian Registration Act, 1908. The Trustee has entered into an Investment Management Agreement dated June 8, 2000

with HDFC Asset Management Company Ltd. to function as the Investment Manager for all the Schemes of HDFC Mutual Fund. HDFC Mutual Fund was registered with SEBI on June 30, 2000.

c. HDFC TR USTEE COMPANY LIMITE D

HDFC Trustee Company Limited (the “Trustee”) is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the Unit holders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the SEBI (Mutual Funds) Regulations, 1996 (the “Regulations”) and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes floated thereunder are managed by HDFC Asset Management Company Limited in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies.

• Share Capital

During the year under review, HDFC Trustee Company Limited has not issued any further shares. HDFC holds 100% of the paid-up equity share capital of HDFC Trustee Company Limited.

• Change in Composition of Board Members

During the year under review, there has been a change in the composition

of the Board of Directors of the Trustee. Mr. James Aird, an Associate Director on the Board of HDFC Trustee Company Limited resigned with effect from April 22, 2009. Further effective June 26, 2009, Mr. Vincent O’Brien was appointed as an Associate Director on the Board of HDFC Trustee Company Limited. As required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the Board of Trustee comprises two-thirds of the Directors who are not associated in any manner with the Sponsors of HDFC Mutual Fund (viz. Housing Development Finance Corporation Limited and Standard Life Investments Limited).

d. HDFC ASSET MANAGEMENT COMPANY LIMITE D

HDFC Asset Management Company Limited (“HDFC AMC”) is a public limited company incorporated under the Companies Act, 1956 on December 10, 1999. HDFC AMC has been appointed as the Asset Management Company of HDFC Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated June 8, 2000, and executed between HDFC Trustee Company Limited and HDFC AMC. HDFC AMC was approved to act as an Asset Management Company for HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. HDFC AMC is also registered with SEBI as a Portfolio Manager.

• Change in Composition of AMC Board Members

During the year under review, there has been a change in the composition

of the Board of HDFC AMC. Mr. James Aird was appointed on the Board of HDFC Asset Management Company Limited as an Associate Director with effect from April 23, 2009. As required under the provisions of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, 50% of the Directors on the Board of HDFC AMC are independent Directors who are not an associate of, or associated in any manner with the sponsor or any of its subsidiaries or the Trustee Company.

• Shareholding Pattern

During the year under review, there has been no change in the equity shareholding pattern of HDFC AMC. The equity shareholding pattern as at March 31, 2010 of HDFC AMC is as

follows:

Name of the Equity Shareholders % of the paid up equity capital Shareholding Pattern Housing Development Finance Corporation Limited (HDFC) 60 Standard Life Investments Limited (SLI) 40

• NDTV Profit Business Leadership Awards 2009

(SLI) 40 • NDTV Profit Business Leadership Awards 2009 HDFC Asset Management Company Limited was awarded

HDFC Asset Management Company Limited was awarded NDTV

Profit Business Leadership Award 2009# on October 26, 2009 in the Mutual Funds Category for the period April 1, 2008 to March 31, 2009 from amongst six nominees in the category. NDTV Profit Business Leadership Awards have been instituted to honour organization excellence and promise to acknowledge the best, the brightest and the most dynamic of Indian organizations that have emerged as leaders in their respective verticals and are leading India in her journey towards being an economic superpower.

# Past performance is no guarantee of future results.

Award Methodology is annexed and forms part of the Trustee Report.

3. INVESTMENT OBJECTIVE OF THE SCHEME

Name of the Scheme Investment Objective HDFC Short Term Plan To generate regular income through investment in debt securities and money market instruments.

4. SIGNIFICANT ACCOUNTING POLICIES:

The Significant Accounting Policies form part of the Notes to the Accounts annexed to the Balance Sheet of the Schemes. The Accounting Policies are in accordance with Securities Exchange Board of India (Mutual Funds)

Regulations, 1996.

5. UNCLAIMED DIVIDENDS & RE DEMPTIONS

Summary of No. of Investors & Corresponding amount as at March 31, 2010:

Name of the Scheme Unclaimed Dividends Unclaimed Redemptions Amount (Rs.) No. of Investors Amount (Rs.) No. of Investors HDFC Short Term Plan

6. DETAILS OF INVESTOR COMPLAINTS

The Statement on Status of Redressal of Complaints received against HDFC Mutual Fund during the financial year 2009-10 is annexed and forms part of the Trustee Report.

7. STATUTOR Y INFOR MATION

a. Housing Development Finance Corporation Limited and Standard Life

Investments Limited (the Sponsors) are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial

contribution of Rs.1,00,000 each for setting up the Fund, and such other accretions / additions to the same.

b. The price and redemption value of the units, and income from them, can

go up as well as down with fluctuations in the market value of its underlying

investments.

c. Full Annual Report shall be disclosed on the website (www.hdfcfund.com)

and shall be available for inspection at the Head Office of HDFC Mutual Fund. Present and prospective Unit holder can obtain copy of the trust deed, the full Annual Report of the Fund / AMC at a price.

Debt Market Outlook

The global recovery is expected to continue to be aided by the massive monetary and fiscal support and a strong growth in Emerging Market Economies (EME). Inflation expectations in advanced countries remain stable, but have started rising in several EMEs. The Indian economy is firmly on the recovery path. The industrial sector recovery is increasingly becoming broad-based and is expected to continue to get better on the back of rising domestic and external demand. However, the inflationary pressures have increased in the recent period. The headline WPI inflation in expected to fall during the year, but fears are increasing that supply– side driven inflation is getting more generalized. This may lead RBI to continue to tighten its monetary policy.

The fiscal deficit is expected to be significantly lower than last year at 5.5% of GDP in FY 2010-11, but the government’s net borrowing (adjusted for maturities, MSS desequestering and RBI OMO) is higher than last year. However, since April 2010, Government has benefited from the success of the spectrum auction, which resulted in an inflow of over Rs. 1.05 lac crores against budget estimates of Rs 35,000 crs. This would enable better fiscal management in the current year. With the likely reduction in fiscal deficit, the long-term government bond yields are expected to head lower during FY11

HDFC MUTUAL FUND – HDFC SHORT TERM PLAN

We have audited the attached Balance Sheet of HDFC Mutual Fund – HDFC Short Term Plan (the “Scheme”) as at March 31, 2010 and the related Revenue Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Managements of the Trustee and the Asset Management companies. Our responsibility is to express an opinion on the financial statements. We report as follows:

a)Our audit was conducted in accordance with generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

b) We have obtained all the information and explanations which to the best of

our knowledge and belief were necessary for the purposes of our audit.

c) The Balance Sheet and the Revenue Account dealt with by this report are in

agreement with the books of account of the Scheme.

d) The Balance Sheet and the Revenue Account dealt with by this report have

been prepared in accordance with accounting policies and standards as specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

e) Non - traded securities have been valued in accordance with the guidelines

notified by the Securities and Exchange Board of India. In our opinion, these valuations are fair and reasonable.

f) Without qualifying our opinion we draw attention to note no. 2.2 in Schedule 8 of the financial statements wherein the Management of the HDFC Asset Management Company Limited has explained its rationale for regarding Accounting Standards issued by the Institute of Chartered Accountants of India as not being applicable to mutual funds.

g) In our opinion and to the best of our information and according to the

explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view:

i. in the case of the Balance Sheet of the state of affairs of the Scheme as at March 31, 2010 and

ii. in the case of the Revenue Account, of the surplus of the Scheme for the year ended on that date. For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. 117366W) Sanjiv V. Pilgaonkar Partner Membership No. 39826

Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the Schemes’ objectives will be achieved and the NAV of the Schemes may go up or down depending upon the factors and forces affecting the securities market.

Past performance of the Sponsors and their affiliates / AMC / Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of the Mutual Fund. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that dividends will be paid regularly. Investors in the Schemes are not being offered any guaranteed / assured returns. The NAV of the units issued under the Schemes may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities. The NAV will inter-alia be exposed to Price / Interest Rate Risk and Credit Risk. HDFC Short Term Plan, an open-ended income scheme, is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future prospects and returns. Please read the Scheme Information Document and Statement of Additional Information before investing. Investment Objective:

To generate regular income through investment in debt securities and money market instruments. In view of the individual nature of tax consequences, each investor is advised to consult his/her professional tax advisor. Statutory

Details: HDFC Mutual Fund has been set up as a trust sponsored by Housing Development Finance Corporation Limited and Standard Life Investments Limited (liability restricted to their contribution of Rs. 1 lakh each to the corpus) with HDFC Trustee Company Limited as the Trustee (Trustee under the Indian Trusts Act, 1882) and with HDFC Asset Management Company Limited as the Investment Manager.

Make Money

MEMETH Buy this file from http://www.download-it.org/learning-

MEMETH

Buy this file from http://www.download-it.org/learning-

resources.php?promoCode=&partnerID=&content=story&storyID=497

Bibliography

Google search engine

www.HDFC LIFE.com

IRDA website

Money control.com

Insurance council of india

Product litratures

ECONOMIC TIMES news paper

Personal case studies

CASE=1

(Information given by a person is Strictly Confidential)

Name

:

Marital Status:

 

Gender: 1.Male

2.Female

Date Of Birth :

Age:

Address

:

Spouse Details: Name Date Of Birth:

Age:

Contact Details:Mobile Telephone(O)

Email Address:

Telephone(R)

Occupation

:

Number of dependents in Family :

Children

: Son:1)Name

Daughter:1) Name:

Age:

Age:

2)Name

Age:

Financial Information:

2)Name:

Age:

Monthly Income :

Monthly Expences:

Yearly Income :

Yearly Expences

:

Savings & Investments Fixed Deposits(in Rupees):

Policies :

Rate Of Return(%):

Total Sum Assured Total Yearly Premium

Rate of Return(%):

Mutual Fund Investments

Rate of Return(%)

Planning Children's Future:

Planning to Protecting you & your dependents lifestyle:

Planning for a Happy & Secure Retirement:

Planning for Creation of Wealth:

Capital Available for short term purchases Liquidity for Emergency Expences

Agreed Budget

We have agreed that the following budget is realistic & affordable

Goal

Frequency

You

Spouse

Protecting Lifestyles

     

Happy

&Secure

     

Retirement

       

Children's Future

       

Creating

Short

Term

     

Wealth

     

Creating

Medium/Long

     

Term Wealth

       

Other

     

BUDGET TOTALS

     

CASE=2

(Information given by a person is Strictly Confidential)

Name

:

Marital Status:

 

Gender: 1.Male

2.Female

Date Of Birth :

Age:

Address

:

Spouse Details: Name Date Of Birth:

Age:

Contact Details:Mobile Telephone(O)

Email Address:

Telephone(R)

Occupation

:

Number of dependents in Family :

Children

: Son:1)Name

Daughter:1) Name:

Age:

Age:

2)Name

Age:

Financial Information:

2)Name:

Age:

Monthly Income :

Monthly Expences:

Yearly Income :

Yearly Expences

:

Savings & Investments Fixed Deposits(in Rupees):

Policies :

Rate Of Return(%):

Total Sum Assured Total Yearly Premium

Rate of Return(%):

Mutual Fund Investments

Rate of Return(%)

Planning Children's Future:

Planning to Protecting you & your dependents lifestyle:

Planning for a Happy & Secure Retirement:

Planning for Creation of Wealth:

Capital Available for short term purchases Liquidity for Emergency Expences

Agreed Budget

We have agreed that the following budget is realistic & affordable

Goal

Frequency

You

Spouse

Protecting Lifestyles

     

Happy

&Secure

     

Retirement

       

Children's Future

       

Creating

Short

Term

     

Wealth

     

Creating

Medium/Long

     

Term Wealth

       

Other

     

BUDGET TOTALS

     

CASE=3

(Information given by a person is Strictly Confidential)

Name

:

Marital Status:

 

Gender: 1.Male

2.Female

Date Of Birth :

Age:

Address

:

Spouse Details: Name Date Of Birth:

Age:

Contact Details:Mobile Telephone(O)

Email Address:

Telephone(R)

Occupation

:

Number of dependents in Family :

Children

: Son:1)Name

Daughter:1) Name:

Age:

Age:

2)Name

Age:

Financial Information:

2)Name:

Age:

Monthly Income :

Monthly Expences:

Yearly Income :

Yearly Expences

:

Savings & Investments Fixed Deposits(in Rupees):

Policies :

Rate Of Return(%):

Total Sum Assured Total Yearly Premium

Rate of Return(%):

Mutual Fund Investments

Rate of Return(%)

Planning Children's Future:

Planning to Protecting you & your dependents lifestyle:

Planning for a Happy & Secure Retirement:

Planning for Creation of Wealth:

Capital Available for short term purchases Liquidity for Emergency Expences

Agreed Budget

We have agreed that the following budget is realistic & affordable

Goal

Frequency

You

Spouse

Protecting Lifestyles

     

Happy

&Secure

     

Retirement

       

Children's Future

       

Creating

Short

Term

     

Wealth

     

Creating

Medium/Long

     

Term Wealth

       

Other

     

BUDGET TOTALS

     

CASE=4

(Information given by a person is Strictly Confidential)

Name

:

Marital Status:

 

Gender: 1.Male

2.Female

Date Of Birth :

Age:

Address

:

Spouse Details: Name Date Of Birth:

Age:

Contact Details:Mobile Telephone(O)

Email Address:

Telephone(R)

Occupation

:

Number of dependents in Family :

Children

: Son:1)Name

Daughter:1) Name:

Age:

Age:

2)Name

Age:

Financial Information:

2)Name:

Age:

Monthly Income :

Monthly Expences:

Yearly Income :

Yearly Expences

:

Savings & Investments Fixed Deposits(in Rupees):

Policies :

Rate Of Return(%):

Total Sum Assured Total Yearly Premium

Rate of Return(%):

Mutual Fund Investments

Rate of Return(%)

Planning Children's Future:

Planning to Protecting you & your dependents lifestyle:

Planning for a Happy & Secure Retirement:

Planning for Creation of Wealth:

Capital Available for short term purchases Liquidity for Emergency Expences

Agreed Budget

We have agreed that the following budget is realistic & affordable

Goal

Frequency

You

Spouse

Protecting Lifestyles

     

Happy

&Secure

     

Retirement

       

Children's Future

       

Creating

Short

Term

     

Wealth

     

Creating

Medium/Long

     

Term Wealth

       

Other

     

BUDGET TOTALS