INTRODUCTION

SYSTEMATIC INVESTMENT PLAN (SIP)

The Systematic Investment Plan (SIP) is a simple and time honored investment strategy for
accumulation of wealth in a disciplined manner over long term period. The plan aims at a
better future for its investors as an SIP investor gets good rate of returns compared to a one
time investor. A specific amount should be invested for a continuous period at regular
intervals under this plan.

SIP is similar to a regular saving scheme like a recurring deposit. It is a method of investing a
fixed sum regularly in a mutual fund.

SIP allows the investor to buy units on a given date every month. While the investor's
investment remains the same, more number of units can be bought in a declining market and
less number of units in a rising market. The investor automatically participates in the market
swings once the option for SIP is made.

SIP ensures averaging of dollar cost as consistent investment ensures that average cost per
unit fits in the lower range of average market price. An investor can either give post dated
cheques or credit card instruction and the investment will be made regularly in the mutual
fund desired for the required amount. SIP generally starts at minimum amounts of $300 per
month and upper limit could be as you may choose.

SCOPE OF STUDY

A big boom has been witnessed in Mutual Fund Industry in resent times. A large
number of new players have entered the market and trying to gain market share in this
rapidly improving market.

The research was carried on in Varanasi. I had been sent at one of the branch of HDFC
AMC LTD. Varanasi where I completed my Project work. I surveyed on my Project
Topic “Awareness of systematic plan amongst investors.” on the visiting customers of
the HDCF AMC Varanasi.
Study will help to know awareness of SIP in the customers, which company,
portfolio, mode of investment, option for getting return and so on they prefer.
This project report may help the company to make further planning and strategy.

Objective
 To understand the needs of the investors with respect to their investment and
various options where investors invest their money

 To understand the awareness of SIP route to invest.

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

Research Methodology

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

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

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

this analysis made for getting solution for problem.

 Define the problem

 Define the sample size

 Collection of data

 Analysis and interpretation

Defining the problem

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

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

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

Research plan

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

collection was given more importance since it is overhearing factor in attitude studies.
One of the most important users of research methodology is that it helps in identifying

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

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

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

day to day decision and critical ones.

Data sources:

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

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

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

collected through questionnaire.

Duration of Study:

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

Sampling:

Sampling procedure: The sample was selected of them who are the customers/visitors
of HDFC Asset Management Company Limited AD-64/127, 4th Floor Arihant
Complex, Sigra Limited, Varansi irrespective of them being investors or not or
availing the services or not. It was also collected through personal visits to persons, by
formal and informal talks and through filling up the questionnaire prepared. The data
has been analyzed by using mathematical/Statistical tool.

Sample size:

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

Sample design:

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

Limitations

I. Some of the persons were not so responsive.

II. Possibility of error in data collection because many of investors may have not given
actual answers of my questionnaire.
III. Though research based decision-making is now considered but still there is a gap
between the understanding of researcher and users. Research is there to help in
decision-making, not a substitute of decision-making. Some of the following
limitations have restricts the scope of survey to some extent:
IV. Some respondents gave vague information and were not serious while responding the
questionnaire as they feel it was not important for them.
 INDUSTRY PROFILE

History of Mutual Fund Industry

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank of India. The history of mutual
funds in India can be broadly divided into four distinct phases:

Customers Profile of Mutual Fund Industry

(Type of Customers)

1. While you recommend a financial plan, you also need to understand the needs and
financial objectives of your customer along with his risk tolerance and his
expectations from the investments.

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

3. Advise your customers to start investing early and regularly to help them optimize
the benefits of the compounding rupee.
 4. Help your investors with the procedures and paper work involved in making an
investment.

Treat every customer exclusively. A satisfied customer can give you increased business
through resale and referrals of other prospective customers.

Positioning Strategy of Mutual Fund Industry

Positioning starts with a product. But positioning is not what you do to a product. Positioning
is what you do to the mind of the prospect. That is, you position the product in the mind of
prospect. A company’s differentiating and positioning strategy must change as the product,
market, and competitors change over time. . There should be no under positioning, over
positioning, confused positioning or doubtful positioning.

Channels of Distribution

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

Here assets management companies have distributors like :

 Consultants
 Agents
 Distributors
 Advisers
 Broker

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

Promotional Tools Employed by Mutual Fund Companies

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

(1) Banners:

Banners define brief idea of scheme, it should be very attractive with specific objective &
its related picture in city, and Banners keep in specific places which very help to do good
publicity. It distributes only by AMC’s office. When any new scheme is launched or any
new NFO coming up that times company make banners before few days. Its helps to good
advertising & easy cover to customer or people.

(2) Application Form:

Any product like Equity, debt and balance, investor should fill up its common
Application forms. Form define acknowledge slip which give return to customer.
Actually 3-time stamp done in form, one of them is acknowledged slip. These forms are
distributed by Assets Management Company’s office. It is all Assets Management
Company’s office duty to dispatch forms to their customer like agents, brokers, and
advisers time to time.

(3) Broachers:

Broachers include brief history of company. It defines when and where assets
management Company invests investor’s money. This defines performance of each
scheme product & also defines its comparison to last 3 months to more than 5 years. In
end of every month Assets Management Company’s office send Boucher to their
investors, brokers, agents, advisers regularly.
 Company profile

Background and Objective of HDFC Group

Background

HDFC was incorporated in 1977 with the primary objective of meeting a social need – that of
promoting home ownership by providing long-term finance to households for their housing
needs. HDFC was promoted with an initial share capital of Rs. 100 million.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country
through the provision of housing finance in a systematic and professional manner, and to
promote home ownership. Another objective is to increase the flow of resources to the
housing sector by integrating the housing finance sector with the overall domestic financial
markets...

Organizational Goals

HDFC’s main goals are to

a) Develop close relationships with individual households,

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

c) Transform ideas into viable and creative solutions,

d) Provide consistently high returns to shareholders, and

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

Key Companies of HDFC group

 HDFC Reality
 HDFC Bank
 HDFC Standard Life Insurance
 HDFC Mutual Fund
 HDFC Chubb General Insurance
 Credit Information Bureau (INDIA) Limited
 HDFC Securities
 HDFC Consultancy Services
 Intel net Global

HDFC-Asset Management Company

An HDFC asset Management Company limited is well-established fund house. HDFC Assets
Management Company limited is sponsored by Housing Development Finance Corporation
Limited (HDFC) andhttp://www.standardlifeinvestments.com/ Standard life investments
limited.

HDFC assets Management Company limited launched its scheme HDFC EQUITY FUND in
the year January 1995. Since then it focused on different class of schemes for many years and
launched several innovative products that went to become bourgeoning categories in the
Indian mutual fund industry.

Some of these were HDFC GROWTH FUND, HDFC TOP 200 FUND, and HDFC
BALANCED FUND, HDFC PRUDENCE FUND etc. HDFC assets Management Company
limited have offices in 29 cities and currently manage assets in excess of Rs 75,406.10 cores.
(May 2009)

HDFC was incorporated in 1977 as the first specialized Mortgage Company in India. HDFC
is a Premier Housing Finance Company in India. HDFC provides financial assistance to
individuals, corporates and developers for the purchase or construction of residential housing.
It also provides property related services (e.g. property identification, sales services and
valuation), training and consultancy. Of these activities, housing finance remains the
dominant activity. HDFC has a client base of around 10 lac borrowers, around 10 lac
depositors, over 1,23,000 shareholders and 50,000 deposit agents, as at March 31, 2009. The
Company has a total asset size of Rs. 96,993 crore as at March 31, 2009 and cumulative
approvals and disbursements of housing loans of Rs. 237,450 crore and Rs. 191,806 crore
respectively as at March 31, 2009. HDFC had raised funds from international agencies such
as the World Bank, IFC (Washington), USAID, DEG, ADB and KfW, international
syndicated loans, domestic term loans from banks and insurance companies, bonds and
deposits. HDFC has received the highest rating for its deposits program for the fourteenth
year in succession.

STANDARD LIFE INVESTMENTS LIMITED

Standard Life Investments Limited is the dedicated investment management company of the
Standard Life group and is a wholly owned subsidiary of Standard Life Investments
(Holdings) Limited, which in turn is a wholly owned subsidiary of Standard Life plc. With
global assets under management of approximately US$ 169 billion as at March 31, 2009,
Standard Life Investments Limited is one of the world's major investment companies and is
responsible for investing money on behalf of five million retail and institutional clients
worldwide. Standard Life Investments is a leading asset management company, with
approximately US$ 169 billion of assets under management as at March 31, 2009. The
company operates in the UK, Canada, Hong Kong, China, Korea, Ireland, Paris, Sydney and
the USA to ensure it is able to form a truly global investment view.

Board of Directors
The Board of Directors of the HDFC Asset Management Company Limited (AMC) consists
of the following eminent persons.
Mr. Deepak S Parekh

Mr. Hoshang S. Billimoria

Mr. N. Keith Skeoch

Mr. Humayun Dhanrajgir

Ms. Renu S. Karnad

Mr. Milind Barve

Mr. Mark Connolly

Mr. Rajeshwar Ram Bajaj

Mr. P. M. Thampi

Dr. Deepak Phatak

Product Details

Equity Schemes of HDFC

1. HDFC Equity Fund:-

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

appreciation.
 Investment Options: Dividend & Growth Option
 Nature of Scheme: Open-ended Growth Scheme
 Inception Date: January 01, 1995

2. HDFC growth fund:-

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

long term capital appreciation from a portfolio that is invested predominantly in equity
and equity related instruments.
 Investment Options: Dividend & Growth Option
 Nature of Scheme: Open-ended Growth Scheme
 Inception Date: September 11, 2000

3. HDFC Top 200 Fund:-

 Investment Objective: To generate long-term capital appreciation from a portfolio of
equity and equity-linked instruments primarily drawn from the companies in BSE 200
index.
 Investment Options: Dividend & Growth Option
 Nature of Scheme: Open-ended Growth Scheme
 Inception Date: October 11, 1996

4. HDFC Capital Builder Fund:-

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

substantially constituted of equity and equity related securities of Small and Mid-Cap
companies.
 Investment Options: Dividend & Growth Option
 Nature of Scheme: Open Ended Growth Scheme
 Inception Date: February 01, 1994

5. HDFC Core & Satellite Fund:-

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

appreciation through equity investment in companies whose shares are quoting at prices
below their true value.
 Investment Options: Dividend & Growth Option
 Nature of Scheme: Open Ended Growth Scheme
 Inception Date: September 17, 2004

6. HDFC Premier Multi-Cap Fund:-

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

appreciation in the long term through equity investments by investing in a diversified
portfolio of Mid Cap and Large Cap `blue chip` companies.
 Investment Options: Dividend Plan, Growth Plan, The Dividend Plan offers Dividend
Payout and Reinvestment Facility.
 Nature of Scheme: Open Ended Growth Scheme
 Inception Date: April 06, 2005
 Balanced Schemes of HDFC

1. HDFC Balanced Fund: -

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

appreciation along with current income from a combined portfolio of equity and equity
related and debt and money market instruments.
 Investment Options: Dividend & Growth Option
 Nature of Scheme: Open Ended balanced fund
 Inception Date: September 11, 2000

2. HDFC Prudence Fund:-

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

returns and capital appreciation over a long period of time, from a judicious mix of equity
and debt investments, with the aim to prevent/ minimize any capital erosion.
 Investment Options: Dividend & Growth Option
 Nature of Scheme: Open Ended balanced fund
 Inception Date: February 01, 1994

3. HDFC Short Term Plan:-

 Investment Objective: - The primary objective of the HDFC Short Term Plan is to
generate regular income through investment in Debt Securities and Money Market
Instruments.
 Investment Options: Growth Plan, Dividend Plan. The Dividend Plan offers Dividend
Payout and Reinvestment Facility.
 Nature of Scheme:- Open Ended income fund
 Inception Date: - February 28, 2002
4. HDFC Multi Yield Fund :-
 Investment Objective: The primary objective of the Scheme is to generate positive
returns over medium time frame with low risk of capital loss over medium time frame.
 Investment Options: Growth Plan, Dividend Plan. The Dividend Plan offers Dividend
Payout and Reinvestment Facility.
 Nature of Scheme: - Open Ended income fund
 Inception Date: - September 17, 2004

Debt Schemes of HDFC

1. HDFC Income Fund:-

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

while maintaining a balance of safety, yield and liquidity.
 Investment Options: Dividend & Growth Option
 Nature of Scheme: - Open-ended Income Scheme
 Inception Date: - September 11, 2000

HDFC Income Fund: -

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

generate income by investing in a range of debt and money market instruments of various
maturity dates with a view to maximizing income while maintaining the optimum balance
of yield, safety and liquidity.
 Investment Options: Dividend & Growth Option
 Nature of Scheme: - Open Ended Income Scheme
 Inception Date: - April 28, 1997

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

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

through investment primarily in Debt and Money Market Instruments. The secondary
objective of the Scheme is to generate long-term capital appreciation by investing a
 portion of the Scheme’s assets in equity and equity related instruments. However, there
can be No assurance that the investment objective of the Scheme will be achieved.
 Investment Options: Quarterly Dividend Option, Monthly Dividend Option, and Growth
Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility
 Nature of Scheme: - An open-ended income scheme. Monthly income is not assured and
is subject to availability of distributable surplus
 Inception Date:- December 26, 2003

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

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

through investment primarily in Debt and Money Market Instruments. The secondary
objective of the Scheme is to generate long-term capital appreciation by investing a
portion of the Scheme’s assets in equity and equity related instruments. However, there
can be no assurance that the investment objective of the Scheme will be achieved
 Investment Options: Growth Plan, Quarterly Dividend Option, Monthly Dividend
Option. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
 Nature of Scheme: - An open-ended income scheme. Monthly income is not assured and
is subject to availability of distributable surplus
 Inception Date: - December 26, 2003
HDFC MF SIP is similar to a Recurring Deposit. Every month on a specified date an amount
you choose is invested in a mutual fund scheme of your choice. The dates currently available
for SIPs are the 1st, 5th, 10th, 15th, 20th and the 25th of a month. You’ll be amazed to learn
about the many benefits of investing through HDFC MF SIP.
Become A Disciplined Investor
Being disciplined - It’s the key to investing success. With the HDFC MF Systematic
Investment Plan you commit an amount of your choice (minimum of Rs. 500 and in multiples
of Rs. 100 thereof*) to be invested every month in one of our schemes.

Think of each SIP payment as laying a brick. One by one, you’ll see them transform into a
building. You’ll see your investments accrue month after month. It’s as simple as giving at
least 6 postdated monthly cheques to us for a fixed amount in a scheme of your choice. It’s
the perfect solution for irregular investors.

*Minimum amounts may differ for each Scheme.

Reach Your Financial Goal

Imagine you want to buy a car a year from now, but you don’t know where the down-
payment will come from. HDFC MF SIP is a perfect tool for people who have a specific,
future financial requirement. By investing an amount of your choice every month, you can
plan for and meet financial goals, like funds for a child’s education, a marriage in the family
or a comfortable postretirement life. The table below illustrates how a little every month can
go a long way.

Table A:-

Monthly Savings - What your savings may generate

Savings per month Total amount invested Rate of return

(for 15 years) (Rs. in Lacs)
6.0% 8.0% 10.0%

(rupees in lacs, 15 years later)*

5000 9.0 14.6 17.4 20.9

4000 7.2 11.7 13.9 16.7

3000 5.4 8.8 10.4 12.5

2000 3.6 5.8 7.0 8.3

1000 1.8 2.9 3.5 4.2

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

Disclaimer: The illustration above is merely indicative in nature and should not be construed
as investment advice. It does not in any manner imply or suggest performance of any HDFC
Mutual Fund Scheme(s).

Take Advantage of Rupee Cost Averaging

Most investors want to buy stocks when the prices are low and sell them when prices are
high. But timing the market is time consuming and risky. A more successful investment
strategy is to adopt the method called Rupee Cost Averaging. To illustrate this we’ll compare
investing the identical amounts through a SIP and in one lump sum.

Imagine Suresh invests Rs. 1000 every month in an equity mutual fund scheme starting in
January. His friend, Rajesh, invests Rs. 12000 in one lump sum in the same scheme. The
following table illustrate how their respective investments would have performed from Jan to
Dec:

Table B:-

Suresh’s Investment Rajesh’s Investment

Month NAV Amount Units Amount Units

Jan-18 9.345 1000 107.0091 12000 1284.1091

Feb-18 9.399 1000 106.3943

Mar-18 8.123 1000 123.1072

Apr-18 8.750 1000 114.2857

May-18 8.012 1000 124.8128

Jun-18 8.925 1000 112.0448

Jul-18 9.102 1000 109.8660

Aug-18 8.310 1000 120.3369

Sep-18 7.568 1000 132.1353

Oct-18 6.462 1000 154.7509

Nov-18 6.931 1000 144.2793

Dec-18 7.600 1000 131.5789

*NAV as on the 10th every month. These are assumed NAVs in a volatile market
Disclaimer: The illustration above is merely indicative in nature and should not be construed
as investment advice. It does not in any manner imply or suggest performance of any HDFC
Mutual Fund Scheme(s). Rupee Cost Averaging neither ensures you profits nor protects you
from making a loss in declining markets.

As seen in the table, by investing through SIP, you end up buying more units when the price
is low and fewer units when the price is high. However, over a period of time these market
fluctuations are generally averaged. And the average cost of your investment is often
reduced.

Grow Your Investment with Compounded Benefits

It is far better to invest a small amount of money regularly, rather than save up to make one
large investment. This is because while you are saving the lump sum, your savings may not
earn much interest.

With HDFC MF SIP, each amount you invest grows through compounding benefits as well.
That is, the interest earned on your investment also earns interest. The following example
illustrates this.

Imagine Neha is 20 years old when she starts working. Every month she saves and invests Rs.
5,000 till she is 25 years old. The total investment made by her over 5 years is Rs. 3
lakhs.Arjun also starts working when he is 20 years old. But he doesn’t invest monthly. He
gets a large bonus of Rs. 3 lakhs at 25 and decides to invest the entire amount.

Both of them decide not to withdraw these investments till they turn 50. At 50, Neha’s
Investments have grown to Rs. 46,68,273* whereas Arjun’s investments have grown to Rs.
36,17,084*. Neha’s small contributions to a SIP and her decision to start investing earlier
than Arjun have made her wealthier by over Rs. 10 lakhs.

Do All This Effortlessly

Investing with HDFC MF SIP is easy. Simply give us post-dated cheques or opt for an
Auto Debit from your bank account for an amount of your choice (minimum of Rs. 500 and
in multiples of Rs. 100 thereof*) and we’ll invest the money every month in a fund of your
choice. The plans are completely flexible. You can invest for a minimum of six months, or
for as long as you want. You can also decide to invest quarterly and will need to invest for a
minimum of two quarters.
Theoretical frame work
Introduction to the topic

What is Systematic Investment Plan?

Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds to

investors, allowing them to invest using small periodically amounts instead of lump sums.
The frequency of investment is usually weekly, monthly or quarterly. In SIP, a fixed amount
of money is debited by the investors in bank accounts periodically and invested in a specified
mutual fund. The investor is allocated a number of units according to the current Net asset
value. Every time a sum is invested, more units are added to the investors account.

Systematic Investment Plan (SIP) is a simple, time-honored strategy designed to help

investors accumulate wealth in a disciplined manner over the long period of time and plan a
better future for them. This disciplined approach of investing provides with the following
benefits:

1. Power of Compounding – The benefit of investing NOW

Most of us delay investments until the last moment. Needless to say, the longer one delay, the
greater will be the financial burden on him to meet his financial goals. On the other hand, one
would be surprised what one could achieve by saving a small sum of money regularly at an
early age. Moreover, the earlier one invests, the longer his money works for him and greater
will be the power of compounding.

The power of compounding underlines the importance of making his money work for him at
an early age.

Take this example.

Shyam starts saving Rs. 5000 every year from the age of 20 and continues to do so till he
reaches 35, after which he stops making any further investment. Sanjay starts saving Rs
12,000 every year from the age of 35 and continues to do so till he reaches 65 years of age. If
both earn, say, 12% per annum on their investments, which of them would be wealthier when
they retire at 65?
Shyam

Surprising, isn’t it?

At 65, Shyam would have accumulated Rs 55.84 lakhs whereas Sanjay’s wealth would have
been lower at Rs 28.92 lakhs. The power of compounding can have a significant impact on
wealth accumulation, especially if one remains invested over a long period of time.

2. Rupee Cost Averaging – The power of disciplined investment

Investing would be simple if one always picks the best time to buy and sell. However, timing
the market consistently can be a difficult task and one could be hit with a loss sooner or later.
What one needs is an automatic market-timing mechanism like Rupee Cost Averaging (RCA)
that eliminates the need to time your investments.

In other words, with RCA, you don’t have to worry about where share prices or interest rates
are headed. You simply invest a fixed amount at regular intervals, regardless of the NAV.
The idea is that you buy fewer units when the NAV is high and more when it is low –
automatically. This is in line with our natural desire to buy low and sell high.

For instance, you could opt for a Systematic Investment Plan (SIP) by investing Rs 1000
every month into an open-ended equity scheme with an NAV of Rs 10. The average cost per
unit under the SIP will always be less than the average purchase price per unit, regardless of
whether the market is rising or falling or fluctuating.

RCA, however, does not guarantee a profit. But with a sensible and long-term investment
approach, it can smoothen out the market ups and downs and reduce the risk of investing in
volatile markets. In a nutshell, RCA is an efficient and convenient vehicle to accumulate
wealth in a time-bound and disciplined manner.

3. Convenience:

Save yourself from the trouble of doing the same thing. You do not have to take time out
from your busy schedule to make your investments. Enroll for the SIP by starting an
account and providing post-dated cheques of periodic investments (monthly, quarterly)
 based on your convenience. You can relax once you have sent in your cheques with the
completed Enrolment Form.

What is Portfolio Management?

We all dream of beating the market and being super investors and spend an inordinate
amount of time and resources in this endeavor. Consequently, we are easy prey for the magic
bullets and the secret formulae offered by eager salespeople pushing their wares. In spite of
our best efforts, most of us fail in our attempts to be more than average investors.
Nonetheless, we keep trying, hoping that we can be more like the investing legends – another
Warren Buffett or Peter Lynch. We read the words written by and about successful investors,
hoping to find in them the key to their stock-picking abilities, so that we can replicate them
and become wealthy quickly.

In our search, though, we are whipsawed by contradictions and anomalies. In one corner of
the investment town square, stands one advisor, yelling to us to buy businesses with solid
cash flows and liquid assets because that’s what worked for Buffett. In another corner,
another investment expert cautions us that this approach worked only in the old world, and
that in the new world of technology, we have to bet on companies with solid growth
prospects. In yet another corner, stands a silver tongued salesperson with vivid charts and
presents you with evidence of his capacity to get you in and out of markets at exactly the
right times. It is not surprising that facing this cacophony of claims and counterclaims that we
end up more confused than ever.

In this introduction, we present the argument that to be successful with any investment
strategy, you have to begin with an investment philosophy that is consistent at its core and
which matches not only the markets you choose to invest in but your individual
characteristics. In other words, the key to success in investing may lie not in knowing what
makes Peter Lynch successful but in finding out more about you.

What is an investment philosophy?

An investment philosophy is a coherent way of thinking about markets, how they

work (and sometimes do not) and the types of mistakes that you believe consistently underlie
investor behavior. Why do we need to make assumptions about investor mistakes? As we will
argue, most investment strategies are designed to take advantage of errors made by some or
all investors in pricing stocks. Those mistakes themselves are driven by far more basic
assumptions about human behavior. To provide an illustration, the rational or irrational
tendency of human beings to join crowds can result in price momentum – stocks that have
gone up the most in the recent past are more likely to go up in the near future. Let us
consider, therefore, the ingredients of an investment philosophy.

Human Frailty

Underlying all investment philosophies is a view about human behavior. In fact, one
weakness of conventional finance and valuation has been the short shrift given to human
behavior. It is not that we (in conventional finance) assume that all investors are rational, but
that we assume that irrationalities are random and cancel out. Thus, for every investor who
tends to follow the crowd too much (a momentum investor), we assume an investor who goes
in the opposite direction (a contrarian), and that their push and pull in prices will ultimately
result in a rational price. While this may, in fact, be a reasonable assumption for the very long
term, it may not be a realistic one for the short term.

Academics and practitioners in finance who have long viewed the rational investor
assumption with skepticism have developed a new branch of finance called behavioral
finance which draws on psychology, sociology and finance to try to explain both why
investors behave the way they do and the consequences for investment strategies. As we go
through this section, examining different investment philosophies, we will try at the outset of
each philosophy to explore the assumptions about human behavior that represent its base.

Market Efficiency

A closely related second ingredient of an investment philosophy is the view of market

efficiency or its absence that you need for the philosophy to be a successful one. While all
active investment philosophies make the assumption that markets are inefficient, they differ
in their views on what parts of the market the inefficiencies are most likely to show up and
how long they will last. Some investment philosophies assume that markets are correct most
of the time but that they overreact when new and large pieces of information are released
about individual firms – they go up too much on good news and down too much on bad news.
Other investment strategies are founded on the belief that markets can make mistakes in the
aggregate – the entire market can be under or overvalued – and that some investors (mutual
fund managers, for example) are more likely to make these mistakes than others. Still other
investment strategies may be based on the assumption that while markets do a good job of
pricing stocks where there is a substantial amount of information – financial statements,
analyst reports and financial press coverage –they systematically misprice stocks on which
such information is not available.

Tactics and Strategies

Once you have an investment philosophy in place, you develop investment strategies
that build on the core philosophy. Consider, for instance, the views on market efficiency
expounded in the last section. The first investor, who believes that markets over react to
news, may develop a strategy of buying stocks after large negative earnings surprises (where
the announced earnings come in well below expectations) and selling stocks after positive
earnings surprises. The second investor who believes that markets make mistakes in the
aggregate may look at technical indicators (such as mutual fund cash positions and short sales
ratios) to find out whether the market is overbought or oversold and take a contrary position.
The third investor who believes that market mistakes are more likely when information is
absent may look for stocks that are not followed by analysts or owned by institutional
investors.

It is worth noting that the same investment philosophy can spawn multiple investment
strategies. Thus, a belief that investors consistently overestimate the value of growth and
under estimate the value of existing assets can manifest itself in a number of different
strategies ranging from a passive one of buying low PE ratio stocks to a more active one of
buying such companies and attempting to liquidate them for their assets. In other words, the
number of investment strategies will vastly outnumber the number of investment
philosophies.

Why do you need an investment philosophy?

Most investors have no investment philosophy, and the same can be said about many
money managers and professional investment advisors. They adopt investment strategies that
seem to work (for other investors) and abandon them when they do not. Why, if this is
possible, you might ask, do you need an investment philosophy? The answer is simple. In the
absence of an investment philosophy, you will tend to shift from strategy to strategy simply
based upon a strong sales pitch from a proponent or perceived recent success. There are three
negative consequences for your portfolio:

Lacking a rudder or a core set of beliefs, you will be easy prey for charlatans and pretenders,
with each one claiming to have found the magic strategy that beats the market.

As you switch from strategy to strategy, you will have to change your portfolio, resulting in
high transactions costs and you will pay more in taxes.

While there may be strategies that do work for some investors, they may not be appropriate
for you, given your objectives, risk aversion and personal characteristics. In addition to
having a portfolio that under performs the market, you are likely to find yourself with an
ulcer or worse.

With a strong sense of core beliefs, you will have far more control over your destiny. Not
only will you be able to reject strategies that do not fit your core beliefs about markets but
also to tailor investment strategies to your needs. In addition, you will be able to get much
more of a big picture view of what it is that is truly different across strategies and what they
have in common.

The Big Picture of Investing

To see where the different investment philosophies fit into investing, let us begin by looking
at the process of creating an investment portfolio. Note that this is a process that we all follow
– amateur as well as professional investors - though it may be simpler for an individual
constructing his or her own portfolio than it is for a pension fund manager with a varied and
demanding clientele.

Step 1: Understanding the Client

The process always starts with the investor and understanding his or her needs and
preferences. For a portfolio manager, the investor is a client and the first and often most
significant part of the investment process understands the client’s needs the client’s tax status
and most importantly, his or her risk preferences. For an individual investor constructing his
or her own portfolio, this may seem simpler, but understanding one’s own needs and
preferences is just as important a first step as it is for the portfolio manager.

Step 2: Portfolio Construction

The next part of the process is the actual construction of the portfolio, which we
divide into three sub-parts.

1. The first of these is the decision on how to allocate the portfolio across different asset
classes defined broadly as equities, fixed income securities and real assets (such as real estate,
commodities and other assets). This asset allocation decision can also be framed in terms of
investments in domestic assets versus foreign assets, and the factors driving this decision.

2. The second component is the asset selection decision, where individual assets are picked
within each asset class to make up the portfolio. In practical terms, this is the step where the
stocks that make up the equity component, the bonds that make up the fixed income
component and the real assets that make up the real asset component are selected.

3. The final component is execution, where the portfolio is actually put together. Here
investors must weigh the costs of trading against their perceived needs to trade quickly.
While the importance of execution will vary across investment strategies, there are many
investors who fail at this stage in the process.

Step 3: Evaluate portfolio performance

The final part of the process, and often the most painful one for professional money
managers, is performance evaluation. Investing is after all focused on one objective and one
objective alone, which is to make the most money you can, given your particular risk
preferences. Investors are not forgiving of failure and unwilling to accept even the best of
excuses, and loyalty to money managers is not a commonly found trait. By the same token,
performance evaluation is just as important to the individual investor who constructs his or
her own portfolio, since the feedback from it should largely determine how that investor
approaches investing in the future.
These parts of the process are summarized in Figure 1.1, and we will return to this figure to
emphasize the steps in the process as we consider different investment philosophies. As you
will see, while all investment philosophies may have the same end objective of beating the
market, each philosophy will emphasize a different component of the overall process and
require different skills for success.

Categorizing Investment Philosophies

We will present the range of investment philosophies in this section, using the
investment process to illustrate each philosophy. While we will leave much of the detail for
later, we will attempt to present at least the core of each philosophy here.

Market Timing versus Asset Selection

The broadest categorization of investment philosophies is on whether they are based

upon timing overall markets or finding individual assets that are mispriced. The first set of
philosophies can be categorized as market timing philosophies, while the second can be
viewed as security selection philosophies.

Within each, though, are numerous strands that take very different views about markets.
Consider market timing first. While most of us consider market timing only in the context of
the stock market, there are investors who consider market timing to include a much broader
range of markets – currency markets, bond markets and real estate come to mind. The range
of choices among security selection philosophies is even wider and can span charting and
technical indicators, fundamentals (earnings, cashflows or growth) and information (earnings
reports, acquisition announcements).

While market timing has allure to all of us (because it pays off so well when you are
right), it is difficult to succeed at for exactly that reason. There are all too often too many
investors attempting to time markets, and succeeding consistently is very difficult to do. If
you decide to pick stocks, how do you choose whether you pick them based upon charts,
fundamentals or growth potential? The answer, as we will see, in the next section will depend
not only on your views of the market and empirical evidence but also on your personal
characteristics.

Activist versus Passive Investing

 At the broadest level, investment philosophies can also be categorized as active or
passive strategies. In a passive strategy, you invest in a stock or company and wait for your
investment to pay off. Assuming that your strategy is successful, this will come from the
market recognizing and correcting a misevaluation. Thus, a portfolio manager who buys
stocks with low price earnings ratios and stable earnings is following a passive strategy. So is
an index fund manager, who essentially buys all stocks in the index. In an activist strategy,
you invest in a company and then try to change the way the company is run to make it more
valuable. Venture capitalists can be categorized as activist investors since they not only take
positions in promising companies but they also provide significant inputs into how these
firms are run. In recent years, we have seen investors like Michael Price and the California
State pension fund (Calpers) bring this activist philosophy to publicly traded companies,
using the clout of large positions to change the way companies are run. We should hasten to
draw a contrast between activist investing and active investing. Any investor who tries to beat
the market by picking stocks is viewed as an active investor. Thus, active investors can adopt
passive strategies or activist strategies.

Time Horizon

Different investment philosophies require different time horizons. A philosophy based

upon the assumption that markets overreact to new information may generate short term
strategies. For instance, you may buy stocks right after a bad earnings announcement, hold a
few weeks and sell (hopefully at a higher price, as the market corrects its overreaction). In
contrast, a philosophy of buying neglected companies (stocks that are not followed by
analysts or held by institutional investors) may require much longer time horizons.

One factor that will determine the time horizon of an investment philosophy is the
nature of the adjustment that has to occur for you to reap the rewards of a successful strategy.
Passive value investors who buy stocks in companies that they believe are undervalued may
have to wait years for the market correction to occur, even if they are right. Investors, who
trade ahead or after earnings reports, because they believe that markets do not respond
correctly to such reports, may hold the stock for only a few days. At the extreme, investors
who see the same (or very similar) assets being priced differently in two markets may buy the
cheaper one and sell the more expensive one, locking in arbitrage profits in a few minutes.

Coexistence of Contradictory Strategies

 One of the most fascinating aspects of investment philosophy is the coexistence of
investment philosophies based upon contradictory views of the markets. Thus, you can have
market timers who trade on price momentum (suggesting that investors are slow to learn from
information) and market timers who are contrarians (which is based on the belief that
markets over react). Among security selectors who use fundamentals, you can have value
investors who buy value stocks, because they believe markets overprice growth, and growth
investors who buy growth stocks using exactly the opposite justification. The coexistence of
these contradictory impulses for investing may strike some as irrational, but it is healthy and
may actually be responsible for keeping the market in balance. In addition, you can have
investors with contradictory philosophies co-existing in the market because of their different
time horizons, views on risk and tax status. For instance, tax exempt investors may find
stocks that pay large dividends a bargain, while taxable investors may reject these same
stocks because dividends are taxed at the ordinary tax rate.

Investment Philosophies in Context

We can consider the differences between investment philosophies in the context of the
investment process. Market timing strategies primarily affect the asset allocation decision.
Thus, investors who believe that stocks are undervalued will invest more of their portfolios in
stocks than would be justified given their risk preferences. Security selection strategies in all
their forms – technical analysis, fundamentals or private information – all center on the
security selection component of the portfolio management process. You could argue that
strategies that are not based upon grand visions of market efficiency but are designed to take
advantage of momentary mispricing of assets in markets (such as arbitrage) revolve around
the execution segment of portfolio management. It is not surprising that the success of such
opportunistic strategies depend upon trading quickly to take advantage of pricing errors, and
keeping transactions costs low. Figure 1.2 presents the different investment philosophies.

Developing an Investment Philosophy: The Step

If every investor needs an investment philosophy, what is the process that you go
through to come up with such a philosophy? While portfolio management is about the
process, we can lay out the three steps involved in this section.

Step 1: Understand the fundamentals of risk and valuation

 Before you embark on the journey of finding an investment philosophy, you need to
get your financial toolkit ready. At the minimum, you should understand

- how to measure the risk in an investment and relate it to expected returns.

- how to value an asset, whether it be a bond, stock or a business

- the ingredients of trading costs, and the tradeoff between the speed of trading and the
cost of trading

We would hasten to add that you do not need to be a mathematical wizard to do any of these
and it is easy to acquire these basic tools.

Step 2: Develop a point of view about how markets work and where they might break down

Every investment philosophy is grounded in a point of view about human behavior

(and irrationality). While personal experience often determines how we view our fellow
human beings, we should expand this to consider broader evidence from markets on how
investors act before we make our final judgments.

Over the last few decades, it has become easy to test different investment strategies as
data becomes more accessible. There now exists a substantial body of research on the
investment strategies that have beaten the market over time. For instance, researchers have
found convincing evidence that stocks with low price to book value ratios have earned
significantly higher returns than stocks of equivalent risk but higher price to book value
ratios. It would be foolhardy not to review this evidence in the process of developing your
investment philosophy. At the same time, though, you should keep in mind three caveats
about this research:

Since they are based upon the past, they represent a look in the rearview mirror. Strategies
that earned substantial returns in the 1990s may no longer be viable strategies now. In fact, as
successful strategies get publicized either directly (in books and articles) or indirectly (by
portfolio managers trading on them), you should expect to see them become less effective.

Much of the research is based upon constructing hypothetical portfolios, where you buy and
sell stocks at historical prices and little or no attention is paid to transactions costs. To the
extent that trading can cause prices to move, the actual returns on strategies can be very
different from the returns on the hypothetical portfolio.
A test of an investment strategy is almost always a joint test of both the strategy and a model
for risk. To see why, consider the evidence that stocks with low price to book value ratios
earn higher returns than stocks with high price to book value ratios, with similar risk (at least
as measured by the models we use). To the extent that we mismeasure risk or ignore a key
component of risk, it is entirely possible that the higher returns are just a reward for the
greater risk associated with low price to book value stocks.

Since understanding whether a strategy beats the market is such a critical component of
investing, we will consider the approaches that are used to test a strategy, some basic rules
that need to be followed in doing these tests and common errors that are made
(unintentionally or intentionally) when running such tests. As we look at each investment
philosophy, we will review the evidence that is available on strategies that emerge from that
philosophy.

Step 3: Find the philosophy that provides the best fit for you

Once you understand the basics of investing form your views on human foibles and
behavior and review the evidence accumulated on each of the different investment
philosophies, you are ready to make your choice. In our view, there is potential for success
with almost every investment philosophy (yes, even charting) but the prerequisites for
success can vary. In particular, success may rest on:

Your risk aversion: Some strategies are inherently riskier than others. For instance, venture
capital or private equity investing, where you invest your funds in small, private businesses
that show promise is inherently more risky than buying value stocks – equity in large, stable,
publicly traded companies. The returns are also likely to be higher. However, more risk
averse investors should avoid the first strategy and focus on the second. Picking an
investment philosophy (and strategy) that requires you to take on more risk than you feel
comfortable taking can be hazardous to your health and your portfolio.

The size of your portfolio: Some strategies require larger portfolios for success whereas
others work only on a smaller scale. For instance, it is very difficult to be an activist value
investor if you have only $ 100,000 in your portfolio, since firms are unlikely to listen to your
complaints. On the other hand, a portfolio manager with $ 100 billion to invest may not be
able to adopt a strategy that requires buying small, neglected companies. With such a large
portfolio, she would very quickly end up becoming the dominant stockholder in each of the
companies and affecting the price every time she trade.

Your time horizon: Some investment philosophies are predicated on a long time horizon,
whereas others require much shorter time horizons. If you are investing your own funds, your
time horizon is determined by your personal characteristics – some of us are more patient
than others – and your needs for cash – the greater the need for liquidity, the shorter your
time horizon has to be. If you are a professional (an investment adviser or portfolio manager),
managing the funds of others, it is your clients time horizon and cash needs that will drive
your choice of investment philosophies and strategies.

Your tax status: Since such a significant portion of your money ends up going to the tax
collectors, they have a strong influence on your investment strategies and perhaps even the
investment philosophy you adopt. In some cases, you may have to abandon strategies that
you find attractive on a pre-tax basis because of the tax bite that they expose you to.

Thus, the right investment philosophy for you will reflect your particular strengths and
weaknesses. It should come as no surprise, then, that investment philosophies that work for
some investors do not work for others. Consequently, there can be no one investment
philosophy that can be labeled best for all investors.
Data Analysis and Interpretation
1. Qualification of the investors?

Table 1:-

Qualification Investors
Graduate/PG 58
Undergraduate 32
Others(Students etc) 10

Chart 1:-

70

60 58

50

40
32
30

20

10
10

0
Graduate/PG Undergraduate Others(Students etc)

Interpretation:-
Qualification of investor who are Graduate/PG are 58 , Undergraduate are 32 and other are
only 10 . We can say more graduate/PG people are investors
2. Occupation of the investors?

Table 2:-
Occupation No. of respondents
Govt. sector 27

Pvt. sector 38
Business 24

Agriculture 04
Others 07

Chart 2:-

38
40

35

30
27
24
25

20

15

10
7
4
5

0
Govt. Sector Pvt. Sector Business Agriculture Others

Interpretation:-
Occupation of investors pvt. Sector are 38 , govt. sector are 27 , business are 24 , agriculture
are 4 and others are 7. We can say more number of investors are from pvt. Sector.
3. Monthly income of the investors?

Table 3:-
Income No. of respondents
Up to Rs.10,000 2
Rs.10,001 to 15,000 4
Rs.15,000 to 20,000 11
Rs.20,000 to 30,000 17
Rs.30,001 and above 66

Chart 3:-

2% 4% Up to Rs.10,000
11%

Rs. 10,001 to
17% 15000
66%
Rs. 15,001 to
20,000
Rs. 20,001 to
30,000

Interpretation:-
Family income of investors Up to Rs.10,000 are only 2% , Rs.10,001 to 15,000 are only 4%
Rs.15,001 to 20,000 are only 11% , Rs.20,001 to 30,000 are only 17% and above 30,000 are
66%. We can say , the family income of investors are more than 30,000 , they are more
invest.
4. How many people are invest?

Table 4:-
Yes 96
No 4

Chart 4:-

4%

Yes

No

96%

Interpretation:-
96% of people are invest and 4% of people are not invest. We can say most of the people
invest.
5. Awareness of various investment options?

Table 5:-
Investment Fixed Real Mutual Pension PPF Gold Any
plan deposit estate fund plan other

No.of
respondents 45 60 53 65 40 58 62

Chart 5:-

70 65
62
60
58
60
53
50 45
40
40

30

20

10

0
fixed deposit real estate mutul fund pension plan PPF gold any other

(Define investments avenues)

Interpretation:-

From the above charts we can interpret that awareness of other option like fixed deposit is 45,
real estate is 60 , mutual fund is 53 , pension plan 65 , PPF 40,gold 58 and any 62 other plan
among the most of investors.
6. Investment in systematic investment plan?

Table 6:-
Yes 55

No 45

Chart 6:-

60

50

40

30

20

10

0
Yes No

Interpretation:-
55 people are invest in SIP and 45 people are not invest . we can say more people are invest
in SIP.
7. Reasons for investing in SIP?

Table 7:-
Capital prevention 55

Retirement 52

Children education 48

Income growth 54

Tax saving 55

Others 45

Chart 7:-

Others
15% Capital prevention
18%
Tax saving
18% Retirement
17%

Income growth Children education

17% 15%

Interpretation:-
People who invest for capital prevention are 55 , retirement are 52 , for children education are
48 , for income growth are 54 , for tax saving are 55 and for other are 45. We can say
different people invest according their needs and want.
8. If yes, in which assets class would you prefer to invest in Mutual Fund?

Table 8:-
TYPES OF SCHEMES RESPONSE PERCENTAGE

EQUITY 30 50.00%

DEBT 22 36.67%

LIQUID 8 13.33%

Chart 8:-

0.5

0.45

0.4

0.35

0.3 LIQUID
0.25 DEBT
0.2 EQUITY

0.15

0.1

0.05

0
EQUITY(50%) DEBT(36.67%) LIQUID(13,33%)

(Define schemes preferred by investors)

Interpretation: -

From the above chart it is getting clear that from 100 peoples sample 60(60%) people are
invest in Mutual fund and out of 30 (50%) people invests in equity assets class and
22(36.37%) people choose to invests in debt class but only just 8(13.33%) peoples choose to
invests in liquid class.
9. Do you invest in HDFC assets Management Company limited?

Table 9:-
YES NO TOTAL

56 44 100

Chart 9:-

60 56

50 44
NO OF PEOPLE

40

30 Series1

20

10

0
YES NO
PREFERNCE

(Define investment in HDFC assets Management Company)

Interpretation: -

From the above chart it is getting clear that out of 100 people sampled, 56 peoples are invest
in HDFC assets management company and 44 peoples are not invests in HDFC assets
management company.
10. Awareness of various schemes of HDFC?

Table 10:-
Schemes Of HDFC No. Of Investors

Equity Fund 43

Capital Builder Fund 2

Prudence Fund 17

Tax Saver Fund 35

Core And Satellite Fund 3

Top 200 Fund 16

Balanced Fund 1

Growth Fund 16

Others Fund 5

Chart 10:-
NO OF INVESTOERS

16 5
1 43
16

3 2
35 17

EQUITY FUND CAPITAL BUILDER FUND

PRUDENCE FUND TAX SAVER FUND
CORE AND SATELITE FUND TOP 200 FUND
BALANCED FUND GROWTH FUND
OTHERS FUND

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

Interpretation:
we can see that in HDFC assets Management Company’s EQUITY FUND maximum number
(43) of people are aware. In TAX SAVER FUND 35 number of people invests. In both TOP
200 FUND and GROWTH FUND 16 numbers of people are aware but in BALANCED
FUND, CAPITAL BUILDER FUND, CORE AND SATELITE FUND only 1, 2 and 3
people are aware.
11. By which medium you invest in HDFC assets Management Company
limited?

Table 11:-
MEDIUM OF INVESTMENT NO. OF PEOPLE

DISTRIBUTOR 8

BANK 48

ONLINE / SELF 0

Chart 11:-

NO OF PEOPLE

48
50
45
40
35
30
25
20 NO OF PEOPLE
15
10 8
5 0
0
DISTRIBUTOR ONLINE
MEDIUMS

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

Interpretation: -

From the above chart it’s getting cleared that most of the peoples (48) are invest by bank and
only 8 peoples are invest by distributors. Nobody invests through online. So here HDFC
assets Management Company has to provide facility by which investors invest their money
without any middle man in mutual fund schemes through online.

Note: - Here out of 100 respondents, 44 respondents are not investing in HDFC assets
Management Company. These responds are not considered in these questions.
12. Do you know about ongoing new fund offer of HDFC Assets
Management Company limited?

Table 12:-
AWARENESS OF NFO NUMBER PERCENTAGE

YES 58 58%

NO 42 42%

TOTAL 100 100%

Chart 12:-

NUMBER

42
YES
NO
58

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.
Conclusions

 Occupation, income level and qualification have impact on investors.

 Most of the people invest regularly.

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

 Lack of awareness is barrier for Systematic Investment Plan.

 Tax saving, children education, retirement etc scheme influence customer to invest in
SIP.
Recommendations
 The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits investing in mutual funds.

 The advisors should target for more and more young investors. Young investors as
well as persons at the height of their career would like to go for advisors due to lack
of expertise and time.

 The advisors may try to highlight some of the value added benefits of MFs such as tax
benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. These
benefits are not offered by other options single handed.

 Organisation should engage banks to sell the systematic investment plan to increase
the number of investors. Company should training to the bank and distributor staff
about systematic investment plan.
Questionnaire

NAME: -

ADDRESS: -

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

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

Graduation/PG Under Graduate Others

(b). What is occupation. Pl tick (√)

Govt. Ser Pvt. Ser Business Agriculture Others

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

Up to Rs. 10,001 to Rs. 15,001 to Rs. 20,001 to Rs. 30,001

Rs.10,000 15000 20,000 30,000 and above
(2) Are you aware Systematic Investment plan?

Yes No

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

Prefer?

Assets Management Co.

a. HDFC MF

b. UTI

c. Reliance

d. SBI

e. Kotak

f. ICICI

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

a. Fixed deposit b. Mutual fund

b. Pension plan c. PPF
d. Insurance e. Stock market
f. Gold g. Any other
(5) In which assets class do you want to invest in S I P in mutual funds?

Equity Debt Liquid

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

Yes No

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

Equity

Capital builder

Prudence fund

Tax saver

Top 200 fund

Balanced fund

Growth

Others
(8) Reasons for investing in SIP?

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

(9) By which medium have you invested?

Distributor Bank Online

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

Better fund house

Excellent customer service provider

Consistent return

Other

If other please specify

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

(a) No monthly imprest

(b) Not much aware

(c) Other better option

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

Yes No

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

Remarks if any other please specifies: -

Thank you for your time.

Bibliography
www.hdfcfund.com

www.the-finapolis.com

www.mutualfundsindia.com

www.valueresearchonline.com

www.moneycontrol.com

www.morningstar.com

www.yahoofinance.com

www.theeconomictimes.com

www.rediffmoney.com

www.bseindia.com

www.nseindia.com

www.investopedia.com

Journals & other references

HDFC AMC manual

The Economic Times

Business Standard

The Telegraph

Business India

Fact sheet and statements of various fund houses