HDFC Report

INTRODUCTION
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The Indian financial market is one of the fastest growing emerging
markets of the world, thanks to the new economic policy - liberalization,
deregulation and measures of restructuring - which has dismantled
entry barriers in the financial markets, allowed the entry of new players
and created an environment for efficient allocation of resources. The
major investors in the markets are the Individual Investors, Corporate
Sectors, Charitable Trusts, etc.
The individual investors are now aware about of the other sources of
the investment avenues rather than the traditional investment avenue.
They are aware about the modern investment avenues.
One of the important investment avenues in the financial market is the

‘Mutual Fund’. Through out the world, Mutual Funds have played a
significant role as far as an investment is concerned. Mutual Funds play
a pivotal role in transforming savings into investments and thereby
improving financial health of a country. One way to measure this role is
to analyze performance of mutual fund schemes. Also understanding of
mutual fund structure and advantages etc. is very important. A Mutual
Fund is the ideal instrument vehicle for today’s complex and modern
financial scenario. Mutual funds offer many benefits to the small
investors such as Diversification, liquidity, low transaction cost, low risk,
transparency, more options and more schemes, professional
management, flexibility, convenience to switch and many more.
Other than Mutual Funds, Bank Deposits, Post Office Schemes, RBI
Relief Bond, Public Provident Fund, Unit Trust of India, Life Insurance,
and Equity are the investment avenues where generally investors invest
their savings.
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The survey conducted to understand about the Mutual Fund as an
investment Avenue and also generate the awareness of mutual funds in
the minds of individual investors & corporate.
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COMPANY
DETAILS
MAN WITH A MISSION
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If ever there was a man with a mission it was
Hasmukhbhai Parekh, Founder and Chairman-
Emeritus, of HDFC Group who left this earthly
abode on November 18, 1994. Born in a traditional
banking family in Surat, Gujarat, Mr. Parekh started
his financial career at Harkisandass Lukhmidass – a
leading stock broking firm. The firm closed down in
the late seventies, but, long before that, he went on
to become a towering figure on the Indian financial
scene.
 In 1956 he began his lifelong financial affair with the

economic world, as General
 Manager of the newly formed Industrial Credit and

Investment Corporation of India (ICICI). He rose to become
Chairman and continued so till his retirement in 1972.
 At the ripe age of 60,

Hasmukhbhai started his
second dynamic life, even
more illustrious than his first.
His vision for mortgage
finance for housing gave
birth to the Housing
Development Finance
Corporation – it was a
trendsetter for housing
Mr. H.T. PAREKH is conferred finance in the whole Asian
the Padma Bhushan by the continent.
Government of India in the year
1992.
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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,
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d) Provide consistently high returns to shareholders, and
e) To grow through diversification by leveraging off the existing client

base.
Key group Companies and

their business
ℵ HDFC Reality
ℵ HDFC Bank
ℵ HDFC Standard Life Insurance
ℵ HDFC Mutual Fund
ℵ HDFC Chubb General Insurance
ℵ Credit Information Bureau (INDIA) Limited
ℵ HDFC Securities
ℵ HDFC Consultancy Services
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ℵ Intel net Global
HDFC REALTY
Profile
The property market in India abounds with possibilities and
potential but for the large part, it is still highly fragmented and
disorganized.
HDFCrealty.com is a / your new, organized electronic

marketplace for properties. We/ It provides the entire gamut of
real estate services, bringing together the "clicks world" and the
"bricks world" in a revolutionary and user-friendly way. Making
available the best guidance and the most professional,
transparent, efficient service to the real estate customer
HDFCrealty.com brings together India's most exhaustive

database of properties. It acts as a one-stop online hub for
information, comparative analyses, transactions, and market
reach and comprehensive professional services. For property
anywhere in India. For customers anywhere in the world
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HDFCrealty.com, Housing Development Finance Corporation
Limited (HDFC) has formed the company behind this site.
HDFC is India’s largest Housing Finance Company and is an

expert on the housing sector, property markets and the real
estate business.. This expertise and service orientation has
developed and strengthened over the last 22 years. Today
HDFC has an office network of 63 offices all over the country and
an overseas office in Dubai. HDFC has financed over 1.5 million
dwelling units with loan approvals and disbursements amounting
to Rs. 225 billion and Rs. 186 billion respectively.
HDFC Bank
Profile
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.
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
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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.
Business
HDFC Bank offers a wide range of commercial and transactional

banking services and treasury products to wholesale and retail
customers. The bank has three key business segments:
1. Wholesale Banking Services

2. Retail Banking Services
3. Treasury
HDFC Standard Life

Insurance
Profile
HDFC Standard Life Insurance Company Ltd. is one
of India’s leading private life insurance companies,
which offers a range of individual and group
insurance solutions. It is a joint venture between
Housing Development Finance Corporation Limited
(HDFC Ltd.), India’s leading housing finance
institution and The Standard Life Assurance Company, a leading
provider of financial services from the United Kingdom. Both the
promoters are well known for their ethical dealings and financial
strength and are thus committed to being a long-term player in the life
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insurance industry – all-important factors to consider when choosing
your insurer.
Vision
'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'.
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
Parentage
HDFC Limited.
HDFC is India’s leading housing finance institution and has helped build
more than 23, 00,000 houses since its incorporation in 1977.
Standard Life Assurance Company
Standard Life has been looking after the financial needs of customers
for more than 180 years. It currently has a customer base of over 7
11
million people who rely on the company for their insurance, pension,
investment, banking and health-care needs. Leader in the employee
benefit market in both the UK and Canada. Rated by Standard & Poor
as 'strong' with a rating of A+ and as 'good' with a rating of A1 by
Moody’s.
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HDFC Mutual Fund
VISION
To be a dominant player in the Indian
mutual fund space recognized for its
high levels of ethical and professional
conduct and a commitment towards
enhancing investor interests.
Sponsors
ℵ Housing Development Finance Corporation Limited (HDFC)
ℵ The Standard Life Assurance Company
Management
ℵ HDFC Trustee Company Limited
ℵ HDFC Asset Management Company Limited (AMC)
The present share holding pattern of the AMC is as

follows
PARTICULARS % OF THE PAID UP

SHARE CAPITAL
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HDFC 50.10
Standard Life 49.90
Investments Limited
HDFC Chubb General

Insurance Company Limited
HDFC CHUBB
With over one century of experience in the field of
non-life insurance from Chubb and HDFC's expertise
from the financial segment, HDFC Chubb General
Insurance Company Limited has the consumer insight
to make its product range world class and
comprehensive.
HDFC Chubb brings you Insurance solutions that you can rely on. Their
offerings are classified into three categories.
1. The categories comprise
2. Personal Insurance, Accident and Health Insurance and
3. Commercial Insurance.
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HDFC LTD
HDFC was incorporated in 1977 with two primary objectives - to

enhance housing stock in the country through housing finance
systematically and professionally and promote home
ownership. They also aim to increase the flow of resources to
the housing sector by integrating the housing finance sector
with the overall domestic financial markets. HDFC is also the
largest mobiliser of retail deposits in the private sector outside
the banking circle. Our deposits have been awarded the highest
safety credit rating 'FAAA' & 'MAAA' by CRISIL and ICRA
respectively for eight consecutive years.
CHUBB Corporation
With more than $30billion in assets, The Chubb Corporation is one of
the worlds largest, financially strongest, non-life insurance companies. It
is noted for its quality service and innovative insurance products geared
to meeting the changing needs of a broad range of customers in
diverse markets. Founded in New York in 1882, Chubb today provides
property and casualty insurance through more than 10,000 employees
in 32 countries of North America, South America and Asia. Chubb also
works closely with 5000 independent agents and brokers worldwide.
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Credit Information Bureau
(INDIA) Limited
Profile
Credit Information Bureau (India) Limited (CIBIL) was incorporated in
2000. CIBIL’s aim is to fulfill the need of credit granting institutions for
comprehensive credit information by collecting, collating and
disseminating credit information pertaining to both commercial and
consumer borrowers, to a closed user group of Members. Banks,
Financial Institutions, Non Banking Financial Companies, Housing
Finance Companies and Credit Card Companies use CIBIL’s services.
Data sharing is based on the Principle of Reciprocity, which means that
only Members who have submitted all their credit data, may access
Credit Information Reports from CIBIL. The relationship between CIBIL
and its Members is that of close interdependence.
Integral Solution
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The establishment of CIBIL is an effort made by the Government of
India and the Reserve Bank of India to improve the functionality and
stability of the Indian financial system by containing NPAs while
improving credit grantors’ portfolio quality. CIBIL provides a vital
service, which allows its Members to make informed, objective and
faster credit decisions.
MISSION Statement
To be the leader and trendsetter in India, in providing comprehensive
credit information services and related products conforming to global
standards, while adhering to the best practices in terms of
confidentiality, propriety and fair reporting, with a strong technology
orientation and seeking to afford the highest level of customer
satisfaction.
HDFC SECURITIES
Profile
HDFCsec is a brand brought to you by HDFC
Securities Ltd, which has been promoted by the
HDFC Bank & HDFC with the objective of
providing the diverse customer base of the
HDFC Group and other investors a capability to
transact in the Stock Exchanges &other financial
market transactions.
HDFCsec will equip you with the necessary tools to allocate, select and
manage your investments wisely, and also support it with the highest
standards of service, convenience and hassle-free trading tools.
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Mission Statement
Mission is to provide our customers with the most useful investment

guidance and investment-related services available in the country. We
want to become a one-stop solution for all your investment needs, one
that will help you get the most out of your money.
What HDFC SECURITIES

HDFC SECURITIES services comprise online buying and selling of
equity shares on the National Stock Exchange (NSE).
“HDFCsec helps you manage your money in every

possible way. We understand your time is valuable and
that convenience is important. So we’re here to provide
high quality investment services, in a simple, direct and
cost-effective way to help you achieve your financial
goals.”
HDFC Consultancy Services

HDFC is a unique example of a housing finance company, which has
demonstrated the viability of market-oriented housing finance in a
developing country. It is viewed as an innovative institution and a
market leader in the housing finance sector in India. The World Bank
considers HDFC a model private sector housing finance company in
developing countries and a provider of technical assistance for new and
existing institutions, in India and abroad. HDFC’s executives have
undertaken consultancy assignments related to housing finance and
urban development on behalf of multilateral agencies all over the world.
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HDFC has also served as consultant to international agencies such as
World Bank, United States’ Agency for International Development
(USAID), Asian Development Bank, United Nations’ Center for Human
Settlements, Commonwealth Development Corporation (CDC) and
United Nations’ Development Programmed (UNDP). HDFC has also
undertaken assignments for the United Nations’ Capital Development
Fund in Ethiopia, for the UNCHS in Nairobi, for USAID in Russia and
Bulgaria, and projects of the World Bank in Indonesia and Ghana.
At the national level, HDFC executives have played a key role in

formulating national housing policies and strategies. Recognizing
HDFC’s expertise, the Government of India has invited HDFC’s
executives to join a number of committees and task forces related to
housing finance, urban development and capital markets.
INTELENET GLOBAL
Profile
Two leading global investors - HDFC and Barclays - provide the
financial backing Intelenet needs to lead in a global marketplace. HDFC
is India's leading financial services conglomerate, while Barclays is a
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venerable financial services group headquartered in the United
Kingdom, ranking among the Top 10 banks in the world based on
market capitalization. At the same time, their combined financial
strength provides Intelenet with the ability to remain on the cutting edge
of BPO processes while simultaneously maintaining corporate growth
and achieving the goals and objectives set forth by our customers.
What intelenet global do

100% BPO FOCUS
Mission
To add value to our clients' business by providing cost-effective,

premium quality Customer Management services and be the preferred
vendor for off shored, outsourced BPO services.
Social Responsibilities
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The year 2004-05 saw HDFC making renewed efforts in fulfilling its
social commitment by way of several ongoing as well as new initiatives.
The latter included innovative financing of slum up-gradation and low-
income housing projects, dialoguing with key stakeholders on policy
issues, responding to the tsunami tidal wave disaster and staff
volunteering and participation in varied community development
activities.
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SWOT Analysis
Strength
ℵ Well-regained and reputed brand of HDFC.
ℵ Experience of Standard Life Investment.
ℵ Young and well qualified staff.
ℵ Well aware of customer need.
Weakness
ℵ Less marketing.
ℵ Presence of HDFC MF in very less places.
ℵ Comparatively very less staff and very heavy work load.
Opportunities
ℵ Day by day increasing knowledge about Mutual Fund.
ℵ Only instrument with proper corporate governance and

comparatively high return with lesser risk.
ℵ Rural market is totally untapped.
Threat
ℵ Presence of nationalized player like UTI and many more.
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ℵ Increase in competition and competitor.
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INDUSTRY
DETAILS
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Mutual Fund Sector And
Financial Market Overview
Mutual funds have played a significant role in financial intermediation,

the development of capital markets and the growth of the Indian
Economy. The Indian mutual fund industry has been no exception.
Though it is relatively new, it has grown at a dynamic speed, influencing
various sectors of the financial market and the national economy. The
Indian economy is under transition on account of the on going structural
adjustment programs and liberalization. The corporate sector and the
investment community play a major role in the markets today. Economic
transition is usually marked by changes in the market mechanics,
institutional integration, market regulations, relocation of savings and
investments and changes in inter-scrotal relationships. These changes
often include negativity and shake investors’ confidence in the capital
market. Mutual funds as efficient allocates of resources play a crucial
role in this transitional period. They have opened new vistas to
investors and imparted much needed liquidity to the system. In the
process, they have challenged the hitherto dominant role of commercial
banks in the financial market and national economy.
Mutual funds are dynamic financial institutions that play a crucial role in
an economy by mobilizing savings and investing them in the capital
markets, thus establishing a link between savings and capital market.
Therefore, the activities of mutual funds have both short and long term
impact on the savings and capital markets and the national economy.
They mobilize funds in the savings market and act as complementary to
banks.
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Emergence Of Mutual Fund
Mutual funds now represent perhaps the most appropriate investment
opportunity for most investors. As financial markets become more
sophisticated and complex, investors need a financial intermediary who
provides the required knowledge and professional expertise on
successful investing. It is no wonder then that in the birthplace of
mutual funds – the U.S.A. – the fund industry has already overtaken the
banking industry, more funds being under mutual fund management
than deposited with banks.
The Indian mutual fund industry has already started opening up many
of the exciting investment opportunities to Indian investors. We have
started witnessing the phenomenon of more savings now being
entrusted to the funds than to the banks. Despite the expected
continuing growth in the industry, mutual funds are still a new financial
intermediary in India.
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Place of Mutual Funds in
Financial Markets
Indian households started allocating more of their savings to the capital
markets in 1980s, with investments flowing into equity and debt
instruments, besides the conventional mode of bank deposits.
Until 1992, primary market investors were effectively assured good

returns, as the issue price of new equity issues was controlled and low.
After introduction of free pricing of shares, new issue prices were higher
and with greater volatility in the stock markets, many investors who
bought highly priced shares lost money, and withdrew from the markets
altogether. Even those investors who continued as
Direct investors in the stock markets realized that the key to successful
investing in the capital markets lay in building a diversified portfolio,
which in turn required substantial capital. Besides, selecting securities
with growth and income potential from the capital market involved
careful research and monitoring of the market, which was not possible
for all investors. Under similar circumstances in other countries, mutual
funds had emerged as professional intermediaries. Besides providing
the expertise in stock market investing, these funds allow investing in
small amounts and yet holding a diversified portfolio to limit risk, while
providing the potential for income and growth that is associated with the
debt and equity instruments. In India, Unit Trust of India occupied this
place as the only capital markets intermediary from 1964 until late
1987, when the Government started allowing other sponsors also to set
up mutual funds. With some ups and downs, this new class of
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intermediary institutions has emerged, in India as elsewhere, as a good
alternative to direct investing in capital markets.
Mutual Funds serve as a link between the saving public and the capital
markets, as they mobilize savings from investors and bring them to
borrowers in the capital markets.
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Concept of Mutual Fund:
Summary
A mutual fund is a common pool of money into which investors place
their contributions that are to be invested in accordance with a stated
objective. The ownership of the fund is thus joint or “mutual”; the fund
belongs to all investors. He or her bears in the same proportion as the
amount of the contribution make a single investor’s ownership of the
fund to the total amount of the fund.
A mutual fund uses the money collected from investors to buy those
assets, which are specifically permitted by its stated investment
objective. Thus, an equity fund would buy mainly equity assets –
ordinary shares, preference shares, warrants etc. A bond fund would
mainly buy debt instruments such as debentures, bonds, or government
securities. It is these assets, which are owned by the investors in the
same proportion as their contribution bears to the total contributions of
all investors put together.
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COMPETITORS
DETAILS
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Mutual Fund Player In
India
A) Bank Sponsored
1. Joint Ventures - Predominantly Indian
a. SBI Funds Management Private Ltd.
2. Others
a. BOB Asset Management Co. Ltd.
b. Can bank Investment Management Services Ltd.
c. UTI Asset Management Co. Private Ltd.
B) Institutions
a. Jeevan Bima Sahayog Asset Management Co. Ltd.
C) Private Sector
1. Indian
a. Benchmark Asset Management Co. Private Ltd.
b. Cholamandalam Asset Management Co. Ltd.
c. Credit Capital Asset Management Co. Ltd.
d. Escorts Asset Management Ltd.
e. J. M. Financial Asset Management Private Ltd.
f. Kotak Mahindra Asset Management Co. Ltd.
g. Reliance Capital Asset Management Ltd.
h. Sahara Asset Management Co. Private Ltd
i. Sundaram Asset Management Co. Ltd.
j. Tata Asset Management Ltd.
2. Joint Ventures - Predominantly Indian
a. Birla Sun Life Asset Management Co. Ltd.
b. DSP Merrill Lynch Fund Managers Ltd.
c. HDFC Asset Management Co. Ltd.
d. Prudential ICICI Asset Management Co. Ltd.
3. Joint Ventures - Predominantly Foreign
a. ABN AMRO Asset Management (India) Ltd.
b. Deutsche Asset Management (India) Private Ltd.
c. Fidelity Fund Management Private Ltd.
d. Franklin Templeton Asset Management (India) Private Ltd.
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e. HSBC Asset Management (India) Private Ltd.
f. ING Investment Management (India) Private Ltd.
g. Morgan Stanley Investment Management Private Ltd.
h. Principal Pnb Asset Management Co. Private Ltd.
i. Standard Chartered Asset Management Co. Private Ltd.
AUM OF COMPETITORS
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Assets Under Management (AUM) as at the end of Feb-2006 (Rs in Lakhs)
REGULATROY
Average AUM For The
AUM
Month
Mutual Fund Name
Excluding Excluding
Fund Of Fund Of
ENVIRONMENT
Fund Of Fund Of
Funds Funds
Funds Funds
1. ABN AMRO Mutual Fund 307401.78 0 294394.15 0
2. Benchmark Mutual Fund 96154.29 0 0
DETAILS
3. Birla Sun Life Mutual
1229567.8 2214.97 0
Fund
4. BOB Mutual Fund 16086.69 0 0
5. Can bank Mutual Fund 292803.03 0 285732.35 0
6. Chola Mutual Fund 189609.82 0 0 0
7. Deutsche Mutual Fund 268426.04 0 275141.94 0
8. DSP Merrill Lynch
995316.22 0 0
Mutual Fund
9. Escorts Mutual Fund 16253.85 0 0
10. Fidelity Mutual Fund 298476.72 6098.08 294759.13 5281.52
11. Franklin Templeton
1799634.31 38459.31 1810251.23 38321.47
Mutual Fund
12. HDFC Mutual Fund 2012162.62 0 1993357.05 0
13. HSBC Mutual Fund 906041.96 0 904766.43 0
14. ING Vysya Mutual Fund 192205.91 0 0
15. JM Financial Mutual
360249.19 0 0
Fund
16. Kotak Mahindra Mutual
782165.04 51312.36 772800.56 50690.9
Fund
17. LIC Mutual Fund 723932.06 0 0
18. Morgan Stanley Mutual
260283.97 0 254479.13 0
Fund
19. PRINCIPAL Mutual
693529.86 0 0
Fund
20. Prudential ICICI Mutual
2136649.99 4621.34 0
Fund
21. Reliance Mutual Fund 1685928.32 0 0
22. Sahara Mutual Fund 32750.34 0 33578.84 0
23. SBI Mutual Fund 1289213.82 0 1320080.51 0
24. Standard Chartered
1181321.66 4408.68 0
Mutual Fund
25. Sundaram Mutual Fund 324969.66 0 344641.09 0
26. Tata Mutual Fund 872429.36 0 0
27. Taurus Mutual Fund 21734.89 0 21584.28 0
28. UTI Mutual Fund 2761883.26 0 2751832.55 034
Total 21747182.46 107114.74 11357399.24 94293.89
Regulators in India
AMFI (Association of Mutual Fund in India)
 AMFI not a Self Regulatory Organization (SRO).

 It’s made to promote mutual fund in the masses and give
recommendation in order to uphold the interest of the investor.
SEBI (Security Exchange Board of India)
Securities and Exchange Board of India ("SEBI"), the Capital Markets

regulator has clearly defined rules, which govern mutual funds. These
rules relate to the formation, administration and management of mutual
funds and also prescribe disclosure and accounting requirements. Such
a high level of regulation seeks to protect the interest of investors.
All Mutual Funds are registered with SEBI and they function within the
provision of strict regulations designed to protect the interests of
investors. The operations of Mutual Funds are regularly monitored by
SEBI.
RBI (Reserve Bank of India)
Reserve bank of India was the regulator of Mutual Fund before SEBI. It
regulated mutual fund initially and there were only few schemes in the
market. But now with coming of SEBI, it has now become the main
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regulator of the Mutual Fund. RBI now only governs Bank Sponsored
Mutual Fund.
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Investors Rights
 Proportionate right to beneficial ownership of scheme’s
assets
 Right to obtain information from trustees
 Entitled to receive dividend warrants within 30 days of
declaration of dividend
 Inspect major documents of the fund
 Appointment of the AMC can be terminated by 75% of the
unit holders of the scheme present and voting
 Right to approve of changes in fundamental attributes of a
close ended scheme (75 % of unit holders should approve) - right
to be informed so in open ended schemes so that they can
redeem
 Right to receive a copy of annual financial statements of
fund and periodic transaction statements
 75% of the unit holders can resolve to wind up the
scheme
Legal Limitations to Investors Rights

 Unit holders can not sue the trust
 Can initiate legal proceedings against trustees
 Sponsor of mutual funds have no obligation to meet any
shortfall in the assured return - unless explicitly guaranteed in the
offer document
 No rights to a prospective investor
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Investors obligations
 Carefully study the offer document before investing

 Monitor his investment in a scheme by referring financial
statements, performance updates and research reports sent by the
AMC
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ORGANIZATIONAL
STUDY
39
MARKETING
DEPARTMENT
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Marketing Scenario
The last few years have seen an increased attention to mutual funds
across all genres of investors’ big or small, individuals or corporate. The
growing awareness of the advantages that mutual funds offer over
other investments avenues have been better communicated and more
understood
A mutual fund is the ideal investment vehicle for today’s complex and
modern financial scenario. Markets for equity shares, bonds and other
fixed income instruments, real estate, derivatives and other assets have
become mature and information driven. Price changes in these assets
are driven by global events occurring in faraway places. A typical
individual is unlikely to have the knowledge, skills, inclination and time
to keep track of events, understand their implications and act speedily.
A mutual fund is answer to all these situations. It appoints professionally

qualified and experienced staff that manages each of these functions
on a fulltime basis. Now, Mutual Fund is new developing market. In fact,
the mutual fund vehicle exploits economies of scale in all three areas –
research, investment and transaction processing.
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Market Segmentation
Market segmentation is an effort to increase a company’s precision
marketing. A market segment consists of large identifiable group within
a market with similar wants, purchasing power, buying attitudes or
buying habits. As HDFC mutual fund is a service sector industry they
introduce different schemes for different people. Each person is
different in nature and each have differ criteria for investment like risk
factor, return, liquidity, tax benefits etc.
So that HDFC Asset management company have introduced varieties

of scheme like debt scheme, balanced scheme, equity related scheme
and each schemes have option to invest in SIP (Systematic Investment
Plan) which help investor to invest a specific amount for a continuous
period, at regular intervals so that investor has the advantage of rupee
cost averaging and also helps him save compulsorily a fixed amount
each amount.
Target Market
HDFC Asset Management Company is a joint venture of HDFC BANK
(50.10%) and Standard Life Investment Limited (49.90%). The joint
venture was formed with the key objective of providing the Indian
investor mutual fund products to suit a variety of investment needs.
HDFC Asset Management Company, have variety of scheme both open

ended and close ended scheme. Both have different objective and
different target market. Equity Mutual Fund Scheme has target
market of person who wants to take high risk and also expect high
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return. Balanced scheme have target market of person who wants
to take moderate risk and expect average return and Debt scheme
have target market of person who wants to take less risk. Close-
ended scheme have target market of person who wants long-term
equity investment.
Customers’ Profile
HDFC Asset Management Company, have variety scheme and each
scheme have different customer profile.
For Equity related scheme customer profile is young generation, for

liquid scheme customer profile is business man who wants to utilize
their money in effective manner for shorter period, in SIP (Systematic
Investment Plan) customer basically are serviced person who invest
regularly and want to earn more than average return. Thus, HDFC
Asset Management Company, have introduced variety of scheme to
suit need of variety of customer.
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Positioning Strategy
“Positioning is the act of designing the company’s offering and image to

occupy a distinctive place in the target market’s mind.”
Positioning starts with a product. A piece of merchandise, a service, a

company, an institution, or even a person. But positioning is not what
you do to a product. Positioning is what you do 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. Once the company
has developed a clear positioning strategy, it must communicate that
positioning effectively. There should be no under positioning, over
positioning, confused positioning or doubtful positioning.
HDFC Asset Management Company, have positioning strategy of

“Continuing a Tradition of Trust”. It is accurate positioning strategy
44
because it signifies a trust with its clients. Here is special Relationship
Manager dedicated towards customer service and satisfaction and give
them guidance about various schemes which helps them to get right
scheme which suit their investment needs. In this way it continues to
maintain a trust with its clients.
Product Details
45
46
What is a Mutual Fund?
A mutual fund is a common pool of money in to which investors

with common investment objective place their contributions that
are to be invested in accordance with the stated investment
objective of the scheme. The investment manager would invest the
money collected from the investor in to assets that are defined/
permitted by the stated objective of the scheme. For example, an
equity fund would invest equity and equity related instruments and
a debt fund would invest in bonds, debentures, gilts etc.
Invest / Pool
Their Money
Profit / Loss From
Portfolio of Investment
Invest in number
Of Stocks & Bonds
Profit / Loss From
Individual Investment
47
Mutual fund is a mechanism for pooling the resources by issuing units
to the investors and investing funds in securities in accordance with
objectives as disclosed in offer document.
Investments in securities are spread across a wide cross-section of

industries and sectors and thus the risk is reduced. Diversification
reduces the risk because all stocks may not move in the same direction
in the same proportion at the same time. Mutual fund issues units to the
investors in accordance with quantum of money invested by them.
Investors of mutual funds are known as unit holders.
The investors in proportion to their investments share the profits or

losses. The mutual funds normally come out with a number of schemes
with different investment objectives, which are launched from time to
time. A mutual fund is required to be registered with Securities and
Exchange Board of India (SEBI), which regulates securities markets
before it can collect funds from the public.
48
History of the Indian Mutual
Fund Industry in India
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 the. The history
of mutual funds in India can be broadly divided into four
distinct phases.
First Phase – 1964-87

An Act of Parliament established Unit Trust of India (UTI) on 1963. It
was set up by the Reserve Bank of India and functioned under the
Regulatory and administrative control of the Reserve Bank of India. In
1978 UTI was de-linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control
in place of RBI. The first scheme launched by UTI was Unit Scheme
1964. At the end of 1988 UTI had Rs.
6, 700 crores of assets under management.
Second Phase – 1987-1993 (Entry of Public

Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by
public sector banks and Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC). SBI Mutual Fund was the
49
first non- UTI Mutual Fund established in June 1987 followed by Can
bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug
89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of
Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June
1989 while GIC had set up its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under
management of Rs.47, 004 crores.
Third Phase – 1993-2003 (Entry of Private

Sector Funds)
With the entry of private sector funds in 1993, a new era started in the
Indian mutual fund industry, giving the Indian investors a wider choice
of fund families. Also, 1993 was the year in which the first Mutual Fund
Regulations came into being, under which all mutual funds, except UTI
were to be registered and governed. The erstwhile Kothari Pioneer
(now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The
industry now functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many

foreign mutual funds setting up funds in India and also the industry has
witnessed several mergers and acquisitions. As at the end of January
2003, there were 33 mutual funds with total assets of Rs. 1, 21,805
crores. The Unit Trust of India with Rs.44, 541 crores of assets under
management was way ahead of other mutual funds.
Fourth Phase – since February 2003
50
In February 2003, following the repeal of the Unit Trust of India Act
1963 UTI was bifurcated into two separate entities. One is the Specified
Undertaking of the Unit Trust of India with assets under management of
Rs.29,835 crores as at the end of January 2003, representing broadly,
the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and
does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB
and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in
March 2000 more than Rs.76, 000 crores of assets under management
and with the setting up of a UTI Mutual Fund, conforming to the SEBI
Mutual Fund Regulations, and with recent mergers taking place among
different private sector funds, the mutual fund industry has entered its
current phase of consolidation and growth. As at the end of September
2004, there were 29 funds, which manage assets of Rs.153108 crores
under 421 schemes.
The graph indicates the growth of assets over

the years.
51
Structure of Mutual Fund
52
53
The Structure Consists of
Sponsor
Sponsor is the person who acting alone or in combination with another
body corporate establishes a mutual fund. Sponsor must contribute at
least 40% of the net worth of the Investment Managed and meet the
eligibility criteria prescribed under the Securities and Exchange Board
of India (Mutual Funds) Regulations, 1996.The Sponsor is not
responsible or liable for any loss or shortfall resulting from the operation
of the Schemes beyond the initial contribution made by it towards
setting up of the Mutual Fund.
Trust
The Mutual Fund is constituted as a trust in accordance with the
provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust
deed is registered under the Indian Registration Act, 1908.
Trustee
Trustee is usually a company (corporate body) or a Board of Trustees
(body of individuals). The main responsibility of the Trustee is to
safeguard the interest of the unit holders and inter alia ensure that the
AMC functions in the interest of investors and in accordance with the
Securities and Exchange Board of India (Mutual Funds) Regulations,
1996, the provisions of the Trust Deed and the Offer Documents of the
respective Schemes. At least 2/3rd directors of the Trustee are
independent directors who are not associated with the Sponsor in any
manner.
54
Asset Management Company (AMC)
The Trustee as the Investment Manager of the Mutual Fund appoints
the AMC. The AMC is required to be approved by the Securities and
Exchange Board of India (SEBI) to act as an asset management
company of the Mutual Fund. At least 50% of the directors of the AMC
are independent directors who are not associated with the Sponsor in
any manner. The AMC must have a net worth of at least 10 crores at all
times.
Registrar and Transfer Agent

The AMC if so authorized by the Trust Deed appoints the Registrar and
Transfer Agent to the Mutual Fund. The Registrar processes the
application form; redemption requests and dispatches account
statements to the unit holders. The Registrar and Transfer agent also
handles communications with investors and updates investor records.
55
Benefits of Investing
through Mutual Funds
There are numerous benefits of investing in mutual

funds and one of the key reasons for its phenomenal
success in the developed markets like US and UK is the
56
range of benefits they offer, which are unmatched by
most other investment avenues. The benefits have been
broadly split into universal benefits, applicable to all
schemes and benefits applicable specifically to open-
ended schemes.
57
Affordability
A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc.

depending upon the investment objective of the scheme. An investor
can buy in to a portfolio of equities, which would otherwise be extremely
expensive. Each unit holder thus gets an exposure to such portfolios
with an investment as modest as Rs.5000/-. This amount today would
get you less than quarter of an Infosys share! Thus it would be
affordable for an investor to build a portfolio of investments through a
mutual fund rather than investing directly in the stock market.
Diversification
The nuclear weapon in your arsenal for your fight against Risk. It simply
means that you must spread your investment across different securities
(stocks, bonds, money market instruments, real estate, fixed deposits
etc.) and different sectors (auto, textile, information technology etc.).
This kind of a diversification may add to the stability of your returns, for
example during one period of time equities might under performs but
bonds and money market instruments might do well enough to offset
the effect of a slump in the equity markets. Similarly the information
technology sector might be faring poorly but the auto and textile sectors
might do well and may protect your principal investment as well as help
you meet your return objectives.
Variety
Mutual funds offer a tremendous variety of schemes. This variety is
beneficial in two ways: first, it offers different types of schemes to
investors with different needs and risk appetites; secondly, it offers an
opportunity to an investor to invest sums across a variety of schemes,
both debt and equity. For example, an investor can invest his money in
a Growth Fund (equity scheme) and Income Fund (debt scheme)
58
depending on his risk appetite and thus create a balanced portfolio
easily or simply just buy a Balanced Scheme.
Professional Management
Qualified investment professionals who seek to maximize returns and
minimize risk monitor investor's money. When you buy in to a mutual
fund, you are handing your money to an investment professional that
has experience in making investment decisions. It is the Fund
Manager's job to (a) find the best securities for the fund, given the
fund's stated investment objectives; and (b) keep track of investments
and changes in market conditions and adjust the mix of the portfolio, as
and when required.
Tax Benefits
Any income distributed after March 31, 2002 will be subject to tax in the
assessment of all Unit holders. However, as a measure of concession
to Unit holders of open-ended equity-oriented funds, income
distributions for the year ending March 31, 2003, will be taxed at a
concessional rate of 10.5%.
In case of Individuals and Hindu Undivided Families a deduction up to

Rs. 9,000 from the Total Income will be admissible in respect of income
from investments specified in Section 80L, including income from Units
of the Mutual Fund. Units of the schemes are not subject to Wealth-Tax
and Gift-Tax.
Regulations
Securities Exchange Board of India (“SEBI”), the mutual funds regulator
has clearly defined rules, which govern mutual funds. These rules relate
to the formation, administration and management of mutual funds and
59
also prescribe disclosure and accounting requirements. Such a high
level of regulation seeks to protect the interest of investors.
Disadvantages of Mutual
Funds
No control over costs:
The funds are managed in huge volume and so the control on

expenses cannot be exercised, as there is lot of formalities and
administrative expenses attached. Though the limit of incurring
expenses is predetermined but still it cannot be kept in control.
No tailor made portfolio:
There is no tailor made portfolio available to any individual. The

products and scheme that is designed by the fund managers is on their
philosophy and is floated in the market with a common goal. No
individual can have their own portfolio maintained separately from the
other investors.
Delay in redemption:
The redemption of the funds though has liquidity in 24-hours to 3 days

takes formal application of redemption as well as needs time for
redemption. This becomes cumbersome for the investors.
60
Non-availability of loans:
Mutual funds are not accepted as security against loan. The investor
cannot deposit the mutual funds against taking any kind of bank loans
though they may be his assets.
Risk in Investing through

Mutual Fund
61
The Risk-Return Trade-off
62
The most important relationship to understand is the risk-return trade-
off. Higher the risk greater the returns/loss and lower the risk lesser the
returns/loss.
Hence it is up to investor, the investor to decide how much risk

individual is willing to take. In order to do this investor must first be
aware of the different types of risks involved with particular investment
decision.
Market Risk
Sometimes prices and yields of all securities rise and fall. Broad outside
influences affecting the market in general lead to this. This is true, may
it be big corporations or smaller mid-sized companies. This is known as
Market Risk. A Systematic Investment Plan (“SIP”) that works on the
concept of Rupee Cost Averaging (“RCA”) might help mitigate this
risk.
Credit Risk
The debt servicing ability (may it be interest payments or repayment of
principal) of a company through its cash flows determines the Credit
Risk faced by you. This credit risk is measured by independent rating
agencies like CRISIL who rate companies and their paper. An ‘AAA’
rating is considered the safest whereas a ‘D’ rating is considered poor
credit quality. A well-diversified portfolio might help mitigate this risk.
Inflation Risk
Inflation is the loss of purchasing power over time. A lot of times people
make conservative investment decisions to protect their capital but end
up with a sum of money that can buy less than what the principal could
at the time of the investment. This happens when inflation grows faster
63
than the return on your investment. A well-diversified portfolio with
some investment in equities might help mitigate this risk.
Interest Rate Risk

In a free market economy interest rates are difficult if not impossible to
predict. Changes in interest rates affect the prices of bonds as well as
equities. If interest rates rise the prices of bonds fall and vice versa.
Equity might be negatively affected as well in a rising interest rate
environment. A well-diversified portfolio might help mitigate this risk.
Political/Government Policy Risk

Changes in government policy and political decision can change the
investment environment. They can create a favorable environment for
investment or vice versa.
Liquidity Risk
Liquidity risk arises when it becomes difficult to sell the securities that
one has purchased. Liquidity Risk can be partly mitigated by
diversification, staggering of maturities as well as internal risk controls
that lean towards purchase of liquid securities.
64
Types of Schemes in Mutual
Fund
65
A. Investment Objective
Schemes can be classified by way of their stated investment objective
such as Growth Fund, Balanced Fund, and Income Fund etc.
 Equity Oriented Schemes

These schemes, also commonly called Growth Schemes, seek to invest
a majority of their funds in equities and a small portion in money market
instruments. Such schemes have the potential to deliver superior
returns over the long term. However, because they invest in equities,
these schemes are exposed to fluctuations in value especially in the
short term.
Equity schemes are hence not suitable for investors seeking regular
income or needing to use their investments in the short-term. They are
ideal for investors who have a long-term investment horizon. The NAV
prices of equity fund fluctuates with market value of the underlying stock
which are influenced by external factors such as social, political as well
as economic.
66
A. General Purpose
The investment objectives of general-purpose equity schemes do not
restrict them to invest in specific industries or sectors. They thus have a
diversified portfolio of companies across a large spectrum of industries.
While they are exposed to equity price risks, diversified general-
purpose equity funds seek to reduce the sector or stock specific risks
through diversification. They mainly have market risk exposure. HDFC
Growth Fund is a general-purpose equity scheme.
B. Sector Specific
These schemes restrict their investing to one or more pre-defined
sectors, e.g. technology sector. Since they depend upon the
performance of select sectors only, these schemes are inherently more
67
risky than general-purpose schemes. They are suited for informed
investors who wish to take a view and risk on the concerned sector.
C. Special Schemes
Index schemes
The primary purpose of an Index is to serve as a measure of the

performance of the market as a whole, or a specific sector of the
market. An Index also serves as a relevant benchmark to evaluate the
performance of mutual funds. Some investors are interested in
investing in the market in general rather than investing in any specific
fund. Such investors are happy to receive the returns posted by the
markets. As it is not practical to invest in each and every stock in the
market in proportion to its size, these investors are comfortable
investing in a fund that they believe is a good representative of the
entire market. Index Funds are launched and managed for such
investors. An example to such a fund is the HDFC Index Fund.
Tax saving schemes

Investors (individuals and Hindu Undivided Families (“HUFs”)) are being
encouraged to invest in equity markets through Equity Linked Savings
Scheme (“ELSS”) by offering them a tax rebate. Units purchased
cannot be assigned / transferred/ pledged / redeemed / switched – out
until completion of 3 years from the date of allotment of the respective
Units.
The Scheme is subject to Securities & Exchange Board of India (Mutual

Funds) Regulations, 1996 and the notifications issued by the Ministry of
Finance (Department of Economic Affairs), Government of India
regarding ELSS.
68
Subject to such conditions and limitations, as prescribed under Section
88 of the Income-tax Act, 1961, subscriptions to the Units not
exceeding Rs.10, 000 would be eligible to a deduction, from income
tax, of an amount equal to 20% of the amount subscribed. HDFC Tax
Plan 2000 is such a fund.
Real Estate Funds
Specialized real estate funds would invest in real estates directly, or

may fund real estate developers or lend to them directly or buy shares
of housing finance companies or may even buy their securitized assets.
69
 Debt Based Schemes
These schemes, also commonly called Income Schemes, invest in debt

securities such as corporate bonds, debentures and government
securities. The prices of these schemes tend to be more stable
compared with equity schemes and most of the returns to the investors
are generated through dividends or steady capital appreciation. These
schemes are ideal for conservative investors or those not in a position
to take higher equity risks, such as retired individuals. However, as
compared to the money market schemes they do have a higher price
fluctuation risk and compared to a Gilt fund they have a higher credit
risk.
70
A. Income Schemes
These schemes invest in money markets, bonds and debentures of

corporate with medium and long-term maturities. These schemes
primarily target current income instead of capital appreciation. They
therefore distribute a substantial part of their distributable surplus to the
investor by way of dividend distribution. Such schemes usually declare
quarterly dividends and are suitable for conservative investors who
have medium to long term investment horizon and are looking for
regular income through dividend or steady capital appreciation. HDFC
Income Fund, HDFC Short Term Plan and HDFC Fixed Investment
Plans are examples of bond schemes.
B. Liquid Income Schemes
Similar to the Income scheme but with a shorter maturity than Income
schemes. An example of this scheme is the HDFC Liquid Fund.
C. Money Market Schemes
These schemes invest in short term instruments such as commercial

paper (“CP”), certificates of deposit (“CD”), treasury bills (“T-Bill”) and
overnight money (“Call”). The schemes are the least volatile of all the
types of schemes because of their investments in money market
instrument with short-term maturities. These schemes have become
popular with institutional investors and high net worth individuals having
short-term surplus funds.
D. Gilt Funds
This scheme primarily invests in Government Debt. Hence the investor

usually does not have to worry about credit risk since Government Debt
71
is generally credit risk free. HDFC Gilt Fund is an example of such a
scheme.
 Hybrid Schemes
These schemes are commonly known as balanced schemes. These

schemes invest in both equities as well as debt. By investing in a mix of
this nature, balanced schemes seek to attain the objective of income
and moderate capital appreciation and are ideal for investors with a
conservative, long-term orientation. HDFC Balanced Fund and HDFC
Children’s Gift Fund are examples of hybrid schemes.
B. Constitution
Schemes can be classified as Closed-ended or Open-ended depending
upon whether they give the investor the option to redeem at any time
(open-ended) or whether the investor has to wait till maturity of the
scheme.
 Open ended Schemes
The units offered by these schemes are available for sale and
repurchase on any business day at NAV based prices. Hence, the unit
capital of the schemes keeps changing each day. Such schemes thus
offer very high liquidity to investors and are becoming increasingly
popular in India. Please note that an open-ended fund is NOT obliged
to keep selling/issuing new units at all times, and may stop issuing
further subscription to new investors. On the other hand, an open-
72
ended fund rarely denies to its investor the facility to redeem existing
units.
 Closed ended Schemes
The unit capital of a close-ended product is fixed as it makes a one-time

sale of fixed number of units. These schemes are launched with an
initial public offer (IPO) with a stated maturity period after which the
units are fully redeemed at NAV linked prices. In the interim, investors
can buy or sell units on the stock exchanges where they are listed.
Unlike open-ended schemes, the unit capital in closed-ended schemes
usually remains unchanged. After an initial closed period, the scheme
may offer direct repurchase facility to the investors. Closed-ended
schemes are usually more illiquid as compared to open-ended schemes
and hence trade at a discount to the NAV. This discount tends towards
the NAV closer to the maturity date of the scheme.
 Interval Schemes
These schemes combine the features of open-ended and closed-ended

schemes. They may be traded on the stock exchange or may be open
for sale or redemption during pre-determined intervals at NAV based
prices.
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Product Portfolio
74
Investment Strategy
INVESTMENT PROTECTION VS. INVESTMENT
GROWTH
Investor Investment Investment
Characteristic Growth Protection
Time Horizon Short-term Long-term
Future Income Steady / High Variable / Low
Requirements
Volatility Limit Low High
(Risk Averseness)
Inflation Protection Low Protection High Protection
Needed Needed
Investor take on Mostly Bearish Mostly Bullish
Equity Market
If you are a person who broadly falls into the Investment Growth
category you might be interested in looking at an Aggressive portfolio.
On the other hand if you are leaning towards an interest income with
minimal risk investments you might look at a Conservative asset
allocation. Someone who wants a bit of steady income as well as asset
growth might go in for a moderate or a balanced asset allocation.
AGGRESSIVE PORTFOLIO
75
MODERATE PORTFOLIO
CONSERVATIVE PORTFOLIO
Another way to ascertain the right asset allocation is by looking at your

life cycle. The basis of this theory lies in the simple maxim that younger
people with secure jobs will normally opt for higher returns and take
higher risks compared to older retired people. One must remember that
these are only indicative strategies and will probably have to be fine-
tuned to meet your individual needs.
76
Portfolio Strategy
AGE MAIN OBJECTIVES PORTFOLIO STRATEGY

20-29 Aggressive Growth – Sow the 50% - Growth Funds
seeds, plan for housing and 30% - Balanced Funds
create a safety cushion 20% - Money Markets / Cash
30-39 Growth – Save for housing, 45% - Growth Funds
children’s expenses (present 30% - Balanced Funds
and future – education etc.) 05% - Blue Chip Stocks
and safety cushion 20% - Money Markets / Cash
40-49 Growth – Children’s expenses 40% - Growth Funds
(present and future – education 30% - Balanced Funds
etc.) and safety cushion 10% - Blue Chip Stocks
20% - Money Markets / Cash
50-59 Retirement – Save for 30% - Growth Funds
retirement and build on safety 40% - Balanced Funds
cushion 10% - Blue Chip Stocks
60-69 Safety – Preserve investments/ 10% - Balanced Funds
savings and opt for minimal 15% - Income Funds
growth 10% - Blue Chip Stocks
20% - Dividend Stocks
30% - Certificates of Deposits
(Shorter-term)
70- Safety – Preserve investments/ 30% - Income Funds
savings 25% - Dividend Stocks
35% - Certificates of Deposits
(Shorter-term)
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HDFC Mutual Fund Products
 Equity Funds
 HDFC Growth Fund

 HDFC Long Term Advantage Fund
 HDFC Index Fund
 HDFC Equity Fund
 HDFC Capital Builder Fund
 HDFC Tax saver
 HDFC Top 200 Fund
 HDFC Core & Satellite Fund
 HDFC Premier Multi-Cap Fund
 HDFC Long Term Equity Fund
 Balanced Funds
 HDFC Children's Gift Fund Investment Plan
 HDFC Children's Gift Fund Savings Plan
 HDFC Balanced Fund

 HDFC Prudence Fund
78
 Debt Funds
 HDFC Income Fund

 HDFC Liquid Fund
 HDFC Gilt Fund Short Term Plan
 HDFC Gilt Fund Long Term Plan
 HDFC Short Term Plan
 HDFC Floating Rate Income Fund Short Term Plan
 HDFC Floating Rate Income Fund Long Term Plan
 HDFC Liquid Fund - PREMIUM PLAN
 HDFC Liquid Fund - PREMIUM PLUS PLAN
 HDFC Short Term Plan - PREMIUM PLAN
 HDFC Short Term Plan - PREMIUM PLUS PLAN
 HDFC Income Fund Premium Plan
 HDFC Income Fund Premium plus Plan
 HDFC High Interest Fund
 HDFC High Interest Fund - Short Term Plan
 HDFC Sovereign Gilt Fund - Savings Plan
 HDFC Sovereign Gilt Fund - Investment Plan
 HDFC Sovereign Gilt Fund - Provident Plan
 HDFC Cash Management Fund - Savings Plan
 HDFC Cash Management Fund - Call Plan
 HDFCMF Monthly Income Plan - Short Term Plan
 HDFCMF Monthly Income Plan - Long Term Plan
 HDFC Cash Management Fund - Savings Plus Plan
79
 HDFC Multiple Yield Fund
 HDFC Multiple Yield Fund Plan 2005
80
81
Distribution channel
Individual Agents
Use of agents has been the most widely prevalent practice for
distribution of funds over the years. By definition an agent acts on
behalf of principal in this case of mutual funds. An agent is
essentially a broker between the fund and the investor. In India we
also have the unique system where by a broker has a number of
sub brokers working under him. The vast sub broker network
ensures a large geographic coverage then otherwise.
Distribution Companies
Availing of the services of established distribution companies is

practice accepted by mutual fund internationally. This practice
evolves with a view to provide the huge administrative mechanism
require supporting a large agent force. Instead of having to deal
with several agents, a fund can interact with distribution
companies that have several employees or sub brokers under it.
Bank & NBFCs
In developed countries, bank are an important marketing vehicles

for mutual funds given that banks themselves had large
depositors/ clients base of their own. We can see the opening up
of this new channel now in India. Several banks, particularly
private and foreign banks are involved in fund distribution by
82
providing services similar to those of distribution companies, on a
commission basis.
Direct Marketing
Direct marketing means that the mutual funds sell their own
products without any use of intermediateries. Usually, this takes
the form of the sales officer and employees of the AMC who
approach the investor and accept their contribution directly.
However in India, independent agents may really be created as a
direct marketing channel in a sense that they do not form a well
knit independent and organized a single entity and act more like
fund employees. Others channel like distribution companies or
banks or even stockbrokers are clearly distinct and independent
intermediaries.
Pricing Policy
HDFC Asset Management Company is service Provider Company so

There is Entry Load and Exit Load for each scheme.
83
NO Scheme name Entry load Exit load
1 Equity Funds 2.25% <=5 crores Nil
Nil above 5 crores
2 SIP 1% 1.25% before 6 months

3 MIP Nil 0.5% up to 10 lacs within 6
months
0.25 % above 10 lacs within 3
months
Thus each scheme has different Entry Load and Exit Load.
Promotional Tools
The objective of advertising of HDFC AMC is to create awareness
about services and scheme of HDFC among investors and sub-brokers
and increases sub-brokers of HDFC AMC.
Company does give advertisement in media like Newspapers, and

Magazines etc. when in introduce new scheme or mutual fund IPO and
through direct marketing they advertise and create awareness about
their services and new schemes. HDFC also do presentation about
various schemes so that investors can know more about their product
and services.
Another tool of promotion of HDFC AMC is Public Relation involves a

variety of programs designed to promote or protect a company’s image
or its individual products. HDFC has PR department monitors the
attitudes of the organization’s publics and distributes information and
communications to build goodwill. They also perform following function:
84
1. Press relation: Presenting news and
information about the HDFC AMC in the
most positive light.
2. Product publicity: Sponsoring efforts to
publicize specific products.
3. Counseling: Advising management about
public issues and company positions and
image.
Innovative Practices
Relationship Manager for all client base more than 5 lacs.
Relationship marketing is based on the premise that important accounts
need focused and continuous attention. Relationship marketing helps to
judge which segments and which specific customers will respond
profitably to relationship management.
85
OPERATIONS
DEPARTMENT
86
Location Details
HDFC AMC is located at Yagnik road which is in the heart of the city
where service is easily available for all customer and easy access
compare with other place that available in city. Location has major
impact on success or failure of operation. Advantages of this type of
location are that service cost and distribution cost is minimum
comparison with other place.
REGISTERED OFFICE OF HDFC ASSET MANAGEMENT COMPANY

LIMITED IS:
RAMON HOUSE, 3RD FLOOR,

H.T. PAREKH MARG,
169, BACK BAY RECLAMATION,
CHURCHGATE,
MUMBAI 400 020
87
The major investor service centers of
HDFC MUTUAL FUND are as below.
88
Layout Details
There is a plan of all the act of planning & optimum arrangement of
planning including flow of man & material and customer, operating
equipment, storage space, material handling equipments and all other
supporting services along with the design of best structure to contain all
these facilities.
Planning & Controlling
It is useful for effective utilization of resources, to achieve organization

goal and objectives with respect to quality service, cost control timely
service. Other objective is to co-ordinate with other department to
ensure continuous quality service. There is a proper planning and
planning with respect o which type of scheme to be introduced, what
are expenses of R&D for finding out feasibility of that scheme, how
many people will work on that particular job, before introducing new
scheme. There is special research department who carries out analysis
of market and there is a fund manager who carrier out all planning for
investing in various sector and he is also responsible controlling cost of
transaction so that it can give return to investors.
89
Maintenance
HDFC AMC is the service sector industry so all the work is carried out
with the help of computer System. There is contract given to service
provider and staff itself does other maintenance.
Procurement
HDFC AMC is the service sector industry so procurement is only for
computer machinery and computer stationary and other stationary
include brochures of all the schemes and monthly fact sheet is used in
daily work. Procurement of computer machinery is done through central
contract of main branch and procurement for stationary is done through
local stationary distributor
Store Management
HDFC AMC is the service sector industry so storage is only for files and
fact sheet and other document that published by AMC.
90
91
FINANCIAL
DEPARTMENT
92
Acquisition of Funds
&
Utilization of Funds
HDFC Asset Management Company is a service sector industry so
acquisition of funds is done by introducing various schemes and
utilization of fund is done by Fund Manager and fund is invested in
market and following is the total AUM (Asset Under Management) and
also given % of utilization in equity and debt.
HDFC AUM Report
Assets Under Management (AUM) as at the end of Feb-2006 (Rs in

Lakhs)
Average AUM For
AUM
The Month
Scheme Name Excluding Excluding
Fund Of Fund Of
Fund Of Fund Of
Funds Funds
Funds Funds
Open Ended
HDFC Long Term
Advantage Fund formerly
18837.15 0 18176.73 0
HDFC Tax Plan 2000
Dividend
HDFC Long Term
Advantage Fund formerly
16001.7 0 15159.28 0
HDFC Tax Plan 2000
Growth
HDFC Balanced Fund
7953.72 0 7851.97 0
Dividend Plan
HDFC Balanced Fund
2857.69 0 2796.92 0
Growth Plan
HDFC Capital Builder
70590.44 0 76976.59 0
Fund Dividend Plan
HDFC Capital Builder
24691.35 0 25654.36 0
Fund Growth Plan
93
HDFC Cash Management
Fund - Call Plan Daily 148.81 0 156.64 0
Dividend Plan
Fund - Call Plan Growth 3397.31 0 3438.46 0
Option
130922.49 109881.82
Fund - Savings Plan Daily 0 0
Dividend Option
Fund - Savings Plan 54090.94 0 53109.16 0
Growth Option
Fund - Savings Plan 51955.64 0 54077.05 0
Weekly Dividend Option
Savings Plus Dividend 39576.21 0 41937.17 0
Plan
Savings Plus Growth 14270.33 0 15070.69 0
Plan
HDFC Children Gift Fund
10131.06 0 10040.36 0
Investment
HDFC Children Gift Fund
6009.48 0 6040.56 0
Savings
HDFC’S CORE & SATELLITE
FUND HDFC’S CORE & 33363.33 0 33190.64 0
SATELLITE FUND - DIVIDEND
HDFC’S CORE & SATELLITE
FUND HDFC’S CORE & 20344.35 0 19764.95 0
SATELLITE FUND - GROWTH
HDFC Equity Fund 179864.79 172451.54
0 0
Dividend Plan
HDFC Equity Fund
85925.42 0 81732.37 0
Growth Plan
HDFC Floating Rate
Income Fund-Long Term 10615.43 0 10945.51 0
Plan DIVIDEND
HDFC Floating Rate
Income Fund-Long Term 23219.71 0 23460.81 0
Plan GROWTH
94
HDFC Floating Rate
Income Fund-Short Term 77092.97 0 79566.73 0
Plan Dividend
HDFC Floating Rate
Plan Dividend - Daily
HDFC Floating Rate
Plan Dividend - Monthly
HDFC Floating Rate
Plan Growth
HDFC Gilt Fund-Long
1757.25 0 1776.05 0
Term Dividend
HDFC Gilt Fund-Long
4386.49 0 4587.9 0
Term Growth
HDFC Gilt Fund-Short
290.39 0 281.14 0
Term Dividend
HDFC Gilt Fund-Short
877.8 0 929.13 0
Term Growth
HDFC Growth Fund
18083.17 0 18064.68 0
Dividend Plan
HDFC Growth Fund
12106.39 0 12123.31 0
Growth Plan
HDFC High Interest Fund
4944.97 0 5002.29 0
Growth Plan
118.22 0 119.1 0
Half Yearly Dividend Plan
1485.87 0 1569.07 0
Quarterly Dividend Plan
36.23 0 40.28 0
Yearly Dividend Plan
HDFC High Interest Fund -
Short Term Plan Dividend 5575.07 0 5901.1 0
Option
HDFC High Interest Fund -
Short Term Plan Growth 1731.71 0 1919.08 0
Option
HDFC Income Fund
12679.8 0 12940.41 0
Dividend
HDFC Income Fund 16067.16 0 16442.68 0
95
Growth
HDFC Income Fund
0 0 0 0
Premium Plan Dividend
HDFC Income Fund
0 0 0 0
Premium Plan Growth
HDFC Income Fund
0 0 0 0
Premium Plus Dividend
HDFC Income Fund
0 0 0.01 0
Premium Plus Growth
HDFC Index Fund-Nifty
445.49 0 441.24 0
Plan(FV Rs 10.326)
HDFC Index Fund-Sensex
581.89 0 594.26 0
Plus( FV-Rs32.161)
HDFC Index FundSensex
477.65 0 466.37 0
Plan( FV Rs 32.161)
HDFC Liquid Fund
45079.48 0 42692.99 0
DIVIDEND
HDFC Liquid Fund
2745.5 0 2162.67 0
Dividend - Daily
HDFC Liquid Fund
528.33 0 452.44 0
Dividend - Monthly
HDFC Liquid Fund
30447.49 0 27852.59 0
GROWTH
HDFC Liquid Fund
Premium Plan - Dividend- 15527.11 0 6835.86 0
Daily
HDFC Liquid Fund
Premium Plan - Dividend- 0 0 0 0
Monthly
HDFC Liquid Fund
Premium Plus Plan - 0 0 0 0
Dividend-Daily
HDFC Liquid Fund
PREMIUM PLUS- 34376.46 0 49412.79 0
Dividend
HDFC Liquid Fund
44970.15 0 42239.93 0
PREMIUM PLUS- Growth
HDFC Liquid Fund
7121.82 0 6822.45 0
PREMIUM- Dividend
HDFC Liquid Fund 8485.41 0 8985.3 0
96
PREMIUM- Growth
HDFC MF Monthly Income
Plan Long Term Plan 37408.25 0 38162.77 0
Growth Option
Plan Long Term Plan 15724.56 0 15840.77 0
Monthly Dividend Option
Plan Long Term Plan
25848.35 0 25567.83 0
Quarterly Dividend
Option
Plan Short Term Plan 25455.85 0 25893.1 0
Growth Option
Plan Short Term Plan 4855.8 0 4928.51 0
Monthly Dividend Option
Plan Short Term Plan
10083.57 0 10106.27 0
Quarterly Dividend
Option
HDFC MULTIPLE YIELD
HDFC MULTIPLE YIELD - 13356.83 0 13660.44 0
DIVIDEND
HDFC MULTIPLE YIELD
HDFC MULTIPLE YIELD - 42746.02 0 45112.66 0
GROWTH
HDFC Multiple Yield Fund
12806.04 0 14046.78 0
- Plan 2005 Dividend
HDFC Multiple Yield Fund
45516.13 0 45699.21 0
- Plan 2005 Growth
HDFC Premier Multi-Cap
79709.8 0 81862.4 0
Fund Dividend
HDFC Premier Multi-Cap
38533.13 0 39056.86 0
Fund Growth
HDFC Prudence Fund 125069.82
0 123103.3 0
Dividend Plan
HDFC Prudence Fund
39287.52 0 39609.62 0
Growth Plan
HDFC Short Term Plan
2682.58 0 2732.03 0
DIVIDEND
97
4581.45 0 4668.24 0
GROWTH
0 0 0 0
PREMIUM -Dividend
PREMIUM PLUS 0 0 0 0
-Dividend
0 0 0 0
PREMIUM PLUS -Growth
0 0 0 0
PREMIUM-Growth
HDFC Sovereign Gilt Fund
- Investment Plan 28.59 0 29.65 0
Dividend Option
- Investment Plan Growth 39.59 0 39.97 0
Option
- Provident Plan Dividend 72.53 0 72.56 0
Option
- Provident Plan Growth 136.52 0 139.57 0
Option
- Savings Plan Dividend 10.49 0 10.55 0
Option
- Savings Plan Growth 41.69 0 41.68 0
Option
HDFC Tax saver Dividend
16825.11 0 15754.16 0
Plan
HDFC Tax saver Growth
15502.62 0 14184.14 0
Plan
HDFC Top 200 Fund
69327.15 0 70913.26 0
Dividend Plan
HDFC Top 200 Fund
31010.76 0 29917.44 0
Growth Plan
Close Ended
HDFC LONG TERM
46242.76 0 46038.13 0
EQUITY FUND Dividend
HDFC LONG TERM 99210.33 0 98771.32 0
98
EQUITY FUND Growth
HDFC has total AUM (Asset under Management)

21,602.31crores
Equity & Balance - 11,334.55.crores
Debt & MIP - 10,267.76crores
99
E q u ity a n d D e b t c o m p o s itio n
E q u it y ( % )
D e b t (%)
E q u it y ( % ) D e b t (%)
48%
52%
Financial Performance
(BALANCE SHEET AND P &
L)
100
101
102
103
104
105
106
COMPARATIVE ANALYSIS
OF 3 YEARS
(RATIO ANALYSIS)
Name Formula 2005 2004 2003

N. P. Ratio Net profit/ Sales * 100 50.24 % 46.67 % 30.43 %
Current Ratio Current assets / current 0.71: 1 0.81:1 0.74:1

Liabilities
Return on investment Net profit / Total invt * 100 56.59 % 44.58 % 45.67 %
Earning per share (EPS) Profit available to equity 10.78 10.02 10.05
shareholder / No. Of equity
Note: In absence of any information about sales we have

calculated N. P. ratio based on their main income.
107
HUMAN
RESOURCE
DEPARTMENT
108
“Human Resource Management function that helps managers recruits
select, train and develop members for an organization. Obviously, HRM
is concerned with the people’s dimension in organizations
In all business concerns, there is one common element. I.e., HUMAN

RESOURCE. Work force of an Organization is one of the most
important inputs of components. It is said that people are our single
most important assets. Because of the unique importance of HUMAN
RESOURCE and its complexity due to ever changing psychology,
behavior and attitudes of men and women at work, personnel function,
i.e., manpower management function is becoming increasingly
specialized. The personnel function or system can be broadly defined
as the management of people at work- management of managers and
management of workers. Personnel function is particularly interested in
personnel relationship and interaction of employees-human relations.
In a sense, management is personnel administration. Management is

the development of people, and not mere direction of material
resources. Human capital is the greatest asset of a business enterprise.
The essential ingredient of management is the leadership and direction
of people. Each manager of people has to be his own personnel man.
Personnel management is not something you really turn over to
personnel department staff.
109
Manpower Planning
Human Resource Planning is the processes by which an organization
ensures that it has the right number and kind of people, at the right
place, at the right time, capable of effectively and efficiently competing
those tasks that will help the organization achieve its overall objectives.
Human Resource Planning translates the organization’s objectives and
plans into the number of workers meet those objectives. Without a
clear-cut planning, estimation of an organization’s human resource
need is reduced to mere guesswork
Manpower planning is needed with respect to persons who can work as

sub-broker for the companies. Companies focus on Advisors of Mutual
Fund product and ELSS schemes of HDFC AMC and focused on
Insurance Advisor and post office agent, Tax consultants and CAs for
making sub-broker.
HDFC AMC follows the following process:
1) The first step is forecasting the need of manpower in terms of

divisions, department or functions. Along with the estimate of the
number of the people required in different departments it is also
decided that at which level they will be needed.
2) After estimating the manpower requirement, next step is to have a
look at the current human resource. The current human resource is
assessed so as to know whether the existing personnel can fill the
requirement or not.
110
3) At last detailed policies for recruitment, selection, training,
promotion, retirement, replacement etc. of existing and new
employees to meet the forecasted needs is made.
Recruitment & Selection

The upper level members like zonal managers, regional managers, branch
managers and senior executives are recruited by publishing recruitment
advertisement in leading national level newspaper. The qualified applicant
are then called for interview and selected.
The regional manager has authority to select lower level employee like
peon, marketing executives, financial accountant etc. by approval of zonal
manager.
THE RECRUITMENT PROCESS
111
Step 1: Prospecting
Identify as many
prospective
candidates as
possible from multiple
sources.
Step 2: Attracting talent
Be prepared to talk
passionately about
the opportunities of
this career.
Step 3: selecting talent

Select quality talents
through effective
interviewing,
evaluation & hiring
practices.
Step 1: Prospecting
It consists of the following steps:

• Generating leads of potential candidates
• Contacting the leads and finding out their prima facie interest
Step 2: Attracting talent
• Developing your own recruiting style

• Developing a resource pool of talent
112
• Creating interest in the potential advisor
Step 3: Selecting talent
• Conducting an initial interview

• Administrating the candidate
• Managing Director conducts final Selection interview.
Training
Continuous training and upgrading technical, behavioral and managerial

skills is a way of life in HDFC AMC. HDFC AMC encourages agent or sub-
broker to hone their skills regularly to enable them to face the challenges of
the changing requirements of customers that fit market up and down.
113
Training needs analysis is done on a regular basis and systematic
methodologies are ensured that skills and capabilities of all agents are
constantly upgraded to enable them to perform in the challenging work.
There is special training session at regular time period in local branch to all
financial consultant and agents about new scheme and to improve their
effectiveness.
The successful candidates of the AMFI Exam are given the product
training. The primary purpose is to become quite conversant with the
product that one sells. In other words, product knowledge is very important
for any advisor. Product knowledge is not just about knowing the broad
terms and conditions of the various schemes of mutual fund. The advisors
are explained about the schemes, the terms related with it, the benefits it
provides to investor. This training is aimed at making the advisors fully
equipped with the companies’ product information. This training is aimed at
making the advisors experts in selling the mutual fund products.
This gives the advisors a systematic framework, which they can follow so
as to attract the customers and be effective in their work. Later the agents
are trained on products; need analyses and how to deliver the message to
the market.
Performance Appraisal
Objective of Performance appraisal if for Developmental uses for
agents and financial consultants, for wages, transfer, promotion, for
114
documentation and for organizational purpose like Human Resource
Planning, Job analysis and for training and development.
For Performance Appraisal modern method is used like MBO

(Management By Objectives).
115
RESEARCH
116
INTRODUCTION TO
RESEARCH
“ALL PROGRESS IS BORN OF INQUIRY”
Research inculcates scientific and inductive thinking and it promotes

the development of logical habits of thinking and organization. The
research methodology has gone through which path to solve the
research problem and which tools have been adopted to achieve the
desired objective and more importantly it tells why only that path or
tools have been chosen and not other?
Many marketing writers confuse the term 'market research' with the
term 'marketing research', and sometimes these two terms are used
interchangeably. Thus, it is important to differentiate between the two
terms. Marketing research is defined as "the function that brings the
consumer, customer and public to the market through information -
information used to identify and define marketing objectives and
problems; generate, refine and evaluate marketing actions, monitor
marketing performance; and improve understanding of the marketing
process". This clearly shows that marketing research is wide ranging in
its concerns. The term 'market research' according to Adcock et al is
"used to define the specialist activities involved in collecting information
directly through the use of questionnaires and other associated
techniques". They then emphasize that "it is useful to consider market
research as a specialist activity which is within the scope of the
marketing research function" and that it is "concerned with collecting
primary information".
117
TITLE OF THE STUDY
“COMPARISION OF HDFC EQUITY SCHEMES

WITH COMPETITOR’S EQUITY SCHEMES”
118
RESEARCH PROBLEM
HDFC is one of the leading Asset Management Company, which has

wide range of funds to suit variety of investment needs of investors.
Facts suggest that mutual fund industry is a growing industry and there
is also increase in competition. The performance of various funds will
decide the preference of AMC as well as funds offered by the company.
The competition is ever increasing in Mutual Fund Industry. The

number of AMC operating is increasing and there is also increase in the
funds offered by the existing AMC. Every year various AMC floats new
funds in the market and there is a tough competition to get investors
money. In such a competitive scenario the past performance of the fund
will definitely affect the future prospects of that fund. If in the past the
performance of the fund is good than investors would be motivated to
invest in that funds in spite of the fact that past performance does not
guarantee future performance of the funds.
Equity fund is offered by almost all AMC. Equity funds are able to
gather large funds and it constitutes larger part of total Asset under
Management of the company. In such a situation the company needs to
compare its own fund with that of fund offered by other AMC. Such a
comparison will guide the company in making necessary changes in
investment style and thus can improve the performance of the funds.
The company also needs to know the preference of investors for Equity
funds.
119
Research Objective
Any activity done without any objective in a mind cannot turn fruitful. An
objective provides a specific direction to an activity. Objectives may
range form very general to very specific, but they should be clear
enough to point out with reasonable accuracy what researcher wants to
achieve through the study and how it will be helpful to the decision
maker in solving problem.
In context of this project study

The main objective of this research is “Comparative Analysis of
HDFC equity schemes with competitor’s equity schemes.”
However the following are the sub objectives:
 To analyze the portfolio composition of various selected equity

funds.
 To evaluate the performance of the various selected equity funds.
 To identify the top 10 holdings for equity funds.
 To compare the funds NAV.
 To know which fund provide best results
120
Research Design
A research design is pattern or an outline of a research project’s

working. It is a statement of only the essential elements of a study,
those that provide the basic guidelines for the details of the project. It
comprises a series of prior decisions that taken together provide a
master plan for executing a research project.
A research design serves as a bridge between what has been

established i.e. the research objective and what is to be done, in
conduct of the study to realize those objectives. If there were no
research design, the research would have only foggy notion about what
is to be done. There are numerous specific designs, which can be
classified into three broad categories.
Research design is the conceptual structure within which the research

would be conducted.
In fact, it is the general blueprint for the collection, measurement and

analysis of data.
The object of study is to gain familiarity with a phenomenon or to

achieve new insights into it. So, the research design is
EXPLORATORY type.
121
Sources Of Data
Collecting the required information from the right source is very
important. Sources from which the data are collected differ as per the
required of researcher.
Basically there are two types of data collection sources:
1) Primary data source
This data is gathering for the first time for the problem solution.
Primary data has to be collected through well-equipped
instruments, as they are first hand information collected for the
research.
2) Secondary data source
It refers to already gathered and collected data. These may be

internal sources within the clients firms. Externally, these sources
may include books or periodicals, data services, reports and
computer data banks.
Secondary data about Mutual Fund have been collected

from the fact sheets of various AMC. Information is also
gathered from various Mutual Fund Reviews, books,
magazines and websites.
122
Unit Of Analysis
Collecting the required information from the right source is very
important. Sources from which the data are collected differ as per the
required of researcher.
Basically there are two types of data collection sources:
1) Sampling Unit:
The sampling unit consists of various schemes of Mutual funds.
2) Sample Size:
Here I have collected the data of 4 different schemes of different

mutual fund companies. They are as follows.
• HDFC MUTUAL FUND

• RELIANCE MUTUAL FUND
• FRANKLIN MUTUAL FUND
• TATA MUTUAL FUND
3) Sampling Method:
Stratified random sampling method of choosing the samples has
been adopted.
123
Sampling Design
A sample design is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researcher
would adopt in selecting items for the sample. Sample design may as
well lay down the number of items to be included in the sample i.e. the
size of sample. Sample design is determined before the data are
collected. There are many sample designs from which a researcher can
choose. Some designs are relatively more precise and easier to apply
than others. Researcher must select the sample design, which should
be reliable and appropriate for his research study.
There are different types of sample design based on two factors

namely: the representation basis and element selection technique. On
the representation basic, the PROBABILITY SAMPLING OR NON
PROBABILITY SAMPLING.
A random sample gives every unit of the population a known and non-
zero probability of being selected. Since random sampling equal
probability to every unit in the population, it is necessary that the
selection of the sample must be free from human judgment.
So the sampling procedure that selected for research is PROBABILITY
sampling.
124
Data Collection Methods
Data, which is required for any research, is to be collected very
systematically. Data collection procedure is carried out into order to
know the exact information for the research work. Data collection is
done basically in three ways, which are mentioned as under:
For the purpose of gathering the data, different fact sheets and
brochures are used.
125
Basic Information Of The
Selected Asset
Management Companies
1. HDFC ASSET MANAGEMENT COMPANY LIMITED (AMC):
HDFC AMC was incorporated under the companies Act 1956, on

December 10, 1999 and was approved to act as an Asset Management
Company for the Mutual Fund by SEBI on July 3, 2000. In terms of the
Investment Management Agreement, the Trustee has appointed HDFC
Asset Management Company Limited to manage the Mutual Fund. The
paid up capital of the AMC is Rs 75.161 crores.
Name of Minimum Entry Exit Launch Benchmark Fund

Scheme Amount Load Load Date Manager
HDFC 5000 2.25 Nil 1 January S & P CNX Prashant

Equity 1995 500 Jain
Fund
126
2. RELIANCE CAPITAL ASSET MANAGEMENT LIMITED:
Reliance Capital Asset Management LTD is a part of the Reliance

Group. Reliance Mutual Fund was established as a Trust in 1995 with
Reliance Capital Asset Management Ltd as the Investment Manager.
With total Assets under Management of 10555.44 crores. It is amongst
the fastest growing mutual fund companies in India. Its vision is to be
India’s largest and most trusted wealth creator.

Reliance 5000 2.25 Nil 31 BSE Sunil

equity March 100 Index Singhania
opportunitie 2005
s fund
127
3. FRANKLIN TEMPLETON ASSET MANAGEMENT PRIVATE
LIMITED:
Franklin Templeton Investment is one of the largest financial services

groups in the world based at San Mateo, California USA. The group has
US $ 402.2 billion in asset under management globally. Franklin
Templeton has set up offices in 33 locations nationwide and manages
Rs 15630.06 crores assets.

Franklin 5000 2.25 Nil 1 BSE SENSEX K.N.

India Blue Decembe Shivasubra
chip Fund r 1993 maniam
128
4. TATA ASSET MANAGEMENT LIMITED:
Tata Asset Management Ltd. is a part of the Tata group - one of

India's largest and most respected industrial groups. The Tata Group
is one of India's best-known conglomerates in the private sector with a
turnover of around US $ 14.25 billion (equivalent to 2.6 % of India's
GDP). Long known for its adherence to business ethics, it is India's
most respected private business group. With 220,000 employees
across 91 companies, it is also India's largest employer in the private
sector
Tata Asset Management Limited, having Rs. 10464.37 crores (as on

May 31, 2006) of assets under management.

Tata 5000 2.25 Nil 25 SENSEX Prashant

Equity February Jain
Opportunit 1993
ies fund
129
DATA
ANALYSIS
130
Portfolio Composition
1. HDFC EQUITY FUND
Objective:
The investment objective of the scheme is to achieve
capital appreciation.
Asset allocation:
Type of instruments Normal Allocation

(% of Net Asset)
Equities & Equity related instruments 80- 100
Debt & Money Market instruments 0 – 20
2. RELIANCE EQUITY OPPORTUNITEIS FUND
Objective:
The primary investment of objective of the scheme is to
Seek to generate capital appreciation and provide long-term growth
opportunities by investing in portfolio constituted of equity securities and
equity related securities.
Asset allocation:

(% of Net Asset)
Equities & Equity related instruments 90- 100
Debt & Money Market instruments 0 – 10
131
3. FRANKLIN INDIA BLUE CHIP FUND
Objective:
An open-end growth scheme with an objective primarily to
provide medium to long-term capital appreciation.
Asset allocation:

(% of Net Asset)
Equities & Equity related instruments Above 60
Debt & Money Market instruments Up to 40
4. TATA EQUITY OPPORTUNITIES FUND
Objective:
The scheme focuses on capitalizing on opportunities
offered by equity market from time to time with a proactive fund
management strategy.
Asset allocation:

(% of Net Asset)
Equities & Equity related instruments 95
Debt & Money Market instruments 5
132
Performance of Different Equity
Schemes
Name of Scheme 1 year 3 year 5 year
RETURN RANK RETURN RANK RETURN RANK
(%) (%) (%)
HDFC equity fund 46.99 15/122 58.03 15/70 43.55 6/55
Reliance equity 43.20 30/122 ------ ----- ----- ----

opportunities
fund
Franklin India 44.65 23/122 52.93 29/70 34.95 22/55
blue chip Fund
Tata equity 37.72 48/122 66.28 6/70 ------ ------

opportunities
fund
133
1 Year Return
HDFC equity
fund
50
40 Reliance equity
% of 30 opportunities
fund
Return 20
Franklin India
10 blue chip Fund
0
Scheme Name Tata equity
opportunities
fund
Here the return of HDFC Equity Scheme is more than other

equity scheme because the fund manager has invested the
money in only that shares which offer higher return.
134
3 Year Return
70 HDFC equity
60 fund
50
% of 40 Franklin India
Return 30 blue chip Fund
20
10 Tata equity
0 opportunities
Scheme Name fund
Here the return of HDFC Equity Scheme decreases but they have
maintained the same rank in the market as it was before though
the competitors of the scheme increase.
135
5 Year Return
45
40
35
30 HDFC equity
% of 25 fund
Return 20
15 Franklin India
10 blue chip Fund
5
0
Scheme Name
Here return of HDFC Equity is higher compared to its

competitors because of less number of competitors.
136
Top 10 Holdings of Each
Scheme
HDFC EQUITY FUND
Company Industry % Of NAV
Infosys Technologies Ltd Software 8.72

State bank of India Bank 7.88
ITC Ltd Consumer non durable 7.81
Satyam computers services Ltd Software 6.86
Tata motors Ltd Auto 5.87
Bharat Heavy Electrical Ltd Industrial capital goods 5.71
Maruti Udhyog Ltd Auto 5.50
Crompton Greabes Ltd Industrial Capital Goods 5.06
Siemens Ltd Industrial Capital Goods 4.78
Amtek Auto Ltd Auto Ancillaries 4.57
RELIANCE EQUITY OPPORTUNITIS FUND
Reliance Industries Ltd Petroleum Products 6.26

Tata Motors Auto 4.30
Siemens Ltd Telecom 4.19
Aurobindo Pharma Ltd Pharmaceutical 3.71
HCL Technologies Ltd Software 3.18
Tata Consultancy Service Ltd Software 2.63
Bharat Heavy Electrical Ltd Industrial Capital Goods 2.60
ONGC Corporation Ltd Petroleum 2.58
137
India Bulls Financial Service Ltd Financial Service 2.13
FRANKLIN INDIA BLUE CHIP FUND
HCL Technologies Software 7.18

ICICI Bank Bank 6.48
Larson & Toubro Auto 6.13
Reliance Industries Ltd Petroleum 5.64
Infosys Technologies Ltd Software 4.94
Grasim Industries Textile 4.88
Tata Motors Auto 4.85
Hindalco Industries Auto 4.52
Maruti Udhyog Ltd Auto 3.76
TATA EQUITY OPPORTUNITIES FUND
Bharat Heavy Electrical Ltd Industrial Capital Goods 12.16

ACC Ltd Cement 11.34
ITC Ltd Consumer non Durable 10.33
Subex System Ltd Software 7.91
Arbindo Pharma Ltd Pharmaceuticals 6.71
Jay Prakash Associated Ltd Construction 5.33
Mahindra & Mahindra Ltd Auto 4.97
Kec International Ltd Power 3.57
Sterlite Industry Ltd Ferrous Metals 3.03
Pantaloon Retail India Ltd Textile 2.82
138
Comparing Funds NAV
Scheme Name NAV

HDFC Equity Fund 107.22
Reliance Equity Opportunities Fund 19.36
Franklin Blue chip Fund 94.31
Tata Equity Opportunities Fund 42.55
NAV COMPARISION
120
100
80
NAV in Rs 60
40
20
0
HDFC Relianc Franklin Tata
Equity e Equity Blue Equity
107.22 19.36 94.31 42.55
Scheme name
Here in spite of having higher NAV then that of competitors,

HDFC Equity Scheme has offered higher return to the
investor.
139
Comparison of Scheme
returns with
Benchmark
HDFC EQUITY FUND
Period Returns (%) Benchmark Return (%)
Last 1 year 90.24 64.16

Last 3 year 78.66 60.63
Last 5 Year 50.48 30.97
Last 10 Year 33.48 15.29
Since inception 25.36 10.22
R e la tiv e P e r fo r m a n c e
100
Returns
50
0
Last 1
Last 3
Last 5
Period
Year
year
year
Last 10
inceptio
Year
Since
n
T im e P e rio d
140
In this fund return against its Benchmark has been very good. In
the last year it has given 90.24 % return and overall return of its
benchmark was 64.16. So the average return of the fund than its
benchmark is almost 30%.
RELIANCE EQUITY OPPORTUNITIES FUND
Last 1 year 98.39 82.00

R elative P e rfo rm an ce
150
100
Return
50
0
P eriod Las t 1 y ear S inc e
inc eption
T im e P e rio d
In this fund return against its Benchmark has been good. In

the last year it has given 98.39 % return and overall return
141
of its benchmark was 82 % .So the overall return of the fund
than its benchmark is almost 16 % more.
FRANKLIN INDIA BLUE CHIP FUND
Last 1 year 54.69 54.64

Last 3 years 60.08 42.34
Last 5 years 30.75 16.10
R elative Performance
80
60
Return
40
20 Returns (% )
0
Last 1
Last 3
Last 5
inceptio
years
years
year
Benchmark
Since
Return (% )
Tim e Pe riod
142
In this fund return against its Benchmark has been same
only. In the last year it has given 54.69 % return and overall
return of its benchmark was 54.64 %. And average return of
the fund than its benchmark is almost 14%.
TATA EQUITY OPPORTUNITIES FUND
Last 1 year 103.79 95.67

Last 3 years 94.28 59.58
Last 5 years 44.86 27.88
R e la tiv e P e rfo rm a n c e
1 50
1 00
Return
50
0
Last 1
Last 3
Last 5
Period
years
years
inceptio
year
Since
T im e P e rio d
143
In this fund return against its Benchmark has been good. In
the last year it has given 103.79 % return and overall return
of its benchmark was 95.67 %. And the average return of
the fund than its benchmark is almost 18 %.
Findings
Following are the findings of the research-:
1) It is found that Tata Equity Opportunities fund have its maximum

investment 95 % in Equity related Instrument with higher return
and higher risk.
2) In HDFC Equity fund return of 1 year is 46.99 %, 3 year is 58.03

% and 5 year is 43.55 %, which is quite high compared to other
equity schemes.
3) It is also found that because of higher return the rank of HDFC

equity Fund is gradually increased from rank 15 to rank 6.
4) From top 10 holdings of each equity scheme, it is seen that the

major sector in which each scheme has invested are as follows.
• Automobile Sector
• Software Sector
• Industrial Capital Goods
144
• Construction
• Petroleum Industry
5) Regarding NAV it is found that the NAV of HDFC Equity Scheme

is very high compared to other Equity Scheme because fund
manager have invested in those sector, which gives higher return
and it also, maintains the portion of equity and debt related
instruments.
6) The 1-year return of HDFC Equity Scheme against its

Benchmark is 30% more because it maintains its position in the
volatile market.
145
Conclusions
Here from the study we can conclude about overall study through
some sorting of products and the most likely invested sector and
also the good performance of the funds among our sample size and
asset allocation of the fund and the overall return of the fund against
its benchmark.
Following are the conclusions of the research study-:
1) To achieve long-term capital appreciation, most of the Equity

Schemes have invested its large portion in equity & equity
related instruments.
2) The last 5-year return of HDFC Equity Scheme is more than any
other Equity Schemes.
3) The Position of HDFC equity scheme increases gradually.
4) Each of the Schemes has diversified sectorial allocation of

investment to achieve safe return as far as possible.
5) The NAV is HDFC Scheme is very high compared to other Equity

Schemes.
6) The overall return of HDFC Equity Scheme against its

Benchmark is more because it maintains its position in the
volatile market.
146
Limitations of the Study
1. This exploratory research is done focusing on the investment

scenario of Rajkot of Saurashtra region of equity schemes only
and therefore findings are suggestions given on the basis of this
research and cannot be considered for the entire Mutual fund
Industry.
2. Due to limitation of time and cost constraints a sample size of

only 4 equity schemes are chosen.
3. Data Analysis and interpretation done may not be that strong

due to small sample and random sampling method.
4. Major source of data collected is secondary which might limit the

study.
5. My own inexperience in the research field might have affected

the results.
147
Recommendations
ℵ HDFC MF is doing comparatively very less marketing in MF
industry in compare to other players. Due to this other player are
getting the advantage. Thus it should try to increase the
marketing and advertising related activities time to time or at
least at the time of new NFO’s, at the time when they are
declaring dividends or at the peak time (i.e. January - March)
last quarter of financial year when people are searching for
investing instruments.
ℵ A very small part market has been cover by HDFC MF. It can
increase the circle of its business in small and rural areas of
every state and cities of India where they can find a huge
business.
ℵ To uproot the investment level the company should give training

programme to financial agents who approach the investor for the
investments. And they should be aware of all the benefits of the
mutual Funds.
ℵ Company should undertake the Campaign, Road shows,

Advertisement and other type of Publicity for the effective
awareness of different schemes that are available in the market.
ℵ The company should arrange seminars and presentations, giving

detail idea about securities and benefits of investment in mutual
fund.
148
ℵ The interface among the investors and the Mutual Fund
Companies is the agents. The company should be conducting
special training and motivation programmed so that they are
being motivated to work and their quality of performance is
maintained.
Appendixes
149
LIST OF TABLES
Sr. No. Name of Table Page No.
1 SHARE HOLDING OF AMC 11

2 MUTUAL FUND PLAYERS 26
3 AUM OF COMPETITORS 27
4 INVESTMENT STRATEGY 62
5 PORTFOLIA STRATEGY 64
6 PRICING POLICY 69
7 HDFC AUM REPORT 77
8 RATIO ANALYSIS 90
9 HDFC EQUITY SNAPSHOT 108
10 RELIANCE EQUTIY SNAPSHOT 109
11 FRANKLIN INDIA SNAPSHOT 110
12 TATA EQUITY SNAPSHOT 111
13 ASSET ALLOCATION (H & R) 113
14 ASSET ALLOCATION (F & T) 114
15 PERFORMANCE OF EQUITY SCHEMES 115
150
16 TOP 10 HOLDINGS (H & R) 118
17 TOP 10 HOLDINGS (T & F) 119
18 NAV DETAILS 120
19 HDFC EQUITY VS BENCHMARK 121
20 RELIANCE EQUITY VS BENCHMARK 122
21 FRANKLIN BLUECHIP VS BENCHMARK 123
22 TATA EQUTIY VS BENCHMARK 124
151
LIST OF GRAPHS
Sr. No. Name of Graph Page

No.
1 SOCIAL RESPONSIBLITIES 18
2 GROWTH OF ASSETS 42
3 EQUTIY RISK VS RETURN 54
4 DEBT RISK VS RETURN 57
5 AGGRESSIVE PORTFOLIO 62
MODERATE & CONSERVATIVE
6 63
PORTFOLIO
7 RISK VS RETURN INVESTMENT 67
8 EQUITY & DEBT COMPOSITION 83
9 1 YEAR RETURN 115
10 3 YEAR RETURN 116
11 5 YEAR RETURN 117
12 NAV COMPARISION 120
13 HDFC RELATIVE PERFORMANCE 121
14 RELIANCE RELATIVE PERFORMANCE 122
15 FRANKLIN RELATIVE PERFORMANCE 123
16 TATA RELATIVE PERFORMANCE 124
152
GLOSSARY
Account Statement:
Statement issued by the mutual fund, in lieu of the unit certificate,
giving details of transactions and holdings of an investor in the
different schemes of the fund.
Adjusted NAV:
The Net Asset Value after adjusting for all changes caused due to
dividend declaration, bonus etc. assuming reinvestment of
distributions made to the investors at the prevailing NAV.
Annual Report:
The yearly record of scheme's performance, and is distributed to
investors and/or shareholders under SEBI regulations.
Applicable NAV:
It is the NAV that will be applied for a transaction depending upon
the cutoff time specified by the Mutual Fund. All investments or
redemptions are processed at that particular NAV. A different NAV
holds if received after the cutoff time.
Asset Allocation:
The distribution of total funds available with the scheme into
instruments of various types such as stocks, bonds etc. based on
the scheme's investment objective as detailed in the offer
document.
153
Benchmark:
The investment performance of the scheme needs to be
compared in relative terms against some indicator, which is called
as the benchmark for the scheme. For example, the performance
of an equity fund be benchmarked against the BSE Sensex.
Capital Gains:
The profit realizations on sale of securities and certain other
capital assets (including units of mutual funds) are called capital
gains. The gains can be classified into long-term, if the
investments are held for more than one year, or short-term,
otherwise, and are charged at different tax rates.
Current Load:
It refers to the load structure applicable currently on any fund.
Funds keep revising the load structures from time to time.
Current Yield:
The ratio of coupon interest to the actual market price, prevailing
in the market, of the bond expressed as a percentage: annual
interest/ current market value = current yield.
Custodian:
154
SEBI mandates that a Custodian be appointed for safekeeping of
a fund's securities and other assets.
Diversification/Spreading the risk:

Diversification, i.e. investing across a number of asset classes,
assets within a asset class, helps in reducing the risk.
Dividend Plan:
Generally a scheme has two plans, Growth Plan and Dividend
plan. In the latter earnings of the scheme are declared as
dividends, as and when there is a distributable surplus available
with the scheme as per the Trustees.
Dividend Payout:
Under the Dividend plan of a scheme there are two options
available to the investor, viz.
Dividend Payout option Under the Dividend Payout option, the

dividend declared is also actually distributed i.e. given to the
investor.
Dividend Reinvestment option

Under the Dividend plan of a scheme there are two options
available to the investor, viz. Dividend Payout option and Dividend
Reinvestment option. Under the Dividend Reinvestment option,
the dividend declared is not distributed i.e. given to the investor.
but reinvested in the scheme itself.
Dividend yield:
155
It refers to the dividend earned per unit in Rupees of a scheme at
the prevailing NAV.
Duration:
This is a tool used to calculate the average holding period of the
assets in a debt scheme, and can help, particularly Modified
Duration, in estimating the sensitivity of a fund to incremental yield
movements.
Entry Load:
It is the load charged by the fund when one invests into the fund.
It increases the price of the units to more than the NAV and is
expressed as a percentage of NAV. For example a 1 % entry load
will increase the NAV from Rs 11 to Rs 11.11 and therefore the
number of units allotted will be lesser to that extent.
Expense Ratio:
The Expenses of a scheme include management fees and all the
fees associated with the scheme's daily operations. Expense
Ratio refers to the annual percentage of fund's assets that is paid
out in expenses and can affect the performance of the scheme.
Exit Load:
It is the load charged by the fund when one redeems the units
from the fund. It reduces the price of the units to less than the
NAV and is expressed as a percentage of NAV.
156
Face Value:
The original issue price of one unit of a scheme, generally Rs 10.
First In First Out:

It is an accounting method which assumes that the units
purchased first are the units sold/redeemed first.
Gilts/Government Securities:
Securities created and issued by the Central Government and/or
State Government, and may include securities unconditionally
guaranteed by the Government. An auction process determines
the coupon on these securities.
Guaranteed Returns:
Returns from mutual fund schemes are subject to market and
other investment risks. As such there is no assured/guaranteed
return in mutual funds. This applies even to debt schemes. The
launch of scheme/fund offering guaranteed returns is now subject
to certain restrictions imposed by the SEBI, and generally SEBI
does not allow guaranteed returns.
Inflation Risk:
The probability of the value of an asset being eroded on account
of inflation.
Lock-in period:
The cooling period after investment in fresh units during which
the investor cannot redeem the units.
157
Management Fee:
The fees charged to a scheme for investment management of the
funds under the scheme, usually expressed as percentage of
assets, and are subject to limits prescribed by SEBI.
Market Risk:
It refers to the risk posed by the market in itself i.e. the risk that
the price of a security will raise or fall due to changing economic,
political, or market conditions.
Money Market:
It refers to a market for very short-term securities less than a
year, such as Treasury Bills and Call Money make up the bulk of
trading in the money markets.
No Load:
It refers to the fund that does not charge any load for buying or
selling its units, i.e. the investor can transact at the NAV.
Non Performing Assets:

Assets that do not provide returns are classified as NPAs as per
the provisions of SEBI regulations.
Offer Document:
It is the official document issued by mutual funds prior to the
launch of a fund describing the characteristics of the proposed
scheme/fund to all its prospective investors. It contains
158
information required by SEBI pertaining to issues such as
investment objective and policies, services, and fees.
Open Ended Fund/Scheme:

It is a type of a scheme/fund where purchase or sale of units is
offered on a continued basis at NAV related prices.
Redemption:
An investor wishing to withdraw his/her investment from a
scheme/fund gives a redemption transaction. The investor is paid
a NAV linked price.
Risk Adjusted Returns:

For the purpose of comparing returns across schemes involving
varying levels of risk, the returns are adjusted for the level of risk
before comparison. Such returns (reduced for the level of risk
involved) are called risk-adjusted returns.
Sale Price:
The price at which a fund offers to sell one unit of its scheme to
investors. This NAV is grossed up with the entry load applicable, if
any.
Sponsors:
A sponsor is the person who, acting alone or in combination with
another body or corporate, establishes a mutual fund and applies
to SEBI for its registration. As per SEBI regulations, the sponsor
has to contribute a minimum of 40% of the net worth of the AMC.
159
Systematic Withdrawal Plan (SWP):
It is the opposite of SIP and facilitates regular withdrawals. This
helps investors in meeting their regular financial needs.
Total Return:
Return on investment, calculated after taking into account capital
appreciation, dividends or interest, and individual tax
considerations adjusted for present value and expressed on an
annualized basis.
Trustee:
The Trustees comprise the Trust and having an overall
supervisory authority over the AMC. They ensure that the AMC
follow the trust deed, the SEBI regulations and the offer document
and the assets of the funds are held safely.
Yield Curve:
The curve gives the relationship between yields on a group of
fixed-income securities with varying maturities viz. treasury bills,
notes, and bonds. The curve typically slopes upward since longer
maturities normally have higher yields, although it can be flat or
even inverted.
BIBLIOGRAPHY
 BERI G. C. – “MARKETING RESEARCH” – 3RD EDITION –

TATA MC. GRAW HILL PUBLISHING CO. LTD.
160
 FACT SHEETS OF HDFC AMC, FRANKLIN TEMPLETON AMC,
TATA AMC, RELIANCE AMC
 MUTUAL FUND REVIEW OF – 2006
 K.ASWATHAPPA “HUMAN RESOURCE MANAGEMENT”
Websites
 www.hdfcfund.com
 www.mutualfundsindia.com
 www.amfiindia.com
 www.sebi.gov.in
 www.valuresearchonline.com
 www.moneycontrol.com
161

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INTRODUCTION

One of the important investment avenues in the financial market is the

MAN WITH A MISSION

 In 1956 he began his lifelong financial affair with the

 Manager of the newly formed Industrial Credit and

 At the ripe age of 60,

a) Develop close relationships with individual households,

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

c) Transform ideas into viable and creative solutions,

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

Key group Companies and

ℵ HDFC Standard Life Insurance

ℵ HDFC Mutual Fund

ℵ HDFC Chubb General Insurance

ℵ Credit Information Bureau (INDIA) Limited

ℵ HDFC Consultancy Services

HDFCrealty.com is a / your new, organized electronic

HDFCrealty.com brings together India's most exhaustive

HDFC is India’s largest Housing Finance Company and is an

HDFC Bank's mission is to be a World-Class Indian Bank. The objective

HDFC Bank offers a wide range of commercial and transactional

1. Wholesale Banking Services

HDFC Standard Life

'The most successful and admired life insurance company, which

Values that we observe while we work: Integrity, Innovation

Standard Life Assurance Company

ℵ The Standard Life Assurance Company

ℵ HDFC Trustee Company Limited

ℵ HDFC Asset Management Company Limited (AMC)

The present share holding pattern of the AMC is as

PARTICULARS % OF THE PAID UP

HDFC Chubb General

1. The categories comprise

2. Personal Insurance, Accident and Health Insurance and

HDFC was incorporated in 1977 with two primary objectives - to

Mission is to provide our customers with the most useful investment

What HDFC SECURITIES

“HDFCsec helps you manage your money in every

HDFC Consultancy Services

At the national level, HDFC executives have played a key role in

What intelenet global do

To add value to our clients' business by providing cost-effective,

ℵ Experience of Standard Life Investment.

ℵ Young and well qualified staff.

ℵ Well aware of customer need.

ℵ Presence of HDFC MF in very less places.

ℵ Comparatively very less staff and very heavy work load.

ℵ Only instrument with proper corporate governance and

ℵ Rural market is totally untapped.

Mutual funds have played a significant role in financial intermediation,

Until 1992, primary market investors were effectively assured good

AMFI (Association of Mutual Fund in India)

 AMFI not a Self Regulatory Organization (SRO).

SEBI (Security Exchange Board of India)

Securities and Exchange Board of India ("SEBI"), the Capital Markets

RBI (Reserve Bank of India)

Legal Limitations to Investors Rights

 Carefully study the offer document before investing

A mutual fund is answer to all these situations. It appoints professionally

So that HDFC Asset management company have introduced varieties

HDFC Asset Management Company, have variety of scheme both open

For Equity related scheme customer profile is young generation, for