HDFC AMC

Introduction to Mutual Fund Industry

A Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal
1964-87
• Unit Trust of India (UTI) was established on 1963 by an Act of
Parliament.

1987-1993
Entry of Public Sector Funds

1993-2003
• Entry of Private Sector Funds

July 3, 2000
HDFC Asset Management Company Limited (AMC)

2003
Major Player
 Key Influencers
• Trust
• Sponsor
• Trustees
• Asset Management Company(AMC)
• Custodian and Depositors
• Registrar and Transfer Agents
• Distributors
• Brokers
 Legal and Regulatory
•Securities and Exchange Board of India (SEBI)

•Reserve Bank of India (RBI)

•Registrant of Companies (RoC)

HDFC Asset Management Company Limited
(AMC)
• Incorporated under the Companies Act, 1956,
on December 10, 1999.

Particulars % of the paid up equity capital

Housing Development Finance Corporation 60
Limited
Standard Life Investments Limited 40
 Merger
• Zurich India Mutual Fund that have merger to
HDFC Mutual Fund.
Former Name New Name

Zurich India Equity Fund HDFC Equity Fund

Zurich India Prudence Fund HDFC Prudence Fund

Zurich India Capital Builder Fund HDFC Capital Builder Fund

Zurich India TaxSaver Fund HDFC TaxSaver

Zurich India Top 200 Fund HDFC Top 200 Fund

Zurich India High Interest Fund HDFC High Interest Fund

Zurich India Liquidity Fund HDFC Cash Management Fund

Zurich India Sovereign Gilt Fund HDFC Sovereign Gilt Fund

 Types of Mutual Fund Schemes

By
By Other
Investment
structure Schemes
objective

• Tax Saving Schemes

• Growth Scheme • Special Schemes
• Open –ended
• Income Scheme • Index Schemes
scheme
• Money market • Sector Specific Schemes
• Close-ended
scheme Scheme
• Interval scheme
 Products
Equity/Growth Exchange
Fund Traded Fund
 Investment options
• Lump sum

• Systematic Investment Plan (STP)

• Monthly Income Plan (MIP)

• Systematic Transfer Plan (STP)

• Systematic Withdrawal Plan (SWP)

 Working SIP
RECURRING
DEPOSITS
(DT:1,5,10,15,20,25)

INTEREST IS TO
Select a date
BE ADDED
 SIP

Monthly Units
  Dates Investment NAV Alloated
1 1-Jan-05 4000 10 400.00
2 1-Feb-05 4000 13 307.69
3 1-Mar-05 4000 14 285.71
4 1-Apr-05 4000 18 222.22
5 1-May-05 4000 22 181.82
6 1-Jun-05 4000 12 333.33
7 1-Jul-05 4000 19 210.53
8 1-Aug-05 4000 14 285.71
9 1-Sep-05 4000 17 235.29
10 1-Oct-05 4000 14 285.71
11 1-Nov-05 4000 10 400.00
12 1-Dec-05 4000 14 285.71
         
TOTAL 48000   3433.74
         
         
  Average NAV 14.75  
  Average Cost per unit 13.98  
VALUE CHAIN OF MUTUAL
FUNDS INDUSTRY
AMC IT HRM

INVESTMENT
SELECTION

TRADING AND
EXECUTION

CUSTOMER
RECORD AND
REPORTING

MARKETING
AND
DISTRIBUTION

LIQUIDITY
SERVICES
 DIFFERENT CHANNELS

INDEPENDENT
ORGANIZED
DIRECT SELLING BANKS FINANCIAL
DISTRIBUTORS
ADVICERS
 Example of the scheme:
• HDFC Top 200 Fund

• HDFC Growth Fund

• HDFC Equity Fund

 Asset under management of various schemes
Amount(RS. In lakh)
HDFC Top 200 Fund 9,48,182.34
Fund Manager
Mr. Prashant Jain (since Jun 19, 03)
Benchmark - BSE 200

HDFC Growth Fund 1,21,612.54

Fund Manager
Mr Srinivas Rao Ravuri (Since February 10,
2006)
Benchmark – SENSEX

HDFC Equity Fund 8,27,194.70

Fund Manager
Mr. Prashant Jain (since Jun 19, 03)
Benchmark - S&P CNX 500