INDEX EXECUTIVE SUMMARY |03 | |INTRODUCTION |04-05 | |OBJECTIVES |06 | |LITERATURE REVIEW |07-08 | |RESEARCH METHODOLOGY |09 | |RESEARCH OUTCOMES |10-15 | |CONCLUSION |16 | |RECOMMENDATIONS |17 | |QUESTIONNAIRE |18-19 | |REFERENCES |20 | EXECUTIVE SUMMARY Many individuals own mutual funds today. To a large extent, mutual funds are the investment vehicle for the majority of households in the India. In the introductory chapter, I have consider the role of mutual fund in today’s investing environment, learn just how popular mutual funds have become and consider why investors have chosen to put so much money into funds.
Clearly, mutual funds are a major financial asset for numerous investors, and in many ways they play the dominant role in today’s investing world for millions of households. I have mainly focused up on the study that which company’s mutual investments are mostly preferable by investors. Today investors are becoming rational & they see all the parameters before investing. The overall objective of my study on this project is to know which company provides better investment opportunities (from HDFC & ICICI) and make the investors to be able to take better decisions . Of course, as every study needs, I’d adopted an objective view of overall situation that examines both sides of the issue in HDFC & ICICI. INTRODUCTION
What is mean by mutual fund? Mutual funds are pools of money that are managed by an investment company. They offer investors a variety of goals, depending on the fund and its investment charter. Some funds, for example, seek to generate income on a regular basis. Others seek to preserve an investor’s money. Still others seek to invest in companies that are growing at a rapid pace. Funds can impose a sales charge, or load, on investors when they buy or sell shares. Many funds these days are no load and impose no sales charge. Mutual funds are investment companies regulated by the Investment Company Act of 1940. HDFC Asset Management Company Ltd (AMC)
HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. The registered office of the AMC is situated at Ramon House, 3rd Floor, H. T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai – 400 020. In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25. 169 crore. Products and Schemes of HDFC mutual fund ? Equity funds. ? Exchange trade funds. ? Debt funds. ? Liquid funds. ? Children’s gift fund
ICICI Prudential Asset Management Company Ltd ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI Bank, India’s second largest commercial bank and a well known and trusted name in the financial services in India, Prudential Plc, one of the United Kingdom’s largest player in the financial service sector. In a span of just over 12 years, the company has forged a position of preeminence as one of the largest Asset Management Company in the country, contributing significantly towards the growth of the Indian mutual fund industry. Its Average Assets under Management (AAUM) as on Mar 2011 Month-end in Mutual Fund Schemes stood at Rs. 73551. 95 Crores.
This is in addition to our Portfolio Management Services, inclusive of EPFO, and International Advisory Mandates for clients across international markets in asset classes like Debt, Equity and Real Estate with primary focus on risk adjusted returns. As an Asset Management Company, it has over 15 years of experience and are currently managing a comprehensive range of schemes of more than 46 Mutual funds and a wide range of PMS Products for our investors, spread across the country. They service this investor base with our own branch network of over 160 branches and a distribution reach of over 42,000 channel partners. Products and Schemes of ICICI mutual fund ? Equity funds. ? Fixed income funds. ? Balanced funds. ? Exchange trade funds OBJECTIVES To analysis which provides better returns from HDFC . ? To know how many people are satisfied by their investment (in HDFC or ICICI). ? To know people behavior regarding risk factor involved in mutual fund. LITERATURE REVIEW There is a famous quote, “Drop by Drop forms the ocean. ” Similarly, every paisa makes a rupee and each rupee invested in right product and at right time will help you to prosper in life. Systematic Investment Plan (SIP) develops a habit of regular savings from monthly income than investing this amount in various schemes of mutual funds after analyzing expected returns, risk, asset allocations, etc. Investing on regular basis i. e. hrough SIP route has given better returns in long term compared to investing lump sum amount in any mutual fund schemes. “Best Mutual Funds for SIP” in popular categories as follows: Top ELSS Schemes for SIP 1. ICICI Prudential Tax Plan: Objective: To generate long term capital appreciation from a portfolio that is invested predominantly in equity and provides tax benefits. Top Sector Allocations: IT, Pharmaceuticals Absolute returns (%) 5 Years 3 Years 1 Year 144 41. 8 53. 7 2. HDFC Taxsaver: Objective: To provide tax benefits along with capital appreciation.
Top Sector Allocations: Pharmaceuticals, IT, BFSI Absolute returns (%) 5 Years 3 Years 1 Year 179. 4 38. 8 48. 7 3. ICICI Prudential Discovery: Objective: To generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks. Top Sector Allocations: BFSI, Pharma, Power Absolute returns (%) 5 Years 3 Years 1 Year 199. 57. 7 65. 7 4. HDFC Top 200: Objective: To generate long term capital appreciation by investing in a portfolio of equities and equity linked instruments drawn from the BSE 200 Index. Top Sector Allocations: BFSI, Oil drilling and exploration, BFSI, IT, Pharmaceuticals Absolute returns (%) 5 Years 3 Years 1 Year 239. 4 60. 4 35. 4 Best Balanced Funds for SIP 1.
HDFC Prudence: Objective: The investment objective of the Scheme is to provide periodic returns and capital appreciation over a long period of time, from a judicious mix of equity and debt investments, with the aim to prevent/minimize any capital erosion. Top Sector Allocations: BFSI, Pharmaceuticals, Oil drilling and exploration Absolute returns (%) 5 years 3 years 1 year 203. 1 56. 1 44. 8 2. Tata Balanced: Objective: To invest in equity and debt oriented securities so as to give investors balanced returns. Top Sector Allocations: BFSI, IT Absolute returns (%) Years 3 Years 1 Year 158. 2 40. 7 33. 9 Source: Value Research Online Note: The absolute returns calculated above are till 30th June, 2010. SIP The above discussed mutual funds category are the most popular among investors. You can also invest in sector oriented mutual fund schemes through SIP. Each scheme has minimum SIP amount in the range of Rs 100 to Rs 10,000 specified in Key Information Memorandum. There is no maximum limit to invest through SIP in any MF scheme. . RESEARCH METHODOLOGY
Research refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. It is an art of scientific investigation. Research Methodology:- It is the way to systematically solve a problem. The methodology adopted in this study is explained below:- Research Design A. Problem Defining: In a competitive situation with multiple mutual funds operating in Indian market, it is necessary to know about the performance of different mutual funds as the performance of mutual fund decides about the future of Mutual Fund Company. In this study my focus is upon performance of investors regarding HDFC ; ICICI.
This is my problem to be studied for research. B. Literature Survey: I have used books related to business ; mutual fund apart from websites. C. Type of research: The research is qualitative ; descriptive in nature. Qualitative research is that talk about the quality of the subject to be researched and Descriptive research is one that describes things as exists in present. D. Sources of data : ? Primary Sources – I have used questionnaire as primary source for collecting data for my study. ? Secondary sources – I had collected my secondary data from websites ; journals. E. Sample size: 30 RESEARCH OUTCOMES 1. Do you invest in mutual fund? [pic]
Interpretation:-All the candidates who are asked to fill the questionnaire have invested in mutual fund. 2. With which company do you have invested in mutual funds? [pic] Interpretation: Out of 30 candidates up to 20 have invested in mutual fund with HDFC ; 10 have invested with ICICI. There are no investors who have invested in mutual fund with any other company. 3. What is your age? [pic] Interpretation: 14 investors are of age between 20-25. 4 are of age more than 45. 7 are of between of 25-35. 5 are of 35-45. This data shows that many investors are of middle age ; young age. 4. What is your annual income? [pic] Interpretation: Up to 15 investors have income 3-5 lakh. 8 have between 1-3 lakh. investors have income more than 5 lakh ; there is no investor who have income up to 1akh. 5. From where you come to know about the company’s mutual fund schemes? [pic] Interpretation: Up to 14 have been come to know about the company to be invested by their friends ; peers. 10 have been known by their family ; relatives . 5 have been come to know by company employees ; only 1 by others. This means many have come to know by their friends ; peers. 6. What is the time duration of your investment? [pic] Interpretation: 15 investors have time of investment 0-2 yrs. 11 have time duration of investment between of 2-4 yrs. 4 have more than 4 years. So, we can say that 15 investors have more experience than others. 7.
Are you satisfied by the service of the company’s employees / people’s behavior? [pic] Interpretation: Out of 30 investors 2 are highly satisfied. 20 are satisfied. 5 are neutral towards employee behavior of a company. 2 are dissatisfied. 1 is highly dissatisfied. We say that many people are satisfied by employee behavior. 8. What is your risk profile? [pic] Interpretation: 33% investors are innovator means they like to take risk for more returns. 50% are moderate towards risk means they are indifferent towards risk. 17% are risk adverse means they mainly try to avoid risk. 9. What do you feel about the company norms, documentation ; formalities? [pic]
Interpretation: 3 investors are highly satisfied by company’s documentation policy (filling up the forms etc. ). 10 are satisfied, 14 never care about it or are moderate towards it, 3 are dissatisfied by it ; no one is highly dissatisfied. 10. What do you say, which provides better returns? [pic] Interpretation: According to collected data 23 investors think that HDFC provides better returns where as only 7 think that ICICI provides better returns. 11. Would you like to exchange your investment with one another between HDFC and ICICI? [pic] Interpretation: 6 investors said that they would like to change their investment with each another between HDFC ; ICICI.
But 24 investors say that they are satisfied with their companies and they would not like to exchange their investment. CONCLUSION To conclude we can say that mutual fund is a very much profitable tool for investment because of its low cost of acquiring fund, tax benefit, and diversification of profits ; reduction of risk. Many investors who have invested in mutual fund have invested with HDFC and they also think that it provides better returns than ICICI. In my study I was supposed to do comparative analysis of the mutual fund of HDFC ; ICICI and I found that people consider HDFC better than ICICI. But ICICI have also respondents and it can increase its investors by improving itself in some terms. To conclude we can say mutual fund is a best investment vehicle for old age people as well as to those who want regular returns on their investment. ? Mutual fund is also better and preferable for those who want their capital appreciation. ? Both the companies are doing considerable achievements in mutual fund industry. ? There are also so many competitors involve, those affects on both companies. RECOMMENDATIONS ? ICICI bank should try to provide better returns to its investors as compare to HDFC. ? Both companies should try to invest in better securities for better profits. ? Both companies should try to satisfy their customer by better customer service or by improving customer relationship management. ? Companies should try to make people initiative towards risk. Investors should be made fully aware of the concept of mutual fund ; all the terms and conditions. ? It should more emphasize in advertising, as it is the most powerful tool to position the brand in the mindsets of customers. QUESTIONNAIRE 1. Do you invest in mutual fund? 1) YES 2) NO 2. With which company do you have invested in mutual funds? 1) HDFC 2) ICICI 3) OTHERS 3. What is your age? 1) 20-25 YR 2) 25-35 YR 3) 35-45 YR 4) ABOVE 45 4. What is your annual income? 1) 0-1 LAKH 2) 1-3 LAKH 3) 3-5 LAKH 4) ABOVE 5 LAKH 5.
From where you come to know about this company’s mutual fund schemes? 1) FAMILY AND RELATIVES 2) FRIENDS AND PEERS 3) COMPANY EMPLOYEES 4) OTHERS 6. What is the time duration of your investment? 1) 0-2 YRS 2) 2-4 YRS 3) ABOVE 4 YRS 7. Are you satisfied by the service of the company’s employees / people’s behavior? 1) HIGHLY SATISFIED 2) SATISFIED 3) NEUTRAL 4) DISSATISFIED 5) HIGHLY DISSATISFIED 8. What is your risk profile? 1) INNOVATOR 2) MODERATE 3) RISK ADVERSE 9. What do you feel about the company norms, documentation ; formalities? 1) HIGHLY SATISFIED 2) SATISFIED 3) NEUTRAL 4) DISSATISFIED ) HIGHLY DISSATISFIED 10. What do you say, which provides better returns? 1) HDFC 2) ICICI 11. Would you like to exchange your investment with one another between HDFC and ICICI? 1)YES 2) NO REFERENCES I. BOOKS : Mutual Funds in India, By :- NALINI PRAVA TRIPATHY II.
WEBSITES :
www.icicipruamc.com,
http://www.hdfcfund.com/,
http://www.cses.org/
https://lawaspect.com/
PROJECT ON 2010-12 COMPARATIVE STUDY BETWEEN THE MUTUAL FUND OF HDFC AND ICICI SUBMITTED TO : PROF. SHWETA KUMARI SUBMITTED BY : MR. ABRAHAM JEYRAJ ROLL NO. : 52521026 DR. D. Y. PATIL UINIVERSITY, DEPARTMENT OF BUSINESS MANAGEMENT, BELAPUR, NAVI MUMBAI INVESTMENT IN MUTUAL FUND
