A

Major Project Report

On
HDFC MUTUAL FUND
Submitted for partial fulfllment of requirement for the
award of Master of Business Administration
PUNJAB TECHNICAL UNIVERT!
JALAN"HAR #PUNJAB$
ession %&'%(')
Superi!ion "#
Submitted b#
Name of the $uide Name of the
!tudent
De!i%nation
Department &oll
No''''(
de%ree
Of
%&')
**********************************************
INTERNATI+NAL CH++L +, MANA-EMENT AN"
TECHN+L+-!
Sailee )nternational* Old MH" Colon#* $orai &oad* "oriali
+,-* Mumbai./0
MAHA&ASHT&A(
M"A )1 Seme!ter



DECLARATION
) the under!i%ned !olemnl# de2lare that the report of
HDFC MUTUAL FUND * i! ba!ed m# own wor3 2arried out
durin% the 2our!e of m# !tud# under the !uperi!ion of
) a!!ert that the !tatement! made and 2on2lu!ion!
drawn are an out2ome of the pro4e2t wor3( ) further
de2lare that to the be!t of m# 3nowled%e and belief that
the pro4e2t report doe! not 2ontain an# part of an# wor3
whi2h ha! been !ubmitted for the award of an# other
de%ree5diploma52ertif2ate in thi! Unier!it# or an# other
Unier!it#(


&oll
No(6


CERTIFICATE OF THE GUIDE
Thi! to 2ertif# that the report of the pro4e2t !ubmitted i!
the out2ome of the pro4e2t wor3 entitled of hdf2
mutual fund 2arried out b# 4e33e# anandpara bearin%
&oll No(6'''' 7 8nrollment No(6'''(( 2arried b#
under m# %uidan2e and !uperi!ion for the award of
De%ree in Ma!ter of "u!ine!! Admini!tration of
PUNJAB TECHNICAL UNIVERT!
JALAN"HAR#PUNJAB$. )ndia(
To the be!t of the m# 3nowled%e the report
i- 8mbodie! the wor3 of the 2andidate him5her!elf*
ii- Ha! dul# been 2ompleted*
iii- Fulfl! the requirement of the ordinan2e relatin% to
the M"A de%ree of the Unier!it# and
i- )! up to the de!ired !tandard for the purpo!e of
whi2h i! !ubmitted(

CERTI,ICATE B!THE E/AMINER
T0is is certif1 t0at t0e project entit2ed
THE H",C MUTUAL ,UN"
UBMITTE" B!
je33e1 anandpara Ro22 No4( Enro22ment No4(
Has 5een e6amined 51 t0e undersi7ned as apart of t0e
e6amination for t0e a8ard of Master of Business administration
de7ree of PUNJAB TECNICAL UNIVERIT! JHALAN"ER #PUNJAB$
IN"IA9

Acknowledgement
I express my sincere thanks to my project guide, Designation, Deptt. Finance, for
guiding me right form the inception till the successful completion of the project. I
sincerely acknowledge her for extending their valuable guidance, support for
literature, critical reviews of project and the report and above all the moral support
he had provided to me with all stages of this project.
I would also like to thank the supporting staff Finance & H.R. Deportment, for their
help and cooperation throughout out project
. __________________
Name! "ekke# Anand$a%a
%oll no!
&'A! (()(( *eme+te%

CHA,TER
TO,IC
,AGE
NO
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INTRODUCTION
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O'0ECTI1E OF THE *TUD2
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A'OUT HDFC &UTUAL FUND
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&ETHODOLOG2 OF THE *TUD2
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8UE*TIONARE .3
4
FINDING, RECO&&ENDATION,
CONCLU*ION
.6
9
'I'LIOGRA,H2
6/
CHA,TER - INTRODUCTION
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INTRODUCTION
"he financi al market plays a crucial role in the in the economi c devel opment of
a country by facilitating the allocation of scarce resources. %inanci al markets
essentiall y invol ve the allocation of resources. "his can be thought of as the
brain of the enti re economic system, the locus of central decision9making: i f
they fail, not onl y wil l the sectors profi t be lower than would otherwise have
been, but the performance of the entire economic system may be impaired.
"he effici ency of financial market how ever, depends on the existence of
active and effici ent financi al intermedi ari es in the system. Deposit taking
institutional investor is the important financial intermediaries involved in the
task of allocating assets. 'tructural changes in the financi al market have
induced a reverse trend in fi nancial intermedi ation, i .e. financial
di sintermediation, in whi ch the central rol e of banking is bei ng taken over by
investment institutions and insti tuti onal investors. "he shi ft from a credit9
based system to a financial has ini tiated the process of disi ntermedi ation, and
capital market based factors like insurance, pension funds and mutual funds
are increasingl y playing the central role.
"he reforms have successful l y di smantled the entry barri ers, wi th the resul t
that today there are domesti c and foreign financi al insti tutions, like mutual
funds, broking firms and insurance companies, operati ng in the Indian market.
"he introduction of capi tal ade;uacy norms, prudential regulation and worl d
cl ass regul atory mechani sms to protect the interest of investor, besi des the
strict re;ui rement of di scl osure, have gi ven a boost to the confidence of
domestic and foreign investors. "he Indian economy has slowl y integrated
i tself wi th the global economy and financi al market.
:;at i+ a &<t<al F<nd=
utual 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 cross9section 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. utual fund
issues units to the investors in accordance with ;uantum of money invested by them.
Investors of mutual funds are known as unit holders. "he profits or losses are shared by
the investors in proportion to their investments. "he mutual funds normally come out with
a number of schemes with different investment objectives which are launched from time
to time.
# mutual fund is re;uired to be registered with 'ecurities and (xchange 0oard of India
<'(0I= which regulates securities markets before it can collect funds from the public.
-.- ! How i+ a m<t<al ><nd +et <$=
# mutual fund is set up in the form of a trust, which has sponsor, trustees, asset
anagement -ompany <#-= and custodian. "he trust is established by a sponsor or
more than one sponsor who is like promoter of a company. "he trustees of the mutual
fund hold its property for the benefit of the unit holders. #sset anagement -ompany
<#-= approved by '(0I manages the funds by making investments in various types of
securities.
-ustodian, who is registered with '(0I, holds the securities of various schemes of the
fund in its custody. "he trustees are vested with the general power of superintendence
and direction over #-. "hey monitor the performance and compliance of '(0I
4egulations by the mutual fund.
'(0I 4egulations re;uire that at least two thirds of the directors of trustee company or
board of trustees must be independent i.e. they should not be associated with the
sponsors. #lso, 1>? of the directors of #- must be independent. #ll mutual funds are
re;uired to be registered with '(0I before they launch any scheme. 6owever, !nit "rust
of India <!"I= is not registered with '(0I <as on @anuary 11, *>>*=.
-./ ! :;at i+ Net A++et 1al<e ?NA1@ o> a +c;eme=
"he performance of a particular scheme of a mutual fund is denoted by &et #sset +alue
<&#+=.
utual funds invest the money collected from the investors in securities markets. In
simple words, &et #sset +alue is the market value of the securities held by the scheme.
'ince market value of securities changes every day, &#+ of a scheme also varies on day
to day basis. "he &#+ per unit is the market value of securities of a scheme divided by
the total number of units of the scheme on any particular date. %or example, if the market
value of securities of a mutual fund scheme is 4s *>> lakhs and the mutual fund has
issued 1> lakhs units of 4s. 1> each to the investors, then the &#+ per unit of the fund is
4s.*>. &#+ is re;uired to be disclosed by the mutual funds on a regular basis 9 daily or
weekly 9 depending on the type of scheme.
-.3 ! *co$e >o% DeAelo$ment o> &<t<al F<nd
# utual %und is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. India has a burgeoning population of middle class now estimated
around ,>> million. # typical Indian middle class family can have li;uid savings ranging
from 4s.* to 4s.1> $acs today. Investments in 0anks are li;uid and safe, but with the
falling rate of interest offered by 0anks on Deposits, it is no longer attractive. #t best a
part can be saved in bank deposits, but what is the other sources of investment for the
common manA utual %und is the ready answer. +iewed in this sense globally India is
one of the best markets for utual %und 0usiness, so also for Insurance business. "his is
the reason that foreign companies compete with one another in setting up insurance and
mutual fund business units in India. "he sheer magnitude of the population of educated
white collar employees provides unlimited scope for development of utual %und
0usiness in India.
-.). ! 'ene>it+ o> &<t<al F<nd+

"here are numerous benefits of investing in mutual funds and one of the key reasons for
its phenomenal success in the developed markets like !' and !B is the range of
benefits they offer, which are unmatched by most other investment avenues. 5e have
explained the key benefits in this section. "he benefits have been broadly split into
universal benefits, applicable to all schemes, and benefits applicable specifically to open9
ended schemes.
-. ,%o>e++ional &anagement
"he investor avails of the services of experienced and skilled professionals who are
backed by a dedicated investment research team which analyses the performance
and prospects of companies and selects suitable investments to achieve the
objectives of the scheme.
/. DiAe%+i>ication
utual %unds invest in a number of companies across a broad cross9section of
industries and sectors. "his diversification reduces the risk because seldom do all
stocks decline at the same time and in the same proportion. 7ou achieve this
diversification through a utual %und with far less money than you can do on your
own.
,. ConAenientAdmini+t%ation
Investing n in a utual %und reduces paperwork and helps you avoid many
problems such as bad deliveries, delayed payments and unnecessary follow up with
brokers and companies. utual %unds save your time and make investing easy and
convenient.
). Ret<%n ,otential
.ver a medium to long9term, utual %unds have the potential to provide a higher
return as they invest in a diversified basket of selected securities.
5. Low Co+t+
utual %unds are a relatively less expensive way to invest compared to directly
investing in the capital markets because the benefits of scale in brokerage, custodial
and other fees translate into lower costs for investors.
.. LiB<idit#
In open9ended schemes, you can get your money back promptly at net asset value
related prices from the utual %und itself. 5ith close9ended schemes, you can sell
your units on a stock exchange at the prevailing market price or avail of the facility
of direct repurchase at &#+ related prices which some close9ended and interval
schemes offer you periodically.
6. T%an+$a%enc#
7ou get regular information on the value of your investment in addition to disclosure
on the specific investments made by your scheme, the proportion invested in each
class of assets and the fund managerCs investment strategy and outlook.
4. FleCiDilit#
"hrough features such as regular investment plans, regular withdrawal plans and
dividend reinvestment plans, you can systematically invest or withdraw funds
according to your needs and convenience.
9. C;oice o> *c;eme+
utual %unds offer a family of schemes to suit your varying needs over a lifetime.
-7. :ell Reg<lated
#ll utual %unds are registered with '(0I and they function within the provisions of
strict regulations designed to protect the interests of investors. "he operations of
utual %unds are regularly monitored by '(0I.
--.Unde%+tanding and &anaging Ri+k
#ll investments whether in shares, debentures or deposits involve riskD share value
may go down depending upon the performance of the company, the industry, state
of capital market and the economy: generally, however longer the term, lesser the
risk: companies may default in payment of interestEprincipal on their depositsEbonds
debentures: the rate of interest on investment may fall short of the rate of inflation
reducing the purchasing power.
5hile risk cannot be eliminated, skillful management can minimiFe risk. utual fund
helps to reduce risk through diversification and professional management. "he
experience and expertise of utual %und managers in selecting fundamentally
sound securities and timing their purchases and sales help them to build a
diversified portfolio that minimiFe risk and maximiFes returns.
1*. TaC 'ene>it+
"he incomes under utual %unds are much more "ax efficient than any fixed
income security due to the following benefitsD9
'ection G>$ of the income "ax #ct ,1H31 enables tax free income up to rs
11>>> and dividends from % s are eligible for this benefit.
5hen you invest for over a year, the tax payable on encashment is $ong
term -apitals gains tax at *>?. .nce also get an indexation benefit which
has been approximately G? per year. "his reduces the taxable income and
thus decreases the tax liability.
"here is also an opportunity to set off capital losses against gains from
income schemes.
%ull exemption from capital gains tax as it comes under 'ection 1/(#E(0 of
the income tax #ct.
.ne has to pay tax only when he encash units, but have to pay tax on the
interest earned on other debt instruments every year on an accrual basis,
even though he receives the interest later. "his generates higher post tax
returns compared to other debt instruments.
"ax is just like a monster that frightens a number of individuals through out the
nation. "here are just tow way to fight with this monaterD
. -oncealEDepress Income
. ake tax efficient investments.
)erhaps the second option is far better than the first as it gives the peace of
mind together with a feeling that one is a responsible citiFen of the nation. 5ith
increasing amount of awareness that is taking birth in the minds of investors,
mutual fund has become cynosure of the eye of the several investors.
"he taxes available are two kindsD
. "o the mutual fund9 as explained below in &o 1
. "o the Investor9 as explained below in &o *
-. &<t<al F<nd TaCation
. utual fund is fully exempted from the tax under 'ection1> <*,D= of the
Income "ax #ct1H31.
. It receives all income without deduction at source.
. utual funds do not have to pay tax on trading profit, short term capital gain,
dividend income, underwriting commission, placement fees, long term capital
gains, other income, etc.
/. 'ene>it+ to t;e InAe+to%+
"here are number of benefits that the investor of a mutual fund avail.
"hese are discussed as followsD
.4esident !nit 6olders9 In case of an individual or 6indu !ndivided %amilies
<6!%Is=, income by way of dividends, if any from unit of schemes of the fund
together with other income on specified investmentEdeposit are except from tax
within the overall limit of 4s.11>>>E9 specified under 'ectionG>$ of the I.".
#ct,1H31. 'ince dividends from shares no longer invite dividend tax and hence
the whole limit is available for mutual fund dividends.
. "ax deduction at source9 as per 'ection1H3# of the Income "ax #ct, 1H31, no
deduction of tax at source is made from any income payable to the unit
holders. "his implies that there is no tax deduction at source for redemption up
to any limit.
#s per 'ection1H/k of the I.".#ct 1H31, deduction of tax at source is not made
if the dividend income from a mutual fund does not exceed 4s1>>>> per
annum.
-.5 ! InAe+tment c%ite%ia
Lowe% co+t
It is a lower cost of investment as compare to other mode of investment option in the
market. 6ere the investor can invest a minimum of 4s1>> in the scheme of ($'' <(;uity
$ink 'aving 'cheme=.
Le++ $a$e% wo%k
6ere less paper work is re;uire than other. "he investor give his detail information like
hisEher name,age,address,phone no., pan card no, nominee name and address<in case
of minor= and three full signature of the candided.
No ca+; T%an+action+
Investor need not re;uire paying cash, instead of cash investor has to pay che;ue or
demand draft. 5hich help to prevent misappropriation and also save the tax. 6ere the
investor just writes the product name of mutual fund and sign on it. It also saves the time.
No Age 'a%
"here is no age bar of investor here any age group can invest in mutual fund. In case of
minor<below 1G year= there is a nominee, so a child can invest through his guardian and
a person having age of J> also invest in mutual fund ,which is not possible in other
investments.
*e%Aice o% an# kind o> income g%o<$
# service holder or any kind of income group or a student or unemployed people can
invest in mutual fund but the person is a rational human being having sound knowledge
of investment company.
-6#)"(4 *
O'0ECTI1E OF THE *TUD2
Indian financial system has been expiring the vast effect of globaliFation i.e.
drastic interest rate cut, political disturbances, security scam etc have scattered the
common investorIs perception in selecting various investment portfolio. ost of the
security holders have lost their confidence in newly come9up corporate sectors for
investment. $ooking to the situation, it is ;uite encouraging to analyFe how the 6D%-
utual %und able to trap the deposits by introducing various schemes and how it protects
the interest of the investors.
"he main study is based on the performance and analysis of various schemes
with reference to 6D%- utual %und that is a leading mutual fund industry in India.
"he total performance analysis of financial instruments with reference to the
6D%- utual %und has got objectives. "his are as followsD9
"o know the performance of the different schemes.
"he comparative study of 6D%- utual %und with other mutual funds.
"o know the investment pattern of the investors in different schemes.
"he benefits made from the investment on the different schemes.
"o know the ranking of the 6D%- utual %und 'chemes.
"o know the diversify portfolio of 6D%- utual %und.
"o know the service which 6D%- utual %und is providing to its
investors with compare to other mutual fund

-6#)"(4 ,
A'OUT HDFC E&UTUAL FUND
1. 567 6D%- !"!#$ %!&D
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3.- ! :;# HDFC &<t<al F<nd=
6D%- utual %und is one of the largest mutual funds and well9established fund house in
the country with consistent and above average fund performance across categories since
its incorporation on December 1>, 1HHH. 5hile our past experience does make us a
veteran, but when it comes to investments, we have never believed that the experience is
enough.
O<% InAe+tment ,;ilo+o$;#
"he single most important factor that drives 6D%- utual %und is its belief to give the
investor the chance to profitably invest in the financial market, without constantly
worrying about the market swings. "o realiFe this belief, 6D%- utual %und has set up
the infrastructure re;uired to conduct all the fundamental research and back it up with
effective analysis. .ur strong emphasis on managing and controlling portfolio risk avoids
chasing the latest KfadsL and trends.
:e O>>e%
5e believe, that, by giving the investor long9term benefits, we have to constantly review
the markets for new trends, to identify new growth sectors and share this knowledge with
our investors in the form of product offerings. 5e have come up with various products
across asset and risk categories to enable investors to invest in line with their investment
objectives and risk taking capacity. 0esides, we also offer )ortfolio anagement
'ervices.
O<% Ac;ieAement+
6D%- #sset anagement -ompany <#-= is the first #- in India to have been
assigned the M-4I'I$ %und 6ouse $evel N 1I rating. "his is its highest %und 2overnance
and )rocess Ouality 4ating which reflects the highest governance levels and fund
management practices at 6D%- #- It is the only fund house to have been assigned
this rating for two years in succession. .ver the past, we have won a number of awards
and accolades for our performance
3./ ! *,ON*OR*
Ho<+ing DeAelo$ment Finance Co%$o%ation Limited ?HDFC@. 6D%- was
incorporated in 1HJJ as the first specialiFed ortgage -ompany in India. 6D%- provides
financial assistance to individuals, corporate and developers for the purchase or
construction of residential housing. It also provides property related services <e.g.
property identification, sales services and valuation=, training and consultancy. .f these
activities, housing finance remains the dominant activity. 6D%- has a client base of
around 1* lac borrowers, around G lac depositors, over 1.>G lac shareholders and 1>,>>>
deposit agents, as at arch ,1, *>>G. 6D%- has raised funds from international
agencies such as the 5orld 0ank, I%- <5ashington=, !'#ID, D(2, #D0 and Bf5,
international syndicated loans, domestic term loans from banks and insurance
companies, bonds and deposits. 6D%- has received the highest rating for its bonds and
deposits program for the thirteenth year in succession. 6D%- 'tandard $ife Insurance
-ompany $imited, promoted by 6D%- was the first life insurance company in the private
sector to be granted a -ertificate of 4egistration <on .ctober *,, *>>>= by the Insurance
4egulatory and Development #uthority to transact life insurance business in India.
*tanda%d Li>e InAe+tment+ Limited. "he 'tandard $ife #ssurance -ompany was
established in 1G*1 and has considerable experience in global financial markets. "he
company was present in the Indian life insurance market from 1G/J to 1H,G when
agencies were set up in Bolkata and umbai. "he company re9entered the Indian market
in 1HH1, when an agreement was signed with 6D%- to launch an insurance joint venture.
.n #pril *>>3, the 0oard of "he 'tandard $ife #ssurance -ompany recommended that it
should demutualise and 'tandard $ife plc float on the $ondon 'tock (xchange. #t a
'pecial 2eneral eeting held in ay voting members overwhelmingly voted in favour of
this. "he -ourt of 'ession in 'cotland approved this in @une and 'tandard $ife plc floated
on the $ondon 'tock (xchange on 1>th @uly *>>3. 'tandard $ife Investments is a
leading asset management company, with approximately !'P *3J billion as at arch ,1,
*>>G, of assets under management. "he company operates in the !B, -anada, 6ong
Bong, -hina, Borea, Ireland, )aris, 'ydney and the !'# to ensure it is able to form a
truly global investment view. In order to meet the different needs and risk profiles of its
clients, 'tandard $ife Investments $imited manages a diverse portfolio covering all of the
major markets world9wide, which includes a range of private and public e;uities,
government and company bonds, property investments and various derivative
instruments
3.3 ! TRU*TEE
6D%- "rustee -ompany $imited, a company incorporated under the -ompanies #ct,
1H13 is the "rustee to 6D%- utual %und vide the "rust deed dated @une G, *>>>, as
amended from time to time. 6D%- "rustee -ompany $td is wholly owned subsidiary of
6D%-
T;e 'oa%d o> Di%ecto%+ o> HDFC T%<+tee com$an# Limited con+i+t+ o>
t;e >ollowing eminent $e%+on+.
r. #nil Bumar 6irjee
r. @ames #ird
r. 'hishir B. Diwanji
r. 4anjan 'anghi
r. +. 'rinivasa 4angan
3.) ! Awa%d+ & Accolade+
CN'C ! T1 -4 ! CRI*IL &<t<al F<nd o> t;e 2ea% Awa%d+ /774 ?3 awa%d+@
-. HDFC ,%<dence F<nd was the only scheme that won the -&0- 9 "+ 1G 9 -4I'I$
utual %und of the 7ear #ward *>>G in the &o+t Con+i+tent 'alanced F<nd
<nde% CRI*IL F C,R for the calendar year *>>J <from amongst , schemes=.
/. HDFC Ca+; &anagement F<nd ! *aAing+ ,lan was the only scheme that won
the -&0- 9 "+ 1G 9 -4I'I$ utual %und of the 7ear #ward *>>G in the &o+t
Con+i+tent LiB<id F<nd <nde% CRI*IL F C,R for the calendar year *>>J <from
amongst 1 schemes=.
3. HDFC Ca+; &anagement F<nd ! *aAing+ ,lan was the only scheme that won
the -&0- 9 "+ 1G 9 -4I'I$ utual %und of the 7ear #ward *>>G in the LiB<id
*c;eme E Retail Catego%# for the calendar year *>>J <from amongst 1H
schemes=.
ICRA &<t<al F<nd Awa%d+ /774 ?3 awa%d+@
-. HDFC &F &ont;l# Income ,lan9Long Te%m ,lan9 4anked a *eAen *ta% F<nd
and has been awarded the Gold Awa%d >o% G'e+t ,e%>o%manceG in the category
of GO$en Ended &a%ginal EB<it#G for the three year period ending December ,1,
*>>J <from amongst *J schemes=

/. HDFC Hig; Inte%e+t F<nd ! *;o%t Te%m ,lan 9 4anked a FiAe *ta% F<nd
indicating performance among the top 1>? in the category of GO$en Ended DeDt
! *;o%t Te%mG for one year period ending December ,1, *>>J <from amongst *>
schemes=.
3. HDFC ,%<dence F<nd 9 4anked a FiAe *ta% F<nd indicating performance among
the top 1>? in the category of GO$en Ended 'alancedG for the three year period
ending December ,1, *>>J <from amongst 13 schemes=.
Li$$e% F<nd Awa%d+ /774
-. HDFC EB<it# F<nd ! G%owt; has been awarded the C0est F<nd oAe% Ten 2ea%+H
in the HEB<it# India Catego%#H at the Li$$e% F<nd Awa%d+ /774 <form amongst
*, schemes=. It was awarded the 0est %und over ten years in *>>3 and *>>J as
well. *>>G makes it three in a row
CHA,TER )
,RODUCT & *ER1ICE OF HDFC &UTUAL FUND
1. "7)(' .% !"!#$ %!&D
*. I&+('"(&" )$#&
,. )4.D!-" .% !"!#$
%!&D
).- ! T2,E* OF &UTUAL FUND *CHE&E
?a@ O$en!ended F<ndI *c;eme
#n open9ended fund or scheme is one that is available for subscription and repurchase
on a continuous basis. "hese schemes do not have a fixed maturity period. Investors can
conveniently buy and sell units at &et #sset +alue <&#+= related prices which are
declared on a daily basis. "he key feature of open9end schemes is li;uidity.
?D@Clo+e!ended F<ndI *c;eme
# close9ended fund or scheme has a stipulated maturity period e.g. 19J years. "he fund is
open for subscription only during a specified period at the time of launch of the scheme.
Investors can invest in the scheme at the time of the initial public issue and thereafter
they can buy or sell the units of the scheme on the stock exchanges where the units are
listed. In order to provide an exit route to the investors, some close9ended funds give an
option of selling back the units to the mutual fund through periodic repurchase at &#+
related prices. '(0I 4egulations stipulate that at least one of the two exit routes is
provided to the investor i.e. either repurchase facility or through listing on stock
exchanges. "hese mutual funds schemes disclose &#+ generally on weekly basis.
?c@*ecto% +$eci>ic ><nd+I+c;eme+
"hese are the fundsEschemes which invest in the securities of only those sectors or
industries as specified in the offer documents. e.g. )harmaceuticals, 'oftware, %ast
oving -onsumer 2oods <%-2=, )etroleum stocks, etc. "he returns in these funds are
dependent on the performance of the respective sectorsEindustries. 5hile these funds
may give higher returns, they are more risky compared to diversified funds. Investors
need to keep a watch on the performance of those sectorsEindustries and must exit at an
appropriate time. "hey may also seek advice of an expert.

?d@TaC *aAing *c;eme+
"hese schemes offer tax rebates to the investors under specific provisions of the Income
"ax #ct, 1H31 as the 2overnment offers tax incentives for investment in specified
avenues. e.g. (;uity $inked 'avings 'chemes <($''=. )ension schemes launched by
the mutual funds also offer tax benefits. "hese schemes are growth oriented and invest
pre9dominantly in e;uities. "heir growth opportunities and risks associated are like any
e;uity9oriented scheme.
)./ ! IN1E*T&ENT ,LAN
)./.- ! *2*TE&ATIC IN1E*T&ENT ,LAN ?*I,@
6D%- % 'I) is similar to a 4ecurring Deposit. (very month on a specified date an
amount you choose is invested in a mutual fund scheme of your choice. "he dates
currently available for 'I)s are the -+t, 5t;, -7t;, -5t;, /7t; and t;e /5t; of a month.
7ouIll be amaFed to learn about the many benefits of investing through 6D%- % 'I).
'ene>it - 'ecome A Di+ci$lined InAe+te%
0eing disciplined 9 ItIs the key to investing success. 5ith the 6D%- % 'ystematic
Investment )lan you commit an amount of your choice <minimum of 4s. 1>>> and in
multiples of 4s. 1>> thereofQ= to be invested every month in one of our schemes.
"hink of each 'I) payment as laying a brick. .ne by one, youIll see them transform into
a building. 7ouIll see your investments accrue month after month. ItIs as simple as giving
at least 3 postdated monthly che;ues to us for a fixed amount in a scheme of your
choice. ItIs the perfect solution for irregular investors.
Qinimum amounts may differ for each 'cheme. )lease refer to 'I) (nrolment %orm for
details.
'ene>it / Reac; 2o<% Financial Goal
Imagine you want to buy a car a year from now, but you donIt know where the down9
payment will come from. 6D%- % 'I) is a perfect tool for people who have a specific,
future financial re;uirement. 0y investing an amount of your choice every month, you can
plan for and meet financial goals, like funds for a childIs education, a marriage in the
family or a comfortable postretirement life. "he table below illustrates how a little every
month can go a long way.
&ont;l# *aAing+ ! :;at #o<% +aAing+ ma# gene%ate
*aAing+ $e% mont; "otal amount invested 4ate of return
?>o% -5 #ea%+@ <4s. in $acs=
3.>? G.>? 1>.>?
<rupees in lacs, 11 years later=Q
5777 H.> 1/.3 1J./ *>.H
)777 J.* 11.J 1,.H 13.J
3777 1./ G.G 1>./ 1*.1
/777 ,.3 1.G J.> G.,
-777 1.G *.H ,.1 /.*
Qonthly instalments, compounded monthly, for a 119year period.
Di+claime% "he illustration above is merely indicative in nature and should not be
construed as investment advice. It does not in any manner imply or suggest performance
of any 6D%- utual %und 'cheme<s=. )lease read 4isk %actors.
'ene>it 3 Take AdAantage o> R<$ee Co+t AAe%aging
ost investors want to buy stocks when the prices are low and sell them when prices are
high. 0ut timing the market is timeconsuming and risky. # more successful investment
strategy is to adopt the method called 4upee -ost #veraging. "o illustrate this weIll
compare investing the identical amounts through a 'I) and in one lump sum.
Imagine 'uresh invests 4s. 1>>> every month in an e;uity mutual fund scheme starting
in @anuary. 6is friend, 4ajesh, invests 4s. 1*>>> in one lump sum in the same scheme.
"he following table illustrate how their respective investments would have performed from
@an to DecD
*<%e+;J+ InAe+tment Ra"e+;J+ InAe+tment
&ont; &#+ #mount !nits #mount !nits
0an!7) H.,/1 1>>> 1>J.>>H1 1*>>> 1*G/.1>H1
FeD!7) H.,HH 1>>> 1>3.,H/,
&a%!7) G.1*, 1>>> 1*,.1>J*
A$%!7) G.J1> 1>>> 11/.*G1J
&a#!7) G.>1* 1>>> 1*/.G1*G
0<n!7) G.H*1 1>>> 11*.>//G
0<l!7) H.1>* 1>>> 1>H.G33>
A<g!7) G.,1> 1>>> 1*>.,,3H
*e$!7) J.13G 1>>> 1,*.1,1,
Oct!7) 3./3* 1>>> 11/.J1>H
NoA!7) 3.H,1 1>>> 1//.*JH,
Dec!7) J.3>> 1>>> 1,1.1JGH
Q&#+ as on the 1>th every month. "hese are assumed &#+s in a volatile market
Di+claime% "he illustration above is merely indicative in nature and should not be
construed as investment advice. It does not in any manner imply or suggest performance
of any 6D%- utual %und 'cheme<s=. 4upee -ost #veraging neither ensures you profits
nor protects you from making a loss in declining markets. )lease read 4isk %actors.
#s seen in the table, by investing through 'I), you end up buying more units when the
price is low and fewer units when the price is high. 6owever, over a period of time these
market fluctuations are generally averaged. #nd the average cost of your investment is
often reduced.
#t the end of the 1* months, 'uresh has more units than 4ajesh, even though they
invested the same amount. "hatIs because the average cost of 'ureshIs units is much
lower than that of 4ajesh. 4ajesh made only one investment and that too when the per9
unit price was high.
'ureshIs average unit price R 1*>>>E1/G>.3>1* R 4s. G.1>1
4ajeshIs average unit price R 4s. H.,/1
'ene>t ) G%ow 2o<% InAe+tment :it; Com$o<nded 'ene>it+
It is far better to invest a small amount of money regularly, rather than save up to make
one large investment. "his is because while you are saving the lump sum, your savings
may not earn much interest.
5ith 6D%- % 'I), each amount you invest grows through compounding benefits as
well. "hat is, the interest earned on your investment also earns interest. "he following
example illustrates this.
Imagine &eha is *> years old when she starts working. (very month she saves and
invests 4s. 1,>>> till she is *1 years old. "he total investment made by her over 1 years
is 4s. , lakhs.#rjun also starts working when he is *> years old. 0ut he doesnIt invest
monthly. 6e gets a large bonus of 4s. , lakhs at *1 and decides to invest the entire
amount.
0oth of them decide not to withdraw these investments till they turn 1>. #t 1>, &ehaIs
Investments have grown to 4s. /3,3G,*J,Q whereas #rjunIs investments have grown to
4s. ,3,1J,>G/Q. &ehaIs small contributions to a 'I) and her decision to start investing
earlier than #rjun have made her wealthier by over 4s. 1> lakhs.
Q%igures based on 1>? p.a. interest compounded monthly.
Di+claime% "he"he illustration above is merely indicative in nature and should not be
construed as investment advice. It does not in any manner imply or suggest performance
of any 6D%- utual %und 'cheme<s=. )lease read 4isk %actors.
'ene>it 5 Do All T;i+ E>>o%tle++l#
Investing with 6D%- % 'I) is easy. 'imply give us post9dated che;ues or opt for an
#uto Debit from you bank account for an amount of your choice <minimum of 4s. 1>>>
and in multiples of 4s. 1>> thereofQ= and weIll invest the money every month in a fund of
your choice. "he plans are completely flexible. 7ou can invest for a minimum of six
months, or for as long as you want. 7ou can also decide to invest ;uarterly and will need
to invest for a minimum of two ;uarters.
)././ ! *2*TE&ATIC TRAN*FER ,LAN ?*T,@
'") refers to 'ystematic "ransfer )lan where in an investor invests a lump sum amount
in one scheme and regularly transfers <i.e. switches= a pre9defined amount into another
scheme. (very month on a specified date an amount you choose is transfered from one
mutual fund scheme to another of your choice.
-urrently, %ixed 'ystematic "ransfer )lan <%'")= 9 onthly Interval and -apital
#ppreciation 'ystematic "ransfer )lan <-#'")= 9 onthly Interval facility is available to
the !nit holders on -+t, 5t;, -7t;, -5t;, /7t; and /5t; o> a mont; and %'") 9 Ouarterly
Interval and -#'") 9 Ouarterly Interval facility is available to the !nit holders on -+t, 5t;,
-7t;, -5t;, /7t; and /5t; o> t;e >i%+t mont; of each ;uarter.
"he Ent%# Load *t%<ct<%e for the transferee schemes 9 6D%- 2rowth %und, 6D%-
(;uity %und, 6D%- "op *>> %und, 6D%- -apital 0uilder %und, 6D%- -ore 8 'atellite
%und, 6D%- )remier ulti9-ap %und, 6D%- 0alanced %und, 6D%- )rudence %und,
6D%- $ong "erm #dvantage %und and 6D%- "ax'aver will be as followsD
"he ECit Load *t%<ct<%e is as followsD
%or "ransferee 'chemes D 6D%- $ong "erm #dvantage %und and 6D%- "ax'aver N &il
%or "ransferee 'chemes D 6D%- 2rowth %und, 6D%- (;uity %und, 6D%- "op *>>
%und, 6D%- -apital 0uilder %und, 6D%- -ore 8 'atellite %und, 6D%- )remier ulti9
-ap %und, 6D%- 0alanced %und and 6D%- )rudence %und.
In respect of each investment through '") less than 4s. 1 crore in value, an (xit $oad of
1.*1? is payable if units are redeemed E switched9out on or before * years from the date
of allotment. In respect of each investment through '") e;ual to or greater than 4s. 1
crore in value, no (xit $oad is payable.
"hus, this facility offers the benefits similar to those of an 'I) and is suitable for investors
who intend to invest systematically and currently have funds for investments.
).3 ! ,RODUCT* OF &UTUAL FUND
E8UIT2I GRO:TH FUND
CHILDRENJ* GIFT FUND
LI8UID FUND
DE'TI INCO&E FUND
E8UIT2I GRO:TH FUND DE'TIINCO&E FUND
HDFC G%owt; F<nd
HDFC To$ /77 F<nd
HDFC Co%e and *atellite F<nd
HDFC IndeC F<nd ! *en+eC ,lan
HDFC IndeC F<nd ! *en+eC ,l<+ ,lan
HDFC 'alanced F<nd
HDFC Long Te%m AdAantage F<nd ?EL**@
HDFC Long Te%m EB<it# F<nd
HDFC In>%a+t%<ct<%e F<nd
HDFC Ca$ital '<ilde% F<nd
HDFC ,%emie% &<lti!Ca$
HDFC IndeC F<nd ! Ni>t# ,lan
HDFC A%Dit%age F<nd
HDFC EB<it# F<nd
HDFC ,%<dence F<nd
HDFC TaC*aAe% ?EL**@
HDFC &id!Ca$ O$$o%t<nitie+ F<nd
HDFC &F &ont;l# Income ,lan ! *;o%t
Te%m ,lan
HDFC &<lti$le 2ield F<nd
HDFC Income F<nd
HDFC *;o%t Te%m ,lan
HDFC Gilt F<nd ! *;o%t Te%m ,lan
HDFC Floating Rate Income F<nd !*;o%t
Te%m ,lan
HDFC Ca+; &anagement F<nd ! *aAing+
,l<+ ,lan
HDFC &F &ont;l# Income ,lan ! Long
Te%m ,lan
HDFC &<lti$le 2ield F<nd ! ,lan /775
HDFC Hig; Inte%e+t F<nd
HDFC Hig; Inte%e+t F<nd ! *;o%t te%m
,lan
HDFC Gilt F<nd ! Long Te%m ,lan
HDFC Floating Rate Income F<nd ! Long
Te%m ,lan
CHILDRENJ* GIFT FUND LI8UID FUND
HDFC C;ild%enH+ Gi>t F<nd ! InAe+tment
,lan
HDFC C;ild%enH+ Gi>t F<nd ! *aAing+ ,lan
HDFC LiB<id F<nd
HDFC LiB<id F<nd ,%emi<m ,lan
HDFC LiB<id F<nd ,%emi<m ,l<+ ,lan
HDFC Ca+; &anagement F<nd E Call
HDFC Ca+; &anagement F<nd ! *aAing+
,lan
*O&E ,O,ULAR FUND* ARE EK,LAIN HERE
HDFC G%owt; F<nd
6D%- 2rowth fund, an open9ended growth scheme, applies an investment
approach based on a set of well established but flexible principles that emphasiFe
the concept of sustainable economic earnings cash return on investment. "he
objective is to identify Kbusiness with superior growth prospects nd good
management at a reasonable priceL. "he five basic principles that serve the
foundation for this approach are as followsD
%ocus on the long term
Investment confers proportionate ownership of the business
aintain a margin safety
aintain a balanced outlook on the market
Discipline approach to selling.
"he investment philosophy rests on a two9pronged approach. 3>9G>? of the
portfolio will aim to stay invested for most of the time in large cap stocks that
satisfy the above investment criteria. "his allocation to large cap stocks also
ensures greater li;uidity in the portfolio. *>9/>? of the portfolio will be invested in
companies of scale that are either large market share holder
'a+ic *c;eme In>o%mation,
&ature of 'cheme .pen (nded 2rowth 'cheme
Inception Date 'eptember 11, *>>>
.ptionE)lan Dividend )lan, 2rowth )lan. "he Dividend )lan
offers Dividend )ayout and 4einvestment %acility.
,lan name NA1 Date NA1 Aal<e
DiAidentd $lan 1G #ug *>>G *H.>*J>
G%owt; $lan 1G #ug *>>G 1G.H,J>
T;e a++et allocation <nde% t;e *c;eme will De a+ >ollow+ D
*%.no T#$e o> In+t%<ment+ No%mal
Allocation
?L o> Net A++et@
No%mal
Allocation
?L o> Net A++et@
Ri+k ,%o>ile
- (;uity 8 (;uity related
instruments
G>91>> >> edium to high
/
Debt 'ecurities, oney
arket instruments 8
-ash
<including money at call=
>>9*>
>> $ow to medium
Ret<%n+
HDFC G%owt;
F<nd
?NA1 a+ at eAal<ation date, R+.
,e% <nit@
53.)6/
Date ,e%iod NA1 Ret<%n+?L@ MM
N
'enc;ma%k
Ret<%n+?L@O
&a%c; 37, /776 $ast /1G days /1./31 1,.G1QQ *.,JQQ
DecemDe% /4,
/776
$ast 'ix months <1G1
days=
JH.33J> 9,*.GGQ 9,,.,GQ
0<ne /9, /776 $ast 1 7ear <,3J days= 1/.3H1 9*.**QQ 9G.>JQQ
0<ne 37, /775 $ast , 7ears <1>H3
days=
*1./HH *J.HJQQ *,.*1QQ
0<ne 37, /773 $ast 1 7ears <1G*J
days=
1>.G*H ,J.1GQQ ,>.1QQ
0<ne 37, -994 $ast 1> 7ears <,31,
days=
&.# &.#. 11.*1QQ
*e$temDe% --,
/777
'ince Inception <*G/H
days=
1>.>>> *,.H3QQ 1/.//QQ
Q #bsolute 4eturns QQ -ompounded #nnualised 4eturns S '(&'(T
U Due to an over all sharp rise in the stock prices
V )ast performance may or may not be sustained in the future
*I, Ret<%n+
*I, InAe+tment+ *ince Ince$tion 5 2ea% 3 2ea% - 2ea%
Total Amo<nt InAe+ted ?R+.@ H/,>>>.>> 3>,>>>.>> ,3,>>>.>> 1*,>>>.>>
&a%ket 1al<e a+ on 0<ne 37, /774 ,,G,3G>.3/ 111,J11.,H /,,J/G.1G H,G1J.,3
Ret<%n+ ?Ann<ali+ed@PL ,1.G/? *3.3/? 1,.1>? 9,1.//?
'enc;ma%k Ret<%n+ **.JJ? *>.3/? 3.JJ? 9,3.11?
S '(&'(T
0enchmark 0'( 'ensex DisclaimerD
"he above investment simulation is for illustrative purposes only and should not be
construed as a promise on minimum returns and safeguard of capital. "he #- E utual
%und is not guaranteeing or promising or forecasting any returns. 'I) does not assure a
profit or guarantee protection against a loss in a declining market. )lease refer 'I)
(nrolment %orm or contact nearest I'- for 'I) $oad 'tructure
HDFC TO,!/77 FUND
InAe+tment OD"ectiAe
"he investment objective is to generate long term capital appreciation from a portfolio of
e;uity and e;uity linked instruments. "he investment portfolio for e;uity and e;uity linked
instruments will be primarily drawn from the companies in the 0'( *>> Index. %urther,
the 'cheme may also invest in listed companies that would ;ualify to be in the top *>> by
market capitaliFation on the 0'( even though they may not be listed on the 0'( "his
includes participation in large I).s where in the market capitaliFation of the company
based on issue price would make the company a part of the top *>> companies listed on
the 0'( based on market capitaliFation
'a+ic *c;eme In>o%mation
Nat<%e o> *c;eme O$en Ended G%owt; *c;eme
Ince$tion Date .ctober 11, 1HH3
O$tionI,lan Dividend )lan,2rowth )lan. "he Dividend )lan offers
Dividend )ayout and 4einvestment %acility.
,lan Name NA1 Date NA1 Amo<nt
DiAidend ,lan 1G #ug *>>G ,G.*H
G%owt; ,lan 1G #ug *>>G 1*H.13
InAe+tment ,atte%n
"he 'cheme may also invest upto *1? of net assets of the 'cheme in derivatives such
as %utures 8 .ptions and such other derivative instruments as may be introduced from
time to time for the purpose of hedging and portfolio balancing and and other uses as
may be permitted under the regulations and guidelines.
"he 'cheme may also invest a part of its corpus, not exceeding />? of its net assets, in
overseas markets in 2lobal Depository 4eceipts <2D4s=, #D4s, overseas e;uity, bonds
and mutual funds and such other instruments as may be allowed under the 4egulations
from time to time.
Ret<%n+
HDFC To$ /77
F<nd
?NA1 a+ at eAal<ation date, R+.
,e% <nit@
--5.)/)
Date )eriod &#+ 4eturns<?= PP
V
0enchmark
4eturns<?=S
&a%c; 37, /776 $ast /1G days 1>/.1>/ G.*/QQ /./1QQ
DecemDe% /4,
/776
$ast 'ix months <1G1
days=
13J.GGG> 9,1.*1Q 9,J.1,Q
0<ne /9, /776 $ast 1 7ear <,3J days= 1*>.,/ 9/.>3QQ 9G.G1QQ
0<ne 37, /775 $ast , 7ears <1>H3
days=
1J.,/, *3.*,QQ *1.*QQ
0<ne 37, /773 $ast 1 7ears <1G*J
days=
*,.,1G ,J.3QQ *H./,QQ
0<ne 37, -994 $ast 1> 7ears <,31,
days=
1*.J/H *J.1*QQ 1J.11QQ
OctoDe% --, -99. 'ince Inception </*G> 1>.>>> *1.,QQ 11.1GQQ
days=
*I, Ret<%n+
*I, InAe+tment+ *ince
Ince$tion
-7 2ea% 5 2ea% 3 2ea% - 2ea%
Total Amo<nt InAe+ted
?R+.@
1/1,>>>.>> 1*>,>>>.>> 3>,>>>.>> ,3,>>>.>> 1*,>>>.>>
&a%ket 1al<e a+ on 0<ne
37, /774
G,1,1,1./1 1G>,1*H.>/ 11,,,J1.>* /1,331.*H H,G/,.>1
Ret<%n+ ?Ann<ali+ed@PL *J.G1? *H.31? *1.JJ? H.J,? 9,1.3/?
'enc;ma%k Ret<%n+ 1G.,*? *>.*1? 1G.H>? 1.G*? 9,G./>?
'enc;ma%k ! '*E /77
DisclaimerD "he above investment simulation is for illustrative purposes only and should
not be construed as a promise on minimum returns and safeguard of capital. "he #- E
utual %und is not guaranteeing or promising or forecasting any returns. 'I) does not
assure a profit or guarantee protection against a loss in a declining market. )lease refer
'I) (nrolment %orm or contact nearest I'- for 'I) $oad 'tructure
HDFC E E8UIT2 FUND
6D%- (;uity %und is an open9ended growth scheme, which aims to generate
long9term capital appreciation. "he scheme maintains a focused portfolio
predominantl y of large cap stocks, through there is control led exposure to mid
caps. "he schemes however always remain di versified across sectors.
oreover, the sectoral allocation i s done keeping in mind to diversi fy across
sectors weakl y co9related to each other to further reduce risk. "he underl ying
theme whi le managi ng the scheme i s to invest in businesses that are
sustai nable and for good ;uali ty.
'a+ic *c;eme In>o%mation
Nat<%e o> *c;eme O$en Ended G%owt; *c;eme
Ince$tion Date @anuary >1, 1HH1
O$tionI,lan Dividend )lan,2rowth )lan. "he Dividend )lan offers
Dividend )ayout and 4einvestment %acility.
,lan Name NA1 Date NA1 Amo<nt
DiAidend ,lan 1G #ug *>>G ,3.13,>
G%owt; ,lan 1G #ug *>>G 113.J33>
InAe+tment *t%ateg#
In order to provide long term capital appreciation, the 'cheme will invest predominantly in
growth companies. -ompanies selected under this portfolio would as far as practicable
consist of medium to large siFed companies whichD
are likely achieve above average growth than the industry:
enjoy distinct competitive advantages, and
have superior financial strengths.
"he aim will be to build a portfolio, which represents a cross9section of the strong
growth companies in the prevailing market. In order to reduce the risk of volatility,
the 'cheme will diversify across major industries and economic sectors
InAe+tment ,atte%n
"he asset allocation under the 'cheme will be as follows D
*%.No. A++et T#$e ?L o> ,o%t>olio@ Ri+k ,%o>ile
- (;uities and (;uity 4elated Instruments G> 9 1>> edium to 6igh
/ Debt 8 oney arket Instruments > 9 *> $ow to edium
Investment in 'ecuritised debt, if undertaken, would not exceed *>? of the net assets of
the scheme.
"he 'cheme may also invest upto *1? of net assets of the 'cheme in derivatives such
as %utures 8 .ptions and such other derivative instruments as may be introduced from
time to time for the purpose of hedging and portfolio balancing and other uses as may be
permitted under the 4egulations.
"he 'cheme may also invest a part of its corpus, not exceeding />? of its net assets, in
overseas markets in 2lobal Depository 4eceipts <2D4s=, #D4s, overseas e;uity, bonds
and mutual funds and such other instruments as may be allowed under the 4egulations
from time to time. #lso refer to the 'ection on )olicy on off9shore Investments by the
'cheme<s=.
If the investment in e;uities and related instruments falls below J>? of the portfolio of the
'cheme at any point in time, it would be endeavored to review and rebalance the
composition.
&ot with standing anything stated above, subject to the regulations, the asset allocation
pattern indicated above may change from time to time, keeping in view market
conditions, market opportunities, applicable regulations and political and economic
factors. It may be clearly understood that the percentages stated above are only
indicative and are not absolute and that they can vary substantially depending upon the
perception of the #-, the intention being at all times to seek to protect the &#+ of the
scheme. 'uch changes will be for short term and defensive considerations. )rovided
further and subject to the above, any change in the asset allocation affecting the
investment profile of the 'cheme and amounting to a change in the %undamental
#ttributes of the 'cheme shall be effected in accordance with sub9regulation <11#= of
regulation 1G of '(0I regulations.
Ret<%n+
HDFC EB<it#
F<nd
?NA1 a+ at eAal<ation date, R+.
,e% <nit@
-)3.-6-
Date ,e%iod NA1 Ret<%n+ ?L@ M
M N
'enc;ma%k Ret<%n+
?L@ O
&a%c; 37, /776 $ast /1G days 1/*.3>* >.,*QQ 1./JQQ
DecemDe% /4,
/776
$ast 'ix months <1G1
days=
*1H.G1J> 9,/.GGQ 9,H.,GQ
0<ne /9, /776 $ast 1 7ear <,3J days= 131.,1, 91,.,,QQ 911.1HQQ
0<ne 37, /775 $ast , 7ears <1>H3
days=
J,.J3G */.J1QQ 1G.GJQQ
0<ne 37, /773 $ast 1 7ears <1G*J
days=
*H.H3> ,3.3GQQ *H.>,QQ
0<ne 37, -994 $ast 1> 7ears <,31,
days=
J.*G> ,/.3JQQ 1J.J1QQ
0an<a%# -, -995 'ince Inception </H*H
days=
1>.>>> *1.JGQQ H.**QQ
Q #bsolute 4eturns QQ -ompounded #nnualised 4eturns S '8) -&T 1>>
V )ast performance may or may not be sustained in the future
*I, Ret<%n+
*I, InAe+tment+ *ince
Ince$tion
-7 2ea% 5 2ea% 3 2ea% - 2ea%
Total Amo<nt InAe+ted
?R+.@
13*,>>>.>> 1*>,>>>.>> 3>,>>>.>> ,3,>>>.>> 1*,>>>.>>
&a%ket 1al<e a+ on 0<ne
37, /774
1,/H/,J1,.H* 3/3,/H>.31 1>J,H>/.1* ,G,HHG.3J H,/>G.1J
Ret<%n+ ?Ann<ali+ed@PL *H.1,? ,1.33? *,.J1? 1.*J? 9,J.1*?
'enc;ma%k Ret<%n+ 13.1G? 1H.JJ? 1J.13? ,.*1? 9/>.*J?
Di+claime%
"he above investment simulation is for illustrative purposes only and should not be
construed as a promise on minimum returns and safeguard of capital. "he #- E utual
%und is not guaranteeing or promising or forecasting any returns. 'I) does not assure a
profit or guarantee protection against a loss in a declining market. )lease refer 'I)
(nrolment %orm or contact nearest I'- for 'I) $oad 'tructure.
HDFC In>%a+t%<ct<%e F<nd
InAe+tment OD"ectiAe
"o seek long9term capital appreciation by investing predominantly in e;uity and e;uity related
securities of companies engaged in or expected to benefit from growth and development of
infrastructure.
'a+ic *c;eme In>o%mation
Nat<%e o> *c;eme Clo+e Ended EB<it# *c;eme wit; a mat<%it# $e%iod o> 3
#ea%+ >%om t;e date o> allotment wit; a<tomatic
conAe%+ion into an o$en!ended +c;eme <$on mat<%it# o>
t;e *c;eme.
Ince$tion Date &a%c; -7, /774
O$tionI,lan DiAidend O$tion, G%owt; O$tion. DiAidend O$tion
c<%%entl# o>>e%+ wit; $a#o<t >acilit# onl#
,lan Name NA1 Date NA1 Amo<nt
G%owt; O$tion 1G #ug *>>G G.,G,>
DiAidend O$tion 1G #ug *>>G G.,G,>
InAe+tment ,atte%n
"he asset allocation under the respective )lans will be as followsD
T#$e o> In+t%<ment+ &inim<m
Allocation ?L o>
Net A++et+@
&aCim<m
Allocation?L o>
Net A++et+@
Ri+k ,%o>ile o> t;e
In+t%<ment
EB<it# and EB<it# Related
In+t%<ment+ o>
in>%a+t%<ct<%e I in>%a+t%<ct<%e
%elated com$anie+
31? 1>>? edium to 6igh
EB<it# and EB<it# Related
In+t%<ment+ o> com$anie+
ot;e% t;an mentioned aDoAe
>? ,1? edium to 6igh
DeDt *ec<%itie+ and &one# >? ,1? $ow to edium
&a%ket In+t%<ment+P and
FiCed Income De%iAatiAe Q
Q Investments in securitiFed debt shall not normally exceed ,>? of the net assets of the
'cheme. "he 'cheme may seek investment opportunity in %oreign 'ecurities <max. ,1?
of net assets=. "he 'cheme may take derivatives position for hedging, portfolio balancing
or to undertake any other strategy as permitted under '(0I 4egulations from time to time
<max. *>? of the net assets= based on the opportunities available subject to '(0I
4egulations.
Ret<%n+
HDFC In>%a+t%<ct<%e
F<nd
?NA1 a+ at eAal<ation date, R+.
,e% <nit@
6.)4
Date )eriod &#+ 4eturns <?=
PP V
0enchmark 4eturns
<?= S
&a%c; 37, /776 $ast /1G days &.# &.#. 1./JQQ
DecemDe% /4, /776 $ast 'ix months <1G1
days=
&.# &.#. 9,H.,GQ
0<ne /9, /776 $ast 1 7ear <,3J days= &.# &.#. 911.1HQQ
0<ne 37, /775 $ast , 7ears <1>H3
days=
&.# &.#. 1G.GJQQ
0<ne 37, /773 $ast 1 7ears <1G*J
days=
&.# &.#. *H.>,QQ
0<ne 37, -994 $ast 1> 7ears <,31,
days=
&.# &.#. 1J.J1QQ
&a%c; -7, /774 'ince Inception <11* 1>.>>> 9*1.*Q 91G./1Q
days=
Q #bsolute 4eturns QQ -ompounded #nnualised 4eturns S '8) -&T 1>>
U Due to an overall sharp rise in the stock prices
V )ast performance may or may not be sustained in the future
FC ,%<dence F<nd
InAe+tment OD"ectiAe
"he investment objective of the 'cheme is to provide periodic returns and capital
appreciation over a long period of time, from a judicious mix of e;uity and debt
investments, with the aim to preventE minimiFe any capital erosion.
'a+ic *c;eme In>o%mation
Nat<%e o> *c;eme O$en Ended 'alanced *c;eme
Ince$tion Date %ebruary >1, 1HH/
O$tionI,lan Dividend )lan, 2rowth )lan. "he Dividend )lan offers
Dividend )ayout and 4einvestment %acility.
Ret<%n+
HDFC ,%<dence
F<nd
?NA1 a+ at eAal<ation date, R+.
,e% <nit@
--/..64
Date )eriod &#+ 4eturns <?= P
P V
0enchmark 4eturns
<?= S
&a%c; 37, /776 $ast /1G days 11>.1,* 1.G/QQ 3.>1QQ
DecemDe% /4,
/776
$ast 1G1 days 13>.3GJ> 9*H.GGQ 9**.JQ
0<ne /9, /776 $ast 1 7ear <,3J days= 1*/.J13 9H.3QQ 91.,,QQ
0<ne 37, /775 $ast , 7ears <1>H3
days=
3/.3G* *>.,QQ 11.,GQQ
0<ne 37, /773 $ast 1 7ears <1G*J
days=
1H.*,> /*.,JQQ 1H.,1QQ
0<ne 37, -994 $ast 1> 7ears <,31,
days=
11./G> *3.GQQ &.#.
FeD%<a%# -, -99) 'ince Inception <1*3,
days=
1>.>>> *>./1QQ &.#.
Q #bsolute 4eturns QQ -ompounded #nnualised 4eturns
S -4I'I$ 0alanced %und Index U Due to an overall sharp rise in the stock prices
V )ast performance may or may not be sustained in the future
PP #djusted for the dividends declared under the scheme prior to its splitting into the
Dividend and 2rowth )lan
InAe+tment *t%ateg#
#s outlined above, the investments in the 'cheme will comprise both debt and e;uities.
"he %und would invest in Debt instruments such as 2overnment securities, money
market instruments, securitiFed debts, corporate debentures and bonds, preference
shares, ;uasi 2overnment bonds, and in e;uity shares. In the long term, the mix
between debt instruments and e;uity instruments is targeted between 3>D/> and />D3>
respectively. "he exact mix will be a function of interest rates, e;uity valuations, reserves
position, risk taking capacity of the portfolio without compromising the consistency of
dividend payout <in the case of Dividend )lan=, need for capital preservation and the
need to generate capital appreciation.
%und anager
&%. ,ea+ant 0ain
&%. an and Ladd 9 Dedicated %und anager 9 %oreign 'ecurities
InAe+tment ,atte%n
"he following table provides the asset allocation of the 'chemeCs portfolio.
"he asset allocation under the respective )lans will be as followsD
Reno. T#$e o> In+t%<ment+ No%mal Allocation
?L o> Net A++et+@
Ri+k ,%o>ile
- (;uities 8 (;uity related instruments /> 9 J1? edium to 6igh
/ Debt 'ecurities, oney arket
instruments<including cashEcall money=
*1 9 3>? $ow to edium
<Investment in 'ecuritiFed debt, if undertaken, would not exceed 1>? of the net assets of
the 'cheme.=
HDFC Ca$ital '<ilde% F<nd
6D%- -apital 0uilder %und, an open9ended growth scheme, aims to invest in
strong companies at prices that below fair value in the opinion of the fund managers. "he
investment approach is based on the philosophy that value may be uncovered only
where the crowd has not discovered it yet. In the opinion of the fund managers such
value exists in good ;uality well managed Kneglected Kstocks. "he current neglect in
these companies by the broad market participants can be due to various factors such as
difficult recent market conditions, major restructuring charges, +4' expenses or other
such onetime effects that may subdue profits in the near term. "his also usually results in
the shares of such companies being relatively illi;uid.
5hile assuming such relative risk adjusted li;uidity risk the fund managers
propose to capitaliFe on expected pick up reported earning as result of strong growth
prospects in the future. "his eventually translates in to more li;uidity depending on the
success of this strategy. 'uch opportunities are available in large companies as well as
small companies. 5hile there are no criteria for stock selection based on market
capitaliFation the endeavor is to keep a balance of companies in the portfolio between big
and small companies, on one category overwhelming the other
'a+ic *c;eme In>o%mation
Nat<%e o> *c;eme O$en Ended G%owt; *c;eme
Ince$tion Date %ebruary >1, 1HH/
O$tionI,lan Dividend )lan, 2rowth )lan. "he Dividend )lan offers Dividend
)ayout and 4einvestment %acility.
,lan Name NA1 NA1 Amo<nt
Date
DiAidend ,lan 1G
#ug
*>>G
**.>J1
G%owt; ,lan 1G
#ug
*>>G
3H.H1G
InAe+tment ,atte%n
"he asset allocation under the 'cheme will be as followsD
*%.No. A++et T#$e ?L o> ,o%t>olio@ Ri+k ,%o>ile
- (;uities and (;uity 4elated Instruments !pto 1>>? edium to 6igh
/ Debt 8 oney arket Instruments &ot more than *>? $ow to edium
Investment in 'ecuritiFed debt, if undertaken, would not exceed *>? of the net
assets of the scheme. "he 'cheme may also invest upto *1? of net assets of the
'cheme in derivatives such as %utures 8 .ptions and such other derivative
instruments as may be introduced from time to time for the purpose of hedging
and portfolio balancing and other uses as may be permitted under regulations and
guidelines.
"he 'cheme may also invest a part of its corpus, not exceeding />? of its net
assets, in overseas markets in 2lobal Depository 4eceipts <2D4s=, #D4s,
overseas e;uity, bonds and mutual funds and such other instruments as may be
allowed under the 4egulations from time to time. #lso refer to the 'ection on
)olicy on off9shore Investments by the 'cheme<s=.
*I, Ret<%n+
*I, InAe+tment+ *ince
Ince$tion
-7 2ea% 5 2ea% 3 2ea% - 2ea%
Total Amo<nt InAe+ted
?R+.@
1J,,>>>.>> 1*>,>>>.>> 3>,>>>.>> ,3,>>>.>> 1*,>>>.>>
&a%ket 1al<e a+ on 0<ne
37, /774
GH>,1,1./* /3,,J1*.>G 1>,,,/H./> ,J,1,H.,/ H,*/*.13
Ret<%n+ ?Ann<ali+ed@PL *>.11? *1.11? *1.H*? *.J/? 9,H.J,?
'enc;ma%k Ret<%n+ 11.>/? 1H.JJ? 1J.13? ,.*1? 9/>.*J?
,a+t $e%>o%mance ma# o% ma# not De +<+tained in t;e ><t<%e
Q $oad is not taken into consideration and the 4eturns are of 2rowth )lan E .ption.
Investors are advised to refer to the 4elative )erformance table furnished as above for
non9'I) returns
Ret<%n+
HDFC Ca$ital
'<ilde% F<nd
?NA1 a+ at eAal<ation date, R+.
,e% <nit@
.).-.9
Date ,e%iod NA1 Ret<%n+?L@ M 'enc;ma%k
M N Ret<%n+?L@O
&a%c; 37, /776 $ast /1G days 3>., 1.>GQQ 1./JQQ
DecemDe% /4, /776 $ast 'ix months <1G1
days=
1>1.1*,> 9,G.H3Q 9,H.,GQ
0<ne /9, /776 $ast 1 7ear <,3J
days=
J,.*J 91*.,3QQ 911.1HQQ
0<ne 37, /775 $ast , 7ears <1>H3
days=
,J./J/ 1H.3*QQ 1G.GJQQ
0<ne 37, /773 $ast 1 7ears <1G*J
days=
1,.11J ,J.,*QQ *H.>,QQ
0<ne 37, -994 $ast 1> 7ears <,31,
days=
J./G> *,.H3QQ 1J.J1QQ
FeD%<a%# -, -99) 'ince Inception
<1*3, days=
1>.>>> 1,.J3QQ J.H1QQ
Q #bsolute 4eturns QQ -ompounded #nnualised 4eturns
S '8) -&T 1>>
V )ast performance may or may not be sustained in the future
'enc;ma%k ! * & , CNK 577 DisclaimerD
"he above investment simulation is for illustrative purposes only and should not be
construed as a promise on minimum returns and safeguard of capital. "he #- E utual
%und is not guaranteeing or promising or forecasting any returns. 'I) does not assure a
profit or guarantee protection against a loss in a declining market. )lease refer 'I)
(nrolment %orm or contact nearest I'- for 'I) $oad 'tructure.
-6#)"(41
%or the purpose of fulfillment of masters degree in business administration i had
undertaken HDFC!m<t<al ><nd at Bota branch . I had an opportunity to get proper
working knowledge about the internal workings of utual funds dept.
"he single most important factor that drives 6D%- utual %und is its belief to give
the investor the chance to profitably invest in the financial market, without constantly
worrying about the market swings.
I had chosen the HDFC!m<t<al ><nd as it is one of the most highly reputed
mutual fund all over the I&DI# and offers under study training to students during summer.
I had the job of convincing investors to choose 6D%- mutual funds over others. %or this
purpose I also maintained a database of all the investors who had been approached.
oney is a valuable asset and it is obvious that people think many times before
investing their money into any kind of funds. "hey fre;uently ask ;uestions about the
time period, interest rates, current status of the share market, etc which re;uires good
running knowledge in the field. It was not very easy to accomplished my task.
"he largest amount of investment was made by r. D #0ID ,an amount of 1,1>,>>> , in
the scheme 6D%-9 e;uity fund for a duration of years.
.ther investors were
NA&E InAe+tmen
t t#$e
Amo<nt 'cheme D<%ation
-. &D A'ID *I, /,777 6D%- 24.5"6 %!&D 1 7(#4
/. *HOAI' ARHTER *I, -,777 6D%- ".) *>> %!&D 1 7(#4
3. DE'ENDRA NATH ,AUL One time -,77,777 6D%- (O!I"7 %!&D , 7(#4
). NAS& US SA&A *I, -,777 6D%- 24.5"6 %!&D 1 7(#4
5. &D A'ID ONE TI&E -,57,777 6D%- (O!I"7 %!&D * 7(#4
.. NI*HIT HE&ANI *I, /,777 6D%- 24.5"6 %!&D 1 7(4#
6. D% NE2AS AH&ED *I, -,777 6D%- 24.5"6 %!&D 1 7(4#
4. RHALID *ADAT *I, /,777 6D%- ".) *>> %!&D 1 7(#4
9. CHANDU LAL GU,TA *I, -,777 6D%- ".) *>> %!&D 1 7(#4
-7. NI*HIT HE&ANI ONE TI&E 57,777 6D%- (O!I"7 %!D * 7(#4
--. &D ,ER:ES ALA& *I, -,777 6D%- 0#$#&-(D %!&D 1 7(#4
-/. 0U'AIR RHAN *I, -,777 6D%- 0#$#&-(D %!&D 1 7(#4
-3. D T &OHANT2 *I, -,777 6D%- 24.5"6 %!&D 1 7(#4
-). ,RARA*H 0HA *I, -,777 6D%- ".) *>> %!&D 1 7(#4
-5. RHALID *ADAT One time -,77,777 6D%- (O!I"7 %!&D , 7(#4
-.. A&IT DAGA *I, /,777 6D%- 24.5"6 %!&D 1 7(#4
-6. 1IRRANT GU,TA *I, -,777 6D%- 24.5"6 %!&D * 7(#4
-4. RA0E*H RU&AR *I, -,777 6D%- 24.5"6 %!&D 1 7(4#
-9. &D A*IF *I, -,777 6D%- 24.5"6 %!&D 1 7(4#
/7. &ASAR RHAN *I, -,777 6D%- ".) *>> %!&D 1 7(#4
/-. 'I*:A0IT RAI *I, -,777 6D%- ".) *>> %!&D 1 7(#4
//. NARENDRA NATH ,AUL *I, -,777 6D%- 24.5"6 %!&D * 7(#4
/3. HAR,REET RAUR *I, -,777 6D%- 0#$#&-(D %!&D 1 7(#4
/). *O&A AGAR:AL *I, -,777 6D%- (O!I"7 %!D 1 7(#4
During the training period I managed to convince people to make investment in 6dfc
utual funds. "he total amount of transaction I provided was about 4s J,>>,>>>
CHA,TER .
&ETHODOLOG2
OF
THE *TUD2
1. 4('(#4-6 ("6.D.$.27
*. '.!4-(' .% D#"#
-.$$(-"I.&
,. 67)."6('I' .% "6(
'"!D7
/. D#"# -.$$(-"I.& 8
#&#$7'I'
..- ! Re+ea%c; &et;odolog#
'ince the study undertaken by me is related to the study of mutual fund in India,
the means adopted for collection of various facts and data were in the form of personal
observation, officials documents, and directly interacting with the officers concerned and
also directly interacting with the existing customers as well as new customer formed. It
was an exploratory research. 5ork is mainly emphasiFed on the primary data. )rimary
data are gathered form prescribed ;uestionnaire and by personal interview and the
secondary data are collected from different books and magaFines.
../ ! *o<%ce+ o> Data collection
"here are two sources of data collection. "hey areD
-. ,RI&AR2 DATA *OURCE
/. *ECONDAR2 DATA *OURCE
"he secondary data are those, which have already been collected by someone else
thorough 0ooks, Internet, "elevision, journals, agaFines, etc. .n the other hand primary
data does not exist here. "he researcher has to gather primary data afresh for the
specific study undertaken by him. )rimary data has been collected here by ;uestionnaire
method and personal interview method is followed. )rimary sources such as Interviews,
.bservation, and attending training and development classes. 'econdary sources such
as 0ooklets, onthly journal, agaFines, .fficial files etc.
..3 ! H2,OTHE*I* OF THE *TUD2
%or doing the dissertation topic Kperformance of mutual fund analysis I took the
hypothesis of certain groups. I divide the total population on the basis of their age,
income, gender, occupation and status.
ale jobholders within the age group of */9/>.
%emale jobholders within the age group of */9/>.
ale jobholders above the age />.
%emale jobholders above the age />.
Individual having the income in the range of 1lkh9,lkh per annum.
Individual having the income above ,lkh per annum.
In 4ajasthan i.e. rural area it is still a new concept so it will take some more time to really
penetrate into this market apart from people who are 6&IIs though these people are
given more emphasis by all the utual funds and distribution channels. 5ith the
introduction of 'I)Is the industry has created some options clear for retail investors to
enter this market. y survey says that it the awareness level that is playing acting as an
obstacle in the growth of utual fund Industry in 4ajasthan as a whole. )eople in
@halawar are now opening up and interested in looking forward for certified investment
planners to help them designing their investment portfolio. 4ajasthan as a market was
not that efficient few years back, but now with lot of multinational companies and other
reputed companies coming down, the 4ajasthan market is slowly picking up. %or mutual
funds it is one of the emerging markets that can be trapped form its developing stage and
though people of rural areas prefer oderate risk they can easily accept mutual funds.
utual fund Industry is delivering a splendid performance and will of course continue in
coming future. 0ut that can be only possible as the distribution channels like Barvy, 0ajaj
finance and 0anks i.e. -iti 0ank, 6D%- 0ank, I-I-I 0ank and 'tandard -hartered 0ank
along with all #sset anagement -ompany.
..) ! Data Collection & Data Anal#+i+
No o> %e+$ondent ! /77
&ale ! -35
Female ! .5
N<mDe% o> %e+$ondent+ Acco%ding to age g%o<$+
-4 to 37 T 55

37 to )7 T 47
9:;
<;
=
;=
9==
9;=
male female
&e!pondent
;;
>=
?=
0;
=
0=
?=
<=
>=
9==
9> to :; :; to ?; ?; to ;; ;; 7
aboe
&e!pondent

)7 to 57 T )7

57 aDoAe T/5

T;e +<%Ae# i+ cond<cted on a +am$le o> /77 $eo$le w;ic; incl<de+ --7
male+ and 97 >emale+. T;e +am$le contain+ con+<me%+ >%om all t;e
age g%o<$+ +o t;at an ideal +am$le can De oDtained.
-. InAe+tment AAen<e+ aAailaDle in t;e ma%ket, t;at inAe+to% a%e
awa%e o>=
)ostal schemes
2overnment securities
Direct e;uity investment
0ank %DIs
utual funds
Insurance
INFERENCE
Acco%ding to t;e inAe+to%+ in Rota, 33L o> inAe+to%+ $%e>e% to de$o+it
t;e%e mone# in Dank FDJ+. :;e%e a+ 4L o> t;e inAe+to%+ want to inAe+t in $o+tal
+c;eme, )L in goAe%nment +ec<%it#, -5L inAe+t in di%ect eB<it# /7L o> inAe+to%+
t;e# $%e>e% m<t<al ><nd & in+<%ance, a+ t;e%e inAe+tment ;o<+e w;ic; i+ not Ae%#
;ig;, D<t at t;e +ame time m<t<al ><nd conce$t i+ g%owing
/. &o%e att%actiAe aDo<t m<t<al ><nd+=
4eturns
oderate risk
"ax benefits
6assle free
)ast performance
5ell regulated
&o idea
.
INFRENCE
Acco%ding to $eo$le o> Rota t;e# att%act wit; $a+t $e%>o%mance o> t;e
com$an# i> com$an# $a+t %eco%d+ i+ good t;en t;e# inte%e+ted to inAe+t. A>te% t;at
$eo$le att%act wit; taC Dene>it t;en %et<%n on inAe+tment
3. ,e%centage o> enti%e inAe+tment incl<de+ m<t<al ><nd+=
0elow *>?
*> to 1>?
1> to G>?
G>? above
INFRENCE
'# t;i+ we come to know t;at mo+t o> t;e $eo$le <+e to go >o% m<t<al ><nd
a+ we can +ee D# t;e aDoAe g%a$; t;at 43 $eo$le >%om /77 goe+ >o% /7L to57L
inAe+tment in &<t<al F<nd+.
). Fo% InAe+tment+ in &<t<al F<nd, w;ic; com$an# inAe+to%+
$%e>e%=
6D%- %
#0& #4. %
)4!D(&"I#$ I-I-I %
4($I#&-( %
0I4$# '!&$I%(
INFERENCE
Acco%ding to t;e InAe+to%+ in Rota 35L o> inAe+to%+ $%e>e% to inAe+t in
HDFC m<t<al ><nd, /6L o> inAe+to%+ $%e>e% Reliance m<t<al ><nd w;e%e a+ 'i%la
+;a%e -/L and ICICI D# -6L.D<t onl# 9L inAe+to%+ inAe+t in A'N A&RO m<t<al
><nd. I ;aAe com$a%ed t;e+e >iAe ><nd ;o<+e Deca<+e t;e# a%e t;e main
com$etito%+ in Rota.
5. How do inAe+to%+ manage ;i+ inAe+tment $o%t>olio=
'olely of my own
.n advise of a friend
.n advise of a distributorEagent
.n advise of your banker
.n advice of mutual fund house people
INFRENCE
Acco%ding to m# +<%Ae# mo+t no o> $eo$le manage ;i+ inAe+tment $o%t >olio
D# own, 4) $eo$le o<t o> /77 manage ;i+ $o%t>olio D# own and )5 & 3. $eo$le
manage wit; t;e ;el$ o> Danke%+ and &F ;o<+e
.. *aAing+IinAe+tment aAen<e+ 5 #ea% Dack=
0ank %D, 'avings
Insurance
utual funds
(;uity market
2ovt. securities
4eal estate
)ostal savings, %D
INFRENCE
Acco%ding to m# +<%Ae# De>o%e 5 #ea% mo+t o> t;e $eo$le?--3@ o> Rota cit#
inAe+ted ;i+ mone# in in+<%ance +ecto% and 97 $eo$le o<t o> /77 inAe+ted in Dank
FD. '<t onl# )3 $eo$le o<t o> /77 inAe+t in m<t<al ><nd w;ic; wa+ Ae%# low
6. Among t;e ;<ge n<mDe% o> $eo$le going >o% m<t<al ><nd, in
w;ic; kind o> ><nd t;e# no%mall# inAe+t=
(;uity .riented
Debt .riented
0alanced .riented
INFERENCE
In t;e cit# like Rota in Detween t;e age g%o<$ -4!37, ./L inAe+to% inAe+ted in
eB<it# o%iented, and onl# -4L $eo$le inAe+t in deDt ><nd. '<t g%o<$ o> $eo$le mo%e
t;an 57 #ea% 55L inAe+to% inAe+t in deDt ><nd and onl# /3L $eo$le inAe+t in eB<it#
><nd. It mean #o<nge% $eo$le att%act wit; eB<it# ><nd and old man att%act
wit; deDt ><nd. D<t in Dalanced ><nd eAe%# g%o<$+ a%e eB<all# inAe+t
4. Ri+k a$$etite o> $eo$le in Ra"e+t;an ,%e>e%%ed Ri+k and Ret<%n
6igh risk high return ?H,H@
oderate risk moderate return ?&,&@
$ow risk low return ?L,L@
INFERENCE
Acco%ding to t;e +<%Ae#, we can concl<de t;at, $eo$le in %<%al a%ea+
mo+tl# DelieAe in &ode%ate %i+k, and mode%ate %et<%n+. EAen m<t<al ><nd+ ;aAe
mode%ate %i+k and t;e %et<%n i+ B<ite le++ t;an a+ it i+ in ca+e o> eB<itie+. *o, >o%
t;e $eo$le o> R<%al a%ea+ m<t<al ><nd+ a%e t;e %ig;t kind o> inAe+tment o$tion.
9. How +e%io<+l# $eo$le in Rota t;ing aDo<t <nde%going a >inancial
$lanning >o% t;em=
2e+
No
INFRENCE
Acco%ding to m# +<%Ae# o> Rota $eo$le , mo+t no o> $eo$le a%e mo%e +e%io<+
aDo<t >inancial $lanning
CHA,TER 6
8UE*TIONARE
Ouestionnaire
,lea+e >ill <$ t;e B<e+tionnai%e acco%ding to t;e B<e+tion+ a+ked. ?0<+t $<t on a tick ma%k
UVW w;e%eAe% needed@
Name 9 _______________________________________________________
Age 9 W*>9,>X *eC %
W ,>9/>
W />91>
W 1>9aboveX
Occ<$ation 9 'ervice <2ovt.=
'ervice <)vt.=
0usiness
'elf9employed
4etired
O%ganiXation 9 _______________________________________________________
De+ignation ! _______________________________________________________
Ann<al Income 9 0elow 1 lakh
1 N , lakh
, N 1 lakh
#bove 1 lakh
-. :;at a%e t;e InAe+tment AAen<e+ aAailaDle in t;e ma%ket, t;at #o< a%e
awa%e o>=
)ostal schemes <i.e. I'E))%E&'-E4.DE".D etc.=
2overnment securities
0ank %DIs
Direct e;uity investment
utual funds
Insurance
/. A%e #o< awa%e o> t;e >act t;at +ome o> t;e $e%>o%ming &<t<al ><nd +c;eme+
in t;e ind<+t%# ;aAe $o+ted /7L Y ann<aliXed %et<%n+ in la+t -7 #ea%+=
7es &o
3. In #o<% $oint o> Aiew w;at i+ mo%e att%actiAe aDo<t m<t<al ><nd+=
4eturns 6assle free
oderate risk )ast performance
"ax benefits 5ell regulated
&o idea
). I> #o< ;aAe inAe+ted in &<t<al ><nd+, w;at $e%centage o> #o<% enti%e inAe+tment
incl<de+ m<t<al ><nd+=
0elow *>? 1> to G>?
*> to 1>? G>? above
5. :;at we%e #o<% *aAing+IinAe+tment aAen<e+ 5 #ea% Dack=
0ank %D, 'avings Insurance
utual funds (;uity market
2ovt. securities 4eal estate
)ostal savings, %D
.. Now, w;at new aAen<e+ a%e incl<ded in #o<% InAe+tment $o%t>olio=
2ovt. securities utual funds
Insurance Derivatives
(;uity market
4eal estate
6. How do #o< manage #o<% inAe+tment $o%t>olio=
'olely of my own
.n advise of a friend
.n advise of a distributorEagent
.n advise of your banker
.n advice of mutual fund house people
4. How do #o< %ate t;e+e w;ile taking an inAe+tment deci+ion= ?Rate a+ -,/,3,),5
acco%ding to $%e>e%ence@
4eturns 4isk factors
$ock9in period past performance
"ax benefits
9. 2o< DelieAe in Z
6igh risk, 6igh returns
oderate risk, moderate returns
$ow risk, low returns
-7. HaAe #o< Deen eAe% a$$%oac;ed D# a Ce%ti>ied InAe+tment Financial ,lanne%=
7es &o
--. :o<ld #o< like to <nde%go a >inancial $lanning eCe%ci+e >o% #o<%+el>=
7es &o
CHA,TER 4
FINDING, RECO&&ENDATION,
&
CONCLU*ION
FINDING*
In India utual fund Industry has seen Dramatic improvements in Ouality as well as
;uality of products and services offering over the past decade, but the industry has
witnessed growth in the last 1> years considerably below potential. "he #sset under
anagement have grown from about 4s. /J> billion in march 1HH, to 4s. 1,1/> billion in
#pril *>>/<-#24 of 11./ percent= 8 now it grown to 4s. 1,3*> billion till sep *>>G. "his
has mainly achieved due to collection through mutual fund I).Is that has been
increasing due to the investors feeling that it is cheaper in its I). stage on account of its
4s. 1> &#+.
"here has been a strong appreciation in e;uities in comparison to the debt market, which
has shown a downward trend last year. #nd in turn id9cap and diversified funds have
delivered the highest in comparison to other funds. #s the Indian economy is showing a
growing trend with 2D) more than 3? and expected to show G? and Indian household
saving being */? of the entire 2D). "here is a strong growth potential of utual fund
industry in India.
In 4ajesthan i.e. rural area it is still a new concept so it will take some more time to really
penetrate into this market apart from people who are 6&IIs though these people are
given more emphasis by all the utual funds and distribution channels. 5ith the
introduction of 'I)Is the industry has created some options clear for retail investors to
enter this market. y survey says that it the awareness level that is playing acting as an
obstacle in the growth of utual fund Industry in 4ajesthan as a whole.
*ome o> t;e &a"o% Finding+
1. It is found that 6D%- is a favorable utual %und.
*. "he basis objective behind investments are mainly long9term capital appreciation,
current income 8 to some extent tax benefits.
,. "he performance of 6D%- -ore 8 'atellite 8 6D%- "op *>> %und is very good.
/. It is seen that the investment in growth fund is very high. 0ecause the scope of
income and capital appreciation in the long term.
1. It is observed that the driving aspects of investments in mutual fund are safety,
fund performance, 'ervice, $i;uidity, return 8 tax benefits.
3. "he type of investment plan that most investor s prefer is to get principal safety at
all time with low returns rather than high return with no safety.
J. 6D%- utual %und does not provide Mmonthly income schemeI which other
mutual funds have and performance is very appreciable.
G. %und anagers have suggested 6D%- prudence ,6D%- "ax'aver , 6D%- (;uity
for investment , %or the top 1.
H. 6D%- )rudence is performing good with comparison to the prudence fund of any
other mutual fund house.
1>. #t this period of time when market condition is not so good, it is better for investors
to invest through 'ystamatic Investment plan. 5hich reduces the market risk.
RECO&&ENDATION
6D%- utual %und is one of the largest mutual funds and well9established fund house in
the country with consistent and above average fund performance across categories since
its incorporation on December 1>,1HHH."he single most important factor that drives
6D%- utual %und is its belief to give the investor the chance to profitably invest in the
financial market, without constantly worrying about the market swings.

*ome ma"o% %ecommendation
-@ %und managers should continuous Investor awareness )rograms to make
the investors aware of technicalities of fund management and the return
aspects.
/@ #gents, 'ervice personnel must be able to give correct and timely
information about &#+ and the return on different schemes.
3@ onthly income scheme should be introduced.
)@ 'cheme should be offered as per the needs and the re;uirement of the
industries.
5@ "he regulatory norms provided by the regulatory authorities like '(0I are
re;uired to be known to all including investors.

CONCLU*ION
"he global financial market has transformed from 'ellerIs market to 0uyerIs market with
liberaliFation, 2lobaliFations and privatiFation. "he Indian mutual fund market has also
become global when foreign funds entered, they came up with probably best marketing
strategies to beat Indian giants like 0I4$#, 6D%-, and I-I-I have come up with
aggressive strategies to beat the foreign funds. &ow the cutthroat competition goes on
and on.
6D%- utual funds have rewarded investors with hand some returns. "he good news is
that this is poised to become a trend. "he mutual funds have strengthened their
distribution networks, become more transparent and investor friendly and are rewarding
investors. "he mutual fund is finally, proving itself as a vehicle of safety for investments.
0ut it is still the fund managerIs investment philosophy that makes the difference
between the winner and the losers.

-areful market analysis, consumer segmentation, identification of investor needs, service
designing are to be carried out for the successful implementation of different schemes by
mutual fund organiFations. 4egulatory measures by '(0I should be clearly explained to
the investors. )ositioning of the schemes and their branding will help a lot for growth of
the industry. -reativity and innovation are the means of marketing in the days to come for
Indian mutual fund market.
-6#)"(4 H
'I'LIOGRA,H2
&AGASINE*
INDIA TODA2
'U*INE** :ORLD
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