project report on hdfc mutual funds

7/27/2019 project report on HDFC mutual funds

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Introduction


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INTRODUCTION TO PROJECT

An investment means employment of funds on assets (i.e. securities or mutual

funds or any of the investment avenues) with the aim of earning of income as well

as capital appreciation. There are mainly two attributes while investing to any ofthe means, i.e. time and risk. There are mainly four objectives, which the

investments activities will carry on those are:

Return Risk Liquidity Safety

There are many alternatives which investment avenues are open to the investors to

suit their needs and nature .The selection of investment alternatives are depends upon the required level of return and the risk tolerance level. These alternatives range

from financial securities to traditional non-securities investment.

Following are the various investment alternatives.

Negotiable and fixed income securities

Equity shares Preference share Debentures Bonds Government securities

Non-negotiable securities

Bank deposit Post office deposit NBFC deposit Tax saving schemes Public provident fund scheme National saving scheme Life insurance Mutual funds Real estate Securities


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Companies raise funds to finance their projects through various methods. The

promoters can bring their own money or barrow from the financial institutions or

Mobilizes capital by issuing securities. The funds `may be raised through issue of

fresh share at per or premium. Preference shares debenture or global depository

Receipts. These are mainly two markets which any company can raise their funds;those are primary market and secondary market .the companies raise funds for the

following purposes:

To promote a new company To expand an existing company To diversify the production To meet the regular working capital requirement To capitalize the reserves.

New Issue Market (Primary Market)

Stock available for the first time is offered through new issue market. The issuer

may be a new company or an existing company. These issues may be of new type

or the secure used in the past. In the new market the issuer can be consider as a

manufacturers. The issuing house, investing banker and broker act as the channel

of distributing for new issue. They take the responsibility of selling the stock to the

public.The main survives function of the primary market are:

1. Origination2. Underwriting3. Distribution

The main objectives of NSE are as follows.

To establish the nationwide trading facility for Equities, Debt instrumentsand hybrids.

To ensure equal access to investors all over the country through appropriatecommunication network.

To enable shorter settlement cycle and book entry settlement system.


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Mutual Funds

A mutual fund is a type of professionally managed collective investment vehicle

that pools money from many investors to purchase securities. While there is no

legal definition of the term "mutual fund", it is most commonly applied only to

those collective investment vehicles that are regulated and sold to the generalpublic. They are sometimes referred to as "investment companies" or "registered

investment companies." Most mutual funds are "open-ended," meaning investors

can buy or sell shares of the fund at any time. Hedge funds are not considered a

type of mutual fund.

Mutual Fund Operation Flow Chart

Types of Mutual Funds

There are 3 principal types of mutual funds in the United States: open-end funds,

unit investment trusts (UITs); and closed-end funds.

Open-end funds

Open-end mutual funds must be willing to buy back their shares from their

investors at the end of every business day at the net asset value computed that day.

Most open-end funds also sell shares to the public every business day; these shares

are also priced at net asset value. A professional investment manager oversees the


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portfolio, buying and selling securities as appropriate. The total investment in the

fund will vary based on share purchases, share redemptions and fluctuation in

market valuation. There is no legal limit on the number of shares that can be

issued.

Open-end funds are the most common type of mutual fund. At the end of 2011,there were 7,581 open-end mutual funds in the United States with combined assets

of $11.6 trillion.

Closed-end funds

Closed-end funds generally issue shares to the public only once, when they are

created through an initial public offering. Their shares are then listed for trading on

a stock exchange. Investors who no longer wish to invest in the fund cannot sell

their shares back to the fund (as they can with an open-end fund). Instead, they

must sell their shares to another investor in the market; the price they receive maybe significantly different from net asset value. It may be at a "premium" to net

asset value (meaning that it is higher than net asset value) or, more commonly, at a

"discount" to net asset value (meaning that it is lower than net asset value). A

professional investment manager oversees the portfolio, buying and selling

securities as appropriate.

At the end of 2011, there were 634 closed-end funds in the United States with

combined assets of $239 billion.

Unit investment trusts

Unit investment trusts or UITs issue shares to the public only once, when they are

created. UITs generally have a limited life span, established at creation. Investors

can redeem shares directly with the fund at any time (as with an open-end fund) or

wait to redeem upon termination of the trust. Less commonly, they can sell their

shares in the open market.

Unit investment trusts do not have a professional investment manager. Their

portfolio of securities is established at the creation of the UIT and does not change.

At the end of 2011, there were 6,022 UITs in the United States with combined

assets of $60 billion.


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Investments and classification

Mutual funds are normally classified by their principal investments, as described in

the prospectus and investment objective. The four main categories of funds are:

money market funds bond or fixed income funds, stock or equity funds Hybrid funds.

Money market funds

Money market funds invest in money market instruments, which are fixed income

securities with a very short time to maturity and high credit quality. Investors often

use money market funds as a substitute for bank savings accounts, though moneymarket funds are not government insured, unlike bank savings accounts.

Money market funds strive to maintain a $1.00 per share net asset value, meaning

that investors earn interest income from the fund but do not experience capital

gains or losses. If a fund fails to maintain that $1.00 per share because its securities

have declined in value, it is said to "break the buck". Only two money market

funds have ever broken the buck: Community Banker's U.S. Government Money

Market Fund in 1994 and the Reserve Primary Fund in 2008.

At the end of 2011, money market funds accounted for 23% of open-end fundassets.

Bond funds

Bond funds invest in fixed income or debt securities. Bond funds can be sub

classified according to the specific types of bonds owned (such as high-yield or

junk bonds, investment-grade corporate bonds, government bonds or municipal

bonds) or by the maturity of the bonds held (short-, intermediate- or long-term).

Bond funds may invest in primarily U.S. securities (domestic or U.S. funds), in

both U.S. and foreign securities (global or world funds), or primarily foreign

securities (international funds).

At the end of 2011, bond funds accounted for 25% of open-end fund assets.


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Stock or equity funds

Stock or equity funds invest in common stocks which represent an ownership share

(or equity) in corporations. Stock funds may invest in primarily U.S. securities

(domestic or U.S. funds), in both U.S. and foreign securities (global or worldFunds), or primarily foreign securities (international funds). They may focus on a

specific industry or sector. A stock fund may be sub classified along two

dimensions: (1) market capitalization and (2) investment style (i.e., growth vs.

blend/core vs. value). The two dimensions are often displayed in a grid known as a

"style box."

Hybrid funds

Hybrid funds invest in both bonds and stocks or in convertible securities. Balanced

funds, asset allocation funds, target date or target risk funds and lifecycle or

lifestyle funds are all types of hybrid funds. Hybrid funds may be structured as

funds of funds, meaning that they invest by buying shares in other mutual funds

that invest in securities. Most fund of funds invest in affiliated funds (meaning

mutual funds managed by the same fund sponsor), although some invest in

unaffiliated funds (meaning those managed by other fund sponsors) or in a

combination of the two. At the end of 2011, hybrid funds accounted for 7% of the

assets in all U.S. mutual funds

Advantages of Mutual Funds

Increased diversification Daily liquidity Professional investment management Ability to participate in investments that may be available only to larger

investors

Service and convenience Government oversight


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Disadvantages

Fees Less control over timing of recognition of gains Less predictable income No opportunity to customize


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I ntroduction to

Bank


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PROFILE

India is a developing country and we all know that banking sector plays a very

important role. In development with the increasing use of banking and finance in

every field, new trends in their technology and modern use are being evolved day

to day to meet the requirements. In fact BANKING has become the need of

today.

The purpose of PROJECT REPORT is to expose the students in the market and in

the field of banking, finance and investments and to develop the ability in the

students to deal with all types of customers.

Preparing project report in the summer vacations and undergoing the summer

training is the indispensable part of the college period. It provides the opportunityto review what we have gained in the training period and also provides the way to

convey the knowledge and ideas to others.

The present project provides the information on the HDFC BANK.

Learning is not possible in solitude and has to have the support and able guidance

of some people around us in various roles and capacities. The satisfaction and

euphoria that accompanies the successful completion of any task would be

incomplete without the mention of the people who made it possible becausesuccess is the epitome of hard work, undeterred missionary zeal, fast

determination, and consideration.

Therefore, we consider it a pleasant duty to express our heartiest appreciation,

gratitude, and indebtedness to our project guide Mr. Nitish Dipankar for his keen

interest, sincere extortion, invaluable and pain taking excellent guidance,

continuous calm endurance, inspiration and encouragement during each phase of

the present project.

HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was amongst the

first to receive an "in principle" approval from the Reserve Bank of India (RBI) to

set up a bank in the private sector, as part of RBI"s liberalization of the Indian

Banking Industry in 1994. The bank was incorporated in August 1994 in the name


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of "HDFC Bank Limited", with its registered office in Mumbai, India. HDFC Bank

commenced operations as a Scheduled Commercial Bank in January 1995.

History

HDFC is India's premier housing finance company and enjoys an impeccable trackrecord in India as well as in international markets. Since its inception in 1977, the

Corporation has maintained a consistent and healthy growth in its operations to

remain the market leader in mortgages. Its outstanding loan portfolio covers well

over a million dwelling units. HDFC has developed significant expertise in retail

mortgage loans to different market segments and also has a large corporate client

base for its housing related credit facilities. With its experience in the financial

markets, strong market reputation, large shareholder base and unique consumer

franchise, HDFC was ideally positioned to promote a bank in the Indianenvironment.

MANAGEMENT (DIRECTORS)

Vision

To evolve and position the bank as a world class progressive, cost effective and

customer friendly institution providing comprehensive financial and related

services; integrating frontiers of technology and serving various segments of

society especially the weaker sections; committed to excellence in serving the

public and also excelling in corporate values

Mr. C M Vasudev Mr. Aditya Puri Mr. Keki Mistry Mrs. Renu Karnad Dr. Pandit Palande Mr. Partho Datta Mr. Bobby Parikh Mr. A. N. Roy Mr. Vijay Merchant Mr. Paresh Sukthankar


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Mission

Our business mission emphasizes the following:

o Increase our market share in Indias expanding banking and financialservices industry by following a disciplined growth strategy focusing

on quality and not on quantity and delivering high quality customerservice.

o Leverage our technology platform and open scale able systems todeliver more products to more customers and to control operating

costs.

o Maintain our current high standards for asset quality throughdisciplined credit risk management.

o Develop innovative products and services that attract our targetedcustomers and address inefficiencies in the Indian financial sector.

o Continue to develop products and services that reduce our cost offunds.

o Focus on high earnings growth with low volatility.Values

The values that drive us underscore our commitment to:

Customer FocusedBe someone who places customers and their needs at the forefront whiledeveloping and managing their financial solutions.

Mutual RespectBuild mutual respect by being an equal partner, who knows and willingly

shares, helping people go further, rather than walking ahead and leading them, or

walking behind and following.

Worthy of TrustBuild trust by choosing the right path, rather than the easy path and tell the

truth the way it is. Be someone who keeps promises, meets commitments and

behaves with integrity at all times.


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WinningBe positive and confident; seize every moment, every day, with a winning

perspective, fearlessly facing the uncertainties of life.

Products & Services

Deposits Savings Account

Recurring Deposit

Fixed Deposits

Current Accounts

Loans Priority Sector Loans

Housing Loan

Home Enhancement Loans

Personal Loan

Education Loan

Car Loans

Business Loans

Other Services RI Services

Gold Card Schemes

RBI Citizens' Charter including cash and deposits

Locker FacilitiesRTGS

EFT

HDFC e-funds Transfer

Tax Payment

E-bill Payments


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Deposit Accounts

You may open different type of accounts with us such as, savings accounts, term

deposits, and current accounts including 'No Frills' Account etc with us. You may

open such accounts in the following styles)

i. Singleii. Joint

iii. Joint (Either or Survivor)iv. Joint (Former or Survivor)v. Joint (Latter or Survivor)

vi. Or in any other styleThe above may be opened by you with or without nomination facility. We will

explain the implications of the foregoing accounts as also the nomination facilities

at the time of opening of the account.We will also inform you about liquid deposit facility, sweep account and similar

types of products offered by us and their implications and procedures involved, at

the time of opening of account.

'No Frills' Account

We will make available a basic banking 'No Frills' Account either with 'nil' or

very low minimum balances. The charges applicable for various services/ products

in such an account will be indicated in a separate Tariff Schedule. The nature and

number of transactions in such accounts may be restricted, which will be madeknown to you at the time of opening of the account in a transparent manner.

Special Accounts

We will make our best efforts to make it easy and convenient for our special

customers like senior citizens, physically challenged persons and illiterate persons

to bank with us. This will include making convenient policies, products and

services for such applicants and customers.

We will inform the procedure for opening of the account and other terms and

conditions to blind /other physically challenged persons provided he/she calls on

the Bank personally along with a witness who is known to both such person and

the bank.

Normally no cheque book facility is provided to illiterate persons and blind

persons. However, to meet periodic repayment of retail loans, utility bills etc. we

will consider issuing of cheque book with safeguards to protect your interest.


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Dormant/ Inoperative Accounts

We will

a. tell you when you open your account, what period of inoperation of theaccount would render your account being classified as dormant/ inoperative

account. You will also be informed three months before your account is

classified as dormant, inoperative or treated as unclaimed account and the

consequences including the charges for reactivation thereof as per the Tariff

Schedule;

b. tell you the procedure to be followed if you want to activate the account .Closing Your Account

Under normal circumstances, we will not close your account without giving you atleast 30 days notice. Examples of circumstances, which are not 'normal', include

improper conduct of account etc. In all such cases, you will be required to make

alternate arrangements for cheques already issued by you and desist from issuing

any fresh cheques on such account.

Clearing Cycle / Collection Services

We will

a. tell you about the clearing cycle for local instruments and the outstationinstruments including details such as when you can withdraw money after

lodging collection instruments and when you will be entitled to earn delayed

interest as per our Cheque Collection Policy.

b.provide details, if we offer immediate credit for outstation cheques,including the applicable terms and conditions, such as the limit up to which

instruments tendered by you can be credited, operating accounts

satisfactorily, etc.

c.proceed as per our cheque collection policy and provide all assistance foryou to obtain a duplicate cheque/instrument in case a cheque instrument

tendered by you is lost in transit

d. give the above information when you open your account and whenever youask us. If there is any change in our policy, the revised policy will be

displayed on our website and at all our branches.


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Cash Transactions

We will accept cheques/ cash and dispense cash at counters wherever your account

is maintained. We will exchange soiled/mutilated notes and/ or small coins at such

of our branches as per RBI Directives.

For transactions above a specified amount we may require you to furnish yourPAN Number.

Safe Deposit Lockers

We will give you the complete details of the rules and the procedures applicable

for the safe deposit lockers and also safe deposit of valuables, in case we offer the

service.

Foreign Exchange Services

a. When you buy or sell foreign exchange, we will give you information on theservices, details of the exchange rate and other charges which apply toforeign exchange transactions. If this is not possible, we will tell you how

these will be worked out.

b. If you want to transfer money abroad, we will tell you how to do this andwill give you:

i. A description of the services and how to use them;ii. Details of when the money you have sent abroad should get there and

the reasons for delays, if any.

iii. The exchange rate applied when converting to the foreign currency (ifthis is not possible at the time of the transaction, we will let you know

later what the rate is);

iv. Details of any commission or charges, which you will have to pay anda warning that the person receiving the money may also, have to pay

the foreign bank's charges.

v. We will tell you if the information provided by you for making apayment abroad is adequate or not. In case of any discrepancies or

incomplete documentation, we will advise you immediately and assist

you to rectify/complete the same.

vi. If money is transferred to your bank account from abroad, we will tellyou the original amount received and charges if any levied. If the

sender has agreed to pay all charges, we will not take any charges

when we pay the money into your account.


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vii. We will guide you about regulatory requirements or conditionsrelating to foreign exchange services offered by us as and when

requested by you.

viii. In case of delay beyond the day when the amount is due for credit,you will be compensated (a) for any loss on account of interest for due

period beyond the due date and (b) also for adverse movement of

forex rate as per the compensation policy of the bank.

ix. All certificates required to be issued under regulatory/statutoryinstructions will be issued free of charge.

Product and Services

(1)Regular Savings Account

A savings account designed to meet your day to day banking needs while giving

you 24X7 accesses to your bank. Basic feature of the account shall be as under:-

Features

Access a wide network of branches and ATMs across the country to meet allyour banking needs.

Free Net Banking (on request) for convenient banking. Use National Electronic Funds Transfer (NEFT) to transfer funds from your

HDFC Bank account to any account in another Bank at locations specified

by the RBI.

Enjoy Free IVR based Phone Banking (Agent assisted calls will becharged*).

Get free quarterly account statements. Access your account with your free ATM Card. Enjoy free cash and cheque deposits at branches and ATMs. Get free cash withdrawals at any bank's ATM with your Debit Card*.


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Minimum Balance in AccountMinimum Balance Rs. 10,000 (Metro / Urban Branches)

Rs. 5000 (Semi Urban/ Rural Branches)

Premium Salary Account

A customized salary account for select corporate, backed by priority service.

Special offers and benefits such as a free zero balance account for you and your

family. This account comes with free Personal Accidental Death Cover of Rs 5 lac.

Features

Zero Balance Savings Account Free Personal Accidental Death Cover of Rs. 5 lakhs* Free Titanium Debit Card with ATM cash withdrawal limit of Rs. 50,000/-

per day and shopping limit of Rs. 75,000/- per day

Free access to other bank ATMs in India 5 free cash withdrawal and

balance enquiry transactions per month

Free payable at par chequebookOne per quarter Free add-on International Debit Card Free Zero Balance Salary Family Account for your family members with

same benefits as your salary account

Regular Current Account

Ideal low cost account for businesses that operate in one city. With free access to

one of the most advanced and secure Net Banking and Mobile Banking services.


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Features

Get convenient inter-city banking and free cheque payments anywhere. Free Collections of funds through RTGS and NEFT Free Payments through NEFT. Nominal charges for RTGS payments Transfer funds across cities between HDFC Bank accounts at a nominal

charge of Rs.15 per transactions

Issue free Demand Drafts (DD) / Pay Order for values above Rs.100,000.For Demand Drafts up to Rs.50,000 a charge of Rs.40, Demand Drafts

above Rs.50,000 and below Rs.100,000 a charge of Rs.25 will be levied.

Get a payable-at-par cheque book at a nominal price.Regular Fixed Deposit

You no longer need to choose between great rates and safety for your Fixed

Deposit.

How does it work?

Easy investment with High Returns Great rates, flexibility and security - in one offering Higher rate of interest on Fixed Deposit for Senior Citizen Convenience of booking deposit through Net Banking

Loans & Cards

Credit Cards Personal Loan Business Loans Home Loan Car Loans Two Wheeler Loans


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Loans Against Assets Educational Loan Debit Cards

Investments & Insurance

Life Insurance Motor Insurance Travel Insurance Home Insurance Wealth Services Investment Products

Online Services & Tools

Credit Card Eligibility Check Recharge your Mobile Track your application status - Card, Loan Online Tax payment Religious Offerings

ATM facility

All the eligible HDFC-Central card holders will be issued HDFC BANK Credit

Card free of issuance fee for the first year of issuance, subject to ICICI Banks

eligibility criteria for issuance of credit card.

EFT

EFT System has been introduced by RBI at selected centers for faster andeconomical remittance of funds (inter bank/ intra bank). It facilitates quick

movement of money from the bank account of one customer to the bank account of

another customer. In this system the sender and the receiver of funds may be

located in different cities and may even bank with different Bank.


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Benefits:

- There is no upper Limit of amount being transferred

- Funds are transferred within 24 hours

- Frauds in processing paper instruments are avoided

- RBI-EFT has inbuilt security measures- Beneficiary need not to go to the Bank. Amount is credited to his bank account

directly.

SWOT ANALYSIS

The various strengths, weakness, opportunity and threats of the HDFC BANK. unit

are as fallow: -

Strengths high profitability and revenue skilled workforce experienced business units monetary assistance provided existing distribution and sales networks domestic market

Weaknesses

tax structureOpportunities

growth rates and profitability income level is at a constant increase new products and services

Threats

growing competition and lower profitability increase in labor costs


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LITERATURE REVIEW

Arzu Tektas et al (2005) states that An efficient asset-liability management

requires maximizing banks' profit as well as controlling and lowering various risks.

This multi-objective decision problem aims to reach goals such as maximization of

liquidity, revenue, capital adequacy, and market share subject to financial, legal

requirements and institutional policies. This paper models asset and liability

management (ALM) in order to show how different managerial strategies affect the

financial wellbeing of banks during crisis.

Brent Finlay states that avoiding the top 7 business financing mistakes is a key

component in business survival. The key is to understand the causes and

significance of each so that the company is in a position to make better decisions.

No Monthly Bookkeeping No Projected Cash Flow Inadequate Working Capital Poor Payment Management Poor Credit Management No Recorded Profitability No Financing Strategy

Harris (2005) from the perspective of the chief financial officer, the concept of

working capital management is relatively straightforward: to ensure that theorganization is able to fund the difference between short-term assets and short-term

liabilities. In practice, though, working capital management has become the

Achilles' heel of scores of finance organizations, with many CFOs struggling to

identify core working capital drivers and the appropriate level of working capital.

As a result, companies can be limited in their ability to weather unforeseen or

adverse events andensure that cash is readily available where it is needed,

regardless of the circumstances. By Understanding the role and drivers of workingcapital management and taking steps to reach the 20 "right" levels of working

capital, companies can minimize risk, effectively prepare for uncertainty and

improve overall performance.


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Maynard E. Rafuse (1996) Argues that attempts to improve working capital by

delaying payment to creditors is counter-productive to individuals and to the

economy as a whole. He claims that altering debtor and creditor levels for

individual tiers within a value system will rarely produce any net benefit. Proposesthat stock reduction generates system-wide financial improvements and other

important benefits. Urges those organizations seeking concentrated working capital

reduction strategies to focus on stock management strategies based on lean

supply-chain techniques.

M.K. Kolay (1997) writes the article which analyses the pros and cons ofdifferent strategies to be adopted to manage and avoid working capital crisis

situations in any organization. The working capital position depends on many

organizational parameters which are interrelated and interdependent, and also vary

over time. In such a situation, the use of a system dynamics approach has been

advocated to reflect the relevant dynamic cause-and-effect relationships for the

development of appropriate long-term and short-term strategies.


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Objectives of

the study


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OBJECTIVES OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every study

must have an objective for which all the efforts have been done. Without objective

no research can be conducted and no result can be obtained. On the basis of

objective all the research process is followed. Objectives are the main aspect of

every study. The objective of the study gives direction to go through the research

problem. It guides the researcher and keeps him on track.

I have two objectives regarding my research project. These are shown below :-

1. Primary objective

2. Secondary objective

1. Primary objective:-

1) To study the Investment options in HDFC.2) To analyze the Mutual Funds of HDFC by Comparative Analysis.

2. Secondary objective:-

1) To find out the shortcomings in HDFC.

2) To see whether HDFC is going well or not in different areas

3) To inform the management about the financial condition of HDFC.

4) To inform the investor, enabling them to take the investment decision.


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LIMITATION OF THE STUDY

Every study has some limitations. Inspire of the hurdles, the training period was a

good time for learning experience but there were certain limitations that every

researcher has to face during the research period. I too had to face certain suchlimitations:

Shortage of time: Period of six weeks is not sufficient to even study thebasic routine activities of the organization

Lack of expertise, being a fresher Difficulty in analyzing data, being a fresher. Lack of attention, support from the executives of the concerned

organization.


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Research Methodology


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RESEARCH METHODOLOGY

Research is defined as a scientific & systematic search for pertinent information

on a specific topic. Research is an art of scientific investigation. Research is a

systemized effort to gain new knowledge. It is a careful inquiry especially through

search for new facts in any branch of knowledge. The search for knowledge

through objective and systematic method of finding solution to a problem is a

research.

Problem Statement

The research problems, in general refers to some difficulty with a researcher

experience in the contest of either a particular a theoretical situation and want to

obtain a salutation for same. The present project has been undertaken to do the

Analysis of Mutual Funds at HDFC Bank..Research Design

A research is the arrangement of the conditions for the collections and analysis of

the data in a manner that aims to combine relevance to the research purpose with

economy in procedure. In fact, the research is design is the conceptual structure

within which research is conducted; it constitutes the blue print of the collection,

measurement and analysis of the data. As search the design includes an outline of

what the researcher will do from writing the hypothesis and its operational

implication to the final analysis of data. The design is such studies must be rigidand not flexible and most focus attention on the following;

What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can be required data be found? What period of time will the study include? What will be sample design? What techniques of data collection will be used? How will the data be analyzed?

Research Design can be categorized as: Exploratory Research Descriptive Research


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Diagnostic Research Experimental Research

The present study is descriptive in nature, as it studies only the existing financial

statement and no change is carried out. Research design is flexible enough to

provide opportunity for considering different aspects of problem under study. Ithelps in bringing into focus some inherent weakness in enterprise regarding which

in depth study can be conducted by management.

Research is an art of scientific investigation. It is basically a careful investigation

for search of new facts in any branch of knowledge.

Research Design: A research design is the arrangement of conditions forcollection and analysis of data in manner that aims to combine relevance to

the research purpose with economy in procedure. It is a framework, which

determines the course of action towards the collection and analysis ofrequired data. It may be described as the conceptual structure with in which

the research is conducted. I have adopted descriptive research as well as

exploratory design for analysis of data.

Time Schedule: The collection of data was last five years.As HDFC Bank. is a very big Organization and it is very difficult to study

the whole system in just few 6- 8weeks so as according to my limitation I

divided the whole topic into small different modules and decided to studyeach of them separately, so that the in depth knowledge is covered under this

report. For this I prepared the following time schedule for myself describe

on the next page:

Data Collection : Data Collection can be broadly classified into twocategories:

Primary Data : Primary Data are those collected a fresh and for first timeand thus happen to be original in character important primary data are:

i. Observation Methodii. Interview Method

Secondary Data : Secondary Data are those which have already beencollected and which have already been passed through the statistical

process, secondary data can be collected from :


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Books Annual Reports of the Bank Journals & Magazines Websites

I have used secondary data which is including last two years accounts to conduct

the study.

STEPS OF METHODOLOGY

1. COLLECTION OF DATA

This is the first step in the process. It forms foundation of the whole data.

Source : Individuals

Communication Method : Banks published financial statements.

Objectives : Maximizing Relevant Information2. ORGANISING THE DATA

The data collected during data collection process are organized and presented in a

comprehensible sequence to make them more meaningful.

3. PRESENTATION

After the data has been properly organized, it is ready for presentation. There are

different modes of presentation like tables, charts etc. The main objectives of

presentation are to put collected data into an easy readable form.

4. ANALYSIS OF DATA

After organizing and presenting the data, the researcher then has to proceed

towards conclusion by logical inferences. The raw data is then analyzed:

* By bringing raw data to measured data.

* Summarizing the data.

Presentation of Data

Collection of Data

Organizing the Data

Interpretation

Analysis of Data


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5. INTERPRETATION

Interpretation means to bring out meaning of data or to convert mere data into

information. From the analysis of data the various conclusions are find out on the

basis of logical inferences.


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Analysis &

Interpretation


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MEANING OF Mutual Fund

Mutual fund is a mechanism for pooling the resources by issuing units to the

investors and investing funds in securities in accordance with objectives as

disclosed in offer document.

Investments in securities are spread across a wide cross-section of industries and

sectors and thus the risk is reduced. Diversification reduces the risk because all

stocks may not move in the same direction in the same proportion at the same time.

Mutual fund issues units to the investors in accordance with quantum of money

invested by them. Investors of mutual funds are known as unit holders.

The profits or losses are shared by the investors in proportion to their investments.

The mutual funds normally come out with a number of schemes with different

investment objectives which are launched from time to time. A mutual fund isrequired to be registered with Securities and Exchange Board of India (SEBI)

which regulates securities markets before it can collect funds from the public.

About HDFC Mutual Fund

HDFC Mutual Fund is one of the largest mutual funds incorporated onDecember 10, 1999.

Presently, HDFC Mutual Fund is managing: 28 Open-Ended Schemes 8 Close-Ended Schemes

Description of products or funds

HDFC Growth fund (HGF)

Investment objective To generate long term capital appreciation from a

portfolio that is invested predominantly in equityand equity related instrument

Asset allocation pattern

of scheme

Types of instrument Normal allocation

1. Equity and equity related

instrument.

(%net assets)

80-100


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2. Debt securities, money

market instrument and cash

(including CBLO/reverse

repo.)

0-20

Plans and option Plans: none option: growth *dividend-payout

-reinvest

Minimum application

amt.

Purchase Additional purchase

Rs 5000/- Rs 1000/-

Systematic investment

plan(SIP)

Please refer page no.22 for details of (SIP)

Systematic withdrawal

plan(SWP)

Please refer page no.22 for details of (SWP)

Name of the fund

manager

Mr. Srinivas Rao Ravari

HDFC Top 200 funds (HT 200)

Investment

objective

To generate long term capital appreciation from a

portfolio of equity and equity linked instrument

primarily drawn from the companies in BSE 200

Index

Asset allocation

pattern of scheme

Types of

instrument

Normal allocation

1. Equity & equity

linked instrument.

(%of net assets)

Up to 100%(including use of


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2. # Debt and

money instruments.

#Investment in

securitized debt. If

undertaken wouldnot exceed 20%of

the net assets of the

scheme.

derivatives for hedging &

permitted by prevailing by

SEBI regulation)

Plans & options Plans- Nil optionGrowth & Dividend

- Payout- reinvest

Minimum

application amt.

Purchase Additional purchase

Rs 5000/- Rs 1000/-Systematic

investment

plan(SIP)

Please refer page no.22 for details of (SIP)

Systematic

withdrawal

plan(SWP)

Please refer page no.22 for details of (SWP)

Name of the fund

manager

Mr. Prashant Jain

Role of SEBI in mutual funds

Unit Trust of India was the first mutual fund set up in India in the year 1963. In

early 1990s, Government allowed public sector banks and institutions to set upmutual funds.

In the year 1992, Securities and exchange Board of India (SEBI) Act was passed.

The objectives of SEBI areto protect the interest of investors in securities and to

promote the development of and to regulate the securities market. As far as mutual

funds are concerned, SEBI formulates policies and regulates the mutual funds to


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protect the interest of the investors. SEBI notified regulations for the mutual funds

in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed

to enter the capital market. The regulations were fully revised in 1996 and have

been amended thereafter from time to time. SEBI has also issued guidelines to the

mutual funds from time to time to protect the interests of investors.All mutual funds whether promoted by public sector or private sector entities

including those promoted by foreign entities are governed by the same set of

Regulations. There is no distinction in regulatory requirements for these mutual

funds and all are subject to monitoring and inspections by SEBI. The risks

associated with the schemes launched by the mutual funds sponsored by these

entities are of similar type.

Major Mutual Fund Companies in India

Prudential Mutual Fund UTI Mutual Fund Reliance Mutual Fund HDFC Mutual Fund Franklin Mutual Fund Birla sun Mutual Fund SBI Mutual Fund DSP Merrill Lynch Mutual Fund Kotak Mutual Fund Tata Mutual Fund HSBC Mutual Fund PRINCIPAL Mutual Fund Standard chartered Mutual Fund LIC Mutual Fund Sundaram Mutual Fund Deutsche Mutual Fund Fidelity Mutual Fund ABN AMRO Mutual Fund ING Vysya Mutual Fund Canbank Mutual Fund


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JM Mutual Fund Chola Mutual Fund Benchmark Mutual Fund BOB Mutual Fund Taurus Mutual Fund Sahara Mutual Fund Escorts Mutual Fund Quantum Mutual Fund

Mutual Fund Structure

The structure consists of :

Sponsor

Sponsor is the person who acting alone or in combination with another body

corporate establishes a mutual fund. Sponsor must contribute at least 40% of the

net worth of the Investment Managed and meet the eligibility criteria prescribed

under the Securities and Exchange Board of India (Mutual Funds) Regulations,

1996.The Sponsor is not responsible or liable for any loss or shortfall resulting

from the operation of the Schemes beyond the initial contribution made by it

towards setting up of the Mutual Fund.


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Trust

The Mutual Fund is constituted as a trust in accordance with the provisions of the

Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the

Indian Registration Act, 1908

Trustee

Trustee is usually a company (corporate body) or a Board of Trustees (body of

individuals). The main responsibility of the Trustee is to safeguard the interest of

the unit holders and inter alia ensure that the AMC functions in the interest of

investors and in accordance with the Securities and Exchange Board of India

(Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Offer

Documents of the respective Schemes. Atleast 2/3rd directors of the Trustee are

independent directors who are not associated with the Sponsor in any manner.

Asset Management Company (AMC)

The AMC is appointed by the Trustee as the Investment Manager of the Mutual

Fund. The AMC is required to be approved by the Securities and Exchange Board

of India(SEBI) to act as an asset management company of the Mutual Fund. At

least 50% of the directors of the AMC are independent directors who are not

associated with the Sponsor in any manner. The AMC must have a net worth of at

least 10 corers at all times.

Registrar and Transfer Agent

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer

Agent to the Mutual Fund. The Registrar processes the application form,

redemption requests and dispatches account statements to the unit holders. The

Registrar and Transfer agent also handles communications with investors and

updates investor records

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer

Agent to the Mutual Fund. The Registrar processes the application form,

redemption requests and dispatches account statements to the unit holders. The

Registrar and Transfer agent also handles communications with investors and

updates investor records.


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RISK

The Risk-Return Trade-off

The most important relationship to understand is the risk-return trade-off. Higher

the risk greater the returns/loss and lower the risk lesser the returns/loss. Hence it is

upto you, the investor to decide how much risk you are willing to take. In order to

do this you must first be aware of the different types of risks involved with your

investment decision

Market Risk

Sometimes prices and yields of all securities rise and fall. Broad outside influences

affecting the market in general lead to this. This is true, may it be big corporations

or smaller mid-sized companies. This is known as Market Risk. A Systematic

Investment Plan (SIP) that works on the concept of Rupee Cost Averaging

(RCA)might help mitigate this risk.

Credit Risk

The debt servicing ability (may it be interest payments or repayment of principal)

of a company through its cash flows determines the Credit Risk faced by you. This

credit risk is measured by independent rating agencies like CRISIL who rate

companies and their paper. A AAA rating is considered the safest whereas a D

rating is considered poor credit quality. A well-diversified portfolio might help

mitigate this risk.
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Inflation Risk

Things you hear people talk about:

Rs. 100 today is worth more than Rs. 100 tomorrow.

Remember the time when a bus ride coated 50 paise?

Mehangai Ka Jamana Hai.The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot

of times people make conservative investment decisions to protect their capital but

end up with a sum of money that can buy less than what the principal could at the

time of the investment. This happens when inflation grows faster than the return on

your investment.

Interest Rate Risk

In a free market economy interest rates are difficult if not impossible to predict.

Changes in interest rates affect the prices of bonds as well as equities. If interest

rates rise the prices of bonds fall and vice versa. Equity might be negatively

affected as well in a rising interest rate environment. A well-diversified portfolio

might help mitigate this risk.

Political/Government Policy Risk

Changes in government policy and political decision can change the investment

environment. They can create a favorable environment for investment or vice

versa.

Liquidity Risk

Liquidity risk arises when it becomes difficult to sell the securities that one has

purchased. Liquidity Risk can be partly mitigated by diversification, staggering of

maturities as well as internal risk controls that lean towards purchase of liquid

securities.

Choice of Schemes

Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.


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Well Regulated

All Mutual Funds are registered with SEBI and they function within the provisions

of strict regulations designed to protect the interests of investors. The operations of

Mutual Funds are regularly monitored by SEBI.Drawbacks of Mutual Funds

No Guarantees: No investment is risk free. If the entire stock marketdeclines in value, the value of mutual fund shares will go down as well, no

matter how balanced the portfolio. Investors encounter fewer risks when

they invest in mutual funds than when they buy and sell stocks on their own.

However, anyone who invests through a mutual fund runs the risk of losing money.

Fees and commissions: All funds charge administrative fees to cover theirday-to-day expenses. Some funds also charge sales commissions or "loads"

to compensate brokers, financial consultants, or financial planners. Even if

you don't use a broker or other financial adviser, you will pay a sales

commission if you buy shares in a Load Fund.

Taxes: During a typical year, most actively managed mutual funds sellanywhere from 20 to 70 percent of the securities in their portfolios. If your

fund makes a profit on its sales, you will pay taxes on the income youreceive, even if you reinvest the money you made.

Management Risk: When you invest in a mutual fund, you depend on thefund's manager to make the right decisions regarding the fund's portfolio. If

the manager does not perform as well as you had hoped, you might not make

as much money on your investment as you expected. Of course, if you invest

in Index Funds, you forego management risk, because these funds do not

employ managers.

Rights of a Mutual Fund Unit holder

A unit holder in a Mutual Fund scheme governed by the SEBI (Mutual

Funds) Regulations is entitled to:


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1. Receive unit certificates or statements of accounts confirming the title within6 weeks from the date of closure of the subscription or within 6 weeks from

the date of request for a unit certificate is received by the Mutual Fund.

2. Receive information about the investment policies, investment objectives,financial position and general affairs of the scheme.

3. Receive dividend within 42 days of their declaration and receive theredemption or repurchase proceeds within 10 days from the date of

redemption or repurchase.

4. Vote in accordance with the Regulations to:-a. Approve or disapprove any change in the fundamental investment policies of

the scheme, which are likely to modify the scheme or affect the interest of

the unit holder. The dissenting unit holder has a right to redeem the

investment.b. Change the Asset Management Company.c. Wind up the schemes.

Profile of HDFC Mutual Fund

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

June 30, 2000.The registered office of the AMC is situated at Ramon House, 3rdFloor, H.T. Parekh Marg, 169, Back bay Reclamation, Church gate, Mumbai - 400

020.

In terms of the Investment Management Agreement, the Trustee has appointed the

AMC to manage the Mutual Fund.

As per the terms of the Investment Management Agreement, the AMC will

conduct the operations of the Mutual Fund and manage assets of the schemes,

including the schemes launched from time to time.


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The present shareholding pattern of the AMC is as follows

The Board of Directors of the HDFC Asset Management Company Limited

(AMC) Mr. Deepak S Parekh Mr. N. Keith Skeoch Mr Mark Connolly Mr. Hoshang S. Billimoria Mr. Humayun Dhanrajgir Mr. P. M. Thampi Dr. Deepak Phatak Mr Rajeshwar Raj Bajaaj Ms. Renu S. Karnad Mr. Milind Barve

The AMC is managing 3 close ended schemes

HDFC Fixed Investment Plan HDFC Long Term Equity Fund and HDFC Fixed Maturity Plans

Particulars Percentage of Paid up Capital

HDFC Ltd. 50.10

Standard Life InsuranceLtd.

49.90
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22 open-ended schemes of the Mutual Fund

HDFC Growth Fund (HGF) HDFC Balanced Fund (HBF) HDFC Income Fund (HIF) HDFC Liquid Fund (HLF) HDFC Long Term Advantage Fund (formerly HDFC Tax Plan 2000)(HTP) HDFC Children's Gift Fund (HDFC CGF) HDFC Gilt Fund (HGILT) HDFC Short Term Plan (HSTP) HDFC Index Fund HDFC Floating Rate Income Fund (HFRIF) HDFC Equity Fund (HEF) HDFC Top 200 Fund (HT200) HDFC Capital Builder Fund (HCBF) HDFC TaxSaver (HTS) HDFC Prudence Fund (HPF) HDFC High Interest Fund (HHIF) HDFC Cash Management Fund (HCMF) HDFC MF Monthly Income Plan (HMIP) HDFC Core & Satellite Fund (HCSF) HDFC Multiple Yield Fund (HMYF) HDFC Premier Multi-Cap Fund. (HPM)


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Techniques Used for Analysis

1) Return2)

Risk

3) Sharpe index4) Treynors IndexReturn

Return on a typical investment consists of two components. The basic is the

periodic cash receipts (or income) on the investment, either in the form of

interest or dividends. The second component is the change in the price of the

assets-commonly called the capital gain or loss. This element of return is the

difference between the purchase price and the price at which the assets can be

or is sold; therefore, it can be again or a loss.

The return has been calculated as under

NAVtNAVt-1

Portfolio return: Rit = ---------------------------------

NAV t-1

Where Rit is the difference between Net Asset Values for two consecutive daysdivided by the NAV of the preceding day.

M.indtM.indt-1

Market return: Rmt = --------------------------------

M.indt-1


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Where Rmt is the difference between market indices oftwo consecutive daysdividend by the market index for the preceding day.

Risk

Risk is neither good nor bad. Risk in holding securities is generally associatedwith the possibility that realized returns will be less than expected returns. Thedifference between the required rate of returns on mutual fund investment and therisk free return is the risk premium. Risk can be measured in terms of Beta &standard deviations.

Standard deviationIt is used to measure the variation in individual returns from the average expectedreturns over a certain period. Standard deviation is used in the concept of risk of a

portfolio of investments. Higher standard deviation means a greater fluctuation inexpected return.

Standard deviation (SD) = \/ var

Where Var = variance

Var = i-E(r))2

BetaBeta measures the systematic risk and shows how prices of securities respond tothe market forces. It is calculated by relating the return on a security with return forthe market. By convention, market will have beta 1.0.Mutual fund is said to bevolatile, more volatile or less volatile. If beta is grater than 1 the stock is said to beriskier than market. If beta is less than 1,the indication is that stock is less risky incomparison to market. If beta is zero then the risk is the same as that of the market.

Negative beta is rare.

= nxy-(x)( y)nx2-(x) 2


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Where,

n= number of days

X =rolling returns of the NSE index

Y= rolling returns of the schemes

Sharpe index

Sharpe index measures risk premium of a portfolio, relative to the total amount of

risk in the portfolio. Sharpe index summarizes the risk and return of a portfolio in a

single measure that categorizes the performance of funds on the risk- adjusted

basis. The larger the Sharpes index the portfolio over performs the market and

vise versa.

Where,

St = Sharpes index

Rp= portfolio return

Rf= Risk free rate of return (7.59%)

SD= Standard Deviation of the port folio

St= RP-Rf

Treynors Index

Treynors model is on the concept of the characteristics straight line. The

characteristics line has drawn a relationship between the market return and a

specific portfolio without taking into consideration any direct adjustment for risk.

It is also known as reward to volatility ratio and is defined as:

The formula for Treynors Index is:


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Portfolio avg return (Rp)risk-free rate of interest

(Rf)Treynor index (Tn) = -------------------------------------------------------------------

-- Beta coefficient of portfolio (Bp)

RpRf

Tn = -------------------------

Bp

It measures portfolio risk in terms of beta, which is weighted average of individual

security beta. The ratio is investors, for who the fund represents only a fraction of

their total assets. The higher the ratio better is the performance.

Sharpe

Sharpes index measures the risk premium of the portfolio relative to the total amt

of risk in the portfolio. This risk premium is the difference between the portfolios

average rate of return and the risk less rate of return. The index assigns the highest

values to assets that have best risk-adjusted average rate of returns.

Name of Scheme DOI 5 yrs Avg.

Return Rp)

Rf SD St

Relaince Growthfund(G)

199.52 60.54 8.00 23.55 2.23

Relaince VisionFund(G)

137.65 57.89 8.00 15.43 3.23

Pru ICICI DynamicPlan(G)

47.3746 55.65 8.00 30.51 1.56

HDFC Long TermAdvantage

74.137 52.81 8.00 15.64 0.59

HDFC Tax Saverfund(G)

115.193 51.05 8.00 30.59 1.41

Pru ICICI Tax Plan(G) 73.12 50.79 8.00 32.69 1.31

HDFC Equity Fund(G) 113.822 46.99 8.00 11.70 3.33

HDFC Top 200 Fund 85.834 45.22 8.00 11.70 2.68

Pru ICICI Power 61.74 42.73 8.00 14.81 2.34


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Where st=Sharpes index

Rp=portfolio return

Rf=Risk free rate of return (8.00%)

SD= standard deviation of the port folio

St= RP-Rf

SD

Treynors Index

In Treynors higher the ratio higher the performance.

Tn =Treynors index

Rp=portfolio return

Rf=Risk free rate of return (7.59%)

Formula

Tn= RP-Rf

Beta

Name of Scheme DOI Rp Rf Beta TnReliance Growth Fund (G) 199.52 60.54 8 0.91 57.73

Reliance Vision Fund (G) 137.65 57.89 8 0.98 50.91

Pru ICICI Dynamic Plan (G) 47.3746 55.65 8 0.99 48.13

HDFC Long TermAdvantage Fund (G)

74.137 52.81 8 0.75 59.75

HDFC Tax Saver (G) 115.193 51.05 8 0.93 46.29

Pru ICICI Tax Plan (G) 73.12 50.79 8 1 42.79

HDFC Equity Fund (G) 113.822 46.99 8 0.94 43.32

HDFC Top 200 fund 85.834 45.22 8 0.96 38.77

Pru ICICI power 61.74 42.73 8 0.97 35.8


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Performance Evaluation Tables

Ranking on the basis of Sharpes

Name of Scheme (DOI) Rp Beta SD Sharpe

s

Treynor'

s

Reliance Growth Fund(G)

199.52 60.54 0.91 23.55 2.23 57.73

Reliance Vision Fund (G) 137.65 57.89 0.98 15.43 3.23 50.91

Pru ICICI Dynamic Plan(G)

47.3746

55.65 0.99 30.51 1.56 48.13

HDFC Long TermAdvantage Fund (G)

74.137 52.81 0.75 15.64 0.59 59.75

HDFC Tax Saver (G) 115.193

51.05 0.93 30.59 1.41 46.29

Pru ICICI Tax Plan (G) 73.12 50.79 1 32.69 1.31 42.79HDFC Equity Fund (G) 113.82

246.99 0.94 11.7 3.33 43.32

HDFC Top 200 fund 85.834 45.22 0.96 13.88 2.68 38.77

Pru ICICI power 61.71 42.73 0.97 14.81 2.34 35.8

Name of the scheme DOI Rp Sharpes RanksHDFC equity fund 113.822 46.99 3.33 1

Reliance vision fund 137.65 57.89 3.23 2

HDFC top 200 fund 85.834 45.22 2.68 3

Pru ICICI power 61.74 42.73 2.34 4

Reliance growth fund 199.52 60.54 2.23 5

Pru ICICI Dynamicfund

47.37 55.65 1.56 6

HDFC tax saver fund 115.193 51.05 1.41 7

Pru ICICI tax plan 73.12 50.79 1.31 8HDFC long ternadvantage fund

74.134 52.81 0.59 9


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Interpretation

In this chart blue colour indicate to the Rank of Mutual Funds and Red colour

shows the Sharpes Ratios of industries. Here HDFC Equity Funds has the First

Rank and after that Reliance vision fund, HDFC top 200 fund, Pru ICICI power

and others.

Ranking on the basis of Treynors

1 23 4

5 67 8

9

1 2 3 4 5 6 7 8 9

0

10

20

30

40

50

60

70

RANK

Treynors RATIO

Name of Scheme DOI Rp Treynors Ranks

Hdfc long ternadvantage fund

74.134 51.81 60.29 1

Reliance growth fund 199.52 60.54 58.18 2

Reliance vision fund 137.65 57.89 57.33 3

Pru ICICI dyanamicfund

47.3746 55.65 51.33 4

Hdfc tax saver fund 115.193 51.05 48.55 5

Hdfc equity fund 113.822 46.99 46.73 6

Pru icici tax plan 73.12 50.79 43.2 7

Hdfc top 200 fund 85.834 45.22 41.91 8

Pru ICICI power 61.74 42.73 38.61 9


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INTERPRETATION

In this chart blue colour indicate to the Rank of Mutual Funds and Red colour

shows the Treynors Ratios of industries. Here HDFC Long Term Advantage

Funds has the First Rank and after that Reliance Growth fund, Reliance vision

fund, Pru ICICI power and others.

1 23 4

5 67 8

9

1 2 3 4 5 6 7 8 9

0

10

20

30

40

50

60

70

RANK

Treynors RATIO


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Findings


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FINDINGS

To work on this project I have find out some of the points where Bank managers

should think. And by which they can increase customer base as well as they can

give better service to the customers. They are as follows.

HDFC mutual are providing 28 open ended schemes and 8 close endedschemes.

Services of HDFC are much better then the mutual fund like systematicinvestment plan(SIP).

HDFC mutual fund are providing both type of plan like regular andinstitutional plan in most of the product or fund.

In HDFC mutual fund systematic withdrawal plan(SWP)are very easy andalso easily available.

In these funds or schemes HDFC are not providing both type of plan to thepublic they are providing wholesale or retail plan only in few schemes.

HDFC are providing systematic investment plan(SIP)or systematicwithdrawal plan(SWP) only quarterly.

Minimum application amount Rs5000 for HDFC Saving A/C for semi urbanand Rs10,000 for Urban Peoples.


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Suggestions


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SUGGESTIONS

1. In regards to its Mutual funds of the Bank should be profitable for the investors.

2. The Bank should also put emphasis on its Competitors mutual funds industries.

3. The Bank should try to generate internal funds while calculating proprietary

ratio.

4. The Bank should review its investments in current assets and long term assets.

5. The Bank should have optimum capital mix so that the cost of capital should be

decreased.


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Conclusion


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CONCLUSION

Mutual Fund is the most suitable investment for the common man as it offers an

opportunity to invest in a diversified, professionally managed portfolio at a

relatively low cost. The small savings of all the investors are put together toincrease the buying power and hire a professional manager to invest and monitor

the money. Anybody with an investible surplus of as little as a few thousand rupees

can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment

objective and strategy.

HDFC Mutual Fund is one of the largest mutual funds incorporated on December

10, 1999. Presently, HDFC Mutual Fund is managing 28 Open-Ended Schemes

and 8 Close-Ended Schemes.

HDFC Asset Management Company Ltd (AMC) was incorporated under theCompanies 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

June 30, 2000.The registered office of the AMC is situated at Ramon House, 3rd

Floor, H.T. Parekh Marg, 169, Back bay Reclamation, Church gate, Mumbai - 400

020.

In terms of the Investment Management Agreement, the Trustee has appointed the

AMC to manage the Mutual Fund.

As per the terms of the Investment Management Agreement, the AMC will

conduct the operations of the Mutual Fund and manage assets of the schemes,

including the schemes launched from time to time.

The Bank should also put emphasis on its Competitors mutual funds industries.

The Bank should review its investments in current assets and long term assets.


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Bibliography


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BIBLIOGRAPHY

Books referred

security analysis & portfolio managementBy Punithavathy pandian.

Pandey I,.M., Financial Management, New Delhi, Vikas Publishing House Pvt.

Ltd.,

9th Ed. Khan M.Y., Jain P.K., Financial Management Text Problems and Cases

New Delhi, Tata Mc

GrawHill Publishing Co. Ltd. 4th ED.

Gupta Shashi,K, Sharma .R.K Management Accounting Principles and Practises

New Delhi, Kalyani Publishers 9th ED.

Kothari C.R., Research Methodology Methods and Techniques Wishwa

Prakashan, New Delhi, 2001.Bhalla V.K., Working Capital Management: Text and Cases, Anmol Publications

Pvt. Ltd.,

Gupta S.K., Accounting for managerial decisions, 7th edition, Kalyani

Publishers, New Delhi, 2005 P.No. (10.1-10.5).

Pandey I..M., Financial Management, Vikas Publishing House, New Delhi, 2004,

p-246-250.

Mittal R.K., Management accounting and financial management, New Delhi, V.K.

Publications, 2007, p51-70.Kothari C.R., Quantitative Techniques, Vikas publishing house Pvt. Ltd. New

Delhi, 2006, p- 168- 174.

Khan M.Y, Jain P.K, Management Accounting, 5th edition, Tata McGraw Hill

Publishing Ltd., New Delhi, 2004, P.No.60-95

Chandra Prasanna , Financial Management- Theory and Practice, Tata McGraw

Hill Publishing Co. Ltd. , Delhi, 2005, p-297.

Kothari C.R., Quantitative Techniques1 ,Pg10-20, I have taken knowledge

about research design ,sample design & sampling. In this I got what type of sample

can be choosen and more about sample design

Khan M.Y, Jain P.K Management Accounting2,Pg 67 , Ratios and there

formulations.


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Bruch Lev, Financial Statement Analysis-A new approach3,p-11,2006, How

ratio can be analysed and about the interpretation of these ratios.

Gupta S.P., Business Statistics4, Pg 378-418 From here I found the

information regarding correlation , trend and statistical tools.

Goel D.K. Management Accounting and Financial Management5,Pg 78 In thisI found the different types of ratios and there formulas and about thumb rule and

all basic concept.

Pandey , I.M Financial Management6 Pg-143-145 How to prepare

comparative balance sheet and how can we evaluate.

Maheshwari ,S.N , Advanced Accounting7 pg b40-b48, It explains ratio analysis

as a tool to analyze the financial statements of organization. Different ratios depict

the position of firm in market.

Mittal R.K , Management Accounting& Financial Management8

pg 28-30 fromthis I have how to prepare comparative balance sheet and how to interpret it

Jain T.R. , Statistics for MBA9 Pg part C 135-138, Information about the

calculation of chi square test.

Berry G.C., Marketing Research10 pg15 Some theoretical knowledge about the

type of data.

S.C Gupta, Fundamentals of Statistics11 pg112, From here I found the

definitions that are the base for the statistical tools.

Hooda R.P. Statistics for Business and Economics12 pg209-212 Calculation of

trend analysis and its interpretation.

Horne James.c.Van, Fundamental of Financial Management13 pg125-130 From

this I got how to analyse the financial condition

Chandra Prasanna , Fundamental of Financial Management14, pg103-108 this

book help me to analyse the balance sheet , how can we say that the firm is going

well or not.

Cooper R.Donald , Business Research Methods17

, pg176-180 all about

sampling design, its meaning


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Web sites

WWW.DSPBLACK.COM WWW.HDFC.COM WIKIPEDIA www.hdfcmutualfund.com www.amfi.com www.myirish.com www.indiainfoline.com www.google.com www.yahoo.com www.rediff.com
http://www.dspblack.com/http://www.hdfc.com/http://www.hdfc.com/http://www.hdfcmutualfund.com/http://www.amfi.com/http://www.myirish.com/http://www.indiainfoline.com/http://www.google.com/http://www.rediff.com/http://www.rediff.com/http://www.google.com/http://www.indiainfoline.com/http://www.myirish.com/http://www.amfi.com/http://www.hdfcmutualfund.com/http://www.hdfc.com/http://www.dspblack.com/


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Annex: Glossary

These definitions explain the meaning of words and terms used in the Code. They

are not precise legal or technical definitions.

ATM

An automated teller machine [ATM] is a machine in which a customer can use

their card along with PIN to get cash, information and other services.

Banking Ombudsman

An independent dispute resolution authority set up by the Reserve Bank to deal

with disputes that individuals and small business have with their banks.Card

A general term for any plastic card, which a customer may use to pay for goods

and services or to withdraw cash. In this Code, it includes debit, credit, or ATM

cards.

Credit Card

A Credit Card is a plastic card with a credit facility, which allows you to pay for

goods and services or to withdraw cash

Cheque Collection Policy

Cheque Collection Policy refers to the policy followed by a bank in respect of the

various local cheques and outstation instruments deposited with the bank for credit

to an account . The policy interalia deals with

cheque purchase requeststime frame for credit of cheques

payment of interest in case of delay in collection of cheques instant credit of local and outstation cheques cheques instruments lost in transit and charges for such collection


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Customer

A person who has an account [including a joint account with another person or an

account held as an executor or trustee or as a Karta of an HUF, but not including

the accounts of sole traders/ proprietorships , partnerships, companies, clubs and

societies] or who avails of other products/ services from a bank.

Current Account

A form of demand deposit wherefrom withdrawals are allowed any number of

times depending upon the balance in the account or up to a particular agreed

amount.

Deceased Account

A Deceased account is a deposit account in which case either the single account

holder has deceased or in case of joint accounts one or more of joint account

holders has/have deceased

Demat Account

A Demat account refers to dematerialized account and is an account in which the

stocks of investors are held in electronic form.

Deposit Accounts:

"Savings deposits" means a form of demand deposit which is subject torestrictions as to the number of withdrawals as also the amounts of

withdrawals permitted by the Bank during any specified period;

"Term deposit" means a deposit received by the Bank for a fixed periodwithdraw able only after the expiry of the fixed period and includes deposits

such as Recurring / Double Benefit Deposits / Short Deposits / Fixed

Deposits /Monthly Income Certificate /Quarterly Income Certificate etc.

"Notice Deposit" means term deposit for specific period but withdraw ableon giving at least one complete banking day's notice;


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Dormant / Inoperative Account

A dormant/inoperative account is a savings bank or current account which is not

operated upon for a period specified by the bank.

Equity

Equity means a part of capital of a corporate entity which is represented by the

shares of the company whether in physical or in dematerialized form

Electronic Clearing System

The Electronic Clearing System (ECS) is an online transmission system which

permits the electronic transmission of payment information by the banks / branches

to the Automated Clearing House (ACH) via a communication network.

Guarantee

A promise given by a person

Government Bond

Government bond means a security, created and issued, by the Government for

the purpose of raising a public loan.

Mail

A letter in a physical or electronic form

Mutual fund

Mutual fund is a mechanism for pooling the resources by issuing units to the

investors and investing funds in securities in accordance with objectives as

disclosed in offer document.


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