RANJEET RAJPUT

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CONTENTS

CHAPTER TOPIC PAGE NO

1 OBJECTIVE OF THE STUDY

2 INTRODUCTION

1. MUTUAL FUND SETUP2. NAV3. SCOPE4. BENEFITS OF MUTUAL FUND5. CAPITAL GAIN6. INVESTMENT CRITERIA

3 ABOUT HDFC MUTUAL FUND

1. WHY HDFC MUTUAL FUND2. SPONSORS3. TRUSTEE4. AMC DIRECTORS5. AWARDS

4 PRODUCT &SERVICE

1. TYPES OF MUTUAL FUND2. INVESTMENT PLAN3. PRODUCT OF MUTUAL FUND

6 FINDING, RECOMMENDATION, CONCLUSION

7 BIBLIOGRAPHY

8 QUESTIONARE


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OBJECTIVE OF THE STUDY

Indian financial system has been expiring the vast effect of globalization i.e. drastic

interest rate cut, political disturbances, security scam etc have scattered the common investors

perception in selecting various investment portfolio. Most of the security holders have lost their

confidence in newly come-up corporate sectors for investment. Looking to the situation, it is

quite encouraging to analyze how the HDFC Mutual Fund able to trap the deposits by

introducing various schemes and how it protects the interest of the investors.

The main study is based on the performance and analysis of various schemes with

reference to HDFC Mutual Fund that is a leading mutual fund industry in India.

The total performance analysis of financial instruments with reference to the HDFC

Mutual Fund has got objectives. This are as follows:-

To know the performance of the different schemes. The comparative study of HDFC Mutual Fund with other mutual funds. To know the investment pattern of the investors in different schemes. The benefits made from the investment on the different schemes. To know the ranking of the HDFC Mutual Fund Schemes. To know the diversify portfolio of HDFC Mutual Fund. To know the service which HDFC Mutual Fund is providing to its investors

with compare to other mutual funds.


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INTRODUCTION

1. MUTUAL FUND SETUP2. NAV3. SCOPE4. BENEFITS OF MUTUAL FUND5. CAPITAL GAIN6. INVESTMENT CRITERIA

INTRODUCTION

The financial market plays a crucial role in the in the economic development of a

country by facilitating the allocation of scarce resources. Financial marketsessentially involve the allocation of resources. This can be thought of as the brain

of the entire economic system, the locus of central decision-making; if they fail, not

only will the sectors profit be lower than would otherwise have been, but the

performance of the entire economic system may be impaired.

The efficiency of financial market how ever, depends on the existence of active and

efficient financial intermediaries in the system. Deposit taking institutional investor

is the important financial intermediaries involved in the task of allocating assets.

Structural changes in the financial market have induced a reverse trend in financial

intermediation, i.e. financial disintermediation, in which the central role of banking

is being taken over by investment institutions and institutional investors. The shift

from a credit-based system to a financial has initiated the process of

disintermediation, and capital market based factors like insurance, pension funds

and mutual funds are increasingly playing the central role.

The reforms have successfully dismantled the entry barriers, with the result that

today there are domestic and foreign financial institutions, like mutual funds,

broking firms and insurance companies, operating in the Indian market. The

introduction of capital adequacy norms, prudential regulation and world class

regulatory mechanisms to protect the interest of investor, besides the strict

requirement of disclosure, have given a boost to the confidence of domestic and

foreign investors. The Indian economy has slowly integrated itself with the global

economy and financial market.


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What is a Mutual Fund?

Mutual fund is a mechanism for pooling the resources by issuing units to the investors andinvesting 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 thusthe risk is reduced. Diversification reduces the risk because all stocks may not move in the samedirection in the same proportion at the same time. Mutual fund issues units to the investors inaccordance with quantum of money invested by them. Investors of mutual funds are known asunit 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 investmentobjectives which are launched from time to time.

A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI)which regulates securities markets before it can collect funds from the public.

2.1 - How is a mutual fund set up?

A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset ManagementCompany (AMC) and custodian. The trust is established by a sponsor or more than one sponsorwho is like promoter of a company. The trustees of the mutual fund hold its property for thebenefit of the unit holders. Asset Management Company (AMC) approved by SEBI manages thefunds by making investments in various types of securities.


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Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in itscustody. The trustees are vested with the general power of superintendence and direction overAMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.

SEBI Regulations require 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. Also, 50% ofthe directors of AMC must be independent. All mutual funds are required to be registered withSEBI before they launch any scheme. However, Unit Trust of India (UTI) is not registered withSEBI (as on January 15, 2002).

2.2 - What is Net Asset Value (NAV) of a scheme?

The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV).

Mutual funds invest the money collected from the investors in securities markets. In simplewords, Net Asset Value is the market value of the securities held by the scheme. Since market

value of securities changes every day, NAV of a scheme also varies on day to day basis. TheNAV per unit is the market value of securities of a scheme divided by the total number of unitsof the scheme on any particular date. For example, if the market value of securities of a mutualfund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to theinvestors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by themutual funds on a regular basis - daily or weekly - depending on the type of scheme

2.3 - Scope for Development of Mutual Fund

A Mutual Fund 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. Indiahas a burgeoning population of middle class now estimated around 300 million. A typical Indianmiddle class family can have liquid savings ranging from Rs.2 to Rs.10 Lacs today. Investmentsin Banks are liquid and safe, but with the falling rate of interest offered by Banks on Deposits, itis no longer attractive. At best a part can be saved in bank deposits, but what is the other sourcesof investment for the common man? Mutual Fund is the ready answer. Viewed in this senseglobally India is one of the best markets for Mutual Fund Business, so also for Insurancebusiness. This is the reason that foreign companies compete with one another in setting upinsurance and mutual fund business units in India. The sheer magnitude of the population ofeducated white collar employees provides unlimited scope for development of Mutual FundBusiness in India.


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2.4. - Benefits of Mutual Funds

There are numerous benefits of investing in mutual funds and one of the key reasons for its

phenomenal success in the developed markets like US and UK is the range of benefits they offer,which are unmatched by most other investment avenues. We have explained the key benefits inthis section. The benefits have been broadly split into universal benefits, applicable to allschemes, and benefits applicable specifically to open-ended schemes.

1. Professional ManagementThe investor avails of the services of experienced and skilled professionals who are backedby a dedicated investment research team which analyses the performance and prospects ofcompanies and selects suitable investments to achieve the objectives of the scheme.

2. DiversificationMutual Funds invest in a number of companies across a broad cross-section of industriesand sectors. This diversification reduces the risk because seldom do all stocks decline at thesame time and in the same proportion. You achieve this diversification through a MutualFund with far less money than you can do on your own.

3. Convenient AdministrationInvesting n in a Mutual Fund reduces paperwork and helps you avoid many problems suchas bad deliveries, delayed payments and unnecessary follow up with brokers and

companies. Mutual Funds save your time and make investing easy and convenient.

4. Return PotentialOver a medium to long-term, Mutual Funds have the potential to provide a higher return asthey invest in a diversified basket of selected securities.


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5. Low CostsMutual Funds are a relatively less expensive way to invest compared to directly investingin the capital markets because the benefits of scale in brokerage, custodial and other feestranslate into lower costs for investors.

6. LiquidityIn open-ended schemes, you can get your money back promptly at net asset value relatedprices from the Mutual Fund itself. With close-ended schemes, you can sell your units on astock exchange at the prevailing market price or avail of the facility of direct repurchase atNAV related prices which some close-ended and interval schemes offer you periodically.

7. TransparencyYou 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 ofassets and the fund manager's investment strategy and outlook.

8. FlexibilityThrough features such as regular investment plans, regular withdrawal plans and dividendreinvestment plans, you can systematically invest or withdraw funds according to yourneeds and convenience.

9. Choice of SchemesMutual Funds offer a family of schemes to suit your varying needs over a lifetime.

10.Well RegulatedAll Mutual Funds are registered with SEBI and they function within the provisions of strictregulations designed to protect the interests of investors. The operations of Mutual Fundsare regularly monitored by SEBI.

11.Understanding and Managing RiskAll investments whether in shares, debentures or deposits involve risk: share value may go

down depending upon the performance of the company, the industry, state of capital marketand the economy; generally, however longer the term, lesser the risk; companies maydefault in payment of interest/principal on their deposits/bonds debentures; the rate ofinterest on investment may fall short of the rate of inflation reducing the purchasing power.

While risk cannot be eliminated, skillful management can minimize risk. Mutual fund helpsto reduce risk through diversification and professional management. The experience andexpertise of Mutual Fund managers in selecting fundamentally sound securities and timing


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their purchases and sales help them to build a diversified portfolio that minimize risk andmaximizes returns.

12.Tax BenefitsThe incomes under Mutual Funds are much more Tax efficient than any fixed incomesecurity due to the following benefits:-

Section 80L of the income Tax Act ,1961 enables tax free income up to rs 15000 anddividends from MF s are eligible for this benefit.

When you invest for over a year, the tax payable on encashment is Long term Capitalsgains tax at 20%. Once also get an indexation benefit which has been approximately8% per year. This reduces the taxable income and thus decreases the tax liability.

There is also an opportunity to set off capital losses against gains from incomeschemes.

Full exemption from capital gains tax as it comes under Section 54EA/EB of theincome tax Act.

One has to pay tax only when he encase units, but have to pay tax on the interestearned on other debt instruments every year on an accrual basis, even though hereceives the interest later. This generates higher post tax returns compared to other debtinstruments.

Tax is just like a monster that frightens a number of individuals through out the nation. There arejust to way to fight with this monitor:

. Conceal/Depress Income

. Make tax efficient investments.

Perhaps the second option is far better than the first as it gives the peace of mind together with afeeling that one is a responsible citizen of the nation. With increasing amount of awareness thatis taking birth in the minds of investors, mutual fund has become cynosure of the eye of theseveral investors.

The taxes available are tow kinds:

. To the mutual fund- as explained below in No 1

. To the Investor- as explained below in No 2

1. Mutual Fund Taxation

. Mutual fund is fully exempted from the tax under Section10 (23D) of the Income Tax Act1961.

. It receives all income without deduction at source.


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. Mutual 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.

2. Benefits to the Investors

There are number of benefits that the investor of a mutual fund avails. These are discussed asfollows:

.Resident Unit Holders- In case of an individual or Hindu Undivided Families (HUFs), incomeby way of dividends, if any from unit of schemes of the fund together with other income onspecified investment/deposit are except from tax within the overall limit of Rs.15000/- specifiedunder Section80L of the I.T. Act,1961. Since dividends from shares no longer invite dividend taxand hence the whole limit is available for mutual fund dividends.

. Tax deduction at source- as per Section196A of the Income Tax Act, 1961, no deduction of taxat source is made from any income payable to the unit holders. This implies that there is no tax

deduction at source for redemption up to any limit.

As per Section194k of the I.T. Act 1961, deduction of tax at source is not made if the dividendincome from a mutual fund does not exceed Rs10000 per annum.

2.6 - Investment criteria

Lower cost

It is a lower cost of investment as compare to other mode of investment option in the market.Here the investor can invest a minimum of Rs500 in the scheme of ELSS (Equity Link SavingScheme).

Less paper work

Here less paper work is require than other. The investor give his detail information like his/hername, age, address, phone no., pan card no, nominee name and address(in case of minor) andthree full signature of the candidate.

No cash Transactions

Investor need not require paying cash, instead of cash investor has to pay cheque or demanddraft. Which help to prevent misappropriation and also save the tax. Here the investor just writesthe product name of mutual fund and sign on it. It also saves the time.


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ABOUT HDFCMUTUAL FUND

1. WHY HDFC MUTUAL FUND2.

SPONSORS3. TRUSTEE

4. AWARDS3.1 - Why HDFC Mutual Fund?

HDFC Mutual Fund is one of the largest mutual funds and well-established fund house in the

country with consistent and above average fund performance across categories since its

incorporation on December 10, 1999. While our past experience does make us a veteran, but

when it comes to investments, we have never believed that the experience is enough.

Our Investment Philosophy

The single most important factor that drives HDFC Mutual Fund is its belief to give the investor

the chance to profitably invest in the financial market, without constantly worrying about the

market swings. To realize this belief, HDFC Mutual Fund has set up the infrastructure required

to conduct all the fundamental research and back it up with effective analysis. Our strong

emphasis on managing and controlling portfolio risk avoids chasing the latest fads and trends.

We Offer

We believe, that, by giving the investor long-term 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. We 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. Besides, we also offer Portfolio Management Services.

Our Achievements

HDFC Asset Management Company (AMC) is the first AMC in India to have been assigned the

CRISIL Fund House Level 1 rating. This is its highest Fund Governance and Process Quality

Rating which reflects the highest governance levels and fund management practices at HDFC


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AMC It are the only fund house to have been assigned this rating for two years in succession.

Over the past, we have won a number of awards and accolades for our performance

3.2 - SPONSORS

Housing Development Finance Corporation Limited (HDFC). HDFC was incorporated in

1977 as the first specialized Mortgage Company in India. HDFC 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. Of these activities, housing finance remains the dominant activity.

HDFC has a client base of around 12 lac borrowers, around 8 lac depositors, over 1.08 lac

shareholders and 50,000 deposit agents, as at March 31, 2008. HDFC has raised funds from

international agencies such as the World Bank, IFC (Washington), USAID, DEG, ADB and

KfW, international syndicated loans, domestic term loans from banks and insurance companies,

bonds and deposits. HDFC has received the highest rating for its bonds and deposits program for

the thirteenth year in succession. HDFC Standard Life Insurance Company Limited, promoted by

HDFC was the first life insurance company in the private sector to be granted a Certificate of

Registration (on October 23, 2000) by the Insurance Regulatory and Development Authority to

transact life insurance business in India.

Standard Life Investments Limited. The Standard Life Assurance Company was established in

1825 and has considerable experience in global financial markets. The company was present in

the Indian life insurance market from 1847 to 1938 when agencies were set up in Kolkata and

Mumbai. The company re-entered the Indian market in 1995, when an agreement was signed

with HDFC to launch an insurance joint venture. On April 2006, the Board of The Standard Life

Assurance Company recommended that it should demutualise and Standard Life plc float on the

London Stock Exchange. At a Special General Meeting held in May voting members

overwhelmingly voted in favor of this. The Court of Session in Scotland approved this in June

and Standard Life plc floated on the London Stock Exchange on 10th July 2006. Standard Life

Investments is a leading asset management company, with approximately US$ 267 billion as at

March 31, 2008, of assets under management. The company operates in the UK, Canada, Hong

Kong, China, Korea, Ireland, Paris, Sydney and the USA to ensure it is able to form a truly


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global investment view. In order to meet the different needs and risk profiles of its clients,

Standard Life Investments Limited manages a diverse portfolio covering all of the major markets

world-wide, which includes a range of private and public equities, government and company

bonds, property investments and various derivative instruments

3.3 - TRUSTEE

HDFC Trustee Company Limited, a company incorporated under the Companies Act, 1956 is the

Trustee to HDFC Mutual Fund vide the Trust deed dated June 8, 2000, as amended from time to

time. HDFC Trustee Company Ltd is wholly owned subsidiary of HDFC

The Board of Directors of HDFC Trustee company Limited consists of the following

eminent persons.

Mr. Anil Kumar Hirjee

Mr. James Aird

Mr. Shishir K. Diwanji

Mr. Ranjan Sanghi

Mr. V. Srinivasa Rangan

3.4 - Awards & Accolades

CNBC - TV 18 - CRISIL Mutual Fund of the Year Awards 2008: (3 awards)

1. HDFC Prudence Fund was the only scheme that won the CNBC - TV 18 - CRISILMutual Fund of the Year Award 2008 in the Most Consistent Balanced Fund under

CRISIL ~ CPR for the calendar year 2007 (from amongst 3 schemes).

2. HDFC Cash Management Fund - Savings Plan was the only scheme that won theCNBC - TV 18 - CRISIL Mutual Fund of the Year Award 2008 in the Most Consistent

Liquid Fund under CRISIL ~ CPR for the calendar year 2007 (from amongst 5schemes).

3. HDFC Cash Management Fund - Savings Plan was the only scheme that won theCNBC - TV 18 - CRISIL Mutual Fund of the Year Award 2008 in the Liquid Scheme

Retail Category for the calendar year 2007 (from amongst 19 schemes).


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ICRA Mutual Fund Awards 2008: (3 awards)

1. HDFC MF Monthly Income Plan-Long Term Plan- Ranked a Seven Star Fund andhas been awarded the Gold Award for "Best Performance" in the category of"Open

Ended Marginal Equity" for the three year period ending December 31, 2007 (from

amongst 27 schemes)

2. HDFC High Interest Fund - Short Term Plan - Ranked a Five Star Fund indicatingperformance among the top 10% in the category of"Open Ended Debt - Short Term"

for one year period ending December 31, 2007 (from amongst 20 schemes).

3.

HDFC Prudence Fund - Ranked a Five Star Fund indicating performance among thetop 10% in the category of "Open Ended Balanced" for the three year period ending

December 31, 2007 (from amongst 16 schemes).

Lipper Fund Awards 2008:

1. HDFC Equity Fund - Growth has been awarded the 'Best Fund over Ten Years' in the'Equity India Category' at the Lipper Fund Awards 2008 (form amongst 23 schemes).

It was awarded the Best Fund over ten years in 2006 and 2007 as well. 2008 makes it

three in a row


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PRODUCT & SERVICEOF HDFC MUTUAL FUND

1. TYPES OF MUTUAL FUND2. INVESTMENT PLAN3. PRODUCT OF MUTUAL FUND

4.1 - TYPES OF MUTUAL FUND SCHEME

(a)Open-ended Fund/ SchemeAn open-ended fund or scheme is one that is available for subscription and repurchase on acontinuous basis. These schemes do not have a fixed maturity period. Investors can convenientlybuy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.The key feature of open-end schemes is liquidity.

(b)Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is openfor subscription only during a specified period at the time of launch of the scheme. Investors caninvest in the scheme at the time of the initial public issue and thereafter they can buy or sell theunits of the scheme on the stock exchanges where the units are listed. In order to provide an exitroute to the investors, some close-ended funds give an option of selling back the units to themutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate thatat least one of the two exit routes is provided to the investor i.e. either repurchase facility orthrough listing on stock exchanges. These mutual funds schemes disclose NAV generally on

weekly basis.

(c)Sector specific funds/schemes

These are the funds/schemes which invest in the securities of only those sectors or industries asspecified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance ofthe respective sectors/industries. While these funds may give higher returns, they are more riskycompared to diversified funds. Investors need to keep a watch on the performance of thosesectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

(d)Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act,1961 as the Government offers tax incentives for investment in specified avenues. e.g. EquityLinked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer taxbenefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growthopportunities and risks associated are like any equity-oriented scheme.


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4.2 - INVESTMENT PLAN

4.2.1 - SYSTEMATIC INVESTMENT PLAN (SIP)

HDFC MF SIP is similar to a Recurring Deposit. Every month on a specified date an amount you

choose is invested in a mutual fund scheme of your choice. The dates currently available for SIPsare the 1st, 5th, 10th, 15th, 20th and the 25th of a month. Youll be amazed to learn about the

many benefits of investing through HDFC MF SIP.

Benefit 1

Become A Disciplined Investor

Being disciplined - Its the key to investing success. With the HDFC MF Systematic Investment

Plan you commit an amount of your choice (minimum of Rs. 1000 and in multiples of Rs. 100

thereof*) to be invested every month in one of our schemes.

Think of each SIP payment as laying a brick. One by one, youll see them transform into a

building. Youll see your investments accrue month after month. Its as simple as giving at least

6 postdated monthly cheques to us for a fixed amount in a scheme of your choice. Its the perfect

solution for irregular investors.

*Minimum amounts may differ for each Scheme. Please refer to SIP Enrolment Form for details.

Benefit 2

Reach Your Financial Goal

Imagine you want to buy a car a year from now, but you dont know where the down -payment

will come from. HDFC MF SIP is a perfect tool for people who have a specific, future financial

requirement. By investing an amount of your choice every month, you can plan for and meet

financial goals, like funds for a childs education, a marriage in the family or a comfortable

postretirement life. The table below illustrates how a little every month can go a long way.

Monthly Savings - What your savings may generate

Savings per month

(for 15 years)

Total amount invested(Rs. in Lacs)

Rate of return

6.0% 8.0% 10.0%

(rupees in lacs, 15 years later)*

5000 9.0 14.6 17.4 20.9

4000 7.2 11.7 13.9 16.7

3000 5.4 8.8 10.4 12.5

2000 3.6 5.8 7.0 8.3

1000 1.8 2.9 3.5 4.2

*Monthly instalments, compounded monthly, for a 15-year period.


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Disclaimer: The 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 HDFC Mutual

Fund Scheme(s). Please read Risk Factors.

Benefit3Take Advantage of Rupee Cost Averaging

Most investors want to buy stocks when the prices are low and sell them when prices are high.

But timing the market is time consuming and risky. A more successful investment strategy is to

adopt the method called Rupee Cost Averaging. To illustrate this well compare investing the

identical amounts through a SIP and in one lump sum.

Imagine Suresh invests Rs. 1000 every month in an equity mutual fund scheme starting in

January. His friend, Rajesh, invests Rs. 12000 in one lump sum in the same scheme. The

following table illustrate how their respective investments would have performed from Jan to

Dec:

Sureshs Investment Rajeshs Investment

Month NAV Amount Units Amount Units

Jan-04 9.345 1000 107.0091 12000 1284.1091

Feb-04 9.399 1000 106.3943

Mar-04 8.123 1000 123.1072

Apr-04 8.750 1000 114.2857

May-04 8.012 1000 124.8128

Jun-04 8.925 1000 112.0448

Jul-04 9.102 1000 109.8660

Aug-04 8.310 1000 120.3369

Sep-04 7.568 1000 132.1353

Oct-04 6.462 1000 154.7509

Nov-04 6.931 1000 144.2793Dec-04 7.600 1000 131.5789

*NAV as on the 10th every month. These are assumed NAVs in a volatile market



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Fund Scheme(s). Rupee Cost Averaging neither ensures you profits nor protects you from

making a loss in declining markets. Please read Risk Factors.

As seen in the table, by investing through SIP, you end up buying more units when the price is

low and fewer units when the price is high. However, over a period of time these market

fluctuations are generally averaged. And the average cost of your investment is often reduced.

At the end of the 12 months, Suresh has more units than Rajesh, even though they invested thesame amount. Thats because the average cost of Sureshs units is much lower than that of

Rajesh. Rajesh made only one investment and that too when the per-unit price was high.

Sureshs average unit price = 12000/1480.6012 = Rs. 8.105

Rajeshs average unit price = Rs. 9.345


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Benefit4

Grow Your Investment With Compounded Benefits

It is far better to invest a small amount of money regularly, rather than save up to make one large

investment. This is because while you are saving the lump sum, your savings may not earn much

interest.With HDFC MF SIP, each amount you invest grows through compounding benefits as well. That

is, the interest earned on your investment also earns interest. The following example illustrates

this.

Imagine Neha is 20 years old when she starts working. Every month she saves and invests Rs.

5,000 till she is 25 years old. The total investment made by her over 5 years is Rs. 3 lakhs. Arjun

also starts working when he is 20 years old. But he doesnt invest monthly. He gets a large bonus

of Rs. 3 lakhs at 25 and decides to invest the entire amount.

Both of them decide not to withdraw these investments till they turn 50. At 50, Nehas

Investments have grown to Rs. 46,68,273* whereas Arjuns investments have grown to Rs.

36,17,084*. Nehas small contributions to a SIP and her decision to start investing earlier than

Arjun have made her wealthier by over Rs. 10 lakhs.


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*Figures based on 10% p.a. interest compounded monthly.



Fund Scheme(s). Please read Risk Factors.

Benefit 5

Do All This Effortlessly

Investing with HDFC MF SIP is easy. Simply give us post-dated cheques or opt for an

Auto Debit from you bank account for an amount of your choice (minimum of Rs. 1000 and in

multiples of Rs. 100 thereof*) and well invest the money every month in a fund of your choice.

The plans are completely flexible. You can invest for a minimum of six months, or for as long as

you want. You can also decide to invest quarterly and will need to invest for a minimum of two

quarters.

4.2.2 - SYSTEMATIC TRANSFER PLAN (STP)

STP refers to Systematic Transfer Plan where in an investor invests a lump sum amount in one

scheme and regularly transfers (i.e. switches) a pre-defined amount into another scheme. Every

month on a specified date an amount you choose is transferred from one mutual fund scheme to

another of your choice.

Currently, Fixed Systematic Transfer Plan (FSTP) - Monthly Interval and Capital Appreciation

Systematic Transfer Plan (CASTP) - Monthly Interval facility is available to the Unit holders on

1st, 5th, 10th, 15th, 20th and 25th of a month and FSTP - Quarterly Interval and CASTP -

Quarterly Interval facility is available to the Unit holders on 1st, 5th, 10th, 15th, 20th and 25th

of the first month of each quarter.

The Entry Load Structure for the transferee schemes - HDFC Growth Fund, HDFC Equity

Fund, HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund, HDFC

Premier Multi-Cap Fund, HDFC Balanced Fund, HDFC Prudence Fund, HDFC Long Term

Advantage Fund and HDFC TaxSaver will be as follows:


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The Exit Load Structure is as follows:

For Transferee Schemes : HDFC Long Term Advantage Fund and HDFC TaxSaver - Nil

For Transferee Schemes : HDFC Growth Fund, HDFC Equity Fund, HDFC Top 200 Fund,

HDFC Capital Builder Fund, HDFC Core & Satellite Fund, HDFC Premier Multi-Cap Fund,

HDFC Balanced Fund and HDFC Prudence Fund.

In respect of each investment through STP less than Rs. 5 crore in value, an Exit Load of 1.25%

is payable if units are redeemed / switched-out on or before 2 years from the date of allotment. In

respect of each investment through STP equal to or greater than Rs. 5 crore in value, no Exit

Load is payable.

Thus, this facility offers the benefits similar to those of an SIP and is suitable for investors whointend to invest systematically and currently have funds for investments.

4.3 - PRODUCTS OF MUTUAL FUND

EQUITY/ GROWTH FUND

CHILDRENS GIFT FUND

LIQUID FUND

DEBT/ INCOME FUND


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EQUITY/ GROWTH FUND DEBT/INCOME FUND

HDFC Growth Fund

HDFC Top 200 Fund

HDFC Core and Satellite Fund

HDFC Index Fund - Sensex Plan

HDFC Index Fund - Sensex Plus Plan

HDFC Balanced Fund

HDFC Long Term Advantage Fund

(ELSS)

HDFC Long Term Equity Fund

HDFC Infrastructure Fund

HDFC Capital Builder Fund

HDFC Premier Multi-Cap

HDFC Index Fund - Nifty Plan

HDFC Arbitrage Fund

HDFC Equity Fund

HDFC Prudence Fund

HDFC TaxSaver (ELSS)

HDFC Mid-Cap Opportunities Fund

HDFC MF Monthly Income Plan - Short

Term Plan

HDFC Multiple Yield Fund

HDFC Income Fund

HDFC Short Term Plan

HDFC Gilt Fund - Short Term Plan

HDFC Floating Rate Income Fund -Short

Term Plan

HDFC Cash Management Fund - Savings

Plus Plan

HDFC MF Monthly Income Plan - Long

Term Plan

HDFC Multiple Yield Fund - Plan 2005

HDFC High Interest Fund

HDFC High Interest Fund - Short term

Plan

HDFC Gilt Fund - Long Term Plan

HDFC Floating Rate Income Fund - Long

Term Plan

CHILDRENS GIFT FUND LIQUID FUNDHDFC Children's Gift Fund - Investment

Plan

HDFC Children's Gift Fund - Savings Plan

HDFC Liquid Fund

HDFC Liquid Fund Premium Plan

HDFC Liquid Fund Premium Plus Plan

HDFC Cash Management FundCall
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chemeID=286f859d-0c7f-4711-a17f-29bc77608573http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=74779436-b9f5-4e86-b310-e623aa907886http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=74779436-b9f5-4e86-b310-e623aa907886http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=360fab99-f6ad-4245-b4e5-35505768b2c0http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=8ca76792-be82-40f0-8f25-5277ae3991f8http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=8ca76792-be82-40f0-8f25-5277ae3991f8http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=40a2d377-6811-447a-bc55-827a49117b7fhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=0a1b50b0-9de5-43cc-8042-e5861ca9a495http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=98376b12-22be-43da-b99b-2bd836058138http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=98376b12-22be-43da-b99b-2bd836058138http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=1bf87ce3-3b57-4b38-8015-9d3a7a4fc2d1http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=1bf87ce3-3b57-4b38-8015-9d3a7a4fc2d1http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=ca541d4f-0440-49ff-982f-4d9382349c8bhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=ca541d4f-0440-49ff-982f-4d9382349c8bhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=710548dc-1717-4647-bb79-4b9d177bd5f8http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=0e095572-a6d4-4d51-a691-27d93ad931e5http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=b379d32b-9c69-44f9-b512-7d82fda58fc3http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=998f6825-a1f3-4f87-9f2a-1b2e2b7f84a4http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=842e2315-9472-4bb6-8a59-71620f845343http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=842e2315-9472-4bb6-8a59-71620f845343http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=909ef6c9-2c56-4ccb-8095-d618424147d4http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=f2f457f7-fd19-44d1-a788-8351bbb75ffdhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=2ea70d4d-e479-49f8-9f09-903a3d7bd8d5http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=9f8b4a2a-9cb6-456b-b875-ea727ef6ac85http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=4e113f3f-5cd4-43a6-8242-6b9e6b740364http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=a5bbcbb2-979f-4ee2-9c45-93e6c46b15bdhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=bdf299ee-f0ec-4a65-869d-d1892cfaa65ahttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=d3784de8-02bd-4137-8243-88fbfc8dcc4fhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=06f4c1bc-a8c9-4153-965e-973ffe097332http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=47f204c5-a61a-40de-bdaf-ede282e3cf18http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=47f204c5-a61a-40de-bdaf-ede282e3cf18http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=7128c600-3c89-473c-aa93-e2ac8c5573bahttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=bd7ed591-894d-43b9-87b1-f0daa8c0eb7chttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=391e8f23-74fe-4aad-b0e6-d205a442dbc4http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=9932896e-e0ae-465f-b9fe-e87e28572077http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=f52bc715-0cfc-4a6a-941b-9a2618e62511http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=e510b986-bbdd-4f8b-9eef-41fc9b20087f


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HDFC Cash Management Fund - Savings

Plan

SOME POPULAR FUNDS ARE EXPLAIN HERE

HDFC Growth Fund

HDFC Growth fund, an open-ended growth scheme, applies an investment approach based on a

set of well established but flexible principles that emphasize the concept of sustainable economic

earnings cash return on investment. The objective is to identify business wi th superior growth

prospects good management at a reasonable price. The five basic principles that serve the

foundation for this approach are as follows:

Focus on the long term

Investment confers proportionate ownership of the business

Maintain a margin safety

Maintain a balanced outlook on the marketDiscipline approach to selling.

The investment philosophy rests on a two-pronged approach. 60-80% of the portfolio will aim to

stay invested for most of the time in large cap stocks that satisfy the above investment criteria.

This allocation to large cap stocks also ensures greater liquidity in the portfolio. 20-40% of the

portfolio will be invested in companies of scale that are either large market share holder

Basic Scheme Information,

Benchmark - BSE Sensex

Disclaimer: The above investment simulation is for illustrative purposes only and should not be

construed as a promise on minimum returns and safeguard of capital. The AMC / Mutual Fund is

not guaranteeing or promising or forecasting any returns. SIP does not assure a profit or

guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or

contact nearest ISC for SIP Load Structure

Nature of Scheme Open Ended Growth Scheme

Inception Date September 11, 2000

Option/Plan Dividend Plan, Growth Plan. The Dividend Planoffers Dividend Payout and Reinvestment Facility.

Plan name NAV Date NAV value

Dividentd plan 18 Aug 2008 29.0270

Growth plan 18 Aug 2008 58.9370
http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=33d0f25d-3f39-4237-a8ac-1f47a6034b38http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=33d0f25d-3f39-4237-a8ac-1f47a6034b38http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=33d0f25d-3f39-4237-a8ac-1f47a6034b38http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=33d0f25d-3f39-4237-a8ac-1f47a6034b38


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HDFC TOP-200 FUND

Investment Objective

The investment objective is to generate long term capital appreciation from a portfolio of equityand equity linked instruments. The investment portfolio for equity and equity linked instruments

will be primarily drawn from the companies in the BSE 200 Index. Further, the Scheme may also

invest in listed companies that would qualify to be in the top 200 by market capitalization on the

BSE even though they may not be listed on the BSE This includes participation in large IPOs

where in the market capitalization of the company based on issue price would make the company

a part of the top 200 companies listed on the BSE based on market capitalization

Basic Scheme InformationNature of Scheme Open Ended Growth Scheme

Inception Date October 11, 1996

Option/Plan Dividend Plan, Growth Plan. The Dividend Plan offersDividend Payout and Reinvestment Facility.

Plan Name NAV Date NAV Amount

Dividend Plan 18 Aug 2008 38.29

Growth Plan 18 Aug 2008 129.56

Investment Pattern

The Scheme may also invest up to 25% of net assets of the Scheme in derivatives such as Futures

& Options 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.

The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in overseas

markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds and mutual fundsand such other instruments as may be allowed under the Regulations from time to time.


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Returns

HDFC Top 200

Fund

(NAV as at evaluation date, Rs.

Per unit)

115.424

Date Period NAV Returns(%) $$^

BenchmarkReturns(%)#

March 30, 2007 Last 458 days 104.504 8.24** 4.45**December 28,

2007

Last Six months (185days)

167.8880 -31.25* -37.53*

June 29, 2007 Last 1 Year (367 days) 120.34 -4.06** -8.85**

June 30, 2005 Last 3 Years (1096days)

57.343 26.23** 21.2**


23.358 37.6** 29.43**


12.749 27.12** 17.55**

October 11, 1996 Since Inception (4280

days)

10.000 25.3** 15.18**

SIP Returns

SIP Investments Since

Inception

10 Year 5 Year 3 Year 1 Year

Total Amount Invested

(Rs.)

141,000.00 120,000.00 60,000.00 36,000.00 12,000.00

Market Value as on June

30, 2008

835,535.45 580,129.04 113,375.02 41,661.29 9,843.01

Returns (Annualised)*% 27.85% 29.65% 25.77% 9.73% -31.64%

Benchmark Returns 18.32% 20.25% 18.90% 5.82% -38.40%

Benchmark - BSE 200

Disclaimer: The above investment simulation is for illustrative purposes only and should not be

construed as a promise on minimum returns and safeguard of capital. The AMC / Mutual Fund is

not guaranteeing or promising or forecasting any returns. SIP does not assure a profit or

guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or

contact nearest ISC for SIP Load Structure


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HDFC EQUITY FUND

HDFC Equity Fund is an open-ended growth scheme, which aims to generate long-

term capital appreciation. The scheme maintains a focused portfolio predominantlyof large cap stocks, through there is controlled exposure to mid caps. The schemes

however always remain diversified across sectors. Moreover, the sect oral

allocation is done keeping in mind to diversify across sectors weakly co-related to

each other to further reduce risk. The underlying theme while managing the scheme

is to invest in businesses that are sustainable and for good quality.

Investment Strategy:In order to provide long term capital appreciation, the Scheme will invest predominantly ingrowth companies. Companies selected under this portfolio would as far as practicable consist ofmedium to large sized companies which:

are likely achieve above average growth than the industry; enjoy distinct competitive advantages, and have superior financial strengths.

The aim will be to build a portfolio, which represents a cross-section of the strong growth

companies in the prevailing market. In order to reduce the risk of volatility, the Scheme

will diversify across major industries and economic sectors

Investment PatternThe asset allocation under the Scheme will be as follows:

Sr.No. Asset Type (% of Portfolio) Risk Profile

1 Equities and Equity Related Instruments 80 - 100 Medium to High

2 Debt & Money Market Instruments 0 - 20 Low to Medium

Investment in Securitized debt, if undertaken, would not exceed 20% of the net assets of the

scheme. The Scheme may also invest up to 25% of net assets of the Scheme in derivatives such

as Futures & Options 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 Regulations.


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The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in overseas

markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds and mutual funds

and such other instruments as may be allowed under the Regulations from time to time. Also

refer to the Section on Policy on off-shore Investments by the Scheme(s).

If the investment in equities and related instruments falls below 70% of the portfolio of the

Scheme at any point in time, it would be endeavored to review and rebalance the composition.

Not 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 AMC, the intention being at all

times to seek to protect the NAV of the scheme. Such changes will be for short term and

defensive considerations. Provided further and subject to the above, any change in the asset

allocation affecting the investment profile of the Scheme and amounting to a change in the

Fundamental Attributes of the Scheme shall be effected in accordance with sub-regulation (15A)

of regulation 18 of SEBI regulations.

HDFC Infrastructure Fund


To seek long-term capital appreciation by investing predominantly in equity and equity related

securities of companies engaged in or expected to benefit from growth and development of

infrastructure.

* Investments in securitized debt shall not normally exceed 30% of the net assets of the Scheme.

The Scheme may seek investment opportunity in Foreign Securities (max. 35% of net assets).

The Scheme may take derivatives position for hedging, portfolio balancing or to undertake any

other strategy as permitted under SEBI Regulations from time to time (max. 20% of the net

assets) based on the opportunities available subject to SEBI Regulations.


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26

HDFC Prudence Fund


The investment objective of the Scheme is to provide periodic returns and capital appreciationover a long period of time, from a judicious mix of equity and debt investments, with the aim toprevent/ minimize any capital erosion.

Basic Scheme Information

Nature of Scheme Open Ended Balanced Scheme

Inception Date February 01, 1994

Option/Plan Dividend Plan, Growth Plan. The Dividend Plan offersDividend Payout and Reinvestment Facility.

Investment StrategyAs outlined above, the investments in the Scheme will comprise both debt and equities. The

Fund would invest in Debt instruments such as Government securities, money market

instruments, securitized debts, corporate debentures and bonds, preference shares, quasi

Government bonds, and in equity shares. In the long term, the mix between debt instruments and

equity instruments is targeted between 60:40 and 40:60 respectively. The exact mix will be a

function of interest rates, equity valuations, reserves position, risk taking capacity of the portfolio

without compromising the consistency of dividend pay out (in the case of Dividend Plan), need

for capital preservation and the need to generate capital appreciation.

Fund ManagerMr. Prashant Jain

Mr. Anand Laddha - Dedicated Fund Manager - Foreign Securities

Investment Pattern

The following table provides the asset allocation of the Scheme's portfolio.

The asset allocation under the respective Plans will be as follows :

Sr.No. Type of Instruments Normal

Allocation

(% of Net Assets)

Risk Profile

1 Equities & Equity related instruments 40 - 75% Medium to High

2 Debt Securities, Money Marketinstruments(including cash/call money)

25 - 60% Low to Medium


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HDFC Capital Builder Fund

HDFC Capital Builder Fund, an open-ended growth scheme, aims to invest in strong

companies at prices that below fair value in the opinion of the fund managers. The 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 quality well

managed neglected stocks. The 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, VRS expenses or other such one time effects that may subdue profits in the

near term. This also usually results in the shares of such companies being relatively illiquid.

While assuming such relative risk adjusted liquidity risk the fund managers propose to

capitalize on expected pick up reported earning as result of strong growth prospects in the future.

This eventually translates in to more liquidity depending on the success of this strategy. Such

opportunities are available in large companies as well as small companies. While there is no

criteria for stock selection based on market capitalization the endeavor is to keep a balance of

companies in the portfolio between big and small companies, on one category overwhelming the

other

Basic Scheme Information

Nature of Scheme Open Ended Growth Scheme

Inception Date February 01, 1994

Option/Plan Dividend Plan,Growth Plan. The Dividend Plan offersDividend Payout and Reinvestment Facility.

Plan Name NAV

Date

NAV Amount

Dividend Plan 18Aug

2008

22.075

Growth Plan 18Aug2008

69.918


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Investment in Securitized debt, if undertaken, would not exceed 20% of the net assets of thescheme.The Scheme may also invest upto 25% of net assets of the Scheme in derivatives such as Futures& Options and such other derivative instruments as may be introduced from time to time for thepurpose of hedging and portfolio balancing and other uses as may be permitted under the

regulations and guidelines.

The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in overseasmarkets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds and mutual fundsand such other instruments as may be allowed under the Regulations from time to time. Alsorefer to the Section on Policy on off-shore Investments by the Scheme(s

*Absolute Returns **Compounded Annualized Returns

#S&PCNX500

^ Past performance may or may not be sustained in the future

Benchmark - S & P CNX 500 Disclaimer: The above investment simulation is for illustrative

purposes only and should not be construed as a promise on minimum returns and safeguard of

capital. The AMC / Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP

does not assure a profit or guarantee protection against a loss in a declining market. Please refer

SIP Enrolment Form or contact nearest ISC for SIP Load Structure.


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FINDING

FINDINGS

In India Mutual fund Industry has seen Dramatic improvements in Quality as well as quality of

products and services offering over the past decade, but the industry has witnessed growth in the

last 10 years considerably below potential. The Asset under Management have grown from about

Rs. 470 billion in march 1993 to Rs. 1,540 billion in April 2004(CAGR of 11.4 percent) & now

it grown to Rs. 5,620 billion till sep 2008. This has mainly achieved due to collection through

mutual fund IPOs that has been increasing due to the investors feeling that it is cheaper in its

IPO stage on account of its Rs. 10 NAV.

There has been a strong appreciation in equities in comparison to the debt market, which has

shown a downward trend last year. And in turn Mid-cap and diversified funds have delivered the

highest in comparison to other funds. As the Indian economy is showing a growing trend with

GDP more than 6% and expected to show 8% and Indian household saving being 24% of the

entire GDP. There is a strong growth potential of Mutual fund industry in India.

In Sagar 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 HNIs though these people are given more emphasis

by all the Mutual funds and distribution channels. With the introduction of SIPs the industry has

created some options clear for retail investors to enter this market. My survey says that it the

awareness level that is playing acting as an obstacle in the growth of Mutual fund Industry in

Sagar as a whole.


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Some of the Major Findings

1. It is found that HDFC is a favorable Mutual Fund.2. The basis objective behind investments are mainly long-term capital appreciation, current

income & to some extent tax benefits.

3. The performance of HDFC Core & Satellite & HDFC Top 200 Fund is very good.4. It is seen that the investment in growth fund is very high. Because the scope of income

and capital appreciation in the long term.

5. It is observed that the driving aspects of investments in mutual fund are safety, fundperformance, Service, Liquidity, return & tax benefits.

6. The type of investment plan that most investor s prefer is to get principal safety at alltime with low returns rather than high return with no safety.

7. HDFC Mutual Fund does not provide monthly income scheme which other mutualfunds have and performance is very appreciable.

8. Fund Managers have suggested HDFC prudence ,HDFC TaxSaver , HDFC Equity forinvestment , For the top 5.

9. HDFC Prudence is performing good with comparison to the prudence fund of any othermutual fund house.

10.At this period of time when market condition is not so good, it is better for investors toinvest through Systematic Investment plan. Which reduces the market risk?


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RECOMMENDATION

HDFC Mutual Fund is one of the largest mutual funds and well-established fund house in the

country with consistent and above average fund performance across categories since itsincorporation on December 10, 1999. The single most important factor that drives HDFC Mutual

Fund is its belief to give the investor the chance to profitably invest in the financial market,

without constantly worrying about the market swings.

Some major recommendation:

1) Fund managers should continuous Investor awareness Programs to make theinvestors aware of technicalities of fund management and the return aspects.

2) Agents, Service personnel must be able to give correct and timely informationabout NAV and the return on different schemes.

3) Monthly income scheme should be introduced.4) Scheme should be offered as per the needs and the requirement of the industries.5) The regulatory norms provided by the regulatory authorities like SEBI are

required to be known to all including investors.


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CONCLUSION

The global financial market has transformed from Sellers market to Buyers market with

liberalization, Globalizations and privatization. The 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 BIRLA, HDFC, and ICICI have come up with aggressive strategies to beat the

foreign funds. Now the cutthroat competition goes on and on.

HDFC Mutual funds have rewarded investors with hand some returns. The good news is that this

is poised to become a trend. The mutual funds have strengthened their distribution networks,

become more transparent and investor friendly and are rewarding investors. The mutual fund is

finally, proving itself as a vehicle of safety for investments. But it is still the fund managers

investment philosophy that makes the difference between the winner and the losers.

Careful 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 organizations. Regulatory measures by SEBI should be clearly explained to the investors.

Positioning of the schemes and their branding will help a lot for growth of the industry.

Creativity and innovation are the means of marketing in the days to come for Indian mutual fund

market.


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BIBLIOGRAPHY

MAGAZINES

INDIA TODAY

BUSINESS WORLD

WEB SITES

WWW.HDFCFUND.COM

http://www.hdfcfund.com/AboutUs/

http://www.hdfcfund.com/Products/

WWW.AMFIINDIA.COM

http://www.amfiindia.com/showhtml.asp?page=mfconcept#A
http://www.hdfcfund.com/http://www.hdfcfund.com/http://www.hdfcfund.com/AboutUs/http://www.hdfcfund.com/Products/http://www.hdfcfund.com/Products/http://www.amfiindia.com/http://www.amfiindia.com/http://www.amfiindia.com/http://www.hdfcfund.com/Products/http://www.hdfcfund.com/AboutUs/http://www.hdfcfund.com/

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RANJEET RAJPUT