A SUMMER TRAINING PROJECT ON

HDFC MUTUAL FUND

Submitted JIWAJI UNIVERSITY GWALIOR (M.P.) in pa tia! "u!"i!!ment #" t$e a%a d #" de& ee #" 'a($e!#
SUBMITTED TO

O" 'u)ine)) Admini)t ati#n

(*+,,-,.)
SUBMITTED BY SARIKA SUMAN BBA " SEM

Ms.Tanu Khar
!"a(u!t/ &uide.)

JAIN GROUP OF COLLEGES G#ALIOR

DECLARATION
I SARIKA SUMAN Hereby Declare That The Summer Training Entitled HDFC Mu$ua% Fun& has been prepared as part of the degree of a BBA . JAIN GROUP OF COLLEGES G#ALIOR and it is beside on original wor as will be used academic purpose

Da$ ' P%a( ' G)a%*+r

SARIKA SUMAN BBA " Seme)te

A01NOWLE2GEMENT
It gi!es me immense pleasure to e"press my deep sense of gratitude to mr. #.$ %erma JAIN GROUP OF COLLEGES G#ALIOR for him !aluable guidance and consistent super!ision throughout the course. I am also thankful to

Ms.Tanu Khar my Company Guide of

3HDFC Mu$ua% Fun&. for his valuable guidance for preparing the final Report and also for providing the necessary facilities. Finally I am indebted to our other faculty members, my friends and my parents who gave their full fledged co operation for successful completion of my pro!ect. It was indeed learning e"perience for me.

Da$

'

SARIKA SUMAN BBA " Seme)te

P%a( ' G)a%*+r

0ERTI4I0ATE O4 4A0ULTY GUI2E

#his is to certify that M). SARIKA SUMAN student of BBA " Seme)te programme has completed his$her %ummer #raining of &' (ays prepared this report under my guidance. HDFC LIFE
INSURANCE #ORKING CAPITAL.

Da$ ', P%a( ',G#ALIOR

Ms.Tanu Khar
("a(u!t/ &uide.)

TOPIC CHAPTER OBJECTI"E OF THE STUDY -

PAGE NO

. 0

INTRODUCTION
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ABOUT HDFC MUTUAL FUND

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PRODUCT 3SER"ICE
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/1 25 46

PART OF MY SUMMER TRAINING METHODOLOGY OF THE STUDY

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7UESTIONARIE FINDING8 RECOMMENDATION8 CONCLUSION BIBLIOGRAPHY

.1 .5 5/

O'JE0TIVE O4 T5E STU2Y

OBJECTI"E OF THE STUDY

Indian financial system has been e"piring the !ast effect of globali&ation i.e. drastic interest rate cut' political disturbances' security scam etc ha!e scattered the common in!estor(s perception in selecting !arious in!estment portfolio. )ost of the security holders ha!e lost their confidence in newly come*up corporate sectors for in!estment. +oo ing to the situation' it is ,uite encouraging to analy&e how the HD-# )utual -und able to trap the deposits by introducing !arious schemes and how it protects the interest of the in!estors. The main study is based on the performance and analysis of !arious schemes with reference to HD-# )utual -und that is a leading mutual fund industry in India. The total performance analysis of financial instruments with reference to the HD-# )utual -und has got ob.ecti!es. This are as follows/* To now the performance of the different schemes. The comparati!e study of HD-# )utual -und with other mutual funds. To now the in!estment pattern of the in!estors in different schemes. The benefits made from the in!estment on the different schemes. To now the ran ing of the HD-# )utual -und Schemes. To now the di!ersify portfolio of HD-# )utual -und. To now the ser!ice which HD-# )utual -und is pro!iding to its in!estors with compare to other mutual funds.

INTRO2U0TION

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INTRODUCTION
The financial mar et plays a crucial role in the in the economic de!elopment of a country by facilitating the allocation of scarce resources. -inancial mar ets essentially in!ol!e the allocation of resources. This can be thought of as the brain of the entire economic system' the locus of central decision* ma ing0 if they fail' not only will the sectors profit be lower than would otherwise ha!e been' but the performance of the entire economic system may be impaired. The efficiency of financial mar et how e!er' depends on the e"istence of acti!e and efficient financial intermediaries in the system. Deposit ta ing institutional in!estor is the important financial intermediaries in!ol!ed in the tas of allocating assets. Structural changes in the financial mar et ha!e induced a re!erse trend in financial intermediation' i.e. financial disintermediation' in which the central role of ban ing is being ta en o!er by in!estment institutions and institutional in!estors. The shift from a credit* based system to a financial has initiated the process of disintermediation' and capital mar et based factors li e insurance' pension funds and mutual funds are increasingly playing the central role. The reforms ha!e successfully dismantled the entry barriers' with the result that today there are domestic and foreign financial institutions' li e mutual funds' bro ing firms and insurance companies' operating in the Indian mar et. The introduction of capital ade,uacy norms' prudential regulation and world class regulatory mechanisms to protect the interest of in!estor' besides the strict re,uirement of disclosure' ha!e gi!en a boost to the confidence of domestic and foreign in!estors. The Indian economy has slowly integrated itself with the global economy and financial mar et.

#ha$ *s a Mu$ua% Fun&: )utual fund is a mechanism for pooling the resources by issuing units to the in!estors and in!esting funds in securities in accordance with ob.ecti!es as disclosed in offer document. In!estments in securities are spread across a wide cross*section of industries and sectors and thus the ris is reduced. Di!ersification reduces the ris because all stoc s may not mo!e in the same direction in the same proportion at the same time. )utual fund issues units to the in!estors in accordance with ,uantum of money in!ested by them. In!estors of mutual funds are nown as unit holders. The profits or losses are shared by the in!estors in proportion to their in!estments. The mutual funds normally come out with a number of schemes with different in!estment ob.ecti!es which are launched from time to time. A mutual fund is re,uired to be registered with Securities and E"change Board of India 1SEBI2 which regulates securities mar ets before it can collect funds from the public.

/.- , H+) *s a ;u$ua% <un& s $ u=:

A mutual fund is set up in the form of a trust' which has sponsor' trustees' asset )anagement #ompany 1A)#2 and custodian. The trust is established by a sponsor or more than one sponsor who is li e promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders. Asset )anagement #ompany 1A)#2 appro!ed by SEBI manages the funds by ma ing in!estments in !arious types of securities. #ustodian' who is registered with SEBI' holds the securities of !arious schemes of the fund in its custody. The trustees are !ested with the general power of superintendence and direction o!er A)#. They monitor the performance and compliance of SEBI 3egulations by the mutual fund. SEBI 3egulations re,uire that at least two thirds of the directors of trustee company or board of trustees must be independent i.e. they should not be associated with the sponsors. Also' 456 of the directors of A)# must be independent. All mutual funds are re,uired to be registered with SEBI before they launch any scheme. Howe!er' 7nit Trust of India 17TI2 is not registered with SEBI 1as on 8anuary 94' 25522.

/./ , #ha$ *s N $ Ass $ "a%u !NA"> +< a s(h ; :

The performance of a particular scheme of a mutual fund is denoted by :et Asset %alue 1:A%2. )utual funds in!est the money collected from the in!estors in securities mar ets. In simple words' :et Asset %alue is the mar et !alue of the securities held by the scheme. Since mar et !alue of securities changes e!ery day' :A% of a scheme also !aries on day to day basis. The :A% per unit is the mar et !alue of securities of a scheme di!ided by the total number of units of the scheme on any particular date. -or e"ample' if the mar et !alue of securities of a mutual fund scheme is 3s 255 la hs and the mutual fund has issued 95 la hs units of 3s. 95 each to the in!estors' then the :A% per unit of the fund is 3s.25. :A% is re,uired to be disclosed by the mutual funds on a regular basis * daily or wee ly * depending on the type of scheme.

/.1 , S(+= <+r D ? %+=; n$ +< Mu$ua% Fun&

A )utual -und is the most suitable in!estment for the common man as it offers an opportunity to in!est in a di!ersified' professionally managed bas et of securities at a relati!ely low cost. India has a burgeoning population of middle class now estimated around ;55 million. A typical Indian middle class family can ha!e li,uid sa!ings ranging from 3s.2 to 3s.95 +acs today. In!estments in Ban s are li,uid and safe' but with the falling rate of interest offered by Ban s on Deposits' it is no longer attracti!e. At best a part can be sa!ed in ban deposits' but what is the other sources of in!estment for the common man< )utual -und is the ready answer. %iewed in this sense globally India is one of the best mar ets for )utual -und Business' so also for Insurance business. This is the reason that foreign companies compete with one another in setting up insurance and mutual fund business units in India. The sheer magnitude of the population of educated white collar employees pro!ides unlimited scope for de!elopment of )utual -und Business in India.

/.2. , B n <*$s +< Mu$ua% Fun&s

There are numerous benefits of in!esting in mutual funds and one of the ey reasons for its phenomenal success in the de!eloped mar ets li e 7S and 7= is the range of benefits they offer' which are unmatched by most other in!estment a!enues. >e ha!e e"plained the ey benefits in this section. The benefits ha!e been broadly split into uni!ersal benefits' applicable to all schemes' and benefits applicable specifically to open*ended schemes.

-. Pr+< ss*+na% Mana@ ; n$ The in!estor a!ails of the ser!ices of e"perienced and s illed professionals who are bac ed by a dedicated in!estment research team which analyses the performance and prospects of companies and selects suitable in!estments to achie!e the ob.ecti!es of the scheme. /. D*? rs*<*(a$*+n )utual -unds in!est in a number of companies across a broad cross*section of industries and sectors. This di!ersification reduces the ris because seldom do all stoc s decline at the same time and in the same proportion. ?ou achie!e this di!ersification through a )utual -und with far less money than you can do on your own.

;. C+n? n* n$ A&;*n*s$ra$*+n In!esting n in a )utual -und reduces paperwor and helps you a!oid many problems such as bad deli!eries' delayed payments and unnecessary follow up with bro ers and companies. )utual -unds sa!e your time and ma e in!esting easy and con!enient. 2. R $urn P+$ n$*a% @!er a medium to long*term' )utual -unds ha!e the potential to pro!ide a higher return as they in!est in a di!ersified bas et of selected securities. 4. L+) C+s$s )utual -unds are a relati!ely less e"pensi!e way to in!est compared to directly in!esting in the capital mar ets because the benefits of scale in bro erage' custodial and other fees translate into lower costs for in!estors. .. L*Au*&*$B In open*ended schemes' you can get your money bac promptly at net asset !alue related prices from the )utual -und itself. >ith close*ended schemes' you can sell your units on a stoc e"change at the pre!ailing mar et price or a!ail of the facility of direct repurchase at :A% related prices which some close*ended and inter!al schemes offer you periodically.

5. Trans=ar n(B ?ou get regular information on the !alue of your in!estment in addition to disclosure on the specific in!estments made by your scheme' the proportion in!ested in each class of assets and the fund managerAs in!estment strategy and outloo . 0. F% C*D*%*$B Through features such as regular in!estment plans' regular withdrawal plans and di!idend rein!estment plans' you can systematically in!est or withdraw funds according to your needs and con!enience.

9. Ch+*( +< S(h ; s )utual -unds offer a family of schemes to suit your !arying needs o!er a lifetime. -6. # %% R @u%a$ & All )utual -unds are registered with SEBI and they function within the pro!isions of strict regulations designed to protect the interests of in!estors. The operations of )utual -unds are regularly monitored by SEBI. --. Un& rs$an&*n@ an& Mana@*n@ R*sE All in!estments whether in shares' debentures or deposits in!ol!e ris / share !alue may go down depending upon the performance of the company' the industry' state of capital mar et and the economy0 generally' howe!er longer the term' lesser the ris 0 companies may default in payment of interestBprincipal on their depositsBbonds debentures0 the rate of interest on in!estment may fall short of the rate of inflation reducing the purchasing power. >hile ris cannot be eliminated' s illful management can minimi&e ris . )utual fund helps to reduce ris through di!ersification and professional management. The e"perience and e"pertise of )utual -und managers in selecting fundamentally sound securities and timing their purchases and sales help them to build a di!ersified portfolio that minimi&e ris and ma"imi&es returns. 92. TaC B n <*$s The incomes under )utual -unds are much more Ta" efficient than any fi"ed income security due to the following benefits/*
2

 Section C5+ of the income Ta" Act '9DE9 enables ta" free income up to rs 94555 and di!idends from )- s are eligible for this benefit.

>hen you in!est for o!er a year' the ta" payable on encashment is +ong term #apitals gains ta" at 256. @nce also get an inde"ation benefit which has been appro"imately C6 per year. This reduces the ta"able income and thus decreases the ta" liability.

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

-ull e"emption from capital gains ta" as it comes under Section 4FEABEB of the income ta" Act.

@ne has to pay ta" only when he encash units' but ha!e to pay ta" on the interest earned on other debt instruments e!ery year on an accrual basis' e!en though he recei!es the interest later. This generates higher post ta" returns compared to other debt instruments. Ta" is .ust li e a monster that frightens a number of indi!iduals through out the nation. There are .ust tow way to fight with this monater/ . #oncealBDepress Income . )a e ta" efficient in!estments. $erhaps the second option is far better than the first as it gi!es the peace of mind together with a feeling that one is a responsible citi&en of the nation. >ith increasing amount of awareness that is ta ing birth in the minds of in!estors' mutual fund has become cynosure of the eye of the se!eral in!estors. The ta"es a!ailable are tow inds/

. To the mutual fund* as e"plained below in :o 9 . To the In!estor* as e"plained below in :o 2 -. Mu$ua% Fun& TaCa$*+n . )utual fund is fully e"empted from the ta" under Section95 12;D2 of the Income Ta" Act9DE9. . It recei!es all income without deduction at source. . )utual funds do not ha!e to pay ta" on trading profit' short term capital gain' di!idend income' underwriting commission' placement fees' long term capital gains' other income' etc. /. B n <*$s $+ $h In? s$+rs There are number of benefits that the in!estor of a mutual fund a!ail. These are discussed as follows/ .3esident 7nit Holders* In case of an indi!idual or Hindu 7ndi!ided -amilies 1H7-(s2' income by way of di!idends' if any from unit of schemes of the fund together with other income on specified in!estmentBdeposit are e"cept from ta" within the o!erall limit of 3s.94555B* specified under SectionC5+ of the I.T. Act'9DE9. Since di!idends from shares no longer in!ite di!idend ta" and hence the whole limit is a!ailable for mutual fund di!idends. . Ta" deduction at source* as per Section9DEA of the Income Ta" Act' 9DE9' no deduction of ta" at source is made from any income payable to the unit holders. This implies that there is no ta" deduction at source for redemption up to any limit. As per Section9DF of the I.T.Act 9DE9' deduction of ta" at source is not made if the di!idend income from a mutual fund does not e"ceed 3s95555 per annum.

/.. , In? s$; n$ (r*$ r*a

L+) r (+s$ It is a lower cost of in!estment as compare to other mode of in!estment option in the mar et. Here the in!estor can in!est a minimum of 3s455 in the scheme of E+SS 1E,uity +in Sa!ing Scheme2. L ss =a= r )+rE Here less paper wor is re,uire than other. The in!estor gi!e his detail information li e hisBher name'age'address'phone no.' pan card no' nominee name and address1in case of minor2 and three full signature of the candided. N+ (ash Transa($*+ns In!estor need not re,uire paying cash' instead of cash in!estor has to pay che,ue or demand draft. >hich help to pre!ent misappropriation and also sa!e the ta". Here the in!estor .ust writes the product name of mutual fund and sign on it. It also sa!es the time. N+ A@ Bar There is no age bar of in!estor here any age group can in!est in mutual fund. In case of minor1below 9C year2 there is a nominee' so a child can in!est through his guardian and a person ha!ing age of G5 also in!est in mutual fund 'which is not possible in other in!estments. S r?*( +r anB E*n& +< *n(+; @r+u= A ser!ice holder or any ind of income group or a student or unemployed people can in!est in mutual fund but the person is a rational human being ha!ing sound nowledge of in!estment company.

A'OUT 5240 6MUTUAL 4UN2

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1.- , #hB HDFC Mu$ua% Fun&:

HD-# )utual -und is one of the largest mutual funds and well*established fund house in the country with consistent and abo!e a!erage fund performance across categories since its incorporation on December 95' 9DDD. >hile our past e"perience does ma e us a !eteran' but when it comes to in!estments' we ha!e ne!er belie!ed that the e"perience is enough.

Our In? s$; n$ Ph*%+s+=hB

The single most important factor that dri!es HD-# )utual -und is its belief to gi!e the in!estor the chance to profitably in!est in the financial mar et' without constantly worrying about the mar et swings. To reali&e this belief' HD-# )utual -und has set up the infrastructure re,uired to conduct all the fundamental research and bac it up with effecti!e analysis. @ur strong emphasis on managing and controlling portfolio ris a!oids chasing the latest HfadsI and trends.

# O<< r
>e belie!e' that' by gi!ing the in!estor long*term benefits' we ha!e to constantly re!iew the mar ets for new trends' to identify new growth sectors and share this nowledge with our in!estors in the form of product offerings. >e ha!e come up with !arious products across asset and ris categories to enable in!estors to in!est in line with their in!estment ob.ecti!es and ris ta ing capacity. Besides' we also offer $ortfolio )anagement Ser!ices.

Our A(h* ? ; n$s

HD-# Asset )anagement #ompany 1A)#2 is the first A)# in India to ha!e been assigned the J#3ISI+ -und House +e!el K 9( rating. This is its highest -und Lo!ernance and $rocess Muality 3ating which reflects the highest go!ernance le!els and fund management practices at HD-# A)# It is the only fund house to ha!e been assigned this rating for two years in succession. @!er the past' we ha!e won a number of awards and accolades for our performance

1./ , SPONSORS
H+us*n@ D ? %+=; n$ F*nan( C+r=+ra$*+n L*;*$ & !HDFC>. HD-# was
incorporated in 9DGG as the first speciali&ed )ortgage #ompany in India. HD-# pro!ides financial assistance to indi!iduals' corporate and de!elopers for the purchase or construction of residential housing. It also pro!ides property related ser!ices 1e.g. property identification' sales ser!ices and !aluation2' training and consultancy. @f these acti!ities' housing finance remains the dominant acti!ity. HD-# has a client base of around 92 lac borrowers' around C lac depositors' o!er 9.5C lac shareholders and 45'555 deposit agents' as at )arch ;9' 255C. HD-# has raised funds from international agencies such as the >orld Ban ' I-# 1>ashington2' 7SAID' DEL' ADB and =f>' international syndicated loans' domestic term loans from ban s and insurance companies' bonds and deposits. HD-# has recei!ed the highest rating for its bonds and deposits program for the thirteenth year in succession. HD-# Standard +ife Insurance #ompany +imited' promoted by HD-# was the first life insurance company in the pri!ate sector to be granted a #ertificate of 3egistration 1on @ctober 2;' 25552 by the Insurance 3egulatory and De!elopment Authority to transact life insurance business in India.

S$an&ar& L*<

In? s$; n$s L*;*$ &. The Standard +ife Assurance #ompany was

established in 9C24 and has considerable e"perience in global financial mar ets. The company was present in the Indian life insurance mar et from 9CFG to 9D;C when agencies were set up in =ol ata and )umbai. The company re*entered the Indian mar et in 9DD4' when an agreement was signed with HD-# to launch an insurance .oint !enture. @n April 255E' the Board of The Standard +ife Assurance #ompany recommended that it should demutualise and Standard +ife plc float on the +ondon Stoc E"change. At a Special Leneral )eeting held in )ay !oting members o!erwhelmingly !oted in fa!our of this. The #ourt of Session in Scotland appro!ed this in 8une and Standard +ife plc floated on the +ondon Stoc E"change on 95th 8uly 255E. Standard +ife In!estments is a leading asset management company' with appro"imately 7SN 2EG billion as at )arch ;9' 255C' of assets under management. The company operates in the 7=' #anada' Hong =ong' #hina' =orea' Ireland' $aris' Sydney and the 7SA to ensure it is able to form a truly global in!estment !iew. In order to meet the different needs and ris profiles of its clients' Standard +ife In!estments +imited manages a di!erse portfolio co!ering all of the ma.or 2

mar ets world*wide' which includes a range of pri!ate and public e,uities' go!ernment and company bonds' property in!estments and !arious deri!ati!e instruments

1.1 , TRUSTEE
HD-# Trustee #ompany +imited' a company incorporated under the #ompanies Act' 9D4E is the Trustee to HD-# )utual -und !ide the Trust deed dated 8une C' 2555' as amended from time to time. HD-# Trustee #ompany +td is wholly owned subsidiary of HD-#

Th B+ar& +< D*r ($+rs +< HDFC Trus$ <+%%+)*n@ ;*n n$ = rs+ns.
)r. Anil =umar Hir.ee )r. 8ames Aird )r. Shishir =. Diwan.i )r. 3an.an Sanghi )r. %. Srini!asa 3angan

(+;=anB L*;*$ & (+ns*s$s +< $h

1.2 , A)ar&s 3 A((+%a& s

CNBC , T" -0 , CRISIL Mu$ua% Fun& +< $h Y ar A)ar&s /660' !1 a)ar&s>
-. HDFC Pru& n( Fun& was the only scheme that won the #:B# * T% 9C * #3ISI+ )utual -und of the ?ear Award 255C in the M+s$ C+ns*s$ n$ Ba%an( & Fun& un& r CRISIL F CPR for the calendar year 255G 1from amongst ; schemes2. /. HDFC Cash Mana@ ; n$ Fun& , Sa?*n@s P%an was the only scheme that won the #:B# * T% 9C * #3ISI+ )utual -und of the ?ear Award 255C in the M+s$ C+ns*s$ n$ L*Au*& Fun& un& r CRISIL F CPR for the calendar year 255G 1from amongst 4 schemes2. 1. HDFC Cash Mana@ ; n$ Fun& , Sa?*n@s P%an was the only scheme that won the #:B# * T% 9C * #3ISI+ )utual -und of the ?ear Award 255C in the L*Au*& S(h ; G R $a*% Ca$ @+rB for the calendar year 255G 1from amongst 9D schemes2.

ICRA Mu$ua% Fun& A)ar&s /660' !1 a)ar&s>

-. HDFC MF M+n$h%B In(+; P%an*L+n@ T r; P%an* 3an ed a S ? n S$ar Fun& and has been awarded the G+%& A)ar& <+r HB s$ P r<+r;an( H in the category of HO= n En& & Mar@*na% EAu*$BH for the three year period ending December ;9' 255G 1from amongst 2G schemes2

/. HDFC H*@h In$ r s$ Fun& , Sh+r$ T r; P%an * 3an ed a F*? S$ar Fun& indicating performance among the top 956 in the category of HO= n En& & D D$ , Sh+r$ T r;H for one year period ending December ;9' 255G 1from amongst 25 schemes2.

1. HDFC Pru& n( Fun& * 3an ed a F*? S$ar Fun& indicating performance among the top 956 in the category of HO= n En& & Ba%an( &H for the three year period ending December ;9' 255G 1from amongst 9E schemes2.

L*== r Fun& A)ar&s /660'

-. HDFC EAu*$B Fun& , Gr+)$h has been awarded the ABest Fun& +? r T n Y arsI in the IEAu*$B In&*a Ca$ @+rBI at the L*== r Fun& A)ar&s /660 1form amongst 2; schemes2. It was awarded the Best -und o!er ten years in 255E and 255G as well. 255C ma es it three in a row

PRO2U0T 7 SERVI0E O4 5240 MUTUAL 4UN2

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2.- , TYPES OF MUTUAL FUND SCHEME

!a>O= n, n& & Fun&J S(h ;
An open*ended fund or scheme is one that is a!ailable for subscription and repurchase on a continuous basis. These schemes do not ha!e a fi"ed maturity period. In!estors can con!eniently buy and sell units at :et Asset %alue 1:A%2 related prices which are declared on a daily basis. The ey feature of open*end schemes is li,uidity.

!D>C%+s , n& & Fun&J S(h ;

A close*ended fund or scheme has a stipulated maturity period e.g. 4*G years. The fund is open for subscription only during a specified period at the time of launch of the scheme. In!estors can in!est in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stoc e"changes where the units are listed. In order to pro!ide an e"it route to the in!estors' some close*ended funds gi!e an option of selling bac the units to the mutual fund through periodic repurchase at :A% related prices. SEBI 3egulations stipulate that at least one of the two e"it routes is pro!ided to the in!estor i.e. either repurchase facility or through listing on stoc e"changes. These mutual funds schemes disclose :A% generally on wee ly basis.

!(>S ($+r s= (*<*( <un&sJs(h ; s

These are the fundsBschemes which in!est in the securities of only those sectors or industries as specified in the offer documents. e.g. $harmaceuticals' Software' -ast )o!ing #onsumer Loods 1-)#L2' $etroleum stoc s' etc. The returns in these funds are dependent on the performance of the respecti!e sectorsBindustries. >hile these funds may gi!e higher returns' they are more ris y compared to di!ersified funds. In!estors need to eep a watch on the performance of those sectorsBindustries and must e"it at an appropriate time. They may also see ad!ice of an e"pert.

!&>TaC Sa?*n@ S(h ; s

These schemes offer ta" rebates to the in!estors under specific pro!isions of the Income Ta" Act' 9DE9 as the Lo!ernment offers ta" incenti!es for in!estment in specified a!enues. e.g. E,uity +in ed Sa!ings Schemes 1E+SS2. $ension schemes launched by the mutual funds also offer ta" benefits. These schemes are growth oriented and in!est pre* dominantly in e,uities. Their growth opportunities and ris s associated are li e any e,uity*oriented scheme.

2./ , IN"ESTMENT PLAN

2./.- , SYSTEMATIC IN"ESTMENT PLAN !SIP>
HD-# )- SI$ is similar to a 3ecurring Deposit. E!ery month on a specified date an amount you choose is in!ested in a mutual fund scheme of your choice. The dates currently a!ailable for SI$s are the -s$8 4$h8 -6$h8 -4$h8 /6$h an& $h /4$h of a month. ?ou(ll be ama&ed to learn about the many benefits of in!esting through HD-# )- SI$. B n <*$ B (+; A D*s(*=%*n & In? s$ r Being disciplined * It(s the ey to in!esting success. >ith the HD-# )- Systematic In!estment $lan you commit an amount of your choice 1minimum of 3s. 9555 and in multiples of 3s. 955 thereofO2 to be in!ested e!ery month in one of our schemes. Thin of each SI$ payment as laying a bric . @ne by one' you(ll see them transform into a building. ?ou(ll see your in!estments accrue month after month. It(s as simple as gi!ing at least E postdated monthly che,ues to us for a fi"ed amount in a scheme of your choice. It(s the perfect solution for irregular in!estors. O)inimum amounts may differ for each Scheme. $lease refer to SI$ Enrolment -orm for details. B n <*$ / R a(h Y+ur F*nan(*a% G+a% Imagine you want to buy a car a year from now' but you don(t now where the down*payment will come from. HD-# )- SI$ is a perfect tool for people who ha!e a specific' future financial re,uirement. By in!esting an amount of your choice e!ery month' you can plan for and meet financial goals' li e funds for a child(s education' a marriage in the family or a comfortable postretirement life. The table below illustrates how a little e!ery month can go a long way.
M+n$h%B Sa?*n@s , #ha$ B+ur sa?*n@s ;aB @ n ra$ Sa?*n@s = r ;+n$h Total amount in!ested 3ate of return !<+r -4 B ars> 13s. in +acs2 E.56 C.56 95.56 1rupees in lacs' 94 years later2O 4666 D.5 9F.E 9G.F 25.D 2666 G.2 99.G 9;.D 9E.G 1666 4.F C.C 95.F 92.4 /666 ;.E 4.C G.5 C.; -666 9.C 2.D ;.4 F.2

O)onthly instalments' compounded monthly' for a 94*year period.

D*s(%a*; r' The illustration abo!e is merely indicati!e in nature and should not be construed as in!estment ad!ice. It does not in any manner imply or suggest performance of any HD-# )utual -und Scheme1s2. $lease read 3is -actors. B n <*$ 1 TaE A&?an$a@ +< Ru=

C+s$ A? ra@*n@

)ost in!estors want to buy stoc s when the prices are low and sell them when prices are high. But timing the mar et is timeconsuming and ris y. A more successful in!estment strategy is to adopt the method called 3upee #ost A!eraging. To illustrate this we(ll compare in!esting the identical amounts through a SI$ and in one lump sum. Imagine Suresh in!ests 3s. 9555 e!ery month in an e,uity mutual fund scheme starting in 8anuary. His friend' 3a.esh' in!ests 3s. 92555 in one lump sum in the same scheme. The following table illustrate how their respecti!e in!estments would ha!e performed from 8an to Dec/
Sur shKs In? s$; n$ M+n$h Jan,62 F D,62 Mar,62 A=r,62 MaB,62 Jun,62 Ju%,62 Au@,62 S =,62 O($,62 N+?,62 D (,62 :A% D.;F4 D.;DD C.92; C.G45 C.592 C.D24 D.952 C.;95 G.4EC E.FE2 E.D;9 G.E55 Amount 9555 9555 9555 9555 9555 9555 9555 9555 9555 9555 9555 9555 7nits 95G.55D9 95E.;DF; 92;.95G2 99F.2C4G 92F.C92C 992.5FFC 95D.CEE5 925.;;ED 9;2.9;4; 94F.G45D 9FF.2GD; 9;9.4GCD RaL shKs In? s$; n$ Amount 92555 7nits 92CF.95D9

O:A% as on the 95th e!ery month. These are assumed :A%s in a !olatile mar et

D*s(%a*; r' The illustration abo!e is merely indicati!e in nature and should not be construed
2

as in!estment ad!ice. It does not in any manner imply or suggest performance of any HD-# )utual -und Scheme1s2. 3upee #ost A!eraging neither ensures you profits nor protects you from ma ing a loss in declining mar ets. $lease read 3is -actors. As seen in the table' by in!esting through SI$' you end up buying more units when the price is low and fewer units when the price is high. Howe!er' o!er a period of time these mar et fluctuations are generally a!eraged. And the a!erage cost of your in!estment is often reduced.

At the end of the 92 months' Suresh has more units than 3a.esh' e!en though they in!ested the same amount. That(s because the a!erage cost of Suresh(s units is much lower than that of 3a.esh. 3a.esh made only one in!estment and that too when the per*unit price was high. Suresh(s a!erage unit price P 92555B9FC5.E592 P 3s. C.954 3a.esh(s a!erage unit price P 3s. D.;F4

B n <*$ 2 Gr+) Y+ur In? s$; n$ #*$h C+;=+un& & B n <*$s It is far better to in!est a small amount of money regularly' rather than sa!e up to ma e one large in!estment. This is because while you are sa!ing the lump sum' your sa!ings may not earn much interest. >ith HD-# )- SI$' each amount you in!est grows through compounding benefits as well. That is' the interest earned on your in!estment also earns interest. The following e"ample illustrates this. Imagine :eha is 25 years old when she starts wor ing. E!ery month she sa!es and in!ests 3s. 4'555 till she is 24 years old. The total in!estment made by her o!er 4 years is 3s. ; la hs.Ar.un also starts wor ing when he is 25 years old. But he doesn(t in!est monthly. He gets a large bonus of 3s. ; la hs at 24 and decides to in!est the entire amount. Both of them decide not to withdraw these in!estments till they turn 45. At 45' :eha(s In!estments ha!e grown to 3s. FE'EC'2G;O whereas Ar.un(s in!estments ha!e grown to 3s. 2

;E'9G'5CFO. :eha(s small contributions to a SI$ and her decision to start in!esting earlier than Ar.un ha!e made her wealthier by o!er 3s. 95 la hs. O-igures based on 956 p.a. interest compounded monthly. D*s(%a*; r' TheThe illustration abo!e is merely indicati!e in nature and should not be construed as in!estment ad!ice. It does not in any manner imply or suggest performance of any HD-# )utual -und Scheme1s2. $lease read 3is -actors. B n <*$ 4 D+ A%% Th*s E<<+r$% ss%B In!esting with HD-# )- SI$ is easy. Simply gi!e us post*dated che,ues or opt for an Auto Debit from you ban account for an amount of your choice 1minimum of 3s. 9555 and in multiples of 3s. 955 thereofO2 and we(ll in!est the money e!ery month in a fund of your choice. The plans are completely fle"ible. ?ou can in!est for a minimum of si" months' or for as long as you want. ?ou can also decide to in!est ,uarterly and will need to in!est for a minimum of two ,uarters.

2././ , SYSTEMATIC TRANSFER PLAN !STP>

ST$ refers to Systematic Transfer $lan where in an in!estor in!ests a lump sum amount in one scheme and regularly transfers 1i.e. switches2 a pre*defined amount into another scheme. E!ery month on a specified date an amount you choose is transfered from one mutual fund scheme to another of your choice. #urrently' -i"ed Systematic Transfer $lan 1-ST$2 * )onthly Inter!al and #apital Appreciation Systematic Transfer $lan 1#AST$2 * )onthly Inter!al facility is a!ailable to the 7nit holders on -s$8 4$h8 -6$h8 -4$h8 /6$h an& /4$h +< a ;+n$h and -ST$ * Muarterly Inter!al and #AST$ * Muarterly Inter!al facility is a!ailable to the 7nit holders on -s$8 4$h8 -6$h8 -4$h8 /6$h an& /4$h +< $h <*rs$ ;+n$h of each ,uarter.

The En$rB L+a& S$ru($ur for the transferee schemes * HD-# Lrowth -und' HD-# E,uity -und' HD-# Top 255 -und' HD-# #apital Builder -und' HD-# #ore Q Satellite -und' HD-# $remier )ulti*#ap -und' HD-# Balanced -und' HD-# $rudence -und' HD-# +ong Term Ad!antage -und and HD-# Ta"Sa!er will be as follows/ The EC*$ L+a& S$ru($ur is as follows/ -or Transferee Schemes / HD-# +ong Term Ad!antage -und and HD-# Ta"Sa!er * :il -or Transferee Schemes / HD-# Lrowth -und' HD-# E,uity -und' HD-# Top 255 -und' HD-# #apital Builder -und' HD-# #ore Q Satellite -und' HD-# $remier )ulti*#ap -und' HD-# Balanced -und and HD-# $rudence -und. In respect of each in!estment through ST$ less than 3s. 4 crore in !alue' an E"it +oad of 9.246 is payable if units are redeemed B switched*out on or before 2 years from the date of allotment. In respect of each in!estment through ST$ e,ual to or greater than 3s. 4 crore in !alue' no E"it +oad is payable. Thus' this facility offers the benefits similar to those of an SI$ and is suitable for in!estors who intend to in!est systematically and currently ha!e funds for in!estments.

2.1 , PRODUCTS OF MUTUAL FUND

E7UITYJ GRO#TH FUND

CHILDRENKS GIFT FUND

LI7UID FUND

DEBTJ INCOME FUND

E7UITYJ GRO#TH FUND

HDFC Gr+)$h Fun& HDFC T+= /66 Fun&

DEBTJINCOME FUND
HDFC MF M+n$h%B In(+; P%an , Sh+r$ T r; P%an HDFC Mu%$*=% Y* %& Fun&

HDFC C+r an& Sa$ %%*$ Fun& HDFC In(+; Fun& HDFC In& C Fun& , S ns C P%an HDFC Sh+r$ T r; P%an HDFC In& C Fun& , S ns C P%us P%an HDFC G*%$ Fun& , Sh+r$ T r; P%an HDFC Ba%an( & Fun& HDFC L+n@ T r; A&?an$a@ Fun& !ELSS> HDFC L+n@ T r; EAu*$B Fun& HDFC In<ras$ru($ur Fun& HDFC Ca=*$a% Bu*%& r Fun& HDFC Pr ;* r Mu%$*,Ca= HDFC In& C Fun& , N*<$B P%an HDFC ArD*$ra@ Fun& HDFC EAu*$B Fun& HDFC Pru& n( Fun& HDFC TaCSa? r !ELSS> HDFC M*&,Ca= O==+r$un*$* s Fun& HDFC MF M+n$h%B In(+; P%an , L+n@ T r; P%an HDFC Mu%$*=% Y* %& Fun& , P%an /664 HDFC H*@h In$ r s$ Fun& HDFC H*@h In$ r s$ Fun& , Sh+r$ $ r; P%an HDFC G*%$ Fun& , L+n@ T r; P%an HDFC F%+a$*n@ Ra$ In(+; Fun& , L+n@ T r; P%an HDFC F%+a$*n@ Ra$ In(+; Fun& ,Sh+r$ T r; P%an HDFC Cash Mana@ ; n$ Fun& , Sa?*n@s P%us P%an

CHILDRENKS GIFT FUND

HDFC Ch*%&r nIs G*<$ Fun& , In? s$; n$ P%an HDFC Ch*%&r nIs G*<$ Fun& , Sa?*n@s P%an

LI7UID FUND
HDFC L*Au*& Fun& HDFC L*Au*& Fun& Pr ;*u; P%an HDFC L*Au*& Fun& Pr ;*u; P%us P%an HDFC Cash Mana@ ; n$ Fun& G Ca%% HDFC Cash Mana@ ; n$ Fun& , Sa?*n@s P%an

SOME POPULAR FUNDS ARE EMPLAIN HERE

2

HDFC Gr+)$h Fun&

HD-# Lrowth fund' an open*ended growth scheme' applies an in!estment approach based on a set of well established but fle"ible principles that emphasi&e the concept of sustainable economic earnings cash return on in!estment. The ob.ecti!e is to identify Hbusiness with superior growth prospects nd good management at a reasonable priceI. The fi!e basic principles that ser!e the foundation for this approach are as follows/ -ocus on the long term In!estment confers proportionate ownership of the business )aintain a margin safety )aintain a balanced outloo on the mar et Discipline approach to selling.

The in!estment philosophy rests on a two*pronged approach. E5*C56 of the portfolio will aim to stay in!ested for most of the time in large cap stoc s that satisfy the abo!e in!estment criteria. This allocation to large cap stoc s also ensures greater li,uidity in the portfolio. 25*F56 of the portfolio will be in!ested in companies of scale that are either large mar et share holder

Bas*( S(h ; In<+r;a$*+n8

:ature of Scheme Inception Date @ptionB$lan P%an na; D*?*& n$& =%an Gr+)$h =%an @pen Ended Lrowth Scheme September 99' 2555 Di!idend $lan' Lrowth $lan. The Di!idend $lan offers NA" Da$ $ayout and 3ein!estmentNA" ?a%u Di!idend -acility. 9C Aug 255C 2D.52G5 9C Aug 255C 4C.D;G5

Th ass $ a%%+(a$*+n un& r $h S(h ; )*%% D as <+%%+)s /

Sr.n+ / TB= +< Ins$ru; n$s E,uity Q E,uity related instruments Debt Securities' )oney )ar et instruments Q #ash 1including money at call2 N+r;a% A%%+(a$*+n !N +< N $ Ass $> C5*955 55*25 N+r;a% A%%+(a$*+n !N +< N $ Ass $> 55 55 R*sE Pr+<*% )edium to high +ow to medium

HDFC Gr+)$h

!NA" as a$ ?a%ua$*+n &a$ 8 Rs. R $urns

41.25/ 2

Fun& Da$ Mar(h 168 /665 D ( ;D r /08 /665 Jun /98 /665 Jun 168 /664 Jun 168 /661 Jun 168 -990 S =$ ;D r --8 /666

P r un*$> P r*+& +ast F4C days +ast Si" months 19C4 days2 +ast 9 ?ear 1;EG days2 +ast ; ?ears 195DE days2 +ast 4 ?ears 19C2G days2 +ast 95 ?ears 1;E4; days2 Since Inception 12CFD days2

NA" F4.FE9 GD.EEG5 4F.ED4 24.FDD 95.C2D :.A 95.555

R $urns!N> OO P 9;.C9OO *;2.CCO *2.22OO 2G.DGOO ;G.4COO :.A. 2;.DEOO

B n(h;arE R $urns!N>Q 2.;GOO *;;.;CO *C.5GOO 2;.29OO ;5.9OO 94.24OO 9F.FFOO

O Absolute 3eturns OO #ompounded Annualised 3eturns R SE:SES T Due to an o!er all sharp rise in the stoc prices U $ast performance may or may not be sustained in the future

SIP R $urns
SIP In? s$; n$s T+$a% A;+un$ In? s$ & !Rs.> MarE $ "a%u as +n Jun 168 /660 R $urns !Annua%*s &>RN B n(h;arE R $urns
# SENSEX

S*n( In( =$*+n DF'555.55 ;;C'EC5.EF ;9.CF6 22.GG6

4 Y ar E5'555.55 994'G44.;D 2E.EF6 25.EF6

1 Y ar ;E'555.55 F;'GFC.4C 9;.956 E.GG6

- Y ar 92'555.55 D'C4G.;E *;9.FF6 *;E.946

Benchmar * BSE Sense" Disclaimer/ The abo!e in!estment simulation is for illustrati!e purposes only and should not be construed as a promise on minimum returns and safeguard of capital. The A)# B )utual -und is not guaranteeing or promising or forecasting any returns. SI$ does not assure a profit or guarantee protection against a loss in a declining mar et. $lease refer SI$ Enrolment -orm or contact nearest IS# for SI$ +oad Structure

HDFC TOP,/66 FUND

In? s$; n$ ODL ($*?
The in!estment ob.ecti!e is to generate long term capital appreciation from a portfolio of e,uity and e,uity lin ed instruments. The in!estment portfolio for e,uity and e,uity lin ed instruments will be primarily drawn from the companies in the BSE 255 Inde". -urther' the Scheme may also in!est in listed companies that would ,ualify to be in the top 255 by mar et capitali&ation on the BSE e!en though they may not be listed on the BSE This includes participation in large I$@s where in the mar et capitali&ation of the company based on issue price would ma e the company a part of the top 255 companies listed on the BSE based on mar et capitali&ation Bas*( S(h ; In<+r;a$*+n Na$ur +< S(h ; In( =$*+n Da$ O=$*+nJP%an

O= n En& & Gr+)$h S(h ; @ctober 99' 9DDE Di!idend $lan'Lrowth $lan. The Di!idend $lan offers Di!idend $ayout and 3ein!estment -acility. NA" Da$ 9C Aug 255C 9C Aug 255C NA" A;+un$ ;C.2D 92D.4E

P%an Na; D*?*& n& P%an Gr+)$h P%an In? s$; n$ Pa$$ rn

The Scheme may also in!est upto 246 of net assets of the Scheme in deri!ati!es such as -utures Q @ptions and such other deri!ati!e 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 in!est a part of its corpus' not e"ceeding F56 of its net assets' in o!erseas mar ets in Llobal Depository 3eceipts 1LD3s2' AD3s' o!erseas e,uity' bonds and mutual funds and such other instruments as may be allowed under the 3egulations from time to time.

R $urns
HDFC T+= /66 Fun& Da$ Mar(h 168 /665 D ( ;D r /08 /665 Jun /98 /665 Jun 168 /664 Jun 168 /661 Jun 168 -990 O($+D r --8 -99. !NA" as a$ ?a%ua$*+n &a$ 8 Rs. P r un*$> $eriod :A% +ast F4C days +ast Si" months 19C4 days2 +ast 9 ?ear 1;EG days2 +ast ; ?ears 195DE days2 +ast 4 ?ears 19C2G days2 +ast 95 ?ears 1;E4; days2 Since Inception 1F2C5 days2 S*n( In( =$*+n 9F9'555.55 C;4'4;4.F4 2G.C46 9C.;26 95F.45F 9EG.CCC5 925.;F 4G.;F; 2;.;4C 92.GFD 95.555 --4.2/2 3eturns162 NN U C.2FOO *;9.24O *F.5EOO 2E.2;OO ;G.EOO 2G.92OO 24.;OO Benchmar 3eturns162R F.F4OO *;G.4;O *C.C4OO 29.2OO 2D.F;OO 9G.44OO 94.9COO

SIP R $urns
SIP In? s$; n$s T+$a% A;+un$ In? s$ & !Rs.> MarE $ "a%u as +n Jun 168 /660 R $urns !Annua%*s &>RN B n(h;arE R $urns B n(h;arE , BSE /66 Disclaimer/ The abo!e in!estment simulation is for illustrati!e purposes only and should not be construed as a promise on minimum returns and safeguard of capital. The A)# B )utual -und is not guaranteeing or promising or forecasting any returns. SI$ does not assure a profit or guarantee protection against a loss in a declining mar et. $lease refer SI$ Enrolment -orm or contact nearest IS# for SI$ +oad Structure -6 Y ar 925'555.5 5 4C5'92D.5 F 2D.E46 25.246 4 Y ar E5'555.55 99;';G4.5 2 24.GG6 9C.D56 1 Y ar ;E'555.5 5 F9'EE9.2 D D.G;6 4.C26 - Y ar 92'555.55 D'CF;.59 *;9.EF6 *;C.F56

HDFC G E7UITY FUND

HD-# E,uity -und is an open*ended growth scheme' which aims to generate long* term capital appreciation. The scheme maintains a focused portfolio predominantly of large cap stoc s' through there is controlled e"posure to mid caps. The schemes howe!er always remain di!ersified across sectors. )oreo!er' the sectoral allocation is done eeping in mind to di!ersify across sectors wea ly co*related to each other to further reduce ris . The underlying theme while managing the scheme is to in!est in businesses that are sustainable and for good ,uality. Bas*( S(h ; In<+r;a$*+n Na$ur +< S(h ; In( =$*+n Da$ O=$*+nJP%an O= n En& & Gr+)$h S(h ; 8anuary 59' 9DD4 Di!idend $lan'Lrowth $lan. The Di!idend $lan offers Di!idend $ayout and 3ein!estment -acility. NA" Da$ 9C Aug 255C 9C Aug 255C NA" A;+un$ ;E.9E;5 94E.GEE5

P%an Na; D*?*& n& P%an Gr+)$h P%an

In? s$; n$ S$ra$ @B'

In order to pro!ide long term capital appreciation' the Scheme will in!est predominantly in growth companies. #ompanies selected under this portfolio would as far as practicable consist of medium to large si&ed companies which/ are li ely achie!e abo!e a!erage growth than the industry0

en.oy distinct competiti!e ad!antages' and ha!e superior financial strengths. The aim will be to build a portfolio' which represents a cross*section of the strong growth companies in the pre!ailing mar et. In order to reduce the ris of !olatility' the Scheme will di!ersify across ma.or industries and economic sectors

In? s$; n$ Pa$$ rn

The asset allocation under the Scheme will be as follows / 2

Sr.N+. /

Ass $ TB= E,uities and E,uity 3elated Instruments Debt Q )oney )ar et Instruments

!N +< P+r$<+%*+> C5 * 955 5 * 25

R*sE Pr+<*% )edium to High +ow to )edium

In!estment in Securitised debt' if underta en' would not e"ceed 256 of the net assets of the scheme. The Scheme may also in!est upto 246 of net assets of the Scheme in deri!ati!es such as -utures Q @ptions and such other deri!ati!e 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 3egulations. The Scheme may also in!est a part of its corpus' not e"ceeding F56 of its net assets' in o!erseas mar ets in Llobal Depository 3eceipts 1LD3s2' AD3s' o!erseas e,uity' bonds and mutual funds and such other instruments as may be allowed under the 3egulations from time to time. Also refer to the Section on $olicy on off*shore In!estments by the Scheme1s2. If the in!estment in e,uities and related instruments falls below G56 of the portfolio of the Scheme at any point in time' it would be endea!oured to re!iew and rebalance the composition. :ot with standing anything stated abo!e' sub.ect to the regulations' the asset allocation pattern indicated abo!e may change from time to time' eeping in !iew mar et conditions' mar et opportunities' applicable regulations and political and economic factors. It may be clearly understood that the percentages stated abo!e are only indicati!e and are not absolute and that they can !ary substantially depending upon the perception of the A)#' the intention being at all times to see to protect the :A% of the scheme. Such changes will be for short term and defensi!e considerations. $ro!ided further and sub.ect to the abo!e' any change in the asset allocation affecting the in!estment profile of the Scheme and amounting to a change in the -undamental Attributes of the Scheme shall be effected in accordance with sub*regulation 194A2 of regulation 9C of SEBI regulations.

R $urns
HDFC EAu*$B Fun& !NA" as a$ ?a%ua$*+n &a$ 8 Rs. P r un*$> -21.-5-

Da$ Mar(h 168 /665 D ( ;D r /08 /665 Jun /98 /665 Jun 168 /664 Jun 168 /661 Jun 168 -990 JanuarB -8 -994

P r*+& +ast F4C days +ast Si" months 19C4 days2 +ast 9 ?ear 1;EG days2 +ast ; ?ears 195DE days2 +ast 4 ?ears 19C2G days2 +ast 95 ?ears 1;E4; days2 Since Inception 1FD2D days2

NA" 9F2.E52 29D.C4G5 9E4.;9; G;.GEC 2D.DE5 G.2C5 95.555

R $urns!N> OO P 5.;2OO *;F.CCO *9;.;;OO 2F.G9OO ;E.ECOO ;F.EGOO 29.GCOO

B n(h;arE R $urns!N>Q 9.FGOO *;D.;CO *99.4DOO 9C.CGOO 2D.5;OO 9G.G4OO D.22OO

O Absolute 3eturns OO #ompounded Annualised 3eturns R SQ$ #:S 455 U $ast performance may or may not be sustained in the future

SIP R $urns
SIP In? s$; n$s T+$a% A;+un$ In? s$ & !Rs.> MarE $ "a%u as +n Jun 168 /660 R $urns !Annua%*s &>RN B n(h;arE R $urns S*n( In( =$*+n 9E2'555.55 9'FDF'G4;.D2 2D.4;6 9E.9C6 -6 Y ar 925'555.5 5 EFE'FD5.E 4 ;9.EE6 9D.GG6 4 Y ar E5'555.55 95G'D5F.9 2 2;.G96 9G.4E6 1 Y ar ;E'555.5 5 ;C'DDC.E G 4.2G6 ;.246 - Y ar 92'555.55 D'F5C.4G *;G.426 *F5.2G6

D*s(%a*; r'
The abo!e in!estment simulation is for illustrati!e purposes only and should not be construed as a promise on minimum returns and safeguard of capital. The A)# B )utual -und is not guaranteeing or promising or forecasting any returns. SI$ does not assure a profit or guarantee protection against a loss in a declining mar et. $lease refer SI$ Enrolment -orm or contact nearest IS# for SI$ +oad Structure.

HDFC In<ras$ru($ur Fun&

In? s$; n$ ODL ($*?

To see long*term capital appreciation by in!esting predominantly in e,uity and e,uity related securities of companies engaged in or e"pected to benefit from growth and de!elopment of infrastructure.

Bas*( S(h ; In<+r;a$*+n

Na$ur +< S(h ; C%+s En& & EAu*$B S(h ; )*$h a ;a$ur*$B = r*+& +< 1 B ars <r+; $h &a$ +< a%%+$; n$ )*$h au$+;a$*( (+n? rs*+n *n$+ an += n, n& & s(h ; u=+n ;a$ur*$B +< $h S(h ; . Mar(h -68 /660 D*?*& n& O=$*+n8 Gr+)$h O=$*+n. D*?*& n& O=$*+n (urr n$%B +<< rs )*$h =aB+u$ <a(*%*$B +n%B NA" Da$ 9C Aug 255C 9C Aug 255C NA" A;+un$ C.;C;5 C.;C;5

In( =$*+n Da$ O=$*+nJP%an

P%an Na; Gr+)$h O=$*+n D*?*& n& O=$*+n

In? s$; n$ Pa$$ rn'

The asset allocation under the respecti!e $lans will be as follows/ TB= +< Ins$ru; n$s M*n*;u; MaC*;u; A%%+(a$*+n !N +< A%%+(a$*+n!N +< N $ Ass $s> N $ Ass $s> EAu*$B an& EAu*$B R %a$ & E46 9556 Ins$ru; n$s +< *n<ras$ru($ur J *n<ras$ru($ur r %a$ & (+;=an* s EAu*$B an& EAu*$B R %a$ & 56 ;46 Ins$ru; n$s +< (+;=an* s +$h r $han ; n$*+n & aD+? D D$ S (ur*$* s an& M+n B 56 ;46 MarE $ Ins$ru; n$sR an& F*C & In(+; D r*?a$*? S R*sE Pr+<*% +< $h Ins$ru; n$ )edium to High

)edium to High +ow to )edium

O In!estments in securitised debt shall not normally e"ceed ;56 of the net assets of the Scheme. The Scheme may see in!estment opportunity in -oreign Securities 1ma". ;46 of net assets2.

The Scheme may ta e deri!ati!es position for hedging' portfolio balancing or to underta e any other strategy as permitted under SEBI 3egulations from time to time 1ma". 256 of the net assets2 based on the opportunities a!ailable sub.ect to SEBI 3egulations.

R $urns
HDFC In<ras$ru($ur Fun& Da$ Mar(h 168 /665 D ( ;D r /08 /665 Jun /98 /665 Jun 168 /664 Jun 168 /661 Jun 168 -990 Mar(h -68 /660 !NA" as a$ ?a%ua$*+n &a$ 8 Rs. P r un*$> $eriod :A% +ast F4C days +ast Si" months 19C4 days2 +ast 9 ?ear 1;EG days2 +ast ; ?ears 195DE days2 +ast 4 ?ears 19C2G days2 +ast 95 ?ears 1;E4; days2 Since Inception 1992 days2 :.A :.A :.A :.A :.A :.A 95.555 5.20 3eturns162 N NU :.A. :.A. :.A. :.A. :.A. :.A. *24.2O Benchmar 3eturns162R 9.FGOO *;D.;CO *99.4DOO 9C.CGOO 2D.5;OO 9G.G4OO *9C.F4O

O Absolute 3eturns OO #ompounded Annualised 3eturns R SQ$ #:S 455 T Due to an o!er all sharp rise in the stoc prices U $ast performance may or may not be sustained in the future

HDFC Pru& n( Fun&

In? s$; n$ ODL ($*?
The in!estment ob.ecti!e of the Scheme is to pro!ide periodic returns and capital appreciation o!er a long period of time' from a .udicious mi" of e,uity and debt in!estments' with the aim to pre!entB minimise any capital erosion.

Bas*( S(h ; In<+r;a$*+n

Na$ur +< S(h ; In( =$*+n Da$ O=$*+nJP%an O= n En& & Ba%an( & S(h ; -ebruary 59' 9DDF Di!idend $lan'Lrowth $lan. The Di!idend $lan offers Di!idend $ayout and 3ein!estment -acility.

R $urns
HDFC Pru& n( Fun& Da$ Mar(h 168 /665 D ( ;D r /08 /665 Jun /98 /665 Jun 168 /664 Jun 168 /661 Jun 168 -990 F DruarB -8 -992 O Absolute 3eturns !NA" as a$ ?a%ua$*+n &a$ 8 Rs. P r un*$> $eriod :A% +ast F4C days +ast 9C4 days +ast 9 ?ear 1;EG days2 +ast ; ?ears 195DE days2 +ast 4 ?ears 19C2G days2 +ast 95 ?ears 1;E4; days2 Since Inception 142E; days2 995.9;2 9E5.ECG5 92F.G9E EF.EC2 9D.2;5 99.FC5 95.555 --/..50 3eturns162 NN U 9.CFOO *2D.CCO *D.EOO 25.;OO F2.;GOO 2E.COO 25.F9OO Benchmar 3eturns162R E.59OO *22.GO *9.;;OO 94.;COO 9D.;9OO :.A. :.A.

OO #ompounded Annualised 3eturns Due to an o!er all sharp rise in the stoc prices

R #3ISI+ Balanced -und Inde" T

U $ast performance may or may not be sustained in the future NN Ad.usted for the di!idends declared under the scheme prior to its splitting into the Di!idend and Lrowth $lan

In? s$; n$ S$ra$ @B

As outlined abo!e' the in!estments in the Scheme will comprise both debt and e,uities. The -und would in!est in Debt instruments such as Lo!ernment securities' money mar et instruments' securitised debts' corporate debentures and bonds' preference shares' ,uasi Lo!ernment bonds' and in e,uity shares. In the long term' the mi" between debt instruments and e,uity instruments is targeted between E5/F5 and F5/E5 respecti!ely. The e"act mi" will be a function of interest rates' e,uity !aluations' reser!es position' ris ta ing capacity of the portfolio without compromising the consistency of di!idend pay out 1in the case of Di!idend $lan2' need for capital preser!ation and the need to generate capital appreciation. -und )anager Mr. Prashan$ Ja*n Mr. Anan& La&&ha * Dedicated -und )anager * -oreign Securities

In? s$; n$ Pa$$ rn

The following table pro!ides the asset allocation of the SchemeAs portfolio. The asset allocation under the respecti!e $lans will be as follows / Sr.N+. TB= +< Ins$ru; n$s / E,uities Q E,uity related instruments Debt Securities' )oney )ar et instruments1including cashBcall money2 N+r;a% A%%+(a$*+n !N +< N $ Ass $s> F5 * G46 24 * E56 R*sE Pr+<*% )edium to High +ow to )edium

1In!estment in Securitised debt' if underta en'would not e"ceed 956 of the net assets of the Scheme.2

HDFC Ca=*$a% Bu*%& r Fun&

HD-# #apital Builder -und' an open*ended growth scheme' aims to in!est in strong companies at prices that below fair !alue in the opinion of the fund managers. The in!estment approach is based on the philosophy that !alue may be unco!ered only where the crowd has not disco!ered it yet. In the opinion of the fund managers such !alue e"ists in good ,uality well managed Hneglected Hstoc s. The current neglect in these companies by the broad mar et participants can be due to !arious factors such as difficult recent mar et conditions' ma.or restructuring charges' %3S e"penses 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 relati!ely illi,uid. >hile assuming such relati!e ris ad.usted li,uidity ris the fund managers propose to capitali&e on e"pected pic up reported earning as result of strong growth prospects in the future. This e!entually translates in to more li,uidity depending on the success of this strategy. Such opportunities are a!ailable in large companies as well as small companies. >hile there is no criteria for stoc selection based on mar et capitali&ation the endea!or is to eep a balance of companies in the portfolio between big and small companies' on one category o!erwhelming the other
Bas*( S(h ; In<+r;a$*+n Na$ur +< S(h ; In( =$*+n Da$ O=$*+nJP%an P%an Na; D*?*& n& P%an Gr+)$h P%an O= n En& & Gr+)$h S(h ; -ebruary 59' 9DDF Di!idend $lan'Lrowth $lan. The Di!idend $lan offers Di!idend $ayout and 3ein!estment -acility. NA NA" A;+un$ " Da$ 9C 22.5G4 Aug 255C 9C ED.D9C Aug 2

255C

In? s$; n$ Pa$$ rn

The asset allocation under the Scheme will be as follows / Sr.N+. / Ass $ TB= E,uities and E,uity 3elated Instruments Debt Q )oney )ar et Instruments !N +< P+r$<+%*+> R*sE Pr+<*% 7pto 9556 )edium to High :ot more than 256 +ow to )edium

In!estment in Securitised debt' if underta en' would not e"ceed 256 of the net assets of the scheme. The Scheme may also in!est upto 246 of net assets of the Scheme in deri!ati!es such as -utures Q @ptions and such other deri!ati!e 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 and guidelines. The Scheme may also in!est a part of its corpus' not e"ceeding F56 of its net assets' in o!erseas mar ets in Llobal Depository 3eceipts 1LD3s2' AD3s' o!erseas e,uity' bonds and mutual funds and such other instruments as may be allowed under the 3egulations from time to time. Also refer to the Section on $olicy on off*shore In!estments by the Scheme1s2. SIP In? s$; n$s T+$a% A;+un$ In? s$ & !Rs.> MarE $ "a%u as +n Jun 168 /660 R $urns !Annua%*s &>RN B n(h;arE R $urns S*n( In( =$*+n 9G;'555.55 CD5'9;9.F2 25.496 94.5F6

SIP R $urns
-6 Y ar 925'555.5 5 FE;'G42.5 C 24.496 9D.GG6 4 Y ar E5'555.55 95;';FD.F 5 29.D26 9G.4E6 1 Y ar ;E'555.5 5 ;G'4;D.; F 2.GF6 ;.246 - Y ar 92'555.55 D'2F2.9E *;D.G;6 *F5.2G6

Pas$ = r<+r;an( ;aB +r ;aB n+$ D sus$a*n & *n $h <u$ur O +oad is not ta en into consideration and the 3eturns are of Lrowth $lan B @ption. In!estors are ad!ised to refer to the 3elati!e $erformance table furnished as abo!e for non*SI$ returns 2

R $urns
HDFC Ca=*$a% Bu*%& r Fun& Da$ Mar(h 168 /665 D ( ;D r /08 /665 Jun /98 /665 Jun 168 /664 Jun 168 /661 Jun 168 -990 F DruarB -8 -992 O Absolute 3eturns R SQ$ #:S 455 U $ast performance may or may not be sustained in the future !NA" as a$ ?a%ua$*+n &a$ 8 Rs. P r un*$> P r*+& NA" +ast F4C days +ast Si" months 19C4 days2 +ast 9 ?ear 1;EG days2 +ast ; ?ears 195DE days2 +ast 4 ?ears 19C2G days2 +ast 95 ?ears 1;E4; days2 Since Inception 142E; days2 E5.; 954.92;5 G;.2G ;G.FGF 9;.99G G.FC5 95.555 .2.-.9 R $urns!N> O OP 4.5COO *;C.DEO *92.;EOO 9D.E2OO ;G.;2OO 2;.DEOO 9;.GEOO B n(h;arE R $urns!N>Q 9.FGOO *;D.;CO *99.4DOO 9C.CGOO 2D.5;OO 9G.G4OO G.D4OO

OO #ompounded Annualised 3eturns

B n(h;arE , S 3 P CNM 466

Disclaimer/ The abo!e in!estment simulation is for illustrati!e purposes only and should not be construed as a promise on minimum returns and safeguard of capital. The A)# B )utual -und is not guaranteeing or promising or forecasting any returns. SI$ does not assure a profit or guarantee protection against a loss in a declining mar et. $lease refer SI$ Enrolment -orm or contact nearest IS# for SI$ +oad Structure.

PART O4 MY SUMMER TRAINING

As =ar$ +< ;B un& rs$u&B $ra*n*n@

-or the purpose of fulfillment of masters degree in business administration i had underta en my summer training at HDFC,;u$ua% <un& at 3our ela branch for a period of F4 days. In course of the training i had an opportunity to get proper wor ing nowledge about the internal wor ings of )utual funds dept.

The single most important factor that dri!es HD-# )utual -und is its belief to gi!e the in!estor the chance to profitably in!est in the financial mar et' without constantly worrying about the mar et swings.

I had chosen the HDFC,;u$ua% <un& as it is one of the most highly reputed mutual fund all o!er the I:DIA and offers under study training to students during summer. I had the .ob of con!incing in!estors to choose HD-# mutual funds o!er others. -or this purpose I also maintained a database of all the in!estors who had been approached.

)oney is a !aluable asset and it is ob!ious that people thin many times before in!esting their money into any ind of funds. They fre,uently as ,uestions about the time period' interest rates' current status of the share mar et' etc which re,uires good running nowledge in the field. It was not !ery easy to con!ince people to ma e in!estment in the HD-# mutual funds but with the help of )r. )anmohan )ohapatra' Branch )anager' of HD-*mutual fund 3our ela branch. I accomplished my tas .

The largest amount of in!estment was made by )r. )D ABID 'an amount of 9'45'555 ' in the scheme HD-#* e,uity fund for a duration of years. @ther in!estors were
NAME -. /. 1. 2. 4. .. 5. 0. 9. -6. --. -/. -1. -2. -4. -.. -5. -0. -9. /6. /-. //. /1. /2. MD ABID SHOAIB AKHTER DEBENDRA NATH PAUL NATM UT TAMA MD ABID NISHIT HEMANI Dr NEYAT AHMED KHALID SADAT CHANDU LAL GUPTA NISHIT HEMANI MD PER#ET ALAM JUBAIR KHAN D T MOHANTY PRAKASH JHA KHALID SADAT MD NABEEL "IKRANT GUPTA RAJESH KUMAR MD ASIF MATAR KHAN BIS#AJIT RAI NARENDRA NATH PAUL HARPREET KAUR SOMA AGAR#AL In? s$; n$ $B= SIP SIP On $*; SIP ONE TIME SIP SIP SIP SIP ONE TIME SIP SIP SIP SIP On $*; SIP SIP SIP SIP SIP SIP SIP SIP SIP A;+un$ /8666 -8666 -8668666 -8666 -8468666 /8666 -8666 /8666 -8666 468666 -8666 -8666 -8666 -8666 -8668666 /8666 -8666 -8666 -8666 -8666 -8666 -8666 -8666 -8666 Scheme HD-# L3@>TH -7:D HD-# T@$ 255 -7:D HD-# EM7IT? -7:D HD-# L3@>TH -7:D HD-# EM7IT? -7:D HD-# L3@>TH -7:D HD-# L3@>TH -7:D HD-# T@$ 255 -7:D HD-# T@$ 255 -7:D HD-# EM7IT? -7D HD-# BA+A:#ED -7:D HD-# BA+A:#ED -7:D HD-# L3@>TH -7:D HD-# T@$ 255 -7:D HD-# EM7IT? -7:D HD-# L3@>TH -7:D HD-# L3@>TH -7:D HD-# L3@>TH -7:D HD-# L3@>TH -7:D HD-# T@$ 255 -7:D HD-# T@$ 255 -7:D HD-# L3@>TH -7:D HD-# BA+A:#ED -7:D HD-# EM7IT? -7D Dura$*+n 9 ?EA3 9 ?EA3 ; ?EA3 9 ?EA3 2 ?EA3 9 ?E3A 9 ?E3A 9 ?EA3 9 ?EA3 2 ?EA3 9 ?EA3 9 ?EA3 9 ?EA3 9 ?EA3 ; ?EA3 9 ?EA3 2 ?EA3 9 ?E3A 9 ?E3A 9 ?EA3 9 ?EA3 2 ?EA3 9 ?EA3 9 ?EA3

During the training period i managed to con!ince people to ma e in!estment in Hdfc )utual funds.The total amount of trasaction i pro!ided was about 3s G'55'555

MET5O2OLOGY O4 T5E STU2Y

). R/%/,RC8 */#84(4-4G9 1. %4+RC/% 4F (,#, C4--/C#I4. 3. 8904#8/%I% 4F #8/ %#+(9 &. (,#, C4--/C#I4. : ,.,-9%I%
2

..- , R s ar(h M $h+&+%+@B'

Since the study underta en by me is related to the study of mutual fund in India' the means adopted for collection of !arious facts and data were in the form of personal obser!ation' officials documents' and directly interacting with the officers concerned and also directly interacting with the e"isting customers as well as new customer formed. It was an e"ploratory research. >or is mainly emphasi&ed on the primary data. $rimary data are gathered form prescribed ,uestionnaire and by personal inter!iew and the secondary data are collected from different boo s and maga&ines.

8.* - S#u (e) #" 2ata (#!!e(ti#n

#here are two sources of data collection. #hey are;

,. *.

PRIMARY 2ATA SOUR0E SE0ON2ARY 2ATA SOUR0E

#he secondary data are those, which have already been collected by someone else thorough 5ooks, Internet, #elevision, !ournals, *aga<ines, etc. 4n the other hand primary data does not e"ist here. #he researcher has to gather primary data afresh for the specific study undertaken by him. 0rimary data has been collected here by =uestionnaire method and personal interview method is followed. 0rimary sources such as Interviews, 4bservation, and attending training and development classes. %econdary sources such as 5ooklets, *onthly !ournal, *aga<ines, 4fficial files etc.

..1 , HYPOTHESIS OF THE STUDY

-or doing the dissertation topic Hperformance of mutual fund analysis I too the hypothesis of certain groups. I di!ide the total population on the basis of their age' income' gender' occupation and status. )ale .obholders within the age group of 2F*F5. -emale .obholders within the age group of 2F*F5. )ale .obholders abo!e the age F5. -emale .obholders abo!e the age F5. Indi!idual ha!ing the income in the range of 9l h*;l h per annum. Indi!idual ha!ing the income abo!e ;l h per annum.

In @rissa i.e. rural area it is still a new concept so it will ta e some more time to really penetrate into this mar et apart from people who are H:I(s though these people are gi!en more emphasis by all the )utual funds and distribution channels. >ith the introduction of SI$(s the industry has created some options clear for retail in!estors to enter this mar et. )y sur!ey says that it the awareness le!el that is playing acting as an obstacle in the growth of )utual fund Industry in @rissa as a whole. $eople in Bhubaneswar are now opening up and interested in loo ing forward for certified in!estment planners to help them designing their in!estment portfolio. @rissa as a mar et was not that efficient few years bac ' but now with lot of multinational companies and other reputed companies coming down' the @rissa mar et is slowly pic ing up. -or mutual funds it is one of the emerging mar ets that can be trapped form its de!eloping stage and though people of rural areas prefer )oderate ris they can easily accept mutual funds. )utual fund Industry is deli!ering a splendid performance and will of course continue in coming future. But that can be only possible as the distribution channels li e =ar!y' Ba.a. finance and Ban s i.e. #iti Ban ' HD-# Ban ' I#I#I Ban )anagement #ompany. and Standard #hartered Ban along with all Asset

..2 , Da$a C+%% ($*+n 3 Da$a Ana%Bs*s

)'>

N+ +< r s=+n& n$ , /66

Ma% F ;a% , -14 , .4

)>> '> > male Respondent female )3' 6'

Nu;D r +< r s=+n& n$s A((+r&*n@ $+ a@ @r+u=s'

-0 $+ 16 U 44 16 $+ 26 U 06 26 $+ 46 U 26 46 aD+? U/4

)>> ?> 6> &> 1> > )? to 3' 3' to &' &' to '' '' ?> &> 1' '' : above

Respondent

Th sur? B *s (+n&u($ & +n a sa;=% +< /66 = +=% )h*(h *n(%u& s --6 ;a% s an& 96 < ;a% s. Th sa;=% (+n$a*ns (+nsu; rs <r+; a%% $h a@ @r+u=s s+ $ha$ an *& a% sa;=% (an D +D$a*n &.

-. In? s$; n$ A? nu s a?a*%aD% *n $h ;arE $8 $ha$ *n? s$+r ar a)ar +<:

$ostal schemes Lo!ernment securities Direct e,uity in!estment Ban -D(s )utual funds Insurance

INFERENCE' A((+r&*n@ $+ $h *n? s$+rs *n R+urE %a8 11N +< *n? s$+rs =r < r $+ & =+s*$ $h r ;+n B *n DanE FDKs. #h r as 0N +< $h *n? s$+rs )an$ $+ *n? s$ *n =+s$a% s(h ; 8 2N *n @+? rn; n$ s (ur*$B8 -4N *n? s$ *n &*r ($ Au*$B /6N +< *n? s$+rs $h B =r < r ;u$ua% <un& 3 *nsuran( 8 as $h r *n? s$; n$ h+us )h*(h *s n+$ ? rB h*@h8 Du$ a$ $h sa; $*; ;u$ua% <un& (+n( =$ *s @r+)*n@ /. M+r a$$ra($*? aD+u$ ;u$ua% <un&s:
2

3eturns )oderate ris Ta" benefits Hassle free $ast performance >ell regulated :o idea

. INFRENCE' A((+r&*n@ $+ = +=% +< R+urE %a $h B a$$ra($ )*$h =as$ = r<+r;an( +< $h (+;=anB *< (+;=anB =as$ r (+r&s *s @++& $h n $h B *n$ r s$ & $+ *n? s$. A<$ r $ha$ = +=% a$$ra($ )*$h $aC D n <*$ $h n r $urn +n *n? s$; n$

1. P r( n$a@ +< n$*r *n? s$; n$ *n(%u& s ;u$ua% <un&s:

Below 256 2

25 to 456 45 to C56 C56 abo!e

INFRENCE' BB $h*s ) (+; $+ En+) $ha$ ;+s$ +< $h = +=% us $+ @+ <+r ;u$ua% <un& as ) (an s DB $h aD+? @ra=h $ha$ 01 = +=% <r+; /66 @+ s <+r /6N $+46N *n? s$; n$ *n Mu$ua% Fun&s.

2. F+r In? s$; n$s *n Mu$ua% Fun&8 )h*(h (+;=anB *n? s$+rs =r < r:
HD-# )AB: A)3@ )$37DE:TIA+ I#I#I )3E+IA:#E )BI3+A S7:+I-E

INFERENCE' A((+r&*n@ $+ $h In? s$+rs *n R+urE %a 14N +< *n? s$+rs =r < r $+ *n? s$ *n HDFC ;u$ua% <un&8 /5N +< *n? s$+rs =r < r R %*an( ;u$ua% <un& )h r as B*r%a shar -/N an& ICICI DB -5N.Du$ +n%B 9N *n? s$+rs *n? s$ *n ABN AMRO ;u$ua% <un&. I ha? (+;=ar & $h s <*? <un& h+us D (aus $h B ar $h ;a*n (+;= $*$+rs *n R+urE %a.

4. H+) &+ *n? s$+rs ;ana@ h*s *n? s$; n$ =+r$<+%*+: Solely of my own @n ad!ise of a friend @n ad!ise of a distributorBagent @n ad!ise of your ban er @n ad!ice of mutual fund house people

INFRENCE' A((+r&*n@ $+ ;B sur? B ;+s$ n+ +< = +=% ;ana@ h*s *n? s$; n$ =+r$ <+%*+ DB +)n8 02 = +=% +u$ +< /66 ;ana@ h*s =+r$<+%*+ DB +)n an& 24 3 1. = +=% ;ana@ )*$h $h h %= +< DanE rs an& MF h+us

.. Sa?*n@sJ*n? s$; n$ a? nu s 4 B ar Da(E:

Ban -D' Sa!ings Insurance )utual funds E,uity mar et Lo!t. securities 3eal estate $ostal sa!ings' -D

INFRENCE' A((+r&*n@ $+ ;B sur? B D <+r 4 B ar ;+s$ +< $h = +=% !--1> +<

R+urE %a (*$B *n? s$ & h*s ;+n B *n *nsuran( s ($+r an& 96 = +=% +u$ +< /66 *n? s$ & *n DanE FD. Bu$ +n%B 21 = +=% +u$ +< /66 *n? s$ *n ;u$ua% <un& )h*(h )as ? rB %+)

5. A;+n@ $h hu@ nu;D r +< = +=% @+*n@ <+r ;u$ua% <un&8 *n )h*(h E*n& +< <un& $h B n+r;a%%B *n? s$:
E,uity @riented Debt @riented Balanced @riented

INFERENCE' In $h (*$B %*E R+urE %a *n D $) n $h a@ @r+u= -0,168 ./N *n? s$+r *n? s$ & *n Au*$B +r* n$ &8 an& +n%B -0N = +=% *n? s$ *n & D$ <un&. Bu$ @r+u= +< = +=% ;+r $han 46 B ar 44N *n? s$+r *n? s$ *n & D$ <un& an& +n%B /1N = +=% *n? s$ *n Au*$B <un&. I$ ; an B+un@ r = +=% a$$ra($ )*$h Au*$B <un& an& +%& ;an a$$ra($ )*$h & D$ <un&. Du$ *n Da%an( & <un& ? rB @r+u=s ar Aua%%B *n? s$

0. R*sE a== $*$ +< = +=% *n Or*ssa Pr < rr & R*sE an& R $urn
High ris high return )oderate ris moderate return +ow ris low return !H8H> !M8M> !L8L>

INFERENCE' A((+r&*n@ $+ $h sur? B8 ) (an (+n(%u& $ha$8 = +=% *n rura% ar as ;+s$%B D %* ? *n M+& ra$ r*sE8 an& ;+& ra$ r $urns. E? n ;u$ua% <un&s ha? ;+& ra$ r*sE an& $h r $urn *s Au*$ % ss $han as *$ *s *n (as +< Au*$* s. S+8 <+r $h = +=% +< Rura% ar as ;u$ua% <un&s ar $h r*@h$ E*n& +< *n? s$; n$ +=$*+n.

9. H+) s r*+us%B = +=% *n R+urE %a $h*n@ aD+u$ un& r@+*n@ a <*nan(*a% =%ann*n@ <+r $h ;:
Y s N+

INFRENCE' A((+r&*n@ $+ ;B sur? B +< R+urE %a = +=% 8 ;+s$ n+ +< = +=% ar ;+r s r*+us aD+u$ <*nan(*a% =%ann*n@

9UESTIONARE

Muestionnaire P% as <*%% u= $h Au s$*+nna*r a((+r&*n@ $+ $h Au s$*+ns asE &. !Jus$ =u$ +n a $*(E ;arE VWX )h r ? r n & &>

Na;

VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

A@

* W W W

W25*;5X ;5*F5 F5*45 45*abo!eX

S C

O((u=a$*+n

Ser!ice 1Lo!t.2 Ser!ice 1$!t.2 Business Self*employed 3etired

Or@an*Ya$*+n * D s*@na$*+n ,

VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

Annua% In(+; *

Below 9 la h 9 K ; la h ; K 4 la h Abo!e 4 la h

-. #ha$ ar $h In? s$; n$ A? nu s a?a*%aD% *n $h ;arE $8 $ha$ B+u ar a)ar +<: 2

$ostal schemes 1i.e. )ISB$$-B:S#B3.DBT.D etc.2 Lo!ernment securities Ban -D(s Direct e,uity in!estment )utual funds Insurance /. Ar B+u a)ar +< $h <a($ $ha$ s+; +< $h = r<+r;*n@ Mu$ua% <un& s(h ; s *n $h *n&us$rB ha? =+s$ & /6N Z annua%*Y & r $urns *n %as$ -6 B ars: ?es :o

1. In B+ur =+*n$ +< ?* ) )ha$ *s ;+r a$$ra($*? aD+u$ ;u$ua% <un&s: 3eturns )oderate ris Ta" benefits :o idea 2. I< B+u ha? *n? s$ & *n Mu$ua% <un&s8 )ha$ = r( n$a@ +< B+ur n$*r *n? s$; n$ *n(%u& s ;u$ua% <un&s: Below 256 25 to 456 45 to C56 C56 abo!e Hassle free $ast performance >ell regulated

4. #ha$ ) r B+ur Sa?*n@sJ*n? s$; n$ a? nu s 4 B ar Da(E: Ban -D' Sa!ings )utual funds Lo!t. securities $ostal sa!ings' -D E. N+)8 )ha$ n ) a? nu s ar *n(%u& & *n B+ur In? s$; n$ =+r$<+%*+: Lo!t. securities )utual funds 2 Insurance E,uity mar et 3eal estate

Insurance E,uity mar et 3eal estate

Deri!ati!es

5. H+) &+ B+u ;ana@ B+ur *n? s$; n$ =+r$<+%*+: Solely of my own @n ad!ise of a friend @n ad!ise of a distributorBagent @n ad!ise of your ban er @n ad!ice of mutual fund house people 0. H+) &+ B+u ra$ $h s )h*% $aE*n@ an *n? s$; n$ & (*s*+n: !Ra$ as -8/818284 a((+r&*n@ $+ =r < r n( > 3eturns +oc *in period Ta" benefits 9. Y+u D %* ? *n [ High ris ' High returns )oderate ris ' moderate returns +ow ris ' low returns -6. Ha? B+u D n ? r a==r+a(h & DB a C r$*<* & In? s$; n$ F*nan(*a% P%ann r: ?es :o 3is factors past performance

--. #+u%& B+u %*E $+ un& r@+ a <*nan(*a% =%ann*n@ C r(*s <+r B+urs %<: ?es :o

4IN2ING: RE0OMMEN2ATION: 7 0ON0LUSION

FINDINGS
In India )utual fund Industry has seen Dramatic impro!ements in Muality as well as ,uality of products and ser!ices offering o!er the past decade' but the industry has witnessed growth in the last 95 years considerably below potential. The Asset under )anagement ha!e grown from about 3s. FG5 billion in march 9DD; to 3s. 9'4F5 billion in April 255F1#AL3 of 99.F percent2 Q now it grown to 3s. 4'E25 billion till sep 255C. This has mainly achie!ed due to collection through mutual fund I$@(s that has been increasing due to the in!estors feeling that it is cheaper in its I$@ stage on account of its 3s. 95 :A%.

There has been a strong appreciation in e,uities in comparison to the debt mar et' which has shown a downward trend last year. And in turn )id*cap and di!ersified funds ha!e deli!ered the highest in comparison to other funds. As the Indian economy is showing a growing trend with LD$ more than E6 and e"pected to show C6 and Indian household sa!ing being 2F6 of the entire LD$. There is a strong growth potential of )utual fund industry in India.

In @rissa i.e. rural area it is still a new concept so it will ta e some more time to really penetrate into this mar et apart from people who are H:I(s though these people are gi!en more emphasis by all the )utual funds and distribution channels. >ith the introduction of SI$(s the industry has created some options clear for retail in!estors to enter this mar et. )y sur!ey says that it the awareness le!el that is playing acting as an obstacle in the growth of )utual fund Industry in @rissa as a whole.

S+; +< $h MaL+r F*n&*n@s

9. It is found that HD-# is a fa!orable )utual -und. 2. The basis ob.ecti!e behind in!estments are mainly long*term capital appreciation' current income Q to some e"tent ta" benefits. ;. The performance of HD-# #ore Q Satellite Q HD-# Top 255 -und is !ery good. F. It is seen that the in!estment in growth fund is !ery high. Because the scope of income and capital appreciation in the long term. 4. It is obser!ed that the dri!ing aspects of in!estments in mutual fund are safety' fund performance' Ser!ice' +i,uidity' return Q ta" benefits. E. The type of in!estment plan that most in!estor s prefer is to get principal safety at all time with low returns rather than high return with no safety. G. HD-# )utual -und does not pro!ide Jmonthly income scheme( which other mutual funds ha!e and performance is !ery appreciable. C. -und )anagers ha!e suggested HD-# prudence 'HD-# Ta"sa!er ' HD-# E,uity for in!estment ' -or the top 4. D. HD-# $rudence is performing good with comparition to the prudence fund of any other mutual fund house. 95. At this period of time when mar et condition is not so good' it is better for in!estors to in!est through Systamatic In!estment plan. >hich reduces the mar et ris .

RECOMMENDATION
HD-# )utual -und is one of the largest mutual funds and well*established fund house in the country with consistent and abo!e a!erage fund performance across categories since its incorporation on December 95'9DDD.The single most important factor that dri!es HD-# )utual -und is its belief to gi!e the in!estor the chance to profitably in!est in the financial mar et' without constantly worrying about the mar et swings.

S+; ;aL+r r (+;; n&a$*+n'

-> -und managers should continuous In!estor awareness $rograms to ma e the in!estors aware of technicalities of fund management and the return aspects. /> Agents' Ser!ice personnel must be able to gi!e correct and timely information about :A% and the return on different schemes. 1> )onthly income scheme should be introduced. 2> Scheme should be offered as per the needs and the re,uirement of the industries. 4> The regulatory norms pro!ided by the regulatory authorities li e SEBI are re,uired to be nown to all including in!estors.

CONCLUSION
The global financial mar et has transformed from Seller(s mar et to Buyer(s mar et with liberali&ation' Llobali&ations and pri!ati&ation. The Indian mutual fund mar et has also become global when foreign funds entered' they came up with probably best mar eting strategies to beat Indian giants li e BI3+A' HD-#' and I#I#I ha!e come up with aggressi!e strategies to beat the foreign funds. :ow the cutthroat competition goes on and on. HD-# )utual funds ha!e rewarded in!estors with hand some returns. The good news is that this is poised to become a trend. The mutual funds ha!e strengthened their distribution networ s' become more transparent and in!estor friendly and are rewarding in!estors. The mutual fund is finally' pro!ing itself as a !ehicle of safety for in!estments. But it is still the fund manager(s in!estment philosophy that ma es the difference between the winner and the losers. #areful mar et analysis' consumer segmentation' identification of in!estor needs' ser!ice designing are to be carried out for the successful implementation of different schemes by mutual fund organi&ations. 3egulatory measures by SEBI should be clearly e"plained to the in!estors. $ositioning of the schemes and their branding will help a lot for growth of the industry. #reati!ity and inno!ation are the means of mar eting in the days to come for Indian mutual fund mar et.

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