Professional Documents
Culture Documents
1 Introduction To Topic 7
2 Introduction to Companies 11
3 Review of literature 14
4 Need/Scope of Study 16
5 0bjective of the study 16
6 Research Methodology 18
7 Analysis 21
8 Findings 43
9 Limitations 43
10 Recommendations 43
11 44
Conclusion
12 46
Bibliography
13 Annexure 48
1
2
Introduction to Topic
3
What is mean by mutual fund?
Mutual funds are pools of money that are managed by an investment company. They
offer investors a variety of goals, depending on the fund and its investment charter. Some
funds, for example, seek to generate income on a regular basis. Others seek to preserve an
investor's money. Still others seek to invest in companies that are growing at a rapid pace.
Funds can impose a sales charge, or load, on investors when they buy or sell shares.
Many funds these days are no load and impose no sales charge. Mutual funds are
investment companies regulated by the Investment Company Act of 1940. Related: open-
end fund, closed-end fund.
A mutual fund is a trust that pools the savings of a no. of investors, who share a common
financial goal. The money thus collected is then invested in capital market instruments
such as shares, debentures and other securities. The income earned through these
investments and the capital appreciations realized are shared by its unit holders in
proportion to the number of units owned by them. Thus a mutual fund is the most suitable
investment for the common man as it offers an opportunity to invest in diversified,
professionally managed basket of securities at a relatively low cost.
Historical Aspect
Mutual fund firstly was established in 1822 in the form of Society General De
Belguique. It mainly gains the progress in Switzerland & little in franc and Germany in
its initial days. The first investment trust The foreign and colonial govt. trust Was
founded in London in 1868.
The origin of mutual fund industry in India is with the introduction of the concept of
by UTI in the year 1963. Through the growth was slow, but it accelerated from the
year 1987 when non-UTI players entered in industry. The mutual fund industry goes
through four phases:-
4
In the first phase, UTI was established in 1963 by an act of parliament.
In 1978 it was delinked from RBI & the IDBI took over the control of UTI. In second
phase, SBI entered as first non-UTI mutual fund provider then it was followed by can
bank (Dec. 87). PNB (Aug 89) & LIC in 1989. In third phase, the private sector
entered in it. The Erstwhile Kothari pioneer (now merged with Franklin Templeton)
was first registered in July 1993 in mutual fund. In revised registration of SEBI I n
1993 the industry functions under SEBI. And the fourth phase had bitter experience
for UTI. It was bifurcated into two separate entities. One is the specified under taking
of UTI with AUM of 29,835cr. The second is UTI mutual fund ltd. Sponsored by SBI,
PNB, BOB and LIC& it is registered with SEBI.
Types of
Mutual Fund
Index schemes
Close Income
Money Market
5
Advantages of Mutual Funds
Diversification.
Professional Management.
Liquidity (mainly in case of opened mutual funds).
Regulatory.
Convenience.
Low cost.
Reduction of transaction cost.
Diverse returns.
Advantages to Industrial concern.
Tax relief.
Attract foreign Capital.
Reduction / Diversification of risk.
No guaranties.
Fees & Commission.
Taxes.
Management Risk.
6
7
Introduction to Companies
8
HDFC Mutual Fund
HDFC mutual fund was set up on June 30, 2000 with two sponsors namely
Housing Development Finance Corporation ltd. and Standard Life Insurance ltd.
HDFC mutual fund came into existence on 10 Dec. 1999 and got approval from the
SEBI on 3rd July 2000.
Housing Development Finance Corporation Limited, more popularly known as
HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of
the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first
banks to receive an 'in principle' approval from RBI, for setting up a bank in the
private sector. The bank was incorporated with the name 'HDFC Bank Limited', with
its registered office in Mumbai. The following year, it started its operations as a
Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches
and over 3275 ATMs across India.
Equity funds.
Balanced funds.
Debt funds.
Liquid funds.
Equity funds.
Balanced funds.
Debt funds.
Liquid funds.
Childrens gift fund
9
Other Players in Mutual Fund
10
Review of Literature
11
COMPANY PROFILE
ICICI Bank is India's second-largest bank with total assets of about Rs. 1
trillion and a network of about 540 branches and offices and over 1,000
ATMs. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas
of investment banking, life and non-Banking , venture capital, asset
management and information technology. ICICI Bank's equity shares are
listed in India on stock exchanges at Chennai, Muzaffarnagar, Kolkata and
Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange
of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).
HDFC Banks exposure to market risk a function of its trading and asset
and liability management activities and its role as a financial intermediary
in customer-related transactions. HDFC had tried its best in mutual fund sector. It has
grown up its market share in a meanwhile time. The objective of market risk management
is to minimize the impact of losses due to market risks on earning and equity capital.
Source:- www.sribd.com
www.artclenich.com
12
Need of study
Scope of study
Objectives of study
13
Need of the study
The need of study arises for learning the variables available that distinguish the
mutual fund of two companies.
To know the risk & return associated with mutual fund.
To chose best company for mutual investment between HDFC & ICICI.
To project mutual fund as the productive avenue for investing activities.
Objectives
.
To analysis which provides better returns from HDFC &ICICI.
To analyze the concept and parameters of mutual fund.
To know how many people are satisfied by their investment (in HDFC or ICICI).
To know people behavior regarding risk factor involved in mutual fund.
.
14
Research Methodology
15
Research refers to search for knowledge. One can also define research as a scientific and
systematic search for pertinent information on a specific topic. It is an art of scientific
investigation.
Research Methodology:-
It is the way to systematically solve a problem. The methodology adopted in this
study is explained below:-
Research Design
A. Problem Defining:
B. Literature Survey:
C. Type of research:
The research is qualitative & descriptive in nature. Qualitative
research is that talk about the quality of the subject to be researched and
Descriptive research is one that describes things as exists in present.
I. Sources of data =
II. Sampling =
16
III. Tools =
V. Sampling Techniques =
Deliberate &
Convenience Sampling.
17
Analysis
18
1. Do you invest in mutual fund?
YES 100
NO 0
120
100
100
80
60 YES NO
40
20
Interpretation:-
All the candidates who are asked to fill the questionnaire have invested in mutual fund.
19
2. With which company do you have invested in mutual funds?
HDFC 65
ICICI 35
Reliance 0
SBI 0
LIC 0
Kotak Mahindra 0
Others 0
70 65
60
50
40 35
HDFC ICICI Reliance SBI LIC Kotak Mahindra Others
30
20
10
0
0 0 0 0 0
Interpretation:
Out of 100 candidates up to 65have invested in mutual fund with HDFC & 35 have
invested with ICICI. There is no investor who have invested in mutual fund with any
another company.
20
VAR00001
HDFC
65 50.0 15.0
ICICI
35 50.0 -15.0
Total
100
Test Statistics
VAR00001
Chi-Square 9.000a
df 1
21
3. What is your age?
.
8
15-25
25-35 12
35-45 60
More than 45 20
60
60
50
40
15-25 25-35 35-45 More than 45
30
20
20 12
8
10
Interpretation:
60 investors are of age between 35-45. 20 are of age more than 45. 12 are of between of
25-35. 8 are of 15-25. This data shows that many investors are of middle age & there are
less investors of young age in mutual fund.
22
One-Sample Statistics
VAR00001
100 2.9200 .80000 .08000
One-Sample Test
Test Value = 0
1 lakh 0
2-4 lakh 10
4-5 lakh 20
More than 5 70
23
70
70
60
50
30
20
20
10
10
0
0
Interpretation:
Up to 70 investors have income more than 5 lakh. 20 have between 4-5 lakh.10 investors
have income between 2-4 lakh & there is no investor who have income up to 1akh.
24
VAR00001
Total 100
Test Statistics
VAR00001
Chi-Square 68.320a
df 3
5. From where you come to know about this companys mutual fund schemes?
Company employee 15
Others 10 25
40
40 35
35
Family & relatives
30 Friends & peers Company employee Others
25
20 15
15 10
10
Interpretation:
Many investors (up to 40) have been come to know about the company to be invested by
their friends & peers.35 have been known by their family & relatives .15have been come
to know by company employees & 10 by others. This means many have come to know
by their friends & peers.
VAR00001
Total
26
100
VAR00001
Total 100
0-1 year 15
1-2 year 35
2-4year 30
more than 4 20
27
35
35 30
30
25 20
20 0-1 year 15 1-2 year 2-4year more than 4
15
10
5
Interpretation:
15 investors have time of investment less than one year. 20 have time duration of their
investment between of 1-2 year. 30 have between 2-4 year & 35 have more than 4 years.
So, we can say that 35 investors have more experience than others.
VAR00001
Highly satisfied 15
Satisfied 35
Neutral 30
Dissatisfied 15
Highly Dissatisfied 5
29
35
35 30
30
Highly satisfied Satisfied Neutral Dissatisfied
25
20 15 15
15
10 Highly Dissatisfied 5
5
0
Response
Interpretation:
Out of 100 investors 15 are highly satisfied. 35 are satisfied. 30 are neutral towards
employee behavior of a company. 15 are dissatisfied. 5 are highly dissatisfied. We say
that many people are satisfied by employee behavior.
VAR00002
Total 100
30
Test Statistics
VAR00002
Chi-Square 30.000a
df 4
Innovator 20
Moderate 65
Risk adverse 15
31
65
70
60
50
40
30
20
15
20
10
0
Innovator Moderate Risk adverse
Interpretation:
20% investors are innovator means they like to take risk for more returns. 15% are
moderate towards risk means they are indifferent towards risk. 65% are risk adverse
means they mainly try to avoid risk.
32
VAR00002
innovator
20 33.3 -13.3
moderate
65 33.3 31.7
risk adverse
15 33.3 -18.3
Total
100
Test Statistics
VAR00002
Chi-Square 45.500a
df 2
9. What you feel about the company norms, documentation & formalities?
Highly Satisfied 15
Satisfied 25
Neutral 40
Dissatisfied 15
Highly dissatisfied 5 33
VAR00002
Total 100
5% Highly Satisfied
15%
15%
Satisfied
Neutral
25%
Dissatisfied
40% Highly
Dissatisfied
Interpretation:
15% investors are highly satisfied by companys documentation policy (filling up the
forms etc.). 25% are satisfied, 40% never cares about it or are moderate towards it , 15%
are dissatisfied by it & 5% are highly dissatisfied.
34
Test Statistics
VAR00002
Chi-Square 35.000a
df 4
HDFC 68
ICICI 32 35
68
70
60
50
32
40 HDFC ICICI
30
20
10
Interpretation:
According to collected data 68 investors thinks that HDFC provides better returns where
as 32 to think that ICICI provides better returns.
VAR00001
HDFC
68 50.0 18.0
ICICI 36
32 50.0 -18.0
Total
100
Test Statistics
VAR00001
Chi-Square 12.960a
df 1
11. Would you like to exchange your investment with one another between
HDFC & ICICI?
37
Yes 15
No 85
85
90
80
70
60
Yes No
50
40
30
15
20
10
0
Interpretation:
15 investors said that they would like to change their investment with each another
between HDFC & ICICI. But 85 investors say that they are ok with their companies and
they wouldnt like to exchange their investment.
38
VAR00001
Yes
15 50.0 -35.0
No 85 50.0 35.0
Test Statistics
Total 100
VAR00001
Chi-Square 49.000a
df 1
39
Findings
Limitations
Recommendations
Conclusion
40
Findings: - In my research I have founded following things:-
ICICI bank should try to provide better returns to its investors as compare to
HDFC.
Both companies should try to invest in better securities for better profits.
Both companies should try to satisfy their customer by better customer service
or by improving customer relationship management.
Companies should try to make people initiative towards risk.
Investors should be made fully aware of the concept of mutual fund & all the
terms and conditions.
It should more emphasize in advertising, as it is the most
Powerful tool to position ant brand in the mindsets of customers
41
Conclusion: - To conclude we can say that mutual fund is a very much profitable tool for
investment because of its low cost of acquiring fund, tax benefit, and diversification of
profits & reduction of risk. Many investors who have invested in mutual fund have
invested with HDFC and them also thinks that it provides better returns than ICICI .There
is also an affect of age on mutual fund investors like; old people & widows want regular
returns than capital appreciation. Companies can adopt new techniques to attract more &
more investors. In my study I was suppose to do comparative analyses the mutual fund of
HDFC &ICICI and I had found that people consider HDFC better than ICICI. But ICICI
have also respondents and it can increase its investors by improving itself in some terms.
To conclude we can say mutual fund is a best investment vehicle for old &
widow, as well as to those who want regular returns on their investment.
Mutual fund is also better and preferable for those who want their capital
appreciation.
Both the companies are doing considerable achievements in mutual fund industry.
There are also so many competitors involved those affects on both companies.
42
43
Bibliography
44
Bibliography:-
Books:-
C.R.Kothari, Research Methodology. New Delhi, Vikas Publishing
house Pvt.Ltd.2007.
ICICI and HDFC Brochure .
Websites:-
www.wiki.answers.com
www.scribd.com
www.hdfc.com
www.icici.com
www.google.com
45
Annexure
46
Annexure
Yes No .
HDFC ICICI
Reliance LIC
Others
Please specify
15.25 25-35
35-45 above 45 .
1 lakh 2 - 4lakh
5. From where you come to know about this companys mutual fund schemes?
Companyemplooyes
Others
Please specify .
47
6. What is the time duration of your investment?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied .
Innovator
Moderator
Risk adverse
9. What you feel about the company norms, documentation & formalities?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
48
10. What you say which provides better returns?
HDFC ICICI
11. Would you like to exchange your investment with one another between HDFC &
ICICI?
YES NO
49