Professional Documents
Culture Documents
Submitted to
YASHWANTRAO CHAVAN MAHARASHTRA OPEN UNIVERSITY
SCHOOL OF COMMERCE AND MANAGEMENT
Nashik.
By
Through
The Coordinator
Study centre code:- 5303A
1. INTRODUCTION
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. 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.
There are different types of Mutual Funds in India. They are as follows:
Prudential ICICI Mutual Fund
The mutual fund of ICICI is a joint venture with Prudential PLC. Of America, one
of the largest life insurance companies in the USA. Prudential ICICI mutual fund
was set up on 13th of Oct. 1993 with two sponsors. ICICI Bank started as a wholly
owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four
years later, when the company offered ICICI Bank's shares to the public, ICICI's
shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an
equity offering in the form of ADRs on the New York Stock Exchange (NYSE),
thereby becoming the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. In the next year, it
acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the
year and the next fiscal year, the bank made secondary market sales to institutional
investors.
Equity funds.
Balanced funds.
Debt funds.
Liquid funds.
Children’s gift 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 on3rd 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
as1412 branches and over 3275 ATMs across India.
Products and Schemes of HDFC mutual fund
Equity funds.
Balanced funds.
Debt funds.
Liquid funds.
AMFI, the association of SEBI registered mutual funds in India of all the
registered Asset Management Companies, was incorporated on August 22, 1995,
as a non-profit organization. As of now, all the 42 Asset Management Companies
that are registered with SEBI, are its members.
Objectives of AMFI:
To define and maintain high professional and ethical standards in all areas of
operation of mutual fund industry.
To recommend and promote best business practices and code of conduct to
be followed by members and others engaged in the activities of mutual fund
and asset management including agencies connected or involved in the field
of capital markets and financial services.
To interact with the Securities and Exchange Board of India (SEBI) and to
represent to SEBI on all matters concerning the mutual fund industry.
To represent to the Government, Reserve Bank of India and other bodies on
all matters relating to the Mutual Fund Industry.
To undertake nationwide investor awareness programme so as to promote
proper understanding of the concept and working of mutual funds.
To disseminate information on Mutual Fund Industry and to undertake
studies and research directly and/or in association with other bodies.
To take regulate conduct of distributors including disciplinary actions
(cancellation of ARN) for violations of Code of Conduct.
To protect the interest of investors/unit holders.
2. Importance and Significance of the Study
To choose the best company for mutual funds investment between ICICI and
HDFC.
To know the risks and returns associated with mutual funds.
To make people aware of concept of mutual funds.
To provide information regarding advantages and demerits of mutual funds.
To advice where to invest and not to invest.
To provide information regarding types of mutual funds which is beneficial
for whom.
.
4. Hypotheses
5. Research Methodology
A. Data Collection
There are two ways to collect date for the research, Primary data and
Secondary data.
(a) Primary Data:-
A primary data are those which are collected a fresh and for the first time
and for the purpose of the research and thus happens to be original in
nature.
Here, the Researcher will collect the primary data with the help of survey
method. A structured Questionnaire will be prepared for the existing
investors of mutual funds and their replies will be sought.
6. Expected Contribution
This research work will cover the study of different mutual funds which are offers
by ICICI and HDFC. The study will put some light on the risks and returns
associated with the investments with these two firms.
This study will also help investors to choose the right funds of these two different
companies. This study will also improve the decision making capacity of the
investors about mutual funds.
7. Chapterisation
Bibliography
Appendix