A Study On Performance Analysis of Selected Banking Mutual Fund

“A STUDY ON PERFORMANCE ANALYSIS OF SELECTED BANKING MUTUAL FUNDS”
CHAPTER 1
INTRODUCTION
What Is a Mutual Fund?
A mutual fund is a type of financial vehicle made up of a pool of money collected from

many investors to invest in securities such as stocks, bonds, money market instruments, and
other assets. Mutual funds are operated by professional money managers, who allocate the fund's
assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's
portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Mutual funds give small or individual investors access to professionally managed
portfolios of equities, bonds and other securities. Each shareholder, therefore, participates
proportionally in the gains or losses of the fund. Mutual funds invest in a vast number of
securities, and performance is usually tracked as the change in the total market cap of the fund—
derived by the aggregating performance of the underlying investments.
The Basics of a Mutual Fund
Mutual funds pool money from the investing public and use that money to buy other
securities, usually stocks and bonds. The value of the mutual fund company depends on the
performance of the securities it decides to buy. So, when you buy a unit or share of a mutual
fund, you are buying the performance of its portfolio or more precisely, a part of the portfolio's
value.
That's why the price of a mutual fund share is referred to as the net asset value (NAV) per
share, sometimes expressed as NAVPS. A fund's NAV is derived by dividing the total value of
the securities in the portfolio by the total amount of shares outstanding. Outstanding shares are
those held by all shareholders, institutional investors, and company officers or insiders. Mutual
fund shares can typically be purchased or redeemed as needed at the fund's current NAV, which
—unlike a stock price—doesn't fluctuate during market hours, but is settled at the end of each
trading day.
ACHARYA INSTITUTE OF GRADUATE STUDIES Page 1

The average mutual fund holds hundreds of different securities, which means mutual
fund shareholders gain important diversification at a low price. Consider an investor who buys
only Google stock before the company has a bad quarter. He stands to lose a great deal of value
because all of his dollars are tied to one company. On the other hand, a different investor may
buy shares of a mutual fund that happens to own some Google stock. When Google has a bad
quarter, she only loses a fraction as much because Google is just a small part of the fund's
portfolio.
Types of Mutual Funds:
Mutual fund schemes may be classified on the basis of its structure and its investment
objective.
ByStructure:
Open-end Funds :
An open-end fund is one that is available for subscription all through the year. These do
not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value
("NAV") related prices. The key feature of open-end schemes is liquidity.
Closed-end Funds :
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15
years. The fund is open for subscription only during a specified period. Investors can invest 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 stock exchanges where they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to the Mutual Fund
through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one
of the two exit routes is provided to the investor.
Interval Funds :
Interval funds combine the features of open-ended and close-ended schemes. They are
open for sale or redemption during pre-determined intervals at NAV related prices.
By Investment Objective:

Growth Funds :
The aim of growth funds is to provide capital appreciation over the medium to long term.
Such schemes normally invest a majority of their corpus in equities. It has been proved that
returns from stocks, have outperformed most other kind of investments held over the long term.
Growth schemes are ideal for investors having a long-term outlook seeking growth over a period
of time.
Income Funds :
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate debentures and
Government securities. Income Funds are ideal for capital stability and regular income.
Balanced Funds :
The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. In a rising stock market, the NAV
of these schemes may not normally keep pace, or fall equally when the market falls. These are
ideal for investors looking for a combination of income and moderate growth.
Money Market Funds :
The aim of money market funds is to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer short-term instruments such as
treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on
these schemes may fluctuate depending upon the interest rates prevailing in the market.
These are ideal for Corporate and individual investors as a means to park their surplus
funds for short periods.
OtherSchemes:
Tax Saving Schemes :

These schemes offer tax rebates to the investors under specific provisions of the Indian
Income Tax laws as the Government offers tax incentives for investment in specified avenues.
Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed

as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to
investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds.
Industry Specific Schemes :

Industry Specific Schemes invest only in the industries specified in the offer document.
The investment of these funds is limited to specific industries like Infotech, FMCG, and
Pharmaceuticals etc.
Index Schemes :
Index Funds attempt to replicate the performance of a particular index such as the BSE
Sensex or the NSE 50
Sectoral Schemes :
Sectoral Funds are those, which invest, exclusively in a specified sector. This could be an
industry or a group of industries or various segments such as 'A' Group shares or initial public
offerings.
RISKS ASSOCIATED WITH MUTUAL FUNDS
Investing in mutual funds, as with any security, does not come without risk. One of the
most basic economic principles is that risk and reward are directly correlated. In other words, the
greater the potential risk the greater the potential return. The types of risk commonly associated
with mutual funds are:
Market risk:
Market risk relates to the market value of a security in the future. Market prices fluctuate
and are susceptible to economic and financial trends, supply and demand, and many other factors
that cannot be precisely predicted or controlled.
Political risk:
Changes in the tax laws, trade regulations, administrated prices, etc are some of the many
political factors that create market risk. Although collectively, as citizens, we have indirect
control through the power of our vote individually, as investors, we have virtually no control.

Inflation risk:
Interest rate risk relates to futures changes in interest rates. For instance, if an investor
invests in a long – term debt mutual fund scheme and interest rates increase, the NAV of the
scheme will fall because the scheme will be end up holding debt offering lower interest rates.
Business risk:
Business risk is the uncertainty concerning the future existence, stability, and profitability
of the issuer of the security. Business risk is inherent in all business ventures. The future
financial stability of a company cannot be predicted or guaranteed, nor can the price of its
securities. Adverse changes in business circumstances will reduce the market price of the
company’s equity resulting in proportionate fall in the NAV of the mutual fund scheme, which
has invested in the equity of such a company.
Economic risk:
Economic risk involves uncertainty in the economy, which, in turn, can have an adverse
effect on a company’s business. For instance, if monsoons fail in a year, equity stocks of
agriculture – based companies will fall and NAV’s of mutual funds, which have invested in such
stocks, will fall proportionately.
TAX BENEFITS:-
The taxman has over the years, been more or less kind to mutual funds, with laws varying
from time to time; the overall objective has been to encourage the growth of the mutual funds
industry. Currently, a variety of tax laws apply to mutual funds, which are broadly listed below:
Capital gains:
Units of mutual fund schemes held for a period more than 12 months are treated as long
term capital assets. In such cases, the unit holder has the option to pay capital gains tax at either
20% (with indexation) or 10% without indexation.

Tax deducted at source:
For any income credited or paid by a fund, no tax is deducted or withheld at source. The
relevant sections in the income tax act governing this provision are section 194K and 196A.
Wealth tax:
Mutual fund units are not currently treated as assets under section 2 of the wealth tax act
and are therefore not liable to tax.
Income from units:
Any income received from units of the schemes of the mutual fund specified under
section 23(D) is exempt under section 10(33) of the act. While section 10(23D) exempts income
of specified mutual funds from tax (which currently includes all mutual funds operating in
India), section 10(33) exempts income from funds in the hands of the unit holder. However, this
does not mean that there is no tax at all on income distributions by mutual fund.
Income distribution tax:
As per prevailing tax laws, income distributed by schemes other than open-end equity
schemes is subject to tax at 20% (plus surcharge of 10%). For this purpose, equity schemes have
been defined to be those schemes that have more than 50% of their assets in the form of equity.
Open-end equity schemes have been left out of the purview of this distribution tax for a period of
three years beginning from April 1999.
Different Modes of Receiving the Income Earned From Mutual Fund Investments
Mutual funds offer three methods of receiving income:
Growth plan:
In this plan, dividend is neither declared or paid out to the investor but is built into the
value of the NAV. In other words, the NAV increases over time due to such incomes and the
investor realizes only the capital appreciation on redemption of his investment.

Income funds:
In this plan, dividend are paid out’s to the investor. In other words, the NAV only reflects
the capital appreciation or depreciation in market price of the underlying portfolio.
Dividend re-investment plan:
In this case, dividend is declared but not paid out to the investor, instead, it is reinvested
back into the scheme at the then prevailing NAV. In other words, the investor is given additional
units and not cash as dividend.
Net asset value (NAV)
The net asset value of the fund is the cumulative market value of the asset fund net of its
liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the assets in the
fund, this is the amount that the shareholders would collectively own. This gives ride to the
concept of net asset value per unit, which is the value, represented by the ownership of one unit
in the fund. It is calculated simply by dividing the net asset value of the fund by the number of
units. However, most people refer loosely to the NAV per unit as NAV, ignoring the “per unit”.
We also abide by the same convention.
CALCULATION OF NAV
The most important part of the calculation is the valuation of the assets owned by the
fund. Once its is calculated, the NAV is simply the net value of assets divided by the number of
units outstanding. The detailed methodology for the calculation of the asset value is given below.
Asset value is equal to
Sum of market value of shares / debentures + liquid assets / cash held, if any + dividend /
interest accrued
Amount due on unpaid assets
Expenses accrued but not paid

Details on the above items:
For liquid shares/debentures, valuation is done on the basis of the last or closing market
price on the principal exchange where the security is traded.
For illiquid and unlisted and/or thinly traded shares/debentures, the value has to be
estimated. For shares, this could be the book value per share or an estimated market price. If
suitable benchmarks are available. Fore debentures and bonds, value is estimated on the basis of
yields of comparable liquid securities after adjusting for illiquidity. The value of fixed interest
bearing securities moves in a direction opposite to interest rate changes valuation of debentures
and bonds is a big problem since most of them are unlisted and thinly traded. This gives
considerable leeway to the AMC’s on valuation and some of the AMC’s are believed to take
advantage of this and adopt flexible valuation policies depending on the situation.
Interest is payable on debentures/bonds on periodic basis say every 6 months. But, with
every passing day, interest is said to be accrued, at the daily interest rate, which is
calculated by dividing the periodic interest payment with the number of days in each period.
Thus, accrued interest on a particular day is equal to the daily interest rate multiplied by
the number of days since the last interest payment date.
Usually, dividends are proposed at the time of annual general meeting and become due on the
record date. There is a gap between the dates on which it becomes due and the actual payment
date. In the immediate period, it is deemed to be “Accrued”. Expenses including management
fees, custody charges etc. Are calculated on daily basis
What is the difference between Equity and Debt fund?
“Aren’t all Mutual Funds the same? After all, it’s a Mutual Fund, isn’t it?” Asked Gokul.
His friend Harish, a Mutual Fund distributor, smiled. He was all too familiar with such a remark
coming from many.
A large number of people carry the misconception that all Mutual Funds are the same.
There are various types of funds, chief among these are equity funds and debt funds. The
difference between the two comes from where the money is invested. While debt funds invest in

fixed income securities, equity funds invest predominantly in equity share and related securities.
Both equity and fixed income securities have different characteristics that determine how the
respective schemes would behave.
Different investors have different requirements. Some need high returns to achieve their
goals, whereas some cannot afford to take high risks. Some investors may have long term goals,
whereas some may have short to medium term goals. An investor must choose an equity fund for
long term goals and debt funds for short to medium term goals. Equity funds have the potential
to offer higher returns, but with risk, whereas debt funds offer relatively stable but moderate to
low returns.

CHAPTER 2
RESEARCH DESIGN
TITLE OF THE STUDY
“A study on performance analysis of selected banking mutual funds with special

reference to HDFC Mutual Funds”
NEED FOR THE STUDY
This study has been emphasized on Indian mutual funds with special reference to banking
mutual funds which were considered from both national level stock exchanges such as BSE &
NSE.
STATEMENT OF THE PROBLEM.
Mutual fund investment has lot of changes in the recent past, and investors mentality and
their expectation are changing in the present scenario. Investors preference towards return, risk
varies often. The investor should compare the risks and returns before investing in a particular
fund. For this, he should get the advice from experts and consultants and distributors of mutual
fund schemes. The investors can invest in the mutual fund and can be to get more benefits.
Periodically checking up on how the mutual fund is doing is important, and there are lots of
measures that the investor can use to perform the checking. A funds track record may be the
single most important factor that an investor checks before opting for a mutual fund product.
Hence evaluating funds is important before investing.
OBJECTIVES OF THE STUDY
 To study the Risk associated with mutual funds from investor’s point of view.
 To conduct performance analysis of mutual funds with special reference to banking
sector mutual funds.
 To suggest better investment opportunities based on the study conducted.
 To get an idea about regulation of mutual funds in India.

 To compare the performance of mutual fund schemes of selected banking companies on

the basis of benchmark Index.
SCOPE OF THE STUDY
The study helps to evaluate the performance of selected mutual funds at with special
reference to HDFC Mutual funds. The analysis of performance is measured on the basis of not
more than 5 selected mutual funds. The sample is selected for 5 years i.e from April 2015 to
March 2019 based on data. The basis for this selection is the availability and consistency of the
data during the study period. This is done for bringing out meaningful and comparable results.
RESEARCH METHODOLOGY
Financial research can be a systematic and organized effort to investigate into a problem
encountered in the investment scenario. It comprises a series of theoretical concepts designed
and executed, with the goal of finding answers to the issues that are of concern to the manager
and the work environment. The first step in the process is to identify the problem areas that exist
in the selection of securities.
ANALYSIS TOOLS USED
TREND RATIO
Trend signifies tendency. Therefore, review and appraisal of tendency in accounting

variables is simply called trend analysis.
MARKET VALUE
Market value / Market price is economic price for which a good or service is offered in
the market place. It is of interest, mainly in study of micro economics. Market value and Market
price are equal only under conditions of market efficiency, equilibrium and national
expectations.

DATA SOURCES
For carrying out the study, both primary and secondary data are required. The methods of
data collection are as follows
Primary Data
Primary data are those data which are collected for the first time and this is happen to be
original in character. Here primary data was collected through direct personal interview with
research heads and other officials of the HDFC Mutual Funds company.
Secondary Data
Secondary data involves the existing information available for the study. It comprises of :
1. Details were obtained from company files ,records and documents
2. Various published books, journals and news papers
3. Web pages of NSE, BSE
PLAN OF ANALYSIS:
Collected data was Analyzed and tabulated with the help of MS Excel and then they have
been presented in the tables and Graphs in this report. These are the basis for drawing the
appropriate conclusion for this project.
LIMITATIONS OF THE STUDY
 The organizations which have been studied and surveyed may not providing us with full
information which has hampered the result and conclusion.
 Exact data may not be available.
 Non - availability of good secondary data may restricted my study to a few data available
 The study is conducted for a limited period of days.

CHAPTER SCHEME
CHAPTER 1 : ITNRODUCTION
CHAPTER 2 : RESEARCH DESIGN
CHAPTER 3 : COMPANY PROFILE
CHAPTER 4 : DATA ANALYSIS AND INTERPRETATION
CHAPTER 5 : FINDINGS CONCLUSION AND SUGGESTION
BIBLIOGRAPHY
ANNEXURE
REVIEW OF LITERATURE
A Study of performance of mutual fund has become more controversial. Conversely

Rajesh Kumar, RiturajChandrakar( 2012) evaluates the performance of 29 open-ended,
growth-oriented equity schemes for the period from April 2005 to March 2011 (six years) of
transition economy. The study revealed that 14 out of 29 (48.28 percent) sample mutual fund
schemes had outperformed the benchmark return. The results also showed that some of the
schemes had underperformed; these schemes were facing the diversification problem
Dr.R.Narayanasamy, V Rathnamani, (2013) evaluate the performance of selected

equity large cap mutual funds schemes in terms of risk- return relationship . The performance
analyse of the selected five equity are large cap funds. The study may conclude that all the funds
have performed well in the high volatile market movement expect Reliance vision

Dr.S. Narayanrao,(2003) evaluate the performance evaluation of Indian mutual funds in

a bear market is carried out through relative performance index. The results of performance
measures suggest that most of the mutual fund schemes in the sample of 58 were able to satisfied
investor’s expectations by giving excess returns over expected returns based on both low-grade
for systematic risk and total risk. Suchitashukla (2015) analyzed the financial performance in
terms of risk –return relationship of selected mutual fund schemes (5 categories ×3 mutual fund=
15 schemes). The study reveals that Overall the mutual funds have given better returns than the
benchmark in the above period subject to infrastructure fund in year 2013.
Sahiljain (2012) evaluate the performance of equity based mutual funds. A total of 45
schemes offered by 2 private sector companies and 2 public sector companies, have been studied
over the period April 1997 to April 2012 (15 years). The analysis has been made using the risk-
return relationship and Capital Asset Pricing Model (CAPM). The overall analysis finds that
HDFC and ICICI have been the best performers, UTI an average performer and LIC the worst
performer which gave below- expected returns on the risk-return relationship.
Dr. Shriprakashsoni, Dr. Deepalibankapue, Dr. Maheshbhutada, (2015)comparative

analysis of mutual fund schemes available at kotak mutual fund and HDFC mutual fund. The
study conclude that Kotak Mutual Fund schemes are more destructive in Large Cap Equity
schemes and HDFC Mutual Fund schemes are more destructive in Mid Cap Equity schemes
where as both the companies schemes are very well managed in debt market. Kotak Select Focus
is the best scheme in Large cap Equity, HDFC Mid-Cap is the best scheme in Mid-Cap sector
and HDFC Balanced Fund is the best scheme in Balanced Fund for investment.
Dr.R. Karrupasamy, Mrs. V. Vanaja, (2014)This study reveals that majority of the
public sector schemes selected for the study outperformed the category average and also
benchmark indices and majority of the diversified schemes performed well on the basis of
performance index.
Dr.Vikaskumar (2011)analysed of the open ended schemes shows that out of twenty
five schemes namely Reliance Growth Fund, Reliance Vision Fund, ICICI Prudential Tax Plan,
HDFC Top 200 and Birla Sun Life Equity Fund, performs better in comparison to benchmark

index BSE-100 index in terms of monthly average return and risk involved in these schemes less
then benchmark
Kalpesh P Prajapati, Mahesh K. Patel( 2012) It evaluate the Indian mutual funds is
carried out through relative performance index, risk-return analysis, Sharp's measure, Jensen's
measure, and Fama's measure. All selected mutual fund companies have positive return during
2007 to 2011. HDFC and Reliance mutual fund have performed well as compared to the Sensex
return. ICICI prudential and UTI Mutual fund has lower level of risk compare to HDFC and
Reliance mutual fund
Tejsingh, Priyanka( 2014)analysed the private sector of mutual funds are gaining more
in terms of scale of mobilization of funds compared to that of public sector mutual funds. The
study reveals that the private sector mutual funds are gaining more in terms of scale of
mobilization of funds compared to that of public sector. The gap is reaching up to 81 percent in
2003-04 from 31 percent in 1998-99 and finally settled at 54 percent in 2009-10
Treynor (1965) developed a methodology for evaluating the performance of mutual fund
that is reward to volatility ratio. Sharpe (1966) gave a comprehensive measure of performance
evaluation in the form of reward to variability ratio.
Jensen (1968) gave a risk adjusted performance measure named as Jensen Ratio. This
ratio measures the differential between actual return earned on a portfolio and the return
expected from the portfolio given its level of risk.
Zafar, Chaubeg and Nawab (2015) evaluated the performance of equity diversified
growth schemes of thirteen funds over a period of one year (2007-2008) and ranked the funds on
the basis of Sharpe’s, Traynor’s and Jenson’s ratios. The study revealed that the linear
relationship between risk and return does not hold true as there are many funds having high &
but low returns and secondly the performance and rank of a fund is different under different
indices of performance.
Taneja and Bansal (2014) compared the large cap equity and debt mutual fund schemes
for the period of three years (2010-2013) and concluded that most of the sample equity mutual
fund schemes were performing better in comparison to debt mutual funds as equity funds were

having the low standard deviation, low beta, the high value of alpha, high Sharpe, and Treynor
ratio. But in the case of Debt mutual fund scheme UTI short term income fund was not
performing well because of highest beta and lowest Sharpe Ratio.
Yadav and Hemanth (2014) in their paper attempted to analyze the fifteen equity
growth mutual funds schemes across ten AMCs using performance evaluation models. The
Study period was three years (1st June 2010 to 31st May 2013). The result showed that many
schemes failed to beat the benchmark return in the long run and reason was given as
disproportionate risk and return relationship and the low average beta of the schemes.
Nagesh (2014) analyzed in his study the risk and return mutual funds schemes pertaining
to three sectors i.e. Pharmaceutical, IT and Banking. The study period was from April 2010 to
February 2013. He concluded that banking sector funds such as reliance banking fund and ICICI
banking fund showed the best performance. UTI banking sector fund was having the highest risk
and second was ICICI banking fund. As per Sharpe’s Index, Treynor and Jensen’s ratio the
Reliance Banking Fund performed Best and the Birla Sun Life New Millennium fund was the
worst performer.
Kaur (2013) in her paper evaluated the performance of top ten openended growth funds
for the period of 2008-2010 and also performed attribution analysis of managerial performance
on the parameters of diversification, timing, and selectivity. The finding showed that on an
average mutual funds track their benchmark and an investor was benefited by less risky
investments. The result was having implications for investors as MF outperformed the market
and attribution analysis showed that ‘managerial acumen’ was present. The result contradicted
with the previous research in the developed market.
Babar, Nawaz and Ashraf (2013) compared and evaluated Pakistani Mutual funds performance
with each other, with benchmark (NIT) and with market (KSE 100 index) and also analyzed the
outperforming funds during the period 2005 to 2011. The returns were not in direct co-relation to
market as they have shown negative return and the market outperformed all the mutual funds. It
was also traced out that the mutual funds with higher risk did not validate higher returns and
concluded that due to overall economic and liquidity crisis in the market, the mutual fund
industry was experiencing a declining trend in returns

CHAPTER 3
COMPANY PROFILE
HDFC Asset Management Company Limited (AMC) :
HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies
Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company
for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.
The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh
Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.
In terms of the Investment Management Agreement, the Trustee has appointed the HDFC
Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the
AMC is Rs. 25.169 crore.
The present equity shareholding pattern of the AMC is as % of the paid up equity
follows : capital
Particulars
Housing Development Finance Corporation Limited 59.98
Standard Life Investments Limited 39.99
Other Shareholders (shares issued on exercise of Stock 0.03

Options)
Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a
review of its overall strategy, had decided to divest its Asset Management business in India. The
AMC had entered into an agreement with ZIC to acquire the said business, subject to necessary
regulatory approvals.

On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual
Fund have migrated to HDFC Mutual Fund on June 19, 2003. These Schemes have been
renamed as follows:
Former Name New Name
Zurich India Equity Fund HDFC Equity Fund
Zurich India Prudence Fund HDFC Prudence Fund
Zurich India Capital Builder Fund HDFC Capital Builder Fund
Zurich India TaxSaver Fund HDFC TaxSaver
Zurich India Top 200 Fund HDFC Top 200 Fund
Zurich India High Interest Fund HDFC High Interest Fund
Zurich India Liquidity Fund HDFC Cash Management Fund
Zurich India Sovereign Gilt Fund HDFC Sovereign Gilt Fund*
The AMC is also providing portfolio management / advisory services and such activities
are not in conflict with the activities of the Mutual Fund. The AMC has renewed its registration
from SEBI vide Registration No. - PM / INP000000506 dated December 21, 2009 to act as a
Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of
Registration is valid from January 1, 2013 to December 31, 2015.
Mission Statement
To be a dominant player in the Indian mutual fund space recognized for its high levels of
ethical and professional conduct and a commitment towards enhancing investor interests.

Vision Statement
To be a dominant player in the Indian Mutual Fund space, recognized for its high level of
ethical and professional conduct and a commitment towards enhancing investor interests
Products
1. Diversified Equity
2. Thematic Equity
3. Equity Linked Savings Scheme
4. Hybrid
5. Solution Oriented
6. Theme based Debt
7. Duration Based Debt
8. Index / ETF
9. Gold ETF
Services
1. Wealth Creation
2. Tax Savings
3. Children Fund
4. Retirement Planning
5. Regular Income
Why HDFC Mutual Fund
HDFC Mutual Fund is one of the largest mutual funds and well-established fund house in
the country with consistent fund performance across categories since its incorporation on
December 10, 1999. While our past experience does make us a veteran, but when it comes to
investments, we have never believed that the experience is enough.

Our Investment Philosophy :
The single most important factor that drives HDFC Mutual Fund is its belief to give the
investor the chance to profitably invest in the financial market, without constantly worrying
about the market swings. To realize this belief, HDFC Mutual Fund has set up the infrastructure
required to conduct all the fundamental research and back it up with effective analysis. Our
strong emphasis on managing and controlling portfolio risk avoids chasing the latest "fads" and
trends.
We Offer :
We believe, that, by giving the investor long-term benefits, we have to constantly review
the markets for new trends, to identify new growth sectors and share this knowledge with our
investors in the form of product offerings. We have come up with various products across asset
and risk categories to enable investors to invest in line with their investment objectives and risk
taking capacity. Besides, we also offer Portfolio Management Services.
Trustees :
HDFC Trustee Company Limited, a company incorporated under the Companies Act,
1956 is the Trustee to HDFC Mutual Fund vide the Trust deed dated June 8, 2000, as amended
from time to time. HDFC Trustee Company Ltd is wholly owned subsidiary of HDFC
The Board of Directors of HDFC Trustee company Limited consists of the following
eminent persons.
 Mr. Anil Kumar Hirjee

 Mr. Vincent Joseph O’Brien
 Mr. Shishir K. Diwanji
 Mr. RanjanSanghi
 Mr. V. SrinivasaRangan

Mr. Anil Kumar Hirjee
Mr. Anil Kumar Hirjee, the Chairman of the Board, is an independent Director. Mr.Hirjee
has 45 years of experience in different areas of Business Management and his expertise extends
to finance, banking, legal, commercial, industrial and general administration. He has also been
actively associated with leading Charitable Institutions. Mr. Hirjee has been associated with The
Bombay Burmah Trading Corporation Limited since 1976 and is presently its Vice Chairman.
He is also a Director on the Boards of various other companies. Mr. Hirjee is a B.A. (Hons.),
LL.B. (Hons.), Barrister-at-Law, and SLOAN Fellow of the London Business School.
Mr. Vincent Joseph O’Brien
Mr Vincent Joseph O’Brien has been appointed as an associate Director on the Board of
the Trustee Company. He joined Standard Life Investments Limited in 2003 and in 2010 he was
appointed as the Global Head of Strategic Alliances with specific responsibility for the
Company’s operations in India and Japan. Prior to 2010 he was the Company Secretary with
additional responsibilities for regulatory compliance and risk management. He reports to the
Director of Global Client Group of Standard Life Investments Limited. Before 2003 he worked
for Standard Life Bank as its Company Secretary with responsibilities for compliance, risk
management and legal. He is Associate of the Chartered Insurance Institute (ASCII) of United
Kingdom
Mr. Shishir K. Diwanji
Mr. Shishir K. Diwanji, is an independent Director on the Board. He is a Partner with

Messrs. Desai and Diwanji, Advocates, Solicitors and Notaries. He is also a Director on the
Board of various other companies. Mr. Diwanji holds a Bachelors degree in Law
Mr. RanjanSanghi
Mr. RanjanSanghi, is an independent Director on the Board. He is Director / Partner with

Sah&Sanghi Group of Companies. He is also a Director on the Board of various other
companies. Mr. Sanghi is a Graduate in Commerce from Mumbai University.

Mr. V. SrinivasaRangan
Mr. V. SrinivasaRangan is an Associate Director on the Board. Mr. Rangan is an

Executive Director at Housing Development Finance Corporation Limited (HDFC Ltd). He has
been associated with HDFC Ltd. since 1986. He was inducted into the Board of HDFC Ltd. as
Executive Director in January 2010 and prior to that he was Senior General Manager – Treasury.
He has been appointed as the Executive Director of HDFC Ltd. for a period of 5 years with
effect from January 1, 2010, subject to the approval of the Members at the ensuing Annual
General Meeting of HDFC Ltd. He is also a Director on the Board of various other companies.
Mr. Rangan is a Graduate in Commerce, Grad. CWA and an Associate of the Institute of
Chartered Accountants of India
Sponsors :
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)

HDFC Ltd. was incorporated in 1977 as the first specialisedmortgage company in India.
HDFC provides financial assistance to individuals, corporates and developers for the purchase or
construction of residential housing. It also provides property related services (e.g. property
identification, sales services and valuation), training and consultancy. Of these activities, housing
finance remains the dominant activity. HDFC has a client base of around 13 lac borrowers, over
11 lac depositors, over 2.09 lac shareholders and over 25,000 deposit agents, as at March 31,
2012. The Company has a total asset size of Rs.1,67,250 crore as at March 31, 2012 and
cumulative approvals and disbursements of housing loans of Rs.4,63,400 crore and Rs.3,73,646
crore respectively as at March 31, 2012.
HDFC had raised funds from international agencies such as the World Bank, IFC
(Washington), USAID, DEG, ADB and KfW, international syndicated loans, domestic term
loans from banks and insurance companies, bonds and deposits. HDFC has received the highest
rating for its bonds and deposits program for the Seventeenth year in succession.
HDFC Life Insurance Company Limited, promoted by HDFC was the first life insurance
company in the private sector to be granted a Certificate of Registration (on October 23, 2000)
by the Insurance Regulatory and Development Authority to transact life insurance business in
India.

STANDARD LIFE INVESTMENTS LIMITED

The Standard Life Assurance Company was established in 1825 and has considerable
experience in global financial markets. The company was present in the Indian life insurance
market from 1847 to 1938 when agencies were set up in Kolkata and Mumbai. The company re-
entered the Indian market in 1995, when an agreement was signed with HDFC to launch an
insurance joint venture.
In April 2006, the Board of The Standard Life Assurance Company recommended that it
should demutualise and Standard Life plc float on the London Stock Exchange. At a Special
General Meeting held in May voting members overwhelmingly voted in favour of this. The
Court of Session in Scotland approved this in June and Standard Life plc floated on the London
Stock Exchange on 10 July 2006.
Standard Life Investments was launched as an investment management company in 1998.
It is the dedicated investment management company of the Standard Life group and is a wholly
owned subsidiary of Standard Life Investments (Holdings) Limited, which in turn is a wholly
owned subsidiary of Standard Life plc.
With global assets under management of approximately US$240.7 billion (£154.9 billion)
as at December 31, 2011, Standard Life Investments Limited is one of the world's major
investment companies, operating in the UK, Canada, Hong Kong, China, Korea, Ireland,
Australia and the USA, and is responsible for investing money on behalf of five million retail
and institutional clients worldwide
In order to meet the different needs and risk profiles of its clients, Standard Life
Investments Limited manages a diverse portfolio covering all of the major markets world-wide,
which includes a range of private and public equities, government and company bonds, property
investments and various derivative instruments. The company's current holdings in UK equities
account for approximately 1.8% of the market capitalisation of the London Stock Exchange.
SWOT Analysis of HDFC Mutual Fund
Strengths
 Large distribution network.

 Quality/Service Standards.

 Market Share.
 Returns on investment in bond schemes are good.
 Good relations with distributors.
 Customer base not very knowledgeable.
 Fund manager one of the best in the country.
 An environment being created
 Favoring investment in the Mutual Fund industry
Weakness
 Poor marketing of the company.

 Poor performance of some funds.
 Competitive fund performance better in other asset management companies.
 People feel HDFC as a secondary asset management company.
 Lack of customer confidence in the company.
 Once new fund offer is over, no special push to pump in money in the company.
 It also becomes difficult to hold money in the company, as redemptions keep taking
place.
 No special offers given to distributors once fund offers finish.
Opportunities
 Tax rebate schemes can become very popular (ELSS).

 Company still needs to create a brand.
 Increasing FII flows into the Indian economy.
 Stock markets at All time highs.
 A very low rate of interest given by the bank.
 STP’s and SIP’s slowly becoming more popular in the Indian markets.
 Long term capital gains does not exist.
 Retail instruments are less cost
 Effective, in terms of returns.
 Lack of penetration in Customer base.

Threats
 Political Environment.
 Existence of Rivals.
 Threats of new entrants. e.g. Fidelity.
 Competitive companies offering better products. e.g. Franklin Prima.
 Competitive companies offering incentive to distributor to attract better funds.
 Difficult for a new asset management company to settle into the Indian markets.
 The cycle for returns in a mutual fund is time based and so till the deposit is not made for
a longer time the company does not make much money thereby making it difficult for the
company to make money.
 Portfolio management services are a big threat (Unit link).
 Mis-selling is a threat.
INDUSTRY PROFILE
Indian Mutual Fund industry’s Average Assets Under Management (AAUM) has crossed
a landmark of Rs. 25 Lakh Crore
Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the
month of April 2019 has crossed a landmark of Rs.25 Lakh Crore and stood at Rs.25,27,633
crore
Assets Under Management (AUM) as on April 30, 2019 stood at Rs.24,78,757 crore.
The AUM of the Indian MF Industry has grown from Rs.5.94 trillion as on 30th April,
2009 to Rs.24.79 trillion as on 30th April, 2019, more than 4 fold increase in a span of 10 years.
The MF Industry’s AUM has grown from Rs.9.45 trillion as on 30th April, 2014 to Rs.24.79
trillion as on 30th April, 2019, more than 2 ½ fold increase in a span of 5 years.
The Industry’s AUM had crossed the milestone of Rs.10 Trillion Rs.10 Lakh Crore) for the first
time in May 2014 and in a short span of about three years, the AUM size had increased more
than two folds and crossed Rs.20 trillion Rs.20 Lakh Crore) for the first time in August 2017.
The Industry AUM stood at Rs.24.79 Trillion Rs.24.79 Lakh Crore) as on 30th April, 2019.
The total number of accounts (or folios as per mutual fund parlance) as on April 30, 2019 stood
at 8.27 crore (82.7 million), while the number of folios under Equity, Hybrid and Solution

Oriented Schemes, wherein the maximum investment is from retail segment stood at 7.47 crore
(74.7 million). This is 59th consecutive month witnessing rise in the no. of folios.
'Huge growth potential for mutual fund industry in India'
The country’s mutual fund industry has a huge growth potential as Indian households’
savings amount to Rs 20-30 lakh crore, top official of an asset management company said today.
“We are already witnessing a gradual shift in household savings as dominance of
physical savings (real estate and gold) is going down, while share of financial savings is
growing,” HDFC AMC Managing Director Milind Barve told reporters here while launching the
company’s initial public offer.
Barve highlighted the fact that India lags most major nations of the world in terms of
assets under management (AUM) of mutual funds as a percentage of gross domestic product
(GDP).
In India, asset base of mutual funds as a percentage of GDP is just 11 per cent, while the
world average is 62 per cent.
“When it comes to the share of MFs in the market capitalisation, it is less than 5 per cent
in India, which only proves the huge market potential,” he said. “India has a very saving culture
as Indians save Rs 20-30 lakh crore every year, which indicates immense scope for channelising
this saving into MF industry,” he added.
The country has 42 mutual fund houses managing assets to the tune of over Rs 23 lakh
crore. Speaking about the upcoming IPO, Barve said HDFC Asset Management Company
(AMC) will launch its Rs 2,800 crore initial share-sale on July 25. The price band has been fixed
at Rs 1,095-1,100 per share.
The proposed IPO offers up to 2.54 crore equity shares of the fund house through an offer
for sale of 85.92 lakh shares (4.08 per cent stake) by HDFC and up to 1.68 crore shares (7.95 per
cent holding) by Standard Life. HDFC AMC operates as a joint venture between Housing
Development Finance Corporation (HDFC) and Standard Life Investments.
The fund house, which has a total AUM of over Rs 3 lakh crore at the end of March, is
the country’s second largest fund house after ICICI Prudential AMC that has an asset base of Rs
3.06 lakh crore. It will become the second AMC to hit the markets after Reliance Nippon Life
AMC, which had raised Rs 1,542 crore last year.

Indian mutual funds beat global growth pace by over 100%
Assets managed by the Indian MF industry grew to 23.96 trillion in July 2018, up 17.33%
from the previous year
In the last 10 years, India’s mutual fund industry has grown 12.5% annually on average,
outperforming the growth clocked by the world and developed regions by more than double,
according to a report by the Association of Mutual Funds of India (Amfi) and global analytics
firm Crisil. During the same period, Asia-Pacific including India, grew at just 8%.
Assets managed by the Indian MF industry grew to ₹ 23.96 trillion in July this year, up

17.33% from the previous year. “Around the same time last year, there was a rising equity
market, low rates on traditional investment products like deposits, a high decibel investor
awareness campaign from Amfi and a fine job from the retail distribution community in bringing
investors through the SIP route, all of which contributed towards the growth of the industry,"
said Ajit Menon, executive director and chief business officer, DHFL Pramerica Asset Managers
Pvt. Ltd.
The growth in MFs also points to various trends domestically.
Share of MFs in markets goes up: The share of MFs in the amount flowing into the
capital markets through portfolio investments rose to 18.4% in March 2018 from 8.5% in 2014.
On the other hand, the share of foreign portfolio investors or FPIs (of the total institutional
holding) fell to 56.4% from 61.8% of market capitalisation during the same period.
“During the period, domestic investors became bigger than before, particularly after
demonetisation. Due to fall in interest rates, investors moved to equities from fixed-income
assets. So the impact or mix of FPIs lowered," said S. Krishnakumkar, chief investment officer,
Sundaram Mutual.
VinitSambre, head of equities at DSP BlackRock Investment Managers Ltd, said, “Rising
valuation and risk aversion towards emerging markets is making FPIs nervous."
More savings in MFs :
Of the total financial savings and assets in the country, the share of MFs has increased in
the last three years to 14% in March this year from 10% in 2016. In the overall debt market,
banks and insurance companies still continue to dominate and invest a major chunk of their

money in government securities. The corporate debt market, however, receives its highest share
from MFs at 34.9%.
Among open-ended funds, 50% of total investment was made in debt funds, followed by
30% in equities and 14% in hybrid funds. “We have seen interest rates steadily rising towards the
second half of last year and into this year. As rising yields have an inverse relationship to price,
subdued returns on existing investments and uncertainty on the future trajectory of rates
prompted corporate investors and HNIs to move investments from longer duration debt funds to
liquid-money market funds," said Menon.
SIPs score :
In recent years, there has been a dramatic increase in the number of SIP accounts,
indicating better understanding of the compounding nature of mutual fund investments through
monthly regular installments. The industry has seen large-scale adoption of SIPs, especially
through retail investors. The number of SIP accounts has more than doubled in the last two years.
Number of individual investors up :
The last year, ending July 2018, recorded a rise in the number of individual investors in
MFs; they make for more than half of the assets. As of March, the industry had about 71 million
individual folios, of which 67 million were retail folios, said the report. In the past one year, 16
million retail folios were added, equal to the total number added in the preceding three years.

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Selected Equity funds comparison
Large Cap Funds
Table 4.1
Scheme Name AuM (Cr) NAV 52W High 52W

Low
HDFC Top 100 Fund – Growth 16704.61 500.907 506.458 428.185
Analysis:
From the above table we can see that the HDFC Top 100 Fund – Growth of AuM is about
16704.61, NAV is about 500.907, 52W High is about 506.458 and 52W Low is about 428.185
Graph 4.1
HDFC Top 100 Fund – Growth

520 500.91 506.46
500
480
460
440 428.19
420
400
380
NAV 52W High 52W Low
HDFC Top 100 Fund – Growth
Interpretation:
From the above graph we can see that in the HDFC top 100 fund scheme there is major
investment at 52W high. Neutral result at NAV. But there is a highest lowest investment at 52W
low.

Returns
Table 4.2
Scheme Name 1W 6M 1Y 2Y 3Y 5Y
HDFC Top 100 Fund - Growth 3.95% 9.42% 14.88% 9.19% 17.06% 11.17%
Analysis:
From the above table we can see that the HDFC Top 100 Fund - Growth one week is about
3.95%, for 6 months is about 9.42%, for one year is about 14.88% ,for two years it was about
9.19%, for three year it was about 17.06% and for the 5 years it was about 11.17%
Graph 4.2
HDFC Top 100 Fund - Growth

18.00% 17.06%
16.00% 14.88%
14.00%
12.00% 11.17%
10.00% 9.42% 9.19%
8.00%
6.00%
3.95%
4.00%
2.00%
0.00%
1W 6M 1Y 2Y 3Y 5Y
HDFC Top 100 Fund - Growth
Interpretation:
From the above graph we can see that HDFC top 100 fund has been decreasing for one
week. It stood with highest figure for one year. However we can see that highest growth in last
three years.

Table 4.3

Low
Kotak Bluechip Fund 1445.54 222.215 257.755 218.977
Analysis:
From the above table we can see that the Kotak Bluechip Fund of AuM is about 1445.54,
NAV is about 222.215, 52W High is about 257.755 and 52W Low is about 218.977
Graph 4.3
Kotak Bluechip Fund

1600
1445.54
1400
1200
1000
800
600
400
257.76 218.98
200
0
Kotak Bluechip Fund
Interpretation:
From the above graph we can see that Kotak Bluechip fund scheme has a 52 week high
figure of about 257.75 and has a low of about 219.977Returns

Table 4.4
Kotak Bluechip Fund -6.58% -1.41% -2.05% 1.54% 5.16% 4.69%
Analysis:
From the above table we can see that the Kotak Bluechip Fund one week is about -6.58%,
for 6 months is about -1.41%, for one year is about -2.05%, for two years it was about 1.54%,
for three year it was about 5.16% and for the 5 years it was about 4.69%
Graph 4.4
Kotak Bluechip Fund

6.00% 5.16% 4.69%
4.00%
2.00% 1.54%
0.00%
1W 6M 1Y 2Y 3Y 5Y
-2.00% -1.41%
-2.05%
-4.00%
-6.00%
-6.58%
-8.00%
Kotak Bluechip Fund
Interpretation:
From the above graph we can see that Kotak Bluechip fund has been decreasing for the
past week, 6 months and a year return. However it has given a good return in 3 years though the
5 years return is a little less.

Table 4.5

Low
ICICI Prudential Bluechip Fund - 21846.44 42.44 43.38 37.86

Growth
Analysis:
From the above table we can see that the ICICI Prudential Bluechip Fund - Growth of
AUM is about 21846.44, NAV is about 42.44, 52W High is about 43.38 and 52W Low is about
37.86
Graph 4.5
ICICI Prudential Bluechip Fund - Growth

44 43.38
43 42.44
42
41
40
39
37.86
38
37
36
35
Interpretation:
From the above graph we can see that the neutral growth for NAV at ICICI prudential
bluechip fund scheme. But there is drastic growth at 52W high. Also lowest figure showing for
52W low.

Table 4.6
ICICI Prudential Bluechip Fund 3.45% 6.28% 7.50% 9.35% 14.91% 12.28%
- Growth
Analysis:
From the above table we can see that the ICICI Prudential Bluechip Fund - Growth one
week is about 3.45%, for 6 months is about 6.28%, for one year is about 7.50%, for two years it
was about 9.35%, for three year it was about 14.91% and for the 5 years it was about 12.28%
Graph 4.6

16.00% 14.91%
14.00%
12.28%
12.00%
10.00% 9.35%
8.00% 7.50%
6.28%
6.00%
4.00% 3.45%
2.00%
0.00%
1W 6M 1Y 2Y 3Y 5Y
Interpretation:
From the above graph we can see that we can see that the ICICI prudential bluechip
growth has been increasing for one week comparing to last six months. It stood highest figure for
last three years.

Table 4.7
Scheme Name AuM (Cr) NAV 52W High 52W Low
Axis Bluechip Fund – Growth 5143.58 29.24 29.39 24.49
Analysis:
From the above table we can see that the Axis Bluechip Fund – Growth of AuM is about
Graph 4.7
Axis Bluechip Fund – Growth

35
30 29.24 29.39
24.49
25
20
15
10
0
Axis Bluechip Fund – Growth
Interpretation:
From the above graph we can see that there is same growth in NAV and 52W high at axis
bluechip fund. However we can see that 52W low has lowest figure comparing both.
Table 4.8

Axis Bluechip Fund - Growth 5.39% 11.81% 11.73% 15.88% 16.31% 12.54%
Analysis:
From the above table we can see that the Axis Bluechip Fund - Growth for one week is
about 5.39%, for 6 months is about 11.81%, for one year is about 11.73%, for two years it was
about 15.88%, for three year it was about 16.31% and for the 5 years it was about 12.54%
Graph 4.8
Axis Bluechip Fund - Growth

18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
1W 6M 1Y 2Y 3Y 5Y
Axis Bluechip Fund - Growth
Interpretation:
From the above graph we can see that investments at the axis bluechip fund have growing
slowly. But it stood major figure for last two years. We can see that there is decreasing figure for
one year.

Mid Cap Funds
Table 4.9
Axis Midcap Fund - Growth 2281.52 35.86 38.3 32.03
Analysis:
From the above table we can see that the Axis Midcap Fund - Growth of AuM is about
Graph 4.9
Axis Midcap Fund - Growth

40
38.3
38
35.86
36
34
32.03
32
30
28
Axis Midcap Fund - Growth
Interpretation:
From the above graph we can see that drastic growth at 52W high in axis midcap fund
scheme. 52W low is slowly increasing but NAV stayed neutral

Returns
Table 4.10
Axis Midcap Fund – Growth 3.52% 6.79% 4.43% 13.15% 14.33% 14.33%
Analysis:
From the above table we can see that the Axis Midcap Fund – Growth for one week is about
3.52%, for 6 months is about 6.79%, for one year is about 4.43%, for two years it was about
13.15%, for three year it was about 14.33% and for the 5 years it was about 14.33%
Graph 4.10
Axis Midcap Fund – Growth

16.00%
14.33% 14.33%
14.00% 13.15%
12.00%
10.00%
8.00%
6.79%
6.00%
4.43%
4.00% 3.52%
2.00%
0.00%
1W 6M 1Y 2Y 3Y 5Y
Axis Midcap Fund – Growth
Interpretation:
From the above graph we can see that investments in axis midcap fund have been
decreasing for last one year. It stood highest figure for last two years.

Table 4.11
Kotak Emerging Equity – 6,848.32 41.921 47.602 37.863

Growth
Analysis:
From the above table we can see that the Kotak Emerging Equity – Growth of AuM is about
6,848.32, NAV is about 41.921, 52W High is about 47.602 and 52W Low is about 37.863
Graph 4.11
Kotak Emerging Equity – Growth

8,000.00
7,000.00 6848.32
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
47.6 37.86
0.00
Interpretation:
From the above graph we can see that the Kotak emerging equity growth mutual fund has
not been showing a good growth and both 52 week high and 52 week low figures are drastically
coming down.

Returns
Table 4.12
Kotak Emerging Equity – Growth -5.53% 5.65% 1.47% -0.69% 5.25% 8.13%
Analysis:
From the above table we can see that the Kotak Emerging Equity – Growth for one week is about
-5.53%, for 6 months is about 5.65%, for one year is about 1.47%, for two years it was about
-0.69%, for three year it was about 5.25% and for the 5 years it was about 8.13%
Graph 4.12

10.00%
8.13%
8.00%
6.00% 5.65% 5.25%
4.00%
2.00% 1.47%
0.00%
1W 6M 1Y 2Y 3Y 5Y
-0.69%
-2.00%
-4.00%
-6.00% -5.53%
-8.00%
Interpretation:
From the above graph we can see that the Kotak emerging equity grown plan is not doing very
well over the years. It had given a good return in 5 years average but for the 1 year and 2 years it
has been showing a very low figure.

Selected Debt funds Comparison
Short Duration Funds
Table 4.13

Low
IDFC Bond Fund - Short Term - Regular 6985.44 38.3512 38.3518 35.2183
Plan – Growth
Analysis:
From the above table we can see that the IDFC Bond Fund - Short Term - Regular Plan –
Growth of AuM is about 6985.44, NAV is about 38.3512, 52W High is about 38.3518 and 52W
Low is about 35.2183
Graph 4.13
IDFC Bond Fund - Short Term - Regular Plan – Growth

39
38.35 38.35
38
37
36
35.22
35
34
33

Interpretation:
From the above graph we can see that there is almost same figure for growth of NAV and
52W high in the scheme of IDFC bond fund short term regular plan. But 52W high stood with
highest figure comparing to both
Returns
Table 4.14
IDFC Bond Fund - Short Term - Regular 0.32% 4.87% 8.91% 6.78% 7.13% 7.79%
Plan – Growth
Analysis:
From the above table we can see that the IDFC Bond Fund - Short Term - Regular Plan –
Growth for one week is about 0.32%%, for 6 months is about 4.87%, for one year is about
8.91%, for two years it was about 6.78%, for three year it was about 7.13% and for the 5 years it
was about 7.79%

Graph 4.14

10.00%
8.91%
9.00%
8.00% 7.79%
7.13%
7.00% 6.78%
6.00%
4.87%
5.00%
4.00%
3.00%
2.00%
1.00% 0.32%
0.00%
1W 6M 1Y 2Y 3Y 5Y
Interpretation:
From the above graph we can see that investments in IDFC bond fund have been
increasing for one year. It was lowest figure for two figure there is less growth in investments. It
stood with large figure for past five years. But highest growth is for one year
Table 4.15

Low
Kotak Bond Short Term Plan - Growth 11559.57 40.0707 40.1155 36.2595

Analysis:
From the above table we can see that the Kotak Bond Short Term Plan - Growth of AuM
is about 11559.57, NAV is about 40.0707, 52W High is about 40.1155 and 52W Low is about
36.2595
Graph 4.15
Kotak Bond Short Term Plan - Growth

41
40.07 40.12
40
39
38
37
36.26
36
35
34
Kotak Bond Short Term Plan - Growth
Interpretation:
From the above graph we can see that there is almost same figure for growth of NAV and
52W high in the scheme of Kotak Bond Short Term Plan – Growth plan. But 52W high stood
with highest figure comparing to both

Returns
Table 4.16
-0.07% 4.29 %
Kotak Bond Short Term Plan – 9.95%
8.57% 7.54% 7.90%
Growth
Analysis:
From the above table we can see that the Kotak Bond Short Term Plan – Growth for one
week is about -0.07%, for 6 months is about 4.29 %, for one year is about 9.95%, for two years it
Graph 4.16
Kotak Bond Short Term Plan – Growth

12.00%
9.95%
10.00%
8.57%
7.90%
8.00% 7.54%
6.00%
4.29%
4.00%
2.00%
0.00%
1W
-0.07% 6M 1Y 2Y 3Y 5Y
-2.00%
Kotak Bond Short Term Plan – Growth

Interpretation:
From the above graph we can see that investments in Kotak Bond Short Term Plan –
Growth fund have been increasing after one year. It has a lowest figure for the 1 week and 6
months data and highest figure happens to be a year return data.
Table 4.17

Low
HDFC Short Term Debt Fund – Growth 7680.53 20.805 20.805 19.182
Analysis:
From the above table we can see that the HDFC Short Term Debt Fund – Growth of
AuM is about 7680.53, NAV is about 20.805, 52W High is about 20.805 and 52W Low is about
19.182

Graph 4.17
HDFC Short Term Debt Fund – Growth

21 20.81 20.81
20.5
20
19.5
19.18
19
18.5
18
Interpretation:
From the above graph we can see that in the scheme of HDFC short term debt fund there
is slow growth at 52W low. But we can see that largest growth at both NAV and 52W high. And
both stayed with same figure.

Returns
Table 4.18
HDFC Short Term Debt Fund – Growth 0.27% 4.44% 8.50% 7.06% 7.54% 8.19%
Analysis:
From the above table we can see that the HDFC Short Term Debt Fund – Growth for one
week is about 0.27%, for 6 months is about 4.44%, for one year is about 8.50%, for two years it
Graph 4.18

9.00% 8.50%
8.19%
8.00% 7.54%
7.06%
7.00%
6.00%
5.00% 4.44%
4.00%
3.00%
2.00%
1.00%
0.27%
0.00%
1W 6M 1Y 2Y 3Y 5Y
Interpretation:

From the above graph we can see that highest growth for one year in the scheme of
HDFC short term debt fund. It is slow growing for one week. However for last two years it stood
with lowest figure.
Gilt Funds
Table 4.19
IDFC G Sec Fund - Investment Plan - 422.08 22.5823 22.5823 20.0935

Regular Plan – Growth
Analysis:
From the above table we can see that the IDFC G Sec Fund - Investment Plan - Regular
Plan – Growth of AUM is about 422.08, NAV is about 22.5823, 52W High is about 22.5823 and
52W Low is about 20.0935
Graph 4.19

IDFC G Sec Fund - Investment Plan - Regular Plan – Growth

23
22.58 22.58
22.5
22
21.5
21
20.5
20.09
20
19.5
19
18.5
Interpretation:
From the above graph we can see that highest investments at both NAV and 52W high
for IDFC G Se fund investment plan. Both have same figure. And we can see that lowest figure
for 52W low.

Returns
Table 4.20
IDFC G Sec Fund - Investment Plan - 0.86% 6.90% 11.86% 6.04% 8.40% 9.22%
Regular Plan – Growth
Analysis:
From the above table we can see that the IDFC G Sec Fund - Investment Plan - Regular
Plan – Growth for one week is about 0.86%, for 6 months is about 6.90%, for one year is about
11.86%, for two years it was about 6.04%, for three year it was about 8.40% and for the 5 years
it was about 9.22%
Graph 4.20

14.00%
11.86%
12.00%
10.00% 9.22%
8.40%
8.00%
6.90%
6.04%
6.00%
4.00%
2.00%
0.86%
0.00%
1W 6M 1Y 2Y 3Y 5Y

Interpretation:
From the above graph we can see that highest investment for one year at the scheme of
IDFC G sec fund investment plan. Comparing to last years it is greatest result in this scheme. But
there is low figure for the period of one week.

CHAPTER 5
FINDINGS SUGGESTION AND CONCLUSION
FINDINGS
1. The HDFC top 100 fund scheme there is major investment at 52W high. Neutral result at
NAV. But there is a highest lowest investment at 52W low.
2. It has been decreasing for one week. It stood with highest figure for one year. However
we can see that highest growth in last three years.
3. The neutral growth for NAV at ICICI prudential bluechip fund scheme. But there is
drastic growth at 52W high. Also lowest figure showing for 52W low.
4. ICICI prudential bluechip growth has been increasing for one week comparing to last six
months. It stood highest figure for last three years.
5. There is same growth in NAV and 52W high at axis bluechip fund. However we can see
that 52W low has lowest figure comparing both
6. Axis bluechip fund have growing slowly. But it stood major figure for last two years. We
can see that there is decreasing figure for one year.
7. Drastic growth at 52W high in axis midcap fund scheme. 52W low is slowly increasing
but NAV stayed neutral
8. Investments in axis midcap fund have been decreasing for last one year. It stood highest
figure for last two years
9. Almost same figure for growth of NAV and 52W high in the scheme of IDFC bond fund
short term regular plan. But 52W high stood with highest figure comparing to both
10. IDFC bond fund have been increasing for one year. It was lowest figure for two figure
there is less growth in investments. It stood with large figure for past five years. But
highest growth is for one year
11. The scheme of HDFC short term debt fund there is slow growth at 52W low. But we can
see that largest growth at both NAV and 52W high. And both stayed with same figure
12. Highest growth for one year in the scheme of HDFC short term debt fund. It is slow
growing for one week. However for last two years it stood with lowest figure

13. Highest investments at both NAV and 52W high for IDFC G Se fund investment plan.
Both have same figure. And we can see that lowest figure for 52W low.
14. Highest investment for one year at the scheme of IDFC G sec fund investment plan.
Comparing to last years it is greatest result in this scheme. But there is low figure for the
period of one week
15.

SUGGESTIONS
Investment is the technique by which people save the money for future and increase their
living standard. Many investors don’t know and don’t want to take more risk by investing in
shares and securities therefore mutual funds are better instrument to save their money for future
and provide better returns
o Direct Equity Investment versus Mutual fund Investing Investors have the option
to invest directly in equities through the stock market instead of investing through
mutual funds. However, a practical evaluation reveals that mutual funds are indeed
more recommended option for the individual investor.
o Investors should follow Systematic Investment Plan (SIP) to beat the market SIP
is an investment strategy that combines simplicity, risk reduction and affordability. It as
an ideal way to space out one’s purchase and avoid paying in lump sum
o Identify your investment needs. Your financial goals will vary, based on your age
lifestyle, financial independence, family commitments, level of income and expenses
many other factors.
o Choose the right mutual fund. Once you have clear strategy in mind, you now
have to choose which mutual fund and scheme you want to invest in. The offer
document of the scheme tell you its objectives and provided supplementary details like
the track record of other schemes managed by the same fund manger
o Select the ideal mix of schemes Investing in just one Mutual Fund scheme may
not meet all your investment needs. You may consider investing in a combination of
schemes to achieve your specific goals. The following charts could prove useful in
selecting a combination of schemes that satisfy your needs.

CONCLUSION
Mutual funds offer a wide product range, convenience, tax-efficiency and other facilities
to successfully implement a financial plan, these influence lot of investors to invest in mutual
funds, also there is hectic competition has been arisen in the capital market. Different scheme
providers provide different facilities and follow innovative promotional techniques to attract the
new customers to sellout their products.
Comparatively performance of mutual fund scripts has to be analyzed properly.

Companies, regulating bodies such BSE, NSE, UTI have to arrange various tools, methods to
analyze the performance of the mutual funds which are in trade, and the right results, information
to be transparent to all the investors who hold the mutual funds units.
Implementation of technological techniques in measuring performance, risk and return,

portfolio selections, units allotted process will provide accurate results about the position of
scheme in the market that will induce the investors to invest on mutual fund schemes.

BIBLIOGRAPHY
1. Agarwal, G.D., 1992, "Mutual Funds and Investors Interest", Chartered Secretary, Vol.22,

No.1, 23-24.
2. Ajay Srinivasan, 1999, "Mutual Funds: The New Era", Chartered Secretary, Sept.,A 262.
3. Gupta, L.C., 1994, Mutual Funds and Asset Preference, Society for Capital Market
Research and Development, Delhi.
4. Ippolito, R., 1992, "Consumer reaction to measures of poor quality: Evidence from Mutual
Funds", Journal of Law and Economics, 35, 45-70.
5. Madhusudan V. Jambodekar, 1996, Marketing Strategies of Mutual Funds – Current
Practices and Future Directions, Working Paper, UTI – IIMB Centre for Capital Markets
Education and Research, Bangalore.
6. Shankar, V., 1996, "Retailing Mutual Funds: A consumer product model", TheHindu, July
24, 26.
7. Shanmugham, R., 2000, "Factors Influencing Investment Decisions", Indian Capital
Markets – Trends and Dimensions (ed.), Tata McGraw-Hill PublishingCompany Limited,
New Delhi, 2000.
8. Vidya Shankar, S., 1990, "Mutual Funds – Emerging Trends in India", Chartered
Secretary, Vol.20, No.8, 639-640

ANNEXURE
Financial Statements of the HDFC Asset Management Company
BALANCE SHEET OF HDFC ASSET MANAGEMENT COMPANY (in Rs. Cr.)
2019 2018
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 106.29 105.28
TOTAL SHARE CAPITAL 106.29 105.28
Reserves and Surplus 2,955.05 2,138.99
TOTAL RESERVES AND SURPLUS 2,955.05 2,138.99
TOTAL SHAREHOLDERS FUNDS 3,070.59 2,253.91
NON-CURRENT LIABILITIES
Long Term Borrowings 0.00 0.00
Deferred Tax Liabilities [Net] 2.84 4.22
Other Long Term Liabilities 36.13 34.89

Long Term Provisions 1.01 0.89
TOTAL NON-CURRENT LIABILITIES 39.98 40.00
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00
Trade Payables 47.36 111.58
Other Current Liabilities 65.69 66.65
Short Term Provisions 0.00 0.00
TOTAL CURRENT LIABILITIES 113.05 178.23
TOTAL CAPITAL AND LIABILITIES 3,223.75 2,472.14
ASSETS
NON-CURRENT ASSETS
Tangible Assets 25.63 21.88
Intangible Assets 14.07 9.05
Capital Work-In-Progress 0.00 0.00
Other Assets 0.00 0.00
FIXED ASSETS 42.87 36.89
Non-Current Investments 0.00 0.00

Deferred Tax Assets [Net] 0.00 0.00
Long Term Loans And Advances 0.00 0.00
Other Non-Current Assets 83.09 250.10
TOTAL NON-CURRENT ASSETS 125.96 286.99
CURRENT ASSETS
Current Investments 2,934.96 2,057.74
Inventories 0.00 0.00
Trade Receivables 102.86 102.98
Cash And Cash Equivalents 31.99 2.06
Short Term Loans And Advances 0.00 0.00
OtherCurrentAssets 27.98 22.37
TOTAL CURRENT ASSETS 3,097.79 2,185.15
TOTAL ASSETS 3,223.75 2,472.14

PROFIT & LOSS ACCOUNT OF HDFC ASSET MANAGEMENT COMPANY (in Rs.

Cr.)
2019 2018
INCOME
REVENUE FROM OPERATIONS [GROSS] 1,915.18 1,756.77
Less: Excise/Sevice Tax/Other Levies 0.00 0.00
REVENUE FROM OPERATIONS [NET] 1,915.18 1,756.77
TOTAL OPERATING REVENUES 1,915.18 1,756.77
Other Income 181.60 113.00
TOTAL REVENUE 2,096.78 1,869.77
EXPENSES
Cost Of Materials Consumed 0.00 0.00
Operating And Direct Expenses 240.26 326.99
Changes In Inventories Of FG,WIP And Stock-In Trade 0.00 0.00
Employee Benefit Expenses 206.27 186.10
Finance Costs 0.00 0.00

Depreciation And Amortisation Expenses 12.85 9.36
Other Expenses 222.70 289.09
TOTAL EXPENSES 722.08 811.54

A Study On Performance Analysis of Selected Banking Mutual Fund

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“A STUDY ON PERFORMANCE ANALYSIS OF SELECTED BANKING MUTUAL FUNDS”

What Is a Mutual Fund?

A mutual fund is a type of financial vehicle made up of a pool of money collected from

The Basics of a Mutual Fund

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 1

Types of Mutual Funds:

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 2

Money Market Funds :

Tax Saving Schemes :

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 3

Industry Specific Schemes :

RISKS ASSOCIATED WITH MUTUAL FUNDS

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 4

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 5

Tax deducted at source:

Income from units:

Income distribution tax:

Mutual funds offer three methods of receiving income:

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 6

Dividend re-investment plan:

Net asset value (NAV)

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 7

Details on the above items:

What is the difference between Equity and Debt fund?

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 8

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 9

TITLE OF THE STUDY

“A study on performance analysis of selected banking mutual funds with special

NEED FOR THE STUDY

STATEMENT OF THE PROBLEM.

OBJECTIVES OF THE STUDY

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 10

 To compare the performance of mutual fund schemes of selected banking companies on

SCOPE OF THE STUDY

ANALYSIS TOOLS USED

Trend signifies tendency. Therefore, review and appraisal of tendency in accounting

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 11

1. Details were obtained from company files ,records and documents

2. Various published books, journals and news papers

3. Web pages of NSE, BSE

LIMITATIONS OF THE STUDY

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 12

CHAPTER 2 : RESEARCH DESIGN

CHAPTER 3 : COMPANY PROFILE

CHAPTER 4 : DATA ANALYSIS AND INTERPRETATION

CHAPTER 5 : FINDINGS CONCLUSION AND SUGGESTION

A Study of performance of mutual fund has become more controversial. Conversely

Dr.R.Narayanasamy, V Rathnamani, (2013) evaluate the performance of selected

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 13

Dr.S. Narayanrao,(2003) evaluate the performance evaluation of Indian mutual funds in

Dr. Shriprakashsoni, Dr. Deepalibankapue, Dr. Maheshbhutada, (2015)comparative

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 14

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 15

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 16

HDFC Asset Management Company Limited (AMC) :

Housing Development Finance Corporation Limited 59.98

Standard Life Investments Limited 39.99

Other Shareholders (shares issued on exercise of Stock 0.03

ACHARYA INSTITUTE OF GRADUATE STUDIES Page 17

Former Name New Name

Zurich India Equity Fund HDFC Equity Fund

Zurich India Prudence Fund HDFC Prudence Fund

Zurich India Capital Builder Fund HDFC Capital Builder Fund