Chapter 1: Introduction

SYSTEMATIC INVESTMENT PLAN (SIP)

The Systematic Investment Plan (SIP) is a simple and time honored investment strategy for accumulation of wealth in a disciplined manner over long term period. The plan aims at a better future for its investors as an SIP investor gets good rate of returns compared to a one time investor. A specific amount should be invested for a continuous period at regular intervals under this plan. SIP is similar to a regular saving scheme like a recurring deposit. It is a method of investing a fixed sum regularly in a mutual fund. SIP allows the investor to buy units on a given date every month. While the investor's investment remains the same, more number of units can be bought in a declining market and less number of units in a rising market. The investor automatically participates in the market swings once the option for SIP is made. SIP ensures averaging of dollar cost as consistent investment ensures that average cost per unit fits in the lower range of average market price. An investor can either give post dated cheques or credit card instruction and the investment will be made regularly in the mutual fund desired for the required amount. SIP generally starts at minimum amounts of $300 per month and upper limit could be as you may choose.

SCOPE OF STUDY
A big boom has been witnessed in Mutual Fund Industry in resent times. A large number of new players have entered the market and trying to gain market share in this rapidly improving market. The research was carried on in Varanasi. I had been sent at one of the branch of HDFC AMC LTD. Varanasi where I completed my Project work. I surveyed on my Project Topic Awareness of systematic plan amongst investors. on the visiting customers of the HDCF AMC Varanasi. Study will help to know awareness of SIP in the customers, which company, portfolio, mode of investment, option for getting return and so on they prefer. This project report may help the company to make further planning and strategy.
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Chapter 2: Industry Overview

History of Mutual Fund Industry

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly divided into four distinct phases: First phase 1964-87(Monopoly of UTI) An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under management. Second Phase 1987-93(Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), and Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores. Third Phase 1993-2003(Entry of Private Sector Funds With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed
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several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds. Forth Phase Since February 2003 In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of October 31, 2003, there were 31 funds, which manage assets of Rs.126726 crores under 386 schemes. Mutual funds have played a significant role in financial intermediation, the development of capital markets and the growth of the Indian Economy. The Indian mutual fund industry has been no exception. Though it is relatively new, it has grown at a dynamic speed, influencing various sectors of the financial market and the national economy. The Indian economy is under transition on account of the on going structural adjustment programs and liberalization. The corporate sector and the investment community play a major role in the markets today. Economic transition is usually marked by changes in the market mechanics, institutional integration, market regulations, relocation of savings and investments and changes in inter-scrotal relationships.

Customers Profile of Mutual Fund Industry

(Type of Customers)

1. While you recommend a financial plan, you also need to understand the needs and financial objectives of your customer along with his risk tolerance and his expectations from the investments. 2. Honest and straightforward advice is appreciated. Help your customers make the right choice. 3. Advise your customers to start investing early and regularly to help them optimize the benefits of the compounding rupee. 4. Help your investors with the procedures and paper work involved in making an investment. Treat every customer exclusively. A satisfied customer can give you increased business through resale and referrals of other prospective customers.

Positioning Strategy of Mutual Fund Industry

Positioning starts with a product. But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of prospect. A companys differentiating and positioning strategy must change as the product, market, and competitors change over time. . There should be no under positioning, over positioning, confused positioning or doubtful positioning.

Channels of Distribution
In Every asset Management Companys distribution channel played very important roles. Here assets management companies have distributors like : Consultants Agents Distributors Advisers Broker Their role is very important for Assets Management Companys Office. Promotional Tools Employed by Mutual Fund Companies Some specific other documents help to increase selling product like: (1) Banners: Banners define brief idea of scheme, it should be very attractive with specific objective & its related picture in city, and Banners keep in specific places which very help to do good publicity. It distributes only by AMCs office. When any new scheme is launched or any new NFO coming up that times company make banners before few days. Its helps to good advertising & easy cover to customer or people.

(2) Application Form: Any product like Equity, debt and balance, investor should fill up its common Application forms. Form define acknowledge slip which give return to customer. Actually 3-time stamp done in form, one of them is acknowledged slip. These forms are distributed by Assets Management Companys office. It is all Assets Management Companys office duty to dispatch forms to their advisers time to time. (3) Broachers: Broachers include brief history of company. It defines when and where assets management Company invests investors money. This defines performance of each scheme product & also defines its comparison to last 3 months to more than 5 years. In end of every month Assets Management Companys office send Boucher to their investors, brokers, agents, advisers regularly. customer like agents, brokers, and

Chapter 3: Company Overview

Background and Objective of HDFC Group

Background HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.

Business Objectives The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets... Organizational Goals HDFCs main goals are to a) Develop close relationships with individual households, b) Maintain its position as the premier housing finance institution in the country, c) Transform ideas into viable and creative solutions, d) Provide consistently high returns to shareholders, and e) To grow through diversification by leveraging off the existing client base.

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Key Companies of HDFC group

HDFC Reality HDFC Bank HDFC Standard Life Insurance HDFC Mutual Fund HDFC Chubb General Insurance Credit Information Bureau (INDIA) Limited HDFC Securities HDFC Consultancy Services Intel net Global

HDFC-Asset Management Company An HDFC asset Management Company limited is well-established fund house. HDFC Assets Management Company limited is sponsored by Housing Development Finance Corporation Limited (HDFC) andhttp://www.standardlifeinvestments.com/ Standard life investments limited. HDFC assets Management Company limited launched its scheme HDFC EQUITY FUND in the year January 1995. Since then it focused on different class of schemes for many years and launched several innovative products that went to become bourgeoning categories in the Indian mutual fund industry. Some of these were HDFC GROWTH FUND, HDFC TOP 200 FUND, and HDFC BALANCED FUND, HDFC PRUDENCE FUND etc. HDFC assets Management Company limited have offices in 29 cities and currently manage assets in excess of Rs 75,406.10 cores. (May 2009) HDFC was incorporated in 1977 as the first specialized Mortgage Company in India. HDFC is a Premier Housing Finance 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

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valuation), training and consultancy. Of these activities, housing finance remains the dominant activity. HDFC has a client base of around 10 lac borrowers, around 10 lac depositors, over 1,23,000 shareholders and 50,000 deposit agents, as at March 31, 2009. The Company has a total asset size of Rs. 96,993 crore as at March 31, 2009 and cumulative approvals and disbursements of housing loans of Rs. 237,450 crore and Rs. 191,806 crore respectively as at March 31, 2009. 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 deposits program for the fourteenth year in succession.

STANDARD LIFE INVESTMENTS LIMITED Standard Life Investments Limited 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$ 169 billion as at March 31, 2009, Standard Life Investments Limited is one of the world's major investment companies and is responsible for investing money on behalf of five million retail and institutional clients worldwide. Standard Life Investments is a leading asset management company, with approximately US$ 169 billion of assets under management as at March 31, 2009. The company operates in the UK, Canada, Hong Kong, China, Korea, Ireland, Paris, Sydney and the USA to ensure it is able to form a truly global investment view. Board of Directors The Board of Directors of the HDFC Asset Management Company Limited (AMC) consists of the following eminent persons. Mr. Deepak S Parekh Mr. Hoshang S. Billimoria Mr. N. Keith Skeoch Mr. Humayun Dhanrajgir
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Ms. Renu S. Karnad Mr. Milind Barve Mr. Mark Connolly Mr. Rajeshwar Ram Bajaj Mr. P. M. Thampi Dr. Deepak Phatak

Product Details
Equity Schemes of HDFC

1. HDFC Equity Fund: Investment Objective: The investment objective of the Scheme is to achieve capital appreciation. Investment Options: Dividend & Growth Option Nature of Scheme: Open-ended Growth Scheme Inception Date: January 01, 1995

2. HDFC growth fund:-

Investment Objective: The primary investment objective of the Scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. Investment Options: Dividend & Growth Option Nature of Scheme: Open-ended Growth Scheme Inception Date: September 11, 2000

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3. HDFC Top 200 Fund: Investment Objective: To generate long-term capital appreciation from a portfolio of equity and equity-linked instruments primarily drawn from the companies in BSE 200 index. Investment Options: Dividend & Growth Option Nature of Scheme: Open-ended Growth Scheme Inception Date: October 11, 1996

4. HDFC Capital Builder Fund: Investment Objective: To generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of Small and Mid-Cap companies. Investment Options: Dividend & Growth Option Nature of Scheme: Open Ended Growth Scheme Inception Date: February 01, 1994

5. HDFC Core & Satellite Fund: Investment Objective: The primary objective of the Scheme is to generate capital appreciation through equity investment in companies whose shares are quoting at prices below their true value. Investment Options: Dividend & Growth Option Nature of Scheme: Open Ended Growth Scheme Inception Date: September 17, 2004

6. HDFC Premier Multi-Cap Fund: Investment Objective: The primary objective of the Scheme is to generate capital appreciation in the long term through equity investments by investing in a diversified portfolio of Mid Cap and Large Cap `blue chip` companies. Investment Options: Dividend Plan, Growth Plan, The Dividend Plan offers Dividend Payout and Reinvestment Facility.
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 Nature of Scheme: Open Ended Growth Scheme Inception Date: April 06, 2005

Balanced Schemes of HDFC

1. HDFC Balanced Fund: Investment Objective: The primary objective of the Scheme is to generate capital appreciation along with current income from a combined portfolio of equity and equity related and debt and money market instruments. Investment Options: Dividend & Growth Option Nature of Scheme: Open Ended balanced fund Inception Date: September 11, 2000

2. HDFC Prudence Fund: Investment Objective: The investment objective of the Scheme is to provide periodic returns and capital appreciation over a long period of time, from a judicious mix of equity and debt investments, with the aim to prevent/ minimize any capital erosion. Investment Options: Dividend & Growth Option Nature of Scheme: Open Ended balanced fund Inception Date: February 01, 1994

3. HDFC Short Term Plan: Investment Objective: - The primary objective of the HDFC Short Term Plan is to generate regular income through investment in Debt Securities and Money Market Instruments. Investment Options: Growth Plan, Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility. Nature of Scheme:- Open Ended income fund Inception Date: - February 28, 2002
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4. HDFC Multi Yield Fund : Investment Objective: The primary objective of the Scheme is to generate positive returns over medium time frame with low risk of capital loss over medium time frame. Investment Options: Growth Plan, Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility. Nature of Scheme: - Open Ended income fund Inception Date: - September 17, 2004

Debt Schemes of HDFC

1.

HDFC Income Fund:-

Investment Objective: - The primary objective of the Scheme is to optimize returns while maintaining a balance of safety, yield and liquidity. Investment Options: Dividend & Growth Option Nature of Scheme: - Open-ended Income Scheme Inception Date: - September 11, 2000

HDFC Income Fund: Investment Objective: - The investment objective of HDFC High Interest Fund is to generate income by investing in a range of debt and money market instruments of various maturity dates with a view to maximizing income while maintaining the optimum balance of yield, safety and liquidity. Investment Options: Dividend & Growth Option Nature of Scheme: - Open Ended Income Scheme Inception Date: - April 28, 1997

2.

HDFC MF Monthly Income Plan - Short Term Plan:-

Investment Objective: - The primary objective of Scheme is to generate regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a
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portion of the Schemes assets in equity and equity related instruments. However, there can be No assurance that the investment objective of the Scheme will be achieved. Investment Options: Quarterly Dividend Option, Monthly Dividend Option, and Growth Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility Nature of Scheme: - An open-ended income scheme. Monthly income is not assured and is subject to availability of distributable surplus Inception Date:- December 26, 2003

3.

HDFC MF Monthly Income Plan - Long Term Plan:-

Investment Objective: - The primary objective of Scheme is to generate regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Schemes assets in equity and equity related instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved Investment Options: Growth Plan, Quarterly Dividend Option, Monthly Dividend Option. The Dividend Plan offers Dividend Payout and Reinvestment Facility. Nature of Scheme: - An open-ended income scheme. Monthly income is not assured and is subject to availability of distributable surplus Inception Date: - December 26, 2003

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Chapter 4: Review of Literature / Theoretical Background (delete whichever is not applicable)

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HDFC MF SIP is similar to a Recurring Deposit. Every month on a specified date an amount you choose is invested in a mutual fund scheme of your choice. The dates currently available for SIPs are the 1st, 5th, 10th, 15th, 20th and the 25th of a month. Youll be amazed to learn about the many benefits of investing through HDFC MF SIP.

Become A Disciplined Investor

Being disciplined - Its the key to investing success. With the HDFC MF Systematic Investment Plan you commit an amount of your choice (minimum of Rs. 500 and in multiples of Rs. 100 thereof*) to be invested every month in one of our schemes. Think of each SIP payment as laying a brick. One by one, youll see them transform into a building. Youll see your investments accrue month after month. Its as simple as giving at least 6 postdated monthly cheques to us for a fixed amount in a scheme of your choice. Its the perfect solution for irregular investors. *Minimum amounts may differ for each Scheme.

Reach Your Financial Goal

Imagine you want to buy a car a year from now, but you dont know where the downpayment will come from. HDFC MF SIP is a perfect tool for people who have a specific, future financial requirement. By investing an amount of your choice every month, you can plan for and meet financial goals, like funds for a childs education, a marriage in the family or a comfortable postretirement life. The table below illustrates how a little every month can go a long way.

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Table A:Monthly Savings - What your savings may generate Savings per month (for 15 years) Total amount invested (Rs. in Lacs) 6.0% Rate of return 8.0% 10.0%

(rupees in lacs, 15 years later)* 5000 4000 3000 2000 1000 9.0 7.2 5.4 3.6 1.8 14.6 11.7 8.8 5.8 2.9 17.4 13.9 10.4 7.0 3.5 20.9 16.7 12.5 8.3 4.2

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

Disclaimer: The illustration above is merely indicative in nature and should not be construed as investment advice. It does not in any manner imply or suggest performance of any HDFC Mutual Fund Scheme(s).

Take Advantage of Rupee Cost Averaging

Most investors want to buy stocks when the prices are low and sell them when prices are high. But timing the market is time consuming and risky. A more successful investment strategy is to adopt the method called Rupee Cost Averaging. To illustrate this well compare investing the identical amounts through a SIP and in one lump sum.

Imagine Suresh invests Rs. 1000 every month in an equity mutual fund scheme starting in January. His friend, Rajesh, invests Rs. 12000 in one lump sum in the same scheme. The following table illustrate how their respective investments would have performed from Jan to Dec:

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Table B:Sureshs Investment Month Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 NAV 9.345 9.399 8.123 8.750 8.012 8.925 9.102 8.310 7.568 6.462 6.931 7.600 Amount 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 Units 107.0091 106.3943 123.1072 114.2857 124.8128 112.0448 109.8660 120.3369 132.1353 154.7509 144.2793 131.5789 Rajeshs Investment Amount 12000 Units 1284.1091

*NAV as on the 10th every month. These are assumed NAVs in a volatile market Disclaimer: The illustration above is merely indicative in nature and should not be construed as investment advice. It does not in any manner imply or suggest performance of any HDFC Mutual Fund Scheme(s). Rupee Cost Averaging neither ensures you profits nor protects you from making a loss in declining markets.

As seen in the table, by investing through SIP, you end up buying more units when the price is low and fewer units when the price is high. However, over a period of time these market fluctuations are generally averaged. And the average cost of your investment is often reduced.

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Grow Your Investment with Compounded Benefits

It is far better to invest a small amount of money regularly, rather than save up to make one large investment. This is because while you are saving the lump sum, your savings may not earn much interest.

With HDFC MF SIP, each amount you invest grows through compounding benefits as well. That is, the interest earned on your investment also earns interest. The following example illustrates this.

Imagine Neha is 20 years old when she starts working. Every month she saves and invests Rs. 5,000 till she is 25 years old. The total investment made by her over 5 years is Rs. 3 lakhs.Arjun also starts working when he is 20 years old. But he doesnt invest monthly. He gets a large bonus of Rs. 3 lakhs at 25 and decides to invest the entire amount. Both of them decide not to withdraw these investments till they turn 50. At 50, Nehas Investments have grown to Rs. 46,68,273* whereas Arjuns investments have grown to Rs. 36,17,084*. Nehas small contributions to a SIP and her decision to start investing earlier than Arjun have made her wealthier by over Rs. 10 lakhs.

Do All This Effortlessly

Investing with HDFC MF SIP is easy. Simply give us post-dated cheques or opt for an Auto Debit from your bank account for an amount of your choice (minimum of Rs. 500 and in multiples of Rs. 100 thereof*) and well invest the money every month in a fund of your choice. The plans are completely flexible. You can invest for a minimum of six months, or for as long as you want. You can also decide to invest quarterly and will need to invest for a minimum of two quarters.

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Chapter 5: Objective

23

 To understand the needs of the investors with respect to their investment and various options where investors invest their money

To understand the awareness of SIP route to invest.

To understand the reasons to invest or not to invest in SIP.

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Chapter 6: Research Methodology

25

Research Methodology is the investigation of specific problem in detail. At first problem is defined carefully for conducting research. There should be a good research plan for conducting research. No research can be done without data collection. After all this analysis made for getting solution for problem. Define the problem Define the sample size Collection of data Analysis and interpretation Defining the problem Defining the research problem is first necessary step for any research. This work should be done carefully. Here research problem is to know wilingess of general public to work as an agent with private player or HDFC MUTUAL FUND. Research plan This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones.

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Data sources:
Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through questionnaire.

Duration of Study:
The study was carried out for a period of two months, from 15th May to 15th July 2011

Sampling:
Sampling procedure: The sample was selected of them who are the customers/visitors of HDFC Asset Management Company Limited AD-64/127, 4th Floor Arihant Complex, Sigra Limited, Varansi irrespective of them being investors or not or

availing the services or not. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool.

Sample size:
The sample size of my project is limited to 100 people only.

Sample design:
Data will be presented with the help of bar graph, pie charts, line graphs etc.

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Chapter 7: Data Analysis and Interpretation

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1. Qualification of the investors? Table 1:Qualification Graduate/PG Undergraduate Others(Students etc) Investors 58 32 10

Chart 1:-

70 60 50 40 32 30 20 10 10 0 Graduate/PG Undergraduate Others(Students etc) 58

Interpretation:Qualification of investor who are Graduate/PG are 58 , Undergraduate are 32 and other are only 10 . We can say more graduate/PG people are investors

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2. Occupation of the investors? Table 2:Occupation Govt. sector Pvt. sector Business Agriculture Others No. of respondents 27 38 24 04 07

Chart 2:-

40 35 30 25 20 15 10 5 0 Govt. Sector

38 27

24

4
Pvt. Sector Business Agriculture

Others

Interpretation:Occupation of investors pvt. Sector are 38 , govt. sector are 27 , business are 24 , agriculture are 4 and others are 7. We can say more number of investors are from pvt. Sector.

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3. Monthly income of the investors? Table 3:Income Up to Rs.10,000 Rs.10,001 to 15,000 Rs.15,000 to 20,000 Rs.20,000 to 30,000 Rs.30,001 and above No. of respondents 2 4 11 17 66

Chart 3:-

2% 4%

11% 17%

Up to Rs.10,000 Rs. 10,001 to 15000 Rs. 15,001 to 20,000

66%

Rs. 20,001 to 30,000

Interpretation:Family income of investors Up to Rs.10,000 are only 2% , Rs.10,001 to 15,000 are only 4% Rs.15,001 to 20,000 are only 11% , Rs.20,001 to 30,000 are only 17% and above 30,000 are 66%. We can say , the family income of investors are more than 30,000 , they are more invest.

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4. How many people are invest? Table 4:Yes No 96 4

Chart 4:-

4% Yes No

96%

Interpretation:96% of people are invest and 4% of people are not invest. We can say most of the people invest.

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5. Awareness of various investment options? Table 5:Investment plan Fixed deposit Real estate Mutual fund Pension plan PPF Gold Any other

No.of respondents

45

60

53

65

40

58

62

Chart 5:70 60 60 50 40 30 20 10 0 fixed deposit real estate mutul fund pension plan PPF gold any other 45 40 53 65 58 62

(Define investments avenues)

Interpretation:From the above charts we can interpret that awareness of other option like fixed deposit is 45, real estate is 60 , mutual fund is 53 , pension plan 65 , PPF 40,gold 58 and any 62 other plan among the most of investors.

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6. Investment in systematic investment plan? Table 6:Yes No 55 45

Chart 6:60

50

40

30

20

10

0 Yes No

Interpretation:55 people are invest in SIP and 45 people are not invest . we can say more people are invest in SIP.

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7. Reasons for investing in SIP? Table 7:Capital prevention Retirement Children education Income growth Tax saving Others 55 52 48 54 55 45

Chart 7:-

Others 15% Tax saving 18%

Capital prevention 18% Retirement 17%

Income growth 17%

Children education 15%

Interpretation:People who invest for capital prevention are 55 , retirement are 52 , for children education are 48 , for income growth are 54 , for tax saving are 55 and for other are 45. We can say different people invest according their needs and want.

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8. If yes, in which assets class would you prefer to invest in Mutual Fund? Table 8:TYPES OF SCHEMES EQUITY DEBT LIQUID RESPONSE 30 22 8 PERCENTAGE 50.00% 36.67% 13.33%

Chart 8:-

0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 EQUITY(50%) DEBT(36.67%) LIQUID(13,33%) LIQUID DEBT EQUITY

(Define schemes preferred by investors)

Interpretation: From the above chart it is getting clear that from 100 peoples sample 60(60%) people are invest in Mutual fund and out of 30 (50%) people invests in equity assets class and 22(36.37%) people choose to invests in debt class but only just 8(13.33%) peoples choose to invests in liquid class.
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9. Do you invest in HDFC assets Management Company limited? Table 9:YES 56 NO 44 TOTAL 100

Chart 9:60 50 56 44

NO OF PEOPLE

40 30 20 10 0 YES PREFERNCE NO Series1

(Define investment in HDFC assets Management Company)

Interpretation: From the above chart it is getting clear that out of 100 people sampled, 56 peoples are invest in HDFC assets management company and 44 peoples are not invests in HDFC assets management company.

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10. Awareness of various schemes of HDFC? Table 10:Schemes Of HDFC Equity Fund Capital Builder Fund Prudence Fund Tax Saver Fund Core And Satellite Fund Top 200 Fund Balanced Fund Growth Fund Others Fund No. Of Investors 43 2 17 35 3 16 1 16 5

Chart 10:NO OF INVESTOERS 5 43

1 16 3

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2 35 17 CAPITAL BUILDER FUND TAX SAVER FUND TOP 200 FUND GROWTH FUND

EQUITY FUND PRUDENCE FUND CORE AND SATELITE FUND BALANCED FUND OTHERS FUND

(Define scheme in which investors invest in HDFC assets Management Company)

Interpretation:
we can see that in HDFC assets Management Companys EQUITY FUND maximum number (43) of people are aware. In TAX SAVER FUND 35 number of people invests. In both TOP 200 FUND and GROWTH FUND 16 numbers of people are aware but in BALANCED FUND, CAPITAL BUILDER FUND, CORE AND SATELITE FUND only 1, 2 and 3 people are aware.
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11. By which medium you invest in HDFC assets Management Company limited? Table 11:MEDIUM OF INVESTMENT DISTRIBUTOR BANK ONLINE / SELF NO. OF PEOPLE 8 48 0

Chart 11:NO OF PEOPLE 48

50 45 40 35 30 25 20 15 10 5 0

NO OF PEOPLE 8 0 DISTRIBUTOR MEDIUMS ONLINE

(Define mediums chosen by investors for invest in HDFC assets management company)

Interpretation: From the above chart its getting cleared that most of the peoples (48) are invest by bank and only 8 peoples are invest by distributors. Nobody invests through online. So here HDFC assets Management Company has to provide facility by which investors invest their money without any middle man in mutual fund schemes through online.

Note: - Here out of 100 respondents, 44 respondents are not investing in HDFC assets
Management Company. These responds are not considered in these questions.

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12. Do you know about ongoing new fund offer of HDFC Assets Management Company limited? Table 12:AWARENESS OF NFO YES NO TOTAL 58 42 100 NUMBER PERCENTAGE 58% 42% 100%

Chart 12:NUMBER

42 YES NO 58

Interpretation: -

The above pie - chart shows that around 58% people aware of on going new fund offer of HDFC assets Management Company and only 42% people are unaware from on going new fund offer of HDFC assets management company.

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Chapter 8: Conclusions

41

 Occupation, income level and qualification have impact on investors.

Most of the people invest regularly.

Distributor plays vital role in investment. Distribution channels are also important for the investment in SIP.

Lack of awareness is barrier for Systematic Investment Plan.

Tax saving, children education, retirement etc scheme influence customer to invest in SIP.

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Chapter 9: Limitations

43

Some of the persons were not so responsive.

Possibility of error in data collection because many of investors may have not given actual answers of my questionnaire.

Sample size is limited to 100 visitors of HDFC AMC COMPANY LIMITED AD-64/127, 4th Floor Arihant Complex, Sigra Limited, Varanasi

The research is confined to a certain part of Varanasi.

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Chapter 10: Recommendations

45

The most vital problem spotted is of ignorance. Investors should be made aware of the benefits investing in mutual funds.

The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time.

The advisors may try to highlight some of the value added benefits of MFs such as tax benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. These benefits are not offered by other options single handed.

Organisation should engage banks to sell the systematic investment plan to increase the number of investors. Company should training to the bank and distributor staff about systematic investment plan.

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Appendices

47

Questionnaire

NAME: -

ADDRESS: -

CONTACT NO: (O)

(R)

(M)

(1) (a). What is qualification:-

Graduation/PG

Under Graduate

Others

(b). What is occupation. Pl tick ()

Govt. Ser

Pvt. Ser

Business

Agriculture

Others

(c). What is your monthly family income approximately? Pl tick ().

Up to Rs.10,000

Rs. 10,001 to Rs. 15,001 to Rs. 20,001 to Rs. 30,001 15000 20,000 30,000 and above

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(2) Are you aware Systematic Investment plan? Yes No

(3) If you are aware of asset management co. If Yes, which AMC will you Prefer?

Assets Management Co. a. HDFC MF b. UTI c. Reliance d. SBI e. Kotak f. ICICI

(4) Which are the other options you are aware of? a. b. d. f. Fixed deposit Pension plan Insurance Gold b. c. e. g. Mutual fund PPF Stock market Any other

49

(5) In which assets class do you want to invest in S I P in mutual funds?

Equity

Debt

Liquid

(6) Do you invest in HDFC Systematic investment Plan?

Yes

No

(7) If yes, in which scheme have you invested?

Equity

Capital builder

Prudence fund

Tax saver

Top 200 fund

Balanced fund

Growth

Others
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(8) Reasons for investing in SIP? a. b. c. d. e. f. Capital prevention Tax saving Children education Income growth Retirement Any other ( ( ( ( ( ( ) ) ) ) ) )

(9) By which medium have you invested? Distributor Bank Online

(10) What is the reason for selecting HDFC S I P ?

Better fund house

Excellent customer service provider

Consistent return

Other

If other please specify

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(11) If no, why do not invest in SIP? (a) No monthly imprest (b) Not much aware (c) Other better option

(12) Do you know about ongoing new fund offers of HDFC AMC?

Yes

No

Would you like the bank to contact you for providing information about its fund offers?

Remarks if any other please specifies: -

Thank you for your time.

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Bibliography

53

www.hdfcfund.com www.the-finapolis.com www.mutualfundsindia.com www.valueresearchonline.com www.moneycontrol.com www.morningstar.com www.yahoofinance.com www.theeconomictimes.com www.rediffmoney.com www.bseindia.com www.nseindia.com www.investopedia.com

Journals & other references

HDFC AMC manual The Economic Times Business Standard The Telegraph Business India Fact sheet and statements of various fund houses

54