HDFC MUTUAL FUNDS

GROUP 8
SHREYAS | NISHANT | ASHUTOSH | SHASHANK
7 P’S AND FEATURES

 Product : Physical Good, features, Quality level, Accessories, Product lines, Branding
 Place :Channel Type, Exposure, Intermediaries, Outlet locations, Transportation, Storage, Channels, Managing
 Promotion : Promotion blend, Sales People, Number, , Selection, Training, Incentives, Advertising, Targets, Media
Types, Type of ads, Copy thrust, Sales Promotion
 Price : Flexibility, Price level, Terms, Differentiation, Discounts
 People : Employees, Recruiting, Training, Motivation, Rewards, Teamwork, Customers, Education, Communication,
Culture and values, Employee search
 Physical Evidence: Facility Design, Employee Dress, Other Tangibles, Reports, Business Cards, Statements, Guarantees,
Publicity
 Process: Flow of activities, Standardized, Customized, Number of Steps, Simple, Complex, Level of Customer
involvement
4C’S

 Customization- the greatest advantage of mutual funds is their virtually endless variety. This wide
assortment of products makes it relatively simple to find funds that fit clients' needs
 Cost- offers shareholders automatic diversification, either across industries or within a single sector.
Mutual funds also allow your clients to pick a mixture of high-risk, high-reward securities and stable
growth assets, to spread their risk and benefit from both investment types
 Customers-
 Competitions- The top 10 competitors in HDFC Mutual Fund's competitive set are Axis Mutual Fund,
Sundaram Mutual, ICICI Prudential AMC, SBI Mutual Fund, Reliance Capital, Reliance Mutual, SBI
Mutual Fund, Hartford Funds, FundsIndia, IDBI Mutual.
VALUE TO CUSTOMER

• constantly review the markets for new trends,

• to identify new growth sectors and share this knowledge with the investors in the form of product
offerings
• 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
 Investment Philosophy-
• Profitably
• Research Analysis
• Controlled Risk
 PROS AND CONS OF THE BUSINESS STRATEGY
Pros of the business strategy
• Core beliefs of DFA make it unique among investment
companies
• Customers get to see best research being implemented in
their portfolios
• Customers received valuable input from skilled traders to
spot anomalies in the efficient market.
• Trading strategy sought to lower transaction costs as well
as to create value for the company and for its clients
• Reduced adverse selection problems.
• Growth was steady and profits were strong
• Purchase discounts combined with the avoidance of
adverse selection enabled DFA’s passively managed small-
stock portfolio to outperform typical small-stock indices
Cons of the business strategy
• Recession in the early 80s due to which small
companies took a hit led to DFA lagging in funds
• Growth and tech stocks, which DFA avoided,
outperformed value stocks in the 90s
• precisely matching the holdings of the index
portfolio lead to DFA paying premiums for stocks
instead of getting discounts
• Small stocks are more susceptible to market
fluctuations, which in turn increase the risk of
the portfolio