SPCAM, Bakrol A Research Proposal ON

Instructor: Ms. Varsha Kuchara

" FUNDS AND RETURN OF MUTUAL FUND OF HADFC AND ICICI IN VADODARA" Submitted to (Sardar Patel college of Administration & Management) IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide Ms. Varsha Kuchara Assistant Professor Submitted by (NITESH R CHAUHAN) (NILESH H MISTRY) [Batch: 2011 - 13, Enrollment No.:[117550592113] [117550592155] MBA SEMESTER III (Institute Name) MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad Nov, 2012

SPCAM, Bakrol

Instructor: Ms. VarshaKuchara

content for Research Proposal Particulars Pages

1. Introduction of the Topic 2. Literature Review 3. Back ground of the Study 4. Scope of the study 5. Problem statement 6. Objective of the study 7. Hypothesis 8. Research design 9. Sources of data 10. Data collection method 11. Population 12. Sample 13. Sampling method 14. Sampling Frame 15. Limitation of the Study 16. Bibliography 17. Annexure

03 03 03 04 04 05 04 04 05 05 5-6 5-6 7-18 7-18 19 21 22

INTRODUCTION TO TOPIC

What is mean by mutual fund ?

Mutual funds are pools of money that are managed by an investment company they offer investors variety of goals depending on the funds and its investment chater

Concept of mutual funds:

A mutual fund is trust that pools the saving of no. of the investors who share a common financial goal the money thus collected is then invested in capital market instruments such as shares, debenture and other securities the income earned through this investment and capital appreciation realized are share by its unit holder by the proportion of the no of the units owned by them thus mutual fund is most suitable for common man as it offers an opportunity to invest in diversified professionally managed basket of security at a relatively low cost

Literature Review:
ICICI Bank is India's second-largest bank with total assets of about Rs. 1trillion and a network of about 540 branches and offices and over 1,000 ATMs. ICICI Bank offers a wide range of banking products and financialservices to corporate and retail customers through a variety of deliverychannels and through its specialized subsidiaries and affiliates in the areasof investment banking, life and non-Banking , venture capital, assetmanagement and information technology. ICICI Bank's equity shares arelisted in India on stock exchanges at Chennai, Muzaffarnagar, Kolkata andVadodara, the Stock Exchange, Mumbai and the National Stock Exchangeof India Limited and its American Depositary Receipts (ADRs) are listed onthe New York Stock Exchange (NYSE). HDFC Banks exposure to market risk a function of its trading and assetand liability management activities and its role as a financial intermediaryin customer-related transactions. HDFC had tried its best in mutual fund sector. It hasgrown up its market share in a meanwhile time. The objective of market risk managementis to minimize the impact of losses due to market risks on earning and equity capital

Background of study:
Historical Aspect: Mutual funds are firstly establish in 1822 in the form of society general De Belginique it means mainly gains the progress in Switzerland and little in france and Germany In its initial days the first investment trust " the foreign and colonial government trust" was founded in London in 1868

INDIAN SCENARIO OF MUTUAL FUND:

The origin of mutual fund industry in india is with the introduction of the concept of by UTI in the year 1963. Though the growth was slow but it accelerated from the year 1987 when NON UTI players enters in industry the mutual fund industry goes though four phases .

FIRST PHASE 1964-87 ESTABLISHMENT OF UTI SECOND PHASE 1987-93 ENTRY OF PUBLIC SECTOR FUND THIRD PHASE 1993-2003 ENTRY OF PRIVATE SECTOR FUND FOURTH PHASE SINCE FEB 2003 BIFURCATED OF UTI

SCOP E OF THE STUDY:

" " " " To make people aware about concept of mutual fund To provide information regarding advantages and demerits of mutual fund To advice where to invest or not to invest To provide information regarding types of mutual fund which is beneficial for whom

Problem Statement:
In a competitive situation with multiple mutual funds operating in indian market it is necessary to know about the performance of different mutual fund as the performance of mutual fund decides about the future of mutual fund company in the study my focus is open performance of investors regarding HDFC and ICICI this my problem to be studies for research.

objective of study: " " " " To analysis which provides better returns from HDFC and ICICI To analyze the concept and parameters of mutual fund. To know how many people are satisfied by their investment(HDFC or ICICI) To know people behavior regarding risk factor involve in mutual fund

Type of research: The research is qualitative and descriptive in nature qualitative research is that talk about the quality of the subject to be research and descriptive research is one that describe things as exists in present.

Data collection design: A) sources of data " Primary sources : I have used questionnaires as primary sources for collecting data for my study " Secondary sources: I had collected my secondary data from websites and journals

B) sampling: It represent whole populations it is the process of choosing a sample from whole population I have choose a sample of high class and middle class people who have invested in mutual funds as a sample.

C) tools: I have used some charts (pie chart column chart cylinder chart cone chart) and hypothesis tests (chi square one sample t-test etc)

D) sampling size: It represents that how many candidates you have chosen to be filled up your questionnaire or candidates upon whom you can study I had chosen sample of 100 candidates

E) sampling techniques: " " Deliberate and Convenience sampling F) data interpretation Data interpretation is that in which we analysis the whole collection data and tries to gives it in simple words to be understandable

Return on selected schemes.

HDFC HDFC Capital Builder Fund HDFC Core & Satellite Fund HDFC Equity Fund HDFC Long Term Equity Fund HDFC Top 200 Fund Average

Average annual return

2011 -26.9715 -30.0512 -31.0903 -25.9228 -27.8342 -28.3740 2010 24.9275 24.8243 25.5287 19.8029 22.2653 19.6114 2009 65.4346 70.1695 71.7624 57.5674 66.2314 66.2331 2008 -79.2738 -91.4511 -68.3961 -70.1055 -60.1671 - 73.8787 2007 51.6222 34.7273 41.6247 31.8064 77.5432 47.4648 AVERAGE 7.1478 1.6437 7.8858 2.6296 15.6077

ICICI PRUDENTIAL ICICI Prudential Discovery Fund - IP ICICI Prudential Dynamic Plan ICICI Prudential Service Industries Fund ICICI Prudential Top 100 Fund ICICI Prudential Top 200 Fund AVERAGE

2011 -27.0940 -22.7100 -28.1453

-22.7232 -32.0309 -26.5407

2010 24.3587 19.1976 15.6824

16.0985 19.6235 18.9921

2009 84.7972 58.4972 56.2144

55.5050 60.8822 63.1792

2008 -78.5660 -59.1553 -99.2349

-64.6314 -80.2407 -76.3656

2007 32.7698 33.2607 45.2974

35.5478 39.1552 37.2062

AVERAGE 7.2531 5.8180 -2.0372

3.9593 1.4778

Risk on selected schemes:

HDFC HDFC Capital Builder Fund HDFC Core & Satellite Fund HDFC Equity Fund HDFC Long Term Equity Fund HDFC Top 200 Fund Average

2011 3.0012 0.9602 1.1503 1.0724 1.2000 2.2491

2010 1.5283 0.8166 0.8757 1.4609 0.8929 0.8270

2009 1.5283 1.8565 1.8674 1.5172 1.8654 1.7270

2008 2.1542 1.8565 2.3291 2.0269 2.3773 2.2494

2007 1.2222 1.3531 1.3584 1.2240 1.4088 1.3133

AVERAGE 1.8868 1.3685 1.5161 1.4602 1.5488

ICICI PRUDENTIAL ICICI Prudential Discovery Fund - IP ICICI Prudential Dynamic Plan ICICI Prudential Service Industries Fund ICICI Prudential Top 100 Fund ICICI Prudential Top 200 Fund AVERAGE

2011 1.0359 1.0879 1.2741

1.2620 1.3020 1.1924

2010 0.8416 0.6576 1.0065

0.8777 0.9608 0.8688

2009 1.5087 1.3384 1.8304

1.8048 1.7493 1.6463

2008 2.3272 2.3078 2.4493

2.5899 2.5659 2.4480

2007 1.1898 1.2435 1.3249

1.5034 1.4152 1.3354

AVERAGE 1.3806 1.32704 1.5770

1.6075 1.5986

Commissions Payable to Distributors:

Serial Number

Name of Scheme

Plan/Option

Investment Amount (Rs)

Upfront Commission (%)

Trail Commission for Year 1 (%)

2 3 4 5 6

ICICI PRUDENT Growth Fund, ICICI Equity Fund, ICICI PRUDENT , ICICI Capital Builder Fund, ICICI PRUDENT Premier Multi-Cap ICICI Balanced Fund, ICICI Prudence Fund ICICI Long Term Advantage Fund ICICI PRUDENT TaxSaver ICICI PRUDENT Children's Gift Fund Savings Plan ICICI PRUDENT Children's Gift Fund Investment Plan

Growth and Dividend

Any Amount

0.65

0.35

Trail Commission for Year 2 onwards (%) 0.35

Growth and Dividend Growth and Dividend Growth and Dividend

Any Amount Any Amount Any Amount Any Amount Any Amount

0.65

0.35 NIL NIL NIL NIL

0.35 NIL NIL 0.35 0.35

2.75 2.75
0.70 0.70

Serial Number

Name of Scheme

Plan/Option

Investment Amount (Rs)

Upfront Commission (%)

Trail Commission for Year 1 (%)

2 3 4 5 6

HDFC Growth Fund, HDFC Equity Fund, HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund, HDFC Premier Multi-Cap HDFC Balanced Fund, HDFC Prudence Fund HDFC Long Term Advantage Fund HDFC TaxSaver HDFC Children's Gift Fund - Savings Plan HDFC Children's Gift Fund Investment Plan

Growth and Dividend

Any Amount

0.70

0.40

Trail Commission for Year 2 onwards (%) 0.40

Growth and Dividend Growth and Dividend Growth and Dividend

Any Amount Any Amount Any Amount Any Amount Any Amount

0.70 3.00 3.00 0.75 0.75

0.40 NIL NIL NIL NIL

0.40 NIL NIL 0.40 0.40

CUSTOMERS SATISFACTION FOR SALES AFTER SERVICES:

NAME OF COMPANY

SATISFIED

SATISFACTION IN (%)

56 HDFC MUTUAL FUND 44 ICICI PRUDENTIAL MUTUAL FUND

60%

40%

Findings: In my research I have founded following things:Investors have more faith HDFCs mutual fund. much satisfied, see more risk & become more risk adverse. behavior.

Limitations: There are some limitations of my study, those are as Following:Sample limitation: - which sample is taken by me is very small in size to Compare mutual fund of two companies. - The data collected by me is not much reliable because many investors chosen by me have invested in HDFC. - All the parameters have not been taken. - I had the shortage of time because of that I was not able to do my study in a good manner. - Investors chosen for study are not fully aware of all the terms and conditions related to mutual fund .So, it is very difficult to construct right information from them.

Recommendations / Suggestions: In my study I have found some limitations. For thatI can suggest both companies following suggestions or areas of improvement:HDFC. in better securities for better profits. should try to satisfy their customer by better customer service or by improving customer relationship management. terms and conditions. it is the most Powerful tool to position ant brand in the mindsets of customers.

Conclusion: To conclude we can say that mutual fund is a very much profitable tool for investment because of its low cost of acquiring fund, tax benefit, and diversification of profits & reduction of risk. Many investors who have invested in mutual fund have invested with HDFC and them also thinks that it provides better returns than ICICI .There is also an affect of age on mutual fund investors like; old people & widows want regular returns than capital appreciation. Companies can adopt new techniques to attract more &more investors. In my study I was suppose to do comparative analyses the mutual fund of HDFC &ICICI and I had found that people consider HDFC better than ICICI. But ICICI have also respondents and it can increase its investors by improving itself in some terms. well as to those who want regular returns on their investment. those who want their capitalappreciation. many competitors involved those affects on both companies.

Bibliography:-

-C.R.Kothari, Research Methodology. New Delhi, Vikas Publishinghouse Pvt.Ltd. 200 ICICI and HDFC Brochure . -www.wiki.answers.com www.scribd.com www.hdfc.com www.icici.com www.google.com
Annexure