A MARKET SURVEY REPORT ON

A STUDY OF CUSTOMER SATISFACTION TOWARDS EQITY SCHEMES OF HDFC MUTUAL FUND

Submitted To:

COLLEGE OF MANAGEMENT AND COMPUTER APPLICATION, MORADABAD

In Partial Fulfillment of the Requirement of the Degree of Bachelor of Business Administration (BBA)

SESSION: 2009-2012 Department of Management TEERTHANKER MAHAVEER UNIVERSITY DELHI ROAD, MORADABAD
Project Guide: Project Incharge:

Mr. Mohit Rastogi Lecturer

Submitted By:

Mr. Abhinav Srivastava Rohit Yadav

B.B.A. V Semester Roll No. R0912011283 & Mr. Avinash Raj Kumar (Course Co-ordinator, B.B.A.)

CERTIFICATE
This is to certify that Mr............................................................. is pursuing three year full time Bachelor of Business Administration (BBA) Course from Teerthanker Mahaveer University, Moradabad as regular student, in session (2009-2012). In compliance with the provision/guidelines of Teethanker Mahaveer University, Moradabad, He has been assigned a market survey report. The report work has been genuinely carried out by the student for the during specified by the university. He has made sincere efforts in the completion of the project work.

MR. Mohit Rastogi Project Guide

STUDENT DECLARATION
I Rohit Yadav hereby declare that the research work presented in this survey report entitled A Study of Customer Satisfaction Towards Equity Schemes of HDFC Mutual fund for the fulfillment of the award of Bachelor of Business Administration from Teerthanker Mahaveer University; Moradabad. The report embodies the result of original work and studies carried out by me and the contents of the project do not form the basis for the award of any other degree to me or to anybody else.

Rohit Yadav
BBA 5th Sem

ACKNOWLEDGEMENT
It gives me immense pleasure and privilege to acknowledge my deepest sense of gratitude towards all those who helped me in the successful execution of this survey report. I would like to thanks Chancellor Sir, Shri Suresh Jain, Group Vice Chairman Mr. Manish Jain, for their able guidance. I also extend my gratitude towards the H.O.D. Dr. M.P. Singh and my course co-coordinator Mr. Abhinav Srivastava & Mr. Avinash Raj Kumar who entrusted me for the completion of this survey report. I am highly indebted to my project guide, Mr. Mohit Rastogi whose constructive counseling and able guidance helped me immensely in bringing out this survey report in the present form. And lastly the entire faculty member and Mr. Sanjeev Singh (Librarian) & the entire Lab staff for providing me this opportunity and expose me to industrial culture. The acknowledgement would be incomplete without thanking my family and friend who were a big support throughout.

Rohit Yadav BBA 5th SEM

PREFACE
Theoretical knowledge without practical knowledge is of little value. In order to achieve positive & concrete results along with theoretical concept the exposure of real life situation existing in corporate is very much needed. To fulfill this need the management course has a provision for the practical training program. I thank my institute to provide us such opportunity having training period in our course so that students can have real feeling of Organization life.

EXECUTIVE SUMMARY
Mutual funds have been a significant source of investment in both government and corporate securities. It has been for decades the monopoly of the state with UTI being the key player, with invested funds exceeding Rs.300 bn. The state-owned insurance companies also hold a portfolio of stocks. Presently, numerous mutual funds exist, including private and foreign companies. Banks mainly state-owned too have established Mutual Funds (MFs). Foreign participation in mutual funds and asset management companies is permitted on a case by case basis. There are numerous benefits of investing in mutual funds and one of the key reasons for its phenomenal success in the developed markets like US and UK is the range of benefits they offer, which are unmatched by most other investment avenues. We have explained the key benefits in this section. The benefits have been broadly split into universal benefits, applicable to all schemes and benefits applicable specifically to open-ended schemes. Generally the people who are interest to invest in Mutual Fund, having lacking of knowledge and sufficient information about Mutual Fund, they make the wrong decision and do investment in wrong way and they lose their money. This is serious problem and by this project report we have tried to provide the accurate knowledge and sufficient information about Mutual Fund. The mutual fund will have a fund manager that trades the pooled money on a regular basis. Currently, the worldwide value of all mutual funds totals more than $26 trillion. Mutual funds can invest in many kinds of

securities. The most common are cash instruments, stock, and bonds, but there are hundreds of sub-categories. Stock funds, for instance, can invest primarily in the shares of a particular industry, such as technology or utilities. These are known as sector funds. Bond funds can vary according to risk (e.g., high-yield junk bonds or investment-grade corporate bonds), type of issuers (e.g., government agencies, corporations, or municipalities), or maturity of the bonds (short- or long-term). Both stock and bond funds can invest in primarily U.S. securities (domestic funds), both U.S. and foreign securities (global funds), or primarily foreign securities (international funds). .

CONTENTS

1. 2. 3. 4. 5. 6. 7. 8. 9 10. 11. 12.

Introduction Company Profile Objective of the study Assumption Research Methodology Data analyses Findings Recommendation Conclusion Limitations Bibliography Annexure

INTRODUCTION

INTRODUCTION TO THE PROJECT

The objective of this project is to study the Customer satisfaction towards equity schemes by HDFC Mutual Fund. A Mutual Fund is a pure intermediary, which performs a basic function of buying and selling securities on behalf of its unit holders. One of the major features of the operations of this kind of organization is that the financial claim(s) it issues is formally almost identical with the major asset(s) it holds. Unlike other financial institutions whose liabilities and assets differ sharply in their nature, unit trust issues claims (units) which have, like its assets (equity stock), claim on a proportionate part of the portfolio. However, unlike shareholders in a company, the shareholders in a MF do not have any voting rights.

ORGANISATION
Mutual funds have a typical organization in which five key parties or players or special bodies or constituents are involved. They are: The Sponsor(s) The Board of Trustees (BOT) or Trust Company (TC) The Asset Management Company (AMC) The Custodian The Unit Holders

Mutual funds can sell their units directly to the investors or they may employ the sales force of brokers and agents for that purpose. Mutual Funds is a topic which is of enormous interest not only to researchers all over the world, but also to investors. Mutual funds as a medium-to-long term investment option are preferred as a suitable investment option by investors. However, with several market entrants the question is the choice of mutual fund. The study focuses on this problem of mutual fund selection by investors. Though the investment objectives define investors preference among fund types (balanced, growth, dividend etc.) the choice of fund based on a sponsors reputation remains to be probed. Indian mutual fund industry has two distinct types of sponsors, public-sector and private-sector. The number of funds floated by public sector sponsors is minimal compared to private-sector players. There is

a hypothetical assumption that private-sector outperforms public-sector due to several factors such as responsibility, commitment and so on. We focus on testing this hypothesis on the mutual fund industry. Although many studies document the investment performance of mutual funds irrespective of whether they are public-sector sponsored or private-sector sponsored, researchers do not investigate the influence of portfolio characteristics and the variable effect of diversification on mutual fund performance.

IMPORTANCE & SCOPE

In brief, the study of this report is beneficial as well as important for both i.e. investors as well as for HDFC Mutual Funds. Whenever any work is dome with any objective and honesty, it is not waited; it has some importance for some people. The importance of making report on this topic is disclosed in the following points-

To make the comparison between HDFC Mutual Fund. with HDFC Mutual Fund. It also let us knows whether customer is satisfied with the performance of different schemes of HDFC Mutual Fund or not. If yes then why? and if not they why?

It let us know the performance of different schemes of HDFC Mutual Fund. On the basis of these findings, it can easily inform the investors in which scheme he/she should invest or from which they should withdraw, etc. on the other hand it also communicate the HDFC Mutual Funds why different schemes are not performing better? Why the customers are not satisfied? Which scheme attracts the customer? Which type of scheme they should launch so as to increase their investment fund. What are their strong points through which they can come ahead form their competitors? What are their weak points over which they are required to give more attention etc.

COMPANY PROFILE

COMPANY PROFILE

BUSINESS FOCUS HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages.

Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different corporate market client base segments for its and housing also related has credit a large

facilities.

With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. CAPITAL STRUCTURE

The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion).

The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue).

Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders.

The shares are listed on the The Stock Exchange, Mumbai and the National Stock Exchange.

The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB".

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 761 branches spread over 327 cities across India. All branches are linked on an online real-time basis.

Customers in over 120 locations are also serviced through Telephone

Banking.

The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products.

Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base.

The Bank also has a network of about over 1977 networked ATMs across these Cities and has 1229 branches and 2400 Atms by march2008.

Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

MANAGEMENT Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001.

Prior to this, Mr. kapoor was a Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

he Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking.

Senior executives representing HDFC are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director.

Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength. HDFC Mutual Fund is one of the largest Mutual Funds in the country with an investor base of over 2 million. With over 18 years of rich

experience in fund management, HDFC Mutual Fund brings forward its experience in consistency delivering value to its investors.

HDFC Mutual Fund its strength from Indias largest Bank State Bank of India and Generate Asset Management Fund. STRONG HERITAGE

HDFC Mutual Fund is a fully owned subsidiary of the HDFC. HDFC Mutual Fund draws strength from Indias premier and highly

respected bank, the State Bank of India. Set up on July 1, 1955, the HDFC is today the largest banking operation in the country.

Through years of commitment to services and national development, HDFC has grown into an investment of social change. Today, it has 9034 branches in India and 51 offices in 31 countries spread across the globe.

Investor Service Centres

Ahmedabad Bhilai Bhubaneshwar Channai Cochin Guwahati Indore Kanpur Lucknow Mumbai Patna Ranchi

Bangalore Bhopal Chandigarh Coimbatore Goa Hyderabad Jaipur Kolkatta Ludhiana New Delhi Pune Siliguri

Vododara

Vijayawada

HDFCMF INVESTORS SERVICE DESK Agra Ajmer Ghaziabad Hubli Jamshedpur Madurai Moradabad Nashik Rajkot Surat Vishakhapatam Amritsar Dehradun Gurgaon Jammu Kota Mangalore Nagpur Raipur Shimla Thiruvananthapuram

OFFICIAL INVESTORS SERVICE DESK Doha Dubai

PRODUCT-PROFILE Equity Schemes

The investments of these schemes will predominantly be in the stock markets and endeavor will be to provide investors the opportunity to benefit from the

higher returns which stock markets can provide. However they are also exposed to the volatility and attendant risks of stock markets and hence should be chosen only by such investors who have high risk taking capacities and are willing to think long term. Equity Funds include diversified Equity Funds, Sectoral Funds and Index Funds. Diversified Equity Funds invest in various stocks across different sectors while sectoral funds which are specialized Equity Funds restrict their investments only to shares of a particular sector and hence, are riskier than Diversified Equity Funds. Index Funds invest passively only in the stocks of a particular index and the performance of such funds move with the movements of the index. Magnum COMMA Fund Magnum Equity Fund Magnum Global Fund Magnum Index Fund Magnum MidCap Fund Magnum Multicap Fund Magnum Multiplier Plus Magnum Sector Funds Umbrella FMCG Fund Emerging Businesses Fund IT Fund Pharma Fund

Contra Fund Magnum TaxGain Scheme HDFC Bluechip Fund

Debt Schemes

Debt Funds invest only in debt instruments such as Corporate Bonds, Government Securities and Money Market instruments either completely avoiding any investments in the stock markets as in Income Funds or Gilt Funds or having a small exposure to equities as in Monthly Income Plans or Children's

Plan. Hence they are safer than equity funds. At the same time the expected returns from debt funds would be lower. Such investments are advisable for the risk-averse investor and as a part of the investment portfolio for other investors. Magnum Children`s Benefit Plan Magnum Gilt Fund Magnum Gilt Fund (Long Term) Magnum Gilt Fund (Short Term) Magnum Income Fund Magnum Income Plus Fund Magnum Income Plus Fund (Saving Plan) Magnum Income Plus Fund (Investment Plan) Magnum Insta Cash Fund Magnum InstaCash Fund -Liquid Floater Plan Magnum Institutional Income Fund Magnum Monthly Income Plan Magnum Monthly Income Plan Floater Magnum NRI Investment Fund HDFC Debt Fund Series

15 Months Fund 90 Days Fund 13 Months Fund

60 Days Fund NFO - SDFS 180 Days Fund

Balanced Schemes

Magnum Balanced Fund invest in a mix of equity and debt investments. Hence they are less risky than equity funds, but at the same time provide commensurately lower returns. They provide a good investment opportunity to

investors who do not wish to be completely exposed to equity markets, but is looking for higher returns than those provided by debt funds. Magnum Balanced Fund Magnum NRI Investment Fund FlexiAsset Plan

MUTUAL FUND

Investments in securities are spread across a wide cross-section of industries, the risk is reduced. Diversification reduces the risk because all stocks may not move direction in the same proportion at the same time. Mutual fund issues units to the accordance with quantum of money invested by them. Investors of mutual funds are unit holders. In other words Mutual fund is a mechanism for pooling the resources by issuing units to the investors funds in securities in accordance with objectives as disclosed in offer document. A mutual fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme. For example, an equity fund would invest equity and equity related instruments and a debt fund would invest in bonds, debentures, gilts etc.

Mutual Fund Structure

The structure consists of Sponsor Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. Sponsor must contribute atleast 40% of the networth of the Investment Manged and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or liable for any loss or shortfall resulting

from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund.

Trust The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.

Trustee Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Offer Documents of the respective Schemes. Atleast 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner.

Asset Management Company (AMC) The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual

Fund. Atleast 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. The AMC must have a networth of atleast 10 crore at all times.

Registrar and Transfer Agent The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.

BENEFITS OF MUTUAL FUNDS

There are numerous benefits of investing in mutual funds and one of the key reasons for its phenomenal success in the developed markets like US and UK is the range of benefits they offer, which are unmatched by most other investment avenues. We have explained the key benefits in this section. The benefits have been broadly split into universal benefits, applicable to all schemes, and benefits applicable specifically to open-ended schemes.

Universal Benefits

Diversification: The nuclear weapon in your arsenal for your fight against Risk. It simply means that you must spread your investment across different securities (stocks, bonds, money market instruments, real estate, fixed deposits etc.) and different sectors (auto, textile, information technology etc.). This kind of a diversification may add to the stability of your returns, for example during one

period of time equities might underperform but bonds and money market instruments might do well enough to offset the effect of a slump in the equity markets. Similarly the information technology sector might be faring poorly but the auto and textile sectors might do well and may protect your principal investment as well as help you meet your return objectives.

Affordability: A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment objective of the scheme. An investor can buy in to a portfolio of equities, which would otherwise be extremely expensive. Each unit holder thus gets an exposure to such portfolios with an investment as modest as Rs.500/-. This amount today would get you less than quarter of an Infosys share! Thus it would be affordable for an investor to build a portfolio of investments through a mutual fund rather than investing directly in the stock market.

Professional Management: Qualified investment professionals who seek to maximise returns and minimise risk monitor investor's money. When you buy in to a mutual fund, you are handing your money to an investment professional who has experience in making investment decisions. It is the Fund Manager's job to (a) find the best securities for the fund, given the fund's stated investment objectives; and (b) keep track of investments and changes in market conditions and adjust the mix of the portfolio, as and when required.

Variety: Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two ways: first, it offers different types of schemes to investors with different needs and risk appetites; secondly, it offers an opportunity to an investor to invest sums across a variety of schemes, both debt and equity. For example, an investor can invest his money in a Growth Fund (equity scheme) and Income Fund (debt scheme) depending on his risk appetite and thus create a balanced portfolio easily or simply just buy a Balanced Scheme.

Tax Benefits: Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit holders. However, as a measure of concession to Unit holders of open-ended equity-oriented funds, income distributions for the year ending March 31, 2003, will be taxed at a concessional rate of 10.5%. In case of Individuals and Hindu Undivided Families a deduction upto Rs. 9,000 from the Total Income will be admissible in respect of income from investments specified in Section 80L, including income from Units of the Mutual Fund. Units of the schemes are not subject to Wealth-Tax and Gift-Tax.

REGULATIONS

Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds and also prescribe disclosure and accounting requirements. Such a high level of regulation seeks to protect the interest of investors.

TYPES OF SCHEMES

Equity Oriented Schemes

These schemes, also commonly called Growth Schemes, seek to invest a majority of their funds in equities and a small portion in money market instruments. Such schemes have the potential to deliver superior returns over the long term. However, because they invest in equities, these schemes are exposed to fluctuations in value especially in the short term.

Equity schemes are hence not suitable for investors seeking regular income or needing to use their investments in the short-term. They are ideal for investors who have a long-term investment horizon. The NAV prices of equity fund fluctuates with market value of the underlying stock which are influenced by external factors such as social, political as well as economic. Debt based schemes

These schemes, also commonly called Income Schemes, invest in debt securities such as corporate bonds, debentures and government securities. The prices of these schemes tend to be more stable compared with equity schemes and most of the returns to the investors are generated through dividends or steady capital appreciation. These schemes are ideal for conservative investors or those not in a position to take higher equity risks, such as retired individuals. However, as compared to the money market schemes they do have a higher price fluctuation risk and compared to a Gilt fund they have a higher credit risk. Hybrid Schemes These schemes are commonly known as balanced schemes. These schemes invest in both equities as well as debt. By investing in a mix of this nature, balanced schemes seek to attain the objective of income and moderate capital appreciation and are ideal for investors with a conservative, long-term orientation. HDFC Balanced Fund and HDFC Childrens Gift Fund are examples of hybrid schemes.

Constitution Schemes can be classified as Closed-ended or Open-ended depending upon whether they give the investor the option to redeem at any time (open-ended) or whether the investor has to wait till maturity of the scheme.

Open ended Schemes

The units offered by these schemes are available for sale and repurchase on any business day at NAV based prices. Hence, the unit capital of the schemes keeps changing each day. Such schemes thus offer very high liquidity to investors and are becoming increasingly popular in India. Please note that an open-ended fund is NOT obliged to keep selling/issuing new units at all times, and may stop issuing further subscription to new investors. On the other hand, an open-ended fund rarely denies to its investor the facility to redeem existing units.

Closed ended Schemes

The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed number of units. These schemes are launched with an initial public offer (IPO) with a stated maturity period after which the units are fully redeemed at NAV linked prices. In the interim, investors can buy or sell units on the stock exchanges where they are listed. Unlike open-ended schemes, the unit capital in closed-ended schemes usually remains unchanged. After an initial closed period, the scheme may offer direct repurchase facility to the investors. Closed-ended schemes are usually more illiquid as compared to open-ended schemes and hence trade at a discount to the NAV. This discount tends towards the NAV closer to the maturity date of the scheme.

RISK

The Risk-Return Trade-off The most important relationship to understand is the risk-return trade-off. Higher the risk greater the returns/loss and lower the risk lesser the returns/loss. Hence it is upto you, the investor to decide how much risk you are willing to take. In order to do this you must first be aware of the different types of risks involved with your investment decision.

Market Risk

Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting the market in general lead to this. This is true, may it be big corporations or smaller mid-sized companies. This is known as Market Risk. A Systematic Investment Plan (SIP) that works on the concept of Rupee Cost Averaging (RCA) might help mitigate this risk.

Credit Risk The debt servicing ability (may it be interest payments or repayment of principal) of a company through its cashflows determines the Credit Risk faced by you. This credit risk is measured by independent rating agencies like CRISIL who rate companies and their paper. A AAA rating is considered the safest whereas a D rating is considered poor credit quality. A well-diversified portfolio might help mitigate this risk

Inflation Risk Inflation is the loss of purchasing power over time. A lot of times people make conservative investment decisions to protect their capital but end up with a sum of money that can buy less than what the principal could at the time of the investment. This happens when inflation grows faster than the return on your investment. A well-diversified portfolio with some investment in equities might help mitigate this risk. Interest Rate Risk

In a free market economy interest rates are difficult if not impossible to predict. Changes in interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of bonds fall and vice versa. Equity might be negatively affected as well in a rising interest rate environment. A well-diversified portfolio might help mitigate this risk.

Political/Government Policy Risk Changes in government policy and political decision can change the investment environment. They can create a favorable environment for investment or vice versa.

Liquidity Risk Liquidity risk arises when it becomes difficult to sell the securities that one has purchased. Liquidity Risk can be partly mitigated by diversification, staggering of maturities as well as internal risk controls that lean towards purchase of liquid securities.

OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY

To study the customer satisfaction towards equity schemes of HDFC Mutual Fund

ASSUMPTION

ASSUMPTION
Investors are satisfy with the performance of equity schemes of HDFC Mutual Fund.

RESEARCH METHODOLOGY

DATA COLLECTION
Data collection is a term used to describe a process of preparing and collecting data - for example as part of a process improvement or similar project. A method of data collection in which the situation of interest is watched and the relevant facts, actions and behaviors are recorded.

PRIMARY DATA COLLECTION METHODS

In primary data collection, you collect the data yourself using methods such as interviews and questionnaires. The key point here is that the data you collect is unique to you and your research and, until you publish, no one else has access to it.

SECONDARY DATA COLLECTION METHODS

All methods of data collection can supply quantitative data (numbers, statistics or financial) or qualitative data (usually words or text). Quantitative data may often be presented in tabular or graphical form. Secondary data is data that has already been collected by someone else for a different purpose to yours. For example, this could mean using:

SAMPLE SIZE SAMPLING UNIT SAMPLE PROCEDURE SAMPLING METHOD DATA SOURCES DATA COLLECTION METHOD RESEARCH INSTRUMENT

: : : : : : :

100 Investors Simple Random Sampling Personal Interview Primary & Secondary data. Survey Questionnaire

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

Q.1. Are you invested in any of the scheme of HDFC Mutual Fund? Table No - 1 Option Yes No Total Percentage 70 30 100 Graph No -1
Yes No

30%

70%

Interpretation: The above diagram shows that 70% peoples have invested in the scheme of HDFC Mutual fund and 30% peoples do not invested in any scheme of HDFC Mutual fund.

Q-2. What is your Investment objectives while investing in any Mutual Fund scheme? Table No 2 Options Capital Gain Safety of Investment Regular Return/Income Secure future Tax Benefits Total Percentage 30% 15% 35% 10% 10% 100%

Graph No - 2

Interpretation:-What are your Investment objectives while investing in any Mutual Fund scheme? 30% people think the investment objective is Capital Gain, 15% people think the investment objective is safety of investment, 35% people think the investment objective is regular return/income, 10% people think the investment objective is secure future and remaining 10% respondents thinks investment objective is tax benefits. Q.3. For how long you have invested? Table No - 3

Options One year Two year Three year More Total

Percentage 60% 25% 10% 5% 100% Graph No - 3

Interpretation:- For how long you have invested? 60% people have invested their money for One year, 25% for two year, 10% for three year and 5% for more than three year. It shows that people are generally for investing just for a year.

Q-4. Which type of mutual fund scheme do you prefer to invest? Table No 4 Options Open-ended Scheme Closed-Ended Scheme Percentage 80% 10%

Both Total Graph No - 4

10% 100%

Interpretation:- Which type of mutual fund scheme do you prefer to invest? 80% people have preferred the open-ended schemes in Mutual Fund, 10% people have preferred the closed-ended schemes and remaining 10% respondents preferred both (open-ended as well as closed-ended schemes).

Q.5. In how many schemes you have invested? Table No 5 Options One Two Three Percentage 40% 30% 20%

More Total

10% 100% Graph No - 5

Interpretation:- In how many schemes you have invested? 40% people have invested their money in one scheme only, 30% in two schemes, 20% in three schemes and 10% in more than three schemes which shows that people generally invested their money in one very popular scheme. Q.6. In which scheme you have invested? Table No 6 Options Equity Debt Balanced Any other Total Percentage 80% 5% 10% 5% 100%

Graph No - 6

Interpretation:- In which scheme you have invested? 80% people have invested their money in Equity Fund, 5% people have invested their money in Debt and 10% people have invested their money in Balanced and remaining 5% people have invested their money in any other which shows that people have the capacity to bear risk. Q.7. Which sector, do you give more preference? Table No - 7 Options Public Sector Private Sector Both Total Percentage 40% 50% 10% 100% Graph No - 7

Interpretation:- Which sector, do you give more preference? 40% people prefer the public sector mutual fund company 50% people prefer private sector mutual fund Company (like HDFC Mutual Fund) and remaining 10% people prefer both (public sector as well as private sector).

Q.8. In future would you like to invest? Table No 8 Options Yes No Total Percentage 85% 15% 100% Graph No - 8

Interpretation:- In future would you like to invest? On the basis of above data we can conclude that 85% people are willing to invest again in HDFC Mutual Fund because they are satisfied with the performance of the schemes and remaining 15% people are would not like to invest in mutual fund.

Q.11. What attracts you toward HDFC Mutual Fund? Table No 9

Options Good return Provide timely information Good reputation Knowledgeable staff Provide satisfactory answered of queries Total Percentage 60% 15% 10% 5% 10% 100%

Graph No 9

Interpretation:- What attracts you toward HDFC Mutual Fund? From the above data we can conclude that it is the good return which attracts the people towards HDFC mutual scheme and good reputation also motivate the people to make their investments in it. Q.12. Are you satisfied with the performance of HDFC Mutual Fund? Table No 10 Options Yes No Total Percentage 90% 10% 100% Graph No - 10

Interpretation:- Are you satisfied with the performance of HDFC Mutual Fund? On the basis of the above data, 90% people are satisfied with the performance of HDFC Mutual Fund and they are satisfied because they are getting returns according to their expectation and remaining 10% people are not satisfied with the performance of HDFC Mutual Fund.

FINDINGS

The investors give more preference to regular income funds besides the considerations of 1) Diversified Equity 2) Tax Saving Schemes. Thus if the government encourages the investment in mutual funds in the current budget, then more people will be investing in the MFs for tax saving. However people are also not compliant to risk aversion. They are willing to invest in risky equity funds.

Another significant finding of the project is that investors are lured by the returns MFs are showing. However at the same time they also want to minimize their risk. Investors desire or opt open-ended schemes than close-ended schemes. This means that they want flexibility in the inflow and outflow of their funds. The investment horizon, which is most liked by the investors, is 2-3 yrs. The source of information the investors most rely is on advertisement. However they also require the detailed information, which they take from Financial Advisors. On other sources the investors are quite apprehensive.

Investors portfolio consists mainly of Fixed Deposits and Post Office schemes. However portfolio of regular investors do contain significant proportion of Mutual Funds.

FINDINGS

FINDINGS
Most oh people have invested in HDFC Mutual Fund. Capital gain is the main reason of most of the respondents to invest in Mutual Fund. Open-ended scheme is preferred by most of the respondents. Most of the respondents invested in equity scheme of HDFC Mutual Fund.

 Good return & good reputation attracts most of the respondents towards equity scheme of HDFC Mutual Fund.

CONCLUSION

CONCLUSION
The Mutual fund industry is growing at a tremendous pace. A large number of plans have come up from different financial resources. With the Stock markets soaring the investors are attracted towards these schemes. Only a small segment of the investors still invest in Mutual funds and the main sources of information still are the financial advisors followed by advertisements in different media. The Indian investor generally investors over a period of 2 to

three years. Also there is a greater tendency to invest in fixed deposits due to the security attached with it. In order to excel and make mutual funds a success, companies still need to create awareness and understand the Psyche of the Indian customer. Mostly people are aware of the mutual fund industry and this awareness has been the leading factor in the popularity of Mutual Funds. People are aware of different schemes of HDFC Mutual Fund because it is not a single scheme which is performing better but there are different schemes which are performing better and provide returns beyond the expectation of investors and motivate them to diversify their money in different scheme and thereby offset the risk. Most People are satisfied with the performance of HDFC Mutual Funds because it is providing goods returns to its investors and sometime returns beyond the expectation. At the same time it is managed by knowledge able people whose main aim is to provide good returns to the investors on time and safe their funds form any loss. Mostly the returns of all the schemes are increasing as compare with the past year performance. People are interested in equity schemes which shows that the investors have more liking towards rapid growth and apperception of their investment and they can also raise their risk level for that. It is the mental tendency of people to invest their money in the one and the most popular as well as beneficial scheme so that they can reap all the benefits from one and single scheme.

SUGGESTIONS

SUGGESTIONS

Following suggestions are given by the researchers There is lack of awareness among people about mutual funds so there should be more advertising and other promotional campaigns to make them aware.

People are more interested in investing in equity funds rather than debt funds because companies are promoting more for equity funds. Companies should equally promote debt funds also as the provide security to customers. Companies should give knowledge to its customer about its computerized operations to save their time and to make the operations more easy. Should give proper and attractive advertisement of schemes and for this they can use different medias like print media, etc. Efforts should be made to make investment possible in different schemes through SIP on cash basis also just because so many people do not have their bank account; it stops them to make investment.

LIMITATIONS

LIMITATIONS
Un co-operative behaviour & negative attitude of the clients. Lack of free time from the point of view of clients. Artificial behaviors & lack of knowledge of respondents. Lack of source of information.

Lack of trust & confidence in respondents Environment conditions due to high temperature & humidity. Because of the electricity problems too much time was consumed in preparation of the report. Good time, effort & money were spent in contracting the respondent to get the questionnaire filled.

BIBLIOGRAPHY

BIBLIOGRAPHY
Bhalla V.K., Investment Management, S. Chand Publication, New Delhi. Kauhchal S.C., Corporate Finance Mahaveer Prakashan, New Delhi. L.M. Bhole, Financial Institutions and Markets, Tata McGraw-Hill Publishing Company Limited, New Delhi.

Kothari, C.R., Research Methodology.

WEBLIOGRAPHY

WEBLIOGRAPHY
www.HDFCmutualfund.com

ANNEXURE

QUESTIONNAIRE
Respondent Profile Name . Age .. Address . Occupation.

Phone No. . Mobile No. E-mail Id Q-1. Are you invested in any of the scheme of HDFC Mutual fund.

(a) Yes

(b) No

Q-2. What are your investment objectives while investing in any mutual fund schemes? (a) Capital Gain (c) Regular Return/Income (e) Secure feature Q.3. For how long you have invested ? (a) One year (c) Three year (b) Two Year (d) More (b) Safety investment (d) Tax Benefits

Q-4. Which type of mutual fund scheme do you prefer to invest? (a) Open-ended Scheme (b) Closed-Ended Scheme (c) Both

Q.5. In how many schemes you have invested? (a) One (c) Three (b) Two (d) More,

Q.6. In which scheme you have invested?

(a) Equity (c) Balanced

(b) Debt (d) other

Q.7. Which sector, do you give more preference? (a) Public Sector (c) Both Q.8. In future would you like to invest more in HDFC equity scheme? (a) Yes (b) No (b) Private Sector

Q.9. What attracts you towards equity schemes HDFC Mutual Fund? Good return Provide timely information Good reputation Knowledgeable staff Provide satisfactory answer of queries

Q.10. Are you satisfied with the performance of equity schemes of HDFC Mutual Fund? (a) Yes (b) No