A

PROJECT REPORT

ON

“A STUDY OF MUTUAL FUND”

AT
HDFC SECURITIES SANGAMNER

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE

In the partial fulfilment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION ( MBA)

SUBMITTED BY

RAKSHE VAIBHAV RAMESH

(Finance)

UNDER THE GUIDANCE OF

PROF. GOPAL V. BOOB

AKOLE TALUKA EDUCATION SOCIETY

TECHNICAL CAMPUS, AKOLE
Dist.Ahmednagar-422601.
2018 - 2019

ACKNOWLEDGEMENT
A Project usually falls short of its expectation unless guided by the right person
at the right time. Success of a project is an outcome of sincere efforts, channeled
in the right direction, efficient supervision and the most valuable professional
guidance.
This project would not have been completed without the direct and indirect help
and guidance of such luminaries. They provide me with the necessary resources
and atmosphere conducive for healthy learning and training.

At the outset I would like to take this opportunity to gratefully acknowledge the
very kind and patient guidance I have received from my project guide Mr.
Gopal V. Boob sir without his critical evaluation and suggestion at every stage
of the project, this report could not have reached its present form. In addition,
my internal guide of MBA department has critically evaluated my each step in
developing this project report.
I would like to thanks Our director Dr. Prashant Tambe, extend my gratitude
towards Mr. Gopal V.Boob, HOD, and MBA department. For her technical and
moral support required for the realization of this project report. Lastly, I would
like to thank all the members of THE HDFC SECURITIES and my colleagues
who gave me fruitful information to complete my project.

DECLARATION
 I Rakshe Vaibhav Ramesh of MBA hereby declare that the project work
on STUDY OF MUTUAL FUND which has been submitted to Savitribai Phule
Pune University Of Pune, is an original work of the undersigned and has not
been reproduced from any other sources and has not been submitted to any
university.

Signature of student

Date:
Place: AKOLE
Rakshe Vaibhav Ramesh
 TABLE OF CONTENTS

Sr No TOPIC Page No

1 EXECUTIVE SUMMARY

2 OBJECTIVE

3 LIMITATION

4 THEORETICAL BACKGROUND

A COMPANY PROFILE

B PRODUCT PROFILE

5 RESEARCH AND METHODOLOGY

DATA ANALYSIS AND

6
INTERPRETATION

7 CONCLUSION

8 SUGGESTIONS

9 BIBLIOGRAPHY
 Executive Summary

This Project is undertaken at The HDFC SECURITIES, Sangamner to STUDY OF

MUTUAL FUND about various schemes.

Brief about the project:

The project is divided into three parts:

Part 1: Part one of the project gives the company profile

Part 2: Part two gives the concept of mutual fund.

Part 3: :Part three discusses the study of various mutual fund

scheme

The data collected from both the primary and secondary sources. Primary source includes
data collected from branch manager and through personal interview, observation method. The
secondary source includes data collection from the Books and Internet, of the securities.
 OBJECTIVE

1. To know the meaning and Concept of Mutual Fund.

2. To study the growth of Mutual Fund Industry in India

3. To enhance our knowledge about the Mutual Fund.

4. To know the major scheme in HDFC Mutual Fund in India

5. To show the performance of the scheme of HDFC Mutual fund.

6. To submit the collected information in a systematic manner.

 LIMITATIONS OF THE PROJECT

1) Employees of bank are busy in their daily work so they are not provided much data to us.

2) This project is limited for only investors in Sangamner.

3) The project time is limited so we can’t cover all point of this subject.

4) Source of data not more reliable than the actual practice.

Company profile

HDFC securities Ltd, a trusted financial services intermediary is a subsidiary of India's

respected private sector Bank - HDFC Bank.
 A leading stock broking company having completed 10 years in operation, serves a diverse
customer base of retail and institutional investors.
Discerning investors experience a robust platform to trade in Equities, derivatives, currency,
futures and mutual funds through both NSE & BSE and other investment options like IPO's,
bonds, corporate fixed deposits, insurance etc.
Investors are also provided with niche - Equity Investment advice and execution platform
with superior technology aid and unbiased research across sectors, economy and scrip’s.
Our webportal is designed to meet the requirements of everyone from a beginner to a savvy
and well-informed trader with highest service standards, convenience and hassle-free trading
tools. The Webportal aims to provide a one stop window for all financial needs with
seamlessness and customer centric services.

WEBPORTAL

Based on Web 2.0 technologies.

SPEED

State of -the art technology enabling seamless trading experience on both the exchanges BSE
and NSE.

CONVENIENCE

• Clients could adapt to trade with us either online, or on the phone, or relationship managers
from the convenience of their home or office.
• The 4-in-1 Advantage account enables clients to seamlessly move funds and securities across
your bank demat and trading account.
• Clients get to enjoy limits across exchanges to trade
• No need to issue cheques or delivery instructions.
• Place IPO / NCD applications via few clicks using the trading account or by the phone. No
standing in queues or filling application forms.
• ASBA application facility.
• Customer care centre to address all queries and grievances.
REACH
HDFC securities has a strong unified call centre catering to clients across India and overseas
aiding clients who wish to have their orders placed by a tele-agent. 7 Regional language call
centre facility is available for clients.

Over 128 exclusive branches across India also service clients locally by dedicated
relationship managers.

TRANSPARENCY

With our trusted pedigree, a client can be assured of best services in a transparent manner and
is in total control of their funds and stocks.

EXPERTISE

With a decade of experience and a rating of A1+1, HDFC securities has a admired lineage of
providing financial services to customers in a transparent and trusted manner. We have a
dedicated, motivated and experienced team of professionals to provide you top class service.
TIMELY AND RELEVANT INFORMATION

we realize the importance of making information available to clients as it happens.

Empowered with the latest news, developments and unbiased research, enables a client to
take informed decisions.

YOUR INTEREST

For HDFC securities, client's interest comes first. We endeavor to provide high
quality investment services, in a simple, direct and cost-effective manner to help you achieve
your financial goals.

OUR OFFERINGS' ONE STOP SHOP, FOR ALL YOUR INVESTMENT NEEDS

• Equity and Derivatives

• IPO
• Mutual Fund
• Fixed Deposits
• General Insurance
• Life Insurance
• Bonds
• Currency Derivatives
• Portfolio Management Services(PMS)

REGISTERED OFFICE / CORPORATE OFFICE

HDFC Securities Limited

Office Floor 8, "I THINK" Bldg,
Jolly Board Campus,
Kanjurmarg (East),
Mumbai - 400042. India.
Tel: 022 - 30753400
Fax: 022 -307534
Website: www.hdfcsec.com

PRODUCT PROFILE

INTRODUCTION OF MUTUAL FUND

The dictionary meaning of mutual fund is ‘Unit Trust’. It should be taken as

‘trustees’ or the fund left with them by the subscribers and investor.
Mutual fund (MF) is a company that invests the pooled funds of many shareholders to create
a diversified portfolio of securities. ‘pooling’ is the key to mutual fund. Each mutual fund has
a specific investment objective and tries to meet that objective through active portfolio
management. it is non-banking, non-depository intermediary, which brings together the
investors who have surplus funds (money) to invest in corporate units and who need the
money for their industrial projects.
 “Mutual fund is a fund established in the form of trust by a sponsor, to raise the funds
by trustees through the sale of unit to the public, under one or more schemes for investing in
accordance with these regulations.”
Wealthy individuals and institutions have always had access to professional money managers.
They also have the wherewithal to properly diversify their holdings. These are the two major
disadvantages for the small time individual investor – the relatively small size of their
portfolio does not allow them to properly diversify and most top money managers require a
minimum of $250,000 (or more) to open an account.
Mutual funds provide the answer for the individual investor. Most have very low
initial investment requirements and some have no minimum requirement at all – you can start
investing with as little as $100.00 or even less!
What is a mutual fund?
A mutual fund is a professionally managed investment company that combines the
money of many individuals and invests this “pooled” money in a wide variety of different
securities.
It is by pooling the money of many individuals that mutual funds are able to provide the
diversification and money management (along with many other advantages) that were once
reserved only for the wealthy.
Professional money managers take this pool of money and invest it in a wide variety
of stocks, bonds, or other securities depending on the investment objective, or goal, of the
particular fund. It is the investment objective of the fund that guides the manager in selecting
the various securities for the fund.
It is the investment objective of the mutual fund that also guides the investor on which
funds to invest in. Since different investors have different objectives, there are a number of
different kinds of mutual funds, i.e., some mutual funds may provide monthly income while
others seek long-term capital appreciation.
Mutual funds can be classified according to their investment objective. Some of the
classifications include money market funds, growth funds, balanced funds, income funds, and
many others.

DEFINITION OF MUTUAL FUND

 “Mutual fund is a fund established in the form of trust by a sponsor, to raise the fund
by the trustees through the sale of units to the public, under one or more schemes for
investing in securities in accordance with these relations.”
How to Profit with Mutual Funds
When you invest in a mutual fund you hope that the value will rise and you can
eventually sell your shares for a profit. This is one of the ways you can profit with mutual
funds. Another way is through capital gains. When a mutual fund sells a security for a higher
price than it originally paid for it, it is known as a capital gain. Most mutual funds distribute
their capital gains to shareholders at least annually, some more often. The last way to profit
with mutual funds is with dividends or interest. If the fund has invested in bonds or dividend-
paying stocks, it must pass the dividends or interest earned on to its shareholders. Like capital
gains, this is done at least annually. Net Asset Value (NAV)
When you invest your money in a mutual fund, you buy shares in that fund. To determine the
price of those shares, each day the fund adds up the total value of the securities held in its
portfolio. This total is divided by the number of shares outstanding. The resulting figure is
known as the Net Asset Value or NAV.
To find out the value of your holdings, you simply multiply the number of shares you
own by the net asset value. The NAV of most funds is listed in most daily newspapers. The
NAV will change daily depending on how well the underlying securities of the fund perform.
If the securities held by the fund go up in value so will the value of your shares.
Open End & Closed End Mutual Funds

As stated above, mutual funds are generally classified according to the investment objective
of the fund. They are also classified according to how they are bought and sold. There are
open- or closed-end funds and there are load or no-load funds.
An open-end mutual fund is a mutual fund that continuously issues new shares as needed and
buys them back when investors wish to sell. There is no limit to how many shares an open-
end fund can sell. The buy and sell price is based on the net asset value of the fund. The
majority of mutual funds on the market today are open-end funds and are the type we are
concerned with in this tutorial.
The characteristics of a closed-end mutual fund more closely resemble that of an individual
stock. A closed-end fund is a mutual fund that issues a fixed number of shares which are then
traded (bought and sold) on a stock exchange or over the counter. Although the underlying
value of the securities in a closed-end fund may be, for example, $10.00 per share, they may
sell for more or less depending on investors outlook for the future value of the securities.

Load Funds vs. No-Load Funds

Load funds are simply mutual funds with a sales charge, or load. Load funds are generally
sold by stockbrokers, financial planners, or other financial salespeople who charge you a
commission every time you buy new shares. Under rules set by the National Association of
Securities Dealers (NASD), the maximum charge or load allowed is 8.5% which is deducted
from the amount of your investment. On a $1,000 investment, for example, you are really
beginning with just $915.00. The difference goes to the salesperson who sold you the shares.
This is known as a front-end load. There may also be a fee charged when you redeem, or sell,
your shares. This fee, known as a backend load, may be the only charge or it may be in
addition to the front-end load.
No-load funds are mutual funds with no sales charge. They are generally bought directly from
the fund. 100% of your money is invested in shares of the particular fund. Similar to no-load
funds are funds known as low-load funds. These are funds with a load of between 1% and 3%
and are bought either directly from the fund or through financial salespeople.
One other fee to be aware of is the so-called 12b-1 fee (named after the SEC regulation that
authorized it). This regulation allows mutual funds to charge up to 1.25% of their net asset
value to pay for such things as advertising and marketing expenses. If a fund charges 12b-1
fees (about 40% do) it must be stated in the prospectus.
In this tutorial we are only concerned with open-end mutual funds. This author further
suggests learning all you can about mutual funds and sticking with no-load or low-load
mutual funds. There is no evidence that load funds perform better than no-load funds. Unless
you need help in selecting a fund, go with a no-load fund and save the sales charge. Over
time that “small” fee can mean many thousands of dollars to you. Let’s look at an example:
Let’s assume you invest $10,000 in each of two funds, one a no-load fund and the other a
load fund with an 8.5% load. Let’s further assume both funds earn an identical 15% average
annual return. After 5 years, the no-load fund would outperform the load fund by $1,710;
after 10 years, $3,439;
and after 20 years the no-load fund would outperform the load fund by $13,911 – more than
your original total investment!$10,000 invested:
15% average annual total return:
Year No-Load Load Difference
5 Years 20,114 18,404 1,710
10 Years 40,456 37,017 3,439
20 Years 163,665 149,754 13,911

As the above example shows, it does pay to stay with no-load or low-load funds.
In Introduction to Mutual Funds, we have described what a mutual fund is and how they are
classified according to their investment objective. We have shown the three ways you can
profit with mutual funds. We have also described the charges a mutual fund can levy and why
it may be best to stick with no-load or low-load funds.

Types of mutual funds

Most funds have a particular strategy they focus on when investing. For instance, some invest
only in Blue Chip companies that are more established and are relatively low risk.
Types of mutual funds are:

Value stocks
Stocks from firms with relatively low Price to Earning (P/E) Ratio usually pay good
dividends. The investor is looking for income rather than capital gains.

Growth stock
Stocks from firms with higher low Price to Earning (P/E) Ratio, usually pay small
dividends. The investor is looking for capital gains rather than income.

Based on company size, large, mid, and small cap

Stocks from firms with various asset levels such as over $2 Billion for large; in
between $2 and $1 Billion for mid and below $1 Billion for small.

Income stock
 The investor is looking for income which usually come from dividends or interest.
These stocks are from firms which pay relative high dividends. This fund may include bonds
which pay high dividends. This fund is much like the value stock fund, but accepts a little
more risk and is not limited to stocks.

Index funds
The securities in this fund are the same as in an Index fund such as the Dow Jones
Average or Standard and Poor's. The number and ratios or securities are maintained by the
fund manager to mimic the Index fund it is following.

Enhanced index
This is an index fund which has been modified by either adding value or reducing
volatility through selective stock-picking.
Stock market sector
The securities in this fund are chosen from a particular marked sector such as
Aerospace, retail, utilities, etc.

Defensive stock
The securities in this fund are chosen from a stock which usually is not impacted by
economic down turns.

International
Stocks from international firms.

Real estate
Stocks from firms involved in real estate such as builder, supplier, architects and
engineers, financial lenders, etc.

Socially responsible
 This fund would invests according to non-economic guidelines. Funds may make
investments based on such issues as environmental responsibility, human rights, or religious
views. For example, socially responsible funds may take a proactive stance by selectively
investing in environmentally-friendly companies or firms with good employee relations.
Therefore the fund would avoid securities from firms who profit from alcohol, tobacco,
gambling, pornography etc.

Balanced funds
The investor may wish to balance his risk between various sectors such as asset size,
income or growth. Therefore the fund is a balance between various attributes desired.

Tax efficient
Aims to minimize tax bills, such as keeping turnover levels low or shying away from
companies that provide dividends, which are regular payouts in cash or stock that are taxable
in the year that they are received. These funds still shoot for solid returns; they just want less
of them showing up on the tax returns.

Convertible
Bonds or Preferred stock which may be converted into common stock.

Junk bond
Bonds which pay higher that market interest but carry higher risk for failure and are
rated below AAA.

Mutual funds of mutual fund

This funds that specializes in buying shares in other mutual funds rather than
individual securities.

Closed end
This fund has a fixed number of shares. The value of the shares fluctuates with the
market, but fund manager has less influence because the price of the underlining owned
securities has greater influence.
 ADVANTAGES OF INVESTING IN MUTUAL FUND:-

Mutual funds are funds that pool the money of several investors to invest in equity or debt.
Mutual Funds could be Equity funds, Debt funds or balanced funds. Funds are selected on
quantitative parameters like volatility, FAMA Model, risk adjusted returns, rolling return
coupled with a qualitative analysis of fund performance and investment styles through regular
interactions / due diligence processes with fund managers.
The reason that mutual funds are so popular is that they offer the ability to easily invest in
increasingly more complicated financial markets. A large part of the success of mutual funds
is also the advantages they offer in terms of diversification, professional management and
liquidity.

• Flexibility
Mutual Fund investments also offer you a lot of flexibility with features such as
systematic investment plans, systematic withdrawal plans & dividend reinvestment.

• Affordability
They are available in units so this makes it very affordable. Because of the large
corpus, even a small investor can benefit from its investment strategy.

• Liquidity
In open ended schemes, you have the option of withdrawing or redeeming your
money at any point of time at the current NAV

• Diversification
Risk is lowered with Mutual Funds as they invest across different industries &
stocks.
• Professional Management
Expert Fund Managers of the Mutual Fund analyse all options based on experience &
research

• Potential of return
The fund managers who take care of your Mutual Fund have access to information
and statistics from leading economists and analysts around the world. Because of this, they
are in a better position than individual investors to identify opportunities for your investments
to flourish.

• Low Costs
The benefits of scale in brokerage, custodial and other fees translate into lowercosts
for investors.

• Regulated for investor protection

The Mutual Funds sector is regulated to safeguard the investor's interests
 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
 The method by which the project is made is known as Project methodology. The necessary
information required for preparation of the project is to be collected from different sources.
Information on the data for the preparation of project can be collected by the research student
instead of he can use the information collected by someone else.

DATA COLLECTION : -

1) Primary Data :
The primary data are those which are collected afresh and for the first time, and thus happen
to be original in character. We collect primary data during the course of doing the project in
an experimental research but in case we do research of the descriptive type and perform
surveys or census surveys , then we obtain primary data by either through observation or
through direct communication with respondents in one form or another or through personal
interviews

Primary Data is the first hand data collected by following ways : -

1. Personal Interview : -
By interviewing the Branch Manager of the bank, essentials for loan sanctioning
were understood.

2. Observation : -
By observing the working of manager as well as employees in a bank, the actual
procedure of fixed deposit was understood.

3. Discussion Method :-
By discussing with branch manager, Pravin Gandole, and staff Kale mam, Kulkarni
mam and Kotkar sir the information was gathered about mutual fund.

2) Secondary Data:

Secondary data is the data that are already available i.e. they refer to the data which
have already been collected and analyzed the by someone. After doing the data collection in
 primary data, the researcher did the collection through the secondary data. In this there are
several types such as Secondary Data is the readymade or readily available data obtained
from following sources:

1. Internet : -
The use of internet was beneficial for knowing the history & functioning of HDFC
Securities as well as theory of fixed deposit Scheme.

2. Books :-
Books are the easily available sources of data. By referring the books from college
library & Bank, the required information for project work is collected.
DATA ANALYSIS & INTERPRETATION

HDFC Mutual Fund

HDFC Asset Management Company Ltd (AMC) was incorporated under the
Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset
Management Company for the HDFC Mutual Fund by SEBI on June 30, 2000.
The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg,
169, Backbay Reclamation, Churchgate, Mumbai - 400 020.
In terms of the Investment Management Agreement, the Trustee has appointed the AMC to
manage the Mutual Fund.
As per the terms of the Investment Management Agreement, the AMC will conduct the
operations of the Mutual Fund and manage assets of the schemes, including the schemes
launched from time to time.
The present shareholding pattern of the AMC is as follows:

% of the paid up
Particulars
capital
HDFC Limited 50.10
Standard Life Investments
49.90
Limited

% of Paid up Capital
HDFC Standered Life Investment Ltd.

5 %
5 %
HDFC Capital Builder
Fund seeks to invest in companies that are priced below their fair value thereby
generating capital appreciation in the long-term.

Investment Focus
The investment focus of the scheme is to achieve capital appreciation in the long
term. Basic Scheme Information

Nature of Open Ended Equity Growth Scheme

Scheme
Inception Date. 01 February, 1994
Entry Load. •In respect of each purchase / switchin of Units less than Rs. 5
(any amount) crore in value, an Entry Load of 2.25% is payable.

• In respect of each purchase / switchin of Units equal to or

greater than Rs.
5 crore in value, no Entry Load is payable.
Exit Load.
(any amount) NIL
Minimum Rs.5000 and in multiples of Rs.100 thereof to open an account /
Application folio. Additional purchases is Rs. 1000 and in multiples of Rs.
Amount. 100 thereof.
Systematic Minimum Amount Rs. 500 per month for 12 months,Rs. 1000
Investment Plan per month for 6 months
Systematic
NA
Withdrawal Plan
Net Asset Value
Every Day.
Periodicity.
Option/Plan Dividend Plan, Growth Plan
Rs.952.82 Cr.(February 28, 2006)
Net Asset
Benchmark
S&P CNX 500
Stated Asset Allocation

Equities and Equity Related Instruments 80% - 100%

Debt & Money Market Instruments 0% - 20%

The Scheme may also invest upto 25% of net assets of the Scheme in derivatives
such as Futures & Options and such other derivative instruments as may be introduced from
time to time for the purpose of hedging and portfolio balancing and other uses as may be
permitted under the regulations and guidelines.
The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets,
in overseas markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds
and mutual funds and such other instruments as may be allowed under the Regulations from
time to time. Also refer to the Section on Policy on offshore Investments by the Scheme(s).
Subject to the Regulations and the applicable guidelines, the Scheme may, engage in Stock
Lending activities. Also refer to Section on Stock Lending by the Fund.
If the investment in equities and related instruments falls below 70% of the portfolio of the
Scheme at any point in time, it would be endeavoured to review and rebalance the
composition.
Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund,
following a review of its overall strategy, had decided to divest its Asset Management
business in India. The AMC had entered into an agreement with ZIC to acquire business.
After obtaining the regulatory approvals, Zurich India's all Mutual Fund migrated to HDFC
Mutual Fund on June 19, 2003.

Sponsors
Housing Development Finance Corporation Limited (HDFC)

HDFC was incorporated in 1977 as the first specialized housing finance institution in India.
HDFC provides financial assistance to individuals, corporate and developers for the purchase
or construction of residential housing. It also provides property related services (e.g. property
identification, sales services and valuation), training and consultancy. Of these activities,
housing finance remains the dominant activity. HDFC currently has a client base of over
8,00,000 borrowers, 12,00,000 depositors, 92,000 shareholders and 50,000 deposit agents.
HDFC raises funds from international agencies such as the World Bank, IFC (Washington),
USAID, CDC, ADB and KfW, domestic term loans from banks and insurance companies,
bonds and deposits. HDFC has received the highest rating for its bonds and deposits program
for the ninth year in succession. HDFC Standard Life Insurance Company Limited, promoted
by HDFC was the first life insurance company in the private sector to be granted a Certificate
of Registration (on October 23, 2000) by the Insurance Regulatory and Development
Authority to transact life insurance business in India Standard Life Investments Limited

he Standard Life Assurance Company was established in 1825 and has considerable
experience in global financial markets. In 1998, Standard Life Investments Limited became
the dedicated investment management company of the Standard Life Group and is owned
100% by The Standard Life Assurance Company. With global assets under management of
approximately US$186.45 billion as at March 31, 2005, 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. With its headquarters in
Edinburgh, Standard Life Investments Limited has an extensive and developing global
presence with operations in the United Kingdom, Ireland, Canada, USA, China, Korea and
Hong Kong. In order to meet the different needs and risk profiles of its clients, Standard Life
Investments Limited manages a diverse portfolio covering all of the major markets world-
wide, which includes a range of private and public equities, government and company bonds,
property investments and various derivative instruments. The company's current holdings in
UK equities account for approximately 2% of the market capitalization of the London Stock
Exchange.
 HDFC EQUITY FUND

HDFC Equity scheme seeks to provide long-term capital appreciation by predominantly

investing in high growth companies.

Investment Focus
The investment focus of the scheme is to achieve capital appreciation.

Basic Scheme Information

Nature of Scheme Open Ended Equity Growth Scheme

Inception Date. 01 January, 1995
Entry Load. •In respect of each purchase / switchin of Units less than Rs. 5 crore
(any amount) in value, an Entry Load of 2.25% is payable.
• In respect of each purchase / switchin of Units equal to or great than
Rs. 5 crore in value, no Entry Load is payable.
Exit Load.
(any amount) NIL
Minimum Rs.5000 and in multiples of Rs.100 thereof to open an account / folio.
Application Additional purchases is Rs. 1000 and in multiples of Rs. 100 thereof.
Amount.
Systematic Minimum Amount Rs. 500 per month for 12months,Rs. 1000 per
Investment Plan month for 6 months
Systematic
NA
Withdrawal Plan
Net Asset Value
Every Day.
Periodicity.
Option/Plan Dividend Plan, Growth Plan
Net Asset Rs.2,814.30 Cr.(June 30, 2006)
Benchmark S&P CNX 500
Equities and Equity Related Instruments 80% - 100%

Debt & Money Market Instruments 0% - 20%

Stated Asset Allocation

The Scheme may also invest upto 25% of net assets of the Scheme in derivatives such
as Futures & Options and such other derivative instruments as may be introduced from time
to time for the purpose of hedging and portfolio balancing and other uses as may be permitted
under the Regulations.
The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets,
in overseas markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds
and mutual funds and such other instruments as may be allowed under the Regulations from
time to time. Also refer to the Section on Policy on off-shore Investments by the Scheme(s).
Subject to the Regulations and the applicable guidelines, the Scheme may, engage in Stock
Lending activities. Also refer to Section on Stock Lending by the Fund.
If the investment in equities and related instruments falls below 70% of the portfolio of the
Scheme at any point in time, it would be endeavoured to review and rebalance the
composition.

HDFC LONG TERM ADVANTAGES

HDFC Long Term Advantage Fund primary objective is to generate long term capital
appreciation from a portfolio that is invested predominantly in equity and equity related
instruments.

Basic Scheme Information

Nature of Scheme Open Ended Equity Linked Savings Scheme
Inception Date. 01 January, 2001
Entry Load. •In respect of each purchase / switchin of Units less than Rs. 5 crore
(any amount) in value, an Entry Load of 2.25% is payable.

• In respect of each purchase / switchin of Units equal to or great than

Rs. 5 crore in value, no Entry Load is payable.

Exit Load.
(any amount) NIL
Units purchased cannot be assigned / transferred / pledged / redeemed
Lock-In-Period / switched out until completion of 3 years from the date of allotment
of the respective Unit. The AMC reserves the right to change the
Lock-in Period prospectively from time to time to the extent
permitted under the Equity Linked Savings Scheme, 1992 as
amended from time to time.
Minimum
Application Rs.500 and in multiples of Rs.500 thereof to open an account / folio.
Amount.
Systematic Minimum Amount Rs. 500 per month for 12 months,Rs. 1000 per
Investment Plan month for 6 months
Systematic
NA
Withdrawal Plan
Net Asset Value
Every Day.
Periodicity.
Option/Plan Dividend Plan, Growth Plan

Net Asset Rs. 348.39 Cr.(February 28, 2006)

Benchmark Sensex

Stated Asset Allocation

 Equities and Equity Related Instruments 80% - 100%
Debt & Money Market Instruments 0% - 20%

The funds collected under the Scheme shall be invested in equities,

cumulative convertible preference shares and fully convertible debentures and
bonds of companies. Investment may be made in partly convertible debentures
and bonds including those issued on a rights basis subject to the condition that,
as far as possible, the non convertible portion of the debenture so acquired or
subscribed shall be disinvested within a period of 12 months.
It shall be ensured that funds of the Scheme shall remain invested to the
extent of atleast 80% in securities specified above. In exceptional
circumstances, this requirement may be dispensed with by the AMC, in order
that the interest of the Unit holders are protected.
Pending investment of funds of the Scheme in the required manner, the
AMC may invest the funds of the Scheme in short-term money market
instruments or other liquid instruments or both. After 3 years from the date of
allotment of the Units, the Mutual Fund may hold up to 20% of net assets of the
Scheme in short-term money market instruments.
The investment approach will be based on a set of well established but
flexible principles that emphasise the concept of sustainable economic earnings
and cash return on investment as the means of valuation of companies.

HDFC PRUDENCE FUND

Investment Focus
The investment objective of the HDFC Prudence 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/ minimise any capital erosion.

Basic Scheme Information

Nature of Scheme Open Ended Balanced Scheme

Inception Date. 01 February, 1994
Entry Load. • In respect of each purchase / switch-in of Units less than Rs. 5 crore in value, an
(any amount) Entry Load of 2.25% is payable.
• In respect of each purchase / switch-in of Units equal to or greater than Rs. 5
crore in value, no Entry Load is payable.
Exit Load. In respect of each purchase/ switch-in of Units, an Exit load of 1% is payable if
(any amount) Units are redeemed / switched out within 1 year from the date of allotment.
Minimum For new investors :Rs.5000 and in multiples of Rs.100 thereafter .
Application For existing investors : Rs. 1000 and in multiples of Rs. 100 thereafter.
Amount.
Systematic
Rs.500/month - 12 months Rs.1000/month - 6 months
Investment Plan
Systematic A minimum of Rs. 500 can be withdrawn every month or quarter by issuing
Withdrawal Plan advance instructions to the Registrars at any time.
Net Asset Value
Every Day.
Periodicity.
Dividend Plan, Growth Plan, The Dividend Plan offers Dividend Payout and
Option/Plan
Reinvestment Facility
Net Asset Rs. 2,007.31 Cr. (31 October, 2006)
Benchmark Crisil Balanced

Stated Asset Allocation

 Equities and equity related instruments including
40% -75%
derivatives
25%-60%
Debt & Money Market Instruments (Investment in Securitised debt, if
undertaken,would not exceed

Scheme Highlights

In such times when the interest rates are high, investment in debt would be more
attractive versus equities and accordingly the Fund is likely to increase the debt component in
the Scheme's portfolio. Similarly in times when the interest rates are low and the equity
valuations are cheap, the Scheme is likely to reduce exposure to debt and increase exposure
to equities. In addition to debt and equities the scheme will also invest in money market
instruments. The exact proportion in money market instruments will be a function of the
liquidity needs and the attractiveness of the debt/ equity markets. At times when neither the
debt market nor equities are attractive for investment, more resources may be temporarily
invested in money market investments to be invested in debt/ equities at a more appropriate
time.
The Scheme may also invest upto 25% of net assets of the Scheme in derivatives such
as Futures & Options and such other derivative instruments as may be introduced from time
to time for the purpose of hedging and portfolio balancing and other uses as may be permitted
under the Regulations and Guidelines.
The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets,
in overseas markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds
and mutual funds and such other instruments as may be allowed under the Regulations from
time to time. Also refer to the Section on Policy on off-shore Investments by the Scheme(s).
Subject to the Regulations and the applicable guidelines, the Scheme may, engage in Stock
Lending activities. Also refer to Section on Stock Lending by the Fund.
If the investment in equities and related instruments falls below 40% of the portfolio or rises
above 60% of the portfolio of the Scheme at any point in time, it would be endeavoured to
review and rebalance the composition.
Notwithstanding anything stated above, subject to the regulations, the asset allocation pattern
indicated above may change from time to time, keeping in view market conditions, market
opportunities, applicable regulations and political and economic factors. It may be clearly
understood that the percentages stated above are only indicative and are not absolute and that
they can vary substantially depending upon the perception of the AMC, the intention being at
all times to seek to protect the NAV of the scheme. Such changes will be for short term and
defensive considerations.
Provided further and subject to the above, any change in the asset allocation affecting
the investment profile of the Scheme and amounting to a change in the Fundamental
Attributes of the Scheme shall be effected in accordance with sub-regulation (15A) of
regulation 18 of SEBI regulations.

Investment Strategy & Risk Control

As outlined above, the investments in the Scheme will comprise both debt and equities. The
Fund would invest in Debt instruments such as Government securities, money market
instruments, securitised debts, corporate debentures and bonds, preference shares, quasi
Government bonds, and in equity shares. In the long term, the mix between debt instruments
and equity instruments is targeted between 60:40 and 40:60 respectively. The exact mix will
be a function of interest rates, equity valuations, reserves position, risk taking capacity of the
portfolio without compromising the consistency of dividend pay out (in the case of Dividend
Plan), need for capital preservation and the need to generate capital appreciation.

HDFC TAXSAVER

HDFC Taxsaver offers a rare combination of low risk and high returns. One of the
least volatile fund in the equity related tax planning category, HDFC Taxsaver has delivered
43.07 per cent annual return since launch in March 1996. No other equity fund is even near to
this long-term performance record.
Fund Objective:
The investment objective of the Scheme is to achieve long term growth of capital.

Basic Scheme Information

Nature of Scheme Open Ended Equity Linked Savings Scheme

Inception Date. Mar 31, 1996
• In respect of each purchase / switchin of Units
less than Rs. 5 crore in value, an Entry Load of
Entry Load.
2.25% is payable.
(as a % of the
• In respect of each purchase / switchin of Units
Applicable NAV)
equal to or great than Rs. 5 crore in value, no Entry
Load is payable.
Exit Load.
(as a % of the Nil
Applicable NAV)
Minimum
Rs.500 and in multiples of Rs.100 thereof to open an
Application
account / folio.
Amount.
Lock In Period. 3 Years
Net Asset Value
Every Business Day.
Periodicity.
Option/Plan Dividend Plan, Growth Plan

Stated Asset Allocation

Equities and Equity Related Instruments 80%

Debt & Money Market Instruments 20%

The Scheme may also invest upto 25% of net assets of the Scheme in derivatives such
as Futures & Options and such other derivative instruments as may be introduced from time
to time for the purpose of hedging and portfolio balancing and and other uses as may be
permitted under the regulations and guidelines.
The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in
overseas markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds and
mutual funds and such other instruments as may be allowed under the Regulations from time
to time.
Subject to the Regulations and the applicable guidelines, the Scheme may, engage in
Stock Lending activities. Also refer to Section on Stock Lending by the Fund.
If the investment in equities and related instruments falls below 80% of the portfolio of the
Scheme at any point in time, it would be endeavoured to review and rebalance the
composition.
Keeping in view market conditions, market opportunities, the HDFC TaxSaver can
change it's asset allocation pattern. The current allocation pattern is just only indicative and
not absolute, can vary substantially depending upon the perception of the AMC

HDFC TOP 200

Investment Focus
The investment objective of the HDFC Top 200 Fund is to generate long term capital
appreciation from a portfolio of equity and equity-linked instruments primarily drawn from
the companies in BSE 200 index.

Basic Scheme Information

Nature of Scheme Open Ended Growth Scheme

Inception Date. 11 October, 1996
Entry Load. • In respect of each purchase / switchin of Units less than Rs. 5 crore in
(any amount) value, an Entry Load of 2.25% is payable.
• In respect of each purchase / switchin of Units equal to or greater
than Rs.
5 crore in value, no Entry Load is payable.
Exit Load. In respect of each purchase/ switchin of Units, an Exit load of 1% is
(any amount) payable if Units are redeemed / switched out within 1 year from the
date of allotment.
Minimum For new investors :Rs.5000 and in multiples of Rs.100 thereafter .
Application For existing investors : Rs. 1000 and in multiples of Rs. 100
Amount. thereafter.
Systematic
Rs.500/month - 12 months Rs.1000/month - 6 months
Investment Plan
Systematic A minimum of Rs. 500 can be withdrawn every month or quarter by
Withdrawal Plan issuing advance instructions to the Registrars at any time.
Net Asset Value
Every Day.
Periodicity.
Dividend Plan, Growth Plan, The Dividend Plan offers Dividend
Option/Plan
Payout and Reinvestment Facility
Net Asset 1,572.48 Cr. (31 October, 2006)
Benchmark BSE 200
Stated Asset Allocation

Equities and equity related instruments including 90%-100%

derivatives
Debt & Money Market Instruments 10%

Scheme Highlights
The Scheme may also invest upto 25% of net assets of the Scheme in derivatives such
as Futures & Options and such other derivative instruments as may be introduced from time
to time for the purpose of hedging and portfolio balancing and and other uses as may be
permitted under the regulations and guidelines.
 The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets,
in overseas markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds
and mutual funds and such other instruments as may be allowed under the Regulations from
time to time.
Subject to the Regulations and the applicable guidelines, the Scheme may, engage in
Stock Lending activities. Also refer to Section on Stock Lending by the Fund.
If the investment in equities and related instruments falls below 65% of the portfolio of the
Scheme at any point in time, it would be endeavoured to review and rebalance the
composition.
Notwithstanding anything stated above, subject to the regulations, the asset allocation
pattern indicated above may change from time to time, keeping in view market conditions,
market opportunities, applicable regulations and political and economic factors. It may be
clearly understood that the percentages stated above are only indicative and are not absolute
and that they can vary substantially depending upon the perception of the AMC, the intention
being at all times to seek to protect the NAV of the scheme. Such changes will be for short
term and defensive considerations.
The Trustee may from time to time at their absolute discretion review and modify the
strategy, provided such modification is in accordance with the Regulations or in the event of
a discontinuation of or change in the compilation or the constituents of the BSE 200 Index.
Provided further and subject to the above, any change in the asset allocation affecting
the investment profile of the Scheme and amounting to a change in the Fundamental
Attributes of the Scheme shall be effected in accordance with sub-regulation (15A) of
regulation 18 of SEBI regulations.

Investment Strategy & Risk Control

The investment strategy of primarily restricting the equity portfolio to the BSE 200
Index scrips is intended to reduce risks while maintaining steady growth. Stock specific risk
will be minimised by investing only in those companies / industries that have been
thoroughly researched by the investment manager's research team. Risk will also be reduced
through a diversification of the portfolio.

Fund Manager
Mr. Prashant Jain
CONCLUSION
 FINDINGS & CONCLUSION

1.Due to the offering more profitable suitable schemes to the customer has attracted towards
the HDFC Securities for the investment.

2.Mostly people invest their money in mutual fund its help to increase the higher returns .

3.The appropriate maintenance of portfolio management helps to create strong position for
the mutual fund

4.With compare to the other securities the HDFC Securities is providing higher rate of
returns to its mutual funds.

5.Now many people invest their money in insurance, mutual fund, share market for getting
more advanteges and profit.
SUGGESTION
 SUGGESTIONS

1. The firm should do more promotional activity to attract the consumer.

2. The employees must be given the total knowledge about the product so that when he interacts
with the customer he may be able to solve all queries about the scheme of the customer.

3. The rate of return should be increase to attract more consumers should be benefited with
optimum return.

4. The HDFC Securities should create its image in the market for that they should increase its
products range better and superior than the other securities
BIBLOGRAPHY
 BIBLOGRAHY

• Internet sites

1. www.hdfcbank.com
2. www.hdfcsec.com
3. www.moneycontrol.com