Presentation

On

Mutual Fund

Concept of Mutual Fund

A Mutual fund is a common pool of money into which investors place their contributions that are to be invested in accordance with a stated objective.

Mutual Fund Operation Flow Chart

History of Mutual Fund Industry

Inception of UTI (Unit Trust of India) in 1963. It started its operation in July 1964 Introduction of Public Sector MF Institution in 1987 - LIC & GIC in 1987 - SBI MF June 1987 - Canbank MF December 1987, - Punjab National Bank MF August 1989 - Bank of India MF June 1990 & - Bank of Baroda MF Oct 1992 Introduction of Private MF institution in 1993

Classification of Mutual Fund

Why one should invest inMutual fund? Portfolio Diversification Professional Management Liquidity Variety Tax Benefits

Transparency

BANK’S FD V/S MUTUAL FUNDS

BANKS MUTUAL FUNDS

Returns low Better

Administrative expenses

High low

Risk Low Moderate

Investment options Less More

Network High penetration Low but improving

Liquidity At a cost Better

Quality of assets Not transparent Transparent

Interest calculation Minimum balance between 10th. 

& 30th. Of every month

Everyday

Mutual Fund Industry Graph:-

Current Market Scenario:- Total market capitalization or Asset Under Management of

Mutual Fund industry in India as on 31st Dec.2008 is Rs.421114.61 Crore.

- Reliance Mutual Fund AMC alone handling around Rs.70,208.10 Crore as on 31st Dec.2008 & ranked

first in terms of total AUM.

Top 5 Fund Houses in Terms of Total AUM managed:-

Mutual Fund Name

Corpus as on Dec 31, 2008

Corpus as on Nov31, 2008

Net inc/dec in corpus

Reliance Mutual Fund

70,208.10 67,815.86 2392.241

HDFC Mutual Fund 46,757.45 44,262.00 2495.45

UTI Mutual Fund 42,548.17 38,358.14 4190.026

ICICI Prudential Mutual Fund

41,877.52 37,055.68 4821.844

Birla Mutual Fund 36,565.19 31,900.95 4664.233

Amount in Rs. Crore

HDFC Asset Management Company Ltd. (AMC)

HDFC Asset Management Company Ltd. (AMC) 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 July 3, 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

• The present equity shareholding pattern of the AMC is

as follows:-

Particulars % of the paid up

equity capital

Housing Development Finance Corporation Limited 60

Standard Life Investments Limited 40

Vision Statement

Why HDFC Mutual Fund? HDFC Mutual Fund is one of the largest mutual funds and

well-established fund house in the country with consistent and above average fund performance across categories since its incorporation on December 10, 1999. While our past experience does make us a veteran, but when it comes to investments, we have never believed that the experience is enough.

Our Investment Philosophy The single most important factor that drives HDFC Mutual

Fund is its belief to give the investor the chance to profitably invest in the financial market, without constantly worrying about the market swings.

To realize this belief, HDFC Mutual Fund has set up the infrastructure required to conduct all the fundamental research and back it up with effective analysis. Our strong emphasis on managing and controlling portfolio risk avoids chasing the latest “fads” and trends.

We Offer We believe, that, by giving the investor long-term benefits,

we have to constantly review the markets for new trends, to identify new growth sectors and share this knowledge with our investors in the form of product offerings.

We have come up with various products across asset and risk categories to enable investors to invest in line with their investment objectives and risk taking capacity. Besides, we also offer Portfolio Management Services.

HDFC Asset Management Company (AMC) is the first AMC in India to have been assigned the ‘CRISIL Fund House Level – 1’ rating.

This is its highest Fund Governance and Process Quality Rating which reflects the highest governance levels and fund management practices at HDFC AMC.

It is the only fund house to have been assigned this rating for two years in succession

Our Achievements

Selection of Three Funds for Study

Funds which are selected for study are;

- For Equity Related fund

HDFC Top 200 Fund Investment Objective:

To generate long term capital appreciation from a portfolio of equity and equity-linked instruments primarily drawn from the companies in BSE 200 index.

Nature of Scheme :- Open Ended Growth Scheme Inception Date :- October 11, 1996 Option/Plan :- Dividend Plan, Growth Plan.

The Dividend Plan offers Dividend Payout

and Reinvestment Facility. Fund Manager :- Mr. Prashant Jain (since Jun19, 03)* Benchmark :- BSE 200

Sr.No Asset Type (% of Portfolio ) Risk Profile

1. Equities and Equity Related Instruments

Upto 100% (including use of derivatives for hedging and other uses as permitted by prevailing SEBI Regulations)

Medium to

High

2. Debt & Money Market

Instruments

Balance in Debt & Money Market

Instruments Low to

Medium

The asset allocation under the Scheme will be as follows :-

Investment Pattern

Portfolio- Top 10 Holding (as at Nov 30, 2008)

HDFC Core & Satellite Fund:- Investment Objective: To generate capital appreciation through equity investment in

companies whose shares are quoting at prices below their true level.

Nature of Scheme :- Open Ended Growth Scheme Inception Date :- Sept 17, 2007 Option/Plan :- Dividend Plan, Growth Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility. Fund Manager :- Mr. Vinay Kulkarni (since Nov21, 06)* Benchmark :- BSE 200

Portfolio- Top 10 Holding (as at Nov 30, 2008)

HDFC Capital Builder Fund Investment Objective: To achieve capital appreciation in the long term.

Nature of Scheme :- Open Ended Growth Scheme Inception Date :- Feb 01, 1994 Option/Plan :- Dividend Plan, Growth Plan.

The Dividend Plan offers Dividend

Payout and Reinvestment Facility. Fund Manager :- Mr. Chirag Setalvad (since Apr2,2007)* Benchmark :- S & P CNX 500

Portfolio- Top 10 Holding (as at Nov 30, 2008)

Best recent performer among the three funds

HDFC Top 200 Fund

HDFC Core & Satellite Fund:-

HDFC Capital Builder Fund

Conclusion:-

Looking at the performance of all the three funds of last 1 year we can say that HDFC Top 200 Fund is the top performer among the three funds

Funds which are selected for study are:-

- For Hybrid Fund

HDFC Prudence Fund Investment Objective:-

The investment objective of the Scheme is to provide periodic returns and capital appreciation over a long period of time, from a judicious mix of equity and debt investments, with the aim to prevent/ minimise any capital erosion.

Nature of Scheme :- Open Ended Balanced Scheme Inception Date :- February 01, 1994 Option/Plan :- Dividend Plan, Growth Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility Fund Manager :- Mr. Prashant Jain (since Jun19, 03)*

Benchmark :- CRISIL Balanced Fund Index

Investment Pattern

The asset allocation under the Scheme will be as follows :-

Sr.No Type of Instruments Normal Allocation

(% of Net Assets) Risk Profile

1. Equities and Equity Related Instruments

40 - 75% Medium to

High 2. Debt & Money

Market Instruments25 - 60% Low to

Medium

Portfolio- Top 10 Holding (as at Nov 30, 2008)

HDFC Balanced Fund Investment Objective:-

To generate capital appreciation along with current income from a combined portfolio of equity & equity-related and debt & money market instruments.

Nature of Scheme :- Open Ended Balanced Scheme Inception Date :- Sep 11,2000Option/Plan :- Dividend Plan, Growth Plan. The Dividend Plan offers Dividend

Payout and Reinvestment FacilityFund Manager :- Mr. Chirag Setalvad (since Apr2,2007)* Benchmark :- CRISIL Balanced Fund Index

Portfolio- Top 10 Holding (as at Nov 30, 2008)

HDFC Children’s Gift Fund(Investment Plan) Investment Objective:- The primary objective of the scheme is to generate long term capital

appreciation.

Nature of Scheme :- Open Ended Balanced Scheme Inception Date :- March 2, 2001. Option/Plan :- Dividend Plan, Growth Plan. The Dividend Plan offers

Dividend Pay and Reinvestment Facility

Fund Manager :- Mr. Chirag Setalvad (since Apr2,2007)*

Benchmark :- CRISIL Balanced Fund Index

Portfolio- Top 10 Holding (as at Nov 30, 2008)

Best recent performer among the three funds

HDFC Prudence Fund

HDFC Children’s Gift Fund(Investment Plan)

HDFC Balanced Fund

Conclusion:-

Looking at the performance of all the three funds of last 1 year we can say that HDFC Balanced Fund is the top performer among the three funds

THANK

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