Final Report on HDFC Mutual Fund by RAJ
Transcript of Final Report on HDFC Mutual Fund by RAJ
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A ProjectReport
OnPERFORMANCE ANALYSIS
OF SCHEMES OF
HDFC MUTUAL
Submitted to
In partial fulfillment for the course ofPost Graduate Diploma in Management
Under the Supervision of: Submitted By:
Prof. MEENU BALI YAN RAJ KISHOR VERMA
Faculty(Finance) Batch: PGDM 2009-2011
Roll No: 0911101037
Mangalmay Institute of Management Studies (Greater Noida)
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INDEX
CH .
No.
Parti culars Page No.
Certi fi cate from the Mentor i
Declaration 4
Preface 5
Acknowledgement 6
Objective of study 7
1 Introduction 8-18
1.1 Introduction 9
1.2 What is Mutual F und 10
1.3 How is a mutual fund set up? 11
1.4 What is Net Asset Value (NAV) of a scheme? 11
1.5 Scope for Development of Mutual Fund 12
1.6Benefi ts of Mutual F unds
12-171.7 I nvestment criteria 18
2 About HDFC Mutual F und. 20-29
2.1 Why HDFC Mutual Fund 21
2.2 Sponsors 22-23
2.3 Trustee 23
2.4 Achi evements and Awards 24-25
2.5 HDFC Mutual Fund Product 26-27
2.6 Product of Mutual Fund Categories Wise 28-29
3 Research Methodology. 30-33
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3.1 Research Design. 31-32
3.2 Data Coll ection. 32-33
4 Analysis of Data 34-51
4.1 HDFC Growth Fund 354.2 I nvestment Objective 36
4.3 I nvestment Pattern 37
4.4 I nvestment Strategy 38
4.5 Portfol io - Holdings (as on February 28, 2011) 40
4.6 Returns 41
4.7 SIP Returns 41-42
4.8HDFC Growth Fund - Growth Returns
43-444.9 HDFC GrowthFund - Growth Holdings 45
4.9.1 Sectoral Holdings 46
4.9.2 Asset Allocations 47
5Findings
53
6 Conclusion 54-55
7 Recommendation And Suggestion 56-58
8 Biblography 59-60
9 THANKS 61
http://money.sulekha.com/hdfc-growth-fund-growth_mutual-fund_returnshttp://money.sulekha.com/hdfc-growth-fund-growth_mutual-fund_holdingshttp://money.sulekha.com/hdfc-growth-fund-growth_mutual-fund_holdingshttp://money.sulekha.com/hdfc-growth-fund-growth_mutual-fund_returns -
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I, undersigned Mr. Raj Kishor Verma, hereby declare that the project
report entitled PERFORMANCE ANALYSIS OF SCHEMES OF HDFC
MUTUAL FUNAD under the guidance of PROF. MEENU BALIYAN
submitted in partial fulfillment of the requirements for the award of the degree of
Post Graduate Diploma in Management, from Mangalmay Institute of
Management Study is my original workresearch studyCarried out during
24th
May,2010 to 24th July, 2010 and not submitted for the award of any other
degree/diploma/fellowship or other similar titles or prizes to any other
institution/organization or university by any other person.
Signature
Raj Kishor Verma0911101037
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Practice makes it more perfect
The customers are very important and play a very crucial role in any process of
marketing. Today the customers are kings of the market because the customers
loyalty and customers preference are built by the products and services offered to the
customers and they seek for more benefits and moneys worth for the amount they
spend. But these services and products are delivered to the end customers only by the
Retailers who work as the end medium in the whole chain of sales. That is where the
concept of Retailers preference and Retailers behaviour comes because the Retailers
make the marketers rethink about designing their services; because of the important
role they play in the whole chain. They have to think about the market strategies,
Retailer behaviour, Retailers taste etc also. Many marketers are smart enough to
understand Retailers needs, wants and demands and perform beyond their expectation
i.e. they delight them. it provides them growth , profitability and creativity with lot of
inventions
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It is my pleasure to extend my deep gratitude to Prof. Meenu Baliyan,
Faculty Guide, Mangalmay I nstitute of Management Studies, Gr. Noida,
for the help, cooperation and guidance received from her throughout the
tenure of this project.
I would like to take this opportunity to thank all other faculty members at
Mangalmay Institute of Management Studies, Gr. Noida, U.P, for their
cooperation.
Finally, I would also like to take this opportunity to thank all Executives ofREIGARE Securi ticewho took out time to go through our documents and provideme positive criticism. The project would not have been a value addition without thehelp of the above stated people.
Raj Kishor VermaMIMSRoll no. 0911101037
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OBJECTIVE OF THE STUDY
Indian financial system has been expiring the vast effect of globalization i.e.
drastic interest rate cut, political disturbances, security scam etc have scattered the
common investors perception in selecting various investment portfolio. Most of the
security holders have lost their confidence in newly come-up corporate sectors for
investment. Looking to the situation, it is quite encouraging to analyze how the HDFC
Mutual Fund able to trap the deposits by introducing various schemes and how it
protects the interest of the investors.
The main study is based on the performance and analysis of various schemes
with reference to HDFC Mutual Fund that is a leading mutual fund industry in India.
The total performance analysis of financial instruments with reference to
the HDFC Mutual Fund has got objectives. This are as follows:-
To know the performance of the different schemes.
The comparative study of HDFC Mutual Fund with other mutual
funds.
To know the investment pattern of the investors in different
schemes.
The benefits made from the investment on the different schemes.
To know the ranking of the HDFC Mutual Fund Schemes.
To know the diversify portfolio of HDFC Mutual Fund.
To know the service which HDFC Mutual Fund is providing to its
investors with compare to other mutual funds.
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INTRODUCTION
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INTRODUCTION
The financial market plays a crucial role in the in the economic
development of a country b y facilitating the allocation of scarce resources.
Financial markets essentially involve the allocation of resources. This can
be thought of as the bra in of the en tire ec onomi c sys tem, the locu s of
central decision-making; if they fail, not only will the sectors profit be
lower than would otherwise have been, but the performance of the entire
economic system may be impaired.
The efficiency of financial market how ever, depends on the existence of
active and efficient financial intermediaries in the system. Deposit taking
institutional investor is the important financial intermediaries involved in
the task of allocating assets. Structural changes in the financial market
have induced a reverse trend in financial intermediation, i.e. financial
disintermediation, in which the central role of banking is being taken over
by inves tment institutions and ins titut ional inves tors . The shift from a
credit-based system to a financial has initiated the process of
disintermediation, and capital market based factors like insuran ce, pension
funds and mutual funds are increasingly playing the central role.
The reforms have successfully dismantled the entry barriers, with the
result that today there are domestic and foreign financial institutions, like
mutual funds, broking firms and insurance companies, operating in the
Indian market. The introduction of capital adequacy norms, prudential
regulation and world class regulatory mechanisms to protect the interest of
investor, besides the strict requirement of disclosure, have given a boost
to the confidence of domestic and foreign investors. The Indian economy
has slowly integrated itself with the global econom y and financial market.
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1.What is a Mutual Fund?
Mutual fund is a mechanism for pooling the resources by issuing units to the investors
and investing funds in securities in accordance with objectives as disclosed in offer
document.
Investments in securities are spread across a wide cross-section of industries and
sectors and thus the risk is reduced. Diversification reduces the risk because all stocks
may not move in the same direction in the same proportion at the same time. Mutual
fund issues units to the investors in accordance with quantum of money invested by
them. Investors of mutual funds are known as unit holders. The profits or losses are
shared by the investors in proportion to their investments. The mutual funds normally
come out with a number of schemes with different investment objectives which are
launched from time to time.
A mutual fund is required to be registered with Securities and Exchange Board of
India (SEBI) which regulates securities markets before it can collect funds from the
public.
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1.1 - How is a mutual fund set up?
A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset
Management Company (AMC) and custodian. The trust is established by a sponsor or
more than one sponsor who is like promoter of a company. The trustees of the mutual
fund hold its property for the benefit of the unit holders. Asset Management Company
(AMC) approved by SEBI manages the funds by making investments in various types
of securities.
Custodian, who is registered with SEBI, holds the securities of various schemes of the
fund in its custody. The trustees are vested with the general power of superintendence
and direction over AMC. They monitor the performance and compliance of SEBI
Regulations by the mutual fund.
SEBI Regulations require that at least two thirds of the directors of trustee company
or board of trustees must be independent i.e. they should not be associated with the
sponsors. Also, 50% of the directors of AMC must be independent. All mutual funds
are required to be registered with SEBI before they launch any scheme. However,
Unit Trust of India (UTI) is not registered with SEBI (as on January 15, 2002).
1.2 - What is Net Asset Value (NAV) of a scheme?
The performance of a particular scheme of a mutual fund is denoted by Net Asset
Value (NAV).
Mutual funds invest the money collected from the investors in securities markets. In
simple words, Net Asset Value is the market value of the securities held by the
scheme. Since market value of securities changes every day, NAV of a scheme also
varies on day to day basis. The NAV per unit is the market value of securities of a
scheme divided by the total number of units of the scheme on any particular date. For
example, if the market value of securities of a mutual fund scheme is Rs 200 lakhs
and the mutual fund has issued 10 lakhs units of Rs. 10 each to the investors, then the
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NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the mutual
funds on a regular basis - daily or weekly - depending on the type of scheme.
1.3 - Scope for Development of Mutual Fund
A Mutual Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. India has a burgeoning population of middle class now estimated
around 300 million. A typical Indian middle class family can have liquid savings
ranging from Rs.2 to Rs.10 Lacs today. Investments in Banks are liquid and safe, but
with the falling rate of interest offered by Banks on Deposits, it is no longer attractive.
At best a part can be saved in bank deposits, but what is the other sources of
investment for the common man? Mutual Fund is the ready answer. Viewed in this
sense globally India is one of the best markets for Mutual Fund Business, so also for
Insurance business. This is the reason that foreign companies compete with one
another in setting up insurance and mutual fund business units in India. The sheer
magnitude of the population of educated white collar employees provides unlimited
scope for development of Mutual Fund Business in India.
1.4 - Benefits of Mutual Funds
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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 haveexplained 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.
1. Professional Management
The investor avails of the services of experienced and skilled professionals who
are backed by a dedicated investment research team which analyses the
performance and prospects of companies and selects suitable investments to
achieve the objectives of the scheme.
2. Diversification
Mutual Funds invest in a number of companies across a broad cross-section of
industries and sectors. This diversification reduces the risk because seldom do
all stocks decline at the same time and in the same proportion. You achieve this
diversification through a Mutual Fund with far less money than you can do on
your own.
3. Convenient Administration
Investing n in a Mutual Fund reduces paperwork and helps you avoid
many problems such as bad deliveries, delayed payments and unnecessary
follow up with brokers and companies. Mutual Funds save your time and
make investing easy and convenient.
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4. Return Potential
Over a medium to long-term, Mutual Funds have the potential to provide a
higher return as they invest in a diversified basket of selected securities.
5. Low Costs
Mutual Funds are a relatively less expensive way to invest compared to directly
investing in the capital markets because the benefits of scale in brokerage,
custodial and other fees translate into lower costs for investors.
6. Liquidity
In open-ended schemes, you can get your money back promptly at net asset
value related prices from the Mutual Fund itself. With close-ended schemes, you
can sell your units on a stock exchange at the prevailing market price or avail of
the facility of direct repurchase at NAV related prices which some close-ended
and interval schemes offer you periodically.
7. Transparency
You get regular information on the value of your investment in addition to
disclosure on the specific investments made by your scheme, the proportion
invested in each class of assets and the fund manager's investment strategy and
outlook.
8. Flexibility
Through features such as regular investment plans, regular withdrawal plans and
dividend reinvestment plans, you can systematically invest or withdraw funds
according to your needs and convenience.
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9. Choice of Schemes
Mutual Funds offer a family of schemes to suit your varying needs over a
lifetime.
10.Well Regulated
All Mutual Funds are registered with SEBI and they function within the
provisions of strict regulations designed to protect the interests of investors. The
operations of Mutual Funds are regularly monitored by SEBI.
11.Understanding and Managing Risk
All investments whether in shares, debentures or deposits involve risk: share
value may go down depending upon the performance of the company, the
industry, state of capital market and the economy; generally, however longer the
term, lesser the risk; companies may default in payment of interest/principal on
their deposits/bonds debentures; the rate of interest on investment may fall short
of the rate of inflation reducing the purchasing power.
While risk cannot be eliminated, skillful management can minimize risk. Mutual
fund helps to reduce risk through diversification and professional management.
The experience and expertise of Mutual Fund managers in selecting
fundamentally sound securities and timing their purchases and sales help them
to build a diversified portfolio that minimize risk and maximizes returns.
12.Tax Benefits
The incomes under Mutual Funds are much more Tax efficient than any fixed
income security due to the following benefits:-
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Section 80L of the income Tax Act ,1961 enables tax free income up to
rs 15000 and dividends from MF s are eligible for this benefit.
When you invest for over a year, the tax payable on encashment is
Long term Capitals gains tax at 20%. Once also get an indexationbenefit which has been approximately 8% per year. This reduces the
taxable income and thus decreases the tax liability.
There is also an opportunity to set off capital losses against gains from
income schemes.
Full exemption from capital gains tax as it comes under Section
54EA/EB of the income tax Act.
One has to pay tax only when he encash units, but have to pay tax on
the interest earned on other debt instruments every year on an accrual
basis, even though he receives the interest later. This generates higher
post tax returns compared to other debt instruments.
Tax is just like a monster that frightens a number of individuals through out
the nation. There are just tow way to fight with this monater:
. Conceal/Depress Income
. Make tax efficient investments.
Perhaps the second option is far better than the first as it gives the peace of
mind together with a feeling that one is a responsible citizen of the nation.
With increasing amount of awareness that is taking birth in the minds of
investors, mutual fund has become cynosure of the eye of the several
investors.
The taxes available are two kinds:
. To the mutual fund- as explained below in No 1
. To the Investor- as explained below in No 2
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1. Mutual Fund Taxation
. Mutual fund is fully exempted from the tax under Section10 (23D) of the
Income Tax Act1961.
. It receives all income without deduction at source.
. Mutual funds do not have to pay tax on trading profit, short term capital
gain, dividend income, underwriting commission, placement fees, long
term capital gains, other income, etc.
2. Benefits to the Investors
There are number of benefits that the investor of a mutual fund avail.
These are discussed as follows:
.Resident Unit Holders- In case of an individual or Hindu Undivided
Families (HUFs), income by way of dividends, if any from unit of
schemes of the fund together with other income on specified
investment/deposit are except from tax within the overall limit of
Rs.15000/- specified under Section80L of the I.T. Act,1961. Since
dividends from shares no longer invite dividend tax and hence the whole
limit is available for mutual fund dividends.
. Tax deduction at source- as per Section196A of the Income Tax Act,
1961, no deduction of tax at source is made from any income payable to
the unit holders. This implies that there is no tax deduction at source for
redemption up to any limit.
As per Section194k of the I.T.Act 1961, deduction of tax at source is not
made if the dividend income from a mutual fund does not exceed Rs10000
per annum.
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1.5 Investment criteria
Lower cost
It is a lower cost of investment as compare to other mode of investment
option in the market. Here the investor can invest a minimum of Rs500
in the scheme of ELSS (Equity Link Saving Scheme).
Less paper work
Here less paper work is require than other. The investor give his detail
information like his/her name,age,address,phone no., pan card no,
nominee name and address(in case of minor) and three full signature of
the candided.
No cash Transactions
Investor need not require paying cash, instead of cash investor has to
pay cheque or demand draft. Which help to prevent misappropriation
and also save the tax. Here the investor just writes the product name of
mutual fund and sign on it. It also saves the time.
No Age Bar
There is no age bar of investor here any age group can invest in mutual
fund. In case of minor(below 18 year) there is a nominee, so a child can
invest through his guardian and a person having age of 70 also invest in
mutual fund ,which is not possible in other investments.
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Service or any kind of income group
A service holder or any kind of income group or a student or
unemployed people can invest in mutual fund but the person is arational human being having sound knowledge of investment company.
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ABOUTHDFC MUTUAL FUND
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2.1 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 OfferWe 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.
Our Achievements
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. Over the past, we have won a number
of awards and accolades for our performance
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2.2 SPONSORS
Housing Development Finance Corporation Limited (HDFC). HDFC
was incorporated in 1977 as the first specialized Mortgage Company 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 has a client
base of around 12 lac borrowers, around 8 lac depositors, over 1.08 lac shareholders
and 50,000 deposit agents, as at March 31, 2008. HDFC has raised funds from
international agencies such as the World Bank, IFC (Washington), USAID, DEG,
ADB and KfW, international syndicated loans, 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 thirteenth 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. The Standard Life Assurance Company
was established in 1825 and has considerable experience in global financial markets.
The company was present in the Indian life insurance market from 1847 to 1938 when
agencies were set up in Kolkata and Mumbai. The company re-entered the Indian
market in 1995, when an agreement was signed with HDFC to launch an insurance
joint venture. On April 2006, the Board of The Standard Life Assurance Company
recommended that it should demutualise and Standard Life plc float on the London
Stock Exchange. At a Special General Meeting held in May voting members
overwhelmingly voted in favour of this. The Court of Session in Scotland approved
this in June and Standard Life plc floated on the London Stock Exchange on 10th July
2006. Standard Life Investments is a leading asset management company, with
approximately US$ 267 billion as at March 31, 2008, of assets under management.
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The company operates in the UK, Canada, Hong Kong, China, Korea, Ireland, Paris,
Sydney and the USA to ensure it is able to form a truly global investment view. 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
2.3 TRUSTEE
HDFC Trustee Company Limited, a company incorporated under the Companies Act,
1956 is the Trustee to HDFC Mutual Fund vide the Trust deed dated June 8, 2000, as
amended from time to time. HDFC Trustee Company Ltd is wholly owned subsidiaryof HDFC
The Board of Directors of HDFC Trustee company Limited consists
of the following eminent persons.
Mr. Anil Kumar Hirjee
Mr. James Aird
Mr. Shishir K. Diwanji
Mr. Ranjan Sanghi
Mr. V. Srinivasa Rangan
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2.4 ACHIEVEMENT AND AWARDSCNBC - TV 18 - CRISIL Mutual Fund of the Year Awards 2008 :
HDFC Prudence Fund was the only scheme that won the CNBC - TV 18 - CRISIL
Mutual Fund of the Year Award 2008 in the Most Consistent Balanced Fund under
CRISIL ~ CPRfor the calendar year 2007 (from amongst 3 schemes).
HDFC Cash Management Fund - Savings Plan was the only scheme that won the
CNBC - TV 18 - CRISIL Mutual Fund of the Year Award 2008 in the Most
Consistent Liquid Fund under CRISIL ~ CPRfor the calendar year 2007 (from
amongst 5 schemes).
HDFC Cash Management Fund - Savings Plan was the only scheme that won the
CNBC - TV 18 - CRISIL Mutual Fund of the Year Award 2008 in the Liquid
SchemeRetail Category for the calendar year 2007 (from amongst 19 schemes).
Lipper Fund Awards 2008:
HDFC Equity Fund - Growth has been awarded the 'Best Fund over Ten Years' in
the 'Equity India Category' at the Lipper Fund Awards 2008 (form amongst 23
schemes). It was awarded the Best Fund over ten years in 2006 and 2007 as well.
2008 makes it three in a row.
Lipper Fund Awards 2009 :
HDFC Equity Fund - Growth has been awarded the 'Best Fund over Ten Years' in the
'Equity India Category' (form amongst 34 schemes) and HDFC Prudence Fund
Growth Planin the Mixed Asset INR Aggressive Category (from amongst 6
schemes), have been awarded the Best Fund over 10 Years by Lipper Fund Awards
India 2009.
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ICRA Mutual Fund Awards2008 :
HDFC MF Monthly Income Plan - Long Term Plan - Ranked a Seven Star Fund
and has been awarded the Gold Award for "Best Performance" in the category of
"Open Ended Marginal Equity" for the three year period ending December 31,2007 (from amongst 27 schemes)
HDFC High Interest Fund - Short Term Plan - Ranked a Five Star Fund
indicating performance among the top 10% in the category of"Open Ended Debt -
Short Term" for one year period ending December 31, 2007 (from amongst 20
schemes).
HDFC Prudence Fund - Ranked a Five Star Fund indicatingperformance among
the top 10% in the category of"Open Ended Balanced" for the three year period
ending December 31, 2007 (from amongst 16 schemes)
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2.5 HDFC MUTUAL FUND PRODUCTS
Equity Funds
HDFC Growth Fund
HDFC Long Term Advantage Fund
HDFC Index Fund
HDFC Equity Fund
HDFC Capital Builder Fund
HDFC Tax saver
HDFC Top 200 Fund
HDFC Core & Satellite Fund
HDFC Premier Multi-Cap Fund
HDFC Long Term Equity Fund
HDFC Mid-Cap Opportunity Fund
Balanced Funds
HDFC Children's Gift Fund Investment Plan
HDFC Children's Gift Fund Savings Plan
HDFC Balanced Fund
HDFC Prudence Fund
Debt Funds
HDFC Income Fund
HDFC Liquid Fund
HDFC Gilt Fund Short Term Plan
HDFC Gilt Fund Long Term Plan
HDFC Short Term PlanHDFC Floating Rate Income Fund Short Term Plan
HDFC Floating Rate Income Fund Long Term Plan
HDFC Liquid Fund - PREMIUM PLAN
HDFC Liquid Fund - PREMIUM PLUS PLAN
HDFC Short Term Plan - PREMIUM PLAN
HDFC Short Term Plan - PREMIUM PLUS PLAN
HDFC Income Fund Premium Plan
HDFC Income Fund Premium plus Plan
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HDFC High Interest Fund
HDFC High Interest Fund - Short Term Plan
HDFC Sovereign Gilt Fund - Savings Plan
HDFC Sovereign Gilt Fund - Investment Plan
HDFC Sovereign Gilt Fund - Provident Plan
HDFC Cash Management Fund - Savings Plan
HDFC Cash Management Fund - Call Plan
HDFCMF Monthly Income Plan - Short Term Plan
HDFCMF Monthly Income Plan - Long Term Plan
HDFC Cash Management Fund - Savings Plus Plan
HDFC Multiple Yield Fund
HDFC Multiple Yield Fund Plan 2005
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2.6PRODUCTS OF MUTUAL FUND CATAGORIESWISE
EQUITY/ GROWTH FUND
CHILDRENS GIFT FUND
LIQUID FUND
DEBT/ INCOME FUND
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EQUITY/ GROWTH FUND DEBT/INCOME FUNDHDFC Growth Fund
HDFC Top 200 Fund
HDFC Core and Satellite Fund
HDFC Index Fund - Sensex Plan
HDFC Index Fund - Sensex Plus Plan
HDFC Balanced Fund
HDFC Long Term Advantage Fund
(ELSS)
HDFC Long Term Equity Fund
HDFC Infrastructure Fund
HDFC Capital Builder Fund
HDFC Premier Multi-Cap
HDFC Index Fund - Nifty Plan
HDFC Arbitrage Fund
HDFC Equity Fund
HDFC Prudence Fund
HDFC TaxSaver (ELSS)
HDFC Mid-Cap Opportunities Fund
HDFC MF Monthly Income Plan - Short
Term Plan
HDFC Multiple Yield Fund
HDFC Income Fund
HDFC Short Term Plan
HDFC Gilt Fund - Short Term Plan
HDFC Floating Rate Income Fund -Short
Term Plan
HDFC Cash Management Fund - Savings
Plus Plan
HDFC MF Monthly Income Plan - Long
Term Plan
HDFC Multiple Yield Fund - Plan 2005
HDFC High Interest Fund
HDFC High Interest Fund - Short term
Plan
HDFC Gilt Fund - Long Term Plan
HDFC Floating Rate Income Fund - Long
Term Plan
CHILDRENS GIFT FUND LIQUID FUNDHDFC Children's Gift Fund - Investment
Plan
HDFC Children's Gift Fund - Savings Plan
HDFC Liquid Fund
HDFC Liquid Fund Premium Plan
HDFC Liquid Fund Premium Plus Plan
HDFC Cash Management FundCall
HDFC Cash Management Fund - Savings
Plan
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chemeID=98376b12-22be-43da-b99b-2bd836058138http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=98376b12-22be-43da-b99b-2bd836058138http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=0a1b50b0-9de5-43cc-8042-e5861ca9a495http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=0a1b50b0-9de5-43cc-8042-e5861ca9a495http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=40a2d377-6811-447a-bc55-827a49117b7fhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=8ca76792-be82-40f0-8f25-5277ae3991f8http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=8ca76792-be82-40f0-8f25-5277ae3991f8http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=8ca76792-be82-40f0-8f25-5277ae3991f8http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=360fab99-f6ad-4245-b4e5-35505768b2c0http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=360fab99-f6ad-4245-b4e5-35505768b2c0http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=74779436-b9f5-4e86-b310-e623aa907886http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=74779436-b9f5-4e86-b310-e623aa907886http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=74779436-b9f5-4e86-b310-e623aa907886http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=286f859d-0c7f-4711-a17f-29bc77608573http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=286f859d-0c7f-4711-a17f-29bc77608573http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=286f859d-0c7f-4711-a17f-29bc77608573http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=d908c6e7-f9f6-4324-8d3d-0ac598893d92http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=d908c6e7-f9f6-4324-8d3d-0ac598893d92http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=222adc9c-3c47-45ae-80b7-aafaa8ab6bd1http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=222adc9c-3c47-45ae-80b7-aafaa8ab6bd1http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=7827e967-42f8-44cf-bd8e-b9ca28fb492fhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=7827e967-42f8-44cf-bd8e-b9ca28fb492fhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=75d96429-e80c-4c8e-8515-5e17a498dc84http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=75d96429-e80c-4c8e-8515-5e17a498dc84http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=9588ff28-b627-4d53-a130-ead8b3753f3dhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=9588ff28-b627-4d53-a130-ead8b3753f3dhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=9588ff28-b627-4d53-a130-ead8b3753f3dhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=33d0f25d-3f39-4237-a8ac-1f47a6034b38http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=33d0f25d-3f39-4237-a8ac-1f47a6034b38http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=33d0f25d-3f39-4237-a8ac-1f47a6034b38http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=33d0f25d-3f39-4237-a8ac-1f47a6034b38http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=9588ff28-b627-4d53-a130-ead8b3753f3dhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=75d96429-e80c-4c8e-8515-5e17a498dc84http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=7827e967-42f8-44cf-bd8e-b9ca28fb492fhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=222adc9c-3c47-45ae-80b7-aafaa8ab6bd1http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=d908c6e7-f9f6-4324-8d3d-0ac598893d92http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=286f859d-0c7f-4711-a17f-29bc77608573http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=286f859d-0c7f-4711-a17f-29bc77608573http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=74779436-b9f5-4e86-b310-e623aa907886http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=74779436-b9f5-4e86-b310-e623aa907886http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=360fab99-f6ad-4245-b4e5-35505768b2c0http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=8ca76792-be82-40f0-8f25-5277ae3991f8http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=8ca76792-be82-40f0-8f25-5277ae3991f8http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=40a2d377-6811-447a-bc55-827a49117b7fhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=0a1b50b0-9de5-43cc-8042-e5861ca9a495http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=98376b12-22be-43da-b99b-2bd836058138http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=98376b12-22be-43da-b99b-2bd836058138http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=1bf87ce3-3b57-4b38-8015-9d3a7a4fc2d1http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=1bf87ce3-3b57-4b38-8015-9d3a7a4fc2d1http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=ca541d4f-0440-49ff-982f-4d9382349c8bhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=ca541d4f-0440-49ff-982f-4d9382349c8bhttp://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=710548dc-1717-4647-bb79-4b9d177bd5f8http://ww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METHODOLOGYOF
THE STUDY
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3.Research M ethodology
Since the study undertaken by me is related to the PERFORMANCE NANLYSIS
OF SCHEMES OF HDFC MUTUAL FUND the means adopted for collection of
various facts and data were in the form of personal observation, officials documents,
and directly interacting with the officers concerned and also directly interacting with
the existing customers as well as new customer formed. It was an exploratory
research. Work is mainly emphasized on the secondary data. The secondary data was
obtained through the following means for the purpose of the project work.
Annual reports of companies
Journals and Magazine. Budgeted manuals
Audited balance sheet and profit and loss account.
Companys website
Previous Performance
For Every Comprehensive research a proper research methodology is indispensable &
it has to be properly conceived. The methodology adopted by me is as follows:-
3.1 Research Design
Problem Identification
@ Find out Portfolio - Holdings (as on February 28, 2011)Company wise as well as
Industry wise.
@ Find deviation of calculated from standard or Norms
@ Calculating the Investment Pattern
@ Information about firms assets, liabilities, revenue, expenditure, bankers,
Investment etc.
@ Find out the SIP Return of last 15 years.
@ Find out the HDFC Growth Fund - Growth Returns of last 5 years.@ Information about firms loan, security, stock level & other financial information.
http://money.sulekha.com/hdfc-growth-fund-growth_mutual-fund_returnshttp://money.sulekha.com/hdfc-growth-fund-growth_mutual-fund_returns -
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@ Find our Asset allocation and Sector wise holding.
@ Whether the growth oriented mutual funds are offering the advantages of
Diversification, Market timing and Selectivity of Securities to their investors
@ This study provides a proper investigation for logical and reasonable comparison
and selection of the funds.
What is Primary & Secondary Data?
Primary data are those data which are collected for the first time, taking a sample,
representing a population. It is not a published data, it is problem specific data
collected by the researcher, first time. When primary data is published by researcher,
it becomes the secondary data for everybody, other than the researcher.
Secondary data are those data, which are already published. It may be useful for
many other person than the researcher who has published it. There are many sources
of secondary data.
Informal Interviews.
Discussions with officer concerned.
3.2 Data Collection
My data collection sources was Secondary Data of HDFC EQUITY GROWTH
Mutual fund i.e:-
SECONDARY DATA
The secondary data was obtained through the following means for the purpose of the
project work.
Annual reports of companies
Journals and Magazine.
Budgeted manuals
Audited balance sheet and profit and loss account.
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Companys website
Previous Performance
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ANALYSIS OF DATA
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4.1HDFC Growth Fund
HDFC Growth fund, an open-ended growth scheme, applies an investment
approach based on a set of well established but flexible principles that
emphasize the concept of sustainable economic earnings cash return on
investment. The objective is to identify business with superior growth
prospects nd good management at a reasonable price. The five basic principles
that serve the foundation for this approach are as follows:
Focus on the long termInvestment confers proportionate ownership of the business
Maintain a margin safety
Maintain a balanced outlook on the market
Discipline approach to selling.
The investment philosophy rests on a two-pronged approach. 60-80% of the
portfolio will aim to stay invested for most of the time in large cap stocks that
satisfy the above investment criteria. This allocation to large cap stocks also
ensures greater liquidity in the portfolio. 20-40% of the portfolio will be
invested in companies of scale that are either large market share holder
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4.2 Investment Objective
The investment objective of the Scheme is to achieve capital appreciation.
Basic Scheme Information
Nature of Scheme Open Ended Growth Scheme
Inception Date January 01, 1995
Option/Plan Dividend Option,Growth Option. The DividendOption offers Dividend Payout and ReinvestmentFacility.
Entry Load
(purchase / additionalpurchase / switch-in)
NIL
(With effect from August 1, 2009)
Exit Load
(as a % of the Applicable
NAV)
In respect of each purchase / switchin of units, an ExitLoad of 1.00% is payable if Units are redeemed /switched-out within 1 year from the date ofallotment..
No Exit Load is payable if Units are redeemed /switched-out after 1 year from the date of allotment.
Minimum ApplicationAmount
For new investors :Rs.5000 and any amount thereafter.For existing investors : Rs. 1000 and any amountthereafter.
Lock-In-Period Nil
Net Asset Value
Periodicity
Every Business Day.
Redemption Proceeds Normally despatched within 3 business Days
Tax Benefits
(As per present Laws)
Please click for details
Current Expense Ratio (#)
(Effective Date 22nd May
2009)
On the first 100 crores average weekly net assets2.50%On the next 300 crores average weekly net assets2.25%On the next 300 crores average weekly net assets2.00%On the balance of the assets 1.75%
(#) Any change in the expense ratio will be updated within two working days.
http://www.hdfcfund.com/KC/ContentDisplay.aspx?ReportID=5CEFCAD6-63C3-47AE-B448-5209341FB627http://www.hdfcfund.com/KC/ContentDisplay.aspx?ReportID=5CEFCAD6-63C3-47AE-B448-5209341FB627http://www.hdfcfund.com/KC/ContentDisplay.aspx?ReportID=5CEFCAD6-63C3-47AE-B448-5209341FB627 -
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Plan Name NAV Date NAV Amount
Dividend Option 25 Mar 2011 46.5160
Growth Option 25 Mar 2011 275.3550
4.3 Investment Pattern
The asset allocation under the Scheme will be as follows :
Sr.No. Asset Type (% of Portfolio) Risk Profile
1 Equities and Equity Related Instruments 80 - 100 Medium toHigh
2 Debt & Money Market Instruments 0 - 20 Low toMedium
Investment in Securitised debt, if undertaken, would not exceed 20% of the net assets of
the scheme.
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.
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 thescheme. Such changes will be for short term and defensive considerations. Provided
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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.
4.4 Investment StrategyIn order to provide long term capital appreciation, the Scheme will invest predominantly in
growth companies. Companies selected under this portfolio would as far as practicable
consist of medium to large sized companies which:
are likely achieve above average growth than the industry;
enjoy distinct competitive advantages, and
have superior financial strengths.
The aim will be to build a portfolio, which represents a cross-section of the strong growth
companies in the prevailing market. In order to reduce the risk of volatility, the Scheme
will diversify across major industries and economic sectors.
Fund Manager:
Mr. Prashant Jain (since Jun 19, 03)
Mr. Miten Lathia - Dedicated Fund Manager - Foreign Securities
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4.5 Portfolio - Holdings (as on February 28, 2011)
Company Industry+ % to NAV
EQUITY & EQUITY RELATED
State Bank of India Banks 8.22
ICICI Bank Ltd. Banks 6.36
Reliance Industries Ltd. Petroleum Products 4.90
Tata Consultancy Services Ltd. Software 4.52
Infosys Technologies Ltd. Software 4.47
Titan Industries Ltd. Consumer NonDurables
4.31
Bank of Baroda Banks 4.24
Coal India Ltd. Minerals/Mining 3.50
Tata Steel Ltd. Ferrous Metals 2.74
GAIL (India) Ltd. Gas 2.54
Total of Top Ten Equity Holdings 45.80Total Equity & Equity Related Holdings 96.38
Total Money Market Instrument & Other
Credit Exposures (aggregated holdings in a
single issuer)
0.00
Cash margin / Earmarked cash for Futures &Options
0.32
Other Cash, Cash Equivalents and Net CurrentAssets
3.30
Grand Total 100.00
Net Assets (Rs. In Lakhs) 8,27,194.70
Note : $ Sponsor
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4.6 ReturnsHDFC
Equity Fund
(NAV as at evaluation date 28-Feb-11, Rs.261.288 Per unit)
Date Period NAV PerUnit (Rs.)
Returns(%) ^
BenchmarkReturns (%) #
March 30,2007
Last 1431 days 142.602 16.7** 7.96**
August 27,2010
Last Six months(185 days)
274.276 -4.74* -6.67*
February 26,2010
Last 1 Year (367days)
223.385 16.87** 2.88**
February 28,
2008
Last 3 Years
(1096 days)
188.246 11.54** -1.2**
February 28,2006
Last 5 Years(1826 days)
116.840 17.45** 9.81**
February 28,2001
Last 10 Years(3652 days)
19.880 29.36** 16.14**
February 28,1996
Last 15 Years(5479 days)
7.370 26.83** 12.54**
January 1,1995
Since Inception(5902 days)
10.000 22.36** 9.54**
*Absolute Returns ** Compounded Annualised Returns # S&P CNX 500 ^ Past
performance may or may not be sustained in the future
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4.7 SIP Returns
SIPInvestments
Since Inception
15 Year 10 Year 5 Year 3 Year 1 Year
TotalAmountInvested(Rs.)
194,000 180,000 120,000 60,000 36,000 12,000
Market Valueas onFebruary 28,2011 (Rs.)
2,777,138.40
2,333,906.07
615,083.91
95,703.64
54,764.97
11,813.42
Returns(Annualised)
*(%)
28.64% 30.07% 30.75% 18.77%
29.17%
-2.89%
BenchmarkReturns(Annualised)(%)#
15.01% 15.81% 18.98% 8.37% 14.13%
-12.06
%
Market Valueof SIP inBenchmark#
741,123.72 661,528.69
325,712.17
74,058.65
44,437.44
11,210.90
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-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Since
Inception
15 Year 10 Year 5 Year 3 Year 1 Year
Returns (Annualised)*(%)
Benchmark Returns
(Annualised)(%)#
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4.8 HDFC Growth Fund - Growth Returns
Duration MF Returns MF Category Returns
1 day 01.07 01.14
1 week -00.61 -00.09
1 month 02.43 -00.90
3 months 05.85 01.67
6 months 06.46 02.72
1 year 30.45 20.10
3 years 14.35 03.99
5 years 24.85 05.82
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-5
0
5
10
15
20
25
30
35
1 month 3 months 6 months 1 year 3 years 5 years
MF Returns
MF Category Returns
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4.9HDFC Growth Fund - Growth Holdings
Top Holdings as on 31 Jul 2010
Company Percentage
Infosys Technologies 6.82
ITC 5.99
ITC 5.86
Oil & Natural Gas Corporation 5.77
Infosys Technologies 5.73
7%
6%
6%
6%
5%
70%
Top Holdings as on 31 Jul 2010
Infosys Technologies
ITC
ITC
Oil & Natural Gas Corporation
Infosys Technologies
Other
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4.9.1 Sectoral Holdings
Industry Percentage
Banks-Pub Sector 8.19
Pharma-Ind. BD & Formlns 7.67
Oil Exploration 7.27
Ent. Media/Content 6.71
Computer-SW-Major 5.69
23%
22%
20%
19%
16%
Sectoral Holdings
Banks-Pub Sector
Pharma-Ind. BD & Formlns
Oil Exploration
Ent. Media/Content
Computer-SW-Major
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4.9.2 Asset Allocations
Asset Percentage
Cash 0.97
Debt & Money Market 0.76
Equity 98.27
Total 100.00
Cash
1%
Debt & Money
Market
1%
Equity
98%
Asset Allocations
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HDFC Growth Fund - Growth Holdings
All Top Holdings as on 31 Jul 2010
Company Percentage
Infosys Technologies 6.82
ITC 5.99
ITC 5.86
Oil & Natural Gas Corporation 5.77
Infosys Technologies 5.73
Infosys Technologies 5.69
ITC 5.67
ICICI Bank 5.59
ICICI Bank 5.53
Oil & Natural Gas Corporation 5.49
Oil & Natural Gas Corporation 5.33
ICICI Bank 5.26
State Bank of India 5.16
Bharat Petroleum Corporation 4.98
Bharat Petroleum Corporation
4.88
State Bank of India 4.82
State Bank of India 4.69
Bharat Petroleum Corporation 4.56
Crompton Greaves 4.51
Coromandel International
4.46
http://money.sulekha.com/infosys-technologieshttp://money.sulekha.com/infosys-technologieshttp://money.sulekha.com/itchttp://money.sulekha.com/itchttp://money.sulekha.com/itchttp://money.sulekha.com/itchttp://money.sulekha.com/oil-natural-gas-corporationhttp://money.sulekha.com/oil-natural-gas-corporationhttp://money.sulekha.com/infosys-technologieshttp://money.sulekha.com/infosys-technologieshttp://money.sulekha.com/infosys-technologieshttp://money.sulekha.com/infosys-technologieshttp://money.sulekha.com/itchttp://money.sulekha.com/itchttp://money.sulekha.com/icici-bankhttp://money.sulekha.com/icici-bankhttp://money.sulekha.com/icici-bankhttp://money.sulekha.com/icici-bankhttp://money.sulekha.com/oil-natural-gas-corporationhttp://money.sulekha.com/oil-natural-gas-corporationhttp://money.sulekha.com/oil-natural-gas-corporationhttp://money.sulekha.com/oil-natural-gas-corporationhttp://money.sulekha.com/icici-bankhttp://money.sulekha.com/icici-bankhttp://money.sulekha.com/state-bank-of-indiahttp://money.sulekha.com/state-bank-of-indiahttp://money.sulekha.com/bharat-petroleum-corporationhttp://money.sulekha.com/bharat-petroleum-corporationhttp://money.sulekha.com/bharat-petroleum-corporationhttp://money.sulekha.com/bharat-petroleum-corporationhttp://money.sulekha.com/state-bank-of-indiahttp://money.sulekha.com/state-bank-of-indiahttp://money.sulekha.com/state-bank-of-indiahttp://money.sulekha.com/state-bank-of-indiahttp://money.sulekha.com/bharat-petroleum-corporationhttp://money.sulekha.com/bharat-petroleum-corporationhttp://money.sulekha.com/crompton-greaveshttp://money.sulekha.com/crompton-greaveshttp://money.sulekha.com/coromandel-internationalhttp://money.sulekha.com/coromandel-internationalhttp://money.sulekha.com/coromandel-internationalhttp://money.sulekha.com/crompton-greaveshttp://money.sulekha.com/bharat-petroleum-corporationhttp://money.sulekha.com/state-bank-of-indiahttp://money.sulekha.com/state-bank-of-indiahttp://money.sulekha.com/bharat-petroleum-corporationhttp://money.sulekha.com/bharat-petroleum-corporationhttp://money.sulekha.com/state-bank-of-indiahttp://money.sulekha.com/icici-bankhttp://money.sulekha.com/oil-natural-gas-corporationhttp://money.sulekha.com/oil-natural-gas-corporationhttp://money.sulekha.com/icici-bankhttp://money.sulekha.com/icici-bankhttp://money.sulekha.com/itchttp://money.sulekha.com/infosys-technologieshttp://money.sulekha.com/infosys-technologieshttp://money.sulekha.com/oil-natural-gas-corporationhttp://money.sulekha.com/itchttp://money.sulekha.com/itchttp://money.sulekha.com/infosys-technologies -
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Zee Entertainment Enterprises 4.25
Sun Pharmaceutical Industries 4.23
Sun Pharmaceutical Industries
4.22
Crompton Greaves 4.16
Zee Entertainment Enterprises 4.11
Sun Pharmaceutical Industries 4.10
Crompton Greaves 4.04
Housing Development Finance Corporation
4.03
Housing Development Finance Corporation 3.94
Housing Development Finance Corporation 3.89
Zee Entertainment Enterprises 3.85
Bank of Baroda 3.73
Exide Industries
3.71
Bank of Baroda 3.44
Bank of Baroda 3.37
Coromandel International 3.32
Solar Industries India 3.15
Biocon 2.97
Exide Industries 2.90
Solar Industries India 2.89
Solar Industries India 2.75
HT Media 2.70
HT Media 2.60
http://money.sulekha.com/zee-entertainment-enterpriseshttp://money.sulekha.com/sun-pharmaceutical-industrieshttp://money.sulekha.com/sun-pharmaceutical-industrieshttp://money.sulekha.com/sun-pharmaceutical-industrieshttp://money.sulekha.com/sun-pharmaceutical-industrieshttp://money.sulekha.com/crompton-greaveshttp://money.sulekha.com/crompton-greaveshttp://money.sulekha.com/zee-entertainment-enterpriseshttp://money.sulekha.com/zee-entertainment-enterpriseshttp://money.sulekha.com/sun-pharmaceutical-industrieshttp://money.sulekha.com/sun-pharmaceutical-industrieshttp://money.sulekha.com/crompton-greaveshttp://money.sulekha.com/crompton-greaveshttp://money.sulekha.com/housing-development-finance-corporationhttp://money.sulekha.com/housing-development-finance-corporationhttp://money.sulekha.com/housing-development-finance-corporationhttp://money.sulekha.com/housing-development-finance-corporationhttp://money.sulekha.com/housing-development-finance-corporationhttp://money.sulekha.com/housing-development-finance-corporationhttp://money.sulekha.com/zee-entertainment-enterpriseshttp://money.sulekha.com/zee-entertainment-enterpriseshttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/exide-industrieshttp://money.sulekha.com/exide-industrieshttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/coromandel-internationalhttp://money.sulekha.com/coromandel-internationalhttp://money.sulekha.com/solar-industries-indiahttp://money.sulekha.com/solar-industries-indiahttp://money.sulekha.com/bioconhttp://money.sulekha.com/bioconhttp://money.sulekha.com/exide-industrieshttp://money.sulekha.com/exide-industrieshttp://money.sulekha.com/solar-industries-indiahttp://money.sulekha.com/solar-industries-indiahttp://money.sulekha.com/solar-industries-indiahttp://money.sulekha.com/solar-industries-indiahttp://money.sulekha.com/ht-mediahttp://money.sulekha.com/ht-mediahttp://money.sulekha.com/ht-mediahttp://money.sulekha.com/ht-mediahttp://money.sulekha.com/ht-mediahttp://money.sulekha.com/ht-mediahttp://money.sulekha.com/solar-industries-indiahttp://money.sulekha.com/solar-industries-indiahttp://money.sulekha.com/exide-industrieshttp://money.sulekha.com/bioconhttp://money.sulekha.com/solar-industries-indiahttp://money.sulekha.com/coromandel-internationalhttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/exide-industrieshttp://money.sulekha.com/bank-of-barodahttp://money.sulekha.com/zee-entertainment-enterpriseshttp://money.sulekha.com/housing-development-finance-corporationhttp://money.sulekha.com/housing-development-finance-corporationhttp://money.sulekha.com/housing-development-finance-corporationhttp://money.sulekha.com/crompton-greaveshttp://money.sulekha.com/sun-pharmaceutical-industrieshttp://money.sulekha.com/zee-entertainment-enterpriseshttp://money.sulekha.com/crompton-greaveshttp://money.sulekha.com/sun-pharmaceutical-industrieshttp://money.sulekha.com/sun-pharmaceutical-industrieshttp://money.sulekha.com/zee-entertainment-enterprises -
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Bharti Airtel 2.55
HT Media 2.53
Biocon
2.43
Biocon 2.34
Coromandel International 2.30
Bharti Airtel 2.26
Nagarjuna Construction Co. 2.23
http://money.sulekha.com/bharti-airtelhttp://money.sulekha.com/bharti-airtelhttp://money.sulekha.com/ht-mediahttp://money.sulekha.com/ht-mediahttp://money.sulekha.com/bioconhttp://money.sulekha.com/bioconhttp://money.sulekha.com/bioconhttp://money.sulekha.com/bioconhttp://money.sulekha.com/coromandel-internationalhttp://money.sulekha.com/coromandel-internationalhttp://money.sulekha.com/bharti-airtelhttp://money.sulekha.com/bharti-airtelhttp://money.sulekha.com/nagarjuna-construction-cohttp://money.sulekha.com/nagarjuna-construction-cohttp://money.sulekha.com/nagarjuna-construction-cohttp://money.sulekha.com/bharti-airtelhttp://money.sulekha.com/coromandel-internationalhttp://money.sulekha.com/bioconhttp://money.sulekha.com/bioconhttp://money.sulekha.com/ht-mediahttp://money.sulekha.com/bharti-airtel -
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HDFC Growth Fund - Growth
Fund manager Srinivas Rao Ravuri
Objective
Aims to generate long term capital appreciation from a
portfolio that is invested predominantly in equity and equity
related instruments.
Assets 851.75 ( 31-May-10)
Fund category EquityDiversified
Fund Family HDFC Mutual
Launch Date 11-Sep-00
Scheme type Open Ended
Scheme option Growth
AddressRamon House, 3Rd Floor, H.T. Parekh Marg, 169, Backbay
Reclamation, Churchgate, Mumbai400020
Phone +91-22-66316333
Fax +91-22-22821144
Email [email protected]
Website www.hdfcfund.com
http://money.sulekha.com/hdfc-growth-fund-growth_mutual-fundmailto:[email protected]:[email protected]://www.hdfcfund.com/http://www.hdfcfund.com/http://www.hdfcfund.com/mailto:[email protected]://money.sulekha.com/hdfc-growth-fund-growth_mutual-fund -
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5.FINDINGS
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FINDINGS
My research is on HDFC GROWTH FUND. From the investors point of
view.
As far as analysis is concerned, we found out that the HDFC Growth Fund
was among the best performers fund. Although all the funds are affected by
the global meltdown, (recession) still HDFC Growth Fund has better
performed comparing to other funds for its systematic and unsystematic risk. It
offers advantages of diversification, market timing, and selectivity. In the
comparison of sample of funds, HDFC Growth fund is found highly
diversified fund and because of high diversification, it has reduced the total
risk of portfolio.
In the last it has given a return of 30.45% ,in last 3 years 14.35% and in last 5
years 24.85%. So it has a good track record.
In SIP Plan it has given 28.64% annual return science inscription.
Further, other funds were found very poor in diversification, market timing,
and selectivity. For the further clarification, we too studied the portfolio ofHDFC Growth fund.
One of the findings that I came across is that generally, a good model of asset
classes is the one that can explain a large portion of the variance of returns on
the assets and there were some stocks in the fund portfolio, which were not
aligned with strategy of the fund portfolio.
The optimal situation involves the selection that proceeds from sensible
assumptions, is carefully and logically constructed, and is broadly consistent
with the data while collecting the stocks for the portfolio. The portfolio was
showing constructive outcome in long time horizon and the results can be
improved by making the minor changes in fund portfolio.
Hence, the portfolio theory teaches us that investment choices are made on the
basis of expected risk and returns and these expectations can be satisfied by
having right mix of assets.
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6.CONCLUSION
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CONCLUSION
Mutual fund has become one of the important sources for investing. It is quite likely
that a more efficient portfolio can be constructed directly from funds. Thus, the two-
step process of choosing an asset allocation based on the information about
benchmark indexes and then choosing funds in each category may be one of the best
realistically attainable approaches. To use this approach to portfolio selection
effectively, investors would benefit from estimates of future asset returns, risks and
correlations, as well as from fund managements disclosure of future asset exposures
and appropriate benchmarks.
It has been a great opportunity for me to get a first experience of Mutual Funds. My
study is to get the feel of how the work is carried out in relation to funds portfolio
aspect. I got an opportunity in relation to the documentation and also the portfolio
analysis that have been carrying out in facilitating the investor and the fund manager.
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7.RECOMMENDATION &
SUGGESTION
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RECOMMENDATION
Considering the above analysis, it can be noted that the growth oriented mutual funds
HDFC Growth Fund have performed better than their benchmark indicators. Other
funds did not perform well even some performed negatively. Though HDFC Growth
Fund have performed better than the benchmark of their systematic risk (volatility)
but with respect to total risk the fund have not outperformed the Market Index.
Growth oriented mutual funds are expected to offer the advantages of Diversification,
Market timing and Selectivity. In the sample HDFC Growth Fund is found to be
diversified fund and because of high diversification, it has reduced total risk of the
portfolio. Whereas, others are low diversified and because of low diversification their
total risk is found to be very high. Further, the fund managers of these underperforming funds are found to be poor in terms of their ability of market timing and
selectivity.
The fund manager of HDFC Growth Fund fund can improve the returns to the
investors by increasing the systematic risk of the portfolio, which in turn can
be done by identifying highly volatile shares. Alternatively, these can take
advantage by diversification, which goes to reduce the risk if the same return
is given to the investor at a reduced risk level, the compensation for risk might
seem adequate.
The fund manager can divide all securities into several asset classes and tries
to construct an efficient portfolio based on expected returns, risk, and
correlations of indexes representing these asset classes. The investment should
be done in the bench mark indexes to get an efficient portfolio in such a way
that no other combination of these indexes would result in a portfolio with a
higher return for a given level of risk.
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SUGGESTION
From Investor point of view:
For the long time horizon HDFC GROWTH Mutual Fund are almost safe and
it was given a good return. But it is totally depend upon the market situation
and fluctuations.
The previous performance may not be sustain in the future, so there is no
guarantee that the same performance will continue.
The Mutual fund are subject to market risk please read the document carefully
before investing.
HDFC GROWTH Fund has performed very well in the past and the risk of
investor is moderate because of good diversification of fund. HDFC Growth
Fund have performed better than the benchmark of their systematic risk
(volatility).
So this is a good fund to invest and to get a good return.
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8. Bibliography
The Reference Book s
Author1. Security Analysis and Portfolio Management (sixth Edition 1995) by
Donald E. Fisher and Ronald J. Jordan. Publication: Pearson education.
2. The Indian Financial System (second edition) by Bharati V. Pathak.
Published by Dorling Kindersley (India) Pvt. Ltd., licensees of Pearson
Education in South Asia.
3. Security Analysis and Portfolio Management by Khan and Jain.
Magazines: Money Outlook (May &June 2009)
Business world (May & June 2009)
News Papers- Economics Times, Business Today.
Websites www.hdfcfund.com
www.amfiindia.com
www.moneycontrol.com
http://www.hdfcfund.com/http://www.hdfcfund.com/http://www.amfiindia.com/http://www.amfiindia.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.amfiindia.com/http://www.hdfcfund.com/ -
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www.sebi.gov.in
www.bseindia.com
www.nseindia.com
www.mutualfundsindia.com
www.valueresearch.com
www.indiainfoline.com
www.in.finance.yahoo.com
www.investing.businessweek.com
www.businessline.com
http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.bseindia.com/http://www.bseindia.com/http://www.nseindia.com/http://www.nseindia.com/http://www.mutualfundsindia.com/http://www.mutualfundsindia.com/http://www.valueresearch.com/http://www.valueresearch.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.in.finance.yahoo.com/http://www.in.finance.yahoo.com/http://www.investing.businessweek.com/http://www.investing.businessweek.com/http://www.businessline.com/http://www.businessline.com/http://www.businessline.com/http://www.investing.businessweek.com/http://www.in.finance.yahoo.com/http://www.indiainfoline.com/http://www.valueresearch.com/http://www.mutualfundsindia.com/http://www.nseindia.com/http://www.bseindia.com/http://www.sebi.gov.in/ -
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