INTRIM

HDFC MUTUAL
HDFC MUTUAL
FUND
FUND REPORT MT
-2

A STUDY OF
FACTORS
AFFECTING
PERSONAL
FINANCIAL
PLANNING WITH
SPECIAL
REFERANCE TO
HDFC MUTUAL
FUND IN PATNA
AJIT KUMAR PANDEY
1/3/2010
HDFC MUTUAL
FUND

A
 THESIS ON
CUSTOMER SURVEY TITLED
“A STUDY OF FACTORS AFFECTING PERSONAL
FINANCIAL PLANNING WITH SPECIAL REFERANCE
TO HDFC MUTUAL FUND IN PATNA”

BY
AJIT Kumar PANDEY
ENROLLMENT NO: - 8NBPA102
COURSE: - 3RD SEM. MBA (2008-
10)
FACULTY GUIDE: - PROF. SRIDHAR
Kumar
DECLARATION
THIS REPORT IS SUBMITTED FOR THE
PARTIAL FULLFILLMENT OF THE
REQUIREMENT OF THE MBA PROGRAM
(THE CLASS OF 2008-10)

– AJIT Kumar PANDEY

TABLE OF
CONTENTS
S.NO TOPIC PAGE NO.
1 TITLE PAGE 02
2 DECLARATION 03
3 ACKNOWLEDGEMENT 05
4 SUMMARY OF PROGRESS 06
5 INTRODUCTION 07
6 INDUSTRY PROFILE 08
7 COMPANY PROFILE 11
8 BODY OF THESIS 15
9 literature/review 18
10 QUESTIONNAIRE 23
11 REFERENCES 26

ACKNOWLEDGEME
NT
It is matter of great privilege for me to be attached with HDFC and do
research, which enhanced my practical knowledge. I do acknowledge
that this research report is outcome of constructive support and
cooperation of many individual.
First of all I wish to pay my deep sense of gratitude to our centre head
MR. SANDEEP DUBEY for providing me an opportunity to undergo
practical training in a reputed organization like HDFC. Secondly I am
thankful to my faculty guide MR. SRIDHAR Kumar for this co-
operation and friendly behavior to bring this project in this present form.
Thirdly, I am highly thankful to all the employee of HDFC, Patna for
providing me a great opportunity of working on my research for a
dynamic and growing organization and allow me to carry out a very
challenging and satisfying project. In this regard I especially thanks to
Mr. ASHUTOSH KUMAR (SALES MANAGER, HDFC MUTUAL
FUND, Patna) for his co-operation and guidance.

At last but not the least, I sincerely thank to my entire batch mates for
providing me a valuable suggestions, guidance and cooperation and
generosity in completing my research work.

SUMMARY OF THE
PROGRESS
This project is an attempt “A Study of Factors Affecting Personal
Financial Planning with Special Reference to HDFC Mutual Fund in
Patna”. It is a comparative analysis of performance of HDFC & its
competitors in financial market of the Patna. The project also tries to go
in the reasons of the current trends and provide valuable suggestions to
HDFC which could help it in retaining its position and gaining his
customer trust to catch a big market share.

In order to complete my Management thesis I have collected data from:

1. Company
2. Competitors
3. Customers
4. Employees
For collecting data I have designed questionnaire for CUSTOMERS
through which I have gathered data and analysis it. Now, I am tabulating
that data according to requirement of management thesis.

Introduction
Survey is the medium or tool which is used to communicate to the
customers about the product and its market potential. Whereas market
potential of the company’s product. Survey is made at the corporate
level to evaluate the performance of product and to analyze the market
condition. Market strategies are recommended as per the interpretation
of primary data got from the survey conducted. This also helps in
promoting sale.
As brand image plays an important role in the sale of any product. So
for a company like HDFC which on regular basis measure the
performance of its sales and after sales to give better service to the
customers and satisfy their growing expectation. It is necessary for a
company to continuously review their performance and other
promotional schemes and constantly monitoring the changes taking
places to face the growing competition.
The study mainly concentrates on the Personal financial planning of
Existing product and measuring the market share of HDFC products and
secondly to know the strength and weakness of HDFC whether
customer is satisfied with the product.
Need for this study arises as surveys play a key role in finding the status
of product in market. It helps in interacting with customer directly;
through which customer could easily give their input. Therefore it
becomes necessary for any firm to know about performance of his
product and the customer satisfaction level. This study was done at
HDFC ltd. Patna.

INDUSTRY
PROFILE
India is also one of the fastest growing markets for mutual funds industry

attracting a host of global players. The combination of increasing number of funds

houses (along with new schemes) and increase in the number of people parking

their savings in mutual funds has resulted in total funds mobilization increasing at

a whooping 126.93 percent during 2009-10 quarter 2nd result to stand at US$ 1.07

trillion as against US$ 484.13 billion compared to 2008-09.

The average assets under management (AUM) of the mutual fund industry for

October 2009 stood at US$ 134.76 billion as against US$ 89.86 billion at the end

of March 2009.

With accelerating investor interest shown in mutual fund segment, the number of

investor folios of the MFs increased to 43.7 million at the end of October 2009,

from 27.9 at the end of march 2009 ( a growth rate of 54 percent). Simultaneously,

there has been an increase in the number of distributors to 1,29,108 (excluding 118

banks) till March 2009 from 72,108 in March 2008.

In the calendar year (2010), the growth momentum of the mutual fund industry

continues. Total fund mobilization has increased by a whooping 84.08 percent to

US$ 221.73 billion during October 2009, compared to US$ 120.45 billion In

April-May 2009. Consequently, average AUM of the mutual fund industry has
increased to US$ 140.04 billion for October 2009, against US$ 90.1 billion in

March 2009.

Continuing the growth, the Indian mutual funds market is estimated to grow at a

CAGR of 18 percent in the next five years, with the country’s mutual funds assets

expected to more than double to US$ 298.73 billion by 2012, according to a report

by US-based financial services research and consulting firm Cerulli Associates.

COMPANY PROFILE
INTRODUCTION
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country. The
corporation has had a series of share issues raising its capital to Rs. 119 Crores.
The gross premium income for the year ending March 31, 2007 stood at Rs. 2,856
Crores and new business premium income at Rs. 1,624 Crores. The company has
covered over 8,77,000 lives year ending March 31, 2007.

HDFC operates through almost 450 locations throughout the country with its
corporate head quarters in Mumbai, India. HDFC also has an International Office
in Dubai, UAE with service associates in Kuwait, Oman and Qatar. HDFC is the
largest housing company in India for the last 27 years.

SNAPSHOT-I
Incorporated in 1977 as the first specialized Mortgage Company in India.
Almost 90% of initial shareholding in the hands of domestic institutes and
retail investors. Current 77% of shares held by foreign institutional
investors.
Besides the core business of mortgage HDFC has evolved into a financial
conglomerate with holdings In:
HDFC Standard Life insurance Company- HDFC holds 78.07 %.
HDFC Asset Management Company – HDFC holds 50.1%
HDFC Bank- HDFC holds 22.25%.
Interline Global (Business Process Outsourcing) – HDFC holds 50%.
HDFC Chubb General Insurance Company – HDFC holds 74%.
SNAPSHOT-II
Loan Approvals Rs. 805 billion.
(Up to Dec 2007) (US $ 18.30 bn.)

Loan Disbursements Rs.669 billion

(Up to Dec. 2007) (US $ 15.20 bn)

Housing Units financed 2.5 million.

Distribution
Offices 181
Outreach Programs 90

KEY PLAYERS
Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive
Chairman of Housing Development Finance Corporation Limited (HDFC
Limited). He joined HDFC Limited in a senior management position in 1978. He
was inducted as a whole-time director of HDFC Limited in 1985 and was
appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of
HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants
(England & Wales).

Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company
since November, 2000. Prior to this, he was the Managing Director of HDFC
Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology
from the Indian Institute of Technology, Bombay and a Masters Degree in
Business Administration from The American University, Washington DC.

GROUP COMPANIES

HDFC Bank: World Class Indian Bank- among the top private banks in India.

HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.

Intel net Global: BPO services for international customers.

CIBIL: Credit Information Bureau India Limited.

HDFC Chubb: Upcoming Private companies in the field of General Insurance.

HDFC Mutual Fund

HDFC reality.com: Helps to search properties in all major cities in India

HDFC securities

This is the group profile of HDFC group now we take up a look at

HDFC Mutual fund but before that have a look upon value chain of

banking sector in India.

BANKING VALUE CHAIN IN INDIA

BANKING VALUE CHAIN IN INDIA

CREDIT BANKS CREDIT TO

DEMAND DEPOSIT GOVERNMENT

HOUSE TIME DEPOSIT COMMERCIAL SECTOR

HOLD CERTI. OF DEPOSIT BANK CREDIT, NON

FOOD PRIMARY DEALER

BANKING SERVICES MARKETING & SALES

INSURANCE SERVICES NEW A/C

TELE BANKING I.T. SUPPORT PUBLIC RELATIONS

E-BANKING ADMINISTRATION OMBUDSPERSON

MOBILE BANKING HUMAN RESOURCE DIRECT SELLING AGENT

INVESTMENT BANKING BRANDING AND ADVT.

WEALTH MGMT SERVICE RBI AND REGULATIONS, CRR DATABASE

CALL MONEY MARKET REPO, R.REPO, SLR, CAN, INTRANET-
INTERNET
SOURCE: WWW.RBI.GOV.IN BANK RATE BRANCH BANKING
HDFC MUTUAL FUND
PROFILE

The housing development finance corporation was the first to receive an ‘in

principle’ approval from the reserve bank of India to set up a bank in the

private sector, as a part of RBI’s liberalization of the Indian economy in

1994 in the name of HDFC bank ltd. with its registered office in Mumbai,

India. HDFC bank commenced its operations as a scheduled commercial

bank in January 1995.

PROMOTER

HDFC is India’s premier housing finance company and enjoys an

impeccable track record in India as well as in international markets. Since

its inception in 1977, the corporation has maintained a consistent and

healthy growth in its operations to remain the market leader in mortgages.

Its outstanding loan portfolio covers well over a million dwelling units.

HDFC has developed significant expertise in retail mortgage loans to

different market segments and also has a large corporate client base for its

housing related credit facilities. With its experience in the financial markets,
a strong market reputation, large shareholder base and unique consumer

franchise, HDFC was ideally positioned to promote a bank in the Indian

environment.

BUSINESS FOCUS

HDFC bank’s mission is to be a world class Indian bank. The objective is to

build sound customer franchisees across distinct businesses so as to be the

preferred provider of banking services for target retail and wholesale

customer segments, and to achieve a healthy growth in profitability,

consistent with banks risk appetite.

AMALGAMATIONS AND MERGERS

In terms of milestones achieved in the banking industry, Times bank Ltd. (a

private sector bank promoted by Bennett, Coleman & co. /times group) was

merged with HDFC bank effective February 26, 2000.

As per the scheme of amalgamation approved by the shareholders of both

banks and the reserve bank of India, shareholders of times bank received 1

share of HDFC bank for every 5.75 shares of times bank.

 On February 2008, the proposed HDFC bank – Centurian bank of Punjab

merger received a nod which resulted into the largest amalgamation in the

banking industry with assets worth Rs. 2 Lakh crore. The share swap ratio

was decided at 1:29. the merger is proposed to be synergistic in the retail

banking business whereas HDFC bank has a strong presence in the

corporate sector.

BODY OF THESIS
PURPOSE OF THE STUDY

A project cum Training is an essential part of MBA Curriculum. This study was
conducted on “A Study of Factors affecting Personal financial planning with
special reference HDFC Mutual fund in Patna”.
The topic has been given by the ICFAI UNIVERSITY, DHERADUN to collect
information about current happening in the organization. It also helps to make
improvements in service and quality of the HDFC product & services, for their
long time existence in the market and earning profit.
Simultaneously, it is also helpful for me to learn about the consumer’s behavior
and their demand for the product and services, especially in financial sector in
Patna.
NEED OF THE STUDY
Need for this study arises as there are many
market players of these products. Therefore it
becomes necessary for any firm to know
about the performance and customer
satisfaction level. This study was done at
HDFC ltd., Patna.
Implementation of the suggestion can help the
company to face the challenges posed by their
competitors and will help increase their reach
by attracting new customers.
SCOPE OF THE STUDY
This study aims to look the market potential

of product through customer survey. Outcome

of this survey will give clear picture as to

where company should focus more in order to

increase the sale of product. Investment is

need of the hour and more and more people

are opting for various Insurance policies.

With various insurance companies in the

market offering various policies, this project

will help in knowing the market for HDFC

mutual fund in particular. This project will

help understand the customer’s preferences for

various FUNDS. The scope includes understanding

the people’s opinion about MUTUAL FUNDS. The

scope of this project also includes understanding the

investment criteria of individuals. Implementation of

the suggestions can help the company to face the

challenges posed by their competitors and will help

increase their reach by attracting new customers.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES
The primary objectives of the study are to
analyze mutual funds as an investment
alternative. This coupled with motive to
know about the fundamentals of all other
investment avenues like equity shares,
bonds, debentures, fixed income
instruments, physical assets, etc. made the
objective expand and become all- inclusive.
To understand the ‘investment psyche’ of
investors, viz. the factors that drive their
investment decisions.
To understand the process of financial
planning of a client.
 To be able to suggest appropriate mutual funds to clients according to
their risk profiles and financial goals.
To conduct a risk-return analysis of mutual funds across all categories.

SECONDRY OBJECTIVES
Based on the outcome of the survey, to suggest areas in which the
company should focus more in order to enhance the sale of product.
To come up with logical and appropriate recommendations based on
the research for prospective investors.
To understand the basics of trade finance and services and retail
foreign exchange products offered by HDFC bank.

GEOGRAPHIC SCOPE

The project area was limited to the geographic limits of PATNA city. In my

research is mainly focus on only those customers who are investing in mutual

funds only the different area where from I gathered the data is boring road,

exhibition road, Patna city, kankarbagh, baily road, and the area of by-pass.

RESEARCH INSTRUMENT USED

Questionnaire, as the research instrument has been used. Questionnaire has been

designed differently for Supervisor and Managerial level.

The questionnaire is designed according to the following points as under-

Satisfaction level of employees

Identifying the Individual

LITERATURE/REVIEW

METHODOLOGY TO BE USED:-
Research methodology is a systematic approach of identifying the problem,
collecting the information, Analyzing the information and providing alternate
solution. For the purpose of gathering data from various dealers and consumers, I
would prefer collection of secondary data with the
help of open and close-ended questionnaires.
1. Defining the problem and research
objective:
The first step for the researcher and the
marketing manager is to define the problem
carefully and agree on the research objective. A
problem well define is half solved for this it is
necessary to fined the customer being priority,
customers want and what the company offer need
to be annualize, so as to price deliver to the
customer what he want. our major objective was
to study the market survey and sales promotional
of HDFC MUTUAL FUNDDENTIAL of Patna and
sub objective was to assists the effectiveness of
existing market input for the company.

2. Developing the research plan:

The second stage of marketing research calls for
developing the most effective plan and design of
research. The research plan includes decision on
data sources, research approach, research
instrument, sampling plan, contact method.
COLLECTION OF DATA
This is the most important step of the research. The whole process depends on this

step. Hence, it is very necessary to collect good, resourceful and quality data. Data

are collected from various sources. It is of two types:-

TWO TYPE OF DATA.

1. PRIMERY DATA.
2. SECONDARY DATA.

1.PRIMERY DATA:- Primary research uses various approaches

like focus groups surveys fields tells and interviewing to collect first hand
data, primary data is collected directly from respondents using data collection
methods like survey interviews, questionnaire, measurements, direct
observation or tabulation.

2.SECONDARY DATA:- Secondary data is the data that already

exists which has been collected by some other person or organization for
their use, and is generally made available to other researcher free or at a
concessional rate. Secondary data include website, trade associations, journals,
books etc. secondary data may not always answer that specific question of a
research.

ANALYSIS OF DATA:- After collection of data from various

sources, all the data are analyzed and short-listed according to the nature, area and

specialization.

APPROACH
The approach should be proper, well organized and planned. The approach

varies with the type of people to whom we are going to ask your question.

As a management trainee, we have to look for the prospective customers through

application of various tools. Such as:-

Personal Approach/Cold Convince

REPORT
Based upon the analysis and data

preparation of final report.

OVERVIEW OF THE PRIMARY

RESEARCH
RESEARCH PROBLEM
To study the investment psyche of investors and to scrutinize the factors which
influence their investment choices?
TYPE OF RESEARCH
The type of research is exploratory as it aims to form hypotheses regarding factors
that influence the investment choices of people.
SAMPLING DESIGN
The sample universe is the city of Patna in Bihar. Sampling unit is an ‘individual
investor. Size of the sample is 50.
TYPE OF SAMPLE
The sample is a Non-probabilistic sample and a convenient sample. The clients
handled by the industry guide were surveyed hence the researcher could not have
the choice of taking a systematic sample.
PRIMARY DATA COLLECTION TOOL
A questionnaire has been used to collect primary data from clients.
IN-DEPTH INTERVIEW
In-depth interview of two investment advisors were taken in order to explore the
process of financial planning of clients.
PROCESSING AND ANALYSIS OF DATA
For the analyzing the collected data, SPSS has been used. Statistics used in the
analysis includes tools like frequency distributions, co-relation, chi-square test,
one way ANOVA, variance ratio (F Test), factor analysis and Discriminant
analysis.
TESTING OF HYPOTHESIS
Certain hypothesis has been framed by the researcher regarding variables that
influence the investment choices of people. The same have been tested in the
analysis using the above mentioned tools and techniques.
RESEARCH
PROCESS
 QUESTIONNAIRE
A SURVEY ON HDFC PRODUCT
DEAR SIR/MADAM,
I am a student of ICFAI national college, Patna. As a part of the
requirement for my post graduate program in management i am required
to do a research based thesis. Kindly, spend a few minutes of your
valuable time and fill in this questionnaire.
NAME OF
RESPONDENT………………………………………………
ADDRESS………………………………………………………………..
CONTACT
NO…………………………………………………………...
Age group
18-25( )
25-35( )
35-60( )
Above 60( )
Source of income
Salary ( )
Business/profession ( )
Pension ( )
Rent from properties ( )
When do you plan to retire?
Next 5 years ( )
5- 10 years ( )
10-20 years ( )
More than 20 years ( )
Your yearly income
Less than 1 lakhs ( )
1lakh-2.5 lakhs ( )
2.5lakhs-5lakhs ( )
Above 5 Lakh ( )
Percentage of your income do you invest (yearly)?
…………………………
Purposes of Investment?

Growth of money ( ) Education ( )

Marriage ( ) Adversity ( )
Retirement ( )
Medical reasons ( ) Dependents Upon you?

None ( )
1-2 ( )
3-5( )
Above 5( )
Your knowledge about financial product.
Low ( )
medium ( )
high ( )
Where do you invested so far?

Bank FD ( ) Property ( ) Debentures of

ULIPs ( ) Gold ( ) companies ( )
Insurance ( ) Bonds ( ) Postal savings ( )
Kisan Vikas Patra
Mutual Funds ( ) Company deposits
( )
Shares ( ) ( )
National Savings
PPF ( ) certificates ( )

What level of risk are you willing to take on your investments

considering the fact that ‘Higher the Risk, Higher the Return’?
I want to protect my capital ( )
I can take a small degree of risk on my investments ( )
I accept the fact that the value of my investments may reduce ( )
I can take risk on my investments ( )
Investment period
Less than 6 months ( ) 6-12 months ( ) 1-3 year ( ) 3-7 year
()
More than 7 year ( )
Do you stay invested when the market is fluctuating?
I sell my investments when market fluctuates ( )
I don’t react on small fluctuation, but Sell it on big fluctuation ( )
I keep my investments as they are ( )
Do you need your investments for sudden expenses?
Not at all ( )
I may require these funds ( )
I will definitely need these funds in emergencies ( )

REFERENCES
Persons
Asutosh Kumar
Sridhar Kumar
Ashok Kumar
Nilesh Kumar
Kundan Kumar
S.K. Sanjeev
Websites
www.hdfc.co.in
www.bseindia.com
www.amfiindia.com
www.moneycontrol.com
Magazines
Portfolio organizer – ICFAI Press
Business World
Business Today
Money Mantra
Newspapers:
Times of India
Business line
Economic Times
Electronic Media
CNBC Awaaz
Zee Business
Business live