SYMBIOSIS CENTRE FOR

DISTANCE LEARNING
FINANCIAL INCLUSION IN INDIA TOP THREE
BANKS OF INDIA
For partial fulfillment of the requirement for the degree of

POST GRADUATE
DIPLOMA IN
BANKING AND FINANCE
SESSION:2013-15
SUBMITTED BY:
Name: SURINDER KAUR
Registration No. -201117826
Course: P.G.D.M.-(IV-Sem.)
Centre city: Bareilly

SYMBIOSIS CENTRE FOR

DISTANCE LEARNING
1

Certificate
This is to certify that Mr SURINDER KAUR a student of PGDM IV Semester has
completed his/her Research Project Report titled COMPARETIVE STUDY OF
EQUITY DIVERCIFICATION ICICI MUTUAL FUND WITH HDFC MUTUAL
FUND assigned by MBA Department under my supervision.
It is further certified that she has personally prepared this report that is the result of
her personal survey / observation. It is of the standard expected to PGDM student
and hence recommended for evaluation.

DECLARATION
This is to be declare that I SURINDER KAUR student of PGDM in SYMBIOSIS
CENTRE FOR DISTANCE LEARNING have given original data and information to
best of my knowledge in the report entitle comparative study of equity
diversification ICICI mutual fund with HDFC mutual fund
I further state that no part of this information has been used for any assignment but for
Partial fulfillment of the requirements towards the completion of the above mentioned
Course.

SURINDER KAUR

AKNOWLADGEMENT

If words are considered as a symbol of approval and

taken of appreciation then let the words play the
heralding role expressing my gratitude.
First of all I thank to my Gracie god who blessed me with
all kind of facilities that had been provided to me for
completion of my report.
Im also grateful to my teacher for guiding me to learn
and helped me on project on

COMPARITIVE STUDY OF

EQUITY DIVERSIFICATION ICICI MUTUAL FUND WITH HDFC

MUTUAL FUND.

My endless appreciation goes to my all respected faculty

who has stood by my side and give me moral support
whenever I was low and boosted my will power.

CONTENT
CONTENTS

PAGE NUMBERS

Executive summary

6 to 7

Chapter.1

Introduction of topic

8 to 10

Chapter.2

Literature Review

11 to 14

Chapter.3

Research Design

15 to 23

Chapter.4

Data analysis & interpretation

24 to 47

Chapter.5

Findings & conclusions

48 to 49

Chapter 6

Summary &conclusion

50

Annexure 1

Bibliography/References

51 to 52

Annexure 2

Questionnaire

53to59

EXCICUTIVE SUMMRY

Even though the first mutual fund in the country is more than40 yrs old, the mutual
fund industry is still nascent one. Most of the mutual funds are about 10 years old. As
percentages of the savings of the household sector; they manage only about3%. This
shows, however, a great potential that the industry has. This slow growth by the mutual
funds is a surprising one when one collects that, just over a decade back, the industry in
one year, was managing as high as 8-9% of financial savings of the household sector.
Also during the last 15 years, interest rates on safe banking instruments have been
coming down. The number of mutual funds has grown but their penetration in household
sector has not increased commensurately. This calls for an explanation on further
research. Unfortunately the area of mutual funds has been a highly under researched one.
The relative yields of long term instruments, their riskiness, and comparative
performance etc are areas of research where not enough attention has been paid by the
researchers. The reason may be that industry is an ascent one and a decade is not
sufficiently long period for drawing meaningful conclusions. The period chosen for this
study is when public mutual funds have already been set up and private sector funds
entered and global mutual funds are just entering. The external environments are common
to both. The public sector mutual funds have the legacy and performance and advantage
of distribution network, but now they are facing the adverse market situation. The private
sector mutual funds entered perhaps at a wrong time but have a freedom to recruit talent

at the market price and started with the best available talent in the financial sector. This
set up allowed good competitive environments for fund managers. There is a good reason
to deviate from the long term study of other countries because the returns on the equity
investment outperform returns on the risk free instruments. Only a good research can help
us to know whether this is also an appropriate time for India

CHAPTER- 1
7

INTRODUCTION OF THE
TOPIC
Mutual Funds have become a widely popular and effective way for investors to
Participate in financial markets in an easy, low-cost fashion, while muting risk
Characteristics by spreading the investment across different types of securities, also
known as diversification. It can play a central role in an individuals Investment strategy.
They offer the potential for capital growth and income through investment performance,
dividends and distributions under the guidance of a portfolio manager who makes
investment decisions on behalf of mutual fund Unit holders. Over the past decade, mutual
funds have increasingly become the Investors vehicle of choice for long-term
investment. It becomes pertinent to study the performance of the mutual fund. The
relation between risk-return determines the performance of a mutual fund scheme. As risk
is commensurate with return, therefore, providing maximum return on the investment
made within the acceptable associated risk level helps in segregating the better
performers from The laggards. Many asset management companies are working in India,
so it is Necessary to study the performance of it which may be useful for the investors to
select the right mutual fund. A Mutual Fund is a trust that pools the savings of a number
of investors who share a common financial goal. Anybody with an investible surplus of
as little as a few hundred rupees can invest Mutual Funds. These investors buy units of a
particular Mutual Fund scheme that has defined investment objective and strategy. The
money thus collected is then invested by the fund manager in different types of

Securities. These could range from shares to debentures to money market Instruments,
depending upon the scheme have stated objectives. The income earned through these
investments and the capital appreciation realized by the scheme is shared by its unit in
proportion to the number of units owned by them. Thus 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 relatively low-cost

OBJECTIVE

To give a brief idea about the benefits available from mutual fund investment.

To give an idea of the type of schemes available.

To discuss about the market trends of mutual fund investment.

To study some of the mutual fund schemes.

To study some of the mutual fund companies.

Observe the some management process of mutual funds.

Explore the recent developments in the mutual fund in India.

To give an idea about the regulation of mutual fund.

To evaluate and compare the performance of equity diversified mutual fund

schemes of selected companies .

To compare the performance of equity diversified mutual fund schemes of selected

companies vis--vis the market.

SCOPE
9

The research work attempt to evaluate the performance of mutual fund Industry in India
under the regulated environment after the introduction Of the icici and reliance mutual
fund regulations 1996 enforcing Uniformity in rules and regulations. Performance
evaluation of mutualFund in this study is confined to three aspects namely, financial
investing public and regulatory body. In financial aspects, the Performance of the mutual
fund is evaluated from return incurred bythem and their comparison with the stock
market index. Investment Performance of the mutual fund is evaluated through a survey
conducted on the mutual fund investors considering their attitude, satisfaction and their
aspects, finally, the impact of regulatory measures taken from time to time by by
regulatory authority on the performance of the mutual fund. For evaluating the financial
performance of selected mutual fund, the period of the study is taken from 2002-2003 to
2013-2014etc. April 2002, march 2014.

CHAPTER- 2
LITLATURE REVIEW
10

Sapir & Narayan(2003) examines the performanceof Indian mutual fund in a bear market
through relative performance index, risk-return analysis, Tenors ratio, Sharp's ratio,
Sharp's measure, Jensen's measure, and Fames measure with a sample of 269 open
ended schemes (out of total schemes of 433). The results of performance measures
suggest that most of the mutual fund schemes in the sample of 58 were able to satisfy
investor's expectations by giving excess returns over expected returns based on both
premium for systematic risk and total risk. Rao D. N (2006) studied the financial
performance of select open-ended equity mutual fund schemes for the period 1st April
2005 31st March 2006 pertaining to the two dominant investment styles and tested the
hypothesis whether the differences in performance are statistically significant. The
analysis indicated that growth plans have generated higher returns than that of dividend
plans but at a higher risk studied classified the 419 open-ended equity mutual fund
schemes intosix distinct investment styles. the empirically testing on the basis of fund
manager performance and analyzing data at the fund-manager and fund-investor levels.
The study revealed that the performance is affected by the saving and investment habits
of the people and at the second side the confidence and loyalty of the fund Manager and
rewards- affects the performance of the MF industry in India. Mehta Sushilkumar (2010)
analyze the performance of mutual fund schemes of icici and reliance and found out that
HDFC schemes have performed better then the ICICI in the year 2007-2008. Selvam et.al
(2011) studied the risk and return relationship of Indian mutual fund schemes. The study
found out that out of thirty five sample schemes, eleven showed significant tvalues and
all other twenty four sample schemes did not prove significant relationship between the
11

risk and return. According to t-alpha values, majority (thirty two) of the sample schemes'
returns were not significantly different from their market returns and very few number of
Sample schemes' returns were significantly different from their market.The topic of
project was mutual funds A case study and survey. After the research works that
mutual fund industry is enlarging its size inIndia investors are willing pour money in
mutual funds. Despite some Temporary registrants, other economic modes are in
favorable mode. Thus we need proper management of advisory services more schemes
financial advisor and institution to cater the market.Industry need to revise its business
strategy. Investors perception is not Prioritized yet instead of completing target, advisors
working under Institutions should consider the requirements of the investors. We need
Changing pattern of selling mutual funds.The topic was a study of preferences of
investors for investment in mutual funds for the reliance mutual funds. that most of the
investors dont invest in Sbimutual fund due to non awareness. And he adds that most
of the investors of Patna had invested in reliance or icici mutual funds and ICICI mutual
funds also has good brand position among them. And icici mf places after ICICI mutual
fund according to respondents. The most portfolio are equity second most is balance and
least prefer portfolio was debts portfolio. Most of the investors doesnt want to invest in
sectored fund. And he observed thatmany people havethe fear of mutual fund. They need
information brand place and important role and relaince mutual fund ICICI mf etc.
arewell non brand so they are doing well.Review of literature is a brief description about
mutual funds research work conducted in India as well as in abroad. Some of these

12

studies have been reviewed in the following paragraphs in order to establish the research
gap and need for the present study. Treynor (1965) developed a methodology for
evaluating mutual fund performance that is popularly referred to as reward to volatility
ratio. Sharpe (1966) carried out a well acknowledged and widely quoted work on
performance evaluation. He also developed a composite measure of performance
evaluation that considers both return & risk. Jensens (1968) classic studies developed an
absolute measure of performance based upon the Capital Asset Pricing Model. The excess
fund returns were regressed upon the excess market returns to estimate the characteristics
line of the regression model. J. Williamson (1972) made an effort on the study of
measuring and forecasting of mutual funds performance and test the hypothesis that a
funds performance affected by net new money. There is a popular belief that the
availability of net new money tends to increase performance. Williamson, however, found
no correlation. He also sought to determine if net new money was related to past
performance with the result that no correlation was found. Kun and Jen (1978) estimated
the systematic risk and performance of 49 mutual funds over the period 1960-71 by
utilizing monthly price data. The result indicated that a very substantial fraction of mutual
funds had two level of systematic risk during each of three sub periods. Kane and Marks
(1983) developed conditions under which Sharpe (1966) measure would correctly and
completely capture market timing ability of fund managers. Lee and Rahman (1989)
examined market timing and selectivity performance of selected mutual funds. They
concluded that at the individual level, there was some evidence of superior forecasting
ability on the part of fund manager. Grinblatt and Titman (1994) reported that mutual
13

fund performance evaluation measures generally yielded similar inferences with the same
benchmark. Jayadev (1998) conducted a study on the performance evaluation of portfolio
managers. He examined the performance of 62 mutual fund schemes using monthly NAV
data for the period of April 1987 to March 1995. The study showed that the Indian mutual
funds were not properly diversified. Singh and Chander (2001) appraised the status of
Indian mutual fund in pre-liberalisation and Asia Pacific Journal of Marketing &
Management Mohanan (2006) found that Indian mutual fund industry was one of the
fastest growing sectors in the Indian capital and financial markets. Mutual funds assets
under management grew by 96 percent between the end of 1997 and June 2003 and as a
result it rose from 8 percent of GDP to 15 percent. Agrawal (2007) examined that since
the development of the Indian capital Market and deregulations of the economy in 1992 it
has came a long way with lots of ups anddowns. The study revealed that the performance
is affected by saving and investment habits of the people; at the second side the
confidence and loyalty of the fund manager and rewards affects the performance of the
mutual fund industry in India. Parihar et al. (2009) revealed that mutual funds
arefinancial intermediaries concerned with mobilizing savings of those who have surplus
and the canalization of these savings in those avenues where there is a demand for funds.

CHAPTER 3
RESEARCH
DESIGEN
14

Research Design
A method and system a statical analysis based on past history to facilitate the
investment process. respective fund using a principal factor such as cumulative growth
and stability. For tracking investment, upper and lower control limits are
defined according to standard deviation of average total return over predetermine period
of time to improve chances of the investors achieving a profit as well as a near optimum
performance. .This research methodology helps us to give information about the
opportunities of mutual funds investment. It will help to study the market of mutual funds
better.

Sample Design
All mutual fund companies and there return on investment.
A sample design is a definite plan for obtaining a sample from a given
population. It refers to the technique or method the researcher would
adopt in selecting items for the sample.

Tools of data collection

There are many methods of data collection which can be used according to nature and
type of research. I will use following data for the research purpose My research only the
basis of secondary data.

15

Secondary data
Articles
Factsheet
Management generals
Annual report
Research papers
Internet
Companies product voucher
News papers

Tools for data Analysis

1.Return on investment
2. Graph
3. Chart

Major Finding
After valuation of the data I am finding out some positive and some
negative result for Indian market mutual funds opportunities.

Positive results:
1. Professional Management The basic advantage of funds is that, they are professional managed, by well qualified
professional. Investors purchase funds because they do not have the time or the expertise

16

to manage their own portfolio. A mutual fund is considered to be relatively less expensive
way to make and monitor their investments.

2. Diversification Purchasing units in a mutual fund instead of buying individual stocks or bonds, the
investors risk is spread out and minimized up to certain extent. The ideabehind
diversification is to invest in a large number of assets so that a loss in any
particular investment is minimized by gains in others.

3. Economies of Scale Mutual fund buy and sell large amounts of securities at a time, thus help to reducing
transaction costs, and help to bring down the average cost of the unit for their
investors.

4. Liquidity Just like an individual stock, mutual fund also allows investors to liquidate their
holdings as and when they want.

5. Simplicity Investments in mutual fund are considered to be easy, compare to other available
instruments in the market, and the minimum investment is small. Most AMC also
have automatic purchase plans whereby as little as Rs. 2000, where SIP start with
just Rs.50 per month basis.

17

STATISCAL TOOLS:
For the purpose of analysis, Mean and percentage methods are used for the calculation
and the result was interpreted. This test was used to minimize the error of the data
collected.

STATISTICAL TOOLS USED:

Sample tools are used for analyze purpose, they are follows:

Cross tab method

Chi square test

Phi and Cramer V test

Null hypothesis (HO) states: the two attributes are independent of each other.
Alternative hypothesis (HI) states: the two attributes are dependent of each
other.

QUESTIONNARE
1. What kind of investments you prefer most? Pl tick (). All applicable
a. Saving account

b. Fixed deposits

c. Insurance

d. Mutual Fund

e. Post Office-NSC, etc

f. Shares/Debentures

g. Gold/ Silver

h. Real Estate

18

I. PPF

j. PF

2. While investing your money, which factor you prefer most? Any one
Liquidity

Low Risk

High Return

Company reputation

3. Have you ever invested your money in mutual fund?

Yes

No

If yes,
a) Where do you find yourself as a mutual fund investor?
Totally ignorant

[ ]

Partial knowledge of mutual funds

[ ]

Aware only of any specific scheme in which you invested [ ]

Fully aware

[ ]

b) In which kind of mutual you would like to invest?

Public

c)

[ ]

Private [ ]

how do you come to know about Mutual Fund?

a. Advertisement

b. Peer Group

c. Banks

d. Financial Advisors

19

d) Which mutual fund scheme have you used?

Open-ended
Liquid fund
Growth fund
Long-Cap

Close-ended
Mid- Cap
Regular Income fund
Sector fund

a) If not invested in Mutual Fund then why?

Not aware of MF

Higher risk

Not any specific reason

4. which feature of the mutual funds allure you most?

Diversification

[ ]

Better return and safety

[ ]

Reduction in risk and transaction cost

[ ]

Regular Income

[ ]

Tax benefit

[ ]

5. In which Mutual Fund you have invested? Please tick (). All applicable.
a. SBIMF
b. UTI
c. HDFC
d. Reliance
e. ICICI prudential funds
f. JM mutual fund
g. Other. Specify

20

6. When you invest in Mutual Funds which mode of investment will you prefer?
a. One Time Investment

b. Systematic Investment Plan (SIP)

7. Where from you purchase mutual funds?

Directly from the AMCs [ ]
Brokers only

[ ]

Brokers/ sub-brokers

[ ]

Other sources

[ ]

8. Which AMC will you prefer to invest?

Assets Management Co.
a. SBIMF
b. UTI
c. Reliance
d. HDFC
e. Kotak
f. ICICI
g. JM finance

9. Which sector are you investing in mutual fund sector?

i.
ii.
iii.

General 1st
Oil and petroleum
Gold fund

iv.

Diversified equity fund

v.

Power sector

vi.

Debt fund

vii.

Banking fund

21

viii.

Real estate fund

General 1st

ix.

10. How would you like to receive the returns every year?
a. Dividend payout

b. Dividend re-investment

c. Growth in NAV

11. Personal Details:

(a). Name:(b). Add: -

Contact No:-

(c). Age:(d). Qualification:Graduation/PG

Under Graduate

Others

(e). Occupation. Pl tick ()

Govt. Sec

Pvt. Sec

Business

Agriculture

Others

(g). What is your monthly family income approximately? Pl tick ().

Up to
Rs.10,000

Rs. 10,001 to
15000

Rs. 15,001 to
20,000

Rs. 20,001 to
30,000

Rs. 30,001 and

above

22

CHAPTER- 4
DATAANALYSIS AND INTERPRETATION
1. Do you invest in mutual fund?

YES

100

NO

23

120
100

100
80
60

YES

NO

40
20
0

Interpretation:All the candidates who are asked to fill the questionnaire have invested
in mutual fund.

2. With which company do you have invested in mutual funds?

HDFC

65

ICICI

35

Reliance

SBI

LIC

Kotak Mahindra

Others

24

70

65

60
50
40

HDFC

35

ICICI Reliance

SBI LIC

Kotak Mahindra Others

30
20
10
0

Interpretation:
Out of 100 candidates up to 65have invested in mutual fund with HDFC
& 35 have invested with ICICI. There is no investor who have invested
in mutual fund with any another company.

VAR00001

Observed N

Expected N

Residual

HDFC

65

50.0

15.0

ICICI

35

50.0

-15.0

Total

100

25

Test Statistics
VAR00001
Chi-Square

9.000a

df

Asymp. Sig.

.003

a. 0 cells (.0%) have expected frequencies less than 5.

The minimum expected cell frequency is 50.0.

3. What is your age?

.
8
15-25
25-35

12

35-45

60

More than 45

20

26

60
60
50
40
30

15-25

25-35

35-45

More than 45

20

20

12
8

10
0

Interpretation:
60 investors are of age between 35-45. 20 are of age more than 45. 12
are of between of 25-35. 8 are of 15-25. This data shows that many
investors are of middle age & there are less investors of young age in
mutual fund.

27

One-Sample Statistics
One-Sample Test
Test Value = 0
t

N
Mean
Std. Deviation
Std. Error Mean
Sig. (2-tailed) Mean Difference 95% Confidence Interval of the

df

Difference

VAR00001

100

2.9200

.80000

.08000

Lower
VAR00001

36.500

99

.000

2.92000

2.7613

Upper
3.0787

4. What is your income? (Yearly based)

1 lakh

2-4 lakh

10

4-5 lakh

20

More than 5

70

28

70
70
60
50
40 1 lakh

2-4 lakh

30

4-5 lakh

More than 5

20

20

10

10
0

Interpretation:

Up to 70 investors have income more than 5 lakh. 20 have between 4-5 lakh.10
investors have income between 2-4 lakh & there is no investor who have income up
to 1akh.

29

VAR00001
Observed N
1 lakh

Expected N

Residual

25.0

-17.0

2-4 lakh

12

25.0

-13.0

4-5 lakh

60

25.0

35.0

more than 5

20

25.0

-5.0

Total

100

Test Statistics
VAR00001
Chi-Square

68.320a

df
Asymp. Sig.

3
.000

a. 0 cells (.0%) have expected frequencies less than 5.

The minimum expected cell frequency is 25.0.

30

5. From where you come to know about this companys mutual fund
schemes?

Family & relatives

35

Friends & peers

40

Company employee

15

Others

10

40
40

35

35
Family & relatives
30

Friends & peers Company employee Others

25
20
15

15
10

10
5
0

Interpretation:
31

Many investors (up to 40) have been come to know about the company to be invested by
their friends & peers.35 have been known by their family & relatives .15have been come
to know by company employees & 10 by others. This means many have come to know by
their friends & peers.

VAR00001
Observed N

Expected N

Residual

Family & relatives

35

25.0

10.0

friends & peers

40

25.0

15.0

Company employee

15

25.0

-10.0

Others

10

25.0

-15.0

Total

100

VAR00001
Observed N

Expected N

Residual

Family & relatives

35

25.0

10.0

friends & peers

40

25.0

15.0

Company employee

15

25.0

-10.0

Others

10

25.0

-15.0

Total

100

32

33

6. What is the time duration of your investment?

0-1 year

15

1-2 year

35

2-4year

30

more than 4

20

35
35

30

30
25
20 0-1 year 15

20
1-2 year

2-4year

more than 4

15
10
5
0

34

Interpretation:
15 investors have time of investment less than one year. 20 have time duration of their
investment between of 1-2 year. 30 have between 2-4 year & 35 have more than 4 years.
So, we can say that 35 investors have more experience than others.

VAR00001
Observed N

Expected N

Residual

0-1 year

15

25.0

-10.0

1-2 year

35

25.0

10.0

2-4 year

30

25.0

5.0

20
Test Statistics

25.0

-5.0

more than 4
Total

100
VAR00001
Chi-Square
df
Asymp. Sig.

10.000a
3
.019

a. 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 25.0.

35

36

7. Are you satisfied by service of the companys employees / peoples

behavior?

Highly satisfied

15

Satisfied

35

Neutral

30

Dissatisfied

15

Highly Dissatisfied

37

35
35

30

30
25

Highly satisfied

20

Satisfied

15

Neutral

Dissatisfied

15

15
10 Highly Dissatisfied

5
0
Response

Interpretation:
Out of 100 investors 15 are highly satisfied. 35 are satisfied. 30 are neutral towards
employee behavior of a company. 15 are dissatisfied. 5 are highly dissatisfied. We say
that many people are satisfied by employee behavior.

VAR00002
Observed N

Expected N

Residual

highly satisfied

15

20.0

-5.0

satisfied

35

20.0

15.0

neutral

30

20.0

10.0

dissatisfied

15

20.0

-5.0

20.0

-15.0

highly dissatisfied
Total

100

38

8. What is your risk profile?

Innovator

20

Moderate

65

Risk adverse

15

65

70
60
50
40
30

20
15

20
10
0
Innovator

Moderate

Risk adverse

Interpretation:
20% investors are innovator means they like to take risk for more returns. 15% are
moderate towards risk means they are indifferent towards risk. 65% are risk adverse
means they mainly try to avoid risk.

39

VAR00002

Observed N

Expected N

Residual

innovator

20

33.3

-13.3

moderate

65

33.3

31.7

risk adverse

15

33.3

-18.3

Total

100
Test Statistics
VAR00002
45.500a

Chi-Square
df

Asymp. Sig.

.000

a. 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 33.3.

9. What you feel about the company norms, documentation & formalities?

Highly Satisfied

15

Satisfied

25

Neutral

40

Dissatisfied

15

Highly
dissatisfied

40

5%

Highly Satisfied

15%

15%
Satisfied
Neutral
25%
Dissatisfied
40%

Highly
Dissatisfied

Interpretation:
15% investors are highly satisfied by companys documentation policy
(filling up the forms etc.). 25% are satisfied, 40% never cares about it
or are moderate towards it , 15% are dissatisfied by it & 5% are highly
dissatisfied.

41

VAR00002
Observed N

Expected N

Residual

highly satisfied

15

20.0

-5.0

satisfied

25

20.0

5.0

neutral

40

20.0

20.0

dissatisfied

15

20.0

-5.0

20.0

-15.0

highly dissatisfied
Total

100
Test Statistics
VAR00002

Chi-Square

35.000a

df
Asymp. Sig.

4
.000

a. 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 20.0.

10. What you say which provides better returns?

42

HDFC

68

ICICI

32

68
70
60
50
32

HDFC

40

ICICI

30
20
10
0

Interpretation:

According to collected data 68 investors thinks that HDFC provides better returns where
as 32 to think that ICICI provides better returns.
VAR00001
Observed N

Expected N

Residual

HDFC

68

50.0

18.0

ICICI

32

50.0

-18.0

Total

100

43

Test Statistics
VAR00001
12.960a

Chi-Square
df

Asymp. Sig.

.000

a. 0 cells (.0%) have expected frequencies less than 5.

The minimum expected cell frequency is 50.0.

11. Would you like to exchange your investment with one another between
HDFC & ICICI?

Yes
No

15
85

44

85
90
80
70
60
50

Yes

No

40
30

15

20
10
0

Interpretation:
15 investors said that they would like to change their investment with each another
between HDFC & ICICI. But 85 investors say that they are ok with their companies and
they wouldnt like to exchange their investment.

45

VAR00001

Observed N
Yes

Expected N
15

No

85
Test Statistics

Total

Residual

50.0

-35.0

50.0

35.0

100
VAR00001
Chi-Square

49.000a

df
Asymp. Sig.

1
.000

a. 0 cells (.0%) have expected frequencies less

than 5. The minimum expected cell frequency is
50.0.

46

47

CHAPTER-5
FINDINGS
In my research I have founded following things:

Investors have more faith HDFCs mutual fund.

As the age increases investors are much satisfied, see more risk & become
more risk adverse.

Old people &Widows prefer lower risk.

Investors are not highly satisfied by company rules & employee behavior.

Investors think that HDFC provides better returns than ICICI.

48

CONCLUSION
To conclude we can say that mutual fund is a very much profitable
tool for investment because of its low cost of acquiring fund, tax
benefit, and diversification of profits & reduction of risk. Many
investors who have invested in mutual fund have invested with
HDFC and them also thinks that it provides better returns than
ICICI .There is also an affect of age on mutual fund investors like;
old people & widows want regular returns than capital appreciation.
Companies can adopt new techniques to attract more & more
investors. In my study I was suppose to do comparative analyses the
mutual fund of HDFC &ICICI and I had found that people consider
HDFC better than ICICI. But ICICI have also respondents and it can
increase its investors by improving itself in some terms.

To conclude we can say mutual fund is a best investment vehicle for old &
widow, as well as to those who want regular returns on their investment.

Mutual fund is also better and preferable for those who want their capital
appreciation.

Both the companies are doing considerable achievements in mutual fund industry.

There are also so many competitors involved those affects on both companies.

49

RECOMMENDATION
In my study I have found some limitations. For that I can suggest both
companies following suggestions or areas of improvement:

ICICI bank should try to provide better returns to its investors as compare to
HDFC.

Both companies should try to invest in better securities for better profits.

Both companies should try to satisfy their customer by better customer service
or by improving customer relationship management.

Companies should try to make people initiative towards risk.

Investors should be made fully aware of the concept of mutual fund & all the
terms and conditions.

It should more emphasize in advertising, as it is the most

Powerful tool to position ant brand in the mindsets of customers.

50

REFERENCES
[1] Agrawal, D. (2006). Measuring Performance of Indian Mutual Funds. Prabandhan ,
179-185.
[2] Guha, S. (2008). Performance of Indian Equity Mutual Funds vis-a-vis their Style
Benchmarks. The
ICFAI Journal of Applied Finance, 49-81.
[3] Madhumathi, S. P. (2005). Characteristics & performance evaluation of selected
Mutual Funds in India.
9th Indian Institute of Capital Market Conference.
[4] Michael, C. J. (1967). The Performance of Mutual Funds in the period 1945-1964.
Journal of Finance , 389-416.
[5] Sharpe, W. (1966). Mutual Fund Performance. The Journal of Business , 119.
[6] Treynor, J. (1965). How to Rate Management of Investment Funds? Harvard Business
Review , 63-75.
[7] Sapar, Narayan Rao and Madava, Ravindran, Performance Evaluation of Indian
Mutual Funds. Available
at SSRN: http://ssrn.com/abstract=433100 or http://dx.doi.org/10.2139/ssrn.433100
[8] Rao, D. N., Investment Styles and Performance of Equity Mutual Funds in India
(August 6, 2006).
Available
at
SSRN:
http://dx.doi.org/10.2139/ssrn.922595

http://ssrn.com/abstract=922595

or

[9] Selvam, Murugesan and Palanisamy, Bhuvaneswari, Analysis of Risk and Return
Relationship of Indian
Equity (Dividend) Mutual Fund
http://ssrn.com/abstract=1862214

Schemes

(2011).

Available

at

SSRN:

51

[10] Agrawa, D. (2009). A Comparative Study of Equity Based Mutual Fund of Reliance
and HDFC.
Prabandhan , 145-154.
[11] http://www.amfiindia.com
[12] http://www.bseindia.com
[13] http://www.rbi.org.in
[14] http://www.mutualfundsindia.com

52

QUESTIONNARE
1. What kind of investments you prefer most? Pl tick (). All applicable
a. Saving account

b. Fixed deposits

c. Insurance

d. Mutual Fund

e. Post Office-NSC, etc

f. Shares/Debentures

g. Gold/ Silver

h. Real Estate

I. PPF

j. PF

2. While investing your money, which factor you prefer most? Any one
Liquidity

Low Risk

High Return

Company reputation

3. Have you ever invested your money in mutual fund?

Yes

No

If yes,
c) Where do you find yourself as a mutual fund investor?
Totally ignorant

[ ]

Partial knowledge of mutual funds

[ ]

Aware only of any specific scheme in which you invested [ ]

Fully aware

[ ]

d) In which kind of mutual you would like to invest?

Public [ ]
Private [ ]
c) how do you come to know about Mutual Fund?
a. Advertisement

b. Peer Group

c. Banks

d. Financial Advisors

e) Which mutual fund scheme have you used?

53

Open-ended
Liquid fund
Growth fund
Long-Cap

Close-ended
Mid- Cap
Regular Income fund
Sector fund

b) If not invested in Mutual Fund then why?

Not aware of MF

Higher risk

Not any specific reason

4. which feature of the mutual funds allure you most?

Diversification

[ ]

Better return and safety

[ ]

Reduction in risk and transaction cost

[ ]

Regular Income

[ ]

Tax benefit

[ ]

5. In which Mutual Fund you have invested? Please tick (). All applicable.
a. SBIMF
b. UTI
c. HDFC
d. Reliance
e. ICICI prudential funds
f. JM mutual fund
g. Other. Specify

6. When you invest in Mutual Funds which mode of investment will you prefer?
a. One Time Investment

b. Systematic Investment Plan (SIP)

54

7. Where from you purchase mutual funds?

Directly from the AMCs [ ]
Brokers only

[ ]

Brokers/ sub-brokers

[ ]

Other sources

[ ]

8. Which AMC will you prefer to invest?

Assets Management Co.
a. SBIMF
b. UTI
c. Reliance
d. HDFC
e. Kotak
f. ICICI
g. JM finance

9. Which sector are you investing in mutual fund sector?

x.
xi.
xii.

General 1st
Oil and petroleum
Gold fund

xiii.

Diversified equity fund

xiv.

Power sector

xv.

Debt fund

xvi.

Banking fund

xvii.

Real estate fund

xviii.

General 1st

10. How would you like to receive the returns every year?
a. Dividend payout

b. Dividend re-investment

c. Growth in NAV

11. Personal Details:

(a). Name:-

55

(b). Add: -

Contact No:-

(c). Age:(d). Qualification:Graduation/PG

Under Graduate

Others

(e). Occupation. Pl tick ()

Govt. Sec

Pvt. Sec

Business

Agriculture

Others

(g). What is your monthly family income approximately? Pl tick ().

Up to
Rs.10,000

Rs. 10,001 to
15000

Rs. 15,001 to
20,000

Rs. 20,001 to
30,000

Rs. 30,001 and

above

56

THANK YOU

57