PROJECT DISSERTATION REPORT ON

Comparative Analysis of mutual fund of HDFC &ICICI

Submitted in partial fulfillment of the requirements

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

to

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of Submitted by

Mr. Rohtash Kumar
Name of Student: MONIKA DAGAR
MBA-IV Sem, Shift- Morning
Enrollment No.: 04717003916

Session : 2016-2018
 CONTENTS

S No Topic Page No
1 Certificate
2 Acknowledgement
3 Executive Summary
Chapter I: Introduction
Chapter II: Review of Literature
Chapter III: Research Methodology
Chapter IV: Data Reduction, Presentation & Analysis
Chapter V: Data Interpretation
Chapter VI: Summary & Conclusions
References/ Bibliography
Appendices
- List of Tables
- List of Figures
 To Whom It May Concern

I Monika Dagar, Enrolment No. 04717003917 from MBA-IV Sem, Shift Morning of the Tecnia
Institute of Advanced Studies, Delhi hereby declare that the Project Dissertation Report (MS-202)
entitled “COMPARATIVE ANALYSIS OF MUTUAL FUNDS OF HDFC & ICICI “is an original work and
the same has not been submitted to any other Institute for the award of any other degree.

Date: Signature of the Student

Certified that the Project Dissertation Report submitted in partial fulfillment of Master of Business
Administration (MBA) to be awarded by G.G.S.I.P. University, Delhi by
_________________________, Enrolment No. ________________ has been completed under my
guidance and is Satisfactory.

Date:
Signature of the Guide
Name of the Guide:
Designation:
EXECUTIVE SUMMARY

A Mutual fund is a scheme in which several people invest their money for a
financial clause. The collected money is invested in Capital market & the
money which they earned, is divided based on the number of units which they
hold.

The Mutual fund industry was started in India in a small way with UTI creating
what was effectively a small savings division within the RBI. This was fairly
successful for the next 25 years as it gave investors good returns. Due to this
RBI have a go ahead to public sector banks & financial institutions to start
Mutual Funds in India and their success gave way to private sector mutual
funds.

The advantages of Mutual Funds are Portfolio Diversification, Liquidity,

Professional Management, Ease of Companies, Less Risk, etc.

The Disadvantages of Mutual Funds are Cost, Fees, No Control over

Investments, Profitability of high returns reduced significantly, etc.

Mutual Funds have to follow specific rules and regulations which are prescribed
by the SEBI; AMFI is the apex body of all the Asset Management Companies
and is registered with the SEBI.

Mutual Funds are very easy to buy and sell. You can buy mutual funds directly
from company or broker. Before Investing in Mutual funds one has to look at all
factors like performance of the mutual funds from past 5yrs, the returns given
by mutual funds from last 5yrs & the company’s net worth has to be considered.
INTRODUCTION
What is mean by mutual fund?

Mutual funds are pools of money that are managed by an investment company.
They offer investors a variety of goals, depending on the fund and
its investment charter. Some funds, for example, seek to generate income on a
regular basis. Others seek to preserve an investor's money. Still others seek to
invest in companies that are growing at a rapid pace. Funds can impose a sales
charge, or load, on investors when they buy or sell shares. Many funds these
days are no load and impose no sales charge. Mutual funds are investment
companies regulated by the Investment Company Act of 1940. Related: open-
end fund, closed-end fund.

Concept of mutual funds

A mutual fund is a trust that pools the savings of a no. of investors, who share a
common financial goal. The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities. The income
earned through these investments and the capital appreciations realized
are shared by its unit holders 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 diversified, professionally
managed basket of securities at a relatively low cost.

Historical Aspect

Mutual fund firstly was established in 1822 in the form of Society General De
Belguique. It mainly gains the progress in Switzerland & little in franc and
Germany in its initial days. The first investment trust ³The foreign and colonial
govt. trust was founded in London in 1868.

Indian Scenario of Mutual Fund

The origin of mutual fund industry in India is with the introduction of the
concept of by UTI in the year 1963. Through the growth was slow, but it
accelerated from the year 1987 when non-UTI players entered in industry.

The mutual fund industry goes through four phases:-

  First phase 1964-87 (Establishment of UTI).

 Second phase 1987-93(Entry of public sector funds).

 Third phase 1993-2003(Entry of a private sector funds).

 Fourth phase since feb.2003 (Bifurcated of UTI).

In the first phase, UTI was established in 1963by an act of parliament. In 1978
it was delinked from RBI & the IDBI took over the control of UTI. In second
phase, SBI entered as first non-UTI mutual fund provider then it was followed
by can bank (Dec.87). PNB (Aug89) & LIC in 1989. In third phase, the private
sector entered in it. The Erstwhile Kothari pioneer (now merged with Franklin
Templeton) was first registered in July 1993 in mutual fund. In revised
registration of SEBI. In1993 the industry functions under SEBI. And the fourth
phase had bitter experience for UTI. It was bifurcated into two separate entities.
One is the specified under taking of UTI with AUM of 29,835cr. The second is
UTI mutual fund ltd. Sponsored by SBI, PNB, BOB and LIC& it is registered
with SEBI.
Types of Mutual Funds

Mutual Funds can be classified as follows:-

Wide variety of Mutual Fund Schemes exists to cater to the needs such as

financial position, risk tolerance and return expectations etc. thus mutual funds

has Variety of flavors, Being a collection of many stocks, an investors can go

for picking a mutual fund might be easy. There are over hundreds of mutual

funds scheme to choose from. It is easier to think of mutual funds in categories,

mentioned below.
Overview of existing schemes existed in mutual fund category:

BY STRUCTURE:-

1. Open - Ended Schemes:

An open-end fund is one that is available for subscription all through the year.

These do not have a fixed maturity. Investors can conveniently buy and sell

units at Net Asset Value ("NAV") related prices. The key feature of open-end

schemes is liquidity.

2. Close - Ended Schemes:

These schemes have a pre-specified maturity period. One can invest directly in

the scheme at the time of the initial issue. Depending on the structure of the

scheme there are two exit options available to an investor after the initial offer

period closes. Investors can transact (buy or sell) the units of the scheme on the

stock exchanges where they are listed. The market price at the stock exchanges

could vary from the net asset value (NAV) of the scheme on account of demand

and supply situation, expectations of unit holder and other market factors.

Alternatively some close-ended schemes provide an additional option of selling

the units directly to the Mutual Fund through periodic repurchase at the schemes

NAV; however one cannot buy units and can only sell units during the liquidity

window. SEBI Regulations ensure that at least one of the two exit routes is

provided to the investor.

3. Interval Schemes:

Interval Schemes are that scheme, which combines the features of open-ended

and close-ended schemes. The units may be traded on the stock exchange or

may be open for sale or redemption during pre-determined intervals at NAV

related price

BY NATURE:-

1. Equity fund:

These funds invest a maximum part of their corpus into equities holdings. The

structure of the fund may vary different for different schemes and the fund

manager’s outlook on different stocks.

2. Debt funds:

The objective of these Funds is to invest in debt papers. Government authorities,

private companies, banks and financial institutions are some of the major issuers

of debt papers. By investing in debt instruments, these funds ensure low risk

and provide stable income to the investors

3. Balanced fund:

As the name suggest they, are a mix of both equity and debt funds. They invest

in both equities and fixed income securities, which are in line with pre-defined

investment objective of the scheme. These schemes aim to provide investors

with the best of both the worlds. Equity part provides growth and the debt part

provides stability in returns.

BY INVESTMENT OBJECTIVE:-

1. Growth Schemes:

Growth Schemes are also known as equity schemes. The aim of these schemes

is to provide capital appreciation over medium to long term. These schemes

normally invest a major part of their fund in equities and are willing to bear

short-term decline in value for possible future appreciation.

2. Income Schemes:

Income Schemes are also known as debt schemes. The aim of these schemes is

to provide regular and steady income to investors. These schemes generally

invest in fixed income securities such as bonds and corporate debentures.

Capital appreciation in such schemes may be limited.

3. Balanced Schemes:

Balanced Schemes aim to provide both growth and income by periodically

distributing a part of the income and capital gains they earn. These schemes

invest in both shares and fixed income securities, in the proportion indicated in

their offer documents (normally 50:50).

4. Money Market Schemes:

Money Market Schemes aim to provide easy liquidity, preservation of capital

and moderate income. These schemes generally invest in safer, short-term

instruments, such as treasury bills, certificates of deposit, commercial paper and

inter-bank call money.

OTHER SCHEMES:-

1. Tax Saving Schemes:

Tax-saving schemes offer tax rebates to the investors under tax laws prescribed

from time to time. Under Sec.88 of the Income Tax Act, contributions made to

any Equity Linked Savings Scheme (ELSS) are eligible for rebate.

2. Index Schemes:

Index schemes attempt to replicate the performance of a particular index such as

the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of

only those stocks that constitute the index. The percentage of each stock to the

total holding will be identical to the stocks index weight age. And hence, the

returns from such schemes would be more or less equivalent to those of the

Index.

3. Sector Specific Schemes:

These are the funds/schemes which invest in the securities of only those sectors

or industries as specified in the offer documents. e.g. Pharmaceuticals,

Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The

returns in these funds are dependent on the performance of the respective

sectors/industries. While these funds may give higher returns, they are more

risky compared to diversified funds. Investors need to keep a watch on the

performance of those sectors/industries and must exit at an appropriate time.

Risk Associated With Mutual Funds:-

Risk is an inherent aspect of every form of investment. For Mutual Fund

investments, risks would include variability, or period-by-period fluctuations

in total return. The value of the scheme's investments may be affected by

factors affecting capital markets such as price and volume volatility in the

stock markets, interest rates, currency exchange rates, foreign investment,

changes in government policy, political, economic or other developments.

 Market risk:

At times the prices or yields of all the securities in a particular market rise

or fall due to broad outside influences. When this happens, the stock

prices of both an outstanding, highly profitable company and a fledgling

corporation may be affected. This change in price is due to 'market risk'

 Inflation risk:
 Sometimes referred to as 'loss of purchasing power'. Whenever the rate of

inflation exceeds the earnings on your investment, you run the risk that

you'll actually be able to buy less, not more.

 Credit risk:

In short, how stable is the company or entity to which you lend your

money when you invest? How certain are you that it will be able to pay

the interest you are promised, or repay your principal when the

investment matures?

 Interest rate risk:

Changing interest rates affect both equities and bonds in many ways.

Bond prices are influenced by movements in the interest rates in the

financial system. Generally, when interest rates rise, prices of the

securities fall and when interest rates drop, the prices increase. Interest

rate movements in the Indian debt markets can be volatile leading to the

possibility of large price movements up or down in debt and money

market securities and thereby to possibly large movements in the NAV

 Investment risks:

In the sect oral fund schemes, investments will be predominantly in

equities of select companies in the particular sectors. Accordingly, the

 NAV of the schemes are linked to the equity performance of such

companies and may be more volatile than a more diversified portfolio of

equities.

 Liquidity risk:

Thinly traded securities carry the danger of not being easily saleable at or

near their real values. The fund manager may therefore be unable to

quickly sell an illiquid bond and this might affect the price of the fund

unfavorably. Liquidity risk is characteristic of the Indian fixed income

market.

 Changes in the government policy:

Changes in Government policy especially in regard to the tax benefits

may impact the business prospects of the companies leading to an impact

on the investments.
STRUCTURE OF MUTUAL FUND

SPONSOR:

Sponsor is the person who acting alone or in combination with anotherbody

corporate establishes a mutual fund. Sponsor must contribute atleast 40% of
the net worth of the Investment managed and meet theeligibility criteria
prescribed under the Securities and Exchange Board of India (Mutual Fund)
Regulations, 1996. The sponsor is not responsible orliable for any loss or
shortfall resulting from the operation of theSchemes beyond the initial
contribution made by it towards setting up of the Mutual Fund.

TRUST:

The Mutual Fund is constituted as a trust in accordance with theprovisions of

the Indian Trusts Act, 1882 by the Sponsor. The trust deedis registered under
the Indian Registration Act, 1908.
TRUSTEE:

Trustee is usually a company (corporate body) or a Board of Trustees(body of

individuals). The main responsibility of the Trustee is tosafeguard the interest
of the unit holders and ensure that the AMCfunctions in the interest of
investors and in accordance with theSecurities and Exchange Board of India
(Mutual Funds) Regulations,1996, the provisions of the Trust Deed and the
Offer Documents of therespective Schemes. At least 2/3rd directors of the
Trustee areindependent directors who are not associated with the Sponsor in
anymanner.

ASSET MANAGEMENT COMPANY (AMC):

The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The
AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act
as an asset management company of the Mutual Fund. At least 50% of the directors of the
AMC areindependent directors who are not associated with the Sponsor in any manner. The
AMC must have a net worth of at least 10 cores at all times.

REGISTRAR AND TRANSFER AGENT:

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the
Mutual Fund. The Registrar processes the application form, redemption requests and
dispatches account statements to the unit holders. The Registrar and Transfer agent also
handles communications with investors and updates investor records.
Advantages:

 Portfolio Diversification: Investing in a diversified portfolio can be

very expensive. The nice thing about mutual funds that they allow
anyone to hold a diversified portfolio. The reason why investors
invest in a diversified portfolio is because it increase the expected
returns while minimizing the risk.

 Liquidity: Another advantage to mutual funds is that the assets are

liquid. In financial language, liquidity basically refers to
converting your assets to cash with relative ease.

 Professional Management: mutual funds do not require a great deal

of time or knowledge from the investor because they are managed
by professional managers.

 Ease of Companies: Mutual funds are also convenient because

they are easy to campare. This is because many mutual fund dealer
allow the investor to compare the funds on metrics such as levels
of risk, return price.

 Less Risk: Investors acquire a diversified portfolio of securities

even with a small investment in a mutual fund.

 Low transaction cost: Due to economies of scale mutual funds pay

lesser transaction cost.

 Transparency: funds provide investors with updated information

pertaining to market & schemes.

 Safety: Mutual funds industry is a part of well regulated

investment environment where interest of the investors is protected
by the regulators.
Disadvantages of Mutual Funds:

 Cost: the downside of mutual funds is that they have a high cost
associated with the in relation to the returns they produce. This is because
investors are not only charged for the price of the fund but they will often
face additional fees.

 Fees: the fees that are charged will depend on the type of mutual fund
purchased. If a fund is risker and more aggressive, the management fees
will tend to be higher.

 No control over Investments: You have absolutely no control over what

the fund manager do with your money.

 Profitability of high returns reduced significantly: A mutual fund contains

a diversified basket of securities. If a single security outperforms by a
significant margin the impact will be limited.

 Personal tax situation is not considered

Objectives

 To analysis which provides better returns from HDFC &ICICI.

 To analyze the concept and parameters of mutual fund.
 To know how many people are satisfied by their investment (in HDFC or
ICICI).
 To know people behavior regarding risk factor involved in mutual fund.

Need of the study

 The need of study arises for learning the variables available that
distinguish themutual fund of two companies.
 To know the risk & return associated with mutual fund.
 To choose best company for mutual investment between HDFC & ICICI.
 To project mutual fund as the productive avenue for investing activities.


Scope of the study

 To make people aware about concept of mutual funds.

 To provide information regarding advantages and demerits of mutual
fund.
 To advice where to invest or not to invest.
 To provide information regarding types of mutual fund which is
beneficial for whom.
Company profile

HDFC Mutual Fund

HDFC mutual fund was set up on June30,2000 with two sponsors namely
Housing Development Finance Corporation ltd. and Standard Life Insurance ltd
.HDFC mutual fund came into existence on 10Dec. 1999 and got approval from
the SEBI on 3rdJuly2000.Housing Development Finance Corporation Limited,
more popularly known as HDFC Bank Ltd, was established in the year 1994, as
a part of the liberalization of the Indian Banking Industry by Reserve Bank of
India (RBI). It was one of the first banks to receive an 'in principle' approval
from RBI, for setting up a bank in the private sector. The bank was incorporated
with the name 'HDFC Bank Limited', with its registered office in Mumbai. The
following year, it started its operations as a Scheduled Commercial Bank.
Today, the bank boasts of as many as 1412branchesand over 3275 ATMs across
India.

Products and Schemes of HDFC mutual fund:

 Equity funds.

 Balanced funds.

 Debt funds.

 Liquid funds.

Prudential ICICI Mutual Fund

The mutual fund of ICICI is a joint venture with

Prudential PLC. Of America, one of the largest life insurance companies in the
USA. Prudential ICICI mutual fund was set up on 13th of Oct. 1993 with two
sponsors. ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an
Indian financial institution, in 1994. Four years later, when the company offered
ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In
the year 2000, ICICI Bank offered made an equity offering in the form of ADRs
on the New York Stock Exchange(NYSE), thereby becoming the first Indian
company and the first bank or financial institution from non-Japan Asia to be
listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in
an all-stock amalgamation. Later in the year and the next fiscal year, the bank
made secondary market sales to institutional investors.

Products and Schemes of HDFC mutual fund

 Equity funds

 Balanced funds

 Debt funds.

 Liquid funds.

 Children’s gift fund

Other Players in Mutual Fund

 Bank of Baroda mutual fund (BOB MF)30 OCT. 1992

 Benchmark mutual funds (June 12,2001).
 Birla Sun life MF (1871).
 Can bank mutual fund (Dec. 19, 1987)
 LIC mutual fund (19th June, 1989).
 Reliance mutual fund (30 June, 1995).
 Sahara mutual fund (18 July, 1996).
 GIC (General Insurance Corporation of India). Etc
LITERATURE REVIEW
1) Name of the Book- Mutual Funds in India
Author- D.V. Ingle

Abstract- This book provides an in-depth account of the

functioning of mutual fund industry in India. The Author
D.V. Ingle has described everything about mutual funds in
India and why it is useful for small investors who cannot
directly invest in stock market.

2) Name –Investor’s preferences towards mutual fund and

future Investments.
Author- Y Prabhavathi, N.T Krishna Kishore

Abstract: The advent of mutual funds changed the way the

world invested their money. The start of mutual funds gave
an opportunity to the common man to hope of high returns
from their investments when compared to other traditional
sources of investment. The main focus of the study is to
understand the attitude, awareness and preference of mutual
fund investors.

3) ICICI Bank is India's second-largest bank with total assets of about

Rs. 1trillion and a network of about 540 branches and offices and over
1,000 ATMs. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries
and affiliates in the areas of investment banking, life and non-
Banking , venture capital, asset management and information
technology. ICICI Bank's equity shares are listed in India on stock
exchanges at Chennai, Muzaffarnagar, Kolkata and Vadodara, the
Stock Exchange, Mumbai and the National Stock Exchange of India
Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).
4) HDFC Bank’s exposure to market risk a function of its trading and
asset and liability management activities and its role as a financial
intermediary in customer-related transactions. HDFC had tried its best
in mutual fund sector. It has grown up its market share in a meanwhile
time. The objective of market risk management is to minimize the
impact of losses due to market risks on earning and equity capital.

Source:-
www.sribd.com
www.artclenich.com
RESEARCH METHODOLOY

Research refers to search for knowledge. One can also define research as
a scientific andsystematic search for pertinent information on a specific topic. It
is an art of scientific investigation.

Research Methodology:-
It is the way to systematically solve a problem. The methodology adopted
inthis study is explained below:-

 Research Design

A. Problem Defining: In a competitive situation with multiple mutual funds

operating in Indian market, it is necessary to know about the performance of
different mutual funds as the performance of mutual fund decides about the
future of Mutual Fund Company. In this study my focus is
upon performance of investors regarding HDFC &ICICI. This is my
problem to be studied for research.

B. Literature Survey: I have used newspapers, magazines related to business

&finance & apart from websites.

C. Type of research: The research is qualitative & descriptive in

nature. Qualitative research is that talk about the quality of the subject to be
researched and Descriptive research is one that describes things as exists in
present.

D. Data collection Design:

I. Sources of data =

 Primary Sources ± I have used questionnaire as primarysource for

collecting data for my study.
 Secondary sources ± I had collected my secondary datafrom websites &
journals.
II. Sampling =

It represents whole population. It is the processes of choosing a sample

from whole population .I have choose a sampleof high class & middle class
people who have invested in mutual funds as a sample.

III. Tools =
I have used some charts (Pie chart, column chart, cylinder chart, cone
chart) and hypothesis tests (chi-square one sample T-test etc.)

IV. Sampling Size =

It represents that how many candidates you’ve chosen to be filled up

your questionnaire or candidates upon whom you can study. I had chosen
sample of 100 candidates.

V. Sampling Techniques =

 Deliberate &
 Convenience Sampling

VI. Data Interpretation =

Data interpretation is that in which we analysis the whole collected data & tries
to give it in simple words to be understandable.
ANALYSIS

Q1. Do you invest in mutual fund?

YES 100
NO 0

Q-1

YES
NO

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

Q2. With which company do you have invested in mutual funds?

HDFC 65
ICICI 35
RELIANCE 0
SBI 0
LIC 0
Kotak Mahindra 0
OTHERS 0
 Sales

HDFC
ICICI
RELIANCE
SBI
LIC
MAHINDRA
OTHERS

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.

Q3. What is your age?

15-25 8
25-35 12
35-45 60
MORE THAN 45 20
 Q-3

15-25
25-35
35-45
ABOVE 45

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.

Q4. What is your income? (Yearly based)

1 lakh 0
2-4 lakh 10
4-5 lakh 20
More than 5 70
 Q-4

1 lakh
2-4 lakh
4-5 lakh
more than 5

Interpretation:

Up to 70 investors have income more than 5 lakh.20 have between 4-5 lakh.10
investors have income between2-4 lakh & there is no investor who have income
up to 1Lakh.

5. from where you come to know about this company’s mutual fund schemes?

Family & Relatives 35

Friends & peers 40
Company employees 15
others 10
 Q-5

F&R
F&P
CE
O

Interpretation:
Many investors (up to40) have been come to know about the company to be
invested by their friends & peers.35 have been known by their family &
relatives .15 have been cometo know by company employees & 10 by others.
This means many have come to know by their friends & peers.

Q6. What is the time duration of your investment?

0-1 yr 15
1-2yr 35
2-4 yr 30
More than 4 20
 Q-6
40

35

30

25

20
Q-6
15

10

0
0-1 year 1-2 year 2-4 year more than 4

Interpretation:
15 investors have time of investment less than one year.20have time duration of
their investment between of 1-2 year.30 have between 2-4year &35 have more
than4years . So, we can say that35 investors have more experience than others.

Q7. Are you satisfied by service of the company’s employees / people’s behaviour?

Highly satisfied 15
Satisfied 35
Neutral 30
Dissatisfied 15
Highly Dissatisfied 5
 Q-7

HS
S
N
D
HD

Interpretation:

Out of 100investors 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 behaviour.

8. What is your risk profile?

Innovator 20
Moderate 65
Risk adverse 15
 Q-8

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.

Q9. What you feel about the company norms, documentation & formalities?

Highly satisfied 15
Satisfied 25
Neutral 40
Dissatisfied 15
Highly dissatisfied 5
 Q-9

HS
S
N
D
HD

Interpretation:

15% investors are highly satisfied by company’s 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.

Q10. What you say which provides better returns?

Hdfc 68
Icici 32
 Q-10

hdfc
icici

Interpretation:
According to collected data 68 investors thinks that HDFC provides better
returns whereas 32 to think that ICICI provides better returns.
FINDINGS:

Findings: -
 In my research I have founded following things:-

 Investors have more faith HDFC’s 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.

Limitations: -

There are some limitations of my study, those are as Following:-

 Sample limitation: - which sample is taken by me is very small in size to Compare

mutual fund of two companies.

 Reliability: - The data collected by me is not much reliable because many

investors chosen by me have invested in HDFC.

 Parameters: - All the parameters have not been taken.

 Time limitation: - I had the shortage of time because of that I was

not able to do my study in a good manner.
  Awareness: - Investors chosen for study are not fully aware of all the
terms and conditions related to mutual fund .So, it is very difficult to
construct right information from them.

Recommendations / Suggestions: -
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 mind sets of customers.
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 effect 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 supposed 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.
Bibliography:-

 Books:- C.R. Kothari, Research Methodology. New Delhi, Vikas

Publishing house Pvt.Ltd.2007.

 ICICI and HDFC Brochure.

 Websites:-
 www.wiki.answers.com
 www.scribd. com
 www.hdfc.com
 www.icici.com
 www.google.com
Annexure
Name________________________________ Age_________
Address________________________________ Pin ___________
Sex _________ Phone _________

1. Do you invest in mutual fund?

Yes No .

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

HDFC
ICICI
Reliance
LIC
SBI
Kotak Mahindra
Others Please specify

3. What is your age?

15-25
25-35
35-45
Above 45

4. What is your income? (Yearly based)

0-1 lakh
2-4 lakh
4-5 lakh
more than 55

5. From where you come to know about this company’s mutual fund
schemes?

Family members & relatives

Friends & peers
Company’s employees
 Others Please specify

6. What is the time duration of your investment?

0-1 year
1-2 year
2-4 year
more than 4

7. Are you satisfied by service of the company’s employee’s behaviour?

Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

8. What is your risk profile?

Innovator
Moderator
Risk adverse

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

Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

10. What you say which provides better returns?

HDFC

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

YES

NO