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Submitted By ISHITA BAXI [Batch: 2011-13, MBA SEMESTER]


Prof. B. C. AJMERA

S. NO.

CONTENTS Title of the Project Introduction of Mutual Fund Company Profile Review of Literature Need & Scope of Study Objective of Study Research Methodology Bibliography

PAGE NO. 3 4 9 10 11 12 13 15

2. 3. 4. 5. 6. 7. 8.


Title of the Project

A Project report On


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 The 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 1963 by 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 (Aug 89) & 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 I n 1993 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 Fund


Investment objective

Special schemes
Industry specific Specific

Open Ended




Index schemes



Sector schemes

Money Market

HDFC Mutual Fund

HDFC mutual fund was set up on June 30, 2000 with two sponsors namely Housing Development Finance Corporation ltd. and Standard Life Insurance ltd. HDFC mutual fund came into existence on 10 Dec. 1999 and got approval from the SEBI on 3rd July 2000. 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 1412 branches and over 3275 ATMs across India.

Products and Schemes of HDFC mutual fund Equity funds. Balanced funds. Debt funds. Liquid funds.

Prudential ICICI Mutual Fund










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 ICICI mutual fund Equity funds. Balanced funds. Debt funds. Liquid funds. Childrens gift fund

Other Players in Mutual Fund

Bank of Baroda mutual fund (BOB MF) 30OCT. 1992. Benchmark mutual funds (June 12, 2001). Birla Sun life MF (1871). Chola mutual fund (3 Jan. 1997). Can bank mutual fund (Dec. 19, 1987). LIC mutual fund (19th June, 1989). Reliance mutual fund (30June, 1995). Sahara mutual fund (18 July, 1996). GIC (General Insurance Corporation of India). Etc.

3. Company Profile

ICICI Bank is India's second-largest bank with total assets of about Rs. 1trillionand a network of about 540 branches and offices and over 1,000ATMs. 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).

HDFC Banks exposure to market risk a function of its trading and asset and liability management activities and its role as a financial intermediary in customerrelated 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.

4. Review of Literature

Literature review

Zakri Y. Bello (2005) matched a sample of socially responsible stock mutual funds matched to randomly selected conventional funds of similar net assets to investigate differences in characteristics of assets held, degree of portfolio diversification and variable effects of diversification on investment performance. The study found that socially responsible funds do not differ significantly from conventional funds in terms of any of these attributes. Moreover, the effect of diversification on investment performance is not different between the two groups. Both groups underperformed the Domini 400 Social Index and S & P 500 during the study period.

5. Need & Scope of Study

Need of the study
The need of study arises for learning the variables available that distinguish the mutual fund of two companies. To know the risk & return associated with mutual fund. To chose 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 fund. To provide information regarding advantages and demerits of mutual fund. To provide awareness about various scheme of mutual fund provided by different service sector To provide information regarding types of mutual fund which is beneficial for whom.

6. Objective of Study

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 peoples behavior regarding risk factors involved in mutual fund. To aware to invester of advantage and disadvantages of investment in Mutual Fund To aware the investor of mutual funds as investment tool

7. Research Methodology
Meaning of Research
Research refers to search for knowledge. One can also define research as a scientific and systematic 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 in this study is explained below:-

Research Design
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. A. Literature Survey: I have used newspapers, magazines related to business & finance & apart from websites. B. 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.

C. Data collection Design: I. Sources of data = Primary Sources I have used questionnaire as primary source for collecting data for my study. Secondary sources I had collected my secondary data from websites & journals.

II. Sampling =

It represents whole population. It is the processes of choosing a sample from whole population .I have choose a sample of 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 youve chosen to be filled up your questionnaire or candidates upon whom you can study. I had chosen sample of 100 candidates.

8. Bibliography

www.wiki.answers.com www.scribd.com www.hdfc.com www.icici.com www.google.com

Cr Kothari, research methodology, new age international private ltd, new Deli, second edition 2004.

Bharati V. Pathak, 'Indian Financial System', 2003 Edition, Pearson Education.