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Presentation On Mutual Fund

Concept of Mutual Fund

A Mutual fund is a common pool of money into which investors place their contrib
utions that are to be invested in accordance with a stated objective.
Mutual Fund Operation Flow Chart
History of Mutual Fund Industry

Inception of UTI (Unit Trust of India) in 1963. It started its operation in July
1964 Introduction of Public Sector MF Institution in 1987 - LIC & GIC in 1987 -
SBI MF June 1987 - Canbank MF December 1987, - Punjab National Bank MF August 1
989 - Bank of India MF June 1990 & - Bank of Baroda MF Oct 1992 Introduction of
Private MF institution in 1993
Classification of Mutual Fund
Why one should invest inMutual fund?

Portfolio Diversification Professional Management Liquidity Variety Tax Benefits


Transparency
BANK’S FD V/S MUTUAL FUNDS
BANKS
Returns Administrative expenses Risk Investment options Network Liquidity Qualit
y of assets Interest calculation low High Low Less High penetration At a cost No
t transparent Minimum balance between 10th. & 30th. Of every month
MUTUAL FUNDS
Better low Moderate More Low but improving Better Transparent Everyday
Mutual Fund Industry Graph:-
Current Market Scenario:
Total market capitalization or Asset Under Management of Mutual Fund industry in
India as on 31st Dec.2008 is Rs.421114.61 Crore. - Reliance Mutual Fund AMC alo
ne handling around Rs.70,208.10 Crore as on 31st Dec.2008 & ranked first in term
s of total AUM.
Top 5 Fund Houses in Terms of Total AUM managed:Am ount in Rs. C rore
Mutual Fund Name
Reliance Mutual Fund HDFC Mutual Fund UTI Mutual Fund ICICI Prudential Mutual Fu
nd Birla Mutual Fund
Corpus as on Dec 31, 2008
70,208.10 46,757.45 42,548.17 41,877.52 36,565.19
Corpus as on Nov31, 2008
67,815.86 44,262.00 38,358.14 37,055.68 31,900.95
Net inc/dec in corpus
2392.241 2495.45 4190.026 4821.844 4664.233
HDFC Asset Management Company Ltd. (AMC)
HDFC Asset Management Company Ltd. (AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act
, 1956, on December 10, 1999, and was approved to act as an Asset Management Com
pany for the HDFC Mutual Fund by SEBI on July 3, 2000. The registered office of
the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Re
clamation, Churchgate, Mumbai - 400 020
• The present equity shareholding pattern of the AMC is as follows:Particulars
Housing Development Finance Corporation Limited Standard Life Investments Limite
d % of the paid up equity capital 60 40
Vision Statement
Why HDFC Mutual Fund?

HDFC Mutual Fund is one of the largest mutual funds and well-established fund ho
use in the country with consistent and above average fund performance across cat
egories since its incorporation on December 10, 1999. While our past experience
does make us a veteran, but when it comes to investments, we have never believed
that the experience is enough.
Our Investment Philosophy

The single most important factor that drives HDFC Mutual Fund is its belief to g
ive the investor the chance to profitably invest in the financial market, withou
t constantly worrying about the market swings. To realize this belief, HDFC Mutu
al Fund has set up the infrastructure required to conduct all the fundamental re
search and back it up with effective analysis. Our strong emphasis on managing a
nd controlling portfolio risk avoids chasing the latest “fads” and trends.
We Offer

We believe, that, by giving the investor long-term benefits, we have to constant


ly review the markets for new trends, to identify new growth sectors and share t
his knowledge with our investors in the form of product offerings. We have come
up with various products across asset and risk categories to enable investors to
invest in line with their investment objectives and risk taking capacity. Besid
es, we also offer Portfolio Management Services.
Our Achievements

HDFC Asset Management Company (AMC) is the first AMC in India to have been assig
ned the ‘CRISIL Fund House Level – 1’ rating. This is its highest Fund Governance and
Process Quality Rating which reflects the highest governance levels and fund man
agement practices at HDFC AMC. It is the only fund house to have been assigned t
his rating for two years in succession
Selection of Three Funds for Study
Funds which are selected for study are; - For Equity Related fund
HDFC Top 200 Fund

Investment Objective:
To generate long term capital appreciation from a portfolio of equity and equity
-linked instruments primarily drawn from the companies in BSE 200 index.

Nature of Scheme :- Open Ended Growth Scheme Inception Date :- October 11, 1996
Option/Plan :- Dividend Plan, Growth Plan.
The Dividend Plan offers Dividend Payout and Reinvestment Facility.

Fund Manager Benchmark


:- Mr. Prashant Jain (since Jun19, 03)* :- BSE 200
Investment Pattern
The asset allocation under the Scheme will be as follows :Sr.No 1. Asset Type Eq
uities and Equity Related Instruments Debt & Money Market Instruments (% of Port
folio ) Upto 100% (including use of derivatives for hedging and other uses as pe
rmitted by prevailing SEBI Regulations) Balance in Debt & Money Market Instrumen
ts Risk Profile Medium to High Low to Medium
2.
Portfolio- Top 10 Holding (as at Nov 30, 2008)
HDFC Core & Satellite Fund:
Investment Objective:
To generate capital appreciation through equity investment in companies whose sh
ares are quoting at prices below their true level.

Nature of Scheme :- Open Ended Growth Scheme Inception Date :- Sept 17, 2007 Opt
ion/Plan :- Dividend Plan, Growth Plan. Fund Manager Benchmark
The Dividend Plan offers Dividend Payout and Reinvestment Facility. :- Mr. Vinay
Kulkarni (since Nov21, 06)* :- BSE 200
Portfolio- Top 10 Holding (as at Nov 30, 2008)
HDFC Capital Builder Fund

Investment Objective:
To achieve capital appreciation in the long term.

Nature of Scheme :- Open Ended Growth Scheme Inception Date


Option/Plan
:- Feb 01, 1994 :- Dividend Plan, Growth Plan.
The Dividend Plan offers Dividend Payout and Reinvestment Facility.

Fund Manager Benchmark


:- Mr. Chirag Setalvad (since Apr2,2007)* :- S & P CNX 500
Portfolio- Top 10 Holding (as at Nov 30, 2008)
Best recent performer among the three funds
HDFC Top 200 Fund
HDFC Core & Satellite Fund:-
HDFC Capital Builder Fund
Conclusion:-

Looking at the performance of all the three funds of last 1 year we can say that
HDFC Top 200 Fund is the top performer among the three funds
Funds which are selected for study are:- For Hybrid Fund
HDFC Prudence Fund

Investment Objective:The investment objective of the Scheme is to provide period


ic returns and capital appreciation over a long period of time, from a judicious
mix of equity and debt investments, with the aim to prevent/ minimise any capit
al erosion. Nature of Scheme :- Open Ended Balanced Scheme

Inception Date Option/Plan Fund Manager Benchmark


:- February 01, 1994 :- Dividend Plan, Growth Plan.
The Dividend Plan offers Dividend Payout and Reinvestment Facility

:- Mr. Prashant Jain (since Jun19, 03)* :- CRISIL Balanced Fund Index
Investment Pattern
The asset allocation under the Scheme will be as follows :Sr.No Type of Instrume
nts 1. 2. Equities and Equity Related Instruments Debt & Money Market Instrument
s Normal Allocation (% of Net Assets) 40 - 75% 25 - 60% Medium to High Low to Me
dium Risk Profile
Portfolio- Top 10 Holding (as at Nov 30, 2008)
HDFC Balanced Fund

Investment Objective:To generate capital appreciation along with current income


from a combined portfolio of equity & equity-related and debt & money market ins
truments. Nature of Scheme :- Open Ended Balanced Scheme Inception Date :- Sep 1
1,2000 Option/Plan :- Dividend Plan, Growth Plan. The Dividend Plan offers Divid
end Payout and Reinvestment Facility Fund Manager :- Mr. Chirag Setalvad (since
Apr2,2007)* Benchmark :- CRISIL Balanced Fund Index
Portfolio- Top 10 Holding (as at Nov 30, 2008)
HDFC Children’s Gift Fund (Investment Plan)

Investment Objective:The primary objective of the scheme is to generate long ter


m capital appreciation.

Nature of Scheme Inception Date Option/Plan Fund Manager Benchmark


:- Open Ended Balanced Scheme :- March 2, 2001. :- Dividend Plan, Growth Plan.
The Dividend Plan offers Dividend Pay and Reinvestment Facility :- Mr. Chirag Se
talvad (since Apr2,2007)* :- CRISIL Balanced Fund Index
Portfolio- Top 10 Holding (as at Nov 30, 2008)
Best recent performer among the three funds
HDFC Prudence Fund
HDFC Children’s Gift Fund (Investment Plan)
HDFC Balanced Fund
Conclusion:-

Looking at the performance of all the three funds of last 1 year we can say that
HDFC Balanced Fund is the top performer among the three funds
U O
H T
K N A

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