HDFC MUTUAL FUNDS

HDFC Asset Management Company Ltd or HDFC Mutual Funds is currently the largest Mutual
Fund and actively managed mutual funds in India. It is the most profitable asset management
company AMC in the country as of 31st March 2018, the company manages asset worth Rs 3.43
lakh crore as of 31st March 2019.

HDFC MUTUAL FUNDS PROVIDES:-

Professional Advice to it’s customers –

Long-term Relationship with their customers –

Transparency & Confidentiality between the transactions that take place between customers and
banks –

SLIDE 2

Discussing about the selling process adopted by HDFC Mutual Funds it starts
with
1)Prospecting and Qualifying
Prospects are usually identified through bank database and reference of existing customers,.
2) Approaching potential customers
Employees approach the customers through cold calling or booking appointments with them to
brief them about working of mutual funds.
3) Presentation and Demonstration
Employees interact with customers by letting him know all about SIP, benefits of investing in
SIP’s, they ask if there are having any saving plans, they discuss about how inflation is
impacting in anyone’s saving, what are the different options available to beat inflation and then
they explain the benefits of investing in MF such as high returns, liquidity , trasparency etc, they
also compare investment in MF with decreasing rate of interests in RD, FD etc.
4) Overcoming objectives
The clients usually have a lot of doubts about MFs and are confused if a particular investment is
the right fit for them and their needs. The employees at HDFC help the customers in
understanding the policy and patiently answer all the questions client has.
5) Closing the sale
If the employee is meeting them personally the closing is done by making them fill a form and
ask for all the documents which are required for investment in MF
6) Follow Up’s –

Follow up in HDFC is done through calls, emails and SMS.

SLIDE 3

Moving on lets discuss

IF IT’s A CUSTOMER CENTRIC STRATEGY BEING FOLLOWED BY HDFC ?

. As per the primary and secondary data collected all of the components of customer centric
strategies are being followed except Customising of policies also they arenot focusing on both
products as well as customers .

Components of Understanding Customising Understanding Focus of After

Customer Centric Customer Needs Policies as per Customer Selling Sales
Strategy & Interests Customers Problems  Approach Service
(Q/A) on (Both
product &
customers)
  
Components
fulfilled by HDFC
bank
As per employees      
as well as
customers.

SLIDE 4

MIX of PRODUCT CENTRIC AND CUSTOMER CENTRIC STRATEGY

After the brief analysis I was able to come up with the conclusion that there’s a mix of product
and customer centric strategy being followed by HDFC MF , Justifying it with some of the sub
points

1)Positioning Strategy

Positioning starts with a product. They position the product in the mind of prospect by letting
them know all the benefits of investing in MF such as high returns, liquidity ,etc. all the benefits
create a need of mutual funds in the mind of customers.

3)Comparison Strategy

the employees of HDFC compare the returns of mutual funds with rate of interest received in
recurring depsits , fixed deposits etc, hence showing their product superior which again is a
component of product centric strategy.

4)Preferential Strategy

Employees suggest various plans depending upon the need and preference which is a component
of customer centric strategy hence mix of customer and product centric strategy is being
followed.

SLIDE 5

GAP 1 – EXPECTATIONS OF CUSTOMERS REGARDING RETUR AND NEGATIVE

FLUCTUATIONS
Customers keep tracking MF on regular basis, they don’t want to see negative fluctuations as soon as
they see negative fluctuation they exit and hence they suffer loss

SLIDE 6

RECOMMENDATIONS FOR GAP 1

At the time when employees convince customers to invest in MF, they should very clearly let the
customer know that it is a long term investment and they cannot expect positive fluctuations every
time so they should stay invested for minimum 5-6 years in HDFC Mutual Funds .

SLIDE 7

GAP 2 – MISCOMMUNICATION BETWEEN CUSTOMERS AND EMPLOYEES

The customers of HDFC have a lot of complaints regarding miscomminication

There was a case where an employee ended up opening of DMAT Account of customer without consent
of customers, this causes of loss of trust among the current customers and this causes decrease in the
current customers.

SLIDE 8

RECOMMENDATIONS FOR GAP 2

1) Calling or texting for reconfirming

2) OTP should be sent to customers for confirmation
3) Avoid Giving Unacheivable Targets - Sometimes banks give targets to employees to get
confirmation from customers on a regular basis because of which employees are under pressure
to get confirmation from customers and this sometimes results in miscommunication being done
by employees as a result there are high chances that corporate image of the firm might get
affected,
So, instead of giving unacheivable target to employees they should give limited targets to
employees and proper guidance should be given.
4)Training to Employees - Employees should be trained on regular basis and mock calls should
be done regularly with employees so that they don’t commit such mistakes in future.
 SLIDE 9

GAP 3 –MANY A TIMES ADVISORS THEMSELVES DO NOT GET TIMELY

UPDATES FROM AMC’s,

This leads them not to offer some of schemes those may give good returns.

SLIDE 10

RECOMMENDATIONS FOR GAP 3 – Proper Communication Channel - A proper

communication channel needs to be estabilished between Advisors and AMC’s

1) Resolving of Technical Errors - All the technical erros taking place in the organisation which
might result in a communication gap between AMC and Advisors should be looked upon.
2) Coordination between Employees and Advisors - Eployees and Advisors should corrdinate with
each other to resolve such issues taking place in their organisation.