A PROJECT REPORT ON

COMPARATIVE STUDTY OF MUTUAL FUND

BETWEEN HDFC AND ICICI BANKS
2017-2018
BACHELOR OF BANKING AND INSURANCE
OF
TILAK COLLEGE OF SCIENCE AND
COMMERCE
VASHI, NAVI MUMBAI- 400703
UNDER GUIDENCE OF
PROF. RAHUL KAMBLE

SUBMITTED BY
ANITA PATEL
ROLL NO-72033

DECLARATION

I,ANITA .K.PATEL here-by declare that the project report “COMPARATIVE STUDY OF
MUTUAL FUNDS BETWEEN HDFC AND ICICI BANKS” for the academic year2017-2018
under the kind guidance of PROF . RAHUL KAMBLE as the partial fulfillment of the
requirement of the course curriculum in the third year Bachelor Of Commerce(Banking And
Insurance), semester 5. The information submitted herein is true and original to the best of my
knowledge.

AKNOWLEGEMENT

A successful project is the result of team work and co-ordinates that includes not only the groups
of developers who put forth the idea , logic and efforts but also those who guide them. So , at the
completion of the project. I feel obliged to extend my gratitude towards all those who made
valuable contribution throughout my training period.
In, addition I wish to covey deep sense of gratitude towards Prof .RAHUL KAMBLE, at
any time I needed.
 At the end just as significant , I would like to express my silence thank to, Prof . RAHUL
KAMBLE and my staff member who have provided me excellent knowledge and support
throughout my graduation.
I am very much thankful to my parent , brother\sister and friends for providing strong moral
support for the completion of this project.

Executive Summary

A mutual fund is an investment fund made up of a pool of funds collected from many investors
for the purpose of investing in securities such as stocks, bonds, money market instruments and
similar assets. Mutual funds are operated by money managers, who invest the fund's capital and
attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is
structured and maintained to match the investment objectives stated in its prospectus .
Mutual fund units, or shares, can typically be purchased or redeemed as needed at the fund's
current net asset value (NAV) per share, which is sometimes expressed as NAVPS. A fund's
NAV is derived by dividing the total value of the securities in the portfolio by the total amount of
shares outstanding.
A company or trust that uses its capital toinvest in othercompanies. The two principal types are c
losedend and openend mutual funds. Shares incloseend mutual funds, some of which are listed o
n stock exchanges, are readilytransferable on the open market and are bought and sold like other
shares. Openend funds sell their own new shares toinvestors, stand ready to buy back their old sh
ares, and are not listed

The overall objective of my study on this project is to know which company provides better
investment opportunity from HDFC and ICICI and make the investor to be able to take better
decision . Of course, as every study need , I ‘d adopted and objective view of overall situation
that examines both side of the issue situated in HDFC and ICICI .

INDEX

chapter . No. contents Page . No.

1 Introduction To Topic 1

2 Introduction to companies 15
3 Literature Review 29

4 Objective 31

5 Limitation 33

6 Research methodology 35

7 Data and Analysis 38

8 Finding , suggestion , and conclusion 49

9 Bibllography 53

10 Annexure 55

Chapter 1
 Introduction of topic.

MEANING OF MUTUAL FUND :

Mutual fund is a type of financial intermediary that pools the funds of investors who seek
the same general investment objective and invests them in a number of different types of
financial claims (e.g., equity shares, bonds, money market instrument). These pooled funds
provide thousands of investors with proportional investment managers. The term ‘mutual’ is
used in the sense that all its returns, minus its expenses, are shared by the funds unit holders.
Mutual fund is a special type of institution which acts as an investment conduit. It is essentially a
mechanism of pooling together the savings of large number of investors for collective
investments with an avowed objective of attractive yields and appreciation in their value. Such
activities are undertaken on different terms by agencies popular as ‘unit trusts’ and ‘investment
companies’ in U.K. & U.S.A..

Definitions:

According to Bharti.V.Pratha
 “A Mutual Fund is a Financial Service Organization that receives money from shareholders,
invests it, earns return on it, attempts to make it grow and agrees to pay the shareholders. Cash
on demand for the current value of his investment”

According to Chandra Prasanna

“Mutual Fund is called unit trust or open ended trust – a company that invests the fund of its
subscribers in diversified securities and in turn issues units representing shares in those holdings.
They make continuous offering of new shares at net asset value and redeem the shares on
demand of net asset value determined daily by the market value of the securities they hold.”

According to Indian Institute of Banking & Finance

“A mutual fund is a type of financial intermediary that pools the funds of investors who seek the
same general investment objective & invests them in number of different types of financial
claims (e.g. equity shares, bonds, money market instruments)

Concept of mutual funds.

A mutual funds 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.
Eg. Birla Global Finance is the sponsor of Birla Sun Life Asset management company Ltd,
which has floated different mutual funds scheme and also act as an manager for funds collected
under schemes.
 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 advice where to invest or not to invest.

 To provide information regarding types of mutual fund which is beneficial for

whom.
 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 iswith the introduction of the concept of by UTI in
the year 1963 at the initiative of the Reserve Bank Of India (RBI) and the Government of the
India. 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).

 In 1963, UTI was established by the an Act Of Parliament. As it was the only entity
offering mutual funds in the India. The first scheme, and for long one of the largest lunched by
UTI, was Unit Scheme 1964. The first India Offshore Fund was launched in August 1986. The
investible fund corpus of UIT was about 600crores in 1984. By 1987-88, the assets under
management (AMU) of UTI had grown 10 times to RS 6,700crores

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

The year 1987 marked the entry of the other public sector mutual funds. With the
opening up of the economy, many public sector banks and institution were allowed to establish
mutual fund. The State Bank of India established the first non-UTI mutual fund, SBI mutual fund
in November 1987. From 1987-88 to 1992-93, the AUM increased from RS 6,700crores to RS
47,004crores, nearly seven times.

 Third phase 1993-96 (Entry of a private sector funds).

A era in the mutual fund industry began in 1993 with the permission granted for the entry of
private sector fund. Quite significantly foreign fund management companies we also allowed to
operate mutual funds, most of them coming into India through their joint ventures with Indian
promoters. The private funds have brought in with them latest product innovations, investment,
management techniques and investors-servicing technologies.

 Fourth phase 1996-2004 ONWARDS.

Since 1996, the mutual fund industry scaled newer height in term of
mobilization of funds and number of players. Deregulation and liberalization of the Indian
economy had introduced completion and provided impetus to the growth of the economy\
industry. Between 1999 and 2004 the size of the industry has doubled in terms of AUM which
have gone from above RS 68,000crores to over 1,50,000crores

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

Structure Investment Special schemes

objective

Open-ended scheme Growth scheme Industry specific

scheme
Close-ended scheme Income scheme
Index scheme
Interval scheme Balanced scheme
Sectorial scheme
Money market scheme

Mutual fund scheme may be classified on the basis of its structure and it’s
investment objective.

A. By Structure:

 Open-ended Funds

An open-ended fund is one of 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 scheme is liquidity.

 Closed-ended funds
 A closed end fund has a stipulated maturity period which generally ranging from 3 to 15
years. SEBI Regulation stipulated that at least one of the two exit routes is provided to
the investors.

 Interval funds

Interval funds combine the features of open-ended and close ended schemes. They are
open for sale or redemption during pre-determined intervals at NAV related prices.

B. By Investment Objectives.

 Growth\ equity oriented schemes

The aim of growth funds is to provide capital appreciation over the medium to long-term.
Such scheme normally invest a majority of their corpus in equities.

 Income \debt oriented schemes

The aim of income funds is to provide regular and steady in come to investors. Such
schemes generally invest in fixed income securities such as bond, corporate debentures
and government securities.

 Balanced Funds

The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earing and invest both in equities and fixed income
securities in the proportion indicated in their offer documents.

 Money market\ liquid Fund

The aim of money market funds is to provide easy liquidity, preservation of capital and
moderate income. These scheme generally invest in safer short-term instruments such as
treasury bills, certificates of deposit.
 A. Special Schemes

 Industry Specific Schemes

Industry specific schemes invest only in the industries specified in the offer document.
The investment of these funds is limited to specific industries like InfoTech, FMCG and
Pharmaceuticals etc.

 Index schemes

Index funds attempt to replicate the performance of a particular index such as the BSE
Sensex or the NSE50.

 Sectorial Schemes

Sectorial funds are those, which invest exclusively in a specified industry or a group of
industries or various segments such as ‘A’ Group shares or initial public offerings

CHARACTERICS OF MUTUAL FUNDS

 The owner is in the hands of the investors who have pooled in their funds.

 It is managed by a team of investment professionals and the other service providers.

 The pool of funds is invested in a portfolio of the marketable investment.

 The investors share is denominated by ‘units’ whose value is called as Net Asset Value
(NAV) which changes every day

 The investment portfolio is created according to the stated investment objectives of the
fund.
 Advantages of Mutual Funds

 Diversification.

Mutual fund invest in well-diversified portfolio of securities which enables investors to hold a
diversified investment portfolio.

 Professional Management.

Mutual fund manager undergoes through various research works and better investment
management skills which ensure higher returns to the investor than what he can manage on his
own.

 Liquidity (mainly in case of opened mutual funds).

 An investor may not be able to sell some of the shares held by him very easily and quickly.
Mutual funds are liquid in nature.

 Choice of scheme

Mutual funds provide investors with various scheme with different investment objectives.
Investors have the option of investing in a scheme having a correlation between its investment
objectives and their own financial goal. These scheme further have different plans\option.

 Flexibility.

Investors also benefit from the convenience and flexibility offered by mutual funds. Investors
can switch their holding from a debt scheme to an equity scheme and vice-versa.

 Low Risk.

Investors acquire a diversified portfolio securities even with a small investment in a mutual
fund. The risk in a diversified portfolio is lesser than investing in merely 2 or 3 securitires.

 Reduction of transaction cost.

Due to the economies of scale , mutual funds pay lesser transaction cost. These benefits are
passed on to the investors.

 Transparency

Funds provide investors with updated information pertaining to the markets and the schemes.
All material facts are disclosed to investors as required by the regulator.

 Safety

Mutual fund industry is part of well-regulated investment environment where the interests of
the investors are protected by the regulators.
 Drawbacks of Mutual fund

 Cost Control Not in the Hands of an Investors.

Investors has to pay investment management fees and fund distribution costs as a percentage of
the value of his investment, performance of the fund.

 No Customized Portfolios.

The portfolio of securities in which a fund invests is a decision taken by the fund manager.
Investors have no right to interfere in the decision making process of a fund manager, which
some investors find as a constraint in achieving their financial objectives.

 Difficulty in Selecting aSuitable Fund Scheme

Many investors find difficult to select one option from the plethora of funds available. For this,
they may have to take advice from financial planners in order to invest in the right fund to
achieve their objectives.

Chapter 2

Introduction of company
 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.
BACKGROUND

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank
in the private sector, as part of RBI’s liberalization of the Indian Banking Industry in
1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.

PROMOTOR

HDFC is India’s premier housing finance company and enjoys an impeccable track record in India
as well as in international markets. Since its inception in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC has developed
significant expertise in retail mortgage loans to different market segments and also has a large
corporate client base for its housing related credit facilities. With its experience in the financial
markets, strong market reputation, large shareholder base and unique consumer franchise, HDFC
was ideally positioned to promote a bank in the Indian environment.

BUISNESS FOCUS

HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank’s risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.

CAPITAL STRUCTURE
As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The paid-up
share capital of the Bank as on the said date is Rs501,29,90,634/- ( 2506495317 ) equity shares of
Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and about 18.87 % of the
equity is held by the ADS / GDR Depositories (in respect of the bank's American Depository
Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.57 % of the equity is held by
Foreign Institutional Investors (FIIs) and the Bank has 4,41,457shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange
of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts
(GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

DISTRIBUTION CHANNEL
HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s distribution network
was at 4,014 branches in 2,464 cities .All branches are linked on an online real-time basis.
Customers across India are also serviced through multiple delivery channels such as Phone
Banking, Net Banking, Mobile Banking and SMS based banking. The Bank’s expansion plans
take into account the need to have a presence in all major industrial and commercial centres ,
where its corporate customers are located, as well as the need to build a strong retail customer
base for both deposits and loan products. Being a clearing / settlement bank to various leading
stock exchanges, the Bank has branches in centres where the NSE / BSE have a strong and active
memberbase.

The Bank also has a network of 11,766 ATMs across India. HDFC Bank’s ATM network can be
accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus /
Cirrus and American Express Credit / Charge cardholders.

MANAGEMENT
Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs. Gopinath
has 39 years of experience in financial sector policy formulation in different capacities at RBI. As
Deputy Governor of RBI for seven years and member of the Board. Mrs. Gopinath had been
guiding and influencing the national policies in the diverse areas of financial sector regulation and
supervision, development and regulation of financial markets, capital account management,
management of government borrowings, forex reserves management and payment and settlement
systems.
.

The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in
public policy, administration, industry and commercial banking. Senior executives representing
HDFC are also on theboard.

Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional expertise of
the management team and the overall focus on recruiting and retaining the best talent in the
industry, the bank believes that its people are a significant competitive strength.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank’s branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the branch
network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. In terms of
core banking software, the Corporate Banking business is supported by Flexcube, while
the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are
open, scaleable and web-enabled.
The Bank has prioritised its engagement in technology and the internet as one of its key
goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market position, expertise
and technology to create a competitive advantage and build market share.
BUSINESSPROFIL

HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank has
three key business segments:

Wholesale Banking
The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and agri-based businesses.
For these customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which combine cash
management services with vendor and distributor finance for facilitating superior supply chain
management for its corporate customers. Based on its superior product delivery / service levels
and strong customer orientation, the Bank has made significant inroads into the banking consortia
of a number of leading Indian corporates including multinationals, companies from the domestic
business houses and prime public sector companies. It is recognised as a leading provider of cash
management and transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.

Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the
financial markets in India, corporates need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury products are provided
through the bank’s Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.

Retail Banking
The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to customers through
the growing branch network, as well as through alternative delivery channels like ATMs, Phone
Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the
Investment Advisory Services programs have been designed keeping in mind needs of customers
who seek distinct financial solutions, information and advice on various investment avenues. The
Bank also has a wide array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of
Depository Participant (DP) services for retail customers, providing customers the facility to hold
their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched
its credit card business in late 2001. By March 2015, the bank had a total card base (debit and
 credit cards) of over 25 million. The Bank is also one of the leading players in the “merchant
acquiring” business with over 235,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is well positioned as a leader in various net
based B2C opportunities including a wide range of internet banking services for Fixed Deposits,
Loans, Bill Payments, etc.

Products and Schemes of HDFC mutual fund

 Equity funds.

HDFC Growth Fund

HDFC Long Term Advantage Fund
HDFC Index Fund
HDFC Capital Builder Fund
HDFC Tax Saver
HDFC Top 200 Fund
HDFC Mid-Cap Opportunity Fund
HDFC Equity Fund
HDFC Core and Satellite Fund
 HDFC Long Term Equity Fund

 Balanced funds.

Debt Fund
HDFC Income Fund
HDFC Liquid Fund
HDFC Balanced Fund
HDFC Short Fund
HDFC Prudence fund
HDFC Multiple Yield Fund
HDFC High Interest Fund
HDFC Children’s Gift Fund Investment Plan
HDFC Gilt Fund Short/Long Term Plan

 Children’s gift fund.

 Debt fund.

 Liquid fund.

 Board of Directors of HDFC Bank .

The Board of Directors of the HDFC Asset Management Company LTD(AMC)

consists of the following eminent persons,

Mr. Deepak . S. Parekh Chairman of the board

Mr. N . Keith skeoch CEO of Standard Life Investment LTD
Mr. Keki . M . Mistry Associate director
Mr. James Aird Investment director
Mr. Vijay Merchant Independent director
Miss Renu . S . Karnad Joint managing director
Mr. Milind Barve Managing director
 ACHIEVEMENT AND AWARDS.

 CNBC-TV18-CRISIL Mutual Fund of the Year Awards 2008

HDFC Cash Management Fund- Saving plan

HDFC Cash Management Fund- Saving plan

 Lipper Fund Awards 2008

HDFC Prudence Fund- Growth Plan

 Mixed Asset INR Aggressive Category

 ICRA Mutual Fund AWARDS-2008

HDFC MF Monthly Income plan

HDFC Prudence Fund

HDFC High Interest Fund

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.

 PRODUCT AND SERVICE

 Personal banking

Deposits
Loans
Cards
Investments
Insurance
Demat services
Wealth management

 NRI Banking

Money Transfer
Bank Accounts
Investments
Loans
Insurance
Property Solution

 Business Banking

FX Online
Cash Management
Online Taxes
SME Services
Custodial services

 Capital Structure
 The authorized capital of ICICI Bank is 214,75crores. The issued, subscribed and paid
up capital is divided into 113250642 equity share @RS10/- each

 Board of Directors of ICICI Bank

  Mr .K .V. Kamath Chairman of board

 Mr .M. S. Sharma Executive chairman of

board

 DR. Anup .K. Pujari Executive chairman of

board

 Ms. Chanda .D. Kochhar Managing Director and

CEO

Mr. Sandeep Bakhshi Deputy Managing

Director
 Mr. N.S. Kannam Executive Director and
CEO

 Mr. K. Ramkumar Executive Director

 BUSINESS OBJECTIVE OF ICICI BANK

 Vision

To be the leading provider of financial service in India and a major global bank.

 Mission

 Create value for our stock holder.

 Expand the frontiers of or business globally.

 Maintain high standard of governance and ethics.

 We will leverage our people, technology, speed and financial capital to be

the banker of the first choice for our customer by delivering high quality,
world-class service.
  Play a proactive role in the full realization of India’s potential.

 Contribution positively to the various countries and market in which we

operate.

 AWARDS AND RECONGNITION

 For the third year in a row ICICI Bank has won “The Asset Triple A Company Awards”
for best Domestic Bank in India.

 ICICI Bank won the “Most Admired Knowledge Enterprises {MAKE} India 2009
Award.

 ICICI Bank won the first place in “Maximizing Enterprises Intellectual Capital” category,
October 28, 2009.

 Ms. Chanda Kochhar, MD and CEO was awarded with the “Best Indian Business
Women Leadership Award” at NDTV Profit Business Leadership Awards, October 26,
2009.

 ICICI Bank received two awards in CNBC Awaaz Consumer Award, one for most
preferred auto loan and the other for most preferred credit card on September30, 2009.
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.

 Chapter 3

LITERATURE REVIEW
 NReview of Literature
YRERTERE PROFILE
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 1,000ATMs. 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 area 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 Varodara , 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 Bank’s exposure to market risk a function of its trading and asset and liability
management activities and its role as a financial intermediaring 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.

Chapter 4

OBJECTIVE
OBJECTIVE

 To study the problems involved while investing in mutual fund and also the reasons for
the problem a rising.

 To compare the best mutual investment companies between HDFC and ICICI Bank.

 To know the risk &return associated with mutual fund.

 To study about the function of mutual funds in HDFC &ICICI Bank.

 To analysis which provides better returns from HDFC and ICICI Banks.
CHAPTER 5

LIMITATION
 Limitations: -

There are some limitations of my study, those are as follows,

 Sample limitation: - some sample is taken by me to know that which companies is

better in mutual funds investment.

 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.
 CHAPTER 6

RESEARCH METHODOOGY
 Research Methodology:-

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

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 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. Sampling Techniques =

 Deliberate &
 Convenience Sampling.

IV. Data Interpretation =

Data interpretation is that in which we analysis the whole collected data & tries to give it in
simple words to be understandable.
 Chapter 7

DATA ANALYSIS AND INTERPERTATION

1. Do you invest in mutual fund?

YES 100

NO 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 0
SBI 0
LIC 0
Kotak Mahindra 0
Others 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.

3. What is your age?

.
8
15-25
25-35 12

35-45 60

More than 45 20
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

4. What is your income? (Yearly based)

1 lakh 0

2-4 lakh 10

4-5 lakh 20

More than 5 70
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.

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

Family & relatives 35

Friends & peers 40

Company employee 15

Others 10
Interpretation:

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.

6. What is the time duration of your investment?

0-1 year 15

1-2 year 35

2-4year 30

more than 4 20
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 other.

7. What is your risk profile?

Innovator 20

Moderate 65

Risk adverse 15
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.

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

Highly Satisfied 15

Satisfied 25

Neutral 40

Dissatisfied 15

Highly dissatisfied 5
 5% Highly Satisfied
15%
15%
Satisfied

Neutral
25%
Dissatisfied

40% Highly
Dissatisfied

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

9. What you say which provides better returns?

HDFC 68

ICICI 32
Interpretation:

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

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

Yes 15

No 85
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 wouldn’t
like to exchange their investment.
 CHAPTER 8
FINIDING SUGGESTION
AND CONCLUSION

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.

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 mostpowerful tool to position ant

brand in the mindsets 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 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.
 BIBLOGRAPHY

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

 www.mutual funds.com

 www.sebi.govt.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?

25-3

35-45 above 45 .

4. What is your income? (Yearly based)

1 lakh 2 - 4lakh

4-5 lakh more than 5

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

2-4year more than 4 .

7. What is your risk profile?

Innovator

Moderator

Risk adverse

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

Highly satisfied

Satisfied

Neutral

Dissatisfied

Highly dissatisfied

9. What you say which provides better returns?

HDFC ICICI

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

YESNO