HDFC Asset Management Company Limited

(AMC)

Presenter: Vishwanath Pratap Tiwari

 Mutual Fund?
• Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal.

• 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

appreciation 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 a diversified,
professionally managed basket of securities at a relatively low cost.
Operation Flow Chart
Organisation of Mutual Fund
 Terminologies
• NAV
• SALES PRICE
• REPURCHASE PRICE
• REDEMPTION PRICE
• SALES LOAD
• PURCHASE – BACK END LOAD
Vision Statement
 Company Profile
• HDFC Asset Management Company Ltd (AMC) was incorporated
under the Companies Act, 1956, on December 10, 1999.

• Under the Investment Management Agreement, the Trustee has

appointed the HDFC Asset Management Company Limited to
manage the Mutual Fund. The paid up capital of the AMC is Rs.
25.161 crore.

The present equity shareholding pattern of the AMC is as follows :

Particulars Percentage

Housing Development Finance Corporation Limited 60%

Standard Life Investments Limited 40%
 Board of Directors
The Board of Directors of the HDFC Asset Management Company Limited
(AMC) consists of the following eminent persons.

• Mr. Deepak S. Parekh

• Mr. N. keith Skeoch
• Mr. Keki M. Mistrv
• Mr. James Aird
• Mr. P. M.Thamni
• Mr. Humavun Dhanraigir
• Dr. Deepak B. Phatak
• Mr. Hoshang S. Billimoria
• Mr. Rajeshwar Raj Bajaaj
• Mr. Vijay Merchant
• Ms. Renu Kamad
• Mr. Milind Barve
 ASSETS UNDER MANAGEMENT
• HDFC Mutual Fund has become the second asset
management house to cross Rs 1 lakh crore mark in the
domestic fund market and joined the bandwagon with
Reliance Mutual Fund.
• In November, the average asset under management
(AAUM) of HDFC was Rs 1.02 lakh crore, as per the
latest statistics declared by the Association of Mutual
Fund of India (AMFI).
• This is a rise of close to 10 per cent compared with the
October performance of HDFC when the fund house's
AUM stood at Rs 93,316 crore as assets under
management.
 PRODUCTS
Equity / Growth Fund: Invest primarily in equity and equity
related instruments.
Children's Gift Fund: Children's Gift Fund.
Fixed Maturity Plan: Invest primarily in Debt / Money Market
Instruments and Government Securities.
Liquid Funds: Provide high level of liquidity by investing in
money market and debt instruments.
Debt/ Income Fund: Invest in money market and debt
instruments and provide optimum balance of yield.
Quarterly Interval Fund: The primary objective of the Scheme
is to generate regular income through investment.
 Facilities Offered
• HDFCMF Online
• HDFCMF Mobile
• NEFT Facility
• HDFCMF e services
Growth in AUM in Indian Mutual
Fund Industry

-Growth of AUM was 35%

between 31st march 2005 t0
31st march 2009
-It was despite of fall in
AUM
1) DOTCOM Bubble
2) Global economic
slowdown in 2008
• AUM to GDP ratio
grows from 6% to
11% in india,
however this is much
lower than developed
country which is
between 20%- 70%
 Challenges and Issues
• Low customer level awareness and financial
literacy
• Limited focus of fund houses –retail penetration
– top 20 cities only
• Product-led not customer focus
• Limited flexibility in timing and pricing
structures currently
• Limited focus on public sector network including
public sector bank, India post for distribution.
 Future Outlook
• KPMG is of the view that industry AUM is
likely to grow 15% to 25% from 2010 to
2015
• Profitability of companies may reduce
further as revenues shrink and operating
cost escalates.
 Future Action Plan
Need for collaborative efforts among all
stakeholders to harness future growth
potential and reach out to customer.
Thank You