Comparitive Analysis of mutual funds

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					        ARYABHATTA
 INSTITUTE OF MANAGEMENT

          Presentation of Research Methodology

Topic:-Comparative analysis of mutual fund of HDFC &
       ICICI

Submitted To:-                             Submitted By:-
Mr. Kamaljeet Singh                         Parneet Kaur
Lech. Of Research Methodology               175
                                            MBA
Concept
 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.
Mutual Fund in India
    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).
Profile of HDFC

 Housing Development Finance Corporation Limited, more
 popularly known as HDFC Bank Ltd, was established in
 the year 1994.
            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.
Profile of ICICI
 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.
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 choose 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.
Objectives

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 people behavior regarding risk factor
 involved in mutual fund.
  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

                                             Contd.
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.

   Literature Survey:

             I have used newspapers, magazines related to business & finance & apart from
 websites.

   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.
Data collection Design

 Sources of data =

       1)   Primary Sources – I have used questionnaire as
            primary source for collecting data for my study.
       2)   Secondary sources – I had collected my secondary
            data from websites & journals.

 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.
       Tools =

     I have used some charts (Pie chart, column chart, cylinder chart, cone chart)
and hypothesis tests (chi-square one sample T- test etc.)

       Sampling Size =

      It represents that how many candidates you’ve chosen to be filled up your
questionnaire or candidates upon whom you can study. I had chosen sample of 100
candidates.

       Sampling Techniques =

        1)   Deliberate &
        2)   Convenience Sampling.

       Data Interpretation =

        Data interpretation is that in which we analysis the whole collected data &
tries to give it in simple words to be understandable.
Analysis
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.
                         VAR00001

               Observed N Expected N                  Residual
HDFC                    65       50.0                       15.0

ICICI                        35              50.0              -15.0

Total                      100
                         Test Statistics

                                           VAR00001
    Chi-Square                                        9.000a
    Df                                                     1
    Asymp. Sig.                                         .003
        a. 0 cells (.0%) have expected frequencies less than
        5. The minimum expected cell frequency is 50.0.
3. What is your age?
    .
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 others.
7. Are you satisfied by service of the
  company’s employees / people’s behavior?

       Highly satisfied      15

       Satisfied             35

       Neutral               30

       Dissatisfied          15

       Highly Dissatisfied   5
Interpretation:

      Out of 100 investors 15 are highly satisfied. 35 are satisfied.
  30 are neutral towards employee behavior of a company. 15 are
  dissatisfied. 5 are highly dissatisfied. We say that many people
  are satisfied by employee behavior.
8. What is your risk profile?


      Innovator                 20

      Moderate                  65

      Risk adverse              15
                                65
              70
              60
              50
              40                                    Innovator
              30       20                           Moderate
                                           15
              20                                    Risk adverse
              10
               0
                   Innovator Moderate    Risk
                                        adverse


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.
9. 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.
10. 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.
11. 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.
Findings
 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.
Limitations
 Sample limitation: - which sample is taken by me is very
  small in size to Compare mutual fund of two companies.
 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.
Recommendations / Suggestions:
  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.
  Both should more emphasize on advertising, as it is the most
   Powerful tool to position an brand in the minds of customers.
Conclusion
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.
Annexure
Name ________________________ Age _________
Adress_____________________________________
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              Please specify
3. What is your age?

 15-25                    25-35

 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’emplooyes

  Others
                                  Please specify
6. What is the time duration of your investment?

  0-1 year                        1-2 year

  2-4year                         more than 4       .

7. Are you satisfied by service of the company’s employees / people’s behavior?

 Highly satisfied

 Satisfied

 Neutral

 Dissatisfied

 Highly dissatisfied .
8. What is your risk profile?

  Innovator

 Moderator

 Risk adverse

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

  Highly satisfied

  Satisfied

   Neutral

   Dissatisfied

   Highly dissatisfied
10. What you say which provides better returns?



       HDFC                      ICICI



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

       YES                       NO

				
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