INDUSTRY PROFILE Banking in India

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955.

Structure of the organized banking sector in India. Number of banks are in brackets

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History
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires shareholders to be held liable for the company's debt) It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. Nationalization

Banks Nationalization in India: Newspaper Clipping, Times of India, July 20, 1969 Despite the provisions, control and regulations of Reserve Bank of India, banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. Indira Gandhi, then Prime Minister of India, expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The meeting received the paper with enthusiasm. Thereafter, her move was swift and sudden. The Government of India issued an ordinance and
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nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969.Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.

The Indian banking Industry is in the middle of an expansion of centric in retail and rural banking. Players

IT

revolution, Focusing on the

are becoming increasingly customer -

their approach, which has resulted in innovative methods of offering new the importance of being a and acquisitions to Basel II regulation.

banking products and services. Banks are now realizing

big player and are beginning to focus their attention on mergers take advantage of economies of scale and/or comply with

Indian banking industry assets are expected to reach US trillion by 2010 and are poised to receive a greater infusion of foreign capital, says Prathima Rajan, analyst in Clints banking group and author of the report.The banking industry should focus on having a small number of large players that can compete globally rather than having a large number of fragmented players."

Liberalization
In the early 1990 s, the then Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of
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Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 74% with some restrictions.

Indian Banking Sector: Brief Introduction Indian Banking Sector: Key Statistics

According to the Reserve Bank of India (RBI)'s Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks', March 2011, Nationalised Banks, as a group, accounted for 53.0 per cent of the aggregate deposits, while State Bank of India (SBI) and its associates accounted for 21.6 per cent. The share of New private sector banks, Old private sector banks, Foreign banks and Regional Rural banks in aggregate deposits was 13.4 per cent, 4.6 per cent, 4.4 per cent and 3 per cent respectively.

With respect to gross bank credit also, nationalised banks hold the highest share of 52.8 per cent in the total bank credit, with SBI and its associates at 22.1 per cent and New Private sector banks at 13.2 per cent. Foreign banks, Old private sector banks and Regional Rural banks held relatively lower shares in the total bank credit with 4.9 per cent, 4.6 per cent and 2.4 per cent respectively.

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Another statement from RBI has revealed that bank advances grew 17.08 per cent annually as on December 16 while bank deposits rose 18.03 per cent.

RBI data shows that India raised US$ 1.6 billion through external commercial borrowings (ECBs) in November 2011 for new projects, capital outlay et al. 78 companies raised US$ 1.3 billion under automatic route and US$ 253 million was raised under the approval route (it requires case-by-case approval by the regulator).

India's foreign exchange reserves stood at US$ 297 billion as on December 30, 2011. In recent years, deposits under non-resident Indians (NRI) schemes have witnessed an upsurge. There was an inflow Rs 14,763 crore (US$ 2.83 billion) under NRI deposits in 2010-11, which was 6.5 per cent higher from 2009-10. In 2011, the total of NRI deposits was Rs 2,30,812 crore (US$ 44.2 billion), compared to Rs 2,27,078 crore (US$ 43.5 billion) in 2010.

Indian Banking Sector: Recent Developments

The US Export-Import Bank, with a commitment of US$ 7 billion, is on a way to diversify its portfolio in India by financing projects in education, healthcare and agriculture. After Mexico, India is the second biggest investment destination for the bank as the entity anticipates the country to become the largest market in next 12-18 months.

India Infrastructure Finance Company Ltd (IIFCL) and IDBI Bank have inked a fiveyear memorandum of understanding (MoU) to launch infrastructure debt fund (IDF)

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schemes. The IDF, for which IDBI Bank and IIFCL would play strategic investors, is expected to get launched by the end of February 2012.

With 'green power' projects getting highly popular in India, especially in the states of Gujarat and Rajasthan, banks are increasingly opening up to projects from nonconventional (solar and wind) energy space. After receiving project proposals that were meant for a particular industry/consumer or group of industries/consumers for their own use, banks are now getting projects that entail commercial viability (25-100 mega watt).

With an intension to strengthen its hold in Southern India, the Uco Bank is planning to add 11 more branches in Andhra Pradesh to its 66-branch-strong network in the state. The bank has made exemplary progress in recent past with 2,004 branches in the country and four abroad.

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COMPANY PROFILE Background and Inception of the company

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and ChairmanEmeritus, of HDFC Group. HDFC BANK LTD was amongst the first to set up a bank in the private sector. The bank was incorporated on 30th August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai.It commenced operations as a Scheduled Commercial Bank on 16th January 1995. The bank has grown consistently and is now amongst the leading players in the industry.

HDFC Bank Ltd Was incorporated on August 30, 1994 by Housing Development Finance Corporation Ltd. In the year 1994, Housing Development Finance Corporation Ltd was amongst the first to receive an 'in principle' approval from the Reserve Bank of India to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. In the year 1996, the Bank was appointed as the clearing bank by the NSCCL. In the year 1997, the launched retail investment advisory services. In the year 1998, they launched their first retail lending product, Loans against Shares. In the year 1999, the Bank launched online, realtime NetBanking. In February 2000, Times Bank Ltd, owned by Bennett, Coleman & Co. / Times Group amalgamated with the Bank Ltd. This was the first merger of two private banks in India. The Bank was the first Bank to launch an International Debit Card in association with VISA (Visa Electron). During the year 2009-10, the Bank expanded their distribution network from 1,412 branches in 528 cities to 1,725 branches in 779 cities. The Bank's ATMs increased from 3,295 Nos to 4,232 Nos during the year. As on June 30, 2010, the total number of branches (including extension counters) and the ATM network stood at 1725 branches and 4393 ATMs respectively.

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INTEGRATED FINANCIAL SERVICES

SECURITISATION

HDFC CHUBB GENERAL INSURANCE CO. LTD.

Future Activities

DISTRIBUTION

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NATURE OF BUSINESS CARRIED

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 corporate and agri-based businesses.

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

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.

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MISSION

World Class Indian Bank Benchmarking against international standards. To build sound customer franchises across distinct businesses Best practices in terms of product offerings, technology, service levels, risk management and audit & compliance

VISION

The HDFC Bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Banks business philosophy is based on four core values such as:-

Operational excellence. Customer Focus. Product leadership. People.

The objective of the HDFC Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-step window for all his/her requirements. The HDFC Bank plus and the investment advisory services programs

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have been designed keeping in mind needs of customers who seeks distinct financial solutions, information and advice on various investment avenues. Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a customer's need and occupational status, we have a range of solutions that are second to none.

Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner, HDFC Bank not only has the perfect solution for you, but also can recommend products that can augment your planning for the future.

AREA OF OPERATION
HDFC Bank Ltd is a major Indian financial services company based in Mumbai. The Bank is a publicly held banking company engaged in providing a wide range of banking and financial services including commercial banking and treasury operations. The Bank at present has an enviable network of 1,725 branches spread in 780 cities across India. They also have one overseas branch in Bahrain and two representative offices in UAE and Kenya. The Bank has two subsidiary companies, namely HDFC Securities Ltd and HDB Financial Services Ltd

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PRODUCTS AND SERVICES PROFILE

Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever your occupation, we are confident that you will find the perfect banking solution. Open an account in your name or register for one jointly with a family member today.

Fixed Deposits

Long-term investments form the chunk of everybody's future plans. An alternative to simply applying for loans, fixed deposits allow you to borrow from your own funds for a limited period, thus fulfilling your needs as well as keeping your savings secure.

Current Accounts

Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have numerous daily banking transactions. Current Accounts are cheque operated accounts meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of business hence they are non-interest bearing accounts.

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Demat Accounts

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 1 million demat accounts. HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository particpant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

Current Acco

Recurring Deposits
Recurring deposit is an account with the bank (like savings account). In this account, you have to deposit certain fixed amount every month for the period proposed. In other words, if you opt to deposit Rs.500 for 24 months, you have to deposit similar amount every month for 24 months and you will receive the entire amount with interest during the 25th month.

Safe Deposit Lockers

Safe Deposit Locker facility is one of the subsidiary services provided by the Bank for keeping the valuables in the safe deposit locker. This provides safety to the belongings of the customers against theft / burglary. Bank provides specially designed lockers kept at specially built strong rooms for keeping the valuables of the hirer purchased from reputed manufacturers.
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OWNERSHIP PATERN
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

BOARD OF DIRECTORS
PERSON Mr. Jagdish Capoor Mr. Aditya Puri Mr. Paresh Sukthankar Mr. Harish Engineer Mr. Keki M. Mistry Mr. Ashim Samanta Mr. Arvind Pande Mrs. Renu Karnad Mr. C M Vasudev Mr. Gautam Divan Dr. Pandit Palande DESIGNATION Vice President Managing Director Executive Director Executive Director Director Director Director Director Director Director Director

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COMPETITORS

State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking and financial services company in India by revenue, assets and market capitalization. Its a state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2011, it had assets of US$ 370 billion with over 13,000 outlets including 150 overseas branches and agents globally. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. Thegovernment of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India.

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. The Bank has a network of 2,630 branches and 8,003 ATMs in India, and has a presence in 19 countries, including India.

HSBC Bank is a subsidiary of HSBC Holdings plc, a London based banking giant which, according to the Forbes magazine, is the largest banking group in the world, and the 6th largest company in the world as of April 2009. HSBC Holdings had been established in Hong Kong in the year 1990 as the parent company to the Hongkong and Shanghai Banking Corporation (HSBC). Further, the bank moved its headquarters from Hong Kong to London.
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Axis Bank Limited, formerly UTI Bank, (BSE: 532215, LSE: AXBC) is an Indian financial services firm that had begun operations in 1994, after theGovernment of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated entities with similar name.[3] After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009

Kotak

Mahindra

Bank (BSE: 500247, NSE: KOTAKBANK)

is

an

Indian financial

service firm established in 1985. It was previously known asKotak Mahindra Finance Limited, a non-banking financial company. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank. Today it has more than 20,000 employees and Rs. 10,000 crore in revenue.[2]

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INFRASTRUCTURAL FACILITIES
HDFC BANK providing good infra structure facilities which are required for employs to perform their work in a better way, during the year the company has invested in additional infrastructure capacity and human capital, in terms of offices, technologies ,staff, financial consultants, in order to be well position to increase the growth momentum in the year ahead. The company stepped up the recruitment program in the letter part of the year in preparation for the next year.

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ACHIEVEMENTS/ AWARDS IF ANY

AWARD CATAGERY AWARD NAME

Dun & Bradstreet American Express Corporate 'CORPORATE BEST BANK' AWARD Best Bank Award 2007 The Bombay Stock Exchange and Nasscom 'Best Corporate Social Responsibility Practice' Foundation's Business for Social Responsibility Award Awards NDTV Profit The Asian Banker Excellence in Retail Financial Best Retail Bank in India Services Our Managing Director Aditya Puri wins the Asian Banker Leadership Achievement Award for India Finance Asia Country Awards For Achievement 'Best Bank And Best Cash Management Bank' 2008 CNN-IBN Nasscom IT User Award 2008 Business India Forbes Asia Asian Banker Excellence in Retail Financial Best Retail Bank 2008 Services Best local Cash Management Bank Award voted Asiamoney by Corporates
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Best Bank Award in the Private sector category.

'Indian of the Year (Business)' 'Best IT Adoption in the Banking Sector' 'Best Bank 2008' Fab 50 companies in Asia Pacific

Microsoft & Indian Express Group

Security Strategist Award 2008 For outstanding contribution to international trade

World Trade Center Award of honour services. Business Today Financial Express-Ernst & Young Award One of India's "Most Innovative Companies" Best Bank Award in the Private Sector category

Global HR Excellence Awards - Asia Pacific 'Employer Brand of the Year 2007 -2008' Award HRM BUSINESS TODAY EUROMONEY AWARDS 2009 Economic Times Brand Equity & Nielsen Most Trusted Brand - Runner Up Research annual survey 2009 Asia Money 2009 Awards IBA Banking Technology Awards 2009 Global Finance Award IDRBT Banking Technology Excellence Award 'Best IT Governance and Value Delivery' 2008 Asian Banker Excellence in Retail Financial 'Asian Banker Best Retail Bank in India Award Services 2009 ' HDFC Bank bags 2011 Celent Model Bank Award for effective technology implementation 'Best Domestic Bank in India' 'Best IT Governance Award - Runner up' 'Best Trade Finance Bank in India for 2009 First Runner up, & many more 'BEST BANK' AWARD 'BEST BANK IN INDIA'

Best Bank in the Private Sector category

NDTV Business Leadership Awards 2010

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MCKENCYS 7 S MODEL

SHARED VALUES
Our business philosophy is based on four core values - Customer Focus, Operational Excellence, Product Leadership and People. We believe that the ultimate identity and success of our bank will reside in the exceptional quality of our people and their extraordinary efforts. For this reason, we are committed to hiring, developing, motivating and retaining the best people in the industry.

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STRUCTURE

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STRATEGY

Our business strategy emphasizes the following : Increase our market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain our current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce our cost of funds.

SYSTEM
System in the 7-s frame work refers to the rules, regulations & procedures both formal & informal. It includes planning & control system, capital budgeting system, recruitment training & development system & performance evolution system. Planning & control system: This is very important function in HDFC bank, which is done by the top mgt. it prepares plan every year by considering the potentiality, infrastructure facility & past performance.
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STAFF
Staffing is the process of acquiring human resources for the organization and assuring that they have potential to contribute to the achievement of the organization goals. In the McKinsey 7-s frame work the term staff has a specific connotation. According to waterman and his colleagues the term staff refers to the way of organization introduce young recruits in to the mainstream of their activities and the manner in which they manage their careers as the new entrants develop into the future manager. Career Development Program in HDFC Bank: Successful candidates placed on the jobs need training to perform their duties effectively, training and development constitutes an outgoing process in any organization. The various executive developments and training programs middle level management and work level management. 1. Training program on financing self-help group. 2. Training program on internal audit of branches and concurrent audit for inspection officers and internal auditor of HCFC Bank. 3. Workshop on self help group development program for field supervisor to improves the skill and efficiency. 4. Training program on development action plan for chief executive officers of HDFC bank. undergone by the

SKILL
In the Mc Kinsey 7-s framework, watermen consider skill as one of the most crucial attribute or capabilities of an organization. The term skill includes those characteristics,

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which most people use to describe a company. In other words skill refers to dominant skills or distinctive competence of an organization. Dominate skills or Distinctive are having competence of HDFC Bank: 1. people of district are having good faith towards HDFC Bank 2. Hard working and efficient staff. 3. Autonomy in Decision making 4. Providing agriculture loan at low rate of interest. 5. Leadership Infrastructures. 6. Working with own funds.

Style:
Style is one of the 7 levels which can use to bring about organizational different frames each other in their style of working. SCDCC branch mangers are the most basic ingredients for the success of the organization. The manager plays a crucial role in making continuous planning and organizational both internally and internally and externally in order to meet changing customer tastes. The special characteristics that are found in the manager are 1. influencing behavior 2. common goals 3. Reciprocal relationship & work cultures.

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SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses, and for looking at the Opportunities and Threats you face. Used in a business context, it helps you carve a sustainable niche in your market. Used in a personal context, it helps you develop your career in a way that takes best advantage of your talents, abilities and opportunities. SWOT ANALAYSIS OF HDFC BANK

STRENGTH Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image Products have required accreditations. High degree of customer satisfaction.
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 Good place to work Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES

Some gaps in range for certain sectors. Customer service staff needs training. Processes and systems, etc Management cover insufficient. Sectoral growth staff OPPORTUNITIES is constrained by low unemployment levels and competition for

Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques to provide added-value services.

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THREATS

Legislation could impact. Great risk involved Very high competition prevailing in the industry. Vulnerable to reactive attack by major competitors Lack of infrastructure in rural areas could constrain investment. High volume/low cost market is intensely competitive.

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ANALYSIS OF FINANCIAL STATEMENT (HDFC BANK)

Mar '11 Rs Mar '10Rs, Mar '09 Rs Mar '08 Rs

Mar '07 Rs Cr.

.Cr Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Init. Contribution Settler Preference Share Application 0 Money Employee Stock Opiton Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Minority Interest Policy Holders Funds Group Share in Joint Venture 0 25,120.83 0 25,586.06 208,287.21 14,650.44 222,937.65 121.66 0 0 465.23 465.23 0 0 0

Cr.

Cr.

Cr,

457.74 457.74 0 0 0

425.38 425.38 400.92 0 0

354.43 354.43 0 0 0

319.39 319.39 0 0 0

2.91 21,158.15 0 21,615.89 167,297.78 13,171.80 180,469.58 75.89 0 0

5.49 14,262.74 0 15,089.04 142,644.80 2,775.84 145,420.64 43.35 0 0

0 11,180.72 0 11,535.15 100,631.38 4,478.86 105,110.24 36.92 0 0

0 6,150.98 0 6,470.37 68,264.27 2,815.39 71,079.66 28.61 0 0

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Other Liabilities & Provisions Total Liabilities

29,317.57 277,841.28

20,783.21 222,868.68

22,844.24 183,353.92

16,510.76 133,156.15

13,729.61 91,279.64

Mar '11 Rs Mar '10Rs, Mar '09 Rs Mar '08 Rs

Mar '07 Rs Cr.

.Cr Assets Cash & Balances with RBI Balance with Banks, Money at 4,737.39 Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Minority Interest Group Share in Joint Venture Total Assets 160,831.42 70,276.67 5,328.86 3,127.91 2,200.95 0 13,626.33 0 0 276,773.65 25,100.89

Cr.

Cr.

Cr,

15,483.31

13,527.22

12,553.18

5,075.25

14,594.88

4,009.94

2,274.80

3,998.18

126,162.73 58,508.28 4,777.65 2,628.59 2,149.06 0 5,205.07 0 0 222,103.33

99,027.37 58,715.15 4,019.68 2,287.40 1,732.28 0 5,528.89 0 0 182,540.85

63,426.90 49,288.01 2,437.58 1,241.29 1,196.29 0 4,453.89 0 0 133,193.07

46,944.78 30,567.04 1,959.68 972.15 987.53 0 3,735.47 0 0 91,308.25

Contingent Liabilities Bills for collection Book Value (Rs)

559,718.86 28,869.10 549.97

466,309.73 20,940.13 472.23

396,639.98 17,939.62 345.29

208,498.36 17,092.85 325.45

131,854.35 7,211.88 202.59

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LEARNING EXPERIENCE

The final project of the vtu curriculum gave me a good opportunity to learn many things. The project which was concentrated in finding the stability and performance of HDFC funds. The organization study helps me in understanding how organization operates its day to day operations. The co-operation between the employees, which reflected the shared value of the company which one of the s in the McKenseys 7s. The business strategy of the company which one should need to enhance the existing business and start operation in new markets. The organization structure of the company premises and gave me opportunities for the market exposure also. The staffs of the company have co-operative nature and help each others in the work. The administration style of the company is autocratic which follows the mangers rules all the time. Manger takes the most of the business which are executed by the staff.the company has many schemes to train the employees. The employees are been trained time to time in order to meet the changing market conditions. Over all the experience gained in the organizational study helped me to understand the corporate knowledge. The project has concerned with the return stability in the banking securities. The possible loss for the investors in trading was found by finding the comparing with benchmark return. So the experience gained at the HDFC BANK is remarkable.

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GENERAL INTRODUCTION
HDFC (Housing Development Finance Corporation Limited) is one of the dominant players in the Indian mutual fund space. HDFC was incorporated in 1977 as the first specialized mortgage company in India. HDFC Mutual Funds are handled by HDFC Asset Management Company Limited. HDFC Asset Management Company was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on July 3, 2000. The company also provides portfolio management / advisory services 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 Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Back bay Reclamation, Church gate, Mumbai - 400 020. In terms of 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. Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of its overall strategy, had decided to divest its Asset Management business in India. The AMC had entered into an agreement with ZIC to acquire the said business, subject to necessary regulatory approvals. On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual Fund have migrated to HDFC Mutual Fund on June 19, 2003.The AMC is managing 28 openended schemes of the Mutual Fund .

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The AMC is also managing 7 closed ended Schemes of the Mutual Fund. The AMC is also providing portfolio management / advisory services and such activities are not in conflict with the activities of the Mutual Fund. The AMC has renewed its registration from SEBI vide Registration No. - PM / INP000000506 dated December 21, 2009 to act as a Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is valid from January 1,2010 to December 31,2012.

Performance Measures of Mutual Funds

Mutual Fund industry today, with about 34 players and more than five hundred schemes, is one of the most preferred investment avenues in India. However, with a plethora of schemes to choose from, the retail investor faces problems in selecting funds. Factors such as investment strategy and management style are qualitative, but the funds record is an important indicator too. Though past performance alone cannot be indicative of future performance, it is, frankly, the only quantitative way to judge how good a fund is at present. Therefore, there is a need to correctly assess the past performance of different mutual funds. Worldwide, good mutual fund companies over are known by their AMCs and this fame is directly linked to their superior stock selection skills. For mutual funds to grow, AMCs must be held accountable for their selection of stocks. In other words, there must be some performance indicator that will reveal the quality of stock selection of various AMCs. Return alone should not be considered as the basis of measurement of the performance of a mutual fund scheme, it should also include the risk taken by the fund manager because different funds will have different levels
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of risk attached to them. Risk associated with a fund, in a general, can be defined as variability or fluctuations in the returns generated by it. The higher the fluctuations in the returns of a fund during a given period, higher will be the risk associated with it. These fluctuations in the returns generated by a fund are resultant of two guiding forces. First, general market fluctuations, which affect all the securities present in the market, called market risk or systematic risk and second, fluctuations due to specific securities present in the portfolio of the fund, called unsystematic risk. The Total Risk of a given fund is sum of these two and is measured in terms of standard deviation of returns of the fund. Systematic risk, on the other hand, is measured in terms of Beta, which
represents fluctuations in the NAV of the fund vis--vis market. The more responsive the NAV of a[20] mutual fund is to the changes in the market; higher will be its beta. Beta is calculated by relating the returns on a mutual fund with the returns in the market. While unsystematic risk can be diversified through investments in a number of instruments, systematic risk cannot. By using the risk return relationship, we try to assess the competitive strength of the mutual funds vis--vis one another

in a better way. In order to determine the risk-adjusted returns of investment portfolios, several eminent authors have worked since 1960s to develop composite performance indices to evaluate a portfolio by comparing alternative portfolios within a particular risk class.

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STATEMENT OF PROBLEM

The investors always like to purchase a combination of funds that provides the highest return and lowest risk. The investor wishes to maintain a satisfactory reward to risk ratio .Traditionally more attention are paid to the return aspect of the funds but now a days risk has received increased attention.

OBJECTIVES OF STUDY
To study the nature of portfolio management in HDFC Bank To study the performance of mutual funds in hdfc bank To study of various mutual funds plans to their investors To analyze NAV and market associated with various funds in HDFC

SCOPE OF THE STUDY

The mutual funds plan in HDFC Bank offers unique option of combining the guaranteed return to the investors, with the attractive prospects of investing in funds. As per this fund plan the investors can choose among the different investment funds to invest their money, giving the opportunity have direct stake in the performance of the financial market. Thus HDFC mutual fund plans are of prime importance and there for its necessary to analyze the risk and return also associated with the plan to have a better investment.

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METHODOLOGY
The study involves collection of data through direct interaction with professionals academicians and other officials.

LIMITATIONS OF THE STUDY

The study is confines to mutual funds in HDFC bank ltd ,namely HDFC GROWTH FUND HDFC EQUITY FUND HDFC CAPITAL BUILDER HDFC CORE & SATELITE FUND HDFC PREMIER MULTI-CAP FUND HDFC MID-CAP OPPURTUNITIES FUND HDFC LONG TERM EQUITY FUND HDFC INFRASTRUCTURE FUND HDFC ABITRGE FUND HDFC BALANCED FUND HDFC PRUDENCE FUND HDFC LONG TERM ADVANTAGE FUND HDFC TAXSAVER HDFC INDEX FUND HDFC MF MONTHLY INCOME PLAN The performance of December 2011,January and February 2012 have been analyzed for interpreting of various funds, due to time constraint the above three months data have been taken for analyze and hence the result cannot be generalize
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DATA ANALYSIS AND INTERPRETATION Schemes Available To Perform Funds

All the funds are peforming well and good, with the inbuild of supportive schemes are available in all the funds like: debt/ income fund ,income fund, liquid funds, exchange traded funds, quarterly interval fund, childrens gift fund, fund of fund scheme All the hdfc mutual funds are shows performance based on supprtive schems only.all the funds are related to maximum level of NAV and the risk level come less because the supportive schemes are secure and retuns also is high and these funds are very atrractive to the investors . . HDFC Bank is providing value for money products and good safe returns on customer investments that has created a strong relation with the investors

HDFC GROWTH FUND

To generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. The scheme is an open ended equity scheme that invests predominantly in equity and equity related instruments the folowing are the five basic principles that serve as the fondation for this investement approach :

1) Focus on the long term 2) Investements confer propotionate ownership 3) Maitain a margin of safety 4) Maitain a balanced outook on the market 5) Disciplin approach to selling
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PERFOMANCE LEVEL IN YEAR WICE

RETURNS %^ 18.04 12.27 16.35 27.95 22.87 BENCHMARK RETURNS%# 10.94 7.52 11.5 18.34 14.41

PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEARS(1826 DAYS) LAST TEN YEAR(3653 DAYS) SINCE INSPECTION(3853 DAYS)

yearly perfomance of fund

30 25 20 15 10 5 0

RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above table it can be analiyzed that the performance of during last ten years showing that actual return is higher than benchmark return. After that there was a big decrese In return . Last one year depicts that the actual return is double than the benchmark return.
INTERPRETATION:

During the period of ten year the investaers earned the maximum return and this fund will be the good growin fund in the market.

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HDFC EQUITY FUND

To achieve capital appreciation, The scheme is an open ended equity scheme that invests predominantly in equity and equity related instruments.the scheme may seek invest oppurtunity in growth companies selected under this portfolio would as far as practicable consist of medium to large sized companies which : a) Are likely to achive above average growth than the industry b) Enjoy distinct competitve adventages c) Have superior financial strengths.
PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEARS(1826 DAYS) LAST TEN YEAR(3653 DAYS) RETURNS %^ 19.89 19.55 17.37 32.90 27.88 22.84 BENCHMARK RETURNS%# 7.26 6.54 9.71 19.87 13.4 10.06

LAST 15 YEAR (5480 DAYS)

SINCE INCEPCTION(5933 DAYS)

35 30 25 20 15 10 5 0

RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above figure it can be analiyzed that the performance of during last fifteen years showing that actual return is higher than benchmark return.The figure showing last five year is on an increasing trend.
INTERPRETATION:

During the period of ten year the investers earned the maximum return and this fund will be the good growin fund in the market.
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HDFC TOP 200 FUND To generate long term capital appreciation from a portfolioof equity and equty linked instruments primarily drawn from the companies in BSE 200 index. The scheme is an open ended equity scheme that invests predominantly in equity and equity related instruments.the net assets of the schemessportfolio consist f equity and equity-linked instruments primily drawn from the companies in BSE 200 index .A part of assets of the Scheme may be invested in debt securities and money market instruments.

PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEARS(1826 DAYS) LAST TEN YEAR(3653 DAYS) SINCE INCEPTION(5284 DAYS)

RETURNS %$$^ 17.14 1784 17.45 31.63 25.32

BENCHMARK RETURNS%# 8.15 7.17 10.98 20.54 15.02

30 25 20 15 10 5 0

RETURNS BENCHMARK RETURNS

ANALYSIS:

From the above figure shows that the performance of during last ten years shows varriation from year to year.The fluctuations are having very high differences from prevoius.
INTERPRETATION:

During the period of ten year the investers earned the constant return and but this fund not safe to invest because it would not give expected return .

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HDFC CAPITAL BUILDER To achieve capital apreciation in the long term, . The scheme is an open ended equity scheme that invests predominantly in equity and equity related instruments.the net assets of the schems portfolio consists of strong compamys at prices which are quoting below fair value, in the oppenion of the fund maneger. A part of the net assets of thr Schemes may be invested in debt securities and money market instruments.
PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEARS(1826 DAYS) LAST TEN YEAR(3653 DAYS) LAST FIFTIEN YEARS(5480 DAYS) SINCE INCEPCTION(6267 DAYS) RETURNS %^ 14.94 13.73 13.17 27.01 19.54 15.09 BENCHMARK RETURNS%# 7.2 6.54 9.71 19.87 13.4 8.94

30 25 20 15 10 5 0

RETURNS %$$^ BENCHMARK RETURNS%#

ANALYSIS:

From the above figure it can be analiyzed that starting to last ten it gave a increasing trend in return then reaching to last five year the return is halfof the previous.then after that again shows an increasing trend.
INTERPRETATION:

The having a cyclical nature that depicts in the figure.so the investor should understand the previous years return.
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HDFC CORE & SATELITE FUND To generate capital appreciation through equity invest in companies whose shares are quoting at prices below their true value. The scheme is an open ended equity scheme that invests predominantly in equity and equity related instruments,Comprising of core group of companyes and satlite group of companys. Core group will comparice of well established and predominantly large capital companyes. The satlite will comparice of predominantly smallmid capital companies that offer higher potential riterns with higher risk. A part of net assets of thr scheme may be invest debt securities and money market instruments.
PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEARS(1826 DAYS) SINCE INCEPCTION(2386 DAYS)
30 25 20 15 10 5 0

RETURNS %^ 13.53 14.08 11.27 23.92

BENCHMARK RETURNS%# 8.15 7.17 10.98 19.94

RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

The above figure indicating that the starting return paed to the investors was very high then next five year saw a decrease in return after that ther was a slight increase again next year slight decreasing in return.
INTERPRETATION:

During the last five years results says that the return was lower than beginning so the fund were not as good as expected.
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HDFC PREMIER MULTI-CAP FUND The genaratecapital appreciation in the long term through equity investment by investing in divercified portfolio of mid-cap or large cap bluechip companys, the scheme will invest predominantly in preemior or bluechip company, the scheme will use the minimum of thr thirty five % of the portfolio each in large-caps and mid-caps, the balance will be SWING portfolio that can invest in either mid or large capital companyes based on their relative valuation,
RETURNS PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEARS(1826 DAYS) SINCE INCEPCTION(2185 DAYS) %^ 12.26 13.52 11.59 19.46 BENCHMARK RETURNS%# 7.26 6.54 9.71 17

25 20 15 10 5 0 RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

The above figure indicats that the starting return paid to the investors was very high which was reduced.The next five year saw a big decrease in return after that there was a slight increase again next year slight decreasing in return.
INTERPRETATION:

During the last five years results says that the return was lower than beginning so the fund were not as good as expected.

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HDFC MID-CAP OPPURTUNITIES FUND

The objective of the scheme is to generate long term capital appreciation portfolio that is substantianlly consulted of equty and equety relative securities of small and mid cap comapnys, the scheme shall be mainly invested in combined portfolio of equity and equity related securities of small and mid cap companyes, the fund maneger shall also invested in equty and equty related securities to achive optimal protfolio construction,

PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) SINCE INCPECTION(1375 DAYS)

RETURNS %^ 15.33 16.74 11.55

BENCHMARK RETURNS%# 4.35 8.81 8.92

18 16 14 12 10 8 6 4 2 0 LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 SINCE INCEPCTION(1375 DAYS) DAYS)

RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above depicting that the fund have given very increasing trend return from beginning result.last one year return having slite dicreasing then also it shows a possitive nature.
INTERPRETATION:

During the period of ten year the investers earned the maximum return and this fund will be the good growin fund in the market.
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HDFC LONG TERM EQUITY FUND To acheive long capital appreciation, The scheme is an open ended equity scheme that invests predominantly in equity and equity related instruments,the scheme shall also invest a small prtion of net assets in fixed income securities and money market instruments. The aim wil be to build a portfolio that adequately reflects a cross section of the growth areas of the economy from time to time .while the portfolio focuses primerily on a buy and hold strategy at most times ,it will balance the same with a rational approach to selling when the valuation become too demanding even in the face of reasonable growth prospectus in the long run.
BENCHMARK PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEARS(1826 DAYS) SINCE INCEPCTION(1875 DAYS)
20 15 10 5 0 RETURNS %^ BENCHMARK RETURNS%#

RETURNS %^ 18.48 11.89 9.62 10.53

RETURNS%# 11.14 7.21 11.38 13.62

ANALYSIS:

From the above table it can be analiyzed that the performance of during last fifteen years showing that actual return is higher than benchmark return.The figure showing last five year increasing trend.
INTERPRETATION:

During the period of ten year the investers earned the maximum return and this fund will be the good growin fund in the market.
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HDFC INFRASTRUCTURE FUND

To seek longterm capital appreceation by inveting predominantly in equity related securities of companies engaged in or expected to benefit from growth and development of infrastructure. The scheme shall invest in the indicative list of sectors/industries. The scheme shall invest across the above mentioned sectors or other areas of infrastructure as idenified by the fund manager. The fund manager may add such other sector/group of industries, which broadly satisfy the category of services, and infrastructure industries
RETURNS PERIOD LAST ONE YEAR(365 DAYS) LAST DAYS) SINCE INCEPCTION (1116 DAYS) 5.85 5.5 THREE YEAR(1095 8.35 6.54 %^ 6.31 BENCHMARK RETURNS%# 7.26

9 8 7 6 5 4 3 2 1 0 LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) SINCE INCEPCTION(1116 DAYS)

RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above table it can be analiyzed that the performance of during last three years showing that actual return is higher than benchmark return.
INTERPRETATION:

The increasing trend in the investement in equity capital and infra strucuture is because of the rapid growth of thesee two sectors in Indian economy .
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HDFC ARBITRGE FUND

To generate income through arbitrage opportunities between cash and derivative market and arbitrage opportunities with in the derivative segment and by development of surplus cash in dept securities and money market instruments. The scheme may adopt simple derivative strategies, which would be to take offsetting positions on various markets simultaneously. In the absence of adiquate arbitrage opportunities, the scheme may invest in short term dept securiities or money market securities or money market instruments.
BENCHMARK PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095DAYS) SINCE INCEP: (1255DAYS) RETURNS %^ 7.8 6.48 6.89 RETURNS%# 6.22 6.23 6.28

9 8 7 6 5 4 3 2 1 0 LAST ONE YEAR(365 LAST THREE YEAR(1095 DAYS) DAYS) SINCE INCEPCTION(1255 DAYS)

RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above table it can be analiyzed that the performance of during last three years showing that actual return is higher than benchmark return.
INTERPRETATION:

The arbitrage fund is inveting in short term dept securiities or money market securities or money market instruments.so it having a high rate of return.
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HDFC BALANCED FUND

To generate capital appreciation along with current income from a combined portfolio of equity and equity related and debt and money market instruments. The scheme is an open ended balanced scheme. The net assets of the scheme shall be invested in a combined portfolio of equity and equity related instruments: debt securities and money instruments in the range of 60:40 respectively. The exact portfolio mix will be a function of interest rates, equity valuations, reserves position, and risk taking capacity of the portfolio.
PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEAR (1826 DAYS) LAST TEN YEAR (3653 DAYS) SINCE INCEPTION (3853 DAYS ) RETURNS %^ 16.17 16.87 13.68 19.47 17.49 BENCHMARK RETURNS%# 9.37 8.13 10.59 NA NA

25 20 15 10 5 0 LAST ONE YEAR(365 DAYS) LAST THREE LAST FIVE YEAR(1095 YEAR (1826 DAYS) DAYS) LAST TEN SINCE YEAR (3653 INCEPTION DAYS) (3853 DAYS ) RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above table it can be analiyzed that the performance of during last ten years showing that fund has given high rate of return.
INTERPRETATION:

During the period of ten year the investors earned the maximum return and this fund will be the good growin fund in the market.
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HDFC PRUDENCE FUND

To provide periodic returns and capital appreciation over a long period of time from a judicious mix of equity and debt investments with an aim to prevent / minimize any capital erosion. The Scheme is an open ended balanced scheme. This Scheme provides a judicious mix of equity and debt investments. The net assets of the Scheme shall be invested in equity and equity related instruments between the range of 40 -75% and in debt securities and money market instruments between the range of 25- 60%.
PERIOD LAST ONE YEAR(365 DAYS) LAST 3 YEAR(1095 DAYS) LAST FIVE YEAR (1826 DAYS) LAST TEN YEAR (3653 DAYS) LAST 15 YEAR(5480 DAYS) SINCE INCEP: (6267 DAYS) RETURNS %^ 17.49 18.75 17.53 28.48 24.75 21.33 BENCHMARK RETURNS%# 9.37 8.13 10.59 NA NA NA

30 25 20 15 10 5 0 LAST ONE LAST LAST FIVE LAST TEN LAST SINCE YEAR(365 THREE YEAR (1826 YEAR (3653 FIFTEEN INCEPTION DAYS) YEAR(1095 DAYS) DAYS) YEAR(5480 (6267 DAYS DAYS) DAYS) )

RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS

From the above table it can be analiyzed that the performance of last fifteen year was high and when we started benchmarking,the acual was more than the benchmarking.
INTERPRETATION:

The fund was firstly intodused by HDFC and it was doing well in the market .when the compititors entered in provide this fund we started putting bench mark then also we got possitive results.

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HDFC LONG TERM ADVANTAGE FUND

To generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. This Scheme is launched as an open ended Equity Linked Saving Schemes having a lock in period of 3 years in accordance with the Equity Linked Saving Scheme, 1992 as amended in 1998. The net assets of the scheme will be invested predom inantly in equity and equity related instruments. A part of the net assets of the Scheme may be invested in debt securities and money market instruments. Investment made in this Scheme is eligible for tax benefit under section 80 C of the Income Tax Act, 1961.
BENCHMARK PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEAR (1826 DAYS) LAST TEN YEAR (3653 DAYS) SINCE INCEPTION (3740 DAYS) RETURNS %^ 16.76 13.09 10.07 31.06 29.29 RETURNS%# 10.94 7.52 11.50 18.34 16.63

40 30 20 10 0 LAST ONE YEAR(365 DAYS) LAST THREE LAST FIVE YEAR(1095 YEAR (1826 DAYS) DAYS) LAST TEN SINCE YEAR (3653 INCEPTION DAYS) (3740 DAYS ) RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above figure shows actual return is more than the benchmark return except for the last five year.
INTERPRETATION:

During the period of ten year the investers earned the maximum return and this fund will be the good growin fund in the market.
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HDFC TAX SAVER

The Scheme is launched as an open ended Equity Linked Schemes having a lock in period of 3 years in accordance with the Equity Linked Savings Scheme ,1992 as amended in 1998. The net assets of the Scheme will be invested predom inantly in equity and equity related instruments. A part of the Scheme may be invested in debt securities and money market instruments. Investment made in the Scheme is eligible for tax benefit under section 80 C of the Income Tax Act, 1961.
BENCHMARK PERIOD LAST ONE YEAR(365 DAYS) LAST DAYS) LAST FIVE YEAR (1826 DAYS) LAST TEN YEAR (3653 DAYS) SINCE INCEPTION (5478 DAYS) THREE YEAR(1095 15.28 12.15 30.91 31.18 6.54 9.71 19.87 13.41 RETURNS %^ 13.24 RETURNS%# 7.26

35 30 25 20 15 10 5 0 LAST ONE LAST THREE LAST FIVE LAST TEN SINCE YEAR(365 YEAR(1095 YEAR (1826 YEAR (3653 INCEPTION DAYS) DAYS) DAYS) DAYS) (5478 DAYS )

RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above table it can be analiyzed that the performance of during last fifteen years showing that actual return is higher than benchmark return.The figure showing last five year increasing trend.
INTERPRETATION:

During the period of ten year the investors earned the maximum return and this fund will be the good growin fund in the market.
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HDFC INDEX FUND

To generate returns that are commensurate with the performance of the SENSEX , subject to tracking errors.
BENCHMARK PERIOD LAST ONE YEAR(365 DAYS) RETURNS %^ 10.46 RETURNS%# 12.14

LAST THREE YEAR(1095DAYS) LAST FIVE YEAR (1826 DAYS) SINCE INCEPTION (3179 DAYS)

5.68 8.95 20.30

8.78 13.29 25.52

30 25 20 15 10 5 0 LAST ONE LAST THREE LAST FIVE SINCE YEAR(365 YEAR(1095 YEAR (1826 INCEPTION DAYS) DAYS) DAYS) (3179 DAYS) RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above figure depicts that the actual return is always less than benchmarke return.but always maintaning a ratio with bench mark return.
INTERPRETATION:

During the period of five the fund has performed lower than benchmark then it mainataining consistancy in return,

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HDFC MF MONTHLY INCOME PLAN

The primary objective of Scheme is to generate regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long term capital appreciation by investing a portion of the Schemes assets in equity and equity related instruments.
BENCHMARK PERIOD LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095DAYS) LAST FIVE YEAR (1826 DAYS) SINCE INCEPTION (2652 DAYS) RETURNS %^ 4.84 8.05 6.54 7.63 RETURNS%# 6.17 6.82 7.41 7.09

9 8 7 6 5 4 3 2 1 0 LAST ONE YEAR(365 DAYS) LAST THREE YEAR(1095 DAYS) LAST FIVE YEAR (1826 DAYS) SINCE INCEPTION (2652 DAYS)

RETURNS %^ BENCHMARK RETURNS%#

ANALYSIS:

From the above graph it show a fluctatng trend in the actual and bench mark .
INTERPRETATION:

This fund is not giving a regular expected return , it shows fluctating trend in actual and bench mark.

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ANALYSE OF SCHEMES PERFORM IN FUNDS

LAST FIVE YEARS(1826 MARK

SCHEMES AVAILABLE TO PERFORM LAST FIVE YEARS

DAYS) BENCH

FUNDS

RETURNS%# RETURN

HDFC GROWTH FUND HDFC EQUITY FUND HDFC CAPITAL BUILDER HDFC CORE & SATELITE FUND HDFC PREMIER MULTI-CAP FUND HDFC MID-CAP OPPURTUNITIES FUND HDFC LONG TERM EQUITY FUND HDFC INFRASTRUCTURE FUND HDFC ABITRGE FUND HDFC BALANCED FUND HDFC PRUDENCE FUND

16.35 17.37 17.45 13.17 11.27 11.59 9.62 5.85 6.89 13.68 17.53

11.5 9.71 10.98 9.71 10.98 9.71 11.38 5.5 6.28 10.59 10.59 11.5 9.71 13.29 7.41 Page 53

HDFC LONG TERM ADVANTAGE FUND 10.07 HDFC TAXSAVER HDFC INDEX FUND HDFC MF MONTHLY INCOME PLAN
12.15 8.95 6.54

PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE

20

18

16

14

12

10

LAST FIVE YEARS RETURNS%# LAST FIVE YEARS(1826 DAYS) BENCH MARK RETURN

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ANALYSE OF SCHEMES PERFORM IN FUNDS

9 funds have beginning low return compared with market return from the past 5 year ,which shows that investor who have invested in these funds have always behave the positive side getting good return. On the other hand, 6 fund have been giving either lesser or almost the same return to the market. So the investors have not been in very positive parties, they could have earned better if they invested in other funds.

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FINDINGS AND SUGGESTION

1. Company provides the customers with fourteen different types of funds. 2. The company gives most preference to the HDFC Monthly income plan because all customers can afford these funds. 3. HDFC arbitrage fund gives only quarterly options plan. 4. HDFC index fund is offers plans like SENSEX, SENSEX PLUS PLAN ,NIFTY PLAN. 5. In the HDFC index fund they do not offer any payout option. 6. The HDFC MF Monthly Income plan offers the best fund to customers i.e. short term and long term.

The world of investments too has several ground rules meant for investors who are novices in their own right and wish to enter the myriad world of investments. These come in handy for there is every possibility of losing what one has if due care is not taken.

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SUGGESTIONS 1. One should identify the degree of risk bearing capacity one has and also clearly state the expectations from the investments. Irrational expectations will only bring pain.

2. In order to avoid any confusion it is better to go through the literature such as offer document and fact sheets that mutual fund companies provide on their funds. 3. Don't rush in picking funds, think first: one first has to decide what he wants the money for and it is this investment goal that should be the guiding light for all investments done. It is thus important to know the risks associated with the fund and align it with the quantum of risk one is willing to take. 4.One should take a look at the portfolio of the funds for the purpose. Excessive exposure to any specific sector should be avoided, as it will only add to the risk of the entire portfolio. Mutual funds invest with a certain ideology such as the "Value Principle" or "Growth Philosophy. Both have their share of critics but both philosophies work for investors of different kinds. 5. Invest. Don t speculate: A common investor is limited in the degree of risk that he is willing to take. It is thus of key importance that there is thought given to the process of investment and to the time horizon of the intended investment. One should abstain from speculating which in other words would mean getting out of one fund and investing in another with the intention of making quick money. One would do well to remember that nobody can perfectly time the market so staying invested is the best option unless there are compelling reasons to exit. 5. Don t put all the eggs in one basket: This old age adage is of utmost importance. No matter what the risk profile of a person is, it is always advisable to diversify the risks associated. So
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putting one s money in different asset classes is generally the best option as it averages the risks in each category. Thus, even investors of equity should be judicious and invest some portion of the investment in debt. Diversification even in any particular asset class (such as equity, debt) is good. Not all fund managers have the same acumen of fund management and with identification of the best man being a tough task, it is good to place money in the hands of several fund managers. This might reduce the maximum return possible, but will also reduce the risks. 6. Be regular: Investing should be a habit and not an exercise undertaken at one s wishes, if one has to really benefit from them. As we said earlier, since it is extremely difficult to know when to enter or exit the market, it is important to beat the market by being systematic. 7. Do your homework: It is important for all investors to research the avenues available to them irrespective of the investor category they belong to. This is important because an informed investor is in a better decision to make right decisions. Having identified the risks associated with the investment is important and so one should try to know all aspects associated with it. Asking the intermediaries is one of the ways to take care of the problem. 8. Find the right funds: Finding funds that do not charge much fees is of importance, as the fee charged ultimately goes from the pocket of the investor. This is even more important for debt funds as the returns from these funds are not much. Funds that charge more will reduce the yield to the investor. 9. Keep track of your investments: Finding the right fund is important but even more important is to keep track of the way they are performing in the market. If the market is beginning to enter a bearish phase, then investors of equity too will benefit by switching to debt funds as the losses can be minimized. One can always switch back to equity if the equity market starts to show some buoyancy.
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10. Know when to sell your mutual funds: Knowing when to exit a fund too is of utmost importance. One should book profits immediately when enough has been earned i.e. the initial expectation from the fund has been met with. Other factors like non-performance, hike in fee charged and change in any basic attribute of the fund etc. are some of the reasons for to exit.

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CONCLUSION

Winning with stocks means performing at least as well as a major market index over the long haul. If one can sidestep the common investor mistakes, then one has taken the first and biggest step in the right direction. Diversified stock portfolios have offered superior long term inflation protection. Equities are especially important today with people living longer and retiring early. To understand stock funds, one needs to be familiar with the characteristics of the different types of companies they hold. Portfolio managers have done a fairly good job in generating positive returns. It may lead to gain investors confidence. Thus over all good performance of the funds is assign of development in new era in capital market. On the basis of the analysis the performance of the schemes during the study period can be concluded to be good. Those who want to eliminate the risk element but still want to reap a better then it would be advisable to go for debt or arbitrage schemes which ensures both safety and returns. So the future of mutual funds in India is bright, because it meets investor s needs perfectly. This will give boost to Indian investors and will attract foreign investors also. It will lead to the growth of strong institutional framework that can support the capital markets in the long run. HDFC mutual funds provide the secured investments of long time savings but their structure differently, the HDFC bank is used to invest their investors their high performance mutual funds. The fund holders the value of the NAV is determined by the total value of all the investments made by the funds divide by the number of units which the investor got. The HDFC bank ltd will offers a various types of funds it which can be performed based on the
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company performance. And the investors have a opportunity to choose the different schemes is available based on the investors financial background. HDFC Bank is providing value for money products and good safe returns on customer investments that has created a strong relation with the investors across the country.

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BIBLIOGRAPHY

Security analysis & Portfolio management by Punithavathy Pandian, Vikas Publishing House Pvt Ltd

Portfolio management by S. Kevin Research methodology, revised edition, C.R Kothari. Wishwa Prakashan Publishing, New Delhi,1990

Growth stocks by N.J Yasaswy Investment analysis by V K Bhalla

REPORTS/ARTICLES REFFERED: Annual report of HDFC BANK 2011

WIBLIOGRAPHY

www.hdfcbank.com

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