Comparison B/W ICICI &

HDFC Mutual Fund Companies

Presented By
Ameeta Asnani
 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 agreement.
• Some funds, for example, seek to generate income
on a regular basis others seek to preserve an investor's
money.
• Mutual funds are investment companies regulated
by the Investment Company Act of 1940.
• Related: open-end fund, closed-end fund.
 Concept of mutual funds
•  A mutual fund is 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 :-

• 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.
 How Mutual Fund works?
A vehicle for investing in portfolio of stocks and
bonds
 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 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.
 Cont………..

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).
Types of Mutual Funds
 Advantages of Mutual Funds

• Diversification.
• Professional Management.
• Liquidity (mainly in case of opened mutual funds).
• Regulatory.
• Convenience.
• Low cost .
• Reduction of transaction cost.
• Tax relief. 
 Drawbacks of Mutual fund
 
  
• No guarantees.
• Fees & Commission.
• Market risk.
• Management Risk.
 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.

• 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.
 Products and Schemes of HDFC mutual fund

 
• Equity funds.

• Balanced funds.

• Debt funds.

• Liquid funds.
 ICICI Prudential 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 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
 Products and Schemes of ICICI mutual fund
 

• Equity funds.

• Balanced funds.

• Debt funds.

• Liquid funds.

• Children’s gift fund

 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).
• Canara 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.
 
 Research Methodology
Data collection Design:
 Primary Sources – I have used questionnaire .
 Secondary sources – I had collected my secondary data
from websites
Sampling

 Sample Size - 10

1. Do you invest in mutual fund?
Chart Title

100
90
80
70
60
50
40
30
20
10
0
YES NO
 2. With which company do you have
invested in mutual funds?
• HDFC Chart Title
• ICICI 6
• Reliance 5
4
• SBI
3
• LIC 2
• Kotak Mahindra
1
• Others 0
  F C I CI nce S BI
LI
C
dra ers
D IC ia in th
H el ah O
R M
t ak
Ko
 3. What is your age?
5
4.5
4
.
3.5
3  
2.5
2
1.5
1
0.5
0
 
-25 -35 -45 45
•1
5
•2
5
•3
5
han
t
e
or
M
 4. What is your income?
(Yearly based)
Chart Title
• 1 lakh 7
6
• 2-4 lakh 5
4
• 4-5 lakh 3
2
• More than 5 1
0
k h kh k h 5
1
la la la han
4 5 t
2- 4- e
or
M
5. From where you come to know about
this
company’s mutualChart
fundTitle
schemes?

4
3.5
3
2.5
2
1.5
1
0.5
0
ers ee
ers
v es
pe loy th
i p O
lat & m
re nds y
e
& ie n
ily F r pa
m om
F a C
6. What is the time duration of your
investment? 
Chart Title

5
4
3
2
1
0
ar ar ar 4
y e ye 4y
e
han
1 2 2- t
0- 1- e
or
m
7. Are you satisfied by service of the
company’s employees / people’s
behavior?
Response

Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
8. What is your risk profile?

0
•Innovator •Moderate •Risk adverse
9. What you feel about the company
norms,
documentation & formalities?
4
3.5
3
2.5
2
1.5
1
0.5
0
•Easy •Simple •Average •Difficult
10. What you say which
provides better returns?
7

0
HDFC ICICI
 11. If you get chance to swap your
investment with either HDFC & ICICI
willChart
you?
Title
 
8
 
7
6
5
4
3
2
1
0
Yes No
 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

• Reliability

• Awareness
 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.
 Cont…………

• 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

most Powerful 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 they 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.

• ICICI also increase its investors by improving itself in

some terms.