2009- 11

Financial Planning&
MONEY MANAGEMENT THROUGH
Wealth
VARIOUS FINANCIAL PRODUCT
Management

Submitted To:- Ms. Smita Nahata Submitted By:-

Pallavi Gupta
Priyaranjan
Priyanka
Rishabh Wadhawa
Sandeep Takkar
Pradeep Singh
 Index

1. INTRODUCTION
2. MUTUAL FUND MEANING
3. FUND NAME
4. SCHEME NAME
5. OBJECTIVE
6. AMC
7. TYPE
8. CATOGORY
9. LAUNCH DATE
10.FUND MANAGER
11.FUND MANAGER OVERVIEW
12.NET ASSETS
13.NAV DETAILS
14.PERFORMANCE
15.LATEST PAYOUT
16.INVESTMENT DETAILS
17.COMPARISON OF FUND
18.PORTFOLIO CHARACTERSISTICS
19.RISK ANALYSIS
20.ASSET ALLOCATION
21.MARKET CAPITALISATION
22.TOP HOLDINGS

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 Mutual Fund

Introduction:-

If you are considering to invest in stock market and are afraid of its some what unpredictable
fluctuations, you can definitely consider investing in mutual funds. Some of the reasons that go
strongly in favor of mutual funds are their lowest risk factors owing to diversification of assets in
to various sectors and scrips or instruments within. As with the risk, the costs of unit share too
are spread across making them affordable by almost any one. If you are looking at open end
funds you can always purchase them from the company at the NAV minus some loads or
expenses. The closed end funds give you the flexibility of independent stocks while combining
the best of the features of mutual funds.

Fund managers allocate available funds in a specified proportion among various instruments of
investments. Consider a fund being well diversified across the spectrum of exchange listed
stocks and bonds which yield a guaranteed return in addition to being invested in money markets
and real estates. While bonds and money market investments provide a low but steady return,
other instruments are of high yielding character in a short period. The higher risk of high
yielding portfolio is compensated for by the investments in bonds in events of adverse market
behavior.

Mutual Fund:-

A mutual fund is a professionally managed type of collective investment scheme that pools

money from many investors and invests typically in investment securities (stocks, bonds, short-
term money market instruments, other mutual funds, other securities, and/or commodities such
as precious metals). The mutual fund will have a fund manager that trades (buys and sells) the
fund's investments in accordance with the fund's investment objective. In the U.S., a fund
registered with the Securities and Exchange Commission (SEC) under both SEC and Internal
Revenue Service (IRS) rules must distribute nearly all of its net income and net realized gains
from the sale of securities (if any) to its investors at least annually. Most funds are overseen by

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a board of directors or trustees (if the U.S. fund is organized as a trust as they commonly are)
which is charged with ensuring the fund is managed appropriately by its investment adviser and
other service organizations and vendors, all in the best interests of the fund's investors.

Fund Name:- HDFC Mutual Fund

Scheme Name :- HDFC Top 200 Mutual Fund

Objectives:-

It is an open-ended equity fund. The objective is to generate long-term capital appreciation from
a portfolio of equity and equity-linked instruments primarily drawn from companies in BSE 200
index.

AMC :- HDFC Asset Management Company Ltd

Type :- Open

Category :- Equity – Diversified

Launch Date :- 19-Aug-96

Fund Manager :- Prashant Jain

Fund Manager Overview:-

 The fund maintains a diversified portfolio of predominantly large cap stocks.

 It invests in fundamentally strong companies for longer horizon. It does not take high
cash exposure.
 The fund manager continues to remain positive on the markets over the longer term
as the earnings growth outlook is positive.
 The foreign fund inflows are expected to remain strong as India will show good GDP

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 growth. Currently, there is no major valuation gap across sectors and stocks.
 The credit growth is expected to pick up as the infrastructure lending moves up.
 The fund remains overweight on Banking & Finance sector on the back of expected
credit growth.
 The fund has out-performed BSE 200 by a huge margin since inception on the back of
fundamental approach of investment.

Net Assets:(Rs. cr):- The company has net assets value of Rs.9,357.91 crore.

NAV Details
NAV Date : 11-Nov-10
NAV [Rs.]: 55.1

Buy/Resale Price [Rs.] : 54.56

Sell/Repurchase Price
55.11
[Rs.] :
Entry Load % : NIL
In respect of each purchase / switch-in of Units less than
Crore in value, an Exit
Load of 1% is payable if units are redeemed / switched-out within
Exit Load % :
1 year from the date of allotment. üo In respect of each purchase /
switch-in of Units equal to or greater than Rs.
Exit Load is payable.

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Performance(%) * returns above 1 yr. are annualized

Since
  1w 1m 3m 6m 1y 3y 5y
INC

Scheme Returns [1.1] 2.1 15.4 27.2 31.4 14.6 27.1 26.8

Category Avg [0.4] 1.5 12.7 21.7 30.6 5.2 19.4 20.2

Category Best 2.7 6.1 29.1 34.7 77.8 22.2 31.7 89.5

Category Worst [2.3] [2.2] 3.4 3.7 [0.8] [21.2] [0.4] [31.6]

Return on the HDFC Top 200 Fund is good so we can invest in this mutual fund. If we want
good return so we have to invest it for at least 1 year. If we consider the payout ratio we came to
know that 40% is the payout ratio for HDFC Top 200 Fund. Which means this mutual fund
result in providing good rate of return in normal period.

Latest Payouts
  Dividends Bonus
Ratio 40 % NA
Date 06-Mar-10 NA

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Investment Details
Tax Benefits : NA

Min. Investment(Rs.) : 5,000.00

Increm.Investment(Rs.) : 100.00

Comparison of Funds
Cotegory:- Equity diversified

Category:- HDFC Top- 200 Fund V/s Birla Sun Life Equity Fund (G)

Scheme Name Birla Sun Life Equity Fund (G) HDFC Top 200 Fund (G)
Fund Class Equity – Diversified Equity - Diversified
Inception Date 27-Aug-98 03-Sep-96
Since INC(%) 32.2 24.8
NAV Date 11-Nov-10 11-Nov-10
NAV(Rs.) 301.3 233.1
1 WEEK(%) [0.7] [1.1]
1 MONTH(%) 0.9 2.1
3 MONTH(%) 12.1 15.4
6 MONTH(%) 21.3 27.2
1 YEAR(%) 26.8 31.4
Commenting on this, we can make assumption that Net Assts Value for top 200 HDFC fund are
better in comparison to Birla sun life equity fund. Investment in HDFC fund for at least one
month can yield better returns for sure. So Investors should go for top 200 HDFC funds which
can give them better return on their investments.

Portfolio Characteristics

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Portfolio P/E Ratio:- P/E is short for the ratio of a company's share price to its per-share
earnings. As the name implies, to calculate the P/E, you simply take the current stock price of a
company and divide by its earnings per share (EPS).

Price Earnings Ratio = Market price per equity share / Earnings per share = 24.39

Portfolio P/B Ratio:- A ratio used to compare a stock's market value to its book value. It is
calculated by dividing the current closing price of the stock by the latest quarter's book value per
share. 

Also known as the "price-equity ratio". 

Calculated as:

= 5.43

Dividend Yield:- Share holders are real owners of a company and they are interested in real
sense in the earnings distributed and paid to them as dividend. Therefore, dividend yield ratio is
calculated to evaluate the relationship between dividends per share paid and the market value of
the shares.

Dividend Yield Ratio = Dividend Per Share / Market Value Per Share = 1.10

Avg. Market Cap (Cr.):- 79611

Risk Analysis
Beta:- A measure of an investment's volatility, relative to an appropriate asset class.

beta   =   [ Cov(r, Km) ] / [ StdDev(Km) ]2 = 0.91

where

r is the return rate of the investment; 

Km is the return rate of the asset class.

Standard Deviation:- Standard deviation is a statistical measure of spread or variability.The

standard deviation is the root mean square (RMS) deviation of the values from their arithmetic mean.

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 = 8.75

Asset Allocation:-
The money invested by investors in HDFC mutual fund, is taken good care of by HDFC fund
managers. They invest that money in different proportions in different funds so that better returns
can be accumulated.

Fund managers put 97.41% of money in equity market, 0.00% in debt market and 2.59% in cash.

Equity:- 97.41
Debt:- 0.00
Cash:- 2.59

Market Capitalization:-
Large Cap:- 88.14
Mid Cap:- 6.41
Small Cap:- 2.86

Top Holdings as on April 30, 2010

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Company %
State Bank of India :- 6.51
Infosys Technologies :- 5.71
ICICI Bank:- 5.04
Bank of Baroda:- 4.09
Larsen & Toubro:- 3.89
Total :- 25.24
Sector %
Banks & Finance :- 26.76
Oil & Gas, Petroleum & Refinery:- 12.58
IT:- 8.78
Pharma:- 8.19
Power:- 7.46
Total :- 63.76

The investors money is managed by professional fund managers in HDFC, who in turn put these
money into very reputed and profitable companies like State Bank of India, Infosys
Technologies, ICICI Bank, Bank of Baroda and Larsen and Torbo, etc.

Apart from making such allotments, HDFC also puts oney only in such sectors who have very
least impact of recession and any kind of financial problems like banks ank finance, oil and gas,
petroleum, refinery, IT, pharma and power etc. These are the fastest growing sectors of the
economy.

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