study of consumer buying behviour towords various schemes of HDFC mutual fund

A Project report on
“A Study of Investor’s Buying Behavior towards Various Schemes of
HDFC Mutual Fund”
For partial fulfillment of the requirement
For the degree of B.B.A program
Prepared by:
Chauhan Khushbu (05)
[T.Y. B.B.A FINANCE]
Under the guidance of:
Mrs. Payal Saxena
Submitted to:
B.R.C.M College of Business Administration
Veer Narmad South Gujarat University,
Surat.
Year:
2014-2015

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A Study of investor’s buying Behavior towards various schemes of HDFC Mutual Fund
BRCM College Of Business Administration
College ceti

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ACKNOWLEDGEMENT
I (Khushbu Chauhan), take this opportunity to thank my guide Mrs. Payal Saxena who
assigned me this below mentioned project topic and help me at every step during the
preparation of the work of study “A STUDY OF INVESTOR’S BEHAVIOR TOWARDS
VARIOUS SCHEMES OF HDFC MUTUAL FUND”. I am here by, grateful to her. Writing
this report appeared to be a great experience to me. It added a lot to my knowledge while I
was working on this project. If I say that this project is one of my memorable experience in
student life.
The project report could never been accomplished without the guidance and cooperation from
my respected faculties and my training guide Kheni Hitesh (sales and distribution) at HDFC
Mutual Fund, Surat. i Sincerely thank all faculties for their suggestions and help to prepare
this project.
I am highly obliged who help me during the training period and cooperated in solving
queries. I am very grateful to my college and who have directly or indirectly help me to bring
this effort to completion.
Finally, foremost to thank all my respondent, who helped me to complete my fieldwork,
without whom this project was not possible.

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DECLARATION
I, Khushbu Chauhan , declare that this project entitled “A STUDY OF INVESTOR’S
BEHAVIOR TOWARDS VARIOUS SCHEMES OF HDFC MUTUAL FUND” is the result
of my own work carried out during December to February 2015-2016 and has not been
previously submitted to any other university or institute for any other purpose by me or by
any other person.
I will not use this project report in future to use as submission to any other university or
institute without written permission of my guide.
I also promise not to permit any other person to copy from this report in any form.
If I am found or caught as defaulter of above declaration, I know that my present of future
submission may become invalid and or may not be permitted to appear in final exam.
Khushbu Chauhan
FINANCE
ROLL NO: 05
SIGN

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EXECUTIVE SUMMARY
A Mutual fund is a scheme in which several people invest their money for a
common financial goal. The collected money invest in the capital market, debt and the money
market, which they earned, is divided based on the number of units which they hold.
The topic of this project is “A Study of Investor’s Buying Behavior towards
Various Schemes of HDFC Mutual Fund”. In this project study of the all the factors which
affect investors in investing their money in to Mutual Fund scheme.
In chapter one, there is introduction about Mutual Fund. In this I have covered
concept, advantage, risk, history, type, SEBI rules regulation related to Mutual fund. Second
chapter consider as company profile, in which there is introduction about the HDFC mutual
Fund, their vision, and product should be mentioned.
Third chapter is all about Research Methodology. It’s gives idea about objective,
population, research design, population, sample, sampling size, data collection, instrument,
limitation, and data analysis. Fourth chapter consists of Data analysis, and this analysis is
done with the help of SPSS software, frequencies and cross-tabulation should be counted.
In Fifth chapter consists of conclusion from data analysis. Last part of the
project report includes bibliography and annexure.

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Index
ACKNOWLEDGEMENT ..................................................................................................ii
DECLARATION................................................................................................................iii
EXECUTIVE SUMMARY................................................................................................ iv
1. Introduction ................................................................................................................. 3
1.1. Concept of Mutual fund:-..............................................................................................3
1.2. Benefits of investing in a mutual fund:-.........................................................................5
1.3. Risk in mutual fund:- ....................................................................................................8
1.4. History of mutual fund :-...............................................................................................9
1.5. Types of mutual fund:-................................................................................................11
1.6. SEBI Rules and Regulations for Mutual Fund:-...........................................................14
1.7. Frequently used terms:-...............................................................................................16
2. Company Profile ........................................................................................................ 17
2.1. Introduction:-..............................................................................................................17
2.2. Vision of HDFC Mutual Fund:- ..................................................................................19
2.3. HDFC Mutual Fund Products:- ...................................................................................19
3. Research Methodology............................................................................................... 22
3.1. Objective:- ..................................................................................................................22
3.2. Research Design:- .......................................................................................................22
3.3. Population:- ................................................................................................................22
3.4. Sample:-......................................................................................................................22
3.5. Sampling size:- ...........................................................................................................22
3.6. Data Collection:-.........................................................................................................23
3.7. Instrument:- ................................................................................................................23

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3.8. Data analysis:- ............................................................................................................23
3.9. Limitation:-.................................................................................................................23
3.10. Scope for the future study ...........................................................................................24
4. Data analysis .............................................................................................................. 25
5. Conclusion.................................................................................................................. 41
Bibliography...................................................................................................................... 42
Annexure ........................................................................................................................... 43

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1.Introduction
1.1. Concept of Mutual fund:-
A mutual fund is a common pool of money into which investors place their
contributions that are to be invested in accordance with a stated objective. In simple word, a
mutual fund collects the savings from small investors, invest them in government and other
corporate securities and earn income through interest and dividends, besides capital gains. It
works on the principle of “small drops of water make big ocean”.
Simply put, the money pooled in by a large number of investors is what makes up a
Mutual Fund. This money is then managed by a professional Fund Manager, who uses his
investment management skills to invest it in various financial instruments.
It is formed by the coming together of a number of investors who transfer their
surplus funds to a professionally qualified organization to manage it. To et the surplus funds
from investors, the fund adopts a simple technique. Each fund is divided into small fraction
called “units” of equal value. Each investor is allocated units in proportion to the size of his
investment.
“The mutual fund as an important vehicle for bringing wealth holders and deficitunits
together indirectly”
The concept of mutual fund has been defined in various ways.
“Mutual fund as financial intermediaries which being a wide variety of securitieswith in the
reach of the most modest of investors”
Frank Relicy

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According to SEBI mutual fund regulations 1993,
“Mutual fund means a fund established in the form of trust by sponsor to
raise moneys by the trustees through the sale of units to the public under one or more
schemes for investing insecurities in accordance with these regulations.
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through these
investments and the capital appreciation realised are shared by its unit holders in proportion
to the number of units owned by them. Thus a Mutual Fund is the most suitable investment
for the common man as it offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost.
The flow chart below describes broadly the working of a mutual fund:

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1.2. Benefits of investing in a mutual fund:-
As an investor, we would like to get maximum returns on our investments,
but we may not have the time to continuously study the stock market to keep track of them.
We need a lot of time and knowledge to decide what to buy or when to sell. A lot of people
take a chance and speculate, some get lucky, and most don’t. This is where mutual funds
come in. Mutual funds offer the following advantages:
 Professional management:
Qualified professionals manage our money, but they are not alone.
They have a research team that continuously analyses the performance and prospects
of companies. They also select suitable investments to achieve the objectives of the
scheme. It is a continuous process that takes time and expertise which will add value
to our investment. Fund managers are in a better position to manage our investments
and get higher returns.
 Diversification:
The cliché, "don't put all your eggs in one basket" really applies to
the concept of intelligent investing. Diversification lowers our risk of loss by
spreading our money across various industries and geographic regions. It is a rare
occasion when all stocks decline at the same time and in the same proportion. Sector
funds spread our investment across only one industry so they are less diversified and
therefore generally more volatile.
 More choice:
Mutual funds offer a variety of schemes that will suit our needs over a
lifetime. When we enter a new stage in our life, all we need to do is sit down with our
financial advisor who will help us to rearrange our portfolio to suit our altered
lifestyle.

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 Affordability:
As a small investor, we may find that it is not possible to buy shares of
larger corporations. Mutual funds generally buy and sell securities in large volumes
which allow investors to benefit from lower trading costs. The smallest investor can
get started on mutual funds because of the minimal investment requirements. we can
invest with a minimum of Rs.500 in a Systematic Investment Plan on a regular basis.
 Tax benefits:
Investments held by investors for a period of 12 months or more qualify
for capital gains and will be taxed accordingly. These investments also get the benefit
of indexation.
 Liquidity:
we can redeem all or part of our investment any time we wish and receive
the current value of the shares. Funds are more liquid than most investments in shares,
deposits and bonds. Moreover, the process is standardized, making it quick and
efficient so that we can get our cash in hand as soon as possible.
 Rupee-cost averaging:
With rupee-cost averaging, we invest a specific rupee amount at regular
intervals regardless of the investment's unit price. As a result, our money buys more
units when the price is low and fewer units when the price is high, which can mean a
lower average cost per unit over time. Rupee-cost averaging allows us to discipline
our self by investing every month or quarter rather than making sporadic investments.

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 Transparency:
The performance of a mutual fund is reviewed by various
publications and rating agencies, making it easy for investors to compare fund to
another. As a unit holder, we are provided with regular updates, for example daily
NAVs, as well as information on the fund's holdings and the fund manager's strategy.
 Regulations:
All mutual funds are required to register with SEBI (Securities
Exchange Board of India). They are obliged to follow strict regulations designed to
protect investors. All operations are also regularly monitored by the SEBI.

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1.3. Risk in mutual fund:-

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1.4. History of mutual fund :-
The mutual fund industry in India started in 1963 with the formation of Unit Trust
of India, at the initiative of the Government of India and Reserve Bank of India. The history
of mutual funds in India can be broadly divided into four distinct phases
 First Phase - 1964-1987
Unit Trust of India (UTI) was established in 1963 by an Act of
Parliament. It was set up by the Reserve Bank of India and functioned under the
Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was
de-linked from the RBI and the Industrial Development Bank of India (IDBI) took
over the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700
crores of assets under management.
 Second Phase - 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non-UTI, public sector mutual funds set up
by public sector banks and Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC). SBI Mutual Fund was the first non-UTI Mutual
Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund
in June 1989 while GIC had set up its mutual fund in December 1990. At the end of
1993, the mutual fund industry had assets under management of Rs. 47,004 crores.
 Third Phase - 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the
Indian mutual fund industry, giving the Indian investors a wider choice of fund
families. Also, 1993 was the year in which the first Mutual Fund Regulations came
into being, under which all mutual funds, except UTI were to be registered and

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governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was
the first private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers
and acquisitions. As at the end of January 2003, there were 33 mutual funds with total
assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs. 44,541 crores of assets
under management was way ahead of other mutual funds.
 Fourth Phase - since February 2003
In February 2003, following the repeal of the Unit Trust of India Act
1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking
of the Unit Trust of India with assets under management of Rs. 29,835 crores as at the
end of January 2003, representing broadly, the assets of US 64 scheme, assured return
and certain other schemes. The Specified Undertaking of Unit Trust of India,
functioning under an administrator and under the rules framed by Government of
India and does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB
and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.
76,000 crores of assets under management and with the setting up of a UTI Mutual
Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers
taking place among different private sector funds, the mutual fund industry has
entered its current phase of consolidation and growth.

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1.5. Types of mutual fund:-
Based on the maturity period:
o Open ended fund
An open-ended fund is a fund that is available for subscription and
can be redeemed on a continuous basis. It is available for subscription throughout the
year and investors can buy and sell units at NAV related prices. These funds do not
have a fixed maturity date. The key feature of an open-ended fund is liquidity.
o Close-ended Fund
A close-ended fund is a fund that has a defined maturity
period, e.g. 3-6 years. These funds are open for subscription for a specified
period at the time of initial launch. These funds are listed on a recognized
stock exchange. One of the characteristics of the close ended schemes is that
they are generally traded at a discount to NAV; but the discount on the fixed
date of redemption.
o Interval Funds
Interval funds combine the features of open-ended and close-
ended funds. These funds may trade on stock exchanges and are open for sale
or redemption at predetermined intervals on the prevailing NAV.
 Based on investment objectives
o Equity/Growth Funds
Funds that invest in equity shares are called equity fund. They
carry the principal objective of capital appreciation of the investment over the
medium to long term. The returns in such funds are volatile since they are
directly to the stock market. They are best suited for investors who are seeking
capital appreciation. There are different types of equity funds such as
diversified funds, sector specific funds and index based funds.

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o Debt/Income Funds
Debt/ Income funds generally invest in securities such as
bonds, corporate debentures, government securities (gilts) and money market
instruments. By investing in debt instruments, these funds provide low risk
and stable income to investors with preservation of capital. These funds tend
to be less volatile than equity funds and produce regular income. These funds
are suitable for investors whose main objective is safety of capital with
moderate growth.
o Balanced Funds
Balanced funds invest in both equities and fixed income
instruments in line with the pre-determined investment objective of the
scheme. These funds provide both stability of returns and capital appreciation
to investors. These funds with equal allocation to equities and fixed income
securities are ideal for investors looking for a combination of income and
moderate growth. They generally have an investment pattern of investing
around 60% in Equity and 40% in Debt instruments.
o Money Market/ Liquid Funds
Money market/ Liquid funds invest in safer short-term
instruments such as Treasury Bills, Certificates of Deposit and Commercial
Paper for a period of less than 91 days. The aim of Money Market /Liquid
Funds is to provide easy liquidity, preservation of capital and moderate
income. These funds are ideal for corporate and individual investors looking
for moderate returns on their surplus funds.
o Gilt Funds
Gilt funds invest exclusively in government securities. Although
these funds carry no credit risk, they are associated with interest rate risk.
These funds are safer as they invest in government securities.

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 Some of the common types of mutual funds and what they typically invest in:
Type of Fund Typical Investment
Equity or Growth Fund Equities like stocks
Fixed Income Fund Fixed income securities like government and corporate bonds
Money Market Fund Short-term fixed income securities like treasury bills
Balanced Fund A mix of equities and fixed income securities
Sector-specific Fund Sectors like IT, Pharma, Auto etc.
Index Fund Equities or Fixed income securities chosen to replicate a
specific Index for example S&P CNX Nifty
Fund of funds Other mutual funds
 Other Schemes
o Tax-Saving (Equity linked Savings Schemes) Funds
Tax-saving schemes offer tax rebates to investors under specific
provisions of the Income Tax Act, 1961. These are growth-oriented schemes
and invest primarily in equities. Like an equity scheme, they largely suit
investors having a higher risk appetite and aim to generate capital appreciation
over medium to long term.
o Index Funds
Index schemes replicate the performance of a particular index
such as the BSE Sensex or the S&P CNX Nifty. The portfolio of these
schemes consist of only those stocks that represent the index and the weight

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age assigned to each stock is aligned to the stock’s weight age in the index.
Hence, the returns from these funds are more or less similar to those generated
by the Index.
o Sector-specific Funds
Sector-specific funds invest in the securities of only those
sectors or industries as specified in the Scheme Information Document. The
returns in these funds are dependent on the performance of the respective
sector/industries for example FMCG, Pharma, IT, etc. The funds enable
investors to diversify holdings among many companies within an industry.
Sector funds are riskier as their performance is dependent on particular sectors
although this also results in higher returns generated by these funds.
1.6. SEBI Rules and Regulations for Mutual Fund:-
The following restrictions apply to mutual fund companies:
 A mutual fund company may not purchase securities on margin.
 A mutual fund company may not own a joint account that trades securities.
 A mutual fund company may not affect a short sale of any security.
 A mutual fund company may not purchase more than 3% of the outstanding voting
stock of another investment company.
Section 12b-1
Section 12b-1 of the Investment Company Act of 1940 allows the mutual fund company to
pay the principal underwriter for the costs of sales literature, promotional items and other
selling expenses by collecting 12b-1 fees. These fees are charged to fund's shares and are
permissible if the following conditions are met:
 Payments to the principal underwriter are made according to a written plan that
outlines the proposed financing and distribution agreement
 The majority of shareholders and majority of non affiliated directors initially approves
and continues to annually approve the plan

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 The board of directors reviews the payments under the plan at least quarterly
 The plan and its related agreements may be terminated without penalty at any time
with 60 days written notice
Shareholder Rights
An investment company must abide by certain shareholder rights. The following activities are
prohibited unless approved by a majority shareholder vote:
 A mutual fund company may not borrow money, make loans, buy or sell real estate,
or underwrite securities issued by other companies.
 A mutual fund company may not change its investment objectives.
 A mutual fund company may not change the nature of its business and cease acting as
an investment company.
 A mutual fund company cannot change from a diversified form to an undiversified
one.
Shareholders must also receive certain semiannual financial reports, including the following:
 A balance sheet and a statement of the fund's total investment value.
 An income statement for the period covered.
 A list of the securities' amounts and values on the date the balance sheet was issued.
 A statement of the salaries and other monies paid to the directors, advisory board and
officers.
 Total dollar amounts of securities purchases and sales.

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1.7. Frequently used terms:-
 Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the scheme minus its
liabilities. The per unit NAV is the net asset value of the scheme divided by the
number of units outstanding on the Valuation Date.
 Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It
may include a sales load.
 Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may
include a back-end load. This is also called Bid Price.
 Redemption Price
Is the price at which open-ended schemes repurchase their units and close-
ended schemes redeem their units on maturity. Such prices are NAV related.
 Sales Load
Is a charge collected by a scheme when it sells the units. Also called, ‘Front-
end’ load. Schemes that do not charge a load are called ‘No Load’ schemes.
 Repurchase or ‘Back-end’Load
Is a charge collected by a scheme when it buys back the units from the
unitholders.

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2.Company Profile
2.1. Introduction:-
HDFC ASSET MANAGEMENT COMPANY LIMITED (AMC)
AMC was incorporated under the Companies Act, 1956, on
December 10, 1999, and was approved to act as an AMC for the Mutual Fund by SEBI
on July 30, 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 HDFC Asset
Management Company Limited to manage the Mutual Fund. As per the terms of the
Investment Management Agreement, the AMC will conduct the operations of the
Mutual Fund and manage assets of the schemes, including the schemes launched
from time to time.
The equity shareholding pattern of the AMC as on March 31, 2014 is as follows:
Particulars % of the paid up equity
capital
Housing Development Finance Corporation Limited 59.81
Standard Life Investments Limited 39.87
Other Shareholders(shares issued on exercise of stock
options)
0.32
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.

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On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual Fund
have migrated to HDFC Mutual Fund on June 19, 2003. These Schemes have been renamed
as follows:
Former Name New Name
Zurich India Capital Builder Fund HDFC Capital Builder Fund
Zurich India Equity Fund HDFC Equity Fund
Zurich India High Interest Fund HDFC High Interest Fund
Zurich India Liquidity Fund HDFC Cash Management Fund
Zurich India Prudence Fund HDFC Prudence Fund
Zurich India Sovereign Gilt Fund HDFC Sovereign Gilt Fund*
Zurich India TaxSaver Fund HDFC TaxSaver
Zurich India Top 200 Fund HDFC Top 200 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 February 12, 2013 to act as a
Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of
Registration is valid from January 1, 2013 to December 31, 2015.

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2.2. Vision of HDFC Mutual Fund:-
“To be a dominant player in the Indian Mutual Fund space Recognized for its high
levels of ethical and professional conduct and a commitment towards enhancing
investor interest”
2.3. HDFC Mutual Fund Products:-
Equity Funds
HDFC Growth Fund
HDFC Equity Fund
HDFC Top 200 Fund
HDFC Capital Builder Fund
HDFC Core & Satellite Fund
HDFC Premier Multi-Cap Fund
HDFC Arbitrage Fund
HDFC Long Term Advantage Fund
HDFC TaxSaver
HDFC Index Fund
HDFC Mid-Cap Opportunities Fund
HDFC Infrastructure Fund

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Debt Funds
HDFC Income Fund
HDFC High Interest Fund - Dynamic Plan
HDFC High Interest Fund - Short Term Plan
HDFC Short Term Plan
HDFC Short Term Opportunities Fund
HDFC Medium Term Opportunities Fund
HDFC Gilt Fund - Long Term Plan
HDFC Floating Rate Income Fund - Short Term Plan & Long Term Plan
HDFC Liquid Fund
HDFC Cash Management Fund - Saving Plan
HDFC Cash Management Fund - Treasury Advantage Plan
HDFC Corporate Debt Opportunities Fund
Balanced Funds
HDFC Balanced Fund
HDFC Prudence Fund
HDFC Children's Gilt Fund - Investment Plan
HDFC Children's Gilt Fund - Saving Plan

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HDFC MF Monthly Income Plan
HDFC Multiple Yield Fund
HDFC Multiple Yield Fund - Plan 2005

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3.Research Methodology
3.1. Objective:-
 Primary Objective:- “To study of investor’s buying behavior towards various
Schemes of HDFC Mutual Fund.”
 Secondary Objective:-
To study of investor’s behavior for factors affecting HDFC Mutual Fund Scheme.
To study the effect of demographic profile of investors on their behavior for factors
affecting HDFC Mutual Fund Scheme.
3.2. Research Design:-
 Descriptive research is used to collect information about HDFC Mutual Fund
investor. Therefore it is used in the study to describe the behavior of particular
population in a systematic and accurate way.
3.3. Population:-
 For the present study undertaken the population is Mutual Fund investors who invest
in Mutual Fund.
3.4. Sample:-
 The respondents have been researched by selecting the person who invest their money
in HDFC Mutual Fund.
3.5. Sample size:-
 The Sample size is only 200 respondents.

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3.6. Data Collection:-
 Primary Data Collection: - The Primary information is collected from the various
respondents through a complete questionnaire.
 Secondary Data Collection: - Secondary information is also collected for
understanding the topic in better way. It’s give clarity about the study. And this
information collects through website, journals, and articles.
3.7. Instrument:-
 Questionnaire is used for the research work. Question used in this research are
Ranking question, Open ended question, multiple choice question and Single choice
single question.
 Personal Survey Method – Here personal survey Method is used to collect respondent
through Questionnaire. Respondent are contacted in HDFC Mutual Fund Office in
order to collect information from them.
3.8. Data analysis:-
 For the analysis in this study first of frequency should be counted to check to which
factor should be most important. And after that cross tabulation is used to check the
effect of demographic profile on perception of investors on their perception about
factors affecting their buying behavior.
3.9. Limitation:-
 The respondents are less interested in answering the questionnaire, as they felt that it
is interruption to their regular work.

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 Few respondents might be hesitant to give financial information which can affect
validity of all responses.
3.10. Scope for the future study
 The study will be useful for the further knowledge about the preferences of the
investors of mutual fund.
 This project can be used as a secondary source of information in future by the
investors or by those who want to do further analysis on the same topic.

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4.Data analysis
1. Are you regular Investors in HDFC Mutual Fund?
Interpretation: - With this table we can see that 87% people are regular investors in HDFC
Mutual fund whereas 13% people are not investing their money on regular basis.
2. Are you aware about all the Features of HDFC Mutual Fund?
Interpretation: -
This Table shows that only 48% people are there who knowing about the
Features of Mutual Fund whereas 52 % people do not know about the features of the mutual
fund.
174
87
26
13
0 50 100 150 200
Frequency
Percent
no yes
96
48
104
52
0 50 100 150
Frequency
Percent
no yes
Regular
Investors
Frequency Percent
Valid Yes 174 87.0
No 26 13.0
Total 200 100.0
Aware about
Feature
Frequency Percent
Valid Yes 96 48.0
No 104 52.0
Total 200 100.0

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3. Where do you find yourself as Mutual fund Investors?
Interpretation: -
According to this table there are many customers who are only aware about
the scheme in which they have invested. Whereas there are few investor who are aware
about all features of Mutual Fund.
6
45
102
47
3
22.5
51
23.5
0 20 40 60 80 100 120
Totally Ignorant
PartialKnow About Mutual Fund
Aware Only Few Specific scheme which you
invested
Fully aware
Percent Frequency
Frequency Percent
Valid Totally Ignorant 6 3.0
Partial Know About Mutual Fund 45 22.5
Aware Only Few Specific scheme
which you invested
102 51.0
Fully aware 47 23.5
Total 200 100.0

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4. Which information source you consider before purchasing investing in
HDFC Mutual Fund?
Interpretation: -
In this chart we easily say that there are many Investors which take
information from Broker/agent/ Adviser. Than Friends, Self Study, Relative, News Paper,
Magazines, TV. Most of investors take information from the Broker/Agent/Adviser of the
HDFC Mutual Fund. 73% are investors take advice from their Broker and Agent. Whereas
64.5% investors take advice from their Friends, 28.5% inventors do their own because of
their knowledge, 21.5 % investors take advice from Relative members, 19% take from News
Paper, 15% inventors take from Magazines, 11.5% investors take from TV.
129
43
23
38
30
146
57
64.5
21.5
11.5
19
15
73
28.5
Friends
Relative
TV
News Paper
Magazines
Broker/agent/Adviser
Self study/Self decision
Source Of the Information
Percent Frequency

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5. You choose HDFC Mutual Fund Because Of..
Interpretation: -
With the help of this chart we see that their 84.5% investors invest in HDFC
Mutual Fund because of their Brand Image. 44% investors are investing in HDFC Mutual
Fund Because of Recommendation. 40% investors are investing because of Investment
Philosophy. 22% inventors are investing in HDFC Mutual fund because of their Fund
management team. 18.5% investors invest because of the past record. So we can say that for
any investors Brand Image is most important. If brand Image is not their no one can invest in
it. And in HDFC Mutual fund More of Inventors invest in it because of their Brand image.
169
37
44
88
80
84.5
18.5
22
44
40
Brand image
Past record
Fund management team
Recommendation
Investment philosophy
Choose HDFC Mutual Fund Because Of
Percent Frequency

29
6. How important are the following factors in selecting for HDFC Mutual
Fund?
Most Important
Interpretation:-
With help of this chart we can say that Out of 200 respondent 170
responses believe that safety is most important factor while investing in Mutual fund. Than
according to order 140 investors believe that Brand images is most important factor, 129
investors believe that High return and Investing Objective most important factors, 126
investors believe that Tax Benefit is most Important Factors. Whereas 114 and 108 investors
believe that Regular Income and Past Performance is most important Factors. 106 investors
believe that Reliability and Fund Manger affect most while investing in mutual fund.76
investors think that liquidity is most important factors while investing in Mutual Fund.
Safety, 170
Brand Image,
140
High Return, 129
Investing
Objective,
129Tax Benefit,
126
Regular
Income,
114
Past
Performance,
108
Reliability,106
Fund
manager,
106
Liquidity, 76

30
Important
Interpretation:-
As shown in above chart that many investors give importance to factors
Now in this chart it is show that for investors, factors are only important. 116 investors say
that liquidity is only important not most important like safety. According to 79 investors
Reliability and Past Performance are only important for them. According to 75 and 71
investors Fund manager and regular Income are important for them. Whereas according to
66, 64 and 61 investors High Return, Tax benefit and investment objective are only important
for them. 48 investors say that brand image is only important for them. And at last 25
investors safety is important for them but not most important.
Liquidity, 116
Reliability,79
Past Performance,
79
Fund manager,
75
Regular
Income, 71
High Return, 66
Tax Benefit, 64
Investing
Objective, 61
Brand
Image,
48
Safety, 25

31
Partially Important
Interpretation:-
There are many investors who think that such factors are partially
important for them. Not most and not less. There are 19 investors who think that Fund
manger is partially important for them. Safety is not a bothering for this 19 investor. same as
14 investors for Reliability, 12 investors for Regular Income, 11 investors for Past
performance, 10 investors for Brand Image, 9 investors for Investing Objective and Tax
benefit, 7 investors for Liquidity, 5 investors for High Return, 4 investors for safety. Here we
can say that there are many investors who believe that factors are important for them but it’s
up to different investors which factors they give first priority.
Fund manager 19
Reliability14
Regular
Income12
Past
Performance
11
Brand
Image10
Investing
Objective9
Tax Benefit 9
Liquidity7
High Return 5
Safety 4

32
Not Important
Interpretation:-
This chart show that how many investors are their which does not give
importance to the factors while investing in HDFC Mutual Fund. Now this show that there
are 3 investors who does not give importance to Regular income while they investing in fund.
Similarly 2 investors do not give importance to Brand image and Past performance, 1
investor does not give importance to Safety, Investing Objective, Tax benefit, Reliability and
liquidity. Whereas chart shows that Fund manager and high return are two factors which are
important to all investors as most important, only important, and partially important.
RegularIncome, 3
Brand Image, 2
Past Performance,
2
Safety, 1
Investing
Objective, 1
Tax Benefit, 1
Reliability,
1
Liquidity, 1
High Return, 0 Fund manager, 0

33
7. In what type of fund you invest in.
Frequency Percent
Equity 87 43.5
Debt 56 28
balanced 57 28.5
Total 200 100
Interpretation: -
In this survey there are 43.5% investors who invest in Equity, where as 28%
investors invest in Debt and 28.5% investors invest in Balanced.
Here all the Frequency of the investors under which sachems they invest:
If you invest In Equity Fund which schemes you prefer?
Frequency Percent
HDFC Growth Fund 38 19
HDFC Equity Fund 22 11
HDFC Top 200 Fund 62 31
HDFC Capital Builder Fund 8 4
HDFC Core & Satellite Fund 3 1.5
HDFC Premier Multi-Cap Fund 3 1.5
HDFC Arbitrage Fund 3 1.5
HDFC Long Term Advantage Fund 18 9
HDFC TaxSaver 47 23.5
HDFC Index Fund 22 11
HDFC Mid-Cap Opportunities Fund 10 5
HDFC Infrastructure Fund 8 4

34
If you invest in Debt Fund which schemes you prefer?
Frequency Percent
HDFC Income Fund 37 18.5
HDFC High Interest Fund – Dynamic Plan 10 5
HDFC High Interest Fund – Short Term Plan 7 3.5
HDFC Short Term Plan 19 9.5
HDFC Short Term Opportunities Fund 12 6
HDFC Medium Term Opportunities Fund 18 9
HDFC Gilt Fund –Long Term Plan 11 5.5
HDFC Floating Rate Income Fund – Short Term
Plan & Long Term Plan
8 4
HDFC Liquid Fund 23 11.5
HDFC Cash Management Fund – saving Plan 18 9
HDFC Cash Management Fund – Treasury
Advantage Plan
7 3.5
HDFC Corporate Debt Opportunities Fund 15 7.5
If you invest in Balanced Fund which schemes you prefer?
Frequency Percent
HDFC Balanced Fund 45 22.5
HDFC Prudence Fund 20 10
HDFC children’s Gilt Fund – Investment Plan 12 6
HDFC Children’s Gilt Fund- Saving Plan 18 9
HDFC MF Monthly Income Plan 22 11
HDFC Multiple Yield Fund 33 16.5
HDFC Multiple Yield Fund – Plan 2005 12 6

35
8. How you select the Schemes?
Interpretation: -
Here we can say that out of 100% investors there are 61% investors select
their scheme based on their need, Access money , and Timing. It depends on investors what
they want and what their purpose to invest in it is.
9. For how much time period do you invest in Mutual fund?
Frequency Percent
<1 Year 2 1
1- 3 year 25 12.5
4-6 year 65 32.5
7-9 year 95 47.5
>10 year 13 6.5
Total 200 100
Interpretation: -
With help of this table we can say that 47.5% inventors invest their money
for 7-9 year, 32.5% investors invest their money for 4-6 year, 12.5% investors invest their
money for 1-3 year, 6.5% investors invest their money for more than ten year. Now this table
relate with Occupation which is known as cross tabulation.
Frequency Percent
Need based 28 14
Access Money 33 16.5
Timing 17 8.5
All above 122 61
Total 200 100

36
Cross tabulation between Time period and Occupation
Interpretation: -
With this table we easily get relation between Time period and Occupation.
Here we can see that Business people are mostly investing their money for 7 – 9 years.
Whereas 19 business person are those who are investing their money for 4 – 6 year. And for
above table we also can say that business person are not investing their money for short term
period, every business person we say that only 1 out of 74 investing in short term which is
investing for less than 1 year. There are 10 investors who invest their money for more than 10
year. When we talk about salaried person, they invest their money for not so short term or
long term on a average 4 – 6 year or 7 – 9 year. Salaried person are not investing their money
for short term period because they want to get befits of divined. Professional person are most
invest their money for 7 – 9 years. Very few professional person or may be 1 out of 31 invest
their money for less than 1 year, 1-3 year, and more than 10 year. when we talk about the
retired person they mostly invest their money for average period of time we can say that 4 – 6
year or 7 – 9 year. They are not going for the short term investment which is less than 1 year.
After this we simply say that out of 200 investors 95 investors are there who invest their
money to 7 – 9 year period of time.
Cross tabulation Occupation Total
Business Salaried
person
Professional Retire
Time Period < 1 Year 1 0 1 0 2
1 - 3 Year 11 12 1 1 25
4 - 6 Year 19 24 11 11 65
7 - 9 Year 33 23 17 22 95
> 10 Year 10 2 1 0 13
Total 74 61 31 34 200

37
10. While investing any Mutual fund scheme you give preference to?
Frequency Percent
New Scheme 29 14.5
Existing Scheme 171 85.5
Total 200 100
Interpretation: -
Here 85.5% investors are investing in existing Scheme where as 14.5%
investors are investing in new scheme.
11. When you invest in HDFC Mutual Fund Which Mode of investment
will you prefer?
Frequency Percent
Systematic Investment Plan 103 51.5
One time Investment 97 48.5
Total 200 100
Interpretation: -
With Help of this table we can see that 48.5% investors are investing in one
time investment where as 51.5% investors are their which invest in Systematic Invest Plan.
We can understand this table more detail with the help of cross tabulation with occupation.
Which is shown in next table.

38
Cross tabulation between Mode of Investment and Occupation
Occupation Total
Business Salaried
person
Professional Retire
Mode Of
Investment
Systematic
Investment Plan
34 52 16 1 103
One Time
Investment
40 9 15 33 97
Total 74 61 31 34 200
Interpretation: -
Here with this table we can say that Business person are mostly preferred both type of
Investment. 34 business investors invest in Systematic Investment Plan where as 40 business
investors invest in Onetime investment. When we talk about the salaried person they mostly
prefer Systematic investment plan. They are salaried person so they get their money on
monthly basis so they want to go Systematic plan so that they get benefit of dividend also on
regular timing rather than one time investment. Whereas professional person invest their
money in term of Systematic or One time investment plan. As shown in table that there are 16
Professional investors that invest in Systematic invest Plan, and 15 Professional investors
invest in one time Investment. Now about retire person they mostly invest in one time
Investment. 33 retired investors out of 34 invest in one time investment.

39
12. Do you often switch over to others Mutual Fund Scheme?
Frequency Percent
Yes 121 60.5
No 79 39.5
Total 200 100
Interpretation: -
As shown in above table, there 60.5 % investors are there which is switch
over to other mutual fund scheme. Whereas there are 39.5 % investors are there which they
cannot switch over the other Mutual Fund scheme.
If yes, than what is purpose of Switch over from one scheme/fund to another?
Frequency Percent
Profitability 23 11.5
Security 13 6.5
both 85 42.5
Total 121 60.5
Interpretation: -
As shown in the above figure that 60.5 % investors switch over to other
Mutual Fund Scheme. They switch over the other scheme because of Profitability, Security
and may be both. Here 11.5 % investors are there who switch over to other scheme because
of Profitability. 6.5 % investors are there who switch over to other scheme because of
Security. Whereas 42.5 % investors switch over to other scheme because of both the reason
Profitability and Security.

40
13. Which type of return you want to receive?
Frequency Percent
Dividend Payout 54 27
Dividend Reinvestment 91 45.5
Growth in NAV 55 27.5
Total 200 100
Interpretation: -
This table shows type of returns they want to receive. Here 27 % inventors
want their return in terms of Dividend Payout, 45.5 % investors want to receive their return in
terms of Dividend Reinvestment that means they want to reinvest their dividend not to get
back, and 27.5% Investors want to receive their return in terms of growth in NAV.
14. The purpose of investing in HDFC Mutual Fund has been achieved?
Frequency Percent
Yes 190 95
No 10 5
Total 200 100
Interpretation: - There are 95% investors which are satisfied with HDFC Mutual Fund
Schemes where they invest. Because of which purpose of their investing is achieved.
Whereas only 5% inventors are there who cannot achieve purpose of investing in HDFC
Mutual Fund.

41
5. Conclusion
While investing in any Mutual fund scheme, investor’s preference is
different towards various schemes. When investors invest in any scheme, many factors affect
the decision of investors. According to investors, the most important factor while investing in
HDFC Mutual fund are safety, Brand Image, High Return and Investing Objective. Investors
choose HDFC Mutual Fund Because of Company’s Brand image, Recommendation,
Investment Philosophy, Fund management team and Past record. 95% respondents or
investors are satisfied with the HDFC mutual fund whereas 5% investors are not satisfied.

42
Bibliography
 AMFI. (n.d.). Retrieved from https://www.amfiindia.com/
 Franklin.Templeton.Invetment.Retrieved.from
http://www.franklintempletonindia.com/en_IN/investor/investor-education/fund-
basics/mutual-fund-avantages
 GetSmarterAboutMoney.Ca.Retrieved.from
http://www.getsmarteraboutmoney.ca/en/managing-your-money/investing/mutual-
funds-and-segregated-funds/Pages/Risks-of-mutual-funds.aspx#.VPWLWyycGVA
 HDFC MUTUAL FUND. Retrieved from http://www.hdfcfund.com/
 Principal Mutual funds.Retrieved from http://principalindia.com/knowledge-
centre/mutual-fund-basics.html
 SlideShare.Retrieved.from.http://www.slideshare.net/vaisalik/types-of-
research?related=1

43
Annexure
Questionnaire
I am Chauhan Khushbu from B.R.C.M College of business administration
undertaking this survey "A Study of investors Buying Behavior towards various schemes of
the HDFC Mutual Fund. This survey is only for educational purpose and I kindly request you
to fill the questionnaire. I assure you that all the data and opinions furnished by you will be
kept confidential.
1. Are you regular investors in HDFC Mutual fund?
( ) Yes
( ) No
2. Are you aware about all the features of HDFC Mutual fund?
( ) Yes
( ) No
3. Where do you find yourself as a Mutual fund investors?
( ) Totally Ignorant
( ) Partial know about Mutual fund
( ) Aware only few specific scheme which you invested
( ) Fully aware

44
4. Which information source you consider before purchasing/investing in HDFC Mutual
Fund? (You can choose more than option )
( ) Friends
( ) Relative
( ) TV
( ) News paper
( ) Magazines
( ) Broker/Agent/Adviser
( ) Self study/Self decision
5. You Choose HDFC Mutual fund Because of.. (You can choose more than one option)
( ) Brand image
( ) Past record
( ) Fund management team
( ) Recommendation
( ) Investment philosophy

45
6. How important are the following factors in selecting for HDFC Mutual fund?
3= Most important, 2= important, 1= partially important, 0= Not important
3 2 1 0
Safety ( ) ( ) ( ) ( )
Liquidity ( ) ( ) ( ) ( )
Reliability ( ) ( ) ( ) ( )
Tax Benefit ( ) ( ) ( ) ( )
Higher Return ( ) ( ) ( ) ( )
Regular Income ( ) ( ) ( ) ( )
Past
performance
( ) ( ) ( ) ( )
Fund Manager ( ) ( ) ( ) ( )
Brand Image ( ) ( ) ( ) ( )
Investment
Objective
( ) ( ) ( ) ( )

46
7. In What type of fund you invest in.
( ) Equity
( ) Debt
( ) Balanced
( ) Other
If You invest in Equity Fund which schemes you prefer ?
You can choose more than one option
( ) HDFC Growth Fund
( ) HDFC Equity Fund
( ) HDFC Top 200 Fund
( ) HDFC Capital Builder Fund
( ) HDFC Core & Satellite Fund
( ) HDFC Premier Multi-Cap Fund
( ) HDFC Arbitrage Fund
( ) HDFC Long Term Advantage Fund
( ) HDFC TaxSaver
( ) HDFC Index Fund
( ) HDFC Mid-Cap Opportunities Fund
( ) HDFC Infrastructure Fund

47
If you invest in Debt Fund which schemes you prefer?
( ) HDFC Income Fund
( ) HDFC High Interest Fund - Dynamic Plan
( ) HDFC High Interest Fund - Short Term Plan
( ) HDFC Short Term Plan
( ) HDFC Short Term Opportunities Fund
( ) HDFC Medium Term Opportunities Fund
( ) HDFC Gilt Fund - Long Term Plan
( ) HDFC Floating Rate Income Fund - Short Term Plan & Long Term Plan
( ) HDFC Liquid Fund
( ) HDFC Cash Management Fund - Saving Plan
( ) HDFC Cash Management Fund - Treasury Advantage Plan
( ) HDFC Corporate Debt Opportunities Fund
If you invest in Balanced Fund which schemes you prefer?
( ) HDFC Balanced Fund
( ) HDFC Prudence Fund
( ) HDFC Children's Gilt Fund - Investment Plan
( ) HDFC Children's Gilt Fund - Saving Plan

48
( ) HDFC MF Monthly Income Plan
( ) HDFC Multiple Yield Fund
( ) HDFC Multiple Yield Fund - Plan 2005
8. How you select the Schemes?
( ) Need based
( ) Access Money
( ) Timing
( ) All above
9. For how much time period do you invest in Mutual fund?
( ) < 1 year
( ) 1 - 3 year
( ) 4 - 6 year
( ) 7 - 9 year
( ) > 10 year
10. While investing any Mutual fund scheme you give preference to?
( ) New Scheme
( ) Existing Scheme

49
11. When you invest in HDFC Mutual Fund Which Mode of investment will you prefer?
( ) Systematic Investment Plan
( ) One time Investment
12. Do you often switch over to others Mutual Fund?
( ) Yes
( ) No
If yes, Than what is purpose of Switch over from one scheme/fund to another?
( ) Profitability
( ) Security
( ) Both
13. Which type of return you want to receive?
( ) Dividend Payout
( ) Dividend Reinvestment
( ) Growth in NAV
14. The purpose of investing in HDFC Mutual Fund has been achieved?
( ) Yes
( ) No

50
Personal Details:
Name:
Age :
Occupation:
( ) Business
( ) Salaried person
( ) Professional
( ) Retire
What’s your annual income?
( ) Below Rs 100000
( ) 100000 to 300000
( ) 300000 to 500000
( ) Above 500000

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