A Case Study: HDFC Asset Management Company

A CASE STUDY: HDFC MUTUAL FUND:

In India, one of the most successful asset management company in private sector is HDFC mutual fund. Since its establishment, it has made a great progress. HDFC mutual fund is constituted as a trust under the Indian Trust Act, 1882.HDFC offers several equity mutual fund schemes. The HDFC Asset Management Company Ltd (AMC) was established with the approval of SEBI on July 3, 2000 under the Companies Act. Total paid-up capital of it is Rs.25.161 cr. The sponsors of HDFC mutual fund are Standard Life Investment Ltd who hold 60% paid-up equity capital and Housing Development Finance Corporation Ltd who hold 40% of paid-up equity capital. To consolidate business, HDFC AMC took over with the necessary approval Ziurich

Ltd, Tata Iron & Steal Co. Ltd. etc. The total net asset under the scheme is Rs.394439.11 lakhs. The survey says that average return from this scheme is high which is 0.027109 more than the market return which is 0.01814. and also other risk free investment which is 0.001551.

HDFC Tax Saving Scheme:

HDFC Tax Saving Scheme is a ELSS with three years in lock. This is made investment in equity and equity related instrument under the SEBI regulations. For diversification, it also invests not exceeding 40% of its net asset to the overseas market like American Depository Receipt (ADR), Global Depository Receipt (GDR) etc. The net asset is Rs. 134134.74 lakhs. This scheme follows the ELSS guidelines and if the equity investment of such scheme is below 80 % then it is required to take the appropriate actions to control it. The performance of this scheme is increasing till Jan 2004. After considering the business during whole period of study the scheme performance is better than other risk free asst and also more than market return which gives only 0.01814 where the scheme gives

If any loss is occur no insurance is there for their money. And apart from the SEBI regulations some mutual funds are doing fraud. And there is the provision in SEBI Ombudsman regulations that it settles the disputes with three month. But it can be seen that most of the times they failed to do that within this period.

So, the investors must know before making an investment very well about the schemes and the security market rules. However, SEBI has taken some initiatives educating them by numerous programme. There are various websites like www.sebi.gov.in, www.amfiindia.com, etc they provides the day to day informations about the market and schemes. Apart from this the investors can take advice from the expert to know which scheme would be beneficial for him.

So, if the investors strategically invest, then equity linked scheme is the best options which provides maximum benefit than any other mutual fund scheme. The investors in equity linked scheme have gained over other mutual fund investors. The only thing for which the investors should be careful is that they must know very well about the market and the