(Amit Kr. Jha) Mutual Fund Simplified Project

SUMMER INTERNSHIP PROJECT REPORT

ON

“MUTUAL FUND SIMPLIFIED”

CARRIED ON AT

SUBMITTED TO

ASIA PACIFIC INSTITUTE OF MANAGEMENT, NEW DELHI

IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE AWARD OF

POST GRADUATE DIPLOMA IN MANAGEMENT

UNDER THE GUIDANCE OF

(DR. DEVENDRA BHAHADUR)

(OMDS FACULTY)

SUBMITTED BY:

(AMIT KUMAR JHA)

(2K14G010)

PGDM BATCH 2014-2016

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DECLARATION

I, AMIT KUMAR JHA, hereby declare that the project work entitled “MUTUAL FUND

SIMPLIFIED” submitted towards partial fulfillment of requirements for the award of Post

Graduate Diploma in Management is my original work and the dissertation has not formed

the basis for award of any degree, associate ship, fellowship or any similar title to the best of

my knowledge.

Place: NEW DELHI (Signature of Student)

Date: (AMIT KUMAR JHA)

Roll No: 2K13G010

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Acknowledgement

It is my proud privilege to release the feelings of my gratitude to several persons who helped

me directly or indirectly to conduct this project work. I express my heart full in debt and owe

a deep sense of gratitude to my teacher and my faculty guide Prof. DEVENDRA

BAHADUR, Asia Pacific Institute of Management and Mr. ANUJ AGARWAL, Training

Manager, ICICI SECURITIES, 17,18,19, 2nd Floor, Kailash Enclave New Delhi, for their

sincere guidance and inspiration in completing this project.

I am extremely thankful to faculty members of the Asia Pacific Institute of Management for

their coordination and cooperation and thankful to Prof. DEVENDRA BAHADUR for his

kind guidance and encouragement.

I am also extremely thankful to all those persons who have positively helped me and ICICI

Securities customers who responded my questionnaire, around whom the whole project cycle

revolves.

I also thank all my friends who have more or less contributed to the preparation of this

project report. I will be always indebted to them.

Thanking you

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CERTIFICATE

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CERTIFICATE

This is to certify that Mr. Amit Kumar Jha , Roll number 2K14G010, a student of PGDM in

Asia Pacific Institute of Management, New Delhi, has carried out the Summer Internship

Project work presented in this report titled “MUTUAL FUND SIMPLIFIED’ for the award

of Post Graduate Diploma in Management for the Academic Batch 2014-16, under my

guidance.

(Signature)

Devendra Bahadur

Date:

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PREFACE

In our two years diploma program of POST GRADUTE DIPLOMA IN MANAGEMENT of

there is provision for doing summer internship after III semester. The essential purpose of

this project is to given an exposure and detailed outlook to the student of the practical

concepts, which they already studied research. For this purpose, I was assigned the project for

the “MUTUAL FUND SIMPLIFIED” in ICICI SECURITIES by my project mentor. It is a

matter of great privilege to get training from ICICI SECURITIES, one of the largest

organizations of its kind.

The project lasted for a period of eight weeks; it was informative, interesting, inspiring and

challenging task.

I hope this report will provide an experiment outlook to the dynamic functioning in the

MUTUAL FUND department in securities sector.

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CONTENT

S.No Topics Page no.

1. Declaration

2. Acknowledgement

3 Certificate

4 Preface

5 List of tables

6 List of figures

CHAPTER- I

7 Company profile 10

8 Introduction 10

9 Overview 12

10. Brief about ICICI group 12

11 History of ICICI group 13-19

12 ICICI group companies 20

13 Board of directors 20

14 Vision and mission of ICICI group 21

15 Privacy policy 21

16 Introduction to ICICI direct 22

17 Awards and accolades 23

18 Major Competitors 24

19 ICICI direct trading platforms 24-25

20 Products and service offered by ICICI direct 25-34

21 How is MF set up? 35

22 Advantages and Disadvantages of MF 35-37

23 Different types of MF 38-40

CHAPTER-II

24 Literature Review 42-47

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CHAPTER-III

2

5

Research Methodology 49-53

CHAPTER-IV

2

6

Data Analysis and Interpretation 55-64

CHAPTER-V

2

7

Findings 65

2

8

Suggestions and Recommendations 66

2

9

Conclusion 67

2

8

Bibliography 68-69

2

9

Annexure (questionnaire) 70-72

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CHAPTER -I

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COMPANY PROFILE

Company Name ICICI Securities

Founded In 1995

Parent Company ICICI Limited

Headquarter Mumbai

Chairperson Mrs. Chanda D. Kochhar

Managing Director Mr. Anup Bagchi

Website www.icicisecurities.com

INTRODUCTION

ICICI Securities Limited provides various investment banking products and services to

corporates, financial institutions, and retail investors in India and internationally. It provides

corporate finance services to corporations, financial institutions, financial sponsors, and

government, which include equity capital market products, such as initial public offerings

(IPO), further public offerings, rights offerings, convertible offerings, qualified institutional

placements, non-convertible debentures, buyback, delisting, and open offers and international

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http://www.icicisecurities.com/

offerings for unlisted and listed entities. The company also offers mergers and acquisitions

advisory services; and private equity advisory.

OVERVIEW

ICICI Securities Ltd is an integrated securities firm offering a wide range of services

including investment banking, institutional broking, retail broking, private wealth

management, and financial product distribution. ICICI Securities sees its role as 'Creating

Informed Access to the Wealth of the Nation' for its diversified set of client that includes

corporates, financial institutions, high net-worth individuals, and retail investors.

Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in India and

global offices in Singapore and New York. ICICI Securities Inc., the step-down wholly

owned US subsidiary of the company is a member of the Financial Industry Regulatory

Authority (FINRA) / Securities Investors Protection Corporation (SIPC). ICICI Securities

Inc. activities include Dealing in Securities and Corporate Advisory Services in the United

States. ICICI Securities Inc. is also registered with the Monetary Authority of Singapore

(MAS) and operates a branch office in Singapore.

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Brief about ICICI Group

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at

the initiative of the World Bank, the Government of India and representatives of Indian

industry, with the objective of creating a development financial institution for providing

medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami

Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source

of foreign currency loans to Indian industry. Besides funding from the World Bank and other

multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from

international markets.

History of ICICI group

1986:

ICICI became the first Indian institution to receive ADB Loans.

ICICI, along with UTI, set up Credit Rating Information Services of India Limited,

India's first professional credit rating agency.

ICICI promotes Shipping Credit and Investment Company of India Limited.

1987:

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The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the

first public issue by any Indian entity in the Swiss Capital Market.

1988:

ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth

Development Corporation (CDC), the first loan by CDC for financing projects in

India.

1993:

Promoted TDICI - India's first venture capital company.

1994:

ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set

up.

1996:

ICICI Asset Management Company set up.

ICICI Bank set up.

ICICI Ltd became the first company in the Indian financial sector to raise GDR.

1997:

ICICI merged with ICICI Ltd.

Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.

ICICI Ltd was the first intermediary to move away from single prime rate to three-tier

prime rates structure and introduced yield-curve based pricing.

1998:

The name The Industrial Credit and Investment Corporation of India Ltd changed to

ICICI Ltd.

ICICI Ltd announced the takeover of ITC Classic Finance.

1999:

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Introduced the new logo symbolizing a common corporate identity for the ICICI

Group.

ICICI announced takeover of Anagram Finance.

2000:

ICICI launched retail finance - car loans, house loans and loans for consumer durables

ICICI becomes the first Indian Company to list on the NYSE through an issue of

American Depositary Shares.

2001:

ICICI Bank became the first commercial bank from India to list its stock on NYSE.

The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI

Bank.

2002:

ICICI Ltd merged with ICICI Bank Ltd to create India's second largest bank in terms

of assets.

"E Lobby,” a self-service banking centre inaugurated in Pune. It was the first of its

kind in India.

ICICI Bank launched Private Banking.

1100-seat Call Centre set up in Hyderabad

ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of

housing projects in the county, launched in Pune,

ATM-on-Wheels, India's first mobile ATM, launched in Mumbai.

2003:

The first Integrated Currency Management Centre launched in Pune.

ICICI Bank announced the setting up of its first ever-offshore branch in Singapore.

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The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai,

launched.

ICICI Bank's UK subsidiary launched.

India's first ever "Visa Mini Credit Card,” a 43% smaller credit card in dimensions

launched.

ICICI Bank subsidiary set up in Canada.

Temasek Holdings acquired 5.2% stake in ICICI Bank.

ICICI Bank became the market leader in retail credit in India.

2004:

Max Money, a home loan product that offers the dual benefit of higher eligibility and

affordability to a customer, introduced

Mobile banking service in India launched in association with Reliance Infocomm.

India's first multi-branded credit card with HPCL and Airtel launched.

Kisaan Loan Card and innovative, low-cost ATMs in rural India launched.

2005:

ICICI Bank and CNBC TV 18 announced India's first ever awards recognizing the

achievements of SMEs, a pioneering initiative to encourage the contribution of Small,

and Medium Enterprises to the growth of Indian economy.

ICICI Bank opened its 500th branch in India.

ICICI Bank introduced partnership model wherein ICICI Bank would forge an

alliance with existing micro finance institutions (MFIs). The MFI would undertake the

promotional role of identifying, training and promoting the micro-finance clients and

ICICI Bank would finance the clients directly on the recommendation of the MFI.

ICICI Bank introduced the concept of floating rate for home loans in India.

First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.

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"Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit

Cards were waived off.

ICICI Bank and Visa jointly launched mChq- a revolutionary credit card on the

mobile phone.

Private Banking Masters 2005, a nationwide Golf tournament for high net worth

clients of the private banking division launched. This event is the largest domestic

invitation amateur golf event conducted in India.

ICICI Bank became the largest bank in India in terms of its market capitalization.

2006:

ICICI Bank became the first private entity in India to offer a discount to retail

investors for its follow-up offer.

ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the

international markets.

ICICI Bank subsidiary set up in Russia.

2007:

Introduced a new product - 'NRI smart save Deposits' – a unique fixed deposit scheme

for nonresident Indians.

Representative offices opened in Thailand, Indonesia, and Malaysia.

ICICI Bank became the largest retail player in the market to introduce a biometric

enabled smart card that allows banking transactions to be conducted on the field. A

low-cost solution, this became an effective delivery option for ICICI Bank's micro

finance institution partners.

Financial counseling centre Disha launched. Disha provides free credit counseling,

financial planning, and debt management services.

Sangli Bank amalgamated with ICICI Bank.

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ICICI Bank raised Rs 20,000 crore (approx. $5 billion) from both domestic and

international markets through a follow-on public offer.

ICICI Bank's GBP 350 million international bond offering marked the inaugural deal

in the sterling market from an Indian issuer and also the largest deal in the sterling

market from Asia.

Launched India's first ever jewellery card in association with jewelry major Gitanjali

Group.

ICICI Bank became the first bank in India to launch a premium credit card -- The

Visa Signature Credit Card.

Introduced SME Toolkit, an online resource centre, to help small and medium

enterprises start, finance, and grow their business.

ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan

agreement in Singapore.

ICICI Bank became the first private bank in India to offer both floating and fixed rate

on car loans, commercial vehicles loans, construction equipment loans, and

professional equipment loans.

In a first of its kind, nationwide initiative to attract bright graduate students to pursue

a career in banking, ICICI Bank launched the "Probationary Officer Program.”

Launched Bank@home services for all savings and current a/c customers residing in

India

ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

2008:

ICICI Bank enters US, launches its first branch in New York.

ICICI Bank enters Germany, opens its first branch in Frankfurt.

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ICICI Bank launched iMobile, a breakthrough innovation in banking where

practically all internet-banking transactions can now be simply done on mobile

phones.

ICICI Bank concluded India's largest ever securitization transaction of a pool of retail

loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a

multi-tranche issue backed by four different asset categories. It is also the largest deal

in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan &

Australia) since the beginning of 2007

2009:

Ms.Chanda D Kochhar appointed the Managing Director and CEO of ICICI Bank

Ltd.

ICICI Bank and Singapore Airlines launch "ICICI Bank Singapore Airlines Visa

Platinum Credit Card"

ICICI Bank ties up with BSNL Cell One for bill payments

2010:

ICICI Bank launches website in Hindi.

ICICI Bank opens first retail branch in Singapore.

RBI approves the amalgamation of Bank of Rajasthan Ltd with ICICI Bank Ltd.

First private sector Bank to inaugurate its 2000 Branch.

ICICI Bank gets Qualified Full Banking privileges in Singapore

2011:

ICICI Bank offers cash withdrawal at POS terminals

ICICI Bank & Vodafone Essar ink pact for financial inclusion

ICICI Bank & Aircel sign MoU for financial inclusion

ICICI Bank & Indian Army sign MoU for banking services

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ICICI Bank and Intuit launch "Money Manager"

ICICI Bank launches EMV Standard Cards

ICICI Bank Limited Opens Second Retail Branch in Singapore

ICICI Bank launches the first dual Platinum Credit Card

ICICI Bank closes the first rupee Credit Default Swap transaction

2012:

ICICI Bank opens its second branch in Hong Kong

ICICI Bank rolls out 25 electronic branches and launches many next generation

banking solutions

ICICI Bank was the first private sector bank in India to offer PPF account facility at

all bank branches.

Among the first banks to introduce account portability and also the only bank to offer

portability on two additional channels - Internet banking and Phone Banking.

ICICI Bank launches first Electronic Toll Collection project on NH-1. A first of its

kind project initiated by the Ministry of Road, Transport & Highways, National

Highway Authority of India (NHAI) and ICICI Bank.

ICICI Bank receives approval from RBI to set up an Infrastructure Debt Fund. It is the

first debt fund to get government's go ahead.

ICICI Bank launches its official Facebook Page. First bank in India to offer one-of-its

kind "Your Bank Account" App, which allows access to bank account information on

Facebook.

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ICICI Group Companies

ICICI Bank

ICICI Prudential Life Insurance Company

ICICI Securities Limited

ICICI Securities Primary Dealership Limited

ICICI Lombard General Insurance Company

ICICI Prudential Asset Management Company

ICICI Venture

ICICI Home Finance Company

Board of Directors

ICICI Securities Limited ICICI Securities Holding Inc. ICICI Securities, Inc.Ms. Chanda D. Kochhar, Chairperson Mr. Sanker Parameswaran,

DirectorMr. Anup Bagchi, Chairman

Mr. Uday Chitale, Independent Director

Mr. Sriram Iyer, Director Mr. Ajay Saraf

Mr. Vinod Kumar Dhall, Independent Director

Mr. Warren Law Mr. Subir Saha

Ms. Zarin Daruwala Mr. Jaideep GoswamiMs. Shilpa Kumar Mr. Bishen Pertab

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Mr. Anup Bagchi, Managing Director & CEO

Mr. Robert Ng

Mr. Ajay Saraf, Executive Director

Vision & Mission of ICICI group

Vision: To be the leading service provider of financial services in India.

Mission: We will leverage our people, technology, speed and financial capital to:

Be the banker of first choice for our customers by delivering high quality, excellent

products and services.

Expand the frontiers of our business globally.

Play a proactive role in the full realisation of India’s potential.

Maintain a healthy financial profile and diversify our earnings across businesses and

geographies.

Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which we operate.

Create value for our stakeholders.

Privacy Policy

ICICI is strongly committed to protecting the privacy of its customers.

DNC (Don't Call Registry)

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ICICI do respect your privacy, and appreciate that some of you may not want to be contacted

over the phone for our telemarketing activities. If this is the case with you, you may use the

Do Not Call form given below and register your phone number(s) that you want excluded

from our telemarketing list. The details that you enter in the form will remain confidential

Code of Conduct and Business Ethics

ICICI Group expects all its employees, officers and directors to act in accordance with high

professional and ethical standards.

Introduction to ICICI Direct

ICICIDirect is an online trading and investment platform on ICICI Securities, the largest

stock broker firm in India providing a wide range of investment options to the retail and

institutional customers. ICICI Securities is part of ICICI Group, India's top financial service

provider offering banking and other financial services.

ICICI Securities (I-Sec) is the top equity house in India with over 20 lakh customers.

ICICIDirect.com is the flagship website of I-Sec. This website was the first online trading

platform lunched in India to provide browser based equity, commodity and currency trading;

all under one login.

ICICIdirect.com is the most visited investment portal in India and by NRI's living across

countries. It is one website, which provides options to invest in over 20 financial products

including Equity, Derivatives, Currency Futures, IPO, Mutual Funds, ETF, Fixed Deposits,

Loans, Tax Services, New Pension Systems and Insurance.

ICICI direct also provide current stock market information which includes stock prices, news,

market research reports, stocks tips, events, IPO News and company results. Its 'Centre for

Financial Learning' initiative offers number of online and classroom programs for investors.

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The 3-in-1 account, which includes ICICI Bank Account, ICICI Direct Trading Account and

ICICI Demat Account, is the best offering for retail investors in India as it provides easiest

way to invest in stock market and other financial instruments. The customers can visit any of

the over 1500 ICICI Bank branches to get help on financial products which are sold through

ICICI direct.

Awards and accolades

Franchisor of the year award 2009

Retail concept of the year awards 2009

ICICIDirect wins the prestigious Outlook Money - India's Best e-Brokerage House for

2009.

ICICIDirect has also won the CNBC AWAAZ Consumer Award for the Most

Preferred Brand of Financial Advisory Services.

ICICIDirect been winning the prestigious Outlook Money - India's Best e-Brokerage

House for 2003-2004, 2004-2005, 2006-2007 and 2007-2008.

ICICIDirect wins the prestigious Outlook Money - India's Best e-Brokerage House for

2008.

ICICIDirect, the neighborhood financial superstore won the prestigious Franchise

India `Service Retailer of the Year 2008 award.

Best Broker - Web 18 Genius of the Web Awards 2007

CMO Asia Awards for Excellence in Branding and Marketing –

Brand Leadership Award (overall)

'Campaign of the Year' for the Trade Racer Campaign

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Brand Excellence in Banking and Financial Services for the store format

Award for Brand Excellence in the Internet Business

Frost and Sullivan Award for Customer Service Leadership

Major Competitors

HDFC Securities

Kotak Securities

SBI Capital

Sharekhan Broker

IDBI Capital

HSBC InvestDirect

Angel Broking

Indiabulls Services

Reliance Securities

Bajaj Capital

ICICI Direct's Trading Platforms

ICICI Direct offers 2 trading platforms to its customers:

Share Trading Account (Website Based Trading)

Website based online Share Trading Account by ICICIDirect is primarily for buying and

selling of stocks at BSE and NSE.

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The ICICIDirect website allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot

Trading, Buy Today Sell Tomorrow, IPO Investment, Mutual Fund Investment etc.

ICICIDirect.com website is the primary Investment vehicle of ICICI Limited.

Trade Racer (Trading Terminal)

Trade Racer is a power packed Trading platform, which provides an investor with Live

streaming quotes & Research Calls, integrated fund transfer system along with multiple

watch list facility. Investor can also do technical analysis with the help advance charting

tools. Single Order entry page for Equities and Derivatives, Technical Analysis, Integrated

Fund Transfer System, Customized Interface, Intra-day and EOD Charts and Shortcut keys

for faster access to markets are some of the key features of Trade Racer Terminal

Products & Services

Equity

ICICIdirect.com offers various options while trading in shares.

Cash Trading: This is a delivery based trading system, which is generally done with the

intention of taking delivery of shares or monies.

Margin Product : Investor can also do an intra-settlement trading up to 3 to 4 times available

funds, wherein Investor take long buy/ short sell positions in stocks with the intention of

squaring off the position within the same day settlement cycle.

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MarginPLUS Product : Through Margin PLUS Investor can do an intra-settlement trading

up to 25 times your available funds, wherein Investor take long buy/ short sell positions in

stocks with the intention of squaring off the position within the same day settlement cycle.

Margin PLUS will give a much higher leverage in Investor account against his limits.

CallNTrade: CallNTrade allows Investor to call on a local number in your city & trade on

the telephone through our Customer Service Executives. This facility is currently available in

over 11 major states across India.

Trading on NSE/BSE: Through ICICIdirect.com, can trade on NSE as well as BSE.

Market Order: Investor could trade by placing market orders during market hours that allows

to trade at the best obtainable price in the market at the time of execution of the order.

Limit Order: Allows to place a buy/sell order at a price defined by Investor. The execution

can happen at a price more favorable than the price, which is defined by Investor, limit orders

can be placed by Investor during holidays & non-market hours too.

Derivatives

Futures: Through ICICIdirect.com, investor can now trade in index and stock futures on the

NSE. In futures trading, investor takes buy/sell positions in index or stock contracts having a

longer contract period of up to 3 months.

Trading in FUTURES is simple! If, during the course of the contract life, the price moves in

investor favor (i.e. rises in case investor has a buy position or falls in case investor has a sell

position), make a profit.

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Presently only selected stocks, which meet the criteria on liquidity and volume, have been

enabled for futures trading.

Calculate Index and Know your Margin are tools to help you in calculating investor margin

requirements and the index & stock price movements. The Centre for Financial Learning is a

comprehensive guide on futures and options trading.

OPTIONS

An option is a contract, which gives the buyer the right to buy or sell shares at a specific

price, on or before a specific date. For this, the buyer has to pay to the seller some money,

which is called premium. There is no obligation on the buyer to complete the transaction if

the price is not favorable to him.

To take the buy/sell position on index/stock options, investor has to place certain percentage

of order value as margin. With options trading, investor can leverage on his trading limit by

taking buy/sell positions much more than what he could has taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying

Asset at the specified strike price by paying a premium whereas the Seller of the Call has the

obligation of selling the Underlying Asset at the specified Strike price.

The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset

at the specified strike price by paying a premium whereas the Seller of the Put has the

obligation of buying the Underlying Asset at the specified Strike price.

Currency Derivatives

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ICICI Direct offers a simple and convenient way to trade and hedge currency risk in four pair

of Currencies- Dollar, Euro, Pound and Japanese Yen against Indian Rupee.

By offering the choice of trading in different asset class of Currencies ICICI Direct offers the

opportunity to diversify investor portfolio.

The benefits of choosing ICICI Direct for your Currency Trading are:

Convenience - Provides a well-diversified set platform for online trading with competitive

brokerage under a single sign-on and completely paper-less investing experience

Expertise - Investor can access Daily Research Reports as well as Fundamental & Technical

Reports and Advisory.

Flexibility – Investor can select the Currency Pair USD/INR, EUR/INR, GBP/INR and

JPY/INR in which he wish to trade

Few Advantages of this market are

Trading hours of 09:00 am to 05:00 pm provide more trading opportunities

Trade in prominent currencies like US Dollar, EURO, Pound, and Yen against Indian Rupee

Real time and Transparent Currency Rates in comparison to OTC Rates.

No Counterparty Default risk due to settlement guarantee by regulated clearing house.

Low Taxation (No STT and CTT)

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Daily Cash Settlement in INR via MTM (Mark to Market)

The benefits of choosing ICICI Direct for investment in mutual funds are:

Convenience - Provides a well-diversified set of investment products under a single sign-on

and completely paper-less investing experience.

Expertise - Investor can access some of the researched funds selected based on rigorous

criterion.

Flexibility - Investor may select the fund that best suits his need

Exchange Traded Funds

Exchange Traded Funds or ETFs are securities that are traded, like individual stocks, on an

exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout

the trading day like any stock.

Most ETFs charge lower annual expenses than many mutual funds. As with stocks, one must

pay a brokerage to buy and sell ETF units.

ICICI direct advantage:

The benefits of choosing ICICI direct for ETF investment are:

Invest in a paperless manner

No need to cut cheque

Get instant confirmation & Calculate capital gains at click of a button

Check portfolio for realized and unrealized profit/loss

Life Insurance

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Wealth insurance ensures that investor receives a lump sum amount of money at the maturity of

the Policy. In the unfortunate event of death during the term of the policy, investor family

receives lump sum amount, called the Sum Assured. Thus it combines the benefits of protection

and saving in a single instrument. In ULIP policies, the investment risk in the investment

portfolio is borne by the policy holder.

Conditions Apply: Guaranteed benefits are available only if all premiums are paid as per the

premium payment term and the policy is in-force till the completion of entire policy term.

PRODUCT SUITABILITY FEATURES

Min/Max age at entry 0/69 years depending on PPT

For anyone who is looking for Equity or Debt linked savings plan.

A unit-linked, non-participating, savings and protection oriented insurance plan.Pay premiums for a limited period or for the entire policy term.Invest in Funds of choice or opt for Life Cycle based Portfolio strategy.

Min/Max age at entry 0/69 years depending On PPT.

For anyone who is looking to save Rs. 2 lac or more in a Equity or Debt linked savings plan.

A unit-linked, non-participating, savings and protection oriented insurance plan

Flexibility of Premium Payment term

Choose between different Equity or debt funds

Min/Max age at entry 0/70 years depending on PPT.

For anyone who is looking to save Rs. 5 lac or more in a Equity or Debt linked savings plan.

A unit-linked, non-participating, savings and protection oriented insurance planChoose between different Equity or debt fundsEnjoy Guaranteed loyalty additions which enhance your returnsWealth Boosters to enhance your savings

Min/Max age at entry 1Pay - 8/70; 5 pay - 8/60 years.

For anyone who is looking to invest into equity and yet wants his/her capital to be protected.

Protect savings from market downturns through an Assured BenefitPay premium just once or for a limited period of 5 yearsGet rewarded with Loyalty Additions and Wealth Booster

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Min/Max age at entry 5Pay -3; 7pay - 1; 10PAY - 0 / 65 years.

For anyone who is looking for Guaranteed regular income

A savings and protection oriented plan.

Pay premiums for just 5, 7 or 10 years.Get Cash Benefits Guaranteed for next 10 years.Guaranteed Maturity Benefit plus bonuses at maturity for long term goals.Life cover to protect family's future

Min/Max age at entry 0/60 years.

For anyone who is looking for guarantee in a savings cum Insurance plan

A participating savings and protection oriented planGuaranteed Maturity Benefit + Guaranteed Additions at maturityPay premiums for a limited period or for the entire policy term.

General Insurance

General Insurance products cover Health, Home, Motor and Travel, and help protect financial

health unforeseen events strike close to home. ICICI Lombard is the leading private general

insurance company and has one of the best products.

Partnership with ICICI Lombard enables to bring the entire range of insurance offerings

personal and professional needs, with minimal paperwork and at the comfort of home or

office. Select products can be entirely bought online on ICICIdirect.com with instant policy

issuance.

Fixed Deposits & Bonds

Corporate Fixed Deposits: - ICICI Direct offers a range of Corporate Fixed Deposits

varying in tenures, interest rates & institutions to suit investment needs. The deposit schemes

have been specially chosen from high-safety options to ensure that customers enjoy the twin

benefits of returns and protection.

Why opt for Corporate Fixed Deposits?

31 | P a g e

If risk appetite is low, fixed deposits are perfect. Since most of the instruments are

rated, corporate fixed deposits have a very high safety level.

Attractive returns at interest rates higher than bank’s Fixed Deposits.

Higher Interest rates for senior citizens.

High liquidity; most of these issuers offer 75% of the investment amount as loan @

2% over the interest rate on the deposit, as well as a pre-mature withdrawal Option.

Potential to earn compounding interest on money by reinvesting the principal amount

along with the interest earned.

Flexible tenure - there are various tenures ranging from 1 to 7 years.

Bonds:-

Bond refers to a security issued by a company, financial institution or government, which

offers regular or fixed payment of interest in return on the amount, borrowed money for a

certain period.

Thus by purchasing a bond, investor loans money for a fixed period at a predetermined

interest rate. While the interest is paid to the bond holder at regular intervals, the principal

amount is repaid later, known as the maturity date. While both bonds and stocks are

securities, the principle difference between the two is that bond holders are lenders, while

stockholders are the owners of the organization. Another difference is that bonds usually have

a defined term, or maturity, after which the bond is redeemed, whereas stocks may be

outstanding indefinitely.

Customer also has the option of recurring interest along with Principal i.e. Cumulative

Interest. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender

(creditor), and the coupon is the interest. Bonds provide the borrower with external funds to

32 | P a g e

finance long-term investments, or, in the case of government bonds, to finance current

expenditure. Bonds must be repaid at fixed intervals over a period.

ELocker

ICICIdirect.com's eLocker helps with the convenience and flexibility to store and retrieve

important documents when need them. Can store scanned copies of Passport, PAN,

Agreements or even medical reports securely under your ICICI direct account. ELocker helps

eliminate to carry copies of important documents either as a physical photo copy or in storage

devices like Compact Disks, USB token etc. With eLocker, can store documents in one

central secure location and know that documents are just a few clicks away.

Key Benefits:

Secure and Accessible - eLocker ensures that documents are secure and accessible

only via a secure login.

Anywhere, anytime access - eLocker is available from anywhere, via an Internet

connection under ICICI direct account login.

Durability and Longevity - Storage of documents in CD's or other portable media is

prone to handling them with care, eLocker lets store documents online, which ensures

durability and longevity.

No storage or retrieval hassles - Since documents are stored in a digital format under

ICICI direct account, the account is available to you wherever you go.

Trade Racer

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Trade Racer is a trading platform, which provides live streaming quotes & Research Calls,

integrated fund transfer system along with multiple watch list facility. Power-packed with

new features, Trade Racer gives the power to identify market opportunities while enjoying

the attractive new look and feel of the trading terminal.

National Pension System (NPS)

Pension Fund Regulatory and Development Authority (PFRDA) was established by the

Government of India on August 23, 2003 to promote old age income security by establishing,

developing and regulating pension funds, to protect the interests of subscribers to schemes of

pension funds and for matters connected therewith or incidental thereto.

The NPS is a new voluntary contributory pension scheme introduced by the Central

Government. Under the National Pension System, individuals can open a personal retirement

account and can accumulate a pension corpus during their work life to meet financial needs

post retirement. These contributions would grow and accumulate over the years, depending

on the returns earned on the investment made. When the person retires, he will be able to use

these savings to take care of the needs and expenses of his family during old age. The

subscribers may use the accumulated pension wealth under the scheme to purchase a life

34 | P a g e

annuity from a life insurance company. Alternatively, depending on the age of the subscriber,

a part of the wealth may be withdrawn as lump-sum.

ICICI Securities Limited (I-Sec) has obtained the Point of Presence (POP) Registration

Certificate from PFRDA to offer NPS accounts. Any individual customer of icicidirect.com

desiring to open an NPS account t can do so by clicking on "Subscribe NPS" and fulfilling

the prerequisite process.

SEBI regulations require that at least two thirds of the directors of trustee company or board

of trustees must be independent i.e. they should not be associated with the sponsors. In

addition, 50 per cent of the directors of AMC must be independent. All Mutual Funds are

required to be registered with SEBI before they launch any scheme.

How is a Mutual Fund set up?

A Mutual Fund is set up in the form of a trust, which has a sponsor, trustees, and asset

management company (AMC) and custodian. The trust is established by a sponsor or more

than one sponsor who is like a promoter of a company. The trustees of the Mutual Fund hold

its property for the benefit of the unit holders. Asset Management Company (AMC) approved

by SEBI manages the funds by making investments in various types of securities. Custodian,

who is registered with SEBI, holds the securities of various schemes of the fund in its

custody. The trustees are vested with the general power of superintendence and direction over

AMC. They monitor the performance and compliance of SEBI regulations by the Mutual

Fund.

Advantages of mutual funds

Mutual funds have designed to provide maximum benefits to investors, and fund manager

have research team to achieve schemes objective. Assets Management Company has different

35 | P a g e

type of sector funds, which need to proper planning for strategic investment and to achieve

the market return.

Portfolio Diversification

Mutual Funds invest in a well-diversified portfolio of securities, which enables investor to

hold a diversified investment portfolio (whether the amount of investment is big or small).

Professional Management

Fund manager undergoes through various research works and has better investment

management skills, which ensure higher returns to the investor than what he can manage on

his own.

Less Risk

Investors acquire a diversified portfolio of securities even with a small investment in a

Mutual Fund. The risk in a diversified portfolio is lesser than investing in merely 2 or 3

securities.

Low Transaction Costs

Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser

transaction costs. These benefits are passed on to the investors.

Liquidity

An investor may not be able to sell some of the shares held by him very easily and quickly,

whereas units of a mutual fund are far more liquid.

Choice of Schemes

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Mutual funds provide investors with various schemes with different investment objectives.

Investors have the option of investing in a scheme having a correlation between its

investment objectives and their own financial goals. These schemes further have different

plans/options

Transparency

Funds provide investors with updated information pertaining to the markets and the schemes.

All material facts are disclosed to investors as required by the regulator.

Flexibility

Investors also benefit from the convenience and flexibility offered by Mutual Funds.

Investors can switch their holdings from a debt scheme to an equity scheme and vice-versa.

Option of systematic (at regular intervals) investment and withdrawal is also offered to the

investors in most open-end schemes.

Safety

Mutual Fund industry is part of a well-regulated investment environment where the interests

of the investors are protected by the regulator. All funds are registered with SEBI and

complete transparency is forced.

Disadvantages of mutual funs

The mutual fund not just advantage of investor but also has disadvantages for the funds. The

fund manager not always made profits but might create loss for not properly managed. The

fund have own strategy for investment to hold, to sell, to purchase unit at particular time.

Costs Control Not in the Hands of an Investor

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Investor has to pay investment management fees and fund distribution costs as a percentage

of the value of his investments (as long as he holds the units), irrespective of the performance

of the fund

No Customized Portfolios

The portfolio of securities in which a fund invests is a decision taken by the fund manager.

Investors have no right to interfere in the decision making process of a fund manager, which

some investors find as a constraint in achieving their financial objectives.

Difficulty in Selecting a Suitable Fund Scheme

Many investors find it difficult to select one option from the plethora of funds/schemes/plans

available. For this, they may have to take advice from financial planners in order to invest in

the right fund to achieve their objectives.

Different types of Mutual funds

(A) On the basis of Objective:

Equity Funds/ Growth Funds: Funds that invest in equity shares are called equity

funds. 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 linked to the stock markets. 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.

Diversified funds: These funds invest in companies spread across sectors. These

funds are generally meant for risk-taking investors who are not bullish about any

particular sector.

38 | P a g e

Sector funds: These funds invest primarily in equity shares of companies in a

particular business sector or industry. These funds are targeted at investors who are

extremely bullish about a particular sector.

Index funds: These funds invest in the same pattern as popular market indices like

S&P 500 and BSE Index. The value of the index fund varies in proportion to the

benchmark index.

Tax Saving Funds: These funds offer tax benefits to investors under the Income Tax

Act. Opportunities provided under this scheme are in the form of tax rebates U/s 88 as

well saving in Capital Gains U/s 54EA and 54EB. They are best suited for investors

seeking tax concessions.

Debt / Income Funds: These Funds invest predominantly in high-rated fixed-income-

bearing instruments like bonds, debentures, government securities, commercial paper

and other money market instruments. They are best suited for the medium to long-

term investors who are averse to risk and seek capital preservation. They provide

regular income and safety to the investor.

Liquid Funds / Money Market Funds: These funds invest in highly liquid money

market instruments. The period of investment could be as short as a day. They provide

easy liquidity. They have emerged as an alternative for savings and short-term fixed

deposit accounts with comparatively higher returns. These funds are ideal for

Corporates, institutional investors and business houses who invest their funds for very

short periods.

Gilt Funds: These funds invest in Central and State Government securities. Since

they are Government backed bonds they give a secured return and also ensure safety

of the principal amount. They are best suited for the medium to long-term investors

who are averse to risk.

39 | P a g e

Balanced Funds: These funds invest both in equity shares and fixed-income-bearing

instruments (debt) in some proportion. They provide a steady return and reduce the

volatility of the fund while providing some upside for capital appreciation. They are

ideal for medium- to long-term investors willing to take moderate risks.

Hedge Funds: These funds adopt highly speculative trading strategies. They hedge

risks in order to increase the value of the portfolio.

(B) On the basis of Flexibility

Open-ended Funds: These funds do not have a fixed date of redemption. Generally

they are open for subscription and redemption throughout the year. Their prices are

linked to the daily net asset value (NAV). From the investors' perspective, they are

much more liquid than closed-ended funds. Investors are permitted to join or

withdraw from the fund after an initial lock-in period.

Close-ended Funds: These funds are open initially for entry during the Initial Public

Offering (IPO) and thereafter closed for entry as well as exit. These funds have a

fixed date of redemption. One of the characteristics of the close-ended schemes is that

they are generally traded at a discount to NAV; but the discount narrows as maturity

nears. These funds are open for subscription only once and can be redeemed only on

the fixed date of redemption. The units of these funds are listed (with certain

exceptions), are tradable and the subscribers to the fund would be able to exit from the

fund at any time through the secondary market.

Interval funds: These funds combine the features of both open-ended and close-

ended funds wherein the fund is close ended for the first couple of years and open-

40 | P a g e

ended thereafter. Some funds allow fresh subscriptions and redemption at fixed times

every year (say every six months) in order to reduce the administrative aspects of

daily entry or exit, yet providing reasonable liquidity

(c) On the basis of geographic location

Domestic funds: These funds mobilize the savings of nationals within the country.

Offshore Funds: These funds facilitate cross border fund flow. They invest in

securities of foreign companies. They attract foreign capital for investment.

CHAPTER -II

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LITERATURE REVIEW

Sahil Jain measured the performance of the equity based mutual funds in India. The assets

under management in this industry is more than Rs 6.8 thousand billion. The Indian market is

flooded with more than a thousand mutual fund schemes, promising better returns than

others. A total of 45 schemes offered by 2 private sector companies and 2 public sector

companies, have been studied over the period April 1997 to April 2012 (15 years). The

analysis has been made using the risk-return relationship and Capital Asset Pricing Model

(CAPM). The overall analysis finds that HDFC and ICICI have been the best performers,

UTI an average performer and LIC the worst performer which gave below- expected returns

on the risk-return relationship.

According to CRISIL Mutual Fund Year book Apr 2013, In 2012 Equities emerged as the

star performer with the benchmark CNX Nifty gaining 28%. The debt market too performed

well with long-term debt funds gaining prominence due to some easing of monetary stance by

the Reserve Bank of India (RBI) and expectations of further easing by the central bank to

pump prime the economy. The mutual fund industry’s average assets under management

(AUM) grew by 15% in 2012 to Rs 7.87 trillion in December 2012; debt funds’ AUM rose by

42 | P a g e

over 26% to Rs 5.34 trillion and equity funds’ AUM by 19% to Rs 1.92 trillion. The focus on

retail investors and improving the penetration of mutual funds continued through the year

with Securities and Exchange Board of India (SEBI) announcing various guidelines to

promote investor education, reduce operational bottlenecks and costs. The regulator directed

fund houses to allocate 2 basis points of their AUM towards investor education initiatives.

Further, SEBI doled out incentives to fund houses that distribute their products beyond the

top 15 cities. Single plan structures and introduction of direct plans were other investor

friendly measures introduced by the regulator.

Vijayalakshmi Sundar measured that Mutual funds in India are becoming an ideal investment

choice compared to safe investments such as Fixed Deposits and postal which gives

comparatively low returns. Since the year 2003 from which the present stage of bull run in

the Indian capital markets began, the mutual fund industry While the growth in terms of the

AUM was subdued over the period from 2009-2013, it has gained unprecedented momentum

over the four year period until March 2013. The growth of the capital markets in terms of

BSE -30 shares Sensex has been still higher, and the banking sector has been on a roll over

the last couple of years, throwing up huge opportunities for wealth creation on the way. As

the Indian economy does well with over recent times, banks tend to be one of the biggest

beneficiaries. In fact, post the global financial crisis of 2008 and 2009, the banking index

delivered a return of 82% during May 2009 until October 2010, compared to a return of 40%

delivered by the broader market. Investment in banking sector funds is one of the best avenue

which guarantees stable return with medium risk when compare to other sectors.

Jafri Arshad Hasan measured that Indian mutual fund industry is going through a very crucial

phase because of the changing regulations and confusing atmosphere. In this study he discuss

43 | P a g e

the impact of regulatory changes by SEBI on mutual fund industry and it’s after affects. It

will also throw some light on the international factors that affected Indian mutual fund

industry and its sentiments. At the end of the, there will be some suggestions for the

regulator, the intermediaries and the Investors. This is an attempt to minimize the level of

negativity and pessimism from the market and to create an atmosphere of trust, information

and optimism.

According to CII, all efforts at the moment are being synchronized towards attaining the

objective of financial inclusion. The drive to expand reach beyond Tier 1 cities and make

mutual fund offerings available to people in smaller towns and cities has indeed taken up the

attention of the industry. However, several components of such an initiative, like investor

awareness, broadening investor participation and product innovation, need to be aligned in

order to fully establish inclusive growth. The industry needs to give due emphasis on the

above factors, drawing out an efficient business and operating model to ensure that the

inherent challenges that the industry is facing is efficiently dealt with. Designing a competent

and all pervasive business model has all the more become important in the current scenario of

changing business and regulatory legislations.

According to KPMG report, The Mutual fund industry needs to have an ‘outside-in’

perspective as compared to ‘inside-out’ perspective. Understanding investors’ needs should

be followed by a product channel alignment. A number of change catalysts discussed in the

previous section like technology, investment in B-15 cities, investment adviser etc. would be

required to help ensure the overall objective of prudent growth and profitability. Increasing

financial literacy will be the key to unlock the doors to B-15 and also to remove the

44 | P a g e

perception that equates mutual fund to only equity. Investor awareness campaigns should be

conducted to increase the AUM in smaller cities which would help industry to progress in a

holistic manner. AMC, distributors and IFAs are all doing their bit but AMFI and SEBI

should also play a major role in creating awareness. Knowledge about mutual fund industry

should be included in educational curriculum. For future growth, tax could act as an enabler

as tax benefits can be a pull factor for investors. The future potential of Investment Advisors

could be decided by Investors and the regulators. Presence of an unbiased advisor could build

investor trust on the one hand and reward performing products on the other.

According to CII Mutual fund summit 2013, the outlook of the mutual fund industry is

governed to a great extent by the economic situation in the country. The current economic

scenario with sticky inflation and rising fuel prices is likely to adversely impact perceptions,

resulting in depressed equity inflows into the market. They believe that the mutual fund

industry manifests huge opportunity for growth and further penetration, and this can be

achieved over time, with support from technology. The key lies in strengthening distribution

networks and enhancing levels of investor education to increase presence in rural areas. In

terms of opportunity, the infrastructure debt market has become very attractive, luring

investors to invest in this space.

According to Ms. Avani shah, Faculty Shree Chimanbhai Patel Institute of Management and

Research, Ahmedabad, and Dr. Narayan baser Associate Professor, Shri Jairambhai Patel

Institute of Management and Computer Application, Ghandhinagar, found that 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. Being a part of financial markets although

mutual funds industry is responding very fast by analyze investor’s perception and

45 | P a g e

expectations. In their study research of 305 mutual fund investors was conducted in

Ahmedabad using non-probability convenience sampling. After using One-Way ANNOVA,

researcher had come to a conclusion that Funds reputation, Withdrawal facilities, brand

name, Sponsor’s past performance in terms of risk & return varies among the investors of

different age group & investor’s different occupation group.

According to Prof Gauri Prabhu Associate Professor AISSMS Institute of Management, Pune

and Dr. N.M. Vechalekar Associate Dean, IndSearch, Pune, the Mutual Funds provide a

platform for a common investor to participate in the Indian capital market with professional

fund management irrespective of the amount invested. The Indian mutual fund industry is

growing rapidly and this is reflected in the increase in Assets under management of various

fund houses. Mutual fund investment is less risky than directly investing in stocks and is

therefore a safer option for risk averse investors. Monthly Income Plan funds offer monthly

returns and invest majorly in debt oriented instruments with little exposure to equity.

However it has been observed that most of the investors are not aware of the benefits of

investment in mutual funds. This is reflected from the study conducted in this research paper.

This paper makes an attempt to identify various factors affecting perception of investors

regarding investment in Mutual funds.

According to Deepti Goel Dept. of Economics, Assistant Professor, PGDAV College, D.U.,

India and Richa Gupta Dept. of Commerce Assistant Professor PGDAV College, D.U., India

found that the landscape of the financial sector in India is continuously evolving, accredited

46 | P a g e

to regulatory changes being undertaken, which is leading market participant like the asset

management companies (AMCs) and distributors to restructure their strategies and adopt

business models which will yield sustainable benefits. Some of the other trends which have

emerged strongly over the past year are heavy outflows triggered by market volatility and

partnering of asset management companies with banks, to increase the strength of distribution

networks.

According to Anand Singh Research Scholar, Faculty of Commerce, B.H.U, Varanasi and

Prof. C.P Mall, Professor, Faculty of Commerce, B.H.U, Varanasi found that investors are

pooled together for investment in a diversified portfolio of securities to spread risk and to

ensure steady returns. These funds bring a wide variety of securities within the reach of the

most modest of investors. It is essentially a mechanism of pooling together savings of large

number of investors for collective investment with an approved objective of attractive yield

and appreciation in value. The Mutual Funds offers different investment objectives such as

growth, income and Tax planning. In the recent times the Indian Capital Market has

witnessed new trends, one of them being the spectacular growth of Mutual Funds. There are

more than 600 schemes offered by Mutual Funds, and these funds have mobilized substantial

amount of the household savings.

47 | P a g e

CHAPTER- III

48 | P a g e

RESEARCH METHODLOGY

Research methodology is a methodology for collecting all sorts of information & data

pertaining to the subject in question. The objective is to examine all the issues involved &

conduct situational analysis. The methodology includes the overall research design, sampling

procedure & fieldwork done & finally the analysis procedure. The methodology used in the

study consistent of sample survey using primary data. The primary data has been collected

with the help of questionnaire. The questionnaire has been drafted & presented by the ICICI

Securities, which was in online mode

PROBLEM OF THE STUDY

Most of the customers of ICICI Mutual Fund simplified are inactive for long time.

For improving their service.

For creating awareness of their updated website among their existing customer.

To know about their future investment.

OBJECTIVE OF STUDY

To create awareness to its customer about Mutual Fund.

To make them aware of online portfolio of ICICI Direct.

To know about response of the customer for future investments in mutual fund.

SCOPE OF THE STUDY

49 | P a g e

All the analysis and suggestions are based on the analysis of the primary data, which I

will collect with the help of questionnaire.

A big boom has been witnessed in Mutual Fund Industry in recent times. A large

number of new players have entered the market and trying to gain market share in this

rapidly improving market.

The research was carried on in Kailash Colony. I had been sent at Kailash Colony

branch of ICICI Securities where I completed my project work.

SAMPLING FRAMEWORK:

Sample Size: - Sample of 50 customers of ICICI Securities will be taken into study

and their data will be collected.

Sample Area: - Sampling area will be taken around Delhi – NCR.

Duration of project: - Time will be taken to complete the project is 2 months

DATA COLLECTION:

Collection of data (primary) by:

Questionnaire

Face to face interaction

DATA ANALYSIS:

After data collection, I am able to analyze customer views, perception and opinions

related to mutual fund and from this, ICICI Securities will come to know the customers’

requirements.

DATA INTERPRETATION:

Interpretation of data is done by using statistical tools like Pie diagrams, Bar diagrams

etc. and using quantitative techniques (by using these techniques) accurate information

will obtained.

50 | P a g e

LIMITATIONS OF THE STUDY

I had to rely upon the information given to me by the customers to arrive at

conclusion. Their responses might not be fully true.

This study is only limited to Kailash Colony, therefore the conclusion may not be

universally applicable.

Since the researcher is a student, he lacks professional approach.

COLLECTION OF RESPONSES FROM THE RESPONDENTS

S.No.

Name Rate the Demo on the scale of 1-5

(5- Highest Score, 1 - Lowest Score)

Are you Planning to Invest in MF

Any Feedback / Suggestion

1. Vijay Mehandiratta 4 No NA2. Bhanwar Sharma 4 No NA3. Vivek Singh 4 No good demo4. Pravesh Kumar 3 No Ok. service is good5. Namrata Rashmi 4 No good demo6. Tribesh Choudhuri 3 No ok7. Mukul Garg 4 Yes NA8. Surender Chouhan 4 No NA9. Sunita Aggarwal 5 No good10. Debnath Banerjee 3 No ok11. Surendra

Shekhawat 3 No NA12. Sajinder Kaur 4 No good13. Saleem Khan 5 No NONE14. M Nair 5 Yes Ok. very good15.

Anil Gautam 4 NoLack of knowledge and experience.

16.Ravi Gupta 4 No

personal loan settlement

17. Anil Kumar 3 No NA18. Rakesh Kumar 4 No NA19. Arunabha Gupta 4 No NA20. Jaishree Aggarwal 4 No NA21. Vikas Bhardwaj 3 No NA22. A Somani 3 No NA

51 | P a g e

23. Ashish Chamadiya 3 No NA24. U Nair 4 No good25. Anjana Maikap 3 No NA26.

Visalakshi Satyamurthy 5 Yes

Very god professional website. since icici direct is getting commission like any other distributor it is suggested for discontinuation of charges of Rs 30 and service tax on every sip investment

27. Ram Chauhan 4 No NA28.

Kumkum Grover 3 NoService is very poor.

29. Rakesh Rastogi 4 No good30. Kalindi Rastogi 4 No good31. Suchitra Dutta 2 No good32. Swaraj Barua 3 No NA33. Syama Sundara

Obulapuram 3 No NA34.

Danwati 4 Yes Very good demo.35. Nitin Saxena 3 Yes NA36. Yogesh Kumar 4 No good37. Nipun Lamba 4 No very good38. Indu Lal 3 No NA39. Sushmita Basu 3 No NA40. Neelam Budhwar 3 No NA41. Rishi Saxena 4 No overall good42. Shailendra Mishra 3 No good43. Sanjay Kumar 5 Yes good44. N Banik 4 No good45. Poonam Sharma 4 No NA46. Archana Pandey 3 No NA47.

Prakash Pradhan 4 Yes

I Want to see the details of mutual fund scheme then i will think to invest.

48. Sanjay Kumar 4 No NA49. Rajesh Savlani 3 Yes NA50.

M Kathait 4 NoCustomer did not know about daily

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NAV changing information.

51. Ravi Mittal 5 No Very good52.

S Dey 2 No

Yes it is a good product. I will ask my friends.

53. Mohammed Arfi 4 Yes NA54. Narpinder Kaur 4 No NA55. Mihir Singhal 4 No NA56. Jay Shah 3 No Good57. Habibur Rahman 3 No Good58. Bharti Kukreti 3 No Ok. service is good59. Tanmaya Sahu 5 No No60. Anil Singla 4 yes Ok. Good service61. Mukul Rastogi 4 No No62. Gyana Das 4 No good

Responsibilities assigned by the project mentor:

I have to meet ICICI Securities customers and have to tell them about mutual fund

and its benefit.

I have to show mutual fund and ICICI Direct site demo to customers.

I am responsible to solve their queries about mutual fund.

If customers want to know about online portal and online trading I have to give them

site demo.

I have to make customer fill up one online feedback form.

SAMPLING TECHNIQUE: Study the Project, a Simple Random Sampling technique is

used.

53 | P a g e

DATA INTERPRETATION: Interpretation of data is done by using statistical tools like Pie

diagrams. Bar diagrams etc. and using quantitative techniques (by using these techniques)

accurate information is obtained.

CLASSIFICATION & TABULATION OF DATA:

The data thus collected were classified according to the categories, counting sheets & the

summary tables were prepared. The resultant tables were one dimensional, two-dimensional.

STATISTICAL TOOLS USED FOR ANALYSIS:

Out of the total respondents, the respondents who responded logically were taken into

account while going into statistical details & analysis of data. The tools that have been used

for analyzing data & inference drawing are mainly statistical tools like percentage, averages,

etc. As per questionnaire, I have find out different responses from different people.

According to their responses, I analyze the findings and draw certain remarks.

CHAPTER-IV54 | P a g e

DATA ANALYSIS AND INTERPRETATION

Q1. Have you invested in any of the following in the last 12 months?

Equity Futures and option Mutual funds

Insurance Corporate FD Debenture/ bonds

PPF Others None

Ans:

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Equity

F&

O

Mutual fund

Insuran

ce

Corporat

e FD

Deben

ture/bonds

PPF

Others

None0

5

10

15

20

25

30

35

40

Responses

Responses

Figure no.2. Number of customers invested in securities in the last 12 months.

Analysis: It is seen in the above graph that most of the customers in ICICI securities prefer to make

investment in equity and mutual fund and less in F&O, insurance etc.

Ques 2. What is your preferred mode of investment?

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Online Offline

online offline0

5

10

15

20

25

30

35

responses

responses

Figure no. 3: Preferred mode of investment.

Analysis:

It is seen in the above graph that out of 50 customers 32 prefer to do their investment online

But only 18 customers are preferred to do their investment offline.

Ques 3. Have you invested in any of the following through ICICI Direct.com in the last 12

months?

57 | P a g e


Insurance Debenture/ bonds None

Ans: Out of 50 customers not even a single person invested in any of the above mention

funds through ICICIdirect.com in the last 12 months. Mainly the customers assigned was

inactive customers.

Q4. Were you aware that you can invest in mutual funds through ICICI direct.com?

Yes NO

Ans:

Yesno

Figure no.4 Reponses of customer about awareness that they can invest in MF through

ICICIDirect.com.

Analysis: According to the survey, out of 50 customers, 47 customers already knew that they

can invest in MF through ICICI direct.com but there are still 3 customers who didn’t knew

about this.

Q5. What are the reasons for not investing in mutual funds through ICICI direct.com?

I need assistance to invest in MF through ICICI direct.com

I need more knowledge on MF before I invest

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I am not interested as I invest through other brokers/agents.

I do not invest in MF

Ans:

Table no. 1. Table showing reasons of customers for not investing in mutual funds through

ICICI direct.com

responsesI need assistance to invest in MF through ICICI direct.comI need more knowledge on MF before I investI am not interested as I invest through other brokers/agents.I do not invest in MF

Figure no 5. Figure showing reasons of customers for not investing in mutual funds

through ICICI direct.com

Analysis: According to the survey it is been seen that out of 50 customers, majority of customers do not want to invest in mutual funds. There can be a lot of reasons for not investing in mutual funds. The reason could be lack of awareness, fear of losing their money and many more but still there are 16 customers out of 50 who want to invest in MF but want some assistance to invest in MF.

Q6. Which of the following online transactions have you done in the past?

I buy movie tickets online I buy flight tickets online

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options responsesI need assistance to invest in MF through ICICI direct.com 16I need more knowledge on MF before I invest 6I am not interested as I invest through other brokers/agents. 3I do not invest in MF 25

I book hotels online. I use online banking

I do not do any online transactions.

Ans:

Table no2. Table showing responses of customers who have done online transactions

in the past.

responses

I buy movie tickets onlineI buy flight tickets onlineI book hotels online.I use online bankingI do not do any online transactions.

Figure no 6 Figure showing responses of customers who have done online

transactions in the past.

Analysis: According to the survey, it is been seen that most of the customers use online transactions for using online banking, but some of the customers are also doing online transactions for buying movie tickets, hotels. But still there are some customers who did not do any online transactions.

Q7 How often do you transact online in the above mentioned transaction?

Monthly Quarterly

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options responses

I buy movie tickets online 21

I buy flight tickets online 17

I book hotels online. 12

I use online banking 39

I do not do any online transactions. 3

Once in 6 months once in a year

Ans.

Table no. 3. Table showing how regularly the customers used to transact online.

responses

MonthlyQuarterlyOnce in 6 monthsOnce in a year

Figure no. 7. Figure showing how regularly the customers used to transact online.

Analysis. According to a survey, out of 50 customers, 32 customers used to transact online

monthly. While there are 7 customers who used to transact online once in a quarter, while

there are still 5 persons who used to transact online once in a year.

Q8. Which medium of news information and analysis do you use to keep yourself updated on

investment products?

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options responsesMonthly 32Quarterly 7Once in 6 months 6Once in a year 5

I discuss with my friends/family/ colleagues

I use financial websites for comparisons and news

I have a financial advisor/ broker/ MF distributor who provides me the information.

I read media reports

I prefer to do my own research

Ans:


I use financial websites for comparions and news




0 5 10 15 20 25 30 35 40

responses

responses

Figure no. 8 Figure showing medium of news information and analysis customers use to

keep themselves updated on investment products.

Analysis: According to the survey, it is been seen that most of the customers read media

reports and prefer to do their own research to keep themselves updated on investment

products. While the customers using financial websites and who discus with their family and

friends to update themselves on investment products are less in numbers.

Q9. How do you check the performance of all/any of your investment?

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I update investment details on a third party portfolio website and check regularly.

I ask my financial advisor/ broker/ Mf distributor to send me the information.

My broker/ bank provides me the information.

Others____________________

Ans:

Table no. 4. Table showing how does the customers check performance of all/any of their

investment.



0 5 10 15 20 25 30

responses

responses

Figure no. 9 Figure showing how does the customers check performance of all/any of their

investment.

Analysis: According to the survey, out of 50 customers, 26 customers ask their broker/bank to provide them the information to check the performance of all/any of their investment. But 10 customers are still there who check performance of all/any of their investment on their own.

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Options responsesI update investment details on a third party portfolio website and check regularly.

7


7

My broker/ bank provides me the information. 26Others 10

Q10. Would you consider switching your investment relationship to ICICIdirect.com?

Yes No

Ans:

yes no05

101520253035404550

responses

responses

Figure no.10.Figure showing responses of customers about switching their investment

relationship to ICICI direct.com

Analysis: According to the survey it is been seen that out of 50 customers 45 customers were

interested in switching their investment relationship to icicidirect.com while 5 customers

disagree to switch their relationship to icici direct.com.

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Q11. Which of the following site features do you find useful at ICICI direct site?

Capital gain statement

Portfolio monitoring

Ease of purchase/redemption

Personalized research recommendations against holdings

Others

Ans:





Others

0 5 10 15 20 25 30 35 40

Series1

Figure no.11 Figure showing responses of customers about the site features they found useful

at ICICIdirect.com.

Analysis: According to the survey it is found that most of the ICICI securities’ customers

found capital gain statement useful at icici direct site.

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FINDINGS

Most of the customers were not fully aware with mutual fund and its advantage.

Customers even who know about mutual fund, are not investing their money into it

because of lack of knowledge about mutual fund.

Customers prefer to invest in other alternatives mostly in equity.

In future, customers would like to invest in mutual fund if ICICI Securities create

awareness and provide right knowledge about mutual fund among customers.

Most of the customers were using online mode of payment frequently.

Almost every customer were agree to continue with ICICI Securities services.

There was communication gap with some customers.

Mostly customers update themselves about investment decision by their own or take

advice with family and friends.

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SUGGESTIONS AND RECOMMENDATIONS

ICICI Securities should provide proper guidance to its customers about mutual fund

though seminars or other way of interaction.

There should be one department, which will call customer once in a month and notice

their problem or their complaint so there would not be any communication gap.

At the time of opening account, ICICI Securities can offer one tutorial class about

mutual fund or about other investment plans so there would not be any lack of

knowledge in customer mind.

ICICI Securities can send details about investment decision to its customers through

e-mail or SMS.

Before making any investment financial advisors should first enquire about the risk

tolerance of the investors, their need, and time. By considering these three things they

can take the customers into consideration.

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CONCLUSION

Running of successful Mutual Funds requires complete understanding the mind set of small

investors. This is a study taken to make an attempt to understand the financial behavior and

perception of ICICI Securities customers. I observed that many of customers have fear of

Mutual Fund. Many of customers do not invest in mutual fund due to lack of awareness

although they have money to invest. Most of customers prefer to invest in equity. Investors

should be made aware of the benefits. Nobody will invest till he/she is fully convinced of the

scheme.

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REFERENCE

1. Jain, Sahil, (July-Aug. 2012), Analysis of Equity Based Mutual funds in India (IOSR

Journal of Business and Management (IOSRJBM) Volume 2, Issue 1), PP 01-04.

2. Kaur, Gurjeet, Sharma R.D, Mahajan Neha, Oct-Dec 2014, Segmentation of Bank

Customer by Loyalty and Switching Intentation, Vol(39) No.4.

3. CRISIL Research, Apr 2013, CRISIL Mutual Fund Year Book, PP 01-80

4. Sundar, Vijayalakshmi, Mar-Apr 2014, Growth and Development of Mutual fund

industry with reference to banking Sector Funds: An Indian Perspective, Financial &

Business management (IFBM), Vol.2 No.2 PP 01-05.

5. Hasan, Arshad Jafri, 2013, analysis of Mutual Fund Industry of India in the light of

New Regulation and International factors, I.J.E.M.S, Vol.4(2), PP01-03.

6. CII 6th Mutual fund Summit, 2010, international conference.

7. www.kpmg.com/in , Indian Mutual Fund Industry, Distribution Continuum: Key to

success.

8. CII Mutual Fund Summit, 2013, Indian Mutual Fund Industry: Unearthing the growth

potential in untapped markets, PP 04-26.

9. Shah, Avani & Baser Narayan, Oct 2012, Mutual Fund: Behavioral Finance’s

perspective, Asia pacific Journal of Marketing & management Review, Vol.1 No.2,

PP 01-11.

10. Mehta, Shantanu & Shah, Charmi, Sept 2012, Preference of Investors for Indian

mutual funds and its performance Evaluation, Pacific Business review international,

Vol.5 issue 3, PP 01-16.

11. Prabhu, Gauri & Vechalekar, N.M, perception of Indian Investor towards investment

in mutual funds with special reference to MIP funds, IOSR Journal of Economics and

Finance (IOSR-JEF), PP 01-09.

12. Chakrabarti, Rajesh & Malik, Sarat & Khairnar, Sudhakar & Verma, Aadhaar,

(2013), penetration of Mutual Funds in India: Opportunities and Challenges, PP 01-

62.

13. Subrahmanyam, N, (2008-09), Mutual Funds and Banking: India and Global

Experience, PP 03-54.

14. Goel, Deepti & Gupta, Richa, May 2014, Mutual Fund Industry in India: An

Overview, International journal of Emerging research in management & Technology

Vol. 3, Issue 5, PP 01-04.

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http://www.kpmg.com/in

15. Dunna, Murlidhar, Oct 2012, mutual Funds in India-Issues, Opportunities and

Challenges, Asia pacific journal of Marketing & Management Review, Vol 1, No.2 ,

PP 01-10.

16. Singh, Anand & Mall, C.P, 2007, Mutual Fund Industry in India: Recent trends &

Progress, PP 01-14.

17. http://www.icicigroupcompanies.com

18. http://www.icicisecurities.com

19. http://www.assetmanagement.hsbc.com/in/mutual-funds/learning-centre/investor-

progrm/mutual_fund.html

20. http://www.mutualfundindia.com

21. www.sebi.com

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http://www.sebi.com/

http://www.mutualfundindia.com/

http://www.assetmanagement.hsbc.com/in/mutual-funds/learning-centre/investor-progrm/mutual_fund.html

http://www.assetmanagement.hsbc.com/in/mutual-funds/learning-centre/investor-progrm/mutual_fund.html

http://www.icicisecurities.com/

http://www.icicigroupcompanies.com/

Questionnaire

Name: ________________

Age: _________

Gender: Male

Female

Occupation ___________

Q 1. Have you invested in any of the following in the last 12 months?


Insurance Corporate FD Debenture/ bonds

PPF Others None

Q2. What is your preferred mode of investment?

Online Offline

Q3. Have you invested in any of the following through ICICI Direct.com in the last 12 months?


Insurance Debenture/ bonds None

Q4. Are you aware that you can invest in mutual funds through ICICI direct.com?

Yes NO

Q5 what are the reasons for not investing in mutual funds through ICICI direct.com?

I need assistance to invest in MF through ICICI direct.com

I need more knowledge on MF before I invest

I am not interested as I invest through other brokers/agents.

I do not invest in MF

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Q6. Which of the following online transactions have you done in the past?

I buy movie tickets online

I buy flight tickets online

I book hotels online.

I use online banking

I do not do any online transactions.

Q7. How often do you transact online in the above mentioned transaction?

Monthly Quarterly

Once in 6 months Once in a year

Q8. Which medium of news information and analysis do you use to keep yourself updated on investment products?


I use financial websites for comparisons and news




Q9. How do you check the performance of all/any of your investment?




Others____________________

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Q10. Would you consider switching your investment relationship to ICICIdirect.com?

Yes No

Q11. Which of the following site features do you find useful at ICICI direct site?





Others

Any suggestions/ recommendations-__________________________________________________

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Documents

(Amit Kr. Jha) Mutual Fund Simplified Project