Deepak ICICI Prudential Project Report

PROJECT REPORT

ON

PERCEPTION OF THE CHANNEL

PARTNERS TOWARDS MUTUAL FUND S

Submitted to the Partial Fulfillment of the Award of Post Graduate Diploma

INBusiness Administration

By

DEEPAK KUMAWATRegistration No. 200737327

Under the Supervision of

Ms. Noopur Bardia

SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)

Batch- 2007

ACKNOWLEDGEMENT

I would like to take this opportunity to thank all the persons who have helped me in making

my project a great success. My special thanks to Ms. Noopur Bardia, Sr. Regional Credit

Manager, Rajasthan, for giving me this opportunity to work with ICICI Bank and for guiding

me through the whole training period.

I am very thankful to all my colleagues of ICICI Bank for helping me in my work. It’s very

difficult to express feelings about ICICI Bank staff for the help and support.

It has indeed been a rich learning experience.

Last but not the least I would like to thank those person whose encouragement and ideas

enriched my report.

Thank you very much.

Date: 7th October 2010

Place: Jaipur Deepak Kumawat

TABLE OF CONTENT

Sr. No. Content Page No.

1 OBJECTIVE 4

2 ICICI PRUDENTIAL AMC AT GLANCE 5

3 RESEARCH METHODOLOGY 9

4 LIMITATIONS 11

5 AN IN-DEPTH KNOWLEDGE OF MUTUAL FUND 12

6 RISK RETURM MATRIX 17

7 PROCESS OF MUTUL FUND 19

8 ORGANIZATION OF MUTUL FUND 21

9 STRUCTURE OF MUTUAL FUND 23

10 ADVANTAGE OF MUTUL FUND 25

11 DISADVANTAGE OF MUTUL FUND 29

12 TYPE OF SCHEME IN MUTUL FUND 32

13 ICICI PRUDENTIAL MUTUAL FUND SCHEMES 42

14 COMPARATIVE STUDY 46

15 SURVEY 57

16 MATHEMATICAL ANALYSIS OF DATA 69

17 FINDINGS OF THE SURVEY 72

18 SUGGATIONS 73

1- OBJECTIVE

The main objectives of the study were:-

To study the mutual funds in detail, to study the various aspects involved in mutual

funds as to its working procedure, its advantages and disadvantages also the in-depth

study of different kinds of mutual funds.

To study the channel partners perception towards the mutual funds scenario in Jaipur.

To know how to face the problem of corporate world, to face original market situations

and to gain real marketing experience.

To enhance the knowledge and skills by working in particular company and apply the

theoretical knowledge in corporate sector.

To face the problem of corporate world and tackle them in polite way.

To educate the customers about facilities provided by ICICI Prudential.

The major findings of the report were found out that it is important to recognize the needs of

the customer and implement on them and also to recognize the potentials of their brokers and

agents and to reward them accordingly to retain their competency.

It was also found out that the survival and growth of the enterprise in dynamic business

environment would depend largely on their ability to promote.

2- ICICI PRUDENTIAL AMC AT A GLANCE

ICICI Prudential Asset Management Company enjoys the strong parentage of Prudential plc,

one of UK's largest players in the insurance & fund management sectors and ICICI Bank, a

well-known and trusted name in financial services in India. ICICI Prudential Asset

Management Company, in a span of just over eight years, has forged a position of pre-

eminence in the Indian Mutual Fund industry as one of the largest asset management

companies in the country with average assets under management of Rs. 68,7105.105 Crore (as

of August 31, 2010). The Company manages a comprehensive range of schemes to meet the

varying investment needs of its investors spread across 230 cities in the country.

Key IndicatorsAt inception - May

110108As on August 30, 2010

Average Assets Under Management

Rs. 160 Crore Rs. 687105.105 Crore

Number of Funds Managed 2 40

http://www.icicipruamc.com/

SPONSORS

ICICI BANK LTD

Securities and Exchange Board of India, vide its letter no. MFD/PM/567/02 dated June 4,

2002, has accorded its approval in recognizing ICICI Bank Ltd. as a co-sponsor consequent to

the merger of ICICI Ltd. with ICICI Bank Ltd.

ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is

India's largest private sector bank by market capitalization and second largest overall in terms

of assets. Bank has total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and

profit after tax Rs. 40.25 billion (US$ 8106 million) for the year ended March 31, 2010. ICICI

Bank is second amongst all the companies listed on the Indian stock exchanges in terms of

free float market capitalization Free float holding excludes all promoter holdings, strategic

investments and cross holdings among public sector entities. The Bank has a network of 2,035

branches and about 5,518 ATMs in India and presence in 18 countries. ICICI Bank offers a

wide range of banking products and financial services to corporate and retail customers

through a variety of delivery channels and through its specialised subsidiaries in the areas of

investment banking, life and non-life insurance, venture capital and asset management. The

Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in

United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International

Finance Centre and representative offices in United Arab Emirates, China, South Africa,

Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in

Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National

Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on

the New York Stock Exchange (NYSE).

ICICI PRUDENTIAL MUTUAL FUND

Headquartered in London, Prudential plc and its affiliated companies together constitute one

of the world's leading financial services groups. Prudential provides insurance and financial

services in a number of markets around the world, including in Asia, the US, the UK, Europe

and the Middle East. Founded in 1848, the company has £2410 billion in funds under

management (as of December, 31 2008) and more than 21 million customers worldwide.

Prudential has been writing life insurance in the United Kingdom for 160 years and has had

the largest long-term fund in the United Kingdom, for over a century. In the United Kingdom,

Prudential is a leading retirement savings and income solutions and life assurance provider.

M&G is Prudential's fund management business in the United Kingdom and Europe, with

almost £140 billion in funds under management (as of December 31, 2008). In the United

States, Jackson National Life, which we acquired in 11086, is one of the largest life insurance

companies providing retirement savings and income solutions.

In Asia, Prudential is the leading Europe-based life insurer in terms of market coverage and

number of top three ranking positions. It is also one of the largest and most successful fund

managers in Asia with more top five market rankings than any other regional player. Today,

Prudential has life insurance and fund management operations spanning 13 diverse markets in

Asia.

Prudential plc is incorporated and with its principal place of business in the United Kingdom.

It is not affiliated in any manner with Prudential Financial, Inc., a company whose principal

place of business is in the United States.

AMC Member Details

Information As On 01st Aug 2010

Name of the Mutual Fund ICICI Prudential Mutual FundDate of setup of Mutual Fund October 13, 110103Name(s) of Sponsor Prudential Plc and ICICI Bank Ltd.Name of Trustee Company ICICI Prudential Trust Ltd.

Name of Trustees

Mr. D.J. Balaji Rao - DirectorMr. Keki Bomi Dadiseth - DirectorMr. M. S. Parthasarathy - DirectorMs. Madhabi Puri-Buch - Director

Name of the Asset Management Co. ICICI Prudential Asset Mgmt.Company LimitedDate of Incorporation of AMC June 22, 110103

Name(s) of Director

Dr. (Mrs.) Swati A PiramalMr. Barry StoweMr. Dileep ChoksiMr. N.S.KannanMr. Nilesh ShahMr. Nimesh ShahMr. Vijay ThackerMr. Vikram B. TrivediMs. Chanda Kochhar

Name of Chairman Ms. Chanda KochharName of Chief Executive Officer Mr. Nimesh ShahName of Chief Investment Officer Mr. Nilesh Shah

Name(s) of Fund ManagerMr. Chaitanya PandeMr. Rahul GoswamiMr. S Naren

Name of Compliance Officer Ms. Supriya SapreName of Investor Service Officer Ms. Kamaljeet Saini

Address of AMC8th Floor, Peninsula Tower, Peninsula Corporate Park, Lower Parel Mumbai 400013

Telephone Number (B)2410107000 (Fax) 24101070210Email [email protected] http://www.icicipruamc.com/Name(s) of Auditors M/s N. M. Raiji & CompanyName(s) of Custodian HDFC Bank LimitedName(s) of Registrar and Transfer Agent

Computer Age Management Services Pvt. Ltd.


mailto:[email protected]

3- RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

“In-depth study of mutual funds and to study the perception of the channel partners towards

the mutual funds scenario in Jaipur.”

I. SAMPLING METHOD : Simple Random Sampling

Under this sampling design every item of the universe has an equal chance of inclusion

in the sample. This consists the collection of information randomly from the available

universe, whose views may be relevant to the subject of inquiry. Here 25 out of about

680 empanelled brokers of the ICICI Prudential Mutual Funds, Jaipur branch were

consulted for the study.

II. SOURCE OF DATA

a) PRIMARY DATA

The primary data collected for the study from the brokers and the agents.

Questionnaire has been used for the study of the brokers’ perception towards

mutual fund scenario.

b) SECONDARY DATA

Secondary data was collected from the company’s journals, annual reports, office

documents & various reference websites were also concerned for the collection of

secondary data

III. TOOLS FOR DATA COLLECTION

The tool used for the collection of primary data is the Questionnaire Method and for

the collection of secondary data the following tools were used:

a) Branch Manager and Sales Executives were consulted for various queries.

b) Various sites were referred in order to collect secondary data.

c) ICICI Prudential Mutual Fund‘s journals were consulted.

IV. SAMPLE DESIGN:

a) Sample Unit : The Brokers & The agents.

b) Sample size: A total of 25 respondents were surveyed.

V. TOOLS FOR ANALYSIS:

a) Percentage method : The analysis of the data collected through the

questionnaire was done with the help of the percentage method.

VI. METHODS OF PROJECTING FINDINGS :

a) Graphs: The data after analysis have been represented graphically with the

help of bar charts. The graphs help understand the data conveniently and that

too at a glance.

VII. PRACTICAL /SCIENTIFIC UTILITY

The main focus of the project was in-depth analysis of the mutual funds and to study

the channel partner’s perception towards mutual funds scenario in Jaipur and it was

found out that it is important to recognize the needs of the customer and implement on

them & also to recognize the potentials of their brokers and agents and to reward them

accordingly to retain their competency. It was also found out that the survival and

growth of the enterprise in dynamic business environment would depend largely on

their ability to promote.

4- LIMITATIONS

I. The project involved dealing with company information and data, which are

confidential to the company and cannot be disclosed to all.

II. Primary data collected totally dependent on the respondents’ view. The respondents

were not cooperative while filling up the questionnaire.

III. Since the study is wide in nature and can’t be taken for consideration. The data

collected is only from Jaipur so it can’t be taken into consideration for whole ICICI

Prudential and its branches.

IV. Time constraints, 30 days was not enough to get the knowledge of the whole mutual

fund industry.

V. The values taken for comparison are not the same always, so the results based on them

also keep on changing from time to time.

5- AN IN-DEPTH ANALYSIS OF MUTUAL FUNDS

5.1 WHAT IS A MUTUAL FUND?

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 appreciations realized 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.

Whether our goal is to preserve capital or maximize returns, whether it is to create wealth or

earn regular income, whether one wants to invest for 15 days or 15 years, whether one has

savings of Rs. 5000 or 5 lakhs, whether one is an investing whiz uninitiated investor, the

diverse realm of mutual funds has lot to offer.

The money thus collected is invested by the fund manager in different types of securities

depending upon the objective of the scheme.

These could range from shares to debentures to money market instruments. The income

earned through these investments & the capital appreciations realized by the scheme are

shared by its unit holders in proportion to the number of units owned by them (pro rata).

The basic objective of a mutual fund is to provide a diversified portfolio so as to reduce the

risk in investments at a lower cost. The mutual fund industry worldwide is based on this

premise. Investors who take up mutual fund route for investments believe that their risk is

minimized at lower costs, and they get an optimum portfolio of securities that match their risk

appetite. They are ignorant about the diverse techniques and hedging products that can be used

for minimizing the market volatility and hence take the help of the fund managers.

Mutual funds are 'open-ended' investment funds, meaning that new investors can contribute

money to the fund at any time, and existing investors can return their units or shares to the

fund for redemption at any time.

The mutual fund industry in India started in 11063 with the formation of Unit Trust of India,

at the initiative of the Government of India and Reserve Bank. Unit Trust of India (UTI) was

established on 11063 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

11078 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 11064. At the end of 11088 UTI had Rs.6, 700 crores of assets under

management.

5.2 HISTORY OF THE INDIAN MUTUAL FUND INDUSTRIES

The mutual fund industry in India started in 11063 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

I. First Phase – 11064-87

Unit Trust of India (UTI) was established on 11063 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 11078 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 11064. At the end of 11088

UTI had Rs.6,700 crores of assets under management.

II. Second Phase – 11087-110103 (Entry of Public Sector Funds)

11087 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 11087

followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 810),

Indian Bank Mutual Fund (Nov 810), Bank of India (Jun 100), Bank of Baroda Mutual Fund

(Oct 102). LIC established its mutual fund in June 110810 while GIC had set up its mutual

fund in December 110100.

At the end of 110103, the mutual fund industry had assets under management of Rs.47,004

crores.

III. Third Phase – 110103-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 110103, a new era started in the Indian mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 110103 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 governed. The erstwhile Kothari Pioneer (now

merged with Franklin Templeton) was the first private sector mutual fund registered in July

110103.

The 110103 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and

revised Mutual Fund Regulations in 110106. The industry now functions under the SEBI

(Mutual Fund) Regulations 110106.

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.

IV. Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 11063 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.210,835 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.

The graph indicates the growth of assets over the years.

History of the Indian Mutual Fund Industry

6-RISK RETURN MATRIX

The risk return trade-off indicates that if investor is willing to take higher risk then corre-

spondingly he can expect higher returns and vise versa if he pertains to lower risk instruments,

which would be satisfied by lower returns. For example, if an investors opt for bank FD,

which provide moderate return with minimal risk. But as he moves ahead to invest in capital

protected funds and the profit-bonds that give out more return which is slightly higher as com-

pared to the bank deposits but the risk involved also increases in the same proportion.

Thus investors choose mutual funds as their primary means of investing, as Mutual funds pro-

vide professional management, diversification, convenience and liquidity. That doesn’t mean

mutual fund investments risk free. This is because the money that is pooled in are not invested

only in debts funds which are less riskier but are also invested in the stock markets which in-

volves a higher risk but can expect higher returns. Hedge fund involves a very high risk since

it is mostly traded in the derivatives market which is considered very volatile.

7- PROCESS OF A MUTUAL FUNDS

WORKING OF MUTUAL FUND

8- ORGANISATION OF A MUTUAL FUND

There are many entities involved & the diagram below illustrates the organizational set up of a

mutual fund.

8- ST

9-SRUCTURE OF MUTUAL FUND

9.1 SPONSOR

Sponsor is the person who acting alone or in combination with another body corporate

establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the

Investment Managed and meet the eligibility criteria prescribed under the Securities and

Exchange Board Of India (Mutual Funds) Regulations, 110106.The Sponsor is not responsible

or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial

contribution made by it towards setting up of the Mutual Fund.

9.2 TRUST

The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian

Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration

Act, 11008.

9.3 TRUSTEE

Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals).

The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter

Alia ensure that the AMC functions in the interest of investors and in accordance with the

Securities and Exchange Board of India (Mutual Funds) Regulations, 110106, the provisions

of the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors

of the Trustee are independent directors who are not associated with the Sponsor in any

manner.

9.4 ASSET MANAGEMENT COMPANY (AMC)

The Trustee as the Investment Manager of appoints the AMC the Mutual Fund. The AMC is

required to be approved by the Securities and Exchange Board of India (SEBI) to act as an

asset management company of the Mutual Fund. At least 50% of the directors of the

AMC are independent directors who are not associated with the Sponsor in any manner. The

AMC must have a net worth of at least 10 crores at all times.

9.5 REGISTRAR AND TRANSFER AGENT

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the

Mutual Fund. The Registrar processes the application form; redemption requests and

dispatches account statements to the unit holders. The Registrar and Transfer agent also

handles communications with investors and updates investor records.

10- ADVANTAGES OF MUTUAL FUNDS

PREFERENCES FOR MUTUAL FUNDS

10. 1 DIVERSIFICATION:

Most mutual funds spread the money over 20 to 30 equity shares. This lowers the risk from an

investor loss. Even any one or two shares were to under perform; their impact on the NAV

may be restricted only to their proportion of holdings.

Take a simple example: say you have Rs10, 000 invested in one stock, reliance. Now the stock

drops 50%. The value of your investments will halve to Rs. 5000. Now say you had invested

the same amount in a mutual fund, which had parked 10% of its corpus in the reliance stock.

Assuming prices of other stocks in its portfolio stay the same, the depreciation in the fund’s

portfolio & hence your investment will be 5%.

10.2 PROFESSIONAL MANAGEMENT:

Most of us have neither the skill to find good stocks that suit our risk & Returns profile nor the

time to track our investments-but still want the returns that can be had from equities. When

you invest in mutual fund, it is your fund manager who will take care of your investments. A

fund manager is an investment specialist, who brings to the table an in-depth understanding of

the financial markets.

10.3 TAX BENEFITS:

Section 80 C for Equity Linked Saving Schemes, ability to reinvest your proceeds from capital

gains into mutual funds under section 54EA & 54EB & tax-free status for equity oriented

funds for three years starting from April1, 1101010 are popular benefits that investors in

mutual funds can avail of.

10.4 AFFORDABILITY:

A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the

investment objective of the scheme. An investor can buy in to a portfolio of equities, which

would otherwise be extremely expensive. Each unit holder thus gets an exposure to such

portfolios with an investment as modest as Rs.5000/-. This amount today would get you less

than quarter of an Infosys share! Thus it would be affordable for an investor to build a

portfolio of investments through a mutual fund rather than investing directly in the stock

market.

10.5 REGULATION:

Securities Exchange Board of India (“SEBI”), the mutual funds regulator has clearly defined

rules, which govern mutual funds. These rules relate to the formation, administration and

management of mutual funds and also prescribe disclosure and accounting requirements. Such

a high level of regulation seeks to protect the interest of investors.

10.6 VARIETY:

Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two ways:

first, it offers different types of schemes to investors with different needs and risk appetites;

secondly, it offers an opportunity to an investor to invest sums across a variety of schemes,

both debt and equity. For example, an investor can invest his money in a Growth Fund (equity

scheme) and Income Fund (debt scheme) depending on his risk appetite and thus create a

balanced portfolio easily or simply just buy a Balanced Scheme.

10.7 SYSTEMATIC INVESTMENT PLAN:

Small sums (starting from Rs 5000) of money can be invested monthly or quarterly. This is

not an option with equity shares. Shares or units of Mutual funds are also available in fractions

(up to three decimals), while equity shares are traded in round lots only. A plan for systematic

withdrawals is also available from some funds.

10.8 EASY ENTRY AND EXIT:

Filling a mutual fund application or a redemption form is all that it takes while entering or

exiting a mutual fund. But with equity shares, you need to have an account with a stock broker

(for buying & selling) and another with a depository participant (which maintains your shares

in an electronic form).

10.9 LIQUIDITY:

In open-end schemes, the investor gets the money back promptly at net asset value related

price from the mutual fund. In closed-end schemes, the units can be sold on a stock exchange

at the prevailing market price or the investor can avail of the facility of direct repurchase at

NAV related prices by mutual fund.

10.10 TRANSPARENCY:

You get regular information on the value of your investment in addition to disclosure on the

specific investments made by your scheme, the proportion invested in each class of assets &

the fund manager’s investment strategy & outlook.

10.11 FLEXIBILITY:

Through features such regular investment plans, regular withdrawal plans & dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs & convenience.

11- DISADVANTAGES OF MUTUAL FUNDS

Mutual Funds are good investment vehicles to navigate the complex & unpredictable world of

investments. However, even mutual funds have some inherent drawbacks.

11.1 RESTRICTIVE GAINS:

Diversification helps, if risk minimization is your objective. However the lack of investment

focus also mean you gain less than if you have invested directly in a single security. In our

earlier example, say, Reliance appreciated 50%. A direct investment in the stock would

appreciate by 50%. But your investment in the mutual fund, which had invested 10% of its

corpus in Reliance, will see only a 5% appreciation.

11.2 ENTRY AND EXIT LOADS:

The AMC that manages your mutual funds can also afford to bear all its expenses. So it

recovers part of these regular expenses from the investors, for whom it is doing this big

favour.

It is broken into two parts:

I. ANNUAL MANAGEMENT FEE

An annul management fee (up to 2.5 % for funds less than Rs100crores & 2 % for

funds above Rs100crores).

II. ENT RY & EXIT LOADS.

An ENTRY LOAD is mainly to help the AMC recover expenses relating to sales

literature, distribution, advertising & agent /broker commissions. The price at

which an investor buys into the fund is a function of both the NAV & sales load.

For instance, if the fund NAV is Rs 12 & the application sales load is6%, the cost

of entry is Rs12.77 {12/(1-0.06)}. If the investor applied or Rs10, 000 worth of

units he would receive 783.085units.

On the other hand, EXIT LOAD (if you withdraw within a specified period) is

charged while redeeming your units. The latter is for more logical reasons,

especially with income or money market funds, where a quick withdrawal by too

many investors can put pressure on the fund’s asset maturity profile.

11. 3 COST OF CHURN :

The portfolio of a fund does not remain constant. The extent to which the portfolio changes is

the function of the style of the individual fund manager i.e. whether he is a buy & hold type of

manager or the one who aggressively churns the fund. It is also dependent on the volatility of

the fund size i.e. whether the fund constantly receives fresh subscriptions & redemptions.

Such portfolio changes have associated costs of brokerage, custody fees; registration fees etc.

that lowers the portfolio returns commensurately.

11.4 CHANGE OF INDEX COMPOSITION:

World over, the indices keep changing to reflect changing market conditions. There is an

inherent survivorship bias in this process, with bad stocks weeded out & replaced by emerging

blue chips. This is a severe problem in India with the sensex having been changed twice in the

last five years, with each change being quite substantial. Another reason for change index

composition is mergers & acquisitions. The weightage of the shares of a particular company in

the index changes if it acquires a large company not a part of the index.

11.5 FUND MANAGEMENT COSTS:

The costs of fund management process are deducted from the fund. This includes marketing &

initial costs deducted at the time of entry itself, called “LOAD”. Then there is the annual asset

management fee & expenses, together called the EXPENSE RATIO. Usually the former is not

counted while measuring performances. A standard 2 % expense ratio means that, everything

else being equal, the fund manager under performs the benchmark index by an equal amount.

12- TYPES OF SCHEMES

(A) INVESTMENT OBJECTIVE:

Schemes can be classified by way of their stated investment objective such as Growth Fund,

Balanced Fund and Income Fund etc.

I. EQUITY ORIENTED SCHEMES

These schemes, also commonly called Growth Schemes, seek to invest a majority of their

funds in equities and a small portion in money market instruments. Such schemes have the

potential to deliver superior returns over the long term. However, because they invest in

equities, these schemes are exposed to fluctuations in value especially in the short term.

Equity schemes are hence not suitable for investors seeking regular income or needing to use

their investments in the short-term. They are ideal for investors who have a long-term

investment horizon. The NAV prices of equity fund fluctuates with market value of the

underlying stock which are influenced by external factors such as social, political as well as

economic. ICICI Prudential Dynamic Fund, ICICI Prudential Tax Plan and ICICI Prudential

Focused Equity Fund are examples of equity schemes.

GENERAL PURPOSE:

The investment objectives of general-purpose equity schemes do not restrict them to invest in

specific industries or sectors. They thus have a diversified portfolio of companies across a

large spectrum of industries. While they are exposed to equity price risks, diversified general-

purpose equity funds seek to reduce the sector or stock specific risks through diversification.

They mainly have market risk exposure. ICICI Prudential Dynamic Fund is a general-purpose

equity scheme.

SECTOR SPECIFIC

These schemes restrict their investing to one or more pre-defined sectors, e.g. technology

sector. Since they depend upon the performance of select sectors only, these schemes are

inherently more risky than general-purpose schemes. They are suited for informed investors

who wish to take a view and risk on the concerned sector.

SPECIAL SCHEMES

(a) INDEX SCHEMES:

The primary purpose of an Index is to serve as a measure of the performance of the market as

a whole, or a specific sector of the market. An Index also serves as a relevant benchmark to

evaluate the performance of mutual funds. Some investors are interested in investing in the

market in general rather than investing in any specific fund. Such investors are happy to

receive the returns posted by the markets. As it is not practical to invest in each and every

stock in the market in proportion to its size, these investors are comfortable investing in a fund

that they believe is a good representative of the entire market. Index Funds are launched and

managed for such investors. An example to such a fund is the ICICI Prudential Index Fund.

(b) TAX SAVING SCHEMES:

Investors (individuals and Hindu Undivided Families (“HUFs”)) are being encouraged to

invest in equity markets through Equity Linked Savings Scheme (“ELSS”) by offering them a

tax rebate. Units purchased cannot be assigned / transferred/ pledged / redeemed / switched –

out until completion of 3 years from the date of allotment of the respective Units.

The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Regulations,

110106 and the notifications issued by the Ministry of Finance (Department of Economic

Affairs), Government of India regarding ELSS.

Subject to such conditions and limitations, as prescribed under Section 88 of the Income-tax

Act, 11061, subscriptions to the Units not exceeding Rs.10, 000 would be eligible to a

deduction, from income tax, of an amount equal to 20% of the amount subscribed. ICICI

Prudential Tax Plan is such a fund.

(c) . REAL ESTATE FUNDS

Specialized real estate funds would invest in real estates directly, or may fund real estate

developers or lend to them directly or buy shares of housing finance companies or may even

buy their securitized assets.

(II) DEBT BASED SCHEMES:

These schemes, also commonly called Income Schemes, invest in debt securities such as

corporate bonds, debentures and government securities. The prices of these schemes tend to be

more stable compared with equity schemes and most of the returns to the investors are

generated through dividends or steady capital appreciation. These schemes are ideal for

conservative investors or those not in a position to take higher equity risks, such as retired

individuals. However, as compared to the money market schemes they do have a higher price

fluctuation risk and compared to a Gilt fund they have a higher credit risk.

INCOME SCHEMES:

These schemes invest in money markets, bonds and debentures of corporate with medium and

long-term maturities. These schemes primarily target current income instead of capital

appreciation. They therefore distribute a substantial part of their distributable surplus to the

investor by way of dividend distribution. Such schemes usually declare quarterly dividends

and are suitable for conservative investors who have medium to long-term investment horizon

and are looking for regular income through dividend or steady capital appreciation. ICICI

Prudential Income Plan, ICICI Prudential Short Term Plan and ICICI Prudential Fixed

Investment Plans are examples of bond schemes.

LIQUID INCOME SCHEMES:

Similar to the Income scheme but with a shorter maturity than Income schemes. An example

of this scheme is the ICICI Prudential Liquid Fund.

MONEY MARKET SCHEMES:

These schemes invest in short term instruments such as commercial paper (“CP”), certificates

of deposit (“CD”), treasury bills (“T-Bill”) and overnight money (“Call”). The schemes are the

least volatile of all the types of schemes because of their investments in money market

instrument with short-term maturities. These schemes have become popular with institutional

investors and high net worth individuals having short-term surplus funds.

GILT FUNDS:

This scheme primarily invests in Government Debt. Hence the investor usually does not have

to worry about credit risk since Government Debt is generally credit risk free. ICICI

Prudential Gilt Fund is an example of such a scheme.

(III) HYBRID SCHEMES:

These schemes are commonly known as balanced schemes. These schemes invest in both

equities as well as debt. By investing in a mix of this nature, balanced schemes seek to attain

the objective of income and moderate capital appreciation and are ideal for investors with a

conservative, long-term orientation. ICICI Prudential Balanced Fund and ICICI Prudential

Child Care Plan are examples of hybrid schemes.

(B) CONSTITUTION BASED:

Schemes can be classified as Closed-ended or Open-ended depending upon whether they give

the investor the option to redeem at any time (open-ended) or whether the investor has to wait

till maturity of the scheme.

(I) OPEN ENDED SCHEMES:

Open end funds are operated by a mutual fund house which raises money from shareholders

and invests in a group of assets, as per the stated objectives of the fund. Open-end funds raise

money by selling shares of the fund to the public, in a manner similar to any other company,

which sell its stock to raise the capital. An open-end mutual fund does not have a set number

of shares. It continues to sell shares to investors and will buy back shares when investors wish

to sell. Units are bought and sold at their current net asset value.

Open-end funds are required to calculate their net asset value (NAV) daily. Since the NAV of

an open-end fund is calculated daily, it serves as a useful measure of its fair market value on a

per-share basis. The NAV of the fund is calculated by dividing the fund's assets minus

liabilities by the number of shares outstanding. Open-end funds usually charge an entry or exit

load from the investors.

Most of the open-end funds are actively managed and the fund manager picks the stocks as per

the objective of the fund. Open-end funds keep some portion of their assets in short-term and

money market securities to provide available funds for redemptions. A large portion of most

open mutual funds is invested in highly liquid securities, which enables the fund to raise

money by selling securities at prices very close to those used for valuations.

(II) CLOSED ENDED SCHEMES:

A closed-end mutual fund has a set number of shares issued to the public through an initial

public offering. These funds have a stipulated maturity period generally ranging from 3 to 15

years. The fund is open for subscription only during a specified period. Investors can invest in

the scheme at the time of the initial public issue and thereafter they can buy or sell the units of

the scheme on the stock exchanges where they are listed.

Once underwritten, closed-end funds trade on stock exchanges like stocks or bonds. The

market price of closed-end funds is determined by supply and demand and not by net-asset

value (NAV), as is the case in open-end funds. Usually closed mutual funds trade at discounts

to their underlying asset value.

Distinct Features of Closed-end Funds

These funds are closed to new capital after they begin operating

Closed-end funds trade on stock exchanges rather than being redeemed directly by the fund

Unlike open-end funds, the closed-end funds can be traded during the market day at any time. Open-end funds are generally traded at the closing price at the end of the market day.

Closed-end funds are usually traded at a premium or discount whereas open-end funds are traded at NAV.

(III) INTERVAL SCHEMES:

These schemes combine the features of open-ended and closed-ended schemes. They may be

traded on the stock exchange or may be open for sale or redemption during pre-determined

intervals at NAV based prices.

13- ICICI PRUDENTIAL MUTUAL FUND SCHEMES

You are unique - and that's why what's right for someone else may not be right for you. So is

the case with your investment needs. As an investor you could be very cautious or very

aggressive or someone who would like to maintain a balance.

We at ICICI Prudential Mutual Fund, understand this reality and therefore to meet the

investment needs of different kinds of investors we offer a range of solutions that enable them

to create a portfolio of the tenor, return and risk that they desire.

On the debt market side, from simple parking solutions for efficient utilization of each rupee

for each day, to long term interest rate view-based products, our range spans varying time

horizons and incomes. Our debt products are managed to minimize liquidity & credit risks and

also manage interest rate risks. They come with periodic dividend and growth options to

enable you to choose your income streams in a manner most efficient for your needs.On the

equity market side, our equity funds offer a choice of size, sectors, themes and styles to enable

participation in the broad market and its segments.

The chart below plots schemes offered by ICICI Prudential Mutual Fund on a risk-return scale

that helps you zero-in on the relevant schemes that match your risk taking ability and the

returns you desire.

http://www.icicipruamc.com/asp/amc/ourfunds/fundfacts.asp#%23

A) E QUITY F UNDS

I. ICICI PRUDENTIAL DISCOVERY FUND

II. ICICI PRUDENTIAL POWER FUND

III. ICICI PRUDENTIAL DYNAMIC PLAN

IV. ICICI PRUDENTIAL EMERGING S.T.A.R. FUND

V. ICICI PRUDENTIAL TAX PLAN

VI. ICICI PRUDENTIAL GROWTH PLAN

VII. ICICI PRUDENTIAL FOCUSED EQUITY FUND

VIII. ICICI PRUDENTIAL INDO ASIA EQUITY FUND

B) SECTORAL FUND

I. ICICI PRUDENTIAL INFRASTRUCTURE FUND

II. ICICI PRUDENTIAL SERVICE INDUSTRIES FUND

III. ICICI PRUDENTIAL FMCG FUND

IV. ICICI PRUDENTIAL BANKING AND FINANCIAL SERVICES FUND

V. ICICI PRUDENTIAL TECHNOLOGY FUND

C) B ALANCED F UNDS

I. ICICI PRUDENTIAL CHILD CARE PLAN (GIFT)

II. ICICI PRUDENTIAL BALANCED FUND

III. ICICI PRUDENTIAL CHILD CARE PLAN (STUDY)

D) D EBT F UNDS

I. ICICI PRUDENTIAL INCOME MULTIPLIER FUND

II. ICICI PRUDENTIAL INCOME PLAN

III. ICICI PRUDENTIAL SHORT TERM PLAN

IV. ICICI PRUDENTIAL LONG TERM FLOATING RATE PLAN

V. ICICI PRUDENTIAL FLOATING RATE PLAN

VI. ICICI PRUDENTIAL LIQUID PLAN

14- COMPARATIVE STUDY

ICICI Prudential Mutual Fund is being compared on the following bases:

a) Returns of various schemes of ICICI Prudential compared with their Benchmark Return

b) Overall comparison of Investments in Mutual Fund v/s Investment with Bank

c) Study of ICICI Prudential Mutual Funds schemes vis-à-vis with its Core Competitors on the bases of their performance since last 1 year.

I. COMPARISON OF ICICI PRUDENTIAL FUND RETURNS SINCE INCEPTION

WITH BENCHMARK RETURNS

A. EQUITY SCHEMES (At September 29th 2010)

SR No. SCHEME SCHEME

RETURNS

BENCHMARKRETURNS

1 DYNAMIC PLAN 34.79 % 25.01 %

2 POWER FUND 16.29 % 9.34 %

3

4

5

SECTORAL FUND

INFRASTRUCTURAL

FMCG

TECHNOLOGY

24.97 %

17.48 %

4.50 %

17.95 %

8.88 %

-2.78 %

6 TAX PLAN 26.87 % 13.47 %

7 FOCUSED EQUITY FUND 21.00 % 3.81 %

8 GROWTH PLAN 23.54 % 15.32 %

B. BALANCE FUND


RETURNS

BENCHMARKRETURNS

1 CHILDCARE PLAN (GIFT) 22.07 % 17.35 %

2 CHILDCARE PLAN

(STUDY)

12.40 % 17.35 %

3 BALANCED FUND 14.59 % 13.1 %

C. DEBT FUND


RETURNS

BENCHMARKRETURNS

1 INCOME PLAN 8.66 % 5.55 %

2 LIQUID PLAN 6.20 % 18.42 %

3 INCOME MULTIPLIER

FUND 5.78 % 24.23 %

4 LONG TERM FLOATING

RATE PLAN 7.01 % 5.96 %

5 FLOATING RATE PLAN 6.19 % 5.60 %

CONCLUSIONS:

From the above comparison we can conclude that the returns of the equity funds is more than

as compared to the debt or balanced funds, and this is because of the high returns in the equity

market.

II. COMPARISON OF INVESTMENT WITH MUTUAL FUNDS v/s INVESTING

WITH BANKS

BASES OF

COMPARISON

BANKS MUTUAL FUNDS

RETURNS LOW BETTER

ADMINISTRATIVE EXP. HIGH LOW

RISK LOW MODERATE

INVESTMENT OPTION LESS MORE

NETWORK HIGH PENETRATION LOW BUT IMPROVING

LIQUIDITY AT A COST BETTER

QUALITY OF ASSETS NOT TRANSPARENT TRANSPAERNT

INTEREST

CALCULATION

MINIMUM BALANCE

BETWEEN 10TH & 30TH OF

EVERY MONTH

EVERYDAY

GUARANTEE MAXIMUM Rs1LAKH ON

DEPOSITS

NONE.

CONCLUSIONS:

The above comparison makes it clear that even if the risk involved in the mutual funds is

much more than that of investment with banks, the returns are better in mutual funds than

those compared with the bank. The quality of assets is also transparent in mutual fund as

compared to banks. The network of mutual funds is improving regularly with better liquidity

as compared to bank.

III. STUDY OF ICICI PRUDENTIAL MUTUAL FUNDS VIS-À-VIS WITH ITS CORE

COMPETITORS ON THE BASIS OF PERFORMANCE SINCE LAST 1 YEAR.

We studied the various funds of ICICI Prudential Mutual Funds with those of:

1. Franklin Templeton.

2. HDFC Mutual Funds.

3. TATA Mutual Funds.

The funds undertaken for study were:

1. Equity funds

2. Balanced funds

3. TAX saving funds

A. STUDY ON THE BASIS OF PERFORMANCE

To study the funds on the basis of performance we study them on the basis of the NAV (Net

Asset Value) of the funds in past 1 year.

EQUITY FUNDS PERFORMANCE COMPARED IS AS FOLLOWS

(At September 29th 2010)

NAV (%) GROWTH

DURATION

HDFC

EQUITY

FUND

FRANKLIN

INDIA BLUE

CHIP

PRU ICICI

DISCOVERY

FUND

TATA EQUITY

OPPORTUNITY

FUND

1 MONTH 8.70% 9.50% 6.70% 6.70%

3 MONTH 18.5% 15.80% 13.00% 11.40%

6 MONTH 26.3% 15.90% 20.10% 11.60%

1 YEAR 42.6% 32.00% 39.40% 25.80%

RANK I III II IV

FINDINGS:

After studying the equity funds of ICICI Prudential with others we can conclude that ICICI Prudential Equity Fund has major competition with HDFC Equity Fund and Franklin India Blue Chip fund on the basis of performance.

On the basis of an annualized performance we can rank them as follows:

I 42.60% HDFC Equity Fund

II 39.40% Pru ICICI Discovery Fund

III 32.00% Franklin India Blue Chip

IV 25.80% TATA Equity Opportunity Fund

EQUITY FUND PERFORMANCE

42.60%

32.00%

39.40%

25.80%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

PERFORMANCE

Series1

Series2

Series1 42.60% 32.00% 39.40% 25.80%

Series2

HDFC EQUITY FUND

FRANKLIN INDIA BLUE CHIP

PRU ICICI DISCOVERY

FUND

TATA EQUITY OPPORTUNITY

FUND

BALANCED FUNDS PERFORMANCE COMPARED IS AS FOLLOWS


NAV (%) GROWTH

DURATION

HDFC

BALANCED

FUND

FT INDIA

BALANCED

FUND

PRU ICICI

BALANCED

TATA

BALANCED

FUND

1 MONTH 5.00% 6.10% 6.40% 5.60%

3 MONTH 9.50% 9.00% 9.20% 8.50%

6 MONTH 17.30% 11.80% 11.50% 12.60%

1 YEAR 34.00% 18.20% 21.70% 24.00%

RANK I IV III II

FINDINGS:

Looking up at the performance of the balanced funds of different companies we can conclude

that HDFC Balance Fund is doing better and PruICICI Balance fund need to be do more work

to improve the performance in this segment.


I 34.00% HDFC Balanced Fund

II 24.00% TATA Balanced Fund

III 21.70% PruICICI Balanced Fund

IV 18.20% FT India Balanced Fund

BALANCED FUND PERFORMANCE

34.00%

18.20%

21.70%24.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

PERFORMANCE

Series1

Series2

Series1 34.00% 18.20% 21.70% 24.00%

Series2

HDFC BALANCED

FUND

FT INDIA BALANCED

FUND

PRU ICICI BALANCED

TATA BALANCED

FUND

TAX SAVER PERFORMANCE COMPARED IS AS FOLLOWS


NAV (%) GROWTH

DURATION HDFC TAX

SAVER

FRANKLIN

INDIA TAX

SHIELD

PRU ICICI

TAX

TATA TAX

SAVING

1 MONTH 8.00% 8.80% 8.20% 7.80%

3 MONTH 14.80% 14.30% 12.00% 11.00%

6 MONTH 21.70% 16.30% 16.20% 14.30%

1 YEAR 36.70% 32.10% 37.10% 24.10%

RANK II III I IV

FINDINGS:

After comparing the Tax Saver of HDFC TAX SAVER with others we can conclude that PRU

ICICI TAX SAVER is a better fund on the basis of performance.


I 37.10% PRUICICI Tax

II 36.70% HDFC Tax Saver

III 32.10% FRANKLIN India Tax Shield

IV 24.10% TATA Tax Saving

TAX SAVER PERFORMANCE

36.70%

32.10%

37.10%

24.10%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

PERFORMANCE

Series1

Series2

Series1 36.70% 32.10% 37.10% 24.10%

Series2

HDFC TAX SAVER

FRANKLIN INDIA TAX SHIELD

PRU ICICI TAXTATA TAX SAVING

Data Source: www.moneycontrol.com

15- SURVEY

TO STUDY THE PRCEPTION OF THE CHANNEL PARTNERS TOWARD THE

MUTUAL FUND SCENARIO IN JAIPUR

1) Which plays a greater role for Investors?

a) Safety : 41%

http://www.moneycontrol.com/

b) Services : 00%

c) Liquidity : 00%

d) Returns : 59%

41%

0% 0%

59%

0%

10%

20%

30%

40%

50%

60%

70%

Safety Services Liquidit Returns

2) Generally Invertors are:

a) Risk Lover : 12%

b) Risk Averter : 47%

c) Risk Indifferent : 00%

d) Risk Tolerable : 41%

12%

47%

0%

41%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Risk Lover Risk Averter Risk Indifferent Risk Tolerable

3) What is the cause of low penetration of Mutual Funds in the market?

a) Less knowledge : 53%

b) Ignorance : 18%

c) Attitude : 08%

d) Market Condition : 21%

53%

18%

8%

21%

Less Knowledge Ignorance Attitude Market Conditions

4) What is the future of Mutual Fund market?

a) Bright : 65%

b) Dull : 00%

c) Un predictable : 18%

d) Depends upon the economic scenario : 17%

65%

0%

18% 17%

0%

10%

20%

30%

40%

50%

60%

70%

Bright Dull Un predictable Depends upon theeconomic scenario

5) Which type of Fund is easily acceptable in the market?

a) Debt : 24%

b) Equity : 76%

24%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Debt Equity

6) Rank the main competitor of ICICI Prudential Mutual Funds

a) Franklin Templeton : 47%

b) HDFC Mutual Fund : 35%

c) Tata Mutual Fund : 04%

d) UTI Mutual Fund : 02%

e) Reliance Mutual Fund : 11%

f) Sundaram Mutual Fund : 00%

g) Birla Mutual Fund : 01%

47%

35%

4%2%

11%

0% 1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FranklinTempleton

HDFCMutual Fund

Tata MutualFund

UTI MutualFund

RelianceMutual Fund

SundaramMutual Fund

Birla MutualFund

7) ICICI Prudential’s schemes are-

a) Aggressive : 24%

b) Conservative : 47%

c) Normal : 21%

d) Can’t say : 00%

24%

47%

21%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Aggressive Conservative Normal Can’t say

8) Which of the plans is the bestseller in the Debt category?

a) Liquid Plan : 41%

b) Income Plan : 12%

c) Gilt Plan : 00%

d) Floating Rate Income Plan : 47%

41%

12%

0%

47%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Liquid Plan Income Plan Gilt Plan Floating Rate IncomePlan

9) Which of the following plan is the best seller in the Equity category?

a) Core & Satellite : 18%

b) Prudence Fund : 08%

c) Equity Fund : 51%

d) Tax Saver : 23%

18%

8%

51%

23%

0%

10%

20%

30%

40%

50%

60%

Core & Satellite Prudence Fund Equity Fund Tax Saver

10) Commission pattern is the best in which of the following:

a) HDFC : 14%

b) Franklin Templeton : 18%

c) Pru ICICI : 20%

d) Tata Mutual Fund : 07%




14%

18%

20%

7%

26%

10%

5%

0%

5%

10%

15%

20%

25%

30%

HDFC FranklinTempleton

PruICICI Tata MutualFund

RelianceMutual Fund

SundaramMutual Fund

Birla MutualFund

11) Where does ICICI Prudential Mutual Fund’s target market lie?

a) Individual : 71%

b) Corporate : 11%

c) HUF : 18%

d) Non profit organization : 00%

71%

11%

18%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

Individual Corporate HUF Non ProfitOrganization

12) In terms of customer care service, which is the best?

a) HDFC : 22%

b) Pru ICICI : 28%

c) Franklin Templeton : 16%

d) Tata Mutual Fund : 10%




22%

28%

16%

10%11%

5%

8%

0%

5%

10%

15%

20%

25%

30%

HDFC PruICICI FranklinTempleton

Tata MutualFund

RelianceMutual Fund

SundaramMutual Fund

Birla MutualFund

16- MATHEMATICAL ANALYSIS OF DATA

1) Which plays a greater role for the investors?

41% of the respondents feel its Safety.

59% of the respondents feel its Returns.

2) Generally investors are: -

47% of the respondents feel they are Risk averter.

12% of the respondents feel they are Risk Lovers.

41% of the respondents feel they are Risk Tolerable.

3) Cause of low penetration of the mutual funds in the market: -

53% of the respondents feel it’s due to Less Knowledge.

18% of the respondents feel it’s due to Ignorance.

29% of the respondents feel it’s due to Market conditions.

4) The future of mutual fund market is: -

65% of the respondents feel it’s Bright.

18% of the respondents feel it’s Un predictable.

17% of the respondents feel it depends upon the Economic Scenario.

5) Funds that are easily acceptable in the market: -

76% of the respondents say it’s Equity.

24% of the respondents say it’s Debt.

6) Main competitors of ICICI Prudential Mutual Funds are: -

47% of the respondents say it is Franklin Templeton.

35% of the respondents say it is HDFC Mutual Fund.

11% of the respondents say it is Reliance Mutual Fund.

7) ICICI Prudential Mutual Funds schemes are: -

47% of the respondents feel that the schemes are Conservative.

24% of the respondents feel that the schemes are Aggressive.

29% of the respondents say it is Normal.

8) ICICI Prudential’s best debt plans are: -

47% of the respondents say it is Floating Rate Income Plan.

12% of the respondents say it is Income Plan.

41% of the respondents say it is Liquid Plan.

10) ICICI Prudential’s best Equity Plan: -

59% of the respondents say it is Equity fund.

18% of the respondents say it is Core & Satellite.

23% of the respondents say it is Tax Saver.

10) Commission pattern is the best of: -


20% of the respondents say it is PruICICI.



11) Target market for ICICI Prudential Mutual Fund is: -

71% of the respondents say it is Individuals.

11% of the respondents say it is Corporate.

18 % of the respondents say it is HUF.

12) Customer Care Services best provided by: -


28% of the respondents say it is Pru ICICI.



10% of the respondents say it is Tata Mutual fund.

17- FINDINGS OF THE SURVEY

1. Safety plays an important role after Returns for the Investors.

2. Generally Investors are Risk Averters.

3. Less Knowledge is the cause of low penetration in the market.

4. Franklin Templeton is the main competitor to ICICI Prudential Mutual Fund.

5. Reliance Mutual Fund offers the best commission to the brokers.

6. ICICI Prudential provides the best Customer Care Services.

7. Rural area is the untapped are of ICICI Prudential Mutual Fund.

8. ICICI Prudential Mutual Fund has also left out Non Profit Organizations and Low

Income group.

18- RECOMMENDATIONS ANDSUGGESTIONS

ICICI Prudential Mutual Fund should try to reach out to the rural areas for gaining more

clients in order to do so they need to gain confidence of the individuals with regular income in

the rural areas, by telling them the benefits of investing in Mutual Fund. This can be done by

providing them regular knowledge about Mutual Funds where in by investing just a minimal

amount of Rs.500 to Rs.1000 every month, they can earn a good amount of money.

In order to push the product in the market and fetch maximum number of clients, ICICI

Prudential Mutual Fund should try to increase its visibility.

The authorized people of the company should be in regular contact with all the empanelled

brokers, in order to make them aware about the companies latest schemes, this would also help

them have a command in the market.

Regular training programs should be conducted, to give them knowledge about the upcoming

schemes. They should also conduct various contests among the brokers wherein they can go

for one-liners regarding Mutual Funds, and should also be rewarded accordingly. This would

encourage the brokers to attend the training programmes and market the product.

Rewards should be given for the best IFA’s and should also promote the best one.

Gifts should be given to the long-term clients and those who invest a good large amount with

ICICI Prudential Mutual Fund. Like

Bonus units of the schemes they have invested in.

Awards like “The best client” or “the client of the year” can be given timely. This would help

in word of mouth marketing of the ICICI Prudential Mutual Funds.

It has been seen that the terms and conditions in the plans and the schemes are being amended

from time to time, they are not constant this also hampers the in hand clients. Therefore not

only the agents but the general public should also be informed regularly.

Source

www.icicibank.com

www.icicipruamc.com

www.moneycontrol.com

www.sify.com\finance

www.insuranceguide.com

www.irdaindia.com

http://www.irdaindia.com/

http://www.insuranceguide.com/

http://www.moneycontrol.com/


http://www.icicibank.com/

Deepak ICICI Prudential Project Report

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