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ICICI PRUDENTIAL MUTUAL FUND
Project report submitted in partial fulfillment for the award of degree in POST GRADUATE DIPLOMA IN MANAGEMENT By T.SUDHEER Regd no: 010-012-030 PGDM 2010-2012 Under the esteemed guidance of
Mr. SUHEI SHAIK ASST MANAGER-SALES
Industry Guide & Dr. B. Ratan Reddy Professor & Faculty Guide RATAN GLOBAL BUSINESS SCHOOL, HYDERABAD Approved by AICTE, Ministry of HRD, Govt of India, New Delhi
I declare that project report entitled “A STUDY ON COMPARATIVE ANALYSIS OF VARIOUS MUTUAL FUNDS IN ICICI PRUDENTIALS, HYDERABAD” is original and has not been submitted in part or in full for the award of any other degree or Diploma.
I am very thankful to Mr. SUHEL SHAIK, Asst Manager, Sales for giving permission to do project in their organization and extending his valuable guidance throughout the study.
I am also thankful to Mr. Ravi Shekhar, Regional manager and Mr.P.V.V SYAM SUNDAR, Relationship manager for providing me the valuable information and had spent their time in completing my project.
At last express my gratitude to all those who have helped me directly or indirectly in completing this project successfully.
Research methodology and the limitations of the study Chapter: .2 Deals with the introduction to the Industry profile Chapter: .4 Deals with the analysis of the data & Interpretation Chapter: -5 Deals with findings of the study that are arrived at after making the data analysis Chapter:-6 Deals with the suggestions of the study.1 Deals with the introduction this chapter sets the objective of the study and also gives the need.3 Deals with the Review of literature and company profile.ABSTRACT The present project work “A Comparative Analysis of Various Mutual Funds With Reference To Nifty” is categorized in to seven chapters Chapter: . 4 . Chapter:-7 Deals with the conclusions of the study. scope. Chapter: .
NO 1 2 3 • • INDUSTRY PROFILE LITERATURE REVIEW COMPANY PROFILE ANNEXURE:BIBLIOGRAPHY LIST OF TABLES 5 .CONTENT CHAPTER NO TITLE 1 • • • • • INTRODUCTION TO TOPIC OBJECTIVES NEED AND SCOPE OF STUDY LIMITATIONS RESEARCH METHODOLOGY 3 4 5 6-18 19-38 39-44 4 DATA ANALYSIS & 5 6 7 INTERPRETATION FINDINGS SUGGESTIONS CONCLUSSION 45-75 76 77 78 2 PAGE.
TABLENO 1 2 TABLE NAME Icici prudential gilt fund .treasury plan .investment plan PAGE NO 45-46 47-48 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Icici prudential income plan – institutional Reliance liquid fund .regular plan – dividend Escorts gilt fund Escorts income plan Escorts liquid plan Nifty average returns Comparative average returns of funds Comparative risk of funds Comparative study on fund returns to nifty returns Comparative study on fund risk to nifty risk Comparative study on fund average returns to fund risk Ranks according to average returns Ranks according to risk 49-50 51-52 53-54 55-56 57-58 59-60 61-62 63-64 65-66 67-68 69 70 71 72 73 74 75 75 6 .institutional plan Reliance liquidity fund Reliance monthly income plan – growth Jm nifty plus fund Jm g-sec fund .regular plan – growth Jm g-sec fund .pf option Icici prudential gilt fund .investment plan .
I 7 .CHAPTER .
also referred to as mutual fund. All the mutual funds aim at achieving one or more of the following. Except the union trust of India. which collect the savings of investors and invest them in a large and well-diversified portfolio of securities such as money market instruments. construct a diversified portfolio of stocks. all mutual funds in India are organized and set up under the Indian Trust Act as Trust. Providing high capital appreciation. which undertakes informed investment decisions and provides consequential benefits of professional expertise. knowledge. experience and resources for directly accessing the capital market. Since small investors generally do not have adequate time. The primary objective of all mutual funds is to provide better returns to investors by minimizing the risk associated with capital market instruments. them have to rely on and intermediaries. Mutual funds are conceived as instructions for providing small investors with avenues of investments in the capital market. A mutual fund is a pool of commingles funds invested by different investors. or can invest through an investment company. corporate and government bonds and equity shares of joint stock companies. 8 . Mutual funds pools money from a cross section of investors by issuing units. who have no contact with each other. Mutual fund are financial intermediaries.INTRODUCTION Investment in a portfolio can take different forms. Providing income or capital appreciation with tax benefits. bonds and other investment instruments and invest the same in capital market. Providing a steady flow of income. An investor can either invest securities. Providing capital appreciaton with income.
The market being a major factor affecting the mutual funds performance. Therefore mutual funds are a good option for them. This study shows the performance of a few funds and compares it with nifty . But they do not have the knowledge and expertise to take decisions. The internal factors contributing for the performance of this specific fund is not include in the scope of the study. More over them have limited funds and time. the market plays a critical role despite the precautions 9 . SCOPE OF THE STUDY The historical performance of the fund is compared with performance of the market (Nifty).OBJECTIVES To study performance of a selected mutual funds To compare the fund performance with respect to Nifty To make suggestions to investors based on performance anal NEED OF THE STUDY Many small investors are tempted to invest in the markets these days. The scope of the study is confined to the performance of this specific fund in comparison to the prevailing market conditions. Both the historical data of the fund and the market is used for analysis.
taken by the fund managers. The following limitation has been founded during the study of project 1. The sample size chosen for the project study is not sufficient enough to give suggestions to investors. websites and other books as primary data was not accessible. The study is based on secondary data available fact sheets. 2. The scope of the study is limited to the performance of the fund in the existing market conditions. 3. Data pertaining to 2008-2009 was considered for analysis 4. The care taken by the fund mangers does not fall in the scope of the study. LIMITATIONS The present project work has been studied to analysis to study on “A Comparative Study of Selected Mutual Funds With Reference To Nifty”. The study is limited only to the analysis of different schemes and its suitability to different investors according to their risk taking ability. 10 .
institutional plan. escorts income plan . escorts liquid plan) The risk and return for the above prescribed funds are Calculated and compared with risk and returns of nifty index Data analysis: The present project work has been analyzed using time series analysis with The formulas applied in the calculations are as follows Closing price –opening price RETURNS = Opening price graphical presentation. icici prudential income plan – institutional . jm g-sec fund .pf option .treasury plan .t. reliance monthly income plan – growth .regular plan – growth. fact sheets e. jm nifty plus fund . Research design: The project has been done by following 12 different funds Between 01-04-2008 to 31-03-2009 (icici prudential gilt fund . *100 Standard deviation = 11 .RESEARCH METHODOLOGY Sources of data: For the project study the data has been collected from the secondary sources like websites. escorts gilt fund .investment plan .regular plan – dividend . icici prudential gilt fund . reliance liquid fund . jm gsec fund .investment plan .c. reliance liquidity fund .
CHAPTER – II 12 .
540 bn. but it accelerated from the year 1987 when non-UTI players entered the industry. the monopoly of the market had seen an ending phase. to market the product correctly abreast of selling. constitute less than 11% of the total deposits held by the Indian banking industry. Putting the AUM of the Indian Mutual Funds Industry into comparison. Hence. 67bn. In the past decade. both qualitywise as well as quantitywise. Indian mutual fund industry had seen a dramatic imporvements. the total of it is less than the deposits of SBI alone. Though the growth was slow. 470 bn in March 1993 and till April 2004. 13 . it is the prime responsibility of all mutual fund companies. it reached the height of 1. the Assets Under Management (AUM) was Rs.INDUTSTRY PROFILEMUTUAL FUNDS INDUSTRY IN INDIA The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Before. The private sector entry to the fund family rose the AUM to Rs. Large sections of Indian investors are yet to be intellectuated with the concept. The main reason of its poor growth is that the mutual fund industry in India is new in the country.
giving the Indian investors a wider choice of fund families.700 crores of assets under management. THIRD PHASE . In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. a new era started in the Indian mutual fund industry. FIRST PHASE . The end of 1993 marked Rs. except UTI were to be registered and governed. under which all mutual funds. Indian Bank Mutual Fund (Nov 89). there 14 . The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996.1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS) Entry of non-UTI mutual funds.The mutual fund industry can be broadly put into four phases according to the development of the sector. As at the end of January 2003.6. Bank of India (Jun 90).47. Each phase is briefly described as under. Also. with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. 1993 was the year in which the first Mutual Fund Regulations came into being.1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS) With the entry of private sector funds in 1993. The number of mutual fund houses went on increasing. SBI Mutual Fund was the first followed by Canbank Mutual Fund (Dec 87). The industry now functions under the SEBI (Mutual Fund) Regulations 1996. At the end of 1988 UTI had Rs. SECOND PHASE .1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. Bank of Baroda Mutual Fund (Oct 92). The first scheme launched by UTI was Unit Scheme 1964.004 as assets under management. Punjab National Bank Mutual Fund (Aug 89). It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. LIC in 1989 and GIC in 1990.
29. the mutual fund industry has entered its current phase of consolidation and growth.805 crores. sponsored by SBI. The Unit Trust of India with Rs. The second is the UTI Mutual Fund Ltd. 1. 15 . The major players in the Indian Mutual Fund Industry are: TYPES OF MUTUAL FUNDS General Classification of Mutual Funds Open-end Funds / Closed-end Funds Open-end Funds: Funds that can sell and purchase units at any point in time are classified as Open-end Funds.835 crores (as on January 2003). An open-end fund is not required to keep selling new units to the investors at all times but is required to always repurchase. conforming to the SEBI Mutual Fund Regulations.000 crores of AUM and with the setting up of a UTI Mutual Fund. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. FOURTH PHASE . The NAV of an open-end fund is calculated every day. It was bifurcated into two separate entities.541 crores of assets under management was way ahead of other mutual fund.21. The fund size (corpus) of an open-end fund is variable (keeps changing) because of continuous selling (to investors) and repurchases (from the investors) by the fund. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.153108 crores under 421 schemes. BOB and LIC. The Specified Undertaking of Unit Trust of India. which manage assets of Rs. PNB.76. there were 29 funds.SINCE FEBRUARY 2003 This phase had bitter experience for UTI. 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. and with recent mergers taking place among different private sector funds. As at the end of September.were 33 mutual funds with total assets of Rs. It is registered with SEBI and functions under the Mutual Fund Regulations. when an investor wants to sell his units. 2004.44.
No-Load Fund: All those funds that do not charge any of the above mentioned loads are known as No-load Funds. the percentage of exit load reduces as the investor stays longer with the fund. In this case. A load fund may impose following types of loads on the investors: • Entry Load – Also known as Front-end load. Load Funds/no-load funds Load Funds: Mutual Funds incur various expenses on marketing. Closed-end Funds are listed on the stock exchanges where investors can buy/sell units from/to each other. the corpus of the Fund and its outstanding units do get changed. Exit load is deducted from the redemption proceeds to an outgoing investor. portfolio churning. SEBI provides investors with two avenues to liquidate their positions: 1. • Exit Load – Also known as Back-end load. Entry load is deducted from the investor’s contribution amount to the fund. advertising. The corpus of a Closed-end Fund remains unchanged at all times. Contingent Deferred Sales Charge (CDSS) – In some schemes. distribution. to protect the interests of the investors. it refers to the load charged to an investor at the time of his entry into a scheme. This type of load is known as Contingent Deferred Sales Charge. Many funds recover these expenses from the investors in the form of load. The trading is generally done at a discount to the NAV of the scheme. Tax-exempt Funds/ Non-Tax-exempt Funds 16 . • • Deferred Load – Deferred load is charged to the scheme over a period of time.Closed-end Funds: Funds that can sell a fixed number of units only during the New Fund Offer (NFO) period are known as Closedend Funds. However. these charges are imposed on an investor when he redeems his units (exits from the scheme). The NAV of a closed-end fund is computed on a weekly basis (updated every Thursday). Closed-end Funds may also offer "buy-back of units" to the unit holders. These funds are known as Load Funds. buying and redemption of units by the investors directly from the Funds is not allowed. 2. fund manager’s salary etc. After the closure of the offer.
Tax-exempt Funds: Funds that invest in securities free from tax are known as Tax-exempt Funds. Non-Tax-exempt Funds: Funds that invest in taxable securities are known as Non-Tax-exempt Funds. STT is deducted from the redemption proceeds to an investor BROAD MUTUAL FUND TYPES 17 . except open-end equity oriented funds are liable to pay tax on distribution income. all funds. In India. All open-end equity oriented funds are exempt from distribution tax (tax for distributing income to investors). which are taxable. Profits arising out of sale of units by an investor within 12 months of purchase are categorized as short-term capital gains. Sale of units of an equity oriented fund is subject to Securities Transaction Tax (STT). Long term capital gains and dividend income in the hands of investors are tax-free.
there are following types of equity funds: a. It is advisable that an investor looking to invest in an equity fund should invest for long term i. Growth Funds: Growth Funds also invest for capital appreciation (with time horizon of 3 to 5 years) but they are different from Aggressive Growth Funds in the sense that they invest in companies that are 18 .e. fund managers aspire for maximum capital appreciation and invest in less researched shares of speculative nature. Equity Funds: Equity funds are considered to be the more risky funds as compared to other fund types. but they also provide higher returns than other funds. There are different types of equity funds each falling into different risk bracket. In the order of decreasing risk level. are prone to higher risk than other equity funds. Because of these speculative investments Aggressive Growth Funds become more volatile and thus.1. for 3 years or more. Aggressive Growth Funds: In Aggressive Growth Funds. b.
However. However. Sector Funds: Equity funds that invest in a particular sector/industry of the market are known as Sector Funds. Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower market capitalization than large capitalization companies are called Mid-Cap or Small-Cap Funds. ELSS investors are eligible to claim deduction from taxable income (up to Rs 1 lakh) at the time of filing the income tax return. Foreign securities funds achieve international diversification and hence they are less risky than sector funds. 2500 crores but more than Rs.expected to outperform the market in the future. foreign securities funds are exposed to foreign exchange rate risk and country risk. Auto. Market Capitalization of a company can be calculated by multiplying the market price of the company's share by the total number of its outstanding shares in the market. One prominent type of diversified equity fund in India is Equity Linked Savings Schemes (ELSS). These funds are well diversified and reduce sector-specific or company-specific risk. blue chip companies (less than Rs. ELSS usually has a lock-in period and in case of any redemption by the 19 . diversified equity funds invest mainly in equities without any concentration on a particular sector(s). There are following types of speciality funds: 1. As per the mandate. Speciality funds are concentrated and thus. Speciality Funds: Speciality Funds have stated criteria for investments and their portfolio comprises of only those companies that meet their criteria. 500 crores. Banking. a minimum of 90% of investments by ELSS should be in equities at all times. Diversified Equity Funds: Except for a small portion of investment in liquid money market. Foreign Securities Funds: Foreign Securities Equity Funds have the option to invest in one or more foreign companies. are comparatively riskier than diversified funds. 2. investment gets risky. Market capitalization of Mid-Cap companies is less than that of big. The shares of Mid-Cap or Small-Cap Companies are not as liquid as of LargeCap Companies which gives rise to volatility in share prices of these companies and consequently. Without entirely adopting speculative strategies. 3. Pharmaceuticals or Fast Moving Consumer Goods) which is why they are more risky than equity funds that invest in multiple sectors. 4. The exposure of these funds is limited to a particular sector (say Information Technology. 500 crores) and Small-Cap companies have market capitalization of less than Rs. like all other funds diversified equity funds too are exposed to equity market risk. Growth Funds invest in those companies that are expected to post above average earnings in the future. Criteria for some speciality funds could be to invest/not to invest in particular regions/companies. c.
debt (or income) funds distribute large fraction of their surplus to investors. Although not yet available in India. The portfolio of these funds comprises of the same companies that form the index and is constituted in the same proportion as the index. Although debt securities are generally less risky than equities. financial institutions. they are subject to credit risk (risk of default) by the issuer at the time of interest or principal payment. In order to ensure regular income to investors. Debt funds that target high returns are more risky. d. Focused Debt Funds: Unlike diversified debt funds. is shared by all investors which further reduces risk for an individual investor. there can be following types of debt funds: a. these funds are conceivable and may be offered to investors very soon. Some examples of focused debt funds are sector. b. funds that invest only in Tax Free Infrastructure or Municipal Bonds. banks.) are known as Debt / Income Funds. Diversified Debt Funds: Debt funds that invest in all securities issued by entities belonging to all sectors of the market are known as diversified debt funds. are more risky. Equity Index Funds: Equity Index Funds have the objective to match the performance of a specific stock market index. Debt funds are low risk profile funds that seek to generate fixed current income (and not capital appreciation) to investors. specialized and offshore debt funds. focused debt funds are narrow focus funds that are confined to investments in selective debt securities. To minimize the risk of default. Based on different investment objectives. Because of their narrow orientation.Debt/IncomeFunds: Funds that invest in medium to long-term debt instruments issued by private companies. Narrow indices are less diversified and therefore. 2. issued by companies of a specific sector or industry or origin. focused debt funds are more risky as compared to diversified debt funds. governments and other entities belonging to various sectors (like infrastructure companies etc. Sensex) are e. Less risky than equity index funds that follow narrow sectoral indices (like BSEBANKEX or CNX Bank Index etc). on account of default by a debt issuer.investor before the expiry of the lock-in period makes him liable to pay income tax on such income(s) for which he may have received any tax exemption(s) in the past. 20 . The best feature of diversified debt funds is that investments are properly diversified into all sectors which results in risk reduction. Equity index funds that follow broad indices (like S&P CNX Nifty. debt funds usually invest in securities from issuers who are rated by credit rating agencies and are considered to be of "Investment Grade". Any loss incurred.
Money Market/Liquid Funds: Money market / liquid funds invest in short-term (maturing within one year) interest bearing debt instruments.GiltFunds Also known as Government Securities in India. like all debt funds. thus making money market / liquid funds the safest investment option when compared with other mutual fund types. even money market / liquid funds are exposed to the interest rate risk. SEBI permits only those funds to offer assured return schemes whose sponsors have adequate net-worth to guarantee returns in the future. but there can be funds that come with a lock-in period and offer assurance of annual returns to investors during the lock-in period. However. However. Fixed term plan series usually invest in debt / income schemes and target short-term investors. The objective of fixed term plan schemes is to e. However. These funds are generally debt funds and provide investors with a low-risk investment opportunity. Monthly Income Plans of UTI) that assured specified returns to investors in the future. fixed term plans are not listed on the exchanges. d. Commercial papers (issued by companies) and Certificates of Deposit (issued by banks).Closed-end 3. gilt funds too are exposed to interest rate risk. Fixed Term Plan Series: Fixed Term Plan Series usually are closed-end schemes having short term maturity period (of less than one year) that offer a series of plans and issue units to investors at regular intervals. 4. In the past. UTI had offered assured return schemes (i. 1. The typical investment options for liquid funds include Treasury Bills (issued by governments). Eventually. UTI was not able to fulfill its promises and faced large shortfalls in returns.Open-end 2. To safeguard the interests of investors. Assured Return Funds: Although it is not necessary that a fund will meet its objectives or provide assured returns to investors. f. Any shortfall in returns is suffered by the sponsors or the Asset Management Companies (AMCs). Interest rates and prices of debt securities are inversely related and any change in the interest rates results in a change in the NAV of debt/gilt funds in an opposite direction. Currently. 21 . these investments have little credit risk (risk of default) and provide safety of principal to the investors. the security of investments depends upon the net worth of the guarantor (whose name is specified in advance on the offer document). These securities are highly liquid and provide safety of investment. Gilt Funds invest in government papers (named dated securities) having medium to long term maturity period.e. Issued by the Government of India. no AMC in India offers assured return schemes to investors. Gratify investors by generating some expected returns in a short period. Unlike closed-end funds. though possible.c. government had to intervene and took over UTI's payment obligations on itself.
Exchange Traded Funds follow stock market indices and are traded on stock exchanges like a single stock at index linked prices. There are following types of hybrid funds in India: a. these funds are quite popular abroad.5. 7. flexibility of holding a single share (tradable at index linked prices) at the same time. A commodity fund that invests in a single commodity or a group of commodities is a specialized commodity fund and a commodity fund that invests in all available commodities is a diversified commodity fund and bears less risk than a specialized commodity fund. hybrid funds are those funds whose portfolio includes a blend of equities. crude oil etc. The objective of these funds may be to generate regular income for investors or capital appreciation. Recently introduced in India. The level of risks involved in these funds is lower than growth funds and higher than income funds. are known as Specialized Real Estate Funds. Balanced funds are appropriate for conservative investors having a long term investment horizon. 22 . debts and money market securities. The biggest advantage offered by these funds is that they offer diversification. “Precious Metals Fund” and Gold Funds (that invest in gold. moderate capital appreciation and at the same time minimizing the risk of capital erosion. The objectives of balanced funds are to reward investors with a regular income. food grains. Hybrid Funds: As the name suggests. These funds invest in companies having potential for capital appreciation and those known for issuing high dividends. b. RealEstate Funds: Funds that invest directly in real estate or lend to real estate developers or invest in shares/securitized assets of housing finance companies. Hybrid funds have an equal proportion of debt and equity in their portfolio. convertible securities. Growth-and-Income Funds – Funds that combine features of growth funds and income funds are known as Growth-and-Income Funds. Commodity Funds: Those funds that focus on investing in different commodities (like metals.ExchangeTradedFunds(ETF): Exchange Traded Funds provide investors with combined benefits of a closed-end and an open-end mutual fund. 8.) or commodity companies or commodity futures contracts are termed as Commodity Funds. 6. and equity and preference shares held in a relatively equal proportion. gold futures or shares of gold mines) are common examples of commodity funds. Balanced Funds – The portfolio of balanced funds include assets like debt securities.
but do invest in other mutual fund schemes offered by different AMCs. different mutual fund schemes are exposed to different levels of risk and investors should know the level of risks associated with these schemes before investing. Fund of Funds maintain a portfolio comprising of units of other mutual fund schemes. However. which further helps in diversification of risks. Risk Hierarchy of Different Mutual Funds: Thus.9. just like conventional mutual funds maintain a portfolio comprising of equity/debt/money market instruments or non financial assets. Fund of Funds: Mutual funds that do not invest in financial or physical assets. The graphical representation hereunder provides a clearer picture of the relationship between mutual funds and levels of risk associated with these funds: 23 . are known as Fund of Funds. the expenses of Fund of Funds are quite high on account of compounding expenses of investments into different mutual fund schemes. Fund of Funds provide investors with an added advantage of diversifying into different mutual fund schemes with even a small amount of investment.
The National Stock Exchange of India Limited 24 .
byNSE. 1956 in April 1993. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. Group 25 . equity derivatives. The Capital Market (Equities) segment commenced operations in November 1994 and operationsinDerivativessegmentcommencedinJune2000. stock derivatives and the first volatility index . Interest Rate Futures was introduced for the first time in India by NSE on 31st August 2009. The following years witnessed rapid development of Indian capital market with introduction of internet trading.The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. giving them wide range of products to take care of their evolving needs. now both the retail and institutional investors can participate in equities.IndiaVIXinApril2008. Based on the recommendations. With this. It recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. exactly after one year of the launch of Currency Futures. August 2008 saw introduction of Currency derivatives in India with the launch of Currency Futures in USD INR by NSE. currency and interest rate derivatives. Exchange traded funds (ETF). NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.
IT NSE Milestones 26 .NSCCL NCCL NSETECH DotEx Intl. IISL NSE. Ltd.
November 1992 Incorporation 27 .
April 1993 May 1993 June 1994 November 1994 March 1995 April 1995 June 1995 July 1995 October 1995 April 1996 April 1996 June 1996 November 1996 November 1996 December 1996 December 1996 December 1996 February 1997 November 1997 May 1998 May 1998 July 1998 August 1998 February 1999 April 1999 October 1999 January 2000 February 2000 June 2000 September 2000 Recognition as a stock exchange Formulation of business plan Wholesale Debt Market segment goes live Capital Market (Equities) segment goes live Establishment of Investor Grievance Cell Establishment of NSCCL. subhash kumar Launch of NSE Research Initiative Commencement of Internet Trading Commencement of Derivatives Trading (Index Futures) Launch of 'Zero Coupon Yield Curve' 28 . India Index Services & Products Limited (IISL) Launch of NSE's Web-site: www. first depository in India. co-promoted by NSE Best IT Usage award by Computer Society of India Commencement of trading/settlement in dematerialised securities Dataquest award for Top IT User Launch of CNX Nifty Junior Regional clearing facility goes live Best IT Usage award by Computer Society of India Promotion of joint venture.nse.in Launch of NSE's Certification Programme in Financial Market CYBER CORPORATE OF THE YEAR 1998 award Launch of Automated Lending and Borrowing Mechanism CHIP Web Award by CHIP magazine Setting up of NSE. the first Clearing Corporation Introduction of centralized insurance cover for all trading members Establishment of Investor Protection Fund Became largest stock exchange in the country Commencement of clearing and settlement by NSCCL Launch of S&P CNX Nifty Establishment of Settlement Guarantee Fund Setting up of National Securities Depository Limited.co.IT Mr.
IT Ltd.November 2000 December 2000 June 2001 July 2001 November 2001 December 2001 January 2002 May 2002 October 2002 January 2003 June 2003 August 2003 June 2004 August 2004 March 2005 June 2005 December 2006 January 2007 March 2007 June 2007 October 2007 January 2008 March 2008 April 2008 April 2008 August 2008 August 2009 November 2009 December 2009 Launch of Broker Plaza by Dotex International. New Delhi Launch of Futures & options in BANK Nifty Index 'Derivative Exchange of the Year'. Commencement of WAP trading Commencement of trading in Index Options Commencement of trading in Options on Individual Securities Commencement of trading in Futures on Individual Securities Launch of NSE VaR for Government Securities Launch of Exchange Traded Funds (ETFs) NSE wins the Wharton-Infosys Business Transformation Award in the Organization-wide Transformation category Launch of NSE Government Securities Index Commencement of trading in Retail Debt Market Launch of Interest Rate Futures Launch of Futures & options in CNXIT Index Launch of STP Interoperability Launch of NSE’s electronic interface for listed companies ‘India Innovation Award’ by EMPI Business School.com NSE launches derivatives on Nifty Junior & CNX 100 NSE launches derivatives on Nifty Midcap 50 Introduction of Mini Nifty derivative contracts on 1st January 2008 Introduction of long term option contracts on S&P CNX Nifty Index Launch of India VIX Launch of Securities Lending & Borrowing Scheme Launch of Currency Derivatives Launch of Interest Rate Futures Launch of Mutual Fund Service System Commencement of settlement of corporate bonds 29 . a joint venture between NSE. by Asia Risk magazine Launch of NSE – CNBC TV 18 media centre NSE. and iflex Solutions Ltd. CRISIL announce launch of IndiaBondWatch.
It uses satellite communication technology to energies participation from around 200 cities spread all over the country. bring about innovations in products and services. which is expected to provide a platform for taking up all IT related assignments of NSE. With up gradation of trading hardware. 30 . capacity enhancement measures were taken up in regard to the trading systems so as to effectively meet the requirements of increased users and associated trading loads.February 2010 Launch of Currency Futures on additional currency pairs Technology Across the globe. At the server end. all trading information is stored in an in-memory database to achieve minimum response time and maximum system availability for users. NSE Technology Services Ltd. NEAT is a state-of-the-art client server based application. which are cheaper. Technology has enabled organizations to build new sources of competitive advantage. developments in information. Stock exchanges all over the world have realized the potential of IT and have moved over to electronic trading systems. NSE today can handle up to 15 million trades per day in Capital Market segment. NSE stresses on innovation and sustained investment in technology to remain ahead of competition. NSE's IT set-up is the largest by any company in India. NSE set up a separate company. NSE believes that technology will continue to provide the necessary impetus for the organization to retain its competitive edge and ensure timeliness and satisfaction in customer service. have wider reach and provide a better mechanism for trade and post trade execution. In recognition of the fact that technology will continue to redefine the shape of the securities industry. In order to capitalize on in-house expertise in technology. The trading server software runs on a fault tolerant STRATUS main frame computer while the client software runs under Windows on PCs. and to provide for new business opportunities. In the recent past. communication and network technologies have created paradigm shifts in the securities market operations.
Calcutta and Chennai. NSE is displaying its live stock quotes on the web site(www. This is a major project involving use of X. The NSE. There are over 15 large computer systems which include non-stop fault-tolerant computers and high end UNIX servers. we have also set up our own Web site. design and development of in-house systems and design and implementationoftelecommunicationsolutions.The telecommunications network which was using X. In keeping with the current trend. Delhi. NSE today allows members to provide internet trading facility to their clients through the use of NOW (NSE on web). NSE has gone online on the Internet. a corporate network has been implemented. a shared web infrastructure. connecting all the offices at Mumbai.25 and IP in parallel and ensuring smooth transition to IP. In an ongoing effort to improve NSE's infrastructure.com)whichareupdatedonline.nseindia. This coupled with the nation wide VSAT network makes NSE the country's largest InformationTechnologyuser. Today it supports more than 2000 VSATs and 3000 leased lines across the country. anywhere in India. 31 .Ends. system and database administration.network is the largest private wide area network in the country and the first extended C. WDM are linked to the central computer at the NSE through dedicated leased lines and VSAT terminals. Apart from having multiple internet links and our own domain for internal browsing and e-mail purposes. Currently. operational under one roof to support the NSE applications. Currently more than 9000 users are trading on the real time-online NSE application.Band VSAT network in the world. procured from HP for the back office processing. The Exchange uses powerful RISC -based UNIX servers. The latest software platforms like ORACLE 10g RDBMS. have been used for the Exchange applications. The trading members on the various market segments such as CM / F&O. Each trading member trades on the NSE with other members through a PC located in the trading member's office. The Exchange currently manages its data centre operations.25 protocol and is the backbone of the automated trading system is being upgraded to use the more popular and modern IP Protocol. This corporate network enables speedy interoffice communications and data and voice connectivity between offices. etc. NSE is one of the largest interactive VSAT based stock exchanges in the world. SQL/ORACLE FORMS Front .
Indices NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices. including • • • • • S&P CNX Nifty(Standard & Poor's CRISIL NSE Index) CNX Nifty Junior CNX 100 (= S&P CNX Nifty + CNX Nifty Junior) S&P CNX 500 (= CNX 100 + 400 major players across 72 industries) CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200) CHAPTER – III 32 .
LITERATURE SURVEY 33 .
34 . who using his investment management skills and necessary research works ensures much better return than what an investor can manage on his own. Every Mutual Fund is managed by a fund manager. a mutual fund can not deviate from its stated objectives at any point of time. Since the stated investment objective of a mutual fund scheme generally forms the basis for an investor's decision to contribute money to the pool.INTRODUCTION TO MUTUAL FUND Mutual fund is a trust that pools money from a group of investors (sharing common financial goals) and invest the money thus collected into asset classes that match the stated investment objectives of the scheme. The capital appreciation and other incomes earned from these investments are passed on to the investors (also known as unit holders) in proportion of the number of units they own.
C. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors. Now if an investor 'X' owns 5 units of this scheme 35 .e. he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund).000/10. debentures etc) is reflected in the Net Asset Value (NAV) of the scheme.00 D. Then the NAV of this scheme = (A)/(B). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. i.000.000 B. If the market value of the assets of a fund is Rs.000 or 10. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. Any change in the value of the investments made into capital market instruments (such as shares. The total number of units issued to the investors is equal to 10. 100. For example: A. 100.When an investor subscribes for the units of a mutual fund.
Then his total contribution to the fund is Rs. 6. mutual funds pay lesser transaction costs. 8. All funds are registered with SEBI and complete transparency is forced. 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. 9. The risk in a diversified portfolio is lesser than investing in merely 2 or 3 securities. Disadvantages of Mutual Funds: • Professional Management . 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). 36 . We'll talk about this in detail in a later section. All material facts are disclosed to investors as required by the regulator. Liquidity: An investor may not be able to sell some of the shares held by him very easily and quickly. Management is by no means infallible.Did you notice how we qualified the advantage of professional management with the word "theoretically"? Many investors debate whether or not the so-called professionals are any better than you or I at picking stocks. whereas units of a mutual fund are far more liquid. even if the fund loses money. Flexibility: Investors also benefit from the convenience and flexibility offered by Mutual Funds. 50 (i. Number of units held multiplied by the NAV of the scheme) ADVANTAGES OF MUTUAL FUND 1. Transparency: Funds provide investors with updated information pertaining to the markets and the schemes. Investors can switch their holdings from a debt scheme to an equity scheme and vice-versa.e. Safety: Mutual Fund industry is part of a well-regulated investment environment where the interests of the investors are protected by the regulator. 2. Low Transaction Costs: Due to the economies of scale (benefits of larger volumes). Option of systematic (at regular intervals) investment and withdrawal is also offered to the investors in most open-end schemes. and. These schemes further have different plans/options 7. Investors have the option of investing in a scheme having a correlation between its investment objectives and their own financial goals. Choice of Schemes: Mutual funds provide investors with various schemes with different investment objectives. the manager still takes his/her cut. 3.E. Less Risk: Investors acquire a diversified portfolio of securities even with a small investment in a Mutual Fund. 5. These benefits are passed on to the investors. 4.
MUTUAL FUND STRUCTURE The SEBI (Mutual Funds) Regulations 1993 define a mutual fund (MF) as a fund established in the form of a trust by a sponsor to raise monies by the Trustees through the sale of units to the public under one or more schemes for in vesting in securities in accordance with these regulations. These regulations have since been replaced by the SEBI (Mutual Funds) Regulations. It might have been more advantageous for the individual to defer the capital gains liability. the manager often has trouble finding a good investment for all the new money.It's possible to have too much diversification. high returns from a few investments often don't make much difference on the overall return. When money pours into funds that have had strong success. The sponsor establishes the mutual fund and gets its registered with SEBI. A mutual fund comprises four separate entitles.all funds are in it for a profit. a capital-gains tax is triggered. Because funds have small holdings in so many different companies. which affects how profitable the individual is from the sale. AMC and custodian. namely sponsor. fund managers don't consider your personal tax situation.When making decisions about your money. 37 . • Dilution . mutual fund trust.Mutual funds don't exist solely to make your life easier . For example. when a fund manager sells a security. The mutual fund industry is masterful at burying costs under layers of jargon. These costs are so complicated that in this tutorial we have devoted an entire section to the subject. Dilution is also the result of a successful fund getting too big. 1996. • Taxes . The structure indicated by the new regulations is indicated as under.• Costs .
an investor must first identify his or her goals and desires for the money being invested. see Determining Risk and the Risk Pyramid and A Guide To Portfolio Construction.10 core) of the asset management company. In addition. or is a current income preferred? Will the money be used to pay for college expenses. what good is an investment if the investor has trouble sleeping at night? (For more insight. Is the investor able to afford and mentally accept dramatic swings in portfolio value? Or. After all. It is the job of the MF trustees to see that schemes floated and managed by the AMC appointed by the trustees are in accordance with the trust deed and SEBI guidelines CHOOSING A FUND Following steps are involved in choosing a fund IdentifyingGoalsandRiskTolerance Before acquiring shares in any fund. is a more conservative investment warranted? Identifying risk tolerance is as important as identifying a goal. 1908. investors must also consider the issue of risk tolerance. Are long-term capital gains desired. The sponsor is required to contribute at lease 40% of the minimum net worth (Rs.) 38 . The board of trustees manages the MF and the sponsor executes the trust deeds in favor of the trustees. or to supplement a retirement that is decades away? Identifying a goal is important because it will enable you to dramatically whittle down the list of the more than 8.000 mutual funds in the public domain.The mutual fund needs to be constituted in the form of a trust and the instrument of the trust should be in the form of a deed registered under the provisions of the Indian Registration Act.
Finally, the issue of time horizon must be addressed. Investors must think about how long they can afford to tie up their money, or if they anticipate any liquidity concerns in the near future. This is because mutual funds have sales charges that can take a big bite out of an investor's return over short periods of time. Ideally, mutual fund holders should have an investment horizon with at least five years or more. (For related reading, see Disadvantages Of Mutual Funds.)
If the investor intends to use the money in the fund for a longer term need and is willing to assume a fair amount of risk and volatility, then the style/objective he or she may be suited for is a long-term capital appreciation fund. These types of funds typically hold a high percentage of their assets in common stocks, and are therefore considered to be volatile in nature. They also carrythepotentialforalargerewardovertime. Conversely, if the investor is in need of current income, he or she should acquire shares in an income fund. Government and corporate debt are the two of the more common holdings in an incomefund. Of course, there are times when an investor has a longer term need, but is unwilling or unable to assume substantial risk. In this case, a balanced fund, which invests in both stocks and bonds, maybethebestalternative.
Mutual funds make their money by charging fees to the investor. It is important to gain an understanding of the different types of fees that you may face when purchasing an investment. Some funds charge a sales fee known as a load fee, which will either be charged upon initial investment or upon sale of the investment. A front-end load/fee is paid out of the initial investment made by the investor while a back-end load/fee is charged when an investor sells his or her investment, usually prior to a set time period, such as seven years from purchase. Both front- and back-end loaded funds typically charge 3-6% of the total amount invested or distributed, but this number can be as much as 8.5% by law. Its purpose is to discourage turnover and to cover any administrative charges associated with the investment. Depending on the mutual fund, the fees may go to a broker for selling the mutual fund or to the fund itself, which mayresultinloweradministrationfeeslateron.
To avoid these sales fees, look for no-load funds, which don't charge a front- or back-end load/fee. However, be aware of the other fees in a no-load fund, such as the management expense ratio and other administration fees, as they may be very high. Still other funds charge 12b-1 fees, which are baked into the share price and are used by the fund for promotions, sales and other activities related to the distribution of fund shares. These fees come right off of the reported share price at a predetermined point in time. As a result, investors may not be aware of the fee at all. 12b-1 fees can, by law, be as much as 0.75% of a fund's averageassetsperyear. One final tip when perusing mutual fund sales literature: The investor should look for the management expense ratio. In fact, that one number can help clear up any and all confusion as it relates to sales charges. The ratio is simply the total percentage of fund assets that are being charged to cover fund expenses. The higher the ratio, the lower the investor's return will be at the endoftheyear.
As with all investments, investors should research a fund's past results. To that end, the following is a list of questions that perspective investors should ask themselves when reviewing the historical record:
Did the fund manager deliver results that were consistent with general market returns? Was the fund more volatile than the big indexes (meaning did its returns vary dramatically throughout the year)? Was there an unusually high turnover (which can result in larger tax liabilities for the investor)?
This information is important because it will give the investor insight into how the portfolio manager performs under certain conditions, as well as what historically has been the trend in termsofturnoverandreturn. With that in mind, past performance is no guarantee of future results. For this reason, prior to buying into a fund, it makes sense to review the investment company's literature to look for information about anticipated trends in the market in the years ahead. In most cases, a candid fund manager will give the investor some sense of the prospects for the fund and/or its holdings in the year(s) ahead as well as discuss general industry trends which may be helpful. (For more insight,seeDiggingDeeper:TheMutualFundProspectus.)
Typically, the size of a fund does not hinder its ability to meet its investment objectives. However, there are times when a fund can get too big. A perfect example is Fidelity's Magellan Fund. Back in 1999 the fund topped $100 billion in assets, and for the first time, it was forced to change its investment process to accommodate the large daily (money) inflows. Instead of being nimble and buying small and mid cap stocks, it shifted its focus primarily toward larger capitalization growth stocks. As a result, its performance has suffered. (To learn more, check out DoesSizeReallyMatter?)
So how big is too big? There are no benchmarks that are set in stone, but that $100 billion mark certainly makes it difficult for a fund manager to acquire a position in a stock and dispose of it without running up the stock dramatically on the way up, and depressing it on the way down. It also makes the process of buying and selling stocks with any kind of anonymity almost impossible.
Selecting a mutual fund may seem like a daunting task, but knowing your objectives and risk tolerance is half the battle. If you follow this bit of due diligence before selecting a fund, you will increase your chances of success.
The Ground rules of Mutual Fund Investing:
Moses gave to his followers 10 commandments that were to be followed till eternity. The world of investments too has several ground rules meant for investors who are novices in their own right and wish to enter the myriad world of investments. These come in handy for there is every possibility of losing what one has if due care is not taken. 1.
Assess yourself: Self-assessment of one's needs; expectations and risk profile is of prime importance
failing which; one will make more mistakes in putting money in right places than otherwise. One should identify the degree of risk bearing capacity one has and also clearly state the expectations from the investments. Irrational expectations will only bring pain. 2.
Try to understand where the money is going: It is important to identify the nature of
investment and to know if one is compatible with the investment. One can lose substantially if one picks the wrong kind of mutual fund. In order to avoid any confusion it is better to go through the literature such as offer document and fact sheets that mutual fund companies provide on their funds. 3.
Don't rush in picking funds, think first: one first has to decide what he wants the money for
and it is this investment goal that should be the guiding light for all investments done. It is thus important to
frankly. Identifying the proposed investment philosophy of the fund will give an insight into the kind of risks that it shall be taking in future. as it will only add to the risk of the entire portfolio. the only quantitative way to judge how good a fund is at present. Invest. As we said earlier. Don't speculate: A common investor is limited in the degree of risk that he is willing to take. good Mutual fund companies over are known by their AMCs and this fame is directly linked 42 . No matter what the risk profile of a person is. However with a plethora of schemes to choose from the retail investor faces problems in selecting funds. Diversification even in money in the hands of several fund managers. 5. even investors of equity should be judicious and invest some portion of the investment in debt. with about 34 players and more than five hundred schemes. 6. since it is extremely difficult to know when to enter or exit the market. Factors such as investment strategy and management style are qualitative. he would stand a better chance of generating more returns than the market for the entire duration. The basic philosophy of Rupee cost averaging would suggest that if one invests regularly through the ups and downs of the market. One would do well to remember that nobody can perfectly time the market so staying invested is the best option unless there are compelling reasons to exit. Performance Measures of Mutual Funds Mutual Fund industry today. Mutual funds invest with a certain ideology such as the "Value Principle" or "Growth Philosophy". Don't put all the eggs in one basket: This old age adage is of utmost importance. This might reduce the maximum return possible. it is always advisable to diversify the risks associated. 4. Worldwide. but will also reduce the risks. but the funds record is an important indicator too. Both have their share of critics but both philosophies work for investors of different kinds. Therefore. it is. Though past performance alone cannot be indicative of future performance. It is thus of key importance that there is thought given to the process of investment and to the time horizon of the intended investment. One should abstain from speculating which in' other words would mean getting out of one fund and investing in another with the intention of making quick money. The SIPs (Systematic Investment Plans) offered by all funds helps in being systematic. Thus. there is a need to correctly assess the past performance of different mutual funds. It is important to beat the market by being systematic. Be regular: Investing should be a habit and not an exercise undertaken at one's wishes. One should take a look at the portfolio of the funds for the purpose. is one of the most preferred investment avenues in India.know the risks associated with the fund and align it with the quantum of risk one is willing to take. if one has to really benefit from them. Excessive exposure to any specific sector should be avoided. So putting one's money in different asset classes is generally the best option as it averages the risks in each category.
which affect all the securities present in the market. money will grow more if it is invested in the stock market. several eminent authors have worked since 1960s to develop composite performance indices to evaluate a portfolio by comparing alternative portfolios within a particular risk class. called stocks. there must be some performance indicator that will reveal the quality of stock selection of various AMCs. which represents t1uctuations in the NA V of the fund vis-à-vis market. Outperforms Other Investments Historically. higher will be the risk associated with it. there are considerable advantages in investing money in stocks. over time. Return alone should not be considered as the basis of measurement of the performance of a mutual fund scheme. can be defined as variability or fluctuations in the returns generated by it. 43 . AMCs must be held accountable for their selection of stocks. Despite the risks and volatility of the stock market. in a general. higher will be its beta. By using the risk return relationship. we try to assess the competitive strength of the mutual funds vis-à-vis one another in a better way: In order to determine the risk-adjusted returns of investment portfolios. It should also include the risk taken by the fund manager because different funds will have different levels of risk attached to them. Risk associated with a fund. systematic risk can not. In other words. Beta is calculated by relating the returns on a mutual fund with the returns in the market. called unsystematic risk. Benefits of investing in stock market The stock market is a big auction house for pieces of company ownership. The higher the t1uctuations in the returns of a fund during a given period. These fluctuations in the returns generated by a fund are resultant of two guiding forces.to their superior stock selection skills. While unsystematic risk can be diversified through investments in a number of instruments. The Total Risk of a given fund is sum of these t\VO and is measured in terms of standard deviation of returns of the fund. The historical average for stock market investments is approximately eight percent per year. called market risk or systematic risk and second. t1uctuations due to specific securities present in the portfolio of the fund. On the other hand is measured in terms of Beta. the returns on investments in the market are higher than those on investments held in other markets and assets. general market fluctuations. For mutual funds to grow. This means that. Systematic risk. First. The more responsive the NA V of a mutual fund is to the changes in the market.
an investor can easily take a position in a company and leave that position in a matter of seconds.Easy Access Another advantage of stock market investments is the ease of access (and exit) in the stock market. 44 . This adds a layer of transparency in the investment. Companies that have their stocks listed in the market cover a range of industries and services. creating two ways for the stock to earn money for the investor. Dividends Investing in stocks that earn dividends is a unique advantage of the stock market. This information is available in newspapers and magazines. the vast majority of the companies release accurate information about the money they spend and earn. Easy Review and Research It's not difficult to research a company's financial statement. It's also easy to monitor the stock's share price. Stocks release a portion of the profits in the form of dividends to their stock holders. Meanwhile. Asset Diversity The diversity of options is one more advantage of investing in the stock market. Transparency While critics often point out the examples of companies that release fraudulent earnings statements as a way to taint the entire market. This offers the investor a chance to diversify his portfolio and make money in a variety of economic conditions. as well as online. the stock still has the ability to increase in price. Thanks to new Internet technology.
COMPANY PROFILE 45 .
We believe our fundamental challenge is to create a “just” society – one where everyone has equal opportunity to develop and grow. In line with its commitment to fuelling equitable growth in all segments of society. ICICI Group believes that its own long-term growth and profitability is linked to the balanced and sustainable growth of the Indian economy. ICICI Foundation is committed to making India’s economic growth more inclusive.com) CSR activities aim to more effectively direct human and financial resources towards the civil sector. 46 .ICICI GROUP COMPANIES As one of the largest and oldest financial sector conglomerates in India. ICICI Group of Companies' (www. ICICI Foundation for Inclusive Growth (ICICI Foundation) was founded by the ICICI Group in early 2008 to give focus to its efforts to promote inclusive growth amongst low-income Indian households.icicigroupcompanies. Towards this end. allowing every individual to participate in and benefit from the growth process.
Core beliefs: ICICI Foundation’s pathway towards inclusive growth and our five strategic partnerships are guided by several core beliefs: • • • Good health and basic education are fundamental prerequisites to achieving inclusive growth. strong civil society and environmental sustainability. we have chosen to collaborate with and foster independent. comprehensive access to financial services. For the Indian growth process to be truly inclusive. their ability to do so depends on the quality of their access to transformative tools such as finance. 47 . Our Approach Rather than build departments within a large. Vision our vision is a world free of poverty in which every individual has the freedom and power to create and sustain a just society in which to live. each with deep expertise in one of the five areas that we believe provide essential elements for inclusive growth: primary health. health.We hold a set of core beliefs and values that defines our pathway towards inclusive growth and guides our five strategic partnerships. monolithic foundation. responsive organizations. elementary education. While healthy and educated individuals have the capacity to transform their lives. education and access to complete financial markets are necessary but not sufficient. Mission Our mission is to empower the poor to participate in and benefit from the Indian growth process through active collaboration with government and independent organisations.
000 financial advisors operating from more than 2000 branches spread across 1800 locations across the country. venture capital and asset management. It is also the pioneer in launching innovative health care products like Diabetes Care Active and health Saver. Through ICICI Elementary Education in Pune. we support children in government-run preschools and elementary schools across India to become engaged citizens.58 billion for the year ended March 31. In addition to 48 . we support civil society organizations (CSOs) across India to be more effective by enabling them to tap into new resources and networks of support. With a strong customer focus. 37. It is the largest private sector life insurance company offering a comprehensive suite of life. the ICICI Group Companies have maintained and enhanced their leadership position in their respective sectors. The company operates on a multi-channel platform and has a distribution strength of over 2. we support children in the poorest communities across India to develop to their full potential in the critical first three years of life.721 ATMs in India and presence in 18countries. we support scalable private and community interventions as well as policies to make India's economy more environmentally sustainable from the bottom up. 2009. Partners • • • Through ICICI Child Health in Pune.793. health and pensions products. ICICI Bank is India's second-largest bank with total assets of Rs. life and general insurance.451 branches and about 4.01 billion (US$ 75 billion) at March 31.76. 3. • Through the Environmentally Sustainable Finance Group at the Centre for Development Finance in Chennai. investment banking. 2009 and profit after tax Rs. subsidiaries and affiliates in the areas of personal banking.The Foundation provides active support and mentorship to each of these strategic partners – a strategy we believe will build knowledge and specialization in each field and ensure long-term impact. Through CSO Partners in Chennai. we seek to ensure that every individual and every enterprise in India has complete access to financial services. The Bank has a network of 1. ICICI Prudential Life Insurance Company is a 74:26 joint venture with Prudential plc (UK). OVERVIEW ICICI Group 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 group companies. Through IFMR Finance Foundation in Chennai.
9% based on retail weighted premium and garnered a total premium of Rs 153. ICICI Securities Primary Dealership Limited is the largest Primary Dealer in Government Securities. One of the first entities to be granted Primary Dealership license by RBI.43% as on March 31.2% from Rs. Retail and Financial Product Distribution. a joint venture with the Canada based Fairfax Financial Holdings. ICICI Lombard General Insurance Company. I-Sec PD has been recognized as the 'Best Domestic Bond House in India' by Asia money every year from 2002 to 2007 and selected as 'Best Bond House' by Financeasia. is the largest private sector general insurance company.2% among private sector general insurance companies and an overall market share of 11. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations Corporate Finance including Equity Capital Markets Advisory Services. resource mobilization. corporate agents and brokers. It has a comprehensive product portfolio catering to all corporate and retail insurance needs and is present in over 300 locations across the country. I-Sec PD is also credited with pioneering debt market research in India.2% during fiscal 2009. 2009. with a strong franchise across the spectrum of interest rate products and services . 2009. 514.com for the years . It is an acknowledged leader in the Indian fixed income and money markets. ICICI Lombard General Insurance has achieved a market share of 27." ICICI Prudential Asset Management is the third largest mutual fund with average asset under management of Rs. ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions (including webbased services) through the largest non-banking distribution channel so as to fulfill all the diverse needs of retail and corporate customers.33 billion and a market share of 10. it also has tie-ups with various banks. In fiscal 2009. ISec PD has made pioneering contributions since inception to debt market development in India.2001. ICICI Venture is one of the largest and most successful private equity firms in India with funds under 49 . The gross return premium grew by 2. 2004 to 2007 and 2009.56 billion registering a growth of 13% and held assets of Rs. 33.45 billion in fiscal 2008 to 34. 327.the agency force.20 billion in fiscal 2009. The Company manages a comprehensive range of mutual fund schemes and portfolio management services to meet the varying investment needs of its investors through162 branches and 185 CAMS official point of transaction acceptance spread across the country. ICICI Prudential attained a market share of 10. Institutional Equities. portfolio management services and research.88 billion as on March 31.institutional sales and trading.
contributing significantly towards the growth of the Indian mutual fund industry. ICICI PRUDENTIAL ASSET MANAGEMENT ICICI Prudential Asset Management Company Ltd. the first ‘royalty-based’ structured deal in Pharma Research & Development (Dr Reddy’s Laboratories . we have over 15 years of experience and are currently managing a comprehensive range of schemes of more than 46 Mutual funds and a wide range of PMS Products for our 50 . & Prudential Plc. It has several “firsts” to its credit in the Indian Private Equity industry. 69. Information Technology. Manufacturing. Financial Services. and International Advisory Mandates for clients across international markets in asset classes like Debt. the first real estate investment (Cyber Gateway). Amongst them are India’s first leveraged buyout (Infomedia). over the years has built an enviable portfolio of companies across sectors including Life Sciences. the company has forged a position of preeminence as one of the largest Asset Management Company’s in the country.78 Crores. is a joint venture between ICICI Bank. and Real Estate thereby building sustainable value. Retail. Our Average Assets under Management (AAUM) as on September 2010 month-end in Mutual Fund Schemes stood at Rs.754. Equity and Real Estate with primary focus on risk adjusted returns.management in excess of USD 2 billion. India’s second largest commercial bank & a well-known and trusted name in the financial services in India. ICICI Venture. Media. one of the United Kingdom’s largest players in the financial services sectors. inclusive of EPFO*. This is in addition to our Portfolio Management Services. the first mezzanine financing for a acquisition (Arch Pharmalabs). As an Asset Management Company.JV) and the first fund level secondary transaction (Coller Capital). In a span of just over 12 years.
Inc.00 billion (US$ 81 billion) at 31st March. venture capital and asset management. 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). Singapore. 25 million customers and have £290 billion in assets under management. 2010 and profit after tax Rs. Bangladesh.investors. 3.25 billion (US$ 896 million) for the year ended 31st March. branches in United States. Russia and Canada. 51 . 2010. a company whose principal place of business is in the United States of America. Thailand. Hong Kong. Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates. We service this investor base with our own branch network of over 160 branches and a distribution reach of over 42.. Our UK subsidiary has established branches in Belgium and Germany. SPONSERS ICICI Bank ICICI Bank is India's second-largest bank with total assets of Rs. China.4 billion (as at 31 December 2009). They serve approximately. They are among the leading capitalized insurers in the world with an Insurance Groups Directive (IGD) capital surplus estimated at £3. South Africa.634. Sri Lanka. Malaysia and Indonesia. 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 specialized subsidiaries and affiliates in the areas of investment banking. The Bank has a network of 2016 branches and about 5219 ATM’s in India and presence in 18 countries. spread across the country. Prudential plc is an international financial services group with significant operations in Asia. 40. Prudential Plc (formerly known as Prudential Corporation plc) Prudential plc of the United Kingdom is not affiliated in any manner with Prudential Financial. Bahrain. the US and the UK. life and non-life insurance.000 channel partners. The Bank currently has subsidiaries in the United Kingdom.
protection and investment products that are specifically designed to meet the needs of customers in each of its local markets. a strong investment track record. pensions and investment products where it can maximize the advantage it has in offering with-profits and other multi-asset investment funds. It is also one of the top five providers of variable and fixed index annuities in the US. Jackson National Life Insurance Company Jackson is one of the largest life insurance companies in the US. Malaysia. Philippines. Singapore. PUE continues to focus on its core strengths including its annuities.It has a number of major competitive advantages including significant longevity experience. a highly respected brand and financial strength. Mutual Fund ICICI Prudential Mutual Fund offers a wide range of retail and corporate investment solutions across different asset classes like Equity. PCA’s asset management business in Asia has retail operations in 10 markets and it independently manages assets on behalf of a wide range of retail and institutional investors across the region. PCA provides a comprehensive range of savings. India. 52 . providing retirement savings and income solutions to more than 2. Jackson has a long and successful record of providing effective retirement solutions for their clients. and Vietnam. Founded nearly 50 years ago. multi-asset investment capabilities. Real Estate and Gold.The Group is structured around four main business units: Prudential Corporation Asia (PCA) PCA is a leading life insurer in Asia with presence in 12 markets and a top three position in seven key locations: Hong Kong.8 million customers. Fixed Income. Prudential UK & Europe (PUE) PUE is a leading life and pension’s provider to approximately 7 million customers in the UK. Indonesia.
resource bandwidth & process orientation and endeavors is to bridge the gap between savings & investments. the Fund has been consistently winning many awards in the industry at the Fund House and Scheme Levels. As one of the largest Asset Management Companies in India. we have had a successful track record in serving domestic clients across the Institutional and Retail Investor space. We are very confident in our ability to 53 . Advisory Services The International Advisory Business Division of ICICI Prudential Asset Management Company Ltd. the most recent ones being: • • ‘India Debt Fund House’ for 2009 by Morningstar The CNBC TV18 . we are advising a cumulative asset size of close to $2 Billion spanning Equity.It has been voted as the ‘Most Trusted Mutual Fund Brand’ in by Brand Equity (in their 2009 Most Trusted Brand Survey (Conducted by The Economic Times Intelligence Group and The Nielsen Company). 2010.CRISIL Mutual Fund of the Year Award 2009 in the Category – Debt Mutual Fund House of the Year The organization today is an ideal mix of investment expertise. advises offshore funds in jurisdictions spanning Japan. to help create long term wealth and value for investors through innovation. Taiwan & Singapore. Deep knowledge of the reputation. Debt & Real Estate. we present the following benefits to offshore investors: • • • • Excellent Onshore Investment Insights and Information. vision and execution capabilities of promoter-run companies. Extensive on the ground research capabilities. As on 30th June. Through the onshore presence and legacy of our parent company in India. An innate understanding of governance structures of corporate entities. consistency and sustained risk adjusted performance. Middle East. Year after year.
Government' classification. Awards and Recognition ICICI Prudential Mutual Fund has constantly been on the forefront of innovation and has introduced products aligned to meet customer needs leading to a well-diversified product portfolio. we have received valued recognition from various organizations of international repute. ICICI Prudential Gilt Fund Investment Plan .Growth. 54 . As acknowledgment of our efforts.Growth. has won the Best Fund Award over 3 & 5 Years in the 'Mixed Asset INR Flexible' classification.PF Option .enable International Investors to participate in the long-standing ‘India growth story’ and generate alpha over a medium to long term horizon. Some of the prominent awards and recognition are: Lipper Fund Awards 2010 India ICICI Prudential Dynamic Plan . has won the Best Fund Award over 3 & 5 Years in the 'Bond Indian Rupee .
2009 ICICI Prudential Tax Plan . CNBC-TV18 .Liquid Fund of the Year Morning Star Mutual Fund Awards . ICICI Prudential Gilt Fund Treasury Plan Fund .3 years performance till December 31.Runner Up Award in the ELSS Category for a 1 yr period ending Dec 2009.Gold Open Ended Equity (Tax Planning) .Gilt Fund of the Year ICICI Prudential Liquid Plan .ICRA Mutual Fund Awards – 2010 ICICI Prudential Discovery Fund . 2009.PF Option .Gold Open Ended Equity Diversified Defensive .Seven Star Funds .Seven Star Fund – Gold Open Ended Gilt’ . ICICI Prudential Tax Plan .Most Innovative Fund of the Year ICICI Prudential Gilt Fund .CRISIL Mutual Fund Awards 2009 ICICI Prudential Mutual Fund .“Debt Mutual Fund House of the Year” ICICI Prudential Target Returns Fund (There is no guarantee or assurance of returns) . 2009.1 year performance till December 31.Investment .1 year performance till December 31.2009 India Debt Fund House Award . 2009. Thomson Reuters Extel Asia Survey 2009 ICICI Prudential Mutual Fund has received the prestigious recognition of being amongst the ‘Best Overall fund Management Firm-Asia’ (ICICI Prudential Mutual Fund is the only Indian Asset 55 .Seven Star Funds .
CHAPTER – IV 56 .2009” ICICI Prudential Mutual Fund voted “Most Trusted Mutual Fund Brand” ICICI Prudential Mutual Fund also featured highest amongst the mutual fund industry peers in the Top Service Brands in India category.Management company to feature in the list of 25 Fund Management firms in Asia.) Brand Equity “Most Trusted Brands Survey . gaining the 20th position in the Survey.
PF Option returns 1 week 1 month 57 -1.Investment Plan .28 .ICICI Prudential Gilt Fund .Investment Plan .DATA ANALYSIS & INTERPRETATION Company 1 Fund 1:.PF Option Objective: The Scheme seeks to generate regular returns through investments made in Gilts ICICI Prudential Gilt Fund .08 0.
57 Risk = 18.11 41.PF Option returns 50 40 returns 30 20 10 0 -10 1 week 1 m onth 6 m onth pe riod 9 m onth 1 year returns Interpretation: 58 .Investment Plan .6 month 9 month 1 year 13.39 38.211 = IC IC I Prudential Gilt Fund .
The above table shows the returns of ICICI Prudential Gilt Fund .ICICI Prudential Gilt Fund .21.454 .And average return of this fund is 18.The risk in this fund is 18.78 Risk = 13.14 29.PF Option.Investment Plan Year 1 week 1 month 6 month 9 month 1 year 59 = returns -0.Investment Plan Objective: To generate steady and consistent returns from a basket of government securities across various maturities through proactive fund management aimed at controlling interest rate risk ICICI Prudential Gilt Fund . Company 1 Fund 2 :.96 -0.8136 .Investment Plan .37 30. It has highest returns of 41.57 for one year and lowest return -1.08 for 1week .06 10.
Investment Plan returns 35 30 25 20 15 10 5 0 -5 returns returns 1 week 1 month 6 month period 9 month 1 year Interpretation: 60 .ICICI Prudential Gilt Fund .
48 23.Institutional year 1 week 1 month 6 month 9 month 1 year 61 returns -0.91 -1.The above table shows the returns of ICICI Prudential Gilt Fund . safety and liquidity.05 14. ICICI Prudential Income Plan .11 22.Investment Plan.78for one year and lowest return -0.06for 1 month. And average return of this fund is 13. The risk in this fund is 13.854.8136.12 . It has a highest returns of 30. Company 1 Fund 3:.ICICI Prudential Income Plan – Institutional Objective: Aims at maximizing income while maintaining optimum balance of yield.
7135 = IC IC I Pru de n tia l In co m e P la n .Risk = 10.In stitution a l retu rn s 25 20 15 10 returns 5 0 -5 1 week 1 month 6 m onth perio d 9 m onth 1 year returns 62 .
08 0. Reliance Liquid Fund .05for 1 month and average return of this fund is 11.55.Treasury Plan .Institutional Plan Objective :Aims to generate optimal returns consistent with moderate risk and high liquidity.41 Risk = 13.3352 63 .Institutional Plan = year 1 week 1 month 6 month 9 month 1 year returns 0.Interpretation: The above table shows the returns of ICICI Prudential Income Plan Institutional. Company 2 Fund 1:. It has a highest returns of 23.Reliance Liquid Fund .12for one year and lowest return -1. The risk in this fund is 10.43 3.58 5.Treasury Plan .95 35.7135.
R e lia n c e L iq u id F u n d .Treasury Plan .Institutional Plan.41for one year and lowest return 0.In s t it u t io n a l P la n re t u rn s 40 35 30 25 20 15 10 5 0 1 w e e 1 m o n 6h m o n 9h m o n t1 y e a r k t t h p e rio d R e lia n c e L iq u id F u n d T re a s u ry P la n In s t it u t io n a l P la n re t u rn s Interpretation: The above table shows the returns of Reliance Liquid Fund .3352. It has a highest returns of 35. The risk in this fund is 13. Company 2 64 returns .T re a s u ry P la n . 09.08for 1 week and average return of this fund is 9.
Reliance Liquidity Fund Objective: The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity.38 24.07 0. Accordingly.44 4 24.Fund 2:.38 Risk = 11.291 = 65 . investments shall predominantly be made in Debt and Money Market Instruments. Reliance Liquidity Fund year 1 week 1 month 6 month 9 month 1 year returns 0.
38 for one year and lowest return 0.654. It has highest returns of 24.07for 1 week and average return of this fund is10.291. 66 .R elianc e Liquidity F und returns 30 25 20 returns 15 10 5 0 1 w eek 1 6 9 1 y ear m onth m onth m onth p e rio d R elianc e Liquidity F und returns Interpretation: The above table shows the returns of Reliance Reliance Liquidity Fund. The risk in this fund is 11.
Company 2 Fund 3:.21 Risk = 9.51 1.65 21.8971 = 67 .Growth year 1 week 1 month 6 month 9 month 1 year returns 0.1 21.14 20.Reliance Monthly Income Plan . Reliance Monthly Income Plan .Growth Objective:The primary investment objective of the scheme is to generate regular income in order to make regular dividend payments to unit holders and the secondary objective is growth of capital.
Company 3 Fund 1:.G rowth returns Interpretation: The above table shows the returns of Reliance Monthly Income Plan .G rowth returns 25 20 returns 15 10 5 0 1 week 1 m onth6 m onth m onth 1 y ear 9 p e rio d Relianc e M onthly Inc om e P lan . The risk in this fund is 9. It has a highest returns of 21.Relianc e M onthly Inc om e P lan .21for one year and lowest return 0.Growth.8971.51for 1 week and average return of this fund is 12.JM Nifty Plus Fund Objective:- 68 .922.
The scheme does not guarantee/indicate any returns.0232 69 .62 Risk = 16.91 37. JM Nifty Plus Fund year 1 week 1 month 6 month 9 month 1 year = returns -2.01 20.96 38. However.31 38. through deployment of surplus cash in fixed income instruments.The primary investment objective of the scheme is to generate income through arbitrage opportunities emerging out of miss-pricing between the cash market and the derivatives market &. there can be no assurance that the investment objective of the scheme will be realized.
01for 1 week and average return of this fund is 26.0232.758.JM Nifty Plus Fund returns 50 40 30 returns 20 10 0 -10 1 week 1 month 6 month 9 month 1 year period JM Nifty Plus Fu returns Interpretation: The above table shows the returns of JM Nifty plus Fund. The risk in this fund is 16. 70 .96for 6 month and lowest return -2. It has a highest returns of 38.
Company 3 Fund 2:.2416 = 71 .77 31.Regular Plan .22 -1.34 25.19 Risk = 13.Regular Plan – Growth Objective: The Scheme aims to provide ultimate level of safety to its unit holders through investments exclusively in sovereign securities issued by the central and state government.JM G-Sec Fund .Growth year 1 week 1 month 6 month 9 month 1 year returns -0.18 10. JM G-Sec Fund .
The risk in this fund is 13.19for 1 year and lowest return -1.G row th returns 35 30 25 20 returns 15 10 5 0 6 9 -5 1 w eek1 m onth m onth m onth1 y ear p e rio d JM G -S ec F und R egular P lan .G row th returns Interpretation: The above table shows the returns of JM G-Sec Fund .R egular P lan .JM G -S ec F und .Regular Plan .18for 1 month and average return of this fund is 13. It has a highest returns of 31.18. 72 .2416.Growth.
2917 73 . JM G-Sec Fund .Dividend year 1 week 1 month 6 month 9 month 1 year returns -0.Regular Plan .JM G-Sec Fund .81 31.Dividend Objective :The scheme aims to provide ultimate level of safety to its unit holders through investments exclusively in sovereign securities issued by the central and state government.22 25.12 10.Company 3 Fund 3:.3 = Risk = 13.Regular Plan .32 -1.
74 .Dividend.D ivid e n d re t u rn s Interpretation: The above table shows the returns of JM G-Sec Fund .178.D ivid e n d re t u rn s 35 30 25 20 returns 15 10 5 0 -5 1 w e e k 1 6 9 1 y ear m o n t h m o n t h m o n th p e r io d JM G -S e c F u n d R e g u la r P la n .3for 1 year and lowest return -1.JM G -S e c F u n d . The risk in this fund is 13. It has a highest returns of 31.R e g u la r P la n .291.12for 1 month and average return of this fund is 13.Regular Plan .
16 31.53 22.Escorts Gilt Fund Objective:The fund aims at providing income and capital appreciation by investing in government securities Escorts Gilt Fund year 1 week 1 month 6 month 9 month 1 year returns -0.79 14.9 = Risk = 12.7373 75 .37 -0.Company 4 Fund 1:.
486.79for 1 month and average return of this fund is 13.E s c o rt s G ilt F u n d re tu rn s 35 30 25 20 returns 15 10 5 0 -5 1 w e e k 1 m o n th6 m o n th9 m o n t h1 y e a r p e rio d E s c o rts G ilt F u n d re t u rn s Interpretation: The above table shows the returns of Escorts Gilt Fund. It has a highest returns of 31.9for 1 year and lowest return -0.7373 Company 4 Fund 2:. The risk in this fund is 12.Escorts Income Plan 76 .
95 8.64 Risk = 5.71788 = 77 .Objective:Aims to generate current income by investing predominantly in a well diversified portfolio of fixed income securities and money market instruments with moderate risk levels Escorts Income Plan year 1 week 1 month 6 month 9 month 1 year returns -0.14 10.65 -0.72 12.
98.95for 1 month and average return of this fund is 5.Escorts Liquid Plan 78 .71788.64for 1 year and lowest return -0. Company 4 Fund 3 :. It has a highest returns of 12.Escorts Income Plan returns 14 12 10 returns 8 6 4 2 0 -2 1 week 1 month 6 month 9 month 1 year period Escorts Income Plan returns Interpretation: The above table shows the returns of Escorts Income Plan. The risk in this fund is 5.
Objective:The primary investment objective of the scheme is to provide income and liquidity consistent with the prudent risk from a portfolio comprising of money market and debt instruments.79 4. The aim is to optimize returns while providing liquidity.75474 = 79 .32 9. Escorts Liquid Plan year 1 week 1 month 6 month 9 month 1 year returns 0.96 Risk = 3.15 0.81 7. This income may be complemented by possible capital appreciation.
71788 80 .606. The risk in this fund is 5.96for 1 year and lowest return 0.E sc orts Liquid P lan returns 12 10 8 returns 6 4 2 0 1 week 1 m onth 6 m onth9 m onth 1 y ear pe riod E s c orts Liquid P lan returns Interpretation: The above table shows the returns Escorts Liquid Plan.15for 1 week and average return of this fund is 4. It has a highest returns of 9.
208 1 week 1 month 6 month 9 month 1 year COMPARATIVE AVERAGE RETURNS OF FUNDS 81 .198 -36.678 -17.0853 -14.NIFTY AVERAGE RETURNS NIFTY RETURNS Nifty Returns 0.0824 9.
606 c o m p e r a t iv e a v e r a g e r e t u r n s 30 25 20 15 10 5 0 ICICI Prudential Income Reliance Liquidity Fund ICICI Prudential Gilt Fund JM Nifty Plus Fund JM G-Sec Fund Regular Escorts Income Plan average returns a ve ra g e re tu rn s c o m p a n ie s COMPARATIVE RISK OF FUNDS COMPANIES ICICI Prudential Gilt Fund .AVERAGE RETURNS Companies ICICI Prudential Gilt Fund .09 10.Growth JM Nifty Plus Fund JM G-Sec Fund .18 13.Growth JM G-Sec Fund .Investment Plan ICICI Prudential Income Plan .81364195 10.PF Option ICICI Prudential Gilt Fund .21111375 13.454 13.Regular Plan .71349616 13.98 4.Institutional Reliance Liquid Fund .Treasury Plan .Investment Plan .Treasury Plan .654 12.486 5.33520004 .Investment Plan ICICI Prudential Income Plan .PF Option ICICI Prudential Gilt Fund .922 26.Institutional Reliance Liquid Fund .Dividend Escorts Gilt Fund Escorts Income Plan Escorts Liquid Plan Average returns 18.Institutional Plan Reliance Liquidity Fund Reliance Monthly Income Plan .178 13.758 13.55 9.Regular Plan .Investment Plan .854 11.Institutional Plan 82 RISK 18.
897129685 16.454 13.Growth JM G-Sec Fund .78338 -11.29174842 12.73731934 5.Reliance Liquidity Fund Reliance Monthly Income Plan .Regular Plan .29095851 9.Treasury Plan .78338 -11.78338 -11.486 .78338 -11.922 26.55 9.78338 -11.Investment Plan .78338 returns nifty 18.Dividend Escorts Gilt Fund 83 average returns of -11.78338 -11.754744199 comparative risk 20 15 risk 10 5 0 JM Nifty Plus Fund JM G-Sec Fund Reliance Liquidity ICICI Prudential ICICI Prudential Escorts Income risk Companies COMPARATIVE STUDY ON FUND RETURNS TO NIFTY RETURNS Comparative study on fund returns to nifty returns average companies ICICI Prudential Gilt Fund .Dividend Escorts Gilt Fund Escorts Income Plan Escorts Liquid Plan 11.18 13.Growth JM G-Sec Fund .24162679 13.758 13.0232174 13.78338 -11.Institutional Reliance Liquid Fund .Growth JM Nifty Plus Fund JM G-Sec Fund .09 10.Institutional Plan Reliance Liquidity Fund Reliance Monthly Income Plan .Regular Plan .PF Option ICICI Prudential Gilt Fund .178 13.Regular Plan .Growth JM Nifty Plus Fund JM G-Sec Fund .854 11.78338 -11.654 12.Regular Plan .Investment Plan ICICI Prudential Income Plan .717877228 3.78338 -11.
560052 12.Growth JM G-Sec Fund .Dividend Escorts Gilt Fund Escorts Income Plan Escorts Liquid Plan risk risk of nifty 18.78338 -11.560052 9.Regular Plan .Escorts Income Plan Escorts Liquid Plan 5.560052 16.560052 13.98 4.Treasury Plan .21111375 15.Regular Plan .717877228 15.29095851 15.Growth JM Nifty Plus Fund JM G-Sec Fund .560052 13.560052 13.0232174 15.Investment Plan ICICI Prudential Income Plan .Institutional Plan Reliance Liquidity Fund Reliance Monthly Income Plan .754744199 15.78338 comparative study on company returns to nifty returns 30 average returns 20 10 0 ICICI ICICI JM Nifty JM G-Sec Reliance -10 -20 Escorts average returns average returns of nifty companies COMPARATIVE STUDY ON FUND RISK TO NIFTY RISK comparative study on fund risk to nifty risk companies ICICI Prudential Gilt Fund .606 -11.73731934 15.560052 10.560052 11.71349616 15.560052 3.33520004 15.560052 13.Investment Plan .24162679 15.PF Option ICICI Prudential Gilt Fund .897129685 15.29174842 15.81364195 15.560052 5.560052 84 .Institutional Reliance Liquid Fund .
717 3.922 26.Regular Plan .241 13.comparative study on company risk to nifty risk 20 15 risk 10 5 0 Reliance Liquidity JM Nifty Plus Fund JM G-Sec Fund ICICI Prudential ICICI Prudential Escorts Income risk risk of nifty companie s COMPARATIVE STUDY ON FUND AVERAGE RETURNS TO FUND RISK average FUNDS ICICI Prudential Gilt Fund .654 12.713 13.Investment Plan ICICI Prudential Income Plan .55 9.Growth JM Nifty Plus Fund JM G-Sec Fund .606 risk 18.98 4.Regular Plan .290 9.Investment Plan .813 10.897 16.854 11.754 85 .023 13.486 5.291 12.178 13.454 13.335 11.Institutional Reliance Liquid Fund .211 13.Treasury Plan .737 5.Institutional Plan Reliance Liquidity Fund Reliance Monthly Income Plan .09 10.18 13.PF Option ICICI Prudential Gilt Fund .Dividend Escorts Gilt Fund Escorts Income Plan Escorts Liquid Plan returns 18.Growth JM G-Sec Fund .758 13.
average returns & risk 30 25 20 15 10 5 0 ICICI Prudential ICICI Prudential Reliance Liquidity JM Nifty Plus Fund JM G-Sec Fund Escorts Income companies comparative study on companies average returns to companies risk 86 risk average returns .
758 18.Investment Plan JM Nifty Plus Fund ICICI Prudential Gilt Fund .897129685 10.Regular Plan .Institutional Reliance Liquidity Fund Escorts Gilt Fund JM G-Sec Fund .178 12.Growth JM G-Sec Fund .24162679 13.Treasury Plan .454 13.654 9.71349616 11.0232174 18.486 13.PF Option ICICI Prudential Gilt Fund .922 11.Institutional Plan Escorts Income Plan Escorts Liquid Plan RETURNS 26.18 13.73731934 13.717877228 9.Investment Plan .854 13.606 RANK 1 2 3 4 5 6 7 8 9 10 11 12 RANKS ACCORDING TO RISK COMPANIES Escorts Liquid Plan Escorts Income Plan Reliance Monthly Income Plan .81364195 16.98 4.Investment Plan .29095851 12.55 10.Growth ICICI Prudential Income Plan .Investment Plan Escorts Gilt Fund JM G-Sec Fund .Regular Plan – Growth JM G-Sec Fund .754744199 5.Dividend Reliance Monthly Income Plan – Growth ICICI Prudential Income Plan – Institutional Reliance Liquidity Fund Reliance Liquid Fund .21111375 RANK 1 2 3 4 5 6 7 8 9 10 11 12 87 .Regular Plan .Institutional Plan ICICI Prudential Gilt Fund .09 5.Regular Plan – Dividend Reliance Liquid Fund .Treasury Plan .RANKS ACCORDING TO AVERAGE RETURNS AVERAGE COMPANIES JM Nifty Plus Fund ICICI Prudential Gilt Fund .33520004 13.29174842 13.PF Option RISK 3.
During the project the following facts have been identified.758 which nifty has average return of -11.78338 88 .CHAPTER – V FINDINGS The present project work has been undertaken to analyze the buying and selling strategies of MUTUAL FUNDS. The following funds have higher returns than returns of Nifty: • Jm nifty plus fund has average return of 26.
.02322 Reliance Monthly Income Plan – Growth has second highest return.606 and risk of that fund is 3.89713.754 and standard deviation of nifty is 15.754744 • • 89 .922 and risk of that fund is 9. Standard deviation of the fund is 9.758 and risk of that fund is 16.717 and standard deviation of nifty is 15. The return of that fund is 4.486 which nifty has average return of -11.Investment Plan . Standard deviation of the fund is 5.78338 • • The following funds have lesser risk than Nifty: • Escorts Liquid Plan has less risk when compared to nifty risk.PF Option has average return 18.Growth has third low risk when compared to nifty risk.560. Escorts Liquid Plan has third highest return. • • Good performers: • JM nifty plus fund has first highest return .454 which nifty has average return of -11. Standard deviation of the fund is 3.560 Reliance Monthly Income Plan . Escorts Income Plan has second low risk when compared to nifty risk.897 and standard deviation of nifty is 15.• ICICI Prudential Gilt Fund .78338 Escorts Gilt Fund and average return has average return of 13.The return of that fund is 26.78338 ICICI Prudential Gilt Fund .560. The return of that fund is 12.854 which nifty has average return of -11.Investment Plan has average return 13.
CHAPTER – VI 90 .
PF Option ICICI Prudential Gilt Fund . They can invest in the following funds: • • • Escorts Liquid Plan Escorts Income Plan Reliance Monthly Income Plan – Growth The investors who can take less risk but require more returns have to invest in these funds: • • • JM nifty plus fund Reliance Monthly Income Plan – Growth Escorts Liquid Plan 91 .Investment Plan Escorts Gilt Fund The investors who can not take risk and satisfy with less return.Investment Plan . On this basis of findings. the above findings have been identified. The investors who can take risk and want more returns can invest is the following funds: • • • • JM Nifty plus Fund ICICI Prudential Gilt Fund . the following suggestions can be made according to investor’s profiles.SUGGESTIONS After doing analysis and interpretations.
CHAPTER – VII CONCLUSION 92 .
The project studied a few mutual fund schemes. Their performance was compared with nifty index performance during the same period. It reaffirmed that Mutual Funds are appropriate vehicles of Investment for small investors whether actively managed or passively managed Mutual Funds reflects on better Market performance. The performance of mutual fund was better than that of nifty. Awareness in marketing of Mutual Funds (With reference to ICICI Mutual Funds) 93 .
COMPANY NAME : DESIGNATION ADDRESS TEL. NO. MOB. NO. E-MAIL : : : : :
1.Do you know about Mutual Funds?
2. If Yes, than from which source News Paper T.V. Magazines Friends and Relatives Financial Advisor Others (please specify)
3. The name, which comes to your mind when it comes to mutual funds
4. Do you have any investment in mutual funds 94
If yes, company & fund name.
I. II. III.
5. Please tell why you prefer mutual funds (please mention in the order of preference) I. Tax Benefit II. High return III. Liquidity IV. Transparency V. Flexibility
6.What is the most preferred period of investment in the mutual fund. I. Below 1 Year II. 1-3 Year III. 3-5 Year IV. Above 5 year
7. Do you have any future plan for investing in mutual funds?
8. Have you ever invested in UTI mutual funds?
9. If yes, in which fund
10. How do you rate UTI mutual fund against other mutual funds
11. What is your opinion regarding marketing, sales and after sales services of UTI mutual funds.
12. Give your suggestions regarding ICICIMutual funds as a Port Folio Manager
ICICI Mutual Funds. Signature
com 4. www. www. JM Nifty Plus Fund 8.com FACT SHEETS 1. 1.Investment Plan 3. JM G-Sec Fund . JM G-Sec Fund . Dalal street (December 2009) AUTHOR Punithavati Pandian V.amfi. ICICI Prudential Gilt Fund . Reliance Liquidity Fund 6.com 2. www. Escorts Gilt Fund 11.com 5. Escorts Income Plan 12.Investment Plan .Regular Plan . Investment Management 3.Regular Plan .Institutional Plan 5.valueresearchindia. Bhalla WEB SITES 1. 2. Reliance Liquid Fund .nse-india.Treasury Plan . www. Reliance Monthly Income Plan .Growth 9.BIBLIOGRAPHY BOOK NAME 1. Security analysis and portfolio management 2.moneycontrol.mutualfundsindia.Dividend 10.PF Option 2.Growth 7. www.Institutional 4. ICICI Prudential Gilt Fund .com 3. Escorts Liquid Plan 97 . ICICI Prudential Income Plan .K.
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