You are on page 1of 72

SUMMER INTERNSHIP PROJECT REPORT

ON
MUTUAL FUND SIMPLIFIED
CARRIED ON AT

SUBMITTED TO
ASIA PACIFIC INSTITUTE OF MANAGEMENT, NEW DELHI

IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE AWARD OF


POST GRADUATE DIPLOMA IN MANAGEMENT

UNDER THE GUIDANCE OF


(DR. DEVENDRA BHAHADUR)
(OMDS FACULTY)

SUBMITTED BY:
(AMIT KUMAR JHA)
(2K14G010)
PGDM BATCH 2014-2016

1 | Page

DECLARATION

I, AMIT KUMAR JHA, hereby declare that the project work entitled MUTUAL FUND
SIMPLIFIED submitted towards partial fulfillment of requirements for the award of Post
Graduate Diploma in Management is my original work and the dissertation has not formed
the basis for award of any degree, associate ship, fellowship or any similar title to the best of
my knowledge.

Place: NEW DELHI

(Signature of Student)

Date:

(AMIT KUMAR JHA)


Roll No: 2K13G010

2 | Page

Acknowledgement

It is my proud privilege to release the feelings of my gratitude to several persons who helped
me directly or indirectly to conduct this project work. I express my heart full in debt and owe
a deep sense of gratitude to my teacher and my faculty guide Prof. DEVENDRA
BAHADUR, Asia Pacific Institute of Management and Mr. ANUJ AGARWAL, Training
Manager, ICICI SECURITIES, 17,18,19, 2nd Floor, Kailash Enclave New Delhi, for their
sincere guidance and inspiration in completing this project.
I am extremely thankful to faculty members of the Asia Pacific Institute of Management for
their coordination and cooperation and thankful to Prof. DEVENDRA BAHADUR for his
kind guidance and encouragement.
I am also extremely thankful to all those persons who have positively helped me and ICICI
Securities customers who responded my questionnaire, around whom the whole project cycle
revolves.
I also thank all my friends who have more or less contributed to the preparation of this
project report. I will be always indebted to them.

Thanking you

3 | Page

CERTIFICATE

4 | Page

CERTIFICATE

This is to certify that Mr. Amit Kumar Jha , Roll number 2K14G010, a student of PGDM in
Asia Pacific Institute of Management, New Delhi, has carried out the Summer Internship
Project work presented in this report titled MUTUAL FUND SIMPLIFIED for the award
of Post Graduate Diploma in Management for the Academic Batch 2014-16, under my
guidance.

(Signature)
Devendra Bahadur
Date:

5 | Page

PREFACE

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


there is provision for doing summer internship after III semester. The essential purpose of this
project is to given an exposure and detailed outlook to the student of the practical concepts,
which they already studied research. For this purpose, I was assigned the project for the
MUTUAL FUND SIMPLIFIED in ICICI SECURITIES by my project mentor. It is a
matter of great privilege to get training from ICICI SECURITIES, one of the largest
organizations of its kind.
The project lasted for a period of eight weeks; it was informative, interesting, inspiring and
challenging task.
I hope this report will provide an experiment outlook to the dynamic functioning in the
MUTUAL FUND department in securities sector.

6 | Page

CONTENT
S.No

Topics

1.

Declaration

2.

Acknowledgement

Certificate

Preface

List of tables

List of figures

Page no.

CHAPTER- I
7

Company profile

10

Introduction

10

Overview

12

10.

Brief about ICICI group

12

11

History of ICICI group

13-19

12

ICICI group companies

20

13

Board of directors

20

14

Vision and mission of ICICI group

21

15

Privacy policy

21

16

Introduction to ICICI direct

22

17

Awards and accolades

23

18

Major Competitors

24

19

ICICI direct trading platforms

24-25

20

Products and service offered by ICICI direct

25-34

21

35

22

How is MF set up?


Advantages and Disadvantages of MF

35-37

23

Different types of MF

38-40

24

Literature Review

CHAPTER-II

7 | Page

42-47

CHAPTER-III
2

Research Methodology

49-53

CHAPTER-IV
Data Analysis and Interpretation

55-64

5
2
6
CHAPTER-V
2

Findings

65

7
2

Suggestions and Recommendations

66

8
2

Conclusion

67

9
2

Bibliography

68-69

8
2

Annexure (questionnaire)

70-72

8 | Page

CHAPTER -I

9 | Page

COMPANY PROFILE
Company Name
Founded In
Parent Company
Headquarter
Chairperson
Managing Director
Website

ICICI Securities
1995
ICICI Limited
Mumbai
Mrs. Chanda D. Kochhar
Mr. Anup Bagchi
www.icicisecurities.com

INTRODUCTION
ICICI Securities Limited provides various investment banking products and services to
corporates, financial institutions, and retail investors in India and internationally. It provides
corporate finance services to corporations, financial institutions, financial sponsors, and
government, which include equity capital market products, such as initial public offerings
(IPO), further public offerings, rights offerings, convertible offerings, qualified institutional
placements, non-convertible debentures, buyback, delisting, and open offers and international
offerings for unlisted and listed entities. The company also offers mergers and acquisitions
advisory services; and private equity advisory.

OVERVIEW
10 | P a g e

ICICI Securities Ltd is an integrated securities firm offering a wide range of services
including investment banking, institutional broking, retail broking, private wealth
management, and financial product distribution. ICICI Securities sees its role as 'Creating
Informed Access to the Wealth of the Nation' for its diversified set of client that includes
corporates, financial institutions, high net-worth individuals, and retail investors.
Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in India and
global offices in Singapore and New York. ICICI Securities Inc., the step-down wholly
owned US subsidiary of the company is a member of the Financial Industry Regulatory
Authority (FINRA) / Securities Investors Protection Corporation (SIPC). ICICI Securities
Inc. activities include Dealing in Securities and Corporate Advisory Services in the United
States. ICICI Securities Inc. is also registered with the Monetary Authority of Singapore
(MAS) and operates a branch office in Singapore.

Brief about ICICI Group

11 | P a g e

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at
the initiative of the World Bank, the Government of India and representatives of Indian
industry, with the objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami
Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source
of foreign currency loans to Indian industry. Besides funding from the World Bank and other
multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from
international markets.

History of ICICI group


1986:

ICICI became the first Indian institution to receive ADB Loans.


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

India's first professional credit rating agency.


ICICI promotes Shipping Credit and Investment Company of India Limited.

1987:

The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the
first public issue by any Indian entity in the Swiss Capital Market.

1988:

ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in
India.

1993:

Promoted TDICI - India's first venture capital company.

1994:

12 | P a g e

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

1996:

ICICI Asset Management Company set up.


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

1997:

ICICI merged with ICICI Ltd.


Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.
ICICI Ltd was the first intermediary to move away from single prime rate to three-tier
prime rates structure and introduced yield-curve based pricing.

1998:

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

ICICI Ltd.
ICICI Ltd announced the takeover of ITC Classic Finance.

1999:

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

Group.
ICICI announced takeover of Anagram Finance.

2000:

ICICI launched retail finance - car loans, house loans and loans for consumer durables
ICICI becomes the first Indian Company to list on the NYSE through an issue of
American Depositary Shares.

2001:

ICICI Bank became the first commercial bank from India to list its stock on NYSE.
The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI
Bank.

13 | P a g e

2002:

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

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

kind in India.
ICICI Bank launched Private Banking.
1100-seat Call Centre set up in Hyderabad
ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of

housing projects in the county, launched in Pune,


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

2003:

The first Integrated Currency Management Centre launched in Pune.


ICICI Bank announced the setting up of its first ever-offshore branch in Singapore.
The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai,

launched.
ICICI Bank's UK subsidiary launched.
India's first ever "Visa Mini Credit Card, a 43% smaller credit card in dimensions

launched.
ICICI Bank subsidiary set up in Canada.
Temasek Holdings acquired 5.2% stake in ICICI Bank.
ICICI Bank became the market leader in retail credit in India.

2004:

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

affordability to a customer, introduced


Mobile banking service in India launched in association with Reliance Infocomm.
India's first multi-branded credit card with HPCL and Airtel launched.
Kisaan Loan Card and innovative, low-cost ATMs in rural India launched.

2005:

ICICI Bank and CNBC TV 18 announced India's first ever awards recognizing the
achievements of SMEs, a pioneering initiative to encourage the contribution of Small,

and Medium Enterprises to the growth of Indian economy.


ICICI Bank opened its 500th branch in India.

14 | P a g e

ICICI Bank introduced partnership model wherein ICICI Bank would forge an
alliance with existing micro finance institutions (MFIs). The MFI would undertake the
promotional role of identifying, training and promoting the micro-finance clients and

ICICI Bank would finance the clients directly on the recommendation of the MFI.
ICICI Bank introduced the concept of floating rate for home loans in India.
First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.
"Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit

Cards were waived off.


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

mobile phone.
Private Banking Masters 2005, a nationwide Golf tournament for high net worth
clients of the private banking division launched. This event is the largest domestic

invitation amateur golf event conducted in India.


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

2006:

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

investors for its follow-up offer.


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

international markets.
ICICI Bank subsidiary set up in Russia.

2007:

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

for nonresident Indians.


Representative offices opened in Thailand, Indonesia, and Malaysia.
ICICI Bank became the largest retail player in the market to introduce a biometric
enabled smart card that allows banking transactions to be conducted on the field. A
low-cost solution, this became an effective delivery option for ICICI Bank's micro

finance institution partners.


Financial counseling centre Disha launched. Disha provides free credit counseling,
financial planning, and debt management services.

15 | P a g e

Sangli Bank amalgamated with ICICI Bank.


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

international markets through a follow-on public offer.


ICICI Bank's GBP 350 million international bond offering marked the inaugural deal
in the sterling market from an Indian issuer and also the largest deal in the sterling

market from Asia.


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

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

Signature Credit Card.


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

enterprises start, finance, and grow their business.


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

agreement in Singapore.
ICICI Bank became the first private bank in India to offer both floating and fixed rate
on car loans, commercial vehicles loans, construction equipment loans, and

professional equipment loans.


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

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


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

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

2008:

ICICI Bank enters US, launches its first branch in New York.
ICICI Bank enters Germany, opens its first branch in Frankfurt.
ICICI Bank launched iMobile, a breakthrough innovation in banking where
practically all internet-banking transactions can now be simply done on mobile

phones.
ICICI Bank concluded India's largest ever securitization transaction of a pool of retail
loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a
multi-tranche issue backed by four different asset categories. It is also the largest deal

16 | P a g e

in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan &
Australia) since the beginning of 2007
2009:

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

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

Platinum Credit Card"


ICICI Bank ties up with BSNL Cell One for bill payments

2010:

ICICI Bank launches website in Hindi.


ICICI Bank opens first retail branch in Singapore.
RBI approves the amalgamation of Bank of Rajasthan Ltd with ICICI Bank Ltd.
First private sector Bank to inaugurate its 2000 Branch.
ICICI Bank gets Qualified Full Banking privileges in Singapore

2011:

ICICI Bank offers cash withdrawal at POS terminals


ICICI Bank & Vodafone Essar ink pact for financial inclusion
ICICI Bank & Aircel sign MoU for financial inclusion
ICICI Bank & Indian Army sign MoU for banking services
ICICI Bank and Intuit launch "Money Manager"
ICICI Bank launches EMV Standard Cards
ICICI Bank Limited Opens Second Retail Branch in Singapore
ICICI Bank launches the first dual Platinum Credit Card
ICICI Bank closes the first rupee Credit Default Swap transaction

2012:

ICICI Bank opens its second branch in Hong Kong


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

17 | P a g e

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

all bank branches.


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

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


ICICI Bank launches first Electronic Toll Collection project on NH-1. A first of its
kind project initiated by the Ministry of Road, Transport & Highways, National

Highway Authority of India (NHAI) and ICICI Bank.


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

first debt fund to get government's go ahead.


ICICI Bank launches its official Facebook Page. First bank in India to offer one-of-its
kind "Your Bank Account" App, which allows access to bank account information on
Facebook.

ICICI Group Companies

ICICI Bank
ICICI Prudential Life Insurance Company
ICICI Securities Limited
ICICI Securities Primary Dealership Limited
ICICI Lombard General Insurance Company
ICICI Prudential Asset Management Company
ICICI Venture
ICICI Home Finance Company

18 | P a g e

Board of Directors

ICICI Securities Limited


Ms. Chanda D. Kochhar, Chairperson
Mr. Uday Chitale, Independent
Director
Mr. Vinod Kumar Dhall, Independent
Director
Ms. Zarin Daruwala
Ms. Shilpa Kumar
Mr. Anup Bagchi, Managing Director
& CEO
Mr. Ajay Saraf, Executive Director

ICICI Securities Holding Inc.


Mr. Sanker Parameswaran,
Director
Mr. Sriram Iyer, Director

ICICI Securities, Inc.


Mr. Anup Bagchi,
Chairman
Mr. Ajay Saraf

Mr. Warren Law

Mr. Subir Saha


Mr. Jaideep Goswami
Mr. Bishen Pertab
Mr. Robert Ng

Vision & Mission of ICICI group


Vision: To be the leading service provider of financial services in India.
Mission: We will leverage our people, technology, speed and financial capital to:
Be the banker of first choice for our customers by delivering high quality, excellent
products and services.
Expand the frontiers of our business globally.
Play a proactive role in the full realisation of Indias potential.
Maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
Maintain high standards of governance and ethics.
Contribute positively to the various countries and markets in which we operate.
Create value for our stakeholders.

19 | P a g e

Privacy Policy
ICICI is strongly committed to protecting the privacy of its customers.
DNC (Don't Call Registry)
ICICI do respect your privacy, and appreciate that some of you may not want to be contacted
over the phone for our telemarketing activities. If this is the case with you, you may use the
Do Not Call form given below and register your phone number(s) that you want excluded
from our telemarketing list. The details that you enter in the form will remain confidential
Code of Conduct and Business Ethics
ICICI Group expects all its employees, officers and directors to act in accordance with high
professional and ethical standards.
Introduction to ICICI Direct
ICICIDirect is an online trading and investment platform on ICICI Securities, the largest
stock broker firm in India providing a wide range of investment options to the retail and
institutional customers. ICICI Securities is part of ICICI Group, India's top financial service
provider offering banking and other financial services.
ICICI Securities (I-Sec) is the top equity house in India with over 20 lakh customers.
ICICIDirect.com is the flagship website of I-Sec. This website was the first online trading
platform lunched in India to provide browser based equity, commodity and currency trading;
all under one login.
ICICIdirect.com is the most visited investment portal in India and by NRI's living across
countries. It is one website, which provides options to invest in over 20 financial products

20 | P a g e

including Equity, Derivatives, Currency Futures, IPO, Mutual Funds, ETF, Fixed Deposits,
Loans, Tax Services, New Pension Systems and Insurance.
ICICI direct also provide current stock market information which includes stock prices, news,
market research reports, stocks tips, events, IPO News and company results. Its 'Centre for
Financial Learning' initiative offers number of online and classroom programs for investors.
The 3-in-1 account, which includes ICICI Bank Account, ICICI Direct Trading Account and
ICICI Demat Account, is the best offering for retail investors in India as it provides easiest
way to invest in stock market and other financial instruments. The customers can visit any of
the over 1500 ICICI Bank branches to get help on financial products which are sold through
ICICI direct.

Awards and accolades

Franchisor of the year award 2009


Retail concept of the year awards 2009
ICICIDirect wins the prestigious Outlook Money - India's Best e-Brokerage House for

2009.
ICICIDirect has also won the CNBC AWAAZ Consumer Award for the Most

Preferred Brand of Financial Advisory Services.


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

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


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

2008.
ICICIDirect, the neighborhood financial superstore won the prestigious Franchise

India `Service Retailer of the Year 2008 award.


Best Broker - Web 18 Genius of the Web Awards 2007
CMO Asia Awards for Excellence in Branding and Marketing

21 | P a g e

Brand Leadership Award (overall)


'Campaign of the Year' for the Trade Racer Campaign
Brand Excellence in Banking and Financial Services for the store format
Award for Brand Excellence in the Internet Business
Frost and Sullivan Award for Customer Service Leadership

Major Competitors

HDFC Securities
Kotak Securities
SBI Capital
Sharekhan Broker
IDBI Capital
HSBC InvestDirect
Angel Broking
Indiabulls Services
Reliance Securities
Bajaj Capital

ICICI Direct's Trading Platforms


ICICI Direct offers 2 trading platforms to its customers:
Share Trading Account (Website Based Trading)
Website based online Share Trading Account by ICICIDirect is primarily for buying and
selling of stocks at BSE and NSE.
The ICICIDirect website allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot
Trading, Buy Today Sell Tomorrow, IPO Investment, Mutual Fund Investment etc.
ICICIDirect.com website is the primary Investment vehicle of ICICI Limited.

22 | P a g e

Trade Racer (Trading Terminal)


Trade Racer is a power packed Trading platform, which provides an investor with Live
streaming quotes & Research Calls, integrated fund transfer system along with multiple
watch list facility. Investor can also do technical analysis with the help advance charting
tools. Single Order entry page for Equities and Derivatives, Technical Analysis, Integrated
Fund Transfer System, Customized Interface, Intra-day and EOD Charts and Shortcut keys
for faster access to markets are some of the key features of Trade Racer Terminal
Products & Services
Equity
ICICIdirect.com offers various options while trading in shares.
Cash Trading: This is a delivery based trading system, which is generally done with the
intention of taking delivery of shares or monies.
Margin Product : Investor can also do an intra-settlement trading up to 3 to 4 times available
funds, wherein Investor take long buy/ short sell positions in stocks with the intention of
squaring off the position within the same day settlement cycle.
MarginPLUS Product : Through Margin PLUS Investor can do an intra-settlement trading
up to 25 times your available funds, wherein Investor take long buy/ short sell positions in
stocks with the intention of squaring off the position within the same day settlement cycle.
Margin PLUS will give a much higher leverage in Investor account against his limits.

23 | P a g e

CallNTrade: CallNTrade allows Investor to call on a local number in your city & trade on
the telephone through our Customer Service Executives. This facility is currently available in
over 11 major states across India.
Trading on NSE/BSE: Through ICICIdirect.com, can trade on NSE as well as BSE.
Market Order: Investor could trade by placing market orders during market hours that allows
to trade at the best obtainable price in the market at the time of execution of the order.
Limit Order: Allows to place a buy/sell order at a price defined by Investor. The execution
can happen at a price more favorable than the price, which is defined by Investor, limit orders
can be placed by Investor during holidays & non-market hours too.

Derivatives
Futures: Through ICICIdirect.com, investor can now trade in index and stock futures on the
NSE. In futures trading, investor takes buy/sell positions in index or stock contracts having a
longer contract period of up to 3 months.
Trading in FUTURES is simple! If, during the course of the contract life, the price moves in
investor favor (i.e. rises in case investor has a buy position or falls in case investor has a sell
position), make a profit.
Presently only selected stocks, which meet the criteria on liquidity and volume, have been
enabled for futures trading.
Calculate Index and Know your Margin are tools to help you in calculating investor margin
requirements and the index & stock price movements. The Centre for Financial Learning is a
comprehensive guide on futures and options trading.
24 | P a g e

OPTIONS
An option is a contract, which gives the buyer the right to buy or sell shares at a specific
price, on or before a specific date. For this, the buyer has to pay to the seller some money,
which is called premium. There is no obligation on the buyer to complete the transaction if
the price is not favorable to him.
To take the buy/sell position on index/stock options, investor has to place certain percentage
of order value as margin. With options trading, investor can leverage on his trading limit by
taking buy/sell positions much more than what he could has taken in cash segment.
The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying
Asset at the specified strike price by paying a premium whereas the Seller of the Call has the
obligation of selling the Underlying Asset at the specified Strike price.
The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset
at the specified strike price by paying a premium whereas the Seller of the Put has the
obligation of buying the Underlying Asset at the specified Strike price.
Currency Derivatives
ICICI Direct offers a simple and convenient way to trade and hedge currency risk in four pair
of Currencies- Dollar, Euro, Pound and Japanese Yen against Indian Rupee.
By offering the choice of trading in different asset class of Currencies ICICI Direct offers the
opportunity to diversify investor portfolio.

25 | P a g e

The benefits of choosing ICICI Direct for your Currency Trading are:
Convenience - Provides a well-diversified set platform for online trading with competitive
brokerage under a single sign-on and completely paper-less investing experience
Expertise - Investor can access Daily Research Reports as well as Fundamental & Technical
Reports and Advisory.
Flexibility Investor can select the Currency Pair USD/INR, EUR/INR, GBP/INR and
JPY/INR in which he wish to trade
Few Advantages of this market are
Trading hours of 09:00 am to 05:00 pm provide more trading opportunities
Trade in prominent currencies like US Dollar, EURO, Pound, and Yen against Indian Rupee
Real time and Transparent Currency Rates in comparison to OTC Rates.
No Counterparty Default risk due to settlement guarantee by regulated clearing house.
Low Taxation (No STT and CTT)
Daily Cash Settlement in INR via MTM (Mark to Market)
The benefits of choosing ICICI Direct for investment in mutual funds are:
Convenience - Provides a well-diversified set of investment products under a single sign-on
and completely paper-less investing experience.

26 | P a g e

Expertise - Investor can access some of the researched funds selected based on rigorous
criterion.
Flexibility - Investor may select the fund that best suits his need
Exchange Traded Funds
Exchange Traded Funds or ETFs are securities that are traded, like individual stocks, on an
exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout
the trading day like any stock.
Most ETFs charge lower annual expenses than many mutual funds. As with stocks, one must
pay a brokerage to buy and sell ETF units.
ICICI direct advantage:
The benefits of choosing ICICI direct for ETF investment are:

Invest in a paperless manner


No need to cut cheque
Get instant confirmation & Calculate capital gains at click of a button
Check portfolio for realized and unrealized profit/loss

Life Insurance
Wealth insurance ensures that investor receives a lump sum amount of money at the maturity of
the Policy. In the unfortunate event of death during the term of the policy, investor family
receives lump sum amount, called the Sum Assured. Thus it combines the benefits of protection
and saving in a single instrument. In ULIP policies, the investment risk in the investment
portfolio is borne by the policy holder.

27 | P a g e

Conditions Apply: Guaranteed benefits are available only if all premiums are paid as per the
premium payment term and the policy is in-force till the completion of entire policy term.

PRODUCT

SUITABILITY

FEATURES

A unit-linked, non-participating, savings


and protection oriented insurance plan.
Pay premiums for a limited period or for
For anyone who is looking for the entire policy term.
Equity or Debt linked savings plan.
Invest in Funds of choice or opt for Life
Cycle based Portfolio strategy.
Min/Max age at entry 0/69 years A unit-linked, non-participating, savings
depending On PPT.
and protection oriented insurance plan
Min/Max age at entry 0/69 years
depending on PPT

For anyone who is looking to save Flexibility of Premium Payment term


Rs. 2 lac or more in a Equity or Debt
linked savings plan.
Choose between different Equity or debt
funds
Min/Max age at entry 0/70 years A unit-linked, non-participating, savings
depending on PPT.
and protection oriented insurance plan
Choose between different Equity or debt
For anyone who is looking to save funds
Rs. 5 lac or more in a Equity or Debt Enjoy Guaranteed loyalty additions
linked savings plan.
which enhance your returns
Wealth Boosters to enhance your
savings
Min/Max age at entry 1Pay - 8/70; 5 Protect savings from market downturns
pay - 8/60 years.
through an Assured Benefit
Pay premium just once or for a limited
For anyone who is looking to invest period of 5 years
into equity and yet wants his/her Get rewarded with Loyalty Additions
capital to be protected.
and Wealth Booster
Min/Max age at entry 5Pay -3; 7pay A savings and protection oriented plan.
- 1; 10PAY - 0 / 65 years.
Pay premiums for just 5, 7 or 10 years.
For anyone who is looking for Get Cash Benefits Guaranteed for next
Guaranteed regular income
10 years.
Guaranteed Maturity
Benefit
plus
bonuses at maturity for long term goals.
28 | P a g e

Life cover to protect family's future


Min/Max age at entry 0/60 years.

A participating savings and protection


oriented plan
For anyone who is looking for Guaranteed
Maturity
Benefit
+
guarantee in a savings cum Guaranteed Additions at maturity
Insurance plan
Pay premiums for a limited period or for
the entire policy term.

General Insurance
General Insurance products cover Health, Home, Motor and Travel, and help protect financial
health unforeseen events strike close to home. ICICI Lombard is the leading private general
insurance company and has one of the best products.
Partnership with ICICI Lombard enables to bring the entire range of insurance offerings
personal and professional needs, with minimal paperwork and at the comfort of home or
office. Select products can be entirely bought online on ICICIdirect.com with instant policy
issuance.
Fixed Deposits & Bonds
Corporate Fixed Deposits: - ICICI Direct offers a range of Corporate Fixed Deposits
varying in tenures, interest rates & institutions to suit investment needs. The deposit schemes
have been specially chosen from high-safety options to ensure that customers enjoy the twin
benefits of returns and protection.
Why opt for Corporate Fixed Deposits?
If risk appetite is low, fixed deposits are perfect. Since most of the instruments are
rated, corporate fixed deposits have a very high safety level.
Attractive returns at interest rates higher than banks Fixed Deposits.
29 | P a g e

Higher Interest rates for senior citizens.


High liquidity; most of these issuers offer 75% of the investment amount as loan @
2% over the interest rate on the deposit, as well as a pre-mature withdrawal Option.
Potential to earn compounding interest on money by reinvesting the principal amount
along with the interest earned.
Flexible tenure - there are various tenures ranging from 1 to 7 years.
Bonds:Bond refers to a security issued by a company, financial institution or government, which
offers regular or fixed payment of interest in return on the amount, borrowed money for a
certain period.
Thus by purchasing a bond, investor loans money for a fixed period at a predetermined
interest rate. While the interest is paid to the bond holder at regular intervals, the principal
amount is repaid later, known as the maturity date. While both bonds and stocks are
securities, the principle difference between the two is that bond holders are lenders, while
stockholders are the owners of the organization. Another difference is that bonds usually have
a defined term, or maturity, after which the bond is redeemed, whereas stocks may be
outstanding indefinitely.
Customer also has the option of recurring interest along with Principal i.e. Cumulative
Interest. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender
(creditor), and the coupon is the interest. Bonds provide the borrower with external funds to
finance long-term investments, or, in the case of government bonds, to finance current
expenditure. Bonds must be repaid at fixed intervals over a period.
ELocker
ICICIdirect.com's eLocker helps with the convenience and flexibility to store and retrieve
important documents when need them. Can store scanned copies of Passport, PAN,
30 | P a g e

Agreements or even medical reports securely under your ICICI direct account. ELocker helps
eliminate to carry copies of important documents either as a physical photo copy or in storage
devices like Compact Disks, USB token etc. With eLocker, can store documents in one
central secure location and know that documents are just a few clicks away.

Key Benefits:
Secure and Accessible - eLocker ensures that documents are secure and accessible
only via a secure login.
Anywhere, anytime access - eLocker is available from anywhere, via an Internet
connection under ICICI direct account login.
Durability and Longevity - Storage of documents in CD's or other portable media is
prone to handling them with care, eLocker lets store documents online, which ensures
durability and longevity.
No storage or retrieval hassles - Since documents are stored in a digital format under
ICICI direct account, the account is available to you wherever you go.

Trade Racer
Trade Racer is a trading platform, which provides live streaming quotes & Research Calls,
integrated fund transfer system along with multiple watch list facility. Power-packed with
new features, Trade Racer gives the power to identify market opportunities while enjoying
the attractive new look and feel of the trading terminal.

31 | P a g e

National Pension System (NPS)


Pension Fund Regulatory and Development Authority (PFRDA) was established by the
Government of India on August 23, 2003 to promote old age income security by establishing,
developing and regulating pension funds, to protect the interests of subscribers to schemes of
pension funds and for matters connected therewith or incidental thereto.
The NPS is a new voluntary contributory pension scheme introduced by the Central
Government. Under the National Pension System, individuals can open a personal retirement
account and can accumulate a pension corpus during their work life to meet financial needs
post retirement. These contributions would grow and accumulate over the years, depending
on the returns earned on the investment made. When the person retires, he will be able to use
these savings to take care of the needs and expenses of his family during old age. The
subscribers may use the accumulated pension wealth under the scheme to purchase a life
annuity from a life insurance company. Alternatively, depending on the age of the subscriber,
a part of the wealth may be withdrawn as lump-sum.
ICICI Securities Limited (I-Sec) has obtained the Point of Presence (POP) Registration
Certificate from PFRDA to offer NPS accounts. Any individual customer of icicidirect.com

32 | P a g e

desiring to open an NPS account t can do so by clicking on "Subscribe NPS" and fulfilling
the prerequisite process.
SEBI regulations require that at least two thirds of the directors of trustee company or board
of trustees must be independent i.e. they should not be associated with the sponsors. In
addition, 50 per cent of the directors of AMC must be independent. All Mutual Funds are
required to be registered with SEBI before they launch any scheme.
How is a Mutual Fund set up?
A Mutual Fund is set up in the form of a trust, which has a sponsor, trustees, and asset
management company (AMC) and custodian. The trust is established by a sponsor or more
than one sponsor who is like a promoter of a company. The trustees of the Mutual Fund hold
its property for the benefit of the unit holders. Asset Management Company (AMC) approved
by SEBI manages the funds by making investments in various types of securities. Custodian,
who is registered with SEBI, holds the securities of various schemes of the fund in its
custody. The trustees are vested with the general power of superintendence and direction over
AMC. They monitor the performance and compliance of SEBI regulations by the Mutual
Fund.
Advantages of mutual funds
Mutual funds have designed to provide maximum benefits to investors, and fund manager
have research team to achieve schemes objective. Assets Management Company has different
type of sector funds, which need to proper planning for strategic investment and to achieve
the market return.
Portfolio Diversification

33 | P a g e

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


hold a diversified investment portfolio (whether the amount of investment is big or small).
Professional Management
Fund manager undergoes through various research works and has better investment
management skills, which ensure higher returns to the investor than what he can manage on
his own.
Less Risk
Investors acquire a diversified portfolio of securities even with a small investment in a
Mutual Fund. The risk in a diversified portfolio is lesser than investing in merely 2 or 3
securities.
Low Transaction Costs
Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser
transaction costs. These benefits are passed on to the investors.
Liquidity
An investor may not be able to sell some of the shares held by him very easily and quickly,
whereas units of a mutual fund are far more liquid.
Choice of Schemes
Mutual funds provide investors with various schemes with different investment objectives.
Investors have the option of investing in a scheme having a correlation between its
investment objectives and their own financial goals. These schemes further have different
plans/options

34 | P a g e

Transparency
Funds provide investors with updated information pertaining to the markets and the schemes.
All material facts are disclosed to investors as required by the regulator.
Flexibility
Investors also benefit from the convenience and flexibility offered by Mutual Funds.
Investors can switch their holdings from a debt scheme to an equity scheme and vice-versa.
Option of systematic (at regular intervals) investment and withdrawal is also offered to the
investors in most open-end schemes.
Safety
Mutual Fund industry is part of a well-regulated investment environment where the interests
of the investors are protected by the regulator. All funds are registered with SEBI and
complete transparency is forced.
Disadvantages of mutual funs
The mutual fund not just advantage of investor but also has disadvantages for the funds. The
fund manager not always made profits but might create loss for not properly managed. The
fund have own strategy for investment to hold, to sell, to purchase unit at particular time.
Costs Control Not in the Hands of an Investor
Investor has to pay investment management fees and fund distribution costs as a percentage
of the value of his investments (as long as he holds the units), irrespective of the performance
of the fund
No Customized Portfolios

35 | P a g e

The portfolio of securities in which a fund invests is a decision taken by the fund manager.
Investors have no right to interfere in the decision making process of a fund manager, which
some investors find as a constraint in achieving their financial objectives.
Difficulty in Selecting a Suitable Fund Scheme
Many investors find it difficult to select one option from the plethora of funds/schemes/plans
available. For this, they may have to take advice from financial planners in order to invest in
the right fund to achieve their objectives.
Different types of Mutual funds
(A) On the basis of Objective:
Equity Funds/ Growth Funds: Funds that invest in equity shares are called equity
funds. They carry the principal objective of capital appreciation of the investment
over the medium to long-term. The returns in such funds are volatile since they are
directly linked to the stock markets. They are best suited for investors who are seeking
capital appreciation. There are different types of equity funds such as Diversified
funds, Sector specific funds and Index based funds.
Diversified funds: These funds invest in companies spread across sectors. These
funds are generally meant for risk-taking investors who are not bullish about any
particular sector.
Sector funds: These funds invest primarily in equity shares of companies in a
particular business sector or industry. These funds are targeted at investors who are
extremely bullish about a particular sector.

36 | P a g e

Index funds: These funds invest in the same pattern as popular market indices like
S&P 500 and BSE Index. The value of the index fund varies in proportion to the
benchmark index.
Tax Saving Funds: These funds offer tax benefits to investors under the Income Tax
Act. Opportunities provided under this scheme are in the form of tax rebates U/s 88 as
well saving in Capital Gains U/s 54EA and 54EB. They are best suited for investors
seeking tax concessions.
Debt / Income Funds: These Funds invest predominantly in high-rated fixed-incomebearing instruments like bonds, debentures, government securities, commercial paper
and other money market instruments. They are best suited for the medium to longterm investors who are averse to risk and seek capital preservation. They provide
regular income and safety to the investor.
Liquid Funds / Money Market Funds: These funds invest in highly liquid money
market instruments. The period of investment could be as short as a day. They provide
easy liquidity. They have emerged as an alternative for savings and short-term fixed
deposit accounts with comparatively higher returns. These funds are ideal for
Corporates, institutional investors and business houses who invest their funds for very
short periods.
Gilt Funds: These funds invest in Central and State Government securities. Since
they are Government backed bonds they give a secured return and also ensure safety
of the principal amount. They are best suited for the medium to long-term investors
who are averse to risk.

37 | P a g e

Balanced Funds: These funds invest both in equity shares and fixed-income-bearing
instruments (debt) in some proportion. They provide a steady return and reduce the
volatility of the fund while providing some upside for capital appreciation. They are
ideal for medium- to long-term investors willing to take moderate risks.
Hedge Funds: These funds adopt highly speculative trading strategies. They hedge
risks in order to increase the value of the portfolio.

(B) On the basis of Flexibility


Open-ended Funds: These funds do not have a fixed date of redemption. Generally
they are open for subscription and redemption throughout the year. Their prices are
linked to the daily net asset value (NAV). From the investors' perspective, they are
much more liquid than closed-ended funds. Investors are permitted to join or
withdraw from the fund after an initial lock-in period.
Close-ended Funds: These funds are open initially for entry during the Initial Public
Offering (IPO) and thereafter closed for entry as well as exit. These funds have a
fixed date of redemption. One of the characteristics of the close-ended schemes is that
they are generally traded at a discount to NAV; but the discount narrows as maturity
nears. These funds are open for subscription only once and can be redeemed only on
the fixed date of redemption. The units of these funds are listed (with certain
exceptions), are tradable and the subscribers to the fund would be able to exit from the
fund at any time through the secondary market.
38 | P a g e

Interval funds: These funds combine the features of both open-ended and closeended funds wherein the fund is close ended for the first couple of years and openended thereafter. Some funds allow fresh subscriptions and redemption at fixed times
every year (say every six months) in order to reduce the administrative aspects of
daily entry or exit, yet providing reasonable liquidity
(c) On the basis of geographic location
Domestic funds: These funds mobilize the savings of nationals within the country.

Offshore Funds: These funds facilitate cross border fund flow. They invest in
securities of foreign companies. They attract foreign capital for investment.

CHAPTER -II
39 | P a g e

LITERATURE REVIEW

Sahil Jain measured the performance of the equity based mutual funds in India. The assets
under management in this industry is more than Rs 6.8 thousand billion. The Indian market is
flooded with more than a thousand mutual fund schemes, promising better returns than
others. A total of 45 schemes offered by 2 private sector companies and 2 public sector
companies, have been studied over the period April 1997 to April 2012 (15 years). The
analysis has been made using the risk-return relationship and Capital Asset Pricing Model
(CAPM). The overall analysis finds that HDFC and ICICI have been the best performers,
UTI an average performer and LIC the worst performer which gave below- expected returns
on the risk-return relationship.
According to CRISIL Mutual Fund Year book Apr 2013, In 2012 Equities emerged as the star
performer with the benchmark CNX Nifty gaining 28%. The debt market too performed well
with long-term debt funds gaining prominence due to some easing of monetary stance by the
Reserve Bank of India (RBI) and expectations of further easing by the central bank to pump
40 | P a g e

prime the economy. The mutual fund industrys average assets under management (AUM)
grew by 15% in 2012 to Rs 7.87 trillion in December 2012; debt funds AUM rose by over
26% to Rs 5.34 trillion and equity funds AUM by 19% to Rs 1.92 trillion. The focus on retail
investors and improving the penetration of mutual funds continued through the year with
Securities and Exchange Board of India (SEBI) announcing various guidelines to promote
investor education, reduce operational bottlenecks and costs. The regulator directed fund
houses to allocate 2 basis points of their AUM towards investor education initiatives. Further,
SEBI doled out incentives to fund houses that distribute their products beyond the top 15
cities. Single plan structures and introduction of direct plans were other investor friendly
measures introduced by the regulator.
Vijayalakshmi Sundar measured that Mutual funds in India are becoming an ideal investment
choice compared to safe investments such as Fixed Deposits and postal which gives
comparatively low returns. Since the year 2003 from which the present stage of bull run in
the Indian capital markets began, the mutual fund industry While the growth in terms of the
AUM was subdued over the period from 2009-2013, it has gained unprecedented momentum
over the four year period until March 2013. The growth of the capital markets in terms of
BSE -30 shares Sensex has been still higher, and the banking sector has been on a roll over
the last couple of years, throwing up huge opportunities for wealth creation on the way. As
the Indian economy does well with over recent times, banks tend to be one of the biggest
beneficiaries. In fact, post the global financial crisis of 2008 and 2009, the banking index
delivered a return of 82% during May 2009 until October 2010, compared to a return of 40%
delivered by the broader market. Investment in banking sector funds is one of the best avenue
which guarantees stable return with medium risk when compare to other sectors.

41 | P a g e

Jafri Arshad Hasan measured that Indian mutual fund industry is going through a very crucial
phase because of the changing regulations and confusing atmosphere. In this study he discuss
the impact of regulatory changes by SEBI on mutual fund industry and its after affects. It
will also throw some light on the international factors that affected Indian mutual fund
industry and its sentiments. At the end of the, there will be some suggestions for the regulator,
the intermediaries and the Investors. This is an attempt to minimize the level of negativity
and pessimism from the market and to create an atmosphere of trust, information and
optimism.

According to CII, all efforts at the moment are being synchronized towards attaining the
objective of financial inclusion. The drive to expand reach beyond Tier 1 cities and make
mutual fund offerings available to people in smaller towns and cities has indeed taken up the
attention of the industry. However, several components of such an initiative, like investor
awareness, broadening investor participation and product innovation, need to be aligned in
order to fully establish inclusive growth. The industry needs to give due emphasis on the
above factors, drawing out an efficient business and operating model to ensure that the
inherent challenges that the industry is facing is efficiently dealt with. Designing a competent
and all pervasive business model has all the more become important in the current scenario of
changing business and regulatory legislations.

According to KPMG report, The Mutual fund industry needs to have an outside-in
perspective as compared to inside-out perspective. Understanding investors needs should
be followed by a product channel alignment. A number of change catalysts discussed in the
previous section like technology, investment in B-15 cities, investment adviser etc. would be
42 | P a g e

required to help ensure the overall objective of prudent growth and profitability. Increasing
financial literacy will be the key to unlock the doors to B-15 and also to remove the
perception that equates mutual fund to only equity. Investor awareness campaigns should be
conducted to increase the AUM in smaller cities which would help industry to progress in a
holistic manner. AMC, distributors and IFAs are all doing their bit but AMFI and SEBI
should also play a major role in creating awareness. Knowledge about mutual fund industry
should be included in educational curriculum. For future growth, tax could act as an enabler
as tax benefits can be a pull factor for investors. The future potential of Investment Advisors
could be decided by Investors and the regulators. Presence of an unbiased advisor could build
investor trust on the one hand and reward performing products on the other.
According to CII Mutual fund summit 2013, the outlook of the mutual fund industry is
governed to a great extent by the economic situation in the country. The current economic
scenario with sticky inflation and rising fuel prices is likely to adversely impact perceptions,
resulting in depressed equity inflows into the market. They believe that the mutual fund
industry manifests huge opportunity for growth and further penetration, and this can be
achieved over time, with support from technology. The key lies in strengthening distribution
networks and enhancing levels of investor education to increase presence in rural areas. In
terms of opportunity, the infrastructure debt market has become very attractive, luring
investors to invest in this space.

According to Ms. Avani shah, Faculty Shree Chimanbhai Patel Institute of Management and
Research, Ahmedabad, and Dr. Narayan baser Associate Professor, Shri Jairambhai Patel
Institute of Management and Computer Application, Ghandhinagar, found that a mutual fund
is a common pool of money into which investors place their contributions that are to be
43 | P a g e

invested in accordance with a stated objective. Being a part of financial markets although
mutual funds industry is responding very fast by analyze investors perception and
expectations. In their study research of 305 mutual fund investors was conducted in
Ahmedabad using non-probability convenience sampling. After using One-Way ANNOVA,
researcher had come to a conclusion that Funds reputation, Withdrawal facilities, brand name,
Sponsors past performance in terms of risk & return varies among the investors of different
age group & investors different occupation group.

According to Prof Gauri Prabhu Associate Professor AISSMS Institute of Management, Pune
and Dr. N.M. Vechalekar Associate Dean, IndSearch, Pune, the Mutual Funds provide a
platform for a common investor to participate in the Indian capital market with professional
fund management irrespective of the amount invested. The Indian mutual fund industry is
growing rapidly and this is reflected in the increase in Assets under management of various
fund houses. Mutual fund investment is less risky than directly investing in stocks and is
therefore a safer option for risk averse investors. Monthly Income Plan funds offer monthly
returns and invest majorly in debt oriented instruments with little exposure to equity.
However it has been observed that most of the investors are not aware of the benefits of
investment in mutual funds. This is reflected from the study conducted in this research paper.
This paper makes an attempt to identify various factors affecting perception of investors
regarding investment in Mutual funds.

44 | P a g e

According to Deepti Goel Dept. of Economics, Assistant Professor, PGDAV College, D.U.,
India and Richa Gupta Dept. of Commerce Assistant Professor PGDAV College, D.U., India
found that the landscape of the financial sector in India is continuously evolving, accredited
to regulatory changes being undertaken, which is leading market participant like the asset
management companies (AMCs) and distributors to restructure their strategies and adopt
business models which will yield sustainable benefits. Some of the other trends which have
emerged strongly over the past year are heavy outflows triggered by market volatility and
partnering of asset management companies with banks, to increase the strength of distribution
networks.

According to Anand Singh Research Scholar, Faculty of Commerce, B.H.U, Varanasi and
Prof. C.P Mall, Professor, Faculty of Commerce, B.H.U, Varanasi found that investors are
pooled together for investment in a diversified portfolio of securities to spread risk and to
ensure steady returns. These funds bring a wide variety of securities within the reach of the
most modest of investors. It is essentially a mechanism of pooling together savings of large
number of investors for collective investment with an approved objective of attractive yield
and appreciation in value. The Mutual Funds offers different investment objectives such as
growth, income and Tax planning. In the recent times the Indian Capital Market has
witnessed new trends, one of them being the spectacular growth of Mutual Funds. There are
more than 600 schemes offered by Mutual Funds, and these funds have mobilized substantial
amount of the household savings.

45 | P a g e

CHAPTER- III
46 | P a g e

RESEARCH METHODLOGY
Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design, sampling
procedure & fieldwork done & finally the analysis procedure. The methodology used in the
study consistent of sample survey using primary data. The primary data has been collected
with the help of questionnaire. The questionnaire has been drafted & presented by the ICICI
Securities, which was in online mode
PROBLEM OF THE STUDY

Most of the customers of ICICI Mutual Fund simplified are inactive for long time.
For improving their service.
For creating awareness of their updated website among their existing customer.
To know about their future investment.

OBJECTIVE OF STUDY
To create awareness to its customer about Mutual Fund.
To make them aware of online portfolio of ICICI Direct.
To know about response of the customer for future investments in mutual fund.

47 | P a g e

SCOPE OF THE STUDY


All the analysis and suggestions are based on the analysis of the primary data, which I
will collect with the help of questionnaire.
A big boom has been witnessed in Mutual Fund Industry in recent times. A large
number of new players have entered the market and trying to gain market share in this
rapidly improving market.
The research was carried on in Kailash Colony. I had been sent at Kailash Colony
branch of ICICI Securities where I completed my project work.
SAMPLING FRAMEWORK:
Sample Size: - Sample of 50 customers of ICICI Securities will be taken into study
and their data will be collected.
Sample Area: - Sampling area will be taken around Delhi NCR.
Duration of project: - Time will be taken to complete the project is 2 months
DATA COLLECTION:
Collection of data (primary) by:
Questionnaire
Face to face interaction
DATA ANALYSIS:
After data collection, I am able to analyze customer views, perception and opinions
related to mutual fund and from this, ICICI Securities will come to know the customers
requirements.
DATA INTERPRETATION:
Interpretation of data is done by using statistical tools like Pie diagrams, Bar diagrams
etc. and using quantitative techniques (by using these techniques) accurate information
will obtained.
LIMITATIONS OF THE STUDY

48 | P a g e

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


conclusion. Their responses might not be fully true.
This study is only limited to Kailash Colony, therefore the conclusion may not be
universally applicable.
Since the researcher is a student, he lacks professional approach.

COLLECTION OF RESPONSES FROM THE RESPONDENTS

S.N
o.

Name

Rate the Demo on


the scale of 1-5
(5- Highest Score,
1 - Lowest Score)

Are you
Planning to
Invest in MF

Any Feedback /
Suggestion

1.
Vijay Mehandiratta

4 No

NA

Bhanwar Sharma

4 No

NA

Vivek Singh

4 No

good demo

Pravesh Kumar

3 No

Ok. service is good

Namrata Rashmi

4 No

good demo

Tribesh Choudhuri

3 No

ok

Mukul Garg

4 Yes

NA

Surender Chouhan

4 No

NA

Sunita Aggarwal
10. Debnath Banerjee
11. Surendra
Shekhawat
12. Sajinder Kaur
13. Saleem Khan
14. M Nair
15.
Anil Gautam
16.
Ravi Gupta
17. Anil Kumar
18. Rakesh Kumar

5 No
3 No

good
ok

3
4
5
5

NA
good
NONE
Ok. very good
Lack of knowledge
and experience.
personal loan
settlement
NA
NA

2.
3.
4.
5.
6.
7.
8.
9.

49 | P a g e

No
No
No
Yes

4 No
4 No
3 No
4 No

19. Arunabha Gupta


20. Jaishree Aggarwal
21. Vikas Bhardwaj
22. A Somani
23. Ashish Chamadiya
24. U Nair
25. Anjana Maikap
26.

Visalakshi
Satyamurthy
27. Ram Chauhan
28.
Kumkum Grover
29. Rakesh Rastogi
30. Kalindi Rastogi
31. Suchitra Dutta
32. Swaraj Barua
33. Syama Sundara
Obulapuram
34.
Danwati
35. Nitin Saxena
36. Yogesh Kumar
37. Nipun Lamba
38. Indu Lal
39. Sushmita Basu
40. Neelam Budhwar
41. Rishi Saxena
42. Shailendra Mishra
43. Sanjay Kumar
44. N Banik
45. Poonam Sharma
46. Archana Pandey
47.
Prakash Pradhan
50 | P a g e

4
4
3
3
3
4
3

No
No
No
No
No
No
No

5 Yes
4 No
3
4
4
2
3

No
No
No
No
No

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

3 No

NA

4
3
4
4
3
3
3
4
3
5
4
4
3

Very good demo.


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

Yes
Yes
No
No
No
No
No
No
No
Yes
No
No
No

4 Yes

48. Sanjay Kumar


49. Rajesh Savlani
50.

4 No
3 Yes

M Kathait
51. Ravi Mittal
52.

4 No
5 No

S Dey
53. Mohammed Arf
54. Narpinder Kaur
55. Mihir Singhal
56. Jay Shah
57. Habibur Rahman
58. Bharti Kukreti
59. Tanmaya Sahu
60. Anil Singla
61. Mukul Rastogi
62. Gyana Das

2
4
4
4
3
3
3
5
4
4
4

No
Yes
No
No
No
No
No
No
yes
No
No

NA
NA
Customer did not
know about daily
NAV changing
information.
Very good
Yes it is a good
product. I will ask
my friends.
NA
NA
NA
Good
Good
Ok. service is good
No
Ok. Good service
No
good

Responsibilities assigned by the project mentor:

I have to meet ICICI Securities customers and have to tell them about mutual fund
and its benefit.
I have to show mutual fund and ICICI Direct site demo to customers.
I am responsible to solve their queries about mutual fund.
If customers want to know about online portal and online trading I have to give them
site demo.
I have to make customer fill up one online feedback form.
SAMPLING TECHNIQUE: Study the Project, a Simple Random Sampling technique is
used.

51 | P a g e

DATA INTERPRETATION: Interpretation of data is done by using statistical tools like Pie
diagrams. Bar diagrams etc. and using quantitative techniques (by using these techniques)
accurate information is obtained.
CLASSIFICATION & TABULATION OF DATA:
The data thus collected were classified according to the categories, counting sheets & the
summary tables were prepared. The resultant tables were one dimensional, two-dimensional.

STATISTICAL TOOLS USED FOR ANALYSIS:


Out of the total respondents, the respondents who responded logically were taken into
account while going into statistical details & analysis of data. The tools that have been used
for analyzing data & inference drawing are mainly statistical tools like percentage, averages,
etc. As per questionnaire, I have find out different responses from different people. According
to their responses, I analyze the findings and draw certain remarks.

CHAPTER-IV
52 | P a g e

DATA ANALYSIS AND INTERPRETATION


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

Equity

Futures and option

Mutual funds

Insurance

Corporate FD

Debenture/ bonds

PPF

Others

None

Ans:

53 | P a g e

Responses

Responses

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


Analysis: It is seen in the above graph that most of the customers in ICICI securities prefer to make
investment in equity and mutual fund and less in F&O, insurance etc.

Ques 2. What is your preferred mode of investment?

54 | P a g e

Online

Offline

responses

responses

Figure no. 3: Preferred mode of investment.


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

55 | P a g e

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

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

Futures and option

Mutual funds

Insurance

Debenture/ bonds

None

Ans: Out of 50 customers not even a single person invested in any of the above mention
funds through ICICIdirect.com in the last 12 months. Mainly the customers assigned was
inactive customers.

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

56 | P a g e

NO

Yes
no

Figure no.4 Reponses of customer about awareness that they can invest in MF through
ICICIDirect.com.
Analysis: According to the survey, out of 50 customers, 47 customers already knew that they
can invest in MF through ICICI direct.com but there are still 3 customers who didnt knew
about this.
Q5. What are the reasons for not investing in mutual funds through ICICI direct.com?
I need assistance to invest in MF through ICICI direct.com
I need more knowledge on MF before I invest
I am not interested as I invest through other brokers/agents.
I do not invest in MF
Ans:

options

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


I need more knowledge on MF before I invest
I am not interested as I invest through other brokers/agents.
I do not invest in MF

respons
es
16
6
3
25

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

57 | P a g e

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

I need more knowledge


on MF before I invest

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

I do not invest in MF

Figure no 5. Figure showing reasons of customers for not investing in mutual funds
through ICICI direct.com
Analysis: According to the survey it is been seen that out of 50 customers, majority of
customers do not want to invest in mutual funds. There can be a lot of reasons for not
investing in mutual funds. The reason could be lack of awareness, fear of losing their money
and many more but still there are 16 customers out of 50 who want to invest in MF but want
some assistance to invest in MF.
Q6. Which of the following online transactions have you done in the past?
I buy movie tickets online

I buy flight tickets online

I book hotels online.

I use online banking

I do not do any online transactions.


Ans:

options

I buy movie tickets online


I buy flight tickets online
I book hotels online.
I use online banking
I do not do any online transactions.

responses
21
17
12
39
3

Table no2. Table showing responses of customers who have done online transactions
in the past.
58 | P a g e

responses
I buy movie tickets
online
I buy flight tickets
online
I book hotels online.
I use online banking
I do not do any online
transactions.

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


transactions in the past.
Analysis: According to the survey, it is been seen that most of the customers use online
transactions for using online banking, but some of the customers are also doing online
transactions for buying movie tickets, hotels. But still there are some customers who did not
do any online transactions.
Q7 How often do you transact online in the above mentioned transaction?
Monthly

Quarterly

Once in 6 months

once in a year

Ans.
options
Monthly
Quarterly
Once in 6 months
Once in a year

respons
es
32
7
6
5

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

59 | P a g e

responses
Monthly
Quarterly
Once in 6 months
Once in a year

Figure no. 7. Figure showing how regularly the customers used to transact online.
Analysis. According to a survey, out of 50 customers, 32 customers used to transact online
monthly. While there are 7 customers who used to transact online once in a quarter, while
there are still 5 persons who used to transact online once in a year.

Q8. Which medium of news information and analysis do you use to keep yourself updated on
investment products?
I discuss with my friends/family/ colleagues
I use financial websites for comparisons and news
I have a financial advisor/ broker/ MF distributor who provides me the information.
I read media reports
I prefer to do my own research
Ans:
60 | P a g e

responses

responses

Figure no. 8

Figure showing medium of news information and analysis customers use to

keep themselves updated on investment products.


Analysis: According to the survey, it is been seen that most of the customers read media
reports and prefer to do their own research to keep themselves updated on investment
products. While the customers using financial websites and who discus with their family and
friends to update themselves on investment products are less in numbers.
Q9. How do you check the performance of all/any of your investment?
I update investment details on a third party portfolio website and check regularly.
I ask my financial advisor/ broker/ Mf distributor to send me the information.
My broker/ bank provides me the information.
Others____________________
Ans:

Options

respons
es
7

I update investment details on a third party portfolio website and


check regularly.
I ask my financial advisor/ broker/ Mf distributor to send me the 7
61 | P ainformation.
ge
26
My broker/ bank provides me the information.
10
Others

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

responses
responses

Figure no. 9 Figure showing how does the customers check performance of all/any of their
investment.
Analysis: According to the survey, out of 50 customers, 26 customers ask their broker/bank to
provide them the information to check the performance of all/any of their investment. But 10
customers are still there who check performance of all/any of their investment on their own.

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


Yes
Ans:

62 | P a g e

No

responses

responses

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


relationship to ICICI direct.com
Analysis: According to the survey it is been seen that out of 50 customers 45 customers were
interested in switching their investment relationship to icicidirect.com while 5 customers
disagree to switch their relationship to icici direct.com.

Q11. Which of the following site features do you find useful at ICICI direct site?
Capital gain statement
Portfolio monitoring

63 | P a g e

Ease of purchase/redemption
Personalized research recommendations against holdings
Others
Ans:

Figure no.11 Figure showing responses of customers about the site features they found useful
at ICICIdirect.com.
Analysis: According to the survey it is found that most of the ICICI securities customers
found capital gain statement useful at icici direct site.

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

64 | P a g e

Customers even who know about mutual fund, are not investing their money into it
because of lack of knowledge about mutual fund.
Customers prefer to invest in other alternatives mostly in equity.
In future, customers would like to invest in mutual fund if ICICI Securities create

awareness and provide right knowledge about mutual fund among customers.
Most of the customers were using online mode of payment frequently.
Almost every customer were agree to continue with ICICI Securities services.
There was communication gap with some customers.
Mostly customers update themselves about investment decision by their own or take
advice with family and friends.

SUGGESTIONS AND RECOMMENDATIONS

ICICI Securities should provide proper guidance to its customers about mutual fund
though seminars or other way of interaction.

65 | P a g e

There should be one department, which will call customer once in a month and notice
their problem or their complaint so there would not be any communication gap.
At the time of opening account, ICICI Securities can offer one tutorial class about
mutual fund or about other investment plans so there would not be any lack of
knowledge in customer mind.
ICICI Securities can send details about investment decision to its customers through
e-mail or SMS.
Before making any investment financial advisors should first enquire about the risk
tolerance of the investors, their need, and time. By considering these three things they
can take the customers into consideration.

CONCLUSION
Running of successful Mutual Funds requires complete understanding the mind set of small
investors. This is a study taken to make an attempt to understand the financial behavior and
perception of ICICI Securities customers. I observed that many of customers have fear of
Mutual Fund. Many of customers do not invest in mutual fund due to lack of awareness
66 | P a g e

although they have money to invest. Most of customers prefer to invest in equity. Investors
should be made aware of the benefits. Nobody will invest till he/she is fully convinced of the
scheme.

REFERENCE
1. Jain, Sahil, (July-Aug. 2012), Analysis of Equity Based Mutual funds in India (IOSR
Journal of Business and Management (IOSRJBM) Volume 2, Issue 1), PP 01-04.
2. Kaur, Gurjeet, Sharma R.D, Mahajan Neha, Oct-Dec 2014, Segmentation of Bank
Customer by Loyalty and Switching Intentation, Vol(39) No.4.
3. CRISIL Research, Apr 2013, CRISIL Mutual Fund Year Book, PP 01-80
4. Sundar, Vijayalakshmi, Mar-Apr 2014, Growth and Development of Mutual fund
industry with reference to banking Sector Funds: An Indian Perspective, Financial &
Business management (IFBM), Vol.2 No.2 PP 01-05.
5. Hasan, Arshad Jafri, 2013, analysis of Mutual Fund Industry of India in the light of
New Regulation and International factors, I.J.E.M.S, Vol.4(2), PP01-03.
6. CII 6th Mutual fund Summit, 2010, international conference.
67 | P a g e

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


success.
8. CII Mutual Fund Summit, 2013, Indian Mutual Fund Industry: Unearthing the growth
potential in untapped markets, PP 04-26.
9. Shah, Avani & Baser Narayan, Oct 2012, Mutual Fund: Behavioral Finances
perspective, Asia pacific Journal of Marketing & management Review, Vol.1 No.2, PP
01-11.
10. Mehta, Shantanu & Shah, Charmi, Sept 2012, Preference of Investors for Indian
mutual funds and its performance Evaluation, Pacific Business review international,
Vol.5 issue 3, PP 01-16.
11. Prabhu, Gauri & Vechalekar, N.M, perception of Indian Investor towards investment
in mutual funds with special reference to MIP funds, IOSR Journal of Economics and
Finance (IOSR-JEF), PP 01-09.
12. Chakrabarti, Rajesh & Malik, Sarat & Khairnar, Sudhakar & Verma, Aadhaar, (2013),
penetration of Mutual Funds in India: Opportunities and Challenges, PP 01-62.
13. Subrahmanyam, N, (2008-09), Mutual Funds and Banking: India and Global
Experience, PP 03-54.
14. Goel, Deepti & Gupta, Richa, May 2014, Mutual Fund Industry in India: An
Overview, International journal of Emerging research in management & Technology
Vol. 3, Issue 5, PP 01-04.
15. Dunna, Murlidhar, Oct 2012, mutual Funds in India-Issues, Opportunities and
Challenges, Asia pacific journal of Marketing & Management Review, Vol 1, No.2 ,
PP 01-10.
16. Singh, Anand & Mall, C.P, 2007, Mutual Fund Industry in India: Recent trends &
Progress, PP 01-14.
17. http://www.icicigroupcompanies.com
18. http://www.icicisecurities.com
19. http://www.assetmanagement.hsbc.com/in/mutual-funds/learning-centre/investorprogrm/mutual_fund.html
20. http://www.mutualfundindia.com
21. www.sebi.com

68 | P a g e

Questionnaire

Name: ________________
Age: _________
Gender:

Male
Female

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

Futures and option

Mutual funds

Insurance

Corporate FD

Debenture/ bonds

PPF

Others

None

Q2. What is your preferred mode of investment?


Online

Offline

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

69 | P a g e

Futures and option

Mutual funds

Insurance

Debenture/ bonds

None

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

NO

Q5 what are the reasons for not investing in mutual funds through ICICI direct.com?
I need assistance to invest in MF through ICICI direct.com
I need more knowledge on MF before I invest
I am not interested as I invest through other brokers/agents.
I do not invest in MF
Q6. Which of the following online transactions have you done in the past?
I buy movie tickets online
I buy flight tickets online
I book hotels online.
I use online banking
I do not do any online transactions.

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

Quarterly

Once in 6 months

Once in a year

Q8. Which medium of news information and analysis do you use to keep yourself updated on
investment products?
I discuss with my friends/family/ colleagues
I use financial websites for comparisons and news
I have a financial advisor/ broker/ MF distributor who provides me the information.
I read media reports

70 | P a g e

I prefer to do my own research

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


I update investment details on a third party portfolio website and check regularly.
I ask my financial advisor/ broker/ Mf distributor to send me the information.
My broker/ bank provides me the information.
Others____________________

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


Yes

No

Q11. Which of the following site features do you find useful at ICICI direct site?
Capital gain statement
Portfolio monitoring
Ease of purchase/redemption
Personalized research recommendations against holdings
Others

Any suggestions/ recommendations__________________________________________________

71 | P a g e

72 | P a g e