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The project basically aims to find out the financial needs of individual and suggest according to his requirement of money at various intervals.
In this project the special emphasis done on Mutual Fund product and companies with ICICI Prudential and Kotak and to find out the analysis of the clients of the companies.
The project reflects information about products and services provided by the ICICI Prudential and Kotak in to their customer. This also include requirement and ways to acquire clients acquisition has been explained and the problems faced to handle the clients. Also I have compared the mutual funds on different parameters such as risk and returns, facilities, volume of investing money, good promotional scheme, redemption and investing time.
Objectives Of The Study
To take an overview of Mutual Fund Industry and encapsulate the various investment avenues available.
• To obtain a general understanding of the marketing strategies adopted by Mutual Fund Industry.
To make clients and let them know about different products of mutual fund offered by the ICICI Prudential and KOTAK.
To understand the problem faced by the existing clients and find ways to solve their queries at your level.
To study the market potential of ICICI Prudential Mutual Fund and Kotak Mutual Fund.
• To study the response of clients, so as to make a comparative study and also to study the preferred scheme and there investment time and money.
To give proper suggestion or recommendation to the company so that they can overcome from their weakness and can increase there number of clients and services.
59. a well-known and trusted name in financial services in India.573. has forged a position of pre-eminence in the Indian Mutual Fund industry as one of the largest asset management companies in the country with asset under management of Rs. in a span of just over eight years.About the Company Company Profile ICICI Prudential Asset Management Company enjoys the strong parentage of Prudential Plc. The AMC has a range of products to suit different risk and maturity profiles. 59.573.May 1998 Assets Under Management Number of Funds Managed Rs. 2008 Rs. one of UK’s largest players in the Insurance and fund management sectors and ICICI Bank. 160 Crore 2 As on May 31.08 crore (as of May 31. The company manages a comprehensive range of schemes to meet the varying investment needs of its investors spread across 68 cities in the country.08 Crore 40 4 . ICICI Prudential Asset Management Company. The joint venture was formed with the key objective of providing the Indian investor. Mutual Fund products to suit a variety of investment needs. 2008). Key Indicators At inception .
5 . and profit after tax of Rs.ICICI Bank is India’s second-largest bank with total assets of about Rs. to promote industrial development of India by providing project and corporate finance to Indian industry. life and non-life insurance.ICICI Ltd (Since merged into ICICI Bank Ltd) was established in 1955 by the World Bank. ICICI Bank has a network of about 710 branches and 45 extension counters and over 3. Hong Kong.658 crores as at March 31. 344. 3.271 ATMs. 2007 (Rs. ICICI Bank currently has subsidiaries in the United Kingdom. Russia and Canada. Since inception ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India . the Government of India and the Indian industry. venture capital and asset management. ICICI Bank setup its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. 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. 2006). Sri Lanka and Dubai International Finance Centre and representative offices in the United States.540 crores for the year ended March 31. United Arab Emirates. 2007. ICICI Bank was originally promoted in 1994 by ICICI Limited.110 crores for the year ended March 31. ICICI Bank is the only Indian company to be rated above the country rating by the international rating agency Moody’s and the only Indian company to be awarded an investment grade international credit rating. and Indian Financial Institution and was its wholly owned subsidiary. The bank enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies. Bahrain. branches in Singapore. 2.
Asia and continental Europe. South Africa and Bangladesh. Prudential is the leading financial services group with an extensive network of over 30 life insurance and 10 fund management operations spanning 13 diverse markets. Established in 1848. 6 .000 employees worldwide as of December 31. £267 billion in assets under management and more than 26. As a group prudential plc has. Prudential plc is a leading international financial services group. ICICI Bank is the most valuable bank in India in terms of market capitalization. as of 31 Dec 2007. Jackson National Life. acquired by prudential in 1986. and headquartered in London. with around £250 billion of fund under management (as of 31 December 2006). In Asia. is a leading provider of long-term savings and retirement products to retail and institutional customers throughout the United States. 2006. Prudential began its first Asian operations in India in 1923. Prudential plc is a leading international financial services group providing retail financial products and services and fund management to many millions of customers worldwide. offering a significant portfolio of life insurance and fund management products in the United Kingdom.China. UK subsidiary of ICICI Bank has established a branch in Belgium. the United States. In the United Kingdom Prudential is a leading life and pension provider offering a range of retail financial products. M&G is Prudential’s UK and European Fund manager.
B Ramakrishna. He and his wife Kinnari live in Mumbai with their sons Mihir and Anuj.Senior Management ICICI Prudential Mutual Fund Nimesh Shah. • He was associated with one of the first batches of senior managers selected to lead the foray of ICICI Bank into the international arena. Nimesh was Senior General Manager at ICICI Bank and has over 14 years experience in banking and financial services.Chief Financial Officer 7 . • Nimesh has completed his Charted Accountancy and Cost Accountancy qualifications. He is an ardent music buff and loves listening to old Hindi music. At ICICI Group. • Nimesh enjoys traveling.Managing Director and CEO • Nimesh Shah joined ICICI Prudential AMC as its Managing Director and CEO in July 2007. He led ICICI Bank’s foray into the Middle-Eastern region and Africa. he has handled many responsibilities including project finance. Prior to joining ICICI Prudential AMC. corporate banking and international banking.
Budgetary Control.. • He has to his credit more than 19 years of experience in companies like American Express Bank. Manoj Agarwal-Chief Operating Officer • Manoj Agarwal joined ICICI Prudential AMC in February 2007 in the capacity of Chief Operating Officer. He is married to Saguna and has two daughters Vasudha and Manasa. • He is a Chartered Accountant and has also successfully completed his Cost Accountancy. GE Countrywide and HDFC Chubb General Insurance Company. • An MBA in Finance from Jamanalal Bajaj Institute. he has assumed key responsibilities of Financial & Corporate planning. ITC Agrotech and Services Ltd and Marico Industries. Mumbai his responsibilities in ICICI Prudential AMC includes developing a platform for delivering excellent customer service. best practices standards for operating procedures. In his last position held at HDFC Chubb GIC he has Head of Operations and Technology. Dalmiya Industries Ltd. He has around 20 years of experience with companies like Union Carbide Ltd. In his role as Chief Financial Officer in the last 3 years at ICICI Prudential AMC. His last position held at Marico was of General Manager Corporate Finance. • Ramakrishna as he is fondly called loves traveling and is an ardent cricket and music lover.. 8 . efficient cost structure. Risk Management and Corporate Finance.• • Ramakrishna joined ICICI Prudential AMC in September 2004 as the Chief Financial Officer.
to stock broking. KMAMC started operations in December 1998 and has over 4 Lac investors in various schemes. Mauritius and Singapore.Corporate Profile Kotak Mahindra is one of India's leading financial institutions.3. Kotak Mahindra Asset Management Company Limited (KMAMC). the group caters to the financial needs of individuals and corporates. The group has a net worth of around Rs. KMMF offers schemes catering to investors with varying risk . 9 . to investment banking. London.6 million customer accounts through a distribution network of branches.800 employees across its various businesses servicing around 2.return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. to life insurance.200 crore and employs around 10. From commercial banking. to mutual funds. Dubai. is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF). representative offices and satellite offices across 300 cities and towns in India and offices in New York. a wholly owned subsidiary of KMBL. franchisees. offering complete financial solutions that encompass every sphere of life.
Kotak Mahindra Bank Limited.
The erstwhile Sponsor company, Kotak Mahindra Finance Limited (KMFL) was converted into Kotak Mahindra Bank Limited (Kotak Bank) in March 2003 after being granted a banking license by the Reserve Bank of India. Thus, the Sponsor of the Fund is Kotak Bank. KMFL promoted by Mr. Uday S. Kotak, Mr. S. A. A. Pinto and Kotak & Co., was incorporated on November 21, 1985 under the name Kotak Capital Management Finance Limited. In early 1986, the promoters were joined by Late Mr. Harish Mahindra and Mr. Anand G. Mahindra and the Company's name was changed to Kotak Mahindra Finance Limited. Kotak & Co. (now Kotak & Co. Limited) is a highly respected trading company of Mumbai, with international business. Mr. Uday Kotak, a scion of the Kotak family, was an outstanding student through school, Sydenham College (Bombay University) and Jamnalal Bajaj Institute of Management Studies (Bombay University). Mr. S. A. A. Pinto, trained as a lawyer, has held senior positions in well-known organisations like ICI and Grindlays Bank. For instance, he was part of the team in Grindlays Bank, which started the first merchant banking unit in India in 1968. Mr. Harish Mahindra was an industrialist of repute and had played a prominent role in social service and public life, thereby earning him high esteem. Mr. Anand Mahindra, an MBA from Harvard University, is the Managing Director of one of India's most reputed industrial firms, Mahindra & Mahindra Limited. KMFL started with a capital base of Rs. 30.88 lakh. From being a provider of a single financial product, KMFL grew substantially during the seventeen years of its existence into a highly diversified financial services company and has now converted into a Bank. As on September 30, 2005, the net worth of Kotak Bank is around Rs. 800 crore and combined with its subsidiaries, the Group net worth (before minority interest) is around Rs. 2,000 crore. There are over 47,000 shareholders of Kotak Bank. The Sponsor and its subsidiaries / associates offer wide ranging financial services such as loans, lease and hire 10
purchase, consumer finance, home loans, commercial vehicles and car finance, investment banking, stock broking, primary market distribution of equity and debt products and life insurance. The group has offices in over 88 Indian cities and also present internationally in Mauritius, London, Dubai and New York. Kotak Mahindra (UK) Limited, an ultimate subsidiary of Kotak Bank, is the first company owned from India to be registered with the Financial Services Authority in UK. Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak Bank and Old Mutual Plc based in the UK and with large presence in the South African insurance market. Some of the other subsidiaries of Kotak Bank are Kotak Mahindra Securities Limited, Kotak Mahindra Prime Limited, Kotak Mahindra International Limited, Kotak Mahindra Private-Equity Trustee Limited, Kotak Mahindra Investments Limited, Kotak Mahindra Inc., and Kotak Forex Brokerage Limited.The Sponsor has been consistently profitable and dividend paying company since inception. All group companies are professionally run companies, employing over 5,000 professional staff including CAs, MBAs and Engineers.
• • • •
Kotak Mahindra Bank Ltd. Kotak Mahindra Capital Company Ltd. Kotak Mahindra Prime Ltd. Kotak Mahindra Asset Management Company
Senior Management Kotak Mutual Fund
Chief Executive Officer: Mr. Sandesh Kirkire
Mr. Sandesh Kirkire is a Mechanical Engineer, and holds a Masters degree in Management Studies from Jamanalal Bajaj Institute of Management Studies (JBIMS), Mumbai University.
• • •
Following assignments with SBI Capital Markets Ltd. and ITC Bhadrachalam Finance & Investments Ltd. Mr. Kirkire joined the Kotak Mahindra Group in 1994. He has 15 years of experience in the financial services space spans Corporate Finance, Proprietary Trading, Investment Banking, Treasury Sales Debt Market Trading and Debt Fund Management.
Mr Kirkire has earned several awards in his last assignment as CIO (Debt) with the AMC, a position he held till May 2005.
Chief Strategist and Global Head Equity: Mr. Alroy Lobo
Mumbai University. Audit and Taxation matters for clients. • Since joining the Kotak Group. Finance. for the Retail Assets Group and KMFL's transition to Kotak • Mr. Systems. MIS. Chief Operations Officer : Mr. Mr Lobo’s last assignment was Head of Institutional Equities at Kotak Securities. • Prior to joining the Kotak Group in August 1994. Audit and Taxation. technology). Accounting. Retail Assets. handling Accounting. and oversees the Operations. Mr. Krishnan • He is a Chartered Accountant and Cost Accountant with over 11 years of experience in the fields of Operations. Mr. R. Systems Development and Implementation. He worked as Equity Research Analyst (pharmaceuticals. and Chief Operations Officer. Krishnan joined Kotak Mutual in August 2004 as Senior Vice President. head of research and equity strategist. His prior assignments were with HMG Financial Services in equity research and with Godrej and Boyce in evaluating companies as vendors. • • • He has past experience of over 13 years in institutional equities.• Mr Alroy Lobo is a Mechanical Engineer. 13 . at Kotak Bank. Mr. Krishnan has handled major assignments like the US GAAP implementation for the erstwhile Kotak Mahindra Finance Limited (KMFL) Bank. and has a Masters degree in Management Studies from Sydenham Institute of Management. Krishnan's latest assignment was as Head . Krishnan was a practicing Chartered Accountant for two years.Operations. and subsidiary/group companies. Accounting and IT functions of the Fund.
INTRODUCTION TO MUTUAL FUND 14 .
Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified. The flow chart below describes broadly the working of a mutual fund: 15 . The money thus collected is then invested in capital market instruments such as shares.Introduction to Mutual Fund A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. professionally managed basket of securities at a relatively low cost. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. debentures and other securities.
MUTUAL FUND OPERATION FLOW CHART There are many entities involved in this and the diagram below illustrates the organizational set up of a mutual fund: ORGANIZATION OF A MUTUAL FUND 16 .
SPONSOR, TRUSTEE, AMC AND OTHER CONSTITUENTS
• • •
Mutual funds in India have a 3-tier structure of Sponsor-Trustee-AMC. Sponsor is the promoter of the fund. Sponsor creates the AMC and the trustee company and appoints the boards of both these companies, with SEBI approval.
• • • •
The mutual fund is formed as trust in India, and not as a company. In the US mutual funds are formed as investment companies. The AMC’s capital is contributed by the sponsor. Investors’ money is held in the Trust (the mutual fund). The AMC gets a fee for managing the funds, according to the mandate of the investors.
The trustees make sure that the funds are managed according to the investors’ mandate.
Sponsor should have at least a 5-year track record in the financial services business and should have made profit in at least 3 out of the 5 years.
Sponsor should contribute at least 40% of the capital of the AMC.
• • • •
Trustees are appointed by the sponsor with SEBI approval. At least 2/3 of trustees should be independent. At least ½ of the AMC’s Board should be of independent members An AMC cannot engage in any business other than portfolio advisory and management.
• • • • • • •
An AMC of one fund cannot be Trustee of another fund. AMC should have a net worth of at least Rs. 10 crore at all times. AMC should be registered with SEBI. AMC signs an investment management agreement with the trustees. Trustee Company and AMC are usually private limited companies. Trustees are required to meet at least 4 times a year to review the AMC. The investors’ funds and the investments are held by the custodian, who is the guardian of the funds and assets of investors.
Sponsor and the custodian cannot be the same entity. R&T agents manage the sale and repurchase of units and keep the unit holder accounts.
If the schemes of one fund are taken over by another fund, it is called as scheme
take over. This requires SEBI and trustee approval.
If two AMCs merge, the stakes of sponsors changes and the schemes of both funds come together. High court, SEBI and Trustee approval needed. • If one AMC or sponsor buys out the entire stake of another sponsor in an AMC, there is a take over of AMC. The sponsor who has sold out, exits the AMC. This needs high court approval as well as SEBI and Trustee approval.
Investors can choose to exit at NAV if they do not approve of the transfer. They have a right to be informed. No approval is required, in the case of open-ended funds.
For closed-end funds, investor approval is required for all cases of merger and takeover (as per the curriculum). Closed end fund investors also do not have exit option.
Price changes in these assets are driven by global events occurring in faraway places. real estate. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. professionally managed portfolio at a relatively low cost. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. skills.What is a Mutual Fund? A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. bonds and other fixed income instruments. derivatives and other assets have become mature and information driven. brokerage dues and bank transactions etc. These could range from shares to debentures to money market instruments. A typical individual is unlikely to have the knowledge. investments. Each Mutual Fund scheme has a defined investment objective and strategy. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each 20 . understand their implications and act speedily. The income earned through these investments and the capital appreciations realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro rata). time nor the expertise to undertake portfolio investments successfully. inclination and time to keep track of events. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. who otherwise would have neither the means. A mutual fund is the answer to all these situations. A mutual fund is the ideal investment vehicle for today’s complex and modern financial scenario. Mutual Fund offers an indirect route of participation in stock markets for small investor. Markets for equity shares. An individual also finds it difficult to keep track of ownership of his assets.
The objectives of SEBI are – to protect the interest of investors in securities and to promote the development of and to regulate the securities market. All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of Regulations. Globally. It may be mentioned here that Unit Trust of India (UTI) is not registered with SEBI as a mutual fund (as on January 15. investments and transaction processing.investor. 21 . there are thousands of firms offering tens of thousands of mutual funds with different investment objectives. 2002). The regulations were fully revised in 1996 and have been amended thereafter from time to time. Thereafter. In the year 1992. In effect. History of Mutual Funds in India and role of SEBI Unit Trust of India was the first mutual fund set up in India in the year 1963. As far as mutual funds are concerned. Government allowed public sector banks and institutions to set up mutual funds. In early 1990s. SEBI has also issued guidelines to the mutual funds from time to time to protect the interests of investors. SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. mutual funds collectively manage almost as much as or more money as compared to banks. SEBI notified regulations for the mutual funds in 1993. There is no distinction in regulatory requirements for these mutual funds and all are subject to monitoring and inspections by SEBI. mutual funds sponsored by private sector entities were allowed to enter the capital market. the mutual fund vehicle exploits economies of scale in all three areas research. Today. The risks associated with the schemes launched by the mutual funds sponsored by these entities are of similar type. Securities and exchange Board of India (SEBI) Act was passed.
LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87).004 crores. 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. 22 . Bank of India (Jun 90). It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. Punjab National Bank Mutual Fund (Aug 89).700 crores of assets under management. The history of mutual funds in India can be broadly divided into four distinct phases First Phase – 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament.History of the Indian Mutual Fund Industry The mutual fund industry in India started in 1963 with the formation of Unit Trust of India. at the initiative of the Government of India and Reserve Bank the. SBI Mutual Fund was the first non. public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).At the end of 1993. Bank of Baroda Mutual Fund (Oct 92). Indian Bank Mutual Fund (Nov 89). At the end of 1988 UTI had Rs. the mutual fund industry had assets under management of Rs. Second Phase – 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non.UTI.47.6. The first scheme launched by UTI was Unit Scheme 1964.
conforming to the SEBI Mutual Fund Regulations. with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.44. the assets of US 64 scheme. except UTI were to be registered and governed. The second is the UTI Mutual Fund Ltd.541 crores of assets under management was way ahead of other mutual funds.21.835 crores as at the end of January 2003. 1.805 crores. representing broadly. and with recent mergers taking place among 23 . BOB and LIC.29. there were 33 mutual funds with total assets of Rs. 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. As at the end of January 2003. 1993 was the year in which the first Mutual Fund Regulations came into being. The Unit Trust of India with Rs. assured return and certain other schemes.Third Phase – 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. following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.76. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. giving the Indian investors a wider choice of fund families. The Specified Undertaking of Unit Trust of India.000 crores of assets under management and with the setting up of a UTI Mutual Fund. PNB. Also. a new era started in the Indian mutual fund industry. under which all mutual funds. sponsored by SBI. Fourth Phase – since February 2003 In February 2003. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
GROWTH IN ASSETS UNDER MANAGEMENT 24 . the mutual fund industry has entered its current phase of consolidation and growth.different private sector funds. The graph indicates the growth of assets over the years.
Benefits of Investing in Mutual Fund 25 .
Normally returns on investment from a single security depend on how well or how poorly the company fares. The whole team analyses the performance and balance sheet of companies and selects them to achieve the objectives of the scheme. Diversification: The biggest advantage of mutual funds is the diversification of which it provides to the funds of Investors. and so on. even if two investments go bad other investments may average your returns. then international. then adding bonds. By doing this your investment returns get averaged. Diversification is the idea of spreading out your money across many different types of investments. Optimum Returns: By nature. the other benefits in investing in Mutual Funds are: Professional Management: Mutual Funds employ the services of experienced and skilled professionals and dedicated investment research team. The managers have real-time access to crucial market information and are able to execute trades on the largest and most cost-effective scale.Mutual Funds offer several benefits to an investor that unmatched by the other investment options. Mutual funds are set up to buy many instruments (even hundreds or thousands). But with mutual funds your money is invested across different companies or sectors. 26 . you can diversify even more by purchasing different kinds of stocks. Beyond that. Choosing to diversify your investment holdings reduces your risk tremendously. The major benefits are good post-tax returns and reasonable safety. When one investment is down another might be up. a mutual fund is multiple investment opportunities bundled into one. This means. The most basic level of diversification is to buy multiple instruments rather than just one.
Convenient Administration: 27 . regular withdrawal plans and dividend reinvestment plans enabling systematic investment or withdrawal of funds. An investor through Mutual Funds can be benefited from a portfolio. international small companies).e.growth companies. . Small investors with low investment fund are unable to high-grade or blue chip stocks. Low Cost and Transparency: Investment in Mutual Funds is a less expensive way in comparison to a direct investment in capital market. low-grade corporate bonds. In close-ended schemes. Flexibility and Affordability: Investment in Mutual Funds offers a lot of flexibility with features of schemes such as regular investment plan. Moreover Mutual Funds have to disclose their holdings. the units can be sold on a stock exchange at the prevailing market price. investment pattern and the necessary information before all investors under a regulation framework. but if you purchased a few mutual funds you could be done in a few hours because mutual funds automatically diversify in a predetermined category of investments (i.It could take you weeks to buy all these investments. Liquidity: The investor can get the money promptly at the net asset value related prices from the Mutual Funds open-ended schemes.
Different Types of Mutual Fund Schemes 28 . Well regulated: All mutual funds are registered with Securities and Exchange Board of India (SEBI) and function within the provisions and regulations that protect the interests of investors. earnings from equity mutual funds in the form of dividends are tax-free. SEBI not only regulates the working of stock exchanges and their intermediaries but also prohibits fraudulent and unfair trade practices relating to securities markets and insider trading in securities. Personal Service: One call puts you in touch with a specialist who can provide you with information you can use to make your own investment choice. delayed payments and follow up with brokers and companies. They will provide you personal assistance in buying and selling your fund units. Tax-free Returns: Currently. Also income generated from investments in an equity scheme for more than a year is tax-free (That is. with the imposition of monetary penalties on erring market intermediaries.Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries. if there is no long-term capital gain). provide fund information and answer questions about your account status. Mutual Funds save your time and make investing easy and convenient.
There are wide varieties of Mutual Fund schemes that cater to investor needs. financial position. • By Structure – Open Ended Schemes – Close Ended Schemes – Interval Schemes • By Investment Objectives – Growth Schemes – Income Schemes – Balance Schemes – Money Market Schemes • Other Schemes – Tax Saving Schemes • Special Schemes – Index Schemes – Sector Specific Schemes • By Structure 29 . The mutual fund schemes can be classified according to both their investment objective (like income. risk tolerance and return expectations. growth. tax saving) as well as the number of units (if these are unlimited then the fund is an open-ended one while if there are limited units then the fund is close-ended). whatever the age.
5-7 years. a) Any time exit option : The issuing company directly takes the responsibility of providing an entry and an exit. These schemes do not have a fixed maturity period. The fund is open for subscription only during a specified period at the time of launch of the scheme. the funds continue to remain attractive investment vehicles. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. open-ended schemes do not have a fixed maturity . there is no cap on the amount you can buy from the fund and the unit capital can keep growing. c) Any time entry option : An open-ended fund allows one to enter the fund at any time and even to invest at regular intervals (a systematic investment plan).g.i. b) Tax advantage : Though Budget 2004 proposals envisage a tax rate of 20.Open-ended schemes An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices.91% (Corporate investors) and 13. The key feature of open-end schemes is liquidity.e. These funds are sold at the NAV based prices. In equity plans there is no distribution tax. signature verifications and bad deliveries. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. These schemes have unlimited capitalization. generally calculated on every business day. This provides ready liquidity to the investors and avoids reliance on transfer deeds. These funds are not generally listed on any exchange. In order to provide an exit route to the investors.06875%(Non-Corporate investors) on dividend distribution made by the Debt funds. Close-ended Fund/ Scheme A close-ended fund or scheme has a stipulated maturity period e. SEBI Regulations stipulate that at least one of the two exit routes is 30 .
Such schemes normally invest a major part of their corpus in equities. either repurchase facility or through listing on stock exchanges. Such funds have comparatively high risks. current income or tax-exempt income. etc. Growth / Equity Oriented Scheme 31 . Interval Fund/Scheme These schemes combine the feature of open ended and closed ended schemes. safety of principal. • Equity Oriented Scheme The aim of growth funds is to provide capital appreciation over the medium to long term. In general mutual funds fall into three general categories: • • Equity Funds invest in shares or equity of companies. capital appreciation. They may be traded on the stock exchange or may be open for sale or redemption during the predetermined intervals at NAV based prices. • By Investment Objectives Mutual funds have specific investment objectives such as growth of capital. Fixed-Income funds (Debt Funds) invest in government or corporate securities that offer fixed rates of return. These mutual funds schemes disclose NAV generally on weekly basis. These schemes provide different options to the investors like dividend option.provided to the investor i.e. Balanced Funds invest in a combination of both stocks and bonds.
etc. NAVs of such funds are likely to increase in the short run and vice versa. opportunities of capital appreciation are also limited in such funds. If the interest rates fall. The NAVs of such funds are affected because of change in interest rates in the country. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Balanced Fund 32 . Such schemes generally invest in fixed income securities such as bonds. Debt Oriented Scheme The aim of income funds is to provide regular and steady income to investors. Such funds have comparatively high risks. government securities and money market instruments. Such funds are less risky compared to equity schemes. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. long term investors may not bother about these fluctuations. However. corporate debentures. The mutual funds also allow the investors to change the options at a later date. Such schemes normally invest a major part of their corpus in equities. These funds are not affected because of fluctuations in equity markets. corporate debentures. These schemes provide different options to the investors like dividend option. The investors must indicate the option in the application form. Government securities and money market instruments. and the investors may choose an option depending on their preferences. opportunities of capital appreciation are also limited in such funds. Income / Debt Oriented Scheme The aim of income funds is to provide regular and steady income to investors. capital appreciation. Such schemes generally invest in fixed income securities such as bonds.The aim of growth funds is to provide capital appreciation over the medium to longterm. The NAVs of such funds are affected because of change in interest rates in the country. However. However.
These schemes invest exclusively in safer short-term instruments such as treasury bills.pledging and transfer during the lock in period of 3 years.00. These are appropriate for investors looking for moderate growth. up to a maximum of Rs 1.The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. these schemes offer the benefit of section 80(C) IT Act. commercial paper and interbank call money. • Special Schemes 33 . Lock in period : The units under ELSS are prohibited from trading . certificates of deposit. Equity Linked Savings Scheme (ELSS) and Pension Funds are exempt from tax under section 88 of the Income Tax Act. etc. NAVs of such funds are likely to be less volatile compared to pure equity funds. Returns on these schemes fluctuate much less compared to other funds. They generally invest 40-60% in equity and debt instruments. • Other Schemes Tax Saving Schemes Some schemes are offered specifically for the investor to avoid being taxed heavily. Equity linked saving schemes(ELSS).000. these schemes are open ended growth schemes with a mandatory 3 year lock in. government securities. These funds are also affected because of fluctuations in share prices in the stock markets. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. However. Money Market or Liquid Fund These funds are also income funds and their aim is to provide easy liquidity. 1961 in India. preservation of capital and moderate income. The main feature of ELSS areRepurchase are permitted after a period of 3 years.
While these funds may give higher returns.Index Schemes Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index. Pharmaceuticals. Fast Moving Consumer Goods (FMCG). etc. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. they are more risky compared to diversified funds. e. Sector Specific Schemes These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. Cost of investing in Mutual Funds 34 .g. The returns in these funds are dependent on the performance of the respective sectors/industries. S&P NSE 50 index (Nifty). They may also seek advice of an expert. Petroleum stocks. Software. etc these schemes invest in the securities in the same weightage comprising of an index.
It may be up to 2 percent of course for many schemes it is nil. Entry Load Entry load or sales load is the load imposed when the load imposed when the units are purchased.There are four type of cost associated with mutual fund investing. • Initial Expenses • Entry Load • Annual Recurring Expenses • Exit Load Initial Expenses Initial expenses include items such as brokerage fees and commission. Schemes that have an entry load are called load schemes and schemes that have no entry load are called no load schemes. Marketing and advertising expenses . Annual Recurring Expenses 35 . printing and distribution costs and so on which are incurred when the schemes is launched. Initial expenses up to 6% of the amount mobilized can be charged to the schemes.
Exit Load Exit load or redemption load is the load imposed when the units are sold back to the mutual fund. These include the investment management and advisory fees. The annual recurring expenses are expressed as a percentage of the amount of the respective schemes average weekly net assets. audit fees. Annual recurring expenses tend to be more for equity schemes and less for liquid schemes.It refers to the outgoing fees and expenses of operating various schemes. In practice it varies from 0 % to 3% this load is imposed to deter investors from withdrawing from the schemes. register fees. trustee fees. Risk involved in mutual funds 36 . and so on.
have a greater chance of earning significantly higher returns over time than those who invest in only the most conservative investments. bonds and money market securities. you instantly spread your risk over a number of different companies. A bond with below-average risk for examples should not be compared to stock fund with below average risk. You can also diversify over several different kinds of securities by investing in different mutual funds. Bond values are inversely related to interest rates. Diversification is a basic risk management tool that you will want to use throughout your lifetime as you rebalance your portfolio to meet your changing needs and goals. For example.helps moderate your risk and enhance your potential return. Additionally. If interest rates go up. Mutual fund faces risks based on the investments they hold. further reducing your potential risk. a bond funds faces interest rate risk and income risk. Systematic Investment Plan (SIP) 37 . a diversified approach to investing -.combining the growth potential of equities with the higher income of bonds and the stability of money markets -.Different mutual fund categories as previously defined have inherently different risk characteristics and should not be compared side by side. Even though both funds have low risk for their respective categories. Investors. Diversification When you invest in one mutual fund. Bond yields are directly related to interest rates falling as interest rates falls and rising as interest rises. bond values will go down and vice versa. Diversification and Automatic Investing (SIP) are two key techniques you can use to reduce your investment risk considerably and reach your long-term financial goals. Income risk is greater for short term bond fund than for a long term bond fund. who are willing to maintain a mix of equity shares. stock funds overall have a higher risk / returns potential than bond funds. • Managing Risk Mutual funds offer incredible flexibility in managing investment risk.
00 88.90= Rs 21.63 69.90 Average unit cost Rs 12.6/12 = Rs 9.25 13.10 5.) 10 8.435.40 14.95 108. • Types of Risk 38 .44 1.) Initial Investment 1 2 3 4 5 6 7 8 9 10 11 TOTAL 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12.40 6.93 185. 000 under the Systematic Investment Plan on a quarterly basis.25 10.20 7.395/Using the SIP strategy the investor can reduce his average cost per unit.14 163.9 = Rs 8.95 135. of Units Purchased 100 121. for a continuous period.000/1.36 Average unit price 109.The Unit holders of the Scheme can benefit by investing specific Rupee amounts periodically.11 100.40 No.67 121.19 166.89 74.000 Purchase Price (Rs.435. Here is an illustration using hypothetical figures indicating how the SIP can work for investors: Suppose an investor would like to invest Rs. Mutual fund SIP allows the investors to invest a fixed amount of Rupees every month or quarter for purchasing additional units of the Scheme at NAV based prices.20 9.13 Unit price at beginning of next quarter Rs 14.00 11.9 * 14.00 8.1. The investor gets the advantage of getting more units when the market is turned down.90 Market value of investment 1435. Amount Invested (Rs.40 6.395/The investor liquidates his units and gets back Rs 21.
Inflation Risk Sometimes referred to as "loss of purchasing power. A diversified portfolio can help in offsetting these changes.All investments involve some form of risk. how stable is the company or entity to which you lend your money when you invest? How certain are you that it will be able to pay the interest you are promised. highly profitable company and a fledgling corporation may be affected. This change in price is due to "market risk". In short. leaving you with less real purchasing power than when you started (Rs. Even an insured bank account is subject to the possibility that inflation will rise faster than your earnings. When this happens. Credit Risk The possibility that a bond issuer will fail to repay interest and principal in a timely manner. Consider these common types of risk and evaluate them against potential rewards when you select an investment. the stock prices of both an outstanding. you run the risk that you'll actually be able to buy less. Market Risk At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. Inflation risk also occurs when prices rise faster than your returns. Employees Risk 39 . 1000 gets you less than it got your father when he was your age). or repay your principal when the investment matures? Interest Rate Changing interest rates affect both equities and bonds in many ways. It’s also called default risk. Investors are reminded that "predicting" which way rates will go is rarely successful." Whenever inflation sprints forward faster than the earnings on your investment. not more.
investments will be predominantly in equities of select companies in the particular sectors.An industries' key asset is often the personnel who run the business i. necessary to attract key personnel and also to retain them to meet the changing environment and challenges the sector offers. Changes in exchange rates may. Given the ever-changing complexion of few industries and the high obsolescence levels. trained and motivated personnel is very critical for the success of industries in few sectors.e. It is. Investment Risk The sectoral fund schemes. the NAV of the schemes are linked to the equity performance of such companies and may be more volatile than a more diversified portfolio of equities. have a positive or negative impact on companies which in turn would have an effect on the investment of the fund. Facilities Provided By Mutual Funds 40 . Accordingly. therefore. intellectual properties of the key employees of the respective companies. Exchange Risk A number of companies generate revenues in foreign currencies and may have investments or expenses also denominated in foreign currencies. availability of qualified. Government Policies Changes in Government policy especially in regard to the tax benefits may impact the business prospects of the companies leading to an impact on the investments made by the fund. therefore.
Individual participate in these options for themselves. 41 . and corporate participate for their employees.Growth Option Dividend is not paid –out under a growth option and the investors realize only the capital appreciation on the investment (by an increase in NAV). Dividend Payout Option Dividend is paid out to investors under the dividend Payout Option. Retirement Pension Option Some schemes are linked with retirement. Insurance Option Certain Mutual Fund offer schemes that provides insurance cover to investor as an add benefit. the NAV of the mutual fund scheme falls to the extent of the dividend payout. However. Dividend Re-investment Option Here the dividend accrued on mutual funds is automatically re-investing in purchasing additional units in open ended funds. In most cases mutual fund offers the investors an option of collecting dividends or re-investing the same.
ICICI PRUDENTIAL MUTUAL FUND PRODUCTS Fund Facts 42 .
On the debt market side. return and risk that they desire. understand this reality and therefore to meet the investment needs of different kinds of investors we offer a range of solutions that enable them to create a portfolio of the tenor. Our debt products are managed to minimize liquidity & credit risks and also manage interest rate risks. The chart below plots schemes offered by ICICI Prudential Mutual Fund on a risk-return scale that helps you zero-in on the relevant schemes that match your risk taking ability and the returns you desire. to long term interest rate view-based products. sectors. As an investor you could be very cautious or very aggressive or someone who would like to maintain a balance. our equity funds offer a choice of size. themes and styles to enable participation in the broad market and its segments. from simple parking solutions for efficient utilization of each rupee for each day. On the equity market side. our range spans varying time horizons and incomes. They come with periodic dividend and growth options to enable you to choose your income streams in a manner most efficient for your needs.and that's why what's right for someone else may not be right for you. So is the case with your investment needs. 43 .You are unique . We at ICICI Prudential Mutual Fund.
ICICI Prudential Dynamic Plan Investment Philosophy 44 .
73% 36.lCICI Prudential Dynamic Plan is a diversified equity plan that follows the growth investment philosophy to invest in a portfolio of large.91% 80.89% 2005-06 98.49% 14.84% 49.57% 45.71% 44.85% 2004-05 43.01% 120.00% 100.62% Benchmark Index Return 26. It offers a portfolio of stocks selected through rigorous bottom-up fundamental analysis across market.14 25.00% 60.52% 67.53 10.00 Dynamic Plan Return 17.16% 12.00% 80.06 67.15% 2006-07 18.00% 20.00% 0. mid and small-cap stocks.00% 40.55% 23.74% Key Features ICICI Prudential Dynamic Plan 45 .43% 40. It has the ability to move gradually into cash as the market gets over-valued.29% 39.00% 2003-04 2004-05 2005-06 2006-07 2007-08 Dynamic Plan S&P CNX Nifty Year Dynamic Plan S&P CNX Nifty 2003-04 81. Performance Record Date 30-Apr-09 30-Apr-08 29-Apr-06 30-Apr-04 31-Oct-03 Period Last 1 year Last 3 years Last 5 years Since Inception NAV (Rs) 79.96 10.35% 2007-08 14.
5 Crores : (a) 1% of applicable NAV if the amount sought to be redeemed or switched out is invested upto 6 months from the date of allotment.000/.00% 1.(plus in multiples of Re. 5 Crores and above : Nil Generally Within 3 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations Rs. 5 crores and Above : Nil (i) For investment of less than Rs. The AMC will have the discretion to completely or partially invest in any of the type of securities stated above so as to maximize the returns. 1000 each.(c) Nil if the amount sought to be redeemed or switched out is invested for more than 1 year from the date of allotment.50% 2. to the extent permitted under the Regulations. Systematic Investment Plan Systematic Withdrawal Plan Recurring Expenses Investment Mangmt. Additional Investment Entry Load Exit Load Redemption Cheques Issued Minimum Redemption Amt. Rs. 0 .100% = Debt & Money Market Instruments To generate capital appreciation by actively investing in equity / equity related securities.(ii)For investments of Rs. 1). 1000 + 5 post-dated cheques for a minimum of Rs. Exp.50% 46 . For defensive considerations. Growth & Dividend Dividend Reinvestment Rs. money market instruments.5% of applicable NAV if the amount sought to be redeemed or switched out is invested for more than 6 months but upto 1 year from the date of allotment.(b) 0. the Scheme may invest in debt. Quarterly: NA Minimum of Rs. Other Recurring Expenses Total 1.and Multiples thereof Investment Objective Options Default Option Application Amount Min.500/.25% of applicable NAV.(ii) For investment of Rs. 5 Crores : Entry load at 2.500/.and in multiples thereof (i) For investments of less than Rs.Type Investment Pattern Open-ended Equity fund 0 . 500/Monthly: Minimum Rs.5.100% = Equity & Equity related securities.
35% 2007-08 15.21% 12.60% 80.65% 23. and stocks are selected through rigorous fundamental bottom up analysis. and aims to benefit from the best long term investments that the market has to offer in the large-cap space.29% 39.00% 2003-04 2004-05 2005-06 2006-07 2007-08 Growth Plan S&P CNX Nifty Year Growth Plan S&P CNX Nifty Key Features 2003-04 2004-05 100.00% 40. Performance Record Date 30-Apr-09 30-Apr-08 29-Apr-06 30-Apr-04 9-July-98 Period Last 1 year Last 3 years Last 5 years Since Inception NAV (Rs) 111.89% 2005-06 82.17 95.00 Growth Plan Return 16.49 10.83% 67.69% 120. profitable and well known companies.81% Benchmark Index Return 26.15% 2006-07 10.00% 80.73% 18.00% 0.74% ICICI Prudential Growth Plan 47 .43% 40.10% 27. The investments are spread across sectors to ensure risk diversification.16 41.ICICI Prudential Growth Plan Investment Philosophy ICICI Prudential Growth Plan seeks to invest in large.00% 100.00% 60.77% 38.00% 20.98% 43.34 18.01% 22.85% 14.
5 Crores : (a) 1% of applicable NAV if the amount sought to be redeemed or switched out is invested upto 6 months from the date of allotment.5% of applicable NAV if the amount sought to be redeemed or switched out is invested for more than 6 months but upto 1 year from the date of allotment. Systematic Investment Plan Systematic Withdrawal Plan Recurring Expenses Investment Mangmt.and in multiples thereof (i) For investments of less than Rs. 5 Crores : Entry load at 2.000/.(b) 0.500/. Additional Investment Entry Load Exit Load Redemption Cheques Issued Minimum Redemption Amt. 1000 + 5 post-dated cheques for a minimum of Rs.and Multiples thereof Investment Objective Options Default Option Application Amount Min.500/.(ii) For investment of Rs. Money Market and Cash 5%.(c) Nil if the amount sought to be redeemed or switched out is invested for more than 1 year from the date of allotment.25% of applicable NAV. 5 Crores and above : Nil Generally Within 3 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations Rs. Other Recurring Expenses Total 1.(ii)For investments of Rs.25% 2. 1) Rs. 1000 each. Exp. To seek to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities Growth & Dividend Dividend Reinvestment Rs. Quarterly: NA Minimum of Rs.Type Investment Pattern Open-ended Equity Fund Equity & Equity related 95% & Debt.50% 48 .5.25% 1.(plus in multiples of Re. 5 crores and Above : Nil (i) For investment of less than Rs. 500/Monthly: Minimum Rs.
16% 31.43% 40. It has a lock-in period of 3 years.76 47.29% 39.ICICI Prudential Tax Plan Investment Philosophy ICICI Prudential Tax Plan is an open-ended equity linked saving scheme (ELSS).00% -20. long term style.98 87. which ensures that you compulsorily remain invested over this period.00% 120.00% 40.31 12.00% 100.00% 2003-04 2004-05 2005-06 2006-07 2007-08 Tax Plan S&P CNX Nifty 49 .56% 30.01% Benchmark Index Return 26.00% 80. Performance Date 30-Apr-09 30-Apr-08 29-Apr-06 30-Apr-04 19-Aug-2000 Period NAV (Rs) 104.73% 16. This 3 year lock-in gives the fund manager the flexibility to make strategic long term investments in a diversified portfolio comprising a mix of large and medium sized stocks.37% 54.00% 0.03 10.00 Tax Plan Return 19.00% 20. All these stocks are growth oriented and have a patient.00% 60.72% Last 1 year Last 3 years Last 5 years Since Inception 140. chosen after careful fundamental research.
(plus in multiples of Re. Other Recurring Expenses Total 1. 1) Rs.Key Features Type Investment Pattern ICICI Prudential Tax Plan Open-ended Equity Linked Saving Scheme Equity & Equity related instruments upto 90% & Debt. 500/Monthly: Minimum Rs.500/. 5 crores and Above : Nil Nil Generally Within 3 business day for Specified RBI Redemption Cheques Issued locations and additional 3 Business Days for NonRBI locations after lock-in period of 3 Years. Money Market and Cash upto 10%.500/. To seek to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities Growth & Dividend Investment Objective Default Option Application Amount Min.(ii)For investments of Rs.25% 2.50% Rs. Not available 51 . Exp. 500 or multiples thereof & 5 post-dated cheques for a minimum of Rs.25% of applicable NAV. 5 Crores : Entry load at 2.and in multiples thereof (i) For investments of less than Rs.25% 1. 500 for a block of 5 months in advance. Additional Investment Entry Load Exit Load Dividend Reinvestment Rs. Systematic Investment Plan Systematic Withdrawal Plan Recurring Expenses Investment Mangmt. Minimum Redemption Amt.
36% Benchmark Index Return 28.39% 26.64% Last 1 year Last 3 years Last 5 years Since Inception 52 .00 FMCG Fund Return 28.ICICI Prudential FMCG Fund Investment Philosophy ICICI Prudential FMCG Fund is an open-ended equity fund that predominantly invests in companies with a retail and consumption focus.96 38.08% 7. apparel. Within the broad definition of the sector.97% 28. retail distribution.31% 46. scrips are held across sub sectors like food. chosen to reflect the prospects of the FMCG sector.85 7. and consumables.14% 19. The fund adopts a bottom-up stock selection strategy to choose its investments. The portfolio is made up of less number of scrips.48 10.87% 38.74 18. Performance Date 30-Apr-08 30-Apr-07 29-Apr-05 30-Apr-03 31-Mar-99 Period NAV (Rs) 49.
500/.56% 2006-07 -0.and in multiples thereof Investment Objective Options Default Option Application Amount Min.(plus in multiples of Re.00% 100.5.140.00% 80.91% CNX FMCG 28.00% -40.00% 40.49% 111.00% 60. Additional Investment 53 .13% 2005-06 118. Growth & Dividend Dividend Reinvestment Rs.000/.96% 22.99% -19. Money Market and Cash 10%.26% 13. 1) Rs.00% -20.00% 0.00% 20. To seek to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of FMCG Companies.41% Key Features Type Investment Pattern ICICI Prudential FMCG Fund Open-ended FMCG Sectoral Fund Equity & Equity related in FMCG Companies 90% in & Debt.00% 2003-04 2004-05 2005-062006-07 2007-08 FMCG Fund CNX FMCG YEAR 2003-04 2004-05 62.99% FMCG Fund 55.00% 120.93% 200708 18.
Entry Load Exit Load (i) For investments of less than Rs. It invests across infrastructure sectors such as Cement. 1000 + 5 post-dated cheques for a minimum of Rs.25% of applicable NAV.50% Rs. 5 Crores : Entry load at 2. Quarterly: NA Minimum of Rs. 5 crores and Above : Nil Nil Generally Within 3 business day for Specified RBI Redemption Cheques Issued locations and additional 3 Business Days for NonRBI locations Minimum Redemption Amt. Banking etc. Construction. Power.00 Infrastructure Fund Return 51.(ii)For investments of Rs. Exp. Other Recurring Expenses Total 1.64% Performance 54 .25% 1. Telecom.34% Benchmark Index Return 26.500/.25% 2.and Multiples thereof ICICI Prudential Infrastructure Fund Investment Philosophy ICICI Prudential Infrastructure Fund is an open-ended equity fund focused on capturing the opportunity presented by the long term growth potential of the Indian Infrastructure sector.29% 33.13 19. 500/Monthly: Minimum Rs. Systematic Investment Plan Systematic Withdrawal Plan Recurring Expenses Investment Mangmt. 1000 each.62% 49.19 10. Date 30-Apr-08 30-Apr-07 31-Aug-05 Period Last 1 year Since Inception NAV (Rs) 29. Oil and Gas.
60. Additional Investment Entry Load Exit Load 55 .69% 2006-07 18.(ii)For investments of Rs. 500 per application & in multiples of Re. Minimum Rs.00% 10. Money Market Instruments and Call money 0% to 30%.35% 2007-08 52. Growth and Dividend Option.1).74% ICICI Prudential Infrastructure Fund Open-ended Equity Fund Equity and Equity related instruments in infrastructure sector 70% to 100% & Debt.00% 0.00% 50. 5 crores and Above : Nil (i) For investment of less than Rs.40% 42.25% of applicable NAV. 5 Crores : (a) 1% of applicable NAV if the amount sought to be redeemed or switched out is invested upto 6 months Investment Objective Options Default Option Application Amount Min. (i) For investments of less than Rs.17% 23.00% 2005-06 2006-07 2007-08 Infrastructure Fund S&P CNX Nifty Year Infrastructure Fund S&P CNX Nifty Key Features Type Investment Pattern 2005-06 48.00% 40. Dividend Reinvestment Rs. 5 Crores : Entry load at 2.1 thereafter.99% 12. To generate capital appreciation and income distribution to unit holders by investing predominantly in equity/equity related securities of the companies belong to the infrastructure industries and balance in debt securities and money market instruments including call money.00% 30.00% 20.5000 (plus in multiple of Re.
80% 5. of the highest credit quality. The intent is to protect the portfolio from risks of changes in value.50 16. without taking undue risks. The portfolio is entirely made up for short term debt securities and manages to keep a low.17% 6.94% Benchmark Index Return 7.37% 5.500/. short term instruments.50% Minimum of Rs.1 thereafter. Minimum Redemption Amt. 1000 each.94 Liquid Plan Return 7.93 18. Therefore it seeks to invest only in very liquid. Systematic Investment Plan Systematic Withdrawal Plan Recurring Expenses Investment Mangmt. Monthly: Minimum Rs.5% of applicable NAV if the amount sought to be redeemed or switched out is invested for more than 6 months but upto 1 year from the date of allotment. but steady rate of growth in NAV.25% 2.from the date of allotment.49% 56 . Minimum of Rs. Date 30-Apr-08 30-Apr-07 29-Apr-05 30-Apr-03 Period Last 1 year Last 3 years Last 5 years NAV (Rs) 19.(b) 0.(ii) For investment of Rs.74% 6. Exp.(c) Nil if the amount sought to be redeemed or switched out is invested for more than 1 year from the date of allotment.36 14. 1000 + 5 post-dated cheques for a minimum of Rs.25% 1.and Multiples thereof ICICI Prudential Liquid Plan Investment Philosophy ICICI Prudential Liquid Plan's objective is to enable idle cash to be deployed for very short periods of time. by focusing on earning interest income. Other Recurring Expenses Total 1. 5 Crores and above : Nil Generally Within 3 business day for Specified RBI Redemption Cheques Issued locations and additional 3 Business Days for NonRBI locations. 500 and in multiples of Re.
90% 7.24-Jun-98 Performance Since Inception 10.48% 4.78% 6.00% 2003-04 2004-05 2005-06 2006-07 2007-08 Liquid Plan Crisil Liquid Fund Index YEAR Liquid Plan Crisil Liquid 2003-04 4.00% 7.00% 0.75% 4.39% 200708 7. Dividend Reinvestment with weekly frequency. Growth.00% 4.00% 2. Growth Option : Rs. Monthly. 1 Options Default Option Application Amount 57 .00 7. Dividend Reinvestment (Daily.60% 4. b).17% 2005-06 6.00% 3. Dividend Option : Rs.00% 1. Weekly.50% Key Features Type Investment Pattern Investment Objective ICICI Prudential Liquid Plan Open-ended Liquid Income Fund Money Market upto 80% & Debt Instruments upto 20% To generate reasonable returns from low risk investments which provide high level of liquidity. Dividend Payout (Quarterly & Half Yearly).86% 2006-07 5.25% ---- 9.00% 6. a). Quarterly & Half Yearly).00% 5.34% 2004-05 4. 15000/-.00% 8.
b). 5000/-.01% 6.53 21. Next Rs.100 Cr .700 Cr . Exp. Growth Option : Rs.00%. Other Recurring Expenses Total First Rs.05% 5.25%. Rs.300 Cr . Additional Investment Entry Load Exit Load Redemption Cheques Issued Minimum Redemption Amt.1) Nil Nil Generally Within 1 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations.96% 5. Over Rs.50% . 1 lac e) Super Institutional Growth Option : Rs. The objective is to earn a rate of interest that commensurates with long term deployment in debt markets that generates income for investors.05% Benchmark Index Return 7. Same day Redemption Facility (refer to Key Information Memorandam). Systematic Investment Plan Systematic Withdrawal Plan Recurring Expenses Investment Mangmt. ICICI Prudential Income Plan Investment Philosophy ICICI Prudential Income Plan is a debt fund that invests entirely in both short and long term debt securities of the Government and corporate sector.1) a). 3 cr e) Super Institutional Growth Option : Rs. The fund intends to minimize risks from liquidity.2. credit and interest rates in a balanced manner.1. 1 lac d) Institutional Plus Option : Rs.1. 1 cr d) Institutional Plus Option : Rs.38 58 Income Plan Return 9.75%. Next Rs. Dividend Option : Rs. 5000/Not Available Not Available Min. 5000/-.lac c) Institutional Option : Rs.72 18. 1 lac (plus in multiples of Re. Date 30-Apr-08 30-Apr-07 29-Apr-05 30-Apr-03 Period Last 1 year Last 3 years Last 5 years NAV (Rs) 23.50%. c) Institutional Option : Rs. 5 crs (plus in multiples of Re.26% 4.300 Cr .58 19.2.
00 9.73% 2007-08 9. Rs.29% 3.and in multiples thereof Nil Investment Objective Options Default Option Application Amount Min.00% 8.00% 6.500/.00% 2.9-Jul-98 Performance Since Inception 10.000 (plus in multiples of Re.00% 0.000 for AEP Rs.20% ICICI Prudential Income Plan Open-ended Debt Fund Debt Securities upto 75% & Money Market & Cash upto 25% To generate income through investments in a basket of debt instruments of various maturities with a view to maximize income while maintaining the optimum balance of yield.93% 8.30% 2006-07 5.5.25% 0. Additional Investment Entry Load 59 . safety and liquidity.11% ---- 12.25.80% 2004-05 0.28% 3. Growth/Growth-AEP (Appreciation & Regular) and Dividend (Quarterly & Half Yearly) Dividend Reinvestment with Half Yearly frequency.05% 8. 1) / Rs.00% 10.00% 2003-04 2004-05 2005-06 2006-07 2007-08 Income Plan Crisil Composite Bond Fund Index YEAR Income Plan Crisil Composite Key Features Type Investment Pattern 2003-04 9.18% 2005-06 3.00% 4.
500/Monthly: Minimum Rs. 60 .Exit Load (i) For investment of less than or equal to Rs. It invests with the view of generating regular income from debt securities.(ii) For investment above Rs. it adds on a very limited equity exposure (max 15%) such that the risk-adjusted returns are better.and Multiples thereof ICICI Prudential Monthly Income Plan Investment Philosophy ICICI Prudential Monthly Income Plan is a conservatively managed fund that invests predominantly in debt securities. The intent is to provide the benefit of equity returns to the portfolio. without adding on significant risk. Other Recurring Expenses Total 1.(b) 0.75% 2.25% 0.5% of applicable NAV if the amount sought to be redeemed or switched out is invested for more than 6 months but upto 1 year from the date of allotment. To this basic portfolio. Exp.500/. 1000 + 5 post-dated cheques for a minimum of Rs. 1000 each. 10 Lakhs : (a) 1% of applicable NAV if the amount sought to be redeemed or switched out is invested upto 6 months from the date of allotment. Minimum of Rs.25% Rs. 10 Lakhs : Nil Generally Within 1 business day for Specified RBI Redemption Cheques Issued locations and additional 3 Business Days for NonRBI locations Minimum Redemption Amt.(c) Nil if the amount sought to be redeemed or switched out is invested for more than 1 year from the date of allotment. Systematic Investment Plan Systematic Withdrawal Plan Recurring Expenses Investment Mangmt. The portfolio is managed with the objective of stability of income.
28% 9. Quarterly.00% 18.49% 2005-06 14.55% 11. Equity and equity related securities 15%.33% 5.79% ---- 20.00% 16.23% 2006-07 6.37% 2004-05 7. money market instruments.47% 11.securitised debt and Cash upto 85%.47 12.00% 2003-04 2004-05 2005-06 2006-07 2007-08 Monthly Income Plan MIP Blended Index YEAR MIP MIP Blended Key Features Type Investment Pattern 2003-04 13.40% 10.00% 8.83 19.00% 4.00% 0.00% 12.00 Monthly Income Plan 9. Dividend (Monthly.Date 30-Apr-08 30-Apr-07 29-Apr-05 30-Apr-03 10-Nov-00 Performance Period Last 1 year Last 3 years Last 5 years Since Inception NAV (Rs) 20. To generate regular income through investments in fixed income securities and also to generate long term capital appreciation by investing a portion in equity and equity related instruments.21% 2.00% 6. Half Annually) and Cumulative.00% 2.09 15.26% 18.10% 10. Automatic Encashment Plan (AEP) also Investment Objective Options 61 .10% 10.00% 14.87 10.12% ICICI Prudential Monthly Income Plan Open-ended Income Fund with no assured returns Debt Securities.50% 2007-08 8.32% Benchmark Index Return 11.00% 10.23% 10.
and Multiples thereof Redemption Cheques Issued Minimum Redemption Amt. Other Recurring Expenses Total 1.000 + 5 postdated cheques for a minimum of Rs. 1. 500/Dividend & AEP Option .25% 62 .1).500/. 10 lakhs : Nil. Default Option Application Amount Min.500/. Rs. Generally Within 1 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations Rs.0.Monthly and Cumulative (Without AEP) Option . Dividend & AEP .000.000 (plus multiples of Re.25. Systematic Investment Plan Systematic Withdrawal Plan Recurring Expenses Investment Mangmt. Additional Investment Entry Load Exit Load Dividend Reinvestment (Monthly).00% 2.and in multiples thereof under each option Nil Any purchase transaction less than Or upto Rs. Minimum of Rs.50% if exit within 6 months.Monthly : Minimum Rs 1. Cumulative .offered.25% 1. Exp.000 each.Any purchase transaction of above Rs.10 lakhs . 5.Rs.
which have the potential to become blue chip companies of tomorrow.Think Investments. Also small portion of the funds is invested in medium capitalization companies. Thus the investment strategy is to 63 . which invests in companies with a medium to long-term view. Kotak Mutual Fund Products KOTAK 30 (Open Ended Equity Scheme) A large cap diversified scheme. Think Kotak. The fund has predominantly invested into blue chip large market capitalization companies. The scheme follows a bottom-up approach to stock selection.
30% 39.46% 40.26% 26.97% 60.take balanced exposure across sectors while maintaining less than 30% exposure to midcap stocks.00% 50. Performance as on April 30.76% Benchmark Index Return 26.00% 10.92 44. 1998) Kotak 30 S&P CNX Nifty • Investment Objective To generate capital appreciation from a portfolio equity related securities.00% 1Yr 3 Yr 5 Yr Since Allotment (Dec 29.00% 20.76% 20.00% 0. 64 .21% 51.00% 40. The portfolio will generally comprise of equity & equity related instruments of around 30 companies which may go upto 39 companies. 2008 Period Last 1 year Last 3 years Last 5 years Since Allotment Kotak 30* Return 32.00% 30. • Investment Pattern A portfolio of predominantly equity and equity related securities. Security of around 30 companies which may go upto 39 companies. • Benchmark Index S&P CNX Nifty.
1000/Systematic : Rs.e. which the Fund Manager believes would outperform others in the short 65 . 5000/Additional : Rs. with a flexible investing style. applications received through internet facility offered (www. 5 crores vi) Where the switch in is from any other scheme apart from point iv and v above to an Equity/Balanced/Equity FOF Scheme for investments equal to or more than Rs. It will invest in sectors. 5 crores • Estimated Recurring Expenses 2. 5 crores: 0. • Dividend Frenquency At the Discretion of Trustees • Cheques / DD to be drawn in favour of Kotak 30 • Payout Schedule Transaction day + 3 working days. 1000/.1000/• Minimum Redemption Size Rs.50% Where investments is made by Fund of Funds as defined under SEBI Regulations: Nil Where units are allotted upon reinvestment of Dividends: Nil Cases not covered above: Nil KOTAK Opportunities Open –Ended Growth Scheme Kotak Opportunities is a diversified equity scheme. Dividend ReInvestment. Where the purchase amount/switch in amount is equal to or more than Rs.50%.3 years.com). • Minimum Investment Initial : Rs. Dividend Payout.kotakmutual. • Investment Options Growth. • Exit Load For exit within 6 months from the date of allotment of units for investments of less than Rs. on application forms that are not routed through any distributor/agent/broker and submitted to AMC office or collection centre / investment service centre.or 100 units • Cut off for Transactions 3 PM • Entry Load No entry load shall be charged on: For "all direct" applications received by AMC i. 5 crores: 1% For exit after 6 months upto 1 year from the date of allotment of units for investments of less than Rs.• Investment Horizon 1 .
By virtue of its flexible investment pattern.00% 30.00% 1Yr 3 Yr Since Allotment (Sep 09.88% 35.46% 60.68% 35.72% 47.00% 20. Performance as on April 30.86% Benchmark Index Return 24. As markets evolve and grow. 2008 Period Last 1 year Last 3 years Since Inception Kotak Opportunity Return 40. Kotak Opportunities would endeavour to capture these opportunities to generate wealth for its investors.00% 10.52% 44. the fund is uniquely positioned to increase concentration sectors which look promising. 2004) Kotak Opportunity S&P CNX 500 66 . new opportunities for growth keep emerging.00% 40.00% 0.to medium-term.00% 50.
• Minimum Investment Initial : Rs. 5 crores • Exit Load For exit within 6 months from the date of allotment of units for investments of less than Rs. • Cut off for Transactions 3 PM • Entry Load No entry load shall be charged on: For "all direct" applications received by AMC i. 5000/Additional : Rs. • Investment Pattern • Benchmark Index Equity & Equity related securities : 65% . 1000/.KOTAK MID-CAP • Investment Objective To generate capital appreciation from a diversified portfolio of equity & equity related instruments.com). 5 crores: 1% For exit after 6 months upto 1 year from the date of allotment of units for investments of less than Rs.1000/• Minimum Redemption Size Rs. 5 crores: 0.50%. applications received through internet facility offered (www. on application forms that are not routed through any distributor/agent/broker and submitted to AMC office or collection centre / investment service centre. Where the purchase amount/switch in amount is equal to or more than Rs. Dividend ReInvestment. • Investment Options Growth.S & P CNX 500 95% Debt & Money Market Instruments : 5% 35% • Investment Horizon 1 . 5 crores Where the switch in is from any other scheme apart from point iv and v above to an Equity/Balanced/Equity FOF Scheme for investments equal to or more than Rs. Dividend Payout.kotakmutual.3 Years.1000/Systematic : Rs.50% Where investments is made by Fund of Funds as defined under SEBI Regulations: Nil Where units are allotted upon reinvestment of Dividends: Nil Cases not covered above: Nil • Estimated Recurring Expenses 2.or 100 units. • Dividend Frenquency At the Discretion of Trustees • Cheques / DD to be drawn in favour of Kotak Opportunities • Payout Schedule Transaction day + 3 working days 67 .e.
00% 30.61% 30.44% 34.00% 10.88% 29.97% 40.86% Benchmark CNX Mid-Cap Return 33. Performance as on April 30. 2008 Period Last 1 year Last 3 years Since Inception Kotak MID-CAP Return 7.00% 5.00% 1Yr 3Yr Since Allotment (Feb 24.00% 35.00% 15. with adequate flexibility to move within sectors. It endeavors to take advantage of the successive waves of opportunity provided by a transitioning economy.36% 27. The portfolio would be diversified across sectors.00% 25.00% 20.Open –Ended Equity Growth Scheme The key focus of the fund is to identify potential stocks that are likely and invest in midcap companies that will become tomorrow's large-caps.00% 0. 2005) KOTAK MID-CAP CNX MID-CAP 68 . The essence is to 'spot them young and watch them grow'.
95% Debt & Money Market instruments : 5% .or 100 units. Dividend ReInvestment. 5 crores • Exit Load For exit within 6 months from the date of allotment of units for investments of less than Rs. 5 crores: 0.50% Where investments is made by Fund of Funds as defined under SEBI Regulations: Nil Where units are allotted upon reinvestment of Dividends: Nil Cases not covered above: Nil • Benchmark Index CNX Midcap. 5000/Additional : Rs. Where the purchase amount/switch in amount is equal to or more than Rs.com). • Dividend Frenquency At the Discretion of Trustees • Cheques / DD to be drawn in favour of Kotak Mid-Cap • Payout Schedule Transaction day + 3 working days 69 .35% • Investment Horizon 1 .50%. applications received through internet facility offered (www. • Estimated Recurring Expenses 2.• Investment Objective To generate capital appreciation from a diversified portfolio of equity & equity related instruments. • Minimum Investment Initial : Rs.e.3 years.1000/Systematic : Rs. • Investment Pattern Equity & Equity related securities : 65% . 5 crores Where the switch in is from any other scheme apart from point iv and v above to an Equity/Balanced/Equity FOF Scheme for investments equal to or more than Rs. • Cut off for Transactions 3 PM • Entry Load No entry load shall be charged on: For "all direct" applications received by AMC i. 1000/. on application forms that are not routed through any distributor/agent/broker and submitted to AMC office or collection centre / investment service centre. 5 crores: 1% For exit after 6 months upto 1 year from the date of allotment of units for investments of less than Rs. • Investment Options Growth.kotakmutual.1000/• Minimum Redemption Size Rs. Dividend Payout.
00% 15.14% 26. 2005) KOTAK TAX SAVER S&P CNX 500 70 .00% 20. As it is a close ended architecture. the investor has to compulsorily lock in ones fund for 3 years.Saver Return 19.00% 25.00% 1Yr Since Allotment (Nov 23.00% 30.36% 35.88% 29.00% 10.KOTAK Tax-Saver (Open-Ended Equity Linked Savings Scheme) Kotak Tax saver offers the investor the dual advantage of potential capital appreciation as well as tax savings (as applicable)The portfolio offers a diversified mix across various sectors.00% 5.00% 0.27% Benchmark S&P CNX 500 Return 24. 2008 Period Last 1 year Since Inception Kotak Tax. Performance as on April 30.
1000/• Cut off for Transactions 3 PM • Entry Load No entry load shall be charged on: Where the purchase amount/switch in amount is equal to or more than Rs. 5 crores Where units are allotted upon reinvestment of Dividends. Systematic: Rs 500 and in multiples of 500. • Investment Pattern Equity & Equity related securities : 80% .20% • Investment Horizon 3 yrs & above • Investment Options Growth. • Minimum Investment Initial: Rs 500 and in mulitiples of 500. 1000 or all units if the amount is less than Rs. Cases not covered above:2.. 5 crores Where the switch in is from any other scheme apart from point iv and v above to an Equity/Balanced/Equity FOF Scheme for investments equal to or more than Rs. Dividend Payout.50%. • Benchmark Index S & P CNX 500 • Estimated Recurring Expenses 2. • Dividend Frenquency At the Discretion of Trustees • Cheques / DD to be drawn in favour of Kotak Tax-Saver • Payout Schedule Transaction day + 3 working days 71 . Dividend ReInvestment.25%.. as permitted from time to time. • Minimum Redemption Size Rs.• Investment Objective To generate capital appreciation from a diversified portfolio of equity & equity related securities and enable investors to avail the income tax rebate. • Exit Load Exit Load is not applicable for Kotak Tax Saver Scheme.100% Debt & Money Market instruments : 0% . Additional: Rs 500 and in mulitiples of 500.
46% 40.52% KOTAK MNC S&P CNX Nifty BSE Sensex 72 . strong brands.76% 17.00% 20.00% 1Yr 3Yr 5Yr Since Allotment (Apr 04.25% 18.00% 35.00% 25.KOTAK MNC Open Ended Equity Scheme A scheme diversified across sectors that invest in Multinational companies having business in India.26% BSE Sensex 24.30% 39.30% 17.00% 0.00% 15.34% 17.29% Benchmark S&P CNX Nifty Return 26. 2008 Period Last 1 year Last 3 year Last 5 year Since Inception 45. The scheme follows a bottom-up approach to stock selection and the investment strategy is to make aggressive allocation across select sectors. Performance as on April 30.55% 41. market leadership and strong parentage. 2000) Kotak MNC Return 1.00% 5.00% 40.88% 37.00% 10. The investment focus is on companies that have good governance.00% 30.04% 42.
• Minimum Investments Initial : Rs.1000/• Minimum Redemption Size Rs.40% • Investment Horizon More than 1 Year • Investment Options Dividend Payout. 1000/• Cut for Transactions 3 PM • Entry Load No entry load shall be charged on: For "all direct" applications received by AMC i. 5 crores • Exit Load For exit within 6 months from the date of allotment of units for investments of less than Rs. applications received through internet facility offered (www.com). Debt & Money Market securities : 0% . 5 crores: 0.50% Where investments is made by Fund of Funds as defined under SEBI Regulations: Nil Where units are allotted upon reinvestment of Dividends: Nil Cases not covered above: Nil • Estimated Recurring Expenses 2. Where the purchase amount/switch in amount is equal to or more than Rs.50%.100% BSE Sensex & S& P CNX Nifty. 5 crores Where the switch in is from any other scheme apart from point iv and v above to an Equity/Balanced/Equity FOF Scheme for investments equal to or more than Rs. • Dividend Frenquency At the Discretion of Trustees • Cheques / DD to be drawn in favour of Kotak MNC • Payout Schedule T+3 73 .1000/Systematic : Rs. Dividend Re-Investment. on application forms that are not routed through any distributor/agent/broker and submitted to AMC office or collection centre / investment service centre. 5000/Additional : Rs.e. • Investment Pattern • Benchmark Index Equity & Equity related securities : 60% .• Investment Objective To generate capital appreciation from a portfolio of predominantly equity and equity related securities issued by multinational companies. 5 crores: 1% For exit after 6 months upto 1 year from the date of allotment of units for investments of less than Rs.kotakmutual.
55% 6.50% NA 12.95% 5.15% 9. Performance as on April 30.77% 5. with a diversified portfolio.00% 4.00% 1Yr 3Yr 5Yr Since Allotment (Nov 25.96% 5. PSU and corporate bonds and offers two plans: Deposit Plan & Regular Plan.00% 8.18% 8.52% Crisil Composite Bond Index 7.00% 6.00% 10.65% Regular Plan 9. 2008 Period Last 1 year Last 3 year Last 5 year Since Inception Deposit Plan 7.KOTAK Bond Open Ended Debt Scheme The Kotak Bond is a pure debt scheme.96% 6. 1999) KOTAK BOND Deposit Plan Regular Plan Crisil Composite Bond Index 74 . comprising of government. Kotak Bond aims to generate reasonable returns at the same time reduce risk by investing in corporate bonds with credit rating not below AA.00% 0. Thus the fund has invested in a variety of debt and money market instruments of various maturities while maintaining an average duration of 12-18 months in current market situation.00% 2.29% 4.
1000/Systematic : Rs. Dividend Payout. • Cut off for Transactions 3 PM • Entry Load Nil • Payout Schedule Transaction day + 1 working day. • Exit Load For Kotak Deposit Bond Plan : For redemptions/switchouts within 6 months: 0. Bonus. • Dividend Frenquency Kotak Bond Deposit Plan: Quarterly 20th of Mar/Jun/Sep/Dec. 1000/• Minimum Redemption Size Rs. • Minimum Investment Initial: Kotak Bond Deposit: Rs.or 100 units. Kotak Bond Regular: Growth. • Cheques / DD to be drawn in favour of Kotak Bond / Short Term Plan • Estimated Recurring Expenses Kotak Bond Deposit : 2.. Dividend Payout. • Investment Horizon Kotak Bond Deposit & Regular Plan: 1 to 2 years. • Plan Kotak Bond Deposit & Regular Plan: Deposit.50%. 5000/Additional : Rs.• Investment Objective The Investment Objective of the scheme is to create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt markets. Kotak Bond Regular Plan: Quarterly 20th of Mar/Jun/Sep/Dec Kotak Bond Regular Plan: Annual 12th of March. Regular. Dividend Reinvestment. Kotak Bond Short Term Plan: Monthly .25%. 1000/. Kotak Bond Short Term Plan: 1 month & above. Dividend Reinvestment. Kotak Bond Short Term Plan: Growth & Dividend Reinvestment. Kotak Bond Regular: 1. 500000/Kotak Bond Short Term: Rs.12th of month. 5000/Kotak Bond Regular: Rs.50% For redemptions/switchouts after 6 months : Nil For Kotak Bond Regular Plan : Nil For Kotak Bond Short Term : Nil 75 . • Investment Options Kotak Bond Deposit: Growth.65%.. Kotak Bond Short Term Plan: 1.
00% 2.00% 7.00% 0.00% 1.56% 6.18% 5. this plan invests in a portfolio of securities with Weighted Average Maturity of less than four years.KOTAK Gilt (Open Ended Dedicated Gilt Scheme) Kotak Gilt is a scheme that allows the retail investor to invest in the otherwise wholesale government securities market. Performance as on April 30. Kotak Gilt scheme offers several plans to choose from: Savings Plan:Ideal if you are a short-term investor. Kotak Gilt invests in government bonds and treasury bills.40% 7.00% 3.00% 4. giving you a zero credit risk investment option. giving you the liquidity of a savings account with attractive returns.93% NA 9. 1998) KOTAK GILT SAVINGS ISEC SIBEX 76 .00% 6.83% 5.43% ISEC SIBEX Last 1 year Last 3 year Last 5 year Since Inception 8. It recognizes that for you.00% 1Yr 3Yr 5Yr Since Allotment (Dec 29.00% 5. safety is prime.00% 8. 2008 Period KOTAK GILT SAVINGS Return 7.93% 5.
• Investment Horizon Kotak Gilt Savings Plan: 6 months & above. 1000/. • Investment Pattern Kotak Gilt Savings Plan: Portfolio of securities will have a Weighted Average Maturity of upto 4 years.or 100 units • Cut off for Transactions 3 PM • Entry Load Nil • Exit Load Exit Load: 1. • Benchmark Index Kotak Gilt Savings Plan: I-Sec SiBex. • Cheques / DD to be drawn in favour of Kotak Gilt Savings / Kotak Gilt Investment. Kotak Gilt Investment Plan: I-Sec Composite Index • Estimated Recurring Expenses 1. • Dividend Frenquency Kotak Gilt Savings Plan: Monthly 12th of month / Annual Kotak Gilt Investment Plan: Quarterly .00% if redeemed within 1 year. 5000/Additional : Rs. Kotak Gilt Investment Plan: More than 1 year.65% • Minimum Investment Initial : Rs. • Plan Kotak Gilt Investment Plan : Regular. Kotak Gilt Investment Plan: here will be no restriction on maturity of securities. 1000/Systematic : Rs. Dividend Payout. 1000/• Minimum Redemption Size Rs. • Payout Schedule Transaction day + 1 working day.20th of Mar/Jun/Sep/Dec. Providend fund & Trust • Investment Options Growth. 77 . Dividend ReInvestment.• Investment Objective To generate risk free returns through investments in sovereign securities issued by the Central Govt and/or State Govts and/or reverse repose in such securities.
00% 6. It invests dynamically across asset classes. 2008 Period Last 1 year Last 3 year Since Inception KOTAK FLETI DEBT Return 8.00% 7.00% 0. The scheme has invested in top rated quality assets and has relatively lower risk/volatility profile as the mark to market component is relatively low.29% 5. maturity spectrum and across the yield curve in order to capitalize on trading opportunities.00% 1Yr 3Yr Since Allotment (Dec 06.96% 5.00% 5.26% 10.00% 3.KOTAK Flexi Debt Open Ended Debt Scheme Kotak Flexi Debt is an income scheme and seeks to maximize returns through active management of a portfolio of Debt and money market securities.00% 8. Performance as on April 30.59% 7. It is ideal for investors with medium term investment outlook who want their portfolio to be managed smartly.00% 4. 2004) KOTAK FLEXI DEBT CRISIL Composite Index 78 .00% 9.00% 1.37% CRISIL Composite Bond Index 7.47% 7.00% 2.
• Investment Pattern Debt instruments with maturity more than one year : 0% . 1000/• Plan Regular. • Minimum Redemption Size Rs.100 % • Investment Horizon 7 days. Kotak Income Plus (Open Ended Debt Scheme) 79 . • Minimum Investment • Benchmark Index CRISIL Composite Bond Fund Index. 10000000/Additional : Rs. 100000/. Institutional. • Cheques / DD to be drawn in favour of Initial: Kotak Flexi Debt Regular Plan : Kotak Flexi Debt Rs. • Estimated Recurring Expenses 2.under Daily Dividend Reinvestment option. Weekly .20th of Mar/Jun/Sep/Dec. Dividend Reinvestment & Growth Kotak Flexi Debt Institutional Plan: Dividend Reinvestment & Growth.95% D debt & money market instruments with maturity less than one year : 5% . 1000/Systematic : Rs.• Investment Objective To maximize returns through an active management of a portfolio of debt and money market securities. Kotak Flexi Debt Institutional Plan : Rs.10% • Payout Schedule Transaction day + 1 working day.Monday Quarterly .25% • Dividend Frenquency Daily. 1000/.& Rs. • Investment Options Kotak Flexi Debt Regular Plan: Dividend Payout.or 100 units • Cut off for Transactions 3 PM • Entry Load Nil • Exit Load if redeemed within 7 days from date of allotment of units : 0. 5000/.
00% 0.00% 8.100% in debt and money market instruments and 0 20% in equity related instruments. The scheme endeavors to provide safety of a debt fund with superior returns of equity product.31% 8.27% 9.00% 4.08 12.27% 8. To ensure safety of a debt fund the scheme invests in top rated debt instruments thereby ensuring good credit quality and liquidity.Kotak Income Plus invests 80% .00% 1Yr 3Yr Since Allotment (Dec 02. 2003) KOTAK INCOME PLUS Crisil MIP Blended Index • Investment Objective To enhance returns over a portfolio of debt instruments with a moderate exposure in equity and equity related instruments. 2008 Period Last 1 year Last 3 year Since Inception KOTAK INCOME PLUS Return 8.32% Crisil MIP Blended Index 11.23% 10.00% 6. • Investment Pattern • Benchmark Index 80 . Performance as on April 30.00% 2.00% 10.
1000/• Minimum Redemption Size Rs. A combination that in our opinion gives you a perfect balance between stability and growth.25% • Dividend Frenquency Monthly . 2008 81 . Dividend Payout. • Investment Horizon More thanes 1 year.12th of every month Quarterly .20th of Mar/Jun/Sep/Dec.25 lacs : Nil KOTAK Balance Open Ended Balanced Scheme Kotak Balance seeks to exploit the capital appreciation of equity and the stable returns of debt. 5000/Additional : Rs. • Exit Load For investments less than or equal to Rs. 25 Lacs: 1% if redeemed within 1 year. • Minimum Investment Initial : Rs. Dividend ReInvestment. For investment above Rs. the scheme aims to minimize the risk that arises out of even the most carefully picked equity stocks. 1000/.Debt & Money Market Instruments: 0% .100% Equity & Equity Related Securities: 0% . • Investment Options Growth. 1000/Systematic : Rs.or 100 units • Cut off for Transactions 3 PM • Entry Load Nil CRISIL MIP Blended Index. • Estimated Recurring Expenses 2. By investing a substantial amount in debt and money market instruments.20%. • Cheques / DD to be drawn in favour of Kotak Income Plus • Payout Schedule Transaction day + 1 working day. The scheme usually has an exposure of about 50% to 60% on equity and the rest in debt instruments. Performance as on April 30.
00% 5. 1999) • Investment Objective To achieve growth by investing in equity & equity related instruments.48% 30.00% 1Yr 3Y r KOTAK BALANCE Return 23. balanced with income generation by investing in debt & money market instruments.00% 20.00% 0.00% 30.00% 10. 82 .Period Last 1 year Last 3 year Last 5 year Since Inception 40.80% 36.98% 26.38% NA K OTAK B A LA NCE Cris il B alanced Fund Index 5Yr S inc e Allotm ent (Nov 25. • Investment Pattern Equity and Equity related securities : 51% 100% • Benchmark Index CRISIL Balanced Fund Index.00% 35.00% 25.69% Crisil Balanced Fund Index 20.91% 25.57% 21.00% 15.
Research Methodology 83 .50% • Dividend Frenquency Half Yearly .25th Mar/Sep. • Investment Options Dividend Payout & Dividend Re-Investment.Debt & Money Market instruments : 0% .49% • Investment Horizon More than 1year.50% Where investments is made by Fund of Funds as defined under SEBI Regulations: Nil Where units are allotted upon reinvestment of Dividends: Nil Cases not covered above: Nil • Estimated Recurring Expenses 2. Cases not covered above: 2. 1000 Systematic : 1000 • Minimum Redemption Size Rs. • Cheques / DD to be drawn in favour of Kotak Balance • Payout Schedule Transaction day + 3 working days Where the purchase amount/switch in amount is equal to or more than Rs. 5 crores Where units are allotted upon reinvestment of Dividends. 5 crores: 1% For exit after 6 months upto 1 year from the date of allotment of units for investments of less than Rs.or 100 units • Cut off for Transactions 3 PM • Entry Load No entry load shall be charged on: • Exit Load For exit within 6 months from the date of allotment of units for investments of less than Rs.25%. 5 crores Where the switch in is from any other scheme apart from point iv and v above to an Equity/Balanced/Equity FOF Scheme for investments equal to or more than Rs. 5 crores: 0. • Minimum Investment Initial : Rs.. 1000/.. 5000/Additional : Rs.
Objectives of the Study 84 .Under Methodology. we would study the following• Objective of the study • Assumptions taken • Hypothesis taken up • Research Framework • Methods used under this study • Collection of data Let us deal with them one by one.
• To give proper suggestion or recommendation to the company so that they can overcome from their weakness and can increase there number of clients and services.• To obtain a general understanding of the marketing strategies adopted by Mutual Fund Industry. • To study the response of clients. • To understand the problem faced by the existing clients and find ways to solve their queries at your level. • To study the market potential of ICICI Prudential Mutual Fund and Kotak Mutual Fund. Assumptions 85 . so as to make a comparative study and also to study the preferred scheme and there investment time and money.
The time frame of all marketing strategies and Public Relations procedures is fairly long and they are not implemented for short term selling only. 5. At times it is the name or the goodwill that sells rather than the actual product features. ICICI Prudential and KOTAK Mahindra is a renowned name in the mutual fund sector. We consider that Mutual Fund is the best option for investment to get maximum profit in long term period.1. 3. 4. Only young person are interested in investing their money in equity related scheme whereas others are interested in investing in Debt and Balanced Funds. 2. It is taken into consideration that there exists a positive correlation between the various strategies and schemes of the company. Hypothesis taken up 86 .
1. 3. The marketing strategies and public relations practices of ICICI Prudential Mutual Fund and KOTAK Mutual Fund have a direct bearing with the perception of the products or service in a consumer’s mind. 2. People like to invest money in ICICI PRUDENTIAL Mutual Fund rather than KOTAK Mutual Fund. People age around 20-30 invest their money in equity funds and for long term whereas people age more than 40 like to invest their money in Debt funds. 4. Research framework 87 . The risk in investing in equity related schemes and debt related schemes have same risk and both are affected by market fluctuation.
These alternatives are then turned into hypothesis. Normally in any case there can be a number of opportunities or possible problems and it is impractical to study each of them.The study involved an analysis of the marketing strategies and public relations practices of a leading newspaper daily. Methods used under this study 88 . Exploratory research is that part of the overall market research. As the thesis project tried to establish a relationship between the marketing strategies. Public relations practices and their consequences in terms of profitability the framework for the research was chosen to be EXPLORATORY in nature. Hypotheses are tentative and logical answers to questions that serve as guides for most research projects. The Case study method could not be applied to a very great extent due to the intricacies involved and its role was limited. Exploratory research in such a case is very useful to find out the most likely alternatives. The various means of going about or executing exploratory research are • Survey of knowledgeable persons • Case study This thesis report is largely based on Survey of knowledgeable persons. which is used to discover something new.
Although there was a proper formal questionnaire for a few top officials. SURVEY OF KNOWLEDGEABLE PERSON This pertains to the collection of data from a primary source. All persons who have any association. Collection of Data 89 . However the success of this technique depends majorly on: • Selection of the executive • His knowledge • His liberties and constraints pertaining to his position in the organizational hierarchy. • DEPTH INTERVIEW A larger part of the information was collected using this method. People in an organization are strategically placed at different levels in the hierarchy. These people may be either executions of the company or related with the product but not on the company rolls. the interview with executives of the company was a more flexible one. This helped in obtaining facts and data that would not have been obtained otherwise. with marketing of a product are reliable sources of information.1. whatsoever.
I have also used personal interview and telephone interview to know about the views of people about mutual fund. time and other resources at the disposal of the researcher. The technique of questionnaire for collecting data was very useful and clear I have written some questions and asked people to fill the questionnaire to know there perception and views about the AMCs and Mutual Fund. myself it was easy to meet a lot of number of employees of the organization from various departments. • By observation • Through personal interview • Through telephone interview • By questionnaire I have collected Primary data by using these techniques which helped me in making this project complete and reliable. PRIMARY DATA Lucky enough to be a part of Mahindra & Mahindra Finance. SECONDARY DATA 90 . I have collected data by using these techniques of collecting of data. By using observation method I observed people perception about the mutual fund products and about the AMCs.There are several way of collecting the appropriate data which after considerably in context of moneys costs. The data is collected of two type namely Primary data and Secondary data for this study.
Secondary data gives one an already built platform to work on. www. A large volume of basic research is reported in professional and trade journals and these sources are maintained in public libraries. While doing this project report on comparison study on ICICI Prudential and KOTAK Mutual Fund the secondary data was collected from: • INTERNET 1. HINDUSTAN TIMES RESULTS AND FINDINGS 91 .amfiindia.com 5.icicipruamc. they refer to the data which have already been collected and analyzed by someone else.google. company libraries and government documents. Truly speaking. this method is most convenient for students and is also the most economical. www. TIMES OF INDIA 4. BUSINESS TODAY 2.Secondary data means data that are already available i. www. Constraints of cost time and also overall research tools and resources make this method most dependable. www.mutualfund.com 4. newspapers.com 2.e. INDIA TODAY 3.com • MAGAZINES & NEWSPAPERS 1.com 3. www. Probably the quickest and most economical way of finding possible hypothesis to take advantage of others works and utilizes earlier efforts.kotakmutual.
which are most preferable. 3. 2. From the survey conducted on the types of funds selected for the purchase of mutual funds most of them are willing to invest in balanced funds. compared to others. It concluded that most of the customers are willing to invest in banks and others. 6.1. Customer Preference of following attributes in investing money 92 . Equity opportunities. 5. are the funds. Most of the customers prefer PRU ICICI Mutual Funds. tax savings. 4. From the survey conducted we came to know that most of the customers gave more importance to service compared to other factors. Majority of the customers were self-influenced to purchase the funds which get maximum returns. mainly for its brand name.
• Investment • Saving for future • Risk cover • Tax saving ATTRIBUTES INVESTMENT SAVING FOR FUTURE RISK COVER TAX SAVING TOTAL FIRST 72 156 204 168 600 SECOND 84 240 180 96 600 THIRD 216 120 96 168 600 FORTH 228 84 120 168 600 TOTAL 600 600 600 600 G.T.=2400 300 250 200 150 100 50 0 FIRST SECOND THIRD FORTH INVESTMENT SAVING FOR FUTURE RISK COVER TAX SAVING MAXIMUM INVESTMENT MADE BY THE AGE GROUP 93 .
AGE GROUP 20-30 30-40 40-50 80% 70% 60% 50% 40% 30% 20% 10% 0% AGE 20-30 EQUITY 70% 35% 10% MUTUAL FUND 25% 45% 20% DEBT 5% 20% 70% EQUITY MUTUAL FUND DEBT AGE 30-40 AGE 40-50 PREFERENCE OF THE AMC 94 .
AMC ICICI KOTAK SERVICE 45% 55% RETURN 57% 43% PRODUCT RANGE 52% 48% 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % S R IC E V E RTR EUN P OUT R DC RNE AG IC I IC K TK OA 95 .
WHICH INVESTMENT CARRIES LOW RISK? OPTION Risk involved EQUITY 12% MUTUAL FUND 31% DEBT 57% Response of Respondent 60% 50% 40% 30% 20% 10% 0% Share Market Mutual Fund Debt Response of Respondent From the above chart it is clear that most of the respondent believe that debt is less risky where as mutual fund have moderate risk but and equity market is more riskey. 96 .
CONCLUSION 97 .
CONSLUSION • The study which I conducted on the analysis of marketing strategy and public relations of ICICI PRUDENTIAL AND KOTAK MUTUAL FUND has been a great experience. The insight obtained has been helpful in understanding what happens in the industry. the entire report has been an effort to do just that. • Due to intense competition a wide range of services and products at the disposal of the customer. • The Indian Mutual Fund industry which was new to the country is now coming of age with the entry of new Asset Management Companies entering in the market and relaxed regulations providing a conductive environment for launching new products and services. Today these Asset Management Company are launching new products and schemes to attract the customers to increase the number of clients. • As the objective was to examine the marketing and public relations departments of the leading Mutual Fund AMCs. these AMCs are now rethinking their Marketing and Public Relations so as to increase their market shares. • It was very difficult to know about the customer preference about the Asset Management Company because there are a number of AMCs in the field and they are providing a large number of product range and schemes. some of them are 98 .
ICRA ONLINE MFR1 – Dec 2005.providing good service. • KOTAK Mutual Fund has a large amount to manage and has around 35 Schemes and has over 4 lakh investors and has branches in around 53 cities in India. LIPPER FUND AWARDS INDIA 2006 and OUTLOOK MONEY BEST WEALTH CREATOR DEBT 2003. CNBC India Mutual Fund of the year award 2004 and CRISIL best fund award 2003. • More stress on marketing campaign and sales promotion activities to enhance the swales and providing smart services all over the country. 99 . • ICICI Prudential and KOTAK Mutual Fund these have the brand name in managing the funds and providing good return to the customers and have a large number of mutual fund schemes and launching a new mutual fund scheme as demanding by the market to provide the good return. • Maximum returns through various Mutual Fund investment plan. • ICICI Prudential Mutual fund is a joint venture between ICICI Bank & Prudential Plc and it has easy accessibility due to strong distribution network consist many branches. • KOTAK Mutual Fund house won many awards like NDTV BUSINESS LEADERSHIP AWARD 2006. • KOTAK Mutual Fund has a product name KOTAK BOND REGULAR (GROWTH) which won the Lipper Fund Award India – April 2006. some are providing good returns and some are providing extra facilities.
LIMITATIONS 100 .
101 . they are not that forthcoming to reveal the truth intimately. Analysis is based on the information provided by the customers. As the survey is pertained to specific time period we can not say that these conclusions holds good to the future. As the respondents are very busy with their business.LIMITATIONS The study was done in Gurgaon and NCR only. purpose of saving etc. There is a lack of awareness of Mutual Fund Industry so it takes lot of time to convince people to invest. There is no proper assurance of getting right information from people because they hide the information due to the competition and other secondary source might not be updated. Most of the people give wrong information from their side such as wrong phone number. The response of the customer could be subjected to bias. their income group. so it may not reflect the total marketing conditions in the other cities.
RECOMMENDATION 102 .
Therefore the firm should concentrate on better services and interacting with the customers as well as investors. It is found out from the survey that most of the respondents give priority to the service and risk factors.RECOMMENDATION 1. Servicing features by the company such as redemption. The company has to maintain better long-term relationship with the customers. 6. Sales personnel have to be thoroughly trained so as to give better explanation before the prospective clients. once the customer is dissatisfied with service oriented. 5. 3. 7. there are chances he/she may shift to other companies. 2. Company should consider the present competition market and should act according to the customer needs while launching a new fund. 103 . but at the same time it is the responsibility of the company to cooperate with the distributors and their channels in serving the customers. No doubt ICICI signed more standard and safety needs. and commission disbursement have to be improved so as to maintain goodwill among the exiting clients. 4. Drastic measures have to be taken immediately for improvement of advertising all kind media.
The distributors can open their sub-outlets in important corners in and around the city for the people to know about the fund. 104 .They can gain more customers if they adopt the new and modern management techniques and methods in marketing customer care. 10. It is better if the company advertises and arranges the campaigns regarding the price and affordability as it is low.8.It is better. if the company create rural awareness of the ICICI mutual funds. 13.Concerned personnel should be arranged to receive the customers at the workshop so as to avoid the “no immediate response at workshop”. when compared to other companies. 11. 12. which increases the interest in the investors mind. 9. This will help more customers to know about the funds in remote corners of the country also. It is better for the company to advertise about the funds regarding its unique features in comparison with other similar funds. Some customers have complained about the lack of interaction and service. 14.Marketing campaigns should be organized in the areas distant from the cited. 15.
BIBLIOGRAPHY 105 .
com www.KOTHARI “RESEARCH METHODOLOGY K.R.com 106 .com www.mutualfundsindia.kotakmutual.ASHWATHAPA “HUMAN RESOURCES MANAGEMENT” STEPHEN ROBINS “ORGANIZATION BEHAVIOR” ICICI PRUDENTIAL MUTUAL FUND PRODUCT MODULE KOTAK MUTUAL FUND PRODUCT MODULE • • • • • • www.BIBLIOGRAPHY • • • • • • PHILIP KOTLER “MARKETING MANAGEMENT” C.amfiindia.sebi.icicipruamc.com www.google.com www.com www.
100000-500000 d. Female b. < 100000 c. Above 1000000 Phone No ………. Above 50 Occupation…………… Annual Gross Income a. 40-50 d. Stock b. Single b.. 30-40 c.. Married b. Other 107 . 500000-1000000 Address ……… ……… b. Where do you invest your money? a. Age Group a. Male Status a.Questionnaire Name…………. Mutual Funds c. ………. 20-30 Gender a. Bank d.
Tax benefits c. 3-5 years d. On Lump-sum basis Are you happy with your current returns? a. On regular basis b. High returns d. Customers are not educated about c. How do you invest your money? a. Less no of advisors 108 . Yes b. Mutual funds are not properly promoted b. Below 1 year Are you well aware about Mutual Funds? a. Safe investment What is the optimum investment period? a. New to the markets d. Fixed returns b. No If No Whya. No What benefits influence you to invest? a. 5-10 years b. 1-3 years c. Yes b.
Best-3 Attributes Service Returns Credibility b. Very risky d. Good-2 ICICI c. Service b. Debt c. Credibility As a customer you believe which carries more risk? a. support As a customer you believe which carries more value? a. Higher returns d. Average-1 SBI RELIANCE KOTAK 109 . No assured returns b. Govt. Equity b. Liquidity b. Low risk c. Professional management What do you think the main disadvantages of Mutual Funds? a. Mutual Funds Rate the following AMCs on the basis of following attributes? a. What are the main advantages of Mutual Funds over other products? a. Less awareness c.
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