A PROJECT REPORT ON

“INVESTMENT DECISION”
AT
ICICI BANK LTD, HYDERABAD

“Project Report Submitted In Partial Fulfillment of the Award of

The Degree of”
MASTER OF BUSINESS ADMINSTRATION (MBA)
Submitted by
G LAVANYA
(Reg.No.16UJ1E0051)

Under the Guidance of

Mrs .UMREZ,
Assistant Professor

DEPARTMENT OF BUSINESS ADMINISTRATION

MALLA REDDY ENGINEERING COLLEGE AND MANAGEMENT SCIENCES,
KISTAPUR (V) MEDCHAL (M) MEDCHAL (DIST) TELANGANA – 501 401
(2016 – 2018)

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,

HYDERABAD
INDEX

S.No: CHAPTER PAGE NO.

CHAPTER-1
THEORETICAL FRAME WORK
1
Scope of the Study
Objectives of the Study
Methodology of the Study
Limitations of the Study

Review of Literature

2 CHAPTER-II
INDUSTRY PROFILE &
COMPANY PROFILE

3 CHAPTER-III
DATA ANALYSIS AND
INTERPRETATION

SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
CHAPTER I
INTRODUCTION
1.1 INTRODUCTION TO INVESTMENTS

Investment analysis is an expansive term that envelops a wide range of parts of contributing. It
can incorporate breaking down past comes back to make forecasts about future returns,
choosing the kind of investment vehicle that is best for a financial specialist's needs or
assessing securities, for example, stocks and securities for valuation and investor particularity.

Investment analysis can help decide how a investment is probably going to perform and how
appropriate it is for a given speculator. It is vital to any solid portfolio the board system.
Speculators who are not open to doing their own investment examination can look for expert
exhortation from a money related counsel or other budgetary expert. Investment examination
can likewise include assessing past investment choices as far as the point of view that went
into making them, how the choice influenced a portfolio's performance and how missteps can
be respected and redressed. Enter factors in investment examination incorporate section cost,
expected time skyline and purposes behind settling on the choice at the time.

In leading a investment examination of a mutual fund, a speculator takes a gander at

components, for example, how the fund has performed contrasted with its benchmark. The
financial specialist can likewise analyze the fund's performance, cost proportion, the
executives dependability, area weighting, style and resource portion to comparative assets.
Investment objectives ought to dependably be viewed as while investigating a investment; one
size does not constantly fit all, and most astounding returns paying little respect to risk are not
generally the objective.
1.2 NEED AND IMPORTANCE OF STUDY

Basically, investment arranging includes recognizing your monetary objectives for the duration
of your life and organizing them. Investment arranging is critical in light of the fact that it
enables you to benefit as much as possible from your investments. Your prosperity as a financial
specialist relies upon your capacity to pick the correct investment alternatives. It relies upon your
prerequisites, your necessities and your objectives. The decision of the best investment choices
for you will rely upon your own circumstance and in addition the general market circumstance.

1.3 SCOPE OF THE STUDY

• You can only make an investment decision after analyzing the entire investment process,
which starts with a financial contribution and ends up meeting expectations.

• The investment decision rules allow you to formalize the process and specify the
requirements for accepting the project.

• You will make your decision only after you have been assured at all prices that
performance expectations are met.

• The study aims to understand the functioning of the Indian stock market.

• The location of the study is based on the responses of investors who manage the stock
market in twin cities.

• This study will help to understand the behavior and risk preferences of investors.
1.4 OBJECTIVE OF THE STUDY

The main objective of the project is to analyze various investment decisions.

The objective is to compare the returns obtained by various investment
decisions. To meet the different needs of investors, these options are also
compared on the basis of various parameters such as security, liquidity, risks,
barriers to entry / exit, etc.

Project work was undertaken to understand the investment sector. Project

work includes knowledge of investment decisions such as equity, bonds, gold
and mutual finance. All investment decisions are discussed with their types,
operations and returns.

1.5 METHODOLOGY
Equities, bonds, gold, mutual funds and life insurance were identified as the main types of
investment decisions.

The main project data on investment and various DECISIONS investments were collected
through interactions with the organization's employees, namely ICICI.

The secondary date of the investment project and various investments DECISIONS was
collected on websites, manuals andmagazines.

Main method: This method includes data collected during personal interaction with
authorized members of ICICI Ltd.

Secondary Method: The secondary data collection method includes:

The speakers delivered by the superintendents of the respective departments.
Brochures and materials provided by ICICI Ltd.
Data collected in NSE magazines, economic conditions, etc.
Various books on investments, the capital market and other related topics.

Second, average returns over a 14-year period are taken into account for the purpose of
comparing investment options. Then, a critical analysis is made on certain parameters such as
yields, security, liquidity, etc. Giving a weighting to the different types of investor needs, then
multiplying it by the same equities.
1.6 LIMITATIONS OF THE STUDY

The study was limited to five investment options.

Most of the information collected is secondary data.
The data is compared and analyzed based on the performance of the investment options of
the last 14 years.
In considering the returns of financial mutuals, only the best performing regimes were
analyzed.
It was very difficult to get the date for the returns generated by others and averages were
taken.
LITERATURE REVIEW
The Investment Choice identifies with the choice made by the financial specialists or the best
dimension the board as for the measure of assets to be sent in the investment openings.

Essentially, choosing the sort of benefits in which the assets will be contributed by the firm is
named as the investment choice. These benefits fall into two classes:

• Long Term Assets

• Short-Term Assets

The choice of putting assets in the long haul assets is known as Capital Planning. Therefore,
Capital Planning is the way toward choosing the advantage or a investment suggestion that will
yield returns over an extensive stretch.

The initial step associated with Capital Planning is to choose the advantage, in the case of
existing or new based on advantages that will be gotten from it later on.

The subsequent stage is to investigate the proposition's vulnerability and risk engaged with it.
Since the advantages are to be accumulated later on, the vulnerability is high regarding its
profits.

At last, the base rate of return is to be set against which the performance of the long haul
investment can be assessed.

The investment made in the present assets or transient assets is named as Working Capital
Administration. The working capital administration manages the administration of current assets
that are exceptionally fluid in nature.

The investment choice in momentary assets is significant for an association as a short-lived

survival is important for the long haul achievement. Through working capital administration, a
firm attempts to keep up an exchange off between the benefit and the liquidity.

In the event that a firm has a lacking working capital i.e. less assets put assets into the transient
assets, at that point the firm will be unable to satisfy its present liabilities and may result in
liquidation. Or then again in the event that the firm has more present assets than required, it can
adversy affect the productivity of the firm

• Thus, a firm should have an ideal working capital that is essential for the smooth working
of its everyday activities.
Need of good investment decisions

Investments are both essential and helpful with regards to exhibit day conditions. The
accompanying focuses have settled on Investment choice progressively essential.

 Getting ready for retirement

 Loan cost

 High rate of inflation

 Increment rate of tax collection

 Pay

Investment channels

1. Getting ready for retirement:

A colossal increment in working populace, legitimate plans for life expectancy and life span have
guaranteed the requirement for Investment choices. Investment choice have ends up noteworthy
as working individuals resign between the age 55 and 60. The future has expanded because of
enhanced living conditions, medicinal offices and so on. The income from business should, along
these lines, be determined in such a way, to the point that a bit ought to be secured as reserve
funds. Sparing from the from the current acquiring must be put resources into a legitimate way
with the goal that chief and salary subsequently will be satisfactory to meet consumption on
them after their retirement.

2. Loan fee:

The dimension of loan fees is another factor for a sound Investment plan. Loan fees may shift
between one Investments to other dangerous and non-hazardous Investments. They may likewise
vary because of various advantage plans offered by the Investments. These perspectives must be
considered before really apportioning any sum. A high rate of premium may not be the main
factor supporting the outlet for Investment. The speculator needs to incorporate into his portfolio
a few sorts on Investments. Strength of intrigue is as imperative as accepting a high rate of
intrigue.

3. High rate of inflation:

In the states of inflation, the costs will rise and buying intensity of rupee will decay. Because of
this, capital is dissolved each year to the degree of ascend in the swelling. The arrival on any
Investment ought to be viewed as positive, when such return repays the impact of expansion. For
keeping up buying power strength, speculators ought to painstakingly design and contribute their
assets by making investigation.

 The rate of expected return and inflation rate.

 The potential outcomes of anticipated gain or misfortune on their Investment.

 The restriction forced by close to home and family contemplations.

4. Increment rate of tax collection:

Tax collection is one of the pivotal factors in an individual's reserve funds. Duty arranging is a
basic piece of over allInvestment arranging. In the event that the Investment or disinvestment in
securities in made without thinking about the different arrangements of the expense laws, the
speculator may locate that the vast majority of his benefits have been dissolved by the
installment of duties. Legitimate arranging could prompt a significant increment in the measure
of assessment to be paid. Then again, great expense arranging and putting resources into duty
reserve funds plans not just diminishes the assessment payable by the speculator yet additionally
causes him to spare charges on different livelihoods. Different expense motivations offered by
the legislature and applicable arrangements of the Salary Assessment Act, the Riches Duty Act,
are vital to a financial specialist in arranging Investments.

5. Pay:
Pay is additionally a factor in settling on a sound Investment choice. The general increment in
business openings which offered ascend to pay level and roads for Investment, have lead to the
capacity and readiness of working populace to spare and contribute such investment funds.

6. Investment Channels:

The development and advancement of the nation prompting more noteworthy financial
movement has prompted the presentation of a huge range of Investments. Aside from setting
aside reserve funds in investment funds banks where premium is low, financial specialists have
the decision of an assortment of instruments. The inquiry to reason out is which is the most
appropriate channel? Which media will give a decent development and soundness of return? The
financial specialist in his decision of Investment should attempt and accomplish an appropriate
blend between high rate of return and dependability of come back to receive the rewards of both.
A portion of the instruments accessible are corporate stock, provident reserve, disaster
protection, settled stores in corporate division, Unit Trust Plans, etc.

Strategies for Taking Investment Choices

1. Sensitivity Examination:

In affectability examination, we break down the level of responsiveness of the reliant variable
(here income) for a given change in any of the needy factors (here deals and piece of the pie). As
such, affectability investigation is a technique in which the aftereffects of a choice are estimated,
if the real performance strays from the normal or accepted performance.

2. Scenario Investigation:

Situation investigation is another vital strategy for evaluating dangers engaged with aInvestment.
It includes evaluating future uncertainness related with aInvestment and their results. In this
strategy, diverse plausible situations are broke down and the related results are likewise decided.
3. Decision Tree Analysis:

Decision tree investigation is a standout amongst the best strategies for evaluating dangers
related in an undertaking. In this technique, a Decision tree is drawn for breaking down the
dangers related in aInvestment. A Decision tree is the portrayal of various plausible choices and
their likely results in a tree-like outline.

This strategy considers every likely result and settles on the basic leadership process simpler.

4. Break-Even Examination:

In a breakeven situation, the aggregate of every fixed expense or variable expenses in

aInvestment is equivalent to the aggregate income or come back from the undertaking. In this
manner, aInvestment can be said to have achieved its equal the initial investment when it doesn't
have any benefit or loss.

5. Risk-adjusted discount rate method:

The risk-adjusted discount rate method refers to the adjustment of risk in a valuation model that
is the NPV.

The risk-adjusted discount rate can be expressed as follows:

d = 1/1 + r + μ

Where, r = risk-free discount rate

μ = probability of risk

The previous formula can be used to calculate the current value adjusted for risk. For example, if
the expected five-year rate of return is equal to R5, the current value adjusted for risk can be
determined using the following formula.

Current Value (PV) = 1 / (1 + r + μ) 5 R5

6. Equivalence Analysis of Certainty:

The equivalent certainty analysis is also used to adjust the net present value, which allows the
selection or rejection of a project. This analysis is similar to the analysis of the risk-adjusted
discount rate. However, there is a difference between them. In the risk-adjusted discount rate
analysis, the discount rate is adjusted, while in a certainty equivalence analysis, the expected
return is adjusted.
5 Stages of InvestmentManagement Procedure

1-Setting the InvestmentDestinations:-

The first and the essential advance for Investment is that the financial specialist should set his
Investment targets. These Investment targets fluctuate from individual to individual. For instance
for an individual the goal might be to improve the rate of return.

2-Setting up InvestmentArrangement:-

Setting up Investment arrangement alludes to the assignment of advantage among the major
distributed resources in the capital market. The scope of distributed resource is from values,
obligation, settled pay securities, land, outside securities to monetary standards. Restriction of
condition and that of financial specialist ought to be remembered while building up the
Investment strategy.

3-Choosing the Portfolio Methodology:-

The portfolio methodology chose ought to be in agreement and in similarity with the
Investmentgoals and Investment strategies. On the off chance that these are not as per one
another, the entire Investment the executives procedure will crumple.

4-Choosing the Advantages:-

The advantages for be put in the portfolio must be chosen by the financial specialist. This is
where genuine production of portfolio will occur after the choice of benefits in which to
contribute by the administrator or financial specialist. That benefit will be chosen which will give
best return in accessible assets and which includes most minimal hazard. The benefits can be
shares, stocks, workmanship objects, securities, gold, property and so on.

5-Estimating and Assessing Performance:-

In this progression the performance of the portfolio will be estimated in contrast with the
sensible benchmark or the standard set by the financial specialist. Hazard and return will be
assessed by the chief. Estimating and assessing the portfolio will give the input to the financial
specialist and will thus assist the speculator with improving the quality and additionally the
performance of the arrangement of Investment.
 CHAPTER II

INDUSTRY PROFILE

&

COMPANY PROFILE
2.1 Industry Profile

According to the Reserve Bank of India (RBI), India's banking sector zone is well capitalized
and well regulated. Banking sector in the country are far better than above any country added in
the world. Studies on credit, market and liquidity risks studies suggest that Indian banks are
pretty much strong and accept the overall reduction well. The Indian banking industry has once
again witnessed the cycle of cutting-edge banking sector models such as payments and small
finance bank accounts. The new measures of RBI can continue to allow the restructuring of the
quiet industry of the banking. The payment agreement of the agenda in India acquired much of a
part of 25 countries with the Indian immediate payment service (IMPS) getting the sole
arrangement at the height of 5 in the index FAST Payments Innovation(FPII).
In August 2017, Moody's, the general competition evaluation office, said its angle with the
Indian banking sector agreement was stable. In November 2017, the Moody's general valuation
office upgraded four Indian banks.

the size of the market

• The Indian e-banking system includes 27 accessible zone banks, 26 private sector banks, 46
foreign banks, 56 delimited rural banks, 1,574 urban cooperative banks bankers and 93,913 rural
bankers in accession to host institutions. The rise of public sector banks has added more than 70
percent of the assets of the banking sector arrangement, thus repealing a similar allotment for its
clandestine peers. Banks are also favorable to customers to administer their adaptivephones.
• As the Indian Reserve Chest (RBI) allows for additional appearance like absolute armament
transfers within portfolios and chests, adaptable portfolios are accepted to become capable
players in the bankingecosystem.
• The unorganized retail area in India is hugely successful in adopting the payments approach, as
63% of retailers are absorbed into theapplication

CIFAR estimates that the acclaimed progress in the banking sector in India will be between 7%
and 8% during the 2017-2018 fiscal year.
Investments / growths
The main investments and growths in the banking industry in India include:
• The Government of India's recapitalization plan for the banks is accepted to advance the
recognition rate in the country to 15% and, as a result, GDP is expected to increase by 7% over
the course of the year. exercise 19.
• Public-sector banks line up with accession funds through strong institutional investments
(QIPs), supported by greater brokerage effect, Indian government's fund recapitalization plan,
and a breakthrough in absolute valuation from Moody's BrokerService.
• The RBI's amendment status allow lenders to make advances on Absolute Investment (real
estate) Funds (REITs) and and infrastructure investment trusts (InvITs) that do not exceed 10%
of unit capital of suchinstruments
Government Initiatives
• The Government of India plans to reduce by two percentage points the goods and services tax
(GST) on business-to-business (B2C) transactions made through the payment ofagendas.
• A new opening called "UdyamiMitra" was launched by (SIDBI) with the aim of ensuring the
availability of credits to (MSMEs) of thecountry.
• Mr. ArunJaitley, Minister of Finance, Government of India, Alien "The 2017 Banking
Regulation (Amendment) Bill", which will amend the 2017 Bankinging Amendment Order to
allow Reserve bank of India (RBI) advises banks for absolute tired assetissues

The government and regulator have agreed to take several steps to strengthen the banking sector
in India.

• Atwo-yearplantostrengthenbanksinaccessibleareasthroughreformsandbasicdrinksofRs
2.11 lakh crore ($ 32.5 billion) was highlighted by the Indian government which will accredit
these banks to play a role in a banking g agreement and a complement to the MSME sector. In
this regard, the Lok Sabha has accustomed recapitalization obligations account Rs 80,000 crore
($ 12.62 billion) for accessible zone banks, which will be accompanied by an alternation of
reforms, according to Mr. ArunJaitley, Minister of Finance, Government ofIndia.

• The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 has been anesthetized by
Rajya Sabha and is accepted to strengthen the bankingsector.
Road ahead
Increased infrastructure spending, faster project performance and continuation of reforms are
accepted to foster growth. All of these factors argue that India's banking zone is just as
authoritative for meaningful progress as the growing business would face the banks for their
acclaimed needs.
In addition, advances in technology have highlighted cases of adaptable banking and the
Internet. The banking zone puts more emphasis on the largest number of cases to their audience
and even advance their technology infrastructure, adjusting to improve the overall customer
knowledge as valid as the banks agree an aggressive advantage. Many banks, including HDFC,
ICICI and AXIS are exploring the advantage of soon barring credit and debit cards without
contact in the market. Cards, which use a near field communication (NFC)), accept customer
after agreeing to insert or swipe.

Mr. Bill Gates, co-founder of Microsoft Corp, said India will quickly move to a payment
reduction program in as little as seven years, based on adding transaction banks with additional
things like Absolute account transfers, payments accepted interface and Aadhaar.

PUBLIC SECTOR BANKS:

Presently, there are 27 Public Sector Banks in India including 19 Nationalized Banks (14+6 – 1
New Bank of India alloyed with PNB in 1993 + SBI which isn't a nationalized Bank + 5
Subsidiaries of SBI + IDBI + BharatiyaMahila Bank – acclimated underneath Parliament of
India Acts).

State Bank of India and its 5 Associate Banks, quiet asserted State Bank Group (The names of
the 5 Associate Banks are: State Bank of Travancore (SBT), State Bank of Patiala (SBP), State
Bank of Hyderabad (SBH), State Bank of Mysore (SBM) and State Bank of Bikaner and Jaipur
(SBBJ). The Union Cabinet acclimated the collusion of the 5 backups; and BharatiyaMahila
Bank Ltd with SBI on June 15, 2016, and the coalition is inadvancement.
Advancement Banks: These cover (IFCI) acclimated in 1948, (EXIM Bank) acclimated in 1982,
(NABARD) acclimated in 1982, and (SIDBI) acclimated on second April 1990.

PRIVATE SECTOR BANKS:

Private Banks and Foreign Banks: These cover Private Banks and Foreign Banks in India. As of
now, there are 23 banks working in India in this classification.

Area Central Co-Operative Banks in India: As on 01.04.2016, there are 371 District Central
Cooperative Banks in India with the best main part of these in the midst of in U.P. (50) and
Madhya Pradesh (38).

The RBI has reckless banks to set side by side half for anchored and 100% for unbound assets in
all cases alluded forinsolvency.

The legislature is satisfactory to propel Banking zone changes nearby the starting essential in
state-possessed loan specialists in the new year. Indian banks are saddled with awful advances
and the legislature has manufactured it a best precedence to lift banks out of the real non-
performing assets non-performing assets (NPA) emergency, and enliven loaning advance from a
25-year low.

Theadministrationreportedtheimbuementofanexceptional₹2.11lakhcrorefundamentalmore than
two years in open territory banks that are befuddled underneath best NPAs. Their NPAs
acknowledge included than two-and-a-cut up times to ₹7.33 lakh crore as of June 2017, from
₹2.75 lakh crore in March 2015.
Of the ₹2.11 lakh crore bundle, ₹1.35 lakh crore would be alloyed through
recapitalisationbonds. The Finance Ministry would anon publicize shapes of the recapitalisation
bonds and the mass to be closer view stacked amid the acknowledgedfinancial.

The capital implantation in banks isn't venturing out to be a basic action as it must be sponsored
by rope of changes including extending of bank sheets, goals of non-performing assets and HR
issues with the goal that they do recognizing and managable Banking in future.

"Change plan is most imperative which must be executed forward with capitalisation. A
proficient part of changes will show up with the goal that the honest to goodness borrowers don't
hurt and get bother free, charge based credit," Banking Services Secretary Rajiv Kumar told PTI.

Uncommon spotlight would be on miniaturized scale, little and normal endeavors (MSME),
Banking induction and occupation creation, he said. To encourage corporation in the open
territory Banking space, the Cabinet in August gave on a fundamental level endorsement for
PSBs to admix through an Alternative Mechanism (AM).

In this manner a month ago, the board under the chairmanship of the Minister of Finance and
Public Affairs ArunJaitley was set up to assess the recommendations of banks for endorsement
on a basic level to classify the mergerplans.

A location on the cleared proposition will be sent to the Cabinet like clockwork.

Two different individuals from the are Minister of Railways and Coal, PiyushGoyal, and Defense
Minister NirmalaSitharaman.
With regards to its dauntlessness to go with the starting MPAs, the administration has issued two
statutes - the 2017 Bank Regulation (Amendment) Ordinance and the 2017 Discontinuation and
Deferral Order (Amendment) - amid the year. .

The Banking Regulation (Amendment) Ordinance 2017 has been supplanted by the Reserve
Bank of India (RBI) Act to guide any bank to start bankruptcy procedures and give headings for
goals of focused onassets.

Concentrated Advisory Board of the RBI articular 12 yearly worn out instances of more than ¥
5000 crores, speaking to 25% (1.75 crs of gross lakh) net non-performing assets, for business
under the preoccupation and defalcation code.

In a investment to eager promoters chancing upon their organizations that are under the
bankruptcy methodology, the legislature has instituted an approval to boycott intentional lodging
defaulters as legitimate as those with NPA accounts from the bartering for equalization the
credits. The request, or, in other words be prompted by the Parliament, was gone for setting up
shielding measures keeping in mind the end goal to foresee the abuse or transmissible by the
circumscribing associations of the code of defalcation and crap (IBC). The corrections would be
material in situations where goals still should be affirmed. The progressions about bum decisive
promoters would not be acquainted with offering for their very own advantages under the ended
discount business to adjust behind advances. The RBI in its yearly extra vast defaulters show up
in August requested that the banks review 28 expansive records until 13 December or to send
them by 31 December to NCLT for the discount methodology. Of these, the banks should
authorize 23 records of indebtedness strategies.

The consequence of 2017 was the collusion of 5 Assemblies and BharatiyaMahila Bank with
State Bank of India (SBI), catapulting the best moneylender in the nation to a portion of the 50
biggest banks on the planet. With the merger, SBI bringing about the coalition of the 50 best
banks all inclusive in concurrence with the advantages. The wretched criminal from the protected
will have the capacity to 37 crore with an add plan of around 24,000 and around 59,000 ATMs
past the nation. The consolidated substance began with a fund base of in excess of 26 billion lakh
crores and a growth level of 18.50 billion lakh crore.. On the social part, the Ministry of Finance
has propelled the Pradhan MantriVayaVandanaYojana (PMVVY) to welcome government
managed savings amid maturity and to guarantee age-old 60-year-old and ensure individuals
matured 60 and over against a future decrease to their greatest advantage salary because of
unverifiable economicsituations.
 2.2 Company profile
ICICI Bank is India's greatest private section keep money with aggregate merged assetsRs.
9,860.43 billion (US$ 152.0 billion) at March 31, 2017 and advantage after evaluation of Rs.
98.01 billion (US$ 1.5 billion) for the year completed March 31, 2017. ICICI Bank starting at
now has an arrangement of 4,850 Branches and 14,164 ATM's transversely over India.

History

1955

The (ICICI) solidified at the movement of the World Bank, the Government of India and
operators of Indian industry, with the objective of profiting related establishment for giving
medium-term and whole deal adinvestment financing to Indian associations.
Mr.A.RamaswamiMudaliar picked as the essential Chairman of ICICI Limited.

ICICI ascends as the genuine wellspring of outside money credits to Indian industry. Other than
sponsoring from the World Bank and other multi-sidelong workplaces, ICICI was in like manner
among the fundamental Indian associations to raise holds from widespread markets.
ICICI Bank was at first progressed in 1994 by ICICI Limited, an Indian cash related association,
and was its totally guaranteed reinforcement. ICICI's shareholding in ICICI Bank was decreased
to 46% through an open offering of shares in India in money related 1998, an value offering as
ADRs recorded on the NYSE in budgetary 2000, ICICI Bank's acquirement of Bank of Madura
Limited in an all-stock amalgamation in budgetary 2001, and discretionary market bargains by
ICICI to institutional theorists in fiscal 2001 and monetary 2002. ICICI was molded in 1955 at
the action of the World Bank, the Government of India and agents of Indian industry. The vital
objective was to make a change fiscal establishment for giving medium-term and whole deal
adinvestment financing to Indian associations.

In the 1990s, ICICI changed its business from a change cash related establishment offering
simply adinvestmentfund to a widened fiscal organizations assemble offering a wide
combination of things and organizations, both direct and through different assistants and
branches like ICICI Bank. In 1999, ICICI transform into the essential Indian association and the
main bank or cash related foundation from non-Japan Asia to be recorded on theNYSE.

After idea of various corporate sorting out choices concerning the creating forceful circumstance
in the Indian keeping cash industry, and the move towards comprehensive setting aside extra
cash, the organizations of ICICI and ICICI Bank surrounded the view that the merger of ICICI
with ICICI Bank would be the perfect key choice for the two components, and would make the
perfect legal structure for the ICICI social affair's boundless dealing with a record framework.
The merger would enhance a motivating force for ICICI financial specialists through the united
substance's passage to ease funds, more significant open entryways for picking up price based
pay and the ability to appreciate the portions system and give trade dealing with a record
organizations. The merger would enhance a motivating force for ICICI Bank financial specialists
through a sweeping capital base and size of undertakings, reliable access to ICICI's strong
corporate associations grew over five decades, area into new business divides, higher bit of the
general business in various business sections, particularly charge based organizations, and access
to the huge capacity pool of ICICI and its assistants.

ICICI Group Companies

ICICI Group ICICI Prudential AMC & Trust
http://www.icicigroupcompanies.com http://www.icicipruamc.com

ICICI Prudential Life Insurance Company ICICI Investment

http://www.iciciprulife.com/public/default.ht http://www.iciciinvestment.com
m

ICICI Direct
ICICI Securities
http://www.icicidirect.com
http://www.icicisecurities.com

ICICI Foundation
ICICI Lombard General Insurance Company
http://www.icicifoundation.org
http://www.icicilombard.com

Disha Financial Counselling

http://www.icicifoundation.orgGovernment
Board Members Nominee Director
Mr. M. K. Ms. ChandaKochhar,
Sharma,ChairmanIndepende Managing Director & CEO
ntDirector Mr. N. S. Kannan,
Mr. UdayChitale ExecutiveDirector
Independent Director Ms. VishakhaMulye,
Mr. DileepChoksi Executive Director
Independent Director Mr. Vijay Chandok,
Ms. NeelamDhawan Executive Director
Independent Director Mr. AnupBagchi,
Mr. RadhakrishnanNair ExecutiveDirector
Independent Director
Mr. V. K. Sharma
IndependentDirector

Mr. LokRanjan
Awards - 2018

• ICICI Bank was picked as the champ in the 'Association' class of the MQH Best Practices
Competition made by IMC Chamber out of Commerce andIndustry.

• ICICI Bank was reported champ in the 'Most Innovative ATM Project' portrayal in India at
The Asset Digital Awards 2017. The Awards were framed by The Asset, a creation headquartered
in HongKong.

• ICICI Bank was reported the Best Bank in the 'Fintech Engagement' class at the Business
Today – KPMG Best Bank Awards 2018. The Awards were managed by the Business Today
magazine.

• ICICI Bank won the most unprecedented Awards at IBA Banking Technology Awards 2018; it
was the champ in four groupings and the primary sprinter up in two classes. The Awards were
managed by the Indian Banks' Association. The Bank was verbalized victor in following
requests: 'Best Use of Digital and Channels Technology', 'Best Payments Initiative', Best IT and
Cyber Security Risk Initiatives' and 'Most Innovative Project utilizing IT'. ICICI Bank was
pronounced sprinter up in following classes: 'Best Technology Bank of the Year' and 'Best Use of
Analytics for BusinessOutcome'.

• ICICI Bank won three disclosures of realness at the National Energy Conservation Awards
2017 for indicating obligation to centrality protection and capacity at its workplaces. The Bank
won the endorsing of legitimacy in the 'Spots of business' class for following structures: ICICI
Bank - Chandivli Tower in Mumbai; ICICI Bank - Empire Tower in Lower Parel, Mumbai and
ICICI Bank - Heritage Tower inAhmedabad.

• ICICI Bank was communicated the victor in India transversely in excess of three courses of
action in the 2018 Euromoney Private Banking and Wealth Management Survey. The Bank was
verbalized champ in 'Business Banking Capabilities', 'Indicate assets particular Services'and

52
'Creative Technology - Client Experience' classes. The regard was managed by Euromoney, a
general dispersal headquartered in London.

Respects - 2017

• ICICI Bank got a reference at the fifth entry of The Financial Inclusion Agenda managed by
CNBC-TV18 in the 'Impactful Financial Inclusion Initiatives' gameplan

• ICICI Bank clear as the 'Best Foreign Exchange Provider in India', by Global Finance
magazine as an essential piece of their rundown of 'The World's Best Foreign Exchange
Providers2017'

• ICICI Bank was announced champ in three classes at the BFSI Digital Innovation Awards
2017 shaped by the Indian Express Group, on October 7, 2017. The Bank has won these Awards
in 'Server farms', 'Web of Things (IoT)' and 'Breaking point'orders

Respects - 2016

• ICICI Bank wins the National Securities Depository Limited Top Performer Award for
opening the most vital number of demat accounts in2016

• ICICI Bank is permitted the 'Best Bond House'- Domestic at the Asset Triple A Country
Awards2016.

• ICICI Bank wins the regard in the 'Best Syndicated Loan' arrange at the Asset Triple A
Country Awards2016.

53
• ICICI Bank consolidates as extraordinary among other 10 relationship in the quick overview
of 'Best Companies for Women in India', as exhibited by an examination driven by Working
MotherMedia.

• ICICI Bank wins three Awards in the Safety Innovation portrayal for its 'iTravel Safe', 'Master
Switch' and 'Report a Safety Incident' applications at Occupation Safety and Health (OSH) India
2016 grandstand managed by UBM India Pvt.Ltd

• ICICI Bank has won the BFSI Digital Innovators Award 2016 for its Software Robotics
growth in the 'Creative Usage of Emerging Technology'gathering.

Respects - 2015

ICICI Bank

• Ms. ChandaKochhar joined into Fortune India's quick overview of Most Powerful Women
inBusiness.

• ICICI Bank won Awards in the game plans of 'Utilization of Technology for Fraud Prevention
and NPA Management' among huge banks and 'Evangelizing Technology Adoption' among
critical banks at the IDRBT Banking Technology Excellence Awards2015.

• Ms. ChandaKochhar was thought with the 2015 Asia Game ChangersAward.

• ICICI Bank won the regard of 'Top Borrowers in Asia - India' at 2015 Fixed Income Research
Poll in an outline facilitated by FinanceAsiamagazine.

• ICICI Bank won 'Best Private Sector Bank' under 'In general Business' game plan at the 'Dun
and Bradstreet Banking Awards2015'.

• Ms. ChandaKochhar fused into the rundown of 'Time 100 Most Influential People,2015'.

54
• Ms. ChandaKochhar consolidated into Forbes Asia Magazine's 2015 once-over of Asia's 50
Power Businesswomen and in the quick overview of CNBC TV18's basic 15 Indian Business
Icons.

• ICICI Bank won a sum of seven Awards at the 'National Award for Excellence in Energy
Management 2015' made by the Confederation out of Indian Industry(CII).

• Ms. ChandaKochhar arranged first in Fortune's quick overview of 'Most Powerful Women' in
AsiaPacific.

• ICICI Bank won the 'Best Foreign Exchange Bank' at FinanceAsia's 2015 Country Banking
AchievementAwards.

• Congratulations to Mr. Rakesh Jha for anchoring the best position in the request of 'Best CFO'
for banks, point by point by Institutional Investor, a US-based magazine. This outcome was
coordinated by an outline in which 625 offer side masters crosswise over in excess of 16 parts
mutual. The analysis is a touch of an activity by the magazine to pick the '2015 All Asia
Executive Team' rankings among money relatedfoundations.

• ICICI Bank has been declared the 'Best Retail Bank in India' by The Asian Banker. It has
additionally made champs in the courses of action of 'Best Internet Banking Initiative' and 'Best
Customer Risk Management Initiative' Awards given by The AsianBanker.

• ICICI Bank has been proclaimed as the rule sprinter up at Outlook Money Awards 2015 in the
gathering of 'BestBank'.

Honors - 2014

ICICI Bank

55
• Ms. ChandaKochhar got an uncommon Doctor of Laws from Carleton University, Canada.
The school gave this regard on Ms. Kochhar in certification of her starting work in the money
related part, sensible master in a period of monetary emergency and support for related business
hones.

• MsChandaKochhar included in The Telegraph (UK) rundown of '11 most basic ladies in fund'.

• ICICI Bank has been viewed as one of the 'Best Companies for Leaders' in India in an
examination composed by AonHewitt.
 CHAPTER III
DATA ANALYSIS
AND INTERPRETATION
PERFORMANCE ANALYSIS OF RETURNS
Equity returns at a glance
If we have a look at equity returns of the past 14 years it is like this:
SENSEX

YEAR INDIEX* ABSOLUTE PERCENTAGE

CHANGE CHANGE (%)
2003 3972 0 0
2004 3262 -710 -17.88
2005 3377 115 3.52
2006 5838 2461 72.88
2007 6602 764 13.08
2008 9397 2795 42.34
2009 13786 4389 46.70
2010 13908 122 0.88
2011 20323 6415 31.57
2012 19426.71 -896.29 -33.01
2013 21064 1637.29 08.42
2014 26508.21 5444.21 02.58
2015 25658.22 -849.99 -3.312
2016 26,626.46 968.24 3.773605496
2017 34,056.83 7,430.37 27.90596272
2018 36,825.10 2,768.27 8.128384233
40000

35000

30000

25000

20000

15000

10000

5000

0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Interpretation:

Stock market growth in India has been phenomenal in the current decade. Since the early
nineties, the stock market has experienced increased activity in terms of various decreases. Atthe
end of the 90's, the Indian market had huge sectors. More recently, real estate has seduced
investors. BSE SENSEX has captured all these events in the most judicious way. BSE SENSEX
helps identify the ups and downs of the Indian stock market. As the country's oldest index, it
provides time series data over a relatively long period (as of 2003). No wonder, BSE SENSEX
has become one of the most prominent brands in thecountry.
BSE100

YEAR INDEX ABSOLUTE PERCENTAGE

CHANGE CHANGE (%)
2003 2032 0 0
2004 1559 -477 -23.38
2005 1664 107 6.88
2006 3076 1412 84.74
2007 3580 506 16.46
2008 4953 1373 38.32
2009 6982 2029 40.96
2010 7026 44 0.65
2011 9132 2106 23.06
2012 9547.25 415.25 4.34
2013 9987.54 440.29 4.61
2014 10020.43 32.46 0.0325
2015 10147.51 127.08 1.2523
2016 8,386.69 -1,760.82 -17.3522371
2017 11,029.78 2,643.09 31.51529388
2018 11,377.58 347.80 3.153281389
12000

10000
8000

6000

4000

2000

0
2

2
2

2
0

0
0

0
0

1
0

1
3

8
5

6
Interpretation:
BSE also calculates a version of BSE-100 linked to the dollar and the
historical equities of this index have been available since its creation.
Shares of companies listed on the ESB Ltd. stock exchange suspended on the
last day of the month preceding the review date, securities that are opposed
to the Exchange's surveillance service and securities traded in the permitted
class
Rating History: The stock must have a listing history of at least 16 years at
BSE. An exception may be granted for a given period if the average free
float market capitalization of a newly listed company is among the top 100
companies listed on the BSE.
BSE200

YEAR INDEX* ABSOLUTE PERCENTAGE

CHANGE CHANGE (%)
2003 437 0 0
2004 340 -95 -21.96
2005 394 53 15.54
2006 766 372 94.41
2007 884 118 15.66
2008 1186 300 33.86
2009 1655 469 39.54
2010 1662 7 0.42
2011 2160 498 23.05
2012 2424.38 264.28 10.90
2013 2897.41 473.03 19.51
2014 3368.77 471.36 16.28
2015 3548.59 179.82 5.337
2016 3,511.05 -37.54 -1.05788496
2017 4,678.86 1,167.81 33.2609903
2018 4,768.52 89.66 1.916278752

6000

5000

4000

3000

2000

1000

0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Interpretation:

The actions of 200 companies selected from the specified and unspecified BSE lists were
considered for inclusion in the "S & P BSE 200" sample. The selection of companies was mainly
made on the basis of the current market capitalization of the listed scripts. In addition, corporate
market activity, reflected in sales volumes and certain financial factors, was taken into account for
the final selection of the 200 companies.

Although BSE SENSEX 200 was intended to effectively quantify price growths while effectively
reflecting market sensitivity, the rapid market growth required the compilation of a new series of
broadly based indices reflecting more effective market trends. to better represent the increase in
equities, market capitalization and new industrial groups.
BSE500

YEAR INDEX* ABSOLUTE PERCENTAGE

CHANGE CHANGE (%)
2003 1304 0 0
2004 1005 -299 -22.93
2005 1176 171 17.01
2006 2368 1192 101.20
2007 2779 413 17.46
2008 3795 1016 36.56
2009 5268 1473 38.86
2010 5295 25 0.47
2011 6883 1588 23.07
2012 7581.57 698.57 9.21
2013 7985.67 404.10 5.33
2014 10538.65 2553.02 3.19
2015 9985.56 -553.09 -5.248
2016 11,036.44 1,050.88 10.52399665
2017 15,002.73 3,966.29 35.9381286
2018 14,994.47 -8.26 -0.05505665
16000 2003
14000
2004
12000 2005
10000 2006
8000 2007
6000 2008
4000 2009
2000 2010
0 2011
2003 2006 2009 2012 2015 2018 2012
2013
2014
Interpretation:

The S & P BSE 500 Index represents almost 93% of the total market capitalization of BSE. BSE
500 covers the 500 main industries of the economy. In accordance with other S & P BSE indices,
the effective calculation method of 2018 has been transferred to the float method.

The base date was set after a detailed analysis of the relative volatility of the S & P BSE 500
index, the index closest to the S & P BSE 500 Index, over the last 10 years. The coefficient of
variation of S & P BSE 500 was one of the lowest in this period. As a result, it was chosen as the
base year and was chosen as the base date for its proximity to the current period. The base equity
was set at 1000 points in order to keep the index comparable to other similar indices.

Obligations come back at a glance

65
If we look at the average return that central government securities have given over a one-year
period, it is 10.57%. Now, if we look at the average return that government securities have given
over a one-year period, it's 10.57%.

ICICI comes back at a glance

"The ICICI system shines when everything else collapses," says an old adage. That's right, glitter
is back. During the 1950s, gold appreciated marginally. The next decade (1960-1970) increased
from $ 35 to $ 40, and between 1970 and 1980, the dramatic increase rose from $ 40 to $ 614, a
whopping 1407 percent. The trend of gold prices in India in recent years is given in the following
table.
YEAR PRICE ($)* ABSOLUTE PERCENTAGE
CHANGE CHANGE (%)
2003 272 - -
2004 278 6 2.20
2005 346 68 24.46
2006 414 68 19.65
2007 438 24 5.79
2008 517 79 18.03
2009 517 79 18.03
2010 636 119 23.01
2011 995 359 36.08
2012 1207.50 212.50 17.59
2013 1334.55 127.05 10.52
2014 1796.80 462.25 03.46
2015 2429.52 632.72 35.21
2016 2548.69 119.17 4.905084132
2017 2658.67 109.98 4.315157983
2018 2891.34 232.67 8.751368165
 3000

2500

2000

1500
INDEX
1000

500

0
2007 2009 2011 2013 2014 2016 2018

*Price indicates December end prices of that particular year 2017-2018

Mutual Finances return at a glance

EQUITY TAX SAVING NAV 1 YR 2 YR 3 YR

Magnum Tax Gain 47.98 109.65 93.68 111.58

PrincipalTaxSavings 74.60 91.20 59.30 73.70

IC IC I Tax Saver 138.50 104.60 83.60 91.60

140
120
100
80
60
40
20
0

NAV 1YR 2YR 3YR

MAGNUM TAX GAIN PRINCIPAL TAX GAIN

ICICI TAX SAVER
 EQUITY BALANCED
NAV 1 YR 2 YR 2 YR

Magnum Balanced
32.40 74.60 53.40 63.70

Kotak Balanced
23.80 71.10 49.10 52.80

ICICI Prudential
96.30 61.80 42.90 55.90

100

80

60

40

20

NAV 1YR 2YR 3YR

MAGNUM BALANCED KOTAK BALANCED

ICICI PRUDENCE
FINDINGS OF THE STUDY

Evaluating an investment option is never an attempt to negate the credentials of other

instruments in the block. The goal is to find ways to make the scene more convincing and more
rational. Mutual finance is an ideal investment for more than one reason. After numerous
inquiries and back-to-back discussions on the latest budget, investors have finally begun to ask
for the right investment instrument that really matches their needs. In the context of this
uncertainty, I am trying to measure expenditures. And the extent of the benefits of six investment
instruments in this part of the thoughts that trigger. Abandoning marketing tips, I extended my
analysis with a ranking scale of 12 as a financial adjustment exercise. Gradually, I identified and
categorized all the investment requirements into three big heads in order to grasp imperfections
in the procedure. And in a remarkable observation, mutual finance seems to act as a treat for all
investments and embodies the best of investments and largely addresses the security savings
component to adjust your incometolerance.

Primary needs
The basic requirements that an investor looks for in an investment are security, returns and
liquidity. After the US-66 fiasco, many people do not know whether to invest in government-
backed financial institutions. Most of them now transfer their money to FD banks, which they
say is one of the safest investment options. Many say that "I do not mind getting low returns, but
I should be sure to receivethem"

Secondary Needs

Ancillary requirements for an investment are the lack of a barrier to entry, tax efficiency and cash
flow efficiency. In order to encourage real estate or the housing sector in the country, many tax
serials have been given to this sector. A taxpayer may claim a deduction of an annual amount
equal to or less than 2.0 lakh on the interest payable on the finances borrowed for the purchase of
thehouseorfortheconstruction.Withregardtomutualfinance,althoughdividendsaretaxedat
the hands of the investor this year, there is another way to save tax: the growth option or
systematic withdrawal plans. In the case of a one-time capital gains tax, you have the choice
between paying a 20% tax with indexation allowances or a flat rate of 10%. In addition to good
taxes, mutual finance also benefits from the barriers of entry, which means that, unlike bonds,
people do not have to wait until a problem is open to invest in a mutual, but can enter when he
wants. One can think that with so many benefits, mutual funs require a huge investment, but one
can start investing in mutual finance with a nominal amount of Rs 500 / - in case of a systematic
investment plan.

Tertiary Needs
The stock market is one of the options to invest your money. Inventory is second to none for any
other investment tool. They are the best way to make money and stay ahead of inflation over
time. This is ideal if you have long-term investment goals. When you buy shares in a company
and they go bankrupt, they will not be the price you paid. These things happen, if you invest with
appropriate strategies, you will usually be winning.
For example, if someone had invested Rs.1 lakh in the stock market 22 years ago, it would have
been appreciated today at Rs.25 lakhs. Another classic example is Infosys shares: in the case of
investing 1,000 rand in June 1993, when he announced his IPO, his equity was worth more than
85 lakhs. During the same period, the debt generated an annual return of 12% while gold 3.4%
and real estate, although they gave 10% during this period, continued to bog down with valuation
issues, liquidity, proceeds of sale, etc. systematic investment plan (SIP) in mutual finance. This is
a feature of most mutual finance especially designed for those who are interested in creating
long-term wealth and planning a better future for themselves and their families. The SIP protocol
has three major advantages. They benefit from the average price in rupees and are convincing.
With the average price, you do not have to worry about the price of the unit, but you simply
invest regularly over a long period. This approach makes the odds in your favor in the longrun.

Indeed, the last two years have been bad for the mutual finance sector. However, as the saying
goes, "every dark cloud has a positive side", the same goes for the mutual finance sector. With
most AMC products offering innovative products to overcome the disadvantages of what they
used to do, the industry will certainly reach a new high. For a better understanding, after a
thorough analysis, our internal research team quantified the investment options, the numbers
being more eloquent than the words. With the help of the asset grid, one can easily make an
investment choice. A closer look at the figures below shows that investing in the mutual is an
advantage overothers.
Equity Bonds Gold Equity MF Debt MF
Primary 2.33 1.90 2.33 2.91 2.64
Needs
Secondary 2.42 1.33 1.65 2.65 2.32
Needs
Tertiary 1.50 2.46 1.27 2.20 2.30
Needs
Equity of 6.25 5.69 5.25 7.76 7.26
Specific
Instrument

Procedurefollowed

First, the main requirements have been classified into three broad categories: basic requirements,
ancillary requirements and portfolio adjustment. These were then classified into primary needs,
safety returns and cash. Secondary needs - tax efficiency, barriers to entry and cash flow
efficiency. Tertiary needs - long-term objectives and holding / liquidation price. Primary,
secondary and tertiary needs were assigned 40%, 30% and 30% respectively and individual
weights were also assigned to each of the sub-categories.

These ranks are multiplied by the respective weightings of each category, then their sum is
multiplied by the weights assigned to the main requirements. For security as a parameter,
compared to mutual finance, equity is the lowest ranked because of the risk involved. Most
scripts are market oriented. Anything or anyone can affect the market. On the other hand, bonds
rank highest because they are funded by the government. Contrast stocks are best placed for
returns as it is one of the best investment options for good returns. Bonds are the lowest rated
because of guaranteed returns promised by the government. Both pay about 8% - 9% of annual
returns.

In terms of liquidity, mutual finance and gold take first place, as they can be immediately
converted into cash when the investor so wishes. However, this is not the case with the real estate
account or PPF, because the first is not easy to eliminate and the last one has a blocking period of
15 years. Even if there is a barrier to entry, equity and mutual funds are ranked first. They can be
purchased at any time with minimal investment. But it's not the same with real estate because
you can not buy the land you want until it'ssold.

Given the fiscal angle of an investment, the most beneficial are the mutual finances of real estate
and equity. In case of real estate, a maximum amount of 1.5 lakhs is allowed in deduction of the
interest paid for the loan contracted for the purchase of a house or for its construction. Even in
case of mutual finance, if the units are held for more than one year, only 10% of the capital
appreciation is taxed and not at the peak rates. The FD Bank is the wrong choice if one looks for
the fiscal aspect because, on the one hand, the amount of interest paid is lower and, on the other
hand, the TDS is applicable. There are a few options that meet our long-term goals. The
systematic investment plan, a special feature of mutual finance, is the best option to meet your
long-term needs and achieve the same financial results in the asset grid. The same applies even
to real estate, because there is a great possibility of appreciation over time and all chances of
depreciation. The FD banks are the lowest ranked because capital appreciation is nothuge.
Investment Weight Equity Bonds Gold Equity Debt MF
Needs (%) MF
Safety 40 2 7 7 5 7
Returns 40 8 4 5 8 5
Liquidity 20 7 4 8 7 9
Entry barrier 60 9 5 5 8 7
Tax 20 3 6 3 7 8
Efficiency
Cash Flow 20 8 3 9 8 9
Effectiveness

73
Long Term 40 4 5 6 9 7
Goals
Holding / 60 5 9 3 7 8
Liquidation
price

Note: 9 – indicates highest positive equity on a parameter and 1 – indicates the lowest positive
equity on a parameter.
CONCLUSION

There are some investors who go through these areas: stocks, debt, land and gold. Each class of services has its
particularities. At any given time, some of these benefits will yield good returns, while others will be failures. Most
investors looking for unusual investments are decently trying to locate an isolated resource. Some look for the
following infosys, different purchases of land or gold. Many of them finance their investment funds in public
provident funds (PPF) or postal funds, others big as shared accounts with obligation. Not a lot of buying on all
classes of benefits or increasing within a class of benefits. In this vein, it has generally been said: "Do not put all
your locked-in investments in one place." The idea is to create a portfolio that incorporates many interests with the
ultimate goal of earning less.
 SUGGESTIONS

 When you buy an EQUITY, you acquire an equity in a company. Collectively, the
corporation is owned by all shareholders and each share represents a right to assetsand
profits.
 • The most common ways to divide the market are by firm size (measured by market
capitalization), by sector, and by type of growth. For example, investors may talkabout
large cap stocks or small cap stocks, energy or technology, or growth or equitystocks.
 • In the short term, market behavior is based on enthusiasm, fear, rumors and news. In the
long run, however, it is primarily corporate profits that determine whether an equity price
will rise, fall, orfall.
 • A good stock can go up even when the market goes down, while a stinker can godown
even when the market is booming.
 • Share prices are based on future earnings forecasts. A strong performance bodeswell,
but even the best companies canslip.
 • Because the equity of a stock depends on profits, a stock of $ 100 can be cheap if the
company's earnings prospects are high enough, while a stock of $ 2 can be expensive if
the earnings potential isweak.
 • To determine if a stock is overequityd or underequityd, investors compare their price to
income, earnings, cash flow and other financial criteria. It is also common to compare a
company's performance expectations to those of its industry - companies operating in
low-growth sectors are judged differently from those with strongersectors.
 • As a general rule, it is preferable to hold shares of several different industries. In this
way, if one sector of the economy goes down, you can rely onsomething.
BIBLIOGRAPHY

Text Books

Investment Analysis andPortfolioManagement - Prasanna Chandra

Investments - Sharpe &Alexander
Security Analysis andPortfolioManagement - Fischer &Jordan

Magazines
Business world
Business Today

Websites

www.bseindia.comwww.mutua
lfinancesindia.comwww.crisil.
comwww.moneycontrol.comw
ww.investopedia.comwww.lico
findia.comwww.icici.comwww
.icicibank.com