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“Study On Changing Scenario of Investment In Financial Market”






I take this opportunity to express my deep sense of gratitude towards all those who have been directly or indirectly helped me in the successful completion of the project. I would like to thank Mr Darshan Saraf, Branch Manager, support to this endeavor. I would also like to thank Dr.A.S.Sarkar, Director Mahatma Phule Institute of Management, Pune, and Prof.A.G.Jadhav, Prof.V.S.Date for their interest and valuable suggestion during the project for the successful completion of the project. Finally I would like to thank all who helped me to complete this project. for

allowing me to carryout my project and providing me constant



Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Topics Executive Summary Introduction Objective & Scope Industry Profile Company Profile Product Profile Research Methodology Data Analysis Observation & Findings Limitations Recommendations Conclusions Bibliography Annexure

Page No. 5-8 9-19 20-21 22-29 30-36 37-48 49-51 52-66 67-68 69-70 71-72 73-74 75-76 77-79





Title Duration COMPANY

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This is a project about trends of Investment which is modernizing or modifying day by day in financial market. It was because of changing the perception of people for investing their money in Investment Plans. OBJECTIVE The main objective behind the market research is analysis the market and find out suspects then convert into prospects and motivate or promote them to invest their money in modern investment plans instead of traditional plans. RESEARCH METHODOLOGY Research methodology which was use in market research qualitative and quantitative collected by personal techniques. with The primary data was the help of structured Interviews

questionnaire and Secondary data was collected by Internet, Journals, Magazines etc.


FINDINGS  Maximum people were not ready to investment because they

already invested their money in march due to tax benefit.  The second reason was due to political uncertainty stock market is highly volatile hence people were very scared for investment  Maximum people were interested in private sector for invest their money. LIMITATION  The unwillingness of the respondents to answer.  When I started my training that time Market scenario was in declined Stage.  Due to declined stage people were not interested to do investment.  Time Constraint. RECOMMENDATION  The creation of awareness about the need and importance of modern Investments is vital.  New product innovation, low money investment plans and better service is crucial for the company to increase its market share.


Change is very important and one whose goes which the changing environment always succeeds, that is what I have learnt from the study. The competition has grown too much in the Investment Sector with the opening of the sector. In this competition those who will survive who will take actions quickly and smartly. After Globalization plenty of Insurance & Investment related MNC’s came in India and developed their business. Due to globalization Competition increases day to day and every rival exploring new innovative ideas in investment plans for sustaining in Indian market. Today, Mutual Fund, Unit Linked Insurance Plan (ULIP) and Systematic Investment Plan (SIP) is most popular for Investment because they are fulfilling investors requirements as ULIP is a combination of Modern + Traditional Insurance Plans and which provides Tax benefit, Risk Cover and better growth to the people whereas traditional Insurance plans are not consider as better growth Plans. Therefore, We can realize that Investment scenario in market is totally change and every people want to invest their money in modern Investment plans those are more attractive and more flexible.





What is Investment….?? The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future which helps to your unplanned expenses.
What is the need of INVESTMENTS…..??

We need to invest to generate a specified sum of money for a specific goal in life and its make a provision for an uncertain future. One of the important reasons why we need to invest wisely is to meet the cost of Inflation. Inflation is the rate by which the cost of living increases. The cost of living is simply what it costs to buy the goods and services you need to live. Inflation causes money to lose value because it will not buy the same amount of a good or a service in the future as it does now or did in the past.
For example, if there was a 6% inflation rate for the next 20 years, a

Rs. 100 purchase today would cost Rs. 321 in 20 years. This is why it is important to consider inflation as a factor in any long-term investment strategy. Remember to look at an investment's 'real' rate of return, which is the return after inflation. The aim of investments should be to provide a return above the inflation rate to ensure that the investment does not decrease in value.


When to start Investing?

The sooner one starts investing the better. By investing early you allow your investments more time to grow, whereby the concept of compounding (as we shall see later) increases your income, by accumulating the principal and 7 the interest or dividend earned on it, year after year. The three golden rules for all investors are: • • • Invest early Invest regularly Invest for long term and not short term

What care should one take while investing? Before making any investment, one must ensure to: • • • • • • • • • • • • • obtain written documents explaining the investment read and understand such documents verify the legitimacy of the investment find out the costs and benefits associated with the investment assess the risk-return profile of the investment know the liquidity and safety aspects of the investment ascertain if it is appropriate for your specific goals compare these details with other investment opportunities available examine if it fits in with other investments you are considering deal only through an authorized intermediary see all clarifications about the intermediary and the investment explore the options available to you if something were to go. and then, if satisfied, make the investment.

(These are called the Twelve Important Steps to Investing)


What is meant by Interest? When we borrow money, we are expected to pay for using it – this is known as Interest. Interest is an amount charged to the borrower for the privilege of using the lender’s money. Interest is usually calculated as a percentage of the principal balance (the amount of money borrowed). The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan. What factors determine interest rates? When we talk of interest rates, there are different types of interest rates rates that banks offer to their depositors, rates that they lend to their borrowers, the rate at which the Government borrows in the 8 Bond/Government Securities market, rates offered to investors in small savings schemes like NSC, PPF, rates at which companies issue fixed deposits etc. The factors which govern these interest rates are mostly economy related and are commonly referred to as macroeconomic factors. Some of these factors are: • • • • Demand for money Level of Government borrowings Supply of money Inflation rate

The Reserve Bank of India and the Government policies which determine some of the variables mentioned above


What are various options available for investment? One may invest in: • • Physical assets like real estate, gold/jewellery, commodities etc. and/or Financial assets such as fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension fund etc. or securities market related instruments like shares, bonds, debentures etc.

Investment plan in the past scenario:
    

Bank Fixed Deposits Saving account Post office

Kisan vikas patra

Bank Fixed Deposits: Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit Account, a certain sum of money is deposited in the bank for a specified time period with a fixed rate of interest. The rate of interest for Bank Fixed Deposits depends on the maturity period. It is higher in case of longer maturity period. There is great flexibility in maturity period and it ranges from 7days to 10 years. The interest is compounded annually and is added to the principal amount. Savings Bank Account: 1

Savings Bank Account is often the first banking product people use, which offers low interest (4%-5% p.a.), making them only marginally better than fixed deposits. Post Office Savings: Post Office Monthly Income Scheme is a low risk saving instrument, which can be availed through any post office. It provides an interest rate of 8% per annum, which is paid monthly. Minimum amount, which can be invested, is Rs. 1,000/- and additional investment in multiples of 1,000/-. Maximum amount is Rs. 3,00,000/(if Single) or Rs. 6,00,000/- (if held Jointly) during a year. It has a maturity period of 6 years. A bonus of 10% is paid at the time of maturity. Premature withdrawal is permitted if deposit is more than one year old. A deduction of 5% is levied from the principal amount if withdrawn prematurely; the 10% bonus is also denied.

National Savings Certificates:

National Savings Certificates (NSC) are certificates issued by Department of post, Government of India and are available at all post office counters in the country. It is a long term safe savings option for the investor. The scheme combines growth in money with reductions in tax liability as per the provisions of the Income Tax Act, 1961. The duration of a NSC scheme is 6 years.


Kisan Vikas Patra: Kisan Vikas Patra (KVP) is a saving instrument that provides interest income similar to bonds. Amount invested in Kisan Vikas Patra doubles on maturity after 8 years & 7 months. Kisan Vikas Patra can be purchased by the following:
• • • •

An adult in his own name, or on behalf of a minor, A minor, A Trust, Two adults jointly.

Kisan Vikas Patra are available in the denominations of Rs 100, Rs 500, Rs 1000, Rs 5000, Rs. 10,000 & Rs. 50,000. There is no maximum limit on purchase of KVPs. Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledgee and when ordered by a court of law.

Investment plan in the present scenario:
• • • •

Shares (NSE & BSE) Mutual Fund’s Insurance ULIP

National Stock Exchange (NSE): The National Stock Exchange of India Limited was created on the basis of the report of the High Powered Study Group on Establishment


of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions to provide access to investors from all across the country on an equal footing. In 1992, NSE was incorporated as a tax-paying company unlike other stock exchanges in the country. In April 1993, NSE was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956 and it commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment were started in June 2000.

In October 1995, National Stock Exchange became the largest stock exchange in the country. NSE launched S&P CNX Nifty in April 1996. NSE is one of the largest interactive VSAT based stock exchanges in the world. Presently, it supports more than 3000 VSATs. The NSE- network is the largest private wide area network in India and the first extended C- Band VSAT network in the world.

Bombay Stock Exchange (BSE): Bombay Stock Exchange Limited is the oldest stock exchange in Asia. Popularly known as BSE it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in India to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation)Act,1956. Bombay Stock Exchange played a pivotal role in the development of


the Indian capital market and its index, SENSEX, is tracked worldwide. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives.

Mutual Funds in India: Mutual Fund is an instrument of investing money. Nowadays, bank rates have fallen down and are generally below the inflation rate. Therefore, keeping large amounts of money in bank is not a wise option, as in real terms the value of money decreases over a period of time. One of the options is to invest the money in stock market. But a common investor is not informed and competent enough to understand the intricacies of stock market. This is where mutual funds come to the rescue. A mutual fund is a group of investors operating through a fund manager to purchase a diverse portfolio of stocks or bonds. Mutual funds are highly cost efficient and very easy to invest in. By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. Also, one doesn't have to figure out which stocks or bonds to buy. But the biggest advantage of mutual funds is diversification.

Diversification means spreading out money across many different types of investments. When one investment is down another might be up. Diversification of investment holdings reduces the risk tremendously.



Life is a roller coaster ride and is full of twists and turns. You cannot take anything for granted in life. Insurance policies are a safeguard against the uncertainties of life. Insurance is system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance policy helps in not only mitigating risks but also provides a financial cushion against adverse financial burdens suffered. Insurance policies cover the risk of life as well as other assets and valuables such as home, automobiles, jewelry et al. On the basis of the risk they cover, insurance policies can be classified into two categories.

Unit Linked Insurance Plans (ULIP): Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time.

ULIP provides multiple benefits to the consumer. The benefits include:

Life protection


• • • • • • • • • • • •

Investment and Savings Flexibility Adjustable Life Cover Investment Options Transparency Options to take additional cover against Death due to accident Disability Critical Illness Surgeries Liquidity Tax planning




Objective: The primary objective was to analysis the market and find out the potential customer and motivate or promote them to invest their money in modern Investment plan rather than traditional Investment plan.

The secondary objective were:  To do the comparative analysis of the two options and to bring forth, thus to the potential customer.  To create awareness among the customer  To create marketing awareness of the Investment product and also identify the potential for this product.  To analyze the marketing strategy of the competitors  To analyze Investment pattern.

Search Method: The method used for research was descriptive method. It involved collection of primary data and Secondary data. As far as project was concerned primary data was obtained by market analysis through field.

Contact Method:  Telephone Interview  Personal Interview





Institutional investment The rapid growth of stock markets in the world, to a significant extent could be explained by the surge in the institutional investors consisting of pension funds, insurance companies and mutual funds. During the period 1995 and 2005, the assets under management of the institutional investors doubled from US$21 trillion to US$53 trillion. A large number of institutional investors are moving away from the home bias investing in outside world. Emerging markets with higher economic growth and rapidly growing financial markets became major centers of destination for the investments of institutional investors. For instance in the US, in 1994, pension funds invested 41% of their portfolio in domestic equity and 7% in international equities, where as by 2005 that share rose to 48% in domestic equities and 15% in international equities. The portfolio allocation to bond markets during the same period reduced from 42% to 32%. Emerging markets received sizeable portion of the investments. In the US, the dedicated emerging markets mutual funds rose from about US$27 bn in 2000 to US$ 230 bn in 2006.

International listings On the back of the liberalization of cross border financial flows, companies in several countries are seeking listing in international exchanges to garner benefits from international investors as also widen their investor base. The number of foreign companies listed in


the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to 636 in 2006. The number of foreign companies listed on the NYSE has also risen rapidly in the 1990s. There is a keen competition across the world’s leading stock exchanges to promote international listing and gain greater influence. In the recent period, the US experienced a slowdown in the listing of foreign companies. The decline is attributed to stringent corporate governance norms that were applied following the corporate abuses found in the beginning of the decade. The US is now examining in greater detail measures to gain the prominence once it enjoyed in the international listings. The Alternative Investment Market of London Stock Exchange attracted huge interest from SMEs from a large number of countries.

Emerging markets as an investment destination Liberalization of capital flows led to surge in international investment into emerging economies finding value on the back of huge prospects for growth. The flow of net Foreign Direct Investment (FDI) into developing countries increased from US$ 170 bn in 1998 to US$ 325 bn in 2006 and net portfolio equity flows increased from US$6 bn to US$94 bn during the same period. Net debt flows during this period are rather subdued with net debt flows from official creditors turning negative. Net portfolio equity flows to China between the year 2000 and 2006 rose from US$6.9 bn to US$32 bn and in India from US$2.3 bn to US$8.7 bn. Other emerging markets such as Brazil, Mexico, South Africa, Thailand and Russia too, showed surge in the net portfolio equity flows. Emerging markets showed significant growth in stock prices making them attractive investment destinations though issues of valuations are beginning to become a concern now.


Currently, looking at the five most important asset classes - real estate, equities, bonds, commodities, and art (including collectibles) Admittedly, some assets have performed better than others, but in general every sort of asset has risen in price, and this is true everywhere in the world. In the early phases of all previous investment booms, investors failed to recognize that the "rules of the game" had changed and continued to play the asset class that had been the leader in the previous investment mania. In the 1980s, every increase in gold and silver prices was perceived to be the beginning of a new bull market in precious metals (after silver prices collapsed in January 1980, prices doubled three times between 1980 and 1990 - all within a downtrend), while investors maintained a very skeptical view of bonds. In the early 1990s, investors failed to recognize the emergence of a high-tech sector uptrend, although, as explained above, high-tech stocks were already performing extremely well between 1990 and 1995. Global investors continued to believe in the merits of Asian stocks right to the end and actually stepped up their buying in early 1997! Similarly, in the current asset inflation, investors have continued to focus on the high-tech bull market and have largely missed out on the huge increase in price of commodities, and of Indian, Latin American, and Russian equities. At the end of each investment mania, investors believed in some sort of "excess liquidity" that would drive the object of the speculation forever higher. After globalization many of MNC’s came here and set up their business in India. Therefore, The competition would also increase and every investment company provides better or adorable plans to the potential customer and they also retain their existing customer through providing better services.


ROLE OF INVESTMENT IN OUR LIFE: Risk and uncertainties are part of life’s and they will never stop like accident, illness, theft and other uncertainties they will happen in life suddenly and we can not manage our expenses according to them. We will invest our money for make a solution of big future expenses that can we never change like higher education, marriage of our children and we can also make easy of our future by taking pension plans.

INVESTMENT AS INSURANCE: Investment assures your uncertain future and provides you secure life. Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Today, Insurance Company promotes ULIP as investment product which provides you good growth, tax benefit, risk cover and short term plans. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in ULIP goes towards providing for the risk cover, while the rest is used for saving ULIP is a unique investment avenue that delivers sound returns in addition to protection.


Investment as “Tax Planning”: Long term Investment serves as an excellent tax saving mechanism too. The Government of India has offered tax incentives to long term investment products in order to facilitate the flow of funds into productive assets. Under Section 88C and section 10(10D) of Income Tax Act 1961, an individual is entitled to a rebate of 20 per cent on the annual premium payable on his/her life of his/her children or adult children. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. This rebate is can be availed up to a maximum of Rs. 48000.

INVESTMENT AS FUTURE SOLUTION: Investment work as solution of your uncertain future. Its also helps to fulfill your future needs and demands. One of the important reasons why one needs to invest wisely is to meet the cost of Inflation. Inflation causes money to lose value because it will not buy the same amount of a good or a service in the future as it does now or did in the past Investment. Therefore, we can say that Investment Of our money helps in future expenses.


There are two types of Investment plans are exist. Most of the products offered by Investment companies are developed and structured around these “basic” plans and are usually an extension or a combination of these plans. So, what are these plans and how do they differ from each other? Short Term Investment Plan: Broadly speaking, savings bank account, money market/liquid funds and fixed deposits with banks may be considered as short-term financial investment options: Savings Bank Account: Saving Bank Account is often the first banking product people use, which offers low interest (4%-5% p.a.), making them only marginally better than fixed deposits. Money Market or Liquid Funds: Money Market or Liquid Funds are a specialized form of mutual funds that invest in extremely short-term fixed income instruments and thereby provide easy liquidity. Unlike most mutual funds, money market funds are primarily oriented towards protecting your capital and then, aim to maximize returns. Money market funds usually yield better returns than savings accounts, but lower than bank fixed deposits.


Long Term Investment Plans: Public Provident Fund: A long term savings instrument with a maturity of 15 years and interest payable at 8% per annum compounded annually. A PPF account can be opened through a nationalized bank at anytime during the year and is open all through the year for depositing money. Tax benefits can be availed for the amount invested and interest accrued is tax-free. A withdrawal is permissible every year from the seventh financial year of the date of opening of the account and the amount of withdrawal will be limited to 50% of the balance at credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower the amount of loan if any. Company Fixed Deposits: These are short-term (six months) to medium-term (three to five years) borrowings by companies at a fixed rate of interest which is payable monthly, quarterly, semi10 annually or annually. They can also be cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan period. The rate of interest varies between 6-9% per annum for company FDs. The interest received is after deduction of taxes. Bonds: It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital. The central or state government, corporations and similar institutions sell bonds. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date, called the Maturity Date. 2




About the organization:

ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion (US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008. ICICI Bank is second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalization. The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).



To make ICICI Bank dominant life and built on trust by worldclass people and service This we hope to achieve by :  Understanding the needs of customers and offering them superior products and service.  Leveraging technology to service customers quickly, efficiently and conveniently.  Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policy holders.  Providing an enabling environment to faster growth and learning for our employees.  And above all building transparency in all our dealing The success of the company will be founded in its unflinching to 5 cores values-integrity, customer first boundary less, ownership and passion. Each of the values describes what the company stands for, the qualities of our people and the way we work. We do believe that we are on the threshold of an exciting new opportunity, were we can play significant role in redefine and reshaping the sector. Given the quality of our percentage and the commitment of our team, there is no limit to our growth.



ICICI Bank is a professionally managed entity that was created post the merger of the erstwhile ICICI Limited with its subsidiary ICICI Bank. Due to the merger with its parent, the shareholding of ICICI Bank has changed significantly and foreign investors now have over 73% stake in the bank. Government controlled entities own over 15% stake in ICICI Bank, while other Indian entities hold the rest of the stake. This means that there is no defined promoters’ entity for ICICI Bank and the functioning of the bank is in the hands of a professional team of managers.

Objects of the issue: The objects of the issue are to provide capital for  Executing the bank’s business strategy, including growth in its retail portfolio.  International Expansion,  Investment in its insurance subsidiaries, and  Other general corporate purposes.

Introduction of ICICI Bank



Overview :-

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional


investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank.


The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.



The ICICI Bank advantages: The salient points that you make like to keep in mind before choosing on your strategic partnership.

Strong retail focus: After the merger with parent ICICI, ICICI Bank is focusing strongly on the retail segment in order to fuel its growth for the future.


The bank has been very aggressive in this segment, so much so that retail assets now make up nearly 48% of total advances of the bank. ICICI Bank's market share in incremental retail loans disbursed is close to 30%. This indicates the focus the bank has evinced in the retail segment. ICICI Bank has also significantly pared its exposure to the corporate segment in order to increase its presence in the retail segment. Wide reach: ICICI Bank has been on an expansion spree in the last year and in this period it has seen its branch size increase to around 540 branches. The bank is also leveraging on a large ATM network in order to augment its reach further. At the end of FY03, the bank had an ATM network of over 1,500 ATMs spread across the country. Due to the aggressive branch and ATM network expansion, the bank has been able to grow its retail assets significantly. Going forward, the bank is in a good position to tap the retail market due to its extended reach. Benefits from the Securitization Act: The erstwhile ICICI Limited had a significant amount of NPAs in its books. The passing of the Securitization Act is likely to go a long way in helping ICICI Bank recovering dues from defaulters. The bank has already formed an Asset Recovery Company (ARC), in partnership with entities like SBI and IDBI in order to take advantage of the provisions of the act. Restructuring operations: In an effort to reduce its interest costs ICICI Bank undertook an exercise to reduce its parent ICICI's high cost liabilities. In this effort, 3

the bank has met with significant success. ICICI Bank has paid back a large part of ICICI's long-term high cost borrowings and in its place replace it with low cost deposits. This has helped the bank to improve its interest spread to 1.5% (FY03) from 1.2% in FY02. Going forward with further restructuring of borrowings and increased contribution from retail deposits, ICICI Bank is likely to witness further improvement in its spreads.

Today, if you check with any corporate distributor that tide up with us, they will uniformly confirm that our distribution support is the best in the industry. They feel these are the most important points for the success of banc assurance model. We would be glad to discuss more details with your team. Should you have any further clarifications needed we also invite your team to interact with our actuarial, underwriting, client servicing and IT teams to see for themselves the high quality systems processes and skills the company has.

ICICI Bank Provides Various Types of Investments Plans are:

Mutual Funds pool money of various investors to purchase a wide variety of securities while pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the field. Returns generated are distributed to the Investors. At ICICI Bank NRI services, 3

we will help you determine which types of funds you need to meet your investment goals. This may include the following types of funds:

1. Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes etc. 2. Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc. 3. Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child education Schemes etc.

We help you identify an appropriate mix of Mutual Fund schemes for your portfolio using asset allocation strategies. You can invest in various schemes of multiple mutual funds with decent performance record.

Why Invest in Mutual Fund?
Professional Money Management and Research: Mutual funds are managed by professional fund managers who regularly monitor market trends and economic trends for taking investment decisions. They also have dedicated research professionals working with them who make an in depth study of the investment option to take an informed decision. Risk Diversification: Diversification reduces risk contained in a portfolio by spreading it. It is about not putting all your eggs in one basket. As mutual funds have huge corpuses to invest in, one can be part of a large and welldiversified portfolio with very little investment.


Convenience: With features like dematerialized account statements, easy subscription and redemption processes, availability of NAVs and performance details through journals, newspapers and updates and lot more; Mutual Funds are sure a convenient way of investing. Liquidity: One of the greatest advantages of Mutual Fund investment is liquidity. Open-ended funds provide option to redeem on demand, which is extremely beneficial especially during rising or falling Markets. Reduction in Costs: Mutual funds have a pool of money that they have to invest. So they are often involved in buying and selling of large amounts of securities that will cost much lower than when you invest on your own. Tax Advantages: Investment in mutual funds also enjoys several tax advantages. Dividends from Mutual Funds are tax-free in the hands of the investor (This however depends upon changes in Finance Act). Also, capital gain accrued from mutual funds investments for period of over one year is treated as long term capital appreciation and is taxed at a lower rate of 10% without benefit of indexation or 20% with benefit of indexation. Other Advantages:


Indian Mutual fund industry also presents several other benefits to the investor like: transparency - as funds have to make full disclosure of investments on a periodic basis, flexibility in terms of needs based choices, very well regulated by SEBI with very strict compliance requirements to investor friendly norms.

Where to Invest? ICICI Bank has tied up with several Mutual Funds so as to provide you the convenience of Varied Investment.

You have a choice to invest with the top 17 AMCs in India offering around 300 schemes

AMC offered • Alliance Mutual Fund • JM Financial • Reliance • Birla • Cholamandalam Mutual Fund • Kotak mahindra • Standard Chartered • DSP Merrill lynch • Deutsche • HSBC • Principal • Sundram • ING Vysya • Prudential • Tata

• Franklin Templeton • HDFC

Why invest with us? NRI Services offers investment in Mutual Funds through Multiple Channels. With ICICI Bank, you can invest in Mutual Funds through following channels India Sales Team ETC Team (Email, Telephone & Chat Team)



Wise Invest


Being away from India doesn't mean you have to compromise the safety and security of your loved ones. In fact, your savings from your time overseas can be easily canalized to meet your family's needs now and in the future. So, whether its your dream to retire in your hometown; to secure funds for your children's education; or to build assets, ICICI Prudential has a range of solutions that can be customized to meet your needs. Today, In Life Insurance ULIP(Unit linked Insurance Plan) is most popular because it provides good wealth creation and risk cover.


Broadly, insurance plans can be distinctly divided into ULIP (Unit Linked Insurance Plans) and traditional plans. A brief detail of both segments: Unit Linked Insurance Product ULIPs have gained high acceptance due to attractive features they offer. These include: 1. Flexibility 1. Flexibility to choose Sum Assured. 2. Flexibility to choose premium amount. 3. Option to change level of Premium /Sum Assured even after the plan has started. 4. Flexibility to change asset allocation by switching between funds. 2. Transparency 1. Charges in the plan & net amount invested are known to the customer. 2. Convenience of tracking one’s investment performance on a daily basis. 3. Liquidity 1. Option to withdraw money after few years (comfort required in case of exigency). 2. Low minimum tenure. 3. Partial / Systematic withdrawal allowed 4. Fund Options 1. A choice of funds (ranging from equity, debt, cash or a combination). 2. Option to choose your fund mix based on desired asset allocation

There are some products of ULIP:


• • •

Investment and Saving Plans Retirement Plans Child Plans

Investment and Saving Plans: Endowment policies are a good way of putting aside your savings today for a future goal - whether it's to buy a house in India or fund your entrepreneurial vision. Our savings-oriented policies are designed to make your savings grow and have them available to you at the end of a fixed number of years or through the term of the plan.

• • • •

Lifetime Gold Lifetime Plus Lifetime Super Life Link Super

Retirement Plans: Many of us picture ourselves enjoying the fruits of our labor after retirement - going on a dream vacation, or helping our child's career take wing. Financing all this will depend on our personal savings and investments, so its important to save for the future from today. Our retirement plans are designed to help you systematically save, so that you can enjoy all the things you have dreamed of when you retire. • • • • • Life Link Super pension Life Time Super Pension Life Time stage Pension Forever Life Premier Life Pension 4

Child Plans: As a responsible parent, you want to ensure a hassle-free, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. SmartKid Education Plans are designed to provide flexibility and to safeguard your child's future education and lifestyle, taking all possibilities into account. SmartKid Child Plans has a bouquet of three products which can help you secure your child's

• • •

SmartKid New Unit-Linked Regular Premium SmartKid New Unit-Linked Single Premium SmartKid Regular Premium

COMPARISON BETWEEN ULIP AND MUTUAL FUNDS ULIP Most plan offer more than three free funds switches every year There is no tax implication when switching between funds Top-ups come with 1% charge Good only for long term investing because of high initial charge Life cover is compulsory You need to contribute regularly for the long term MUTUAL FUND Switching is costly. Exit and entry load and can be as high as 3-4% Profit from equity funds taxed at 10% debt profits added to income Top-ups carry 2.25% charge Good for short term and long term investing time frame Pure investing and life cover is optional Investor not under any compulsion to invest year after year

There are various funds in mutual fund and ULIP:1. Maximiser: High risk funds and these funds in 100% share market related and it provides 25%-35% earning.


2. Balancer :

Moderate risk funds and these funds in 40% Share Market 60% Share Market 15%-20% Earning

3. Protector: Low risk funds and these funds in Govt. Bonds 5%-8% Earning 4. Preserver: It also low risk funds and provides low earning too. Call Money Market 4%-6% Earning

Best Performing ULIPs:
Name ICICI Maximiser KOTAK Growth HDFC Growth AVIVA Easy Life BIRLA Enhance (up to September 1,2007, figure in %) Return 29.80 25.88 22.85 22.26 13.38




Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is compare various Investment products available in the market with the existing players in the market and the impact of entry of private players in the market, the research methodology adopted was basically based on primary data via which the most recent and accurate piece of first hand information that could be collected from all possible source. Secondary data was used to support primary data wherever needed.

Primary data was collected using the following techniques:  Questionnaire method  Direct interview method  Observation method

The main tool used was the questionnaire method. Further direct interview method, where a face to face formal interview will be taken. Lastly observation method was used continuously with the


questionnaire method, as one continuously observes the surrounding environment he works in.

Procedure of Research Methodology:  To conduct this research the target population was the people aware or not aware from modern Investment plan like: Mutual Fund, Unit Linked Insurance Plan, Systematic Investment Plan and Fixed Deposit and paying tax.  Target geographic area was Jaipur. Sample size of 90 people was taken  To these 90 people a questionnaire was given, the questionnaire was a combination of both open ended and closed question.  Some people already have investment plan were also interviewed to know their prospective.  Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendation given.

Sources of Secondary Data: These source were use to obtain information on, ICICI Bank and other competitors history, current issues, policies, procedures etc, wherever required.  INTERNET  MAGZINES 5





65 25 90

No. of Respondents
70 60 50 40 30 20 10 0 MARRIED UNMARRIED 25 65



65 samples are married out of 90 samples and they were more potential customer.


NO. OF RESPONDANTS 17 32 41 90
Graph No. 2 No. of Respondants

45 40 35 30 25 20 15 10 5 0 GOVT. EMPLOYEE PVT. EMPLOYEE 17 32



OBSERVATIONS: In during my summer internship I observed that Pvt. And Self employed were major prospective instead of govt. employee.


1. In which Sector do you prefer to invest your money?

Private Sector Government Sector Total

Graph No. 3
No. of Respondants

41% Pvt. Sector Govt. Secotor 59%



I field in my during my field work 59% samples were private sector whereas 41% samples . were prefer to invest their money in government sector.

2. Which type of Investment plan do you prefer? PROFILE BASIS a. Bank FD b. ULIP(insurance products) c. Mutual Fund d. Stock Market e. SIP(Systematic Investment Plan)
Graph No. 4
No. of Respondants
30 25 20 15 10 5 0 Bank FD ULIP Mutual Fund Stock Market SIP 16

NO. OF RESPONDENTS 16 26 14 22 12

26 22





• •

26 sample out of 90 were preferred ULIP that is ULIP is more preferable Investment product Secondly 22 sample out of 90 were preferred Invest in Stock Market.

3. How much term of Investment Plans do you like most? PROFILE BASIS a. 0-3 years b. 3-6 years c. 6-10 years d. Above 10 years
Graph No. 5

NO. OF RESPONDENTS 18 35 27 10

No. of Respondants



30% 39%

0-3 years

3-6 years

6-10 years

Above 10 years



39% of samples preferred 3-6 years Investment while 30% people preferred 6-10 years Investment.

4. What do you see in long term Investment plans? PROFILE BASIS a. Growth b. Risk Cover c. Tax Benefit d. All of the above
Graph No. 6

NO. OF RESPONDENTS 11 09 18 52

No. of Respondents

12% 10%

58% 20%


Risk Cover

Tax Benefit

All of the above


OBSERVATION: • I observed that in during the summer project more than half of respondents which 58% were interested in all of the above factors.

5. How much risk do you prefer in Investment Plans? PROFILE BASIS
a. High Risk b. Moderate Risk c. Low Risk Graph No. 7
No. of Respondents


18% 48% High Risk Moderate Risk Low Risk 34%

OBSERVATION:  I found in during my training 48% preferred High risk whereas 34% samples preferred moderate risk while low risk sample were very low.  As I observed that max people are of below 30 they have willingness to achieve high growth for fulfill their dreams and


therefore, they want to invest their money in pure equity market rather then debt or money market

6. Have you ever used Mutual Fund as an Investment before? PROFILE BASIS a. Yes b. No
Graph No. 8
No. of Respondents


36 Yes No 54



I observed in during my training 54 samples never invest their money in MFs while 36 samples invested their money in MFs.

7. Do you consider Inflation a significant risk? PROFILE BASIS a. Yes b. No
Graph No. 9


No. of Respondents


Yes No




I observed that people are not investing their money in market due to increasing inflation so 77% were said Inflation is significant risk.

8. Is a down period in the Stock Market a buying opportunity? PROFILE BASIS a. Yes b. No
Graph No. 10
No. of Respondents


36% Yes No 64%



 64% believe that down period of stock market is a buying opportunity because that time they can get more units instead of up period of stock market.

9. Is Private Life Insurance Company reliable for Investment? PROFILE BASIS a. Yes b. No
Graph No. 11


No. of Respondents
Yes No

39 51


OBSERVATION: I observed that more than samples preferred private companies rather than govt. for their better services.


What are the factors on which Private Life Insurance Company differs from LIC? PROFILE BASIS a. Service Quality b. Flexibility c. Maturity Period
d. Returns


Graph No. 12
No. of Respondents

18% 41%



Service Quality






Service Quality Flexibility Maturity Returns Total

Respondents 37 24 13 16 90

Percentage 41% 27% 14% 18% 100%

11. policy?

Do you have any other Investment/Insurance


Graph No. 13
No. of Respondents


Yes NO




II observed that in during my training 81% has Investment plans already and many of people has their policy from private companies rather than govt. companies.


From which Company NO. OF RESPONDENTS 33 23 16 18
Graph No. 14

PROFILE BASIS a. ICICI Prudential b. HDFC Standard Life c. Bajaj Alianz d. Other

No. of Respondents

20% 18% 25%


ICICI Prudential

HDFC Standard Life

Bajaj Alianz



OBSERVATION: Respondents 33 23 16 18 90 Percentage 37% 25% 18% 20% 100%

ICICI Prudential HDFC Std. Life Bajaj Allianz Other Total



Observation & Findings

 Maximum people were not ready to investment because they already invested their money in March due to tax benefit.  The second reason was due to political uncertainty stock market is highly volatile hence people were very scared for investment  Maximum people were interested in private sector for invest their money.  The most of people made aware by Investment Promotion, Financial Consultants and Agents.  Most of respondents admitted that they take plan or like to take Investment plans because of its tax free nature.  Company is getting its most of business in Investment from ULIP and Fixed deposit.  Respondents admitted that the product awareness which is provided through intermediaries is high.  I observed that many of respondents agreed that down stock period is a buying opportunity.  Product awareness of ICICI bank is very high.




 When I started my training that time Market scenario was in declined Stage.  Due to declined stage people were not interested to do investment.

 Mostly people were opt Investment or insurance plans in march due to tax saving because tax benefit is the most important factor for opting Long term investment plans or insurance policies.  Some of the people provide false data as they were scared about providing actual data.  Getting appointments with the people was difficult as most of the people were busy and it was difficult to contact them again and again.




 The creation of awareness about the need and importance of modern Investments is vital.  New product innovation, low money investment plans and better service is crucial for the company to increase its market share.  Become more creative in capturing a wider range of customer by using multiple distribution channels.  ICICI bank is giving more stress on employees and providing more than enough target to employees which is very hard to achieve so bank should give less stress and realistic target.  Bank should give speed to their market research process. For this they should recruit young & enthusiast persons.




Change is very important and one whose goes which the changing environment always succeeds, that is what I have learnt from the study. The competition has grown too much in the Investment Sector with the opening of the sector. On the basis of the project I can conclude that today, the market scenario is totally change because people becoming more aware about new Investment plans which provides better growth and more tax benefit. In earlier we invested our money in like FD, Kisan Vikas Patra, Providend fund, Saving account and etc. but after some time of globalization we want to invest our money in modern investment plans like Stock market, ULIP, MFs, SIP, Commodities, Real Estate and etc. So people are moved gradually into that financial market because it is more attractive. when I joined the Summer Internship project that time market in the declined scenario and inflation rate was going up everyday so I had to face some difficulties for convinced to people for taking Investment because people were scared to invest their money in financial market The another factor is most of the people invested their money in march due to tax saving and some of the people were not aware to ULIP and MFs. However, It was a great experience for me because where I could learn more about the banking culture and how the employees are working and achieving the goal.




BIBLIOGRAPHY Reference Books
 Marketing management  Research and Methodology  Direct Taxes : : : : Philip Kotlar C.K. Kothari Dr. Vinod K. Singhania & Dr. Kapil Singhania

Newspapers:  Times of India  Business Standard

    

Search Engine:
 

Others: ICICI Banks related products and manual




Name…………………………………………. Occupation…………………………………… Contact No………………………………….... Marital Status…………………………………
1. In which Sector do you prefer to invest your money? a. Private Sector b. Government Sector 2. Which type of Investment plan do you prefer? f. Bank FD g. ULIP(insurance products) h. Mutual Fund i. Stock Market j. SIP(Systematic Investment Plan) 3. How much term of Investment Plans do you like most? e. 0-3 years f. 3-6 years g. 6-10 years h. Above 10 years 4. What do you see in long term Investment plans? e. Growth f. Risk Cover g. Tax Benefit h. All of the above


5. How much risk do you prefer in Investment Plans? d. High Risk e. Moderate Risk f. Low Risk 6. Have you ever used Mutual Fund as an Investment before? b. Yes c. No 7. Do you consider Inflation a significant risk? c. Yes d. No 8. Is a down period in the Stock Market a buying opportunity? c. Yes d. No 9. Is Private Life Insurance Company reliable for Investment? c. Yes d. No 10. What are the factors on which Private Life Insurance Company differs from LIC? e. Service Quality f. Flexibility g. Maturity Period h. Returns 11. Do you have any other Investment/Insurance policy? a. Yes b. No 12. From which Company e. ICICI Prudential f. HDFC Standard Life g. Bajaj Allianz h. Other………………………………………