“STUDY ON PERFORMANCE AND INVESTMENT

ANALYSIS ON MUTUAL FUNDS”

SUMMER INTERNSHIP PROJECT CARRIED OUT ON
ICICI PRUDENTIAL MUTUAL FUND

BISHAL PAUL
18-50-125
MBA 3RD SEM
 CONTENT

 Introduction of the Topic

 Company Profile
 Objectives
 Research Methodology
 Sources of Data
 Data Analysis & Interpretation
 Usefulness of the Training
 Practical Exposure
 Findings
 Suggestions & Recommendations
INTRODUCTION OF THE TOPIC
• Mutual Fund is one of the best options for the investor available in the market.
A mutual fund is a type of financial vehicle made up of a pool of
money collected from many investors to invest in securities such as stocks,
bonds, money market instruments, and other assets.
• The first company that dealt in mutual funds was the Unit Trust of India. It was
set up in 1963 as a joint venture of the Reserve Bank of India and the
Government of India.
• In November 1987, the first non-UTI Asset Management Fund was set up by
the State Bank of India.
• Currently there are 42 AMC’s operating in India with a net AUM of ₹24.54
trillion as on 31st July, 2019.
• HDFC Mutual Fund, ICICI Prudential Mutual fund and SBI Mutual Fund are
the top three AMC currently operating in India.
COMPANY PROFILE
 Company Name: ICICI Prudential AMC
 Company Type: Investing in Mutual Funds, Trading
 CEO & MD: Mr. Nimesh Shah
 CIO: Mr. S.Naren
 Products & Services offered :Mutual Funds, Portfolio Management
Services, Advisory Services, Real Estate Investment
 Headquarter: Bandra Kurla Complex,Mumbai, India
st
 Total Assets: 321,281.17crores ( As on 31 Marsh 2019)
 Total Employees: 2000-2500
 Founded : 1993
 Joint Venture: 1998
 Major Competitors: HDFC , SBI, Reliance, Axis AMC’s
LOGO & PICTURES
OBJECTIVES OF THE STUDY
 To gain knowledge and skills required to compete in the corporate
sector
 To understand and have a overview in the financial market
 To understand how an Asset Management Company works
 To understand the financial planning and investment in the financial
market
 To determine the most suited fund to be invested according to the
situations
 To know more about the mutual funds and its investments area
 To know the mutual fund performance in the present market
 To get insight knowledge about mutual funds
 To know whether the people are happy towards their investments
 To know people behavior regarding risk factor involved in mutual fund
RESEARCH METHODOLOGY
 The process used to collect information and data for the purpose of
making business decisions. The methodology may include publication
research, interviews, surveys and other research techniques, and could
include both present and historical information.
 Descriptive research is defined as a research method that describes the
characteristics of the population or phenomenon that is being studied.
This methodology focuses more on the “what” of the research subject
rather than the “why” of the research subject.
 SOURCE OF DATA
 Primary Data: I visited IFA’s and many other distributors
and clients to gather the data directly. I was also able to
meet direct customers when I was given a 5 days training in
a make shift canopy in the market.
 Secondary Data: Secondary data were collected from the
company website and the NISM website.
 DATA ANALYSIS &
INTERPRETATION
 My research was carried in the city of Guwahati only. The sample size was 70.
My sample mostly included the Independent Financial Advisors (IFA’s),
distributors, agents and a small amount of direct or potential clients which I
interacted during the course of marketing or the canopy service organized by
my organization.
 From my research and survey I found at that the potential investors falls under
certain age groups ranging from 25 to 38. 65% investors falls in this group. This
groups people are ready to take risk in Mutual Funds This can be justified with
a logic that the younger generation can take the risk to get the return from the
stocks and mutual fund. Around 65% are potential male investors.
 Around 40% investors are employed and around 35% investors are self
employed. This is because people who are employed like to deposit some of
their savings in the avenues such as mutual funds and equities as their future
savings. This is because they give a better return than that of other investment
avenues such as post office savings or bank deposit. Also mutual funds have a
high liquidity factor except those close ended funds.
 CONTINUED
 Regular returns and tax benefits also play an important role in the mind of the
people for which they tend to invest for future. People also go for tax benefits and
fund diversification and so they invest in mutual funds.
 Since my study was based mainly on the data and information collected from IFA’s
and distributors and a small numbers of direct customers so I found out that people
are more interested in investing in mutual funds followed by bonds and fixed
deposits.
 Even though HDFC and ICICI Prudential are the two largest AMC’s in India, but my
study was confined to Guwahati only. So I found out that the investors prefer SBI
AMC to other AMC. Also SBI AMC has the largest AUM of 4664cr as of 2018 in NE
India which is much more than the rest AMC’s.
 From my data and study I found out that the main reason for choosing ICICI
Prudential AMC is that because of the risk factor. Since it is one of the largest AMC
in the country, even if the market crashes it has less effect than the rest of the AMC.
Then come the brand value followed by liquidity, tax benefits, better returns and
portfolio diversification.
 INCOME GROUP
Income

5%

25% 15%
Below 1,00,0000
1,00,000-3,00,000
3,00,000-5,00,000
5,00,000-7,00,000
25% 7,00,000 and above
30%
REASONS FOR INVESTING IN
MUTUAL FUNDS
Reasons

5%

25%
20% Tax benefits
Fund diversification
Better Returns
Taking risks

20% Others
30%
 CHOICE OF AMC
Preference of AMC

20% 18%

HDFC
ICICI

12% SBI
20% Axis
Any others

30%
FACTORS FOR CHOOSING ICICI
Factors

14% 17%
Brand Value
Better Returns
12%
Less Risk
15%
Tax Benefits
Liquidity
14%
Portfolio Diversifications

26%
BEST FUND RECOMMENDED BY
IFA’S
Specific funds recommended by IFA's

ICICI Prudential Blue

22% chip fund
26%
Axis Blue chip fund

SBI Blue chip fund

19% Mirae Asset large cap

16% fund
Others

17%
USEFULNESS OF THE TRAINING
 Helped me to gain a lot of confidence
 I tried to groom myself in the conversation and confidence area
 Meet different peoples having different ideas, humor,
knowledge, skills which in return helped me a lot about the
market
 Tried to know about the working style of the AMC’s
 Helped me a lot in gaining idea about Mutual Fund industry
 Gave a practical exposure
 Helped in learning how to deal with different clients
 Got to learn about how all the different departments work
 Client Relationship Management
 PRACTICAL EXPOSURE
 I was able to meet many IFA’s and distributors with our
relationship managers. Sometimes I was asked to go alone
to the calls.
 I got a chance to interact with direct customers when I was
asked to go alone to a make shift canopy in local area of
Guwahati. Their I directly tried to pitch the customers for
investing in Mutual funds
 There were also a few interactive sessions held in our office
which helped me a lot gather about how an AMC works.
 FINDINGS
 From my study I found out that the young people take more risk than the other
age group people. They are mostly investing their saving in the modern
approach of the investment rather than the traditional approach. Because they
understand the power of compounding in the modern approach. But we can’t
deny that other age group people don’t take interest in the investment in
modern approach but there number is less than the younger generation people
(age- 18 to 35).
 Most of the people go with the mutual fund , fixed deposit and the commodity
for their portfolio. this are the main priority for their portfolio.
 Because people knows that the mutual fund gives the high return in 5 years and
the risk is less as compare than the equity but fixed deposit gives the less return
but consistent return than the MF but the risk is less.
 SUGGESTIONS AND
RECOMENDATIONS
 Working as an intern in ICICI PRUDENTIAL Mutual Fund, infelt
that ICICI can go for Promotional activities for gaining more
market share.
 ICICI should maintain its brokerage.
 Company should try to provide wider range of services
 Company should pay more attention on customer satisfaction.
 More and more emphasis must be given on the research and
development.
 Proper training and up to date knowledge of every financial
product should be given to every employee of ICICI so that they
can give their best performance to the clients.