Chapter 1

INTRODUCTION1.1 About the company:

ICICI PRUDENTIAL Asset Management Company Ltd. (IPAMC/ the Company) is the joint venture between ICICI Bank, a well-known and trusted name in financial services in India and PRUDENTIAL, one of UKs largest players in the financial services sectors. IPAMC was incorporated in the year 1993. The Company in a span of over 18 years since inception and just over 13 years of the Joint venture has forged a position of preeminence in the Indian Mutual Fund industry as the second largest asset management company in the country, contributing significantly to the growth of mutual fund industry in India.

The Company manages significant Mutual Fund Asset under Management (AUM), in addition to Portfolio Management Services and International Advisory Mandates for clients across international markets in asset classes like Debt, Equity and Real Estate

IPAMC has witnessed substantial growth in scale. From merely 2 locations and 6 employees during inception to the current strength of over 700 employees with reach across around 150 locations, the growth momentum of the Company has been exponential. The organization today is an ideal mix of investment expertise, resource bandwidth & process orientation. IPAMCs Endeavour is to bridge the gap between savings & investments to help create long term wealth and value for investors through innovation, consistency and sustained risk adjusted performance.

The Fund House has continuously aimed to provide investors with financial solutions to aid them in achieving their lifecycle objectives. It has constantly been on the forefront of innovation and has introduced products aligned to meet customer needs leading to a well-diversified portfolio of around 57 mutual fund products. The success of the endeavors is evident in the mutual fund investor base that has witnessed significant growth

ICICI PRUDENTIAL Mutual Fund gained from managing funds as per its investment objectives and was able to deliver superior risk adjusted returns. The consistent long term performance was achieved on the strength of fundamentals, process driven investment approach with enough flexibility for the fund managers to manage their funds in their unique style and insight.

1.2 Different schemes and FundsThere are wide range of Mutual Fund schemes that care to the investor needs, whatever the age, financial position, risk tolerance and return expectations. The mutual fund schemes can be classified according to both their investment objectives(like income, growth, tax saving) as well as the number of units (if these are unlimited then the fund is an open-ended fund one while if these are limited units then the fund is close-ended).

1.3 Fund Categorization:The mutual fund industry of India is continuously evolving. Along the way, several industry bodies are also investing towards investor education. Yet, according to a report by Boston Analytics, less than 10% of our households consider mutual funds as an investment avenue.In fact, a basic inquiry about the types of mutual funds reveals that these are perhaps one of the most flexible, comprehensive and hassle free modes of investments Various types of mutual funds categories are designed to allow investors to choose a scheme basedon the risk they are willing to take, the investable amount, their goals and the investment Figure 1.3.1: Categories of Fund Let us have a look at some important mutual fund schemes under the following three categories

I.Open-Ended- This scheme allows investors to buy or sell units at any point in time.

1.Debt/ Income- In a debt/income scheme, a major part of the investable fund are channelized towards debentures, government securities, and other debt instruments. Although capital appreciation is low (compared to the equity mutual funds), this is a relatively low risk-low return investment avenue which is ideal for investors seeing a steady income.

2. Money Market/ Liquid- This is ideal for investors looking to utilize their surplus funds in short term instruments

3. Equity/ Growth- Equities are a popular mutual fund category amongst retail investors. Although it could be a high-risk investment in the short term, investors can expect capital appreciation in the long run. If you are at your prime earning stage and looking for long-term benefits, growth schemes could be an ideal investment.

3. i. Index Scheme- Index schemes is a widely popular concept in the west. These follow a passive investment Strategy where your investments replicate the movements of benchmark

3.ii. Sectoral Scheme- Sectoral funds are invested in a specific sector like infrastructure, IT, pharmaceuticals, etc. or segments of the capital market like large caps, mid caps, etc. This scheme provides a relatively high risk-high return opportunity within the equity space.

3. iii. Tax Saving- As the name suggests, this scheme offers tax benefits to its investors. The funds are invested in equities thereby offering long-term growth opportunities. Tax saving mutual funds (called Equity Linked Savings Schemes) has a 3-year lock-in period.

4. Balanced- This scheme allows investors to enjoy growth and income at regular intervals. Funds are invested in both equities and fixed income securities; the proportion is pre-determined and disclosed in the scheme related offer document.

II.Closed-Ended- In India, this type of scheme has a stipulated maturity period and investors can invest only during the initial launch period known as the NFO (New Fund Offer)

1. Capital Protection- The primary objective of this scheme is to safeguard the principal amount while trying to deliver reasonable returns. These invest in high-quality fixed income securities with marginal exposure to equities and mature along with the maturity period

2. Fixed Maturity Plans (FMPs)- FMPs, as the name suggests, are mutual fund schemes with a defined maturity period. These schemes normally comprise of debt instruments which mature in line with the maturity of the scheme, thereby earning through the interest component (also called coupons) of the securities in the portfolio. FMPs are normally passively managed, i.e. there is no active trading of debt instruments in the portfolio. The expenses which are charged to the scheme are hence, generally lower than actively managed schemes.

1.4 Channels of Selling Mutual Fund:

CHANNELS OF SELLING MUTUAL FUNDSMutual funds are emerging as an important financial intermediary for the investing public in India. Conceptually and operationally they are different. The investors need to understand the working of a mutual fund and the increasingly diverse and complex investment options brought to them by a large number of mutual funds. The key channel in bringing the mutual funds to a large number of investors all over the country is the network of

INTERMEDIARIES / DISTRIBUTORS.

In this industry we have five different channels through which mutual fund are sold: Mutual Fund Company National Distributors (NDs) & Intermediaries Banks Individual Financial Advisors (IFAs) Internet Each one has its own customer base. Their way of dealing with them is totally different from other. Every one attracts in their own way. How they attract we will study. There are many industries here. The urgency to keep increasing in size has led mutual funds to use marketing hooks to draw investors. As we rely only on channel partners, our relation with them really is going to play a vital role. How different companies lure the partners, well study that. As to start with we will first study about the intermediaries in brief by describing who they are and how they help a direct investor.

Mutual Fund Office:Anyone can walk into a mutual funds office, and buy/sell units of its schemes. Its a simple process, and there are employees of the fund house on hand to guide you through. If you are buying units, you will have to fill up an application form and hand over a cheque equivalent to your investment. The fund house will give you an acknowledgement of your investment in its scheme(s) and subject to your cheque being cleared, send you an account statement within three to seven days. Since a fund house market only its schemes and not those of its competitors, buying directly means knowing which fund house we want to invest in. If we are selling units, the relevant document is the redemption form, which sometimes forms part of your account statement and can be torn off it, or can be had from the fund houses office. The fund house mails the cheque within three days.Intermediaries:Distributors such as agents, banks and stockbrokers are present in much greater numbers, which makes them the preferred option among investors. While dealing with the intermediaries, make sure they have the AMFI (Association of Mutual Fund in India) certification-a SEBI precondition; since September 2003, for selling mutual funds, intended t ensure that only qualified distributors dispense mutual fund advice. AMFI issues photo identity cards to registered intermediaries, which is proof of their having acquired the certification.

National DistributorsThe big agents are one-stop sellers of financial products. Agents score over mutual funds on convenience, choice and quality of service. They operate from multiple locations-for example, national distributors like Bajaj Capital has more outlets than most mutual funds-and are supported by an army of registered agents, some of whom are willing to come to our doorstop and sell schemes to you. Further, while a mutual fund offer its schemes, a big agent has the biggest stock among all mutual fund sellers, selling virtually all schemes of virtually every fund house, as well as other investment products. For us, this means more choice. If we know the scheme we want to invest in, go to an agent, fill up the schemes form and give in a cheque. Even if we dont know which scheme we want to invest in, a good agent will understand our need and help you pick a scheme. The agent should understand our reasons for investing in a mutual fund and based on that offer us appropriate options, and let us make a choice. An agent is supposed to be impartial and not show a preference towards a particular fund house. The very nature of the relationship between an intermediary and fund houses opens up the possibility of bias. Fund houses pay intermediaries a commission linked to the business they bring in. If fund house X pays a higher commission than fund house Y, an intermediary might push scheme X, as it stands to earn more. How do we know that we are being misguided or not? The entry load charged by a scheme can offer us some clues. The entry load represents the upfront costs an investor pays to invest in a scheme, and the agents commission tends to flow out of it. The higher the entry load, chances are, the higher the agents commission. If the agent is pushing the higher load scheme, perhaps he is more interested in maximizing his commission than our returns. Hence always know the entry load being charged by a scheme. Till mid 2002, intermediaries passed on a part of their commission to investors, as an incentive to invest. The amount of cash paid depended largely on much they got from a fund house. Obviously the more they got form the fund house, the more they passed on to investors. This often created an unhealthy situation, where cash incentives, and not investment-worthiness, determined which scheme, an agent recommended. In June 2002, to stop such abuse, SEBI made it illegal for intermediaries to give money and gifts to investors. Although intermediaries cant lure you with money now (legally speaking that is), their commission-based earnings structure means a distributor could still be a partial to a fund house.

BanksA number of banks, especially the private and foreign ones, are into marketing the mutual fund schemes. Many of them market not only their own schemes, but also those of their rivals as a point of purchase; banks are a good option because of their fantastic reach-banks can be found in every neighborhood. This wide reach has enabled banks to emerge as a major distributor. In 1999, barely 10 percent of fresh mutual fund sales were made through banks; during 2003, various estimates put the share of banks in mutual fund sales at between 30 percent and 50 percent. In terms of scope of service, banks are a notch below agents. Whatever your profile or investment amount might be, an agent will offer you personalized service-he will listen to your investment needs, offer you information on various schemes as asked by you, and suggest investment options. The private sector Banks today like HDFC, ICICI and AXIS Bank are very aggressive in their approach and are willing to take that extra effort to satisfy their customers and hence are willing to sell the mutual funds of their competitors too. All the schemes in such banks are customer centric as they give a lot of importance to customer retention. It should also be noted that about 40% of ICICIs funds are sold through the various ICICI branches around the country. It is one competitive advantage that ICICI Mutual Funds enjoys as ICICI has the most number of branches in the country and no other bank is yet to match that.

Individual Financial AdvisorsBig brokers combine the attributes of agents (one-stop shop, personalized service) and banks (a team of analyst who crack the mutual fund industry). This service, though usually comes at a cost, and is reserved for their clients. Small brokers, on the other hand, welcome retail investors, but most of them market schemes of select fund houses only. These are independent professionals trained to advice you on all personal finance matters. They all sell financial products, as agents currently do.

The InternetAt present, around 3 percent of mutual fund transactions are done online. This figure is bound to increase, with better Net connectivity are also expected to tie up with more banks, which will bring more investors into the loop. The other move that will provide a fill up to online transactions to supplement by physical documentation. At present, some fund houses enable buying-and in some instances, selling on three platforms:

1. Own websites- Most of the mutual fund houses let you buy and sell the units of their schemes through their websites. All you need is a Net banking account with any of the banks the fund houses have tied up with. You log on to the funds site, choose your scheme and investment amount. A link on the website takes you to the website of the designated bank, where you make your payment. Money is transferred from your Net banking account to the mutual fund and units are allotted to you instantaneously. The transaction is also documented in the physical form-the fund houses send you the application form to sign, and send back. Once you have done an online transaction with a fund house, you can open an online account with it. This will enable you to sell your holdings, switch between the schemes and purchase additional units-at the click of a mouse.

2. Financial Portals- You can also buy units of several mutual funds through financial portals as myiris.com, timesofmoney.com and Indiainfoline.com among others. The process and requirements are similar to that of for buying through the funds site. However, most portals enable only purchase.

3. Online trading portals- Share trading portals like ICICI Direct (icicidirect.com) and Share khan (sharekhan.com) too offer a fair number of mutual fund schemes on their platforms. Registered user can buy or sell their units on offer, just like a stock-at no extra cost

Chapter 2

LITERATURE REVIEW

2.1 Evolution Of Indian Financial Market:India Financial marketis one of the oldest in the world and is considered to be the fastest growing and best among all the markets of the emerging economies. The history of Indian capital markets dates back 200 years toward the end of the 18th century when India was under the rule of the East India Company.

The development of the capital market in India concentrated around Mumbai where no less than 200 to 250 securities brokers were active during the second half of the 19th century. Thefinancial market in Indiatoday is more developed than many other sectors because it was organized long before with the securities exchanges of Mumbai, Ahmadabad and Kolkata

By the early 1960s the total number of securities exchanges in India rose to eight, including Mumbai, Ahmadabad and Kolkata apart from Madras, Ranchi, Delhi, Bangalore and Pune.

Today there are 21 regional securities exchanges in India in addition to the centralized NSE (National Stock Exchange) and OTCEI (Over the Counter Exchange of India). However the stock markets in India remained stagnant due to stringent controls on the market economy that allowed only a handful of monopolies to dominate their respective sectors.The corporate sector wasn't allowed into many industry segments, which were dominated by the state controlled public sector resulting in stagnation of the economy

There after when the Indian economy began liberalizing and the controls began to be dismantled or eased out, the securities markets witnessed a flurry of IPOs that were launched. This resulted in many new companies across different industry segments

A remarkable feature of the growth of the Indian economy in recent years has been the role played by its securities markets in assisting and fuelling that growth with money rose within the economy. This was in marked contrast to the initial phase of growth in many of the fast growing economies of East Asia that witnessed huge doses of FDI (Foreign Direct Investment) spurring growth in their initial days of market decontrol. During this phase in India much of the organized sector has been affected by high growth as the financial markets played an all-inclusive role in sustaining financial resource mobilization. Many PSUs (Public Sector Undertakings) that decided to offload part of their equity

The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter Exchange of India) during the mid 1990s by the government of India was meant to usher in an easier and more transparent form of trading in securities. The NSE was conceived as the market for trading in the securities of companies from the large-scale sector and the OTCEI for those from the small-scale sector. While the NSE has not just done well to grow and evolve into the virtual backbone of capital markets in India the OTCEI struggled and is yet to show any sign of growth and development. The integration of IT into the capital market infrastructure has been particularly smooth in India due to the countrys world class IT industry. This has pushed up the operational efficiency of the Indian stock market to global standards and as a result the country has been able to capitalize on its high growth and attract foreign capital

The regulating authority for capital markets in India is the SEBI (Securities and Exchange Board of India). SEBI came into prominence in the 1990s after the capital markets experienced some turbulence. It had to take drastic measures to plug many loopholes that were exploited by certain market forces to advance their vested interests. After this initial phase of struggle SEBI has grown in strength as the regulator of Indias capital markets and as one of the countrys most important institutions. Today, the financial system in India comprises of financial institutions. Financial markets, financial instruments and services. Financial market refers to those places where financial assets are created sand traded. Financial market represent the a claim for the payment of principal amount some times in future date and for periodic payment of principal amount some times in future date and for periodic payment of money in the form of interest or dividends. The Reserve Bank of India as the same as the main regulator of credit is the apex institution in the financial system. Other important financial institutions are the commercial banks (Public and private sector), cooperative banks, and regional rural bank and development banks. Non- bank financial institutions include financial and leasing companies and other institutions like LIC, GIC, UTI, Mutual Funds, Provident Funds, Post office and Banks etc. The banking system is, by far, the most active segment of the financial sector, financial market are mainly classified as Money Market and Capital Market. The term, money market is used to denote the financial institutions which deal with the short term borrowing and lending of money. The term, capital market is used to mean the institutes which deals with the leading and borrowing of long- term money.As mentioned earlier, the economic and financial scenario of India prior to 1991 was somehow not optimistic. Indian economy at the time was suffering from low savings. Low GDP, high inflation, high unemployment, high rates of interest, low forex reserve, etc. When India approached IMF for financial assistance in 1991, we were imposed certain conditions on the basis of which we accepted under the pressure from IMF were actually the starting point of economic reforms popularly known as LPG process. The result of LPG process of 1991 is more clearly visible now. India is now being ranked as one of the fasted growing economy of the world. The saving of the country is now around 29% foreign investors are finding Indian market with high potential.Nowadays, bank rates have fallen down below the inflation rate. Therefore, keeping large amount 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 available is to invest the money in stock market. But a common investor is not well informed and competent enough to understand the complexities involved in the price movement of shares in the stock market.

2.2 Mutual Funds & market development:Mutual Funds play an important role in the development of the financial systems. First, they pool the resources of small investor together, increasing their participation in financial markets, which helps both inclusion and the efficient functioning of markets themselves, as a result of large volumes. Second, Mutual Funds, being institutional investor, thereby providing services based on informed decisions to small investors. Decisions made on the basis of deeper understanding of risks and returns contribute to financial stability, besides helping to mitigate market risk for this group of investors. Third, transparency in investment strategies and outcome, through typically mandated by regulators, is relatively easy to deliver on, so that investors can find out exactly where they stand with regards to their investment at any point of time.Mutual Funds have contributed significantly in broadening and deepening of different segments of the money Market and, to some extent, the Government Securities market. Money market Mutual Funds (MMMFs) were introduced in India in April 1991 to provide an additional short term investment avenue to investor and being money market instruments within the reach of individuals.The Reserve Bank had made several modifications in the scheme to make it more flexible and attractive to banks and financial institutions. These guidelines were subsequently incorporated into the revised SEBI regulations. In October 1997, MMMFs were permitted to invest in rated corporate bonds and debentures with a residual maturity of up to one year. Within the ceiling existing for Commercial paper (CPs). The minimum lock- in period was also reduced gradually to 15 days. Making the scheme more attractive to investorsIn order to promote retail holding in government securities and broaden the investor base. Mutual Funds which invest exclusively in government securities, Gilt Funds, were introduced. The first Gilt Fund in India was set up in December 1998. However, Gilt Funds have registered moderate growth. Traditionally, the majority of the money parted in Mutual Funds comes from institutional investor which include corporate, bank and foreign institutional investors (FLLs). All schemes, except equity oriented schemes, have seen a high participation from institutional investors. Corporate dominate the institutional segment with close to 905share of institutional AUM. Retail participation is more in equity oriented schemes slowing picking up in Gold Exchange Traded Funds (ETFs).The country wide mutual fund penetration is abysmal with majority of the assets (over 75%) being held in the top 5 cities (Mumbai, New Delhi, Bangalore, Chennai and Kolkata), Mumbai alone accounts for 49% of the assets. Further the top 15 cities account for 87% of the AUM.The low distributor support in smaller cities has resulted in Mutual Funds becoming an investment product restricted to urban Indians as of now. Hence it is of great importance for Mutual Fund to target smaller towns and rural areas to spread the reach the of the asset class as well as provide investors from smaller cities an important avenue for investment.

Low public awareness (especially in smaller towns) about the investment opportunity in Mutual Funds is also an integral factor affecting their growth. It is thus very important to make investors aware about the benefits of Mutual Funds viz. professional management, low cost, transparency, liquidity and a strong regulatory frame work.

2.3 History of Mutual Fund In India:The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly divided into four distinct phases

First Phase - 1964-1987Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). ICICI Mutual Fund was the first non-UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004 crores.

Third Phase - 1993-2003 (Entry of Private Sector Funds)With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805crores. The Unit Trust of India with Rs. 44,541 crores of assets under management was way ahead of other mutual funds.Fourth Phase - since February 2003In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs. 29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations.The second is the UTI Mutual Fund, sponsored by ICICI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth.The graph indicates the growth of assets over the years.

Figure 2.3.1: Growth in asset under management

What is a Mutual fund?Mutual funds, as the name indicates is the fund where in numerous investors come together to invest in various schemes of mutual fund. Mutual funds are dynamic institution, which plays a crucial role in an economy by mobilizing savings and investing them in the capital market, thus establishing a link between savings and the capital market.

A mutual fund is an institution that invests the pooled funds of public to create a diversified portfolio of securities. Pooling is the key to mutual fund investing. Each mutual fund has a specific investment objective and tries to meet that objective through active portfolio management.

Mutual fund as an investment company combines or collects money of its shareholders and invests those funds in variety of stocks, bonds, and money market instruments. The latter include securities, commercialpapers, certificates of deposits, etc. Mutual funds provide the investor with professional management of funds and diversification of investment.

Figure 2.3.2- The working of mutual fund

Chapter 3

RESEARCH METHODOLOGY AND DESIGN3.1 RESEARCH OBJECTIVE: To study the mutual fund industry in detail. To study the investment procedure in detail. To find out the market risk of sip plan. To aware the client about mutual fund investment. To suggest better investment option according to market behavior to the client. Expansion of mutual fund investment. To remove the past image of mutual fund from the mind of investors. To show the beneficiary aspect of mutual fund. To give the updated information to the investors about the high return and less risk

3.2 Research Design:A research design is a pattern or an outline of a research projects working. It is a statement of only the essential element of a study, those that provide the basic guidelines for the details of the project. It comprises a series of prior decision that taken together provide master plans for executing a research projects.A research design serves as a bridge between what has been established i.e., the research objectives and what is to be done, in conduct of the study to relish those objectives. If there were no research design, the research would have only foggy notions as about what is to be done. I have used of Exploratory Type. The research is of both qualitative as well as quantitative type.3.3 Sources of Data: Primary Source:The primary data is collected using sampling method and by survey using questionnaire. Secondary Source:Secondary data includes information regarding present market scenario, Information regarding Mutual Funds and competitors are collected by internet, Magazines and Newspaper and books.

3.4 Sample Planning: Sample Size: 50 units. Sample Extent: Patna city.3.5 Sample design:A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or method the researcher would adopt in selecting items for the sample. I have used convenience sampling method

3.6 Data collection method: I have used survey method to collect the data. Questionnaire plan:I have used structured for gathering the required data through contacting respondent personally

3.7 Type of information: I have collected facts, awareness, attitude, future action plan and reason using questionnaire.3.8 Type of questions: Close ended questions for dichotomous. Multiple choice type Data analysis is based on the data collected by way of questionnaires. The data is tabulated and frequency distribution chart is prepared.

Chapter 4

Analysis & Interpretations

MUTUAL FUND ADVISORS SUGGESTION ABOUT INVESTMENT

Fig4.1-: Investors pattern of investorsINTERPRETATION:Mutual fund advisor will suggest the investors to invest in mutual fund investment more because it is less risky than any investment. In mutual fund the investor can invest in sip (systematic investment plan) which is depend upon NAV (net asset value) which is less risky and whenever investors want to close that scheme they can. And it is profitable because its profit is based on average basis.

REASONS FOR CHOOSING The Sector

Fig4.2: Reasons for investing in a sectorINTERPRETATION:After analysis we have got that lots of investors want to invest just for security purpose. Because most of the investors want to secure or their money, so for holding the money they want to invest in somewhere so that they can safe their money for future .and a persons who have no knowledge about security market, they can also be invest in mutual funds.

INVESTORS WHO KNOW ABOUT THE MUTUAL FUND SERVICES PROVIDED BY ICICI PRUDENTIAL AMC

Fig4.3: Knowledge about the companyINTERPRETATION:After analysis we have known that most of the investors dont know about the mutual fund services which has been provided by ICICI PRUDENTIAL AMC just because of publicity, ICICI PRUDENTIAL AMC doesnt show that it provides mutual fund services along with other services such as: pan card services, d.p. services, share trading services, IPOs services etc. thats why most of the peoples are unknown about the ICICI PRUDENTIAL AMC mutual fund services.

INVESTORS INTERESTED TO INVEST IN MUTUAL FUND

Fig4.4: Interest level of investorINTERPRETATION:After analysis we have seen that most of the investors are not interested to invest in mutual fund just because of: Past image of mutual fund. Because of unawareness. They are unaware about the mutual fund benefits. They dont want to take risk

A INVESTORS WANTS TO INVEST ON WHICH BASIS

Fig4.5: Basis of preference

INTERPRETATION:

After analysis we have got the result that most of the investors want to invest in any securities on the basis of rate of return, when they invest in any believable security so they expected or anticipated that they will got the expected rate of return , Some people invest on the basis of safety purpose , some small investors mostly invest their money for saving and for getting into near future

PERSON WANTS TO TAKE INFORMATION ABOUT MUTUAL FUND

Fig4.6: Curiosity about mutual fund

INTERPRETATION:

By above analysis we can know that most of the clients,

Persons or investors want to know about the mutual fund benefits, schemes, and

Each and every information, because now a days every persons or investors want to

Get information about everything so that on time he can utilize optimum utilization

INVESTORS WHO WANT TO ATTEND THE SEMINAR CONDUCTED BY ICICI PRUDENTIAL AMC

Fig4.7: Seminars attended by the investors

INTERPRETATION:

By above evaluation we can see that some investors are interested to join the seminar on mutual fund which has been organized by ICICI PRUDENTIAL AMC because they actually want to know the actual situation of mutual fund that : benefits ,why this investment exist, why they should invest over there.

ON WHICH COMPANIES THE CLIENT BELIEVES MORE

Fig4.8: Trust level of investor

INTERPRETATION:We all know that most of the investors or persons are interested to invest in public co. or government co. in which there is less chance to drop out the invested money while on the other hand less of the persons are not interested to invest in private sector because there is more risk than public sectors.Same as we can see in the above chart that most of the investors want to invest in ICICI PRUDENTIAL AMC co. because investors has made the mindset that we will get always the profit in investing.

REASON FOR CHOOSING ICICI AMC FUND

Fig4.9: Reason for choosing ICICI fund

INTERPRETATION:

Most of the investors or clients want to invest in public co. because most of the clients think that It is risk free means to say there is less risk to invest in that type of funds, that is a trustworthy co. Some investors invest just because of good return, peoples perception towards that co. is that it will never incurred loss and it will not cheat the investors.

CLIENTS WANT TO GET ADVISORY SERVICES FROM ICICI PRUDENTIAL AMC

Fig4.10: Clients want to get advisory servicesINTERPRETATION:Investors who have already invested in mutual fund they all want advisory services from ICICI PRUDENTIAL AMC, in advisory services; we can know NAV (net assets value) of each fund on daily basis.So investors want to get those services so that they can take right decision on right time, if he sees that he is getting loss in investing fund so by this services he can switch from loss fund to profitable fund.

CLIENTS ATTITUDE TOWARDS DSP BLACK ROCK FUND WHICH PROVIDE 100% RETURN NOW A DAYS

Fig4.10: Clients towards DSP fundINTERPRETATION:We have seen that most of the investors dont want to invest in DSP black rock fund, which is international co. , they dont want to invest because they know that now a days the NAV of this fund is very low approx. (14 -15 rs.) so on this the 100% return is not so hectic for the org. and market is totally based upon uncertainty and always be fluctuating so he thinks that may be DSP black rock will not provide same return in future so the investors may get lost, so they dont want to invest in this. Only those investors would like to invest in this fund who invests for short term.

INVESTORS WOULD LIKE TO INVEST IN

Fig4.11: Investors area of investmentINTERPRETATION:We can see that most if the investors want to invest in debt funds because there is a solid reason behind this is that the debt funds provide the fixed rate of interest to the investors, there is no risk in that type of funds for the investors.While only big investors want to invest in equity market because equity fund provide the dividend according to performance of the org. if there will be profit in org so investors will get the dividend otherwise they will have to face loss Thats why investors want to invest in debt funds rather than equity market.

WHICH TYPE OF INSTRUMENT CURRENTLY INVESTED IN

Fig4.11: Current instrument of investmentINTERPRETATION: Now a days most of the investors want to invest in others funds such as: FDs INSURANCE Etc. After that the investors mostly focus on to invest in debt market just for reducing the risk. After that they want to invest in equity market for getting more profit. Then investors want to invest in commodity market just for saving money in near future.

Chapter 5

KEY FINDINGS

1) ICICI PRUDENTIAL AMC as an investment option in Mutual Fund does not possess much proficiency and potential customers in Ranchi city. Though the financial advisors advise their clients to go for Mutual Fund as an investment option. About 42% of advisors advise their clients to invest in Mutual Funds, followed by investing in Insurance sector. 2) The advisors after having a deep thought says that it is the Returns that make them convince their clients to go for investment in mutual funds. 36% of advisors said that it is the Returns which make a person to invest in Mutual Fund. Followed by Risk which is quite lesser in other investment options.3) A huge lot of advisors showed a positive response in dealing of for Mutual Fund. About 60% of them said that they are interested in dealing for Mutual Funds, because that results in higher brokerage.4) As far as ICICI PRUDENTIAL AMC is concerned about 91% of the advisors said that they are not aware of the services provided by ICICI PRUDENTIAL AMC, including Mutual Fund.5) When asked, 53% of advisors said that they are not interested to work with ICICI PRUDENTIAL AMC Securities, to the contrary with they dont have any such expansion plans and they have little knowledge about ICICI PRUDENTIAL AMC.6) In Ranchi city advisors dont have an appropriate knowledge about ICICI PRUDENTIAL AMC as an Investment hub.

5.1 Challenges ahead

The prime concern for mutual fund Industry is retail participation. The industry is still heavily dependent on institutional sales. The AMCs branches are located in Tier 1 & Tier 2 cities and few Tier 3 cities but if we compare the volume of transaction in these three categories, we observe a contrasting result. MF industry is still inaccessible to other small cities and town. There is still lack of innovative product in the market. The AMCs continue to sell same traditional product which only confused the investor.

The ban on entry load is a major deterrent for expansion of distribution channel. The AMC are facing huge competition industry as distributors.

Financial literacy is also one of the major factors in expansion of the industry in small cities and town.

The burden of paper work is also a load for investor as different AMCs have different procedure for purchase redemption and switch. The inclusion of all the funds under one folio will help in reducing not only the paper work.

Chapter 6

Recommendations & Suggestions

1. Same scheme (Including all the features) with a brand new name should be avoided. There should be some stripling difference between different schemes.2. Registrar in the CAMS should be more active informative & cooperative.3. More man power should be provided in the CAMS in order process the work in quick &efficient manner.4. The AMC should have their own portal which would deal with the quires of the investor provided facility of online transaction forms. This will make the working of the AMCs more efficient & will also satisfy customer.5. Investor & distributors should be updated with the latest information weekly statement of the fund in which investor have investor should be provided to them the MAV of all the schemes should be provided to the distributers.6. There should be a May I help your desk in the Front office which will help the distribution & investor and will solve their queries regarding the funds.7. There should be back office in the CAMs where at list a person from each AMCs should be there for timely & accurate processing.8. The courier or dispatch services of ICICI should be improved. The services needed fast.9. The sales channels between the banks &AMCs should be more effective and the services provider should be more informative regarding the funds.

Chapter 7

CONCLUSION

Most of investors are totally unaware about this investment. Very less people knows about the service of ICICI PRU AMC. Past image of mutual fund is not good. ICICI PRU AMC can promote the investors by advertising, hording, and by interviews to invest in this fund. Most of the investors want to invest in public co.s fund just because of safety purpose. Most of the investors want to safer side in investment. Most of the investors want to invest in debt funds because those are the risk free funds; it gives the interest on investment. Most of the investors dont know about the mutual funds so they want advisory services from ICICI PRU AMC which could provide them whole information about the market situation of mutual fund.

Bibliography

1. http:// www. MbanotesIndia.com/FINANCE-PROJECT/ Study-of-Mutual Funds and distribution Channel/ flypage_images.tpl.com2. http://www.mutualfundsIndia.com/res_mfiexp.asp3. Article base , Finance , investing www.articalbase .com4. Association of Mutual in India, www.amfinIndia.com5. Deccan herald, National, Detailed Story, www.deccanhearld.com6. Domain-b, market , Mutual funds, www.doman b.com7. E-mail wire, Home News by company, RNCOS, www.emaillwire.com8. Economic Times , http//economictimes.Indiatimes.com9. Finance Research, www.financeserch.com10. http:/ terjas-iimb.org/articles/26.php

Annexure

We assure you that all the information that will be collected from you will remain fully confidential and use only for study purpose.

NAME: ___________________________________DESIGNATION/ADDRESS:____________________________________________EMAIL ID: ______________________ PHONE NO.:___________________

1) As a financial advisor which investment options you will suggest your customers:a) Shares ( )b) Insurance ( )c) Mutual fund ( )d) Fixed deposit ( )

2) Please indicate reason for choosing above :a) Return ( ) b) Risk ( )c) Safety ( )d) Tax benefit ( )e) Others ( )

3) Do you know about the mutual fund services provided by the ICICI PRU AMC :a) Yes ( )b) No ( )4) Are you interested to invest in mutual fund :a) Yes ( )b) No ( )

5) Do you invest your money on which basis :a) Return ( )b) Safety ( )c) Tax saving ( )d) Others ( )

6) Do you want to collect information about mutual fund investment:a) Yes ( )b) No ( )

7) Will you like to work in ICICI PRU AMC Mutual Fund Ltd. , which deals with mutual fund :a) Yes ( )b) No ( )

8) In future will you attend the seminar arranged by ICICI PRU AMC to guide the investors about mutual fund :a) Yes ( )b) No ( )9) In which co. you believe more :a) HDFCb) ICICIc) Relianced) DSP black rocke) Any other fund _________________________

10) Why you believe only such kind of fund :a) Return ( )b) Good market position ( )c) Risk free ( )d) Any other reason ( )

11) Do you want the advisory services of ICICI PRU AMC :a) Yes ( )b) No ( )

12) Now a days DSP black rock fund provides the 100 % return so do you want to invest in this fund :

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