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A PROJECT REPORT ON
“THE STUDY OF CUSTOMER AWARENESS ON MUTUAL FUNDS”
At
ICICI SECURITIES
Submitted
In partial fulfillment of requirement of
Post graduate diploma in management
By
V. Sandeep Kumar
FPB1315.071
Under the Guidance of
Prof.Nagendra Hegde
Submitted to
INDUS BUSINESS ACADEMY, Bangalore
A PROJECT REPORT ON
“THE STUDY OF CUSTOMER AWARENESS ON MUTUAL FUNDS”
At
ICICI SECURITIES
Submitted
In partial fulfillment of requirement of
Post graduate diploma in management
By
V. Sandeep Kumar
FPB1315.071
Under the Guidance of
Prof.Nagendra Hegde
Submitted to
INDUS BUSINESS ACADEMY, Bangalore
2
DIRECTOR’S CERTIFICATE
This is to certify that the contents of this report titled “The study of Customer
Awareness on Mutual Funds” by…………………………………………………… Enrollment
no………………………….submitted to Indus Business Academy IBA, For the Award of
Post-Graduate Diploma in Management (Trimester-IV).This Report has not been
submitted either partly or fully to any other Institute, University for the Award of
any Degree/Diploma.
(DR. SUBHASH SHARMA)
Director,
Indus Business Academy,
Bangalore.
3
CERTIFICATE BY INTERNAL GUIDE
This is to certify that the contents of this report entitled “Customer Awareness on
Mutual Funds” by……………………………………………….Enrollment.no…………….………………
submitted to Indus Business Academy IBA,For the Award of Post-Graduate
Diploma in Management (Trimester-IV) is original Research work Carried out by
him, under my mentoring. I, hereby certify the authenticity of Data and Facts
mentioned in the report. This report has not been submitted either partly or fully
to any other Institute, University for the Award of any Degree/Diploma.
Professor,
Indus Business Academy,
Bangalore.
4
DECLARATION
I hereby declare that the project titled “The study of Customer Awareness on
Mutual Funds” submitted in partial fulfillment of the requirement of Post-
Graduation Diploma in Management in the SIP phase-1 in Indus Business Academy
is the outcome of original study and has not been submitted either partly or fully
to any other University or Institute forward of any degree or diploma.The
information submitted is true & original to best of my knowledge
V.SANDEEP KUMAR
FPB1315.071
ACKNOWLEDGEMENT
5
Sometimes it is not easy to express your emotions in words especially when
you have to say thanks to your parents for their constant undemanding love,
dedication, sacrifice, inspiring guidance, affectionate encouragement and never-
ending enthusiasm; with which this project would not have been completed
successfully.
I would like to thank the college management for Scheduling Summer Internship
Program for six months, which is very helpful to get the corporate exposure and
also to implement theoretical knowledge explained in classes.
Secondly my mentor Prof.Nagendra Hegde. I am very thankful for his continuous
support throughout the project and also for rectifying my mistakes.
Last but not least, I wish to express my sincere gratitude to the authority of ICICI
Securities Limited for providing me an opportunity to work with them. I am
especially thankful to Mr. Pavan L Janagi (Branch Manager), Mr.Kishan Vasista
(Training Manager), Ms.Kushuboo Singh and Mr. Rajeshwar Goud (Relationship
Managers) for providing me opportunity, knowledge and all the vital information
on which this project report stands. The support provided to me during my project
was overwhelming and the work environment was conducive to work.
I would like to thank many others who have been associated with work directly or
indirectly.
V SANDEEP KUMAR
FPB1315.071
CONTENTS
6
RANK PARTICULARS PAGE NO.
1 Executive Summary 9 -11
2 History of MF Industry 12 to 38
3 Emerging issues 12-16
4 Mutual fund concept 17-19
5 Working, Types of MF 20-33
6 Comparison with MF 34-38
7 Company profile 39 to 50
8 Porter’s five force for MF
industry
42-45
9 Recognitions 46-50
10 Research methodology 51,52
11 Analysis & Interpretation 53-64
12 Findings 65
13 Recommendation 66
14 Conclusion 67
15 Bibliography 68
7
16 Annexure 69-73
Executive Summary
8
In few years Mutual Funds has emerged as a tool for ensuring one’s
financial well-being. Mutual Fund have not only contributed to India’s growth story
but have also helped families tap into success of Indian industry. As information
and awareness is rising more & more people are enjoying the benfits of investing
in Mutual Funds. The main reason the no. of retail Mutual Fund investors remains
small is that nine out of ten people with incomes in India do not know that Mutual
Fund exists. But once people are aware of Mutual Fund investment
oppurtunities,the member who decide to invest in Mutual Fund increases as to
many as one in five people.
The trick for converting a person with no knowledge on Mutual Funds to new
Mutual Fund customer is to understand which of the potential investors are more
likely to buy MF and use the right arguments in sales process that customer will
accept as important &Relavent to their decision
The project had a great learning experience and at same time it has scope to
explore to the corporate world. The analysis and advice presented in this project
report is based on Market Research on saving and investment practices of
investors for investment in MF.This report will help to know about investor
preferences in MF means are they prefer any particular AMC,or by ICICI only.
Which type of product they prefer, which option (Growth&Dividend) they prefer
to investment strategy that follow SIP (systematic investment planning) or one
time plan.
This project is divided into two parts
9
The first part gives insight about MF and its various aspects, the company profile,
objectives of study, Research methodology. One can have a brief knowledge about
MF and its basics through the project.
The second part of project consists of data and its analysis collected through
survey done on 50 clients having trading accounts with ICICI direct.
OBJECTIVES OF THE STUDY
1. The objective of the research is to study and analyze the awareness level of
investors of mutual funds.
2. To measure the satisfaction level of investors regarding mutual funds.
3. An attempt has been made to measure various variable’s playing in the minds of
investors in terms of safety, liquidity, service, returns, and tax saving
4. To get insight knowledge about mutual funds
5. To know the mutual funds performance levels in the present market
6. To analyze the comparative study between other leading mutual funds in the
present market
7. To measure the satisfaction level of investors regarding Mutual Funds
8. To get insight knowledge on Mutual Funds
10
METHODOLOGY FOLLOWED:
ICICI Management gave us a demo-how the MF will work and what all the
benefit’s investing in MF through ICICI and followed by another demo regarding
the usage of online portal. After these two demos one feedback form will come
which contains 13 questions regarding their investment decisions.
500 clients with their details had been mapped, based on this primary data the
project has been carry forwarded.
To meet the Clients in their respective places as they mentioned in phone and
taken feedback of customers who were coming at ICICI direct branch.
The scope of the project is to Demonstrate ICICI Direct’s online platform, M.F
investment and seek customer’s insight on their savings pattern
This project covers the topic “The study of Customer Awareness on Mutual
Funds”. The data collected has been well organized and presented.
I hope the research findings and conclusion will be of use.
INTRODUCTION
11
AN OVERVIEW ON MUTUAL FUNDS:-
HISTORY OF MUTUAL FUNDS:-
The origin of mutual fund industry in India is with the introduction of the concept
of mutual fund by UTI in the year 1963. Though the growth was slow, but it
accelerated from the year 1987 when non-UTI players entered the industry. In the
past decade, Indian mutual fund industry had seen dramatic improvements, both
quality wise as well as quantity wise. Before, the monopoly of the market had seen
an
1. First Phase - 1964-87
Unit Trust of India (UTI) was established on 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.
2. Second Phase - 1987-1993
(Entry of Public Sector Funds) Entry of non-UTI mutual funds. SBI Mutual Fund
was the first 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),
12
Bank of Baroda Mutual Fund (Oct 92).LIC in 1989 and GIC in 1990. The end of 1993
marked Rs.47, 004 as assets under management
3. 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, 1993was 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, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under
management was way ahead of other mutual funds.
4. Fourth Phase - since February 2003
This phase had bitter experience for UTI. It was bifurcated into two separate
entities. One is the Specified Undertaking of the Unit Trust of India with AUM of
Rs.29, 835 crores (ason January 2003). The Specified Undertaking of Unit Trust of
13
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 Ltd, sponsored by SBI, 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 AUM 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.
14
Emerging Issues of the Mutual Fund Industry in India:
Performance of Mutual Funds in India
Let us start the discussion of the performance of mutual funds in India from the
day the concept of mutual fund took birth in India. The year was 1963. Unit Trust
of India invited investors or rather to those who believed in savings, to park their
money in UTI Mutual Fund. For 30 years it goaled without a single second player.
Though the 1988 year saw some new mutual fund companies, but UTI remained
in a monopoly position. The performance of mutual funds in India in the initial
phase was not even closer to satisfactory level. People rarely understood, and of
course investing was out of question.
But yes, some 24 million shareholders was accustomed with guaranteed high
returns by the beginning of liberalization of the industry in 1992. This good record
of UTI became marketing tool for new entrants. The expectations of investors
touched the sky in profitability factor. However, people were miles away from the
preparedness of risks factor after the liberalization. The Assets under Management
of UTI was Rs. 67bn. by the end of 1987.
Let’s concentrate about the performance of mutual funds in India through figures.
From Rs.67bn. the Assets under Management rose to Rs. 470 bn. in March 1993
and the figure had a three times higher performance by April 2004. It rose as high
as Rs. 1,540bn.
The net asset value (NAV) of mutual funds in India declined when stock prices
started falling in the year 1992. Those days, the market regulations did not allow
portfolio shifts into alternative investments. There were rather no choices apart
15
from holding the cash or to further continue investing in shares. One more thing to
be noted, since only closed-end funds were floated in market, the investors
disinvested by selling at a loss the in the secondary market. The performance of
mutual funds in India suffered qualitatively. The 1992 stock market scandal, the
losses by disinvestments and of course the lack of transparent rules in the where
about rocked confidence among the investors. Partly owing to a relatively weak
stock market performance, mutual funds have not yet recovered, with funds
trading at an average discount of 1020 percent of their net asset value.
The supervisory authority adopted a set of measures to create a transparent and
competitive environment in mutual funds. Some of them were like relaxing
investment restrictions into the market, introduction of open-ended funds, and
paving the gateway for mutual funds to launch pension schemes. The measure was
taken to make mutual funds the key instrument for long-term saving. The more
the variety offered, the quantitative will be investors.
At last to mention, as long as mutual fund companies are performing with lower
risks and higher profitability within a short span of time, more and more people
will be inclined to invest until and unless they are fully educated with the dos and
don’ts of mutual funds
16
MUTUAL FUND CONCEPT
A Mutual Fund is a trust that pools the savings of a number of investors who share
a common financial goal. The money thus collected is then invested in capital
market instruments such as equities, debentures and other securities. The income
earned through these investments and the capital appreciation realized (after
deducting the expenses and profits of mutual fund managers) is shared by its unit
holders in proportion to the number of units owned by them. Thus a Mutual Fund
strives to meet the investment needs of the common man by offering him or her
opportunity to invest in a diversified, professionally managed basket of securities
at a relatively low cost. The small savings of all the investors are put together to
increase the buying power and hire a professional manager to invest and monitor
the money. Anybody with an surplus of as little as a few thousand rupees can
invest in Mutual Funds.
Mutual funds play vital role in resource mobilization and their efficient allocation
in a transitional economy like India. Economic transition is usually marked by
changes in the financial mechanism, institutional integration, market regulation,
re-allocation of savings and investments, and changes in the inter-sector
relationships. These changes often imply negativity which shakes investor’s
confidence in the capital market. Mutual funds perform a crucial task as efficient
alligators of resources in such a transitional period.
17
In Fund house, the fund manager is experienced person and he knows moving of share prices in stock market by speculation so, he will invest in that shares on behalf of you for getting good returns in short-span of time- Professional management
The fund manager will diversify your portfolio by investing your money in different sectors because if one sector is not doing well other will do compensation, As no two sectors run in losses at a time-Diversification
18
19
WORKING OF MUTUAL FUND:-
A Mutual Fund is a collection of stocks, bonds, or other securities owned by a
group of investors and managed by a professional investment company. For an
individual investor to have a diversified portfolio is difficult. But he can approach
to such company and can invest into shares. Mutual funds have become very
popular since they make individual investors to invest in equity and debt securities
easy. When investors invest a particular amount in mutual funds, he becomes the
unit holder of corresponding units. In turn, mutual funds invest unit holder’s
money in stocks, bonds or other securities that earn interest or dividend. This
money is distributed to unit holders. If the fund gets money by selling some stocks
at higher price the unit holders also are liable to get capital gains.
20
TYPES OF MUTUAL FUND SCHEMES:-
Mutual funds can be done depending upon various factors and variables, such as,
maturity period, investment objectives etc... funds schemes again can be classified
into three broad categories: equity schemes funds invest in three broad categories
of assets—stocks, bonds and cash. Depending upon the asset mix, mutual
Classification of mutual, hybrid schemes, and debt schemes. However the
following are the various types of mutual funds available to the investors.
Schemes according to Maturity Period:
21
A mutual fund can be classified into close-ended or open-ended scheme
depending upon its maturity period:
Open-ended fund/scheme:
An open-ended fund is one that is available for subscription and repurchase on
continuous basis. These schemes do not have a fixed maturity period. Investors
can conveniently buy and sell units at Net Asset Value(NAV) related prices which
are declared on a daily basis. The key feature of open-end scheme is liquidity.
Close-ended fund/scheme:
A close-ended scheme has a stipulated maturity period e.g. 5-7 years. The fund is
open for subscription only during a specified period at the time of launch of the
scheme. Investors can invest in the scheme at the time of initial public issue and
thereafter they can buy or sell the units of the scheme on the stock exchanges
where the units are listed. In order to provide an exit route to the investors, some
close ended funds give an option of selling back the units to mutual funds through
periodic repurchase at NAV related prices. SEBI regulation stipulated that at least
one of the two exit routes is provided to the investors i.e. either repurchase facility
or through listing on stock exchanges. These mutual funds schemes disclose NAV
generally on weekly basis.
22
Schemes according to Investment Objectives:
A scheme can also be classified as growth scheme, income scheme, or balanced
scheme considering its investment objective. Such schemes may be open-ended or
close-ended schemes as described earlier. Such schemes may be classified mainly
as follows:
Growth or equity oriented Scheme:
The aim of growth funds is to provide capital appreciation over the medium to
long term. Such schemes normally invest a major part of their corpus in equities.
Such funds have comparatively high risk. These schemes provide different options
to the investors like dividend option, capital appreciation etc... and the investors
may choose an option depending on their performance. The investors must
indicate the option in the application form. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for
investors having a long term outlook seeking appreciation over a period of time.
Income / debt oriented schemes:
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate
debentures, Govt. securities and money market instruments. Such funds are less
risky compared to equity schemes. These funds are not affected because of
fluctuations in equity markets. However, opportunities of capital appreciation are
23
also limited in such funds. The NAVs of such funds are affected because of change
in interest rates in the country. If the interest fall, NAVs of such funds are likely to
increase in the short run and vice-versa. However, long term investors may not
bother about these fluctuations.
Balanced Funds:
The aim of balanced funds is to provide both growth and regular income as such
schemes invest both in equity and fixed income securities in the proportion
indicated in their offer document. These are appropriate for the investors looking
for moderate growth. They generally invest 40% to 60% in equity and debt
instruments. These funds are also affected because of fluctuation in share prices in
the stock markets. However, NAVs of such funds are likely to be less volatile
compare to pure equity funds.
Money market or liquid funds:
These funds are income funds and their aim is to provide easy liquidity,
preservation of capital and moderate income. These schemes invest exclusively in
safer short-term instruments such as treasury bills, certificates of deposits,
commercial paper and inter-bank call money, government securities, etc. Returns
on these schemes fluctuate much less compared to other funds. These funds are
appropriate for corporate and individual investors as a means to park their surplus
funds for short periods.
24
Gilt funds:
These funds invest exclusively in Govt. securities. Govt. securities have no default
risk. NAVs of these schemes also fluctuate due to change in interest rates and
other economic factors as is the case with income or debt oriented schemes.
Index funds:
Index funds replicate the portfolio of a particular index such as the BSE sensitive
index, S&P NSE-50 index (Nifty) etc. These schemes invest in the securities in the
same weightage comprising of an index. The NAVs of such schemes would rise or
fall in accordance with the rise or fall in the index, though not exactly by same
percentage due to some factors known as “tracking error” in technical terms.
Necessary disclosures in this regards are made in the offer document of the
mutual fund scheme. These are also exchange traded index funds launched by the
mutual funds which are traded on the stock exchange.
ELSS:
Equity linked savings scheme (ELSS) are equity funds floated by mutual funds. This
scheme is suited for young people as they have the ability to take on higher risk.
25
The ELSS funds should invest more than 80 per cent of their money in equity and
related instruments. It is ideal to invest in them when the markets are down.
These funds are now open all the year round. The other way of investing in these
funds could be a systematic investment, which essentially means investing a small
sum regularly (monthly or quarterly). It is a market-linked security and therefore
there will be risks accordingly.
HOW RISKY YOUR MUTUAL FUND IS:-
Investors always judge a fund by the return it gives, never by the risk it took. In any
historical analysis of a mutual fund, the return is remembered but the risk is
quickly forgotten. So a fund manager may have used very high-risk strategies (that
are bound to fail disastrously in the long run), hoping that his wins will be
remembered (as they often are), but the risk he took will soon be forgotten.
WHAT IS RISK?
Risk can be defined as the potential for harm. But when anyone analyzing mutual
funds uses this term, what is actually being talked about is volatility. Volatility is
nothing but the fluctuation of the Net Asset Value (price of a unit of a fund). The
higher the volatility, the greater the fluctuations of the NAV. Generally, past
volatility is taken as an indicator of future risk and for the task of evaluating
mutual fund, this is an adequate (even if not ideal) approximation.
Defining Mutual fund risk:
26
Mutual funds face risks based on the investments they hold. For example, a bond
fund faces interest rate risk and income risk. Bond values are inversely related to
interest rates. If interest rates go up, bond values will go down and vice versa.
Bond income is also affected by the change in interest rates. Bond yields are
directly related to interest rates falling as interest rates fall and rising as interest
rise. Income risk is greater for a short-term bond fund than for a long-term bond
fund.
Similarly, a sector stock fund (which invests in a single industry, such as
telecommunications) is at risk that its price will decline due to developments in its
industry. A stock fund that invests across many industries is more sheltered from
this risk defined as industry risk.
Following is a glossary of some risks to consider when investing in mutual funds:
CALL RISK:-
The possibility that falling interest rates will cause a bond issuer to redeem or call
its high-yielding bond before the bond's maturity date.
COUNTRY RISK:-
27
The possibility that political events (a war, national elections), financial problems
(rising inflation, government default), or natural disasters (an earthquake, a poor
harvest) will weaken a country's economy and cause investments in that country
to decline.
CREDIT RISK:-
The possibility that a bond issuer will fail to repay interest and principal in a timely
manner. Also called default risk.
CURRENCY RISK:-
The possibility that returns could be reduced for Americans investing in foreign
securities because of a rise in the value of the U.S. dollar against foreign
currencies. Also called exchange-rate risk.
INCOME RISK:-
The possibility that a fixed-income fund's dividends will decline as a result of falling
overall interest rates.
INDUSTRY RISK:-
28
The possibility that a group of stocks in a single industry will decline in price due to
developments in that industry.
INFLATION RISK:-
The possibility that increases in the cost of living will reduce or eliminate a fund's
real inflation-adjusted returns.
INTEREST RATE RISK:-
The possibility that a bond fund will decline in value because of an increase in
interest rates.
MANAGER RISK:-
The possibility that an actively managed mutual fund's investment adviser will fail
to execute the fund's investment strategy effectively resulting in the failure of
stated objectives.
MARKET RISK:-
The possibility that stock fund or bond fund prices overall will decline over short or
even extended periods. Stock and bond markets tend to move in cycles, with
periods when prices rise and other periods when prices fall.
29
PRINCIPAL RISK:-
The possibility that an investment will go down in value, or "lose money," from the
original or invested amount.
HOW RISK IS MEASURED:-
There are two ways in which you can determine how risky a fund is.
STANDARD DEVIATION:-
Standard Deviation is a measure of how much the actual performance of a fund
over a period of time deviates from the average performance. “Since Standard
Deviation is a measure of risk, a low Standard Deviation is good.”
SHARPE RATIO:-
This ratio looks at both, returns and risk, and delivers a single measure that is
proportional to the risk adjusted returns.“Since Sharpe Ratio is a measure of risk-
adjusted returns, a high Sharpe Ratio is good."
30
HOW TO CHECK THE FUND’S RISK:-
So how would you figure out how risky a mutual fund is?
Value Research a mutual fund research outfit, carries out a rating every month
which is also carried on rediff.com. If you would like to take a look at the latest
ratings, click on the relevant month viz March, April, May.
In this rating, each fund is given a star. The funds with a 5-star( )
rating are the best. Those with a 1-star( ) rating are the worst.
This star rating is based on risk-adjusted return. In a very simple way, it gives
investors an understanding of whether a fund is taking an acceptable amount of
risk in generating the kind of returns it is doing.
31
Risk Return Matrix in different sources of investments:
THINGS TO BE SEE WHILE INVESTING IN MUTUAL FUNDS:-
1. Don't just look at the NAV, also look at the risk:
Alliance Buy India and Alliance Equity both have 3 stars. That does mean their NAV
is identical. In fact, the NAV of Alliance Equity is 91.66 while that of Buy India is
16.05.
32
However, Alliance Buy India took an average risk and delivered an average return,
while Alliance Equity took an above average risk to get the above average
returns. Hence their stars are identical, despite one having a higher NAV.
2. Higher rating does not mean better returns:
A fund with more stars does not indicate a higher return when compared with the
rest. All it means is that you will get a good return without putting your money at
too much risk.
Birla Equity Plan has a 4-star rating while Alliance Tax Relief '96 has a 2-star rating.
However, the fund with the 2-star rating has a higher NAV (131.96) than the one
with the 4-star rating (39.37).
3. Higher rating does not mean more risk:
Birla Advantage has an NAV of 67.09 while Franklin India Prima has an NAV of
122.92. This does not necessarily mean that Franklin India Prima is offering a
higher risk since the return is higher. In fact, according to our ratings, Franklin India
Prima is a 5-star fund while (risk is below average) while Birla Advantage is a 2-star
fund (risk is above average).
On a final note:
When you decide to invest in a mutual fund, you must look at risk and return.
Always ask yourself one question: What are the chances of my losing money?
Do not get misled by high returns. You could also end up losing a substantial part
of your savings.
33
COMPARISON BETWEEN MUTUAL FUND & OTHER INVESTMENTS
Mutual funds offer several advantages over investing in individual stocks.
For example, the transaction costs are divided among all the mutual fund
shareholders, which allows for cost-effective diversification. Investors may also
benefit by having a third party (professional fund managers) apply expertise and
dedicate time to manage and research investment options, although there is
dispute over whether professional fund managers can, on average, outperform
simple index funds that mimic public indexes.
Whether actively managed or passively indexed, mutual funds are not
immune to risks. They share the same risks associated with the investments made.
If the fund invests primarily in stocks, it is usually subject to the same ups and
downs and risks as the stock market.
SHARE CLASSES:-
Many mutual funds offer more than one class of shares. For example, you
may have seen a fund that offers "Class A" and "Class B" shares. Each class will
invest in the same pool (or investment portfolio) of securities and will have the
same investment objectives and policies. But each class will have different
shareholder services and/or distribution arrangements with different fees and
expenses.
34
These differences are supposed to reflect different costs involved in
servicing investors in various classes; for example, one class may be sold through
brokers with a front-end load, and another class may be sold.
INDEX FUNDS VS. ACTIVE MANAGEMENT:-
An index fund maintains investments in companies that are part of major
stock (or bond) indices, such as the S&P 500, while an actively managed fund
attempts to outperform a relevant index through superior stock-picking
techniques. The assets of an index fund are managed to closely approximate the
performance of a particular published index.
Since the composition of an index changes infrequently, an index fund
manager makes fewer trades, on average, than does an active fund manager. For
this reason, index funds generally have lower trading expenses than actively
managed funds, and typically incur fewer short-term capital gains which must be
passed on to shareholders.
BONDS FUNDS:-
Bond funds account for 18% of mutual fund assets. Types of bond funds
include term funds, which have a fixed set of time (short-, medium-, or long-term)
before they mature. Municipal bond funds generally have lower returns, but have
tax advantages and lower risk. High-yield bond funds invest in corporate
bonds, including high-yield or junk bonds. With the potential for high yield, these
bonds also come with greater risk.
35
MONEY MARKET FUNDS:-
Money market funds hold 26% of mutual fund assets in the United States.
Money market funds entail the least risk, as well as lower rates of return. Unlike
certificates of deposit (CDs), money market shares are liquid and redeemable at
any time. The interest rate quoted by money market funds is known as the 7 Day
SEC Yield.
FUNDS OF FUNDS;-
Funds of funds (FoF) are mutual funds which invest in other underlying
mutual funds (i.e., they are funds comprised of other funds). The funds at the
underlying level are typically funds which an investor can invest in individually. A
fund of funds will typically charge a management fee which is smaller than that of
a normal fund because it is considered a fee charged for asset allocation services.
The fees charged at the underlying fund level do not pass through the
statement of operations, but are usually disclosed in the fund's annual report,
prospectus, or statement of additional information. The fund should be evaluated
on the combination of the fund-level expenses and underlying fund.
36
EQUITY FUNDS:-
Equity funds, which consist mainly of stock investments, are the most
common type of mutual fund. Equity funds hold 50 percent of all amounts
invested in mutual funds in the United States. Often equity funds focus
investments on particular strategies and certain types of issuers.
Growth vs Value:
Another distinction is made between growth funds, which invest in stocks of
companies that have the potential for large capital gains, and value funds, which
concentrate on stocks that are undervalued. Value stocks have historically
produced higher returns; however, financial theory states this is compensation for
their greater risk. Growth funds tend not to pay regular dividends.
Income funds tend to be more conservative investments, with a focus on stocks
that pay dividends. A balanced fund may use a combination of strategies, typically
including some level of investment in bonds, to stay more conservative when it
comes to risk, yet aim for some growth direct to the public with no load but a
"12b-1 fee" included in the class's expenses (sometimes referred to as "Class
shares). Still a third class might have a minimum investment of $10,000,000 and be
available only to financial institutions (a so-called "institutional" share class).
In some cases, by aggregating regular investments made by many individuals, a
retirement plan (such as a 401 (k) plan) may qualify to purchase "institutional"
37
shares (and gain the benefit of their typically lower expense ratios) even though no
members of the plan would qualify individually. As a result, each class will likely
have different performance results.
A multi-class structure offers investors the ability to select a fee and expense
structure that is most appropriate for their investment goals (including the length
of time that they expect to remain invested in the fund).
Load and expenses:
A front-end load or sales charge is a commission paid to a broker by a mutual fund
when shares are purchased, taken as a percentage of funds invested. The value of
the investment is reduced by the amount of the load. Some funds have a deferred
sales charge or back-end load. In this type of fund an investor pays no sales charge
when purchasing shares, but will pay a commission out of the proceeds when
shares are redeemed depending on how long they are held. Another derivative
structure is a level '" load fund, in which no sales charge is paid when buying the
fund, but a back-end load may be charged if the shares purchased are sold within a
year.
38
COMPANY PROFILE:-
ICICI Securities Ltd is an integrated securities firm offering a wide range of services
including investment banking, institutional broking, retail broking, private wealth
management, and financial product distribution.
ICICI Securities sees its role as 'Creating Informed Access to the Wealth of the
Nation' for its diversified set of client that include corporates, financial institutions,
high net-worth individuals and retail investors.
Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in
India and global offices in Singapore and New York.
ICICI Securities Inc., the step down wholly owned US subsidiary of the company is a
member of the Financial Industry Regulatory Authority (FINRA) / Securities
Investors Protection Corporation (SIPC). ICICI Securities Inc. activities include
Dealing in Securities and Corporate Advisory Services in the United States. ICICI
Securities Inc. is also registered with the Monetary Authority of Singapore (MAS)
and operates a branch office in Singapore.
Anup Bagchi is the Managing Director and CEO of ICICI Securities, a leading firm in
the capital markets space in the country. Its Investment Banking team helps raise
capital for India Inc – both equity and debt – both publicly and privately placed. In
the secondary market, its broking teams cover both, institutional and retail clients
with ICICIdirect.com enjoying significant market leadership.
39
Prior to this, Mr. Bagchi was the Executive Director at ICICI Securities Ltd. He was
responsible for the development and business growth of the retail broking,
distribution of retail financial products, and wealth management services.
Mr. Bagchi pioneered seamless online broking in India through ICICIdirect.com, a
leading online broking platform with over 2 million customers.
The firm has been winning the prestigious Outlook Money - India’s Best e-
Brokerage House for the past seven consecutive years. The e-brokerage firm also
won the CNBC AWAZ Consumer Award for the Most Preferred Brand of Financial
Advisory Services.
Prior to ICICI Securities, Mr. Bagchi was the head of International Retail Banking
Group (IRBG) of ICICI Bank Ltd, the second largest bank in India, where he was
responsible for driving profits and pursuing retail focus in the International
banking division.
Prior to IRBG, he had handled the retail liabilities raising and third party
distribution in ICICI Bank and was instrumental in making it the leader in retail
liability raising and third party distributor.
During his tenure of 17 years with ICICI Bank, Mr. Bagchi has held many key
positions in field of Retail Banking, Corporate Banking and Treasury.He is currently
the Director of ICICI Securities Inc., Comm Trade Services Limited, Financial
Planning Standards Board of India.
Mr. Bagchi has been honored with The Asian Banker Promising Young Banker
Award as well as Business Today has recognized him as one of India's Hottest
40
Young Executives. Mr Bagchi holds a Management degree in Finance from IIM,
Bangalore and also an engineering degree from IIT, Kanpur.
The advantages with ICICI direct are
1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts
are from ICICI and very well integrated. This feature makes ICICI the most
interesting player in online trading facility. There is absolutely no manual interfere
require. This is truly online trading environment.
2. Unlike most of the online trading companies in India which require transferring
money to the broker's pool or towards deposits, at ICICIDirect you can manage
your own demat and bank accounts through ICICIdirect.com. Money from selling
stock is available in ICICI bank account as soon as the ICICIDirect receive it.
3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes
all from one website. General Insurance is also available from ICICI Lombard.
4. Trading is available in both BSE and NSE.
The disadvantages with ICICI DIRECT are
1. ICICIDirect brokerage is high and not negotiable.
2. ICICIDirect doesn't offer commodity trading. With ICICI Trading account you cannot
trade at MCX or NCDEX.
3. With ICICIdirect.com e-Invest account(3-IN-1 concept), the Demat Account has to
be opened with ICICI Bank Ltd as the Depository Participant (DP) and the Bank
Account has to be opened with ICICI Bank Ltd. as the Banker.
41
PORTER’S FIVE FORCE MODEL FOR MF INDUSTRY
42
SuppliersWeb MaintainerMsclCsdlNSEBSEMCX
POTENTIAL ENTERANTInvestment Various Banks GeojitCiphered Securities Ltd.Refco Group Ltd.
BuyersSmall investorsFranchise/businessMF CompaniesHUF
SubstitutesStock exchangesInsuranceBank F.D.
CompetitorsICICI web trade ltd.Kotak securities ltdHDFC securities ltdINDIAN BULLS etc.
Suppliers
MCX & NCDEX are stock exchanges which trade in commodities and derivatives.
Here again stock broking have to follow rules and regulations by SEBI.
Web maintainers are companies which maintain web sites & technical aspects of
the same. Here stock broking houses like SSKI can have more bargaining power
due to stiff competition among web companies.
Web maintainers are companies who make and maintain software’s for stock
broking houses. If say for example stock broking houses switches over to other
web maintainers then that company cannot understand the mechanisms of
software’s. So it is quite high switching cost.
Competitors
The company is facing the competition from local as well as national level players.
The local players provide facility for off-line trading while the national players like
ICICIdirect.com and Kotakstreet.com, HDFC security provide online trading
services.
There are also other big names like India bulls , Motilal Oswald, 5paisa and
Marwadi encircles the company from both the sides by providing online and off-
line trading with competitive services.
43
Buyers
There are various types of investors who trade through stock broking houses like
SSKI, which includes investors like small investors, medium net worth investors,
business partners, institutional investors and mutual fund companies.
Here the bargaining power of stock broking houses depends on how big the
investor is.
So here we can say that bargaining power of stock broking houses is high in case of
small investors & HUF.
While the bargaining power is moderate in case of HNI (High New Worth
Investors)/ MNI’s (Medium Net Worth Investors) and business partners.
But the in case of mutual companies and institutional investors bargaining power
is less.
Substitutes
Here substitute are such instruments which can be used instead of investing in
shares.
The instruments like Bank FD, Insurance, and Stock exchanges are the substitutes.
44
If the use of this instrument increases this may be disadvantage for the stock
broking houses.
The companies and banks which are having these instruments can plunge into this
industry.
Potential Entrants
The potential entrants in like Invest mart, Geojit and Cipher which are coming in
near future to Rajkot city.
Nationalized banks are also thinking to enter in this field by trying up with broking
houses. E.g. Bank of Baroda.
45
RECOGNITIONS
Retail
ICICI Securities won the Award for Outstanding Social Impacts at the Global
Sustainability Leadership Awards 2014 These awards recognize institutions for
their contribution to the society in their domain as well as businesses that deliver
products and services in ways that takes full account of their responsibility
towards the communities they touch.
"MOST ADMIRED SERVICE PROVIDER IN FINANCIAL SECTOR ? at the BANKING
FINANCIAL SERVICES & INSURANCE AWARDS 2014 presented by ABP News.
ICICIdirect.com, won the Outlook Money ' Best e- Brokerage Award' ninth time in
a row. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009, 2010,
2011, and 2012.
ICICIdirect.com won the Mobbys award for the "Best Mobile application in
Mobile Trading".
ICICI Securities Business Partners has been conferred the Franchise India Awards
2013, for being the 'Franchisor of the year' in the Financial Services category.
ICICIdirect.com, won the award for Innovation at Banking Frontiers Finnoviti
Awards 2013. The award was conferred on ICICIDirect' for its `Valid Till Cancel
46
Order' (VTC ) facility, which was awarded amongst the top 3 innovations in BFSI
industry by 'Peer Voting'.
ICICI Securities won the Outlook Smart use Technology eRetailer of the year
2013 conferred by FIHL in association with HomeShop18.com.
ICICIdirect.com won the 'Stock Broker of the Year' award at the Money Today
FPCIL Awards 2012
ICICI Securities Business Partners (Sub Broker channel) won the 'Franchisor of the
Year' at the Franchise Awards 2012 for the fourth time in a row.
ICICI Securities won the 'BSE IPF D&B Equity Broking Awards 2012' under two
categories:
o Best Equity Broking House - Cash Segment
o Largest E-Broking House
ICICI Securities won the Chief Learning Officer Award from World HRD Congress
for Innovation in Learning category.
ICICI Securities won the Grand Jury Award for 'Commendable performance by
National Financial Advisor (Retail) - Online' at the CNBC TV 18 - Financial Advisor
Awards 2011. The awards recognises India's best Financial Advisors.
ICICI Securities Business Partners (Sub Broker channel) won the 'Franchisor of the
Year at the Franchise Awards 2011', third time in a row.
ICICI Securities was the winner of the'Smart use Technology eRetailer of the year'
2012 award conferred by Franchise India in association with UTV Bloomberg for
the first time.
47
ICICIdirect.com, won the Outlook Money ' Best e- Brokerage Award' seventh time
in a row. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009 and
2010.
ICICI Securities' Business Partners (Sub Broker channel) won the 'Franchisor of the
Year 2011' for the third consecutive year.
Anup Bagchi, MD & CEO has been honoured with the Zee Business 'Industry
Newsmaker Award 2010' for his tremendous and unmatched contribution in the
field of Finance
Pankaj Pandey, Head- Research - ICICIdirect has won the Zee Business Best Market
Analyst 2010 award in the Equities Fundamental Category
CMO Asia Awards for Excellence in Branding and Marketing 2010:
o Brand Leadership Award (overall)
o 'Campaign of the Year' for the Trade Racer Campaign
o Brand Excellence in Banking and Financial Services for the store format
o Award for Brand Excellence in the Internet Business
Franchisor of the year award 2009
Retail concept of the year awards 2009
Frost and Sullivan 2009 Award for Customer Service Leadership
ICICIdirect, the neighborhood financial superstore won the prestigious Franchise
India `Service Retailer of the Year 2008 award.
ICICIdirect has also won the CNBC AWAAZ 2007 Consumer Award for the Most
Preferred Brand of Financial Advisory Services.
Best Broker - Web 18 Genius of the Web Awards 2007
48
Institutional
ICICI Securities awarded the Asiamoney `Best Domestic Equity House' for 2012
Vikash Mantri tops The Wall Street Journal's Asia's Best Analysts survey in the
media sector for 2010
ICICI Securities has awarded as the Best Investment Bank 2008 by Global Finance
Magazine
The Corporate Finance group also was awarded a runner-up Best Merchant
Banker by Outlook Money in 2007.
ICICI Securities topped the Prime Database League Tables 2007 for money raised
through IPOs/FPOs.
The equities team was adjudged the 'Best Indian Brokerage House-2003' by
Asiamoney.
Technology
ICICI Securities recently won the Innovation Award for Oracle Fusion
Middleware.ICICI Securities has consistently demonstrated the best usage of
Oracle Tuxedo as an OLTP engine. These Asia-Pacific awards honor customers for
their optimum and innovative solutions using Oracle Fusion Middleware.
Fairfax Business Media has recognized ICICI Securities as a recipient of CIO 100
Asia award in 2013.
ICICI Securities has been awarded the NASSCOM IT Innovation Awards 2013.
CIO Masters for Collaboration and Cloud was awarded by Biztech2 (Network 18) in
2013.
ICICI Securities has been conferred by Dataquest in 2012
49
o Business Technology Excellence award
o Business Technology Innovation award
IDG India has recognized ICICI Securities as a recipient of CIO 100 award in 2009,
2010, 2011 and 2012, four times in a row.
IDG India has conferred the CIO Hall of Fame award in 2012.
EMC Transformers Award was presented for best use of IT to transform business
in 2012
CIO Masters for Virtualization was awarded by Biztech2 (Network 18) in 2012
ICICI Securities was the Bloomberg UTV CXO Awards Finalist for Best Utilization of
IT to Transform Business in 2011
ICICI Securities was conferred the Gold CIO award jointly by CIOL and Dataquest
at the Enterprise Awards 2010
ICICI Securities was the NASSCOM CNBC IT User Awards Finalist in 2009 and 2010
Indian Bank's Association Business Technology Awards was presented for Best
Online Trading Platform in 2006 and 2007
50
RESEARCH METHODOLOGY
The objectives of the study are as following:
Awareness of mutual funds in Indian market.
To identify the consumer behavior while selecting a fund.
To identify the consumer perception about mutual funds investing through ICICI
DIRECT.
To forward their Queries and get them solved.
The scope of the project is to Demonstrate ICICI Direct’s online platform, M.F
investment and seek customer’s insight on their savings pattern
ICICI DIRECT has taken an initiative of creating investor education program. ICICI
management made a Questionnaire. We have to call the clients mapped to us and
fix appointment to meet in their respective places and show the demo on mutual
funds and the usage of ICICI online portal to them and show that questionnaire
and make it fill by the client. Thus, that feedback which I’m taking is by primary
method. I have to interprate the data and give to my branch manager which help
for generating the business.
LIMITATIONS OF THE RESEARCH
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This research reflects on individual customers in Rajajinagar, Bangalore only. So
findings and suggestions given on the basis of this research cannot be extrapolated
to the entire population.
As sampling technique is convenient sampling so it may result in personal biased.
So perfect result cannot be achieved.
It take much time to go in different areas and fill up questionnaire so the timings
are also limited to make the Project.
To create hypothesis and make cross tabulation is little bit confusing technique so
it may be a limitation.
In India people are not much care full and educated regarding Investment plan so
to do this type of research is little hard.
Collection of data:
Primary data:- Survey methods:
This method was adopted because it helps to procuring data and detail
information from the respondents. Here I collected data by filling questionnaires,
directly talking to the respondents
Secondary data:
The secondary data also used in this project, which include various written
documents and other related information about the customer details in their
pivotal document-software used by ICICI DIRECT.
Sampling:
52
The sample of 50 clients having trading account with ICICI direct customers only
had been taken for the whole project and analysis had been explained on this
data.
ANALYSIS AND INTERPRETATION OF DATA
Analysis and Interpretation of Data
After a thorough study and analysis of the questionnaires, Feedback given by
clients some important and useful findings can be stated. These findings have
helped in a great way to come to the conclusion part of the project work.
By utilizing maximum usage of data,resource .The Pivotal is a software used by
ICICI direct from last four years where all the employees rely on it for getting
customer details, leads.
The following are the findings of consumer survey in ICICI DIRECT:
Consumer Survey Result: Total Respondents-- 50
NO.OF CONTACTS ASSIGNED 500
53
NO. OF CUSTOMERS CONTACTED 408
IN CONTACTED
WRONG NO.S 85
NOT REACHABLE/OUT OF COVERAGE 90
NOT IN CITY 40
NOT INTRESTED 110
INTRESTED 83
MEETINGS POSTPONE BY CLIENTS 25
POSTPONE BY ME AS DOONGLE PROBLEM 8
NO. OF CLIENTS MET 50
54
Most of the clients under the age of 30 are ready to take risks
Equity is the best suited investment in this particular age group
Above age group are interested in investing M.F,Insurance,Bonds
MALES/
AGE
CLIENTS FEMALES/AGE CLIENTS
25+ 45 25+ 40
30+ 30 30+ 40
50 ABOVE 25 50 ABOVE 20
Interpretation based on the feedback given by clients
equities mutual funds insurance bonds
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NO.OF CONTACTS AS-SIGNED
NO. OF CUSTOMERS CONTACTED
WRONG NO.S
NOT REACHABLE/OUT OF COVERAGE
NOT IN CITY
NOT INTRESTED
INTRESTED MEETINGS POSTPONE BY CLIENTS
POSTPONE BY ME AS DOONGLE PROBLEM
NO. OF CLIENTS MET
Most of clients are working people.
Don’t have time to visit branches.
working 85
Non-working 15
Retired 10
Interpretation based on the feedback given by clients
online offline
People will see the brand name before investing
Because for benefit’s, assistance, Trust.
Brand loyality 40
Tax,other benfits 45
Support 15
56
Interpretation based on the feedback given by clients
57
Investment Brokerage clients
Equity ICICI 45
MF ICICI 30
Insurance others 25
equities mutual funds insurance bonds
People will use the online portal of ICICI for portfolio recommendations
Interpretation based on the feedback given by clients
Not interested in MF 40
Other brokers 40
More assistance from ICICI 20
Interpretation based on the feedback given by clients
58
People are more active until they run in losses
None of them trade, invest without assistance Unless they are fully
experienced
Interpretation based on the feedback given by clients
59
I use Internet or Online Banking I book Hotels online I buy movie tickets online I do not do any online
Most of the
investors will take
the help of financial advisor for tracking their portfolio
Interpretation based on the feedback given by clients
If the relationship Manager fail to answer the queries properly, Clients will ask
other one, who is capable of answering them.
The online portal will help the clients in different ways
60
monthly quarter six months year
Portfolio Monitoring 40
Capital Gains Statement 30
Ease of Purchase 30
Occupation:
Business man: Professional: Others:
16 16 18
Most of the people who don’t have proper knowledge on MF benefits are
feeling bank deposits as investments. Businessmen have rather more knowledge
about MF.
Place of their investment:
61
FROM
ICICI
OTHER
BROKERS
34 16
Reasons of not investing—not have proper knowledge about MF.
Once went into losses, and don’t want to start again-fear of past
Don’t have time in their busy schedule.
Awareness about Mutual Funds:
Yes No
38 12
Interpretation based on the feedback given by clients
62
YES NO
Reasons of investing in Mutual Funds:
Good return Safety and
security
Awareness Others
24 11 - 17
Reasons of not investing in Mutual Funds:
63
Risky affair Do not know
about MF
Not so popular
investment
vehicle
Others
22 8 12 2
The profile of the customers surveyed on this project are
Education
Post-graduates 28
Under-Graduates 22
Region-In Bangalore:
Near peenya 12
Near yeshwantpur 22
Near majestic 16
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Income level
Above & 40,000 8
Upto 30,000 22
Above 20,000 15
FINDINGS
60% Investors preferred to invest through financial advisors,25% investors
preferred to direct investment with AMC, and 15% through Bank.
Most of the people don’t have proper knowledge about the mutual funds and that
is why probably they don’t invest in mutual fund.
Most of the business men have proper knowledge about the mutual funds and as
result they invest in mutual fund very frequently.
Most of the respondents consider bank deposit as investment vehicle. They don’t
have clear cut idea about the difference between the savings and investment.
63% of the respondents keep their money in banks for return, 40% of the
respondents invest in insurance for tax benefits, 13% of the respondents invest for
risk hedging purpose, and 3% invest for not any specific reasons.
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More than half of the respondents have wrong perception about the mutual
funds. They feel mutual funds are very risky investment alternative
Study found that more young people are likely to involved in financial activities.
They more frequently visit banks and meet financial advisors. This is an
opportunity for mutual funds houses to attract these people.
More than 50% of surveyed persons willing to take high risk for high rate of return.
This indicates that riskier investment options can also attract big pool of money if
investors are properly convinced
RECOMMENDTIONS
After seeing the whole Data analysis and findings, the Recommendations for the
company are shown as below.
The company should give the knowledge regarding Mutual Fund through various
sources like more advertisement, TV programmes etc. about what it is? How it
works? What is its benefit for us with its advertisement or in programmes.
Because many people have heard about it but don’t know what it is?
The company should also attract the low Income people by showing them the
benefits of the liquidity funds for the short Term to attract them.
66
The company should also attract the customer through different schemes who
having knowledge about the Mutual Funds but not investing in Mutual Funds.
The company should give information regarding Tax benefit to Invest into Mutual
Fund.
The company should organize Free seminars to give information about Mutual
Fund and should distribute brochures having detail of schemes of Mutual Fund
CONCLUSION
We can infer from the analysis that the concept of mutual fund in the place
through ICICI is still in its growing phase. With the growing importance of mutual
fund in other areas in the country, this place is witnessing the same rate of growth
in mutual funds. Apart from these facts the following are some other important
facts which can easily be inferred from the paper---
Huge opportunities of Mutual funds exist in the ICICI. In short the market in this
city is a growing market
As because many companies exist in this market, competition is cut and throat.
67
Posters, banners or other promotional activities are rarely seen in this market.
Mutual fund companies do not have aggressive strategies.
Insurance products are and can be the main competitors of mutual funds
Most of the respondents are satisfied with their current return from their
investment. Most of the respondents neither do nor want to take risk in investing
their money in mutual funds.
BIBLIOGRAPHY
References
AMFI study material of NSE
Outlook ‘Money’- the layman’s guide to mutual funds
Brand reporter- Mutual Fund
68
Websites:
www.amfi.com
www.valueresearchonlineIndia.com
www.mutualfundIndia.com
www.icicidirect.com
Slideshare.com
ANNEXURE
FOLLOWING IS THE QUESTIONNAIRE, WHICH I TOOK RESPONSES FROM CLIENTS
AND HELPED FOR DOING THE PROJECT.
1. Have you invested in any of the following in last 12 months?
Equities
Futures & options
Mutual funds
Insurance
Corporate fixed deposits
Debentures/ bonds
Public provident fund
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Others
None
2. What is your preferred mode of investment?
Online
Offline
3. Have you invested in any of the following through ICICIdirect.com in the last 12
months?
Equities
Futures & options
Mutual funds
Insurance
Corporate fixed deposits
Debentures/ bonds
Public provident fund
Others
None
4. How do you prefer to make investments in each of the following?
Equity a. ICICI direct b. Other
Broker
Future and
options
a. ICICI direct b. Other
Broker
Mutual funds a. ICICI direct b. Banks c. Agents d. Other
70
Brokers
Insurance a. ICICI direct b. Banks c. Agents d. Other
Brokers
Corporate Fixed
deposit
a. ICICI direct b. Other
Brokers
c.
Directly
with
Company
Debentures/
Bonds
a. ICICI direct b. Banks c. Agents d. other
Brokers
5. Before the demo were you aware that you can invest in mutual funds through
ICICI direct?
Yes
No
6. What are the reasons for not investing in mutual funds through
ICICIdirect.com?
I need assistance to invest in MF through ICICIdirect.com
I need more knowledge on Mutual Funds before I invest
I am not interested as i invest through other brokers /distributors
I do not invest in Mutual Fund
7. Which of the following online transactions have you done in the past?
71
I buy movie tickets online
I book flights or Train online
I book Hotels online
I buy merchandise online
I use Internet or Online Banking
I do not do any online transactions
8. How often do you transact online in any of the above mentioned transactions?
Monthly
Once in a quarter
Once in 6 months
Once in a Year
9. Which medium of news information and analysis do you use to keep yourself
informed on investment products?
I discuss with my friends, family and or colleagues
I use financial websites for comparisons and news
I have financial advisor/Broker/MF distributor who updates me
I read media reports
I prefer to do my own research
10. How do you check the performance of all/any of your investments?
I update investment details on a third party portfolio website and check
regularly.
I ask my financial advisor/Broker/MF distributor to send me information.
My broker or bank provides me the information.
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Others
11. Would you consider switching your investment relationship to
ICICIdirect.com?
Yes
No
12. Which of the following site features did you find useful in the demo?
Capital Gains Statement
Portfolio Monitoring
Ease of purchase or redemption
Personalized research recommendations against holdings
Others
13. How would you rate the presentation and demonstration by our
representative?
Good
Bad
Needs Improvement
Neutral
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