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A study of investors perception towards the mutual fund investment

this file contains the survey of ICICI securities customers

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A study of investors perception towards the mutual fund investment

  1. 1. PROJECT REPORT ON “Mutual fund simplified” AT ICICI SECURITIES SUBMITTED TO: SHRI CHIMANBHAI PATEL INSTITUTE OF MANAGEMENT AND RESEARCH, AHMEDABAD (2013-2015) In partial fulfillment or the requirement for the degree of Master of Business Administrator Gujarat Technological University, Ahmadabad Prepared By HINGAL SATYADEV ENROLLMENT NO. :- 137680592120 1st Year (SEM II) Under the guidance of: Internal guide: External guide: Prof. Priyanka shah Mr. Shatis Bhalara 1 Mr. Bhumis Patel
  2. 2. DECLARATION I Hingal Satyadev student of Shri Chimanbhai patel institute of Management and Research, Ahmedabad hereby declare that the information presented in this report is correct to the best of my knowledge and has been prepared on the basis of information gained. It is collected and processed for utilizing my learning in the class of marketing management. The report is an original work and has not been presented anywhere before. Date: HINGAL SATYADEV 2 Roll no:44 ENROLLMENT NO. 137680592120 MBA (SEM II) Place: AHEMEDABAD
  3. 3. ACKNOWLEDGEMENT This successful project report has been made possible through the direct co-operation and guidance of various people for whom I wish to express my appreciation and 3 gratitude. First of all would like to express my sincere gratitude to our department that has given me an opportunity and special thanks to my guide PROF. PRIYANKA SHAH (Marketing Specialization) who have always provided me guideline whenever needed. I extend my heartiest thanks to Mr. Shatis Bhalara (BRANCH MANAGER OF ICICI SECURITIES RAJKOT BRANCH) and Mr. Bhumis Patel (TRAINER) who have given me an opportunity to work under him and help me to complete my project in ICICI SECURITIES. I would like to acknowledge the advice and suggestion of all the staff member of ICICI SECURITIES who have directly or indirectly helped me in the project. Last but not in least I offer my sincere thanks to my parents, cousin and friend for their encouragement. THANKING YOU HINGAL SATYADEV
  4. 4. EXECUTIVE SUMMARY It presents an introduction to the thesis and throws light on the introduction on mutual fund awareness of the customers and its current scenario. Further the chapter gives an overview of the mutual fund. And also deals with the research work done in the field of the different constructs identified for the present study. These include the measurement of the customer awareness. The research work done in the field of finance with a particular reference to the investment of mutual fund. Also presents an overview of the ICICI SECURITIES and the services of the ICICI SECURITIES. And also explain the Research Methodology adopted for carrying out the research work. And while examining customer awareness towards mutual fund, adapted Microsoft excel was used for the present study. All the constructs are exhibited below with their dimensions and shows the overview of pattern of analysis which is adopted, data collection method, sampling details, research instrument, construction of questionnaire, etc. And also summarizes the main findings and conclusions of the study. Moreover, in the light of these findings, appropriate suggestions have also been worked out. The references from which the data were collected. And also shows the various name of websites from which the data were collected. Annexure contains the questionnaire and the detailed report is enclosed herewith. 4
  5. 5. TABLE OF CONTENT NO. PARTICULAR PAGE NO. 1 INTRO. TO THE INDUSTRY 1 2 INTRO.TO THE COMPANY AND PRODUCT 9 3 LITERATURE REVIEW 14 4 RESEARCH METHODOLOGY 17 5 ANALYSIS 21 6 FINDINGS 42 7 CONCLUSION 44 8 SUGGESTIONS 46 9 BIBLIOGRAPY 48 10 ANNEXURE 50 5
  6. 6. CHAPTER NO. 1 INTRODUCTION OF INDUSTRY 6
  7. 7. HISTORY 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. Unit 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 corers of assets under management. 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). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987 followed by Canbank 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. 7
  8. 8. CURRENT MFs' AUM touches record-high of Rs 10 lakh crore in May. The mutual fund industry's assets under management have crossed Rs 10 lakh crore marks in May on the back of strong capital inflows and a surge in equity markets. The assets under management (AUM) of mutual funds rose to Rs 10.11 lakh crore in May from Rs 9.45 lakh crore in April, a growth of seven per cent, according to the data available with capital market regulator SEBI. This was also the third consecutive monthly increase in AUM of country's 45 fund houses. The AUM data for individual fund house is not being disclosed. Industry experts attributed the rise in AUM to a significant level of fund mobilization 8 as well as a sharp rally in equity markets.
  9. 9. STRUCTURE OF THE MUTUAL FUND Structure of Mutual Funds Source: - mutualstocks.blogspot.in 9
  10. 10. TYPES OF MUTUAL FUNDS Mutual funds can be classified in different ways according to their investment objectives, their constitution, as follows: 10 Equity Fund Debt / Income Funds Balanced Funds Liquid / Money Market Funds Closed Ended funds Open Ended Funds Load Funds No Load Funds
  11. 11. ADVANTAGES OF MUTUAL FUND INVESTMENTS 11 • Professional management • Diversification • Convenient administration • Return potential • Low cost liquidity • Transparency • Flexibility • Choice of scheme • Tax benefits
  12. 12. SCOPE OF MUTUAL FUND Scope of mutual fund has grown enormously over the years. In the first age of mutual funds when investment management companies started to offer mutual funds, choices were few. Even through people invested their money in mutual funds as these funds offered them diversified investment option for the first time. By investing in these funds they were able to diversify their investment in common stocks, preferred stocks, bonds and other financial securities. At the same time they also enjoyed the advantage of liquidity. With mutual funds, they got the scope of easy access to their invested funds on requirement. But in today’s world, scope of mutual funds has become so wide, that people sometimes take long time to decide the mutual fund type, they are going to invest in several investment management companies have emerged over the years who offer various types of mutual funds. Each type carrying unique characteristics and different beneficial features. To understand the board scope of mutual funds we need to discuss the main types of mutual funds that are normally offered by the mutual companies. 12
  13. 13. OBJECTIVES Here are some of the main forms of mutual fund objectives that we commonly see: • Growth Mutual Funds – Probably the most common mutual fund objective is investing for growth. What investor doesn’t want growth right? Even income investors want growth. A growth mutual fund simply wants his assets to appreciate over time. Growth mutual funds are generally invested primarily in the stock market and include stock market sectors from small to large cap. • Income Mutual Funds – The second more common mutual fund objective is investing for income. Many investors – typically those who are older and looking for cash flow to supplement their income – want an income distribution from their investment. Income mutual funds typically will distribute cash payments based on how many shares you own every month and the income generally varies over time. Most income mutual funds will invest in all types of bonds as well as some high quality dividend paying stocks and hybrids like preferred stocks. • Socially Responsible Mutual Funds – Some investors prefer to invest with social responsibility as their focus. There are various types of socially responsible mutual funds. A socially responsible mutual fund will either invest FOR an objective (for example green energy) or AGAINST an objective (avoiding alcohol, tobacco and firearms). • Sector Mutual Funds – Some mutual funds will invest only in a specific sector, such as biotechnology or healthcare. This provides them exposure to advances in smaller sections of the economy, such as when money floods into technology sectors due to the advent of a faster computer chip or more stable programming platform. There are many types of mutual funds, and classifying them by objective is just one method. Other methods include size of the assets invested in, style of the manager or the asset class exposure itself. 13
  14. 14. CHAPTER NO. 2 INTRODUCTION OF THE COMPANY 14
  15. 15. ICICI SECURITIES ICICI Securities empowers over 2 million Indians to seamlessly access the capital market with ICICIdirect.com, an award winning and pioneering online broking platform. The platform not only offers convenient ways to invest in Equity, Derivatives, Currency Futures, Mutual Funds but also other services Fixed Deposits, Loans, Tax Services, New Pension Systems and Insurance are available. ICICIdirect.com offers a convenient and easy to use platform to invest in equity and various other financial products using its unique 3-in-1 account which integrates customer's saving, trading and demat accounts. Apart from convenience, ICICIdirect.com also offers access to comprehensive research information, stock picks and mutual fund recommendations among other offerings. Tailored services and trading strategies are available to different types of customers; long term investors, day traders, high-volume traders and derivatives traders to name some. ICICIdirect.com uses the most advanced commercially available 128-bit encryption technology enabled Secure Socket Layer (SSL), to ensure that the information transmitted between the client and ICICIdirect.com across the internet is safe and cannot be accessed by any third party. ICICIdirect.com is the first broker in India to introduce `Digitally Signed Contract Note' to its customers. As a result, the process of generating contract notes has been automated and the same would be instantly available to its customers in a safe and secure manner through the website. ICICI Securities has set-up neighborhood financial stores which offer a variety of financial products and services under one roof. It is a one-stop shop that facilitates existing and potential customers to speak to our team and understand their financial plans and goals. ICICI Securities has 250 stores across 66 cities in India. 15
  16. 16. ABOUT ICICIDIRECT.COM A unique 3-in-1 On-line Trading Account Seamless, Secure and Integrated 3-in-1 trading platform... Our 3-in-1 online trading platform links your banking, trading and demat accounts, ensuring unmatched convenience for customers. 16 Seamless Trading You can trade in shares without going through the hassle of tracking settlement cycles, writing cheques and transfer instructions. Absolutely hassle free! Security Instead of transferring monies to a broker's pool or towards deposits, you can manage your own demat and bank accounts when you trade through ICICIdirect.com. It provides you the flexibility to pay only when you trade. Wide range of products Share trading in both NSE and BSE, innovative offerings like - Margin, Margin Plus, BTST, and SPOT. Derivatives trading, overseas trading, mutual funds, mutual funds, IPOs and on-line life insurance.
  17. 17. 17 Award Winning Research We understand the need for the right research to make the right investment decision and has focused heavily n this area. Our team with its consistent delivery has been voted as the 'Most preferred brand of financial advisory services' at the CNBC Awaaz Consumer Awards, 2007. Control You can be rest assured, that your order will be precisely for the amount you wanted it to be, without any deviation, giving you full control of your money and your trades. Tracking and Review Monitoring your investments is as important if not more than making that investment itself. Our portfolio tracker and watch list along with sms alerts will always keep you updated on the status of your investments with us and act on them when required.
  18. 18. SWOT ANALYSIS 18 Strength The biggest strength of ICICI SECURITIES is the online portal for the investment. Company is pioneer in the online investment portal and at no. 1 for the best services and they are having unique 3 in 1 account that no other broker is having. They are having user friendly website having 27 unique investment tools from IPO to FD except MCX market. Weakness All companies are having some weaknesses ICICI SECURITIES is also having weakness like the charges, ICICI SECURITIES are having the highest charges than other brokers. Opportunity The biggest opportunity is that there are many customers who are not investing through ICICIdirect.com and then also they are having account and using just research recommendation and investing at other broker if they reduce charges than the investors likes to invest through ICICIdirect.com. Threat The biggest threat that ICICI SECURITIES is having that now a day’s every brokerage services are giving online facility and now a day’s all banking companies like HDFC, AXIS, etc. are giving online demat trading services.
  19. 19. CHAPTER NO. 3 LITERATURE REVIEW 19
  20. 20. Mutual funds industry is a growing at a very fast rate India. Various studies and research has been on this industry by experts. Here are the lists of few books that have been referred to for the purpose of the study. Mr. M. Jaidev in his book has “Investment policy and performance of Mutual Fund” has studied the Indian Public Sector Mutual Funds. In this book he has covered risk, rate of return. “Investment policy and pricing of mutual funds” In this book he has done an empirical study covering all aspects of mutual fund investment along with the regulatory framework. Nalini Prava Tripathy in her book “Mutual Funds in India Emerging Issues” provides a detailed evaluation of investment management which is not only helpful for influencing marketing operations but also for securities selection, investment research and timing and resource allocation. Dr H. Sadak in his book “Mutual Funds in India” has highlighted the importance of financial institutions in India, The basic focus on the growth and development of mutual funds in India. The entire gamut of the theoretical aspects of the fund management has been critically examined in the context of the performance of mutual funds and it provides an insight into fund management and the areas of weakness. Study by Laukkanen (2006) explains that varied attributes present in a product or service facilitate customer’s achievement of desired end state and the indicative facts of study show that electronic services create value for customers in service consumption. Source: - vsrdjournal.com 20
  21. 21. Gil-Bazo, Javier Pablo (2009) have examined the market for equity mutual funds and found that Funds with worse before-fee performance charge higher fees and that better fund governance may bring fees more in line with performance. Singh and Jha (2009) conducted a study on awareness acceptability of mutual funds and found that consumers basically prefer mutual fund due to return potential, liquidity and safety and they were not totally aware about the systematic investment plan. The investors‟ will also consider various factors before investing in mutual fund. Chen, Kraft Weiss (2011) have tested mutual funds that engage in tax planning and how do they respond to changes in the capital gains tax rates was investigated. It was found that there was consistency with tax planning by managers of both open-end and closed-end mutual fund and mutual fund managers may not tax plan like individuals because fund managers have incentives to consider the tax liability of both current and potential investors. Cao, Ghysels Hatheway (2011) have investigated two types of funds that make more extensive use of derivatives, global funds and specialized domestic equity fund and found that risk and return characteristics of these two groups of funds are significantly different from funds employing derivatives sparingly or not at all and that Fund managers time their use of derivatives in response to past returns. Sources: - www.indianresearchjournals.com 21
  22. 22. CHAPTER NO. 4 RESEARCH METHODOLOGY 22
  23. 23. Primary sources for data collection will be used for the present study. A reconnaissance survey will be made of the selected respondents to get acquainted with the factors behind to start analysis. On the basis of the information gathered, a well designed pretested interview schedule will be drafted and used in the field survey to collect primary data, before undertaking the main survey a tentative. 23 Primary source: Primary data had been collected by approaching the Investors. Secondary source: The sources of data are internet, magazines, newspapers, etc. Need for the study This study is to know the customer awareness about the mutual fund and how customers are investing their funds in the different investment like equity market, fixed deposit, insurance etc. Secondly to know how the customer are investing online or offline mode and how frequently the customers are doing online transaction. And if they are not investing through ICICIDIRECT.com than what is the reason behind that.
  24. 24. 24 OBJECTIVE To know about preference of investor towards mutual funds. To study the investment rationale by mutual funds investors. To know investor awareness about investment in mutual funds. To know why investors are not investing in mutual fund. DATA SET AND SAMPLE The study suffers from certain limitations, although, the researcher will make every possible effort for comprehensive study of investment pattern degree of risk and return to investors. Yet, non availability of adequate information may be key limitation in few cases, the present study is confined only the area of RAJKOT. Thus the findings can be generalized only to certain extent.
  25. 25. Research Design 25 Descriptive Research Descriptive research is a research where in researcher has no control over variable. It just presents the picture, which has already studied our research is based on Descriptive study. Our research is aimed at collecting information by approaching 70 Investment Clients of the company who are aware regarding the MUTUAL FUND and the online business. Sampling Design Sampling can be defined as the section of some part of an aggregate or totality on the basis of which judgment or an inference about aggregate or totality is made. The sampling design helps in decision making in the following area: - Sampling Size - 70 Sampling Area - RAJKOT Sampling Technique – Non probability convenience sampling. Method- survey method Demographic data: - demographic data is not there in report because of company has not given the permission to collect demographic data.
  26. 26. CHAPTER NO. 5 ANALYSIS 26
  27. 27. 1) HAVE YOU INVE ESTED IN ANY OF THE FOLLOWIN HS? LAST 12 MONTHS 1) Equity 2) F O 3) Mutual fund 4) Insurance 5) Corporate Fixed Dep 6) Debentures 7) PPF 8) Others 4% 9% 6% 2% INVESTORS CHOICE 27 eposit 27% 11% 24% 16% 1% ING IN THE EQUITY MUTUAL FUND INSURANCE FO CORPORATE F.D. PPF OTHER NONE DEBENTURE
  28. 28. PARTICULAR INVESTED NOT EQUITY 18 52 26% 74% FUTURE OPTION 3 67 4% 96% MUTUAL FUNDS 7 63 10% 90% INSURANCE 17 53 24% 76% CORPORATE FIXED DEPOSIT 5 65 6% 94% DEBENTURES 1 69 1% 99% PPF 7 63 9% 91% OTHER 2 68 2% 98% NONE 13 57 18% 82% 28 INTERPRETATION INVESTED PERCENTAGE 1 PERCENTAGE 2 The above pie chart talks about the customer investments. As we can see above that 26% people invest equity then after equity people most prefer insurance and then at the 3rd place mutual funds come into existence. People invest less in future and option and debentures. So above chart can give us prediction of future.
  29. 29. 2) WHAT IS YOUR P 1) Online 2) Offline 3) NA 35 40 35 30 25 20 15 10 5 0 ONLINE PREFERRED MODE OF INVESTME 29 38 27 OFFLINE NA ENT?
  30. 30. PARTICULAR INVESTED PERCENTAGE ONLINE 24 35% OFFLINE 26 38% NA 20 27% 30 INTERPRETATION The ratio of the customer using offline mode is higher than the customer using online mode even though ICICI SECURITIES is providing the platform of all investment product except MCX market the reason behind that is the feeling of insecurity and also less knowledge of the online trading.
  31. 31. 3) HOW WOULD D YOU PREFER TO MAKE INVESTMENTS IN 1) ICICI DIRECT 2) BANKS 3) OTHER BROKER 4) DIRECTLY AMC 5) NOT INVESTING 8 1 90 80 70 60 50 40 30 20 10 0 ICICI DIRECT BANKS MUTUAL FUNDS? 31 RS C G 3 5 83 KS OTHER BROKERS DIRECTLY WITH AMC NOT INVESTING E YOUR
  32. 32. PARTICULAR INVESTED PERCENTAGE ICICIDIRECT 5 8% BANKS 1 1% OTHER BROKER 2 3% DIRECTLY WITH AMC 3 5% NOT INVESTING 59 83% 32 INTERPRETATION Investors are not aware about the mutual fund, they are using traditional mode of investment and the investors are having charges problem with ICICI SECURITIES because AMC’s are charging minimum. Secondly the major investors are not investing in mutual fund the ratio is 83% who are not investing in the mutual fund.
  33. 33. 4) BEFORE THE DE EMO, WERE YOU AWARE THAT Y UAL FUNDS THROUGH ICICI DIRE INVEST IN MUTU 1) YES 2) NO 55% AWARNESS 33 45% YOU CAN ECT? yes no
  34. 34. PARTICULAR AWARE PERCENTAGE YES 32 45% NO 38 55% 34 INTERPRETATION Before the demo only 45% of the customers know that ICICIDIRECT.com is giving a platform to invest in mutual fund and the other 55% are not aware about that so that may be also a major reason for not investing in mutual fund through ICICIDIRECT.com.
  35. 35. 5) IF YES, WHAT AR ARE THE REASONS FOR NOT INVE S THROUGH ICICIDIRECT.COM? E ASSISTENCE. E KNOWLEDGE. ESTED TO INVEST BY ICICI DIRECT VESTING IN MUTUAL FUND MUTUAL FUNDS 1) NEED MORE 2) NEED MORE 3) NOT INTRES 4) DO NOT INV 80 70 60 50 40 30 20 10 0 NEED ASSISTENCE NEED KNOWLEDGE 18 5 35 NOT INTRESTED IN ICICI NOT INVESTING 0 77 ESTING IN REASON FOR THROUGH IC NOT INVESTING H ICICIDIRECT.COM
  36. 36. PARTICULAR NO. OF NEED MORE ASSISTENCE 18 18% NEED MORE KNOWLEDGE 5 5% NOT INTRESTED TO INVEST THROUGH ICICI DIRCT 0 0% NOT INVESTING IN MUTUAL FUND 77 77% 36 INTERPRETATION CUSTOMER PERCENTAGE In the above table we can see that 77% customers are not investing in the mutual fund. And the other 23% wants more knowledge or the assistance from ICICI SECURITIES. So this is the reason for not investing in the mutual fund through ICICIDIRECT.com.
  37. 37. 6) WHICH OF THE FOL OLLOWING ONLINE TRANSACTIO YOU DONE IN THE PAST ST? ETS ONLINE RAINS ONLINE LINE IS ONLINE 1) BUY MOVIE TICKET 2) BOOK FLIGHTS/TRA 3) BOOK HOTELS ONL 4) BUY MERCHANDIS 5) USE NET BANKING 6) NOT DOING ANY ON 30 25 20 15 10 5 0 18 12 ONLINE TRANSACTION 37 7 8 25 30 ONS HAVE ONLINE LINE TRANSACTION
  38. 38. PARTICULAR NO. OF 38 BUY MOVIE TICKETS BOOK FLIGHTS/TRAINS BOOK HOTELS INTERPRETATION CUSTOMER PERCENTAGE 13 18% 8 12% 5 In the above table and diagram we can see that 30% of the customers are not doing any kind of online transaction and ICICIDIRECT is giving online platform to the customer so 30% are not doing online transaction so they are not comfortable with online investment and rest of 70% are doing online transaction so that if they are comfortable with online investment. 7% BUY MARCHENDIS 5 8% USE NET BANKING 17 25% NOT DOING ANY ONLINE TRANSACTION 22 30%
  39. 39. 7) WHICH MEDIUM OF F NEWS INFORMATION AND ANALY YOU USE TO KEEP YOU PRODUCTS? LYSIS DO URSELF INFORMED ON INVESTME 1) DISCUSS WITH FRIE IENDS AND FAMILY 2) CHECK FINANCIAL 3) ASK FINANCIAL AD 4) CHECK MEDIA REPO 5) PREFER OWN RESE MEDIUM OF 5% 10% 35% NEWS INFORMATION AND ANALYSIS 39 L WEBSITES DVISORS PORTS SEARCH 32% 18% DISCUSS WITH FRIE FAMILY FINANCIAL WEBSIT FINANCIAL ADVISO MEDIA REPORTS OWN RESEARCH ENT FRIENDS AND BSITES ISORS
  40. 40. MEDIUM OF NEWS INFORMATION 40 AND ANALYSIS DISCUSS WITH FRIENDS AND FAMILY FINANCIAL WEBSITES FINANCIAL ADVISORS INTERPRETATION NO. OF CUSTOMER PERCENTAGE 22 32% 12 18% 4 In the above table we can see that 35% of the customer are using own research for any investment decision. 32% of the customers are taking advice from the friends and family. 18% of the customers are using financial websites. 5% are taking advices from the advisors. 10% of the customers are using media reports. 5% MEDIA REPORTS 7 10% PREFER OWN RESEARCH 25 35%
  41. 41. 8) HOW DO YOU CHEC ECK THE PERFORMANCE OF ALL YOUR INVESTMENTS? 1) Update investment det etails on the third party websites 2) Ask my financial advis 3) My broker provides m 4) Other 40 35 30 25 20 15 10 5 0 FINANCIAL WEBSITES FINANCIAL ADVISOR 37 11 41 visor me the information IAL BROKER PROVIDES DETAILS OTHER 20 32 LL/ANY OF PERFORMAN ANCE CHECK
  42. 42. How do customer check the performance UPDATE INVESTMENT DETAILS ON A THIRD PARTY WEBSITES 26 42 of all investment ASK FINANCIAL ADVISOR BROKER PROVIDES THE INFORMATION OTHER INTERPRETATION NO. OF CUSTOMER PERCENTAGE 37% 8 11% 14 20% 22 32% This information shows how customer check their investment performance, 37% customers are updating their investment details on a third party websites, 11% customers are there who asks their financial advisor for the investment, 20% customers are there who takes advice from their brokers and 32% customers are there who have other ways to check the performance of investment.
  43. 43. 9) WOULD YOU LI ICICIDIRECT.COM? 1) YES 2) NO LIKE TO SWITCH RELATIONS RELATIONSHIP 43 80% 20% NSHIP TO YES NO
  44. 44. RELATIONSHIP REPLY OF YES 56 80% NO 14 20% 44 INTERPRETATION CUSTOMER PERCENTAGE The above table shows that 80% customer are having positive reply for the future relationship and 20% are having negative reply for the future relationship. The reason behind negative reply is that either customers are not comfortable with the online platform or they have some issue in the past and for the positive reply the reason is the premium services that ICICI SECURITIES is giving to the customer.
  45. 45. 10) WHICH OF THE FO USEFUL IN THE DEMO? OLLOWING SITE FEATURES DID Y O? 1) CAPITAL GAIN STA 2) PORTFOLIO MONITO 3) EASE OF PURCHASE 4) PERSONALISED RES 5) OTHER 46 38 90 80 70 60 50 40 30 20 10 0 45 ATEMENT ITORING SE AND REDEMPTION ESEARCH 80 37 2 YOU FIND SITE FEATURES
  46. 46. SITE FEATURES CUSTOMERS CAPITAL GAIN STATEMENT 32 46% PORTFOLIO MONITORING 27 38% EASE OF PURCHASE/REDEMPTION 36 52% PERSONALISED RESEARCH 26 37% OTHER 2 2% 46 INTERPRETATION FAVOURITE PERCENTAGE The above table shows the features which are helpful to the customer of the ICICI SECURITIES. For 46% of the customers capital gain statement is very useful, for 38% of the customer portfolio monitoring is very useful, for 52% of the customer believes that there is ease of the purchase and redemption, for 37% of the customer personalized research is very useful and for the 2% of the customer other features are useful.
  47. 47. CHAPTER NO. 6 FINDINGS 47
  48. 48. From the study we can understand that the customers are not investing in the mutual fund through ICICIDIRECT.com here some findings are there. Maximum customers are investing in the equity whether they are having expertise knowledge or not but they are not investing in the mutual fund where their money is invested by the expert fund manager. Reason for not investing in the mutual fund is that only 45% of the customers are aware about that mutual funds are also available on the online portal of ICICIdirect.com rest of 55% do not know about that. Second reason for not investing in the mutual fund is the charges. ICICI SECURITIES is charging for the buying mutual fund where online AMC’S are not charging for buying and know a day’s all AMC’S are having their own online portal and giving facility to purchase and sale of mutual fund. 48
  49. 49. CHAPTER NO. 8 CONCLUSION 49
  50. 50. From this study we can say that the customers of the ICICI SECURITIES are not much aware about the mutual fund investment so they are not investing in the mutual fund and the second reason for not investing in the mutual fund through ICICIdirect.com is the charges that ICICI SECURITIES are taking for any mutual fund investment. Talking about the services of the ICICI SECURITIES that are too good, the response of the customer is positive with the services. ICICIdirect.com is the no. 1 platform for the investment of an individual for online transaction which provides 27 types of products for the investment. For any new investor the site is user friendly so easily he/she can understand and invest properly and if he/she can’t predict the market than personalized research is also given in the site so ICICIDIRECT.com is one of the best portals for online investment. 50
  51. 51. CHAPTER NO. 9 SUGGESTION 51
  52. 52. After going through practical training in ICICI SECURITIES for making the analytical report of a company, I would like to conclude some suggestion in order to achieve the targets and to make its consumers brand loyal. ICICI SECURITIES is giving the best service that any broker can provide but their charges are high in comparison of any broker so the main suggestion to the company is to reduce the charges if there is no compromise with the services. Employees are opening accounts of new customers but they are not taking follow up those customers are really taking the advantage of the services of the or not and there are many accounts of customers even they have not logged in once from the opening of the account. 55% of the customers are not aware that mutual funds are also available on portal of ICICIdirect.com so awareness programs should be done for the customers. This is the suggestions for the ICICI SECURITIES. 52
  53. 53. BIBLIOGRAPHY 53
  54. 54. ICICIdirect.com ICICIsecurities.com ICICI prudential mutual fund fact sheet (June14) vsrdjournal.com mutualstocks.blogspot.in indianresearchjournals.com 54
  55. 55. ANNEXURE 55
  56. 56. HAVE YOU INVESTED IN ANY OF THE FOLLOWING IN THE 56 LAST 12 MONTHS? 1) Equity 2) F O 3) Mutual fund 4) Insurance 5) Corporate Fixed Deposit 6) Debentures 7) PPF 8) Others WHAT IS YOUR PREFERRED MODE OF INVESTMENT? 1) Online 2) Offline 3) NA
  57. 57. HOW WOULD YOU PREFER TO MAKE YOUR INVESTMENTS 57 IN MUTUAL FUNDS? 1) ICICI DIRECT 2) BANKS 3) OTHER BROKERS 4) DIRECTLY AMC 5) NOT INVESTING BEFORE THE DEMO, WERE YOU AWARE THAT YOU CAN INVEST IN MUTUAL FUNDS THROUGH ICICI DIRECT? 1) YES 2) NO IF YES, WHAT ARE THE REASONS FOR NOT INVESTING IN MUTUAL FUNDS THROUGH ICICIDIRECT.COM? 1) NEED MORE ASSISTENCE. 2) NEED MORE KNOWLEDGE. 3) NOT INTRESTED TO INVEST BY ICICI DIRECT. 4) DO NOT INVESTING IN MUTUAL FUND.
  58. 58. WHICH OF THE FOLLOWING ONLINE TRANSACTIONS HAVE YOU DONE IN THE PAST? 1) BUY MOVIE TICKETS ONLINE 2) BOOK FLIGHTS/TRAINS ONLINE 3) BOOK HOTELS ONLINE 4) BUY MERCHANDIS ONLINE 5) USE NET BANKING 6) NOT DOING ANY ONLINE TRANSACTION WHICH MEDIUM OF NEWS INFORMATION AND ANALYSIS DO YOU USE TO KEEP YOURSELF INFORMED ON INVESTMENT PRODUCTS? 1) DISCUSS WITH FRIENDS AND FAMILY 58 2) CHECK FINANCIAL WEBSITES 3) ASK FINANCIAL ADVISORS 4) CHECK MEDIA REPORTS 5) PREFER OWN RESEARCH
  59. 59. HOW DO YOU CHECK THE PERFORMANCE OF ALL/ANY OF 59 YOUR INVESTMENTS? 1) UPDATE INVESTMENT DETAILS ON A THIRD PARTY WEBSITES 2) ASK FINANCIAL ADVISOR 3) MY BROKER PROVIDES ME THE INFORMATION 4) OTHER WOULD YOU LIKE TO SWITCH RELATIONSHIP TO ICICIDIRECT.COM? 1) YES 2) NO WHICH OF THE FOLLOWING SITE FEATURES DID YOU FIND USEFUL IN THE DEMO? 1) CAPITAL GAIN STATEMENT 2) PORTFOLIO MONITORING 3) EASE OF PURCHASE AND REDEMPTION 4) PERSONALISED RESEARCH 5) OTHER
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