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(Icici copy)summer internship report icici direct (1)
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SUMMER TRAINING REPORT
ON
“Mutual Fund Simplified”
An Investor’s Awareness Initiative
Submitted In Partial Fulfilment of the Requirements Of
Masters in Business Administration
By
Kavita Tripathi
Batch: 2015-17
Roll No:1582970047
Under the Supervision of
Name of Industry Guide Name of Faculty Guide
Mr Ashish Ranjan Ms Saumya Rastogi
Branch Manager Assistant Professor
IILM ACADEMY OF HIGHER LEARNING, LUCKNOW
Affiliated to DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY LUCKNOW
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ACKNOWLEDGEMENT
“Expressionoffeelings by words makes them less significantwhen it comes to
make statement of gratitude”
It is a great sense of gratitude that I acknowledge the effort of a whole host of well-
wishers who have in some way or the other contributed in their own special ways
to the success ofthis effort.
Individual effort can never contribute in totality, to the successful completion of
any venture. At first, I wish to express my sincere gratitude to Mr. Argha
Chakraborty (Manager-Business Development) for his exemplary guidance and
monitoring, who has give me lot of supports and encourage for this project, who
has guide me throughout the project.
I would also like to thank Ms. Saumya Rastogi (Faculty Associate) who has also
helped me as a project guide of the college whenever I am in need.
Last but not the least I would like to thank Relationship Managers for their
guidance and support.
I am also thankful to all the persons who help me directly or indirectly.
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EXECUTIVE SUMMARY
This project is the result of study the insights of existing customers of ICICI and to
know how many of them are aware about ICICI direct.com platform. A Mutual
Fund is a trust that pools the savings of number of investors who share a common
financial goal. It throws the light on how Mutual Funds really work, how much
risk involved in it and how they diversify themselves.
Project name Mutual Fund Simplified aimed at educating the customers about the
Mutual Fund and they can invest in Mutual Funds through ICICI Direct.com and
survey is also focused on different investment patterns of investors and their
preferences in various financial products particularly Mutual Funds.
The main reason the number of Mutual Fund investors are still small is that nine
people out of ten people with income do not aware that Mutual Funds exists. This
research drawn attention that existing customers of ICICI aware about Mutual
Funds but most of them have incomplete information about Mutual Funds and
most of them are not ready to change their prospective. it also shows that people
are risk averse in case of Mutual funds that’s why they heavily invest in Equity
Market. Now people most prefer online trading rather than offline trading.
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This research gave me great learning experience and at the same time it gave me
enough scope to implement my analytical ability. The analysis and advice
presented in this report is based on market research on awareness level and
preferences of investors for investment in Mutual Funds.
Finally I consider all my hard work worthwhile, if this endeavor of mine is able to
satisfy all those concerned & proves useful to any one or for any study in the
future.
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DECLARATION
I hereby declare that the Projectwork entitled MUTUAL FUND SIMPLIFIED “AN
INVESTORS AWARENESS INITIATIVE”submitted by me for the Summer
Internship during the MBA to IILM Academy of Higher Learning, Lucknow is my
own original work and has not been submitted earlier either to IILMor to any
other Institution for the fulfillment of the requirement for any courseof study. I
also declare that no chapter of this manuscriptin whole or in part is lifted and
incorporated in this report fromany earlier / other work doneby me or others.
Signature of Student: _____________ Signatureof Faculty Mentor: ________
Name of Student: ________________ Name of Faculty Mentor: ___________
Designation: _______________________
Date: Date:
Place: Place:
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Table of Contents
Chapter-1 Background of Study
1.1 Introduction 10
Chapter-2 Company Profile
2.1 ICICI Group 13
2.1.1 Introduction 14
2.1.2 Group philosophy & History 15
2.1.3 Overview 16
2.1.4 ICICI Bank 18
2.1.5 ICICI Prudential Life Insurance 19
2.1.6 ICICI Lombard 20
2.1.7 ICICI Securities Primary Dealership Ltd. 22
2.1.8 ICICI Prudential Asset Management Company 23
2.1.9 ICICI Venture 25
2.1.10 ICICI Securities 26
2.1.10.1 I-Sec Product 29
2.1.10.2 Organization Structure 38
2.1.10.3 HR Practices 39
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2.1.10.4 SWOT 40
2.1.10.5 Michael Porters Five Force Analysis 42
Chapter-3 Mutual fund
3.1 Introduction 44
3.2 Need of study 61
3.3 Detail of Pivotal/ Data entry sheet 62
3.4 Objective 66
Chapter-4 Data Collection& Analysis 67
4.1 Sampling Frame 67
4.2 Data Collection 68
4.3 Source of Data Collection 68
Chapter-5
5.1 Data Analysis & interpretation 69
5.2 Finding 88
5.3 Recommendation 91
5.4 Suggestion 93
5.5 Summary 94
5.6 Gain From Project 95
5.7 Limitations of the project 96
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5.8 Scope in Future of Project 97
5.9 Conclusion 98
5.10 Bibliography & Reference 100
S.No. Figure Page No
1 Organization Structure 38
2 Mutual Fund Cycle 46
3 Gender 70
4 Age 71
5 Occupation 72
6 Investment Pattern 73
7 Investment in Last 12 Months 74
8 Associated with ICICI 75
9 Investment Decision 76
10 Mutual Fund a good option 77
11 Factors influencing Investment 78
12 Mode of Investment 79
13 Preference of Offline 80
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14 Online Transaction Frequency 81
15 Check the Performance of investment 82
16 Awareness of Demo 82
17 Investment through ICICIDIRECT.COM 84
18 Reasons for not Investing 85
19 Plan to invest in Future 86
20 Rating of Demo & Presentation 87
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CHAPTER 1
BACKGROUND OF THE STUDY
INTRODUCTION
The mutual fund industry has been in India for a long time. This came into
existence in 1963 with the establishment of Unit Trust of India, a joint effort by the
Government of India and the Reserve Bank of India. The next two decades from
1986 to 1993 can be termed as the period of public sector funds with entry of new
public sector players into the mutual fund industry namely, Life Insurance
Corporation of India and General Insurance Corporation of India. The year of 1993
marked the beginning of a new era in the Indian mutual fund industry with the
entry of private players like Morgan Stanley, J.P Morgan, and Capital
International. This was the first time when the mutual fund regulations came into
existence. SEBI (Security Exchange Board of India) was established under which
all the mutual funds in India were required to be registered. SEBI was set up as a
governing body to protect the interest of investor. By the end of 2008, the number
of players in the industry grew enormously with 46 2 fund houses functioning in
the country. With the rise of the mutual fund industry, establishing a mutual fund
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association became a prerequisite. This is when AMFI (Association of Mutual
Funds India) was set up in 1995 as a nonprofit organization. Today AMFI ensures
mutual funds function in a professional and healthy manner thereby protecting the
interest of the mutual funds as well as its investors. The mutual fund industry is
considered as one of the most dominant players in the world economy and is an
important constituent of the financial sector and India is no exception. The industry
has witnessed startling growth in terms of the products and services offered,
returns churned, volumes generated and the international players who have
contributed to this growth. The market has graduated from offering plain vanilla
and equity debt products to an array of diverse products such as gold funds,
exchange traded funds (ETF’s), and capital protection oriented funds and even
thematic funds. In addition investments in overseas markets have also been a
significant step. They are cost efficient and also easy to invest in. India has a
saving rate of more than 35% of GDP, with 80% of the population who save.
These savings could be channelized in the mutual funds sector as it offers a wide
investment option. In addition, focusing on the rapidly growing tier II and tier III
cities within India will provide a huge scope for this sector. Further tapping rural
markets in India will benefit mutual fund companies from the growth in agriculture
and allied sectors.
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In this study of the project “Mutual Fund Simplified”, I have to gather the
information on the knowledge level, acceptance level and the awareness level of
the clients regarding the online portal of ICICI direct and to tell them the benefits
of using this portal. With the help of this study I also get to know the issues and
problems faced by the clients regarding the online portal.
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CHAPTER - 2
COMPANY PROFILE
ICICI GROUP
SNAPSHOT OF “ICICI GROUP”
Date of establishment
1955
1994(ICICI Bank)
Type Private sector
Revenue US$ 9.8 billion (2015)
Headquarter Mumbai, India
Key people Chanda Kochhar (chairman),
Anup Bagchi (MD & CEO)
Subsidiaries UK & Canada (Banks)
Industry Banking, Financial services
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INTRODUCTION
ICICI group offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through
its specialized group companies and subsidiaries in the areas of personal banking,
investment banking, life and general insurance, venture capital and asset
management. With a strong customer focus, the ICICI group companies have
maintained and enhanced their leadership positions in their respective sectors.
VISION
To be leading provider of financial services in India and a major global bank.
MISSION
We will leverage our people, technology, speed and financial capital to:
1. Be the banker of first choice for our customers by delivering high quality,
world-class products and services.
2. Expand the frontiers of our business globally.
3. Play a proactive role in a full realization of India’s potential.
4. Maintain a healthy financial profile and diversify our earnings across businesses
and geographies.
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5. Maintain high standards of governance & ethics.
6. Contribute positively to the various countries and markets in which we operate.
7. Create value for our stakeholders.
GROUP PHILOSPHY
As India transforms into a key player in the global economic arena, multiple
opportunities for the financial services sector have emerged. We, at ICICI group,
seek to partner the country’s growth and globalization through the delivery of
world class financial services across all cross-sections ofsociety.
From providing project and working capital finance to the buoyant manufacturing
and infrastructure sector, meeting the foreign investment and treasury requirements
of the Indian corporate with increasing levels of international engagement,
servicing the India linked needs of growing Indian Diaspora , being a catalyst to
the consumer finance story to serving the financially underserved segments of the
society. Our technology empowered solutions and distribution network have
helped us touch millions of lives.
For us sustainable development is not just a phrase.
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ICICI Group: History
The Industrial Credit and Investment Corporation of India Limited (ICICI)
incorporated in 1955at the initiative of the World Bank, the Government of India
and representatives of Indian industry, with the objective of creating a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. Mr. A Ramaswami Mudalia selected as the first
Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency
loans to Indian industry. Besides funding from the World Bank and other multi-
lateral agencies, ICICI was also among the first Indian companies to raise funds
from international markets.
Overview-
ICICI Group offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through
its specialized group companies and subsidiaries in the areas of personal banking,
investment banking, life and general insurance, venture capital and asset
management. With a strong customer focus, the ICICI Group Companies have
maintained and enhanced their leadership positions in their Respective sectors.
• ICICI Bank
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• ICICI Prudential Life Insurance
• ICICI Lombard General Insurance Company,
• ICICI Securities Primary Dealership Limited (‘I-Sec PD’)
• ICICI Prudential Asset Management
• ICICI Venture
• ICICI Home Finance Company.
• ICICI Securities Ltd.
Board of directors:.
Ms. Chanda D. Kochhar, Chairperson
Mr. Uday Chitale
Mr. Narendra Murkumbi
Ms. Zarin Daruwala
Ms. Shilpa Kumar
Mr. Anup Bagchi, Managing Director & CEO
Mr. Ajay Saraf, Executive Director
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ICICI BANK
ICICI Bank was established by the Industrial Credit and Investment Corporation of
India (ICICI), an Indian financial institution, as a wholly owned subsidiary in
1994. The parent company was formed in 1955 as a joint-venture of the World
Bank, India's public-sector banks and public-sector insurance companies to provide
project financing to Indian industry. The bank was initially known as the Industrial
Credit and Investment Corporation of India Bank, before it changed its name to the
abbreviated ICICI Bank. The parent company was later merged with the bank.
ICICI Bank is India's largest private sector bank with total assets of Rs. 7,206.95
billion (US$ 109 billion) at March 31, 2016 and profit after tax Rs. 97.26 billion
(US$ 1,468 million) for the year ended March 31, 2016. ICICI Bank currently has
a network of 4,450 Branches and 14,240 ATM's across India. ICICI Bank’s total
assets was of Rs. 6,461.29 billion (US$ 103 billion) at March 31, 2015 and profit
after tax Rs. 111.75 billion (US$ 1,788 million) for the year ended March 31, 2015.
ICICI Bank currently had a network of 4,050 Branches and 12,817 ATM's across
India. ICICI Bank is an Indian multinational banking and financial services
company headquartered in Mumbai, Maharashtra, India.
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ICICI PRUDENTIAL LIFE INSURANCE
ICICI Prudential Life Insurance Company (ICICI Prudential Life) is a joint venture
between ICICI Bank Ltd., India's largest private sector bank, and prudential plc, a
leading international financial services group headquartered in the United
Kingdom. ICICI Prudential Life was amongst the first private sector life insurance
companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority of India (IRDAI).ICICI Prudential
Life's capital infused stands at Rs. 47.96 billion (as of March 31, 2014) with ICICI
Bank Ltd. and Prudential plc holding 74% and 26% stake respectively. For the
financial year 2014, the company garnered a total premium of Rs. 124.29 billion.
The company has assets under management of Rs. 1039.39 billion as on March 31,
2016.For over a decade, ICICI Prudential Life has maintained its dominant
position (on new business retail weighted basis) amongst private life insurers in the
country, with an array of products to match the different life stage requirements of
customers and enable them to achieve their long term financial goal.
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ICICI LOMBARD
ICICI Lombard General Insurance Company, is a joint venture between ICICI
Bank Limited, India's second largest bank with consolidated total assets of over
USD 91 billion at March 31, 2012 and Fairfax Financial Holdings Limited, a
Canada based USD 30 billion diversified financial services company engaged in
general insurance, reinsurance, insurance claims management and investment
management. ICICI Lombard GIC Ltd. is the largest private sector general
insurance company in India with a Gross Written Premium (GWP) of Rs 71.34
billion for the year ended 31 March 2014. The firm offers policy issuance and
renewal through its website. It markets assurance products including Car
Insurance, Health Insurance, and International Travel Insurance .It offers following
products-
• ICICI Lombard Health Insurance
• ICICI Lombard Overseas Student Medical Insurance
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ICICI SECURITIES PRIMARY DEALERSHIP LIMITED
It’s the largest primary dealer in Government Securities. It is an acknowledged
leader in the Indian fixed income and money markets, with a strong franchise
across the spectrum of interest rate products and services -institutional sales and
trading, resource mobilization, portfolio management services and research. One of
the first entities to be granted primary dealership license by RBI, I-Sec PD has
made pioneering contributions since inception to debt market development in
India. I-Sec PD is also credited with pioneering debt market research in India. It is
one of the largest portfolio managers in the country and amongst PDs, managing
the largest AUM under discretionary portfolio management.
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ICICI PRUDENTIAL ASSET MANAGEMENT
ICICI Prudential Asset Management
Company Ltd. is the second largest asset management company (AMC) in the
country (as per average assets under management as on February 28, 2015)
focused on bridging the gap between savings & investments and creating long term
wealth for investors through a range of simple and relevant investment solutions.
The AMC is a joint venture between ICICI Bank, a well-known and trusted name
in financial services in India and Prudential Plc, one of UK’s largest players in the
financial services sectors. Throughout these years of the joint venture, the company
has forged a position of pre-eminence in the Indian Mutual Fund industry. The
AMC manages significant Assets under Management (AUM) in the mutual fund
segment. The AMC also caters to Portfolio Management Services for investors,
spread across the country, along with International Advisory Mandates for clients
across international markets in asset classes like Debt, Equity and Real Estate .The
AMC has witnessed substantial growth in scale; from 2 locations and 6 employees
at the inception of the joint venture in 1998, to a current strength of more than
1000 employees with a reach across around 120 locations reaching out to an
investor base of around 3 million investors. The company’s growth momentum has
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been exponential and it has always focused on increasing accessibility for its
investors .Driven by an entirely investor centric approach, the organization today is
a suitable mix of investment expertise, resource bandwidth and process orientation.
The AMC endeavors to simplify its investor’s journey to meet their financial goals,
and give a good investor experience through innovation, consistency and sustained
risk adjusted performance.
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ICICI VENTURE
It is one of the largest and most successful alternative asset managers in India with
funds under management of over US$ 2 billion. It has been a pioneer in the Indian
alternative asset industry since its establishment in 1988, having managed several
funds across various asset classes over multiple economic cycles. ICICI Venture is
a wholly owned subsidiary of ICICI Bank. It the largest private sector financial
services group in India. ICICI Venture has been at the forefront of driving
entrepreneurship in India for over two decades, both as a partner and capital
provider for individuals with a clear common objective, the passion to pursue
business ideas in the quest for creating value for all stakeholders and for the larger
good of the nation. Till date, various funds managed by the firm have invested in
over 500 companies. ICICI Venture continues to remain committed to this mission.
The firm has played a key role in establishing the foundation for several new age
businesses in India, by providing growth capital funding to companies in sectors as
diverse as Information Technology, Life Sciences and Healthcare, Media &
Entertainment, Banking & Financial Services, Infrastructure, Retail, Aviation,
Auto Components, Construction services, Real Estate, Biotechnology, Textiles,
Fine Chemicals, Consumer Products, Logistics, etc. The firm played a pioneering
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role in the Indian Venture Capital industry during the 1990s but shifted focus to
other alternative asset classes during the past decade in line with the evolution of
Indian industry.
ICICI SECURITIES
ICICI Securities Ltd is the largest integrated securities firm covering the needs of
corporate and retail customers through investment banking, institutional broking,
retail broking and financial product distribution businesses. Among the many
awards that ICICI Securities has won, the noteworthy awards for 2012 were: Asia
money `Best Domestic Equity House for 2012; 'BSE IPF D&B Equity Broking
Awards 2012' under two categories:- Best Equity Broking House - Cash Segment
and Largest E-Broking House; the Chief Learning Officer Award from World
HRD Congress for Innovation in Learning category. IDG India's CIO magazine
has recognized ICICI Securities as a recipient of CIO 100 award in 2009, 2010,
2011 and 2012ICICI Securities Primary Dealership Limited (‘I-Sec PD’) is the
largest primary dealer in Government Securities. It is an acknowledged leader in
the Indian fixed income and money markets, with a strong franchise across the
spectrum of interest rate products and services - institutional sales and trading,
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resource mobilization, portfolio management services and research. One of the first
entities to be granted primary dealership license by RBI, I-Sec PD has made
pioneering contributions since inception to debt market development in India
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’s for its diversified
set of client that includes corporate, financial institutions, high net-worth
individuals.
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ORGANIZATION
The company was incorporated in 1995 and is headquartered in Mumbai, India.
ICICI Securities Limited is a subsidiary of ICICI Bank Limited. ICICI securities
ltd named its online division as ICICI direct.com and it is into retail Broking 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
saving, trading and demat accounts. ICICI Securities Limited provides various
investment banking products and services to corporate financial institutions, and
retail investors in India and internationally. It provides corporate finance services
to corporations, financial institutions, financial sponsors, and government, which
include equity capital market products, such as initial public offerings (IPO),
further public offerings, rights offerings, convertible offerings, qualified
institutional placements, non-convertible debentures, buyback, delisting, and open
offers and international offerings for unlisted and listed entities. ICICIdirect.com is
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the first broker in India to introduce `Digitally Signed Contract Note' to its
customers.
PRODUCT & SERVICES
1. Equity
2. Derivatives
3. Currency
4. Mutual funds
5. Exchange Traded Funds
6. Life insurance
7. General insurance
8. Fixed Deposits & Bonds
9. Loans
10. E-Lockers
11. Trade racer
12. NPS (national pension system)
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1. EQUITY -
ICICIdirect.com offers various options while trading in shares which are as
follows:
• Cash Trading: This is a delivery based trading system, which is generally
done with the intension of taking delivery of shares or monies.
• Margin Product: To do an intra-settlement trading up to 3 to 4 times our
available funds, wherein we can take long buy/ short sell positions in stocks
with the intention of squaring off the position within the same day
settlement cycle.
• Margin PLUS Product: Through Margin PLUS we can do an intra-
settlement trading up to 25times our available funds, wherein we take long
buy/ short sell positions in stocks with the intention of squaring off the
position within the same day settlement cycle. Margin PLUS will give a
much higher leverage in our account against our limits.
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• CallNTrade®:CallNTrade® allows us to call on a local number in our city
& trade on the telephone through its Customer Service Executives. This
facility is currently available in over 11major states across India.
• Trading on NSE/BSE: Through ICICIdirect.com, we can trade on NSE as
well as BSE.
• Market Order: we could trade by placing market orders during market
hours that allows us to trade at the best obtainable price in the market at the
time of execution of the order.
• Limit Order: Allows us to place a buy/sell order at a price defined by us.
The execution can happen at a price more favorable than the price, which is
defined by us, limit orders can be placed by us during holidays & non
market hours too.
2. DERIVATIVES-(FUTURES & OPTIONS)-
Through ICICIdirect.com, we can now trade in index and stockfutures on the
NSE. In future trading, we can take buy/sell positions in index or stock(s)contracts
having a longer contract period of up to 3 months.
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Options-
An option is a contract, which gives the buyer the right to buy or sell shares at a
specific price on or before a specific date. For this, the buyer has to pay to the
seller some money, which is called premium. There is no obligation on the buyer
to complete the transaction if the price is not favorable to him. The Buyer of a Call
Option has the Right but not the Obligation to Purchase the Underlying Asset at
the specified strike price by paying a premium whereas the Seller of the Call has
the obligation of selling the Underlying Asset at the specified Strike price. The
Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying
Asset at the specified strike price by paying a premium whereas the Seller of the
Put has the obligation of buying the Underlying Asset at the specified Strike price.
By paying lesser amount of premium, we can create positions under OPTIONS and
take advantage of more trading opportunities.
3. Currency Derivatives-
ICICI Direct offers us a simple and convenient way to trade and hedge our
currency risk in four pair of Currencies- Dollar, Euro, Pound and Japanese Yen
against Indian Rupee .By offering the choice of trading in different asset class of
Currencies it also offers the opportunity to diversify our portfolio.
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4. MUTUAL FUNDS-
ICICI Direct offers a simple and convenient way to invest and manage our
personal finance with over 2000 funds approximately. By offering the choice of the
various funds it partner with, it offers the opportunity to diversify our portfolio
Since the process of selecting the right mutual fund may feel complex and tedious,
I-SEC experts have researched the funds and using certain criterion have created a
choice of funds. We may choose to invest in the choice of funds suggested by I-
SEC’s experts or may build our own portfolio.
5. EXCHANGE TRADED FUNDS
Exchange Traded Funds or ETFs are securities that are traded, like individual
stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can be
bought and sold throughout the trading day like any stock. Most ETFs charge
lower annual expenses than many mutual funds. As with stocks, one must pay
brokerage to buy and sell ETF units.
6. GENERALINSURANCE
General Insurance products cover Health, Home, Motor and Travel, and help
protects financial health unforeseen events strike close to home. ICICI Lombard is
the leading private general insurance company and has one of the best products. Its
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partnership with ICICI Lombard enables it to bring to us the entire range of
insurance offerings for our personal and professional needs, with minimal
paperwork and at the comfort of our home or office.
7. LIFE INSURANCE
It offers range of Life Insurance products offering for our personal needs with
minimum paper work.
8. FIXED DEPOSITS & BONDS
Corporate Fixed Deposits: It offers range of Corporate Fixed Deposits varying in
tenures, interest rates & institutions to suit our investment needs. The deposit
schemes have been specially chosen from high-safety options to ensure that we
enjoy the twin benefits of returns and protection. If your risk appetite is low, fixed
deposits are perfect for you. Since most of the instruments are rated, corporate
fixed deposits have a very high safety level. Attractive returns at interest rates
higher than bank’s Fixed Deposits.
Bonds:-Bond refers to a security issued by a company, financial institution or
government which offers regular or fixed payment of interest in return on the
amount borrowed money for a certain period time. While the interest is paid to the
bond holder at regular intervals, the principal amount is repaid at a later date,
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known as the maturity date. While both bonds and stocks are securities, the
principle difference between the two is that bond holders are lenders while
stockholders are the owners of the organization. Another difference is that bonds
usually have a defined term, or maturity, after which the bond is redeemed,
whereas stocks may be outstanding indefinitely.
9. LOANS:
ICICI direct offers a wide variety of Loan Products from ICICI bank to suit your
requirements. It strives to provide best of our products and services to you at your
doorstep. Youcan chooseany of its below mentioned loan products.
• Home Loans
The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers
some unbeatable benefits to its customers- Doorstep Service, Simplified
Documentation and Guidance throughout the Process.
• Car Loans
ICICI Bank is the most preferred financer for car loans in the country with a
network of more than 1000 channel partners in over 200 locations. Tie-ups with all
leading automobile manufacture to ensure the best deals
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c) Loans againstSecurities (LAS)
A loan against Securities is an overdraft facility from ICICI Bank, given by way of
a current account against pledge of securities that you hold. Not only do you get to
hold on to your securities, but you are also able to generate funds without selling
your hard-earned assets.
10.E-LOCKER
ICICI direct.com's e-locker helps to provide the convenience and flexibility to
store and retrieve our important documents whenever we need them. It can store
scanned copies of our Passport, PAN, Agreements or even medical reports securely
under your ICICI direct account. E-Locker helps eliminate our need to carry copies
of important documents either as a physical photo copy or in storage devices like
CompactDisks, USB token etc.
11. TRADE RACER
Trade Racer is a trading platform which provides Live streaming quotes &
Research Calls, integrated fund transfer system along with multiple watch list
facility. Power-packed with new features, Trade Racer gives the power to identify
market opportunities while enjoying the attractive new look and feel of the trading
terminal.
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12. NATIONAL PENSION SYSTEM (NPS)
The NPS is a new voluntary contributory pension scheme introduced by the
Central Government. Under the National Pension System, individuals can open a
personal retirement account and can accumulate a pension corpus during their
work life to meet financial needs post retirement. These contributions would grow
and accumulate over the years, depending on the returns earned on the investment
made. When the person retires, he will be able to use these savings to take care of
the needs and expenses of his family during old age. The subscribers may use the
accumulated pension wealth under the scheme to purchase a life annuity from a life
insurance company. Alternatively, depending on the age of the subscriber, a part of
the wealth may be withdrawn as lump-sum. ICICI Securities Limited (I-Sec) has
obtained the Point of Presence (POP) Registration Certificate to offer NPS
accounts. Any individual customer of icicidirect.com desiring to open an NPS
account can do so.
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HR PRACTICES-
Human Resource is a very important part of any Organization. In ICICI, they
follow very Friendly & Relevant HR Practices.
• Working environment is very friendly with good hygiene factors.
• Strong HR policies.
• Induction program
• Propermonitoring to maintain the level of organization politics.
• Informal Gathering & Reinforcement to motivate employees.
• Monthly performance review.
• Target Based Contents.
• Performance based High Incentives.
COMPETITORS-
1. HDFC Securities
40. 40
2. SBI Life
3. Reliance Money
4. Kotak Securities
5. India bulls
6. Share khan
7. Angel broking
SWOT ANALYSIS OF THE ICICI SECRUTIES
STRENTHS-
• Company’s mission and vision statement is to maximize the shareholders
returns
• Good market share
• Convenience of time
• Paperless work
• Effective relationship between Relationship Managers & Clients
• High profitability and revenue
41. 41
WEAKNESS-
• High brokerage charges
• Few unsatisfied clients
OPPORTUNITY-
• Government policies
• Reaching in mobile(rural) market
• New product& services
THREATS-
• Market pressurefor lowering the high brokerage charge
• Tough competition
• Change in government policies (in case of negative impact).
• New entrants
42. 42
Michael Porter’s Five Forces Model- Industry Analysis-
Porter’s 5 forces analysis represents the competitive environment of the firm. It is
a strategic foresight to avoid the competitive edge at risk and ensure the
profitability on a long term. The profitability of business within the industrial
structure depends on the following forces:
• Competitive rivalry within the industry;
• Threats of new entrants;
• Threats of substitutes products;
• Bargaining powerof customers;
• Bargaining powerof suppliers.
Competitive rivalry within the industry
In the long run we are likely to see more consolidation in the mutual fund industry
.Larger companies prefer to take over or merge with other companies rather than
spend the money and advertise to people.
Potential of new entrants
The threat of new entrants lies within the mutual fund industry itself. Threat for the
company is other financial services companies entering the market.
43. 43
Powerof the supplier
Not much relevant in most segments except investment banking, where employees
control client Relationships and hence have to be highly compensated.
Powerof the buyers/customers
This is important in the institutional brokerage business which involves high
volume and low Brokerage charges. The extent of buyer power is very low to non-
existent in all kinds of retail Segments.
Threat of substitutes
The products offered by all firms in this industry are more or less differentiated.
Large companies offer similar suites of services whether it is equity or mutual
funds. In some areas of mutual funds, however the availability of substitutes is few
and far between existing players.
44. 44
CHAPTER 3
MUTUAL FUNDS
INTRODUCTION
An investment vehicle that is made up of a pool of funds collected from many
investors for the purpose of investing in securities such as stocks, bonds, money
45. 45
market instruments and similar assets. Mutual funds are operated by money
managers, who invest the fund's capital and attempt to produce capital gains and
income for the fund's investors. A mutual fund's portfolio is structured and
maintained to match the investment objectives stated in its prospectus.
One of the main advantages of mutual funds is that they give small investors
access to professionally managed, diversified portfolios of equities, bonds and
other securities, which would be quite difficult (if not impossible) to create with a
small amount of capital. Each shareholder participates proportionally in the gain or
loss of the fund. Mutual fund units, or shares, are issued and can typically be
purchased or redeemed as needed at the fund's current net asset value (NAV) per
share, which is sometimes expressed as NAVPS.
46. 46
HOW MUTUAL FUND WORKS
The fund sponsor raises money from the investing public, who become fund
shareholders. It then invests the proceeds in securities (stocks, bonds and money
market instruments) related to the fund's investment objective. The fund provides
shareholders with professional investment management, diversification, liquidity
and investing convenience. For these services, the fund sponsor charges fees.
The most prevalent and well-known type of mutual fund operates on an open-
47. 47
ended basis. This means that it continually issues (sells) shares on demand to new
investors and existing shareholders who are buying. It redeems (buys back) shares
from shareholders who are selling. Mutual fund shares are bought and sold on the
basis of a fund's net asset value (NAV). Unlike a stockpric2e, which
h changes constantly according to the forces of supply and demand, NAV2 is
determined by the daily closing value of the underlying securities in a fund's
portfolio (total net assets) on a per share basis. In some instances, investors can
purchase shares directly from the fund, but most funds are sold through an
investment intermediary: a broker, investment advisor, financial planner, bank or
insurance company. These intermediaries are compensated for their services
through a variety of sales charge options (loads) or deferred/ongoing 12b-1 fees.
The former come directly out of the investor's pocket.
48. 48
TYPES OF MUTUAL FUNDS
Categorization by maturity period
1. Open –Ended:
An open-end fund is one that is available for subscription all through the year.
These do not have a fixed maturity. 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 schemes is liquidity.
49. 49
2. Close - Ended:
A closed-end fund has a stipulated maturity period which generally ranging from 3
to 15 years. The fund is open for subscription only during a specified period.
Investors can invest in the scheme at the time of the initial public issue and
thereafter they can buy or sell the units of the schemes on the stock exchanges
where they 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 the Mutual Fund through
periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least
one of the two exit routes is provided to the investor.
3. Interval:
Interval mutual fund scheme are those scheme whose units can be bought and sold
only during a specified time interval, say, 15 days or even three months or any
other time period, which is predetermined by the fund house. Interval fund scheme
can invest in both equities and debt, it mostly invest in debt securities. It taxed like
any other mutual fund depending on the quantum of its investment in equities or
debt. If it invests at least 65% of its portfolio in debt securities, then it is taxed like
a debt fund.
50. 50
Categorization by investment objective
1. Equity Fund:
These funds invest the maximum part of their corpus into equities holdings. The
structure of the fund may vary different for different schemes and the fund
manager’s outlook on different stocks. The Equity Funds are sub-classified
depending upon their investment objective, as follows:
· Large Cap Equity Funds are those that invest in companies with a large market
capitalization
· Mid Cap Equity Funds are those that invest in companies with a medium
market capitalization
· Small Cap Equity Funds are those that invest in companies with a small market
capitalization
· Sector or Industry Specific Equity Funds are those that track specific areas of
the economy, such as discount retailers or property and casualty insurance groups.
Equity investments are meant for a longer time horizon, thus Equity funds
rank high on the risk-return matrix.
51. 51
2. Debt Funds
A fund invests its corpus in debt securities like Government securities, Treasury
Bills, Corporate Bonds, etc yielding steady returns. These funds carry low returns,
as the risk involved is low. These funds are generally preferred by investors with
low risk appetite and who need regular returns from their investment.
Debt funds are investing in fixed income securities like bonds and treasury bills.
Gilt fund, monthly income plans (MIPs), short term plans (STPs), and liquid funds
are some of the investment options in debt funds. Apart from these categories, debt
funds include various funds investing in short term, medium term and long term
bonds.
• Gilt Funds: Invest their corpus in securities issued by Government like
government securities and treasury bills, popularly known as Government of India
debt papers. These Funds carry zero Default risk but are associated with Interest
Rate risk. These schemes are safer as they invest in papers backed by Government.
52. 52
• Income Funds: Invest a major portion into various debt instruments. The
objective of such fund is to provide a regular income to the investors by investing
in fixed income securities like debentures, bonds, and high dividend shares. The
fund pays dividends to the investors out of its earnings.
• Monthly Income Plans (MIPs): An MIP is nothing, but a debt oriented mutual
fund which gives income, in the form of dividends. As MIPs are debt oriented
mutual funds, they invest heavily in debt instruments like debentures, corporate
bonds, government securities etc. It generally has 75-80% of its money in debt and
rest in equity and cash. The income earned from Monthly income plans is not
limited to the monthly option. It can also choose to receive income quarterly, half-
yearly or annually.
s
• Short Term Plans (STPs): Meant for investment horizon for three to six months.
These funds primarily invest in short term papers like Certificate of Deposits
(CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested
in corporatedebentures.
• Liquid Funds: Also known as Money Market Schemes, These funds provides
easy liquidity and preservation of capital, These schemes invest in short-term
53. 53
instruments like Treasury Bills, inter-bank call money market, CPs and CDs. These
schemes rank low on risk-return matrix and are considered to be the safest amongst
all categories of mutual funds. Generally returns are very low in these funds. These
funds are meant for the big corporate to park their fund for a very short period of
time like one week.
3 Balanced funds:-The aim of balanced funds is to provide both growth and
regular income as such schemes invest both in equities and fixed income securities
in the proportion indicated in their offer documents. These are appropriate for
investors looking for moderate growth. They generally invest 40-60 per cent in
equity and debt instruments. These funds are also affected because of fluctuations
in share prices in the stock markets. However, NAVs of such funds are likely to be
less volatile compared to pure equity funds.
54. 54
Growth/Equity oriented schemes
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 risks. These schemes provide different
options to the investors like dividend option, capital appreciation, etc and the
investors may choose an option depending on their preferences. 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/Debtoriented scheme
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, Government 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
also limited in such funds. The NAVs of such funds are affected because of change
in interest rates in the country. If the interest rates 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.
55. 55
Equity Linked Saving Schemes (ELSS)
An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund
that doesn’t just help you save tax, but also gives you an opportunity to grow your
money. It qualifies for tax exemptions under section (u/s) 80C of the Indian
Income Tax Act.
Along with the tax deductions, an ELSS offers you the following benefits:
• An opportunity to grow investors’ money by investing in the equity market.
• Long-term capital gains from these funds are tax free in investors hands.
• The lock-in period is only 3 years.
• You can invest through a Systematic Investment Plan and bring discipline to
your tax planning.
Advantages of mutual fund
• Professionalmanagement
The major advantage of investing in a mutual fund is that customer gets a
professional money manager to manage his investments for a small fee. He can
56. 56
leave the investment decisions to him and only have to monitor the performance of
the fund at regular intervals.
• Diversification
By owning shares in a mutual fund instead of owning individual stocks or bonds,
customer’ risk is spread out. The idea behind diversification is to invest in a large
number of assets so that a loss in any particular investment is minimized by gains
in others. In other words, the more stocks and bonds a person own, the less any one
of them can hurt him. A small investor cannot have a well-diversified portfolio
because it calls for large investment. Large mutual funds typically own hundreds of
different stocks in many different industries. It wouldn't be possible for an investor
to build this kind of a portfolio with a small amount of money.
• Convenient Administration
Mutual funds offer tailor-made solutions like systematic investment plans and
systematic withdrawal plans to investors, which is very convenient to investors.
Investors also do not have to worry about investment decisions; they do not have to
deal with brokerage or depository, etc. for buying or selling of securities. Mutual
funds also offer specialized schemes like retirement plans, children’s plans,
industry specific schemes, etc. to suit personal preference of investors. These
57. 57
schemes also help small investors with asset allocation of their corpus. It also saves
a lot of paper work.
• CostEffectiveness
A small investor will find that the mutual fund route is a cost-effective method (the
AMC fee is normally 2.5%) and it also saves a lot of transaction cost as mutual
funds get concession from brokerages. Also, the investor gets the service of a
financial professional for a very small fee. If he were to seek a financial advisor's
help directly, he will end up paying significantly more for investment advice. Also,
he will need to have a sizeable corpus to offer for investment management to be
eligible for an investment adviser’s services.
• Liquidity
Just like an individual stock, a mutual fund allows investor to request that their
shares be converted into cash at any time.
• Transparency
Mutual funds offer daily NAVs of schemes, which help investor to monitor his
investments on a regular basis. They also send quarterly newsletters, which give
details of the portfolio, performance of schemes against various benchmarks, etc.
58. 58
• Tax Benefits
Investors do not have to pay any taxes on dividends issued by mutual funds.
Investors also have the advantage of capital gains taxation.
• Affordability
Mutual funds allow you to invest small sums. An investor can start his investment
in mutual fund at an affordable price of Rs. 5,000 only. A mutual fund can do that
because it collects money from many people and it has a large corpus.
Disadvantage of Mutual fund
• High Expense Ratios and Sales Charges
If you're not paying attention to mutual fund expense ratios and sales charges, they
can get out of hand. Be very cautious when investing in funds with expense ratios
higher than 1.20%, as they will be considered on the higher cost end. There are
several good fund companies out there that have no sales charges.
59. 59
• Tax Inefficiency
Like it or not, investors do not have a choice when it comes to capital gain payouts
in mutual funds. Due to the turnover, redemptions, gains and losses in security
holdings throughout the year, investors typically receive distributions from the
fund that are an uncontrollable tax event.
• PoorTrade Execution
If you place your mutual fund trade any time before the cut-off time for same-day
NAV, you'll receive the same closing price NAV for your buy or sell on the mutual
fund. For investors looking for faster execution times, maybe because of short
investment horizons, day trading, or timing the market, mutual funds provide a
weak execution strategy.
• SIP (Simple Investment Plan):-
A Systematic Investment Plan or SIP is a smart mode for investing money in
mutual funds. SIP allows investors to invest a certain pre-determined amount at a
regular interval (monthly, quarterly etc.). A SIP is a planned approach towards
investments and helps investors inculcate the habit of saving and building wealth
for the future.
60. 60
Benefits of SIP
Flexibility - While it is advisable to continue SIP investments with a long-term
perspective, there is no compulsion. Investors can discontinue the plan at any time.
One can also increase/ decrease the amount being invested.
Disciplined Saving - Discipline is the key to successful investments. When a
person invests through SIP, he/she commit themselves to save regularly. Every
investment is a step towards attaining your financial objectives.
Long-Term Gains - Due to rupee-cost averaging and the power of compounding
SIPs have the potential to deliver attractive returns over a long investment horizon.
61. 61
Need of study
The topic of the project is “Mutual Funds Simplified”. It’s essential to know each
and every thing about the mutual funds and mutual funds industry. The study gave
an overview about the various types of mutual funds and how to invest. This
knowledge is a boon during questionnaire formation and interviewing the
customers. The knowledge about the leading broking firms also helped to know
about the loop holes of the organization.
62. 62
Details of pivotal/data entry sheet:-
I was mapped more than 1000 clients. These clients made available to me as an
activity in pivotal lite. I had to access the pivotal lite with the help of the link i.e,
http://icicisecurities.com//crmlite/
The page will appear as below:-
63. 63
Once loggedin, the home page of pivotal Lite , it would get displayed as
below:-
In this my activity list of today will be the default link that gets opened; here I was
able to see the activities assigned for the day.
When I would click on customer information page, the details of the customer
would appear on the page.
64. 64
For update, we had to click on “call information” page. The following page would
get opened:-
65. 65
Then select the appropriate call disposition and call sub disposition based on what
happened when I made the call to the client.
The following call dispositions were possible:-
Contactable:-if you were able to talk to the client.
Non-contactable:-if you were not able to talk to the client.
Wrong number:-if you get a wrong number in data.
CONCLUSION:-
At the last i have collected some names of the customer those who were interested
and were ready to invest in mutual funds through “ICICI DIRECT”.
66. 66
OBJECTIVE
Project named “Mutual Fund Simplified” is an awareness initiative about Mutual
Funds by ICICI Direct.com to its existing customers.
The Objective of this project is to demonstrate the benefits of Mutual Fund and a
survey about Mutual Fund as an investment option conducted on its existing
customers.
The objective of this Project is as follows:
1. How many customers are aware about ICICI Direct.com platform?(through it
they can deal in Mutual Funds).
2. Do the existing customers of ICICI invest in Mutual Fund? If yes, what is the
mode of investment?
3. What percentage of existing customers of ICICI Direct.com are interested in
investing in Mutual Funds in future?
4. Finding out ways and means to improve on the ICICI Direct.com platform
67. 67
CHAPTER- 4
DATA COLLECTION
&
ANALYSIS
Sampling Frame
The sampling frame for the research is consisting of the existing customers of the
ICICI Securities who has ICICI Direct 3in1 account. Judgmental sampling
technique is used for the selection of the population. I have been assigned with
around 1000 customers’ database which contain list of inactive customer, who
never invested in mutual fund through ICICI or they were invested through ICICI
some years ago but now they stop to invest through ICICI direct.com.
Data collectionMethod
Survey:-I have done a survey with the help of Questionnaire to collect the
information about investment related issue.
68. 68
Structured observation:-A questionnaire was designed by the organization itself
to analyses the investors’ investment knowledge about mutual fund. The given
questionnaire is in structured form as all the questions related to their investment. I
have to meet each investor personally to do the survey.
Process review: First I have to call the customer to take appointment with them
and then meet them personally to give them demo on mutual fund and ICICI Direct
website and fill the feedback form from the customer.
Primary Data: I have done my work on primary data which is given by the
company for the survey. This data is comprises of the customers who have either
never invested or stopped investing in mutual funds. These are basically inactive
customers of ICICI Securities.
Sources ofData Collection
The source of data collection was primary data. For the collection of primary data I
have used questionnaire & questionnaire helped to analyze the awareness and
satisfaction level of investors on different parameters.
70. 70
Interpretation:- The above chart shows that out of 50 investors of ICICI, 64% are
male and 36% are female.
Male
64%
Female
36%
Gender Of The Investors
71. 71
2. Age
a.21-30 11
b.31-40 24
c.41-50 09
d.51-above 06
Interpretation:- from the above chart it is shown that out of 50 people, mostly 31-
40 age group is interested in investing. as their ratio is 48% i.e, highest, followed
by 21-30 age group i.e, 22% then 41-50 age group i.e, 18% and least is 51-above
age group i.e, 12% only.
21-30
22%
31-40
48%
41-50
18%
51 Above
12%
Age of investors
72. 72
3.Occupation
a. Student 02
b. Businessman 11
c. Service 13
d. Professional 24
Interpretation:- from the above chart it is inferred that mostly professionals are
prefer to investment plans, as their ratio is highest i.e, 48%.
Student
4%
Bussiness
22%
Service
26%
Proffessional
48%
Occupation of investors
74. 74
4(b).Have you invested in any one of the following in the last 12 months?
a.mutual funds 07
b.fixed deposits 12
c.equity funds 08
d.public provident funds 00
e.debenture/bonds 02
f.insurance 21
Interpretation:-from the above chart it is inferred that most of the people are
interested in Insurance & they have invested in Insurance mostly in last 12 months
after that people invested in fixed deposits.
Fix
Deposits
24%
Insurance
42%PPF
0%
Mutual funds
14%
Equity
16%
Debt/Bonds
4%
Invested in last 12 Months
75. 75
5. How long you have associated with ICICI to your investment ?
a. Less Than 2 Years 12
b. 2 to 5 years 17
c. More than 5 Years 21
Interpretation:-from the above chart it is shown out of 50 people 42% are
associated from more than 5 years & 34% are from 2-5 years & only 24% are from
less than 2 years.
Less than 2
years
24%
2-5 Years
34%
More than 5
years
42%
How long you associated with ICICI
76. 76
6. On which of the following do you baseyour investment Decision?
a. Recommendation by friends &
Relatives
12
b. I do my own online research 07
c. Advice given by financial advisors 17
d. Advertisements 14
Interpretation:-from the above chart it is shown that people are mostly take
decisions to invest on bases of advice given by financial advisors & advertisments
Recommendation
by friend&
relatives
24%
I do my own
online research
14%
Advice givenby
financial advisors
34%
Advertisments
28%
Investment Decision
77. 77
7. Why do you think mutual fund is a good investment option?
a. Low cost 06
b. High returns 08
c. Diversification 21
d. High liquidity 02
e. Safety & transparency 05
f. Tax Saving 08
Interpretation:-from the above chart it is shown that people think that mutual
fund is a good investment option because it is diversified in many securities.
Low
cost
12% High
returns
16%
Diversification
42%
High liquidity
4%
Safty
10%
Tax
saving
16%
MUTUAL FUND IS A GOOD INVESTMENT
OPTION
78. 78
8. What is the mostimportant factor which influence your investment?
a. high return 28
b. Safety of Capital 05
c. Regular income 02
d. liquidity/marketability 03
e. tax benefits 12
Interpretation:-from the above chart it is shown that most important factor which
influences investment is high return. People prefer to investment because they are
seeking for higher return.
High return
56%
Safty of Capital
10%
Regular income
4%
Liquidity/Marketa
bility
6%
Tax benefits
24%
IMPORTANT FACTORS WHICH INFLUENCE
INVESTMENT
79. 79
9.(a) What is your prefered mode of your investments?
a.online 21
b.offline 29
Interpretation:-from the above chart it is shown that most of the people invest
through offline mode because they don’t have exact idea that how to invest in
mutual funds through online.
Online
42%
Offline
58%
MODE OF INVESTMENT
80. 80
9.(b). if offline- What is your preference ?
a. direct 18
b. financial advisor 32
Interpretation:-from the above chart it is shown that most of the people who
preferred offline mode of investment also prefer invest through financial advisor
because they don’twant take risk in investment.
Direct
36%
Financial advisor
64%
PREFERENCEOF OFFLINE
81. 81
10. How frequently do you do online transactions?
a. Every Week or even more frequently 09
b. Two-three times in a month 31
c. Once or twice in six months 04
d. Very Rarely 06
Interpretation:-from the above chart it is shown that mostly people do online
transactions 2-3 times in a month.
Every Weekor
evenmore
frequently
18%
Two-three times
in a month
62%
Once or twice in
six months
8%
Very
Rarely
12%
ONLINE TRANSACTIONFREQUENCY
82. 82
11. How do you check the performance of your investment ?
a. third party portfolio website 28
b. I ask my financial advisor/broker 08
c. my broker/bank provide me
information
14
f. Any other reason 00
Interpretation:-from the above chart it is shown 56% investors out of 50 do check
their investment performance by third party portfolio website.
Third party
portfoliowebsite
56%
I ask my fimancial
advisor/broker/b
ank
16%
My
broker/Bank
providesme
information
28%
CHECK THE PERFORMANCEOF INVESTMENT
83. 83
12. were you aware about the ICICI direct before the demo?
a. yes 34
b. no 16
Interpretation:-from the above chart it is shown that large no. of people was
already aware about ICICI Direct.com platform.
Yes
68%
No
32%
AWARENESSOF DEMO
84. 84
13(a). Have you invested in ICICI through ICICIDIRECT.COM?
a. Yes 17
b. No 33
Interpretation:-from the above chart it is shown that out of 50 people, 33 have not
invested through ICICI Direct.com ever.
Yes
34%
No
66%
INVESTMENT THROUGH ICICIDIRECT.COM
85. 85
13(b). If No then what is the reason for not investing in mutual fund through ICICI
Direct.com?
a. Lack of knowledge 14
b. Not interested in mutual funds 04
c. Difficulty in selection of schemes 26
d. Need assistance to invest 06
Interpretation:-from the above chart it is shown that those who don’t prefer ICICI
Direct.com platform to invest just because that they feel difficulty in selection of
schemes.
Lack of
Knowledge
28%
Not intrestedin
mutual funds
8%
Difficultyin
selectionof
scheme
52%
Needassistance to
investment
12%
REASONS FOR NOT INVESTING
86. 86
14. Do you have any plan to invest in mutual fund through ICICI Direct.com in the
near future?
a. Yes 41
b. No 09
Interpretation:-from the above chart it is shown that out of 50 people, 82% are
planning to invest in mutual fund in near future through ICICI Direct.com
platform.
Yes
82%
No
18%
PLAN TO INVEST THROUGH ICICIDIRECT.COM
IN FUTURE
87. 87
15. How would you rate demo & presentation ?
a. 5(excellent) 04
b. 4(Good) 39
C. 3(effective) 05
d. 2(average) 02
Interpretation:-from the above chart it is shown that out of 50 people, 36 have
given it 4 out of 5.it means most of the people find the demo good and helpful.
5(Exellent)
8%
4(Good)
78%
3(Effective)
10%
2(Average)
4%
RATING OF DEMO AND PRESENTATION
88. 88
FINDINGS
Demographic fact
• Mostly men are aware about mutual fund in comparison to women. Women
need to educate about mutual funds.
• Age group of 31-40 tends to invest most in the mutual funds because they
are most conscious about their family & security.
• Mostly professionals are interested to invest in investment plans as they are
more aware about technology & benefits of investments.
Researchfindings
• People are risk averse in India hence they go for multiple investment
options.
• Most of the people are interested in Insurance & F.D. because they find it
safe & secure.
• People are mostly aware about mutual funds through internet. Internet is
playing important role in creating awareness about mutual funds.
• Most of the people prefer offline mode for transaction because still they are
not assure about online mode(net banking etc).They need to educate that
89. 89
online mode is not only safe & secure but also save their time & money and
easier than offline.
• Among the online mode users, most of the people prefer online transactions
2-3 times in a month.
• The most important factor which influences investment is high return.
People prefer to investment because they are seeking for higher return. it is
contradictory because people want high return but their actions are not
same(as they prefer to invest in insurance & F.D. which not gives high
return). It generates dissatisfaction among investors.
• People think that mutual fund is a good investment option because it is
diversified. They need to educate about other advantages of mutual fund
also.
• Large no. of people was already aware about ICICI Direct.com platform
before the demo.
• People who have account with ICICI Direct.com, most of them never used
this platform for trading.
• Those who don’t prefer ICICI Direct.com platform to invest just because
they feel difficulty in selection of schemes. They need more guidance & help
90. 90
for it. Need to create awareness about various options & schemes in mutual
funds.
• After Demo presentation most of the existing clients of ICICI Direct are
planning to invest in mutual fund through ICICI Direct.com platform in near
future. Few are still against it because of bad experience or they don’t have
extra income source.
• People’s perception towards services offered by ICICI Direct.com is
positive. They find it good.
• Most of the people find the demo good and helpful so they would like to use
ICICI diret.com platform for trading.
91. 91
RECOMMENDATIONS
To increase the percentage of investment in Mutual funds organization have to
look after the following measures:
Creating awareness: Promotional advertisements on television and radio to
provide the better understanding of mutual funds and ease of investment through
ICICI Direct. This will help the customer to know more about the simplicity of the
mutual funds.
Mobile platform: For better customer service, relationship managers or channel
team should provide with the tabs to serve customer at their place.
Increasing financial literacy: Most of the customers have many
doubts/misconception about the Mutual Funds. So, financial literacy is very
essential.
Better customer services: To increase the trust level in the customer better
services are required. Many of the customers have complaints that they were not
told earlier that their Demat account is linked for which they will be charged
annual maintenance charge.
Employee turnover ratio: Due to high work pressure employee turnover is high.
Each time customer has to deal with new relational managers
92. 92
Transparency:The customer should be pre informed about all the features of the
3in1 accounts and annual maintenance charge deduction, in order to maintain the
long term relationship with the customer.
Schemes should be redefined and attractive-The Company should make
attractive mutual fund schemes and present it to customer and good profiling of the
customers should be done and this will give help to the customers in about
choosing and selecting the right investment options for them.
93. 93
SUGGESTIONS
Organization should focus first on increasing its customer services for better
customer experience.
Target pressure should be reduces in order to decrease the high employee turnover
ratio.
There should be a propermonitoring of customer grievance redressed system.
Continuous customer awareness programs in order to overcome their fears of
online transactions and Mutual Funds misconceptions.
94. 94
SUMMARY
ICICI Securities is one of the market leaders among the other mutual fund and
asset management companies. ICICI Securities’ is an integrated securities firm
offering a wide range of services including retail broking, investment banking, etc.
It has a strong customer base and they constantly are trading on equity or investing
in equity. To make them aware and understand about mutual fund, their tax
benefits and also their returns, a certain initiative has started off like “MUTUAL
FUND SIMPLIFIED” which will guide the customer to each and every way of
buying of mutual fund. It includes those customers who was never trade in mutual
fund before.
95. 95
GAINS FROM THE PROJECT
• This project helped me to get a deep knowledge about securities industry in
India.
• This project helped me to get a deep knowledge of mutual fund and their
returns.
• This project helped me to understand the mind-set of the customer and their
perceptions towards mutual fund.
• This project helped me to have an overview of the mutual fund market and
their position.
• This project helped me to understand about tax benefits of mutual funds.
• Handle to customers & deal with them.
96. 96
LIMITATIONS OF THE PROJECT
1.Data was provided by the company was not up to date because of these I faced
many problem for contact them like customer has changed their number, many of
them were wrong number.
2. Generally the respondents were busy in their work and so were not interested in
giving responses.
3. The respondents were very reluctant in disclosing their complete and true
information about themselves and their respective investments.
4.The data base is comprised of the customers who has Demat and Trading account
but never traded.
5. Satisfaction level of the customer with the services of ICICI Securities is not
considered.
6. The time period is limited to 60 days only, so due to time constrained many of
the important segment of customer is missed out.
97. 97
SCOPE FOR FUTURE WORK
A big boom has been witnessed in Mutual Fund Industry in recent times. A large
number of new players have entered the market and trying to gain market share in
this rapidly improving market. My project will help to know the preferences of the
customers, with company, portfolio, mode of investment, option for getting return
and so on they prefer. If the sample size was big, then there would include lot of
hypothesis testing where better conclusions can be drawn. This project report may
help the company to make further planning, strategy and to create awareness
regarding mutual funds in India.
98. 98
CONCLUSION
After making the whole project, I am concluding that this project measures the
awareness of mutual funds of ICICI Securities. Mutual funds have good schemes
and returns; the only sacrifice that one has to make is patience and to wait until
they make good returns. So we have to grow in creating awareness about mutual
funds. Major portion of the people are interested in investing equity rather than any
other product like insurance, fixed deposit. Customers feel that equity is safer and
give good returns than any other investment product. Most of the investment done
by existing customers is in equity. Many people are afraid to invest in mutual
funds as they believe that mutual fund does not give good returns and most of the
clients are risk averse that they are not willing to take unnecessary risk until the
return is sure. People who have invested in past are now scared to invest in market
in any fund whether equity or else .They feel they again bear losses in investing.
The mutual fund industry is still in a growing phase. So the industry can get more
awareness to invest in the mutual fund. They also can conduct seminars and have a
financial advisor to the group of customers to give them constant guidance’s about
mutual funds. They can hire more relationship managers for a good salary and
commission.
99. 99
So this can be concluded that mutual funds need more awareness levels and
initiatives for the consumer to invest, the customer need more knowledge about it
and they need guidance like financial advisors, relationship managers and to give
preferences to the middle income groups which have direct impact on buying
behavior of mutual funds.
