icici synopsys

1. ABSTRACT
The project “ANANLYSIS OF INVESTMENT OPTIONS” gives the brief idea regarding the
various investment options that are prevailing in the financial markets in India. With lots of
investment options like banks, Fixed Deposits, Government bonds, stock market, real estate,
gold and mutual funds the common investor ends up more confused than ever. Each and every
investment option has its own merits and demerits. This project I have discussed about few
investment options available.
Any investor before investing should take into consideration tae safety, liquidity, returns,
entry/exit barriers and tax efficiency parameters. We need to evaluate each investment option on
the above-mentioned basis and then invest money. Today investor faces too much confusion in
analyzing the various investment options available and then selecting the best suitable one. In the
present project, investment options are compared on the basis of returns as well as on the
parameters like safety, liquidity, term holding etc. thus assisting the investor as a guide for
investment purpose.

2. INTRODUCTION TO INVESTMENTS
There are many different definitions of what ‘investment’ and ‘investing’ actually means.
One of the simplest ways of describing it is using your money to try and make more money.
This can happen in many different ways.
All investors are different. The common factor is that you would like to invest money to aim to
make it grow or to receive a regular income from it. We would like to show you that choosing
the most suitable investment for you does not need to be difficult. All you need is the right help
along the way.
The act committing money or capital to an endeavor with the expectation of obtaining an
additional income or profit is known as investment. Investing means putting your money to work
for you.
Investment has different meanings in finance and economics. Finance investment is putting
money into something with the expectation of gain, that upon thorough analysis, has a high
degree of security for the principal amount, as well as security of return, within an expected
period of time. In contrast putting money into something with an expectation of gain without
thorough analysis, without security of principal, and without security of return is speculation or
gambling. As such, those shareholders who fail to thoroughly analyze their stock purchases, such
as owners of mutual funds, could well be called speculators. Indeed, given the efficient market
hypothesis, which implies that a thorough analysis of stock data is irrational, all rational
shareholders are, by definition, not investors, but speculators.
Investment is related to saving or deferring consumption. Investment is involved in many areas
of the economy, such as business management and finance whether for households, firms, or
governments.
To avoid speculation an investment must be either directly backed by the pledge of sufficient
collateral or insured by sufficient assets pledged by a third party. A thoroughly analyzed loan of

3. money backed by collateral with greater immediate value than the loan amount may be
considered an investment. A financial instrument that is insured by the pledge of assets from a
third party, such as a deposit in a financial institution insured by a government agency may be
considered an investment. Examples of these agencies include, in the United States, the
Securities Investor Protection Corporation, Federal Deposit Insurance Corporation, or National
Credit Union Administration, or in Canada, the Canada Deposit Insurance Corporation.
Promoters of and news sources that report on speculative financial transactions such as stocks,
mutual funds, oil and gas leases, commodities, and futures often inaccurately or misleadingly
describe speculative schemes as investment.

4. NEED AND IMPORTANCE OF STUDY
Essentially, Investment Planning involves identifying your financial goals throughout your life,
and prioritizing them. For example, if you want to invest for funding your vacation next year,
don't choose an investment vehicle that has a three-year lock-in. Similarly, if you want to invest
for your daughter's marriage after 10 years, don't invest in 1yr bonds for the next 10 years.
Instead, choose an option that matches your investment horizon.
Investment Planning is important because it helps you to derive the maximum benefit from your
investments. Your success as an investor depends upon your ability to choose the right
investment options. This, in turn, depends on your requirements, needs and goals. The choice of
the best investment options for you will depend on your personal circumstances as well as
general market conditions. For example, a good investment for a long-term retirement plan may
not be a good investment for higher education expenses.

5. SCOPE OF THE STUDY
 You can take investment decision only after analyzing entire process of investment that
starts with funds contribution and ends with getting expectations fulfilled.
 The investment decision rules allow you to formalize the process and specify what
condition or conditions need to be met to accept the project.
 You will take decision only after ensuring that the required expectations in terms of
returns are ensured at any cost.
 The study is conducted to understand the functioning of Equities in India Equity market.
 The choice of location for the study is based on the responses given by the investors of
who are operating the stock market in twin cities
 This study will helpful in understanding the behavior and risk preferences of investors.
OBJECTIVE OF THE STUDY
The primary objective of the project is to make an analysis of various investment decisions.
The aim is to compare the returns given by various investment decisions. To cater the
different needs of investor, these options are also compared on the basis of various
parameters like safety, liquidity, risk, entry/exit barriers, etc.
The project work was undertaken in order to have a reasonable understanding about the
investment industry. The project work includes knowing about the investment DECISIONS like
equity, bond, gold and mutual fund. All investment DECISIONS are discussed with their types,
workings and returns.

6. METHODOLOGY
Equities, Bonds, Gold, Mutual Funds and Life Insurance were identified as major types of
investment decision.
The primary data for the project regarding investment and various investment DECISIONS were
collected through interactions had with the employees in the organization i.e ICICI.
The secondary date for the project regarding investment and various investment DECISIONS
were collected from websites, textbooks and magazines.
Primary method: This method includes the data collected from the personal interaction with
authorized members of ICICI Ltd.
Secondary method: The secondary data collection method includes:
 The lecturers delivered by the superintendents of respective departments.
 The brochures and material provided by ICICI Ltd.
 The data collected from the magazines of the NSE, economic times, etc.
 Various books relating to the investments, capital market and other related topics.
Then the averages of returns over a period of 11 years are considered for the purpose of
comparison of investment options. Then, critical analysis is made on certain parameters like
returns, safety, liquidity, etc. Giving weightage to the different type of needs of the investors and
then multiplying the same with the values assigned does this.

7. LIMITATIONS OF THE STUDY
 The study was limited to only five investment options.
 Most of the information collected is secondary data.
 The data is compared and analyzed on the basis of performance of the investment options
over the past five years.
 While considering the returns from mutual funds only top performing schemes were
analyzed.
 It was very difficult to obtain the date regarding the returns yielded by others and hence
averages were taken.

8. COMPANYPROFILE
 ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$
93 billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271 million)
for the year ended March 31, 2012. The Bank has a network of 2,897 branches and
10,021 ATMs in India, and has a presence in 19 countries, including India.

ICICI Bank offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialised
subsidiaries in the areas of investment banking, life and non-life insurance, venture
capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches
in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab Emirates, China,
South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has
established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).
 Corporate Profile
 ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion (US$
77 billion) as on December 31, 2009.
 Board Members
 Mr. K. V. Kamath, Chairman
 Mr. Sridar Iyengar
 Mr. Homi R. Khusrokhan
 Mr. Lakshmi N. Mittal
 Mr. Narendra Murkumbi
 Dr. Anup K. Pujari
 Mr. Anupam Puri

9.  Mr. M.S. Ramachandran
 Mr. M.K. Sharma
 Mr. V. Sridar
 Prof. Marti G. Subrahmanyam
 Mr. V. Prem Watsa
 Ms. Chanda D. Kochhar, Managing Director & CEO
 Mr. Sandeep Bakhshi,
Deputy Managing Director
 Mr. N. S. Kannan,
Executive Director & CFO
 Mr. K. V. Kamath is a mechanical engineer and did his management studies from the
Indian Institute of Management, Ahmedabad. He joined ICICI in 1971 and worked in the
areas of project finance, leasing, resources and corporate planning. In 1988, he joined the
Asian Development Bank and spent several years in south-east Asia before returning to
ICICI as its Managing Director & CEO in 1996. He became Managing Director & CEO
of ICICI Bank in 2002 following the merger of ICICI with ICICI Bank. Under his
leadership, the ICICI Group transformed itself into a diversified, technology-driven
financial services group, that has leadership positions across banking, insurance and asset
management in India, and an international presence. He retired as Managing Director &
CEO in April 2009, and took up the position of non-executive Chairman of ICICI Bank
effective May 1, 2009. He was the President of the Confederation of Indian Industry (CII)
for 2008-09. He was awarded the Padma Bhushan by the President of India in May 2008.
He was conferred the Lifetime Achievement Awards at the Financial Express Best Bank
Awards 2008 and the NDTV Profit Business Leadership Awards 2008; was named
'Businessman of the Year' by Forbes Asia and The Economic Times' 'Business Leader of
the Year' in 2007; Business Standard's "Banker of the Year" and CNBC-TV18's
"Outstanding Business Leader of the Year" in 2006; Business India's "Businessman of
the Year" in 2005; and CNBC's "Asian Business Leader of the Year" in 2001. He has
been conferred with an honorary PhD by the Banaras Hindu University.